LOCAL DEVELOPMENT STRATEGY within the territory of the …deathstar.cybcom.net/~migbelovo/wp-content/uploads/2012/... · 2012-01-21 · the one with smallest population is Dolno Varshilo

European Agricultural Fund for Rural Development EUROPE INVESTING IN RURAL AREAS

LOCAL DEVELOPMENT STRATEGY within the territory of the municipalities of

Belovo, Septemvri and Velingrad

This strategic document was developed in the course of implementation of the project “Acquisition of skills and animating the potential local action groups within the territory of the municipalities of Belovo, Septemvri

and Velingrad”. By use of the organized forum for implementation of LEADER approach, the participants have established an action group, representing the interests of local community and have developed an overall

vision on the development of LAG Belovo, Septemvri and Velingrad.


Association „Local Action Group – Belovo, Septemvri and Velingrad” registered in

the Central Register for Non-profit Legal Entities under No.20100615010 page 2 of 50




List of terms, abbreviations and acronyms LDS Local Development Strategy RDP Rural Development Programme (2007–2013)

LEADER Liaisons Entre Actions de Développement de l’Économie Rurale i.e. Links Between Actions for the Development of the Rural Economy

LAG Local Action Group NSI National Statistical Institute ED Executive Director GM General Meeting MB Managing Board PMU-LAG LAG’s Project Management Unit PSC LAG’s Project Selection Committee ET Sole Trader (sole proprietor company) NPLEA Non-Profit Legal Entities Act CCA Community Centers Act NPLE Non-Profit Legal Entities HPP Hydro Power Plant PSP Pumped Storage Plant PA Paying Agency ASA Agency for Socioeconomic Analyses SADC Swiss Agency for Development and Cooperation TFA Tangible Fixed Assets MAF Ministry of Agriculture and Food MA Managing Authority PPA Public Procurement Act OSPP Ordinance for Small Public Procurement EU European Union GMP Good Manufacturing Practices HACCP Hazard Analysis and Critical Control Point SAT Structure of the Territory Act VAT Value Added Tax NICM National Institute of Cultural Monuments IACS Integrated Administration and Control System ICT Information and Communication Technologies LOD Labor Office Directorate CHH Cultural-historical heritage OP Operational Programme RD Regional development




TABLE OF CONTENTS

List of terms, abbreviations and acronyms ...........................................................................................3 I.Description of LAG .............................................................................................................................5 1. Municipalities/areas covered by LAG’s territory.........................................................................5 2. Map of LAG’s territory ..............................................................................................................5 3. Organizational structure of LAG.................................................................................................6 4. Management of LAG..................................................................................................................6 5. Decision making mechanism ......................................................................................................6 II. Strategy development process – methodology and approach...................................................8 1. Process description – approach and steps ....................................................................................8 2. Partners in strategy development ................................................................................................9 3. Consultants and facilitators.........................................................................................................9 III. Description of existing situation..............................................................................................11 1. Collected and assessed data on the territory ..............................................................................11 2. Descriptive analysis of the socio-economic situation.................................................................14 3. SWOT Analysis .......................................................................................................................16 IV. Objectives of the strategy ........................................................................................................17 1. Objectives of the strategy and priorities for development ..........................................................17 2. Coherence ................................................................................................................................17 3. Specific objectives....................................................................................................................18 4. Overall strategic framework......................................................................................................18 V. Description of interventions ....................................................................................................19 1. Measures and actions................................................................................................................19 2. Procedures for strategy implementation ....................................................................................37 3. Ensuring the balanced strategy implementation.........................................................................37 VI. Detailed financial plan.............................................................................................................38 1. Indicative allocation of funds....................................................................................................38 2. Financial rationale for budget ...................................................................................................40 VII. Monitoring and evaluation......................................................................................................41 1. Monitoring and evaluation framework ......................................................................................41 2. Evaluation by external experts ..................................................................................................47 3. Procedures for the Annual progress reports ...............................................................................47 4. Procedure for the strategy update ..............................................................................................47 VIII. Compliance with EU-horizontal policies.................................................................................48 1. Gender Equality and Non Discrimination..................................................................................48 2. Sustainable development (environmental protection) ................................................................48 3. Encouraging Job Creation and Competitiveness ........................................................................48 4. Complementarity with Structural Funds Programmes................................................................49




I. Description of LAG

1. Municipalities/areas covered by LAG’s territory1 (Annex 14.1 to LDS)

LAG’s territory encompasses three municipalities, namely Belovo, Septemvri and Velingrad (hereinafter referred to as LAG, territory and/or area). Geographically, the territory is located at the intersection of the Rila, Rhodopes and Sredna Gora mountains and Upper Thracian Valley. The average altitude is 1263 meters, the lowest point is 220 meters above sea level (Kovachevo Village, Septemvri Municipality) and the highest point is 2306 meters above sea level (Slavov peak, Belovo Municipality). The territory of three municipalities falls within three geo-morphological areas, which determine their relief. Srednogorie Mountain comprised of Sredna Gora Mountain and Rila-Rhodopes Massif, including Rila and Rhodopes mountains, contribute to the mountainous relief of the region and the Upper Tundzha subarea lying between the above two areas, is forming mainly lowland features. The total territory of the region is 1,498,791 km2, of which Belovo Municipality is 346 356 km2, Velingrad Municipality is 803 063 km2, and Septemvri Municipality is 349 372 km2. In administrative terms the LAG’s territory is situated in the South Central Planning Region of the country, in the southwest part of Pazardzhik District. Internal boundaries, except those of the three LAG’s members, are these with municipalities Lesichovo, Pazardzhik, Rakitovo and Batak. External boundaries: Sofia District (Kostenets Municipality), Blagoevgrad District (municipalities of Yakoruda, Belitsa, Bansko, Garmen and Satovcha) and Smolyan District (Dospat Municipality). The territory encompasses five towns Belovo, Velingrad, Sarnitsa, Septemvri and Vetren, and 42 villages. The locality with largest population is the town of Velingrad, 23,686 people, and the one with smallest population is Dolno Varshilo Village, Septemvri Municipality, with only 13 people. The territory has a total population of 78,199 people, and its population density is approximately 52 people/km2.

2. Map of LAG’s territory

1 Source: NSI 2010, Municipal development strategies 2007-2013 Belovo, Septemvri and Velingrad




3. Organizational structure of LAG (Annex 7.1 and 7.2 of general dossier)

- composition of LAG and governing body - composition and responsibilities; members:

General Meeting (GM) is the supreme governing body of the Association. It is composed of 41 members – 32 individuals and 9 legal entities, with domicile and registered address on the territory of the LAG. (Annex 7.1 of general dossier). The general powers of the GM are described in І.5. Decision making mechanism. The business partners are 11 (26,9%); non-governmental sector (NGOs and community centers) is represented by 6 organizations (14,6%); representatives of public sector are 16 (39 %); individuals are 8 (19,5%). The women are 19 (46,34 %), and young people up to 35 years of age are 12 (29,27 %). The rights and obligations of the members of the LAG are described in Art. 10 and Art. 11 of the Articles of Association of the LAG (Annex 2 of general dossier)

Managing Board (MB) is composed of 9 persons, members the Association. (Annex 7.2 of general dossier) In the MB 3 members are from the NGOs and community centers) is represented by 6 organizations (14,6%); representatives of public sector (33,33%) – two deputy mayors and one mayor. The remaining members of MB are six (66,67%) – two persons from each municipality. The represent: business sector (three sole traders (ET) – services and agricultural business), one from community centers sector and two individuals. The MB is elected by the GM for a 5-year term of office. The general powers of the MB are described in І.5. Decision making mechanism.

- organizational structure/chart: (Annex 14.2 to LDS)

4. Management of LAG - governing body: MB exercises the representation power of the LAG. The Chairperson of the MB is elected for a 5-year term of office. He/she organizes the preparation and holding of the meetings of the MB, performs a public representation of the Association and represents it until the appointment of the Executive Director (ED). For operative purposes, the representation power of the Association is assigned to the ED, who is reporting to and controlled by the MB and the GM. (Annex 2 of general dossier – Art. 33 of the Articles of Association of the LAG)

- description of the positions and requirements for the ED and personnel: Further to conducted competition procedure the MB appoints the ED under full-time labor contract. At the selection of the ED the following requirements will be met: completed higher education; minimum professional length of service 5 years; at least two years managerial experience; project implementation experience. The other members of operating team of the LAG are as follows:

- Assistant under full-time labor contract;

- 2 experts on implementation of the LDS under part-time labor contract;

- Accountant under full-time labor contract.

Additionally there will be hired experts under part-time contracts for the purposes of implementation of the LDS with functions relating to informing, consulting and monitoring.

- rights, obligations and liabilities of all persons involved in management process of the LAG (job descriptions) are described in Annex 21 of general dossier;

5. Decision making mechanism - procedures:

GM will be held at least once annually. It is convened by MB with invitation and specified agenda or upon request by 1/3 of the members. The decisions of the GM will be adopted by a majority of members attending the meeting, except for matters, specified in Art. 26, para. 1, item 1 and item 4 of the Articles of Association, will be adopted by majority of 2/3 of members present.




MB is convened and presided by the Chairperson at least every three months, and upon written request of 1/3 of the members of the MB. A meeting of the MB shall be valid, if attended by at least 2/3 of the members. MB takes decisions by ordinary majority of those present, except in cases under Art. 14, para. 2 and Art. 31, item 3 and item 6 of the NPLEA, where decisions are taken by a majority of all members. The powers of the governing bodies on implementation of the LDS are described in the Articles of Association (Annex 2 of general dossier). The strategic documents of the Association (LDS, annual budget and report) are developed consequently by the ED and the MB and are approved finally by the GM. The project selection process under the LDS will be managed by the MB, which appoints a Project Selection Committee (PSC). MB, PSC and Project Management Unit of the LAG (PMU-LAG) will report on the project selection campaign before the GM. In the Operating rules on implementation of LDS is provided for establishment of a Committee on monitoring and checks for implementation of the LDS, appointed by the MB. All procedures on decision making, related to the implementation of the LDS are described in detail in Annex 14.3 to LDS – Operating rules on implementation of LDS. These rules regulate the procedures for implementation of the LDS, conditions and procedures for applying, evaluation and approval of applications, monitoring and on-the-spot checks, assistance and informing the beneficiaries of the financial support, as well as the reporting to the РА. - participants: GM: Adopts, amends and supplements the Articles of Association; Elects and dismisses the members of the MB; Takes decisions on transformation and termination of the Association; Takes decision on membership in other organizations; Adopts the LDS and its budget; Adopts the budget and report on the activities of the Association; (Annex 2 of general dossier - Art. 26. (1) of the Articles of Association of the LAG) MB: Provides for the implementation of decisions of the GM; Admits new members; Elects from among its own members a Chairperson of the MB; Elects through competition and dismisses the ED; Elects and dismisses the PSC under the LDS; Takes final decisions on funding the projects under the LDS; Takes decisions on matters concerning the LDS and its budget and propose it for approval by the GM; Adopts organizational structure, rules and procedures for the functioning of the executive bodies of the Association, including on the implementation of the LDS; (Annex 2 of general dossier - Art. 32.(1) of the Articles of Association of the LAG) Chairperson of the MB: Convenes and presides the meetings of the MB; Represents the LAG until the appointment of the ED. (Annex 2 of general dossier - Art. 33 of the Articles of Association of the LAG)

Executive Director - ED: Manages the programming and financial activities of the LAG and represents it; Prepares and submit to the MB for approval the LDS and LAG’s budget; Incurs and approves current expenditure; Concludes agreements; Provides for the execution of the decisions of the MB; (Annex 2 of general dossier - Art. 34. (1) of the Articles of Association of the LAG




II. Strategy development process – methodology and approach

1. Process description – approach and steps In the process of defining the stakeholders were used various principles (consensus decisions, transparency in all activities and decisions, sensitivity to real problems of the localities), methods and approaches: - Used methods: discussions; information day, personal meetings, general information sessions, individual approach, motivating all stakeholders, proactive methods of training and informing, learning by doing, transfer of best practices. - As a principal work method was used the FORUM-LEADER approach. A model was used, being already developed under the ASA project (funded by SADC within the period 2005-2007). FORUM-LEADER is a series of public discussions, open to all citizens, and representing all stakeholders. The approach is based on conducting structured discussions in which stakeholders are represented at separate working tables. - There were widely used feedback forms, applied further for analysis development. - For the purposes of better identification and involvement of stakeholders was developed a Communication plan. Generally, the process has passed through 4 main stages: Preparatory stage (1st-2nd month) - established task groups, prepared informational meetings, media promotion, developed design for web site; Development of the LDS and information activities (3rd-8th month) – training sessions for potential members of the LAG and local leaders on LEADER approach; information days for activating participation of the population, first 3 sessions on FORUM-LEADER; information seminars to discuss issues on the LDS; published and distributed - leaflets, posters, brochures and two newsletters, designing of logo of the LAG. Establishment and registration of the LAG. Adoption of the LDS. Application submitted to the MAF (8th-14th month) - information seminars held to discuss the final draft of the LDS; 2 sessions held on FORUM-LEADER; adopted LDS; establishment of the LAG; application submitted by the LAG to the MAF. Strengthening of the LAG (11th-20th month) – further training for members of the LAG continue; information meetings continue to promote LDS; study visit for members of the LAG in ha EU member state with experience in the LEADER approach. Basic steps for development of the Local Development Strategy:

- Within the period 03-21.08.2009 there were held 10 working meetings on the entire territory of the LAG and established three task groups: in Belovo - 9 persons, in Septemvri - 5 persons and in Velingrad - 8 persons, with one moderator for each group assisting their work. These groups have carried out the principal work for the implementation of the method FORUM-LEADER, development of the LDS and establishments of the LAG;

- Within the period 24.08-01.09.2009 there were held three information meetings in total on the territory of the LAG, where were presented the activities and details of the process for developing of the LDS. The meetings were organized as separate "working tables". Attended by 224 persons, representatives of municipal administration, agriculture and education sectors, local businesses and members of local NGOs;

- Within the period 25.08-13.11.2009 there were held 4 training sessions with 40 participants for identification of potential members of the LAG. Students were members of the task groups and the "working tables";

- Within the period 10.09-15.12.2009 there were held 4 training sessions with 87 participants for community leaders;




- Within the period 07.09-16.11.2009 there were held 10 information days with 494 inhabitants from the territory of the LAG, where information was presented about the RDP and LEADER approach.

- Within the period 18.11.2009-31.03.2010 there were held 5 sessions on FORUM-LEADER approach. All participants were allocated into "working tables". At 1st session: there were accepted principles and rules of forum sessions, and SWOT analysis was developed for the territory of the LAG. At 2nd and 3rd sessions: there were defined objectives, priorities and measures of the LDS. At 4th session: LAG was established, adopted Articles of Association, Managing Board elected. At 5th session were discussed the organizational structure and functions of the LAG, some details of the strategy and its budget. All sessions were attended by 266 persons from the task groups, local government, businesses, NGOs, ethnic communities and the media. Between sessions were held workshops to summarize the results of the SWOT analysis, objectives, priorities and measures;

- Within the period 11.01-20.07.2010 there were held three informational seminars with 154 participants to inform the members of local community, not participated in FORUM-LEADER sessions on draft version of the LDS. During the same period there were held three informational seminars with 142 participants on the final version of the LDS. During the workshops there were used feedback forms for specific details of LDS.

In Annex 20 of general dossier – from 20.1 to 20.8 - are attached documents, evidencing the concurring process on matters of the LDS with all relevant stakeholders.

2. Partners in strategy development - Local government - the three municipalities provided their experts for participation in the task groups and in the "working tables"; they actively participated in the sessions on FORUM-LEADER approach, as with a provision of appropriate halls and facilities, so with various information produced in the process of carrying out the analysis and formulation of priorities. The three municipalities have designated coordinators for their participation in the process, who were main contact persons throughout the entire process and have ensured a continuous flow of information, used in different sections of the Strategy. - Business sector was represented differently in various parts of the territory and in various stages of the process. In Belovo actively participated representatives of ET Ivanka Petrova-44, by carrying out coordination with local agricultural and non-agricultural businesses. In Velingrad at the beginning of the process were involved the unions of the potato growers and hop growers. Subsequently, the process was joined by the Association of Hotel & Restaurant Keepers. In Septemvri Municipality actively participated the agribusiness, e.g. ET MARIRUS and farmers from the area, and representatives of the hotel and restaurant business, e.g. ET Elidere EOOD. Some of the representatives of the business sector were actively involved throughout the period and were elected as members of the MB. Non-government sector (community centers) and individuals - more active participation of NGO sector have demonstrated the representatives of Belovo and Velingrad. The Regional Development Agency, Velingrad was actively involved in all forum sessions and provided valuable information on various existing projects. Several community centers in Velingrad and Belovo were leading participants in the process through their representatives in the task groups.

3. Consultants and facilitators - As Experts on development of the LDS - Group II have participated Marina Manolcheva and Dimitar Rusinov. They were charged with activities: collecting and analyzing information, review of existing plans, existing strategies and statutory documents on the territory; description of the current status of the territory. Development of the first draft and final version of the LDS; informing the public on the LDS.




- As Expert on administrative structure of the territory - Group III has participated Dimitar Rusinov. He supported the process of establishment of the LAG and actively participated in training, organizational development and promotion of the LAG. - As Expert moderator - Group I has participated Luchko Makedonski. He prepared an analysis of stakeholders, and was in charge for communication with partners and participants; he participated in training, informational days and sessions, and persuaded and motivated the participants, by providing information on the current situation; - As Experts on preparation and conducting of training and informational sessions - Group IV have participated Docho Mihailov and Tsveta Petkova. Docho Mihailov prepared the design of training programs and was invaluable in preparing and conducting the sessions on FORUM-LEADER approach. Tsveta Petkova developed the Communication plan on the entire process and was involved in the training sessions.




III. Description of existing situation

1. Collected and assessed data on the territory

Natural and material resources

There are many natural and tourist resources with the potential for use on the territory of the LAG. Town of Velingrad is a major tourist center well-known for its mineral waters. This contributed to the construction of numerous hotels and tourist facilities in the town, benefiting from natural resources. In the remaining part of the Velingrad Municipality, and on the territory of the municipalities Belovo and Septemvri there are also mineral springs, which use is restricted and limited to outdated mineral baths, beaches, and mineral water bottling plants. Mountainous features of the region provide numerous natural places for recreation, sport and cultural activities. Residents of the area and its visitors can visit as the emerging tourism and recreation destinations, so the undeveloped ones. In general, the tourist infrastructure is underdeveloped, and mainly of low quality level structure and super structure and service level. The climate in the region is transitional continental in lowlands and mountainous on the eastern slopes of the Rila Mountain and higher parts of the Rhodopes Mountain. The winter months are characterized by relatively mild climate, early spring and late and warm autumn. Typical feature for the region around the town of Velingrad is the high average number of sunny days - 215 days of sunshine annually. The average annual temperature is 11.3°C, and annual rainfall is equal to about 550 mm/km2. The main soil types on the territory are maroon forest soils, maroon-podzolic forest soils, brown forest soils and mountain meadow soils. Meadow soil types are represented by alluvial, alluvial-meadow, deluvial-alluvial and deluvial meadow soils. These soil types have good natural fertility. As suitable crops for growing in the region are: cereals, technical crops, potatoes, hops and perennial crops (orchards and vineyards). The main part of the municipalities of Velingrad and Belovo is covered by forests, leaving only the Septemvri Municipality as the area with greater territory with arable land. The Septemvri Municipality has also the reputation of a vine-growing and wine-making region. The region is rich of water and water sources. Major catchment rivers for the region are Maritza River and its tributaries, Yadenitsa River and Chepinska River, as well as Dospatska River. Within and around the region are built numerous stepped cascades, small dams and reservoirs, which supply it with water. The real wealth of the region is represented by the mineral springs, concentrated mainly in the Velingrad Municipality and its number is smaller in the municipalities of Septemvri and Belovo. The total water areas within the territory cover an area of 32,880 decares. Despite the relatively high capacity of water resources in the region, they are not fully utilized due to the existing water supply network, which is incomplete, worn and non-compliant to current standards for reliability and safety. The territory is characterized by a wide variety of animal species. The natural fauna dispose of diverse species. Many of these species are recorded in the red books of endangered species because of its specificity or because of threat of extinction. Their preservation is of national, as well as of European and global importance. These include invertebrates, reptiles, birds, mammals and insects. The region has extremely rich vegetation. Available large mountain and forestry stock is precluding an essential part of the territory to be used for agriculture, which explains the high occurrence of wild plant species, including trees, shrubs, grasses, herbs and mushrooms. The region has a number of protected areas due to existing rare and unique flora. Despite of existing natural wealth of the territory it is not emphasized on the preservation of quality environment. The air is the only factor that is at or below the normal pollution rates, but even this is due to the lack of large enterprises and the mountainous and forest characteristics of the territory. Water and soils, with the exception of some protected and inaccessible areas are contaminated unprecedentedly. Because of the lack and/or uncompleted systems of water supply and sewerage, large quantities of polluted water and waste are disposed directly into rivers and/or soils. Sewerage networks and water areas have no wastewater treatment plants. In addition, the nature is deteriorated further due to lack of effective policies on waste and its disposal. There are numerous illegal landfills and new ones are constantly created. Municipal and state




authorities do not act effectively to close and impose sanction for such illegally created landfills. Such authorities fail to operate effectively at the control of existing landfills and the inspection is limited only to preliminary planned checks. It is observed a slow agitation of the control, where through control actions was sanctioned one of the main polluters in the region and forced to build its own landfill and to control more effectively their wastewater treatment plants. It is a good example, but it is insufficient to rectify the situation throughout the entire region.

Public and social data

In historical terms there is evidence of historical heritage even before the common era. Municipalities of Velingrad and Belovo were inhabited by the Thracian tribes Bessi and Satri, and the territory of Septemvri Municipality by Thracian tribe Odrisses. The region has witnessed many battles between the Romans, Thracians, Greeks, Bulgarians, Byzantines and Turks. Every nation has left a lasting cultural and historic impact on the region, thus contributing to the formation of contemporary society appearance. According to NSI data for year 2001, out of a total population of 83,663 people, as Bulgarians have identified themselves 69,634 people, as Turks – 6200, and as Roma - 5587 people. In terms of religion, according to NSI data for year 2001, as Christians have identified themselves 59,305 people, and as Muslims - 21,070. The main part of Muslim community, both Turkish and Roma are concentrated in Velingrad Municipality. In the region exists higher tolerance level between different sub-groups of society. In year 2008 from the territory had emigrated 911 persons and have died 1104 persons. For the same year have settled new 727 persons, while the number of live births is 855, which reduced natural population growth to -433 (-249 excluding migration). Data on births and deaths in 2009, respectively, are as follows: 898 and 1067 persons, which reduced natural population growth for the year (without taking into account the migration) to -169 persons. Regarding healthcare situation, the principal medical establishments are concentrated in towns and municipal centers. In the villages in population healthcare are engaged either visiting doctors, or physicians in multi-profile offices. Both options lead to reduced healthcare levels in rural areas due to lack of general or specialized medical care. To a reduced level of health and aging contribute also the outdated/dysfunctional medical equipment and low professional qualifications of the medical staff available. According to NSI data for the period 2008-2009 kindergartens in the region were 25 with total capacity of 2087 children. They have engaged a total staff of 182 persons and have served 94 children's groups with a total number of 2071 children. Schools in the region were 34 and included students from 1st to 13th grade, included those granting 2nd and 3rd vocational professional qualification. The cultural events in the region are organized on annual rotation basis and are associated mainly with the celebration of religious and national dates. Major events are "Municipal review of folk art" of Belovo municipality; Kukerstvo (a traditional Bulgarian custom) in villages around the town of Septemvri; festival “Velingrad Cultural Events” and “Balkan Festival of classical guitar”. The key supporters of culture and "living" heritage are the community centers. They have formed and maintained a number of different performing groups and amateur initiatives. Some are oriented to local folklore, religious chants, art of declamation, customized folklore, classical and modern dances, theater groups, literary clubs, foreign languages, piano, etc. In the region there are museums such as ancient houses, public buildings and religious monuments of historical importance. In Velingrad there are a historical museum and art gallery. The sports activities in the region have a relatively good level of development. There are numerous sports facilities, sports clubs and societies. However, the major part of the facilities are in poor condition and unsuitable for the competition events. There is a need of major repair works and updating of both basic and supporting facilities. It is also necessary to diversify and increase the number of sports facilities. Emphasis should be placed on attracting the public to sports activities. Such attraction is necessary to be made in two directions, participation in sports activities and to attract sponsorship to sports clubs and facilities. Achievement of results in both directions might be supported by attracting sporting events and visits of professional sports clubs in existing sports facilities.




Business and technical data

In general the territory is poor of energy resources and ore reserves. Extracted are mainly ore and non-ore materials for the construction industry. In the area around the town of Vetren there exist undeveloped and extremely rare deposits of green gabbro. Velingrad Municipality is a major supplier of rosin for the country. Asbestos deposits on the territory represent 32%, and those of marble - 10% of total national deposits. According to NSI data for year 2007 in the region exist 277 industrial companies, which contribute approximately 5% to the net earnings in Pazardzhik District. The main areas of the industrial sector in the region are production of electricity, timber and wood-processing industry and food industry. Very interesting are sectors: agriculture, hunting and forestry, production of food products, beverages and tobacco products, construction, hotels and restaurants, real estate transactions, renting activities and business services. Despite the confidentiality of some data, the following approximate percentages give an impression of active business activity with great potential for development. Out of total 1,602 companies, registered on the territory of the LAG, 347 companies, or 21.66% are involved in the above-mentioned areas. The hospitality sector (hotels & restaurants) is interesting with 150 registered companies, provided that about 50% of them are in Velingrad area. Overall for the region, this sector recorded the largest investment in TFA with 13.31% and the five sectors mentioned above summarize a total of 27.61% out of the total investment within the LAG’s territory. In addition, these sectors contributed 14.93% to the total production, which represents 12.21% of total earnings. These figures considered from another viewpoint show that the percentage of operating earnings is equal to 148.25% of finished production, or 48.25% profit after its sale. Ultimately, the profit of companies (including investment in TFA) is equal to BGN 166,104,000, or 33.37% of total earnings. Regarding agricultural sector, the main part of municipalities of Velingrad and Belovo is occupied by forests, leaving 26.1% for Belovo and 13.3% for Velingrad as arable land stock. Within the Septemvri Municipality, on the other hand, the territory is mostly flat and of field type, provided that the arable land area covers 171.131 decares. The main part of the area of the LAG, located in the municipalities of Velingrad and Belovo is used as common land and pastures and permanent crops, while the territory located in Septemvri Municipality is mainly used for growing of cereals, green fodder, technical crops (tobacco) and vegetable crops. The steps were undertaken recently for recovering and studies were conducted to establish new perennials, which will create a favorable environment in the direction of vine-growing, especially in consideration of the reputation of the area as a vine-growing and wine-making region. Cattle-breeding is favored to evolve further, as the mountainous area provides numerous natural pastures. However, cattle-breeding in the region is not sufficiently developed. Many of the farms, approximately 90% breed small number of animals, e.g. 2-3 cows and/or 4-5 sheep. Their production is mainly for personal use and the remainder is sold to the official milk-purchasing companies or on unregulated markets. As a whole it may be considered that the agricultural sector on the territory is not optimally developed. This is caused by many factors adversely affecting the sector. The transition to market economy and the return of land led to fragmentation of the land, being granted to the legal owners. Many of them are not experienced and/or unwilling/unable to dedicate on agriculture activities, which led to neglect of the plantations. On the other hand, public and private institutions in charge of irrigation systems to cope with their maintenance and this leads to inefficient and/or impossible use of irrigation systems. Also, many small farmers have unfruitful and unpleasant experience from their contacts with existing cooperatives. As a consequence, they refuse cooperation with them. Therefore, the farmers are unable to buy and use modern equipment that would reduce their costs and would contribute to increased income from their production. In addition, after the accession of Bulgaria to the EU are applied quality standards of the union, which are unfamiliar and burdensome for small and medium-sized farms. Thus, the level of production declined and led to the orientation of most farms to the grey sector of economy. The principal wealth of the region with focus on tourism is represented by the mineral springs. Many of the springs throughout the entire territory are concentrated in the town of Velingrad, allowing the town to stand out as "the spa capital of Bulgaria", and the tourism is a key business sector. Unfortunately, the remaining LAG’s territory is not focused on the development of tourism. However, on the entire LAG’s territory are available natural resources, suitable for development of different types of tourism. The




region is rich of natural resources, but unfortunately they are not used optimally and with business ingenuity. There is no supporting infrastructure (shelters, picnic areas, observation platforms, etc.), which may create amenities and opportunities for development of the potential of tourism. On the other hand, the unique features of the overall cultural environment, including the local cultural-historical heritage, as well as any traditional social events and festivals, ethnographic and folklore values, customs, beliefs, giving an overall picture of the local way of life, would further contribute to development of an exclusive tourism product. However, the existing tourism product, with the exception the town of Velingrad, is still undeveloped, highly fragmented, and with scarce provision of information and advertising. Transport infrastructure in the region is relatively well developed. The territory is crossed by the Eurasian transport corridor, linking Western Europe with the Middle East and Central Asia, Trakia international highway, linking Western Europe and Istanbul, international railroad, linking Central Europe with Asia. From train station Septemvri starts the narrow-gauge railroad, passing through Velingrad Municipality and connecting Trakia with the Rhodopes, Rila and Pirin. The main centers of the municipalities are located at a 100-km distance from both main airports – Vrazhdebna, Sofia and Krumovo, Plovdiv, and airport Dolna Banya for light aircraft. Unfortunately, the condition of great part of road infrastructure is bad and needs major repairs and reconstruction. Road network density is 48.7/100, and as length is equal to 1193.3 km. Within the entire road network the largest percentage (73.05%) have the roads of class 3 and class 4, which confirms again the need for road reconstruction and repair works in the region. The development of communication network in the region is relatively good. The telephone lines cover almost completely the population of the region. Mobile services cover a major percentage of the population, and representatives of different companies have own centers in major towns. It is observed an increase in the percentage of the population using computers and internet services. The providers of internet services have representative offices in major towns. There are also representations of the cable and other TV providers in municipality centers and larger localities. Postal and courier services are also relatively well developed and are represented by public and private organizations. The region is well provisioned in terms of energy production and distribution. HPP/PSP power plant located on its territory is the largest in the country. In general, the power network is relatively well developed with a need for further development and coverage of the entire region. Infrastructure is outdated and needs major repairs and modernization. Gasification of the region is low developed, and gasified sites and facilities may be found only in larger towns of the region. The water supply network in the region has a relatively good coverage, but still it does not cover the whole territory of the localities. In addition, a large part of the network is obsolete, and is a source of hazards to public health. Outdated network is a main reason for huge losses of potable water. This leads to an increased rate of failures, contributing to the inability to create quality infrastructure due to frequent "patches" of the network. The sewerage system is incomplete or missing on large part of the territory. With the exception of a minimum number existing installations, any water treatment plants are practically missing on the territory. This results in extremely high pollution levels of water, soils and air, and existence of health hazards not only for residents and visitors of the region but also for wild and domestic animals and crop plants. The situation is similar in the area of waste management. It is observed the lack of established ecological culture and insufficient control on disposal of waste at unregulated sites and creation of illegal landfills. In addition, no adequate control is exercised on the regulated landfills and waste collection sites. There is a real need for the creation of public opinion and position on environmental issues concerning the municipalities, adequate regulation and control of polluters by the authorities, and in addition the development and implementation of actions for the creation of ecological culture of the population.

2. Descriptive analysis of the socio-economic situation On basis of above-mentioned data and facts, in this section will be made a more in-depth analysis of the general socio-economic situation. From this analysis will be drawn the conclusions based on presented data, which would serve as precondition for shaping the objectives of this strategy.




On basis of the analysis of data on population of the region a forecast may be developed for its increase and rejuvenation. This is evidenced by some slight trends for increasing the figures of live births and the number of settled persons on the territory. These numbers contribute to the increase of natural growth from -996 to -433 within the period from year 2004 to year 2008. Here, the migration factor can be explained by the demand for training and self-fulfillment in larger centers. It may be assumed, therefore, that by improving working conditions and quality of life, this factor could be reduced. However, taking into consideration the negative trend in the employment level at national level, caused by the occurred financial crisis it may be observed that here, and throughout the country the unemployment level has increased. According to official data of the Employment Office for January 2010, average unemployment rate in the region is 17.69%, and the highest level was in Velingrad with 26.1%, and 12.5% in Belovo and 14.46% in Septemvri, respectively. Unfortunately, many of affected persons are either without the necessary qualifications, or are not flexible enough to work in another field of employment. On the other hand, regional differences in working conditions and wages stimulate further migration out of small communities. In recent years a trend is observed of increase of employment in the private sector and enhance of entrepreneurship, where many employed and unemployed persons become self-employed in different sectors of the economy. In this regard an advantage has the agricultural sector, where many entrepreneurs start and develop family farms. This may be justified by the steps undertaken recently for recovering of the sector and studies that were conducted for establishment of new perennial crops, which will create a favorable environment in the direction of vine-growing, especially in consideration of the reputation of the area as a vine-growing and wine-making region. On the other hand, mainly due to the mountainous areas of the LAG on the territory of Belovo and Velingrad and their use as common lands and pastures, there would be a reasonable development of the cattle-breeding, while the territory of the LAG in the common land of Septemvri would be favorable for agricultural development, with a primary focus on restoring the reputation of the area as a vine-growing and wine-making region. However, the possible development of the region as agricultural one would be possible only with huge investments and establishment of cooperative farms. Creation of associations would allow greater investments in modern equipment, and further reduction the cost of processing the land and crops, and obtaining products of higher quality and quantity, and hence higher earnings realized from the sale of such products. Thus it would be possible and cover the quality requirements of the EU. Despite these arguments, success of such associations is difficult or impossible to predict because of the negative experience of previous similar farmer unions and associations. A difficulty arises also from the existence of numerous small land parcels of owners, who have no experience in farming or re no longer engaged in farming. Many of these owners have moved from rural to urban areas of the country. Another negative factor for the development mainly of agriculture is the poor quality of irrigation systems in the region. The vast majority of elements of irrigation systems were stolen, and the remaining systems are maintained rarely or not at all. On the other hand, family farms provide a possible perspective for development of the region as agricultural one, with eventual emphasis on environmentally friendly products. This will increase significantly the quality of farm products and the popularity of the area as an ecologically clean region. Increased attractiveness of the region will support also the development of tourism. As shown above, in addition to the town of Velingrad, potential for development of tourism exists throughout the entire territory, covered by the LAG. The numerous mineral springs and the opportunities for balneology tourism contribute further to the overall attractiveness of the region. In addition to the potential of balneology and spa tourism, the region disposes of exceptional natural features and resources and cultural and historical heritage. Generally, this territory offers unique opportunities for development of therapeutic and recreational, ecological, rural, business and congress, sports, fishing and hunting, event-based, adventure, religious, cultural and mountain tourism. Due to its unique natural resources the region can easily develop a sustainable tourism product, where attention to be focused on small and medium-sized businesses/farms, making region specific products and offering it both to the tourist facilities (hotels, restaurants and entertainment sites) and directly to the visitors of the region. Similar conclusions may be drawn also on basis of data, provided in the next section - SWOT analysis of the territory of the LAG. SWOT analysis also presents the views of people from the region as its base was discussed in detail at the conducted forum sessions.




3. SWOT Analysis

strengths and weaknesses, opportunities and threats and analysis of issues The analysis (See Annex 14.4 to LDS - SWOT Analysis) was prepared jointly with the participants in the process for establishment of the LAG and planning of this development strategy. On basis of the analysis were identified some basic factors that were included in the objective and priorities of the strategy. In the course of joint work during the forum sessions and working meetings the opportunities for development of the territory were addressed. After specifying such opportunities the participants outlined some guidelines for development, such as partial improvement of favorable basic and social infrastructure, recovery and development of agriculture by emphasizing on environmentally friendly and specific local agricultural and food products, and tourism development through emphasis on alternative forms of tourism and creation of sustainable tourism product. The achievement of real benefits from the opportunities will require appropriate use of the strengths of the region. By taking advantage of alternative forms of funding (through projects, sponsorship stimuli, as well as by implementing this strategy) will be aimed at preservation, stimulation and optimum use of such advantages as: good geographical location, favorable natural features, fertile soils, unique flora and fauna, rich cultural-historical heritage and traditions. By the implementation of the strategy will be aimed at maximum use of these advantages to achieve a qualitative result in the development of basic infrastructure, expansion of tourism product of the region, recovery of ecologically pure areas and region specific products, restoration and development of cultural and natural rural heritage. In realizing the opportunities through optimal use of the strengths it is considered the reduction of the potential of the threats. For example, global and regional events, global warming, demographic downturn, social downfall, economic crisis, lack of stimuli for production and agriculture, further deterioration of the infrastructure are taken into consideration for the purposes of minimization of its effects. By taking advantage of the strengths, such as: conditions for development of agriculture, conditions for development of tourism and human resources, will be implemented such opportunities as: improvement of state-funded infrastructure, subsidizing agriculture, development of tourism, better communication and partnership; funding, and this will used further for achievement of improved socio-economic environment in the region and respective minimization of the threats for economic crisis, lack of stimuli for production and agriculture, demographic downturn and social downfall. As a real threat to the realization of the opportunities for development are considered the weaknesses of the territory. In this specific case, by implementation of the LDS and careful use of the strengths and utilization of opportunities it is intended exactly to be addressed such weaknesses as insufficient funding, outdated infrastructure, low education and awareness levels, inadequate maintenance of historical and cultural monuments, limited development of the tourism product and tourism, lack of destination marketing. Through alternative funding and stimuli for business development, communication between different business entities, agriculture, tourism, information and education, and improving infrastructure it will not only be reduced the weaknesses, but also minimized its real impact on the threats. The SWOT analysis, as well as collected, evaluated and analyzed data for the territory, have established a clear strategic framework for development of the territory. Its objectives and priorities are specified in detail in the next section.




IV. Objectives of the strategy For the purposes of development of vision and objectives of the strategic framework, the above described data and analyses were extensively used. In addition, it was used the information gathered from meetings with local residents, businesses and representatives of local administration and their ideas on the development of the region. All above has contributed to the creation of the desired vision for the region, and to achieve it two main priorities were identified with respective objectives and sub-objectives. By this approach we have succeeded to develop an overall hierarchy of objectives that supports the main vision for the development of the LAG Belovo, Septemvri and Velingrad.

1. Objectives of the strategy and priorities for development Overall objective of the territory: Attractive place for life and tourism due to sustainable economic development, integrating diverse tourism product with specific local agricultural products. For achievement of the objective were determined two main priorities for development: Priority 1: Creating new job opportunities through expansion of tourism coverage area from Velingrad towards other two municipalities, based on tourism product diversification and integration of agricultural, agroecological and non-agricultural business activities thereinto. (Abbreviated description: Expanded tourism area with integrated rural tourism) Priority 2: Development of favorable basic and social infrastructure contributing to expansion of tourism coverage area within the territory and integration of agriculture and other business activities thereinto. (Abbreviated description: Favorable basic and social infrastructure in support of integrated rural tourism) By implementation of the priorities will be achieved an optimum use of the strengths of the territory and maximum utilization of its opportunities. By implementation of the priorities will be supported not only the development in terms of agriculture and tourism, but the overall economic, cultural and social development of the region. As a strategic document comprising the territory of the LAG Belovo, Septemvri and Velingrad, this strategy may not exist in isolation, but is to be consistent, as per visions and priorities, with the existing municipal and national development plans. There were considered, therefore, the main strategic plans related to the development of the territory and this strategy was developed in line with its development priorities for the region.

2. Coherence with objectives in other planning and strategic documents – local, regional and national In the course of development of objectives and priorities of the LDS for the territory were reviewed in-depth the existing relevant documents at local, regional and national level. The LDS supplements and develops further the objectives and priorities, described in Municipal development plans of the three municipalities over the period 2007-2013. In addition, the LDS is in compliance with some local documents, such as: Strategy for development of new jobs in Belovo Municipality – June 2007; Strategy for development of sustainable tourism in Velingrad Municipality and Velingrad tourist region – August 2006. The LDS for the territory is in a close relation with the Development Strategy of Pazardzhik District (2005-2015). The LDS for the territory is in full compliance with the National Strategy Plan for Rural Development (2007-2013) and the Rural Development Programme (2007-2013). In Annex 14.5 to LDS is shown in simplified form the coherence of the LDS with objectives in other strategic documents.




3. Specific objectives For achievement of the overall objective and implementation of the priorities some specific areas of intervention will be needed. Through obtaining of results specified thereunder it will be reached the desired positive changes and achieved the priorities and desired vision for the region. In this section these specific objectives are presented and measures are listed, which may be used further when applying for financial support. The specific measures are further detailed in Chapter V. Description of interventions. To priority 1: Expanded tourism area with integrated rural tourism Objective 1: Expansion of tourism coverage area from Velingrad towards other two municipalities and tourism product diversification Sub-objective 1: Development of tourism within peripheral area of Velingrad Municipality and in

municipalities of Belovo and Septemvri. Measures: 311, 312, 313

Sub-objective 2: Development of alternative tourism aiming at diversifying the SPA product within the entire territory - development of wine tourism; bicycle tourism; eco-trails;

Measures: 311, 312, 313 Objective 2: Development of competitive and ecological agriculture, forestry and food processing industry through the integration of above activities with tourism. Sub-objective 1: Reinstatement and further development of environmentally sound and specific local

agricultural and food products and its integration in attractive tourism products. Measures: 121, 123

Sub-objective 2: Development of forestry sector through its integration with tourism and in compliance with environmental protection requirements.

Measure: 226 To priority 2: Favorable basic and social infrastructure in support of integrated rural tourism Sub-objective 1: Development of basic infrastructure in support of integrated rural tourism development

and expansion of tourism coverage area. Measures: 321, 322

Sub-objective 2: Development of services related with the use of communication and information technologies, social and cultural infrastructure in support of integrated rural tourism development and expansion of tourism coverage area.

Measures: 321, 322 Sub-objective 3: Revival and further development of cultural and natural rural heritage and its integration

with rural tourism. Measure: 323

4. Overall strategic framework See Annex 14.6 to LDS - Hierarchy of Objectives




V. Description of interventions

1. Measures and actions

Measure code 121

Description of measure Modernization of agricultural holdings

Description of objectives

To improve the competitiveness of agriculture on the territory of the LAG Belovo, Septemvri, Velingrad, through restructuring and development of existing plants and facilities in agricultural holdings and encouraging introduction of new technical solutions.

Scope of measure

According to Art. 4 of the Regulation No. 8/03.04.2008 of the MAF. The measure is open for application in all sectors, included in Annex І to the Treaty establishing the EC excluding the Tobacco sector. Geographical scope of measure – entire territory of the LAG.

Eligible applicants

Agricultural producers, organizations of agricultural producers. Full compliance with all requirements under Art. 13 of the Regulation No. 8/03.04.2008 of the MAF. Project beneficiaries must have a permanent address (for individuals), and a registered address (for legal entities) on the territory of the LAG.

Eligible actions

According to Art. 3 of the Regulation No. 8/03.04.2008 of the MAF will be eligible only projects, which activities are implemented on the territory of the LAG and are related to production, preservation or processing of own agricultural products only, as well as for preparation of such products for sale. - Introduction of new products, processes and technologies and improvement of existing production tangible and/or intangible assets, and/or - Improvement of vertical cooperation with producers and processors of agricultural products, and/or - Protection of the environment, including by reduction of harmful emissions and waste generation, and/or - Increase of use of renewable natural resources and improvement of efficiency of raw materials used in production, and/or - Improvement of working conditions, and/or - Improvement of hygiene, veterinary, phytosanitary, environmental and other production requirements, and/or - Improvement of quality of agricultural products produced, and/or - Improvement of opportunities for production, processing and marketing of organic agricultural products.

Eligible expenditure

Eligible for financial support are all costs under Art. 26 of the Regulation No. 8/03.04.2008 of the MAF. Construction or modernization of buildings or other immovable properties, used for agricultural production or for sales of agricultural products. Purchasing and/or installation of new machinery, facilities and equipment, needed for improvement of agricultural production process, including for environmental protection, preservation and preparation for sale of agricultural products of the holdings. Establishment and/or re-planting of new crops. Purchasing of land, needed for construction, modernization of buildings, premises and other immovable assets, intended for agricultural activities and/or for establishment or re-planting of new crops except for establishment/re-planting of wine vineyards. Purchasing of specialized agricultural transport vehicles. Investments in irrigation facilities /except for vine-growing/. Introduction of management systems in the agricultural holdings. Implementation of good manufacturing practices (GMP) in the agricultural holdings. General costs related to the investment project, such as costs for feasibility studies, charges, fees of architects, engineers and consultants, technical and economic evaluations and analyses, marketing strategies, development of business plan, acquisition of know-how, patents and licenses, needed for




preparation and implementation of project’s activities. Purchasing of software. Ineligible expenditure

Ineligible expenditure is considered those, listed according to Art. 12 and Art. 12 а of the Regulation No. 23/18.12.2009 of the MAF and according to Art. 27 of the Regulation No. 8/03.04.2008 of the MAF. Construction and modernization of infrastructure and purchasing of equipment for hunting, rock climbing and golf; investments in sector fishery and aquacultures and gambling; purchasing of second hand machinery, equipment and facilities; interest, fines and penalties; purchasing of real estate; routine maintenance of assets, subject to investment support; in-kind contribution; investments, relating to ordinary substitution; costs related to leasing agreement, such as profit for leasing company, costs under interest for refinancing; operating costs; costs, incurred prior to the date of signing of the grant agreement for financial support, with the exception of general costs under the measures for investment activities; expenditure for activities, financially supported under other project or programs of the European Union (EU); customs duties, excise duties, fees; taxes, with the exception of non-recoverable Value Added Tax; costs, paid in cash, with the exception of costs for fees in the preparation of the projects and costs under insurance premiums; studies relating to development of new products, processes and technologies; delivery and/or service, which value exceeds the amount of BGN equivalent of EUR 15 000, for which the applicant failed to receive at least three independent quotations; retail trade; purchasing of rights to produce agricultural products; purchasing of animals, annual crops and its planting; purchasing of new machinery and equipment, including computer software at price exceeding its market value; costs for certification under the HACCP (Hazard Analysis and Critical Control Point); costs related to preparation of business plan, if the applicant is approved for financial support under measures “Setting up of young farmers” or “Supporting of semi-subsistence farms undergoing restructuring” of the RDP and together with the approved project under these measures has submitted a business plan, prepared by National Agricultural Advisory Service; fines and penalties.

Financial parameters for projects

Minimum amount of total eligible expenditure per project is BGN 5 000 Maximum amount of total eligible expenditure per project is BGN 100 000

Amount of financial support (in % for different beneficiaries)

- 60 % of total eligible expenditure for young farmers from villages, located in mountainous and less-favored areas. - 50 % of total eligible expenditure for young farmers from other localities on the territory. - 50 % of total eligible expenditure for young farmers from villages, not located in mountainous and less-favored areas. - 40 % of total eligible expenditure for agricultural producers from other localities on the territory. - For investments related to water saving technologies, milk production and energy efficiency – increase by 10 %. - Increase by 10 % for: Investments for implementation of Council Directive 91/676/ЕЕС, Investments related to milk production, Investments in buildings and equipment, needed for the purposes of improvement of energy efficiency, Investments related to the production of biogas, Investments related to the production of electricity or heat energy, Establishment and/or re-planting of fast growing bushes and trees, used for bio-energy production; Investments in water saving technologies at the applicant’s own agricultural holding, Investments on conversion to organic agricultural production.

Project selection criteria

Under this measure priority will be given to supporting the development of small, sustainable farms with own local products, which are to be integrated in overall tourism product. See Annex No. 14.7 to LDS

Measure code 123

Description of measure Adding value to agricultural and forestry products





1. Improvement of overall performance, business efficiency and competitiveness of enterprises from food processing industry and forestry sector through: a) reduction of production costs; b) introduction of new products, processes and technologies ; c) improvement of quality and food safety and its traceability; 2. Achievement of compliance with Community standards; 3. Improvement of environmental protection.

Scope of measure

Financial support is granted for undertaking of investments according to Art. 3 of the Regulation No. 18/26.06.2008 of the MAF. The products from sectors eligible for financial support, being applied for the purposes of processing and/or marketing, must be described in Annex No. 1 under Art. 32 of the Treaty establishing the EC. Geographical scope of measure – entire territory of the LAG.

Eligible applicants

According to Art. 11 of the Regulation No. 18/26.06.2008 of the MAF. Sole traders (sole proprietor companies) or legal entities, registered under the Commerce Act or Cooperatives Act, which are micro, small- and medium-sized or intermediate enterprises. Project beneficiaries must have a permanent address (for individuals), and a registered address (for legal entities) on the territory of the LAG.

Eligible actions

According to Art. 23 of the Regulation No. 18/26.06.2008 of the MAF. Eligible will be only projects, which activities are implemented on the territory of the LAG and are related to: implementation of new and/or modernization of existing production facilities and improvement of its use, and/or introduction of new products, processes and technologies, and/or reduction of production costs in the manufacturing process, and/or repairs and modernization of processing enterprises, processing products listed in Annex 1 of the EC Treaty. Marketing and promotion of the region as a producer of agricultural products, creation of common trade marks for specific local products, etc. Construction, modernization, including of laboratory equipment, property of the applicant, located on the territory of the enterprise and needed in the manufacturing process. Improvement of opportunities for production of organic foods through processing of primary agricultural organic products.


According to Art. 23 of the Regulation No. 18/26.06.2008 of the MAF. Construction and/or modernization of buildings and other immovable assets, related to production, processing and/or marketing; purchasing and installation of new machinery and equipment needed for the improvement of manufacturing process and marketing; purchasing of specialized transport vehicles, related to improvement of the production, procurement of raw materials and sales of the products; construction/modernization of laboratories, property of the applicant, tangible investments for achieving compliance with newly accepted standards of the European Community; tangible investments for achieving compliance with effective standards of the European Community for enterprises with transition period in sectors "milk and dairy products" and "meat and meat products"; intangible investments for achieving compliance with internationally accepted standards; purchasing of software; general costs related to the investment project, such as costs for feasibility studies, charges, fees of architects, engineers and consultants, technical and economic evaluations and analyses, marketing strategies, development of business plan, acquisition of know-how, patents and licenses, needed for preparation and implementation of project’s activities.

Ineligible expenditure

Ineligible expenditure is considered those, listed according to Art. 12 and Art. 12 а of the Regulation No. 23/18.12.2009 of the MAF and according to Art. 24 of the Regulation No. 18/26.06.2008 of the MAF. Construction and modernization of infrastructure and purchasing of equipment for hunting, rock climbing and golf; investments in sector fishery and aquacultures and gambling; purchasing of second hand machinery, equipment and facilities; interest, fines and penalties; purchasing of real estate; routine maintenance of assets, subject to investment support; in-kind contribution; investments, relating to ordinary substitution; costs related to leasing agreement, such as profit for leasing company, costs under interest for refinancing;




operating and insurance costs; costs, incurred prior to the date of signing of the grant agreement for financial support, with the exception of general costs under the measures for investment activities; expenditure for activities, financially supported under other project or programs of the European Union (EU); customs duties, excise duties, fees; taxes, with the exception of non-recoverable Value Added Tax; costs, paid in cash, with the exception of costs for fees in the preparation of the projects and costs under insurance premiums; studies relating to development of new products, processes and technologies; delivery and/or service, which value exceeds the amount of BGN equivalent of EUR 15 000, for which the applicant failed to receive at least three independent quotations; retail trade; purchasing of rights to produce agricultural products; purchasing of animals, annual crops and its planting; purchasing of new machinery and equipment, including computer software at price exceeding its market value; costs for certification under the HACCP (Hazard Analysis and Critical Control Point) and under other internationally recognized standards; costs related to preparation of business plan, if the applicant is approved for financial support under measures “Setting up of young farmers” or “Supporting of semi-subsistence farms undergoing restructuring” of the RDP and together with the approved project under these measures has submitted a business plan, prepared by National Agricultural Advisory Service; fines and penalties. Not eligible as independent project are the following activities: for demolition of old buildings and production facilities; for intangible investments for achievement of compliance with internationally recognized standards; including only marketing of product/products, with the exception of cases where the applicant is a market of producers and/or these products are obtain in result of processing, made by the applicant.




Up to 50% of the value of total eligible expenditure for micro, small- and medium-sized enterprises and up to 25 % for intermediate enterprises. - Increase by 10 % for: Investments in buildings and equipment, needed for the purposes of improvement of energy efficiency, Investments in buildings and equipment for production of bio-energy in case of processing of products (raw materials), included in Annex I of the Treaty establishing the EC, Investments in buildings and equipment for production of energy from other renewable energy sources for own energy needs of the processing enterprise, Investments in buildings and equipment for wastewater treatment, Investments related to improvement of processing and marketing of milk and dairy products.


Under this measure priority will be given to supporting the project proposals for processing of specific local products, which are to be integrated in overall tourism product. See Annex No. 14.7 to LDS

State aid In case of processing and marketing of forestry products and/or processing of products, included in Annex І of the Treaty establishing the EC to products, not included in Annex I, the financial support will be granted according to the conditions and rules of the Commission Regulation (ЕС) 1998/2006, regulating the minimum financial support (de minimis rule). Maximum amount of the non-refundable financial support for a beneficiary is EUR 200 000. A beneficiary may not receive a financial support (European and/or state budget funds), exceeding the amount of EUR 200 000 within a three-year period.

Measure code 226

Description of measure Restoring forestry potential and introducing prevention actions

Objectives of measure

Introduction and improvement prevention actions for diminishing the threats of forest fires.

Scope of measure

Prevention actions against fires in forests and lands from forestry stock, notwithstanding its ownership, classified as areas with medium risk of forest fires. Geographical scope of measure




– entire territory of the LAG2. Eligible applicants

According to Art. 13 и Art. 14 of the Regulation No. 20/07.07.2008 of the MAF. 1. Individuals, sole traders (sole proprietor companies) and legal entities, owners of forests and lands of forestry stock on the territory of the LAG; 2. The three municipalities in relation to their own forests and lands of forestry stock; 3. State forest holdings (SFH), State hunting holdings (SHH), national parks and scientific research forest holdings, managing forests and lands of state forestry stock on the territory of the LAG; Project beneficiaries must have a permanent address (for individuals), and a registered address (for sole proprietors and legal entities) on the territory of the LAG.

Eligible actions

Eligible will be only projects, which activities are implemented on the territory of the LAG and are related to: purchasing of equipment for anti-fire depots and protection facilities, according to the Regulation No. 30 on conditions and procedure for carrying out of anti-fire activities in the forestry stock and protection of forests against fires; Construction and improvement of fixed fire monitoring points, purchasing of monitoring facilities and communication equipment.


According to Art. 17 of the Regulation No. 20/07.07.2008 of the MAF: - Costs for construction and improvement of fixed fire monitoring points, purchasing of monitoring facilities and communication equipment; purchasing of equipment for fire-fighting groups; - Expenditure actually incurred and paid for goods/services within the period of performance of the activity.


Ineligible expenditure is considered those, listed according to Art. 12 and Art. 12 а of the Regulation No. 23/18.12.2009 of the MAF and according to Art. 18 of the Regulation No. 20/07.07.2008 of the MAF. Purchasing of second hand equipment, machinery and facilities; purchasing of land and buildings; Value Added Tax (VAT), which is subject to refund; leasing; operating costs, including costs for maintenance, leases, banking fees; costs for guarantees, repayment and refinancing of interest; in-kind contribution; delivery and/or service, which value exceeds the amount of BGN equivalent of EUR 15 000, for which the applicant is not an assignor within the meaning of PPA and OSPP, and has failed at least three independent quotations; purchasing of new machinery and equipment at a price, exceeding its market value; investments, representing an “ordinary substitution”; payments in cash; customs duties, excise duties, fees; purchasing of real estate; routine maintenance of assets, subject to investment support; in-kind contribution; expenditure for activities, financially supported under other project or programs of the European Union (EU); fines and penalties.



Amount of financial support (in %)

The financial support is in amount of 100 % of the approved expenditure. Art. 7, para. 4 and para. 5 of the Regulation 20/07.07.2008


Annex No. 14.7 to LDS

Measure code 311

Description of measure Diversification into non-agricultural activities

Description of Promoting the development of integrated tourism on the territory. Promoting the diversification 2 The entire territory /all three municipalities/ is within the list of areas with medium risk of forest fires.




objectives into non-agricultural activities in the region, the tourism inclusive. Promoting the creation of new job opportunities and the increase of income levels of the population of the region.

Scope of measure

According to Art. 4 of the Regulation No. 30/11.08.2008 of the MAF. The measure will grant non-refundable financial support for investments and starting of non-agricultural activities with the exception of: production and processing of agricultural products, specified in Annex No. 1 of the Regulation No. 30 dd. 11.08.2008 on conditions and procedure for granting of non-refundable financial support under measure “Diversification into non-agricultural activities” of the Rural Development Programme over the period 2007-2013; production, processing and trade in fish, fishery and aquaculture products; coal industry; steel industry; production of synthetic fibers, betting and gambling; financial brokerage and real estate transactions; road transport of cargo by heavy goods vehicles for third persons against consideration; production and sale of bio-fuels from biomass; production and sale of energy from renewable sources (solar, wind, hydro, geothermal), with capacity of the installation exceeding 1 MW; production and sale of bio-energy related with processing of raw materials from the applicant’s own agricultural holding, with capacity of the installation exceeding 1 MW; construction and/or modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; specified in Art. 3, para. 4 of the Regulation No. 18 from year 2008 on conditions and procedure for granting of non-refundable financial support under measure "Adding value to agricultural and forestry products" under the RDP over the period 2007 – 2013, in cases where the applicant is a micro-enterprise within the meaning of the Small and Medium-Sized Enterprises Act. Geographical scope of measure – entire territory of the LAG.

Eligible applicants

According to Art. 13 of the Regulation No. 30/11.08.2008 of the MAF. Sole traders (ЕТ) and legal entities, which: 1. are registered under the Commerce Act or the Cooperatives Act and are entered into the Trade Register with the Registry Agency; 2. are registered as agricultural producers under the procedure of the Regulation No. 3 from year 1999 on establishing and maintaining of register of agricultural producers and/or as tobacco producers under the Tobacco and Tobacco Products Act, and 3. have a seat or branch with registered address on the territory of the LAG, and are micro-, small- or medium-sized enterprises within the meaning of Art. 3 of the Small and Medium-Sized Enterprises Act and have income at least 50% over the previous year of application from agricultural activity, processing of agricultural products and/or services directly related to agricultural activities, including from public financial support received, which is directly associated with these activities and services. Project beneficiaries must have a permanent address (for individuals), and a registered address (for sole proprietors and legal entities) on the territory of the LAG.

Eligible actions

Eligible will be only projects, which activities are implemented on the territory of the LAG. Financial support is granted for undertaking of investments on non-agricultural activities /with the exception of activities in construction and modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; in sector fishery and aquacultures and gambling/: - Rural tourism development: - Tourist accommodation and catering (including family hotels, camping sites and facilities, etc.); Development of tourism services that enables customers to participate in sports or recreational activities or pursue hobbies and other leisure-time interests (riding, cycling, photo tourism, and specialized tourism for nature lovers (monitoring of birds, animals, butterflies, plants, etc.); - Tourism services related to preservation and exhibition of sites of historic, cultural, natural or educational interest (old cellars, mills, farms, indoor and outdoor exhibitions), etc.; - Local crafts – Craft activities (including providing of services that enable customers to participate in craft activities);




- Development of social services for the rural population – child care, care for the elderly, etc.; - Processing and marketing of agricultural products which are not supported under measure 123, and where the final product is not included in Annex І of the Treaty establishing the EC; - Establishment/renovation or improvement of workshops for maintenance and repair of machinery and facilities. - Production and sale of renewable energy: -solar, wind, hydro, geothermal energy, etc. (excluding the production of bio-fuels); -bio-energy connected with processing of raw materials from the applicant’s own agricultural holding.


According to Art. 23 of the Regulation No. 30/11.08.2008 of the MAF. Construction and/or reconstruction or repairs of buildings, and/or premises and other immovable assets; purchasing of vehicles for non-agricultural activities, directly related to the activity; purchasing of machinery, facilities and equipment, including computer software and specialized equipment at the market price; purchasing of horses for non-agricultural use; general costs: related to consulting services, fees for legal services, architects, engineers; development of products, development and introduction of management systems, development and distribution of advertising and information materials, acquisition of patent rights and licenses, needed for preparation and implementation of project’s activities.


Ineligible expenditure is considered those, listed according to Art. 12 and Art. 12а of the Regulation No. 23/18.12.2009 of the MAF and under Art. 23, para. 8, 9 and 10 of the Regulation No. 30/11.08.2008 of the MAF. Construction and/or modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; purchasing of second hand equipment, machinery and facilities; purchasing of land and buildings; routine maintenance of assets, subject to investment support; investments, relating to ordinary substitution; Value Added Tax (VAT), with the exception of non-recoverable VAT; leasing; operating costs, including costs for maintenance, leases, insurance; banking fees; costs for guarantees, repayment and refinancing of interest; costs, incurred prior to the date of signing of the grant agreement for financial support, with the exception of general costs; expenditure for activities, financially supported under other project or programs of the European Union (EU); in-kind contribution; customs duties, excise duties, fees; costs related to advisory services and costs for architects and engineers incurred more than one year prior to the date of application; delivery or service, which value exceeds the amount of BGN equivalent of EUR 15 000, or it is a part of deliveries/services with total value exceeding the amount of BGN equivalent of EUR 15 000, agreed with one supplier/contractor, for which the applicant failed to produce at least three comparable independent quotations in original; payments in cash; costs related to preparation of business plan, if the applicant is approved for financial support under measures “Setting up of young farmers” or “Supporting of semi-subsistence farms undergoing restructuring” of the RDP and together with the approved project under these measures has submitted a business plan, prepared by National Agricultural Advisory Service; fines and penalties.




The financial support is in amount of 70 % of the approved expenditure. For investments in buildings and equipment for production and sale of bio-energy, at the processing of biomass (raw materials) from the applicant’s own agricultural holding and for production and sale of energy from other renewable energy sources) – increase by 10 % of the approved expenditure.


Under this measure priority will be given to supporting the farmers, submitting project proposals for activities and services, which are leading for the LDS and are related to the tourism development.




Annex No. 14.7 to LDS State aid The financial support will be granted according to the conditions and rules of the Commission

Regulation (ЕС) 1998/2006, regulating the minimum financial support (de minimis rule). Maximum amount of the non-refundable financial support for a beneficiary is EUR 200 000, and in case of investments in sector “road transport” is EUR 100 000. The financial support for a beneficiary may not exceed the BGN equivalence of the amount of EUR 200 000 within a period of three consecutive years – the year of payment and two previous years. The financial support for a beneficiary under projects in sector “road transport” may not exceed the BGN equivalence of the amount of EUR 100 000 within a period of three consecutive years – the year of payment and two previous years.

Measure code 312

Description of measure Support for the creation and development of micro-enterprises


Promoting the development of integrated tourism, growth and creation of new jobs in micro-enterprises for non-agricultural activities and promoting the entrepreneurship on the territory of the LAG.

Scope of measure

According to Art. 4 of the Regulation No. 29/11.08.2008 of the MAF the measure will grant non-refundable financial support for investments and advisory services in relation to marketing and management for newly established and existing micro-enterprises and individuals, as well as for investments related to the creation and development of non-agricultural activities with the exception of: production and processing of agricultural products, specified in Annex No. 1 of the Regulation No. 29 dd. 11.08.2008 on conditions and procedure for granting of non-refundable financial support under measure „Support for the creation and development of micro-enterprises” from the Rural Development Programme over the period 2007-2013; production, processing and trade in fish, fishery and aquaculture products; coal industry; steel industry; production of synthetic fibers, betting and gambling; financial brokerage and real estate transactions; road transport of cargo by heavy goods vehicles for third persons against consideration; production of bio-energy intended for sale in cases of processing of products (raw materials), which are listed in Annex No. 1; production and sale of energy from renewable sources, with capacity of the installation exceeding 1 MW; Construction and/or modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; specified in Art. 3, para. 4 of the Regulation No. 18 from year 2008 on conditions and procedure for granting of non-refundable financial support under measure "Adding value to agricultural and forestry products" under the RDP over the period 2007-2013. Geographical scope of measure – entire territory of the LAG.

Eligible applicants

According to Art. 13 of the Regulation No. 29/11.08.2008 of the MAF. Micro-enterprises within the meaning of Art. 3, para. 3 of the Small and Medium-Sized Enterprises Act, which: 1. have a seat or branch with registered address, or permanent address for the individuals, on the territory of the LAG; 2. are not registered as agricultural producers under the procedure of the Regulation No. 3 from year 1999 on establishing and maintaining of register of agricultural producers (SG, issue 10 of 1999), or as agricultural farmers in the Integrated Administration and Control System (IACS) and/or as tobacco producers under the Tobacco and Tobacco Products Act and are not carrying out any agricultural activity; 3. are registered under the Commerce Act, Cooperatives Act or Crafts Act. The sole traders and legal entities will be eligible for financial support only if duly entered into the Trade Register with the Registry Agency. As individuals under the procedure of this Regulation may apply only persons, who are registered under the Crafts Act and only in relation to the registered objects of activity.




Project beneficiaries must have a permanent address (for individuals), and a registered address (for sole proprietors and legal entities) on the territory of the LAG.

Eligible actions

The measure will grant non-refundable financial support for investments and advisory services in relation to marketing and management for newly established and existing micro-enterprises. The measure will provide financial support to non-agricultural micro-enterprises for investments related to the creation or development of non-agricultural activities. - Processing industry - production of furniture, light engineering, etc.; - Production of renewable energy; - Production of bio-energy to meet the micro-enterprise’s own energy needs; - Production of bio-energy intended for sale in cases of processing of products (raw materials), which are not listed in Annex І to the Treaty establishing the EC; - Production of energy for sale from renewable energy sources (solar, wind, hydro, geothermal, etc.). - Services – development of activities by private micro-enterprises related to rural tourism, recreation and sports, establishment and development of consulting and business services, social and healthcare services, transport services, etc. Eligible will be only projects, which activities are implemented on the territory of the LAG.


According to Art. 23 of the Regulation No. 29/11.08.2008 of the MAF. Construction and/or reconstruction or repairs of buildings, and/or premises and other immovable assets; purchasing of vehicles for non-agricultural activities, directly related to the activity; purchasing of machinery, facilities and equipment, including computer software and specialized equipment at the market price; purchasing of horses for non-agricultural use; general costs: related to consulting services, fees for legal services, architects, engineers; development of products, development and introduction of management systems, development and distribution of advertising and information materials, acquisition of patent rights and licenses, needed for preparation and implementation of project’s activities.


Ineligible expenditure is considered those, listed according to Art. 12 and Art. 12а of the Regulation No. 23/18.12.2009 of the MAF and under Art. 23 para. 8 and para. 9 of the Regulation No. 29/11.08.2008 of the MAF. Construction and/or modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; purchasing of second hand equipment, machinery and facilities; purchasing of land and buildings; routine maintenance of assets, subject to investment support; investments, relating to ordinary substitution; Value Added Tax (VAT), with the exception of non-recoverable VAT; leasing; operating costs, including costs for maintenance, leases, insurance; banking fees; costs for guarantees, repayment and refinancing of interest; costs, incurred prior to the date of signing of the grant agreement for financial support, with the exception of general costs; expenditure for activities, financially supported under other project or programs of the European Union (EU); in-kind contribution; customs duties, excise duties, fees; costs related to advisory services and costs for architects and engineers incurred more than one year prior to the date of application; delivery or service, which value exceeds the amount of BGN equivalent of EUR 15 000, or it is a part of deliveries/services with total value exceeding the amount of BGN equivalent of EUR 15 000, agreed with one supplier/contractor, for which the applicant failed to produce at least three comparable independent quotations in original; payments in cash; fines and penalties.




The financial support is in amount of 70 % of the approved expenditure. For investments in buildings and equipment for production and sale of energy from renewable energy sources, with the exception of those listed in Annex I to the Treaty establishing the EC increase by 10 % of the approved expenditure.





Under this measure priority will be given to supporting the micro-enterprises, carrying out activities and services, which are leading for the LDS and are related to the tourism development. Annex No. 15.7 to LDS

State aid The financial support will be granted according to the conditions and rules of the Commission Regulation (ЕС) 1998/2006, regulating the minimum financial support (de minimis rule). Maximum amount of the non-refundable financial support for a beneficiary is EUR 200 000, and in case of investments in sector “road transport” is EUR 100 000. The financial support for a beneficiary may not exceed the BGN equivalence of the amount of EUR 200 000 within a period of three consecutive years – the year of payment and two previous years. The financial support for a beneficiary under projects in sector “road transport” may not exceed the BGN equivalence of the amount of EUR 100 000 within a period of three consecutive years – the year of payment and two previous years.

Measure code 313

Description of measure Encouragement of tourism activities


Diversification and improvement of tourist infrastructure, visitors’ attractions and facilities in the rural areas. Promotion of the income levels growth and creation of job opportunities in the rural areas through supporting the development of the integrated rural tourism.

Scope of measure

Financial support is granted only for activities, implemented on the territory of the Belovo Municipality.

Eligible applicants

According to Art. 13 of the Regulation No. 32/12.09.2008 of the MAF. - Municipalities Belovo, Septemvri and Velingrad; - Non-Profit Legal Entities, registered under the Non-Profit Legal Entities Act; - Community centers, registered under the Community Centers Act. Project beneficiaries must have a registered address on the territory of the LAG.

Eligible actions

According to Art. 4 of the Regulation No. 32/12.09.2008 of the MAF. Eligible will be only projects, which activities are implemented on the territory of the LAG and are not related to investments for construction and modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; in sector fishery and aquacultures and gambling. Subject to financial support will be the following activities: 1. Improvement of access to the local cultural heritage - visitors attractions and leisure and entertainment amenities: visitor centers for presentation and exhibition of local cultural heritage; development of small-scale indoor and outdoor attractions; temporary exhibitions centers for tourist purposes; 2. Improvement of access to the natural sightseeing sites - sports and recreation facilities and amenities: walking routes; infrastructure and facilities for walking tourism, mountain tourism and other sports; information boards and signposts of tourist sites and routes; shelters and safety facilities, etc.; 3. Development and marketing of tourism products: a) development of tourist marketing strategy for the territory, advertising and information materials; b) development of electronic booking system on the territory of the LAG. No financial support will be granted for projects, which include only activities under item 3 above.


According to Art. 20 of the Regulation No. 32/12.09.2008 of the MAF. 1. construction, reconstruction and/or repairs of buildings, facilities, premises and/or other immovable assets: a) costs related to direct execution of the construction and repair works and construction and installation works;




b) unforeseen costs in amount up to 5 % of the value of approved expenditure under letter “a”; 2. purchasing of machinery, facilities and equipment, including computer software and specialized equipment (at the market price); 3. general costs: a) related to consulting services, fees for legal services, architects, engineers and other activities and services, needed for preparation, implementation and reporting of the project’s activities; b) related to marketing of tourism products at local level, development and distribution of marketing strategies, advertising and information materials, development of electronic systems, acquisition of patent rights and licenses, needed for preparation and implementation of the project’s activities.


Ineligible expenditure is considered those, listed according to Art. 12 and Art. 12а of the Regulation No. 23/18.12.2009 of the MAF and under Art. 20, para. 7 of the Regulation No. 32/12.09.2008 of the MAF. Costs for construction and/or modernization of infrastructure or purchasing of equipment for golf, rock climbing and hunting; purchasing of second hand equipment, machinery and facilities; purchasing or lease of land and buildings; routine maintenance of assets, subject to investment support; investments, relating to ordinary substitution; Value Added Tax (VAT), with the exception of non-recoverable VAT; leasing; operating costs, including costs for maintenance (routine repairs), leases, insurance; banking fees; costs for guarantees, repayment and refinancing of interest; costs, incurred prior to the date of signing of the grant agreement for financial support, with the exception of general costs; expenditure for activities, financially supported under other project or programs of the European Union (EU); in-kind contribution; customs duties, excise duties, fees; costs related to advisory services and costs for architects and engineers incurred more than one year prior to the date of application; delivery or service, which value exceeds the amount of BGN equivalent of EUR 15 000, or it is a part of deliveries/services with total value exceeding the amount of BGN equivalent of EUR 15 000, agreed with one supplier/contractor, for which the applicant failed to produce at least three comparable independent quotations in original; payments in cash; compensations for alienation of real estate, as well as compensations under Art. 209 and 210 of the STA; fines and penalties.




The financial support is in amount of 100% of the approved expenditure for projects of the municipalities and for projects, submitted by non-profit legal entities or community centers, being non-revenue generating projects in the public interest.


Annex No. 14.4

State aid The financial support will be granted according to the conditions and rules of the Commission Regulation (ЕС) 1998/2006, regulating the minimum financial support (de minimis rule), with the exception of the projects of the municipalities. The total public financial support (European and/or state budget funds) for a beneficiary, a non-profit legal entity or a community center, may not exceed the BGN equivalence of the amount of EUR 200 000 within a period of three consecutive years (the year of payment and two previous years).

Measure code 321

Description of measure Basic services for the economy and rural population


- To improve access for the local population to cultural, sports and recreational & leisure-time services;




- To improve access to social services for the local population and especially for children and vulnerable groups; - To improve access to ICT-related services.

Scope of measure

According to Art. 4 of the Regulation No. 25/29.07.2008 of the MAF the measure will provide financial support for investments aiming at improvement of basic services for the rural economy and population on the entire territory of the LAG. The financial support will be intended for establishment of basic services concerning a locality or group of localities, and related provision/rehabilitation of small-scale local infrastructure, with the exception of: Reconstruction/rehabilitation of cultural monuments of national/world importance (declared as such by the NICM); Investments in state educational and medical facilities;

Eligible applicants

According to Art. 14 of the Regulation No. 25/29.07.2008 of the MAF: - Municipalities Belovo, Septemvri and Velingrad for all eligible activities; - Non-Profit Legal Entities (NPLE), registered under the Non-Profit Legal Entities Act, for activities under items 2, 3, 4, 5, 6 and 7; - Community centers, registered under the Community Centers Act, for activities under items 2, 3, 4, 5, 6 and 7; - Project beneficiaries must have a registered address on the territory of the LAG.

Eligible actions

Eligible will be only projects, which activities are implemented on the territory of the LAG. The measure will provide financial support for investments in infrastructure and equipment aiming at development of services for the population and economy in rural areas: - Investments for improvement of energy efficiency in municipal and other buildings used for provision of community services; - Establishment of new or improvement of existing centers for provision of cultural services (such as cultural centers, theatres, libraries), including creation of mobile units; - Establishment or improvement of centers for recreation, leisure time and sports (including sports centers, youth centers, etc.); - Establishment or improvement of centers for social services – child care (nurseries and kindergartens), care for elderly and people with disabilities (day care centers) including specialized transport; - Establishment or improvement of centers for provision of ICT-based services (health advice, business support, municipal services, etc.), including establishment of mobile ICT centers; - Broadband infrastructure development for internet access.


According to Art. 23 of the Regulation No. 25/29.07.2008 of the MAF. 1. construction, reconstruction and/or repairs of buildings, facilities, premises and/or other immovable assets: a) costs related to direct execution of the construction and repair works and construction and installation works; b) unforeseen costs in amount up to 5 % of the value of approved expenditure under letter “a”; 2. purchasing of new machinery, facilities and equipment, including computer software and specialized equipment up to the market value of the assets; 3. Purchasing of books, audio and video materials up to its market value, if are part of the setting-up investment of a new service; 4. Costs for purchasing of transport vehicles up to its market value, for provision of services for activities under items 3, 5 and 6 of the eligible activities; 5. General costs related to consulting services, fees of architects and engineers including costs for feasibility studies, preparation of conceptual and/or contractor/technical design, within the meaning of the Regulation No. 4 dd. 21.05.2001 on the scope and the content of the investment projects, costs for drafting the report on conformity assessment of the investment project with the essential requirements to the construction works, construction supervision, fees, analysis of economic and social benefits, needed for preparation, implementation and reporting of project’s activities.









The financial support is in amount of 100% of the approved expenditure for projects of the municipalities and for projects, submitted by non-profit legal entities, local religious branches or community centers, being non-revenue generating projects in the public interest.




Measure code 322

Description of measure Village renewal and development


To improve the attractiveness of the living environment in localities on the territory of the LAG.

Scope of measure

The measure will provide financial support for investments in parks, green areas, streets, squares, sidewalks and street lightning, and renewal of buildings in the localities on the territory of the LAG. The measure will be implemented on the entire territory of the LAG.

Eligible applicants

- Municipalities Belovo, Septemvri and Velingrad for eligible activities under items 1, 2, 3, 5 and 6; - Non-Profit Legal Entities and community centers, having registered address on the territory of the LAG, for eligible activities under items 1 and 2; - Civil partnerships of legal entities and individuals, established for the renovation of the facades of private buildings and surrounding areas, for eligible activities under item 4; - Local religious branches, which may apply apply for renovation and refurbishment of




buildings of religious importance and are registered in a municipality on the territory of the LAG, for eligible activities under item 3.

Eligible actions

According to Art. 4 of the Regulation No. 24/29.07.2008 of the MAF eligible will be only projects, which activities are implemented on the territory of the LAG and are related to: - Rehabilitation of public green areas - parks and gardens, children playgrounds and related facilities; - Reconstruction and refurbishment of municipal buildings of local historic and cultural importance and the improvement of the surrounding areas, including leveling and landscaping; - Reconstruction and refurbishment of buildings of local religious importance and the improvement of the surrounding areas, including leveling and landscaping; - Refurbishment of facades of private buildings and surrounding areas, including leveling and landscaping (if integrated in a locality’s renewal plan); - Reconstruction and construction of street network, sidewalks, squares, lightning within the locality’s territory; - Preparation of locality’s renewal plans, if the plan includes some of the investment activities mentioned above.


According to Art. 21 of the Regulation No.24/29.07.2008 of the MAF: 1. Reconstruction/rehabilitation or repairs of buildings, and/or premises and other immovable assets, including parks and gardens, children playgrounds and related facilities; construction, reconstruction or repairs of sidewalks, squares and street lightning: a) costs related to direct execution of the construction and repair works and construction and installation works; b) unforeseen costs in amount up to 5 % of the value of approved expenditure under letter “a”; 2. Purchasing of facilities up to its market value; 3. General costs related to consulting services, fees of architects and engineers including costs for feasibility studies, preparation of conceptual and/or contractor/technical design, within the meaning of the Regulation No. 4 dd. 21.05.2001 on the scope and the content of the investment projects, costs for drafting the report on conformity assessment of the investment project with the essential requirements to the construction works, construction supervision, fees, analysis of economic and social benefits, needed for preparation, implementation and reporting of project’s activities.



Financial Minimum amount of total eligible expenditure per project is BGN 30 000




parameters for projects

Maximum amount of total eligible expenditure per project is BGN 200 000






Measure code 323

Description of measure Conservation and upgrading of the rural heritage


Preservation, conservation and improvement of access to natural, cultural heritage and rural traditions aiming at improvement of tourism product on the territory of the LAG. To promote rural heritage for increase of tourism interest among local community and visitors on the territory of the LAG.

Scope of measure

Financial support will be provided for projects, which develop the tourism product on the territory of the LAG and contribute to the improvement of tangible and intangible cultural heritage, as well as for projects, contributing to the preservation of natural heritage and rural landscape in localities on the territory.

Eligible applicants

- Municipalities Belovo, Septemvri and Velingrad; - Non-Profit Legal Entities, registered under the Non-Profit Legal Entities Act; - Community centers, registered under the Community Centers Act; - Project beneficiaries must have a registered address on the territory of the LAG.

Eligible actions

Eligible will be only projects, which activities are implemented on the territory of the LAG and are related to: - Investments for maintenance, recovery and improvement of natural heritage of the villages conservation and recovery of traditional and rural landscape; - Studies and investments, related to maintenance, recovery and renovation of the tangible cultural heritage – creation, preservation or expansion of collections - historical, ethnographic, etc.; preservation, rehabilitation, cleaning and maintenance of significant sites of cultural-historical heritage in the region (including archeological sites), as well as the surrounding areas; informational activities, related to the promotion of the tangible cultural heritage; - Studies and investments, related to maintenance, recovery and renovation of the intangible cultural heritage - studies and development of materials in relation to documentation and/or studies, and/or preservation of elements of the intangible cultural heritage; - Activities, related to preservation and promotion of the local folklore.


- Costs for conservation of the tangible cultural heritage - restoration and expansion of sites and expositions related to the cultural-historical heritage and improvement of access to it /repairs, provision of access for people with disabilities, purchase and restoration of exhibits and equipment for ethnographic, historical and other expositions, costs for funding of archeological excavations, etc./, including general costs, related to the investment; - Costs for conservation of the intangible cultural heritage - costs for organization and carrying out of different events in relation to local cultural customs and traditions - /festivals, fairs,




feasts, customs/ and other events, related to local cultural heritage; - Costs for conservation of the natural heritage - costs for removal of existing contaminations in protected areas and around natural reserves, recovery and rehabilitation of ravines and ditches in villages; - Costs for promotion of the cultural and natural heritage – costs for preparation and carrying out of information campaigns, related to the natural and cultural heritage /brochures, leaflets, publications, documentaries, seminars, studies on biodiversity, etc./.


Ineligible expenditure is considered those, listed according to Art. 12, para. 2 and para. 3 of the Regulation No. 23 dd. 18.12.2009. Financial support is not eligible for: - reconstruction/rehabilitation of cultural monuments of national importance, declared as such by the National Institute of Cultural Monuments (NICM); - infrastructure for broadband internet access; - investments in buildings for educational and healthcare purposes; - routine repairs of buildings/ infrastructure; - operating costs related to the provision of services.







State aid The financial support will be granted according to the conditions and rules of the Commission Regulation (ЕС) 1998/2006, regulating the minimum financial support (de minimis rule), with the exception of the projects of the municipalities. The total public financial support (European and/or state budget funds) for a beneficiary, a non-profit legal entity or a community center, may not exceed the BGN equivalence of the amount of EUR 200 000 within a period of three consecutive years (the year of payment and two previous years). The financial support will be granted according to the conditions and rules of the Commission Regulation (ЕС) 1998/2006, regulating the minimum financial support (de minimis rule). The total public financial support (European and/or state budget funds) for a beneficiary, a non-profit legal entity or a community center, may not exceed the BGN equivalence of the amount of EUR 200 000 within a period of three consecutive years (the year of payment and two previous years).

Measure code 431-1

„Running the local action groups, acquiring skills and animating the respective territory for local action groups, implementing local development strategies”


- To encourage the development of LAG Belovo, Septemvri and Velingrad as a strong and efficient structure; - To ensure resources – human, technical and financial – needed for the overall support and delivery of activities of LAG Belovo, Septemvri and Velingrad and for the implementation of the local development strategy; - To enhance the awareness and skills of local people in the LEADER approach, and to encourage their active participation in the process of local development strategy implementation.

Scope of measure

The territory of the LAG Belovo, Septemvri and Velingrad.




Eligible applicants

LAG Belovo, Septemvri and Velingrad

Eligible actions

1. Conducting the studies about the respective territory (territorial, economic and social analyses and other analyses and studies); 2. Undertaking measures to provide information about the territory and the local development strategy (studies, monitoring, etc.); 3. Training of staff involved in the implementation of the Local development strategy; 4. promotion, informing and publicity: a) creation and maintenance of webpage; b) preparation and maintenance of up-to-date news; c) publications, publishing activities, including publishing of magazine, publications of the results of completed activities, advertising of LAG activity, invitations for forthcoming events; d) printing of brochures, advertising materials, application forms, training materials and other media related to the promotion of activities of the LAG; e) organization of radio and TV shows and advertising; f) translation; g) making and installation of sign plates and billboards for promotion of the project; h) other costs for promotion, informing and publicity; 5. Organization of training of local leaders.


1. Expenditure for salaries and other wages for the staff (executive director, expert(s) on implementation of the activities under the Local development strategy, accountant, assistant, etc.), including social and health insurance payments for the LAG staff; 2. Expenditure for experts and other paid services related to the implementation of the LAG strategy, experts’ fees (fees of consultants, external experts, auditors, etc.); 3. Expenditure for business trips of staff according to the Regulation on business trips in the country, approved by the Council of Ministers Decree No. 72/1986 (prom., SG, issue 11/1987; amend., issue 21/1991, issue 2/1994, issue 62/1995, issue 34/1997, issue 40/1999 and issue 2/2008) and the Regulation on business trips and specializations abroad, adopted by the Council of Ministers Decree No. 115/2004 (prom., SG, issue 50/2004; amend., issue 80 and 86/2004 г., issue 36 and 96/2005, issue 2/2006, issue 23 and 98/2007, issue 64/2008 and issue 10/2009); 4. Expenditure for rent of an office; 5. (suppl. - SG, issue 38/2010) Expenditure for rent and/or purchasing of office-equipment, including legal and accounting software and other office equipment and furniture; 6. Purchasing of office supplies and stationery; 7. Expenditure for lease and/or purchasing of passenger car below 150 hp, and above 5+1 seats; 8. Expenditure for purchasing of fuel for the passenger car; 9. Expenditure for organization of LAG meetings; 10. Expenditures for communications (telephone, Internet, postal services, courier services), transport, heating and power supply and other operating costs, necessary for day-to-day office operation; 11. Expenditure for LAG’s participation in the activities of the National and EU network for rural development.


BGN 780 000


100 %

Project N/A




selection criteria

Measure code 421

Inter-territorial and trans-national cooperation


To support the achievement of the overall objective of the LDS through the development partnerships at national and international level and the implementation of joint actions and projects.

Scope of measure

В LDS will be implemented only activities under preparatory technical support, aiming at establishment of partnerships for cooperation and preparation of joint projects with territories from rural areas, covered by LAG-Leader, in Bulgaria and rural areas, covered by LAG in other member states of EU. LAG Belovo, Septemvri and Velingrad will apply with projects for implementation of joint actions and other activities with territories from rural areas, covered by LAG-Leader, in Bulgaria and rural areas, covered by LAG in other member states of EU, separately from the local strategy.

Eligible applicants

LAG Belovo, Septemvri and Velingrad

Eligible actions

Feasibility studies, market research, surveys. Technical planning (planning sessions, elaboration of joint action plans, etc.). Carrying out of partnership meetings.


- Expenditure for business trips of staff according to the Regulation on business trips in the country and the Regulation on business trips and specializations abroad; - Expenditure related to meetings with potential partners /travel expenses, accommodation and fees for experts, full board and lodging costs for potential partners, translation costs, interpreter's fees, communication costs, participation costs for seminars, forums and events/; - Expenditure related to organization of meeting sessions and planning of events /renting of premises, equipment, materials, etc./; - Project pre-development costs /feasibility studies, consulting for specific issues, fees for experts working on action plan, etc., translation costs, additional project staff costs/.


According to item 6 of the LDS „Detailed financial plan”.

Amount of financial support (in % )

100 %


N/A




2. Procedures for strategy implementation In Annex 14.3 – Operating rules on implementation of LDS are described all relevant procedures for implementation of the strategy, functions and responsibilities of the governing bodies of the LAG and partners involved, method for application and other procedures under the measures of the RDP.

3. Ensuring the balanced strategy implementation

BY PRIORITIES BGN % of public contribution

Priority 1: Expanded tourism area with integrated rural tourism 2 340 500 59,84 Priority 2: Favorable basic and social infrastructure in support of integrated rural tourism 770 000 19,69

Under measure 421 20 500 0,53 Under measure 431-1 780 000 19,94

Total 3 911 000 100 BY BENEFICIARIES

PUBLIC /including measures 431-1 and 421/ 1 285 500 32,87 PRIVATE 2 625 500 67,13

Total 3 911 000 100




VI. Detailed financial plan 1. Indicative allocation of funds

by axes, by measures and by years

INDICATIVE ALLOCATION OF FUNDS BY AXES, MEASURES AND YEARS

Total public contribution

for


for


for


for

2010 2011 2012 2013

Total for period of the strategy

Measure code

Description of measure

BGN BGN BGN BGN BGN %

4.1.1. Measures related to competitiveness (including measures under Axis 1 of the RDP)

0.0 200000.0 200000.0 200000.0 600000.0 15.34%

121 Modernization of agricultural holdings

100000.0 100000.0 100000.0 300000.0 7.67%

123 Adding value to agricultural and forestry products

100000.0 100000.0 100000.0 300000.0 7.67%

4.1.2. Measures related to environment/land husbandry (including measures under Axis 2 of the RDP)

0.0 0.0 30000.0 60000.0 90000.0 2.30%

226 Restoring forestry potential and introducing prevention actions

30000.0 60000.0 90000.0 2.30%

4.1.3. Measures related to quality of life/diversification (including measures under Axis 3 of the RDP)

0.0 550500.0 935000.0 935000.0 2420500.0 61.89%

311 Diversification into non-agricultural activities

90000.0 150000.0 150000.0 390000.0 9.97%

312 Support for the creation and development of micro-enterprises

150000.0 300000.0 300000.0 750000.0 19.18%

313 Encouragement of tourism activities

110500.0 200000.0 200000.0 510500.0 13.05%

321 Basic services for the economy and rural population

100000.0 100000.0 100000.0 300000.0 7.67%

322 Village renewal and development

100000.0 100000.0 100000.0 300000.0 7.67%




323 Conservation and upgrading of the rural heritage

85000.0 85000.0 170000.0 4.35%

4.2.1. Inter-territorial and trans-national cooperation

4800.0 5700.0 10000.0 20500.0 0.52%

4.3.1. Running the LAG, acquiring skills and animating the respective territory

218600.0 140350.0 140350.0 280700.0 780000.0 19.94%

1.

Running costs (running of the LAG) – up to 60 % of the expenditure under М431

131160.0 84210.0 84210.0 168420.0 468000.0 11.97%

2.

Acquiring skills and animating the territory – minimum 40% of the expenditure under М431

87440.0 56140.0 56140.0 112280.0 312000.0 7.98%

TOTAL FOR OVERALL STRATEGY:

218600.0 895650.0 1311050.0 1485700.0 3911000.0 100.00%




2. Financial rationale for budget and allocation of funds by axes, by measures and by years

The allocation of funds for implementation of the LDS is closely related with defined objective of the LDS and its two main priorities. The discussions on the budget framework of the LDS were carried out by the stakeholders during the forum sessions for the working meetings. In addition, there were made consultations between different experts from the list of the MAF, who have provided assistance for the implementation of the strategy. Generally, the allocation of funds was made as follows: - By axes: Axis 3 – under this axes is allocated the largest amount of funds – BGN 2 420 500. It is reasonable, taking into consideration the defined LDS’s priorities during the strategy development, and namely, the main Priority 1 „Expanded tourism area with integrated rural tourism”, as well as the Priority 2 „Favorable basic and social infrastructure in support of integrated rural tourism”. The allocation of funds under this axis was made in the course of two forum sessions.

Axis 1 – under this axes are allocated BGN 600 000, which are reasonable again based on defined priorities.

Axis 2 – under this axes are allocated only BGN 90 000. It was agreed unanimously at the forum sessions that only prevention actions against forest fires will be implemented under this axis. - By measures: The allocation of funds for the LDS by measures was made during the forum sessions and is as follows: Measure 121 – BGN 300 000 Measure 123 – BGN 300 000 Measure 226 – BGN 90 000 Measure 311 – BGN 390 000 Measure 312 – BGN 750 000 Measure 313 – BGN 510 500 Measure 321 – BGN 300 000 Measure 322 – BGN 300 000 Measure 323 – BGN 170 000 - By years: The funds are allocated by years in view of expected deadlines for approval of the LAG. For the first year of the implementation of the LDS, i.e. year 2011, are allocated lesser amounts due to reasonable assumption of the period for organizational establishment of the LAG and related capacity building. The amounts increase over the next years. The allocation is as follows: year 2011 - 1 114 250 year 2012 - 1 311 050 years 2013/14/15 - 1 485 700




VII. Monitoring and evaluation

1. Monitoring and evaluation framework including issues, addressed by the evaluation, indicators for monitoring and evaluation, main parameters, levels to be achieved

INDICATORS IN RELATION TO OVERALL IMPLEMENTATION OF THE LDS

TYPE OF INDICATOR INDICATOR UNIT OF

MEASURE

TARGET UP TO END OF

LDS SOURCE OF INFORMATION

Number of projects, financed under LDS number 62 LAG’s database and reports Number of consultations, provided to potential applicants for funding within the framework of the Strategy

number 100 LAG’s database and reports

Number of beneficiaries supported under LDS


Number of business units supported in the period


Total volume of investments (public contribution)

EUR 1 590 000 LAG’s database and reports

Number of micro-enterprises created number 5 LAG’s database and reports Projects related to ICT services number 4 LAG’s database and reports Projects related to improvement/construction of buildings intended for provision of services


Output

Projects with investments in tourism number 20 LAG’s database and reports Number of jobs created number 70 Reports of beneficiaries and studies

about the territory Number of participants that successfully ended a training activity

% 90 LAG’s database and reports; issued certificates

Number of women that successfully ended a training activity

number 43 LAG’s database and reports; issued certificates

Young people (up to 40 years old) and women that successfully implemented projects under LDS

% 35 LAG’s database and reports

Population on the territory using the improved services

number 50 000 LAG’s database and reports

Increased access to internet in the region % 20 Reports of beneficiaries and studies Constructed/modernized buildings and facilities related to cultural, sports and social services

number 15 Reports of beneficiaries and studies

Successfully implemented projects for rural tourism


One-day visitors number 300 Reports of beneficiaries and studies Number of accommodations on the territory of the LAG


Traditional and specific local customs/events/folklore heritage-reinstated, animated and promoted among local community


Result

Population on the territory using the number 50000 Reports of beneficiaries and studies




improved living environment Participants in projects with improved ecological culture


Natural sites with improved access and animation


Publication describing CHH number 5 Reports of beneficiaries and studies Number of localities with successfully implemented activities, financed by LDS

number 20/20 Reports of beneficiaries and studies

Number of business units that introduced new products


Number of business units that introduced new processes and technologies


Number of modernized cattle-breeding farms number 4 Reports of beneficiaries and studies Implemented good manufacturing practices and quality management certificates


Produced agricultural products following the support (increase)

% 18 Reports of business entities, supported under LDS

Economic growth % 10 Reports of business entities, supported under LDS

Improved energy efficiency of agricultural holdings as a result of provided support

% 20 Reports of business entities, supported under LDS

Creation of new jobs (net number of full-time jobs created)

number 200 Reports of business entities, supported under LDS

Reduction of unemployment as a result of implemented projects

% 10 LOD’s data

Satisfaction of provided services % 80 Reports of beneficiaries and studies Increased share of young people involved in CHH-related issues


INDICATORS UNDER MEASURE 121 OF THE LDS

Type of indicator Indicator Unit of

measure

Target up to end of LDS

Source of information

Number of projects, financed under the measure


Number of agricultural holdings, supported under the measure


Total volume of investments EUR 150 000 LAG’s database and reports Number of supported agricultural holdings from cattle-breeding sector


Share of investments, directly related to agricultural holdings from sector „Milk”


Share of investments, directly related to modernization and renovation of farms


Share of investments, directly related to facilities and respective equipment for organic agricultural products.


Output

Share of investments, directly related to production of energy from renewable energy sources and production of energy crops.


Number of successfully implemented projects

number 8 LAG’s database and reports Result

Number of agricultural holdings number 4 LAG’s database and reports




implemented new product as a result of funding received Number of agricultural holdings implemented new equipment through the support granted


Number of modernized cattle-breeding farms number 3 LAG’s database and reports Number of agricultural holdings producing organic products as a result of funding received


Share of young farmers, financed under the measure


Implemented good manufacturing practices and quality management certificates

number 4 Reports of business entities, beneficiaries under the measure; studies about the territory



measure




number 8 LAG’s & beneficiaries’ database and reports

Number of enterprises, supported under the measure


Total volume of investments EUR 150 000 LAG’s & beneficiaries’ database and reports

Output

Share of investments, directly related to environmental protection

% 40 LAG’s & beneficiaries’ database and reports

Number of enterprises, implemented new products

number 6 LAG’s & beneficiaries’ database and reports Result Number of enterprises, implemented new

processes and technologies number 6 LAG’s & beneficiaries’ database

and reports


Type of indicator

Indicator Unit of measure





Number of beneficiaries, supported under the measure


Number of anti-fire depots equipped number 4 Reports of business entities, beneficiaries under the measure; studies about the territory

Number of fixed fire monitoring points constructed/improved

number 2 Reports of business entities, beneficiaries under the measure; studies about the territory

Output

Total volume of investments EUR 45 000 Reports of business entities, beneficiaries under the measure; studies about the territory

Impact Risk of forest fires - decrease % 20 LAG’s & beneficiaries’ database

and reports






measure








Number of supported new tourism activities


Volume of investments in tourism EUR 150 000 LAG’s & beneficiaries’ database and reports

Number of supported beneficiaries for new, non-tourism services


Output

Volume of investments in new, non-tourism services

EUR 50 000 LAG’s & beneficiaries’ database and reports

Number of jobs created in tourism number 20 Reports of beneficiaries and studies

about the territory Number of jobs created in other non-tourism services

number 10 Reports of beneficiaries and studies about the territory

Result

Share of young people involved, through implemented projects

% 35 Reports of beneficiaries and studies about the territory

Creation of new jobs (net number of full-time additional jobs created)


Reduction of unemployment as a result of implemented projects

% 10 Reports of beneficiaries and studies about the territory

Impact

Improved social services as a result of funding received

% 10 Questionnaires and feedback of users



measure



Number of micro-enterprises supported/created


- newly created micro-enterprises number 5 LAG’s & beneficiaries’ database and reports

- other micro-enterprises number 10 LAG’s & beneficiaries’ database and reports


Output

Number of projects in tourism sector number 10 LAG’s & beneficiaries’ database and reports

Number of jobs created number 30 Reports of beneficiaries and studies

about the territory

Result

Share of supported projects submitted by women and projects with investments in

% 35 LAG’s & beneficiaries’ database and reports




tourism (up to 40 years old) Successfully implemented projects for integrated rural tourism


Creation of new jobs (net number of full-time additional jobs created)


Reduced unemployment levels as a result of micro-enterprises creation

% 10 Study about the territory, Employment Agency & Labor Directorate

Impact

Increased number of entrepreneurs number 10 Reports of beneficiaries and studies about the territory



measure





Number of new tourism activities, supported under the measure

number 10 LAG’s & beneficiaries’ database and reports Output


Number of one-day visitors number 50 Reports of beneficiaries and studies about the territory

Number of accommodations number 30 Reports of beneficiaries and studies about the territory Result

Number of jobs created number 20 Reports of beneficiaries and studies about the territory

Impact Creation of new jobs (net number of full-time additional jobs created)

number 25 Study about the territory, Employment Agency & Labor Directorate



measure








Number of projects related to information and telecommunications services


Output

Number of projects for construction/improvement of buildings related to provision of services


Population in the rural areas using the improved services

number 50 000 Reports of beneficiaries and studies about the territory Result

Number of constructed/modernized buildings and facilities related to the provision of cultural and sports services





Number of constructed/modernized buildings and facilities related to the provision of social services


Net number of full-time additional jobs created

number 20 Reports of beneficiaries and studies about the territory Impact

Population satisfaction with provision of basic services

% 60 Questionnaires and studies on quality of services



measure





Number of villages, where the activities are carried out

number 9 LAG’s & beneficiaries’ database and reports Output


Result Population in rural areas using the improved environment

number 10 000 LAG’s & beneficiaries’ reports and studies about the territory

Impact Satisfaction with living environment

changed % 70 Questionnaires



measure





Output Number of participants (young people, children) actively participating in the activities on implementation of the projects


Traditional and specific local customs/events/folklore heritage -reinstated, animated and promoted among local community;

number 10 LAG’s & beneficiaries’ reports and studies about the territory

Participants in projects informed/with improved ecological culture;


Number of natural sites on the territory of the LAG with improved access and providing interesting animation;


Result

Publications, describing cultural-historical and natural heritage of the LAG


Impact Increased share of young people involved in CHH-related issues

% 30 LAG’s & beneficiaries’ reports and studies about the territory




2. Evaluation by external experts At the year of completion of the LDS, LAG will assign to external experts carrying out of evaluation on implementation of the strategy. The LAG has planned also a mid-term evaluation of the strategy in year 2013.

The LAG will submit to the MА two audit reports: audit report on the technical execution of planned activities upon implementation of the approved strategy and audit report on the performance of the financial policy of the LAG upon implementation of the approved strategy and the expenditure, incurred during the reporting period.

3. Procedures for the Annual progress reports In Annex 14.3 – Operating rules on implementation of LDS are described the procedures related to the annual progress reports on the LDS. The LAG shall, by January 31 of next calendar year, submit to the Managing Authority of the RDP the Annual report for preceding year on the implementation of the LDS.

By the end of each calendar year, the ED of the LAG shall draft Annual report on the implementation of the LDS, based on completed project activities. The report shall include a technical description of the activities completed during the reporting year and financial report, as well as any other information required by the MA of the RDP. The annual report shall be adopted by the MB and shall be approved by the General Meeting of the LAG by December 31 of the current year. The report approved by the General Meeting shall be submitted to the MAF, the MA of the RDP, according to the requirements of the Regulation No. 23 of the MAF by February 15 next year.

At the end of each quarter during the first year, and semi-annually for each consequent year, within 14 days of the expiration of such period, the LAG shall submit to the Managing Authority of the RDP a request for approval of activities and expenditure for the respective reporting period, together with a report on completed activities during the same period (according to Annex No. 6 of the Regulation No. 23 of the MAF).

(2) The reports and requests under this section shall be drafted by the Executive Director and approved by the MB. The decision of the MB shall be certified by the signature of the Chairperson of the MB.

4. Procedure for the strategy update

The procedure for the update of the LDS is related to its financial parameters. Upon agreement on the total budget of the local development strategy, the LAG may submit an application to the Managing Authority of the RDP requesting an increase of the financial support.

In cases when is deemed as necessary to update the contents of the Strategy of the LAG, including in relation to the revision/update of its financial part, the ED of the LAG, assisted by the office staff, will prepare/update a draft of the LDS and present it at ordinary meeting of the MB. Any update of the LDS may be carried out on annual basis, provided that following the approval of the MB of the LAG, the LDS must be mandatory adopted by the GM of the LAG. Following the adoption of the changes /updates under the LDS, the ED of the LAG must inform and agree with the Managing Authority any changes/updates made in accordance with the provisions of the Regulation No. 23. Any updating of the LDS will be made only within the limits of eligible opportunities and rules, effective pursuant to the Regulations on implementation of the RDP and the LEADER approach. Following the updating of the LDS, the office staff of the LAG is obligated to inform via its own information channels the local community the territory of the LAG on such strategy update made. The overall process for the update of the LDS, as well as the general rules and procedure for performance thereof, will be carried out in strict compliance with the publicity and transparency principles.




VIII. Compliance with EU-horizontal policies The development strategy of the LAG was developed in line with the current needs of the region and in the same time it was shaped in compliance with the objectives of the Rural development plan of Bulgaria over the period 2007-2013 and the Community policies on economic and social cohesion. The general principles used in this Strategy are those for environmental protection and compliance with the gender equality principle.

1. Gender Equality and Non Discrimination applying the gender equality principle;

contributing to the establishment of equal opportunities principle;

creation of conditions for prevention of discrimination.

Within the implementation period of the Strategy, the office staff of the LAG, as well as the Manager and any governing bodies of the LAG will respect and comply with the gender equality principle. During the evaluation process in relation to the projects as a horizontal policy rule will be applied the equal gender participation and non-discrimination on the basis of gender identity. In addition, the Strategy will adhere to the gender equality principle and non-discrimination on the basis of creed (religious belief), ethnic origin, political belief and social status. There will be provided sufficient tools and channels for the purposes of the prevention of discrimination, including through the webpage of the LAG.

2. Sustainable development (environmental protection)

The measures under the strategy will contribute to the fulfillment of the norms, adopted by Bulgaria in relation to the Kyoto Protocol and the Convention to Combat Desertification of land areas. The restoring forestry potential and introducing prevention actions is in compliance with the priorities defined by the Ministerial Conference on the Protection of Forests in Europe, EU Forestry Strategy and Forest Fire Protection Plan. The sustainable management of the private and municipal forests and the conservation of the forest biodiversity will contribute to the successful implementation of the EU forestry strategy.

The implementation of the environmental protection principle will be encourage through an overall shift of the attitudes and awareness of the population on the territory of the LAG towards the importance of eco-friendly attitude to the environmental issues, and through the use of specific criteria for project evaluation, which will assess and rank the initiatives at local level also according to this important criterion.

3. Encouraging Job Creation and Competitiveness

The encouragement of job creation on the territory of the LAG is a leading horizontal principle, which will be supported and complied with during the entire implementation period of the LDS. This principle is not a policy notion only, but it is one of the general objectives within the strategy framework. One of the main criteria to be used in the evaluation of the projects at a local level must establish whether, or to what extent any local initiative, financially supported under the LDS, is creating new jobs in the local economy. On the other hand, the strategy will support projects, which are promoting innovations and improving the competitiveness on the territory and of the resulting products.




4. Complementarity with Structural Funds Programmes

The scope of the development strategy for the territory of the LAG is adapted to the planning period of the European Union, and namely, over the period 2007-2013. In this regard the measures and activities of the LDS will be implemented by taking into consideration of all seven Operational Programmes and the Rural Development Programme.

Rural Development Programme – The measures and activities under the Local Development Strategy for the area covered by Belovo, Septemvri, Velingrad are in full compliance with and are complemented with objectives and measures under:

Axis 1 “Development of competitive and innovation-based agriculture, forestry and food processing industry”

Axis 3 “Improvement of quality of life and diversification of job opportunities in rural areas” of the Rural Development Programme

OP Regional development – the objective of the programme is to enhance the quality of life, with better accessibility to the basic services and new opportunities for improved competitiveness and sustainable development. The Priority axis 1 of the programme will be complemented for the territory of the LAG by activities under the measure 321 and the measure 322 of the RDP. Under this programme by the Velingrad Municipality a priority will be given to the renovation of the municipal infrastructure, including the renovation of the central part and parks of the town, while under the LDS, through the measure 321 и the measure 322 it will be contributed to the renovation of the territory of the other two municipalities – Belovo and Septemvri. A complementarity is ensured also with the Priority axis 3 of the OP “RD” and Priority 2 of the LDS. The tourism development under the LDS will be supported and complemented through the measures 311 and 312 of the RDP on the entire territory. The measure 313 “Encouragement of tourism activities” will complement the tourism development for the entire territory of the LAG.

The investment section of the Priority 4 of the Operational Programme „Regional development” (especially the Operation 4.1) is complementing and is closely related to the Priority axis 2 of the LDS “Favorable basic and social infrastructure in support of integrated rural tourism”. The funds under the Operation 4.1 will be used only for the improvement of public educational, healthcare and technical business infrastructure in the Velingrad Municipality. The types of activities mentioned above will not be supported under the LDS.

The LDS, through the measure 421 of the RDP, will support the cooperation of the LAG with other LAGs in this country and abroad, and the OP “Regional development” provides opportunities to implement this at municipal and district level.

OP Transport – in the South planning region, part of which are the three municipalities Belovo, Septemvri and Velingrad, there will be reconstructed and renovated designated sections of the Trakia Motorway, as a part of the so-called Trans-European road network – these are sections of motorways and high-quality roads of international importance, which provide transport communication links with EU member states. However, no funds under this programme will be granted for the roads of classes II and III, which are the Republican roads on the territory of the three municipalities. The LDS will contribute to the improvement of access to the rural areas, through interventions in the country roads on the territory of the LAG.

OP Environment – the achievement of the overall objective of the programme - to protect, improve and restore the natural environment and develop environmental infrastructure, will be supported through the activities under the measures of Priority 2 of the LDS – recovery and rehabilitation of ravines and ditches in the localities, as well as through creation of walking routes and eco-trails under the measure 323 “Conservation and upgrading of




the rural heritage”, as well as through the measure 226 “Restoring forestry potential and introducing prevention actions”.

The issue for improvement of the competitiveness of the small- and medium-sized enterprises will be addressed through making use of the Operational Programme “Development of the Competitiveness of the Bulgarian Economy”. The overall objective of this programme is the development of a dynamic economy, competitive at the European and world markets. By applying under this programme with projects the companies may receive up to 50 % of the funds for their projects, aiming at encouraging the innovations and increasing the efficiency of the enterprises. The LDS will support financially micro-, small- and medium-sized enterprises on the territory, through measure 123 „Adding value to agricultural and forestry products” and measure 312 „Support for the creation and development of micro-enterprises” of the RDP and thus will contribute to the achievement of this objective.

The scope of financial support, provided under the measures of the LDS, will not overlap with the scope of support by the grant schemes under the Operational Programmes, implemented in Bulgaria. The LAG will conduct cross-checks aiming at prevention of any double funding between the LDS and other available grant schemes. Any project under the LDS, which potentially falls within the scope of other grant schemes, will be subject of verification checks for double funding, prior to the final project approval.

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LOCAL DEVELOPMENT STRATEGY within the territory of the …deathstar.cybcom.net/~migbelovo/wp-content/uploads/2012/... · 2012-01-21 · the one with smallest population is Dolno Varshilo