BULGARIAN REGIONAL DEVELOPMENT POLICY IN THE CONTEXT OF EUROPEAN INTEGRATION

RESULTS, APPRAISALS AND EXPECTATIONS IN DEPARTMENTAL AREAS OF REGIONAL COOPERATION

CHALINGES FACED BY BULGARIAN LOCAL AUTHORITIES arch. Belin Mollov – Advisor to the Minister of Regional Development and Public Works

Third Assembly May 26th, 2009 - Nis

EU BUDGET 2007 – 2013 (975 bilion )

Competitiveness and cohesion (44%)Natural resources: agriculture, rural development, environment and fisheries (43%)Citizenship, freedom, security and justice (1%)The EU as a global player (6%)Other including administrative expenditure (6%)

44%

43%

6%6%1%

1. European Fund for Regional development2. European Social Fund3. Cohesion Fund

Strengthening of the regional competitiveness within the framework of sustainable development;

Human capital development and social inclusion; Improving general welfare; Reducing regional disparities; Modernizing governance on all levels; Increasing of the feeling of belonging to Europe.

COHESION POLICY 2007 – 2013

OBJECTIVE 1 – 78,50% CONVERGENCE

OBJECTIVE 2 – 17,56% REGIONAL COMPETITIVENESS AND EMPLOYMENT

OBJECTIVE 3 – 3,94% TERRITORIAL COOPERATION TRANSBORDER – INTERREG IVA INTERREGIONAL - INTERREG IVB TRANSNATIONAL - INTERREG IVC

11

FINANCING BY FUNDS

COMPETITIVENESS AND COHESION

NATURAL RESOURCES

ЕAGFEAFRD

ЕFFERDF ЕSF CF

ОPRD

ОP – CBE

5 ОP for CBCBG – GR – INTERREG BG – RO – INTERREG BG – TU – INTERREG + IPABG – SER – INTERREG + IPA BG – МAC – INTERREG + IPA

ОP – HRD

ОP – AC

ОP – T

ОP – E

NPARD NPF

COMPETITIVENESS

ENVIRONMENT

RURAL DEVELOPMENT

LIDER

PRD

5

154988

1 033

1 624

1 466

1 36148

ОП" Административен капацитет" ОП" Конкурентноспособност"

ОП"Развитие на човешките ресурси" ОП" Транспорт"

ОП" Околна среда" ОП" Регионално развитие"

ОП" Техническа помощ"

INDICATIVE FINANCIAL FRAMEWORK (2007 – 2013) INDICATIVE FINANCIAL FRAMEWORK (2007 – 2013)

АC CE

HR

Т

ТARD

E

СЕРТИФИЦИРАЩ ОРГАН МИНИСТРЕСТВО НА

ФИНАНСИТЕ

ОPRegional

development

Managing authority

MRDPW

ОP Competitiveness of Bulgarian

economy

Managing authority

MEE

ОPHuman

resources development

Managing authority

MLSP

ОP Environment

Managing authority

MOEW

ОP Transport

Managing authority

MT

ОP Administrative

capacity

Managing authority

MSAAR

6 IMB 1 IMB 3 IMB 1 IMB

CENTRAL COORDINATION UNIT – MANAGING AUTHORITY – MINISTRY OF FINANCE

MONITORING COMMETTEENATIONAL STRATEGIC REFERENCE FRAMEWORK

INTERNAL AUDIT

EX ANTE CONTRO

L

ЕUROPEAN COMMISION COMMUNITY STRATEGIC GUIDELINES

BENEFICIARIES

AUDITING AUTHORITYMINISTRY OF FINANCE

CERTIFICATE (PAYING) AUTORITY MINISTRY OF FINANCE

EU NEW REGLAMENTS

EX ANTE EVALUATIO

N

ОPTechnical assistence

Managing authority

MF

INSTITUTIONAL FRAMEWORK

ОПЕРАТИВНИПРОГРАМИ

ОПЕРАТИВНИПРОГРАМИ

ОПЕРАТИВНИПРОГРАМИ

ОПЕРАТИВНИПРОГРАМИ

OPERATIONALPROGRAMS

OPERATIONALPROGRAMS

NATIONAL STRATEGIC REFERENCE FRAMEWORK

NATIONAL STRATEGIC REFERENCE FRAMEWORK

PLANNING PROCESS

COMMUNITY STRATEGIC GUIDELINES

COMMUNITY STRATEGIC GUIDELINES

NATIONAL SECTORAL STRATEGIES

NATIONAL SECTORAL STRATEGIES

NATIONAL STRATEGY FOR REGIONAL DEVELOPMENT

NATIONAL STRATEGY FOR REGIONAL DEVELOPMENT

6 REGIONAL DEVELOPMENT PLANS (NUTS II)

6 REGIONAL DEVELOPMENT PLANS (NUTS II)

28 DISTRICT DEVELOPMENT STRATEGIES

28 DISTRICT DEVELOPMENT STRATEGIES

264 MUNICIPAL DEVELOPMENT PLANS

264 MUNICIPAL DEVELOPMENT PLANS

NATIONAL SECTORAL STRATEGIES

NATIONAL SECTORAL STRATEGIESNATIONAL SECTORAL

STRATEGIES

NATIONAL SECTORAL STRATEGIES

COMMUNITY STRATEGIC GUIDELINES

Making Europe and its regions more attractive places to invest and work Expand and improve transport infrastructures To strengthen the synergies between environmental protection and growth Address Europe’s intensive use of traditional energy sources

Improving knowledge and innovation for growth Increase and improve investment in RTD Facilitate innovation and promote entrepreneurship Access to finance

More and better jobs Attract and retain more people in employment and modernise social protection Improve adaptability of workers and enterprises and flexibility of labour market Increase investment in human capital through better education and skills Help maintain a healthy labour force Administrative capacity

Taking account of the territorial dimension of cohesion policy The contribution of cities to growth and jobs Supporting the economic diversification of rural areas Cooperation (Cross-border, Transnational, Inter-regional)

NATIONAL STRATEGIC REFFERENCE FRAMEWORK

The long term vision for Bulgaria combines two specific medium-term goals for the duration of the 2007-2013 programming period. These have been developed, based on the EU priorities and are inline with the Community Strategic Guidelines:

Strengthen the competitiveness of the economy to achieve high and sustainable growth;

Develop human capital to ensure higher employment, income and social integration.

To achieve the overall medium term goals Bulgaria needs to focus on four strategic priorities – three thematic and one territorial:

Improving basic infrastructure; Increasing quality of human capital with a focus on employment; Fostering entrepreneurship, favourable business environment and good

governance; Supporting balanced territorial development

PROGRAMING DOCUMENTS

At national level National strategic referent

framework Operational programs

At regional level Regional development plans

(NUTS 2)

At local level District development strategies

(NUTS 3) Municipal development plans

(NUTS 4)

NSRFNSRF

OPERATIONALOPERATIONALPROGRAMSPROGRAMS

REGIONAL REGIONAL DEVELOPMENTDEVELOPMENT

PLANSPLANS

DISTRICT DEVELOPMENT DISTRICT DEVELOPMENT STRATEGIESSTRATEGIES

MUNICIPAL DEVELOPMENT PLANSMUNICIPAL DEVELOPMENT PLANS

INVESTMENT PROJECTS

LISBON STRATEGY

OPERATIONAL PROGRAMM “REGIONAL DEVELOPMENT”

Given the scale of the National Strategic Reference Framework, OP “Regional Development” contains priorities and interventions in relation only to structural funds and national co-financing. The programm is directed at the main problems already identified by the Government of Bulgaria and at the policy towards their solution by securing the provision of additional EU financing for support to the national priorities and resources in the areas eligible for Structural funds, and in particular – for the European Regional Development Fund (ERDF). Thus, OP “Regional Development” sets out a coherent regional development strategy for the period 2007-2013 supported by a multi-annual investment commitment in the key areas of infrastructural development of urban centres, territorial connectivity, sustainable tourism growth and support to regional and local partnerships.

ЕRDFЕRDF

TOTAL BUDGET1 601 274 759 €1 361 083 545 € - ERDF (85%)240 191 214 € - national co-financing (15%)

TOTAL BUDGET1 601 274 759 €1 361 083 545 € - ERDF (85%)240 191 214 € - national co-financing (15%)

www.bgregio.euwww.mrrb.government.bg oprd@mrrb.government.bg

Approved by EC05. 11. 2007

Approved by EC05. 11. 2007

PRIORITY AXIS

SUSTAINABLE & INTEGRATED URBAN DEVELOPMENT SUSTAINABLE & INTEGRATED URBAN DEVELOPMENT 1

REGIONAL AND LOCAL ACCESSIBILITY REGIONAL AND LOCAL ACCESSIBILITY 2

SUSTAINABLE TOURISM DEVELOPMENT SUSTAINABLE TOURISM DEVELOPMENT 3

LOCAL DEVELOPMENT AND CO-OPERATIONLOCAL DEVELOPMENT AND CO-OPERATION4

ТECHNICAL ASSISTANCEТECHNICAL ASSISTANCE5

218218

8989

5454

400400

839839

PRIORITY AXIS 1: SUSTAINABLE AND INTEGRATED URBAN DEVELOPMENT

713 207 777 € – ЕRDF (85%)125 860 196 € – co-financing (15%)839 067 973 € – total

ELIGIBLE MUNICIPALITIESMunicipalities in agglomeration areas (86)13% of the national territory; 53% of the population

OPERATION 1.1: SOCIAL INFRASTRUCTURE – 33%

OPERATION 1.2: HOUSING – 5%

OPERATION 1.3: ORGANISATION OF ECONOMIC ACTIVITIES – 15%

OPERATION 1.4: IMPROVEMENT OF PHYSICAL ENVIRONMENT AND RISK PREVENTION – 28%

OPERATION 1.5: SUSTAINABLE URBAN TRANSPORT SYSTEMS – 19%

52,40%52,40%

PRIORITY AXIS 2: REGIONAL AND LOCAL ACCESSIBILITY

340 270 886 € – ЕFRD 60 047 803 € – co-financing400 318 690 € – total

ELIGIBLE MUNICIPALITIESAll municipalities in Bulgaria (264)

OPERATION 2.1: REGIONAL AND LOCAL ROAD INFRASTRUCTURE – 80 %

OPERATION 2.2: ICT NETWORK – 5 %

OPERATION 2.3: ACCESS TO SUSTAINABLE AND EFFICIENT ENERGY RESOURCES – 15%

25%25%

The objective of this priority axis is to enhance the quality of living and working environment with better access and new opportunities for increased regional competitiveness and sustainable development. This will be achieved through developing infrastructure related to transport, communication, information and gas networks enhancement.

Tourism is perceived as one of the priority sectors of Bulgarian economy. Its potential is demonstrated by its contribution to GDP, export and foreign exchange receipts as well as job creation. However the extreme territorial concentration combined with product uniformity and gaps in destination marketing are reducing the chances to sustain the recent growth in mid- and long term, while the existing development creates significant environmental, social and economic risks for already overdeveloped resorts.

PRIORITY AXIS 3: SUSTAINABLE TOURISM DEVELOPMENT

204 162 532 € – ЕFRD 36 028 682 € – co-financing240 191 214 € – total

OPERATION 3.1. ENHANCEMENT OF TOURISM ATTRACTIONS AND RELATED INFRASTRUCTURE

OPERATION 3.2. REGIONAL TOURISM PRODUCT DEVELOPMENT AND MARKETING OF DESTINATIONS

OPERATION 3.3. NATIONAL TOURIST MARKETING

13,6%

PRIORITY AXIS 4: LOCAL DEVELOPMENT AND CO-OPERATION

108 886 684 € – ERDF 19 215 297 € – cofinancing128 101 981 € – total

ELIGIBLE MUNICIPALITIES – 178This priority is designed to contribute to local and inter-regional development. Its primary feature is to establish and support investment initiatives with typical local ownership, being formulated at local level by local actors and developed in a flexible manner to provide solutions for specific local problems.

OPERATION 4.1: SMALL-SCALE LOCAL INVESTMENTS

OPERATION 4.2: INTER-REGIONAL COOPERATION

5,6%5,6%

OPERATIONAL PROGRAMM “ENVIRONMENT 2007 - 2013”

To improve the quality of life of the population in the country through ensuring healthy and favorable environment and to preserve the rich natural heritage on the basis of sustainable development of the country. Protection and improvement of the condition of water resources; Improvement of waste management and soil protection; Preservation of biodiversity and nature protection;

КФЕФРРКФ

ЕФРР

TOTAL BUDGET1800000000 € 1466000000 € - CF (1027000000) ERDF (439000000)334000000 € national co-financing

TOTAL BUDGET1800000000 € 1466000000 € - CF (1027000000) ERDF (439000000)334000000 € national co-financing

www.moew.government.bg

Approved by EC07. 11. 2007

Approved by EC07. 11. 2007

ope@moew.government.bg

Priority axis 1:– 71,3% Priority axis 1:– 22,4% Priority axis 1:– 5,8% Priority axis 1:– 2,5%

Priority axis 1: Improvement and development of water and wastewater infrastructure in settlements with over 2000 PE and in settlements below 2000 PE within urban agglomeration areas.

Priority axis 2: Improvement and development of waste treatment infrastructure

Priority axis 3: Preservation and restoration of biodiversity Priority axis 4: Technical Assistance

OPERATIONAL PROGRAMM “ENVIRONMENT 2007 - 2013”

PRIORITY AXIS 1,800,748,087 еuro

RURAL DEVELOPMENT PROGRAMME (2007-2013)

The National Strategy Plan for Rural Development of Bulgaria defines the following overall objectives for the period 2007-2013:

To develop a competitive and innovation based agriculture, forestry and food processing industry.

To protect the natural resources and environment of rural areas. To improve the quality of life and diversify job opportunities in rural areas.These objectives are addressed by specific measures of the four axes of the RDP.

ЕAFRDЕAFRD

BUDGET 2007 - 2013 3 233 743 096 €2 602 576 108 € EAFRD 631 166 988 € national co-financing

BUDGET 2007 - 2013 3 233 743 096 €2 602 576 108 € EAFRD 631 166 988 € national co-financing

www.mzgar.government.bg

GOALS

GOAL 1 – 42%Increasing the competitiveness of agriculture, forestry andthe food processing industry.

GOAL 2 – 27%Development of agricultural methodsconsistent with the protection and preservation of the environment, and on compensating theproducers in the mountainous and other less favoured areas for keeping their land in goodcondition, and preventing the abandonment of land in these areas

GOAL 3 – 31% Improving the quality of life and diversification of job opportunities in the rural areas of Bulgaria

“LIDER” APPROACH – 2,5% of each goalTo build a sustainable capacity at local level for rural development policy design, implementation, monitoring and evaluation

CBC PROGRAMM BULGARIA - SERBIA

The total population of the programme eligible area is 3.3 million people. With exception of the Sofia city, the demographic situation and development of the border area is characterized by a continuous tendency of decreasing birth rates and aging population, which coupled with significant outer migration, leads to a general trend of depopulation.

The border area between Bulgarian and Serbia is characterized by wide geographical and environmental diversity. The border area’s geographical location in the centre of the Balkan Peninsula is its strongest asset, since the European transport corridors 7(Danube river), and 10 cross the territory of both Serbian and Bulgarian part and corridors 4 and 8 cross Bulgarian part of the eligible territory.

STRATEGIC OBJECTIVESOVERALL OBJECTIVE:

To strengthen territorial cohesion of the Bulgarian–Serbian cross-border region, its competitiveness and sustainability of its development through co-operation in the economic, social and environmental area over the administrative borders.

SPECIFIC OBJECTIVES: 1. To bolster the infrastructure enabling social and economic development and improvement of the environment on both sides of the border, through improving access to transport, information and communication services, and cross-border systems for utilities and environmental protection.2. To increase economic synergy in the region and improve the capacity to jointly make use of common regional potential for improving regional well being, through developing policy and social networks, a sound framework for (cross-border) business support, collaborations in particular sectors such as culture, tourism, research and development, environmental protection and education, an active exchange of best practices, and joint regionalplanning and the preparation of the region’s economic sector for participation in the joint EU market.3. To promote the principles of sustainable development of the cross-border region in all matters pertaining to increased mutual understanding and respect, through developing successful models of cooperation, on the business, local stakeholder and policy levels in key priority areas..

PRIORITIES AND MEASURES

Priority Axis1: Development of small-scale infrastructure1.1. Physical and information infrastructure1.2. Infrastructure concerning environmental issues 1.3. Assistance for project preparation

Priority Axis 2: Enhancing capacity for joint planning, problem solving and development2.1. Links and networking on institutional, business and educational levels2.2. Sustainable development through efficient utilization of regional resources2.3. People to people actions

Priority Axis 3: Technical assistance3.1: Overall administration and evaluation of the Programme3.2: Publicity and communication

Main target groups: Local and regional authorities Regional structures of the central administration Nature parks administrations Business support organizations Euro-regions Research Institutes, Universities, Schools, libraries, community centers, cultural institutions etc. NGOs Associations of the above organizations

IMPLEMENTATION MONITORING AND AUDITS INTERMEDIATE REPORTS & PAVEMENTS FINAL REPORT & PAVEMENT

PROJECT FINANCING

MAMAGING AUTHORITYMAMAGING AUTHORITY

CALL FOR PROPOSALSCALL FOR PROPOSALSBENEFICIENTSBENEFICIENTS

1. PRESENTING PROPOSAL TO INTERMIDIATE BODY2. EVALUATION OF THE PROPOSAL3. CONTRACTING WITH MANAGING AUTHORITY4. ADVANCE PAVEMENT

TENDER PROCEDURE AND CONTRACTING WITH

IMPLEMENTING AGENCY

CHALLENGES FACED BY LOCAL AUTHORITIES

Institutional capacity Administrative capacity Programming capacity Project preparation Partnership Co-operation Public involvement Information exchange

“THREE HATS” OF THE MUNICIPALITY

1

2

3

1 – BENEFICIENT;

2 – PARTNER;

3 – USER, TARGET GROUP;

LOCAL AUTHORITY

?PROJECTSPROJECTS

6,8 billions for structural activities

ChallengesChallenges