IPARD- Programming exercise

Agnieszka Rutkowska, DG AGRI – G.4

Workshop on preparation of Western Balkan countries for IPARDMontenegro, Bar, 4-5 September 2008

EU PreEU Pre--Accession Accession assistanceassistance

IPA is an integrated Pre Accession Instrument to assist

assistanceassistance

IPA is an integrated Pre-Accession Instrument to assist candidate and potential candidate countries

It replaces 5 different programmes and instruments: PHARE, ISPA, SAPARD, CARDS and Turkey pre-accession instruments

It will ensure:

– Higher level of coherence and co-ordination of EU Assistance and

– better preparation for Structural, Cohesion and Rural development Funds through progressive emulation of EU funds rulesg p g

Financial envelope allocated for the period 2007–2013: 10.2billion billion €€ (at 2004 prices)(at 2004 prices)

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IPA IPA –– Components & Components &

Beneficiary CountriesBeneficiary CountriesBeneficiary CountriesBeneficiary Countries

Annex II: Albania, Annex II: Albania, B i d H iB i d H i1.1. Transition Assistance & Transition Assistance &

Institution BuildingInstitution Building

Bosnia and Herzegovina,Bosnia and Herzegovina,Montenegro, Serbia and Montenegro, Serbia and Kosovo Kosovo (under UNSCR 1244)(under UNSCR 1244)

2. Cross2. Cross--Border CooperationBorder Cooperation

Annex I: Annex I:

3. Regional Development3. Regional Development

4 Human Resources Development4 Human Resources Development

e :e :Croatia, TurkeyCroatia, TurkeyFYR of FYR of MacedoniaMacedonia4. Human Resources Development4. Human Resources Development

5. Rural Development (IPARD)5. Rural Development (IPARD)

MacedoniaMacedonia

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IPA IPA –– Policy framework and Policy framework and ProgrammingProgramming

MultiMulti--annual Indicative Financial Framework (MIFF)annual Indicative Financial Framework (MIFF)

ProgrammingProgramming

establishes the financial allocation between countries and componentsestablishes the financial allocation between countries and components

MultiMulti--annual Indicative Planning Document (MIPD)annual Indicative Planning Document (MIPD)g ( )g ( )establishes strategies for each country for the IPA components, establishes strategies for each country for the IPA components, based on the priorities set in the Accession Partnership, NPAA based on the priorities set in the Accession Partnership, NPAA

and the Regular Reportsand the Regular Reports

Components for specific programmingComponents for specific programming

Transition Transition & Institution& Institution

BuildingBuilding

Regional &Regional &CrossCross--BorderBorder

CoCo--opop

RegionalRegionalDevelopmentDevelopment

Human Human ResourcesResources

DevelopmentDevelopment

Rural Rural DevelopmentDevelopment

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DevelopmentDevelopment

IPARD Legal backgroundbackground

Council Regulation (EC) No 1085/2006 of 17 July 2006

Commission Regulation (EC) No 718/2007 of 12 June 2007

Framework Agreement

Fi i l R l ti

Sectoral Agreement

« Financial Regulation »Council Regulation (EC, Euratom) No 1605/2002 of 25 J 2002

Financing Agreements

25 June 2002

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Basic conditions to implement IPARDBasic conditions to implement IPARDpp

IPARD Programme (multi-annual), approved by a Commission Decision;approved by a Commission Decision;

Agreement(s) concluded (Framework,Agreement(s) concluded (Framework, Sectoral, Financial);

Conferral of management decision adopted

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Programme (Art 184 of Reg 718/2007)Programme (Art. 184 of Reg. 718/2007)

Drawn up at the national level Contains measures available under the rural development component Prepared by the authorities designated by the beneficiary countrySubmitted to the Commission after consulting the appropriate parties

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Programme- content (Art. 184 of Reg. 718/2007)g ( g )

Current situationSWOT analysisN i l l d lNational rural development strategyTranslation of strategic approach and Sectoral strategies into the rural development componentFinancial tableFinancial tableMeasures chosenOperating structureAuthorities and bodies responsible for carrying out the p y gprogrammeResults of the consultation of programmeEx ante evaluation

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IPARD

IPARD Objectives

• Contribution to the implementation of the acquis communautaire concerning the Common Agriculturalcommunautaire concerning the Common Agricultural Policy and related policy areas by the candidate countries

• Contribute to sustainable development of rural areas inContribute to sustainable development of rural areas in the candidate country

To be met by implementation of 9 differentTo be met by implementation of 9 differentTo be met by implementation of 9 different To be met by implementation of 9 different measures under 3 priority axismeasures under 3 priority axis

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Priority Axesy

Axis 1 Improving Market Efficiency and p g yImplementation of Community Standards

Axis 2 Preparatory Actions for Implementation of the Agri-environmental Measures and LeaderMeasures and Leader

Axis 3 Development of the Rural Economy10

Axis 3 Development of the Rural Economy

Axis 1 - Improving Market Efficiency and Implementing Community StandardsImplementing Community StandardsMeasuresMeasures

1. Investments in agricultural holdings to restructure and upgrade to the EU standards

2 S pport for the setting p of prod cer gro ps2. Support for the setting up of producer groups3. Investments in processing and marketing of

agriculture and fishery products to restructure and g y pupgrade to the Community standards

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Investment in agricultural holdings (Art. 174 of Reg. 718/2007)

Investment in agricultural holdings– to upgrade them to Community standards pg y– and to improve their overall performance

Assistance can be granted to holdings which– Can demonstrate economic viability at the end of the realisation of the y

investment– Comply with national minimum standards when the decision to grant

support is taken

B fi i i f d th l l titi ibl f i tBeneficiaries- farmers and other legal entities responsible for carrying- out and financing the investment in the holding

Examples of the possible investments: construction and reconstruction of operation buildings, storage facilities, production facilities, stables for animals, milking and cooling

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buildings, storage facilities, production facilities, stables for animals, milking and cooling equipment etc.

Support for setting up of producer gro psgroups (Art. 175 of Reg. 718/2007)

Assistance to facilitate the setting up and administrative operation of producer groups which were established for the purpose of:– Adapting the production to market requirements– Jointly placing goods on the market– Establishing common rules on production information

SupportSupport– a flat-rate aid – granted in annual instalments for the first five years following the

date on which the producer group was recognisedSupport calculated on the basis of the group’s annual market– Support calculated on the basis of the group s annual market production

• First, second, third, fourth and fifth years to 5%, 5%, 4%, 3% and 2% respectively of the value of market production up to 1mio €

• First second third fourth and fifth years to 2 5% 2 5% 2% 1 5%

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First, second, third, fourth and fifth years to 2.5%, 2.5%, 2%, 1.5% and 1.5% respectively of the value of market production > 1mio €

Investment in processing and marketing of agriculture and fishery products g y p(Art. 176 of Reg. 718/2007)

Assistance in enterprises to upgrade them to Community standards– to upgrade them to Community standards

– and to improve their overall performance in the processing and marketing of primary agricultural and fishery products

Support can be granted for investments in enterprises whichSupport can be granted for investments in enterprises which– Can demonstrate economic viability at the end of the realisation of the

investment– Comply with national minimum standards when the decision to grant

support is taken

Beneficiaries- enterprises (national law of the beneficiary country)

Examples of the possible investments: the purchase or lease-purchase of new machinery and equipment

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machinery and equipment

Axis 2- Preparatory actions for implementation of the agri environmental measures and local ruralagri-environmental measures and local rural development strategiesMeasuresMeasures

4. Preparation for implementation of actions relating to environment and the countryside

5. Preparation and implementation of local rural development strategies

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Preparation for implementation of actions relating to environment and countryside g y(Art. 177 of Reg. 718/2007)

Development of the practical experience with agri- environmentalt i l t ti t b th d i i t ti d f l lpayments implementation at both administrative and farm level

Pilot actions on limited number of areas with identified environmental objectivesBeneficiaries- farmers who make on a voluntary basis a commitment

i b d th d t t d dgoing beyond the mandatory standardsPayments – shall be granted annually– cover additional costs, income forgone and where necessary also , g y

transaction cost– Based on the calculation

Examples of commitments: organic farming, reduction, better management of fertilisers, diversification of crop-rotations etc.

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, p

Preparation and implementation of local rural development strategies (1)local rural development strategies (1) (Art. 178 of Reg. 718/2007)

Pilot- simplified Community LEADER approach under IPARDPilot- simplified Community LEADER approach under IPARDDevelopment of practical experience with the Community LEADER approach at local and administrative levelLocal public private partnership (Local Action Group- LAG)Bottom p approach ith a decisions making po er for localBottom-up approach with a decisions making power for local action groups concerning the elaboration and implementation of the local development strategies

A i iti f kill i ti d ti th d l tAcquisition of skills, animation and supporting the development of local development strategiesImplementation of local development strategiesRunning costs of LAGs

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Implementing cooperation projects

Axis 3 - Development of the Rural EconomyMeasuresMeasuresMeasuresMeasures6. Improvement and development of rural

infrastructureinfrastructure7. Diversification and development of rural

economic activitieseconomic activities8. Improvement of training……………………………………………………9. Technical assistance

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Improvement and development of r ral infrastr ct rerural infrastructure (Art. 179 of Reg. 718/2007)

Assistance for investments aimed at improving and d l i l i f t tdeveloping rural infrastructurePriorities for investments

water and energy supply– water and energy supply, – waste management, – local access to information and communication

technologies, – local access to roads

19– fire protection infrastructure

Diversification and development of rural economic acti itieseconomic activities (Art. 180 of Reg. 718/2007)

Assistance to investments aimed at diversification and development of ruraleconomic activity by:

R i i f th i ti it– Raising of the economic activity– Creation of the employment opportunities– Diversification into non- agricultural activities

P i it h ll b i t i t t f th ti d d l tPriority shall be given to investments for the creation and development– micro and small enterprises,– crafts and rural tourism, with a view to promoting entrepreneurship

B fi i f d th i t l l titi t bli h d i lBeneficiary- farmers and any other private legal entities established in ruralareas undertaking the activity

Examples of investments: alternative productions like medical and spice herbs,mushrooms, providing services to farmers

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, p g

Improvement of training (Art. 181 of Reg. 718/2007)p g ( g )

Assistance to improve occupational skills and competence of persons engaged in theand competence of persons engaged in the agricultural, food and forestry sectors

Support shall not be granted to courses of instruction or training which form part ofinstruction or training which form part of normal programmes or systems of education at secondary or higher level

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y g

Technical assistance (Art. 182 of Reg. 718/2007)( g )

Assistance for activities related to the preparation, monitoring, evaluation, information and control activities which are

f th i l t ti f th hnecessary for the implementation of the programme such as:– Monitoring Committee Meetings– Information and publicity campaigns

T l ti d i t t ti– Translation and interpretation– Visits and seminars– Activities related to the preparation of measures whose

i l t ti i f t l t timplementation is foreseen at a later stage– The ongoing evaluation of the programme– The establishment and operation of a national network

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SAPARD EXPERIENCE

CHOICE OF MEASURES IN SAPARD CHOICE OF MEASURES IN SAPARD COUNTRIESCOUNTRIESCOUNTRIESCOUNTRIES

(% of EU contribution as in the programmes 2000-2006)26

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11 12

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23* The number of IPARD measures was limited to the main priorities (from 16 measures under SAPARD to 9 under IPARD)

P I

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SAPARDSAPARD lessonslessonsfor IPARD (I)for IPARD (I)

Need to better focus IPARD measures to the specific objectives of this component by:Need to better focus IPARD measures to the specific objectives of this component by:

–– Stronger focus on the EU Stronger focus on the EU acquisacquis related issues e.g. environmental, quality and health related issues e.g. environmental, quality and health standards as well asstandards as well as

–– Concentrating the number of IPARD measures to the main priorities (from 16 measures Concentrating the number of IPARD measures to the main priorities (from 16 measures under SAPARD to 9 under IPARD).under SAPARD to 9 under IPARD).

Need to Need to improve the programmingimprove the programming exercise:exercise:–– Improve knowledge about the Agricultural and Rural situation of the country concerned, Improve knowledge about the Agricultural and Rural situation of the country concerned,

((sector analysessector analyses of main sectors to be supported under IPARD, requirement of the of main sectors to be supported under IPARD, requirement of the regulation, independent expertise/EU funds).regulation, independent expertise/EU funds).g , p p )g , p p )

–– Better targeting of investment measuresBetter targeting of investment measures•• identifying the “right beneficiaries”identifying the “right beneficiaries”•• and the weakest links of the production, processing and marketing chains and the weakest links of the production, processing and marketing chains •• Focus on standardsFocus on standards•• Companies that already meet Community standards are not eligible to be supported byCompanies that already meet Community standards are not eligible to be supported by•• Companies that already meet Community standards are not eligible to be supported by Companies that already meet Community standards are not eligible to be supported by

IPARD.IPARD.

Addressing the advisory services issues in advance.Addressing the advisory services issues in advance.

Add i th l dit i f th b i i f th iAdd i th l dit i f th b i i f th i

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Addressing the rural credit issues from the beginning of the exercise.Addressing the rural credit issues from the beginning of the exercise.

Thank you for your attention!Thank you for your attention!

Agnieszka.Rutkowska@ec.europa.eu

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