Practical Implementation Guideline - Sanayi

Practical Implementation Guideline

2

This Guideline has been prepared by the Project Management Department of Ministry of Industry and Technology

and available at http:// rekabetcisektorler.sanayi.gov.tr

Please note that in the case of any inconsistencies between this Guideline and the Contract and its annexes, the Contract overrules and remains as the legally binding

document.

The contents of this publication can in no way be taken to reflect the views of the European Union.


3

Table of Contents ANNEX TABLE ............................................................................................................................................. 6

GLOSSARY OF TERMS ................................................................................................................................ 9

EXECUTIVE SUMMARY ............................................................................................................................. 12

CHAPTER 1 - INTRODUCTION .................................................................................................................. 13

1.1. MANAGEMENT STRUCTURE ............................................................................................................. 14

CHAPTER 2 - LEGAL AND INSTITUTIONAL FRAMEWORK ......................................................................... 15

2.1 INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA) ...................................................................... 15

2.2 COMPETITIVE SECTORS PROGRAMME (CSP)..................................................................................... 16

2.3 MAIN BODIES RELEVANT FOR IMPLEMENTATION OF CSP AND PROJECTS ....................................... 19

2.4 THE PROJECT CYCLE ........................................................................................................................... 20

CHAPTER 3 - MAIN RESPONSIBILITIES OF END RECIPIENT OF ASSISTANCE (ERA)................................... 21

3.1 MAIN RESPONSIBILITIES OF ERAs ACCORDING TO THE OPERATIONAL AGREEMENT ....................... 21

3.2 ESTABLISHMENT OF OPERATION COORDINATION UNIT (OCU) ........................................................ 22

3.3 OVERVIEW RESPONSIBILITIES OF ERAs ............................................................................................. 22

CHAPTER 4 - IMPLEMENTATION OF SERVICE CONTRACTS ..................................................................... 22

4.1 OVERVIEW ......................................................................................................................................... 22

4.2 GUIDANCE NOTE TO ERAs ................................................................................................................. 24

4.2.1 TERMS of REFERENCE for PROPER IMPLEMENTATION .............................................................. 25

4.3 MAIN RESPONSIBILITIES OF ERAs FOR IMPLEMENTATION OF SERVICE CONTRACTS ....................... 25

4.4 IMPLEMENTATION of SERVICE CONTRACTS ...................................................................................... 27

4.4.1 COMMENCEMENT OF THE CONTRACT AND KICK-OFF MEETING OF THE PROJECT ................... 27

4.4.2 REGULAR MEETINGS ................................................................................................................... 28

4.4.3 FORMAT OF MINUTES OF MEETINGS ......................................................................................... 29

4.4.4 ATTENDANCE of ERA to MEETINGS in SERVICE CONTRACTS ..................................................... 30

4.5 REPORTS ............................................................................................................................................ 30

4.5.1 INCEPTION REPORT .................................................................................................................... 32

4.5.2 SIX-MONTHLY PROGRESS REPORTS............................................................................................ 33

4.5.3 FINAL REPORT ............................................................................................................................. 34

4.6 FORMAL APPROVAL for ALL TYPES of REPORTS by ERA .................................................................... 35

4.6.1 APPROVAL of EXPERTS TIMESHEETS by ERA .............................................................................. 36

4.6.2 APPROVAL of the NON-KEY EXPERTS BY ERA ............................................................................. 37

4.6.3 PRE APPROVAL of INCIDENTAL BUDGET .................................................................................... 38

4.7 CONTRACT MODIFICATIONS.............................................................................................................. 39

4.7.1 ERA’s ROLE in CONTRACT MODIFICATIONS ............................................................................... 40


4

4.7.2 ERA’S ROLE IN REPLACING THE KEY EXPERT............................................................................... 40

CHAPTER 5 - IMPLEMENTATION OF SUPPLY CONTRACTS ....................................................................... 42

5.1 OVERVIEW ......................................................................................................................................... 42

5.1.1 GUIDANCE NOTE TO ERAs .......................................................................................................... 42

5.2 IMPLEMENTATION ............................................................................................................................. 42

5.2.1 COMMENCEMENT ...................................................................................................................... 42

5.2.2 TASKS OF OS/CA & ERA BEFORE DELIVERY OF SUPPLIES ........................................................... 42

5.2.3 TIMETABLE (IMPLEMENTATION PROGRAMME) ........................................................................ 43

5.2.4 SPOT CHECK AFTER PRE-FINANCING PAYMENT ......................................................................... 43

5.2.5 MODIFICATIONS ......................................................................................................................... 44

5.2.6 COMMITTEE FOR INSPECTION &TESTING, PROVISIONAL & FINAL ACCEPTANCE ...................... 44

5.2.7 INSPECTION AND TESTING ......................................................................................................... 44

5.2.8 PROVISIONAL & PARTIAL ACCEPTANCE...................................................................................... 44

5.2.9 FINAL ACCEPTANCE .................................................................................................................... 45

CHAPTER 6 - IMPLEMENTATION OF WORKS CONTRACTS ...................................................................... 45

6.1 OVERVIEW ......................................................................................................................................... 45

6.2 IMPLEMENTATION ............................................................................................................................. 46

6.2.1 PARTIES ....................................................................................................................................... 46

6.2.2 RELATION BETWEEN THE PARTIES ............................................................................................. 46

6.2.2.1 RELATION BETWEEN OS/CA AND ERA ..................................................................................... 46

6.2.2.2 RELATION BETWEEN OS/CA AND FIDIC ENGINEER ................................................................. 48

6.2.2.3 RELATION BETWEEN CONTRACTOR AND ERA ......................................................................... 48

6.2.2.4 RELATION BETWEEN FIDIC ENGINEER AND ERA ..................................................................... 48

6.2.3 ATTENDANCE AT MEETINGS ....................................................................................................... 49

6.2.4 STEERING COMMITTEES ............................................................................................................. 50

6.2.5 ON THE SPOT CHECKS ................................................................................................................. 50

6.2.6 RESPONSIBILITIES AND DUTIES OF THE ERA ............................................................................... 52

6.2.7 REPORTING ................................................................................................................................. 53

6.2.8 COMMENCEMENT OF WORKS ................................................................................................... 53

6.2.9 TAKING OVER CERTIFICATE ........................................................................................................ 53

6.2.10 FINAL ACCEPTANCE .................................................................................................................. 55

6.3 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS ........................................................................ 57

CHAPTER 7 - FINANCIAL MANAGEMENT AND REGULATIONS ON TAX EXEMPTIONS ............................. 57

7.1 FINANCIAL MANAGEMENT ................................................................................................................ 57


5

7.1.1 FINANCIAL MANAGEMENT RELATED FUNCTIONS OF ERAS DURING THE IMPLEMENTATION

PHASE OF THE CONTRACT ................................................................................................................... 57

7.1.2 FINANCIAL MANAGEMENT RELATED FUNCTIONS OF ERAs FOLLOWING THE SUBMISSION OF

AN INVOICE BY THE CONTRACTOR/ CONSULTANT ............................................................................. 58

7.2 REGULATIONS ON TAX EXEMPTIONS ................................................................................................ 59

7.2.1 IMPLEMENTATION OF VAT EXEMPTION .................................................................................... 59

7.2.2 IMPLEMENTATION OF STAMP TAX EXEMPTION ........................................................................ 60

7.2.3 IMPLEMENTATION OF TAX EXEMPTION IN IMPORTS AND CUSTOMS PROCEDURES ................ 60

7.2.4 IMPLEMENTATION OF INCOME AND CORPORATE TAX EXEMPTION ......................................... 60

7.2.5 IMPLEMENTATION OF INHERITANCE AND TRANSFER TAX EXEMPTION .................................... 61

7.2.6 IMPLEMENTATION OF SPECIAL COMMUNICATION TAX ............................................................ 61

7.2.7 IMPLEMENTATION OF MOTOR VEHICLE TAX EXEMPTION ........................................................ 61

7.2.8 SUMMARY OBLIGATIONS OF ERAS RELATED TO REGULATIONS ON TAX EXEMPTIONS: ........... 62

CHAPTER 8 - MONITORING OF PROJECTS/OPERATIONS BY ERAS .......................................................... 62

8.1 INTRODUCTION ................................................................................................................................. 62

8.2 WORKING CONCEPTS: ACHIEVING A FAIR AND COMMON UNDERSTANDING ABOUT THE TASK .... 63

8.3 REGULATORY FRAMEWORK: WHY DO ERAS NEED TO MONITOR THEIR RESPECTIVE OPERATIONS?

AND WHY DOES THE OS/CA NEED TO HAVE THE MONITORING INFORMATION FROM ERAs? .............. 65

8.4 PROCEDURES FOR MONITORING THE PERFORMANCE OF OPERATIONS FUNDED UNDER THE CSP 67

8.4.1 THE MANAGEMENT INFORMATION SYSTEM (MIS) ................................................................... 67

8.4.2 THE PRODUCTION OF A THREE-MONTHLY PROJECT MONITORING REPORT (PMR) .................. 67

8.4.3 BASIC CONTENTS OF THE PROJECT MONITORING REPORT ....................................................... 69

8.4.4 REPORTING PROCEDURE ............................................................................................................ 70

8.4.5 TIME SCHEDULE FOR MONITORING REPORTS SUBMISSION...................................................... 72

CHAPTER 9 - HORIZONTAL ISSUES ........................................................................................................... 72

9.1 PUBLICITY........................................................................................................................................... 72

9.2 INTERNAL CONTROL, IRREGULARITIES AND AUDITS ......................................................................... 75

9.3 ARCHIVING PROCEDURES FOR ERAs ................................................................................................. 77


6

ANNEX TABLE

ANNEX 1: INSTRUCTIONS HOW TO UPDATE/REVISE THE GUIDELINE

ANNEX 2: CONTACT INFORMATION

ANNEX 3: TEMPLATE FOR TIMESHEETS

ANNEX 4: TEMPLATE - REQUEST FORM FOR APPROVAL OF NON-KEY EXPERTS

ANNEX 5: TEMPLATE - APPROVAL REQUEST FOR INCIDENTAL EXPENDITURE

ANNEX 6: TEMPLATE - KICK-OFF MEETING AGENDA FOR ALL TYPES OF CONTRACTS

ANNEX 7: TEMPLATE - GENERAL MEETING AGENDA FOR ALL TYPES OF CONTRACTS

ANNEX 8: TEMPLATE - INVOICE IDENTIFICATION CONTROL SHEET FOR ERAs

ANNEX 9: MANAGEMENT INFORMATION SYSTEM (MIS) USER MANUAL

ANNEX 10: SUMMARY - GENERAL INFORMATION ON PAYMENT RULES AND PROCEDURES

ANNEX 11: TEMPLATE - MONITORING REPORTS BY END RECIPIENTS


7

List of Abbreviations and Acronyms

AC Advisory Committee

CA Contracting Authority

CSP Competitive Sectors Programme

CISOP Competitiveness and Innovation Sector Operational Programme

EC European Commission

ERA End Recipient of Assistance

EU European Union

EUD The Delegation of the European Union to Turkey

EUR Euro (currency)

FA Financial Agreement

FMD Financial Management Department

FIDIC International Federation of Consulting Engineers

FWC Framework Contract

HoS Head of the Operating Structure

MIS Management Information System

IPA Instrument for Pre-Accession Assistance

KE Key Expert

DoEU Directorate of EU Affairs

MoIT Ministry of Industry and Technology

MIS Management Information System

NAO National Authorizing Officer

NIPAC National IPA Coordinator

OA Operational Agreement

OIS Operation Identification Sheet

OP Operational Programme

OS Operating Structure

OCU Operation Coordination Unit


8

OCUD Operation Coordination Unit Director

SPMED Strategic Programming, Monitoring and Evaluation Department

PMD Project Management Department

PRAG Practical Guide to Contract Procedures for EC External Actions

QACD Quality Assurance and Control Department

RCOP Regional Competitiveness Operational Programme

SC Steering Committee

SMC Sectoral Monitoring Committee

SR Senior Representative

SRER Senior Representative of End Recipient

TA Technical Assistance

TAT Technical Assistance Team

TD Tender Dossier

TL Team Leader

ToR Terms of Reference

TS Technical Specifications


9

GLOSSARY OF TERMS

Contractor/Consultant/Supplier The Contracting Company, Joint Venture or Consorsium

responsible for the implementation of service, supply,

supervision and works contracts within the framework of the

Operation under IPA funds

Financing Agreement An annual or multi-annual agreement concluded between the

Commission and an IPA II beneficiary, for implementing the

Union's financial assistance through an action falling within the

scope of IPA Regulation

Framework Agreement An arrangement concluded between the Commission and an IPA

II beneficiary applying to all IPA II policy areas and laying down

the principles of the financial cooperation between the IPA II

beneficiary and the Commission under IPA Regulation

IPA Financial Instrument of EU to support candidate and pre-

candidate countries for EU Membership for accession into the

European Union (literally “Instrument for Pre-Accession”). See

http://ec.europa.eu/regional_policy/thefunds/ipa/index_en.cfm

IPA Regulation Implementing Council Regulation (EC) No 1085/2006 establishing

an instrument for pre-accession assistance

Practical Guide (PRAG) Practical Guide to Contract Procedures Financed from the

General Budget of the European Communities in the context of

External Actions, EU Guide for public procurement and contract

management (latest edition 2019, see

http://ec.europa.eu/europeaid/prag/?header_description=DEV

CO+Prag+to+financial+and+contractual+procedures+applicable+

to+external+actions+financed+from+the+general+budget+of+th

e+EU+and+from+the+11th+EDF&long=55050&header_keyword

s=ePrag%2C+europa

Operational Agreement (OA) The agreement between ERA and Operating Structure

regarding responsibilities of both parties for implementation of

the operation

Operation Coordination Unit (OCU) Body defined in the Operational Agreement for an IPA

Operation as representing the End-Recipient. In some other

programs it is called the Project Implementation Unit (PIU)

Operation Identification Sheet A project fiche in a template for project proposals

Operating Structure The Operating Structure for IPA defined in the IPA Implementing

Agreement that are detailed in Article – 10 of IPA II Implementing

http://ec.europa.eu/regional_policy/thefunds/ipa/index_en.cfm

http://ec.europa.eu/europeaid/prag/?header_description=DEVCO+Prag+to+financial+and+contractual+procedures+applicable+to+external+actions+financed+from+the+general+budget+of+the+EU+and+from+the+11th+EDF&long=55050&header_keywords=ePrag%2C+europa






10

Regulation and Annex A (Clause 4) of the Framework Agreement.

For the Competitiveness and Innovation Sector Operational

Programme it is the Competitiveness and Innovation Sector

Operational Programme EU Financial Programmes Directorate

within the Ministry of Industry and Technology

End-Recipient of Assistance (ERA) End Recipient of Assistance is the institution/organization

that submits the project (operation) which is supported under the

CISOP as per Article 10 of General Conditions of IPA II Financing

Agreement

Technical Assistance Team (TAT) The team of experts of the Services Consultant or

Supervision Consultant for Works contracts; In case of the

supervision it will empower and individual employee to act as the

Engineer under FIDIC Conditions of Contract

FIDIC Organization A worldwide organization of consulting engineers based in

Switzerland which amongst other things publishes model works

and service contracts

FIDIC 1999 Yellow Book A format of Works Contract where the Contractor designs and

builds the Works but does not take the liability for

“unforeseeable risks”

FIDIC 1999 Red Book A format of Works Contract where the Contractor builds the

Works to design drawings provided by the Employer, but does not

take the liability for “unforeseeable risks”

FIDIC Engineer The person employed by the TAT and defined at section 3.1 of

both Red & Yellow Book Works Contracts who supervises the

construction design and construction on behalf of the Employer

Contractor’s Representative The person defined at section 4.1 of both Red & Yellow Book

Works Contracts who manages the design and construction on

behalf of the Contractor

Interim Payment Certificate A claim for payment under Red or Yellow FIDIC made by the

Contractor and approved by the FIDIC Engineer usually on a

monthly basis (IPC)

Variation A variation determined by the FIDIC Engineer for varied works or

time for completion under the Contract


11

Steering Committee A committee set up for an IPA operation to steer its

implementation until completion. It shall consist of members of

the Operating Structure, members of the ERA and other relevant

institutions

Service Contract A contract for the provision of consultancy, studies (TA) and site

supervision services (supervision) under the rules of the

European Union as set down in the published procedures

Supply Contract A contract for the supply of goods under the rules of the

European Union as set down in the published procedures


12

EXECUTIVE SUMMARY

This Practical Implementation Guideline for CSP is intended to provide guidance and recommendations

about the implementation of the projects that will be applied to the projects under CSP in Turkey. It

describes basic principles of minimum implementation rules and procedures based on the experience of

the Contracting Authority and lessons learnt in the previous EU projects and IPA I period.

The Guideline incorporates the changes introduced through July 2019 version of PRAG.

This Guideline will assist both the End Recipients of Assistance and other stakeholders to ensure the

effectiveness of project implementation, which contributes to the impact of IPA in improving the business

environment and strengthening research, technologic development and innovation as well as building the

capacity of human resources and institutions.

The purpose of this Practical Implementation Guideline CSP is to provide key points to the End Recipients

of Assistance and other stakeholders with a swift and accessible reference to ensure that projects

supported under CSP are implemented in an efficient manner. Practical Implementation Guideline CSP

covers the areas of Project Cycle, Implementation, Reporting, Monitoring & Evaluation, Internal Control &

Irregularities and Audit as well as Management Information System (MIS) of the CA.


13

CHAPTER 1 - INTRODUCTION

A new financial assistance system, IPA (Instrument for Pre-accession Assistance), is introduced by EU in 2007 to provide efficient funding to candidate or potential candidate countries which aims to prepare the candidate countries to the structural funds of EU.

In accordance with Council Regulation No 1085/2006 of 17 July 2006 establishing this new financial

assistance system, then Ministry of Science, Industry and Technology (MoSIT) has been assigned in

2012 as the Operating Structure (OS) responsible for preparing, managing and implementing the

Regional Competitiveness Operational Programme (RCOP). The objective of the RCOP was to ensure

social and economic development to reduce regional disparities in Turkey through enhancing SMEs'

competitiveness, and thus to converge our economy with the economy of the EU.

The Ministry of Industry and Technology undertook the role of being the Program Authority to prepare

and implement "Regional Competitiveness Operational Programme" for the 2007-2013 period

and "Competitiveness and Innovativation Sector Operational Programme" for the 2014-2020

period. Competitive Sectors Programme (CSP) is defined as an umbrella brand that covers both of

these periods.

Carried out since 2007 in the framework of the financial cooperation between Turkey and the

European Union, the RCOP provides financial and technical support to projects elaborated in various

priority areas that are also stated in Turkey's National Development Strategy. For further information

on RCOP please refer to https://rekabetcisektorler.sanayi.gov.tr/tr/

According to the Commission Decision dated 15 February 2012, conferral of management for the

tendering, contracting and financial functions was transferred to the MoIT as the Contracting Authority

(CA) for all contracts funded and implemented under this programme. As of 2013, the RCOP has been

revised as CSP.The Directorate of EU Financial Programmes of the Ministry of Industry and Technology

acts as Operating Structure and Contracting Authority for all contracts signed under CISOP 2014-2020.

As such MoIT signs an Operational Agreement (OA) with the End Recipients of Assistance (ERAs) for

the implementation of the projects and contracts.

The first phase of this financial cooperation, which is an important element of Turkey and EU relations,

was implemented in 2007-2013 period under the name IPA I. In this period, financial resources were

allocated to projects having diverse aims ranging from meeting the competitive needs of SMEs in the

manufacturing sector to establishing common use facilities, and from providing grounds and resources

to innovative technologies to improving the tourism infrastructure.

In the new period of the Programme under IPA II covering 2014-2020, financial support is planned to

be provided to various projects from all regions of Turkey aiming to increase competitiveness in

economy, particularly R&D and innovation projects.

As in other projects, IPA projects has also a phased structure composed of programming, procurement

(tendering), implementation and monitoring as explained in detail under 2.4. of this Guideline. The

concepts of project and operation are used interchangeably through this Guideline.

https://www.sanayi.gov.tr/?lang=tr

https://rekabetcisektorler.sanayi.gov.tr/tr/


14

1.1. MANAGEMENT STRUCTURE

Directorate of EU Financial Programmes under the General Directorate of European Union and Foreign Affairs is responsible for the implementation and coordination of the CSP within the scope of the cooperation between the Government of the Republic of Turkey and the European Union.

In this context; Directorate of EU Financial Programmes, as the Operating Structure, performs the activities listed below:

Determines the content and intervention areas of multi-annual sectoral operational programs, Designs and manages project call process processes, ensures that projects to be funded are

selected and approved in accordance with program objectives and pre-determined criteria, Ensures the maturing of the projects to be funded with the beneficiary organization and

preparation of tender files for the projects, Realizes the tenders related to the projects according to the European Union Practical

Guidelines(PRAG) and binding them to the contract, Takes the necessary measures for the effective implementation of the contracts, Ensures that the program outcomes be in line with the targets and indicators and takes

necessary measures, Checks the appropriateness of the expenses related to the contract, ensures the payment of

payments, keeps the reporting and accounting records, Ensures that the projects are carried out in accordance with the European Union and Program

visibility rules.

This guideline explains the implementation of projects and contracts (contract management) from all

aspects, technical, administrative and financial in line with the obligations and responsibilities

described in the OA. OA is the main reference document which shall be signed between every single

End Recipient of Assistance (ERA) and the Operating Structure (OS). This agreement covers mainly the

responsibilities of ERAs.

https://ab.sanayi.gov.tr/index.html?lang=tr

https://ab.sanayi.gov.tr/index.html?lang=tr


15

Purpose

This document provides a guide on how to manage a contract, signed between the OS/CA and

consultants/contractors, from the award of the contract until the approval of the final report and final

payment until the closure of the project.

Reference

This Guideline has been prepared by considering the relevant provisions of the IPA regulations and the “Practical Guide to Contract Procedures for EU External Actions (PRAG)”, published on the EuropeAid web site in July 2019. The full version of the PRAG (including relevant annexes) can be found on the following webpage:

http://ec.europa.eu/europeaid/prag/?header_description=DEVCO+Prag+to+financial+and+contractu

al+procedures+applicable+to+external+actions+financed+from+the+general+budget+of+the+EU+and

+from+the+11th+EDF&long=50061&header_keywords=ePrag%2C+europa

Any questions from ERAs regarding the implementation of projects and contracts can be directed to

the CA (see for the relevant contact information).

Contents

The guideline starts in Chapter 2 with a short introduction into Legal and Institutional Framework

under IPA and the CSP. In Chapter 3, an overview of main responsibilities of the ERAs are provided.

The following chapters (Chapter 4,5 and 6) show the implementation provisions regarding Service,

Supply and Works contracts. In Chapter 7, the responsibilities of ERAs regarding financial management

payment function and tax exemptions are described. Chapter 8 continues with the guidelines and

obligations for ERAs regarding monitoring of the operations. Horizontal issues such as EU publicity

requirements and controls and audits are the main topics of Chapter 9. Finally, in the annexes practical

tools such as checklists and the main contacts for any questions regarding this guide are provided.

CHAPTER 2 - LEGAL AND INSTITUTIONAL FRAMEWORK

2.1 INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA)

IPA is the financial instrument for all pre-accession activities funded by the European Commission. The

instrument replaced a number of former EU instruments.

Instrument for Pre-Accession Assistance (IPA) second period covering 2014-2020 will be implemented in the framework of Turkey’s targets which are capacity development in terms of EU acquis alignment and economical and social cohesion. European Commission has introduced the sectoral approach in the new period for the effective utilization of funds. Within the framework of this sectoral approach, instead of the components based structure at the first period of IPA, some priority sectors to be financed and the responsible lead institutions to conduct the sectoral preparations have been identified. Reference documents which set the legal basis for IPA II:

- IPA II Regulation was published on 15 March 2014





16

- Rules of Application was published on 3 May 2014

The main document of this new period indicating the financing priorities of assistance under IPA is the Indicative Strategy Paper for Turkey (2014-2020), which was adopted by the Commission on 26 August 2014. The total allocation for Turkey under IPA II for 7 years amounts to 3.533 MEUR, as stated in the Country Strategy Paper.

Objectives

The overall objective of IPA is the establishment of institutional capacity towards Turkey’s alignment

with the acquis communautaire and its implementation along with the establishment of capacity for

the economic and social cohesion.

The policy areas and sectorsand the lead beneficiaries as identified for IPA II period:

1. Democracy and Governance, (Ministry of Foreign Affairs-Directorate for EU Affairs)

(Alignment with EU acquis, Union Programmes and Civil Society)

2. Rule of Law and Fundamental Rights, (Ministry of Justice, Ministry of Interior and Ministry of Foreign Affairs-Directorate for EU Affairs))

3. Environment, (Ministry of Environment and Urbanization)

4. Transport, (Ministry of Transport, Maritime Affairs and Communications)

5. Energy, (Ministry of Energy and Natural Resources)

6. Competitiveness and Innovation, (Ministry of Industry and Technology)

7. Employment, Human Resources Development and Social Policies, (Ministry of Labor and Social Security)

8. Agriculture and Rural Development, (Ministry of Food, Agriculture and Livestock)

9. Territorial Cooperation (Ministry of Foreign Affairs-Directorate for EU Affairs)

2.2 COMPETITIVE SECTORS PROGRAMME (CSP)

Competitive Sectors Programme (CSP) is defined as an umbrella brand that covers both "Regional

Competitiveness Operational Programme" for the 2007-2013 period and "Competitiveness and

Innovativation Sector Operational Programme" for the 2014-2020 period.

Via Regional Competitiveness Operational Programme (RCOP), various types of support were provided

to the provinces with less than 75% national income when compared to the average in Turkey and to


17

the sectors that are important in regional economy. In this period, the aim was to enhance

competitiveness of enterprises and decrease economic disparities among regions.

520 million Euro funding was provided to 46 projects that have been supported under the first phase

of the Competitive Sectors Programme.

In the first period of the Programme, the projects were awarded to respond to the needs of the target

regions and sectors. Projects investing in establishment of facilities for the common use of SMEs and

Entrepreneurs, licensed warehouses, laboratories and R&D centres, as well as projects adding a higher

value to tourism infrastructure and promotion activities, and projects generating financial instruments

for the use of SMEs and entrepreneurs were financed.

Main achievements of these projects can be summarized as follows:

• 3 Techno parks with 22,4 Million Euro budget

• 4 laboratories and research centres with 38 Million Euro budget

• 9 common use facilities with 78 Million Euro budget

• 10 Business Development Centres with 9 projects and 65 Million Euro budget

• 3 licensed warehouses with 28,8 Million Euro budget

• Samsun Logistics Centre with 50 million Euro investment

• 3 Financial Instrument Project

– Turkey's first regional venture capital fund with a 20 million Euro budget

– Turkey's first regional credit guarantee mechanism with 60 million Euro investment and 1 billion Euro volume

– Turkey's first two risk capital funds for R&D and commercialization activities with 50 million Euro budget

• 5 tourism projects with 36,5 million Euro budget

Furthermore,


18

• 3 clustering projects are implemented with 11 Million Euro budget.

• 4 Capacity Building Projects (including 2 project for the Ministry itself) with a budget of 36,5 million Euro are completed.

As for the second phase, namely “Competitiveness and Innovation Sector Operational Programme

(CISOP)", the geographic coverage has been expanded to all of Turkey and a budget of approximately

301 million euros has been allocated from European Union and national resources. The

implementation of projects under the second phase covering the years 2014-2020 will continue until

the end of 2026. With the new projects to be supported under this new phase it is aimed to increase

efficiencies in industry and manufacturing, and to contribute to the reduction of the current account

deficit.

In terms of intervention logic CISOP 2014-2020 consists of three Actions:

1. Action 1 is Private Sector Development;

Activities under Action 1 focus on the transformation of the manufacturing industry, increasing the

value added created in service sectors, boosting entrepreneurship, increasing entrepreneurs’ (start-

ups’) and SMEs’ access to financial resources and supporting SMEs in meeting the business

opportunities green economy offers.

Activity 1.1: Manufacturing Industries

Activity 1.2: Creative Industries

2. Action 2 is Science, Technology and Innovation;

The aim of Action 2 (STI Action) is to improve the functionality of the national innovation ecosystem

by boosting industry engagement in STI through public private partnerships (including but not limited

to university-industry collaboration) and improving SMEs’ innovation management capacity.

Activity 2.1-Research and Development is aimed at strengthening RTDI cooperation and networking

and specialization among firms, research institutions and technology transfer intermediaries for their

R&D activities in technology readiness levels (TRL) between 3 to 6.

Activity 2.2. Technology Transfer and Commercialisation

3. Action 3 is Capacity Building.

The main aim of this Action is twofold: first, to support the successful implementation of the CISOP in

line with the programme objectives and the IPA II legislation and secondly to increase the institutional

capacity for the proper implementation of the relevant Acquis and for the adoption of fully-fledged

sector approach.

Activity 3.1: Technical Assistance for System Operators and Publicity of the CISOP

Activity 3.2: Acquis and Sector Approach related Institution Building Activities.


19

For detailed information on CISOP kindly please refer to https://rekabetcisektorler.sanayi.gov.tr/media/dokumanlar/CISOP_Turkey_Amendment_1_kOV7QSd.pdf

2.3 MAIN BODIES RELEVANT FOR IMPLEMENTATION OF CSP AND

PROJECTS

Important bodies for the management of projects and contracts for CSP are:

The Delegation of the European Union to Turkey (EUD)

Operating Structure (the Ministry of Industry and Technology, CSP-PMD)

Contracting Authority (CA, the Ministry of Industry and Technology, CSP-PMD)

End Recipient of Assistance (ERA)

The Contractor/Consultant

Each of these bodies has a role regarding the implementation of the projects and contracts. In the

following scheme the relation between these bodies is illustrated.

Figure 1: Bodies relevant for implementation of CSP projects and contracts

The EUD provides advice to the OS and acts as an observer in the different meetings organised within

the period of procurement and implementation of the project and contracts. The EUD undertakes ex-

ante controls on all tender documents for procurement and monitors the projects during contract

management.

The OS is responsible for the overall management of the operational programme including project

pipeline development, project selection and monitoring the programmes and projects achievements.

The OS organizes twice a year Sectoral Monitoring Committee meetings to present and discuss the

Contracting Authority

Operating Structure (MoIT)

Consultant/Contractor/Supplier

Steering Committee

EUD, OS, ERA, other

Subcontractors

TAT:

Team Leader,

Experts etc.

End Recipient

OCU

Contract

Management

and payments

Consortium

Partners

Daily Management

pre - checks

Supervising

Engineer

(for works only)

https://rekabetcisektorler.sanayi.gov.tr/media/dokumanlar/CISOP_Turkey_Amendment_1_kOV7QSd.pdf

https://rekabetcisektorler.sanayi.gov.tr/media/dokumanlar/CISOP_Turkey_Amendment_1_kOV7QSd.pdf


20

achievements of the operational programme and its operations with the participation of high level

officials from EU, EUD and Turkey.

Contracting Authority performs the following main tasks:

The Quality assurance and control of tendering and procurement documents;

Tendering and procurement of the contracts;

Contract management/Implementation of contracts;

Financial Management and Accounting;

Monitoring and Evaluation of Implementation;

Supervising and coordinating the overall progress and implementation of the operation components;

Verifying the achievements of the operations and discussing actions to be undertaken etc.

In addition to the responsibilities of the ERA during programming and procurement, in the

implementation periodERA is responsible for the day to day management of the operation and

component(s) / contract(s) as defined under the operation. The ERA provides monitoring reports

regarding the physical and financial progress of the operation to the OS. ERA reviews documents from

the consultant/contractor and provides pre-checks/ first approvals of reports or any requests from the

consultant/contractor and communicates these with the CA. The summary of responsibilities of ERAs

are described in relevant Chapters of this Guideline in detail.

2.4 THE PROJECT CYCLE

Projects (operations) go through several phases from formulating the project concept (idea) until

closure of the project. These phases are shown in picture 2 below:

Figure 2: Cycle of projects

The first phases consist of project development based upon the needs identified. Projects are

presented in the format of Operation Identification Sheet, like a Project fiche, provided by the

Operating Structure. Following the evaluations of the OISs by the CA, the list of OIS is presented to EU

Delegation to Turkey. After approval of the list of OIS by EUD, a protocol is signed between the ERA

and the OS. This is followed by OIS maturation period. During this period, ERA staff involved in the

operation and PMD staff members work very closely to finalise the OIS document. Once it is deemed

Project

conceptOIS Procure-

ment

Implementation ClosureNeeds

More

Information

Needs, concept development,

partner search

Screening/Prioritisation

More mature

Project

Project

proposal &

approval

1 2 3 4

Contract management &

monitoring

5Sign. Oper.

Agreement

Tender dossier

preparation &

procurement

6Contract

signature


21

as acceptable by the CA, it is presented to the EU Delegation. Following the “no objection” decision of

the EU Delegation in consultation with the EC services in Brussels, the OA is signed between the SRER

and the HoS. In case the OIS is not granted “no objection” decision in the first submission, the

comments are transmittedto the ERA for revisions. Depending on the nature of the operation and

complexity, theserevisions cause delays in OIS approval. However, it should not exceed the time period

set in the Protocol. At this stage, ERA staff involved in the operation is expected to be dedicated to the

OIS maturation. After the OA is signed, the procurement phase starts for the components under the

project (operation). The critical point here is to pay utmost attention for synchronization of the

components in line with the design of the operation. For example, if the TA Team is expected to

supervise the delivery of supply items and assist the provisional and final acceptance of the items, then

it’s evident that the supply contract should start in a reasonable time before the end of TA contract.

All relevant technical tender documents are prepared either with resources of the ERA itself or with

support of the OS PMD staff members. The CA carries out in this phase the procurement in conformity

with PRAG procedures for the services, supply or works contracts. After the bids from tenderers are

received and evaluated, the contract with the awarded firm is signed.

From that moment on (after contract signature) the implementation of the contract starts. The project

is considered to be closed after the last contract is finalised.

CHAPTER 3 - MAIN RESPONSIBILITIES OF END RECIPIENT OF

ASSISTANCE (ERA)

3.1 MAIN RESPONSIBILITIES OF ERAs ACCORDING TO THE

OPERATIONAL AGREEMENT

End Recipient of Assistance (ERA) is defined as the institution/organisation supported from the

Programme funds in accordance with Article 10 of General Conditions of IPA II Financing Agreement

and IPA Implementing Regulation1 that initiates and participates in the implementation of the

Operation, benefits from it, and in charge of its sustainability.

The purpose of this OA is to define the rights, obligations and responsibilities of the OS/CA and ERAs

in the efficient and timely implementation process of name of project/operation, operation submitted

by (name of ERA) in the framework of the CSP (Please see OA for further information).

ERA determines a high level representative for effective and timely implementation of operation

activities.

Aforementioned representative is called as the Senior Representative of the End Recipient (SRER).

SRER is a high-level representative of the ERA pursuant to her/his rights under this Agreement who

ensures that the ERA complies with all responsibilities and obligations laid down in this Agreement and

in liaison with the Operating Structure makes sure that the Operation is implemented in accordance

with the principle of sound financial management (Please see OA for further information).

1https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/pdf/financial_assistance/ipa/2014/20140502-

commission-implementing-reg-on-ipa2_en.pdf

https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/pdf/financial_assistance/ipa/2014/20140502-commission-implementing-reg-on-ipa2_en.pdf

https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/pdf/financial_assistance/ipa/2014/20140502-commission-implementing-reg-on-ipa2_en.pdf


22

3.2 ESTABLISHMENT OF OPERATION COORDINATION UNIT (OCU)

SRER also ensures the establishment of the “Operation Coordination Unit (OCU)” and its effective functioning. He/she provides required necessary number of staff with relevant profession and experience so as to establish OCU for efficient and timely implementation of the operation both within the institution and on the spot (at operation implementation location). The ERA sets up the OCU at the latest within 3 months before the signature of the first contract under the operation and sends the job descriptions of staff appointed to work on the operation and the sheet which indicates staff planning that is made for each activity of operation to the CA. The appointment of staff who will work at the OCU and provision of appropriate equipment and office in line with the requirements of the operation are pre-condition for the launch of the operation. This assignment is done in consultation with the OA/CA and with its approval.

The tasks that will be carried out by the OCU cannot be transferred to third parties and their implementation structures.

SRER ensures that duplication in supports of funding for the same project activities (the EU, national or local budgets, and other Multilateral, Bilateral or donor organizations, the World Bank, the UN etc.) is prevented.

3.3 OVERVIEW RESPONSIBILITIES OF ERAs

The details regarding the roles and responsibilities between the OA and CA are clearly defined in Operational Agreement and deeply explained in the following Chapters of this ERA guidelines for implementation. Here you can find the summary of ERA responsibilities set up from Operational Agreement as main headings:

1) Responsibilities related to Technical Preparations of projects and procurement (tender

dossiers); (Please see OA Article 2.2) 2) Responsibilities related to Tendering and Contracting (including attendance at tender

evaluations); (Please see OA Article 2.3) 3) Responsibilities related to Implementation of Service, Works and Supply Contracts (see

Chapters 4,5,6); (Please see OA Article 2.4) 4) Responsibilities related to Financial Management (Payments of contracts) and Tax

Exemption Implications (see Chapter 7); (Please see OA Article 2.5 and 2.5.3)

5) Responsibilities related to Monitoring and Reporting (see Chapters 4,5 and 6 and 8); (Please see OA Aricle 2.6)

6) Responsibilities related to Publicity and Visibility (Chapter 9); (Please see OA Article 7)

CHAPTER 4 - IMPLEMENTATION OF SERVICE CONTRACTS

4.1 OVERVIEW

Service contracts have a wide range of application that covers feasibility studies, economic and market

studies, technical studies, evaluations, audits and supervision. Frameworks, Technical Assistances, and

Supervision Contracts are all service contracts.


23

A service contract may be tendered and implemented in two different ways:

- Global price - always specify the output(s), i.e. the contractor must provide given output(s).

The service will be paid on the basis of the delivery of the specified outputs.

- Fee-based - where the output is unpredictable, or where the workload to achieve the specified

output is impossible to quantify in advance. Therefore it is economically more advantageous

to pay the services on the basis of time actually worked.

Fee-based Contracts

The expected results under this type of contract are normally more general than those required under

a global price contract. The technical assistance to be provided may include tasks such as:

assistance in the management of the activities of an organisation, a department or other such

unit, for example ERA;

day-to-day advice on ad-hoc issues;

institutional building;

institutional and organisational development;

project preparation;

project supervision

facilitation in a multi-stakeholder process

In order to obtain the optimum use of the services available, the CA, ERA and the Consultant, together,

should reach a common understanding and agreement on the specific tasks to be performed, based

upon the terms of reference(ToR), and the expected results. Also, in many cases it may be necessary

to clarify and update issues in the Terms of Reference and this should ideally be affected during the

contract “inception phase”.

Global Price Contracts

For this type of contract, it is usual that the Consultant is expected to produce a “hard” deliverable

such as, a tender dossier, feasibility study, economic or financial study, cost-benefit analysis, works

contract engineering design or technical specification etc. In this instance, the Consultant contracts to

provide the end result as the “deliverable”.


24

Examples of global price activities

Studies, evaluations, audits, organisation of events such as conferences, training sessions. Studies

include a variety of tasks like identification and preparation of projects, feasibility studies, economic

and market studies, technical studies, drafting a legal document, evaluations and audits.

4.2 GUIDANCE NOTE TO ERAs

Many projects suffer from implementation delays leading to late contracting of services, and this

severely damages the efficiency of implementation. There is a significant number of examples, after a

contract is signed, it happens that the Consultant requests a change of key expert(s) In most cases,

while assesing the key expert replacement, if there are severe time constraints for proper

implementation and signature of the contract, instead of re-tendering the Project the CA may have

little option but to agree to a change. This matter i.e. replacement of KEs will be discussed in following

chapters of this guideline. Other example could possibly be a change in OCU members which may also

hamper the implementation in the field.

For efficient and satisfactory project implementation, it is necessary to recognise the importance of

the time limits that apply to all IPA projects and the delays that can occur also prior to signature of

contract for project implementation. It’s the responsibility of the ERA and the Contracting Authority

to respond to unexpected situations and delays in a timely manner during tendering stage.

An example schedule that shows the timeline for a service contract is provided below. Please note

that procedure takes mostly more than 8-9 months. Also note that the period shown applies after ToR

has been approved. Therefore to allow a proper implementation of the project the awareness by ERA

of time constrains are extremely important.

Figure 3: Timeline for an International Restricted Tender Procedure


25

4.2.1 TERMS of REFERENCE for PROPER IMPLEMENTATION

The ToR, as a legally binding document, is part of the service contract signed between the CA and the

Consultant. Thorough preparation of the terms of reference is extremely important for the ultimate

success of the project. Greater effort during project preparation will

save time and money at later stages of the project cycle.

The terms of reference are drafted by the ERAs with the overall

guidance of the Contracting Authority PMD staff members.

The ToR:

Provides background information

Defines the overall and specific objectives and the result to be achieved

Identifies assumptions and risks

Defines the scope of work

Defines the specific activities to be implemented

Defines the project management structure

Defines logistics and timing

Defines the requirements in terms of staff and other inputs

Defines reporting system

Defines monitoring and evaluation arrangements

Defines Visibility Rules

Therefore it is essential for the ERA’s to become fully familiar with the ToR and study the Specific

Activities detailed under Article 4.2 before the commencement of the project.

4.3 MAIN RESPONSIBILITIES OF ERAs FOR IMPLEMENTATION OF

SERVICE CONTRACTS

Establishes and supervises Operation Coordination Unit;

Ensures that the consultant performs the tasks in accordance with the pre-defined deadlines and

to the standard of quality required in the ToR;

Monitors progress of the project both technically and financially;

Notifies the CA about difficulties, deficiencies, on-performance or suspect of irregularity during

contract implementation;

Terms of Reference

IMPORTANT !

Should be clear and concise


26

Issues (suggesting/approving/rejecting) the contract modification requests

(Addendum/Administrative Orders) if needed;

Reviews contractual reports&deliverables and approves;

Participating in the selection process of the non-key experts (review of Experts ToR, CVs and

related supplementary documents of experts) and participation in interviews (if applicable);

Issuing the pre-approval of the Non- Key Expert Approval Requests;

Issuing the pre-approval of the Incidental Budget Approval Requests;

Issuing the approval of the timesheets for Key and Non-key experts;

Attends Progress and Ad-Hoc Meetings;

Participating in on the spot checks and site visits initiated by the CA;

Calls and organizes of the meetings of Steering Committee and if established Advisory Committee

meeting;

Ensures that the consultant performs tasks complying with the rules and principles that are stated

in the Competitive Sectors Programme Communication and Visibility Manual and Communication

And Visibility Manual For European Union External Actions in all written, printed, and visual

materials related to its operation

(https://rekabetcisektorler.sanayi.gov.tr/tr/cati/?bref=RSP1&kref=Dok%C3%BCmanlar&sref=%C

4%B0leti%C5%9Fim%20ve%20Tan%C4%B1t%C4%B1m&dokumanFlag=dokuman and

https://ec.europa.eu/europeaid/work/visibility/_en)

Daily Tasks of ERA for implementation of Service Contracts:

The ERA shall work on daily basis with the Consultant. The ERA is expected to meet the

Consultant at formal weekly meetings. Weekly meetings notes as well as others should be

documented and archived. This should be clarified in the Kick-off Meeting;

The ERA shall continuously keep the Consultant updated on the requirements of the ERA and any

events within the ERA’s organization which may impinge upon the TA’s contract or in on-going

other works or supply contracts;

The Consultant shall continuously keep the ERA updated on project progress and any problems

encountered;

The ERA shall ensure that all correspondence between the Consultant and other stakeholders of

the project shall be copied electronically to the ERA Responsible Staff including the Contract

Manager in the CA (an e-mail group of correspondence is advised to be established by the CA

during the kick-off meetings);

The ERA shall ensure that all correspondence between the Consultant and the CA shall be copied

electronically to the ERA Responsible Staff;

The ERA shall agree dates for steering committee and/or management committee meetings with

the CA;

The ERA and such members ERA, as the CA agrees, shall attend all monitoring meetings of the

projects.

https://rekabetcisektorler.sanayi.gov.tr/tr/cati/?bref=RSP1&kref=Dok%C3%BCmanlar&sref=%C4%B0leti%C5%9Fim%20ve%20Tan%C4%B1t%C4%B1m&dokumanFlag=dokuman


https://ec.europa.eu/europeaid/work/visibility/_en


27

4.4 IMPLEMENTATION of SERVICE CONTRACTS

Service contracts having a wide range of application, covers Technical Assistance Contracts, and

Supervision Contracts. All the operations funded under CSP have Technical Assistance and a few of

them includes Supervision Components as well. As they are all contracted as Service Contratcs under

PRAG, their implementation will be the same.

The documents within the contract are prepared according to PRAG standards and templates which

covers the following sections:

• Upfront contract • Special Conditions • General Conditions (Annex I) • Terms of References (Annex II)

Clarifications (if received any during tendering stage) • Technical Proposal (Annex III)

List and CVs of key experts (Annex IV) • Budget breakdown (Annex V) • Specified forms and other relevant documents (Annex VI) • Tax and Customs Arrangements (Annex VII)

4.4.1 COMMENCEMENT OF THE CONTRACT AND KICK-OFF MEETING OF THE PROJECT

Article 4 of the Special Conditions of Contract provides information on the commencement date of

the service contract. It is recommended that a formal “kick-off” meeting is arranged to be held either

on the same date, or on a date as close as possible to this, to be agreed between the CA, ERA and the

Consultant. An administrative order is issued by the CA to the Consultant stating a date for the

commencement of the contracts and the date of the kick-off meeting. The date, time and location of

the kick off meeting should be formally transmitted to the Consultant by the CA in writing, including

information of the expected participants and the proposed agenda.

All key experts as a TA Team identified and named in the contract, the CA, ERA, the representative of

the EU Delegation as an observer participate in the kick-off meeting on the date stated in the

administrative order issued by CA. The CA and ERA co-chair the kick-off meeting.

The topics to be discussed at the “kick-off” meeting should be, amongst other issues:

introduction of the contracting parties and their personnel who will be involved in the contract;

discussion and agreement on the exact scope of the services to be provided;


28

contract schedule and milestones including those related to mobilisation of the Consultant’s

staff;

any issues relating to proposed staff changes by the Consultant;

any information or other assistance to be provided by the CA to the Consultant, in accordance

with the ToR and the time in which it will be provided;

reporting arrangements;

schedule of meetings and the periods of minutes that should be submitted by one party to the

other;

the period after receipt of minutes within which the

parties should respond to the issuer of such minutes;

schedule for the communication internally and

externally among the parties;

other issues related with the specifics of the contract.

A formal record of the meeting in the format of minutes,

should be prepared by the Consultant.

The minutes of the meeting should be finalised by the Consultant including comments of all parties

within a reasonable time agreed at the kick off meeting. This is generally set as five days. Also in the

meeting it should be agreed that, if no comments recived within the agreed time, the minutes deemed

to be approved.

4.4.2 REGULAR MEETINGS

In the event that the ToR does not identify a specific schedule of progress meetings, it is recommended

that such a tentative schedule (preferably on monthly basis) is agreed either at the “kick-off” meeting

or during the contract inception phase.

Since each contract will contain its own peculiarities, it is

not possible to provide a proposal for all contracts meeting,

however, for fee based contracts it is recommended that a

formal meeting is held at least once per month. During IPA

I period, weekly meetings in a vast majority of the projects

is held. For global price contracts the requirements for

more regular meetings may arise since the achievement of

the Consultants’ outputs very often depends on specific

Action Responsible

Minutes of

Meeting Preparation

Consultant within 5 days

Comments on the Minutes

Participants within 5 days

Revision of Minutes


Approval and Issue of the Minutes

ERA and CA

Action Responsible

Minutes of

Meeting Preparation


Comments on

the Minutes

Participants

within 5 days

Revision of Minutes


Approval and Issue of the Minutes

ERA and CA


29

activities to be achieved by a certain deadline or milestone date. In such cases meetings may require

to be held at shorter and less definite periods. Should the establishment of a steering committee be

required under the ToR then such meetings are often scheduled to coincide with contract reporting

deadline i.e. six-monthly progress reports.

As a general rule, all meetings should be:

based on an agenda;

decision oriented;

as concise as possible with a set agenda and the aim being to resolve a specific issue rather than

engaging in widespread general discussions.

The minutes of the meeting should be made available within a reasonable period after the meeting; in

general it is five days. This period is agreed amongst the CA, ERA and the TA Team during the kick-off

meeting. The minutes of the meeting should be prepared and finalised by the Consultant.

If no such response is received within the given period, it is deemed to be appoved. In case of any comment

given within the defined period, the minutes should be revised by the Consultant if applicable to reflect the

comments and final version of minutes should be distributed to all related parties.

4.4.3 FORMAT OF MINUTES OF MEETINGS

There is no any template for minutes of this type of meetings but it must be easily understandable and

traceable. In general, each Consultant prepares its template in line with EC-TR Visibility Guidelines. The

template must include some key words in accordance with the agenda. It will be practical if the minutes

follows the agenda topics. After each meeting, it is prepared and circulated to by Consultant the e-mail

group mentioned above with the list of participants. The approval timing is explained under the above

Article.

Minutes of meetings shall be:

recorded in a standard format,

kept short and decisions/responsible person who is responsible for carrying out action should

be clearly stated,


30

During contract audits and during the lifespan of the project, minutes of meetings and reports are used, as

the first source of information about the progress of the project. Inadequate minutes or reports are

indication of poor project implementation. ERAs should keep the record of all minutes.

4.4.4 ATTENDANCE of ERA to MEETINGS in SERVICE CONTRACTS

The ERA shall agree a programme of all types of meetings with the CA and the Consultant during the

inception period. While arranging the programme ERA must consider the following;

project milestones

project progress reports (generally six montly for TA or monthly, quarterly, bi-annual (if

specified in the contract for supervision)

meetings can be linked to progress reporting schedule of the project. In such cases, it is

recommended that the subject report should be shared to all participants minimum 10 days before

the meeting to ensure the benefit from the meeting.

ERA must attend all types of meeting, with the prior consent of the CA, the representative of

ERA should attend to the weekly meetings that will be organised by the Supervision Consultant

(Engineer).

ERA may host the meetings providing a proper meeting room, if stated in the ToR, where all the

organisation responsibility will be on the Consultants’.

The meetings can be organised both in Ankara or the Project site. The decision will be taken by

the ERA and Consultant with the consent of the CA.

4.5 REPORTS

The General Conditions (Annex I of the contract, PRAG General Conditions) for Service Contracts

describes the general reporting requirements of the Consultant (Article 26, interim and final reports),

whereas the ToR will identify the more specific reporting requirements. In general it may be expected

that the Consultant should prepare the following, at least:

Inception Report

Six Monthly Progress Reports

Final Report

Any ad-hoc reports

Report Format

AGREE on the KICK OFF Meeting


31

Reports must indicate the best performance of execution including a clear index that provides the

reader with an easily accessible document. Therefore each report at least should have the followings:

Clear and coherent index;

List of on-going and delayed activities, reasons and suggestions for avoiding delays during the

implementation phase in each six monthly progress report;

Recommendations at the end of each reporting period;

A detailed narrative section of methodology used for each activity;

List of activities which are planned for the next reporting period;

A list of all consolidated comments given by whom;

A list of corrections and revisions for comments;

List of contact persons where necessary;

Minutes of meetings where necessary;

Table includes days spent for each expert;

Detailed financial sectiorn (eg. table for incidental budget expenditure);

Consistency not only sequential reports but also all reports Visibility rules;

For fee based contracts, it is necessary that a financial report including a breakdown of man-days and

incidentals, in addition to a progress report, is prepared and submitted with each of the Consultant’s

invoices. The format of the reports to be submitted should be agreed in advance by the Consultant

with the ERA and the CA.

Reports of Supervision contracts are particularly important as these reports also involve the outputs

of the Works contracts. All the relevant documentation that is produced under the Works Contracts

such as drawings, designs, specifications, site diary etc. may be annexed to the progress reports.

ERA’s should note that all reports and the procuded data such as maps, diagrams, drawings,

specifications, plans, software, etc., prepared by the Consultant during the course of the contract are

the property of the CA.

During contract audits and during the lifespan of the project, reports are used, as the first source of

information about the progress of the project. Therefore ERA’s should keep the record of all minutes.

Please also note Article 2.8 Record Keeping under Operational Agreement states that“ The ERA shall

establish and maintain a sound system of filing and archiving in accordance with Annex-7 (Standard


32

Filing Plan) and keep all records, accounting and supporting documents related to this Agreement for

the period of at least 6 years following the end of the eligibility period referred to in Article 2(2) of the

Special Conditions of the Financing Agreement, and in any case until any on-going audit, verification,

appeal, litigation or pursuit of claim has been disposed of. They shall be easily accessible and filed so

as to facilitate their examination and the ERA shall inform the OS of their precise location. All

supporting documents shall be available either in the original form, including electronic form, or as a

copy.

4.5.1 INCEPTION REPORT

The Inception Report is generally required in order that the Consultant may provide the following:

revised and adjusted indicators, assumptions and risks and logical framework matrix to the

situation encountered during reporting period;

Consultant’s opinions as to whether or not the actual situation, in relation to the contract, is as

described in the ToR;

Consultant’s understanding of any issues in the ToR that he may consider vague or unclear;

Consultant’s implementation approach to the contract;

Consultant’s proposed work schedule and allocation of the experts man/days;

Consultant’s proposed breakdown of incidental expenditures;

Any kind of deviations from ToR of Contract;

Any other issues that should be identified at the earliest stages of the contract, in order to

minimise any potential delays or problems during the implementation phase.

The standard contents of the Inception Report:

1) Project synopsis;

2) Analysis of the project - Start situation and deviations if any.

3) Project Planning:

Co-ordination with other projects;

Project objectives;

Project approach;

Intended results;


33

Planning of project duration;

Planning of man/days allocation for Experts;

Planning of incidental expenditure utilisation;

Constraints, risks and assumptions;

Planning of next reporting period.

The Inception report is submitted for approval to:

the ERA;

the CA;

and the EU Delegation and any other parties stated in the ToR for information.

Please note that apart from the hard copy of the final version of the report, it should also be uploaded

to MIS for approval.

4.5.2 SIX-MONTHLY PROGRESS REPORTS

Article 26 of the Special Conditions for Service Contracts identifies that progress reports should be

submitted in accordance with the ToR.

In order to ensure that the Consultant is achieving the results for which s/he was contracted and

therefore complying with the conditions of the contract, the ERA and the CA has joint responsibility

to review thoroughly the submitted reports and provide any necessary feedback.

Article 27 of the General Conditions of Contract, or other relevant details contained in the Special

Conditions, describe the time periods within which the Contracting Authority should provide a

response to the submitted reports.

The report is firstly approved by the ERA and then it’s formally submitted to the CA for their approval.

All report responses or approvals should be provided by the CA, in writing, to the Consultant. It is usual

for such approval procedure to be completed within 45 days of receipt of progress reports and very

often within a lesser period, should the circumstances of the contract require.

The format of the reports to be submitted should be agreed in advance by the Consultant with the

ERA and the CA in order that the information provided assists the ERA and the CA in preparing the

necessary reports for the NAO, NIPAC and Monitoring Committees.

Action Responsible

Inception Report Consultant 2 to 3 months (ToR)

Comments on

the Report

Parties 15 days

Revision of Report

Consultant 7 days

Approval and

Issue of the Report

ERA and CA


34

Standard contents of the six-monthly progress Report:


2) Summary of activity based progress since project start-up;

3) Summary of project planning for the nest reporting period of the project;

4) Project progress in the reporting period;

5) Project planning for the next reporting period;

6) Project progress and planning from the financial terms including incidental expenditures;

7) Technical annexes, project findings, recommendations, annexes.

The Inception report is submitted for approval to:

the ERA;

the CA;

and the EU Delegation and any other parties stated in the ToR for information.

Please note that apart from the hard copy of the final version of the report, it should also be uploaded

to MIS for approval.

4.5.3 FINAL REPORT

Article 26.4 of the General Conditions for Service Contracts, states that a final report must be sent by

the Consultant to the CA not later than 60 days after the completion date of the contract, where the

draft version should be send one month before the Project finishes.

As with progress reports, Article 27 of the General Conditions for Service Contract describes the time

periods within which the CA should provide a response to or an approval of the submitted final

reports. In most cases such a period would not be expected to exceed 60 days. Within this period the

ERA should review and approve the report before the CA approves the Final Report of the Project as

in contractual terms this means the end of the contract.

Standard contents of the Final Report:


2) Summary of progress since the start of project;

3) Summary of progress in final project period;


35

4) Project completion report (including executive summary and recommendations and lessons

learnt);

5) Other issues, observations and recommendations related to project implementation;

6) Annexes.

The Final Report is submitted for approval to:

the ERA;

the CA;

and the EU Delegation and any other parties stated

in the ToR for information.

Please note that apart from the hard copy of the final

version of the report, it should also be uploaded to MIS for

approval.

4.6 FORMAL APPROVAL for ALL TYPES of REPORTS by ERA

Operational and communication related actions of the project will be undertaken through the MIS of

the CA. These operations include:

Experts procedures (aproval of time sheets, approval request forms (ARFs) etc.)

Contract modifications (submission of Administrative Order and/or Addenda etc.)

Budgetary expenditures (approval of incidental requests etc.)

Reports (submission and approval contractual reports)

After the completion of the commenting period of the Reports, it is the ERAs responsibility to issue

the approval of the report. This approval means the reports are correct and they ensure that the

project is implemented in accordance with the requirements of the Contract Documents. Getting

consent with the Report the ERA will have;

stamped [“read & approved”] in case it is

approved

stamped [“NOT approved”] in case not approved

If the report or deliverable is “NOT approved” the ERA shall clearly state its reasons and provide

supporting documentation to the CA.

Action Responsible

Final Report Consultant (as

stated in the ToR)

Comments on the Report

Parties 30 days

Revision of Report

Consultant 30 days

Approval and

Issue of the Reports

ERA and CA

“READ AND APPROVED”

STAMP


36

4.6.1 APPROVAL of EXPERTS TIMESHEETS by ERA

ERA has the responsibility to approve timesheets (Annex 3 -

Template for Time Sheets of Experts) provided by the TAT

and the signature of the ERA upon a TAT’s timesheets shall

be accepted by the auditors as a warranty that the claimed

input of TAT’s staff faithfully represents their inputs to the project. Time Sheets of the Experts will be

presented at the end of each month of work by the TAT to the ERA. Therefore ERAs daily involvement

in project implementation is of high importance.

ERA shall receive the timesheets of the TAT’s staff on a monthly basis. ERA shall check and approve

the timesheets of experts for compliance with the contract. If ERA does not feel confident with the

timesheets accurateness/correctness in any respect they shall be corrected by the TAT and

resubmitted to ERA for approval. The originals of the timesheets must be kept by the Consultant and

will be basis for the interim payments. ERA after the approval, should make a copy of the time sheets

for their records and will make them all available if any time asked by the CA and/or the Auditors.

Please refer to Article 2.8 Record Keeping under Operational Agreement.

While approving the time sheet, ERA should ensure that it;

a) is related to approved personnel;

b) is related to the approved mission and compliant to the approval date and period of

mobilisation of expert in the approval form approved by CA;

c) does not lead to an exceed the allocated days for the expert;

d) is included if the per-diems is deserved and correct by the expert;

e) is arithmetically correct or not.

While calculating the working days of the key and non-key experts ERA should take into account the

following principles:

For all experts travel days from/to country of residence (or hometown for long-term experts

who reside in Turkey) of to/from base of operations (duty station) are not considered working

days;

“Time Sheet” Approval

5 DAYS

Please see Annex 3 for the template of Timesheet


37

For experts the exception is when travel days from/to country of residence (or hometown

for non-key experts who reside in Turkey) are at the same day meetings/work takes place.

Weekend days spent as travel days should not be considered as working days;

These days will be considered as working days;

Missions (the part of the assignment which requires the experts to leave his/her duty station

to engage in project related activities in another province or country) are considered

working days for all experts;

The experts while working for missions, which requires them to leave his/her normal place

of posting, will be eligible for per-diems;

Per-diems are calculated on overnight spent in the mission;

Experts working in the duty station of their task are not eligible for per-diems. Duty stations

of the experts are defined in the ToR for Keys, in the Non-Key Expert approval forms for Non

Keys;

In principal weekend days and official/religious holidays in the country of the base of

operations are not considered as working days for experts. However, for exceptional cases

and with prior clearance (by approval) of CA, experts may also work at weekends and during

official/religious holidays;

Annual and sick leave days of Experts are not considered as working days;

ERA should approve the time sheets within five days after the submission of the Consultant.

Please note that the common practise in the approvals of timesheets is that it is first circulated by an

e-mail among the ERA and the CA. Once the ERA approves the timesheet, the CA approval follows.

Then the timesheets are uploaded to MIS for approval of the CA. The e-mail submission is intended to

avoid any errors and mistakes that might happen in the timesheets and prevent the duplication of the

efforts in the signature of hard copies by the SRER, mainly and the TA Team.

4.6.2 APPROVAL of the NON-KEY EXPERTS BY ERA

ERA shall approve non-key experts proposed by the TAT and notify the CA in writing of their pre-

approval. This is usually done in the e-mail mentioned above. The selection process for Non-key

Experts shall be as set down in the Terms of Reference of the service contract or decided at the

inception phase. ERA shall set up such selection procedures as required in the ToR/decision taken at

the inception phase.


38

While issuing the approval for the non-key experts ERA should check;

The ToR (explanation of the experts’ mission together with the expected outputs) of the

expert, whether it is in line with the contract objectives and activities;

The consistency of the request with the project time table of activities;

The CV of the Expert proposed for the mission;

Justification/proof documents of the proposed experts regarding the experience included

in the CV;

ERA may require an face to face interview (or by phone) should inform the Consultant well

in advance for the availability of the expert;

ERA in some cases may require more than one CV to be proposed by the consultant to make

the best choice. This issue should be addressed in the kick of meeting;

No retroactive approval can be granted.

Please see Annex 4 for the template of Non-Key Expert Approval Request

4.6.3 PRE APPROVAL of INCIDENTAL BUDGET

ERA shall pre-approve incidental budget approval requests proposed by the TAT and notify the CA in

writing of their pre-approval. Incidental Expenditures are pre-set/lump-sum amounts that are defined

at the time of ToR drafting and they will be used for the realisation cost of Activities that are detailed

under 4.2 of the ToR.

Pre-approval of the incidental budget approval requests means that ERA is consent with the activity

to be realised and it is in line with the provisions of the ToR.

While approving the budget approval requests the ERA should;

Check whether the request is in line with the incidental expenditure definitions detailed

under Article 6.5 of the ToR;

Check the per-diem rates available at the following web site

(http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/index_en.h

tm ) in each case as the rates may be changed frequently;

http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/index_en.htm

http://ec.europa.eu/europeaid/work/procedures/implementation/per_diems/index_en.htm


39

Understand that these are the estimated amounts and should be verified with actual costs

supported with actual invoices;

ERA should approve the incidental expenditure well

before the activity occurs, within at least 2 days after

the Consultant send the request;

ERA should inform the CA on its decision of pre-

approval in writing;

No retroactive approval can be granted.

It will be the Consultant’s responsibility to manage and control the incidental expenditure on effective

and efficient manner throughout the entire duration of the project. Please also be reminded that the

ultimate responsibility of monitoring of the use of the incidental expenditure belongs to the

Contracting Authority within the framework of sound financial management. The actual realisation of

the incidentals expenditures will form a part of the interim/six-monthly progress reports and ERA

should follow the incidental expenditure budget and monitor for the effective utilisation.

Please also note that once it is approved by the CA PMD Contract Manager, final verification during

payment is with the Finance Department of the CA.

4.7 CONTRACT MODIFICATIONS

Contracts may need to be modified if the circumstances of project implementation have changed since

the contract was signed. However, the subject matter of the contract cannot be altered. Contracts can

only be modified during their execution period. Any justified modification to the contract must be

made officially by means of an administrative order or an addendum in accordance with the general

conditions. Substantial changes to the contract must be made by means of an addendum whereas

other changes is made by an administrative order issued by the CA.

Under following example cases an addendum must be issued by the CA for the endorsement of the

EU Delegation;

which involves a change in the total value of the contract;

which involves change in the duration of the contract;

which involves a change of the key experts;

Under following example cases administrative order must be issued by the CA;

changes in the bank account, address, auditor etc;

“Incidental” Pre- Approval

AT LEAST 2 DAYS BEFORE

Please see Annex 5 for the template of Incidental Budget


40

changes in the quality, quantity, sequence of the activities;

timing of the activities;

additions, substitutions of the activities providing that the objectives of the ToR is not

altered.

4.7.1 ERA’s ROLE in CONTRACT MODIFICATIONS

According to the Operational Agreement, ERA is responsible for the ToR and also the implementation

of the consequent service contract that is dependant on the ToR. Therefore technical aspects of the

ToR, whether realised or not, should be monitored by ERA very closely. In modifying the contracts,

ERA’s pre-assessment and the pre-approval of the request bares utmost importance. The CA depends

on the pre-assessment and decision of ERA in finalising the Contract Addendum.

ERA should consider the below points while assessing the modification request of Consultant. A

modification;

can only occur within the lifetime of a contract;

must be closely related to the nature of the original contract;

can involve extensions to the contract period, provided that final payment can be made

before expiry of the n+5 deadline and this control is the responsibility of the CA;

if there is a financial impact, this impact of the amendment must not exceed 50% of the

initial contract amount;

cannot be made retroactively;

must not be of a nature that the modification request would have fundamentally changed

the competition conditions at the time of tender evaluation, the CA will be responsible to

ensure the evaluation conditions is not changed;

must not fundamentally alter the ToR.

4.7.2 ERA’S ROLE IN REPLACING THE KEY EXPERT

Service contracts due to their nature are executed by human resources, by the experts. Key and Non

Key Experts have a crucial role in the implementation of the contract. Also at the time of the tender

evaluation the Key Experts have been a major contributory factor in the selection process. Therefore

it is the ERAs full interest to benefit from the selected key experts.


41

In some cases, should the experts not be available for reasons such as death, illness or in the event of

an accident, or with a clearly a justifiable reason, the Consultant will need the replacement of the

Expert. Likewise the Consultant cannot compel his personnel (experts of the project) to remain

involved in a project if they decide to resign or otherwise.

If replacement of key expert is inevitable, the Consultant should propose 3experts within 15 calendar

days from the first day of key expert unavailability. The proposed experts must have at least equivalent

or better qualifications and experience stated in the contract. ERA should assess the qualifications and

skills of the proposed experts and informs the CA about its decision in writing.

Please also note that replacement of key experts is not recommended nor preferred. In such cases,

the CA considers to apply related provisions of the contract under General Conditions:

Administrative and financial penalties (Article 10, 17 and 34).

Suspension of the Contract (Article 35).

It may also occur that the ERA and/or the CA becomes dissatisfied with the performance of particular

experts and in such a case, may request the Consultant to replace these experts.

In any of the above situations, the responsibility for resolving the issue rests with the Consultant and

the Consultant is under a contractual responsibility to provide the necessary replacements for making

the ERA and/or the CA fully satisfied with quality of expert proposed/replaced. The Consultant should

propose a compulsory action to fill the gap of the replacement on its own cost until the addendum is

in place for the replacement of the key expert. ERA should apply the same assessment procedure as

defined in the non-key expert approval stages in above sections. Pre-Approval of the ERA should be

granted first to start the approval of the CA following the contract addendum exercise.

For exceptional cases, in which the Contracting Authority identifies from the replacement request of

a key expert and its supporting documents that the request is not duly justified, then the Contracting

Authority can apply a fee reduction ratio in comparison with the former key expert’s fee rate

regardless of the specifications of the proposed key expert.

The Contracting Authority also reserves his right to apply extra fee reduction to the replacement key

expert in case he/she does not fully meet the requirements and specifications of the former key expert.


42

CHAPTER 5 - IMPLEMENTATION OF SUPPLY CONTRACTS

5.1 OVERVIEW

Supply contracts basically cover delivery, installation, test and inspection; put into operation,

training where necessary, warranty services and ancillary services. However depending on the

nature of the supply contract some of the supplies might need manufacturing, special design and

production, development, customization, assembly at the site and/or integration with other

supplies in different contract. These kinds of supply contracts may require a service contract that

supports the ERA for implementation of supply contracts due to complexity.

5.1.1 GUIDANCE NOTE TO ERAs

Milestones in the implementation of supply contracts are explained under 5.2 Implementation. They

are not limited but they will be helpful both to OS/CA and ERAs to have a better approach when

they meet challenging problems during implementation.

For supply contracts, order of precedence is stipulated in Article 4, in the Contract. The OS/CA and

ERA should pay attention to this article when they meet problems during contract management.

5.2 IMPLEMENTATION

5.2.1 COMMENCEMENT

Special conditions Article 18, gives the commencement date, the starting date of implementation of

a supply contract.

Generally, Supply contracts start after the contract is signed and issuing of “Administrative Order“

by the OS/CA. For complex supply contracts, it is preferable to arrange a kick-off meeting by the

OS/CA. Kick-off meeting is held in the similar way with service contracts as stated in 4.4.1.

5.2.2 TASKS OF OS/CA & ERA BEFORE DELIVERY OF SUPPLIES

Both before tendering while preparing the Technical Specifications and in the implementation stage

of the contract, the ERA must check whether there is a restriction or not for import of supplies with

current laws and regulations or need special permission from related Authority for import. If there

is such a case, the ERA informs the OS/CA. OS/CA, in the tender preparation stage, inserts necessary

warnings for the suppliers on the tender documents, verifies market survey according to the cost of

these additional permissions and to the prices of the products that may already had such

permissions; and in the implementation stage assists the supplier as per defined in the General

Conditions, Article 8, Assistance with Local Regulations. Please note that the preparation of the

Technical Specifications is the responsibility of the End Recipient of Assistance.

Depending on the nature of the requirement, site visit may be foreseen in the tendering stage of

the supply contracts. Even if site visit is realized during tendering procedure, most of the time it

comes again as an agenda in the implementation stage just after the signature of contract and

before the delivery of the supplies since installation of equipment might be problematic for complex


43

supplies that require installation works. Unless otherwise stated in the contract, the supplier is not

responsible for structural and infrastructural works. Most of the time, the End Recipient of

Assistance is responsible for structural and infrastructural works in this respect. Other than very

special cases it should be stated in the contract that the supplier is responsible for installation and

start-up of the supplies delivered under his contract.

The delivery address (es) is given in the supply contract and with the terms and conditions; the

supplier delivers the equipment to this mentioned address. If changing of delivery address is an

obligation for the ERA in the implementation stage, the ERA should inform the OS/CA stating the

reason for this change with an official letter. The OS/CA must request a confirmation letter that no

additional cost to the supplier is necessary or required additional work has already been done by

the ERA, if necessary. In addition to this, the OS/CA might request a layout plan from ERA with the

equipment list in the contract.

5.2.3 TIMETABLE (IMPLEMENTATION PROGRAMME)

Special Conditions Article 13 implementation programme (timetable) gives the milestones of the

supply contract. The work programme prepared by the supplier must be in logical order with respect

to activities in the contract. The proper work programme is approved by the ERA.

While approving the work programme that shows all the steps of the implementation, the ERA

should consider the applicability of this programme including its organization sketch and workload

i.e. daily activities other than the said contract. If the applicability seems to be hard due to heavy

workload and organization sketch, this situation is solved by the action of the ERA taking some

precautions for the execution of the contract. If applicability is impossible due to logical framework,

the ERA rejects the work programme and request from the supplier to revise it.

In most supply contracts, separate training is delivered to the operators and users of the supplies.

The purpose of trainings in the supply contract is to ensure proper operation and usage of the

equipment in an efficient and effective manner and is very crucial for the performance.

While scrutinizing the work programme of the supplier by the ERA, a crucial point is that training

should not be performed at the same time with other activities in the work programme for particular

for complex supply contracts.

5.2.4 SPOT CHECK AFTER PRE-FINANCING PAYMENT

Unless otherwise stated in the Special Conditions, supplier may demand pre-financing as stated in

General Conditions Article 26.5 which means that up to 40% of the contract amount after the

signature of the contract, against provision of pre-financing guarantee and the rest, 60% of the

contract price is paid following provisional acceptance of the supplies.

The supplier has to use the paid pre-financing for operations in connection with the performance of

the contract. The OS/CA may visit the site any time during the implementation and check the

execution of the contract according to the work programme.


44

5.2.5 MODIFICATIONS

While implementing the contract the offered product may not be available in the market any more.

If the offered product is not available in the market, the Contractor should prove the situation by

documentary evidence and offers a new product at least having the same technical specifications

and quality or better; and has same or advantageous rule of origin conditions. If convinced OS/CA

gives an administrative order that variation is to be made at the same price of the replaced item and

under the condition given in the contract with the agreement of the ERA.

Subject to the limits of the procedure thresholds set in the PRAG (General Conditions Art.22), the

Contracting Authority reserves the right to vary by an administrative order the quantities per lot or

per item by +/- 100% at the time of contracting and during the validity of the contract. The total

value of the supplies may not rise or fall as a result of the variation by more than 25% of the tender

price. The unit prices quoted in the tender shall be applicable to the quantities procured under the

variation.

5.2.6 COMMITTEE FOR INSPECTION &TESTING, PROVISIONAL & FINAL ACCEPTANCE

Unlike the Evaluation Committee there is no restriction in number for the Provisional Acceptance

Committee however a number of at least three people are preferable and for complex supplies it

may be increased to five. More than five people are not suggested since the arrangement gets

harder. The Provisional Acceptance Committee is established by ERA according to internal

procedure.

The same procedure is applied for final acceptance committee.

5.2.7 INSPECTION AND TESTING

Before the provisional acceptance inspection and testing procedure is performed at the delivery

address. During the inspection and testing procedure, validity and verification of supplies in

quantities, technical performance, technical specification and technical documentation is checked

and documented. The documents must be signed by all committee members and the

representative(s) of the supplier.

If there is a disagreement with the supplier and the committee members, the action is carried out

according to General Conditions Article 25.6.

5.2.8 PROVISIONAL & PARTIAL ACCEPTANCE

The supplier submits a written application indicating that he is ready for provisional acceptance to

the OS/CA when all the supplies are installed and functioning properly in accordance with the

technical specifications.

The committee can set up the method for inspection procedures to carry out operational and

functional checking and verification. For operational procedure, availability of the supplies in the

delivery address, brand name and model stated in the contract, rule oforigin of the supplies, proper

use of the supplies and visibility rules are checked. For functional procedure, each item has technical


45

specifications in the contract and checked by the committee that the item has specified technical

specifications in the contract.

For some cases, all items in the supply contract act as system. For such a case, Provisional

Acceptance is also given for the whole system. It is suggested to define some different test scenarios

with the support of Contractor and mutually agree on them before starting the test for such cases.

The committee tests the whole system in different ways including

necessity modules such as performance, stress, recovery,

reliability etc. Each module is defined and the tests to be

performed are decided. These modules are adapted to the

nature of the supplies.

Partial acceptance can be issued by the OS/CA upon the request of the supplier as stipulated in

General Conditions Article 31.5. The OS/CA accepts or rejects the partial acceptance with the

agreement of the End Recipient.

5.2.9 FINAL ACCEPTANCE

After the Partial/Provisional Acceptance warranty period starts

for the accepted items and goes until the Final Acceptance. During this period, the End Recipient of

Assistance documents the problems.

After end of warranty period (generally one year after the approval of Provisional Acceptance-

General Conditions Article 32.7), the supplier submits a written application for final acceptance to

the OS/CA. The deficiency list detected during warranty period is checked by the committee for Final

Acceptance.

The End Recipient develops its policy for operation and maintenance since no EU Fund is available

after expire of warranty period.

CHAPTER 6 - IMPLEMENTATION OF WORKS CONTRACTS

6.1 OVERVIEW

Works contracts shall be administered in accordance with contract conditions as published by the FIDIC (Fédération Internationale des Ingénieurs-Conseils). Depending on the nature of the works contracts to be funded under IPA, the most widely used contract conditions are following:

- Conditions of Contract for Construction (first edition 1999) - commonly referred to as the “New Red Book”

- Conditions of Contract for Plant and Design-Build (first edition 1999) - commonly referred to as the “New Yellow Book”

The main parties to a FIDIC contract are the “Employer” and “Contractor”. In the case of projects in Turkey, the Employer is the OS/CA who signs the Works contract with the Contractor.

In the context of works contracts the OS/CA assumes the role of Employer within the FIDIC contracts. The Employer is represented by a person called the FIDIC “Engineer“ who should have a

“ Provisional/Partial

Acceptance” Approval 5 DAYS

“”Final Acceptance

Approval 5 DAYS


46

power of attorney in place to represent the company of consultants which employ him/her. The administration of the Works contract is managed by the “Engineer”.

The Contractor is the legal person or persons who were successful in the tendering process for the relevant Works Contract and were awarded and signed the same contract. The Works Contractor is represented by a person called the “Contractor’s Representative” who should have a power of attorney to represent the company of contractors which employ him/her.

All correspondence in the contract shall be between the FIDIC Engineer and the Contractor’s Representative. The FIDIC contracts require that the FIDIC Engineer and the Contractor’s Representative nominate their respective organizational sub-structures. This can be done by a manual of site procedures (Quality Manuel & Procedures) written and periodically updated by the FIDIC Engineer.

The works contracts permit, upon notification by the Employer to the Contractor and the Engineer, the ERA to undertake some of the tasks assigned to the Employer in the Contract. However all contracts state that the ERA shall have no authority to amend the contract.

For larger works contracts the ERA may wish to include technical experts such as mechanical, electrical or environment engineers in his “OCU” team. The staff section shall depend on the nature of the works contract. (Example: civil and environment engineers for infrastructure works)

The Director of “OCU” shall ensure that all correspondence between the FIDIC Engineer and the Contractor’s Representative shall be copied electronically to the “OCU” and “SRER” in “pdf” format via e-mail.

All such electronic correspondence shall bear a file name with the date of origination and sufficient alpha numeric characters to identify the approximate nature of the communication.

6.2 IMPLEMENTATION

6.2.1 PARTIES

The bodies in the management of the Works Contract are:

- The ERA of the project;

- The OS/CA within the MoIT;

- FIDIC Engineer/Consultants;

- Contractor(s) and Sub-Contractor (if any);

The respective responsibilities amongst the ERAS and the OS/CA are defined in the Operational Agreement to be signed between the OS/CA and ERA.

6.2.2 RELATION BETWEEN THE PARTIES

6.2.2.1 RELATION BETWEEN OS/CA AND ERA

ERA:

The ERA will be responsible for management of the Project in accordance with the provisions laid down in the Operational Agreement.

In general they can be summarized as follows:


47

Monitor the project [in close cooperation with the CSP Project Management Department (CSP

PMD) to ensure it is timely and properly implementation under the best quality standards;

Technical management of the contracts [i.e. monitor the technical performance of Contractors];

Perform of first-level control over the deliveries of contractors.

OS/CA:

The responsibility for the implementation of the contracts lays upon the Implementation Division of CA The ID (Implementation Division) is responsible for implementation of works contracts.


Monitor the project [in close cooperation with the ERA to ensure it is timely and properly

implemented under the best quality standards;

Technical management of the contracts in close cooperation with the ERA, monitor the technical

performance of Contractors];

Perform of second-level control over the deliveries of contractors (on a sample basis);

Ensure the financial and legal management of the contracts.

The works contracts permit, upon notification by the Employer to the Contractor and the Engineer, the ERA to undertake some of the tasks assigned to the Employer in the Contract such as follows:

Under sub-clause 1.12 the “SRER/OCU” shall represent the ERA in any decision to allow the

Contractor to publish or disclose any particulars of the contract;

At the request of the contractor the “SRER/OCU” shall assist the OS/CA in Employer-obligations

under FIDIC to include but not be limited to, access to site, permits and licensing;

Under sub-clause 5.5 of FIDIC 1999 Yellow Book, the “SRER/OCU” shall represent the ERA in the

selection of the ERA’s staff for training under the contract;

Reporting opportunities for the ERAs staff under sub-clause 4.6 “cooperation”;

Approval of the sign board in accordance with EU Visibility Guidelines;

Shall ensure there is no attempt by the Contractor to recruit the ERA’s staff under sub-clause 6.3;

Shall participate under sub-clauses 10.1 and 10.2 in the taking-over process and sign the Taking-

Over Certificates of works contracts as an observer on behalf of the ERA;

The “OCU” shall have the right to use of Contractor’s Documents under sub-clause 1.10 of the General Conditions of Contract.

The “SRER” should read the Works contract and establish all sub-clauses where it is representing the ERA under the contract.


48

6.2.2.2 RELATION BETWEEN OS/CA AND FIDIC ENGINEER

The FIDIC Engineer is appointed by the Employer to carry out the duties assigned to him/her under the works contracts. It is often the case that the services of the Engineer are procured by way of a services contract under the PRAG procedures, whereby the CA is one of the Contracting Parties and the successful tenderer for the services contract, is the other Contracting Party (Consultant) who thereafter becomes the Engineer. As such, the Engineer is not only required to perform his duties and exercise his authority in accordance with the Works Contract, but he is also required to comply with the conditions of the service contract with the CA.

In the administration of a Works contract it is usual that events will arise that may require the initiation of variation orders by the Engineer. Such variations are more common under the FIDIC Red Book contracts than FIDIC Yellow Book contract and often result in either or both increased contract costs or extensions to the contract completion deadline.

The Employer may wish to limit the Engineer/Consultant’s authority to initiate such variations and in this case the limitations must be clearly identified in the Particular Conditions of the FIDIC contract. It may also be identified in the services contract between the CA and the Consultant.

Concerning the above referred limitations, it would be necessary that the Engineer receives the approval of the Employer before initiating such variations.

6.2.2.3 RELATION BETWEEN CONTRACTOR AND ERA

The ERA shall only communicate with the Contractor(s) for the works contacts, via the Engineer to the FIDIC Contract(s). The ERA shall only meet with the Contractor in the presence of the FIDIC Engineer or one of the persons he/she has delegated actions to under sub-clause 3.2 of the General Conditions of Contract. The “ERA” shall have access to construction sites from time to time as necessary to keep themselves updated on Work progress and any problems arising. Site access for the “ERA” members shall be approved in advance by the FIDIC Engineer.

6.2.2.4 RELATION BETWEEN FIDIC ENGINEER AND ERA

In general the ERA shall work in parallel with the FIDIC Engineer and shall report directly to the OS/CA to give their opinion /interpretation of events occurring under the contract. The OS/CA shall heed the comments/opinions of the ERA in all judgments made about the works contract.

The “ERA” shall continuously keep the FIDIC engineer updated on the requirement of the ERA and any events within the ERA’s organization which may impinge upon the Engineer’s contract or in on-going works contract. The FIDIC Engineer shall continuously keep the “ERA” updated on site progress and any problems encountered.

The tasks of the ERA shall be carried out by the SRER/OCU.

The prime role of the OCU is to act as an interface between the FIDIC Engineer and the ERA. In no way, the ERA should attempt to take on the role of primary site supervisor (the FIDIC Engineer) in Works Contracts.

The “ERA” shall have access to construction sites from time to time as necessary to keep themselves updated on Work progress and any problems arising. Site access for the “ERA” members shall be approved in advance by the FIDIC Engineer.

The ERA shall agree dates for monthly progress meetings with the Engineer and to the extent possible shall provide meeting space should this not be available within site accommodation.


49

6.2.3 ATTENDANCE AT MEETINGS

Meetings must be regularly held to discuss the progress of the Contract and resolve outstanding issues. They are detailed in the table hereinafter.

The Minutes of meetings are prepared by the Engineer. Minutes of meetings are recorded in a standard format and they must be a fair and representative written record of the meeting.

The minutes of the meeting should be made available within a reasonable period after the meeting, say three working days (the time duration should be stated at the Kick-off meeting of the contract).

Meeting Timing Purpose Meeting

chaired by Parties invited Agenda / Minutes

Kick-off meeting

(also referred to

as Pre-commence

ment meeting)

Beginning of project

Once Contractor and Engineer are

appointed, CA/OS [in close cooperation with the ERAs]

organises a pre-commencement meeting to introduce all parties

formally and to clarify any outstanding matters.

CA/OS

CA/OS, ERA,

Engineer, Contractor(s),

EUD

Fixed Agenda prepared by the CA y

Minutes produced and distributed by the

Engineer Please see Annex-6

Weekly Site Progress Meetings

Weekly

Short informal meetings to :

- define the programme of activities for the following week

- record decisions made from one week to another,

Main items for discussion :

- Contractor’s Programme for the following week [The Engineer

needs to know the Contractor’s programme in order to arrange

for timely inspections and approval]

- The various registers2 are checked for consistency and discussed so

that the outstanding items can be arranged in order of priority or

age.

Engineer

ERA, Engineer ,

Contractor(s)

Minutes of the site progress meetings shall

be prepared by the Engineer and be included in his/her monthly reports on progress of the Works

contracts. Because of the frequency

of the meetings, it is unusual to report actions

from the previous meeting.

Monthly Progress Meetings

Monthly, near

the beginning of the month

shortly after the monthly

progress reports have been

issued, so that all information is

current and relevant

Overall contract management. It is a formal meeting for the exchange of

information and procedures. Monthly Progress Report is

discussed.

CA/OS or Engineer

CA/OS, ERA,

Engineer, Contractor(s)

EUD

Monthly Progress Report is discussed. Minutes

produced and distributed by the Engineer within

one week after the meeting is held.

Steering Committee

Meeting

Quarterly basis. If required, additional Steering

Committee

It will be established as an advisory body to provide overall guidance to

ensure co-ordination between stakeholder and to oversee

CA/OS

CA/OS,

ERA EUD

Fixed Agenda produced and distributed by the

CA/OS at least one week before the meeting.

2 Registers act as an aide memoir to ensure that nothing is lost misplaced or forgotten. There can be disagreements later on the Contract on the

date when information was agreed. The Contractor has obligation to give due notice of outstanding information and the Engineer has a duty to

provide the information before its absence delays progress.


50

Meeting Timing Purpose Meeting

chaired by Parties invited Agenda / Minutes

meetings will be organised by the

CA/OS.

implementation and settle possible disputes without delay.

Engineer (if requested by CA)

Minutes produced and distributed by the

Engineer within one week after the meeting is held.

Ad hoc meeting

When required

Discussion of specific issues/problems

Meetings held as necessary to deal with a single subject (e.g. design

change, claims, etc…)

Ad-hoc

As required. Attendance

should be kept to a minimum to

ensure that effective

decisions can be made quickly.

Agenda shall be produced by the CA/OS. Minutes

produces and distributed by the Engineer within

one week after the meeting held.

On the Spot Check

When required Checking the progress of the project

on the site. Ad-hoc

CA/OS,

ERA, Engineer,

EUD, NAO

See Item 6.3.5

Figure 4: Meetings

6.2.4 STEERING COMMITTEES

The design of the project includes the establishment of a Steering Committee (SC) which aims at facilitating the effective implementation of the contract and ensuring achievement of the project objectives.

The Steering Committee (SC) usually includes representatives of the main institutions involved in the CA/OS, the ERA and EU Delegation. The Engineer shall participate to the SC meetings if requested by CA/OS.

The overall objectives of the SC meetings are:

to provide timely communication and coordination in order to keep the stakeholders informed

about progress made in the contract implementation;

to review and discuss problems and search for solutions;

to recommend activities to improve the contract implementation process.

6.2.5 ON THE SPOT CHECKS

The CA/OS shall organise on-the-spot-checks planned on the basis of a risk analysis. On case-by-case basis, it might appear that additional on-the-spot-checks are organised on a random basis and/or whenever deemed appropriate.

The on-the-spot-checks may take place in the project’s location, the Engineer’s office (for Works contracts) and/or the ERA premises.

The planning and execution of the on-the-spot-checks shall be duly documented in “On-the-Spot-checks plans” and “On-the-Spot-checks Reports”.

Note: The NAO is entitled to perform any additional spot-check / site visit deemed relevant in the IPA bodies to verify the OS/C A declarations.


51

At their respective level of the cascade of controls set over the system of implementation, the NAO, the CA/OS and theERA of the project must verify - through physical checks on site - that outputs of the contracts are indeed available, according to the specifications of the contract, and are appropriately identified / recorded.

On-the-Spot-checks shall serve (among others) to:

correlate the reality with the details provided in the various reports on implementation;

monitor the execution of contracts at the level of theERA and to control the implementation of

any task / responsibility assigned to ERA;

ensure that projects implementation, financial management in accordance with EU funds and

national co-financing rules and relevant sound financial management systems [including tools

used to ensure the reporting on the project outputs and outcomes and related costs] are

established and operational;

verify on site the extent to which the ERA has taken measures to comply with the requirements

of the OA signed with the OS/CA (e.g. staff available in number and qualifications, detailed

operational procedures including setting objectives and measuring the performance through

indicators, etc.);

support the analysis of suspected irregularities;

Based on a risk assessment methodology and considering the delegation of tasks from the NAO to a bottom level (i.e. ERA), and the National Fund [on behalf of the NAO] shall prepare their respective “On-the-Spot-checks plans”.

The scheduling of on-the-spot-checks should be co-ordinated:

Internally: with all departments of each institution in order that any specific issues, that may need

checking, are identified.

Amongst the institutions: to avoid the duplication of efforts and optimise the coverage of the

contract / projects.

On-the-spot-checks may be scheduled to coincide with the Monthly Site Progress Meeting, Steering Committee Meeting, Taking Over, etc. These visits may serve to inspect the Site, work methods and materials, including the testing regime, to correlate the reality with the details given in the reports submitted by the Engineer and to prepare records related to works performed. “On-the-Spot-checks plans” shall be regularly updated taking into account:

the implementation of the Procurement Plan / Project Work Plans,

information received through the reporting system and regular meetings with the stakeholders.

The implementation of the “On-the-Spot-checks plans” shall be documented:


52

in registers of on-the-spot checks,

on-the-spot-checks reports.

Follow-up of recommendations / findings expressed in the on-the-spot-checks reports shall be regularly ensured.

6.2.6 RESPONSIBILITIES AND DUTIES OF THE ERA

The ERA will be responsible for management of the Project in accordance with the provisions laid down in the OA. The OA shall be signed with every single ERA and the duties may vary depending on the projects to be carried out.


Providing office space to the Engineer during the Pre-Construction Stage;

Obtaining necessary permits and licences for the construction/operation of the projects;

Monitor the project in close cooperation with the RCP Coordination and Implementation

Directorate (RCP CID) to ensure it is timely and properly implemented under the best quality

standards;

Technical management of the contracts [i.e. monitor the technical performance of Contractors];

Perform of first-level control over the deliveries of contractors.

Responsibilities and duties of the ERA related to implementation of the Works Contracts are as follows;

For Works Contracts participation in kick of meetings and any other meetings stated in the

contract;

Participation in spot checks and site visits upon needed;

Managing and monitoring work contracts from technical aspects and, notifying the CA about

difficulties, deficiencies, on-performance or suspect of irregularity during contract

implementation;

Contributing to the development and implementation of policies that facilitate the achievement

of the project objectives as well as the efficiency of future programmes and projects;

Participation in regular monitoring meetings to be organized in Ankara or in the operation area

and other meetings such as ad-hoc.;

Establishment a committee for approving the Taking Over Certificate and Performance Certificate

before the approval of the CA by an official letter.


53

6.2.7 REPORTING

Responsible for reviewing and approving the monthly progress reports, test reports before the approval of the CA (“read and approved”);

6.2.8 COMMENCEMENT OF WORKS

The date of the commencement of the “Works” is indicated in Appendix to Tender of the Works Contract.

Commencement date for the Work Contract to be given by the Engineer with information of the OS/CA. The engineer shall give the contractor not less than 7 days’ notice of the “Commencement date”. Unless otherwise stated in the Particular Conditions, the “Commencement date” shall be within 42 days after the Contract receives the Letter of Acceptance (FIDIC 8.1)

6.2.9 TAKING OVER CERTIFICATE

A Taking-over Certificate is issued to the Contractor when the Employer is satisfied that the Works have been completed in accordance with the Contract and have successfully passed any tests on completion, identified in the technical specifications.

It is noted that the issuance of the above certificate does not imply that the Contractor has satisfied all of his contractual obligations since minor works would likely still be outstanding, however these should not affect the use of the Works for their intended purposes. The outstanding work is identified by the Engineer and agreed with the Contractor and are completed during the Defects Notification Period.

The date on which the Taking-over Certificate is issued, is also the commencement date for the Defects Notification Period.

If bad performance occurs during the implementation of the project, supporting evidence including a statement signed by the person identified and verified the wrong doing should be collected and the case should be kept in file at the OS/CA. When the case is closed the OS/CA informs the ERA for it and presents a copy of the evidence upon request.

The Contractor may apply, by notice to the Engineer, for a certificate of ”Taking Over” not earlier than 14 days before the works, in the Contractor's opinion, complete and ready for ”Taking Over Certificate”.

The Engineer shall within 28 days of receipt of the Contractor's application either:

a) write a letter to the OS/CA that all the works are going to finish within the contract duration and site is ready for the ”Taking Over Certificate”. After receiving this notice OS/CA writes a letter including “Taking Over Memorandum” to the ERA in order to establish a Taking Over Committee for carrying out the necessary taking over studies together with the Engineer and the Contractor.

b) rejects the application, giving his reasons and specifying the action which, in his opinion, is required of the Contractor for the certificate to be issued. . The Contractor shall then complete this work before issuing a further notice under 10.1 FIDIC General conditions.

If the Engineer fails either to issue the Taking Over Certificate or to reject the


54

Contractor’s application within the period of 28 days, and if the works are substantially in accordance with the Contract, Taking Over Certificate shall be deemed to have been issued on the last day of the that period.

In case of (a), the Taking Over Committee come together with the observation of the OS/CA and the ERA. First Engineer makes the taking over and signs a declaration that the works were completed as per design and specifications. After committee members have their investigation with the latest version of the design and technical specifications if needed, relevant test are held by the committee for testing of the system. After completion of the taking over, the committee signs a memorandum that either:

i) works are completed according to the declaration of the Engineer and their inspection and signs the memorandum or,

ii) fixes a verification date for the outstanding Works.

In case of (ii), verification of the works by the Taking Over Certificate with a view to provisional acceptance shall take place in the presence of the Contractor. The absence of the Contractor shall not be a bar to verification, provided that the Contractor has been summoned in due form at least 30 days prior to the date of verification.

Should exceptional circumstances make it impossible to ascertain the state of the works or otherwise proceed with their acceptance during the period fixed for Taking Over, a statement certifying such impossibility shall be drawn up by the Engineer, if possible after consulting the Contractor. The verification shall take place and a statement of acceptance or rejection shall be drawn up by the Committee within 30 days following the date on which such impossibility ceases to exist. The Contractor shall not invoke these circumstances in order to avoid his obligation to present the works in a state suitable for acceptance.

The works shall not be accepted until the prescribed verifications and tests have been carried out at the expense of the Contractor. The Contractor shall notify the Engineer of the date on which such verification and tests may commerce.

Works which do not satisfy the terms and conditions of the contract or which, in the absence of such terms and conditions, are not carried out in accordance with trade practices in the state where the works are located shall, if necessary, be demolished and rebuilt by the Contractor or repaired to the satisfaction of the Engineer. Otherwise, this shall be done as of right after due notice, at the expense of the Contractor, by order of the Engineer. The Engineer may also require the Contractor to demolish and reconstruct, or to repair to the Engineer’s satisfaction, works in which unacceptable materials have been used or works carried out in the periods of suspension.

After verification of the works another memorandum is held by the acceptance members that all the outstanding/faulty works are completed / corrected as per design and specifications.

The Engineer sends the signed memorandum to the OS/CA with a letter stating the Taking Over of the works was completed. After receiving this letter Implementation Division prepares the Taking Over Certificate and submits to the Head of OS on behalf of OS for signature.

If the Engineer fails either to issue the certificate of Taking Over or to reject Contractor’s application within the period of 28 days, he shall be deemed to have issued the certificate on the last day of that period. If the works are divided by the contract into sections, the Contractor shall be entitled to apply for separate certificates for each of the sections.

If there is more than one site which works had been executed then for each shall be applied same and separate procedure and a Taking Over Memorandum shall be issued for each site but only one Taking Over Certificate shall be prepared by the OS/CA to give the Contractor. The date of the last


55

Taking Over Memorandum shall be the date of the Taking Over and this date shall be written over the Taking Over Certificate that will be prepared by the OS/CA for submitting to the Contractor.

6.2.10 FINAL ACCEPTANCE

Upon expiry of the maintenance period (Defect Notification Period) or, where there is more than one such period, upon expiry of the last period, and when all defects or damage have been rectified, the OS/CA writes a letter including “Performance Memorandum” to ERA that maintenance period was finalised and a team is needed to establish for the Performance Certificate of the works. The Performance Certificate Committee comes together with the observation of the OS/CA and the Engineer, if the contract period of the Engineer has not finalised yet. If there is no Engineer on site, obligations of the Engineer shall be held by OS/CA and ERA. First, Engineer reviewes and signs a declaration that either the maintenance period was completed without any defects or all the faults were repaired. After committee members have their investigation with the latest version of the design and technical specifications if needed, relevant test are held by the committee for testing of the system. After completion of the study, the committee signs a memorandum that either:

Works are completed according to the declaration of the Engineer and their inspection and signs the memorandum or fixes a verification date for the defected works.

In case of determining verification date, verification of the works with a view to Performance Certificate shall take place in the presence of the Contractor. The absence of the Contractor shall not be a bar to verification, provided that the Contractor has been summoned in due form at least 30 days prior to the date of verification.

Should exceptional circumstances make it impossible to ascertain the state of the works or otherwise proceed with their acceptance during the period fixed for Performance Certificate, a statement certifying such impossibility shall be drawn up by the Engineer, if possible after consulting with the Contractor. The verification shall take place and a statement of acceptance or rejection shall be drawn up by the Evaluation Committee within 30 days following the date on which such impossibility ceases to exist. The Contractor shall not invoke these circumstances in order to avoid his obligation to present the works in a state suitable for acceptance.

The works shall not be accepted until the prescribed verifications and tests have been carried out at the expense of the Contractor. The Contractor shall notify the Engineer of the date on which such verification and tests may commerce.

Works which do not satisfy the terms and conditions of the contract or which, in the absence of such terms and conditions, are not carried out in accordance with trade practices in the state where the works are located shall, if necessary, be demolished and rebuilt by the Contractor or repaired to the satisfaction of the Engineer. Otherwise, this shall be done as of right after due notice, at the expense of the Contractor, by order of the Engineer. The Engineer may also require the Contractor to demolish and reconstruct, or to repair to the Engineer’s satisfaction, works in which unacceptable materials have been used or works carried out in the periods of suspension.

After verification of the works another memorandum is held by the evaluation committee members that all the outstanding and faulty works are completed and then corrected as per design and specifications.

The Engineer sends the signed memorandum to the OS/CA with a letter stating the Performance of the works was completed. After receiving this letter the contract expert of the project prepares the Performance Certificate and Head of OA signs on behalf of OS/CA.

The Performance Certificate shall be issued by the OS/CA within 30 days of the expiry of the maintenance period if no defects are found by the Acceptance Committee or as soon as any works


56

ordered under Article 58 of General Conditions have been completed to the satisfaction of the Engineer.

Figure 5: Performance Certificate Stage

Contractor TAT ERA OS / CA

OCU / SRER

Technical Check

Arithmatic Check

Legal/Eligibity Check

1

Engineer makes the

final acceptance and

signs a declaration

that either the

maintenance period

was completed without

any defects or all the

faults were repaired.

If there is no Engineer

on site, obligations of

the Engineer shall be

held by OS/CA and End

Recipient.

2

The OS/CA writes a letter

to End Recipient that

maintenance period was

finalised and Final

Acceptance Team need

to be established for the

Final Acceptance of the

works

3OS/CA inform the

Engineer

4

ERA performs the study

and fixes a verification

date for the defected

works

It is given reasonable

time damages to be

remedied

5

ERA performs the study

and sign the

"Memorandum" together

with the Contr.'s Rep.,

Engineer, Commitee

Members and OS/CA as

observer. ERA send the

signed "Memorandum"

to OS/CA with a cover

letter

6

The OS/CA prepare the

"Performance

Certificate" and send to

the Engineer

7

The Engineer shall issue

Performance Certificate

to the Contractor within

28 days after the expiry

of the DNP (FIDIC GC 11.9)

Contractor's

Representative

FIDIC

Engineer

Implementation

Expert

(Contract Manager)

Date Activity

REJECTION

APPROVAL

< 28 days


57

6.3 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS

It shall be noted that all reports and data such as maps, diagrams, drawings, specifications, plans, software, etc., prepared by the Engineer/Consultant during the course of the contract are the property of the OS/CA [General conditions of Contract - Article 14 Intellectual and industrial property rights].

CHAPTER 7 - FINANCIAL MANAGEMENT AND REGULATIONS ON

TAX EXEMPTIONS

7.1 FINANCIAL MANAGEMENT

One of the most important and last step in the implementation period of a contract is to achieve the below financial management functions:

Payments for all types of contracts (Service (TA& Supervision), Supply, Works, FWC etc.);

Request for Funds;

Accounting;

Financial Reporting.

However, these are the responsibilities of the Contracting Authority (CA) NOT THE ERAs.

The role of the ERAs related to Financial Management functions are more on technical side and related to supporting CA/OS in the payment function which can be described in two phases:

7.1.1 FINANCIAL MANAGEMENT RELATED FUNCTIONS OF ERAS DURING THE

IMPLEMENTATION PHASE OF THE CONTRACT

Since payment function is an output of implementation (technically) of a contract, before executing a payment to a contractor/consultant the CA/OS has to check the timely and proper approval of some documents during the implementation stage. The approval of these documents is a pre-requisite to execute the payment for the CA/OS. Here is the list of documents according to contract type that should be approved during the contract period:

SERVICE (TA &SUPERVISION) CONTRACTS:

Non-key expert approvals (Senior- Junior Experts)

Approval of timesheets for Key and Non-Key Experts

Incidental Budget Approvals

Six-Monthly Progress and Final Report Approvals


58

The role of the ERAs during the approval stage of documents according to the Operational Agreement is as follows:

Approval Steps ERA CA/OS Non-key expert approvals Pre- approval Approval Timesheets Approval Approval Incidental Budget Approvals Pre-approval Approval Six Month Progress Report Approvals Pre- approval Approval

SUPPLY CONTRACTS:

Provisional Acceptance

Final Acceptance


Approval Steps ERA CA/OS Provisional Acceptance Pre- approval Approval Final Acceptance Pre- approval Approval

WORKS CONTRACTS:

Taking Over Certificate

Performance Certificate


Approval Steps ERA Contracting Authority Taking Over Certificate Pre- approval Approval Performance Certificate Pre- approval Approval

The details of implementation stages and approval processes of the above documents are clearly defined in CHAPTER 4 (Service including TA& Supervision Contracts), CHAPTER 5 (Supply Contracts), CHAPTER 6 (Works Contracts).

7.1.2 FINANCIAL MANAGEMENT RELATED FUNCTIONS OF ERAs FOLLOWING THE

SUBMISSION OF AN INVOICE BY THE CONTRACTOR/ CONSULTANT

Following the receipt of requests for payments/invoices from the contractor/consultant, the Contracting Authority requests prior authorization from the ERA related to technical verification and document controls on invoice (“read and approved”) by sending a copy of invoice and checklist (please see Annex 8 for the checklist) .


59

The ERA is responsible from approving the copy of invoice/s “read and approved” in technical terms by filling the checklist which will be sent to ERA by the CA/OS. ERA should approve the invoice within 5 calendar days following the receipt of invoice by the ERA. If “read and approved” is not received from the ERA in 5 calendar days following the receipt of invoice by the ERA and in the absence of any comments within that period they will be considered to be tacitly approved by the CA/OS.

stamped [“read & approved”]in case it is approved

stamped [“NOT approved”] in case not approved

As in detail stated from the checklist controlling the eligibility of costs stated in the invoice is not the responsibility of ERAs. The ERAs are only responsible from technical checks such as approval of six monthly progress reports, timesheets, provisional and final acceptances etc.

7.2 REGULATIONS ON TAX EXEMPTIONS

According to the first paragraph of the Article 26 under the title of “Rules concerning the taxes, customs and import taxes and duties and/or other taxes with an equivalent effect hereto” of Framework Agreement of Turkey-EU Instrument for Pre-accession Assistance (IPA), “the taxes, customs and import taxes and duties and/or other taxes with an equivalent effect hereto shall not be financed under the Instrument for Pre-accession Assistance unless stipulated otherwise in a sectoral agreement and financing agreement. This exemption covers also the co-financing provided by the Republic of Turkey”. The exemption and implementation rules specified in the first paragraph of Article 26 of IPA Framework Agreement are elaborated in General Communiqué for IPA Framework Agreement No:1 issued by Revenue Administration (Official Gazette:8.5.2009-27222). Pursuant to this the below exemptions are applicable in EU Contracts, the implementations are as follows:

7.2.1 IMPLEMENTATION OF VAT EXEMPTION

According to Article 26, Clause 2/b of IPA Framework Agreement, EC contractors shall be exempted from VAT for goods supplied, services rendered and works executed. Goods supplied and/or services rendered and/ or works executed for an EC contractor by a supplier/service provider to a EC contractor shall be exempted from the VAT as well. Such exemption shall only be applied to the goods supplied or services rendered or works executed which are connected with goods supplied or services rendered or works executed by EC contractor under an EC contract. According to the IPA Framework Agreement General Communiqué No:1 issued by Ministry of Finance, EC contractors shall pursue the following procedures in order to be able to benefit from primarily the VAT and all other exemptions:

1) To fill in tax exemption form and receive the approval of the Contracting Authority 2) To apply to the relevant authorities together with other necessary documents :


60

Declarations of Purchases Made under VAT Exemption Certificates EC contractors shall submit the notification table (Annex 8 of IPA Communique Annexes) to the authority, which granted VAT exemption form, for purchases below TL 3500 by using VAT exemption certificate after annotating and having it approved by ERA that “The expenses included in this table were made under EC Contract No: ..........”, once in a three-month period in a calendar year and until the end of the 25th day of the following month. For the purchases above TL 3500 made by using VAT exemption certificate, they shall prepare the notification table (Annex-7 of IPA Communique Annexes) without having it approved by ERA, and submit to the authority which granted VAT exemption form, once in a three-month period in a calendar year and until the end of the 25th day of the following month.

7.2.2 IMPLEMENTATION OF STAMP TAX EXEMPTION

According to IPA FWA 26/2-g; EC contracts shall not be subject to stamp or registration duties, or to any other charge having an equivalent effect thereto in Turkey. This exemption is applicable to related procedures and payment orders under EC contracts. However, the stamp tax exemption is not applicable to the “sub-contracts” between the EC Contractor and supplier/service provider.

7.2.3 IMPLEMENTATION OF TAX EXEMPTION IN IMPORTS AND CUSTOMS PROCEDURES

On the condition that a List of the Goods to be Imported (Annex-1a of IPA Communique Annexes) including the information related to the goods to be imported is prepared by the EC Contractor, it is approved by the ERA that such goods are within the scope of the EC Contract, and upon that such list and a copy of the VAT exemption certificate granted to the contractor by Tax Office are submitted to the relevant Customs Administration (Annex-1b of IPA Communique Annexes), goods in the mentioned list to be imported shall be exempted from customs or import tax, charges, VAT, SCT and other similar taxes and charges.

7.2.4 IMPLEMENTATION OF INCOME AND CORPORATE TAX EXEMPTION

Within the framework of the EC contracts financed by European Union or co-financed by European Union and Turkey, income of natural person EC contractors, who are not nationals and residents of Turkey, and work under these contracts, is not subject to income tax. Also income of the natural persons rendering services for an EC contractor and paid by EC contract budget who are not nationals and residents of Turkey, is not subject to income tax. On the condition that legal person EC contractors implementing an EC contract do not have a workplace or fixed base in Turkey, corporate income obtained by the implementation of EC contract is not subject to corporate tax. In addition, pursuant to the provisions of the agreements on the prevention of double taxation approved by Turkey and applicable for such natural and legal persons, natural and legal persons obtaining profit and/or income from EC contracts shall be subject to taxation in accordance with tax legislation in Turkey on the condition that they have a workplace or fixed base in Turkey. The amounts provided as grants to nationals in Turkey or natural persons residing in Turkey and legal persons having a workplace or fixed base in Turkey are taken into account as a part of commercial earning while determining income and corporate tax.


61

According to this, within the scope of EC Contracts, the amounts provided as grants to nationals in Turkey or natural persons residing in Turkey and legal persons having a workplace or fixed base in Turkey provided that they fulfil the obligations deriving from EC contract are taken into account as commercial earning and are subject to income tax, and as a part of commercial earning for corporate tax payers, and are included in corporate income and subject to corporate tax.

7.2.5 IMPLEMENTATION OF INHERITANCE AND TRANSFER TAX EXEMPTION

According to IPA FWA 26/2-e; those benefiting from projects and/or contracts and/or operations under IPA shall be exempted from “Inheritance and Transfer Tax” deriving from goods and/or derived privilege and/or funds transferred to them regardless of the means. Hence, no Inheritance and Transfer Tax Declaration shall be made with regard to such transfers. Implementation of Special Consumption Tax (SCT). Initially, under EC contracts, EC contractor shall pay SCT for purchases of goods subject to SCT from suppliers, which are not SCT payers. EC contractor shall prepare a list (Annex-10 of IPA Communique Annexes) of the goods procured within this scope once in a three-month period in a calendar year as of the starting date of the contract, have it approved by ERA after annotating that “The goods included in this table are within the scope of EC Contract No: ..........”, and include in the documents to be submitted for tax refund. Under EC contracts, it is possible to purchase goods from suppliers, which are SCT payers without paying SCT, without paying SCT, provided that a supply contract is signed with the supplier and it is approved by the ERA that the contract goods are within the scope of the EC contract. There is not any limit for supply contracts to be signed with SCT payers in purchases.

7.2.6 IMPLEMENTATION OF SPECIAL COMMUNICATION TAX

The expenses of EC contractor within the scope of Special Communication Tax are exempted from Special Communication Tax during the implementation period of the EC contract. Initially, EC contractor shall pay the special communication tax subject to this exemption. However, the expenses subject to exemption under EC contract shall be refunded to EC contractor in line with the following procedures and principals. For the refund of special communication tax already paid, EC contractor shall apply to tax office which granted its VAT exemption certificate or one of the tax offices listed in Annex 9 of IPA Communiqué Annexes in the event that VAT exemption certificate is granted by Revenue Administration s of invoices or similar documents of Special Communication Taxes paid.

7.2.7 IMPLEMENTATION OF MOTOR VEHICLE TAX EXEMPTION

According to IPA Framework Agreement, Article 26, Paragraph 2/i, besides the aforementioned taxes, customs and import taxes and duties and/or other taxes with an equivalent effect hereto, the following also fall within the scope of exemption: Motor Vehicle Tax. Air, sea and land transport vehicles procured by EC contractor within the scope of EC contract, and registered on behalf of itself in traffic, municipality, seaport registration or civil air vehicles etc. registration of Ministry of Transport, and to be transferred to ERA free of charge, are exempted from motor vehicle tax limited by the period and conditions of the EC contract. Initially, EC contractor shall have the vehicle purchased under EC Contract registered with relevant registration office, and pay the motor vehicle tax accrued during the implementation period of the


62

contract. Motor vehicle tax paid for motor vehicles purchased under the scope of the EC contract during EC contract period will be refunded upon request after the contract period ends and such vehicle is transferred to the ERA. EC contractor shall apply to authorized tax administration for the refund of the motor vehicle tax paid during contract period.

7.2.8 SUMMARY OBLIGATIONS OF ERAS RELATED TO REGULATIONS ON TAX

EXEMPTIONS:

The Consultants/Contractors are benefiting from some of the above specified tax exemptions in the condition that the below documents are approved by ERAs:

For the purchases made by Contractors/Consultants without VAT; - For the purchases above 3.500 TL, to approve the Contracts between the Contractor and

supplier/service provider; - For the purchases below 3.500 , to approve the list of contracts between the Contractor and

supplier/service provider in three monthly basis;

To approve documents according to the IPA General Tax Exemption Communique for IPA Framework Agreement No.1 introduced by the Ministry of Finance and its annexes for Attachments: 1/a, 8,10, etc. as detailly described above.

For further details with regard to aforementioned tax exemptions, please visit our web-site of Revenue Administration: http://www.gib.gov.tr/index.php?id=428&tx_ttnews[tt_news]=2066&tx_ttnews[backPid]=27&cHash=791e5a37af FOR MORE DETAILS REGARDING THE PAYMENT PROCEDURES WHICH ARE UNDER THE RESPONSIBILITY OF THE CA/OS, PLEASE SEE PRAG OR ANNEX 10 “SUMMARY – GENERAL INFORMATION ON PAYMENT RULES AND PROCEDURES”

CHAPTER 8 - MONITORING OF PROJECTS/OPERATIONS BY ERAS

8.1 INTRODUCTION

This section of the Implementation Guidelines has been prepared to guide and help ERAs with the

various responsibilities they will have monitoring projects/operations part-financed by the IPA.

This section starts providing basic working concepts to achieve a clear and fair understanding of what

monitoring means in the context of EU funded operation’s implementation. It then follows setting up

the general regulatory framework that will have to be followed by both the OS and the ERAs at the

time of monitoring the CSP’s operations and, ultimately, the actual Operational Programme. Finally,

this section sets out the framework outlining the procedures and necessary information for monitoring

the performance of operations funded under the CSP.

http://www.gib.gov.tr/index.php?id=428&tx_ttnews%5btt_news%5d=2066&tx_ttnews%5bbackPid%5d=27&cHash=791e5a37af

http://www.gib.gov.tr/index.php?id=428&tx_ttnews%5btt_news%5d=2066&tx_ttnews%5bbackPid%5d=27&cHash=791e5a37af


63

8.2 WORKING CONCEPTS: ACHIEVING A FAIR AND COMMON

UNDERSTANDING ABOUT THE TASK

Working Concept 1. Monitoring is the systematic collection of information (quantitative and qualitative

data) relevant to a particular Programme, Priority, Measure or Project.

Working Concept 2. Monitoring must be regarded as a fundamental part of both operation

management and programme management. It is important that all involved in implementing and

managing the activities, ie: ERAS and the Programme’s Operating Structure understand the need to

collect data at operation level.

Whilst monitoring requirements will inevitably place a burden on ERAs and the OS/CA, this will be kept

to a minimum consistent with the requirements of the regulation that rules this EU funded Operational

Programme.

Working Concept 3. It is also important to note that regular monitoring constitutes the fundamental

part to the process of evaluation: the assessment of how far a Programme, a Priority, a Measure or a

Project has progress towards its stated objectives.

Working Concept 4. For monitoring purposes, the operation is the basic unit of analysis at which

monitoring information will be collected.

Working Concept 5. In this way, individual operation level information can then be aggregated

upwards to show progress at each of the eight measures of the 3 Priorities that form part of the IPA’s

Component 3 Regional Competitiveness Programme. This process of aggregation of data from the

operation level upwards reflects the need to identify as closely as possible effects attributable to the

CSP itself.

Working Concept 6. The European Commission’s Guidelines at the outset of the current Programming

period included a series of working papers addressing monitoring issues. Following these working

papers, the CSP has categorised all monitoring data around two categories of indicators, output

indicators and result indicators:

Outputs are the tangible deliverables of the operation. They directly result from the activities carried out

in the project. They report on what the main ‘products’ delivered by the project are. They do not lead to a

qualitative judgment on the project’s outcomes. In other words, it is not because the project organises a

high number of basic information support events (example taken from an output indicator for the

Operational Programme’s Measure 2.1) that it will necessarily be successful. Output indicators are typically

measured in physical units such as the number of events, square meters enhanced for private sector

support or the number of enterprises involved or participating in a supporting activity.


64

Results are direct and immediate effects resulting from the project and from the production of the outputs.

They do not report on the ‘what’ but on why the project is delivering the specific outputs. The organisation

of training or the number of consultancy activities for networks or clusters (example taken from the

Operational Programme’s Measure 2.2) are only means to an end. These activities are carried out in order

to achieve specific effects that the result indicators should be able to assess and measure in quantified

terms. Therefore, compared to the outputs, they imply a qualitative value. They also have to be measured

in physical units such as the number of staff with increased capacity, or the number of networks/clusters

started to operate.

The figure below describes the interaction between these two types of indicators and the objectives of the Operations/Projects.

Figure 6: Interaction between different types of indicators and the objectives of the Operations/Projects

In parallel, the Operation Identification Sheet of the CSP operations distinguishes two types of indicators:

a/ Pre-defined indicators at programme level

Each project/operation is requested to fill in a certain number of pre-defined output and result

indicators according to the Measure and Priority that the operation belongs to.

ERAs in their OIS have to estimate their target value and therefore their contribution to the CSP’s

Measure and Priority overall targets


65

The approach proposed by each operation has to be realistic and it is therefore recommended not to

overestimate expectations regarding these indicators.

b/ Self-defined indicators

In addition to the pre-defined indicators, each operation has the opportunity to define its own output and

result indicators. These ‘self-defined’ indicators have to be provided at the relevant sections of the OIS. ERAs

which include additional indicators have to make sure that these indicators are meaningful and measurable

and that they do not repeat the programme pre-defined indicators. A clear distinction has also to be made

between output and result indicators.

Working concept 7. Finally, suitable Priority and Measure output and result indicators were identified

at the time for the CSP and targets have been set. Every operation financed by the Programme is

contributing to the achievement of the Programme indicators.

Output and Result indicators are also set for each operation accepted for assistance and that

information is included in the respective OIS.

In this way, ERAs have to acknowledge the fact that their assisted operation is contributing to the

realization of the relevant measure level targets and, thereby, to the priority and the CSP targets set

when the European Commission approved the Programme.

8.3 REGULATORY FRAMEWORK: WHY DO ERAS NEED TO MONITOR

THEIR RESPECTIVE OPERATIONS? AND WHY DOES THE OS/CA NEED

TO HAVE THE MONITORING INFORMATION FROM ERAs?

As indicated above, monitoring is about achieving a sound project management of the operations, but,

it also has to be regarded as an obligation included in the regulatory framework that rules the regional

competitiveness operational programme.

In this way, articles 61 and 169 of Commission Regulation (EC) No. 718/2007 of 12 June, establishing

an instrument for pre-accession assistance (IPA) require the production by the OS of an Annual

Implementation Report to be submitted to the Commission by 30 June each year and for the first time

by 30 June 2008. The aim of the annual report is to provide a comprehensive overview of the

implementation of the OP and it is central to the process of reviewing programme performance,

providing an annual opportunity to take stock of progress.

In parallel, the Financing Agreement between the Government of the Republic of Turkey and the

European Commission concerning CSP indicates that the OS shall maintain Monitoring Sheets for each

operation. These monitoring sheets will be presented to the Sectoral Monitoring Committee and

constitute a fundamental part of the above mentioned Annual Implementation Report.


66

In this respect, and to comply with the above, operations have to provide the necessary information

in order for the Programme to prepare the Annual Implementation Report and the Operation

Monitoring Sheets. In this respect, the OA signed between every single ERA and the OS/CA includes,

very concrete obligations in terms of reporting and monitoring:

The ERA will have to submit reports to the CA though MIS such as Progress Reports and the

Final Report concerning the operation and the progress in the implementation in due time.

The ERA will have to prepare all information and documents requested by the OS/CA until the

termination of the sustainability period of operation determined by the relevant parties.

This information required to the ERA by the OA has a practical translation in the OIS for every

operation, whereby under Section 6.2 the monitoring systems for the project are established.


67

8.4 PROCEDURES FOR MONITORING THE PERFORMANCE OF OPERATIONS FUNDED UNDER THE CSP

Reporting and monitoring is a two-way process, as monitoring by the Operating Structure requires reporting by the operations and reporting by the

operation is not effective if not monitored by the OS.

Although a certain “control factor” cannot be denied, the reporting and monitoring process is not meant to make the operation’s life difficult.

The bulk of monitoring data needed to directly monitor the operations will be collected mainly through two different means:

8.4.1 THE MANAGEMENT INFORMATION SYSTEM (MIS)

In accordance with Article 28 of Commission Regulation (EC) No 718/20073, Operating Structure shall be responsible for managing and implementing

the Operational Programme in accordance with the principle of sound financial management. For those purposes, it shall carry out a number of functions

that include: setting up, maintaining and updating the reporting and information system. In this respect, Management Information System (MIS) has

been designed as a shared web-based platform for monitoring of operations financed under Operational Programmes implemented within the scope

of 3rd and 4th components of IPA.

It is highly important that all the approvals should be given by the End Recipients of Assistance through Management Information System (MIS) of the

Contracting Authority.

There is another document which serves as a guideline for the use of this system available as Annex 9-MIS Portal User Manual.

8.4.2 THE PRODUCTION OF A THREE-MONTHLY PROJECT MONITORING REPORT (PMR)

The Project Monitoring Report is a core document since it represents the main channel of information between the operations and the programme.

This also means that the operation monitoring report will be the main source of information to demonstrate the programme’s achievements and

3 https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:170:0001:0066:EN:PDF

https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:170:0001:0066:EN:PDF


68

usefulness. In particular, it will provide the raw material to produce the analysis of the programme’s achievements to be included in the Sectoral Annual

Implementation Report to the European Commission.

ERA should therefore not consider the monitoring report only as an administrative and compulsory task but it should be used as a means to communicate

and promote the projects’ results and successes. Moreover, it should be a core instrument to achieve a sound management and implementation of the

operation itself. By doing this reporting exercise, the ERA will keep track of the project and will have a powerful tool to support decision making in the

actual operation.

This report will therefore provide with a good overview of the project activities and spending in the given period. It is the ERA’s responsibility to collect

and compile the information from all contractors and actors involved in the operation’s implementation and putting them together into one report. The

Project Monitoring Report form will be available on the CSP’s web site and will have to be submitted both by official letter and e-mail to the OS.

A number of points need to be highlighted at the time of producing theProject Monitoring Report:

1. First of all, the basic principle of project/operation monitoring implies that activities and outputs are monitored against what was originally foreseen

in the OIS. Any ‘deviation’ from the original plans has to be clearly justified in the report.

2. Secondly, the way these activities and outputs are described in the project monitoring report has to be fully consistent (i.e. the information provided

in the indicators’ section has to be in line with the information provided in the activities and outputs sections).

3. But beyond this minimum requirement, the aim is also to get as much as possible qualitative information on the lessons learnt and results achieved

within the project and ERAs are encouraged to be as precise as possible in the information reported every three-months.

4. Before elaborating the Project Monitoring Report, ERAs should follow the two steps as described below:

- In order to avoid misinterpretation, ERAs should carefully check the definition of each indicator included in their respective Operation Identification

Sheet.


69

- Each figure reported in the indicator sections of the monitoring report needs to be duly justified in the text sections of the report itself. Quantity is not

necessarily a sign of quality and ERAs should be rather cautious when completing the indicators.

Any information which is provided by a contractor (e.g. production and delivery of training for SMEs) but on which the ERA does not have any evidence

should not be reported in the report and in particular in the indicator section. This remark is particularly important for result indicators which can be

filled in only if evidence of the results can be provided to the Programme.

8.4.3 BASIC CONTENTS OF THE PROJECT MONITORING REPORT

Project Monitoring Report will include at least the following sections:

A description of project activities and results in the reporting period;

Effectiveness and efficiency of implementation: Is the project progressing in line with the initial time plan presented in the OIS?

The progress towards the achievement of the operations’ objectives, assessed mainly through the output and result indicators as included in the

respective OIS.

A description and justification of expected and realised changes and/or deviations to the project plan, budget or timetable.

Technical Financial or legal problems encountered

An Action Plan for the up-coming reporting period.

Visibility and Communication

Any additional information should be collected by the OS through project visits. A template for the Third-Monthly Monitoring Report can be found in

Annex 11.

Once monitoring information has been gathered, the ERAs should enter it into the MIS without delay.


70

In this way, each operation’s Monitoring Report will be closely monitored by the Strategic Programming and Monitoring&EvaluationDepartment at the

OS that will work together with the Project Management Department in following up the progress and performance of all the operations co-financed

by the CSP.

8.4.4 REPORTING PROCEDURE

The reporting procedure for CSP operations can be summarised as follows: a) Each contractor sends a report to the ERA within the deadlines agreed with the contractor/consultant and ensures that their part of the reported

activities has been prepared in compliance with the given specific requirements.

b) On the basis of the individual reports, the ERA compiles the operation monitoring report for the whole operation.

c) The ERA performs the checks on the type and quality of information received and verifies that at least the minimum required information has been

provided.

d) The ERA aggregates all the information and prepares sections accordingly.

e) The ERA submits the Project Monitoring Report to the OS in both electronic and paper version. The paper version has to carry the signature and

stamp of the ERA.

f) The Strategic Programming and Monitoring & Evaluation Department checks the report and if necessary sends clarification requests to the ERA.

g) Once all points have been clarified, the operation monitoring report is approved.

The figure below provides with an overview of the overall process:


71

Figure 7: Overview of reporting procedures


72

8.4.5 TIME SCHEDULE FOR MONITORING REPORTS SUBMISSION

An appropriate time at which to collect this regular monitoring information from operations will be set.

Monitoring information will be collected from operations on a quarterly basis. There will be four cut off

dates for the preparation of the Project Monitoring Reports:

31 March of the relevant year,

30 June of the relevant year,

30 September of the relevant year,

31 December of the relevant year.

Project Monitoring Reports will have to be submitted within one month from each of the above cut off

dates, which in practice means that End Recipients should be submitting to the Operating Structure their

respective reports by 30th April, 31st July, 30th October and 31st January.

The Operating Structure will analysis, request clarifications and approve the Project Monitoring Reports

within two months of the submission date.

The Operating Structure makes a strong reference to the ERA’s responsibility for timely gathering and

maintaining at regular intervals all monitoring and evaluation data relevant to the performance of the

project and its contribution to the OP’s relevant Priority and Measure targets.

CHAPTER 9 - HORIZONTAL ISSUES

9.1 PUBLICITY

This section is aimed at both assisting ERAs to understand and follow the Communication & Visibility Manual, as well as to provide ideas and advice on how the promotional activities can be as effective as possible.

Responsibilities of ERAs and contractors/consultants regarding publicity

In implementing CSP programme and any other EU supported projects, ERAs and contractors are obliged to follow “the EU’s Communication & Visibility Manual” (revised version, 2018).

https://ec.europa.eu/europeaid/sites/devco/files/communication-visibility-requirements-2018_en.pdf

In addition to this Manual, another document, “Complement to the Communication and Visibility Manual for European Union External Actions - EU-funded Projects in Turkey under the Decentralized Implementation System (DIS)” is also suggested for sound implementation of the EU visibility rules in Turkey.

http://www.avrupa.info.tr/eu-funding-in-turkey/visibility-guidelines.html

The Contractor must also follow the visibility rules set out in the visibility guideline of the Programme.


ERAs EU visibility responsibilities have been identified in the Operational Aggrement, article 11;

https://ec.europa.eu/europeaid/sites/devco/files/communication-visibility-requirements-2018_en.pdf




73

“ERA will comply with the rules and principles that are stated in the “COMMUNICATION AND VISIBILITY MANUAL FOR EUROPEAN UNION EXTERNAL ACTIONS” in all written/printed/visual materials related to its operation.”

All communication activities which are implemented by ERAs/Contractors should be closely coordinated with the stakeholders (OS/CA and EUD) and jointly executed.

All contractors are responsible for making the contribution of EU visible in their projects. The purpose is to ensure that actions that are wholly or partially funded by the European Union (EU) incorporate information and communication activities designed to raise the awareness of specific or general audiences of the reasons for the action and the EU support for the action in the country or region concerned.

Not only the consultants/contractors for services, supplies or works, also ERAs must take the necessary measures to ensure the visibility of the EU and Turkish Ggovernment’s co-financing.

For both ERAs and contractors, process of sound communication and visibility should be achieved through,

1. Use of written and visual EU identity elements (as compulsory requirements for all contractors and ERAs);

2. Use of tools to enable the development of a dynamic communication strategy, communication & visibility plan that will highlight the achievements of the EU support, in case available budget and resources exist. (Please see “the EU’s Communication & Visibility Manual” for details).

EU Publicity rules (written and visual EU identity elements)

A summary of the EU publicity rules provided below;

LOGOS

Any outputs produced, supplies or equipment delivered, all types of materials produced must visibly carry logos of,

- the EU-Turkey Cooperation Logo - Ministry of Industry and Technology logo (as OS/CA)

EU-Turkey co-operation logo is comprised of wavy EU and Turkish flags side by side as shown below:

The height/width ratio in all sizes must be 6/15. For correct use, the EU-Turkey cooperation logo should not be copied from another document, but, downloaded from the link provided in the previous page.

The EU-Turkey cooperation logo should always be at least twice more prominent than other logos and flags. It should always be used at top and preferably at middle with the text below;

“This project is co-financed by the European Union and the Republic of Turkey” (“Bu proje Avrupa Birliği ve Turkiye Cumhuriyeti tarafından finanse edilmektedir”).

The logo of the Ministry as OS/CA logo should be placed at the lower end of the material and on the left. For correct use, this logo should not be copied from another document, but, downloaded from the link www.rekabetcisektorler.sanayi.gov.tr

For the other logos’ placements please check the visibility guideline of the Programme.

This project is co-financed by the European Union and the Republic of Turkey


74

DISCLAIMER

Reports/Publications produced in the frame of the EU project should contain the following disclaimer, since The EU will not be responsible under any circumstances for the contents of all communication items prepared by the Consultant /Contractor and/or partners.

“This publication has been produced with the financial assistance of the European Union and the Republic of Turkey. The contents of this publication are the sole responsibility of <name of the author/contractor/implementing partner/international organisation> and can in no way be taken to reflect the views of the European Union and/or The Ministry of Industry and Technology.”

REPORTS

If the report is to be made available to the public, the cover must use the report presentation template. (Please check the link provided in the previous page. )

Contractors should make sure that at least one section of their reports (interim and final) contains a detailed description and evaluation of their communication/publicity/dissemination activities (giving concrete examples) and their impact (illustrating this with a file of press cuttings and audiovisual transcripts whenever possible).

COMMEMORATIVE PLAQUES

Permanent commemorative plaques are an effective way of acknowledging the involvement of the EU in the construction or planning of a permanent structure such as houses, clinics, factories, institutions, training centers, roads, bridges, etc. As part of the opening ceremony of permanent structures, placement of a permanent plaque in the most visible part of the building, such as the main entrance or in front of the building. When appropriate, the plaque could contain the following sentence: “This [name of the structure] was funded by the European Union and the Republic of Turkey” with the cooperation flag placed underneath it.

STICKER

All purchased equipment must be marked with a sticker indicating the co-funding provided by the EU. The stickers should carry the EU-Turkey cooperation logo.

Considering supplies, vehicles and equipment, the EU-Turkey cooperation logo should be placed visible and twice as prominent to the other logos; contractor and partner logos may also be used. The following sentence should be placed visible and legible by “Provided with the support of the European Union and the Republic of Turkey.” And also should include «Fixed asset /Demirbaş No: XX»

TEMPLATES

Please see the Templates for «Communication Products» in Communication and Visibility Manual.

EU VISIBILITY AFTER COMPLETION OF THE ACTION

An action may continue to be managed by the ERA after the EU-funded phase of the action has been

completed. In this case, six months after the phase funded by the EU has finished, no EU symbol may be

included in any communication tools of the action, with the exception of any commemorative plaques.

However, the following sentence must be included on material, with the same prominence as was given

to the EU-Turkey cooperation logo:

"The initial phase <dates> of this project/programme was supported by the European Union and the

Republic of Turkey".

INTERNET LINKS

All publications produced by contractors or ERAs with the support of the EU and the Republic of Turkey

should refer to the project websites (if exist), OS/CA website and official EU sources for more information

and, in particular, to the EuropeAid home page and/or EU Delegation home page.


75

OTHERS

In case of any suspicions arising from the interpretation of the EU Communication & Visibility Manual,

ERAs should consult with the OS/CA and EU

All publicity/visibility documents/materials shall be sent to OS/CA (Project Management Department)

for approval before production. In case of inconformity with EU rules there will be sanctions by EU.

9.2 INTERNAL CONTROL, IRREGULARITIES AND AUDITS

According to the Commission Regulation (EC) No 718/2007, art. 2, p. 6 irregularity is any infringement of

a provision of applicable rules and contracts resulting from an act or an omission by an economic operator

which has, or would have, the effect of prejudicing the general budget of the European Union by charging

an unjustified item of expenditure to the general budget.

The ERA is responsible for prevention, detection, reporting, and subsequent resolution of all cases of

irregularities related to its partners and contractors on the project, and in turn is subject to checks for

irregularities of all authorities involved in the audit trail.

According to point “a” of article 1, paragraph 1 of the Convention on the protection of the European

Communities’ financial interests fraud is any intentional act or omission relating to:

- the use or presentation of false, incorrect or incomplete statements or documents, which has as its

effect the misappropriation or wrongful retention of funds from the general budget of the European

Communities or budgets managed by, or on behalf of, the European Communities,

- non-disclosure of information in violation of a specific obligation, with the same effect,

- the misapplication of such funds for purposes other than those for which they were originally granted,

- misapplication of a legally obtained benefit, with the same effect.

The experts of the OS/CA and ERAs should know the definition of fraud in order to assess the possible

consequences in establishing the violation. The team leaders managing projects sign a declaration that

they are familiar with the definitions of irregularity and fraud and should familiarize the appropriate team

members with them.

The first action that an employee of the ERA should take if there is suspected irregularity is to inform the

irregularity officer of the OS/CA. The irregularity officer will examine the case and will give clear advice

on what action should be taken.

In case of suspected conflict of interest of the irregularity officer with the case of the suspected

irregularity the ERA can submit the information directly to one or several of the following authorities:

The NAO The Audit Authority AFCOS OLAF The European Commission


76

The reporting could be done at the following addresses:

For NAO and Audit Authority;

T.C. Hazine ve Maliye Bakanlığı, İnönü Bulvarı No:3606510 Emek/ ANKARA

Tel: 0312 204 60 00 E-mail: [email protected]

For AFCOS;

Devlet Denetleme Kurulu, Cumhurbaşkanlığı, Tel: 0 312 525 37 54-64, E-Posta : [email protected]

For OLAF;

European Anti-Fraud Office, OLAF - European Commission Rue Joseph II, 30 1000 Brussels

E-mail: http://ec.europa.eu/anti_fraud/contacts/index_en.htm

For European Commission;

European Commission, Rue Archimède, 73 1000 – Bruxelles

E-mail: http://ec.europa.eu/

When sending a signal for irregularity is necessary to specify:

the number or the project/contract title; to describe the irregularity in greater detail

Audits

An audit is an examination and analysis of the management of financial resources and the reporting of

the performance of the project/contract. The purpose of the audit is that the ERA improves the

performance in implementation and accountability of the project, in spending responsibly and effectively

the designated for that purpose financial means.

The ERAs as part of an audit trail can be audited by:

The Internal Audit of the OS (Internal Audit Unit of Ministry of Industry and Technology) The Audit Authority in Turkey The European Commission (auditors of the Commission services); The European Anti-Fraud Office (OLAF); The European Court of Auditors; Turkish Court of Accounts. The audit of the ERAs and specifically OS/CA is performed to verify the expenditures declared in

implementing the contracts/projects were carried out in a lawful and proper manner according the

provisions of the contracts, regulations and all acts related to the expenditure of financial means.

ERAs are required to allow and to give access to all audit bodies and external auditors authorized to carry

out checks, to verify through research of documentation or on-the-spot checks the implementation of

the project and to conduct a full audit, if necessary on supporting documents, information and persons

related to project financing.

mailto:[email protected]


77

All external audits may be conducted within three years after completion of the Operational Programme

in respect of contracts for granting financial assistance as well as to the completion of any administrative,

investigative or judicial proceedings.

9.3 ARCHIVING PROCEDURES FOR ERAs

All documents under the project related to preparation, execution and reporting (including received audit

or inspection reports) shall be kept in a separate file with an inscription containing the name and number

of the Contract. The file shell contains also copies of all the documents.

The ERA is obliged to provide access to the places where the file with all the records is kept and to

cooperate fully with the representatives of all the competent authorities at national and European level

that could execute checks, verifications and audits.

The ERA is obliged to ensure compliance by the sub-contractors for procurement concluded on the basis

of the contract with the requirements for storage of documents contained in the present Guidelines.

Recommended structure of the project file:

1. Label (number and project/contract title)

2. List of documents

3. Project proposal and modifications made

4. Contract for the provision of financial assistance

5. Annexes and modifications to the contract

6. Documentation of organized and implemented tender procedures in accordance with the PRAG rules

(including tender documentation – ToRs, technical specifications etc., tender evaluation reports,

decisions, correspondence and decisions on appeal, etc.) according the responsibilities of the ERA

7. Contracts with sub-contractors (if applicable)

8. Copies of Pre- approvals of project implementation documents such as (timesheets, incidental budget

approval requests, STE approval requests, provisional/final acceptance certificates, Progress reports,

Interim and Final reports etc.

9. Reports from on-the-spot visits

10. Reports of irregularities detected

11. Data from completed measures of publicity and awareness (prints of publications, photographs, etc.).

12. Audit reports

According article 48 of Commission Regulation (EC) No 718/2007 all documents related to the project

shall be retained by the ERAs for at least three years after the closure of the Operational programme.

This period shall be interrupted either in the case of legal proceedings or at the duly motivated request

of the Commission.