Integrated Territorial Investments in

ITI mechanism – instrument for implementation of territorial strategies in an integrated way

Total ITI allocation - MEUR 345,3 ▪ European Regional Development Fund – MEUR 253,3 ▪ Cohesion Fund – MEUR 50 ▪ European Social Fund – MEUR 42 Principles of selection of urban areas:

• Funds are awarded through two operational programmes OPCC and • Urban agglomeration/area (extended urban area around a OPEHR within open/restricted calls or through direct awards for large that is leading the development within the region) financing the projects designated to different priority axes: • Concentrated economic, environmental, climate, demographic Through the OPCC: enabling favourable environment for business and social common characteristics and challenges which affect creation; improvement of the efficiency of the district heating system; urban area revitalisation of cultural heritage; revitalisation of brownfield locations; • Socio-economic potential that can be used through increase of number of passengers in public transport partnership and integration of activities Through the OPEHR: Increase of employment, social inclusion of • Institutional capacity availability vulnerable groups, adult education and modernisation of vocational education Selection criteria: • Sustainable urban development (SUD) strategy • 7 ITI - 4 urban agglomerations: , , and Split and • Proposal of contribution through ITI mechanism for 3 urban areas: , and implementation of SUD • Possible extension to urban area • Established implementation system Advantages and challenges of the ITI mechanism for urban development

ADVANTAGES CHALLENGES AND LESSONS LEARNS • Decentralized approach - delegation of responsibilities to local levels (cities propose projects and perform project • The lack of inclusion of cities, as ITI beneficiaries, in the early evaluation) - taking over responsibilities for the preparation phase of programming of the Partnership Agreement and and implementation of the program; Operational Programmes (2014-2020) • The cities were not timely asked to identify their key social • Dedicated funding – financial support is important challenges and potentials and to start the preparation of large incentive for cooperation; integrated projects so that financing priorities through the ITI • Incentivizing cooperation between local and national level; mechanism could be defined based on them • The lengthy preparation of the tender documentation • Better cooperation on local levels; • The ITI set-up and insufficient implementation capacities • Capacity building on local levels; • The low level of project readiness • The challenge of timely preparation of „major projects “ • Place-based approach focusing on local needs, encouraging • The challenges of resolving the issue of state aid integration of potential on local and regional level; projects between funds or several sectors as well as the • Achieving integrated multi-sectorial knowledge… complementarity of calls financed from different funds. EU post 2020 and National Development Strategy of the Republic of

Croatia 2030 The representatives of New instrument – the cities (large urban Stronger focus on sustainable urban development Investment areas) take active part Platforms for Smart in the programming for cities and Smart new financial • At least 6 % of the ERDF resources at national level islands perspective 2021 – must be allocated to sustainable urban development in 2027 as members of the (joint activity the form of ITI mechanism, CLLD or another territorial Working sub-group for EIB/MRDEUF) smart cities tool under PO5 Requirements: ➢ Integrated territorial development strategies; ➢ Relevant local, urban authorities should be involved in selection of operations – „no need to be intermediate body” Key Intervention area: Smart Governances Development • Possible extension to 7 new urban areas (cities with Smart Economy Smart Mobility direction more than 35.000 inhabitants): Smart Environment 8. Croatia ▪ Karlovac (possibility of roll out in financial Smart People advanced regions perspective 2014-2020) Smart Living (Growth and Jobs ▪ , , , Šibenik, Varaždin for Regions) and Thank you for your attention!

Sanja Rajaković Pedljo, dipl. iur Head of Service for preparation and coordination od Urban Development Programmes Ministry of Regional Development and EU Funds http://www.strukturnifondovi.hr https://efondovi.mrrfeu.hr https://hrvatska2030.hr