COMMISSION STAFF WORKING DOCUMENT Background document Accompanying the document Report from the Commission to the European Parliament, the Council and the European Economic and Social Committee 2011 Annual Report on Financial Assistance for Enlargement (IPA, PHARE, CARDS, Turkey Pre-Accession Instrument, Transition Facility)
Date: 2012-11-20
Institutions: European Commission
Subjects: Albania, Bosnia and Herzegovina, Croatia, EU financing, Iceland, Kosovo, Montenegro, North Macedonia, Serbia, Türkiye, pre-accession aid

EUROPEAN 
COMMISSION 

Brussels, 20.11.2012  
SWD(2012) 385 final 

COMMISSION STAFF WORKING DOCUMENT 

Background document 

Accompanying the document 

Report from the Commission to the European Parliament, the Council and the 
European Economic and Social Committee 

2011 Annual Report on Financial Assistance for Enlargement (IPA, PHARE, CARDS, 
Turkey Pre-Accession Instrument, Transition Facility) 

{COM(2012) 678 final} 

EN 

   EN 

 
 
 
 
  
 
Table of Contents 

A. 

FINANCIAL ASSISTANCE TO ICELAND, THE WESTERN BALAKANS AND 
TURKEY........................................................................................................................ 4 

CROATIA .............................................................................................................................. 4 

1. SUMMARY ................................................................................................................... 4 

2. STRATEGIC PLANNING AND PROGRAMMING ................................................... 4 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011.......................... 9 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 21 

TURKEY.............................................................................................................................. 25 

1. SUMMARY ................................................................................................................. 25 

2. STRATEGIC PLANNING AND PROGRAMMING ................................................. 25 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011........................ 31 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 46 

ICELAND ............................................................................................................................ 51 

1. SUMMARY ................................................................................................................. 51 

2. STRATEGIC PLANNING AND PROGRAMMING ................................................. 51 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011........................ 55 

THE FORMER YUGOSLAV REPUBLIC of MACEDONIA............................................ 57 

1. SUMMARY ................................................................................................................. 57 

2. STRATEGIC PLANNING AND PROGRAMMING ................................................. 57 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011........................ 60 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 67 

MONTENEGRO .................................................................................................................. 71 

1. SUMMARY ................................................................................................................. 71 

2. STRATEGIC PLANNING AND PROGRAMMING ................................................. 71 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011........................ 76 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 86 

ALBANIA ............................................................................................................................ 90 

1. SUMMARY ................................................................................................................. 90 

2. STRATEGIC PLANNING AND PROGRAMMING ................................................. 90 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011........................ 95 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES
........................................................................................................................................ 103

2 

 
 
 
SERBIA ............................................................................................................................. 106 

1. SUMMARY ............................................................................................................... 106 

2. STRATEGIC PLANNING AND PROGRAMMING ............................................... 106 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011...................... 110 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES
........................................................................................................................................ 119 

BOSNIA AND HERZEGOVINA...................................................................................... 123 

1. SUMMARY ............................................................................................................... 123 

2. STRATEGIC PLANNING AND PROGRAMMING ............................................... 123 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011...................... 127 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES
........................................................................................................................................ 134 
KOSOVO* .......................................................................................................................... 137 
1. SUMMARY ............................................................................................................... 137 

2. STRATEGIC PLANNING AND PROGRAMMING ............................................... 137 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011...................... 140 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES
........................................................................................................................................ 144 

B.           MULTI-BENEFICIARY........................................................................................... 150 

1.       SUMMARY ......................................................................................................... 150 

2.       STRATEGIC PLANNING AND PROGRAMMING ......................................... 150 

3.       IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011................ 154 

C. 

TOWARDS A MORE EFFICIENT AND EFFECTIVE DELIVERY OF 
ASSISTANCE MORE CLOSELY TO THE ENLARGEMENT POLICY 
PRIORITIES AND THE SECTOR APPROACH ..................................................... 166 

TOWARD A NEW IPA REGULATION FOR 2014 - 2020Error! Bookmark not 

1. 
defined. 

2.  

TOWARDS A MORE EFFICIENT DELIVERY OF ASSISTANCE: 
GRADUALLY IMPLEMENTING THE SECTOR APPROACH TO THE 
ENLARGEMENT POLICY PRIORITIES ......................................................... 166 

D. 

PHARE, CARDS, TURKEY PRE-ACCESSION AND TRANSITION FACILITY –
FINANCIAL DATA AT 31ST DECEMBER ............................................................. 171 
PHARE, TURKEY PRE-ACCESSION AND TRANSITION FACILITY FUNDS 
IMPLEMENTATION BY CPOUNTRY AT THE END OF 2011: .................... 171 

1. 

2.  

CARDS FUNDS IMPLEMENTATION BY COUNTRY AT THE END OF 2011.
173 

3 

 
 
 
 
A. 

FINANCIAL ASSISTANCE TO ICELAND, THE WESTERN 
BALAKANS AND TURKEY 

CROATIA 

1. SUMMARY 

For  Croatia,  2011  marked  the  culmination  of  its  accession  negotiations  with  the  European 
Union,  with  the  closure  of  the  accession  negotiations  on  30  June  2011,  followed  by  the 
signature of the Accession Treaty on 9 December 2011.  

The  implementation  of  EU  financial  assistance  in  2011  in  Croatia,  also  in  line  with  the 
priorities  selected  for  the  MIPD  2011-2013,  accompanied  these  developments  by  providing 
support  for  completing  reforms  and  building  up  capacity  in  the  key  areas  necessary  for 
assuming  the  obligations  of  membership,  such  as  justice  and  home  affairs  or  public 
administration reform, as well continuing the efforts of preparing Croatia for the use of post-
accession funds.  The 2011 IPA programme of EUR 39.159 million is consistent with these 
priorities. 

A Special Report by the Court of Auditors, finalised after a meeting between the Commission 
and  the  Court  in  October  2011,  concludes  that  EU  pre-accession  assistance  is  making  a 
significant contribution to supporting Croatia's preparations to manage structural and cohesion 
funds.  It  also  stressed  that  further  progress  in  capacity-building  to  manage  EU  funds  is 
needed.  

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document  

In  contrast  to  the  2009-2011  MIPD,  which  structured  the  priorities  for  EU  assistance 
according to the Copenhagen criteria for enlargement (the political criteria, economic criteria, 
and  the  ability  to  assume  the  obligations  of  membership),  the  2011-2013  MIPD  reflects  the 
shift  to  a  more  sectorial  approach  to  EU  financial  assistance  under  the  IPA  Instrument.  A 
positive  effect  of  this  new  approach  was  the  more  targeted  assistance  allowing  easier 
identification of the remaining gaps as well as improving donor coordination.  

The  key  sectors  identified  for  EU  assistance  and  detailed  in  the  MIPD  are  as  follows:  1. 
Justice  and  home  affairs  and  fundamental  rights;  2.  Public  administration  reform;  3. 
Environment  and  climate  change;  4.  Transport;  5.  Private  sector  development;  6.  Social 
development; 7. Agriculture and rural development.  

4 

 
 
 
The choice to focus on these particular sectors came as a result of the conclusions highlighted 
in the Enlargement  Strategy  and  Main Challenges 2010—2011 and the accompanying  2010 
Progress  Report  for  Croatia1,  where  the  need  to  consolidate  reforms  in  the  fields  of  rule  of 
law,  fight  against  corruption  and  reform  of  the  public  sector  had  been  identified  as  key 
accession priorities. 

Moreover, addressing the priorities identified under the sectors 3 to 7 continues to contribute 
to the "Europe 2020" objectives of the EU by improving regional competitiveness, as well as 
human  capital  and  natural  resources  management.  The  implementation  of  the  assistance  in 
these sectors took place under IPA Components III, IV and V, allowing Croatia to continue its 
preparation  managing  decentralised  funds.  A  special  report  published  by  the  Court  of 
Auditors2 has confirmed the good management of these funds. 

Table 1: MIFF3 allocations per component, in EUR million  

Component 

2011 

2012 

2013 

2011-2013 

I – Transition Assistance and 
Institution Building 

39,959,128

39,969,161 19,256,943 

99,185,232

II – Cross-border cooperation 

15,869,158

16,442,542

8,499,192 

40,810,892

III – Regional Development 

58,200,000

57,578,127 31,000,000  146,778,127

IV – Human Resources 
Development 

16,000,000

16,040,000

9,000,000 

41,040,000

V – Rural Development 

26,500,000

26,151,182 27,700,000 

80,351,182

TOTAL 

156,528,286 156,181,012 95,456,135  408,165,433

2.2 Programming 

2.2.1 Component I  

The  2011  National  Programme  for  Croatia  under  the  IPA  Transition  Assistance  and 
Institution Building component was adopted by the European Commission on 11 November 
2011,  on  the  basis  of  a  proposal  from  the  Croatian  National  IPA  Coordinator  (NIPAC)  and 

1Enlargement Strategy and Main Challenges 2010-2011, COM(2010) 660 of 9 November 2010, 
http://ec.europa.eu/enlargement/press_corner/key-documents/reports_nov_2010_en.htm 
2 European Court Of Auditors: "Has EU assistance improved Croatia's capacity to manage post accession 
funding?" Special Report No 14/2011 
3Communication 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. 

5 

 
 
                                                            
 
following  extended  consultations  with  the  European  Commission.  In  addition  to  this 
programme,  EUR 0.33  million  have  been  allocated  to  support  activities  on  "Connecting  the 
Croatian  Customs  Administration  (CCA)  to  the  Common  Communication  Network  and 
Common System Interface" and EUR 5 million to support the preparation of a project pipeline 
for Structural and Cohesion Funds in Croatia under the JASPERS facility (Joint Assistance to 
Support Projects in European Regions). These two projects were adopted separately from the 
main National Programme in order to allow a quicker implementation.  

The main 2011 programme contains 10 projects, with the total EU contribution amounting to 
EUR 33.8  million.  Given  Croatia's  advanced  stage  of  membership  preparations,  and  in  line 
with the 2011-2013 MIPD, the EU assistance under this IPA programme increasingly moved 
from  sheer  adoption  and  concrete  implementation  of  the  acquis  to  more  general 
administrative  strengthening  of  post–accession  priorities,  with  a  particular  focus  on  justice, 
home affairs and fundamental rights, as well as public administration reforms. These priorities 
had also been highlighted in the Enlargement Strategy and Main Challenges 2010—2011 and 
2010 Croatia Progress Report4.  

The Commission, with the support of the EU Delegation in Croatia, organised consultations, 
both on the MIPD 2011-2013 and on the 2011 National Programme, with EU Member States' 
embassies  and  local  branches  of  International  Financial  Institutions  (IFIs)  in  Zagreb.  The 
assistance  provided  by  IFIs  and  bilateral  donors  further  reinforced  the  prospects  for 
sustainability of EU assistance, with a good example provided by the Justice Sector Support 
Programme financed by the World Bank, which started in 2010 (EUR 27.9 million) and thus 
complementing the actions to be financed by the IPA 2011 national programme.  

Lessons  highlighted  by  a  number  of  IPA  related  evaluations,  such  as  the  thematic  Public 
Administration  Reform5  evaluation,  the  Country  Programme  Interim  Evaluation  2009 
(performed  by  the  European  Commission),  as  well  as  the  Country  Programme  Interim 
Evaluation  2010  (carried  out  by  the  Croatian  authorities),  were  taken  into  account  in  the 
course  of  the  programming  process.  In  particular,  more  attention  was  paid  to  conditionality 
and sequencing, where measures have been deployed to improve the administrative ability to 
implement  projects  and  to  enhance  the  involvement  of  decision-makers  in  the  execution  of 
projects, and to facilitate inter-institutional coordination. 

Furthermore, following the mid-term evaluation of IPA assistance, the NIPAC has taken on a 
more  proactive  role  throughout  the  project  preparation  and  selection  process.  In  particular, 
efforts  were  made  to  enhance  their  role  in  the  prioritisation,  sequencing  and  quality 
assessment of project proposals before their submission to the Commission.  

4 Enlargement Strategy and Main Challenges 2010-2011, COM(2010) 660 of 9 November 2010, 
http://ec.europa.eu/enlargement/press_corner/key-documents/reports_nov_2010_en.htm 
5Supporting Public Administration Reform in Croatia – Thematic Evaluation of EU and other support, MWH 

Consortium, June 2009. 

6 

 
 
                                                            
 
Table  2:  Indicative  financial  allocations  for  the  year  under  the  National  Programme,  per 
priority axis and per project, in EUR million: 

Priority Sector 

Projects 

Budget  

Sector 1: Justice and Home Affairs and Fundamental Rights  

NP 2011  part 3 - 1) 

01-23 - Support to the rationalization of court network 

NP 2011  part 3 - 2) 

01-35 - Civil Society Facility – Active Civil Society 
for ensuring durability of policy reforms in post-
accession Croatia  

NP 2011  part 3 - 3) 

01-23 - Restoration and Equipping of the premises for 
PNUSKOK Osijek and  Rijeka  

NP 2011  part 3 - 4) 

03-24 - Strengthening capacities of the Ministry of the 
Interior to combat computer crime 

NP 2011  part 3 - 5) 

NP 2011  part 3 - 6) 

03-24 - Construction and Equipping of the Centre for 
Training Dog Handlers and Police Dogs 

03-24 - Upgrading the capacities of the Reception 
Centre for Foreigners 

Sector 2: Public Administration Reform  

NP 2011  part 3 - 7) 

03-18 – Technical assistance in development of 
business statistics and upgrading of data collection 
system 

NP 2011  part 3 - 8) 

04-40 - Flexible Facility for Reinforcement of 
Administrative Capacity 

NP 2011  part 1  

"Connecting the Croatian Customs Administration 
(CCA) to the Common Communication Network and 
Common System Interface (CCN/CSI)" 

Sector 3 + Sector 4: Environment and Climate Change" and "Transports"  

NP 2011  part 2 

JASPERS - Support to the preparation of a project 
pipeline for Structural and Cohesion Funds in Croatia 

Sector 7: Agriculture and Rural Development  

NP 2011  part 3 - 
9) 

03-11 - Strengthening the PAAFRD capacities for 
meeting the challenges arising from the CAP and the 

7 

19.153

9.376

2.859

1.793

0.665

2.312

2.148

3.762

0.693

2.739

0.330

5.000

5.000

4.180

4.180

 
 
CFP reforms and the post-2013 period  

Supporting programmes  

NP 2011  part 3 - 
10) 

04-65 - Participation in Union Programmes and 
Agencies  

TOTAL 

2.2.2 Component II  

7.062

39.159

The Financing Decisions allowing for the deployment of IPA 2010 and 2011 funds regarding 
CBC  with  Western  Balkan  countries  had  been  adopted  in  August  and  September  2010.  In 
2011,  the  CBC  envelopes  available  for  actions  on  borders  with  Croatia  amount  to 
EUR 2 million, for the border with Bosnia and Herzegovina EUR 0.9 million, for the one with 
Montenegro, EUR1.8 million and the same amount is allocated  for cooperation with Serbia, 
these  amounts  representing  the  contributions  from  both  sides  of  the  border  for  each 
programme. 

In the course of 2011, all 2008 CBC programmes between Croatia and its IPA neighbouring 
countries (3 programmes) were granted an extension of the contracting deadline to allow for 
the full implementation. 

2.2.3 Component III  

Under IPA Component III, "Regional Development", the programming exercise continued to 
follow a multi-annual approach, mirroring the Cohesion and Structural Funds approach. Three 
Operational  Programmes 
the  Environment,  Transport  and  Regional 
Competitiveness sectors were originally agreed for the period 2007-2009. They underwent a 
first revision in 2010 following the allocation of 2010-2011 funds, and will be revised again 
in 2012 in order to cover the full programming period (2007-2013).  

related 

to 

Despite these two revisions, the strategic priorities of these programmes remain the same: the 
development of waste management infrastructure,  the  improvement  of  the  water  supply  and 
the waste water management systems, the upgrading of the rail and inland waterway systems, 
the  support  of  business-related  infrastructure,  to  the  technology  transfer  and  the  Small  and 
Medium Enterprises (SMEs).  

8 

 
 
 
2.2.4 Component V 

With    regard  to  the  multi-annual  programme  2007-2013  for  IPA  Component  V,  adopted  in 
February 2008, a fourth proposal for modification was submitted to the Commission in July 
2011, following consultations and approval by the national stakeholders.   

Croatia proposed a number of technical modifications meant to improve clarity and simplify 
the  administration  and  implementation  of  the  programme  by  taking  into  account  experience 
gained  so  far.  The  main  modification  concerned  the  technical  adaptation  of  measure  202 
"Preparation and implementation of local rural development strategies". These updates were 
also  intended  to  harmonize  the  programme  with  the  accreditation  process.  This  measure  is 
particularly crucial in the involvement of local rural actors as well as the implementation of 
IPARD6 through public-private partnerships and Local Development Strategies.  

Moreover, due to lessons learnt from earlier practice, this amendment is expected to increase 
absorption  thanks  to  the  eligibility  of  projects  from  Axis  I  measures  for  realisation  under 
Local Development Strategies.  

Additionally, Croatia has proposed to broaden the scope of potential beneficiaries under the 
Measure  101  "Investment  in  agricultural  holdings"  adjusting  and  updating  the  programme 
indicators.  

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 Success stories 

IPA 2008 Component I 'Support to the establishment of a State School for Judicial Officials', 
EUR 230 000.  

Starting  2013  Croatia  will  appoint  new  judges  and  prosecutors  exclusively  from  candidates 
who  having  successfully  completed  the  two-year  cycle.  This  project  supported  the  Croatian 
Judicial  Academy,  in  charge  for  the  School  and  other  involved  institutions  (State  Judicial 
Council, State Prosecutorial Council, etc.) in preparing a training strategy, developing training 
programmes, and strengthening  selection procedures through structured interviews based on 
objective  criteria.  The  project  contributed  to  the  general  need,  based  on  EU  standards,  of 
increasing  the  independence,  professionalism  and  accountability  of  the  judicial  system. 
Specific  recommendations were  provided in  order to guarantee the success of the School in 
recruiting the most suitable candidates becoming the future Croatian judges and prosecutors 
responsible  for  managing  the  Croatian  judicial  system  within  the  EU  internal  market  and 
called to verify on the correct implementation of the EU law in Croatia. 

6 Instrument for Pre-Accession Assistance for Rural Development. 

9 

 
 
                                                            
IPA  2008  Component  I  'Developing  the  National  Information  System  for  Nature  Protection 
Supervision', EUR 250 000.  

The  purpose  of  the  project  was  to  ensure  the  sustainable  management  and  strengthening  of 
supervision  in  proposed  Natura  2000  sites  through  improved  administration  of  biodiversity 
data for efficient implementation (pursuant to the Birds and Habitats Directives). The project 
contributed to the development of an information system that will be used by inspectors and 
supervisors  engaged  in  nature  protection  supervision.  New  additional  functionality  and  new 
software  modules,  specially  designed  for  nature  protection  inspection  and  supervisors,  were 
established.  

IPA Component IV 2007-2011, 'Vocational Education and Training (VET) Quality Assurance 
Development', EUR 1.74 million.  

The  project  assisted  with  the  implementation  of  pilot  self-assessment  process  in  20  VET 
secondary schools throughout Croatia, in line with the recommendation of European Quality 
Assurance  Reference  Framework  for  VET  (EQARF-VET).  The  Self-Assessment  Manual 
produced with the assistance of the project will serve as the main guiding instrument for the 
remaining approximately 300 VET schools in Croatia to undertake the same self-assessment 
process.  The  experience  of  20 piloted  schools'  staff  will  be  available  through  peer  learning 
activities  organized  among  VET schools,  and  is  already  available  through  a  web-based  tool 
which was created with the assistance of this project. In future all VET schools will upload 
the relevant documents into this newly created tool. This will ultimately result in creation of a 
comprehensive  database  which  will  allow  overview  at  national  level  and  will  allow  the 
responsible national authorities to adopt informed decision for modernisation of formal VET 
in Croatia.  

3.2 Overview of the implementation status of the different instruments and components   

Regarding 
implementation of the assistance by the Croatian authorities. 

IPA,  good  progress  was  accomplished  concerning 

the  decentralised 

Under Component I, this development was expressed by a reduction of the "rejection rate" – 
in  the  context  of  the  EU  Delegation's  ex  ante  control  on  tendering  and  contracting  files 
submitted by the Croatian authorities - in the second half of 2011 to below 5%. This positive 
trend needs to be sustained in 2012. However, while gradually expanding, absorption capacity 
remained a challenge for the Croatian authorities in order to catch up past delays (see Part II 
on financial data). The Commission continued to help the authorities to select mature project 
proposals for funding in order to ease future implementation.  

In regard to Component II, for CBC programmes with other IPA countries, all grants from the 
first call for proposals were successfully contracted in the first quarter of 2011. The second 
calls for proposals for all programmes were launched in the second half of 2011. Regarding 

10 

 
 
programmes on the border with current Member States, Croatia continued to participate very 
actively  in  the  bilateral  actions  with  Hungary  and  Slovenia,  as  well  as  in  the  regional 
programmes  IPA  Adriatic,  "Mediterranean"  (MED)  and  "South-East  Europe"  (SEE).  60 
projects  were  awarded  more  than  EUR 14 million  EU  funding  within  the  Hungary-Croatia 
IPA  Cross-border  Cooperation  Programme.  Under  this  last  programme,  the  third  Call  for 
Proposals was launched on 22 November 2011.  

In the framework of the Slovenia-Croatia cross-border programme, whose main purpose is to 
make  the  cross-border  area  between  Croatia  and  Slovenia  highly  competitive  and  also  to 
create  sustainable  living  conditions  and  prosperity  for  its  inhabitants  by  exploiting 
development opportunities arising out of joint cross-border actions, the third Call is expected 
to  be  launched  in  2012.  This  is  one  of  the  best  performing  IPA  cross-border  programmes 
under  shared  management,  which  is  also  due  to  the  commitment  of  Croatia  to  this 
programme.  

As regards Component III, under the Environment Operational Programme all available funds 
were committed, and contracting was strong in 2011, reaching more than 50% of the available 
the  end  of  2011 
funds.  Nevertheless,  due 
EUR 5.2 million  were  withheld,  expecting  more  improvement  in  the  implementation  of 
operations. 

to  previously  accumulated  delays,  at 

For the Transport Operational Programme, the complexity of the projects specifically in this 
sector  caused  important  delays  in  the  implementation  of  the  programme,  with  a  contracting 
rate  being  at  17%.  Nevertheless,  tendering  accelerated  during  2011  and  much  of  the 
accumulated backlog was reduced. However, this could not prevent the automatic withhold of 
EUR  9.3  million  at  the  end  of  2011.  Another  similar  situation  can  be  found  for  the  third 
Operational  Programme,  namely  Regional  Development,  where  delays  in  the  design  and 
tendering of projects led to a contracting rate of 30%. 

Under Component V, Croatia received the conferral of management powers for the first two 
measures  under  IPA  Rural  Development  only  in  November  2009  and  for  two  additional 
measures in March 2010. Since then, Croatia continued the implementation of IPARD. Three 
additional calls for applications were launched in 2011 for the first two conferred 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'.  

So far, the implementing body – IPARD Agency has received 209 applications out of which 
90 projects were contracted, with an IPA contribution of over EUR 19 million by the end of 
2011.  As  regards  the  two  measures  conferred  in  March  2010,  namely  measure  301 
'Improvement and development of rural infrastructure' and measure 302 'Diversification and 
development of rural economic activities' two calls were launched in 2011. As a result, 156 
applications were received for both measures, however only 18 were contracted. This result 
was a consequence of an important rejection rate under the first call for measure 301 'Rural 

11 

 
 
infrastructure'. Difficulties encountered by beneficiaries – Croatian small municipalities, were 
related  to  implementation  of  public  procurement  rules.  It  must  be  however  noted  that  the 
second  call  for  the  same  measure  was  much  more  successful  with  45  Memoranda  of 
Understanding signed.  

The measure 'Rural infrastructure' continued to play an important role in the IPA Component 
V  programme,  mainly  due  to  its  social  impact  on  the  population  within  the  rural  areas. 
Lessons  learnt  from  the  first  call  bore  fruit  under  the  second  call:  higher  interest  from 
municipalities  as  well  as  their  better  readiness  as  regards  quality  of  applications.  Based  on 
submitted  projects  it  could  be  analysed  that  Croatian  rural  small  towns  and  villages  want 
mainly to improve and invest in sewerage system, wastewater treatment or local roads. 

While  the  contracting  performance  in  Croatia  improved  in  2011,  payment  levels  to  final 
beneficiaries  remained  low.  This  is  due  to  the  fact  completion  of  rural  development  project 
can be quite lengthy, and therefore only a small part of contracted projects could be paid in 
2011. Pre-financing included, the Commission disbursed about EUR 26 million by the end of 
2011. 

Moreover  during  2011,  the  Croatian  authorities  focused  strongly  also  on  the  preparation  of 
procedures for conferral of management powers for the two remaining programme measures. 
The  national  accreditation  was  granted  for  measure  501  "Technical  Assistance"  and  the 
measure  202  "Preparation  and  implementation  of  local  development  strategies"  was 
accredited  at  the  beginning  of  2012.  It  is  hoped  that  the  conferral  of  management  for  these 
measures should be obtained in mid-2012, followed by calls for applications. 

Although  Croatia  made  important  progress  in  2011  in  the  implementation  of  the  IPA  Rural 
Development Programme, the delays in implementation and more particularly in payments to 
final beneficiaries accumulated so far persisted in 2011. Due to this situation, according to the 
N+3 budgetary rule, a part of the funds allocated in 2008 had to be suspended at the end of the 
2011,  and  more  funds  are  at  risk  of  suspension  in  2012.  Therefore,  in  the  future  all  efforts 
shall  be  oriented  towards  further  calls  for  applications  together  with  shortening  the  period 
between these calls and completing the payments to beneficiaries.  

Nevertheless,  the  Court  of  Auditors'  Special  Report  on  Croatia7,  prepared  during  2011, 
indicates  that  EU  assistance  has  made  an  important  contribution  to  building  up  Croatia's 
capacity for managing post-accession funding, including by "learning-by-doing".  

3.3 Sector I: Justice and Home Affairs and Fundamental Rights  

IPA  2007  Component  I  'Strengthening  Capacities  of  the  Ministry  of  the  Interior  to  Combat 
Narcotic Drugs Trafficking and Drug Abuse', EUR 2.2 million.  

7 The report was published on 1 February 2012: http://eca.europa.eu/portal/pls/portal/docs/1/11760728.PDF 

12 

 
 
                                                            
This project supported the strengthening of the ability of the Ministry of Interior in the fight 
against  organised  crime,  especially  in  the  field  of  combating  drugs  trafficking  and  drugs 
abuse.  It  contributed  to  enhancing  the  ability  of  criminal  police  officers,  to  strengthen  the 
institutional  capacities  of  the  Forensic  Science  Centre  ”Ivan  Vučetić”  in  the  area  of  drugs 
analysis,  and  to  establish  a  National  Contact  Point  for  the  transmission  of  synthetic  drugs 
samples and data exchange with other Forensic Science Centres. Some of the main achieved 
results  were,  for  example,  increased  capacity  for  narcotic  drugs  analysis  and  profiling, 
development  of  a  protocol  for  cooperation,  communication  and  strengthening  of  the 
institutional  control  model  for  precursors,  establishment  of  contact  points  in  governmental 
institutions,  and  training  of  police  officers  on  advances  methods  of  investigations  related  to 
drug crimes. 

IPA 2007 Component I 'Development of modern information system for strengthening Anti-
Corruption Inter Agency cooperation', EUR 460 000.  

This  project  supported  Croatia  in  its  efforts  to  implement  the  National  Anti-Corruption 
Strategy  (adopted  in  2008).  The  success  of  the  Strategy  relies  very  much  on  the  good 
cooperation  among  all  stakeholders  (Croatian  Ministries,  specific  administrations,  control 
bodies, other agencies, etc.). Therefore, the project focussed on the development of an IT tool 
(including Internet portal) to support the Ministry of Justice in coordinating the Croatian anti-
corruption  efforts  of  all  stakeholders;  improving  its  capacity  in  managing  the  flow  of 
information from and towards other involved bodies, facilitating its monitoring and analytical 
tasks,  and  improving  its  communication  towards  the  public.  The  project  contributed  to 
increase  the  public  awareness  on  corruption.  Its  effects  should  allow  a  better  prevention  of 
corruption,  allowing  Croatia  to  become  also  more  attractive  to  international  business  and 
foreign investments. 

3.4 Sector II: Public Administration Reform 

In  2011,  the  EU  Delegation  was  consulted  on  156  requests  for  TAIEX  assistance.  The 
majority  of  them  were  related  to:  Chapter  11  Agriculture  and  Rural  Development  (68 
requests),  Chapter 27  Environment  (21  requests),  Chapter  24  Freedom,  Security  and  Justice 
(19  requests),  Chapter 23  Judiciary  and  Fundamental  Rights  (15  requests),  and  Chapter  28 
Health  and  Consumer  Protection  (10  requests).  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 (on average one each 
working day). 

In 2011, a total of 20 Twinning contracts were under implementation. The sectors targeted by 
Twinning  and  partner  countries  were  as  follows:  under    IPA  2007:  customs  (Spain), 
regulatory impact assessment (UK), competition and state aid (Italy with UK), anti-corruption 
(one with Germany and another one with France and Italy), personal data protection (Spain), 
combating  drugs  trafficking  (Austria),  paying  agency  for  agricultural  funds  (Austria  with 

13 

 
 
France  and  Slovakia),  energy  (Demark  with  Latvia  and  Slovenia),  chemical  safety  (Sweden 
with Italy), health and safety at work (Austria with Slovakia), plant protection products and 
pesticide residues (UK); under IPA 2008: judiciary reform (one with Germany and France and 
another  one  with  the  UK  and  Czech  Republic),  road  safety  (Germany  with  Poland), 
preparation for Cohesion Funds (one with Lithuania and Hungary and another one with Italy 
and Poland); under IPA 2009: fight against sexual exploitation and sexual abuse of children 
(UK), anti-discrimination (Austria), coordination of social security (Sweden). 

17  Twinning  light  contracts  were  under  implementation  in  2011  in  the  fields  of:  under  IPA 
2007: protection of EU financial interests (Romania), public procurement (Greece), medicinal 
products and medical devices (Spain), environment (Austria), preparation for Structural Funds 
(Poland);  under  IPA 2008:  fight  against  counterfeiting  of  banknotes  and  coins  (Germany), 
fight  against  corruption  in  customs  (Spain),  fight  against  corruption  in  taxation  (Austria), 
public  procurement  (Austria),  judiciary  (Germany),  taxation  (France),  education  (Finland), 
employment  (Germany);  under  IPA  2009:  postal  services  (Spain),  environment  (Spain), 
customs  (Italy),  judiciary  (Lithuania).  The  total  amount  of  Twinning  and  Twinning  light 
contracts  under  implementation  in  2011  was  EUR  24.6  million.  Several  Member  States 
applied  to  the  various  Twinning  projects  in  Croatia,  resulting  in  a  wide  spread  of  Member 
States selected by Croatian ministries to implement these contracts. 

The SIGMA Programme, a joint initiative of the Organisation for Economic Co-operation and 
Development  (OECD)  and  the  European  Union  aims  to  strengthen  public  governance 
institutions  in  Croatia,  in  order  to  facilitate  the  accession  process  by  assisting  the  reform  of 
the public sector. During 2011 SIGMA support to Croatia covered  in the area of judiciary and 
public  administration  reform  ,  where  SIGMA  provided  assistance  to  the  authorities  in 
finalising the relevant legal framework , as well as participating in round tables organised by 
NGOs on the following issues: prevention of conflict of interest, financing of political parties, 
local and regional self-government, etc. Furthermore, SIGMA provided. SIGMA also assisted 
the national authorities in the areas of public  procurement  and  financial  management  (Anti-
Fraud Strategy, Public Internal Financial Control and Financial Management and Control). 

In 2011, Croatia participated in the following EU Programmes: 'Seventh Research Framework 
Programme';  'Life-Long  Learning  Programme'  (LLP);  'Youth  in  Action  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';  Civil  Protection  Mechanism';  and  'ISA  Programme'  (Interoperability  Solutions  for 
European Public Administrations).  

In  2011,  Memoranda  of  Understanding  for  the  following  two  Programmes  were  also 

14 

 
 
concluded:  'Criminal  Justice  Programme'  and  'Civil  Justice  Programme'  (both  memoranda 
were concluded on 15 December 2011).  

IPA 2008 Component I 'Development of an effective system for fight against counterfeiting 
of banknotes and coins in Croatia', EUR 230 000.  

The  beneficiary  of  this  project  was  the  Croatian  National  Bank  in  co-operation  with  the 
Ministry of Interior's Police National Office for the Suppression of Corruption and Organised 
Crime. The project contributed to ensure the efficient functioning of the system for the fight 
against internationally organised crime in the area of counterfeiting of banknotes and coins in 
line with EU standards. The achieved results were further alignment of the legal framework 
and  further  enhancement  of  the  implementing  procedures.  In  addition,  methodological  tools 
were developed while the administrative capacity of the key stakeholders in the system was 
strengthened through training, workshops and study visits to Member States and the European 
Central Bank (ECB).  

IPA 2007 Component I 'Equipment for anti-smuggling units', EUR 3.45 million.  

This  project  supported  the  fight  against  national  and  international  organised  crime,  thus 
enhancing safety and security of Croatian and future EU external borders, internal market and 
collection of national and EU revenue. It provided equipment to the mobile customs units of 
the customs administration, such as vans, personal vehicles, all-terrain vehicles, vehicles for 
transport  of  official  dogs,  mobile  x-ray  vehicle,  patrol  sea  boats,  patrol  river  boats,  trace 
detectors, and contraband detectors. 

IPA 2007 Component I 'Customs Laboratory Development', EUR 500 000.  

This  project  contributed  to  maximise  the  collection  of  customs  duties  and  taxes  by 
establishing nature, tariff classification, origin and value of goods, and provided support for 
the  prevention  of  illegal  traffic  of  goods.  It  contributed  to  further  develop  the  operational 
capacity of the Croatian Customs Laboratory, in compliance with EU requirements, resulting 
in  an  improved  legal  basis,  management  policies,  analytical  equipment,  analytical  methods, 
training  programmes  and  working  methods.  In  terms  of  results,  a  Quality  Management 
System in Customs laboratories was introduced and Quality Handbook elaborated; laboratory 
methods  were  updated  in  compliance  with  EU  best  practice;  written  guidelines,  regarding 
laboratory  safety,  security  and  hygiene  procedures,  correct  sampling,  labelling,  packing  and 
despatching  of  the  samples,  were  developed  and  disseminated;  training  policies  were 
delivered;  and  a  plan  for  co-operation  with  EU  customs  laboratories  and/or  with  other 
analytical institution inside and outside the country were developed. 

IPA  2008  Component  I  'Strengthening  of  the  tax  Administration  in  the  fight  against 
corruption', EUR 207 000.  

This  Twinning  light  contributed  to  improving  the  legal  and  institutional  framework  for 

15 

 
 
efficient  and  systematic  combating  of  corruption,  and  the  public  awareness  on  the 
harmfulness of corruption, and to create conditions for preventing corruption in the Croatian 
Tax Administration. It therefore contributed to the protection of the interests of Croatian and 
EU citizens, taxpayers and businesses.  

3.5 Sector III: Environment and climate change 

In Croatia this sector is supported under the Environmental Operational Programme (EPOP) 
under  Component  III  and  it  addresses  priorities  such  as  municipal  solid  waste  (waste 
management  and  cultivation  of  non-compliant  landfills),  water  and  wastewater  (treatment 
plants and networks).  

IPA  2007  Component  I  'Identification  and  Setting-up  of  the  Marine  Part  of  Natura  2000 
Network in Croatia ', EUR 527 500.  

This  project  contributed  to  the  existing  draft  proposal  of  marine  NATURA  2000  by 
identifying potential NATURA 2000 sites. This list of sites was prepared through consultation 
with relevant stakeholders and the scientific community, with the purpose to further develop 
the  national  biodiversity  monitoring  and  reporting  system  through  capacity  building, 
according to the provisions of the Habitats Directive. 

IPA 2007 Component I 'Energy Administrative Data Management', EUR 1 095 000.  

This  project  focused  on  institutional  capacity  building  by  developing  a  methodology  for 
energy  administrative  data  management  related  to  EU  Regulations,  supplying  related 
hardware equipment to enable the stakeholders to report data, and developing new tailor-made 
software  for  web-based  energy  data  collection  and  management.  This  project  has  facilitated 
the transfer of experiences on energy statistics and international reporting. 

3.6 Sector IV: Transport  

The "Transportation" Operational Programme under IPA Component III continued to provide 
support for developing transport infrastructure in the area of railways and inland waterways in 
Croatia. Besides a series of technical assistance and project pipeline development operations 
in  the  rail  and  inland  waterways  sectors,  there  was  one  investment  project  under 
implementation  during  2011.  This  project  aims  the  development  of  the  signalling  and 
telecommunications infrastructure at the Zagreb main railway station. 

A  new  major  project  was  approved  by  the  Commission  during  2011:  Okučani  to  Novska 
Railway Rehabilitation and Upgrade. The total investment value is EUR 40 million, with IPA 
co-financing amounting to EUR 34 million.  

ISPA  'Vinkovci  to  State  Border  Railways  Rehabilitation',  EUR  60.2  million,  48%  of  which 

16 

 
 
was co-financed by the EU.  

This project contributed to the achievement of interoperability and safety requirements in line 
with  EU  acquis  through  civil  works,  electrification,  signalling  and  telecommunication.  It 
allowed the rehabilitation of 38 km of the double track railway line on the European Corridor 
X  (Project  of  European  Interest),  Section  Vinkovci  to  Tovarnik  (interface  with  Serbian 
railway line at Šid). 

PHARE  2006  'Supply  and  implementation  of  Vessel  Traffic  Monitoring  and  Information 
System (VTMIS)', EUR 5 million  

This  project  delivered  supply  and  support  to  the  implementation  of  the  Vessel  Traffic 
Monitoring  and  Information  System  (VTMIS),  particularly  radar  and  surveillance  and 
tracking systems, which will significantly contribute to the safety and pollution prevention in 
the  area  along  the  east  Adriatic  coast,  particularly  in  respect  of  ships  manoeuvring  in 
congested areas, ports and adjacent waters as well as non-SOLAS (International Convention 
for the Safety of Life at Sea) ships and yachts. Through this project, the VTMIS equipment 
has been installed at the national VTMIS control centre in Rijeka, and regional control centres 
in Split and Dubrovnik, and also 10 radar stations have been installed along the Adriatic coast 
and islands.   

3.7 Sector V: Private Sector Development 

The  IPA  Component  III  also  provided  support  to  private  sector  development  by  providing 
investment in business-related infrastructure located in less developed regions, as well as the 
improvement  of  business  climate,  the  technology  transfer  and  services  for  start-ups  and 
SMEs, and the first achievements already became visible on the ground.  

Six infrastructure projects were renovated or newly built to support the tourism and business-
related  activities  in  lagging-behind  regions.  10  newly-established  Business  Support  Centres 
started delivering training and services to SMEs in the e-commerce and e-business activities 
sector. 21 business centres are being coached and trained to deliver high-level consultancy & 
training  services  to  the  SMEs  throughout  Croatia.  A  certification  programme  is  being 
developed  to  attract  investors  at  will  assist  investors  in  eight  lagging-behind  counties.  New 
infrastructure  and  entrepreneurial  training  curricula  are  being  developed  in  five  universities 
and research centres in order to boost the technology transfer and commercialisation of public 
sector R&D.  

IPA  2007  Component  I  'Implementing  Croatian  Competition  and  State  Aid  Policies', 
EUR 1 million. 

This project contributed to ensure a more solid enforcement record of competition and state 
aid rules in Croatia and to set up a regulatory environment which is genuinely competition-
oriented.  The  project  achieved  the  following  results:  the  Croatian  competition  and  state  aid 
17 

 
 
legislation was further aligned with the relevant EU acquis; the Croatian Competition Agency 
(CCA)  further  strengthened  its  enforcement  record  and  its  ability  to  prosecute  the  most 
serious infringements of antitrust law; the CCA is ready to take up its responsibilities within 
the European Competition Network and has been granted observer status therein; a series of 
public  events  ensured  the  visibility  of  the  CCA  as  a  promoter  of  competition  culture  and 
established  its  advocacy  role  in  competition-relevant  regulatory  impact  assessment;  a 
smoother interplay of competition enforcement and regulatory intervention has been achieved 
by providing training to Croatian sectorial regulators and strengthening their co-operation ties 
with the CCA; the CCA successfully continued to enforce state aid legislation in light of EU 
state aid policy, with a view to achieving less and better targeted aid.  

3.8 Sector VI: Social development  

IPA  Component  IV  2007-2011 
EUR 5 million.  

'Regional  Network  of  Local  Learning  Institutions', 

This  project  contributed  to  the  modernisation  of  adult  education  in  Croatia.  There  were  56 
adult  education  institutions  which,  as  main  grant  beneficiaries  and  their  partners,  provided 
free  training  of  adult  learners  for  approximately  2,850  people.  Technical  assistance  focused 
on support to adult education institutions. Reports on learning needs analysis were prepared 
for each of 21 counties (NUTS 3 level) in Croatia. They provided up-to-date information on 
the  needs  of  employers  and  on  the  state  of  affairs  at  the  local  labour  markets  in  terms  of 
supply and demand. Those reports form a significant background document for future Calls 
for Proposals to be published by the national authorities in the field of adult education.   

IPA Component IV 2007-2011: 'Establishing Support in Social Integration and Employment 
of Disadvantaged and Marginalized Groups', EUR 90 008.  

This  grant  scheme,  as  part  of  the  'People  with  Disabilities  and  Support  System  Model  for 
Improving  their  Labour  Market  Approach'  project,  targeted  long-term  unemployed  people 
with  disabilities,  as  well  as  social  welfare  beneficiaries.  Activities  supporting  active 
participation on the labour market were delivered through career counselling, monitoring and 
occupational  rehabilitation.  Simultaneously,  through  motivational  training  and  psychosocial 
aid,  the  project  encouraged  the  strengthening  of  social  integration,  whereas  experimental 
workshops  and  a  round  table  encouraged  partnership  in  the  field  of  social  integration  and 
employment. 

IPA Component IV 2007-2011 'Local Partnerships for Employment – Phase', EUR 91 677. 

This grant scheme, as part of the 'Education and Networking – Opportunity for Employment' 
project,  targeted  unemployed  and  not  adequately  employed  highly  educated  people  from 
Osijek-Baranja  County.  They  have  been  provided  with  knowledge,  skills  and  practical 
experience  in  the  field  of  entrepreneurial  support  and  development  and  implementation  of 

18 

 
 
EU-funded  projects.  A  minimum  of  30  persons  attended  education  about  business 
counselling, business plan development and development and implementation of EU projects. 
With  the  help  of  trainers  from  the  Centre  for  Entrepreneurship  Osijek  and  Regional 
Development Agency of Slavonia and Baranja, each project team worked on development of 
concrete  project  proposal  for  current  call  for  proposals  under  EU  funds.  As  a  result,  the 
participants  gained  specific  knowledge  and  experience  which  will  provide  them  better 
opportunity for adequate employment. The project had a positive impact on strengthening the 
capacities  of 
the  development  and 
implementation of EU-funded projects. 

local  communities  and  organisations  regarding 

3.9 Sector VII: Agriculture and rural development  

IPA  2007  Component  I  'Capacity  Building  of  the  Croatian  Paying  Agency'  and  'Support  to 
establishment  of  fully  operational  Paying  Agency  in  line  with  EU  standards',  EUR  4.5 
million.  

In order for Croatia to use EU agricultural funds, a sophisticated administrative  and control 
system  meant  to  manage  the  EU-tax  payers'  money  needed  to  be  put  in  place.  These  two 
coordinated projects achieved this goal in cooperation with the Croatian Paying Agency. The 
first one, a Twinning project, involved 3 paying agencies from Austria, France and Slovakia 
and  worked  on  the  specifications  of  the  system.  The  second  one,  a  technical  assistance 
project, was led by a consortium of Croatian, Czech and Slovene IT companies and developed 
the  software  modules  needed  to  build  the  system.  Training  was  provided  to  the  staff  of  the 
Croatian  paying-agency  and  an  information  campaign  on  the  Common  Agriculture  Policy 
(CAP) was carried out throughout Croatia. Thanks to that support, Croatia tested the system 
under  its  national  budget  in  2011  and  2012  and  could  thus  familiarise  its  farmers  and  its 
administration with EU requirements prior to accession. 

IPA 2008 Component I 'Support to the Implementation of the Common Organization of the 
Agricultural Market', EUR 230 000.  

The  Common  Agricultural  Policy  (CAP)  includes  support  to  agricultural  markets  grouped 
under  the  so-called  Common  Market  Organisation.  Croatia  has  to  develop  the  various 
schemes foreseen by the EU legislation prior to its accession to the EU in order to be able to 
support its agricultural markets when required. This Twinning Light project supported Croatia 
to  set  up  the  systems  needed  to  administer  the  following  sectors:  sugar,  milk  and  milk 
products  outside  milk  quota,  beef  and  veal,  fruit  and  vegetables,  wine,  as  well  as  export 
refunds  for  processed  agricultural  products.  Under  the  leadership  of  the  French  Market  and 
Intervention  Agency,  a  unique  team  of  experts  from  four  different  Member  States  (France, 
Germany,  Hungary  and  Poland)  supported  and  trained  the  Croatian  Paying  Agency  to 
successfully develop the required procedures for each of the targeted sectors. 

19 

 
 
3.10 Cross-border cooperation 

In  2011  Croatia  continued  to  participate  in  cross-border  co-operation  projects  with  its 
neighbours in the Western Balkan area (Bosnia and Herzegovina, Montenegro and Serbia), as 
well  as  with  Member  States  (Hungary  and  Slovenia)  and  in  wider  regional  cooperation 
projects covering the Mediterranean or Adriatic basins.   

Cross-border  cooperation  projects  remain  an  important  aspect  of  IPA  assistance  in  the 
Western  Balkans  by  aiming  to  improve  the  quality  of  life  in  the  cross  border  areas  through 
joint  projects  in  the  areas  of  environment,  tourism  and  cultural  space,  and  private  sector 
development.  Furthermore,  these  efforts  are  an  important  contribution  to  achieving 
reconciliation following the 1990s conflicts.  

IPA  Component  II,  Cross-border  programme  between  Croatia  and  Bosnia  and  Herzegovina 
'VIOR - Vinkovci and Orašje Heritage Tourism Project', EUR 62 355.  

This project contributed to enhance tourism products – notably heritage tourism – to increase 
the  sector’s  GDP  contribution  and  create  income  in  the  Vinkovci  and  Orašje  regions.  It 
developed  joint  CBC  heritage  tourism  products  and  joint  tourist  itineraries  (packages),  built 
capacities in the fields of heritage tourism organization, hosting and preservation of heritage 
resources through education, training and know-how transfer, and promoted heritage sites and 
awareness  on  heritage  site  protection  with  use  of  today's  communication  tools.  The 
beneficiaries of this grant were the City of Vinkovci in Croatia and the Municipality of Orašje 
in Bosnia and Herzegovina, in partnership with the Tourist Board of City of Vinkovci and the 
Tourist Community of Posavina Canton. 

IPA Component II, Cross-Border Programme between Croatia and Montenegro, 'Traditional 
olive industry like a part of cross-border tourism offer', EUR 147 720.  

This  project  contributed  to  the  development  of  socio-economic  conditions  through 
diversification  of  the  tourism  offer  in  the  cross-border  region.  It  improved  the  quality  of 
tourist  destination  by  creating  cross-border  olive  tourism  offer  based  on  authentic  olive  oil 
production, tradition and culture. On the Croatian side, the beneficiaries of this grant were the 
Croatian Centre for Agriculture, Food and Rural Affairs and SNV- Netherlands Development 
Organisation,  in  partnership  with  Dubrovnik  Neretva  County’s  association  of  olive  oil 
producers  and  Dubrovnik  Neretva  County’s  Regional  Development  Agency.  The 
Montenegrin  partners  were  the  Municipality  of  Bar,  the  Association  of  olive  producers  Bar 
and the Association of olive producers, Boka.  

IPA Component II, Cross-Border Programme between Croatia and Serbia, 'Toward Recycling 
Societies in Osijek – Baranja County and North Bačka District', EUR 151 696.  

This  project  contributed  to  protecting  the  cross  -  border  environment  (air,  groundwater  and 
nature  areas)  of  Eastern  Croatia  and  North-Western  Serbia.  It  improved  the  waste 
20 

 
 
management  system  in  Osijek-Baranja  County  and  North  Bačka  District  through  mutual 
cooperation and exchange of experiences. The beneficiaries of this grant were Green Action - 
Friends of the Earth Croatia in Croatia, and Centre for Ecology and Sustainable Development 
(CEKOR)in  Serbia,  in  partnership  with  the  Croatian  Zeleni  Osijek  -  Ecological  Association 
Green Osijek. 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 

One of the main objectives of the IPA instrument is that, in addition to supporting the efforts 
of the country in the negotiation process, it also helps to prepare the country for managing the 
structural and cohesion and rural development funds which become available after accession. 
In  order  to  achieve  this,  the  full  potential  of  IPA  is  reached  when  the  beneficiary  country 
becomes fully responsible for managing the assistance it receives from the EU.  

Following  the  Commission  decisions  to  confer  the  management  of  the  IPA  funds  to  the 
Croatian  national  authorities  in  2008  and  2009,  Croatia  continued  to  implement  IPA 
programmes in 2011  on a  decentralised basis, with ex  ante controls by the European Union 
Delegation in Zagreb. 

Furthermore,  Croatia  moved  closer  in  2011  to  the  ultimate  objective  of  the  conferral  of 
management  process,  the  decentralised  implementation  without  ex  ante  controls  by  the 
Commission for IPA Components I to IV. Component V has operated directly without ex ante 
controls since the conferral of management decision in 2009. 

Under  Component  I,  Croatia  established  in  December  2009  a  roadmap  with  indicative 
benchmarks and time limits to achieve decentralisation without ex ante controls. In 2011, the 
Commission  continued  to  monitor  its  implementation  through  the  regular  reports  submitted 
by the Croatian authorities. The main indicators are the quality of procurement – expressed in 
the "rejection rate" of tendering and contracting files submitted by the authorities to the EU 
Delegation  in  the  context  of  its  ex  ante  control  -,  and  the  pace  of  implementation.  The  first 
indicator improved significantly in the course of 2011, especially in the second semester. The 
absorption capacity, however, remains a challenge for the Croatian authorities, as they need to 
catch  up  with  past  delays.  Nevertheless,  capacity  under  this  component  is  gradually 
increasing. The overall positive trend therefore needs to be sustained in 2012.  

Under Component II, the Commission's assessment on whether conditions for waiving ex ante 
controls  are  met,  will  focus  on  the  functioning  of  the  system  (given  the  low  number  of 
transactions  under  this  component  and  the  involvement  of  a  partner  country).  In  2011,  the 
Commission  conducted  a  follow-up  audit  on  the  conferral  of  management  powers  for  IPA 
Component II. The Croatian authorities have started to address the relevant findings.  

In  2011  the  Commission,  under  the  initiative  of  the  national  authorities,  carried  out  twelve 
meetings  of  the  sectorial  monitoring  sub-committees  (two  times  six  sectorial  meetings,  in 

21 

 
 
April and October) and two TAIB Sectorial Monitoring Committees, in June and December.  

Whereas  the  sectorial  monitoring  sub-committees  reviewed  the  progress  of  each  individual 
project,  the  interest  of  the  sectorial  monitoring  committees  was  to  explore  the  ways  to 
accelerate  the  implementation  of  projects  and  review  the  progress  in  the  implementation  of 
the roadmap for the waiver of ex ante controls. 

In parallel, the on-the spot visits to the projects being implemented have continued, and some 
of them have been carried out jointly with the implementing bodies. The EU Delegation thus 
had  the  opportunity  to  give  recommendations  which  do  not  deal  only  with  project 
implementation,  but  with  improving  the  monitoring  process  carried  out  by  the  national 
institutions. 

22 

 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Croatia 

Croatia 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

82,704,005 

82,584,944 

99.86% 

73,242,931 

88.56% 

IPA 2008 

183,318,922 

182,899,550 

99.77% 

114,461,570 

62.44% 

IPA 2009 

103,600,000 

64,472,406 

62.23% 

36,213,965 

34.96% 

IPA 2010 

72,100,000 

39,551,787 

54.86% 

15,620,838 

21.67% 

IPA 2011 

68,900,000 

4,200,000 

6.10% 

3,990,000 

5.79% 

Total 

510,622,927 

373,708,687 

73.19% 

243,529,303 

47.69% 

IPA – Component I National Programme Croatia 

Croatia 

 Allocated 

Contracted  % Contracted 

Paid 

% Paid 

IPA 2007 

42,302,572 

40,775,209 

96.39% 

33,309,085 

78.74% 

IPA 2008 

41,374,000 

34,257,159 

82.80% 

18,999,249 

45.92% 

IPA 2009 

44,601,430 

15,015,505 

33.67% 

8,945,672 

20.06% 

IPA 2010 

38,623,458 

10,576,022 

27.38% 

9,932,625 

25.72% 

IPA 2011 

39,159,128 

0 

0.00% 

0 

0.00% 

Total 

206,060,588 

100,623,895 48.83% 

71,186,631 

34.55% 

IPA – Component II (CBC) Programme Croatia 

Croatia 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

2,653,020 

1,536,854 

57.93% 

628,439 

23.69% 

23 

 
 
 
 
 
 
 
IPA 2008 

2,706,080 

2,410,832 

89.09% 

1,176,506 43.48% 

IPA 2009 

2,760,202 

472,357 

17.11% 

282,033 

10.22% 

IPA 2010 

2,200,000 

IPA 2011 

2,200,000 

0 

0 

0.00% 

0.00% 

0 

0 

0.00% 

0.00% 

Total 

12,519,302 

4,420,043 

35.31% 

2,086,977 16.67% 

24 

 
 
 
TURKEY 

1. SUMMARY 

In 2011, positive developments in the management of the financial assistance were observed 
in Turkey. The country is continuously improving the capacities of key institutions in charge 
of  programming,  implementation  and  monitoring  of  EU  funds.  The  implementation  of  IPA 
projects,  under  all  IPA  components,  is  now  well  underway  and  is  starting  to  show  a 
substantial impact as all necessary operating structures for the management of IPA funds are 
about to be granted conferral of management powers.  

Important reforms have improved the programming of funds, with the new MIPD 2011-2013 
adopted  in  June  2011  following  the  sector  approach  logic.  The  first  steps  towards  a  more 
strategic, focused and inclusive approach to programming has been taken while programming 
2011  funds  for  Transition  Assistance  and  Institution  Building  (Component  I)  focused  on  a 
limited number of sectors identified in the MIPD, with larger projects on the priorities of the 
accession process as well as aligned with sector priorities, for a total value of EU contribution 
of EUR 229.968 million.  Following the elections in June 2011, particular emphasis has been 
given to the justice, home affairs and fundamental rights sector priorities aiming to implement 
the  necessary  reforms  to  build  an  independent  and  efficient  judiciary,  law  enforcement 
services as well as developing civil society dialogue. 

Efforts  were  also  made  to  improve  the  monitoring  of  funds  by  reforming  the  monitoring 
system,  setting  out  the  roles  and  responsibilities  of  each  institution  and  the  various  tools 
available for this purpose as well as  strengthening the capacities of Turkish authorities.  

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document  

The  new  Multi-Annual  Indicative  Planning  Document  for  Turkey  covering  the  years  2011-
2013  was  adopted  on  28  June  2011.  The  MIPD  identifies  priorities  based  on  the  needs 
documented in the Accession Partnership of the country as well as the latest progress report 
and the Turkish authorities' 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  puts  the  stress  on  a  more  sector  based  approach  together  more 
ownership  towards  setting  priorities  for  assistance  as  it  was  drafted  based  on  the  priorities 
established by Turkish authorities. In order to support a more effective delivery of IPA and to 

25 

 
 
 
 
move  towards  a  more  sector  based  approach  with  more  focus  and  impact,  the  following 
strategic objectives for the new MIPD have been chosen. 

In  line  with  the  MIPD  sectors  and  identified  priorities  the  2011  IPA  funds  have  been 
programmed  mainly  supporting  projects  in    sectors  justice,  home  affairs  and  fundamental 
rights,  private  sector  development,  energy,  social  development  and  agriculture  and  rural 
development,  environment as well as horizontal support activities.   

The  selection  of  a  limited  number  of  sectors  in  the  MIPD  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 are 
closely explored in order to ensure that assistance provided is mutually reinforcing. This is the 
case, especially where strong ownership and political commitments are present. EU assistance 
provides  added  value  and  often  initiates  important  reform  processes  that  will  continue  in  a 
sustainable manner beyond the duration of the EU programmes. 

Table 1: MIFF8 allocations per component, in EUR million  

Component 

2011 

2012 

2013 

2011-2013 

I – Transition Assistance and Institution 
Building 

     231.26

227.49

246.20 

704.95

II – Cross-border cooperation 

5.13

2.17

2.21 

9.51

III – Regional Development 

293.40

356.83

378.00 

1028.23

IV – Human Resources Development 

77.60

83.93

96.00 

V – Rural Development 

172.50

189.78

213.00 

257.53

575.28

TOTAL 

2.2 Programming   

2.2.1 Component I    

779.90

860.22

935.50 

2575.62

In  order  not  to  delay  the  implementation  of  mature  projects,  it  was  decided  to  split  the 
national  programme  for  2011  into  two  parts.  The  IPA  2011  component  I  programme  part  1 
(adopted on 25 July 2011) includes 9 projects, which have been selected among the priorities 

8Communication  from  the  Commission  to  the  Council  and  the  European  Parliament  'Instrument  for  Pre-
Accession Assistance (IPA) Multi-Annual Indicative Financial Framework for 2011-2013', new MIFF (12.10.2011 
COM(2011) 641 final) 

26 

 
 
 
                                                            
identified in the 2011-2013 MIPD after analysis of the Turkish authorities and in consultation 
with the Commission under sector 1 – justice, home affairs and fundamental rights, 2 – acquis 
harmonisation  in  areas  of  transport  and  3  –  social  development.  Projects  under  above 
mentioned  sectors  were  selected  as  they  were  mature  for  implementation  and  are  of  high 
priority for Turkey. Additional sectors of the MIPD are supported under the IPA 2011 part 2 
programmes which have been adopted by the Commission on 25 July 2011. These are based 
on the second part of the priorities of the MIPD, national programme for 2011 and support 16 
projects  in  the  sectors  justice,  home  Affairs  and  fundamental  rights,  private  sector 
development,  energy,  social  development  and  agriculture  and  rural  development  as  well  as 
horizontal  support  activities.  In  addition,  in  the  sector  environment  and  climate  change,  a 
sector measure has been included in the programme which could be considered as a first step 
towards sector approach.  

While  programming  2011  IPA  funds  efforts  were  made  to  better  focus  projects  on  the 
political priorities of the accession process as well as on aligning them with sector priorities. 
The largest part of the budget has been programmed to support projects in the justice, home 
affairs  and  fundamental  rights  sector,  aiming  to  strengthen  effective  law  enforcement, 
successful  fight  against  crime  and  corruption  and  improved  integrated  border  management 
and  prevention  of  illegal  migration.  For  example  the  project  ''Protecting  victims  of  human 
trafficking''  (EUR  1.7  million)  aims  to  contribute  to  the  effective  implementation  of  the 
national strategy and policy on organized crime including trafficking of persons. A number of 
the projects included into 2011 programme are follow-up actions to previous projects, which 
allow  achieving  the  full  impact  in  the  concerned  area  over  a  multi-annual  basis,  where  an 
approach in stages was required due to the complexity of reforms.  

Besides  further  projects  in  other  priority  sectors,  the  National  Programme  part  2  also 
introduces the "Enhanced Support Activities to Strengthen the European Integration Process" 
(ESEI) a flexible facility to address gaps of a limited scope, identified in the implementation 
of  the  acquis.  Twinning  and  Technical  Assistance  projects  are  financed  and  mobilised  in  a 
rapid manner without having to undergo the full programming cycle. The facility is managed 
by the Turkish Ministry for EU Affairs (MEUA). 

All of the programme's projects have been designed to achieve concrete results and we expect 
them  to  make  a  significant  impact  in  bringing  forward  the  reform  efforts  of  Turkey  in  the 
concerned areas. 

There was 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 2011 the Commission and the EU 
Delegation  in  Ankara  conducted  several  coordination  meetings  on  the  coordination  of 
financial  cooperation  in  Turkey  also  following  evaluation  report  on  Mapping  of  European 
Commission,  IFI  &  Donor  Activity  in  Turkey  financed  by  the  EU  Funds.  Following  the 
recommendations provided in the report it has been proposed to Turkey to take a stronger lead 
in  donor  coordination  through  Ministry  of  EU  Affairs  (for  accession  related  donor 

27 

 
 
coordination)  and  the  Treasury/Ministry  of  Development  (for  investment  related  donor 
activity).  

In  terms  of  programming,  progress  could  be  noted  by  the  Commission  as  regard  further 
cooperation  with  IFIs,  in  particular  the  cooperation  with  the  World  Bank.  Under  2012  IPA 
Component  I  programme  Energy  project  is  being  developed  together  with  the  World  Bank, 
which will be implemented under joint management mode.  

The Commission and the World Bank will further coordinate their future strategies and their 
implementation in order to explore further areas where synergy and value added can be found 
through a joint approach.  

Table  2:  Indicative  financial  allocations  for  the  year  under  the  National  Programme,  per 
priority axis and per project, in EUR million  

Priority Sector  

Projects 

Sector: Justice, Home Affairs and Fundamental Rights  

2011 NP part 1 

TR2011/0324.01 Trafficking 

2011 NP part 1 

TR2011/0324.02 Civilian Oversight 

2011 NP part 1 

TR2011/0136.03 IDPs in Van 

2011 NP part 1 

TR2011/0136.04 Local planning 

2011 NP part 1 

TR2011/0136.05 Cultural heritage 

2011 NP part 1 

TR2011/0136.06 Students EU 

2011 NP part 1 

TR2011/0135.07 CS Development 

2011 NP part 2 

TR2011/0124.10 Demining 

2011 NP part 2 

TR2011/0124.11 Witness Protection II 

2011 NP part 2 

TR2011/0124.12 Forensic Capacity 

2011 NP part 2 

TR2011/0123.13    Data protection 

2011 NP part 2 

TR2011/0123.14 Ombudsman 

2011 NP part 2 

TR2011/0135.15      CS Dialogue IV 

2011 NP part 2 

TR2011/0135.16 Trade unions dialogue  

28 

Budget  

101.36

1.71

3.80

3.42

1.80

2.70

3.21

6.62

39.45

1.50

8.00

2.00

2.00

10.60

1.60

 
 
 
2011 NP part 2 

TR2011/0136.17 Jean Monnet 

Transport 

2011 NP part 1 

Maritime Strategy 

Social Development 

2011 NP part 1 

Union programmes 

2011 NP part 2 

TR2011/0319.22 ÇASGEM 

2011 NP part 2 

TR2011/0336.23 Sports inclusion 

2011 NP part 2 

TR2011/0328.24 Cancer 

Environment and Climate Change 

2011 NP part 2 

Environment and climate measure 

Private Sector Development 

2011 NP part 2 

TR2011/0318.18 Statistics 

2011 NP part 2 

TR2011/0465.19 TK participation 7 FwP 

Energy 

2011 NP part 2 

TR2011/0315.20 Energy efficiency 

Agriculture and rural development 

2011 NP part 2 

Training for MARA  

Support and other activities 

2011 NP part 2 

ESEI envelope 

14.75

1.84

1.84

63.07

56.27

2.25

1.80

2.75

25.18

25.18

15.35

5.35 

10.00

3.00

3.00

1.35

1.35

17.00

17.00

TOTAL 

229.95*

* The figure only concern National Programme 2011 and not include the amount allocated to 
the CSF 

29 

 
 
2.2.2 Component II  

On  17  July  2011  the  Commission  adopted  an  annual  programme  on  financing  the 
participation of Turkey in the ENPI Black Sea Basin programme9, worth EUR 3 million. To 
streamline implementation, for the last three years (2011–2013) of the programme, it has been 
decided  to  front  load  the  remaining  IPA  contribution  within  a  single  financing  decision  of 
EUR 3 million to be adopted in 2011. 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.  

2.2.3 Components III-V   

Component III and Component IV programmes were adopted in 2007 and 2008 covering the 
7 year programming period.  

As  concern  revision  of  Environment,  Regional  Competitiveness  and  Transport  operational 
programmes  (OPs) under IPA component III, in 2011 preparations were done  regarding  the 
distribution  of  the  total  allocation  and  the  project  pipeline.  In  the  transport  and  the 
environment  sector,  the  pipeline  is  continuous  while  in  the  regional  competitiveness  sector 
new operations needed to be identified in 2011. In 2011 there was an increased interest from 
the  Turkish  civil  society,  municipalities  and regions  regarding  projects  to  be  founded  under 
the regional competitiveness programme. The short listing of these projects was finalised by 
the end of 2011. 

In regard to the revision of Human Resources Development (HRD) OP under IPA component 
IV,  which  was  revised  in  2010,  the  related  Financing  Agreement  was  concluded  by  the 
Commission and by the Turkish authorities in December 2011. Furthermore and in line with 
the  recommendations  of  the  Commission  to  improve  the  involvement  of  NGOs  and  other 
stakeholders in the design of the operations, the Operating Structure (OS) started to organise 
consultation  meetings  for  the  new  operations  under  preparation.  The  OS  has  started  the 
revision  of  HRD  OP  for  years  2012-2013  by  organizing  workshops  involving  active 
participation of relevant stakeholders together with the EU Delegation. 

The  latter  has  also  intensified  its  dialogue  with  the  World  Bank  in  the  context  of  IPA 
Component IV. The World Bank is involved in the management meetings of an operation to 
improve  the  quality  of  the  public  employment  services  for  the  purposes  of  strengthening 
policy  dialogue  and  avoiding  duplications  between  the  operations  of  the  EU  and  the  Bank. 
Talks have also been initiated for possible cooperation under the same component of IPA for 
concrete operations. However this is still subject to agreement of the hierarchy as well as to 
the possible implementation modalities under IPA Component IV.  

9C(2010)7470 

30 

 
 
                                                            
As  regards  IPA  Component  V,  the  third  modification  of  the  IPA  rural  development 
programme (IPARD) was adopted  by  the Commission on 22 June 2011 following technical 
work  recommendations  started  in  2010.  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. 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 - Success stories 

IPA Component I, 2008 project “Promoting Gender Equality in Working Life", EUR 950 000 

The  Twinning  project  helped  to  the  Turkish  authorities  transpose  the  equal  opportunities 
acquis  and  has  delivered  positive  results.  The  Turkish,  German  and  Austrian  experts  have 
jointly scrutinised the labour and social security legislation to identify the gaps vis-à-vis the 
acquis, as well as from a gender mainstreaming perspective. As a first step, gender elements 
have been merged into the draft trade union legislation. The work of the project is critical for 
when  negotiations  on  Chapter  19  begin.  Furthermore  the  project  initiated  a  gender  equality 
award for the Turkish companies, which will be sustained by the Turkish authorities annually. 
This  should  intensify  the  debate  on  harmonisation  of  work  and  private  life  in  the  private 
sector. Overall the project had more favourable impact on men and women in Turkey in the 
medium term. It has also helped trigger further debate in the public administration concerning 
a fundamental EU principle.  

IPA Component I 2007 project ''Modernisation of the Turkish Customs  

Administration - IV'', EUR 3.145 million 

The  Project  financed  under  IPA  2007  programme  was  implemented  in  2011.  The  customs 
laboratory project aimed to modernize the Turkish Customs Administration for strengthening 
its position to fulfil the tasks and obligations of EU Member States by establishing effective 
classification systems for goods in order to improve trade facilitation in Turkey and enhance 
the capacity of Turkey to better compete on the international market. Under Twinning Light 
component, Turkish and Italian customs laboratory experts studied the management policies 
and working methods in consideration with the EU best practices and trainings were delivered 
on  certain  analyses  and  accreditation.  The  customs  administration  took  on  board  the  Italian 
experts'  recommendations  on  the  organisation  and  established  a  central  customs  laboratory 
department  to  coordinate  the  activities  of  regional  customs  laboratories.  Modern  laboratory 
equipment, specific to the needs of customs, was supplied and placed in use. This project has 
made  a  very  tangible  and  visible  impact  to  start  up  the  ISO  17025  accreditation  process  of 
Turkish customs laboratories.  

31 

 
 
IPA  Component  I  2008  project  “Strengthening 
EUR 5.5 million 

the  Court  Management  System” 

The latter is a follow-up of a project implemented from 2007 till 2009 which assisted Turkey 
in  re-designing  the  court  management  system  and  in  implementing  the  new  system  in  five 
pilot court houses: new positions of court managers and judicial assistants to free the judges 
and  prosecutors  from  the  administrative  tasks;  guidance  and  information  desks  set-up; 
brochures  and  guidebooks  for  the  public;  media  spokespersons  trained;  restricted  access  to 
certain areas in the pilot court houses. The success of this project led to full ownership of the 
second IPA 2008 project which started in September 2011. Not only high level support from 
the Ministry bureaucracy, (e.g. up to the unusual Undersecretary level participating to steering 
committee) but also from the High Council of Judges and Prosecutors and majority of the Bar 
Associations has been established during the implementation. Other court houses which were 
not selected as “pilots” are volunteering to take part in this project.  

IPA Component I 2007 project ''Training of Military Judges and Prosecutors''  

EUR 2 million 

The  project  aims  to  train  all  military  judges  and  prosecutors  (appr.350)  on  the  European 
Convention  on  Human  Rights  and  the  case  law  of  the  European  Court  of  Human  Rights 
(ECtHR).  The  project,  whose  beneficiary  is  the  Ministry  of  National  Defence,  is  being 
implemented  with  the  Council  of  Europe.  Implementation  started  in  November  2010  and 
gained momentum in 2011-12. The project will come to an end by October 2012. As a result of 
the training component a pool of 52 national trainers has been established. The translation of 
20  ECtHR  judgements  was  completed  and  they  were  put  on  the  intranet  web-site  of  the 
Ministry. The  analysis of military justice systems in other European countries and Turkey in 
light of the case law of the ECtHR was launched and two reports have been drafted as a result 
of the work conducted by the second working group. The findings and recommendation of the 
working  group  will  be  disseminated  at  the  final international  conference.  It  is  hoped  that  the 
increased institutional capacity will ultimately lead to a decrease in the number of cases against 
Turkey on the decisions given by the military judiciary. 

IPA Component I ''Post-earthquake Support to the Province of Van'' EUR 4 million 

Following  October  2011earthquake  in  the  Van  Province  (Erciş)  around  40,000  people  were 
homeless due to the considerable number of collapsed or damaged buildings. A direct grant of 
EUR  4  million  was  signed  with  Turkish  Red  Crescent  to  provide  temporary  housing  to  the 
earthquake  victims  in  the  province  of  Van.  The  installation  and  furnishing  of  950  housing 
units was completed in January 2012, accommodating 6,000 people rendered homeless after 
the earthquake. 

Under IPA Component III and IV: 

32 

 
 
A high number of relevant projects have been approved in 2011. Even if their implementation 
did not begin in 2011, 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).  During  the  second  half  of  2011,  the  Commission 
adopted 10 major projects and respective Bilateral Project Agreements were signed. In total, 
these signatures led to 12 major projects approved under this programme and ensured that the 
programme  during  2011  was  able  to  request  payments  exceeding  EUR  28.7  million.  In 
parallel,  work  continued  on  the  preparation  of  new  IPA  projects  to  further  strengthen  the 
pipeline.  

In  2011,  the  transport  sector  mirrored  considerable  success  as  two  major  railway  projects 
were contracted successfully and their implementation has started as well. These two railway 
projects  are  key  investments  under  the  Transport  Operational  Programme  (TROP),  which 
identifies  joint  policy  priorities  in  the  transport  sector  in  the  context  of  EU  accession.  The 
overall objective of the programme is to re-establish a reasonable balance between road and 
rail  transport  in  Turkey.  In  this  respect,  rail  lines  and  rail  connections  to  maritime 
infrastructure  have  been  given  priority  over  other  investments.  Under  TROP,  the  EU  is 
providing  a  EUR 600  million  grant  for  Turkey  to  support  the  modernisation  of  railway 
infrastructure and ports.  

The first major project that EU is financing is the last leg of the high speed railway between 
Ankara  and  Istanbul  by  providing  a  EUR  136  million  grant  complementing 
the 
EUR 1.45 billion  loan  by  the  European  Investment  Bank.  This  flagship  project  will  lead  to 
significant  time  gains  for  travellers.  It  will  also  support  economic  development,  improve 
quality of life and generate major environmental benefits. With the completion of the route, 
travel time between Ankara and Istanbul will be reduced to only three hours. The project is 
expected to generate more than EUR 3 billion of economic benefits for the Turkish economy. 
It will also greatly benefit the Turkish environment by encouraging car and airplane travellers 
to  use  trains,  thus  reducing  greenhouse  gas  emissions  and  increasing  environmental 
protection.  

The  second  major  project  is  the  modernization  of  the  Ankara-Karabük-Zonguldak  Railway 
Line with the largest contract ever funded in Turkey (EUR 188 million). This is the first major 
improvement of this north-south freight line since it was constructed in the early times of the 
Turkish Republic to serve the steel mills around Western Black Sea Coast. The EU provides a 
total amount of EUR 330 million for the project, including a loan by the European Investment 
Bank (EIB). The Irmak-Karabük-Zonguldak line in its history has played an important role in 
the  development  of  the  region  by  providing  effective  means  of  transportation  to  the  steel 
industry.  Modernization  of  the  line  will  thus increase competitiveness of the local economy 
and quality of life in the region.  

33 

 
 
Lastly in 2011, Filyos Port major project, which is a new planned port the end point of Irmak-
Karabük – Zonguldak rail line, has been submitted for IPA financing in March 2011 and its 
appraisal was finalised in July 2011.  

Under the Environment Operational Programme (EOP) of component III, implementation of 
the major project “Urdu Wastewater Treatment Plant” had started in the last quarter of 2011 
with  the  signature  of  one  service  and  one  works  contract.  Total  cost  of  the  project  is 
EUR 25 634 950 with a maximum EU contribution of EUR 19 226 213. The overall aim of 
the  project  is  to  achieve  a  high  level  of  environmental  protection  and  compliance  with  EU 
Directives  relevant  to  the  wastewater  sector.  More  specifically,  this  project  is  to  protect  the 
Black Sea from the negative effects of the raw wastewater discharge by establishing a sound 
wastewater  management  system  to  the  Municipality  of  Urdu  in  accordance  with  EU  and 
Turkish  Legislation.  Moreover,  the  treatment  will  enable  the  improvement  in  the  quality  of 
coastal  waters  in  Urdu,  such  that  the  coastal  sites  will  be  suitable  for  bathing.  The  project 
targets  to  develop  activities  in  the  tourism  and  fishery  sectors  and  reducing  negative  health 
effects  (water  borne  diseases)  imposed  by  the  present  situation.  The  project  will  also  cover 
leak  detection  surveys  and  rehabilitation  of  sewer  and  water  networks.  In  this  context,  the 
realization of the Urdu Wastewater Treatment Plant Project will be a major contribution to the 
improvement of the infrastructure for the protection of the environment, since it will improve 
the  wastewater  services  and  enhance  the  ecological  status  of  the  Black  Sea  which  is  at 
increasing  risk  of  eutrophication  and  has  been  considered  as  a  sensitive  area  with  specific 
attention given to the reductions of nitrogen and phosphorous loads. 

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 implemented in 2011: 

Promoting  Women's  Employment  Operation 
EUR 24 million): 

(completed 

in  2011,  approximately 

including 

A grant scheme supported under the operation with a total value of about EUR 24 million has 
improved women’s employability, supported women’s entrepreneurship and helped diminish 
cultural  and  other  obstacles  that  hinder  women’s  participation  in  the  labour  market  through 
131  projects  implemented  in  the  less  developed  regions  of  Turkey  by  NGOs,  education 
institutions,  professional  organisations,  social  partners  and  local  authorities.  A  variety  of 
actions 
food  processing, 
entrepreneurship,  information  technologies,  viniculture,  and  mosaics  design  have  been 
supported  throughout  the  implementation.  The  projects  have  not  only  increased  the 
employment  prospects  of  women,  but  also  led  to  social  empowerment  and  increased  the 
awareness  of  the  target  group  about  the  public  employment  services.  About  9 900  women 
have benefited from projects, completed in November 2011. The eventual job placement rate 
in the formal sector is around 20%, and is expected to increase.  

sector,  care 

services, 

fisheries 

tourism, 

the 

Promoting  Lifelong  Learning  Operation  (grant  component  completed  in  2011,  service 
component still on-going, approx. EUR 13 million):  

34 

 
 
The  objective  of  this  operation  was  to  promote  the  development  and  implementation  of 
coherent and comprehensive strategies for lifelong learning. In this context, the operation with 
a total value of approx. EUR 13 million has financed institutional capacity building activities 
as well as training activities in different formal and non-formal institutions on basic skills and 
further development of skills provided by different actors. In addition, the operation supported 
the National Qualification System and VOC-test Centres. The beneficiaries of this operation 
include teachers, students in VET (Vocational Education and Training) institutions, illiterate, 
low  skilled  and  unemployed  adults  particularly  women  as  well  as  formal  and  non-formal 
education providers. For instance, around 2,800 people have received a certificate after having 
followed  basic  skills  courses.  About  350  teachers  have  benefited  from  technical  trainings  in 
different  sectors.  23  occupational  standards  were  developed  by  VOC-Test  Centres  and 
endorsed by the Vocational Qualifications Authority. 

Increasing  Enrolment  Rates  Especially  for  Girls  Operation  (started  May  2011  and  will  end 
May 2013 - with a total value approximately EUR 4 million).  

The overall objective of the operation is enhancing investment in human capital by increasing 
the quality of education, improving the linkage between education and the labour market, and 
raising  enrolment  rates  at  all  levels  of  education,  especially  for  girls.  Under  the  operation, 
national awareness campaigns were initiated through the three-spot films produced featuring 
the president, the prime minister and the minister of education. The films are currently being 
broadcasted in two campaigns –the first more than 4000 times on TV within a single month 
with an overall target of 19 million viewers. Through social networks an increasing number of 
young  people  are  following  and  commenting  this  campaign  (Twitter  and  Facebook,  target  2 
million  people).  Approximately  200  trainers  have  been  trained  in  counselling  and 
psychological  guidance  of  students  targeting  the  students  at  risk  of  dropping  out.  Teacher 
training in counselling is on-going (the target is 1,500 teachers trained). Assessments, studies 
and field research plans are finalised and field research is stillon-going. Internal IT/web-based 
monitoring system is developed for the project and optional for wider use by the Ministry of 
National Education. Research-based action plans for further work on increasing enrolment and 
decreasing drop-out are being developed. They will be implemented and monitored in the 16 
pilot provinces during 2012. 

3.2 Overview of the implementation status of the different instruments and components  

3.2.1 Component I  

EU assistance implementation under IPA component I has advanced substantially compared 
to the last year and Turkey is positively making up for the back-log created in the initial years 
of  IPA.  The  financial  performance  has  been  positive  overall  in  2011  thanks  to  a  substantial 
effort and the good cooperation among different institution at the end of the year that resulted 
in contracting almost 90% of the NP 2007 part 1. 

35 

 
 
Due  to  the  reallocations  of  funds  under  the  2008  programme  and  extension  of  the  final 
contacting deadline the high risk of loss of funds was avoided in 2011. Nonetheless despite 
good  contracting  rates  of  2007  and  2008  funds  the  contracting  less  than  2009  and  2010 
programmes was facing huge delays. The lengthy preparation of the tender files and then of 
the evaluation process, explains the long time required to get to the contract signature.  

Payments  however  still  remain  low  due  to  the  fact  that  they  are  lagging  behind  contracting 
and  that  final  payments  are  only  made  on  average  several  months  after  contracts  are  fully 
implemented.  

3.2.2 Component III  

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). The Ministry of Environment and Urbanisation, responsible for 
the environment OP, and the Ministry of Science, Industry and Technology, in charge of the 
regional competitiveness OP, obtained their accreditation in 2011. This process was still on-
going  last  year  for  the  Ministry  of  Transport,  responsible  for  the  transport  OP.  Nonetheless 
there has been substantial progress in implementation of transport sector projects. A total of 9 
contracts have been signed with a total value of EUR 390 million. A total of 4 new projects 
were programmes in civil aviation, maritime and land transport fields. Absorption rate is high 
and the outlook for 2012 is even better. The only possible risk area is the programming where 
efforts need to be renewed in establishing a project pipeline.  EU contribution to the twelve 
projects approved in 2011 is EUR 84 million. In total, ten tenders were launched; 6 contracts 
were  signed  (EU  contribution  is  EUR  22  million),  hence  increasing  the  contracting  rate  to 
17.25 %. 

Progress  in  programming  exercise,  which  remained  to  date  at  65%,  did  not  reach  to  the 
expected  level  in  2011  since  the  staff  of  the  Ministry  of  Science,  Industry  and  Technology 
concentrated more on the accreditation process of their finance and contracts department.  It 
should be  noted  that if the whole  programming exercise cannot be completed by mid-2012, 
there is a risk of de-commitments starting in 2012.  

The EU Delegation provided regular on-the job training / support to the staff of the Ministry 
in order to accelerate the programming exercise and to ensure a smooth transition period for 
taking over the procurement responsibilities form the CFCU.  

Under the environment OP, Turkey submitted 1 new major project (MP) applications and 10 
revised  MP  applications  in  2011.  The  Commission  approved  10  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 393 million. As 
regards the transport OP one major project was submitted and one MP was approved in 2011. 
For the regional competitiveness OP, one MP was re-appraised by the Commission, however 
36 

 
 
due  to  the  low  quality  of  the  supporting  documents  it  was  sent  back  again  for  further 
clarification and revision. 

3.2.3 Component IV  

Progress is on-going concerning the Human Resources Development Operational Programme 
- IPA Component IV. A total of 16 contracts, 5 service and11 supply contracts were signed in 
2011  with  a  total  budget  of  EUR  17.8  million.  The  total  contracted  amount  since  the 
beginning of the programme reached EUR 111 million (IPA share: EUR 94.3 million). This 
represents 60% contracting rate for the IPA funds allocated to the first period of the HRD OP 
covering  2007-2009  (EUR  158.7  million).  The  disbursement  rate  has  shown  a  significant 
increase  and  reached  35%.  In  2011  more  than  400  grant  projects  finished  implementation 
under the operations concerning the promotion of women's employment, youth employment, 
registered  employment  and  increasing  enrolment  rates  especially  for  girls.  New  operations 
were  identified  by  the  Ministry  of  Labour  and  Social  Security  for  improving  the  quality  of 
VET and increasing the adaptability of employers and employees in the tourism sector.  

3.2.4 Component V 

Major progress was achieved for IPA Component V, when the implementation of Component 
V  started  in  the  second  half  2011  following  a  conferral  of  management  for  implementation 
granted  by  the  Commission  on  29  August  2011.  A  first  set  of  three  calls  for  proposals  was 
organised in 2011 for which some 250 applications were received. Before the end of the year, 
the first four contracts were signed with beneficiaries under the first call and the assessment 
and contracting of projects from the second and third call will continue in 2012. Complicated 
application  procedures,  a  lack  of  guidance  for  potential  beneficiaries  and  overlap  with 
national  rural  development  measures  are  considered  as  major  obstacles  to  implementation. 
The Turkish authorities have been requested to set up an Action Plan to address these issues.  
Under  the  on-going  Twinning  Light  project  "Capacity  Building  for  Extension/Advisory 
Services  for  IPARD"  (SEI  2008,  EUR  250  000)  training  is  being  provided  to  400  advisors, 
helping  to  improve  the  availability  of  guidance.    Measures  are  also  underway  for    the 
implementation  of  the  second  phase  of  the  Programme,  including  a  further  22  provincial 
offices and three additional measures (agro-environment, LEADER and technical assistance). 

3.3 Sector I: Public Administration Reform  

In the MIPD 2011-2013, Public Administration Reform (PAR) is addressed under the sector 
of  "Justice,  Home  Affairs  and  Fundamental  Rights"  where  one  of  the  sector  objectives  is 
"Effective  implementation  of  the  legislation  regarding  the  reform  and  restructuring  of  the 
central  public  administration  and  transferring  authority  to  the  local  and  provincial 
administrations;  reduced  bureaucracy,  strengthened  policy  making  systems  and  sustainable 
37 

 
 
development  of  a  professional,  accountable,  transparent  and  merit-based  civil  service; 
parliamentary  and  civilian  oversight  mechanism  over  security  sector  secured;  oversight, 
control and participatory mechanisms supported including strengthened external and internal 
audit functions and establishing an independent data protection system". 

Within  this  framework,  the  project  "Further  Support  to  the  Local  Administration  Reform  in 
Turkey  (IPA  2007-  EUR  4  million)"  which  was  managed  by  the  UNDP  (as  a  direct  grant 
recipient), the Ministry of Interior and the Turkish Union of Municipalities (co-beneficiaries) 
was successfully completed in December 2011. The project aimed to develop and strengthen 
the administrative capacity and co-operation of Turkish Ministry of Interior (particularly the 
General Directorate for Local Authorities, Governorships and District Governorships), Unions 
of  Local  Authorities  and  local  authorities  themselves  in  the  task  of  ensuring  the  effective 
implementation of new policy and legislation on local administration. 

Project  "Decision  making  and  Performance  Management  in  Public  finance"  (IPA  2008  – 
EUR 2.176 million)  is  on-going  with  the  aim  of  strengthening  financial  decision  making, 
strategic planning and performance management capacity of strategy development units in the 
Ministry of Finance, Prime Ministry, Undersecretaries of the State Planning Organization, and 
Undersecretaries  of  Treasury.  Through  the  Twinning  contract  with  Finnish  experts,  the  aim 
was  to  provide  training  and  preparation  of  a  draft  legislation  harmonised  with  EU  best 
practices. 

Project "Improving Data Quality in Public Accounts" (IPA 2008 - EUR 1.721 million) is on-
going with the aim of developing and piloting a public accounting system and to improve the 
quality  of  government  financial  statistics  by  means  of  different  training  and  best  practice 
exchange activities.  

In  2011,  SIGMA  carried  out  regular  annual  assessment  missions.  The  Regional  Conference 
on Public Procurement was organised in Turkey in March 2011. The SIGMA-instrument also 
delivered  a  number  of  public  procurement-specific  seminars  to  the  Turkish  officials, 
particularly a key seminar organised on external and internal audit in October 2011. 

Twinning:  

In  Turkey,  one  of  the  main  challenges  is  the  need  to  strengthen  their  administrative  and 
judicial capacity to implement and enforce the acquis. Under IPA, the Commission continued 
to mobilise significant human and financial resources to help Turkish public administrations 
with this process, using the mechanism of Twinning administrations and agencies. 

In 2011, 13 Twinning contracts have been signed with Member states (Finland, Italy, France, 
Greece, Germany etc.) in the area of improving skills of forensic experts, modernisation of the 
Turkish customs administration, strengthening the capacities of civil enforcement offices etc.  

In  total,  84  out  of  117  projects  initiated  over  the  period  2002-2010  have  been  implemented 
and  completed  in  2011.  Twinning  continues  to  be  an  important  element  for  further 

38 

 
 
implementation. Through the so-called Twinning Review Mission tool, in a form of a TAIEX 
mission, the sustainability of Twinning projects is reviewed once a year. 

TAIEX:  

Partner administrations benefit from TAIEX’s flexibility to help meet wider training needs on 
EU legislation by reaching a significant number of officials, especially in the fields of heavy 
acquis chapters such as agriculture, environment and justice and home affairs. 

During 2011, more than 60 workshops and expert missions took place in Turkey in addition to 
many Turkish officials who took part in numerous study  visits and multicounty seminars in 
various European countries.  

Two examples in order to better illustrate these activities: 

A workshop on Chemical Safety Assessment was held in İstanbul on 5-6 October 2011 with 
broad  participation  by  different  ministries,  associations,  unions  and  manufacturers.  The 
participants had different levels of background knowledge and experience. At the end of the 
workshop,  their  knowledge  on  chemical  safety  assessment  under  Registration,  Evaluation, 
Authorisation and Restriction of Chemicals (REACH) regulation was improved. 

Another example is the workshop on Irregular Migration held in Ankara in December 2011. 
Around  60  people  from  various  ministries,  institutions  and  provinces  participated  in  the 
workshop.  In  the  workshop  many  topics  were  discussed  regarding  irregular  migration  and 
cooperation  between  Turkey  and  EU  in  the  field  of  combating  irregular  migration.  It  was 
considered very beneficial, especially for the Asylum and Migration Bureau of the Ministry of 
Interior. 

3.4 Sector II Justice, Home Affairs and Fundamental Rights  

One  of  the  objectives  set  in  the  MIPD  2011-20213  under  the  justice,  home  affairs  and 
fundamental  rights  sector  is  to  implement  the  necessary  reforms  to  build  an  independent, 
impartial and efficient judiciary. The second objective is to foster effective law enforcement, 
successful  fight  against  crime  and  corruption  and  improved  integrated  border  management 
and  prevention  of  illegal  migration.  The  third  objective  is  to  achieve  measurable  progress 
towards the full enjoyment of all fundamental rights and freedoms by all individuals without 
discrimination.  The  fourth  objective  is  to  set  up  strong  democratic  institutions  and  civil 
society  promoting  pluralism  and  the  values  of  European  integration.  Several  IPA  projects 
have contributed to these objectives during 2011. 

Under  the  first  MIPD  sector  objective,  ‘Enhancing  the  Role  of  the  Supreme  Judicial 
Authorities  in  respect  of  European  standards’  (IPA  2008  –  EUR  3  million)  project  was  on-
going which was designed to enhance the respective roles of the High Council of Judges and 
Prosecutors  and  of  the  higher  courts  (Constitutional  Court,  Court  of  Cassation  and  State 
Council) as the superior judicial authorities in the accession process and in the adoption of the 
39 

 
 
European  high  judicial  standards.  It  aims  to  enhance  the  commitment  level  of  the  Turkish 
Superior Judiciary to the EU accession criteria by raising the awareness of the leading judicial 
actors  and  establishing  stronger  relations  with  the  EU  and  with  its  member  states’  judicial 
institutions  with  a  view  to  benefiting  from  their  experience  in  the  harmonisation  of 
legislations and judicial practices 

In  the  penitentiary  field  ‘Dissemination  of  Model  Prison  Practices  and  Promotion  of  the 
Prison Reform in Turkey’ (IPA 2007 – EUR 7.2 million) project is still on-going with the aim 
of  supporting  the  improvement  of  the  penitentiary  system  in  Turkey  in  line  with  European 
Prison Rules and international standards. 

The  Twinning  Project  "Implementation  Capacity  of  the  Turkish  Police  to  prevent 
disproportionate  use  of  force"  (IPA  2008,  EUR  1.9  million)  had  a  very  dynamic  start  in 
September 2011 and implementation of activities is in full swing. The Turkish National Police 
shows particular interest in and strong ownership of this project. The Minister of Interior has 
participated  in  the  opening  ceremony  and  the  Twinning  partners  from  the  German  and 
Austrian  Police  have  expressed  great  satisfaction  with  the  open  and  cooperative  attitude  of 
their Turkish counterparts. 

The project "Justice for Children" (IPA 2010, EUR 3.15 million) is implemented via a direct 
grant  agreement  with  the  United  Nations  Children  Fund  (UNICEF).  It  aims  to  make  a 
contribution  towards  humanisation  of  the  juvenile  justice  system  in  Turkey  via  the 
introduction of child and youth friendly methods of dealing with offences against the law. The 
project  started  in  February  2012  with  the  participation  of  the  Minister  of  Justice  and  the 
Minister  of  Family  and  Social  Policies.  Furthermore,  several  other  institutions  are  actively 
participating  in  the  project,  namely  the  High  Council  of  Judges  and  Prosecutors  and  the 
Justice Academy. 

The  project  "Democratic  Citizenship  and  Human  Rights  Education"  (IPA  2009, 
EUR 9.1 million) is  managed  by  the  Ministry  of National Education  and  implemented via a 
direct  agreement  with  the  Council  of  Europe.  This  project  has  begun  with  its  first  activities 
back  in  2001.  The  purpose  of  the  project  is  to  increase  the  institutional  capacity  of  the 
Ministry of National Education on democratic citizenship and human rights education through 
developing and revising regulations and curricula on democratic citizenship and human rights 
education;  producing  educational  materials  and  increasing  the  capacity  and  awareness  on 
democratic  citizenship  and  human  rights  education  from  pre-school,  primary  and  secondary 
school  communities  (teachers,  pupils,  students,  non-teaching  staff,  parents  and  community 
leaders).  

3.5 Sector III Private Sector Development  

The  MIPD  2011-2013  for  Turkey  under  Private  sector  development  envisages  support  to 
increase  employment,  productivity  and  export  of  goods  and  services,  particularly  in  the 

40 

 
 
regions  where  employment  and  business  stocks  are  low.  In  this  framework  the  following 
activities are being implemented: 

There  has  been  significant  progress  regarding  the  facilitation  of  access  to  finance 
opportunities  for  SMEs.  The  Greater  Anatolia  Guarantee  Facility  (GAGF),  a  financial 
instrument designed and implemented by the European Investment Bank Group (EIB Group) 
for  the  benefit  of  SMEs  operating  in  Turkey,  has  become  fully  operational  in  2011.  With  a 
project  budget  of  EUR  32  million,  complemented  by  an  EIB  loan  programme  of  EUR  250 
million,  the  project  provides  loans  to  SMEs  through  Akbank,  Yapı  Kredi,  Vakıfbank  and 
Halkbank and micro-credits through Kredi Garanti Fonu.  

Another  project  is  the  G43  Venture  Capital  Fund  also  launched  during  2011  which  should 
establish a venture capital fund targeting the least developed regions of Turkey. The project 
(EUR 16 million) is expected to become fully operational in early 2012.  

Lending  activities  accelerated  under  the  Crisis  Response  Package,  where  the  Commission 
mobilized  some  EUR  470  million  through  the  European  Investment  Bank  (EIB)  and  the 
European  Bank  for  Reconstruction  and  Development  (EBRD)  in  late-2010.  Thanks  to  this 
programme,  small  businesses  started  to  receiving  loans  from  local  banks  to  meet  their 
working capital and investment needs, including investments for energy efficiency.  

Lending activities under the Small Enterprises Loan Programme (SELP-II), a lending facility 
implemented by German Development Bank KfW in association with the Council of Europe 
Development Bank (CEB), remained active during 2011.  

Under  the  2011  ESEI  portfolio,  a  project  regarding  the  information  society  and  the 
telecommunications sector was initiated - “Technical assistance for achieving the information 
society and stimulating high-speed broadband services to the benefit of consumers". The main 
objective of the project is to support the creation of multi-service, high-speed, country-wide 
Next  Generation  Networks 
in  electronic 
communication sector, in order to spread out high-speed broadband services to consumers at 
affordable prices. 

(NGN)  and  enhance  consumer  welfare 

3.6 Sector IV: Environment and climate change 

Environment  and  climate  change  continued  to  be  one  of  the  highest  priorities  under  MIPD 
and IPA I. EU support has been increasing over the years in line with the MIPD horizontal 
priorities on environment, nature protection and climate change. A national Climate Change 
Strategy  and  a  National  Climate  Change  adaptation  plan  have  been  adopted  by  the  Turkish 
Authorities in line with the MIPD priorities.  

Environment  and  Climate  Change  projects  portfolio  has  a  wide  range  of  environment  and 
climate related projects including environmental investments reaching up to EUR 720 million 
active  project  assessments,  including  all  available  pre-accession  instruments.  Under 

41 

 
 
Component  I  and  III,  179  contracts  are  active  in  different  implementation  stages  The  OP 
Environment is the most significant result of pre-accession assistance programme.  

Started  in  in  2011,  the  Control  of  Volatile  Organic  Compound  (VOC)  emissions''  project, 
worth EUR 2.6 million, is meant to improve environmental quality in Turkey and to reduce or 
prevent the potential risks to human health and to prevent ground level ozone pollution. The 
project  focuses  on  the  development  of  administrative  and  legal  conditions  and  structures 
meant  to  harmonise  and  implement  the  three  EU  Volatile  Organic  Compound  Directives 
(Storage-94/63/EC, Solvents-99/13/EC, and Paints-2004/42/EC). 

Another project started in 2011 is 'Improving Emissions Control'' worth EUR 2 million on the 
establishment  of  the  necessary  capacity  to  transpose  and  implement  National  Emission 
Ceilings  Directive  (2001/81/EC)  in  Turkey.  The  main  focus  is  based  on  a  legal  gap 
assessment,  the  preparation  of  draft  legislation  for  the  National  emission  inventory  and 
emission projections with various scenarios for four pollutants (SO2, NOx, VOC and NH3). 

The  regulatory  impact  assessments  for  the  implementation  of  different  national  emission 
ceilings  and  an  agreed  long-term  comprehensive  strategy  are  destined  to  improve  the  air 
quality from pollutants defined in NEC Directive. 

3.5 Sector V: Transport  

The transport sector priorities in the MIPD 2011-2013 originate from the technical assistance 
studies that are prepared, with EU financing, for each transport sub-sector. There is an almost 
complete  convergence  between  national  strategies  and  EU  pre-accession  strategies  with  an 
outlook  towards  2015.  The  priority  areas  are  carefully  selected  and  project  pipelines  are 
prepared to achieve the strategic priorities.  

Transport  is  a  sector  where  donor  coordination  is  necessary  and  very  real,  especially  on 
railways. The EU Delegation is in close contact with the EBRD, the EIB and the World Bank 
on  infrastructure  and  acquis  related  issues  in  the  transport  sector.  The  World  Bank  is 
cooperating  with  the  EU  Delegation  on  reform  issues  and  the  EIB  is  very  active  in  co-
financing infrastructure investments that are prepared by EU funding.  

A  number  of  projects  were  ongoing  in  the  transport  sector  in  2011,  mainly  dealing  with 
building  technical  capacity  for  Turkish  institutions  to  take  on  responsibility  for  acquis 
implementation. A good example is the project on 'The Reform of Turkish Railways project' 
(IPA 2007, EUR 3.6 million) which aims to prepare a strategy and action plan for establishing 
framework  conditions  of  restructuring  and  strengthening  of  Turkish  rail  sector.  The  main 
elements are a system for infrastructure capacity allocation and charging, a network statement 
as  well  as  safety  management  systems  (SMSs)  of  Business  Units  (BUs).  The  project 
implementation  is  becoming  a  success  story  in  particular  for  the  second  and  the  third 
component.  The  strategy  component  is  still  under  development  given  huge  political  boost 
after the major re-structuring of the Ministry of Transport in late 2011. After the approval, a 

42 

 
 
wide array of other rail sector areas will be supported from the EU and eventually EU players 
will be able to find the same safety, security and market conditions in Turkey in railways.   

3.8 Sector VI: Energy 

The energy sector is defined as a priority sector under MIPD document (2011-2013). Within 
this context, three main objectives are described; the first objective is increased capacity and 
better alignment in the energy efficiency field. The second objective is further alignment with 
and implementation of acquis on the internal gas and electricity market. The third objective is 
to bring nuclear safety in line with EU standards. The selected objectives are key priorities for 
Turkey,  derived  from  the  NPAA  and  DP  and  the  strategies  of  the  relevant  laws  concerning 
energy  efficiency  and  the  electricity  market.  In  addition  the  types  of  indicators  to  measure 
developments towards these objectives are the followings: 

•  Promoted energy efficiency and renewable energies. 
•  Targeted activities to support the implementation of the acquis on the internal gas and 

electricity market cross-border exchanges in electricity and gas transmission. 

•  Supported nuclear safety, in particular through the safe management of spent fuel and 

radioactive waste. 

Within  this  framework,  one  of  the  main  targets  foreseen  under  the  second  bullet  was 
successfully achieved with the positive results of the 2007 project TR0702.05 “Rehabilitation 
of the Frequency Control Performance of Turkish Power System for Synchronous Operation 
with  European  Network  of  Transmission  System  Operators  for  Electricity  (ENTSO-E), 
[former  UCTE],  Project  in  Turkey".  The  latter  has  significantly  contributed  to  the 
interconnection of the Turkish electricity grid with the European electricity grid.  

In  addition,  several  contributions  have  been  provided  in  improving  the  "Improving  Energy 
Efficiency in Buildings (IEEB)" project fiche under the 2011 portfolio. The main objective is to 
improve  energy  efficiency  in  buildings  through  better  design  of  new  buildings  and  retrofit  of 
the existing ones.  

A  framework  project  “Technical  Assistance  for  Strengthening  the  Institutional  Capacity  of 
Iller  Bank  on  the  Direct  Utilisation  of  Geothermal  Energy”  was  also  successfully 
implemented in line with the MIPD energy related priorities particularly on the promotion of 
the renewable energy sources.  

3.9 Sector VII: Social development 

The first objective of this sector is an effective implementation of the European Social Fund 
(ESF)  and  bringing  Turkey  closer  to  the  EU  policies  and  parameters  of  the  Europe  2020 
strategy,  both  in  terms  of  strengthening  employment  and  human  resources  development  as 
well  as  building  institutional  and  administrative  capacity.  Concerning  employment  related 

43 

 
 
 
targets, operations such as Promoting Women's Employment, Promoting Youth Employment 
(PYE) and Promoting Registered Employment (PRE) and Improving the Quality of the Public 
Employment  Services  (PES)  were  implemented  during  2011.  Operations  on  Promoting 
Lifelong  Learning  (LLL)  and  Increasing  School  Enrolments  Rates  of  Girls  (ISERG)  were 
implemented under education priority axis.  

IPA Component I 2007 project "Improvement of Occupational Health and Safety Conditions 
at  Workplaces  in  Turkey"  (EUR  3.932  million)  has  assisted  the  Turkish  government  to 
upgrade OHS related recording system and to promote OHS culture among workplaces with 
specific  focus  on  mining,  construction  and  metal  industries  –  that  has  high  risk  of 
occupational accidents and diseases. A long awaited national OHS recording system has been 
developed, expected to be operational in 2012. 

IPA Component I 2007 project "Development of Regional Laboratories of the Occupational 
Health  and  Safety  Centre"  has  helped  enterprises,  especially  SMEs,  apply  effectively  and 
efficiently  the  harmonized  Occupational  Health  and  Safety  (OHS)  legislation.  ISGUM 
(Occupational Health and Safety Centre) staff has received substantial training on laboratory 
techniques. At the end of the project ISGUM will be able to conduct measurements for lead in 
air and noise parameters in line with internationally recognised standards. 

IPA  Component  I  2007  ''Strengthening  Vocational  Qualifications  Authority  (VQA)  and 
National  Qualifications  System  project''  have  started  in  October  2010  supporting  the  VQA 
and  Occupational  Standards  Development,  Vocational  Knowledge  and  Skills  Testing  and 
Certification  Centres  (VOC-TEST)  to  establish  and  initiate  an  efficient  and  sustainable 
National  Qualifications  System  based  on  agreed  occupational  standards  with  an  appropriate 
system  for  assessment,  grading  and  certification  at  all  levels  in  line  with  European 
Qualifications  Framework.  Project  activities  are  concentrated  in  the  industrial  regions  of 
Turkey, focusing on priority commercial / industrial sectors. 

3.10 Sector VIII: Agriculture and rural development  

MIPD 2011-2013 sets out three main objectives for agriculture and rural development sector. 
The first objective is to facilitate the preparation of Turkey for the future implementation of 
the  Common  Agricultural  Policy  (CAP)  and  related  policies  respecting  the  relevant  EU 
standards  and  thereby  ensuring  a  smooth  integration  into  the  Single  Market,  which  will  be 
achieved  by  assisting  Turkey  with  getting  ready  to  effectively  implement  EU  rural 
development  programmes  as  well  as  other  CAP  related  expenditures  upon  accession, 
including the setting-up of systems for management and control of financial expenditures and 
agricultural information systems. The second objective is the alignment with the acquis in the 
area  of  food  safety,  veterinary  and  phytosanitary  policy.  The  third  objective  is  the 
restructuring of the administrative system for fisheries required for the adoption of the acquis 
for  fisheries  resource  management,  including  the  strengthening  of  resource  and  fleet 
management  as  well  as  the  fisheries  inspection  and  control  services,  producer  organisations 

44 

 
 
and an integrated approach to sea-related activities.”  In this framework the following projects 
are particularly successful: 

The  current  projects  "Technical  Assistance  and  Data  Collection  for  Strengthening  the 
Statistical Capacity of MFAL" (IPA, 2007, EUR 1.15 million) and "Extending the Pilot Farm 
Accountancy Data Network Project and Ensure Sustainability" (IPA 2009, EUR 1.45 million) 
are helping to improve the capacity of the Ministry of Food Agriculture and Livestock in the 
collection of agricultural statistics and farm level accounts respectively. 

for 

implementation  of  LEADER  measure  under 

The projects "Environment and countryside under IPARD"(IPA 2009, EUR 1.14 million) and 
"Support 
(SEI  2007, 
EUR 0.25 million)  were  both  completed  in  2011.  They  helped  to  develop  the  institutional 
capacity  for  implementation  of  pilot  agro-environmental  and  community  development 
measures respectively under the second phase of the IPARD programme. 

IPARD" 

The  project  "Plant  Passport  System  and  Registration  of  Operators"(IPA  2007, 
EUR 1.14 million) which was completed in 2011 helped Turkey establish the plant passport 
system and its implementation in Turkey.  

The  project  “Introduction  of  Stock  Assessment  to  the  Fisheries  Management  System  of 
Turkey” (IPA 2007, EUR 2.2 million) which was completed in 2011, contributed to capacity 
building  in  the  field  of  stock  assessment  and  fisheries  management.  It  would  help  to  reach 
objective of integrated and sustainable fisheries management with the implementation of action 
plans and road map developed by the project.  

3.11  Cross-border  cooperation  (ENPI  Black  Sea  basin  programme  and  Turkey-Bulgaria 
programme) 

In 2011, the implementation of the ENPI programme for the Black Sea basin was on-going. A 
number  of  projects  contracted  under  the  first  call  for  proposals  have  started  the 
implementation of the activities. The second call for proposals was launched in 2011 and the 
evaluation process is still on-going.  

As  concerns  the  implementation  of  the  Turkey-Bulgaria  CBC  programme,  the  first  call  for 
proposals  was  finalised  and  grant  contracts  concluded  in  2011.  Those  projects  were 
contributing to boost sustainable economic development in the co-operation area and build on 
the  comparative  advantages,  to  improve  overall  social  development  and  promote  social 
cohesion among people and communities and to improve quality of life through the efficient 
use  of  shared  natural  resources  as  well  as  the  protection  of  natural,  cultural  and  historical 
heritage sites. 

The evaluation process of the applications under the second call for proposals is on-going.  

45 

 
 
4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 

In  2011  the  national  authorities  of  Turkey  progressed  substantially  with  the  preparation  for 
conferral of management for IPA components III, IV and V.  

Progress  has  been  made  also  made  concerning  the  conditions  attached  to  the  conferral  of 
management decisions under IPA Component I. Upon request by the Commission significant 
steps  have  been  taken  by  the  Turkish  authorities  with  a  view  to  set  a  comprehensive  action 
plan  aiming  at  remedying  shortcomings  (related  to  the  supervisory  function  of  the  NAO, 
staffing and monitoring by the national authorities as well as legal bases and procedures) that 
have  been  identified  in  the  management  and  control  systems  for  IPA  component  I.  The  
established comprehensive action plan was an important step forward towards improvements 
of  management  and  control  system  in  Turkey  and  overall  if  further  properly  implemented 
could bring major improvement to the functioning of the system. Following the establishment 
of  the  comprehensive  action  plan  the  national  authorities  took  actions  to  address  the 
outstanding issues and in 2011 progress was made towards the strengthening the role of NAO, 
and  capacities  of  MEUA.  Nonetheless  further  critical  weaknesses  remain  related  to  CFCU 
supervision  (staffing,  procurement  planning  and  payments  as  well  as  lack  of  supervision  of 
the  SPOs),  therefore  further  efforts  are  needed  in  order  create  adequate  capacity  to  absorb 
funds for all the operating structures of IPA funds.  

For  the  accreditation  of  the  operating  structures  under  component  III  and  IV  good  progress 
has  been  achieved  in  2011  as  all  necessary  procedures  for  granting  the  conferral  of 
management were about to be completed in the end of 2011. 

Regarding  Component  III,  DG  REGIO  carried  out  the  accreditation  audit  from  21-25 
November 2011, upon the request of the NAO, to accredit the Ministry of Science Industry 
and  Trade  for  conferral  of  the  tendering,  contracting  and  financial  management  functions 
from  the  CFCU  to  the  MoSIT.  The  audit  found  the  MoSIT  ready  for  conferral  and  the 
preparations of the Commission Decision were started. The same audit was carried out for the 
Transport OS in the Ministry of Transport, Maritime Affairs and Communication. However, 
the findings did not make possible the conferral of management powers to the transport OS 
yet.  As  regards  the  Environment  sector  the  Commission  adopted  a  Decision  on  20  January 
2011 conferring the management power to the Ministry of Environment and Urbanisation. 

Under IPA Component IV, despite delays in 2010, good progress has been achieved in 2011 
in  view  of  transferring  tendering,  contracting  and  financial  management  functions  from  the 
CFCU to the Ministry of Labour and Social Security. The legal basis for the Ministry to take 
over these tasks has been established by the Turkish authorities. The necessary staff has been 
recruited and trained. Procedures for procurement and calls for proposals have been defined.   

In  May  2011  the  National  Authorising  Officer  notified  the  Commission  about  the 
accreditation of the Ministry of Labour and Social Security for the tendering, contracting and 
financial  management  functions  relating  to  the  Human  Resources  Development  Operational 

46 

 
 
Programme. Following a Commission audit, the Commission launched the procedure in view 
of amending the conferral of management decision adopted by the Commission itself. 

For  IPA  Component  V  2011  was  marked  by  major  progress  and  by  the  Commission's  first 
decision  to  confer  the  IPARD  management  to  Turkey  for  17  provinces  and  three  major 
measures  (farm  and  food  processing  investments  as  well  as  rural  economic  diversification 
projects). While it is still too early to assess the actual effectiveness of the delivery systems 
based on programme implementation, the loss of funds at the end of 2011 could be avoided 
mainly  due  to  pre-financing  payments.  The  risk  will  however  be  high  for  2012,  where  a 
significant  amount  of  projects  must  be  implemented  and  paid  in  order  to  avoid  the  loss  of 
larger amounts. The Commission undertook immediate action to improve the absorption rates 
by establishing an action plan with the country, inter alia, supporting advisory and extension 
services,  improving  the  publicity,  ensuring  the  provision  of  credit  and  strengthening  of  the 
Managing Authority.  

Monitoring: 

Overall, important progress was achieved in the monitoring of EU funds in comparison to the 
previous year. In order to address the shortcomings in the monitoring system a major reform 
of the monitoring system has been decided between the Commission and Turkish authorities 
in  the  Joint  Monitoring  Committee  meeting  in  July  2011.  The  latter,  is  since  then  under 
implementation by all relevant Turkish authorities.  The monitoring reform was initiated by 
launching a joint mapping exercise with the Turkish national authorities to set out the roles 
and responsibilities of each institution and various tools available for this purpose. The reform 
led  to  the  following  improvements,  i.e.    Strengthening  the  role  of  SMSC  to  address  issues 
related  to  programming  (sector  level  overview)  and  donors'  coordination  with  a  view  of 
reviewing  the  deployment  of  assistance  in  a  more  comprehensive  manner,  more  regular 
Steering  Committees  coordinated  on  spot  monitoring  and  better  reporting  to  take  corrective 
actions.  

As concerns the capacities of the Turkish authorities, the major improvement was related to 
the upgrading of the Secretariat General for EU Affairs (EUSG) to the Ministry of European 
Union Affairs (MEUA). Although the capacities of the MEUA have been further strengthened 
through  trainings  and  assistance  delivered  in  the  context  of  the  ROM  (result  oriented 
monitoring) contract, much remains to be done in terms of development of own monitoring 
capacities of the MEUA  alongside the intensification of monitoring activities.  

Despite good progress in terms of management of IPA funds, there was a lack of cooperation 
between  national  authorities.  Therefore  further  efforts  are  needed  to  disclose  a  more 
cooperative  approach  on  monitoring  issues  with  all  stakeholders,  including  the  EU 
Delegation.  

In terms of on spot visits of the projects, the EU Delegation's monitoring system has also been 
further  developed  in  2011  by  establishing  more  elaborated  monitoring  maps  and  checklists 

47 

 
 
that  are  used  for  'on  the  spot'  checks.  The  EU  Delegation  has  intensified  the  'on  the  spot' 
monitoring in the second half of 2011. 

The IPA Monitoring Committee for all five components took place on 6 July 2011 in Ankara 
discussing progress and challenges in implementation. The main concern raised was related to 
the high risk of loss of significant amount of funds allocated for the Components III, IV and V 
due to the reasons linked to the lack of coordination between institutions, insufficient human 
resources  and  long  accreditation  processes.  The  IPA  Monitoring  Committee  drew  the 
attention to the fact that the coordination between institutions should be strengthened, as well 
as  exchanging  best  practices  and  lessons  learnt.  The  IPA  Monitoring  Committee  welcomed 
the preparation  of the  comprehensive action plan which should be properly  followed. Other 
concerns were raised over the CFCU capacities outlining it should reprioritise its work taking 
into account the risk of loss of funds across all components. 

Two  transition  assistance  and  institutional  building  (TAIB)  sector  related  monitoring 
committees  were  held  on  2  February  and  on  6  July  2011  combined  with  the  meetings 
concerning  the  programme  financing  Turkey’s  participation  in  the  ENPI  Black  Sea  basin 
programme under Component II.  
Regarding  the  ENPI  Black  Sea  Basin  programme,  Turkey  participated  in  two  Joint 
Monitoring Committees organised by the Joint Managing Authority (Romania). 

 In  2011  two  rounds  of  sector  monitoring  committees  took  place  including  all  three 
operational  programmes  under  IPA  component  III  and  one  annual  technical  meeting.  The 
issues  discussed  concerned  the  programme  modification  for  2012-13,  accreditation  of  the 
Ministry of Science, Industry and Technology as well as the Ministry of Transport, Maritime 
Affairs  and  Communication  for  the  tendering,  contracting  and  financial  management 
functions  for  the  regional  competitiveness  and  the  transport  programmes,  project  pipelines 
and implementation progress for each of the programmes, including assessments of progress 
with  tendering.  Special  attention  was  paid  to  the  RCOP,  as  the  project  pipeline  needs  to  be 
reinforced. 

The  human  resource  development  sector  monitoring  committees  for  Turkey  were  held  on7 
July  2011  in  Trabzon  and  on  1  December  2011  in  Ankara.  During  these  meetings,  the 
Committee examined the results of implementation of the operational programme on the basis 
of the 2010 sector-oriented annual report on the implementation and the results of the interim 
evaluation of the operational programme. The Committee was also informed about the state of 
implementation  of  on-going  operations,  the  identification  of  new  operations  and  other 
implementation issues such as the progress achieved in transferring tendering, contracting and 
financial management functions from the CFCU (Central Finance and Contracts Unit) to the 
Ministry of Labour and Social Security.    

Last  but  not  least,  rural  development  sectorial  committees  were  held  on  6  July  and  7 
December 2011. The main topics for discussion were focused on broad issues related to the 
absorption  of  funds  and  to  future  of  non-accredited  measures  such  as  support  to  producer 
groups and local rural development strategies.  

48 

 
 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Turkey 

Turkey 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

257,202,720 

232,700,542 

90.47% 

135,113,422  52.53% 

IPA 2008 

257,125,297 

177,628,020 

69.08% 

119,398,270  46.44% 

IPA 2009 

205,550,810 

113,150,079 

55.05% 

97,977,919 

47.67% 

IPA 2010 

218,809,826 

75,048,075 

34.30% 

73,142,253 

33.43% 

IPA 2011 

232,968,023 

0 

0.00% 

0 

0.00% 

Total 

1,171,656,676 

598,526,717 

51.08% 

425,631,864  36.33% 

IPA – Component I National Programme Turkey 

Turkey 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

256,202,720 

231,767,544 

90.46% 

134,773,281 

52.60% 

IPA 2008 

256,125,297 

177,429,358 

69.27% 

119,247,313 

46.56% 

IPA 2009 

204,550,810 

113,150,079 

55.32% 

97,977,919 

47.90% 

IPA 2010 

217,809,826 

75,048,075 

34.46% 

73,142,253 

33.58% 

IPA 2011 

229,968,023 

0 

0.00% 

0 

0.00% 

Total 

1,164,656,676 

597,395,056 

51.29% 

425,140,766 

36.50% 

IPA – Component II (CBC) Programme Turkey 

Turkey 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

1,000,000 

932,999 

93.30% 

340,141 

34.01% 

49 

 
 
 
 
 
 
 
IPA 2008 

1,000,000 

198,663 

19.87% 

150,957 

15.10% 

IPA 2009 

1,000,000 

IPA 2010 

1,000,000 

IPA 2011 

3,000,000 

0 

0 

0 

0.00% 

0.00% 

0.00% 

0 

0 

0 

0.00% 

0.00% 

0.00% 

Total 

7,000,000 

1,131,661 

16.17% 

491,098 

7.02% 

50 

 
 
ICELAND 

1. SUMMARY 

Following  Iceland's  application  for  EU  membership  in  July  2009  and  due  to  the  country's 
level  of  economic  and  social  development  and  its  extended  degree  of  alignment  with  EU 
legislation (Iceland is a member of the European Economic Area (EEA) and Schengen), IPA 
financial  support  to  Iceland  is  to  be  exclusively  implemented  under  IPA  Component  I 
'Transition Assistance and Institution Building'. 

The  Multi-annual  Indicative  Planning  Document  (MIPD)  2011-2013,  which  is  the  key 
strategic planning document for financial assistance under IPA in Iceland, was adopted on 8 
April 2011.  

Based  on  the  priorities  set  in  the  MIPD  2011-2013,  an  IPA  National  Programme  2011  for 
Iceland was adopted on 2 December 2011. The MIPD sets out two strategic objectives to be 
financed under IPA assistance. On the one hand, to further enhance Iceland's ability to assume 
the  obligations  of  membership  by  supporting  institutional  capacity  building  for  acquis 
transposition  and  implementation  and,  on  the  other,  to  reinforce  Iceland's  institutional 
capacity in its preparations for participation in and implementation of Structural and other EU 
funds. 

The 2011 Programme will support seven projects. The budget is EUR 12 million and balance 
between the two priority axes set in the MIPD was taken into consideration. 

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document 

The  global  objective  of  EU  financial  assistance  to  Iceland  is  to  support  its  efforts  towards 
compliance with the EU acquis, in order to become fully prepared to take on the obligations 
of membership of the European Union. 

The MIPD sets out two strategic objectives, to be financed under IPA assistance:  

- 

- 

to further enhance Iceland's ability to assume the obligations of membership by supporting 
institutional capacity building for acquis transposition and implementation.  

to  reinforce  Iceland's  institutional  capacity  in  its  preparations  for  participation  in  and 
implementation of Structural Funds  and other EU funds. 

The Commission's Opinion on Iceland's application for membership of the European Union of 
24  February  2010  constitutes  the  key  reference  for  identification  of  IPA  programming 
priorities. On 9 November 2010, the Commission adopted its 2010 enlargement package. The 
51 

 
 
 
 
2010  Progress  Report  for  Iceland,  the  first  of  its  kind,  confirms  and  further  supports  the 
priorities  for  pre-accession  financial  assistance  that  were  identified  in  the  Commission 
Opinion. 

Table 1: MIFF10 allocations per component, in EUR million  

Component 

2011 

2012 

2013 

2011-
2013 

I – Transition Assistance and Institution 
Building 

12

12 

6

30

2.2 Programming 

2.2.1 Component I 

2011 National Programme 

The  National  Programme  was  set  between  December  2010  and  June  2011.  A  number  of 
consultations  took  place  in  July  2011,  with  Civil  Society  organisations,  the  EU  Member 
States  and  International  Financial  Institutions  (namely  the  IMF)  in  Iceland.  The  programme 
was presented to the IPA management committee in October 2011.  

The total EU contribution for the 2011 Programme is EUR 12 million. The additional national 
contribution  is  EUR  3.74  million.  Out  of  the  EUR  12  million,  EUR  9  million  is  for  four 
projects  falling  under  the  first  strategic  priority  of  the  MIPD  (to  further  enhance  Iceland's 
ability to assume the obligations of membership by supporting institutional capacity building 
for acquis transposition and implementation) and EUR 3 million for three projects under the 
second strategic priority  (to reinforce Iceland's institutional capacity in its preparations for 
participation  in  and  implementation  of  Structural  Funds    and  other  EU  funds).  EUR  9.8 
million  is  targeted  at  institution  building  activities  and  EUR  2.2  million  is  dedicated  to 
investments. 

First  lessons  learned  in  the  implementation  of  TAIEX  assistance  in  Iceland  confirm  the 
specificity of needs in light of the high standard of public administration in Iceland, the very 
small size of the Icelandic administration and, linked to this, the limited absorption capacity 
for large scale technical assistance support. This specific setting underlines the need to ensure 

10Communication 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. 

52 

 
 
 
                                                            
 
flexibility and synergy in the provision of IPA assistance under the National IPA Programme, 
TAIEX short and medium term assistance, and the Multi-Beneficiary Programmes. 

53 

 
 
 
Iceland National Programme 2011 under IPA Component I 

EU 
contribution  

IPA 

National 
contribution  

Total amount 
(EU+National 
contribution) 

1,900,000  

9,200  

1,909,200 

3,.685,000  

751,100  

4,436,100 

825,000  

245,000  

1,070,000 

1,500,000  

1,923,000 

3,423,000 

Axis 1 - Building 
administrative capacity for 
acquis transposition and 
implementation 

Project 1: Institutional and 
laboratory capacity building to 
ensure food safety 

Project 2: Preparation for 
Implementing the Habitats and 
Birds Directives 

Project 3: Strengthening 
National Accounts 

Project 4: Translation of the 
acquis and support to setting 
up the conference 
interpretation programme at 
the University of Iceland 

Total Axis 1 

7,910,000  

2,928,300  

10,838,300  

Axis 2 - Preparation for 
effective use of Structural 
Funds and other EU funds 

Project 5: Katla Geopark: 
Regional development for the 
Eyjafjallajokull area 

Project 6: Increasing 
employability of low qualified 
workers through the 
development of a skills 
recognition system in adult 
education 

Project 7. Technical 
Assistance and Structural 
Funds Preparation Facility 

EU 
contribution  

IPA 

National 
contribution  

Total amount (EU  
+ National 
contribution) 

560,000 

187,000 

747,000 

1,875,000 

625,000 

2,500,000 

1,655,000 

- 

1,655,000 

54 

 
 
Total Axis 2 

4,090,000  

812,000  

4,902,000  

Total Axis 1 + Axis 2 

12,000,000  

3,740,300  

15,740,300  

Iceland National Programme 2012 under IPA (Transition Assistance and Institution Building 
Component) 

Axis 1 - Building administrative 
acquis 
capacity 
for 
and 
transposition 
implementation 

Project  1:  Preparation 
implementing 
Framework 
and 
Directives in Iceland 

for 
the  Water 
Floods 

Project  2:  Translation  of  the 
acquis 

EU 
contribution 

IPA 

National 
contribution  

Total  amount  (EU  + 
National 
contribution) 

1,722,400 

587,195  

2,309,595  

1,000,000  

2,281,305  

3,381,305  

Total Axis 1 

2,722,400  

2,968,500  

5,690,900  

-  Preparation 

Axis  2 
for 
effective  use  of  Structural 
Funds and other EU funds 

for 
Project  3:  Preparations 
implementation  of  Structural 
Funds in Iceland 

EU 
contribution  

IPA 

National 
contribution  

Total  amount  (EU  + 
National 
contribution) 

9,275,000  

2,595,000  

11,870,000  

Total Axis 2 

9,275,000  

2,595,000  

11,870,000  

Total Axis 1 + Axis 2 

11,997,402  

5,563,500  

17,560,900  

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

The National Programme 2011 for Iceland is the first programme for the country, so no 
implementation has taken place yet.

55 

 
 
 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Iceland  

Iceland 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2010 

IPA 2011 

12,000,000 

Total 

12,000,000 

0 

0 

0.00% 

0.00% 

0 

0 

0.00% 

0.00% 

IPA – Component I National Programme Iceland 

Iceland 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2010 

IPA 2011 

12,000,000 

Total 

12,000,000 

0 

0 

0.00% 

0.00% 

0 

0 

0.00% 

0.00% 

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE FORMER YUGOSLAV REPUBLIC of MACEDONIA 

1. SUMMARY 

The former Yugoslav Republic of Macedonia continued accession-related reforms with the 
support  of  IPA,  though  core  challenges  remained  in  2011.  For  the  first  time  the 
implementation of all IPA Components, except Component II- Cross-border cooperation, took 
place under decentralised management, which implies that the management of programmes is 
undertaken  by  the  relevant  national  authorities,  currently  subject  to  ex  ante  controls  by  the 
European Commission.  

Public administration efficiency was low, reflecting heavy procedures, weaknesses in staffing 
and a high turnover of officials. In comparison to previous years, greater efforts were made by 
the beneficiary country to utilise the available funds from all IPA Components, although there 
were evident delays in procurement. Limited availability of appropriate experts to draft tender 
documents  or  evaluate  proposals  hampered  the  procurement  process  mainly  affecting  IPA 
Components  I,  III  and  IV.  The  level  of  commitment  and  capability  differed  between  line 
Ministries. Greater awareness and commitment are needed to strengthen capacity in order to 
successfully  absorb  IPA  funds.  This,  moreover,  requires  greater  ownership  in  the  area  of 
strategic programming and project preparation in the future. 

The  2011  Component  I  National  Programme,  with  an  EU  contribution  of  EUR  28.903 
million,  was  approved  along  a  streamlined  sector-clustering  of  the  projects  along  the  main 
reform  priorities  of  the  country.  EU  support  previously  programmed  under  IPA  2007-2008 
and managed by the EU Delegation has been fully contracted. 

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document  

The Commission took a number of steps to enhance the strategic nature of programming over 
the last few years and to strengthen the link between the priorities established in the progress 
reports  and  the  programming  of  assistance.  To  better  illustrate  this  focus,  and  to  strengthen 
ownership  by  the  beneficiary  countries,  the  Commission  started  moving  to  a  sector-based 
logic in its planning of pre-accession assistance.   

In  agreement  with  the  national  authorities  it  was  decided  to  concentrate  efforts  on  targeted 
sectors,  with  concrete  indicators.  The  priority  sectors  as  described  in  the  MIPD  2011-2013 
are:  public  administration;  justice,  home  affairs  and  fundamental  rights;  private  sector 
development; agriculture and rural development; transport; environment and climate change, 
and social development.  

57 

 
 
 
 
Table 1: MIFF11 allocations per component, in EUR million  

Component 

2011 

2012 

2013 

2011-2013 

I – Transition Assistance and Institution Building 

28.80  27.20 

27.94 

83.94 

II – Cross-border cooperation 

5.12 

5.03 

5.24 

15.39 

III – Regional Development 

39.30  41.03 

51.80 

132.13 

IV – Human Resources Development 

8.80 

10.38 

11.20 

30.38 

V – Rural Development 

16.00  18.22 

21.02 

55.24 

TOTAL 

98.03  101.88  117.21 

317.11 

2.2 Programming  

2.2.1 Component I    

The programming of Component I for 2011 begun in 2010 and the programme was adopted in 
November 2011. Efforts were made by the Commission to focus on sector approach and that 
required  re-programming  the  annual  package  in  order  to  better  focus  on  results  and  MIPD 
targets and indicators. Participation in Union Programmes and Agencies was once more part 
of the support given to the country as well. In 2011 the preparatory measures for the Lifelong 
Learning and Youth in Action Programmes, suspended in 2010, were resumed. Furthermore, 
a new Memorandum of Understanding for the Intelligent Energy - Europe II (IEE II) pillar of 
the Competitiveness and Innovation framework programme (2007-2013) was adopted by the 
European  Commission  in  May  2011,  and  signed  in  June,  allowing  the  participation  of  the 
country in the open 2011 call for proposals of that programme. 

The  2011  National  Programme  was  the  first  drafted  following  a  sector  approach,  with  10 
interventions  in  the  areas  of  public  administration,  rule  of  law,  agriculture,  private  sector 
development,  environment  and  social  development.  In  addition,  a  sector  measure  tackling 
other important flexible administrative capacity needs was included in the programme. Only 
the  most  relevant  and  implementable  projects  proposed  by  the  national  authorities  were 
considered. 

When it comes to donor coordination, EU assistance to the national authorities in their efforts 
to  strengthen  the  public  administration  reforms,  environment,  competitiveness  and  fight 

11Communication 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. 

58 

 
 
 
                                                            
against  corruption  was  designed  to  be  in  synergy  with  funds  from  the  Organisation  for 
Security and Cooperation in Europe (OSCE), Norway, United States Agency for International 
Development  (USAID),  the  World  Bank,  and  the  Netherlands  and  followed  by  assistance 
from Germany, UNDP and other multilateral donor.  

Stronger participation and input by the beneficiary institutions along the programming cycle 
has  been  supported  by  IPA  2007  and  2008  projects  dealing  with  Public  Internal  Financial 
Control, Local Infrastructure, and targeted support to the Ministry for Information Society and 
Public Administration.  

Table  2:  Indicative  financial  allocations  for  the  year  under  the  National  Programme,  per 
priority axis and per project, in EUR million  

SECTORS 

Projects 

Budget  

PUBLIC ADMINISTRATION REFORM 

1. Public Administration Reforms and E-Government 

2. Further development of the Civil Society 

JUSTICE, HOME AFFAIRS AND FUNDAMENTAL RIGHTS 

3. Strengthening the Rule of Law in the field of organised and serious crime, 
alignment with EU acquis on Fundamental Rights as well as strengthening the 
judiciary's knowledge on the case-law of the European Court of Justice  

4. Freedom of Expression – Support to Media Reforms 

PRIVATE SECTOR DEVELOPMENT 

5. Bankruptcy and voluntary liquidation of companies 

AGRICULTURE and RURAL DEVELOPMENT 

3.595 

1.200 

2.397 

1.460 

1.269 

6. Upgrade of institutional and administrative capacities in line with Common 
Agricultural Policy (CAP) requirements 

2.537 

SOCIAL DEVELOPMENT 

7. Mutual Recognition of Professional Qualifications 

8.  Local  integration  of  refugees,  internally  displaced  persons  and  minority 
groups ((mainly for the construction of housing units) 

SUPPORT AND OTHE ACTIVITIES 

1.373 

2.962 

9.    Reinforcement  of  Administrative  Capacity  to  meet  the  obligations  of  7.495 

59 

 
 
 
 
 
 
 
 
membership (including Twinning arrangements) 

Including a TA Flexible Facility 

10. Union Programmes and Agencies 

TOTAL 

2.2.2 /2.2.3/2.2.4 - Components III, IV and V 

3.000 

4.613 

28 90 

As  far  as  Component  III  programming  is  concerned,  the  modification  of  the  country 
Operational  Programme  (OP)  for  Regional  Development  -  with  a  total  budget  of 
EUR 128.47 million out of which EUR 109.2 million is the IPA contribution 2007-2011- was 
agreed  the  previous  year  and  the  modified  Financing  Agreement  entered  into  force  on 
10 January 2011.  

No programming under Component IV to be reported in 2011 as the revision of the 2012-13 
OP is planned for the first semester of 2012. 

In  December  2011  the  third  modification  of  the  Component  V  IPARD  Programme  was 
adopted (COM (2011)9923). It included adaptation of the financial tables in the OP in order 
to take into account the new financial allocation for 2011 according to the MIPD 2010 - 2012. 
According  to  the  new  financial  allocation  IPARD  funds  for  2011  were  increased  from 
EUR 14 million to EUR 16 million. Furthermore, in December 2011 the Sectorial Agreement 
concluded between the country and the EU was modified in order to reflect the amendment of 
Article 188 of Commission Regulation (EC) No 718/2007. With this amendment the basis for 
calculation  of  the  pre-financing  was  changed  from  "the  first  three  years"  to  "the  three  most 
recent  years".  This  prevented  de-commitment  of  funds  through  increasing  the  rate  of  pre-
financing not only for Component V but also for Components II and IV. 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

The year 2011 has seen several major achievements in operational terms: 

•  The contracting of all outstanding projects under IPA 2008- Component I  
•  3  call  for  proposals  launched  under  the  IPARD  Programme  and  first  direct  payments  to 
farmers  made  in  the  country  and  62  contracts  signed  for  a  value  of  more  than 
EUR 1 million. 

•  The  European  Commission  and  the  Government  of  the  former  Yugoslav  Republic  of 
Macedonia concluded a Memorandum of Understanding on the association of the country 
to the Intelligent Energy - Europe II (IEE II) pillar of the Competitiveness and Innovation 
framework programme (2007-2013). 

60 

 
 
 
3.1. Success stories 

Among  the  success  stories,  the  IPA  2007  Project  Local  infrastructure  for  Social  and 
Economic  Cohesion  supported  improvement  of  the  infrastructure  in  municipalities  through 
completion  of  selected  small-scale  projects  as  well  as  of  staff  capacity  reinforcement  in  the 
Ministry  of  Local  Self-Government  and  municipalities, in particular in decentralised sectors 
and in areas targeting the most economically vulnerable. The total contracted value amounted 
to  EUR 6.572  million,  of  which  11  works  contracts  (of  a  total  value  of  EUR 4.582  million) 
were  implemented  (construction  phase)  throughout  2011.  They  included  installation  of 
hydraulic stoppers in the old city of Skopje to preserve the historical centre from road traffic, 
renovations  in  over  20  school  buildings  across  the  country;  constructions  of  buildings  for 
youth, culture or sport activities in different cities. The project had a substantial impact on the 
selected  municipalities  including  enhancement  of  EU  visibility  thanks  to  the  Municipal 
Awards.  

3.2 Overview of the implementation status of the different instruments and components  

During 2011 the Delegation contracted EUR 14 million and paid EUR 25 million, under IPA 
Components I and II, which represents EUR 6 million more paid than in 2010. This can be 
broken down as follows: 

-  34 Contracts under IPA 2008 Component I = EUR 11.5 million; 

-  15 Contracts under IPA 2007 Component II, CBC with Albania = EUR 0.8 million; 

-  7 Contracts under IPA 2007 Component II, CBC with Greece = EUR 0.7 million; 

-  5  Contracts  under  IPA  2008  Component  II,  ERDF  European  Territorial  Co-operation 

transnational programme 'South-East Europe' = EUR 0.4 million; 

-  7 Contracts under IPA 2010 Information and Communication = EUR 0.6; 

-  3 Contracts under IPA ATA 2011 = EUR 0.08; 

Insufficient  absorption  capacity  by  the  national  authorities  was  still  evident  across  IPA 
Components and was mainly related to the shortcomings of key institutions (NIPACs office, 
Central  Financing  and  Contracting  Department-Minister  of  Finance,  Audit  Authority  and 
most  Line  Ministries).  The  introduction  of  Decentralised  Implementation  System  (DIS)  for 
Component I in December 2010 triggered a remarkable slow-down in procurement, as it has 
been the case with Components III and IV where DIS was introduced in 2009. Under these 
two Components we still observed a considerable number of hick-ups in 2011. 

61 

 
 
 
During  2011  implementation  of  IPARD  advanced  as  compared  to  2010  and  three  calls  for 
applications were announced. The results from the calls showed that farmers maintained their 
interest to apply under IPARD, while at the same time the quality of submitted applications 
improved, leading to a decrease in the rejection rate.  

3.3 Sector I: Public Administration Reform 

IPA provided substantial support to the tax reform since 2007 aiming at improving the quality 
of services towards the taxpayers, as well as strengthening the administrative and operational 
capacity  of  the  Customs  Administration.  Support  under  IPA  Component  I  -  2007  for 
strengthening  the  capacity  of  the  General  Secretariat  of  the  Government  -  Sector  for  Policy 
Analysis and Coordination was crucial for designing the 2010-2015 Strategy for PAR.  

The Twinning instrument was used successfully in many priority areas to transfer experience 
from Member States' experts and helped the country to prepare for the implementation of EU 
policies  and  laws  in  2011.  Some  of  the  most  successful  ones  were  the  one  supporting  the 
Energy Regulatory Commission, the Tax Inspectorate for Corruption Prevention and Special 
Proceedings  Units,  in  order  to  conduct  special  investigations  for  fighting  tax  evasion  and 
corruption,  as  well  as  a  project  to  increase  the  correct  application  of  procurement  and 
financial management procedures by authorities in charge of managing EU funds. 

All  relevant  2007  projects  under  Component  I  (4  overall)  were  completed,  and  other  4 
financed  under  IPA  2008  were  under  implementation  in  2011.Institution  and  capacity 
building activity under the TAIEX instrument was also intense, like every year, particularly in 
the fields of agriculture, internal market and justice and home affairs, as can be seen from the 
tables bellow. Out of 212 requests received from different ministries, 143 were accepted.  

The former Yugoslav Republic of Macedonia - 2011 

Event type 

Single  Country 
Events 

Multi-country 
Events 

All events 

Experts  mobilised 
(Single 
country 
and  multi-country 
events 

AGR 

AGR IND/EXP 

AGR IND/STUD 

INFRA 

INFRA IND/EXP 

3 

14 

6 

1 

5 

14 

4 

2 

62 

17 

14 

10 

3 

5 

133 

20 

10 

19 

6 

 
 
  
  
INFRA IND/STUD 

3 

INT MARKT 

INT 
IND/EXP 

MARKT 

INT 
IND/STUD 

MARKT 

JHA 

JHA IND/EXP 

JHA IND/STUD 

LAF 

P2P 

RTP 

14 

14 

18 

36 

6 

41 

1 

Grand Total 

162 

1 

14 

15 

1 

18 

5 

74 

4 

28 

14 

18 

51 

6 

41 

1 

19 

5 

236 

6 

222 

20 

23 

247 

10 

39 

14 

256 

68 

1093 

3283 participants from former Yugoslav Republic of Macedonia attended TAIEX events in 2011 

In addition, a number of study tours were organised in the area of Climate Change, Vocational 
Training,  Tourism,  Rural  Development,  Conservation  of  cultural  heritage  and  public 
procurement,  where  staff  from  municipalities  and  regional  administration  were  the  main 
beneficiaries.  Regarding  the  People  to  People  Programme  (P2P),  some  study  tours  were 
organised  for  CSO's  and  other  organisations  in  the  areas  of  tourism,  gender,  HIV/AIDS, 
media freedoms, cultural heritage, environment, waste management, education, public health, 
etc. 

3.4 Sector II: Justice, Home Affairs and Fundamental Rights 

IPA  Component  I  2007-2008  projects  focused  on  legislative  reforms  in  integrated  border 
management,  immigration  and  asylum,  fight  against  crime  and  corruption,  upgrading  the  
country's  border  posts,  providing  support  to  institutions,  such  as  the  Parliament,  the 
Directorate  for  Personal  Data  Protection,  the  Ombudsman,  juvenile  justice  and  the  Unit  for 
the implementation of the Roma Strategy, that have a key role in ensuring appropriate levels 
of transparency and accountability and protecting the fundamental rights of the citizens.  

63 

 
 
  
  
  
  
  
  
  
 
 
 
  
 
The  Twinning  contract  "Support  to  the  Ombudsman"  (budget  EUR 600,000)can  be 
highlighted as a success story. The project financed under IPA 2008 is jointly implemented by 
the  French  national  Ombudsman  (the  former  'Médiateur  de  la  République',  now  'Défenseur 
des  Droits')  and  the  Spanish  'Defensor  del  Pueblo'.  It  started  in  February  2011  and  will  be 
ending by November 2012.  

The  goal  is  to  strengthen  the  capacities  of  the  Ombudsman  Office,  based  on  four  pillars: 
internal  revision  of  the  working  methods  and  of  the  IT  systems  used  in  the  Ombudsman 
Office; preparation of a strategic plan for communication meant to increase public awareness 
about the Ombudsman’s work; introduction of three new units. Another goal of the project is 
to contribute towards implementation of new proposals and reforms which may optimize the 
functioning of the institution and strengthen its financial independence. 

With  the  ratification  of  the  Optional  Protocol  to  the  Convention  against  Torture  and  Other 
Cruel,  Degrading  and  Inhuman  Treatment  or  Punishment  (OPCAT)  by  the  national 
Parliament,  the  Ombudsman  Office  was  entrusted  the  role  of  the  National  Preventive 
Mechanism,  in  a  similar  way  as  its  Spanish  counterpart.  Throughout  the  whole  project 
implementation,  a  Counsellor  of  the  Spanish  Ombudsman  has  been  based  in  Skopje  as 
Resident Twinning Adviser.  

3.5 Sector III: Private sector development 

The  sector  has  been  mostly  supported  through  projects  under  regional  projects,  like  the 
Western Balkans Investment Framework (WBIF) as well as TAIEX.  IPA Component I and 
IV  funded  several  relevant  actions,  aiming  at  strengthening  government  administrative 
capacity for protection of competition, for modernising the Employment Service Agency and 
for  coordination  of  social  security  systems  and  participation  in  EURES  (European 
Employment Services Network) in the framework of the freedom of movement of workers. 

3.6 Sector IV: Agriculture and rural development 

In  2011  three  calls  for  IPARD  (IPA  Rural  Development)  applications  were  organised.  The 
first  two  calls  resulted  in  62  contracts  signed,  while  the  92  applications  received  during  the 
third  call  were  still  under  processing  and  contracting  at  the  end  of  the  reporting  year.  The 
analysis  of  the  results  from  these  calls  showed  that  the  majority  of  contracted  projects  are 
under 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 
products.  Preparation  of  projects  under  measure  "Diversification  and  development  of  rural 
economic  activities"  seemed  to  be  most  difficult  and  most  of  the  projects  submitted  were 
rejected as ineligible.  

64 

 
 
The first payments of IPARD funds to final beneficiaries were made in 2011, which at the end 
of  the  year  amounted  to  approximately  1.000.000  Euro  of  EU  contribution,  still  a  modest 
amount representing only 2% of available funds 2007-2011 under IPA Component V. 

Despite  the  encouraging  evolution  of  the  IPARD  Agency  in  2011,  the  speed  of  programme 
implementation was still slow as the majority of the previously identified problematic issues 
were still not solved, and the Technical Assistance measure was still not accredited. 

In October 2011 an audit mission on the local IPARD procedures and structures was carried 
out,  revealing  serious  deficiencies,  notably  in  the  internal  control  standards,  and  on  some 
procedures  for  the  attribution  of  investment  aid.    Those  shortcomings  will  need  to  be  fully 
addressed  by the  national  authorities in  the  coming  months  in  order  to  avoid  any  corrective 
measure by the European Commission. 

Under IPA Component I – 2008 the project Design of a functional Integrated Administration 
and  Control  System  (IACS)  and  associated  institutional  capacity  ended  in  November  2011 
(Contract value EUR 538,750). Project activities had been fully implemented with excellent 
co-operation between contractor and beneficiaries. The following main results were achieved: 
campaign for setting up a functional LPIS in the whole territory of the country prepared and 
implemented;  cooperation  agreements  relating  to  land  identification  between  farmers/ 
breeders  and  the  IACS  unit  developed  and  introduced  -around  1,700  meetings  with  farmers 
have  been  completed  (over  8,000  parcels  digitised);  and  basis  for  a  functioning  LPIS 
established and operational on the whole territory of the country. 

As  far  as  Veterinary  policy  is  concerned,  two  vaccination  campaigns  -  spring  (May  –  June 
2011)  and  autumn  (October  2011)  –  were  completed  successfully  (about  90%  of  foxes 
vaccinated).Contract amount was EUR 940,000 financed under IPA Component I -2008. 

3.7 Sector V: Transport  

2011 was a year of progress, yet the progress remains uneven. Although two more contracts 
were signed during the reporting period (for Skopje railway station rehabilitation and for the 
OP's  own  interim  evaluation)  under  IPA  Component  III,  the  contracting  rate  and  real 
payments to beneficiaries remained very low. 

After severe delays in the preparation of the major project under Component III "Construction 
of new motorway section  Demir Kapija-Smokvica as  a part  of  pan -  European  Corridor  X" 
throughout 2010, the project file was finally approved by the Commission on 18 November 
2011.  The  Bilateral  Project  Agreement  was  signed  by  both  sides  on  9  December  2011  in 
Skopje, during a visit by DG REGIO. The project was tendered already in the fall of 2011 and 
fifteen offers were received from a large range of operators. Evaluation will be finalized by 
spring 2012.  

65 

 
 
There  was  some  progress  regarding  other  projects  in  the  transport  sector,  as  six  different 
Operational Identification Sheets were ready and would be approved in early 2012 (railroad 
station rehabilitation; railroad security upgrades; project preparation for a new railway line to 
Kicevo). 

3.8 Sector VI: Environment and climate change  

After lengthy preparation the major project for the construction of the waste water collection 
and treatment system for the municipality of Prilep, supposed to serve as a learning exercise 
for  the  preparation  and  later  implementation  of  similar  projects,  was  approved  by  the 
Commission  in  November  2011.  However,  the  procurement  process  faced  delays  and  will 
start only in 2012.  

The  national  authorities  faced  the  challenge  of  preparing  a  sufficient  pipeline  of  mature 
projects  able  to  absorb  the  planed  allocations.  Despite  considerable  acceleration  in  project 
selection and approval under the OP Regional Development, implementation has not yet fully 
covered the allocations of the environment axis. This is not only due to the complexities of 
procurement  preparation  but  to  more  important  difficulties  in  the  set-up  of  the  institutional 
framework  necessary  to  operate  such  projects  in  the  long  term;  for  example,  the  newly 
established  –  also  with  IPA  support  -  regional  waste  management  bodies  are  still  not 
operational.  

Under  Component  I  support  was  also  given  to  strengthen  the  central  and  local  level 
administrative  capacities  for  waste  management  and  related  aspects  of  industrial  pollution 
prevention and environmental impact assessment concerning landfills.  

3.9 Sector VII: Social development  

The financial plan of the Operational Programme Human Resources Development (OPHRD) 
2007-2011 amounted to EUR 39 million. By end 2011, the national authorities had declared 
certified expenditure incurred only to the amount of EUR 3.5 million, i.e. less than 10% of the 
financial  plan.  De-commitment  of  funds  at  end  2011  was  largely  avoided  because  of  the 
availability of an additional pre-financing for the OPHRD following the modification of the 
IPA Implementing Regulation.  

The administrative capacity of IPA units in the Line Ministries (Ministry of Labour & Social 
Policy  and  Ministry  of  Education  and  Science)  was  reinforced  with  the  contribution  of  the 
expertise provided by 5 Twinning projects, 3 of which started in 2011: 

1.  Support on the preparation of the country to manage the European Social fund through 
implementation of the Human Resources Development Component of IPA instrument, 
under implementation since February 2011 

2.  Support to the National Employment Policy, started in September 2011: 

66 

 
 
3.  Support  to  the  Modernisation  of  the  Educational  and  Training  System,  IPA 

Component IV Human Resources Development, on-going since October 2011. 

The audit carried out by DG EMPL in May 2011 identified a number of shortcomings 
in  staff  in  the  Operating  Structures,  which  would  be  partially  addressed  by  the 
upcoming additional hiring of 15 staff positions for IPA component IV in 2012.  

3.10 Cross-border Cooperation  

The  former  Yugoslav  Republic  of  Macedonia  participates in four bilateral IPA cross-border 
programmes with its neighbouring countries Albania, Bulgaria, Greece and Kosovo, as well 
as in the transnational South-East Europe programme.  A total of 27 new grant contracts were 
signed, distributed per programme as follows:  7 contracts under the first Call for proposals of 
the  programme  between  the  former  Yugoslav  Republic  of  Macedonia-Greece  (IPA  2007, 
EUR 0.7 million;  15  grant  contracts  under 
(IPA  2007, 
EUR 0.8 million);  and  5  Contracts  under  the  ERDF  European  Territorial  Co-operation 
Transnational Programme 'South-East Europe' (IPA 2008, EUR 0.4 million). 

the  CBC  with  Albania 

Under  the  CBC  Programme  with  Albania  17  contracts  were  under  implementation,  in 
important  areas  for  the  cross-border  region  such  as  eco-tourism,  collaboration  between 
Chambers  of  Commerce  on  both  sides  of  the  border;  promotion  of  business  women 
enterprises;  awareness  campaigns  on  the  protection  of  the  area  of  Shebenik-Jablanica  trans-
border natural park as well as promotion of the Galicica and Prespa national parks as tourist 
destinations; and development of services in order to create better employment opportunities 
in the border region. 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 

In light of the accreditation for decentralised management of all IPA Components by national 
authorities  ( yet with the exception of Component II CBC), Sectorial Monitoring Committees 
for all IPA components were organised regularly, including the annual IPA Joint Monitoring 
Committee  held  on  2  December  2011.  Two  Transition  Assistance  and  Institution  Building 
Sectorial  Monitoring  Committees  were  held  in  Skopje  in  2011  (one  in  May,  the  second  in 
October). In addition, progress in the area of monitoring of the IPA Operational Programmes 
was  attained  by  larger  involvement  of  the  national  structures;  nevertheless,  the  monitoring 
capacities within NIPAC and CFCD should be further reinforced.  

Regarding implementation and monitoring activities under centralised management, the EUD 
conducted  monitoring  of  the  on-going  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 each Component sectorial committees, a number of projects 
under IPA 2007/2008-Component I started to be included in the Result Oriented Monitoring 
(ROM)  which  operated  on  a  multi-country  basis.  This  tool  complemented  the  internal 

67 

 
 
monitoring activities carried out by the EU Delegation under various forms (regular reporting, 
steering committee meetings, project implementation reviews).  

Weaknesses in the management and control system reached a new, higher level of concern at 
the  end  of  2011.  Despite  good  progress  made  during  2010  in  establishing  the  institutional 
framework, national authorities faced problems with an increase workload hard to manage by 
understaffed institutions, and the challenges of implementing four out of five IPA Component 
under decentralised implementation system. 

In  2011  all  necessary  legal  steps  to  establish  the  IPA  Audit  Authority  were  formally 
completed,  in  particular  as  regards  the  appointment  of  the  General  IPA  Auditor.  However, 
some specific shortcomings, in terms of its operational budget, contractual arrangement of its 
staff and professional qualifications of the top management, together with the Commission's 
common  concern  on  under-staffing  in  key  IPA  management  bodies,  were  the  underlying 
reasons of the qualified opinions of the Commission auditors in 2011. That might cause in the 
medium term some corrective measures or even the activation of an interruption of payments 
for  Components  III,  IV  and  V.  Last  but  not  least,  current  performance  would  be  one  of  the 
benchmarks  to  decide  future  IPA  country  allocations;  therefore  urgent  remedy  actions  were 
expected from the national authorities to see IPA back on track in 2012. 

There  has  been  increased  attention  by  the  European  Parliament's  committee  on  Budgetary 
Control (CONT) to the former Yugoslav Republic of Macedonia's use of pre-accession funds. 
Following a visit to the country by European Parliament Committee in June 2011, a feedback 
report was established and discussed in the relevant Parliamentary committees. 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 of the national administration. 

68 

 
 
 
 
 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA former Yugoslav Republic of Macedonia12 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

former 
Republic  of 
Macedonia 

IPA 2007 

34,474,174 

32,536,093 

94.38% 

28,653,393 

83.12% 

IPA 2008 

38,969,289 

34,599,666 

88.79% 

20,233,246 

51.92% 

IPA 2009 

39,086,742 

152,310 

0.39% 

91,386 

IPA 2010 

40,012,429 

IPA 2011 

32,028,678 

0 

0 

0.00% 

0.00% 

0 

0 

0.23% 

0.00% 

0.00% 

Total 

184,571,312  67,288,069 

36.46% 

48,978,025 

26.54% 

IPA – Component I National Programme former Yugoslav Republic of Macedonia 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

former 
Republic  of 
Macedonia 

IPA 2007 

34,021,154 

32,268,206 

94.85% 

28,438,058 

83.59% 

IPA 2008 

37,122,001 

34,234,716 

92.22% 

19,999,925 

53.88% 

IPA 2009 

37,060,500 

152,310 

0.41% 

91,386 

IPA 2010 

36,917,068 

IPA 2011 

28,903,410 

0 

0 

0.00% 

0.00% 

0 

0 

0.25% 

0.00% 

0.00% 

Total 

174,024,133  66,655,232 

38.30% 

48,529,369 

27.89% 

12Decentralised Management since 2009 

69 

 
 
 
 
 
                                                            
IPA – Component II (CBC) Programme former Yugoslav Republic of Macedonia 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

former 
Republic  of 
Macedonia 

IPA 2007 

453,020 

267,887 

59.13% 

215,335 

47.53% 

IPA 2008 

1,847,288 

364,950 

19.76% 

233,321 

12.63% 

IPA 2009 

2,026,242 

IPA 2010 

3,095,361 

IPA 2011 

3,125,268 

0 

0 

0 

0.00% 

0.00% 

0.00% 

0 

0 

0 

0.00% 

0.00% 

0.00% 

Total 

10,547,179 

632,836 

6.00% 

448,656 

4.25% 

70 

 
 
MONTENEGRO 

1. SUMMARY 

Montenegro  continued,  throughout  2011,  its  efforts  to  address  the  key  priority  areas 
highlighted  in  the  2010  Commission  Opinion.  The  progress  achieved  by  the  country  was 
confirmed  by  the  recommendation  of  the  European  Commission  in  October  2011  to  open 
accession  negotiations.  Assistance  to  Montenegro  under  IPA  in  2011  further  supported  the 
progress and reform efforts of the national authorities, as highlighted by the Commission's on-
going monitoring and reporting. 

The bulk of IPA assistance was programmed under IPA Component I – Transition Assistance 
and  Institution  Building  National  Programme,  with  an  overall  EU  contribution  of 
EUR 26.494 million.  Implementation  of  IPA  funds  continued 
the 
responsibility  of  the  EU  Delegation  in  Podgorica.  In  parallel,  the  Montenegrin  authorities 
started  preparations  for  moving  towards  decentralised  management.  In  light  of  having 
received candidate country status in December 2010, IPA funds in Montenegro also supported 
the national authorities in the necessary preparations for the management of assistance under 
the Regional Development, Human Resources Development, as well as Agriculture and Rural 
Development IPA components. 

to  be  primarily 

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document  

In  November  2011,  the  Commission  adopted  a  revised  Multi-annual  Indicative  Planning 
Document  (MIPD)  for  the  years  2011-2013,  which  entered  into  force  following  the 
amendment of the IPA Regulation by which Montenegro was transferred from Annex II of the 
regulation (potential candidates) to Annex I (candidate countries)13. Montenegro will receive 
an indicative allocation of EUR 104 853 687 of pre-accession funds during the period 2011-
2013.  This  amount  includes  the  IPA  Component  II,  Cross-Border-Cooperation,  which  is 
included in a separate MIPD.  

The  new  MIPD  took  into  account  the  needs  identified  in  the  European  Partnership, 
Montenegro’s  own  national  sectorial  strategies,  as  well  as  the  key  priorities  of  the 
Commission’s  Opinion14,  and  also  taking  into  account  the  newly  granted  candidate  country 
status for Montenegro.  

13Regulation (EU) n° 153/2012 of the European Parliament and of the Council of 15 February 2012 amending 
Council Regulation (EC° n°1085/2006 establishing an Instrument for Pre-Accession Assistance (IPA) 
14SEC(2010) 1334  

71 

 
 
 
 
                                                            
The  Government  of  Montenegro,  local  stakeholders,  EU  Member  States,  as  well  as  other 
international donors were all extensively consulted during the process of drafting the MIPD.  

Taking  into  account  that  other  donors  are  also  actively  involved  in  Montenegro,  the  areas 
where  IPA  can  contribute  best  to  the  accession  process  of  the  country  are  linked  to  the 
following priorities: (i) address the key findings of the Commission Opinion; (ii) preparation 
for  the  use  post-accession  funds;  and  (iii)  alignment  to  the  acquis  and  (iv)  achieving 
decentralised management of IPA funds.  

To achieve these priorities in the programming period 2011-2013, the Commission decided to 
focus  its  assistance  on  the  following  sectors:    1.  Justice  and  home  affairs  and  fundamental 
rights; 2. Public administration reform; 3. Environment and climate change; 4. Transport; 5. 
Social  development;  6.  Agriculture  and  rural  development.  These  sectors  have  been 
established on the principle of a more focused approach on a more limited number of sectors. 
The  switch  to  a  more  sectorial  approach  in  programming  EU  assistance  in  Montenegro  in 
2011,  although  only  in  the  incipient  stages,  already  helped  increasing  the  donors'  and 
beneficiaries' coordination and the identification of existing gaps in each priority area.  

Finally,  while  the  MIPD  illustrates  Enlargement  specific  priorities,  it  also  draws  from  the 
“Europe 2020” Agenda, by improving regional competitiveness, as well as the management 
of both human capital and natural resources, as illustrated by the priority sectors 3 to 6.  

Table 1: MIFF15 allocations per component: 

Component 

2011 

2012 

2013 

2011-2013 

I  –  Transition  Assistance  and 
Institution Building 

29,843, 

16,346,471 

5,238,958 

51,429,028 

II – Cross-border cooperation  4,310,344 

4,588,551 

4,418,687 

13,317,582 

III – Regional Development 

8,000,000 

15,200,000 

23,200,000 

IV  –  Human  Resources 
Development 

2,800,000 

2,957,077 

5,757,077 

V – Rural Development 

3,300,000 

7,600,000 

10,900,000 

TOTAL 

34,153,943 

35,035,022 

35,414,722 

104,603,687 

Following  the  decision  of  the  European  Council to  grant  Montenegro  the  candidate  country 
status, in 2011 Montenegro became also eligible for assistance under IPA Components III, IV 

15 
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. 

72 

 
 
 
 
 
 
                                                            
and  V.  Taking  into  account  the  experience  of  other  IPA  beneficiary  countries  with  the 
implementation of assistance under these three components, discussions took place on how to 
best to share the financial envelope between all the IPA components. In order to allow time 
for  the  preparatory  work  necessary  for  setting  up  the  necessary  legal  and  institutional 
framework for initiating assistance under IPA Components III to V, the Commission services 
decided  to  allocated  funds  for  these  components  only  starting  in  2012,  while  in  2011 
Component I projects will give support to the national authorities for setting up the necessary 
structures. 

2.2 Programming 

2.2.1 Component I    

The  2011  National  Programme  for  Montenegro  under  the  IPA  Transition  Assistance  and 
Institution  Building  was  adopted  by  the  European  Commission  on  14  November  2011, 
following extended consultations between the European Commission, the national authorities 
and other stakeholders.  

The National  Programme  is  split  between six sectors in line with the MIPD 2011-2013: (1) 
Rule  of  law;  (2)  Public  administration;  (3)  Environment  and  climate  change;  (4)  Transport; 
(5) Social development and (6) Agriculture and rural development.  

The  EU  assistance  under  this  programme  focused  on  supporting  the  key  priorities  of  the 
Commission's  Opinion  (reference),  the  continuing  the  efforts  for  aligning  to  the  EU  acquis, 
but also on preparatory work for setting up of IPA Components III, IV and V of IPA; and on 
supporting the acquis. 

The first two sectors are a priority for Montenegro, as they allow the implementation of the 
'key priorities', as well as for preparing for decentralised management of EU funds. Sectors 3 
to 6 are essential for the socio-economic development of the country as well as for preparing 
components  III  to  V  of  IPA.  The  programme  also  includes  support  for  the  participations  in 
Union programmes such as the 7th Framework programme in Research; Entrepreneurship & 
Innovation; and Culture and Customs 2013.  

Consultations  with  donors  held  in  the  country  showed  that  priority  areas  for  future 
development  assistance  are  environment,  good  governance  and  rule  of  law,  as  well  as  EU 
accession. Donor coordination with IPA is crucial for the efficient use of scarce funds. And in 
2010, a specific position for donor coordination has been created within the Prime Minister's 
office. To date, no "lead donor" from EU Member States was identified for a given sector, due 
to the small size of the country and given that IPA is by far the largest donor. 

Lessons  learned,  both  from  the  enlargement  process  of  the  now  EU-10  and  EU-2  countries 
were  integrated  in  the  design  of  assistance  in  Montenegro.  A  key  lesson  learnt  from  the 
previous enlargements was that reforms in the judiciary and rule of law should be tackled at 
73 

 
 
an early stage of the pre-accession process in order to produce results on time, and this was 
integrated in the design of the MIPD and 2011 National Programme. Furthermore, experience 
showed  that  in  the  sectors  of  environment  and  transport  an  adequate  project  pipeline  and 
quality  project  preparation  is  essential  to  success;  and  competent  and  strong  managerial 
capacities  should  be  in  place,  at  local  and  national  levels.  These  issues  represent  now  the 
focus of the project preparation facility, 

In  2011,  Montenegro  was  allocated  under  IPA  a  total  amount  of  EUR  34 153 943,  out  of 
which  EUR 4 310 344  was  earmarked  for  Cross  Border  Cooperation  Programmes  (IPA 
Component II). From the remaining EUR 29 843 599 for Component I, EUR 3.35 million was 
allocated  for  the  participation  of  Montenegro  in  multi-beneficiary  programmes  such  as 
Tempus (EUR 1 200 000), Nuclear Safety and Radiation Protection (indicative EUR 350 000) 
and the Civil Society Facility (EUR 1 800 000). Therefore, the assistance programmed under 
the 2011 Component I National Programme totalled EUR 26 493 599, divided as follows:  

Table  2:  Indicative  financial  allocations  for  the  year  under  the  National  Programme,  per 
priority axis and per project, in EUR million  

Priority Sector  Projects 

Sector 1: Justice and Home Affairs and Fundamental Rights  

01 - Strengthening justice reform 

02 - Identifying durable solutions for (I)DPs and residents of 
Konik camp  

Sector 2: Public Administration Reform  

Budget  

3.70 

1.20 

2.50 

2.50 

03  -  Support 
Authority 

to 

the  Human  Resources  Management 

0.60 

04 - Support to Local Self-Government Reform II 

Sector 3: Environment and Climate Change  

05  -  Waste  water  treatment  systems  in  Cetinje  and  Bijelo 
Polje 

06 - Developing sustainable energy use 

Sector 4: Transport  

07  -  Vessel  Traffic  Management  Information  System 
(VTMIS) and response to marine pollution incidents 

Sector 5: Social Development  

74 

1.90 

7.60 

6.80 

0.80 

2.80 

2.80 

0.70 

 
 
 
 
 
 
 
 
 
08 - Introducing ECDL standards in the Educational system 

0.70 

Sector 6: Agriculture and Rural Development  

09  -  Strengthening  the  Rural  development  programme  and 
IPARD 

10 - Strengthening Veterinary Service 

Supporting programmes and implementation of the acquis 

2.50 

1.80 

0.70 

11  -  Development  of  Quality  Infrastructure  and  Metrology 
(DQIM) 

1.20 

12 - Strengthening State Aid management 

13 - Project Preparation Support for IPA Component III  

14 - Support for participation in Union programmes 

15  -  Technical  Assistance  and  Project  Preparation  Facility 
(TA/PPF) 

TOTAL 

2.2.2 Component II  

0.50 

2.30 

0.52 

1.66 

26.50 

The  2010-2011  Decisions  implementing  CBC  programmes  with  4  neighbour  countries 
(Albania,  Bosnia  and  Herzegovina,  Croatia  and  Serbia)  were  adopted  in  2010.  In  2011  the 
new programme, the CBC Kosovo – Montenegro for the years 2011-2013 was adopted on 21 
December 2011, with yearly allocation of EUR 600 000 for each side of the border.  

This  new  cross-border  cooperation  provides  Kosovo  with  an  opportunity  for  economic  and 
social  development  and  reconciliation.  The  aim  of IPA  assistance under Component II is to 
develop  local  administrative  and  project  management  capacity  in  Kosovo’s  border  regions 
and identify a pipeline of local development projects. The global objective of this programme 
is  to  improve  the  socio  economic  situation  in  the  eligible  area  by  fostering  cooperation  and 
joint  initiatives  between  Montenegro  and  Kosovo  in  the  following  priority  sectors: 
environmental  protection  and  climate  change,  sustainable  agriculture  and  forestry,  and 
tourism in the mutual interest of Kosovo and Montenegro citizens.    

In  the  course  of  2011,  all  2008  CBC  programmes  between  Montenegro  and  neighbouring 
countries (4 programmes) were granted an extension of contracting deadline in order to allow 
using the whole allocation.  

75 

 
 
 
 
 
 
 
 
 
 
 
 
Montenegro  also  participated  in  transnational  programmes  under  the  European  Cooperation 
Objective of the Structural Funds (i.e. ERDF-SEE & ERDF-MED) and the sole interregional 
programme (i.e. Adriatic) including regions of EU Member States. 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 Success stories 

Intelligence-led policing (IPA 2010 EUR 0.25 million) 

The  fight  against  organised  crime  is  one  of  the  key  priorities  for  Montenegro  in  moving 
towards the EU. Within this context, the EU put into action a Twinning project implemented 
by  the  Austrian  Criminal  Intelligence  Police  to  strengthen  the  institutional  and  operational 
capacity  of  the  Montenegrin  police.  The  objective  of  the  project  was  to  support  the 
implementation  of  an  Intelligence  Led  Policing  System,  a  model  of  policing  in  which 
intelligence  serves  as  a  guide  to  operations,  rather  than  the  reverse.  The  impact  has  been 
substantial:  the  Montenegrin  Police  have  strengthened  their  capacity  to  fight  organised  and 
serious crime; threat assessments, control strategies, pro-active investigations and the analysis 
and process of criminal intelligence data are all being used for this purpose; the police now 
have an Organised Crime Threat Assessment and control strategy as well as Organised Crime 
Mapping; it is now easier for the police to collect and process criminal intelligence data and to 
conduct pro-active investigations.  

Strengthening  the  regulatory  and  supervisory  capacity  of  the  financial  regulators  (IPA  2008 
EUR 1.2 million) 

This  2  year  Twinning  project  with  partners  of  Bulgaria  and  Netherlands  contributed 
substantially to the harmonisation of Montenegrin legislation with the EU acquis in the area 
of  banking,  securities,  pension,  insurance  and  anti-money  laundering  and  terrorist  financing 
(AML/CFT).  It  strengthened  financial  stability  and  cooperation  between  the  beneficiary 
country  institutions  and  enhanced  their  administrative  capacity.  The  project  results  also 
represent an important step towards the preparation of the country for the negotiation process 
to  EU  accession.  The  main  results  include:  eight  new  laws,  including  three  adopted  by  the 
Parliament - the Law on Financial Stability Council, the Law on Take-over Bids and the Law 
on Investment Funds; an Action Plan for Basel II implementation; a new Capital Adequacy 
Decision;  a  framework  for  the  implementation  of  Pillar  2  requirements  of  Basel  II  Accord; 
establishment  of  a  Financial  Stability  Council  and  preparation  of  action  plans  for  crisis 
management situations; gap analysis on the compliance of Montenegrin legislation with EU 
requirements  as  well  as  guidance  papers  for  the  transposition  of  all  major  directives  in  the 
area of securities and pensions. The direct beneficiaries of the project were the Central Bank 
of  Montenegro  (CBM),  the  Securities  and  Exchange  Commission  (SEC),  the  Insurance 
Supervision Agency (ISA) and the Ministry of Finance of Montenegro. Indirect beneficiaries 

76 

 
 
include  citizens  of  Montenegro  and  all  individuals  and  organisations  having  financial 
transactions with Montenegro.  

Development of Quality Infrastructure in Montenegro (IPA 2007, EUR 2 million) 

In  the  area  of  standardisation,  this  project  resulted  in  a  revised  process  of  adoption  of 
European standards involving public inquiry and the establishment of the first four Technical 
Committees. Around 7000 European standards were implemented. An information service on 
standards was harmonised with the requirements of Directives 98/34/EC and 98/48/EC in the 
standardisation  area.  The  capacity  for  accreditation  was  significantly  strengthened  and  a 
quality management system was introduced resulting in a positive audit and full membership 
in  European  Accreditation  in  November  2011.  In  the  area  of  conformity  assessment  an 
inventory was established and the first conformity assessment bodies were trained to serve as 
Notified  Bodies.  This  was  followed  by  simulated  accreditation  assessments  for  notification 
purposes in selected Conformity Assessment Bodies. In the area of metrology, the project re-
established  an  unbroken  chain  of  metrological  traceability  in  the  fields  of  mass,  length, 
pressure,  temperature  and  electrical  quantities.  The  project  also  developed  the  first  six  new 
approach directives. 

3.2 Overview of the implementation status of the different instruments and components  

During  2011  IPA  was  consolidated  by  additional  contracts  (EUR  29  million)  and  higher 
payments. By the end of the year 82% of all IPA funds available to Montenegro (IPA 2007-
2010) were committed and more than 50% disbursed. All projects financed from instruments 
predating  IPA  had  already  been  finalised  by  2011.  There  are  no  backlogs  in  the 
implementation  and  by  the  end  of  2011  more  than  250  contracts  were  on-going  for  around 
EUR 130 million. The reason for the high number of contracts is that, due to the small size of 
the  country  and  low  absorption  capacity  of  beneficiary  institutions,  the  contracts  need  to 
remain fairly small.  

The  implementation  of  all  these  funds  directly  contributed  to  the  recommendations  by  the 
Commission to open negotiations (ref). 

While IPA component I showed high rates of implementation, both in terms of commitments 
and disbursements, IPA component II continued to suffer from slow procurement processes  

As  regards  IPA  Component  II,  Cross  Border  Cooperation,  the  second  round  of  calls  for 
proposals  under  the  CBC  programmes  between  Montenegro  and  Bosnia  and  Herzegovina, 
Croatia  and  Serbia,  Bosnia  and  Herzegovina  and  Montenegro,  Croatia  and  Montenegro  and 
Serbia and Montenegro was launched from April to December 2011, while the evaluation of 
the second call for proposals for the programme with Albania was already completed by the 
end of 2011..  

77 

 
 
 
In every call of this second round, the number of applicants was greater than for the first one, 
which proves the grass-root interest in this type of instrument, its increasing popularity and a 
recognition  that  the  programmes  are  being  instrumental  in  fostering  good  neighbourly 
relations  and  contributing  to  stability.  Finally,  the  CBC  programme  document  of  the  joint 
programme with Kosovo was commonly submitted by the participating partners and adopted 
by the IPA Committee in October 2011, paving the way for the corresponding Commission 
Decision, the set-up of administrative structures and the likely launch of a call in 2012. 

3.3 Sector I: Justice and Home Affairs and Fundamental Rights  

The  MIPD  2011-2013  for  Montenegro  envisages  support  to  the  independence,  efficiency, 
effectiveness and accountability of the judiciary, including the penitentiary sector and the law-
enforcement institutions, with a view to strengthen the fight against corruption and organised 
crime.  This  includes  (a)  the  enhancement  of  cooperation  and  coordination,  at  domestic  and 
international level; (b) reaching a de-politicised and merit-based appointments of the members 
of the judicial and prosecutorial councils and of state prosecutors as well as the reinforcement 
of the independence, autonomy, efficiency and accountability of judges and prosecutors; (c) 
the  implementation  of  the  government's  anti-corruption  strategy  and  action  plan;  (d)  the 
establishment of a solid track record of proactive investigations, prosecutions and convictions 
in  corruption  and  organised  crime  cases  at  all  levels  –  which  requires  an  increased 
cooperation with regional and EU partners;  an efficient processing of criminal intelligence; 
and enhanced law enforcement capacities and coordination.  In this framework, the following 
main results have been achieved during the implementation of the projects in the Justice and 
Home Affairs sector in Montenegro in 2011: 

The project "Strengthening the Capacity of Police Administration (IPA 2009 EUR 2 million) 
has established a solid track record of proactive investigations, prosecutions and convictions 
The track record on organised crime and corruption was established and is being consolidated. 
The  Police  enhanced  its  capacity  to  collect  and  process  criminal  intelligence  data  and  to 
conduct  pro-active  investigations.  An  Organised  Crime  Threat  Assessment  (OCTA)  and 
control strategy was prepared, which includes an Organised Crime mapping with a geographic 
information  system  and  spatial  crime  analysis.  The  Police  Anti-Drug  Unit  enhanced  its 
administrative  and  institutional  capacity  (in  the  area  of  surveillance,  controlled  deliveries, 
collection and documentation of evidence, crime scene procedures) resulting in an improved 
investigation and prevention of drug trafficking. 

In  the  fight  against  corruption,  the  capacity  of  the  Montenegrin  authorities  responsible  for 
corruption  repressive  measures  was  strengthened  by  the  setting  up  of  a  Joint  Investigative 
Team including police; customs, judges, prosecutors, Anti-Money Laundering Administration 
(see intelligence-led policing in section 3.1)  

In  the  area  of  penitentiary  reform,  the  project  Support  to  Penitentiary  Reform  (IPA  2009 
EUR 0.2 million) provided a comprehensive feasibility study, which helped the Montenegrin 

78 

 
 
Government  to  establish  a  probation  system  which  is  being  consolidated.  A  comprehensive 
strategy  and  action  plan  for  penitentiary  matters  was  prepared  and  adopted  and  is  being 
implemented. This resulted in the strengthening of the prison administration capacity, and in 
the improvement of prison conditions. 

3.4 Sector II: Public Administration Reform  

One  of  the  objectives  set  in  the  MIPD  2011-2013  is  to  further  support  the  country's  efforts 
(centrally and locally) in its reform of the public administration: to enhance professionalism 
and  de-politicisation  of  the  administration;  to  improve  the  financial  management  systems 
including  for  decentralised  management  of  EU  funds;  to  strengthen  control  and  supervision 
bodies (e.g. Court of Auditors, Ombudsman, etc.); to consolidate efforts in the statistics in line 
with  EU  requirements.  The  majority  of  projects  on  Public  Administration  Reform  are  at  an 
early  stage  in  Montenegro.  However  two  projects  implemented  in  2011  which  have  had 
encouraging results in this sector are in the statistics and municipal development areas. 

The two year project Assisting Montenegro in approximating EU standards in Statistics (IPA 
2007,  EUR 815,000)  has  been  very  successful  in  preparing  the  new  Law  on  Statistics 
(adopted  by  the  Parliament  in  March  2012)  in  establishing  the  first  metadata  in  the 
Montenegrin  Statistical  Office  (Monstat)  and  in  introducing  the  concept  for  quality 
management  and  quality  reporting.  The  project  contributed  to  improving  the  system  of 
National Accounts by focusing on improving the existing data and introducing new sources, 
and  strengthening  the  links  with  business  statistics.  Pilot  calculation  of  quarterly  GDP  was 
introduced.  The  project  also  improved  the  availability  of  business  statistics  -  the  Structural 
Business  Statistics  (SBS)  and  Short  Term  Statistics  (STS)  and  the  improved  the  Statistical 
Business  Register.  The  project  contributed  to  the  introduction  of  the  Production  Index  and 
value  added  method  and  review  of  the  imputation  system  for  SB  Survey  and  method  of 
implementation.  The  tools  for  the  tourist  survey  were  prepared  and  Household  Business 
survey was enlarged to cover tourism. A separate spin-off project, funded with additional EU 
funds, resulted in the first tourism satellite accounts. 

The project Municipal Development Grant Scheme (IPA 2008 and 2010 EUR 5.4 million) is a 
grant  scheme  addressing  municipal  infrastructure  development  needs.  The  scheme  was 
successfully contracted and began implementation in 2011 when contracts were signed with 
14  municipalities  in  Montenegro.    The  projects  include  investments  in  fire  and  rescue 
protection,  road  and  parking  construction,  supply  of  equipment  for  waste  management, 
cultural  and  touristic  infrastructures  and  equipment.  As  these  projects  require  important 
secondary  procurement  activities,  the  grantees  are  supported  in  the  implementation  of  their 
project by EU funded technical assistance service contract. These calls for proposals were the 
first of their kind in Montenegro to directly address the investment needs of municipalities. At 
the  same  time,  the  projects  are  building  the  capacity  of  beneficiaries  to  manage  EU  grant 
contracts  according  to  best  practices  and  to  deal  with  the  future  demands  of  the  structural 
funds. 

79 

 
 
3.5 Sector III: Environment and climate change  

As indicated in the MIPD 2011-2013, the National Strategy for Sustainable Development of 
Montenegro  highlights  the  importance  of  developing  infrastructure,  including  wastewater 
treatment,  as  a  pre-condition  of  implementing  its  strategy.    The  recommendations  of  the 
MIPD state that “assistance to the environmental and climate change sector will look into the 
preservation of natural resources and environmental protection by providing improvements in 
the solid waste and waste water infrastructures". In this framework, the project Upgrade of the 
sewage  system  in  the  municipality  of  Niksic,  (IPA  2008  EUR  3.5  million),  which  began 
implementation  in  2011  will  fully  correspond  to  these  needs  by  providing  an  equipped  and 
operational  waste  water  treatment  plant,  including  collector  pipelines  in  this  large 
municipality.  The  main  purpose  of  the  project  is  to  improve  the  quality  of  Montenegro’s 
environmental  wastewater  infrastructure  base,  in  particular  targeting  the  protection  of 
environmentally sensitive receiving waters such as Skadar Lake. Two thirds of the 20 km of 
sewage network has already been built. This is the first project in Montenegro where parallel 
funding, together with the European Investment Bank has taken place. Involvement of the EU 
and  other  financial  stakeholders,  and  the  fact  that  these  types  of  projects  are  of  national 
interest, ensures future sustainability and continuing benefits to both citizens of Niksic and the 
environment of Montenegro. 

The  MIPD  also  states  "The  Opinion  concluded  that  Montenegro  will  have  to  make 
considerable and sustained efforts to align with and especially to implement and enforce the 
environmental  and  climate  acquis".  Activities  of  the  project  Technical  Assistance  for 
implementation  of  Energy  Community  Treaty  (IPA  2007  EUR  1.5  million)  are 
complementary  to  the  efforts  in  climate  mitigation  since  a  significant  part  of  the  project  is 
related to energy efficiency. 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 
achievements  in  2011  were  adoption  of  Grid-Code,  Electricity  market  rules,  Interim 
methodology  for  final  consumers  and  Interim  methodologies  for  use  of  transmission  and 
distribution systems. The main beneficiaries were the Ministry of Economic Development and 
the  Energy  Regulatory  Agency.  It  is  important  to  mention  synergy  and  complementarities 
with the World Bank funded project "Energy Efficiency in Montenegro" which is focused on 
investments  in  energy  efficiency.  The  main  results  of  this  project  will  enable  proper 
management and operation of electricity networks; catalyse investments in energy efficiency, 
renewable  energy  sources  and  cogeneration,  as  well  as  ensuring  better  regulatory  quality  in 
line with requirements of Energy Community Treaty.  

3.6 Sector IV: Transport  

MIPD 2011-2013 states that “The opinion mentions the need to strengthen administrative and 
implementation  capacities  in  the  transport  sector.  For  the  course  of  this  MIPD,  IPA  will 
contribute  to  investments  in  the  maritime  and  railway  sectors.”  In  this  framework,  a 
80 

 
 
substantial investment into the railway sector in Montenegro is ongoing through the following 
projects: 

The foundation for any improvements in the railway sector has been provided by developing 
the  main  design  for  the  rehabilitation  of  the  entire  railway  line  from  the  Port  of  Bar 
(Montenegrin coast) until the border with Serbia in Vrbnica. This has been achieved through 
the  project  Development  of  the  Transport  Sector  -  Preparation  of  Main  Design  for  Railway 
Infrastructure  Investment  (IPA  2007,  EUR 1 million).  The  finalization  of  this  large  project 
enabled the Montenegrin Railway Infrastructure Company to start planning the rehabilitation 
of different parts of the railway line and  other very expensive infrastructure objects such as 
bridges, tunnels and stations. It also provided a documentary basis for financial applications to 
several  International  Financial  Institutions.  The project approach through a  chain  of parallel 
actions  was  particularly  successful  -  firstly,  to  harmonise  laws  and  regulations,  secondly  to 
enable  the  institutional  bodies  to  plan  and  finally,  to  provide  funds  for  practical  and  visible 
changes.  

In  2011  a  section  of  almost  10  km  of  railway  line  between  the  capitol  of  Montenegro, 
Podgorica,  and  the  capital  of  Serbia,  Belgrade,  was  systematically  rehabilitated  through  the 
project Major rehabilitation of the main rail line Bar – Vrbnica, Section Kolasin – Trabaljevo  
(IPA 2009 EUR 5 million). The technical improvement of the railway track and overhead line 
provided a major upgrade to the safety and comfort of rail transport in the country. Until the 
upgrade, trains were forced for safety reasons to reduce the speed down to 40 km/h due to the 
state of the track. The difficult terrain around the entire section, which contains eight bridges 
and a long tunnel,  meant  the implementation of the works required special logistical efforts 
and  coordination  with  on-going  rail  traffic.  The  expected  result,  increased  speed  up  to  80 
km/h and improved safety for passengers, has been fully achieved.  

In terms of strengthening implementation capacities in the transport sector, two projects have 
had encouraging results. The project Support to rural roads in northern part of Montenegro - 
Supply  of  road  maintenance  machinery  (IPA  2009  EUR 1.2 million)  improved  local 
governments’  capabilities  in  12  municipalities  in  North  Montenegro16    to  maintain  the  rural 
road network in a sustainable and cost effective manner that will support the agriculture sector 
and  wider  socio-economic  development.  Finding  sustainable  solutions  for  rural  roads 
maintenance is a crucial factor in terms of the access of rural communities to basic services 
such  as  education,  primary  health  care,  water  supply,  local  markets  and  economic 
opportunities.  Based  on  common  EU  practice,  the  Ministry  of  Agriculture  and  Rural 
Development  identified  four  machinery  rings  as  the  most  appropriate  solution  to  maximise 
available resources to maintain the existing rural road network in North Montenegro. In this 
manner municipalities have access to machinery in partnership. The project strengthened the 
capacity  of  the  machinery  rings  through  the  delivery  of  specialized  machines.  The  main 
beneficiary was the Ministry of Agriculture and Rural Development. 

16Andrijevica; Bijelo Polje; Žabljak; Berane; Kolašin; Mojkovac; Niksic; Plav; Plužine; Pljevlja; Rožaje; and 
Šavnik 

81 

 
 
                                                            
A  successful  project  which  has  contributed  to  the  implementation  of  Montenegro's  Strategy 
for Integrated Border Management by improving the efficiency, effectiveness and safety of its 
border  control  and  processing  procedures  is  Construction  works  in  border  crossing  points 
Dobrakovo  and  Dracenovac  (IPA  2008  EUR  2.37  million).    Rehabilitation  of  the  physical 
border infrastructure is key not only to integrating Montenegro into regional trade and tourism 
networks  but  also  to  improve  traffic  flows  and  border  safety  measures  in  line  with  EU 
standards. Border crossing point "Dobrakovo" is strategically important as it processes 80% 
of all international freight and passenger movements between Port of Bar and Belgrade, while 
"Dracenovac"  is  located  on  the  second  busiest  road  transport  route  between  Serbia  and 
Montenegro. The completion in October 2011 of the construction works has had a significant 
impact on passengers and goods transport by considerably reducing the time taken to perform 
inspections of vehicles by security, customs and veterinary/phytosanitary officers. The main 
beneficiary was the Ministry of Internal Affairs. 

3.7 Sector V: Social development  

The  MIPD  2011-2013  states  “The  objective  of  IPA  interventions  is  to  improve  social 
inclusion  in  general,  to  improve  social  services  as  well  as  education  and  high  quality 
vocational education and training (VET) system, and to improve access of unemployed people 
to the labour market.” Several IPA projects have contributed to these objectives during 2011. 

Some  of  the  key  achievements  of  the  project  Labour  Market  Reform  and  Workforce 
Development  (IPA  2008  EUR  1.8  million)  included  the  development  of  a  national 
Employment  and  Human  Resources  Development  Strategy  with  the  corresponding  Action 
Plan,  a  web  based  Information  Platform,  Skills  Needs  Surveys  in  the  sectors  of  tourism, 
construction and wood processing and the development of Curriculum Modules within these 
training  areas.  The  project  addressed  factors  creating  structural 
three  vocational 
unemployment,  affecting  its  human  resources  and  the  widening  disparities  between 
municipalities.  Active 
included  a  call  for  proposals/grant  scheme 
(EUR 470,000)  promoting  local  employment  projects  and  the  opening  of  five  Career 
Guidance  Centres,  including  staff  training  of  the  staff  and  development  of  guidelines  on 
quality guidance. 

labour  measures 

The  project    National  Qualification  Framework  (NQF)  and  Quality  assurance  (QA)    in 
Education (IPA 2007 EUR 1.5 million) has made substantial progress in developing  a more 
coherent  EU  aligned  policy  in  lifelong  learning,  in  line  with  the  Lisbon  agenda,  amongst 
policy  makers,  practitioners,  employers  and  civil  servants  in  Montenegro.  The  21  month 
project which ended in 2011 achieved: extensive capacity building of quality framework staff 
and bodies; a strategy for development of the NQF; development of an NQF info management 
system;  clarification  of  occupations,  qualifications,  formal  and  non-formal  learning;  QA  in 
education planning and strategy including assistance to reforming higher education planning 
and  budgeting  in  line  with  the  Bologna  process;  creation  of  a  university  information  and 
monitoring system.    

82 

 
 
In  terms  of  social  inclusion,  the  project  Social  Welfare  and  Child  Care  System  Reform: 
Enhancing Social Inclusion (IPA 2010 EUR 2.9 million) is a three year programme with the 
Ministry  of  Labour  and  Social  Welfare,  the  Ministry  of  Education  and  Sport,  UNDP  and 
UNICEF which began implementation in January 2011. Results are still at an early stage but 
in  2011:  the    Law  on  Social  and  Child  Protection  was  revised  to  bring  it  into  line  with 
international  standards;  a  Strategy  on  Fostering  was  developed;  workshops  were  held  on 
standards in fostering, day care centres and shelters for child victims of violence as part of the 
process  of  developing  national  standards  and  guidelines  for  child  protection;  a  child 
protection database was developed to monitor and process data and information on vulnerable 
children;  technical  expertise  was  brought  in  to  prepare  and  advise  on  de-institutionalisation 
for  children  residing  in  homes;  18  grants  were  awarded  to  organizations  and  institutions  at 
municipal level to help build capacity in the development of community based social services.   

3.8 Sector VI: Agriculture and rural development  

The need outlined in the MIPD 2011-2013 to support the Ministry of Agriculture and related 
services/institutions to prepare for implementation of the rural development policies (IPARD) 
was  addressed  through  a  2  year  Twinning  project  Support  to  Establish  an  IPA  Rural 
Development  Programming  and  Implementation  System  (IPA  2008  EUR  1.5  million).  This 
project tackled the acquis-related reforms prioritised in the 2009 and 2010 Progress Reports 
notably  with  regards  to  the  applicable  binding  rules  necessary  to  prepare  for  the  future 
functioning  of  the  common  agricultural  policy  (CAP)  and  it  contributed  to  establishing  the 
institutional framework, the preparation of operational documentation, as well as training the 
available  staff.    The  project  has  notably  developed  strong  synergies  with  other  stakeholders 
and  aid  interventions.  Through  cooperation  with  the  World  Bank  MIDAS  project,  national 
grant schemes financed under this WB support were implemented as "IPARD-like" measures. 
Such  synergies  provided  concrete  training  activities  to  the  newly  developed  institutional 
capacities, and shall contribute to the impact and sustainability of the results of the Twinning 
project. A follow up project funded under IPA2011 and to be implemented in 2012-2014 will 
support  finalising  the  accreditation  package  for  component  V  to  be  submitted  to  the 
Commission and strengthen advisory and extension services capacities. 

In  terms  of  the  MIPD  2011-2013  objective  to  support  the  on-going  development  of  a 
sustainable agriculture sector …and to assist alignment to the common agricultural policy and 
EU standards, several IPA projects are noteworthy.  

Within  the  project  Control  and  eradication  of  rabies  and  classical  swine  fever  (IPA  2008 
EUR 1.36 million) the first oral rabies vaccination campaign was successfully carried out in 
autumn 2011. A total of 275,000 vaccine baits were distributed by aircraft at a density of 20 
baits  per  square  km  on  the  whole  territory  of Montenegro (except water surfaces and  urban 
areas).  The  dropping  of  the  vaccine  baits  was  recorded  using  special  GPS  based  software 
which  allowed  later  analysis  of  the  effectiveness  of  the  bait  distribution.  The  aerial 
vaccination  campaign  was  supported  by  an  awareness  campaign  with  the  slogan  "Together 

83 

 
 
against  rabies"  anticipating  the  involvement  of  the  different  institutions  and  stakeholders 
involved.  Further  vaccination  campaigns  will  now  be  carried  out  until  the  disease  is 
eradicated. This activity is contributing in achievement of the overall objective of the project 
which is to improve animal health in Montenegro thus ensuring consumers' safety and public 
health,  development  of  agriculture  and  improved  quality  of  life  of  agricultural  producers. 
Given the trans-boundary character of this disease, rabies vaccination in Montenegro is a part 
of  the  larger  eradication  effort  that  is  being  carried  out  in  parallel  in  other  Western  Balkan 
countries through EU support.  

Another  project  in  this  sector,  Animal  identification  and  registration,  Phase  II  (IPA  2007 
EUR 1.2 million)  has    been  successful  in:  improving  implementation  of  the  Law  on 
Identification  and  Registration  of  Animals  and 
the 
Identification  System  for  cattle,  sheep  and  goats;  introducing  a  Veterinary  Information 
System  (VIS)  linking  disease  control  measures  to  the  animal  identification  system;  
implementing  the  first  campaign  for  sheep  and  goats  identification  and  registration  in 
Montenegro; raising public awareness on the Veterinary Information System and ear tagging 
of  small  ruminant  by  implemented  publicity  campaign  (by  TV,  radio,  billboards,  posters, 
leaflets). 

its  amendments;  strengthening 

Through  the  project  Development  of  Food  Safety  Services  (IPA  2008  EUR  2.1  million) 
laboratory equipment  for use  in the food safety system was successfully delivered,  installed 
and being used effectively in the laboratories involved.   

3.9 Implement effectively the acquis  

MIPD  2011-2013  states  “A  priority  for  IPA  is  to  support  Montenegro’s  efforts  through 
significant strengthening of administrative and implementation capacities in the areas of the 
acquis.”  In this framework the following projects have been particularly successful: 

The  project  Accession  to  Internal  Market  (AIM)  –  Components  I  and  II  (IPA  2009, 
EUR 800,000)  covered  four  sectors  -  competition,  state  aid,  and  market  surveillance  and 
competition  protection.  The  project  contributed  to  the  preparation  of  six  strategic  and 
programme documents, trained more than 220 people, and initiated 15 pilot cases. Three key 
new  laws  were  drafted  and  are  being  adopted  –  the  Law  on  Competition  protection,  on 
Consumer  protection  (transposing  nine  EU  directives)  and  on  Consumer  credits  with  the 
related bylaws.  In the area of Competition policy, the enforcement record of Montenegro was 
substantially  improved  and  the  first  cases  of  abuse  of  dominant  position  were  solved 
according  to  the  current  legislation.  In  the  area  of  State  Aid,  the  project  resulted  in  the 
preparation  of  a  Regional  Map,  the  elaboration  of  an  Adjustment  programme,  the 
establishment of a State Aid inventory and the introduction of the annual reporting on State 
Aid  in  Montenegro,  along  with    strengthening  the  capacity  for  managing  specific  cases  of 
state  aid  that  were  of  significant  public  importance.  In  the  area  of  market  surveillance  and 
consumer  protection,  the  project  helped  the  establishment  of  a  "national"  RAPEX  system, 

84 

 
 
strengthening  the  coordination  between  the  market  surveillance  bodies  and  improving  the 
methodology  for  market  surveillance,  which  resulted  in  21,000  dangerous  goods  being 
withdrawn from the market.    

The  purpose  of  the  Twinning  project  Support  to  the  Customs  Administration  (IPA  2008  
EUR 1 million) was to modernise the Customs System in full compliance with  EU standards 
in support of trade facilitation. The Ministry of Finance drafted a new Customs Law in line 
with  the  new  modernised  Community  Customs  Code  and  implementation  began  in  January 
2011.  A  detailed  Business  Change  Management  Plan  was  elaborated  and  a  Strategic 
Development Unit has been established in order to coordinate, communicate, monitor, review 
and report on its implementation. An internal affairs database for professional standards has 
been developed, an audit management system has been introduced and training programmes 
have  been  developed  and  implemented  in  order  to  familiarise  auditors  with  new  systems, 
procedures,  attitudes,  methodologies  and  to  upgrade  their  skills  and  experience  for  better 
performance  and  higher  standards  of  customs  auditing.  The  project  has  resulted  in  further 
aligning  customs  legislation  and  procedures  with  the  EU  acquis  which  is  one  of  the  EU 
Partnership priorities for Montenegro. Integrated Border Management and Enforcement have 
also  been  enhanced  through  establishing  improved  communication  systems  at  national  and 
international  level.  Cooperation  and  networking  have  been  enhanced  between  customs 
administrations, other relevant border agencies, neighbouring countries and the EU Member 
States  Workflow  and  procedures  at  Border  Crossing  Points  have  been  implemented  and 
updated.  

The two-year Twinning project strengthening the regulatory and supervisory capacity of the 
financial  regulators,  IPA    2008  EUR  1.2  million,    has  substantially  contributed  to  the 
harmonization  of  Montenegrin  legislation  with  the  EU  acquis  in  the  area  of  banking, 
securities, pension, insurance and anti-money laundering and terrorist financing (see section 
3.1 for details). 

3.10 Cross-border cooperation 

The  year  2011  has  been  the  first  in  which  IPA  Component  II  has  been  in  full  swing  in 
Montenegro. All CBC programmes, including transnational programmes under the European 
Cooperation Objective of the Structural Funds (i.e. ERDF-SEE & ERDF-MED) and the sole 
interregional programme (i.e. Adriatic), are now well established and running smoothly. For 
the first time, the population of the border municipalities and the citizens of Montenegro have 
had  the  advantage  of  benefiting  from  concrete  field  actions  promoting  the  economic  and 
social  development  of  the  border  areas  or  sustaining  a  large  variety  of  joint  cultural 
undertakings by local actors in these areas. All CBC programmes have also benefitted from 
IPA assistance providing coverage for the preparatory, management, monitoring, evaluation, 
and  information  and  control  activities  related  to  the  implementation  of  the  programmes, 
together with activities to reinforce the administrative capacity of the structures in charge of 
that implementation.  

85 

 
 
In  2011,  the  project  two  languages  -  One  book  (IPA  2007  EUR  39,800)  was  a  particular 
success. This cross border project between Montenegro and Albania was implemented by an 
NGO from Podgorica and the University of Shkodra under a priority measure targeting joint 
initiatives  of  local  groups  in  the  field  of  culture.  Activities  included:  the  establishment  of  a 
bilingual  website;  an  awareness  raising  campaign;  the  organisation  of  public  debates  and  a 
conference in both countries with the famous writer and Nobel Prize nominee Ismail Kadare; 
the publication and dissemination of a bilingual book in two volumes with works in drama, 
prose  and  poetry  by  contemporary  authors  from  the  cross-border  region.  The  books  were 
distributed free of charge in public libraries and the website17, which will be maintained after 
the project, offers a comprehensive bilingual database with information on local institutions of 
culture  and  education,  publishers  and  artists.  Both  the  Albanian  minority  in  Podgorica  and 
citizens, state institutions and municipalities in the two countries showed significant interest 
in  how  the  two  cultures  were  related  by  common  historical  events,  despite  the  different 
languages.  Cultural  cooperation  proved  to  be  an  effective  way  of  ensuring  familiarity  and 
communication,  whilst  stimulating  socio-economic  exchanges  in  the  Albanian-Montenegrin 
cross-border area.   

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 

In 2011 the national authorities of Montenegro progressed substantially with the preparation 
for conferral of management for IPA components I, II, III and IV, while starting also work for 
IPA Component V. 

In  2011  the  preparations  for  decentralised  management  advanced  significantly  for  all 
components.  The  legislative framework  was  finalised with the exception of the signature of 
the implementing and operational agreements for IPA Components IIb, III and IV. All bodies 
and  authorities  involved  in  decentralised  management  were  designated  and  the  respective 
appointments  were  finalised  with  the  exception  of  Head  of  Operating  Structure  for 
Component II and the Head of the CBC Body. For both positions personal appointments exist 
but  are  still  not  integrated  in  the  organisation  chart  of  the  Ministry  of  Foreign  Affairs  and 
European Integration.  

A High-level Working Group was established in the last quarter of 2011. It is headed by the 
CAO  and  meets  twice  a  month  with  a  clear  result  of  speeding  up  the  preparations  for 
decentralised  management.  The  Manuals  of  Procedures  for  the  first  two  components  were 
prepared for Components III and IV and advanced drafts of the Manuel of Procedures have 
been completed. IPA Component I provided support for decentralised management, provided 
through 6 projects, amounts so far to EUR 4.7 million for all components. 

As  regards  the  Monitoring  of  the  Implementation  of  IPA  funds,  an  IPA  Monitoring 
Committee took place in June 2011 with a follow up meeting in November 2011.  

17(http://www.dvajezika-jednaknjiga.me/, http://www.dygjuhe-njeliber.com/) 

86 

 
 
                                                            
Following this meeting the Commission indicated that as regards ownership, there is a need 
for  a  more  systematic  delegated  approach  and  delegated  power  in  all  ministries  has  been 
highlighted  by  the  Commission  and  the  NIPAC.  Furthermore,  the  Commission  stressed  the 
importance  of  strategic  planning,  in  order  to  better  meet  the  pre-conditions  (delivery  of 
permits, etc.) necessary before project implementation can start and in order to prevent delays.  

In  terms  of  monitoring,  16  projects  with  a  value  of  EUR  22.3  million  (22%  of  the  overall 
portfolio)  were  subject  to  external  monitoring.  All  projects  and  contracts  were  monitored 
throughout the year and all major projects have quarterly steering committees. In addition, on-
the-spot  checks  are  systematically  carried  out  for  works  and  supply  contracts.  Lastly,  as  a 
recent  Court  of  Auditors  report  pointed  out  a  lack  of  monitoring  of  many  small  grants,  the 
Delegation contracted an audit company to monitor the majority of small grants from the year 
2012.  

87 

 
 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Montenegro 

Montenegro 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

25,254,128 

24,971,292 

98.88% 

22,350,434 

88.50% 

IPA 2008 

28,847,296 

28,320,804 

98.17% 

20,768,014 

71.99% 

IPA 2009 

31,744,421 

22,487,156 

70.84% 

15,064,469 

47.46% 

IPA 2010 

30,938,823 

17,225,840 

55.68% 

4,804,421 

15.53% 

IPA 2011 

29,693,599 

0 

0.00% 

0 

0.00% 

Total 

146,478,267  93,005,092 

63.49% 

62,987,338 

43.00% 

IPA – Component I National Programme Montenegro 

Montenegro 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

23,870,504 

23,639,048 

99.03% 

21,350,218 

89.44% 

IPA 2008 

26,800,000 

26,683,713 

99.57% 

19,917,200 

74.32% 

IPA 2009 

28,432,179 

22,335,932 

78.56% 

14,986,732 

52.71% 

IPA 2010 

28,638,823 

17,175,840 

59.97% 

4,764,421 

16.64% 

IPA 2011 

26,493,599 

0 

0.00% 

0 

0.00% 

Total 

134,235,105  89,834,532 

66.92% 

61,018,571 

45.46% 

IPA – Component II (CBC) Programme Montenegro 

Montenegro 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

1,383,624 

1,332,244 

96.29% 

1,000,215 72.29% 

88 

 
 
 
 
 
 
 
IPA 2008 

2,047,296 

1,637,091 

79.96% 

850,814 

41.56% 

IPA 2009 

3,312,242 

151,224 

4.57% 

77,737 

2.35% 

IPA 2010 

2,300,000 

50,000 

2.17% 

40,000 

1.74% 

IPA 2011 

2,900,000 

0 

0.00% 

0 

0.00% 

Total 

11,943,162 

3,170,559 

26.55% 

1,968,767 16.48% 

89 

 
 
ALBANIA 

1. SUMMARY 

EU  financial  assistance  to  Albania  has  played  an  important  role  during  2011  in  further 
supporting  the  country  on  its  way  towards  European  integration.  On-going  projects  in  the 
areas of justice and home affairs, public administration reform and the fight against corruption 
have further advanced and have shown concrete results. This support has been important for 
Albania  in  order  to  fulfil  relevant  key  priorities  listed  in  the  2010  Commission  Opinion  on 
Albania's application for membership of the European Union.  

There has been overall progress in infrastructure projects, in particular in the transport sector 
(construction  of  rural  roads),  while  progress  in  the  water  sector  (construction  of  water 
treatment plants) has been slower partly due to unresolved property right issues. The Albanian 
authorities also need to focus on long-term maintenance of infrastructure projects.  

Many  technical  assistance  projects  continued  to  support  different  line  Ministries  and  state 
institutions, with the result that many relevant pieces of legislation for the acquis alignment 
have been prepared. However, in 2011 the political stalemate between the ruling coalition and 
the  opposition,  which  was  overcome  by  a  political  agreement  in  November,  prevented 
substantial progress on the adoption of key legislation. 

The share of funds contracted under the IPA programmes 2007, 2008, 2009 and 2010 is very 
high, continuing the positive trend that began in 2009.  

Concerning the preparation for the decentralised management of IPA funds, further progress 
has  been  made.  Under  IPA  Component  I,  the  key  structures  and  systems  have  been  put  in 
place and Albania submitted its application for the conferral of management in the beginning 
of  2012.  European  Commission  auditors  are  currently  analysing  the  application.  Work  has 
also continued on IPA Components II-V, with Component V more advanced than the others.  

2011 also saw further progress towards a sector-based programming. Some questions remain 
open regarding its practical implementation, notably the need for the Albanian Government to 
develop a realistic medium-term budget perspective for the sector strategies in place.  

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document 

The current Multi-annual Indicative Planning Document (MIPD) for Albania was adopted by 
the European Commission on 8 July 2011. The strategic priorities identified in the 2011-2013 

90 

 
 
 
 
MIPD  are  supporting  the  strengthening  of  the  rule  of  law,  improving  the  capacity  and 
efficiency of the public administration, and supporting social and economic  development as 
well as the acquis alignment. The following six sectors of interventions have been identified: 
i) justice and home affairs, ii) public administration reform, iii) transport, iv) environment and 
climate change, v) social development, vi) agriculture and rural development. 

Overall ownership on the side of the government to move towards a more sector approach has 
further  improved  during  2011,  in  particular  with  a  view  to  coordination  and  monitoring 
mechanisms  at  the  central  level.  At  the  same  time,  there  are  shortcomings  regarding  the 
administrative  capacity  in  some  line  Ministries  as  a  key  pre-condition  to  implement  sector 
policy strategies. 

The  IPA  mid-term  evaluation,  conducted  during  2010,  recommended  the  concentration  on 
fewer  specific  priorities  in  line  with  the  beneficiaries'  strategic  framework  reform. 
Additionally,  the  report  also  revealed  that  some  of  the  prerequisites  for  a  sector-based 
approach  do  exist  in  Albania.  However,  it  was  also  noted  that  at  present  the  administrative 
capacity to adopt a sector-based approach is in many line Ministries relatively low. Therefore, 
well-targeted  assistance  will  have  to  be  provided  and  continued  efforts  will  have  to  be 
undertaken  to  complete  on-going  reforms  (functional  strategies  and  monitoring  system). 
These findings have been  fully taken into account in preparing the MIPD 2011-2013 as the 
document was fully based on the national strategic framework and put future IPA intervention 
into perspective with on-going donor involvement.  

2.2 Programming  

2.2.1 Component I    

The programming of IPA 2011 for Albania has proven particularly effective, bringing to the 
unprecedented  situation  of  the  signature  of  the  Financing  Agreement  between  Commission 
and  the  country  government  and  the  following  starting  of  the  contracting  within  the 
programme year.  

The IPA 2011 programme focused in the different sectors to a large extends on investments 
and to a smaller extent on institution building projects. This was mostly due to the fact that a 
significant number of institution building projects, in particular in the area of rule of law and 
public  administration  reform  from  earlier  programmes  were  already  under  implementation 
and/or were about to start soon.  

Overall,  the  IPA  2011  programme  has  as  always  been  developed  in  close  cooperation  and 
consultation  with  national  authorities.  However,  the  programming  exercise  has  shown  some 
shortcomings,  compared  to  the  previous  year,  due  to  the  administrative  slowdown  in  the 
course and follow-up of the local elections in May 2011. The Member States, other donors as 

91 

 
 
well  as  civil  society  have  been  associated  in  the  process  as  much  as  possible.  Coordination 
meetings with international financial institutions as well as with EU and non–EU donors have 
been  organised  on  a  regular  basis.  These  primarily  focused  on  strategic  orientations,  the 
regional dimension and donor coordination of IPA planning and programming 

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  in  cooperation  with  Member  States  Agencies  and  joint  management  with 
International Organisations, as in recent years, is currently the best way to deliver IPA funds 
for Albania. There is for the near 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 2012 started already early during the reporting year, based 
on  the  six  sectors  of  the  MIPD  2011-2013.  Lessons  learned,  in  particular  regarding  the 
maturity, timely planning, better links between EU assistance and sector strategies as well as 
sustainability  have  been  taken  into  account  during  the  initial  programming  of  IPA  2012. 
Compared to the IPA programmes 2010 and 2011, which saw a high number of infrastructure 
projects, the 2012 programme pursues a more balanced approach between capacity building 
and investment. Some capacity building projects are clearly linked to give support in further 
developing  the  sector  or  sub-sector  approach  (e.g.  technical  assistance  to  justice  sector,  law 
enforcement sector or transport sector).  

Table 1: Indicative financial allocations for the year 2011 per component, in million EUR 

ALBANIA 

I. Transition Assistance and Institution Building 

Of which: 

National Programme   

Tempus Programme* 

Nuclear Safety and Radiation Protection* 

II. Cross-Border Cooperation 

Of which:  

CBC Montenegro-Albania 

2011  

84.30 

82.00 

2.00 

0.30 

10.4818 

0.85 

18The difference with Table 1 is explained by the allocation for participation in ERDF transnational programmes 
(EUR 0.51 million) 

92 

 
 
 
 
                                                            
 
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"** 

TOTAL 

0.85 

0.60 

1.66 

6.01 

0.51 

94.68 

*  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)  

Table 2: Indicative financial allocations for the year 2010 under the National Programme, per 
priority axis and per project, in EUR million  

Priority Axis/Projects 

Political Criteria  

Budget  

23.00 

Construction of a new pre-detention centre and prison in Shkodra  

18.50 

Support to the Albanian Customs Administration 

Supporting Social Inclusion of Roma and Egyptian communities 

Economic Criteria  

Construction of Vlora Bypass 

Rehabilitation of Vocational Education and Training (VET) schools in 
Leyha, Fier and Cerrik 

Support to Agriculture and Rural Development 

Improvement of rural roads in Albania 

Support for participation to Union Programmes 

Ability to assume the obligations of membership 

Construction of Sewerage System and Waste Water Treatment Plant in 

93 

3.00 

1.50 

48.50 

19.36 

2.20 

10.00 

14.50 

2.44 

10.50 

10.50 

 
 
 
 
 
 
 
 
 
 
 
Velipoja area Phase III 

TOTAL 

2.2.2 Component II  

82.00 

Albania is participating in three bilateral Cross-border Co-operation (CBC) Programmes with 
other EU accession countries (Montenegro and the former Yugoslav Republic of Macedonia 
since 2007 and Kosovo since 2010) and in one bilateral CBC Programme with an EU Member 
State (Greece since 2007).  

As  set  out  in  the  2011-13  MIPD  for  IPA  Component  II  -  Cross-border  Co-operation,  these 
four  CBC  Programmes  aim  at  (i)  supporting  economic,  social  and  territorial  cooperation  in 
border  areas,  (ii)  addressing  common  challenges  in  fields  such  as  environment,  natural  and 
cultural heritage, public health, prevention of and fight against organised crime, (iii) ensuring 
efficient  and  secure  borders,  (iv)  promoting  joint  small  scale  local  actions  ("people-to-
people")  and (v) supporting networks, accessibility and emergency preparedness. 

The  three  CBC  Programmes  with  other  EU  candidates  or  potential  candidates  are  mostly 
focused  on  specific  measures  to  promote  economic  development  with  an  emphasis  on 
tourism,  to  protect  environment  and  to  enhance  social  cohesion  through  "people-to-people" 
actions. The CBC Programme with Greece provides measures to promote entrepreneurship, to 
foster sustainable tourism, to facilitate border accessibility through small scale infrastructure, 
as well as to protect the environmental and cultural heritage along the border area.  

In  2011  these  four  CBC  Programmes  have  been  revised  in  order  to  include  the  2012-13 
appropriations  in  line  with  the  updated  financial  plan  set  out  in  the  2011-13  MIPD  for  IPA 
Component II - Cross-border Co-operation. The objectives, priority axes and measures of the 
four multi-annual programmes have remained unchanged.   

In the frame of the European Territorial Co-operation objective of the Structural Funds 2007-
2013, Albania is also part of the ERDF transnational programme "South-East Europe" (SEE) 
since  2007  and  of  the  ERDF  transnational  programme  "Mediterranean"  (MED)  since  2009. 
IPA funds from 2011 were integrated in the SEE and MED programmes. They are managed 
by  the  Commission's  Directorate-General  for  Regional  Policy,  which  is  in  charge  of  the 
programming  of  both  ERDF  and  IPA  funds  within  these  programmes.  The  involvement  of 
Albania  in  these  two  programmes  reflects  the  Commission's  intention  to  promote  the 
inclusion  of  Albanian  applicants  (e.g.  regional  and  local  institutions,  civil  society 
organizations,  universities,  etc.)  in  joint  transnational  co-operation  activities  with  partners 
from EU Member States. This participation will also facilitate the country's learning process 
regarding  European  territorial  co-operation  programmes'  rules  and  procedures  under  EU 
Structural Funds. 

94 

 
 
Since 2007 Albania is also member of the IPA Adriatic cross-border cooperation programme, 
whose  global  objective  is  to  strengthen  sustainable  development  across  the  Adriatic  region. 
Therefore, Albanian applicants may also experience joint transnational co-operation activities 
with partners of this specific region. 

2.2.3 Component III, IV and V 

Albania  has  still  no  access  to  these  IPA  components,  but  the  preparation  for  decentralised 
management of IPA funds of the corresponding nature is already underway, so to prepare the 
administrative structures and programmes for the future. This preparation has shown to be a 
challenging  administrative  capacity-building  exercise  for  the  Albanian  government  on  the 
road towards EU integration and has become one of its main priorities during the year 2011.  

2011  the  draft  Strategic  Coherence  Framework  has  been  provisionally  finalized  and  the 
Operational Programmes have been further elaborated. However, due to the open question of 
candidate  status  and  the  limited  time,  which  will  be  available  under  the  current  financial 
perspective, it is very unlikely that these documents can be implemented before 2014.  

On  Component  V  (Rural  development),  Albania  has  continued  to  adapt  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 (IPARD). The draft IPARD programme 
has been prepared by the Albanian side on the basis of sectorial 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.  An  IPA  2011  project  has  been  foreseen  to 
launch  a  pilot  project  to  introduce  "IPARD  like"  measures,  in  order  to  establish  a  grant 
scheme for farmers and make use of the already existing structures in accordance with IPARD 
rules. For Component V, the establishment of a rural cadastre and farm remained a crucial and 
challenging element for defining the scope of future rural beneficiaries. 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 Success stories 

3.1.1 Reaction to the incident in Gërdec: roads rehabilitated and a new school  

On  15  March  2008,  in  the  depot  for  dismantling  munitions  in  the  village  of  Gërdec  in  the 
Municipality  of  Vora  (14  kilometres  from  Tirana),  two  severe  explosions  created  a  huge 
crater with a hit wave that shocked the entire surrounding area. The powerful explosion in a 
populated  area  caused  human  losses,  severe  damages  to  the  environment  and  destruction  of 
houses and businesses.   

95 

 
 
The European Commission took the lead on the Gërdec reconstruction providing the support 
for  revitalization  of  the  area  in  the  fields  of  infrastructure,  education  and  environment.  The 
project  aimed  at  improving  the  living  conditions  and  creating  favourable  conditions  for 
starting the normal social-economic live in the area affected by the incident of Gërdec.   

Out  of  an  overall  EU  contribution  of  EUR 3.12 million,  3.5  km  of  roads  have  been 
reconstructed  in  the  Municipality  of  Vora  and  a  new  elementary  school  with  sport  facilities 
has been constructed in the village of Marqinet, close to the area of the incident.  

Roads  are  completed  with  sidewalks,  street  lights  and  a  proper  drainage  system,  improving 
the  environment  and  safety  in  the  area.  Moreover,  it  contributed  on  enhancing  the 
development of local businesses.  

The  new  school  has  a  capacity  for  500  pupils.  The  sport  facilities  comprise  an  indoor 
gymnasium and a football field, as recreational areas for the entire community. These modern 
premises  have  been  designed  and  constructed  taking  into  consideration  European  standards 
and  building  codes:  access  to  people  with  disabilities,  adequate  fire  protection  measures, 
energy efficiency, etc.  

The  living  conditions  of  the  affected  area  have  drastically  improved  as  a  result  of  this 
intervention.  A  final  aspect  to  underline  is  the  high  level  of  commitment  and  involvement 
showed by the Albanian counterparts - Vora municipality and relevant line ministries - during 
the  implementation  of  the  project,  contributing  to  a  successful  completion  in  2011  as  per 
schedule.  

3.1.2 Data Protection Commissioner Office (DPC)  

Data  protection,  in  particular  regarding  private  data,  is  an  important  right  for  the  socio-
economic  development  of  a  society.  The  IPA  2009  project  "Strengthening  of  the  Data 
Protection Commissioner office (DPC) for alignment with EU standards" (EUR 0.6 million), 
has  produced  important  results  during  the  year  2011.  The  Technical  Assistance  support 
strengthened  the  enforcement  of  Data  Protection  related  legislation  in  line  with  European 
standards  and  reinforced  the  administrative  capacity  of  the  DPC.  The  Technical  Assistance 
has  also  assisted  in  the  development  of  internal  procedures  concerning  the  execution  of  the 
DPC competences. Finally, legislative packages related to other sectors have been elaborated, 
for  example  in  the  area  of  Police  and  Civil  Registry  as  well  as  in  the  health  and  banking 
sectors. 

3.2 Overview of the implementation status of the different instruments and components  

The implementation of pre-IPA instruments in 2011 was almost completed with the exception 
of CARDS 2004 (committed to 97%), CARDS 2005 and 2006 (both committed to 99%).  

96 

 
 
2011 has been the best year to date regarding IPA implementation, as regards commitments 
and disbursements.  

The EU-Delegation contracted a total amount of EUR 100.38 million.  

The  payment  of  EUR  64.42  million  exceeded 
in  2010  where 
EUR 56.38 million  were  paid.  As  mentioned  before,  2011  saw  for  the  first  time  a  contract 
signed under IPA 2011 in the same year as the financing decision was adopted. 

the  performance 

3.3 Sector I: Public Administration Reform 

In the sector of public administration reform the following priorities for IPA support over the 
period covered by the 2011-13 MIPD have been identified: (i) completing essential steps in 
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  (ii)  improving  coordination  of  the  economic  and  fiscal 
policies  to  assist  in  the  stabilisation  of  the  macroeconomic  environment  and  ensure  the 
sustainability of public expenditure, while strengthening the capacity of institutions providing 
statistical data.  

During 2011, the reform of public administration in Albania was guided in particular by the 
key  priorities  related  to  this  sector.  The  Department  of  Public  Administration  continued  to 
receive  EC  support  in  order  to  increase  its  capacities  and  with  a  view  to  ensuring  the 
enforcement  of  the  civil  service  law.  The  necessary  amendments  to  this  law  were 
unfortunately blocked in the Parliament due to the lack of the 3/5 majority. As regards public 
financial  management,  positive  results  have  been  achieved  in  relation  to  the  effectiveness, 
efficiency  and  transparency  of  the  public  procurement,  public  actions  and  concessions 
systems in Albania (IPA 2008 project "Support to Public Procurement").  

Two  Twinning  projects  financed  from  IPA  2008  regarding  the  improvement  of  customs 
procedures  and  the  support  to  the  competition  authority  were  successfully  concluded 
throughout 2011. 

 In  the  difficult  political  context  of  2011,  a  sensitive  Twinning  project  to  support  the 
Parliament  has  started,  contributing  to  operative  of  this  institution  on  the  basis  of  a 
constructive and sustained political dialogue.  

Four  Twinning  projects  started  practical  implementation  during  2011  ("Strengthening  the 
Assembly of Albania", "Support to the Albanian Penitentiary Reform", "Enhancement of the 
operational  and  logistical  capacities  of  the  Directorate  of  Witness  and  Special  Persons 
Protection"  and  "Support  to  Anti-Money  Laundering  and  Financial  Crimes  Investigations 
Structures").  

SIGMA continued to support during 2011 Albania in the area of public administration reform. 
In particular SIGMA provided general support to the Department of Public Administration in 
97 

 
 
developing  a  new  civil  service  system.  SIGMA  also  provided  support  to  the  Ministry  of 
Justice in drafting regulations on administration simplification tools. In the area of financial 
control and external audit, SIGMA helped the Ministry of Finance on several levels.  Finally, 
SIGMA: provided assistance in the area of public procurement and concessions, e.g.  with the 
establishment of a new review body (Public Procurement Commission). 

TAIEX  implemented  38  national  events  and  66  multi-country  events  (workshops,  expert 
missions, study visits). 

In  2011,  Albania  participated  in  the  following  EU  programmes:  7th  Research  Framework 
Programme, Competition and Innovation Framework Programme (CIP), Europe for Citizens. 
Furthermore, the beneficiary signed an MoU enabling it to participate in the “Culture” Union 
Programmes. 

3.4 Sector II: Justice, Home Affairs and Fundamental Rights 

The  overall  objective  identified  in  the  2011-13  MIPD  is  to  strengthen  the  independence, 
transparency  and  efficiency  of  the  judiciary  and  to  enhance  the  rule  of  law.  Therefore,  the 
financial  assistance  provided  via  the  2011  National  Programme  for  Albania,  as  well  as 
through  previous  envelopes,  aimed  at  (i)  strengthening  the  professionalism  of  judges  and 
prosecutors,  (ii)  increasing  the  level  of  execution  of  court  decisions,  (iii)  improving  the 
infrastructure in the judicial sector, i.e. the courts, prison and pre-detention systems and (iv) 
reinforcing the capacity of the law-enforcement bodies and coordination between prosecutors 
and state police. In addition, several on-going projects include the fight against corruption as a 
cross cutting area of intervention, since the 2010 Commission Opinion considers corruption as 
a key challenge for the rule of law in Albania. 

The "EURALIUS" (EUR 3.3 million) assistance mission first of all provided support for the 
definition of the national strategy for the justice sector, which has been approved in July 2011. 
Under  the  leadership  of  the  Albanian  Government,  all  institutional  stakeholders,  i.e.  the 
Ministry  of  Justice,  Courts  and  the  General  Prosecutor  Office,  have  been  involved  in  this 
exercise  and  other  donors  active  in  this  area  have  been  consulted.  EURALIUS  experts  also 
focused on (i) the development a more efficient and transparent administration of the courts 
and (ii) the increase of the capacity of the School of Magistrates in terms of judges training. 
On the other hand, the "PAMECA" assistance mission provided support to the Albanian State 
Police  in  areas  of  money  laundering,  drug  trafficking,  fight  against  organised  crime  and 
integrated border management. 

New  pre-trial  detention  centres  with  more  than  100  places  capacity  have  been  built  in 
Elbasan, Fier and Berat and new prison in Fier with 600 places capacity is under construction. 
Through  the  twining  project  "Support  to  the  Albanian  Penitentiary  Reform"  alternative 
measures to detention have been implemented in order to ease overcrowding in prisons. This 
package of assistance is going to help Albania fulfil its engagement to improve treatment of 
detainees, as set out in the 2010 Commission Opinion. 

98 

 
 
3.5 Sector III: Transport 

Transport is identified as a priority sector under the 2011-13 MIPD since an increase in the 
stock  of  infrastructures  has  multiplier  effects  on  the  overall  economy  of  the  country, 
increasing access to  national and regional markets for the Albanian businesses. The EC has 
been aligning its interventions to the strategic direction of the Albanian Government to boost 
mobility first of all via road networks. However, technical assistance has been provided to the 
Ministry of Transport to plan and design infrastructure projects in the air, rail, maritime and 
combined traffics, where substantial work remains to be done. In addition, IPA assistance has 
focused on the approximation of the Albanian legislative framework with the EU acquis. 

Since  2008,  a  significant  amount  of  IPA  funds  was  foreseen  each  year  for  the  construction 
and  rehabilitation  of  secondary  and  rural  roads  in  order  to  contribute  to  the  economic 
development and poverty alleviation of rural areas in Albania (overall about EUR 50 million). 
This has been done in a context of full donor coordination, where IPA funds, combined with 
loans  from  European  Financial  Institutions  (EBRD  and  CoEDB),  have  been  able  to  move  a 
substantial  amount  of  financial  resources  towards  the  same  objective  to  improve  mobility 
across rural areas. In addition, the EU funded a number of feasibility studies for road transport 
infrastructures. With subsequent envelopes, the EU is funding fund the construction works, as 
in the case of the Vlora Bypass (EUR 19,365,000 under IPA 2011). 

The rehabilitation project of the Port of Shengjin started in July 2011. The latter includes the 
construction of a new quay and a new paved operating yard, with necessary services including 
water, electricity, lighting and drainage and storm bollards. As regards EU acquis compliance, 
an  on-going  Twinning  project  is  giving  assistance  to  the  Albanian  Civil  Aviation  Authority 
(EUR  1  million  under  IPA  2008)  to  implement  EU  air  safety  oversight  standards  and  to 
upgrade the skills of its human resources. 

3.6 Sector IV: Environment and climate change 

The country faces numerous and increasing environmental problems, including poor urban air 
quality, poor quality of drinking water, insufficient waste water treatment, lack of sanitation, 
chaotic urban development, deforestation and land degradation In the context of recent rapid 
growth and urbanization, the hazardous quality of the urban environment is having increasing 
impacts  on  public  health  associated  with  factors  such  as  solid  waste  management,  water 
quality and air quality. For all this reason, the 2011-13 MIDP considers environment as a key 
sector where to channel IPA financial assistance. 

The  EU  funded  a  number  of  projects  to  clean-up  environmental  hot-spots  and  to  build  up 
waste  water  treatment  plants  and  sewerage  systems  in  selected  municipalities/prefectures 
(Velipoje, Lushnje, Berat/Kuçove, Fier, Saranda, Elbasan and Korca).  

In addition, IPA technical assistance also aims at strengthening the administrative capacity of 
the Albanian Ministry of Environment, Forests and Water Administration, which plays a key 
99 

 
 
role  to  raise  awareness  in  the  public  opinion  and  among  all  line  Ministries  (Public  Works, 
Agriculture,  Tourism,  Education  etc.),  which  have  responsibilities  for  environmental 
protection and have to include environmental issues in their policies and strategic documents.  

The EU has been focusing on this sector also because EU environment and climate legislation 
together are one of the largest parts of the acquis. Its transposition and implementation is an 
enormous  challenge  for  every  pre-accession  country.  In  this  regard,  through  IPA  technical 
assistance Albania has archived a remarkable result in 2011 such as the adoption of the new 
Law  on  Environmental  Protection,  which  sets  a  comprehensive  framework  for  the  whole 
sector and translates into the Albanian legislation very important key EU Directives. 

3.7 Sector V: Social development  

The  2011-13  MIDP  has  identified  a  number  of  priorities  to  be  tackled  in  the  area  of  social 
development:  (i)  increasing  school  enrolment  rates  at  secondary  level;  (ii)  improving  the 
education system in order to increase the offer of required skills; (iii) establishing a modern 
vocational training system in line with the market expectations. IPA funds have already been 
used  to  address  these  priorities  in  previous  interventions  via  the  2008  and  2009  IPA 
envelopes.  However  the  IPA  2010  project  "Human  Resources  Development"  (EUR  3 
million), started in September 2011, is providing a comprehensive package of technical and 
financial assistance to the Ministry of Labour, Social Affairs and Equal Opportunities in order 
to improve its administrative capacity in implementing labour active market measures, which 
are designed to improve the vocational training system and to promote employment.  

IPA  support  to  this  sector  reflects  the  Commission's  objective  to  prepare  Albania  for  the 
implementation and management of the European Social Fund and to bring Albania closer to 
EU policies, both in terms of social policy development and institutional and administrative 
capacity  for  the  future  use  of  the  IPA  funds  under  component  IV  (human  resources 
development). 

The  Commission  is  also  looking  at  social  development  in  a  broader  perspective,  which 
includes  all  the  interventions  aimed  at  increasing  the  level  of  inclusiveness  of  vulnerable 
groups. Indeed, one of the key priorities identified in the Commission's 2010 Opinion is that 
Albania takes concrete steps to reinforce the protection of human rights, notably for women, 
children and persons belonging to minorities, such as Roma and Egyptians minorities, and to 
effectively  implement  anti-discrimination  policies.  Therefore,  in  the  2011  IPA  National 
Programme  envelope,  the  EC  has  envisaged  a  relevant  intervention  designed  ad  hoc  to 
increase the living conditions of the Roma and Egyptians minorities. 

3.8 Sector VI: Agriculture and rural development  

The main goals of Albania's rural development policies are (i) to improve the quality of life in 
rural areas through sustainable development of human and natural resources and diversifying 

100 

 
 
non-agricultural  activities,  (ii)  to  increase  the  economic  efficiency  of  the  agricultural  and 
agro-processing  sector  through  improved  productivity  and  product  quality  and  (iii)  to 
guarantee higher standard of food safety for the health of the population. 

The  2011-13  MIPD  has  endorsed  the  objectives  identified  by  the  Albanian  Ministry  of 
Agriculture.  The  Commission  considers  the  sector  as  a  priority  for  two  strategic  reasons. 
More  than  half  of  the  Albanian  population  still  works  in  agriculture,  thus  having  has  a 
considerable  impact  on  the  national  GDP.  Therefore,  financial  assistance  channelled  to  the 
sector has produced a multiplier effect over the living conditions of the population and over 
the  macroeconomic  situation  of  the  country,  helping  Albania  fulfil  the  enlargement 
obligations as regards the economic criteria. In addition, the overarching priority for the EC is 
to properly prepare Albania to use the funds available under IPA component V (agricultural 
and  rural  development).  Consequently,  IPA  technical  assistance  has  been  provided  to  the 
Albanian  Ministry  of  Agriculture  in  order  to  set  up  the  administrative  structures  devoted  to 
the management of IPA funds.  

As  far  as  Food  Safety  is  concerned,  IPA  technical  assistance  (EUR  5.65  million)  supported 
Albanian veterinary services in the fight against zoonotic diseases and the recently-established 
National Food Authority to carry out risk assessment and consolidate its operational capacity 
in terms of inspections to food businesses. The attention given to food safety also reflects the 
Commission's intention to boost the agricultural sector via an increase of agricultural products 
exportations, which can be achieved if food quality standards are respected.  

3.9 Cross cutting sector: civil society 

IPA funds from different yearly envelopes have been focusing on expanding civic initiatives 
and  on  building  CSOs'  capacities.  IPA  civil  society  facilities  have  fostered  (i)  sectorial  and 
regional  networking,  (ii)  exchange  of  experience  and  information,  (iii)  sharing  of  common 
benchmarks  and  good  practices.  IPA  civil  society  facilities,  financed  under  the  National 
Programme for Albania, have been designed and implemented in full conjunction with other 
IPA  assistance  for  civil  society  (regional  programmes  and  CBC  programmes)  and  with  the 
assistance channelled under the European Instrument for Democracy and Human Rights. 

IPA support towards civil society has addressed three main areas: (i) fight against corruption, 
organised  crime  and  human  trafficking;  (ii)  environment  protection  and  environmental 
education;  (iii)  assistance  to  vulnerable  groups  (e.g.  women,  children,  minorities  and  poor 
people).  These  areas  have  been  chosen,  taking  into  reference  the  key  priorities  for  Albania 
outlined  in  the  Commission's  2010  Opinion  (key  priority  number  8  anti-corruptions  and 
number 11 protection of human rights). 

IPA's support to civil society in Albania concerns the actions undertaken by the Institute for 
Policy  and  Legal  Studies  in  the  area  of  anticorruption.  The  Institute  succeeded  to  have  a 
decree  issued  by  the  Ministry  of  Justice  concerning  transparency  regulations  for  court 
proceedings  in  the  entire  country.  This  was  actually  beyond  the  expectations  of  the  project 
101 

 
 
which aimed at having at least internal regulations issued by some of the courts addressed by 
the Institute. Excellent technical preparation and efficient lobby action were the key elements 
to successfully accomplish more than initially planned. 

3.10 Cross-border cooperation 

During  2011,  in  the  frame  of  the  on-going  bilateral  Cross-border  Co-operation  (CBC) 
Programmes  with  Montenegro,  the  former  Yugoslav  Republic  of  Macedonia  (the  former 
Yugoslav  Republic  of  Macedonia)  and  Greece,  an  increased  number  of  contracts  have  been 
signed  following  call  for  proposals.  2011  was  also  the  year  of  the  first  fully-fledged  CBC 
programme  between  Albania  and  Kosovo,  with  the  simultaneous  signature  by  the  Albanian 
and  Kosovar  authorities  of  the  Financing  Agreements  with  the  European  Commission  in 
September 2011. 

As regards the Programme between Albania and the former Yugoslav Republic of Macedonia,  
in 2011 a total of 15 grant contracts were signed following the first call for proposals (total 
EU  contribution  of  approximately  EUR  527  000).  The  second  call,  with  an  allocation  of 
EUR 675 000, suffered some delays and the evaluation process could not be finalised during 
2011 (it was finally concluded in early 2012). The third call was launched in late 2011, with a 
total allocation of EUR 2 295 000 (2009, 2010 and 2011 appropriations). 

As  regards  the  Programme  between  Albania  and  Montenegro,  the  beneficiaries  (NGOs  and 
local  authorities)  of  6  grant  contracts,  emanating  from  the  first  call  for  proposals  (total  EU 
the 
contribution  of  approximately  EUR 522 000 
implementation of the projects. The evaluation process of the second call for proposals (total 
EU allocation of approximately EUR 1 440 000 - 2008 and 2009 appropriations) experienced 
some delays and could not be concluded within 2011 (it was finalised in February 2012). 

-  2007  appropriations),  started 

As regards the Programme between Albania and Greece, no contract has yet been signed in 
the  frame  of  the  first  call  for  proposals  (total  EU  contribution  of  approximately 
EUR 3,587,934), due to the delays encountered in the evaluation process, which could only be 
finalized at the end of 2011. 

During  2011,  in  the  frame  of  the  Albania's  participation  to  the  ERDF  South  East  Europe 
Transnational  Programme,  3  grant  beneficiaries  of  the  first  call  for  proposals  started  the  
implementation of the projects (total EU contribution of EUR 180,000 - 2007 appropriation). 
In  addition,  5  grants  contracts  were  signed  and  implemented  following  the  second  call  for 
proposals  (total  EU  contribution  of  approximately  EUR  365,700  -  2008  and  2009 
appropriations).  

However,  during  2011  the  implementation  of  the  different  cross-border  programmes  in 
Albania  faced  serious  shortcomings.  The  launching  and  evaluation  of  calls  for  proposals 
experienced  significant  delays.  This  is  particularly  the  case  of  the  evaluation  of  project 
proposals  submitted  under  the  second  call  for  proposals  of  the  CBC  programmes  with 
102 

 
 
Montenegro  and  the  former  Yugoslav  Republic  of  Macedonia  and  under  the  first  call  for 
proposals  of  the  programme  with  Greece.  These  sometimes  unjustified  delays  put  the 
implementation  of  the  CBC  Programmes  at  risk  and  caused  the  loss  of  some  funds.  Due  to 
delays, the Operating Structures of each CBC Programme have also repeatedly requested the 
extension of the contracting deadlines fixed in the relevant Financing Agreements.  

One  of  the  main  shortcomings  faced  during  2011  was  the  lack  of  proper  functioning  of  the 
Joint Technical Secretariat (JTS) in Shkodra for the Programme with Montenegro, as well as 
the  JTS  in  Struga  and  antenna  in  Elbasan  for  the  Programme  with  the  former  Yugoslav 
Republic  of  Macedonia.  Some  of  the  problems  experienced  by  the  JTSs  were  linked  to  the 
fact that the Operating Structures faced serious challenges in implementing the grant contracts 
for  technical  assistance  signed  with  the  EU  Delegation  to  Albania.  In  addition,  the  JTS  in 
Thessaloniki  for  the  Programme  with  Greece  was  not  set  up  as  foreseen  due  to  the 
considerable  delays  experienced  by  the  Greek  Managing  Authority  in  completing  the 
procedure for the selection of the relevant human resources. 

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 

The  2011  joint  monitoring  meeting  undertaken  by  the  European  Commission  with  the 
Albanian authorities in December reviewed the implementation of the currently on-going 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. These findings 
will be taken into account for the upcoming IPA 2012 programming. 

The  monitoring  of  projects  is  also  carried  out  throughout  the  year.  During  2011,  the 
Commission – in particular the EU Delegation - monitored 110 projects out of 268 through 
202 site visits. In addition 29 ROM monitoring activities have taken place. In addition several 
audits and self-evaluations have taken place. With regard to CBC, the Delegation engaged an 
external monitoring support through ATA 2011 funds.  

The implementation of CBC programmes and Civil Society activities through grant contracts 
remained  a  risk  and  required  close  monitoring,  as  the  grant  beneficiaries  are  mostly  local 
government  bodies  or  small  civil  society  organisations,  often  with  a  limited  administrative 
capacity. Additional information and communication efforts have been undertaken by the EU 
Delegation  and  technical  assistance,  in  order  to  better  prepare  these  organisations  for  the 
participation in calls for proposals and future project implementation. 

PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Albania 

103 

 
 
Albania 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

49,968,810 

49,428,161 

98.92% 

23,599,802 

47.23% 

IPA 2008 

66,596,705 

60,488,641 

90.83% 

39,270,274 

58.97% 

IPA 2009 

73,787,170 

47,024,067 

63.73% 

25,024,751 

33.91% 

IPA 2010 

87,159,507 

63,612,050 

72.98% 

15,654,491 

17.96% 

IPA 2011 

85,992,697 

14,500,000 

16.86% 

0 

0.00% 

Total 

363,504,889 

235,052,918 

64.66% 

103,549,318 

28.49% 

IPA – Component I National Programme Albania 

Albania 

 Allocated 

Contracted  % Contracted 

 Paid 

% Paid 

IPA 2007 

49,268,790 

48,748,161 

98.94% 

22,979,445 

46.64% 

IPA 2008 

64,037,000 

60,053,318 

93.78% 

38,986,283 

60.88% 

IPA 2009 

69,860,000 

46,777,605 

66.96% 

24,827,581 

35.54% 

IPA 2010 

83,200,000 

63,612,050 

76.46% 

15,654,491 

18.82% 

IPA 2011 

82,000,000 

14,500,000 

17.68% 

0 

0.00% 

Total 

348,365,790 

233,691,134 67.08% 

102,447,800 

29.41% 

IPA – Component II (CBC) Programme Albania 

Albania 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

700,020 

680,000 

97.14% 

620,357 

88.62% 

IPA 2008 

2,559,705 

435,322 

17.01% 

283,990 

11.09% 

IPA 2009 

3,927,170 

246,462 

6.28% 

197,170 

5.02% 

104 

 
 
 
 
 
 
 
IPA 2010 

3,959,507 

IPA 2011 

3,992,697 

0 

0 

0.00% 

0.00% 

0 

0 

0.00% 

0.00% 

Total 

15,139,099 

1,361,784 

9.00% 

1,101,517 7.28% 

105 

 
 
SERBIA 

1. SUMMARY 

During 2011, Serbia received pre-accession financial assistance from IPA under the first two 
IPA components (Transition Assistance & Institution Building and Cross-border Cooperation) 
which were still managed by the EU Delegation in Belgrade. The EU contribution regarding 
IPA Component I, allocated in 2011, was EUR 178.556 million. 

Serbia continued preparations for decentralised management of EU funds for Components I, 
II,  III  and  IV  by  completing  the  Gap  Plugging  phase  in  December  2011.  As  a  result  of  the 
latter, IPA-financed Technical Assistance for carrying out the Compliance Assessment began 
in January 2012. 

The  IPA  2011  National  Programme  was  adopted  by  the  European  Commission  on  8  July 
2011.  Particular  attention  was  paid  to  preparing  for  the  progressive  introduction  of  a  sector 
approach. 

The improvement of financial absorption capacity has continued. At the end of 2011, the EU 
Delegation was managing a portfolio of 708 on-going projects including substantial amounts 
for sectors such as public administration reform (EUR 26.3 million), justice and home affairs 
(EUR 11.95 million) and social development (EUR 32.1 million). 

Sector  prioritisation  was  achieved  by  8  sector  working  groups,  formed  for  the  first  time  by 
governmental and non-governmental stakeholders, on the basis of the Multi-annual Indicative 
Planning  Document  (MIPD)  2011-13,  the  Annual  Progress  Report,  the  Serbian  Needs 
Assessment  for  international  assistance  as  well  as  an  assessment  of  the  quality  of  existing 
strategic documents. 

2. STRATEGIC PLANNING AND PROGRAMMING 

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  of  the  Multi-annual  Indicative  Planning  Document  (MIPD) 
for the period 2011-13. To achieve the priorities selected for EU support in this programming 
period, IPA support will primarily focus its assistance on the following sectors:  

(1) 
(2) 
(3) 
(4) 
(5) 

Justice and Home Affairs; 
Public Administration Reform; 
Social Development; 
Private Sector Development; 
Transport; 

106 

 
 
 
(6) 
(7) 

Environment, Climate Change and Energy; and 
Agriculture and Rural development. 

During  2011,  the  Delegation  continued  to  play  a  leading  role  in  donor  coordination.  The 
coordination mechanisms that were established at the beginning of 2009 (monthly EU donor 
meetings  and  bi-monthly  informal  donor  group  meetings  with  donors  and  IFIs)  continued 
functioning well, bringing added value to the overall international assistance in Serbia. Sector 
coordination  meetings  were  held  at  the  initiative  of  line  ministries  and/or  donors.  In  most 
cases  they  were  organised  by  the  EU  Delegation.  In  almost  all  sectors  lead  donors  are 
identified. In 2011 a reform of donor coordination has started, led by the Serbian authorities 
and  supported  by  the  donor  community,  in  order  to  align  better  donor  coordination  with 
Serbia's Needs Assessment for International Assistance. All sector coordination groups are to 
be gradually taken over by the relevant national authorities under the overall coordination of 
SEIO. A lead donor will be associated to each group. This reform is implemented gradually 
and at the end of 2011 was not fully effective in all areas. However, once completed, it will be 
a major step towards better coordination and ownership. 

Table 1: MIFF19 allocations per component, in EUR million  

Component 

2010 

2011 

2012 

2010-2012 

I – Transition Assistance and Institution Building 

186.8  189.9 

193.8  569.9 

II – Cross-border cooperation 

11.1 

11.9 

12.0 

35.6 

TOTAL 

197.9  201.8 

205.8  605.5 

2.2 Programming 

2.2.1 Component I 

The  programming  activity  during  2011  included  finalisation  and  approval  of  the  IPA  2011 
programme and start of programming of IPA 2012 programme. 

The  Financing  Decision  for  IPA  2011  programme  was  adopted  on  8  July  2011.  The  2011 
Programme included 23 projects selected based on the 2010 Progress report and in line with 
the  2011-2013  MIPD  for  Serbia.  Particular  attention  was  paid  to  start  the  gradual  move 
towards sectorial approach. 

19 
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(2010) 
640 of 10.11.2010. 

107 

 
 
 
 
                                                            
The programming of IPA  2011 took into account the various lessons learned from previous 
CARDS and IPA programming exercises: preparedness and maturity of the selected projects, 
beneficiary  absorption  capacity  and  past  achievement  records  of  implementing  institutions. 
Project maturity was assessed against the quality of existing project documentation especially 
in  terms  of  investment  projects  involving  works  and  supplies.  The  ownership  of  national 
bodies responsible for the IPA programming process continued to rise, which was particularly 
evident in the donor coordination aspect.  

One example of the progress towards donor coordination is the EU participation to a Multi-
donor trust fund on justice sector reform lead by the World Bank with the participation of 8 
countries. 

The starting of this programming exercise has proven, however, to be more challenging than 
other  IPA  national  programmes  due  to  the  implementation  of  a  new  methodology  of 
programming for the introduction of a sectorial approach. 

Table 2: Indicative financial allocations for the year 2011 under the National Programme, per 
sector and per project, in EUR million: 

Sectors/Projects  

Justice and Home Affairs 

1. Strengthening the rule of law in Serbia 

2. Implementation of anti-discrimination policies 

Public Administration reform 

IPA 
support 

11.95 

9.75 

2.2 

26.3 

3. Strengthening legislation, policy and coordination capacities at the central level 

6.5 

4. Modernisation of Tax Administration 

5. Modernisation of the custom system 

6. Strengthening Capacities of the State Audit Institution and the Audit Authority 

7.  Capacity  building  and  IT  Assistance  to  the  Commission  for  the  Protection  of 
Competition 

8. Enforcement of intellectual property rights 

Social Development 

7.6 

4.1 

2.3 

3.0 

2.8 

32.1 

9. Support for the implementation of strategies for IDPs, refugees and returnees 

7.0 

108 

 
 
10. Support Human Capital development and research 

11.  Support  for  deinstitutionalisation  and  social  inclusion  of  persons  with  mental 
disability and mental illness  

12. Preparation of labour market institutions for European employment policy 

Private Sector Development 

13. Socio economic development in the Danube Region  

Transport 

14. Modernisation of Railways 

15. Access roads to the Žeželj bridge 

Environment, Climate change and Energy 

16. Construction of Waste Water Treatment Facilities 

17. MEGLIP-Municipal Environment Grant-Loan Investment Programme 

18.  Law  enforcement  in  the  field  of  industrial  pollution  control,  prevention  on 
chemical accidents and establishing the EMAS system  

19. Capacity Building for the Energy Agency  

Agriculture and Rural Development 

20. Support for Food Safety, Animal Welfare and control/eradication of swine fever 
and rabies 

EU Acquis other Horizontal Activities 

21. Project Preparation Facility and Support Measures 

22. Alignment with the European Statistical System (ESS)  

23. Support for Participation in EU Programmes 

16.9 

4.7 

3.5 

18.5 

18.5 

13.8 

8.3 

5.5 

38.6 

15.0 

19.1 

3.0 

1.5 

6.0 

6.0 

31.3 

7.8 

19.5 

4.0 

TOTAL 

178.55 

109 

 
 
 
2.2.2 Component II 

Serbia  is  actively  participating  in  3  Cross-Border  Cooperation  (CBC)  Programmes  with 
Western  Balkans  countries  (Croatia,  Montenegro  and  Bosnia  and  Herzegovina),  3  CBC 
Programmes  with  Member  States  (Bulgaria,  Romania  and  Hungary)  and  one  transnational 
interregional programme (South East Europe). 

All these programmes are implemented on the basis of a multiannual programme covering the 
entire financial period 2007-2013. Concerning the 3 CBC programmes of Serbia with Croatia, 
Montenegro and Bosnia and Herzegovina multi-annual programmes were adopted in 2007 by 
the Commission and revised in 2010. In 2011 the 3 programmes CBC intra-Western Balkans 
were  slightly  updated  to  include  the  2012  and  2013  financial  allocations  in  view  of  their 
adoption  in  2012  as  well  as  to  take  into  account  new  data  following  population  census 
conducted in Montenegro. 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 - Success stories  

Agriculture and rural development 

The  first  three  campaigns  of  oral  vaccination  of  foxes  (which  are  the  main  reservoir  and 
vector  for  spreading  of  rabies  virus  to  other  animals)  against  rabies  in  autumn  2010,  spring 
and  autumn  of  2011  already  yielded  noteworthy  results:  the  number  of  registered  cases  of 
rabies  was  substantially  reduced.  In  2009  (which  was  the  last  year  prior  to  the  start  of  oral 
vaccination), the veterinary service of Serbia recorded 185 rabies cases in wild animals, while 
in 2011 there were only 46 such cases, i.e. a decrease of 75% in the number of cases has been 
recorded. Concerning the geographical spread of the rabies, the difference is also remarkable 
between 2009 and 2011. In 2009, 21 out of 25 counties (okrug in Serbian) had cases of rabies 
in wildlife, by 2011 only 12 okrug had such cases. The usual procedure within the EU is to 
have 10 consecutive vaccinations within 5 years until complete eradication of this dangerous 
disease. Rabies in wild animals is eradicated in most of the EU Member States, in particular 
in  Western  Europe  where  eradication  programmes  started  decades  ago.  Elimination  of  this 
disease in the region neighbouring the rabies free EU Member States is therefore vital both in 
order to protect the health of humans and animals in the Beneficiary Countries, and reduce the 
risk of the disease re-introduction in the EU. The total value of the programme for eradication 
of animal diseases in Serbia to date is approximately 10 million Euros, while its foreseen total 
value is around EUR 20 million. 

Social development 

Through the project "Education for All - Increasing the Availability and Quality of Education 
for  Children  from  Marginalised  Groups"    (IPA  2008,  EUR  3  million)  –  which  seeks  to 

110 

 
 
contribute to social inclusion and poverty reduction by enabling greater access to the regular 
public education system in Serbia for children from marginalised and special needs groups, a 
number of important results were achieved – 178 pedagogical assistants (PA) were trained to 
support children form vulnerable groups, mainly Roma children and children with disabilities, 
in their enrolment and everyday activities in the schools.  

These PAs are also in charge of the contact with the community and the family of the children 
from vulnerable groups. The prevention of drop-out is their crucial objective, in line with the 
main  objectives  of  Serbia's  strategies,  but  also  in  line  with  the  Europe  2020  objectives. 
Training  for  the  school  staff  and  teachers,  as  well  as  a  large  campaign  to  sensitise  the 
schools/parents/communities  was  also  part  of  this  project,  helping  achieve  substantial 
progress in this area. 

3.2 Overview of the implementation status of the different instruments and components  

Overall,  by  the  end  of  2011,  contracts  worth  EUR  203  million  were  signed,  this  being  a 
substantial advancement compared to last year (excluding the general budget support by IPA 
2009).  

By  end  of  December  2011,  99.1%  of  IPA  2007,  85.9%  of  IPA  2008,  96.1  %  of  IPA  2009, 
55.7% of IPA 2010 and 39% of IPA 2011 have been committed. All remaining contracts to be 
committed under IPA 2008 and IPA 2009 were in the last phases of the tendering process and 
were expected to be signed during the first quarter of 2012. Those good achievements are the 
result  of  the  continued  efforts  in  terms  of  closely  monitoring  of  the  procurement  cycle 
(contract pipeline) by the EU Delegation. 

The early signature of the Financing Agreements for IPA 2009 (10 February 2010), IPA 2010 
(25  May  2010)  and  IPA  2011  (22  July  2011)  allowed  a  timely  implementation  of  those 
programmes.  

For  IPA  2011  programme  early  signature  allowed  starting  implementation  in  2011  and 
commitment of EUR 51 million by end of the year. 

3.3 Sector I: Public Administration Reform 

In  2011  few  projects  supporting  public  administration  reform  were  under  implementation. 
Some key projects should be highlighted.  

The main project - "Support to public administration reform process" - began implementation 
in 2011 (IPA 2010, EUR 6.5 million). Its aim is to provide support in three key inter-related 
segments of public administration reform: general legal and institutional framework for public 
administration  reform;  enhancement  of  the  recruitment  system  and  introduction  of  career 
development;  and  e-Government  development,  both  in  terms  of  policy  and  of  technological 
capacities.  With  these  three  different  axes,  the  project  aims  at  rationalising  administrative 

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resources  and  making  public  administration  more  transparent,  effective  and  accountable;  at 
improving  civil  service  in  the  sense  of  a  merit-based  system;  and  at  making  services  to  the 
citizens more effective and accessible.  

In addition to this key project, successful scholarships were granted to civil servants who got 
specialised  training  on  EU  acquis  requirements  in  various  Member  States  (IPA  2008,  "EU 
integration scholarships, EUR 4 million). These activities showed to be particularly effective 
in  enhancing  human  capacities  in  charge  of  preparation,  adoption,  implementation  and 
enforcement of EU-related legislation.  

Important  to  mention  is  also  the  Twinning  project  "Strengthening  the  Serbian  Public 
Procurement System" (IPA 2007 EUR 2 million) which continued to support reforms in the 
public procurement sector, especially in terms of legal analysis against acquis requirements. 
The project also supported the development of a strategy on public procurement, adopted by 
the Government in June 2011. External assistance in this field was also useful to encourage 
inter-institutional coordination, which proved to be inadequate in the past to carry out reforms 
in the sector.  A SIGMA assignment assisting the line working group in drafting the Law on 
General Administrative Procedures was carried out all along the year, until the finalisation of 
the text. With regard to TAIEX, Serbia continued to be a very active user of TAIEX events. 
During 2011, 110 events (either in Serbia or abroad) were organised with Serbia as a single 
beneficiary,  representing  9.6%  of  all  classic  TAIEX  events.  Further  159  events  (either  in 
Serbia  or  abroad)  were  organised  with  Serbia  as  one  of  the  beneficiaries.  Participation  of 
Serbians in the TAIEX events remained stable in 2011.  

3.4 Sector II: Justice, Home Affairs and Fundamental Rights  

Important  activities  have  been  carried  out  in  2011  in  this  sector  especially  improving 
capacities of the judiciary system as well as improving implementation of penal sanctions. 

In  terms  of  supporting  the  judiciary  system  in  Serbia,  some  key  projects  have  been 
implemented  with  the  aim  of  enhancing  capacities  of  staff  and  improving  transparency  and 
efficiency of judiciary system. In this field, three projects can be highlighted: 

•  “Support to the National Judicial Academy” (IPA 2007, EUR 1.45, million) provided 
technical  assistance  for  the  establishment  of  the  initial  and  continuous  mandatory 
training for Judges, Prosecutors and other relevant staff in the Serbian Judiciary. The 
project was completed in September 2011.  

•  “Improvement  of  transparency  and  efficiency  (prosecutors  and  penal  system)”  (IPA 
2008,  EUR  4.5million,  technical  assistance  and  supplies)  provided  assistance  to  the 
Ministry  of  Justice  to  improve  the  efficiency  and  transparency  of  the  Serbian 
prosecution  and  penalty  service  through  the  development  of  a  case  management 
system, including document handling and data collection.  

•  “Improvement  of  efficiency  and  transparency  of  judiciary  system”  (IPA  2007, 
EUR 3 million, technical assistance and supplies) provided assistance to the Ministry 
of Justice to improve the efficiency and transparency of the Serbian Courts through the 

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development  of  a  case  management  system,  including  document  handling  and  data 
collection. Due to the use of different types of electronic case management software 
by  the  Ministry  of  Justice  and the  courts  in  the  past,  this  project  encountered  delays 
and was not finalised at the end of 2011 as initially planned. 

Important  support  to  the  penalty  system  has  been  also  provided  in  2011.  This  included 
improvement of prison conditions for the inmates through the construction of a new security 
fence in the prison of and the construction of housing units in the Juvenile detention facility in 
Krusevac according to EU standards (“Improvement of the penalty system” IPA 2007, EUR 5 
million). 

Also  important  to  mention  is  the  support  to  alignment  of  Serbian  penal  system  with  EU 
standards. Two components were supported: i) introduction of efficient practical professional 
training program for convicts to enable them to be employed once their sentence is finished, 
and  ii)  establishment  of  necessary  preconditions  for  an  efficient  and  effective  alternative 
sanctions  system  (“Further  Alignment  of  Penal  system  of  Republic  of  Serbia  with  EU 
standards and strengthening alternative sanction system,” IPA 2010, EUR 5 million). 

Support  to  the  fight  against  corruption  has  been  also  continued.  The  project  “Fight  against 
Corruption” (IPA 2008, EUR 2.4 million, technical assistance and supplies) contributed to the 
reduction of corruption by supporting the operational functioning of a comprehensive agency 
that is in charge of coordinating the fight against corruption. Project implementation started in 
February 2011 and will end in March 2013.  

3.5 Sector III: Social development  

In  2011  IPA  support  helped  improving  social  inclusion  of  vulnerable  groups  as  well  as 
supporting education. 

Important support for social inclusion of refugees and IDPs has been provided in 2011 thanks 
to  projects  financed  under  IPA  2007  (EUR  10  million),  2008  (EUR  6  million)  and  2009 
(EUR 12.65 million).  These  projects  aimed  at  providing  refugees  and  IDPs  with  a 
comprehensive set of measures to facilitate and encourage their social inclusion into Serbian 
society. Measures included mainly housing solutions but also legal assistance as well as self-
employment and income generation support.  

Support to social inclusion of other vulnerable groups has been also provided in 2011. This 
included the following projects: 

"Implementation of priorities in the area of human rights and protection of national minority 
groups"  (IPA  2007,  EUR  1.5  million):  finalised  in  December  2011,  the  project  sought  to 
support  human  rights  standards  and  minority  protection  in  Serbia  and  aligning  them  to  EU 
standards. 

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"Social  Inclusion"  (IPA  2008,  EUR 5.5  million):  contributed  to  the  objective  of  improving 
social inclusion and reducing poverty among the most vulnerable groups in society (children 
with disabilities, women in rural areas and Roma) through rationalisation and decentralisation 
of  social  protection  services  and  development  of  community-based  alternatives.  Thanks  to 
support  provided  to  municipalities  to  develop  community  based  services,  the  number  of 
children with disabilities placed in large-scale residential institutions has decreased and local 
community-based  services  that  foster  employment  of  vulnerable  categories  of  youth  and 
women  have  been  strengthened.  The  project  was  in  2011  in  its  second  year  of 
implementation. 

Education has been also a key element of EU support in 2011. Only Few projects have been 
launched  and/or  continued  supporting  adult  education;  i.e.  ("Second  chance"  IPA  2008, 
EUR 4.5 million),  assistance  to  the  most  vulnerable  children  ("Education  for  all"  IPA  2008, 
EUR 3 million),  or  pre-school  education  ("Improvement  of  the  preschool  education"  IPA 
2009, EUR 3.75 million). 

Children  from  marginalised  and  special  needs  groups  were  the  main  beneficiaries,  in 
particular Roma population. 

3.6 Sector IV: Private Sector Development 

Worth to mention is the recently finalised project “Support to Enterprise Competitiveness and 
Export Promotion” – SECEP (with a total budget of EUR 3.5 million). The project aimed at 
supporting local SMEs to be more efficient, improve the competitiveness of Serbian products 
in the international market and enhance the long-term economic stability. In close cooperation 
with  the  ministry  in  charge  of  economy  and  regional  development  as  well  as  with  relevant 
agencies and local authorities the project organised 4 international “Meet the Buyer” events 
where  60+  multi-national  companies  were  in  direct  contact  with  more  than  1.100  potential 
Serbian  suppliers.  Through  in-company  assessments,  business  improvement  projects, 
international  consultant  support  and  tailor-made  workshops  50  companies  from  key  sectors 
(automotive,  metal  working,  electronics,  IT  and  packaging)  were  assisted  to  enter  global 
supply chains. During the project, Serbia appeared for the first time on the European cluster 
network and intensive support to 6 prioritised clusters  resulted  in  more  than  100  SMEs  and 
over  20  partnering  organisations  (such  as  academia,  institutes,  chambers)  becoming  cluster 
members. Just as an example, Serbian Furniture Cluster came up with an innovative, award 
winning  product  that  will  be  exhibited  in  the  Milan  Furniture  Fair.  SECEP  also  supported 
establishment of the first professional Exporters association of Serbia. All of the implemented 
activities  will  further  enhance  preparation  of  the  private  sector  in  Serbia  for  the  European 
single market.  

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3.7 Sector V: Transport 

In 2011, important achievements  in this sector  concerned  the  development  of  Corridors  VII 
and X and the preparation for modernisation of railways sector. 

Corridor VII – Danube River and Corridor X 

Few projects were in 2011 under implementation to support the development of the Corridor 
VII  and  the  circulation  on  the  Danube  River.  This  included  traffic  safety  and  monitoring 
("River  Information  Services"  IPA  2007,  EUR  11  million),  preparation  of  future  River 
training  and  dredging  works  on  selected  locations  in  order  to  ensure  swift  navigation  (IPA 
2010, EUR 2.2 million), removal of unexploded ordinances (IPA 2010, EUR 3.8 million). 

All this projects once fully completed will have an important impact on the navigation on the 
Danube  and  thus  have  an  impact  on  socio-economic  development  of  the  Danube  Region  in 
Serbia as well as in Member States. 

In addition, an important project has been signed at the beginning of 2011 for the construction 
of Zezelj Bridge across the Danube River in Novi Sad (IPA 2009, EUR 26 million). The new 
bridge will combine road, rail and pedestrian bridge over the Danube and the removal of the 
existing  temporary  bridge.  This  project  is  strategic  for  both  corridors  VII  to  improve 
navigation and X with two road lanes of traffic one for each direction, two rail tracks together 
with pedestrian and cycle lanes. The project is expected to be finalised in spring 2014. 

Railways 

Support has been provided in 2011 to the harmonisation of Serbian railways sector with the 
EU acquis. One project aimed at harmonising Serbian transport legislation with the EU acquis 
(IPA  2008,  EUR  1.5  million).  The  project  started  in  2011  and  is  on-going  until  December 
2012.  Technical  assistance  has  been  also  provided  for  implementation  of  the  organisational 
reform  of  Serbian  Railways  in  line  with European  Directives  (IPA  2008,  EUR  0.5  million). 
Implementation will continue until March 2013. 

In  addition,  important  support  has  been  committed  for  the  modernisation  of  railways 
infrastructures. Technical assistance has been provided for the preparation of the railway line 
between  Novi  Sad–Subotica  (Hungarian  border)  and  railway  bypass  around  the  city  of  Niš 
(IPA 2011, EUR 8.3 million) 

3.8 Sector VI: Environment, climate change and energy 

Environment: 

In 2011 important progress has been made in the preparation of Serbia's alignment with the 
EU acquis in the field of environment. Three important Twinning projects took place in 2011 
on the preparation for the development of Natura 2000 network (IPA 2007, EUR 1 million), 

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on  hazardous  waste  management  (IPA  2008,  EUR  1.5  million)  and  implementation  of 
chemicals management system (IPA 2008, EUR 1 million). Thanks to these Twinning crucial 
pieces of legislation have been prepared as well as proper strategies to tackle these sensitive 
issues  in  the  coming  years.  Numerous  trainings  and  awareness  raising  campaign  have  been 
also organised. 

Important  support  has  been  also  provided  for  reduction  of  pollution  generated  by  thermal 
power plant Nikola Tesla. Significant reduction of the emissions was achieved thanks to the 
completion  of  the  project  "“Retrofit  of  the  electrostatic  precipitators  in  thermal  power  plant 
Nikola Tesla" (IPA 2007, EUR 11 million). This provided the fulfilment of legal obligations 
related to dust emission into the atmosphere in accordance with the legal regulations and EU 
directives  (Directive  2001/80/EC  for  large  combustion  plants).  As  a  continuation,  a  new 
project  started  to  be  implemented  in  2011  for  the  rehabilitation  of  the  electrostatic 
precipitators (IPA 2008, EUR 6.5 million). 

In  addition  equipment  has  been  provided  for  continuous  air  emission  measurement.  This 
equipment will enable continuous monitoring of emissions set by the “Directive 2001/80/EC 
for large combustion plants” (IPA 2008, EUR 1.7 million). 

Energy: 

The finalisation of IPA 2010 project “Sustainable development in the energy sector” provided 
the line ministry with Kyoto Protocol Implementation Plan in the Serbian Energy Sector and 
the Plan for the Implementation of the EU legislation regarding the quality of liquid fuels. 

The CARDS 2006 project (EUR 30 million) for the “Construction of a high voltage electricity 
transmission  line  between  Niš  and  the  former  Yugoslav  Republic  of  Macedonia  border 
(toward  Skopje)”  was  finished  in  2011.  The  project  will  help  the  creation  of  the  regional 
electricity  market  in  South  East  Europe  and  increase  stability  and  security  of  the  electricity 
system of South East Europe. 

3.9 Sector VII: Agriculture and rural development  

Throughout  2011,  many  projects  are  under  implementation,  whereas  a  few  have  been 
concluded,  such  as  Control  and  eradication  of  classical  swine  fever  (CSF)  and  rabies  (IPA 
2008,  EUR  2  million)  which  supported  the  veterinary  directorate  of  the  Ministry  of 
Agriculture  in  development  and  implementation  of  strategic  plans  for  combating  and 
eradication  of  rabies  and  CSF.  The  project  furthermore  assisted  in  development  of  tender 
documents  and  verification  of  national  aerial  vaccination  campaigns  of  foxes  against  rabies 
and delivery of equipment for surveillance of animal diseases.  The total value of the contracts 
for  combating  of  the  animal  disease  concluded  so  far  (IPA  2008,  2009,  and  2010)  is  about 
EUR 10 million. Two vaccination campaigns were organised in 2011 across the country. 

116 

 
 
Support  was  also  provided  to  the  phytosanitary  directorate  in  preparation  of  the  strategy 
including harmonisation of national legislation and procedures for registration of pesticides in 
line with EU requirements (IPA 2009, EUR 1.3 million). The latter had an impact not only on 
environment but also on food safety both for Serbian and EU citizens. 

Another important project to highlight is the support to the renewal of viticulture zoning and 
to  the  designation  for  wine  with  geographical  indications  (IPA  2008,  EUR 1.2  million). 
Thanks  to  a  Twinning  and  to  2  supply  contracts,  small  and  medium  wine  producers  in 
different  areas  of  Serbia  were  supported,  mainly  through  the  harmonisation  of  the  Serbian 
legal framework towards the EU standards. 

3.10 EU acquis and other horizontal activities 

In 2011 IPA funds supported the conduct of the population census held in Serbia in October 
2011  (IPA  2011  EUR  19.5  million).  Population  censuses  present  the  most  massive  and  the 
most  complex  statistical  actions,  and  had  to  be  conducted  in  Serbia  before  2014  as 
recommended by the UN to all countries so that census data could be comparable, not only 
methodologically  and  by  contents  but  also  by  time  period  included.  Furthermore, 
comprehensive and accurate data is a key for drafting national policies and for negotiations in 
view of EU integration.  

Further  on,  "Support  to  Civil  Society"  (IPA  2009,  EUR 2  million),  a  project  concluded  in 
December  2011helped  providing  support  for  the  active  involvement  of  civil  society  in 
Serbia’s EU integration process, to strengthen dialogue between CSOs in Serbia and the EU; 
to build social cohesion as well as a solid contribution to overcoming discrimination in Serbia 
by  promoting  tolerance  and  cultural  diversity.  Last  but  not  least,  to  enhance  cooperation 
between public institutions and civil society in Serbia. 

3.11 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.  Throughout  2011,  the  implementation  started  for  grants 
financed  by  the  Programmes  between  Serbia  and  Croatia,  Montenegro  and  Bosnia  and 
Herzegovina  respectively  and  one  transnational  interregional  programme  (South  East 
Europe). 

Following  the  launch  of  the  1st  Call  for  Proposals  in  2009  and  the  selection  of  successful 
grants in 2010, in 2011 all 3 IPA-IPA CBC Programmes were for the first time running at full 
speed,  a  significant  improvement  compared  to  last  year.  In  total  53  grants  were  awarded, 
mainly  focusing  on  environment,  social  and  economic  development  and  people-to-people 
contacts.  All  structures  were  fully  staffed  and  became  operational.  This  represented  a  great 
achievement in the preparation for decentralised management of EU funds. 

117 

 
 
All mentioned programmes were in an advanced stage of implementation over the reporting 
period.  

The impact of CBC in terms of fostering dialogue and reconciliation is huge, as it produced 
direct  positive  effects  on  both  local  and  national  level  between  the  countries..  These 
programmes help former enemies to sit together and to take joint decisions.  

Data from the 2nd Call for Proposal, launched during the summer 2011, revealed the success 
of  the  IPA  CBC  Programmes:  overall,  over  450  applications  were  received,  with  applicants 
requesting  globally  between  five  and  six  times  the  available  allocations  (only  about  1  in  5 
application will be funded):  

-  SER-BIH: 150 proposals received, i.e. an increase of 268% compared to the 1st Call 

(56 proposals received); 

-  SER-MNE: 102 proposals received, i.e. an increase of 182% compared to the 1st Call 

(56 proposals received); 

-  CRO-SER: 156 proposals received, i.e. an increase of 142% compared to the 1st Call 

(110 proposals received). 

Success stories: 

Integrated solution of border specific problems 

"Environmental Binocular" project, SER-BIH CBC Programme 

The  two  Municipalities  of  Priboj  (SER)  and  Rudo  (BiH)  have  a  very  specific  border  area: 
several  villages  in  Priboj  gravitate  for  basic  services  and  economic  activity  around  Rudo, 
which is just few kilometres away. As a consequence, members of the local communities have 
to  cross  the  state  border  several  times  per  day.  This  project  aims  to  address  the  lack  of 
organised communal solid waste collection service in villages remote from the centre of their 
Municipality.  Several  garbage  containers  and  two  trucks,  one  for  each  municipality,  were 
purchased through the project. A Memorandum of Cooperation between Priboj and Rudo will 
allow  each  of  the  two  municipalities  to  collect  solid  waste  from  nearby  villages  and  local 
communities located just on the other side of the border. 

Establishment of networks to increase competitiveness of local economies 

"Apple.net2" project, spell out CRO-SER CBC Programme 

The  project  organises  joint  workshops  and  exchange  of  best  practices  between  Serbian  and 
Croatian apple producers, promoting the creation of clusters to enhance the competitiveness 
of  the  local  productions  on  local  and  international  markets.  This  project  builds  upon  the 
results  achieved  during  the  previous  "Apple.net1",  a  national  programme  funded  in  Croatia 
from CARDS 2004. Compared to that earlier experience, the joint dimension allows a more 
enriching  experience  for  the  participants.  Croatian  producers  gained  experience  about 
relations  Serbian  producers  entertain  with  owners  of  cold  storage  facilities,  while  Serbian 
118 

 
 
 
producers  acquired  experience  from  the  Croatians  regarding  economic  cluster  formation.  A 
joint  web  site  contains  all  relevant 
information  regarding  apple  production  and 
commercialisation.  

Effective communication and strong visibility 

"UPSTREAM" project, spell out SER-BIH CBC Programme 

The  project  aims  at  improving  the  quality  of  life  of  the  mental  health  patients  through  the 
promotion of a new model of psychiatric assistance as well as a new model of re-socialisation 
of  mental  health  patients  in  their  own  society  and  community.  This  is  achieved  through 
exchange of best practices between the mental health therapists of Valjevo (SER) and Tuzla 
(BIH).  These  are  some  areas  which  are  heavily  affected  by  the  conflict  of  the  nineties  and 
where post-traumatic diseases among local communities abound. 

As part of its sensitisation campaigns, the project took advantage of the "Night of Museums” 
organised in Serbia every year to organise a “Night of Psychiatry” within the Health Centre 
Valjevo  to  raise  awareness  and  reduce  social  stigma  around  mental  health  problems.  About 
220 people visited the event, which included art exhibition of mental health patients, books, 
movies  and  photos  exhibitions.  Most  participants  entered  the  Centre  for  the  first  time  and 
some of them returned afterwards as patients. The cornerstone of the project was to promote 
the  des-institutionalisation  of  mental  health  patients  and  the  introduction  of  new  treatment 
approaches. 

4. IMPLEMENTATIONAND MONITORING MODALITIES AND STRUCTURES 

During 2011, Serbia, still being a potential candidate country, received pre-accession financial 
assistance from IPA under the first two IPA components (Transition Assistance & Institution 
Building and Cross-border Cooperation). The EU Delegation in Belgrade was still responsible 
for managing these two components.  

Serbia  has  continued  preparations  for  decentralised  management  of  EU  funds.  This  will 
enable  Serbia  to  take  responsibility  for  and  hence  increased  ownership  over,  the 
implementation  of  IPA  components.  During  2011  Serbia  continued  working  towards  this 
objective  for  Components  I,  II,  III  and  IV  by  completing  the  Gap  Plugging  phase  during 
December.  IPA  financed  technical  assistance  for  performing  the  Compliance  Assessment 
began in January 2012.  

In regard to Component V the required structures, i.e. the future paying agency and the future 
managing  authority,  are  being  established  with  the  support  of  a  Twinning  project  and  a 
technical assistance project. 

Monitoring 

119 

 
 
The monitoring of EU-funded projects is a core element of the assurance strategy of the EU 
Delegation. The monitoring of on-going contracts is carried out through 3 essential channels: 
regular monitoring,  external  monitoring (ROM) and  internal  monitoring through specific on 
the spot visits. 

Regular monitoring: 

•  Monthly  project  meetings  of  task  manager  are  held  with  the  team  leaders  of  their 
projects,  beneficiary  organisations  and  other  stakeholders.  Moreover,  quarterly 
Steering Committees are held for all institution building projects. In the case of small 
Grants  meetings  are  held  on  an  ad-hoc  basis  depending  on  possible  problems  or 
complexity  in  the  implementation  of  the  projects.  The  EU  Delegation’s  Heads  of 
Sections have regular meetings with their task managers to discuss problematic issues.  
•  Ad hoc sectorial meetings between Task Managers, beneficiary institutions and other 
stakeholders (such as other donors, contractors, project implementation units, NAO or 
DACU) are organised to discuss relevant developments concerning both tendering and 
implementation from the sectorial point of view. In the future and in the context of the 
move  towards  a  sector  approach  and  DIS,  the  introduction  of  SMSC  (Sectorial 
Monitoring Sub Committees) is foreseen. 

•  Bi-monthly bottleneck meetings are organised between the EU Delegation and SEIO 
to discuss problematic issues that cannot be resolved at the level of monthly meetings 
and Steering Committees.  
IPA/Joint  Monitoring  Committees:  twice  a  year,  programme  level  monitoring 
committees are held with the participation of headquarters at the high level to discuss 
key  issues  related  to  programme  implementation.  Corrective  actions  are  agreed  at 
these meetings where problems are identified at lower level monitoring activities. 

• 

Results Oriented Monitoring 

The  ROM  facility  is  systematically  used  by  the  EU  Delegation.  On  the  basis  of  our  risks 
analysis,  selected  contracts  are  subject  to  ROM,  giving  the  possibility  to  the  Delegation  to 
have  an  independent  opinion  on  the  efficiency  of  project  implementation  and  its  impact. 
Accordingly,  a  substantial  number  of  the  on-going  IPA  projects  will  be  monitored  by  an 
independent team of experts. 

Internal Monitoring 

A formalised Internal Monitoring mechanism was introduced in January 2011. Based on the 
risk analysis, task managers ensure regular internal monitoring of projects. Proper monitoring 
of  the  implementation  of  projects  is  one  of  the  core  duties  of  the  Operational  sections  and 
follow  up  corrective  actions  will  be    taken  in  case  of  monitoring  findings.  Findings  are 
communicated  to  the  national  authorities  for  follow  up.  As  of  2012,  follow  up  will  be 
centralised  through  SEIO  rather  than  directly  with  beneficiaries,  thereby  strengthening  its 
involvement and making them responsible as part of preparations for decentralization. 

120 

 
 
 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Serbia 

Serbia 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

172,410,580 

170,874,010 

99.11% 

136,173,774 

78.98% 

IPA 2008 

170,629,827 

132,621,599 

77.72% 

76,296,812 

44.71% 

IPA 2009 

174,415,926 

157,354,419 

90.22% 

122,245,437 

70.09% 

IPA 2010 

177,406,679 

90,957,390 

51.27% 

33,452,959 

18.86% 

IPA 2011 

181,156,810 

51,000,000 

28.15% 

20,095,851 

11.09% 

Total 

876,019,822 

602,807,419 

68.81% 

388,264,833 

44.32% 

IPA – Component I National Programme Serbia 

Serbia 

 Allocated 

Contracted  % Contracted 

 Paid 

% Paid 

IPA 2007 

164,836,352 

163,325,813 99.08% 

129,273,667 

78.43% 

IPA 2008 

168,641,314 

131,128,601 77.76% 

75,377,800 

44.70% 

IPA 2009 

170,551,643 

156,966,734 92.03% 

121,935,288 

71.49% 

IPA 2010 

174,806,679 

90,957,390 

52.03% 

33,452,959 

19.14% 

IPA 2011 

178,556,810 

51,000,000 

28.56% 

20,095,851 

11.25% 

Total 

857,392,798 

593,378,537 69.21% 

380,135,566 

44.34% 

121 

 
 
 
 
 
IPA – Component II (CBC) Programme Serbia 

Serbia 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

2,114,228 

2,088,198 

98.77% 

1,470,107 69.53% 

IPA 2008 

1,988,513 

1,492,998 

75.08% 

919,012 

46.22% 

IPA 2009 

3,864,283 

387,686 

10.03% 

310,148 

8.03% 

IPA 2010 

2,600,000 

IPA 2011 

2,600,000 

0 

0 

0.00% 

0.00% 

0 

0 

0.00% 

0.00% 

Total 

13,167,024 

3,968,881 

30.14% 

2,699,268 20.50% 

122 

 
 
 
 
 
 
BOSNIA AND HERZEGOVINA 

1. SUMMARY 

Throughout 2011, EU financial assistance to Bosnia and Herzegovina played an important 
role  to  support  the  country  on  its  way  towards  European  integration.  IPA  continued 
supporting the country's efforts 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.  2011  priorities  strongly  focused  on  public  administration  reform  and  the 
strengthening  of  the  rule  of  law,  in  addition  to  alleviating  the  heavy  consequences  of  the 
economic  and  financial  crisis.  The  EU  contribution  allocated  in  2011  was  EUR  92.885 
million. 

The implementation of EU financial assistance in 2011 showed tangible results, including the 
adoption  of  the  revised  action  plan  for  the  public  administration  reform  strategy,  the 
introduction of the electronic publication of public procurement notices, the installation of 34 
permanent  GPS  Station  Networks  throughout  the  country,  which  facilitated  the  accurate 
measuring  of  land  parcelling.  Further  tangible  results  were  the  creation  of  a  Small  and 
Medium Enterprise (SME) Council, the construction of sewage collectors in Zivinice, and the 
successful implementation of the first ever country-wide rabies vaccination campaign. 

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document 

The strategic priorities identified in the 2011-2013 MIPD are supporting the strengthening of 
the  rule  of  law,  improving  the  capacity  and  efficiency  of  the  public  administration,  and 
supporting  social  and  economic  development.  The  following  sectors  of  interventions  and 
specific objectives have been identified: 

- 

Justice  and  home  affairs  with  the  objective  of  assisting  the  country  to  reform  its  justice 
sector and to fight against corruption and organised crime. 

-  Public Administration Reform with the objective of setting up a professional civil service 
and  to  improve  the  functioning  of  the  institutions  at  all  levels  and  to  adopt  the  legal 
framework for public financial management in compliance with EU standards. 

-  Private sector, transport and environment sectors with the objective of developing the SME 

sector and investing in transport and environment infrastructure. 

-  Social  Development  with  the  objective  to  alleviate  unemployment  and  to  reform  the 

education system. 

123 

 
 
 
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 were identified as key 
challenges in the Enlargement Strategy 2010–2011. Justice and Home Affaires were chosen 
as  a  pilot  for  the  sector  approach,  because  it  fulfilled  the  basic  requirements  for  sector 
approach, in particular the adoption of relevant strategies, the availability of national funding 
and the interest of multiple donors to engage in the sector.  

The  Europe  2020  agenda  offers  the  enlargement  countries  an  anchor  for  reforms.  IPA 
supports Bosnia and Herzegovina to follow priorities of the 2020 agenda, in particular where 
it offers support for the environment, for promoting social inclusion and for fighting poverty. 

Table 1: MIFF20 allocations per component, in EUR million  

Component 

2011 

2012 

2013 

2011-2013 

I – Transition Assistance and Institution Building 

102.6
8 

104.67 

106.8
7 

314.22 

II – Cross-border cooperation 

4.75 

4.80 

4.94 

14.49 

TOTAL 

107.4
3 

109.47 

111.8
1 

328.71 

2.2 Programming  

2.2.1 Component I    

The  programming  exercise  based  on  a  series  of  consultation  workshops  in  June  2010,  to 
which national stake holders, selected donors and civil society organisations were invited to 
participate.  Workshops  were  held  in  the  areas  of  social  inclusion,  SMEs,  education  and 
employment,  civil  society,  judiciary,  law  enforcement,  public  administration  reform, 
environment,  transport  and  energy.  The  workshops  identified  strategic  objectives,  expected 
results, benchmarks and indicators for financial assistance in the period 2011-2013. 

The Commission ensured the cooperation and coordination with the national and international 
stakeholders,  including  Member  States,  International  Finance  Institutions,  civil  society,  and 

20Communication 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. 

124 

 
 
 
                                                            
other  donors  through  taking  lead  in  the  consultations  in  sector  working  groups,  regular 
coordination  meetings  with  Member  States  and  through  participation  in  the  Donor 
Coordination  Forum  chaired  by  the  Ministry  of  Finance.  The  coordination  increased  the 
effectiveness and the efficiency of the programming and implementation of assistance through 
actively  developing  synergies  between  projects.  Other  donors  could  plan  their  interventions 
based on IPA priorities. For example, the Council of Europe Development Bank is preparing 
a  programme  to  support  social  inclusion  and  integration  at  schools  which  will  be 
complementary  to  planned  IPA  interventions  on  schools  reconstruction  under  the  IPA  2013 
national programme. 

The  active  participation  of  the  beneficiaries  in  the  programming  and  identification  exercise 
since the very beginning of the exercise took into account the overarching lesson learned in all 
previous  assistance  programmes,  in  particular  that  assistance  projects  did  not  achieve  the 
expected results because of an insufficient sense of ownership on the part of the beneficiaries. 
However,  as  experienced  in  the  course  of  the  2011  programming  exercise,  even  the  active 
participation of the beneficiaries in the early stage could not avert later political disagreement 
on already agreed projects.   

The  Commission  acted  as  a  mediator  between  high  political  levels  and  brokered  a 
compromise  which  included  agreement  on  the  most  of  the  projects,  some  of  them  with 
modifications  to  satisfy  concerns  raised  by  the  Republika  Srpska.  There  was  ultimately  no 
agreement on the usage of EUR 8.2 million from the 2011 basket so the remaining funds were 
reallocated  to  increase  the  funding  of  the  demining  activities  (by  EUR  2  million),  of  the 
project  preparation  facility  (by  EUR 1.2 million)  and  by  allocating  additional  funds  to  the 
multi-beneficiary  programme  to  create  a  Bosnia  and  Herzegovina  window  in  the  Sarajevo 
Process  on  refugee  return.  The  Commission  Implementing  Decision  on  a  budget  of  EUR 
91.28 million was adopted on 5 December 2011. 

The  main  results  expected  from  the  2011  programme  are  the  alignment  of  the  legislative 
framework  with  the  EU acquis  in  sectors  relevant  to  EU  accession,  civil  service  reform,  an 
improved legal framework for public procurement and public finance management, reform of 
judiciary and law enforcement, promotion of SME development and support for Bosnia and 
Herzegovina adhering to (or implementing?) its obligations under the Interim Agreement and 
the Stabilisation and Association Agreement. Another relevant result was the development of 
a strategic framework for the transport sector, the improvement of transport and environment 
infrastructure,  and  the  reform  of  the  education  and  social  protection  systems.  Last  but  not 
least, the judicial reform was selected as a pilot for a sector approach. 

Emphasis was placed on the selection of interventions resulting from reform priorities in the 
Enlargement Package, in particular where the enlargement strategy 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  at  very  high  levels 
and  fiscal  adjustment  measures,  as  well  as  economic  reforms  have  to  be  pursued  with 

125 

 
 
determination  to  enable  the  country  to  recover,  and,  over  the  long  term  to  cope  with  the 
competitive pressure and market forces of the Union.  

The  IPA  2011  national  programme  was  programmed  to  be  implemented  through  service, 
supply,  and  works  contracts,  a  number  of  Twinning  projects  with  Member  States  and  a 
number of Joint Management Agreements  with the Council of Europe, the EIB, the EBRD, 
and  the  World  Bank.  Considering  the  weak  public  financial  management  and  the  non-
availability of sector and macro-economic policies, budget support was not an option. 

The programming exercise for the IPA 2012 and IPA 2013 national programme kicked-off on 
17  November  2011  in  Sarajevo,  where  the  Commission  presented  the  key  priorities,  in 
particular  the  sectors  justice  and  home  affairs,  public  administration  reform,  private  sector 
development, transport, social development,  

Table  2:  Indicative  financial  allocations  for  the  year  under  the  National  Programme,  per 
priority axis and per project, in EUR million: 

Priority Axis  Projects 

Political Criteria  

01.19.10  Strengthening  social  protection  system  at  all  levels 
of governance  

01.23.03 Support to the Justice Sector Reform  

01.32.02 Strengthening Public Financial Management  

01.34.01 Public Administration Reform  

01.36.12  Confidence  building  by  demining  and  preservation 
of cultural heritage 

Economic Criteria  

02.07.05 Support  to the improvement of the institutional and 
legal framework as well as coordination and harmonisation of 
private sector development related public policies  

Budget  

30.25 

7.50 

5.20 

4.00 

4.05 

9.50 

10.00 

7.00 

02.20.06 Support to the Local Economic Development in BiH  3.00 

Ability to assume the obligations of membership 

03.15.11  Support to energy market liberalisation  

45.60 

2.50 

03.21.07  Modernization  and  Development  of  Transport  14.00 

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Infrastructure  on 
Observatory (SEETO) Comprehensive Network in BiH  

the  South  East  Europe  Transport 

03.24.04 Support to the Law enforcement infrastructure  

03.26.09    Strengthening  human  resources  and  institutional 
capacities for better employability  

9.50 

3.50 

03.27.08  Support  to  infrastructure  development  and  the 
approximation of environmental standards  

16.10 

Supporting programmes  

04.65.14  Participation  of  Bosnia  and  Herzegovina 
European Union Programmes  

5.43 

in 

2.40 

04.72.13  Project  Preparation/General  Technical  Assistance 
Facility  

3.03 

TOTAL 

91.28 

2.2.2 - Component II 

The  cross-border  cooperation  programmes  between  Bosnia  and  Herzegovina  and  its 
neighbours  Croatia,  Montenegro  and  Serbia  were  revised  in  2011  to  include  the  financial 
allocations for the period 2011-2013, as adopted in the MIPD 2011-2013.  

Some progress on the decentralisation of the implementation system (DIS) for the component 
II can be reported. The Council of Ministers adopted the Decision on the Establishment of the 
Operating  Structure  in  September  2011,  and  the  formal  notification  of  this  decision  by  the 
National  Authorising  Officer  (NAO)  was  made  in  December.  The  Control,  Finance  and 
Contracting Unit of the Ministry of Finance has assumed the role of the First Level Controller 
with the assistance of the EU framework contract for the 19 contracts under the IPA Adriatic 
CBC programme, which were implemented in the shared management mode.  

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 Success stories 

In  2011,  the  Commission  implemented  four  demining  projects  with  a  budget  of 
EUR 3.1 million. Three of the projects focused on reducing suspected areas through technical 
survey  and  clearance  activities  of  mines,  cluster  bombs,  and  other  unexploded  devices.  The 
result  was  the  clearance  of  1.2  million  square  meter  land.  Direct  beneficiaries  were  the 
inhabitants of the affected areas, but also all citizens and visitors to BiH as well as companies 

127 

 
 
 
 
 
 
 
operating  in  the  area.  Those  projects  saved  lives  (the  Progress  Report  2011  reported  6 
landmine accidents) and supported economic development and prosperity. 

In addition to the three "hard demining projects", the EU funded a "soft" demining project in 
the amount of EUR 0.2 million. The project helped municipalities to carry out their mine risk 
education  plans  focused  on  at-risk  population  in  contaminated  areas.  The  project  visibly 
marked the risk areas and supported capacity building in municipalities. 

Beside  the  humanitarian  aspect  of  demining,  there  is  direct  link  to  economic  and  ecologic 
development.  Sectors  like  agriculture,  tourism,  construction,  transport,  water  management, 
agriculture, and employment depend on demining and the release of land resources. 

2011 marked the first year of implementation of the 5-year Western Balkans animal disease 
eradication  programme.  The  EU  allocated  EUR  30  million  for  the  fight  against  animal 
diseases  in  the  Western  Balkans  region  from  IPA  national  and  regional  programmes,  with 
EUR 6 million allocated for Bosnia and Herzegovina for the 5-year programme. In BiH, the 
first ever oral vaccination campaign against rabies was completed in December 2011. The aim 
was  to  improve  animal  health  and  to  fight  against  serious  health  risks  for  the  population, 
caused by rabies outbreaks. The vaccination campaigns, which will be continued during the 
next  five  years  throughout  the  Western  Balkans,  will  help  to  eradicate  the  disease  in 
neighbouring Member States.  

3.2 Overview of the implementation status of the different instruments  

The implementation of pre-IPA instruments in 2011 was almost completed with the exception 
of one PHARE project on the reconstruction of architectural heritage in Stolac, with a budget 
of  EUR 0.1 million.  The  project  started  in  July  2011  and  is  expected  to  be  completed  by 
January 2014.  

On IPA, the positive trend on increasing commitment and disbursement figures of 2009 and 
2010 did not continue in 2011. There were several reasons for the decreasing rates: 

(a)  Lengthy  adoption  procedures  on  the  side  of  Bosnia  and  Herzegovina  on  financing 
agreements on IPA assistance. 

(b) More than 50 % of the budget of the IPA 2010 national programme (EUR 51.6 million), 
which  was  planned  for  commitment  in  2011,  was  allocated  to  large  scale  infrastructure 
projects  in  joint  management  with  the  European  Bank  for  Reconstruction  and  Development 
(EBRD),  the  European  Investment  Bank  (EIB)  and  the  World  Bank  (WB).  However,  the 
conclusion  of  financing  agreements  between  Bosnia  and  Herzegovina  and  the  Banks  was 
delayed. 

In addition to the before mentioned high level meeting in November 2011, the Commission, 
the EBRD, the EIB and the WB sent a joint letter to the Chairman of the Council of Ministers 
and  the  Prime  Ministers  of  the  entities,  in  order  to  draw  their  attention  on  the  problems  of 
delays  in  the  adoption  of  financing  agreements  and  asked  to  review  the  possibility  to 

128 

 
 
accelerate the ratification procedures and to improve the internal coordination. 

In  IPA  component  II,  the  implementation  of  the  bilateral  cross-border  programmes  is 
continuing, with the second calls for proposals launched for all three programmes in 2011.  

Coordination and sharing of information proved to be valuable tools to enhance the capacities 
of  the  national  Operating  Structures  and  should  be  enhanced  in  the  future.  The 
implementation of programmes was coordinated through Technical Working Group meetings, 
comprising  representatives  of  EU  Delegations  in  the  region,  and  the  Technical  Assistance 
project CBIB II. 

3.3 Sector I: Public Administration Reform 

The main needs identified in the current and previous MIPDs were the implementation of the 
public  administration  reform  (PAR)  strategy,  the  reform  of  the  civil  service  and  the 
advancement  of  the  public  internal  financial  control.  The  needs  identification  followed  the 
conclusions of the Enlargement Packages, which ask Bosnia and Herzegovina to improve the 
functioning of its institutions to be in a position to adopt, implement and enforce the laws and 
rules of the EU. 

There  were  positive  developments  in  public  administration  reform  (PAR).  An  IPA  2007 
project  (EUR 1.8  million),  which  was  completed  at  the  end  of  2011,  supported  the  PAR 
Coordination Office (PARCO) to develop and adopt the review of the PAR implementation 
strategy, to develop and to adopt a revised PAR Action Plan , and supported PARCO in the 
management  of  a  multi-donor  Fund.  The  Fund  is  sustainable  and  has  seen  an  increase  in 
resources and the number of donors subscribing to it. 

Another MIPD priority and an acquis-related area supported by IPA 2007 was Public Internal 
Financial Control (EUR 1.1 million). Two projects supported capacity building of the Central 
Harmonisation Units in the state and entities' ministries of finance, their Coordination Board, 
trained  internal  auditors  and  controllers  and  supported  the  development  of  primary  and 
implementing legislation (amendments to internal audit laws and laws on financing, financial 
management  and  control  legislation,  rules  of  procedures,  charters  and  codes  of  conduct). 
Internal  control,  together  with  external  audit,  comprised  the  substance  of  Chapter  32  of 
accession  negotiations.  All  activities  were  coordinated  with  assistance  of  the  Swedish 
International  Development  Agency  (SIDA)  to  the  Supreme  Audit  Institutions,  with  USAID 
assistance  to  internal  audit  functions  in  public  enterprises  and  SIGMA.  Assistance  will 
continue over the next years.  

During 2011 twelve Twinning projects have achieved satisfactory results concerning acquis-
related sectors (Integrated Border Management, Customs and Taxation, Statistics, Insurance, 
European Common Aviation Area, and Transport, to name a few.).  

Beside  the  regular  assessments  of  policy  areas  of  BiH  administration,  SIGMA  provided 
129 

 
 
assistance for the conduct of a peer review of the public procurement system, a peer review of 
the Supreme Audit Institutions, commented the draft law proposal for public procurement, the 
draft amendments to the entities civil service laws, the strategy for civil servants training in 
the Federation of Bosnia and Herzegovina (FBiH) and contributed to public internal financial 
control. In addition, SIGMA received ad hoc requests for strategic advice.  

TAIEX  implemented  14  national  events  and  18  multi-country  events  including  workshops, 
expert missions involving MS-Experts and study visits to MS- institutions. 

The EU supports Bosnia and Herzegovina in its participation in EU programmes, such as the 
EU's  Seventh  Framework  Programme  for  Research  (FP7),  the  Culture  Programme,  and  the 
Europe for Citizens Programme.  

3.4 Sector II: Justice, Home Affairs and Fundamental Rights 

The main needs of the Justice Sector identified in the MIPD have been addressed by projects 
supporting the efficiency, the effectiveness, and the independence of the judicial system. An 
important project was the support for the judiciary which advanced the automation of courts 
and prosecutor offices and reduced the number of small claims cases in first instance courts. 
Thus  it  supported  the  MIPD  objective  to  reduce  the  length  of  court  proceedings  and  the 
backlog of cases. Another significant activity in 2011, co-financed by several Member States, 
was the support for the processing of war crime and organised crime.  

MIPD  priorities  in  the  Home  Affairs  sector  were  addressed  by  the  implementation  of  the 
electronic  data  exchange  system  for  police  and  prosecutor  registries,  which  provides 
systematic access to data necessary for the fight against serious and organised crime. A joint 
training  project  for  the  State  Investigation  and  Protection  Agency  (SIPA)  Financial 
Intelligence  and  Crime  Investigation  Units,  prosecutors,  financial  regulatory  agencies  and 
other  relevant  institutions  aimed  to  improve  the  reporting  of  suspicious  transactions  and  of 
financial investigations to support the fight against money laundering.  

3.5 Sector III: Private sector development 

MIPD priorities in the private sector development have been addressed by a project on local 
and  regional  economic  and  SME  development,  which  provided  a  functional  voucher  scheme 
mechanism  for  a  SME  consultancy  pilot  initiative  for  regional  and  local  development  and  a 
project pipeline for community level interventions.  

The  SME  policy  support  development  project  established  state  level  structures  (SME 
Council), prepared a strategic framework for the period of 2012-2015, and the approximation 
with the SME Charter and Small Business Act principles. IPA support to competitive sectors 
focused  on  tourism  because  of  its  potential  for  growth  and  job  creation.  This  was 
complemented with a grant scheme fund for direct support for public and private partnerships 

130 

 
 
at community level in sectors with high potential to export and to create jobs (metal, wood, 
agriculture/food production, tourism). 

The Turn-Around Management and Business Advisory Services (TAMBAS) programme of the 
EBRD demonstrated an effective mechanism for counselling and business planning. 

Further  activities  addresses  the  alignment  with  EU  central  banking  standards,  provided 
capacity  building  for  the  three  insurance  supervision  agencies  and  strengthened  the  capital 
base for the deposit insurance agency. 

3.6 Sector IV: Transport 

The  EU  invested  EUR  1  million  in  an  IPA  2007  project  to  provide  technical  assistance  to 
railway authorities, in particular to the Railways Regulatory Board to harmonise regulations 
for  the  maintenance  of  railway  infrastructure  and  rolling  stocks  with  EU  directives  and 
technical  specifications  of  interoperability.  Some  of  the  regulations  originate  back  to  the 
1930s, were never updated and represent a serious obstacle for the implementation of safety 
directives,  the  upgrading  of  railway  infrastructure,  and  the  opening  of  the  railway  market. 
This  IPA  project  supported  the  MIPD  objective  to  create    a  functioning  institutional  and 
regulatory framework for all transport areas, and in particular opening of the railway transport 
market and improvement of the railway safety. 

Transport is a key element in the EU's cooperation with its neighbouring countries to promote 
sustainable economic growth, trade and cultural exchange. Candidate and potential candidate 
countries are called to  align  themselves with EU legislation  on  transport in the interest of a 
well-functioning  internal  market.  Bosnia  and  Herzegovina  is  a  transit  country  for  the  trans-
European networks, in particular for the Corridor Vc from Budapest to the harbour of Ploče in 
Croatia.  On  the  corridor  the  EU  supported  the  modernisation  of  the  railway  network 
(EUR 9 million,  joint  management  with  the  EIB)  and  the  construction  of  the  Mahovljani 
highway exchange (EUR 5 million, joint management with the EBRD). 

 3.7 Sector V: Environment and climate change 

In  the  water  quality  sector,  the  IPA  2007  assistance  ‘Support  for  Bosnia  and  Herzgovina 
Water Policy’ (EUR 1 million) provided outputs which are the basis for the sector’s acquis-
related reforms. A water policy and a series of strategies on implementation of the directives 
on drinking water, urban wastewater treatment, and flood management were prepared. In the 
pollution prevention and control sector, the IPA 2007 Project ‘Support for the Implementation 
of the Directive on Integrated Pollution Prevention and Control’ (EUR 1.2 million), expected 
to  finish  by  February  2012,  and  prepared  the  implementation  plan  for  the  directive.  The 
progress  in  these  sub-sectors  served  as  a  basis  to  move  forward  into  the  next  phase  of  EU 
assistance to be implemented under the IPA 2008 programme. This involved the preparation 
of  an  Environment  Approximation  Strategy  including  climate  change,  and  a  pipeline  of 

131 

 
 
projects for investment in the post-2014 period. This assistance is being provided through the 
‘Support  for  Bosnia  and  Herzegovina  Environment  Institutions  and  Preparation  for  Pre-
accession Funds’, a technical assistance project of EUR 2 million which started in late 2011. 
The  interventions  supported  the  MIPD  Environment  sector  objective  "transposition  and 
implementation of the environmental acquis and other international obligations." 

3.8 Sector VI: Social development 

The  MIPD  sector  objectives  to  improve  the  social  protection  system  at  all  levels  of 
governance and addressing specific needs of vulnerable groups, particularly children, was in 
the  focus  of  IPA.  A  Social  Protection  and  Social  Inclusion  project  for  children  Phase  III, 
implemented  by UNICEF, aimed strengthening the  capacities of social service providers, in 
particular  the  application  of  a  needs-based  approach  for  social  services.  Support  for 
vulnerable groups, including Roma, was targeted with a project "Support for National Action 
for  Roma  inclusion"  implemented  under  IPA  2008  and  with  a  project  "Reconstruction  of 
small  infrastructure  in  support  of  sustainable  return"  implemented  under  IPA  2007.  This 
helped 40 families to return to their re-constructed pre-war homes. 

In  the  education  sector,  the  focus  of  assistance  concerned  the  reform  of  higher  education 
through  the  implementation  of  two  IPA  2007  projects.  The  process  of  harmonisation  of  the 
curricula of eight public universities was supported. The results were uneven because in some 
cantons  the  relevant  legislation  did  not  exist.  However,  capacity  building,  management 
training and tailor made recommendations for further institutional development of each public 
university and other bodies were provided. An attempt to draft a state level law on recognition 
of diplomas and qualifications failed due to political disagreements. However, guidelines for 
recognition in line with the Lisbon Convention were drafted and adopted by all Ministers of 
Education.  A  Baseline  Qualifications  Framework  for  a  national  system  of  educational 
qualifications was adopted by the Council of Ministers. A strategy for entrepreneurial learning 
was drafted and adopted by the Council of Ministers.  

In the sector labour and employment, the focus was on capacity building of public employment 
services  implemented  with  an  IPA  2007  project  "Improving  active  labour  market  measures". 
The on-going project "Institutional and capacity building of the employment sector ", funded 
from IPA 2009, aims to improve the institutional capacity of labour market management and 
employment service delivery at national, entity- and sub-entity levels. 

Although the MIPD did not specifically address the health sector, the EU provided support for 
the  creation  of  basic  conditions  in  the  sector.  A  project  dealing  with  the  reform  of  the 
financing of secondary health care, funded under IPA 2008, provided assistance to the health 
authorities in introducing the output based system of financing, which will contribute to more 
cost-effective  and  efficient  secondary  health  care,  based  on  health  care  standards.  A  project 
financed  under  the  IPA  2007  budget  introduced  a  system  of  data  collection  and  statistical 
reporting in public health in line with the requirements of WHO and EUROSTAT. Reporting 
for  international  purposes  on  the  health  status  of  the  population  is  improving.  The  first 
National Health Report for Bosnia and Herzegovina was published in 2011.  

132 

 
 
3.9 Sector VII: Acquis-related and other actions 

There  is  less  progress  concerning  agriculture  and  rural  development  due  to  political 
disagreements  on  the  degree  of  autonomy  of  rural  development  programming  and  budget 
control by the entities vis-à-vis the state level.  

2011 saw the implementation of assistance for food safety (IPA 2007, EUR 1.0 million) and 
phytosanitary (IPA 2008, EUR 0.8 million) where support was provided to approximate to the 
acquis.  Results  were  the  preparation  of  an  implementing  legislation  and  of  laboratory 
investment strategies.  

The MIPD objective confidence building and promoting reconciliation has been supported by 
the  reduction  of  suspected  mined  or  at  risk  areas,  to  enable  the  return  of  population  to 
demined  areas,  improved  safety  and  protection  of  citizens  against  abandoned  mines  and 
unexploded explosive ordnances, reduction of mine casualties and assistance to mine victims, 
creating  the  preconditions  for  sustainable  socio-economic  development  in  demined  areas 
through implementation of the IPA 2007 and 2008 demining projects.  

3.10 Cross-border cooperation  

Bosnia  and  Herzegovina  participates  in  six  Programmes:  IPA  Adriatic  CBC  Programme  (shared 
management, 19 on-going contracts), three bilateral CBC programmes with neighbouring countries: 
Croatia, Serbia and Montenegro, and two trans-national programmes: South-East Europe (SEE) and 
Mediterranean  trans-national  programme  (MED).  In  2011,  60  contracts  were  being 
implemented.  The  2007-2010  programmes  have  the  following  allocations:  Croatia-Bosnia  and 
Herzegovina  EUR 4 million, Serbia-Bosnia  and  Herzegovina  EUR  2.8  million,  Bosnia  and 
Herzegovina-Montenegro  EUR  2  million,  ERDF  SEE  EUR 1.8  million,  and  ERDF  MED 
EUR 0.3 million. 

There  was  a  visible  progress  in  the  implementation  of  the  bilateral  CBC  programmes.  The 
preparation and publication of the second calls for proposals under bilateral programmes with 
the neighbouring countries has provided opportunity to apply lessons learnt from the previous 
calls, such as increase of the maximum amount of grants, merging evaluation steps in order to 
accelerate the selection procedure, and inclusion of cross-cutting issues in the scoring lists of 
some calls.  

Some recently completed projects from the first call for proposals in the bilateral programmes 
with  Montenegro  and  Serbia  can  be  regarded  as  success  storys.  The  close  cooperation  of 
institutions  on  both  sides  of  the  borders  successfully  led  to  achievement  of  the  expected 
results  in  the  project  'Selective  waste  collection'  implemented  by  Municipality  Modrica  in 
BiH  and  Municipality  Ub  in  Serbia.  The  project  reduced  the  amount  of  disposed  waste, 
enabled  the  development  of  recycling,  improved  the  system  of  waste  management,  reduced 
the negative impacts on the environment, and raised the public awareness of environment and 
thus  contributed  to  the  improved  quality  of  the  border  area  environment  as  an  economic 
resource as well as created cooperation for joint protection initiatives in the future. 

133 

 
 
Another  successful  project  “Social  cohesion  and  cultural  exchange  through  institutional  and 
people-to-people interventions” was implemented by the Centre for Democratic Transition in 
Montenegro  and  the  Centre  for  Promotion  of  Civil  Society  in  BiH.  Through  education  and 
training, the project encouraged self-development of project participants and stimulated them 
to play active role in the socio-political development of their countries and communities in the 
future.  Having  in  mind  the  post-conflict  reality in which the BiH society lives, these young 
people crossed the real and imaginary borders and became friends with their peers at the other 
side.  

4. IMPLEMENTATION AND MONITORING MODALITIES AND STRUCTURES 

Implementation  of  Component  I  and  II  programmes:  No  change  compared  to  previous 
reporting. 

Multi-Beneficiary programmes: No change compared to previous reporting. 

Monitoring: During 2011, the Commission monitored all active contracts through field visits, 
on the spot checks and verification of progress of construction works and delivery of supplies.  

With regard to CBC, the Delegation engaged external monitoring experts through ATA 2011 
funds  to  monitor  all  55  contracts  in  the  second  half  of  2011,  after  first  progress  reports  for 
most of the contracts were delivered.  

Implementation  Reviews  took  place  in  April  and  October  2011  on  the  implementation  of 
ongoing projects and on the project pipeline with a focus on the problematic issues.  

The bi-annual IPA Monitoring Committees took place in July and December 2011. 

Thirty-six  projects  of  total  value  of  EUR  65  million were subject to external result-oriented 
monitoring (ROM).  

The  average  performance  score  is  2.84  on  a  scale  from  1  (serious  deficiencies)  to  4  (very 
good).  The  projects  "Programme  of  technical  assistance  for  the  Central  Bank  of  BiH",  the 
"Spatial information services for BiH – phase two – digital orto-photo maps", the "Support to 
the BiH Judiciary", the "Support to implementation of the IBM Strategy and Action Plan" and 
the "Support to trade policy and capacity building in BiH" were assessed as best, proving to 
be very relevant, effective and sustainable (average score of these five projects' performance 
is 3.5). 

The  five  performance  criteria  against  the  scores  provided  in  the  ROM  reports  indicate  that 
projects are generally well designed (91% of 36 monitored projects were graded either A or B 
for  relevance),  efficiency  of  project  implementation  is  reasonable  (73%  of  36  projects  were 
graded  A  or  B)  as  well  as  impact  (70%  of  36  projects  were  graded  A  or  B),  while  project 
effectiveness appears problematic (42% of 36 projects were graded C) and the sustainability is 
questionable (49% of 36 projects were graded C).   

134 

 
 
PART II - FINANCIAL DATA 

On implementation of assistance at the end of December 2011 

IPA Bosnia and Herzegovina 

Bosnia 
Herzegovina 

& 

 Allocated 

Contracted 

% 
Contracted 

 Paid 

% Paid 

IPA 2007 

56,602,436 

54,734,316 

96.70% 

46,979,146 

83.00% 

IPA 2008 

74,257,435 

57,771,852 

77.80% 

35,649,614 

48.01% 

IPA 2009 

87,987,738 

56,774,550 

64.53% 

31,478,627 

35.78% 

IPA 2010 

107,455,724 

42,328,794 

39.39% 

12,372,915 

11.51% 

IPA 2011 

99,975,106 

4,889,987 

4.89% 

4,400,988 

4.40% 

Total 

426,278,439 

216,499,499 

50.79% 

130,881,291 

30.70% 

IPA – Component I National Programme Bosnia and Herzegovina 

BiH 

 Allocated 

Contracted  % Contracted 

Paid 

% Paid 

IPA 2007 

49,736,394 

47,925,528 

96.36% 

40,605,690 

81.64% 

IPA 2008 

66,754,783 

51,284,476 

76.83% 

29,524,176 

44.23% 

IPA 2009 

80,500,000 

50,747,014 

63.04% 

25,795,156 

32.04% 

IPA 2010 

99,954,423 

37,027,493 

37.04% 

7,336,679 

IPA 2011 

92,885,119 

0 

0.00% 

0 

7.34% 

0.00% 

Total 

389,830,719 

186,984,512 47.97% 

103,261,702 

26.49% 

135 

 
 
 
 
 
IPA – Component II (CBC) Programme Bosnia and Herzegovina 

BiH 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

1,453,020 

1,395,765 

96.06% 

960,435 

66.10% 

IPA 2008 

1,506,080 

790,633 

52.50% 

428,694 

28.46% 

IPA 2009 

1,560,202 

100,000 

6.41% 

52,312 

3.35% 

IPA 2010 

2,200,000 

IPA 2011 

2,200,000 

0 

0 

0.00% 

0.00% 

0 

0 

0.00% 

0.00% 

Total 

8,919,302 

2,286,398 

25.63% 

1,441,441 16.16% 

136 

 
 
 
 
 
 
 
KOSOVO* 

1. SUMMARY 

The European Union Office in Kosovo (EUO) continued managing the implementation of EU 
assistance to Kosovo. It managed to exceed its financial targets, both in terms of contracts and 
payments. The preparations of the IPA 2011 Annual Programme (AP) for Kosovo have been 
completed,  allocating  EUR  62.900  million,  and  programming of the  2012  and  2013  Annual 
Programmes  has  started.  Kosovo's  participation  in  IPA  Cross-Border  Cooperation  (CBC) 
programme  proceeded  well  in  2011;  the  first  Financing  Agreements  for  Programmes,  with 
preparations  of  the  CBC-programmes  with  Albania  and  the  former  Yugoslav  Republic  of 
Macedonia  were  signed,  as  well  as  an  additional  programme  with  Montenegro  which  was 
finalised  and  subsequently  adopted  in  December  2011.  In  terms  of  projects,  important 
successes  include  the  reconstruction  of  the  last  five  bridges  on  the  M2  Road  connecting 
Kosovo  to  the  former  Yugoslav  Republic  of  Macedonia.  In  addition,  during  2011,  Kosovo 
carried  out  the  first  population  and  housing  census  after  almost  three  decades,  providing 
valuable  statistical  information  on  the  population  and  the  living  conditions,  important  for 
policy planning in the coming decade. The latter was funded through a trust fund co-financed 
by IPA 2010. 

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-annual Indicative Planning Document  

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  purpose  of  the  Multi-annual  Indicative  Planning  Document 
(MIPD) 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 annual progress reports and Kosovo's own strategies. The Government of  Kosovo,  local 
stakeholders, EU Member States and other donors have all been consulted in the design of the 
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  would  be  targeted to  support  the  rule  of  law, 

* 
the ICJ Opinion on the Kosovo declaration of independence. 

 This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and 

137 

 
 
 
 
                                                            
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  to 
move 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 reflect Kosovo's own European Agenda. 

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) 

2.2 Programming  

2.2.1 Component I    

The  2011  IPA  Annual  Programme  (AP)  was  presented  to  the  IPA  Committee  in  September 
2011 and the Financing Agreement was signed in December 2011. This Annual Programme 
had been prepared by the EU Office in close coordination with both the Ministry for European 
Integration and all beneficiaries.  

IPA  2011  continued  to  support  the  rule  of  law,  good  governance,  public  administration 
reform,  communities  and  education.  It  also  addresses  socio-economic  issues,  such  as 
employment  creation  and  regional  economic  development  (including 
infrastructure, 
agriculture and rural development). Lastly, the programme addressed the approximation of the 
legislation to European standards, including on veterinary and food safety and energy sector 
reform. 

The  government  has  increased  its  overall  efforts  in  terms  of  donor  coordination.  The 
Regulation  on  Donor  Coordination  was  adopted  by  the  government  meeting  in  June  2011. 
The aim of this regulation is to increase the role of the government on the coordination of the 
foreign  aid,  creating  a  system  that  ensures  effectiveness  and  transparency  between  the 
government  and  donor  activities.  Subsequently,  sector  and  sub-sector  working  groups  were 
better coordinated.  

The  Aid  Management  Platform  continued  to  support  the  government  in  improving  aid 
management and donor coordination, aiming mainly at reducing transaction costs in gathering 
and  reporting  on  donor  assistance,  improving  the  alignment  of  donor  assistance  to  the 
government’s  sector  wide  strategies  and  at  providing  up-to-date  and  publicly  available 
information on on-going and planned aid activities. 

138 

 
 
A concrete example of functioning donor coordination is the support to Office of the Auditor 
General  (OAG).  The  EU-funded  Twinning  was  completed  during  2011  and,  in  agreement 
with  the  Swedish  Development  Agency  (SIDA),  it  was  decided  that  SIDA  will  provide 
'bridging'  support  to  OAG  until  the  new  Twinning  financed  under  IPA  2011  will  start 
(expected: Q3 2012).  

Another good example of coordination was the support to the Public Procurement sector. The 
EU Office throughout 2011 persistently worked with all relevant donors to ensure and agree 
that there was no duplication/overlap. Consequently, it was agreed that the World Bank would 
cover  e-procurement,  while  the  EU  redirected  its  efforts  towards  other  aspects  of 
procurement.  

Table 2: Indicative financial allocations for the year 2011 under the National Programme, per 
priority measure identified in the MIPD 2011-2013, in EUR million  

Priority 
Measures 

Projects 

Justice and Home Affairs  

Budget  

8.90 

01/2011/1:  Border  Management  Readmission 
Reintegration  

and 

3.70 

02/2011/1: Financial Crime and Road Policing 

03/2011/1: Judiciary 

Private Sector Development, Smart, Sustainable and Inclusive Growth  

04/2011/2: Regional Economic Development 

05/2011/2:  Municipal,  Social  and  Economic  Infrastructure 
Facility 

2.00 

3.20 

41.75 

5.70 

10.00 

06/2011/2:  Economic  Development  –  Intellectual  Property 
Rights 

1.00 

07/2011/2: Energy 

08/2011/2: Agriculture and Rural Development 

09/2011/2: Veterinary and Food Safety 

10/2011/2: Youth and Media 

11/2011/2: Social Welfare and Community Stabilisation 

4.00 

4.50 

2.95 

2.60 

4.00 

139 

 
 
 
 
 
 
 
 
 
 
 
 
 
12/2011/2: Education  

Public Administration Reform 

13/2011/3: Public Administration Reform 

14/2011/3: Public Finance 

15/2011/3: Institution Building (TAIEX) 

Support and Other Activities  

16/2011/4: EU Programmes 

17/2011/4:  Support  Measures  and  Technical  Assistance 
Facility 

TOTAL 

2.2.2 Component II 

7.00 

8.70 

2.70 

3.50 

2.50 

3.55 

0.50 

3.05 

62.90 

The 2010-2011 Cross-Border Cooperation Programmes for Kosovo-Albania and Kosovo-the 
former  Yugoslav  Republic  of  Macedonia  were  approved  in  December  2010.  The  Financing 
Agreements were finalised in the third and last quarter of 2011. The programme with Albania 
will be implemented through a call for proposals. In the programme with the former Yugoslav 
Republic  of  Macedonia,  the  allocation  for  first  year  (2010)  foresees  a  strategic  project:  a 
border  crossing  point  while  the  second  year  (2011)  will  be  implemented  through  a  call  for 
proposals. 

The programming of the Kosovo – Montenegro programme for 2011-2013 was finalised and 
adopted in December 2011. 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1Success stories 

The new Border Management System (BMS) is an achievement for Kosovo in the area of rule 
of law. Kosovo's borders can now be managed in accordance with European Standards, as the 
border  authorities  have  installed  a  potentially  Schengen  compatible  communication  system 
and received equipment for border control. Financed under the IPA 2008 (EUR 3.0 million), 
the  BMS  will  allow  a  structured  and  formalised  border  crossing  for  people  entering  and 
leaving Kosovo. It will alert Border Police when wanted criminals attempt to enter or leave 
the country. 

140 

 
 
 
 
 
 
 
 
Furthermore, Kosovo carried out its first population and housing census after three decades. 
With an EU contribution of EUR 2.5 million to a Multi-Donor Trust Fund (under IPA 2010) 
this  census  provides  valuable  statistical  information  on  the  population  and  its  living 
conditions, information that will direct policy planning over the next decade. The final results 
will be published later in 2012. 

In Roma Mahalla, an additional 14 Roma, Ashkali and Egyptian families have moved to their 
new  homes.  Until  now  the  families  were  living  in  dire  conditions  in  Osterode  camp.  This 
brought the total number of families resettled by the EU from the lead-contaminated camps in 
north Mitrovica to 65 (in total: 253 men, women, and children). This move also brought the 
permanent closure of Osterode within reach. The programme financed under IPA 2007 with 
EUR 5 million covered the physical relocation of Roma, Ashkali and Egyptian families into 
new houses, as well as vocational training, medical screening and treatment, health education, 
increasing  access  to  formal  education,  provision  of  legal  support,  and  community 
development projects. 

The  last  five  reconstructed  bridges  on  the  M2  road  (connecting  Kosovo  with  the  former 
Yugoslav  Republic  of  Macedonia)  were  inaugurated  in  2011.  The  M2  road  is  the  primary 
access  route  in  and  out  of  Kosovo  for  both  freight  and  passenger  transport.  With  all  the 
bridges reconstructed according to European standards, safe conditions for traffic are ensured 
and  economic  development  is  facilitated.  This  project  was  financed  under  IPA  2007  with 
EUR 6.7 million. 

The  first  Regional  Cultural  Heritage  Centre  in  the  Balkans  was  inaugurated  in  2011.    The 
Centre  located  in  the  Beledije  (in  Turkish  'municipal  house')  building  in  Prizren  which  was 
refurbished  with  EU  funds  under  the  PHARE  Project  "Development  of  a  regional  cultural 
heritage facility in Kosovo"* (EUR 1.5 million,) offers accredited training programmes in the 
field  of  cultural  heritage  for  all  types  of  professionals  across  the  region  (public  and  private 
experts, practitioners and students), in line with EU and international standards and based on a 
multi-disciplinary approach. 

Continuous  assistance  to  procurement  reform  in  Kosovo  has  led  to  the  adoption  of  a  new 
acquis-compatible  public  procurement  law.  This  new  law  provides  a  building  block  for  an 
effective public procurement system which promotes efficiency and effectiveness in the use 
of scarce public funds. It also aims to increase transparency and equal treatment. The project 
was funded under IPA 2007 with EUR 1.9 million. 

3.2 Overview of the implementation status of the different instruments and components  

Component  1:  advanced  substantially  compared  to  the  previous  reporting  year  in  terms  of 
contracting (see e.g. data for IPA 2008, 2009 and 2010). 

* 

 This is the only PHARE programme implemented by the EU Office. 

141 

 
 
                                                            
The  key  risk  relates  to  essential  preconditions  not  being  in  place  at  the  start  of  the  project 
(example: permits and licenses in works contracts). This is mitigated by: (1) being diligent in 
selecting  projects  (to  avoid  problems),  and  (2)  maintaining  close  cooperation  with  project 
remaining  problems  during 
beneficiaries 
implementation). 

line  ministries,  etc.) 

(to  solve 

(MEI, 

Component 2: contracting yet to start (apart from technical assistance contracts) 

Components 3, 4 and 5: not applicable 

3.3 Sector I: Justice and Home Affairs (focus on visa liberalisation and the judiciary) 

Project implementation in the area of judiciary and home affairs continued to strengthen the 
rule  of  law  related  institutions  in  Kosovo,  with  the  aim  of  contributing  to  a  transparent, 
independent  judiciary  system,  which  respects  human  rights.  EU  funds  continued  to  support 
the  integrated  border  management  system  and  the  Kosovo  Police  with  the  necessary 
equipment, in order to enable these structures to provide services closer to EU standards. 

IPA  assistance  in  the  rule  of  law  area  also  supported  preparations  for  the  visa  liberalisation 
process,  which  is  expected  to  start  in  2012.  A  concrete  example  is  the  EU-RAM  (Re-
admission and asylum) Twinning project aiming at aligning asylum and migration legislation 
with  the  EU  acquis  and  at  further  strengthening  the  administrative  capacity  of  the  Kosovo 
institutions to implement it. The project's main concrete outputs are: (i) improvement of the 
managerial,  administrative  and  legal  capacities  of  the  Department  for  Citizenship,  Asylum 
and Migration; (ii) enhancement of the capacities of the Department for Citizenship, Asylum 
and Migration in dealing with challenges due to the management of an increasing number of 
returning Kosovo citizens (re-integration). The project ended in February 2012. 

In the field of document security and proper functioning of civil status related procedures as 
one of the key criteria in the visa liberalisation process, the EU continued its support to the 
civil  registry  key  institutions  in  Kosovo.  The  IPA  2009  project  "Support  to  the  Civil 
Registration  Agency  and  Unified  Address  System"  directly  contributed  to  the  drafting  and 
adoption of the Law on Address System in Kosovo and is still supporting the drafting of the 
administrative instructions on civil registration and address system. 

Other  relevant  areas  supported  by  IPA  are:  fight  against  trafficking  in  human  beings;  legal 
education  reform  targeting  university  and  other  institutions  in  the  judiciary  such  as  the 
Kosovo Judicial Council; support to juvenile justice reform. 

3.4 Sector II: Private Sector Development (focus on trade and business environment) 

Private  sector  development  continued  to  be  supported  through  IPA  at  the  central  and  local 
level.  In  particular,  the  Ministry  of  Trade  and  Industry  received  support  focusing  on  two 
important aspects of EU accession: 

142 

 
 
(cid:131)  Support  to  access  to  the  EU  Internal  Market.  EU  support  was  provided  through 
TAIEX for better use of Quality Infrastructure related laboratory equipment provided 
by the EU. In addition, a comprehensive assessment of further needs of the Ministry 
and related Quality Infrastructure bodies was produced by EU experts as guidance for 
future IPA support in this sector. 

(cid:131)  Support to competiveness of the private sector. An EU technical assistance project in 
support  to  the  Ministry,  the  SME  Agency,  and  Investment  Promotion  and  Export 
Support Agency facilitated the adoption of Kosovo's first SME Strategy. The project 
also  improved  the  legal  environment  for  business  registration  and  economic  activity 
by supporting the drafting of the respective laws. The same project allowed the start of 
a restructuring process of the institutions in support to Private Sector Development in 
Kosovo. 

3.4 Sector III: Public Administration Reform  

In  2011  the  assistance  to  this  third  priority  area  mainly  focused  on  the  development  of 
administrative  capacity  of  Kosovo’s  civil  service,  local  government  and  the  wider 
decentralisation process, public finance management public procurement and statistics. In the 
field of public finance management, the EU supported the Office of the Auditor General, the 
financial control framework and internal audit systems, and the improvement of the quality of 
public investment allocation decisions, through further development of the Public Investment 
Programme. 

IPA assistance produced a number of concrete results in 2011.  

The multiannual EU scholarships for future civil servants (Young Cell Scheme) continued in 
2011;  40  new  students  started  a  degree  programme  at  an  EU  university  and  31  returned  to 
Kosovo to start their work in the public administration.  

The  preliminary  results  of  the  Population  and  Housing  census  carried  out  in  2011  were 
published in July 2011. The results will contribute to the strengthening of Kosovo's statistical 
system  that  will  be  used  as  a  basis  for  decision-making  by  public  authorities,  as  well  as  a 
fundamental pillar for the statistical system.  

The legal framework for public procurement was adopted and increases compliance with EU 
Directives  in  this  area.  The  law  introduces  legislative  provisions  which  modernise  and 
facilitate  efficient  and  effective  procurement,  increasing  transparency,  equal  treatment  and 
proportional use of resources.  

The  EU  Office  continued  to  use  the  Twinning  instrument  as  implementing  modality  for 
capacity  building  projects.  An  example  is  the  project  involving  the  Office  of  the  Auditor 
General: the Twinning contributed to improving the capacity of the Office of Auditor General 
to  provide  quality  information  on  the  use  of  public  funds  and  to  further  develop  good 
governance  across  the  public  sector  in  Kosovo.  In  addition,  SIGMA  provided  continued 
support in the area of public administration reform.  

143 

 
 
3.5 Cross-border cooperation 

Kosovo's Operating Structure for cross-border cooperation, the Ministry of Local Government 
Administration, received support from an EU technical assistance project in order to start the 
implementation  of  three  cross-border  programmes:  Kosovo-Albania,  Kosovo-the  former 
Yugoslav  Republic  of  Macedonia  and  Kosovo-Montenegro.  The  Ministry  received  a  grant 
from  the  EU  in  order  to  ensure  participation  of  Kosovo  in  the  Joint  Technical  Secretariat 
established for the Kosovo-Albania programme. Preparations of a study and technical design 
for  a  joint  border  crossing  point  between  Kosovo  and  the  former  Yugoslav  Republic  of 
Macedonia started. 

4. IMPLEMENTATIONAND MONITORING MODALITIES AND STRUCTURES 

In  2011  Kosovo  was  included  in  the  target  area  of  the  Result-Oriented  Monitoring  (ROM) 
project  managed  by  DG  Enlargement's  Regional  and  Horizontal  Programmes  unit. 
Accordingly, most of the on-going IPA projects were monitored by an independent team of 
experts. 

51  national  projects  with  a  total  value  of  approximately  EUR  119  million  were  covered  by 
ROM assessments carried out through four missions. The 51 ROM assessments included two 
ex post ROM reports.  

The average score of the 51 projects’ performance is 2.89 on the scale from 4 - very good to 1 
-  serious  deficiencies.  The  range  of  scores  went  from  1.91  (Contract  251905  –  Support  to 
legal translators and legal linguists) to 3.71 (Contract 226595 – New construction and upgrade 
of 400 and 110 Kv Overhead Transmission Lines – Lot 2). Other highly rated projects (good 
practice examples) were Contract 245805 – Capacity Building of Kosovo Medicines Agency 
(Score:  3.59)  and  Contract  230219  –  Support  to  Kosovo  participation  in  the  European 
Common Aviation Area (Score 3.57).  

Overall,  the  monitoring  reports  have  indicated  that  that  design  and  relevance  were  strong 
points in the monitored projects while sustainability was identified as a point for attention. 

Efforts have been made by the EU Office to ensure that the role and tasks of the Operations 
Section (OPS) were tailored to the new environment by increasing the role of the Contracts & 
Finance Section in ex-post controls.  An in-depth and systematic ex post control is performed 
by financial officers at the time of the invoice analysis.  Ex post controls and joint monitoring 
missions with OPS will be performed for:  

a)  All supply and work contracts at the time of the provisional and final acceptance.  
Those missions will be conducted in close cooperation with OPS while C&F will 
have  as  main  responsibility  to  control  the  rules  of  origin  (alignment  between 
certificates and the products,…), to check the quantity and eventually the quality 

144 

 
 
of  the  items  delivered  and  to  ensure  that  the  requirements  as  specified  in  the  TS 
have been respected (width and thickness of road,…)  

b)  Grant agreements will be submitted to a financial verification by EU Office staff.  
Such missions will have as main objective to ensure the existence and eligibility of 
the expenses encountered for a determined period, as well as to assess the control 
environment, taking into consideration the size of the organisation.  

PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Kosovo 

Kosovo 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

82,704,005 

82,584,944 

99.86% 

73,242,931 

88.56% 

IPA 2008 

183,318,922 

182,899,550 

99.77% 

114,461,570 

62.44% 

IPA 2009 

103,600,000 

64,472,406 

62.23% 

36,213,965 

34.96% 

IPA 2010 

72,100,000 

39,551,787 

54.86% 

15,620,838 

21.67% 

IPA 2011 

68,900,000 

4,200,000 

6.10% 

3,990,000 

5.79% 

Total 

510,622,927 

373,708,687 

73.19% 

243,529,303 

47.69% 

IPA – Component I National Programme Kosovo  

Kosovo 

 Allocated 

Contracted  % Contracted 

Paid 

% Paid 

IPA 2007 

62,000,000 

61,880,939 

99.81% 

52,538,926 

84.74% 

IPA 2008 

182,700,000 

182,576,330 99.93% 

114,138,350 

62.47% 

IPA 2009 

103,600,000 

64,472,406 

62.23% 

36,213,965 

34.96% 

IPA 2010 

63,900,000 

32,491,787 

50.85% 

8,590,620 

13.44% 

IPA 2011 

62,900,000 

0 

0.00% 

0 

0.00% 

Total 

475,100,000 

341,421,462 71.86% 

211,481,860 

44.51% 

145 

 
 
 
 
 
 
 
IPA – Component II (CBC) Programme Kosovo 

Kosovo 

 Allocated 

 Contracted 

 % Contracted 

 Paid  % Paid 

IPA 2007 

IPA 2008 

IPA 2009 

IPA 2010 

1,200,000 

60,000 

5.00% 

30,218 2.52% 

IPA 2011 

1,800,000 

0 

0.00% 

0 

0.00% 

Total 

3,000,000 

60,000 

2.00% 

30,218 1.01% 

Status of Implementation of IPA financial assistance per country at 31st December 2011 
of total committed funds (2007 – 2011): 

At 31st December 2011 IPA Component I managed by DG ELARG: 

EUR Million 

Committed  Contracted  

Percentage 

Paid 

Percentage 

Albania 

348.37 

233.69 

67.1% 

102.45 

29.4% 

Bosnia 
Herzegovina 

and 

389.83 

186.98 

48.0% 

103.26 

26.5% 

Croatia 

206.06 

100.62 

48.8% 

71.19 

34.5% 

former 
the 
Yugoslav  Republic 
of Macedonia 

Iceland 

Kosovo 

174.02 

66.66 

38.3% 

48.53 

27.9% 

12.00 

0.00 

0.0% 

0.00 

0.0% 

475.10 

341.42 

71.9% 

211.48 

44.5% 

Montenegro 

134.24 

89.83 

66.9% 

61.02 

45.5% 

Serbia 

Turkey 

857.39 

593.38 

69.2% 

380.14 

44.3% 

1,164.66 

597.40 

51.3% 

425.14 

36.5% 

Multi Beneficiary 

729.18 

597.32 

81.9% 

431.30 

59.1% 

146 

 
 
 
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
Total 

4,490.85 

2,807.30 

62.5% 

1,834.51  40.8% 

At 31st December 2011 IPA Component II managed by DG ELARG: 

EUR Million 

Committed  Contracted  

Percentage 

Paid 

Percentage 

18.59 

12.52 

12.52 

15.53 

Albania 

Bosnia 
Herzegovina 

and 

Croatia 

former 

of 

the 
Yugoslav 
Republic 
Macedonia 

Kosovo 

3.00 

Montenegro 

14.94 

2.76 

4.77 

4.42 

1.97 

0.06 

5.45 

6.57 

1.13 

Serbia 

Turkey 

Total  

16.37 

7.00 

100.47 

27.13 

14.8% 

38.1% 

35.3% 

12.7% 

2.0% 

36.5% 

40.1% 

16.2% 

27.0% 

2.16 

3.12 

2.09 

1.05 

0.03 

3.62 

4.63 

0.49 

17.19 

11.6% 

24.9% 

16.7% 

6.7% 

1.0% 

24.2% 

28.3% 

7.0% 

17.1% 

147 

 
 
 
 
At 31st December 2011 IPA Component II managed by DG REGIO: 

EUR Million 

Committed 

Paid 

Percentage 

Adriatic 

166.49 

45.22 

27.2% 

Slovenia-Croatia 

28.95 

11.28 

39.0% 

Hungary-Croatia 

35.54 

12.57 

35.4% 

Hungary-Serbia 

Romania-Serbia 

Bulgaria-Serbia 

Bulgaria-the former 
Yugoslav Republic of 
Macedonia 

Bulgaria-Turkey 

Greece-the former 
Yugoslav Republic of 
Macedonia 

33.97 

36.01 

21.26 

12.14 

18.49 

10.20 

12.33 

36.3% 

10.17 

28.3% 

5.78 

27.2% 

3.30 

27.2% 

5.02 

27.2% 

3.93 

38.5% 

Greece-Albania 

7.67 

2.95 

38.5% 

Total  

370.72 

112.54 

30.4% 

At 31st December 2011 IPA Component III managed by DG REGIO: 

EUR Million 

Committed 

Paid 

Percentage 

Croatia 

257.35 

78.03 

30.3% 

the former 
Yugoslav Republic 
of Macedonia 

109.20 

26.96 

24.7% 

Turkey 

Total 

1,055.50 

333.11 

31.6% 

1,422.05 

438.09 

30.8% 

148 

 
 
 
At 31st December 2011 IPA Component IV managed by DG EMPL: 

EUR Million 

Committed  Paid 

Percentage 

Croatia 

the  former  Yugoslav 
of 
Republic 
Macedonia 

69.98 

33.50 

22.20 

31.7% 

9.61 

28.7% 

Turkey 

Total 

299.70 

64.51 

21.5% 

403.18 

96.32 

23.9% 

At 31st December 2011 IPA Component V managed by DG AGRI: 

EUR Million 

Committed 

Paid 

Percentage 

Croatia 

129.40 

25.78 

19.9% 

former  Yugoslav 
the 
Republic of Macedonia 

47.50 

10.25 

21.6% 

Turkey 

Total 

463.00 

80.94 

17.5% 

639.90 

116.96 18.3% 

149 

 
 
 
 
 
 
B.  MULTI-BENEFICIARY 

1. SUMMARY 

Progress has been made in regional cooperation in the Western Balkans in the areas of justice 
and home affairs, statistics, energy, environmental and civil protection, cultural heritage and 
refugee  return.  The  Regional  School  of  Public  Administration  (ReSPA)  is  now  fully 
operational.  New  bilateral  agreements  on  police  cooperation  and  on  mutual  legal  assistance 
are encouraging signs for the commitment of several Western Balkan countries to strengthen 
judicial cooperation. Similar efforts promoting and facilitating local and regional cooperation 
at  government  level  as  well  as  through  the  inclusion  of  Non-Governmental  Organisations 
have  been  undertaken  with  the  aim  of  moving  forward  to  lasting  reconciliation,  notably 
through the Igman Initiative, the RECOM initiative on reconciliation and the Sarajevo Process 
on refugee return. 

2. STRATEGIC PLANNING AND PROGRAMMING 

2.1 Multi-Annual Indicative Planning Document 

The Multi-beneficiary (MB) Multi-annual Indicative Planning Document (MIPD) 2011-2013 
identifies  the  following  priorities:  (1)  to  maintain  the  momentum  of  reform  of  the  judiciary 
and public administration; (2) to enhance regional cooperation in the fight against organised 
crime and corruption; (3) to contribute to ensuring non-discrimination and respect for human 
rights as well as freedom of expression; (4) to help completing the process of reconciliation in 
the  Western  Balkans;  (5)  Contribute  to  building  a  vibrant  civil  society;  (6)  to  help  the 
Beneficiaries overcome the economic and financial crisis and prepare for sound recovery by 
jointly  working  on  increasing  competitiveness  and  investments  in  infrastructure;  and  (7)  to 
foster reforms and regional cooperation in education.  

To achieve the priorities selected for support in the programming period 2011-2013, the MB 
MIPD contains seven (7) sectors on which IPA assistance will be focused: 

Justice and home affairs, including fundamental rights and vulnerable groups  

• 
•  Public administration reform 
•  Support to civil society 
•  Private sector development 
•  Transport and energy infrastructure, including nuclear safety  
•  Environment and climate change 
•  Social Development. 

150 

 
 
 
Coordination  and  coherence  of  assistance  and  activities  is  particularly  important,  given  the 
large number of players involved in Multi-beneficiary IPA assistance programming. The need 
for  strong  coordination  and  coherence  has  been  highlighted  to  the  Commission  during 
consultations  as  very  important  by  the  authorities  of  the  region,  including  hands-on 
involvement of the EU Delegations in the implementation. 

2.2 PROGRAMMING 

2.2.1 Component I  

The  MIPD  for  the  years  2011  –  2013  was  adopted  on  20  June  2011.  The  sector  working 
groups that had been set up in the framework of the consultation process with all stakeholders 
for  the  MIPD  proved  instrumental  to  enhance  the  programming  process  for  the  MB  annual 
programming process for 2011 and 2012.  

All priorities and sectors identified in the MIPD were addressed in the programming exercise 
but  to  facilitate  programming,  the  various  projects  have  been  consolidated  into  separate 
Programmes:  

•  Multi-beneficiary Programme 2011; 
•  Tempus Programme 2011; 
•  Horizontal Programme for Nuclear Safety and Radiation Protection.  
•  The Civil Society Facility. 

The  MB  annual  programme  2011  was  adopted  on  18  July,  followed  by  the  adoption  of  the 
Tempus  Programme  on  20  July.  Two  amendments  to  the  MB  programme  2011  have  been 
prepared  to  meet  additional  needs  and  to  support  the  new  regional  programme  for  refugee 
return  (Sarajevo  process).  The  first  amendment  was  adopted  on  16  December,  whereas  the 
second amendment was prepared to be adopted early 2012. 

The  Horizontal  Programme  for  Nuclear  Safety  and  Radiation  Protection  was  adopted  on  11 
November with a focus to not only address current needs in the area but also to pave the way 
for the implementation of specific road maps for the period 2012 – 2015 that were developed 
in full consultation with the beneficiaries as well as experts of the EU Member States. 

As regards the Civil Society Facility, the design of a single financing decision for civil society 
support  for  the  period  2011-2012  was  completed  and  the  implementing  decision  for  2011-
2012  adopted  on  5  December  2011.  This  decision  includes  the  national  IPA  allocations  as 
well as the MB assistance.  

151 

 
 
 
 
Table 1: Indicative financial allocations for the year per component, in EUR million  

MULTI-BENEFICIARY 

I. Transition Assistance and Institution Building 

Of which: 

Multi-beneficiary Programme 1 

Amendment to MBP 1 

Civil Society Facility  

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 

8 

1 

2011  

21 

132.3

3.50 

21.20 

4.89 

4.20 

15.30 

4.61 

2.94 

12.00 

11.00 

1.34 

3.65 

217.0

The  projects  that  formed  part  of  the  2011  annual  programmes  were  selected  in  full 
coordination  with  the  IPA  Beneficiaries,  other  donors,  the  RCC,  civil  society  and  other 

This amount includes national funds for Tempus, Nuclear safety and radiation protection as well as 

21 
Civil Society Facility, amounts in other budget lines for actions specified in the Multi-beneficiary MIPD, as well 
as the use of carried over assigned revenues. 

152 

 
 
 
 
 
 
                                                            
 
stakeholders, taking also into account lessons learnt of past and on-going programmes. Only 
projects that had achieved sufficient readiness for implementation were accepted.  

Table 2: Indicative financial allocations for the year under the Multi-beneficiary Programmes, 
per sector and per project, in EUR million  

MIP

Projects 

D Sector 

Sector Justice and Home Affairs 

MBP 1: PF 1: Promoting Human Rights and 

protecting  

Sector 

Public Administration Reform 

MBP 1: PF 2:Local Administration Facility 

MBP  1:  PF  3:MB  Statistical  Cooperation 

Programme 

Sector 

Support to Civil Society 

Sector Private Sector Development 

MBP 1: PF 4: Trade logistics  

MBP  1:  PF  5:Regional  programme  on  trade  and 

investment  

MBP 1: PF 6: Quality infrastructure 

MBP  1:  PF  7:  Western  Balkan 

Investment 

Framework 

Sector Transport and Energy Infrastructure 

MBP  1:  PF  7:  Western  Balkan 

Investment 

Framework  

Budget  

3.60 

3.60 

10.70 

2.50 

8.20 

21.20 

35.28 

1.50 

1.28 

2.50 

30.00 

50.21 

40.00 

MBP  1:  PF  8:  Horizontal  support  to  coordination 

2.00 

with International Financial Institutions  

MBP  1:  PF  9:  Support  to  Transport  Community 

3.60 

Treaty 

Nuclear Safety 

4.61 

153 

 
 
 
 
 
 
 
 
 
 
 
 
 
Sector Environment and Climate Change 

MBP 1: PF 10: Building resilience to disasters 

Sector Social Development 

                             MBP  1:  PF  11:  Erasmus  Mundus  Action  1: 

Western Balkans - Turkey Windows 

2.20 

2.20 

36.80 

8.00 

                             MBP  1:  PF  12:  Erasmus  Mundus  –  Action  2: 

12.00 

Partnerships, Lot - Western Balkans 

                             MBP 1: PF 13: Youth in Action 

                            Tempus 

Supporting programmes  

MBP 1: PF 14: Participation in EU agencies 

MBP 1: PF 15: CBIB+ 

MBP 1 & Amendment No. 1: PF 16: Strengthening 

European Integration   

1.50 

15.30 

57.02 

8.00 

2.50 

6.50 

Support  to  the  operational  budget  of  the  Office  of 

4.89 

the High Representative (OHR) in Bosnia-Herzegovina   

Support to the Interim Civilian Office Kosovo 

Contribution to the Energy Community Secretariat 

TAIEX 

Information and Communication 

ERDF 

Evaluation, Monitoring and Audit 

4.20 

2.94 

12.00 

11.00 

1.34 

3.65 

217.01 

TOTAL 

3. IMPLEMENTATION OF EU FINANCIAL ASSISTANCE IN 2011 

3.1 Success Stories  

154 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
In the area of fight against organised crime and corruption it is worth mentioning the projects 
CARDS 2005 International Law Enforcement Coordination Units (ILECUs,) which ended on 
28  February  2011  and  IPA  2008  Police  Cooperation:  Fight  against  Organised  Crime,  in 
particular Illicit Drug Trafficking, and the Prevention of Terrorism (DET ILECUs II) which is 
still on-going. The projects amount respectively to EUR 2 and EUR 2.5 million. Their aim is 
to improve and enhance international strategic and operational capacities in the fight against 
organised crime.  

In the framework of the ILECUs project six Law Enforcement Coordination Units (ILECUs) 
were  established.  By  signing  the  Memorandum  of  Understanding  the  Beneficiary  Countries 
ensured their political commitment to setting up the units. Furthermore, national Memoranda 
of  Cooperation  were  signed  in  the  Beneficiary  Countries  providing  sustainable  legal  bases, 
which  ensured  internal  cooperation  between  the  various  Ministries  of  Finance,  Interior  and 
Justice.  The  necessary  infrastructure  was  set  up  and  individual  knowhow  transfers  were 
provided to make the ILECUs effective. The newly established units incorporate all branches 
of the international Law Enforcement Agencies (Europol, INTERPOL, EUROJUST, SELEC, 
foreign  liaison  officers,  SIRENE,  European  judicial  networks,  FRONTEX  and  OLAF) 
creating a single interface. The organisational as well as operational structure and processes 
were  defined  in  the  ILECUs  Guidelines,  which  resulted  in  faster  processes  for  information 
exchange. The Guidelines were adapted in DET-ILECUs II to take account of changes in the 
Western Balkan region and the project (ILECU Kosovo).   

DET-ILECUs II: within the first six months of the follow up project the legal framework was 
set up for ILECU Kosovo and it was up and working by June 2011. All ILECUs units in the 
region  were  linked  by  a  network  through  holding  regular  meetings  and  building  a  common 
training  platform.  A  working  relationship  with  Turkey  could  also  be  achieved.  In  the 
framework  of  the  Network  a  quality  management  system  was  established  for  Standard 
Operational Procedures; these are regularly updated by the network in order to respond to the 
changes  in  crime  environment.  In  addition  to  the  ILECUs  network  a  counter  terrorism 
network was established in the region. The founding of these networks and the exchange and 
transfer of regional and international knowledge contributed to the ILECUs becoming strong 
interfaces  for  both,  national  and  international  matters.  Faster  and  more  efficient  law 
enforcement processes resulted in a more effective fight against organised crime. Currently a 
new Memorandum of Understanding is being developed by the Network, which is aimed at 
ensuring the sustainability of the ILECUs in relation to cooperation and will also incorporate 
the prosecutors responsible for organised crime. The ILECUs are an answer to the adaptable 
and anarchical nature of organised crime and their future perspective is the regions alignment 
with the EU Member States, legally as well as operationally. 

The Western Balkans Investment Fund (WBIF) gained momentum and allowed identifying a 
considerable  number  if  investment  projects  which  will  attract  private  funding,  thereby 
multiplying the impact of IPA funds. 

155 

 
 
In  2011  and  since  the  creation  of  the  WBIF  in  December  2009  the  pipeline  of  projects  has 
grown  to  represent  123  grants  for  a  value  of  EUR  220  million,  that  will  trigger  nearly 
EUR 5 billion  in  loans  and  a  total  potential  investment  of  nearly  EUR  10  billion  across  the 
five  key  sectors  –  energy,  environment,  transport,  social  issues  and  private  sector 
development.  The 4th Meeting of the Steering Committee of the Western Balkans Investment 
Framework  (WBIF)  in  June  2011  in  Hamar,  Norway,  approved  grants  in  excess  of 
EUR 21 million  for  19  projects  in  the  region.  These  included  for  example  a  pre-feasibility 
study  for  the  Regional  Project  of  Ionian  Adriatic  gas  Pipeline  (520  km  total  length) 
contributing to the construction of a regional gas ring, a feasibility study on an electrical 400 
kV  Interconnection  between  Serbia,  Montenegro  and  Bosnia  and  Herzegovina  and  the 
preparation  for  the  construction  and  further  development  of  the  Regional  Centre  for 
Entrepreneurial Learning in Croatia.  

At the 5th meeting of the WBIF Steering Committee in December 2011 in Luxembourg, 22 
grants  for  a  total  value  of  EUR  59  million  were  approved.  It  is  expected  that  those  grants 
could eventually trigger loans and funds from the International Financial Institutions (IFIs) of 
more than EUR 1 billion for investments in infrastructure. The Steering Committee approved 
the  Western  Balkan  Enterprise  Development  and  Innovation  Facility  (EDIF),  funded  under 
the IPA 2011 MB programme as the first action in Private Sector Development to be financed 
by the WBIF. 

The  on-going  Tempus  projects  continued  to  promote  reforms  in  higher  education,  both  at 
institutional  and  national  level.  The  projects  dealing  with  curriculum  reform  contributed  in 
particular  to  the  implementation  of  the  Bologna  process  in  the  countries  of  the  Western 
Balkans, notably by putting into practice and widening the use of European Credit Transfer 
System  (ECTS),  the  Diploma  Supplement  and  the  three-cycle  structure.  Among  other 
initiatives,  a  concrete,  national-level,  Bologna  contribution  was  achieved  in  the  former 
Yugoslav Republic of Macedonia, where a Tempus project successfully developed a National 
Qualifications  Framework  for  higher  education.  Many  projects  also  promoted  the  regional 
cooperation  in  the  Western  Balkans,  for  example  the  project  "Enhancing  the  quality  of 
distance  learning  at  Western  Balkan  higher  education  institutions"  coordinated  by  the 
University  of  Kragujevac  and  the  "South  East  European  Project  for  the  Advancement  of 
Language Studies" coordinated by the University of Montenegro. 

The selection for the 4th call for proposals ended in July 2011 and a total of 62 new projects 
were  proposed  for  funding.  These  included  17  projects  targeting  the  Western  Balkans.  The 
projects started their activities on 15 October 2011. The 5th Tempus Call for Proposals was 
published  in  November  2011  and  was  followed  by  an  information  campaign  in  the 
participating  countries  including  Albania,  Bosnia  and  Herzegovina,  Montenegro,  Kosovo* 
and Serbia.  

The  network  of  Higher  Education  Reform  Experts  (HERE)  funded  by  Tempus  also 
contributed to the implementation of higher education reforms in the Western Balkans. These 
experts organised events at the local level to promote aspects related to the modernisation of 
156 

 
 
higher  education  and  were  involved  when  Ministries  in  their  countries  were  planning 
legislative reforms. The Tempus programme continued to offer regular opportunities for the 
HERE  network  to  meet  and  be  trained  –  one  of  such  events  was  organised  in  Albania  in 
February  2011  and  focused  on  Quality  Assurance  and  Accreditation.  The  seminar  led  to  a 
series  of  recommendations  on  the  improvement  of  quality  assurance  systems  for  higher 
education in the Western Balkans.  

3.2 Sector:  justice and home affairs, including fundamental rights and vulnerable groups  

Strengthening capacities in the fight against cybercrime CyberCrime@IPA 

IPA 2010, EUR 2.5 million 

The  project  aims  to  strengthen  the  capacities  of  criminal  justice  authorities  of  Western 
Balkans and Turkey to cooperate effectively against cybercrime.  

Within 18 months of implementation, CyberCrime@IPA delivered extensive benefits for the 
beneficiaries.  The  project  engaged  the  authorities  in  a  broad  process  of  reform  towards  a 
concerted  and  consistent  approach  to  cybercrime.  This  process  is  based  on  a  better 
understanding  of  cybercrime  as  a  threat  against  society,  as  well  as  of  the  complex  set  of 
measures  to  be  taken  at  national,  regional  and  international  levels  to  meet  this  challenge. 
Furthermore,  the  project  generated  dynamics  of  cooperation  between  different  organisations 
and projects while bringing in European and international expertise. 

An in-depth analysis of the existing capabilities with regard to cybercrime was prepared in the 
beginning  of  the  project  and  complemented  during  various  activities.  This  analysis  allowed 
the project to address real needs and provide targeted assistance. As a result, the project has 
achieved  significant  policy  and  strategic  impact  in  a  range  of  fields  such  as:  stronger 
involvement of decision-makers in supporting measures against cybercrime; harmonisation of 
the  legislation,  in  particular  support  for  legislative  amendments  as  well  as  signing/ratifying 
the relevant international treaties; increased the efficiency of the 24/7 network in the region, 
provided a good practice study on specialised cybercrime units and contributed to networking 
and developing a culture of cooperation in the region; provided a strategy for law enforcement 
training; raised awareness of the need to confiscate proceeds from crime on the Internet and 
strengthened  interagency  and  public-private  cooperation  against  criminal  money  on  the 
Internet; and provided guidance for strengthening cooperation between law enforcement and 
internet service providers against cybercrime.  

Regional  programme  for  durable  solutions  for  refugees  and  internally  displaced  persons 
during 1991-1995 in South-east Europe IPA 2010, EUR 1.5 million 

The  main  purpose  of  the  project  is  to  provide  legal  advice,  counselling  and  information  to 
returnees  as  well  as  repatriation  assistance  to  eligible  refugees  in  the  form  of  transport  of 
persons and refugee belongings in the region. 

157 

 
 
During  the  reporting  period,  1,801  refugees  received  legal  advice/assistance  and  1,019 
Croatian-Serb returnees in Croatia received assistance regarding individual durable solutions.  
A  total  of  130  received  assistance  to  voluntary  return  and  182  were  assisted  to  locally 
integrate in the region. 

Legal  advice  and  assistance  was  also  provided  to  beneficiaries  in  Bosnia  and  Herzegovina, 
Montenegro  and  Croatia  to  take  informed  decisions  on  their  future:  456  beneficiaries  were 
assisted  in  Bosnia  and  Herzegovina,  524  refugees  received  legal  advice/assistance  in 
Montenegro.  Repatriation  assistance  was  provided  to  returnees  to  Croatia  from  Serbia  and 
Montenegro and to Bosnia and Herzegovina. 

At the technical meeting in November in Banja Luka, UNHCR Bosnia and Herzegovina and 
Croatia  discussed  the  recently  adopted  Croatian  laws  on  Foreigners  and  Citizenship, 
repatriation process and data exchange. It was agreed that UNHCR Croatia would produce a 
draft leaflet with step-by-step instructions for the former residents in Croatia to regulate their 
status upon return pointing out defined procedures and possible obstacles.  

Migration for Development in the Western Balkans (MIDWEB) 

IPA 2009, EUR 1.95 million 

The objective of the action is to support informed migration from the Western Balkans (WB) 
to  the  EU  Member  States  and  to  contribute  to  the  positive  impact  of  labour  migration  on 
socio-economic development in the Western Balkans.  

During the reporting period, the expansion of the Migrant Service Centres (MSCs) network 
and adequate refurbishment with office supplies took place in a number of project locations 
(new MSC offices became operational in Serbia and Montenegro, refurbishment continued in 
the new MSCs in Bosnia and Herzegovina). The MSC information campaigns and outreach 
events  were  carried  out  in  a  number  of  project  locations.  Consular  Exchange  Meetings 
bringing together MSC staff, national governmental stakeholders and consular officials from 
EU  Member  States  embassies  and  consulates  took  place  in  all  project  locations.  The 
development  of  a  database  on  labour  market  data  and  shortage  occupations  for  the  Western 
Balkans and a selected number of EU key migration destination countries was completed in 
partnership with the International Organisation for Migration (IOM).  

The International Conference Fostering Partnerships for Return of Skills and Human Capital 
to  the  Western  Balkans  took  place  in  Budapest  from  19-20  October.  A  total  of  68 
governmental  and  non-governmental  stakeholders,  from  the  Western  Balkans  and  the  EU 
Member States, came together to discuss challenges and constraints to the permanent return of 
qualified nationals to the countries of origin. The Conference provided a platform for policy 
makers  and  non-state  actors  to  exchange  best  practices  and  identify  strategies  to  minimise 
‘brain  drain’  and  ‘brain  waste’  resulting  from  the  migration  of  qualified  migrants  to  more 
lucrative  labour  markets  and  to  prepare  a  set  of  policy  recommendations  for  adequate 
responses to the realities of migration today.  

158 

 
 
3.3 Sector: public administration and reform 

Concerning  the  Regional  School  of  Public  Administration  (ReSPA)  (phase  II),  a  service 
contract (aiming at assisting the development of ReSPA and its institutional and operational 
capacity to deliver professional training) was finalised in September 2011 and a direct grant 
(supporting  ReSPA  in  the  organisation  of  its  activities)  is  under  implementation.  The  two 
contracts are financed under IPA 2009 for an amount of EUR 4.4 million.  

Among the results achieved by the service contract are: support to the recruitment of ReSPA 
staff,  implementation  of  the  induction  plans  for  newly  employed  ReSPA  staff,  short-term 
external  expertise  for  public  procurement,  supply  of  publications  and  books  for  ReSPA 
support to the Liaison Officers in the region. 

In June 2011, an  agreement between  by  the  Minister of Foreign  Affairs of Montenegro and 
the  Director  of  ReSPA,  made  ReSPA  fully  responsible  for  the  running  of  the  premises  in 
Danilovgrad.  According  to  the  agreement,  ReSPA  has  the  status  of  an  International 
Organisation  acknowledged  by  the  host  country  authorities.  It  has  legal  personality  and 
capacity to perform its functions. The 5th Governing Board meeting was held in December.  

During the period July - December 2011 various trainings were organised and financed under 
the grant scheme: namely, a workshop on the development of leadership skills for managing 
staff, a training for civil servants on principles and practices of decentralisation in relation to 
good  governance,  a  training  on  membership  in  the  EU  and  the  challenges  for  national 
administration,  a  training  for  civil  servants  on  recruitment  and  selection,  performance 
management  and  development  and  a  training  on  policy  impact  assessment  in  the  public 
administration.  Moreover,  a  summer  school  in  European  Integration  and  Regionalism,  EU 
Law and its implementation took place in July, as well as the 18th Intensive Seminar on the 
European Union. 

In terms of multi-country assistance, the project Support for Improvement in Governance and 
Management in the Western Balkans and Turkey (SIGMA), financed under IPA 2010 for the 
amount of EUR 10 million, worked on developing a training programme on ethics for ReSPA 
and  Western  Balkan  countries  and  on  drafting  policy  papers  on  the  rule  of  law  and  the 
rationalisation of inspectorates. In the area of financial control, SIGMA drafted the overview 
section of the Commission's compendium on financial control systems in EU Member States, 
organised a 2nd regional Public Internal Financial Control conference, and provided support 
to  the  candidate  countries  and  potential  candidates  Supreme  Audit  Institutions'  Network.  In 
the area of public procurement, SIGMA published a second set of public procurement policy 
briefs  and  provided  advice  to  the  Commission  on  the  implementation  of  the  IPA  regional 
training project.  

3.4 Sector: civil society support 

The overall objective in this area is to strengthen civil society organisations and their role in 
the political as well as  European  integration  process  in the  IPA  beneficiaries. The  aim  is to 

159 

 
 
improve dialogue on legislation and policies between governments and civil society as well as 
to  strengthen  social  partnerships  that  underpin  reforms.  The  support  is  mainly  delivered 
through the Civil Society Facility (CSF) which consists of both national and Multi-beneficiary 
activities that are programmed in a coordinated manner.  

By the beginning of 2011, the CSF had received  approximately  EUR  41.5  million  from  the 
Multi-beneficiary  IPA  programmes  (IPA  2007,  2008,  2009  and  2010).  During  the  year, 
support at the Multi-beneficiary level continued to focus on three areas: 

A.  Assisting civil society organisations (CSOs) to increase their capacity, improve 
their  democratic  role  and  to  promote  networking  across  borders  through 
Technical Assistance 'TACSO' (IPA 2010, EUR 6.7 million). 

B.  Helping  CSOs  to  familiarise  themselves  with  EU  institutions,  policies  and 
decision-making processes and offering them the opportunity to network with 
their national, regional and European-level counterparts through the People-2-
People Programme (IPA 2010, EUR 1.785 million) 

C.  Offering  financial  assistance  to  CSOs  working  together  at  a  regional  level  to 
implement projects on specific themes through Partnership Actions (IPA 2008, 
EUR 5.4 million; IPA 2009, EUR 10 million and IPA 2010, EUR 3.3 million)  

Under Partnership Actions, three calls for proposals launched in late 2010 came into operation 
in  early  2011,  namely  'Socio-economic  Partners  (EUR  5  million,  12  grants),  'Minority  and 
vulnerable  group  organisations'  (EUR  2.5  million,  10  grants)  and  cultural  organisations 
(EUR 2.5 million,  10 grants).  In  addition,  a  contract  with  Unicef  was  signed  in  June  2011 
targeting 'Children's Rights' (EUR 1.65 million), while a further call for proposals focused on 
'Empowerment of Women' (EUR 1.85 million, 11 grants) was completed in November 2011. 
A  number  of  grants  awarded  from  IPA  2008  appropriations  came  to  an  end,  namely 
'Environment, Energy Efficiency, Health and Safety at Work' (EUR 3.79 million, 15 grants) 
and 'Fight against Corruption, Organised Crime and Trafficking' (EUR 1.61 million, 9 grants).  

During 2011, the CSF was redesigned to improve its relevance, efficiency and effectiveness. 
As  a  major  change,  CSF  activities  were  brought  under  a  single  Financing  Decision  with  a 
multi-annual perspective (IPA 2011 and 2012, EUR 40.05 million).  

A thematic evaluation of EU's Support to  Civil Society in the  Western Balkans and Turkey 
carried out in 2011 concluded that: "…it can be considered that the EU's priority objective of 
supporting the development and building the capacity of Western Balkan and Turkish CSOs 
has to a significant extent been achieved. In particular the EU has played a decisive role and 
this  not  only  in  the  period  following  the  conflicts  in  the  former  Yugoslavia  (post-conflict 

160 

 
 
reconstruction), but also in the current process of not only preparation for accession to the 
EU, but also reconciliation."22 

3.5 Sector: private sector and  

European Fund for Southeast Europe (EFSE) CARDS 2006, IPA 2007, 2008 and 2009; value 
by 31 Dec 2011 EUR 106 million 

The  EFSE  is  a  form  of  public-private-partnership. Its objective is to attract capital from the 
private  sector  thereby  leveraging  public  donor  funds  that  will  assist  the  development  of  the 
private sector in the region. EFSE extends loans to local commercial banks and micro-finance 
institutions in the WB for on-lending to micro- and small enterprises and households.  

At the end of 2011, the EFSE had granted 300,285 loans for the amount of EUR 1.8 billion 
(cumulative  since  2005)  via  local  partner  lending  institutions,  primarily  to  micro  and  small 
enterprises  in  Eastern  and  South  Eastern  Europe  and  the  Caucasus  region.  Approximately 
315,000 jobs were generated. Moreover, the EFSE has via the Development Facility provided 
technical  support  to  the  value  of  EUR 6.7  million  for  161  projects,  including  26  studies. 
Furthermore, 27 microcredit organisations and microfinance banks and 16 commercial banks 
were  supported.  Following  the  Trusteeship  Agreement,  one  monitoring  mission  per  year  is 
conducted to verify the compliance of investments with EFSE objectives.  

Regional  Competitiveness  Initiative  (RCI)  -  Crisis  Response  Package  IPA  2009, 
EUR 3.8 million 

The overall objective of the RCI is to strengthen the competitiveness of the economies in the 
Western  Balkans  in  the  medium  to  long  term.  The  RCI  focuses  on  policy  responses  and 
capacity building support to improve human capital development and innovation.  

The second meeting of the RCI Steering Committee in Sarajevo was organised in December 
2011. The Steering Committee reviewed the existing pilot projects and endorsed the launch of 
three  new  pilots  in  Albania,  Croatia  and  Kosovo.  RCI  Steering  Committee  members  with 
pilots felt that the mixed team approach and study visits were extremely useful and that the 
committee should continue its deliberations as an expert body following the conclusion of the 
RCI project in 2013. 

3.6 Sector: transport and energy infrastructure, including nuclear safety  

Investment  Framework 
Western  Balkans 
(infrastructure and private sector development) 

(WBIF) 

-  Socio-economic  Development 

The WBIF was set up in December 2009 by the European Commission, the EIB, the EBRD 
and the Council of Europe Development Bank (CEB). The WBIF has the endorsement of the 

22Thematic Evaluation of EU's Support to Civil Society in the Western Balkans and Turkey – Draft Final Report 
(March 2012), commissioned by DG Enlargement and implemented by IBF International Consulting I 
collaboration with BAA (Spain), not yet finalised. 

161 

 
 
                                                            
EU  Member  States  and  its  purpose  is  to  expedite  the  development  and  implementation  of 
priority  investments  in  key  sectors  in  the  WB.  This  is  achieved  through  mixing  loans  and 
grants  from  the  EU  and  IFIs  for  jointly  agreed  priority  projects  nominated  by  the 
Beneficiaries. 

The current grant contributions to the WBIF total around EUR 220 million. These grants are 
used  for  project  preparation  and  co-financing  of  investments  in  infrastructure  for  which 
financial support is provided by the partner IFIs; EIB, EBRD, CEB as well as "Kreditanstalt 
für  Wiederaufbau"  (KfW)  with  the  World  Bank  as  an  associated  IFI.  Grants  will  support 
investments  for  a  value  of  EUR 10 billion  for  which  IFIs  will  provide  loans  worth 
EUR 5.5 billion.  

The  largest  grant  contribution  to  the  WBIF  comes  from  the  EU  budget.  The  European 
Commission has so far set aside more than EUR 180 million in EU funding. Bilateral donors 
have  contributed  more  than  EUR  30  million  and  the  partner  IFIs  have  set  aside 
EUR 10 million each in grant contributions.  

Either  the  IFIs  or  the  European  Commission  implement  the  grant  assignments.  For  the 
implementation of the EU grants, the Commission has awarded technical assistance contracts 
under the Infrastructure Project Facility (IPF), which was the forerunner of WBIF, and has 
signed  contribution  agreements  with  the  IFIs  for  implementation  of  the  Municipal  Window. 
Grants  provided  to  the  WBIF  from  bilateral  donors  and  from  the  IFIs  are  implemented 
directly  by  the  IFIs  through  various  technical  assistance  assignments.  The  Commission  also 
provides  support  to  enhance  coordination  between  the  WBIF  stakeholders  with  respect  to 
policies and strategies in the different sectors. 

Horizontal  programme  on 
EUR 34.7 million 

the  Energy  Efficiency  Finance  Facility 

IPA  2007, 

This programme is designed to assist beneficiaries promote investments in energy efficiency 
and renewable energy generation in order to improve energy performance of the building and 
industry sectors thereby contributing to energy savings and reduction of CO2 emissions. This 
is achieved through the provision of financing to commercial banks in the region to increase 
their  portfolios  in  energy  efficiency  and  renewable  energy  projects  for  on-lending  to  final 
borrowers.  The  IFI  credit  lines  under  the  programme  are  combined  with  IPA  grants  in  the 
form of financial incentives both to partner banks and end-borrowers to facilitate investments. 

The  pace  of  implementation  in  the  second  half of  2011  increased  compared  to  the  previous 
reporting period. With the signing of all pending loan agreements by the end of 2011, credit 
lines  for  a  total  amount  of  EUR  145  million  combined  with  EUR  34.7  million  IPA  grants 
were fully allocated to projects. Under the EBRD credit line approximately 38% of the grant 
funds  have  been  allocated  to  signed  sub-loans;  the  Commission  has  made  available 
EUR 368,000  to  co-fund  the  extension  of  the  Facility's  technical  assistance.  A  joint 

162 

 
 
monitoring mission with EBRD was carried out in November 2011 visiting 5 renewable and 
energy efficiency projects in the industry sector in Bosnia and Herzegovina as well as Serbia. 

3.7 Sector: environment and climate change 

Regional Environmental Network for Accession (RENA)IPA 2009, EUR 5.2 million 

The  purpose  of  the  project  is  to  enhance  regional  cooperation  in  the  Western  Balkans  and 
Turkey in the field of environment. More specifically, the project aims at establishing tools to 
assist IPA Beneficiaries in harmonising legal frameworks, improving capacity and designing 
appropriate intervention mechanisms in line with the EU environmental acquis.  

During the year 2011 a number of workshops took place related to the accession negotiations 
process,  EU  requirements  and  identification  of  environmental  projects,  the  regulations 
touching  upon  the  use  of  chemicals  (  REACH/CLP  23),  the  EU  Emissions  Trading  Scheme, 
the development of Nature Site Management Plans, investment plans, the Water Framework 
Directive and approaches to transposition of the Environmental Impact Assessment/Strategic 
Environmental  Assessment  directives,  as  well  as  the  EU  Climate  and  Energy  Package,  EU 
policies  and  legislation  in  the  field  of  climate  change.  External  Country  assessment  reports 
have been prepared for Serbia, the former Yugoslav Republic of Macedonia, Montenegro and 
Bosnia and Herzegovina. 

Civil Protection Cooperation for the candidate countries and potential candidates IPA 2009, 
EUR 3.8 million 

The  project  aims  at  increasing  the  IPA  Beneficiaries'  capability  of  working  with  the 
Community  Civil  Protection  mechanism  and  to  contribute  to  the  development  of  their  civil 
protection capabilities through training, workshops and exchange of experts. 

During this reporting period a number or activities took place under the 3 lots/contracts of the 
project,  including  8  country  specific  meetings  under  Lot  1  and  8  country  specific  meetings 
under  Lot  2,  the  first  Table-top  exercise,  2  Basic  Training  Courses  (BAT),  1  Operational 
Management Training Course (OMT), 3 exchanges of experts on Forest Fire Exchange to the 
Monitoring and Information Centre (MIC), 1st Regional Field Exercise - scenario: earthquake, 
mass casualty (19-22 Oct, Slovenia; about 400 participants), participation of 2 representatives 
of  beneficiaries  in  the  EU  "Poseidon  Exercise-earthquake  followed  by  tsunami  in  the 
Mediterranean Sea", the first 1.5-day Workshop on the European Civil Protection Mechanism. 
A  survey  on  Host  Nation  Support  was  launched  and  visibility  activities  performed  which 
resulted in a brochure and leaflets. 

23REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals 

CLP: Classification and Labelling of Chemicals 

163 

 
 
                                                            
 
3.8 Sector: social development  

Erasmus Mundus, Action 1 and Action 2IPA 2007, 2008, 2009 and 2010, EUR 64 million 

The purpose of the Erasmus Mundus programme is to enable the exchange of academic staff 
and  students  at  all  levels  thereby  enhancing  their  knowledge  and  skills.    A  new  Call  for 
Proposals for the 2012 selection of joint programmes, partnerships and projects under all three 
Actions  of  the  programme  was  published  in  December  2011,  with  a  deadline  of  30  April 
2012.  

In  November  2011  the  promotion  of  Erasmus  Mundus  programme  in  Albania  in  the 
framework  of  the  conference  "Europe  2020  strategy  in  the  field  of  Science,  Research, 
Technology, and Education and Training" was organised by TAIEX in co-operation with the 
Ministry  of  Education  and  Science  of  the  Republic  of  Albania.  A  presentation  of  the 
programme and specific workshops were held in order to increase the number of applications 
from  partnerships  which  involve  Albanian  institutions,  as  well  as  to  disseminate  the 
scholarship opportunities open to Western Balkans students and staff. 

Youth in Action IPA 2007, 2008, 2009 and 2010, EUR 5.5 million 

The purpose of this programme is to promote the sector of non-formal education and youth in 
the region by supporting exchanges of young people and those active in youth work and youth 
organisations as well as initiatives that reinforce young people’s mutual understanding, sense 
of solidarity and tolerance. 

During the second selection round 2011, 258 Youth in Action projects have been submitted at 
centralised  level.  Within  those  projects,  125  have  been  presented  by  Western  Balkan 
applicants  (48%).  In  September  2011,  121  centralised  Youth  in  Action  projects  have  been 
selected  for  funding  under  this  second  selection  round  2011.  Within  those  projects,  33 
projects  have  been  financed  by  the  Youth  Balkan  Window.  The  repartition  of  the  projects 
selected was as follows: 16 projects presented by Serbian promoters, 11 projects presented by 
the  Former  Yugoslav  Republic  of  Macedonia  promoters,  5  projects  submitted  by  Albanian 
promoters and 1 project presented by a Kosovan promoter. In terms of thematic repartition, 2 
projects were granted under the Action 2 of the Programme (European Voluntary Service) and 
31  projects  were  selected  under  the  Action  3.1  of  the  Programme  (Cooperation  with 
neighbouring partner countries in the field of youth exchanges, training and networking). 

164 

 
 
 
PART II - FINANCIAL DATA 

On implementation of assistance at 31 December 2011 

IPA Multi-Beneficiary 

Multi 
Beneficiary 

 Allocated 

Contracted 

% Contracted 

 Paid 

% Paid 

IPA 2007 

107,313,737 

107,313,737 

100.00% 

94,312,436 

87.88% 

IPA 2008 

154,535,468 

146,628,033 

94.88% 

120,101,699 

77.72% 

IPA 2009 

206,760,000 

198,070,358 

95.80% 

153,179,211 

74.09% 

IPA 2010 

110,601,400 

101,599,560 

91.86% 

52,175,822 

47.17% 

IPA 2011 

168,207,500 

57,064,208 

33.92% 

18,439,328 

10.96% 

Total 

747,418,105 

610,675,896 

81.70% 

438,208,496 

58.63% 

IPA – Component II (CBC) Programme Multi- Beneficiary 

Multi 
Beneficiary 

 Allocated 

 Contracted 

 % Contracted 

 Paid 

% Paid 

IPA 2007 

8,753,000 

6,534,717 

74.66% 

4,784,595 54.66% 

IPA 2008 

7,285,021 

3,439,224 

47.21% 

2,065,757 28.36% 

IPA 2009 

2,200,000 

120,000 

5.45% 

54,637 

2.48% 

IPA 2010 

IPA 2011 

Total 

18,238,021 

10,093,941 

55.35% 

6,904,988 37.86% 

165 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C. 

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

Towards a new IPA Regulation for 2014-2020 

At  the  strategic  level,  2011  was  marked  by  preparations  for  the  new  instrument  for  pre-
accession  assistance  for  the  post-2013  period.  The  result  of  the  extensive  stakeholder 
consultation  that  had  been  launched  with  the  2010  IPA  Conference  fed  into  an  ex  ante 
evaluation on the future pre-accession assistance instrument and contributed substantially to 
shape  the  proposal  for  the  IPA  II  Regulation  that  the  Commission  adopted  on  7  December 
2011,  as  part  of  a  package  of  external  action  instruments.  In  line  with  stakeholders'  input, 
provided  at  the  2011  IPA  Conference,  the  Commission  proposal  reflected  the  vision  of  a 
renewed  IPA  instrument  that  should  make  financial  assistance  for  pre-accession  more 
strategic and result-oriented, based on longer term planning and programming in line with the 
enlargement  strategy  and  priorities;  more  coherent  as  to  the  support  provided  under  the 
current  components;  more  flexible  and  tailored  to  address  beneficiary  countries'  needs  and 
capacities in an enlargement context; more efficient, effective and simple, in the framework of 
a  common  approach  applying  to  all  EU  internal and  external  action  instruments  in  the  next 
2014-2020  Multi-Annual  Financial  Framework24.  Public  administration  reform,  good 
governance,  the  rule  of  law  and  the  fight  against  corruption  and  organised  crime  as  well  as 
socio-economic development and regional cooperation will remain a key focus of future pre-
accession assistance.  

Work on the new instrument will continue in 2012 and 2013. While the proposal for the IPA 
II Regulation is subject to discussion and negotiation in Parliament and Council, with view to 
adoption by ordinary legislative procedure by the end of 2012 or early 2013, the Commission 
will  prepare  the  draft  IPA-specific  Implementing  Regulation  and  the  strategic  planning 
documents, thus completing the framework for programming and delivering IPA II assistance. 
The  strategic  planning  framework  will  be  inspired  by  the  methods  in  use  in  the  EU  for 
structural funds, with an overall IPA Common Strategic Framework setting the general policy 
for  the  assistance  and  country/multi-country  strategy  papers  for  the  full  period  of  the  next 
multiannual  financial  framework.  The  preparation  of  sector  (multi-annual)  operational 
programmes to implement the strategy papers will follow. The above will require enlargement 
countries  to  set  up  comprehensive  national  strategies  that  IPA  II  can  support.  In  IPA 
countries, the main focus should be on securing strong local ownership and broad consensus 
on  the  strategies  to  be  put  in  place,  and  on  improving  the  capacity  to  plan,  implement  and 
monitor  their  implementation  and  to  integrate  this  into  the  broader  preparations  for  EU 
membership.  

24Cf. Proposal for a Regulation of the European Parliament and of the Council on the Instrument for Pre-
accession Assistance (IPA II), COM (2011) 838 final, 7.12.2011. 

166 

 
 
                                                            
2.  

TOWARDS A MORE EFFICIENT DELIVERY OF ASSISTANCE: GRADUALLY 
IMPLEMENTING THE SECTOR APPROACH TO THE ENLARGEMENT 
POLICY PRIORITIES 

The sector approach 

In  2011  the  Commission  continued  to  work  towards  introducing  a  more  comprehensive 
approach and to gradually extend it to all policy priorities of pre-accession assistance. With 
the  support  of  the  European  Training  Foundation,  in  June  it  organised  a  three-day  pilot 
training  on  sector  support,  designed  for  the  Enlargement  context  and  to  give  staff  in 
Headquarters and EU Delegations in enlargement countries a more in-depth understanding of 
how  support  through  sector  programmes  or  more  systematic  programme-based  approaches 
can help improve sustainable and more results oriented pre-accession assistance. Case studies 
and  examples  of  practical  applications  and  experience  were  used,  including  from  Kosovo 
in  Education),  Turkey  (evaluating  Public  Finance 
(developing  a  sector  approach 
Management)  and  Serbia  (indicator  setting  for  the  Justice  sector).  The  aim  was  to  help 
participants develop an approach to programming based on national sector policies and action 
plans  and  improved  needs  assessment  and  risk  analysis.  This  would  ultimately  allow 
alignment with beneficiary countries' systems and institutions, thereby building capacity and 
increasing  aid  absorption.  Feed-back  on  the  training  was  overall  positive.  Knowledge  and 
commitment were reinforced through engaged and positive discussion.  

The  overall  conclusion  drawn  from  the  training  was  that  the  change  from  a  project-based 
approach to a sector-wide approach takes time and can only take place progressively. There is 
no ready-made 'recipe' for implementing the sector approach, no unique model applicable for 
all countries.  

As a follow-up to this training, the Commission set up a dedicated "task force" to make the 
sector  approach  operational  in  all  the  policy  priorities  of  the  Enlargement  countries.  Other 
steps  envisaged  included  the  revision  of  the  IPA  Programming  Guide  and  programming 
templates,  for  programming  on  a  multi-annual  basis  already  for  the  period  2012-2013  and 
progressively  in  line  with  a  sector  approach  thereafter.  A  first  revision  of  the  programming 
templates  was  completed  by  the  end  of  2011;  resulting  in  sector  identification  fiches  to  be 
prepared  by  beneficiary  countries  as  a  preliminary  step  to  drawing  up  programmes  and,  if 
needed,  project  identification  fiches.  Further  revisions  of  the  programming  templates  will 
continue in 2012, together with a general revision of the Programming Guide.  

In  2012  the  Commission  will  also  continue  to  provide  seminars  and  workshops  on  sector 
approaches to staff in EU Delegations and to beneficiaries. A Joint Commission/World Bank-
implemented  project  on  Monitoring,  Indicators  and  Evaluation  in  the  Western  Balkans  and 
Turkey, for which discussion started in 2011, should also begin in 2012. The relevance of this 
project  and,  generally,  of  monitoring  and  evaluation  work  in  the  wider  context  of 
implementing  the  sector  approach  rests  on  the  expectation  that  performance  assessment 
frameworks  setting  clearer  objectives  and  measurable  indicators  for  a  sector  will  allow 
progress to be quantified and that regular monitoring will help ensure that where a programme 
in  a  given  sector  is  not  achieving  its  objectives,  action  can  be  taken  to  put  implementation 
back on track.  

167 

 
 
 
2.2 The main lessons learnt from evaluation 

An  evaluation  to  support  the  preparation  of  pre-accession  financial  instruments  beyond 
201325, found that there is a strong rationale for a future pre-accession financial instrument. 
The  preferred  option  of  the  evaluators  was  the  continuation  of  the  current  programme  with 
similar  levels  of  EU  funding.  The  evaluation  concluded  also  that  the  economic  and  wider 
benefits to the EU of enlargement involving the current beneficiaries would more than offset 
the cost to the EU of a new financial instrument.   

The first part of a thematic evaluation of EU's support to civil society in the Western Balkans 
and  Turkey26  provided  an  assessment  of  the  intervention  logic,  and  concluded  that 
interventions are relevant for the objectives identified in the MIPDs27. However, measurement 
of  progress  is  challenged  by  the  lack  of  sufficiently  SMART28  indicators  and  the  wide 
definition of strategic objectives.   

An evaluation of Twinning in Turkey29 concluded that the vast majority of Twinning projects 
in Turkey achieved their objectives, and the presence of synergies between Twinning projects 
and  other  EU  and/or  donor  funded  projects  was  a  key  factor  supporting  that  success.   The 
most  common  reasons  for  Twinning  projects  to  fail  to  deliver  included:  lack  of  political 
commitment,  problems  with  procurement,  inadequate  expert  mobilization  from  the  Member 
State institutions, and an outdated needs assessment.  

A strategic interim evaluation of regional cooperation in the Western Balkans and Turkey30, 
found that programming could be improved by increasing beneficiaries' ownership of regional 
programmes, and through better interaction with the stakeholders.  The evaluation also found 
that coherence between IРА regional and national programmes needs to be increased through 
more  systematic  information  sharing  during  the  programming  phase.    Overall  objectives 
should  be  linked  more  closely  with  project  objectives,  and  should  be  made  measurable 
through SMART indicators.  The evaluation concluded that efficiency and effectiveness have 
been improving slowly.  

A thematic evaluation  of IPA-funded information and communication activities31 concluded 
that whilst the overall objectives of IPA-funded information and communication activities are 
clear and coherent at Headquarters and Delegation level, specific objectives are too broad and 
do not meet the SMART criteria. IPA information and communication funds have generally 

25 Evaluation to support the preparation of pre-accession financial instruments beyond 2013, 13 June 2011 
26 Thematic Evaluation of the EU's Support to Civil Society in the Western Balkans and Turkey, June 2011 
27 Multiannual Indicative Planning Documents. 
28 Specific, Measurable, Achievable, Realistic and Time-bound. 
29 Review of Twinning in Turkey, 23 May 2011 
30 Strategic/Interim Evaluation of Regional Cooperation in the Western Balkans and Turkey, May 2011  
31 Thematic Evaluation of Pre-accession assistance to support communication activities, 7 June 2011 

168 

 
 
 
 
 
 
 
                                                            
been deployed in an efficient manner. However, efficiency could be increased by downscaling 
activities with limited effectiveness and greater concentration of resources on fewer activities. 
Information and Communication activities are clearly visible and effective for audiences with 
an interest in enlargement but less so for “non-informed” audiences and the broader public. 

Further on, a thematic evaluation of EU pre-accession multi-beneficiary assistance to Western 
Balkans  and  Turkey  in  the  fields  of  environment  and  disaster  risk  reduction32  was  also 
completed.    It  found  that  objectives  are  too  broad  and  not  sufficiently  linked  across  the 
different programming stages. Also, a key contribution of the multi beneficiary programmes 
has  been  the  promotion  of  beneficiaries'  institutional  change  towards  working  together  on 
environment  and  disaster  risk  reduction  issues  by  encouraging  networking  and  sharing 
experiences.    Impact  and  sustainability  of  programmes  is  hampered  by  uneven  commitment 
and ownership of the beneficiary countries, which often dedicate limited human and financial 
resources and sometimes do not plan follow-up actions beyond EU assistance.  Multi-annual 
long-term  projects  have  proved  to  be  effective  in  creating  sustainable  links  between 
participants  beyond  the  projects  implementation.    However,  the  evaluation  also  found  that 
dissemination and visibility activities are not fully effective in promoting sustainability. 

2.3. Cooperation with the donor community and aid effectiveness 

In 2011 the Commission continued to pursue the donor coordination agenda on various issues. 
Maximising aid effectiveness and demonstrating results and impact was one of them. During 
a  key  meeting  hosted  by  the  OECD  in  February  2011,  some  clear  issues  emerged.  This 
meeting  concluded  that  there  was  a  need  for  donor-initiated  measurement  systems  to  help 
strengthen  related  systems  in  beneficiary  countries  and  to  support  rigorous,  long–term  data 
collection  that  meet  the  needs  of  multiple  parties.  Future  practice  should  promote  greater 
convergence  between  the  demand  and  the  supply  side  in  results  reporting.  Joint  monitoring 
and  evaluation  could  help  overcome  attribution  problems  in  assessing  the  effectiveness  of 
programmes and strategies and the complementarity of efforts supported by different partners. 
The issue of results was also a key topic at the 4th High Level Forum on Aid Effectiveness in 
Busan in November 2011.  

The Commission has followed up on the 'results' issue through a dedicated EU Expert Group 
on Results created in November 2011 with the participation of experts from Member States 
and other donors. One objective of the group, to be pursued in 2012, is to develop a common 
EU  approach  to  results  as  indicated  in  the  Council  Conclusions  of  14  May  2012  on  the 
Communication  'An  Agenda  for  the  Change'.  In  2012,  the  Commission  will  look  into  the 
possibility for a common EU results framework to be developed so that it can also represent a 
reference  framework  for  measuring  and  communicating  the  results  of  future  pre-accession 
assistance.  

32 Thematic Evaluation of EI pre-accession multi-beneficiary assistance to Western Balkans and Turkey, in the 
fields of environment and disaster risk reduction, May 2011 
169 

 
 
 
                                                            
In 2012, the Commission will also continue work on making data on pre-accession financial 
assistance available according to the IATI33 standard for publishing aid information. 

The  importance  of  better  communicating  results  and  adopting  a  more  results-oriented 
approach  to  programme  design  was  raised  by  the  Organization  for  Economic  Co-operation 
and  Development,  Development  and  Co-operation  Directorate  members  also  in  the 
framework of discussions on the OECD DAC Peer Review of the EU 2011-2012, to which the 
the  Commission 
Commission  contributed.  With  regard 
highlighted  how  aid  effectiveness  principles  were  being  incorporated  into  the  Enlargement 
policy and related financial instrument (IPA): ownership and alignment have a key role in the 
pre-accession process; the sector approach is gradually being extended in the management of 
IPA  assistance,  with  focus  on  key  sectors  in  the  enlargement  countries  such  as  justice  and 
home affairs; cooperation with other donors, including European and International Financial 
Institutions (for example in the framework of the WBIF34) and EU Member States (through 
Twinning) is increasing; budget support is already considered as a possible aid modality, and 
should  continue  to  be  so  under  IPA  II  when  necessary  pre-conditions  and  guarantees  are  in 
place.  

to  pre-accession  assistance, 

The  Commission  stressed  also  the  strong  political  leverage  for  reforms  provided  by  the 
prospect  of  EU  membership  while  recalling  that,  in  the  context  of  preparing  beneficiary 
countries  to  join  the  EU,  pre-accession  assistance  also  has  a  development  objective  (it 
qualifies  as  official  development  assistance  (ODA),  except  in  the  case  of  Croatia).  Further 
developments in line with a more result-oriented approach were to be expected from IPA II, 
with  increased  focus  on  indicators  to  measure  results  and  impact  and  the  possibility  for 
financial top-ups to reward good performance.  

Work  will  continue  in  2012  to  make  sure  that  pre-accession  assistance  is  in  line  with  the 
various  initiatives  within  the  Commission,  the  Member  States  and  the  wider  donor 
community, to improve donor coordination and aid effectiveness and to demonstrate results.  

33 
34 

The International Aid Transparency Initiative. 
Western Balkan Investment Framework, see below. 

170 

 
 
                                                            
D. 

PHARE, CARDS, TURKEY PRE-ACCESSION AND TRANSITION 
FACILITY –FINANCIAL DATA AT 31ST

 DECEMBER 

1. 

PHARE, TURKEY PRE-ACCESSION AND TRANSITION FACILITY FUNDS 
IMPLEMENTATION BY CPOUNTRY AT THE END OF 2011: 

In 2011, there was no longer implementation of pre-IPA instruments (CARDS and PHARE) 
in Croatia, except for some remaining payments. 

Total commitments, contracts and payments, in million EUR35 

Partner Country 

Commitments  

Contracts  

Bulgaria 

Czech Republic 

Croatia 

Cyprus(*) 

Czechoslovakia 

East Germany 

Estonia 

Hungary 

Latvia 

Lithuania 

Malta 

1,931,177,220.20 

1,910,672,096.54 

871,696,799.25 

871,696,799.25 

123,868,791.57 

123,684,944.82 

303,952,990.68 

232,888,782.84 

231,820,000.00 

228,880,000.00 

28,860,000.00 

28,860,000.00 

321,151,322.78 

321,138,766.78 

1,407,718,324.16 

1,407,685,972.16 

399,445,389.60 

399,445,389.60 

772,496,698.28 

772,496,698.28 

51,952,164.42 

51,952,164.42 

Multi-country programmes 

2,865,235,557.01 

2,818,942,866.87 

Poland 

Romania 

3,738,116,167.27 

3,737,984,899.27 

3,325,958,278.96 

3,325,776,203.07 

35 
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. 

171 

 
 
                                                            
Slovakia 

Slovenia 

Turkey 

Total 

669,937,531.65 

669,804,518.65 

342,581,764.85 

342,581,764.85 

1,496,653,099.42 

1,496,653,099.42 

18,882,622,100.10 18,741,144,966.82 

(*)  

Including assistance to the Turkish Cypriot community 

172 

 
 
 
2.  

CARDS FUNDS IMPLEMENTATION BY COUNTRY AT THE END OF 2011 

Total commitments, contracts and payments: 

CARDS 
Total 

CARDS 
2001 

CARDS 
2002 

CARDS 
2003 

CARDS 
2004 

CARDS 
2005 

CARDS 
2006 

 Allocated 

contracted  

Percentage 

paid 

% paid  

951,941,764 

951,941,764 

100.00% 

951,941,764 

100.00% 

526,714,315 

526,129,157 

99.89% 

525,615,185 

99.79% 

485,017,422 

484,821,558 

99.96% 

484,000,541 

99.79% 

545,815,353 

541,386,249 

99.19% 

537,831,820 

98.54% 

411,760,483 

408,857,507 

99.29% 

402,863,483 

97.84% 

376,224,823 

372,270,702 

98.95% 

354,431,683 

94.21% 

Total 

3,297,474,162 

3,285,406,938  99.63% 

3,256,684,475  98.76% 

173