BULGARIA - THE FORMER YUGOSLAV RЕPUBLIC OF MACEDONIA IPA CROSS-BORDER PROGRAMME CCI Number: 2007CB16IPO007 1 TABLE OF CONTENTS 1 INTRODUCTION........................................................................................................................................ 4 1.1 Relevant background.............................................................................................................5 1.1.1 Instrument for Pre-Accession Assistance (IPA) .................................................................5 1.1.2 Instrument for Pre-Accession Assistance - Cross-border Cooperation (IPA CBC) ..................6 1.1.3 European Regional Development Fund (ERDF).................................................................7 1.2 The programming process......................................................................................................7 2 DESCRIPTION OF THE PROGRAMME AREA......................................................................................... 9 2.1 Definition of the eligible cross-border area...............................................................................9 2.2 Description of the eligible cross-border area ..........................................................................10 2.2.1 Geographical features ..................................................................................................10 2.2.2 Demography ...............................................................................................................11 2.3 Economic, social and cultural profile of the targeted area........................................................14 2.3.1 Economic development and structure of economy ..........................................................14 2.3.2 Labour market ............................................................................................................17 2.3.3 Education, research & development ..............................................................................18 2.3.4 Infrastructure..............................................................................................................19 2.3.5 Environment and nature...............................................................................................23 2.3.6 Culture .......................................................................................................................24 2.3.7 Institutional development.............................................................................................25 3 ANALYSIS OF THE TARGETED CROSS-BORDER AREA.................................................................... 27 3.1 SWOT Analysis....................................................................................................................27 3.2 Previous experiences ...........................................................................................................31 3.2.1 Phare and CARDS cross border activities until 2006 ........................................................31 3.2.2 Neighbourhood Programme the Republic of Bulgaria - the former Yugoslav Republic of Macedonia 2004-2006..................................................................................................................31 3.2.3 Lessons learned ..........................................................................................................33 4 JOINT CROSS-BORDER DEVELOPMENT STRATEGY – GLOBAL AND SPECIFIC PROGRAMME OBJECTIVES .................................................................................................................................................. 34 4.1 Strategic preconditions ........................................................................................................34 4.2 Strategy principles...............................................................................................................34 4.3 Objectives and priority axes .................................................................................................35 4.4 Objectives’ logics.................................................................................................................42 4.5 Guiding principles................................................................................................................42 4.6 Financing plan ....................................................................................................................43 4.7 Correspondence with other EU-Programmes and national Programmes ....................................43 4.7.1 Community Strategic Guidelines on Cohesion 2007 – 2013..............................................44 4.7.2 National Strategic Reference Framework for Bulgaria 2007-2013 .....................................44 4.7.3 National Development Plan for the former Yugoslav Republic of Macedonia 2007-2009......45 4.7.4 Sectoral Operational Programmes in Bulgaria.................................................................45 4.7.5 Sectoral IPA Programmes in the former Yugoslav Republic of Macedonia..........................48 4.7.6 Summary....................................................................................................................50 4.8 Programme indicators..........................................................................................................52 5 IMPLEMENTING AND FINANCIAL PROVISIONS .................................................................................. 55 5.1 Management and implementation structures..........................................................................55 5.1.1 Joint Monitoring Committee (JMC) ................................................................................56 5.1.2 Managing Authority (MA) .............................................................................................57 5.1.3 National Authority (NA)................................................................................................58 5.1.4 Joint Technical Secretariat (including Branch JTS) ..........................................................59 5.1.5 Certifying Authority (CA) ..............................................................................................59 5.1.6 Audit Authority (AA) ....................................................................................................60 5.1.7 Group of Auditors ........................................................................................................61 5.1.8 Controllers ..................................................................................................................61 5.2 Generation, application and selection of operations ................................................................62 5.2.1 Lead beneficiary/partner ..............................................................................................62 5.2.2 Other beneficiaries/partners .........................................................................................62 5.2.3 Project generation/preparation .....................................................................................62 5.2.4 Application..................................................................................................................62 5.2.5 Project assessment......................................................................................................63 2 5.2.6 Project selection and approval ......................................................................................64 5.2.7 Contracting.................................................................................................................64 5.3 Financial management and control........................................................................................64 5.3.1 First level control and payments ...................................................................................64 5.3.2 Auditing......................................................................................................................64 5.3.3 Project modifications ...................................................................................................65 5.3.4 Irregularities ...............................................................................................................65 5.4 Monitoring ..........................................................................................................................66 5.5 Evaluation ..........................................................................................................................67 5.5.1 Ex ante evaluation.......................................................................................................67 5.5.2 Strategic Environmental Assessment (SEA) ....................................................................69 5.5.3 Evaluations during the programme period......................................................................82 6 PUBLICITY AND COMMUNICATION...................................................................................................... 82 3 1 INTRODUCTION The present document represents a cross-border cooperation programme that sets the priorities for cooperation between Republic of Bulgaria and the former Yugoslav Republic of Macedonia1 for the programming period of 2007 – 2013. The document was elaborated in September 2006 – May 2007 as a result of the coordinated efforts of the relevant national authorities and various regional partners involved and represented in the Joint Task Force (JTF), which comprises of: - for Bulgaria – representatives of the