Sustainable Economic Development of the Sudurnes region, Iceland

Operational Programme Preparation: Contents and Processes

JOSE MATEOS MORENO

Ásbrú, January 2012

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Objectives of This Session

Improve knowledge of • Contents and requirements of an

Operational Programme (OP)• OP process• Stakeholders and partnership issue• Stages of OP process

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Functions of OP

• Constitutes a Multi-annual Programming document • Supports Candidate Countries in policy development• Prepares for the implementation and management of

future Cohesion Policy• Implements the objectives and priorities of the SCF,

indicating which activities will be supported and to which extent

• Identifies specific operational priorities• Contains selected measures and projects

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Requirements and Contents of OP (1) (Art. 155 IPA Implementing Reg.)

1. Description of existing situation, SWOT and key disparities

2. Overview of the consultation process3. Strategy: Vision and Strategic Objectives

– Priority axes– Specific objectives and measures– Indicative list of major projects (actions)– Horizontal issues (equal opportunities etc)

4. Justification in the light of the concentration principle, sectoral or geographical under IPA assistance

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Requirements and Contents of OP (2)

4. Description of Technical Assistance Operations

5. For each measure: FB + selection criteria

6. Financial plan with allocation according to priority axis and specific objectives

7. Quantified indicators with effects on results and impacts? + evaluation activities

8. Ex-ante evaluation (main conclusions)

9. Implementation provisions (incl. communication)

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OP Preparation• By the candidate country in close dialogue with the

Commission services• In the framework of agreed structures• Drawing from existing documentation and available

Technical Assistance (e.g. National /Regional strategies, Sectoral Master Plans, etc.)

• In consultation with the relevant partners (stakeholders)

• Ex-ante evaluation in parallel with OP preparation. The same for Strategic Environmental Assessment (SEA)

• Submission by the competent national authority (after SCF)

• Approval by the Commission

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OP Stakeholders

OP Stakeholder = any citizen, resident, client, organisation or group who / which could be affected directly or indirectly by the OP process

OP Stakeholders include:– Final Beneficiaries (Agencies, Regions,

Municipalities, Companies)– (Co)Financeers/Contributors – Experts (Research institutes etc.)– Others likely to be affected (Interest Groups,

Trade Unions, Chambers of Commerce etc.)

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Main Stages of OP Preparation

Organisation of OP process

Implementing Arrangements

Negotiations with EU

SWOT Analysis

Strategic Goals and Priorities

Budget Allocation and Impacts

Ex-ante Evaluation

1 to 2 years

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Main Stages of OP Preparation

Organisation of OP process

Implementing Arrangements

Negotiations with EU

SWOT Analysis

Strategic Goals and Priorities

Budget Allocation and Impacts

Ex-ante Evaluation

1 to 2 years

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Step 1) SWOT Analysis

• Strengths

• Weaknesses (main problems/disparities)

• Opportunities

• Threats

Summary SWOT with prioritised main disparities

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Sector Specific SWOT Example(Environment OP Croatia)

Strengths– General: Unique natural environment– Wate:Specialized companies and public utility companies ready to use

integrated waste management (WM) systems– Water:Croatia has relatively abundant & good quality fresh waterWeaknesses: – General:lack of financial resources– Wate: Insufficient coordination of waste streams management on local

level due to the lack of staff– Water:Water losses significant, age and insufficient maintenanceOpportunities– General:Grants from EU pre-accession funds– Wate:Rationalisation of waste sector public utility companies– Water: Harmonization with EU standards– Threats– General:Disparities between environmental protection and economic

development– Wate:Approx. 3,000 illegal waste dumps and 9 hot spots– Water:All national river basins have transboundary character

• Recommendations?

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Main stages of OP-preparation

Organisation of OP process

Implementing Arrangements

Negotiations with EU

Strategic Goals and Priorities

Budget Allocation and Impacts

Ex-ante Evaluation

1 to 2 years

SWOT Analysis

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Step 2) Strategic Goals and Priorities

• Overall objective • Define strategic goals for priorities• Create commitment on strategic sector

goals and vision with all stakeholders

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Example: OP ENV Strategic Objectives and PrioritiesOP Environment Croatia (example)

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Step 3) Budget Allocation and Impacts (1)

• Budget allocation: – Top down: NDP and Ministry priorities– Bottom up: costs estimates of measures / projects

• Co-financing possibilities: Line Ministries, Regions, EBRD

• Anticipated IPA support from EU • Agreement on budget allocation and co-financing

with Line Ministries and partners crucial

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Step 3) Budget Allocation and Impacts (2)

Impacts:• Indicators for monitoring and evaluation

of progress in OP implementation • Quantify expected Results and Impacts?

of OP• Integrate in Monitoring Information

System (MIS)

Sustainable Economic Development of the Sudurnes region, Iceland

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Sources of information for the OP financial plan

• Financial allocation in the SCF• IPA Funds Financial Indications

– Multi-annual Planning Document– Multi-annual Financial Framework

Sustainable Economic Development of the Sudurnes region, Iceland

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OP Financial Plan Contents

• OP budget break-down by “priority axis”, separately by year, and total period (initially 2007-2009)

• OP budget break-down updated annualy on basis of Multi-annual Indicative Financial Framework (MIFF)

• It should contain:– IPA support and contribution rate– National public contribution– Estimated private contribution and grant and loans from IFIs

(for information)– Technical Assistance - maximum 4%

Sustainable Economic Development of the Sudurnes region, Iceland

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Template for OP Financial Plan

YEAR

N

"priority axis" a (= Sum a1, a2,)

Measure a1Measure a2

"priority axis" b (=Sum b1, b2)

...

Measure b1

Tech. assistance 

...

TOTAL YEAR N

Total Public

eligible cost

UE

IPA

CC

Nat Public

IPA cofin

rate (calcul)

For information

Private IFI

(x+y) x y x/(x+y)

%

€€

€€

€€

€€

€€

€ € €

€ € € € €

€ € €

€

€

€

€

€

€

€

€

€

€

€

€

%

%

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Step 4) Implementing Arrangements

• Responsibilities and tasks of bodies (Operating Structure, FBs, CA, internal control etc)

• Tools and Systems (Monitoring Information System, Guidelines)

• Staffing and HRD (incl. Training etc.)

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Step 5) Ex-ante Evaluation of OPs

• Independent ex-ante evaluation• Important to take into account for commitment

from European Commission• Important tool for improving OP quality • Purpose of ex-ante evaluation – to assess

quality of OPs– Relevance: are priorities relevant for main problems

and opportunities in Montenegro?– Effectiveness of OPs in achieving goals– Efficiency of OPs

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Consistency and Overlap - Check OPs and SCF

• Careful reading and check for inconsistencies:– Macro-economic data and assumptions must be

standardised – General structure should be standardised– Choice of priorities has to reflect SWOT

• Discussion with Ministries OPs on OPs and coordinator SCF

• Adapting SCF and OPs

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Step 6) Negotiations with EU

• Agree OP with all partners• Create consistent basis with fixed teams

and strategy for negotiations with EU• Community Support Framework• Communication of OP (visibility)• Project promotion to beneficiaries in

order to create a project pipeline

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See examples of OP’s