Southeast Finland-Russia Border Crossing Projects: A Case Study of ENPI CBC Programme

1. Case study ENPI CBC SEFR Border crossingprojectsTallinn 30 November 2017

2. Introduction Story of the Southeast Finland-Russia ENPI CBC Programme Story of a cluster of projects related to border crossing Story of Large Scale Project design and implementation The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

3. Programme context c.2006 • Russian economy growing at about 8% p.a. • Southeast Finland growing at over 5% p.a. • Increasingly sophisticated cross-border business supply chains • Investment flows in both directions • Disposable income increasing – sharp increase in tourism • Rapidly expanding flows of trade and tourists (10% p.a.) • Lengthening queues at border crossings The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

4. Design – interesting features • Integrated “cluster-type” approach (4 projects) including • Border crossing infrastructure • Border crossing equipment • Approach roads • Project preparation for a railway crossing point • Plans independently developed on both sides of the border • Proposals linked by joint management structures The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

5. Theory of Change The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

6. Evaluation Findings (Inputs-Outputs) • Expected outputs achieved with high level of success • Long-term institutional relationships were important • “Mirror projects” avoided problem of differences in legal, technical or engineering standards across the border • Russian co-financing added resources to the Programme and reinforced the parity of esteem of both partners • Difficulties in the period of time needed for project preparation and approval • Inconsistencies in administrative demands of different management authorities • Turnover of Commission staff The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

7. Evaluation Findings (Outputs-Intermediate Outcomes) • Overall, high level of success in achievement of expected intermediate outcomes. • Time savings (conservatively estimated to be worth EUR 7m in 2016 alone) • Safety improvements (reduction in accidents) • Border management capacity improved (customs and border security) • Environmental improvements The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

8. Evaluation Findings (Intermediate Outcomes-Broader Outcomes) • Many of the expected broader outcomes yet to be achieved primarily due to external factors • Tourism growth did not meet expectations – declines experienced • Trade volumes (and value) have fallen considerably at the end of the programme period • Volume of investment has fallen but region may be well prepared for general economic upturn • Almost all indicators of the work of customs and border management have improved (two key explanatory factors) The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

9. Evaluation Findings (Outcomes-Impact) • Social and political impacts more prominent than economic impacts (at least short-term) • Limited evidence of short-term economic gain – longer term better prospects • Improved social capital, trust and mutual understanding between cross-border communities • Maintenance of international relations The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

10. Recommendations • Recognise the importance of the CBC Programme as an instrument of strategic value in international relations • Larger scale projects should be supported for their political as well as their contribution to economic capacity • Make special efforts to investigate whether CBC interventions can provide a basis for further investments • Learn from the benefits accruing from the Russian co-financing of the Programme • Extend lead-in time for the calls for proposals The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

11. Recommendations 2 • The European Commission should carefully review its own role at each stage of the Programme cycle • Harmonise application, reporting and management documentation between Programmes • As economic conditions improve, be open to innovative, but risky, project ideas The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

12. Recommendations 3 • Create on line forum for Programme managers allowing real-time exchanges on day-to-day management issues • Redesign the monitoring and evaluation function of Programmes • Use the “mirror project” approach on large scale projects • Monitoring committees should have a genuine strategic development review every two years The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

13. Recommendations 4 • All infrastructural projects should be required to specify the additional investments in personnel, equipment or materials that may be needed for maximum impact to occur • For infrastructure projects, instruments such as the Neighbourhood Investment Platform, could be considered as an alternative or additional sources of finance The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited

14. Thank you for your attention! Address: GDSI Limited, Block 15, Galway Technology ParkParkmore, Galway, Ireland Tel.: +353 91 761000 E-mail: consulting@gdsi.ie Web: www.gdsi.ie The project is funded by the European Union and implemented by a consortium led by GDSI Limited Lead Implementing partner is GDSI Limited