European Union

Quick Impact Facility

Economic Development

in Croatia

This projectis funded by theEuropean Union

A projectimplemented byUNDP / UNOPS

In December 2000, the Council ofthe European Union adoptedRegulation EC - Nr 2666/2000 onassistance for Albania, Bosnia andHerzegovina, Croatia, the FederalRepublic of Yugoslavia and theFormer Yugoslav Republic ofMacedonia. This Regulationprovides for Community assistanceto support participation of therecipient countries in thestabilisation and associationprocess. Under theprogramme (“ ommunity

ssistance for econstruction,evelopment and tabilisation”),

the EC has decided to continue itsprevious support to the sustainablereturn and re-integration ofRefugees and Displaced Persons(DPs) in Croatia.

The CARDS programme is animportant contribution to supportthe Stability and AssociationAgreement (SAA), which is clearly apriority for both the EC and theCroatian Government.

This objective can be achievednotably through the enhancementof the existing EU funded integratedreturn programme in Croatia,including projects in the economicsector such as the

The aim of the QIFCARDSprogramme, is to generate higherincome levels and employment inthe war-affected areas of Croatia,mainly (but not exclusively) by

CARDS

Quick Impact

Facility (QIF)

CA RD S supporting the micro and small

enterprise sector. To reach thismain objective, activities in thefollowing areas are carried out:

(a) Assistance to the vulnerablereturnee families, those whocannot access normal creditlines, for income-generationactivities;

(b) Support to family farming, craftsand SMEs through creditschemes (Guarantee Funds),including training and technicaladvice to entrepreneurs;

(c) Capacity-building activities forlocal organizations, such as themunicipalities, the LocalEconomic DevelopmentAgencies (LEDAs) and otherlocal stakeholders which, on thelong term, will continue toprovide support for theeconomic development of theregions;

(d) Support to regionaldevelopment initiatives, such asorganic food production andrural tourism;

(e) Support to AgriculturalCooperatives in terms of credit,marketing, joint ventures andtraining; and

(f) Support to RegionalDevelopment Planning localcapacities, by preparingRegional OperationalProgrammes (ROPs) accordingto EU standards.

The QIF Croatia programme isimplemented by UNDP/UNOPS(United Nations DevelopmentProgramme / United Nations Officefor Project Services) with thetechnical support of theInternational Labour Organization(ILO) and the services of the UnitedNations Volunteers (UNV)programme

WHAT IS THE QUICK IMPACT FACILITY (QIF) ?

UNOPS

The areas where the programme isoperational includes local andspecially returnee population whichis particularly vulnerable: elderlypeople, women-headedhouseholds, disabled persons,unemployed returnee families withchildren and no income at all. Byproviding them basic agricultural orlivestock support, the program cangreatly contribute to increase theirincome (at least 40%) and long-term self-sufficiency.

Seventeen different start-uppackages have been designed.These packages may include moto-cultivators, agricultural tools andequipment, greenhouses, livestock

(cows, pregnant pigs, sheep, goats,chicken) and other agriculturalproduction inputs.

As of September 2003, 4.928families had been visited andscreened in the five regions wherethe programme operates. Start-uppackages have been distributed to1.996 of them (Lika 374, Dalmatia508, Banovina 366, Western Slavonia392, and Eastern Slavonia 356).

Concerning the vulnerabilitycategory, the distribution is thefollowing: low-income families(59%); elderly people (26%);women-headed household (7%)and disabled (8%).

START-UP PACKAGES FOR THE VULNERABLE FAMILIES

PROGRAMME COMPONENTS

FeedbackWestern Slavonia - Credit foran Agricultural Business

Our family was first included in the UNDP-UNOPS Start-Up Packages program. Wereceived some equipment and started tofabricate milk products. In June 2000, we alsoreceived a credit to buy cows and to repair thestables, so that we could expand our milkproduction. We started only with five cows,and sold the production to the local dairy. Weplan to take another credit for mechanizationand to buy more cows, in order to improve ourbusiness and have more income for the family.

UNDP-UNOPS and EU supported us in theworst period of our life. Thanks to them andtheir programs, we are able to secure anincome for our family.

The Dole`al family (Pakrac)

26%18%18%20%18%

159

120

519

1198

UNOPS

accepted by the banking system willbe considered the credit’s basicguarantee. In such a case, theprogramme’s Fund will offer anadditional fiduciary guarantee toreach the standard level normallyrequired by the bank to its clients.Subsidiary means that the firstguarantees to be affected - under the

regular procedures of the bank- arethe ones owned by the borrower.

The actual “leverage level” given bythe banks is one to one. For eachEuro the programme deposits intoeach Guarantee Fund, thecorresponding Bank adds one Eurofrom its own resources.

CREDIT SCHEMES:

THE GUARANTEE

FUNDS

PROGRAMME COMPONENTS

UNDP/UNOPS and ILO, with QIF andprevious EU funding, have signedeleven Guarantee Fund agreementswith the Croatian Banking System, toprovide credit for agriculture,livestock, family crafts, agriculturalcooperatives, and SMEs (micro andsmall enterprises). The total amountavailable for credit is Euros 11 million.The programme normally guaranteesup to 50% of each single operation /credit; but, in the case of SMEs, thispercentage may, in exceptionalcases, go up to 70%.

Although all credits are approved bythe banks, and disbursed with theirown resources, the programmeensures the risk of any individual loanthrough the Guarantee Fund, but interms of a complementary andsubsidiary fund. The termsComplementary and Subsidiary (orauxiliary) are crucial in order not tolessen the personal responsibility ofthe borrowers on their financialobligations. Complementary meansthat either their personal assets(including those to be bought withthe loan) or their financial guarantors

GUARANTEEFUNDSFORAGRICULTURE,LIVESTOCKANDFAMILYCRAFTS(RETAIL)

PERFORMANCE OF THE RETAIL GUARANTEE FUNDS

Maximumamountper loan:Euros8.000

YEAR NETAMOUNT OF THE BANK REGION NR LOANS AMOUNTSTARTED GUARANTEE APPROVED LOANS

FUND (Euros) 30/11/2003 (In Euros)1998 455.000 JADRANSKA [IBENIK 334 1.309.9781999 476.000 JADRANSKA KNIN/LIKA(*) 207 990.3071999 535.000 PO@E[KA W. SLAVONIA 366 1.224.6962000 480.000 NOVA BANOVINA 195 956.4142001 480.000 CROATIA E. SLAVONIA 468 1.344.565

2.426.000 1.570 5.825.960LOANS EUROS

(*) Covers two regions: Knin and Lika

(March 1998 - November 2003)

REGION BANK NR LOANS AMOUNT APPROVED DEFAULT PAYMENT (1)[IBENIK JADRANSKA 334 1.309.978 16,40%KNIN (*) JADRANSKA 151 714.077 15,46%LIKA (*) JADRANSKA 56 276.230 10,19%BANOVINA NOVA 195 956.414 4,65%W. SLAVONIA POZESKA 366 1.224.696 5,79%E. SLAVONIA CROATIA 468 1.344.565 3,35%TOTAL 1.570 5.825.960

UNOPS

IMPACT OF THE

SMALL LOANS

SCHEME (RETAILBANKING)

PROGRAMME COMPONENTS

Although it is difficult to preciseexactly the results of each loan, thefollowing global outputs should bementioned:

According to the QIF technicalguidelines (Regional RehabilitationProgrammes of Šibenik, Knin andWestern Slavonia – “SettlementPattern”), the average yearly incomeper family generated by the selectedcrops or by one of the 8 farmingmodels would oscillate betweenEuros 4.200 and Euros 5.600. If all the1.570 credits could be considered assuccessful, the total yearly incomegenerated by the credit systemwould vary between Euros 6.594.000and Euros 8.792.000.

In terms of employment, andassuming that every credit wouldprovide 1,0 full-time employment foragriculture and livestock and 3 foreach Family Business, this means thatthe credit system would already haveprovided more than 1.800 full-timeemployments

.A qualitative impact – which is verydifficult to prove, but still is present – isthat a certain percentage (estimatedin between 30 to 40%) of thedisplaced / returnee families whoreceived a credit would most probablyhave left again the region if they hadnot been given the opportunity ofstarting an income-generation activity.

CORPORATEBANKING-Maximumamountper loan:Euros70.000

YEAR CUR AMOUNTOFTHE BANK REGION NR LOANS AMOUNTSTARTED GUARANTFUND APPROVED LOANS

30/11/003 (EUROS)APR2002 EUR 600.000 JADRANSKA [IBENIK 37 862.100APR2002 EUR 600.000 POZEZKA W.SLAVON 27 869.900APR2002 EUR 400.000 NOVA BANOVINA 15 334.400SEP2002 EUR 500.000 CROATIA E.SLAVON 37 1.021.600SEP2002 EUR 700.000 CROATIA ZADAR 49 1.433.500MAR2003 EUR 300.000 CROATIA LIKA 02 95.000

3.100.000 167 LOANS 4.616.500EUROS

GUARANTEEFUNDSFORSMEs

PRESS

VE^ERNJI LIST • 31st January, 2002.Guarantee Fund is available to the Po`e{ko -Slavonska County EntrepreneursWITH THE HELP OF THE EMPLOYMENTSERVICE FOR THE STARTERS

In the future, international organizations will paymore attention to economic developmentrather than to humanitarian aid.

With the support of the LEDA (Local EconomicDevelopment Agency) of Oku~ani, as from the1st of February, all entrepreneurs of Po`e{ko-Slavonska County, will have access to theGuarantee Fund. The European Commissionhas established that Fund to support allentrepreneurs, especially the starters.

Mr Davor Ilija{i}, LEDA’s Executive Director,informed the media about all detailsconcerning the new Guarantee Fund of theEuropean Commission. The Guarantee Fund isa well-known model to support investmentsrelated to the improvement of small andmedium enterprises. Mr Ilija{i} said that theLEDA will provide all assistance for potentialentrepreneurs. The business plans,communication with banks and all technicalassistance will be provided by the LEDA. Incooperation with Po`ega’s CroatianEmployment Service, a training and promotioncampaign will be carried out to improve thesmall and medium enterprises sector in theCounty.

In the new Guarantee Fund, the potentialentrepreneurs will have to present 75% ofcollaterals, instead of the 120 to 250% which isusually requested by the banks. Based on theprevious positive experience, Po`eska Bankahas been chosen as a partner by the theEuropean Commission for the new project.

UNOPS

With the technical support of theInternational Labour Organization(ILO) four Local EconomicDevelopment Agencies (LEDAs) havebeen established in Croatia: EastSlavonia, West Slavonia, Banovinaand Dalmatia. These four LEDAs arefully operational and legally registered.

The main objectives of a LEDA can besummarized as follows:

1 - Informing the county (region) onthe existing entrepreneurialopportunities and the access tofinancial and technical support

2 - Supporting the promotion of theregion by preparing and promotingregional development initiatives, aswell as by channeling financial andtechnical resources that willcontribute to the development ofthe local economy in the regions

3 - Assessing and valuing the localresources, in order to promotesustainable entrepreneurialactivities and create a favorableclimate for business development

4 - Assisting SME in theirdevelopment, either directly(through the Guarantee Funds) orby helping selecting the rightsupport institutions for them

5 - Supporting and stimulatinginnovations, introducing newtechnologies and products to thelocal markets

It is through these activities, that theLEDAs promotes themselves as atechnical instrument for the territorywhere information, documentation,contacts and qualified technical andfinancial assistance can be found andwill be delivered.

On the basis of the above- mentionedpoints, the performance of thedifferent LEDAs is analyzed. Theanalysis is focused on the followingitems, reflecting the main activities ofthe LEDA:

1 - Regional Development Initiatives2 - Business planning and counseling3 - Credits approved for SMEs or

Cooperatives4 - Training to entrepreneurs and

business starter5 - Relation with local authorities an

other institutions6 - Resource mobilization7 - Promotion and marketing

Besides these four LEDAs, the QIFprogramme has operationalagreements with the Center forEntreprises (CFE) of Osijek and theCenter for Technology Research(CTR) of Slavonski Brod, who provide

Business Development Services(BDS) in those regions not coveredby the LEDAs. Under the CARDS2001, an agreement has recentlybeen reached with the Zadar Centerfor SMEs, increasing to seven (7) theBusiness Development Serviceproviders linked to the QIFprogramme.

The sustainability of these public-private initiatives is a critical issue.Therefore, the QIF programme hasestablished a decreasing scale offinancial support for the operationalcosts of the LEDAs: 100% in the first 2years, 75% in the third, 50% in thefourth and 25% in the fifth. Otheractual sources of income for theexisting LEDAs are: the Ministry ofSMEs, the Counties, otherinternational donors (Canada, SorosFoundation, Mercycorps/USAID),the fees paid by entrepreneurs for thepreparation of the business plans;and, in the future, the interest paid bythe Banks to the Guarantee Funds(fixed-term deposit), once theirproperty will be transferred by QIF tothe LEDAs.

CAPACITY-BUILDING: LOCAL ECONOMIC

DEVELOPMENT AGENCIES (LEDAS)

PROGRAMME COMPONENTS

UNOPS

UNDP/UNOPS and LEDA Krka,under the QIF programme haveprepared two regional studies on theproduction of Eco-Food and RuralTourism. The studies have beenpublished and officially presented tothe public in April 2002.. The studiesnot only provide good insideinformation in the potential ofecological agriculture and ruraltourism in Croatia, but will alsofunction as a framework for futurecredits that will be disbursed in thecontext of the new Guarantee Funds.

Another regional initiative has beenstarted in Vukovar County, where theQIF supported EntrepreneurshipCenter has started a program aimedat creating a cluster of woodworkers

in the County. The objective is to joinindividual production capacities inorder to meet the requirements of themarket. Vinkovci area has a longtradition in woodworking and a bignumber of small and medium privatefirms operate in this sector. A similarproject is under study for the buildingindustry. Both programs count withthe financial support of the Ministryfor SME.

A pilot project has been started inJanuary 2002, involving a reducednumber of only 12 farmers. As thepilot phase proved to be successful,the project will involve 45 farmers in2003.

Organic Food Production

REGIONAL DEVELOPMENT INITIATIVES

PROGRAMME COMPONENTS

Organic fertilizers, seeds andprotection materials were distributedto the farmers on a “recoverableadvance” modus. An agriculturalcooperative and an association oforganic food producers, both calledEko-Dalmacija, have been legallyestablished.

In 2002, an agreement was signedwith Naturland Deutschland to providetraining to the UNDP/UNOPS staff andto the farmers.

• A Controller’s Training course washeld in Munchen, Germany, from the15th to the 19th of April 2002. FourUNDP/UNOPS staff attended thecourse.

• A Farmer’s Training course was heldin Dverske, Knin, from the 19th to the27th of April 2002. Two teachersfrom Naturland gave the course,which was attended by 25 farmers.

• A Farmer’s training course on“organic production ingreenhouses” was also held inDecember 2002 in [ibenik.

In 2002, an agreement was alsosigned with IMO (Institut furMarketologie) Switzerland for theInspection and Certification of thefarmers. After the field inspection, IMOcertified, in June 2002, that most of theagricultural production of the farmersis in accordance with the definedorganic production methods; and thatEko-Dalmacija is entitled to processand market those organic productscertified by IMO, in compliance withEEC Regulation N0 2092/91. The part

UNOPS

of the production that was not certifiedby IMO was sold by Eko-Dalmacija as“conventional” production.

Based on the IMO inspection, a sub-license agreement between Eko-Dalmacija an Naturland Deutshland,to use the Naturland Trade Mark inCroatia, has been approved, for thoseproducts certified by IMO Switzerland.

The Municipality Kistanje hasprovided facilities for free to Eko-Dalmacija to establish in Varivode apacking facility. The building, partiallydestroyed during the war, wasrepaired; Eko-Dalmacija, with EUfunding, bought packing equipmentand a small truck for distribution. Fourpeople have been employed by theAssociation.

As of the end of November 2002, Eko-Dalmacija has produced and sold 118tons of organic food, includingpotatoes, carrots, onion, tomatoes,paprika, eggplant, cucumber,broccoli, cabbage, coliflower andpotbeans.

In April 2003, a contract was signedbetween the Eko-DalmacijaCooperative and the prestigious firmSMS. The firm will buy and process,in its Split premises, 12 differentagricultural products from theCooperative. The Institut furMarketologie (IMO) of Switzerland,together with BIOPA Croatia, carriedout the inspections of the farms fromthe 22nd to the 27th of April 2003. Thefinal inspection report is expected bythe end of May 2003. If approved,Naturland Deutschland will certify theirproduction for the year 2003/2004.

PROGRAMME COMPONENTS

PRESS

VE^ERNJI LIST • 27th April, 2002.

UNDP AND NATURLAND HAVE PROVIDEDSUPPORT TO “EKO DALMACIJA”

\EVRSKE - The fertile land of KistanjskaBukovica that has been abandoned andneglected for decades, is going to be used inthe future for production of eco-food. Thedemand for that kind of food is growing both inour country and in the rest of the world. Theprogram is financially supported by theEuropean Union and UNDP (United NationsDevelopment Program). The technicalorientation for the development of eco-production was provided during a seminar forthe members of “Eko Dalmacija” association in\evrske. The seminar was held in “Biopharmd.o.o.” owned by dr. @eljko Krpan, one of theinitiators of eco-food production. Until nextautumn, “The eco-food production” program inKistanjska Bukovica will be based exclusively onthe cultivation of fruits and vegetables suitable tothe Dalmatian and Mediterranean climate. Bythe end of the year, as they have told us in“Biopharm” in \evrske, organic meat breedingwill be added to the production lines, includingthe raising of animals only on natural pastures.

Rural Tourism

A total number of 30 families havealready been pre-selected for creditpurposes. Ten (10) of them havealready been granted a credit throughthe EU funded Guarantee Fund forSMEs. The feasibility study carried outin 2001 shows that there are 11 non-traditional tourism activities that couldbe carried out in [ibenik-Knin County.

As of September 2003, the QIFprogramme has supported nineteen(19) rural tourism communityinfrastructure projects in [ibenik-KninCounty and four (4) in Zadar County.They include, for example, furniturefor the ethno-museum of Drni{, therevitalization of hiking / biking paths,the conclusion and equipment ofmountain refuges, the illumination ofnational heritage monuments andrural churches, and the co-funding ofa small documentary film on theDalmatian Pr{ut (smoked ham), thatwill help traditional farmers to promotetheir production in and outsideCroatia. More rural communities areapproaching the QIF programme forassistance, as the process of approvalis smooth and fast.

The kind of projects that QIF issupporting can be seen in thefollowing webpage:www.jurlinovidvori.com

UNOPS

PROGRAMME COMPONENTS

PRESS

GLAS SLAVONIJE • 15th May, 2002.THE CREDITS ARE GIVEN INTO THE RIGHT HANDS

VUKOVAR - 437 credits have been given to small family businesses and to agriculturalassociations in Eastern Slavonia, since 1998, with a total value of 1.772.000 EUR.

Those credit lines are part of the common program of UNDP-UNOPS, the EU Guarantee Fund, theJapanese Government and Croatia Banka. High-ranking officials and members involved in theexecution of that program - the Japanese ambassador in Croatia, Mr. Shojiro Imanishi; the directorof UNDP in Croatia, Mr. Cornelis Klein; the special delegate of EU, Mr. Florian Hauser; the prefect ofVukovarsko-Srijemska County, Mr. Nikola [afer; the president of Croatia Banka management board,Mr. Vedran Kui{; the Lovas municipality major, Mr. @eljko Cirba; and local officials of internationalorganizations, as well as representatives of associations of Lovas, Me|e, Negoslavci, Cezareja,Ila~a and Torda- were present both on the working meeting and on the visit to some smallentrepreneurs and the associations. In Petrovci, they visited a young upholster, Miroslav Pavkovi},who has improved the quality of his products using a new and modern machine that he bought, byusing a credit. In Novi Jankovci, high-ranking officials visited the pig farm owned by Mate Filkovac.He bought the production supplies from the credit. Besides fattening pigs (he produces the food forthem), he is also engaged in their reproduction, so he has built special boxes for pigs.During thevisit to fields of bear barley in Lovas, the bus that was driving the guests stuck into mud and inclined,but the tractor got it out, so the guests could finally enjoy the lunch in vineyard near the weekendcottage owned by the Lovas cooperative. They were entertained by the local tambura -players.

UNDP/UNOPS, with QIF and otherfunding, has been providingsupport, since 1999, to agriculturalcooperatives in Eastern Slavonia.More than 7.600 has of differentcrops have been cultivated by themas a result of the programme’sassistance.

SUPPORT TO AGRICULTURAL COOPERATIVES

CROP 1999-2000 2001 2002 2003 TOTAL(HAS)MAIZ 1.116 000 416 729 2.261SUNFLOWER 749 000 252 386 1.387SOYA 326 000 273 805 1.404LUZERNA 74 000 000 000 74BEERBARLEY 850 675 775 000 2.300SUGARBEAT 000 000 192 000 192TOTAL 3.115 675 1.908 1.920 7.618

Only during the last two agriculturalcampaigns (2002-2003), with EUfunding, credits have beenapproved for AgriculturalCooperatives in that region, thatbenefited 760 families, to grow 1.145has of corn, 1.387 has of sunflower,1.078 has of soya, and 775 has ofbeer barley. The total amount lent tothe Cooperatives in the last twoyears has been Euros 782.000. Inorder to approve the credits, threeconditions have to be met: (a) amarketing contract has to be signedfrom beforehand (b) crops have tobe insured with Croatia Osiguranjeand (c) the Cooperatives themselveshave to present collaterals of at least50% of the total loan

Using the ILO/MATCOM (Materialsand Techniques for CooperativeManagement Training)methodology, QIF is providingtraining to Cooperative managers ofCroatia, Bosnia and Serbia.

UNOPS

PROGRAMME COMPONENTS

QIF Croatia has recently establishedsix new Guarantee Funds with theCroatian Banking system, totalingEuros 6,2 million, to support the SMEsector in Lika, Dalmatia, Banovina,West and East Slavonia.

Following recommendations of theNetherlands Management CooperationProgramme (NMCP), the new fundsmay guarantee up to70% of eachsingle operation, and the maximumamount per firm is Euros 70.000. Thebusiness plans are being prepared bythe Local Economic DevelopmentAgencies (LEDAs) staff and presentedto the joint QIF-Bank credit boards.

Four different credit “lines” areavailable: (a) loans for existing SMEs;(b) for “de facto” but unregisteredfirms who wish to regularize theirsituation; (c) for real starters and (d)for working capital.

If you are a family willing to expand itsagricultural or livestock production, acraftsmen, a small entrepreneur(existing or a start-up), or a member ofan Agricultural Cooperative, youshould first check the following infoand then contact us.

CREDIT INFO BOX

CREDITS

FOR SMEs

REGION FAMILYLOANS SMEs AGRICULTURALCOOPERATIVES

[IBENIK-KNIN UNDP-UNOPSOFFICEKNIN LEDAKRKA LEDAKRKALIKA UNDP-UNOPSOFFICEKNIN ZADARCENTERFORSMES -----ZADAR ---- ZADARCENTERFORSMES -----BANOVINA UNDP-UNOPSOFFICE LEDASISAK -----

PETRINJAWESTERNSLAVONIA UNDP-UNOPSOFFICE LEDAOKUCANI -----

PAKRACEASTERNSLAVONIA UNDP-UNOPSOFFICE CMPVINKOVCICFEOSIJEK CMPVINKOVCI

VUKOVAR

FORMOREDETAILEDINFORMATION,PLEASECONTACTUS

(1)Formore informationonthemaximumamount perSME,pleasefindthefollowingtable:

Maximum Interest Maximum Interest Maximum Interest Maximum Interest70.000 6,5 40.000 6,5 40.000 6,5 10.000 8,5

(*) In the frameworkagreementbetweenQIF,HBORandtheLEDAs.

MAXIMUMLOANAMOUNTS (INEUROS)PERSME,ACCORDINGTOCATEGORY

ExistingFirmExistingFirm

incombinationwithHBOR (*)

UnregisteredFirm CompleteStart-UpWorkingCapital(ExistingFirm)

200.000

[IBENIK-KNIN JADRANSKA 8.000 6,5 70.000 6,5 70.000 6,5LIKA JADRANSKA 8.000 6,5 --- --- -- --LIKA CROATIA --- --- 70.000 6,5 -- --ZADAR CROATIA -- -- 70.000 6,5 -- --BANOVINA NOVA 8.000 8 70.000 6,5 -- --WESTERNSLAVONIA POZESKA 8.000 7 70.000 6,5 -- --EASTERNSLAVONIA CROATIA 8.000 8 70.000 6,5 70.000 6,5

REGION BANK FAMILYLOANS SMES(1) AGRICULTURAL.COOPERATIVE

MaximumAmount(Euros)

InterestRate

MaximumAmountEuros (1)

InterestRate (1)

MaximumAmountEuros

InterestRate

UNOPS

PROGRAMME COMPONENTS

The EU funded CARDS 2002-2004programme in the area of«Democratic Stabilisation» considerssustainable development in the waraffected areas a priority. Theprogramme will follow an approach toregional development, wherebyspecific local development projectswill be derived from a RegionalOperational Programme (ROP) in fourcounties: Zadar, [ibenik, Sisak andVukovar. From the ROP, a pipeline ofpriority projects, judged on theirimpact on the sustainability of return,will be developed.

The ROPs identify priority areas (oraxes) of intervention for several yearsto support partnerships for regionalgrowth and employment, such asArea Development (includinginfrastructure), EnterpriseDevelopment, Attraction of InwardInvestment and Human ResourceDevelopment.

UNDP/UNOPS has been entrusted bythe EU Delegation in Zagreb toprovide technical assistance to thefour Counties in the preparation of theROPs. However, the ownership of theROP development is with the relevantcounty authorities. Like in Ireland(Regional Assemblies), in Spain(Junta de Desarrollo), or in Portugal(Comissaos de Coordenacao dasRegiaos), the national and theregional public authorities have toplay a key role in the leadership of theROPs, because their regions and theirpopulations are the final and only

beneficiaries of the investments thatwill derive from the plans. Thecounty’s staff has to be thebackbone of the whole exercise.Nevertheless, regional policies andprogrammes can only be successfulif all concerned people accept themand contribute to implementingthem. This requires making peoplepart of policy development andimplementation and give them asense of partnership and co-ownership. Drafting ROP thereforeinevitably includes largeconsultation processes with varioussectors and interest groups.

Therefore, in order to ensure abroader spectrum of participation -and therefore a higher degree oflegitimacy- the private sector andthe civil society are also involved inthe preparation of the ROPs,through established mechanismsof consultation and discussion.

For the preparation of the projectpipeline, if very specific expertise isrequired that is not available inCroatia, funds have been available bythe EU to hire these highly-qualifiedforeign experts. In those exceptionalcases, they will provide technicalassistance to the Zupanijas to developa specific pipeline project proposal .

The regional operational programmesfor Zadar and [ibenik were concludedin September 2003; those for Sisakand Vukovar should be completed byApril 2004.

REGIONAL OPERATIONAL PROGRAMMES (ROPS)

UNOPS

ZAGREB OFFICE

Project Coordinator: Denis van DamAddress: Ilica 207 (zgrada A)Tel: 01-390-8894Tel/fax: 01-390-8897E-mail: unops.cro si.tel.hr

KNIN SUB-OFFICE:

E-mail: undp-unops-knin si.hinet.hrHead of the sub-office: Ton}i Lu~i}Tel/fax: 022/661-189Address: Gojka [u{ka 1322 300 Knin

PAKRAC SUB-OFFICE:

E-mail: undp-pakrac po.tel.hrContact person: Ivica Pavi~i}Tel/fax: 034/412-007Address: Matije Gupca 1634 550 Pakrac

PETRINJA SUB-OFFICE:

E-mail: undp-unops sk.hinet.hrContact person: Stjepan GalijanTel/fax: 044/815-931Address: Ka~i}a Mio{i}a 1244 0250 Petrinja

VUKOVAR SUB-OFFICE:

E-mail: undp-unops vk.hinet.hrContact person: Dra`en Mrkonji}Tel/fax: 032/881-985Address: Grani~arska 332 260 Gunja, Vukovar

@

@

@

@

@

LEDA Drni{

E-mail: lera-krka si.hinet.hrDirector: Josipa ^upi}Address: Trg Kulture 722 320 Drni{Tel: 022/888-306/307Tel/fax: 022/888-180

LEDA Oku~ani

E-mail: leda sb.hinet.hrDirector: Davor Ilija{i}Address: Stjepana Radi}a 135 430 Oku~aniTel: 035/372-700Tel/fax: 035/372-088

LEDA Sisak

E-mail: leda sk.hinet.hrDirector: Igor Filkovi}Address: Frane Lovri}a 244 000 SisakTel: 044/544-204/205Fax: 044/544-206

LEDA Vinkovci

E-mail: pc-vsz vk.hinet.hrDirector: Zvonimir ^orda{i}Address: Trg Vinkova~kih Jeseni 132 100 VinkovciTel: 032/339-993/339-996Fax: 032/339-997

@

@

@

@

Center for SME Osijek

E-mail: cfe os.tel.hrDirector: Boris LaucAddress: [etali{te kardinala F.[epera 13/2, 31 000 OsijekTel: 031/283-820Tel/fax: 031/283-623

Center for SME Zadar

E-mail: czp-zadar czp.hinet.hrDirector: Pave Ivi}Address: Bartola Ka{i}a 3/223 000 ZadarTel: 023/312-245Fax: 023/312-246

@

@

UNDP/UNOPS

OFFICES IN

CROATIA

LEDA AND

BDS OFFICES

UNOPS