Training Programme on Contracts Implementation for End Recipients

1. Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey Training Programme on Contracts Implementationfor End Recipients Trainer: Aslı Gülgör Procurement and Contract Management Non Key Expert

2. IPA system/structure Where to start ?

3. Content EU Cohesion Policies Instrument for Pre Accession (IPA) in Turkey

4. EU Cohesion Policy: objectives 1. Improve cohesion: decrease economic and social disparities in EU 2. Increase competitiveness and environmental sustainability 3. Facilitate integration of member states

5. Background: disparities in EU

6. IPA Instrument for pre-accession

7. Instrument for Pre-Accession (IPA)Assistance for candidate and potential candidate countries for EU membership • Replaces: Phare, ISPA, CARDS, SAPARD, Pre-Acession Fund for Turkey • IPA aims to support candidate countries: • In policy development in the cohesion policy areas and transitional and institutional building • In preparing countries to effectively implement and manage the Community’s CohesionPolicy (Structural Funds) • Prepare the candidate countries for the programming, implementation and management of EU Cohesion Policies

8. IPA Instrument for Pre-accession Assistance New generation pre-accession instrument – simplified: replaces 5 former pre-accession instruments – flexible: tailor made assistance for progressive alignment with standards and policies of the EU Legal Basis • IPA Council Regulation (No 1085/2006 of 17 July 2006) established IPA • IPA Commission Implementing Regulation (No 718/2007 of 12 June 2007) spells in detail the implementation process

9. Scope of IPA Western Balkans and Turkey – in other words Potential candidates: Albania, Bosnia and Herzegovina, Montenegro, Serbia and Kosovo under UNSCR1244/99 Candidates: Croatia, Turkey and the former Yugoslav Republic of Macedonia Lifetime: 2007 – 2013 Budget: 11.5 billion euro 5 Components that replace 5 Instruments: Phare, CARDS, ISPA, Sapard and Turkey pre-accession assistance

10. Instrument for Pre-Accession (IPA) • Assistance for candidate and potential candidate countries for EU membership • IPA aims to support candidate countries: • In policy development in the cohesion policy areas and transitional and institutional building • In preparing countries to effectively implement and manage the Community’s CohesionPolicy (Structural Funds) • Prepare the candidate countries for the programming, implementation and management of EU Cohesion Policies • 3 IPA Regulations: Establishment of IPA, IPA impl. Regulation and amending regulation (see website DG Enlargement: www.ec.europa.eu/enlargement/index_en.htm )

11. IPA Pre-Accession Assistance 2007-2012 under Multi-annual Institutional Financial Framework

12. Key Principles of IPA • Managing structures should anticipate future management bodies under the Structural and Cohesion Funds • Structures should be set up at national level • Implementation of multi-annual programmes • Shift towards decentralized management (from DIS to EDIS accreditation); similar to shared management under cohesion instruments • Wide eligibility scope, closer to cohesion instruments • but: it is a pre-accession instrument

13. Co-financing under IPA • EU max 85% contribution in eligible costs • Other costs: national funds or other co-financing sources (local, private, NGOs) • In case of private sector investments • EU contribution lower than 85% • Specific rules for EU co-financing rate in case of state aid or net revenues

14. IPA in Turkey: current situation • SCF and OPs approved by European Commission • Turkey’s IPA Framework Agreement December 2008 • Signed financing agreements for all programmes (2009) • Technical assistance on IPA started • Project pipeline development in progress • First projects in implementation • Procurement and contracting to be shifted from CFCU to IPA centers for Comp. 3-5 in 2012

15. Programming IPA: Scope • Components of IPA: • I Transition Assistance and Institution Building; • II Cross-Border Cooperation; • III Regional Development; • IV Human Resources Development; • V Rural Development (IPARD)

16. Operational Programmes for IPA Turkey • Component Cross-Border: • - Regional cross border programmes BG-TK, Greece-TK • Comp. Regional Development: • - OP Regional Competitiveness • - OP Environment • - OP Transport • Comp. HR: • - OP Human Resource Development • Comp. Rural Development: • - Rural Development Plan

17. Component I:Institutional Building Beneficiaries: Public bodies and NGOs to finance capacity and institutional building Forms of assistance are e.g. : – Twinning, Twinning light, TAIEX – Investments in the regulatory infrastructure to support alignmentwith the EU norms and standards – Grant schemes (in Turkey: civil society, communications; see EU Delegation website) – Implementation of finance facilities in co-operation with IFIs

18. Component II: Cross-Border Cooperation • Beneficiaries: Public bodies, NGOs • Scope: • Transnational cooperation (Bulgaria, Greece) • Interregional cooperation • Investment and institutional building • Eligibility of actions: ERDF Regulation Article 21 of Council Regulation (EC) No 1083/2006 of 11 July 2006

19. Component III: Regional Development • Scope of actions consistent with eligibility Cohesion Fund and ERDF regulations • Transport infrastructure:TEN-T rail and roads and connecting infra, sustainable and urban transport, multi-modal programmes, maritime, communication • Environment projects: waste management, drinking water, waste water, air quality, nature preservation, energy efficiency, renewable energy and sustainable urban transport projects • Regional Competitiveness: regional infrastructure, tourism, industrial parks, innovation and SME development, urban development, health and social facilities

20. OP Transport Priorities • 1. Improvement of railway infrastructure in TEN-T Corridors • - High speed rail Istanbul-Bulgaria, Ankara-Konya • - Upgrading and electrification of railways • 2. Upgrading port infrastructure • - Fylios, Mersin, Çandarlı, Blacksea ports • 3. Technical assistance • - Project preparation, capacity building

21. OP Environment Priorities • 1. Improved water supply, sewerage and waste • water treatment services • - Waste water treatment Erzurum, Kırşehir, etc. • 2. Improved integrated solid waste management • - Solid waste Balıkesir, Kayseri, Çorum, Konya, etc. • 3. Technical assistance • - Project pipeline preparation, feasibility, etc.

22. OP Regional Competitiveness Priorities • Central and Eastern Nuts 2 Regions in Turkey are eligible!! • 1 Improvement of Business Environment • Business infrastructure, financing instruments, • tourism and innovation • 2 Strengthening of enterprise capacity and foster entrepreneurship • Support to SMEs and innovation • 3 Technical assistance

23. RCOP Budget • 1st package projects procurement state • 2nd project package 43 projects preparation and procurement • Projects to be created for 300 million euro 2011-2013 budget

24. Component IV: OP Human Resource Development • Scope of actions consistent with eligibility ESF and ESF regulations • To attract and retain more people in employment (women, young people, improvement of employment services of ISKUR) • To enhance investment in human capital by increasing the quality of education • To increase adaptability of workers, enterprises and entrepreneurs

25. Component V: OP Rural Development (IPARD) Priorities • 1. Improving market efficiency and implementation of community standards • Investments in farms & products, marketing and infrastructure • 2. Preparatory actions for implementation ofthe agri-environmental measures and Leader - Environmental measures and community init. • 3. Development of the rural economy • - Rural infra, diversification activities, training, TA

26. Management Types

27. IPA - management types • Decentralised Management: tendering and contracting - the beneficiary country • Centralised Management: tendering and contracting - the Commission/EC Delegation • Shared Management: only for Component II, CBC programmes between beneficiary countries and their MS neighbours • Joint Management: certain implementing tasks are delegated to International Organisations

28. DIS ex-ante Under a Decentralised system of management of EU assistance with ex-ante control, the Contracting Authority is an institution assigned to be so in the national administration. All steps of all transactions / decisions concerning the procurement and award of contracts are taken by the Contracting Authority and referred to the EUD for approval. Transactions / decisions related to financial and administrative management [e.g. payment to contractors, accounting] are not submitted to the EUD prior to execution

29. DIS ex-post Under a Decentralised system of management of EU assistance without ex-ante control, the Contracting Authority is an institution assigned to be so in the Turkish Administration. All steps of all transactions / decisions concerning the procurement and award of contracts are taken by the Contracting Authority and are not referred to the EU Delegation for approval. Transactions / decisions related to financial and administrative management [e.g. payment to contractors, accounting] are not submitted to the EUD prior to execution. For PHARE and ISPA, the system used to be referred to as EDIS, Extended Decentralised Implementation System Apart from exceptions to the standard procedures given in the Practical Guide

30. DIS Management TR LEGAL FRAMEWORK Prime Ministerial Circular, No. 2001/41 MoU on the Establishment of CFCU and MoU on the Establishment NF signed on 14 February 2002, approved by the Parliament (Law No. 4802) and published on 30 January 2003. The MoU for NF was amended by Law No. 5167. The MoU for CFCU was amended by Law No. 5500. Framework Agreement (adopted by Law No. 5303), and Council of Ministers Decree No. 2005/8636 This system was accredited by the European Commission on 8 October 2003 for projects other than grant schemes

31. PRAG Procurement Rules and Procedures 22-24 Feb 2011 Management Modes / Methods of Implementation This project is co-financed by the European Union and the Republic of Turkey Potential candidate and candidate countries Albania Bosnia and Herzegovina Croatia FYROM Iceland Kosovo under UNSCR nº 1244 Serbia Montenegro Turkey DCIS (IPA 1-2) DCIS (IPA 1-2) DIS – ex-ante DIS – ex-ante DCIS (IPA 1-2)/JM DCIS (IPA 1-2) DCIS (IPA 1-2) DIS – ex-ante

32. Programming Framework IPA MIFF Budgetary framework National Priorities (existing strategic planning documents, JIM, JAP) MIDP Community priorities Strategic Coherence Framework (SCF)coherence, concentration and coordination among programmes and priorities Regional development component Human resources component OP HRD OP Transport OperationalProgrammeENV OP Reg Comp

33. DIS Structure in Turkey Inter Institutional Chart

34. Structures and authorities to be in place: • National IPA Co-ordinator [NIPAC] • Strategic co-ordinator • Competent Accrediting Officer [CAO] • National Authorising Officer [NAO] • A National Fund [NF] • An Operating Structure [OS] (for each Component/Programme) • Audit Authority [AA] • End recipients – line ministry; water, rail or road company; regional waste operator; municipality; SME; farmer

35. Allocation of IPA funds per component for TurkeySource: Instrument for pre- accession assistance (IPA) revised multi- annual indicative financial framework for 2011-2013:www.abgs.gov.tr

36. For Turkey: 2007-2013 Total Budget allocation for Turkey under all IPA Components: 4,873 billion euros • Total Budget allocation for Component 3, Regional Development: 1,801 billion euros

37. Component 3: Regional Development 2007-2013 For 2007-2013 * Estimation for 2012-2013 based on the MIFF and 33% share of RCOP in Component 3.

38. INSTITUTIONAL SET UP UNDER IPA

39. Division of Responsibilities Institutions/bodies and their roles • National Authorizing Officer (NAO) • National Fund (NF) • Operating Structure/Contracting Authority (OS/CA) • End Recipient of Assistance (ERA) • European Union Delegation (EUD)

40. National Authorizing Officer(NAO) NAO - National Authorizing Officer (Ulusal Yetkilendirme Görevlisi) shall be responsible for as the head of the National Fund, bear overall responsibility forthe financial management of EU funds in the Beneficiarycountry; he shall be responsible for the legality and regularity of the underlying transactions; be responsible for the effective functioning of managementand control systems under the IPA Regulation.

41. National Fund (NF) National Fund is assisting the NAO in sound financialmanagement of the European Union funds and national co-financing resources by: – requesting funds from the Commission, timely, efficient and correct flow of funds from EU and co- financing sources; – organising the bank accounts; –authorising the transferof funds received from the Commission to the Contracting Authority/Operating Structures – drafting Governmental Decisions and laws/regulations onmatters related to the EU funds management – ensuring operational viable technical and financial reporting system – ensuring the protection of the EU and national financial interestsby setting up effective financial management and controlsystems to manage EU and national funds

42. End Recipient of Assistance (ERA) The institution/organisation that submits ……………………. called operation that is supported under the Regional Competitiveness Operational Programme in accordance with Article 158 of IPA Implementing Regulation. Officials appointed by lineministries/other institutions as the SRER (Senior Representative of the ERA) /ERA and Operation Coordination Unit (OCU) involved in the project who shallensure that the technical aspects concerning preparation andimplementation of contracts are carried out ineffective and timely manner.

43. The Delegation of the European Union to Turkey (EUD) The institution represents European Union Commission that provides advice to Contracting Authority as an observer in various meetings, performs ex-ante controls on tenders and contracting documents and monitors implementation.

44. Operating Structure/Contracting Authority( OS/CA) Established within the scope of IPA IR for all fiveIPA Components In respect of financial management, the main roles are: - request for funds - cash flow forecasting - payments to contractors/consultants - accounts management - financial reporting to EC and NF

46. Where are we now?

47. The project pipeline process

48. Operational Agreement

49. Parties Head of Operating Structure (hereinafter referred to as the HoS) ……………on behalf of the Ministry of Science, Industry and Technology (hereinafter referred to as the Operating Structure/Contracting Authority)On the one part, and ..................................... on behalf of End Recipient of Assistance (hereinafter referred to as the ERA) whose operation submitted according to article 158 of IPA Implementing Regulation deemed suitable to be supported under the methods and principles set forth in the international agreements, statutory laws, regulations, by laws and guidelines.

50. Purpose The purpose of this Agreement is to define the rights, obligations and responsibilities of the Operating Structure/Contracting Authority and End Recipient of Assistance in the efficient and timely implementation process of........................operation submitted by.........................in the framework of the RCOP.