How to manage effectively the financial implementation of the operational programmes Lazar Todorov Head of Department Management of EU Funds Directorate

How to manage How to manage effectively the financial effectively the financial implementation of the implementation of the

operational operational programmesprogrammes

Lazar TodorovHead of Department

“Management of EU Funds” Directorate

Ministry of Finance

Ministry of Finance 09.10.2008, Open days, Brussels

Ministry of Finance09.10.2008, Open days, Brussels

CONTENTSCONTENTS

Introduction of the LOTHAR system in Bulgaria;

Main advantages and main problems so far;

First forecasts and first results;

Next steps

EU EU SSTRUCTURAL TRUCTURAL IINSTRUMENTS ALLOCATIONS NSTRUMENTS ALLOCATIONS FOR FOR BBULGARIA 2007-2013ULGARIA 2007-2013

Objective/Fund Budget (€) Share

Convergence 4.391 bln 64.1 % ERDF3.205 bln 72.9 % ESF 1.186 bln 27.1 %

Cohesion Fund 2.283 bln 33.3 %

Total 6.674 bln 97.4 %

European Territorial Cooperation ERDF 179 mln 2.6 %

TOTAL 6.853 bln 100.0 %


Operational

Programme

Financial Allocation (mln €)

OP “Transport” 1 624 (ERDF + CF)

OP “Environment” 1 466 (ERDF + CF)

OP “Regional Development” 1 361 (ERDF)

OP “Human Resources Development” 1 032 (ESF)

OP “Competitiveness” 988 (ERDF)

OP “Administrative Capacity” 153 (ESF)

OP “Technical Assistance” 48 (ERDF)

BACKGROUND INFORMATIONBACKGROUND INFORMATIONBACKGROUND INFORMATION



THETHE LOTHAR SYSTEMLOTHAR SYSTEM

Necessity to:

Develop management and monitoring systems and tools

Comply with N+3/2 rule

Set up a system for early warning


THE INTRODUCTION OF THE LOTHAR THE INTRODUCTION OF THE LOTHAR SYSTEM IN BULGARIASYSTEM IN BULGARIA

Working group was set up;

The tables were jointly developed with the EC;

The first forecasts were elaborated and “frozen” for 1

year following Council of Minister’s Decision;

The first updates have been prepared as the first quarter

expired in the end of September 2008.


THE MAIN ADVANTAGES THE MAIN ADVANTAGES

Clear picture of the financial implementation of each OP;

Early warning system for identifying problems related to

the absorption of the Funds (at the level of the

OP/priority/operation/call;

Opportunity to undertake corrective measures in time.


THE MAIN CHALLENGESTHE MAIN CHALLENGES

The system is sophisticated;

Forecasting for a longer period is difficult;

The forecasts might be unrealistic;

System is still evolving;

Unwillingness of the MAs to use the system as a measurement

tool.


FIRST FORECASTS, FIRST RESULTS FIRST FORECASTS, FIRST RESULTS

Forecasts were “frozen” in June;

First quarterly review was made in September.

OP “Regional Development” ForecastOP “Regional Development” Forecast

0

200 000 000

400 000 000

600 000 000

800 000 000

1 000 000 000

1 200 000 000

1 400 000 000

1 600 000 000

I/07

III/0

7I/0

8III

/08

I/09

III/0

9I/1

0III

/10

I/11

III/1

1I/1

2III

/12

I/13

III/1

3I/1

4III

/14

I/15

III/1

5

NSRF Commitments

N+3/2

Contracting

Payment

Certification


By the end of Q3 we should have 62 659 354

contracted projects for the OP “Regional Development”

OP “Regional Development” actual performanceOP “Regional Development” actual performance


OP Regional Development

0

200 000 000

400 000 000

600 000 000

800 000 000

1 000 000 000

1 200 000 000

1 400 000 000

1 600 000 000

Time

Fin

anci

al D

ata

Commitments

N+3/2 Adv. Excl

Baseline for contracting

Total EU share of contracted projects

Baseline for payments

Total EU share paid

Baseline for certification

Total certified to the EC

Total EU share of contracted projects

is 105 773 035.


OP Regional Development

0

50.000.000

100.000.000

150.000.000

200.000.000

250.000.000

300.000.000

350.000.000

400.000.000

450.000.000

500.000.000I/

07

II/0

7

III/

07

IV/0

7

I/08

II/0

8

III/

08

IV/0

8

I/09

II/0

9

III/

09

IV/0

9

I/10

II/1

0

III/

10

IV/1

0

I/11

II/1

1

III/

11

IV/1

1

I/12

II/1

2

III/

12

IV/1

2

I/13

II/1

3

III/

13

IV/1

3

I/14

II/1

4

III/

14

IV/1

4

I/15

II/1

5

III/

15

IV/1

5

Time

Fin

anci

al D

ata


A case of over performance for Q3 2008

0

20.000.000

40.000.000

60.000.000

80.000.000

100.000.000

120.000.000

fore

ca

ste

d

co

ntr

acte

d

fore

ca

ste

d

pa

id

fore

ca

ste

d

ce

rtifie

d

contracting payment certification


Case of underperformance Q3 2008 Priority axis for TA

0

1.000.000

2.000.000

3.000.000

4.000.000

5.000.000

6.000.000

7.000.000

8.000.000

9.000.000

forecasted contracted forecasted paid forecasted certified

contracting payment certification


NEXT STEPSNEXT STEPS

to achieve the baselines “frozen” for the first year;

to embed the LOTHAR system in the Unified

management information system


Thank you for your attentionThank you for your attention!!

Documents

How to manage effectively the financial implementation of the operational programmes Lazar Todorov Head of Department Management of EU Funds Directorate