Operational Programme Innovation and Competitiveness …OPIC 2014-2020, 2014BG16RFOP002 March 2015...

OPIC 2014-2020, 2014BG16RFOP002 – March 2015

Operational Programme

„Innovation and

Competitiveness”

2014-2020

March 2015


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TABLE OF CONTENTS

1. Strategy for the operational programme's contribution to the Union strategy for

smart, sustainable and inclusive growth and to the achievement of economic,

social and territorial cohesion ...................................................................................... 7

1.1. Strategy for the operational programme's contribution to the Union strategy for

smart, sustainable and inclusive growth and to the achievement of economic,

social and territorial cohesion ...................................................................................... 7

1.1.1. Description of the programme‘s strategy for contributing to the delivery of the

Europe 2020 strategy and to the achievement of economic, social and territorial

cohesion. ....................................................................................................................... 7

1.1.2. Justification for the selection of thematic objectives and corresponding

investment priorities ................................................................................................... 42

1.2. Justification of financial allocation ............................................................................ 48

2. Proirity Axes .............................................................................................................. 55

2.1. Priority Axis 1: Technological development and Innovation .................................... 56

2.1.1. Investment Priority 1.1. Technological development and innovation ....................... 56

2.1.2. Performance framework of the priority axis .............................................................. 66

Categories of intervention ........................................................................................................ 67

2.2. Priority Axis 2: Entrepreneurship and Capacity for growth of SMEs ....................... 69

2.2.1. Investment Priority 2.1. Access to finance for supporting entrepreneurship ............. 69

2.2.2. Investment Priority 2.2: Capacity for SMEs to grow ................................................. 75

2.2.3. Performance framework for the implementation of the priority axis ........................ 83


2.3. Priority Axis 3: Energy and Resource Efficiency ...................................................... 86

2.3.1. Investment Priority 3.1: Energy technologies and energy efficiency ........................ 87

2.3.2. Investment Priority 3.2: Resource Efficiency ............................................................ 92

2.3.3. Performance framework for the implementation of the priority axis ........................ 97


2.4. Priority Axis 4 – Removing bottlenecks in security of gas supplies ........................ 100

2.4.1. Investment priority 4.1: Improving energy efficiency and security of supply

through the development of smart energy transmission systems ............................. 100

2.4.2. Performance framework for the implementation of the priority axis ...................... 104

Categories of intervention (by priority axis) .......................................................................... 105

2.5. Priority Axis 5 – Technical Assistance .................................................................... 106

Categories of intervention (by priority axis) .......................................................................... 112

3. Financial plan OPIC 2014-2020 ............................................................................... 114

4. Integrated approach to territorial development ........................................................ 117


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5. Specific needs of geographical areas most affected by poverty or target groups

at highest risk of discrimination or social exclusion ................................................ 120

6. Specific needs of geographical areas which suffer from severe and permanent

natural or demographic handicaps ........................................................................... 120

7. Authorities and bodies responsible for management, control and audit and the

role of the relevant partners...................................................................................... 121

7.1. The authorities and bodies responsible for management, control and audit. ........... 121

7.2. Involvement of relevant partners ............................................................................. 122

8. Coordination between the funds, EAFRD, EMFF and other Union and national

funding instruments, and EIB .................................................................................. 128

9. Ex-ante conditionalities ............................................................................................ 137

9.1. Description of the actions which will be taken to implement ex-ante

conditionalities, responsible authorities and timeframe of these actions ................. 138

10. Reduction of the administrative burden for the beneficiaries .................................. 264

11. Horizontal principles ................................................................................................ 268

12. Separate Elements .................................................................................................... 272

12.1. Relevant partners involved in preparation of programme ........................................ 272

TABLES

Table 1-1: Macroeconomic projections4F ...................................................................... 10

Table 1-2: Barriers for innovation development in selected sectors ............................... 17

Table 1-3: Enterprises by size, number of employees and value added ......................... 20

Table 1-4: Enterprises by size, sectors, number of employees and value added by sectors

................................................................................................................................. 20

Table 1-5: Distribution of financial instruments for OPC 2007-2013 ............................ 36

Table 1-6: Overview of the justification for the selection of thematic objectives and

investment priorities ................................................................................................ 43

Table 1-7: Overview of the investment strategy of the Operational Programme ........... 53

Table 2-1: Programme-specific result indicators for ERDF ........................................... 57

Table 2-2: Common and programme specific result indicators for the ERDF ............... 63

Table 2-3: Performance framework for the implementation of Priority Axis 1 ............. 66

Table 3-1. Financial plan of the Operational Programme giving the annual commitment

of the European Regional Development Fund (ERDF) in the Operational

Programme (Euro) per category of regions * ........................................................ 114


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Table 3-2 Financial plan of the Operational Programme, showing the amount of the total

financial allocation of each fund in the Operational Programme, national funding

and co-financing by priority axis for the whole programming period (EUR)....... 115

Table 3-3 Breakdown of the financial plan by priority axis, fund, category of region and

thematic objective for the ERDF, the ESF and the Cohesion Fund (Table 18b 19)

(Art. 87 (d) (ii) of the General Regulation) (EUR) ............................................... 116

Table 7-1: Identification and contact details of the relevant competent authorities/bodies

............................................................................................................................... 121

Table 9-1 Applicable ex-ante conditionalities and assessment of their fulfilment ....... 139

Table 9-2 Actions to fulfil applicable general ex-ante conditionalities ........................ 246

Table 9-3 Actions to fulfil applicable thematic ex-ante conditionalities ...................... 249

FIGURES

Fig. 1. Innovative characteristics of SMEs ..................................................................... 15

Fig. 2. Business expenditures on R&D by economic activity (% of total business

expenditure on R&D) .............................................................................................. 16

Fig. 3. Structure of the Bulgarian export by groups of goods for 2011 .......................... 23

Fig. 4. Final energy consumption (FEC) in Bulgaria during the period 2000-2011 by

economic sectors ..................................................................................................... 26

Fig. 5. Primary and final energy intensity 2000-2011 ..................................................... 27

Fig. 6. Protecting and restoring environment costs by sectors (as % of GDP) ............... 29

Fig. 7. Distance from the average values for EU ............................................................ 30

Fig. 8. Resource productivity ......................................................................................... 31

Fig. 9. Areas of support under Operational Programme ―Development of the

Competitiveness of the Bulgarian Economy‖ 2007- 2013 ...................................... 33


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LIST OF ABBREVIATIONS

BSMEPA Bulgarian Small and Medium Enterprises Promotion Agency

CSF Common Strategic Framework

DAE Digital Agenda for Europe

EFRD European Fund for Regional Development

EMFF European Maritime and Fisheries Fund

ESIF European Structural and Investment Funds

EU European Union

ExEA Executive Environment Agency

FDI Foreign Direct Investment

GDP Gross Domestic Product

GVA Gross Value Added

IP Investment Priority

IP Intellectual Property

RIS 3 Innovation Strategy for Smart Specialization

ICT Information and Communication Technologies

MA Managing Authority

MAF Ministry of Agriculture and Food

MEE Ministry of Economy and Energy

MES Ministry of Education and Science

MEW Ministry of Environment and Water

NSI National Statistics Institute

NIF National Innovation Fund

NSPSMEs National Strategy for Promotion of SMEs

OP Operational Programme

OPDCBE Operational Programme Development of the Competitiveness of Bulgarian

Economy

OPE Operational Programme Environment

OPGG Operational Programme Good Governance

OPHRD Operational Programme Human Resourse Development

OPIC Operational Programme Innovation and Competitiveness

OPRG

OPSEIG

Operational Programme Regions in Growth

Operational Programme Science and Education for Intelligent Growth

OPTTI Operational Programme Transport and Transport Infrastructure

PA Priority Axis

PMAF Program for Maritime Affairs and Fisheries


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R&D Research and Development

RES Renewable Energy Sources

RDP Rural Development Programme

SEDA Sustainable Energy Development Agency

SME Small and Medium-size Enterprise

TO Thematic Objective

UMIS Unified Management Information System for the EU Structural Instruments

in Bulgaria


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1. STRATEGY FOR THE OPERATIONAL PROGRAMME'S CONTRIBUTION TO THE

UNION STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH AND

TO THE ACHIEVEMENT OF ECONOMIC, SOCIAL AND TERRITORIAL COHESION

This chapter contains the description of the strategy of the Operational Programme

―Innovation and Competitiveness‖ (OPIC) and the justification for the financial allocation

to each thematic objective and investment priority.

1.1. Strategy for the operational programme's contribution to the Union

strategy for smart, sustainable and inclusive growth and to the

achievement of economic, social and territorial cohesion

1.1.1. Description of the programme’s strategy for contributing to the delivery of the

Europe 2020 strategy and to the achievement of economic, social and

territorial cohesion.

STRATEGIC CONTRIBUTION OF OPIC 2014-2020

The OPIC 2014-2020 strategy, as a part of the implementation of the EU structural and

investment funds (ESIF) in Bulgaria, according to the Partnership Agreement 2014-

2020, is closely related to the objectives for Growth and Jobs and Bulgaria‘s

contribution to achieving the three complementary types of growth according to the

"Europe 2020":

Smart growth: developing an economy based on knowledge and innovations;

Sustainable growth: promoting a greener and more competitive economy and a

more efficient use of resources;

Inclusive growth: fostering a high-employment economy leading to social and

territorial cohesion.

OPIC 2014-2020 directly engages in smart growth (under priority axes 1, 2) and

sustainable growth (under priority axes 3 and 4), aiming at complementary effect

in terms of inclusive growth.

The support under OPIC 2014-2020 aims at addressing the needs, overcoming the

challenges and seizing the opportunities for development of Bulgarian economy,

defined according to:

Documents0 F

1 Objectives/priorities/needs

The National Development

Programme: Bulgaria 2020 (NDP BG

2020) – the leading strategic and

Strategic Oblective 3: Increasing the

competitiveness of the economy by

providing a favourable business

1 COM(2013) 352 final, Council‘s Recommendation on the National Reform Programme of Bulgaria for 2013 and the

Council‘s Opinion on the convergence programme of Bulgaria for the period 2012-2016 Ref. Ares(2012)1273775 -

26/10/2012, Position of the Commission services on the development of the Partnership Agreement and the

programmes of Bulgaria for the period 2014-2020 , etc.


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Documents0 F


programme document which defines the

objectives of the policies for socio-

economic development of the Republic of

Bulgaria by 2020, as well as the national

decisions for growth in the context of

"Europe 2020" Strategy.

environment, promoting investments,

applying innovative solutions and

increasing resource efficiency

Priority 5 ―Support innovation and

investment activities to increase the

competitiveness of the economy‖

Priority 7 ―Energy security and increasing

resource efficiency‖

The National Reform Programme

(NRP) reflects on an annual basis the

country's progress in implementing the

national targets in the context of Union

Strategy ―Europe 2020‖ and the progress

on the recommendations of the Council

National Objective 2 Investment in R&D

to the amount of 1.5% of the GDP; support

for promoting R&D and innovation

activities of enterprises (in accordance with

the flagship initiative "Innovation Union")

National Objective 3 under ―Climate and

Energy‖ Package – ―Reaching 16% share

of renewable energy sources in the gross

final energy consumption1F

2 and increasing

energy efficiency by 25% till 2020"(in line

with the flagship initiative UResource

Efficient EuropeU)

Position of the Commission services on

the development of the Partnership

Agreement and the programmes of

Bulgaria for the period 2014 – 2020

Priority 2 Innovation-friendly business

environment

Priority 3 Modern infrastructure for

growth and jobs

Priority 4 Environmentally sound and

resource-efficient economy

Recommendation of the Council on the

National Reform Programme of Bulgaria

for 2013 also containing the Council‘s

opinion on the Convergence programme

of Bulgaria 2012-2016

Recommendation 4 ―…by enhancing the

cooperation between education, research

institutes and enterprises"

Recommendaion 5 "... to improve the

access to finance for SMEs and start-ups."

Recommendation 7 ―….Accelerate

electricity and gas interconnector projects

and enhance the capacity to cope with

disruption. Step up efforts to improve

energy efficiency"

Recommendation of the Council on the

National Reform Programme of Bulgaria

for 2014 also containing the Council‘s

Recommendation 6 ―…..Accelerate

interconnector projects with neighbouring

Member States and candidate countries,

2 The target is achieved – in 2012 the share was 16.3%. Currently efforts are focused not on increasing RES but rather

on the need for balancing the energy system.

http://ec.europa.eu/resource-efficient-europe/index_en.htm

http://ec.europa.eu/resource-efficient-europe/index_en.htm


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Documents0 F


opinion on the Convergence programme

of Bulgaria 2012-2016

in particular for gas, and enhance the

capacity to cope with disruptions.

Partnership Agreement of the Republic

of Bulgaria outlining the support under

the European Structural and Investment

Funds for the period 2014 – 2020

Strategic priority 2: Scientific research,

innovation and investment for smart

growth

Strategic priority 3: Connectivity and

green economy for sustainable growth

OPIC 2014-2020 is an essential tool for the implementation of the policies laid down in

the following national strategies:

The National Strategy for Promotion of Small and Medium–size Enterprises

2014-2020, representing the vision of the Republic of Bulgaria on state support

for SMEs in line with the EU policy. The need to create about 12 000 new SMEs

distributed in the relevant sectors of the economy, especially in the industrial and

knowledge-intensive services, has been taken into account. OPIC 2014-2020

contributes to achieving the objectives in five priority areas of the National

Strategy for Promotion of SMEs – entrepreneurship, access to finance, skills and

innovation, environment and internationalisation.

Innovation Strategy for Smart Specialisation of the Republic of Bulgaria

(RIS3), which has the nature of an ex-ante continionality for OPIC 2014-2020 and

aims at ensuring an effective and coordinated management of innovation

processes; strengthening the innovation system by building a modern innovation

and scientific infrastructure, enhancing human capacity in response to the needs of

science and industry and introduction of specific financial instruments of support;

support for the digital growth and e-government. The strategy deals with the

approach of determining thematic objectives (based on the so-called process of

entrepreneurial discovery) with the potential to become ―generators of growth" for

achieving significant economic impact at regional and national level.

OPIC 2014-2020 has also been developed in line with the objectives of:

The Energy Strategy of the Republic Bulgaria until 2020, representing the

country's vision for the sector in accordance with the current European framework

and the global trends in energy technology. The key challenges are the high

energy intensity of production in Bulgaria, the high dependence on imported

energy resources and the need for environmentally sound development. OPIC is in

line with the strategy priorities for ensuring security of energy supply,

incompliance with the objectives to increase the production of renewable energy

and improving the energy efficiency.

The Strategy for e-Governance in Bulgaria for the period 2014-2020 and The

National Programme "Digital Bulgaria 2015", which recognizes ICT as a

driver of innovation andeconomic growth. The Programme sets the parameters for

the development of the information society (IS) and the digital technologies in

Bulgaria, leading to the implementation of the EU objectives defined in the

Digital Agenda for Europe (DAE).


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The EU Strategy for the Danube Region in Bulgaria, especially with respect to

entrepreneurship innovation activity, increasing the competitiveness and

efficiency of enterprises.

The Strategy for Sustainable Tourism Development on Bulgaria 2014-2030 which aims at promoting the competitiveness and the efficiency of the Bulgarian

tourism sector through the best usage of natural and antropogenic resources in line

with the market requirements and consumer expectation for sustainable tourism

development.

GENERAL NEEDS AND CHALLENGES IN THE IMPACT AREA OF

OPIC 2014-2020

As a small and open economy with a currency pegged to the euro, Bulgaria is heavily

dependent on foreign markets and foreign investment, as been demonstrated by the

effect of the global financial and economic crisis on the country‘s growth rate. A

characteristic of the Bulgarian economy is also that presently its competitive advantages

are formed on the basis of the low price of the underlying factors – labour, natural

resources and energy, rather than on the basis of special factors such as innovation,

productivity, skilled workforce, research and technological development (which are the

basis for long-term competitiveness). This determines the ambition of the OPIC 2014-

2020 for strengthening the long-term competitiveness of the Bulgarian enterprises in

clear compliance with the European industrial policy:

In the Eurostat projections for the period 2010-2060 the population of Bulgaria will

decrease by nearly 27% and the share of the population over 65 will reach over 32.6% 3F

3,

while that of children aged under 15 will shrink to 13%. According to the World Bank

estimates, from 2012 to 2050 Bulgaria will have the most rapidly shrinking working age

population in the world. The greatest concern is that the population between the ages of

15 and 24 is expected to fall by 41%, which will have a direct impact on the

performance and structure of the education sector and the labour market, and

respectively, on the overall economy.

In this sense, the risks associated with the economic growth in Bulgaria, can be

differentiated as external and internal. The economic activity in the EU, the trends in

energy development and the volume of FDI are key external aspects of the growth

forecast. Increasing the productivity, efficiency and innovation of Bulgarian enterprises

are fundamental internal factors that are able to mitigate to some extent the impact of

the deteriorating demographic processes. In a relatively stable external environment,

growth will depend on a combination of reforms in key sectors with investments under

OPIC 2014-2020, in support of export-oriented economy based on knowledge,

innovation and sectors with high added value.

Table 1-1: Macroeconomic projections4F

4

2013 2013 2014 2015 2016 2017

Indicator

Level

(mln. BGN)

Rate of

change

Rate of

change

Rate of

change

Rate of

change

Rate of

change

3 Eurostat, News Release, 80/2011 - 8 June 2011, Population projections 2010-2060 4 Convergence Programme of the Republic of Bulgaria –2014-2017, updated April 2014


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2013 2013 2014 2015 2016 2017

Indicator

Level

(mln. BGN)

Rate of

change

Rate of

change

Rate of

change

Rate of

change

Rate of

change

Real GDP (at 2012 prices) 78 762 0.9 2.1 2.6 3.4 3.4

Nominal GDP 78 115 0.0 3.3 4.4 5.2 5.2

Components of real GDP

Private consumption 50 209 -2.3 1.3 3.0 4.3 4.4

Government consumption 12 416 2.5 2.4 2.2 2.4 2.3

Gross fixed capital formation 16 648 -0.3 2.1 4.3 5.4 6.0

Change in inventories and net acquisition of assets (% of the

GDP)

309 0.4 0.4 0.5 0.5 0.5

Export of goods and services 56 701 8.9 6.9 5.9 6.1 6.2

Import of goods and services 57 521 5.7 6.3 6.6 7.1 7.4

Contributions to real GDP growth (p.p.)

Final domestic demand - -1.2 1.7 3.2 4.3 4.5

Change in inventories and net acquisition of assets

- 0.0 0.2 0.0 0.0 0.0

External balance of goods and

services - 2.0 0.3 -0.6 -0.9 -1.1

As specified in the Partnership Agreement 2014-2020, the objectives and priorities

identified in the relevant strategic documents and the results from the previous

programming period, OPIC 2014-2020 will address the following key needs and

challenges, which the Bulgarian economy is facing:

low degree of innovativeness of Bulgarian enterprises as a result of

insufficient cooperation between business, academia and universities, small in

volume and inefficient investment in R&D and innovation, and lack of adequate

infrastructure and environment for innovation

Bulgarian SMEs are at 108th

position among 148 countries in terms of business

sophistication and innovation5. Bulgaria is the last in the EU in innovation performance

and the last but one in the share of SMEs that have marketed new products or services

(17% compared to 39% for the EU). The low level of innovative activity leads to a

strong price competition from countries with lower production costs and a decline in the

market share of Bulgarian exports in a number of leading industries (light industry, food

processing, pharmaceuticals, iron and steel production, etc.). On the other hand, there is

a low degree of fruitful collaboration – development and introduction of innovative

products with a high added value for which there is also a market demand – between

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business (especially SMEs), educational institutions and R&D organisations, which is a

proven prerequisite for the achievement of economic development and sustainability.

difficult access to sources of funding and low investment activity - only

16.766 percent of the Bulgarian SMEs have access to public financial support

including guarantees

Micro, small and medium-sized enterprises have difficulties in ensuring funds for

investments in tangible and intangible assets and the so-called technology transfer, and

as a result of the crisis – even for working capital. Businesses use primarily personal

savings (62%) and bank loans to finance investments7. A huge potential for increase has

those businesses who use retained earnings and the ones that take advantage of the

financial capacity of the EU funds, incl. JEREMIE. In early 2012, access to finance is

very difficult for 69% of the enterprises. Securing funding for their activities depends

heavily on the stage of their development. Credit is available for enterprises with longer

financial history rather than younger ones – only 27% of the enterprises established

after 2010 have used bank loans.

Constrained investment in the economy leads to limiting the opportunities for economic

growth and creates barriers to the development of the innovation potential of enterprises

and achieving rapid growth. On the other hand, the use of obsolete and outdated

equipment seriously deteriorates the efficiency and effectiveness of production with

view of production inputs – raw materials, fuel, energy and labour costs per production

unit, and has negative effect the competitiveness of enterprises.

insufficient entrepreneurial activity and sectoral structure of the economy

considerably different from the EU countries

Traditionally, banks rarely provide resources for start-ups especially in the high- and

medium- technology sectors, sectors of the knowledge-intensive services and of R&D,

where long term assets are few and do not serve as collateral. Thus the necessity for

continued financial instruments in this area is urgently needed on the basis of the

experience with the JEREMIE. Nearly 6% of the SMEs (between 1200 and 1500 in

total) have an annual turnover growth over 20% and constantly seek opportunities to

finance the expansion of their business. They create between 35% and 40% of the added

value generated by SMEs. There is obviously a need for specially modelled financial

instruments to address these demands.

National Strategy for Small and Medium-sized Enterprises 2014-2020 - Small Business

Act shows the main disadvantage of the structure of Bulgarian companies – a sectoral

structure that is significantly different from the one in the EU, namely:

Bulgaria EU-6

High-tech production: 1% 2%

Low-tech production: 10% 8%

Knowledge-intensive services: 14% 23%

6 The National Strategy for Promotion of SMEs 2014-2020.

7 Study of the entrepreneurship and the prospects of innovation development in SMEs 2012 – 2013,

Bulgarian SMEs Promotion Agency, Sofia, 2013


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Bulgaria EU-6

Low knowledge-intensive services: 68% 51%

Other sectors: 7% 16%

The share of enterprises operating in the "Retail" sector is over 32% of the SMEs; for

comparison, this index in the EU-27 is 17% on average while for the EU-6 it is only

13%.

The following economic activities have the largest contribution to Bulgaria‘s GVA:

production and distribution of electricity, heat and gas (about 20%), food production

(about 10%), clothing (about 7%), manufacture of other non-metallic mineral products

(about 6%), fabricated metal products, except machinery and equipment (6%), mining

of metal ores (about 4%), manufacture of machinery and equipment for general and

special purposes (about 4 %). None of them falls within the classification of high-

technology sectors, which are the main driver of "knowledge-based economy".

low degree of internationalisation – as per data for 2012, only 3.84% of the

Bulgarian SMEs import from outside the EU, while only 1.76% export outside the

EU. 95% of the SMEs are characterised with a low degree of internationalisation

and the country ranks 27th

in the EU.

The limited technological capacity, guarantees for sustainable quality and low

innovation activity of SMEs are the factors for the poor export, which Bulgarian

enterprises realize at the European and international market. In terms of the summary

indicator of technological readiness8F

8 that explores the presence of the latest technology

(99th

), the level of absorption of technologies by companies (113th

), the levels of foreign

investment and technology transfer (107th

), Bulgaria ranks 44th

among 148 countries.

However, the sectors of mechanical engineering, metal products, computers, optics and

electronics, automotive industry, demonstrate growth in the volume and price of

exports, including labour productivity. Additionally, the production of food and

clothing, medical and pharmaceutical product contributes to it as well. In practice, these

are the sectors with potential for significant contribution to export growth, especially in

third markets.

Attracting foreign investments in targeted economic activities would contribute to better

performance of Bulgaria in the ranking and to this end a proactive investment marketing

for promotion of direct investments should be conducted. As a result the possibilities

and services for investors in Bulgaria provided by Bulgarian institutions will become

more popular.

poor export structure (based primarily on export of raw materials and goods

with relatively low added value)

The existing data on foreign trade of Bulgaria outline the export of raw materials with

the largest share: 43.3% of the total exports in 2012, followed by consumer goods -

23.3% and capital goods - 16.7 %. Compared to the same period of 2011, the share of

consumer goods and energy resources has increased while the share of raw materials

has been reduced (by 3.5% less). High-tech industries achieved 6.1% of the total exports

(in average 16% for the EU), which ranks third in exports per employee behind the

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export of petroleum products and base metals. Overall, Bulgaria‘s export consist of

products that are below the average world level of technological development.

high degree of resource- and especially energy intensity of production, low

degree of implementation of new technologies – the SME sector contributes

significantly to the formation of the profile of the Bulgarian economy as the

highest resource-and-energy-intensive economy per unit of output among the

economies of the EU.

Bulgaria ranks first in energy intensity in EU-27, i.e. the Bulgarian economy consumes

the greatest amount of energy needed to produce a unit of GDP, or by 77.34% more

than the average for the EU 27. Despite the long-term trend of improving the energy

efficiency of the Bulgarian economy, measured by the total energy efficiency index

ODEX, in 2011 Bulgaria ranks last in energy efficiency at EU- 27 level, which is one of

the factors limiting the productivity and competitiveness of enterprises in Bulgaria. The

high energy intensity of the industry is due to physically outdated and obsolete

technologies, limited access to new best practices, systems and models for energy and

efficiency production.

The period of the crisis 2008-2009 did not allow for capital investments of strategic

importance and led to a lasting trend of reducing expenditure, both public and private.

Consequently a particularly serious difficulty for the SMEs proves to be the provision of

free resources for investment in improving the energy and resource efficiency of their

operations. According to a case study9 F

9, the evaluation of the Bulgarian entrepreneurs in

terms of the state of technological equipment in their companies according to the EU

standards shows that only in 17% of them it is modern, and for 52% it is at an

acceptable level. Only 27% of the entrepreneurs say they have had the opportunity to

make investments for upgrading the technology in recent years.

The upgrading and improvement of technologies makes production processes more

resource-efficient and more environmentally-friendly, influences the increase of energy

efficiency and enhances business competitiveness by achieving lower production costs

and diminishing the dependence in supply of raw materials.

vulnerability to gas supply disruptions – the Republic of Bulgaria is practically

100% dependent on gas imports from Russia (transited through the territories of

Ukraine, Moldova and Romania) and does not have any alternative sources and

routes for natural gas supply.

Bulgaria was the most affected EU Member State during the gas crisis of January 2009,

when supplies of Russian gas through the territory of Ukraine were interrupted for two

weeks.

The development of adequate infrastructure facilities and gas interconnections with

neighbouring countires in particular would secure uninterruptible and diversified

supplies, as well as secure the necessary conditions for the physical operation of the

regional gas market in South East Europe.

Building sustainable and diversified energy systems, secure energy supplies, efficient

use of resources and innovative solutions are crucial to the long-term sustainable

growth, job creation and quality of life.

9 Study of the entrepreneurship and the prospects of innovation development in SMEs 2012 – 2013,

Bulgarian SMEs Promotion Agency, Sofia, 2013.


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SPECIFIC AREAS OF IMPACT OF OPIC 2014-2020

Innovation performance

As the Innovation Strategy for Smart Specialisation (RIS3) has identified, Bulgaria is in

the group of ―modest innovators‖ whose performance is more than 50% below the

average for the EU-27 10F

10, and ranks last in innovation performance among EU-27.

Innovation creates sustainable competitive advantages and as a result of promoting

innovation, the Bulgarian economy will be able to move up higher in the value chain. In

this regard OPIC 2014-2020 is aimed at special impact in terms of Bulgarian innovation

performance in the following indicators: number of local providers1F

11, (local business

entities engaged in the process of creating innovation), contribution to the value chain2F

12,

collaboration between business and academia in the field of R&D3F

13, capacity for

innovationF

14, nature of competitive advantages

15F

15.

Fig. 1. Innovative characteristics of SMEs

The innovative characteristics of Bulgarian SMEs compared with those of EU-27 show

most significant distance from the EU-average in indicator ―collaboration‖. The main

recommendation16

of the Council of EU about innovations and competitiveness

concerns namely partnerships between universities, research centres and industry.

Promoting the exchange of ideas, technology transfer and commercialisation of research

results are crucial for the ability of the Bulgarian research system to generate significant

10 According to Innovation Union Scoreboard 2013 11 From 61 place in 2008-2009 to 108 place in 2013-2014 according to the Global Competitiveness report. 12 From 86 place in 2008-2009 to 116 place in 2013-2014 according to the Global Competitiveness report. 13 From 92 place in 2008-2009 to 117 place in 2013-2014 according to the Global Competitiveness report. 14 From 80 place in 2008-2009 to 103 place in 2013-2014 according to the Global Competitiveness report. 15 From 100 place in 2008-2009 to 113 place in 2013-2014 according to the Global Competitiveness report. 16

Recommendation of the Council on the NRP 2013 and the opinion on the Convergence Programme of Bulgaria

2013-2016 from 9th July 2013


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economic impact. Bulgarian economy has not yet reached the stage of transition from

efficient economy to a higher level of development (―knowledge-based economy‖)17F

17,

which puts it into the position of ―catch-up‖ state. OPIC 2014-2020 will seek

opportunities to accelerate the transition towards a knowledge-based economy by

promoting the high-tech sector and knowledge-intensive services –promotion of

investment in the thematic areas of intense innovation development and innovative

horizontal policies in full compliance with RIS3.

In order to get closer to the EU average, Bulgaria has to make further efforts on

coordinated support, aimed at increasing the efficiency and ―knowledge-based

economy‖ indicators (high level of development). The innovation is seen as an integral

element of the competitiveness. According to an evaluation report for Bulgaria,

commissioned by the EC, most of the Bulgarian companies work under the technology

threshold, and ―their growth is based on improvements in productivity that are neither

related to R&D and dissemination of knowledge, nor generation of knowledge‖ 18F

18. Even

the FDI attracted so far in the economy have a limited contribution to technology

transfer. To improve competitiveness, Bulgaria should emphasize both on the quality of

the workforce and on capacity building to adopt and adapt the European and

international knowledge and technology. This requires that the innovation policy should

be oriented toward specific areas and should combine promotion of R&D-based

innovation activities with those which are not directly related to R&D (such as ICT).

The most serious reason for Bulgaria‘s lagging behind in innovation is the share of the

total amount of investments in R&D and innovations in comparison with the world's

leading economies and those of the other EU Member States.

Fig. 2. Business expenditures on R&D by economic activity (% of total business

expenditure on R&D)

Source, NSI, Bulgaria, http://www.nsi.bg

In the private sector, the majority of enterprises, especially micro and small enterprises,

do not have their own technologies and capabilities to develop innovations which are of

significant importance for specific branch or group of branches. SMEs face number of

17 http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013-14.pdf 18 Radoshevich, S., Strogilopulus, 2012. Strategies for smart specialization in the field of research and innovation.

Assessment of Bulgaria. European Commission, 2012

Tho

usa

nd

Le

vs

Agriculture, forestry and fishing (% of

total BERD)

Manufacturing (% of total BERD)

Wholesale and retail trade; repair of

motor vehicles and motorcycles (% of

total BERD)

Information and communication (% of

total BERD)

Human health and social work activities

(% of total BERD)

Total BERD, Thousand Lev

http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013-14.pdf


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difficulties associated with the lack of qualified staff for innovation, access to applied

research results and funding for such studies.

In this regard, OPIC 2014-2020 will contribute to increase the investment (public and

private) in R&D and innovation, particularly in the sectors of manufacturing and

services, and with the aim to achieve the national goal of 1.5% share of GDP of R&D

costs. Opportunities will be sought to promote business to business partnerships and

business and academic cooperation, including internationally, to increase the level of

generated and transferred ideas, to achieve better exchange of specialists and extended

investment activity.

Table 1-2: Barriers for innovation development in selected sectors

Sector Specific to the sector barriers for innovation

development

Interrelated

obstacles to

innovation

ICT Inadequate system for protecting ICT‘s assets,

such as innovative services and business process

innovation

Shortage of skilled

labor

Lack of

cooperation

between

businesses,

universities and

research units

Energy

inefficiency

Mechatronics Large number of small players at the base line of

the value chain

Medicine and

pharmacy

Undeveloped system and inappropriate

infrastructure for research at initial stage and

tests.

Knowledge

intensive

services

Inappropriate system for protecting IP assets,

such as innovative services and business process

innovation

Shortage of entrepreneurial skills

Low level of information for funding

opportunities and limited skills and capacity to

access such opportunities

Low level of cooperation between researchers

and business.

Ineffective

implementation of

IPR

Limited access to

funding

OPIC 2014-2020 aims also at overcoming main barriers to innovations in selected areas

(Table 1-2) in accordance with to RIS 3 goals..

The Innovation Strategy for Smart Specialisation addresses the need for synchronisation

of efforts in the field of economic development, research and innovation, and

strengthening the link between science and business. The draft version of RIS3 provides

for vertical thematic areas (mechatronics and clean technologies, ICT and informatics,

industry for healthy life and biotechnologies, new technologies in creative and

recreative industries) and horizontal policies (ICT and resource efficiency), as well as

technological niches, identified through continuous process of entrepreneurial

discovery. In this context, the investments under Thematic objective 1 of OPIC support

activities exclusively within the thematic areas and horizontal policies of RIS3.


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In accordance with RIS3 draft version, the innovation policy of the Republic of Bulgaria

in the period 2014 - 2020 will be focused on:

• Innovation potential in the identified thematic areas (for creation and

development of new technologies, leading to competitive advantages and increase of

domestic products and services added value of) and

• Supporting innovations for resource efficiency and ICT applications in

enterprises throughout the industry (for accelerated absorption of technologies)

so that until 2020 Bulgaria passes from the group of "modest innovators" to the

group of "moderate innovators". This will be done by:

• Regular analysis to identify market advantages of the country and to create high

quality scientific potential, which serves the national economy and contributes to

ensuring high quality life for citizens;

• Strengthening the innovation potential and restructuring the economy towards

sectors with potential to be integrated into the EU economy with a maximum benefit

both for the country and for the EU as a whole, sectors with export potential outside the

EU;

• Encouraging private investment in research and innovation;

• Encouraging development and use of resource efficient, environmentally

friendly and wasteless technologies that reduce pollution at the source, allowing for

recycling, while reducing carbon emissions;

• Development of financial instruments tailored to company size and expanding

access to finance for micro, small and medium-sized enterprises and innovative large

companies;

• Development and safeguarding of human potential and talent;

• Development of research and innovation infrastructure (including e-

infrastructure);

• Promoting internationalization of enterprises to enter the international market.

The RIS3 approach is combined: it will support activities to establish and develop

strong links between research and business; creating, attracting and retaining quality

human resource; well functioning infrastructure which favours innovations. The focus

will be entirely on promoting development of the thematic areas by supporting specific

activities addressing the specific challenges of each thematic area identified in the

process of in-depth analysis and a wide range of discussions. Horizontally innovations

for resource efficiency and IT applications in enterprises throughout the industry will be

supported.

One of the conditions for stimulating innovation activity of enterprises according to

RIS3 is the development of integral scientific-research and innovation ecosystem. The

key element of building a favourable environment for innovation is the mutual

coordination and complementarity between the interventions covered by ESIF, national

funds and other EU funds which is explained in details in the respective part of the OP.

Effective and sustainable management of innovation processes and continuous

discovery of entrepreneurial potential is guaranteed by commitment at highest level and

institutionalized coordination and partnership with all stakeholders (government, local


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authorities, industry, science and NGOs). RIS3 governance is structured at several

levels, described in details in Annex 4.

The priorities will be set up by a Council for Smart Growth. It will carry out vertical

coordination with the ministries, which form a peer network at central level. Two

Councils will play a consultative role in the interaction between the peer network at

central level and the peer network at regional level - The National Innovation Council

(NIC) and The National Research and Innovation Council (NRIC). The peer network at

regional level encompasses representatives from all regional administrations in the

country.

Administrative capacity on each of the vertical thematic areas will be developed in the

units of the peer network at central level, through which the activities and initiatives,

related to RIS3 implementation will be promptly and effectively coordinated.

Knowledge on the financial instruments for RIS3 implementation will be spread out and

support will be given to effective interaction with stakeholders.

On the level of the regional peer network and on the level of NIC and NRIC feedback

from stakeholders in the vertical thematic areas, defined in RIS3, will be received and

analyzed on regular basis. That feedback will serve to measure the progress in the

implementation of measures, to analyze current tendencies and to identify innovation

potential and ideas. This information will be used in the process of activities prioritizing

and elaborating new measures to support innovations.

The enterprises face many difficulties to develop their potential and to become

innovators because of limitations on intellectual property protection. The Bulgarian

legislation in this field is in compliance with EU directives, but does not stimulate

sufficiently local innovation activity. Although these measures have reduced the

irregular acquisition of intellectual property, their implementation remains unequal, and

the perception of the private sector is mostly limited to patents, obtained in international

partnerships. That is why OPIC strategy includes also support for stimulation of policy

developments in the area of intellectual property.

Entrepreneurship

The backbone of the economy are the micro, small and medium enterprises (SMEs) and

despite the low performance during the economic and financial crisis, SMEs remain the

main driving force of economic growth in Bulgaria, contributing to 75% of the

employment (68% in the EU) and 62% of the value added (58% in the EU) 21F

19. In 2012

92% of SMEs are micro, 6.6% - small and 1.2% - medium enterprises.

Although the proportion of SMEs types corresponds to that of the EU-28 in terms of

value added, Bulgarian micro-enterprises are significantly behind the EU-28. The

highest value-added have businesses in the ―Manufacturing‖ industry, followed by the

―Transport, repair of motor vehicles and motorcycles‖ industry and the ―Creating and

disseminating information and creative products; telecommunication‖.

19

National Strategy for Promotion of SMEs 2014-2020.


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Table 1-3: Enterprises by size, number of employees and value added

Source: NSI, Eurostat, 2012

Table 1-4: Enterprises by size, sectors, number of employees and value added by

sectors

Source, NSI, 2011.

The sectoral structure of the Bulgarian economy differs significantly from that of the

other EU countries. The share of SMEs in high-tech industries, knowledge intensive

services and R&D is significantly low and therefore the stimulation of entrepreneurship

and start-ups in these sectors is really important.

Entrepreneurship is a key factor for the development of local economies. In principal,

the more enterprises created on a certain territory, the more the chances for higher

incomes and prosperity of local economy. The viability of the local economy is ensured

by the existence of sufficient number of SMEs. The high number of SMEs ensures

wider diversification as well as resistance of the local economy to dynamic changes.

The largest numbers of enterprises per 1000 inhabitants in Bulgaria are in the regions of

Sofia (capital), Varna, Burgas, Blagoevgrad, Plovdiv, and the most threatened is the

local economic sustainability in the regions of Kardzhali, Targovishte, Montana, Vratsa,

Vidin and Silistra.22F

20

In general the entrepreneurship in Bulgaria is dominated by micro enterprises with less

than 10 employees. Stimulating the entrepreneurial activity is related to a number of

factors. Despite that according to the ―doing business‖ indicator Bulgaria takes sixth

20

Regional Profiles: indicators of development, Institute for Market Economics, Sofia, 2013


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place among the EU-27, the conditions associated with the funding and provision of risk

for the entrepreneurs remain as a barrier to those who want to start their own business

and choose entrepreneurship as an opportunity.

SMEs, particularly micro and small enterprises face difficulties in access to finance as

the major omissions are related to meeting the financial needs of micro-enterprises.

Microfinance is one of the most popular instruments for smaller companies, start-ups

and entrepreneurs who are experiencing problems accessing the banking system, which

is the main source of corporate finance in the country. Consequently, the main sources

of financing of micro-enterprises are mainly "funds from the owner", followed by

"government grants" and "short-term loans, bank overdrafts and credit lines". It should

be noted that access to basic banking products is limited to micro-enterprises that have

higher turnover and appropriate assets to ensure the collateral. Providers of

microfinance institutions in Bulgaria are not currently able to meet the growing demand

for micro-enterprises, and their presence has gradually decreased, while borrowing costs

remain high for many potential customers. There is therefore a need to promote the

development of microfinance institutions.

Although usually lower, the demand for equity capital in Bulgaria exists among all

categories of SMEs, especially among small and medium enterprises, as observed is the

need in the segment between 1 and 5 million Euro for investment. However, the supply

of equity capital in the country is almost non-existent in the last few years, especially

for small investments up to 5 million Euro, mainly due to the structural limitations of

the financial sector and unstable business environment in the country. In the near future,

only supported by JEREMIE initiatives can be considered as potential sources of equity

capital. Shortage21

of risk capital is estimated to € 30.6 million / year, lack of equity for

companies in a more mature stage of development - € 88 million / year.

Ex-ante analysis of financial instruments concluded that SMEs in the country need

primarily easier access already provided into existing measures and public services,

while they also need methodological, technical assistance in providing the needed

externally leverage finance.

The opportunities for funding in the field of entrepreneurship through financial

instuments provided by OPIC 2014-2020 will stimulate the creation of new enterprises,

the successful implementation of new business ideas, and the successful and accelerated

development of existing entrepreneurs, leading to economic stabilisation and growth,

respectively to the creation of new jobs, partially offset by identified in the ex-ante

evaluation of the implementation of financial instruments financing gap for SMEs.

Innovative entrepreneurship requires strong expertise, specialised platforms and access

to funding mostly through financial instruments. There are serious opportunities for

improvement and extension of current funding instruments for entrepreneurship and

innovation, OPIC 2014-2020 will focus on the implementation of those ones which are

working properly and will address the market needs of developing entrepreneurs to

implement innovations and to support commercialisation of R&D with proven market

demand. With regards to the instruments for support entrepreneurship, Bulgaria has the

chance to prove itself as a regional leader.

Bulgaria supports the overall European policy for SMEs development in new areas

related to European and regional challenges as creative and cultural industries, products

21

Preliminary analysis of ex-ante evaluation of the financial instruments


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and services aiming to overcome the demographic problems, aging of population, social

entrepreneurship, etc. With this specific range of potential beneficiaries of ERDF funds,

grant funding is a way to encourage participation with quality projects that make a

significant contribution to the implementation of the national and European policies.

According to the ISSS, among the sectors of creative industries most dynamically are

developing information technology and film production, television production and

recording and at a rate higher than the EU average in terms of the number of enterprises,

value added and employment. These sectors are two of the four ones in Bulgaria, that in

the years of the financial and economic crisis have a continuous growth by the

indicators below.

The total share of value added, just for these two sectors, and if the same pace of growth

is retained, is expected to reach in 2020 4% of the added value generated by all

enterprises and overall of creative industries – about 8-9 %. Sectoral links, according to

NSI data, show that these two sectors consume products especially in production of

computer and communication equipment, electronic optical products, which means that

their growth will inevitably affect the growth to one of the high-tech industrial sectors in

the country.

Capacity for Growth

The traditional manufacturing in Bulgaria is facing a strong price competition, from

third parties as well as competition in terms of quality from other EU countries. Despite

that, the manufacturing sectors with potential for growth and export are developed in

Bulgaria, as well as such in specific areas 23F

22, related to the European and regional

challenges.

On the other hand enterprises have limited resources and lower ability to take risks and

considerable volumes of exports on intensively competitive markets. Factors are also:

differences in the applicable law in the specific areas of economic activity; limited

information about potential partners and about the characteristics of the external

demand, despite the numerous traditional connections of the Bulgarian economy with

other country markets.

22 Creative and cultural industries, activities related to the aging population, in accordance with paragraph (8) of the

preamble to Regulation 1301/2013


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In line with the ―The European Competitiveness Report 2013: toward knowledge-driven

re-industrialisation‖ the restructuring of the Bulgarian economy should be based not

only on the sectors of retail trade and production of raw materials but mainly on

consumer and investment goods and services with a focus on high-tech sectors of

industry and sectors of knowledge intensive services which will be supported by OPIC

2014-2020.

In other words the export determines the competitiveness and the growth potential of

SMEs, especially for a country like Bulgaria, which is characterised by an open

economy and a limited domestic market. The main trade partners of the country are

among the EU-27 (60%). Assuming that European orientation means the realisation of

at least 50% of the total exports of goods of the particular economic activity on the EU-

27 market, the results show that the majority of economic activities meet this criterion.

The Bulgarian trade relations with countries like China, USA, Russia and CIS countries,

and other countries with large market potential, became more active. Significantly high

degree of European orientation is observed in the medium-high technology industries

(electrical equipment, motor vehicles, trailers and semi-trailers; vehicles, but not cars)

and low-tech industries (leather, clothing, furniture), where the share exceeds 75%.

Exception to the general trend is reported in medicinal substances and products (from

the group of high-tech industries), chemical products (medium-high technology

industries), coke and refined petroleum products (medium-low technology industries),

timber and tobacco products (low-tech industries), all of which have found effective

market presence in third countries.

Fig. 3. Structure of the Bulgarian export by groups of goods for 2011

Source: Ministry of Economy and Energy, NSI, 2012

The distribution of economic activities by groups, depending on the extent of their

global technological intensity, offers a different perspective on the structure of the

Bulgarian export, but as to the profile of goods export, mainly the activities are of low

level of processing final products. This statement is supported by significantly higher

share in the total export of medium-low-tech activities (36.0%) and low-tech activities

(21.4%) compared with the high-tech (6.0%) and medium-high technology activities

(19.4%). In this respect, OPIC 2014-2020 will support economic activities with high


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and medium-high-tech level of development which have the greatest potential for

increasing export, improvement of export advantages of the Bulgarian enterprises on the

international market and more active involvement of the Bulgarian SMEs in value chain

on the international markets. A change in the export structure requires restructuring and

technology modernisation of production, strengthening the application of innovative

knowledge and skills and highly qualified labour, which will position the Bulgarian

products in market niches of higher price range and will help to create long-term

competitive advantages, and will indirectly contribute to attracting foreign direct

investment. Complementary support will be also provided to institutions and

organizations providing direct services for enterprises, especially to export oriented

ones, for attracting investments and for international marketing of Bulgaria as tourist

and investment destination.

OPIC 2014-2020 also supports the capacity of enterprises for easier access, sustainable

development and presence on markets, and effective use of the benefits of growing

markets. Measures which will be implemented in this area will be directed towards

overcoming the limitations which the Bulgarian enterprises face in terms of

competitiveness on the regional, the European and the international markets. The

limitations come from high production costs and the need for optimization of production

chains; the use of obsolete production technologies; lack of sufficient production

capacity which can meet the volumes of market demand; lower quality of products in

some sectors; insufficient information on the attitudes, expectations, and needs of the

consumers; lack of objective guarantee of the quality and use of good manufacturing

practices. As a result, enterprises face higher trade barriers to enter new markets or to

maintain the achieved market positions.

The support for development of the production capacity will contribute to the

stimulation of broader enterprises participation in the value chain and the formation of

competitive advantages based on specific products and processes. Complementary

institutional support will help enterprises to prepare their presence on the regional,

European and international markets, to attract foreign investments and successfully

cooperate with foreign partners.

Institutional support will be provided also for the tourism sector. Although the tourism

is leading and fast growing sector in Bulgaria, with a significant contribution to the

Bulgarian economy, considerable private investments in the last decade and a strong

potential for further growth and positive impact on the regional development and

employment, the tourism enterprises and business associations, lack sufficient capacity

to offer their products independently and to promote themselves at the international

market. One of the main mechanisms to support SMEs in the tourism sector is through

support for establishment and functioning of the touristic regions management

organizations provided in the Tourism Act.

For Bulgarian SMEs ICT are very useful for improvement of integration, expansion of

the range of their capacities and creating competitive advantages. SMEs are growing

twice and three times faster when using ICT, therefore specific actions to promote their

use will be supported.

Approaches towards increasing value added ―on the spot‖, reuse of raw materials (and

utilization of waste and waste products) will be supported. In this context, the flagship

initiative ―Resource-efficient Europe‖ is to be leading, taking into account the current

stage of Bulgarian technology development.


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The potential of clustering for the implementation of technology transfer, innovations,

sharing of resources and expanding of markets, including through economies of scale

remains unused, which makes it a powerful instrument for enhancing the

competitiveness of the Bulgarian economy. According to the RIS3 association of

enterprises in clusters allows the implementation of new production solutions and

development of innovative potential, which leads to increased productivity, higher

value-added production, access to markets and hence – to enhance the competitiveness

of businesses and expand their capacity for export.

Among the main challenges that clusters face are:

- been created in response to opened calls for proposals under various programs

(PHARE, OP, etc.) they are less focused on solving the specific common

problems of the companies involved,

- lack of specified goals to be achieved in their collaboration,

- weak connections between clusters and science.

- inadequate promotion of Bulgarian clusters abroad,

- insufficient commitment to the regional economical development

- insufficient trainings, awareness and motivation of companies for the benefit of

sustainable existence of clusters.

As a result, the existing clusters are less flexible and adaptable to the rapidly changing

environment. 2

But there are, however, good examples of real existing clusters in the

country in the field of new technologies, textile and furniture industry, marine industry

and renewable energy, etc.

The largest concentration of clusters, which is determined by the presence of the

traditional production, is in the regions of Sofia, Ruse, Varna, Stara Zagora and Sliven,

(such as the clothing industry in Ruse and Sliven, IT / electronics in Sofia and Stara

Zagora) and is also result of proximity to major universities (Sofia, Varna, etc.).

In accordance with the horizontal policies and thematic areas of RIS3, OPIC 2014-2020

will support clusters (according to their needs in line with the stage of development:

newly-created, developing and developed) in order to increase the degree of integration

of local suppliers for maximum use of their capacity to develop competitive innovative

business products and services, and active presence in the regional, national and

international markets. For example, the newly created clusters will be supported

primarily for "soft measures" aimed at strengthening their organizational and

administrative capacity, stimulating cooperation and creating partnerships throughout

the value chain, incl. adoption of good European practices. For developing and

developed clusters support will be directed towards development of shared

infrastructure and innovation know-how, internationalization and participation in

European and international forms of cooperation in order to make the clusters the

driving force for regional smart specialization in Bulgaria.

Energy Efficiency

The achievement of competitiveness of the economy directly depends on the

management and use of the natural resources and energy production and consumption.

Improving energy efficiency contributes to the implementation of all EU policies‘


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objectives: improved competitiveness; flexibility of supply; sustainability; and shift

towards a low carbon economy26F

23.

There is a close correlation between the development of energy sector and all the other

economic sectors, which determines the important role which the Bulgarian energy

sector plays for the economic development of the country. ―The Bulgarian energy sector

faces challenges like significant dependence on imported resources and energy, rising

energy prices and the climate change. Bulgaria is one of the poorest, most energy

intensive and most dependent on imported energy resources, countries in Europe.‖27F

24

Primary energy production satisfies just above 60% of the gross domestic energy

consumption in the country without significant structural changes: 42% coal; 20.85%

nuclear energy; 19.8% oil and oil products; 13.64% natural gas; 8.46% of energy from

renewable sources. For the period 2000-2011, there was an increase in final energy

consumption (FEC) in absolute terms – from 8436 ktoe in 2000 to 9050 ktoe in 2011.

Fig. 4. Final energy consumption (FEC) in Bulgaria during the period 2000-2011

by economic sectors

Source: „Report on the implementation of the Second National Action Plan for Energy

Efficiency in 2012.“, MEE (April 2013)

The changes in energy consumption and energy intensity of the industrial sector are key

factors affecting the changes in the overall FEC. The share of the "Industry" sector

declined in 2011, compared to 2000, taking up about 30% in the FEC structure.

Energy intensity is the main efficiency indicator in energy use and has a considerable

impact on the competitiveness of the Bulgarian economy. Bulgaria ranks first in energy

intensity compared to the EU 27. The Bulgarian economy has the highest consumption

of energy per unit product of gross domestic product, or with 77.34% more than the

average level within EU 27. The low energy efficiency of the industry is due to the

23 COM/2014/015 ―A policy framework for climate and energy in the period from 2020 to 2030" 24 National Development Programme: Bulgaria 2020―, p. 240


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outdated technologies and the limited access to new good practices, systems and models

for energy and efficient production. The need for replacement of large production

facilities and systems is indispensable, but it lags behind because of the insufficient

financial resources, and the relatively slow return of investment in such, thus the price

of electricity in the country is still one of the lowest. Nevertheless, there was a trend

towards reducing the energy intensity of the Bulgarian economy for the period 2000-

2011 – an annual average of around 5%. The measures that are part of the energy policy

of the country have a positive role in the ongoing energy efficiency policy, but a

significant impact has also the structural changes in the Bulgarian economy. In 2011

annual growth of 5.4% is reported in primary energy intensity (PEI) and 2.5% in the

final energy intensity (FEI).

Fig. 5. Primary and final energy intensity 2000-2011

Source: „Report on the implementation of the Second National Action Plan for Energy

Efficiency in 2012.“, MEE (April 2013)

FEI of industry decreased twice for the entire period from 2000 to 2011, but in 2010

there is an increase of 10.7% compared to the previous year – 2009. In 2011 the energy

intensity of the sector remains unchanged, which shows no improvement.

Due to the expected economic revival of the industry after the economic crisis, only by

increasing the energy efficiency the growth of energy intensity in the sector could be

limited. The main factor for this increase is the impact of the economic crisis, and the

impact of the accompanying structural changes (about 20%, as a result of the share of

the added value of industry in GDP). The largest effect for the increase in energy

intensity in the sector has the manufacturing industry in which the energy intensity has

increased by 4.2% compared to 2009, while decreasing by 5.5% per year in 2000-2009.

That is the reason why OPIC 2014-2020 will concentrate resources on TO 4 in order to

support the reduction of energy intensity as a priority in manufacturing industry,

respectively – for increase of energy efficiency in industry and commercial buildings.


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For the period 2005-2012 there is a tendency of increasing the share of energy from

RES in the structure of gross final energy consumption by up to 16.3% in 201225

, which

is above the EU – 28 average – 14,1%26

. By this in practice the national objective of

16% share of energy from RES in the gross energy end consumption by 2020 is

achieved.

Although the renewable energy production contributes to the reduction of emission of

greenhouse gases and allows for diversification of energy sources, for which Bulgaria

still has more to achieve, there are some problems related to the high growth of the

electricity production from renewable sources and the low consumption in the country,

resulting in the need to balance the production and consumption of electrical energy in

the system,take actions for its balancing and additional costs for its management. Also

the introduction of measures to promote energy from renewable sources, such as

preferential prices, accompanied by an obligation to purchase the entire quantity of

electricity produced from renewable sources has a high social cost as it resulted in

increase of the price of electricity for consumers.

Given that at present Bulgaria has exceeded the national target for increasing the share

of renewable energy, and in terms of implementing the national target for energy

efficiency improvement the country lags significantly, the resources of OPIC 2014-2020

focus on support to increase energy efficiency, while the measures related to the use of

renewable energywill be supported in addition to the energy efficiency measures and

will be only for own needs of the enterprises

While simultaneously improving energy efficiency and management mechanisms on

built RES, the national target can be maintained more cheaply and still be significantly

exceeded. Over achieving the target will allow the country to sell "surplus" till 2020,

through the adoption of mechanisms for transfer of certificates of other EU countries.

Energy intensity is directly dependent on the energy efficiency, the fuel mix and the

structure of the economy as the strategy of OPIC 2014-2020 is to address each of these

elements commonly, by supporting interventions in Thematic Objective 4. According to

the Partnership Agreement 2014-2020, promoting energy and resource efficiency is

mandatory in Bulgaria for increasing the competitiveness of the Bulgarian economy. In

this regard and in order to achieve the objectives of the Europe 2020, the PA plans to

invest in "reducing energy inefficiency and energy intensity of production, in limiting

energy dependence and increasing the share of energy for internal consumption from

renewable sources in enterprises".

Bulgaria's Energy Strategy 2020 is the first national strategic document which sets

specific quantitative targets that must be achieved by 2020. The most important of them

is the 50% reduction in the energy intensity of GDP, thereby it‘s expected to achieve the

most rapid and cost-effective path to the security of supply and competitive industry.

Gasification, according to this document, is an essential tool for the ecologization of

energy consumption with the recommendation for gasification and replacement of the

consumption of electricity, fuel oil and coal with natural gas consumption.

Greenhouse gas emissions from all energy activities in the energy sector, industry,

transport, agriculture and households, present 70% of total greenhouse gas emissions in

the country. Approximately 40% of greenhouse gas emissions in Bulgaria are product of

25 Eurostat 26 Eurostat


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the energy sector. For the period 2000-2010 there is a tendency to reduce greenhouse

gas emissions on the stage of PEC and FEC. The significant contribution of the industry

and transport in the total greenhouse gas emissions (91% of CO2 emissions in the

country, while the share of households is only 5%27

)

) determines the importance of

measures which aim to reduce emissions of hazardous gases from these sectors, as

OPIC will therefore contribute indirectly - through the support of activities leading to

energy savings as a result of which will reduce emissions of hazardous gases

Resource efficiency

The industry costs on protection and restoration of the environment in Bulgaria, are

significantly above the average among the other member-states and in recent years these

costs are increasing on annual basis by an average of about 15%. The manufacturing

industry has the highest expenditures.

Fig. 6. Protecting and restoring environment costs by sectors (as % of GDP)

The highest costs for environmental protection and recuperation of industry are those

for air and waste, and the lowest are for biodiversity, noise and vibration. At the same

time in line with the indicator – environmentally friendly business, the Bulgarian SMEs

are substantially behind the EU average.

27 Policies and measures of energy efficiency in Bulgaria, SEDA


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Fig. 7. Distance from the average values for EU28

Source: 2013 SBA Fact sheet Bulgaria

Despite the high environmental protection expenditures, the key reason for such poor

performance is that Bulgaria ranks last in the EU indicator for resource productivity,

which threatens the sustainability of the economy.

In relation to the following criteria: innovation for the environment, share of SMEs with

measures of resource efficiency, share of SMEs offering ―green products‖' share of

SMEs received public support for the introduction of measures to resource efficiency or

"green products "and share of SMEs satisfied with public support, Bulgaria ranks

among the last in the EU29

. The main reasons for this are rooted in:

The low cost of resources and as a result - higher share of exports of raw

materials;

Insufficient awareness and promotion of the possible mechanisms to achieve

resource efficiency and poor exchange of information between the partners in

the value chain;

The low level of renewal of the technological park of processing plants due to

lack of financial resources and incentives;

Lack of industrial symbiosis;

Strong administrative burden of the various ordinations and permits relating to

the protection of the environment through which are assessed and authorized

new investment proposals of the enterprises related to achieving resource

efficiency;

28 Source 2013 SBA Fact sheet Bulgaria 29

Source NSPSMEs


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Fig. 8. Resource productivity 30

Source: Eurostat, 2014

In this regard as additional contribution to the investment of OPT, OPRD and OPE,

OPIC 2014-2020 aims to support SMEs to improve their resource efficiency as a

horizontal priority and to stimulate pilot and demonstration initiatives aimed at

promoting industrial symbiosis and exchange of information between the partners in the

value chain (through separate investment priority), thus contributing to the turnaround

of the national target set in NSPSMEs to increase the share of SMEs with measures to

effectively use our resources31

.

Security of gas supplies

On 28 May 2014 the European Commission adopted its European Energy Security

Strategy providing a comprehensive plan to strengthen Europe‘s security of energy

supply. As a part of the immediate measures to increase EU‘s resilience to a major gas

disruption, the European Council endorsed on 27 July 2014 the Commission‘s proposal

to launch the so-called stress test exercise with the purpose of assessing the resilience of

the European gas system to cope with a severe disruption of gas supply to the EU. Three

focus groups were set up to specifically cover the regions where the impact of

disruptions was likely to be most prominent, one of these groups being for South East

region of the EU, including Bulgaria.

One of the proposed medium term measures (by end 2015) in the Communication from

the Commission to the European Parliament and the Council on the short-term

resilience of the European gas system is to speed up the implementation of key Projects

of Common Interest or Projects of Energy Community Interest, which include

interconnections of Bulgaria with neighboring countries. The Commission will follow

up such projects and also stand ready to facilitate any outstanding negotiations between

parties with a view to push forward all these projects towards an expedited completion.

30 Eurostat, 2014

31

The goal is the share of SMEs with effective use of resources in 2020 to exceed 93%, at the time, the base value is 85%.


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Projects contribute to ensuring natural gas supply from alternative sources to Bulgaria

(currently totally dependent on Russia), energy security and further balance of the

regional energy mix by increasing natural gas consumption, creation of jobs and support

to economic recovery in the post-recession period; provision of a direct connection of

the gas markets of the four Member States - Bulgaria, Romania, Greece and Hungary to

the gas markets of the other South-East European ones.

In order to ensure uninterruptible gas supply at affordable prices to businesses, OPIC

2014-2020 will support Phase 2 of the project for construction of Bulgaria-Serbia gas

interconnection. Moreover, forecasts show that by 2030 industry will be responsible for

43% of the total consumption of natural gas and electricity production – for about 35%.

At present, the share of natural gas in gross domestic energy consumption (GDEC) of

the country is approximately 70% lower compared to the EU-27 and this proportion has

not changed over the last decade. This makes the project for gas interconnection crucial

for the development of the Bulgarian economy.With the flexibility and the decrease of

the energy dependence which contribute to the reduction of the energy intensity of the

enterprises, Phase 2 of the project will provide new opportunities for the development

and recovery of the economy in the areas along the route, introduction of new energy

technologies, etc. The availability of secure access to natural gas will contribute to the

economic growth and the enterprises that switching from electricity and oil products to

natural gas will realize substantial savings and reduce hazardous emissions.

LESSONS LEARNED 2007-2013

Lessons learned 2007–2013 with regard to the effects and assessing the impact

During the first programming period for Bulgaria under the OP Competitiveness (OP

DCBE) 2007-2013 the amount of 1,162,216 thousand euros has been allocated, out of

which 987 883 thousand (85% of the funds) financed by the EU under ERDF and 174

332 thousand (15% of funds) by national co-financing. Fig. 9 presents areas for support

under OPDCBE 2007-2013 and the amount of the grants provided to the OP‘s

beneficiaries (as of 03/31/2014) (million EUR).


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Fig. 9. Areas of support under Operational Programme “Development of the

Competitiveness of the Bulgarian Economy” 2007- 2013

Except allocated resources for the financial instruments (30%), the largest is the

percentage of the funds for technology modernisation and management systems (26% of

total allocation), followed by the innovation and R&D support (24%) and energy

efficiency and green economy (15%).

Considering the fact that still the overall impact of EU funds on the Bulgarian economy

cannot be entirely measured, it can be concluded that by September 2012 there is a

positive effect of OP implementation on five of the main macroeconomic indicators

(GDP, employment rate, growth in private consumption and exports of goods and

services), as the most positive impact is on the growth of private investment (Fig. 10)

Fig. 10. Effects from the OPDCBE 2007- 2013”, SIBILA database


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Evaluating the impact of the Structural and Cohesion Funds on the Bulgarian economy

based on econometric model, SIBILA (in regard to OPDCBE)

The main conclusion is that the effect of the financing under operational programmes

cannot be measured by the amount of available funds and/or financing ―per piece‖, but

by the initial stimulation of projects which the private sector undertakes, develops

further and benefits multiply.

Lessons learned 2007-2013 in terms of administrative capacity and administrative

burden

In the beginning of the programming period 2007-2013, the applicants and beneficiaries

faced a high degree of red type and complicated administrative procedures. The

Bulgarian lack of experience in the implementation of the Structural and Cohesion

Funds should be also considered.

The changing legislation, complex rules and procedures and the large number of

documents required upon application, often discouraged candidates, resulted in

significant delays of project evaluation, which led to risk of undermining project ideas,

especially in respect to projects, related to the development and/or implementation of

innovations. Pre-funding, requirements for implementation by the beneficiaries of the

regimes for the award for the implementation of project activities, requirements for

advance guarantees, complicated reporting, delays in verification and reimbursement

process also impede beneficiaries, increase their costs and often limit their free financial

resources, which makes harder further implementation of the project activities.

These challenges are addressed with a continuous improvement of the administrative

capacity of the MA and the beneficiaries, and with the increasing attention given to the

reduction of administrative burdens and bureaucracy (the so-called ―red tapes‖‖), as the

progress is described more detailed in the relevant section of OPIC 2014-2020. For

example, there is a legal requirement introduced for conduction of an information

campaign for potential beneficiaries after the announcement of the calls for proposals

and also a practice for subsequently training of beneficiaries with grant.

For the programming process of OPIC 2014-2020 the ―lessons learned‖ concern:

close relation between the programming process and the Programme

implementation - even procedures which directly address identified needs of the

business, cannot achieve high interest at application stage or effectiveness at the

implementation stage, if the complication of the procedures does not allow active

participation and focuses on the implementation and benefits instead;

the need to define "successful" project means not only ―well-written‖ or ―well-

reported‖ project. The administration itself should be motivated not only to

minimise the risk of errors, but also to maximise the benefits for the beneficiary

and to achieve the desired objectives both on project and procedure level, as well

as on the level of priority axis and even programme level. Last but not least, a

project has effect as long as it has attracted funding from other sources and thus

ensures sustainable results.

Lessons learned 2007-2013 in terms of structuring Programme’s investments

Specifically in terms of innovation, the OP 2007-2013 defines quite appropriately the

economy based on knowledge and innovation as a separate priority of key importance.


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After the modification of the Programme in 2012 the total amount of the Priority axis is

€ 210,692,798, including national co-financing. The share of certifited costs till 31st

Dec 2013 is just over 10% , the main reasons for this are: late start of some of the

procedures, complex procedures and restrictions at application stage. After 2012 a

positive development occurs after the modification of the definition for ―innovation‖

according to the Oslo Manualand opening the possibility for funding not only

developed by the innovative enterprise innovation, but also developed by other entities

innovations .

According to a BCCI study almost half of the enterprises (45%) do not believe that in

the next 3-5 years will assign the development of a new product to universities and

research institutes . Only 23% of entrepreneurs say they can independently implement

activities in the field of innovation. The most preferred forms of innovation activities

are partnerships with other companies and universities, which is pointed by 37%.

According to the survey, the two main barriers for collaboration between business and

science, are the insufficient information of the business for scientific researches and the

low activity of the universities. Both barriers need to be overcome and in this regard

will seek synergies of interventions under TO 1 within OPIC and OPSEIG.In regard to

the institutional beneficiaries, in the OP 2007-2013 funding was set aside for them in

separate axis in amount of € 37,656,853. Although Priority axis 4 is the smallest one,

is also characterized by an extremely slow rate of progress of the contracts‘

implementation ( 27% certified funds to 31.12.2013), due to:

significant difficulties in pre-financing projects due to budget constraints;

pre-allocation funding under OP results in the so-called ―crowding out‖ effect,

which means failure to receive funds from other sources and make them

dependable on the implementation and reimbursement of project costs ;

difficulties in implementation and reporting of complex multiannual projects ;

inequality with other beneficiaries in terms of the eligible costs for external

consultancies, management team and other project specific implementation

costs.

Given the analysis of the experience from the 2007-2013 period and the need for

effective orientation of the programmes for 2014-2020, in OPIC the approach to the

institutional beneficiaries has been revised and they are subject to support under the

different PA , which will have the following advantages:

a) it will provide more particular direction and contribution for fulfillment of

the general and specific objectives of the Programme and connect them with

appropriate output and product indicators ;

b) it will ensure the flexibility in planning, financing and implementation of

projects as well as overcoming the difficulties of management;

c) it will help the institutions to open to a wider range of financing sources;

d) it will provide opportunities for equal treatment to the Programme

beneficiaries in terms of eligible costs, activities and etc.

As regards to the financial instruments the OP DCBE is often cited as a good practice at

EU level. The budget of the Priority axis after the last modification of the OP is EUR

350 million, which amounts to 30.11% of the Programme‘s budget.


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Under JEREMIE initiative in OP Competitiveness two funds for initial funding with a

total budget of EUR 21 million are supported. According to the annual progress report

2013 under JEREMIE initiative ten calls for proposals have been opened, and over

3,000 applications for funding received. Funding for 73 innovative start-ups was

provided, amounting on 4,384,759 Euros. Where 6 million Euros were invested under

the Programme, with subsequent private investments for 4 million Euros reported.

Under JEREMIE Initiative two instruments for facilitatig bank lending – guarantees,

covering losses on portfolios of loans and risk sharing financing - are implemented. The

two instruments are implemented to ease the conditions of bank lending. Since

December 2013 there are over 4 445 guaranteed loans provided under the guarantee

instrument amounting on 275 million Euros, among which 173 million are for new

SMEs‘ investment. For the same period 1 253 loans for approximately 170 million

Euros were granted in pursuance of the low-interest rate instruments (risk sharing

financing). In the process of raising private capital, in this period two more instruments

for equity funding are provided – VC fund and mezzanine fund. At the end of 2013 the

selection of financial intermediaries for the instrument of co-financing is finalised.

There is no doubt about the financial progress achieved. The table below shows the

allocation of funds among the financial instruments and also the progress in absorbing

(investments or loans for final beneficiaries) till 31.12.201332

Table 1-5: Distribution of financial instruments for OPC 2007-2013

Invitation Instrument

Total

value of

the

portfolio

Funds

from

OPC

Invested

funds /

Loans,

guarantees,

million

EUR

Percentage

of

absorption

JER 009/1 Venture capital fund 20.4 14.3 0 0%

JER 009/2

Guarantees covering the

losses on a portfolio of

loans

301 60.2 275 91%

JER 009/4 Mezzanine fund 60 30 0 0%

JER 009/5

Instrument for

promoting

entrepreneurship and

providing initial funding

21.21 21 4.5 23.6%

JER 009/6 Instrument providing

risk sharing financing 400 200 170 42.5%

32 Based on data from the Annual progress report of the JEREMIE initiative. The funding of the Growth fund is

allocated to the risk-sharing financial instrument and also funds for co-investment, for which at the end of 2013, there

are not agreed funds so they are not included in the table.


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Invitation Instrument

Total

value of

the

portfolio

Funds

from

OPC

Invested

funds /

Loans,

guarantees,

million

EUR

Percentage

of

absorption

Total 802.5 325.5 450 56%

The Holding Fund has contracted more than 93% of the allocated funds under the OP.

The absorption of 56% of the instruments, which means a significant progress,

considering the delayed start of the Programme,. In terms of absorption the most

successful is the guarantee instrument (91% at end of 2013). Given the fact that the

instruments for risk sharing actually began operating in 2013 the rate of 42.5 %

achieved also outlines good perspectives. The actual operations of the VC fund and

Mezzanine funds are about to start. With respect to the Mezzanine fund, the investors

expect future guarantees of the instrument after 2015.

Considering the success of the financial instruments and the fact that aid under OP,

aimed at this type of tools, leads to significant mobilization of private capital, under

OPIC will be provided their operation and in the next programming period, taking into

account the need to ensure a sufficient volume of public information about the progress

of the financial instruments, the selection of financial intermediaries and the level of

achievement of their objectives. The size of the portfolio and type of instruments, which

will continue to be funded are determined based on the results of the use of financial

instruments by OPIC under art. 37 of the (EU) Regulation No.1303 / 2013, which

provides an assessment of market failure or sub-optimal investment situation in the

country and the estimated level and scope of public investment needs.

.

FIs are planned within the different thematic objectives and priority axes, which

follows the overall logic of intervention of the program and ensure the utmost

achievement of the Programme‘s objectives and also the output and result indicators.

LOGIC OF INTERVENTIONS OF OPIC 2014-2020

The contribution of OPIC 2014-2020 to addressing the main needs and challenges of the

Bulgarian economy identified above, in consideration of the lessons learned consists of

the following 6 areas of intervention:

Technological development and innovation – interventions under TO 1

(Investment priority (IP) Art. 5(1) (b) of ERDF Regulation;

Access to finance for supporting entrepreneurship– interventions under TO 3 (IP

Art. 5(3) (a) of ERDF Regulation;

Capacity for SMEs growth– interventions under TO 3 (IP Art. 5(3) (d) of ERDF

Regulation;


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Energy technologies and energy efficiency – interventions under TO 4 (IP Art.

5(4) (b) of ERDF Regulation;

Resource efficiency – interventions under TO 6 (IP Art. 5(6) (g) of ERDF

Regulation;

Security of gas supplies – interventions under TO 7 (IP Art. 5(7) (e) of ERDF

Regulation.

The first area of intervention (Technological development and innovation) is

committed to the achievement of ―smart growth‖ in the areas of the Innovation Strategy

for Smart Specialisation, particularly in regard to research and innovation. There is a

need to strengthen the innovation capacity of enterprises and foster a favourable

environment for innovation and research by supporting existing and effective

structures/organisations. The implementation of the planned indicative actions will aim

at attracting investment for innovative activities, creating and strengthening the capacity

of Bulgarian enterprises for development, deployment and commercialisation of

innovative products, services and business models, as well as for improving the

conditions for carrying out innovation and developing the cooperation between

businesses and research community. This will, in turn, promote greater integration

between the parties of the ―knowledge triangle‖ (Education-Research-Business) for

developing competitive products/services for which there is demand in the market. The

implementation of this Investment Priority will enable a rise in the value added along

the value chain in relation to the Innovation Strategy for Smart Specialisation (RIS3)

thematic objectives, considering the stage and dynamics of the development of the

Bulgarian economy.

Promoting synergistic cooperation and interaction between all players in the national

innovation system and taking coordinated steps across the entire chain – from the

emergence of the idea, through its laboratory testing to the commercialization of the

results – will allow for mitigating the consequences of market failures associated with

the innovation process.

Regional specialisation could have a further positive contribution to the development of

small and medium-sized enterprises (SMEs) according to the sector-specific initiative,

the Small Business Act (SBA) within the context of RIS3. Developing links between

education, research and businesses at regional level and combining local business

development with creating and attracting skilled human resources will stimulate

enhanced competitiveness and degree of internationalization of enterprises and support

the formation of sustainable competitive advantages, which will render businesses more

competitive in the domestic and international market.

The actions under the first area of intervention will contribute to the implementation of

the following objectives under TO 1:

Contribution to the national target under Europe 2020 for increased expenditure

on R&D as % of the GDP;

Contribution to the following results as per Partnership Agreement:

Growth of the enterprises realizing innovation activity;

Support for companies that cooperate with research institutions / other entities;

Support the development of technology parks and laboratories;

Support for innovation clusters;


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Increase R & D expenditure of enterprises.

The second area of intervention (support to entrepreneurship, incl. guarantied

portfolio for financial instruments) aims at achieving both smart growth and,

indirectly, inclusive growth by promoting the establishment of new and sustainable

enterprises to create new jobs for the Bulgarian economy. According to the National

Strategy for Promotion of SME (Small Business Act), in Bulgaria there are conditions

for launching and implementing entrepreneurial initiatives but there is a need for further

measures to simplify the requirements for developing new ideas and facilitating the

access to funding for small enterprises and start-ups. The aim of the support under this

area of intervention will be to increase the entrepreneurial activity and to achieve

successful implementation of new business ideas, as well as successful and accelerated

development of existing entrepreneurial companies leading to economic stabilisation

and growth. As part of entrepreneurship and provides targeted support for SMEs

(through Grants) in emerging areas of intervention that address regional and European

challenges.


increase in entrepreneurial activity;

The third area of intervention (Capacity for SMEs growth) aims to accelerate the

growth rate (―fast‖ growth) and is expected to create opportunities for increasing the

productivity of enterprises and for diversification of their product portfolios and

distribution of their production in new markets through grant support in compliance

with the National Strategy for Promotion of SMEs, as well through improvement of the

access to finance. The competitiveness of enterprises will be strengthened, their

participation in the value added chain will be enhanced, and their achievement of

market stability in a rapidly changing economic and competitive market environment

will be accelerated. Taking into account these circumstances and the position of the

business and its organisations, the OP foresees continued investment in the period 2014-

2020 aimed at improving the production processes in enterprises and facilitating the

transition to high and knowledge-based technologies for improved production, quality

management and increasing opportunities for export orientation and access to

international markets.

There is significant potential to improve the competitiveness and productivity of

enterprises through development of electronic applications and services and use of

business management systems.


Increase of the volume of exports of goods and services generated by SMEs;

Cluster support;

Support for SMEs to participate in promotional activities:

Support for SMEs for the introduction of certificates;

Support for projects of SMEs for growth and export;

Increase of the share of exports in total turnover of SMEs.

The fourth area of intervention (Energy technologies and energy efficiency) will

support sustainable uses of energy and improving the energy efficiency of enterprises.

Compared to the other European countries Bulgaria‘s economy is the most energy

intensive and one of the most heavily dependent on imported energy. Therefore,

improving the energy efficiency of enterprises and promoting the production and use of


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energy from renewable sources for their own consumption (especially in manufacturing

enterprises, which have the largest contribution to the high energy intensity of the

national economy) are crucial to ensure the reduction of the energy intensity of the

Bulgarian economy, and thereby reduction of the distances of the national energy

efficiency target. The actions under the fourth area of intervention will contribute to the

implementation of the following objectives under TO 4:

Contribution to the national targets under Europe 2020:

Increase energy efficiency by 25% by 202033


Reduction of the energy intensity of the economy;

Increase of the energy savings in enteroprises;

Reduction of greenhouse gas emissions.

The fifth area of intervention (Resource efficiency) builds on the need to invest in

achieving a resource efficient economy as a horizontal priority and complementing it

with a pilot and demonstration initiatives focused on promoting industrial symbiosis and

exchange of information between the partners in the value chain.

The introduction of resource-efficient technologies and processes in enterprises is a

prerequisite for enhancing both competitiveness and the quality of life. Given that

increasing the resource effectiveness of enterprises will be addressed by the

interventions under Thematic Objectives 1, 3 and 4 with the help of horizontal principle,

the actions under the present area of intervention will be to a large extent complemented

by the other areas of intervention.

The actions under this area of intervention will contribute to the implementation of the

following objectives under TO 6:


Reduced generation of waste and increased reuse and recycling;

Improved environment and air quality, including in settlements.

The sixth area of intervention (Security of gas supplies) will support the construction

of adequate energy infrastructure as a prerequisite for improving the security of supply

situation in Bulgaria.

Developing interconnections with the energy systems of the neighbouring states will be

of key significance to increasing security and flexibility of energy supply for

enterprises.

With a view to overcoming the main challenges related to the need for compensatory

growth and addressing the areas of intervention described above, the following four

priority axes with relevant investment priorities have been identified:

PRIORITY 1. Technological development and innovations

1.1. Technological development and innovations (―smart‖ growth) – Thematic

33

The target share of renewable energy in the gross final energy consumption has been achieved – in 2012 the share

was 16.3%. At present, efforts are focused on the need to balance the electricity system rather than increase

renewable energy.


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Objective 1 of the Common Strategic Framework;

PRIORITY 2. Entrepreneurship and Capacity for SMEs growth;

2.1. Access to finance for supporting entrepreneurship – Thematic Objective 3 of the

Common Strategic Framework

2.2. Capacity for SMEs to grow – Thematic Objective 3 of the Common Strategic

Framework;

PRIORITY 3. Energy and resource efficiency

3.1. Energy technologies and energy efficiency – Thematic Objective 4 of the Common

Strategic Framework;

3.2. Resource efficiency – Thematic Objective 6 of the Common Strategic Framework.

PRIORITY 4. Removing bottlenecks in security of gas supplies

4.1. Improving energy efficiency and security of supply through the development of

smart energy transmission systems - Thematic Objective 7 of the Common Strategic

Framework

The aim of these four priority axes is to provide a joint support for creating sustainable

and long-lasting competitive advantages for Bulgarian enterprises and accelerating the

transition to a knowledge-based economy, while improving the country‘s performance

under the indicators financial market development, technological readiness, market size,

business sophistication and innovation, as well as to improve security of gas supplies to

enterprises.

With a view to ensuring effective and efficient allocation of ERDF funding, the

determination of the priority axes and investment priorities has been based on the

approach of concentration of resources. Compared to the challenges faced by the

national economy, ESI financial allocations seem very limited. This requires that clear

and attainable objectives should be set to achieve significant impacts on the condition of

enterprises. Furthermore, the funding will complement parallel national efforts in this

area and it is expected that more private expenditure will be leveraged to act as a

catalyst of economic development rather than an end source of funding.

The lessons learned from the current programming period show the critical importance

of access to funding, including for the implementation of grant projects. The application

of financial engineering instruments will aim to leverage more private funding.

Application of financial instruments subject to the specific characteristics of the

different types of projects has been envisaged. Financial engineering instruments will

aim to facilitate access to funding for enterprises and higher rate of utilization and more

flexibility in the implementation of activities at the enterprise level. The main strengths

of financial instruments lie in the option to reuse funding in the long run, speedy

selection and flexibility of implementation for final recipients, including reduced

timeframes and administrative burden of procedures and potential to leverage additional

public or private investment to overcome market deficiencies in accordance with

Europe 2020 and Cohesion Policy priorities.

Investment directed at creating and developing effective and sustainable support and

expertise systems in new and/or existing agencies, organisations and institutions

through development of modern and innovative services has been identified as an


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integral part of the first three priority axes that will directly contribute to enhancing the

innovation and competitiveness of enterprises in the country.

Investment for technical assistance has been identified as a horizontal priority axis. The

goal is to ensure proper management, implementation, monitoring, evaluation,

information and control for the OP and thus to guarantee not only high absorption rates

for ERDF and budget funding but also good performance of OPIC 2014-2020 strategy.

Due to the scope and high number of potential beneficiaries, publicity and awareness

raising measures are also essential – not only in terms of meeting regulatory

requirements, but also as a prerequisite for active participation in the OP, project

maturity, tangible impacts and timely implementation.

1.1.2. Justification for the selection of thematic objectives and corresponding

investment priorities


Page. 43 of 274

Table 1-6: Overview of the justification for the selection of thematic objectives and investment priorities

Selected thematic objective Selected investment

priority

Justification for selection

TO 1. Strengthening

research, technological

development and innovation

Investment priority

1.1. Technological

development and

innovation

Council Recommendation on the National Reform Programme of Bulgaria in 2013 and

containing an opinion on the Convergence program of Bulgaria for the period 2012 to

2016:

Recommendation 5 ―... to improve the access of SMEs and start-ups to finance:

Recommendation 4 ―... by strengthening cooperation between education, research

institutes and enterprises‖.

National targets

National targets set out in the National Reform Programme to increase R & D

investment from 0.6% of GDP in 2012. to 1.5% of GDP by 2020;

In the National Development Programme: Bulgaria 2020 foresees actions for

developing innovative infrastructure and ecosystem and increasing the innovative

activity of Bulgarian enterprises.

Identified needs:

Poor cooperation of different actors in R &D;

Low innovation activity and low value-added innovation

Poorly developed innovation infrastructure and insufficiently attractive

environment for innovation

TO 3. Enhancing the

competitiveness of small and

medium-sized enterprises

Investment Priority

2.1. Access to finance

for supporting

entrepreneurship

Council Recommendation on the National Reform Programme 2013 of Bulgaria as

well as in other European countries and containing an opinion on the Convergence

program of Bulgaria for the period 2012 to 2016:

Recommendation 5. ― … Improve the access to finance for SMEs and start-ups.‖

In NSPSMEs a national target is the need to strengthen the entrepreneurial activity of


Page. 44 of 274


priority


10% in 2012 to at least 12% by 2020

Identified needs:

Difficult acces to sources of financing - although under the access to finance

indicator Bulgaria occupies 10th place in the EU for 2012, only 16.7 percent34

of

Bulgarian SMEs have access to public financial support including guarantees;

Unsatisfactory conditions, especially among young people, improved conditions,

particularly those that create security environment for the realization of

entrepreneurial opportunities and those related to culture and education to develop

an entrepreneurial spirit.

Investment Priority

2.2. Capacity for

SMEs to grow

Council Recommendation on the National Reform Programme of Bulgaria in 2013 and

the Council opinion on the Convergence Programme of Bulgaria 2012-2016

Recommendation 5 "... to improve the access of SMEs and start-ups to finance"

National targets:

In NSPSMEs has set national targets for :

Increasing the share of Bulgarian SMEs that export goods and services to other

Member States. (from 3.15% in 2012 to > 7% in 2020 )

increasing the share of Bulgarian SMEs exporting outside the EU ( 1.76 % in 2012

to > 3.06% in 2020)

Identified needs:

Poor export structure with emphasis on goods and services with low value added;

Low degree of internationalization : 95% of SMEs have a low degree of

34

NSPSMEs 2014-2020


Page. 45 of 274


priority


internationalization and the country ranks 27 in the EU in 2012.

Low rate of introduction of improved production technologies, optimisation of

production processes and production chains, reduction of used resources and,

respectively of product costs - establishing competitive advantages and sustainable

market presence for Bulgarian SMEs.

TO 4. Supporting the shift

towards a low-carbon

economy in all sectors

Investment Priority

3.1. Energy

technologies and

energy efficiency

National targets:

In the National Reform Programme in the implementation of the Strategy "Europe

2020" a national target has been set to increase energy efficiency by 25% by 2020

The National Development Programme: Bulgaria 2020: activities to

improve energy efficiency in enterprises have been foreseen

National needs:

Low energy efficiency in enterprises - Bulgarian economy consumes with 77.34%

more energy per unit of GDP than the average for EU-27, which is one of the

factors limiting the productivity and competitiveness of enterprises in Bulgaria.

Lack of funds for investments in improving energy and resource efficiency.

TO 6. Protecting the

environment and promoting

resource efficiency

Investment Priority

3.2. Resource

efficiency

National targets:

National Development Programme: Bulgaria 2020 and the NSPSMEs activities are

provided to enhance resource efficiency in SMEs, incl. pilot and demonstration

initiatives , as in NSPSMEs is set a specific target for increase of the share of SMEs

with measures of resource efficiency (from 85% during 2012 to more than 93% in

2020)

National needs:

Bulgarian SMEs have the lowest performance resource efficiency among EU


Page. 46 of 274


priority


Member states, which is one of the factors limiting the productivity and

competitiveness of the SMEs in Bulgaria.

Lack of activity, processes and products for enhancing the resources efficiency.

Insufficient and inefficient investments for environmental protection.

TO 7. Promoting sustainable

transport and removing

bottlenecks in key network

infrastructures

Investment Priority

4.1 Improving energy

efficiency and

security of supply

through the

development of smart

energy transmission

systems

National targets:

Electricity and Gas Interconnector Projects and Capacity to Deal with

Disruptions fall under Country Specific Recommendation No 7 (2013) and

Recommendation No 6 (2014) in the National Reform Programme.

Energy independence on the gas market in Bulgaria continues to be among the main

priorities of the country, especially with a view to the recent political and economic

events triggered by the crisis in Ukraine. In order to provide cheaper gas for Bulgarian

producers and improve their competitiveness, and especially in order to guarantee the

energy independence and security of supplies of natural gas, extensive work is

undertaken on all infrastructure projects. Special attention is being paid to the

construction of the reverse gas interconnectors with the neighbouring countries

(Greece, Serbia, Romania and Turkey).

Diversification of gas supplies is one of the main priorities of Bulgaria's Energy

Strategy to 2020.

National needs:

Improving security and flexibility of gas supplies. Bulgaria is an important

transit hub. The strategic geographic location of the country determines the

significant potential for diversification of sources and routes of gas and oil

supplies. National dimensions and efforts are focused on attracting future gas

pipeline routes from Russia, the Caspian region, the Middle East and North

Africa to pass via Bulgaria. The construction of the planned pipelines through


Page. 47 of 274


priority


Bulgaria will increase the security of supply and the development of the natural

gas market in the region.


Page. 48 of 274

1.2. Justification of financial allocation

The justification for the financial allocation (Union support) to each thematic objective

and, where appropriate, investment priority is in accordance with the thematic

concentration requirements, taking into account the ex-ante evaluation.

The allocation of financial resources from the ESI Funds to the different operational

programmes that will be implemented in Bulgaria in 2014-2020 programming period

takes account of the national priorities and needs and is based on a preliminary

allocation of resources by thematic objective in accordance with a specially designed

national model. The allocation is underpinned by criteria that provide a basis for

objective and justifiable financial allocation in line with the national priorities set out in

the National Development Programme: Bulgaria 2020 and the targets of the National

Reform Programme, the needs identified in the analysis of the Partnership Agreement

and the Position of the Commission Services of October 2012 on funding priorities, the

specific Council recommendations on the National Reform Programme, the national

capacity for absorption of funding in the period 2007-2013. The indicative allocations to

the different operational programmes and thematic objectives are based on the final

allocation of EU funding for the implementation of Cohesion Policy in Bulgaria. The

country has been allocated a total of 3,628,667,612 euros from the ERDF, of which a

total of 1 181,615,516 euros is dedicated to OPIC. In accordance with the established

co-financing rate of 85% (Art. 20(3) (b) of Regulation 1303/2013), the national co-

financing of the Programme will amount to 208,520,385 euros (15% of the total budget

of the Programme), in view of which the total budget will be 1, 390,135, 901 euros.

In accordance with the Partnership Agreement, OPIC 2014-2020 will support

investment priorities under five thematic objectives as follows:

Thematic Objective (TO)

Budget allocated to OPIC 2014-2020 by

thematic objective, based on the national

model for financial allocation of ESI

funds

TO 1. Strengthening research,

technological development and

innovation

21,24%

TO 3. Enhancing the competitiveness of

small and medium-sized enterprises 50, 17%

TO 4. Supporting the shift towards a low-

carbon economy in all sectors 19.71%

TO 6. Protecting the environment and

promoting resource efficiency 2,64%

TO 7. Promoting sustainable transport

and removing bottlenecks in key network

infrastructures

3.24%


Page. 49 of 274

Thematic Objective (TO)

Budget allocated to OPIC 2014-2020 by

thematic objective, based on the national

model for financial allocation of ESI

funds

Technical Assistance 3,00%

For each thematic objective OPIC 2014-2020 will be complemented by other ESI-

funded programmes that will address the identified national needs in observance of the

principles of complementary and demarcation and will jointly meet the results of the

different thematic objectives set out in the Partnership Agreement.

Given the focus on clear results and the limited OP budget for each thematic objective,

the adopted approach has been to concentrate resources on those programme-applicable

investment priorities of Regulation 1301/2013 that best address the identified needs,

attract other resources, and allow for the highest integration of measures, including from

different thematic objectives, where this is justifiable and will lead to achieving

synergies..

The relatively low share of the OPIC budget allocated to Thematic Objective 6 is due to

several factors:

The main national needs within the scope of TO 6, including resource

efficiency, will be addressed (in observance of the principle of demarcation) by

five operational programmes: OP Environment (with funding from the ERDF

and the CF), OP Regions in Growth (with funding from the ERDF), Rural

Development Programme (with funding from the EAFRD), OP Innovation and

Competitiveness (with funding from the ERDF) and Programme for Maritime

Affairs and Fisheries (with funding from the EMFF), where the highest share

will be that of OP Environment.

What is relevant to OPIC 2014-2020 from the scope of Thematic Objective 6, is

resource effectiveness of enterprises, which, at the same time, constitutes part of

the horizontal principle of sustainable development. As such it will be

addressed by the guidelines for project selection under other investment

priorities (Technical development and innovation, Capacity for growth of

SMEs, Energy efficiency).

Considering the above, as well as the fact that industry costs for restoration and

protection of the environment in Bulgaria are above the EU average, is the reason for

the relatively low share of the OPIC budget of Thematic Objective 6.

The breakdown by investment priority of the allocations to thematic objectives is as

follows:

Thematic

Objective

Investment

priority

under ERDF

Regulation

Addressed

challenges

Investment

priority under

OPIC 2014-

2020

Financial

allocation to

correspondi

ng axis

TO 1.

Strengthening

research,

Art. 5(1) (b);

Integration of

measures in

Innovation

capacity of

enterprises, incl.

Technological

development

and innovation

100% of the

funding for

TO 1 or


Page. 50 of 274

Thematic

Objective

Investment

priority

under ERDF

Regulation

Addressed

challenges

Investment

priority under

OPIC 2014-

2020

Financial

allocation to

correspondi

ng axis

technological

development

and innovation

accordance

with Art. 5(4)

(f), Art. 5(6)

(f) and Art.

5(6) (g)

through

horizontal

principles

capacity to

develop,

introduce and

distribute eco-

innovation and

innovation

related to

energy

efficiency

21,24% of

the funding

for OPIC

2014-2020

TO 3.

Enhancing the

competitiveness

of SMEs

Art. 5(3) (a) Entrepreneurial

potential

SMEs in new

spheres

Access to

finance for

supporting

entrepreneurshi

p

Covers

16.4% of the

funding for

TO 3 of

OPIC 2014-

2020 or

8.23% of the

programme

budget

Art. 5(3) (d);

Integration of

measures in

accordance

with Art. 5(4)

(f) and Art.

5(6) (g) –

horizontal

principles

Labour

productivity,

production

capacity, export

Capacity for

SMEs to grow

Covers

83.6% of the

funding for

TO 3 of

OPIC 2014-

2020 or

41.95% of

the

programme

budget

TO 4.

Supporting the

shift towards a

low-carbon

economy in all

sectors

Art. 5(4) (b) –

energy

efficiency

Integration of

measures Art.

5 para. 4 c)

Energy

efficiency of

enterprises

Energy

technologies

and energy

efficiency

100% of

OPIC 2014-

2020 funding

for TO 4 or

19.71% of

the

programme

budget

TO 6.

Protecting the

environment and

promoting

resource

Part of the

measures in

accordance

with Art. 5(6)

(g) – efficient

use of

Efficient use of

resources

Resource

efficiency

100% of

OPIC 2014-

2020 funding

for TO 6 or

2.64% of the

programme


Page. 51 of 274

Thematic

Objective

Investment

priority

under ERDF

Regulation

Addressed

challenges

Investment

priority under

OPIC 2014-

2020

Financial

allocation to

correspondi

ng axis

efficiency resources budget

TO 7.

Promoting

sustainable

transport and

removing

bottlenecks in

key network

infrastructures

Art. 5(7) (e) –

improving

energy

efficiency and

security of

supply

Vulnerability to

gas supply

disruptions

Improving

energy

efficiency and

security of

supply through

the

development of

smart energy

transmission

systems

100% of

OPIC 2014-

2020 funding

for TO 7 or

3.24% of the

programme

budget

Technical

Assistance

100% of

OPIC 2014-

2020 funding

for technical

assistance or

3.00% of the

programme

budget

Considering the national specifics, the need to focus interventions on the most pressing

needs and the most important goals, while at the same time ensuring integration of

measures to achieve a synergistic effect of the support, in accordance with the rules for

internal coherence and complementarity, the above-listed OPIC investment priorities

have been grouped in the following five (5) priority axes as follows:

Priority Axis Investment Priority of

OPIC 2014-2020

Budget of

Investment Priority

Budget of

Priority Axis

Technological

development and

innovation

Technological

development and

innovation (Thematic

Objective 1)

21.24% of OPIC

2014-2020 funding 21.24% of the

programme

budget

Entrepreneurship

and Capacity for

growth

Access to finance for

supporting

entrepreneurship

(Thematic Objective 3)

8.22 % of the

programme budget

50.17% of the

programme

budget Capacity for SMEs to

grow (Thematic

Objective 3)

41.95% of the

programme budget

Energy and Energy technologies 19.71 % of the total 22.35 % of the


Page. 52 of 274

Priority Axis Investment Priority of

OPIC 2014-2020

Budget of

Investment Priority

Budget of

Priority Axis

resource

efficiency

and energy efficiency


programme funding programme

budget

Resource efficiency


2.64% of the total

programme funding

Removing

bottlenecks in

security of gas

supplies

Improving energy

efficiency and security

of supply through the

development of smart

energy transmission

systems

3.24% of the total

programme funding 3.24% of the

programme

budget

Technical

Assistance

3.00% of the total

programme funding

3.00% of the

total

programme

funding

OPIC 2014-2020, 2014 BG16RFOP002 – September 2014

Page. 53 of 274

Table 1-7: Overview of the investment strategy of the Operational Programme

Priority Axis Fund

Union

Support

(EUR)

Proportion

of total

Union

support for

the OP

Thematic

Objective

Investment

Priority

Specific objectives

corresponding to the

investment priority

Common and programme-specific

result indicators

Technological

development and

innovation

ERDF 250,990,169 85%

TO 1 Strengthening

research and

development,

technological

development and

innovations

Technological

development and

innovations

Increased innovation

activity of enterprises

Share of innovative enterprises;

Non-R&D innovation expenditure

Entrepreneurship

and Capacity for

growth

ERDF 97,217,060 85%

TO 3 Enhancing

the competitiveness

of SMEs

Access to finance

for supporting

entrepreneurship

Improving the survival

rate of SMEs

including through

stimulating

entrepreneurship

Number of enterprise survivals up to two

years

Entrepreneurship

and Capacity for

growth

ERDF 495,651,181 85%

TO 3 Enhancing

the competitiveness

of SMEs

Capacity for

SMEs to grow

Strengthening

productivity and

export potential of

Bulgarian SMEs

Export volume of goods and services

achieved bySMEs

Productivity of SMEs

Energy and

resource

efficiency

ERDF 232,947,006 85%

TO 4 Supporting

the shift towards a

low carbon

economy in all

sectors

Energy

technologies and

resource

efficiency

Reducing energy

intensity of the

economy

Reduced energy intensity

Energy and

resource ERDF 31,136,631 85%

TO 6 Protecting the

environment and

promoting resource

Resource

efficiency Increased share of

SMEs with measures

Increased share of SMEs with measures of

resource efficiency


Page. 54 of 274

Priority Axis Fund

Union

Support

(EUR)

Proportion

of total

Union

support for

the OP

Thematic

Objective

Investment

Priority

Specific objectives

corresponding to the

investment priority

Common and programme-specific

result indicators

efficiency efficiency of resource efficiency

Removing

bottlenecks in

security of gas

supplies

ERDF 38,250,000 85%

TO 7. Promoting

sustainable

transport and

removing

bottlenecks in key

network

infrastructures

Improving

energy efficiency

and security of

supply through

the development

of smart energy

transmission

systems

Better

interconnectivity with

neighbouring gas

transmission systems

N – 1 standard for infrastructure

Technical

Assistance ERDF 35,423,468 85%

TOTAL: ERDF 1,181,615,516 85%


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2. PROIRITY AXES

The priority axes described below are structured through an integrated approach to

maximize support. Indicative activites for implementing the investment priorities are

shown. These activities are indicative and the list is not exhaustive, both in terms of

number and of opportunities for impact. In accordance with their procedures, the

Managing Authority can add new ones or modify the activities described below in case

that such a change or a new activity correspond to the thematic objectives and the

investment priorities in the priority axis .

Description of the Priority Axes

OPIC

2014-2020

Technological Development

and Innovation

Entrepreneurship

Capacity for growth of

SMEs

Security of gas supplies

Energy technologies and energy efficiency

Resource efficiency

GROWTH AND JOBS

INVESTMENT

PRIORITY 1.1.

PRIORITY AXIS 1:

TECHNOLOGICAL

DEVELOPMENT AND

INNOVATION

INVESTMENT

PRIORITY 4.1

PRIORITY AXIS 4: REMOVING

BOTTLENECKS IN SECURITY OF GAS

SUPPLIES

INVESTMENT

PRIORITY 2.1.

INVESTMENT

PRIORITY 2.2.

PRIORITY AXIS 2:

ENTREPRENEURSHIP AND

CAPACITY FOR GROWTH

INVESTMENT

PRIORITY 3.1

INVESTMENT

PRIORITY 3.2.

PRIORITY AXIS 3: ENERGY

AND RESOURCE EFFICIENCY


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The focus of the priority axes 1 and 2 ―Technologic Development and Innovation‖ and

―Entrepreneurship and Capacity for Growth of SMEs‖ has two mutually complementary

aspects – acceleration of growth (providing "catch up" growth) and supporting the

development of innovation (such as the opportunity of "smart" growth). The production

capacity of enterprises and the technological development and transfer of knowledge

and technology need to be strengthened in parallel with the development and

introduction of innovations and promotion of sustainable entrepreneurship through

financial instruments which synergistically leads to increased competitiveness and

productivity of enterprises, and creates new opportunities on European and international

markets.

A need for three investment priorities has been identified: 1/ tehnological development

and innovation, 2/ access to funding in support of entrepreneurship, and 3/ capacity for

growth of SMEs, which only integrated can address the key challenges for innovation

and competitiveness of the Bulgarian enterprises.

Compliance with the national strategic policies is required in order to achieve maximum

focus and enhanced effect of investments :

Priority axis 1: ‖Technological Development and Innovation" (TO1), is in line

with the Innovation Strategy for Smart Specialisation (RIS3);

Priority axis 2: ‖Entrepreneurship and Capacity for Growth of SMEs ― (TO3), is

in line with the National Strategy for Promotion of SMEs.

Priority Axis "Energy and resource efficiency" also addresses two inter-related aspects

(efficient use of resources and energy efficiency of enterprises), which are the basis of

"sustainable" growth. Integrated approach towards resource and energy efficiency is the

only option for addressing the complex challenges which Bulgarian enterprises face in

terms of their resource inefficiency. It is also necessary to improve efficient use of

resources in companies and increase their energy efficiency and flexibility, which can

lead to sustainable competitiveness of the Bulgarian economy.

This priority axis consists of two investment priorities: 1/ Energy technologies and

energy efficiency and 2/ Resource efficiency.

With aim to achieve maximum focus and impact of investments made under Priority

Axis 3 "Energy and resource efficiency", in Thematic Objective 4 trade and services

sectors are excluded from grant support and under Thematic Objective 6 only pilot and

demonstration project for resource efficiency will be supported.

Priority axis ―Removing bottlenecks in security of gas supplies‖ supports the main

priorities of the Bulgarian energy policy aimed at ensuring energy security,

diversification of sources and routes, energy efficiency, liberalized energy market and

protection of consumers‘ rights.

2.1. Priority Axis 1: Technological development and Innovation

2.1.1. Investment Priority 1.1. Technological development and innovation

In accordance with Thematic Objective 1 "Strengthening research and development,

technological development and innovation", Investment priority 1b/, Regulation


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1301/2013, "encouraging business investment in R&D, development of relations and

cooperation between enterprises, R&D centers and the university sector, in particular

the promotion of investment in the development of products and services, technology

transfer ... " and according to the needs identified at national level within OPIC 2014-

2020, this priority axis includes support for technological development and innovation

in order to increase innovation activities of enterprises. The Council Recommendations

for 2013 highlight the importance of linking education with the needs of businesses as

well as strengthening the cooperation between education-science-businesses

(Recommendation 4); and access to finance for SMEs and start-ups (Recommendation

5).

The Investment priority aims at directly contributing to promotion of innovation activity

of enterprises in the thematic areas identified in RIS3:

a) fostering partnership between innovative enterprises and academia;

b) introducing specific measures for support of innovation activities in enterprises;

c) further development of existing or introducing new financial instruments for

funding innovation activities;

d) support for research and innovation infrastructure for business needs;

e) internationalisation of innovation process;

f) popularisation of good practises of innovation activities.

Specific Objective 1.1.: Increased innovation activity of enterprises

Expected results

The indicative activities in support of that specific objective will lead to increased

innovation activity of the Bulgarian enterprises by creating the necessary innovation

environment and infrastructure for development of innovation; stimulating R&D

activities and innovation in and for enterprises, incl. through cooperationbetween

enterprises or between enterprises and research institutes and universities. The

enhancing of the innovation activity of the enterprises is achieved both by stimulating

investment (both public and private) in R&D and through increased investment in

product, process, marketing and/or organizational innovation. Eco-innovations as well

as innovation in the field of low carbon economy are integral part of OPICapproach to

innovation. This creates prerequisites for building an integrated innovation capacity,

movement up the value chain and creating long-term competitive advantages, incl. into

the ecology and low carbon tehnologies.

Table 2-1: Programme-specific result indicators for ERDF

N

о Indicator

Measuremen

t Unit

Categor

y of

region

Base

value

Base

year

Target value

(2023)

Data

source

Frequency

of

reporting


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1 Share of

innovative

enterprises35

% of the

total number

of

enterprises

Less

develop

ed

regions

27.4 2012 30.4

NSI

Every two

years

2 Non-R&D

innovation

expenditure

% of

turnover

Less

develop

ed

regions

0.49 2012 0.63 NSI Every

even year

Action to be supported under the investment priority:

The support provided within the priority axis is envisaged to be focused on, but not

limited to the following indicative sets of activities:

development of cooperation for innovation between enterprises, between

business and academia incl. internationalisation of the innovation process.

support for innovation in enterprises, incl. development and introduction of new

products, processes and business models in enterprises;

support for development of environment and research and innovation

infrastructure for business needs.

The development of cooperation for innovation between enterprises and, between

business and academia, incl. internationalisation of the innovation process will be

encouraged through implementation of cooperation projects, including clustering and

participation in pro-innovative EU networks and platforms. Opportunities will be

created for companies and leading national and/or European academic and research

groups to collaborate, which will lead to the creation/development of innovative

capacity and sharing resources for the development and implementation of innovative

processes and products, protection and transfer of copywright and license royalties,

commercialization of the results.

On the other hand, mostly for high technology, cluster approach could be applied for

identification and structuring of partnershipswith the aim of technology transfer needed

for introducing innovations in individual companies within the cluster

Furthermore, mutual cooperation could be supported also through the development of

technology transfer offices and technology centers. Support will focus on science-

business relationship management, intellectual property rights, commercialization

through licenses and start-ups, researchers‘ awareness about intellectual property rights

and commercialization.

The Strategy for the Danube Region also contains a priority that OPIC will support

within the development of the "knowledge society" (more specificly, innovation and

ICT). Examples of activities in this regard include the creation of Living Labs for the

development, validation and implementation of new products and services through joint

participation of consumers, the academia and the businesses in the innovation process

(according to the Danube Strategy, the Action Plan for the Danube strategy, PA7), as

well as facilitation of creative knowledge transfer through establishing new design

35 NSI - Innovative enterprises,

as a share of all enterprises. Innovative enterprises include enterprises with

technological and non-technological innovation from the industry (NACE sections B, C, D and E) and

services (NACE sections Н, J and К, and NACE divisions 46, 71, 72 and 73).


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centers and transfer of knowledge from the creative industries to the traditional

enterprises (according to the Danube Strategy, the Action Plan for the Danube strategy,

PA8).

The expected contribution of these supported actions is raising the innovation activity

of enterprises due to the createdopportunities for cooperation, exchange and sharing of

ideas and resources. As a result, the share of companies developing and introducing

innovation in partnership with other participants in the innovation chain will increase,

leading to establishing innovation capacity in the areas set in objectives 1 and 2 of RIS3

and creating long-term competitive advantages for the country. Contribution is expected

also to the objectives and results of the Danube Strategy.

The target group includes Bulgarian enterprises in cooperation with other Bulgarian or

European companies, universities and/or research organizations; Bulgarian start-up

(spin-off) companies based on intellectual property transferred by the Bulgarian or

European universities/research organizations; clusters with potential for high value

added, consortia of enterprises designed to create new products and services.

Support for innovation in enterprises, incl. development and introduction of new

products, processes and business models is associated with investment support,

advisory and support services for development and implementation of innovation in

enterprises.

The expected contribution of these supported activities is expressed mainly in the

increased share of companies which by themselves carry out innovation activities,

develop and disseminate innovation, and as a result, their own innovative capacity and

competitiveness will increase.

The target group includes enterprises developing/introducing innovation incl. existing

enterprises.

Support for development of favourable environment and research and innovation

infrastructure for business needs includes:

construction, equipment and accreditation of thematically focused laboratories

necessary to meet business needs of certification, standardised testing and

technical verification, proof of concept, test models and utility models,

prototyping and other shared infrastructure to support innovation activities of

enterprises, including support for TTOs with constructed basic infrastructure,

technology centres, completion and upgrade of Technology Park ―Sofia Tech

Park‖ .

The supported laboratories are thematically focused laboratories and high-tech

labs for testing and technical verification that provide access to tehnology

options and tools, education and training and mentoring for prototyping and

digital production of innovative ideas and products. This will reduce the risk

associated with the launch of new products and ideas to market prior to proof of

return. Targeted support for Sofia Tech Park aims at up-grading of the existing

innovation environment which embraces all aspects of researches, technological

development and innovations where they can identify, promote and develop

innovative ideas and projects. The aim is to increase the competitiveness of the

science and the entrepreneurship in Bulgaria through improvement of

knowledge exchange between academia and business community supporting

start-ups and innovative ideas catalyzing the process of commercialization of


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R&D activities. The conditions for promotion of projects that create new

knowledge will be improved as well as a potential will be created for innovative

products, processes and services stimulating sectors from the economy with high

added value falling in the scope of the thematic areas and horizontal policies of

RIS3 and will lead to an increase of the competitveness and creation of

additional employment. Support for the development of modern and new for the

country business services related to the management of intellectual property

system, the Bulgarian standardization system and the system for accreditation of

laboratories and new products.

A national environment for world level innovation will be established in order to

stimulate the development of thematic areas defined in RIS3.

The expected contribution of these supported activities is expressed in increased

innovation activity by improving the environment and infrastructure for development

and dissemination of innovations - innovative environment that will support the

development of innovative capacity and create long-term competitive advantages of the

Bulgarian economy by moving up the value chain.

The target group is Sofia Tech Park with the aim to create an eco-system of vertically

integrated enterprises, clusters with potential for high value added, new and already

existing technology transfer offices, associations of companies as well as associations of

companies with scientific organizations, institutions of direct benefit to the innovation

activity of the enterprises.

Specific targeted territories: the territory of the whole country.

Types of Beneficiaries: enterprises or group of enterprises, including partnerships with

research organizations36

(legal entities as well as other forms of partnerships), agencies,

institutions, business organizations and other entities providing services for support of

R&D and innovation in enterprises, Sofia Tech Park, technology transfer offices and

technology centers, clusters.

Guiding principles for the selection of operations

In the selection of operations within the investment priority, the following leading

principles should be followed:

Provision of funding will be made in accordance with the procedures laid down

in national legislation and the internal rules of the MA;

Coordination and synergy - coordination between ESIF programmes at national

level, the horizontal programmes and other instruments of the Union with the

aim to achieve maximum s synergy effect and avoid double funding;

Thematic concentration – support will be provided for operations/investments

falling exclusively within the areas of smart specialization set in objectives 1 and

2 of RIS3;

Need-based funding – the selected operations are supposed to meet key

challenges to the business/economy identified in the Partnership Agreement,

OPIC 2014-2020 Strategy, the relevant strategic documents and documents in

implementation of specific ex-ante conditionality;

36

incl. scientific research institutes of the Bulgaria Academy of Sciences (BAS)


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Promoting operations which end result will contribute to improving resource

efficiency and the respective mitigation of climate change37

;

Supporting operations promoting and contributing to the implementation of

policies in the field of R & D and innovation;

Principle of sustainable development (art. 8 of Regulation 1303/2013) – when

funding operations under OP will be pursued sustainability of the results and

long-term effect on the target groups;

Effectiveness and efficiency of the investments - selected operations should

comply fully with the goals of the OP at the adequate ratio between the

estimated costs and benefits. In the selection of projects will ensure that

investments are directed towards the most sustainable options with the most

efficient use of resources;

Provision of funding in reducing the administrative burden for potential

beneficiaries;

Relevance - selected operations should contribute to the implementation of the

output and result indicators and outcome of the programme;

Sustainability of the investments – ensure sustainability of the achieved results

after project/operation completion;

Principle of partnership and transparency - the criteria for selecting the

operations are subject to approval by the Monitoring Committee of the

Operational Programme;

Principle of equal opportunities - promoting equal opportunities for all,

including accessibility for people with disabilities by mainstreaming the

principle of non-discrimination.

According to the Guide to synergies between the Structural Funds and Horizon 2020

and other research programmes related to innovation and competitiveness (Ref. Ares

(2014) 755 621 - 17.03.2014) despite the increased budget in the area of research,

innovation and competitiveness, what is crucial is to ensure optimal synergy between

the various funds and instruments for addressing global competitive pressures and to

maximize the results and effectiveness of public resources. The European Parliament

and the Council clearly demonstrate that the approach has changed from "it is nice to

have" to "it should have" synergistic effect between ESIF and the Framework

Programmes in the period 2014-2020, Horizon 2020 and COSME. The guide provides

for three main features:

Parallel complementary projects with good timing;

Co-financing under the same project with clear demarcation of expenditure;

Building on the results of the projects under the Framework Programmes, where

the OPIC 2014-2020 strategy envisages to include this opportunity, given the

proximity of the possibilities for reducing the administrative burden. Project

37 According to Guidelines for mainstreaming EP and CCP in the funds for Cohesion Policy, the Common Agricultural Policy and

the Common Fisheries Policy for the 2014-2020


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proposals involving building on the results under 5, 6, 7 Framework Programme

and Horizon 2020 and ECSEL Joint Undertaking, will be advantagously

encouraged under the principle of bonus points in the assessment.

When providing any kind of funding the European state aid legislation will be respected

and checks for the absence of double funding will be carried out.


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Table 2-2: Common and programme specific result indicators for the ERDF

I

D

Indicator Measurement

unit Unit

Fund Category of

Region (where

relevant

Target value (2023) Source of data Frequency of

reporting

М W Total

1 Number of enterprises

cooperating with research

institutions (Activites 1 &

3)

Enterprises ERDF Less

developed

regions

14138

UMIS 2020

Annually


supported to introduce new

to the firm products


developed

regions

302 UMIS 2020

Annually


supported to introduce new

to the market products


developed

regions

30 UMIS 2020

Annually

4 Private investment

matching public support

for innovation or R&D

projects (all activities)

EUR ERDF Less

developed

regions

169,239,766

UMIS 2020

Annually


supported by the Sofia

Tech Park

Number ERDF Less

developed

regions

26 UMIS 2020

Annually


receiving support


developed

regions

504 UMIS 2020

Annually

38 Incl. enterprises in the supported clusters.


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UPlanned financial instruments

Within investment priority 1.1. it is envisaged the use of financial instruments as in

order to increase the investments in innovations new funding models are needed

especially in the areas of commercialization and transfer of knowledge. Of great

importance in that respect is the direct support for technology transfer, for active

commercialization of intellectual property and its management as basic instruments for

knowledge transfer and revenue generation.

The use of financial instruments under the present investment priority is justified also

with the existing constraints for the enterprises related with the limited access to

external sources of funding for innovation (such as development of prototypes or pilot

production), the lack of experience, mentoring, quality consultancy services, and

innovation culture as a whole.

The implementation of financial instruments for encouraging open innovation and

technology transfer will increase the effectiveness and the efficiency of funding due to

the application of market oriented approach to the assessment of the innovativeness and

the economic relevance of funded activities. Additionally this approach will provide

opportunities for attracting foreign direct investments for support of innovation and

stimulation of the demand for innovative products.

The use of financial instruments within this investment priority will focus on, but will

not be limited to the following indicative groups of financial instruments:

• equity and/or quasi equity investments in technology transfer, commercialization

of scientific results, intellectual property rights, new ideas and products;

• support through debt instruments for innovation in enterprises, including

development and launch of new products, processes and business models in

enterprises.

Equity and/or quasi equity investments in technology transfer, commercialization

of scientific results, intellectual property rights, new ideas and products: this

activity envisages the development of an equity instrument (such as technology transfer

fund), that to invest in new innovative enterprises, high technology enterprises,

knowledge-based companies, new or existing spin-offs, innovative infrastructure and

other participants in the innovation ecosystem. Significant part of the investments will

support technology transfer, transformation of scientific works into market oriented

products, processes, technologies, commercialization and management of intellectual

property. It is envisaged the instrument to be managed/implemented in collaboration

with research organizations, managers of research infrastructure, innovation

infrastructure, innovation intermediaries, including the Sofia Tech Park.

It is envisaged to combine the instrument with a grant under Priority Axis 1, providing

funding for technical assistance for specialized assessment of investments, mentoring

and consultancy for intellectual property rights, market analysis and commercialization

of the activities being subject of the investment.

The expected contribution of the instrument results in reducing the gap between

science and business, commercial application of the research results, development of a

favourable innovation environment, attraction of foreign investments and know –how,

the introduction of the Bulgarian enterprises and innovators on the international market.

The target group includes enterprises, Bulgarian enterprises in collaboration with other

Bulgarian or European companies, universities and/or research organizations; research


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and innovation infrastructures, innovation intermediaries, spin-off companies; high

technology enterprises, enterprises specialized in R&D, knowledge-based companies

and other participants in the innovation ecosystem. Support will be provided for

investements falling exclusively within the areas of smart specialization set in

objectives 1 and 2 of RIS3.

Support through debt instruments for innovation in enterprises, including

development and launch of new products, processes and business models in

enterprises: it is a part of the budget of a debt instrument (such as first loss portfolio

guarantee) or it is implemented separately by providing loans and/or leases for

investment in assets and/or working capital for development, and/or launching, and/or

marketing of a new or significantly improved product, service or production process, or

a new marketing approach, or a new organization method. Due to the form of funding it

is envisaged that the support will be focused towards already developed or existing

enterprises (including large enterprises) that need financial resource, but do not dispose

of the necessary collateral. In case the support is provided as part of the budget of a

single guarantee instrument, covering also Thematic objective 3, under the instrument

would be provided minimum criteria for percentage of the allocation of the resources

among the thematic objectives as well as specific requirements for compliance with the

EU legislation regarding the relevant thematic objective.

The expected contribution of these activities results in addressing one of the key

constraints of enterprises in the innovation process namely their access to finance and

the significant costs for the implementation of the innovation projects. Envisaged

activities will influence positively the following barriers: the lack of credit history of

enterprises and the high collateral requirements of the credit institutions.

The target group covers enterprises that develop/launch/introduce innovations,

including existing companies, enterprises engaged with R&D, other knowledge-based

companies. Support will be provided for investements falling exclusively within the

areas of smart specialization set in objectives 1 and 2 of RIS3.


Types of Beneficiaries: fund of funds, credit and financial institutions, fund managers,

etc.

The instruments described in this priority axis are indicative and they may be

supplemented and /or replaced. This may be undertaken especially during reviewing and

updating the ex-ante assessment according to the provisions of the CPR during the

implementation of any financial instrument which has been implemented based upon

such assessment, where during the implementation phase, the managing authority

considers that the ex ante assessment may no longer accurately represent the market

conditions existing at the time of implementation. (Art. 37 par. 2 "g" of Regulation

1303/2013).

Cross-financing: Up to 10% of costs under this priority axis can be funded under

eligibility rules applicable for the European Social Fund (ESF), provided that such costs

are necessary for the proper execution of the operation and are directly related to it.


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2.1.2. Performance framework of the priority axis

Table 2-3: Performance framework for the implementation of Priority Axis 1

Priority

Axis

Indicator

type Name of Indicator

Measu

rement

unit,

where

appropr

iate

Fund

Catego

ry of

region

Milestone

for (2018)

Final target

(2023)51F39

Source of data

Explanation

of relevance

of indicator,

where

appropriate

M W Tot

al

PA 1 Financial Certified expenditure EUR ERD

F

Less

develo

ped

40,826,510 295,282,552 UMIS 2020

Applicable

for the whole

axis

PA 1 Output Number of enterprises receiving

support

Enterpr

ises

ERD

F

Less

develo

ped

57 504 UMIS 2020

Applicable

for the whole

axis

Additional information on the performance framework:

Interim values of the financial indicators and the output indicators are set, based on the experience and lessons learned gained during the

programming period 2007-2013.

39 Target values must be represented in total (M + W) or broken down by gender.

OPIC 2014-2020, 2014 BG16RFOP002 – March 2015

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Categories of intervention

(Reference: point (b)(vi) of Article 96(2) of Regulation (EU) No 1303/2013)

Categories of intervention corresponding to the content of the priority axis based on a

nomenclature adopted by the Commission, and indicative breakdown of Union support.

Tables 2-4, 2-5, 2-6, 2-7: Categories of intervention40

(by Fund and category of region, if the priority axis covers more than one)

Tables 2-4: Dimension 1 – Intervention field

Fund ERDF

Category of region Less developed

Priority axis Code Amount (EUR)

1 056 Investment in

infrastructure, capacities and

equipment in SMEs directly

linked to research and

innovation activities

110,867,669

1 057 Investment in

infrastructure, capacities and

equipment in large companies

directly linked to research and

innovation activities

52,275,000

1 059 Research and innovation

infrastructure (private,

including science parks)

22,652,500

1 062 Technology transfer and

university-enterprise

cooperation primarily

benefiting SMEs

34,170,000

1 063 Cluster support and

business networks primarily

benefiting SMEs

13,005,000

1 065 Research and innovation

infrastructure, processes,

technology transfer and

cooperation in enterprises

focusing on the low carbon

economy and on resilience to

climate change

14,195,000

1 096 Institutional capacity of

public administrations and

public services related to

implementation of the ERDF

or actions supporting ESF

institutional capacity

3,825,000

40

Amounts include total Union support (the main allocation and the allocation from the

performance reserve).


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initiatives

Table 2-5: Dimension 2 – Form of finance

Fund ERDF



1 01 Non-repayable grant 199,990,169

1 03 Support through financial

instruments: venture and

equity capital or equivalent

25,500,000


instruments: guarantee or

equivalent

25,500,000

Table 2-6: Dimension 3 – Territory type

Fund ERDF



1 07 Not applicable 250,990,169

Table 2-7: Dimension 4 – Territorial delivery mechanisms

Fund ERDF



1 06 Community-led local

development initiatives 27,858,750



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2.2. Priority Axis 2: Entrepreneurship and Capacity for growth of SMEs

2.2.1. Investment Priority 2.1. Access to finance for supporting entrepreneurship

In accordance with Thematic Objective 3, Investment Priority 3a/Regulation 1301/2013

"promoting entrepreneurship, in particular by facilitating the economic exploitation of

new ideas and fostering the creation of new businesses ..." and according to the

identified needs at the national level within OPIC 2014-2020 and Recommendation No

5 (to improve access to finance for SMEs and start-ups) of the Council for 2013, this

investment priority provides for support to promote entrepreneurship and facilitate

access to financing for enterprises (both existing and newly created) under priority area

"Entrepreneurship " and "Access to Funding" of the National Strategy for Promotion of

SMEs 2014-2020.

Specific objective 2.1: Improving the survival rate of SMEs including through

stimulating entrepreneurship

UExpected results:

The implementation of the indicative activities under this investment priority aims at

achieving positive effect on the sustainability of the newly created enterprises.

According to SBA Fact Sheet for Bulgaria reviewing the demographic data for the

business, the latest available data (2011) show high level of dynamic. In the same year

37 000 SMEs are closed and more than 36 000 are created. The reasons for the high

level of dynamic according to the cited document are numerous, incl. financial defects

of the Bulgarian sector of the SMEs, incl. with the access to finance.

Table 2-8: Programme specific result indicators for the ERDF

No Indicator

Meas

urem

ent

unit

Category

of region

Baseline

value

Baseline

year

Target

value

(2023)

Source of

data

Frequen

cy of

reportin

g

1 Number of

enterprise

survivals up to

2 years 41

% Less

develope

d regions

74.5 2012 77.0 NSI/

Eurostat

Once in

two

years


Financial instruments in support of entrepreneurship incl. financial instruments

combined with grants;

Encouraging entrepreneurial ideas in areas related to European and regional

challenges and sectors defined in the National Strategy for Promotion of SMEs.

41

For calculating the base and target value of the indicator are used NSI‘s data. Enterprises with 0

employees are not included.


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Financial instruments in support of the entrepreneurship, incl. financial

instruments combined with grant: the indicative activities, their contribution to the

specific objective, planned target groups, target areas and type of beneficiaries are

described in the part ―Planned use of financial instruments‖.

Encouraging entrepreneurial ideas in areas related to European and regional

challenges47

42 and sectors defined in the National Strategy for Promotion of SMEs is

envisaged as an integral part of the entrepreneurship as an investment priority of the

OPIC strategy funded with grants. Given the particular importance for the EU of certain

specific areas43

related to European and regional challenges, support will be provided

for enterprises in specific areas48F, e.g. creative and cultural industries, companies

developing new products and services related to an ageing population, care and health,

including social entrepreneurship. Support of ideas that will be implemented by social

entrepreneurs and cooperatives of people with disabilities, women-entrepreneurs, start-

up entrepreneurs – persons up to 29 years and for persons aged over 50, starting new

business is also envisaged.

According to the Partnership Agreement the focus will be on regions with specific

demographic features. Entrepreneurship within the Strategy for the Danube Region can

also get support under this investment priority.

The expected contribution of these activities is development of new businesses and

enhancing competitiveness of the existing ones and the creation and sustainability of

jobs therewith in order to achieve growth in emerging areas related to European and

regional challenges.

The target group of this set of measures are: enterprises willing to implement

entrepreneurial ideas in the field of healthcare, the processes associated with population

aging, demographic issues, cultural and creative industries and others.

Territorial scope: all measures and activities within this investment priority will be

implemented throughout the country.

Types of Beneficiaries: start-ups (newly registered) and existing enterprises in the

sectors defined in the National Strategy for Promotion of SMEs and in the area of

creative and cultural industries, enterprises developing new products and services

related to an ageing population, care and health, social entrepeneurship, etc.

UGuiding proinciples for the selection of operations U:

The following guiding principles should be observed in the selection of operations

within investment priority 2.1:






42

Under paragraph (8) of the Preamble to Regulation 1301/2013 43

Creative and cultural industries, healthcare, activities related to the aging of the population, in

accordance with paragraph (8) of the Preamble to Regulation 1301/2013 with up to 2% of the

Programme‘s budget


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implementation of specific ex-ante conditionalities;

Promoting operations whereby the end result will contribute to mitigate or abate

climate change44

;

Projects in RIS3 areas of smart specialization will be given priority;

Principle of sustainable development (art. 8 of Regulation 1303/2013) -

Managing Authority will ensure compliance with the principle of sustainable

development on the funding of operations under OP;

Effectiveness and efficiency of the investments - selected operations should fully

comply with the goals of the OP at adequate ratio between the estimated costs

and benefits. In the selection of projects it will be ensured that investments are

directed towards the most sustainable options with the most efficient use of

resources;



Sustainability of investments – ensure sustainability of the achieved results after

project/operation completion;

Principle of partnership and transparency - the criteria for selection of operations

are subject to approval by the Monitoring Committee of the Operational

Programme;



principle of non-discrimination;

Specific thematic focus - financed through grants will be operations in areas

related to European and regional challenges and sectors defined in the "National

Strategy for the Promotion of Small and Medium Enterprises" 2014 to 2020.

When providing any kind of support, the European state aid rules will be complied with



According to Communication from the Commission to the European Parliament, The

Council, The European Economic and Social Committee and the Committee of the

Rregions ―Entrepreneurship 2020‖ Action plan, the access to finance constitutes one of

the most significant constraints on growth and entrepreneurship in Europe.

Entrepreneurs particularly have difficulties raising finance in the early stages of their

businesses. It is also important to increase the quality and financial returns of start-up

projects.




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An important component of a successful entrepreneurial ecosystem consist of an array

of early stage investors that provide seed and first round equity investments. These

investors use an extensive network of peers and provide valuable knowledge and

support about the market and the development of the venture "smart money".

In relation to this the planned use of financial instruments within the present investment

priority includes without limiting to the following indicative groups of financial

instruments:

• Equity and quasi-equity investments in seed capital;

• Equity and quasi-equity investments in start-up capital and early stages of

development.

Equity and quasi-equity investments in seed capital: the activities will be

implemented through equity instrument (e.g. Acceleration and Seed fund), that

combines two interrelated components: acceleration component, which provides initial

financing, supplemented by mentorship, and this stage ends up with a final product

concept, prototype or beta version; the seed component provides funding to successful

graduates from the acceleration component as well as supports other start-ups.

The instrument is envisaged to be combined with grants for ensuring a technical

assistance support for some of the activities of the funds.

The expected contribution of these activities is to create new sustainable businesses

and jobs therewith, by increasing entrepreneurial activity as well as successful

implementation of new business ideas.

The target group of this set of measures is: starting entrepreneurs, newly registered

companies wishing to implement a business idea amounting more than € 25,000; start-

up companies;

Equity and quasi-equity investments, providing capital for start-ups and

companies in the early stages of development: the activities will be implemented

through equity instrument (eg. Risk Capital Fund), the instrument is focused primarily

on micro, small and medium-sized enterprises (SMEs) in the field of high technologies

and at the stage of early development, which often have difficulties finding additional

capital to support their growth, as they are considered too risky.

The expected contribution: A considerable part of the newly created enterprises cease

their activity during the first five years from their establishment. The companies usually

do not have access to adequate ecosystem supporting their growth. Providing

appropriate support can significantly increase the success of the new enterprises.

Target group: SMSs in their early stages of development, innovative SMEs, high-tech

SMEs, SMEs with high risk profile.

Territorial scope: all measures and activities will be implemented throughout the

country.

Types of Beneficiaries: fund of funds, fund managers, etc.








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1303/2013).


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Table 2-9: Common and programme specific output indicators for the ERDF

ID Indicator Measurement unit Unit Fund Category of

Region (where

applicable)

Target value (2023)49F45

Data source Frequency

of reporting

М W Total

1 Number of new enterprises

supported (all activities)

Enterprises ERDF Less developed

regions

390 UMIS 2020

Annually

2 Number of enterprises receiving

support (all activities)


regions

564 UMIS 2020

Annually

3

Number of enterprises receiving

financial support other than grants

(Activity 1)


regions

392

UMIS 2020

Annually


grants


regions

172 UMIS 2020

Annually

5 Private investment matching public

support to enterprises (grants)

EUR ERDF Less developed

regions

5,155,952 UMIS 2020

Annually


support to enterprises (non-grants)

EUR

ERDF

Less developed

regions

7,140,000 UMIS 2020

Annually

7 Employment increase in supported

enterprises

full-time equivalents ERDF Less developed

regions

390 UMIS 2020

Annually

45

For the ESF, this list includes common output indicators for which a target value has been set. Target values may be presented as a total (men+women) or broken down by

gender. For the ERDF and the Cohesion Fund, gender breakdown is in most cases not relevant. ―M‖ = men, ―W‖=women, ―T‖= total.


Стр. 75 от 274

2.2.2. Investment Priority 2.2: Capacity for SMEs to grow

In accordance with Thematic Objective 3 Investment Priority 3d/Regulation 1301/2013

"support the capacity for growth of SMEs at regional, national and international markets

and participation in the innovation process" and according to the identified needs at

national level within the OPIC 2014-2020 and Recommendation No. 5 (to improve

access for SMEs and start-ups to finance) of the Council for 2013, under this investment

priority support is to be provided for strengthening the competitiveness of the Bulgarian

enterprises, including meeting the criteria for priority areas "Access to Finance",

"Internationalization" and "Skills and innovation" of the National Strategy for

Promotion of SMEs 2014-2020.

Specific Objective 2.2.: Strengthening productivity and export potential of Bulgarian

SMEs

UExpected results

The implementation of the indicative measures under this investment priority aims at

achieving a positive effect on the development of a sustainable market competitiveness

of the Bulgarian SMEs, in order to increase their productivity and export potential.

Particular emphasis is placed on the quality of products and services to businesses, their

potential to realize higher performance in the value chain and rapid provision of market

stability in a highly dynamic and competitive environment. The expected results are

related to the creation and development of competitiveness of the enterprises based on

improved efficiency and effectiveness of the production processes, incl. by improving

resource efficiency, increased production capacity and quality of products, improved

capacity to manage and implement new business models and practices. By accessing the

technology and innovative resource, the Bulgarian SMEs will realize the opportunities

offered by the global market and thus improve their market position.


N

o Indicator

Measuremen

t unit

Category

of region

Baseline

value

Baselin

e year

Target

value

(2023)

Sourc

e of

data

Frequenc

y of

reporting

1 Export

volume of

goods and

services

achieved by

SMEs

Billion Euro Less

develope

d regions

8.1 2012 9.18 NSI Every

two years

2 Productivity

of SMEs

value added

at factor

costs (BGN

in

thousand)/e

mployed

person

Less

develope

d regions

16.8 2012 19.3 NSI Every

two years

Description of the types and indicative activities to be financed and their expected

contribution to the relevant specific objectives:


Стр. 76 от 274

The support under this investment priority is envisaged to be focused on, but not limited

to the following indicative groups of activities and combinations thereof:

general productive investments for enhancing the production capacity for growth

through effective and efficient use of the factors of production and through

creation of opportunities for adoption and adaptation of European and

international knowledge and technology;

support for specialized services to SMEs to develop and strengthen the

management capacity;

support for the growth of businesses by improving the quality and by promoting

the use of ICT and services;

support for the implementation of activities and services for direct benefit of the

business development and opportunities for SMEs export.

The general productive investments for improving the production capacity for

growth and creating competitive advantage through the effective and efficient use

of the factors of production and through creation of opportunities for adoption

and adaptation of European and international knowledge and technology will

include measures to increase productivity, effective and efficient use of the factors of

production (human capital, natural resources and technology), improvement of

production processes through investments in tangible and intangible assets, introduction

of leading technology solutions and/or reengineering of processes to expand production

by adding new features or improving the existing products and services and

diversification of operations by diversifying the portfolio of businesses and the access to

markets.

Efficiency and competitiveness of enterprises will be improved through measures for

implementation of new technologies / practices / methods / systems to improve resource

efficiency and effectiveness in the production process, implementation of best practices

/technological methods / technologies / processes to reduce consumption of natural

resources, waste technologies, recycling of secondary raw materials and production

waste, regeneration etc.

The expected contribution from the implementation of this set of measures relates to

improving competitiveness and creating potential for export and as a result - improving

market presence of Bulgarian SMEs - through embedded technology to improve the

manufacturing process to achieve higher performance, reduce production costs and

optimize the production chain, respectively, increase the added value and actively

involve in all stages of the added value chain.

The target group of indicative measures is: SMEs under NSPSMEs.

Support for specialized services to SMEs to develop and strengthen the

management capacity will be directed to the management of the production factors

with an emphasis on building the capacity for adoption and adaptation of the European

and international knowledge and best practices. To increase competitiveness and as a

result - the export potential of Bulgarian SMEs through investment will be encouraged:

development, implementation and certification of quality management, environmental

protection, eco labeling, energy management, information security and others under

international, European and national standards; development, transfer, implementation

and certification of good manufacturing practices; services for processes reengineering

in enterprises; transfer of new models for managing change and quick adaptation to


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them; develop strategies for marketing, research and transfer tools to enter new markets

to satisfy market demand and diversification of supply.

This set of measures also includes support to improve the conditions and processes for

the functioning and development of SMEs and to ensure fair competition and a

favorable business environment for economic operators (eg. metrological and technical

supervision, quality control and notification to conformity assessment bodies) -

monitoring of compliance with the legal obligations of producers and economic

operators to avoid doing business in the "informal sector"; completion and accreditation

of laboratories for checking and validation the conformity of national and EU quality

standards and brands recognition of national product. Additional support will be

provided in the implementation of the overall policy to ensure compliance of Bulgarian

products with international quality standards to support growth of enterprises.

The expected contribution of the implementation of this measures is related to

improving the capacity of Bulgarian SMEs to work in intense competitive markets,

increasing competitiveness and respectively the stable presence of Bulgarian SMEs on

the foreign markets by improving, maintaining and ensuring the quality of products /

processes / services and provision of objective guarantee for the quality and use of good

manufacturing practices, and by developing and strengthening management capacity.

The target group of indicative measures is: SMEs under NSPSMEs, organizations,

institutions, agencies for business support and improvement of business environment.

Support the growth of enterprises by promoting the use of ICT and services – the

support aims at improving the quality of existing processes, products and services

through the development and implementation of ICT-based systems and applications,

including "virtualised", "cloud" and "mobile": for business management, including

those for integration of various units and locations of a company, computer aided

design, engineering and production; for transformation of business and operating

processes that lead to increased productivity and competitiveness; electronic business

platforms to improve access to foreign markets. Support will be also provided through

introduction of pilot voucher schemes, including innovation vouchers in the ICT field.

The expected contribution of the implementation of this measures is related to

improving the capacity of SMEs for doing a competitive and sustainable business in

dynamic emerging markets, as well as to providing faster and easier access to foreign

markets through increasing and improving the use of ICT, and optimization of business

process management.

The target group of the indicative measures is: SMEs under NSPSMEs, organizations,

institutions, agencies for business support and improvement of the business

environment.

Support for the implementation of activities and services for direct benefit to

business development and opportunities for SMEs export – investment will be made

for improvement of entrepreneurial culture on unification of SMEs in clusters;

promoting international activities of Bulgarian SMEs by providing information and

advices about European and third country markets, organizing trainings for

internationalization and export management of SMEs, organization of showrooms and

information events in Bulgaria, of business forums in the country and abroad,

supporting the participation of enterprises in trade missions abroad, as well as in

national and international exhibitions to promote Bulgarian production; information,

business statistics, databases and etc.; investment and export-oriented activities,


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including support to export-focused associations, organizing visits to potential investors

and partners of SMEs in the country; programmes to attract foreign investments in

targeted sectors and countries through proactive investement marketing.

In the field of tourism the support for SMEs will be realized through institutional

support for establishment and operation of organizations for management of tourist

areas regulated by the Law on Tourism, including activities aimed at: capacity building

of the enterprises for easier access and presence on the national and international

markets; for establishment of a unity system for tourist information at national level as a

platform for networking tourism business, tourism organizations and institutions;

support for the introduction of ICT and provision of ICT services; conducting market

studies, analyzes and forecasts; developing product, marketing and investment concepts,

strategies, plans, etc.; organizing business forums in the country and abroad, supporting

participation in events and exhibitions, (regional, national and international).

The expected contribution from the implementation of these measures relates to the

development of export orientation, awareness, partnership and international market

presence of Bulgarian SMEs and as a result increase in the export of Bulgarian SMEs

by creating opportunities for the Bulgarian SMEs for realization on foreign markets,

promotion of production, expanding access to and provision of information for foreign

markets.

The target group of the indicative measures is: SMEs under NSPSMEs, associations

and business associations as well as organizations and institutions that are associated

with the implementation of activities and provision of services in support of business

and improvement of business environment.

Territorial scope: measures and activities within this investment priority will be

implemented throughout the country, and some limited activities abroad are also

possible.

Types of Beneficiaries: existing micro, small and medium-sized enterprises according

to the National Strategy for Promotion of SMEs 2014-2020 for operations financed

through grants, clusters (including new and existing clusters within the Strategy for the

Danube region, the Action Plan, PA 3), business associations as well as organizations

and institutions that are associated with implementation of activities and provision of

services in support of business and improvement of business environment.

UGuiding principles for the selection of operationsU:


within the investment priority:


in national legislation and the internal rules of MA;



aim to achieve maximum synergy effect and avoid double funding;

Projects in RIS3 areas of smart specialization will be given priority;






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Promoting operations whereby the end result will contribute to mitigate or abate

climate change46

;


Managing Authority will ensure compliance with the principle of sustainable


Effectiveness and efficiency of the investments – the- selected operations should

fully comply with OP goals at adequate ratio between the estimated costs and

benefits. In the selection of projects it will be ensured that investments are

directed towards the most sustainable options with the most efficient use of

resources;



Sustainability of investments – ensure sustainability of the achieved results after

project/operation completion;







Specific thematic focus - in the selection of operations financed through grants

key importance will be given to the "National Strategy for the Promotion of

Small and Medium Enterprises" 2014 - 2020.






Стр. 80 от 274


ID Indicator Measurement unit Fund Category of

Region (where

applicable)

Target value

(2023)50F47

Source of data Frequency of

reporting

M W Total


support (all activities)


regions

7,411 UMIS 2020

Annually


grants


regions

1,464 UMIS 2020

Annually


financial support other than grants


regions

3,447 UMIS 2020

Annually


non-financial support


regions

2,500 UMIS 2020

Annually


support to enterprises (grants)


regions

153,047,615

UMIS 2020

Annually


support to enterprises (non-grants)


regions

438,000,000

UMIS 2020

Annually

47

For the ESF, this list includes common output indicators for which a target value has been set. Target values may be presented as a total (men+women) or broken down by gender.

For the ERDF and the Cohesion Fund, gender breakdown is in most cases not relevant. ―M‖ = men, ―W‖=women, ―T‖= total.


Стр. 81 от 274


High importance for the strengthening of the export potential of the SMEs represents:

decrease of the constraints among the enterprises related with difficult access to finance

due to the high collateral and interest rates; improve of the access to SMEs to the

markets for risk capital, as well as increase of the level of awareness of the investors

concerning the capacity of the SMEs.

In relation to the above mentioned the planned application of financial instruments

under this investment priority is envisaged to be focused on, but not limited to the

following indicative groups of financial instruments:

equity and/or quasi equity investments for support of enterprises with high

potential to grow;

support through debt instruments for growth and development, facilitating

improvement of the access to finance of the enterprises;

support through debt instruments for microfinance tailored to needs for finance

for growth of micro enterprises;

Equity and/or quasi equity investments for support of enterprises with high

potential to grow: the activities will consist of investments in the development of

SMEs and they may include and mezzanine capital, as well. The instrument will

focus on enterprises in their growth stage or mature stage of development, which

need additional investments in order to implement their strategy for growth..

The expected contribution of the instrument is to increase the capacity for growth

of the SMEs, to support the internationalization of the enterprises through the

expansion of their capacity for growth on international markets. The instrument will

lead to improvement of the management capacity and the organization of the

enterprise activity, as a result of the attracted investments. That will lead to the

development of their capacity to participate in the innovation process.

The target groups of this set of measures are: SMEs in phase of growth or mature

stage of development, other relevant SMEs.

Support through debt instruments for growth and development, facilitating

access to finance for enterprises: will be provided as part of the budget of the debt

instrument (e.g. First Loss Portfolio Guarantee) under Thematic Objective 1 or as a

single debt instrument. The support will cover loans and / or leases for investments

and / or working capital for growth and development of SMEs.

Expected contribution: the instrument will contribute to increased competitiveness

and respectively to the sustainable presence of Bulgarian SMEs in national and

international markets by improving, maintaining the quality of the delivered

products / processes /services, and will allow the credit and financial institutions to

extend the portfolio of the funded SMEs and will facilitate the access to debt

financing ofr many small and medium-sized enterprises which are facing difficulties

in accessing traditional banking system.

The target group: SMEs at the stage of their growth or maturity; other relevant SMEs.

Support through debt instruments for microfinance tailored to needs for finance

for growth of micro enterprises: will be implemented through an instrument for micro


Стр. 82 от 274

loans mainly for micro enterprises at preferential interest rates and collateral

requirements. The instrument may be implemented as a portfolio risk sharing loan.

The expected contribution of the implementation of this instrument is to fill the

existing gap in the Bulgarian market, where currently the micro funding is not well

developed, while focusing on the problems of micro enterprises related with the access

of finance and barriers for growth.

The target group of the indicative measures is notably micro enterprises.

Territorial scope: all measures and activities will be implemented throughout the

country.

Types of Beneficiaries: fund of funds, credit and financial institutions and other entities

entitled to grant credits on the territory of the Republic of Bulgaria, fund managers, etc.








1303/2013).


eligibility rules applicable for the European Social Fund (ESF), provided that such costs

are necessary for the proper execution of the operation and are directly related to it.


Стр. 83 от 274

2.2.3. Performance framework for the implementation of the priority axis

Table 2-12: Performance framework for the implementation of Priority Axis 2

Priority

Axis

Type of

Indicator Name of Indicator

Measur

ement

unit,

where

appropr

iate

Fund

Categor

y of

region

Milestone for

(2018)

Final target

(2023)51F48

Source of data

Explanation

of relevance

of indicator,

where

appropriate M W Tot

al

PA 2 Financial Certified expenditure EUR ERD

F

Less

develop

ed

188,847,615 697,492,050 UMIS 2020

Applicable

for the whole

axis

PA 2 Output Private investment matching

public support to enterprises

(grants and non-grants)

EUR ERD

F

Less

develop

ed

63,093,284 603,343,567 UMIS 2020

Applicable

for the whole

axis

Additional information on the implementation framework:


programming period 2007-2013..

48

Target values must be represented in total (M + W) or broken down by gender.


Стр. 84 от 274








Fund ERDF



2 001 Generic productive

investment in small and

medium – sized enterprises

(‗SMEs‘)

370,170,945

2 063 Cluster support and

business networks primarily

benefiting SMEs

32,512,500

2 066 Advanced support

services for SMEs and groups

of SMEs (including

management, marketing and

design services)

42,021,368

067 SME business

development, support to

entrepreneurship and

incubation (including support

to spin offs and spin outs)

68,000,000

2 073 Support to social

enterprises (SMEs) 14,608,530

2 076 Development and

promotion of cultural and

creative assets in SMEs

2,921,706

2 077 Development and

promotion of cultural and

creative services in or for

SMEs

2,921,706

2 082 ICT Services and

applications for SMEs

(including e-Commerce, e-

Business and networked

business processes), living

labs, web entrepreneurs and

ICT start-ups)

30,036,486

49




Стр. 85 от 274







initiatives

21,675,000


Fund ERDF





instruments: venture and

equity capital or equivalent 102,000,000


instruments: loan or

equivalent 12,750,000



equivalent 102,000,000


Fund ERDF





Fund ERDF



2 06 Community-led local

development initiatives 31,222,026



Стр. 86 от 274

URationale for Priority Axis 3

Bulgarian enterprises rank first in energy and resource intensity per unit of output and

somewhere in the last positions in environmental performance, which are the main

prerequisites for the creation of sustainable competitiveness. High levels of

consumption and cost of raw materials and energy in the production and the low level

of environmental performance are related to depreciated and outdated technologies

and limited access to new practices, systems and production patterns. Renewal of the

existing production equipment is indispensable, but is delayed due to lack of financial

resources and relatively slow return on investment in new ones, as the prices of

electricity and resources in the country are still some of the lowest. It‘s necessary to

encourage businesses to undertake investments to increase the resource and energy

efficiency, which will reduce the cost of production per unit of output, will contribute

to the introduction and development of eco-industries and increase sustainable

competitiveness of enterprises.

Priority Axis 3 "Energy and Resource Efficiency" will provide targeted support for the

transition to a low carbon economy in all sectors of production (Thematic Objective 4 )

and promote efficient use of resources (Thematic Objectivel 6 ).

Promoting energy efficiency and resource efficiency in eneterprises, especially those

from the manufacturing industry, is a important and imperative process since these

companies contribute in the greatest extent to the low productivity of resources and the

low energy efficiency of the economy. According to the framework proposed by the

European Commission52F

50, energy efficiency is a key component of resource efficiency

and the integrated guidelines of the Commission indicate that a decoupling of economic

growth from use of resources is necessary; and the environmental challenges turn into

opportunities for growth through efficient use of natural resources. The desired and

expected effect of the targeted support for improving energy efficiency and

environmental performance in the economy can only be achieved through joint

implementation under one priority axis of measures to introduce energy efficient

technologies and productions for effective use of resources in the companies, in

compliance with:

4.b/of Art. 5 of Regulation 1301/2013 "Promotion of energy efficiency and use

of renewable energy in enterprises";

6.g/ of Art. 5 of Regulation 1301/2013 "Support for industrial shift towards a

resource efficient ecomomy, through promoting green growth, eco-innovation

and environmental performance management in the public and private sector" -

in the part on effective use of resources.

In line with this framework, and seeking a synergistic result, interventions under

Priority Axis 3 are grouped into two investment priorities

Investment Priority 3.1: Energy technology and energy efficiency;

Investment priority 3.2: Resource efficiency.

50

Resource Efficient Europe flagship initiative и Resource Efficiency Scoreboard

2.3. Priority Axis 3: Energy and Resource Efficiency

http://ec.europa.eu/resource-efficient-europe


Стр. 87 от 274

2.3.1. Investment Priority 3.1: Energy technologies and energy efficiency

In accordance with Thematic Objective 4 "Supporting the shift towards a low carbon

economy in all sectors" and according to the identified needs at national level within the

OPIC 2014-2020, this investment priority provides for support for reducing the energy

intensity of the economy, primarily through increased energy efficiency and flexibility

of the enterprises, and hence of the country's economy in line with the Energy Strategy

of R. Bulgaria till 2020 and National Energy Efficiency Action Plan 2014-2020. The

enterprises are to be supported for measures with energy saving potential on the basis of

energy audit and thereby their implementation is expected to contribute with more than

7 % to the national objective for additional energy savings in EEP51

set in the Plan and

more than 40% of the objective for additional energy savings by the industry.

Specific Objective 3.1.: Reducing energy intensity of the economy

UExpected results

As a result of the implementation of the activities envisaged under this priority

investment, an improvement of the energy efficiency of the enterprises is excpected,

which shall result in reduction of the energy intensity both at the level of separate

production enterprises and for the entire economy.


N

o

Indicat

or Measurement Unit

Category

of region

Baselin

e

value

Baseline

year

Target

value

(2023)

Sour

ce of

data

Frequency

of reporting

1 Energ

y

intensi

ty of

the

econo

my

t.o.e. per 1000 euro

GDP

Less

develope

d regions

0.671 2012 0.604 NSI Four times

for the

implementat

ion period

of OPIC

UActions to be supported under the investment priority:

Support within the investment priority will be focused, but not limited to the following

indicative sets of activities:

support for increasing the energy efficiency in enterprises;

institutional support for sustainable energy development.

Support for increased energy efficiency in enterprises - includes preparing and

conducting audits for energy efficiency in enterprises52

and subsequent implementation

51

National objective fir additional energy savings in EEP is 230 ktoe/y as the objective for the industry is

calculated at 33.97 ktoe/y. 52

to perform energy audits will be supported only enterprises that do not fall under the mandatory regime

under the Energy Efficiency Directive


Стр. 88 от 274

of the recommended measures in the audit reports. The support includes investments in

tangible and intangible assets, energy management and implementation of technologies

and production lines, ICT-based systems to manage energy efficiency, waste heat

recovery in the industry, support of highly efficient small-scale and micro-co-

generations and rehabilitation of district heating networks, etc that increase the energy

efficiency in the supported enterprises. leading to increased energy efficiency in the

supported enterprises. As additional activities will be supported the use of RES energy

for own needs (electric and heat energy and cooling energy). Given that buildings have

a significant contribution to improving the energy efficiency, complementary support

for construction works to improve the energy and thermal performance of the

production buildings of enterprises will also be provided once their effect and the

relation to such activities is proven. Support will also be possible for projects in the field

of "blue" growth if proven the demand and the potential for development of "blue"

energy (energy of waves, currents, tides, using the difference between the salt

concentration in the water, etc.). The realized energy savings will result in reduction of

greenhouse gas emissions.

The expected contribution of these supported activities relates to increasing the energy

efficiency of the supported enterprises, which will reduce their production costs,

improve their environmental performance and increase their competitiveness. In turn,

this will have a positive effect not only on the specific enterprises supported, but also on

the entire economy.

Target group – existing enterprises (with the exception of of trade and services

sectors).

The institutional support for sustainable energy development aims at providing the

necessary institutional prerequisites for an integrated approach to energy efficiency and

renewable energy, for example by supporting the capacity building of SEDA to improve

the quality and quantity of services provided to Bulgarian enterprises, as well as

increased opportunities for energy management of enterprises. The support is mainly

aimed at the introduction of the mechanism for trade of ―white‖ certificates elaborated

within the 2007-2013 period project or energy efficiency obligation scheme and the

related activities for the popularization and training of the participants in the process.

The ―tradable white certificates‖ ор energy efficiency obligation scheme are a new

financial mechanism in the EU an are envisaged to support the efforts for the increase of

the energy efficiency by complementing the existing policies and measures and

contributing to the achievement of the energy efficiency objectives.

The expected contribution of this support is improved coordination and synergy of the

measures in the field of energy efficiency.

Types of beneficiaries: existing enterprises (except grant support for trade and services

sectors); Sustainable Energy Development Agency (SEDA).

Territorial scope: throughout the country

UGuiding principles for the selection of operationsU:




in national legislation and the internal ones of the MA;


Стр. 89 от 274








Promoting operations whereby the end result will contribute to improve resource

efficiency and/or to mitigate or abate climate change53

;


Managing Authority to ensure compliance with the principle of sustainable










after project/operation completion;







Specific thematic focus - in the selection of operations with the key importance

will be the ―Energy Strategy of R. Bulgaria‖ till 2020 and National Energy

Efficiency Action Plan 2014-2020;

In accordance with art.3, (3), b of Regulation (EU) 1301/2013 there will be no

support for investments to achieve the reduction of the greenhouse gas emissions

for activities listed in Annex I of Directive 2003/87/EC




Стр. 90 от 274

Table 2-18 Common and programme specific output indicators for the ERDF


Region (where

applicable)

Target value

(2023)

Source of data Frequency of

reporting


receiving support Enterprises ERDF Less developed

regions

719 UMIS 2020

annually


receiving grants Enterprises ERDF Less developed

regions

528 UMIS 2020

annually

3 Energy audits performed Enterprises

ERDF Less developed

regions

662 UMIS 2020

annually

4 Expected energy savings in

enterprises as a result of

completed projects

МWh/y

ERDF Less developed

regions

179,794 UMIS 2020

annually

5 GHG reduction tons CO2 equiv.

ERDF Less developed

regions

55,017 UMIS 2020

annually


Стр. 91 от 274

UPlanned financial support

Type of beneficiary Type of support

Existing enterprises Grants

SEDA Grants

Upon providing any kind of support, the European state aid rules will be complied with


Planned financial instruments

In the implementation of the instrument under this investment priority will be taken into

account both the higher potential for energy savings of the projects implemented by

large enterprises and major difficulties faced by SMEs in access to information and

finance.

According to the National Action Plan for Energy Efficiency 2014-2020, reduction of

energy consumption in the buildings sector is important measure, needed to reduce

greenhouse gas emissions, for this reason the support through the financial instrument

under this investment priority will focus on energy efficiency of industrial buildings and

buildings / premises, used primarily for economic activities. Under this investment

priority will not be suported the energy efficiency of administrative buildings, student

dormitories and residential buildings covered by Operational Programme ―Regions in

Growth‖ 2014 - 2020.

Under this investment priority the following financial instrument is planned:

Debt instrument for energy efficiency measures in enterprises - the support will be

provided through a debt instrument (e.g. First Loss Portfolio Guarantee) providing

investment loans / leases to increase energy efficiency of enterprises. Under the

instrument is envisaged focus on energy efficiency of industrial buildings and buildings

/ premises, used primarily for economic activies including these forming parts of an

industrial system. Under mentioned instrument may be attracted financial resources

from international financial institutions under condition that an interest is expressed

from their side and they offer acceptable conditions for participation in the

implementation of the instrument.

The instrument may be combined with grants for technical support with the aim to

support the enterprises in identification and assessment of investment opportunities

from a technical perspective for the implementation of energy efficiency measures, as

well as for the preparation of bankable energy efficiency projects.

The expected contribution of this support is related with increase of energy efficiency

in supported enterprises, which will result in reduction of the their production costs,

increase of their environmental integrity and enhancing of their competitiveness.

Because of the possible participation of international financial institution, the instrument

may also lead to increase of the capacity of enterprises and of the administrative

capacity for the implementation of energy efficiency measures.

Target group are existing enterprises implementing energy efficiency measures.


Стр. 92 от 274

Types of beneficiaries: fund of funds, financial and credit institutions, other similar

organizations.

Territorial scope: throughout the country.

The instrument described in this priority axis is indicative and it may be supplemented

and /or replaced. This may be undertaken especially during reviewing and updating the

ex-ante assessment according to the provisions of the CPR during the implementation

of any financial instrument which has been implemented based upon such assessment,

where during the implementation phase, the managing authority considers that the ex

ante assessment may no longer accurately represent the market conditions existing at the

time of implementation. (Art. 37 par. 2 "g" of Regulation 1303/2013).

Upon providing any kind of support, the European state aid rules will be complied with


2.3.2. Investment Priority 3.2: Resource Efficiency

In accordance with Thematic Objective 6 "Environmental protection and promotion of

the efficient use of resources" and according to the identified needs at national level

within OPIC 2014-2020, this investment priority provides support for increasing the

resource efficiency of businesses, including a contribution to the criteria in the priority

area "Environment" of the National Strategy for Promotion of SMEs 2014-2020.

Specific Objective 3.2.: Increase the share of SMEs with introduced resource

efficiency measures

UExpected results

This investment priority is aimed at improving resource efficiency and raise awareness

for enterprises in relation to the available opportunities by supporting the activities

related to increased waste recovery and reduced waste generetaion, reduced costs of raw

materials through pilot and demonstration innitiatives. The expected results are directly

related to improving the resource efficiency of the supported enterprises, and hence the

production sectors and the economy as a whole, thus contributing to the implementation

of the respective target by NSPSMEs54

.


No Indicator

Measur

ement

Unit

Category of

region

Baseline

value

Baseline

year

Target

value

(2023)

Source

of data

Frequenc

y of

reporting

1 Share of SMEs

with measures

of resource

% Less

developed

regions

85% 2012 93%55

SBA

Fact

sheets

Every

two

years

54

In NSPSMEs is set at specific target for increase of the share of SMEs with measures of resource

efficiency from 85% to more than 93%.

55 According NSPSMEs: 2020 the share of SMEs with effective use of resources should exceed 93%. Support by IP

2.2 under OPIC 2014-2020 will contribute to the national target set in NSPSMEs.


Стр. 93 от 274

efficiency

UActions to be supported under the investment priority

The support within the investment priority will focus on, but will not be limited to:

support for pilot and demonstration innitiatives to increase the resource

efficiency in enterprises or group of enterprises.

To increase the efficient use of resources in enterprises or group of enterprises

measures will be supported to improve the resource efficiency and sustainable use of

raw materials, incl industrial symbiosis: introduction of high-tech and ICT solutions for

optimizing the production processes and reducing the use of raw materials;

implementation of modern technologies for use of waste as a raw material in new

production and/or other alternative uses; implementation of modern wastefree

technologies, incl. replacement of obsolete and resource-intensive equipment;

implementation of innovative production materials and increasing the use of recycable

materials, incl. investing to adapt the existing equipment to the characteristics of new

products; introduction of turnover cycles for water use in production processes. The

results will be applied to the distribution requirement in order to achieve multiplier

effect and the effect of capitalization (capitalization).

The expected contribution of these activities results in improving the awareness about

the efficient use of resources in the supported SMEs, increasing symbiosis between

enterprises along the value chain, which gradually will improve the efficiency of the

production processes, reduce the cost of their production and increase their

competitiveness, and thus of the overall economy.

Main target groups: SMEs, organizations of SMEs, clusters, industrial zones, LAGs.

Type of beneficiaries: SMEs in the manufacturing industry.

Territorial scope: Measures and activities within this investment priority will be

implemented throughout the country.

Guiding principles for the selection of operationsU:













Стр. 94 от 274

Promoting operations whereby the end result will contribute to improve resource

efficiency and/or mitigate or abate climate change56

;












after project completion;







Specific thematic focus - in the selection of operations with the key importance

will be the ―Energy Strategy of R. Bulgaria‖ till 2020 and NSPSMEs- Priority

axis ‖Environment‖.




Стр. 95 от 274



Region

(where

applicable)

Target

value

(2023)

Data source Frequency of

reporting

1 Implemented pilot

and demonstration

innitiatives

Number ERDF Less

developed

regions

24 UMIS 2020

Annually

2 Number of

enterprises

receiving grants


developed

regions

49 UMIS 2020

Annually

3 Supported projects

related to industrial

waste management

% of the supported

projects under IP

3.2

ERDF Less

developed

regions

18 %

UMIS 2020

Annually


Стр. 96 от 274


Type of beneficiary Type of support:

SMEs Grants


and checks for the absence of double-funding will be carried out.


eligibility rules applicable for the European Social Fund, provided that such costs are

necessary for the proper performance of the operation and are directly linked to it.


of 274


Table 2-21: Performance framework for the implementation of priority axis 3

Priority

Axis

Type of

Indicator Name of Indicator

Measure

ment

unit,

where

appropri

ate

Fund

Categ

ory of

region

Interim value

(2018)

Target value

(2023)54F57

Source of data

Explanation

of relevance

of indicator,

where

appropriate

M W Tot

al

PA 3 Financial Certified expenditure mln.

Euro

ERDF Less

develo

ped

68,416,590 310,686,632 UMIS 2020

Applicable

for the whole

axis

PA 3 Output Number of enterprises receiving

grants (IP 3.1)

Enterpris

es

ERDF Less

develo

ped

185 528 UMIS 2020

Applicable

for the whole

axis

Additional information on the implementation framework:


programming period 2007-2013

57 Target values must be represented in total (M + W) or broken down by gender.


98








Fund ERDF



3 003 Productive investment in

large enterprises linked to the

low-carbon economy

44,200,000

3 068 Energy efficiency and

demonstration projects in

SMEs and supporting

measures

183,647,006

3 069 Support to

environmentally-friendly

production processes and

resource efficiency in SMEs

31,136,631







initiatives

5,100,000


Fund ERDF






equivalent

34,000,000

58




99


Fund ERDF





Fund ERDF





100

Justification of Priority Axis 4

Bulgaria supports the efforts of the European Commission to develop a common energy

policy of the European Union, taking into account global challenges and national

specificities. The main priorities of the Bulgarian energy policy are aimed at ensuring

energy security, diversification of sources and routes, energy efficiency, liberalized

energy market and protection of consumers‘ rights.

2.4.1. Investment priority 4.1: Improving energy efficiency and security of supply

through the development of smart energy transmission systems

Modernization and expansion of energy infrastructure is a prerequisite for enhancing

energy security and optimization of the energy mix in the transition to a low carbon

economy. An important point in this regard is the inclusion of 11 projects (out of 248)

with the participation of Bulgaria, out of which 4 in the field of electricity and 7 in the

field of natural gas, in the first list of Projects of Common Interest (PCIs) of the EU.

Some of the projects are of special importance for the security of the energy supplies

not only for Bulgaria but also for the region and the EU. The most important of them are

the projects for interconnections with the neighbouring gas systems (Greece, Turkey,

Serbia and Romania) and South Stream.

Specific objective 4.1.: Better interconnectivity with neighbouring gas transmission systems

Expected results

To meet the EU N-1 infrastructure standard Bulgaria will have to develop

interconnections with the neighbouring countries. The gas interconnector with Serbia

will contribute to increasing the value of the standard (in %) and reaching the required

100%.

In the event of disruption of the single largest gas infrastructure, the capacity of the

remaining infrastructure should be able to supply the required volume of gas to satisfy

total gas demand in the calculated area for a day of exceptionally high gas demand

occurring with a statistical probability of once in 20 years, i.e. N-1>100%.

The interconnector with Serbia, when constructed and put into operation, will contribute

to increase of the infrastructure standard by 23% in 2017, respectively by 20% in 2022

(presumably the same per cent in 2023) as it will have the capacity to transport 4.9

million cubic meters of gas per day in the direction form Serbia to Bulgaria, which

represents respectively 23% and 20% of projected total gas demand in the country for a

day of exceptionally high gas demand (21.7 million cubic meters per day in 2017 and

24.9 million cubic meters per day in 2022).

Table 2- 26: Programme-specific result indicators for ERDF

N

o Indicator

Measurem

ent unit

Category of

region

Baseline

value

Baselin

e year

Target

value

(2023)

Source

of data

Frequenc

y of

reporting

2.4. Priority Axis 4 – Removing bottlenecks in security of gas supplies


101

1 N – 1 standard

for

infrastructure59

% Bulgaria 40,6% 2014 >100%

Contributi

on of IBS

20%

Prevent

ive

Action

Plan

Every

two years


Construction of the section on Bulgarian territory of the gas interconnector between

Bulgaria and Serbia - Phase 2 of "Construction of Gas Interconnection Bulgaria-Serbia"

project. Preparatory activities under the project, all research and design are included in

the current OP ―Development of the Competitiveness of the Bulgarian Economy 2007-

2013‖, as Phase 1. All other activities related to land acquisition procedures,

construction, supervision and audit with the aim to implement the project will be co-

funded under the OPIC 2014-2020.

The expected contribution of this action is reliability and flexibility of gas supplies

supporting the main priorities of the Energy Strategy of Republic of Bulgaria till 2020

and meeting the EU N-1 infrastructure standard.

The target group are the natural gas consumers, incl. enterprises throughout the

country.

Types of Beneficiaries: Ministry of Energy


Guiding principles for the selection of operations:

In the selection of operations within the investment priority, the following leading

principles should be followed:













59

The N – 1 formula describes the ability of the technical capacity of the gas infrastructure to satisfy total

gas demand in the calculated area in the event of disruption of the single largest gas infrastructure during

a day of exceptionally high gas demand occurring with a statistical probability of once in 20 years -

Regulation (EU) 994/2010.


102









after project completion;




Specific thematic focus - in the selection of operations with key importance will

be projects of energy's common interest.


103

Table 2- 27 Common and programme specific output indicators for the ERDF

ID Indicator Unit Fund Category of Region

(where relevant)

Target value (2023) Source of data Frequency of reporting

М F Total

1 Gas Interconnection Bulgaria-

Serbia built

km ERDF Less developed

regions

61.1 UMIS 2020

Twice in the course of

implementation


Type of beneficiary Type of support:

МЕ Grant

When providing any kind of support, the European state aid rules will be complied with and checks for the absence of double-funding will be

carried out.

Planned financial instruments

No financial instruments are planned.


104


Table 2-28: Performance framework of the PA 4

ID Indicator Name of Indicator Measurement

unit

Fund Category of

region

Milestone for

(2018)

Final target (2023)51F Source of data Explanation of

relevance of

indicator, where

appropriate М F Total

PA 4 Financial Certified

expenditure

EUR ERDF Less

developed

22,500,000 45,000,000 UMIS 2020

Applicable for

the whole axis

PA 4 Output Gas Interconnection

Bulgaria-Serbia

built

km ERDF Less

developed

regions

41 61.1 UMIS 2020

Applicable for

the whole axis

Additional information on the performance framework:

Interim values of the financial indicator and the output indicator are set taking into consideration the implementation of the project on the territory of

Serbia, as start of construction on Serbian territory is a precondition for start of construction on Bulgarian territory.


105

Categories of intervention (by priority axis)

(Reference: points (c)(v) of the first subparagraph of Article 96(2) of Regulation (EU)

No 1303/2013)

Corresponding categories of intervention based on a nomenclature adopted by the

Commission, and an indicative breakdown of Union support

Tables 2- 29, 2-30, 2- 31, 2- 32: Categories of intervention60

Table 2-29: Dimension 1 – Intervention field

Fund ERDF


Priority Axis Code Amount (EUR)

4 008 Natural gas (TEN-E) 38,250,000


Fund ERDF





Fund ERDF





Fund ERDF




60


performance reserve)


106

During 2007-2013 programming period Priority Axis 5 Technical Assistance of the

Operational Programme ―Development of the Competitiveness of the Bulgarian

Economy 2007-2013‖ supported the management, implementation, monitoring and

control of the programme activities, as well as the work of the Monitoring Committee,

including by carrying out studies and surveys for the needs of the evaluation of the OP

and promotional campaigns to ensure transparency and awareness. The Priority Axis

covered the following areas of intervention:

Area of intervention 5.1. Support for the management, implementation,

monitoring and evaluation of the OP;

Area of intervention 5.2. Other activities for the implementation of the OP.

During the programming period 2014-2020 the Priority Axis will provide even more

targeted support for the successful management of interventions under the OP and will

continue building on the capacity of the MA and the beneficiaries. The implementation

of this support will be streamlined through measures to achieve the following specific

objectives:

1. Support for effective and efficient implementation of actions related to the

programming, management, monitoring, evaluation and control of OPIC in accordance

with the current legislation and existing best practices;

2. Provision of adequate and timely information and raising the public awareness of

funding opportunities under OPIC and the criteria, rules and procedures for participation

in its implementation;

3. Strengthening the capacity of the beneficiaries of OPIC for participation in the

programme implementation and better use of its financial resources.

– SPECIFIC OBJECTIVE 5.1.: Support for effective and efficient

implementation of actions related to the programming, management,

monitoring, evaluation and control of OPIC in accordance with the current

legislation and existing best practices

A major challenge will be to maintain and further strengthen the capacity of the MA

given the need for parallel management, by 2015, of the OPDCBE 2007-2013 and the

follow-up responsibilities related to the programme closure on the one hand, and the

need for launching the implementation of the OPIC 2014-2020 as early as possible, on

the other. The activities related to the closure of the current programme are significant

and time-consuming and Bulgaria has no relevant experience dating before the 2007-

2013 period. This necessitates continued investment in the human resources of the

system. Some further strengthening of the qualification and motivation of MA staff will

be required, as well as seeking for sustainability and stability of the structures and the

developed capacity, including though measures for reducing the turnover of human

resources.

2.5. Priority Axis 5 – Technical Assistance


107

In the period 2007-2013 certain weaknesses in public procurement and state aids at

national level were identified, which will also have an effect on OPIC 2014-2020 and

will require technical assistance funds. The gaps identified in the capacity for

programme monitoring and evaluation in the current period in turn resulted in a delay of

the necessary re-programming actions. In the period 2014-2020 similar processes would

cause a loss of implementation reserves, i.e. an actual reduction of the planned funding

outside the n+3 rule. Another closely linked element is the completion of a reliable

framework for feeding statistical information under set indicators and ensuring the

integrity of the system of indicators, including clear sources of information and methods

of calculation, valuation etc. In the new period it will also be necessary to support

actions arising from the ex-ante conditionalities.

In order for technical assistance to be able to adequately meet the changing needs of the

MA and the Monitoring Committee in accordance with new challenges and

requirements, it has been foreseen to apply a more flexible approach to the planning of

actions over the previous programming period. The indicative types of actions include:

Actions to be supported and their expected contribution to the specific objectives:

Actions for management, completion and post evaluation of OPDCBE 2007-

2013 according to the requirement of art. 59 of the General regulation for ESIF;

Logistic and technical support of the functioning of the Monitoring Committee;

General and specialised training for MA staff, including development and

sustaining capacity in the field of state aid (workshops, seminars, exchange of

best practices and experience etc.) as well as trainings for staff from the common

MEE administration, supporting the functioning of the MA;

Financing basic and additional remuneration for MA staff (incl. wage costs,

health and social payments and all other related costs according to the Bulgarian

legislation);

Perfoming evaluations during the programming period, incl. preparation and

execution of plan for evaluation and post evaluation of the OP ;

Provision and implementation of technical support, consultancy, research,

analyses and studies for proper programming, management, monitoring,

evaluation and control of OPIC;

Support for the process of evaluation and selection of projects (organisation of

evaluating committees, database of independent experts having appropriate

technical expertise, contracting of experts etc.), independent evaluation of

projects;

Support for ongoing monitoring, financial control and audit, as well as risk

assessment, anti-fraud/irregularities/corruption measures;

Delivery/rent, repair, maintenance and insurance of movable and immovable

property used by the MA (incl. premises, furniture, equipment, cars, etc.);

Business trips of MA staff and other persons, participating in the management of

the OP;

Delivery, elaboration and maintenance of computerised information system

(hardware and software) for the needs of the MA;


108

Support for costs for activities of OP‘s completion (closure);

Support for preparation of the next programming period

Other activities related to the resource and technical support of the OP

implementation.

UExpected results

The implementation of the activities will ensure an effective, efficient and proper

management of the OP in accordance with the principle of sound financial management

and the regulations of the European and national legislation. Performance will be

ensured by the good structuring and organisation of the work of the programme MA and

its regional units (including risk assessment system) and the high qualifications,

motivation and commitment of staff on the one hand, and by the proper functioning of

the programme Monitoring Committee on the other.

SPECIFIC OBJECTIVE 5.2.: Supporting the Managing Authority for provision

of adequate and timely information and raising the public awareness of funding

opportunities under OPIC and the criteria, rules and procedures for participation

in its implementation

The so far conducted studies have shown that the potential beneficiaries need more

targeted and timely information about the practical aspects of using EU funds in

Bulgaria, more specifically about application procedures, funding opportunities, project

preparation and other similar issues concerning the programme specifics. Special

attention should be paid to the conclusions of the studies conducted under Priority Axis

5 of the OPDCBE in the period 2007-2013. According to a recent study55F

61, the

continuous communication efforts of the MA of OPDCBE in 2012 have led to

significant positive results: compared to all other operational programmes, the

OPDCBE has experienced the greatest growth in recognition among the general public

in the past year – 16%, i.e. information and awareness raising activities have covered a

further 340,000 people. Yet, the level of awareness of particular programme aspects

among the population, remains low. There is a clear profiling of informational needs,

based on which three main groups can be defined: with general interest in the

Programme, companies with project ideas, groups of companies (or consortia thereof) in

actual interaction with the Programme (including beneficiaries with completed

projects). The degree of programme commitment should be taken into account, as well

as the content of the selected information, in order to achieve a higher level of

communication efficiency.

There is an increase in the estimates of the institutions associated with the management

of the OP. Data suggest that there has been a significant positive change in the

interaction between the administration and beneficiaries. The most probable reason for

that could be the closure of the Intermediate Body, simplification of communication,

shortening response times and reduced document flows. Estimates are even higher

among beneficiaries with ongoing or completed projects. This indicates that much of the

negative attitude is a reflection of the overall mistrust of institutions rather than some

form of critic of the MEE and DG European Funds for Competitiveness in particular.

What is needed is additional communication directly related to management

61

The study was carried out by ESTAT OOD in 2013


109

mechanisms, so as to create an impression of transparency of operations and explain

that, in fact, both parties work towards the same common goal – to improve the

condition of the business in Bulgaria and hence the general standard of the population.

Despite the registered increase in the interest in the internet website of the OP among

the general public, the visitors share – 10.7% of the population (approx. 673,000 people,

compared to approx. 267,000 people by 2012) is rather low. This not only suggests a

need for greater integration of this channel of communication in information and

awareness raising processes, but also a need for joint action and involvement of actual

and potential beneficiaries.

The outlook for the next programming period is rather positive. The proportion of

companies having declared an intention to submit projects in the period 2014-2020 is

52%, accordingly 80% among ICT and other organisations, of those aware of the

OPDCBE 2007-2013. There is a growing confidence in Euro-funding opportunities

among businesses, as well as overcoming initial fears.

Regrding OPIC 2014-2020, the potential beneficiaries have specific requirements

concerning simplification of procedures, support to the business to secure the necessary

co-financing, and prospect for development in the form of focus on sectors of potential.

Fulfilling those requirements would result in increasing the number of candidates and

successfully completed projects.

Most likely to apply subject to fulfillment of the above conditions are companies that

are currently in interaction with the Programme in one way or another. As regards

communication, this means that in the next period one of the main target groups of the

OP should be organisations that have in some way been involved in the OPDCBI,

regardless of whether they have actually implemented a project or have just applied and

been turned down.


Organisation of public and promotional events – promotional campaigns,

seminars, round tables, conferences, exhibitions, presentations, seminars to

promote public support and responsibility for the proposed investment;

Distribution of documentation, information and materials, related to the

implementation of OPIC;

Update and maintenance of an internet website as a key communication channel;

Participation in programmes, preparation and distribution of promotional films

and videos, commercials and other media events;

Publications, bulletins, brochures, banners, manuals etc.;

Analyses and opinion polls – focus groups, surveys, sociological studies etc.

UExpected results

The implementation of the activities will ensure transparency of OPIC implementation

and its promotion among the widest stakeholder range, physical persons and legal

entities alike. Opportunities will be created for raising public awareness of the ERDF

(as well as of funding from the state budget and other sources of funding, including

multifund investments IFIs, EU programmes such as Horizon 2020, COSME etc.) and

OPIC in the period 2014-2020, attracting public interest, stimulating project

participation, explaining the opportunities and benefits of participation in the


110

Programme and complementary financial resources, ensuring equality and transparency

in its implementation.

Efforts to promote the Competitiveness OP in the period 2007-2013 have significantly

improved the visibility of the OP among the general public. The national promotional

campaigns can be considered successful and of significant use to the participants.

Events, however, tended to attract mainly companies that have a specific intention to

participate, as well as certain project experience. Therefore the coverage of such events

should be expanded. At the same time, since greater awareness is more often than not

concomitant with greater criticism, special attention should be paid to the selection of

the content and the form of promotional events.

– SPECIFIC OBJECTIVE 5.3.: Strengthening the capacity of the beneficiaries

of OPIC for participation in the programme implementation and better

(quantitative and qualitative) use of its financial resources

According to an analysis of the OPDCBE of March 2014, a large part of beneficiaries

mention serious problems in the preparation and implementation of projects. At the

present moment, the end of the programming period, beneficiaries are still unable to

prepare and manage projects on their own and often resort to consulting services. On the

one hand, this indicates a need to further reduce the administrative burden of the OP

and, on the other, the substantial experience gained by the consulting sector in Bulgaria.

In this regard, another indicator of beneficiaries‘ capacity is the fact that only 13% of all

completed grant contracts have finished within the established timeframes. The data are

indicative enough to conclude that the beneficiaries still lack the capacity to plan and

implement projects within set periods.

In view of the current experience of the MA in planning and support provision to

develop the capacity of beneficiaries in the period 2007-2013, the following main

challenges can be identified:

1) Achieve a balance between the supply and demand, i.e. address the specific needs of

both current and potential beneficiaries. A key prerequisite for this will be the

preliminary preparation, study and systematisation of needs and most of all

expectations.

2) Identify, take into account and make targeted efforts to minimise ―typical‖ mistakes,

irregularities, faults and gaps admitted by beneficiaries both at the stage of the

preparation of the project and during the implementation and reporting. An important

guiding principle will be to approach ―typical‖ mistakes in a systematic manner, initiate

and maintain proper and regular external communication and internal coordination

within the MA to standardise the methods of operation, fully unify the approach in case

of precedents, and answer enquiries and requests for clarification in a straightforward

and understandable manner.

3) Consider the specific actual needs and capacities of the different groups of

beneficiaries (micro-enterprises, small and medium-sized enterprises, large enterprises,

institutional beneficiaries) and key partners (other MAs, public institutions, business

organisations etc.), and, where applicable, even take sectoral specifics into account.

Streamlining the OP and shifting the focus to performance will require a strictly

differentiated approach. There is a need to support actions to address the difficulties of

the different groups of OPIC beneficiaries in prioritising their needs, as well as during

the identification, justification, preparation and implementation of projects.


111


Organisation and implementation of trainings in support of the capacity of the

candidates and beneficiaries in order to facilitate the implementation of OPIC

incl identifying, adaptation and implementation of good practices from other EU

member-states, joint initiatives and models.;

Preparation and implementation of evaluations, analyses and action plans to

strengthen the administrative capacity of OPIC applicants /beneficiaries;

Analysis of the needs and expectations of different groups of applicants /

beneficiaries of OPIC in order to better focusing of the Programme on the

difficulties and challenges which they are facing.

UExpected results

Developing beneficiaries‘ capacity will contribute to making significant progress in

terms of resource absorption and, last but not least, attaining OPIC objectives.

Table 2-39: Programme-specific result indicators (by specific objective)

ID Indicator Measurement

unit

Baseline

value

Baseline

year

Target

value

(2023)*

Source

of data

Frequency of

reporting

TO1 Average time

for a project

approval

(between

submission of a

project‘s

application and

signing of a

contract

days 215 2007-2013 183 UMIS Every two

years

TO1 Average time

required to pay

the beneficiary

from the

submission date

of the

reimbursement

application;

Days 112 2007-2013 90 UMIS Every two years

TO2 Degree of

public

awareness of

OPIC, overall

and with regard

to the particular

procedures

% 41.662

2013 51 % Survey Four times for

period of

implementation

of OPIC

TO3 Terminated

contracts

% 16.81% 2007-2013 13% UMIS Every two years

62

According ot data firom the Evaluation report on implementation of the 2013 Communication Plan of

OPC, performed by ESTAT


112

ID Indicator Measurement

unit

Baseline

value

Baseline

year

Target

value

(2023)*

Source

of data

Frequency of

reporting

TO3 Level of

satisfaction of

OPIC

beneficiaries

with training

and technical

support

% 41.8 2013 75% Survey Four times for

period of

implementation

of OPIC

*Target values may be qualitative or quantitative

Table 2-40: Output indicators ERDF (by priority axis)

ID Indicator Measurement unit Target value

(2023)*

Source of data

1 MA staff, including in regional

offices, having received training

Number 250 Annual reports

2 Trained beneficiaries/applicants Number 1500 Annual reports

3 Analyses, studies and other

consultancy support


4 Promotional campaigns and

public events held


5 Monitoring Committee meetings

held


6 Internal and external evaluations

performed


7 Number of on the spot

verifications

Number 6 150 Annual reports

8 Number of employees (Full-time

equivalents, FTEs) whose salaries

are co-financed by technical

assistance.


* Target values for output indicators under technical assistance are optional

Categories of intervention (by priority axis)

Reference: points (c)(v) of the first subparagraph of Article 96(2) of Regulation (EU)

No 1303/2013)

Corresponding categories of intervention based on a nomenclature adopted by the

Commission, and an indicative breakdown of Union support


113

Tables 2-41, 2-42, 2-43: Categories of intervention63

Table 2-41: Dimension 1 – Intervention field

Category of region: Less developed


5 121 Preparation,

implementation, monitoring

and inspection

30,109,426

5 122 Evaluation and studies 1,771,714

5 123 Information and

communication

3,542,348









63




114

3. FINANCIAL PLAN OPIC 2014-2020

Table 3-1. Financial plan of the Operational Programme giving the annual commitment of the European Regional Development Fund

(ERDF) in the Operational Programme (Euro) per category of regions *

Fund Category of

region

2014 2015 2016 2017 2018 2019 2020 Total

Main

allocation

Perfor

mance

reserve

Main

allocatio

n

Perfor

mance

reserve

Main

allocatio

n

Perfor

mance

reserve

Main

allocatio

n

Performa

nce

reserve

Main

allocatio

n

Performa

nce

reserve

Main

allocatio

n

Performa

nce

reserve

Main

allocatio

n

Performa

nce

reserve

Main

allocation

Performa

nce

reserve

ERDF Less

developed

regions

138 173 101 8 819 560 145 250 508 9 271 309 152 997 456 9 765 795 159 359 742 10 171 898 165 607 234 10 570 674 171 706 601 10 959 996 177 623 943 11 337 699 1 110 718 585 70 896 931

Total 138 173 101 8 819 560 145 250 508 9 271 309 152 997 456 9 765 795 159 359 742 10 171 898 165 607 234 10 570 674 171 706 601 10 959 996 177 623 943 11 337 699 1 110 718 585 70 896 931


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Table 3-2 Financial plan of the Operational Programme, showing the amount of the total financial allocation of each fund in the

Operational Programme, national funding and co-financing by priority axis for the whole programming period (EUR)

Financing plan

Priorit

y axis

Fund Category

of region

Basis

for

calcula

tion of

Union

suppor

t

(Total

eligible

cost or

public

eligible

cost)

Union

suppor

t

National

counterpart

Indicative breakdown

of national counterpart

Total funding Co-

financi

ng rate

For

inform

ation

EIB

contrib

utions

Main allocation (total

funding less performance

reserve)

Performance reserve Perform

ance

reserve

amount

as

proporti

on of

total

Union

support

National

public

funding

Nation

al

private

fundin

g

Union

support

National

counterpart

Union support National counterpart

(a)

(c) (d)

(g)

(j)

PA 1 ERDF Less

developed

Public

costs 250,990,16

9 44,292,383 44,292,383 - 295,282,552 85.00% - 235,465,343 41,552,708 15,524,826 2,739,675 6.185%

PA 2 ERDF Less

developed

Public

costs 592,868,24

2 104,623,808 104,623,808 - 697,492,050 85.00% - 556,196,779 98,152,373 36,671,463 6,471,435 6.185%

PA 3 ERDF Less

developed

Public

costs 264,083,63

7 46,602,995 46,602,995 - 310,686,632 85.00% - 247,748,923 43,720,398 16,334,714 2,882,597 6.185%

PA 4 ERDF Less

developed

Public

costs 38,250,000 6,750,000 6,750,000 - 45,000,000 85.00% - 35,884,072 6,332,483 2,365,928 417,517 6.185%

PA 5 ERDF Less developed

Public costs 35,423,468 6,251,201 6,251,201 - 41,674,669 85.00% - 35,423,468 6,251,201 - -

Total ERDF Less developed

1,181,615,5

16 208,520,385 208,520,385

1,390,135,903 85.00%

1,110,718,585 196,009,162 70,896,931 12,511,224 6.000%


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Table 3-3 Breakdown of the financial plan by priority axis, fund, category of region and thematic objective for the ERDF, the ESF and

the Cohesion Fund (Table 18b 19) (Art. 87 (d) (ii) of the General Regulation) (EUR)

Priority axis Fund Category of region Thematic objective Union support National counterpart Total funding

PA 1: Technological development

and innovation

ERDF Less developed TO 1 Strengthening research,

technological development and

innovations

250,990,169 44,292,383 295,282,552

PA 2: Entrepreneurship and

capacity for growth

ERDF Less developed TO 3 Enhancing the

competitiveness of SMEs 592,868,242 104,623,808 697,492,050

PA 3: Energy and resource

efficiency

ERDF Less developed TO 4 Supporting the shift towards a

low carbon economy in all sectors 232,947,006 41,108,295 274,055,301

ERDF Less developed TO 6 Preserving and protecting the

environment and promoting

resource efficiency

31,136,631 5,494,700 36,631,331

PA4: Removing bottlenecks in

security of gas supplies

ERDF Less developed TO 7. Promoting sustainable

transport and removing bottlenecks

in key network infrastructures

38,250,000 6,750,000 45,000,000

PA 5: Technical Assistance ERDF Less developed NA 35,423,468 6,251,201 41,674,669

TOTAL 1,181,615,516 208,520,387 1,390,135,903

Note: The guidelines for the integration of environmental policy and policy on climate change in the funds for Cohesion Policy, the Common

Agricultural Policy and the Common Fisheries Policy for the period 2014-2020 provide for each programme to be identified adequate number of

objectives oriented to fulfillment of the requirements for the integration of environmental policy and policy on climate change in five ESIF,

ensuring that they contain the necessary quantitative indicators, which measure the subsequent progress. According to the methodology by codes

for determining the amount of funds in support of the objectives related to climate change, OPIC calculated 15%.


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4. INTEGRATED APPROACH TO TERRITORIAL DEVELOPMENT

In coordination and compliance with the Partnership Agreement OPIC 2014-2020 will

contribute to the implementation of the integrated territorial development. Through their

use OPIC 2014-2020 will aim to achieve a competitive and sustainable economy in

territories in which, according to the PA, there is a need to address bottlenecks, as well

as development needs related to creating sustainable employment, increasing the

income of the local population, and using the local potential for growth.

The application of the integrated approach to territorial development will support

targeted development, i.e. development that is to a maximum degree consistent with the

specific local needs and possibilities for growth and sustainable investment of OPIC

resources, in accordance with the principles of complementarity, concentration,

effectiveness and efficiency of resources. This approach will provide a better access to

funding opportunities for local businesses and contribute to the promotion of

partnerships and the development of multi level governance.

In line with PA, for the period 2014-2020 Bulgaria will implement the following

instruments for integrated territorial development to address territorial challenges:

Community-Led Local Development (CLLD), including CLLD with multi-

funding approach;

Investment to promote sustainable urban development on the basis of integrated

plans for urban regeneration and development;

European territorial cooperation, including under the Danube Strategy.

The contribution of OPIC 2014-2020 to the implementation of the above listed

instruments will be consistent with the thematic objectives as well as the priorities,

objectives and performance indicators of the OPon one hand and the specific features of

the identified territories on the other for achieving successful smart, sustainable and

inclusive growth

UCommunity-led local development

In line with the PA, the designation of territories for targeted support through the CLLD

instrument is based on geographic characteristics and identified socio-economic

disbalances and include:

Territories at risk (demographic, economic, environmental risks) with

progressive decrease of population and unrealised economic potential;

Mountainous, border and rural territories;

Territories for conservation of landscape, natural and cultural values;

Black Sea and Danube coastal areas.

The CLLD will be implemented using the ―bottom-up‖ approach based on local

strategies for integrated development to be elaborated by 31 December at latest 2017.

OPIC 2014-2020 envisages support to the implementation of these strategies through:

Participation of representatives of the MA in the committee evaluating local

development strategies submitted by the Local Action Groups (LAG);

financing projects within the approved local development strategies that

are prepared in accordance with the specifics of the particular territory


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and in line with the priorities and objectives of OPIC 2014-2020 and

have set priorities, objectives and measures for implementation in the

following areas:Promoting innovation development and

commercialization (Thematic Objective 1);

Enhancing the competitiveness of local economies and the opportunities

for local business start-ups, including through diversification and

alternative activities (Thematic objective 3);

The expected results from the support under the CLLD instrumentat local levelare:

Transfer of knowledge and technologies at local level through investments to

enhance SMEs‘ capacity for market development, labour productivity and

reduction of energy and resource intensity of production in these areas;

Promotion of innovation activity, development and introductionof innovations

inthese areas and stimulating private investments in research and innovation;

Improving access to funding for SMEs and promoting the creation of new

enterprises to provide opportunities for local employment and increased

incomes.

In line with the Partnership Agreement OPIC 2014-2020 will contribute up to 5% of its

budget to multi-funding under the CLLD instrument.

The full implementation of the CLLD instrument will be laid out in a dedicated

regulatory act, that is to be adopted within three months after the approval of the

Partnership Agreement. Projects within the local development strategies that OPIC

2014 - 2020 will finance shall be implemented according to the rules and procedures for

implementation of the OP.

USustainable urban development

OPIC 2014-2020 will seek opportunities to complement actions in the designated

economic impact zones, based on developed and approved Integrated plans for urban

regenerationand development (IPURD) in urban areas out of the scope of the definition

for rural areas.

UIntegrated territorial investment

Currently the application of the approach for integrated territorial investment under

Regulation 1303/2013 is not envisaged.

Nevertheless, in line with the PA territorial approach for targeted support of North-West

Region (Severozapaden raion) is envisaged. The approach will be based on the strategy

for targeted support of the NWR. The focus will be on using the local potential taking

into account the main challenges and problems in the region.

The investment priorities that will be supported by OPIC give opportunities for

interventions leading to decreasing the intensity of economic problems and combating

unfavourable demographic tendencies in the region. More specifically the interventions

will be within the scope of OPIC priorities focusing on development and increasing

SME competitiveness by stimulating innovation activity, creating opportunities for local

business start-ups, supporting energy and resource efficiency measures. Based on the

defined priorities in the strategy for targeted support of NWR, OPIC will support project

either by designing a separate grant procedure for the NWR region or by giving priority


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to projects from this region in the more general grant procedures covering all the

regions.

UInterregional and transnational actions

In line with the PA, in the period 2014-2020 OPIC will cover the following priority

areas for territorial cooperation:

Promotion of entrepreneurship, overcoming structural problems and enhancing

competitiveness by entrepreneurship promotion – new technologies and business

models to stimulate innovation, networking between research and technological

centres in the business sector, cooperation in support of SMEs and human

capital;

Preservation of natural and cultural heritage, especially in connection with

―green‖ growth economy and sustainable tourism;

Development of joint plans, coordinated investment, operations and systems for

resource efficiency, promotion of adaptation to climate change and risk

prevention and management.

The interventions to be supported by OPIC 2014-2020 under the goals ―Investment for

growth and jobs‖ and ―European territorial cooperation‖ will be programmed and

implemented in a manner so as to ensure their synergy and complementarity.

UMacro-regional and sea-basin strategies

OPIC 2014-2020 will seek opportunities for complementary operations for the

implementation of the EU macro-regional strategy for development of the Danube

Region. The relevant priorities for cooperation between OPIC 2014-2020 and the

Danube strategy are:

Encouraging more sustainable energy (Priority Axis 2);

Developing the Knowledge Society (research, education and ICT) (Priority Axis

7);

Supporting the competitiveness of enterprises (Priority Axis 8).

Two of Bulgaria‘s NUTS II regions – Severoiztochen and Yugoiztochen – fall within

the territorial scope of the Black Sea Basin Joint Operational Programme. The

Programme will be synergistic with the EU Blue Growth Strategy and the Convention

on the Protection of the Black Sea from Pollution (Bucharest Convention).

Bulgaria, and in particular OPIC 2014-2020, attributes importance to the

implementation of the objectives of the Integrated Maritime Policy and EU‘s Blue

Growth Strategy. Being a Black Sea and a Danube country, Bulgaria has certain

potential to implement ―blue‖ policies and it is OPIC‘s strategy to support such policies

in areas of applicable investment priorities. Moreover, the MEE takes part in the

specially established coordination mechanism under the MTITC. A special joint inter-

departmental working group for integrated maritime policy has been set up to bring

together all players in the process of planning and implementation of blue policies.


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5. SPECIFIC NEEDS OF GEOGRAPHICAL AREAS MOST AFFECTED BY POVERTY OR

TARGET GROUPS AT HIGHEST RISK OF DISCRIMINATION OR SOCIAL

EXCLUSION

As an element of the integrated approach the Partnership Agreement envisages

addressing the specific needs of geographical areas most affected by poverty or at

highest risk of social exclusion.

OPIC 2014-2020 will contribute to addressing the identified problems indirectly

through:

Support for creation of new enterprises and development of existing ones to

provide sustainable jobs, including for economically inactive and long-term

unemployed persons;

Implementation of measures leading to increased income of the population and

improved quality of life;

Implementation of the equality principle in the selection of operations –

promoting equality for all, including accessibility for people with disabilities,

and observance of the principle of accessibility (prevention of any

discrimination on the basis of disability);

Support for implementation of integrated local development strategies under the

CLLD tool and the strategy of targeted support for Severozapaden Region.

6. SPECIFIC NEEDS OF GEOGRAPHICAL AREAS WHICH SUFFER FROM SEVERE

AND PERMANENT NATURAL OR DEMOGRAPHIC HANDICAPS

In line with the Partnership Agreement, targeted support will be provided for two types

of areas:

Areas which suffer from extremely negative demographic trends (depopulation

and ageing);

Areas which suffer from severe natural handicaps and difficult accessibility (in

particular mountainous areas).

OPIC contributions in such areas will be through support for measures and operations

arising from the integrated local development strategies under the CLLD tool and the

strategy of targeted support for Severozapaden Region.


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7. AUTHORITIES AND BODIES RESPONSIBLE FOR MANAGEMENT, CONTROL AND

AUDIT AND THE ROLE OF THE RELEVANT PARTNERS

7.1. The authorities and bodies responsible for management, control and audit.

Table 7-1: Identification and contact details of the relevant competent

authorities/bodies

Authority/body Name of authority/body and

department or unit

Head of authority/body

(position or post)

Managing Authority Directorate-General European

Funds for Competitiveness (DG

EFC), ME

Minister of Economy

Certifying Authority

(if applicable)

National Fund Directorate,

Ministry of Finance

Director of National Fund

Directorate, MF

Audit Authority Executive Agency Audit of EU

Funds (EA AEUF)

Executive Director of EA

AEUF

Body to whom

payments will be made

by the Commission

National Fund Directorate,

Ministry of Finance

Director of National Fund

Directorate, MF

In line with the principle of shared management, the Member State and the Commission

will be responsible for the management and control of the operational programmes. The

Member State will take the lead role in the process concerning the implementation and

control of operational programmes through management and control systems. To

enhance the effectiveness of the control on the selection and implementation of

operations and the functioning of management and control systems, the functions and

rules of procedure of the MA will be laid out in detail by the MA of the OP in

accordance with the regulations of the EC for the period 2014-2020.

The MA will have primary responsibility for the effective and efficient implementation

of OPIC and will thus perform a number of functions related to the preparation,

management and monitoring of the OPIC, financial management and control, selection

of operations and implementation of promotion and publicity measures for the OP in

line with the relevant requirements and regulations of the EC. In accordance with

Decision Nr. 328 dated 25th April 2012 of the Council of Ministers and the Rules of

Organisation of the Ministry of Economy and Energy, the functions of Managing

Authority of the Operational Programme ―Innovation and Competitiveness‖ in the

period 2014-2020 will be performed by Directorate-General European Funds for

Competitiveness (DG EFC) at the MEE.

The Monitoring Committee will monitor the implementation of the OP. The functions

and procedural rules of operation will be prepared by the MA of the OP in accordance

with the Common Provisions Regulation on CSF funds in the period 2014-2020. The

MA will also act as Secretariat.

The Certifying Authority will be responsible for preparing and submitting to the EC

certified statements of expenditure and claims for payment. The National Fund


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Directorate at the Ministry of Finance will act as Certifying Authority for OPIC 2014-

2020.

The Audit Authority will be responsible for ensuring that audit is carried out to verify

the efficient functioning of the management and control system of the Operational

Programme. The Executive Agency Audit of EU Funds will act as Audit Authority for

OPIC 2014-2020.

7.2. Involvement of relevant partners

Actions taken to involve the relevant partners in the preparation of the operational

programme and the role of those partners in the implementation, monitoring and

evaluation of the programme

Preparation of the operational program

By Decision № 328/25.04.2012 of the Council of Ministers, the Ministry of Economy

and Energy is defined as the leading institution for the development of new operational

program in innovation and entrepreneurship.

According to Article 32 , Paragraph 1, Item 5 of the Rules of MEE, General Directorate

"European Funds for Competitiveness" (DG "EFC") is responsible for the preparation of

the operational program for the programming period 2014-2020, and the accompanying

documents . According to Art. 32, paragraph 1, item 6 the Directorate coordinates the

work of the Thematic Working Group (TWG) for the preparation of the operational

program and serve as the secretariat to it under existing regulations. Thus in the

development of Operational Programme for ―Innovation and Competitiveness‖ 2014-

2020 the past experience of the department in development, management and

implementation of Operational Programme ―Development of the Competitiveness of

Bulgarian Economy 2007-2013"is used, in its capacity of Managing Authority.

The main coordinating body at the national level, responsible for the development and

negotiation of the Partnership Agreement and the operational programs for the

programming period 2014-2020 is Central Coordination Unit (CCU) in the

administration of the Council of Ministers.

The new OP Competitiveness and Innovation (OPIC) has been developed based on

evolving documents (Bulgarian and European) and in accordance with the needs of

business and the results of preliminary consultations with all stakeholders, incl. EC

services. In this regard , the flexible approach is the only possible one, because OPIC

(as each OP) is closely related to other planning and programming documents and any

change in one of the parameters can lead to significant changes in other parameters or

parts of the program.

The main stages in the programming of OPIC, activities that are performed in parallel

and coordinated can be defined as follows:

Preparatory stage - development of strategic documents, identifying the stakeholders

(partners), collection and processing of raw data/information

The process of preparing strategic and programming documents for EU funds

management for the programming period 2014-2020 was launched in late 2011. In

January 2012 were approved procedures for their development (Decree №

5/18.01.2012). Decision № 328 / 25.04.2012 of the Council of Ministers has approved a

list of thematic objectives, operational programs and departments responsible for their

preparation.


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In accordance with the provisions of Article 5, paragraph 3 of the Decree №

5/18.01.2012 on identified key partners to participate in the programming process and

set up a working group to develop the Operational Programme for Competitiveness and

Innovation (OPIC). Besides representatives of line ministries and departments in the

working group are also the socio-economic partners, regional and local authorities, civil

society, and academia.

Identified are strategic documents and analyses that are necessary to prepare the new

OP, including applicable ex ante conditionalities (National Strategy for Promotion of

SMEs 2013-2020, Innovation strategy for smart specialization, analysis of the current

programming period, analytical data on the distribution of the Bulgarian economy in

regions and sectors, strategic documents in the field of tourism, strategic analysis for

attracting foreign direct investment, Energy strategy, etc.).

In July 2012, an Agreement was signed with the World Bank for the provision of

consultancy services for providing support for the improvement of the institutional and

legal framework to support the national innovation system of Bulgaria and improve

innovation projects funded by the European Union.

The World Bank assistance under the Agreement is essential for the programming

period 2014-2020. The main activity of the agreement was the development of

Innovative strategy for smart specialization as one of the essential prerequisites for

providing support from by ESIF 2014-2020. A report by the World Bank was prepared

and submitted for the Innovation strategies for smart specialization, on the base of

which in May 2013 the first draft of the Strategy was developed.

Under the Agreement, the World Bank actively cooperated in the development of the

innovative component of OPIC - A review on the support for innovation through OP

"Development of the Competitiveness of the Bulgarian Economy" 2007-2013 was

conducted and opportunities identified for improving performance in 2014-2020, mainly

through financial engineering mechanisms to provide easier access to finance in general,

and specifically to ensure implementation of key activities in the field of innovation in

combination with grants.

In parallel, under the Agreement separate meetings and consultations with businesses

were held, including focus groups in the sectors: ICT, pharmaceuticals, mechatronics

and electronics, food, protection and commercialization of intellectual property, and

creative industries. Concrete recommendations were received from the Association of

Business Clusters, ARI (Association of the recycling industry) and Bulgarian Recycling

Association (BRA), the Association of Industrial Capital in Bulgaria (BICA), Bulgarian

Chamber of Commerce and Industry (BCCI) and others.

In November 2012 the "Position of the Commission Services on the development of

Partnership Agreement and programmess in Bulgaria for the period 2014-2020" was

presented containing specific recommendations of the European Commission and key

priority areas that the Commission would like Bulgaria to focus EU funding for the next

programming period, which served as a base for developing the concept of OPIC 2014-

2020.

At the end of 2012 a qualitative study was conducted through in-depth interviews or

focus groups among beneficiaries and other stakeholders (business organizations,

research institutes, consultants, etc.) in respect to their experience with the current

operational program aimingto outline the main difficulties and to formulate concrete

proposals or guidelines for changes in the next programming period. During the period


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March - May 2013 nationally representative survey was conducted using quantitative

methods to the general group of potential beneficiaries (non-applicants, participated and

rejected, completed / implementing projects under the OP).

With Decision of the Council of Ministers from 09.01.2013 the list of operational

programs was supplemented by OP "Science and Education for Smart Growth", which

triggered a broad and lengthy discussion on the differentiation and complementarities of

the measures in both programs relating to the innovation system in the country and in

particular the aim for synergy in the implementation of innovative activities of business

and academia, and supporting cooperation between the business and science to achieve

an overall positive impact on the Bulgarian economy.

In September 2013 a tender for an external consultant to support the programming

process was opened, including the analysis of the results of the operational program for

the period 2007-2013, the formulation of recommendations for the next programming

period 2014-2020 and support the development of the new OP.

Preparation of concept for OPIC 2014-2020, consultation with stakeholders, and

reaching agreement on key issues.

On 6th

February 2013, at a meeting with representatives of the European Commission

(EC) the scope and indicative priority areas for funding under OPIC were agreed upon.

On this basis, in the context of relevant strategic documents, conducted research and

analysis, the results of ongoing discussions to date within the coordination mechanism

for the development of strategic documents for the next programming period

(workshops to determine the mechanisms of differentiation and complementarities

between OP working group meetings for the Partnership Agreement, several informal

meetings at senior management level to achieve common understanding and agreement

on issues of national importance, the preliminary negotiations with the EC services

since November 2012 and February 2013) and the expertise of the World Bank in April

2013 the first version of the Concept of OPIC 2014-2020 was developed.

The first version of the Concept of OPIC 2014-2020 was presented for discussion at the

first meeting of the Thematic Working Group (TWG ) held on 04.26.2013. The

proposed scope, priority axis, indicative activities and tools for financingwere

discussed. The majority of opinions expressed disagreement with the general approach

of the concept of promoting the development of innovation infrastructure, clusters and

application of new models (tools) to support businesses with proven efficiency

worldwide but not in Bulgaria .

In order to deepen the dialogue and achieve a common understanding on the opinions

and suggestions of the business and its organizations, NGOs, regional and local

authorities and other stakeholders, as well as to better reflect the actual needs of

Bulgarian economy next workshops was initiated to be held in June 2013.

In meantime, the first version of the concept from April 2013 has been evaluated in non-

official paper of the Commission of 22 July 2013 (non paper) as insufficiently mature to

become the basis for Technical Talks. However, the first observation is that: there is

lack of solid justification for the selection of priorities and therefore the study of the

World Bank on the Strategy for smart specialization should be used to broaden the

possibilities for supporting SME‘s and start-ups through financial engineering in

combination with grants.

Based on the comments received and consultations held in June 2013, a second version

of the concept of OPIC 2014-2020 was developed, which was then presented for


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discussion at the second meeting of the Thematic Working Group on 11.07.2013, where

reached a significant level of approval by the stakeholders.

After the meeting of the TWG additional bilateral meetings were conducted between

DG "EFC" the Ministry of Economy and Energy and the Ministry of Education, the

Association of Business Clusters(ABC) and MOEW. Meetings with the Ministry of

Education and MOEW aimed at determing the demarcation lines and complementary

between the programs, and the meeting with ABC aimed at discussing the position of

the ABC on the second version of the concept of OPIC and the indicative activities and

rules of the new operational program in particular the support for clusters.

As a result of the second meeting of the TWG additional comments from 13

organizations were received: MEE -"Innovations, investments and entrepreneurship"

Directorate, Council of Ministers - "Programming of EU Funds" Directorate, Ministry

of Finance, BCCI, BAS and academics, Association of district heating companies in

Bulgaria, NAMB, ABC, Branch Chamber of Wood processing and Furniture Industry,

Bulgarian Association of Producers of aggregates, members of the business and

consulting organizations, MTITC .

The main challenge in the development of the program is to reach consensus among all

stakeholders and balance on the measures which will have quick and immediate impact

on the business (technological upgrading – support for the modernization will be

provided mainly through improved access to finance based on JEREMIE experience,

the introduction of international standards and certification, internationalization, etc.),

and those that require a longer period to achieve certain results and larger investments

(infrastructure for innovation and research; development and commercialization of

innovations, etc.). The key innovation activities will be supported adequately on the

basis of lessons learned from previous schemes for incubators and offices for

technology transfer.

The third TWG meeting was held on 24 April 2014 and the expressed (in dialogue or

written) opinions of stakeholders were taken into account – the comments of NSI,

Bulgarian Academy of Science (BAS), Ministry of Finance (MF), MOEW, MRD, line

departments in the Ministry of Economy and Energy (MEE), MTITC, State Agency for

Metrological and Technical Surveillance , organizations of people with disabilities, the

Association of banks in Bulgaria, CEIBG, BICA, Bulgarian Chamber of Commerce and

Industry (BCCI), Council of Ministers Administration and others. OPIC is published for

public consultations on http://www.strategy.bg.

Developing a comprehensive draft version of OPIC 2014-2020

Based on the broadly accepted by socio-economic partners second version of the

concept of OPIC 2014-2020, the comments received and the results of the meetings and

discussions, the MA elaborated the draft version of the Operational Programme

covering the details with regard to program strategy, priority setting to achieve it in

accordance with the thematic objectives and investment priorities under the draft ERDF

Regulation, indicative support activities, the expected results and indicators to measure

them.

In August 2013 a letter was received from the European Commission on the indicative

allocation of ESI Funds for Bulgaria for the period 2014-2020 on the basis of which at

national level the indicative allocation of financial resources among operational

programs and thematic objectives was finalized. Thus the invisaged priority areas for

support in the overall design of the operational program received their financial terms.

http://www.strategy.bg/


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In October 2013 MA sent a draft OPIC 2014-2020 to the European Commission within

the informal dialogue and technical advice in order to achieve timely consensus on the

scope and planned investments and results of the program. Constructive comments and

remarks were received by the Commission, used in the partnership process to improve

the focus and quality of the operational program.

In December 2013 with the Council of Ministers decision are defined Managing

Authorities (MA) of all operational programs for 2014-2020. OPIC Managing Authority

is the Ministry of Economy and Energy and Directorate General ―European Funds for

Competitiveness". In March 2014 the Council of Ministers approved the Partnership

Agreement 2014-2020 as a base to launch formal negotiations with the European

Commission.

Two rounds of informal consultations with the EC services were held, on which were

discussed and addressed potential "white spots" and problematic areas ("bottlenecks"),

which may arise in the implementation process of the Programme. Also, the Ministry of

Environment and Waters has issued a statement on the environmental assessment,

which is consistent OPIC.

On the 21st of May, 2014 the draft version Operational Programme "Innovation and

Competitiveness" 2014-2020 was approved at a meeting of the Council of Ministers.

The program was sent via the SFC system starting formal negotiations with the EC

services on 31st of May 2014. The EC official comments were received on 07.08.2014.

Additional technical meetings with EC services representatives were held to discuss the

open issues related to ensuring synergy and complementarity of interventions under

TO1 between OPIC and OPSESG and fulfilment of ex ante conditionalites 1.1. and 1.2;

planned use of financial instruments under TO1, TO3 and TO4 in accordance with the

results of the ex ante assessment of applicability of financial instruments under OPIC

and proposed investment strategy; decision on financing of 2-nd phase of the project for

gas interconnector ―Bulgaria – Serbia‖ and including new theamitc objective 7 and new

ex ante conditionality 7.4 in OPIC respectively; development of detailed methodlogy

and criteria for selection of indicators of OPIC. The revised version of OPIC was

resubmitted officialy on 17.11.2014. Upcoming is finalization of the negotiation process

for adoption of OPIC and starting the implementation of programmes‘ objectives and

priorities.

Involvement of partners in the preparation of the Operational Program

In accordance with Article 5 of the draft General Regulation, Operational Programme

―Innovation and Competitiveness " 2014-2020 was developed with the Principle of

Partnership. The members list of the thematic working group for its preparation is

formed in accordance with the provisions of Article 5, paragraph 3 of the Decree №

5/18.01.2012. The participating Bodies and organizations listed in Article 5 (3) ensure

coverage of the views of all stakeholders on the development of OPIC 2014-2020, as

well as use of the expertise of the members for the best possible development of the

document. The members of the thematic working groups, responsibilities and tasks are

defined by Order RD-16-1396/19.10.2013 of the Minister of Economy, Energy and

Tourism (see attached list of partners as an annex to this document).

To ensure the widest possible active participation of stakeholders, civil society

organizations are represented by the most reputable and active business organizations in

the country. A place in the group found representatives of nationally represented


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organizations for people with disabilities, organizations from the thematic groups

"Social Organizations", "Environmental organizations" and ―Development Policy".

Participation of NGOs in the TWG‘s election was conducted according to the

Mechanism for selection of NGOs approved by the Minister on the Management of EU

funds. There was an election of representatives of the academics, in accordance with the

Mechanism and the support of the Ministry of Education and Science.

TWG partners are included in overall preparation, review and approval of the drafts and

final version of the OPIC, as all their rights and obligations as members of the group are

defined in the rules of operation of the TWG adopted by a vote on its first meeting.

To facilitate the involvement of partners from across the country, the venue for the

TWG meetings are selected at best accessible communication facilities, incl.

accessibility for people with disabilities. All decisions of the TWG are being taken by

consensus when possible. In case of disagreement, additional meetings are held. There

is also an availability to create sub-groups for the development of parts of the draft OP /

to discuss specific questions and solve problems related to the functions and tasks of the

working group or the draft operational program). In order to correctly reflect all the

views and comments received, the Secretariat shall prepare minutes of each meeting and

ordination chart, on which are recorded the reflected opinions and given reasons for the

rejection of items.

With a view to enabling the introduction to the draft OPIC and reflecting the views of

the broaden possible group of stakeholders, the website of the 2007-2013 OPDCBE

(Uhttp://www.opcompetitiveness.bg ) were created sections named " New Programming

period 2014-2020‖ and ―Suggestions, opinions and recommendations‖. Under section

―New programming period 2014-2020 " are published minutes of the meetings of the

TWG and the section " Suggestions , opinions , recommendations " allows businesses to

send their suggestions, comments and recommendations for the new programming

period 2014-2020. All submitted proposals, opinions and recommendations are

reviewed by the Managing Authority of OP ―Competitiveness" and received a response.

To promote the project of OPIC 2014-2020, and receive feedback from an even broader

range of individuals and organizations, MA experts participated in a number of

information events to present the project programme.

After the final development of the program and its approval by the EC, cooperation with

the partners will continue in future on the Monitoring Committee, in which majority of

the organizations from the TWG will be represented.

Organization of the ex-ante evaluation and environmental assessment processes

The OPIC was also informed and developed in response to the Ex-ante Evaluation and

the Strategic Environmental Assessment (SEA) and consultation responses to this in

June 2014.

The ex-ante evaluation and environmental assessment have been performed by external

consultants selected through public procurement procedures. During the development of

the programme the MA engaged extensively with both consultants. Discussions and

meetings were held throughout the process as the programme was further improved.

Their comments and proposals were also used to develop the final programme

document.

The consultation documents on the SEA Report were sent to all interested parties

represented in the Thematic working group for the development of OPIC (incl.

http://www.opcompetitiveness.bg/


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participating NGOs), as well as to those defined in the Ordinance on the Conditions and

Procedures for Environmental Assessment of Plans and Programmes (Ministry of

Environment and Water, Ministry of Health, the Regional Inspectorates of the

Environment and Water and the Basin Water Management Directorates). The

documents were also made available online on the MA‘s official website. Response on

the documents was not obligatory.

8. COORDINATION BETWEEN THE FUNDS, EAFRD, EMFF AND OTHER UNION

AND NATIONAL FUNDING INSTRUMENTS, AND EIB

Demarcation and complementarity between the Operational Programme ―Innovation

and Competitiveness‖ (OPIC) and the other Operational Programmes at national level.

One of the challenges to the effective and efficient absorption of the ESI Funds is

achieving a synergistic effect of the various actions under the different operational

programmes at national level. At the same time, it is necessary to draw a clear

demarcation line between operational programmes to avoid overlapping measures and

double funding. The overall mechanism and the bodies to ensure the coordination

between the ESI Funds and the other national and European financing tools are

described in a separate section in Bulgaria‘s Partnership Agreement. At OPIC level the

following areas of demarcation and complementarity with the other operational

programmes in Bulgaria have been identified:

OPIC and Operational Programme “Science, Education and Smart Growth”

(OPSESG)

OPIC and OPSESG are aimed at achieving smart growth of the Bulgarian economy.

Each of them through mutually complementing interventions contribute to the

development of R&D activities, technological development and innovation, which is

defined as Thematic objective 1 of the Common Strategic Framework of ESIF.

The support under OPSESG is aimed at the creation of the necessary infrastructural and

human resources for conduction of applied research in the thematic areas of RIS3. In the

newly created research and innovation infrastructure (centers of excellence and centers

of competence) as well as in the modernized one (research institutes and schools of

higher education) applied research will be conducted, leading to creation and

dissemination of publicly accessible knowledge in RIS3 thematic areas, which, by its

side will serve as an insentive and scientific base for business innovation activity. At the

same time, through financing of applied research, specialization of researchers and

training of PhD and post-PhD students will be accomplished with the aim to build up

and develop the necessary scientific and research capacity in those areas. In addition,

the regional needs for specialization in the RIS3 temathic areas will be addressed by

regional alignment of the centers of competence and by support for infrastructure

modernization in research institutes and schools of higher education whose activity is of

a greater interest for the local business.

OPIC by its side will intervene in support for conduction of applied research and

innovation aimed at creation or improvement of particular products and services in the

enterprises, and their commercialization, while benefiting from the built up capacity and

applied research results within the centers of excellence and centers of competence,

schools of higher education and research organisations


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In support of the innovation activity of the enterprises funding will be provided for

construction, equipment and accreditation of thematically focused laboratories and other

similar infrastructure, necessary for the needs of enterprises for certification,

standartized testing, technical verification, proof of concept, test models and utility

models, prototyping and other similar activities, which are not related to creation of new

knowledge, but are aimed at development and introduction of innovations, including

support for TTOs with constructed basic infrastructure (out of the centers of excellence

and centers of competence).

Thus OPSESG will support activities laying a stable base, in terms of capacity and

applied research, for development of innovative activity of Bulgarian enterprise, as the

quality of research and innovation infrastructure, the creation of a new generation of

researchers and, consequently, the advanced level of education and R&D activity, form

the basis of the innovation capacity of each country. On the other hand, OPIC will focus

on encouraging business to use the results of the created conditions for conducting

innovation activity and transforming those results into marketable products and

processes, which create economic growth.

Special attention will be focused on the achievement of synergy effect of the support for

Sofia Tech Park (STP) by the two OPs. Under OPSESG funding will be provided for

applied research by researchers teams in the framework of the consortium to the

laboratory complex in STP. This includes funding of applied research projects, incl.

expenditure for consumables, hiring and training of researchers, equipment

maintenance, knowledge dissemination and other similar expenditure. OPIC will

intervene in investment expenditure for infrastructure, which has not been financed by

OP Competitiveness 2007-2014 .

At the start of the implementation of the programmes an interinstitutional working

group for the coordination of the demarcations and complementarity issues between the

two programmes in all phases of the project cycle (selection of operations,

programming, monitoring and evaluation of the implementation) will be created. The

discussion and approval of the selection criteria and the specific parameters of the

proposed schemes will be also carried out within the MC of the operational programmes

where the managing authorities are represented with a status of full members.

The implementation of both OPs and the expected complementing effect ought to have

a major contribution to the achievement of the determined national objective for R&D

investment of 1,5% of GDP by 2020.

OPIC and Operational Programme “Regions in Growth” (OPRG)

The strategy of OPRG focuses on improving the quality of life with a view to

overcoming negative demographic trends and using city potential to achieve a balanced

development across the entire national territory. Emphasis will be laid on sustainable

and integrated urban development (Priority 1) by adopting an approach of concentration

of resources by focusing investment in certain cities (identified eligible cities as per

National Concept for Spatial Development for the period 2013-2015), and in particular

within the impact zones of relevant Integrated Plan for Urban Regeneration and

Development (IPURD). The latter will aim to achieve a synergistic effect of the

coordinated implementation of different local sectoral policies and investment at

regional level so that the overall solution would exceed the value added if such policies

and investment were to be implemented separately.


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Coordination between the two operational programmes will be sought within areas of

potential for economic development as per the Integrated Plans for Urban Regeneration

and Development. OPRG will support modernisation and reconstruction of existing or

construction of new technical infrastructure relating to promotion of business and

entrepreneurship, as well as construction, rehabilitation and reconstruction of

commercial and industrial zones, including buildings in areas of potential for economic

development as per IPURD. Extra priority under OPIC can be given to eligible

enterprises developing economic activities or having an intention to invest in an eligible

area of potential for economic development as per IPURD outside the scope of the

definition of ―rural areas‖.

Nearly 1/3 of the OPRG resources will be allocated to Thematic Objective 4.

Supporting the shift towards a low-carbon economy in all sectors, with almost 20%

designated to the implementation of measures for energy efficiency in administrative

and residential buildings and 9% to investing in the development of integrated urban

transport. At the same time, OPIC envisages measures to improve energy efficiency in

enterprises (production processes, heating/cooling, energy performance of buildings). In

this way, the two operational programmes will cover two separate, but also

complementary areas of intervention. The high energy intensity of the Bulgarian

economy compared to the average EU level and the main identified related problems

necessitate implementation of measures to increase energy efficiency along the

production-transfer-energy consumption chain. There is a need to improve the

efficiency of energy consumption in all sectors of the national economy in order to

reach the ambitious national target to increase energy efficiency by 25% by 2020.

By way of complementing the Priority Axis 5 ―Regional Tourism‖ under OPRG, aimed

at preserving and developing cultural heritage of national and world significance, OPIC

envisages support in favour of SMEs through institutional support for the establishment

and operation of management organizations in tourist areas.

In addition to the thematic objectives that will be the focus of the respective operational

programme, the main demarcation between OPIC and OPRG can be sought in terms of

the potential beneficiaries of the two programmes: OPIC will support micro-, small,

medium-sized and large enterprises and agencies and other organisations and

institutions associated with the provision of services for the business and for

improvement of the business environment, while OPRG will support - municipalities

in accordance with IPURD, the Housing Policy Directorate at the MRD, and financial

institutions in connection with the implementation of financial tools for the needs of the

OPIC.

OPIC and Operational Programme “Environment” (OP Environment)

OPIC and OP Environment will simultaneously address one of the aspects of the main

goal of Europe 2020 – smart, sustainable and inclusive growth, namely sustainability.

Both programmes envisage actions in support of the implementation of Thematic

Objective 6. Protecting the environment and promoting resource efficiency of the CSF

of the ESI Funds. OP Environment foresees measures for protection, restoration and

maintenance of biodiversity within the National Ecological Network including protected

areas and territories (PA ―Natura 2000 and Biodiversity‖); improvement of municipal

waste management systems and ensuring proper treatment, recovery and disposal of

municipal waste in observance of waste management hierarchies and with a focus on

meeting the objectives set by the national and Union legislation (PA ―Waste‖);

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agglomerations in which wastewater sewage is discharged without proper treatment,

provision of clean and safe drinking water to the population, improvement of the water

monitoring system, and development of information systems and water management

models. The planned measures will be implemented by organisations of or units within

the MoEW, ExEA, municipalities, profit and non-profit legal entities, science institutes,

authorities/bodies/units responsible for the management of Natura 2000 sites in the

country and protected areas,etc.

At the same time, OPIC envisages implementation of eco-innovation in enterprises by

means of a horizontal approach. Support will be offered for implementation of high-tech

solutions for optimisation of production processes and reduced use of raw materials;

implementation of modern technologies for use of waste as raw material in new

production and/or other alternative uses; implementation of zero-waste technologies,

innovative production materials, green production technologies etc. in all sectors of the

economy. In this regard, OPIC will concentrate on introducing eco-innovation to foster

better uses of resources and energy and enhance enterprise productivity, while the focus

of OP Environment will be the protection of the environment. OP Environment does not

envisage actions to support the use of innovative solutions in the field of the

environment. Hence, no overlap/duplication of interventions between the two

programmes can be expected.

OPIC and Operational Programme “Human Resources Development” (OPHRD)

The strategy of OPHRD is based on three pillars – Achieving of higher rates of and

quality employment; Reducing poverty and promoting social inclusion; Modernisation

of public policies, as well as on the identified basic needs of the target groups of the

Programme. OPHRD addresses the social element of the main goal of Europe 2020 –

smart, sustainable and inclusive growth, namely fostering the economy through high

rates of employment leading to social and territorial cohesion.

The complementarity of the measures of the two operational programmes will help

ensure higher effectiveness for ESI funding. On the one hand, OPIC will support

entrepreneurship and enhancing the export and production potential of enterprises,

which is a prerequisite for creation of new jobs. On the other, OPHRD will implement

measures to promote easier adaptation for employed people, enterprises and

entrepreneurs to the changing needs of the economy and the labour market, including

through development of the knowledge and skills of the employed in accordance with

the qualifications and competences required by enterprises, introduction of new forms

of labour organisation and promotion of geographic and professional mobility.

The programmes will be complementary in terms of measures for promotion of

entrepreneurship. OPIC foresees to promote entrepreneurship mainly through financial

engineering instruments pursuant to Thematic Objective 3. The relevant OPHRD

actions in this regard will aim to improve access to employment through promotion of

entrepreneurship and starting own economic activity or self-employment under

Thematic Objective 8. OPIC will support eneterprises with more significant investment

needs while OPHRD will support newly established enterprises with minor investment

needs (up to 50 000 lv.).

With regard to the beneficiaries OPHRD will support measures for employment of

individuals that want to start their own business and don‘t have registered legal entity or

newly established enterprises registered by those individuals. OPIC will promote the

establishment of new enterprises mainly in the high- and medium-technology and

―knowledge based services‖ sectors as per NSPSMEs, development of new ideas, new


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products/services and enterpreunireship in specific areas as cultural and creative

industries, enterprises developing new products or services related to an ageing

population, care and health, social entrepreneurship, and cooperatives of people with

disabilities.

Complementarity between the two programmes will be sought through possibilities for

coordinated implementation of schemes supporting the beginning of independent

activity, as well as social entrepreneurship. In these cases start-ups supported under

OPHRD, incl. social enterprises. will have access to schemes supporting their further

development under OPIC. Under OPHRD will be supported start-up social enterprises

by funding activities in the area of social marketing, the promotion of the social

economy and social entrepreneurship, social and professional integration of members of

vulnerable groups, equipment and adapting of jobs, improvement of the capacity and

human resources for effective management etc. Subsequently, OPIC support for social

enterprises that are legal entities will be carried out through the promotion of

entrepreneurial ideas in areas related to European and regional challenges, funded with

grants, as well as financial instruments for development, support to improve production

capacity and quality, use of ICT, consulting services etc.

OPIC and Operational Programme “Transport and Transport Infrastructure”

(OPTTI)

OPTTI is aimed at developing sustainable transport and transport systems. The

Programme envisages promotion of a multi-modal Single European Transport Area

through investment in Trans-European Transport Networks, development of

environmentally-friendly low-carbon transport systems, and promotion of sustainable

urban mobility, including river and sea transport, ports and multimodal connections

(under Thematic Objective 7). Ensuring good road infrastructure is one of the impact

factors of business development, however, there are no overlapping areas of investment

between the two programmes.

OPIC and Operational Programme “Good Governance” (OPGG)

OPIC envisages support to businesses in designated areas of intervention in accordance

with the programme priorities (innovation, entrepreneurship and competitive SMEs,

energy and resource efficiency). A key element will be the provision of direct support to

enterprises (vouchers, grants and financial instruments). The effectiveness of this

investment is directly dependent on the support that will be offered under OPGG

towards a more favourable overall business environment and competitiveness,

especially through good regulation and focus on quality and timeliness of public service

provision, including follow-up development of e-government.

Moreover, OPIC will allow for implementation of a limited number of quality projects

of national level institutions (agencies and other institutions) or projects in partnership

(e.g. with business organisations) of direct benefit to business development – awareness

raising, e-applications, international presence, investment or export operations etc.

Among others, eligible actions will include: targeted investment for standardisation and

accreditation, peer review, technological equipment and facilities for laboratories and

control units, innovation capacity and capacity in the field of patents and enforcement of

intellectual property legislation, monitoring and evaluation systems in the area of energy

and resource efficiency of enterprises, strictly specialised professional qualification in

eligible areas for financing under OPIC.

OPIC and Rural Development Programme (RDP)


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The support under OP "Innovation and Competitiveness" and the Rural Development

Programme (RDP) is mutually complementing in terms of innovation, development of

SMEs sector and energy efficiency, the demarcation between the two programmes is

based on the territorial scope, eligible sectors, target groups and beneficiaries and the

types of activities included in the scope of the relevant priorities.

The support for innovation under PA 1 of OPIC is in line with the thematic areas and

horizontal policies identified in RIS3 except those covered by the RDP (e.g. Production

of organic food). The support for innovation under RDP is horizontal and is provided

for sectors of agriculture and food industry for processing and marketing of products

from Annex I to the TFEU, with the exception of fish and fishery products. Within the

European Innovation Partnership "Agricultural Productivity and Sustainability" support

will be provided for the establishment and functioning of the operating groups that will

implement specific innovative project.

In terms of support for SMEs and start-ups under PA 2 of OPIC SMEs from the sectors

defined in NSPSMEs (high, medium and low technology sectors) will be supported,

with the exception of sub-sectors of the food industry for the processing and marketing

of products from Annex I to the TFEU, covered by RDP and with the exception of fish

and fishery products. Investment support and initial aid for non-agricultural activities is

provided to small and medium enterprises throughout the entire territory of the country

and to micro enterprises outside rural areas.

RDP provides investment support for modernization of farms and enterprises,

processing and adding value to agricultural products, incl. food industry for processing

and marketing of product from Annex I to the TFEU, with the exception of fish and

fishery products. Investment support and initial aid for non-agricultural activities is

given to micro enterprises in rural areas.

In terms of energy efficiency OPIC (PA 3) addresses problems of high energy intensity

of manufacturing enterprises, with the exception of farmers and enterprises from food

industry for processing and marketing of products from Annex I to the TFEU, subject of

support under RDP. Both programmes will provide support for use of energy from

renewable sources for own consumption. Enterprises – beneficiaries of OPIC will have

the opportunity to implement measures for use of biomass, including primary and

secondary biomass of products from Annex I. The production of biomass in forestry

will be supported under RDP.

The support for resource efficiency under OPIC is aimed at enterprises and / or groups

of manufacturing enterprises for pilot and demonstration initiatives to increase the

efficient use of resources. Enterprises from food industry for processing and marketing

of product from Annex I to the TFEU are excluded.

The support under OPIC excludes primary production of agricultural products,

including fish and fishery products. In terms of the food industry, processing /

marketing of agricultural products from Annex I to the TFEU, supported under RDP

are excluded by OPIC: milk and milk products, meat and meat products, fruits and

vegetables, including mushrooms, honey, cereals, grain mill and starch products,

vegetable and animal oils and fats, technical and medical plants, including rose oil and

herbs, prepared feeds for farm animals, grape must, wine and vinegar, energy

production through processing plant and animal products with the exception of biomass

of fishery products.

OPIC and Programme for Maritime Affairs and Fisheries (PMAF)


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PMAF will be financed through the European Maritime and Fisheries Fund and will

include measures in the field of development of research infrastructure and applied

research, technological development and innovation, competitiveness, entrepreneurship,

low-carbon technologies and energy efficiency, environmental protection etc. in the

fisheries and aquaculture sectors.

Considering the nature and scope of the proposed measures under the two programmes,

the main line of demarcation should, as in the current programming period, be sought in

terms of beneficiaries. Eligible beneficiaries of PMAF will be physical persons and

legal entities registered under the Commerce Act or the Cooperatives Act and operating

in the fisheries and/or aquaculture sector, as well as organisations and associations of

organisations of producers in the fisheries or aquaculture sectors and other groupings in

the said sectors that are excluded from the scope of OPIC. With regard to measures to

support ―blue‖ growth PMAF emphasis on marine flora and fauna, and OPIC will fund

projects in case the demand and the potential for the development of "blue" energy is

demonstrated.

Demarcation and complementarity between the Operational Programme

“Innovation and Competitiveness” and other programmes under the Common

Strategic Framework

In order to guarantee the most effective and efficient use of EU resources, it is necessary

to ensure a coordinated approach, cooperation and complementarity of financing tools

in EU programmes and Member States with innovative approaches to tackle global

economic and social challenges. It should therefore be determined which of the

identified funding areas/priorities can be financed through horizontal programmes of the

EU that are relevant to OPIC objectives.

OPIC and Horizon 2020

The framework research and innovation programme Horizon 2020 (2014-2020) will be

the main financial instrument implementing the Innovation Union, a Europe 2020

flagship initiative aimed at securing smart, sustainable and inclusive growth. The

Programme will focus on financing three key priorities:

The first will support Europe‘s position as global leader in research, for example

through the European Research Council, associations and research

infrastructure;

The second will strengthen Europe‘s industrial leadership and make Europe a

more attractive location for investment in research and innovation by providing

major investment in key industrial technologies and offering greater access to

capital and support for SMEs;

The third will address major concerns shared by all citizens in Europe, organised

under six key headlines or Societal Challenges: health, demographic change and

well-being; food security, sustainable agriculture, marine and maritime water

research and bioeconomy; secure, clean and efficient energy; smart, green and

integrated transport; climate action, resource efficiency and raw materials;

inclusive, innovative and secure societies.

OPIC envisages actions to support innovation and increase the competitiveness of

Bulgarian enterprises. This will ensure convergence of the levels of development of

innovation in Bulgaria and the EU, as well as opportunities (increased capacity) for

active and successful participation of Bulgarian enterprises in international initiatives,


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programmes and projects in the field of innovation and development of key industrial

technologies. Enterprises or other organisations are generally eligible to apply under the

EU horizontal programmes as long as they can submit sustainable and successful

transnational projects which require a certain capacity to prepare and implement.

Securing the necessary investment and working capital is one of the main problems

facing businesses in Bulgaria and the development of entrepreneurship that is addressed

by OPIC, envisaging financial instruments in the field of innovation in accordance with

the ex-ante evaluation of financial instruments.

Horizon 2020 place particular emphasis on the transition to green economy as a driver

of sustainable development. The financial allocation to climate impacts and resource

efficiency will be parallelled with other specific objectives so that at least 60% of the

proposed total budget, amounting to 80 billion euros, will be allocated to sustainable

development and 35% to climate-related issues. The goal will be to provide direct

benefits to citizens, such as safe food, clean cities, green transport and energy-efficient

buildings.

OPIC has a designated priority axis to support the transition to green and efficient

economy whereas eco-innovation falls under PA 1.

OPIC and Programme for the Competitiveness of Enterprises and Small and

Medium-Sized Enterprises (COSME)

The new Programme for the Competitiveness of Enterprises and Small and Medium-

Sized Enterprises has a planned budget of 2.3 billion euros and is aimed at facilitating

SMEs‘ access to funding, creating a favourable environment for business development

and growth of enterprises, fostering entrepreneurial culture in Europe, enhancing

sustainable competitiveness of enterprises in the EU, improving the access of small

businesses to international markets, and supporting the development of the Enterprise

Europe Network.

OPIC envisages actions aimed at promoting entrepreneurship and business development

and supporting the internationalisation of enterprises and the development of business

services. This will increase the capacity of Bulgarian enterprises to participate in

European initiatives and compete internationally.

The envisaged activities like mentoring and attracting international experience will

strenghthen the capacity of enterprises and organizations to apply for financing under

COSME and Horizon 2020...

Complementarity and demarcation of Operational Programme “Innovation and

Competitiveness” with other national instruments

The National Innovation Fund (NIF) at the Ministry of Economy and Energy, which is

managed by BSMEPA, will be assigned BGN 10 million from the central budget,

including also the 7th

round of applications. The identified priority sectors and areas of

industrial research and experimental development to be financed from the NIF under the

seventh round of applications are: mechanical engineering, electronics, food processing,

ICT in enterprises and creative industries.

The main goal of the NIF is to promote research and development in order to enhance

the competitiveness of Bulgarian enterprises, and its specific objective is to promote the

implementation of research and development projects and technical feasibility projects

initiated and implemented by enterprises with best performance in order to acquire new

or improved products, processes or services aimed at enhancing the economic


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efficiency, innovation potential and technological development of enterprises,

leveraging private investment, and improving the dynamics of innovative processes.

The Fund aims to improve the market outcome for enterprises and society as reflected in

better prices for higher quality, increased production volumes, reduced resource use and

increased investment in efficient businesses.

OPIC and EUREKA

EUREKA is a Europe-wide network for market-driven industrial research and

development. It facilitates the competitiveness of European businesses through

development of international cooperation leading to networking and development of

innovation networks. EUREKA‘s goal is achieving commercialisation of the results of

quality research and development and using the multiplier effect of joint operation to

improve the quality of life.

At present the EUREKA network numbers 39 members, the 40th

being the European

Union. Besides EU States, other members in the initiative are Switzerland, Russia,

Macedonia, Israel, Ukraine, Turkey etc.

The Bulgarian Small and Medium Enterprises Promotion Agency organises and

coordinates the activities related to the country‘s participation in the EUREKA

initiative. The costs of the participation of Bulgarian organisations in projects under

EUREKA are covered from the budget of the National Innovation Fund.

OPIC and EUROSTARS II

EUROSTARS II is successor to EUROSTARS – a joint initiative of EUREKA and the

European Commission under the 7th

Framework Programme for research and

technological development (FP7), and, respectively, Horizon 2020 in the new

programming period. Its aim is to provide funding for market-oriented research and

experimental development with the active participation of small and medium-sized

enterprises in the field of research and development.

EUROSTARS provides opportunities for joint national and European funding of

international research projects, where projects should have partners (legal entities) from

two or more EUROSTARS countries and the lead partner should be a ―small or

medium-sized enterprise working in the area of research and development‖.

The Bulgarian Small and Medium Enterprises Promotion Agency organises and

coordinates the activities related to the country‘s participation in the joint EUROSTARS

initiative. The costs of the participation of Bulgarian organisations in projects under

EUROSTARS are covered from the budget of the National Innovation Fund.

Demarcation and complementarity between the Operational Programme ―Innovation

and Competitiveness‖ and other instruments of the European Economic Area and

Norway

OPIC and Norway Grants

Green industry innovation is one of the support areas of Norway Grants in the financing

period 2009-2014. The total contribution of Norway in the period will amount to over

110 million euros. The overall objective of the grants is increased competitiveness of

green enterprises, including greening of existing industries, green innovation and green

entrepreneurship. The expected results of this particular area of support are: realisation

of business opportunities for greening the European economy – reduced production of


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waste and reduced air, water and soil pollution – more use of environmentally-friendly

technologies, increased job creation and entrepreneurship.

OPIC and Swiss Programme

Switzerland cooperates with the EC by supporting efforts to reduce economic and social

disparities. The contribution of Bulgaria in the amount of 76 million Swiss francs will

be implemented in the form of projects and programs in the period 2010-2019.

Switzerland participates in areas in which Bulgaria has declared greatest needs and

where Switzerland can provide their expertise. In these areas the support to the private

sector, research and education and the support for building partnerships are included.

The Bulgarian-Swiss Research Programme 2011-2016 encourages joint scientific

cooperation between the two countries.

9. EX-ANTE CONDITIONALITIES

The applicable ex-ante conditionalities are general and thematic:

General ex-ante conditionality 1. The existence of administrative capacity for the

implementation and application of Union anti-discrimination law and policy in the field

of ESI Funds.


implementation and application of Union gender equality law and policy in the field of

ESI Funds.


implementation and application of the United Nations Convention on the rights of

persons with disabilities (UNCRPD) in the field of ESI Funds in accordance with

Council Decision 2010/48/EC.

General ex-ante conditionality 4. The existence of arrangements for the effective

application of Union public procurement law in the field of the ESI Funds.

General ex-ante conditionality 5. The existence of arrangements for the effective

application of Union State aid rules in the field of the ESI Funds.

General ex-ante conditionality 7. The existence of a statistical basis necessary to

undertake evaluations to assess the effectiveness and impact of the programmes.

The existence of a system of result indicators necessary to select actions, which most

effectively contribute to desired results, to monitor progress towards results and to

undertake impact evaluation

Thematic conditionality 1.1. Research and innovation: The existence of a national or

regional strategy for smart specialisation in line with the National Reform Programme

aimed to raise private funds for research and innovation, in line with the characteristics

of well-performing national or regional systems in research and innovation.

Thematic conditionality 3.1. Specific actions have been carried out to underpin the

promotion of entrepreneurship taking into account the Small Business Act (SBA).

Thematic conditionality 4.1. Actions have been carried out to promote cost-effective

improvements of energy end use efficiency and cost-effective investment in energy

efficiency when constructing or renovating buildings.


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Thematic conditionality 4.3. Actions have been carried out to promote the production

and distribution of renewable energy sources.

Thematic conditionality 6.1. Water sector: The existence of a) a water pricing policy

which provides adequate incentives for users to use water resources efficiently and b) an

adequate contribution of the different water uses to the recovery of the costs of water

services at a rate determined in the approved river basin management plan for

investment supported by the programmes.

Thematic conditionality 6.2. Waste sector: Promoting economically and

environmentally sustainable investments in the waste sector particularly through the

development of waste management plans consistent with Directive 2008/98/EC, and

with the waste hierarchy.

Thematic conditionality 7.4. Development of smart energy distribution, storage and

transmission systems. The existence of comprehensive plans for investments in smart

energy infrastructure, and of regulatory measures, which contribute to improving energy

efficiency and security of supply.

9.1. Description of the actions which will be taken to implement ex-ante

conditionalities, responsible authorities and timeframe of these actions

The actions which will be taken to implement the applicable general ex-ante

conditionalities are presented in the table below.


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Table 9-1 Applicable ex-ante conditionalities and assessment of their fulfilment

Applicable ex-ante

conditionality for which

national authorities are

responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No

Reference (if fulfilled)

(reference to the strategies, legal acts or

other relevant documents articles or

paragraphs, accompanied by a

hyperlink or other access to the full text)

Explanation (where appropriate)

Thematic ex-ante conditionalities under ESIF

1.1. Research and

innovation: The existence

of a national or regional

smart specialization

strategy in line with the

National Reform

Program, to leverage

private research and

innovation expenditure,

which complies with the

features of well-

performing national or

regional R&I systems.

NO A national or regional smart

specialization strategy is in place that:

— is based on a SWOT or similar

analysis to concentrate resources on a

limited set of research and innovation

priorities;

— outlines measures to stimulate

private RTD investment;

— contains a monitoring mechanism.

NO A working draft of the SSS strategy is

prepared. It is elaborated together with

expert from the WB.

http://www.mi.government.bg/files/userupl

oads/files/innovations/ris3_31_10_2013.pd

f.

National Strategy of Scientific Research to

2020 - adopted by the National Assembly

in 2011.

http://www.strategy.bg/StrategicDocuments

/View.aspx?lang=bg-BG&Id=708

National Strategy of Scientific Research

was adopted by Decision of the National

Assembly in 2011 (State Gazette, issue 62,

dated 12.08.2011). The strategy provides a

stable framework for the development of

research institutions and of the scientific

and innovation activities in Bulgaria for a

period of ten years 2011 - 2020. It contains

all necessary elements required in the ex-

ante conditionalities for the EU Structural

and Investment Funds for 2014-2020 - it is

based on the SWOT analysis and outlines

the measures to improve the research and

http://www.mi.government.bg/files/useruploads/files/innovations/ris3_31_10_2013.pdf



http://www.strategy.bg/StrategicDocuments/View.aspx?lang=bg-BG&Id=708

http://www.strategy.bg/StrategicDocuments/View.aspx?lang=bg-BG&Id=708


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Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







technological development and includes

indicators for monitoring the

implementation of objectives, tasks as well

as measures and mechanism for

monitoring. Furthermore, it is accompanied

by a three-year Action Plan for the period

August 2011 - August 2014, and the

effectiveness of the implementation of the

objectives and measures will be evaluated

by independent experts on a three-year

period. The Action Plan is the framework

for the activities, programs and initiatives

that the Government will implement in

connection with the implementation of the

National Research Strategy. The Action

Plan covers the policies, priorities and

programs of line ministries and

departments in the science and innovation

system. The Action Plan proposes a

combination of measures and actions,

supported by various national funds,

European programs, cohesion instruments

and special schemes for support from third

parties.

A framework outlining available

budgetary resources for research and

innovation has been adopted.

NO

1.2 Research and

Innovation infrastructure.

The existence of a multi-

NO An indicative multi-annual plan for

budgeting and prioritization of

investments linked to Union priorities,

NO National Roadmap for Research

Infrastructure

In implementation of the Roadmap,

MES participated in three pan-

European research infrastructures


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Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







annual plan for budgeting

and prioritization of

investments.

and, where appropriate, the European

Strategy Forum on Research

Infrastructures (ESFRI) has been

adopted.

http://www.mon.bg/top_menu/science/infr

astructure/

National Roadmap for Research

Infrastructure is adopted by CoM Decree

No. 692 dated 21.09.2010. The National

Roadmap has identified priority

infrastructures as well as possible sources

of funding. In developing the National

Roadmap, experts from the European

Strategy Forum for Research

Infrastructures are attracted and ex ante

assessment is made of the included

infrastructures.

through concluded Memoranda of

Understanding.

As at 2013 Bulgaria is part of the

following international consortium:

1. EURO-ARGO - Global

Monitoring of Oceans - PART OF

THE ADVANTAGES FOR

BULGARIA, Bulgaria has the

potential to be designated as a

Regional Coordinator for the Black

Sea. Our participation in the

EURO-ARGO will improve the

technical installations for

observations of the Black Sea, the

climate change and for better

precision and accuracy of weather

forecasting. Will provide access to

advanced facilities and information

about the countries of the region

and will provide services to the

benefit of society - climate change,

the state - security of maritime

transport and business - aquaculture

and fisheries, and others;

2. BBMRI - BIOBANKING AND

BIOMOLECULAR RESOURCES,

Bulgarian scientists will participate

http://www.mon.bg/top_menu/science/infrastructure/

http://www.mon.bg/top_menu/science/infrastructure/


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Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







in the development of new

diagnostic methods and drugs,

including a quick transfer to clinical

trials and development of methods

for individual diagnosis and

subsequent treatment.

3. CLARIN-E-

INFRASTRUCTURE FOR THE

INTEGRATION AND

DEVELOPMENT OF

ELECTRONIC LANGUAGE

RESOURCES WITH UNIQUE

DATABASES AND

KNOWLEDGE BASES FOR

BULGARIAN LANGUAGE

TECHNOLOGY SOFTWARE

MODULES AND COMPUTER

NETWORKS. CLARIN will

preserve Bulgarian linguistic

heritage and will provide wide

access to language resources and

technologies to all potential users

from industry and research to

education.

3.1. Specific actions have

been carried out to

underpin the promotion of

entrepreneurship taking

into account the Small

YES The specific actions are:

— measures have been put in place

with the objective of reducing the time

and cost involved in setting-up a

business taking account of the targets

YES Applications for initial registration of

traders are considered within the statutory

three days. The fee for registration of a

limited liability company is currently well

below the specified amount of 100 €.

Legal acts in effect regulating the measures

Draft amendments and

supplements to the Commercial

Register Act (in implementation of

measure 7 of the package of

measures to reduce the regulatory

burden adopted by Decision No

484/15.08.2013 of the Council of


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Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







Business Act (SBA). of the SBA;

are available on the following websites:

http://www.registryagency.bg/downloads/Z

TR.pdf

http://www.registryagency.bg/downloads/t

arifa.pdf

Four plans to reduce the administrative and

regulatory burden on business, containing a

total of 385 measures are currently being

implemented - Plan to reduce the

regulatory burden on the business from

2012 and three new packages to reduce the

administrative and regulatory burden on

the business, adopted in 2013 and 2014.

Most of these measures relate to reducing

the time to establish a business.

http://www.strategy.bg/Publications/View.

aspx?lang=bg-

BG&categoryId=&Id=170&y=&m=&d=

http://www.strategy.bg/StrategicDocument

s/List.aspx?lang=bg-

BG&categoryId=6&typeConsultation=1&t

ypeCategory=6&docType=2

Ministers (CoM) have been

prepared a and provide for a

reduction of the period for initial

registration of traders from 3 days

to one day.

The proposed texts are included in

the

draft legislative amendments to

reduce

the regulatory burden, namely the

transitional provisions of the Draft

Law

amending the Law on Tourism.

Draft

Law amending the Law on Tourism

was

adopted by the Council of Ministers

in

January 2014 and was submitted to

the

National Assembly on February 4,

2014.

Same is considered by the

Committee

on European Affairs and Control of

the

European Funds (February 26,

2014)

and by the Committee on Legal

Affairs

(March 12 2014). Its first reading in

plenary is forthcoming.

On 14.02.2014 in the Official

http://www.registryagency.bg/downloads/ZTR.pdf

http://www.registryagency.bg/downloads/ZTR.pdf

http://www.registryagency.bg/downloads/tarifa.pdf

http://www.registryagency.bg/downloads/tarifa.pdf

http://www.strategy.bg/Publications/View.aspx?lang=bg-BG&categoryId=&Id=170&y=&m=&d



http://www.strategy.bg/StrategicDocuments/List.aspx?lang=bg-BG&categoryId=6&typeConsultation=1&typeCategory=6&docType=2





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Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







Gazette No. 13/14.02.2014 was

promulgated and became effective

Decree № 15 of 7 February 2014

amending the Tariff of state fees

collected by the Registry Agency

adopted by Decree № 243 of the

Council of Ministers in 2005. The

adopted amendment reduces the

fees for the registration of traders in

the Commercial Register at the RA.

Information about the amendments

to the Tariff for state fees collected

from the RA can be found on the

website of the Registry Agency:

http://www.registryagency.bg/down

loads/tarifa.pdf

JEREMIE is used to create seed and

start-up funds and accelerators that

fill in the niche in the market to

fund business ideas and start-ups.

The banks do not provide such

funding. The funds operate a little

over a year and are considered one

of the most successful not only in

Bulgaria but also in the wider

Balkan region. As a result, Bulgaria

climbs 12 steps up in the

"Entrepreneurship" by SBA and

now ranks ninth. Bulgaria ranks 6

in the EU in the ranking of the

World Bank with regard to density


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Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







of start-ups. Funds are managed by

private companies, using funds

under JEREMIE, awarded through

the program "Competitiveness" of

MEE, and the funds are from the

EIF.

http://doingbusiness.org/data/explor

etopics/entrepreneurship

http://eleven.bg/bulgarian/

http://launchub.com/

— measures have been put in place

with the objective of reducing the time

needed to get licenses and permits to

take up and perform the specific

activity of an enterprise taking

account of the targets of the SBA;

YES There are national plans and programs that

are aimed at reducing the administrative

burden and for better regulation (see

above).

CoM Decision №484 dated August 2013

http://www.strategy.bg/PublicConsultation

s/View.aspx?lang=bg-BG&Id=1043

CoM Decision №484 dated October 2013

See TExAC 11.

— a mechanism is in place to monitor

the implementation of the measures of

the SBA which have been put in place

and assess the impact on SMEs.

YES National Strategy for Promotion

of Small and Medium Enterprises 2014-

2020 National Strategy for Promotion of

Small and Medium Enterprises 2014-2020

was adopted by Decision № 37 of the

Council of Ministers of 23 January 2014.

http://doingbusiness.org/data/exploretopics/entrepreneurship

http://doingbusiness.org/data/exploretopics/entrepreneurship

http://eleven.bg/bulgarian/

http://launchub.com/

http://192.168.0.37/prin/document_view.aspx?DocumentID=w3OjtsqNgwe3yZ+qEQZ+sA==

http://www.strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=1043

http://www.strategy.bg/PublicConsultations/View.aspx?lang=bg-BG&Id=1043

http://192.168.0.37/prin/document_view.aspx?DocumentID=rQms5VXf82QHBo76W48aVQ==


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It is entirely adapted to SBA. The criteria

for evaluation of the implementation of the

strategy objectives meet the criteria used

by EC in assessing the implementation of

SBA in the so called Fact Sheets.

http://www.mi.government.bg/bg/themes/n

acionalna-strategiya-za-nasarchavane-na-

msp-v-balgariya-2014-2020-small-

business-act-11-285.html

Internal assessment other than through

SBA Fact Sheets is also carried out by

considering the implementation of the

Annual program for implementation of the

Strategy by the SME under the SME Act,

Article 12, paragraph 1.

• Annex № 1 to Art. 30a, para 2, item 6 of

RPCMA provides that assessment is

required for the administrative and

regulatory burden. Such an assessment is

an element necessary to the performance of

the SME test. Pursuant to the adopted

Concept for implementation of SME-test,

systematic application of the SME test

should be guaranteed by the amendments

to the Act on regulations. that The draft

Law amending the LLA, which includes

the impact assessment and the SME test, is

in the process of interministerial

coordination under Art. 32-34 of RPCMA

http://www.mi.government.bg/bg/themes/nacionalna-strategiya-za-nasarchavane-na-msp-v-balgariya-2014-2020-small-business-act-11-285.html





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4.1. Actions have been

carried out to promote

cost-effective

improvements of energy

end use efficiency and

cost-effective investment

in energy efficiency when

constructing or renovating

buildings.

Partially The actions are:

— measures to ensure minimum

requirements are in place related to the

energy performance of buildings

consistent with Article 3, Article 4 and

Article 5 of Directive 2010/31/EU of

the European Parliament and of the

Council ( 1 );The actions include:

NO

Bulgaria has adopted a methodology for

calculating the energy performance of

buildings, which is regulated in Article 15

of the Energy Efficiency Act (EEA),

promulgated in SG 24, dt 12.03.2013, and

in the provisions of Ordinance No РД-16-

1058 on indicators for energy consumption

and energy performance of buildings of

MEE and MRD and in the provisions of

Ordinance No. 7 on energy efficiency, heat

and energy savings in buildings of MIP and

Appendix No 3 of Ordinance No 7.

http://www.seea.government.bg/index.php

?option=com_content&view=article&id=9

250&Itemid=227&lang=bg

http://www.seea.government.bg/documents

/Naredba%207.pdf

According to the methodology for

calculating the energy performance

of buildings, the latter is determined

on the basis of the calculated or

measured amount of energy needed

to meet the energy needs associated

with typical consumption for the

building which includes heating,

cooling, ventilation, hot water and

lighting. The needs of heating,

cooling, ventilation and hot water

for domestic use and for non-

residential lighting are reflected.

The energy performance of a

building is expressed in a

transparent manner and includes an

indicator of energy use and digital

indicator for primary energy use.

The methodology takes into account

the aspects affecting energy

performance as follows: Features of

the building and energy plants:

heating, hot water supply, air

conditioning, ventilation, lighting,

solar systems and protection, indoor

climatic conditions, etc.; aspects

that positively influence the energy

performance: local solar exposure,

active solar systems, other heating

and electricity systems based on

renewable energy sources,

http://www.seea.government.bg/index.php?option=com_content&view=article&id=9250&Itemid=227&lang=bg



http://www.seea.government.bg/documents/Naredba%207.pdf

http://www.seea.government.bg/documents/Naredba%207.pdf


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electricity produced from co-

generation, systems for heating /

cooling of the district or block of

flats, natural lighting and more.

In SG, issue 93, dated 25.10.2013,

an Ordinance supplementing

Ordinance No. 7 of 2004 is

promulgated for energy efficiency,

heat and energy savings in

buildings by the Minister of

Investment Planning. The

supplemented Ordinance includes

explicit reference to Commission

Delegated Ordinance (EU) No

244/2012 of 2012 supplementing

Directive 2010/31/EU by

establishing a comparative

methodology framework for

calculating cost-optimal levels of

minimum requirements energy

performance of buildings and

building components (OJ, L 81/18

of 21 March 2012).

Pursuant to Art. 5, paragraph 2 of

Directive 2010/31/EU on the energy

performance of buildings and art. 6

of Regulation 244/2012 of the

Commission, a report has been

developed and presented to the EC


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"Calculation of optimal cost levels

of minimum energy performance

requirements for buildings in the

Republic of Bulgaria".

The report was developed based on

the results of four consecutive and

interrelated systematic analyses of

buildings in Bulgaria. The

legislative acts in the field of energy

efficiency for project, establishment

and renovation of buildings in

conformity of the requirement in he

Directive 2010/31/ЕU and

Regulation 244/2012 of the EC.

Forthcoming is notification in front

of the bodies of the EC.

— measures necessary to establish a

system of certification of the energy

performance of buildings consistent

with Article 11 of Directive

2010/31/EU;

YES

In Section II of the Energy Efficiency Act,

promulgated in SG 24, 12.03.2013 a

system of certification of the energy

performance of buildings is regulated

"Energy efficiency evaluation and

certification of buildings", as well as in

Ordinance No 16-1594 of 13.11.2013 on

energy auditing, certification and

assessment of energy savings in buildings,

with its Appendices.




Pursuant to the mentioned

regulations governing the

certification system of buildings,

there are in place energy

performance certificates to allow

the owners or tenants of the

building or building part to compare

and assess its energy performance;





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— measures to ensure strategic

planning on energy efficiency,

consistent with Article 3 of Directive

2012/27/EU of the European

Parliament and of the Council ( 2 );

YES Strategic planning of energy efficiency is

accomplished with the Energy Strategy of

the Republic of Bulgaria.

http://www.mi.government.bg/bg/themes/e

nergiina-strategiya-na-republika-balgariya-

do-2020-g-147-295.html

http://www.minfin.bg/bg/page/573- - p.36

In terms of residential buildings a National

Housing Strategy and National Program for

Renovation of Residential Buildings in the

Republic of Bulgaria are in effect.

Bulgaria has set national indicative

energy efficiency target of 25%

improvement in energy efficiency

by 2020 in accordance with Art. 3

of Directive 2012/27EU.

— measures consistent with Article 13

of Directive 2006/32/EC of the

European Parliament and of the

Council ( 3 ) on energy end-use

efficiency and energy services to

ensure the provision to final customers

of individual meters in so far as it is

technically possible, financially

reasonable and proportionate in

relation to the potential energy

savings.

YES Regulations related to measures under

Article 13 of Directive 2006/32/EC are:

The Energy Act (EA) and Ordinance No

16-334 for heat supply

http://www.mi.government.bg/bg/library/z

akon-za-energetikata-256-c25-m258-

2.html

http://www.mi.government.bg/bg/library/n

aredba-16-334-ot-6-april-2007-g-za-

toplosnabdyavaneto-404-c78-m260-3.html

For electricity - Art. 120 of EA;

For newly constructed multifamily

buildings - Ordinance № 15 of 28.07.2005

on technical rules and standards for design,

construction and operation of facilities and

Heating systems in multifamily

buildings with central heating in

Bulgaria until 1995. are performed

exclusively as two pipe, vertical

systems. In these installations,

radiators of various properties

located vertically above each other,

join the vertical part of the building

installation. For this type of

prevailing buildings, the only

technical possibility of measuring

the consumed thermal energy in

housing and its distribution is by the

installation of individual valves on

each radiator in the multifamily

buildings.

For newly build buildings, well

before the introduction of the

http://www.mi.government.bg/bg/themes/energiina-strategiya-na-republika-balgariya-do-2020-g-147-295.html



http://www.minfin.bg/bg/page/573

http://www.mi.government.bg/bg/library/zakon-za-energetikata-256-c25-m258-2.html



http://www.mi.government.bg/bg/library/naredba-16-334-ot-6-april-2007-g-za-toplosnabdyavaneto-404-c78-m260-3.html




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equipment for the generation, transmission

and distribution of heat

For district heating - Art. 139, para. 1; Art.

140, para. 1; Art. 140а to Art. 145 and Art.

156 of EA; Art. 43; Art. 52, Art. 1 to 5;

Art. 62 and Methodology for distribution

of heat for buildings - condominium,

Appendix to Art. 61 of Ordinance No 16-

334.

http://www.mi.government.bg/bg/library/n

aredba-15-ot-28-07-2005-g-za-tehnicheski-

pravila-i-normativi-za-proektirane-

izgrajdane-i-eksploa-405-c78-m260-3.html

Regulatory framework for billing by

energy distributors is in Art. 38 of the

Energy Efficiency Act (EEA).




Provisions relating to the general

conditions of the contracts approved by the

State Energy and Water Regulatory

Commission are spelled in Art. 150, para.

1 and Art. 149b of the EA



2.html

The rest of the information is contained in

requirements of the Directive, the

national legislation has introduced

the requirement for the design and

construction of horizontal heating

systems (Ordinance No 15 of

28.07.2005). For this type of

heating systems, the radiators for

each plot are with horizontal pipes

for each property and a technical

possibility is available for

individual measuring of the heating

energy consumed by each separate

property.

The requirements laid down in

Directive 2006/32/EC, including the

measuring of individual heat

consumption are further developed

and refined by Directive

2012/27/EU.

In item 12 of the preamble to

Directive 2012/27/EU it is stated

that provisions of Directive

2004/8/EC of November 2004

should be strengthened with regard

to the promotion of cogeneration

based on a useful heat energy

demand in the domestic energy

market and of Directive

2006/32/EC. In this sense, at

present, Bulgaria has introduced in

its legislation precisely those

"enhanced" - precise and detailed

http://www.mi.government.bg/bg/library/naredba-15-ot-28-07-2005-g-za-tehnicheski-pravila-i-normativi-za-proektirane-izgrajdane-i-eksploa-405-c78-m260-3.html











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the monthly reports of invoices provided to

customers of heat from the respective

district heating companies.

requirements of Directive

2012/27/EC.

4.3. Actions have been

carried out to promote the

production and

distribution of renewable

energy sources ( 4 ).

YES Transparent support schemes, priority

in grid access or guaranteed access

and priority in dispatching, as well as

standard rules relating to the bearing

and sharing of costs of technical

adaptations which have been made

public are in place consistent with

Article 14(1), Article 16(2) and 16(3)

of Directive 2009/28/EC of the


Council ( 4 ).

YES Art. 52, Art. 54 of the Renewable energy

Sources Act (RESA) (Promulgated SG,

issue 35/03.05.2011, amended and

supplemented SG 109 of 2013, effective

since 1.01.2014,


akon-za-energiyata-ot-vazobnovyaemi-

iztochnici-167-c25-m258-1.html

Ordinance for gathering and provision of

information through the National

Information System about the potential, the

production and consumption of renewable

energy in Bulgaria (SG 39/22.05.2012)

http://www.seea.government.bg/documents

/NAREDBA_RD16558_ot_8052012.pdf

The state has implemented the

requirements for transparent support

schemes. The requirement to provide

information to all stakeholders on the

support measure was introduced in the

Bulgarian legislation.

Art. 18, Art. 1, Art. 24, item 1, Art. 26,

http://www.mi.government.bg/bg/library/zakon-za-energiyata-ot-vazobnovyaemi-iztochnici-167-c25-m258-1.html



http://www.seea.government.bg/documents/NAREDBA_RD16558_ot_8052012.pdf

http://www.seea.government.bg/documents/NAREDBA_RD16558_ot_8052012.pdf


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para. 3, para. 4, para. 5 and Art. 30, Art. 6,

Art. 7 of RESA;

Art. 50, Art. 52 of Ordinance No. 3,

21.03.2013 on licensing of activities in the

energy sector (promulgated, SG. 33 of

5.04.2013)

Rules for Management of the Electricity

System (Promulgated, SG, issue 6 of

21.01.2014) /

Rules on the Electricity Distribution

Networks Management (Promulgated, SG,

issue 66 of 14.08.2007)

http://www.dker.bg/files/DOWNLOAD/P

RAVILA__upr_na_ees.pdf

http://www.dker.bg/files/DOWNLOAD/rul

e_el_16.pdf

The requirement to provide guaranteed grid

access and priority dispatch of electricity

from renewable sources are introduced into

the Bulgarian legislation.

Art. 22, Art. 23, Art. 27, Art. 29, Art. 52 of

RESA;

Art. 30, Art. 31 of the Energy Act

(Promulgated in SG, issue 107 of

9.12.2003, amended and supplemented

SG, issue 66 of 26.07.2013)

Ordinance No 1 of 18.03.2013 on the

http://www.dker.bg/files/DOWNLOAD/PRAVILA__upr_na_ees.pdf

http://www.dker.bg/files/DOWNLOAD/PRAVILA__upr_na_ees.pdf

http://www.dker.bg/files/DOWNLOAD/rule_el_16.pdf

http://www.dker.bg/files/DOWNLOAD/rule_el_16.pdf


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adjustment of electricity prices

(Promulgated, SG, issue 33 of 5.04.2013)



1.html

Methodology to offset the cost of the

public service and end suppliers resulting

from imposed public service obligations

for the purchase of electricity at

preferential prices from renewable energy

sources and high-efficiency combined heat

and electricity production (promulgated,

SG, issue 62 of 14.08.2012)

http://dker.bg/docsbg.php?d=8&subD=30

State has complied with the requirement of

public accessibility rules for bearing and

sharing of costs associated with grid

connection of power plants for electricity

production from renewable sources.

A Member State has adopted a

national renewable energy action plan

consistent with Article 4 of Directive

2009/28/EC.

YES National Action Plan for Energy from

Renewable Sources (NAPERS) was

adopted by the Council of Ministers of the

Republic of Bulgaria on January 9, 2013.

http://www.mi.government.bg/files/userupl

oads/files/eoos/plan_res_2013.pdf

Bulgaria has prepared and adopted

a National Action Plan for Energy

from Renewable Sources. The plan

was prepared on the model adopted

by Decision No C) 2009) 5174 of

the Commission, presented to the

European Commission and




http://dker.bg/docsbg.php?d=8&subD=30

http://www.mi.government.bg/files/useruploads/files/eoos/plan_res_2013.pdf

http://www.mi.government.bg/files/useruploads/files/eoos/plan_res_2013.pdf


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implemented.

6.1. Water sector: The

existence of a) a water

pricing policy which

provides adequate

incentives for users to use

water resources efficiently

and b) an adequate

contribution of the

different water uses to the

recovery of the costs of

water services at a rate

determined in the

approved river basin

management plan for

investment supported by

the programmes.

NO - In sectors supported by the

ERDF and the Cohesion Fund, a

Member State has ensured a

contribution of the different water

uses to the recovery of the costs of

water services by sector consistent

with the first indent of Article 9(1) of

Directive 2000/60/EC having regard,

where appropriate, to the social,

environmental and economic effects

of the recovery as well as the

geographic and climatic conditions of

the region or regions affected.

NO River basin management plans

http://www3.moew.government.bg/?show=

top&cid=66&lang=bg

I. River Basin Management Plans are

into force and reported to EC on

22.03.2010.

II. Water Act

http://www3.moew.government.bg/files/fil

e/Water/Legislation/Zakoni/ZAKON_za_v

odite.pdf

Fee tariff for water use, use of water object

and pollution


e/Water/Legislation/tarifi/Ttaksi_vodovz_p

olzv_zamyrs.pdf

The Tariff introduced fees for water use for

various purposes, which partly provides

contribution to water users for recovery of

costs for water services and partly - the

"polluter pays" principle.

Legislation in the water sector

http://www.moew.government.bg/?show=t

http://www3.moew.government.bg/?show=top&cid=66&lang=bg


http://www3.moew.government.bg/files/file/Water/Legislation/Zakoni/ZAKON_za_vodite.pdf



http://www3.moew.government.bg/files/file/Water/Legislation/tarifi/Ttaksi_vodovz_polzv_zamyrs.pdf



http://www.moew.government.bg/?show=top&cid=40


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op&cid=40

- The adoption of a river

basin management plan for the river

basin district consistent with Article

13 of Directive 2000/60/EC

NO River basin management plans

http://www3.moew.government.bg/?show=

top&cid=66&lang=bg

River Basin Management Plans are into

force and reported to EC on 22.03.2010.

6.2. Waste sector:

Promoting economically

and environmentally

sustainable investments in

the waste sector

particularly through the

development of waste

management plans

consistent with Directive

2008/98/EC, and with the

waste hierarchy.6.2.

Partially An implementation report as requested

by Article 11(5) of Directive

2008/98/EC has been submitted to the

Commission on progress towards

meeting the targets set out in Article

11 of Directive 2008/98/EC.

YES The report has been sent to the European

Commission on 30th of September 2013.

The existence of one or more waste

management plans as required under

Article 28 of Directive 2008/98/EC;

NO At present in Bulgaria a National

Programme for Waste Management 2009-

2013 is in place:


op&cid=376

The National Waste Management

Plan 2014-2020 is being prepared.

The existence of waste prevention

programmes, as required under Article

29 of Directive 2008/98/EC;

NO At present in Bulgaria the National

Programme for Waste Management 2009-

2013 is in effect.

The programme for prevention of

generating waste is to be a part of

the National Waste Management







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op&cid=376

Plan 2014-2020.

See TExAC 6.2.2.

Necessary measures to achieve the

targets on preparation for re-use and

recycling by 2020 consistent with

Article 11(2) of Directive 2008/98/EC

have been adopted.

NO Since 13.07.2012 the promulgated Waste

Management Act sets the targets and

responsibilities.


e/Waste/Legislation/Zakoni/ZUO.pdf

Measures for targets achievement

will be included in the new National

Waste Management Plan

See TExAC 6.2.2.

7.4. Development of

smart energy distribution,

storage and transmission

systems. The existence of

comprehensive plans for

investments in smart

energy infrastructure, and

of regulatory measures,

which contribute to

improving energy

efficiency and security of

supply.

NO — Comprehensive plans describing

the national energy infrastructure

priorities are in place that are:

— in accordance with Article 22 of

Directive 2009/72/EC and of Directive

2009/73/EC, where applicable, and

—consistent with the relevant regional

investment plans under Article 12 and

with the Union-wide ten-year network

development plan in accordance with

point (b) of Article 8(3) of Regulation

(EC) No 714/2009 of the European

Parliament and of the Council ( 6 )

and with Regulation (EC) No

715/2009 of the European Parliament

No

No

Yes

There is a national plan laying out the

priorities in gas infrastructure development

in Bulgaria and including the Bulgaria-

Serbia interconnector.

The Ten-year Network Development Plan

(TYNDP) of Bulgartransgaz under Article

22 of Directive 2009/72/EC for the period

2014-2022 can be accessed via the

following link:

http://www.bulgartransgaz.bg/files/userupl

oads/files/financial_reports/tyndp_2014_20

23_bg.pdf

IBS has been included in the Gas Regional

Investment Plans (GRIPs), as well as in the

Union-wide TYNDP in all their versions.

As regards financing, Competitiveness of

the Bulgarian Economy Operational

Programme is pointed out (page 22):

http://publ.com/a4yjmMw#22

The project for gas interconnection

Bulgaria-Serbia (IBS) is included

on p. 49, item 5.2.3, on top of page

39 is foreseen Bulgartransgaz

investment for connection to IBS.

On 23 September 2014 public

discussion with the stakeholders of

the 10-year Network Development

Plan (TYNDP) 2014-2023 of

Bulgartransgaz was held. It was

followed by closed meeting of the

State Energy and Water Regulatory

Commission on 8 October 2014.

After it, a letter requesting the

provision of additional information

was sent to Bulgartransgaz.

Bulgartransgaz have provided the

required additional information.

Approval of the TYNDP is part of

the process of certification of

Bulgartransgaz an an independent



http://www3.moew.government.bg/files/file/Waste/Legislation/Zakoni/ZUO.pdf

http://www3.moew.government.bg/files/file/Waste/Legislation/Zakoni/ZUO.pdf

http://www.bulgartransgaz.bg/files/useruploads/files/financial_reports/tyndp_2014_2023_bg.pdf



http://publ.com/a4yjmMw#22


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and of the Council ( 7 ), and

— compatible with Article 3(4) of

Regulation (EU) No 347/2013 of the


Council ( 8 );.

— Those plans shall contain:

— a realistic and mature project

pipeline for projects for which support

from the ERDF is envisaged;

— measures to achieve the objectives

of social and economic cohesion and

environmental protection, in line with

Article 3(10) of Directive 2009/72/EC

and Article 3(7) of Directive

2009/73/EC;

— measures to optimise the use of

energy and promote energy

efficiency, in line with Article 3(11)

of Directive 2009/72/EC and Article

3(8) of Directive

Yes

IBS is included in the first list of Projects

of Common Interest (PCI-s) that can be

reached via the following link:

http://ec.europa.eu/energy/infrastructure/p

ci/doc/2013_pci_projects_country.pdf

transmission operatior, which will

be completed by September 2015.

It is envisaged by the end of

January 2015 the project for a

decision for certification of

Bulgartransgaz EAD to be agreed

by SEWRC and notified to the

Comission. Final certification

decision to be adopted by

September 2015.

http://ec.europa.eu/energy/infrastructure/pci/doc/2013_pci_projects_country.pdf

http://ec.europa.eu/energy/infrastructure/pci/doc/2013_pci_projects_country.pdf


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1. The existence of

administrative capacity

for the implementation

and application of Union

anti-discrimination law

and policy in the field of

ESI Funds

YES Arrangements in accordance with the

institutional and legal framework of

Member States for the involvement of

bodies responsible for the promotion

of equal treatment of all persons

throughout the preparation and

implementation of programmes,

including the provision of advice on

equality in ESI fund-related activities;

YES -Protection against Discrimination Act

((http://www.kzd-

nondiscrimination.com/layout/index.php/la

yout-over-40-positions/normativni-

dokumenti/zakon-za-zashtita-ot-

diskriminacia) fully transposes EU

directives on equality: 2000/43/ЕC,

78/200/ЕC, 75/117/ЕEC, 97/80/EC and

76/207/EEC, and ensures the protection of

all citizens of the Republic of Bulgaria

against discrimination, while assisting in

the prevention of discrimination and

establishes measures for equal

opportunities.

- Commission for Protection against

Discrimination

Under the provisions of Article 40 of the

Protection against Discrimination Act, in

2005 the Commission for Protection against

Discrimination is created, which is an

independent specialized state body for

prevention of discrimination, protection

from discrimination and ensuring equal

opportunities. The Commission monitors

the implementation and compliance of

Bulgarian and international anti-

http://www.kzd-nondiscrimination.com/layout/index.php/layout-over-40-positions/normativni-dokumenti/zakon-za-zashtita-ot-diskriminacia






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discrimination rules governing equal

treatment and for its activities it is

accountable to the highest authority of the

legislature - the National Assembly of the

Republic of Bulgaria. Commission for

Protection against Discrimination (CPD) is

accredited body for human rights protection

to UN, with status "B" in relation to

responding to the Paris Principles.

-As a platform for consultation and

involvement of the authorities responsible

for anti-discrimination, the Commission

holds annually seminars with senior

officials from the central government - MoI,

MLSP, MoC, etc.., The judicial system -

judges and prosecutors, the territorial

municipal administrations, as well as

representatives of media and NGOs.

-To facilitate the active participation of

CPD in the equitable treatment of all people

in the preparation and implementation of

programs and activities of the EU, Rules of

Proceedings before CPD are adopted and

implemented An amendment of Protection

against Discrimination Act will be made

The Draft was approved by the Council of

Ministers by Decision № 735 of

11.22.2013, and is submitted to the

National Assembly on 25.11.2013, under №

302-01-46. The amendment will set new

minimum requirements for preferential

referral of CPD in order to implement the


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principle of equal treatment and prevention

of discrimination.

The shape of the consultation and

involvement is through participation in

various coordination procedures under the

Rules of Procedure of CoM and working

groups such as WG 13 "Social Policy and

Employment", etc.

According to Article 5, para. 4 of the

Decree of CoM No. 5 of January 18, 2012

to develop strategic and program

documents of the Republic of Bulgaria to

manage funds under the Common Strategic

Framework of the European Union for the

programming period 2014-2020, the

composition of the thematic working

groups for program development for the

new programming period must include

representatives of the CPD and national

representative organizations of and for

people with disabilities recognized by the

Council of Ministers under the Integration

of Persons with Disabilities Act;

In all programs in the new programming

period the horizontal principles of gender

equality and non-discrimination will be

observed.


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Arrangements for training for staff of

the authorities involved in the

management and control of the ESI

Funds in the fields of Union anti-

discrimination law and policy.

YES - This criterion is implemented at several

levels: through the Training Plan of the

Training Centre of MLSP, project activities

of CPD, the activities of the Agency for

People with Disabilities (APD), the

Ombudsman, NGOs, social partners and

other stakeholders, aimed at raising

awareness and capacity in the field of law

and anti-discrimination policy.

- CPD annually conducts training on EU

legislation and anti-discrimination policy

through thematic workshops where as guest

speakers representatives of the EU

institutions are invited.

Implementation of the Convention on the

Elimination of All Forms of Discrimination

against Women and its Additional Protocol

is within the training programmes at the

National Institute of Justice regarding

safeguards against discrimination

A public lecture was held with the

participation of a judge in the EC Court of

Justice in Luxembourg on "The practice of

the Court of Justice on the application of

the Charter of Fundamental Rights of the

EU. Application of the Charter in the

Member States.". The program of the event

included anti-discrimination legislation and

relevant case-law of the EC Court of

Justice. In the public lecture were involved

63 participants /48 judges, 9 prosecutors,


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investigators, 2 representatives of the

Commission for Protection against

Discrimination, one representative of the

Sofia University and one representative of

the Union of Jurists in Bulgaria/.

- The workshops cover a wide area of

responsible employees from the central

government authorities - MoI, MLSP, MES,

MoC etc., the territorial municipal

administrations as well as representatives of

the media and NGOs.

- Within the scope of project activities

MLSP conducts training regarding anti-

discrimination policies and relevant

legislation. This includes training for

social partners, employers' organizations,

the structures of the Employment Agency

(EA), the structures of the Agency for

Social Assistance (ASS) , trade unions,

employers, NGOs, etc., aiming at a real

impact and change on the labor market in

the direction of reducing inequality under

all discriminatory signs.

Five workshops were held within the

project "Combating discrimination - of a

just society

(JUST/2012/PROG/AG/AD/3710)

program PROGRESS (2007-2013).

Another area in which the MLSP is


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operating is conducting trainings for

prevention of discrimination in homes for

children deprived of parental care.

In March, were prepared the third

roundtable on Central region and training

seminars in Plovdiv and Burgas for the

teams working with children in

institutional care.

In March and April 2014 were held two

roundtables at regional level, with the

participation of employers, young people

leaving institutions for children, local

government, regional structures of the

Employment Agency and the Agency for

social support. Roundtables aimed to

change public attitudes and the realization

of the labor market for young people in

social institutions who are in their final

year of study.

In april 2014 a National Campaign was

held to raise awareness and increase

public sensitivity in relation to Council

Directives 2000/43/EC and 2000/78/EC -

in Kardzhali and Balchik. Project

activities were completed with organizing

the final conference in Sofia during the

month of May 2014.

2. The existence of





Member States for the involvement of

bodies responsible for gender equality

YES According to Art. 20 Directive 2006/54/EC,

the Commission for Protection against

Discrimination is defined as a national

With Order No РД01-727 of

09.27.2013 of the Minister of

Labour and Social Policy was


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and application of Union

gender equality law and

policy in the field of ESI

Funds

throughout the preparation and

implementation of programmes,

including the provision of advice on

gender equality in ESI Fund-related

activities;

equality body.

-Protection against Discrimination Act (in

force since 01.11.2004) fully transposes EU

directives on equality: 2000/43/ЕC,

78/200/ЕC, 75/117/ЕEC, 97/80/EC and

76/207/EEC, and ensures the protection of

all citizens of the Republic of Bulgaria

against discrimination, while assisting in

the prevention of discrimination and

establishes measures for equal

opportunities. Under the provisions of

Article 40 of the Protection against

Discrimination Act, in 2005 the

Commission for Protection against

Discrimination is established, which is an

independent specialized state body for

prevention of discrimination, protection

from discrimination and ensuring equal

opportunities. The Commission monitors

the implementation and compliance of

Bulgarian and international anti-

discrimination rules governing equal

treatment and for its activities it is

accountable to the highest authority of the

legislature - the National Assembly of the

Republic of Bulgaria. Commission for

Protection against Discrimination (CPD) is

accredited body for human rights protection

to UN, with status "B" in relation to

responding to the Paris Principles.

The state policy of the Republic of Bulgaria

established an interdepartmental

working group, which aim is to

prepare a draft law on gender

equality.

The Draft addresses the

commitments of the Republic of

Bulgaria in international and

European treaties to which it is

party.

The draft law defines the

institutions and mechanisms for

the implementation of state policy

on gender equality and regulation

of opportunity, incl. regulates the

institutional mechanism for gender

equality.

Ministers adopted Decree № 104

of 10 May 2014 amending the

Decree № 313 of the Council of

Ministers in 2004 to establish the

National Council on Equality

between women and men, the

Council of Ministers.

The Decree amends the Rules for

the structure and organization of

the National Council on Equality

between women and men to the

Council of Ministers. The Rules

are adopted in the annex to the

Art. 2 of the Decree № 313 of


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in the field of gender equality and non-

discrimination on the ground of "sex" is a

horizontal policy which is coordinated by

the Ministry of Labour and Social Policy at

national level. A sustainable model for

cooperation is achieved between the

institutions and the social partners and civil

society through their participation in the

National Council on Equality between

Women and Men at the Council of

Ministers. Chairperson of the Council is the

Minister of Labour and Social Policy. The

strategic document of the Bulgarian

government, defining the policy framework

is the National Strategy for Promotion of

Gender Equality for the period 2009 - 2015,

which was adopted in accordance with the

recommendations of the Council of Europe,

the strategic documents of the European

Union and the principles underlying the UN

conventions on human rights and women's

rights. In fulfillment of this basic strategic

document, each year, the Ministry of

Labour and Social Policy develops annual

national action plans for the promotion of

equality between women and men

involving in the consultation process all

responsible authorities for the

implementation of gender equality.

Through national plans it is aimed to

consolidate the efforts of all institutions for

the implementation of measures and

activities to achieve equality between

2004

Amendments to the Rules relating

to reflect structural changes in the

Council of Ministers and to

strengthen national institutional

mechanism for the implementation

of the policy on equality between

women and men.

According to Article 5, para. 4 of

the Decree of CoM No. 5 of

January 18, 2012 to develop

strategic and program documents

of the Republic of Bulgaria to

manage funds under the Common

Strategic Framework of the

European Union for the

programming period 2014-2020,

the composition of the thematic

working groups for program

development for the new

programming period must include

representatives of the CPD.

In addition to all programs in the

new programming period the

horizontal principles of gender

equality and non-discrimination

will be observed.


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women and men in all spheres of economic,

political and social life. In fulfillment of the

commitments of the Republic of Bulgaria to

the European and international treaties to

which it is a party, and the adopted by the

Council of Ministers Decision No 438 of 25

July 2013 Action Plan for the

implementation of the final

recommendations to the Republic of

Bulgaria made by the UN Committee for

the Elimination of Discrimination against

Women, a Gender Equality Act will be

developed. The aim is to create legal

guarantees concerning measures to ensure

equal opportunities for women and men and

to strengthen institutional mechanisms /

structures for implementation of the state

policy in this area. The Action Plan is

developed by an interdepartmental working

group with the participation of

representatives of all ministries, agencies,

public authorities, social partners, non-

governmental organizations working in the

field of gender equality and organizations

for protection of human rights. The

following measures are provided for based

on the recommendations made:

- preparation of a Draft Law on

Gender Equality;

- strengthening the National

Mechanism on Gender Equality;

- activities to overcome gender

stereotypes and discriminatory


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practices;

- thematic studies and analyses;

- of magistrates, investigating

police officers, teachers and

social workers; activities to

promote the participation of

women in different spheres of

social life, etc.




Funds in the fields of Union gender

equality law and policy as well as on

gender mainstreaming.

YES The Action Plan for the implementation of

the final recommendations to the Republic

of Bulgaria made by the UN Committee on

the Elimination of Discrimination against

Women includes the following measures in

accordance with the recommendations, such

as:

training for capacity building of

civil servants on gender equality,

including laws and policies on

gender equality;

conducting awareness and

information activities, incl.

among women from

disadvantaged groups to promote

the UN Convention on the

Elimination of All Forms of

Discrimination against Women

and others.

In the catalog of the Center for

Human Resource Development

and Regional Initiatives, to MLSP

2014 is set to conduct a two-day

training in July on "Practical

guidelines for the implementation

of the UN Convention on the

Elimination of All Forms of

Discrimination against Women" .

The training is designed for senior

management and expert positions

in MLSP and other central and

local administrations, social

partners and NGOs.

The objectives of the training are:

Understanding the UN Convention

on the Elimination of All Forms of

Discrimination against Women,

with final recommendations to the

Republic of Bulgaria made by the

UN Committee on the Elimination


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of All Forms of Discrimination

against Women (CEDAW) and the

resulting obligations of the

Republic of Bulgaria;

Improve the capacity of public

administration to implement the

UN Convention on the Elimination

of All Forms of Discrimination

against Women and related

documents;

Building skills to implement an

integrated approach to the

implementation of the Action

Plan;

Improve administrative

competence.

Yet to be fully developed course

content for training.

3. The existence of



and application of the

United Nations

Convention on the rights

of persons with

disabilities (UNCRPD) in

the field of ESI Funds in

accordance with Council

Decision 2010/48/EC ( 1 )



Member States for the consultation

and involvement of bodies in charge

of protection of rights of persons with

disabilities or representative

organisations of persons with

disabilities and other relevant

stakeholders throughout the

preparation and implementation of

programmes;

YES On 26.01.2012, the National Assembly of

the Republic of Bulgaria adopted the Law

on ratification of the Convention on the

Rights of Persons with Disabilities, which

is the first major human rights treaty of the

21st century policy for people with

disabilities.

By Decision No 868 of 19 October 2012,

the Council of Ministers adopted an Action

Plan containing measures to bring the

Republic of Bulgaria legislation and

In implementing the Action Plan,

an interdepartmental working

group is established to develop an

independent mechanism under Art.

33.2 of the UN Convention on the

Rights of Persons with

Disabilities, including the

establishment of a body and

implementation of an independent

mechanism.

The working group on


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policies for people with disabilities in

accordance with the provisions of the

Convention on the Rights of Persons with

Disabilities (2013 -2014).

The Action Plan aims to take effective steps

for the implementation of the Convention

on the Rights of Persons with Disabilities:

Identify key areas in need of legal

reform and take consistent steps on input

requirements of the Convention;

Define and implement a coordination

mechanism and monitoring mechanism

for the implementation of the

Convention, with clearly defined roles,

tasks and responsibilities of the involved

institutions;

Capacity-building of government

officials and experts from different fields

to correctly apply the provisions of the

Convention;

Widely promote the principles of the

Convention in the public and civil society

involvement in the process of its

implementation;

Provide periodic update of activities to

implement the Convention and monitor

the application of the provisions of the

Convention.

coordination for the

implementation of the Action Plan,

development of a coordination

mechanism for monitoring and

independent monitoring

mechanism under Article 33 of the

Convention, as well as for

determination of implementation

authorities continues its operation.

The Action Plan identifies the

participants from various

institutions, as well as the non-

government sector in the field of

integration of people with

disabilities.

The plan shows the various steps

governing leading institutions and

their partners in the development

of concepts for regulatory changes

in various areas covered by the

Convention.

Currently, a review has been

carried out. Therefore were

developed and adopted Concepts

for legislative changes in relation

to the application of article 11 -

Situations of risk and humanitarian

emergencies, article 12 - Equality

before the law, article 14 -

Freedom and personal security,

article 18 - Freedom of movement

and nationality, article 19 -


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Independent living and inclusion

in the community and article 24 -

Education from the UN

Convention on the Rights of

Persons with Disabilities and in

implementation of the Action Plan.

The adoption of a concept in terms

of accessibility to the built

environment (article 9) is

forthcoming.

The plan regulates accordingly the

deadlines for implementation of

the measures set out in it.

By Orders No РД01-186 of

28.02.2013, subsequent Order

РД01-353 of 04.23.2013 on the

cancellation of the first and Order

РД01-602 of 08.02.2013 on the

amendment and supplementation

Order РД01-353 of 23.04.2013 of

the Minister of Labour and Social

Policy, an interdepartmental

working group is established on

coordination of the

implementation of the Action Plan,

containing measures to bring the

legal framework and policies for

people with disabilities, in

accordance with the provisions of

the UN Convention on the Rights

of the Persons with Disabilities in


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the Republic of Bulgaria

(hereinafter referred to as the

Coordination Group). The

Coordination Group includes

representatives of all government

institutions and NGOs involved in

the policy for people with

disabilities.

Regarding civil society

representatives, in particular

organizations representing people

with disabilities in the Republic of

Bulgaria to cooperate in the

development and implementation

of policy on the integration of

people with disabilities, a National

Council for the Integration of

People with Disabilities is set up

to the Council of Ministers,

chaired by the Minister of Labour

and Social Policy, and deputy

chairpersons - the Deputy Minister

of Labour and Social Policy and

the Deputy Minister of Health and

a representative of the nationally

represented organizations of

people with disabilities and a

representative of the nationally

representative organizations for

people with disabilities, selected

on a rotating basis for a period of

one year. The National Council for

the Integration of People with


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Disabilities is an advisory body to

the Council of Ministers, which

shall consist of : representatives of

the state, nominated by the

Council of Ministers, nationally

representative organizations of and

for people with disabilities,

nationally representative

organizations of employees,

nationally representative

organizations of employers and the

National Association of

Municipalities in Republic of

Bulgaria. National Council for the

Integration of People with

Disabilities opinions on all draft

legislation, strategies, programs

and plans affecting the rights of

people with disabilities and their

integration.

According to Article 5, para. 4 of

the Decree of CoM No. 5 of

January 18, 2012 to develop

strategic and program documents

of the Republic of Bulgaria to

manage funds under the Common

Strategic Framework of the

European Union for the

programming period 2014-2020,

the composition of the thematic

working groups for program

development for the new

programming period must include


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mandatory representatives of the

CPD and of the nationally

representative organizations of and

for people with

disabilities, recognized by the

Council of Ministers under the

Integration of People with

Disabilities Act.

In addition, all programs in the

new programming period will

include the horizontal principles of

gender equality and non-

discrimination.




Funds in the fields of applicable

Union and national disability law and

policy, including accessibility and the

practical application of the UNCRPD

as reflected in Union and national

legislation, as appropriate;

YES The Action Plan for the purposes of Art. 8

of the Convention "Raising awareness and

changing attitudes on the rights of people

with disabilities" operational objective is set

"Increasing the capacity of local, regional

and central government and others related

to the provisions of the UN Convention." In

this connection seminars are envisaged for

employees of public administration, the

judiciary, doctors and medical

professionals, seminars for teaching staff,

other forms for people with disabilities, etc.

On 11-12 November 2013 in Sofia, a

seminar was held with international

participation on the Convention on the

Rights of Persons with Disabilities and the


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Action Plan for its implementation. It was a

place to exchange experiences and best

practices internationally and to present the

Bulgarian experience in the implementation

of the Convention on the Rights of Persons

with Disabilities. The initiative provided an

opportunity to raise the capacity of the

representatives of the administration on the

trends in the policy for people with

disabilities in the context of the

implementation of the Convention on the

Rights of Persons with Disabilities in

Europe and it will ensure implementation of

the measures in the two-year Action Plan

for Implementation of the Convention.

Expansion of the knowledge for the

national institutional framework for the

implementation of the UN Convention on

the Rights of Persons with Disabilities - a

mechanism for coordination, monitoring

and independent monitoring; Studies and

exchange of foreign experience in reporting

to the UN Committee on the Rights of

Persons with Disabilities - principles,

approaches, sources of information,

methods of data processing, analyses;

comprehensive information was received on

the guidelines for the preparation of the

national reports as well as acquiring

practical knowledge and skills approaches

and techniques for the preparation of the

national reports. On 12 and 13 June 2014,

the Center for Human Resource


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Development and Regional Initiatives of

MLSP was held a training of officials from

local, regional and central government and

NGO experts working on issues for people

with disabilities "Application the UN

Convention on the Rights of persons with

Disabilities and the participation of local,

regional and central government.". Purpose

of the training was to increase the capacity

of the staff of local, regional and central

government on the provisions of the

Convention on the Rights of Persons with

Disabilities and update their knowledge

related to integration policies for people

with disabilities.

Arrangements to ensure monitoring of

the implementation of Article 9 of the

UNCRPD in relation to the ESI Funds

throughout the preparation and the

implementation of the programmes.

YES The Action Plan for the purposes of Art. 8

of the Convention "Raising awareness and

changing attitudes on the rights of people

with disabilities" operational objective is set

"Increasing the capacity of local, regional

and central government and others related

to the provisions of the UN Convention." In

this connection seminars are envisaged for

employees of public administration, the

judiciary, doctors and medical

professionals, seminars for teaching staff,

other forms for people with disabilities, etc.

On 11-12 November 2013 in Sofia, a

seminar was held with international

participation on the Convention on the

Rights of Persons with Disabilities and the


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Action Plan for its implementation. It was a

place to exchange experiences and good

practices internationally and to present the

Bulgarian experience in the implementation

of the Convention on the Rights of Persons

with Disabilities. The initiative provided an

opportunity to raise the capacity of the

representatives of the administration on the

trends in the policy for people with

disabilities in the context of the

implementation of the Convention on the

Rights of Persons with Disabilities in

Europe and it will ensure implementation of

the measures in the two-year Action Plan

for Implementation of the Convention.

Expansion of the knowledge for the

national institutional framework for the

implementation of the UN Convention on

the Rights of Persons with Disabilities - a

mechanism for coordination, monitoring

and independent monitoring; studies and

exchange of foreign experience in reporting

to the UN Committee on the Rights of

Persons with Disabilities - principles,

approaches, sources of information,

methods of data processing, analyses;

comprehensive information was received on

the guidelines for the preparation of the

national reports as well as acquiring

practical knowledge and skills approaches

and techniques for the preparation of the

national reports.


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4. The existence of

arrangements for the

effective application of

Union public procurement

law in the field of the ESI

Funds.

Partially Arrangements for the effective

application of Union public

procurement rules through

appropriate mechanisms;

NO National Strategy for the Development of

the Public Procurement Sector in Bulgaria

for the period 2014 – 2020.

http://www.government.bg/cgi-bin/e-

cms/vis/vis.pl?s=001&p=0211&n=99&g

Adopted with CoM Decision

498/11.07.2014.

The strategy forsees measures for

improving effectiveness in awarding of

contracts and establish guarantees of

compliance with EU legislation in the field.

EU legislation on public procurement

(Directives 2004/18/EC, 2004/17/EC,

Directives 89/665/EEC, 92/13/EEC and

2007/66/EC and 2009/81/EC and the

Regulations associated with their

implementation) has been fully

implemented in the PPA. Different from the

PPA, the regulations on public procurement

contain:

• Rules for the Implementation of the PPA;

• Ordinance on competitions

projects in the planning and investment

design, approved by Decree № 75 of 2009

of the Council of Ministers, promulgated

SG. No. 26 of 2009;

• Ordinance under Art. 13, para 3 of the

Measures in this direction will be

further strengthened.

It provides measures to use a

uniform practice among the Public

Procurement Agency, MA of OP,

National Audit Office, SFIA, CPC

and SAC and coordination of their

activities. It will also include

measures to further expand the

scope of the ex-ante control by the

Public Procurement Agency for

effective cooperation between

supervisory authorities in order to

standardize the practices and

streamlining ex-post control.

There will also be measures to

increase the effectiveness of

judicial protection.

http://www.government.bg/cgi-bin/e-cms/vis/vis.pl?s=001&p=0211&n=99&g

http://www.government.bg/cgi-bin/e-cms/vis/vis.pl?s=001&p=0211&n=99&g


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Public Procurement Act (PPA) for the

criteria and procedures for determining the

presence of vital national interests in

security and defense within the meaning of

Art. 346 of the Treaty on the Functioning of

the European Union (TFEU) and the

procedures to sign contracts, approved by

Decree № 180 of 22.08.2013, promulgated

SG № 75 of 2013.

http://www.aop.bg/fckedit2/user/File/bg/No

rmativna%20baza/ZOP_15_02_2013.pdf


rmativna%20baza/PPZOP_09032012.pdf


rmativna%20baza/Naredba_konkursi.pdf


rmativna%20baza/Naredba_27082013.pdf

In relations to amendments to the public

procurement legislation - the PPA in effect

has been adopted in 2004. Since then five

major amendments are made. Three of them

introduce the applicable European

Directives (Directive 2004/17/EC and

Directive 2004/18/EC, Directive

2007/66/EC and Directive 2009/81/EC),

while the other two - the preliminary

control by the Public Procurement Agency

and the approved government concept

related to changes in public procurement

legislation. Apart from those, a number of

amendments have been made that comprise

specific provisions of the law. The

http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/ZOP_15_02_2013.pdf


http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/PPZOP_09032012.pdf

http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/PPZOP_09032012.pdf

http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/Naredba_konkursi.pdf

http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/Naredba_konkursi.pdf

http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/Naredba_27082013.pdf

http://www.aop.bg/fckedit2/user/File/bg/Normativna%20baza/Naredba_27082013.pdf


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definition of the public law organization in

the PPA is in full compliance with the

applicable directives. Public law

organizations are specifically regulated in

Art. 7 § 3 of the PPA as the term is defined

in § 1, item 21 of the Additional provisions

to the PPA.

In terms of institutional arrangements -

there are several bodies that operate in the

field of public procurement. These are:

• Public Procurement Agency - a national

body which supports the Minister of

Economy and Energy to implement the

policy in the field of public procurement,

issues methodological guidelines under the

PPA, ex-ante control over certain

procedures, etc.

• OPs Managing Authoritie who also

supervises the public procurement

procedures and gives guidance to

contracting authorities - beneficiaries on the

operational programs.

• Bulgarian National Audit Office and the

Public Financial Inspection Agency -

bodies to carry out further control over the

implementation of the PPA.

• CPC and SAC - appeal bodies that settles

disputes on the legality of the public

procurement procedures.

Although some mechanisms for imposing a

uniform practice, it is necessary to work for

a uniform interpretation of the law by those


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bodies.

There have been introduced different forms

of control at all stages of the public

procurements, including at the stage of their

implementation, as well as procedures for

the imposition of a uniform practice.

Since 2009, the Public Procurement Agency

exercises ex-ante control over procedures

for awarding public contracts financed in

full or in part by the EU funds (Art. 19, para

2, item 22 and Art. 20a of the PPA). The

amendments to the Public Procurement Act,

in force since 26.02.2012, this control is

carried out in two phases - before and after

the announcement of the procedure, as there

was introduced a mechanism for feedback

by monitoring the implementation of the

recommendations made.

Pursuant to Art. 19, para 2, item 1 of the

PPA, the Executive Director of the Public

Procurement Agency issues a general

methodological guidance on the application

of the law and its implementing rules.

When these guidelines are agreed with the

controlling authorities under law -

Bulgarian National Audit Office and the

State Financial Inspection Agency (SFIA),

they become mandatory for them in

carrying out their checks.

Methodological guidelines are published on

the Public Procurement Portal.


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http://rop3-

app1.aop.bg:7778/portal/page?_pageid=93,

1&_dad=portal&_schema=PORTAL

Article 123, para 1 of the PPA provides that

the Bulgarian National Audit Office and the

State Financial Inspection Agency shall

carry out further control over the contracted

public procurements. PPA provides an

administrative penalty part (art. 127 - Art.

133 of PPA). It provides for violations for

which the contracting authorities are

imposed with fines.



Every Ops Managing Authority provides a

procedure for ex-ante, ongoing and ex-post

control concerning the public procurement

procedures.

Measures have been taken to address the

main types of errors found in procurement,

as follows:

Decree № 134 of the Council of Ministers

of 5.07.2010 introduces a Methodology for

determining financial corrections to be

applied to expenses associated with the

implementation of operational programs co-

financed by the structural instruments of the

European Union, the European Agricultural

http://rop3-app1.aop.bg:7778/portal/page?_pageid=93,1&_dad=portal&_schema=PORTAL






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Fund for Rural Development and the

European Fisheries Fund. The authorities

responsible for the implementation of the

methodology are the contracting authorities

(MA/ IB) under the operational programs

financed by SCF RDP OP ―Fisheries ― and

the audit bodies on SCF, EAFD and EFF.

Decree № 18 of the Council of Ministers of

4.02.2003 establishes a Council to

coordinate the fight against infringements

affecting the financial interests of the

European Union.

Decree № 285 of the Council of Ministers

of 30.11.2009 adopts the Ordinance laying

down the procedures for the administration

of irregularities in funds, instruments and

programs financed by the European Union.

http://www.eufunds.bg/bg/page/119

Instructions issued by the Minister of

Finance - ДНФ 7/22.12.2010 regulates the

process associated with the write-off and

recovery of undue payments and

overpayments and unduly or improperly

spent funds on projects co-financed by the

Structural and Cohesion Funds of the

European Union.


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The guidelines are published at:

http://www.minfin.bg/bg/page/10?q=%D0

%94%D0%9D%D0%A4

OPs Managing Authorities keep records of

financial corrections imposed in the

implementation of public procurement

procedures. Each MA disposes of specific

employees who have in their job

descriptions responsibilities on public

procurement.

The Law Amending and Supplementing the

PPA, promulg. SG, issue 40, 2014, in force

since 01.07.2014, extends of the ex-ante

control carried out by the Public

Procurement Agency regarding procedures

for public works contracts financed with

funds from the national budget and above a

certain threshold.

PPA regulates the two-instance appeal of

the decisions of contracting authorities

issued in relation to procedures for the

award of public contracts. First instance is

the Commission for Protection of

Competition, which is an administrative

body, and the second and final instance is

the Supreme Administrative Court. There is

a two months period for both instances to

take a decision. In terms of the CPC –

there is no delay in hearing the cases. In

terms of SAC – there is some delay, taking

http://www.minfin.bg/bg/page/10?q=%D0%94%D0%9D%D0%A4

http://www.minfin.bg/bg/page/10?q=%D0%94%D0%9D%D0%A4


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into account that the statutory one month

period to rule is inconsistent with the rules

of procedure for dealing with cases of this

Court.



The planned action "Review of the appeal

system and proposals for its optimization

(eg. Safeguards against abuse of the right of

appeal, etc.)" has been completed.

Received were letters from the responsible

authorities (CPC and SAC) with proposals

to streamline the system of appeals. With

the suggestions taken the implementation of

activities 14.1, measure 14 of the

Implementation Plan of the National

Strategy for development of the sector

procurement in Bulgaria for the period

2014-2020 year will be accepted as

completed.

Proposals of CPC and SAC will be

discussed in connection with the

preparation of new legislation on public

procurement.

Arrangements which ensure

transparent contract award

procedures;

YES http://rop3-



Measures in this direction will be

further strengthened. In this

connection, regarding the

introduction of e-procurement – in







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http://rop3-


1488254&_dad=portal&_schema=PORTA

L&url=687474703A2F2F7777772E616F70

2E62672F657365617263685F7070322E70

6870




rmativna%20baza/PPZOP_09032012.pdf

http://rop3-



Contracts with a value below the thresholds

for applicable European directives are

awarded under procedure provided for in

the PPA (art. 14, para 1 of the PPA). The

procedure is similar to that set out in the

European Directives, with some

exemptions.

For the award for contracts of very low

values, the PPA provides a procedure that

respects the principle of publicity and

transparency (Article 101a -101 g of the

PPA). According to this procedure, the

contracting authorities are required to

collect bids by publishing public calls on

the Public Procurement Portal, which is

supported by the Public Procurement

the National Strategy for the

Development of the Public

Procurement Sector in Bulgaria for

the period 2014 – 2020 envisages

by the end of 2016 to introduce

entirely electronic communication

to the stage of e-offer, including.

For this purpose, a contract for

services was signed between the

European Bank for Reconstruction

and Development (EBRD) and the

Ministry of Economy and Energy,

which was ratified by the 42th

National Assembly, by law,

adopted on 24 January 2014,

promulgated SG No. 11 2014. As

a result of the implementation of

the contract, it will be proposed a

model for e-procurement based on

European best practices and

consistent with national

specification.

http://rop3-app1.aop.bg:7778/portal/page?_pageid=93,1488254&_dad=portal&_schema=PORTAL&url=687474703A2F2F7777772E616F702E62672F657365617263685F7070322E706870














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Agency. There is a minimum period for

public access to the call, which may not be

shorter than 7 days. Thus, all stakeholders

have the opportunity to see the contracts

which the contracting authorities intend to

award.

Decree № 69 of 11 march 2013 provides

the conditions and procedures for

determining the contractor by candidates for

grants or beneficiaries of contracted grants

from the Structural Funds and the Cohesion

Fund of the European Union, Joint

Operational Programme ―Black Sea Basin

2007 - 2013", financed by the European

Instrument for Neighbourhood and

Partnership, Financial Mechanism of the

European Economic Area and Norwegian

Financial Mechanism.

The principle of publicity and transparency

is also guaranteed by the Public

Procurement Register (PPR), which is

maintained by the Public Procurement

Agency (Article 21 - 22a of the PPA).

The Register is part of the Public

Procurement Portal and is a unified

electronic database, which contains

information about all open public

procurement procedures, the results of their

award and implementation. Besides the

information required under the European

directives and regulations (notice for OP,

contract information, etc.). PPR also


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contains information that stems from the

national requirements (information on the

implementation of the contract, the decision

to negotiate without notice, information on

the progress of appeal). http://rop3-



The Public Procurement Portal also

contains public calls based on which

contracting authorities collect bids under

Art. 101a – 101g of PPA.

http://rop3-



L&url=687474703A2F2F7777772E616F70

2E62672F657365617263685F7070322E70

6870

Contracting authorities are able to provide

through the Public Procurement Portal

documentation electronically, to exchange

questions and answers with the participants

electronically and publish clarifications.

Through the Public Procurement Portal is

given the opportunity to fully communicate

in electronic form between the participants

and contracting authorities, through to

preparation and submission of the bid.

http://rop3-
















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PPA regulates a number of additional

measures relating to publicity and

transparency. Some of them are related to:

the ability to attract external persons as

members of the committees who are from a

list maintained by the Public Procurement

Agency, public opening of tenders and

envelopes with the price offered, the

announcement of the evaluation of tenders

by other indicators - under criterion "most

economically advantageous tender",

publication of information on opening

negotiated procedures without notice and

for their awarding, posting opinions on

progress monitoring of negotiated

procedures without notice and information

on the implementation of contracts, etc.

http://rop3-



L&url=687474703A2F2F7777772E616F70

2E62672F657365617263685F7070322E70

6870

According to the recent amendments in the

Public Procurement Act, promulgated. SG.

40 of 2014, contracting authorities are

obliged to publish at its buyer profile all

documents related to the implementation of

these procedures - procurement contracts,

additional agreements thereto, information

about each payment, the public calls, the








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opinions of the Executive Director of the

Agency on requests of the contracting

authority and other useful information. The

obligation to publish these documents is set

in Art. 22b of the PPA and enters into force

from 10.01.2014.

Arrangements for training and

dissemination of information for staff

involved in the implementation of the

ESI funds;

NO •According to reports of the Public

Procurement Agency and OPs Managing

Authorities, a number of suitable trainings

for MA experts are provided on the

effective implementation of the public

procurement legislation, avoidance of the

risk of imposing financial corrections and

administrative penalties in the conduct of

award procedures.

•According to information from OPs

Managing Authorities through their

websites they provide to interested parties

the necessary information, incl. via

developed documents, manuals,

instructions, handbooks, etc. in the field of

public procurement.

•In the National Strategy for the

• For all operational

programs financed by the

Structural and Cohesion Fund is

used a unified Management

Information System (MIS). The

system is fully implemented as a

web based application and stores a

complete history of all changes in

the data and enables the generation

of historical references and full

traceability of the chronological

sequence of changed records, each

of which contains evidence of

actions performed.

• Within State Fund

Agriculture was developed and is

currently functioning an Integrated

Administration and Control

System (IACS). The access,

operation and storage of

information in the system is

applied in accordance with the

information policies of State Fund


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Development of the Public Procurement

sector it is envisaged to include activities

related to the training of persons involved

in the preparation and conduct of public

procurement procedures, as well as officials

from the Public Procurement Agency and

the OPs Managing Au thorities.

Public Procurement Agency supports

centralized information system (Public

Procurement Portal), which gives access to

all aspects of public procurement. It

provides information on:

• legislation in the field of public

procurement;

• Public Procurement Register (PPR);

• general methodological guidelines

concerning the application of the law;

• issued practical guidance related to

completing the document templates, batch

creation and a unique PPR number, sending

information to the agency, etc.;

• list of the entities to be used as external

experts;

• published public calls;

• opinions of the preliminary control of

negotiated procedures without notice;

Agriculture.

Information and Systems for

Management of EU funds

Directorate to the Administration

of the Council of Ministers

supports a Single Information

Portal through which information

is provided for all operational

programs, sample documents, calls

for project proposals, etc.

Information from the Central

Coordination Unit on the

trainings related to public

procurement in MAs of OPs

(2013):

For MA of OPHRD were

conducted 10 training sessions, the

total number of trained employees

is 115.

For IB – Employment Agency

were conducted 3 trainings, the

total number of trained employees

is 10.

For IB - ASA is conducted 1


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• other information.

The National Strategy for the Development

of the Public Procurement Sector in


envisages measures for effective

cooperation between the authorities

responsible for functions related to the

methodology and control of public

procurement with a view to establishing a

uniform practice.

training, the total number of

trained employees is 2.

For IB - MES were conducted 11

training sessions, the total number

of trained employees is 11.

From February to October 2013

were 65 times in Bulgaria or

abroad of experts in the MA and

IB OPHRD participated in

trainings on implementation of the

PPL and introduction to current

developments within the European

procurement rules. For November

no planned training on the topic.

Through official correspondence

and the website of the MA is

submitted required information

through manuals, instructions and

guides. In Handbook of HRD OP

is the declaration of the officers

familiar with the changes;

guidelines have been prepared

with the most common errors in

the award.

In 2012 16 employees of the OPE

MA participated in 45 training

courses on to procurement issues

and from the IB 30 employees

participated in three training


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sessions.

Since the beginning of 2013 was

conducted on public procurement

were trained 16 experts from the

MA in 4 courses and 4 experts

from IB in 1 course.

In 2014 5 experts from GD ―OPE‖

at MOEW have participated in 3

trainings on public procurement.

In the matters of PP is engaged

department ―Ex-post control and

procedural representation‖ after

the restructuiring of IB and MA of

OPE into GD ―OPE‖ in the end of

March 2914.

MA OPE has posted on its web

site a number of guidelines and

supporting documents to

beneficiaries related to public

procurement (mainly published in

"Documents / Manuals /

Instructions / Manuals):

1. Most common violations related

to the award and implementation

of contracts:

http://ope.moew.government.bg/fil

es/useruploads/files/documentatio

n/ukazania/narushenia_obshtestve

ni_porachki.pdf

http://ope.moew.government.bg/files/useruploads/files/documentation/ukazania/narushenia_obshtestveni_porachki.pdf





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2. Documents relating to errors

and violations and current issues

of the PPA:

http://ope.moew.government.bg/b

g/pages/dopuskani-greshki-i-

narushenia/67 #1

3. In section manuals, guidelines,

manuals / Implementation of

projects financed by the OPE

- Additional section 1

"Procurement" with additional

supplies, incl. model forms

http://ope.moew.government.bg/b

g/pages/narachnitsi-ukazania-

rakovodstva/66#1

As a new measure to help increase

the capacity of beneficiaries in the

field of public procurement,

quarterly Managing Authority will

prepare a newsletter with practical

examples and descriptions of the

different types of violations found

during verification. The newsletter

will be sent by email and will be

posted on the official website of

the program. The first newsletter

was published in July 2014

(http://ope.moew.government.bg/b


narushenia/67#1). The second one

http://ope.moew.government.bg/bg/pages/dopuskani-greshki-i-narushenia/67#1



http://ope.moew.government.bg/bg/pages/narachnitsi-ukazania-rakovodstva/66#1







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is under preparation.

Various trainings on Public

Procurement Act for the period

from 2007 to present have visited

50 officials from OPT.

In 2012 there were 3 trainings on

procurement, which have trained a

total of 9 employees MA

OPDCBE.

Planned are two trainings which

will train 64 employees of MA

OPDCBE.

Arrangements for training is

regulated by Chapter 18 of the

Manual of Operational Programme

"Competitiveness" and the Internal

Rules on the organization and

conduct of training and

qualification of employees in

MEE.

Earlier this year, the MA approve

annual training plan for employees

which shall be developed based on

their personal learning plans.

Training of the "Public

procurement financed by EU

funds 2013" and in practice of the


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application of the Public.

Pending the training on "Tender

procedures PPA regulations on

public procurement."

period 2008-2012 were conducted

7 trainings on procurement of a

total of 23 employees from OPTA

MA. OPTA MA carried out

preliminary control procedures

under the LPP funded OPTA with

a view to identifying any gaps still

at the stage before the start of the

procedure; 2. OPTA MA

maintains constant communication

with beneficiaries and holds

regular meetings with them

regarding the progress of the

projects / implementation of

activities, which includes a

discussion of current and planned

procedures under the PPA.

10 employees of the MA-OPAC

have undergone four courses

related to public procurement.

Ahead are two trainings on

procurement.

In the period 2011 - October 2013

were held 18 trainings for


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beneficiaries - municipal, regional,

central administration and the

judiciary, through which

information and practical exercises

are carried out on the application

of the rules governing

Procurement under projects

financed by ESF-OPAC. By the

end of 2013 provides for an

additional 2 pieces trainings for

beneficiaries.

Through its website, the MA

provides information on public

procurement, including in the form

of documents elaborated on:

• Examples of indicators for

assessing the bids using the

criterion of "most economically

advantageous tender" when

awarding service training;

• Procedure for ex-ante control of

procurement funded projects

OPAC;

• Common Errors and

irregularities in the drafting of

documentation and tendering;

• Instructions for completing the

schedule of public procurement;

• Examples of violations;


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• Guide for beneficiaries.

Within OPAC taken and

implemented are the following

measures to improve

communications available

between the managing authority

and the beneficiaries in the

implementation of the Public

Procurement Act:

• regular trainings to beneficiaries

after the conclusion of contracts;

• providing advice and

clarification of the beneficiaries;

• maintenance of the special

section "For beneficiaries" on the

website of the program.

Various trainings on Public

Procurement Act for the period

from 2009 have participated 71

employees MA of OPRD. Planned

training on procurement of 28

employees of the MA of OPRD.

Eight experts from the Directorate

General "Programming of

Regional Development" took part

in three training sessions on the

following topics:

• Practice of the Court of Auditors,


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APFI, CPC and PPA on

implementing PPL;

• Practice and changes in public

procurement in 2013;

• ABC of public procurement.

Information for 2014

Two experts from DG

"Programming of Regional

Development" took part in training

on "How to assign a lawful and

effective procurement"

Conducted an internal workshop

of experts from DG "Programming

of Regional Development" on

"New approach of the audit

authority on procurement from

beneficiaries of OP" Regional

Development "2007-2013

Six experts from DG


Development" took part in two

training sessions on the following

topics:

- "Practice of Public Procurement"

- Expected changes in the PPA.

Practical problems of procedures

for the award of the OP. Practice

of Public Procurement Agency. "

- "Act amending the Public


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Procurement Act (promulgated

SG. 40 2014)" - analysis and

interpretation. Preparation and an

open procedure. New practices of

the CPC and SAC in application

of the law. "

Forty-three experts from the

Directorate General


Development" took part in three

training sessions on the following

topics:

- "Up-to-date amendments to the

Law on Public Procurement"

- Eighteenth national seminar

"Practice of public procurement" -

"Recent amendments to the PPA.

Process management in

procurement under the new rules.

Practice of the Public Procurement

Agency";

- Seminar on "Improvement of the

control systems in MA to ex-ante

and ex-post control procedures for

procurement by the Beneficiary

under the Operational Programme

"Regional Development" 2007-

2013

Eight experts from GD ―PRD‖



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sessions on:

- „Act amending the Public

Procurement Act (promulgated

SG. 40 2014)" - analysis and

interpretation. Preparation and an

open procedure. New practices of

the CPC and SAC in application

of the law.";

- „New moments in the

control and appeal of PP‖;

- „Improvement of control

systems in MA in relation to

execute ex-ante and ex-post

control procedures for

procurement by the Beneficiary of

the Operational Programme

"Regional Development" 2007-

2013"

In the period 28-29.07.2014, MA

organized and conducted a

training seminar for MA staff and

practical training of beneficiaries

on lawful public procurement with

participation of representatives of

the audit unit of DG "Regional and

urban policy" and representatives

of DG "Internal Market and

Services" by the EC and of the

Public Procurement Agency.

Seminar participants were


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presented best practices and also

errors in the procurement, taking

preventive actions to prevent

violations.

OPRD MA maintains systems to

exchange information to help

participants in the implementation

and monitoring of the program as

follows:

• Issuing guidance to assist the

beneficiaries, such as general and

in relation to specific cases.;

• Maintain an updated summary of

the practice of admitted violations

in awarding obshtestveniporachki

established by the audit authorities

to audit the MA of OPRD and

related recommendations,

preparing updated information

published on the website of

OPRD, and is provided as

indication to the experts MA

performing pre and post-control.

The information is updated

according to the audits;

• Established practice for

continuous exchange of

experience and good practice

between experts from the RE

department "Zorn" and department

«Monitoring» in connection with


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implementing the preliminary and

follow-up.

Regarding procurement 4 officers

of MA RDP participated in

trainings.

IB MA of OP Fisheries - In 2010 a

study was conducted in

conjunction with PPL for

employees from the "Fisheries and

aquaculture.''

In 2013, training in connection

with the PPA will involve two

experts from the same department.

In 2012, six employees of MA

RDP trained on PPL that are

organized by "European Training

Center" Ltd.; also in 2012, were

trained 29 employees MA RDP on

PPL training being organized by a

contractor on a project funded

under the measure "Technical

assistance" 'RDP (2007-13);

State Fund "Agriculture" - During

2012 and early 2013, seven people

from the "Control of procurement

and implementation of local

development strategies" have been

trained concerning the PPA. At the

end of 2011, all employees of the


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department CPILDS responsible

for processing procedures on

procurement have undergone

training related to the upcoming

changes in the PPA subsequently

entered into force on 26.02.2012.

NAFA

Employees of the Executive

Agency for Fisheries and

Aquaculture have undergone

trainings related to the application

of the procurement rules of the EU

at all relevant levels. In addition,

at the end of November 2013

provided is training on "Public

Procurement Act - a practice of

application".

Measures to improve the

communication channels between

the managing authorities and

beneficiaries in the

implementation of the Public

Procurement Act will be included

in the Programme for Maritime

Affairs and Fisheries from 2014 to

2020.

Public Procurement Agency


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During the period 2007 - 2013 the

Public Procurement Agency has

organized and participated in

conducting 85 training of persons

involved in the process of

procurement.

By Decision № 41 from 27.12.

2012 is approved for funding

under the Operational Programme

"Technical Assistance" a project

entitled "Strengthening the

capacity of the Public Procurement

Agency, improving the system of

ex-ante control procedures

financed by EU funds' with

beneficiary the Public

Procurement Agency. The project

aims to increase the efficiency of

the Agency ex-ante control on

procedures financed by the EU.

The project provides 4 courses in

the field of public procurement of

200 employees of the Managing

Authorities, Intermediate Bodies

and the Public Procurement

Agency.

Information for 2014:

Three of the planned project

trainings are held, having trained

128 employees.

In annex to the OPTA project


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contract is provided an option for

organizing and conducting two

additional training for 80 people.

Agency‘s employees participated

as lecturers in three trainings

organized by the IPA.

In relation of the latest changes in

PPL, in force since 01.07.2014 г.,

PPA experts participated as

lecturers in 14 trainings as 11 of

them are organized by IPa, 2 by

MRD and 1 from National

Association of Labor-Productive

Cooperatives.

Arrangements to ensure

administrative capacity for

implementation and application of

Union public procurement rules.

NO http://rop3-



The Public Procurement Agency is

established with the Public Procurement

Act (promulgated in SG, issue 28 of 2004,

effective from 01.10.2004). It is a legal

entity with the status of an Executive

Agency to the Minister of Economy and

Energy and assist him in the

implementation of the state policy in the

field of public procurement.

The functions of the Agency are described

in Art. 19, para. 2 of PPA.

The most important of them are:

At present, in order to ensure

personnel for preliminary control,

the Agency implements a project

under OP Technical Assistance

that ensures funds for 10

additional staff positions. It is

envisaged in the draft Partnership

Agreement, the Public

Procurement Agency to be

included as a beneficiary under OP

Good Governance to strengthen

the administrative capacity of the

Agency.





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• drafting of legislation in

the field of public procurement for the

implementation of European Directives and

Regulations and national rules;

• methodological support

by giving opinions on inquiries of

contracting authorities;

• issuing common

methodological guidance on the application

of PPA and the rules for implementation of

PPA;

• ex-ante control of

procedures for the award of public contracts

financed entirely or partially under the EU

funds;

• opinions of the ex-ante

control of negotiated procedures without

notice;

• maintaining the Public

Procurement Register (PPR) and the Public

Procurement Portal etc.

Each MA has certain employees who have

in their job descriptions responsibilities on

public procurement issues. Adequate

training on various topics are held.



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Bulgaria for the period 2014 - 2020

provides measures for strengthening and

stability of the administrative capacity of

the Public Procurement Agency,

According to Art. 19, para. 2, items 1 and 2

of the PPA, the Public Procurement Agency

issues general methodological guidelines to

the unification of practices in the

application of PPA and the rules on the

implementation of PPA and provides

methodological support to contracting

authorities by providing opinions on their

queries. Methodological guidelines are

published on the Public Procurement Portal.

According to the changes in PPA, effective

from 10.01.2014, the contracting authorities

are obliged to provide in the preparation of

technical specification and assessment

methodology the participation of at least

one expert who has the professional

competence related to the subject of the

order. When you do not have such a

specialist, they can provide such a person

from the list of external experts, supported

by the PPA. In this list are included

persons, proposed by the professional

associations and organizations in the

respective sector or by the bodies as per

art.19 of Law on Administration or those

who have submitted an application for self-

Information from the CCU on the

administrative capacity of the MA

OP (2013):

The OPT has 8 employees who

have in their job descriptions

responsibilities on public

procurement.

In MA OPDCBE has 119

employees who have responsibility

on public procurement.

In OPTA MA has 2 employees

who have responsibilities related

to public procurement.

The OPAC MA has six employees

who have responsibilities on pa


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registration.

According to information by OPs Managing

Authorities through their websites they

provide to interested parties the necessary

information, incl. under the form of

developed documents, manuals,

instructions, guidance and more in the field

of public procurement.




provides measures to ensure technical

assistance to those who apply the rules on

public procurement.

procurement.

MA RDP - In job descriptions of

employees in "Legal and

information services" has included

responsibilities in relation to

public procurement. Ministry of

MA of OP Fisheries (Directorate

"Fisheries and Aquaculture" State

Fund "Agriculture") - no

employees whose job descriptions

to include responsibilities relating

to public procurement.

In the OP MA - the "Rural

Development" Directorate - has no

employees with responsibilities

concerning the issues of public

procurement;

State Fund "Agriculture" - Paying

Agency: In the job descriptions of

the 49 employees of the SFA-PA,

the "Implement measures to Rural

Development''," Control over the

procurement and implementation

of local development strategies "is

written handling public

procurement procedures.

In MA of OPRD has 89

employees who have responsibility


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on public procurement.

In Manual for the management and

implementation of the Operational

Programme "Regional

Development" 2007-2013 Chapter

20 Technical Assistance are

written procedures for the award

of public procurement orders for

the provision of grants for projects

with specific beneficiary

departments DG "RDP" under the

PPA. There are teams for the

development of the documentation

for the award of the OP. Schedules

is how to control the procurement

process conducted by the

departments of DG "RDP" which

takes place on various stages of

conducting the procedure.

As of 04/28/2014, the adopted

amendments to the checklist for

performing the preliminary and

follow-up of open procedures and

negotiated procedures without

notice; checklist to follow when

contracting under Chapter "Eight"

and the PPA / most used / -

Version 9.1. Changes are made to

strengthen control mainly

concerning the legality of the

removal of participants/candidates

in the procedures and the legality


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of the assessment methodology

and their application to the work

of Combs for review, evaluation

and ranking of bids. The control of

Expert 2 is strengthened - in terms

of conformity with technical

specifications from the

documentation and requirements

in public procurement to those in

grant contracts and the subsequent

need for compliance of offers with

these requirements.

In connection with the violations

found during routine audit mission

from 04.07.2014 -11.04.2014, in a

letter from DG "Regional and

urban policy", European

Commission, received on

06/03/2014, in OPRD Managing

Authority, having regard to

identified violations committed by

OPRD beneficiaries in

procurement that provides the

basis for determining financial

corrections and in view of the need

to improve the control systems, the

MA of OPRD has taken the

following actions:

- on 20.06.2014 were adopted

amendments to Chapter 13

Monitoring of Handbook on

MIOPRD (effective from


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01.07.2014 years), including with

respect to: checklists for

implementing ex-ante and ex-post

control of procedures for the

award of public procurement;

checklist for ex post control in

procurement by public invitation

under Chapter Eight "a" of PPA –

Version.

- conducting internal training of

MA experts responsible for

conducting ex-ante and ex-post

control, work with advanced

checklists of Handbook on

MIOPRD-26-27.06.2014 on;

- Supplement the directives issued

to beneficiaries published on

25.06.2014 on the website of MA

of OPRD, in order to prevent

irregularities in procurement;

- Practical training of beneficiaries

in relation to the new control

mechanisms implemented by the

MA of OPRD.

- In the period 28-29.07.2014, MA

organized and conducted a training

seminar for MA staff and practical

training of beneficiaries on lawful

public procurement with

participation of representatives of

the audit unit of DG "Regional and


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urban policy" and representatives

of DG "Internal Market and

Services" by the EC and of the

Public Procurement Agency.

Seminar participants were

presented best practices and also

errors in the procurement, taking

preventive actions to prevent

violations.

- on 28.07.2014 was held technical

meeting at expert level with

participation of Head of MA of

OPRD, EC representatives, the

national audit body and the

certifying authority on which were

discussed the concrete steps that

need to be undertaken for

restarting of payments on the two

axis of the programme,

recommendations were made for

supplementing control sheets for

ex-post control with control

questions regarding risk spheres in

awarding;

- MA of OPRD elaborated an

analysis of statements on

violations in awarding of PP by

beneficiaries with view and

readiness for constant improving

of the management and control

system.


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- execution of contracts for the

provision of specialized legal

services for MA of OPRD in order

to support the process of ex-ante

and ex-post-control, the

administering of denunciations and

support of the MA in the case of

proceedings under Art. 100 of

Regulation № 1083/2006 by the

Council.

MA OPHRD - 6 employees with

responsibilities relating to issues

of procurement and 32 employees

with responsibilities related to

inspection activities, some of

which are public procurement

procedures;

IB - EA - 15 employees with

responsibilities in matters of

public procurement;

IB - SAA - 34 employees with

responsibilities in matters of

public procurement;

IB - Ministry of Education and

Science- 25 employees with

responsibilities related to public

procurement issues.

In addition to the above control

mechanisms, information entities


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as part of the control and the

involvement of external expertise

where such missing in the OP.

In 2012 16 employees of the OPE

MA participated in 45 training

courses on to procurement issues

and from the IB 30 employees


sessions.

Since the beginning of 2013 was

conducted on public procurement

were trained 16 experts from the

MA in 4 courses and 4 experts

from IB in 1 course.

In 2014 5 experts from GD ―OPE‖

at MOEW have participated in 3

trainings on public procurement.

In the matters of PP is engaged

department ―Ex-post control and

procedural representation‖ after

the restructuiring of IB and MA of

OPE into GD ―OPE‖ in the end of

March 2914.

MA OPE has posted on its web

site a number of guidelines and

supporting documents to

beneficiaries related to public

procurement (mainly published in

"Documents / Manuals /


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Instructions / Manuals):

1. Most common violations related

to the award and implementation

of contracts:

http://ope.moew.government.bg/fil

es/useruploads/files/documentatio

n/ukazania/narushenia_obshtestve

ni_porachki.pdf

2. Documents relating to errors

and violations and current issues

of the PPA:

http://ope.moew.government.bg/bg

/pages/dopuskani-greshki-i-

narushenia/67 #1

3. In section manuals, guidelines,

manuals / Implementation of

projects financed by the OPE

- Additional section 1

"Procurement" with additional

supplies, incl. model forms

http://ope.moew.government.bg/bg

/pages/narachnitsi-ukazania-

rakovodstva/66#1

As a new measure to help increase

the capacity of beneficiaries in the

field of public procurement,

quarterly Managing Authority will

prepare a newsletter with practical

examples and descriptions of the












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different types of violations found

during verification. The newsletter

will be sent by email and will be

posted on the official website of

the program. The first newsletter

was published in July 2014

(http://ope.moew.government.bg/b


narushenia/67#1). The second one

is under preparation.

5. The existence of



Union State aid rules in

the field of the ESI

Funds..

YES Arrangements for the effective

application of Union State aid rules; YES The national legislation on state aid is

available at:

http://stateaid.minfin.bg/

1. State Aid Act (SAA) - Art. 5, 7,

9, 11, 12, 13; (CoM Decree 86/2006 in

effect since 1.1.2007, amended CoM

Decree 16/2008)

2. Rules for the Implementation of

SAA - notification procedures;

(CoM Decree 26/2007, amended CoM

Decree 97/2007, CoM Decree 10/2009,

CoM Decree 3/2010)

3. Procedure to ensure the

• All aid measures -

notifiable or exempt from

notification, except for de

minimis, are subject to mandatory

coordination.

• Cumulation rules are

directly applicable to the

requirements of the aid measures.

National legislation does not

contain specific regulations,

because accumulation is an

element of specific aid measures

and is obligatory checked when

coordinating the measure.

Compliance with the rules for

accumulation are monitored by the

administrator through: -

determining at the programming

phase whether the measures are /

are not eligible for accumulation -






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transparency of financial relations

between public authorities and local

governments and state and municipal

enterprises and transparency within

certain undertakings - the transposition of

Directive 2006/111 (EC) (CoM Decree

99/2006, effective from 1.1.2007 )

The current SAA regulates national

procedures for the implementation of Art.

107 and Art. 108 TFEU, as well as the

powers of the Ministry of Finance and the

Minister of Agriculture and Food, the

nature of the procedures, information

exchange and coordination. It establishes

a framework for compliance with the

regime at national level, incl. with respect

to the notifiable aid, aid exempted from

notification and aid de minimis.

check of the maximum amount of

the aid on a specific project - in

ex-ante and ex-post control of the

project.

• Clause "Deggendorf" is

legally regulated in Article 9, para.

3 of the Rules for Implementation

of SAA. It is applicable to all aid

administrators.

• According to § 1, point 5

of the SP of SAA, any amendment

of an aid shall be treated as new

aid and it is subject to the same

rules of coordination and approval.

• Regardless of the way of

management of the financial

instrument, the State aid rules are

applicable to the aid administrator.

Objectives, content and specific

parameters of any new state aid are

developed by the administrator

and submitted to the Ministry of

Finance. In case of doubt or

ambiguity the Ministry of Finance

provides recommendations.

Regardless of the form and the

instrument for support, grant /

financial instruments, state aid

legislation is applicable to each

administrator (MA). In case of

multi-phase schemes, the latter is

applicable to each of the


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participants. The aid element may

be missing at a particular level of

the measure but it may appear on

another level. Exceptions and / or

special derogations from the

procedure for notification and

assessment in case of repayable

assistance are not provided for.

• National law governs the

procedure for recovery of illegal

and incompatible aid under the

Tax Insurance Procedure Code

(TIPC) by NRA. NRA acts are

subject to appeal before the

competent national courts.

Effective and timely recovery is

governed by the procedures for the

collection and provision of public

debts. Decisions of the

Commission for recovery of

unlawful State aid shall be

enforceable under the TIPC.

Additional measures are taken to

improve the legal framework to

allow immediate and full

implementation of the decisions of

the Commission for recovery.

• The compliance with

General Block Exemption

Regulation (GBER) is regulated in

SAA. The Minister of Finance

shall consider the information


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received and shall issue an

opinion. In the event that there is

uncertainty about the application

of the measure or discrepancy, the

administrator has 14 days to

correct the project. In case where

the administrator does not bring

state aid in alignment within the

prescribed period, the MoF shall

inform the administrator that the

aid does not meet the criteria for

block exemption. A state aid

administrator not accepting the

opinion of MoF and grants the

state aid is responsible for its

legality. The state aid

administrator shall inform the

Ministry within three days of the

delivery of any state aid covered

by GBER and will publish

information on the Internet.

• The exchange of

information on state aid and de

minimis aid at national level are

governed on two levels that are

sufficiently accurate and timely.

Data to the Commission are

provided as follows:

- based on specific

requests from the European

Commission;

- regular data exchange -


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annual report, thematic reports etc.

At present, the EU legislation does

not have a requirement for a

central de minimis aid registry,

this is an option only for the aid

under Regulation 1998/2006.

Special separate statement is

included in the new GBER

(Regulation No 651/2014,

17.06.2014). The Bulgarian state

aid legislation empowers MoF to

request information related to the

state aid and provides for sanctions

in case of non-delivery by the

administrator.

The SAA obliges the state aid

administrators to maintain their

own registers of state/de minimis

aid and they bear the

responsibility for the reliability of

the data and upon request allow

access to the registers. To ensure

transparency and reporting, MoF

supports an Internet based

Information system "State Aid

and De Minimis Register"

available at:

http://minimis.minfin.bg. The

Register is completed directly by

the state aid and de minimis

administrators that submit the

same information on hard copy to

http://minimis.minfin.bg./


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the MoF. The register allows for

drawing various types of public

reports. The information for state

aid is only on the basis of the new

GBER requirements. In a

subsequent revision of the

European legislation in the field

of state aid, requiring additional

registers for information, such

will be created.

According to the document

"Procedure for managing user

access to Information system

―Register of state aid", approved

by Order of the Ministry of

Finance ZMF-925 of 15.08.2014,

the system provides access at two

levels - user part (for aid

administrators) and

administrative part (for

employees of the Ministry of

Finance).

User part serves to the

administrators for input and

processing the necessary

information about the types of aid

measures and beneficiaries, and

the administrative one - to

provide access to administrators.

The system has a public module

for (accessible to all), which at

the moment is extended in order


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to retrieve data under different

criteria, according to the new

GBER requirements.

A draft for the

amendment of SAA is prepared.

It was preliminaly coordinated

with the relevant administrative

bodies but it will be sent to the

Council of Ministers after the

new cabinet has took place after

the elections on as per the

5.10.2014 In view of the limited

rights of the caretaker

government, before CoM the

draft will again be sent for

consultations. The amendments

seek technical refinement and

updating of the rules so as to

improve the procedures and

interaction between the parties in

the process of state aid since its

planning until the time of its

actual use. The main version of

the State Aid Act is of 2006,

respectively comes into effect on

01.01.2007 and currently does not

reflect the development of the

system at European level.

Substantial changes in the bill

over the status quo are:

The new SAA draft does not

amend conceptually the order and


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regime at a national level, but

rather refines texts and procedures.

The novelties are:

1. Introducing a special procedure

for recovery of illegal and

incompatible aid when recipients

and amounts of aid are not

predefined in the EC decision for

recovery. SAA currently does not

regulate this specific case, the

provision defines only that the aid

be recovered pursuant to the

decision of the European

Commission.

2. Provisions are made to ensure

sufficient capacity for planning,

development, notification,

management, reporting and control

of the granting of state and

minimum aid by aid

administrators. The proposal

creates a connection between

previously existing legal

obligation for administrators and

its practical implementation,

ensuring maintenance of

administrative capacity at all

levels, providing state aid.

Currently there are no provisions

for capacity in the SAA.

3. The functions of the MF to


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provide methodological guidance

to administrators and to take

measures to improve the regime

are expanded. In the current SAA

functions of MF do not allow

issuing of guidelines, only

opinions to help administrators.

4. Improved is the coordination

and monitoring of state aid by

suggesting compilation of acts for

establishing violations be carried

out by officials of the Agency for

State Financial Inspection. Under

the current SAA policy violations

are established by acts issued by

officials authorized by the MF.

With the proposed change the

existing control mechanism is

improved which ensures the

applicable enforcement of the

regime and clearly separates

control from the methodological

functions. Control is delegated to a

subject with control functions.

To improve control, a change is

suggested in the Public Financial

Inspection Act in terms of

functions. Until now Art. 5 of

PFIA regulates control over the

utilization of state aid and

spending of expedient subsidies,

after the change control should


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cover the provision, utilization and

spending.

5. Terminological and practical

refinement of the law:

- introduction of basic

principles that must comply when

providing aid. This is in the

context of European legislation on

state aid, as it requires provision of

aid to be necessary, appropriate,

efficient and transparent, also to

have an incentive effect in certain

cases. These are defined according

to the criteria laid down in the

relevant act by the law of the

European Union, on which aid is

granted.

- moving the requirement to

comply with the Degdendorf

criteria from the regulation to the

Act;

- creating a framework regulating

the establishment and maintenance

of an IT system for monitoring and

coordination of state aid held at

central, regional and municipal

level. The current SAA does not

have such provisions. Currently,

the system of coordination takes

place in Working Group 6 to

Decree 85/2007 or through


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targeted initiatives on specific

problem. The purpose of this

change is not to significantly

change the existing system but to

improve its performance by

regularity and raising awareness.

- refined are aid exempt from

notification on grounds other than

the block exemption by Regulation

1370/2007 and EC decision SGEI

2012.

- introducing the obligation for

aid administrators to inform

recipients about the type, size and

compatibility of the aid, as well

as obligations arising from the

arrangement. Until now, the

current SAA does not regulate

particular order.




ESI funds;

YES Sources of specialized information

1. http://stateaid.minfin.bg/

2. http://minimis.minfin.bg/

3. http://www.minfin.bg/en/page/12

• All MA have undergone trainings on

state aid in the School of Public Finance at

the Ministry of Finance, and some of them

within the framework of OPs technical

assistance.

MoF supports specialized web

page for information related to

State aid, where the Bulgarian

and the legislation of EU, the

procedures and initiatives of EC

are available.

Information system "State aid and

de minimis register― is

maintained by MoF. It is

completed by the administrators

of state aid.


http://minimis.minfin.bg/

http://www.minfin.bg/en/page/12


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School of Public Finance at the Ministry of

Finance

(http://www.minfin.bg/bg/page/12)

organizes trainings in state aid on requests

several times a year. Any training program

is formed according to the objectives and

needs of the trainees. The trainings are

free-of-charge.

• Maintenance of information and

publicity of state aid is implemented

through two information channels:

o general - specialized Internet

page on State Aid legislation

http://stateaid.minfin.bg/ and within

WG 6 to the Council of European

Affairs (CEA).

o thematically by the MoF, as

appropriate and in accordance with

different cases, such notification shall

be made by official correspondence

or e-mail and via the FAQ page of the

State Aid;

• The system of exchange of

information on state aid at the level of each

administrator (MA) is carried out

according to the specifics of its activities -

for example by internal rules.

• MoF may issue thematic

guidance on various topics aimed to clarify

specific issues.

The Institute of Public

Administration/School on Public

Finance provide training for each

administrator and/or public

authority under issues related to

state aid.

In order to strengthen the regime

the proposal for amending SAA

provides for additional

obligations for state aid

administrator, which are

developed, in order to build and

maintain sufficient administrative

capacity to plan, develop, inform,

manage, report and control state

aid and grant de minimis aid.

http://www.minfin.bg/bg/page/12



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Each relevant MA (OPHRD, OPE,

OPRD, OPCBE) has certain employees

who are responsible for public

procurement issues which responsibilities

are included in their job descriptions.

Arrangements to ensure

administrative capacity for

implementation and application of

Union State aid rules.

YES The national and European legislation on

state aid is available at:


• According to the national legal

framework, MoF is the national body

responsible for the monitoring,

transparency and coordination of state aid at

national, regional and local level, with the

exception of aid schemes or individual aid

in the agriculture and fisheries, where the

competent body is MAF.

• The competences of the Ministry

of Finance regulate the issuance of specific

opinions and prior coordination of aid

measures.

• In the draft new SAA refining of

the functions of the coordination unit are

planned by preparing methodological

guidelines and taking measures for the

development of the regime in the field of

state aid.

• MoF has experience in issuing

publications, manuals and instructions for

Since 01.09.2014 is in force new

functional characteristics of Real

Sector Finance Directorate at

MoF, as part of the State Aid

Department functions are

transferred to the other

departments of RSFD with which

they are entitled competences and

specific functions from the state

aid field. This is aimed at creating

additional capacity. State Aid

Department is renamed to

―Methodology, monitoring and

coordination of state aid‖.

Prepared changes in SAA

explicitly require any aid

administrator, as OPMA, to build

and maintain sufficient capacity

for planning, development,

notification, management,

reporting and control of the

granting of state and de minimis

aid.

Provisions are envisaged for each

aid administrator to individually

determine the measures for the



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the benefit of aid administrators, including

MA. Beyond regular opinions of the State

Aid Department in the MoF, since 2007

thematic guidelines in favor of MA are

issued / updated as well. All current

national guidelines and EU publications

that would be useful for administrators are

publish on a specialized website.

• In the draft amendment to the

SAA an introduction of a specific

obligation for aid administrators is

envisaged (including OPMA) to build,

maintain, and provide sufficient capacity

for the planning, development, notification,

management, reporting and control of

granted state and de minimis aid. Measures

for the implementation of the latter are

determined individually by each aid

administrator.

Each relevant MA (OPHRD, OPE,

OPRD, OPCBE) has certain employees

who are responsible for public procurement

issues which responsibilities are included in

their job descriptions.

implementation of these activities,

according to the volume and

specifics of the administered aid,

including at least technical

security and staffing and measures

for data protection.

The draft provides for each state

aid and de minimis aid, the

administrator to determine the

persons responsible for carrying

out the planning, development,

notification, management,

reporting and control of the

granting of state aid and de

minimis aid.

The bill contains a change in the

functions of MoF. New functions

are envisaged:

- on the preparation of

methodological guidelines for the

implementation of this Act and the

legislation on state aid;

- on the measures for the

development and improvement of

the system in the field of state aid

and to ensure transparency.

- on building and maintaining of

information system for monitoring

and coordination of state aid at

central, regional and municipal


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level; the system will represent a

set of measures for exchange of

information, building and

maintaining administrative

capacity in order to improve the

transparency of state aid at all

levels.

These functions are intended to

clarify the legal framework in

which MoF shall provide specific

recommendations and guidance to

help administrators.

Until now, such recommendations

are provided on the basis of the

general powers of the Minister of

Finance as a national coordinating

body for monitoring and ensuring

transparency and does not have a

unified and binding nature for the

administrators.

With the adoption of the proposed

regulatory changes MoF will be

able to issue thematic instructions

to the administrators. The

amendments in the SAA will not

change the obligatory character of

the issued instructions. The current

model is being kept – the

administrator of aid to carry

responsibility of the legal

conformity of the aid given. The

instructions of the MoF regarding


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the aid, subject to notification as

per art.108/3/TFEU and regarding

de minimis aid are

methodological, not obligatory.

Obligatory are the standpoints

regarding the aid exempted from

notification.

• The change in the legal

framework will allow the MoF to

provide thematic and practical

instructions, for example:

- preparation of Internal Rules for

the preliminary assessment of the

aid and the phases in which the

support measures are coordinated;

- development of internal rules for

assessing the eligibility of

cumulation of aid and for effective

control of the same.

- development of individual

mechanism by which to check the

compliance of the provision of

Art. 9, para. 3 of the Implementing

Rules ("Deggendorf");

- Description of a specific

procedure by steps of the

modification of already published /

approved aid measure and

arrangements for coordination

with the Ministry of Finance, and


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if necessary - to notify the

European Commission (eg

pursuant to Art. 4 of Regulation

794/2004 and Regulation

800/2008).

- for inclusion in MA procedural

manuals of specific provisions

(steps) to ensure awareness and

dissemination of information on

the rules on state aid at all levels.

In the context of the new

operational programmes, the need

for specific actions related to the

capacity of the MA is evaluated

after the Ministry of Finance starts

the coordination of specific

procedures, the measures for

assistance and/or other relevant

information, and where PFIA

provide information about the

inspections / checks, in which

there are findings and

recommendations in the field of

state aid.

6. The existence of



Union environmental

legislation related to EIA

and SEA.6.

YES

Arrangements for the effective

application of Directive 2011/92/EU

of the European Parliament and of the

Council ( 2 ) (EIA) and of Directive

2001/42/EC of the European

Parliament and of the Council ( 3 )

(SEA);

YES Environmental Protection Act

(promulgated, SG, issue 91 of 25.09.2002,

amended and supplemented)

http://www3.moew.government.bg/files/file

/Industry/Legislation/Zakoni/ZOOS.pdf

A legislation is in place to

implement the Directives on EIA

and SEA, including in terms of

clear regulations the method of

assessing the quality of EIA

reports and reports on the EA and

the opportunities for access to

http://www3.moew.government.bg/files/file/Industry/Legislation/Zakoni/ZOOS.pdf

http://www3.moew.government.bg/files/file/Industry/Legislation/Zakoni/ZOOS.pdf


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Ordinance on the conditions and procedures

for environmental impact assessment

(subsequent amendment SG, issue 94 of

30.11.2012)


/Legislation/Naredbi/NAREDBA_za_uslovi

qta_i_reda_za_izvyrsvane_na_ocenka_na_v

yzdejstvieto_vyrhu_okolnata_sreda_Zagl_i

zm_D.pdf

Ordinance on the conditions and procedures

for environmental impact assessment

(subsequent amendment (SG, issue 94 of

30.11.2012)


/Industry/Legislation/Naredbi/NAREDBA_

za_usloviqta_i_reda_za_izvyrsvane_na_eko

logicna_ocenka_na_planove_i_programi_Z

agl_izm_DV_br_.pdf

documents and public participation

at various stages of the EIA and

EA procedures and clear

regulation of the right of interested

parties for access to justice.




EIA and SEA Directives;

YES http://www.moew.government.bg/?show=to

p&cid=233

Letter № 05-08-7258/13.11.2013 of MEW,

containing information about the experts

Implemented JASPERS project No

2012 155 BG MSE MSU,

‖Support for Preventive Activities

Directorate and Natura 2000‖

Department within the Ministry of

Environment and Waters (MEW),

http://www3.moew.government.bg/files/file/Legislation/Naredbi/NAREDBA_za_usloviqta_i_reda_za_izvyrsvane_na_ocenka_na_vyzdejstvieto_vyrhu_okolnata_sreda_Zagl_izm_D.pdf





http://www3.moew.government.bg/files/file/Industry/Legislation/Naredbi/NAREDBA_za_usloviqta_i_reda_za_izvyrsvane_na_ekologicna_ocenka_na_planove_i_programi_Zagl_izm_DV_br_.pdf








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responsible for EIA and SEA for

development of electronic network.

Guidelines elaborated under the JASPERS

project are published at the internet page of

the Ministry of Environment and Water:

http://www.moew.government.bg/?show=to

p&cid=233


p&cid=233&lang=en

Trainings, workshops and seminars are

held. Guidelines are developed. Access is

ensured to the guidelines and the issued

manuals electronically and by regular mail.

An electronic network of the EIA and EA

experts is created, including at regional

level, for exchange of information,

experience and for the electronic

dissemination of information and

documents.

E-mail address of all EIA and SEA experts

at MOEW for exchange of information,

experience and dissemination of

information and documentation by e-mail.

given the implementation of the

common ex-ante conditionalities.

A seminar was held in March 2013

with the participation of EIA and

EA experts from the 16 RIEWs,

representatives of JASPERS and

the EC. Six manuals are issued

under the project: for roads,

railway projects, waste, waste

waters, application of Art. 7 of the

EIA Directive and practical

handbook for EIA and EA training

- key elements, including a list of

rulings of the EU Court of Justice

on EIA.

Letter № 26-00-3425/13.01.2014

of the MEW with guidance for the

implementation of the Regulation

on conditions and procedures for

assessing the environmental

impact and Chapter VI of the Law

on Environmental Protection.

Guidelines have been prepared

under ref. No. No. 05-08-

857/20.02.2014, 05-08-

858/20.02.2014 and 02-00-

11/24.02.2014 on the legal effect

of the EIA decision and

application of the provisions of



http://www.moew.government.bg/?show=top&cid=233&lang=en

http://www.moew.government.bg/?show=top&cid=233&lang=en


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At the page of the MEW is published

guidance on the application of the

provisions of Art. 2a of the Ordinance on

the arrangements and procedures for EIA,

art. 7 of the Ordinance on the arrangements

and procedures for conducting SEA on

plans and programs, and art. 13 , para . 3 of

the Ordinance on the arrangements and

procedures for assessing the compatibility

of plans, programs, projects and investment

proposals with the subject and the

objectives of the conservation of protected

areas to determine the eligibility of

investment proposals, plans , programs and

projects according to the restrictions in the

National Action Plan for renewable energy

by 2020, arising from the environmental

assessment Opinion № 1-2/2012 of the

Minister of Environment and Water .


p&cid=233

article 93, para 7 and article 99,

para. 8 of the EPA.

Instruction sent to the RIEWs

through the electronic network of

experts on EIA and SEA to fill the

information in the records in EIA

and SEA registers. Instruction sent

on defining the scope and content

of the reports of assessing the

environmental impact assessment

(EIA) and Environmental

Assessment (EA), sent through

formal mail to the directors of

RIEWs by letter ref. № 05-08-

2757/28.04.2014, as well as

through the electronic network of

experts in EIA and SEA. The same

is also published on the website of

Ministry:

http://www.moew.government.bg/

?show=top&cid=233

Instruction prepared № 05-08-

3097/30.05.2014 of MOEW

regarding the scope of p. 2, ―g― of

Annex № 2 of the Law on

Environmental Protection, which

is distributed by e-network experts

in EIA and SEA and published at


files/file/Industry/EIA/2014/Ukaza

nia_pravno_deistvie_reshenia_OV





http://www.moew.government.bg/files/file/Industry/EIA/2014/Ukazania_pravno_deistvie_reshenia_OVOS.pdf




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OS.pdf.

Instruction prepared № 91-00-

78/15.07.2014 of MOEW rearding

legal application of decision under

FIA and decisions for judgement

of the necessity of having FIA,

which is sent through the e-

network experts on FA and SEA

as well as by official mail to the 16

RIEWs, 4 basins directorated,

MEE, MRD and MAF.

Instruction letter prepared 04-00-

1379/22.07.2014 г. regarding

application of the environmental

legislation in deciding on

contruction under LSP, which is

sent through the e-network experts

on FA and SEA.

Update of information at MOEW

page with instructions on

application of EIA and SEA

procedures:


?show=top&cid=233

Guidance letter ref. № 15-00-71 /

03.10.2014 from MoEW on the

application of Art. 93, para. 6 of

the EPA was issued. The letter was

sent by mail to the official

"Bulgarian Association of





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Recycling" as an interested party

and to the Directors of Regional

Inspectorates, as well as the

electronic network of experts in

EIA and SEA.

Arrangements to ensure sufficient

administrative capacity. YES In the 16 RIEWs, as competent

environmental authorities in the EIA and

EA procedure, structural EIA and EA units

exist with appointed experts whose job

descriptions include the coordination of the

procedures under EIA and EA.

http://www.moew.government.bg/?show=1

64

Trainings, workshops and

seminars are held. Guidelines are

developed. Access is ensured to

the guidelines and the issued

manuals electronically and by

regular mail. Methodological

guidelines and manuals are

promptly disclosed on the websites

of MEW and RIEW. Guidelines

and manuals are distributed both in

paper and electronically via the

created network of the experts on

EIA and SEA at national and

regional level.

Prepared under project of

JASPERS guidelines are

distributed to all experts in EIA

and SEA in the system of the

Ministry and 16 RIEWs in the

created electronic network.

Guideline on determining the

eligibility of investment proposals,

plans, programs and projects

according to the restrictions in the




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National Action Plan for

Renewable Energy by 2020,

arising from the environmental

assessment Opinion № 1-2/2012

of the Minister of Environment

and water is circulated to all

experts on EIA and SEA in the

system of the Ministry and 16

RIEWs via the created electronic

network.

Letter № 26-00-3425/13.01.2014

of the MEW with guidance for the

implementation of the Regulation

on conditions and procedures for

assessing the environmental

impact and Chapter VI of the Law

on Environmental Protection was

distributed among all experts in

AEI and SEA in the system of the

Ministry and the 16 RIEWs

through the established electronic

network.

On 02.07.2014 г. At MOEW is hel

a working meeting with AEI and

SEA at MOEW system incl the 11

RIEWs.

7. The existence of a

statistical basis necessary

to undertake evaluations

Partially Arrangements for timely collection

and aggregation of statistical data

with the following elements are in

YES European statistics Code of Practice

http://www.nsi.bg/files/Quality/1.1.%20Co

To ensure the quality of results,

harmonized national statistics are

developed, produced and

http://www.nsi.bg/files/Quality/1.1.%20CoP_ALL_BG.pdf


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to assess the effectiveness

and impact of the

programmes. The

existence of a system of

result indicators necessary

to select actions, which

most effectively

contribute to desired

results, to monitor

progress towards results

and to undertake impact

evaluation.

place:

— the identification of sources and

mechanisms to ensure statistical

validation;

— arrangements for publication and

public availability of aggregated data;

P_ALL_BG.pdf

Declaration on the quality of the national

statistical system of the Republic of

Bulgaria:

http://www.nsi.bg/files/Quality/QUALITY_

NSI_Declaration.pdf

Statistics Act:

http://www.nsi.bg/dokument.php?P=64&SP

=102&NSP=1#cont

National Statistical Program for 2013:


=102&NSP=36#cont

Rules for the dissemination of statistical

products and services:


=102&NSP=20#cont

disseminated on the basis of

harmonized standards and

methods. The following quality

criteria are applied:

a) "relevance", which refers to the

degree to which statistics meet

current and potential needs of the

users;

b) "Accuracy", which refers to the

closeness of estimates to the

unknown true values;

c) "Timeliness": refers to the

period between the availability of

the information and the event or

phenomenon it describes;

d) "Punctuality", which refers to

the period of time between the date

of the release of the data and the

target date (the date by which the

data should have been delivered);

e) "Accessibility" and "clarity":

refer to the conditions and

modalities by which users can

obtain, use and interpret data;

f) "comparability", which refers to

the measurement of the impact of

differences in applied statistical

concepts, measurement tools and

procedures where statistics are

compared between geographical

areas, sectoral domains or over

time;

j) "coherence", which refers to the

http://www.nsi.bg/files/Quality/1.1.%20CoP_ALL_BG.pdf

http://www.nsi.bg/files/Quality/QUALITY_NSI_Declaration.pdf

http://www.nsi.bg/files/Quality/QUALITY_NSI_Declaration.pdf

http://www.nsi.bg/dokument.php?P=64&SP=102&NSP=1#cont







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adequacy of the data to be reliably

combined in different ways and for

various uses.

NSI - leading to the provision of

general for the programs

performance indicators and

mechanisms to ensure statistical

validation.

OPs Managing Authorities -

leading to the development and

maintenance of an effective system

of indicators.

For the systems developed to date,

the information concerning

indicators of individual programs

will be available in the public

UMIS, on the websites of the

Managing Authorities of the

respective programs.

An effective system of result

indicators including:

— the selection of result indicators

for each programme providing

information on what motivates the

selection of policy actions financed

by the programme;

— the establishment of targets for

these indicators;

— the consistency of each indicator

NO List of standard statistical indicators:

http://www.nsi.bg/img/uplf/StdInd2013.pdf

http://www.nsi.bg/img/uplf_e/StdInd2013_

en.pdf

Performance of the criterion is

linked to the complete

development of the OPs.

Indicators that will be developed

during the implementation of OPs

by MA or the beneficiaries will

have to undergo statistical

validation in accordance with the

following procedures:

1. When the indicators are based

on administrative data, the

http://www.nsi.bg/img/uplf/StdInd2013.pdf

http://www.nsi.bg/img/uplf_e/StdInd2013_en.pdf

http://www.nsi.bg/img/uplf_e/StdInd2013_en.pdf


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with the following requisites:

robustness and statistical validation,

clarity of normative interpretation,

responsiveness to policy, timely

collection of data;

definitions and concepts used for

administrative purposes should be

close enough to those required for

statistical purposes.

2. Sampling and assessment

methods should be well justified.

3. Methods of data collection

should be coordinated with NSI,

and their application is observed in

terms of compliance with the

methodology.

4. Beneficiaries and MA cooperate

with NSI to ensure data quality.

Defined are quantity and quality

goals for result indicators, which

content is coordinated between the

EU programmes and other donors.

For the indicators are are defined

quantity and quality goals that are

in conformity with Europe 2020.

–

- Procedures to ensure that all

operations financed by the program

adopt an effective system of

indicators.

NO For the ESF is provided collecting

information on an individual level

for each participant in accordance

with the provisions of Regulation

1304/2013 as well as at project

level and priority level. Reporting

will be accomplished through

performance and result indicators

set at the appropriate level of the

operational programme for which

the reporting and impact


of 274

Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







assessment are held.

Monitoring data will be presented

at each meeting of the Monitoring

Committee (MC) so that MC

members can discuss issues that

could hinder the proper

implementation of the programme.

Activities carried out in relation to

the timely collection of microdata

for participants will be reported in

the annual implementation reports,

as well as in the progress reports

submitted to the MC.

The data itself reflects all

participants that directly used or

benefit of ESF support, as in case

of doubled participation in the

same operation, the individual

participant is counted only once.

For reporting purposes (despite the

fact that to the EC will be provided

only aggregated data) personal

data will be used for each

participant (eg, gender, status on

the labor market, education level,

etc) including "sensitive" one (eg,

disability, minority status,

disability, etc.). Under the

provisions of the Directive on the

protection of personal data, each

participant may refuse to give

"sensitive" information, in which


of 274

Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







case the relevant management

bodies of documentary

programmes must establish that

they have attempted to collect such

data, and that was refused.

Much like the common indicators

in Regulation 1304/2013, the

Managing Authorities will provide

clear and understandable

definitions of specific indicators of

individual programs with which to

achieve a common understanding

of them and to facilitate their

subsequent reporting.

Managing authorities build their

systems for storage and reporting

data on individual participants in

electronic form, with regard not

only to the formal implementation

of the provisions of Article 56 of

Regulation 1303/2013 and Article

5 and Article 19 of Regulation

1304/2013, but in order to

effectively fulfill the obligations of

the monitored and evaluation. For

this purpose, they were built on the

systems and procedures for

monitoring the ESF in the 2007-

2013 programming period, which,

however, need additional settings

and clarification as to comply with

the requirements applicable to the


of 274

Applicable ex-ante



responsible

Applicable

ex-ante

conditionality

fulfilled:

Yes/No/Parti

ally

Criteria: Criterion

fulfilled:

Yes/No







programming period 2014-2020

and also to reporting indicators for

immediate and long-term result,

incl. on a sample basis.


of 274

Table 9-2 Actions to fulfil applicable general ex-ante conditionalities

Applicable general ex-ante

conditionalities for which


responsible and which are

unfulfilled or partially

fulfilled

Criteria not fulfilled Actions to be taken Deadline (date)

Responsible

authorities for

fulfillment

4. The existence of arrangements

for the effective application of

Union public procurement law in

the field of the ESI Funds.

Arrangements for the effective


procurement rules through appropriate

mechanisms;

Action 1.

Adoption of National Strategy for the Development of the Public

Procurement Sector in Bulgaria for the period 2014 – 2020

The draft Strategy envisages measures to raise effectiveness in public

procurement and creation of guarantees for conformity with EU law

in the field.

Deadline for Action 1:

July 2014

MEE

PPA

Action 2.

Adoption of a codified, sustainable and simplified legislation on

public procurement through adoption of new PPA and secondary

legislation acts on its application.


January 2016

MEE

PPA

Action 3.

Design of reinforced management and control systems for ESIF, incl.

effective cooperation in order to ensure consistency between the

actions in the ex-ante and ex-post control


January 2016

MA

CCU

EA AEUF

PPA

Court of Auditors

PFIA

Action 4.

Review of the appeal system and proposals for its optimization (ie

safeguards against abuse of the right to appeal, etc.)


October 2014

CPC

SAC


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fulfilled


Responsible

authorities for

fulfillment




ESI funds.

Action 1.

Design and implementation of training and development programme

for staff involved in the management of ESIF (trainings on public

procurement incl. by the Training academy on ESIF (IPA)


December 2016

IPA

MA

PPA

Action 2

Revision and update of existing systems of dissemination and

exchange of information between practitioners from Managing

authorities and beneficiaries and other stakeholders on public

procurement with a view to establishing a uniform practice.


December 2016

MA

CCU

EA AEUF

PPA

Court of Auditors

PFIA

Arrangements to ensure administrative

capacity for implementation and


procurement rules.

Action 1.

Strengthening and stability of the administrative capacity of the

Public Procurement Agency through increase in personnel and

conducting specialized trainings


December 2015

MEE

PAA

Action 2

Providing improved technical assistance to those who apply the rules

of public procurement through organization and conduction of

trainings and other needs identified from consultation of target

groups


December 2016

IPA

MA

PAA

7. The existence of a statistical — An effective system of result Action 1 Deadline for Action 1: NSI together with OP


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fulfilled


Responsible

authorities for

fulfillment

basis necessary to undertake

evaluations to assess the

effectiveness and impact of the

programmes. The existence of a

system of result indicators

necessary to select actions, which

most effectively contribute to

desired results, to monitor

progress towards results and to

undertake impact evaluation

indicators including:

— the selection of result

indicators for each programme

providing information on what

motivates the selection of policy

actions financed by the

programme;

— the establishment of targets

for these indicators;

— the consistency of each

indicator with the following

requisites: robustness and

statistical validation, clarity of

normative interpretation,

responsiveness to policy, timely

collection of data;

Selection of performance indicators for each operational program.

Performance and result indicators are relevant and linked to the

thematic axes, objectives and measures of an OP.

For statistical validation will apply an unified system for

requirements of collection of microdata, for applicable

methodologies and definitions of their scope and for the applicable

procedure for processing and aggregating data. The framework for

statistical validation will be developed in accordance with the

European Code of Practice and methodological requirements of the

statistical regulations of the European Commission and the

Parliament.

Within two months after

the adoption of each OP

MAs

Action 2

Check on compliance for each indicator in terms of its sustainability,

clarity of interpretation, timeliness of data collection and responsive

to policy.


September 2014

NSI together with OP

MAs

— Procedures in place to ensure that all

operations financed by the programme

adopt an effective system of indicators.

Action 1

Development of procedures to collect and process the microdata

necessary to assess the contribution of operations to specific

objectives of each OP.


Within two months after

the adoption of each OP

NSI together with OP

MAs


of 274

Table 9-3 Actions to fulfil applicable thematic ex-ante conditionalities

Applicable thematic ex-ante


national bodies are responsible

and which are unfulfilled or

partially fulfilled

Criteria not fulfilled Actions to be taken Deadline (date) Bodies

responsible for

fulfillment

1.1. Research and innovation:

The existence of a national or

regional smart specialization

strategy in line with the National

Reform Program, to leverage

private research and innovation

expenditure, which complies with

the features of well-performing

national or regional R&I systems.

A national or regional smart

specialization strategy is in place

that:

Smart Specialisation Strategy of R. of Bulgaria has been developed and adopted by

CM, Decision № 761/06.11.2014 as a precondition for fulfillment of ex-ante

conditionality 1.1 and 1.2 as per Annex XI of Regulation (EC) 1303/2013.

The actions to be taken are described in the detailed Action plan (Annex 6). The

actions aim at:

1. Improving the organizational structure for the governance of implementation of

IS3 and coordination with the OPs.

2. Promotion of private investments in R&D.

3. Ensuring synergy to solve national and regional challenges – identifying the

mechanism of implementation of horizontal and vertical links in the implementation

of IS3.

4. Intensifying the Entrepreneurial Discovery process, activating the links between

science and business by identifying the specific challenges and the ways to overcome

them.

June 2015

June 2015

June 2015

October 2015

October 2015

Ministry of

Economy

— is based on a SWOT or similar

analysis to concentrate resources on

a limited set of research

Based on SWOT analysis, quantative, qualitative and cross analyses, considering the

market demand, world trends and the results from several discussions (described in

the strategy) the thematic areas where Bulgaria has competitive advantages have

been defined and in which the interventions of the new programming period will be

implemented.

Defining the product and technology niches in which Bulgaria successfully competes

on the European and international markets is forthcoming (p.24-30 of the Action

Plan).

October 2015

Ministry of

Economy

Ministry of

Education and

Science

— outlines measures to stimulate

private RTD investment;

Elaboration of multiannual plan with indicative budget of the measures for IS3

implementation, including measures for stimulating the private investments in R§D

(p.10 of the Action Plan).

Support of innovative companies for development of new products and technologies

with the resources of the National Innovation Fund (p.11 of the Action Plan).

June 2015 Ministry of

Economy

MES, MTITC,

MAF


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partially fulfilled


responsible for

fulfillment

— contains a monitoring

mechanism.

Developing detailed structure of the monitoring and evaluation process (p.7 of the

Action Plan)

June 2015 ME, MES

A framework outlining available

budgetary resources for research and

innovation has been adopted.

Elaboration of multiannual plan with indicative budget of the measures for IS3

implementation (p.10 of the Action Plan).

June 2015 ME, MES,

MTITC, MAF

1.2 Research and Innovation

infrastructure. The existence of a

multiannual plan for budgeting

and prioritization of investments.

An indicative multi-annual plan for

budgeting and prioritization of

investments linked to Union

priorities, and, where appropriate,

the European Strategy Forum on

Research Infrastructures (ESFRI)

has been adopted.

Aligning research infrastructure and scientific priorities with economic priority areas

identified in IS3, including:

− Mapping of the research infrastructure capacity in Bulgaria;

− Update of Research Infrastructure roadmap;

− Update of the National Strategy of Scientific Research.

http://www.mon.bg/?go=page&pageId=74&subpageId=143

July 2015 MES

6.1. Water sector: The existence

of a) a water pricing policy which

provides adequate incentives for

users to use water resources

efficiently and b) an adequate

contribution of the different

water uses to the recovery of the

costs of water services at a rate

determined in the approved river

basin management plan for

investment supported by the

programmes.

In sectors supported by the ERDF

and the Cohesion Fund, a Member

State has ensured a contribution of

the different water uses to the

recovery of the costs of water

services by sector consistent with the

first indent of Article 9(1) of

Directive 2000/60/EC having regard,

where appropriate, to the social,

environmental and economic effects

of the recovery as well as the

geographic and climatic conditions

of the region or regions affected.

The economic analysis as described in Annex III to Directive 2000/60/EC has been

made for the purpose of the first River Basin Management Plan. This analysis

identifies what is the contribution of all three sectors (households, agriculture, and

industry) to the refunding of water service costs by taking into consideration any

possible cross subsidising.

This economic analysis was estimated by the European Commission as quite detailed

and well structured, in accordance with WATECO guidelines.

http://ec.europa.eu/environment/water/participation/map_mc/map.htm

The European Commission has exposed its notes on the assessment of River Basin

Management Plans: ―The climate change aspects are not considered directly in the

economic analysis‖.

To meet the requirements, two actions will be implemented.

Public procurements are announced and consultants will be selected to carry them

out.



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partially fulfilled


responsible for

fulfillment

Action 1.

Implementation of a national survey to ensure the needed data on climate change and

its impact on waters

The project was approved for funding from the Fund for Sustainable Development of

the Regions.

The public procurement under the PPA is announced and it is expected a consultant

to be selected.


December 2015

MOEW

Action 2.

Drawing up the water use economic analysis for the period 2007-2013, which would

be the basis of the measures and pricing policy in the second River Basin

Management Plans

The project was approved for funding from the Fund for Sustainable Development of

the Regions. The public procurement is announced and it is expected a consultant to

be selected.


December 2015

MOEW

Applying the pricing policy as referred to in Art. 9, paragraph 1, first subparagraph

of Directive 2000/60/EC, including:

Action 3.

Adoption of an Ordinance on the water use standards as referred to in Art. 117а,

paragraph 2 of the Water Act

Actions were initiated by the Minister of Environment and Water to the Ministers of

Regional Development, Agriculture and Food Economy, Energy and Health to

determine the experts and deadlines for providing suggestions related to the

definition of standards for water consumption. The updating of the standards for

irrigation started.

MRD is preparing Report on the implementation of the Action Plan of the WSS,

including an analysis of international experience and practice in the development and

implementation of legislative and strategic documents in the area of standards for

water consumption in the water sector, with a deadline for submission March 31,


December 2015

MOEW

MRD

MAF

MEE

MH


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partially fulfilled


responsible for

fulfillment

2015.

Action 4.

Adoption of legislative changes in the regulatory framework in the WSS sector

Additional agreement for consultancy services between the MRD and the World

Bank is signed to provide technical assistance to the State Energy and Water

Regulatory Commission in the part regulating the WSS sector. As a result from the

implementation of the contract the necessary legislative changes in the WSS sector

will be specified. •

The ratification from the National Assembly is forthcoming.


December 2015

MRD

SEWRC

MEW

Action 5.

Introduction of different prices of the service water supply for subscribed users using

within water consumption standards, and users exceeding such standards.

This commitment will be completed upon the adoption of the Ordinance on the water

consumption standards under article 117а, paragraph 2 of the Water Act.

MRD is preparing a report on the implementation of the Action Plan of the Strategy

for WSS, including study of international experience and practices for determining

the price of water (icl. two-stage / preferential prices) - Deadline for submission

January 31, 2015


December 2015

MEW

SEWRC

MRD

Action 6.

Drafting an amendment to the Tariff for water intake fees, water facility use fees and

pollution fees, whereby:

- higher fees are to be put in place where the water consumption standards are

exceeded (except for Water and Sewerage operators);

- different fees should be determined for pollution of purified and for non-purified

water;

- the Tariff should be brought in accordance with the amendments made to the Water


December 2014

MOEW


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partially fulfilled


responsible for

fulfillment

Act (Action 8)

A proposal was drafted concerning the methods of fee definition, for fees provided

for in the draft developed of the Law on the Amendment and Supplement of the

Water Act. The public tender for the development of a cost-recovery analysis

provides for fee grading and the respective economic reasoning thereto. The

pollution fee is planned to be determined in most cases based on the load of

pollutants (pollutant quantity and pollutant concentration measured).

In justification of the fees will be considered the motivating function of prices for

water use and whether the current water prices and charges for water leads to

efficient use of water, including water for irrigation. Under Bulgarian legislation in

all cases of abstraction for business purposes requires measuring draw amounts,

which is the main factor for sensitivity of prices and reducing inefficient and

wasteful use of water.

For the purposes of the implementation of subcriterion, the implementation of action

2, action 7 and action 8 will be needed.

The first River Basin Management Plans introduced the principle of cost-recovery if

water services in the Water and Sewerage sector are concerned.

The European Commission forwarded a remark on the assessment of River Basin

Management Plans:

―15. The cost-recovery should address a broad range of water services, including

impoundments, abstraction, storage, treatment and distribution of surface waters, and

collection, treatment and discharge of waste water, also when they are "self-

services", for instance self-abstraction for agriculture. The cost recovery should be

transparently presented for all relevant user sectors, and environment and resource

costs should be included in the costs recovered. Information should also be provided

on the incentive function of water pricing for all water services, with the aim of

ensuring an efficient use of water. Information on how the pollutant pays principle

has been taken into account should be provided in the RBMPs …‖.

Action 7. Deadline for Action 7:

December 2014

MEW


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partially fulfilled


responsible for

fulfillment

Drawing up a cost-recovery analysis, using the available statistics.

The first phase of the contract is under implementation.

• The analysis will include as many water services as possible, including

water dams, water intake for different purposes, surface water storage, purification

and distribution, waste water collection, purification and discharge, individual

independent drinking water supply, individual independent water supply in

agriculture and industry, etc. The analysis foresees the inclusion of water collection

for the purposes of energy production and for other purposes (industrial, agricultural,

drinking). As regards guaranteeing the contribution of agriculture to diffuse pollution

environmental expenses, it is provided that cost-recovery include plant-growing and

cattle-breeding. The analysis of cost recovery foresee navigation to be included as a

service - element of the environmental costs calculated on the basis of bilge and

ballast water of ships collected waste port sea and ships, collected oil and petroleum

from spills in tons annually. , The Bulgarian legislation requires obligatorily

measuring of extracted and discharged water volumes (Water Act, Art. 194,

paragraph 2 and Art. 194а), which helps identify the contribution of different water

users to cost-recovery.

Action 8.

Adoption of Law on the Amendment and Supplement of the Water Act, whereby

simple and applicable mechanisms for determining pollution fees should be

introduced.

A draft of a Law on the Amendment and Supplement of Water Act was drawn up

including the implementation of the needed amendments related to applying the

‗pollutant is the one to charge‘ and ensuring the resource expenses and the

environment expenses. Furthermore, the draft includes the introduction of fees for all

water services (activities which lead to significant impact on waters) as identified in

the first River Basin Management Plans and the introduction of a resource expenses

and environment expenses identification mechanism, where all said expenses need to

be taken into consideration upon the evaluation of cost-recovery.


July 2014

MOEW


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partially fulfilled


responsible for

fulfillment

The draft law is approved by internal coordination within the Ministry of

Environment and Water and is under preparation for inter-institutional consultation

before adoption of the Council of Ministers.

The adoption of a river basin

management plan for the river basin

district consistent with Article 13 of

Directive 2000/60/EC

Adoption of river basin management plans covering the territories included in

Operational Programmes, which include priorities for water investments, including:

Action 1.

Adoption of the second River Basin Management Plans.

The second River Basin Management Plans must fill in the gaps and meet the

recommendations of the European Commission.

A call for proposals for the selection of a consultant is forthcoming.


December 2015 г.

MOEW

Ensuring a Map of the monitoring networks installed for the purposes of Article 8

and Annex V, and presentation on a map of the results from the programmes carried

out according to these provisions for monitoring the status of surface waters

(environmental and chemical), underground waters (chemical and quantitative) and

the protected territories.

There are monitoring maps and networks, however these are further developed in

terms of binding to specific sources of pressure, ensuring the information needed

both for the assessment of the status of the water bodies and for clear and precise

planning of the measures and evaluation of their effect.


The European Commission has forwarded its remarks in the assessment of the first



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partially fulfilled


responsible for

fulfillment

River Basin Management Plans:


―2. Monitoring should be strengthened as there is not enough monitoring data related

to biological and chemical elements and this is also a reason for low confidence in

the assessment of their status .

4. There is a significant gap in the intercalibration and the development of

methodologies, the expert judgement approach is often used. There is no fully

developed and formally adopted classification system for the assessment of the

ecological status. These gaps should be filled.

6. The identification of river basin specific pollutants needs to be more transparent,

with clear information on how pollutants were selected, how and where they were

monitored, where there are transcendences and how such transcendences have been

taken into account in the assessment of ecological status. It is important that there is

an ambitious approach to combating chemical pollution and those adequate measures

are put in place.

9. Mercury, hexachlorobenzene and hexachlorobutadiene should be monitored in

biota for comparison with the biota standards in the EQSD, unless water EQS

providing an equivalent level of protection are derived. Biota EQS should also be

considered for other substances where analysis in water is problematic. Trend

monitoring in sediment or biota is specified for several priority substances in

Directive 2008/105/EC Article 3(3) and will need to be reflected in the next River

Basin Management Plan.

10. Groundwater trend assessments should be carried out at all RBDs.‖

The following three actions will be carried out to cover the requirements.

Action 2.

Implementation of a three-year programme for completion of intercalibration of the

methods for analysis and values of quality of biological elements (QBE) applicable

to the types of surface waters in Bulgaria corresponding to certain common EU

types.


December 2016

MOEW



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partially fulfilled


responsible for

fulfillment

A program for development and intercalibration of analysis methods by categories of

surface waters is under implementation.

Action 3.

National studies to be carried out to overcome specified deficiencies.

1. Updating the typology and the classification system for assessment of surface

water bodies of the categories ―river‖, ―lake‖ and ―transitional waters‖.

2. Assessment of hydromorphological status water bodies of the categories ―river‖,

―lake‖ and ―transitional waters‖ and definition of the impact over the ecological

status caused by hydromorphological changes

3. Study and assessment of quantitative status of underground water bodies

4. Study and assessment of chemical status of underground water bodies

5. Study and assessment of the impact of diffuse sources of pollution over the status

of surface waters

6. Study and assessment of the chemical condition of the surface water.

The projects were approved for funding from the Fund for Sustainable Development

of the Regions. One of the suspended for appeal tenders is re-announced(4). The

documentation under the PPA is currently being reviewed and the second appealed

public procurement(3) is planned to be re-announced. Four public procurements

are announced(1,2,5,6)

For biological and hydromorphological elements - the second RBMP will have all

the assessment methods that will be developed and validated with projects on points

1 and 2 and action 2. Bulgaria currently monitor and provide data for all QBE, in the

case of the Danube the monitoring will start in 2014 .

Regarding hydromorphological elements it is envisaged to carry out a pilot

monitoring to validate the method. The full monitoring is expected to start with the

second RBMP.

The supplying of equipment (GC / MS / MS, HPLC / MS / MS, GC / MS and other

ancillary equipment), should be completed by the end of 2013. This will create


December 2015

MOEW


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partially fulfilled


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fulfillment

technical possibility to analyze specific pollutants.

With the implementation of planned project in p.6 is expected to gather information

and to develop methods for monitoring Hg, HCB, HCBD, to select appropriate

indicator species, categories of surface water and concrete posts, selection of

monitoring trends of accumulative matrices and output of background concentrations

and determination of bioavailability of metals.

Currently a study is conducted and the organization of work in the laboratories of the

EEA is on-going in order to shorten time to analysis of PBDE, TBT, C10- 13

Chloroalkanes, after the publication of improved methods for their analysis of the

results (CEN 424 - by the end of 2014), as well as to provide a clean laboratory

environment for analysis of DEHP in Bulgaria.

Action 4.

Investments for further building of monitoring networks were planned in OPE 2014-

2020.

Planned in the OPE 2014-2020 draft. At the implementation of the national studies

(under action 4) it was provided for to reason the needed the locations and the

number of the additional monitoring points and of the optimization of monitoring

programmes according to the identified specific pressure and impact owed to human

activity.

Upon the start of OPE 2014-2020 and upon the implementation of action 4, the

network further building projects may be drafted.

There is a list of ecologic targets identified according to Article 4 for surface

waters, underground waters and protected areas, and the exclusions thereof but they

will be further developed.


The European Commission has forwarded its remarks on the assessment of the first


December 2016

MOEW



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partially fulfilled


responsible for

fulfillment

River Basin Management Plans:


―7. The ecological objectives defined are of a very general nature, there are no

quantitative dimensions and easily measurable and verifiable criteria for monitoring

their achievement. Ecological objectives should be better specified.

3. The existing pressures are not being sufficiently detected, particularly where

complex pressure factors exist, e.g. combined pollution from diffuse and point

sources, or combined pressures from pollution and hydromorphological alterations.

Pressures should be sufficiently detected;

5. Where there are currently high uncertainties in the characterization of the RBDs,

identification of pressures, and in the assessment of status, these need to be

addressed in the current cycle, to ensure that adequate measures can be put in place

before the next cycle

12. The identification of exemptions is incomplete and should be completed in the

next RBMP cycle. While the WFD does provide for exemptions, there are specific

criteria that must be fulfilled for their use to be justified. The application of

exemptions needs to be more transparent and the reasons for the exemptions should

be clearly justified in the plans. ―

The recommendations will be completed by the specified national studies in

conformity with Action 4.

As regards the summary of the measures undertaken under Article 11,

paragraph 5 for the water facilities, which fail to achieve the targets as identified

under Article 4, measures are planned such as specified in the report under Art.15 of

the Framework Water Directive (presented by Bulgaria to the European Commission

in 2010)


The planned measures are to be announced for financing under the Norwegian

programme (if proposals for the relevant projects are received).

6.2. Waste sector: Promoting

economically and

environmentally sustainable

The existence of one or more waste

management plans as required under

Action 1 Deadline for Action 1.

August 2014

MOEW




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partially fulfilled


responsible for

fulfillment

investments in the waste sector

particularly through the

development of waste

management plans consistent

with Directive 2008/98/EC, and

with the waste hierarchy.

Article 28 of Directive 2008/98/EC; Adoption of a National Waste Management Plan for the period 2014-2020 г.

The Plan will be in accordance with the requirements of Art.28 of the Framework

Waste Directive.

On 22.08.13, a contract was signed with a contractor for the development of the Plan

(and the Programme thereto).

A draft National Plan for Waste Management (NPWM) for the period 2014-2020 is

presented. On the website of the MOEW are published the analyzes, prepared by

consultants, being the first part of publication of the Programme for public

consultation. Forthcoming steps:

1) Publication of the draft plan or program on the website of the Ministry, as the

second part of public discussion and public consultation on the draft plan and

programs in the context of the environmental assessment.

2) Submission of the plan to Council of Ministers - August 2014

In developing the 2014-2020 NPWM into account are taken all recommendations

and examples of measures set out in the Roadmap for Bulgaria. In developing 2014-

2020 NPWM also was considered the methodological guidance of the European

Commission, DG "Environment" to develop plans for waste management.

The existence of waste prevention

programmes, as required under

Article 29 of Directive 2008/98/EC;

Action 1

Preparation of Waste Generation Prevention Programme – as part of the National

Waste Management Plan for the period 2014-2020 г.

A draft of the National Waste Generation Prevention Programme is prepared and it is

part of the National Waste Management Plan.

The National Waste Generation Prevention Programme includes objectives,

measures and key indicators and is oriented towards highest level in the hierarchy of

waste management.

Deadline for Action 1.

August 2014

MOEW


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partially fulfilled


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fulfillment

See TExAC 6.2.1

Necessary measures to achieve the

targets on preparation for re-use and

recycling by 2020 consistent with

Article 11(2) of Directive

2008/98/EC have been adopted.

Action 1

Adoption of National Waste Management Plan for the period 2014-2020 г.

The measures for implementation of the targets will also be included in the new

National Waste Management Plan.

See TExAC 6.2.1

The application of the principle ‗polluter has to pay‘, which requires the waste

disposal expenses to be paid by the waste generator, is set in the Waste Management

Act. The producers of waste and the owners of waste should manage it in a way,

which guarantees high degree of protection for the environment and for human

health, by taking into account the real expenses on environment derived from waste

generation and waste management. The application of the principle will also be laid

down in the new National Waste Management Plan for the period 2014-2020. The

principle of ―extended responsibility of the producer‖ was imposed to strengthen

waste prevention, re-use, recycling and other kind of utilization and to reduce

household waste management expenses the responsibility whereof, according to the

Bulgarian Waste Management Act lies on the mayor of the municipality. The Waste

Management Act and the implementing regulations stipulate measures to guarantee

that each natural person or legal entity, which develops, produces, processes, treats,

sells or imports products (producer of the product) where wide spread waste is

formed, shall bear extended producers responsibility. These measures include

obligations for subsequent collection and treatment, here included recycling of waste

and the financial liability for carrying out these activities.

In 2010 economic instruments were introduced for the municipalities, responsible for

management of waste, for fulfillment of the objectives: waste depositing deductions

(deposition fee) which purpose is to reduce the quantity of waste received for

deposition, encouragement of separated collection of recyclable waste, an increase in

the quantities of recycled and utilized waste and acceleration of building of regional

systems for treatment of household waste and establishment of technical

infrastructure for waste recycling and utilization as provided in the National Waste

Management Plan. The introduction of the amendment to the 2013 Local Taxes and

Deadline for Action 1.

August 2014

MOEW


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partially fulfilled


responsible for

fulfillment

Fees Act encourages the municipalities to introduce a household waste management

fee based on the quantities of generated waste. The amendment shall be enforced as

of 2015.

According to the Waste Management Act, the construction waste treatment systems

shall ensure by 1 January 2020 the latest their re-use, recycling or other utilization of

materials composed of non-hazardous construction waste, including those in the case

of embankment activities by means of replacement of other materials by waste by a

quantity not less than 70 per cent of their total weight excluding unpolluted soils, soil

or rock bulk masses excavated in natural condition.

In NPWM are set binding targets for municipal recycling and use of household waste

and the reduction of biodegradable waste. The programs of measures to achieve the

objectives of NPWM provide a number of activities to improve the administrative

capacity at the municipal level to improve waste management, including control

activities, information on waste data, methodological support from the MOEW and

others.

To achieve the National target for re-use, recycling or other utilization of materials

the persons in charge will be the entities which were assigned for the construction

works and which ensure selective division and utilization of materials.

The analysis on which the objectives of NPWM 2014 - 2020 are based, and the

measures to achieve them, extensively is presented in the application of the

Bulgarian scheme for producer responsibility. The conclusion is that as an approach

and as results achieved the scheme was successful and achieves targets for recycling

and recovery of these waste streams. Deficiencies are identified and for their

overcoming it is proposed an individual program of measures to improve the scheme,

such as the expansion and improvement of audits to the recovery organizations and

others.

7.4. Development of smart

energy distribution, storage and

transmission systems. The

existence of comprehensive plans

for investments in smart energy

infrastructure, and of regulatory

measures, which contribute to

Comprehensive plans describing the

national energy infrastructure

priorities are in place

Approval of the Ten-year Network Development Plan (TYNDP) of Bulgartransgaz

under Article 22 of Directive 2009/72/EC for the period 2014-2023, including:

1. Preparing a project for a decision for certification of the Operator (BTG)

2. Notifying the EC

3. Receiving the EC Statement

2015-01-31

2015-02-02

2015-06-02

SEWRC

SEWRC

EC


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partially fulfilled


responsible for

fulfillment

improving energy efficiency and

security of supply.

4. Issuing Final Certification Decision

5. Publishing the final decision in the Official Gazette of the Community

2015-08-02

2015-09-02

SEWRC

SEWRC

— in accordance with Article 22 of

Directive 2009/72/EC and of

Directive 2009/73/EC, where

applicable, and

See actions for 7.4.1 criteria 2015-09-02 SEWRC


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10. REDUCTION OF THE ADMINISTRATIVE BURDEN FOR THE BENEFICIARIES

ULessons learned from the programming period 2007-2013 г.

(The data used are from a study of ESTAT OOD, carried out in the period December

2012 – January 2013.)

The main lesson learned from the period 2007-2013 is that the administrative burden is

one of the biggest impediments preventing the initiation of more interest for

participation in OPC procedures, as well as their effective implementation. Therefore

using the learning-by-doing principle, activities have been undertaken to relieve

candidates/beneficiaries, such as:

In May 2012 an institutional reform was carried out aiming to create a more

simplified and efficient management structure of OPC. The Intermediate Body

of the OP was closed to avoid duplication of responsibilities and monitoring and

control functions, and to reduce time for document review and decision taking.

The volume of documents to be submitted with the application has been

reduced; the content of some declarations has been simplified; the contracting

procedure has been streamlined; an option for introducing functional corrections

to the project budget in the event of errors/inconsistencies admitted by

candidates has been adopted; monthly reporting on the implementation has been

dropped; the number of requests for clarification by beneficiaries during the

verification of project implementation reports has been reduced.

An electronic submission under the procedure BG161PO003-1.2.04

―Development of applied research in the research organisations in Bulgaria‖ has

been introduced as a pilot project.

Since April 2013 a new Decree of the Council of Ministers (Nr. 69 dated 11th

March 2013) on the conditions and procedure for determination of contractor on

the part of beneficiaries of contracted grant financial aid from the structural

funds and the Cohesion Fund of the European Union, the Black Sea Basin Joint

Operational Programme 2007-2013, and the EEA and Norway Grants has been

enforced. This act repeals previous Decree Nr. 55 dated 12th

March 2007 of the

Council of Ministers and lays out a new procedure to simplify the system for

selection of contractor and accelerate the project implementation.

The MA recognises the positive results achieved so far in connection with reducing the

administrative burden and, at the same time, plans to take further action in this regard in

the new programming period.

UMeasures planned for the programming period 2014-2020

The common vision to reduce the administrative burden within the overall process of

coordination, management, implementation, monitoring and control of EU funds is to be

achieved by creating a stable and predictable environment for the implementation of

ESI-funded programmes, introducing maximum electronisation in the communication

between beneficiaries and the MA, optimising administrative procedures, dropping

unnecessary obligations for beneficiaries and synchronising rules. To this end, the

following specific measures have been envisaged:

UDocuments and document processing


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Standardised application, evaluation and reporting forms will be introduced, as this

process is expected to be finalized in the 3rd

trimester of 2015 with the introduction of

UMIS 2020:

On the one hand – significant reduction of the burden for beneficiaries and

expected reduction of problems and queries related to the completion of the

application form, respectively a lower number of inaccurately completed forms

submitted, hence also a lower number of proposals rejected on such grounds;

On the other hand – standardisation is a prerequisite for successful introduction

of full electronisation of processes as per the Regulation. Although electronic

systems should allow for some flexibility according to the specifics of the

procedure, a limited number of standardised forms should be used, e.g. forms for

infrastructure projects, soft-measure projects etc.

UWith a view to optimising the document processing, the following measures will be

initiated:

Enlarging the scope of electronic submission of project proposals and electronic

project reporting – indicative deadline for implementation is the 3rd trimester of

2015 with the introduction of UMIS 2020 ;

Exploring the possibility of suspending the submission of the same documents

more than once, and precising/reducing the cases in which these documents have

to be submitted in original or notarized and additional copies - indicative

implementation deadline the end of 2015;

Introducing technical provisions to conduct the entire communication between

applicants/beneficiaries and the MAs of the programmes co-funded from the

ESIF, as well as between the separate units within the management system of

EU funds via UMIS 2020- indicative deadline for implementation is the 3rd

trimester of 2015 with the expected introduction of the fully operational version

of UMIS 2020

Dropping the requirement to submit administrative and other documents issued

by public institutions in hard copies in cases of availability of publicly accessible

electronic registers or in cases of provisions for regulated access through official

channels (automated data submission under the E-Government Act) for access to

such documents – implemented with the adoption of the legal documents for the

implementation of the programmes funded under ESIF .

Preparation of project proposals

The following specific measures have been envisaged to reduce the administrative

burden related to the preparation of project proposals:

Unification of the rules and requirements for investment projects under the

different programmes related to preliminary preparation, preparation of detailed

justification, objectives, indicators, budget and timetable for the implementation

of project activities, pre-feasibility studies, cost-benefit analyses etc. – indicative

deadline for implementation the middle of 2015;;

Synchronisation of the timeframe for implementation of complementary

schemes under different operational programmes – implemented with the

adoption of Decree № 107 of 10.05.2014, section III;


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Seeking opportunities to introduce vouchers and voucher schemes (eg. for

cooperation, specialized corporate services and trainings) with reduced deadlines

for receiving of the support and start of the implementation – the vouchers are

among the planned support approaches (with grant and financial instruments)

under OPIC and similar measures are envisaged for the whole programming

period.

UEvaluation of project proposals, award of grants and implementation of projects


burden related to the evaluation of project proposals:

Improving the quality of the evaluation process by setting minimum quality

requirements for submitted proposals, whereby no funding will be awarded to

projects below the established quality threshold - implemented with the adoption

of Decree № 107 of 10.05.2014;

Transparent evaluation procedure with electronisation of the projects to be

evaluated and enabling involvement of high-quality external expertise, including

international participation, especially in areas such as innovation – indicative

deadline for implementation the middle of 2015 with the introduction of the E-

evaluation within UMIS 2020;

When evaluating projects in procedures for direct grant award shall be included

the opportunity for communication between the MA and the applicants for

correction of project proposals – implemented with the adoption of Decree №

107 of 10.05.2014;

Allowing a simplified approach to grant funding to direct beneficiaries -

administrative structures via "Budget lines" - implemented with the adoption of

the Decree № 107 of 10.05.2014, Article 29, paragraph 1.

UProcedures for selection of contractors


burden related to contractor selection procedures under projects co-financed by the EU:

Creating clearly structured and standardised rules to introduce a unified

approach to the requirements for beneficiaries, and public and private entities

concerning contractor selection. The existence of straightforward rules should

eliminate any possibility for free interpretation on the part of the MA and

supervisory bodies. In cases when the adopted statutory rules decree that the

contractor selection should follow a certain procedure based on contract value or

type of beneficiary, the latter should be administered accordingly, without

inclusion of further requirements – implemented with the adoption of Decree

№118 of 20.05.2014;

Using a simplified contractor selection procedure in accordance with the

statutory requirements to ensure observance of the principles of sound financial

management, openness and transparency, equality and free competition -

implemented with the adoption of Decree №118 of 20.05.2014;

Electronization of the processes related to the selection of a contractor, incl.

enabling e-tendering - indicative deadline for implementation is the third

trimester of 2015, when UMIS 2020 is expected to be finalized and fully

operational.


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UVerification and payment

Similar to the submission stage, the volume of administrative documents at the

verification stage should be reduced to a minimum. In this regard the following has

been foreseen:

Exploring the possibilities to approve not only bank guarantees for advance

payments but also guarantees provided by another financial institution or

coverage by instrument provided as a guarantee by a public entity – indicative

implementation deadline the end of 2015;

Standardised reporting forms should set a limit on the volume of details

provided to guarantee that just the most essential information has been included

in order to establish the compliance between the implementation and initial

intentions – establishment of unifed models for all programmes included in the

UMIS 2020 of the following documents is envisaged: application form, request

for payment; financial report, technical report and the indicative deadline for the

implementation of this mesure is the 3rd

trimester of 2015;

Application of accounting rules for simplified costs to cover all ESI-funded

programmes. Given the failed application of simplified costs in the present

programming period, an adoption of a relevant national methodology has been

foreseen for the period 2014-2020 – indicative deadline for implementation is

the middle of 2015;

Maximum standardisation of verification and reimbursement procedures for all

programmes with clear specification of rules, functions and responsibilities in

order to avoid duplication of activities and checks of identical documents and

information at several stages; clear identification of responsible persons at each

stage of the verification process – implemented with the adopton of Decree 119

frim 20.05.2014 for the adoption of national rules for elegibility of the costs

under the operational programmes;

As regards payment, the lack of resources available to the MA will be excluded

as a reason for delayed reimbursement of funds to beneficiaries. Establishing

such a condition, beyond the control of the beneficiaries, will transfer the risk of

delayed reimbursement on the part of the MA to the beneficiary. In addition to

which, the right of the beneficiary to claim interest for the period of delay will

be retained – this issued has already been solved.


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11. HORIZONTAL PRINCIPLES

USustainable development

Sustainable development is one of the key priorities of the National Development

Programme: Bulgaria 2020, which outlines the main applicable challenges and

opportunities for the country over the next few years.

The key legislation and sectoral strategic documents in the field of sustainable

development and environmental protection include:

Environmental Protection Act;

Disaster Protection Act;

Energy Act;

National Strategy for Regional Development for the period 2012-2022; National

Regional Development Strategy (NRDS) for the period 2012-2022

Water Act;

Waste Management Act;

National Strategy for Management and Development of the Water Sector in the

Republic of Bulgaria; National Strategy for Water Sector Management and

Development in the Republic of Bulgaria.

Maritime Strategy of the Republic of Bulgaria;

Strategic Action Plan for the Environmental Protection and Rehabilitation of the

Black Sea;

National Programme for the Requisite Measures in Conditions of Drought;

National Strategy for Biodiversity Conservation;

National Programme for Waste Management for the period 2009-2013;

National Programme for Waste Management for the period 2014-2020 (to be

developed by end 2013);

National Action Programme for Sustainable Land Management and Combat to

Desertification (2007-2013);

National Programme for Action on Environment and Health 2008-2013;

National Programme for Disaster Protection 2009-2013;

Third National Action Plan on Climate Change 2013-2020;

National Plan for Protection from Natural Disasters

National Long-Term Programme for Promoting the Use of Renewable Energy

Sources 2005-2015;

National Action Plan on Renewable Energy Sources, valid until 2020

Energy Strategy of the Republic of Bulgaria until 2020, which includes goals

connected with improving security of gas supplies, increasing energy efficiency

and the use of renewable energy;


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Second National Action Plan on Energy Efficiency 2011-2013 and its respective

report.

The documents take into account the main priorities and objectives of the European

policy on sustainable development and are integral part of all policies related to the

development of the country.

The necessary provisions to ensure the application of the principle of sustainable

development in the management of ESI funds were established during the programming

of the different measures and interventions. The OPIC working group includes

representatives of the main institutions responsible for the implementation of policies on

environmental protection and sustainable development and representatives of non-

governmental organisations.

At the same time, the Council of Ministers has adopted Guidelines on Mainstreaming of

Environmental Policy and Climate Change Policy in Cohesion Policy, Common

Agricultural Policy and Common Fisheries Policy Funds 2014-2020. The Guidelines set

out specific measures and types of actions for the environmental policy and the climate

change policy to be mainstreamed by the respective national responsible authorities in

the Partnership Agreement and the programmes to be supported by the ESI Funds in the

period 2014-2020. The purpose of the Guidelines is to ensure the implementation of a

single, systematic and coordinated approach in the mainstreaming of the environmental

policy and the climate change policy in the main programming documents for the period

2014-2020, as well as reporting and monitoring of results and achievement of specific

and measurable national targets consistent with the targets of the EU.

The document ―Guidelines on Mainstreaming of Environmental Policy and Climate

Change Policy in Cohesion Policy, Common Agricultural Policy and Common Fisheries

Policy Funds 2014-2020. Phase: Implementation of Operational Programmes and the

Partnership Agreement‖ forms part of the Guidelines. It envisages developing a system

of criteria to ensure that in the period 2014-2020 the allocation of ESI funds will

prioritise projects that contribute to a higher degree to the implementation of

environmental policies and climate change policies. Also particularly important in the

preparation and implementation of the operational programmes will be to take account

of the requirements for protection and improvement of the environment, principally

through application of the precautionary principle, the principle of preventive action and

the polluter pays principle.

The effective implementation of the Guidelines, Phase 1 and Phase 2 and the integration

of the envisaged measures in the programmes to be supported from the ESI Funds will

be ensured through continuous dialogue and coordination by all stakeholders. In this

regard, it has been envisaged to establish a national network with representation of the

competent environmental authorities, MAs, and the non-governmental and business

sectors in the country.

In accordance with the specific provisions of the CPR and other applicable European

legislation, the polluter pays principle will be systematically applied across the

Programme and projects. Prevention and recovery costs will be borne by the agent of

potential or actual pollution to the environment. In practice, the principle will be applied

through:

Ensuring the enforcement of the national and European legislation in the field of

environmental licenses, assessments and sustainable development for all

investment under the programmes;


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Promoting the introduction of quality management systems in the field of the

environment in enterprises and organisations;

Supporting the development of environmentally-friendly activities (work

without using paper, green public procurement);

Preparing an environmental impact assessment for each investment, when

required by the European and/or national legislation;

Preparing full cost-benefit analysis for major investment projects, particularly

with regard to public infrastructure and municipal environmental facilities;

Making support conditional on the presence of full compliance of the actions to

be funded with the national legislation in the field of the environment, as well as

on the full payment of all taxes and tolls for activities with environmental

impacts.

Considering the importance of green procurement as one of the factors contributing to

sustainable development, adopted is National Strategy for the Development of the

Public Procurement Sector in Bulgaria for 2014 - 202064

, which supports the policy of

public procurement and provides for the development of green public procurement, i.e.

―green public procurement‖( GPP). GPP is an important tool to facilitate the

implementation of measures in the field of sustainable development, as a tool for this is

public contracts. Through them may impose conditions for the imposition of green

practices such as reducing the use of paper, the use of "green products" in the object of

orders disclosure of green jobs certification of sustainable buildings criteria for

environmental quality / eco-balance the construction site, optimal use of resources and

water application requirements for energy efficiency and energy savings in the supply of

equipment and vehicles, and others who are provided for in the upcoming practical

guide for preparing for the such contracts.

UPromotion of equality between men and women, non-discrimination and

accessibility

The principles of gender equality, non-discrimination and accessibility are embedded in

the Bulgarian legislative and institutional system and apply to all spheres of social life,

including property status, economic activities, etc. The overall framework ensuring

compliance with these horizontal principles includes: Constitution of the Republic of

Bulgaria (Article 6); Act on Protection Against Discrimination; Integration of People

with Disabilities Act; National Strategy for Equal Opportunities for People with

Disabilities 2008-2015; National Strategy for Promotion of Gender Equality 2009-2015;

Long-term Strategy for the Employment of People with Disabilities 2011–2020.

The application of these principles to the management of ESI funds is similarly ensured

at the various stages of preparation and implementation of OPIC 2014-2020.

The necessary requirements for the programming stage have been ensured through:

Determining the composition of the working group for the preparation of OPIC

to include a wide range of organisations in the field of equal opportunities and

non-discrimination, including the Commission for Protection against

Discrimination and the National Council for Cooperation on Ethnic and

Integration Issues, NGOs in the field of gender equality and non-discrimination,

64

Approved by CoM Decree № 498/11.07.2014


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the Ministry of Labour and Social Policy, which has horizontal competences

related to the coordination and control of the national policy on equal

opportunities;

Designating a core function of the working group to ensure compliance with the

horizontal principles during the process;

Including a requirement to review and, respectively, advise on issues relating to

non-discrimination in the requirements for the technical assistance and the ex-

ante evaluation.

During the implementation of OPIC the application of the principles of gender equality,

non-discrimination and accessibility will be ensured through the following measures:

The MA will fulfil the horizontal guidelines on the application of these

principles at the various stages of the programme implementation to be issued by

the Central Coordination Unit. Based on these guidelines, beneficiaries‘

contracts will include specific requirements on the application of the principles

in the project implementation;

As part of the evaluation of project proposals, the compatibility with the

principles of gender equality, non-discrimination and accessibility will be

assessed;

Ensuring compliance with the horizontal principles will be an integral part of

project monitoring. Project implementation reports will include a description of

the contribution to the principles of equality, non-discrimination and

accessibility;

The violation of the principles during implementation, as well as the failure to

fulfil the commitments described in the project proposal, related to those

principles, will lead to imposing financial corrections, which will be based on

the extent and impact of the non-fulfillment;

During the preparation of each OPIC annual implementation report or progress

report, the MA will provide information on the current state of fulfillment of the

horizontal principles under each axis;

During the programming period at least one evaluation of the fulfillment of the

principles of equality, non-discrimination and accessibility will be carried out,

either separately or as part of an overall evaluation of the implementation of

OPIC;

Representatives of non-governmental organizations in the field of equal

opportunities, non-discrimination and accessibility will be included in the

Monitoring Committee of OPIC;

This mechanism will build upon the approach used during the programming

period 2007-2013 and reinforce some of its elements with a view to achieving

higher efficiency.

UAccessibility

Based on the guidelines to be prepared by the Central Coordination Unit for all

applicable interventions, the MA should include the criterion compliance with the the

principle of accessibility in the evaluation of project proposals. The same principle

should be included in the contracts of beneficiaries with approved projects.


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On the other hand, with the help of transparency, publicity and information tools,

related to the funding opportunities to be provided by the ESI Funds, access to

investment for all potential beneficiaries and the general public will be facilitated. This

will enable both efficient participation in the implementation of EU-funded projects and

effective use of the development incentives offered by them.

12. SEPARATE ELEMENTS

12.1. Relevant partners involved in preparation of programme

Ministry of Economy and Energy:

General Directorate ―European Funds for Competitiveness‖

Directorate ―Business environment and SME policy‖;

Directorate ―Investments, innovations and entrepreneurship‖;

Directorate ―Energy Strategy and Sustainable Energy Development Policies;

Directorate ―Tourist Policy‖;

Directorate ―Tourism Marketing, Advertising and Information‖;

Ministry of Finance:

Directorate ―Economic and Financial Policy‖;

Directorate ―National Fund‖;

Directorate ―Operational Programme Administrative Capacity‖

Ministry of Transport, Information Technologies and Communications;

Ministry of Education and Science;

Ministry of Environment and Waters;

Ministry of Agriculture and Foods;

Ministry of Regional Development;

Ministry of Labour and Social Policy;

Ministry of Health

Central Coordination Unit;

Administration of the Council of Ministers;

Directorate ―Strategic development and coordination‖

Directorate ―Operational Programme Technical Assistance‖.

Agency for Sustainable Energy Development;

Executive Agency for Promotion of Small and Medium Enterprises;

Invest Bulgaria Agency;

Executive Agency “Audit of EU Funds”

Patent Office

National Statistical Institute

State Fund “Agriculture”:

Department „Authorization of Payments for Implementation of Measures for

Development of Rural Regions‖;


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Department „Contracting for Implementation of Measures for Development of

Rural Regions‖;

Department ―Certification of Expenses under RDP‖.

Executive Agency for Fisheries and Aquaculture;

Representatives of academia;

Anti-Discrimination Commission;

National Association of the Municipalities in the Republic of Bulgaria;

Regional Development Council of the South-West Region;

Regional Development Council of the North-West Region;

Regional Development Council of the South-East Region;

Regional Development Council of the North-East Region;

Regional Development Council of the South-Central Region;

Regional Development Council of the North-Central Region;

Confederation of Employers and Industrialists in Bulgaria;

Association of Industrial Capital in Bulgaria;

Bulgarian Trade and Commerce Chamber;

Bulgarian Industrial Association;

Confederation of the Independent Syndicates in Bulgaria;

Confederation of Labour “Podkrepa”;

Nationally Representative Organizations of and for People with Disabilities;

Non-governmental Organizations from Thematic Group “Social Organizations”;

Non-governmental Organizations from Thematic Group “Organizations

operating in the Sphere of Education, Science and Culture”;

Non-governmental Organizations from Thematic Group “Environmental

Organizations”;

Non-governmental Organizations from Thematic Group “Development Policies”.


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LIST OF ANNEXES

ANNEX 1: REPORT ON THE EX-ANTE EVALUATION

ANNEX 2: REPORT ON THE ENVIRONMENTAL ASSESSMENT

ANNEX 3: EX-ANTE ASSESSMENT AND INVESTMENT STRATEGY FOR THE EFFECTIVE USE

OF FINANCIAL INSTRUMENTS UNDER OPIC

ANNEX 4: CITIZENS‘ SUMMARY

ANNEX 5: RIS3 GOVERNANCE STRUCTURE

ANNEX 6: ACTION PLAN FOR COMPLIANCE WITH EX ANTE CONDITIONALITIES 1.1 AND 1.2

Operational Programme Innovation and Competitiveness …OPIC 2014-2020, 2014BG16RFOP002 March 2015...

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Transcript of Operational Programme Innovation and Competitiveness …OPIC 2014-2020, 2014BG16RFOP002 March 2015...