Jorge CASQUILHO DG AGRI – EII.4 – Pre-accession assistance for agriculture and RD

CEI SEF Summit Meeting, Tirana, November 22-23rd 2006 Workshop: integration of Western Balkans agricultural markets into EU

EU experience on Pre-accession assistance for Agriculture and Rural Development.

What can be done in the Western Balkans?

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Pre-accession aid started in 1990 under PHARE, In 2000 two new instruments started to operate: ISPA and SAPARD, These were the 3 pre-accession instruments made available for the period

2000-2006. SAPARD supports 10 Candidate Countries in their efforts to implement

the EU acquis concerning to the Common Agricultural Policy and related policies and also in helping to solve priority and specific problems of rural areas.

Up to now more than 38 thousand projects were contracted under SAPARD, involving a EU Contribution of around €2,3 billion which implies a total estimated investment of around €5.5 billion.

In 2004 eight out of ten beneficiary countries which became MS managed to commit all available SAPARD funds,

Bulgaria and Romania are still benefiting from SAPARD until accession, Croatia started implementing a SAPARD programme in 2006. Upon accession all SAPARD beneficiary countries also benefited from

having established administrative structures able to start the implementation of EU rural development measures.

Some facts on SAPARDSome facts on SAPARD

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The SAPARDmeasures

1. Investments in agricultural holdings

2. Processing and marketing3. Quality control for food4. Rural Infrastructure5. Diversification6. Land reparcelling7. Land registers8. Renovation of villages

9. Setting up Producer groups

10. Agri-environment11. Forestry12. Farm relief/management

services13. Water resources14. Training15. Technical assistance16. Leader type approach

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CHOICE OF MEASURES IN SAPARD COUNTRIESCHOICE OF MEASURES IN SAPARD COUNTRIES(% of EU contribution as in the programmes 2000-2006)

SAPARD EXPERIENCE

2623 23

114

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12

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Farm

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Rura

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For the period 2007-2013For the period 2007-2013Six instruments to substitute more than 100Six instruments to substitute more than 100

Policy driven instruments: ► Instrument for Pre-Accession (IPA) ► European Neighborhood & Partnership Instrument (ENPI)► Development Cooperation & Economic Cooperation Instrument

(DCECI)

Crises response instruments: ► Humanitarian Aid Assistance ► Macro-Financial Assistance (MFA)► Instrument for Stability

New Financial perspectives « Europe as a global Partner »

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IPA is an integrated Pre-Accession Instrument to assist candidate and potential candidate countries

It replaces 5 different programmes and instruments: Phare, ISPA, SAPARD, CARDS and Turkey pre-accession instruments

It will ensure:

– Higher level of coherence and co-ordination of EU Assistance and

– better preparation for Structural, Cohesion and Rural development Funds through progressive emulation of EU funds rules

Financial envelope allocated for the period 2007–2013: 10.2 billion € (at 2004 prices) billion € (at 2004 prices)

What is IPA?What is IPA?

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IPA – Components & IPA – Components &

Beneficiary CountriesBeneficiary Countries

1.1. Transition Assistance & Transition Assistance &

Institution BuildingInstitution Building

2. Cross-Border Cooperation2. Cross-Border Cooperation

3. Regional Development3. Regional Development

4. Human Resources Development4. Human Resources Development

5. Rural Development (IPARD)5. Rural Development (IPARD)

Annex II: Albania, Annex II: Albania, Bosnia and Herzegovina,Bosnia and Herzegovina,Montenegro, andMontenegro, andSerbia incl. KosovoSerbia incl. Kosovo

Annex I: Annex I: Croatia, TurkeyCroatia, TurkeyFYR of FYR of MacedoniaMacedonia

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• Contribute to the implementation of the acquis communautaire concerning the Common Agricultural Policy

• Contribute to the sustainable adaptation of the agricultural sector and rural areas in the candidate country

Objectives

SAPARD = IPARD

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SAPARDSAPARDlessonslessons

to be used under IPARD (I) to be used under IPARD (I)

Need to better focus IPARD measures to the specific Need to better focus IPARD measures to the specific objectives of this component by:objectives of this component by:

– Stronger focus on the EU Stronger focus on the EU acquisacquis related issues related issues namely on market efficiency, quality and health namely on market efficiency, quality and health standards andstandards and

– Concentrating the number of IPARD measures to Concentrating the number of IPARD measures to the main priorities (from 16 measures under the main priorities (from 16 measures under SAPARD to 9 under IPARD).SAPARD to 9 under IPARD).

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SAPARDSAPARDlessonslessons

to be used under IPARD (II) to be used under IPARD (II) Need to improve the programming exercise by:Need to improve the programming exercise by:

– Enhancing the knowledge of the Agricultural and Enhancing the knowledge of the Agricultural and Rural situation of the country concerned, Rural situation of the country concerned, (in depth sector analyses for the main (in depth sector analyses for the main sectors to be supported must be carried out) sectors to be supported must be carried out)

– Better targeting the final beneficiaries of Better targeting the final beneficiaries of investment measures to those that have the investment measures to those that have the possibility of having the capacity to compete in the possibility of having the capacity to compete in the EU and cannot make the necessary change using EU and cannot make the necessary change using only their own funds. only their own funds.

Addressing the rural credits issues from the Addressing the rural credits issues from the beginning of the exercise.beginning of the exercise.

Addressing the advisory services issues in advance. Addressing the advisory services issues in advance.

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IPARD – 3 Priority IPARD – 3 Priority Axes and 9 MeasuresAxes and 9 Measures

Priority Axis 1-Improving market efficiency and implementing Community Priority Axis 1-Improving market efficiency and implementing Community standardsstandards

• Investments in farms to restructure and upgrade to the EU standards;Investments in farms to restructure and upgrade to the EU standards;• Supporting setting up of Producer groupsSupporting setting up of Producer groups• Investments in processing and marketing of agriculture and fishery products to Investments in processing and marketing of agriculture and fishery products to

restructure and upgrade to the EU standards;restructure and upgrade to the EU standards;Priority Axis 2-Preparatory actions for implantation of the agri-environmental Priority Axis 2-Preparatory actions for implantation of the agri-environmental

measures and Leadermeasures and Leader• Preparation to implement actions designed to improve the environment and the Preparation to implement actions designed to improve the environment and the

country sidecountry side• Preparation of local private-public partnerships to implement local development Preparation of local private-public partnerships to implement local development

strategies;strategies;Priority Axis 3-Development of rural economyPriority Axis 3-Development of rural economy• Improving and developing rural infrastructure;Improving and developing rural infrastructure;• Development and diversification of rural economic activities;Development and diversification of rural economic activities;• Improvement of training; Improvement of training; Technical assistanceTechnical assistance

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National contribution: 25% of public

aid

EU contribution up to 75% of

public aid Private contribution

Co-financing principleCo-financing principleSAPARD = IPARDSAPARD = IPARD

Public aid up toPublic aid up to50% of total 50% of total eligible costseligible costsof the investmentof the investment

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CONTRACTING CLAIM PAYMENTS

CASH FLOW

INVESTMENT

100 %

60 +/- DAYS

GRANT

50%

Beneficiary Cash flowBeneficiary Cash flowSAPARD = IPARDSAPARD = IPARD

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1. IPARD Programme approved by a Commission Decision;

2. Bilateral agreement(s) legally biding both parties (Framework, sectoral, financial);

3. Managing Authority;4. National Fund under the National Authorizing

Officer’s responsibility;5. Nationally accredited IPARD Agency to which

the management of aid was conferred via a Commission Decision.

IPARD basic conditions IPARD basic conditions

= SAPARD= SAPARD

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What must be done to What must be done to benefit from IPARD?(I)benefit from IPARD?(I)

Establishing national structures able to define Establishing national structures able to define strategies, programmes, management and strategies, programmes, management and monitoring conditions for IPARD type programmes;monitoring conditions for IPARD type programmes;

Enhancing the knowledge and the transparency of Enhancing the knowledge and the transparency of the Agricultural and Rural situation (rural census, the Agricultural and Rural situation (rural census, farm register, land cadastre, price statistics, sector farm register, land cadastre, price statistics, sector analysis for the more important agricultural sectors, analysis for the more important agricultural sectors, etc);etc);

Starting the definition of a National Strategy for Starting the definition of a National Strategy for Rural Development involving other public bodies Rural Development involving other public bodies and the relevant civil society partners;and the relevant civil society partners;

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What must be done to What must be done to benefit from IPARD?(II)benefit from IPARD?(II)

The main public bodies that must be involved:The main public bodies that must be involved:– Veterinary authorities,Veterinary authorities,– Environmental authorities.Environmental authorities.

Support the organization of the civil society Support the organization of the civil society partners, namely: partners, namely: – Farmers,Farmers,– Food processors, Food processors, – Environment and, Environment and, – Local rural development associations.Local rural development associations.

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What must be done to What must be done to benefit from IPARD?(III)benefit from IPARD?(III)

Support initiatives to facilitate access to Support initiatives to facilitate access to credits to farmers and rural business (not credits to farmers and rural business (not eligible under IPARD),eligible under IPARD),

Establishment of advisory and extension Establishment of advisory and extension services for farmers and rural population services for farmers and rural population (not eligible under IPARD),(not eligible under IPARD),

Try to gain experience through well defined Try to gain experience through well defined and targeted ‘pilot projects ’and targeted ‘pilot projects ’

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What must be done to What must be done to benefit from IPARD?(IV)benefit from IPARD?(IV)

Make use of all possible types of support, Make use of all possible types of support, namely:namely:– National resources,National resources,– IPA - Institution Building Component, IPA - Institution Building Component, – TAIEX,TAIEX,– IFI’s (World Bank, EBRD, etc.)IFI’s (World Bank, EBRD, etc.)– FAO, and other possible bilateral and FAO, and other possible bilateral and

multilateral support.multilateral support.

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IPARD Web-Sites DG Agriculture

http://www.ec.europa.eu/agriculture/external/enlarge/index_en.htm

DG ENLARGhttp://www.ec.europa.eu/enlargement/countries/

candidate_en.htmCommission Manual on Procurement Rules

http://www.ec.europa.eu/comm/europeaid/index_en.htm