Ministry of Agriculture and Rural Development PROGRAMME-COMPLEMENT (PC) to the AGRICULTURE AND RURAL DEVELOPMENT OPERATIONAL PROGRAMME (ARDOP) (2004-2006) (Version 24.) Budapest September 2005 TABLE OF CONTENTS I. INTRODUCTION...............................................................................................................4 I.1 PROGRAMME COMPLEMENT .......................................................................4 I.2 THE MANAGING AUTHORITY for ARDOP ..................................................6 I.2.1 General description..........................................................................................6 I.2.2 The MA in Hungary ........................................................................................7 I.2.3 Monitoring.....................................................................................................10 I.2.4 Meeting of The Head of the Managing authority..........................................13 I.2.5 Financial Management and Control Arrangements.......................................14 I.2.6 Monitoring the capacities ..............................................................................17 I.3 THE PAYING AUTHORITY............................................................................18 I.4 THE INTERMEDIATE BODY.........................................................................20 I.5 THE FINAL BENEFICIARIES.........................................................................26 I.6 Consistency with the Rural development plan...................................................26 I.7 The SAPARD Programme .................................................................................30 II. COMMUNICATION PLAN.............................................................................................31 II.1 Background ........................................................................................................31 II.2 Objectives...........................................................................................................31 II.2.1 General Objectives ........................................................................................31 II.2.2 Specific Objectives........................................................................................32 II.3 Target Groups.....................................................................................................32 II.3.1 General target group......................................................................................32 II.3.2 Specific target group .....................................................................................32 II.4 KEY Messages ...................................................................................................33 II.5 CONTENTS OF COMMUNICATION.............................................................34 II.5.1 Basic principles of communication ...............................................................34 II.5.2 Levels of communication ..............................................................................35 II.6 COMMUNICATION ACTION PLAN .............................................................36 II.6.1 Communication phases..................................................................................37 II.6.2 Communication tools ....................................................................................38 II.6.3 Programme closing........................................................................................44 II.7 FUNDING, INDICATIVE BUDGET .........................................................44 II.8 IMPLEMENTATION of communication plan..................................................45 II.9 EVALUATION of communication plan............................................................45 II.9.1 Evaluation for the EU Commission...............................................................46 II.9.2 Indicators used for evaluation .......................................................................46 III. DETAILED DESCRIPTION OF MEASURES.................................................47 III.1 ASSISTANCE TO INVESTMENTS IN AGRICULTURE.................................47 III.2 STRUCTURAL ASSISTANCE IN THE FISHERIES SECTOR .....................66 III.3 SETTING UP OF YOUNG FARMERS............................................................77 III.4 ASSISTANCE TO VOCATIONAL FURTHER TRAINING AND RETRAINING ...................................................................................................84 III.5 IMPROVEMENT OF PROCESSING AND MARKETING OF AGRICULTURAL PRODUCTS.......................................................................92 III.6 EXPANSION OF RURAL INCOME EARNING OPPORTUNITIES...........106 III.7 DEVELOPMENT AND IMPROVEMENT OF INFRASTRUCTURE CONNECTED WITH THE DEVELOPMENT OF AGRICULTURE ...........122 2 III.8 RENOVATION AND DEVELOPMENT OF VILLAGES AND PROTECTION AND CONSERVATION OF RURAL HERITAGE....................................... 133 III.9 LEADER+ ....................................................................................................... 141 III.10 TECHNICAL ASSISTANCE ......................................................................... 153 IV. Evaluation Procedure of the applications ........................................................ 158 V. EX-ANTE EVALUATION............................................................................. 165 VI. Exchange of computer data ............................................................................. 193 VII. FINANCIAL PLAN ........................................................................................ 198 VIII. ATTACHMENTS ........................................................................................... 202 VIII.1 Criteria for an economically viable farm......................................................... 202 VIII.2 Monitoring the capacities, quotas for agricultural products, Capacities for the food industry sector.................................................................................................. 214 VIII.3 Market and development possibilities of highly important sectors (Assessment of market outlets) ................................................................................................. 216 VIII.4 Eligible settlements (in the case of „expansion of rural income earning opportunities” and LEADER+ measures) ....................................................... 226 VIII.5 Handicraft Activities Eligible for Support under ARDOP.............................. 241 VIII.6 Timetable for Implementation of LEADER+ Measure................................... 242 VIII.7 Minimum requirements ................................................................................... 243 VIII.8 The levels of vocational education in Hungary............................................... 276 VIII.9 The method for the selection of advisers and the minimum conditions of their accreditation..................................................................................................... 276 VIII.10 Classification of economic activities............................................................... 277 3 I. INTRODUCTION I.1 PROGRAMME COMPLEMENT The setting-up of the administrative capacities for the efficient management of the Structural Funds and the establishment of suitable institutional structures demand solid expertise and thorough preparation. The most important regulations on the organisational structure are Council Regulation 1260/1999 laying down the general provisions for Structural Funds as well as Commission Regulations 438/2001 and 448/2001 laying down the detailed rules for the implementation of Council Regulation 1260/99 as regards the management and control systems for assistance granted under the Structural Funds. Concerning Article 5 of EC Regulation 438/2001, the coordinator is the National Development Office, the ARDOP Managing Authority has given all the necessary information to that body. In May 2003 the Government of the Hungarian adopted the Community Support Framework (CSF) and, in connection with it, the Agriculture and Rural Development Operational Programme (ARDOP). The European Commission also adopted the Hungarian CSF on the 21 st June 2004 (C(2004) 2093). However, in order to get access to the Structural Funds of the European Union, a Programme Complement (PC) is elaborated, the aim of which is to describe the ARDOP from a more application oriented approach and to establish this way a closer connection between the applicants and the national authorities taking part in the programme. The aim of the Program Complement is to justify the strategy and the planned support with detailed data about the different levels of measures, to describe the measures in detail and to define the concrete support. The Programme Complement describes the details of operation according to the priorities and related measures. For each measure monitoring indicators have been determined, which will be used for the assessment of the efficiency of the project. The Program Complement consists of 7 chapters and the attachments . The first one describes the institutions participating in the management of the measures, stating the exact position they occupy in the process. Based on that, the applicants can become acquainted with the complete process of application. The Communication Plan contains all procedures intended for the information of potential applicants and the general public. Chapter three describes all measures open for application, the terms and conditions