training programme on procurement for end recipients

This project is co-financed by the European Union and the Republic of Turkey

REPUBLIC OF TURKEYMINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY

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Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım

Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey

Trainer: Aslı GülgörProcurement of Contract Management Non Key Expert



IPA system/structure

Where to start ?



Overall EU Strategic framework

EU 2020 strategy (follow up Lisbon Agenda )

to alleviate poverty to increase competitiveness, innovation and R&D to create more and better jobs (knowledge economy) to stimulate resources efficiency (sustainability)

Specific targets for 2020:

75 % of the population aged 20-64 in EU should be employed 3% of the EU's GDP should be invested in R&D share of early school leavers should be under 10% and at least 40%

of the younger generation should have a tertiary degree



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EU Cohesion Policies

Instrument for Pre Accession (IPA) in Turkey



1. Improve cohesion: decrease economic and social disparities in EU2. Increase competitiveness and environmental sustainability3. Facilitate integration of member states

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IPAInstrument for pre-accession

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Instrument for Pre-Accession (IPA)Assistance for candidate and potential candidate countries for EU membership

Replaces: Phare, ISPA, CARDS, SAPARD, Pre-Acession Fund for Turkey

IPA aims to support candidate countries:

In policy development in the cohesion policy areas and transitional and institutional buildingIn preparing countries to effectively implement and manage the Community’s Cohesion Policy (Structural Funds)Prepare the candidate countries for the programming, implementation and management of EU Cohesion Policies



IPA Instrument for Pre-accession Assistance

New generation pre-accession instrument – simplified: replaces 5 former pre-accession

instruments – flexible: tailor made assistance for progressive

alignment with standards and policies of the EU

Legal BasisIPA Council Regulation (No 1085/2006 of 17 July

2006) established IPAIPA Commission Implementing Regulation (No

718/2007 of 12 June 2007) spells in detail the implementation process



Scope of IPAWestern Balkans and Turkey

– in other words

Potential candidates: Albania, Bosnia and Herzegovina, Montenegro, Serbia and Kosovo under UNSCR1244/99

Candidates: Croatia, Turkey and the former Yugoslav Republic of Macedonia

Lifetime: 2007 – 2013

Budget: 11.5 billion euro

5 Components that replace 5 Instruments: Phare, CARDS, ISPA, Sapard and Turkey pre-accession assistance



Assistance for candidate and potential candidate countries for EU membershipIPA aims to support candidate countries:

In policy development in the cohesion policy areas and transitional and institutional buildingIn preparing countries to effectively implement and manage the Community’s Cohesion Policy (Structural Funds)Prepare the candidate countries for the programming, implementation and management of EU Cohesion Policies3 IPA Regulations: Establishment of IPA, IPA impl. Regulation and amending regulation (see website DG Enlargement: www.ec.europa.eu/enlargement/index_en.htm )

Instrument for Pre-Accession (IPA)



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IPA Pre-Accession Assistance 2007-2012 under Multi-annual Institutional Financial Framework

Country 2007 2008 2009 2010 2011 2012 Sum Pop Per capMillion euro Mln Euro

Croatia 141 146 151 154 157 160 910 4,4 205FYROM 59 70 82 92 99 106 507 2,0 249Turkey 497 539 566 654 782 900 3937 72,5 54Albania 61 71 81 93 95 97 498 3,2 158Bosnia and Herzeg62 75 89 106 108 110 550 3,8 143Montenegro 31 33 33 34 35 35 201 0,6 323Serbia 190 191 195 199 203 207 1184 7,4 159Kosovo 68 125 66 67 69 70 465 2,1 225Multi-beneficiary 109 141 160 158 161 164 892Total 1218 1389 1424 1557 1708 1849 9146 96 95



Managing structures should anticipate future management bodies under the Structural and Cohesion Funds

Structures should be set up at national level

Implementation of multi-annual programmes

Shift towards decentralized management (from DIS to EDIS accreditation); similar to shared management under cohesion instruments

Wide eligibility scope, closer to cohesion instruments

but: it is a pre-accession instrument

Key Principles of IPA



• EU max 85% contribution in eligible costs

• Other costs: national funds or other co-financing sources (local, private, NGOs)

In case of private sector investments• EU contribution lower than 85% • Specific rules for EU co-financing rate

in case of state aid or net revenues

Co-financing under IPA



• SCF and OPs approved by European Commission

• Turkey’s IPA Framework Agreement December 2008

• Signed financing agreements for all programmes (2009)

• Technical assistance on IPA started

• Project pipeline development in progress

• First projects in implementation

• Procurement and contracting to be shifted from CFCU to IPA centers for Comp. 3-5 in 2012

IPA in Turkey: current situation



Programming IPA: Scope

Components of IPA:

• I Transition Assistance and Institution Building;

• II Cross-Border Cooperation;• III Regional Development;• IV Human Resources

Development;• V Rural Development (IPARD)



Component Cross-Border: - Regional cross border programmes BG-TK, Greece TK

Comp. Regional Development: - OP Regional Competitiveness- OP Environment- OP Transport

Comp. HR: - OP Human Resource Development

Comp. Rural Development: - Rural Development Plan

Operational Programmes for IPA Turkey



Component Cross-Border: - Regional cross border programmes BG-TK, Greece-TK

Comp. Regional Development: - OP Regional Competitiveness- OP Environment- OP Transport

Comp. HR: - OP Human Resource Development

Comp. Rural Development: - Rural Development Plan

Operational Programmes for IPA Turkey



Component I: Institutional Building

Beneficiaries: Public bodies and NGOs to finance capacity and institutional building

Forms of assistance are e.g. :– Twinning, Twinning light, TAIEX

– Investments in the regulatory infrastructure to support alignment with the EU norms and standards

– Grant schemes (in Turkey: civil society, communications; see EU Delegation website)

– Implementation of finance facilities in co-operation with IFIs



Component II: Cross-Border Cooperation

Beneficiaries: Public bodies, NGOs Scope:•Transnational cooperation (Bulgaria, Greece)•Interregional cooperation•Investment and institutional building

•Eligibility of actions: ERDF Regulation Article 21 of Council Regulation (EC) No 1083/2006 of 11 July 2006



Component III: Regional Development

Scope of actions consistent with eligibility Cohesion Fund and ERDF regulations

Transport infrastructure: TEN-T rail and roads and connecting infra, sustainable and urban transport, multi-modal programmes, maritime, communication

Environment projects: waste management, drinking water, waste water, air quality, nature preservation, energy efficiency, renewable energy and sustainable urban transport projects

Regional Competitiveness: regional infrastructure, tourism, industrial parks, innovation and SME development, urban development, health and social facilities



OP Transport Priorities

1. Improvement of railway infrastructure in TEN-T Corridors

- High speed rail Istanbul-Bulgaria, Ankara-Konya- Upgrading and electrification of railways

2. Upgrading port infrastructure - Fylios, Mersin, Çandarlı, Blacksea ports

3. Technical assistance- Project preparation, capacity building



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Transport (IPA III): Transport (IPA III): CoreCore NetworkNetwork



OP Environment Priorities

1. Improved water supply, sewerage and waste water treatment services

- Waste water treatment Erzurum, Kırşehir, etc.

2. Improved integrated solid waste management- Solid waste Balıkesir, Kayseri, Çorum,

Konya, etc.

3. Technical assistance- Project pipeline preparation, feasibility, etc.



OP Regional Competitiveness Priorities

Central and Eastern Nuts 2 Regions in Turkey are eligible!!

1 Improvement of Business Environment- Business infrastructure, financing

instruments, tourism and innovation2 Strengthening of enterprise capacity and

foster entrepreneurship - Support to SMEs and innovation3 Technical assistance



2020

Regional Regional CompetitvenessCompetitiveness (IPA III):(IPA III):GeographicalGeographical cconcentrationoncentration



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RCOP Budget

Table X RCOP 2007 – 2011 total budgets (including national co-financing) and estimations 2012-2013 (in million Euros)

RCOP 2007 2008 2009 2010 2011 2007-2011 2012-

2013

2007-

2013

Priority 1 Business environment 36,5 37,9 47,7 80,1 98,5 300,7

Priority 2 Enterprise capacity and

entrepreneurship

9,9 10,2 12,9 2,2 2,3 37,5

Priority 3 Technical Assistance 3,0 3,0 3,9 1,7 2,7 14,3

Totals 49,3 51,1 64,5 84,0 103,5 352,5 223,7 * 576,2* * Estimation for 2012-2013 based on the MIFF and 33% share of RCOP in Component 3.

-1st package projects procurement state- 2nd project package 43 projects preparation- Projects to be created for 300 million euro 2011-2013 budget



Scope of actions consistent with eligibility ESF and ESF regulations

1. To attract and retain more people in employment (women, young people, improvement of employment services of ISKUR)

2. To enhance investment in human capital by increasing the quality of education

3. To increase adaptability of workers, enterprises and entrepreneurs

Component IV: OP Human Resource Development



1. Improving market efficiency and implementation of community standards

- Investments in farms & products, marketing and infrastructure

2. Preparatory actions for implementation of the agri-environmental measures and Leader - Environmental measures and community init.

3. Development of the rural economy- Rural infra, diversification activities, training, TA

Component V: OP Rural Development (IPARD) Priorities



Management Types



IPA - management types

Decentralised Management: tendering and contracting - the beneficiary country

Centralised Management: tendering and contracting - the Commission/EC Delegation

Shared Management: only for Component II, CBC programmes between beneficiary countries and their MS neighbours

Joint Management: certain implementing tasks are delegated to International Organisations



DIS ex-ante

Under a Decentralised system of management of EU assistance with ex-ante control, the Contracting Authority is an institution assigned to be so in the national administration. All steps of all transactions / decisions concerning the procurement and award of contracts are taken by the Contracting Authority and referred to the EUD for approval.

Transactions / decisions related to financial and administrative management [e.g. payment to contractors, accounting] are not submitted to the EUD prior to execution



DIS ex-post

Under a Decentralised system of management of EU assistance without ex-ante control, the Contracting Authority is an institution assigned to be so in the Turkish Administration. All steps of all transactions / decisions concerning the procurement and award of contracts are taken by the Contracting Authority and are not referred to the EU Delegation for approval.

Transactions / decisions related to financial and administrative management [e.g. payment to contractors, accounting] are not submitted to the EUD prior to execution.

For PHARE and ISPA, the system used to be referred to as EDIS, Extended Decentralised Implementation System

Apart from exceptions to the standard procedures given in the Practical Guide



Shared Management

Shared management may be used under the cross-border co-operation component, for cross-border programmes involving Member States. That method shall apply, in principle, for joint operational programmes for cross-border cooperation implemented by a joint managing authority under the regulation establishing a European Neighbourhood and Partnership Instrument.

Under shared management with a Member State, implementation tasks shall be delegated to Member States in accordance with Art. 53b of the Financial Regulation. In such a case, the procurement rules to be applied shall be those contemplated in the implementing rules laying down specific provisions for the implementation of the cross-border cooperation. Similarly, the IPA provides for this option under the conditions as defined in the regulatory framework of IPA Regulation n° 1638/2006 of 24.10.2006



Joint ManagementJoint Management (with international organisations). Joint management may be used under the transition assistance and institution building component, in particular for regional and horizontal programmes, for programmes involving international organisations. Certain implementation tasks may be delegated by the EC to international organisations, in accordance with the implementing rules, in the following cases:

(a) wherever the Commission and the international organisation are bound by a long-term framework agreement laying down the administrative and financial arrangements for their cooperation;(b) wherever the Commission and the international organisation elaborate a joint project or programme;(c) where the funds of several donors are pooled and are not earmarked for specific items or categories of expenditure, that is to say, in the case of multi-donor actions.



DIS Management TR LEGAL FRAMEWORKPrime Ministerial Circular, No. 2001/41MoU on the Establishment of CFCU and MoU on the

Establishment NFsigned on 14 February 2002, approved by the Parliament

(Law No. 4802)and published on 30 January 2003.The MoU for NF was amended by Law No. 5167.The MoU for CFCU was amended by Law No. 5500.Framework Agreement (adopted by Law No. 5303), and

Council ofMinisters Decree No. 2005/8636This system was accredited by the European

Commission on 8 October2003 for projects other than grant schemes




Management Modes / Methods of Implementation

Potential candidate and candidate countries

AlbaniaBosnia and HerzegovinaCroatia FYROMIcelandKosovo under UNSCR nº 1244Serbia Montenegro Turkey

DCIS (IPA 1-2)DCIS (IPA 1-2)DIS – ex-anteDIS – ex-ante

DCIS (IPA 1-2)/JMDCIS (IPA 1-2) DCIS (IPA 1-2) DIS – ex-ante



Inter Institutional Chart



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• National IPA Co-ordinator [NIPAC]

• Strategic co-ordinator

• Competent Accrediting Officer [CAO]

• National Authorising Officer [NAO]

• A National Fund [NF]

• An Operating Structure [OS] (for each Component/Programme)

• Audit Authority [AA]

• End recipients – line ministry; water, rail or road company; regional waste operator; municipality; SME; farmer

Structures and authorities to be in place:



MIDP Community priorities

MIFF Budgetary framework

National Priorities (existing strategic planning documents, JIM, JAP)

Strategic Coherence Framework (SCF)coherence, concentration and coordination among programmes and priorities

Regional development component

Human resources component

OP Transport OP HRD

OP Reg Comp

OperationalProgrammeENV

Programming Framework IPA



The project pipeline process



Where are we now?



Questions and answers

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training programme on procurement for end recipients

Documents