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Annual Report on the Implementation

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Annual Report on the Implementation Ministry of Finance Management of the EU Funds Directorate National Focal Point THIRD SEMI - ANNUAL REPORT ON THE IMPLEMENTATION OF EEA FINANCIAL MECHANISM IN THE REPUBLIC OF BULGARIA October 2008 – April 2009 1 GLOSSARY OF ACRONYMS AA Audit Authority AEUFEA Audit of the EU Funds Executive Agency AF Application Form CTE Central Treasury Entity CFCU Central Finance and Contracting Unit EEA European Economic Area EFTA European Free Trade Association EU European Union IA Implementing Agency FM Financial Mechanism FMC Financial Mechanism Committee FMO Financial Mechanism Office MEE Ministry of Economy and Energy MES Ministry of Education and Science MEUFD Management of the EU Funds Directorate MF Ministry of Finance MoU Memorandum of Understanding MC Monitoring Committee NF National Fund NFP National Focal Point NGO Non-governmental organizations TA Technical Assistance 2 PREFACE The purpose of the semi-annual report on the implementation of the EEA Financial mechanism in Bulgaria is to give comprehensive information on the implementation during the period under review. The present semi-annual report covers the period from 1st October 2008 to 30th April 2009. The whole period could be described as a project assessment phase by the FMO team. The present Semi - Annual Report is limited to the following issues: I. Implementation status 1. Assessment of the project applications by the FMO team 2. Changes in the managerial set-up 3. Specific forms of grant assistance II. Publicity and information measures 1. Performed Activities III. Indicative implementation plan for the next period The annual report has been prepared by the Bulgarian National Focal Point for the EEA FM - Management of the EU Funds Directorate, Ministry of Finance. The NFP confirms that the data included in the present Semi - Annual Report on implementation of the EEA Financial Mechanism are comprehensive, complete and correct. 3 I. IMPLEMENTATION STATUS 1. ASSESSMENT OF THE PROJECT APPLICATIONS BY THE FMO TEAM The assessment process of the FMO team was organized in the following phases: - check for administrative compliance and eligibility; - detailed appraisal by the FMO team; - external detailed appraisal carried out by external appraisal agents; - complementary requests for additional information. During the first phase a total of 42 projects have been checked for administrative compliance and eligibility and continued to the detailed appraisal. During the detailed appraisal process the FMO project team submitted 218 requests for additional information. The distribution of the requests per priority areas is as follows: - 48 requests under priority 1 “Protection of the environment”; - 44 requests under priority 2 “Human resources development”; - 67 requests under priority 3 “Health and childcare”; - 59 requests under priority 4 “Conservation of the European cultural heritage”; Appraisal Agent "Swiss Centre for International Health" has been chosen to carry out the external detailed appraisal of the project application in Bulgaria. A total of 46 evaluation reports were submitted to the NFP with the following findings: • No weaknesses were identified within 21 appraisal reports and the respective projects were suggested for funding: - 4 reports under priority 1 “Protection of the environment”; - 3 reports under priority 2 “Human resources development”; - 9 reports under priority 3 “Health and childcare”; - 5 reports under priority 4 “Conservation of the European cultural heritage”; • Within 21 evaluation reports some technical weaknesses were identified. - 4 under priority 1 “Protection of the environment”; - 7 under priority 2 “Human resources development”; - 5 under priority 3 “Health and childcare”; - 5 under priority 4 “Conservation of the European cultural heritage”; 4 • Five evaluation reports came out with negative findings - 2 under priority area “Conservation of European cultural heritage”, 2 under priority area “Protection of the environment” and one under priority area “Human resources development”. On the basis of the findings of the evaluation reports the Financial Mechanism Committee made a negative decision regarding 6 grant applications: - BG 0032 PEERS - Promoting energy efficiency and renewable energy sources in small and medium sized stand - alone buildings in Bulgaria - Foundation "Time Eco-projects; - BG 0044 Restoration and revitalization of ancient Thracian Center Ratziaria - Dimovo Municipality; - BG 0049 Sustainable development of heritage tourism in Zheravna village, Kotel Municipality - Kotel Municipality; - BG 0032 “Spatial Data Infrastructure Project (SDI -project) - Geodesy, Cartography and Cadastre Agency; - BG 0066 Light and new life for the children in Center for disabled children and youth "Kalinka", village Vasil Drumev, Municipality of Shumen; - BG 0062 Introduction of an operative model for providing 5 integrated administrative services to the citizens and business by ICT through the network of 4 municipalities - Asenovgrad Municipality; As a result of the identified risk of involvement of state aid issue the FMO made a recommendation for withdrawal of 2 projects from the main list and 2 from the reserve list from the appraisal procedure. The NFP initiated a written procedure through which a corresponding decision was taken by the EEA FM Monitoring Committee. The withdrawn projects were as follows: - BG0037 Biomass Use - Energy Efficient and Environment Friendly Solution - Rousse University - BG0038 Improvement of Water Quality Control in Bourgas Waste Water Treatment Plant in order to protect the surface waters, Bourgas Lake, Black See in Bourgas area – ViK Burgas; - BG 0059 Reduction of CO2 emissions through production of energy using the water of Iskar river, Bulgaria as a renewable source - WPS Dolna Beshovitsa; - BG0060 Construction of hybrid electric power station for electricity production from renewable resources In accordance with the decision of the EEA FM Monitoring Committee the following projects substituted the withdrawn ones on the main list: - BG0067 “Protected Home Together” village of Gurmazovo, Bojurishte Municipality: Foundation “Protected Home Foundation”; 5 - BG0065 Ancient Sozopol – Saint Ivan Precusor Monastery – Culture through centuries – Sozopol Foundation; - BG0068 Rescue reconstruction and conservation of the buildings of the first class school in Bulgaria “St. st. Cyril and Methodius” and turning it into a cultural- educational centre for youths and tourists – Koprivshtiza Municipality; - BG BG0066 Light and new life for the children in Center for disabled children and youth “Kalinka”, village Vasil Drumev, Shumen Municipality. 2. APPROVED PROJECTS The total amount of € 20 020 800 allocated to Bulgaria under the EEA FM was fully committed within the commitment deadline – 30th April 2009. As a result of the evaluation process held a total of 42 individual projects as well as TA project, NGO Fund and the Scholarship Fund were approved by the Financial Mechanism Committee. Priority area "Protection of the environment" 15 projects (10 main and 5 on the reserve list) were approved at 15 16 national level under priority area 1 14 “Protection of the environment” 12 Proposed for funding (main and reserve list) and proposed for final approval by the 9 10 Committed projects donor states. The FMC made a 8 Rejected projects positive decision for 9 projects at the 6 4 Withdrawn projects total amount of 4 139 509 € grant 4 assistance. 1 2 0 1 Priority area "Human Resorces Development" A total of 12 projects (9 main and 3 on the reserve list) were approved and 12 12 proposed for final approval by the 9 donor states under priority area 2 10 Proposed for funding (main and “Human Resourced Development” 8 reserve list) and. The FMC made a positive Committed projects 6 decision for 9 projects at the total Rejected projects 4 2 amount of 3 129 030 € grant 2 assistance. 0 1 6 Priority area "Health and Childcare" 19 projects (11 main and 8 on the reserve list) were approved on national 19 20 level under priority area 1 “Health 18 and childcare” and proposed for 16 13 final approval by the donor states. The 14 Proposed for funding (main and reserve list) 12 FMC made a positive decision for 13 Committed projects 10 projects at the total amount of 4 579 8 Rejected projects 6 135 € grant assistance. 4 2 0 0 1 Priority area "Conservation of European Cultural Heritage" 19 projects (11 main and 8 on the 15 reserve list) were approved on national 16 level under priority area 4 14 11 12 “Conservation of European Proposed for funding (main and 10 reserve list) Cultural Heritage” and proposed for Committed projects 8 final approval by the donor states. The Rejected projects 6 FMC made a positive decision for 11 4 2 projects at the total amount of 4 975 2 196 € grant assistance. 0 1 By the cut’off date of the reporting period 33 GOL were submitted by the FMO to the NFP and 15 Letters of acceptance signed by the NFP and the project promoters were submitted back to the FMO. During the appraisal process a very good level of cooperation was realised between the NFP and the FMO with constructive attitude on both sides, timely provision of requested feedback prompt reaction in case of identified problematic issues. Fruitful cooperation was also established between the NFP and project promoters that contributed a lot to the timely and proper preparation of any necessary additional documentation, provision of clarification information and fulfilment of all requirements laid down by the donors. 7 3.CHANGES IN THE MANAGERIAL SET-UP OF
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