THE INFRASTRUCTURE SECTOR IN SERBIA: THE INFRASTRUCTURE SECTOR IN SERBIA: OPPORTUNITIES AND LEGAL FRAMEWORKOPPORTUNITIES AND LEGAL FRAMEWORK

Financial Instruments and Support to Financial Instruments and Support to Investment ProjectsInvestment Projects

IPA IPA – European pre-accession funds– European pre-accession funds

Martin Kern, Head of OperationsMartin Kern, Head of OperationsDelegation of the European Union to the Republic of Serbia Delegation of the European Union to the Republic of Serbia

15 April 201315 April 2013Seminar organised Seminar organised by Confindustriaby Confindustria, Italy, Italy

Belgrade, Hotel FalkensteinerBelgrade, Hotel Falkensteiner

EU assistance to SerbiaEU assistance to SerbiaGoal: improve the efficiency of the Community's External Aid

Instrument of Pre-accession - new framework for programming and delivery of assistance, constituting one of the general instruments directly supporting European External Aid policies.

The overall objective of EU financial assistance to Serbia is to support the country's reform efforts and its movement towards compliance with the EU acquis, so that it becomes capable of taking on the obligations of European Union membership.

Assistance for candidate countries as well as for potential candidate countries to support them in their efforts to strengthen democratic institutions and the rule of law, reform public administration, carry out economic reforms, respect human as well as minority rights, promote gender equality, support the development of civil society and advance regional cooperation as well as reconciliation and reconstruction, and contribute to sustainable development and poverty reduction in these countries, and it should therefore be targeted at supporting a wide range of institution-building measures.

Assistance for candidate countries: focus on the adoption and implementation of the full acquis, and in particular prepare candidate countries for the implementation of the Community's agricultural and cohesion policy.

Assistance is programmed and implemented according to the following components:1. Transition Assistance and Institution Building;

2. Cross-Border Cooperation;

3. Regional Development;

4. Human Resources Development;

5. Rural Development.

Only components 1 and 2 are now open for Serbia

IPA II will be 2014 – 2020: sector approach

EU assistance to Serbia EU assistance to Serbia IPA 2007-2013IPA 2007-2013

1999-2006: CARDS managed by the European Agency for Reconstruction2007 to 2012: IPA implemented by EU Delegation2013 – onwards: national authoritiesSince 2000, Serbia received a total of €2 billion from IPA and CARDs

Programming:

- European Partnership (2008) by the European Council

- Multi-Annual Indicative Programme by the European Commission

- Annual programme: drafted by Serbian Authorities, adopted by the European Commission

- Financing Agreement signed by both

– € 653 million contracts ongoing (number of contracts: 673)

– € 300 million tenders ongoing or about to be launched - 136 tendering procedures (IPA 2009 - 2012)

– € 953 million in total

EU assistance fundsEU assistance funds

0.00

200,000,000.00

400,000,000.00

600,000,000.00

800,000,000.00

1,000,000,000.00

1,200,000,000.00

National IPA funds for Serbia (2007 - 2012)

Allocated Contracted

The Sector approach - MIPD sectorsThe Sector approach - MIPD sectors

The Multi-annual Indicative Planning Document (MIPD) is to set out the EU's priorities for assistance to Serbia for the programming period 2011-2013.Based on the needs identified in the European Partnership of the country as well as the latest Enlargement Strategy and Progress Report (adopted on 9 November 2010) The Government of Serbia, local stakeholders, EU Member States and other donors have all been consulted in the design of this MIPD.Set to increase the impact of IPA and to place a greater focus on achievable results, the Commission has decided to concentrate its efforts on targeted sectors. A sector approach facilitates cooperation among donors and beneficiaries, where possible under the lead of the national authorities, eliminating duplication of efforts and leading to greater efficiency and effectiveness. This in turn allows all stakeholders to focus more on the impact of our combined efforts.

National IPA funds per MIPD sector (2007 - 2012)

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

Allocated Contracted

AGRICULTURE AND RURAL DEVELOPMENT CROSS BORDER COOPERATION ENVIRNOMENT, CLIMATE CHANGE AND ENERGY

JUSTICE AND HOME AFFAIRS OTHER EU ACQUIS AND HORIZONTAL ISSUES PRIVATE SECTOR DEVELOPMENT

PUBLIC ADMINISTRATION REFORM SOCIAL DEVELOPMENT TRANSPORT

Some sectors financed by IPA 2011 and 2012Some sectors financed by IPA 2011 and 2012

Transport: € 13.8 million – Modernisation of railways € 8.3 million – Access roads to the Zezelj bridge € 5.5 million

Environment, Climate Change and Energy: € 95.75 million– Construction of wastewater treatment facilities: € 15 million – Municipal environment grant loan investment programme: € 19.1 million – Law enforcement in the field of industrial pollution control, prevention on

chemical accidents and establishing the EMAS System: € 3 million – Capacity building for the Energy Agency: € 1.5 million – Support to Environmental Protection and Climate Change: € 55.15 million – Support to improvement of energy efficiency: € 2.0 million

Private Sector Development (Competitiveness): € 26.68 million Socio-economic development in the Danube region € 18.5 million

– Support to SME development € 6.18 million

Decentralized Management ImplementationDecentralized Management Implementation

The Government of Serbia is developing its administrative and technical capacities in relation to the management of the Instrument for the Pre-Accession (IPA) under a Decentralised Implementation System (DIS).Preparation for the accreditation for Decentralized Management Implementation Key institutional roles are allocated: CAO, NIPAC, NAO, PAO, SPOsAccreditation Packages were submitted in June DIS structures and mainly National Fund, CFCU and NIPAC continue to receive extensive training There are several issues, which have to be tackled before the conferral of management can be granted:The Audit Authority has to become operational as it has a critical role in the accreditation process and start up of DIS.Preparations of a new IPA Regulation is under way for the next Multiannual Financial Framework

Key on-going (recently completed) EU Key on-going (recently completed) EU projects along Corridor VII (Danube)projects along Corridor VII (Danube)

€€11 M: 11 M: RIVER INFORMATION SERVICESRIVER INFORMATION SERVICES

€€6.4 M: 6.4 M: UXO IN DANUBE: SURVEY, SEARCH & REMOVALUXO IN DANUBE: SURVEY, SEARCH & REMOVAL

€€2.2 M: 2.2 M: PREPARATION OF DOCUMENTATION FOR RIVER TRAINING PREPARATION OF DOCUMENTATION FOR RIVER TRAINING AND DREDGING WORKS IN THE DANUBEAND DREDGING WORKS IN THE DANUBE

REHABILITATION OF ŽEŽELJ BRIDGE ACROSS THE DANUBE RIVER REHABILITATION OF ŽEŽELJ BRIDGE ACROSS THE DANUBE RIVER IN NOVI SAD (€28.1 M, INCL. IN NOVI SAD (€28.1 M, INCL. SUPERVISION SUPERVISION ) – PARALLEL CO-) – PARALLEL CO-FINANCING WITH SERBIAN GOV’T (€19 M)FINANCING WITH SERBIAN GOV’T (€19 M)

DESTROYED/FUTURE ZEZELJ BRIDGEDESTROYED/FUTURE ZEZELJ BRIDGE

RIS - OUTLINERIS - OUTLINE50 GOVERNEMENTAL 50 GOVERNEMENTAL VESSELS EQUIPPED VESSELS EQUIPPED WITH RIS MODULESWITH RIS MODULESAIS NETWORK: AIS NETWORK: COVERAGE - 100% OF COVERAGE - 100% OF THE SERBIAN DANUBETHE SERBIAN DANUBE160 COMMERCIAL 160 COMMERCIAL VESSELS EQUIPPED VESSELS EQUIPPED WITH RIS MODULESWITH RIS MODULES

Lessons learned: infrastructure projectsLessons learned: infrastructure projects

Strategic selection of projects pipelineStrategic selection of projects pipelineQuality of feasibility studyQuality of feasibility studyClear institutional responsibility and Clear institutional responsibility and coordinationcoordinationFinancial engineeringFinancial engineeringFinancial sustainabilityFinancial sustainability

IPA 2013IPA 2013IPA 2014 – 2020IPA 2014 – 2020

STATE OF PLAYSTATE OF PLAY

For more information: For more information:

EU Info CentreEU Info CentreDečanska 1Dečanska 1

11000 Belgrade, Serbia11000 Belgrade, Serbiawww.euinfo.rs

Thank Thank you for you for

your your attention!attention!