Annexes to SEC(2011)1352 - Accompanying the annual report on the Cohesion Fund (2010) - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | SEC(2011)1352 - Accompanying the annual report on the Cohesion Fund (2010). |
|---|---|
| document | SEC(2011)1352  |
| date | November 14, 2011 |
As regards payments (intermediate and final balance), a total of 128 requests for payments have been implemented for an amount equivalent to EUR 609.1 million. Compared to the year 2009, this represents a decrease in terms of payment claims (162 in 2009) and a decrease in terms of amounts paid (EUR 712 million in 2009).
3.2.1. Environment
Regarding changes in the conditions for granting aid, in 2010 a total of 30 amending decisions were approved, all of which were within the environmental sector. In general, the changes affect the date of completion of works, often accompanied by - usually minor - changes to the physical subject of the projects. The changes have had no impact on either the total eligible costs of projects or Community assistance.
Also, in terms of changes, there was a significant reduction compared to 2009 when 71 amending decisions were approved. This is probably due to the unusual high number of modification in 2009.
3.2.2. Transport
In 2010, the Commission services paid particular attention to the implementation of high speed trains projects. In particular in September 2010 two new lines started operating: Madrid-Albacete and Madrid-Valencia (adding 438 km to the global network). The trip between Madrid and Valencia takes now only 1 hour and a half (for 391 km) what can be considered a very good result of the cohesion policy in Spain. The total EU co-financing of this infrastructure was EUR 1,949 million. For the programming period 2000-2006 the total EU aid was EUR 747.3 million (EUR 574.6 million from the Cohesion Fund). The total cost of the infrastructure was EUR 12,410 million.
3.3. Portugal
3.3.1. Environment
The projects under implementation help to promote, develop and complete the basic environment infrastructure as well as to ensure the conditions for sustainable development, environmental protection and management of natural resources. These projects relate to the priority sectors of "Water Supply", "Sewerage and Wastewater Treatment" and "Urban Waste Management", in line with the reference framework.
During 2010, 12 amending decisions were adopted to make general adjustments to the final specifications of projects, mostly in order to include new additional elements and/or to revise others, and to extend the final date of eligibility.
In 2010, 4 environmental projects were closed: "Resíduos Cova da Beira", "Sistema multimunicipal de Valorizaçao eTratam. De RSU do Norte Alentejano", "Residuos Solidos Acçoes Vomplementaires para o Ano 2001-EGF" and "Sistema Multimunicipal de Abastecimento de Agua e de Saneamento do Vale do Ave-Estudos/Projectos/Assessorias".
As at December 2010, 16 environmental projects were already in the process of closure. From a financial point of view the most significant projects are "Tratamento de Resíduos da Madeira" (with a total Fund contribution of EUR 72 million), "Abastecimento e Saneamento de Águas de Trás-os Montes e Alto Douro – Fase 1" (EUR 52 million), "Abastecimento de Água e Saneamento de Trás-os-Montes e Alto Douro – 3ª. Fase" (EUR 50 millions), "Multisectorial Raia, Zêzere, Nabão- 1a fase" (EUR 45 millions), and "Abastecimento e Saneamento de Águas de Trás-os Montes e Alto Douro – Fase 2" (EUR 43 million).
The other 37 open projects arrived at the end of eligibility date on 31 December 2010. However, following the Amendment of the Guidelines on the closure of Cohesion Fund and ex-ISPA projects 2000-2006, the national authorities requested the extension of the deadline of 18 projects/group of projects to the end of 2011 and 1 cancellation (Resitejo). This means that 19 projects should enter in the closure procedure soon.
It should be noted that one project in the sector of waste treatment – "Braval" - has not yet received the advance payment.
3.3.2. Transport
The projects being implemented contribute to the development of the Trans‑European Transport Network and enhance multimodal articulation between the various means of transport in place, in line with the objectives of the reference framework.
During the year, 2 amending decisions were adopted for the same general reasons of adjusting the description of the project and extending the final date of eligibility.
In 2010, 2 transport projects were fully closed, "Porto da Praia da Vitória" and "IC3 – Ligação Tomar/IP6" and 1 partially closed due to legal and administrative issues, "Linha do Minho – Nine/Braga.
Six transport projects were at the closure procedure stage in December 2010; from a financial point of view the most relevant ones are "Linha do Algarve – Coina / Pinhal Novo" (with a total Fund contribution of EUR 86 million), and "Porto do Caniçal" (EUR 41 million).
The other 9 projects arrived at the end of the eligibility date on 31 December 2010. The national authorities requested the extension of the deadline to the end of 2011 for one project (Porto do Funchal) and to the end of 2012 for another one (Metro de Lisboa – GIL/Aeroporto). In the same request for modification, the Portuguese authorities asked for the fusion of this project with another project in the same underground line "Metro de Lisboa – Alameda/S. Sebastião".
3.3.3. Technical Assistance
At the end of 2010, 3 technical assistance decisions still remained open. No projects were closed. One amending decision was adopted in 2010 to extend the final date of eligibility to the end of 2011.
3.4. Cyprus
The Cohesion Fund for Cyprus amounts to approximately € 54 million Community contribution. Two projects are co-financed by the Cohesion Fund: one transport project (upgrade of Limassol motorway) and one environmental project (solid waste management covering the regions of Larnaka-Ammochostos).
The payments made by the Commission for 2 projects (including the advances) amount to approximately EUR 40 million (absorption rate 74%). During the year 2010, no payment claim was submitted by the Cypriot authorities.
The final payment request including the final report for the transport project was submitted on 22 June 2010, which is within the 6 months deadline after the final date of implementation. The winding-up declaration was submitted on 6 December 2010. All closure documents are under assessment and it is expected to complete it during the first semester of 2011.
For the environment project, the works have been completed and the project is operational. It is expected to receive the final payment claim within the 6 months deadline after the final date of implementation (at the end June 2011).
3.5. Czech Republic
3.5.1. Environment
The implementation of the Cohesion Fund projects in the environment sector is progressing satisfactorily. Out of 38 projects approved in the 2000-2006 programming period, 14 were closed (4 in 2010), 1 is in the closure procedure, and closure procedures have been initiated for 5 other projects. The majority of the on-going projects have been completed or are in the final stage of implementation. 81% of the committed amounts have already been paid by the Commission.
In 2010, the Commission dealt with 4 requests to amend the Commission decision in the sector of environment. Most of the modifications concerned the extension of the final date of eligibility. By the end of the year, all of the modification requests had been adopted.
3.5.2. Transport
In the transport sector, implementation is well advanced for almost all projects. 86% of the committed amounts have already been paid by the Commission. In 2010, the closure procedure was launched for 1 project. So far, 9 out of 13 approved projects have been closed (4 in 2010). One modification request was received in 2010 in the transport sector concerning the extension of the final date of eligibility.
In addition, there was also 1 mixed project – environment and transport (Floods 2002 relief: Reconstruction of transport and environment infrastructure damaged or destroyed by floods during August 2002) which was closed in 2004.
3.5.3. Technical Assistance
Regarding the technical assistance projects, their implementation is also well advanced - 3 out of 6 approved projects (2 in the field of transport, 2 in the field of environment and 2 general technical assistance) were closed, none of which in 2010. The closure procedure for one of the technical assistance projects in the field of transport has been launched in 2010.
A request for modification concerning the extension of the final date of eligibility of the technical assistance to the managing authority of the Cohesion Fund was submitted and approved in 2010. A request for modification concerning the extension of the final date of eligibility was submitted and approved in 2010 also for one of the technical assistance projects in the field of environment.
3.6. Estonia
3.6.1. Environment
The Commission has issued financial decisions for 21 environmental projects under the Cohesion Fund (4 of them are technical assistance projects). By the end of 2010, activities of all but 2 projects were finished on the ground. For 2 projects, the extension was asked as contractors were unable to fulfil their tasks and new contractors had to be found at the last moment. The residual works are minor compared to the whole project and there is no danger that the projects will not be operational as a result.
Cohesion Fund projects were subject to heavy cost increases in 2006 – 2007. The situation has normalized since 2008 and construction prices have been going down during the economic crises. The changing conditions have required that some projects had to be modified by the Commission and there are pending requests to decrease the physical objectives of certain projects. These proposals for modification are being analyzed in order to ensure the delivery of working projects that continue to fulfil the initial objectives and to avoid increasing Community contribution except in cases that are justified by unforeseeable increase in initial estimated inflation.
In environment, Cohesion Fund projects mainly concentrated to water sector. Estonia's larger urban areas – Tartu, Narva, Kohtla-Järve, Pärnu etc. were able to carry out separate projects while smaller settlements were grouped together according to the river or sub-river basin water management plans. In waste management the Cohesion Fund supported closure of one hazardous waste landfill and construction of modern landfill for the Western part of Estonia.
3.6.2. Transport
The Commission has issued financial decisions for 15 transport projects under the Cohesion Fund (5 of which are technical assistance projects). By the end of 2010, all projects were completed on ground. For a project concerning the extension of Muuga harbour, cost savings were encountered and the managing authority proposed to carry out additional works to use these savings for the benefit of the project during 2011.
All Estonian TEN-T roads have been systematically improved with Cohesion Fund resources. At the initial stage, projects comprised mainly improvements to existing roads that were in very bad condition when ISPA initially became available. At later stage, work has concentrated on full renewal of sections and junctions considered to be bottlenecks or black spots in terms of safety. No completely new roads or motorway sections have been built. In addition to roads, Tallinn Airport passenger terminal and surrounding area have been completely renovated and extended, allowing the airport to cope with increased passenger numbers. Also, major seaport has been extended with the assistance of the Cohesion Fund.
Technical assistance has helped preparing transport infrastructure projects for implementation in the new programming period. This is demonstrated by good progress in transport sector investments from 2007 – 2013 period resources.
3.7. Hungary
3.7.1. Environment
In the environment sector there are 31 Cohesion Fund/ex-ISPA projects, including 6 technical assistance projects (5 of which are closed) and 25 investment projects (2 are closed) of which 10 are waste water, 13 are solid waste, 1 drinking water and 1 recultivation project. The overall payment/commitment rate is 65% for investment projects and 87% for technical assistance projects. The contracting rate is mainly above 90% and in several cases it is 100%.
In 2010, the Commission adopted 3 amending decisions, 2 of which concerned the extension of the final date of eligibility until 31 December 2010 and 2012 respectively and another relating to the inclusion of new project elements. An additional 8 modifications are on-going. These are mainly related to cost savings and extension of the project eligibility date until 31 December 2011. The requested extension of the final date of eligibility to 31 December 2011 for 2 projects – namely North East Pest and North Balaton waste projects - was not eligible for the extension as these projects were first adopted in 2002 and 2003.
One environment project was closed in 2010. There are 4 pending project closures.
3.7.2. Transport
There are 16 Cohesion Fund/ex-ISPA projects in the transport sector including 7 technical assistance projects (4 of them are closed) and 9 investment projects – 1 for air transport (closed), 3 for road transport and 5 for rail. All transport projects reached the 80% payment/commitment rate. There are 3 pending project closures.
In 2010, the Commission adopted 3 amending decisions, mainly concerning the extension of the final date of eligibility until 31 December 2010 and an inclusion of new project elements. An additional modification is pending related to cost increase and extension of the final date of eligibility until 30 June 2012.
3.8. Latvia
3.8.1. Environment
The Commission has issued 26 Cohesion Fund decisions for environmental projects (including 4 technical assistance projects). In total, out of 26 projects by the end of 2010, 9 projects had been closed, 8 closure files and 1 cancellation request were pending with the Commission (7 projects were closed in 2010), and 8 projects were still ongoing.
For 5 of the pending closure files, financial corrections of EUR 4.45 millions were proposed as a result of the wrongful award of supplementary contracts. On 1 July 2010, a hearing was held for 4 projects, but no agreement was reached. Therefore a second stage hearing will be organized in 2011. Effort is put so that all the 5 remaining cases are closed in 2011.
In 2010, the Commission approved 5 modifying decisions mainly concerning extension of the final date of eligibility to 31 December 2010, increase of the ceiling of cumulative payments to the project to 90% and some minor adjustments of the physical scope.
3.8.2. Transport
The Commission has issued 18 Cohesion Fund decisions for transport projects (including 4 technical assistance projects). In total, by the end of 2010, 9 projects were closed (2 were closed in 2010), 1 closure file was pending with the Commission, and 8 projects were ongoing.
In 2010, the Commission approved 3 modifying decisions mainly concerning extension of the final date of eligibility to 31 December 2010 and some minor adjustments of the physical scope.
3.9. Lithuania
3.9.1. Environment
29 environmental projects were adopted under the Cohesion Fund (and ex‑ISPA) for the period 2000-2006, of which 16 relate to the waste water sector, 11 relate to the solid waste sector, and 2 are for technical assistance.
Prior to 2010 one waste water project was closed and another one has been closed in 2010. Currently 7 other projects are under treatment for closure with the Commission.
3 amending decisions were adopted in 2010 and 13 other modification requests were still under treatment at the end of 2010, of which 1 was completed at the beginning of 2011. The modifications mainly concern reduction of scope of the project, adjustment of physical monitoring indicators, extension of the final date of eligibility to 31 December 2011 and increase, up to 90%, of the ceiling for advance and interim payments. Out of 13 requests, 9 included extension of the final date of eligibility and 10 the reduction in scope.
Two specific problems were identified in the environment sector:
1) A majority of projects in water and waste water sector showed only partial achievement of project objectives related to the connection rate of the new consumers to the central water supply and waste water collection networks.
2) A number of projects were affected by cost overruns due to unforeseen inflation, this has moved the Member State to request for a reduction of scope.
3.9.2. Transport
21 transport projects were adopted under the Cohesion Fund (and ex‑ISPA) for the 2000-2006 period; 11 of these projects refer to the road sector, 6 refer to the railway sector, and 4 are for technical assistance.
Prior to 2010, 9 road projects and 2 technical assistance projects were closed. In 2010, the Commission services initiated closure procedures for 3 other projects which are currently under treatment.
4 amending decisions were adopted in 2010 and 2 more requests for amendment were under treatment end 2010. These request for modification mainly include, adjustments of the physical monitoring indicators, inclusion of new components, extension of the final date of eligibility and increase, up to 90%, of the ceiling for advance and interim payments.
3.9.3. Technical Assistance
In addition to the sectoral assistance, co-financing has been granted to the project aimed at strengthening the administrative capacity of Cohesion Fund management in Lithuania. Project activities are directly related to the monitoring of the Cohesion Fund projects, verification of the closure documents and ex-ante evaluation of all Cohesion Fund projects of the 2000-2006 programming period.
3.10. Malta
3.10.1. Environment
The project "Upgrading of Sant' Antnin waste treatment facilities" covers the construction of a mechanical treatment plant for the pre-treatment of household waste, a material recycling facility, an anaerobic digestion plant for the treatment of biodegradable waste, as well as an installation of a waste water treatment facility. The main outcome is the reduction of the negative environmental impact of the waste cycle, and notably the reduction of the amount of landfilled waste, which is of utmost importance for the Malta main island due to its very high population density (1,500 inhabitant / km²).
The request for the second modification of the Commission decision regarding the extension of the final date of eligibility until 31 December 2011 was received by the Commission on 8 October 2010. The modification request, motivated by the significant economic and social challenges faced by Malta in the light of the global financial crisis and their impact on the timely completion of the project, was accepted by the Commission and an amending Commission Decision was adopted on 11 February 2011.
The project is progressing well, the Commission's payment/commitment ratio of the project reached the ceiling of 80%; the actual realised payments/total eligible cost ratio amounts to 83.51%. The material recycling facility has been completed; the digestion plant and mechanical treatment plant are completed by 85% and 97% respectively.
3.10.2. Transport
The project "Restoration and upgrading of sections of TEN-T" consists of the upgrading of three lots of the TEN-T network in Malta and Gozo (St. Paul's Bay by-pass, Civil Aviation Avenue in Luqa and Mġarr Road in Għajnsielem in Gozo) with the objective to reduce travel time, accident rates, transport costs and facilitate competitiveness in the transportation of goods.
The Commission decision approving this project was modified on 17 October 2008, covering transfer of funds between the project sections and extending the deadline for the eligibility of expenditure until 31 March 2010. A request for the second modification of the project was submitted to the Commission in July 2009 to make use of savings encountered in the project (519,496.91 €) for the upgrading of an additional 350 m stretch of the Mġarr Road. The modifying decision was adopted by the Commission on 5 February 2010. A Commission decision correcting an administrative error in the second modifying decision was adopted on 23 March 2010. The deadline for the eligibility of expenditure has been extended until 31 December 2010.
The project (including the additional works on the Mġarr Road) was physically and financially completed in the course of 2010. The documents required for the closure of the project are to be submitted to the Commission by the end of June 2011.
3.10.3. Technical Assistance
The technical assistance project aims at preparing the environmental projects pipeline for 2007-2013 Cohesion Fund projects (mechanical biological waste treatment plants and storm water master plan).
The Commission decision approving this project was modified on 30 July 2008 in order to take into account delays in the identification of potential sites for the waste treatment plant and the need to comply with obligations arising from Directive 2001/42/EC. Consequently, the environmental impact assessment component was taken out of the first sub-project and strategic environmental assessment included in the second sub-project. In addition, the deadline for the eligibility of expenditure has been extended until 31 December 2010.
The project was physically and financially completed in the course of 2010. The documents required for the closure of the project are to be submitted to the Commission by the end of June 2011.
3.11. Poland
In 2010, the Commission adopted 43 amending decisions granting assistance from the Cohesion Fund – 36 in the environment sector and 7 in the transport sector. These mostly concerned changes in the physical scope, the end date of the project and raising the threshold for interim payments from 80% to 90%. In addition, the Commission adopted 2 corrigenda. Out of the total 130 Cohesion Fund projects, only 6 projects were closed before 2010.
27 projects were under closure as at the end of 2010 of which 12 projects were submitted for closure before 2010 and were delayed due to a contradictory procedure resulting from two public procurement audits conducted by the Commission (Directorate-General for Regional Policy). Two hearings took place in April and June 2010, which led to an agreement between Poland and the Commission to apply a 2% net flat-rate correction for 5 systemic public procurement findings to all 124 unclosed projects. The complementary information to winding-up declarations reflecting the outcome of the hearing was submitted to the Commission only in the fourth quarter of 2010. Consequently the closure of these files is expected to be finalised in 2011.
As a large majority of the remaining 97 unclosed projects finalised works by December 2010, the main bulk of closures will be due on 30 June 2011. However, the Commission registered (mostly in the fourth quarter of 2010) 29 requests for extension of the final date of eligibility beyond 2010 due to force majeure (floods in spring 2010), implementation difficulties and/or impact of the financial and economic crisis. The analysis of these requests would take place in the first quarter of 2011.
The implementation of projects has been strongly influenced by large cost overruns amounting to one third of the entire Cohesion Fund allocation for Poland. The national authorities secured the additional financing for all projects affected by cost-overruns by national funds and loans, with the exception of 5 projects in the environment sector and 1 transport project. Poland has requested a reduction of the physical scope in all 6 projects. The decision on these modifications was not taken in 2010 due to pending replies to the requested additional information by the Commission from the national authorities. On the other hand, there were 29 projects which achieved cost-savings totalling EUR 44 million of the Cohesion Fund grant.
At the end of 2010, there was no project left with an outstanding issue relating to the Environmental Impact Assessment (EIA).
In 2010, the Commission authorised payments amounting to EUR 944.2 million.
3.11.1. Environment
The level of contracting corresponds to 123% of the originally estimated costs in environmental projects, or 98% of the total estimated costs when cost overruns are taken into account. The physical and financial progress on the ground, aggregated for the sector, was recorded at 89% (both physical and financial). 13 closures were ongoing for an investment project in the environment sector.
3.11.2. Transport
The level of contracting was over 129% of the originally estimated cost for transport projects, or 97% if the cost overruns are taken into account. The physical and financial progress aggregated for the sector was about 85% (both physical and financial). The closure procedure for 11 investment projects was ongoing in the transport sector.
3.11.3. Technical assistance
3 closures were ongoing for technical assistance projects.
3.12. Slovakia
3.12.1. Environment
As a result of common efforts and measures taken in the previous period (action plans and strengthened monitoring) all Cohesion Fund environment projects with an exemption of the "Prešov - Drinking water and sewerage in the basin of Torysa river" project were physically completed in 2010. Prešov project, due to a damaged infrastructure as a result of extreme flooding in June 2010, asked for extension of the final date of eligibility until 2011.
Financial closure was completed in 2010 only for 1 technical assistance project – Technical assistance for the preparation of the Cohesion Fund projects in the water sector. Another project - Komárno - was interrupted due to additional verifications of the public procurement procedure. For 4 projects under closure (Poprad, Zvolen, Liptov, South East Zemplín) due to financial corrections proposed by the Commission (additional works and services not fulfilling public procurement requirements), a hearing was organised in December 2010. For other 5 projects (Žilina, Šaľa, Pieštany, Košice, Humenné) closure documents were received in June 2010 and are being examined by the Commission. Modifying decisions were prepared for Veľky Krtíš due to adjustment of physical indicators and for Trnava project due to adjustment of the text in the granting decision.
3.12.2. Transport
All Cohesion Fund transport projects were physically completed in 2010. Administrative closure of two transport projects (Construction of D61 Motorway Section Vienna Road-Riverport Bridge in Bratislava and Modernisation of the Rail Track Šenkvice-Cífer and Stations Rača-Trnava) was also successfully completed with the reimbursement of their final payment claims.
3.13. Slovenia
The Commission approved 28 Cohesion Fund projects in Slovenia for the period 2000-2006, of which 16 relate to the environment sector, 8 relate to transport sector and 4 are for technical assistance. Total commitment was EUR 254.3 million was distributed to environment (EUR 129.5 million), transport (EUR 122.1 million) and technical assistance (EUR 2.7 million). In terms of commitments, the desirable 50/50 balance between the two main sectors of intervention, namely environment and transport, was achieved for the period 2000-2006.
During 2010, about EUR 12.3 million were paid out from the Cohesion Fund in terms of intermediate and final payments. Three projects were closed during the year. This means that the total payments for the Cohesion Fund have reached 85% of the total decided funding for 2000-2006.
A close monitoring of implementation has been put in place both by the Commission services and the national authorities so as to ensure a timely closure of projects. There is an overall delay in implementation which is mainly attributable to delays in public procurement and related appeals by bidders as well as to the negative impacts of the crisis (i.e. shortage of national/municipal co-financing). In addition, VAT has become a non-eligible expenditure due to a change of the national legislation (VAT became recoverable for municipalities).
3.13.1. Environment
In line with the Strategic Reference Framework for the Cohesion Fund, the main aim of assistance from the Cohesion Fund and ex-ISPA during the period 2000-2006 was to help municipalities and regions to improve drinking water supplies, sewerage networks and wastewater treatment (a total of 12 projects in the water sector) and waste management (4 projects in total).
In 2010, the last contract for works was successfully concluded bringing to an end a period of several years which had been characterized by delays in public procurement. As many projects are set up as design-build, the actual construction lagged several months behind the date of the contract signature. All projects made significant progress, both physically and financially. Construction was completed on a considerable number of projects and the trial operation phase for infrastructure began.
The crisis led to a significant drop in municipal revenues, reduced transfers from the state budget, worsened access to bank loans and yet an increasing demand for municipal subsidies which negatively influenced the municipality's ability to respect the original work schedules for infrastructure projects. In addition, VAT has become a non-eligible expenditure due to a change of the national legislation. In this context, Directorate-General for Regional Policy received at the end of 2010 five requests for an extension of the final dates of completion and/or payment until 31 December 2011. These requests have been screened at the end of 2010 and shall be treated in early 2011.
2 completed projects in the water sector and 1 technical assistance project were closed. 5 other environmental projects entered the closure stage. In compliance with the relevant procedures, closure of these projects and processing of final payments is due in 2011.
3.13.2. Transport
In 2003 the national authorities defined a National Cohesion Strategy for the transport sector which identified the objectives of its transport strategies and the projects to be financed through the Cohesion Fund. It involves the country establishing itself as a maritime transit country within the European Union and marketing its geopolitical position at the crossroads of two important European corridors (Corridors V and X) along the existing southern border of the EU. To this end, bottlenecks on corridors must first be removed, which involves the completion of the motorway network, upgrading, modernisation and completion of the rail network and increasing the range of logistical services.
The Cohesion Fund co-finances 6 railway projects and 2 motorway projects in the transport sector. Following reports of delays due to public procurement in previous years, all railway projects in 2010 were fully contracted and made satisfactory progress in physical and financial terms (all projects reached the 80% ceiling). 5 transport projects entered the closure stage. In compliance with the relevant procedures, closure of these projects and processing of final payments is due in 2011.
3.14. Bulgaria
3.14.1. Environment
Despite progress in 2010 the implementation of the 25 Cohesion Fund/ex-ISPA environmental projects (19 in the water sector, 2 in the waste sector, 1 in the energy sector and 3 technical assistance) was significantly below target. Net financial implementation (without advance payments) is approximately 46% after 10 years of implementation. So far only 1 project (technical assistance) has been completed.
Further to the Communication concerning Cohesion Fund/ex-ISPA projects closure, the national authorities requested for one year extension of the final of eligibility in June 2010 also for projects first approved by the Commission in December 2003 and co-signed by the Bulgarian authorities in 2004.
Bulgaria has submitted requests for the extension of the final date of eligibility in relation to 12 projects in the environment sector. Payments for 10 projects were interrupted in 2010 due to the extensive use of direct negotiation procedure following the cancellation of open tenders. Financial corrections were proposed for 8 of these projects. At this stage the responsible managing authority has accepted 6 financial corrections, while the other 2 may be the subject of a hearing procedure. In total, 6 of the proposed financial corrections have been implemented so far.
3.14.2. Transport
In 2010 Bulgaria made significant efforts to make up its considerable backlog in the implementation of pre-accession funds, reaching 50% net financial implementation of the total Cohesion Fund allocation after 10 years of implementation. Despite these efforts the end of year achievement was insufficient and performance was marked by a considerable divergence between the projects. Within the transport sector a budget of some 90 million € remained unabsorbed and will be de-committed at a later stage.
In 2010 the closure of 1 project was concluded, which increases to 2 the total number of closed projects out of the 11 projects decided in the 2000-2006 programming period. Following the modification of the closure guidelines, Bulgaria has submitted requests for the extension of the final date of eligibility in relation to 4 projects in the transport sector.
3.15. Romania
In total 63 Cohesion Fund projects were approved by the Commission in the 2000-2006 programming period for Romania: 36 for the environmental protection-related measures in the water resources management and waste management sectors, 12 projects in the transport sector covering mainly rail and roads, and 15 technical assistance projects linked both with the environment and transport sectors.
Considering the 2000-2006 programming period, the total amount of grant decisions for Romania is almost EUR 2,036 million. These commitments are shared evenly between the environment sector (50.4%) and the transport sector (49.6%), including technical assistance related to these sectors.
The situation in terms of implementation progress for 2010 is diverse between the sectors and even the individual projects themselves. For about half of the projects, mainly those approved before 2004, measurable progress was achieved during 2010 and several have works completed by the end of 2010. The possibility to extend the final date of eligibility beyond 2010, granted to the other half of all projects, provided a possibility to complete those projects in 2011 and increase the absorption of Cohesion Fund. Altogether 4 projects have been closed in year 2010, 1 infrastructure in environment and 3 technical assistance projects.
For 7 projects the Commission adopted the corresponding amending decisions in 2010, mostly to extend the final dates of their eligibility and initiated the modification procedures for the extension of the final date of eligibility beyond 2010 for 24 projects (17 in environment and 7 in transport).
Total payments from the European Commission to Romania in 2010 fell by 6% compared to 2009 (from EUR 300.7 million to EUR 209.4 million), bringing the total accumulated payments to EUR 1,550.27 million. Payments per sector were: EUR 109.61 million in the environment sector, EUR 97.81 million in transport and EUR 1.9 million for technical assistance.
3.15.1. Environment
Payments from the Commission to the environment-related infrastructure projects in 2010 amounted to EUR 109.61 million with additional projects reaching in 2010 payment levels that were more than 80% or 90% of their existing EU funding commitment, signifying that works are either well under way or have actually been completed. There are only 3 projects with total paid per total grant lower than 70%.
In the environment sector, most of the projects behind schedule were those approved in the 2004-2006 period. For projects approved before 2004, project implementation is more advanced, but overall not sufficient to exclude the risk of loss of EU funds. In this second group, 5 projects were not fully completed on the ground in 2010 and will in principle be completed in 2011.
3.15.2. Transport
Payments from the Commission to transport projects in 2010 amounted to EUR 97.81 million. There are only 2 projects where the Commission's payment levels are lower than 70% of the existing EU funding commitment per project.
One particular transport project (Deva-Orastie by-pass) achieved little progress in 2010, reflected by payments that are 10% of the committed grant, partly because of a re-launched tendering procedure following the cancellation of the initial contract.
Delays in the transport sector also affected technical assistance projects, especially the ones dealing with the railway project preparation and motorways, therefore delaying also the launch of major infrastructure projects within the Operational Programme for Transport (2007-2013).
In addition, in 2010 the Commission and the Member State decided to cancel 1 infrastructure project in the transport sector due to the impossibility to complete the project within the existing final date of eligibility of the 2000-2006 programming period.
3.15.3. Technical assistance
There are 6 technical assistance projects linked to the environment sector which focus mainly on project preparation and institutional capacity. 4 of these have been completed, one of the two ongoing projects reached a payment level of 80% and the other is already in the closure procedure. There are 8 technical assistance projects in the transport sector focusing mainly on project preparation. Two of them have been completed and one is already closed from the procedural point of view.
There is one technical assistance project for supporting the meetings of the monitoring committee.
4. Monitoring, inspections, financial corrections and irregularities
4.1. Monitoring: committees and missions
4.1.1. Greece
No monitoring committee meeting took place in 2010 being the end of the programming period however a number of technical meetings were held with the managing authorities and letters were sent as warnings for the risks that could encounter by the closure. In particular in 2010, Directorate-General for Regional Policy, together with Directorate-General for Environment and in close collaboration with the Greek authorities made significant efforts to ensure proper implementation and respect of the relevant Directives.
4.1.2. Spain
Monitoring Committees
The meeting of Monitoring Committee, which reviews projects co-financed by the Cohesion Fund, was held in Madrid on 29 April 2010.
To prepare the meeting, national authorities sent the reports reflecting the state of implementation as at 31 December 2009 for all decisions (covering a project or a group of projects) that were being implemented on that date. From among these, the managing authority - in partnership with the Commission - selected 20 projects which, by virtue of their particular situation, were subject to monitoring and a specific analysis during the sessions of Monitoring Committee.
In the course of the meeting, the Commission services sent all participants the following information:
The need to submit all closure documents (final payment claim, final report, audit declaration) within the established deadlines was recalled. In fact, current practices reveal significant delays in the submission of certain documents, and of audit declarations in particular.
The Spanish authorities were informed of the Amendment of the Guidelines on the closure of Cohesion Fund and ex-ISPA projects 2000-2006. In particular, the extension of the final date of eligibility until 31 December 2011 and 31 December 2012 may be granted under certain conditions for projects which were first approved by the Commission's decision after 1 January 2004. The Spanish authorities welcomed this Amendment as this would allow them to fulfil the objectives of certain projects in due time.
Monitoring missions
Three technical meetings took place in Madrid on 21 April, 21 September and 12 November 2010 respectively. Represented at the meetings were the managing authority, the certification authority and the Directorate-General for Regional Policy. Their aim was to address the problems faced during the day-to-day management of projects and the measures required to overcome them. In addition, three monitoring missions were conducted in 2010, during which projects were visited.
The first mission was on 10 February for a follow-up project of the HST Madrid-Valencia, in particular Motilla del Palancar-Valencia. In this mission Directorate-General for Regional Policy joined TEN-T European Agency in order to ensure that Commission service response was coordinated and systematic across the different funding streams. The meeting was held in order to determine what would be the proposed solution to the environmental deficiencies found.
A second mission was the visit to several environmental projects on 21 September in Catalonia, in particular projects "Planta de selección y biotratamiento de residuos municipales de Sant Adrià del Besòs" and "Construccion y Adecuacion de las infraestructuras de Tratamiento de Residuos Municipales de Cataluña"(projects 17 and 18). The objective was to clarify issues concerning the closure of the projects and findings mentioned by the European Court of Auditors.
The third mission was the visit to the high-speed train project Madrid- Valencia on 18 December. The Commission officials took the high-speed train, inspecting 17 projects in a return trip (Cohesion Fund and ERDF). The Spanish authorities are pride of the high-speed rail network in Spain and the contribution of the cohesion policy has been significant and recognised.
4.1.3. Portugal
Monitoring Committees
According to the internal regulation of the Portuguese Monitoring Committee relating to the Cohesion Fund infrastructures for the 2000-2006 period, these meetings are held twice a year.
Exceptionally, in 2010 only one meeting was held which took place on 1 June 2010 in Lisbon. The second Monitoring Committee was postponed to the beginning of 2011 and was replaced by a technical meeting held in Lisbon on 15 November 2010.
The aim of the Monitoring Committee meeting was to follow up the implementation of the projects, and to resolve problems related to deadlines, closures and audits, as well as to examine the prospects for completing their implementation in the short time that remained available. At the end of 2010, of the 49 projects that had not yet got as far as the closure procedure, 26 investments had a closing date of 31 December 2010, 2 have a closure date of 31 December 2011 and 21 requested extension of closure date to 31 December 2011 or 31 December 2012. Out of 49 projects, 40 investments had received Cohesion Fund payments above 50% of the total EU contribution.
The meeting of the Monitoring Committee was preceded by technical meeting between the Cohesion Fund national authorities and the Commission, in order to discuss the main outstanding issues, such as closure of projects, amending decisions and procedures that were interrupted for various reasons.
Monitoring missions
In the course of 2010, the Commission services visited two projects ("Metro de Lisboe: GIL-Aeroporto"and "Infraestruturas de tratamento de RSU – Tratolixo) in order to take note of their progress and, in certain cases, to discuss with the national authorities any technical or legal problems which had arisen.
4.1.4. Cyprus
No monitoring committee took place in 2010 while technical meetings review the progress of the above mentioned projects.
4.1.5. Czech Republic
In general, meetings of the Cohesion Fund Monitoring Committee are held twice a year. In 2010, the first meeting of the Monitoring Committee took place on 22 June 2010 and the second one was held on 14 December 2010. Discussions in the Monitoring Committees are organised on a project-by-project basis, using the monitoring sheets and allowing substantial time for the national authorities, beneficiary and the Commission to clarify any outstanding issues. Issues of a general nature are discussed in the Core Group meeting with the national authorities.
No monitoring missions for ongoing projects were carried out in 2010.
4.1.6. Estonia
There were no major changes in the management and control system. A contract of confidence was signed on 12 February 2008 between the Commission and the National Audit Authority. Final Monitoring Committee meeting was held in 2010, discussing the final modification proposals and drawing conclusions for new period.
The Commission has mainly highlighted the need to learn from the past and to try to improve and build on existing experience for the 2007-2013 programming period.
4.1.7. Hungary
Two Monitoring Committee meetings were held, in April and October 2010. Horizontal issues and progress in individual projects were discussed. Several projects have to be extended beyond end 2010. The Budapest wastewater projects have been extended until 2012. Furthermore, a railway project (Budapest – Lokoshaza) is being extended to June 2012. On 27 October 2010, a Commission representative was taken onboard a rail trip from Budapest to Bekescaba to inspect the developments on the corridor 22, financed by three different projects under the CF.
4.1.8. Latvia
In 2010, two "electronic" Cohesion Fund Monitoring Committees and one project visit took place. Main problems concerning implementation and closure of the projects were discussed.
4.1.9. Lithuania
Two Monitoring Committee meetings took place in Lithuania, on 14-15 May and 24-25 November 2010. The committee examined the progress reports submitted by the national authorities and discussed the implementation and closure issues of all ex-ISPA and Cohesion Fund projects.
Five technical meetings of the Cohesion Fund took place during 2010:
§ March 2010 (Mission to Vilnius, Lithuania) – Meeting with the managing authority to discuss the proposed amendment of the project "Technical assistance for the support to the project preparation activities for ISPA projects for environment sector";
§ April 2010 (teleconference with national authorities) - Meeting with the managing authority, Ministry of Environment and national experts on the issues related to the low connection rates of the new users to the central water and waste water networks;
§ June 2010 (technical meeting in Brussels, Belgium) - Meeting with the managing authority, Ministry of Environment and Directorate-General for Regional Policy audit on the issues related to the low connection rates of the new users to the central water and waste water networks. Non-paper with situation analysis and the action plan was presented by the Member State;
§ June-July 2010 (entire country) – Monitoring visit to 3 waste projects "Hazardous Waste", "Regional Waste Management System Development for Taurage region" and "Siauliai Regional Waste Management System Development" and 3 water projects "Water Supply and Waste water Collection Network Development in Klaipeda", "Nemunas Lowland River Basin - 1st Package" and "Neringa waste water treatment plant reconstruction, sewer network extension and potable water network rehabilitation";
§ October 2010 (Mission to Vilnius region, Lithuania) - Monitoring visit to a waste water project "Vilnius: Rehabilitation and extension of water supply and sewage collections systems", "Neris river basin investment programme, 1st stage (Vilnius city and district municipalities)" and waste project "Vilnius: Regional waste management".
4.1.10. Malta
Monitoring Committees
Meetings of the Monitoring Committee for all three Cohesion Fund projects were held on 20 May 2010 and on 17 November 2010. The Commission representatives attended both Monitoring Committee meetings.
Annual progress reports were submitted for all three projects in line with Article F.4 of Annex II to Council Regulation (EC) 1164/1994, as amended.
Monitoring missions
A site visit of the project "Upgrading of Sant' Antnin waste treatment facilities" (CCI No. 2004MT16CPE001) was carried out on 21 May 2010.
4.1.11. Poland
Monitoring Committees
Two meetings of the Cohesion Fund Monitoring Committee were held in 2010 (on 29 June and 8 December). The meetings were preceded by meetings of working groups for the Environment sector (on 19-20 May and 20-21 October) and the Transport sector (on 29 April and 29 October). The meetings were attended by representatives of the managing authority, the paying authority, intermediate bodies, implementing agencies, social and economic partners and, in the case of working groups, also the final beneficiaries of ongoing projects.
The meetings were dedicated to a review of the progress in implementing individual projects. In addition, the following horizontal issues were discussed: payment rate and financial forecasts, cost overruns, environmental impact assessment conditions, closure forecast, modifications to projects in terms of scope and timeline, and delays in implementation. Particular attention was paid to the projects facing delays in the implementation and projects requesting extension of the final date of eligibility beyond 2010 due to force majeure (floods).
Monitoring missions
No monitoring missions specific to the Cohesion Fund were carried out.
4.1.12. Slovakia
Monitoring Committees
Two monitoring committee meetings were held in 2010: in Terchová, Central Slovakia (April) and Bratislava, Western Slovakia (October). The monitoring committees reviewed the state of progress of all current ex-ISPA and Cohesion Fund projects.
In addition, key horizontal issues were discussed at these meetings: closure of projects, quality of final reports, the impact of financial corrections. It was suggested to present in the last monitoring committee in autumn 2011 evaluation of impacts of projects in both sectors, i.e. environment and transport. It was also recommended to organize a press conference on the closure of the Cohesion Fund projects of the programming period 2000-2006 and to disseminate positive results and achievements in both sectors.
4.1.13. Slovenia
Monitoring Committees
Two Cohesion Fund Monitoring Committee meetings were held in Slovenia in 2010.
The meetings took place on 16 April and 12 November 2010 and focused on the ongoing implementation of projects, delays in public procurement, changes in the national VAT legislation and their impact on the Cohesion Fund projects, cost overruns, project closure and publicity. The meetings included a detailed review of all ongoing environment and transport projects, as well as a discussion of financial data including payments and payment forecasts. The Commission highlighted in particular the need to further accelerate the implementation of those projects, which are experiencing substantial delays.
Monitoring missions
One project visit was carried out as part of the April Monitoring Committee meeting in 2010. The three projects visited (one for waste water and two for a railway) showed satisfactory progress towards completion or were already completed.
4.1.14. Bulgaria
In 2010 one Monitoring Committee took place in June and a number of projects site-visits were made. Due to the workload related to the final date of eligibility on 31 December 2010 the 2nd meeting took place in January 2011.
The meetings of the Committee were divided into two parts: project and sector based technical discussions, followed by the official meeting to address horizontal issues and draw conclusions from the technical discussions.
In January 2010 Directorate-General for Regional Policy organised a seminar for the closure of the ex-ISPA projects where all the national competent authorities and relevant beneficiaries were invited.
In order to enhance co-ordination and co-operation between Bulgaria and Romania, a Monitoring Sub-Committee for the construction of the Danube Bridge was set up at the initiative of the European Commission, involving all relevant parties with a stake in the construction of the Danube Bridge. One meeting was held in 2010 in Vidin- Calafat.
4.1.15. Romania
Monitoring Committees
During the year 2010 two monitoring committee meetings took place, both focusing on the two groups of projects, those with unchanged end dates and those that could benefit from the possibility of one year extension. Early preparation for the project closure procedure has been encouraged through addressing certain specific risks linked with closure such as contractual conflicts, payment to contractors and availability of financial resources necessary to complete the projects.
The Committee discussed also project specific issues, and the horizontal aspects of implementation that were currently affecting overall implementation: payment forecasts and contract management, public procurement, projects at risk of non-completion by the current end dates, problems of land acquisition, which were one of the reasons for delays in some of the transport projects, cost overruns and the corrective measures planned by the Romanian authorities to improve overall implementation and absorption of EU funding.
Monitoring missions
Ad-hoc monitoring was carried out for projects presenting higher risk of non-completion for both sectors. Several projects were also visited by the Commission services. The joint Bulgarian-Romanian Danube Bridge had special monitoring arrangements in terms of more frequent reporting and a dedicated monitoring committee joining both the Bulgarian and the Romanian part of the project.
4.2. Audits and financial corrections
4.2.1 On-the-spot audit work by the Directorate-General for Regional Policy
The Directorate-General for Regional Policy ensured a good audit coverage of the Cohesion Fund projects in all Member States concerned up to 2010, thanks to various audit enquiries focused on the specific risks linked to implementation.
Cumulatively, the Directorate-General for Regional Policy has carried out in total 162 system audits and 14 closure audits on the 2000-2006 programming period Cohesion Fund projects. The analysis below provides details on the work carried out up to 2010, grouped in accordance with the historical development of the Fund.
EU-4 Member States (Greece, Ireland, Portugal and Spain)
A significant amount of work has been carried out for EU-4 Member States since 2001 and a high level of audit coverage has been attained (between 18% and 56% of projects in each Member State, and up to 80% of allocations covered). Action plans were imposed to correct weaknesses found (for example verification of a representative sample of expenditure declared from 2000 to 2004 in Portugal) and/or financial corrections were made (for example in Greece as regards the award of public procurement contracts). For these four Member States the assessment on the reliability of the winding-up bodies is positive. In the case of Spain, the Directorate-General for Regional Policy established by the end of 2010 that the many of submitted winding-up declarations contain irregular expenditures not adequately quantified and corrected by the winding-up body, mainly related to irregular public procurement procedures (complementary works, contract modifications). The Directorate-General for Regional Policy takes mitigating actions by assessing each case individually at closure and by organising hearings with the Member State with a view to carrying out all necessary financial corrections at the closure of each project.
EU-10 Member States (first enlargement of the Cohesion Fund Member States: Cyprus, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovakia and Slovenia)
As a result of the substantial amount of audit work carried out by the Directorate-General for Regional Policy, good audit coverage has been attained for most of the 2004 enlargement Member States (between 5% and 41% of projects). The assessment on the reliability of the work of the winding-up body varies for this group of Member States. When problems were detected, the Directorate-General for Regional Policy requested the Member State authorities to implement remedial action plans and to carry out additional retrospective verifications, to strengthen the preparatory work for closure before sending the winding-up declarations, and to apply appropriate financial corrections (for example audit findings in the public procurement area were addressed by application at closure of a net 2% flat rate correction on all Cohesion Fund projects in Poland). The main residual risk factors are: public procurement procedures and doubts about some winding-up bodies' ability to detect such irregularities or to impose financial corrections, and weaknesses in the functioning of the winding-up body. In one case (Hungary), serious issues and a relatively high error rate have been reported for transport projects, resulting in a reservation in the 2010 Annual Activity Report for the Directorate-General for Regional Policy. All the risks identified are mitigated by the thorough verifications by the Directorate-General for Regional Policy when analysing the winding-up declarations at the closure of each project. The Directorate-General for Regional Policy will also continue to monitor these risks through audits of samples of remaining open projects. In four Member States (Cyprus, Estonia, Malta, Slovenia) there are no outstanding audit issues and the Directorate-General for Regional Policy can place a high degree of reliance on the winding-up declarations to close the projects.
EU-2 Member States (second enlargement of the Cohesion Fund Member States: Bulgaria and Romania)
As a result of the significant amount of audit work carried out by the Directorate-General for Regional Policy on the EU-2 a good audit coverage has been attained (47% of projects audited for Bulgaria and 35% for Romania).
As pointed out in the Directorate-General's Annual Activity Report for 2010, public procurement audits and project audits carried out revealed deficiencies in the public procurement area (selection and award criteria, application of deadlines, use of negotiated procedures) and weaknesses in management verifications. This led to financial corrections initiated by the Commission. The financial corrections reported in 2010 for Cohesion Fund in Bulgaria amount to EUR 18.47 million. For Romania, cumulative financial corrections since 2008 have amounted to EUR 11.41 million. The Directorate-General for Regional Policy identified deficiencies in the work of the winding-up body in Bulgaria, made recommendations for improvement, and is monitoring closely the situation. For Romania, an audit mission on the work of the winding-up body carried out in 2009 has been closed with unqualified opinion, providing a good basis for relying on the winding-up declarations received.
Other audit work in 2010
Other audit work undertaken by the Commission services for the Cohesion Fund in 2010 included the examination of the national annual control reports under Article 12 of Regulation (EC) No 1386/2002, the annual summaries, and the review of national system audit reports submitted to the Commission by the Member States. By the end of 2010, the majority of the received reports had been analysed, and replies had been sent to the Member States with observations and, where necessary, requesting additional information in order to be able to extract as much assurance as possible from the results of national audit work.
Annual coordination meetings are held bilaterally between the Commission and national audit authorities to exchange information on the implementation of audit work and to discuss progress on sample checks and follow-up of audit findings. The meetings covering audit work conducted in the year 2009 were held during the first half of 2010. The annual bilateral coordination meetings covering audit work carried out in 2010 were held in spring 2011.
Management and control systems
In the Directorate-General's Annual Activity Report for 2010, for the functioning of the management and control systems (2000-2006), reported audit opinions expressed by the audit authorities may lead to three types of possible opinions: unqualified, qualified and adverse.
An unqualified opinion was given for the Cohesion Fund systems in six Member States (Cyprus, Estonia, Greece, Malta, Portugal and Slovenia). For nine Member States, the opinion was qualified with a moderate impact (Bulgaria – environment and transport sector, Czech Republic, Hungary - environment sector and technical assistance projects, Latvia, Lithuania, Poland, Romania, Slovakia and Spain).
In the 2010 Annual Activity Report of the Directorate-General, for one transport sector project in Bulgaria managed by the National Roads Infrastructure Agency, a qualified opinion with significant impact was given, due to breaches of public procurement rules and other weaknesses identified by the Commission and the European Court of Auditors, resulting in a reservation. As regards the Hungarian transport sector, a reservation and a qualified opinion with significant impact was given due to the high error rate identified by the national audit body, the results of the Commission audit in 2009 detecting several public procurement irregularities, weaknesses identified in the implementation of financial corrections recommended by the winding-up body, and in detection and correction of public procurement related irregularities at national level.
Table 5. Cohesion Fund financial corrections decided or agreed in 2010 by period and by Member State (in EUR)
Member State || Reservation 2009 AAR || Cohesion Fund || TOTAL || Reservation 2010 AAR
1994-1999 || 2000-2006
Bulgaria || YES –Environment sector || || 18 473 452 || 18 473 452 || YES – 1 project
Cyprus || NO || || || || NO
Czech Republic || NO || || 6 814 711 || 6 814 711 || NO
Estonia || NO || || || || NO
Greece || NO || 31 141 || -157 142 || -126 001 || NO
Spain || NO || 115 666 || 21 006 031 || 21 121 697 || NO
Hungary || NO || || || || YES – transport sector
Ireland || NO || || 627 640 || 627 640 || NO
Latvia || NO || || 506 270 || 506 270 || NO
Lithuania || NO || || 30 177 || 30 177 || NO
Malta || NO || || || || NO
Poland || NO || || 111 246 392 || 111 246 392 || NO
Portugal || NO || || 12 925 561 || 12 925 561 || NO
Romania || NO || || 1 728 070 || 1 728 070 || NO
Slovenia || NO || || || || NO
Slovakia || NO || || 1 668 163 || 1 668 163 || NO
TOTAL || || 146 807 || 174 869 325 || 175 016 132 ||
Remark: Includes corrections made by Member States, following agreement under the relevant procedure or as a result of implementation of action plans (which may cover many programmes) and formal Commission decisions.
Closure of 2000-2006 Cohesion Fund projects
For the closure of the 1192 projects of Cohesion Fund 2000-2006, 491 winding-up declarations have been received and out of this 475 (97%) have been assessed by the end of 2010 (in addition to the winding-up declarations that were rejected or sent back to the Member States for corrections) by the Directorate-General for Regional Policy.
Table 6. Result of the review of the winding-up declaration for Cohesion Fund at the end of 2010
Member State || Total number of projects || Received || Acceptance without financial correction || Acceptance with proposed financial corrections || Interruption (missing info/additional audit work to be carried out) || Rejection || Total reviewed || % of winding-up declarations reviewed to received
Bulgaria || 38 || 5 || 4 || 0 || 1 || 0 || 5 || 100%
Cyprus || 2 || 0 || 0 || 0 || 0 || 0 || 0 || 0%
Czech Republic || 58 || 29 || 17 || 7 || 5 || 0 || 29 || 100%
Estonia || 37 || 25 || 19 || 2 || 1 || 0 || 22 || 88%
Spain || 407 || 199 || 44 || 65 || 0 || 90 || 199 || 100%
Greece || 124 || 65 || 64 || 1 || 0 || 0 || 65 || 100%
Hungary || 47 || 14 || 12 || 0 || 2 || 0 || 14 || 100%
Ireland || 10 || 6 || 2 || 1 || 2 || 1 || 6 || 100%
Lithuania || 51 || 21 || 14 || 0 || 7 || 0 || 21 || 100%
Latvia || 46 || 25 || 18 || 0 || 7 || 0 || 25 || 100%
Malta || 3 || 0 || 0 || 0 || 0 || 0 || 0 || 0%
Poland || 130 || 30 || 6 || 8 || 3 || 0 || 17 || 57%
Portugal || 109 || 26 || 13 || 7 || 0 || 6 || 26 || 100%
Romania || 63 || 8 || 1 || 6 || 1 || 0 || 8 || 100%
Slovenia || 28 || 14 || 14 || 0 || 0 || 0 || 14 || 100%
Slovakia || 39 || 24 || 10 || 14 || 0 || 0 || 24 || 100%
Total || 1192 || 491 || 238 || 111 || 29 || 97 || 475 || 97%
4.2.1. Greece
No audits were carried out in Greece on Cohesion Fund projects in 2010 by the Directorate-General for Regional Policy. However, an audit carried out in 2009 was followed-up and closed in 2010. Previous audits have identified some delays in implementation and weaknesses in public procurement procedures in Greece, and as a result a large financial correction relating to public procurement issues (use of "mathematical formula") was adopted in 2008. In addition, as a result of an OLAF investigation of one Greek water supply project during 2008 and 2009, the national authorities took corrective measures.
Out of a total 124 Greek Cohesion Fund projects, 65 (46 environmental projects and 19 transport projects) have submitted a winding-up declaration. Most declarations have been accepted by Directorate-General for Regional Policy, for one project a financial correction was proposed and for another project the closure was suspended for the project not being operational.
In the 2010 Annual Activity Report of the Directorate-General, an unqualified audit opinion was issued in respect of Cohesion Fund Greece as an action plan for the winding-up body EDEL had been closed in 2009, and the issues identified with public procurement were addressed with a large financial correction in 2008. Furthermore, each Cohesion Fund project is audited by EDEL at least once before closure. The Commission for its part also examines the winding-up declarations on an individual basis before the closure of the projects, ensuring that any irregular expenditure can be identified and deducted at the closure of each project.
4.2.2. Spain
During 2010 the Commission services undertook the follow-up of an audit mission carried out in November 2009 and a financial correction amounting to EUR 1.3 million was proposed. The main findings related to irregular modifications of contracts not being detected by the national authorities during the closure procedure.
In addition, the follow-up of several previous audit missions performed by the Directorate-General for Regional Policy and the European Court of Auditors was concluded, including hearings and Commission correction decisions, resulting in financial corrections amounting to a total of around EUR 9 million. The corrections mostly relate to public procurement issues, in particular, additional works and irregular award criteria. As a follow-up of previous Court of Auditors' audit findings, the audit services of the Directorate-General for Regional Policy concluded the financial correction procedure for the last DAS case of 2006. The correction proposed by the Commission for this project amounts to EUR 5.66 million.
Concerning the closure of Cohesion Fund projects an improvement in terms of number of treated and finalised closure cases was experienced during 2010, partly as a result of the creation of a specific closure task force for Spanish Cohesion Fund projects within the Directorate-General for Regional Policy. In March, June, July and November 2010 four hearings were held in Brussels with the purpose of finalising the closure of 28 projects affected by irregularities not decertified by the Member State. The Commission decision of the first hearing was adopted in September 2010 imposing a financial correction of around EUR 2.7 million and the other correction decisions will follow.
Cumulatively a total of 199 winding-up declarations for the closure of Spanish Cohesion Fund projects have been received so far. Out of these, 75 new winding-up declarations were analysed by the audit services of the Directorate-General for Regional Policy during 2010. In many cases, irregular expenditure declared to the Commission was detected, mainly in relation to public procurement procedures and VAT eligibility. In addition to the first assessment related to these 75 winding-up declarations, the Directorate-General for Regional Policy audit services made a second and third assessment in several cases, having received additional information from the Member State. Following this analysis of the winding-up declarations, the audit services identified irregular expenditure amounting to around EUR 9.35 million which was decertified by the Member State during 2010.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 was received and examined by the Commission in 2010 and it covered all the regional bodies of Spain.
The annual bilateral co-ordination meeting between Commission and Spanish auditors covering the 2009 audit exercise took place in Madrid in May 2010. During the meeting the auditors of the Directorate-General for Regional Policy insisted on corrective measures in relation to irregular additional contracts.
In the Annual Activity Report of the Directorate-General for 2010, a qualified opinion with moderate impact was given for the management and control systems of Cohesion Fund Spain 2000-2006. No reservation was proposed, as the financial risk to the Community budget is mitigated by the fact that the winding-up declarations are assessed by the winding-up body and the Commission services on an individual basis before the closure of projects, and any irregular expenditure can be identified and deducted at the closure of each project.
4.2.3. Portugal
In January 2008, the Directorate-General for Regional Policy signed a contract of confidence with "Inspecção-Geral de Finanças" (Portuguese winding-up body and audit authority) covering the Cohesion Fund and ERDF.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 and 11 winding-up declarations for the closure of Portuguese Cohesion Fund projects were analysed by the Directorate-General for Regional Policy in 2010. As a result, financial corrections were proposed for three projects.
In 2010, there were no audit missions carried out in relation to Cohesion Fund in Portugal. However, as a result of the follow up of previous audit missions and the assessment of winding-up declarations, the Commission proposed financial corrections in the amount of around EUR 12.9 million which were accepted by the Member State.
In the Annual Activity Report of the Directorate-General for Regional Policy 2010 an unqualified opinion was given for Cohesion Fund Portugal since the work of the audit bodies is considered reliable (contract of confidence) and the winding-up declarations are assessed individually before the closure of each project, allowing any irregular expenditure to be identified and corrected.
4.2.4. Cyprus
Based on the positive results of the review of the work of the winding-up body in 2008, the positive conclusions from other audit missions in Cyprus, and the desk work carried out, a contract of confidence for the Cohesion Fund and ERDF was signed between the Commission and the Cypriot Internal Audit Service (as the official audit body in Cyprus) in December 2008.
An unqualified opinion was issued for Cohesion Fund expenditure in Cyprus in the 2010 Annual Activity Report of the Directorate-General for Regional Policy.
4.2.5. Czech Republic
During 2010, follow up of Commission audits carried out in Czech Republic in previous years was undertaken. Two missions were closed without financial corrections and for a third mission the Czech authorities confirmed their acceptance of a finding. As regards a 2009 audit mission on retrospective verifications, which identified systemic issues related to the area of public procurement, the follow-up was continued in 2010 till 2011. Overall, as a result of the audit work the Czech authorities agreed to the implementation of corrections related to public procurement issues to the amount of EUR 6.8 million in the context of closure of Cohesion Fund projects in 2010. Some further financial correction procedures might be opened during 2011 as a result of the retrospective verification exercise and the scrutiny of the winding-up declarations.
As regards the European Court of Auditors' DAS 2006 audit of a Cohesion Fund transport project, the audit was closed in 2010 with a correction of around EUR 52,000 related to audit trail.
The Czech authorities have submitted the winding-up declarations and final payment claims for 29 Cohesion Fund projects, of which 10 in 2010. At the end of 2010 five winding-up declarations were interrupted as the Commission services requested further information from the Member State.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 concluded that "the functionality of the management and control systems was verified in 2009 with no major findings and no substantial discrepancies of a systemic character found".
In the 2010 Annual Activity Report of the Directorate-General a qualified opinion with moderate impact was given for Czech Republic Cohesion Fund projects. No reservation was proposed following the action taken by the Czech authorities under the retrospective verifications, and as the Commission is able to exercise close management of each Cohesion Fund project and to make a detailed check of the risk areas at closure.
4.2.6. Estonia
Following the positive results of audit work carried out in previous years, a contract of confidence was signed with Estonia in 2007, covering both the Cohesion Fund and the ERDF. No audit missions were carried out in Estonia in 2010, and the previous audit missions were followed up and closed before 2010.
Six winding-up declarations were examined in the context of the closure of Estonian Cohesion Fund projects in 2010. Directorate-General for Regional Policy also analysed the annual control report under Article 12 of Regulation (EC) No 1386/2002.
In the 2010 Annual Activity Report of the Directorate-General an unqualified opinion was given for Cohesion Fund Estonia.
4.2.7. Hungary
A closure audit mission covering two Hungarian environment projects was carried out by the Directorate-General for Regional Policy in November 2010. On the basis of preliminary assessments no major deficiencies were identified.
As regards the follow-up of a public procurement mission covering five Cohesion Fund projects carried out in December 2009, important findings were identified on significant variations of the quantities of work items and direct award of additional contracts. As a result, a financial correction of EUR 2.5 million has been proposed, and the follow-up of the audit continues in 2011.
At end of 2010, cumulatively 14 winding-up declarations had been received for Hungarian Cohesion Fund projects (7 Environment, 4 Transport and 3 technical assistance). No major issues have been detected in the winding-up declarations.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 reported an overall error rate of 1.28% for Cohesion Fund projects in Hungary (3.8% for the transport sector, and 0.3% for the environment sector).
In the 2010 Annual Activity Report of the Directorate-General, as regards the Hungarian transport sector, a reservation and a qualified opinion with significant impact was given due to the high error rate identified by the national audit body, the results of the Commission audit in 2009 detecting several public procurement irregularities, weaknesses identified in the implementation of financial corrections recommended by the winding-up body, and in detection and correction of public procurement related irregularities at national level.
For the environment sector and technical assistance projects a qualified opinion with moderate impact was given, due to the results of the Commission 2009 audit detecting several public procurement irregularities, weaknesses identified in implementation of financial corrections recommended by the winding-up body, and in detection and correction of public procurement related irregularities at national level.
4.2.8. Latvia
In 2010, there were no audit missions carried out in relation to Cohesion Fund in Latvia. For the environmental sector twelve winding-up declarations have been received and analysed by the Commission services. Seven of them have been accepted, but for the other five, financial corrections have been proposed for the lack of compliance with the requirements of Article 7.3 (d) of Directive 93/37 (in particular direct award of additional contracts). First hearings were organised in October 2009 for one project and in July 2010 for four projects and the follow-up continues in 2011. For the technical assistance projects three winding-up declarations have been received and assessed by the Commission. For two cases additional information has been requested from the national authorities. For the transport sector, ten winding-up declarations have been analysed and all have been accepted.
In the Annual Activity Report of 2010, for the Cohesion Fund in Latvia a qualified opinion with moderate impact was given, due to the deficiencies raised regarding the independence of the winding-up body, the weaknesses detected in public procurement procedures and in the implementation of sample checks, the reliability of MIS data and the separation of functions between implementing and intermediate bodies.
4.2.9. Lithuania
As follow-up of a mission carried out by the Directorate-General for Regional Policy in 2008 on three Cohesion Fund projects, a financial correction of around EUR 2.9 million was proposed by the Commission in 2010 relating to cost increases and public procurement issues. Furthermore, a European Court of Auditors DAS 2008 audit covering nine Cohesion Fund projects identified deficiencies in the public procurement procedures which may lead to financial corrections to be applied in 2011.
Seven winding-up declarations were submitted in 2010. Altogether, by the end of 2010, the Directorate-General for Regional Policy had accepted 14 winding-up declarations and a further seven winding-up declarations were interrupted due to issues identified in public procurement, and unachieved projects objectives. For one project the national authorities accepted to withdraw an amount of EUR 30,177 related to public procurement irregularities.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 was received and analysed by the Commission in 2010. The national authorities raised no major issues.
In the 2010 Annual Activity Report of the Directorate-General for Regional Policy a qualified opinion with moderate impact was given in respect of Cohesion Fund Lithuania on the basis of the deficiencies identified in public procurement, cost increases, and unachieved project objectives. No reservation was proposed, as the Directorate-General is able to exercise close management of each Cohesion Fund project and assess in detail the risk areas at closure.
4.2.10. Malta
No audit missions or financial correction procedures were carried out for the Cohesion Fund in 2010. Previous audit missions carried out in 2005 and 2007 did not give rise to any significant findings.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 was received and examined; it highlighted sufficient audit coverage and a zero error rate for Cohesion Fund projects.
An unqualified opinion was issued for Cohesion Fund 2000-2006 expenditure in the 2010 Annual Activity Report of the Directorate-General for Regional Policy. The management and control system in Malta can be considered as good practice.
4.2.11. Poland
In April and June 2010 a hearing took place in respect of two Commission public procurement audits from 2005 and 2006, during which the Polish authorities and the Commission services reached an agreement on a 2% flat rate correction in respect of the five systemic irregularities in public procurement area which the Commission detected in its audits. The 2% net correction will be applied to all not yet closed Polish Cohesion Fund projects at closure. In total this correction corresponds to over EUR 111 million.
In September 2010, the Directorate-General for Regional Policy organised another hearing for one Polish Cohesion Fund project for which a financial correction of around EUR 0.8 million had been proposed at the closure of the project. A Commission decision on financial correction will be adopted in 2011.
Documentation in relation to 11 winding-up declarations (including Polish authorities responses to the earlier interruption letters) was analysed during 2010. Cumulatively, out of 30 winding-up declarations received up to the end of 2010, 6 projects have been closed by the European Commission, 11 winding-up declarations have been analysed and for 13 projects the procedure was on-going at the end of 2010. Closure documentation received for projects in the transport sector revealed deficiencies in the quality and/or coherence of tender documentation (designs, technical specifications, bills of quantities). Consequently tender procedures and contract implementation were in some cases delayed which resulted in claims for deadline extensions by contractors and in contract price increases, unjustified direct award of additional works and services and litigation, potentially risking irregular expenditure being declared to the Commission.
Consequently, a qualified opinion with moderate impact was expressed in 2010 Annual Activity Report for Cohesion Fund Poland, due to deficiencies identified in detection and correction of public procurement issues (mainly in relation to direct awarding of additional works and services). It was considered that this risk is mitigated by the agreement of the Polish Audit Authority to verify compliance with public procurement rules of contracts at project closure and by the thorough assessment of closure documents by the Commission services at closure.
4.2.12 Slovakia
As for follow-up of Directorate-General for Regional Policy audit missions carried out in previous years, in 2010 for one audit, one finding was closed with a deduction of irregular expenditure of around EUR 1.7 million by the Member State, with a further correction of around EUR 0.11 million to be followed-up in 2011. A second public procurement audit from 2005 was closed in 2010 with a proposed financial correction of around EUR 0.86 million.
For the closure of projects, during 2010, nine winding-up declarations were analysed by the Commission services resulting in proposed corrections, some accepted by the Member State and some having no net financial impact. For five of these projects a hearing was held in December 2010, after which a financial correction decision of around EUR 1.28 million covering three projects is in preparation. There are a further five winding-up declarations pending finalisation with potential corrections amounting to around EUR 10.3 million. All the financial corrections related to the winding-up declarations concern non-compliance with public procurement rules.
In the 2010 Annual Activity Report of the Directorate-General for Regional Policy, the opinion for Cohesion Fund Slovakia was qualified with moderate impact due to weaknesses in management verifications of public procurement by the intermediate bodies. However, the risk is mitigated by the fact that risks have been identified during audits carried out in Slovakia and can be thoroughly followed up by Commission services when assessing the winding-up declarations for each Cohesion Fund project.
4.2.13 Slovenia
On the basis of audit work carried out in the years 2005-2007, a contract of confidence was signed with Slovenia in February 2008, covering the Cohesion Fund and ERDF. Following that contract, no Cohesion Fund audit missions were carried out by the Directorate-General for Regional Policy in Slovenia in 2010.
The audit work in 2010 included the examination of the annual control report under Article 12 of Regulation (EC) No 1386/2002 and of the annual summary for 2010. Of the 28 projects to close, altogether fourteen winding-up declarations have been submitted and out of these four were examined and accepted without major remarks in 2010.
Accordingly, the 2010 Annual Activity Report of the Directorate-General for Regional Policy presented an unqualified opinion for Cohesion Fund expenditure in Slovenia.
4.2.14. Bulgaria
One closure audit mission was carried out in April 2010. The objective of the audit was to check the adequacy of the audit work of the winding-up body - Executive Agency for the Audit of EU Funds (EAAEUF). The main findings relate to insufficiency of checks on revenues generated by projects and public procurement, and a breach of publicity requirements. In addition, it was noted that the sample checks did not cover any of the Cohesion Fund projects which received EIB loans.
In 2009 the EAAEUF was requested to examine the direct award of contracts in the environment sector. The results of this national audit were received in February 2010, and revealed an illegal use of the negotiated procedure without prior advertising (i.e. direct award) for 16 contracts in the environment sector. In November 2010 the managing authority accepted to implement a correction of around EUR 18 million. Furthermore, proposed corrections amounting to approximately EUR 0.7 million in relation to two service contracts are followed up by the Directorate-General for Regional Policy in 2011.
The European Court of Auditors audited in their DAS 2010 exercise two Bulgarian Cohesion Fund projects. For one of the projects the Court identified a compliance issue related to delays in the tender award procedure without financial impact. For the second project, the Court identified some important findings in respect of a lack of supporting tender documentation, irregular direct award of additional works, design issues resulting in safety concerns, and the necessity for some of the structures built. For these cases a detailed follow-up continues in 2011.
During 2010 five winding-up declarations were received and analysed. The closure of one project was interrupted because additional audit work had to be carried out.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 was received and analysed in 2010. The report highlighted weaknesses in public procurement issues for the environment sector. For the transport sector the opinion of the Bulgarian audit authority was unqualified.
In the 2010 Annual Activity Report of the Directorate-General, the environment and transport (excluding National Roads Infrastructure Agency) sectors were give a qualified opinion with moderate impact, as the management verifications are not detecting breaches of the public procurement law, and there is limited reliance on the work of the winding-up body. For one transport sector project managed by the National Roads Infrastructure Agency, a qualified opinion with significant impact was given, due breaches of public procurement rules and other weaknesses identified by the Commission and the European Court of Auditors.
4.2.15. Romania
During 2010, follow-up was done for a closure audit carried out in December 2009. In general, the audit concluded that there was reasonable assurance that the Romanian winding-up body complied with its obligations, but improvements were recommended for future winding-up declarations in consistency of financial information, error rate computing, and irregular expenditure arising due to subcontracting.
As follow-up to a public procurement audit mission carried out in 2009, a hearing was held in April 2010. During the contradictory procedure the financial corrections relating to irregularities found in public procurement contracts in amount of EUR 1.4 million were accepted by the Member State.
The annual control report under Article 12 of Regulation (EC) No 1386/2002 was submitted and examined by the Commission in 2010. One winding-up declaration was analysed during 2010, leading to further clarifications being requested from the Romanian authorities.
In the 2010 Annual Activity Report of the Directorate-General the opinion issued for Cohesion Fund Romania was qualified with moderate impact.
4.3. Irregularities notified by the Member States
In 2010, OLAF opened 8 operational cases related to the Cohesion Fund and undertook 4 on the spot checks on economic operators[4] as well as 2 missions to gather information. Typical problems identified by OLAF include the failure to abide by public procurement rules.
As this report covers the implementation during 2010 of Cohesion Fund projects adopted under the 2000-2006 only notifications made under Regulation (EC) 1831/1994 are taken into account. 76 notifications of irregularities involving a total affected amount of EUR 34 564 486 in respect of projects co-financed by the EU related to the above mentioned period have been reported to the Commission. From the affected amount of EUR 34 564 486, an amount of EUR 9 089 496 still needs to be recovered. Most of the cases were reported by Greece, Poland, Portugal and the Czech Republic (16, 15, 11 and 10 respectively). However, Greece, Czech Republic, Spain and Lithuania reported approximately 75% of the involved amount. Table 7 shows the details by Member State.
The two main types of reported irregularities are infringements of public procurement rules (60%) and ineligible expenditure (30%).
Table 7. Irregularities and EU financial impact reported by Member State in 2010 under Regulation (EC) N 1831/1994– programming period 2000-2006 (in EUR)
Member State || Number of irregularities || Affected amounts || % || Amounts to be recovered || %
Bulgaria || 0 || || || ||
Cyprus || 0 || || || ||
Czech Republic || 10 || 5 900 612 || 17,07% || 467 210 || 5,14%
Estonia || 0 || || || ||
Greece || 16 || 8 011 028 || 23,18% || 18 046 || 0,2%
Spain || 8 || 6 661 294 || 19,27% || 5 779 950 || 63,59%
Hungary || 3 || 1 748 494 || 5,06% || 1 748 494 || 19,24%
Ireland || 3 || 1 627 701 || 4.71% || 0 ||
Latvia || 2 || 120 155 || 0,35% || 0 ||
Lithuania || 7 || 5 055 374 || 14,63% || 626 036 || 6,89%
Malta || 0 || || || ||
Poland || 15 || 939 617 || 2,72% || 0 ||
Portugal || 11 || 4 372 226 || 12,65% || 321 775 || 3,54%
Romania || 0 || || || ||
Slovenia || 0 || || || ||
Slovakia || 1 || 127 985 || 0,37% || 127 985 || 1,41%
TOTAL || 76 || 34 564 486 || 100 || 9 089 496 || 100
4.4. Irregularities and financial corrections
During 2010, two decisions on a financial correction were adopted for the 2000-2006 Cohesion Fund projects in Spain for an amount of EUR 10.5 million. In addition, at the request of the Commission, the Member States agreed to exclude a further EUR 164.5 million from their statements of expenditure.
Table 8. Financial corrections decided or agreed in 2010 for the Cohesion Fund, period 2000-2006
Member State || Accepted by Member State || Commission Decision
Bulgaria || 18 473 452 ||
Cyprus || - ||
Czech Republic || 6 814 710 ||
Estonia || ||
Greece || || -157 141.71
Spain || 10 502 068 || 10 503 963
Hungary || ||
Ireland || 627 640 ||
Latvia || 506 270 ||
Lithuania || 30 177.08 ||
Malta || ||
Poland || 111 246 392.49 ||
Portugal || 12 925 560.66 ||
Romania || 1 728 070.44 ||
Slovenia || ||
Slovakia || 1 668 162.81 ||
TOTAL || 164 522 505.16 || 10 346 821.29
The above table does not include the results of the Member States' own checks of Cohesion Fund expenditure.
5. Evaluation
The Commission in close cooperation with the Member State and managing authorities carries out the ex-post evaluation. The most recent Cohesion Fund ex-post evaluation was launched in 2009 examining all Cohesion Fund and ex-ISPA projects implemented during the years 2000-2006, and the final report is expected in January 2012. The evaluation assesses the contribution of the Cohesion Fund and ISPA (i) to the development of the EU transport system, (ii) to achieving the EU acquis in the field of environment and (iii) to the impact of ISPA as a preparation for the programmes of the Structural and Cohesion Funds. As part of the overall Cohesion Fund ex-post evaluation, ex-post cost-benefit analyses were conducted for a sample of transport and environment projects, to identify lessons for future programming periods.
The first results from the ex-post evaluation for transport infrastructure show that the Cohesion Fund co-financed 1,281 km of new roads and 3,176 km of reconstructed roads (4,457 km roads in total). As regards, the rail sector 2,010 km of new rail and 3,840 km of reconstructed rail (5,350 km rail in total) were co-financed by the Cohesion Fund.
6. Information and publicity
6.1. Information to/from the Member States
As from 1 January 2007 all issues concerning the Cohesion Fund have been dealt within the Coordination Committee of the Funds (COCOF, established according to Regulation (EC) No 1083/2006).
Several issues relevant for the Cohesion Fund were presented and/or discussed during the meetings of the COCOF. These include:
§ DG Regional Policy informed about a proposal for a more flexible final date of eligibility (33rd and 34th meeting of the Coordination Committee of the Funds, Brussels, 28 January 2010 and 10 March 2010);
§ DG Regional Policy informed the Member States about the adoption of the Amendment of the Guidelines on the closure of Cohesion Fund and ex-ISPA projects 2000-2006 (April 2010);
§ DG Regional Policy held a debate on the Revised Guidance note on the amendment of decisions taken by the Commission for Cohesion Fund projects on the basis of Regulation (EC) No 1164/1994 as amended (38th meeting of the Coordination Committee of the Funds, Brussels, 22 September 2010);
§ DG Regional Policy presented the final version of the COCOF note 08/0007/03 "Revised guidance note on the amendment of decisions taken by the Commission for Cohesion Fund projects on the basis of Regulation (EC) No 1164/1994 as amended" of 24 September 2010 which became available in all three working languages (39th Coordination Committee of the Funds meeting, Brussels and Mons, 20 and 21 October 2010).
6.2. Commission measures on publicity and information
In 2010, the Directorate-General for Regional Policy has continued to report in great detail on the Cohesion Fund in its Annual Activity Report[5] and to publish details of major projects, including those financed by the Cohesion Fund, for both of the periods 2000-2006 and 2007-2013. The details of many of these projects are available in a searchable database on the INFOREGIO website. Cohesion Fund projects have also been included in a specific publication showcasing 150 examples of projects co-financed by European regional policy.
[1] Council Decision of 10 May 2010 (2010/320/EU), (OJ L 145, 11.6.2010, p. 6); Council Decision of 7 September 2010 (2010/486/EU), (OJ L 241, 14.9.2010, p. 12); Council Decision of 20 December 2010 (2011/57/EU), (OJ L 026, 29.1.2011, p. 15); Council Decision of 7 March 2011 (2011/257/EU), (OJ L 110, 29.4.2011, p. 26).
[2] The Council draws the same conclusion with regard to the macroeconomic and fiscal scenario underlying a Stability Programme for 2011-2014, submitted on 23 March 2011 by the Portuguese government to the national parliament, which rejected it.
[3] "Amendment of the Guidelines on the closure of Cohesion Fund and ex-ISPA projects 2000-2006", SEC(2010) 0405 of 19 April 2010
[4] Regulation (EC) N° 2185/1996, OJ L 292, 15 October 1996, p.2
[5] Published at http://ec.europa.eu/atwork/synthesis/aar/index_en.htm