Black Sea Basin 2013 annual conference “ From ENPI CBC to ENI CBC –

1. What is new for ENI CBC in 2014-2020? Black Sea Basin 2013 annual conference “From ENPI CBC to ENI CBC – Lesson Learned and Future Opportunities in the Black Sea Basin” Istanbul, 5 December 2013

2. I. REGULATORY FRAMEWORK 05.05.09

3. Regulatory framework - calendar Indicative timetable for adoption Programming Document Adoption Summer 2014 Financial Regulation Adoption end 2012 – entry into force 2013 ENI Regulation and Common Implementing rules Adoption early 2014 JOPs End 2014 Delegated Act and Strategic Dialogue: - EP Spring 2014 Implementing Rules Adoption 3rd Quarter 2014

4. II. ENI CBC STRATEGY 05.05.09

5. Basic geographical eligibility ENI Cross-Border Cooperation programmes can be established: • for land borders, covering the territorial units corresponding to NUTS level 3 along the land borders; • for maritime borders, covering the territorial units corresponding to NUTS level 3 along maritime borders; • around a sea basin, covering the coastal territorial units corresponding to NUTS level 2. 05.05.09

6. Proposed list of ENI CBC programmes 2014-2020 Land border programmes Sea crossings programmes Sea basin programmes Kolarctic programme - Finland /Russia Italy/Tunisia Baltic Sea Region Karelia programme – Finland/Russia Black Sea SE Finland/Russia Mediterranean Estonia/Russia Mid Atlantic Latvia/Russia Lithuania/Russia Poland/Russia Latvia/Lithuania/Belarus Poland/Belarus Ukraine Hungary/Slovakia/Romania/Ukraine Romania/Moldova Romania/Ukraine 05.05.09

7. ENI CBC Programming Document • Programme area: • Identification of the eligible border regions = « core eligible area » • Several options to extend the eligible area: • adjoining regions • major centres • extension from NUTS III to NUTS II for sea-crossing programme • adjoining regions from non-participating countries (ENI Regulation, Art. 10.5) • Border regions from EEA and IPA countries eligible to participate in ENI CBC programmes will be listed in the Programming Document as part of the core regions of the concerned programme. As in the case of other participating countries, the inclusion of adjoining regions and major centers from these countries should be duly justified in the JOP

8. Possibilities for extension ENI CBC IRs: flexibility for beneficiaries/ activities outside programme area IN ADDITION Major centers Programme area (maximum potential)

9. Justification for extension • Adjoining regions from participating countries: • would bring substantial added value for the core eligible area and • essential for achieving CBC impact in the core eligible area. • Major centers: • would bring substantial added value for the core eligible border area, • would strongly contribute to the achievement of the CBC impact in the core eligible border area, • essential to achieving the programme’s objectives in a sustainable way; • justification to be provided per programme priority. • Organizations from adjoining regions from non-participating countries (ENI Regulation, art. 10.5): • shall be envisaged and justified at project level if foreseen in the Joint operational Programme and calls for proposals; • shall be essential to achieve the specific project objectives in the core eligible area of the programme; • shall be key to ensuring the sustainability of the actions in the core eligible area of the programme; • shall be subject to the same provisions as the eligibility of actions and beneficiaries outside the programme area

10. ENI CBC Programming Document 3 strategic / overarching objectives programmes do not need to address all 3 objectives – to be decided based on the situation analysis and the strategy chosen A list of thematic objectives programmes to choose 4 = thematic concentration People to People as an horizontal modality Can be a modality in all thematic objectives Thematic objectives translated by programmes into priorities

11. ENI CBC intervention logic

12. Defining the programme strategy Stakeholder involvement Cross-cutting issues Thematic objectives for ENI CBC Common needs of programme area

13. Questions for better focusing • To what extent is cooperation necessary in this field? What added value can it present? Is the cross border cooperation the best mean/way to achieve a clear impact in this field? • Do programme actors have the necessary power and competences to deliver the change in this field? • What is the cooperation experience among the stakeholders in this field? • What potential does the Programme have to influence the change in this field? With the money we have, can we deliver a visible and meaningful change?

14. ENI CBC Programming Document Budget allocation: • Remains mainly based on populations of relevant NUTS III territories or equivalent; • Population of additional eligible territories (adjoining regions, major centres,…etc.) will not be counted; • Populations of eligible territories participating to more than 1 programme will be counted only once; • Implications of splitting trilateral programmes into bilateral ones not yet fully worked out; • Separate allocation for Sea Basin programmes => EEAS/COM consider some pro rata increase justified given needs and absorption capacity.

15. III. ENI CBC IRs: overall framework 05.05.09

16. What’s new? • Underlying philosophy is to align as much as possible withETC/IPA CBC instruments • New roles and responsibilities for all participating countries (including partner countries) • Management mode: shared management as the preferred option; • Designation of the Managing Authority by the hosting Member State; • Financing Agreements: the Managing Authority may/must be involved; • Possibility to sign Memoranda of Understanding / Bilateral Agreements. 05.05.09

17. Role and responsibilities (1) • More flexibility in defining programme procedures (PRAG procedures are no more compulsory) • New tasks and increased responsibilities for all participating countries in the following areas: • Participating countries must reach an agreement on the management and control systems and describe them in the JOP (summary) and in the "DMCS" (full description) • Capacity-building process for partner countries Management Control Audit Recoveries 05.05.09

18. Role and responsibilities (2) Approval of the JOP by the EC Designation of the MA by the hosting MS • Are based on this division of responsibilities and • on the proper setting of management and control systems (including audits) in all participating countries 05.05.09

19. Programmes’ period of execution (1) • From date of adoption until end 2024; • Pending entry into force of first Financing Agreement: • Preparatory actions for launching progammes; • Launch of calls for proposals with suspensive clause (only in exceptional and duly justified cases). • If no Financing Agreement is signed: programme is terminated; • Deadline for contracting: end 2020; • Deadline for implementation: end 2022. 05.05.09

20. Programmes’ period of execution (2) 05.05.09

21. IV. ENI CBC IRs: grants and project beneficiaries 05.05.09

22. Projects (1) • Mainly funded through grants: • calls for proposals; • direct award procedure: • exceptionally and in justified cases (monopoly, type of body); • list included in JOP (list is final for large infrastructure projects and only indicative for all other projects); • with prior EC approval. • Exceptionally, in the form of transfers to financial instruments*: • with prior EC approval; • list included in JOP (list is final). *Not possible yet,need to adjust the exisiting Neighbourhood financial instruments (i.e: NIF) to the CBC context;work is on-going within EC services.

23. Projects (2) Large Infrastructure Projects (LIPs): • projects with an infrastructure component of at least 1M€; • selected via direct award and/or calls for proposals. Final application for LIPs selected via direct award to be submitted to the EC no later than end 2017 • Grants to LIPs together with transfers to Financial Instruments cannot exceed 30% of the Union contribution to a programme!

24. Projects (3) Conditions for financing: • CBC impact and added value to EU strategies and programmes; • Integrated/Symmetrical/Single countries projects; • Implementation in the programme area, BUT:possibility to finance projects partially implemented outside eligible area, if justified → up to max. 20% of Union contribution at programme level • MA responsible for preventing duplications.

25. Projects (4) Selection procedure: • PRAG not anymore compulsory in case of shared management or indirect management with International Organizations; • Rules decided by the participating countries, • BUT compliance with the EU principles (transparency, equal treatment, objectivity, impartiality and confidentiality) will have to be ensured!

26. Projects (5) Beneficiaries: • In each project: at least one beneficiary from a Member State (MS) and at least one from an ENI partner country/ Russian Federation; • The participation of Turkish partners (IPA country) will be possible in projects involving at least one beneficiary from a MS and at least one from an ENI partner country/ Russian Federation • Conditions for participation: • Natural or legal person; • Established in the programme area BUT: possibility to include beneficiaries from outside programme area, if justified • up to max. 20% of Union contribution at programme level (cumulative with 20% rule for activities outside the programme area)

27. Projects (6) Procurement under grant – main changes: • Procurement procedures are laid down in ENI CBC IR; • Higher thresholds; • Rules of nationality and origin and exclusion cases set out in the draft Common Implementing Regulation for EU external action shall apply; • Possibility to apply beneficiary procedures for low value contracts. 05.05.09

28. Projects (7) Procurement under grant – the rule of origin: *The additional eligibility rules must be an extension of EC rules. ** Article 9: MS, ENI countries, Russia, EEA, IPA countries, developing countries members of the OECD list, countries with reciprocal access.

29. Projects (8) Procurement thresholds:

30. Exceptions to the above procurement procedures Entities that can apply their own procedures: • International Organisations; • "Contracting Authorities" in a Member State; • Public authorities in a Partner Country*. ! However, the following rules must be respected: • Rules on nationality and origin; • General principles (e.g. transparency, fair competition, compliance with best international practice). *If Financing Agreement so allows. Limited to programmes where a participating country transfers its co-financing to the Managing Authority. 05.05.09

31. Financial support to thrid parties (sub-granting) Conditions: • Sub-grantees offer guarantees as regards recoveries; • Conditions for such support are strictly defined in the contract: categories of entities; award criteria, criteria for determining amount, types of activities; • Maximum amount < 60 000 EUR per third party, but it can exceed if it is the primary aim of the action. 05.05.09

32. Thank you for your attention! INTERACT ENPI http://enpi.interact-eu.net/enpi 05.05.09