Leader Subcommittee: Focus Group 1 Leader implementation models in the programming period 2007-2013

1. Leader Subcommittee: Focus Group 1Leader implementation models in the programming period 2007-2013 Rome, 24 March 2010 Jean-Michel Courades DG Agriculture and Rural Development

2. Regulation (EC) n°1698/2005 provisions Project approval procedures are defined by Member States Article 75.1 : The Managing Authority shall be responsible for managing and implementing the programme in an efficient, effective and correct way and in particular for ensuring that operations are selected for funding in accordance with the criteria applicable to the rural development programme Article 71.2: « Expenditure shall be eligible for a EAFRD contribution only where incurred for operations decided on by the Managing Authority of the programme in question or under its responsibility, in accordance with the selection criteria fixed by the competent body. » Article 2 e) "operation": a project, contract or arrangement, or other action selected according to criteria laid down for the rural development programme concerned and implemented by one or more beneficiaries allowing achievement of the objectives set out in Article 4;

3. Regulation (EC) n°1698/2005 provisions Article 62.4 : 4. The local action groups shall choose the projects to be financedunder the strategy. They may also select cooperation projects Article 62.1.c Local action groups « must show an ability to define and implement a development strategy for the area.” Managing Authority keeps its responsibility on the efficiency and correctness of management. The local action group has to be considered as a “body“ carrying out delegated programme management tasks in the sense of Article 75.2 of Regulation (EC) n° 1698/2005.

4. Legal terms used for the typology Project approval refers to : Aid commitment : Legal commitment towards the beneficiary to provide the support (decision taken, signing the contract with the beneficiary and/or issuing the grant letter). This implies a legality check including both the eligibility criteria (admissibility criteria) and selection criteria. Project Selection refers to : project qualitative assessment. Project are chosen by the LAG after a compliance assessment with the strategy objectives and comparative assessment in the case of several project submissions (local calls) .

5. A typology of Leader implementation models Decentralisation of project selection competence Decentralisation of project selection and payment competence Decentralisation of project formal approval

6. Decentralisation of project selection at LAG level This model can be considered as a "basic model" corresponding to the LAG minimum competence. The local action group has the practical responsibility to implement the local development strategy (Article 62.1 a). Most of the management tasks are carried out at local level. The group has no role for the formal project approval and payment of EAFRD support towards the beneficiaries.

7. Decentralisation of project selection at LAG level The following tasks are carried out by the local action groups: Elaboration of calls including definition of local selection criteria Publication of calls Reception of applications Project Assessment Project ranking Final list of selected projects proposed to the MA including fixing the amount of support monitoring the implementation of the strategy (including monitoring the realization of selected projects) evaluation of the strategy possible control tasks MA Por a sub-delegate authority under its supervision approves the project

8. Decentralisation of project selection and payment to the beneficiaries The payment task is added to the eight basic tasks carried out under the previous model. The LAG is responsible for selecting the project and receiving the payment claims and paying funds. Control tasks on projects can also be delegated to LAGs

9. Decentralisation of project selection and payment to the beneficiaries The following tasks are carried out by the local action groups: Elaboration of calls including definition of local selection criteria Publication of calls Reception of applications Project Assessment Project ranking Final list of selected projects proposed to the MA including fixing the amount of support Payment towards the beneficiary monitoring the implementation of the strategy (including monitoring the realization of selected projects) evaluation of the strategy Possible control tasks MA or a sub-delegate authority under its supervision approves the project

10. Decentralisation of project formal approval the local organisation (local action group) is responsible for appraising, selecting and approving formally the project The key distinctive feature of this implementation model is that the legal commitment towards the beneficiaries is made by the LAG This includes signing the grant agreement and /or issuing the grant letter to the beneficiary. This can include the legality check (eligibity and administrative checks) Control and/or payment tasks can also be delegated to LAGs

11. Implementation models used in MS