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Sapard National Plan for Bulgaria

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Sapard National Plan for Bulgaria R E P U B L I C O F B U L G A R I A NATIONAL AGRICULTURE AND RURAL DEVELOPMENT PLAN over the 2000 – 2006 period UNDER THE EU SPECIAL ACCESSION PROGRAM FOR AGRICULTURE AND RURAL DEVELOPMENT (SAPARD) National Agriculture and Rural Development Plan 2000-2006 TABLE OF CONTENTS 1 CURRENT DEVELOPMENT OF AGRICULTURE AND RURAL AREAS 8 1.1 GENERAL DESCRIPTION 8 1.1.1 Bulgaria’s Geographical Location in Europe 8 1.1.2 Population and Administrative Division 9 1.1.3 Macroeconomic Situation 10 1.1.4 Rural Area Characteristics 12 1.1.5 Characteristics of Less Developed Rural Areas 18 1.2 SECTOR ANALYSIS 21 1.2.1 Agriculture and Forestry 21 1.2.2 The Food Processing Industries 43 1.2.3 Foreign Trade 49 1.3 DISPARITY ANALYSIS 54 1.4 STRENGTHS AND WEAKNESSES OF BULGARIAN AGRICULTURE AND PROCESSING INDUSTRY 57 1.5 OVERVIEW AND ASSESSMENT OF SUPPORT AND ASSISTANCE TO AGRICULTURE AND FORESTRY 62 1.5.1 PHARE Program 62 1.5.2 Non- Community Support 77 1.5.3 Government Support 78 2 AN OVERVIEW AND ASSESSMENT OF THE NATIONAL AGRICULTURE AND 83 RURAL DEVELOPMENT PLAN 2.1 STRATEGY FRAMEWORK 83 2.2 OBJECTIVES OF THE PLAN 85 3 STRATEGIES AND PRIORITIES FOR SAPARD ASSISTANCE 88 3.1 ALLOCATION OF FUNDS TO PRIORITY AREAS AND GEOGRAPHICAL 97 SCOPE 3.2 COORDINATION BETWEEN ECONOMIC DEVELOPMENT PLAN, PHARE 101 2000, AND SAPARD 4 ELIGIBLE MEASURES 102 MEASURE 1.1. INVESTMENTS IN AGRICULTURAL HOLDINGS 102 MEASURE 1.2. IMPROVING THE PROCESSING AND THE MARKETING OF 127 AGRICULTURAL AND FISHERY PRODUCTS SUBMEASURE 1.2.1. WHOLESALE MARKETS 142 MEASURE 1.3. DEVELOPMENT OF ENVIRONMENTALLY-FRIENDLY 149 AGRICULTURAL PRACTICES AND ACTIVITIES MEASURE 1.4. FORESTRY, AFFORESTATION OF AGRICULTURAL AREAS, 161 INVESTMENT IN FOREST HOLDINGS, PROCESSING AND MARKETING OF FORESTRY PRODUCTS MEASURE 1.5. SETTING UP PRODUCER GROUPS 174 MEASURE 1.6. MANAGEMENT OF THE WATER RESOURCES 183 MEASURE 2.1. DEVELOPMENT AND DIVERSIFICATION OF ECONOMIC 195 ACTIVITIES, PROVISION OF MULTIPLE ACTIVITIES AND ALTERNATIVE INCOME MEASURE 2.2. RENOVATION AND DEVELOPMENT OF VILLAGES, 210 PROTECTION AND CONSERVATION OF THE RURAL HERITAGE AND CULTURAL TRADITIONS MEASURE 2.3. DEVELOPMENT AND IMPROVEMENT OF THE RURAL 218 INFRASTRUCTURE MEASURE 3.1. IMPROVEMENT OF VOCATIONAL TRAINING 225 MEASURE 4.1. TECHNICAL ASSISTANCE (PROGRAMME) 237 5 FINANCIAL PLAN, RATE OF ASSISTANCE AND COMMUNITY 241 CONTRIBUTION RATE May 21st , 2002 2 National Agriculture and Rural Development Plan 2000-2006 6 NATIONAL LEGISLATION 256 6.1. GENERAL LEGAL ACTS 256 6.2. PROGRESS SINCE LAST REGULAR REPORT OF THE EC IN OCTOBER 1999 276 6.2.1 Agriculture 276 6.2.2 Forestry 285 6.2.3 Introducing EU requirements in Agri-Statistics 286 6.2.4 Fisheries 286 7 ADMINISTRATION AND ADMINISTRATIVE PROCEDURES 289 7.1. ADMINISTRATION 289 7.1.1 Ministry of Agriculture and Forestry 289 7.1.2 SAPARD Agency 289 7.1.3 Managing Authority 293 7.1.4 Monitoring Committee 293 7.1.5 SAPARD Agency Structure 294 7.2. DESCRIPTION OF SELECTION PROCEDURE FOR ELIGIBLE PROJECTS 296 7.3. FINANCIAL MECHANISMS 302 7.3.1 Payment Mechanism and Declaration of Expenditure 302 7.4. INFORMATION AND PUBLICITY 303 8 PARTNERSHIP 305 9 PRIOR APPRAISAL OF THE PLAN 313 9.1. EX- ANTE EVALUATION COMMENTS ON THE CONCLUSION AND 313 RECOMMENDATIONS MADE BY THE INDEPENDENT EVALUATORS 9.2. EXECUTIVE SUMMARY OF THE PRIOR APPRAISAL 315 9.2.1 Analysis of the current situation 315 9.2.2 Assessment of the relevance and consistency of the proposed strategy 316 9.2.3 Assessment and quantification of the expected impacts of the selected 318 priorities 9.2.4 Proposed implementing arrangements 319 10 APPENDIX 320 APPENDIX 1А LIST OF LESS DEVELOPED RURAL AREAS IN BULGARIA 320 APPENDIX 1B LEVEL OF REGISTERED UNEMPLOYMENT PER MUNICIPALITIES 321 APPENDIX 1C LIST OF RURAL AREAS BY MUNICIPALITIES 327 APPENDIX 1D MUNICIPALITIES WITH POTENTIAL FOR RURAL TOURISM 333 DEVELOPMENT APPENDIX 2 DISPARITIES WITH THE EU 334 APPENDIX 3 STATISTICAL INFORMATION ON FISHERY 338 APPENDIX 4 SUPPORT PHARE-SAPARD 355 APPENDIX 5 MAPS 356 LIST OF TABLES Table 1 Distribution of population in Bulgaria in 1998* 9 Table 2 Bulgaria: Main Economic Indicators 10 Table 2a Average Unemployment 1995 -2000 11 Table 2b Employed persons according to their sex 1995-1999 12 Table 3 Distribution of Population by Type of Settlement 12 Table 4 Distribution of Villages By Number of Inhabitants 13 Table 5 Social Infrastructure in Rural Areas (1996) 14 Table 6 Fourth-Class and Agricultural Road Network in Rural Areas (1996) 15 Table 7 Telephone Network in 1998 16 Table 8 Post Office Network 17 Table 9 Share of Agriculture and Forestry in the National Economy in 1998* 21 Table 10 Employment in Agriculture (1989-1998) 23 Table 11 Land Use 23 Table 12 Agricultural Land by Form of Land Use in 1998* 24 Table 13 Farm Structure and Relevant Land Area under Crops in 1997 24 Table 14 Structure of Private Agricultural Holdings by Size of Arable Land in 1996 25 May 21st , 2002 3 National Agriculture and Rural Development Plan 2000-2006 Table 15 Distribution of Private Farmers by Degree of Market Orientation and Gross Value of Output 26 Table 16 1998 Land Area, Crop Yields and Output Relative to 1989 27 Table 17 Animal Breeding 29 Table 18 Household Consumption of Basic Food Products (annual average per capita) 30 Table 19 Available Farm Machinery 31 Table 20 Depreciation of Farm Machinery (1996) 31 Table 21 Investments in Farm Machinery 32 Table 22 Use of Fertilizers over the 1981-1999 Period (in tons) 37 Table 22a Foreign Investments in the Food-processing Industry per Years and Sub-branches as of 30 June 1999 44 Table 23 Bulgarian Agricultural Exports and Imports 50 Table 24 Utilisation of Preferential Export Quotas to the EU 51 Table 25 PHARE Program Agriculture - 1991 - 1997 63 Table 26 Projects for Improvement of Veterinary and Phytosanitary Control Financed by 77 PHARE National Programs for 1998, 1999, and 2001-2006 Table 27 1998 Investment Credit Structure 80 Table 28 Structure of Investment Credit as at December 31, 1999 80 Table 29 Expenditures of the Land Improvement Fund over the 1994-1998 Period 81 Table 30 Government Budget Allocations for the Construction of a Fourth-Class Road 82 Network over the 1995-1998 Period Table 31 Sector Priorities of the Strategy for Achievement of Objective One of the Plan 92 Table 32 SAPARD RDP 2000-2006 of Bulgaria: Employment forecast with SAPARD 94 intervention for Subprogramme 1 Table 33 SAPARD RDP 2000-2006 of Bulgaria: Employment forecast with SAPARD 97 intervention for Subprogramme 2 Table 34 Indicative Estimate of the Needed Funds for the Implementation of the NARDP 241 by Priority Areas and Investment Sources Table 35 Indicative estimate of the Needed funds for the Implementation of the NARDP by 241 Investment Source and Year Table 36 Financial Plan 2000 - 2006 242 Table 37 Financial Plan by Years 243 Table 38 Financial Plan by Measures 250 Table 39 Projects liable to EIA, according to the Environment Protection Act, related to the 265 Rural development LIST OF FIGURES Figure 1 Location of Bulgaria in Europe 8 Figure 2 Territorial Distribution of MAF and SFA Regional Offices 9 Figure 3 Less developed rural areas 19 Figure 4 Gross Added Value by Sectors – (as % of GDP) 22 Figure 5 Employment in Agriculture and Forestry 22 Figure 6 Size Distribution of Bulgarian Private Farmers According to the Land Cultivated and the Gross Value of Production 26 Figure 7 Land Resources in Bulgaria and EU member states 54 Figure 8 Employment in Agriculture in Bulgaria and EU Member States 55 Figure 9 Input Consumption 56 Figure 10 Strategy for the Achievement of Objective One of the National Agriculture and 91 Rural Development Figure 11 SAPARD Priorities in the Strategy for the Achievement of the Objective One of the 93 National Agriculture and Rural Development Plan Figure 12 Objectives and Priorities of the Plan 98 Figure 13 Contribution of the Measures to the Objectives of the National Agriculture and 240 Rural Development Plan Figure 14 Organizational chart of SAPARD Agency 295 Figure 15 Payment mechanism upon decision taken 303 May 21st , 2002 4 LIST OF ABBREVIATIONS AA Agricultural Academy ACFS Agricultural Capital Fund Scheme AMIS Agricultural Market Information Service APAU Policy Analysis Unit BANSIC Bulgarian Agri-statistical Centre BGL/BGN Bulgarian Lev CAP Common Agricultural Policy CEEC Central and Eastern European Countries CEFTA Central European Free Trade Agreement CIS Community of Independent States CMEA Council for Mutual Economic Assistance EAD Form of Legal Entity – meaning “PLC” EFTA European Free Trade Agreement EU European Union FAO Food and Agricultural Organization FRYOM Former Yugoslavian Republic of Macedonia GAV Gross Added Value GDP Gross Domestic Product LAOs Local Advisory Services LDRR Less Developed Rural Regions LOUAL Law on the Ownership and Use of Agricultural Lands LTA Long Term Assets MAF Ministry of Agriculture and Forestry MEW Ministry of Environment and Waters MI Ministry of Industry MLCs Municipal Land Commissions MRDPW Ministry of Regional Development and Public Works MTT Ministry of Trade and Tourism NAAS National Agricultural Advisory Service NDP National Development Plan NOTIS Notary Information System NPAA National Program for Adoption of the Acquis NPRD National Plan for Regional Development NSI National Statistics Institute NSPPQAC National Service for Plant Protection, Quarantine and Agro-Chemistry NVS National Veterinary Service OECD Organization for Economic Cooperation and Development OIE Office International des Epizooties PAPAU Policy Analysis and Pre-accession
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