INTEGRATED TERRITORIAL DEVELOPMENT 2014–2020

Ministry of the Interior of LithuaniaRegional policy department

Andrius Valickas

REGIONAL POLICY

• Regional policy is important part of public policy

• Regional policy is consisting of vertical and horizontal, which includes many sectors policies, themes

• „two regional policies“:

• Regional policy of European Union

– Lithuania in the context of EU regional policy is one NUTS II region

• National regional policy

• These regional policies are combined as much as possible for seeking sinergy and most effective results

Provisions of 2007–2013

REGIONAL POLICY: INSTITUTIONS• Government– Making strategic decisions: approves priorities of national regional policy, composes National Regional

Development Council, approves criteria for problem territories, approves list of problem territories; strategies and inter-institutional programmes in field of regional development)

• Ministry of Interior– Coordination of national regional policy: approves target ministerial programmes, heads National Regional

Development Council, prepares draft inter-institutional programmes, and etc.

• National Regional Development Council– Consultative body, consisting of representatives of ministries, chairs of regional development councils,

social and economic partners. All main decisions before approval within the Government must be discussed within Council.

• Regional Development Councils– Making strategic decisions at regional level: approves regional development plans, list of projects to be

financed from structural funds and etc. Consists of mayors and members of municipal councils of the region as well as one representative of appointed by the Government

• Regional Development Department under the Ministry of Interior– performing functions of secretariat of regional development councils, drafting regional development plans

PROGRAMME ON REDUCTION OF SOCIAL AND ECONOMIC DISPARITIES

• Approved by the Government

• 2,5 billion Litas (apprx. 725 MEUR) for its implementation allocated for years 2007-2013 (EU structural funds, EEA and Norway grants, national and municipal budgets)

• Has vertical (growth centres, problem territories and rural areas) and horizontal (projects selected by the regional councils) approach

• Detailed via problem territories development programmes and regional economic growth centres complex development investment programmes

• Main objective – to reach that in all counties (regions) unemployment rate would not be higher than 135 percent of country’s average and average monthly income of inhabitants would not be less than 75 percent of country’s average in 2013

Percentage of EU structural support, allocated to national regional policy

89% 6%

5%

Mainstream

Regional planning (allmunicipalities)

Targeted territories

Ministry of the Interior

Government

Managing authority andministries (intermediate bodies)

Regional developmentdepartment under MoI

(territorial divisions)

Municipalities (beneficiaries)

Regional development council (1, 2,3... 10)

Implemetation at

the regional level

Regionaldevelopment

plan

Regionalprojects list

Initiatives(policy

making)

Administration, coordination,

monitoring

Policy making

Implementation

Regional policy (and EU SF

regional dimesion)

implemetation scheme

National regionaldevelopment council

Agencies (implementinginstitutions)

Regional and

local projects

Design of supportmeasures

Vertical of national regional policy

Vertical measures are implemented in targetterritories/sectors :

– Regional centers (7 cities) (incl. Visaginas, Ignalina nuclearpower plant region);

– Problem territories (14 municipalities);

Target sector – rural development, diversification of ruraleconomy.

Direct (vertical) measures of EU support:

Regional centers:

• Development of urban infrastructure and living envinronment,investment attraction (120,3 MEUR until 2013);

Problem territories

• Development of urban infrastructure and living envinronment,investment attraction (31 MEUR until 2013);

• Renovation of multiflat housing (47 MEUR until 2013);

• Development of social housing (11,8 MEUR until 2013).

Rural areas:

Development of public spaces and social infrastructure, diversification ofeconomic activity (100,4 MEUR until 2013)

Target

territories

2007-2013

REGIONAL GROWTH CENTRES

• All 7 have their development investment programmes approved by the Minister of Interior

• Projects target to improve business and living environment are being implemented.

Regional centre model. Single (complex) urbandevelopment measure

Accessability

Recreation, culture, wellness

Public spaces Infrastructure for SME’s

Brown-field conversion

PROBLEM TERRITORIES

• Selected by the criteria approved by the Government

• List of municipalities which are named as a problem territories is approved by the Government

• All 14 municipalities – problem territories have theirdevelopment programmes approved by the Government

Problem territory model. complex urban measure+sectoral measures

Housing, socialhousing

Urban, sub-urban mobility

Socialinfrastructure

Public spaces

Public spaces

LESSONS LEARNT

• As Lithuanian municipalities are rather big, problem territories covering territory of whole municipality are not effective

• Complex development makes biggest added value for development of territories

• Big cities also face challenges due to their unequal internal development

• Regional development councils should be strengthened

• More active participation of municipalities in regional development is needed

INTEGRATED TERRITORIAL DEVELOPMENT 2014–2020

Regional dimension of EU support 2014–2020

• Integrated approach at national level – coordination of actions between sectoral institutions via Regional development interinstitutional action plan (1040 MEUR for regional planning/and URBAN (ITI‘s), 15,1 percent ofstructural support);

• Integrated approach at regional level – coordination of actions between municipalities and other actors via regional development plan, approved by the Regional development council;

• Regional development council shall continue with pre-selection functions of local and regional projects

Ministry of the Interior

Government

Managing authority andministries (intermediate bodies)

Regional developmentdepartment under MoI

(territorial divisions)

beneficiaries

Regional development council (1, 2,3... 10)

Regionaldevelopment

plan

Initiatives(policy

making)

Administration, coordination,

monitoring

Policy making

Implementation

Regional policy 2014-2020

(and EU SF regional

dimesion) implemetation

scheme

National regionaldevelopment council

Agencies (implementinginstitutions)

Targetednational

interventions

ITI

Urban authority

CLLD

Implemetation at

the regional level

Integrated territorial investments (ITI)

URBAN challenges:

o Larger urban centres of Lithuania in past 10 years attracted

significant flows of internal migration, which led to increasing social

problems (including alcohol, drug abuse and crime rates) within

deprived neighbourhoods, also emigration to the foreign countries

and spread of cities into suburban territories, which leads to

unsustainable and costly use of urban infrastructure.

o Smaller cities suffer from severe depopulation (decrease of

population during 2006–2013 – 13.3 percent), ageing, insufficient

share of services in economic structure and low economic activity

(which limits youth employment possibilities and deepens

demographic challenges).

URBAN challenges:

o Interventions in the 2014-2020 period will primarily seek to increaseterritorial cohesion within regions, maximizing labour force potentialof subregional territories (deprived territories within bigger cities andmedium-small cities, facing specific challenges)

o One of key conditions to achieve this goal – is to utilize cross-sectoralapproach for integrated investments in the urban infrastructure.

Territorial scope of ITI in LT (I)

The territorial scope of ITI and CLLD implementation in urban areas:• 5 biggest cities, concentrating on: socially, economically

isolated, confronting environmental problems and material deprivation areas (neighbourhoods) (30-40 thus. inhabitants)

• Small and medium sized towns (over 6000 inh. and centres of municipalities, except 5 biggest) facing lower economic activity, employment diversity and demographic challenges

Specific target areas are selected according set of criteria, specific to each group.

Territorial scope of ITI in LT (II)

• 5 biggest cities – 1 ITI programme per city (1 or 2 target territories+adjacend territories)

• Small and medium sized towns – 1 ITI programme per region (10 programmes)

Selection of target territories

Specific target territories are selected according set of criteria or principals, specific to each group.

Bigger cities (URBAN/SUD/ITI)

5 biggest cities selected their target areas (30-40 thus. inhabitants) accordingprincipals set in PA (deprived neighbourhoods / sustainable development / employment / quality of life issues+potentials);

Small and medium cities (ITI)

23 target territories (small and medium towns) were selected by Ministry of Interioraccording to criteria:

• low economic activity;

• imbalanced economic structure (high dependence on raw materials or manufacturing) and low economic diversity (which does not allow for sufficient employment in the city or regional territory);

• significant depopulation due to migration or insufficient demographical change.

20 transition (phasing out) territories.

target

territories

2014-2020

•Integrated territorial development programmes (urban strategies) shall be

drafted by municipalities in cooperation with national, regional authorities and

local institutions (incl. ministries, universities, territorial labour exchanges, other

public subjects), social and economic partners and local community.

•Programme sets out list of operations and provisional guidelines for community

led local development strategies.

Participation of Urban authorities

Urban authorities role in ITI according ERDF regulation, Article 7

City (municipality) role:• selects target area(s), which the ITI program will be designed

for (in 5 bigger cities);• drafts the ITI program according to ITI guidelines (adopted by

Ministry of Interior );• Involves national, regional, local authorities and

social/economic partners while drafting the ITI program;• Involves local communities to set the list of operations and

provisional guidelines for CLLD strategies in the program(bottom-up approach)

• implements ITI program and submits the reports about results

Financial allocations1. Not less than 5 percent of ERDF shall be allocated for integrated

sustainable urban development actions – dealing with problems of economic, social, environmental (including climate change) an demographic character (implementation model – ITI, territory – 5 biggercities);

2. ITI shall be financed from at least 2 priority axes –

URBAN type actions – promoting employment and supporting labour mobility; (ERDF)

CLLD – promoting social inclusion and combating poverty (ESF);

Fund

Indicative breakdown of ERDF support for ITI in

accordance with Article 7(2) of the ERDF

Regulation by priorities and indicative breakdown

of ESF support for integrated actions

Percentage of Fund’s total

allocations to Operational

programme

Total ERDF 204,700,000 5.85

Total ESF 6,001,000 0.53

Total (ERDF+ESF) 210,701,000 4.55

OP priorities, contributing to ITI (all target towns and cities)

Priority FundIndicative amount

(Community support)

Strengthening competitiveness of SMEs ERDF 25,000,000

Promoting energy efficiency, and production

and consumption of RES

ERDF,

CF

ERDF: 85,000,000

CF: 5,000,000

Environment, sustainable use of natural

resources and adaptation to climate change

ERDF,

CF

ERDF: 25,000,000

CF: 50,000,000

Developing sustainable transport and key

network infrastructures

ERDF,

CF

ERDF: 30,000,000

CF: 30,000,000

Promoting quality employment and

participation in the labour marketERDF ERDF: 116,427,000*

Promoting social inclusion and combating

poverty

ERDF

ESF

ERPF: 30,000,000

ESF: 8,480,000**

Education of the society and strengthening of

the potential of human resources

ERDF

ESF

ERPF: 35,000,000

ESF: 5,000,000

Total 489,907,000

City/cities

ITI territory

Demographics

Economics

Social development

Environment

Climate change

Target

territory

Integrated projects

(specific objective 7.1.1 of

priority 7)

CLLD (specific objective 8.6.1

of the Priority 8)

Integrated territorial development programme

(strategy) (using ITI)

Other operational priorites –

contribution: transport,

environment, energy, social

services, etc. (to tackle

specific problems)

CLLD of rural areas

Urban/rural cooperation

Links with suburban/rural territories

CLLD beyond

target territory

(optional)

ITI model

Integration of actions in ITI programs

Sectorial integration (horizontal): is about ‘joining up’ different policy sectors andtheir associated actors within a selected areas. Two dimensions can bedistinguished: 1) cross-sectoral integration between different policy areas, whichcan operate at a territorial scale; 2) stakeholder integration between public,private and voluntary sector.

Territorial integration (vertical): some developments of territorial structures orsystems which are planned under ITI program due to their positive or negativeexternalities, internal territorial relations and complexity of their nature cannotbe easily split up into different parts and attributed to the sectorial institution andinvestment priority.

As horizontal integration is not always sufficient to tackle cross cutting issues, it should also include vertical integration – the instrument for that is ITI program

THEMATIC OBJECTIVE 8/PRIORITY AXIS 78. Promoting employment and supporting labour mobility

INVESTMENT PRIORITY:

b. (7.1) supporting employment friendly growth through the development of endogenous potential as part of a territorial strategy for specific areas, including the conversion of declining industrial regions and enhancement of accessibility to and development of specific natural and cultural resources.

Specific objective 7.1.1: To diversify economic activities and improve conditions for attracting investment in support of job creation in target territories (urban areas)

FUND: European Regional Development Fund

Investments under investment priority 7.1

Are allocated to target territories

Cover a range of investments to be made in a particular area, with the aim - to promote employment friendly urban regeneration and growth.

Investments attributable to urban development must be:

• Concentrated in the area;

• Focused on the essential problems of the area;

• Integrated with other investments (incl. private) made (and/or) soft measures implemented in that area;

• Having a strong territorial integration dimension within a single action.

Investments under investment priority 7.1 (315 MEUR):• Conversion of under-used or abandoned infrastructures and

territories, creating conditions to attract new commercial activities, adapting them social and cultural infrastructure, community activities.

• Modernisation of public spaces by forming additional or new, or strengthening the existing, urban attraction centres by making use of the elements of the nature frame, cultural heritage, urban structures and landscape that shape local identity

• Improvement of the living environment in residential districts, by setting up or renovating small-scale community infrastructure, cleaning the environment, investing in green infrastructure and accessibility of these territories (e.g. walking and cycling paths).

• Formal and informal education

• Social services (community services)

• Health (of targeted groups)

• Employment and business, R & D, creative industries, green technologies, social business

• Multiflat housing renovation

• Basic infrastructures, transport, sustainablemobility

• Modernization of social infrastructures

• Actualization of herritage

• Envinronmental engineerig

Suplementing actions:

CLLD as a part of URBAN and ITI

o Use of CLLD in urban areas is seen as a possibility of bettercoordination of „soft“ and „hard“ ITI based instruments forsustainable urban development and to achieve the highestvalue–added and efficiency of public investments in urbanareas.

o Basic urban infrastructure is maintained/developed by publicauthorities/enterprises, though shall not be an object of CLLD

To make it more complicated

5 bigger cities:

ITI = sustainable urban development, CLLD –obligatory part of SUD and ITI;

Medium and small cities:

ITI ≠ sustainable urban development (althoughuses same principles and planningmethodology), CLLD – mandatory part of ITI.

Example: ITI program of Klaipėda city

Target territory selected in Klaipėda

• target territory – 233 ha related territory – 510 ha

Projected new bridge

Football school

Dane waterfrontII watering station

public space at former „Vaidila“ cinema

public spaces in residential areasDane square

Program target - Creating favourableenvinronment for SMEs

Coherent projects, which helps to reach the target:1) Culture factory (already operational)+2) Construction of a new drawbridge through Dane and access

arrangements in the northern coast of the Dane river (priority axis 7),Dane square reconstruction+

3) Dane river waterfront reconstruction inducing small scale businesses (priority axis 7)+

4) Renovation of residential quarter (lighting system and buildingrenovation via financial instruments) and public spaces (targetterritory) (priority axis 5,7)+

5) Construction of Bastions st. section, reconstruction of the junction of the Old market (priority axis 6)+

6) Cultural connections program (national financing)+7) target business support (creative and cultural industries) self-

employment (individual training and advice on new business development and management) (priority axis 3, 8 (CLLD), nationalfinancing)

Impact of the set of projects to integrated urban development

• Provides a link between 2 key core parts of a city – historical centre and the new commercial centre, joins up potentials

• Increases attraction of a territory for private investments, creates a “honey-pot” for local residents (new opportunitiesfor SMEs)

• Increases desirability and improves living conditions in thetarget area

• Removes transport bottleneck in the historical city centre (noise, pollution, CO2)

• Improves accessibility to the target area

THEMATIC OBJECTIVE 9/PRIORITY AXIS 8:

promoting social inclusion and combating poverty

INVESTMENT PRIORITY:

(vi)/8.6 Community-led local development strategies

Specific objective 8.6.1: Improve local employability and enhance social

integration of communities, by making use of relationship among local

communities, businesses and local governments

FUND:

European Social Fund

CLLDimplementation in urban areas

• CLLD in urban areas shall be coordinated by the Ministry of the interior, CLLD in rural areas and fisheries regions – by the Ministry of Agriculture.

• Local development strategies, drafted by LAG’s shall be approved by Joint selection committees (each for respective group of territories), representing Managing authority, ministries, social and economic partners;

• LAG’s shall perform functions, related to drafting and implementing Local development strategies (drafting strategy; capacity building; cooperation; setting out selection procedures and selecting operations (projects));

CLLD strategies’ compatibility/complementarities

CLLD implementation in urban areas (municipal centresand towns over 6000 inhabitants)

Delimitation

Fund – European Social fund

CLLD implementation in rural areas (under 6000 inhabitants, except municipal centres )

Fund – EAFRD

Possibility of combination of two instrumentsavailable for sustainable urban development - ITIand CLLD - to achieve the highest value – added andefficiency of public investments in the urban areas.

Encouraging local rural communities to participate in solving local development problems.

Successful implementation of some initiatives may/will need tocross physical boundaries of cities, towns, fisheries regions andrural areas.It is also important to encourage sharing of experience whileimplementing all types of strategies.Therefore it is advisable to designate part of funding (5-10percent) to implement cooperation activities.

CLLD implementation in fisheries regions

Delimitation

Fund – EMFF

Encouraging local fisheries regions’ communities to participate in solving local development problems.

CLLD implemeting procedure (I) (outside of ITI)

ESFA

(implementing agency

Municipality

Bussiness

organizations

Communities

and NGO‘s

LAG

Aplication for

preparatory

support

Drafting local

development

strategy

Selectingand

approvinglocal

development strategy

MoIJoint selection committee

Setting upproject

selectionprocedure

LAG

Preparatory

support (3000

EUR)

2015 2016

CLLD implemeting procedure (I) (inside ITI)

ESFA

(implementing agency

Municipality

Bussiness

organizations Communities

and NGO‘s

LAG

Drafting local

development

strategy

approvinglocal

development strategy

(compatibility check)

MoIJoint selection committee

Setting upproject

selectionprocedure

LAG

Preparatory

support (3000

EUR)

2015 2016

Drafting ITI programme

LAG formation starts in paralelwith drafting ITI programme;

ITI programme sets targets for CLLD

Community initiatives (generalized) –part of ITI programme

CLLD implemeting procedure (II)

Validates theproject list

beneficiaries

LAG

Preliminary

selection of

projects

MoIPresentingproject list

to MoI

Standart

state

project

procedure

THANK YOU FOR YOUR ATTENTION