Management of EU Structural Instruments in Bulgaria

1. Management of EU Structural Instruments in Bulgaria Boriana Pencheva Director Management of EU Funds Directorate Ministry of Finance 06.02.2008

2. CONTENT • EU Financial Framework for Bulgaria; • NSRF and Operational Programmes of Bulgaria; • Institutional and Legal Framework; Monitoring and Reporting; • Project Pipeline Preparation; • Lessons Learned.

3. 2007 – Economic Performance • High and sustainable economic growth - above 6% • Financial stability and high degree of confidence • Prudent fiscal policy • Continued reduction of unemployment rates • Government debt – reduced to less than 20% of GDP • FDI cover more than 100% of the current account deficit • Inflation - above forecasted levels

4. Higher than the average for EU growth rates Source: European Commission, Economic Forecasts Spring 2007 High and Sustainable Economic Growth

5. Economic growth rates • Bulgaria maintains stable and consistently strong growth rates, among the highest in CEE countries, and significantly higher than in Eurozone countries. • Economic growth sped up to 6.4% year over year in the first half, driven by domestic demand expansion. • Industry and services rose by 9.1% and 8.8% in the first half respectively. • Projected growth is an average of 6.5% in 2007-2009. Real GDP growth (% change) Source: NSI, AEAF

6. Economic growth • Industry is the most dynamic sector of the economy (real growth of 9.1% for H1 ‘07) • Growth is driven by domestic demand: • High investment activity – favourable business environment and positive expectations • Quickly growing consumption

7. Foreign Direct Investment • Bulgaria’s accession to the EU and the improved business environment are important factors for FDI attraction • Economic and political stability guarantee foreign investors’ interests • The average annual FDI share in GDP is expected to be around 12-15% in the period 2008-2010

8. Enhancing Economic Integration • The share of Bulgarian exports in the overall (external)imports of EU doubled from0.47% in1999to0.87% in 2006; • The share of EU-25 in the overall Bulgarian exports rose from around 42% in 1995to56% in 2006; • Over 85% of the FDI in 2006 are from EU Member States.

9. Labour Market • Higher employment and lower unemployment in the country • Rise of employment by 4.6% in the first nine months of 2007 over 2006 – creating new jobs in the private sector and increased level of economic activity • Downward trend of unemployment in the country – average drop to 6.6% for the first quarter of 2007

10. EU Structural Instruments allocations for Bulgaria 2007-2013 Objective/Fund Budget (€) Share Convergence 4.391 bln 64.1 % ERDF 3.205 bln 72.9 % ESF 1.186 bln 27.1 % Cohesion Fund 2.283 bln 33.3 % Total 6.674 bln 97.4 % European Territorial Cooperation ERDF 179 mln 2.6 % TOTAL 6.853 bln 100.0 %

11. Strategic programming documents National Strategic Plan for Fisheries and Aquaculture Community Strategic Guidelines National Development Plan National Strategic Documents National Strategic Reference Framework Operational Programmes National strategic Plan for Rural Development OP Regional Develop ment OP Development of the Competitive ness of BG Economy OP Human Resources Develop ment OP Environ ment OP Transport OP Administra tive Capacity OP Technical Assisstance

12. National Strategic Reference Framework • Vision: • By 2015 Bulgaria to become a competitive EU country with high quality of life, incomes and social awareness • Strategic Objectives: • Strengthen the competitiveness of the economy to achieve high and sustainable growth • Develop human capital to ensure higher employment, income and social integration • Strategic Priorities: • Improving basic infrastructure • Increasing quality of human capital with a focus onemployment • Fostering entrepreneurship, favourable businessenvironment and good governance • Supporting balanced territorial development

13. OP Regional Development • Total amount: 1 601 ME; EU - 1 361 ME; Nat. - 240 ME • Priority Axis: • Urban Development • Regional and Local Accessibility • Sustainable Tourism Development • Regional and local networking, co-operation and capacity • Potential beneficiaries: Municipalities, municipal companies, assosiations of municipalities,NGOs with local representations • Managing Authority: Ministry of Regional Development andPublic Works www.mrrb.government.bg

14. OP Development of the Competitiveness of the Bulgarian Economy • Total amount: 1 162 ME; EU - 988 ME; Nat. - 174 ME • Priority Axis: • Development of knowledge-based economy and innovations • Increasing enterprises efficiency and business environment • Financial resources for developing enterprises • Strengthening international market positions of the economy • Potential beneficiaries: SMEs, universities, research centers • Managing Authority: • Ministry of Economy and Energy • http://www.iaphare.org/bg/index.php

15. OP Human Resources Development • Total amount: 1 214 ME; EU - 1 032 ME; Nat. - 182 ME • Priority Axis: • Promotion of job creation and development of inclusive labour market • Raising the productivity and adaptability of the employed persons • Improving the quality of education and training in correspondence with the labour market needs for building knowledge-based economy • Improving the access to education and training • Social inclusion and promotion of social economy • Improving the efficiency of labour market institutions and of social and healthcare services • Transnational and interregional cooperation • Potential beneficiaries: • Educational and training institutions and organizations, employers, branch organisations, socio-economic partners, NGOs, centres for information and vocational training, institutions for vocational counselling • Managing Authority: • Ministry of Labour and Social Policy • www.mlsp.government.bg

16. OP Administrative Capacity • Total amount: 181 ME; EU - 154 ME; Nat. - 27 ME • Priority Axis: • Good governance • Human resources management in the state administration, the judicial system and civil society structures • Quality of administrative service delivery and e-governance development • Potential beneficiaries: State administration, judiciary system,civil society • Managing Authority: Ministry of State Administration and Administrative Reform www.mdaar.government.bg

17. OP Transport • Total amount: 2 003 ME; EU - 1 624 ME; Nat. - 379 ME • Priority Axis: • Development of railway infrastructure along the major national and Trans-European transport axes • Development of road infrastructure along the major national and Trans-European transport axes • Improvement of intermodality for passengers and freights • Improvement of the maritime and inland-waterway navigation • Potential beneficiaries: National company Railway infrastructure, municipalities, Extrabudgetary Fund Road infrastructure • Managing Authority: Ministry of Transport www.mt.government.bg

18. OP Environment • Total amount: 1 801 ME; EU - 1 466 ME; Nat. - 334 ME • Priority Axis: • Improvement and development of water, wastewater infrastructure fin settlements with over 2000 PE • Improvement and development of waste treatment infrastructure • Preservation and restoration of biodiversity • Potential beneficiaries: Municipalities, regional municipal assosiations, public entities forwater management • Managing Authority: • Ministry of Envirotnment and Water • www.moew.government.bg

19. OP Technical Assistance • Total amount: 56. 8 ME; EU - 48,3 ME; Nat. – 8.5 ME • Priority Axis: • Support to the implementation of the activities, performed by the Central Coordination Unit, Certifying Authority and Audit Authority, the OPTA Managing Authority, the NSRF Monitoring Committee and the OPTA Monitoring Committee • Further development and support to the functioning of the Unified Management Information System • Promotion of the European Cohesion Policy in Bulgaria and ensuring the provision of general and statistical information • Potential beneficiaries: Central Coordination Unit, Certifying Authority, Audit Authority • Managing Authority: Ministry of Finance www.minfin.bg

20. State of play • Strategic programming documents • NSRF – approved by EC on 20 June 2007 • Operational Programmes – approved • Calls for proposals launched by the end 2007: • OP “Regional development” – 5 schemes • OP “Development of the Competitiveness of BG Economy” - 6 schemes • OP “Administrative capacity” – 8 schemes • OP “Development of Human Resources” – 6 schemes

21. Legal framework for award of contracts • Public Procurement Law • Rules for the implementation of the Public Procurement Law • Ordinance for the award of Small Public Contracts • Council of Ministers Decree No 55/2007laying down the provisions for the award of service, supply and works contracts by EU Structural Funds and PHARE Programme grant beneficiaries • Council of Ministers Decree 121/2007 laying down the provisions for awarding of grants under the operational programmes co-financed by the Structural Funds and the Cohesion Fund of the European Union, and under the PHARE Programme of the European Union • National eligibility rules

22. Project Pipeline Preparation • Projects under OP “Environment” • No of projects - 34 • Budget - 643, 4 mln. Euro • 16 projects in waste management – 313,3 mln. Euro • 18 projects for waste water treatment – 330,1 mln. Euro • Projects under OP “Transport” • No of projects - 22 • Budget – 1, 907 mln. Euro • 9 projects in road sector – 998 mln. Euro • 8 projects in rail road sector - 909 mln. Euro

23. Major projects 2008-2009 Transport sector Environment sector

24. Information and publicity

25. THANK YOU FOR YOUR ATTENTION! Boriana Pencheva www.eufunds.bg