Municipality of BITOLA

Local Consultative Mechanism for IPA2 EuropeAid/138660/ID/ACT/MK

Analytical report: Local level capacities to absorb and programme IPA Funds Case study: Municipality of BITOLA

The Project is financed by the European Union Project: Local Consultative Mechanism for IPA2 National Transition Assistance and Institution Building Programme (TAIB) 2013 - IPA, EuropeAid/138660/ID/ACT/MK

Спроведуван од: NGO Info-centre, Skopje Organization of Women of Strumica.

Analytical report: Local level capacities to absorb and programme IPA Funds

Case study: Municipality of Bitola

Authors: Marjan Stepanovski, analyst Ljupco Petkovski, researcher

Date: May 2018

This document was prepared under the auspices of the “Local Consultative Mechanism for IPA2” Project, supported by EU and implemented by the NGO Info-centre, in partnership with the Organization of Women of Strumica.

The content of this document is sole responsibility of the NGO Info-centre and shall not be understood to represent the views or positions of the European Union.

Reproduction is allowed for non-commercial purposes with attribution of source. Content

Content...... 3 List of Abbreviations...... 4 Project Description...... 5 Introduction...... 6 Methodology and Subject of Analysis ...... 7 Analysis of Situation – Capacity to Use and Programme IPA Funds...... 8

Bitola Municipality and EU Programmes...... 9 Strategic Framework for Local Development: Interventions and Impact ...... 10 Bitola Municipality Cooperation with Other Actors ...... 12 Key Findings...... 15 3 Recommendations...... 16 References and Sources...... 17 List of Annexes...... 18

Annex 1: Questionnaire for interviews/focus group with representatives of the municipal administration ...... 18 Annex 2: Questionnaire for CSOs...... 20

Local level capacities to absorb and programme IPA Funds Analytical report: List of Abbreviations

European Union EU

Instrument for Pre-accession Assistance IPA

Civil Society Organisations CSO

Units of local self-government ULS

Sector of economic development, public activities and information technologies SED

Cross-border cooperation programme CBC

Case study: Municipality of Bitola Local level capacities to absorb and programme IPA Funds Analytical report: Project Description

Programme: National Transition Assistance and Institution Building Programme (TAIB) 2013 - IPA

Project Name: Local Consultative Mechanism for IPA2

Reference No.: EuropeAid/138660/ID/ACT/MK

Contract No.: 12-7455/1

Length: 18 months

Start date: December 19, 2017

End date: June 18, 2019 Government of the Republic Foundation NGO Infocentre Name: Ministry of Finance - CFCD of Macedonia – General Skopje Secretariat Role: User Contracting Party

Contact Person: Elena Simonoska Elena Ristomanov Dragana Kolevska

E-mail: [email protected] [email protected] [email protected] To improve the involvement of local actors in decision-making mechanisms related to the EU Goal: accession process. Increased involvement of municipalities and local civil society organisations from four statistical Objective: regions in programming, monitoring and implementation of IPA2 funds. 1. Analytical reports from the mapping of existing situation and cooperation between municipal administrations and civil society organisations in programming and participation in IPA funding 5 (in municipalities of Bitola, Strumica, Tetovo and the City of Skopje) 2. Study of existing situation, needs and policies of civil society organisations for access to and use of IPA funds. 3. Improved knowledge and increased capacities of municipalities and civil society organisations to Expected results: participate in the programming of IPA funding and apply for European financing. 4. Improved networking of civil society organisations to follow joint advocacy strategies that reflect the local interests and needs. 5. Preparation of action plans in municipalities to provide for permanent mechanisms for consultations among municipalities, improved contributions and participation of municipalities in programming of funding and platform for joint applications for European funds. 1. Identification of local challenges and needs, through consultations, research and analyses. 2. Transfer of knowledge through training for municipal administrations and civil society Activities: organisations. 3. Development of municipal action plans and establishment of local consultation mechanisms. Key stakeholders Local civil society organisations, municipalities: Bitola, Tetovo, Strumica and the City of Skopje

Target groups Civil society organisations, local administration Introduction

his analytical report is a part of a series In addition, while mapping the existing situation of case-studies that aim to map the exist- regarding municipal capacities to apply for and in- ing capacities to use and programme IPA fluence the programming of IPA funds, the research funds at the local level, in the municipali- team conducted an assessment of needs and capaci- Tties of Bitola, Tetovo, Strumica and the City of Skopje. ties of local CSOs. Some of the findings on the CSOs In order to facilitate increased involvement of local from Bitola were included in this analysis, but they actors in decision-making mechanisms related to will be processed in more detail and subjected to the EU accession process, we assess and offer recom- comparative analysis in a separate policy document, mendations for increased involvement of municipal- together with the findings from the three other mu- ities and local civil society organisations from Skopje, nicipalities covered by this project. Polog, Pelagonija and Southeast Planning Region in programming, monitoring and implementation of The four analyses present the current situation IPA2 funds. This analytical report covers the Munici- in the selected municipalities regarding their capac- pality of Bitola. ity to apply for EU funding and, at the same time, to absorb and distribute the funds to serve municipal The drafting of this document, following a meth- and regional interests and priorities. The measures odology applied to all analytical reports, included a and activities that may be implemented with the series of preparatory activities and initial contacts help of IPA funding imply the existence of adequate 6 which were used, in the process of research and planning activities, therefore, this analysis assesses analysis, as basis for more detailed collection of in- the continuous participation and influence of the formation on the situation in Bitola Municipality re- noted actors in the processes of programming of garding the use of EU funding, and cooperation of European funds, in accordance with the key strate- local administration with civil society organisations. gic documents on structured and smart local and The four analytical reports, including this one cover- regional development (both those that are in effect ing the Municipality of Bitola, provide an overview of and those that will be developed in the future). each of the target local communities and were based on a unified methodology for collection and analysis of data and information. The separate case-studies provide specific recommendations tailored to each individual municipality, which will then be used to draw parallels between different local contexts.

Case study: Municipality of Bitola Methodology and Subject of Analysis

he subject of this analytical report is the ministration and local CSOs and an additional online analysis of the model and effectiveness of survey intended for CSOs (open to be completed in participation of Bitola Municipality in EU’s March and April 2018), we mapped and identified the IPA programmes, from the current (2014- context of local development interests and allowed T2020) and previous Financial perspective of EU, and for self-assessment of existing capacities on the lo- the success of cooperation between the municipal cal level. In the preparatory stage, before interviews administration and local CSOs in participation and were conducted, we developed interviewing guide- programming of IPA funds. For the purpose of assess- lines with clear instructions and areas of interest, ment of their capacities, we analysed numerous pri- including interviewing questionnaires (annexed to mary and secondary sources of data and information. this document). The preparation of this analysis relied on a com- We interviewed the head of the department and bined methodological approach of research and advisors for economic development of Bitola Munici- analysis: Questionnaires/online surveys for CSO pality, as well as representatives of the sector for eco- representatives, semi-structured indepth interviews nomic development. In accordance with the unified with the key actors from the municipal administra- methodology, in each of the selected municipalities, tion and the CSOs, analysis of relevant strategic and interviews were conducted with the officials charged referent documents. with the issues of local economic development (LED advisors/specialists), personnel responsible for coop- 7 The analysis of documents1, including prima- eration with CSOs and those responsible for interna- ry and secondary sources of information, initially tional/regional cooperation. focused on the key strategic documents that offer information on performance of municipal adminis- The online questionnaires were developed tration and local CSOs, regarding their participation and shared with Bitola-based CSOs that are on the in programming and implementation of EU/IPA pro- official list of registered and active organisations, grammes. available on the website of Bitola Municipality. Out of a total of 240 registered organizations2 on the With semi-structured indepth interviews territory of Bitola Municipality, 87 CSOs are on the conducted with representatives of the municipal ad- list of active organisations. At the same time, inter- 1 Relevant referent documents: views were conducted with representatives of CSOs Existing strategic frameworks and programmes, planning documents and corresponding action plants, as well from Bitola as key local stakeholders, with the aim as other referent national strategies, including the IPA to confirm the identified challenges and experiences programming documents. of CSOs in the implementation of IPA programmes Available publications and research on experiences and involvement of CSOs in the programming period 2007- and their programming. Those activities mapped the 2013, as well as the available information on the current existing situation, especially the deficiencies that de- programming period, together with published expectations and projections (available from the processes and states of mand additional support and intervention. 13 active programming for the period 2014-2020). CSOs completed the online questionnaire. Information and data on already supported projects under IPA1, as well as signed agreement for implementation of IPA2 projects (that is, the participation of CSOs in 2 Bitola Municipality Strategy for cooperation with the Civil programming of EU programmes). Sector 2012-2015, Municipality of Bitola Local level capacities to absorb and programme IPA Funds Analytical report: Analysis of the Situation – Capacity to Use and Programme IPA Funds

or precise analysis of performance, coop- on experiences of CSO involvement provided addi- eration models and existing capacities tional perspective for the cross-cutting analysis of to absorb IPA funding, we analysed the models of cooperation and involvement of all stake- findings from the field visits and interviews holders. While somewhat limited, some surveys of Fwith key representatives of municipal administra- the civil sector provide an overview of experiences tion and civil society organisations, as well as the for the programming period 2007-2013, as well as data from referent documents. information on expectations for the programming period 2014-2020 (available from IPA2 programming The analysis of documents included a desk-anal- processes and stages). ysis of existing strategic framework and programmes, planning documents and corresponding The capacities for preparation and implementa- action plans, as well as other referent national stra- tion of development projects through the available tegic documents, including the IPA programming foreign assistance are related to the data on projects documentation (with overview of CBC, area in which already financed by EU and other international do- Bitola Municipality has greatest experience of partic- nors implemented by the municipality (as leading ipation). At the same time, for the purpose of assess- implementer or as a partner). Specifically, we noted ment of performance and cooperation models, we the projects already supported under IPA1, as well as took into consideration the annual programmes and signed agreements for implementation of projects 8 reports on the work of Bitola Municipality (for the under IPA2. For general assessment of preparation of period covering the previous and the current Finan- projects for support of local development, we asked cial perspective of EU, that is, the periods 2007-2013 for data on all project proposals submitted for do- and 2014-20203). nor assistance (to EU or other international donors) which weren’t approved for funding. The key strategic documents used to assess and evaluate the existing development framework and We used the interviews to validate the findings programmes, cooperation models and capacities for on the success of implementation of strategic doc- development programing were: The Local Develop- uments (including the effects of the Strategy for ment Strategy (for the period 2014-2018, adopted in Cooperation with CSOs 2012-2015) and capacities for 2014) and the Bitola Municipality Strategy for Coop- allocation of additional funding through the EU’s eration with the Civil Sector (for the period 2012-2015, programmes. At the same time, regarding the mod- prepared and adopted in 2011). els and practices of cooperation between municipal administration and CSOs, we developed key recom- The available publications and research reports mendations for improved joint actions and increased direct participation in the IPA programmes. 3 Bitola Municipality working programmes and reports, starting with the year of submission/implementation of the first project-proposal under the IPA for the programming period 2007-2013. Until 2013, funds programmed by previous EU programmes were used and, as such, they were not taken into consideration by this analysis (The Municipality of Bitola implemented projects under the CARDS Programme until 2010). Case study: Municipality of Bitola Local level capacities to absorb and programme IPA Funds Analytical report:

other hand, offers a more focused thematic approach for development of local economy, employment, labour mobility, social and cultural development, tourism development, promotion of cultural and natural heritage, environmental protection and promotion of alleviation, reduction, prevention and management of climate change risks, as well as promotion of sustainable transportation. Within the three calls announced under CBC Macedonia – Greece, a total of 49 projects were financed to a total value of EUR 9,538,046, just one of them carried by a CSOs as the lead applicant.

The Macedonia – Albania CBC programme, until 2013, focused on promotion of cross-border economic, environmental and social development, with Bitola Municipality emphasis on promotion of tourism, environmental and EU Programmes protection, natural resources and eco-systems, and social cohesion. The focus, in general, remained the s a candidate for EU membership, the Re- same in the next programming period (2014-2020), public of Macedonia, or more specifically, but it was extended to cover improved competition, the Municipality of Bitola and the Pelagonija A business, trade and investments. During the imple- Planning Region have access to cross-border cooper- mentation of that programme, in a total of three ation programmes under IPA14, in the programming calls, 51 projects received support to the total value period 2007-2013, and under IPA25, in the program- of EUR 3,913,921. Of that total, 23 projects were imple- ming period 2014-2020. The main postulate of the mented by CSOs. CBC component of IPA uses, as its starting point, the capacities and efficiency of programming and The level of utilisation of available IPA funding implementation of cross-border programmes. The at Bitola Municipality remains a cause of concern. regions in focus of CBC programmes, through imple- A cross-check of information gathered through in- mentation of projects that address key local prob- terviews, questionnaires and the available data on lems in accordance with the programming focus of concluded and completed agreements to implement CBC, have an opportunity for real improvement and projects under IPA, identified the alarming situation promotion of balanced cross-border development with the existing utilisation of funds through project 9 with activities designed with sustainability in mind6. proposals that fully correspond, from programming The Municipality of Bitola and the Pelagonija Region and essential aspects, to the strategic framework and participate in cross-border cooperation programmes the dedicated EU programmed funds, under the IPA with Greece and Albania. programmes.

The Macedonia – Greece CBC under IPA1 focused So far, Bitola Municipality has implemented just on economic development, tourism and transport 5 IPA projects, all in the programming period 2007- infrastructure and improved environmental protec- 2013. The majority of those projects were within the tion and “people to people” activities. IPA2, on the CBC framework, which was only logical and to be 4 Regulation (EC) 1085/2006 expected having in mind availability of funds and 5 Regulation (EC) 231/2014 set strategic goals and priorities. The referent docu- 6 Numerous analyses of participation and success of ment for implemented projects is the list of projects municipalities and CSOs within IPA1 only confirm the supported by external donors, submitted by the De- challenges faced by municipalities and CSOs as users and active participants in cross-border cooperation. The partment of Economic Development of the Munici- Republic of Macedonia, under the auspices of cross-border pality of Bitola. Under the IPA2 (Financial perspective cooperation programmes (2007-2013), established cooperation 2014-2020), specifically in the cross-border coopera- with Bulgaria, Greece, Albania and Kosovo, and it also participates in the Trans-national programme for cross- tion programme with the Republic of Greece, Bitola border cooperation in Southeast Europe. In addition, in the Municipality made significant progress with three programming period 2014-2020, Macedonia takes part in the Balkan MED programme and should establish cross-border approved project proposals and one project proposal cooperation with Serbia. placed on the reserve list. Case study: Municipality of Bitola

Under the IPA1, in the programing period 2007- 2013, the Municipality of Bitola implemented the following projects: Art and culture beyond walls, CBC with Greece, 2007; Borders without boundaries, Budget of EUR83,550.00, CBC with Albania, Bitola Municipality was the lead partner, 2011; Know How Transfer for District Heating Application in Bitola and Novaci - Telethem; CBC with Greece, budget of EUR267,322.93, Bitola Municipality was the lead partner, 2011-2013; Renovation and reconstruction of the home for elderly Sue Raider, Pavilion 1&2 – Bitola), budget: EUR850,550,00, 2012; BioFoss – Protection of the environment through the promotion of biomass for substitution of fossil fuels in heating and power generation, CBC with Greece, Bitola Municipality was the lead partner; Budget EUR453,913.00, 2015-2016.

Strategic Framework goals of EU’s IPA programmes, which is the main requirement for absorption. However, measures and for Local Development: activities for increased utilisation of external funds Interventions and Impact to serve local development, defined by the strategic document, are not treated as priorities and are not he key strategic document of the Municipality implemented fully. of Bitola is the Strategy for Local Development T2014-2018. The document provides the devel- One of the key goals of the priority area Eco- opment framework and identifies four priority areas nomic development is focused on “development of (economic development, development of tourism, mutual cooperation of municipalities, regions and welfare and environmental protection), with corre- cross-border cooperation”, through promotion of sponding priority goals7, as key segments for inter- mutual cooperation of municipalities in the Pel- vention with greatest potential for development and agonija region and improved utilisation of EU’s 10 opportunities for improvement of situation on the pre-accession assistance. It plans activities aimed to local level. improve the cooperation of municipalities in promotion of economic development in the region and The analysis of the Strategy and its implemen- create conditions for increased and efficient prepa- tation indicates that, in spite of having a well-de- ration of regional cross-border cooperation projects. fined plan for smart and inclusive growth and de- The planned activities stimulate a wide scope of co- velopment of the municipality, it is implemented operation between the USG, CSOs and the relevant only partially. The strategic goals are in line with the local institutions, but without financial implications for the municipal budget. The success indicators for 7 The Municipal Strategy for Local Development of Bitola (2014- 2018) placed its focus on nine strategic goals, which were then the prepared regional level cross-border cooperation elaborated further in corresponding activities: projects, measurable from the point of view of num- Improved socio-economic situation of the population; ber of prepared, applied and approved projects (with- Improved public and private infrastructure systems that contribute to development of the municipality; out any financial implications), indicate an alarming Development of mutual cooperation of municipalities, discrepancy between the political will, in the period regions and cross-border cooperation; Creation of a system of management of tourism in the of preparation of the Strategy, and preparedness to Municipality of Bitola; fund-raise, in the period of implementation of the Bitola – recognized tourist destination; Strategy which coincides with IPA1 calls for propos- Equal opportunities, social inclusion and zero discrimination; als, that is, the Financial perspective 2007-2013. Improved quality of all environmental media; Sustainable development of systems of environmental The Strategy also regulates the organisational protection; set-up as precondition for increased absorption of Organization and operation of department for preparation and implementation of projects in the Municipality of Bitola IPA funds. The Strategy points out that the process of Local level capacities to absorb and programme IPA Funds Analytical report:

setting-up a sustainable development system for the Municipality of Bitola will require the organisation of a project department for preparation and implementation of projects. However, the budget doesn’t provide funds for realisation of that important ac- tivity.

Therefore, the past weak performance of Bitola Municipality in EU’s IPA programmes is hardly sur- prising. One advantage is that SED, in spite of its limited staff (the existing systemisation of jobs and positions lists 19 positions at SED), has the indisput- able expertise and experience that need to be put in service of effective and efficient local economic development.

The capacity to prepare and implement develop- The SED officials, who are the key actors of implement projects was analysed from the viewpoint of mentation of IPA projects, noted as most important already implemented projects, financially supported benefits for the Municipality the access to finances by the EU and other international donors. It took and the support for innovative initiatives. Another into account the projects that the Municipality im- noted possible benefit from the participation in IPA plements, as either lead or partner, under the IPA1 programmes for the Municipality is the support for framework, as well as the signed agreements for im- public-private partnerships, that is, the support for plementation of IPA2 projects. For overall evaluation new models of cooperation with the local businesses of preparation of projects to support local develop- in order to promote local development. ment, we sought information on all submitted project proposals that were not approved for support. Regarding available capacities and their expertise The Municipality responded that it didn’t have that to work on projects financed by EU programmes, the information, that is, no records are kept of all sub- SED and the other sectors need specialized training mitted project-proposals. to acquire additional skills. The past success stories are related mainly to the cooperation with exter- The interviews and the analysis of questionnaires nal consultants in preparation of project proposals. confirmed the practices of ad hoc decisions for prior- Therefore, a priority need emerges to upgrade exist- 11 itisation of certain project proposals, unsynchronised ing capacities and skills of municipal staff, especially with the strategic directions and existing develop- if the aim is to be more successful in attraction and ment framework of the Municipality. In addition, the implementation of more substantial IPA projects. findings indicate a series of shortcomings of inter- The lack of expertise of the employees is tied to their nal procedures for monitoring and record-keeping limited experience in project management, project of submitted project-proposals (in the period from financial operations and procurement practices in 2007 to this date). Although there is no official record accordance with PRAG standards8. that would help quantify the success of the SED in preparation of project-proposals for the Municipality Past limited participation of Bitola Municipality of Bitola, the SED and the Department of economic in IPA programmes was due mainly to the lack of development have insight into the submitted appli- political will for the Municipality to take direct par- cations and information on their status (within the ticipation, either as lead or a partner in project im- electronic data-bases and platforms for submission plementation. It should be noted that, at this time, of project-proposals). With the already established there exists political will in Bitola Municipality to im- practice of ad hoc monitoring of progress, there is prove the situation and that political will may have a need for procedures for continuous monitoring significant influence on building of capacities and and records of official statistics of success, presented use of EU funding for accelerated local development. per programme and per call (specifically for donors’ funds), and compared with the strategic priorities of 8 PRAG - Practical Guide to Contract Procedures for EU External the Municipality. Actions Case study: Municipality of Bitola

Bitola Municipality Cooperation with Other Actors lthough the Municipality of Bitola has estab- Civil Sector in Bitola: lished initial cooperation with all embassies Prospects and Challenges Aand consular offices in the Republic of Mac- edonia and other international organisations pres- Bitola Municipality doesn’t have a strategy for ent in the country, there remains a need for im- cooperation with civil society organisations and has provement of its networking practices. At the same not, to date, announced any activities for creation of time, the long experience of cooperation with its a new strategic framework for improved cooperation sister-cities may be further used to create partner- between the municipal administration and the civil ships and exchange good practices under some EU sector. The last Strategy for Cooperation with CSOs of programmes. the Municipality of Bitola covered the period 2012- 2015 and listed as its main goal “to strengthen and The creation of a professional projects depart- advance cooperation with the civil sector and con- ment within the municipal administration, charged tribute to creation of stimulating environment for with cooperation with all local stakeholders (CSOs, civic participation in creation of local policies and business community), could contribute significantly development of the local community in general”9. to improved cooperation and absorption of donors’ funds intended for strategic local development. The At this time, there is no systemized approach and department would work in co-ordination with all cooperation between the municipal administration sectors in the municipal administration and with and civil society organisations, and the municipal the Centre for Development of the Pelagonija Plan- administration has not appointed a contact per- ning Region, especially in definition of priorities and son for citizen activists. The cooperation is reduced preparation of development project-proposals. All of to ad hoc activities and an annual programme for the above would result in enhanced and improved financing of local CSOs with a total budget of just cross-border cooperation. In addition, the adoption 2mn MKD. The programming of allocated funds, i.e., of new systemisation of jobs and position of Bito- their inadequacy compared to the key local strategic la Municipality would allow for realisation of other priorities, and the absence of proper evaluation and measures and activities prescribed in the strategic monitoring models for submitted projects remain a documents. cause of concern. The practice to level all projects in 12 line with “equal distribution to all” principle, without As far as potential for future development part- analysis of effects of implemented activities and how nerships is concerned, the municipal administration they correlate with strategic development goals and is convinced that CSOs may be the most useful part- priorities doesn’t contribute to the sustainability or ners in preparation and implementation of projects development of the civil sector, nor it contributes to in the framework of EU programmes. Past practic- the development of municipality. es indicate that it is civil society organisations that mostly approach the Municipality with proposals for As far as the civil sector is concerned, over the partnerships related to specific and concrete donor past several years, there is notable negative trend calls for proposals and projects. The Municipality of civic activities in the municipality. The number usually gave positive response to such proposals, but of “professional” CSOs is small, compared to those that communication and cooperation needs to be- that get active on ad hoc basis and have no contin- come more intensive and better channelled in both uous activities or, in fact, offices or permanent staff. directions, that is, grow from ad hoc initiatives into In other words, the civil sector in Bitola is not suffi- well planned and coordinated strategic cooperation. ciently active at the moment and has limited capac- That will allow the municipal administration and ity to create sustainable and inclusive projects that CSOs to cooperate on implementation of projects may influence the development of the local commu- and increase the chances for utilisation of IPA funds nity and the existing development prospects of the and other donors’ funds and programmes dedicated city, the municipality and the region. to local development. 9 Strategy for Cooperation with CSOs of the Municipality of Bitola 2012-2015 Local level capacities to absorb and programme IPA Funds Analytical report:

The key challenges faced by the civil society or- Graph 1: ganisations in Bitola are related to the limited finan- Overview of CSOs that employ permanent staff, service cial sustainability opportunities and the lack of hu- contract workers and volunteers man resources for their further development. Those challenges were duly noted in the Strategy 2012-2015, Up to 5,000 but in reality, no progress has been noted and, fur- From 5,000 to thermore, we found that the number of active CSOs 20,000 is dropping. From 20,000 to 50,000 Of the 13 CSOs that completed our online ques- 50,001 to tionnaire, with an exception of one organisation 100,000 which can be categorized as active and sustainable From 100,001 to (it has more than five employees and continuity in 500,000 implementation of IPA projects), the other organi- Over 500,000 sations have no permanent staff and don’t imple- I do not know / no 13 ment IPA projects. Almost 60% of them implement answer all their activities using people hired on service contracts and volunteers. Graph 2: The negative trend of civic activities is evident in Average annual budgets of Bitola-based CSOs the amounts of average annual budgets of the organisations. Over 60% of active CSOs in Bitola that completed our online questionnaire reported annual budgets of up to EUR5,000, and the same share of CSOs never submitted a project proposal for funding Yes from EU’s IPA programmes.

Almost 90% of the CSOs that completed the online questionnaire never cooperated on a project No with the municipal administration, that is, they implemented their activities in partnership with other organisations.

Graph 3: Break-down of CSOs’ cooperation with Bitola Municipality on implementation of IPA programmes Case study: Municipality of Bitola

Regarding the potential for cooperation between civil society organisations and Bitola Municipality, the activists are unison that partnership is necessary and needs to be built further. An opinion prevails in the municipal administration that, so far, there is no express will to cooperate with the civil sector so the administration advocates preparation of a new Strategy that will prescribe measures and activities for improvement of the mutual cooperation.

The activists believe that the local administration and the CSOs should join forces to cooperate in preparation of project proposals that would apply for funding under the IPA programme. That partnership will be beneficial to both sides. For the CSOS it would mean, among other things, that the local administration will provide money to cover the co-financing requirements.

More than a half of the CSOs that completed the online questionnaire can’t secure co-financing, which is why they don’t apply to the IPA calls for proposals, while the other half can provide only some of the required co-financing. For that reason, over 60% of CSOs indicate that the Municipality may emerge as possible source of co-financing.

Organizations of the same type

Municipalities / Public 14 enterprises Public institutions (at the national / regional level)

Business sector

Chambers of commerce

Banks

Other financial institutions

Other partners

Do not know / No answer

Graph 4: Potential sources of co-financing, according to the CSOs Key Findings

he main characteristic of the general as- At the moment, there is no systemic approach and sessment of performance of Bitola Munic- cooperation between the local administration and ipality’s capacities to use and programme the CSOs, and no person for communication with IPA funds to serve local development civic activists has been appointed. The cooperation Tpriorities is the low level of utilisation of available has been reduced to ad hoc activities and an annual funds. That is due to the passive and strategically un- programme for financing of local CSOs with a total focused approach. budget of just MKD 2 million.

Although the strategic framework of Bitola Mu- Activists unanimously agree that partnership is nicipality fully corresponds to the programming pri- necessary and should be constantly built and up- orities of IPA programmes, it is the absence of po- graded. There is the prevailing opinion among them litical will of the municipal administration to take that, for the time being, the Municipality lacks the direct participation in IPA project that is noted as the will to cooperate with the civil sector, therefore, they key factor for the past limited participation. advocate the preparation of a new Strategy to prescribe measures and activities to improve the coop- Also, the lack of continuity of the strategic di- eration. rection to build the necessary capacities makes the unfavourable position in terms of utilisation of the The activists believe that the Municipality and limited human resources and experience, which the CSOs need to work together in preparation and 15 have serious effect on the absorption of EU funds, application of projects for IPA funding. That partner- much harder. ship would be mutually beneficial. For the CSOs, it would mean, among other things, that the Munici- Existing models of cooperation with the local pality would secure the necessary co-financing. stakeholders have not yielded any significant results. The promotion of benefits from Bitola’s participation The key challenges faced by the civil society or- in EU’s IPA programmes through which a series of ganisations in Bitola are related to the limited finan- strategic development initiatives could be imple- cial sustainability opportunities and the lack of hu- mented together with public enterprises, CSOs and man resources for their further development. the business sector, has been stagnating.

We should note the fact that, at this time, there is political will in the municipal administration to improve the situation. One advantage is that, in spite of limited staff, the expertise and experience that need to be put in service of effective and efficient local economic development are indisputably there.

The Municipality notes that CSOs may prove to be the most useful partners in the preparation and implementation of projects under EU’s programmes.

Local level capacities to absorb and programme IPA Funds Analytical report: Recommendations

he existing political will in the local ad- ities and adequate preparation and implementation ministration in Bitola needs to be trans- of projects. formed into concrete measures and activities that would lead to increased utilisa- In order to be able to improve the cooperation Ttion of funds offered by the European Union. with the CSOs, the Municipality needs to establish a two-way dialogue with the civil sector and appoint The Municipality needs to create and implement a person for communication with civic activists. It continuous and systemic promotion of benefits from also needs to prepare a strategy for cooperation and participation in EU’s IPA programmes, both for the support for CSOs. The preparation and the imple- municipality and for the public enterprises, CSOs, mentation of the strategy need to be inclusive with the business sector and the citizens in general. direct and continuous participation of civil society organisations. The access to IPA funds implies undertaking of a series of preparatory steps, integrated into coherent The Municipality needs to stimulate partnerships development frameworks that will precisely identify with CSOs under the auspices of the IPA programmes the needs for upgrading of existing capacities. For and to support the sustainability of the civil sector. that purpose, the Municipality of Bitola needs to The Municipality needs to develop models for in- work continuously to build and upgrade the capac- volvement of CSOs in the implementation of local 16 ities of the municipal administration. At this time, development measures. the priority areas for upgrading are: Informing the municipal administration with the details of EU’s The existing Programme for support for CSOs programmes and funds; project management and needs to incorporate a clearly defined system for implementation of IPA project; introduction to and selection, monitoring and evaluation and supported application of PRAG procurement procedures; finan- projects need to correspond to the strategic priori- cial management; communication and promotion of ties of the Municipality. project results; public advocacy and creation of evi- dence-based policies; etc.

Capacities for utilisation and programing of IPA funds on local level need to be properly systemized in service of strategic development priorities of the Municipality. Therefore, an efficient internal system needs to be put in place, together with proper organisational set-up, adequate human resources and mandate to follow, monitor and upgrade that system. In fact, the Municipality of Bitola needs to establish a sustainable development system, with a project department that would map the local prior-

Case study: Municipality of Bitola References and Sources

Documents

Strategy for Local Development of Municipality of Bitola 2014-2018, Municipality of Bitola, 2014

Strategy for Cooperation of Municipality of Bitola with Civil Society 2012-2015, Municipality of Bitola, 2011

Macedonia - Albania IPA CBC programme 2007-2013

Macedonia - Greece IPA CBC programme 2007-2013

Macedonia - Albania IPA CBC programme 2014-2020

Macedonia - Greece IPA CBC programme 2014-2020

Multicountry indicative strategy paper (2014-2020)

Cross-border cooperation: European priority and political objective of the EU

Analysis of CSOs involvement in Cross-border cooperation programmes, Summary of the draft report for conference participants 17 Websites

Official website of the Central Database on foreign assistance of the Government of the Republic of Macedonia http://cdad.sep.gov.mk/

Official website of the Municipality of Bitola http://bitola.gov.mk/

Official website of the Ministry of Local Self-Government http://mls.gov.mk/

Local level capacities to absorb and programme IPA Funds Analytical report: List of Annexes

Annex 1: Questionnaire for interviews/focus group with representatives of the municipal administration 1. List EU’s Programmes in which you have participated (used them) as a municipality (in the period from 2007 to this day)?

2. Number of submitted project proposals (in the period from 2007 to this day)?

3. Number of implemented projects (in the period from 2007 to this day)?

4. Which are the main benefits from the participation of municipalities in EU programmes? Development of partnerships in different sectors, focus and levels Working with partners (national and foreign) and exchange of knowledge and experience 18 Financial benefits and financing of innovative initiatives Support for public-private partnerships (new models of cooperation with the local businesses) 5. How would you assess the expertise of the employees that work on projects financed by EU programmes? Fully trained Additional training is needed Minor abilities/abilities on level of basic information Insufficient ability and experience Have no information/No answer 6. Where do you locate the deficit of expert abilities of the employees? Experience Project management Knowledge of foreign languages Formal education Additional training

Case study: Municipality of Bitola Local level capacities to absorb and programme IPA Funds Analytical report:

7. In your opinion, to what extent the internal capacities and experience influence the absorption of EU funds? Fully influences the absorption of EU funds Has great influence on the absorption of EU funds Has no influence on the absorption of EU funds Has little influence on the absorption of EU funds 8. In your opinion, how could the Municipality increase its participation in EU programmes? Trainings, workshops, seminars, etc. Enhanced activities of national support bodies Increased promotion of the programmes and the benefits they bring Improved inter-sectoral cooperation in preparation of project proposals that respond to real local needs Adequate planning and correlation of local and national strategies with EU’s Financial perspectives/ programmes 9. Which of the listed potential/existing partners you find most useful for preparation and implementation of project under EU programmes? Public institutions/enterprises Business sector Civil society organisations/foundations

19 Case study: Municipality of Bitola

Annex 2: Questionnaire for CSOs 1. In which municipality is your organisation registered? Strumica Skopje Tetovo Bitola 2. In general terms, what is the programming focus, that is, the geographic level of operation of your organisation? Which of the options listed below best reflects your work? Local (city, municipality) Regional (within the planning region) National (Macedonia) International (SEE/international) Other, please note 3. What is the area of operation (sectoral focus) of your organisation? Please choose from the list below (you may select up to two answers) Decentralisation Social policies and employment Democracy Rule of law and fundamental rights Culture Media Youth and youth policies Agriculture and rural development Sustainable and economic development Tourism Sport 20 Education Services (for the private/public sector) Other, please note 4. How many persons are employed by your organisation at the moment? We have no employees, just persons engaged on service contracts We have no employees or persons engaged on service contracts, we work on voluntary basis 1 2 3 4 5 More than 5 Local level capacities to absorb and programme IPA Funds Analytical report:

5. What is your average annual budget for the past five years (in EUR)? Up to 5,000 From 5,000 to 20,000 From 20,000 to 50,000 50.001 Up to 100,000 From 100,001 to 500,000 More than 500,000 I don’t know/no answer 6. Has your organisation ever submitted a project application for financing from IPA funds, either as lead organisation or partner? Yes, only as lead applicant Yes, only as a partner Yes, we have submitted applications both as lead applicants and as partners No, we have never submitted application for IPA funding 7. In your opinion, which are the main benefits from the participation of your organisation in EU’s IPA programmes? (you may select more than one answer) Financial benefits Access to funds for projects for which no national financing is available Financing of innovative initiatives which wouldn’t exist without EU support Development of new partnerships through multiple sectors and levels Working with and learning from partners/similar organisations from other countries Sense of belonging to Europe Don’t know/no answer 8. Which of the listed general terms/factors would contribute to greater utilisation of EU’s IPA funds? (you may select more than one answer) Information about project opportunities from EU sources More active support for lead institutions (ministries, contact points, municipalities, etc.) 21 Development and promotion of a culture of public-private partnerships (Greater) accessibility of external sources of co-financing Improved information and education about EU’s development goals Don’t know/No answer 9. List the key challenges that influence the success of preparation of project proposals for IPA programmes? (you may select more than one answer) Applications are in English Complex and time-consuming application procedures Inadequate criteria for evaluation of project applications Insufficiently transparent process of evaluation of project applications Lack of adequate partners (for joint application and implementation of projects) Problems with ownership of projects Huge competition for limited funding High percentage of co-financing needed Complex and inflexible procedures for monitoring, reporting and evaluation of projects Case study: Municipality of Bitola

10. Do you implement/have you ever implemented project financed by IPA funds? Yes No 11. How many IPA projects have you implemented? (including ongoing projects, if any) 12. Did you implement the project(s) as … Lead applicant only Partner organisation only We have implemented projects in both capacities 13. You have implemented a project in partnership with which of the following entities? (you may select more than one answer) Units of local self-government (municipalities) NGOs Centres for regional development Public enterprises Private sector Other, please note 14. Projects you implement/have implemented were covered by which IPA programme? IPA Cross Border Programme IPA Operational Programme for Human Resources Development IPA Civil Society Facility IPA II Other programme, please explain… 15. Does your organisation have employees responsible for preparation and implementation of project- proposals under EU’s IPA programmes? Yes No 22 Other model, please explain 16. How many employees in your organisation are responsible and trained to prepare and implement project proposals under the EU’s IPA Programmes? 0 1 2 3 4 5 More than 5 17. How would you assess the expertise of employees responsible for preparation and implementation of IPA projects? Fully trained They need some additional education and training Their knowledge is on the level of basic information about the project, training and abilities are insufficient Insufficient experience Local level capacities to absorb and programme IPA Funds Analytical report:

No experience Don’t know/no answer Other, please explain 18. If you find your employees to be insufficiently trained, where do you locate that lack of expertise and training? (you may select more than one answer) Knowledge of foreign languages/English language Education and training Knowledge about the subject of project management Experience Don’t know/No answer Other, please explain 19. In your opinion, who shall be responsible for building of capacities of your organisation’s staff to prepare and implement EU projects? (you may select more than one answer) Your organisation Public institutions (Government)/institutions responsible for EU integrations Public institutions (Government) and your organisation Public institutions (Government), your organisation and other partners Employees who work (will work) in that area Don’t know/no answer Other, please explain 20. If no employee works on preparation of projects, would your institution: Train some of the existing staff Seek services from an external consultant(s) Employ a qualified person(s) Don’t know/No answer Other, please explain 21. One requirement for use of funds from EU’s IPA programmes is for users to provide a share of co- 23 financing. How would you estimate the financial condition of your organisation? We can provide the full co-financing on our own We can provide only a fragment of the necessary co-financing We can’t provide any co-financing Don’t know/No answer 22. How would you evaluate the access to sources of co-financing for IPA projects? There are sufficient external sources of co-financing There are too few external sources of co-financing There are no external sources of co-financing Don’t know/No answer 23. Which (potential) partners you can count on for the co-financing of projects of your organisation? (you may select more than one answer) Organisations that work in the same field and area of interest Municipalities/ULS/Public enterprises Public institutions (on national/regional level) Business sector Case study: Municipality of Bitola

Chambers of commerce Banks Other financial institutions Other partners Don’t know/No answer 24. Which of the activities listed below may help overcome the obstacles to greater use of EU’s IPA funds? (you may select more than one answer) Training, workshops, seminars, etc. Simplified rules by EU’s IPA programmes Activities of national support bodies (assistance to find funding opportunities, finding partners and preparation of applications) Activities to promote the Programmes (more publications, info-days) Creation of special funds for co-financing of EU projects Access to adequate sources of co-financing (banks, other financial institutions, etc. ) Simplified procedures for administration and financial management of projects Simplified procedures for application, reporting and auditing of projects 25. Have you cooperated with ULS/Centre for regional development/Public enterprise in preparation or implementation of IPA project? Yes No If yes, please note which Municipality/Centre for regional development/Public enterprise was involved 26. Have you ever been involved (as a CSO or as representative of the civil sector) in processes of programming of IPA programme or other EU programme? Yes No 24 If Yes, please note in which form – consultation meetings/processes, as contributor, etc. 27. In your opinion, how could your organisation’s participation in IPA programmes be increased? 28. Please list what types of trainings would your find useful to increase the capacities of your organisation for greater absorption of IPA funds? 29. Do you have some proposal to stimulate and promote cooperation between CSOs, municipalities and other actors to facilitate cooperation regarding IPA programmes?