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IPA – European pre-accession funds Martin Kern, Head of Operations

THE INFRASTRUCTURE SECTOR IN SERBIA: OPPORTUNITIES AND LEGAL FRAMEWORK Financial Instruments and Support to Investment Projects. IPA – European pre-accession funds Martin Kern, Head of Operations Delegation of the European Union to the Republic of Serbia 15 April 2013

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IPA – European pre-accession funds Martin Kern, Head of Operations

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  1. THE INFRASTRUCTURE SECTOR IN SERBIA: OPPORTUNITIES AND LEGAL FRAMEWORKFinancial Instruments and Support to Investment Projects IPA – European pre-accession funds Martin Kern, Head of Operations Delegation of the European Union to the Republic of Serbia 15 April 2013 Seminar organised by Confindustria, Italy Belgrade, Hotel Falkensteiner

  2. EU assistance to Serbia • Goal: improve the efficiency of the Community's External Aid • Instrument of Pre-accession - new framework for programming and delivery of assistance, constituting one of the general instruments directly supporting European External Aid policies. • The overall objective of EU financial assistance to Serbia is to support the country's reform efforts and its movement towards compliance with the EU acquis, so that it becomes capable of taking on the obligations of European Union membership. • Assistance for candidate countries as well as for potential candidate countries to support them in their efforts to strengthen democratic institutions and the rule of law, reform public administration, carry out economic reforms, respect human as well as minority rights, promote gender equality, support the development of civil society and advance regional cooperation as well as reconciliation and reconstruction, and contribute to sustainable development and poverty reduction in these countries, and it should therefore be targeted at supporting a wide range of institution-building measures. • Assistance for candidate countries: focus on the adoption and implementation of the full acquis, and in particular prepare candidate countries for the implementation of the Community's agricultural and cohesion policy.

  3. EU assistance to Serbia IPA 2007-2013 • Assistance is programmed and implemented according to the following components: • Transition Assistance and Institution Building; • Cross-Border Cooperation; • Regional Development; • Human Resources Development; • Rural Development. • Only components 1 and 2 are now open for Serbia • IPA II will be 2014 – 2020: sector approach

  4. EU assistance funds • 1999-2006: CARDS managed by the European Agency for Reconstruction • 2007 to 2012: IPA implemented by EU Delegation • 2013 – onwards: national authorities • Since 2000, Serbia received a total of €2 billion from IPA and CARDs Programming: • European Partnership (2008) by the European Council • Multi-Annual Indicative Programme by the European Commission • Annual programme: drafted by Serbian Authorities, adopted by the European Commission • Financing Agreement signed by both • € 653 million contracts ongoing (number of contracts: 673) • € 300 million tenders ongoing or about to be launched - 136 tendering procedures (IPA 2009 - 2012) • € 953 million in total

  5. The Sector approach - MIPD sectors • The Multi-annual Indicative Planning Document (MIPD) is to set out the EU's priorities for assistance to Serbia for the programming period 2011-2013. • Based on the needs identified in the European Partnership of the country as well as the latest Enlargement Strategy and Progress Report (adopted on 9 November 2010) • The Government of Serbia, local stakeholders, EU Member States and other donors have all been consulted in the design of this MIPD. • Set to increase the impact of IPA and to place a greater focus on achievable results, the Commission has decided to concentrate its efforts on targeted sectors. • A sector approach facilitates cooperation among donors and beneficiaries, where possible under the lead of the national authorities, eliminating duplication of efforts and leading to greater efficiency and effectiveness. • This in turn allows all stakeholders to focus more on the impact of our combined efforts.

  6. Some sectors financed by IPA 2011 and 2012 Transport: € 13.8 million • Modernisation of railways € 8.3 million • Access roads to the Zezelj bridge € 5.5 million Environment, Climate Change and Energy: € 95.75 million • Construction of wastewater treatment facilities: € 15 million • Municipal environment grant loan investment programme: € 19.1 million • Law enforcement in the field of industrial pollution control, prevention on chemical accidents and establishing the EMAS System: € 3 million • Capacity building for the Energy Agency: € 1.5 million • Support to Environmental Protection and Climate Change: € 55.15 million • Support to improvement of energy efficiency: € 2.0 million Private Sector Development (Competitiveness): € 26.68 million Socio-economic development in the Danube region € 18.5 million • Support to SME development € 6.18 million

  7. Decentralized Management Implementation • The Government of Serbia is developing its administrative and technical capacities in relation to the management of the Instrument for the Pre-Accession (IPA) under a Decentralised Implementation System (DIS). • Preparation for the accreditation for Decentralized Management Implementation • Key institutional roles are allocated: CAO, NIPAC, NAO, PAO, SPOs • Accreditation Packages were submitted in June • DIS structures and mainly National Fund, CFCU and NIPAC continue to receive extensive training • There are several issues, which have to be tackled before the conferral of management can be granted: • The Audit Authority has to become operational as it has a critical role in the accreditation process and start up of DIS. • Preparations of a new IPA Regulation is under way for the next Multiannual Financial Framework

  8. Key on-going (recently completed) EU projects along Corridor VII (Danube) • €11 M: RIVER INFORMATION SERVICES • €6.4 M: UXO IN DANUBE: SURVEY, SEARCH & REMOVAL • €2.2 M: PREPARATION OF DOCUMENTATION FOR RIVER TRAINING AND DREDGING WORKS IN THE DANUBE • REHABILITATION OF ŽEŽELJ BRIDGE ACROSS THE DANUBE RIVER IN NOVI SAD (€28.1 M, INCL. SUPERVISION ) – PARALLEL CO-FINANCING WITH SERBIAN GOV’T (€19 M)

  9. DESTROYED/FUTURE ZEZELJ BRIDGE

  10. RIS - OUTLINE • 50 GOVERNEMENTAL VESSELS EQUIPPED WITH RIS MODULES • AIS NETWORK: COVERAGE - 100% OF THE SERBIAN DANUBE • 160 COMMERCIAL VESSELS EQUIPPED WITH RIS MODULES

  11. Lessons learned: infrastructure projects • Strategic selection of projects pipeline • Quality of feasibility study • Clear institutional responsibility and coordination • Financial engineering • Financial sustainability

  12. IPA 2013 • IPA 2014 – 2020 STATE OF PLAY

  13. Thank you for your attention! For more information: EU Info Centre Dečanska 111000 Belgrade, Serbia www.euinfo.rs

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