Annexes to COM(2009)590 - Annual Report of the Instrument for Structural Policy for Pre-Accession (ISPA) 2008 [SEC(2009)1443] - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2009)590 - Annual Report of the Instrument for Structural Policy for Pre-Accession (ISPA) 2008 [SEC(2009)1443]. |
|---|---|
| document | COM(2009)590  |
| date | October 29, 2009 |
Due to the slow progress in ISPA project implementation it was decided that no ISPA audits would be carried out in Croatia during 2008. The main emphasis for the audit unit in the Directorate General for Regional Policy for 2008 related to the preparations for the introduction of IPA in Croatia. Nevertheless, an internal audit of the EC Delegation in Zagreb did take place. The main conclusion of this audit was that ISPA projects were being managed effectively by the Delegation. Furthermore it was recommended that the EC Delegation apply more pressure to the Croatian authorities to speed up project implementation, as well as provide additional training to the implementing body in relation to quality control. One other observation related to the difficulty the EC Delegation had experienced in securing suitable staff. This resulted from the lengthy, inflexible and restrictive recruitment procedures that the EC Delegation is obliged to use.
DIS
The requirement for the DIS accreditation of the implementing agency in Croatia, the CFCA, follows the stipulations of Article 164 of the Financial Regulation. DIS accreditation was awarded by the Commission on 13th February 2006.
12. RISK ASSESSMENT
The audit strategy planned for 2008 and subsequent years has been based on the results of an analysis of the state of ISPA implementation and the related objectives of the Audit Directorate of DG Regional Policy. The audit strategy sets out the objectives which are defined by the senior management of DG Regional Policy. These objectives are defined on the basis of detailed discussions with the operational directorates during which information on potential risk is shared. The audit strategy then sets out the actions to achieve the objectives, taking account of the risks identified. In general, risk is minimized by implementing this strategy. No audits were carried out in 2008 due to the limited progress in implementation.
Under the system of ex-ante approval, priority is given to ensuring that sufficient control procedures are put in place regarding project implementation and payments. However, the management of pre-accession funds carries an inherent risk since the funds are delivered by a variety of organisations and systems. Eligibility of expenditure is determined by compliance with rules and conditions fixed at Community and national level which can lead to complexity and risk of misinterpretation. Currently the Croatian authorities plan to submit an application for the waiving of ex-ante controls during the second half of 2010 for ISPA projects in accordance with the provisions of Regulation 1266/1999.
13. EUROPEAN COURT OF AUDITORS FINDINGS
No missions or audits were carried out in Croatia during 2008.
14. CO-FINANCING PARTNERS – EIB, EBRD AND KFW
Given their expertise in project preparation and implementation, the Commission has maintained regular contact with these lending institutions, both at a horizontal level to co-ordinate policy and methodological issues related to programming and implementation, and at country level. The specialist skills of these Banks in structuring grant/loan combinations of funding, including public-private partnership arrangements, is highly useful for improving the quality of projects funded from ISPA. Nevertheless the EIB is not involved in any ISPA project in Croatia.
The EBRD is the only IFI which is actively involved in an ISPA project in Croatia with the provision of a €10 mln. loan for an environmental project approved in 2005 – the Karlovac Water and Wastewater Treatment Programme.
Contribution to Community policies
15. PUBLIC PROCUREMENT
From the start of ISPA, the fulfilment of legal requirements for sound, fair and transparent public procurement as enshrined in the PRAG has proved to be a major challenge. In many cases, ensuring compliance with EU procurement principles has lead to delays in the implementation of ISPA projects. The Commission services -especially the EC Delegation in Zagreb - had to intervene frequently, not only to check that procedures were correctly applied but also to rectify errors, to liaise with dissatisfied bidders, and to explain to the implementing agency how the procedures concerned should be implemented. Regularly, the quality of the tender documents needed to be improved resulting in the very late announcement or completion of tenders. The cumulative effect of these interventions has been additional delays to the implementation process.
The ex-ante approval by the Commission which governs the tendering and contracting of ISPA projects is therefore entirely justified until the conditions exist for EDIS to be granted (see above). Under the ex-ante system of approval and in line with the DIS decision for the conferral of management, only the CFCA plays the role of the contracting authority responsible for project implementation, whereas the Commission endorses each step of the procurement process. It follows that, although the Commission is not a contracting partner, it bears shared responsibility for the procedural correctness of the procurement process (without the Commission’s approval, contracts concluded between beneficiaries and contractors are not valid).
16. COMPETITION POLICY
As the ISPA assistance is directed primarily to cover public expenditure - or equivalent - concerning utility projects, this does not generally raise problems of incompatibility with the Community rules on competition. Unless the rules on public procurement are infringed, and provided free access to such infrastructure is guaranteed for all operators meeting the necessary technical and legal conditions, such assistance does not confer any special advantage to specific firms.
17. ENVIRONMENT POLICY
By providing direct assistance to priority projects for the environment, ISPA also contributes to the implementation of environmental policy and to the compliance with EU standards in Croatia. Experience gained through project development and implementation develops administrative capacity and accelerates sector reform in the environment sector. In particular, administrative capacity is being strengthened with regard to environmental investment planning and prioritisation. Steady progress has also been made in the correct implementation of the EIA directive (Council Directive 85/337/EEC of 27th June 1985 on the assessment of the effects of certain public and private projects on the environment), particularly the aspects related to public consultation. It is hoped that ISPA will in these ways contribute towards progress in environmental protection in Croatia.
It is important to emphasise that, as far as Croatia is concerned, the introduction of IPA, with its greater number of bodies and a stream of additional projects, the provision of sufficient financial and human resources for implementation (including monitoring, inspection, the provision of permits and reporting) needs to be ensured.
18. TRANSPORT POLICY
The transport networks in Croatia, agreed in accordance with TINA (Transport Infrastructure Needs Assessment) and REBIS (Regional Balkans Infrastructure Study) were constructed around the framework of pan-European corridors. Several of them run across the territory of Croatia including Corridors VII (the Danube river), X (Salzburg-Ljubljana-Zagreb-Beograd-Nis-Skopje-Veles-Thessaloniki, including branch Xa) as well as Corridor V, which has two branches in Croatia (Vb - Budapest, Zagreb Rijeka, and Vc - Budapest, Sarajevo, Ploče). These networks were used as the planning basis for the national transport strategy for ISPA purposes. As a consequence the single ISPA transport project forms part of the TINA and REBIS networks, i.e. it concerns the construction or rehabilitation of a section, nodal point or access relating to the networks. The TEN-T networks for Croatia are based on SEETO (South East Europe Transport Observatory) recommendations.
Co-ordination among pre-accession instruments
As required by the Coordination Regulation[2], the Commission ensures close co-ordination among the three pre-accession instruments, PHARE, SAPARD and ISPA. In line with the provisions of this Regulation, the PHARE Management Committee plays a special role in general co-ordination of the three pre-accession instruments.
Co-ordination with the (PHARE) Joint Monitoring Committee
The Joint Monitoring Committee is responsible for co-ordinating the monitoring of each pre-accession instrument and for assessing the overall progress of EU–funded assistance in the beneficiary countries. The Committee issues recommendations to the ISPA Committee or to the Commission when relevant.
Co-ordination with EC Delegations
Periodic meetings were organised by the Commission services (DGs Enlargement, External Relations and Regional Policy) with the experts in the Delegations responsible for PHARE and ISPA to discuss programming and implementation issues, in particular those related to tendering and contracting.
Co-ordination with the IPA instrument
In order to ensure the efficient coordination of activities and the prevention of duplication the two ISPA Monitoring Committees held in Croatia in 2008 were organised alongside the IPA Sectoral Monitoring Committees for the Regional Development component. In addition it should be noted that 2 of the technical assistance measures being funded through ISPA relate to the preparation of project pipelines for implementation using IPA co-finance. In this way it is hoped that there will be a smooth transition from the ISPA to the IPA instruments and the uninterrupted implementation of measures in the respective sectors.
19. PUBLICITY ACTIONS
One publicity action took place in 2008 with regard to the ISPA projects. A ceremony was held at the Deletovci railway station in Eastern Croatia marking the commencement of construction works on the Vinkovci to Tovarnik to State Border Railway Rehabilitation project, being the first ISPA project to start in Croatia. The Croatian Ministers for Finance and Transport and the Head of the EC Delegation in Croatia addressed the assembled guests and media representatives. A presentation of the project was also made by the works Supervising Engineer. The event was highly successful and was widely covered in the Croatian media.
[1] No projects have been approved since 2006 due to the ending in that year of the ISPA programme.
[2] Council Regulation (EC) N° 1266/1999 of 21 June 1999 on co-ordinating aid to the applicant countries in the framework of the pre-accession strategy.