Jorge CASQUILHO DG AGRI – EII.4 – Pre-accession assistance for agriculture and RD

1. EU experience on Pre-accession assistance for Agriculture and Rural Development. What can be done in the Western Balkans? Jorge CASQUILHODG AGRI – EII.4 – Pre-accession assistance for agriculture and RD CEI SEF Summit Meeting, Tirana, November 22-23rd 2006 Workshop: integration of Western Balkans agricultural markets into EU

2. Some facts on SAPARD • Pre-accession aid started in 1990 under PHARE, • In 2000 two new instruments started to operate: ISPA and SAPARD, • These were the 3 pre-accession instruments made available for the period 2000-2006. • SAPARD supports 10 Candidate Countries in their efforts to implement the EU acquis concerning to the Common Agricultural Policy and related policies and also in helping to solve priority and specific problems of rural areas. • Up to now more than 38 thousand projects were contracted under SAPARD, involving a EU Contribution of around €2,3 billion which implies a total estimated investment of around €5.5 billion. • In 2004 eight out of ten beneficiary countries which became MS managed to commit all available SAPARD funds, • Bulgaria and Romania are still benefiting from SAPARD until accession, • Croatia started implementing a SAPARD programme in 2006. • Upon accession all SAPARD beneficiary countries also benefited from having established administrative structures able to start the implementation of EU rural development measures.

3. The SAPARDmeasures • Investments in agricultural holdings • Processing and marketing • Quality control for food • Rural Infrastructure • Diversification • Land reparcelling • Land registers • Renovation of villages • Setting up Producer groups • Agri-environment • Forestry • Farm relief/management services • Water resources • Training • Technical assistance • Leader type approach

4. SAPARD EXPERIENCE CHOICE OF MEASURES IN SAPARD COUNTRIES (% of EU contribution as in the programmes 2000-2006)

5. New Financial perspectives « Europe as a global Partner » For the period 2007-2013 Six instruments to substitute more than 100 Policy driven instruments: ► Instrument for Pre-Accession (IPA) ► European Neighborhood & Partnership Instrument (ENPI) ► Development Cooperation & Economic Cooperation Instrument (DCECI) Crises response instruments: ► Humanitarian Aid Assistance ► Macro-Financial Assistance (MFA) ► Instrument for Stability

6. What is IPA? • IPA is an integrated Pre-Accession Instrument to assist candidate and potential candidate countries • It replaces 5 different programmes and instruments: Phare, ISPA, SAPARD, CARDS and Turkey pre-accession instruments • It will ensure: • Higher level of coherence and co-ordination of EU Assistance and • better preparation for Structural, Cohesion and Rural development Funds through progressive emulation of EU funds rules • Financial envelope allocated for the period 2007–2013: 10.2 billion € (at 2004 prices)

7. IPA – Components & Beneficiary Countries • Transition Assistance & • Institution Building • 2. Cross-Border Cooperation • 3. Regional Development • 4. Human Resources Development • 5. Rural Development (IPARD) Annex II: Albania, Bosnia and Herzegovina, Montenegro, and Serbia incl. Kosovo Annex I: Croatia, Turkey FYR of Macedonia

8. Objectives SAPARD = IPARD • Contribute to the implementation of the acquis communautaire concerning the Common Agricultural Policy • Contribute to the sustainable adaptation of the agricultural sector and rural areas in the candidate country

9. SAPARDlessons to be used under IPARD (I) • Need to better focus IPARD measures to the specific objectives of this component by: • Stronger focus on the EU acquis related issues namely on market efficiency, quality and health standards and • Concentrating the number of IPARD measures to the main priorities (from 16 measures under SAPARD to 9 under IPARD).

10. SAPARDlessons to be used under IPARD (II) • Need to improve the programming exercise by: • Enhancing the knowledge of the Agricultural and Rural situation of the country concerned, (in depth sector analyses for the main sectors to be supported must be carried out) • Better targeting the final beneficiaries of investment measures to those that have the possibility of having the capacity to compete in the EU and cannot make the necessary change using only their own funds. • Addressing the rural credits issues from the beginning of the exercise. • Addressing the advisory services issues in advance.

11. IPARD – 3 Priority Axes and 9 Measures • Priority Axis 1-Improving market efficiency and implementing Community standards • Investments in farms to restructure and upgrade to the EU standards; • Supporting setting up of Producer groups • Investments in processing and marketing of agriculture and fishery products to restructure and upgrade to the EU standards; • Priority Axis 2-Preparatory actions for implantation of the agri-environmental measures and Leader • Preparation to implement actions designed to improve the environment and the country side • Preparation of local private-public partnerships to implement local development strategies; • Priority Axis 3-Development of rural economy • Improving and developing rural infrastructure; • Development and diversification of rural economic activities; • Improvement of training; • Technical assistance

12. Co-financing principleSAPARD = IPARD Public aid up to 50% of total eligible costs of the investment

13. Beneficiary Cash flowSAPARD = IPARD 100 % GRANT CASH FLOW 50% INVESTMENT 60 +/- DAYS CONTRACTINGCLAIMPAYMENTS

14. IPARD basic conditions = SAPARD • IPARD Programme approved by a Commission Decision; • Bilateral agreement(s) legally biding both parties (Framework, sectoral, financial); • Managing Authority; • National Fund under the National Authorizing Officer’s responsibility; • Nationally accredited IPARD Agency to which the management of aid was conferred via a Commission Decision.

15. What must be done to benefit from IPARD?(I) • Establishing national structures able to define strategies, programmes, management and monitoring conditions for IPARD type programmes; • Enhancing the knowledge and the transparency of the Agricultural and Rural situation (rural census, farm register, land cadastre, price statistics, sector analysis for the more important agricultural sectors, etc); • Starting the definition of a National Strategy for Rural Development involving other public bodies and the relevant civil society partners;

16. What must be done to benefit from IPARD?(II) • The main public bodies that must be involved: • Veterinary authorities, • Environmental authorities. • Support the organization of the civil society partners, namely: • Farmers, • Food processors, • Environment and, • Local rural development associations.

17. What must be done to benefit from IPARD?(III) • Support initiatives to facilitate access to credits to farmers and rural business (not eligible under IPARD), • Establishment of advisory and extension services for farmers and rural population (not eligible under IPARD), • Try to gain experience through well defined and targeted ‘pilot projects ’

18. What must be done to benefit from IPARD?(IV) • Make use of all possible types of support, namely: • National resources, • IPA - Institution Building Component, • TAIEX, • IFI’s (World Bank, EBRD, etc.) • FAO, and other possible bilateral and multilateral support.

19. IPARD Web-Sites DG Agriculture http://www.ec.europa.eu/agriculture/external/enlarge/index_en.htm DG ENLARG http://www.ec.europa.eu/enlargement/countries/candidate_en.htm Commission Manual on Procurement Rules http://www.ec.europa.eu/comm/europeaid/index_en.htm