European Funds for Croatian Projects

EUROPEAN FUNDS FOR CROATIAN PROJECTS

This publication has been produced with the assistance of the European Union, PHARE 2005-0707-010101, Capacity Building and Project Preparation Facility in Croatia

The present Handbook provides an overview of the EU financial instruments available to Croatia.

THE HANDBOOK: • Presents the pre-accession instruments, • Contains an overview of European Community Programmes, • Presents the Structural and Cohesion Funds, European funds for Rural Development and Fisheries, • Explains the different types of management of EU financial instruments and procurement procedures for awarding grants and public contracts, • Describes “step by step” transformation of an idea into the project proposal using logical framework approach and other project cycle management tools, • Guides on how to develop successfully a European project and provides tips for project management, monitoring and evaluation.

ISBN 978-953-7443-09-2

Central Office for Development Strategy and Coordination of EU Funds EUROPEAN FUNDS FOR CROATIAN PROJECTS

Radnička cesta 80/V 10000 Zagreb, Croatia A HANDBOOK ON FINANCIAL COOPERATION AND EUROPEAN UNION Tel.: (385 1) 4569 179 SUPPORTED PROGRAMMES IN CROATIA Fax: ( 385 1) 4569 150 This publication has been E-mail: [email protected] produced with the assistance http://www.strategija.hr of the European Union EUROPEAN FUNDS FOR CROATIAN PROJECTS

A Handbook on Financial Cooperation and European Union Supported Programmes in Croatia This publication has been produced with the assistance of the European Union PHARE 2005-0707-010101, Capacity Building and Project Preparation Facility in Croatia

The overall objective of PHARE 2005-0707-010101, Capacity Building and Project Preparation Facility in Croatia has been to improve planning, programming and implementation of the Instrument for Pre - accession Assistance (IPA) funds in Croatia and to accelerate the implementation of the acquis communautaire. The Central State Ofﬁ ce for Development Strategy and Coordination of EU Funds has been the main beneﬁ ciary of the project. The project has been implemented through three interrelated components:

□ Under Component I, the main focus of the activities has been the drafting and publication of this Handbook, which will serve as a major reference for all those involved or interested in the EU accession process, containing relevant information sources and internet addresses; □ Component II has been focused on capacity building assistance and provision of help-desk services for a broad group of beneﬁ ciaries in two main areas: programming of IPA 2008 and procurement. □ Component III has been focused on training. The training activities were also divided along the lines of programming, project development and management, on the one hand, and procurement issues, on the other.

Capacity Building and Project Preparation Facility in Croatia has been implemented by metis GmbH in association with GTZ GmbH. The duration of the project has been 13 months, January 2008 – February 2009.

Disclaimer:

This publication is intended as an additional aid to provide general information on ﬁ nancial cooperation and EC supported programmes in Croatia.

The information contained does not replace or amend any ofﬁ cial contract, agreement, document or report.

The contents of this publication are the sole responsibility of the authors and can in no way be taken to reﬂ ect the views of the European Union.

Unless speciﬁ cally stated otherwise, reproduction for personal use (i.e. for educational purposes, research, private study or internet circulation within an organization) or for further non-commercial dissemination to end users is authorized subject to the condition that appropriate acknowledgement be given to the Central Ofﬁ ce for Development Strategy and Coordination of EU Funds and to the source. EUROPEAN FUNDS FOR CROATIAN PROJECTS

A Handbook on Financial Cooperation and European Union Supported Programmes in Croatia

Zagreb, 2009 Authors: Slađana Novota, Ivana Vlašić, Rumiana Velinova, Kiril Geratliev, Olga Borissova

Editorial Board: Hrvoje Dolenec State Secretary, Central Offi ce for Development Strategy and Coordination of EU Funds Zvonimir Savić Deputy State Secretary, Central Offi ce for Development Strategy and Coordination of EU Funds Tomislav Belovari Central Offi ce for Development Strategy and Coordination of EU Funds Iva Frkić Central Offi ce for Development Strategy and Coordination of EU Funds Nikša Tkalec Central Offi ce for Development Strategy and Coordination of EU Funds Borislav Bogunović Central Finance and Contracting Agency Maja Čakarun Central Finance and Contracting Agency Tatjana Čorlija Ministry of Foreign Affairs and European Integration Ivana Buršić Ministry of Foreign Affairs and European Integration Suzana Grizelj Central State Offi ce for Administration

A CIP catalogue record for this book is available from the National and University Library in Zagreb under 684336

ISBN 978-953-7443-09-2

Central Ofﬁ ce for Development Strategy and Coordination of EU Funds

Radnička cesta 80/V 10000 Zagreb, Croatia Tel.: (+ 385 1) 4569 179 Fax: ( + 385 1) 4569 150 E-mail: [email protected] https://www.strategija.hr Foreword by CODEF 7 Foreword by CFCA 9 Chapter I. Financial Cooperation between European Union and Croatia – 11 OBNOVA, CARDS, PHARE, ISPA and SAPARD Chapter II. IPA – the new pre-accession fi nancial instrument 39 Chapter III. Community Programmes in Croatia 77 Chapter IV. EU funding opportunities for Croatia after accession 113 Chapter V. How to benefi t from the EU assistance 141 Chapter VI. How to develop a project proposal 157 Chapter VII. How to manage a project successfully 185 Annex 1. About CODEF 197 Annex 2. List of tables, fi gures and maps 198 Annex 3. List of abbreviations 200 Annex 4. References, further reading and useful links 202 Annex 5. Glossary of Terms 206

FOREWORD BY CODEF

Dear Reader, YouY have in your hands the ﬁ rst edition of the Handbook “European Funds for Croatian Projects”,P which presents ﬁ nancial cooperation and European Union supported programmesp in Croatia. This publication has been produced with the assistance of thet European Union and aims to give you an understanding and insight into the way EuropeanE funds are allocated and planned, how these funds operate and how they couldc support your idea, your project, your community or organisation.

TheT Central Offi ce for Development Strategy and Coordination of EU Funds (CODEF) isis in charge of the coordination of EU funds for Croatia, and the generation of a nationaln development strategy. It is the lead institution in the Republic of Croatia forfof EU funds programming and monitoring. It is also a key interlocutor between the CroatianC Government and the European Commission, together with the National AuthorisingA Offi cer and the National Fund within the Ministry of Finance for the fi nancial managementm of EU funds. While the Ministry of Finance has to ensure that EU funds area spent correctly and in a fi nancially sound manner, CODEF’s broader mandate is to monitor that EU funds are spent effectively; that Croatia has the programmes and projects in place to ensure absorption, and makes the best use of EU and national resources.

For several decades now the European Union has been one of the principal actors in international co-operation and the biggest donor of development assistance in the world. In order to support its external assistance policy the EU has developed a wide range of fi nancial instruments, which most people call EU assistance programmes or European funds. Some of these instruments have been tailored to the specifi c development priorities of the benefi ciary states. Others have been designed ad hoc to target the immediate needs of partner countries and regions.

In Croatia this process of ﬁ nancial support started with independence of the country. At each stage the European Union tailored its support to the needs of the country. Now, the European Union renders pre-accession assistance to Croatia to support political, economic and institutional reforms, cross-border cooperation, regional competitiveness, regional development, development of human resources, and support for agriculture and ﬁ sheries. In this way the European Union helps Croatia meet European standards and prepares the institutions, administrations, businesses, and civil society for membership.

The Handbook also presents the ﬁ nancial opportunities that currently exist for Croatia and which will open up further in the future, once the country becomes a Member State of the European Union. In this Handbook you will ﬁ nd: ● What are pre-accession instruments and how they can be used; ● An overview of European Community Programmes, which are an additional opportunity for financing in relation to different European policies; ● What are Structural and Cohesion Funds, European funds for Rural Development and Fisheries, and how they will operate for Croatia; ● An explanation of the different types of procurement procedures for the awarding of grants and public contracts under European funds; ● Recommendations on how, “step by step”, to transform an idea into a project proposal using a logical framework approach and other project cycle management tools, ● Guidance on how to successfully develop a European project and tips for project management, monitoring and evaluation.

We do believe that this Handbook will be useful reading for you and will help you discover how the European Union can further contribute, through its ﬁ nancial instruments, to the positive change in your community, organisation, town and county.

Hrvoje Dolenec

State Secretary Central Ofﬁ ce for Development Strategy and Coordination of EU Funds

FOREWORD BY CFCA

Dear Reader,

We are presenting you the Handbook “European Funds for Croatian Projects”, the fi rst of this kind in Croatia, which will give transparent and understandable explanation on the EU fi nancial assistance and its benefi ciaries, available within the scope of CARDS, PHARE, ISPA, SAPARD, IPA and Community Programmes. When listening and reading about the EU funds, there is the impression that there is a lack of understanding of the entire programme as well as the direct benefi ts from the projects fi nanced by the EU funds.

Therefore this Handbook will give clear and concrete examples of how to use the EU taxpayers' money and its powerful inﬂ uence on our whole community and everyday life of each citizen of the Republic of Croatia.

The projects ﬁ nanced from the EU funds are primarily related to institutional building, adoption of acquis communautaire, large infrastructural investments, etc. Nevertheless, we must not forget low budget projects, which sometimes remain unnoticed, related to different NGO projects focused on civil society building.

The Central Finance and Contracting Agency performs the role of the Implementing Agency in the Decentralised Implementation System. In that sense, CFCA is responsible for overall management of EU pre-accession funds, i.e. tendering and contracting of projects. The Agency is also responsible for payments and reporting on procurement process, ﬁ nancing and ensuring the successful project implementation, in accordance with contract provisions and initial project objectives, as well as in accordance with the EU rules and procedures.

The Republic of Croatia has been allocated the total amount of EUR 289.80 million within the CARDS, PHARE, ISPA and SAPARD programme, from which EUR 217.8 million has been contracted until today. Contracting rates of the aforementioned programmes are between 85% and 95%. These good results conﬁ rm that methods and goals used by the CFCA were correct and with a good strategic focus.

I would like to emphasise that decentralised projects from CARDS 2003 and 2004, as well as all projects from PHARE and ISPA programme mentioned in the ﬁ rst chapter, are under the responsibility of the Central Finance and Contracting Agency.

In the following years we will be faced with the same task of contracting and implementation of projects from the new pre-accession IPA programme. Its objectives, purposes and structure are described in second chapter. IPA programme will be available to Croatia until the full EU membership after which Croatia will have access to the Structural and Cohesion Funds, which are available to all EU member states, as mentioned in Chapter IV.

I believe that this Handbook will be of a great interest to you and that it will provide you with the information for better understanding of the EU ﬁ nancial assistance to the Republic of Croatia and its citizens.

Marija Tufekčić

Director Central Finance and Contracting Agency

9 10

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● A brief overview of the: □ EU Humanitarian aid and OBNOVA programme, □ CARDS programme and □ Pre-accession instruments PHARE, ISPA and SAPARD.

The European Union (EU) touches our lives in to be mobilised on a large scale for humanitarian many visible and invisible ways. Using only 1% of assistance through the European Commission the EU’s overall wealth each year, the EU budget Humanitarian Offi ce – known as ECHO. The aid provides funds for roads, railways, bridges, airports, (EUR 243.2 million of the total EUR 244.87 million) waterways, power lines and pipelines; it promotes was focused largely on crisis management and the information society, and cultural and linguistic reconstruction. Moreover, food and medical support diversity; it supports training for the unemployed were provided to the people in need. and funding for job creation; it fi ghts discrimination and disability; it keeps rural economies alive; it Subsequently, between 1996 – 2000 the Community funds research of children’s diseases, the natural assistance was re-focused to support the Croatian habitat, dangerous chemicals, safe food, more government’s efforts to reconstruct a private environmentally friendly vehicles, new energy and public infrastructure, as well as community resources, and safety at sea; it fosters student and life, by promoting respect for human rights and youth exchanges; it funds urban renewal; it helps reconciliation. Since 1996, as a result of funding from small businesses set up and grow. The focus of OBNOVA, a substantial package to encourage the spending decisions and supporting different projects return and reintegration of refugees and displaced is on meeting the challenges of the modern world in persons has been delivered. the interests of a better life for its citizens. OBNOVA targeted support was rendered to the The proper, transparent, effi cient spending of the refugees’ return and to the recovery of their normal EU budget is done through careful planning based life. Reconstruction of houses went in parallel with on different types of documents. The EU renders the rebuilding of health centres and schools, small support for national development strategies and water supply works, electricity and city halls were programmes through tailored fi nancial instruments, fi nanced under the component of reconstruction of developed by the European Commission: houses, public and social infrastructure. In addition, OBNOVA supported small scale revitalisation of the ● Instruments designed for EU Member States, economy which is directed toward the everyday such as EU Structural funds, Cohesion Fund, lives of returnees focused on providing them with EU funds in the field of rural development and fi nancial start-up packages and support in the fisheries,1 revival of small businesses especially in the sectors ● Pre-accession instruments designed for of tourism, agriculture and crafts. countries preparing to join the EU, e.g. PHARE, ISPA and SAPARD were all replaced In 2000 aid to Croatia was further streamlined by the after 2007 by the Instrument for Pre-accession European Commission. The OBNOVA budget line Assistance2 (IPA), provided funds for technical assistance to selected ● Financial instruments designed for third line ministries totalling EUR 4.5 million. Gradual countries, for example OBNOVA and CARDS. preparations for a CARDS programme were begun. Croatia has also been eligible for support in the fi elds of higher education, though the Tempus programme HOW EU HELPED CROATIA IN THE and environment through the LIFE Third Countries PERIOD 1990 – 2001 programme. The following Table 1 shows EU assistance provided The support of the European Union for Croatia to Croatia from 1991 – 2000. started during the very diffi cult period of war and transition after the armed confl ict in 1991. From 1991 to 2000 the Community assistance provided to Croatia totalled EUR 381.61 million. In the period 1991-1995, the crisis in the region required funding

1 Structural and Cohesion Funds, and EU funds in the ﬁ eld of Rural Development and Fisheries are presented in Chapter IV 2 Detailed presentation of IPA is provided in Chapter II 12 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Table 1. EU assistance provided to Croatia, 1991- 2000 (EUR million)

1991 - 1995 1996 1997 1998 1999 2000 Total

Humanitarian aid (ECHO) 243.2 21.15 14.5 6.95 8.0 293.8 Refugee return (OBNOVA) 7.02 8.59 14.0 13.6 10.0 53.21 De-mining 1.0 0.5 1.5 Democracy and human rights, 0.77 1.74 6.59 5.5 0.96 15.56 media (national programmes) Democracy and human rights, 0.2 0.2 0.3 6.44 7.14 media (regional programmes) Customs 1.0 1.0 Tempus (including preparatory 0.1 1.5 1.6 activities) Environment (LIFE) 0.7 0.76 1.46 Institution building (OBNOVA) 3.0 3.0 Judiciary (OBNOVA) 0.6 0.6 SMEs (OBNOVA) 2.34 2.34 Small Scale Operations 0.4 0.4 Total 244.87 29.91 29.88 28.51 30.64 17.8 381.61

Source: The European Commission

Programme: OBNOVA - Programme for the Return of Displaced Persons to the War-torn areas of Banovina and Eastern Slavonia Implemented by UNDP-UNOPS (United Nations Development Programme/United Nations Ofﬁ ce for Project Services)

Budget: EUR 1,5 million

Objectives and results: The objective was the return of displaced persons through support of low-income families (start up packages for immediate help to returnees), regional economic revitalisation (Guarantee funds for credits and setting up of two Local Economic Development Agencies (LEDAs) in order to provide support to small businesses/enterprises, promote the creation of jobs and employment and identify investment opportunities not only in terms of capital but also in relation to a productive infrastructure needed for the regions of return.

Who beneﬁ ted from the project? Altogether, 1,080 families were visited and start-up packages were distributed to 566 of them. Considering an estimated average of 3 persons per family the programme has provided support to some 1 700 persons.

13 European Funds for Croatian Projects

Programme: OBNOVA - Local Economic Rehabilitation of the War-affected areas and other disadvantaged regions in Croatia – Small Enterprises Support Implemented by UNDP-UNOPS (United Nations Development Programme/United Nations Ofﬁ ce for Project Services)

Budget: EUR 2,34 million

Objectives and results: The overall objective of the project was to increase the employment and income levels in the war affected areas and other less developed regions of Croatia – Dalmatia, Banovina, Western Slavonia and therefore contributing to a sustained process return by: ● Capacity Building activities (Local Development Agencies and training to entrepreneurs) ● Credits for small entrepreneurs through the Croatian banking system ● Regional sub-sectoral projects – i.e. rural tourism and organic food production

Who beneﬁ ted from the project? The project provided beneﬁ ts to small entrepreneurs (existing and new), local economic development agencies, local and returnee families and local tourist services providers.

EU Contribution to Humanitarian Demining Activities in the Republic Of Croatia

European Union assistance programmes have training of mine clearance specialists and mine been contributing to Croatian mine action since clearance instructors in Croatia. With the signing 1998. On 9 November 1998 the European Union of the Memorandum of Understanding between Council adopted a decision concerning a speciﬁ c the Government of the Republic of Croatia and the action of the Union in the ﬁ eld of assistance in WEU in April 1999, the Western European Union mine clearance. With this Council Decision, the Demining Assistance Mission (WEUDAM) was sent EU requested, under article J.4.2 of the Maastricht to Croatia the following month. Treaty, that the Western European Union implement actions consisting of coordination, supervision and

From 1998 to 2001 the EU provided funds for the purposes of UN programmes, WEUDAM functioning and scientiﬁ c research. Funds were allocated through the UN Voluntary Fund and WEUDAM except for the scientiﬁ c research into mine action where funds were directly given to Croatian mine action centre - CROMAC. The total value of awarded funds for these projects in the period from 1998-2001 is EUR 3,1155 milliomillion.n.

Thanks to the EC ﬁ nancial contribution to demining activities in Croatia, more than 60 projects were completed from 2001 until 2008, removing the mine threat from an area of 12 km2.

The total EU contribution for mine action in Croatia from 1998 until today amounts to more than EUR 14,8 million.

14 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

HOW CROATIA BENEFITED FROM THE CARDS PROGRAMME IN THE PERIOD 2001 - 2004

In 2000 the EU offered a new programme of region. The focus of assistance has been primarily assistance to Croatia, called CARDS (Community the building up an institutional, legislative, economic Assistance for Reconstruction, Development and and social basis in accordance with EU values and Stabilization), as an instrument for the support and the promotion of a market economy. A precondition implementation of the Stabilisation and Association for receiving assistance has been respect for Agreement and Process. The overall objective of the democratic principles, the rule of law, human and programme has been the full integration of Croatia minority rights and fundamental freedoms. The into the European Union, thereby it had a clear pre- overall ﬁ nancial amount of the CARDS National accession direction. Programme for the period 2001 - 2004 in Croatia is EUR 260.0 million. The Annual allocations per The legal basis establishing the programme priorities and measures are provided in Table 2. CARDS is Council Regulation (EC) 2666/20003 on assistance to Croatia and other countries in the

Table 2. EU assistance provided through the CARDS National Programme in Croatia, 2001-2004 (EUR million)

Annual allocations (EUR million) Priority Measures 2001 2002 2003 2004 Total 1. Democratic 1.1. Return of refugees 23.2 14.0 15.0 14.0 66.2 Stabilisation and internally displaced persons 1.2. Civil society 1.0 2.0 2.0 3.5 8.5 2. Economic 2.1. Trade 3.0 3.0 2.5 4.75 13.25 and Social 2.2. Investment climate 3.3 9.0 6.15 6.0 24.45 Development 2.3. Social cohesion 7.6 6.0 8.85 7.0 29.45 (including Tempus) 3. Justice and 3.1. Modernisation of 1.5 4.0 4.0 4.5 14.0 Home Affairs justice 3.2. Policing and - 2.0 3.0 3.4 8.4 organised crime 3.3. Integrated border 12.6 4.0 5.0 18.95 40.55 management 4. Administrative 4.1. Public administration 2.5 6.0 6.0 9.1 23.6 Capacity reform building 4.2. National, regional 1.5 2.0 3.0 3.0 9.5 and local development 4.3. Public ﬁ nance 4.0 2.8 3.0 9.8 5. Environment 1.8 3.0 3.7 3.8 12.3 and natural resources TOTAL: 58.0 59.0 62.0 81.0 260.0

Source: EC Delegation to Croatia

3 European Commission, Directorate General for Enlargement: http://ec.europa.eu/enlargement/pdf/ﬁ nancial_assistance/cards/general/2666_00_en.pdf 15 European Funds for Croatian Projects

The overall ﬁ nancial amount of the CARDS Regional Programme for the period 2001 – 2006 is EUR 183,7 million (see Table 3). The following countries are beneﬁ ciaries of CARDS Regional Programme: Croatia, Albania, Bosnia and Herzegovina, Montenegro, FYROM and Serbia.

Table 3. EU assistance provided through CARDS Regional Programmes to Croatia, Albania, Bosnia and Herzegovina, Montenegro, FYROM and Serbia for the period 2001-2006 in EUR million

Programme Annual allocations (EUR million) 2001 2002 2003 2004 2005 2006 Total CARDS Regional Programme 14.0 43.5 31.5 15.0 47.9 31.8 183.7

Source: CODEF

The assistance was determined by two main In addition to the CSP, MIP lays down the documents for Croatia – Country Strategy Paper programmes with their objectives, the expected and Multi-annual Indicative Programme (MIP). results that are to be ﬁ nancially supported by The Country Strategy Paper (CSP) for Croatia CARDS and the indicators for achievement of those set out objectives, policies and priority ﬁ elds for priorities and results. cooperation.

Within the CARDS programme all the projects were fi nanced entirely by EU funds without the requirement for co- fi nancing except for small scale grants where fi nal benefi ciaries had to ensure co-fi nancing of 20%.

Trade has been encouraged through modernisation of Croatian customs services.

Police operations especially the border police in Croatia have been strengthened.

In the environmental fi eld, in major sector areas (waste, water, air) legislation has been harmonised with EU requirements with the main emphasis on horizontal areas – an Environmental Impact Assessment for investment projects and Strategic Assessment for Plans and Programmes. Also, signifi cant support has been focused on assisting the civil society organizations active in the environmental fi eld.

16 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Some examples of CARDS projects show the scope of EU ﬁ nancial support and the results achieved.

Programme: CARDS 2002-2004 Sustainable Development of war-affected areas

CARDS 2002 Sustainable Development of war-affected areas in Zadar & Šibenik-Knin Counties

Budget: EUR 12,2 million

Objectives and results: The project's main aim was to contribute to the updating and implementation of the Regional Operational Programmes (ROP), which set development priorities for Zadar and Šibenik-Knin counties. In line with EU best practices, Regional Development Partnerships, composed of 36 representatives from local authorities, social partners, local agencies and civil society, were established in both counties. A major outcome of their work has been the identifi cation and selection of projects to be funded under the CARDS 2002’s budget and the updating of the Regional Operational Programme. In line with the Partnership decision supported by the Šibenik- Knin and Zadar counties’ administration, the project has been funding a number of major infrastructure works (water supply system, business zone, Mandalina business incubator), which have contributed to the improvement of the local populations’ living conditions. In Zadar, the Regional Development Partnerships decided to fi nance the de-mining of some very important agricultural areas in Nadin Lušci, Babin Dub, Kašić, Tinj, Benkovac, Islam Latinski, Kašić Veljane, Tinj-Gubavice, Baždarići residential area and Islam Latinski. The project also fi nanced a Tourism and Marketing Master Plan for Šibenik-Knin, which provided useful recommendations for developing the County’s tourism potential without endangering its unique environment.

Local regional development initiatives were also encouraged through a grant scheme, which supported 15 projects in the ﬁ elds of tourism, Small and Medium – sized Enterprises (SME) development and agriculture, in line with the priorities established by the partnerships in 2004. 9 grants are being implemented in Zadar County, 4 in Šibenik- Knin County and 2 in both counties, thanks to the following leading partners: in Šibenik-Knin County: the tourist associations of Skradin and Knin, Toscana Promozione (Italy), and Regional Development Agency ‘Mura’ from Slovenia; In Zadar County: the city library, the town of Benkovac, the municipalities of Polača, Novigrad, Galovac and Kukljica, National parks Paklenica and Vransko jezero as well as the Zadar Craftsmen Association.

The cities of Knin and Drnis received technical assistance for the preparation of tender documents with a view to the modernization of their wastewater and water supply systems, and the city of Benkovac received assistance to prepare a tender dossier, a feasibility study and a grant application for the construction of a business related infrastructure. The project has also been an important learning exercise for local stakeholders who had the opportunity to apply the principles and mechanisms of EU regional development policy for the ﬁ rst time in their county. In doing so, Šibenik-Knin & Zadar counties went a long way towards preparing themselves for the future Structural Funds (i.e. the budget that the EU assigns to the development of its regions), available once Croatia accede to the EU. The project also designed and implemented a special training programme for the members of the Partnerships to acquaint them with EU institutions and policies and strengthen their knowledge in regional development policy.

Who beneﬁ ted from the project? Local and regional authorities, farmers, small businesses, public institutions, different organisations and citizens of the area.

17 European Funds for Croatian Projects

Programme: CARDS 2004 Sustainable Development of War Affected Areas - County Development Capacity and Management

Budget: EUR 11,1 million

Objectives and results: The overall purpose of this project has been to provide capacity building and training at both county and municipal level for: the identiﬁ cation, preparation, management and follow – up (monitoring) of locally driven development projects. With consideration to the priorities established in each of the Counties' Regional Operational Programme (ROP), the projects that were in line with the ROP – and thus contributed to the overall development of the county – have been selected by the County Partnerships Committees (CPC) and prepared with the technical support of the County Project Management Units (PMU).

One of the speciﬁ c objectives has been to prepare projects for tendering in line with EC procurement procedures. 13 projects have been prepared in line with the EC procurement procedures and submitted, successfully tendered and contracted by the CFCA (Ministry of Finance) in June 2007. Some projects were related to infrastructure, while others aimed at improving business investments, clearing mine suspected areas, providing technical assistance to high level education centres, or simply for promoting tourism.

Who beneﬁ ted from the project? Four war affected counties have beneﬁ ted from this project: Karlovac County (Karlovac), Lika – Senj County (Sveto Brdo, Krasno), Požega – Slavonia County (Požega, Pakrac) and Brod – Posavina County (Sl. Brod, Nova Gradiška). Local and regional authorities, public institutions (schools, technical universities, tourism institutions, hospitals), municipal companies, small businesses and citizens of the regions.

Programme: CARDS 2003 – Support to Public Administration and Civil Service Reform

Budget: EUR 1.7 million

Objectives and results:The objective of the project has been to signifi cantly support the building up of a professional Civil Service – transparent, reliable, accountable, cost-effective, fl exible and practical. The project represented one of the most challenging tasks that has a horizontal and cross-sectoral impact on the development of the economy and society as a whole. The project created a basis for establishing functioning and effi cient public administration with a new, citizen-friendly culture. The project followed EU requirements and the application of new solutions for information exchange and communication technologies ("e-administration" and "one-stop- management" organisation) and modernised human resources management. The major results have been the new draft Law on General Administrative Procedures, the pilot implementation of the Law on Civil Service and human resource management development.

Who benefi ted from the project? The direct benefi ciary of the project has been the Central State Offi ce for Administration but also public administration and the civil service as a whole. In this particular case, the project’s objectives, in the medium term, also impact on the everyday life of each citizen of Croatia.

18 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

WHAT SUPPORT WAS PROVIDED TO CROATIA THROUGH PHARE, ISPA AND SAPARD DURING THE PERIOD 2005 - 2006?

After the positive opinion of the European The assistance under pre-accession funds for the Commission on Croatia’s application for membership gradual integration to the Union is in comparison to the European Union, Croatia became a Candidate to the CARDS programme becoming substantially Country in June 2004. The strategic document larger, and focused on fi nancially bigger projects of the European Commission on progress in with obligatory co-fi nancing from the side of the the enlargement process4 has elements of pre- benefi ciary country. For the implementation of the accession strategy for Croatia and presents the basis three programmes, EUR 105 million have been for utilization of pre-accession funds (instruments) - allocated in 2005 and EUR 140 million in 2006 (see PHARE, ISPA and SAPARD to enhance important Table 4). political, economic, social and institutional reforms.

Table 4. EU assistance to Croatia through CARDS, PHARE, ISPA and SAPARD, 2001-2006 (EUR million)

Programmes 2001 2002 2003 2004 2005 2006 Total

CARDS National 58.00 59.00 62.00 81.00 - - 260.00 Pre-accession: 105.00 140.00 245.00 PHARE 80.00 80.00 160.00 ISPA 25.00 35.00 60.00 SAPARD 0.0 25.00 25.00 TOTAL 58.00 59.00 62.00 81.00 105.00 140.00 505.00

The pre-accession strategy is designed to prepare Croatia for future membership. Besides the pre- accession assistance, the following framework documents and mechanisms have been applied: ● Stabilisation and Association Agreement, ● Accession Partnership, ● Participation in Community Programmes5, ● National Programme for the Integration of Croatia into the EU, ● Annual Progress reports.

4 COM (2004) 657 ﬁ nal, April 20, 2004, The strategic document of the European Commission on progress in the enlargement process, European Commission, Brussels, 2004 5 more about Community Programmes is provided in Chapter III 19 European Funds for Croatian Projects

What is the Progress report for Croatia? What is the National Programme for Integration (NPIEU) of Croatia to the EU? It is an annual report about Croatia preparing for EU membership. Progress is measured on the basis of The National Programme presents an annual plan decisions taken, legislation adopted and measures of measures – legal, administrative and institutional implemented. - required to achieve the political and economic The report is based on information gathered and criteria and the ability to assume the obligations for analysed by the Commission. In addition, many membership to the EU. sources are used, including contributions from The NPIEU measures are defi ned in line with the the government of Croatia, the Member States, priorities identifi ed in the Accession Partnership and European Parliament reports, and information Croatia’s Negotiations framework. from various international and non-governmental organisations. The report basically: □ briefl y describes the relations between Croatia and the Union; □ analyses the situation in Croatia in terms of political criteria (democracy and rule of law, human rights and the protection of minorities) for membership; □ analyses the situation in Croatia on the basis of economic criteria (the existence of a functioning market economy and the capacity to cope with competitive pressures and market forces within the Union) for membership; □ reviews Croatia's capacity to assume the obligations of membership, that is, the acquis laid down in the Treaties, the secondary legislation, and the policies of the Union.

The three pre-accession instruments are managed The accumulated experience in the management by the Croatian authorities, however their of the pre-accession programmes including EU implementation is supervised by the European rules and procedures will be of certain beneﬁ t to the Commission through its services in Brussels future management of IPA and EU structural funding (Directorate General Enlargement, Directorate in Croatia. General for Regional Policy, Directorate General for Agriculture) and the Delegation of the European Commission in Zagreb.

Each of these pre-accession instruments has its own speciﬁ c objectives, however all of them prepare Croatia to beneﬁ t in the future from the funding instruments designed for EU Member States: ● PHARE is a preparatory programme for EU Structural funds which support actions for regional development and the development of human resources. ● ISPA is the precursor of the EU Cohesion Fund dealing with large-scale infrastructure projects in the sectors of transport and the environment. ● SAPARD is the “warming-up” programme for the European Agricultural Fund for Rural Development.

20 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

PHARE PROGRAMME

The PHARE programme is the main fi nancial instrument of the European Union Pre-accession strategy for Croatia, established by Council Regulation 3906/1989/EC6. The abbreviation To kknownow moremore PHARE comes from French language and stands for: Pologne et Hongrie - Aide á Restructuration The prprioritiesiorities for fundingfunding in Croatia within pre-pre- Economique, because PHARE was originally accession instruments PHARE, ISPAISPA and SAPARDSAPARD designed to support the reform process in Poland are developeddeveloped on the basis ofof a specispecifi c document and Hungary. agreedagreed byby both the EU and Croatia, called the PHARE funding in Croatia operates in two main AccessionAccession PartnershiPartnership.p. This document identifi es directions: the short and medium term prioritiespriorities forfor Croatia’sCroatia’s accessionaccession to thethe EU andand basicallybasically presentspresents thethe ● A major proportion of the funds is intended areasareas to whichwhich thethe fundsfunds needneed to bebe aimed.aimed. ItIt is to strengthen the institutions/human capacity periodicallyperiodically updatedupdated to better refl ect the pprocessesrocesses in the process of a harmonisation of national of the country’scountry’s development.development. legislation with the European Union acquis and its implementation and enforcement. ● The other part is intended for the support of economic and social cohesion actions

Although, ideally the Phare programme had a The Phare projects support 8 priorities established purpose to support multi-annual projects i.e. phased in the Accession Partnership: 1) democratization projects, through a multi-annual programming and the rule of law, 2) human rights and protection process, in the case of Croatia multi annual of minority rights, 3) economic criteria, 4) internal programming was not feasible due to the limited market and trade 5) sectoral policies, 6) cooperation availability of the programme for Croatia - only two in justice and home affairs, 7) support programmes years. For each year, 2005 and 2006, separate and 8) economic and social cohesion. Financing Agreements were signed. The Financing Agreements signed between representatives of the The majority of the projects under the Phare European Commission and the Croatian Government programme are ﬁ nanced via technical assistance presents the legal basis for the ﬁ nancing of the and a twinning mechanism which is usually projects under the different budget years. complemented by the purchase of supplies required for acquis implementation7.

What is Acquis communautaire or brieﬂ y acquis?

This is a French term meaning, essentially, "the EU as it is" – in other words, the rights and obligations that EU countries share. The "acquis" includes all the EU's treaties and laws, declarations and resolutions, international agreements on EU affairs and the judgments given by the Court of Justice. It also includes actions that EU governments take together in the areas of justice and home affairs and common foreign and security policy. "Accepting the acquis" therefore means taking the EU as you ﬁ nd it.

Candidate countries have to accept the "acquis" in its entirety before they can join the EU, and make EU law part of their own national legislation.

6 Source: Central Ofﬁ ce for Development Strategy and Coordination of EU funds, PHARE http://www.strategija.hr/Default.aspx?sec=35 7 more about EU funded public contracts is presented in Chapter V. 21 European Funds for Croatian Projects

What is technical assistance? What is twinning?

This is a type of action which helps the future Twinning projects are another technical assistance Member State, like Croatia, to develop its public tool. They provide the framework for the public structures, reform strategies, human resources administrations and semi-public organisations in the and management skills needed to strengthen Candidate Country to work with their counterparts the country’s economic, social, regulatory and from one or more EU Member States. administrative capacity. Technical assistance is A twinning model is usually the most suitable provided mainly by the transfer of “know-how” e.g. approach in accepting the standards and best assistance in the harmonisation and implementation practices in the implementation of the acquis. of legislation, direct expert assistance for the elaboration of strategic documents, education activities etc.

ToTo kknownow moremore

InIn aadditionddition to EU pre-accessionpre-accession programmes,programmes, anotheranother ﬁ nnancialancial instrumentinstrument isis availableavailable toto CCroatiaroatia - TAIEX oorr ththee TTechnicalechnical AssistanceAssistance andand IInformationnformation ExchanExchange,ge, which is an instrument of the DDirectorate-Generalirectorate-General EnlargementEnlargement ofof the European CCommission.ommission. TAIEX helps countries with regardregard to the aapproximation,pproximation, applicationapplication and enforcement ooff EU lelegislation.gislation. It is largelylargely demand driven and cchannelshannels requests for assistance and contributes to the deliverdeliveryy of appropriate tailor-made expertise to address problems at short notice.

The list of CARDS and PHARE projects, implemented in Croatia, are available on the web page of the Central Ofﬁ ce for Development Strategy and Coordination of EU funds in charge of overall EU funds coordination8.

Programme: PHARE 2005 - Enhancement of administrative capacity in maritime safety

Budget: EUR 0.6 million

Objectives and Results: The goal of this project is to set up a service for the monitoring and management of vessel traffi c with an adequate information system in accordance with recommendations of the International Maritime Organization (IMO) and Directive 2002/59/EC on the implementation of the Vessel Traffi c Management Information System (VTMIS) in the Adriatic Sea. The implementation of the VTMIS system shall enable: management of vessel traffi c, less accidents at sea, better results in search and rescue operations at sea, less pollution from vessels at sea, better management of port resources in port operations and improved effi ciency in combined transport. The project started in January 2008 with a planned duration of 18 months.

Who beneﬁ ts from the project? Project beneﬁ ciary is the Ministry of Sea, Transport and Infrastructure also the port authority staff and the National Headquarters for Coordinating Search and Rescue Operations at Sea.

8 Source: Central Ofﬁ ce for Development Strategy and Coordination of EU funds - http://www.strategija.hr 22 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Programme: PHARE 2005 Implementation of ecological network - NATURA 2000 in Croatia

Budget: EUR 2.5 million

Objectives and results: The aim is to support Croatian authorities in approximation with the EU Habitats and Birds directives in designating protected areas. Although the State Ofﬁ ce for Nature Protection has already prepared a proposal for the NATURA 2000 network in Croatia, it will take a few years before the network is actually implemented and fully operational when Croatia becomes a EU Member State. The project is structured along the following lines: ● defining a final proposal for NATURA 2000 network ● preparing a Management Plan for the Vransko Jezero Nature Park and the Jasen area ● development and implementation of management plans for large carnivores, Gorski Kotar ● specialised training for the impact assessment of projects and programmes on ecological NATURA 2000 sites

Who benefi ts from the project? The main benefi ciaries are the State Offi ce for Nature Protection and the Ministry of Culture, Directorate for Nature Protection. Also, the benefi ciaries are local and regional authorities, tourist organizations, small businesses, farmers, inhabitants of the designated sites and the general public. www.natura2000.hr

ISPA PROGRAMME To kknownow moremore

In tthehe environmental sectorr the pprogrammerogramme Since 1st January 2005 Croatia has beneﬁ tted concentratesconcentrates on the so called “investment“investment heavy”heavy” from ISPA (Instrument for Structural Policies for environmentalenvironmental directives,directives, i.e.i.e. thethe directivesdirectives thatthat are Pre-Accession) established by Council Regulation costlycostly to implement.implement. PriorityPriority is thereforetherefore givengiven to 1267/1999/EC9, which has been designed to projectsprojects which concern:concern: address the country’s environmental and transport infrastructure priorities. ISPA is based on the ● the qualityquality and supplysupply ofof drinkingdrinking water; principles that govern the EU Cohesion Fund, which ● the collection and treatment of wastewater;wastewater; operates in the Member States of the Union10. ● the collection and solid waste management;management; ● the reduction ofof air pollution.pollution. ISPA deals with large-scale investment support, and comes under the responsibility of the Directorate- General for Regional Policy of the European Commission.

The basis for using of ISPA ﬁ nancing are national ISPA Transport and Environment Strategies, outlining the main sectoral priorities, project proposals and the selection criteria. In tthehe transporttranransportsport sectsectororr IISPASPA asassistancesiisttanancece fafavoursfavours transporttransport infrastructure projectsprojects which encourageencourage sustainable formsforms ofof movingmoving peoplepeople and goods,goods, in particularparticular projectsprojects which are ofof CommunityCommunity interest, suchsuch as projectsprojects alongalong thethe pan-Europeanpan-European transporttransport corridors.corridors. ISPAISPA contributes to the develodevelopmentpment ofof railways,railways, roads,roads, portsports andand airports,airports, takingtaking intointo account thethe requirementsrequirements forfor sustainable development.development.

9 Source: Central Ofﬁ ce for Development Strategy and Coordination of EU funds, ISPA http://www.strategija.hr/ Default.aspx?sec=36 10 more about Cohesion fund, please see Chapter IV 23 European Funds for Croatian Projects

Three infrastructure projects selected for ﬁ nancing under ISPA 2005 and 2006 programmes in the environment and transport sectors are presented, following 50%:50% division of available funds between the two sectors:

ISPA infrastructure projects in Croatia - environment sector:

Water Sector ● Project title: Karlovac Water and Waste Water Programme ● Total investment value: EUR 36 million (ISPA: EUR 22.5 million) ● Final beneficiary: Vodoopskrba d.o.o. Karlovac, County of Karlovac

Project description: The project funding is aimed to support wastewater treatment, decrease of currently high water loss and uncompensated water use and a decrease of groundwater inﬁ ltration to the water supply system. The investment focused on the construction of the wastewater treatment plant, pumping stations, 10 km of sewage network and partial replacement of the existing sewage network. The project will also ﬁ nance replacement of a 10km long pipeline for the water supply, supply of the equipment and training of staff for its use.

Waste Sector ● Project title: Bikarac Regional Waste Management Centre (RWMC), Stage 1 ● Total investment value: EUR 8.8 million (ISPA: EUR 6 million) ● Final beneficiary: Gradska čistoća d.o.o. Šibenik, County of Šibenik-Knin

Project description: The investment under the project is support for the fi rst phase of establishing a modern, environmentally sound regional waste management system in the Šibenik Knin County. The project will support i) the construction of the new Regional Landfi ll Bikarac (RWMC) and the closure of the existing disposal site at that location, ii) the implementation of a pilot project for the segregation and recycling of collected waste, iii) the closure and remediation of the existing disposal site in the town of Pirovac and iv) the technical assistance for project management and training of staff of the future RWMC. The Project aims at closing and re-mediating the existing 8 unsustainable solid waste landfi lls and replaces them with RWMC for use in the next 25 years. Under this project waste collection services will be extended to cover all the towns and municipalities and to reduce, by at least 25 %, the amount of municipal waste landfi lled by 2025 and to progressively introduce recycling and waste segregation measures so that they cover all the towns and municipalities in the county by the year 2025.

Technical Assistance project: includes preparation of investment projects in drinking water and wastewater and waste management subsectors for future ﬁ nancing (IPA, Cohesion Fund).

24 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

ISPA infrastructure projects in Croatia - transport sector:

● Project title: Vinkovci to Tovarnik to State Border Railway Rehabilitation ● Total investment value: EUR 75.761 million (ISPA: EUR 28.8 million) ● Final beneficiary: Hrvatske željeznice Infrastruktura – Croatian Railways Infrastructure

Project description: This project funding supports upgrading of the railway infrastructure and security system of the section Vinkovci- Tovarnik to the state border, which is part of the corridor X of the Trans-European network.

The project worth over EUR 60 million is co-ﬁ nanced from the ISPA pre-accession fund.

The European Commission is co-fi nancing the project in the amount of EUR 28.789 million (38%) under the ISPA programme, while the rest of the funds are allocated from the Croatian State budget. The reconstruction of the railway Vinkovci - Tovarnik - State Border is the fi rst project of this size in Croatia to be fi nanced under the EU pre-accession funds and the fi rst one in which investments in railway infrastructure are co-fi nanced. The project benefi ciary is Croatian Railways Ltd and it is coordinated by the Ministry of Sea, Transport and Infrastructure.

The upgrading will include: i) railway works, ii) electriﬁ cations, iii) a new signalisation system, iv) railway crossings, v) a functioning telecommunication system and vi) investment in train stations.

With the implementation of those project components the train speed should reach 160 km/h up from the current 40 km/h.

The Croatian Finance Minister, the Sea, Transport and Infrastructure Minister and the Head of the European Commission Delegation to Croatia all marked the beginning of the reconstruction works on the railway Vinkovci - Tovarnik - State Border, from Djeletovci to State Border, at the Djeletovci rail station in September 2008.

Technical Assistance projects include preparation of investment projects in the transport sector for future ﬁ nancing (IPA, Cohesion Fund).

25 European Funds for Croatian Projects

For each project under the ISPA programme a Further information on the ISPA programme in Memorandum of Financing is signed between Croatia is available at the web page of the Central representatives of the European Commission and the Offi ce for Development Strategy and Coordination of Croatian Government. Each Memorandum defi nes EU funds in charge of overall EU funds coordination the obligations and the implementation modalities in Croatia. for each project and the fi nancial allocation provided by ISPA and the co-fi nancing rate to be secured by Croatia. The co-fi nancing rates vary from project to project based on specifi c cost benefi t analysis.

SAPARD PROGRAMME

SAPARD – the Special Accession Programme tasks the Ministry closely cooperates with the for Agriculture and Rural Development (Council Directorate-General for Agriculture of the European Regulation 1268/1999/EC11) - is aimed to help Commission. Croatia deal with the structural adjustment problems in the sectors of agriculture and rural development The SAPARD programme in Croatia ﬁ nances the and raise their competitiveness in relation to the EU following main agricultural and rural development market. Additionally, SAPARD prepares the country measures: for the implementation of the EU acquis in the area of the EU Common Agricultural Policy through ● Measure 1 - improving the quality of products, provision of legal, administrative and institutional reducing the production costs, increasing support to the relevant authorities. competitiveness, upgrading the production system, reducing environmental pollution, The implementation of SAPARD in Croatia is and reaching EU sanitary, veterinary and based on the Agriculture and Rural Development environmental standards; Plan of the country for the period 2005-2006 and ● Measure 2 - upgrading facilities for processing in accordance with the Multi-annual Financing agricultural and food products, improving the Agreement (MAFA). management of animal waste, increasing market competitiveness and reaching EU The programme is managed under a decentralised sanitary, veterinary and environmental model and overall responsibility for the programme standards. management is with the national authorities and the Ministry of Agriculture, Fisheries and Rural Two examples, provided below, present projects Development in Croatia. In performing their ﬁ nanced under each of the measures.

Programme: SAPARD – Measure 1 “Investment in agricultural holdings”, Cereals and Oil-Crops Sector Project beneﬁ ciary: PZ Čakovec (Agricultural cooperative), Čakovec Contracting year: 2007 Total investment value: EUR 591,767 Project description: The project will support the construction of facilities and purchase of equipment for the drying and storage processes of cereals and oil crops.

Objectives of the Project: ● To enhance the storage capacity by 990 tonnes; ● To increase the number of employees and to create 5 new working places; ● To increase the production and sale of cereals by 997 tonnes, of oil crops - by 7 tonnes, of vegetables - by 96 tonnes, of beet cattle - by 9 tonnes and of production of pigs - by 93 tonnes .

11 Source: Central Ofﬁ ce for Development Strategy and Coordination of EU funds, SAPARD http://www.strategija.hr/Default.aspx?sec=37 26 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Programme: SAPARD – Measure 2 “Improving the processing and marketing of agricultural and ﬁ sheries products”, Fisheries Sector

Contracting year: 2006 Project benefi ciary: Arbacommerce, Zadar Total investment value: EUR 818,071 Project description: The project will support the construction and reconstruction of processing facilities, which will carry-out an initial preparation and processing of fi sh and shellfi sh, construction and reconstruction of shellfi sh purifi cation centres and of their heating facilities. The equipment to be purchased under the projects will be for cooling, for processing and for packaging of fi sh products. The Objective of the Project is to increase production of sea fi sh, both fresh and frozen, by 1 423 tonnes.

Further information on the SAPARD programme in Croatia is available on the web page of the Central Ofﬁ ce for Development Strategy and Coordination of EU funds in charge of overall EU funds coordination in Croatia and the Ministry of Agriculture, Fishery and Rural Development12.

All previously mentioned ﬁ nancial instruments from CARDS to PHARE, ISPA, SAPARD have legal basis established at EU level. Also, a wider political context (for example the enlargement framework for pre-accession programmes) and EU policy requirements (for example environment policy, transport policy) are transferred to the content supported by the particular ﬁ nancial instrument for the country. The supported actions should also be in line with national strategic documents and national development documents. Table 5 summarizes the documents relevant for different programmes:

Table 5. Relevant documents for EU pre-accession programmes

Programme CARDS PHARE ISPA SAPARD

Legal basis Council Regulation Council Regulation Council Regulation Council Regulation 266/2000/EC 3096/1989/EC 1267/1999/EC 1268/1999/EC

Annual Financing Annual Financing Financing Memoranda Multi-annual Financing Agreements (2002-2004) Agreements Agreement (2005; 2006) Annual Financing Agreement

Agriculture and Rural Development Plan for SAPARD

Strategic Country Strategy Paper General strategic ISPA Environment documents documents in the pre- Strategy Multi-annual Indicative accession process – Programme Accession Partnership, ISPA Transport Strategy NPIEU, Progress reports)

Operating Guidelines for Operational Manuals Rulebook on SAPARD documents programming for 2005 implementation and 2006 ISPA Monitoring Manual

Manual for monitoring

Implementing Project fi ches Project Applications Project Applications documents Tender documentation Tender documentation Tender documentation (Terms of Reference, (Terms of Reference, (Terms of Reference, Technical specifi cation, Technical specifi cation, Technical specifi cation, Bill of Quantities, Grant Bill of Quantities, Grant Bill of Quantities, Grant applications) applications) applications)

Monitoring Reports Monitoring Reports Monitoring Reports

Evaluation Reports Evaluation Reports Evaluation Reports

12 http://www.mps.hr/projekti/projekt.asp?PID=42 27 European Funds for Croatian Projects

Although, the documents have different names and are different in some other details from one programme to the other, the logic behind them is always the same - multi-annual strategic planning and transparent programme implementation according to standardised rules.

All projects under CARDS National Programme 2001 – 2004, CARDS Regional Programme 2001 – 2006 and PHARE National Programme 2005 – 2006 are provided in the following tables (see Tables 6 to 17):

Table 6. List of projects under the CARDS National Programme – 2001

CARDS 2001 National Programme € million 1. Political priorities 23.20 1.1. Return of refugees 1.1.1. Reconstruction and related issues 19.00 1.1.2. Economic sustainability 4.20 2. Economic Development 12.40 2.1. Human resources 2.1.1. Vocational Education and Training 0.60 2.1.2.TEMPUS 4.00 2.1.3. Labour market restructuring 3.00 2.2. EU Industrial Standards 3.00 2.3. Municipal environmental management capacity and infrastructure in the areas of special state care 1.80 3. SAA Obligations 20.40 3.1. Justice and Home Affairs 3.1.1. Support to Judicial Academy in Croatia – Training for Judges 1.50 and Other Ofﬁ cials 3.1.2. Reform of the asylum policy 3.2. Integrated Border Management 12.60 3.3. Public Administration Reform 1.50 3.4. Statistics 1.50 3.5. Intellectual Property 1.80 3.6. Competition Policy 1.50 4. Complementary Measures 2.00 4.1. Small scale operations 1.00 4.2. Strategy Development Capacity Building 1.00 TOTAL 58.00

The Financing Agreement for CARDS 2001 between the Croatian Government and the European Union was signed on 12 July 2002.

28 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Table 7. List of projects under the CARDS National Programme – 2002

CARDS 2002 National Programme € million 1. Democratic Stabilisation 16.00 1.1 Return of refugees and internationally 1.1.1 Sustainable development in return areas 14.00 displaced persons 1.2 Civil Society 1.2.1 Promotion of democracy and human rights 0.50 1.2.2 Social Service provision by non-profi t sector 1.50 2. Economic and Social Development 18.00 2.1 Trade 2.1.1 Capacity building in the area of agriculture, live animals and 1.75 food products 2.1.2 Capacity building in the area of consumer protection 1.25 2.2 Investment climate 2.2.1 Support to the cadastre and land registry reform 5.00 2.2.2 Development of the business and investment climate in Croatia 1.80 2.2.3 Strengthening of the Croatian Public Procurement System 1.00 2.2.4 Support to the Croatian state aid system 1.20 2.3 Social cohesion 2.3.1 Vocational Education and Training: modernisation and 1.50 institution building 2.3.2 Local Partnership Employment 0.90 2.3.3 Higher education mobility: diploma recognition policy and 0.60 legislation 2.3.4 TEMPUS 3.00 3. Justice and Home Affairs 10.00 3.1 Modernisation of Justice – support to effectively improve the operation and functioning of the Croatian Court 4.00 system 3.2 Policing and fi ght against organised 3.2.1 Criminal Intelligence System - phase I 2.00 crime 3.3 Integrated Border Management 3.3.1 Development of the National border management Information 2.50 System 3.3.2 Strengthening the border sanitary inspection and food control 0.75 3.3.3 Strengthening the phytosanitary inspections system 0.75 4. Administrative Capacity Building 12.00 4.1 Public Administration Reform 4.1.1 Capacity Building Facility for Croatian state institutions 3.50 4.1.2 Capacity Building for the Offi ce for Prevention of Corruption 1.00 and Organised Crime (USKOK) 4.1.3 Fiscal decentralisation, equalisation and capacity measurement 1.50 4.2 National, regional and local development 4.2.1 Strategy and capacity building for regional development 2.00 4.3 Public Finance 4.3.1 Development of public internal fi nancial control and internal 1.50 audit 4.3.2 Development of public debt management capacity 1.50 4.3.3 Community transit-conform customs procedures and IT 1.00 interconnectivity system 5. Environment and Natural Resources 3.00 5.1 Strategy for EU environmental law approximation 1.20 5.2 Pilot waste management strategy for Dalmatia 0.80 5.3 Water Information System – standardisation and monitoring 0.80 5.4 Support to environmental NGO network 0.20 TOTAL 59.00

The Financing Agreement for 2002 between the Croatian Government and the European Commission was signed on 17 December 2002.

29 European Funds for Croatian Projects

Table 8. List of projects under the CARDS National Programme – 2003

CARDS 2003 National Programme € million 1. Democratic Stabilisation 17.00 1.1 Return of refugees and internationally 1.1 Sustainable development in the return areas 15.00 displaced persons 1.2 Civil Society 1.2.1 Promotion of democracy and human rights 0.50 1.2.2 Social service provision by the non profi t sector 1.50 2. Economic and Social Development 17.50 2.1 Trade 2.1.1 Development of accreditation systems and support to national 1.30 testing and calibration laboratories 2.1.2 Capacity building in the area of plant health 0.60 2.1.3 Strengthening the Croatian Veterinary Service 0.60 2.2 Investment Climate 2.2.1 Registration of maritime domain 2.00 2.2.2 Strategic plan for the long-term development of existing free 2.10 zones in Croatia 2.2.3 Further strengthening of the Competition Protection Agency 0.45 and implementation of competition law and policy 2.2.4 Strengthening of the intellectual property implementation 1.00 system 2.2.5 Intellectual property infrastructure for the research and 0.60 development sector 2.3 Social Cohesion 2.3.1 Upgrading of vocational education and training schools – 4.00 establishing centres of excellence 2.3.2 Decentralisation and reorganisation of the Croatian 0.50 Employment Agency 2.3.3 Upgrading of labour market statistics 0.35 2.3.4 Further improvement of the Quality Assurance Agency and 1.00 supporting a Management Information System in Higher Education 2.3.5 TEMPUS III 3.00 3. Justice and Home Affairs 12.00 3.1 Modernisation of Justice 3.1.1 Training and education of prosecutors 1.00 3.1.2 Ongoing support to the more effi cient, effective and modern 3.00 operation and functioning of the Croatian Court system 3.2 Policing and organised crime 3.2.1 Criminal intelligence system - phase II 2.00 3.2.2 Preventing and combating money laundering 1.00 3.3 Integrated Border Management 3.3.1 Continued support to the Border Sanitary Inspection 0.50 3.3.2 Continued support to the phytosanitary inspection system 0.85 3.3.3 National border management information system – phase 2 2.00 3.3.4 Continued support and capacity building for the Border Police 0.50 Directorate 3.3.5 Capacity Building in the area of illegal migration 1.15 4. Administrative Capacity Building 11.80 4.1. Public Administration Reform 4.1.1 Capacity Strengthening for Administrative Decentralisation 1.50 4.1.2 Further support to the Reform of Public Administration and 2.00 Implementation of the Civil Service Reform Programme 4.1.3 Further support to the Government of Croatia in Co-ordination 0.50 and Monitoring of EU Assistance 4.1.4 Further support to the capacity building of selected Croatian 2.00 institutions 4.2 National, Regional and Local 4.2.1 Support to national development planning 2.00 Development 4.2.2 Border region co-operation 1.00 4.3 Public Finance 4.3.1 Strengthening the external oversight of budget execution 2.00 4.3.2 Development of methodology for production of key public 0.80 fi nance statistics

30 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

5. Environment and Natural Resources 3.70 5.1 Harmonisation of Croatian water management legislation with the EU water acquis 0.80 5.2 Environmental impact assessment of development strategies 1.00 5.3 Implementation of Environmental Impact Assessment guidelines and training 0.70 5.4 Promoting access to information and public participation in environmental matters in line with the Aarhus 0.30 convention 5.5 Support to NGOs active in the ﬁ eld of the environment 0.20 5.6 Assessment of wind and solar energy resources in a Croatian pilot region 0.70 TOTAL 62.00

The Financing Agreement for CARDS 2003 between the Croatian Government and European Commission was signed on 2 September 2003.

Table 9. List of projects under the CARDS National Programme – 2004

CARDS 2004 National Programme € million 1. Democratic Stabilisation 17.50 1.1. Sustainable Development in Areas of Special State Concern 14.00 1.2. Civil Society Development 3.50 2. Economic and Social Development 17.75 2.1. Further capacity building in the area of agriculture, live animals and food products 1.50 2.2. Further Capacity Building in the Area of Consumer Protection 1.25 2.3. Development of national metrology, standardisation, conformity assessment and accreditation system 2.00 2.4. Support to the cadastre and land registry reform – phase 2 4.50 2.5. Improving information of the Croatian business community 1.50 2.6. Adult learning 1.50 2.7. Local Partnership for Employment – phase 2 1.50 2.8. TEMPUS III 4.00 3. Justice and Home Affairs 21.85 3.1. Improving Court and Case Management at the High Misdemeanour Court and Selected Misdemeanour Courts 2.50 3.2. Support to More Effi cient, Effective and Modern Operation and Functioning of the Administrative Court of the 1.00 Republic of Croatia 3.3. Improving Access to Justice by Strengthening the Legal Aid System in Croatia. 1.00 3.4. Combating Traffi cking in Human Beings 1.00 3.5. Strengthening Capacity to Combat Drugs Traffi cking and Drugs Abuse 1.00 3.6 Combating Traffi cking in Firearms, Ammunition and Explosives 1.40 3.7. Reform of Asylum - phase 2 1.20 3.8. Capacity Strengthening of the Veterinary Border Inspection 0.75 3.9. Modernisation of State Border Surveillance 8.00 3.10. Border Region Co-operation 4.00 4. Administrative Capacity Building 15.10 4.1. Strengthening the Taxation System in Croatia 1.50 4.2. Capacity Building and Project Preparation Facility 6.60 4.3. Capacity Building for the Croatian Telecommunication Agency 1.00 4.4. Capacity Building for Managing Funds for Regional Development 3.00 4.5. Strengthening Public Internal Financial Control Structure 1.50 4.6. Modernisation of the Customs Administration in view of preparing for the Integrated Tariff Management System 1.50 5. Environment and Natural Resources 3.80 5.1. Support for the Further Approximation of Croatian Legislation with the Environmental Acquis 2.10 5.2. Capacity Building and Development of Guidelines for the Implementation of the Water Framework Directive 1.20 5.3. Approximation of EU Renewable Energy Legislation and Energy Effi ciency Labeling 0.50 TOTAL 76.00

The Financing Agreement for CARDS 2004 between the Croatian Government and the European Commission was signed on 29 November 2004, and the amendments thereof on 4 February 2005. 31 European Funds for Croatian Projects

Table 10. List of projects under the CARDS Regional Programme – 2001

CARDS 2001 Regional Programme EUR million 1. Justice and Home Affairs 4.20 1.1. Preparation of the Justice and Home Affairs Situation Report 1.50 1.2. Regional Police Co-operation 1.40 1.3. Regional Justice and Police Training 1.30 2. Regional Infrastructure Development and Integrated Border Management 3.00 2.1. Infrastructure Project Preparation Facility 3.00 3. Strengthening Public Administration 6.00 3.1. Public Administration Reform 3.00 3.2. Statistics – Regional EUROSTAT Programme 2.50 3.3. Co-operation with the European Environment Agency 0.50 4. Democratic Stabilisation 0.80 4.1. Media – SENSE 0.30 4.2. Regional University Network 0.50 TOTAL 14.00

The Croatian Government approved the implementation of CARDS 2001 regional programme on 7 March 2001.

Table 11. List of projects under the CARDS Regional Programme – 2002

CARDS 2002 Regional Programme EUR million 1. Integrated Border Management 1.00 1.1. Further Development and Co-ordination of Integrated Border Management Strategies 1.00 2. Institution Building Facility for the Stabilisation and Association Process 19.4 2.1. General Support Facility 3.90 2.2. Industrial and Intellectual Property Rights 2.00 2.3. Quality Infrastructure 1.50 2.4. Regional Co-operation among Judicial, Police and other Law Enforcement Agencies 8.00 2.5. Continuation of supporting activities to the Regional Environmental Reconstruction Programme 2.00 2.6. Capacity Strengthening in Balkan Countries in Reporting on Environmental Protection Issues and Develop- 2.00 ment of the EIONNET Network 3. Democratic Stabilisation 7.60 3.1. Democratic Stabilisation 7.60 4. Regional Infrastructure 14.00 4.1. Support for Environmental Investments in the Danube River Basin 4.00 4.2. Development and Implementation of the Action Plan for the Regional Natural Gas Market in South East 1.80 Europe 4.3. Development of the Municipal and Financial Sector: resources for ﬁ nancing municipalities and cities in the 1.70 areas of transport and the environment 4.4. Preparation of Energy Network Projects 1.50 4.5. Aviation Safety and Air Trafﬁ c Control 5.00 5. Reserve 1.50 TOTAL 43.50

The Croatian Government approved the CARDS 2002 regional programme on 16 January 2003.

32 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Table 12. List of projects under the CARDS Regional Programme – 2003

CARDS 2003 Regional Programme EUR million 1. Integrated Border Management 1.00 1.1. Further Development of Integrated Border Management Strategies and Action Plans 1.00 2. Institutional Capacity Building 21.80 2.1. Further Support to General Support Facility 1.25 2.2. Trade related support facility 1.25 2.3. SIGMA III 2.00 2.4. Social Institutions Support Project 2.00 2.5. Institutional Capacity Building for Cross Border Cooperation 2.00 2.6. ”Into Europe“ Programme 1.00 2.7. Capacity building for business organisations 2.00 2.8. Regional police and judicial co-operation 5.00 2.9. Regional statistical co-operation 3.00 2.10. Pilot river basin plan for Sava River Basin Project 2.30 3. Democratic Stabilisation 5.00 3.1. Regional Media Support Programme 1.00 3.2. ”Network to Network“ Programme 1.00 3.3. Support to Return of Refugees 0.50 3.4. Local Civil Society Development Programme 2.50 4. Regional Infrastructure 3.70 4.1. Environment: project preparation facility 1.80 4.2. Regional Transport Observatory 1.90 TOTAL 31.50

Table 13. List of projects under the CARDS Regional Programme – 2004

CARDS 2004 Regional Programme EUR million Cross Border Cooperation 15.00 CADSES 1.60 Italy/Adriatic 2.00 Italy/Albania 1.00 Greece/FYROM 1.80 Greece/Albania 2.20 Hungary/Serbia and Montenegro 1.00 Bulgaria/Serbia and Montenegro 1.00 Bulgaria/ FYROM 1.00 Romania/Serbia and Montenegro 1.40 Slovenia/Hungary/Croatia 2.00 TOTAL 15.00

33 European Funds for Croatian Projects

Table 14. List of projects under the CARDS Regional Programme – 2005

CARDS 2005 Regional Programme EUR million 1. Institutional Building 13.50 1.1. Administrative capacity building including acquis approximation – TAIEX 6.00 1.2. Public administration reform - SIGMA 4.00 1.3. School of public administration 1.00 1.4. Community Agencies 2.50 2. Justice and Home Affairs 2.20 2.1. Support to the SECI Centre 1.00 2.2. Law enforcement cooperation units 1.20 3. Cross Border Cooperation 17.20 3.1. Neighbourhood Programmes 12.20 3.2. Cross Border Cooperation within the Stabilization and Association Process 5.00 4. Private Sector Development 3.00 4.1. Investment promotion 2.00 4.2. Support to business, trade, investment promotion organizations/ agencies 1.00 5. Infrastructure Development 12.00 5.1. Infrastructure project preparation facility 10.00 5.2. Environment 2.00 TOTAL 47.90

Table 15. List of projects under the CARDS Regional Programme – 2006

CARDS 2006 Regional Programme EUR million 1. Institutional Building 5.90 1.1. Administrative capacity building including acquis approximation – TAIEX 2.40 1.2. Public administration reform - SIGMA 2.00 1.3. Regional school of public administration ReSPA 1.50 2. Justice and Home Affairs 2.50 2.1. Regional judicial cooperation (Law enforcement cooperation units) 1.50 2.2. Monitoring 1.00 3. Cross Border Cooperation and Civil Society 11.90 3.1. SAP Cross Border Cooperation 7.90 3.2. Civil society dialog 4.00 4. Private Sector Development 1.00 4.1. Support to business, trade, investment promotion organizations and agencies (quality infrastructure) 1.00 5. Infrastructure Development 10.50 5.1. Project preparation facility (PPF) 6.00 5.2. Support to the Energy Community Secretariat 2.50 5.3. Support to the SEETO Secretariat 1.00 5.4. Technical assistance to implementation of the ECAA Agreement 1.00 TOTAL 31.80

34 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Table 16. List of projects under the PHARE National Programme – 2005

Phare National Total No. Benefi ciary institution Project title Funding Cofi nancing (in EURO) (in EURO) (in EURO) 1 Ministry of Justice Enhancement of Mediation as and 1.112.000 32.000 1.144.000 Alternative to Court-Based Dispute Settlement 2 Ministry of Justice Support to the Judicial Academy 1.200.000 0 1.200.000 of Croatia: Developing a court- integrated education system for court apprentices 3Offi ce for National Minorities Roma Support Project 1.300.000 167.000 1.467.000 4 State Geodetic Directorate and Modernization and Capacity 5.165.000 361.158 5.526.158 Ministry of Justice Building of integrated land administration system in Croatia 5 State Inspectorate Market Surveillance System in the 1.300.000 75.000 1.375.000 Field of Technical Products 6 Croatian Competition Agency Strengthening of Capacity to 1.800.000 100.000 1.900.000 Manage and Enforce the EU Competition and State Aid Policies 7 Tax Administration Ministry of Assistance to the Croatian Tax 3.000.000 0 3.000.000 Finance Administration in the development activities proceeding from the EU Fiscal Blueprints 8 Croatian Custom Directorate Interoperability of IT systems with 7.075.000 1.625.000 8.700.000 Ministry of Finance the EU Customs Systems 9 Ministry of Agriculture, Forestry Institutional capacity Building and 4.045.000 15.000 4.060.000 and Water Management Support for Implementation of SAPARD/IPARD Programme 10 Ministry of Agriculture, Forestry Support to the Republic of 4.500.000 1.313.750 5.813.750 and Water Management Croatia in the Preparation and Implementation of the Strategy to Develop the Fisheries Sector within the Context of Alignment and Enforcement of the EC Acquis Comprising the CFP 11 Ministry of the Sea, Tourism, Maritime Safety: Enforcement 2.150.000 400.000 2.550.000 Transport and Development of Administrative Capacity - Monitoring and Management of Vessels 12 Croatian Employment Service Active Employment Mesaures 2.000.000 250.000 2.250.000 for Groups Threatened by Social Exclusion 13 Ministry of Economy, Labour and Capacity Building of the SME 2.500.000 0 2.500.000 Entrepreneurship Support Structure and Alignment of Policy and Actions to the SME Charter and to the Chapter of Acquis Communataire on SME 14 Ministry of Science, Education and TEMPUS 5.000.000 0 5.000.000 Sports 15 Central Bureau of Statistics Technical Assistance to the 4.660.000 140.000 4.800.000 Central Bureau of Statistics of the RoC in the Adoption of the Acquis 16 Ministry of Environmental Enhanced Environmental 2.060.000 196.700 2.256.700 Protection, Physical Planning and Inspection for Enforcement of New Construction Environmental Legislation 17 State Institute for Protection of Implementation of NATURA 2000 2.500.000 100.000 2.600.000 Nature and Ministry of Culture in Croatia 18 Ministry of Interior and Police Strengthening Human Resources 1.700.000 87.500 1.787.500 Academy Management, Education and Training System

35 European Funds for Croatian Projects

Phare National Total No. Beneﬁ ciary institution Project title Funding Coﬁ nancing (in EURO) (in EURO) (in EURO) 19 Ministry of Interior Preparation for the Implementation 3.300.000 770.000 4.070.000 of the Schengen Acquis 20 Ministry of Foreign Affairs and Capacity Building and Project 4.515.000 0 4.515.000 European Integration Preparation Facility 21 Ministry of Foreign Affairs and Participation of the Republic 3.618.000 5.199.250 8.817.250 European Integration of Croatia in Community Programmes 22 Ministry of Foreign Affairs and Unalocated Institutional Buiding 2.000.000 0 2.000.000 European Integration 23 Ministry of Regional Development, Business Related Infrastructure 5.000.000 1.660.000 6.660.000 Forestry and Water Management Grant Scheme under ESC 2005 (former Ministry of Sea, Tourism, Transport and Development) TOTAL 71.500.000,00 12.492.358,00 83.992.358,00

The Financing Agreement for PHARE 2005 between the Croatian Government and the European Commission was signed on 17 May 2006.

36 FINANCIAL COOPERATION BETWEEN EUROPEAN UNION AND CROATIA – OBNOVA, CARDS, PHARE, ISPA AND SAPARD

Table 17. List of projects under the PHARE National Programme – 2006

Phare National Total No. Benefi ciary institutions Project title Funding Cofi nancing (in EURO) (in EURO) (in EURO) 1 Supreme Court of Republic of Harmonization and Publication of 1.560.000 190.000 1.750.000 Croatia Case Law 2 Ministry of Justice Support to Court Administration 3.000.000 0 3.000.000 and Case Management Improvement 3 "Central State Administrative Enhancing Capacity of Croatian 2.525.000 175.000 2.700.000 Offi ce for e-Croatia (lead project State and Public Administration for benefi ciary) Providing User Oriented Service Central State Administrative Offi ce for Public Administration, Ministry of Justice,Financial Agency Ministry of Justice and other relevant state admin" 4 Governmental Offi ce for Minorities Roma Support Project – Multi 2.500.000 1.071.429 3.571.429 annual fi che PHARE 2005-2006 5 Governmental Offi ce for NGOs Enabling of Civil Society Sector 2.400.000 600.000 3.000.000 for Active Contribution in the Pre- accession Process 6 Ministry of Finance, State Improving Budget Processes for 3.071.250 1.023.750 4.095.000 Treasury Effective Financial Management 7 State Intellectual Property Offi ce Strengthening of the capacity to 1.472.500 157.500 1.630.000 (SIPO), Ministry of Justice (MJ), enforce the intellectual property Ministry of Interior Affairs (MIA), rights in Croatia Ministry of Finance – Customs Administrations (MFCA), State Insp. 8 Ministry of Finance, Tax Strengthening and Enhancement 3.000.000 0 3.000.000 Administration of Croatian Tax Administration IT Function to achieve the EU Standards in the VAT Field 9 Ministry of Finance, Customs Integration of the Croatian 5.275.000 1.175.000 6.450.000 Administration Customs Information Systems with the EU Customs Information Systems 10 Ministry of Sea, Tourism, Transport Restructuring and Development of 2.800.000 200.000 3.000.000 and Development Croatian Railway system in frame of EU legislation 11 Ministry of Sea, Tourism, Transport Maritime Safety: Enforcement 4.725.000 1.375.000 6.100.000 and Development of Administrative Capacity- Monitoring and Management of Vessels PHASE 2 12 Central Bureau of Statistics Major revision of classifi cations 2.000.000 38.000 2.038.000 and upgrading of subject-matter statistics 13 Ministry of Science, Education and Tempus 4.500.000 4.500.000 Sports 14 Ministry of Environmental Establishment of Air Quality 2.387.000 563.000 2.950.000 Protection, Physical Planning and Monitoring and Management Construction System 15 Ministry of Environmental Development of hazardous wast 2.425.000 75.000 2.500.000 Protection, Physical Planning and management system including the Construction identifi cation and management of "hot spot sites" in Croatia 16 Ministry of the Interior Blue border surveillance 1.292.500 97.500 1.390.000 17 Central Offi ce for Development Development of Institutional 7.000.000 0 7.000.000 Strategy Capacity for the Management of EU Structural Funds Post - Accession 18 Various line ministries Community Programmes 4.500.000 0 4.500.000

37 European Funds for Croatian Projects

Phare National Total No. Beneﬁ ciary institutions Project title Funding Coﬁ nancing (in EURO) (in EURO) (in EURO) 19 CODEF and Various line ministries Project Preparation Facility and 2.628.750 0 2.628.750 Unallocated Institution Building Envelope 20 Ministry of Economy, Labour and Support for increasing the 2.000.000 700.000 2.700.000 Entrepreneurship competitiveness and exports of Croatian SME-s TOTAL 61.062.000 7.441.179 68.503.179

The Financing Agreement for PHARE 2006 between the Croatian Government and the European Commission was signed on 31 January 2007.

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● Detailed overview of the Instrument for Pre-accession Assistance ● Detailed overview of the Operational Programmes in Croatia.

The Instrument for Pre-Accession Assistance (IPA) The political path of the Croatian accession process was set up for the period 2007 – 2013 to facilitate has always been accompanied by appropriate the entry of the Candidate Countries, like Croatia, fi nancial instruments, in order to assist the country as well as Potential Candidates into the European with timely and effi cient fulfi lment of accession Union. The programme in Croatia replaces the priorities. By this process, the European Commission CARDS programme and the pre-accession is getting the most out of previous enlargement instruments PHARE, ISPA and SAPARD. experiences and incorporates lessons learnt in their future actions with the aim of minimizing past IPA is available to Croatia from 2007 until accession shortcomings. Figure 1 shows the evolution of the to the EU. pre-accession fi nancial instruments available for Croatia.

Figure 1. The evolution of ﬁ nancial assistance provided to Croatia

CARDS 2000-2004/2006

PHARE and ISPA + SAPARD 2005-2006

I P A 2007 -

STRUCTURAL FUNDS and COHESION FUND after EU accession Agricultural and rural development funds

In this regard, the European Commission For example, in Croatia the responsible public developed a new pre-accession instrument called institutions already operate under a decentralised Instrument for Pre-Accession Assistance (IPA). management system and have developed This instrument rationalises pre-accession aid and autonomous programming and management streamlines actions and efforts within the overall capacities while this is still not the case with potential process and focuses on what will soon be expected candidates for EU accession. from Croatia as a Member State13.

As a new instrument IPA also makes a clear To kknownow more differentiation between the two groups of benefi ciary countries, namely Candidate Countries and Potential IPA provides focussedfocussed pre-accession fi nancial aid to Candidate Countries. Why? For Candidate Countries the ffollowingollowing 2 groupsgroups ofof countries:countries: like Croatia, part of the IPA funding is designated to preparing public authorities for the management of □ CandidateCandidate CountriesCountries - Croatia,Croatia, TurkeyTurkey and the EU Funds after accession, which for Potential Macedonia.Macedonia. Candidates will be a necessity in the longer □ Potential Candidate Countries - Albania, Bosnia run. There also exists a different administrative, and HerzeHerzegovina,govina, Montenegro,Montenegro, SerbiaSerbia and programming and management capacity in the two Kosovo.Kosovo. groups of countries. This fi nancial assistance is intended to help these countriescountries to introduce the necessarynecessary political, economiceconomic and institutional reforms in line with EU standards.standards. 13 More about EU funds for Member States is provided in Chapter IV 40 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

IPA PROGRAMME FRAMEWORK – LEGAL, PROGRAMMING AND INSTITUTIONAL ASPECTS

In essence, IPA support is envisaged to help IPA has been established by Council Regulation Croatia implement the reforms needed to become a 1085/200614 that sets the overall framework for the Member State of the European Union but with clear assistance and general principles of assistance. perspective and emphasis on building experience More detailed implementation rules are outlined in and systems to be able to handle future EU funds, Regulation 718/200715. much larger in scope and scale. The major objective of IPA is to channel all EU pre-accession assistance In addition, the fi nancial framework of the programme for Croatia towards achieving the priorities stated in is set by the European Commission in the Multi- i) the Accession Partnership document, ii) the annual Annual Indicative Financial Framework (MIFF) and European Commission Progress report for Croatia Multi-Annual Indicative Planning Document (MIPD). on progress made in the process of preparing for MIFF contains data on fi nancial distribution across EU accession and iii) the annually updated National benefi ciary countries and the fi ve components of IPA Programme for Integration into the EU. and the Multi-Annual Indicative Planning Document (MIPD), represents policy priorities for each country across various sectors (see Figure 2).

Figure 2. A 3-level implementation framework of IPA

ENLARGEMENT PACKAGE, Including Multi-annual Indicative Financial Framework (MIFF) divided by country and IPA components

Multi-annual Indicative Planning Document (MIPD) by country for all relevant components

Comp I Comp II Comp III Comp IV Comp V

National 8 3 1 1 or Operational Operational Rural Operational Regional Programmes Programmes Development Programme Projects 2007-2013 2007 - 2009 Plan

Hungary-Croatia Individual Slovenia – Croatia Operational Agriculture projects ﬁ ches Adriatic CBC III a)Transport Programme and Rural for each Croatia - Bosnia III b) Environment “Human Development ﬁ nancial year and Herzegovina Resource III c) Regional Plan – 2007, 2008, Croatia – Development” Competitiveness 2007-2013 2009. Montenegro 2007-2009 Croatia – Serbia South East Europe Mediterranean

14 http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_210/l_21020060731en00820093.pdf 15 http://eur-lex.europa.eu/LexUriServ/site/en/oj/2007/l_170/l_17020070629en00010066.pdf 41 European Funds for Croatian Projects

IPA assistance is provided in line with country MIPD through multi-annual and annual programmes depending on the programme component, representing a rather new approach in terms of EU support for Croatia. The approach allows for better planning of resources and the pursuit of stronger impact towards modernisation of the areas covered by Union assistance. By its nature IPA is a multi- annual instrument, but is reviewed annually and the amounts per priority sector are also planned on annual basis.

The novelty about IPA is that it is a type of “small- scale structural funds“, thus being a preparation instrument for the use of the European Union’s Structural instruments, which will be available to Croatia once it becomes an EU Member State.

Following the priorities identiﬁ ed an appropriate structure is designated out of existing public administrative bodies for implementation of the programme.

The new institutional set-up is based on 2 key levels of responsibility: ● The Central Office for Development Strategy and Coordination of EU Funds, CODEF, is the body entrusted to coordinate the overall process of preparation and coordination as regards the resources’ utilisation under IPA in Croatia. The Ministry of Finance is responsible for the overall financial management of IPA, ● Sectorial line - Ministries and state bodies in charge of the management and implementation of different IPA components; these bodies are known as Operating Structures. In almost all cases Operating Structures, i.e. responsible ministries, have delegated their tasks (but not their responsibility) for various parts of programme implementation.

Of course, the institutional structure is tailored to accommodate the implementation of deﬁ ned priorities and the following Figure 3 provides an overview of IPA institutional structure in Croatia, according to Government Regulations and Decisions16.

16 Regulation on Responsible Institutions designating for management of IPA (OG 18/07, 82/07, 34/08); Decision on nominating persons responsible for management of IPA (OG 18/07, 82/07, 24/08, 34/08) 42 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT Develoment Develoment Development Development State Secretary IPA Component V IPA Assistant Minister Directorate for Rural Directorate for Rural Fisheries and Rural Fisheries and Rural Rural Development Ministry of Agriculture, Ministry of Ministry of Agriculture, Ministry of Coordination Implementation Director Training Education Ministry of Directorate Vocational Agency for for Secondary Education and State Secretary and Sports (MSES) Science, Education Legend: Directorate for Social Welfare State Secretary Ministry of Health and Social Welfare IPA Component IV IPA Division Director Audit Authority Head of Division Ministry of Finance Human Resources Development Ministry of Finance Independant department Independant Internal Audit Independant Internal for audit of EU funds within Market Croatian Employment Service Economy, Economy, Ministry of Labour and Directorate for State Secretary Entrepreneurship Labour and Labour and State Secretary Entrepreneurship IPA Component III c IPA State Secretary, MSES State Secretary, Ministry of Economy, Ministry of Economy, State Secretary, MRDFWM State Secretary, Regional Development programmes and projects and implementation of EU Department for preparation Regional Competitiveness National Competent National Fund Head of Division State Secretary Minister of Finance Ministry of Finance Ministry of Finance Accrediting Officer Authorising Officer Director Construction Planning and Environmental Efficiency Fund State Secretary Protection, Physical Directorate for Strategic Protection and Energy Environmental Protection Ministry of Environmental and Integration Process in Environment IPA Component III b IPA Regional Development Manager Management Deputy General State Secretary Croatian Waters Department for Water Department for Water Development, Forestry and Water Management and Water Ministry of the Regional Figure 3. Institutional structure for management of IPA in Croatia Figure 3. Institutional structure for management of IPA Cohesion Central Office for Department for EU of Economic and Social Programmes in the Field Strategic Co-ordinator Deputy State Secretary for Components III and IV Development Strategy and Co-ordination of EU Funds Transport Infrastructure Ministry of the Infrastructure State Secretary President of the National IPA Component III a IPA Sea, Transport and Sea, Transport Management Board Croatian Railways - Infrastructural Projects Regional Development Directorate for Strategic State Secretary Central Office for IPA Co-ordinator IPA Development Strategy and Co-ordination of EU Funds (MRDFWM) Co-operation Cross-border State Secretary IPA Component II IPA Regional Development Development, Forestry Directorate for Integrated and Water Management and Water Ministry of the Regional ce for Development Strategy and Co-ordination of EU Funds fi Director Accession Central Office for Central Finance and Contracting Agency Central Finance and Contracting IPA Component I IPA Department for EU Source: Central Of Programmes in the Field Transition Assistance Transition Deputy State Secretary of Capacity Building for EU Development Strategy and Co-ordination of EU Funds and Institution Building 43 European Funds for Croatian Projects

SCOPE AND OBJECTIVES OF IPA

IPA funding is channelled in ﬁ ve components. What is economic and social cohesion? Each component covers one or more policy areas: This means balanced and sustainable development, Component I. Transition Assistance and Institution reducing structural disparities between regions and Building – IPA TAIB countries and promoting equal opportunities for work and living for all individuals. In practical terms This component represents a kind of follow-up of the it is achieved by means of a variety of ﬁ nancing activities under the PHARE programme, excluding operations/ initiatives supported by EU funding its economic and social cohesion part. instruments like IPA, Structural Funds and others.

What is institution building? Component IV. Human Resources Development – IPA HRD An important part of the EU assistance is strengthening institutional capacity, or “institution IPA-HRD, being a precursor to the European Social building”. It involves the adaptation and Fund, will ﬁ nance projects mainly in the areas of strengthening of the democratic institutions, the education, employment and social cohesion. public administration and the organizations which have a responsibility for implementing and enforcing Component V. Rural Development – IPA-Rural EU legislation. Development

The integration process is not just a question of This component builds upon the SAPARD approximating Candidate Country’s legislation to programme and ensures fi nancial resources for that of the Union (the acquis). It should also ensure projects dealing with implementation of the acquis the effective and effi cient implementation of the communautaire in the area of agriculture, as well as legal texts, meaning activities which strengthen the those that promote development in rural areas. knowledge, abilities, skills and behaviour of civil servants, public offi cials, professionals and actors The following diagram presents the evolution of from the non-governmental and private sector the programmes from CARDS, through Phare, that enables them to perform effectively. Advice ISPA, SAPARD, various IPA components and future on implementing the acquis is often provided via Structural Funds (ESF, ERDF), Cohesion Fund, twinning arrangements. European Agricultural Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF), based on the eligible scope of action and mechanism Component II. Cross-Border Cooperation – IPA CBC of operation.

Funding for this component will encompass joint cross-border projects which will be implemented by Croatia, on one side, and other IPA beneﬁ ciary countries or Member States, on the other side.

Component III. Regional Development – IPA-RD

IPA-Regional Development represents a continuation of the ISPA programme and the economic and social cohesion part of the PHARE program. It provides ﬁ nancial resources for: ● large scale infrastructure projects in the area of transport and environment, ● projects promoting regional competitiveness and balanced regional development.

This component of IPA is a precursor for the use of the European Fund for Regional Development and Cohesion Fund, upon accession.

44 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Figure 4. Links between various Pre-accession programmes and Structural instruments

CARDS

Pre-accession programmes

PHARE ISPA SAPARD

Component I. Component II. Component III. Component IV. Component V. Transition Assistance Cross-Border Regional Human resources Rural & Cooperation Development Development Development Institution Building

ESF ERDF COHESION ESF EAFRD ERDF FUND EFF CF EAFRD EFF Instruments of Cohesion, Agricultural and Fisheries Policy

FROM PROGRAMMING TO IMPLEMENTATION OF IPA

The process of programming is the initial step Phase 1. Formulating the Strategic Framework for before an EU programme can become operational. IPA In general each EU fi nancial instrument, including the external assistance programmes like IPA, goes First of all, the programming of funds necessitates through this process. As mentioned in relation to developing a framework of strategic documents other programmes – CARDS and pre-accession which formulate and elaborate in detail the identifi ed programmes, IPA is also determined by multi- national priority sectors and actions which need annual strategic documents which establish the funding. The IPA fi nancial assistance for Croatia is priorities to be achieved. In addition, unlike the accession driven and actions stem from priorities other previous pre-accession programmes, IPA identifi ed in the Accession Partnership document introduces a programming approach where multi- and in the enlargement strategy paper and progress annual programmes are delivered – so called reports that form the so called enlargement Operational Programmes, similar to the fi nancial package17. instruments that are to be used after accession. This is a characteristics of the new instrument. Additionally, a Strategic Development Framework 2006-2013 for Croatia, and different sectoral strategies at national level are also elaborated, Main phases of IPA programming forming a key part of the strategic framework which process cover: lays the grounds for IPA. Since Croatia is preparing to become an EU member, the priorities regarding the Phase 1. Formulating the Strategic Framework. country’s development are completely in line with EU strategic policy priorities, e.g. social and economic Phase 2. Operationalizing the Strategy – developing cohesion, sustainable development, research and specifi c programming and planning documents innovation, rural development etc. Next, based as the basis for IPA implementation, defi ning IPA on the fundamental EU and national strategic structure and operational programmes, specifying documents, further IPA-specifi c programming and project parameters through project fi ches or planning documents are elaborated to facilitate its individual measures. practical implementation. Phase 3. Announcing tenders and calls for project proposals. 17 http://ec.europa.eu/enlargement/key_documents/reports_ nov_2007_en.htm 45 European Funds for Croatian Projects

Main documents include: For other IPA components, which function on a ● An annual programme for Component I more “structural instruments” type of activities, and a multi-annual programme for other the operationalisation means preparation of the components are designed jointly by the Operational programmes down to the level of European Commission and Croatian authorities. individual measures. They outline how the IPA structure is defined, including thematic components, operational programmes and detailed thematic priorities. What is an Operational Programme (OP)? ● An umbrella strategic document called the Strategic Coherence Framework In the context of IPA, this is a multi-annual document 2007-201318 gives the framework for the drafted by the relevant state institution in the implementation of components III and IV of IPA benefi ciary country and approved by the European which prepare Croatia for the management Commission. The OP defi nes in detail the priority and implementation of the EU Structural Funds areas and the corresponding measures and required after accession. Moreover, those priorities resources. which have been developed in line with the The OP priorities should be based on relevant EU general guidelines of the EU Lisbon Strategy. policy document, national strategic documents, relevant socio-economic analysis and partnership ● Interventions in the area of rural development consultation process. under Component V are regulated by a special The OP is legally binding document adopted by document entitled “IPARD Program 2007- European Commission decision. 2013: Agriculture and Rural Development Programme”19 which Croatia has developed in cooperation with the European Commission Phase 3. Announcing tenders and calls for project sectoral services. proposals: from institutions to society and people ● Additional programming documents under Component II are elaborated for the IPA IPA opportunities are open for all interested Cross-Border Cooperation programmes20 organizations, such as regional and local authorities, with different partner countries. private companies, NGOs, academic institutions, etc. In some cases invitations for tenders and proposals For the coordination of IPA programming and overall are only open for organizations from Croatia, in implementation in Croatia the main responsibility other cases it is possible that organizations from lies with the Central Offi ce for Development Strategy other European countries are allowed to take part, and Coordination of EU Funds (CODEF)21. especially when it comes to invitations for proposals Further information about IPA programming, can be with cross-border cooperation or for tenders involving found at the DG Enlargement web site22. technical assistance, exchange of experiences or best practices.

Phase 2. Operationalizing the strategy: from As mentioned before, designated sectoral ministries strategic to operational level shown in Figure 4 have the overall responsibility for OP management but may decide to delegate some For component I, this activity is known by experts of their tasks to Implementing Agencies. Usually, as a project identifi cation and preparation exercise. those tasks are the tendering and contracting of It is carried out by the committed state institutions projects or measures under different priorities in the with support of the Central Offi ce for Development Operational Programmes. Strategy and Coordination of EU Funds. To put it simply, it means developing project ideas into IPA components are implemented through various projects and preparing the so called “project projects. In line with the project document and fi ches”. Operational Programme measure, some of them Each project fi che defi nes the main project are planned to be implemented through invitations parameters, e.g. objectives to be achieved, expected for proposals, others are foreseen to follow results and impact, way of implementation, planned procurement procedures. More information about resources, involved institutions, etc. procurement procedures is provided in Chapter V.

18 www.strategija.hr/lgs.axd?t=16&id=473 19 www.strategija.hr/lgs.axd?t=16&id=515 20 http://www.strategija.hr/Default.aspx?sec=140 21 http://www.strategija.hr/Default.aspx?sec=108 22 http://ec.europa.eu/enlargement/how-does-it-work/ﬁ nancial-assistance/programming-ipa_en.htm 46 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

WHAT IS PLANNED WITHIN EACH IPA Component II: COMPONENT IN CROATIA? Cross-Border Cooperation

Component II - Cross-Border Cooperation (IPA- IPA Component I: CBC) - supports programmes related to cross-border Transition Assistance and Institution Building cooperation between the Croatian border regions and the neighbouring EU countries. Additionally, funds will be allocated to cross-border cooperation Component I – Transition Assistance and programmes with Potential Candidate Countries. Institution Building (IPA-TAIB) - involves institution In more particular terms, Croatia participates in the building measures and associated investment in following IPA CBC programmes: Croatia with a view to meeting the criteria for EU accession. Efforts will be mainly focused towards full ● Hungary – Croatia CBC OP, 2007 – 2013 alignment with the EU acquis. The priority projects are ● Slovenia – Croatia CBC OP, 2007 – 2013 decided annually within the Annual Action Plan and ● Adriatic CBC OP, 2007 – 2013 formally adopted in the framework of the Financing ● Croatia – Bosnia and Herzegovina CBC OP, Agreement to be signed between the European 2007 – 2013 Commission and the Croatian Government. As with ● Croatia – Montenegro CBC OP, 2007 – 2013 the CARDS and Phare programmes IPA TAIB is ● Croatia – Serbia CBC OP, 2007 – 2013 programmed within an agreed project fi che format. It will also fund the participation of Croatian local IPA TAIB is not the main but rather a complementary authorities and organisations in Structural Funds' tool to support the capacity building needs of the in the following trans-national co–operation institutional structures in Croatia which will be in programmes: charge of the management, implementation, coordination and monitoring of EU structural funding. ● South East Europe OP 2007 – 2013 This component is not supposed to channel funds ● Mediterranean OP 2007 – 2013 for projects in the fi eld of economic and social cohesion. THE HUNGARY-CROATIA CROSS In 2007, project proposals in the fi elds of energy, BORDER COOPERATION OPERATIONAL social policy and employment, agriculture, environment, judiciary etc. were agreed with the PROGRAMME, 2007 – 2013 European Commission. Through those projects, assistance is provided for alignment with EU standards and its implementation and enforcement The Hungary-Croatia IPA Cross-Border Co- in Croatia. Assistance generally, like in the majority operation Programme will be implemented within of CARDS and PHARE projects, takes the form of the 2007-2013 European Union fi nancial framework. technical assistance, twinning and supply of the The strategic document is based on a joint strategic equipment. planning effort of the Croatian and Hungarian parties, subject to the fi nal approval of the European Commission. Implementation of the IPA-TAIB

The overall responsibility for the implementation of the Eligible area TAIB Annual Action programme lies with the Central Offi ce for Development Strategy and Coordination The eligible area lies on the South-Western border of EU Funds but the offi ce closely cooperates with of Hungary and North-Eastern border of Croatia other public authorities and benefi ciaries of projects (see Map 1). The two countries are separated by on all aspects required for successful project the River Drava forming the greatest part of their management and implementation. common border. On the Croatian side, in addition to the border counties of Međjimurska, Koprivničko- For information about IPA tender opportunities under Križevačka, Virovitičko-Podravska and Osječko- IPA Component I refer to the web site of the Central Baranjska, four other counties have expressed their Finance and Contracting Agency23. interest in participating in the present programme with Hungary. Following a common decision the Counties of Varaždinska, Bjelovarsko-bilogorska, Požesko-slavonska and Vukovarsko-srijemska are eligible.

23 http://www.safu.hr/en/tenders 47 European Funds for Croatian Projects

Map 1. Eligible area for Hungary – Croatia CBC Operational Programme, 2007 - 201324

Priorities

The two countries put their strategic development priorities in a joint programming document. Based on their joint situation and SWOT analysis potential areas for fi nancial intervention have been identifi ed for the region. Three common priorities have been identifi ed, shown in Table 18:

Table 18. Priorities and measures of Hungary – Croatia CBC Operational Programme, 2007 - 2013

Priority 1 – Priority 2 – Co-operative Economy Priority 3 – Sustainable Environment and Intercommunity Human Technical Assistance and Tourism Resource Development

Measure 1.1. Measure 2.1. Measure 3.1. Sustainable and Attractive Environment Co-operative Economy Programme implementation, support and control activities

Measure 1.2. Measure 2.2. Measure 3.2. Sustainable Tourism in the Mura-Drava- Intercommunity Human Resources Information and publicity activities Danube River Area Development

Priority 1 - Sustainable Environment and Under this priority the following activities will be Tourism will foster environmental sustainability and eligible for ﬁ nancing: safety in the border region, as well as the complex ● Elaboration of a regional tourism product ecotourism development of the Mura-Drava-Danube plan, River Area and its immediate surroundings. As a ● Development of an infrastructure for active result a joint ecotourism product will be created on and ecotourism in the river border area, a the basis of the area’s sustainable rich natural and development of thematic routes of cultural cultural heritage. heritage,

24 Eligible area for Hungary – Croatia CBC Programme 2007 – 2013, major cities and road infrastructure (Source: Hungarian Central Statistical Ofﬁ ce(HCSO; Republic of Croatia - Central Bureau of Statistics, CROSTAT; ESRI

48 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Implementation aspect ● Promotion of the river area as a single touristic product, Common fi nancial resources available in the ● Private investment attraction. Programme will be used within a framework of an open call system. Implementation of the Programme The aim of Priority 2 Co-operative Economy and will be carried out in a joint structure through common Intercommunity Human Resource Development projects and joint decision making. is the facilitation of economic ties, including business contacts, cross-border employment opportunities and cross-border research, development and Who benefi ts from the CBC Programme? innovation activity. The priority will also promote the establishment of educational and cultural The regional and local authorities, schools, research connections, as well as bilingualism in the Hungarian- and educational institutions, private companies, Croatian border region. Measures in this priority will tourist organisations, nature protection institutions, support local actors who rebuild the severed ties in NGOs and people living in the eligible regions. the border region to create organic, coherent, and vibrant socioeconomic relations. Under this priority the following activities will be THE SLOVENIA-CROATIA CROSS- eligible for fi nancing: BORDER CO-OPERATION OPERATIONAL ● Cross-border business partner finding PROGRAMME, 2007-2013 ● Cross-border labour market mobility promotion services The Cross-border Co-operation Operational ● Joint research, development and innovation Programme Slovenia-Croatia 2007-2013 is a ● Joint local-regional planning, strategies development programme jointly designed by drawn up jointly by municipalities and/or Slovenia and Croatia to tackle common problems deconcentrated state bodies and exploit shared potentials. ● Joint cross-border education and other training projects between educational institutions The Operational Programme contains a development ● People to people activities (sports, cultural strategy and its implementation arrangements for events, gastronomic festivals) the eligible area (see Map 2) comprising NUTS level ● Bilingualism activities 3 regions along the Slovenian - Croatian border: Pomurska, Podravska, Savinjska, Spodnjeposavska, Priority 3 – Technical Assistance will ensure the Jugovzhodna Slovenija, Notranjsko-kraška, Obalno- successful operation of the programme and will kraška and Osrednjeslovenska regions in Slovenia contribute to an effective project generation, thus and Međimurje, Varaždin, Krapina-Zagorje, Zagreb, increasing the quality of projects funded by the Karlovac, Primorje-Gorski kotor, Istria and City of programme. Zagreb in Croatia.

Map 2. Eligible area for Slovenia – Croatia CBC Operational Programme, 2007 – 2013

49 European Funds for Croatian Projects

Priorities

The programme objective will be achieved by supporting two major priorities, shown in Figure 5:

Figure 5. Priorities and measures of Slovenia – Croatia CBC Operational Programme, 2007 - 2013

Economic and Social Sustainable Management Technical Assistance Development of Natural Resources Priorities

Tourism and rural Environmental protection development

Development of Preservation of entrepreneurship protected areas Measures

Social integration

The priority ‘Economic and Social Development’ Implementation aspect focuses on the support of entrepreneurship, as well as on the improvement of tourism, rural Projects will be selected via single invitations for development, and cultural and social exchanges. proposals covering the whole eligible area. All The ‘Sustainable Management of Natural Resources’ details about project preparation, submission and focuses on supporting cooperation in the fi eld of selection will be included in the application pack, the environment, natural resources protection and which will be a constituent part of the invitation for sustainable development, in particular protection of proposals. the environment and preservation and revitalization of natural assets of the cross-border area. Who benefi ts from the programme? The third priority Technical Assistance aims to support a prompt and smooth implementation of the Benefi ciaries of the priorities 1 and 2: Economic and Programme. social development and sustainable management of environment are non-profi t legal persons Horizontal themes of this programme are Human established by public or private law, belonging to Resources Development and Information Society, one of the following groups: and are to be integrated to a reasonable degree into every type of operation where appropriate. Both ● Regional and local public authorities; Human Resources Development and Information ● Public bodies and public equivalent bodies Society have to be understood as horizontal tools such as: (funds, institutions, agencies) to support the achievement of the objectives of the established by the state or a municipality, selected priorities. Human resources development research and development institutions, is related to the formal or non-formal type of education and training institutions, health care education or the training of those involved in the institutions, institutions for the protection of the project (partners, target groups). The programme natural and cultural heritage, local and regional stimulates the use of information technologies development agencies etc.; not only in business but also for the purposes of ● Non-governmental organisations such as management and protection of the environment, associations, foundations; preservation and revitalisation of nature and ● Status as a freelance art workers/freelance culture, as well as for setting up and implementing artists; coordination mechanisms. ● Chambers of commerce, agriculture, crafts and industry, clusters registered as nonprofit legal persons; 50 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

● Legal entities established by private law The beneﬁ ciaries of the priority technical assistance (societies) with non-profit status and are primarily institutions managing the programme. purpose of operating, such as local and regional development agencies registered as companies, local tourism organizations, training organizations etc.

THE ADRIATIC CROSS BORDER COOPERATION OPERATIONAL PROGRAMME, 2007 - 2013

The Adriatic CBC Operational Programme supports joint projects between Croatia and coastal regions of Italy, Slovenia, Greece and the Potential Candidate Countries along the Adriatic coast. The Operational Programme will be implemented within the 2007-2013 European Union ﬁ nancial framework.

The Operational Programme contains a development strategy and implementation arrangements for the eligible area (see Map 3 and Table 19).

Map 3. Eligible area for Adriatic CBC Operational Programme, 2007 – 2013

Table 19. The eligible regions for the ﬁ nancial support under the Adriatic CBC Operational Programme, 2007 - 2013

Italy Nuts 3 Pescara, Teramo, Chieti, Ferrara, Forlì-Cesena, Rimini,Ravenna, Trieste, Gorizia, Udine, Pesaro-Urbino, Ancona, Macerata, Ascoli Piceno, Campobasso, Foggia, Bari, Brindisi, Lecce, Venezia, Rovigo, Padova

Slovenia Nuts 3 Obalno-kraška

Greece Nuts 3 Kerkyra, Thesprotia

Croatia Equivalent Dubrovnik-Neretva, Istra;Lika-Senj; Primorje-Gorski kotar; Šibenik-Knin; Split-Dalmatia Nuts 3 areas and Zadar

Bosnia and Equivalent Bileća, Čapljina, Čitluk, Gacko, Grude, Jablanica, Konjic, Kupres, Livno, Ljubinje, Herzegovina Nuts 3 areas Ljubuški, Mostar, Neum, Nevesinje, Posušje, Prozor/Rama, Ravno, Široki Brijeg, Stolac, Berkovići, Tomislavgrad, Trebinje and Istočni Mostar

Montenegro Equivalent Bar, Budva, Cetinje, Danilovgrad, Herceg Novi, Kotor, Nikšić, Podgorica, Tivat, Ulcinj Nuts 3 areas

Albania Equivalent Fier, Durrës, Lezhë, Shkodër, Tiranë, Vlorë Nuts 3 areas

Serbia Whole territory (phasing out) 51 European Funds for Croatian Projects

Priorities

The countries have jointly identiﬁ ed three major priorities for implementation, shown in Table 20.

Table 20. Priorities and measures of Adriatic CBC Operational Programme, 2007 - 2013

Priority 1 – Economic, social and Measure 1.1. Research and Innovation institutional cooperation Measure 1.2. Financial Support for Innovative SMEs

Measure 1.3. Social, Health and Labour Networks

Measure 1.4. Institutional Cooperation

Priority 2 – Natural and cultural Measure 2.1. Protection and Enhancement of the Marine and Coastal Environment resources and risk management Measure 2.2. Natural and Cultural Resource Management and Prevention of Natural and Technological Risks

Measure 2.3. Energy Saving and Renewable Energy Resources

Measure 2.4. Sustainable Tourism

Priority 3 – Accessibility and Measure 3.1. Physical Infrastructure networks Measure 3.2. Sustainable Mobility Systems

Measure 3.3. Communication Networks

Priority 4 – Technical assistance Measure 4.1. Administration and implementation Measure 4.2. Information, publicity and evaluation

The general objective of the Priority 1 - Economic The Priority 2 - Natural and cultural resources social and institutional cooperation is to and risk prevention aims to promote, improve and strengthen research and innovation in order to protect natural and cultural resources through a joint contribute to competitiveness and increase the management of technological and natural risks. development of the Adriatic area through economic, social and institutional cooperation. Possible initiatives might include: Reinforcing local authority competence in the joint management Possible activities might include: Establishment of the marine and coastal environment through of cooperation networks between Universities, the promotion of a common planning policy; Research Centers and other qualifi ed organizations; implementation of specifi c studies of the coastal developing competitive and cooperative mechanisms environmental system; developing common to guarantee funds for the most promising instruments for integrated coastal zone management; researchers; supporting and facilitating advanced marine-coastal environment monitoring also through research activities; fostering researcher mobility a joint Geographical Information System (GIS); and, in particular, the exchange of researchers and joint projects for the protection of inland water from technicians between enterprises and universities; widespread pollution, from alien and invasive species reinforcement of systemic cooperation between and the control of sea water quality; strengthening research and private/public companies; creating of ecological systems and protection of biodiversity international technological platforms; capacity to improve environmental quality and the promotion building and transfer of know-how; promoting the of economic and social sustainable development; dissemination of best practice; creating scientifi c prevention of coastal erosion; scientifi c research to and technological networks in the Adriatic area for improve sustainable and responsible use of marine the exchange of information, data and experiences food resources to guarantee food supply quality, on research and innovation; creating ICT facilities protection of the NATURA 2000 sites. to support SMEs and start-ups processes and supporting the creation of regional and interregional Priority 3 - Accessibility of networks aims to clusters of excellence; promotion of joint research strengthen and integrate existing infrastructure activity between enterprises and universities networks, to promote and develop transportation, and developing partnership for innovation, and information and communication services. by supporting the creation of regional and trans- regional clusters of excellence. 52 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Who benefi ts from the programme? Examples of possible initiatives are: Modernization and strengthening of port and airport facilities and Research Centers and Institutions, Universities, improving the security of goods and carriers. enterprises, Public Organizations and bodies, and public equivalent authorities (ports and airports Priority 4 - Technical Assistance is designed authorities) are the main benefi ciaries of the to support the successful overall programme projects. In addition local and regional authorities implementation. will clearly profi t from the fi nancial support provided as will the general public in the regions. Implementation aspects

The aim of the Programme is to achieve high quality result orientated projects of strategic character, relevant to the Programme area. Projects will be generated through open and restricted calls for proposals.

THE CROATIA - BOSNIA AND HERZEGOVINA CROSS BORDER COOPERATION OPERATIONAL PROGRAMME, 2007 - 2013

The Operational Programme supports joint projects between Croatia and Bosnia and Herzegovina, which will be implemented during the period 2007-2013. This strategic document is based on a joint planning effort of the Croatian and Bosnian parties. The eligible area for Croatia – Bosnia and Herzegovina CBC Operational Programme 2007-2013 is shown in Map 4.

Map 4. Eligible area for Croatia – Bosnia and Herzegovina CBC Operational Programme, 2007 – 2013

53 European Funds for Croatian Projects

Priorities

Based on the situation analysis of the region the following priorities shown in Table 21 have been identiﬁ ed:

Table 21. Priorities and measures of Croatia – Bosnia and Herzegovina CBC Operational Programme, 2007 - 2013

Priority 2 – Priority 1 – Priority 3 – Improved Quality of Life Creation of joint economic space Technical Assistance and Social Cohesion

Measure 1.1. Measure 2.1. Measure 3.1. Development of joint tourist offer Environmental protection Support to Programme Administration and Implementation.

Measure 1.2. Measure 2.2. Measure 3.2. Promotion of entrepreneurship Improved accessibility to community Support to Programme Information, based services Publicity and Evaluation

Priority 1 Creation of joint economic space Who benefi ts from the programme? Under this priority the goal is to develop joint tourist packages based on a common environmental and Direct benefi ciaries of this priority are non profi t cultural heritage and improve the competitiveness legal persons, established by public or private law, of the local tourism economy. In addition, to foster belonging to one of the following groups: the development of the regional economy by strengthening the SME sector and business support ● Regional and local public authorities; institutions and services. ● Public bodies (funds, institutions, agencies) established by the state or by a regional/ Priority 2 Improved quality of life and Social local self-government such as: research Cohesion and development institutions, education and This priority is planned to be achieved by protecting training institutions, health care institutions, and preserving the environment and by encouraging institutions for the protection of natural the sustainable use of natural resources in border and cultural heritage, local and regional regions through joint actions and awareness raising development agencies, tourist agencies and campaigns. As well as enabling access to community associations, etc.; based services which impact on the well-being and ● Private institutes, established by the private social cohesion of local citizens and communities. law, ,such as educational or research institutes, as long as they operate on a non-profit basis; Priority 3 Technical Assistance for programme ● Non-governmental organisations such as implementation, aimed at structures responsible for associations and foundations; successful programme delivery. ● Chambers of commerce, agriculture, crafts and industry, clusters registered as non-profit legal persons; Implementation aspect ● Agricultural associations and cooperatives. ● National and Regional Parks, Landscape The Cross-Border programme operates Parks. predominantly through grant schemes based on single invitations for proposals and a single selection process covering both sides of the border. Grant award procedures shall be compliant with the provisions of the IPA Implementing Regulation

54 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

THE CROATIA - MONTENEGRO CROSS BORDER COOPERATION OPERATIONAL PROGRAMME, 2007 - 2013

The Operational programme for cross-border cooperation areas between Croatia and Montenegro will be implemented during the period 2007-2013. This strategic document is based on a joint planning effort by the Croatian and Montenegrin parties. Eligible regions under the programme are shown in Map 5 and Table 22.

Map 5. Eligible area for Croatia – Montenegro CBC Operational Programme, 2007 – 2013

Table 22. The eligible regions under the Croatia - Montenegro CBC Operational Programme, 2007 - 2013

Croatia (NUTS III, Counties) Montenegro (Municipalities)

Eligible area Adjacent area Eligible area Adjacent area (Art. 88) (Art. 97) (Art. 88) (Art. 97)

Dubrovnik-Neretva County Split-Dalmatia County Herceg Novi Nikšić Kotor Podgorica Tivat Danilovgrad Budva Bar Ulcinj Cetinje

55 European Funds for Croatian Projects

Priorities

Based on the situation and SWOT analysis of the eligible area the following priorities (see Table 23) have been identiﬁ ed:

Table 23. Priorities and measures of Croatia – Montenegro CBC Operational Programme, 2007 - 2013

Priority 1 – Priority 2 – Creation of favourable environmental Technical Assistance and socio-economic conditions

Measure 1.1. Measure 2.1. Joint actions for environment, nature and cultural heritage Programme Administration and Implementation protection

Measure 1.2. Measure 2.2. Joint tourism and cultural space Programme Information, Publicity and Evaluation

Measure 1.3. Small cross-border community development projects

Under Priority 1 - Creation of favourable Implementation aspect environmental and socio-economic conditions the following activities may be fi nanced: Joint The Cross-Border Programme operates planning and capacity building activities for solid predominantly through grant schemes based on waste management and waste water management single invitations for proposals and a single selection systems; joint planning and capacity building process covering both sides of the border. activities for water supply, waste water and Grant award procedures shall be compliant with the solid waste systems with cross border impacts; provisions of the IPA Implementing Regulation. planning and establishment of networks for joint environmental interventions on land and sea (joint fi re fi ghting schemes, joint interventions in case Who benefi ts from the Programme? of sea pollution, purchase of equipment of joint interest/use, etc); joint environmental programmes Direct benefi ciaries are non profi t legal entities and initiatives (river catchments management, established by public or private law for the purposes air pollution, sea pollution etc.); identifi cation and of public interest or public companies meeting needs clean-up of uncontrolled waste disposal sites and of general interest, belonging to one of the following development of prevention measures; cross-border groups: studies and direct actions on the applicability of ● Public companies in charge of communal renewable energy sources; cross-border studies infrastructure and waste management (Utility on the environmental impacts of human activities; companies) awareness raising activities – public information ● Emergency services and participation; education and know how transfer ● Local and regional self-government units relating to environmental protection; elaboration ● Agencies and other public bodies in charge of of cross-border regional plans and programs for environmental and nature protection intervention related to environment protection; ● Educational and Research Public Institutes elaboration of joint plans and programmes for the ● NGOs management of protected areas and NATURA ● Regional/local development agencies, etc. 2000 sites; small-scale reconstruction of cultural/ architectural heritage.

Priority 2 – Technical Assistance is primarily aimed at structures designated for programme implementation with the goal of supporting successful programme management and implementation.

56 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

THE CROATIA - SERBIA CROSS BORDER COOPERATION OPERATIONAL PROGRAMME, 2007 - 2013

The Cross Border Cooperation Operational Programme between Croatia and Serbia will be implemented during the period 2007-13. This strategic document is based on a joint planning effort by the Croatian and Serbian parties. Eligible regions under the programme are shown in Map 6 and Table 24.

Map 6. Eligible area for Croatia – Serbia CBC Operational Programme, 2007 – 2013

Table 24. The eligible regions under the Croatia - Serbia CBC Operational Programme, 2007 - 2013

Article 88 Article 97 Regions Eligible Region Adjacent Region Croatia Osjek-Baranja county Equivalent to the NUTS 3 region Vukovar- Srijem county Equivalent to the NUTS 3 region Požega-Slavonija county Equivalent to the NUTS 3 region Brod-Posavina county Equivalent to the NUTS 3 region Serbia Srem district Equivalent to the NUTS 3 region South Bačka district Equivalent to the NUTS 3 region West Bačka district Equivalent to the NUTS 3 region North Bačka district Equivalent to the NUTS 3 region Mačvanska district Equivalent to NUTS 3 region

57 European Funds for Croatian Projects

Priorities

From a joint study of the situation and SWOT analysis of the region, shared priorities have been identiﬁ ed (see Table 25).

Table 25. Priorities and measures of Croatia – Serbia CBC Operational Programme, 2007 - 2013

Priority 1 – Priority 2 – Sustainable Socio-Economic Development Technical Assistance

Measure 1.1. Measure 2.1. Economic Development Programme Administration and Implementation

Measure 1.2. Measure 2.2. Environmental Protection Programme Information, Publicity and Evaluation

Measure 1.3. People to People

Under Priority 1 - Sustainable social-economic education and training institutions, health care development, more specifi c aims are the promotion institutions, local and regional development of business cooperation, increased cross-border agencies, tourist agencies and associations, trade, developing labour market mobility, cross- etc., border research development and innovation ● Non-governmental organisations such as and joint economic planning; stimulating tourism associations and foundations development based on the cross-border regional ● Private institutes established by private law identity and the natural and cultural assets of the entities for meeting needs of general interest cross-border region; protecting and safeguarding the as long as they operate on a non-profit basis natural assets of the cross-border region by taking ● Agricultural associations and cooperatives joint actions and by increasing public awareness and promoting good neighbourly relations across the border between local communities. PARTICIPATION OF CROATIA IN TRANSNATIONAL COOPERATION The goal of Priority 2 - Technical Assistance is to raise the capacity for successful programme PROGRAMMES management and implementation by relevant responsible structures. The establishment and development of transnational co–operation is one of the priorities of the European Territorial Co–operation objective of the Structural Implementation aspect Funds 2007–201325. The Cross-Border Programme operates The South–East European Space and predominantly through grant schemes based on Mediterranean Space Operational Programmes are single invitations for proposals and a single selection specifying the cooperation priorities and actions to process covering both sides of the border. be implemented by the participating countries. The priorities are implemented through single invitations for proposals covering the eligible territory for the Who benefi ts from the programme? respective programme26. Direct benefi ciaries are non profi t legal persons The entire territory of Croatia is eligible for the established by public or private law, belonging to Operational Programmes “South–East European” one of the following groups: and “Mediterranean”. Specifi c programme for ● Regional /local public authorities fi nancing the participation of Croatian organizations ● Chambers of commerce, crafts, agriculture, in those two programmes as part of IPA Component industry II - Cross–Border Cooperation was approved by the ● Clusters registered as non-profit legal entities European Commission. ● Public/non-profit organisations (funds, institutions, agencies) established by the state or a regional/local self-government such as: research and development institutions, 25 More about European Territorial Co–operation objective and Structural Funds is provided in Chapter IV 26 More about invitation for proposals is provided in Chapter V 58 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

SOUTH EAST EUROPE OP, 2007 – 2013

The Transnational Cooperation Programme South East Europe (SEE) is part of the new Objective 3 European Territorial Cooperation for the programme period 2007 – 2013.

The programme area covered by South East Europe Operational Programme (SEE OP) is a large geographical area of 2.7 million square km and includes 17 countries with a total population of 269 million (see Map 7).

Map 7. Eligible area for South East Europe Operational Programme, 2007 – 2013

59 European Funds for Croatian Projects

It includes all three types of aforementioned regions: Regions of Member States (among them a founding state, countries which joined at different stages of the development of the Union as well as new member states), regions of Potential and actual Candidate Countries as well as of third countries (see Table 26):

Table 26. The eligible regions under the South East Europe Operational Programme, 2007 - 2013

Country Area

Albania Whole territory Austria Whole territory Bosnia-Herzegovina Whole territory Bulgaria Whole territory Romania Whole territory Croatia Whole territory Former Yugoslav Republic of Macedonia Whole territory Greece Whole territory Hungary Whole territory Italy Lombardia, Prov. Autonoma Bolzano/Bozen, Prov. Autonoma Trento, Veneto, Friuli-Venezia-Giulia, Emilia Romagna, Umbria, Marche, Abruzzo, Molise, Puglia Basilicata Serbia Whole territory Montenegro Whole territory Slovakia Whole territory Slovenia Whole territory Turkey Regions: Bati Marmara, Istanbul Moldova Whole territory Ukraine Cjermovestka Oblast, Ivano-Frankiviska Oblast, Zakarpatska Oblast, Odessa Oblast

Priorities

From a joint study of situation and SWOT analysis of the region, shared priorities have been identiﬁ ed. These priority axes are further detailed down to the distinct level of areas of intervention as follows in Figure 6:

60 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Figure 6. Priorities axis and areas of interventions of South East Europe Operational Programme, 2007 - 2013

Priority Axis 1 Priority Axis 2 Priority Axis 3 Priority Axis 4 Priority Axis 5 Facilitation of Protection and Improvement of the Development Technical assist- innovation and improvement of the accessibility of transnational ance to support entrepreneurship environment synergies for implementation and sustainable growth capacity building areas AoI 1.1 AoI 2.1 AoI 3.1 AoI 4.1 AoI 5.1 Develop technology & Improve integrated Improve co-ordination Tackle crucial problems Secure the core innovation networks in water management and in promoting, planning affecting metropolitan management for the specifi c fi elds fl ood risk prevention and operation for areas and regional implementation of the primary & secondary systems of settlements programme transportation networks AoI 1.2 AoI 2.2 AoI 3.2 AoI 4.2 AoI 5.2 Develop the enabling Improve prevention of Develop strategies Promote a balanced Implement environment environmental risks to tackle the “digital pattern of attractive accompanying for innovative divide” and acc-essible growth activities (…) entrepreneurship areas AoI 1.3 AoI 2.3 AoI 3.3 AoI 4.3 Enhance the Promote co-operation Improve framework Promote the use of framework conditions in management of conditions for multi- cultural values for and pave the way for natural assets and modal platforms development innovation protected areas AoI 2.4 Promote energy and resource effi ciency

Priority Axis 1 Facilitation of innovation and and implement integrated strategies for metropolitan entrepreneurship shall contribute specifi cally to areas and regional systems of settlements, optimise the future development of South East Europe as the area’s polycentric structures and use cultural a place of innovation. The objective is to facilitate values for sustainable development. innovation, entrepreneurship, knowledge economy and to enhance integration and economic relations Priority Axis 5 Technical assistance to support in the co-operation area. implementation and capacity building shall contribute to the smooth implementation of Priority Axis 2 Protection and improvement of the the programme while enabling the programme environment shall contribute to the improvement bodies, stakeholders, project promoters and fi nal of the environmental conditions and to a better benefi ciaries to make full use of the opportunities management of protected and other natural/semi offered by the European Territorial Co-operation natural areas. The objective is to override the Objective 3 and transnational co-operation in constraints imposed by national barriers, to foresee particular. future environmental threats and opportunities and to develop common transnational action for the protection of nature and humans. Implementation aspect

Priority Axis 3 Improvement of the accessibility The Transnational cooperation Operational shall contribute speciﬁ cally to the improvement programme South East Europe operates of the accessibility of local and regional actors to predominantly through grant schemes based on the European Networks. That includes physical calls for proposals. infrastructure as well as access to the Information Society. The objective is to promote co-ordinated preparation for the development of accessibility Who beneﬁ ts from the programme? networks and the support of multi-modality. Eligible project partners are public authorities; public Priority Axis 4 Development of transnational equivalent bodies and any legal body governed synergies for sustainable growth areas shall by public or private law not having an industrial or contribute to the balanced and polycentric patterns commercial character. of the programme area. The objective is to develop 61 European Funds for Croatian Projects

In 2004–06, CARDS funds has ﬁ nanced the participation of Western Balkan countries in the Neighbourhood Programme "Central, Adriatic, Danubian and South–Eastern European Space" (CADSES), one of the given 2000–2006 European transnational cooperation areas covered by the INTERREG IIIB initiative. The participation in the CADSES programme, the precursor of the 2007–13 South–East European Space Programme, provided the ﬁ rst opportunity for Western Balkan countries to get involved in transnational co–operation with EU Member States and, at the same time, to become familiar with the procedures of INTERREG programmes.

MEDITERRANEAN OP, 2007 – 2013

The Transnational Cooperation Operational ● Malta: the entire country Programme Mediterranean 2007-13 covers the ● Portugal: 2 regions – Algarve, Alentejo following countries and regions (see also Map 8): ● Slovenia: the entire country ● Spain: 6 autonomous regions and the two ● Cyprus: the entire country autonomous cities – Andalusia, Aragon, ● France: 4 regions – Corse, Languedoc- Catalonia, Balearic islands, Murcia, Valencia, Roussillon, Provence Alpes Côte d’Azur,Rhône- Ceuta and Melilla Alpes ● United-Kingdom: 1 region of economic ● Greece: the entire country programming – Gibraltar ● Italy: 18 regions : Abruzzo, Apulia, Basilicata, Calabria, Campania, Emilia-Romagna, Friuli- Beyond these regions, the participation of candidate Venezia Giulia, Lazio, Liguria, Lombardy, and potential Candidate Countries is eligible, but Marche, Molise, Umbria, Piedmonte, Sardinia, with their own funds coming from the Instrument for Sicily, Tuscany, Veneto. Pre-accession Assistance (IPA).

Map 8. Eligible area for Mediterranean Transnational Cooperation Operational Programme, 2007 – 2013

62 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Priorities

From a joint study of the situation and SWOT analysis of the region, shared priorities have been identiﬁ ed, as follows (see Figure 7):

Figure 7. Priorities and measures of Structure of the Mediterranean Transnational Cooperation Operational Programme, 2007 – 2013

General orientation of the Med programme Improvement of competitiveness of the Med space in order to promote growth and employment for the next generations Promotion of territorial cohesion and environmental protection in a logic of sustainable development

Priority Axis 1 Priority Axis 2 Priority Axis 3 Priority Axis 4 Strengthening Protection of the Improvement of Promotion of a innovation environment mobility and of polycentric and capacities and promotion of a territorial accessibility integrated sustainable territorial Territorial development development of Priorities development the Med space

Objective 3.1. Objective 4.1. Objective 1.1 Objective 2.1. Protection and Improvement of Coordination of maritime accessibility development Dissemination enhancement of and of transit policies and of innovative natural resources and capacities through improvement of technologies and know- heritage multimodality and territorial how intermodality governance Objective 2.2. Promotion of renewable energy and improvement of energy efﬁ ciency Objective 1.2. Objective 3.2 Objective 4.2.

Measures Strengthening strategic Objective 2.3. Support to the use of Strengthening of cooperation Maritime risks information identity and between economic prevention and technologies for a enhancement of development strengthening of better accessibility and cultural resources actors and public maritime safety territorial cooperation for a better authorities integration of the Med space Objective 2.4. Prevention and ﬁ ght against natural risks

Implementation aspect

The Transnational Cooperation Operational ● regions; Programme operates predominantly through grant ● reserves and natural parks; schemes based on single invitations for proposals. ● agencies and institutes, specialised in the sectors concerned ● research institutes specialised in the sectors Who benefi ts from the programme? concerned ● development agencies; Direct benefi ciaries are non profi t legal organizations ● enterprises and private agencies in charge of established by public or private law, belonging to the sector concerned one of the following groups: ● organisation for the promotion of tourism, etc. ● local authorities; ● association of municipalities and local authorities, 63 European Funds for Croatian Projects

Implementation of IPA-CBC OPERATIONAL PROGRAMME “REGIONAL COMPETITIVENESS”, 2007 - 2009 The Ministry of Regional Development, Forestry and Water Management is responsible for More speciﬁ cally, the Programme is designed to the implementation of IPA-CBC. Its web resolve development problems in underdeveloped page27 has updates on new developments regions, to ensure a modern and appropriate concerning this component. The full text of all framework for cooperation between the business programmes is available at the web page of the sector and the academic community, and to European Commission, Directorate General for encourage and support the development of small Enlargement28. and medium enterprises (SMEs).

The Implementing Agency for the Croatia–IPA CBC It is envisaged that roughly half of the funding Programmes is the Central Finance and Contracting under the operational programme be utilized by Agency. underdeveloped areas of Croatia, in particular the ten counties having more than 50% of their For information about IPA tender opportunities under surface area categorised as an “Area of Special IPA Component II, please refer to the web site of the State Concern” (according to the proposal of Central Finance and Contracting Agency29. National Strategy for Regional Development). All ten counties are also within the two NUTS II regions whose gross domestic product (GDP) is below IPA Component III: Regional development the national average (East/Panonian/Croatia and Adriatic Croatia)30. Component III – Regional development (IPA-RD) – prepares Croatia for utilization of the European Funding under the OP “Regional competitiveness” Fund for Regional Development which is one of the is channelled toward 3 priority directions, shown in EU Structural funds. Table 27.

In compliance with the IPA Regulation Component III IPA “Regional development” will be implemented through Operational Programmes (OP), which is the practical instrument for the execution of all components at operational level. The three Operational Programmes covered by IPA-RD are: the “Regional Competitiveness” OP, the “Transport “OP and the “Environment” OP.

Table 27. Priorities and measures of Operational Programme “Regional Competitiveness”, 2007 - 2009

Priority Axis 1 – Measure 1.1. Business-related Operation 1.1.1 Business-related infrastructure Improving development infrastructure potential of the lagging behind regions Priority Axis 2 – Measure 2.1. Improvement of Operation 2.1.1. Improvement of administrative efﬁ ciency on Enhancing the business climate national level competitiveness of the Croatian economy Operation 2.1.2. e-Business competitiveness improvement programme Operation 2.1.3. Provision of advisory services to SMEs Operation 2.1.4. Development of investment climate Operation 2.1.5. Support for cluster development Measure 2.2. Technology Operation 2.2.1. Science and Innovation Investment Fund transfer and support services for knowledge-based start-ups Operation 2.2.2. Biosciences technology commercialisation and incubation centre (BioCenter) Priority Axis 3 – Measure 3.1. Operational Operation 3.1.1. TA related to horizontal management issues Technical assistance Programme management and capacity building Operation 3.1.2. Development of sector studies, preparation of future programming documents and accompanying project pipelines

27 http://www.mrrsvg.hr/ 28 http://ec.europa.eu/enlargement/candidate-countries/croatia/ipa_en.htm#comp2 29 http://www.safu.hr/en/tenders 30 Please refer to Chapter IV for more information on NUTS regions and ﬁ nancial eligibility. 64 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Priority 1: Improving development potential of Priority 2: Enhancing the competitiveness lagging behind regions will fi nance investments of the Croatian economy aims to enhance the in infrastructure combined with human resources competitiveness of the Croatian overall economy investments necessary for strengthening the and in particular to enhance the growth potential business support base and stimulating potential of SMEs. It therefore focuses on several elements for economic growth. The focus will be on existing underpinning these potentials: making quality and new business-related infrastructure, ranging business advisory services, including e-business, from basic communal infrastructure within existing more accessible to SMEs; encouraging cooperation business zones to infrastructure and services between businesses and cooperation of businesses geared towards a higher value production. and public, education and research sectors through the enhancement of clusters; enhancing technology The Measure 1.1. Business-related infrastructure transfer and incubation capacities in high value envisages fi nancial resources for establishing and added sectors; developing effective business improving public business-related infrastructure in support capacities relative to investment promotion the ten counties which are least developed within the at the regional level. two NUTS II regions (East /Panonian/ and Adriatic). The measure will support mainly projects of regional The term SME has a specifi c meaning in the EU and municipal authorities. Investment will go for the language. Table 28 below describes the parameters development of business-related support systems, against which the enterprise categories are i.e. business infrastructure and accompanying defi ned. services. It will primarily allocate investment in the development of new and existing business and related infrastructure in the perspective economic sectors of the relevant region.

Table 28. Enterprise categories

Enterprise category Headcount Turnover OR: Balance sheet total medium-sized < 250 ≤ EUR 50 million ≤ EUR 43 million small < 50 ≤ EUR 10 million ≤ EUR 10 million micro < 10 ≤ EUR 2 million ≤ EUR 2 million

What is value added sectors?

These are knowledge-intensive sectors - those The Measure 2.2.Technology transfer and support which achieve higher levels of output as a result services for knowledge-based start-ups will develop of higher skills levels, more investment and a cooperation between higher education institutions the application of research or greater levels of and public research organizations with a view to innovation. Such sectors include medium/high fostering the knowledge and innovations as a basis technology manufacturing fi rms (e.g. in the fi elds for economic development. Technology transfer will of communications, information technologies, be supported as well as its commercialization. This pharmaceuticals) and high value-added business measure will also reinforce clustering of SMEs and services (e.g. fi nancial services, e-services, etc.). start-ups in high value added sectors and public research centres and universities.

The Measure 2.1. Support services for existing Under both priorities funds are also intended for the enterprises focuses on services to existing SMEs, preparation of projects by potential benefi ciaries – i.e. particularly those with the potential for growth and generation of project ideas, their further elaboration export. Projects are supposed to enhance the into mature and high-quality project proposals, and SMEs’ competitiveness based on ICT (e-business), preparation of tender documentation, etc. develop business skills and services and stimulate clustering, meaning grouping of companies with As in other operational programmes, Priority 3: similar profi les. Technical assistance is envisaged to support a Assistance will be targeted at individual SMEs as designated structure for the effi cient management well as the relevant institutional infrastructure in of the programme. order to enhance business services and make them more accessible to SMEs. 65 European Funds for Croatian Projects

Who beneﬁ ts from the programme?

The benefi ciaries are, to a certain extent, ministries the programme. Additionally, it has specifi c in charge of management of different priorities and responsibilities which concern Priority 2, measure measures – Ministry of Regional Development, 2.1 and Priority 3. Forestry and Water Management, Ministry of Economy, Labour and Entrepreneurship and Other state bodies are in charge of other specifi c Ministry of Science, Education and Sports. priorities and measures of the OP:

Other beneﬁ ciaries are: ● Ministry of Regional Development, Forestry and Water Management32. Its responsibilities ● Regional and local self-government units concern Priority 1, measure 1.1. ● Regional/local-owned public institutions or ● Ministry of Science, Education and Sports33. associations, public companies owned by self- Its responsibilities concern Priority axis 2, government authorities measure 2.2. ● Regional/local tourism boards ● Croatian Agency for Small Enterprises, Trade The agency in charge of tendering and contracting and Investment Promotion Agency, Croatian is the Central Finance and Contracting Agency. Chamber of Commerce, etc. ● SME support centres and their partners – local and regional entrepreneurial and education institutions assisting in the setting up of OPERATIONAL PROGRAMME e-business centres “TRANSPORT”, 2007 - 2009 ● Regional development agencies ● Higher education institutions (for their individual The programme is developed to resolve problems institution and/or as part of a consortium bid) in the transport sector of Croatia, in particular the ● Public research sector organisations (for lack of investment in the railway network which was their individual institution and/or as part of a damaged during the armed conﬂ ict of the 1990s., consortium bid) the poor condition of the inland waterway ports, the ● Business Innovation Centre of Croatia, Ltd. lack of investment for the modernisation of airports (BICRO) – a national public body established as well as the low competitiveness of the sea ports by the Government and acting as an executive as commercial operators. It has been decided that agency. initially IPA be channelled primarily for modernization of the rail network, and later, of the inland waterway system. Implementation of IPA-Regional Development, OP “Regional Competitiveness” The funding under the OP “Transport” is structured toward 3 priorities, which cover several more The main state institution which is responsible for focused measures, shown in Table 29. the entire OP is the Ministry of Economy, Labour and Entrepreneurship31. Its web page will keep you informed about the new developments concerning

Table 29. Priorities and measures of Operational Programme “Transport”, 2007 – 2009

PRIORITY AXIS 1 Upgrading Croatia’s rail transport system Measure 1.1 Line upgrading and modernisation Measure 1.2 Improvement of the safety and efﬁ ciency of railway operations PRIORITY AXIS 2 Upgrading Croatia’s inland waterway system Measure 2.1 Modernisation and rehabilitation of river waterways and port infrastructure PRIORITY AXIS 3 Technical assistance Technical assistance for OP management, identifying future projects, capacity building and Measure 3.1 preparing future Operational Programmes

31 http://www.mingorp.hr 32 http://www.mrrsvg.hr 33 http://www.mzos.hr 66 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Priority 1: Upgrading Croatia’s rail transport The objective of Priority 3: Technical Assistance system will promote the rehabilitation and is to ensure effi cient and effective OP management, development of a railway network in Croatia to and to develop the institutional capacity necessary respond to the expected increase in demand for managing and absorbing IPA and the future for railway transport, especially on the Pan- Structural Funds. The measure envisages several European corridor X. It includes line up-grading and types of technical assistance and training for the modernisation, improvement of safety and effi ciency relevant institutions at national and regional level. of railway operations and the preparation of future projects to be fi nanced under IPA Transport OP. In addition, OP “Transport” contains an indicative list of future projects (see Table 30) to be fi nanced Priority 2: Upgrading Croatia’s inland waterway with the estimated investment: system will assist in the preparation of infrastructure projects in the fi eld of inland waterways, for their implementation during the period 2010-2013.

Table 30. List of future project under Operational Programme “Transport”, 2007 - 2009

Project Estimated value of Project name Measure number projects in Euros PRIORITY AXIS 1 1 Zagreb Main Station Signalling and Interlocking System Measure 1.2 17,900,000 2 Line Rehabilitation Okučani to Novska Section Measure 1.1 38,500,000 3 Line Rehabilitation Novska to Dugo Selo Section Measure 1.1 135,000,000 4 Line Rehabilitation Zaprešić to Savski Marof Section Measure 1.1 25,000,000 PRIORITY AXIS 2 5 Rehabilitation and Improvement of the Sava River Waterway Measure 2.1 40,000,000 6 Reconstruction of the Port of Vukovar – New Port East Measure 2.1 40,000,000

Who beneﬁ ts from the programme?

Since the value of the projects to be ﬁ nanced under Transport OP has to be above EUR 10 million, the projects are decided at national level and implemented by companies with previous experience of these type of projects in Croatia.

The beneﬁ ciary of the project is strictly speaking the Ministry of Sea, Transport and Development, the Railway authority but also the general Croatian public.

Implementation of IPA-RD, OP “Transport”

The main state institution responsible for the entire OP is the Ministry of Sea, Transport and Development34. Its web page is kept updated about the developments concerning the programme. The Implementing Agency in charge for tendering and contracting is HŽ Infrastructure LLC for Management, Maintenance and Building of Railway Infrastructure35.

34 http://www.mmpi.hr. 35 http://www.hznet.hr/iSite3/Default.aspx?sec=29 67 European Funds for Croatian Projects

OPERATIONAL PROGRAMME “ENVIRONMENT”, 2007 - 2009

The "Environment" OP is designed to improve the water supply, to ensure adequate treatment of wastewater in line with EU standards, to improve waste management, and in the long term to prevent air pollution. Funding is envisaged to develop a protective infrastructure in two „investment-heavy“ areas related to the adoption of the acquis: waste management infrastructure and water supply and waste-water treatment infrastructure.

Funding under the OP “Environment” is channelled toward 3 priority axes, shown in Figure 8.

Figure 8. Priorities and measures of Operational Programme “Environment”, 2007 - 2009

Priorities and measures of OP “Environment”

Priority Axis 1 Priority Axis 2 – Developing waste management – Protecting Croatia’s water Priority Axis 3 infrastructure for establishing an resources through improved water Technical Assistance integrated waste management supply and integrated waste water system in Croatia management systems

Measure 1.1. Measure 2.1. Measure 3.1. Establishment of new waste Establishment of modern water OP management and management centres at county/ supply systems and networks capacity building regional levels

Measure 1.2. Measure 2.2.

Remediation of sites highly polluted Construction of WWTP for domestic by waste (hot spots) and industrial wastewater and upgrading the sewerage network

Priority 1: Developing a waste management and the provision of suffi cient good quality water infrastructure for establishing an integrated through the enhancement of the existing water waste management system in Croatia includes supply system, protection of drinking water sources, the establishment of waste management centres and the rational use of water resources including - construction of new municipal landfi lls, facilities reduction of losses, and improvements in the water for separation of waste by categories and waste supply network. Also, it will cover investments treatment with an aim to reduce the biological in the collection and treatment of wastewater, component of waste. These centres will be the key such as construction of the wastewater treatment element of the new integrated waste management plants, construction of new sewerage networks and system which will be in line with Croatian and EU modernisation of the existing sewerage networks in environmental legislation governing the treatment order to reduce leakage. and disposal of waste. It also consists of the remediation of sites highly polluted by waste (hot Both measures have the possibility for the spots) which might be even closed (in cases where preparation of future projects. This measure will they pose a threat to health and the environment). support the relevant institutions and potential benefi ciaries in the preparation of project proposals The assistance for Priority 2: Protecting Croatia’s and tender documentation in the fi eld of this and water resources through improved water future operational programmes. supply and integrated wastewater management systems will include the establishment of modern The objective of Priority 3 - Technical Assistance water supply systems and networks which will is to ensure effi cient and effective OP management, contribute to the protection of water resources and to develop the institutional capacity necessary 68 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

for managing and absorbing IPA and the future Structural Funds. The measure envisages several types of technical assistance and training for the relevant institutions at both national and regional level.

The OP contains the indicative list for major projects under each of the two priorities (Table 31 and 32):

Table 31. List of projects under Priority axis 1 for Operational Programme “Environment”, 2007 - 2009

Project Estimated Priority Project name Measure preparation value of axis support projects M€ PRIORITY AXIS 1 – Regional Waste Management Centre Developing waste Marišćina (The County of Primorje and Measure 1.1 41,78 management Gorski Kotar) infrastructure for Regional Waste Management Centre for establishing an Measure 1.1 CARDS 2002 55,7 the County of Split –Dalmatia integrated waste management Regional Waste Management Centre for Measure 1.1 EBRD 45 system in Croatia the County of Istria

Table 32. List of projects under Priority axis 2 for Operational Programme “Environment”, 2007 - 2009

Project Priority Project name Measure preparation Total M€ axis support Slavonski Brod DABLAS /DISF – Measure 2.1. Feasibility study with 27 Measure 2.2. PRIORITY AXIS 2 – Pro- cost benefi t analyses tecting Croatia’s water Knin - Drniš EC support CARDS - resources through im- Measure 2.2. ROP Feasibility study 16,4 proved water supply and with cost benefi t analyses integrated waste water management systems Osijek DABLAS /DISF – Measure 2.1. Feasibility study with 20 Measure 2.2. cost benefi t analyses

Who beneﬁ ts from the programme?

The main benefi ciaries of the programme are local Physical Planning and Construction36. Its web page and regional authorities of the territory in which the is updated with new developments concerning selected projects are implemented. It also benefi ts the programme. Additionally, it has specifi c municipal companies that are in charge of the responsibilities which concern Priority Axis 1 and 3. selected project implementation and afterwards the The Ministry of Regional Development, Forestry management of the facility. and Water Management is in charge of Priority 2 and related measures of the OP37.

Implementation of IPA-RD, OP “Environment The Implementing Agency for Priority 1 is the protection” Fund for Environmental Protection and Energy Efﬁ ciency38. The Implementing Agency for Priority The main state institution responsible for the entire 2 is Croatian Waters39. The Implementing agency OP is the Ministry for Environmental Protection, for Priority 3 is the Central Finance and Contracting Agency40.

36 http://www.mzopu.hr 37 http://www.mps.hr 38 http://www.fzoeu.hr/hrv/index.asp?s=ipa 39 http://www.voda.hr/Default.aspx 40 http://www.safu.hr/en/tenders 69 European Funds for Croatian Projects

IPA Component IV: Human Resources Development

Component IV - Human Resources Development (IPA-HRD) - involves measures that will improve systems and administrative capacity in the ﬁ eld of employment, education and social inclusion of least advantaged groups and individuals as well as networking with partners from non-governmental sector. IPA HRD includes activities which are similar to the ones covered by the European Social Fund, which is one of the EU Structural funds. This component is designed to incorporate the objectives of the EU Lisbon strategy41.

OPERATIONAL PROGRAMME “HUMAN RESOURCES DEVELOPMENT”, 2007 - 2009

The overall aim of the Human Resources Development OP is to create more and better jobs, to attract and retain more people in employment by increasing human capital investment, reinforcing social inclusion and promoting adaptability of enterprises and workers. Priorities and measures of the Operational Programme are shown in Figure 9.

Figure 9. Overview of Priorities and Measures under Operational Programme “Human Resources Development”, 2007 - 2009

Priority Axis 1 Priority Axis 2 Priority Axis 3 Priority Axis 4

Enhancing access Reinforcing social Enhancing human Technical to employment and inclusion and capital and assistance sustainable inclusion in integration of people employability

Priority Axis the labour market at a disadvantage

Measure 1.1 Measure 2.1 Measure 3.1. Further development Measure 4.1. Supporting the design Supporting access of the Croatian Project preparation and implementation of to employment by Qualiﬁ cations active and preventative disadvantaged groups Framework labour market policy

Measure 3.2. Strengthening the provision of Adult Learning Measure 1.2. Measure 2.2. Measure 4.2.

Measures Supporting the Supporting access Programme effectiveness and to education by Measure 3.3. management and quality of Croatia's disadvantaged groups Supporting the capacity building public employment development of services institutions and their partners responsible for the provision of VET, and adult education

41 For further information about Lisbon strategy, please, follow the link: http://europa.eu/scadplus/leg/en/cha/c10241.htm 70 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

In order to prevent unemployment and promote guidance centre in partnership with relevant the reintegration of the unemployed, fi nancial business support services. support under Priority 1 – Enhancing access to ● Establish a training facility within CES employment and labour market re-integration will for key skills for counsellors (focussing be provided to the state administration and other on the unemployed), advisors (focussing stakeholders to enhance the range and content on employers), lifelong career guidance of training and counselling services that they offer counsellors, and specialised counsellors for to job seekers whilst taking into consideration the disadvantaged groups and skills for other CES particular demands of the Croatian economy. processes. ● Strengthen the analytical capacity of CES and The assistance under Measure 1.1. Supporting the MELE and introduce links with the academic design and implementation of active and preventative community to develop policy oriented labour market policy will be directly allocated to research support and develop the active and preventative ● Design and implementation of a comprehensive labour market programmes to be implemented by information strategy for CES that takes account the public employment services in Croatia. These of the evolving requirements of the European programmes should target both the unemployed Employment Strategy and respective integrated and those facing the likelihood of unemployment. guidelines This measure will also promote the development ● Support design and implementation of of partnerships to deal with design and delivery of improved business processes with the CES’s employment activities. Partnerships are intended IT system and user-friendly IT solutions, to involve public employment services and other including upgrading of the IT equipment & public bodies, representatives of business, labour software and the community. ● Create a system of quality assurance, monitoring, evaluation and training-needs Indicative activities under this measure will focus on assessment for CES business processes. developing partnerships for employment at county and inter-county level in order to: Priority Axis 2 – Reinforcing social inclusion of people at disadvantage is designed for certain ● carry out labour market analyses; groups (such as young people, women and the ● elaborate local HRD strategies; disabled) who experience particular diffi culties in ● undertake local employment initiatives; fi nding employment. The integration into the labour ● develop project generation and articulation market of these groups will be based on stimulating facilities within the CES at regional level, and their participation in education and employment ● implement grant schemes in line with the HRD programmes, as well as on the provision of OP objectives and strategy psychological and social support services. The main focus will be on the unemployed In view of the signifi cantly high rate of youth (particularly those located in underdeveloped unemployment in Croatia, targeted initiatives regions), those facing the threat of unemployment, are envisaged to tackle this problem exclusively. those working in declining industries or industries Projects under Measure 2.1. Supporting access to undergoing re-structuring. Those on short-term employment by disadvantaged groups are intended contracts will also be targeted. to focus on both formal and informal learning experiences which develop personalised pathways Measure 1.2. Supporting the improvement of to qualifi cation and employment. the effectiveness and quality of Croatia's public employment services will focus on supporting the Indicative activities under this measure will include: Ministry of Economy, Labour and Entrepreneurship and the Croatian Employment Service - CES (at ● Development of new inter-institutional models the national and local level) which need to achieve and inter-sectoral business solutions for work a more professional capacity in order to meet the with disadvantaged groups; relevant requirements of EU accession. ● Training of staff (basic and advanced) in the employment and social welfare services for Indicative activities include: work with disadvantaged groups; ● Training and retraining of disadvantaged ● Development of the capacity to formulate a groups; coherent legislative framework for provision of ● Establishing a network of 'Mentors for Social lifelong career guidance. Integration' (MfSI) in the private sector and civil ● Support the work of a future National Forum society organizations including the provision for Lifelong career guidance. of institutional arrangements for its effective ● Establishment of a pilot lifelong career functioning; 71 European Funds for Croatian Projects

● Implementation of grant schemes supporting supporting stakeholders at the regional/ work placements and other relevant national level) services to the disadvantaged by both public ● Targeted support for continuous development institutions and non-governmental/non-profit of the VET Sectoral Councils, the methodology organizations. for qualification & a framework curricular development and further curricular interventions Projects within Measure 2.2. Supporting access to in selected occupational families education by disadvantaged groups are envisaged ● Support for the design and implementation to help reducing school-failure and drop-outs as of a 'VET Innovation Fund' in respect of on- well as improvement of the labour-market prospects going initiatives to be carried out by VET for disadvantaged youngsters. The activities might establishments at the regional and local level include: (depending on specific priorities - e.g. VET curricular innovations, innovative in-service ● Supporting the design and implementation of training schemes, quality assurance); educational programmes specifically targeted ● Support to institutional and policy development at disadvantaged groups (including upgrading in the field of VET quality assurance; facilities and equipment where appropriate). ● Further capacity building of relevant VET ● Building on the number of education secondary school staff and other key professionals in new services for the practitioners and stakeholders; disadvantaged, primarily in the VET sector ● Establishment/consolidation of partnerships between VET secondary schools and economic/ Priority Axis 3 – Enhancing human capital and social actors at the local and national level. employability will help the establishment of closer links between the educational and enterprise Providers of vocational education and training sectors. The intention is that students are equipped in Croatia will need to be strengthened. Support with skills needed for work. Research which pushes under Measure 3.2. Supporting the development the economic and social development will also be of institutions and their partners responsible for encouraged. The implementation of life long learning the provision of vocational education and training, practices will be supported. Croatian authorities will and adult education, in Croatia will be provided to be assisted to establish standards and apply quality reinforce the institutional capacity of the Agency assurance in relation to many of the initiatives that for Vocational Education and Training, Agency have been taken in recently (e.g. VET curricula and for Adult Education, the Education and Teacher qualifi cations). Training Agency and the teaching establishments themselves. The activities are mainly for: Measure 3.1. Improving the content and delivery of vocational education and training for all age groups ● Development of an institutional framework of aims to develop Croatia’s vocational education and local centres/bodies for entrepreneurial and training (VET) system to make it more fl exible and other skills; responsive to labour market needs. It should also ● Basic capacity building of selected local prepare people of all ages for employment and centres/institutions; lifelong learning. The development of a core network ● Procurement of equipment for selected local of vocational education and training establishments centres/institutions; is planned. They will be suitably equipped and ● Comprehensive development of the basic should deliver high-quality training to enable adults competences programmes in line with the EU to acquire necessary skills and competencies. Reference Framework for Key Competences Assistance is also foreseen for the development of the Croatian National Qualifi cation Framework and Priority 4 covers Technical Assistance for VET institutions. Some of the envisaged activities the preparation of projects within the measures are: supported by this OP and ensures the effi cient and effective management of this OP through developing ● Support for the introduction of a systematic the institutional capacity of the involved bodies at Croatian Qualification Framework (CROQF) national and regional level. peer-review process with joint-participation of the national and EU member states experts and ensure regular provision of relevant Who benefi ts from the programme? modifications (process, outcomes) ● Further improvements of the CROQF Final benefi ciaries shall be regional employment consultation and mainstreaming process at the offi ces and local (county) partnerships for regional/national level and related awareness- employment, the Croatian Employment Service at raising/capacity building campaigns (including both national and local level, secondary schools, development of user-friendly manuals teacher training colleges, Youth organizations, 72 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

Educational establishments at all levels (including Implementing agencies in charge of tendering and providers of non-formal education), VET institutions, contracting are the Croatian Employment Service45 Institutions providing adult education, Non- for priorities 1, 4, priority 2, measure 2.1 and the governmental organisations in the ﬁ eld of adult Agency for Vocational education46 and training for education, Polytechnics and schools of higher priorities 2, measure 2.2 and priority 3. learning.

In addition, the benefi ciaries are also national IPA Component V: authorities – ministries and agencies responsible for Rural Development the supported policies – the Ministry of Economy, Labour and Entrepreneurship, the Ministry of Component V - Rural Development (IPA-Rural Science, Education and Sports, the Agency for Development) - supports Croatia in policy Vocational Education and Training and the Agency development and preparation for the implementation for Adult Education. and management of the EU Common Agricultural Policy. The main focus of IPA-Rural Development falls on food production and rural development. The Implementation of IPA HRD component builds upon the SAPARD programme and is similar to the post-accession European The main state institution responsible for the entire Agricultural Fund for rural development (please see component is the Ministry of Economy, Labour and Chapter IV). Entrepreneurship42. Its web page has updates about the new developments concerning the programme. Additionally, it has specifi c responsibilities which concern Priority axis 1, measures 1.1 & 1.2 and Priority axis 4, measures 4.1 & 4.2. IPA – AGRICULTURE AND RURAL DEVELOPMENT PLAN, 2007 – 2013 Other state bodies are in charge of other specifi c priorities and measures of IPA HRD: IPA-Agriculture and Rural Development Plan 2007- ● Ministry of Health and Social Welfare43. 2013 is prepared with close coordination between the Its responsibilities concern Priority axis 2, Croatian authorities and EC services and identifi es measure 2.1. the priorities and measures shown in Table 33: ● Ministry of Science, Education and Sports44. Its responsibilities concern Priority axis 2, measure 2.2 and Priority axis 3, measures 3.1, 3.2 & 3.3.

Table 33. Priorities and Measures of Agriculture and Rural Development Plan, 2007 - 2013

Priority Axis 1 – Measure 1.1. Investments in agricultural holdings to restructure and to upgrade to Community Improving market standards effi ciency and implementation of Community Measure 1.2. Investments in the processing and marketing of agriculture and fi shery products to Standards restructure those activities and to upgrade them to Community standards Priority Axis 2 – Measure 2.1. Actions to improve the environment and the countryside Preparatory actions for implementation of Measure 2.2. Preparation Sub-Measure 2.2.1. Acquisition of skills, animating the inhabitants of the agri-environmental and implementation of local LAG territories” rural development strategies measures and local rural Sub-Measure 2.2.2. Implementation of local development strategies development strategies Sub-Measure 2.2.3. Cooperation projects Priority Axis 3 – Measure 3.1. Improvement and development of rural infrastructure Development of rural economy Measure 3.2. Diversifi cation and development of rural economic activities Priority Axis 4 – Measure 4.1. Programme Apr. 30% of the Technical Assistance measure annually will be Technical assistance management and capacity allocated for sub – measure 2.2.1 building

42 http://www.mingorp.hr 43 http://www.mzss.hr/ 44 http://www.mzos.hr 45 http://www.hzz.hr/dfc/default.asp?id=68 46 http://www.aso.hr/Item.htm?sp=884 73 European Funds for Croatian Projects

Priority 1 is focused on the improvement of a market ● improvement and development of a rural effi ciency and the implementation of the acquis in infrastructure – e.g. reconstruction of local the area of agriculture. Investment is planned for: unclassified roads and fire prevention roads, sewage systems and heating plants, etc. ● the restructuring and upgrading of agricultural ● diversification and development of rural holdings according to the Community economic activities – e.g. support to rural standards, tourism, traditional craft establishments, and ● the processing and marketing of agriculture construction of processing plants for dairy and fishery products. and meat farms and use of renewable energy resources. Final benefi ciaries of these measures are agricultural holdings (family farms, crafts and legal entities) Final benefi ciaries are local self-government units; defi ned by Act on Agriculture (OG 66/01, 83/02 see municipalities and cities with up to 10.000 inhabitants page 304), registered in the Register of Agricultural according to Census 2001. Holdings and VAT payers.

Priority 2 supports actions to improve the Who benefi ts from the programme? environment and the countryside (Measure 2.1), and preparatory actions for implementation of local The regional and local authorities, agricultural rural development strategies (Measure 2.2). holding owners and other legal or private persons (farmers) are potential benefi ciaries of the Final benefi ciaries under Measure 2.1 are 100% programme depending upon priority. privately owned crafts and enterprises or those with up to 25% of state ownership, which are in the VAT system and registered for the related business and Implementation of IPA-Rural Development which belong to micro, small and medium sized enterprises as defi ned by the Act on Promotion of The Ministry of Agriculture, Fisheries and Rural Small Business (OG 29/02 of 22 March 2002). Development (MAFRD)47 in Croatia is responsible for the overall management and implementation of Final benefi ciaries under Measure 2.2 are local IPA-Rural Development component. Its web page authorities, agricultural holding and farmers joined is updated with new developments concerning this together in Local Action Groups – groups who component. perform joint actions respecting sustainable rural development principles. Implementing Agency in charge of tendering and contracting (so-called IPARD Agency48) is Priority 3 is concentrated on the development of a Department for Market and Structural Support in rural economy by means of: Agriculture within MAFRD.

47 http://www.mps.hr 48 http://www.mps.hr/projekti/projekt.asp?PID=74 74 IPA – THE NEW PRE-ACCESSION FINANCIAL INSTRUMENT

WHAT IS PLANNED IN THE EU BUDGET FOR IPA IN CROATIA?

As seen from Table 34, the EU is going to reduce its aid for transition process and institutional building within the given period, but at the same time it is going to increase the amount for cross-border cooperation, regional development and human resources development.

Table 34. Multi-Annual Indicative Financial Framework for IPA for Croatia, 2010-2012 (EUR million)49

Multi-Annual Indicative Financial Framework 2007 2008 2009 2010 2011 2012 Total for IPA in Croatia I. TRANSITION ASSISTANCE AND INSTITUTION BUILDING 49,61 45,37 45,60 39,48 39,96 40,87 260,89 II. CROSS-BORDER COOPERATION 9,69 14,73 15,90 16,22 16,54 16,87 89,95 III. REGIONAL DEVELOPMENT 45,05 47,60 49,70 56,80 58,20 59,35 316,70 IV. HUMAN RESOURCES DEVELOPMENT 11,38 12,70 14,20 15,70 16,00 16,04 86,02 V. RURAL DEVELOPMENT 25,50 25,60 25,80 26,00 26,50 27,27 156,67 Total 141,23 146,00 151,20 154,20 157,20 160,40 910,23

The amount aimed at regional development varies take full beneﬁ t from the envisaged resources from 32 to 36.8% of the total amount, allocated to the Croatian public administration is expected to Croatia. From 2008 onwards this amount is the successfully manage IPA while also mobilising all highest among all the IPA components, clearly interested organisations, e.g. companies, NGOs, showing the importance given to the equal schools as well as individuals, to take part in its development of Croatian regions and counties. implementation.

The fi nancial value of IPA for Croatia until 2012 What is absorption capacity? is EUR 910,23 million, starting with EUR 141,23 million in 2007, with a foreseen permanent increase This term usually means the ability of a country or of annual funding. Additional funds have been organization to receive aid and use it accordingly approved for allocation for regional and horizontal and effectively. programmes i.e. IPA Multi-Benefi ciary Programmes as well as for the administrative costs of the Croatian In the context of IPA and EU structural funding, institutions for the management of IPA. Thus, for the absorption capacity stands for the degree to which starting year 2007 the overall IPA amount, including a country is able to effectively and effi ciently spend the additional funding is expected to be at the level the fi nancial resources received from the Union. of a minimum EUR 151 million with further annual In other words, it measures the ability of the given increases during the coming years. country (Member State or Partner Country) to “digest and consume” the funds it obtained in order to foster its development towards achieving improvement of the economic and social situation. IS THE EU AID UNDER IPA GUARANTEED? This ability covers the knowledge and skills of the national administration to plan and implement IPA amounts are indicative, meaning that their external assistance as well as the capacity of utilisation is not guaranteed on the part of the the benefi ciaries across the country to prepare European Union. The EU, in general, offers quality projects which would lead to utilisation of opportunities for assistance. It is the national the allocated funds and further positive effects of authorities and the Croatian society which are modernisation resulting from the executed projects. the main actors in the effective absorption of the planned EU funds. In order for the country to

49 Source: Communication from the Commission to the Council and the European Parliament: Instrument for Pre-Accession Assistance (IPA) Multi-annual indicative ﬁ nancial framework for 2010-2012. 75 European Funds for Croatian Projects

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● Structured presentations of European Community Programmes ● Useful contacts in Croatia and links to general information on European Community Programmes.

The EU has established European Community Programmes in order to promote cooperation primarily among Member States in fi elds related to different EU policies (research, competitiveness and innovation, media, education, health, youth, culture, etc). Community Programmes are multi-annual programmes with well-defi ned objectives and a budget. Each programme establishes its own rules for participation. In principle all Member States are eligible to participate in Community Programmes. Candidate Countries can participate in a particular Community Programme by signing a Memorandum of Understanding, an international agreement for a particular programme, with the European Commission services and by contributing fi nancially to the programme budget.

INTRODUCTION OF COMMUNITY PROGRAMMES IN CROATIA

In 2003 during the European Council meeting in not contribute to the Union budget, a national Thessaloniki, it was decided to open the Community fi nancial contribution to the budget of each selected Programmes so that Croatia and other countries Community Programme is obligatory. The amount in the Stabilisation and Association Process can of the fee, or so called “entry ticket” for Croatia’s participate, and by doing so clearly providing further participation, varies from programme to programme, support for future enlargement. depending on each programme's specifi city and scope – calculations are based on the ratio of the Within the overall pre-accession strategy for national GDP/EU-27 GDP and other factors (e.g. Croatia, opening up the opportunity to participate population, energy consumption etc.). With the aim of in Community Programmes is considered to be one promoting participation in Community Programmes, of the best ways for various actors within Croatian the European Commission has envisaged the society to fully comprehend the policies and methods possibility of co-fi nancing the required “entry of working within the Union, as well as being a ticket” through the Pre-accession Programmes, useful tool in support of Croatia’s efforts on its way i.e. Component I of the IPA programme with two to EU membership. Participation in Community limitations: i) the overall amount of Community Programmes enables the transfer of good practice Programme co-fi nancing can be a maximum 10% of and know-how across EU sectoral policies. the overall annual budget for Component I (research and development programmes are excluded), and ii) the co-fi nancing amount cannot be more than HOW PARTICIPATION OF CROATIA IS 90% of the fi nancing for an individual programme. ARRANGED The ideas behind the Pre-Accession Programmes and the Community Programmes is very different. The basis for participating in the Community The Community Programmes are primarily structured Programmes is the Framework Agreement which to support priority actions in EU Member States in was signed between the European Community policy domains where all EU countries have agreed and Croatia in 2004 and ratifi ed by the Croatian to act together in a given period. Croatia may choose Parliament in June 2005. to join them or not. Pre-accession assistance is structured around the identifi ed short and medium A pre-condition for the actual participation of Croatia term priorities of Croatia’s EU accession and serves in the Community Programmes is the establishment as the fi nancial instrument to achieve them. The of a legal basis for each individual programme i.e. main differences are shown in Figure 10. the negotiation and signature of a Memorandum of Understanding, an international agreement between the relevant national authority and the responsible European Commission service. Additionally, as Croatia is a Candidate Country and therefore does

78 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Figure 10. Main differences between Pre-Accession and Community Programmes

Pre-Accession Programmes CommunityCommunity ProgrammesProgrammes

□ Exclusively aimed at Candidate Countries to □ PrimarilyPrimarily forfor Member States’States’ cooperation in common prepare them for EU accession EEUU policpolicyy areasareas

□ Projects primarily aimed at national authorities □ PProjectsrojects generallygenerally involvinginvolving equivalentequivalent partnershippartnership having a strong link with Community acquis institutionsinstitutions/organisations/organisations fromfrom differentdifferent Member implementation SStatestates VS. □ No Entry ticket required – programme level co- □ EEntryntry ticket at proprogrammegramme level + co-fi nancinnancingg ofof fi nancing via individual project co-fi nancing iindividualndividual projectproject

□ Managed by national structures within the □ OOftenften manamanagedged byby EC services and executive Candidate Country – decentralised system agagencies,encies, sometimes establishment ofof speciﬁ c iimplementationmplementation structures requiredrequired at nationalnational levellevel □ Legal basis – regulation provisions establishing the Programme, same set of implementing rules □ LeLegalgal basis – each proprogrammegramme has speciﬁ c legallegal basis and differentdifferent implementation rulesrules

During 2005 and 2006, under a previous EU Financial Perspective, Croatia has already participated in several Community Programmes. With the beginning of the new Financial Perspective (2007-2013), according to its conclusion (February 2007), the Croatian Government identifi ed priority programmes for 2007 and 2008 with the corresponding responsible institutions at a national level. A new and updated Government Conclusion has been prepared and has been adopted in late 2008. In practice, due to the high concentration of quality project ideas across the Member States to be fi nanced by various Community Programmes, it has been crucial to evaluate the costs and benefi ts of Croatia’s participation within each Community Programme to ensure intensive and continuous Community Programmes promotion so that Croatia can receive the best return for invested national funds through the projects awarded.

79 European Funds for Croatian Projects

The diagram below shows the procedure for setting the legal and administrative conditions for participation in Community Programmes.

Figure 11. Description of participation process in Community Programmes in Croatia

50 Ofﬁ cial Gazette (OG) International Agreements No. 6/2005 80 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

COMMUNITY PROGRAMMES ON THE beneﬁ ts and explain implementation rules and GROUND – IMPLEMENTATION ASPECTS procedures.

Once Croatia is legally entitled for a Community How to apply? Programme, a specifi c operational mechanism is then established to allow for the participation of interested Community Programmes are implemented through organisations and individuals. This means the calls for proposals or public procurement. creation of the necessary implementation structures Each Community Programme has a programme for programme management. In most cases, the guide providing detailed information on the eligibility benefi ciary country authorises a national public criteria for each of the programme’s actions. body, usually a particular administrative structure The responsible national institution or European within a ministry, to take over the responsibility and Commission service manages the running of the organise the functioning of the relevant programme. programmes. They also manage the budget and set In some cases, the European Commission services priorities, targets and criteria for the programmes operate as managing authorities for all benefi ciary on an ongoing basis, following consultation with the countries for the entire programme or part of it (the programme committees. Furthermore, they guide so called centralised measures within a programme). and monitor the general implementation, as well For most of the Community Programmes there is a as following-up and evaluating the programmes at legal requirement to establish a National Contact European level. Point for the specifi c implementation agency of the benefi ciary country, and particularly in Croatia. The websites of the National Contact Points contain a wealth of practical information on the The role of the National Contact Point includes: specifi c programmes: funding opportunities, calls ● provision of information about the programme for proposals, supporting documents, etc. It is to Croatian citizens, including financial support advisable to check regularly for updated information options and relevant mechanisms, on funding possibilities. ● facilitating the participation in the programme of the greatest number of Croatian professionals To be eligible, a grant application must be submitted and operators, via the relevant application form, by the stated ● assisting potential candidates with contact and deadline, and by a ‘legal person’ established in one exchange of information among the various of the participating countries. The applicant must fulfi l national institutions giving support to the the requirements for eligibility as a benefi ciary. The sector. application must also respect the specifi c eligibility In practice these roles are carried out through: criteria for the particular action of the programme. ● organising annual seminars (information days) Usually, there are four stages in the project on the programme in Croatian towns and application and selection procedure: eligibility check, evaluation, selection and, for successful cities, applications, the notifi cation of award decisions. ● arranging individual advisory meetings with During the eligibility check, applications are beneficiaries, assessed to see if they comply with all the eligibility ● providing technical assistance to potential criteria, and do not confl ict with the exclusion criteria. programme beneficiaries, Grants are awarded based on the selection criteria ● maintaining and regularly updating websites and the available fi nancial resources. with all relevant information on the programme, calls for tender and other related information, Although the “entry ticket” is paid at programme ● maintaining and regularly updating the Partner level, individual projects (if selected) have to be Search Database aimed at both national co-fi nanced by individual benefi ciaries, according and international programme operators in to the rules set by a particular call for proposals. order to assist potential candidates establish A major feature of the projects, fi nanced by partnerships, Community Programmes, is also the so called ● preparing and distributing information and partnership principle – in other words, the European promotional material about the programme, Commission is encouraging the cooperation and ● organising joint events with representatives exchange of experience with other institutions and from different fields e.g. private and public organisations in different Member States. cultural organisations. In general, participation in Community Programmes A comprehensive overview of the Community is project based. As already mentioned, each Programmes with the already legally established administrative body coordinating a Community participation of Croatia and those Community Programme or a part of it at a national or EU level, Programmes soon to be eligible to Croatian has an obligation to inform potential benefi ciaries applicants is shown in Table 35. about the programme – to promote programme 81 European Funds for Croatian Projects

Table 35. Community Programmes in Croatia at a glance

Budget Type of participation No Community Programmes Period (EUR In short Universities, of Croatia Businesses Individua million) Research - - SMEs researche Centers

Community Programmes in 1. FP 7 - Seventh Framework programme for Research and Technological 2007-2013 50 512 Enchancing research and innovation capacity across the ■■■ which Croatia participates Development EU, supporting researchers and their ideas, cooperating as per signed across borders. Memoranda of Understanding 2. CIP - Competitveness 2) Enterpreneurship and Innovation Programme 2 172.78 Innovation activities (including eco-innovation), better ■■■ and Innovation access to ﬁ nance and delivery of business support services Framework to SMEs. It also encourages a better take-up and use Programme of information and communications technologies, use of 3. 3) Intelligent Energy Europe 720 renewable energies and energy efﬁ ciency. ■■ 2007-2013

4. 4) Information and Communication Technologies Policy 730 ■■ Support Programme

5. PROGRESS - Community Programme for Employment and Social Solidarity 2007-2013 657.59 Employment incentives, anti-discrimination, gender equality, social inclusion.

6. Media 2007 2007-2013 755 Promoting mutual knowledge and understanding with the ■ objective of preserving and enhancing European cultural diversity and audiovisual heritage.

7. Culture 2007-2013 2007-2013 400 Enhancing cultural cooperation between European artists, cultural operators and cultural institutions

8. Europe for citizens 2007-2013 215 Contributing to intercultural dialogue and mutual understanding, communicating with EU citizens and fostering civic participation.

9. Civil Protection Financial Instrument 2007-2013 189.8 Providing better and quicker responses in force majore ■■ accidents.

10. Public Health Programme 2008-2013 322 Protecting citizens from risks and threats that are beyond ■■ the control of individuals.

11. Marco Polo II 2007-2013 400 Connecting different modes of freight transport. Cleaner ■ environment and less congestion on the roads. (public and state owned companies)

12. IDABC - Interoperable delivery of European 2005 - 2009 148.7 Promoting the establishment of pan-European E-Government services to Public Administrations, Businesses and Citizens eGovernment services and the development of underlying telematic networks."

13. Fiscalis 2013 2008-2013 175.3 Closer cooperation amongst tax authorities. Fight against tax fraud and better application of the existing rules.

14. Customs 2013 2008 - 2013 323.8 Ensuring safety and security of EU citizens, facilitating legitimate trade while preventing unfair and illegal trade.

Community Programmes 15. EURATOM 2007-2011 2 751 Support to nuclear research and training activities. ■ for participation in which Croatia aims to conduct 16. Safer Internet 2009 - 2013 2009-2013 55 Promotion of safe Internet use. ■■ negotiation in order to sign Memoranda of 17. Lifelong Learning Programme 2007-2013 6 970 Create mobility and stronger links among education and ■ Understanding training institutions.

18. Erasmus Mundus 2009-2013 950 Promoting development of Centres of Excellence (joint ■ Masters programmes) and scholarships.

19. Youth in Action 2007-2013 885 Promoting active participation of young people in civic society, enhancing solidarity and intercultural dialogue.

20. Community Mechanism for Civil Protection 2007 - 2013 198.8 The aim is to facilitate co-operation in civil protection assistance interventions in the event of major emergencies which may require urgent response actions.

21. Civil Justice - part of the Framework Programme Fundamental Rights and Justice 2007-2013 106.5 Extensive judicial cooperation in "criminal" and "civil" and "commercial" matters, respect for fundamental rights, Community Programmes 22. Criminal Justice - part of the Framework Programme Fundamental Rights and Justice 2007-2013 199 combatting violence and preventing the use of drugs. in which Croatia aims to participate without 23. Hercule II 2007-2013 98 525 Support for actions aiming to protect the Community's ■ signing Memoranda ﬁ nancial interest of Understanding. Negotiations for preparation and signing Memoranda 24. Pericles 2007-2013 7 Establishing a framework to support measures to protect of Understanding for the euro against counterfeiting. these programmes can be initiated if necessary.

82 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Potential Beneﬁ ciaries - Indicative, depending on individual Calls for proposals/Call for tenders

Employment Responsible Institution Regional, National Public Associations - Chamber National Contact Point in Croatia: al National agencies Individuals/ Judiciary in Croatia Local Statistics Media Institutions, of Commerce, Trade NGOs ers Authorities Labour Experts Institutions Authorities Ofﬁ cies Agencies Unions ofﬁ cies Ministry of Science, Education and Sports Gordana Prutki - Pečnik, Coordinator of NCP Radovan Fuchs, State Secretary Tel: +385 1 4594 364 www.mzos.hr e-mail: [email protected]

■ ■ Ministry of Economy, Labour and Enterpreneurship Zoran Žulj Tajana Kesić Šapić, State Secretary Tel: +385 1 6109 225 www.mingorp.hr e-mail: [email protected]

■ ■ Ministry of Economy, Labour and Enterpreneurship Domagoj Validžić Leo Begović, State Secretary Tel: +385 1 6109 579 www.mingorp.hr e-mail: [email protected]

■ Central State Administrative Ofﬁ ce for e-Croatia Mario Selnik Ivana Andrijašević, Secretary of Cabinet Tel: +385 1 6303 420 http://e-hrvatska.hr e-mail: [email protected]

■■■■■ ■ ■Ministry of Economy, Labour and Enterpreneurship Katarina Ivanković Knežević Vera Babić, State Secretary Tel: +385 1 6106121 www.mingorp.hr e-mail: [email protected] Gordana Dragičević e-mail: [email protected]

Ministry of Culture Hrvatski audiovizualni centar, Nina Obuljen, State Secretary Martina Petrović www.min-kulture.hr Tel: +385 1 4655-434 e-mail: [email protected]

■■■Ministry of Culture Anja Jelavić & Sandra Belko Nina Obuljen, State Secretary Tel: +385 1 48 66 334/326 www.min-kulture.hr e-mail: [email protected]

■ ■■Ofﬁ ce for Cooperation with NGOs Marina Buza Vidas Igor Vidačak, Head of Ofﬁ ce Tel: +385 1 6106500 www.uzuvrh.hr e-mail: [email protected]

■ ■■State Directorate for Protection and Rescue Tamara Kopal Damir Trut, Director Tel: +385 1 3650 057 www.duzs.hr e-mail: [email protected]

■ ■ Ministry of Health and Social Welfare Dunja Skoko Poljak Ante Zvonimir Golem, State Secretary Tel: +385 1 4607-351 www.mzss.hr e-mail: [email protected]

Ministry of Sea, Transport and Infrastructure Lukša Čičovački Branko Bačić, State Secretary Tel: +385 1 6169 027 www.mmpi.hr e-mail: [email protected]

■■ ■ Central State Administrative Ofﬁ ce for e-Croatia Mario Selnik Ivana Andrijašević, Secretary of Cabinet Tel: +385 1 6303 420 http://e-hrvatska.hr e-mail: [email protected]

■ Ministry of Finance Tax Administration Vladimira Ivandić, Director Dubravka Sekulić Grgić www.mﬁ n.hr Tel: +385 1 4809 218 e-mail: [email protected]

■ Ministry of Finance Customs Administration Vladimira Ivandić, Director Miroslav Lučić www.mﬁ n.hr Tel: +385 1 6102 405 e-mail: [email protected]

■ Ministry of Science, Education and Sports Loredana Maravić Radovan Fuchs, State Secretary Tel: +385 1 4594 455 ■ www.mzos.hr e-mail: [email protected]

■ ■ Ministry of Science, Education and Sports Loredana Maravić Radovan Fuchs, State Secretary Tel: +385 1 4594 455 www.mzos.hr e-mail: [email protected] ■ Tina Šarić, Agency for Mobility and EU Programmes, Acting Director, Tel: +385 1 5005 635 e-mail: [email protected]

■ ■ Ministry of the Family, Veterans' Marija Galović, Tina Šarić Affairs and Intergenerational Solidarity Tel: +385 1 2308 510 Stjepan Adanić, State Secretary e-mail: [email protected] www.mobms.hr

■ ■ State Directorate for Protection and Rescue Tamara Kopal Damir Trut, Director Tel: +385 1 3650 057 www.duzs.hr e-mail: [email protected]

■ ■ Ministry of Justice Nataša Mirić Marina Dujmović Vuković, State Secretary Tel: +385 1 3710 776 ■ ■ www.pravosudje.hr e-mail: [email protected]

■■■Ministry of Finance Mirjana Jurić Vladimira Ivandić, Director Tel: +385 1 4591 385 www.mﬁ n.hr e-mail: mirjana.juric@mﬁ n.hr

■ Ministry of Internal Affairs Berislav Mance Filip Dragović, Assistant Minister Tel: +385 1 6122-697 www.mup.hr e-mail: [email protected]

83 European Funds for Croatian Projects

COMMUNITY PROGRAMMES IN WHICH CROATIA PARTICIPATES AS PER SIGNED MEMORANDA OF UNDERSTANDING

PROGRAMMES IN THE FIELD OF RESEARCH AND TECHNOLOGICAL DEVELOPMENT

1. Seventh Framework Programme for Research and Technological Development (FP7)

Institution responsible for programme implementation:

Ministry of Science, Education and Sports: http://www.mzos.hr

This is the largest Community Programme with a budget of over EUR 50 billion for the seven-year period, 2007- 2013. FP7 is the EU's ﬁ nancial instrument to ﬁ nance research and development in Europe and beyond. The programme is established to help the EU to achieve its ambitious goal set out in the Lisbon agenda, in particular to make the Union the most competitive and dynamic knowledge-based economy in the world by 2010. The strategy is based on three pillars, the so-called knowledge triangle: Research, Innovation and Education.

FP7 supports research and development but it is not only pure research that is funded. FP7 is composed of four speciﬁ c sub-programmes, each supporting different types of actions related to research and development, e.g. actions aiming to support or coordinate research, enhance research capacities, or building and maintaining networks. Support is also available for frontier research activities and for the mobility of researchers.

FP7 as the largest Community Programme has a complex structure and a certain set of rules for participation. These rules and requirements depend on the type of projects and activities that the applicants intend to undertake, and are clearly deﬁ ned in the relevant guidance documents for applicants.

Scope and content

Being a programme aimed at covering the broad In addition to these four specifi c programmes, the objectives of the EU Research and Technological Joint Research Centre is allocated a certain budget Development (RTD) policy, FP7 is divided into four to carry out non-nuclear actions. categories referred to as specifi c programmes: More than half of the total budget of FP7 is allocated ● Cooperation: Supports transnational to 10 thematic areas under the Cooperation specifi c collaborative research by strengthening the programme: Health, Food, ICT, Nanotechnologies, competitiveness of European industries. Energy, Environment, Transport, Socio-economic ● Ideas: Supports frontier research by financing sciences, Space and Security. investigator-driven research projects carried out across all fields by individual teams. ● People: Supports the training, mobility and career development of researchers. ● Capacities: Supports the enhancement and optimal use of research and innovation capacities throughout Europe.

84 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Figure 12. Thematic areas of FP7- Cooperation

Who can participate?

A standard FP7 call for proposals would be directed To fully appreciate the entire programme and its towards relevant bodies including universities, operation it’s advised to read the offi cial FP7 web research centres, businesses, in particular small and site. Once the programme structure and principles medium-sized enterprises or individual researchers, of the thematic areas are understood, the next from several Member States and third countries. step should be a check of the appropriate calls Project consortia could include complementary for proposals relevant to the area of interest (i.e. members from industry and academia. In most Energy, Environment, Agriculture, Transport, etc.). cases the involvement of at least 3 different bodies based in different Member States or associated A variety of essential and useful documents Candidate Countries is required for participation in are available on the web pages where calls are the programme. announced. Among these documents, the Work Programme of the respective thematic area is of How to participate? particular importance since it further specifi es all those sub-topics, within which the applicant can Those individuals and organisations intending choose to develop a project. The second crucial to participate in FP7 through the submission of document is the Guide for Applicants, which covers project proposals can do so in response to "calls for the rules and specifi es the guidelines on how to fi ll proposals" when announced on the programme’s in the parts of the project proposal. offi cial web site51. 51 http://cordis.europa.eu 85 European Funds for Croatian Projects

In addition, the responsible body at national level, Contact Points, for further information and tailored namely the Ministry of Science, Education and advice as shown in Table 36. Sports in Croatia, via the web-site, directs those who would like to participate, to the relevant National

Table 36. National Contact Points per FP7 priorities

National Contact Points per FP7 priorities: Name and contact details:

Gordana Prutki – Pečnik, NCP Coordinator Energy, Environment, Regional, SME, Information Tel: +385 1 4594 364 and Communication Technologies Fax: +385 1 4594 316 e-mail: [email protected]

Damir Jeličić Nanosciences, Materials, Production Technologies Tel: +3851 4594 457 (NMP NCP), INCO, Infrastructures, Transport and Fax: +3851 4594 316 Aeronautics e-mail: [email protected]

Lana Žutelija Food, Agriculture and Fisheries and Biotechnology Tel: +3851 4594 467 (FAB NCP), Joint Research Centre (JRC NCP), Fax: +3851 4594 316 EURATOM (EURATOM NCP) e-mail: [email protected]

Tanja Ivanović, Tel: +3851 4594 352 Health Fax: +3851 4594 316 e-mail: [email protected]

Suzana Karabaić Tel: +3851 4594 362 People (Marie Curie Fellowships), Ideas Fax: +3851 4594 316 e-mail: [email protected]

Lada Benzon Socio-Economic Sciences&Humanities (SSH NCP), Tel: +3851 4594 361 Science and Society, Security, Space Fax: +3851 4594 316 e-mail: [email protected]

Jennifer Mary Kursan Tel: +3851 5494 735 Finance Fax: +3851 5494 720 e-mail: [email protected]

Goran Zeković Tel: +3851 6106 559 Legal issues Fax: +3851 6112 017 e-mail: [email protected]

86 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Useful links:

Community Research and Development Information Service: http://cordis.europa.eu

European Commission, Research and Development Directorate-General for more information on European Research and Development policy: http://ec.europa.eu/research/index_en.cfm

The Research and Development Directorate-General’s research enquiry service: http://ec.europa.eu/research/index.cfm?pg=enquiries

Joint Research Centre: http://ec.europa.eu/dgs/jrc/index.cfm

Croatian Technology Institute – FP7: https://www.hit.hr

Here is an example of a project in the area of Research and Technological Development (RTD) policy, implemented in Croatia under CARDS 2003 National Programme.

Project: CARDS 2003 Intellectual Property Infrastructure

Budget: EUR 0.6 million

Objectives and results: The project aimed at increasing the commercial exploitation of the Croatian Research and Development sector, by developing an intellectual property system in line with the EU acquis and with EU models, by supporting the institutions responsible for intellectual property issues, as well as by implementing trainings and awareness-raising activities.

Who beneﬁ ted from the project? The European Union’s main project partner has been the Ministry of Science, Education and Sports of the Republic of Croatia, but this project also involves the State Ofﬁ ce for Intellectual Property and a number of partners from the Croatian Innovation Community (Ruđer Bošković Institute, Brodarski Institute, University of Zagreb, University of Rijeka, Technology Development Centre Osijek Ltd)

87 European Funds for Croatian Projects

PROGRAMMES IN THE FIELD OF COMPETITIVENESS AND INNOVATION

2. – 4. Competitiveness and Innovation Framework Programme

InstitutionInstitution responsibleresponsible fforor the overall pprogrammerogramme implementation:implementation:

Ministry ooff Economy, LabourLabour andand Entrepreneurship:Entrepreneurship: hhttp://www.mingorp.hrttp://www.mingorp.hr

ResponsResponsibleible bodbodiesies iinn CroatCroatiaia per specspeciiﬁ c area of the pprogramme:rogramme:

EEntrepreneurshipntrepreneurship andand innovation programme: MinistrMinistryy of Economy,Economy, Labour and EntrepreneurshipEntrepreneurship hhttp://www.mingorp.hrttp://www.mingorp.hr

IIntelligentntelligent energy – Europe Programme: MinistrMinistryy ofof Economy,Economy, LabourLabour andand Entrepreneurship:Entrepreneurship: hhttp://www.mingorp.hrttp://www.mingorp.hr

IICTCT PolicyPolicy Support Programme (ICT(ICT PSP):PSP): CCentralentral StateState AdministrativeAdministrative Ofﬁ ce forfor e-Croatia:e-Croatia: hhttp://e-hrvatska.hrttp://e-hrvatska.hr

The Competitiveness and Innovation Framework Programme (CIP) aims to encourage the competitiveness of European enterprises. With small and medium-sized enterprises as its main target, the programme supports innovation activities (including eco-innovation), provides better access to ﬁ nance and delivers business support services in the regions.

It also encourages a better take-up and use of information and communication technologies, thus helping to develop the information society. In addition it promotes the increased use of renewable energy and energy efﬁ ciency. The Competitiveness and Innovation Framework Programme is designed to help achieve the objectives of the EU Lisbon Strategy with reference to growth and jobs.

Scope and content Entrepreneurship and Innovation Programme (EIP) covers: CIP is divided into three operational programmes, being its main pillars: ● Financial Instruments service providing access ● Entrepreneurship and Innovation Programme to finance for SMEs; (EIP) ● Business support services delivered through a ● Information Communication Technologies network of regional centres; Policy Support Programme (ICT PSP) ● Innovation projects (regarding sectors, clusters, ● Intelligent Energy Europe (IEE) networks, technology transfer, services), including eco-innovation; ● Policy analyses, development and coordination which encourages entrepreneurship and innovation.

88 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Intelligent Energy Europe (IEE) Information Communication Technologies Policy Support Programme (ICT PSP) Promotes actions in the following main areas: ● Energy efficiency and rational use of resources ICT PSP supports actions stimulating innovation (SAVE), e.g. specific measures in industry and competitiveness through the wider uptake and construction for energy using products; and best use of ICT by citizens, governments and legislative measures, etc. businesses. ● New and renewable energy sources (ALTENER), e.g. support for integration of new and renewable energy sources; legislative Who can participate? measures, etc. ● Energy efficiency and new and renewable The Competitiveness and Innovation Framework energy resources in transport (STEER), e.g. Programme is open to various institutions in the support for energy efficiency and diversification beneﬁ ciary countries, e.g. research centres, public in transport, renewable fuels; legislative bodies, SMEs, agencies, chambers of commerce. measures, etc.

Two main types of projects can be funded: ● Promotion and Dissemination Projects, and ● Market Replication Projects.

Useful links:

Competitiveness and Innovation Framework Programme: http://ec.europa.eu/cip/index_en.htm

Competitiveness and Innovation Framework Programme Call for proposals: http://ec.europa.eu/energy/intelligent/call_for_proposals/index_en.htm

Expert database: http://ec.europa.eu/information_society/activities/ict_psp/cf/expert/login/index.cfm

Partners database: http://ec.europa.eu/information_society/activities/ict_psp/cf/partner/login/index.cfm

Ministry of Economy, Labour and Entrepreneurship – IEE: http://www.mingorp.hr/default.aspx?id=1384

Central State Administrative Ofﬁ ce for e-Croatia – ICT PSP: http://www.e-hrvatska.hr/cip-ict/index.html

89 European Funds for Croatian Projects

To get a better idea of the programme, here is a good example from the CARDS 2004 National Programme, which supported the project “Improving Information to the Croatian Business Community”

Budget: EUR 1,3 million

Objectives and results: The project has aimed to improve the business climate in Croatia by developing tools to assess the impact of legislative changes on Croatian companies and by improving the dissemination of information to businesses about these changes. The project has concentrated its activities on small and medium-sized enterprises (SMEs), which make up about 99% of all businesses in Croatia. The project has covered legislative changes in eight key ﬁ elds which have a signiﬁ cant impact on Croatian businesses: consumer protection, environmental protection, standards for agricultural products, standards for industrial products, public procurement, state aid, competition policy, intellectual property rights.

Who has beneﬁ ted from the project? The main partners in the implementation of the project are: the Entrepreneurship Directorate of the Ministry of Economy, Labour and Entrepreneurship, the Croatian Agency for SMEs (HAMAG), the Croatian Chamber of Economy (HGK), the Croatian Chamber of Trades and Crafts (HOK), the Croatian Employers' Association (HUP). Additionally, the BIZimpact project has worked closely with other public and private organisations involved in supporting SME development such as ministries, agencies and business associations at a national and regional level52.

COMMUNITY SOCIAL ACTION IN CROATIA

5. PROGRESS – Community Programme for Employment and Social Solidarity

InstitutionInstitution resresponsibleponsible fforor the overall pprogrammerogramme iimplementation:mplementation:

MinistryMinistry ofof Economy,Economy, LabourLabour andand Entrepreneurship:Entrepreneurship: http://www.mingorp.hrhttp://www.mingorp.hr

ResponsibleResponsible bodies in Croatia pperer sspecipeciﬁ c area ofof the pprogramme:rogramme:

□ EmpEmployment:loyment: Ministry ooff Economy, LabourLabour andand Entrepreneurship:Entrepreneurship: http://www.mingorp.hrhttp://www.mingorp.hr

□ Croatian EmploymentEmployment Service:Service: http://www.hzz.hrhttp://www.hzz.hr

□ Social inclusion and protection:protection: MinistryMinistry of Health and Social Welfare: http://www.mzss.hrhttp://www.mzss.hr

□ WorkingWorking conconditions:ditions: Ministry ofof Economy, LabourLabour andand Entrepreneurship:Entrepreneurship: http://www.mingorp.hrhttp://www.mingorp.hr

□ Non-discrimination:Non-discrimination: OfOfﬁ ce forfor Human Rights:Rights: http://www.ljudskaprava-vladarh.hr/default.asphttp://www.ljudskaprava-vladarh.hr/default.asp

□ Gender equality:equality: Ofﬁ ce for Gender Equality:Equality: http://www.ured-ravnopravnost.hrhttp://www.ured-ravnopravnost.hr

52 For further information: http://www.bizimpact.hr 90 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

The Community Programme for Employment and Social Solidarity - PROGRESS has been established to fi nancially support the implementation of the objectives of the European Union in the fi elds of employment and social affairs. European citizens expect the EU to strengthen the social dimension of Union policies so that they can deliver growth and more jobs, whilst at the same time, poverty and social exclusion are gradually overcome. In this context PROGRESS is set up to accompany benefi ciary states in their efforts to promote more and better jobs and equal opportunities for all.

Scope and content

The EU carefully designed the new programme to ● Training of legal and policy practitioners; support this policy development and implementation ● Creation of networks of national experts, such in ﬁ ve areas: as legal experts, exchanging and discussing issues raised by EU employment law and its ● Employment application; ● Social inclusion and protection ● Funding by EU networks for NGOs fighting ● Working conditions social exclusion and discrimination on grounds ● Non-discrimination of racial origin, age and disability or promoting ● Gender equality gender equality; ● Public awareness campaigns of EU social and PROGRESS will fund three types of actions: employment policies and legislation. ● Analysis; ● Mutual learning, awareness and dissemination; Who can participate? ● Support for the main participants. Participation in PROGRESS may include: It focuses on activities with a strong European dimension. These activities are, in general, designed ● Regional and local authorities; to inform on policy analysis and development. In ● Employment agencies and labour offices; this respect, PROGRESS differs from the European ● National statistics offices; Social Fund, which invests in the implementation ● Experts and advisors on assessment; of employment and social inclusion policies in the ● Media; Member States. ● NGOs, mostly those which are part of European networks; social partners. Examples of what PROGRESS can fund: ● Europe-wide studies, such as research on health and safety at work; ● Collecting statistics on the number of workplace accidents and diseases, compiling surveys on labour, and dissemination of the results;

Useful links:

PROGRESS web page: http://ec.europa.eu/employment_social/progress/intro_en.htm

For information on calls for tender and grants: http://ec.europa.eu/employment_social/emplweb/tenders/index_en.cfm

91 European Funds for Croatian Projects

Two further examples, shown below, identify projects in the area of Employment and Social Solidarity, ﬁ nanced by the CARDS programme

Programme: CARDS 2002 – Local Partnerships for Employment

Budget: EUR 0.9 million

Objectives and results: The project was implemented in the counties of Zadar, Šibenik-Knin, Sisak-Moslavina and Vukovar-Srijem. The speciﬁ c objectives aimed to contribute to the development goals, as outlined in the Regional Operational Programmes by using the appropriate Human Resource Development (HRD) measures. That meant the establishment and promotion of a structure in each project region - consisting of local partners - which was capable of designing, applying, managing and monitoring HRD projects and measures according to EU standards and in line with the National Employment Strategy. The project results reported were an improved labour market knowledge at county level, an increased ability to foster HRD at county level, a raised awareness of European Social Fund (ESF) principles and mechanisms in all 4 counties, a reduced unemployment rate at county level, and an increased awareness of ESF rules and procedures among HRD regional policy actors.

Who has benefi ted from the project? The project benefi ciary and main partner is the Croatian Employment Service (CES) both central offi ce and regional offi ces, as well as regional and local authorities of the counties involved and local people given the opportunity to have easier access to employment.

Programme: CARDS 2004 - Local Partnerships for Employment - Phase 2

Budget: EUR 1,5 million

Objectives and Results: The wider objective of this project was to reduce unemployment by strengthening the capacity of local participants to design and implement training and active labour market measures within the framework of a local partnership approach using European Social Fund (ESF) procedures. The speciﬁ c objective referred to the regional operative goals as outlined in the Regional Operational Programmes (the multi annual county programming documents) of 4 counties (Brodsko-posavska, Karlovačka, Ličko-senjska, and Požeško-slavonska) to be complemented by appropriate human resource development measures, taking into account the methodology developed through the CARDS 2002 "Local Partnerships for Employment" project. The results have been the following: labour market knowledge at county level has been improved, the ability to foster Human Resource Development at county level has been increased, awareness of ESF principles and mechanisms among local counterparts in all 4 counties has been raised – local partnerships being the principal approach to planning and implementation, local partnerships have been formed in each county and their members properly trained in ESF principles and mechanisms, through local partnership projects in all 4 counties active labour market measures have been designed and successfully implemented, meeting their activity output indicators, awareness of ESF rules and procedures has been raised among HRD regional policy participants.

Who has benefi ted from the project? The primary benefi ciary has been the Croatian Employment Service both central offi ce and regional branch offi ces, regional and local authorities of Brodsko-posavska, Karlovačka, Ličko-senjska, and Požeško-slavonska and local people given the opportunity to have easier access to employment.

92 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

PROGRAMMES IN THE FILED OF CULTURE AND MEDIA

6. MEDIA 2007

Institution responsible for programme implementation:

Ministry of Culture: http://www.min-kulture.hr

MEDIA 2007 is the EU support programme for the European audiovisual industry. It provides co-funding for training initiatives for audiovisual industry professionals, for the development of production projects (feature ﬁ lms, television drama, documentaries, animation and new media) as well as the promotion of European audiovisual works.

Scope and content

The MEDIA 2007 Programme focuses on the Who can participate? initial and fi nal phase of the audiovisual process, e.g. developing a fi lm scenario or developing a The programme is developed to assist companies production project as well as the promotion and and professionals from the audiovisual industry. distribution of fi lms and audiovisual products. The available programme budget does not allow for the funding of production costs. As part of the promotional activities MEDIA 2007 is able to support the organisation of fi lm festivals.

Useful links:

MEDIA 2007: http://ec.europa.eu/comm/avpolicy/media/index_en.html

93 European Funds for Croatian Projects

7. CULTURE 2007-2013

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

MinistryMinistry of Culture:Culture: http://www.min-kulture.hrhttp://www.min-kulture.hr

The European Union is very active in the fi eld of culture. It encourages co-operation across countries in Europe and complements their actions in the fi eld of culture, while respecting their national and regional diversity. The programme Culture 2007 provides grants to cultural co-operation projects in all artistic and cultural fi elds: performing arts, plastic and visual arts, literature, heritage, cultural history, etc.

Scope and content

The Culture Programme aims to achieve three main communication with EU institutions, participate in objectives: the public debate on cultural issues, and act as European cultural ambassadors. ● to promote cross-border mobility of those working in the cultural sector; ● to encourage the transnational circulation of 3rd strand: Support for analysis and dissemina- cultural and artistic output; tion activities ● to foster intercultural dialogue. This strand supports the collection and dissemination To achieve these objectives, the programme of information about various cultural activities and supports three strands of activities: cultural actions; projects in order to raise awareness of the Culture European-level cultural bodies; and analysis and programme and its activities. dissemination activities.

1st strand: Support for cultural actions Who can participate?

This strand enables a wide range of cultural The EU Culture Programme funds projects of organisations from various countries to co-operate cultural operators and institutions, e.g. cultural on cultural and artistic projects, such as: centres, libraries, theatres, music schools, music associations, museums, galleries, writers' ● Multi-annual co-operation projects, running associations, festivals, publishers, cultural units of over a period of three to five years; regional and local bodies, and individuals working ● Co-operation measures, running over a in the culture sector. maximum period of two years; ● Special measures, which relate to high-profile actions of considerable scale and scope, for How to participate? example, support for European Capitals of Culture. In order to facilitate the Culture Programme implementation across Europe, the European 2nd strand: Support for cultural bodies Commission has established Cultural Contact Points in all participating countries.to ensure the effective This strand supports cultural bodies operating or grassroots dissemination of practical and targeted seeking to operate at European level. It provides information about the programme locally co-ﬁ nancing for the permanent work programmes of such organisations. On such a basis those The Cultural Contact Point for Croatia is a cultural bodies being supported should encourage department established within the Directorate for exchanges between cultural organisations in other International Cultural Co-operation of the Ministry European countries, identify the European artistic of Culture in 2006. The Department is responsible community’s needs, represent the sector in its for the promotion of the EU Culture Programme in Croatia. 94 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Useful links:

Culture programme: http://ec.europa.eu/culture/eac/culture2007/cult_en.html

Ministry of Culture – Culture programme: http://www.min-kulture.hr/ccp/

PROGRAMMES IN SUPPORT OF CIVIL SOCIETY

8. EUROPE FOR CITIZENS

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

Ofﬁ ce for Co-oCo-operationperation with NGOsNGOs:: http://www.uzuvrh.hrhttp://www.uzuvrh.hr

In recent years the European Commission has been increasingly stressing the importance of better information for citizens about European institutions and European issues in general. It was considered of utmost importance, furthermore, to make citizens more aware of their fundamental rights and duties as citizens of the European Union and to stimulate them to become actively involved in the process of European integration, developing a sense of belonging and a European identity. The development of an active European citizenship has been recognized a priority for action. In this respect the Europe for Citizens Programme (ECP) was set up as a continuation of the Active European Citizenship Programme 2004-2006. The aim of ECP is to bring Europe closer to its citizens and to enable them to participate fully in the development of the European Union. Through this programme, citizens have the opportunity to be involved in transnational exchanges and cooperation activities, to contribute to developing a sense of belonging to common European ideals and to encourage the process of European integration.

Scope and content

The Europe for Citizens Programme funds four Action 2. Active civil society for Europe is targeted types of actions: towards Europe-wide civil society organisations, receiving either structural support on the basis of Action 1. Active citizens for Europe iEurope their work programmes or support for trans-national involves citizens directly, either through activities projects. linked to town twinning or through other citizens’ projects. Action 3. Together for Europe supports high visibility events, studies and information tools, Town Twinning projects have become very popular addressing the widest possible audience across across Europe and encompass such activities as: frontiers and making Europe more tangible for its ● Citizens' meetings; citizens. ● Thematic networking of twinned towns; ● Multi-annual projects for networks of twinned Action 4. Active European Remembrance supports towns; the preservation of the main sites and archives ● Pilot projects in the format of Citizens panels. associated with deportation and a commemoration of the victims of Nazism and Stalinism. The last two actions are only recently being developed. 95 European Funds for Croatian Projects

Who can participate?

The programme is open for participation to all notifi cation of award decisions. During the eligibility stakeholders promoting active European citizenship, check, applications are assessed to see if they in particular to local communities, European public comply with all the eligibility criteria, and do not policy research organisations, citizens’ groups confl ict with the excluded criteria. Grants are and other civil society organisations such as non- awarded based on the selection criteria and the governmental organisations and various networks available fi nancial resources. and trade unions.

Who implements the programme? How does it work? The European Commission is ultimately responsible The Europe for Citizens Programme guide provides for the smooth running of the Europe for Citizens detailed information on the eligibility criteria for Programme. It manages the budget and sets each of the programme’s actions. The Education, priorities, targets and criteria for the programme Audiovisual & Culture Executive Agency (EACEA) on an ongoing basis, after consultation with the manages the running of the programme. EACEA’s Programme Committee. Furthermore, it guides and website contains a wealth of practical information monitors the general implementation, follow-up and on the Europe for Citizens programme: including evaluation of the programme at European level. funding opportunities, specifi c calls for proposals, supporting documents, etc. It is advisable to The European Commission relies on the Education, check regularly for updated information on funding Audiovisual and Culture Executive Agency possibilities. responsible for the implementation of most of the actions of the Europe for Citizens programme. It is To be eligible, a grant application must be submitted in charge of the management of the complete life on the relevant application form, by the stated cycle of these projects. Every action or measure deadline, and by a ‘legal person’ based in one of the specifi es whether it is managed by the EACEA or participating countries. The applicant must be a non- by the Commission directly (Directorate-General for profi t organisation and the application must respect Education and Culture). the specifi c eligibility criteria for the particular action in question. The Member States and other participating countries such as Croatia are also to be involved in the There are four stages to the project application and dissemination of information as well as in the overall selection procedure: eligibility check, evaluation, promotion of the Europe for Citizens Programme. selection and, for successful applications, the

Useful links:

Europe for citizens programme: http://ec.europa.eu/citizenship/index_en.html

Programme Guide: http://eacea.ec.europa.eu/citizenship/guide/index_en.htm

Calls for proposals: http://eacea.ec.europa.eu/citizenship/index_en.htm

Projects awarded with the Golden Stars Awards 2007: http://ec.europa.eu/citizenship/best_en.html

Ofﬁ ce for Co-operation with NGOs – Europe for Citizens: http://www.uzuvrh.hr/stranica.aspx?pageID=45

96 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

PROGRAMMES IN THE FIELD CIVIL PROTECTION

9. CIVIL PROTECTION FINANCIAL INSTRUMENT

Institution responsibleresponsible foforr pprogrammerogramme imimplementation:plementation:

State Directorate forfor CivilCivil protectionprotection andand Rescue:Rescue: http://www.duzs.hrhttp://www.duzs.hr

Scope and content

The Civil Protection Financial Instrument serves Who can participate? to support those Member States and Candidate Countries which have signed a Memorandum of Depending on a particular call for proposals, Understanding in their efforts to protect people, the various potential beneﬁ ciaries might be eligible environment and property in the event of natural to participate, for example – public authorities, or man-made disasters. Furthermore, it intends universities, international organisations, NGOs, to facilitate reinforced co-operation between the commercial companies. Member States and Candidate Countries who have signed a Memorandum of Understanding in the ﬁ eld of civil protection.

Useful links:

DG Environment, Civil Protection Financial Instrument: http://ec.europa.eu/environment/civil/prote/cp03_2008_en.htm

97 European Funds for Croatian Projects

PROGRAMMES IN THE FIELD OF HEALTH

10. PUBLIC HEALTH

InstitutionInstitution responsresponsibleible for programme iimplementation:mplementation:

MinistryMinistry ofof HealthHealth andand SocialSocial Welfare:Welfare: http://www.mzss.hrhttp://www.mzss.hr

The Health Programme is the key means by which the EU implements its health objectives at a European level. The full name for the new Health Programme is the Second Programme of Community Action in the Field of Health 2008-2013.

The Second Programme of Community Action in the Field of Health 2008-2013 runs for a 6 year period (from 1 January 2008 to 31 December 2013) and follows the First Programme of Community Action in the Field of Public Health (2003-2008) which ﬁ nanced over 300 projects and other actions.

Croatia’s participation in this programme is expected from 2009.

Scope and content

Each year, a work plan is published which sets out Who can participate? the priority areas and the criteria for funding actions under the new programme. Actions are intended Participation in the Health Programme is open to a to complement the national policies of the Member wide range of organisations, including: States with a European added-value. This means that ● research institutes and universities; they should involve actors from other participating ● public administrations; countries and the results should be applied in other ● non-governmental organisations; countries and regions across Europe. ● commercial firms. The overall aim of the Health Programme is to fi nance actions which contribute to the improvment Different participation rules apply, depending on the and protection of human health. There are different funding scheme of the initiative in question. These types of funding schemes available under the Health are specifi ed in the annual work plan and calls for Programme, depending on the type of action to be proposals are published each year. fi nanced. Each year the work plan details which type of funding scheme is to be used for each action. The aim is to ensure that the objectives are achieved in the most effi cient way possible and with the full collaboration of stakeholders interested in the aims of the programme.

Useful links:

Public Health Programme: http://ec.europa.eu/health/ph_programme/health_programme_en.htm

98 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

11. MARCO POLO II

InstitutionInstitution responsresponsibleible for programme iimplementation:mplementation:

MinistryMinistry ofof thethe Sea, Tourism, TransportTransport andand Development:Development: http://www.mmpi.hrhttp://www.mmpi.hr

The Marco Polo Programme aims to reduce road congestion, to improve the environmental performance of the freight transport system within the Community and to enhance intermodality, thereby contributing to an efﬁ cient and sustainable transport system. To achieve this objective, the programme supports actions in freight transport, logistics and other relevant markets, including motorways of the sea and trafﬁ c avoidance measures.

The participation of Croatia in this programme is expected from 2009.

Scope and content

There are three main action types: ● Modal shift actions, aimed at redirecting as much freight as possible from roads to short sea shipping, rail and inland waterway transport; ● Catalyst actions, directed towards a change in behaviour as regards non-road freight transport within the Union; ● Common learning actions, aimed at improving the knowledge in the freight logistics market and stimulating mutual cooperation. Recently, new themes for projects have been added, in particular "motorways of the sea" and "trafﬁ c avoidance" projects.

Who can participate?

The programme is intended for private and state owned companies.

Useful links:

Marco Polo II: http://ec.europa.eu/transport/marcopolo/home/home_en.htm

99 European Funds for Croatian Projects

12. - 14. OTHER COMMUNITY PROGRAMMES IN WHICH NATIONAL AUTHORITIES IN CROATIA PARTICIPATE AS PER SIGNED MEMORANDA OF UNDERSTANDING

12. IDABC - Interoperable Delivery of European E-Government services to Public Administrations, Businesses and Citizens

The primary beneﬁ ciaries of the IDABC programme are public administrations, in particular national authorities, and European institutions. By providing expertise - a forum for information exchange, funding for IT solutions - IDABC helps administrations improve the efﬁ ciency of their existing networks.

IDABC also offers generic services, common tools and guidelines that facilitate interoperability across European borders. Citizens and enterprises are also increasingly beneﬁ ting from the various IDABC projects by using some of the IDABC networks. In addition, since the IDABC programme carries out its projects on the basis of market- available solutions, IT and service providers can beneﬁ t from the programme by participating in the open calls for tenders. Participation in IDABC is not through submission of project proposals by consortia under open calls, but exclusively through a public tendering procedure managed by the Commission. Thus, public authorities that would like to get funds from IDABC should reply to open calls for public tenders. More information about calls for proposals and calls for tenders is provided in Chapter V.

13. FISCALIS 2013

As a continuation of the Fiscalis 2007 programme, this phase seeks to develop a more reliable and better functioning taxation system in the internal market by encouraging cooperation in the ﬁ eld of taxation. While encouraging better application and understanding of Community taxation law, the programme also seeks to provide information and exchange good practice with Candidate, Potential Candidate and European Neighbourhood Policy countries.

The programme supports the following types of action in the ﬁ eld of taxation policy: □ Develops communication and information-exchange systems, including Common Communications Network/ Common Systems Interface (CCN/CSI), VAT Information Exchange System (VIES), Excise Systems, Excise Movement Control System (EMCS); □ Establishes multilateral controls regarding the tax liability of taxable persons in different participating countries; □ Organizes seminars, project groups and training activities.

The programme is open to Member States, other Candidate and Potential Candidate Countries as well as some partner countries under the European Neighbourhood Policy.

14. CUSTOMS 2013

As the name implies, the Customs 2013 programme extends the life of the Customs 2007 programme through to the end of 2013, incorporating the lessons learned during the previous stage and incorporating new demands. Similar to the 2007 programme, this stage also seeks to simplify customs systems and ensure the security of the markets and its citizens against fraud. The programme will also continue to encourage communication and cooperation among customs ofﬁ cials and ensure actions in harmony with the internal market, Besides including Member States and Candidate Countries in the programme, this stage also invites Potential Candidate Countries and Members of the European Neighbourhood Policy (ENP) to spread cooperation and good practice in customs and trade to other countries.

100 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

COMMUNITY PROGRAMMES IN WHICH CROATIA AIMS TO CONDUCT NEGOTIATIONS IN ORDER TO SIGN MEMORANDA OF UNDERSTANDING

15. EURATOM

InstInstitutionitution resresponsibleponsible fforor pprogrammerogramme iimplementation:mplementation:

Ministry ooff Science, EducationEducation andand Sports: hhttp://www.mzos.hrttp://www.mzos.hr

Euratom’s energy research activities are carried out under the treaty of the same name, which in 1957 established the European Atomic Energy Community (Euratom). Euratom is independent from the European Community (EC) and has its own Framework Research Programme, which is, however, managed by the Community’s institutions.

The target date for the start of Croatia’s participation in this programme is 1st January 2010.

Scope and content

Sustainably developing fusion energy and meeting Who can participate? the requirements of the nuclear fi ssion sector in terms of safety, waste management, effi ciency The potential benefi ciaries are universities, and competitiveness are the main objectives of research centres, scientifi c institutes, researchers this specifi c programme for nuclear research and and experts. training activities.

The Euratom programme, which runs until 2011, is subdivided into two specifi c programmes. The fi rst covers research into nuclear fusion, nuclear fi ssion energy and radiation protection. The second concerns activities by the Joint Research Centre (JRC) in the nuclear energy sphere.

Useful links:

EURATOM in brief: http://europa.eu/scadplus/leg/en/lvb/i23032.htm

EURATOM home: http://cordis.europa.eu/fp7/euratom/home_en.html

101 European Funds for Croatian Projects

16. SAFER INTERNET 2009-2013

InstitutionInstitution responsresponsibleible for programme iimplementation:mplementation:

Ministry ofof Science, EducationEducation andand Sports:Sports: http://www.mzos.hrhttp://www.mzos.hr

The Safer Internet Programme (2009-2013) aims to promote safer use of the Internet and new online technologies, particularly for children, and to ﬁ ght against illegal content and content unwanted by the end-user, as part of a coherent approach by the European Union53.

The target date for the start of Croatia’s participation in this programme is 1st January 2010.

Scope and content Who can participate?

On 27th February 2008 the Commission adopted a The programme will seek to involve and bring proposal for a new Safer Internet Programme. Safer together different stakeholders whose cooperation Internet 2009-2013 builds upon the successful Safer is essential, but who would not necessarily come Internet plus Programme begun in 2005 and will together unless the appropriate structures were put have a budget of EUR 55 million. Encompassing in place. This includes content providers; internet recent communications services from the web, such service providers; mobile network operators; as social networking, the new programme will ﬁ ght regulators; standards bodies; industry self-regulatory not only illegal content but also harmful conduct bodies; national, regional and local authorities such as grooming and bullying. A new action will responsible for industry, education, consumer aim to build up a knowledge base. protection, families, law enforcement, children’s rights and child welfare; and non-governmental At the EU "Education, Youth Affairs and Culture" organisations active in consumer protection, Council from 21-22 May 2008 EU ministers agreed on families, children’s rights and child welfare. a general approach to the new proposal establishing a multi-annual Safer Internet Programme for protecting children using the Internet and other communication technologies.

The programme incorporates four actions: reducing illegal content and tackling harmful conduct online; promoting a safer online environment; ensuring public awareness; and establishing a knowledge base.

Useful links:

Safer Internet: http://ec.europa.eu/information_society/activities/sip/programme/index_en.htm http://www.saferinternet.org/ww/en/pub/insafe/index.htm

53 The ﬁ nal adoption of the new Safer Internet programme is expected in early 2009. 102 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

17. INTEGRATED LIFE-LONG LEARNING PROGRAMME (ILLP)

Institution resresponsibleponsible fforor pprogrammerogramme imimplementation:plementation:

Ministry ooff Science, EducationEducation andand Sports:Sports: htthttp://www.mzos.hrp://www.mzos.hr

Agency forfor MobilityMobility andand EU programmes: hhttp://www.mobilnost.hrttp://www.mobilnost.hr

The new Lifelong Learning Programme 2007-2013 replaces the existing Socrates, Leonardo da Vinci, and eLearning programmes which expired at the end of 2006. The aim of the new programme is to contribute, by emphasising the need for lifelong learning, to the development of the Community as an advanced knowledge society, with sustainable economic development, more and better jobs and greater social cohesion. It aims to foster interaction, cooperation and mobility between education and training systems within the Community, so that they become a world quality reference.

The target date for the start of Croatia’s participation in this programme is 1st January 2010.

Scope and content

The Lifelong Learning Programme is actually an 4. The Grundtvig programme (EUR 358 over-arching structure that is built on four sub- million) addresses all forms of adult education, programmes. Under each of these programmes as well as the institutions and organisations grants and subsidies will be awarded to projects providing or facilitating such education. which enhance the trans-national mobility of individuals, promote bilateral and multilateral These four sub-programmes are joined by what partnerships, or improve quality in education and will be known as a ‘transversal programme’ (EUR training systems through multilateral projects 369 million), which will pursue the following four key encouraging, for example, innovation,. The four activities: sub-programmes are: ● policy cooperation and innovation in lifelong learning; 1. The Comenius Programme (EUR 1,047 ● promotion of language learning; million) addresses the teaching and learning ● development of innovative ICT-based content, needs of all those in pre-school and school services, pedagogies and practice for lifelong education up to the level of the end of upper learning; secondary education, and the institutions and ● dissemination and exploitation of the results of organisations providing such education; actions supported under the Lifelong Learning 2. The Erasmus Programme (EUR 3,114 Programme and previous related programmes, million) addresses the teaching and learning and exchange of good practice. needs of all those in formal higher education, Finally, these actions will be complemented by the including trans-national student placements new Jean Monnet Programme (EUR 170 million), in enterprise, and the institutions and which supports institutions and activities in the ﬁ eld organisations providing or facilitating such of European integration. education and training; 3. The Leonardo da Vinci Programme (EUR 1,725 million) addresses the teaching Who can participate? and learning needs of all those in vocational education and training, including placement Participation is open to educational institutions in enterprise of persons other than students, in Croatia, from pre-school to higher education, as well as the institutions and organisations vocational education and training and adult providing or facilitating such education and education and individuals – students and teachers. training;

103 European Funds for Croatian Projects

Useful links:

Integrated Life-long Learning Programme: http://ec.europa.eu/education/programmes/llp/general/index_en.html

Agency for Mobility and EU programmes: http://www.mobilnost.hr

An example of Croatia’s participation in the area of Life Long Learning can be see under the CARDS 2004 programme.

Project: CARDS 2004 Adult learning

Budget: EUR 1,5 million

Objectives and results: The objective was to promote a modern and ﬂ exible concept of adult learning for Croatia in line with the new labour market requirements, the lifelong learning approach and EU best-practice examples. In general terms, the project focused on what could be achieved through improvements in structured adult education and training provision, adjustment and modernisation of training programmes (with considerable emphasis on basic skills

Who has benefi ted from the project? The primary benefi ciary has been the Agency for Adult Learning and other authorities responsible for education and employment but also the general public has benefi ted from an improved system of adult learning and increased opportunities for employment.

18. ERASMUS MUNDUS

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

Ministry ofof Science, EducationEducation andand Sports: http://www.mzos.hrhttp://www.mzos.hr

Agency forfor MobilityMobility andand EU programmes:programmes: http://www.mobilnost.hrhttp://www.mobilnost.hr

The Erasmus Mundus programme aims to promote the development of higher education systems in the partner countries through a balanced co-operation between higher education institutions in partner countries and Member States of the European Union.

A priority for higher education systems in South-East Europe is the achievement of the objectives of the so-called Bologna Declaration which aims to establish a common European Higher Education Area by 2010. Its objectives include the establishment of a common degree system in Europe (Bachelor, Master, Ph.D.), the introduction of the European Credit Transfer System (ECTS), the strengthening of a European dimension in quality assurance and the removal of obstacles for the mobility of students and staff. Participation in the Bologna Process requires structural reforms of university governance, management and ﬁ nance, in particular the strengthening of the strategic management capacities of universities through institutional integration, efﬁ cient control of standards, and the setting up of a system to test compatibility across faculties or universities.

104 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

Scope and content

The programme supports European top-quality Master’s courses and enhances the visibility and Who can participate? attractiveness of European higher education in third countries. It also provides EU-funded scholarships Potential beneﬁ ciaries are universities proposing for third-country nationals participating in these joint Masters programmes and individuals applying Master’s courses, as well as for EU-nationals for scholarships. studying at partner universities around the world. The target date for the start of Croatia’s participation in this programme is 1st January 2010.

Useful links:

Erasmus Mundus: http://ec.europa.eu/education/programmes/mundus/programme/future_en.html

Agency for Mobility and EU programmes: http://www.mobilnost.hr

An excellent example in Croatia of a mobility programme, being the forerunner of Erasmus Mundus is the TEMPUS III programme.

Background information: Croatia became eligible for Tempus funding in 2000. Although continuing to be university-based, TEMPUS III aims to extend the range of participants beyond the traditional academic community to include policy makers and the civil society at large. In addition, Tempus projects are encouraged to incorporate a regional dimension into their activities.

TEMPUS III objectives: The Tempus programme seeks to contribute to: ● a higher education policy and systems development; ● the reform of higher education governance, management and finance; ● the strengthening of links with the local and regional economy, as well as other university stakeholders; ● curriculum development in priority areas for economic and social transition; ● the promotion of the mobility of students and staff; ● the development of administrative and institutional structures through training of staff from non-academic institutions; ● the strengthening of regional cooperation and networking between higher education institutions in South- East Europe.

The Tempus Programme aims to fund Joint European Projects (JEP), Structural and Complementary Measures (SCM) and Individual Mobility Grants (IMG). There are 3 types of Joint European Projects (JEP): 1. Curriculum Development, focusing on the establishment of new or the revision of existing curricula and study courses, the development and provision of new teaching materials, the introduction of new teaching methodologies, and the retraining of academic staff. 2. University Management focusing on systems and policy development, reform of university governance, administration and ﬁ nance, the introduction of library and management information systems, the strengthening of quality assurance, the introduction of international relations ofﬁ ces, the introduction of the European Credit Transfer System, or the establishment of knowledge and technology transfer centres. 3. Institution Building focusing on strengthening civil society and public administration reform through the development of short cycle training courses for staff from non-academic institutions such as local, regional and national authorities, social partners, professional associations, media, and non-governmental organisations.

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Structural and Complementary Measures (SCM):

1. Structural Measures (SM) supporting the development, acquisition and upgrading of skills and instruments necessary for nation-wide structural reform in higher education and support for its planning, preparation, undertaking and implementation. 2. Complementary Measures (CM) designed to respond to shorter-term needs for dissemination and transfer of good practice and to provide the possibility for targeted actions that may contribute signiﬁ cantly to achieving the objectives of the programme.

Individual Mobility Grants (IMG) providing an opportunity for individuals to visit other countries for a short period of time (1-8 weeks) with the objective of disseminating the results of Tempus projects or networking in a particular area relevant to the Tempus programme.

Results in Croatia: So far, 68 joint European projects were ﬁ nanced (44 Curriculum Development, 14 University Management programmes and 10 Institution Building) as well as 12 Structural and Complementary measures. All Universities in Croatia have participated in various projects within the programme in cooperation with all EU Member States and CARDS countries.

TEMPUS had a strong impact on the internationalisation of Croatian universities (73% of universities are now members of international associations). Progress has also been made in higher education reforms - changes have been made in teaching methods and assessment processes and there has been an increased mobility of teachers and students with valuable experience from abroad. Young university staff have upgraded their qualiﬁ cations and TEMPUS supported them in completing Masters and Doctoral theses.

19. YOUTH IN ACTION

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

Ministry ofof thethe Family,Family, Veterans' AffairsAffairs andand IntergenerationalIntergenerational Solidarity:Solidarity: http://www.mobms.hrhttp://www.mobms.hr

Agency forfor MobilityMobility andand EU programmes:programmes: http://www.mobilnost.hrhttp://www.mobilnost.hr

The Youth in Action (2007-2013) Programme is directed to support young people between 13 and 30 years old with the aim to strengthen soft skills, personal responsibility and support initiatives, including care for others and active participation in civil society on local, national and European levels.

Scope and content

The speciﬁ c objectives of the programme are: capabilities of civil society organisations in the youth field. ● To promote young people's active citizenship ● To promote European cooperation in youth in general and their European citizenship in policies. particular; ● To develop solidarity among young people; To achieve its given objectives the Youth in Action ● To foster a mutual understanding among programme will support the following lines of people through youth; action: ● To contribute to developing the quality of ● Youth for Europe: primarily aims to promote support systems for youth activities and the exchanges amongst young people in order 106 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

to increase their mobility and support youth ● European Cooperation in the Youth Field: initiatives, projects and activities so as to intends to promote cooperation on youth develop young people's citizenship and mutual policy, support for a structured dialogue among understanding. young people and those responsible for youth ● European Voluntary Service: aims to "gear up” policy, as well as building cooperation with young people's participation in different forms international organisations. of voluntary activities within and outside the European Union. Under the programme, natural persons may receive ● Youth of the World: proposes to develop a grants, and depending on the nature of the action, mutual understanding among people in a ﬁ nancial support may take the form of subsidies or spirit of openness. The programme is open scholarships. to projects with neighbouring countries of the enlarged Europe and to cooperation in the youth field with other third countries. Who can participate? ● Youth Support Systems: aims to develop the quality of support structures for young Young persons aged between 13 and 30 years old people. This action helps to promote youth or those active in youth work or youth organisations organisations active at a European level, legally resident in one of the programme or partner in particular the European Youth Forum. It countries. also supports the development of exchange, training and information schemes for young workers.

Useful links:

DG Education and Culture: http://ec.europa.eu/youth/index_en.htm

The Education, Audiovisual and Culture Executive Agency: http://eacea.ec.europa.eu/youth/index_en.htm

Agency for Mobility – Implementing Agency: www.mobilnost.hr

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20. COMMUNITY MECHANISM FOR CIVIL PROTECTION

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

StateState Directorate forfor CivilCivil protectionprotection andand Rescue: http://www.duzs.hrhttp://www.duzs.hr

The main role of the Community Mechanism for Civil Protection is to facilitate co-operation in civil protection assistance interventions in the event of major emergencies which may require urgent response actions. This applies also to situations where there may be an imminent threat of such major emergencies.

Scope and content

The aim is to facilitate co-operation in civil to be mobilised rapidly. Moreover their work needs protection assistance interventions in the event to be well co-ordinated while requiring fl exibility. In of major emergencies which may require urgent order to achieve this, the Mechanism has its own response actions. The Community Mechanism for tools that help to ensure this. Civil Protection has a number of tools intended to facilitate both adequate preparedness as well as effective response to disasters at a community Who can participate? level. In accordance with the principle of subsidiarity, it can The potential benefi ciaries of the Mechanism are provide added-value to European civil protection the civil protection authorities in Croatia. assistance by making support available at the request of the affected country. This may arise if the affected country’s preparedness for a disaster is not suffi cient to provide an adequate response in terms of available resources. By pooling the civil protection capabilities of the participating states, the Community Mechanism can ensure even better protection, primarily of people, but also of the natural and cultural environment as well as property. To enable and ensure an effective delivery of assistance, teams working in emergencies need

Useful links:

DG Environment: http://ec.europa.eu/environment/civil/prote/mechanism.htm

State Directorate for Civil Protection and Rescue: http://www.duzs.hr

108 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

21. CIVIL JUSTICE

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

Ministry ofof Justice:Justice: www.pravosudje.hrwww.pravosudje.hr

The Civil Justice Programme is one of 5 sub-programmes under the framework programme Fundamental Rights and Justice. The Framework programme supports the development of a European Society respecting fundamental rights, ﬁ ghting anti-Semitism, racism and xenophobia, and strengthening civil society.

Scope and content

The framework programme brings together the ● Improve access to justice, promote mutual following sub-programmes: recognition of judgments, lower differences in i) Fight against Violence (Daphne) civil law and enhance the proper administration ii) Drugs prevention and information of justice; iii) Fundamental Rights and Information ● Exchange information regarding each Member iv) Civil Justice State's legal and judicial system with a mind v) Criminal Justice towards mutual understanding; ● Ensure the proper implementation of Union The Civil Justice Programme aims to promote instruments; judicial cooperation in civil matters and the adjustment ● Develop mutual confidence and quality of of Member States’ existing judicial systems to justice; the EU system thereby improving the lives of EU ● Support the training of judicial staff. citizens through access to justice. By requiring that the relevant authorities work together in the area of Civil Justice, the programme seeks to enhance the Who can participate? contact and the exchange of information and good practice between legal, judicial and administrative Public institutions responsible in the mentioned authorities. sectors policies.

The speciﬁ c objectives of the programme, intended for legal practitioners, national authorities, EU citizens and public or private organisations, are to:

Useful links:

DG Justice, Freedom and Security: http://ec.europa.eu/justice_home/funding/civil/funding_civil_en.htm http://ec.europa.eu/justice_home/funding/intro/wai/funding_intro_en.htm

Ministry of Justice: www.pravosudje.hr

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COMMUNITY PROGRAMMES IN WHICH CROATIA AIMS TO PARTICIPATE WITHOUT SIGNING MEMORANDA OF UNDERSTANDING

Community Programmes in which Croatia aims to participate without signing Memoranda of Understanding are shown below. Negotiations for preparation and signing Memoranda of Understanding for these programmes can be initiated if necessary.

22. CRIMINAL JUSTICE

Institution responsible for programme implementation:

Ministry of Justice: www.pravosudje.hr

The Criminal Justice Program, as already mentioned, is one of 5 sub-programmes under the framework programme Fundamental Rights and Justice. The framework programme promotes judicial cooperation in civil, commercial and criminal justice matters.

Scope and content

The objectives of the Criminal Justice Programme European dimension, b) transnational and national are to promote judicial cooperation with the projects implemented by organisations in the Member aim of contributing to the creation of a genuine States, and/or c) activities of non-governmental European area of justice in criminal matters based organisations or other entities pursuing an aim of on mutual recognition and mutual confi dence, to general European interest (including an operating promote compatibility in rules applicable in the grant to co-fi nance expenditure associated with Member States as may be necessary to improve the permanent work programme of the European judicial cooperation. Furthermore, it shall improve Judicial Training Network). contacts and exchange of information and best practice between legal, judicial and administrative authorities and the legal professions (lawyers and Who can participate? other professionals involved in the work of the judiciary), it shall foster the training of members of The programme is destined for inter alia, legal the judiciary, and further improve mutual trust with practitioners, representatives of victims' assistance a view to ensuring protection of the rights of victims services, and other professionals involved in the and of the accused. work of the judiciary, national authorities and citizens of the Union in general. However, bodies The programme shall provide fi nancial support and organisations which are profi t oriented will have through grants and public procurement for a) projects access to the programme only in conjunction with initiated and managed by the Commission with a non profi t oriented or state organisations.

Useful links:

DG Justice, Freedom and Security: http://ec.europa.eu/justice_home/fsj/criminal/wai/fsj_criminal_intro_en.htm http://ec.europa.eu/justice_home/funding/intro/wai/funding_intro_en.htm

110 COMMUNITY PROGRAMMES IN CROATIA AT A GLANCE

23. HERCULE II

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

MinistryMinistry of Finance:Finance: www.mwww.mﬁ n.hrn.hr

The HERCULE II programme promotes activities in the fi eld of the protection of the fi nancial interests of the EU. The resources for the period until 2013 are available only for actions and not for support of organisations. The programme is implemented and coordinated by the European Anti-Fraud Offi ce (OLAF).

Scope and content

The programme is designed to cover 3 types of ● coordination of activities related to the actions: protection of the financial interests of the EU; ● An external anti-fraud training programme ● training and awareness initiatives; involving the police, judicial and customs ● exchanges of specialised staff; authorities as well as research and educational ● development and supply of specific IT tools; establishments; ● exchange of data. ● Financial aid for European Lawyers associations for the protection of the Union’s financial interests, primaril for studies and Who can participate? dissemination of experience; ● Technical assistance to competent law The programme is open for participation to relevant enforcement authorities for anti-fraud public authorities, research and training centres, measures. and NGOs of professionals in the relevant ﬁ eld.

Activities which can be funded include: ● organisation of seminars and conferences; ● promotion of scientific studies and discussions on EU policies in this field;

Useful links:

HERCULE II: http://ec.europa.eu/anti_fraud/programmes/hercule/en.pdf

Ministry of Finance: www.mﬁ n.hr

111 European Funds for Croatian Projects

24. PERICLES

Institution responsibleresponsible fforor pprogrammerogramme imimplementation:plementation:

MinistryMinistry of Internal Affairs:Affairs: www.mup.hrwww.mup.hr

The Pericles programme establishes an exchange, assistance and training programme for the protection of the euro against counterfeiting to Member States which have not adopted the euro as the single currency. The programme is implemented and coordinated by the European Anti-Fraud Ofﬁ ce (OLAF).

Scope and content Who can participate?

The purpose of the programme is to raise awareness National public institutions responsible in mentioned for close cooperation between competent authorities, policies. especially of the EU Member States. Pericles programme contributes to the practical training of police, judicial and ﬁ nancial staff, with regard to the analysis of counterfeit, judicial cooperation and applicable legislation. Promoting closer cooperation between national experts by creating a network of correspondents at national and European level is also within the scope of the programme.

Useful links:

Pericles Programme: http://ec.europa.eu/anti_fraud/programmes/pericles/index_en.html

Ministry of Internal Affairs: www.mup.hr

112

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● A brief overview of the: □ Structural Instruments in support of the Community Cohesion Policy objectives: • European Regional Development Fund • European Social Fund • Cohesion Fund □ European funds in support of the Common Agricultural Policy implementation: • European Agricultural Fund for Rural Development □ European funds in support of the Fisheries Policy implementation • European Fund for Fisheries ● What does Croatia`s experience with IPA signify in the context of preparations for Structural Instruments? ● Examples of successful EU funded projects and project ideas

The funding opportunities upon EU accession are Figure 13 shows the Sectoral Policies (Cohesion, opening a completely new chapter for Croatia, not Common Agricultural Policy and Fisheries Policy), only in terms of scale of available budget but also in policy papers adopted at EU level, and their the range of actions eligible for fi nancing. However, corresponding National Strategic documents to be EU funding should not be seen as a means to itself developed as multi-annual programmes setting the but as a mechanism, as a way to achieve EU wide strategic priorities for particular investments and policy objectives. actions fi nanced under the Structural Instruments, Common Agricultural Policy (CAP) and Fisheries In principle, policy objectives are decided at EU level Funds. To fully understand the reasoning behind within the framework of EU wide strategies which the various fi nancial instruments one has to require certain actions from the Member States and understand the reasoning behind the policy which a defi nition of the long-term priorities at their level is supported through them. Each of the policy areas and in turn the EU makes funds available for use as and corresponding fi nancial instruments shown in tools targeted to implement the planned objectives. the diagram are described below.

Figure 13. Hierarchy of EU policy documents and strategic documents at a national level

European Commission Council

Cohesion Policy CAP/Rural Development Fisheries Policy

Community EU Strategic Guidelines for Strategic Gudielines Strategic Guidelines Rural Development for Sustianable for Cohesion Development of the ﬁ sheries sectors and coastal areas dependent on ﬁ sheries

National Strategic National Rural Development National Strategic Reference Strategy Plans Framework

Operational Programmes

114 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

WHAT IS THE EU COHESION POLICY?

To know more The Cohesion Policy is based on the assumption that redistribution between richer and poorer regions There are a number ofof examples provingproving the majormajor in Europe is needed to balance out the effects of socio-economicsocio-economic disparitiesdisparities whichwhich existexist betweenbetween thethe further economic integration. Around EUR 480 billion differentdifferent regionsregions ofof the Union especiallyespecially followingfollowing has been invested in the „less favoured“ regions the latest enlargements.enlargements. since 1988. Prior to the 2004 enlargment, the main benefi ciaries were Greece, Portugal, Ireland, the InIn FebruarFebruaryy 2008, EUROSTATEUROSTAT (the(the Statistical new East German „Lander“, Italy and Spain. With Offi ce of the EuropeanEuropean Communities) reported the accession of twelve new Member States in 2004 that, of the EU 27, in 2005, the averageaverage regionalregional and 2007, the development gap between regions GDPGDP per inhabitant ranrangedged fromfrom 24%24% in North-East has doubled. As a result, most benefi ciaries of the in Romania to 303%303% in Inner London. Cohesion Policy are now located in Central and Eastern Europe. The other two leadingleading regionsregions in the rankingranking ofof regionalregional GDPGDP per inhabitant in 2005 were the GrandGrand In 2007, the Cohesion Policy was reviewed and DuchyDuchy of LuxembourgLuxembourg (264%(264% of the average)average) and its main objectives were centred upon the Lisbon Brussels in BelgiumBelgium (241%).(241%). The lowest regionsregions Agenda (focusing on innovation, growth, jobs) in the rankingranking were all in Bulgaria,Bulgaria, Poland and and the Gothenburg Goals (aiming at sustainable Romania.Romania. development).

EU Cohesion Policy provisions are stipulated in Why does the EU need a Cohesion Policy? the Treaty on European Union: □ To address regional disparities “…a harmonious, balanced and sustainable □ To improve the functioning of a single market development of economic activities…” throughout □ To promote a stable and sustainable the Union (art 2 Treaty on EU) development of the EU Economic and social cohesion is to be pursued with the aim of “…reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas” (art. 158 Treaty on EU)

Croatia is not yet a Member State of the EU so it cannot take part in the Cohesion Policy and it still doesn’t have access to Structural Instruments at this stage. However, following accession the Structural Funding of the Union will become available in order to help the country achieve economic, social and territorial cohesion.

What is the Lisbon agenda? What are the Gothenburg Goals?

At the Lisbon summit in March 2000, EU leaders set The European Summit held in Gothenburg in June out a new strategy, based on a consensus among 2001 completed the Lisbon Strategy by adding to Member States, to modernise Europe. This became it an environmental dimension. This “third pillar” of known as the Lisbon Strategy, also known as the the Lisbon Strategy, places a new emphasis on the Lisbon Process. The Strategy is focused on growth protection of the environment and the achievement and jobs. The two targets are: total investment of a more sustainable pattern of development. The (public and private) of 3% of Europe’s GDP in the main priorities of this strategy are: area of research and development by 2010 and an □ Combating climate change, employment rate of 70% by the same date (the □ Ensuring sustainable transport options, proportion a percentage of Europe’s working age □ Addressing threats to public health, population in employment). □ Managing natural resources in a more responsible manner.

115 European Funds for Croatian Projects

EU COHESION POLICY OBJECTIVES

During the period 2007-2013 Cohesion Funding is structured along three broad strategic objectives based on the Lisbon Strategy and the Gothenburg Goals, also occasionally known as the Triple-C objectives: Convergence, Competitiveness and Co-operation (see Figure 14).

Figure 14. EU Cohesion Policy Objectives for the period 2007 - 2013

Aims to stimulate growth and employment in the least developed regions (GDP per capita below 75% of the EU average). It highlights innovation and a knowledge- Objective 1 Convergence based society, adaptability to economic and social changes and the quality of the environment and administrative efﬁ ciency.

Aims to reinforce the regions’ competitiveness and attractiveness as Regional well as employment, by anticipating Competitiveness economic and social changes. Covers Objective 2 and Employment all areas of the EU not eligible for the Convergence Objective.

Aims to reinforce cooperation at a cross- border, transnational and interregional level and acts as a complement to the European two other objectives. It promotes common Territorial Objective 3 solutions in the domain of urban, rural and Co-operation coastal development, the development of economic relations and the setting up of SMEs.

The Convergence Objective The Regional Competitiveness and Employment Objective In general, Convergence means that Structural Funding should contribute to the increase of the Operations under this objective aim at GDP in regions which are lagging behind. This strengthening competitiveness and attractiveness, includes all EU regions with a GDP per head below as well as employment in the target regions. Firstly, 75% of the EU average. In line with this objective the development programmes will help regions foster ﬁ nancial support has to promote growth-enhancing economic change through innovation and the conditions and factors leading to development and promotion of a knowledge-based society, as well real convergence for the least-developed Member as through entrepreneurship, protection of the States and regions. environment and the delivery of more services to The countries and regions eligible under the companies and people. Secondly, more and better Convergence Objective receive more than 80% of jobs will be supported by qualifying the workforce the total EU Structural Funding for the period 2007- and by investing in human resources. 2013.

116 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

European Territorial Co-operation Objective

Will strengthen cross-border, regional and transnational co-operation towards fi nding joint ToTo kknownow moremore solutions to issues such as urban, rural and coastal development, development of economic relations, European regionsregions can benefi t from Structural exchange of professional and fi eld experience FundinFundingg dependingdepending on how theythey are classifi eded:: and networking of SMEs and organisations. This objective is based on the experience drawn from ConvergenceConvergence regionsregions – regionsregions at NUTS 2 level the former Community initiative INTERREG. with a GDPGDP per head ooff less than 75%75% ofof the EU-25 averageaverage can receive fundingfunding under the ConvergenceConvergence Objective.Objective. GEOGRAPHICAL DISTRIBUTION ACCORDING THE COHESION POLICY Competitiveness and EmploymentEmployment reregionsgions – ththee OBJECTIVES remainingremaining part of the EU (NUTS(NUTS 1 or NUTS 2 regionsregions dependingdepending on the Member States)States) can receive fundingfunding under the RegionalRegional Competitiveness and The entire European Union is covered by one EmploymentEmployment Objective.Objective. or several objectives of the Cohesion Policy. To determine geographic eligibility, the Commission AllAll EU reregionsgions at NUTS 3 level can benefi t from the bases its decision on statistical data. Europe is European Territorial Co-operation ObjectiveObjective divided into various groups of regions corresponding to the classifi cation known by the acronym NUTS (the Nomenclature of Territorial Units for Statistics).

Map 9. Map of European regions eligible for funding under the three policy objectives

Phasing-out Regions - A phasing-out system is granted to those regions which would have been eligible for funding under the Convergence Objective if the threshold of 75% of GDP had been calculated when the EU comprised 15 rather than 25 states. Phasing-in Regions – A phasing-in system is granted until 2013 to NUTS 2 regions which were covered by the former Objective 1 but whose GDP exceeds 75% of the average GDP of the EU-15.

117 European Funds for Croatian Projects

STRUCTURAL INSTRUMENTS – TOOLS TO ACHIEVE COHESION POLICY OBJECTIVES

The Structural Instruments were created to help Structural Instruments are distributed between the those regions, within the European Union, whose Member States depending notably on the following development is lagging behind. The aim is to reduce criteria: population, national wealth measured the differences between regions and create a better through the Gross Domestic Product (GDP), regional economic and social balance within and between wealth in GDP and unemployment rate. Member States. Within the present Financial Framework 2007-2013, The Structural Instruments contribute to the three Structural Instruments are: the European Fund for mentioned Cohesion Policy Objectives shown in Regional Development (ERDF), the European Figure 15. Social Fund (ESF) and the Cohesion Fund.

Figure 15. EU Objectives and Structural Instruments for the period 2007 - 2013

Objectives Structural Instruments

European Regional European Cohesion Convergence Development Fund Social Fund Fund

Regional European Regional European Competitiveness and Development Fund Social Fund Employment

European Territorial European Regional Cooperation Development Fund Cohesion Policy 2007 - 2013 3 Objectives 3 Instruments

GUIDING PRINCIPLES IN SPENDING EU FUNDS

Activities ﬁ nanced under Structural Instruments are e.g.: geographic - about 80% of funding is foreseen underpinned by six guiding principles: additionality, for less developed regions, thematic – a focus on the concentration, partnership, programming, Lisbon Strategy and Gothenburg Goals concerning proportionality and subsidiarity. sustainable development.

Additionality Partnership Financial support given through Structural This principle implies the closest possible cooperation Instruments is in addition to the national budget at between the competent national, regional, local, Member States level for projects aimed at supporting other public authorities and economic and social socio-economic cohesion of their regions. In other partners in the Member State at all stages – from words, the Structural Instrument must not substitute the preparation of national strategic documents a Member State's infrastructural spending. In the to the implementation of individual projects. event that this principle is not being respected a Partnership ensures the effectiveness of measures fi nancial corrective mechanism will be imposed. to be fi nanced and enhances transparency through achieved consensus. Concentration This principle means that strategic funding Programming objectives should be clearly defi ned so that Programming means that all measures to be resources are targeted towards strategic priorities, funded should be defi ned multi-anually within the 118 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

framework of strategic development documents. Sudsidiarity Those documents should be developed based on Subsidiarity ensures that activities best managed the decision-making process built on a continuous at national, regional or local level are funded and and solid partnership consultation. managed at the most appropriate level and that the

Union does not intervene. Proportionality Proportionality means that the obligations given to Member States differ dependent on the total amount of expenditure per Operational Programme (the choice of indicators used to measure the success of a programme, the obligations in terms of evaluation, management and reporting).

STRATEGIC APPROACH IN STRUCTURAL FUNDS INVESTMENTS FROM 2007

All activities funded by Structural Instruments are being developed thematically according to the aforesaid broad objectives – i) Convergence, ii) Regional Competitiveness and Employment and iii) European Territorial Cooperation.

Community Strategic Guidelines on Cohesion

The EC recognised the need for a further streamlining of the priorites related to the overall economic growth and socio-economic cohesion of the Union and as a result prepared the Community Strategic Guidelines on Cohesion (see Figure 16), following close consultation with Member States, with the aim of creating a more structured process of Cohesion Policy implementation at all levels and ﬁ nally contributing to an increased economic effectiveness, transparency and political accountability.

Figure 16. Strategic Approach in Structural Funds Investments

Strategic Community Guidelines for Cohesion / Financial Instruments 1 Prepared by the Commission, approved by the Council in coordination with the Parliament

National Strategic Reference Framework 2 Prepared and submitted by Member States to the EC. In line with partnership principles, priorities of Strategic Community Guidelines for Cohesion and national strategic documents.

Operational Programmes 3 Separate Operational programme for each Fund or sector. Include description of priorities, measures, management and implementation procedures, etc.

Management of the Operational Programmes 4 From Member States, in line with “shared management” principles = coordination with EC

Opening of Call for Proposals. Selection and Contracting 5 From Mananging Autority, Intermediary Body, based on competitive procurement rules and procedures

119 European Funds for Croatian Projects

To know more Operational Programmes (OPs)

The EU StrategicStrategic GuidelinesGuidelines on CohesionCohesion5454 are OPs set up the intervention priorities of the Member focused on three priorities: i)i) improvement ofof State (and/or regions). Each Member State, including the attractiveness ofof regionsregions and cities within the the regions, together with the European Commission MemberMember States;States; ii)ii) encouragementencouragement ofof innovation, agrees on the Operational Programmes. Prior to entrepreneurshipentrepreneurship andand growthgrowth inin thethe knowledgeknowledge that, the Commission will already have determined economy;economy; and iii)iii) creation ofof more and better jobs.jobs. the indicative fi nancial allocations per Member OnOn the basis ooff these priorities, the guidelinesguidelines aim State, which then decides on the specifi c details of to:to: how the resources will be divided among the regions ● make Europe and its reregionsgions more attractive and to which priorities. places to invest and work;work; ● improveimprove knowledgeknowledge andand innovation;innovation; ● createcreate more and better jobs;jobs; OPERATIONAL PROGRAMMES content: ● taketake accountaccount of thethe territorialterritorial dimensiondimension of thethe ● an analysis of the eligible area (strengths, Cohesion Policy.Policy. weaknesses) ● a justification of the priorities retained (in terms of Community Strategic GuIDelines on Cohesion and the National Strategic Reference National Strategic Reference Framework (NSRF) Framework) ● the specific objectives of the key priorities The National Strategic Reference Framework is ● funding plans prepared by each Member State, coherent with the ● the implementation of the programmes Strategic Guidelines, during an ongoing consultation (designating management, audit and certification with EC services and partners. It identifi es long- authorities; description of evaluation and follow- term priorities, required budgets and the number of up systems) envisaged Operational Programmes. ● an indicative list of large infastructure projects (environment projects exceeding EUR 25 million and other projects exceeding EUR 50 million)

NSRF content: ● an analysis of the socio-economic situation, The Member State and its regions then has the strengths and weaknesses of the whole task of implementing the programmes, meaning territory, taking into account trends in European selecting thousands of projects, whilst also and global economies monitoring and assessing them. ● a justification of a chosen strategy, a list of Operational Programmes for the Convergance At the beginning of each year the relevant Objective and the Regional Competitiveness management authorities in Member States publicise and Employment Objective, and an indication via the Internet their Indicative Annual Work of the annual allocation from each programme Programmes per OP so that interested parties can ● contributions of the NSRF to Lisbon Strategy identify appropriate options for project preparation priorities and application ahead of time. ● for regions concerned with the Convergence objective: information on the coordination with The following Figure 17 demonstrates the example EAFRD (the European Agricultural Fund for of interrelation between the bodies’ responsible Rural Development) and EFF (the European for the National Strategic Reference Framework Fisheries Fund), and information on the document and Operational Programmes according additionality principle and operation plans to to Bulgaria’s priorities. The number of OPs is strengthen adminsitrative efficiency optional, depending on the individual Member State’s decision.

54 www.eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:291:0011:0032:EN:PDF 120 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION OP OP – Ministry MSAAR Capacity Managing Committee Authority of OP Monitoring OP Administrative – Ministry of MEW MEE – Ministry of State MSAAR MT OP OP Transport Managing Committee Authority of OP Monitoring OP – Ministry of Transport, Transport, – Ministry of – Ministry of Labour and Social Policy, – Ministry of Labour and Social Policy, MT MLSP OP OP Body – Ministry of Regional Development and Public Works, – Ministry of Regional Development and Public Works, MEW Managing Committee Authority of Environment 1 Intermediate OP Monitoring OP Legend: MRDPW Economy and Energy, Economy and Energy, Administrattion and Administrative Reform Administrattion and of Environment and Water, of Environment and Water, NSRF MONITORING COMMITTEE NSRF MONITORING BENEFICIARIES MLSP Bodies Managing Committee Authority of Development OP Monitoring OP 3 Intermediate Human Resources EUROPEAN COMMISSION OP OP MEE Body Committee economy Managing Authority of of Bulgarian OP Monitoring OP 1 Intermediate Development of the competitiveness OP OP Committee Bodies MRDPW Regional Managing OP Monitoring OP Authority of Development 6 Intermediate IN THE MINISTRY OF FINANCE THE MINISTRY IN Figure 17. Programming documents and institutional arrangements for the management of Structural Instruments in Bulgaria Figure 17. Programming CENTRAL COORDINATION UNIT, UNIT, COORDINATION CENTRAL Source: General procedures Manual for management of Structural funds and Cohesion fund in Bulgaria, Management of EU Funds Directorate, Ministry Finance

MANAGEMENT OF EU FUNDS DIRECTORATE OF EU FUNDS DIRECTORATE MANAGEMENT FINANCE FINANCE OF MINISTRY

CERTIFYING CERTIFYING AUTHORITY - AUTHORITY THE IN DIRECTORATE - AUTHORITY AUDIT NATIONAL FUND NATIONAL DIRECTORATE IN DIRECTORATE THE MINISTRY OF THE MINISTRY

121 European Funds for Croatian Projects

BUDGET FOR COHESION

The Structural Funds budget and the rules for its use therefore the second largest budget item for the are decided by the EU Council and the European period 2007-2013, amounting to EUR 347.41 billion. Parliament on the basis of a proposal from the The division of the Structural Funding per objective European Commission. is shown in Figure 18: The EU Cohesion Policy represents about one third of the total EU budget expenditure (35.7%) and is

Figure 18. Division of Structural Funding per objectives

Cohesion Policy for 2007-2013 Total: around 347 billion euros (current prices)

European Territorial Cooperation Convergence (of which 80 goes to the Cohesion Fund) Regional Competiveness and Employment

81.54% - Objective 1 - Convergence 15.95% - Objective 2 - Regional Competitiveness and Employment 2.52% - Objective 3 - European Territorial Co-operation

Source: http://ec.europa.eu/regional_policy/policy/fonds/2007-2013-by-objective_large_en.gif

HOW ARE STRUCTURAL INSTRUMENTS MANAGED?

Structural Instruments are managed at an operational ● A Regulation on the European Regional level largely by national or regional authorities., Development Fund (ERDF): for the funding of The European Commission, however, performs ex- projects on research, innovation, environment, post control and evaluation of the programmes and risk prevention, and infrastructure in the least ﬁ nanced activities and the related spending within a developed regions56. decentralised management practice. ● A Regulation on the European Social Fund (ESF): for the funding of projects for Complementing the Strategic Guidelines on employment, quality and productivity at work Cohesion which sets out the political priorities for and social inclusion – in line with the European funding to support the Cohesion Policy Objectives, Employment Strategy57. ﬁ ve regulations adopted in 2006 (see Figure 19) set the legal basis for the Structural Instruments, that is ● A Regulation on the Cohesion Fund (CF): to say, for which purposes and in what manner the to invest in environmental projects and trans- funding is allowed to be spent: European networks in Member States with a GNP of less than 90% of the Community ● The General Regulation establishes common average national income (e.g. the ten new rules in programming, managing, controlling Member States, plus Greece and Portugal)58. and evaluating the Cohesion Policy with added emphasis on environmental and accessibility ● A Regulation on a new instrument, the issues, and on the "partnership principle" European grouping of cross-border co- which governs the whole policy55. operation (EGCC): for the funding of cross- border projects59.

55 Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 56 Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999 57 Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999 58 Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94 59 Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) 122 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

Figure 19. Regulatory Framework for the period 2007 – 2013

General Regulation 1083/2006 on the ERDF, the ESF and the Cohesion Fund

- ERDF Regulation: 1080/2006 - ESF Regulation: 1081/20064 - Cohesion Fund Regulation: 1084/2006

Regulation 1082/2006 establishing European Grouping of Territorial Cooperation (EGTC)

Commission Regulation 1828/2006 for the Implementation of General Regulation 1083/2006: Information & Publicity, Management and Control systems, Financial corrections…

In accordance with EC General Rules regulations, Information and Publicity in respect to Structural the required management structure for each Instruments management Operational Programme to be fi nanced under Structural Instruments is prescribed at Member Rules on information and publicity are very strict State level: and the Member States should guarantee that ● A Managing Authority is responsible for information concerning citizens and benefi ciaries the overall efficient, effective and correct are to be delivered with the aim of ensuring management and implementation of an transparency and highlighting the role of the Union. Operational Programme. It delivers to the EC each year a performance plan; ● A Certifying Authority draws up and sends to Financial Management the EC a certified inventory of expenditure and requests for payment. It must also certify the The European Commission (EC) commits the accuracy and the compliance of expenditure in budget for expenditure for each Member State so terms of Community and national rules; that they can start the programmes implementation. ● An Audit Authority, an operationally independent The EC pays only the certifi ed expenditure i.e. body designated by the Member State audits after expenditure has been certifi ed by the relevant an appropriate sample of activities financed Certifying Authority in the Member State. by EU funds and writes up the annual control reports; ● Monitoring Committees ensure the efficiency and the quality of the implementation of the Operational Programme throughout its lifetime.

The example, as presented in Figure 17 above shows that the Managing Authorities in Bulgaria are the Ministry of Regional Development and Public Works (OP Regional Development), the Ministry of Economy and Energy (OP Competitiveness), the Ministry of Labour and Social Policy (OP Human Resources Development), the Ministry of Environment and Water (OP Environment), the Ministry of Transport (OP Transport), and the Ministry of State Administration and Administrative Reform (OP Administrative capacity). The Central Coordination Unit (the National Aid Coordinator), the Certifying Authority and the Audit Authorities are separate directorates within the Ministry of Finance. 123 European Funds for Croatian Projects

“N+ “ Rule

In terms of funding, projects ﬁ nanced under Structural Instruments are managed according to the N+2 rule. This means that expenditure may be disbursed within 2 years of the start date of a given project. To the new EU Member States, however, a more favourable scheme was offered, i.e. the N+3 rule, which allows disbursement within 3 years to Figure 20. N+3 rule be applied. Figure 20 shows the N+3 rule. Beyond this disbursement deadline the committed funding N+3 for that period cannot be used. Disburesement N+3 deadlines N+3

N+3 Year N

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EUROPEAN REGIONAL DEVELOPMENT FUND

The European Regional Development Fund ● various local initiatives to promote regional (ERDF)60 was established in 1975 to stimulate economic development, e.g. ICT networks’ economic and social development in the less development, ICT based services’ development, prosperous regions of the European Union. housing, ● environmental protection, sustainable urban As the EU has grown, ERDF has developed into transport and improvement measures which a major instrument to reduce imbalances between are linked to regional economic development regions and social groups. and urban environment improvement, ● tourism and cultural projects, including related infrastructure. ERDF operations In the past a Community initiative called URBAN The ﬁ nancial support from ERDF is focused was implemented in parallel with the ERDF. URBAN on those projects with substantial beneﬁ ts to a projects helped the regeneration of urban areas particular geographical area and which would not and neighbourhoods in crisis across the EU, mostly be implemented without an EU grant. The types of through innovative initiatives. Funding is concentrated projects generally supported by the ERDF include: on physical and environmental regeneration, social inclusion, training, entrepreneurship and ● investment in sites and facilities for industry employment. and business, help for SMEs, and support for research and development. These are all Like URBAN, another Community initiative named designed to encourage permanent jobs in INTERREG for cross-border cooperation has also regions with high unemployment; been implemented in parallel with the ERDF. ● infrastructure projects which foster the regions’ economic development such as modernisation In the period 2007-2013 both initiatives have of the local public infrastructure, capital works become part of the Structural Funds Operational associated with vocational training centres Progammes to be funded by the ERDF. and social infrastructure, energy efficiency initiatives, etc;

60 For further information about ERDF, please, follow the link: http://ec.europa.eu/regional_policy/funds/feder/index_en.htm 124 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

Benefi ciaries of the ERDF projects EU FUNDED PROJECTS FOR REGIONAL DEVELOPMENT 61 All EU Member States implement seven-year Operational Programmes in the fi eld of regional Although Croatia is not yet a full Member State of the development. These programmes are executed on EU, it has some experience with “Structural Funds” a project-based principle by various actors from the type of activities through previous programmes, public and private sector: mainly regional and local particularly the pre-accession programme Phare in authorities, municipal companies, SMEs, research its Economic and Social Cohesion component. The and educational establishments, cultural institutions, following briefl y shows one of the Phare projects non-governmental organisations, etc. which sets the basis and provides experience for future projects to be fi nanced under the European Croatia will be able to benefi t from the ERDF upon Regional Development Fund. its accession to the EU. It is preparing for its use mainly through the IPA programme – Component II and III programmes.

Programme: Phare 2005 Business related infrastructure – Grant scheme Budget: EUR 6,66 milion Objectives and Results: The objective of the project was the effective absorption of the Phare Economic and Social Cohesion Funds (ESC) in 2005-2006, the Instrument for Pre-accession Assistance (IPA) funds from 2007 onwards and, upon accession, the Cohesion and Structural Funds to reduce internal and external regional disparities. The purpose of the project was to pilot test programmes and planning structures that will implement Phare ESC and IPA pre-accession and the Structural and Cohesion Funds after accession through selective focusing on a limited number of investment priorities. The objective of the business-related infrastructure scheme was to improve Croatia’s business-related infrastructure thus contributing to regional development. While the scheme was open to all eligible applicants throughout Croatia, preference, in terms of consideration, was given to projects likely to benefi t SMEs and/or projects located within the assisted areas, that is in areas of special state concern, hilly and mountainous areas and on a Group 1 (i.e an undeveloped or insuffi ciently developed) island. Preference in terms of co-fi nancing was given to projects located within the aforementioned assisted areas. The priorities for 2006 were: ● Modernisation/extension of infrastructure essential to business development (e.g. access roads to tourism sites, business incubators, industrial zones, etc) ● Development of existing business incubators, business centres, industrial parks, etc. ● Development of a communal infrastructure (water, wastewater, electricity, social and cultural centres, etc) in areas where the potential of tourism is adversely effected by poor infrastructure) ● Development of a tourist infrastructure (e.g. tourism information centres, protection of cultural heritage sites with high tourism potential, development of a sporting and cultural infrastructure primarily aimed at tourism development, tourism signposting, etc.) ● Development of the infrastructural base for research, technology and innovation for businesses (including testing laboratories, cluster-based R&D facilities and training institutions, etc.) ● Development of a multi-user Information and Communications Technology infrastructure (for example, public internet access points in smaller communities) ● Training and technical assistance to maximise the effective use of the new infrastructure and ensure, where feasible, that the long-term sustainability is achieved. For all projects it will be important to demonstrate a contribution to the goals of the Lisbon Strategy, i.e. to contribute to the enhancement of economic growth, employment, R&D and ICT technology.

Who benefi ted from the project? The grant scheme benefi ciaries were local authorities, SMEs, tourist organisations, educational organisations. The list of benefi ciaries is shown in Table 37 below:

61 For further information about projects for regional development, please, follow the links: http://ec.europa.eu/regional_policy/conferences/excellence/doc/pdf/excellence_en.pdf http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm http://ec.europa.eu/enterprise/newsroom/cf/document.cfm?action=display&doc_id=734&userservice_id=1 125 European Funds for Croatian Projects

Table 37. List of beneﬁ ciaries of the Phare 2005 Business related Infrastructure – Grant scheme

Percentage of Action Action Grant amount Beneﬁ ciary Action Title total eligible Location duration in EUR cost

1 Town of Otočac Trout and Tourists Croatia 12 months 472.667,14 75%

2 Poduzetnički Development of Entrepreneurial Croatia 14 months 925.286,00 64,49% inkubator BIOS Infrastrucutre by increasing d.o.o. Osijek the spatial capacity of the Business incubator BIOS and its technological and educational capacity for fostering start-up enterprises

3 Town of Extention of Infrastrucutre in Croatia 12 months 638.442,00 75% Benkovac business zone Šopot

4 Town of Pakrac Developemnt with knowledge Croatia 14 months 661.436,00 75%

5 City of Delnice Multifunctional hall for sports Croaita 14 months 981.188,00 36% tourism

6 City of Slatina Construcution continuation Croatia 14 months 873.736,00 45,55% of „Trnovača“ Slatina enterpreneurial zone

7 City of The tourist and cultural Croatia 14 months 727.438,00 74,15% Lepoglava infomation centre

Awarded projects with RegioStars Awards 2008

RegioStars – The Awards for Innovative Projects – form part of the enhanced communication effort proposed in the Communication on Regions for Economic Change (COM(2006) 675). The objective of the RegioStars Awards is to identify good practice in regional development and to highlight original and innovative projects which could be attractive and inspiring to other regions. The projects presented below have been awarded with RegioStars for 2008.

126 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

DIALOGUES FLOATING AUTONOMOUS ENVIRONMENTAL FRIENDLY AND Western Scotland – United Kingdom EFFICIENT DESALINATION UNIT

The aim of the project is to work towards the creation of Greece high-quality employment opportunities and collaborative ventures with strong links to the educational system. The This is a ﬂ oating platform in the Aegean Sea that uses objectives are to increase investment activities in R&D energy provided from renewable sources to produce and the biotechnology sector, linking the research base drinking water for the islands from sea water. The energy with SMEs and encouraging academics to work with to desalinate the sea water is provided by a wind generator SMEs. and a photovoltaic system.

ENERGIEKOMPETENZPLUS – ENERGY ENERGIVIE COMPETENCE CENTRE BЦBINGEN AN DER REMS Alsace, France

Baden-Wurttemberg, Germany ENERGIVIE encourages the demand for renewable energies-related equipment through both a comprehensive The objective of EnergiekompetenzPLUS is to bring low- communication campaign and advisory services for local energy construction techniques to citizens and companies authorities. It also contributes to providing a better offer in the region through a show property; to demonstrate both in the region (e.g., upgrading existing professionals’ skills residential and commercial innovation in resource-saving and preparing future professionals in the solar, wood- techniques for low energy consumption. The project has energy and construction sectors), conducting experiments also established a cooperation network of companies as (e.g. low-energy consumption buildings in Mulhouse) and well as a training centre for craftsmen and architects. carrying out studies (biofuels, biogas and geothermal energy).

CLUSTER ECO-CONSTRUCTION REGIONAL INNOVATION SYSTEM

Province de Namur, Belgium Upper Austria

The development strategy for the eco-construction sector The aim of this Innovative Actions Programme was to was initiated in 2002 in the Namur region with a view further develop the region’s innovation support system by to swift expansion to the whole of Wallonia. The cluster setting up a number of cross-sectoral networks between manages exchanges of experiences and partnerships companies and public actors in the existing clusters. between companies, and puts together proposals for The programme has brought together many parties from projects, investments and promotional policy. The project the public and private sectors and academia to network has made it possible to accelerate the market trends and run pilot projects in the areas of human resources, of eco-construction in Wallonia and other European research & technological innovation, logistics and design regions. & media.

CENTRES FOR INDUSTRIAL INNOVATION ASSISTANT COLLABORATION (CIC) Lower Austria Yorkshire and the Humber, United Kingdom Niederosterreich piloted a scheme to encourage SMEs This project was set up to help businesses harness the to employ recent graduates in order to strengthen their intellectual strengths and technical expertise of regional technological and innovation competence. Targeting universities. The CICs facilitate the transfer of skills and small SMEs and those in rural areas, the project provided technology from universities to small and large companies, support for an Innovation Assistant to work on a speciﬁ c encouraging greater levels of industrial innovation, innovation project. research & development.

127 European Funds for Croatian Projects

EUROPEAN SOCIAL FUND Beneﬁ ciaries of the ESF projects

All new EU Member States implement seven-year The European Social Fund (ESF)62 was established Operational Programmes in the fi eld of human in 1958 to support the Community social policy. resources. These programmes are implemented Today it is the EU fi nancial instrument for investing through a wide range of organisations, both in the in people. It targets the improvement of the lives of public and private sector. EU citizens by giving them better skills and better job prospects. These organisations include national, regional and local authorities, educational and training Similar to the ERDF the strategic objective of the institutions, non-governmental organisations and ESF is to reduce disparities in prosperity and living the voluntary sector, as well as social partners, for standards across EU Member States and regions, example trade unions and works councils, industry and therefore promoting economic and social and professional associations, companies and cohesion. individuals. Since 2000, the ESF has been a key part of the Croatia will be able to benefi t from the ESF upon its EU's Lisbon Strategy for Growth and Jobs. accession to the EU. It is preparing for its utilisation primarily through the IPA-Component I and IV It supports the EU's goal of increasing employment programmes. by giving unemployed and disadvantaged people the training and support they need to gain employment. By focusing on those most in need of help, it contributes to policies to reduce inequality and build a fairer society. ESF also equips the workforce with the business skills needed in a competitive global economy.

ESF operations

The ESF funding is directed towards the following: ● vocational training, ● scholarships, apprenticeships, ● vocational guidance and job placement, ● projects promoting employment as well as quality and productivity at work, ● social inclusion by combating discrimination and facilitating access to the labour market for disadvantaged people, ● further education and adult learning, ● building up the necessary administrative capacity i.e. actions aimed at developing the institutional capacity and the efficiency of public administrations at national, regional and local level, mostly in the new member states, ● labour market analyses and studies, ● partnership promotion for reform in the fields of employment and inclusion.

Funding is spread across Member States and regions, in particular those where economic development is less advanced.

62 For further information about ESF, please, follow the link: http://ec.europa.eu/regional_policy/funds/fse/index_en.htm 128 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

“ESF-TYPE” OF PROJECTS FINANCED IN CROATIA

ESF has still not been performed in Croatia but various ESF-type of actions have been implemented through the CARDS and Phare projects. These actions serve as a basis for future ESF programme actions.

Programme: CARDS 2001 Labour market restructuring Budget: EUR 3.0 million

Objectves and Results: The aim of the project was to develop the institution capacity of the Croatian Employment Service (CES), to provide services for workers made redundant in companies undergoing restructuring, as well as to test their impact. The project achieved the following results: The CES carried out a study on instruments and methods of collecting information in the labour market; a design for a qualitative survey on the labour market was developed; a pilot survey was carried out on a sample of 2,000 employers in four counties: Zagreb County, Osijek Baranja County, Primorsko-goranska County and Zadar County; a vocational guidance strategy was developed and the training of 21 counsellors from the Vocational Guidance Department took place so that they can communicate these skills to school and CES employees, who in turn will be responsible for informing students about opportunities within the labour market; within the Croatian Employment Service 26 counsellors who work exclusively with disabled persons and with those who have difﬁ culty ﬁ nding employment were educated; computer equipment was installed in CES and in 3 centres supporting business transition in Rijeka and in 4 other centres; a seminar was held with trade unions on the restructuring of companies and work concepts of mobility centres; mobility centres (i.e. centres of support during business transition) were established in the following companies: Luka, RIO, and Lumik in Rijeka, Belje in Osijek, and 3 centres were established in Zagreb, Osijek and Split.

Who beneﬁ ted from the project? The main beneﬁ ciary is the Croatian Employment Service and employees of companies undergoing restructuring.

Programme: PHARE 2005 “Active Employment Measures for Groups Threatened by Social Exclusion” is the ﬁ rst project ﬁ nanced under the PHARE Programme within the Croatian Employment Service. Budget: EUR 2,25 million

Objectives and Results: The overall objective of this project is to promote economic and social cohesion to achieve better vocational integration of the most sensitive groups in the Croatian labour market. At the same time, the labour market stakeholders’ capacity to implement active labour market policy measures in the case of persons threatened by social exclusion will be developed. It will facilitate access to the labour market for unemployed persons threatened by social exclusion. The results of the project are the following: a thorough evaluation of previous employment incentive measures; the design of a new range of measures; a higher level of CES employees' professional qualiﬁ cation in the creation and implementation of the Active Labour Market Policy; a higher level of employability of groups threatened by social exclusion.

Part of the budget of this project, total of EUR 1,0 million, is envisaged as a grant. The main goal of the PHARE 2005 grant scheme is to develop the capacity of all relevant labour market agents to carry out active labour market measures directed primarily toward those persons who have lower employability prospects. Eleven projects have been awarded grants. These projects deal with vulnerable groups such as people with disabilities, long-term unemployed, elderly women, young people without work experience and the unemployed from rural areas. Labour market integration will be achieved mostly by improving the knowledge and skills of the unemployed who are at risk of social exclusion and by providing job search assistance to the target groups.

Who beneﬁ ted from the project? The Croatian Employment Service was the main beneﬁ ciary of the technical assistance part of the project, but the following projects have also received grants:

129 European Funds for Croatian Projects

i) BONSAI – Youth opportunities for employment in Croatia, primary applicant: the Economic Institute Maribor- Human Resource Development Centre, partner applicant: the Regional Labour Foundation of Podravje, Slovenia, ii) Challenging unemployment in deprived rural areas of Croatia, primary applicant: the Centre for Civil Initiatives (CCI), and partners: the Agriculture Ecology Cooperative Svarun and the Open University Duga Resa, iii) Creating new opportunities for integration in the labour market, primary applicant: CESI- the Centre for Education, Counselling and Research, partners: DOMINE, Split and HULAHOP, Zagreb, iv) Give women a chance!,. primary applicant: the Development Agency North-DAN d.o.o., and partners: Development Agency North-DAN d.o.o. from Varaždin, Croatian Women’s Society, Town of Pleternica, Centre for Entrepreneurship Osijek, v) Training and contact point in Istria, primary applicant: Istrian Development Agency (IDA d.o.o.), partners: Istria County, ZUM-Association for Promotion of Employment and Professional Improvement of Young People, Entrepreneurship Centre Pula, Town of Poreč, Town of Pula, associates: CES, Regional Ofﬁ ce Pula, Towns Buje, Buzet, Labin, Novigrad, Pazin, Umag, Vodnjan, vi) Employment of people with special needs, primary applicant: the Association for Inclusion 'Lastavice' Split, partners: Town of Split, vii) Introducing a model of informal education with the purpose of greater employment of persons with disabilities in administrative, technical, and service based professions, primary applicant: the Regional Development Agency PORIN Ltd., partners: the Regional Development Agency PORIN Ltd., The Chamber of Trades and Crafts Of Primorsko-Goranska County, Society for Persons with Mental Retardation, viii) Roma employment initiative, primary applicant: The Croatian “Roma for Roma association", partners: Varaždin County, The Open Community College Varaždin, The Municipality of Cestica, The Municipality of Petrijanect, ix) From dependency on state beneﬁ ts to self-employment, primary applicant: SMEs and Entrepreneurship Policy Centre, partners: Highschool “Matija Anton Reljković” Slavonski Brod, HLAD d.o.o. Slavonski Brod, x) Women’s Club - tailor-made individualized support to long-term unemployed women, primary applicant: Women's Group Karlovac "Step", partners: Selectio d.o.o., Town Karlovac and xi) Be active - engage yourself!, primary applicant: Vukovar Institute for Peace Research and Education, partners: Polytechnic “Lavoslav Ružička” Vukovar, Youth Peace Group Danube Vukovar Vukovar Institute for Peace Research and Education

COHESION FUND

The Cohesion Fund (CF) was established in 1994 to on a regional level. The Cohesion Fund ﬁ nances foster the socio-economic development of the less up to 85 % of eligible expenditure of large-scale developed EU states at that time, namely Spain, projects involving the environment and transport Portugal, Greece and Ireland. infrastructure.

However, in the current period until 2013 it applies Cohesion Fund operations to Member States with a gross national income of less than 90% of the Community average, which In the environmental ﬁ eld the Fund gives priority means it covers the new Member States as well as to drinking-water supply, treatment of wastewater Greece and Portugal. Initially, the support for the and disposal of solid waste. Re-forestation, erosion “old” Member States concerned, was planned for the control and nature conservation measures can also years 1993-1999, however it was later decided that be funded. this period be extended so that countries lagging behind can easier achieve convergence. In the area of transport, funding is directed toward projects establishing or developing a transport infrastructure deﬁ ned as an integral part of the Unlike the Structural Funds (ERDF, ESF), the Trans-European transport network. Cohesion Fund operates only on a national, not 130 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

To kknownow more There has to be an appropriate funding balance between transport infrastructure projects and The ECEC supports three initiatives with the aim ofof ofof environment projects funded by the CF in each improvingimproving access to fi nance and risk capital to SMEs benefi ciary country. throughthrough enhanced cooperation with the European InvestmentInvestment Bank GroupGroup and other International A project may not benefi t both from the CF and FinancingFinancing Institutions:Institutions: Structural funds. In general, the Cohesion Fund JASPERSJASPERS (Joint(Joint Assistance in SupportingSupporting ProjectsProjects supports the major country environment and in European Regions)Regions) transport infrastructure investments while the ERDF ● the preparation of mamajorjor projectsprojects to be financed may fi nance projects in the same fi elds but of regional underunder ERDF and CFCF and local character, e.g. small-scale infrastructure JEREMIE (Joint(Joint European Resources forfor Micro to projects supporting local businesses, developing MediumMedium Enterprises)Enterprises) local roads, improving the local environment, etc. innovative access to fi nance forfor SMEsSMEs (m(microicro credit, Unlike the CF, ERDF can also invest in smaller scale venture capital, loans, guarantees)guarantees) urban infrastructure improvement, e.g. restoration JESSICAJESSICA (Joint(Joint European Support for Sustainable and renovation of buildings, bus stations, parks, InvestmentInvestment in CityCity Areas)Areas) sidewalks, alleys, etc. ● lendinglending forfor urban development, includingincluding social housing.housing.

Beneﬁ ciaries of the Cohesion Fund projects63

Large scale projects under the “Transport” and Croatia will be able to beneﬁ t the CF upon its “Environment” Operational programmes in the accession to the EU. It is preparing for its utilisation Member States are implemented by public mainly through ISPA and IPA Regional Development authorities and private and public companies. programmes.

COMMON AGRICULTURAL POLICY

The Common Agricultural Policy (CAP) of the EU is based on two pillars (see Figure 21). The Regulation on the fi nancing of the Common Agricultural Policy sets the base for the creation of two new funds, in 2007, each fi nancing one of the two pillars of the CAP64. The fi rst pillar is fi nanced by the European Agricultural Guarantee Fund (EAGF) - focused on direct payments to farmers in Member States. The second pillar is fi nanced by the European Agricultural Fund for Rural Development (EAFRD) - focused on rural development programmes. The European Union has increasingly become very active in its rural development policy in order to gain valuable achievements for the countryside and for the people who live and work there.

Figure 21. Schematic presentation of CAP’s two pillars and their priority actions

First Pillar Second Pillar

Market policy RD policy Income support public goods

Food production Environmental function Rural function

Source: http://ec.europa.eu/agriculture/publi/fact/rurdev2007/en_2007.pdf

63For further information about CF, please, follow the link: http://ec.europa.eu/regional_policy/funds/cf/index_en.htm 64 Council Regulation (EC) No 1290/2005 on the ﬁ nancing of the common agrilcultural policy 131 European Funds for Croatian Projects

EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT

Both funds supporting the two CAP pillars operate Each Member State has to prepare a national plan alongside the SF Operational Programmes for the which should demonstrate coherence with the same period 2007-2013. However, the greater role Strategic Guidelines. This Rural Development Plan, is given to rural development. developed at national or regional level, will outline how the EAFRD funding is to be allocated in the Similar to the Structural Instruments in support of relevant country. Cohesion Policy goals, the Community Strategic Guidelines for Rural Development65 has been formulated to give strategic direction for the EAFRD.

Why rural development?

60 % of the population of the 27 Member States of the European Union live in rural areas, covering 90 % of the territory. Rural development is therefore a vitally important policy area.

Why agriculture and food ?

According to a recent poll among EU citizens the priorities of the Common Agricultural Policy should be to: ● provide healthy and safe food, ● ensure a fair standard of living for farmers, ● promote respect for the environment, ● guarantee that farm animals are well treated, ● help farmers adapt to consumer's expectations, ● ensure reasonable prices for consumers, ● boost growth and jobs in the rural areas. Hence the main aim of this policy is to provide a more sustainable development of the farm and food sector.

EUROPEAN AGRICULTURAL FUND FOR RURAL DEVELOPMENT ( EAFRD) ACTIONS

The EAFRD have three priority objectives under A thematic axis corresponds to each of the priority which actions can be funded (see Figure 22): objectives in the rural development plans. Member States and regions are obliged to spread their rural ● improving the competitiveness of the development funding between all three of these agricultural and forestry sector, thematic axes. However they can choose measures ● improving the environment and the and actions that best suit the needs of their rural countryside, areas. ● improving the quality of life in rural areas and diversification of the rural economy.

65 http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:055:0020:0029:EN:PDF 132 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

Figure 22. Schematic presentation of thematic axis and priority actions of CAP

Rural Development 2007-2013

"Leader Axis"

Axis 1 Axis 2 Axis 3

Competiveness Environment Economic + Diver. Land + Management Quality of life

Single set of programming, ﬁ nancing, monitoring, auditing rules

Single Rural Development Fund

Source: http://ec.europa.eu/agriculture/publi/fact/rurdev2007/en_2007.pdf

Axis 1. Competitiveness targets the restructuring ● forestry land, e.g. afforestation, restoring and modernisation of the agricultural sector. forestry potential and prevention, nonproductive investments. Projects within this thematic axis may include activities such as: Axis 3. Economic Diversifi cation and Quality of Life is targeted toward diversifi cation of the ● developing high quality products in line with rural economy and quality of life in rural areas. market demands, ● developing new outlets for agricultural and forestry products, What is diversifi cation of the rural economy? ● improving environmental performance of farms and forestry, Traditional sources of jobs and income in rural ● farm modernisation, areas, such as agriculture and forestry, and related ● improving economic value of forests, small industry have suffered in recent decades and ● processing and marketing agricultural and forced people to leave for the cities. However, rural forestry products, areas and small communities often have natural ● adaptation to new EU standards, resources, authentic agricultural or ecological- ● improving and developing infrastructure, based activities, history, and a kind of small-town ● developing business skills, and providing charm. This represents potential for a new type of advisory services and vocational training in economic development and life for local people, rural areas, which they can make use of through untraditional ● supporting new young farmers, early retirement and modern approaches, e.g. the start-up and of farmers. development of a rural and eco tourism and related business, the restoration and commercialisation of Axis 2. Environment and Land Management local handicrafts, developing new services based supports biodiversity and the preservation on available resources, etc. and development of high nature value farming and forestry systems and traditional agricultural landscapes; water; and climate change. The range of Axis 3 measures are intended to create employment opportunities and conditions for growth Projects within this thematic axis may include and economic changes in the rural area. Projects activities regarding the sustainable use of: may also address issues such as training and skills’ ● agricultural land, e.g. animal welfare, acquisition, information and entrepreneurship, in nonproductive investments, specific payments order to ensure that rural areas remain attractive for for networks like NATURA 2000, future generations. 133 European Funds for Croatian Projects

The three thematic axes are complemented by a local public authorities, to consider the potential kind of methodological horizontal axis dedicated to of their area and to develop and implement their the so called LEADER approach (LEADER axis). own development strategies. LEADER refers to area-based local development strategies which The LEADER approach66 (‘Links between actions cover integrated and multisectoral actions that are for the development of the rural economy’) is a elaborated and executed from the ground up. It is concept launched by the European Commission. also especially important that local action groups (LAGs) are created to lead the overall process which The main idea behind the LEADER approach is involves innovation, cooperation and networking. to mobilise rural people and local actors, including

Beneﬁ ciaries of the EAFRD projects

The rural actors that are most active in local The EAFRD creates a single fund and a single set initiatives for rural development are: of rules for rural development67. Previously, rural development was funded through the so called ● professional organisations and unions European Agricultural Guidance and Guarantee (representing farmers, non-farming Fund which, until 2006, was part of the EU Structural professionals and micro-enterprises), Funds and had separate rules on programming, ● trade associations, ﬁ nancing, reporting and control for its Guidance and ● local political representatives, Guarantee sections respectively. ● environmental associations, ● cultural and community service providers, Croatia will be able to beneﬁ t from the EAFRD including the media, upon its accession to the EU and is preparing for ● women’s associations, its utilisation through the SAPARD and IPA-Rural ● farmers, foresters, young people. Development programmes.

EU FUNDED PROJECTS FOR RURAL DEVELOPMENT IN EU MEMBER STATES68

The Saint Joseph Educational Dairy Farm Sustainable Food and Farming Centre SFFC

The project idea originated from dairy farmer Luc Nouwen The new SFFC in Wealden and Rother area of south-east in Kempen, which is a rural outlying district in Belgium. England is a result of an innovative project aiming at the He took the initiative to diversify his activities by offering provision of information and advice to local businesses. educational and recreational services on his farms to The centre offers specialised courses designed in various visitors (including school children, adult groups, response to local farming needs; hands-on practical individuals, etc.). His idea was supported by the local skilled programmes; support packages such as ongoing Leader+ activity group where they designed the project mentoring and coaching; environmentally sustainable with other rural, tourism and socio-cultural farmers and practices for training and advice; emphasis on networking actors. and collaboration with support for new cooperative initiatives among farmers and growers; promotion of local products; and linking producers with retail outlets. Sports and services centre ‘De Punt’

Flevoland is located in a tranquil province in the west Information and marketing centre of Hundisburg of the Netherlands which has actively been involved in brickyard and production of hard plaster agricultural development and now has a growing industry and many other improving social functions. The project The Hundisburg brickyard in the Sachsen-Anhalt region of aimed to improve the quality of life in this rural area. It is German has an important regional value and is considered a good bottom-up example since a group of local people as a technical monument. It started producing bricks at

66 For further information about LEADER, please, follow the link: http://ec.europa.eu/agriculture/rur/leaderplus/index_en.htm 67 For further information about rural development in the EU, please, follow the link: http://ec.europa.eu/agriculture/rurdev/index_en.htm 68 For further information about rural development projects, please, follow the link: http://ec.europa.eu/agriculture/rur/leaderplus/pdf/ bestpractice/bp2_en.pdf 134 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

decided to give up their spare time in search of improved the turn of the 20th century. In the 1930s the brickyard sports facilities. The idea was to integrate a diverse range stopped modernising its techniques and production was of facilities into a single centre. kept to a minimum.

A local sports association was set up. All work was However, in order to preserve historical buildings and done by the volunteers from this association. They monuments in the region in their original form, traditional organized many fund-raising activities. Most notably a building materials become very important and the demand very innovative and successful initiative was undertaken for them started to increase. In response to this, the through the production of a large auction which raised association Forderverein Technisches Denkmal Ziegelei EUR 75 000. During the auction, project partners sold all Hundisburg developed two project ideas. Firstly, they kinds of services and items donated by local businesses decided to develop a marketing and information centre; and people. These ranged from home-baked cakes to and secondly, they wished to reintroduce the production professional services such as welding and plumbing. of hard plaster in the brickyard. Currently the brickyard The project resulted in renovation of a new building, offers additionally various services including: production development of facilities and services for children and sites; a museum; carpentry; a pottery workshop; and also adults. a hostel. A range of courses are offered on site, along with overnight accommodation.

Nasium archaeological site Bornholm is building lighthouses The Pays d’Accueil des vallees de l’Ornain et de la Saulx (PAVOS, France) is characterised by demographic Bornholm is a small remote island which lies on the and economic decline. However the area has rich Eastern side of Denmark which is very beautiful and architectural heritage from the Renaissance and great has a rocky coastline. ‘Bornholm is building lighthouses’ tourist potential. is the common name for the whole local development plan. After detailed public meetings around the island, Firstly, an association has been set up in charge of the the local Leader group developed and executed three project. It took charge of improving the priority actions: A. development of digital media and IT as communication structure and raising awareness of the a support method for the local artists and craftsmen; B. ancient Nasium site to local actors. Site visits and training establishment of ‘the house of culinary art’ as a regional guides were developed for the archaeology of the site. development centre that develops small-scale food Tourist and cultural events were held attracting people from producers. It ensures that food comes from a clear identity around the region to come and visit the archaeological and local proﬁ le endorsing the concept ‘from the soil to site. A project website has also been created. The guided the table’; C. creation of ‘a house for businesses’ which visits of the site had a total of 11 000 visitors in 2004. focuses on setting up a network for local businesses in order to contribute to job creation.

Human beings and stone Leader Approach The Mullerthal region in Luxembourg is known mainly for its unique natural landscape. The project currently being Transnational education for the cultural guiding and implemented uses the region’s precious resource, stone, management of regional museums – three alpine regions to work along three separate themes: geology, economic in Austria and Germany. The Local Action Groups in exploitation and the function of stone as a natural habitat. three regions based on common interests and priorities To raise awareness of the importance of the area’s identiﬁ ed a common objective for their development geology, the project will create exhibition pieces and strategy. By linking tourism and culture, the project aims models for showcasing across the region. It is planned to promote employment in the three regions. To get to develop a sectional view of Mullerthal linking the two examples of best practice the regions consulted similar municipalities involved and illustrating a learning trail of cooperation arrangements in Italy. past quarrying history. All localities in the region will be provided with a geological ‘box’ containing material and professional advice on geology for use in local schools. In various art classes pupils will be able to learn to work with the local stone and construct sculptures and mosaics.

135 European Funds for Croatian Projects

EUROPEAN FISHERIES FUND The Member States are tasked to prepare a strategic plan and an Operational Programme in order to benefi t from assistance under the EFF. The national The European Fisheries Fund (EFF) is the instrument strategic plans set out the national priorities in line supporting the EU Common Fisheries Policy. with the current objectives of the Common Fisheries EFF has been designed to secure a sustainable Policy. European fi shing and aquaculture industry. From the exploration of new market outlets to fl eet modernisation and fi shing capacity reduction, the European Fisheries Fund is a powerful tool for European Fisheries Fund (EFF) operations managing the European fi sheries sector. The priority measures under the EFF cover: The fund has been operating since 2006 and ● measures to adapt the EU fishing fleet: substitutes the Financial Instument for Fisheries financial assistance is available to fishermen Guidance (FIFG) which, for many years, was the EU and fishing vessel owners affected by the instrument for the structural reform of the fi sheries measures taken to combat overfishing or to sector. protect public health to help them temporarily or permanently lay up fishing vessels and to The newly set EFF operates alongside the Structural train, re-skill and provide early retirement Funds Operational Programmes for the same period to fishermen. There is also funding for 2007- 2013. modernising fishing vessels - e.g. to reduce discards, improve gear selectivity and minimise environmental impact while at the same time The Common Fisheries Policy (CFP)69 may only be ensuring that there is no increase in catching twenty years old but it needed to be reformed as it capacity was not effective enough in doing what it had been created to do, that is to conserve fi sh stocks, protect ● measures regarding the aquaculture, the marine environment, ensure the economic inland fishing, processing and marketing: viability of the European fl eets and provide good the EFF promotes the purchase and use of quality food to consumers. The decrease in fi sh methods which reduce the impact of fishing stocks has a signifi cant negative knock-on effect on the environment and improve both human on fi shermen's incomes, the balance of the marine and animal health as well as safety and quality ecosystem and the supply of fi sh to the EU market. of the produce. Assistance can be made A reform was necessary to achieve biologically, available for projects improving the quality and environmentally and economically sustainable marketing of the fisheries products. Aid is to fi sheries. be limited to micro, small and medium sized entreprises. The reform of the Common Fisheries Policy defi nes ● collective action: towards sustainable economic, environmental and social goals in the development or conservation of resources, fi sheries sector which can be addressed through improving the services offered by fishing ports, projects supported by the European Fisheries Fund. strengthening markets in fishery products and In reform context the Fund may grant fi nancial promoting partnerships between scientists and support in order to: operators in the fisheries sector; ● ensure the long-term future of fishing activities ● sustainable development of coastal and the sustainable use of fishery resources; fishing areas: the EFF supports measures ● reduce pressure on stocks by matching EU and initiatives aimed at diversifying and fleet capacity to available fishery resources; strengthening economic development in areas ● promote the sustainable development of inland affected by the decline in fishing activities. fishing; ● help boost economically viable enterprises in the fisheries sector and make operating Croatia will be able to benefi t from the EFF upon its structures more competitive; accession to the EU and is preparing for its utilisation ● foster the protection of the environment and through the SAPARD and IPA-Rural Development marine resources; programmes. ● encourage sustainable development and improve quality of life in areas with an active fishing industry.

69 For further information about the Fisheries policy and the European Fisheries Fund, please, follow the link: http://ec.europa.eu/ﬁ sheries/cfp_en.htm 136 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

Since Croatia is not a full member of the EU, EFF- type of actions have been ﬁ nanced by the Phare programme, under the Fishery sectoral policy. The following example illustrates the type of action which even in the current stage of accession preparations signiﬁ cantly supports the implementation of the Common Fisheries policy:

Programme: Phare 2005 Fishing Pier in the town of Umag - Works

Budget: EUR 1.4 million

Objectives and Results: The construction of the Fisheries Pier will improve the effi ciency of fi shermen's work as well as enhancing the fi sheries sector in the County of Istria. With this project the fi sheries sector receives signifi cant pre-accession assistance for the fi rst time and aims to strengthen institutional capacity, fi sheries inspection and its local structures.

The project represents one of seven components within the project 'Support to Croatia in the preparation and implementation of the Strategy to develop the ﬁ sheries sector within the context of alignment and enforcement of the 'acquis' comprising the Common Fisheries Policy (CFP)'. The overall budget is EUR 5,154 million, of which Croatia contributes EUR 838.000.

A further three components of the total seven deal with technical assistance and aim to: ● build on institutional capacity and support the Directorate of Fisheries in the administration and control of the common fisheries policy ● design and implement a national fisheries strategy and delivery mechanisms for the organisation of the market in fisheries ● assess of demersal fish and shellfish stocks which have been commercially exploited in Croatia

The fi nal three components include two aimed at strengthening the Fisheries Department (IT and equipment for fi sheries inspection), one which supports the representative fi sheries association which has been tasked with a pilot project to establish the fi rst Producer Organisation in the Fisheries sector charged with with freezing, product storage and primary processing equipment.

Who benefi ted from the project? The main benefi ciary is the Port Authority of Umag-Novigrad but also fi shermen of the region. Overall coordination of the project is managed through the Ministry of Agriculture, Fisheries and Rural Development.

137 European Funds for Croatian Projects

BENEFITS OF CROATIAN EXPERIENCE WITH IPA IN PREPARATIONS FOR MANAGEMENT OF STRUCTURAL INSTRUMENTS

The Structural Instruments should be seen as Drafting the Strategic Coherence Framework for IPA a direct continuation of actions undertaken in Components III and IV will be of direct benefi t when preparation for management of the IPA in Croatia it comes to drafting the National Stategic Reference but on a larger scale and wider scope. Framework in terms of the document’s content (structure of description, analysis and strategy) As mentioned before, one of the prime objectives and processes – consultation with all relevant of IPA is “to prepare Candidate Countries for the stakeholders (from key ministries, employers successful management of Structural Instruments”, associations, trade unions and NGOs). The second which many argue has been overlooked in previous step, again as with IPA, is that Croatia will develop pre-accession programmes. a certain number of Operational Programmes corresponding to the priorities identifi ed in the The experience gained in Croatia in preparation for NSRF. IPA is not only extremely valuable at all stages but also sets the basis for the management of Structural The following Figure 23 compares the hierarchy Instruments: of Programming Documents under Structural Instruments in the new Member State (Bulgaria) Programming is the fi rst step in putting the use of with the IPA components III and IV in Croatia and Structural Instruments into practice as it was with shows that essentially, in their content, they support the IPA. the same type of actions and investments.

Figure 23. Structure of Programming documents under Structural instruments in Bulgaria and Structure of Programming documents under IPA in Croatia

Structure of Programming documents under Structural instruments in Bulgaria

OP – Regional Development

OP – Competitiveness

NSRF in OP – Human Resource Development Bulgaria OP – Environment

OP – Transport

OP – Administrative capacity

Structure of Programming documents under IPA in Croatia

OP – Environment

OP – Transport SCF in Croatia OP – Regional Competitiveness

OP – Human Resource Development

Monitoring and Evaluation under Structural The Institutional Structure required for the Instruments can be compared with provisions management of Structural Instruments in essence already created for IPA, establishment and is the same as in IPA but, naturally, corresponds operations of monitoring committees and experience to a wider range of eligible activities. Many more from evaluations of previous IPA Operational institutions in Croatia will have to be increasingly programmes. involved at a national but even more so at a 138 EU FUNDING OPPORTUNITIES FOR CROATIA AFTER ACCESSION

How is the fi nancial allocation under regional and local level where targeted actions are Structural Instruments to be calculated for to be invested i.e. participation in programming, high quality projects preparation, building stronger Croatia? partnerships and fi rm horizontal and vertical cooperation. Since 1988 the parameters for the calculation of fi nancial allocation within Structural Instruments The creation of a functioning Financial Management are the Statistical Territorial Units (NUTS). The and Control System under IPA is the optimum parameters for determining NUTS I, NUTS II, NUTS way to ensure sound fi nancial management and III regions are: i) the surface and ii) the population of adequate assurance for safeguarding the fi nancial the region. The elligibility of regions for the Cohesion interests of the Community when it comes to Fund is calculated at NUTS I level, for the ERDF at Structural Instruments funding. NUTS II level, the ESF at NUTS II and III level and for the European Territorial Cooperation Objective/ ERDF at NUTS III level. The statistical units are shown in Map 10.

Map 10. Classiﬁ cation of Statistical Territorial Units in Croatia

The following table shows the NUTS classifi cation in Croatia in accordance with EC Regulations on the establishment of a common classifi cation of territorial units for statistics. Eurostat approved Croatia’s NUTS classifi cation in March 2007, as shown in Table 38.

139 European Funds for Croatian Projects

Table 38. Classiﬁ cation of statistical territorial units in Croatia

Level Population No. of regions in Croatia

NUTS I 3.000.000 < n < 7.000.000 1 (whole territory of Croatia)

3 Regions (Central and East Region, Adriatic Region; NUTS II 800.000 < n < 3.000.000 North-Western Region)

NUTS III 150.000 < n < 800.000 21 Counties (incl. City of Zagreb)

According to the Eurostat ﬁ gures, Croatian GDP per capita in 2007 was EUR 8 445 which is 58% of the average for the EU-25 GDP per capita, meaning that upon accession the whole territory of Croatia will probably beneﬁ t from funding under the Convergence Objective.

Preparations for the management of Structural Instruments in Croatia – State of play and challenges ahead

Within the framework of the Croatian accession The period ahead is going to be extremely negotiations process activities have signifi cantly important, almost decisive for Croatia’s future in advanced in Chapter 22, Regional Policy and the management of Structural Instruments. The Coordination of Structural Instruments, as they actual fi nancial budget for Croatia under Structural have in other negotiated chapters of the acquis. . Instruments and the perception of Croatian Within the mentioned chapter, the relevant national institution’s ability to manage those funds is going authorities have demonstrated an understanding of to be directly derived from the results and practices the requirements stemming from the EU Cohesion shown within the Pre-accession funds, especially Policy and have set clear objectives and deadlines IPA. For this reason, Croatia needs to maximise the in order to fulfi l them. pre-accession period and set solid grounds for the successful handling of future funds for the benefi t of Due to the complexity of the Cohesion Policy and its all Croatian citizens. horizontal nature, signifi cant numbers of chapters under negotiation are closely connected to Chapter 22 (public procurement, competition, fi nancial control, social policy and environment) and are going to have an impact on the pace of negotiations. Additionally, Croatian authorities will have to put the signifi cant efforts in establishing effi cient national and regional institutions (for instance, competent staff) so as to prove to the EC services its ability for sound fi nancial management of allocated funds.

140

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● An overview of the types of management of EU financial instruments and framework documents for Croatia, ● Explanation of procedures for the awarding of grants and public contracts, ● Tips on how to benefit from EU grants and public contracts.

HOW ARE THE EU FINANCIAL INSTRUMENTS MANAGED?

At present the EU fi nancial instruments are based ● Joint management, where certain upon the following main types of management: implementation tasks are delegated to international organisations. ● Centralised, meaning that programme management is conducted at the European As regards Community Programmes71, they Commission Headquarters (Brussels) on represent a specifi c case in terms of EU funds’ behalf of the government of the beneficiary management. Most of them encompass both country. centralised and decentralised measures/actions, but ● Deconcentrated, meaning a transfer of some programmes are fully centralised, for instance responsibility for the management of assistance the Seventh Framework programme for Research programmes from EC Headquarters (Brussels) and Technological Development. to the EC Delegation in the beneficiary country, covering all phases of the project cycle. In the case of centralised actions or programmes the ● Decentralised implementation of the EC EU funds are managed by the Commission itself or by external aid programmes, meaning a partial executive agencies appointed by the Commission72. transfer of responsibility for the management of These are legally independent bodies but they are assistance programmes from EC Headquarters fi nancially tied to the Commission, as they receive (Brussels) to the authorities of the beneficiary their funds from the Commission and implement the country, covering the implementation phase Commission’s policies. of the project cycle, whilst the Commission retains the final responsibility under the EC All of the EU Financial Instruments operate on the Treaties (DIS – Decentralised Implementation basis of a specifi c EU regulation which defi nes the System). thematic areas and their respective fi nancial rules. ● Shared management, with regard to the EU Furthermore, each Partner Country is required to Structural Funding for Member Countries70. It respect and implement these rules on a national determines that national authorities manage basis. the payments to beneficiaries on behalf of the Commission.

WHAT ARE THE FRAMEWORK DOCUMENTS FOR CROATIA IN RELATION TO EU FINANCIAL SUPPORT?

As mentioned, EU funds are managed in different The EU fi nancial support for Croatia is based on ways, but whatever the form of management, it is certain documents which will help in the planning important to underline that the EU support projects, and use of this support during the accession process initiated and implemented by different benefi ciaries, of the country and also help the wellbeing of the coming from varying sectors of economic and citizens in the economic, democratic and social social life. The projects supported have to meet spheres of life. the specifi c and general aims of a certain Financial Instrument, of a certain European policy.

70 Structural funds, Cohesion fund and EU funds in the ﬁ eld of Agriculture and Fisheries are presented in Chapter IV 71 All Community Programmes in which Croatia participates are presented in Chapter III 72 http://europa.eu/agencies/index_en.htm 142 HOW TO BENEFIT FROM THE EU ASSISTANCE

WHAT WE HAVE TO KNOW?

● The contractual framework for relations ● From the perspective of the Republic of between the EU and Croatia prior to its Union Croatia, the principle strategy document is the accession is provided by the Stabilisation and Strategic Development Framework (SDF). The Association Agreement (SAA) which came into SDF defines Croatia’s national economic goals force on 1st February 2005. and the instruments for their implementation in ● Financial assistance for Croatia is accession the period between 2006 and 2013, with the driven and actions stem from priorities identified overall aim being to achieve prosperity by the in the Accession Partnership for Croatia. development of a competitive economy and by ● The enlargement package is accompanied social cohesion. by the Multi-annual Indicative Financial ● Each year the Commission and the Croatian Framework (MIFF). The MIFF is designed government sign financial agreements defining to provide information on the Commission's the European assistance for each of the EU intentions in terms of indicative financial Financial Instruments operating in Croatia. allocations by country and by component. This financial matrix forms the link between the Furthermore ﬁ nancial support has to be well political framework and the budgetary process. planned before EU money can reach individual It is revised annually, on a rolling three-year beneﬁ ciaries. The current Financial Instrument basis. The latest Multi-annual Indicative for Croatia is the Instrument for Pre-accession Financial Framework is shown in Chapter II. Assistance (IPA). It includes Project Fiches (PFs), ● The Multi-annual Indicative Planning Operational Programmes (OPs) and Agriculture and Document (MIPD) for Croatia is based on Rural Development Plan, resulting from a process the MIFF allocations, and on the priorities known as a programming process. By adopting identified within the political framework, and a programming approach, IPA Components are presents the Commission’s specific objectives intended to prepare Croatia for the management and choices for pre-accession aid . These also of the Structural and Cohesion Funds upon cover a three-year period. accession.

All these documents provide the general framework The programming process determines: of EU funding for Croatia’s pre-accession process. □ the objectives and main directions of expenditure Within the scope of these policy priorities, the within a given sector, Croatian government elaborates its own national □ the national institutions responsible for the strategies and programmes for the development of relevant funds’ coordination and management, speciﬁ c sectors e.g. regional development, social □ indicative amounts and split of resources by cohesion, energy, transport, agriculture, etc. At the sectors and measures. same time these national strategic documents reﬂ ect the EU strategic policy priorities as a strong link is Types of the Programming documents relating to needed between the national and the European IPA components are shown in the Table 36 below: policies with a view to Croatia’s future membership in the Union.

Table 39. Relevant programming documents per IPA components

Operational Agriculture and Rural IPA component Project ﬁ ches Programmes Development Plan

I. TRANSITION ASSISTANCE AND √− − INSTITUTION BUILDING

II. CROSS-BORDER COOPERATION −√ −

III. REGIONAL DEVELOPMENT −√ −

IV. HUMAN RESOURCES DEVELOPMENT −√ −

V. RURAL DEVELOPMENT −− √

143 European Funds for Croatian Projects

Once the Project Fiches, Operational Programmes Furthermore, responsible institutions are tasked and Agriculture and Rural Development Plan have with assessing, contracting and monitoring the been prepared and approved by the European selected projects. Commission, the relevant authorities in Croatia Figure 24 below shows the key milestones have the task of instigating their implementation concerning the preparation and implementation of by selecting thousands of projects. Therefore, Operational Programmes in Croatia and refers to programmes pave the way for individual projects. other chapters of this handbook.

Figure 24. Milestones for preparation and implementation of Operational Programmes in Croatia

2006 2007 2008 2009 2010 2011 2012

REGULATORY FRAMEWORK PREPARATION

OPERATIONAL PROGRAMME PREPARATION Regulatory − Drafting of Operational Programmes level − Setting up of Management structures and stafﬁ ng − Preparation of the legal framework FINANCIAL MANAGEMENT − Setting up of procedures for payments, controls, audits, detection of irregularities, recoveries, etc. INFORMATION AND PUBLICITY − Preparation and implementation of Communication Plan for raising public awareness REPORTING, MONITORING AND EVALUATION Operational Programme level − Setting up of procedures for regular reporting, monitoring and evaluation ARCHIVING − Setting up of procedures for archiving OPERATIONAL PROGRAMME − From Programme to Projects, Call for proposals and Call for tenders, grants and public contracts in (see Chapter V) PROJECT PROPOSALS DEVELOPMENT − Needs and problems identiﬁ cation, activity and resource planning (see Chapter VI) PROJECT MANAGEMENT

Project level − Practical steps on how to implement an EU funded project, − Useful practical tools in EU project management (see Chapter VII)

Individual projects do not run independent from the EU funds are distributed amongst projects on a Operational Programmes. Projects must achieve competitive basis. In order to select the best projects their speciﬁ c objectives but also contribute to the in their respective ﬁ eld the European Commission attainment of the wider programme objectives of and its agencies, as well as the Contracting strategic importance. Projects are about delivering Authorities at national level, must organize calls for outputs and results. Based on these results, proposals and calls for tenders. programmes aim at achieving impact for the communities and the areas of development. Figure 25 below illustrates the process starting from the respective EU Financial Instrument and ending with the individual contract.

144 HOW TO BENEFIT FROM THE EU ASSISTANCE

Figure 25. From the EU Financial Instrument to the single contract

EU Financial Instruments

Project Fiches / Operational Programmes / Rural Development Plan

Tendering of Projects/Priority Measures/Operations

Calls for project proposals Call for Tenders

Procurement contracts for: - Services Grants - Supplies - Works

Selection / Evaluation of the received project proposals / tenders

Financing (including co-ﬁ nancing) of individual contracts

Implementation of the signed contracts

Implementation of the grant contracts Implementation of the particular including sub-contracting of: contracts for: - Services - Service - Supplies - Supply - Works - Works

In Croatia, calls for proposals and calls for tenders are issued by the Contracting Authorities for the implementation of Project Fiches (IPA Component I), Operational Programmes (IPA Components II, III and IV), or Rural Development Plan (IPA Component V)73.

Table 40 below indicates types of calls for proposals per IPA components in Croatia.

Table 40. Type of calls per IPA components

Call for Call for tenders IPA components proposals Twinning Grants Services Supplies Works

I. TRANSITION ASSISTANCE AND √√√√√ INSTITUTION BUILDING

II. CROSS-BORDER COOPERATION √√√−−

III. REGIONAL DEVELOPMENT √√√√−

IV. HUMAN RESOURCES DEVELOPMENT √√√√−

V. RURAL DEVELOPMENT √√√√−

73 Further references on institutions and web-sites are provided at the end of this chapter. 145 European Funds for Croatian Projects

In the case of centralised management, the EU regularly publishes calls for proposals and call for tenders. These are organised either by the European Commission in Brussels, its agencies, or 74 its Delegations to the beneﬁ ciary countries . To kknownow more

GrantGrant schemescheme:: a programmeprogramme which determines GRANTS the objectivesobjectives and scale of assistance in the form of ggrantsrants for actions promotinpromotingg EC policypolicy aims. What is a grant? The ggrantrant scheme is ororganisedganised throughthrough calls forfor proposals.proposals. Each approved proprojectject receives a singlesingle grantgrant as part of the overall budgetbudget for the grantgrant A grant is a direct payment to a specifi c benefi ciary. scheme.scheme. The Commission awards money in the form of grants in order to implement projects or activities in GrantGrant benefi ciarciary:y: the bodbodyy which signssigns a grantgrant relation to European Union policies. These grants contract.contract. may be awarded within fi elds as diverse as research, Final benefi ciariesciaries:: thosethose whowho will benebenefi t frfromom ththee education, health, consumer protection, protection of projectproject inin thethe longlong term at societysociety levellevel or thethe sector the environment, humanitarian aid, etc. Grants are at large.large. formally direct fi nancial contributions to benefi ciary organisations from the EU budget. However, the ContractingContracting AuthoritAuthority:y: i.e. the European European Commission and the government of the CommissionCommission services in Brussels, its Agencies,Agencies, benefi ciary country will have agreed, in advance, European Commission Delegations,Delegations, and on the grant schemes and the project types to be ImplementingImplementing Bodies forfor each IPA component in included in the relevant EU programme75. Croatia.Croatia.

Implementation of the Grant schemes follows the rules and procedures of the Practical Guide for contract procedures for EC external actions, known as the Practical Guide or just PRAG76.

Who can apply for a grant?

Beneﬁ ciaries of grants are mainly public, private and non-governmental organisations. Eligibility of beneﬁ ciaries (who can apply for grants - types of organisations, their legal status, country of origin etc.) is stipulated in the Call for Proposals and in the respective guidelines for applicants.

Example for a grant scheme from the Operational Programme “Human Resources Development” for Croatia

Priority 2 – Reinforcing social inclusion of disadvantaged people, Measure 2.1. Supporting employment access for disadvantaged groups Contracting Authority - Croatian Employment Service Who can apply for a grant under Priority 2, Measure 2.1 of the Operational Programme “Human Resources Development”? - Non-proﬁ t NGOs, private/public institutions operating at the regional local level, regional/ municipal development agencies and SME support centres/technological incubators. What are the target groups? - Persons with disabilities, those with low levels of educational attainment, unemployed young people, older and long-term unemployed, women, people living in underdeveloped regions, minority groups. What type of activities can be funded? - Development of new models and business solutions for work with disadvantaged groups; training of staff (basic and advanced) in the employment and social welfare services to work with disadvantaged groups; training and retraining of disadvantaged groups; etc.

74 http://ec.europa.eu/europeaid/work/funding/index_en.htm 75 Further information on EU grants is available at: http://ec.europa.eu/grants/introduction_en.htm 76 http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm 146 HOW TO BENEFIT FROM THE EU ASSISTANCE

Planning of grants

Each year, prior to the issuing of Calls for proposals, The Call for Proposals is a short notice published by an Annual Work Programme for grants has to the Contracting Authorities indicating the: be prepared and published by the Contracting Authorities in Croatia not later than 31st March . The ● publication reference; Annual Work Programme for grants specifi es: ● nature of activities and location; ● funding instrument or programme; ● the basic legal act and budget line , ● webpage for downloading Guidelines for ● the programme’s objectives, priorities and applicants’ package expected result, ● date and time of the deadline for submission ● the conditions of eligibility, of proposals. ● the selection and award criteria, ● the maximum amount of the grant, ● the schedule of Call for Proposals, What is a Guideline for applicant’s package? ● the available budget of the Call for Proposals, etc. This is a standard set of documents prepared for The Contracting Authorities take measures to participants in a Call for Proposals with information ensure that the Annual Work Programme for and requirements they need to know in order to grants is published locally and on the EuropeAid prepare their project proposals. Main documents Cooperation Offi ce website77. If you plan to apply that might be included are: for an EU grant in a fi eld of your particular interest, ● Call for Proposals, don’t fail to consult the relevant work programmes ● Guidelines for applicants, of the Commission services or Croatian Contracting ● Application form, Budget template, Logical Authorities. framework matrix, ● General conditions for the implementation the How are grants awarded? EC financed grant contracts, ● Contract award procedures, Grant application procedures are used in the process ● Draft standard grant contract, of project selection as part of the grant schemes and ● Other standard templates for financial and programmes. They are explained within the Calls for narrative reporting. Proposals documents and interested organisations are invited to apply with their project proposal to Basically, Guidelines for applicants defi ne the: the Contracting Authority running the relevant ● eligibility of the applicant and their partners to programme. Bear in mind, that for centralised calls get financing (for example: NGOs, SMEs, local (for example some of the Community programmes) authorities etc.), the project application should be sent to the ● actions for an application to be made, European Commission or its agencies, while for ● costs eligible for financing, decentralised ones the application package should ● application procedure to be followed, be submitted to the relevant Contracting Authority ● evaluation and selection procedures, at national level (these are the Implementing bodies ● supporting documents needed for composing for all IPA components in Croatia). the whole application package: except the Application form, Budget and Logical Framework matrix, the other relevant documents, could What is a Call for proposals? be: business plans (for SMEs), statutes (for NGOs), Municipal councils’ decisions (for local Calls for proposals invite candidates to submit, within authorities), etc. a given deadline (usually 60 or 90 days), a project proposal that corresponds to the requirements of An indicative time schedule for different phases of the particular Call. Since grants cover a very diverse grant scheme management is shown in the Figure range of fi elds, the specifi c conditions that need to 26. be fulfi lled may vary from one area of activity to another.

77 http://ec.europa.eu/europeaid/cgi/frame12.pl 147 European Funds for Croatian Projects

Figure 26. Indicative time schedule for grants scheme implementation

Preparatory work Final decision for Registration of Selection/Evaluation by Contracting grant awarding applications of applications Authority Signing of the Grant contracts

0 1 2 3 4 5 6 7 8 9 10 11 12 month Start of project Duration of the Supporting documents activity according Call for proposals and and Draft contract to signed contract Helpdesk for applicants preparation

Guidelines (plus annexes) are drafted for each Call for Proposals by the Contracting Authorities using a template provided in PRAG and speciﬁ cally adapted to each grant programme. They explain the conditions applicable for the implementation of the action following the Contracting Authority’s decision to award a grant.

The Practical Guide to Contract Procedures for EC External Actions consolidates all the grants procedures under the relevant EU external aid programmes. It is strictly prohibited to award a grant to a project without undergoing a competitive bidding process.

How projects are selected and awarded?

Submitted projects are evaluated according to Once the contracts have been signed, the the selection and award criteria published in the Contracting Authority ensures that a notice of Guidelines for Applicant’s. award for each Call for Proposals is prepared and transmitted to the EC which publishes the results on The selection criteria are intended to help evaluate the EuropeAid website, the award is also published the Applicants' fi nancial and operational capacity to locally. ensure that they: In compliance with the principle of transparency, ● have stable and sufficient sources of finance by 30th June each year, the European Commission to maintain their activity throughout the period publishes on its web page the list of grants awarded during which the action is being carried out during the previous year, with the exception of those and, where appropriate, to participate in its awarded in the form of individual scholarships to78. funding; ● have the management capacity, professional Grants have a non-commercial nature meaning competencies and qualifications required to they cannot lead to a profi t for their benefi ciaries. As successfully complete the proposed action. a general rule, grant contracts require co-fi nancing This also applies to any partners of the by the grant benefi ciary. This means that project Applicant. implementing organisations should provide their own contribution to the project, which has to take The award criteria allow the quality of the proposals the form of fi nancial (i.e. cash) contribution. submitted to be evaluated in relation to the objectives and priorities set. They enable the Contracting Co-fi nancing rates are established in the Calls for Authority to be confi dent that the selection of Proposals and the rates vary depending on the proposals comply with award objectives and priorities nature of the programme (e.g. usually 10-25% co- and guarantee the visibility of EC fi nancing. The fi nancing is required for NGOs and up to 50% - for criteria cover such aspects as the relevance of the SMEs grant schemes). action, its consistency with the objectives of the Call for Proposals, quality, expected impact, sustainability An applicant’s contribution might come from their and cost-effectiveness. It is becoming increasingly own budget or from external sources. It would be an important for the EU to support innovative projects. exception for the EU to entirely fi nance approved This should be kept this in mind when developing a projects. project proposal, in order to gain a competitive edge in the selection process.

78 http://ec.europa.eu/grants/beneﬁ ciaries_en.htm 148 HOW TO BENEFIT FROM THE EU ASSISTANCE

PUBLIC CONTRACTS Who is an eligible candidate?

The competition for EU funded public contracts As well as grants being awarded following Calls in general is open to all natural and legal entities for Proposals, the Contracting Authorities in the which are established and do business in an EU benefi ciary countries may also decide on public Member State, Candidate or benefi ciary country of contracts. After the signing of the Grant contract, an EU programme. Candidates for public contracts grant benefi ciaries, being the Contracting Authorities should be able to deliver, and have no constraints in for a certain contract are also obliged to observe providing the required services, supplies or works. strictly the principles for the awarding of public contracts. Contracts for experts, especially for those on long- 79 What is a public contract? term assignments, are rarely concluded with an individual but rather with a company which, as A public contract is awarded following a competitive the winner of a competitive tendering process, procurement procedure which is initiated when the undertakes to provide the services of the selected Contracting Authority wishes to purchase: experts, to deliver the requested outputs and also ● a service (e.g. provision of technical assistance, to manage the activities and overall implementation training, know-how), of the project. ● supplies /goods (e.g. equipment and materials) or ● works (e.g. building infrastructure). How to be awarded a contract?

The awarding of public contracts is based on the There are strict EU rules governing the way in principles of transparency, equal treatment, non- which contracts are awarded. These rules apply to discrimination of candidates and “value for money”. all countries which are beneﬁ ciaries of EU funding. However there is a difference between the public contracts’ rules applied in the EU Member States, What is the difference between a grant and a e.g. in the context of EU Structural Funds and those public contract? applied in the non-member countries.

Regarding grants; the Contracting Authority awards Public procurement rules are one of the most a grant contract to a project proposal carried out by monitored areas in the Member States of the a public, private or non-governmental organisation. European Union. In the area of public contracts EU The grant has a non-commercial nature and cannot Member States implement the specifi c EU legislation lead to a profi t for the benefi ciaries. concerning the Structural and the Cohesion Funds. Additionally, they also apply the national public Regarding public contracts; the Contracting procurement legislation, the latter being harmonised Authority contracts and pays for services, supplies with the EU acquis. or works, as it needs. Contracts are of a commercial nature. Competitive tendering is the basic principle On its way toward EU accession, Croatia is governing the award of contracts. supposed to establish and maintain (for both grants and procurement contracts) a system which meets the EU standards of transparency, as well as open Who can be awarded a public contract? and fair competition. As regards the EU external aid programmes, Any private entity can participate in EU-funded including those operating in Croatia, the procurement contracts as a provider of goods, services or procedures are consolidated and explained in the works. Contracts are only concluded with eligible Practical Guide (PRAG) . candidates, based on competitive tendering. As regards the EU external aid programmes, including those operating in Croatia, the procurement procedures are consolidated and explained in the Practical Guide (PRAG)80.

79 Further information on EU public contracts http://europa.eu/agencies/public_contracts/index_en.htm 80 http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm 149 European Funds for Croatian Projects

Which procedures to apply? The Practical Guide is the working tool describing the harmonised procedures and rules referring to Rules for the application of standard procurement EU external aid contracts. According to PRAG, procedures are summarised in the table below. They procurement procedures are governed by speciﬁ c are divided between those for services, supplies rules which vary depending on the nature and and works. threshold of the contract (service, supplies, or works). These help to ensure that suitably qualiﬁ ed Where contracts are subdivided in lots, the value of contractors are chosen without bias and that the best each lot is taken into account when calculating the value for money is achieved, with full transparency overall threshold. appropriate to the use of public funds.

To participate in a tendering procedure it is important to carefully consult the published What is a lot? procurement notices Consulting PRAG gives a better understanding of the relevant procedure and A Contracting Authority may decide to divide the the way of its application. public procurement into separate parts or “lots”. Whenever the subject of procurement is divided into Be aware that tender notices are generally published parts, the Contracting Authority divides the contract in the language of the EU programme, usually into lots. English.

The thresholds given in Table 41 are based on Public procurement procedures the maximum budget for the contract in question (including any co-ﬁ nancing). Competitive tendering is the basic principle governing the award of contracts. It ensures the transparency of operations towards obtaining the desired quality of services, supplies or works at the best possible price. There are several different procurement procedures, each allowing for a different degree of competition.

Table 41. Threshold for public procurement contracts as per the Practical Guide for contract procedures

International tender Type of contract Local tender procedures* Single tender procedures

SERVICES (in EUR) ≥ 200,000 < 200,000 but > 10,000 ≤ 10,000

International restricted Rule: Framework contracts Single tender tender procedure Exception: Competitive negotiated procedure

SUPPLIES (in EUR) ≥ 150,000 <150,000 but ≥ 60,000 <60,000 but > 10,000

International open tender Local open tender Competitive negotiated procedure procedure procedure

WORKS (in EUR) ≥ 5,000,000 < 5,000,000 but ≥ 300,000 < 300,000 but > 10,000

Rule: International open Local open tender Competitive tender procedure procedure negotiated procedure Exception International restricted tender procedure

* Two additional procedures are applied in exceptional cases: competitive dialogue and negotiated procedure.

150 HOW TO BENEFIT FROM THE EU ASSISTANCE

Main types of procedures What is a tender dossier?

Restricted procedure – applied to service This is a standard set of documents prepared for contracts tender participants and contains information and requirements needed for the bidding process. This is a two-stage approach in which interested Although tender dossiers vary according to the providers undergo pre-qualifi cation assessment relevant services, supplies and works, the main before being invited to tender. documents that might be included are: □ the invitation to tender, All interested candidates may take part in this □ the list of all companies invited to tender, with fi rst stage. Candidates are invited to submit their contact details, expression of interest and other relevant information □ instructions to tenderers – how, when and where specifi ed in the procurement notice. If a company to submit the tender, including full details on the does not meet the criteria for participation in a content of the technical and fi nancial proposals tender, it might consider forming a consortium of and the evaluation criteria that will be applied, partner-organisations, who together may be able □ specifi c tender conditions in certain cases, to respond to the requirements of the procurement □ the Terms of Reference (TOR) for services – notice. instructions and guidance to tenderers about the nature of the proposal that they need to submit, The written responses and related documentation □ technical specifi cations for goods, received are examined and a shortlist of selected □ design documentation for works, candidates drawn up. □ draft standard contract. Selected companies must be eligible and competent to do the required job. The shortlist for any tender is Each of the short listed candidates must submit made public at the tendering stage and unsuccessful both a technical and a fi nancial proposal under candidates are informed. the EU “double-envelope” system. Under this system, each technical and fi nancial offer must be placed separately in sealed envelopes, and What is a shortlist? then both placed within an outer envelope. The outer envelope should carry specifi c information It is the result of a selection procedure, by which such as: the reference number of the invitation to the long list, comprising all candidates responding tender, the project title, the name of the tenderer, to a published notice, is cut down to a shortlist. The the phrase “Offer - Not to be opened by the internal selection involves an examination of the responses mail service”, the address for submission and the to the procurement notice, in which the selection posting date. and award criteria and a general description of the tasks to be undertaken are set out. The shortlist comprises as many fi rms as necessary to ensure Technical Proposal reasonable choice and competition. As a general rule, between 4 and 8 companies/consortia are In addition to some formal documentation, the short-listed. technical proposal must contain: ● detailed information on the organisation, In the second stage of the procedure, the short listed methods and staff that the tenderer intends to candidates receive from the Contracting Authority use in order to provide the required services, the so-called tender dossier and are invited to bid. ● a work plan giving an outline of the proposed work approach, ● a list of activities, ● inputs (expertise, equipment, direct costs, etc.) and the envisaged outputs and results, ● a list of the key staff to be employed under the project, along with the experts’ CVs describing their relevant experience and the actions they are to carry out.

151 European Funds for Croatian Projects

The Financial Proposal and take the form of separate contracts but are should contain a breakdown of the budget needed concluded in identical terms. to fund the activities described in the technical proposal. The framework contractors bring to the external assistance programmes the combined resources Tenders are then evaluated by an Evaluation of specialised expertise from across the Member Committee consisting of selected offi cials and experts States and the Candidate and Acceding Countries. who adjudicate against a set of pre-determined evaluation criteria. Both the technical and fi nancial offers are evaluated. The Committee recommends Open Procedure – applied to works and supply the successful tenderer to the Contracting Authority contracts on the basis of the most economically advantageous offer. The contract is then awarded and signed. The The value and type of contract determines whether Committee may also cancel the procedure under it be an international or a local open tender. specifi c circumstances. Open Calls for Tenders are where all interested Framework contract – applied to service contracts economic operators may submit an offer. Under the open procedure, any natural or legal person The EU has a system of Framework Contracts wishing to tender may request the tender dossier, (FWCs) for smaller contracts (i.e. less than € 200 (sometimes requiring payment). There is no pre- 000). Generally contractors are selected by the qualifi cation assessment. All suppliers who request European Commission through restricted procedure tender documentation are invited to submit an offer following an open call for pre-qualifi cation. The list of as part of the tender itself. companies to act as service providers under FWCs remains valid for a given period. When the received offers are examined, there is an initial verifi cation of the formal requirements. The Commission has concluded separate FWCs Following this there is technical assessment and with a number of consortia covering sectors such then comparison of the submitted offers as: agriculture, administrative reform, banking and fi nance, energy, environment, export development The “double-envelope” system is not used in and investment promotion, health, information this instance. However offers undergo fi rst a technology, posts and telecoms, privatisation and technical and then a fi nancial evaluation. Only restructuring, SME and regional development, tenders that satisfy the technical requirements social development, and transport. are then proceeded on for fi nancial evaluation. The economically most advantageous offer (i.e. Each consortium is represented by a lead company cheapest offer in compliance with the Technical which has been designated by the other partners to Specifi cation) is selected and is awarded the act on their behalf for the purposes of the contract. contract. No negotiations are allowed.

A framework contractor is specialised in its own particular sector and offers consultants, expertise and other services in this sector. No public announcement of a contract is required by the Contracting Authority. Instead, a “request for services” is sent directly to the appropriate framework contractors. The framework contractor prepares an offer which includes the CVs and costs of the proposed experts.

Selection is then made from the submitted offers following evaluation. If a framework contractor cannot provide a particular service from its own resources, other parties might be subcontracted. Therefore, it is possible for external individuals or other companies to obtain work through framework contractors.

The Framework Contracts established with several companies are called Multiple Framework Contracts

152 HOW TO BENEFIT FROM THE EU ASSISTANCE

Example from the Operational Programme “Regional Competitiveness”, Priority Axis 2 - Enhancing the Competitiveness of the Croatian Economy, Measure 2.2 – Technology transfer and support services for knowledge- based start-ups, Operation 2 - BioCentre

Contracting Authority: Central Finance and Contracting Agency What is envisaged under Operation 2? – This operation will create a BioCentre to provide the necessary facilities, equipment and services for an early development cycle and product development including the following: ● Laboratory space, certified according to Good Laboratory Practice (GLP) standards, for R&D purposes of start ups and SMEs; ● Central laboratory services such as sterilisation, cold room, dark room, liquid nitrogen storage, ice machine, storage of hazardous chemicals, waste chemicals handling, de-ionised water production etc.; ● Central scientific equipment such as ultra-centrifuge, analysis systems etc.; ● Office space with connections for telephone and internet; ● Central office services such as photocopying, answering service, reception, postage handling etc. Where will the BioCentre be located and what activities will it deliver? – The BioCentre will be located on the university campus in Zagreb and is envisaged as a national resource providing the entire infrastructure necessary for the start-up and incubation of new companies as well as for support of existing SMEs in the bioscience sector. It will have an additional important role in bringing the University closer to the economic and market needs as a direct facilitator of university-industry cooperation and to prepare scientists and students for a career in entrepreneurship or industry. Who is the fi nal benefi ciary of Operation 2? - The fi nal benefi ciary of Operation 2 under this measure is the Business Innovation Centre of Croatia Ltd (BICRO) – a national public body established by the government and acting as an implementing agency. How will Operation 2 be implemented? - This operation will be implemented by a number of procurement contracts necessary for constructing (works) and equipping (supplies) the centre.

Competitive Negotiated Procedure – applied to Authority is often unable to determine the technical services, supply and works contracts speciﬁ cations and the appropriate price level in advance. Up until 2004 the Negotiated Procedure When a Framework Contract is not applicable or is was the preferred solution for such cases. unsuccessful, a Competitive Negotiated Procedure is employed. Under the Competitive Negotiated The Competitive Dialogue is intended to replace the Procedure, the Contracting Authority invites tenders Competitive Negotiated Procedure as the routine from candidates of its choice. At least three service choice for such complex contracts, as the European providers should participate with a complete tender Commission felt that the Competitive Negotiated dossier and at least three compliant offers should Procedure resulted in the wrong tender being be evaluated. successful.

At the end of the procedure, the Contracting At present the Contracting Authority is permitted to Authority selects the tender with the best value use the Competitive Dialogue Procedure where: for money in the case of service tenders and the ● the nature of the works or services or the cheapest compliant offer in the case of supplies or related risks are such that an advanced overall works tenders. costing is not feasible, ● the specifications of services cannot be drawn Single Tender Procedure - applied to service, up with sufficient precision. supply and works contracts Negotiated procedure - applied to service, supplies The Single Tender Procedure is applied to low value and works contracts contracts (for Candidate Countries it is equal to or less than EUR 10 000). In this case, there is a This procedure can be used for works and services negotiation with a single supplier. at any value due to unforeseen circumstances or in case of urgency. It can also be used for special Competitive Dialogue - applied to service, supply cases, (e.g. a supplier has particular characteristics and works contracts such as the holding of patents or licenses), or in cases where a tender was cancelled. This procedure Many EU contracts are too complex to follow the open is relatively ﬂ exible and may incorporate a pre- or restricted tender procedures. The Contracting qualiﬁ cation process as in the Restricted Procedure. 153 European Funds for Croatian Projects

TWINNING No specifi c thresholds are applied. Be aware that public contracts are published on the internet as forecast notices, procurement notices Twinning is an initiative of the European Commission and fi nally as award notices. that was launched in 1998 in preparation for the enlargement of the European Union for Central European countries. It was conceived as an WHAT CAN GO WRONG WITH TENDERS? instrument for targeted administrative co-operation to assist Candidate Countries to strengthen their administrative and judicial capacity to implement As already explained, tenders go through Community legislation as future Member States examination and evaluation. (MS) of the European Union. Since then more than Initially offers undergo an administrative check of 1300 Twinning projects have been implemented and the required and submitted documentation, if it is fi nanced under CARDS and PHARE programmes. complete and correctly completed. The technical and fi nancial proposals are then assessed against Twinning continues to play a vital role in the context previously advised strict rules and criteria. It is often of Institution Building in the new Member States during this process that potential bids are found under the Transition Facility and it remains a crucial to have mistakes which eliminate their eligibility. institution building instrument fi nanced by IPA Common mistakes made by tenderers may be for component I in the current Candidate Countries - either administrative or technical reasons. Croatia, the former Yugoslav Republic of Macedonia and Turkey. Mistakes made for administrative reasons are most often due to: The main aim of Twinning is to help benefi ciary ● late arrival of the tender or incomplete countries in the development of modern and documentation, effi cient administrations, with the structures, human ● lack of original documents or lack of resources and management skills required to signatures, implement the acquis communautaire. ● the required documents not being submitted in the desired format in line with templates uploaded in advance on the relevant Twinning and Twinning Light websites, ● a tender guarantee for supplies and works is This type of technical assistance is provided through not included, a mechanism of twinning between administrations ● a tenderer or partner does not meet the criteria and agencies. Twinning projects involve the for candidate eligibility, secondment of EU experts from the public sector, ● the double-envelope system is not observed, known as Resident Twinning Advisers (RTA) to the e.g. the Financial Proposal is not put in a benefi ciary country on specifi c projects related to separate envelope as required for services. the EU acquis. The adviser is made available for a period of at least one year to work on a project in the Common mistakes for technical reasons include: corresponding ministry in the country. In addition to ● The technical offer is not developed to meet the long-term RTA, other EU experts are involved in the criteria for the quality of services. Tenderers the twinning project to provide short-term expertise, often use the same text for various tenders training, translation services and specialised IT or copy the terms of reference, instead of assistance. developing their own project concept based on a high level expert and tailored approach to the Twinning projects are designed to deliver concrete target groups, tangible results in relation to the acquis in the ● The proposed team of key experts does not benefi ciary country. They also help the transfer have the required expertise or experts are not of profi ciency and the creation of long-term available for the time of the planned service relationships between the EU and national experts provision, and offi cials. ● Supply and works offers are not exactly compliant with the technical specification. A further institution building support service was introduced, known as Twinning Light. It has been Be aware that information in the tender dossier established as a fl exible tool for medium-term should be read carefully and the requirements therein assignments, basically up to eight months. The strictly applied in order to prepare a strong tender medium-term experts do not need to be permanently offer. Competition for public procurement is tough, located in the benefi ciary country, unlike the which is why only high-quality offers succeed. Resident Twinning Advisers. The procedures for these assignments are also aimed at addressing 154 HOW TO BENEFIT FROM THE EU ASSISTANCE

speciﬁ c action with regard to the acquis in a more simpliﬁ ed manner. Twinning Light contracts do not exceed budgets over EUR 250.000,00. Twinning and Twinning Light projects implemented in Croatia are shown in Table 42.

Table 42. Twinning and Twinning Light projects implemented in Croatia

Twinning Projects Twinning Light Projects Total Twinning Projects Programme Number Budget (in EUR) Number Budget ( in EUR) Number Budget (in EUR) CARDS 2001 5 5 393 255 - - 5 5 393 255 CARDS 2002 13 10 427 180 - - 13 10 427 180 CARDS 2003 10 7 968 823 4 849 876 14 8 818 699 CARDS 2004 12 12 533 516 3 700 000 15 13 233 516 PHARE 2005 12 12 733 929 7 1 331 821 19 14 065 750 Total 52 49 056 703 14 2 881 697 66 51 938 400

Source: CFCA webpage: http://www.safu.hr/datastore/ﬁ lestore/96/twinning_overview_july08_ENG.xls and own calculations

In Croatia the responsible Contracting Authority for Twinning and Twinning Light contracts is the Central Finance and Contracting Agency (CFCA). It is important to mention that Calls for Twinning proposals are not published at the CFCA website and EuropeAid website but are sent for circulation to the National Twinning Contact Points in EU Members States.

155 European Funds for Croatian Projects

HOW TO MAKE A GENERAL SEARCH FOR CALLS FOR PROPOSALS?

All funding opportunities for Croatia under the IPA components are published on the websites of the Implementing Bodies. Table 43 below lists the websites of the Responsible Bodies for the Operating Structure and the Implementing Bodies (Contracting Authorities) for each IPA component.

Table 43. Responsible and Implementing Bodies for IPA components in Croatia

Responsible Body for the Operating Implementing Body IPA component Structure (Contracting Authority) Component I - Central Ofﬁ ce for Development Strategies Central Finance and Contracting Agency Transition Assistance and and Coordination of EU Funds - http://www. - http://www.safu.hr/ Institutional Building strategija.hr Component II – Ministry of the Regional Development, Forestry Central Finance and Contracting Agency Cross-Border cooperation and Water Management - http://www.mrrsvg.hr/ - http://www.safu.hr/ Component III – Ministry of the Sea, Transport and Infrastructure Priority Axis 1 – Croatian Railways Regional Development - http://www.mmpi.hr Infrastructure - http://www.hznet.hr Priority Axis 2 and Priority Axis 3 - Central a) OP Transport Finance and Contracting Agency - http:// www.safu.hr/ Component III – Ministry of Environment Protection Physical Priority Axis 1 – Environmental Protection Regional Development Planning and Construction - http://www.mzopu. and Energy Efﬁ ciency Fund - http://www. hr/ fzoeu.hr b) OP Environment Protection Priority Axis 2 – Croatian Waters - http:// www.voda.hr Priority Axis 3 - Central Finance and Contracting Agency - http://www.safu.hr/ Component III – Ministry of Economy, Labour and Central Finance and Contracting Agency Regional Development Entrepreneurship - http://www.mingorp.hr/ - http://www.safu.hr/

c) OP Regional Competitiveness Component IV – Ministry of Economy, Labour and Priority Axis 1, Priority Axis 2-Measure Human Resources Development Entrepreneurship - http://www.mingorp.hr/ 2.1 and Priority Axis 4 – Croatian Employment Service - http://www.hzz.hr/ Priority Axis 2-Measure 2.2 and Priority Axis 3 – Agency for Vocational Education and Training - http://www.aso.hr Component V – Directorate for Sustainable Development of Directorate for Market and Structural Rural Development Rural Areas in the Ministry of Agriculture, Support in Agriculture in the Ministry Fisheries and Rural Development - http://www. of Agriculture, Fisheries and Rural mps.hr/ Development - http://www.mps.hr/

Opportunities for European Union grants by policy/area are announced by the Commission Directorate-Generals81. All EU External Aid opportunities are available at Europe Aid - Co-operation Ofﬁ ce web-site82. Low value tenders run by DG Enlargement are available on their web-site83. Other tender opportunities made by the Delegation of the European Commission to Croatia are available at ECD web-site84.

81 http://ec.europa.eu/grants/index_en.htm 82 http://ec.europa.eu/europeaid/cgi/frame12.pl 83 http://ec.europa.eu/enlargement/how-does-it-work/ﬁ nancial-assistance/projects/tenders_en.htm 84 http://www.delhrv.ec.europa.eu/en/content/ListNews/catid/61 156

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● How to identify needs and problems in the community and present them in a project proposal using a logical framework approach and logical framework matrix, ● Defined links between project overall and specific objectives, results and activities, ● Elements of a project proposal presented in a case study on children and young adults without adequate parental care placed in state institutions.

EU FUNDING OPPORTUNITIES

In Croatian national institutions (ministries, offi ces), but in the long run, are benefi ting the participating project cycle management is used to allocate and institutions, such as enhancing opportunities for predict the use of European Union (EU) funds with cooperation and partnerships at European and regards to, among others, the legal framework international scale, creating stronger market adjustments, institutional building and infrastructure visibility and modernisation (especially for Small reconstructions. Parallel to the capacity and and Medium Businesses - SME's), offering chances infrastructure building of a governmental institution, for diversifi cation of a range of activities (for e.g. civil EU funds are also available to other parties and society organisations - CSO's), developing networks partners (private, public institutions and civil society and learning modern European practices. organisations) through grant schemes published by EU funded projects may vary signifi cantly in scope, different Croatian institutions. Each grant scheme scale and topic. To get an idea of EU funded projects has its own application procedure. The project the summary below shows key information regarding proposal or project application usually consists of project objectives, activities, target groups, budgets, a logical framework (Log frame), an application partners and the sources of funded grant contracts. form, and a budget, annexes etc. Although, at the beginning there is a lot of information to absorb, The fi rst example comes from Sisačko-Moslavačka all application procedures for each grant scheme County in the programme area of economic or, more are contained in the project application guidelines, specifi cally, tourism development. The grant contract which is essential reading when applying for EU was awarded during 2006 under the CARDS 2003 funding. grant scheme, National Programme "Sustainable European Union funded projects are not just aimed development of war-affected areas in Croatia", Call at developing and delivering products or services, for Proposals 2003-0101-0109.

The City of Kutina, in partnership with the Municipalities of Lipovljani, Velika Ludina, Popovača, as well as the Tourist Association of Kutina, Kutina Museum, Kutina Open University, CIZA (Slovenian CSO) implemented a project "Activation of local tourist potentials and resources of southern Moslavina and Lonjsko Polje Nature Park through the development of educational and information about the area".

Duration: 16 months from May 2006 and to December 2007

Total project budget: EUR 219,183. of which EUR 175,346 was awarded by the Delegation of the European Commission in Croatia (being 80% of the total eligible action costs).

158 HOW TO DEVELOP A PROJECT PROPOSAL

Target groups: 1. Vintners 2. Local farmers, small and medium entrepreneurs 3. Local service providers 4. Tourist experts 5. Employees of Kutina Tourist ofﬁ ce, Lonjsko Polje Nature Park, and Popovača Tourist ofﬁ ce 6. The City of Kutina, municipalities of Popovača, Lipovljani and Velika Ludina 7. Association of wine-makers, local population and, indirectly, tourists

Overall objective: To activate local tourist potentials and resources of southern Moslavina and Lonjsko Polje Nature Park.

Speciﬁ c objective: The development of tourism in the regions of Moslavina and Lonjsko Polje, through image building and through creation of a destination «brand» and improved accessibility of information and of local tourist destinations.

The Project activities were made up of four components: Component 1: «Branding» of the destination. This included market research, creation of «branding» strategy and of basic identity, as well as development of the «brand» and basic promotional activities.

Component 2: Highlighting tourist potentials, involving the establishment of central groups for educational activities, the preparation, design and printing of educational materials, primary workshops: How to turn your potential into a tourist-oriented outlet, training in basic foreign language communication with tourists, promotional tourist activities based on wine production, historical, natural and cultural attractions of Moslavina including ﬁ eld trips and co-operation between Slovenia and Croatia.

Component 3: Tourist information system ● Creation of an internet site about the area, ● Building of a central tourist information facility in Kutina, including an info-spot for the Lonjsko Polje Nature Park and ancillary info-spots, ● Establishment of communication standards and education of key players in tourism.

Component 4: Signs directing the tourists ● A study on tourist traffic signage, ● Actual positioning of signs.

1591 European Funds for Croatian Projects

The second project example is cross border cooperation between Croatia and Slovenia on environmental protection. The grant contract was awarded during 2006 under the INTERREG III A Neighbourhood Programme Slovenia-Hungary- Croatia 2004-2006 grant scheme. The project was supported by two EU ﬁ nancial instruments: by the European Regional Development Fund (ERDF) in Slovenia and Hungary and by the Community Assistance for Reconstruction, Development and Stabilisation programme (CARDS) in Croatia.

"Učka Nature Park", Lovran, as a leading organisation, in partnership with "Škocjan Caves" Regional Park from Slovenia implemented the project “KAM – Karst Associated Management – The founding of a cross border network for the joint management and protection of the karst area ".

Duration: 2 years

Total project budget: EUR 126,741 of which the amount awarded by the Delegation of the European Commission in Croatia was 89% (EUR 112,799).

Overall objective: The objective is to raise public awareness of the importance of nature protection and improvement of the living standards of the local population.

Speciﬁ c objective: Through the sharing of information, ideas, research and management skills, both Parks would improve the management and protection of the karst area. Some of the speciﬁ c goals refer to improving the quality of the management of the karst areas, in keeping with sustainable development guidelines, raising public awareness of the importance of nature protection and the improvement of the living standards of the local population.

Project activities: The project consists of six parts, each of them referring to a specifi c area: 1. Project management – includes: appointing an expert to co-ordinate the project activities; co-operation with the Škocjan Caves Park in defi ning guidelines, strategies and criteria to implement the rest of the project activities. 2. Methodology, analysis of the area and an assessment of specifi c characteristics – this group of activities gives the most recent picture of the situation in both Parks. In Učka Nature Park scientifi c research will continue, as well as the mapping of the habitats. The purpose of the research is to gain relevant information upon which actions within the management plan can be based. Also, in this part of the project IT equipment and up-to- date maps will be purchased, together with other data necessary for zoning the Park and defi ning management guidelines. Also, an analysis of Park users will be commissioned 3. Documentation and implementation preparation – here activities will provide an insight into current regulations, European directives and international conventions on the protection of the environment. A brochure will be made available to all interested parties. The above information, together with the analysis of Park users will provide enough data to create a draft management plan. A good management plan is the goal both of this part of the project, and of the project as a whole. 4. Improvement of the management of the protected areas – defi nes the framework and the actions regarding the priorities, such as biodiversity protection, education of children and grown-ups, and promotion of local community and locally-produced items. 5. Education – one of the most important activities, which signifi es the education of children and their teachers through «school networks». Schools wishing to join the network, together with schools form Slovenia and Italy, will

160 HOW TO DEVELOP A PROJECT PROPOSAL

be included in the work of parks and will organise the monitoring activities.

6. Communication and public awareness raising – media coverage will be obtained by regular press- conferences, articles in daily papers and TV and radio programmes.

HOW TO DEVELOP YOUR PROJECT

With the examples shown above, we introduce you it's important to have a good understanding of the to the process of developing a project from an idea characteristics of that particular community. Taking to a written project proposal. This process involves the time to get to know your neighbourhood is crucial, two phases, the analysis and the planning phase since anything you do requires that you are familiar which are carried out progressively. This chapter with the people, the issues, the active institutions will take you through this process whereby you (private and public) and its history. For example, will analyse your environment in an organised and you can't set up a drug prevention programme if structured way and that will inform your decision you don't know something about the history of the about your future actions. This process will have community and about its different cultural groups or a documented end result which is the Logical their mentality. And you cannot build a coalition of Framework Matrix (Logframe) that will summarise all groups and individuals involved to help improve the key elements of your project plan. The analysis an entrepreneurial climate unless you previously phase includes recognition of problems and needs have a relationship established with the public and in the community, their structuring in a cause-effect private institutions (companies) that are involved relationship and defi ning the improved situation in in solving this issue. The fi ndings may help you the future with the choice of strategy for the future identify the potential in your community; who project. On the other hand the planning phase uses might be allies in your advocacy and lobbying, you the results of the analysis and transcribes them into might lay the groundwork for recruiting volunteers, an operational plan ready to be developed further in collect information that will help in fund-raising, or the project application form. understand who might oppose your efforts and why. Essentially knowing the community as thoroughly as possible is fundamental to everything that you do. RECOGNISING THE PROBLEMS AND NEEDS IN THE COMMUNITY You may feel that there is no need to analyse the situation in the community since you have been When we think about the area in which we live, a member of it for a long time and you know its we can defi ne it as our local community, a place problems and needs already. This may be true, where people live together in the same or similar however, analysis at this stage will help you have conditions. We often see or hear in the media a wider, more objective look and allow gathering of that we, as a society, or, more specifi cally, as a the new information that can clearly defi ne a new community suffer from problems such as high element of the actual situation. This could be the unemployment, many people on social security or discovery of who has the problem and/or the need, on the poverty line, lack of entrepreneurship, drug who is part of the solution, who does not want this abuse, domestic violence, child abuse or neglect, problem to be solved and what needs to be done, environmental pollution, people abandoning rural or how can you bring about a solution and who can areas (depopulation) and many more. These are help. just some of the problems and needs that individuals or groups of people in the community recognise While you undertake the analysis you will fi nd that and try to act on. Taking a leading role in solving problems can vary from place to place, and from community’s problems is never an easy job. For group to group in the same place. those of us who work in or are part of a community, 161 European Funds for Croatian Projects

Whilst writing the project proposal you will notice collect should be generally representative how key preparatory activities will help formulate a of the whole community. project for EU funding which is in line with national ● Discussions about what some of the challenges strategies (i.e. regional development, health sector, facing the community are and what can be education, civic society development, etc.), and the done about them. If you have enough human relevant sector's research as well as being in line and financial resources you can call a public with the relevant EU policy priorities for Croatia. meeting(s) or do this through local councillors or Community boards. At this stage it is recommended and useful to read and take notes on: In order to show all the steps of a project development, to follow are several examples of projects and also ● Strategy documents at a national, regional a detailed case study on the problem of children and local level (with reference to your area of and young adults, without parental care, placed in interest). state institution homes in the County of Primorsko- ● Current statistical data will give you facts such Goranska. Whilst the problem is very much relevant, as census data, labour surveys, police reports, some data has been adapted and some used and and school and institution information. written in such a way as to serve the purpose of ● Personal interviews, telephone surveys, person the reader's learning process. It is not necessarily to person or mail questionnaires with members drawn from the actual research. of the community or key informants (city mayor, headmaster, priest and leaders of local civil society organisations). The responses you

THE CASE STUDY: Children and young adults, without adequate parental care, placed in state institution homes in Primorsko-Goranska County

Let's start considering an example of an actual community need in the area of social welfare. In Croatia there are around 3000 children without appropriate parental care, 53% of them are placed in children's homes and 47% of them are in foster care. The children in homes have various mental and physical health issues, some 35% of the children even have complicated or serious physical and/or mental health problems or some sort of developmental problems and all of them are acutely traumatised or showing some disorder in their behaviour. In Primorsko Goranska County itself there are three homes for children and young adults who are without adequate parental care. They are in Lovran, Selce and Novi Vinodolski and together they offer residence for around 120 children and young adults.

Their emotional status is often very unstable and affected by the relationship with their biological parents, who are frequently in need of social help themselves, living on the poverty line , having drug and/or problems , or are conﬁ ned to some state institution i.e. mental hospital, prison). This in turn has a long lasting effect on a child’s development, their sense of self worth, socialisation and adaptability to life issues. As a result 10% of the 1500 children and young adults who are living in state institutions stay there for longer then 10 years thereby creating almost uncompensated damage to their emotional and physical development. In Primorsko-Goranska County the length of stay is around 8-10 years.

Fostering is a form of giving temporary home to children and preparing them for possible adoption (possible in the same family) or return to their birth parents and is one of the successful models for taking children out of state institutions. Primorsko-Goranska County is at the bottom of the scale for the number of fostered children. Regions with higher numbers of foster parent/parents are in the vicinities of Zagreb, Podravina, Slavonia and Baranja. According to the research done by Centre for social welfare Rijeka in Primorsko-Goranska County there are only around 20 fostering families and 30 fostered children and young adults in Primorsko-Goranska County. Representatives from three children’s homes in the County believe that this current number of foster caring families is neither nearly enough nor satisfactory. The lack of foster care necessitates that the children stay longer in institutional care and thereby lack the emotional stability, safety and experience of a loving and caring family.

Problems also arise during the early teenage years of fostered children as they become complicated and have behavioural problems within the foster family, school, in contact with peers, friends etc. At this undeniably critical age foster parents experience great difﬁ culty in dealing with teenage problems and as there is a lack of expert help and assistance the fostered children are often returned to the institution thereby damaging their emotional health even further and once again leaving them with the sense of being abandoned. 162 HOW TO DEVELOP A PROJECT PROPOSAL

Research carried out in 2007 by the Croatian Association of Foster Parents across 4 counties, including Primorsko- Goranska County, has shown that there are several reasons for the current poor state of fostering. One of them is certainly a lack of skills and knowledge by parents in the upbringing and parenting of traumatised children and young adults. 80% of 30 families interviewed recognised this problem. Furthermore, foster parents more often than not have the feeling that they are disparaged by employees at the Centres for Social Welfare and are frequently afraid to come to the institution for advice or help with practical queries. The problem is partly due to the fact that the Centres for Social Welfare are overloaded with work and have an acute lack of experienced staff. Another fact is that from the new Law of Foster Care is less than one year old. Therefore there is still a lack of practical experience and certainly a lack of examples of good practice from other countries or other parts of Croatia. Current foster parents have suggested that their everyday life and living with foster children needs constant help especially in situations for which their skills, knowledge and experience is not sufﬁ cient. They would like to avoid situations in which they become helpless and certainly ones that can potentially lead to the displacement of the child/children from them.

Therefore the project should give support to all parties involved (individuals, foster families, fostered children and institutions) in order to establish a functional system of fostering. It should further and primarily improve the quality of life of the children and young adults currently in fostered families in Primorsko-Goranska County, through the synergetic work of children’s homes, Centres for Social Welfare and the Association of Foster Parents.

MEMBERS OF THE COMMUNITY

Each project is implemented in an environment where different individuals and groups play a role. Looking at the individuals, societal groups and institutions it becomes apparent that many of them have different infl uences, power and they are either part of the problem/need or part of the solution. These individuals, groups, institutions and fi rms are known as stakeholders. They may, directly or indirectly, positively or negatively affect or be affected by your project. Some of them will even be the ones whose support you will need occasionally especially if you are trying to change or infl uence national, regional and local government policies. In order to get to know your stakeholders you can make various analyses through which you can become aware among other issues of their experience, resources and interest in potential solutions. There are a variety of tools that can be used to support the analysis, for example: stakeholder analysis matrix /record, SWOT analysis i.e. analysis of strengths, weaknesses, opportunities and threats, various diagrams (Venn diagram and Spider diagram)85.

85A Venn diagram is an illustration of the relationships between and among sets or groups of objects that share something in common. A Spider diagram is a visual tool which has a number of organisational performance aspects that are assessed making visible the gaps between the current and desired performance. 163 European Funds for Croatian Projects

THE CASE STUDY: Children and young adults, without adequate parental care, placed in state institution homes in Primorsko-Goranska County

To return to the case study under analysis, those people, groups and institutions that are already mentioned need to be considered and their perspectives taken into account before developing a detailed project. Those who have power of change and a high interest in participating in the project activities are our key stakeholders (foster care associations, children in institutions, foster parents in Primorsko-Goranska County, the Centre for Social Welfare and children’s homes). It is your responsibility to get those who have high power and low interest involved and to make sure that they are included (i.e. Department for Social Services in Primorsko-Goranska County and City of Rijeka, media-TV, newspapers). And ﬁ nally the ones who have no power in solving the problems or satisfying the needs but have an interest in the problem/need should be kept informed (i.e. Forum on quality foster care of children, UNICEF). In order gain more information and data or more precisely to determine their potential to participate or contribute to the project, their needs and expectations you can make a quick analysis through the stakeholder matrix.

Table 44. Example of stakeholder analysis matrix86

EXPERIENCE, INTERESTS AND HOW CAPACITY AND POSSIBLE ACTIONS TO EXPERTISE STAKEHOLDERS AFFECTED BY THE MOTIVATION TO BRING ADDRESS STAKEHOLDER AND PROBLEM(S) ABOUT CHANGE INTERESTS RESOURCES

CENTRE FOR - Handling foster care - Build capacity of their - Low motivation in - Support capacity SOCIAL WELFARE placement employees working long term building of employees - Servicing social - Employ new people overtime without of Centre for Social welfare cases and - Establish better being adequately paid Welfare implementing all tasks cooperation in the ﬁ eld (risk of burn out and - Promote their work in proposed by the Laws. - Improve image of state frustration) the ﬁ eld of foster care institution - Limited understanding - Identify potential of the skills and partners within civil knowledge support society sector, public needed by foster and private sector families -Willingness and openness to learn new things - Join networks or other working groups in order to improve foster caring in the county

CHILDREN IN - School obligations - Be placed in the foster - Keen interest and high - Increase awareness FOSTER CARE - Assist in "home" families who are motivation to live in a of status of children in activities normal and will handle family foster homes - Many stayed in the all problems - Fear of foster care - Upgrade the system homes for longer then - Long stay in the failing and returning to of social welfare and 5 –8 years institution affects their the institution increase the number - No experience of real emotional growth - Fear of not adapting to of children placed in family life - The longer they stay a new foster family foster homes in the institution the - Work with them on harder they adapt to solving problems living in families and arising in the family life later harder to create with foster parents their own families

MEDIA - Covers stories from - To have good coverage - Large potential for - Provide cases of good everyday life stories in which their inﬂ uencing public practice and publicly - Maintains proﬁ ts from public is interested opinion promote them selling papers - Raise awareness on - Individual reports have - Distribute promotional - Contacts with heads foster care issues interest and knowledge material on foster care of state institutions, to lead mini campaign through their media Ministry for Health and - Associates in the Social Welfare project, covering - Local, regional, progress of the project national coverage and and also announcing distribution activities

FOSTER PARENTS etc. etc. etc. etc.

86 Aid Delivery Methods, Volume 1, Project Cycle Management Guidelines, March 2004, European Commission, EuropeAid 164 Cooperation Ofﬁ ce HOW TO DEVELOP A PROJECT PROPOSAL

As you can see, this list is by no means exhaustive, care families which fulfi l legal requirements for and you can continue to list other individuals, groups foster care and are highly motivated and on the and institutions. The key issue is to interpret the other side Social Welfare Centre employees. fi ndings of the analysis and to ensure that during b) Final benefi ciaries: Those who benefi t from further project development you understand and the project in the longer term at the level of promote stakeholder ownership and their relevant the society, community or sector at large. For participation in the project. example, in this case these are the children in foster care and state institutions, the community Their position and participation in the project can of foster parents at large and the social welfare be as: system in the Primorsko-Goranska County or 1. Benefi ciaries - those who benefi t in whatever Croatia. way from the implementation of a project. 2. Project partners - are those who have rights and Distinction can be made between: responsibilities in implementing the project, who a) Target group(s): The groups, which will be are important stakeholders and who may also be a directly and positively affected by the project, "target group". For example, the already mentioned the persons/institutions that you will with work employees of the Centre for Social Welfare can be directly (direct benefi ciaries). In this case study participants in some educational activities. these could be on the one side potential foster

MAKING THE CONNECTION – LINKING DIFFERENT ASPECTS OF THE SAME PROBLEM How to create a problem tree? Looking objectively at the current negative situation is about taking time and investing certain resources □ Firstly, decide on the more specifi c area or in obtaining as much background information as priorities of problems on which you would like to possible. When you go looking for reasons for, and focus discussion. underlying causes of, signifi cant problems, you are □ Start talking with other stakeholders, without likely to fi nd more than one. Simultaneously there criticism, about the problems in the chosen may be different reasons, in different degrees, specifi c area. List each of the defi ned problems/ infl uencing the problem. It may not be an easy task needs on a separate paper. but you should strive to untangle all the reasons □ Take each problem and ask “WHY?”. By doing so covering the wide ranging aspects of the problem more problems will arise and you will approach whilst at the same time acquainting yourself with the base of the problem tree. These will be your the strategies and legal framework (policies) that causes of the problem. regulate the programme area in which you are □ Identify the effects of the main problem by again working. Usually, within these strategies, you would taking each paper and asking “What happens as fi nd some sort of analysis, often on a national, a result of that?". Write each effect again on a regional and local level, that can give you a required separate card. framework. □ Now you are ready to establish an order of cause and effect relationship. The statements, which You can see that there are various aspects to the are directly causing the problem are at the the problem, whether you look at the legal aspect of bottom of the tree and ones that are direct effects foster care in Croatia, human resources in public are put above. Again sorting the statements is a institutions, the status of children in foster care or the team effort and can be discussed and statements administrative and everyday parenting problems. can be moved around. Always the key issue is that you think through and uncover all aspects of one problem or need and the more you ask "WHY" the more detailed and causative problem you would get. One useful contrivance is the visualisation of the problem in the form of a diagram, called a problem tree, which can easily help analyse and clarify a cause and effect relationship.

165 European Funds for Croatian Projects

THE CASE STUDY: Children and young adults, without adequate parental care, placed in state institution homes in Primorsko-Goranska County ed fi families Restrictive Law on number of fostered foster care, regards children and level of nancial support, max. education of fostering fi gure 3 gure (landscape ) case study fi adequate parent care and interested fostering families Lack of "new" motivated, quali family in the state institution without emotional support and Children are leading life outside Very little Very information in the public possibility to foster children domain regarding and children fostering Lack of skills and Centre for social social welfare staff to social welfare staff lack opportunities welfare employees to learn about their knowledge of Centre for role in the process of supervise fostering families goranska County. goranska County. face numerous problems Foster families do not get cient and appropriate support, fi and young adults without The poor quality of life and suf Figure 27. The problem tree Figure 27. and are often left by themselves to impaired well-being of children adequate parent care placed in the state institutions in Primorsko- work and have little are overloaded with opportunity to listen foster parents problems Centre for social welfare misunderstanding of current foster parents and state institutions full of distrust, disrespect and Relationship and interaction cult to parent fi culty in teenage fi dif Fostered children experiencing more dif years –becoming very Foster parents often return to homes when problems arise emotionally unstable children back emotionally unstable displacement traumatised from troubled teenagers who remain arising problems in dealing with Foster families can not cope with Homes are already Majority of children in

166 EFFECT CAUSES HOW TO DEVELOP A PROJECT PROPOSAL

DEFINING THE SOLUTIONS

The problem has many causes as well as several Your further task is to transform the problem tree major effects. For complex problems, there may into the objective tree. This can be done in the be more than one thing needing resolution. These following steps: are MORE parts of the solution -- or important- ● Reformulate all the negative statements in but-partial solutions. Therefore different types of the problem tree into a desirable positive actions may be necessary to achieve the change. situation, For project thinking it is important to transform the diagnosed situation in the community into a positive ● Afterwards you should check the logic of these change you want to see happen in the future. The linkages. At this stage you should be free to logic is that you need to know where you are going change objectives in any way as necessary. before you plan how to get there.

167 European Funds for Croatian Projects

THE CASE STUDY: Children and young adults, without adequate parental care, placed in state institution homes in Primorsko-Goranska County ed fi families Supportive Law on number of fostered foster care, regards children and level of nancial support, max. education of fostering fi gure 3 gure (landscape ) case study fi adequate parent care and interested fostering families Enough "new" motivated, quali with emotional support and Children lead life outside family Lots of information in the public possibility to foster children domain regarding and children fostering cient and fi Centre for social Increase in skills and social welfare staff to social welfare staff have opportunities welfare employees to learn about their knowledge of Centre for role in the process of supervise fostering families numerous problems appropriate support, and are not left by themselves to face Foster families get suf Figure 28. The objective tree Figure 28. in Primorsko-goranska County. life of children and young adults were placed in the state institution without adequate parent care who Improved well being and quality of Centre for social welfare have time and opportunity to listen foster parent's problems respect and understanding state institutions full of trust, Relationship and interaction of current foster parents and culties in fi arise teenage years with dif successfully dealing Fostered children are Foster parents keep the emotionally unstable children in the family even after problems emotionally unstable displacement Foster families can cope with troubled teenagers who remain arising problems in dealing with Majority of children work intensively on through the trauma of reduction and working

168 EFFECT CAUSES HOW TO DEVELOP A PROJECT PROPOSAL

CHOOSING THE STRATEGY TO ACHIEVE PLANNING YOUR PROJECT BY THE SOLUTIONS DEVELOPING A LOGICAL FRAMEWORK MATRIX Your project is taking shape, in view of the fact that you have defi ned the problem, your stakeholders Now that you have done all the necessary and benefi ciaries, and the objectives you would preparatory and analytical work and chosen the like to achieve in the future. You will also notice that strategy we can summarise the project design in a there are a few aspects to the problem tree. One Logical Framework Matrix (Logframe). The Logical deals with the capacity of the stakeholders, another Framework Matrix is a table of four rows and four is to do with the institutional mechanisms and columns, where all the key parts of the project can the legal environment whilst the third is on public be inserted as a clear set of statements. In order recognition. to fi nish the process you have started, further work needs to be done in answering the following The analytical stage so far done is the most diffi cult questions corresponding to the matrix. and challenging work since it included synthesising large amounts of data and information from the ● What concrete outputs will the project produce? wider environment and making judgments about (or what are the RESULTS to be obtained?) the best implementation strategies to work on. In ● How will we get there? (or what ACTIVITIES practice you will never be able to satisfy all interests, should we undertake?) demands and needs of all stakeholders. Instead, ● How will we know when we have got there? (or in order to make a sound strategic choice for your how to MEASURE OUR ACHIEVEMENTS?) future project you should rely on the answers that ● What will show us we have got there? (or how may infl uence your decision: to prove EVIDENCE that we are successful?) ● What are the potential problems along the way? ● What are the resources that you have to invest (or do we have in mind any ASSUMPTIONS in the implementation of the project? and RISKS?) ● Which strategy will have the most positive impact in addressing the needs of the beneficiaries group? ● What is the most effective approach in order to solve part of the problem? ● What are the opportunities in your area to help you achieve success?

In essence the answers to the above questions are set around criteria such as benefi ts to the benefi ciaries, cost-benefi t analysis, and technical feasibility, reciprocity with other ongoing or planned programmes or projects. Using these criteria will help you choose what should be or can be included in the project and what should not or cannot be included. The selected strategy will be used to help formulate the fi rst column of the Logical Framework, particularly in identifying the project's Overall Objective, Purpose and potential Results.

The analytical phase of the project is concluded with the choice of strategy and the planning phase begins.

169 European Funds for Croatian Projects

Table 45 shows the typical structure of the Logframe matrix87. The numbers in each box shows the progressive steps in ﬁ lling in the Logframe.

Table 45. Typical structure of the Logframe matrix

Project Objectively veriﬁ able Sources and Assumptions Description indicators of achievement means of veriﬁ cation

1 8 9 Overall objective(s) What are the key indicators What are the sources What are the overall broader related to the overall of information for these objectives to which the action objectives? indicators? will contribute?

2 10 11 7 Specifi c objective(s) Which indicators clearly What are the sources of Which factors and conditions What specifi c objective is the show that the objective of the information that exist or can outside the Benefi ciary's action intended to achieve to action has been achieved? be collected? What are the responsibility are necessary contribute to the overall methods required to get this to achieve that objective? objectives? information? (external conditions) Which risks should be taken into consideration?

3 12 13 6 Expected results What are the indicators to What are the sources What external conditions The results are the outputs measure whether and to what of information for these must be met to obtain envisaged to achieve the extent the action achieves indicators? the expected results on speciﬁ c objective. the expected results? schedule? What are the expected results? (enumerate them)

4 14 15 5 Activities Means, resources Budget What pre-conditions are What are the key activities What are the means required What are the sources of required before the action to be carried out and in what to implement these activities, information about action starts? sequence in order to produce e.g. personnel, equipment, progress? What conditions outside the expected results? training, studies, supplies, What are the action costs? the Beneﬁ ciary's direct (group the activities by result) operational facilities, etc. How are they classiﬁ ed? control have to be met for (breakdown in the Budget for the implementation of the the Action) planned activities?

The completion of the Logframe matrix has a sequence that is shown with numbers in each square in the table. You would start with fi lling in the project description top-down, then the assumptions (bottom-up), followed by the objectively verifi able indicators of achievement and fi nally the sources and means of verifi cation (working across).

87 Adapted from Aid Delivery Methods, Volume 1, Project Cycle Management Guidelines, March 2004, European Commission, EuropeAid Cooperation Ofﬁ ce 170 HOW TO DEVELOP A PROJECT PROPOSAL

1st step: Deﬁ ning the project description

All the hard work that we have done in the fi rst phase, when we analysed our surroundings and thought in depth about the problem from different aspects is now paying off. The fi rst column of the Lograme matrix summarises the overall objective, specifi c objective(s), expected results and project activities.

1. The overall objective brings about long term change and is in line with regional and sectoral policies and strategies of the cities/regions/country. The overall objective does not have to be fully achieved by the end of the project.

Examples of overall objectives88: ● To improve the quality of Vocational Education Training (VET) in Sisak-Moslavina County by developing a partnership between regional labour market participants and the network of technical vocational schools; ● Job opportunities for women in the labour market; ● Revival of a joint tourist and cultural heritage on cross border region89

2. The specifi c objective(s) also defi nes the changes for the benefi ciaries which have to be fulfi lled by the end of the project thus contributing to the overall objective.

Examples of speciﬁ c objectives: VOCATIONAL EDUCATION AND TRAINING89 ● To improve the quality of the Vocational Education Training (VET) in Sisak-Moslavina County UNEMPLOYMENT (WOMEN)90 ● Systematic support to the unemployed and long-term unemployed women in their access to the labour market TOURISM AND CULTURE HERITAGE91 ● Launch of a restored and revived technical and cultural heritage and inclusion of the mine in Rude and the technical heritage of Senovo into the tourist offer.; ● Increased public awareness of the maintenance of a cross border tourist and cultural product

3. The results are tangible products/services delivered as a consequence of implementing a set of activities.

Examples of results: VOCATIONAL EDUCATION AND TRAINING ● Designed multi-partner development plan about needs in vocational education and training; ● Increased employability of VET school leavers and unemployed; ● Public informed about the possibilities for education in VET schools; UNEMPLOYMENT (WOMEN) ● The women have gained knowledge and skills in how to provide the services of cleaning, baby-sitting and care of the elderly as well as in the production of candles; ● The women have gained entrepreneurial skills and knowledge needed to participate in the cooperative management; ● The women are psychologically prepared to successfully enter the labour market; ● The idea of social entrepreneurship as a system of employment of vulnerable groups is known in the area of Karlovac County; ● To found a social cooperative as a system of employment of long-term unemployed women;

88 Examples of Logframes used in this Chapter are adjusted to the educational purposes of this book. 89CARDS 2003, National Programme "Upgrading of vocational education and training schools", Call for Proposals 2003-0203-0102. A technical high school, Sisak in partnership with Sisak-Moslavina county, Industrial school Sisak, Croatian Croatian Employment Service, regional ofﬁ ce Kutina and Sisak, Local Economic Development Agency, Croatian Chamber of Economy, Project "Partnership and Knowledge for Employment". Duration: 12 months 90CARDS 2004 Local Partnership for Employment: “The Next Step – social cooperative”, Women’s Group „STEP“, Karlovac 91Phare 2005 SLO-HU-CRO Cross Border Cooperation programme. Project:„Sveta Barbara” ,Town of Samobor 171 European Funds for Croatian Projects

TOURISM AND CULTURE HERITAGE ● Restored mine in Rude and technical heritage of Senovo; ● Established and marked educational paths and geological collections; ● Increased skills and knowledge of tourist guides;

4. The activities are the actions that will be undertaken by the implementer in order to achieve concrete results.

Examples of activities VOCATIONAL EDUCATION AND TRAINING ● Forming a partnership based working group for the design of the development plan; ● Continual adjustment and improval of existing labour market analysis methods; ● Designing of development plan; ● Purchasing equipment needed for education – CNC machines Sinumerik 810/840 D and Fanuc 21; ● Preparations for the delivering of VET education programmes; ● Training VET school teachers.

UNEMPLOYMENT (WOMEN) ● Training in providing the services of cleaning, baby-sitting and care of the elderly as well as in the production of candles, including the development of standards for each service and for production; ● Trainings in entrepreneurial skills - basic and advanced; ● Psychological and emotional empowering of women through counselling; ● Business and marketing plan development for a social cooperative; ● Promotion of social entrepreneurship idea (public campaining).

TOURISM AND CULTURE HERITAGE Implementation of the public tender for: ● Renovation of mine in Rude and technical heritage; ● Preparation of the study for arranging educational path and geological collection; ● Producing promotional material and reports about the project; ● Education of the tourist guides.

172 HOW TO DEVELOP A PROJECT PROPOSAL

If you are in doubt as to whether you have defi ned In order to establish links between the inputs, an objective or what is the activity these questions activities, results and specifi c objectives in the can clarify any doubts. The questions WHAT does project description there is an additional task of my organisation/institution want to achieve with this enumeration that helps us test the logic and links project? WHAT do you want to change?, defi ne between these essential elements of each project the OBJECTIVE. On the other hand the answer proposal. The scheme below shows how it should to the question HOW are we going to achieve the be done. change and reach our objectives?, defi nes your ACTIVITIES.

Figure 29. Enumeration of the project description column

Overall objective

1.Speciﬁ c objective

Results 1.1. Results 1.2. Results 1.3.

Activity 1.1.1./1.2.1 Activity 1.2.2. Activity 1.3.1. Activity 1.1.2. Activity 1.2.3. Activity 1.3.2. Activity 1.1.3. Activity 1.2.4. Activity 1.3.3.

As you can see from the scheme above each of the The link can be made from the top to bottom: activities contributes to the result. Nevertheless one activity can produce more then one result i.e. Activity IF we want to achieve the overall objective, THEN 1.1.1/1.2.1.. You would do the same if you have we must achieve the specifi c objective(s), defi ned two specifi c objectives, whereby you would IF we want to achieve the specifi c objective(s), enumerate both specifi c objectives and proceed THEN we must produce the results, with enumerating results and activities accordingly. IF we want to produce the results, THEN the specifi ed activities must be implemented. When the project description or, as it is known, the intervention logic is read from the bottom up then You will have a sense of clarity and direction after we can say that: drafting your project description. It is advisable to keep the sequential order of tasks in mind and make IF the activities are undertaken THEN results can sure that the activities and results are cohesive and be produced; concrete. IF results are produced, then the specifi c objective(s) will be achieved; and IF the specifi c objective(s) is achieved, THEN this should contribute towards the overall objective.

173 European Funds for Croatian Projects

THE CASE STUDY: Children and young adults, without adequate parental care, placed in state institution homes in Primorsko-Goranska County

Table 46. Project description (ﬁ rst column) of the Log frame matrix

Overall objective Improved well being and quality of life of children and young adults without adequate parent care who were placed in the state institution in Primorsko-Goranska County.

Speciﬁ c objective(s) 1. Increased number of the children and young adults staying with foster parents and prepared for adoption or living with biological parents in Primorsko-Goranska County. 2. Improved system of support to fostering families to sufﬁ cient, timely and appropriate support.

Expected results 1.1./2.1. Increased skills and knowledge of Centre for social welfare supervising to fostering families and children. 1.2. Achieving emotional stability of fostered children and young adults. 2.2. Increased opportunities for cooperation and experience exchange between social welfare centres, local government and CSO's in the area of foster care.

Activities 1.1.1./2.1.1.Education (training) of professionals in centre for social welfare on supervising foster parents. 1.2.1. Counselling for fostered children and young adults. 2.2.1. Establish support (peer) group for, foster parents. 2.2.2. Establish Counselling group for foster parents, Centre for social welfare and Home for children without parental care. 2.2.3. Publishing the practical self help guide "Surviving teenagers!".

2nd step: Deﬁ ning the project assumption

Assumptions are external factors which have In order to address the identifi ed project assumptions the potential to infl uence the success of a project, always give positive indications towards surmounting but lie outside the direct control of the project the eventual risks or at least try to demonstrate implementers. In the Log Frame you need to show the potential to deal with them. The answer to the that you have thought about what these factors question "Will my proposed assumption hold true?" might be. You should only put assumptions which will determine it's destiny. If the answer is “almost are likely to hold true but which nevertheless certainly” then we do not include it in the Log frame, need to be carefully monitored during the project if the answer is "yes most likely/possible" then it implementation. They can describe positive becomes a part of the Log frame and fi nally if its contributions such as: occurrence is very unlikely then we have to ask ourselves if it’s possible to redesign the project. ● the expected introduction of favourable policy A positive answer will lead to you thinking further initiatives or decisions at a national, regional about formulating activities and/or results and a and local level, negative answer signals that you do not have all the ● the additional support and implementation preconditions to start this project. of programmes/projects from local/regional authorities, The question of assumptions is also very much ● the additional support and promotion from related to risk. Let's take an example of a common media, other stakeholder groups,etc. statement that is included in many project defi nitions – that “the resources needed for this project will be The logic works like this: available when needed.” What kind of a statement ● Once the project results and the related is this? Most people would say it is an assumption. assumptions are fulfilled, the specific project After all, when a project starts, you always assume objective/s will be achieved; and you will get the resources you need. However, it ● Once the specific project objective/s and the is not an assumption! Can you imagine starting a related assumptions are fulfilled, a contribution project where the people and equipment were not to the achievement of the overall objectives available and there was a realistic possibility that will be made. they would not be ready when you need them - perhaps because another project needed to fi nish 174 HOW TO DEVELOP A PROJECT PROPOSAL

fi rst. This is defi nitely a risk and not an assumption circumstances of your particular project. There and more importantly it is entirely dependent on is some degree of uncertainty to an assumption. you. You should therefore proactively fundraise and The difference between an assumption and a source fi nancing, securing funds before the start of risk is whether you think there is a high or low the project. likelihood that the event will occur. One way to In any case when you have potential risks you identify important assumptions is to perform a risk should be proactive and do everything within your assessment and look at all the low risk items. Most power and resources to manage or mitigate them. of these low risks are not worth mentioning, but You should think about how they can affect your some will have signifi cant implications if events do project if they occur, what you can do at the point not turn out as you think. These are the ones that you when they arise and who can or should take actions. can document as assumptions. The assumptions This way you can be sure that you’re are prepared are written as positive statements and remember for all eventualities. are external factors that lie outside your or your partner(s) control. The key point is that the same statement might be an assumption or a risk depending on the

THE CASE STUDY: Children and young adults, without adequate parental care, placed in state institution homes in Primorsko-Goranska County

The project assumptions for our case study can be: successfully prepares legal amendments on foster care in Croatia ● Changes in the law on foster care, with ● The Forum’s established network for support regards financial support, maximum number and services for foster caring families is of fostered children and level of education of functioning. fostering families. ● Continuous media coverage and public ● New, motivated, qualified and interested recognition and benevolence. fostering families are fostering children ● Current foster parents obtaining rights ● Continuous use of acquired skills and knowledge (financial) through the Centres for Social of foster care families and professionals in the Welfare social care centre. ● Other children’s homes in the County of ● Centres for Social Welfare receive additional Primorsko-goranska willing to share experience trainings to increase their capacities. and give guidance to foster parents. ● The Forum for quality foster caring of children

Some more examples of the assumptions: VOCATIONAL EDUCATION AND TRAINING ● Ministry of Science, Education and Sport verify the educational programmes ● Local government representatives use and build on the results of the project ● Sufficient quality proposals applied to the call for proposals and public purchase bid. UNEMPLOYMENT (WOMEN) ● Women able to continuously participate in the trainings despite time, childcare and transportation issues.; ● The social cooperative continues to have the support of the local and regional government; ● The community has accepted the social cooperative and its objectives well; ● The interest of the final beneficiaries is constant or is growing; ● The social cooperative is competitive and there is a continuous need regarding market demand. TOURISM AND CULTURE HERITAGE ● Continuous interest of tourists in relation to the information provided; ● Continuous motivation of local population towards the project and tourist guides in the use of acquired knowledge; ● Promotion of the tourist and culture heritage through existing tourist gatherings and conferences and in regional guides.

Once you are satisfi ed that the Objective and Assumption columns are logical and realistic, YOU SHOULD FILL IN THE TWO INTERNAL COLUMNS. These are: objectively verifi able indicators and sources /means of verifi cation through the 3rd and 4th step. 175 European Funds for Croatian Projects

3rd step: Deﬁ ning objectively veriﬁ able indicators of achievements

Setting the indicators can be very challenging. Once Indicators should follow acronym S.M.A.R.T: more the emphasis is on having enough thorough ● Specific - very specific, clear and easy research or background data as to be able to set so that you have a much greater chance of the indicators against them. Indicators answer the accomplishing them. question “How do we know whether or not what we ● Measurable - by setting the measurable planned is happening, or has been achieved?”. The indicators measure whether you are achieving the progress, you will by the end of the project see set results and contributing to the specifi c objectives. the change occur. To determine measurability, As you can see from the Logframe (Figure 4.) the ask questions such as....How much? activity indicators are not included on the level of How many? How will I know when it is the activities but here should be inputs/means. accomplished? ● Achievable - you can achieve all you set out There are two types of indicators you can defi ne: to do when you think and plan, bearing in mind the time, institutional capacities, and any QUANTITATIVE indicators respond to questions restriction of support in the surroundings like: ● how often or ● Realistic - This is not a synonym for "easy." ● how much e.g. number of people involved or Realistic, in this case, means "do-able." One affected; number of visits to schools, hospitals, way to know if your indicator is realistic is to social centres; number of new services determine if you have accomplished anything developed; number of jobs created; types of similar in the past or ask yourself what items produced; length of road reconstructed conditions would have to exist to accomplish in km; average income in currency; growth it again. rates in %, etc. ● Time-bounded - Putting an end point gives you a clear target to work towards. If you don't QUALITATIVE indicators, in general, measure things that cannot be counted and are not tangible. set a time, the commitment is too vague and Such as: it might feel that there's no urgency to start ● what is/are satisfaction, decision-making taking action now. ability, the changes in attitude, etc. It is common practice to think about objectively It is also very important to use a mixture of verifi able indicators along with with sources of quantitative and qualitative indicators so that you verifi cation. can be sure to capture the real progress and impact of the project.

Examples of the objectively VOCATIONAL EDUCATION AND TRAINING veriﬁ able indicators:

Overall • By 2007, to have a 20% increase in the number of long term unemployed persons objective fi nishing vocational schools programme in the County of Sisak-Moslavina • A 10% reduction in the number of persons who have been unemployed for longer then 2 years Specifi c • All relevant actors in the fi elds of VET are actively included and participating in the objective development of technical vocational schools • A defi ned organisational structure of VET schools network • 30% increase in acquiring and updating vocational skills and competences according to EU standards Results • Work group convened for creation of development plan • Network of all VET schools formed • 6 professors trained to work on CNC machines • 4 new modern educative programmes • 50 teachers completed training course • 120 participants of educative programmes • 60 participants in self-employment course • 50% of participants are employed 6 months after the project has fi nished • 10% of participants of self-employment course have registered their own craft or private fi rm

176 HOW TO DEVELOP A PROJECT PROPOSAL

Examples of the objectively UNEMPLOYMENT (WOMEN) veriﬁ able indicators:

Overall • 5% increase in the number of cooperative employees by the end of 2006 objective • 10% increase in the number of long term employed women undertaking training within the cooperative Specifi c • 20% of trained and supported women entering private entrepreneurship objective • Continuing and systematic support given to the social cooperative development, by the policy makers at regional and national level. Results • 4 training programmes designed • 37 women participated in the training • 35 women fi nished trainings and received certifi cation • 10 % of participants of self-employment course registered their own craft or private fi rm • 2 trainings (Basic entrepreneurial knowledge and Advanced entrepreneurial knowledge) designed • 10 women from the target group and 2 members of the cooperative management participated in the training • 10 women from the target group and 2 members of the cooperative management fi nished training and received certifi cation. • 8 sessions conducted with business mentor • 128 hours of psychological group counselling for 40 women • 300 hours of psychological individual counselling for 40 women • subjective increase in self-confi dence, motivation and positive attitude

Examples of the objectively TOURISM AND CULTURE HERITAGE veriﬁ able indicators:

Overall • Increased income from tourism on both sides of the border (Slovenia, Croatia), 2-5% objective annual increase. Speciﬁ c • Tourist visits to restored mine and technical heritage, geological path and geological objective collections on both sides by the end of the project increased by 2-5%; • 15% increase in sale of cultural and tourist products on both sides of the border Results • By the 15th month - 250 m of mine pit restored; by the 9th month 5 locomotives and 10 wagons restored; • By the 17th month – a 1,5km signposted and enhanced educational path; • By the 17th month 30,000 brochures printed (Slo-Cro), 10,000 brochures (Engl- German), website updated, joint visual identity created; • By the 17th month -15 educated and informed tourist guides

4th step: Deﬁ ning sources and means of veriﬁ cation?

The sources of verifi cation, also known as the ● Who or which institution can provide the evidence, describe the sources of information data, a public agency or management team, that should be used to measure the achievement ● Frequency of data collection, e.g. monthly, of indicators. For the Log Frame, you should quarterly, annually. consider: Examples of the sources and means of verifi cation ● The type of data needed, such as survey, are; reports (project reports, offi cial reports of statistics, institutions, etc.), studies, newspaper articles, ● The source of the data – whether secondary minutes of meetings, surveys, evaluations, (collected by someone else) or primary certifi cates, accounts, offi cial statistics, web sites, (collected by your organisation and the other etc. Now that we have all the data and information it project partners), is easy to fi nish the Logical framework.

177 European Funds for Croatian Projects nancial) fi ed and fi The new, motivated, quali The new, interested fostering families to foster children. homes in the County of Other children’s Primorsko-Goranska keep educating and giving guidance to foster parents. Continuous everyday use of acquired skills and knowledge improvement of foster care families and professionals in the Centre. Continuous media coverage and public recognition and benevolence Current foster parents obtaining ( rights through the Centres for Social Welfare functioning network for support A and services for foster caring families established by the Forum to encourage quality foster caring . cation Assumptions fi Registry records of Centre for Social Welfare Reports of implemented supervision, training and evaluation summaries List of participants Press clippings Sources and means of veri Quarterly and annual reports of Centres for Social Welfare Quarterly and annual reports of social welfare homes for adults and elderly persons External evaluation report List of distributed publication List of participants Reports of implemented training, peer, counselling groups Summary of the self evaluation questionnaires Project and evaluation report able indicators of fi Reduce the rate of fostered children and young adults leaving a family from the current 30% to 20-25% (5-10% reduction) in the County of Primorsko-Goranska 10 employees of Centres for Social begin supervision of 10 Welfare families in the last quarter of project implementation further 2 joint actions regarding the A promotion of foster care Objectively veri achievement Reduction by 10-20% each year of the number of children and young adults without adequate parental care in institutions on a county level Increased skills and knowledge in supervising fostering families and children for 50% of employees the 3 Centres Social Welfare 500 publications distributed in the county and through the newly formed network for support and services foster caring families 60% of counselled fostered children and young adults have high scores in attitude towards life test 5 days of training for supervision implemented parental care placed in a state institution homes in Primorsko-Goranska County parental care placed in a state institution homes Primorsko-Goranska Table 47. LOGICAL FRAMEWORK: Improving the life of children and young adults without adequate 47. LOGICAL Table cient, timely and fi young adults staying in foster care, prepared for adoption or living with biological parents in the County of Primorsko-goranska. families to provide suf appropriate help. Centres for Social Welfare to solve and Centres for Social Welfare counselling to fostering families and offer children. children and young adults. social welfare centres, local government and CSO's in the area of foster care. 2. Improved system of support to fostering Project description Project OBJECTIVE OVERALL Improved well being and quality of life children and young adults without adequate parental care who were placed in a state institution the County of Primorsko-Goranska. SPECIFIC OBJECTIVE(S) 1. Increase in the number of children and 1.2. Achieving emotional stability of fostered 1.2. 2.2. Increased opportunities for cooperation and experience exchange between EXPECTED RESULTS 1.1./2.1. Increased skills and knowledge of 178 HOW TO DEVELOP A PROJECT PROPOSAL Implementation of social welfare legislation at county level. are receiving Centres for Social Welfare additional expert training in order to increase their capacities. cation Assumptions fi BUDGET: XX€ (add) BUDGET: Budget breakdown (add) Sources and means of veri able indicators of fi MEANS / SOURCES Professionals (social workers, psychiatrists, supervisors) Volunteers External trainers/consultants Equipment (technical) room Training Other external experts (graphic designers, facilitators etc.) achievement Objectively veri Fostered children and young adults received counselling (minimum 3 times a month) Monthly organised topical support group for foster parents. Quarterly counselling sessions for foster and parents, Centres for Social Welfare homes. children’s in Centres for Social Welfare on in Centres for Social Welfare supervising foster parents. young adults. parents. and parents, Centres for Social Welfare homes. children’s "Surviving teenagers!". 1.2.1. Counselling for fostered children and 2.2.1. Establishing support group for foster 2.2.2. Establishing counselling group for foster 2.2.3. Publishing practical self help guide ACTIVITIES 1.1.1./2.1.1. Education (training) of professionals Project description Project 179 European Funds for Croatian Projects

HOW TO CHECK THE LOGIC OF YOUR ACTIVITY, RESOURCE AND COST PROJECT SCHEDULES

As you have noticed by now there is a logical Once the Logical Framework Matrix is fi nished connection between the cells of the matrix. The logic and the logic is checked you should prepare the of the Logical Framework can be checked twofold, activity, resource and cost schedules. Drafting one is vertical logic and the other is horizontal this information will extend you the possibility to logic. The vertical logic tests the connection of the check the logical sequence, expected duration, fi rst column (project description) and the last column dependencies that may exist between activities (project assumption). You may read it as: If the listed and assign the cost and resources (technical and activities are carried out and the assumptions are human) that need to be undertaken. fulfi lled, results will be achieved. Once the results and the assumptions are fulfi lled, the specifi c Activity planning objective(s) will be achieved. Finally if the specifi c objective(s) with assumptions are achieved the An important issue in planning and drafting a project overall objective will also be achieved. is time planning. Therefore it is essential that in this On the other hand, the horizontal logic tests the phase you create an activity plan. The main activities connections of the project description column, are carried forward from the Log Frame to a detailed the set indicators and its sources and means of Activity Plan. In this way you can maintain a strong verifi cation. link between the original problems and objectives to The key to designing a good project summary the implementation of activities. is to make sure that each level directly links with and achieves the higher level. There will be cases The activity planning will help you to consider when higher objectives are too ambitious and the link between results and specifi c objectives is not ● who will do what? realistic. In this case the links between levels should ● when will this happen? be strengthened through discussion and review ● what types of inputs, besides people, will be and this is how the project design can be gradually needed? improved. There are different types of activity plans. However Sometimes the preparation of the Logframe matrix for the EU funded project application there is a table is not an explicit requirement. However it is still good format which is known as the Activity Plan or Work practice to go through a structured and systematic Plan, shown below. When preparing your Activity analysis of your project idea and to formulate the Plan, you should break the main project activities key elements of the project, just like in the Log further into sub-activities and tasks in order to Frame matrix. make them simple enough to be organised and managed.

Table 48. Activity Plan92

Year 1 1st 6 month period 2nd 6 month period Month 23456789101112Implementing Activity body Preparation of Activity 1

Implementation of Activity 1

Preparation of Activity 2

Implementation of Activity 2

Just like the Log Frame, the Activity Plan should be viewed as a ﬂ exible document in which changes can be made later.

92 The activity plan is taken from the PHARE programme grant scheme. 180 HOW TO DEVELOP A PROJECT PROPOSAL

RESOURCE AND COST PLANNING

Once the Activity Plan is prepared you may start You must prepare the budget very carefully. If you do thinking of the resources necessary to undertake not consider all the things you need to spend money these activities. These resources must be speciﬁ ed on, then you might be unable to carry out some of in the Budget table which is usually a separate the activities, and the project may fail. If you budget annex in the application package. too much for some tasks, the donor may question it and be unwilling to fund the project. You should The Budget table is a summary of the envisaged be very strict when preparing your project’s Budget expenses for all project activities and related because the donor will hold you accountable for management tasks. Although donors require only a spending the money in the way it has been assigned Budget summary, you need to go through a detailed in your project application. planning per activity in order to make proper planning of all necessary resources. Budget preparation is based on allocating resources to agreed cost categories – unit, number of units, unit rate, costs.

Example:Example: How to budgetbudget an activityactivity

IfIf yyourour proprojectject includes the organisationorganisation of,of, forfor example,example, a 3 dayday trainingtraining course for professionalprofessionalss iinn the Centre to learn how to susupervisepervise fostfosterer pparentsarents youyou need to consider the followingfollowing mainmain eexpenses:xpenses: ● Fee foforr thethe trtrainerainer ● SalarySalary / fee for the organisationalorganisational work ● TravelTravel forfor thethe trainertrainer ● PerPer diemdiem forfor thethe trainertrainer whichwhich includesincludes accommodationaccommodation andand subsistencesubsistence costscosts ● RentRent forfor trainintrainingg room and equipmentequipment ● TrainingTraining materials forfor 25 participantsparticipants ● Coffee breaks for 25 participantsparticipants ● Administrative costs – officeoffice expenses.expenses.

Then, yyouou should fi ll in the budbudgetget table for this separate activitactivity.y. RRemember,emember, particularlyparticularly forfor projectsprojects longerlonger than a yyear,ear, that costs mimightght increase due to, forfor example, infl ation. TrTryy to fi nd an averageaverage rate of increase inin orderorder toto reachreach a realisticrealistic costcost estimate.estimate.

181 European Funds for Croatian Projects

Table 49. Budget table93 for activity: 3 day training course - course for professionals in the centre to learn how to supervise foster parents

Unit rate Costs Budget expenses Unit No of units (in EUR) (in EUR) 1. Human resources 1.1. Salaries, fees man/day 15 40 600 coordinator: course organization trainer 1.2. Per diem man/day 3 220 660 trainer training day 4 70 280 1.3. Travel return train ticket 1 50 50 trainer Subtotal: Human resources for this 1590 activity 2. Equipment and supplies - 3. Local project ofﬁ ce - 4. Other costs, services 4.1. Publications 4.2. Studies, research 4.3. Conferences, seminars • Training room Per day 3 150 450 • Coffee breaks (25 participants Per coffee break 6 50 300 x 2 € = 50 € per coffee break) • Training materials Per item 25 5 125 4.4. Audit 4.5. Miscellaneous Subtotal: Other costs and services 765 only for this activity Administrative costs Always a limited % 120 Total costs for this activity 2475

Further on, a separate budget template should be Indirect costs are related to the expenses which completed for other project activities. At the end, support the project activities, e.g. ofﬁ ce expenses: you need to sum up all activities and resources in telephone, electricity, stationery, etc. In the EU project the summary Budget table. guidelines, indirect costs are called administrative costs or general costs. The EU programmes usually As seen from the example, each project budget allow for limited % of indirect costs (most often up to includes two types of costs - direct and indirect costs. 7 %) of the project direct costs (not from the whole Direct costs are those that are directly associated project budget) but this is subject to the Guidelines with the project activities; they are essential to the which should be followed. project's fulﬁ lment.

93 The budget table is taken from the PHARE programme grant scheme. 182 HOW TO DEVELOP A PROJECT PROPOSAL

Good practice is to:

● Make sure your Budget includes only the costs of activities, which are specified in your project proposal. ● Refer to the Activity Plan when working on the Budget in order to reach full compliance between the two documents. ● When you plan the necessary financial resources, don’t forget to budget the working time of the engaged staff members. In one case, this might be one quarter or half of the normal work time of a person. This means that one quarter or half of the salary should be calculated accordingly on the project. In other cases (as in the given example) when a person is committed for a short period, his payment should be calculated against man/days. ● Ensure that the amounts for fee or salary include the costs of social contributions

FINALISING YOUR APPLICATION

The analysis of the problems, needs, objectives and exact number of copies while checking carefully the activity and resource planning is an initial part the order of pages, the availability of people for of the work. However there is still much more to do. signatures and other technical details. In order to apply for a grant you have to prepare a whole project application package. It is better to When preparing the application package read develop smaller, more manageable projects rather through all guidance documents because than large and complex ones. nothing is worse than losing a proposal due to The main and most lengthy document in the package administrative negligence. is the Application form where you are required to describe in detail all project activities. As a result of After submitting your proposal it will take some time, the works already carried out it will not be that diffi cult possibly longer than expected, until you fi nd out if to fi ll in the form since you have already elaborated your project has been selected. But you have to be the project in the Log Frame. Additionally, you have patient and confi dent that you’ve done your best. to consider some further project implementation aspects, e.g. sustainability of results, innovative If your application is rejected, don’t be put off. Try potential, and multiplication of results. At the start to learn important lessons to help you improve your of the Application form you will fi nd the Concept project proposal. Think of making changes and Note which must answer 4 sections in a maximum submit the proposal again because it might win the of 4 pages, requiring to provide a summary of the second time. The most important thing is to always Relevance of the Action, Description of the Action, aim for an excellent proposal! Methodology and Sustainability and Expertise and Operational Capacity. In order to properly fi ll in the Application form always refer to the Guidelines for applicants in the course of work. It is good to carefully read the explanations and instructions which are usually given in each section of the application form and do your best to follow them closely.

Start the preparation in time! Even if your project idea is clear, it will need time to develop. Remember that deadlines always come too fast!

The ﬁ lled application form and its main annexes, the Log Frame, the Activity Plan and the Budget, represent the core part of the application package. However other documents are usually needed afterwards. This is also subject to changes written in the Guidelines for applicants. The ﬁ nal phase requires that all documents are carefully compiled in the application package and that you prepare the 183 European Funds for Croatian Projects

European Funds for Croatian Projects

IN THIS CHAPTER YOU WILL FIND: ● Practical steps in how to start implementing a European funded project ● Practical tools useful in managing a European funded project

WHAT IS PROJECT MANAGEMENT?

The approval of a project proposal usually brings management is your Logframe Matrix (described in inspiration and positive excitement for all those detail in chapter VI) which has the summary of the who have invested time in the preparation of the project. The project manager has a very important proposal. Although the funding of the project is a role in controlling and reviewing the whole project, major stepping stone the real work is just beginning. he/she is focused primarily on monitoring (collecting After budget negotiations as to which costs will be information, data), on implementation of set activities covered (or maybe reduced) and which not, you and on achieving results within the time frame and should embark on the next stage of the project where allocated budget. all that you have planned can commence. It’s very important that you implement all the set activities, achieve all the results and specifi c objective(s) 2nd step: Make administrative planning and within the set time frame of the project. Your work get familiarised with EU common project in managing the project will be concerned with time, implementation rules quality of your activities as well as fi nancial and human resources. The very beginning of the project should be reserved for meeting with your partners and team colleagues Your strengths and opportunities surrounding you (if you have any) and more specifi cally for drawing are positive forces that you should use to effi ciently up contracts that contain all the important rights and implement the project. However you should pay just obligations of all sides. This contract or agreement as much attention and be aware of the recognised is a key document that defi nes all the critical issues weaknesses and threats. Although there is a lot of namely all activities implemented by the person(s) work to be done, it would be prudent if you were to or the organisations/institutions, the deadlines and continuously plan, collect information on how your the payment scheme. In cases when your partner activities are implemented and think of the ways is the one who fi nancially contributes to the project, and means of overcoming the obstacles. the contract should defi ne the schedule and the amount(s) of money transferred to your account.

WHERE SHOULD YOU START WITH THE If you are not sure of or not familiar with EU rules PROJECT IMPLEMENTATION? and regulations it is essential to get acquainted with the EU “Practical Guide to Contract Procedures for 1st step: Read your project proposal again EC External Actions”, also known as the PRAG. This manual is the working document that can carefully help you, as the grant benefi ciary, follow all the set procedures and rules when applying (secondary) It’s useful for a start to reconsider the availability of procurement. During the years of implementation of the initially planned human and fi nancial resources EU funded projects, many useful documents have because the estimated project grant is very often been produced which include frequently asked negotiated and later reduced with project approval. questions and their answers and recently on the This will logically require some reallocation of internet page of the Governmental offi ce for NGO's funding and might even necessitate your thinking there has been several valuable documents in about getting additional resources. Croatian including one titled: Guidelines and advice for project implementers in CARDS 2004 grant In addition you will almost certainly need to re-plan schemes. the time frame of your project as in many cases approval comes later than your planned start day. In addition, all those who implement projects This means that you will also need to reschedule wholly or partially funded by the European Union, activities within the project duration (as defi ned in are required to include in their project plans the project contract). information and communication activities that raise the awareness of the EU support. Readily available The whole application is relevant and should be is the European Commission special manual read again. However, the most useful tool in project entitled “Communication and Visibility Manual for EU External Actions”94. It covers the written 94 http://ec.europa.eu/europeaid/work/visibility/index_en.htm. and visual identity of the EU. It also sets out the 186 HOW TO MANAGE A PROJECT SUCCESSFULLY

requirements and guidelines for written material, Monitoring and evaluation are based on collection, press conferences, signs and all other tools used to analysis and use of information concerning: highlight EU project funding. In addition, the manual offers tools for a communication strategy that will ● The project performance (quality), and the highlight the achievements of EU support. achievement of the envisaged project results, ● The achievements defined financial 3rd step: Gather team and partners and construction (budget spending), and ● The time used to achieve this think about the practical organisation of the project work Many people think of monitoring and evaluation as the same thing but they are different. The main The real project work is always task oriented and difference is what we want to achieve with either is concentrated on allocating tasks and achieving of those and at what stages of the project they are results. It requires that a project manager/coordinator done. compose an effective team with clear division and understanding of the project tasks. Regardless of ● Monitoring is done continuously during the the project size and the respective number of project project implementation to make sure the teams involved, the project manager/coordinator project is on track, usually as the activities should always keep full responsibility for the overall are implemented (i.e. every month, bimonthly project activities and achievement of the project or quarterly). As part of the monitoring one results. should look over the collected data in order to Good internal communication within the project consider any operational changes that need to team and the organisation/institution as a whole be made to the project work plan. can create a climate of openness and a free fl ow of ● Evaluation is an assessment of a degree to communication and information in all directions. In which project results have contributed to the this way you not only avoid and overcome potential meeting of its objectives or rather positive crises but also in the end successfully implement changes that we want to see in regards your project. Good internal as well as external to our problem/need of the specific target communication with partners, media and members group, community or society at large. It is of the community should have: undertaken by external experts sometimes in the middle and certainly at the end of project ● Shared ownership of the project for all implementation. individuals who have been involved in developing the concept and designing the Both monitoring and evaluation are time and project proposal. resources consuming. Therefore they should both ● Joint decision making for achieving the project be planned and as the project starts become part of objectives, activities and results during the operational planning. project implementation stage. ● Project team that shares its learning Apart from monitoring and evaluation there is another experience with the others, i.e. stakeholders, assessment called auditing. This assessment can local community, local authorities, or other be done on a) the legality and regularity of project interested parties. expenditure and income i.e. compliance with laws ● Reflect on these potential challenges and learn and regulations and with applicable contractual rules from them in order to improve the project work and criteria; b) whether project funds have been in the future. used economically and effi ciently i.e. in accordance with sound fi nancial management or rather for the purpose intended. The audit is done externally by KEY ELEMENTS OF PROJECT the Contracting authority. MANAGEMENT - MANAGING QUALITY, TIME AND FINANCES WITHIN THE PROJECT

How to do it?

Monitoring and evaluation are the key management responsibilities. During the implementation of the project it is very important that you monitor the progress of the project and any outside changes that affect it. In this line your project plan should be adjusted where and when necessary. 187 European Funds for Croatian Projects

QUALITY MANAGEMENT (PROJECT PERFORMANCE)

The essential tool for monitoring performance quality within the project is the Logical framework (see Chapter VI). The data in the ﬁ rst and second column or rather project description and objectively veriﬁ able indicators are your basic data for developing a monitoring plan for your project. There are various monitoring plan tables developed for use in project management. One of the examples is shown below:

Table 50. Quarterly monitoring record of the level of project results and activities

Monitoring area Planned Actual Variance

- Project results (in line with Describe what is planned Write objective assessment If the planned and actual the Log frame and the to be achieved during this based on comparison match, you project plan is on project plan). quarter from the list of between planned targets and target. - Activities (in line with the monitoring area. the actual achievements at If there is a variance, either Log frame and the project the end of the quarter. positive or negative, brieﬂ y plan). explain why and what you are going to do about it.

The presented template is one of the possible tools to monitor your project at a technical level. Other monitoring tools can be applied as well and it is worth using the indicators to compare what is planned and what is actually achieved within the given period. To show this we can follow the case study from the Chapter VI, where the problem in the community was "Children and young adults, without adequate parental care, placed in state homes in the County of Primorsko-Goranska ". We can take some activities and think through the monitoring plan:

Table 51. Monitoring Plan table on the level of the project activities and indicators

Person(s) Type of Method of Dynamics Project activity Indicator responsible for information collection (time frame) collecting

Education 50% of employees - Assessment - Participants Project manager After each training (training) of of the 3 Centres of skills and evaluation and trainer/ and at the end of Centres for for Social Welfare knowledge of questionnaire consultant the project. Social Welfare increased skills the participants (evaluation professionals on and knowledge before and after summary) supervising foster of supervising the training - Participants list parents. fostering families - Number - Training and children. of training implementation sessions and report Implemented 5 topics covered days of training for - Number of supervision. participants

Establish support Once a month - Number of peer - Notes/minutes Facilitator/ project Quarterly and at (peer) group for, organised topical groups held from facilitator assistant the end of the foster parents. support group for - topics discussed (leader) of the project. foster parents. - number of foster peer group parents - List of foster - Participants parents coming assessment to peer support of their status groups before and after - Questionnaire the received before/ after support

This monitoring table is a ﬂ exible tool which you can easily adjust for your own project speciﬁ cs. For example if we put in column for overall objectives, impact and indicators, then we already have a new tool which is a MONITORING AND EVALUATION PLAN TABLE.

188 HOW TO MANAGE A PROJECT SUCCESSFULLY

Table 52. Monitoring and Evaluation Plan Table95

Overall Responsible Frequency of Impact Indicators Method objective person data collection

The positive The overall and An indicator is a The method/ Who is going to be How often will change long term effect quantitative or technique by responsible for the you (the persons that project/ of an intervention. qualitative variable which the data will collection of data? implementing the programme wants Impact is the that provides a be collected. project) collect to achieve. longer term or simple and reliable the needed ultimate result basis for assessing information/data. attributable to achievement, a development change or intervention. performance.

Speciﬁ c Responsible Frequency of Outcome Indicators Method objective person data collection

The speciﬁ c Actual or An indicator is a The method/ Who is going to be How often will and measurable intended change quantitative or technique by responsible for the you (the persons change that the in development qualitative variable which the data will collection of data? implementing the project should conditions. It that provides a be collected. project) collect achieve within the describes the simple and reliable the needed duration of the change that has basis for assessing information/data. project/ come about upon achievement, programme. the completion of change or results. performance.

Responsible Frequency of Activities Results Indicators Method person data collection

Actions in the Tangible products An indicator is a The method/ Who is going to be How often will context of (including quantitative or technique by responsible for the you (the persons programming services) of a qualitative variable which the data will collection of data? implementing the which are both programme or that provides a be collected. project) collect necessary and project that is simple and reliable the needed suffi cient and necessary to basis for assessing information/data. through which achieve the achievement, inputs (fi nancial, objectives of a change or human, technical programme or performance. and material project. Results resources) are relate to the mobilized to completion of produce specifi c activities and results or are the type of contribute to the results over which outcome. managers have a high degree of infl uence.

95 Charity evaluation services, London, UK, Advanced monitoring and evaluation training materials, November 2007. 189 European Funds for Croatian Projects

EVALUATION

Evaluation can be distinguished from monitoring mainly by its scope and those involved. In terms of scope, it is broader and considers whether or not the right objectives and strategies were chosen. Evaluation also involves assessment of the project management aspects and recommendations for improvement in the future.

Evaluation Criteria used by the European Commission96

The evaluation criteria are very much in close link Impact - The impact assessment focuses on the with the Logframe. The key criteria are: relevance, effect of the project on your wider surroundings effi ciency, effectiveness, impact and sustainability. (society), societal policies and the project overall objective. Due to its wider more complex objectives, Relevance - The project should be checked with the impact assessment is something that is best regards to the appropriateness of the project done with a time distance (i.e. several years after objectives and the defi ned problem and needs in the project has been completed). the community as well as the wider societal context. It should include an assessment of the quality of the Sustainability - This assessment should check project preparation and design. the likelihood of the continuation of all the benefi ts accomplished in the community once funding has Effi ciency - Further, the evaluation should answer ended. It is of particular importance to know how the question; how well have you used all the much the local community has gained ownership of resources, yours and your partner(s), if you had the project results and how much these benefi ts will one, to implement activities and achieve results. be sustained from the socio-cultural, environmental, political and fi nancial and technology and Effectiveness - One of the key questions is management aspects. whether you have results and more importantly how much have your project results contributed to the There is as common link among Logframe objectives achievement of specifi c objectives. Further you can and monitoring, evaluation and audit97. look at how much the assumptions and the risks have affected the achievements of project results.

Figure 30. Links between Logframe objectives and monitoring, evaluation and audit

Type of assessment Logframe hierarchy

Evaluation Overall objective

Evaluation Speciﬁ c objective(s)

Monitoring and Audit Expected results

Monitoring and Audit Activities

96 Taken from: Aid Delivery Methods, Volume 1, Project Cycle Management Guidelines, March 2004, European Commission, EuropeAid Co- operation Ofﬁ ce 97 Taken from: Aid Delivery Methods, Volume 1, Project Cycle Management Guidelines, March 2004, European Commission, EuropeAid Co- operation Ofﬁ ce 190 HOW TO MANAGE A PROJECT SUCCESSFULLY

Key principles of good monitoring and evaluation practice:

● When designing or managing a monitoring process it is very important to consider who needs what kind of information and you should pay particular importance to keeping funders, policy makers and other stakeholder in the community informed (see Chapter VI). ● Be careful not to duplicate work and exhaust yourself and others involved in the project by collecting everything and anything. Bear in mind how much time it takes to collect the information and who else in the local community is already collecting this information. ● Therefore collect only the minimum needed to inform your decision making on implementation of the project. ● If possible use one method in order to collect multiple relevant information. ● Validate your collected information/data against your developed monitoring and evaluation plan.

MANAGING TIME

An important aspect of time management is tasks that you need to carry out to implement planned pre-planning. Occasionally, successful time activities. The Action Plan is like the monitoring plan, management involves putting in more time at the a fl exible tool which can contain basic information outset in order to be more effective later. There are such as WHAT to do?, WHO? and by WHEN?. some basic principles around time management. Or you can use it to include more information on Time is defi nitely limited and when wasted it expected results and necessary resources. It’s wise refl ects badly on project implementation. Therefore, to include even the smallest tasks because they, use readily available tools. too, are "time consumers". Finally it is useful in the avoidance of any misunderstandings. For example an Action Plan is a simple list of all the

Table 53. Action Plan

Person(s) Necessary Type of activity The deadline responsible resources

When you have a good monthly or quarterly Action Plan, all you need then is to allocate time during the week for operational planning to allocate and revise tasks. The exhaustive list in the Action Plan can be further prioritised with the priority table that helps you focus and spend more time on the things that really matter to you, that are important and urgent.

Table 54. Priority Table

Very important/Very urgent Very important/Not urgent - the tasks that need to be done right away- - the tasks for which you need to set deadlines and plan them into your everyday work-

Not important/Very urgent Not important/Not urgent -the task that can be done by somebody else but it is -the tasks for which you need to set aside time, for example your responsibility to delegate it- few hours during the week or you can also delegate this work. If you can ﬁ nd time then these tasks are "sitting" on the list to be done…-

It is good practice to spend time planning your time that can help increase your productivity and balance your important long-term projects with your more urgent tasks. Using time management tools can help you keep track of everything that you need to do, they can help you organise and prioritise your work, and develop sound plans to complete it. 191 European Funds for Croatian Projects

FINANCE MANAGEMENT

Financial management issues represent a core ● Certain types of costs need prior approval from part of the project management work. As we have the Contracting authority (i.e. contingency already mentioned in many cases the approved total costs). budget for a project might be lower than originally ● Same project expenses can neither be covered planned. This usually means that you will have to by other budget items within the same project make a new breakdown of costs and sometimes budget, nor from different EU project grants. a modifi cation of the grant distribution between partners. It is very important that project partners Next, an important fi nancial management task are involved in this process in order to ensure that refers to the establishment of an effi cient they are not expecting the initial fi nancial plan. The fi nancial monitoring system. It should be based revised budget is an annex to the contract and on the revised budget and should closely follow generally allows for limited fl exibility in spending. the format of the required project fi nancial reports. Again, there are available tools with which you can The EU fi nancial management's rules are very monitor your project budget. The experience of strict and clearly written. Whoever is the fi nancial various project implementers differs but it is good manager has the core task of controlling the practice to monitor at least once a month, best done eligibility of expenditures. In this respect it is good at the beginning of the month by making a list of to know that: spending for the previous months (in order of the ● The costs have to be actual and eligible. budget), and comparing it with the overall budget Costs are eligible if they are directly related before getting the balance. To help you with this, to the implementation of project activities. here is an example of project expenditures record: They should be made within the formal project duration and in accordance with the rules set out in the contract or in the supportive documentation. Table 55. Example of the project expenditures record table

1. Budget 2. Budget 3. Actual spending by project months 4. Total 5. Balance 6. Comments item (available spent funds from I II III etc. EU)

Explanation of the table: positive or negative. Therefore it is important to keep the track of your expenditures. As a general 1. In the Budget item column you would have a list rule the EU programmes allow for a certain of eligible cost categories such as staff costs, travel percentage variation for Budget items, but any costs, sub-contracting costs, administrative costs amount that is spent outside the allowed mount will etc., according to the approved project budget.. not be accepted as justiﬁ able project expenditure. 2. Next to each Budget item you would have For this percentage you should refer to the project available EU funding Budget for each cost category. Guidelines. In the event that your initial budget was reduced with 6. The Comments column is useful as it may give you the project approval, you have to prepare a revised a reminder of certain issues that may be valuable in project budget in accordance with the approved the preparation of the project ﬁ nancial reports which funding. very often require explanation on expenditures and 3. The Actual spending are all the incurred costs. related variations. 4. The Total spent gives an overview of rate of The template shown is just one example of budget expenditures. monitoring. However you may use different 5. The Balance is the difference between the Budget templates as long as they give you correct and and the Actual spending. The variance might be relevant information. 192 HOW TO MANAGE A PROJECT SUCCESSFULLY

REPORTING - NARRATIVE AND FINANCIAL Final report

Narrative Reporting The purpose of the Final Report is to give a full picture of what has been done under the project and Reporting on the progress and execution of the to allow overall project evaluation. All project work project is a very important project management must therefore be completed before the report is task. Depending on the type of the EU programme submitted. The Final Report is intended to provide a different types of project reports might be required. detailed description, over the whole duration, of the The preparation of technical and fi nancial reports project and its results. It also requires considering of projects receiving grant aid is compulsory at the project’s future sustainability and impact. different stages of the project’s life. Up until now the practice has been that for small projects (up to By choosing different means of representation 12 months) only the interim and the fi nal report you can give the document a visual balance, for following the project’s completion are required. In example by breaking up long sections of text with the case of larger projects, besides the fi nal report tables or fi gures. Tables and graphs are an excellent you are required to submit progress reports, means of giving an overview of numerical results or such as quarterly and interim reports. The style providing information in a form which lends itself to of reporting, its format and deadlines are explicitly comparison. You should ensure that each table has mentioned in the project contract and annexed to a number and a title, so that it can be referenced it. from the text.

Financial report When preparing reports bear in mind the following good practices: Financial reporting is possible and ultimately successful if you have continuously kept track of ● Focus on progress towards achieving results spending or rather if you have managed to establish (results and specific objectives in the Log frame) sound fi nancial monitoring. The Financial Report, and not just the list of activities implemented, along with the narrative report are part of your signed ● Refer and compare your progress against your Contract with the Contracting authority and can be activity plan, usually found in the electronic version on the internet ● If implementation is not following the activity pages. You should assiduously follow the format plan, it is necessary to explain deviations that is proposed and complete it in accordance with and highlight your activities to remedy such the guidelines. Financial reporting has been, up to situations, now, submitted with a narrative for the interim and ● Be coherent and comprehensible, there’s no the fi nal reports. Upon the acceptance of both the need to use complex and long sentences to narrative and fi nancial report you would be able to explain your progress. put forward a request for payment whether this be an interim payment or the fi nal payment.

Progress report The Progress Report focuses on progress made towards producing results and achieving the project objectives. The report guidelines require a brief explanation on deviations from the initial project plan and a description of project progress (against what is planned), constraints encountered and any signiﬁ cant measures that are taken or are required. Progress Reports provide a record of what has been achieved during the reporting period in order to facilitate future reviews and evaluations. Thus you can look at them not just as a formal requirement but as a good opportunity for the manager/coordinator to get an overview of what is happening in the project so as to make sound management interventions.

It may be the case that mid-term payments to project beneﬁ ciaries depend on the acceptance or approval of the required Progress Reports.

193 European Funds for Croatian Projects

FINAL REMARKS

Dear Reader,

By the end of this book, you have become well The other important and key issue is that through aware that fundraising and ﬁ nancing from EU funds the project actions you have planned and fulﬁ lled, is done through grants and public contracts. An you effect a change in the community. The application for funding is a set form which takes time implementation of projects usually brings local, and needs a serious approach through the process regional and even national acknowledgment and of planning, preparing, amassing and writing. credibility.

The whole process may be challenging, especially Applying for EU funds is just like learning anything for novices, but as you work through it all, you and new in life, at fi rst it is daunting, then you slowly start your organisation, institution or company will gain to understand things, put the pieces of the puzzle invaluable experience, skills and knowledge. The together, through which you gain confi dence. Never process of putting your ideas through the structured be discouraged, the more you write projects, the process and formulating arguments for your project better you get at it, the more projects you will get to be fi nanced will push you further in personal funded! and organisational development and will certainly contribute to expanding and diversifying the existing sources of funding and fi nancing.

Some more tips to share:

□ Know your place in the European funds management schemes. Make the best out of your resources and possibilities; □ Invest in capacity development. And the sooner, the better. The money from European funds is worth the effort; □ Inform yourself well, in order to be able to make competent and rational choices. Do make a difference between assumptions and facts, between expectations and decisions made, between general recommendations and obligatory requirements; □ Educate practical skills and not general knowledge. General knowledge only creates general results. Educate through practical assignments and not through lectures; □ Find your partners, use their resources well, but don’t forget to give your stake too. □ Do not overdo on planning; start implementing; □ Adapt, do not copy. ‘Best practices’ can be used only if they work on local grounds; □ Always bear in mind the reason behind the European funds – they are there not simply to be absorbed but also to make a difference and to contribute to human development.

194

FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

ANNEX 1 - ABOUT CODEF

The Central Offi ce for Development Strategy and Coordination of EU Funds (CODEF) is in charge of the coordination of EU funds for Croatia, and the creation of a national development strategy. It is the lead institution in the Republic of Croatia for EU funds programming and monitoring, and a key interface between the Croatian Government and the European Commission, alongside the National Authorizing Offi cer and National Fund for Financial Management. While the Ministry of Finance is tasked with ensuring that EU funds are spent correctly and in a fi nancially sound manner, CODEF’s broader mandate is to ensure EU funds are spent effectively; that Croatia has the programmes and projects in place to ensure absorption, and makes best use of EU and national resources. The state secretary of CODEF holds the position of National Coordinator for EU Assistance and Cooperation Programmes, National ISPA Coordinator and National IPA Coordinator. With the support of CODEF staff, the state secretary ensures partnership with the European Commission and a close link between the general accession process and the use of pre-accession assistance.

More speciﬁ cally, CODEF is responsible for the following functions related to EU assistance:

● Programming coordination & consistency: □ preparing annual action plans under Component I of the IPA programme, □ preparing the Strategic Coherence Framework (SCF) and ensuring that the four Operational Programmes (OPs) under the SCF are coherent and consistent with Community and national policies related to IPA Components III and IV, and, □ participating in the preparation of multi-annual programming documents for Components II and V.

● Quality assurance on major project applications: □ performing a quality check on major project application forms under the Component III and IV, before they are submitted to the European Commission for approval;

● Monitoring: □ initiating the preparation of Monitoring Reports (MRs) - starting the monitoring cycle; □ chairing and organising sectoral monitoring sub-committees and the Joint Monitoring Committee for the CARDS and Phare programmes; □ participating in IPA sectoral monitoring committees for all its components; □ chairing and organising the IPA Monitoring Committee; □ participating in the establishment of the management information system (MIS), □ preparing annual and ﬁ nal monitoring reports on EU assistance for the Commission services.

● Negotiations: □ coordinating negotiations under Chapter 22: Regional policy and coordination of Structural Instruments.

● Information and publicity on EU funds: □ publicising and providing information on EU funds generally for the public and potential beneﬁ ciaries, □ preparing a communication strategy and setting the overall framework for sectoral communication action plans for EU assistance, □ hosting the www.strategija.hr website.

● Education: □ participating in the development of education and training programmes for civil servants, covering EU assistance themes, □ delivery of training for different modules related to pre-accession programmes and Structural Instruments.

● Horizontal coordination:

□ participating in regular coordination meetings with state administration bodies and ensuring that all requirements for reporting and information ﬂ ows, which fall under CODEF’s responsibility, are met. 197 European Funds for Croatian Projects

ANNEX 2 - LIST OF TABLES, FIGURES AND MAPS

Chapter I - Financial Cooperation between European Union and Croatia – OBNOVA, CARDS, PHARE, ISPA and SAPARD

Table 1. EU assistance provided to Croatia, 1991 – 2000 (EUR million) 13 Table 2. EU assistance provided through CARDS National Programme in Croatia, 2001 – 2004 (EUR million) 15 Table 3. EU assistance provided through CARDS Regional Programmes to Croatia, Albania, Bosnia and Herzegovina, 16 Montenegro, FYROM and Serbia for the period 2001-2006 in EUR million Table 4. EU assistance to Croatia through Cards, Phare, ISPA and SAPARD, 2001 – 2006 (EUR million) 19 Table 5. Relevant documents for EU pre-accession programmes 27 Table 6. List of projects under the CARDS National Programme – 2001 28 Table 7. List of projects under the CARDS National Programme – 2002 29 Table 8. List of projects under the CARDS National Programme – 2003 30 Table 9. List of projects under the CARDS National Programme – 2004 31 Table 10. List of projects under the CARDS Regional Programme – 2001 32 Table 11. List of projects under the CARDS Regional Programme – 2002 32 Table 12. List of projects under the CARDS Regional Programme – 2003 33 Table 13. List of projects under the CARDS Regional Programme – 2004 33 Table 14. List of projects under the CARDS Regional Programme – 2005 34 Table 15. List of projects under the CARDS Regional Programme – 2006 34 Table 16. List of projects under the PHARE National Programme – 2005 35 Table 17. List of projects under the PHARE National Programme – 2006 37

Chapter II - IPA – the new pre-accession ﬁ nancial instrument

Figure 1. The evolution of ﬁ nancial assistance provided to Croatia 40 Figure 2. A 3-level implementation framework of IPA 41 Figure 3. Institutional structure for management of IPA in Croatia 43 Figure 4. Links between various Pre-accession programmes and Structural instruments 45 Map 1. Eligible area for Hungary – Croatia CBC Operational Programme, 2007 – 2013 48 Table 18. Priorities and measures of Hungary – Croatia CBC Operational Programme, 2007 – 2013 48 Map 2. Eligible area for Slovenia – Croatia CBC Operational Programme, 2007 – 2013 49 Figure 5. Priorities and measures of Slovenia – Croatia CBC Operational Programme, 2007 – 2013 50 Map 3. Eligible area for Adriatic CBC Operational Programme, 2007 – 2013 51 Table 19. The eligible regions for the ﬁ nancial support under the Adriatic CBC Operational Programme, 2007 – 2013 51 Table 20. Priorities and measures of Adriatic CBC Operational Programme, 2007 - 2013 52 Map 4. Eligible area for Croatia – Bosnia and Herzegovina CBC Operational Programme, 2007 – 2013 53 Table 21. Priorities and measures of Croatia – Bosnia and Herzegovina CBC Operational Programme, 2007 – 2013 54 Map 5. Eligible area for Croatia – Montenegro CBC Operational Programme, 2007 – 2013 55 Table 22. The eligible regions under the Croatia – Montenegro CBC Operational Programme, 2007 – 2013 55 Table 23. Priorities and measures of Croatia – Montenegro CBC Operational Programme, 2007 – 2013 56 Map 6. Eligible area for Croatia – Serbia CBC Operational Programme, 2007 – 2013 57 Table 24. The eligible regions under the Croatia – Serbia CBC Operational Programme, 2007 – 2013 57 Table 25. Priorities and measures of Croatia – Serbia CBC Operational Programme, 2007 – 2013 58 Map 7. Eligible area for South East Europe Operational Programme, 2007 – 2013 59 Table 26. The eligible regions under the South East Europe Operational Programme, 2007 – 2013 60 Figure 6. Priorities axis and areas of interventions of South East Europe Operational Programme, 2007 – 2013 61 Map 8 . Eligible area for Mediterranean Transnational Cooperation Operational Programme, 2007 – 2013 62 Figure 7. Priorities and measures of the Mediterranean Trans-national Cooperation Operational Programme, 2007 – 2013 63 Table 27. Priorities and measures of Operational Programme “Regional Competitiveness”, 2007 – 2009 64 Table 28. Enterprise categories 65 Table 29. Priorities and measures of Operational Programme “Transport”, 2007 – 2009 66 Table 30. List of future project under Operational Programme “Transport”, 2007 – 2009 67 Figure 8. Priorities and measures of Operational Programme “Environment”, 2007 – 2009 68 Table 31. List of projects under Priority axis 1 for Operational Programme “Environment”, 2007 – 2009 69 Table 32. List of projects under Priority axis 2 for Operational Programme “Environment”, 2007 – 2009 69 Figure 9. Overview of Priorities and Measures under Operational Programme “Human Resources Development”, 2007 – 2009 70 Table 33. Priorities and Measures of Agriculture and Rural Development Plan, 2007 – 2013 73 Table 34. Multi-Annual Indicative Financial Framework for IPA for Croatia, 2010 – 2012 (EUR million) 75

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Chapter III - Community programmes in Croatia at a glance

Figure 10. Main differences between Pre-accession and Community Programmes 79 Figure 11. Description of participation process in Community Programmes in Croatia 80 Table 35. Community Programmes in Croatia at a glance 82 - 83 Figure 12. Thematic areas of FP7- Cooperation 85 Table 36. National Contact Points per FP7 priorities 86

Chapter IV - EU funding opportunities for Croatia after accession

Figure 13. Hierarchy of EU policy documents and strategic documents at national level 114 Figure 14. EU Cohesion policy objectives for the period 2007 - 2013 116 Map 9. Map of European regions eligible for funding under the three policy objectives 117 Figure 15. EU Objectives and fi nancial instruments for the period 2007 - 2013 118 Figure 16. Strategic approach in Structural funds investments 119 Figure 17. Programming documents and institutional arrangements for management of Structural Instruments in 121 Bulgaria Figure 18. Division of structural funding per objectives 122 Figure 19. Regulatory framework for 2007 – 2013 period 123 Figure 20. N+3 rule 124 Table 37. List of benefi ciaries of Phare 2005 Business related infrastructure – Grant scheme 126 Figure 21. Schematic presentation of CAP’s two pillars and their priority actions 131 Figure 22. Schematic presentation of priority actions of CAP 133 Figure 23. Structure of Programming documents under Structural instruments in Bulgaria and structure of 138 Programming documents under IPA in Croatia Map 10. Classifi cation of statistical territorial units in Croatia 139 Table 38. Classifi cation of statistical territorial units in Croatia 140

Chapter V - How to beneﬁ t from the EU assistance

Table 39. Relevant programming documents per IPA components 143 Figure 24. Milestones for preparation and implementation of Operational programmes in Croatia 144 Figure 25. From the EU ﬁ nancial instrument to the single contract 145 Table 40. Type of calls per IPA components 145 Figure 26. Indicative time schedule for grants scheme implementation 148 Table 41. Threshold for public procurement contracts as per Practical Guide for contract procedures 150 Table 42. Twinning and twinning light projects implemented in Croatia 155 Table 43. Responsible and Implementing bodies for IPA components in Croatia 156

Chapter VI - How to develop a project proposal

Table 44. Example of stakeholder analysis matrix 164 Figure 27. The problem three 166 Figure 28. The objective three 168 Table 45. Typical structure of the Logframe matrix 170 Figure 29. Enumeration of the project description column 173 Table 46. Project description (ﬁ rst column) of the Log frame matrix 174 Table 47. LOGICAL FRAMEWORK: Improving the life of children and young adults without adequate parental care 178-179 placed in a state institution homes in Primorsko-goranska County Table 48. Activity Plan 180 Table 49. Budget table for activity: 3 day training course for professionals in the centre to learn how to supervise 182 foster parents

Chapter VII - How to manage a project successfully

Table 50. Quarterly monitoring record of the level of project results and activities 188 Table 51. Monitoring plan table on the level of the project activities and indicators 188 Table 52. Monitoring and evaluation plan table 189 Figure 30. Links between Logframe objectives and monitoring, evaluation and audit 190 Table 53. Action Plan 191 Table 54. Priority Table 191 Table 55. Example of the project expenditures record table 192 199 European Funds for Croatian Projects

ANNEX 3 - LIST OF ABBREVIATIONS

AF Application Form AP Accession Period CAO Competent Accrediting Offi cer CAP Communication Action Plan CARDS Community Assistance for Reconstruction, Development and Stabilization CBA Cost Benefi t Analysis CCI Common Code for Identifi cation CEC Commission of the European Communities CFCA Central Finance and Contracting Agency CODEF Central Offi ce for Development Strategy and Coordination of EU Funds CROMAC Croatian mine action centre CSG Community Strategic Guidelines on Cohesion COM Communication [of the European Commission] DG REGIO Directorate General for Regional Policy EC (in EU regulations): European Community EC (elsewhere): Commission of the European Communities ECA European Court of Auditors EEC European Economic Community EIA Environmental Impact Assessment EIB European Investment Bank EPOP Environmental Protection Operational Programme EPRC European Policies Research Centre ESC Economic and Social Cohesion EU European Union Euratom European Atomic Energy Community FAQ Frequently Asked Questions FIDIC Fédération Internationale des Ingénieurs-Conseils HoD Head of Department HoS Head of Operating Structure HRD Human Resources Development HRDOP HRD Operational Programme ICG Inter-Ministerial Co-ordination Group IPA Instrument for Pre-Accession Assistance IPAMC Instrument for Pre-Accession Assistance Monitoring Committee IR Implementing Regulation ISPA Instrument for Structural Policy for Pre-accession IWG Inter-Ministerial Working Group JAP Joint Assessment Paper of Employment Priorities JIM Joint Inclusion Memorandum MEM Monitoring and Evaluation Methodologies MIFF Multi-annual Indicative Financial Framework MIPD Multi-annual Indicative Planning Document MIS Management Information System NAO National Authorizing Offi cer NAPE National Action Plan for Employment

200 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

NF National Fund of the Ministry of Finance NIPAC National IPA Coordinator NUTS Nomenclature of Territorial Units for Statistics OG Ofﬁ cial Gazette OJ Ofﬁ cial Journal [of the European Union] OS Operating Structure OP Operational Programme PA Priority Axis PHARE Poland and Hungary Action for the Restructuring of the Economy PRAG Practical Guide to EC External Aid Contract Procedures RCOP Regional Competitiveness Operational Programme SAA Stabilization and Association Agreement SAPARD Special Accession Programme for Agriculture and Rural Development S&CF Structural & Cohesion Funds SCF Strategic Coherence Framework SDF Strategic Development Framework SMC Sectoral Monitoring Committee SMEs Small and Medium Enterprises SWOT Strengths and Weaknesses, Opportunities and Threats TA Technical Assistance

201 European Funds for Croatian Projects

ANNEX 4 - REFERENCES, FURTHER READING AND USEFUL LINKS

EU documents (regulations, decisions, communications)

1. Communication from the Commission: COM (2004) 257 ﬁ nal, Opinion on Croatia's Application for Membership of the European Union. Brussels, 20 April 2004, available at: http://eur-lex.europa.eu/ smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=en&numdoc=504DC0257;

2. Negotiating Framework, European Commission, 2005, available at: http://ec.europa.eu/enlargement/pdf/croatia/st20004_05_hr_framedoc_en.pdf;

3. Council Decision of 12 February 2008 on the principles, priorities and conditions contained in the Accession Partnership with Croatia and repealing Decision 2006/145/EC (2008/119/EC), available at: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:042:0051:0062:EN:PDF;

4. Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-accession Assistance (IPA), available at: http://eur-lex.europa.eu/LexUriServ/site/en/oj/2006/l_210/l_21020060731en00820093.pdf;

5. Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No 1085/2006 establishing an Instrument for pre-accession assistance (IPA), available at: http://eur-lex.europa.eu/LexUriServ/site/en/oj/2007/l_170/l_17020070629en00010066.pdf;

6. Communication from the Commission: COM (2007) 663 ﬁ nal, Enlargement Strategy and Main Challenges 2007-2008, Brussels, 6.11.2007, available at: http://ec.europa.eu/enlargement/pdf/key_documents/2007/nov/strategy_paper_en.pdf;

7. Commission Decision: on a Multi-annual Indicative Planning Document 2007-2009 for Croatia, available at: http://ec.europa.eu/enlargement/pdf/mipd_croatia_2007_2009_en.pdf;

8. Commission Decision: on a Multi-annual Indicative Planning Document 2008-2010 for Croatia, available at: http://ec.europa.eu/enlargement/pdf/mipd_croatia_2008_2010_en.pdf;

9. Communication from the Commission: COM (2008) 705 ﬁ nal, Instrument for pre-accession assistance, Multi-annual Indicative Financial Framework 2010-2012, Brussels, 5 November 2008, available at: http://ec.europa.eu/enlargement/pdf/press_corner/key-documents/reports_nov_2008/miff_2010_2012_en.pdf

10. Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999;

11. Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999;

12. Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999;

13. Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European Grouping of Territorial Cooperation (EGTC);

14. Commission Regulation 1828/2006 for the Implementation of General Regulation 1083/2006;

15. Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94;

16. Council Regulation (EC) No 1290/2005 on the ﬁ nancing of the Common Agricultural Policy;

17. Financial Perspectives 2007-2013: The road towards having European programmes operational on January 1st 2007, European Commission, Brussels, 2006; 202 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

18. Communication from the Commission COM(2005) 0299, 05/07/2005, Cohesion Policy in support of Growth and Jobs: Community Strategic Guidelines 2007-2013, European Commission, 2005.

Strategic and Programming documents

1. Strategic Development Framework, 2006-2013, Zagreb, 2006, CODEF, available at: http://www.strategija.hr;

2. Strategic Coherence Framework, 2007-2013, Instrument for Pre-accession Assistance, Zagreb, 2007, CODEF, available at: http://www.strategija.hr;

3. National Programme for the accession of the Republic of Croatia into the European Union, Zagreb, 2008, Ministry of Foreign Affairs and European Integration, available at: http://www.strategija.hr;

4. Pre-accession Economic Programme, Zagreb, 2007, available at: http://www.strategija.hr;

5. Glossary of the European Union Funds, Zagreb, CODEF, available at: http://www.strategija.hr;

6. IPA Programming Guide for Component I and II, Volume I-II, available at: http://www.strategija.hr;

7. Operational Programme for Cross Border Cooperation “Hungary-Croatia”, 2007-2013, available at: http://www.strategija.hr;

8. Operational Programme for Cross Border Cooperation “Slovenia-Croatia”, 2007-2013, available at: http://www.strategija.hr;

9. Operational Programme for Cross Border Cooperation “Adriatic”, 2007-2013, available at: http://www.strategija.hr;

10. Operational Programme for Cross Border Cooperation “Croatia-Bosnia and Herzegovina”, 2007-2013, available at: http://www.strategija.hr;

11. Operational Programme for Cross Border Cooperation “Croatia-Montenegro”, 2007-2013, available at: http://www.strategija.hr;

12. Operational Programme for Cross Border Cooperation “Croatia-Serbia”, 2007-2013, available at: http://www.strategija.hr;

13. Operational Programme for Transnational Cooperation “South East Europe”, 2007-2013, available at: http://www.strategija.hr;

14. Operational Programme for Transnational Cooperation “Mediterranean”, 2007-2013, available at: http://www.strategija.hr;

15. Operational Programme „Transport”, 2007-2009, available at: http://www.strategija.hr;

16. Operational Programme „Environment”, 2007-2009, available at: http://www.strategija.hr;

17. Operational Programme „Regional Competitiveness”, 2007-2009, available at: http://www.strategija.hr;

18. Operational Programme „Human Resource Development”, 2007-2009, available at: http://www.strategija.hr;

19. „Agriculture and Rural Development Plan”, 2007-2013, available at: http://www.strategija.hr;

20. Regulation on Responsible Institutions designating for management of Instrument for Pre-accession Assistance (OG 18/07, 82/07, 34/08);

21. Decision on nominating persons responsible for management of Instrument for Pre-accession Assistance (OG 18/07, 82/07, 24/08, 34/08); 203 European Funds for Croatian Projects

22. Framework Agreement between the European Community and the Republic of Croatia on the general principles for the participation of the Republic of Croatia in Community programmes, Ofﬁ cial Gazette (OG) International Agreements No. 6/2005).

Manuals, Guides, Handbooks

1. Aid Delivery Methods, Volume 1: Project Cycle Management Guidelines. Brussels: European Commission, EuropeAid, 2004, available at: http://ec.europa.eu/europeaid/multimedia/publications/documents/tools/ europeaid_adm_pcm_guidelines_2004_en.pdf;

2. New Funds, Better Rules. Overview of New Financial Rules and Funding Opportunities 2007-2013: A Beginners Guide, edition 2008. Luxembourg: Offi ce for Offi cial Publications of the European Communities, 2007, available at: http://ec.europa.eu/budget/library/publications/fi nancial_pub/pack_rules_funds_en.pdf;

3. Cohesion Policy 2007-13. Commentaries and ofﬁ cial texts; Guide, The European Communities, 2007;

4. Regional Development in Croatia and Utilisation of EU Programmes, Ines Kersan-Škabić, University of Pula, 2007, available at: http://sadapt.inapg.inra.fr/ersa2007/papers/803.RTF;

5. Programi Europske unije u Hrvatskoj, Hrvatska gospodarska komora /Euro info komunikacijski centar. Zagreb, 2006, available at: http://www.euroinfo.hr/ﬁ les/File/programi_eu.pdf;

6. Kako do eu fondova? 150 pitanja gospodarstvenika s odgovorima, Hrvatska gospodarska komora / Euro info komunikacijski centar. Zagreb, 2008, available at: http://www.euroinfo.hr/images/publications_pdf/10_150_pitanja_i_odgovora.pdf;

7. Programi Europske unije: Iskustva u provedbi projekata u Republici Hrvatskoj, Slađana Novota, Udruga za razvoj civilnog društva SMART. Rijeka, 2007, contact: www.smart.hr;

8. Pravila Europske zajednice o podrijetlu: Za opći sustav povlastica, vodič za EU korisnike, Hrvatska gospodarska komora / Euro info komunikacijski centar. Zagreb, 2007, available at: http://www.euroinfo.hr/ﬁ les/File/EU_pravila_o_podrijetlu.pdf;

9. Communication and Visibility Manual for EU External Actions, European Commission, April 2008, available at: http://ec.europa.eu/europeaid/work/visibility/index_en.htm;

10. Practical Guide for contract procedures for EC external actions: http://ec.europa.eu/europeaid/work/procedures/implementation/practical_guide/index_en.htm;

11. General procedures Manual for management of Structural Funds and Cohesion Fund in Bulgaria, Management of EU Funds Directorate, Ministry of Finance, Bulgaria, available at: http://www.eufunds.bg/docs/SFGeneral%20Manua_April%202007.pdf.

Useful links for grants and procurement procedures

1. EuropeAid Cooperation Ofﬁ ce website: http://ec.europa.eu/europeaid/cgi/frame12.pl

2. Further information on EU grants is available at: http://ec.europa.eu/grants/introduction_en.htm

3. Further information on EU public contracts: http://europa.eu/agencies/public_contracts/index_en.htm

4. European Commission Delegation to Croatia website: http://www.delhrv.ec.europa.eu/en/content/ListNews/catid/61

204 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

Useful links for information

1. Euro Info Centre in Croatia: http://www.euic.hr/

2. The EU at a glance: http://europa.eu/abc/index_en.htm;

3. The EU institutions and other bodies: http://europa.eu/institutions/index_en.htm;

4. Overviews of the EU policies: http://europa.eu/pol/overview_en.htm;

5. Europe in 12 Lessons by Pascal Fontaine: http://ec.europa.eu/publications/booklets/eu_glance/60/en.pdf;

6. Key facts and ﬁ gures about Europe and the Europeans: http://ec.europa.eu/publications/booklets/eu_glance/66/en.pdf;

7. EU documents: http://europa.eu/documents/index_en.htm;

8. EU booklets by topic: http://ec.europa.eu/publications/booklets/index_en.htm;

9. EU terminology: http://europa.eu/geninfo/info/guide/index_en.htm#term;

10. European portal for SMEs: http://ec.europa.eu/enterprise/sme/index_en.htm;

11. European Youth Portal: http://europa.eu/youth;

12. Research Enquiry Service: www.ec.europa.eu/research/enquiries;

205 European Funds for Croatian Projects

ANNEX 5 - GLOSSARY OF TERMS

TERM: DESCRIPTION:

The ability of a national administration to plan for and implement external assistance or the Absorption ability of potential beneﬁ ciaries to prepare quality projects vvhich vvould absorb the maximum capacity allocated funds

Measures to be implemented by the consultant within the framework of a EC funded project Activities with deﬁ ned outputs leading to results speciﬁ ed in the Terms of Reference

A schedule (either a graph or a description of activities) setting out the timing, sequence and Activity Schedule duration of project activities, identiﬁ ying milestones for monitoring progress nad assigning responsibility for achievement of milestones

Addendum A document modifying the terms and conditions of a contract

Advance Payment Payment made within a predetermined period after the contract signature.

A set of activities and mechanisms developed by a recipient government, whose objective is to maximise the impact of international assistance on the recipient country's economic and social Aid Co-ordination development, matching its strategy and sector priorities. In Croatia the coordination is done at the level of the Government's Permanent Working Group.

Budget earmarked by a donor government, organisation or institution for a certain period of Allocation time, in favour of a beneﬁ ciary country or organisation to develop certain assistance project(s) or programme(s).

Analysis of Identifi cation and verifi cation of future desired benefi ts to which the benefi ciaries attach priority. Objectives The output of an analysis of objectives is the objective tree/hierarchy of objectives.

Analysis of Critical assessment of the alternative ways of achieving objectives, and selection of one or Strategies more for inclusion in the proposed project.

Analysis of a proposed project to determine its merit and acceptability in accordance with established criteria. This is the ﬁ nal step before the project is agreed for ﬁ nancing. It checks Appraisal that the project is feasible against the situation on the ground that the objectives set remain appropriate and those costs are reasonable. Term often synonymously used for Feasibility study/Ex-ante evaluation.

A review undertaken during and after project's lifetime to determine whether immediate Assessment objectives were achieved.

External factors which could affect the progress or success of the project, but over which the Assumptions project manager has no direct control. They form the 4th column of the logframe, and are formulated in a positive way, e.g.: " Reform of penal procedures successfully implemented".

Are those who benefi t in whatever way from the implementation of the project. Distinction can be made between: (a) Project partners/direct benefi ciaries: those who are supported by EC funds in order to manage design and implementation of a project, i.e. usually: ministries, implementation agencies; (b) Intermediate benefi ciaries: those who are supported within the project in order to better perform services to the target group(s), e.g. agricultural extension staff, benefi ting from training measures to better perform their advisory services to "female and male members of farm households"; (c) Target group(s): the group / entity who will be Benefi ciaries positively affected by the project at the Project Purpose level and with whom the project will work very closely, e.g. the "female and male members of farm households" in case of the above extension project; (d) Final benefi ciaries: those who, beyond the level of the target groups, benefi t from the project in the long term at the level of the society or sector at large, e.g. "children" due to increased spending on health and education, "consumers" due to improved agricultural production and increased export earnings from improved agricultural production and marketing.

206 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

TERM: DESCRIPTION:

Beneﬁ ciary The country or state outside the European Union, with which the European Communities have country an agreed programme of co-operation.

A public invitation by the Contracting Authority for the submission of project proposals by clearly Call for proposals identiﬁ ed types of applicants and within the framework of a speciﬁ c EU policy programme (applicable for grant procedures).

Any natural or legal person or group thereof applying to take part in a restricted tender Candidate procedure/call for proposals.

Central Finance An implementing body of the Decentralised Implementation System (DIS) in charge of and Contracting tendering, contracting and payments for EC funded decentralised projects. For these projects Agency - CFCA the technical implementation is carried out by a Senior Programme Ofﬁ cer.

Centralised Implementation system in which procurement and management of EC funded programmes Implementation is carried out by EC Headquarters (Brussels) on behalf of the Government of the beneﬁ ciary System country.

The executive arm of the European Union with powers of initiative, implementation, management and control. It is the guardian of the Treaties and the embodiment of the interests of the Community. It is composed of twenty independent members, including a President and Commission of two Vice-Presidents. It is appointed for a ﬁ ve-year term, by agreement among the Member the European States, and is subject to a vote of appointment by the European Parliament, to which it is Communities answerable, before it can be sworn in. The Commissioners are assisted by an administration made up of Directorates General and specialised departments whose staff are divided mainly between Brussels and Luxembourg

A commitment is a formal decision taken by the Commission to set aside a certain amount of Commitment money for a particular purpose. No expenditure can be incurred in excess of the authorised commitment.

A set of decisions or actions required by the donor as a pre-requisite to a positive decision to Conditionality funding a particular project or programme of assistance or for starting the project.

Any event infl uencing the capacity of a candidate, tenderer or consultant/supplier/contractor to give an objective and impartial professional opinion, or preventing it, at any moment, from giving priority to the interests of the Contracting Authority. Any consideration relating to possible Confl ict of interest contracts in the future or confl ict with other commitments, past or present, of a consultant/ supplier/contractor. These restrictions also apply to any sub-contractor and employees of the consultant/supplier/contractor as well as the employees of the Contracting Authority.

A grouping of eligible natural and legal persons which submits a tender or application to a tender procedure or a Call for Proposals. It may be a permanent, legally-established grouping Consortium or a grouping which has been constituted informally for a speciﬁ c tender procedure or Call for Proposals. All members of a consortium (i.e., the leader and all other partners) are jointly and severally liable to the Contracting Authority.

A public or private organisation, consortium or individual with whom the Contracting Authority Consultant enters into a service contract. A ﬁ rm, consortium or individual to whom a service contract is awarded.

An agreement with speciﬁ c terms between two or more persons or entities in which there Contract is a promise to provide services and/or supplies in return for a valuable beneﬁ t known as consideration.

207 European Funds for Croatian Projects

TERM: DESCRIPTION:

The procedure followed by the Contracting Authority to identify a consultant/supplier/contractor/ Contract award beneﬁ ciary to provide deﬁ ned services/supplies/works/grants and conclude a contract with procedure them.

A breakdown of costs of performing the contract. The total of these costs is the contract Contract budget value.

The party concluding the contract. Depending on the implementation system (CIS, CDIS, Contracting DIS) the Commission, a public administration body of the beneﬁ ciary country or a private legal Authority person

The public or private organisation, consortium or individual with whom the Contracting Authority Contractor enters into a contract. The ﬁ rm, individual or consortium to which a contract is awarded.

Cost Costs are translation into ﬁ nancial terms of all identiﬁ ed resources ("Means").

Day Calendar day

Partial transfer of responsibility for managing assistance programmes from EC Headquarters Decentralisation (Brussels) to the authorities of the beneﬁ ciary country, covering the implementation phase of the project cycle.

Decentralised Implementation System of the EC external aid programmes where part of the management Implementation and responsibilities have been transferred to the Partner Country whilst the Commission System (DIS) retains the ﬁ nal responsibility under the EC Treaties.

Transfer of responsibility for managing assistance programmes from the EC Headquarters Deconcentration (Brussels) to the EC Delegation in the beneﬁ ciary country, covering all phases of the project cycle.

Description of the A detailed description of a proposed project and its various activities (preparation, Operation implementation, evaluation, etc.)

The award of one or more grants without organising a call for proposals. A direct award is Direct Award only appropriate under certain special circumstances and must always be the subject of an evaluation report.

Directorate General for Directorate General of the European Commission in charge of co-ordinating external relations External Relations activities of the Commission and giving policy orientations to the assistance programmes. (DG RELEX)

EC European Commission

EC HQ European Commission Headquarters in Brussels

EC Services A common term describing the European Commission and its General Directorates

Hierarchically a part of the Commission structure, Delegations are promoting the Community’s interests as embodied in the common policies, chieﬂ y the common commercial policy, but also many others, including the agricultural, ﬁ sheries, environmental, transport and health and safety policies. It also means involvement in areas such as Justice and Home Affairs, in which the European Community does not have exclusive powers. In addition, Delegations play a key European role in the implementation of external assistance. Delegations also play an increasing role in Commission the conduct of the Common Foreign and Security Policy, providing regular political analysis, Delegation conducting evaluations jointly with Member State Embassies and contributing to the policy making process. Finally, Delegations provide support and assistance as necessary to the other institutions and actors of the EU. In all these areas, Delegations serve an increasingly important information function as well, providing background and updates on European integration and EU policies to host governments and administrations, media, academia, business circles and civil society.

208 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

TERM: DESCRIPTION:

An assessment of the contribution made by results to achievement of the project purpose, and Effectiveness how Assumptions have affected project achievements.

The fact that results were obtained at reasonable cost, i.e. how well inputs/means have been Efﬁ ciency converted into Results, in terms of quality, quantity and time, and the quality of Results.

A set of conditions for a candidate to be allowed to take part in a tender/call for proposasl and Eligibility Criteria to be awarded an EC funded contract. Nationality and origin are the main ones.

EuropeAid Directorate General of the European Commission in charge of implementing and monitoring Cooperation external aid instruments of the European Commission which are funded by the European Ofﬁ ce Community budget and the European Development Fund (EDF).

European Union Economic and political association of 27 European countries.

A periodic assessment of the efﬁ ciency, effectiveness, impact, sustainability and relevance of a project in a context of stated objectives. It is usually undertaken as an independent evaluation Evaluation of the background, objectives, results, activities and means deployed, with a view to drawing lessons that may guide future decision-making.

A committee made up of an odd number of voting members, appointed by the Contracting Evaluation Authority, and possessing the necessary technical, linguistic and administrative capacities to Committee give an informed opinion on tenders or grant applications.

The ﬁ nal phase of the project cycle during which the project is examined against its objectives, Evaluation Phase and lessons are used to inﬂ uence future actions.

A person engaged by a contractor to provide the relevant expertise required for the proper Expert performance of a contract.

A summary, prepared by the Contracting Authority in a predesigned format, attached to the Explanatory note front of a contract or addendum dossier explaining to the reader the purpose and background of the proposed contract or dossier.

A document, in a pre-designed format, completed by companies who, following the publication Expression of of a procurement notice for a restricted service tender procedure (in the Ofﬁ cial Journal of the interest European Communities and on the web page of the EuropeAid Cooperation Ofﬁ ce), wish to be considered for the shortlist for a project.

Feasibility Assessment on whether the project objectives can be really achieved.

A feasibility study, conducted during the Appraisal Phase, verifi es whether the proposed project is well-founded, and is likely to meet the needs of its intended target groups / benefi ciaries. The study should design the project in full operational detail, taking account of all policy, technical, Feasibility Study economic, fi nancial, institutional, management, environmental, socio-cultural, gender-related aspects. The study will provide the European Commission and partner government with suffi cient information to justify acceptance, modifi cations or rejection of the proposed project for further fi nancing.

Fee-based A contract under which the services are provided on the bases of ﬁ xed fee rates. contract

Final payment Payment of the balance of the ﬁ nal certiﬁ ed contract value.

The part of a tender which contains all ﬁ nancial elements of the tender, including its summary Financial Offer budget and any detailed price breakdown or cash ﬂ ow forecast required by the tender dossier.

The document signed between the European Commission and the partner country or Financing countries subsequent to a ﬁ nancing decision. It includes a description of the particular project Agreement or programme to be funded. It represents the formal commitment of the European Union and the partner country to ﬁ nance the measures described.

209 European Funds for Croatian Projects

TERM: DESCRIPTION:

Financing The European Commission’s decision to adopt the measures proposed in the Financing Decision Proposal, taken after the opinion of the IPA Management Committee.

Financing Phase The fourth phase of the project cycle during which projects are approved for ﬁ nancing.

The general rules and conditions European Commission with the governing the cooperation Framework of the beneﬁ ciary country concerned, which are the legal basis for the implementation of all assistance operations in that country.

A ﬁ xed-term contract of a limited value (up to € 200,000.00) awarded by a special procurement Framework procedure. EC periodically chooses contractors for various types of services and publishes Contract lists thereof.

Framework A company or a consortium chosen by the EC to provide services under the Framework Contractor Contract

The social differences that are ascribed to and learned by women and men, and that vary over Gender time and from one society or group to another. Gender differs from sex, which refers to the biologically determined differences between women and men.

EU policy on gender mainstreaming in development co-operation requires the integration of gender analysis at macro, meso and micro levels, throughout the project cycle. A gender analysis allows the identifi cation and integration of the dynamics of change in a given situation, as well as the monitoring of their evolution, particularly in relation to the disparities between Gender Analysis women and men. A gender analysis includes attention to: the different roles (productive, reproductive, decision-making) of women and men; their differential access to and use of resources and their specifi c needs, interests and problems; and the barriers to the full and equitable participation of women and men in project activities and to equity between women and men in the benefi ts obtained

The promotion of equality between women and men in relation to their access to social and economic infrastructures and services and to the beneﬁ ts of development is vital. The Gender Equality objective is reduced disparities between women and men, including in health and education, in employment and economic activity, and in decision-making at all levels. All programmes and projects should actively contribute to reducing gender disparities in their area of intervention.

The general contractual provisions setting out the administrative, ﬁ nancial, legal and technical General clauses governing the execution of all contracts of a particular type (services, supplies, works Conditions or grants).

A direct payment of a non-commercial nature to a specifi c benefi ciary to implement an action Grant (or in some cases to fi nance part of its budget) in order to promote an EC policy aim.

A project proposal following a standard application form in response to an EC call for Grant Application proposals.

Grant Beneﬁ ciary The recipient of a grant.

A programme which determines the objectives and scale of assistance in the form of grants Grant Programme for actions promoting EC policy aims

Document explaining the purpose of a Call for Proposals for grants. It includes the rules Guidelines for regarding who may apply, the types of actions and costs which may be ﬁ nanced and the Applicants evaluation criteria. It also provides practical information on how to complete the application form, which annexes are required, and procedural and contractual rules.

Hierarchy of A diagrammatic representation of the proposed project intervention planned logically, following Objectives a problem analysis, showing a means to end relationship. Synonym: Objectives tree.

210 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

TERM: DESCRIPTION:

The second phase of the project cycle. It involves the initial elaboration of the project idea Identiﬁ cation in terms of objectives, results and activities, with a view to determining whether or not to go Phase ahead with a feasibility study.

The effect of the project on its wider environment, and its contribution to the wider sectoral Impact objectives summarized in the projects Overall Objectives, and on the achievement of the overarching policy objectives of the EC.

Implementation The ﬁ fth phase of the project cycle during which the project is implemented, and progress Phase towards achieving objectives is monitored.

The period from project start until the writing of the inception report. During this phase, an Inception Phase assessment of the ToR is carried out and the course of project implementation is elaborated.

Report produced at the end of the inception period, which updates the project design and/or Inception Report the terms of reference and sets the work plan for the rest of the project.

Integrated The consistent examination of a project throughout all the phases of the project cycle, to approach ensure that issues of relevance, feasibility and sustainability remain in focus.

Letter sent to selected candidates when using a restricted or simpliﬁ ed procedure inviting Intervention Logic them to submit a tender.

A committee, consisting of NAC, PAO and the Commission representatives, in charge of the Joint Monitoring review of the IPA programmes. The NAC and the EC Delegation will jointly chair the JMC (in Committee a decentralised implementation system).

Logical A methodology for planning, managing and evaluating programmes and projects, involving Framework stakeholders analysis, problem analysis, analysis of objectives, analysis of strategies, Approach (LFA) preparation of logframe matrix and activity and resource.

Logical The matrix in which a projects intervention logic, assumptions, objectively veriﬁ able indicators Framework Matrix and sources of veriﬁ cation are presented. (Logframe)

Means are physical and non-physical resources (often referred to as "Inputs") that are Means necessary to carry out the planned activities and manage the project.

A type of Objectively Veriﬁ able Indicators (OVI) providing indications for short and medium- term objectives (usually activities) which facilitate measurement of achievements throughout Milestones a project rather then just at the end. They also indicate times when decisions should be made or action should be ﬁ nished.

The systematic and continuous collecting, analysis and using of information for the purpose of Monitoring management and decision-making.

Most The tender regarded as the best according to the criteria laid down for the contract in question Economically e.g. quality, technical properties, aesthetic and functional qualities, after-sales service and Advantageous technical assistance, delivery date or performance period and the price. These criteria must Tender be published in the procurement notice or stated in the tender dossier.

The State Minister responsible for EU affairs, in charge of the programming within the recipient National Aid country. The NAC also ensures a close link between the SAp and the use of Community Coordinator ( for ﬁ nancial assistance, and is responsible for the monitoring and assessment of the decentralised EU assistance) EC programmes.

211 European Funds for Croatian Projects

TERM: DESCRIPTION:

Procedure without prior publication of a procurement notice, in which the Contracting Authority Negotiated consults the candidate or candidates of its choice and negotiates the terms of the contract with procedure one or more of them.

Objective Description of the aim(s) of a project or programme.

A diagrammatic presentation of a hierarchy of objectives of a given programme describing Objective tree their means/ends relationship following a problem analysis.

Objectively Measurable indicators that will show whether or not objectives have been achieved. OVIs Veriﬁ able provide the basis for designing an appropriate monitoring system. Indicators (OVI)

Procedure in which any natural or legal person or group thereof may submit a tender in Open procedure response to a procurement notice.

Output Partial or consolidated product of an activity undertaken in the framework of a project.

They explain why the project is important to society, in terms of the longer term benefi ts to fi nal benefi ciaries and the wider benefi ts to other groups. They also help to show how the programme fi ts into the regional / sectoral policies of the government / organizations Overall objectives concerned and the EC, as well as into the overarching policy objectives of EC co-operation. The Overall Objectives will not be achieved by the project alone (it will provide a contribution to the achievement of Overall Objectives), but will require the contributions of other programmes and projects as well.

A general project management term describing the active participation of the recipient Ownership institutions in a beneﬁ ciary country within the framework of a particular project to ensure legitimacy, responsibility and sustainability of the project.

Man Day A working day of 8 hours.

Man Month A man month consists of 22 working days.

Project Implementation Unit The unit within a government institution responsible for the preparation and technical implementation of EU funded projects. Within its institution PIU is directly answerable to SPO. PIU PIU closely cooperates with the EC Delegation and Coordination Directorate during project preparation and with the Contracting Authority (EC Delegation or CFCU depending on the implementation system) during project implementation

Policy Agenda A set of policies implemented by a government or an organisation

The activities involved in getting and using power in public life and being able to inﬂ uence Politics decisions that affect a country or a society.

Practical Guide to EC External The European Commission’s guide on procurement and contracting procedures and rules Aid Contract which apply to EC external aid contracts. Procedures

The pre-feasibility study, conducted during the identifi cation phase, ensures that all problems are identifi ed and alternative solutions are appraised, and selects a preferred alternative on Pre-feasibility the basisof Quality Factors. The study will provide the European Commission and partner study government with suffi cient information to justify acceptance, modifi cation or rejection of the proposed project for further appraisal.

212 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

TERM: DESCRIPTION:

Pre-conditions Conditions, known to all parties, that have to be met before the project can commence.

A structured investigation of the negative aspects of a situation in order to establish causes Problem Analysis and their effects.

A diagrammatic presentation of a hierarchy of problems describing their cause/effect Problem tree relationship.

A document in a pre-designed format published by the Contracting Authority launching a Procurement tender. It is compulsorily published in the Ofﬁ cial Journal of the European Communities. It notice also appears in the tender database on the EuropeAid web site.

Programme A series of projects with a common overall objective(s).

An offi cial of the national administration responsible for the implementation of all or part of Programme a programme managed under DIS. The Minister of Finance and the Minister for European Authorising Offi cer Integration jointly nominate the PAO and this nomination must be formally communicated to (PAO) the European Commission. The PAO is responsible for the operations of the CFCU and for the sound fi nancial management of the projects to be implemented in a decentralised manner.

Programming The ﬁ rst phase of the project cycle during which the Indicative Programme is prepared. Phase

An interim report on progress of work on a project submitted by the project management Progress report / contractor to the partner organization and the Commission within aspeciﬁ c timeframe. It includes sections on technical and ﬁ nancial performance. It is usually submitted quarterly.

A series of activities with set objectives, designed to produce a speciﬁ c outcome within a Project limited time frame

The project cycle follows the life of project from the initial idea through to its completion. It provides a structure to ensure that stakeholders are consulted, and deﬁ nes the key decisions, Project Cycle information requirements and responsibilities at each phase so that informed decisions can be made at each phase in the life of a project. It draws on evaluation to build the lessons of experience into the design of future programmes and projects.

Project Cycle A methodology for the preparation, implementation and evaluation of projects and programmes Management based on the integrated approach and the logical framework approach. (PCM)

The document in a pre-designed format prepared by the national authorities of the benefi ciary country setting out comprehensive information on the background, expected benefi ciaries, objectives, relation to other donors or projects, main activities, budget and duration of the Project Fiche proposed project. For a particular year all project fi ches along with the respective logframes are annexed to the Financing Proposal, which is submitted to the CARDS Management Committee.

The initial stage of a project generally based on the identiﬁ cation of a problem and determination Project idea of its possible solution.

The person responsible for monitoring the implementation of the contract on behalf of the Project Manager Contracting Authority.

The central objective of the project. The purpose should address the core problem, and be Project Purpose deﬁ ned in terms of sustainable beneﬁ ts for the target group's). There should only be one Project Purpose per project.

Criteria that are known to have had signifi cant impact on the sustainability of benefi ts generated by projects in the past, and which have to be taken into account in the design Quality Factors and implementation of each project (previously "Sustainability Criteria"): ownership by benefi ciaries, policy support, economic and fi nancial factors, socio-cultural aspects, gender, appropriate technology, environmental aspects, and institutional and management capacity.

213 European Funds for Croatian Projects

TERM: DESCRIPTION:

The appropriateness of project objectives to the real problems needs and priorities of the Relevance intended target groups and beneﬁ ciaries that the project is supposed to address, and to the physical and policy environment within which it operates.

Resource A breakdown of the project budget where means and costs are linked to activities, and detailed Schedule for a given period of time.

Restricted Procedure in which, after publication of a procurement notice, only candidates invited by the Procedure Contracting Authority may submit a tender.

Results are direct consequences of outputs.The combination thereof achieves the purpose of Results the project.

External factors and events that could affect the progress or success of the project, and that Risks are not very likely to hold true. They are formulated in a negative way, e.g.: "Reform of penal procedures fails".

Senior An ofﬁ cial of the national administration (line ministry/agency) in charge of the technical Programming implementation of the projects. Ofﬁ cer ( SPO)

A contract between a service provider and the Contracting Authority for the provision of Service Contract services such as technical assistance or studies.

Service provider Any natural or legal person offering its services.

List of companies who submitted expressions of interest in bidding for a contract following Shortlist the publication of a procurement notice, who were selected by a Shortlist Panel set up by the Contracting Authority to take part in a tender.

Simpliﬁ ed Procedure without prior publication of a procurement notice, in which only candidates invited procedure by the Contracting Authority may submit a tender.

Special Clauses speciﬁ c to the contract laid down by the Contracting Authority as an integral part of Conditions the contract, including amendments to the General Conditions.

The agreement between the European Community and its Member States and the relevant Stabilisation South-Eastern European government setting out a framework for close cooperation in the and Association political and institutional stabilisation in the South- Eastern Europe and for the promotion of Agreement (SAA) economic and trade relations.

Identiﬁ cation of all stakeholder groups likely to be affected by the proposed intervention; the Stakeholder identiﬁ cation and analysis of their interests, problems, potentials, etc. The conclusions of this Analysis analysis are then integrated into the project design.

Any individuals, groups of people, institutions or ﬁ rms that may have a relationship with the project / programme are deﬁ ned as stakeholders. They may - directly or indirectly, Stakeholders positively or negatively - affect or be affected by the process and the outcomes of projects or programmes.

Steering A committee of beneﬁ ciaries and/or stakeholders established to guide or supervise an Committee assistance project.

All items which the supplier is required to supply to the beneﬁ ciary, including, where necessary, service such as installation, testing, commissioning, provision of expertise, supervision, Supplies maintenance, repair, training and other such obligations connected with the items to be provided under the contract.

A contract between a supplier and the Contracting Authority for the purchase, lease, hire or Supply Contract hire-purchase (with or without the option to buy) of goods. It may also cover such tasks as installation, servicing, repairs, training and after-sales service.

214 FINANCIAL COOPERATION BETWEEN EU AND CROATIA DURING PRE-ACCESSION PERIOD

TERM: DESCRIPTION:

The likelihood of continuation in the stream of beneﬁ ts produced by the project after the period Sustainability of external support has ended.

Strategic planning tool for analysis of the competitive position of an organization, country SWOT Analysis or region. SWOT stands for Strengths and Weaknesses, and external Opportunities and Threats.

Target group The group / entity who will be positively affected by the project at the Project Purpose level.

The part of the tender which contains all non-fi nancial elements of the tender dossier, i.e. all Technical Offer elements other than the fi nancial offer which are required by the tender dossier. The technical offer must not contain any fi nancial indications.

The dossier compiled by the Contracting Authority and containing all the documents needed Tender dossier to prepare and submit a Tender.

A document drawn up by the PIU deﬁ ning the tasks required of a contractor and indicate Terms of project background and objectives, planned activities, expected inputs and outputs, budget, Reference (ToR) timetables and job descriptions.

An instrument developed the European Commission whereby Member States' Public administrations develop partnership with counterpart’s public administrations in applicant or partner countries. Under a twinning project, Member states' civil servants are seconded to Twinning serve as advisers in the counterpart administration of the partner country. The Twin Member States' administration is selected after a competition among administrations of several Member States.

The schedule that sets out the activities and resources necessary to achieve a projects results Work plan and purpose.

A contract between a construction ﬁ rm and the Contracting Authority for the execution of Works contract works or the building of a structure.

215 European Funds for Croatian Projects A Handbook on Financial Cooperation and European Union Supported Programmes in Croatia

Authors: Slađana Novota, Ivana Vlašić, Rumiana Velinova, Kiril Geratliev, Olga Borissova © Central Ofﬁ ce for Development Strategy and Coordination of EU Funds, 2009

ISBN 978–953–7443–09–2

Central Ofﬁ ce for Development Strategy and Coordination of EU Funds

Radnička cesta 80/V 10000 Zagreb, Croatia Tel.: (+ 385 1) 4569 179 Fax: (+ 385 1) 4569 150 E-mail: [email protected] http://www.strategija.hr