Bulgarian delegation 27 th November 2012

MEETING WITH

Bulgarian delegation27th November 2012

Financial Institute for Regional Development, PI National Coordinator for ERDF and CF

MEETINGNational Coordinator for ERDF and CF27th November 2012

Agenda

Presentation of the Financial Institute for Regional Development, PI

Portuguese experience concerning the use of Structural Funds

The Portuguese NSRF – main achievements and lessons learnt

The future of Cohesion Policy in Portugal


IFDR Functions

Presentation of IFDR, IP/FIRD, PI

Mission

Executes regional development policy through the financial

coordination of the community structural funds and of the Cohesion

Fund.

Financial Institute for Regional Development, PI


■ Put forward proposals of sustainable regional development policies

■ National financial coordination of the Structural Funds

■ National coordination for operational monitoring and management of the ERDF and the Cohesion Fund

■ Payment Authority / Certifying Authority

■ Payment entity for ERDF and CF

Main responsibilities



Global financial coordination of the community structural funds and of the Cohesion Fund

Coordination, management and physical and financial monitoring of the ERDF and of the Cohesion Fund and the management of technical assistance measures of these funds

Payment authority of the ERDF and Cohesion Fund, within the CSF III, and certifying authority and paying entity, within the NSRF, relating to these funds and territorial cooperation programs

2nd level control authority of the ERDF and of the Cohesion Fund, within the CSF III, and responsible for control of the operations, within the NSRF



The organizational model

The organs Flexible Structure, based on

Directive Council

Statutory Auditor

Units

Groups

Project Teams



Communication

Internal Audit

Legal Supportand Litigation

Technical Documentation

Planning and Programming

Audit

Territorial Cooperation and

Community Initiatives

InformationSystems

IS NSRF

Internal IS

Financial and Asset Administration

Human Resources

Financial Management

Coordination of Operational Management

Control and Audit

Statutory Auditor Directive Council

Body Unit Group

Support for Operational

Management ERDF and Cohesion

Fund

Control of Expense Declarations

Certification

Chairman Vice-ChairwomanVice-Chairman

Support for Institutional Management

FinancialCoordination

ERDF TA OPTechnical

Secretariat

Programming and Financial

Monitoring

Monitoring and Evaluation


Dire

ctive

Coun

cil

Func

tion

Uni

t

Vice-Chairman

Payments

Chairman

Control and Audit Internal Audit

Certification

Support for Institutional

Management Control

and Audit Certification

Internal Audit

Vice-Chairman


Portugal – 25 years implementing the Structural Funds

Portuguese Experience implementing the Structural Funds

0 50km

North

Centre

Alentejo

Algarve

Azores

Madeira

Lisbon

Portugal overview


Workforce of 5 581 thousand

Portugal Overview

Surface area 91 946,7 km2

Total population 10 562 thousand

Population density 115 hab por km2

Source: EUROSTAT/INE


Unemployment rate – 12,9% (2011)

Portugal Overview

2009 GDP – 168.503 M€

Exports – 28% of 2009 GDP

Gross public debt – 108% of GDP (2011)

Source: EUROSTAT/INE


Source: EUROSTAT

1995 1999 2006 200970

80

90

100

110

120

Evolution of GDP (PPS per inhabitant)

European Union (27 countries)European Union (25 countries)European Union (15 countries)Portugal

% o

f EU

27 G

DP


1990 1995 2000 2005 20100.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Resident population according to age groups

75 and over65 - 74 years25 - 64 years15 - 24 years0 - 14 years

Years

% o

f Res

iden

t Pop

ulati

on

Source: INE


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

0.5

1

1.5

2

2.5

Expenditure on R&D

EU (27 countries)Portugal

% o

f GDP

Source: EUROSTAT


1995 1999 20060

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

High Tech and knowledge intensive enterprises

Portugal

N.º

of E

nter

prise

s

Source: EUROSTAT


2001 2002 2003 2004 2006 2007 2009 20100

20

40

60

80

100

120

E-GovernmentOnline availability and interactivity of public services (supply

side)

European Union (27 countries)PortugalEuropean Union (15 countries)

% o

f Ba

sic S

ervi

ces

Source: EUROSTAT


1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 200950

60

70

80

90

100Population connected to Water Supply and Sewerage systems

Population connected to Pub-lic water supply systems

Population connected to Sewerage systems

% o

f Pop

ulati

on

Source: INE


2002 2003 2004 2005 2006 2007 2008 2009 0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

Waste ManagementSelective collection

Tonn

es

Source: INE


Journey time 1986-2006

Source: INE


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

500

1 000

1 500

2 000

2 500

3 000

National rail network

Length of lines TotalLength of lines ElectrifiedLength of lines Double track

Km

Source: INE


1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

500

1 000

1 500

2 000

2 500

3 000

National road network

Primary road network Main routesComplementary road network Complementary routesHighways

Km

Source: INE


Million Euros

20 years after Portuguese EU adhesion

Structural Funds

CSF I CSF II CSF III NSRF

6 958

13 980

22 83521 412


Portuguese NSRF

Main achievements and lessons learnt

The Portuguese NSRF – Main achievements and lessons learnt

National guiding principles Operational Concentration

Investment and Development Actions Selectiveness

Economic Viability and Financial Sustainability of Investments

Cohesion and Territorial Enhancement

Strategic Monitoring


NSRF – Territorial diversity

Convergence Regions – North, Centre, Alentejo e Azores

Statistical Phasing Out Region – Algarve

Regional Competitiveness and Employment Region – Lisbon

Phasing In Region – Madeira


Three thematic operational agendas

Competitiveness Factors

Human Potential

Territorial Enhancement

National

Strategic Reference Framework

Operational Programmes



Human Potential


- 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000

Financial Allocations per Thematic Agenda

Reprogramming Decision Initial Decision

Thousand Euros


Three thematic operational programmes

Competitiveness Factors (ERDF)

Human Potential (ESF)

Territorial Enhancement (ERDF + Cohesion Fund)

The priorities of the National Strategic Reference Framework are implemented through 24 Operational Programmes


Nine Regional OP by NUTS II

Ten Territorial Cooperation OP (Cross-border, Transnational, Interregional)

Two Technical Assistance OP

The priorities of the National Strategic Reference Framework are implemented through 24 Operational Programmes


PO Assistência Técnica FSE

PO Assistência Técnica

RUMOS (FSE Madeira)

PO Algarve

PRO-EMPREGO (FSE Açores)

PO Lisboa

PO Madeira

PO Alentejo

PO Açores

PO Centro

PO Norte

PO Fatores Competitividade

PO Valorização Território (FEDER + FC)

POPH (FSE)

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000

75

71

135

175

190

307

311

854

966

1,697

2,662

3,174

4,343

6,453

Financial allocations per OP

Structural Funds - Strategic Reprogramming (2012)

Structural Funds - Technical Reprogramming (2011)

Structural Funds - Initial Decision

Million €


P o r t u g a l

2 . 6 6 4 M €

2 n d p o s i t i o n

> 3 x a v e r a g e

PL PT ES DE GR HU IT LT RO SK CZ LV UK EE SI BG FR BE SE FI NL IE MT CY LU AT DK0

1,000

2,000

3,000

4,000

5,000

6,000

Montantes de PPI reembolsados pela COM em 2012 (até 01-out-2012)Média UE27

M€


PL ES DE HU GR PT CZ IT LT FR SK UK RO LV EE SI BG SE FI BE NL AT MT CY IE DK LU0

2,500

5,000

7,500

10,000

12,500

15,000

17,500

20,000

Montantes de PPI reembolsados pela COM entre 2008 e 01-out-2012Média UE27

M€P o r t u g a l

6 . 2 5 0 M €

6 t h P o s i t i o n

2 x A v e r a g e


SE LT LU FI DE IE PT EE NL GR BE PL UK SI ES DK CY LV FR HU AT SK MT CZ BG IT RO0%

10%

20%

30%

40%

50%

Rácio de PPI reembolsados pela COM entre 2008 e 01-out-2012 face à programaçãoMédia UE27

P o r t u g a l

4 2 %

7 t h p o s i t i o n

> a v e r a g e



Enterprises supported through incentive systems 7.651

Supported start-ups 800

Enterprises supported through financial instruments 6.833

Elegible investment in R&D 1791 M€

Collective Actions supported 1.127

Projects supporting administrative modernisation 1.604

Data updated until 30.09.2012 concerning contrated projects



Road Network under construction/rehabilitation 3 395 km

Water Supply and Sewerage sytems under construction/rehabilitation 6 885 km

Projects concerning risk prevention, management and monitoring 548

Public facilities 783



Human Potential

Pre-School Education and 1st Cycle of Basic Education Schools 720

2nd and 3rd Cycle of Basic Education Schools 40

Secondary Education Schools 88

Universities 19

Training centres 8



Simplification

Why?

To counteract the effects of the economic crisis To accelerate the implementation of the current programming

period To clarify procedures

How?

Through the amendments of the Regulations: EU and national levels

Through the adjustment/clarification of procedures and guidelines


Amendments of the EU Regulations

Amendments of the General Regulation, the EFRD Regulation and the Implementation Regulation (2009, 2010, 2011)

Expenses of major projects included in expenditure declarations before the the adoption of the Commission decisions

The changes of the conditions regarding the advances paid to the beneficiaries included in the statement of expenditure (deletion of the 35% limit)

Co-financing repayable assistance


Amendments of the EU Regulations

Amendments of the General Regulation, the EFRD Regulation and the Implementation Regulation (2009, 2010, 2011)

The reinforcement of the pre-financing The application of the top-up mechanism

The use of the temporary state aid framework


Co-financing repayable assistance

Clarification of a procedure implemented in the portuguese NSFR

Applicable to aid schemes to SMEs

By 31st December 2011 more than 9% of the operations supported by the NSRF were included in this category


Expenses of major projects included in expenditure declarations before the the adoption of the Commission decisions

Pre-condition: previous notification to the Commission By 30th September 2012 expenses of 5 major projets were

included in expenditure declarations: 214 M€ of eligible expense

These 5 projects represent 56% of major projects notified to the Commission waiting for decision


The changes of the conditions regarding the advances paid to the beneficiaries included in the statement of expenditure (deletion of the 35% limit)

By 31st December 2011, 1 100 projects involved advances paid to the beneficiaries (incentive schemes), 331 of which exceeded the 35% limit

Advances paid to the beneficiaries included in the last

statement of expenditure of 2011: 17% of the public expense

Competitiveness Factors OP: 19,3%; Regional OP Centre: 26%; Regional OP Alentejo: 26%


The reinforcement of the pre-financing

Until 31st December 2011: 1,1 milliard € of pre-financing paid by the Commission 3,6 milliard € of interim payments paid by the Commission

From the 5 milliard € transferred to the beneficiaries/

intermediate bodies: 26% were advances From wich: 16% of advances under incentive schemes

Reinforcement of the liquidity in the real economy


The application of the top-up mechanism

Pre-condition: applied to each certified statement of expenditure submitted during the period in which Member-States benefit from the financial assistance made available in accordance with Council Regulation (EU) n.º 407/2010 of 11 May 2010 – on request

The increase by an amount corresponding to 10 pp above the co-financing rate (priority axis)

Until 31st October 2012: 299 M€ received by the Comission under this mechanism and 101 M€ paid to beneficiaries


The use of the temporary state aid framework

New limit of minimis (500 000 €) applied in 2009 and 2010 330 M€ granted during this period, from which 42 M€ by the

NSRF OPs: 40 M€ from the ERDF and 2 M€ from the ESF

Extension of the new limit to the operations submitted until 31st December 2010 and approved in 2011

More 7,6 M€ granted by the NSRF OPs, from which 7,3 M€ from the ERDF and 319 467 € by the ESF


Amendments of the national regulations

Amendments of the General Regulation Governing the ERDF and Cohesion Fund and of the specific regulations applied to the OPs

Changes in 2009, 2010 and 2011 aiming to promote the implementation of the EFDR and the CF

Adjustments regarding procedures: payment requests

presented by the beneficiaries; the use of advances paid to beneficiaries; submission of projects (GR)


Amendments of the national regulations

Amendments of the General Regulation Governing the ERDF and Cohesion Fund and of the specific regulations applied to the OPs

Establishment of higher cofinancing rates – public investment

Increase of the payment rate (5 pp above the cofinancing rate; top up mechanism) – public investment

Amendments of 29 specific regulations applied to the OPs in 2010 (including aid schemes) and 39 specific regulations in 2011


Municipalities investment

3 memos signed between the Government and the National Association of Municipalities

Cofinancing rates

Submission of operations “ongoing”

Establishment of “performance plafonds” – high rates of execution

Forms simplification; check-lists simplification


Municipalities investment

3 memos signed between the Government and the National Association of Municipalities

Annulation of operations without execution / low rates of execution

Release of 250 M€ - operations of municipalities – alocate to new iniciatives (youth employment and school equipments)

National match funding of public beneficiaries supported by loans granted through a lending framework signed between the Government and the EIB


Support to SMEs

To strengthen competitiveness of the national SMEs

Credit lines (PME Investe, QREN Investe)

INVESTE QREN - financing of the match funding of the NSRF private beneficiaries - 1 milliard € from which 500 M€ derive from the lending framework signed between the Government and the EIB


Remarks on 2014-2020

Programming Cycle in Portugal

Portugal and the 2014-2020 Programming Cycle

The Portuguese government approved a resolution defining a set of priorities for CSF funds during 2014-2020 period:

■ Promotion of economic competitiveness

■ Education and Training of Human resources

■ State reform

Political Guidelines


Those priorities are translated in the following objectives:

■ Support for the production of tradable goods and services

■ Structural reorientation of the Portuguese economy through boosting industry and sustainable development

■ Reinforcement of investment in education and professional training

■ Support social inclusion and fight poverty

■ Promotion of territorial cohesion and competitiveness

■ Support the state reform

Political Guidelines


Through that resolution (RCM n.º 98/2012, 26th November), the Portuguese Government defined the political and administrative framework for the negotiation of the Partnership Agreement:

Strategic guidance and political coordination – Prime Minister (delegated to the Deputy Secretary of State of Prime Minister);

Operational coordination – Deputy Secretary of State for the European Affairs; through the Specialised Sub-commitee on the Negotiation of the Partnership Agreement, which is created within the scope of the Inter-ministerial Committee for European Affairs


The Ministry of Economy and Employment has set up a working group responsible for the preparation of the next programming period concerning subjects under his competencies, coordinated by the Deputy Secretary of State in the Economy and Regional Development.

Preparation of 2014-2020 Programming

Working Group on 2014-2020 Programming

Working group on strategic options

Working group on operational organisation


Thank you for your attention!

More information at your disposal www.ifdr.pt

http://www.ifdr.pt/

Documents

Bulgarian delegation 27 th November 2012