KAJ MORTENSEN, KAJ MORTENSEN,

HEAD OF SAPARD UNIT, DG AGRIHEAD OF SAPARD UNIT, DG AGRI

EUROPEAN COMMISSION EUROPEAN COMMISSION

Pre-accession Assistance for Pre-accession Assistance for Rural DevelopmentRural Development

2

1. Sapard – current situation1. Sapard – current situation

2. Instrument for Pre-accession – 2007-2. Instrument for Pre-accession – 2007-20132013

Content of the presentationContent of the presentation

3

Contracting finished mid 2004Contracting finished mid 2004

2006 is the last year of financial execution for new MS2006 is the last year of financial execution for new MS

Czech Republic already submitted final payment claimCzech Republic already submitted final payment claim

Contracting is continuing in Romania and Bulgaria until Contracting is continuing in Romania and Bulgaria until the data of accession or an agreed later datethe data of accession or an agreed later date

SAPARD - current situationSAPARD - current situation

4

EU Allocation, value of Sapard projects contracted, and payments EU Allocation, value of Sapard projects contracted, and payments made since the start of the programmes (Million €)made since the start of the programmes (Million €)

SAPARD - executionSAPARD - execution

Amount of annual EU allocation (EU contribution)

Value of Sapard projects contracted

Payments executed0

500

1.000

1.500

2.000

2.500

3.000 Millions

BG & RO

5

SAPARDSAPARD - Bulgaria- Bulgaria

VI. EU Allocation and the value of Bulgarian Sapard projects contracted since the start of the programmes (Mio EUR)

0

50

100

150

200

250

300

350

400

Millions

Allocations Bulgaria Contracts Bulgaria Payments to Bulgaria

6

SAPARDSAPARD - Romania- Romania

VI. EU Allocation and the value of Romania Sapard projects contracted since the start of the programmes (Mio EUR)

0

200

400

600

800

1.000

1.200

Millions

Allocation Romania Contracts Romania Payments to Romania

7

In 2007-2013In 2007-2013Six instruments to substitute more than 100Six instruments to substitute more than 100

Policy driven instruments: ► Instrument for Pre-Accession (IPA) ► European Neighbourhood & Partnership Instrument (ENPI)► Development Cooperation & Economic Cooperation Instrument

(DCECI)

Europe as a global Partner

Crises response instruments: ► Humanitarian Aid Assistance ► Macro-Financial Assistance (MFA)► Instrument for Stability

8

European Neighbourhood & Partnership Instrument (ENPI)

Continues TACIS and MEDA in the period 2007-2013►It focus on the implementation of the European Neighbourhood Policy

Action Plans jointly agreed with partner countries.►it will support measures aimed at:

- a progressive economic integration- deeper political cooperation- legislative approximation- institution building

- participation in EU Programmes & Agencies- inter-connections and development of common infrastructure, etc.

► Budget (2007-2013): €10.4 billion (at 2004 prices)

Neighbourhood Instrument

9

Instrument for Pre-accession (IPA) – timingInstrument for Pre-accession (IPA) – timing

New Framework for Pre-accession assistance will apply for New Framework for Pre-accession assistance will apply for the periode 2007-2013:the periode 2007-2013:

• Regulations will apply from Regulations will apply from 20072007

• The The financial envelopefinancial envelope for IPA (2007–2013) was agreed by for IPA (2007–2013) was agreed by the Council but is still under negotiation with the European the Council but is still under negotiation with the European Parliament (€ 10.2 billion at 2004 prices)Parliament (€ 10.2 billion at 2004 prices)

• overall objectiveoverall objective::„„The Community shall assist the potential and candidate countries in progressive The Community shall assist the potential and candidate countries in progressive alignment with the standards and policies of the European Union, including where alignment with the standards and policies of the European Union, including where appropriate the acquis communautaire, with a view to membership.“appropriate the acquis communautaire, with a view to membership.“

10

IPA – Beneficiary CountriesIPA – Beneficiary Countries

1.1. Transition Assistance & Transition Assistance &

Institution BuildingInstitution Building

2. Cross-Border Cooperation2. Cross-Border Cooperation

3. Regional Development3. Regional Development

4. Human Resources Development4. Human Resources Development

5. Rural Development5. Rural Development

Annex II: Albania, Annex II: Albania, Bosnia and Herzegovina, Bosnia and Herzegovina, Serbia and Montenegro,Serbia and Montenegro,incl. Kosovoincl. Kosovo

Annex I: Annex I: Croatia, TurkeyCroatia, TurkeyFYR of FYR of MacedoniaMacedonia

11

Multi-annual Indicative Financial Framework (MIFF)Multi-annual Indicative Financial Framework (MIFF)establishes the financial allocation between countries and componentsestablishes the financial allocation between countries and components

Multi-annual Indicative Planning Document (MIPD)Multi-annual Indicative Planning Document (MIPD) establishes strategies for each country for the IPA components, establishes strategies for each country for the IPA components, based on the priorities set in the Accession Partnership and the based on the priorities set in the Accession Partnership and the

Regular ReportsRegular Reports

Transition Transition & Institution& Institution

BuildingBuilding

Regional &Regional &Cross-BorderCross-Border

Co-opCo-op

RegionalRegionalDevelopmentDevelopment

Human Human ResourcesResources

DevelopmentDevelopment

Rural Rural DevelopmentDevelopment

ComponentsComponents

IPA – IPA – Policy framework and ProgrammingPolicy framework and Programming

12

IPA

Budget for 2007-2013

(indicative breakdown – Billion € at 2004 prices)

2007 2008 2009 2010 2011 2012 2013 total

1.193 1.290 1.353 1.452 1.565 1.660 1.700 10.213

13

IPA – Rural Development (IPARD)IPA – Rural Development (IPARD)

Support under this component shall in particulare Support under this component shall in particulare contribute to contribute to

• the sustainable adaptation of the agricultural sector the sustainable adaptation of the agricultural sector and rural areas and to and rural areas and to

• the CCs‘ preparation for the implementation of the the CCs‘ preparation for the implementation of the acquis communautaire concerning the Common acquis communautaire concerning the Common Agricultural Policy and related policies.Agricultural Policy and related policies.

14

IPARD - Priorities and MeasuresIPARD - Priorities and Measures

1.1. Priority: Sustainable adaptation of the agricultural sectorPriority: Sustainable adaptation of the agricultural sector

• Investments in farms to restructure and upgrade to the EU standards;Investments in farms to restructure and upgrade to the EU standards;• Supporting setting up of Producer groupsSupporting setting up of Producer groups• Investments in processing and marketing of agriculture and fishery products to Investments in processing and marketing of agriculture and fishery products to

restructure and upgrade to the EU standards;restructure and upgrade to the EU standards;• Preparation to implementPreparation to implement actions designed to improve the environment and the actions designed to improve the environment and the

country sidecountry side

2. Priority: Sustainable development of rural areas2. Priority: Sustainable development of rural areas

• Improving and developing rural infrastructure;Improving and developing rural infrastructure;• Development and diversification of rural economic activities;Development and diversification of rural economic activities;• Preparation of local private-public partnerships to implement local development Preparation of local private-public partnerships to implement local development

strategies; strategies; • Improvement of training; Improvement of training; Technical assistanceTechnical assistance

15

National contribution: 25% of public

aid

EU contribution up to 75% of

public aid Private

contribution

Co-Financing principlesCo-Financing principles

Public aid up to50% of total eligible costsof the investment

16

CONTRACTING CLAIM PAYMENTS CONTRACTING CLAIM PAYMENTS

CASH FLOW

CASH FLOW

INVESTMENTINVESTMENT

100 %100 %

60 +/- DAYS 60 +/- DAYS

GRANTGRANT

50%50%

Critical Beneficiary cash flowCritical Beneficiary cash flow

17

Possible fields of cooperation between EU Possible fields of cooperation between EU and IFIs/donorsand IFIs/donors

Improving the access to credits for SME, farmers in Improving the access to credits for SME, farmers in rural areasrural areas

Sector analysis, in-depth analysis for the IPARD Sector analysis, in-depth analysis for the IPARD programmeprogramme

Coordinated support for the preparation of IPARD Coordinated support for the preparation of IPARD e.g. WB Acquis cohesion project in Croatiae.g. WB Acquis cohesion project in Croatia

other areas of cooperation e.g. IPARD programme other areas of cooperation e.g. IPARD programme for Turkeyfor Turkey

18

Thank you for your attention!Thank you for your attention!

Pre-accession Assistance for Rural DevelopmentPre-accession Assistance for Rural Development