Effective Support for Enlargement: Boosting Absorption Capacity in Candidate Countries

1. Effective Support for Enlargement Panel II: Adequate capacity for absorbing financial assistance -setting the decentralised management in the candidate countries- Conference "Effective Support for Enlargement", Brussels 19.10.2009

2. Macroeconomic absorption capacity (as % of GDP) Financial absorption capacity (ability to co-finance) Administrative absorption capacity (demand side-to generate projects, supply side-to manage the funds) Not a constraint in the pre-accession period The intention to increase the co-financing rate beyond the thresholds Supply and demand of mature and ready-to-go projects, to cope with reporting requirements, to supervise implementation, and to avoid irregularities, Structures, Human resources, Tools Absorption capacity (main elements)-Macedonian case- Conference "Effective Support for Enlargement", Brussels 19.10.2009

3. Programming Implementation Monitoring Evaluation Relevant experience accumulated Conferral of management ongoing Shadow phase introduced Country Interim evaluation Programme introduced Overall status Conference "Effective Support for Enlargement", Brussels 19.10.2009

4. Implementation Conference "Effective Support for Enlargement", Brussels 19.10.2009

5. Conference "Effective Support for Enlargement", Brussels 19.10.2009

6. Structures Operating structures established per component in line with WLA and act of Systematizations and rule book of working post adopted accordingly: • IPA component 1 – 166 employees • IPA component 2 – 28 employees • IPA component 3 – 46 employees • IPA component 4 – 40 employees • IPA component 5 – 120 employees Conference "Effective Support for Enlargement", Brussels 19.10.2009

7. Capacity Building Conducted trainings thus far: • monitoring and evaluation, procurement, grant schemes, financial management, risk management, irregularities, work load analysis, techniques of writing PFs and ToR, and soft skills for less than 2000 civil servants • Training of Trainers Conference "Effective Support for Enlargement", Brussels 19.10.2009

8. Procedures Written procedures prepared: • Programming manuals, NAO, CFCD and NF Internal procedure Manuals, SPO manual of procedures, Monitoring and evaluation manuals, Communication guide, Decrees, Project Implementation manual, etc ) Conference "Effective Support for Enlargement", Brussels 19.10.2009

9. Programming Conferral of Management OP revision Implementation Donors, IFIs and CSOs consultation 2 major projects prepared, implementation to follow 24 July 2009, FA entered into force on 18 September 2009, Ongoing First installment transferred, procurement process ongoing Regular consultation process is ensured Component III Regional Development -status and main challenges- Conference "Effective Support for Enlargement", Brussels 19.10.2009

10. Programming Conferral of Management OP revision Implementation Donors, CSOs, social partners consultations Envisaged projects in three priority axes 16 October 2009 Commission Decision, FA signing in procedure Expected at the beginning of 2010 with launching of first calls for applications Regular consultation process established Component IV Human Resources Development-status and main challenges- Conference "Effective Support for Enlargement", Brussels 19.10.2009 Conference "Effective Support for Enlargement", Brussels 19.10.2009

11. Unique structure Programming Conferral of Management IPARD campaign Implementation MA and IPARD established IPARD Programme approved Accreditation package submitted, CoM expected in November 2009 Launching - end of October 2009 Beginning of 2010 Component V Rural Development-status and main challenges- Conference "Effective Support for Enlargement", Brussels 19.10.2009

12. Programming Conferral of Management Implementation Annual Programmes up to 2009, programming 2010 ongoing Expected first quarter 2010 Lessons learned applied Co-financing and ownership increased CPs, CAs and MBs coordination mechanism established ToRs prepared during programming process Revision of threshold of MIPD per priority axes Component I Transition Assistance and Institution Building – status and main challenges- Conference "Effective Support for Enlargement", Brussels 19.10.2009

13. Programming Implementation Co-financing Partnerships Info campaign 4 CBC OPs approved, CBC OP with northern border to be initiated Centralized management ongoing, DIS structure to be established Fiscal Decentralisation versus Co-financing arrangements Promotion of sustainable partnerships Info days and partner matching events organised COMPONENT II Cross Border Cooperation– status and main challenges- Conference "Effective Support for Enlargement", Brussels 19.10.2009

14. Monitoring Evaluation Procedures established Transitional phase ongoing, Operating structures to take over the responsibility to perform monitoring activities Clear segregation of responsibilities between NIPAC office and CFCD Capacity building for Interim evaluation Monitoring and Evaluation Schemes Conference "Effective Support for Enlargement", Brussels 19.10.2009

15. PIFC Public Procurement Internal Budgetary procedures Internal audit units established in 49 public sector entities on central level and 39 on local level. (121 internal auditors employed) Strategy for development of the system for public procurement, aimed for strengthening of capacity and system of public procurement is ongoing Co-financing obligation incorporated in the budgetary procedure. Further harmonization of relevant acquis Wider environmental framework Conference "Effective Support for Enlargement", Brussels 19.10.2009

16. IMMEDIATE CHALLENGES AHEAD – • To finalise the conferral of management processes in the 1 quarter of 2010; • Retention policy of civil servants; • Capacity Building and increase of number of employees as per WLA; • Increase capacities of the potential beneficiaries outside administration; • OPs revisions • Increase of number of participation in the CPs and CAs Conference "Effective Support for Enlargement", Brussels 19.10.2009

17. Mid-term and long term steps • Maintaining of the conferral of management powers • Minimize the staff turnover • Institution building of new IA’s • Absorption capacity (building) for Structural and Cohesion Funds… from 2014? or earlier? Conference "Effective Support for Enlargement", Brussels 19.10.2009