Annex № 3

STRATEGY FOR COMMUNITY-LED LOCAL DEVELOPMENT

(COMPULSORY ELEMENTS)

Fond Times New Roman 12, space 1.151. Description of the Local Action Group:

/not more than 3 pages/The non-profit Association "Vazhod – Vetrino, Valchi dol, Provadiya Local Action Group” was established in 2010 in line with the “Leader” Approach principles. It is registered under the Law on Non-Profit Legal Entities by Decision № 74 of 10.03.2010, company case No. 20/2010 of Varna District Court. The Local Action Group /LAG/ is registered as a public benefit organization with the Central Register of the Ministry of Justice under No. 20100409012.

In accordance with the Statute, the General Meeting (GM) is the supreme collective body of the Association. It consists of 65 members and includes representatives of over 50% of the settlements on the LAG's territory: the public sector is represented by the three municipalities of Vetrino, Valchi dol and Provadiya, the business sector – by 31 representatives and the non-profit sector - by 31 representatives, all of them with permanent address and registered office on the territory of the LAG. None of the represented sectors in the General Meeting exceeds 49 per cent of the voting members, according to Art. 28, para. 1 of the Non-Profit Legal Entities Act. The GM elects and releases the members of the Board of Directors /BD/ and the Control Board (CB).

The Control Board consists of 7 people, members of the Association. It is elected by the General Meeting for a term of 5 /five/ years. Three members of the Board of Directors are representatives of the municipal authorities of Vetrino, Valchi Dol and Provadiya, two of them are representatives of the business sector and two - representatives of the non-profit sector.

In period 2009 – 2011 "Vazhod – Vetrino, Valchi dol, Provadiya" LAG has implemented a project for the preparation of a Local Development Strategy under Measure 431-2 "Acquisition of Skills and Achievement of Social Activity" from the RDP 2007 - 2013, but the prepared Strategy was not approved. The project implementation under sub-measure 19.1. “Assistance for preparatory activities” in 2015 – 2016 is a major step towards capacity building, training and strengthening of the partnership established, for the purposes of preparation and implementation of a Community local development strategy.

The geographical area of «Vazhod – Vetrino, Valchi dol, Provadiya» Local Action Group covers the entire territory of the three municipalities – Vetrino, Valchi dol and Provadiya. Administratively all the three municipalities are part of the Varna District. The region is distinguished by its extremely important strategic position in North-eastern Bulgaria. The municipalities of Vetrino, Valchi dol and Provadiya are located in

the eastern part of the Varna District / Northeast region /

The territory of the Vazhod – Vetrino, Valchi dol and Provadiya LAG has a favourable geographic location. The route of the Hemus Highway, connecting the town of Varna with Sofia and the railway, pass through both towns.

57 settlements are included in the urban structure of Vazhod – Vetrino, Valchi dol and Provadiya LAG territory of the total area of 1284 km²: the three administrative municipal centres – the town of Provadiya, the town of Valchi dol and Village of Vetrino and 54 villages. The Vazhod – Vetrino, Valchi dol and Provadiya LAG covers all 57 settlements in the municipalities.The LAG is actively working with the local community to achieve balanced and sustainable development, in one word: "RISE"1.1. Data of Municipalities and settlements, falling within the LAG’s territory:

- a list of municipalities, covered by the LAG;

1.Provadiya Municipality2.Vetrino Municipality3.Valchi dol Municipality

- a list of settlements, covered by the LAG;

1. All settlements in Provadiya municipality (25 units):The town of Provadiya, Blaskovo Village, Bozveliysko Village, Barzitsa Village, Venchan Village, Gradinarova Village, Dobrina Village, Zhitnitsa Village, Zlatina Village, Kiten Village, Komarevo Village, Krivnya Village, Manastir Village, Nenovo Village, Ovchaga Village, Petrov dol Village, Ravna Village, Slaveykovo Village, Snezhina Village, Staroselets Village, Tutrakantsi Village, Hrabrovo Village, Chayka Village, Cherkovna Village, Chernook Village;

2. All settlements in Vetrino municipality (10 units):Belogradets Village, Vetrino Village, Gabarnitsa Village, Dobroplodno Village, Mlada Gvardiya Village, Momchilovo Village, Nevsha Village, Neofit Village, Sredno selo Village, Yagnilo Village;

3. All settlements in Vetrino municipality (22 units):The town of Valchi dol, Boyana Village, Brestak Village, Voyvodino Village, General Koselovo Village, General Kolevo Village, Dobrotich Village, Esenitsa Village, Zvanets Village, Izvornik Village, Iskar Village, Kaloyan Village, Karamanite Village, Krakra Village, Metlichina Village, Mihalich Village, Oborishte Village, Radan voyvoda Village, Stefan Karadzha Village, Strahil Village, Cherventsi Village, Shtipsko Village

- number of inhabitants of the territories, covered by LAG

Total population on the territory of the LAG up to 31st December 2016 as per NSSI data: 35 770 inhabitants, including:

Municipality Inhabitants

Municipality Inhabitants

Municipalityinhabitants

Provadiya Municipality

21222Valchi dol Municipality

9597Vetrino Municipality

4951

Blaskovo Village 1278 Boyana Village 212Belogradets Village

1201

Bozveliysko 1296 Brastak Village 924 Vetrino Village 954

Village

Barzitsa Village 178Voyvodino Village

200 Gabarnitsa Village 86

Venchan Village 242The town of Valchi dol

2962Dobroplodno Village

804

Gradinarovo Village

799General kiselovo Village

485Mlada gvardiya Village

280

Dobrina Village 204General Kolevo Village

279Momchilovo Village

174

Zhitnitsa Village 755 Dobrotich Village 395 Nevsha Village 478

Zlatina Village 256 Esenitsa Village 360Neofit Rilski Village

704

Kiten Village 37 Zvanets Village 52Sredno selo Village

44

Komarevo Village

397 Izvornik Village 187 Yagnilo Village 226

Krivnya Village 369 Iskar Village 103Manastir Village 477 Kaloyan Village 213

Nenova Village 49Karamanite Village

333

Ovchaga Village 132 Krakra Village 7Petrov dol Village

347 MetlichinaVillage 160

The town of Provadiya

12151 Mihalich Village 652

Ravna Village 139 Oborishe Village 270Slaveykovo Village

374Radan voyvoda Village

407

Snezhina Village 603Stefan Karadzha Village

696

Staroselets Village

43 Strahil Village 58

Tutrakantsi Village

251Cherventsi Village

424

Hrabrovo Village 363 Shtipsko Village 218Chayka Village 59Cherkovna Village

195

Chernook Village 2281.2. Map of the territory:

2. Description of the community participation in the strategy development process:(not more than 2 pages)

2.1. Description of the process - meetings, seminars, conferences, trainings and public debatesThe development of the local capacity of sustainable development on the territory of Vazhod – Vetrino, Valchi dol and Provadiya LAG started 7 years ago with wide public participation, full involvement of all Interested Parties and motivation for the implementation of the LEADER Approach. By implementation of the project No 19-19-1-01-53/4th September 2015 under sub-measure 19.1 "Support for Preparatory Activities" the LAG achieved high awareness, publicity and coherence of the developing process of strategy for community-led local development, increased local capacity of local development and attracted new active Interested Parties. LAG provided equal access for participation of all potential Interested Parties and local communities throughout the LAG's territory.

The LAG has fulfilled over 20 information and consultation events for the Strategy preparation and structuring of its territory for the Community-led-local development approach implementation. For this purpose, various forms of information, training and consultation of the representatives concerned of the local communities of the settlements in the LAG area are used, related with the Strategy development process popularisation - information meetings, seminars, information conferences. In parallel with the process popularization activities, activities related to the Strategy preparation were realized, incl. work meeting related to consulting the Strategy preparation, information meetings related to consulting with the local community, Strategy public discussions.

1. Over 16 meetings, seminars, conferences were held - Annex: attendance lists.

1. One-day information meetings – 2 meetings; in the town of Provadiya and Vetrino village2. One-day information seminars – 2 seminars: in the town of Provadiya and Vetrino village3. One-day information conferences – 2 conferences: in the town of Provadiya and Vetrino village4. One-day work meetings for consultations on the preparation of the strategy – 4 work meetings: in the

town of Provadiya, Vetrino village and the town of Valchi dol5. One-day information meetings for consulting the local community – 6 meetings: in the town of

Provadiya, Vetrino Village and the town of Valchi dol2. 3 one-day and 1 two-day trainings for the LAG team and local leaders took place, related to the development of the Strategy for the CLD were held. Annex: attendance lists

1. Two-days training for the LAG team – 1 training: in Vetrino village2. One-day trainings for the local leaders – 2 trainings: in the town of Provadiya

3. One-day training for the LAG team -1 training: in the Vetrino village3. Four public discussions on the CLD Strategy were held. Annex: attendance lists

1. Public discussion on 12th April 2016 in the town of Provadiya2. Public discussion on 21st April 2016 in the town of Provadiya3. Public discussion on 4th May 2016 in the town of Valchi dol

4. Public discussion of the updated Strategy on 18th August 2017 in the Vetrino villageA total of 540 people, representing 100% of the Interested Parties, participated in the information and development process of the CLD Strategy.4. The Strategy of the LDS received support by 958 inhabitants, representing 2.69 % of the population on the territory of LAG – Annex “List of the population supporting the Strategy for CLD of ” «Vazhod – Vetrino, Valchi dol, Provadiya» Local Action Group.5. On 18th August 2017 the Strategy for CLD of «Vazhod – Vetrino, Valchi dol, Provadiya» Local Action Group was approved by a decision of the General meeting of the association.The problems, identified through the means of analysis and researches, performed on the territory, were discussed during a number of meetings with the local community and it was unanimously decided to fund the activities of the Strategy for CLD only from the European Agricultural Fund for Rural Development.Considering the LAG`s territory specific, wholly in a rural area and the local economy orientation it was estimated that the European Agricultural Fund for Rural Development funding would significantly contribute to overcome the main problems in the development of LAG`s municipalities.

2.2. Groups/sectors of Interested Parties, involved in strategy developmentThe Interested Parties identified were actively involved in identifying the strengths, weaknesses, opportunities and threats, when turning them into basic needs and potential for development, in selecting the main goals, the specific goals, the desired results and the priority given to them, in selecting the types of actions.A research and an analysis within the framework of the project under sub-measure 19.1 "Support for preparatory actions" was prepared of the specific Interested Parties and their needs in connection with development and implementation of the Strategy for CLP. A total of 12 groups of Interested Parties were identified on the territory. Out of these, a total of 12 groups of interested parties were involved in the whole process of development of the Strategy of the CDL, representing 100% of the identified Interested Parties groups:

I. 2 groups of Interested Parties - representatives of the public sector:- Municipal administrations and Municipal councils – Municipalities of Vetrino, Valchi dol and Provadiya

- educational institutionsI. II. 4 groups of Interested Parties - representatives of the industrial sector:

- Farmers and cooperations- Micro-enterprises from trade, services and tourism sectors- Micro-enterprises from manufacturing sector- Small and medium enterprises

III. 6 groups of Interested Parties- representatives of the non-profit sector:- community centres and cultural institutions;- associations in the field of youth activities and sport- associations and foundations, focused on development of the territory, ecology and tourism- Boards of trustees – school, churches etc.- representatives of minority communities and vulnerable groups- citizens and local leaders;Detailed data of the Interested parties participation in each event can be found in Annex “Identifies Interested parties participation in social discussions and trainings on the information and development of the Strategy for community-led local development of Vazhod – Vetrino, Valchi dol and Provadiya” LAG and evidences on consultations with the Interested parties in regard to LAG`s Strategy project.

3. Description of the regional situation at the moment of application:(not more than 10 pages)

I.1. Analysis of needs and potential for development of the territory:1. NATURAL – GEOGRAPHIC AND RESOURCE POTENTIAL The territory of the LAG falls into the Ludogorsko – Dobrudzhanskite massifs region. The terrain relief is flat and hilly-plateau with an abundance of exceptionally fertile soils, suitable for agricultural activities. The LAG falls in the transitional continental climate area, the climate of the region is strongly influenced by the proximity of the Black Sea and the flat and hilly plateau relief.Soils: The main soil type is rich, poorly leached black earths, suggesting the cultivation of many crops in high and stable yields. Minerals: Near by the town of Provadiya is located the only Mirovsko salt deposit in the country, unique in its conditions of setting, shape and chemical composition. Тhere are deposits of clay and quarry materials in Valchi dol Municipality - sand and gravel, necessary for the construction industry development. The water resources in the region refer to the Black Sea catchment area with direct outflow to the Black Sea. There are 15 small dams in the Valchi dol Municipality. On the territory of Provadiya there is a deposit of mineral water with a temperature of 24 ° C - a condition for development of balneo tourism. Biodiversity: A large part of the Provadiya Municipality falls within the NATURA 2000 National Ecological Network, including the Provadiya-Royaksko Plateau Protected Area and the Nevsha-Venchan and Komunari rock massifs. On the territory of the municipality there are four protected territories: the "Slaveykova gora", "Snezhanska koria", "Golyamata kanara" and "Probitia kamak” - Tsar Borisov lopen" protected areas. On the territory of Valchi dol Municipality, the protected plants include horse chestnut and oriental hawthorn. Part of the territory of Vetrino Municipality is included in the Natura 2000 National Ecological Network. "Taushantepe" and “Golyama I malko bulo” protected areas are located in the municipality. The soil fertility combined with the favourable transitional continental climate, influenced by the Black

Sea, form a potential for diversification of agricultural activities on the territory through the development of crop production - viticulture, horticulture, vegetable production. The abundance of surface and groundwater and the construction of 15 micro-dams are factors that favour the development of irrigation agriculture in the region. The sole salt deposit in the country is operated within the LAG`s borders – Mirovo salt deposit. Given the increasing prevalence of halo therapy (salt therapy) as a method of treatment for a number of diseases, it is necessary to explore the applicability of rock salt from the Provadiya region to SPA and wellness treatments. The presence of a mineral spring on the territory of the town of Provadiya represents, at the present moment, unrealized potential for the development of balneotherapy and SPA tourism. The wide variety of protected areas and areas within the territory of the three municipalities included in Vazhod – Vetrino, Valchi Dol, Provadiya LAG is a broad basis for development of ecological and photo tourism. There are also conditions for fishing tourism. The geographical location of the researched area - the proximity to the towns of Shumen, Dobrich and Varna, as well as to the Varna-West Port and Varna Airport, access to Varna - Sofia, Varna – Ruse railway and Hemus highways, is a factor with a positive impact for the unlocking of the potential of LAG`s municipalities for: expanding existing markets and identifying new market niches, developing tourism, resourcing various manufacturing activities.

3. DEMOGRAPHIC CHARACTERISTICS The demographic development is influenced by national demographic processes - reduced marriage and birth rates, as well as the specific ones - increased mortality and intensive emigration. As a result of those processes, the population on the LAG's territory decrease and age every year.The birth rate in all three municipalities shows a steady decrease trend, which leads to the deepening of the demographic crisis. In the period 2007 - 2014 there has been a relative retention of mortality rates. The natural increase of the population in all three municipalities is negative for the period 2010-2014. Age structure: The relative share of the working-age population (from 15 to 64 years) is 54.4% on average from the total population of the three municipalities. Under working age (0-14 years) is on average 14.03% of the population of the municipalities, and the group over 64 years old- 31.57%. By ethnicity - 67.5% of the residents identify themselves as Bulgarians, 16.2% as Turks, 14% as Roma and 0.5% indicated other ethnicity. The relative diversity of the ethnic composition requires the implementation of policies and activities, related to the integration and social inclusion of minorities.The immigration is not smoothly distributed – the number of the immigrants from the area is larger than the number of the people, who chose to live here. The severely deteriorated age structure reflects a decrease in the working-age population, which shapes the potential of the labour resources within the LAG's territory. A positive phenomenon is the higher proportion of the under working age population in the Provadiya and Valchi dol municipalities in comparison with the situation on national level. Harnessing this potential in support of the future development of the local economy and the overall viability of the region requires the implementation of a complex of social and economic mechanisms across the three municipalities. Unfavourable trends can be overcome by creating employment conditions and improving the living environment. Measures to stimulate economic activity and increase the quality of life will help to do this. Impact measures are needed that take into account the needs of different age and ethnic groups. The emerging shortage of skilled labour requires measures, targeted to intensify the productions, as well as new equipment

and technologies to provide more attractive working conditions.

3. ECONOMIC DEVELOPMENTThe economic indicators of Provadiya, Valchi dol and Vetrino municipalities have lower than the average values, calculated for Varna district, which places them in one of the last places in terms of economic development at district level. These municipalities are designated as "areas of targeted support", which make them a particular concern of the state's regional policy. The micro enterprises are the largest part of the enterprises structure – and namely 93.2 % of the total value. The funding shortage does not meet their needs and impedes the development of R&D, with a negative effect on their ability to develop innovative products, technological and process solutions.Structurally important sectors for the local economy are agriculture, food industry, production of building materials, alternative rural tourism. In the structure of the economic sectors, by number of enterprises, the leading sector is Trade, followed by Agriculture. The industry is poorly represented within the territory of the local region.The entrepreneurial activity, observed during the recent years in the municipalities of Provadiya, Vetrino and Valchi Dol does not contribute significantly to the economic development of the region, due to the lack of production facilities of high added value. The priority for achieving sustainable upward dynamics of economic processes in the long run should be the development of the manufacturing industry, closing the cycle - raw material-finished product. The municipalities of Provadiya, Vulchi dol and Vetrino have a good supply of local raw materials in terms of cereals reprocessing industry and less volume of vegetables and fruits. Therefore, the opportunities for the development of the municipalities should be based on the development of the food industry to go with the main agricultural production, the development of greenhouse production and the creation of conditions for alternative tourism.Farming: Grain production is the leading agriculture sector in the three municipalities. Given the potential of the soil and the climatic conditions, a disadvantage in economic and social terms, is the fact that labour intensive agricultural production - viticulture, horticulture, vegetable production and animal farming occupy a very small share in the structure of the total figure of farming. Livestock farming is not a major field, but it is a growing sub-sector in the area. The reasons are rooted in both the economic conditions of production and production (high production costs at low purchase prices) and the obsolete and depreciated equipment, the hygiene requirements in the sector, the small size of the farms and, as a result, poor investment activity, the lack of initiative towards cooperation of producers, etc. Beekeeping is well developed due to the right combination of climate, vegetation and professional experience.The forests are characterized with significant biodiversity and extreme social and economic importance.Tourism: There is a potential for development of cultural, historical, rural, fishing and eco-tourism on the territory of the LAG, which is conditioned by a number of favourable conditions - natural resources and rich cultural and historical heritage. The proximity to the major tourist centres (Varna, Golden Sands and Albena) promotes the development of "weekend tourism". There are conditions for ecotourism development - the village of Nevsha is a protected area of extremely high importance, Taushan tepe is one of the three places in Bulgaria where people are promoted for research and conservation of plant biodiversity, two ecological trails in the Koshu Bair area and in the Klyunka locality near Valchi Dol, ski run in Koshu Bair locality near the town of Valchi dol. The region has a potential for development of sport fishing, after investments in the construction of facilities and land improvement in the immediate vicinity of the micro dams and General Kiselovo Dam, which are fished and used for recreational fishing. There are four stocked dams in Vetrino

Municipality with picturesque nature, which are perfect preconditions for the development of water sports.Rural tourism, with the revival of local folklore traditions and customs and old, forgotten, local crafts, is a good prospect for the development of the municipalities.The rural tourism, is a good perspective for the development of the Municipality, by highLAGhting the renaissance of the local folklore traditions and customs, as well as old forgotten local crafts.

In order to overcome the problems arising from the limited capacity of the local market, it is necessary to stimulate the creation of producer associations.

Extremely rich cultural and historical heritage within the region, the preserved ethnographic traditions, the presence of numerous reLAGious sites, the ecological cleanliness of the area, serve as a basis for the creation of a comprehensive, complex and unique regional tourist product. In order to create quality and sought-after tourist products, it is necessary to pursue a purposeful and effective policy of affirming and promoting territorial identity, combining the benefits of natural and cultural-historical heritage with the specific products on the territory. The problems that LAG can solve are mainly reduced to the unfavourable condition of the tourist infrastructure, the limited accommodation for tourists, and the lack of a complete regional tourist product.

4. SOCIAL CHARACTERISTICS AND CONDITIONS OF LIFE

The main problem in the social field is the reduction of the actual household incomes and the restructuring of the consumer basket.The average monthly income per capita in the LAG is lower than the national average, which is an unfavourable trend in the welfare of the population.

Employment and Unemployment: The largest share in Provadiya is the share of the economically active persons - 46.4%. The values of the coefficient of economic activity for the municipalities of Vetrino and Valchi dol amounted to 35.9% and 35.0% respectively. In all three municipalities, the share of unemployed persons with registration for more than one year in comparison with the total number of unemployed persons is significant. Employment opportunities are limited. The private sector employs a very small number of vacancies and basic employment is provided through the various national programs. In the public sector, there are difficult job vacancies and job opportunities are extremely limited there. The relatively low level of income, limited employment opportunities and high unemployment are indicative of the deteriorated quality of life in the LAG region.It is necessary to plan and implement measures, aimed at diversifying economic activities and promoting entrepreneurship on the territory, in order to secure employment, especially among vulnerable groups in the labour market.The health care system is well developed, but does not generally cover the needs of the population's health care. There is only one hospital in Provadiya. In the municipality of Vulchi dol there is an affiliate for emergency assistance to the CSME-Varna. Registered GPs in Provadiya Municipality are 15, there are 6 dentists and 16 specialized individual and group outpatient practices. There are 8 general practitioners in Valchi Dol: 4 practitioners, 4 dentists and 6 specialists. The health network in the municipality of Vetrino includes 5 general practitioners. It is necessary to stimulate and support the available medical staff to retain them on the territory and to provide support for the improvement and modernization of their equipment.Education: The educational process on the territory of the LAG is carried out by schools and kindergartens and service units, including: 4 kindergartens, 14 general schools, 1 designated school and 3 vocational high

schools. The buildings of the schools and kindergartens are in good general condition. Funds are allocated annually for ongoing repairs. The material and technical base in the schools is old and needs modernization.The identified problematic areas in the field of health care and education are reduced to: difficult access of the population in all three municipalities to health services - insufficient number of medical practices in the villages and functional capacity of hospital care; insufficient number of dental practices within the LAG territory; lack of pharmacy service at night and in some of the settlements; insufficient capacity of kindergartens in the city of Provadiya and in some other settlements; continuing optimization of the school network; lack of dental practices in schools; discrepancy between labour market needs and the trained personnel.The centres of cultural development and spiritual enrichment of the population on the LAG territory are the community centres, museums, libraries, galleries, reLAGious houses of different denominations. The activity is carried out by 47 community centres, the Museum of History and the Art Gallery. The main cultural needs are related to the renovation of buildings, furnishings and equipment, as well as support for the preservation of cultural heritage.The provided social services on the LAG territory are aimed at overcoming the social exclusion, inclusion and social protection of the disadvantaged, disabled and elderly people. Despite the progress, made on deinstitutionalization and the relatively diverse range of social activities, it is necessary to point out the need to expand the scope of social services provided, especially for single older people, which number is expected to increase in view of the aging population. . The preservation of the rich cultural and historical heritage requires a serious financial resource and it is crucial for the preservation of the local identity and vitality of the area. Part of this resource can be provided by the LAG's Community-led Local Development Strategy measures. An advantage of the territory is the relatively preserved network of community centres, with a rich library fund and a high degree of social engagement. In order to maintain the wide range of functions for the benefit of the local society, it is necessary to improve the outdated material and technical base, to ensure the maintenance of the ethnographic collections and amateur groups formed, as well as to support the organization of cultural and mass events. Investments are needed for the preservation, promotion and, respectively, valorisation of the cultural and historical heritage within the local community.

5. TECHNICAL INFRASTRUCTURELAG Vazhod - Vetrino, Valchi dol, Provadiya has a well-developed road and street network, evenly distributed throughout its territory, but it needs renovation and modernization / there are streets without permanent pavement/. Hemus Highway is the main link between Sofia and Varna, which is why it has important socio-economic importance for the development of the Municipality. It is difficult to carry out transport communication between the two parts of Provadiya, because it is separated by the railway line Varna - Sofia.The degree of construction of the water supply network in the settlements is 100%, but its condition is not particularly good. The predominantly etherite pipes laid more than 40 years ago need a gradual replacement. Only Provadiya has a complete sewerage network. Partially constructed (80%) is the sewage network and the external collectors in the town of Valchi dol. In the municipality of Vetrino there is a partial sewerage system built only in the village of Vetrino.Telecommunications: Communication infrastructure is well developed. The quality of the connections is

relatively good. Postal and telecommunication services are offered in all the settlements of the municipalities. The three mobile operators have coverage on the LAG`s territory. The building and the guaranteed transmission of Internet services for the entire public sector, including facilitated access for the people, is a necessary and obLAGatory step towards the information society.Energy infrastructure: All settlements in the municipalities are electrified. Outdated networks and low reliability in some areas have a negative impact on the supply of consumers within the regulatory parameters. The Valchi dol Municipality has the potential to produce energy and eco-fuels from renewable sources - use of solar energy and utilization of large quantities of biodegradable waste from the agricultural sector.In order to solve the problems of the urban development of LAG Vazhod - Vetrino, Valchi Dol,

Provadiya, it is necessary to improve the spatial planning on the territory of the municipalities.

6. ENVIROMENTAL AND ECOLOGICAL CONDITIONSThe main ground air pollutants on the territory are household heaters (the population heating devices are primarily on firewood and coal), agricultural activities during the autumn and spring tillage, fertilization and treatment with plant protection products, and motor transport. It is necessary to provide budgetary funds for repair and improvement of the condition of the IV class roads and the depreciated street network.The tendency for expansion of gasification of municipal properties is favourable and should continue. Provadiya Municipality has 9 industrial, 22 public and 71 residential customers gasified.The water status of the LAG is moderate to good. Municipalities envisage and should implement measures and activities that contribute to preservation their well-being.

The NEEDS for intervention within the local community are related to:- improving the quality of life and overcoming poverty;- development of productions providing high added value;- development of modern agriculture;- enhancing the innovative capacity of businesses and farmers;- expanding the territorial scope and range of social services offered;- affordable healthcare;- Improvement of infrastructure, incl. the tourist;- conservation of natural resources and local identity.

There is a POTENTIAL for local area development based on:- Use the grain production raw material base for the development of the food industry (production

of bread and pasta, ware, cereals, etc.);- Diversification of grain production through the cultivation of alternative cereals - spruce, spelled,

etc.;- Fruits and vegetables growing, viticulture and animal husbandry development, as a raw material

base for the development of the food industry;- Development of organic crop and livestock production;- Cultivation of local varieties of plants and animal breeds and the production of traditional

products suitable for registration under a common trade mark;- Integrating primary production with processing and tourism, as an innovative marketing approach;- Development of a comprehensive and unique regional tourist product based on the development

of cultural, historical, ecological, rural, reLAGious and wine tourism;- Development of balneology and spa tourism.

3.2. Identified groups of Interested Parties on the LAG territory:There are 12 groups of Interested Parties identified on the LAG`s territoryI. 2 groups of Interested Parties - representatives of the public sector:- Municipal administrations and Municipal councils – Municipalities of Vetrino, Valchi dol and Provadiya;- Educational institutions;II. 4 groups of Interested Parties - representatives of the industrial sector:- Farmers and cooperations;- Micro-enterprises from trade, services and tourism sectors;- Micro-enterprises from manufacturing sector;- Small and medium enterprises;III. 6 groups of Interested Parties- representatives of the non-profit sector:- community centres and cultural institutions;- associations in the field of youth activities and sport;- associations and foundations, focused on development of the territory, ecology and tourism;- boards of trustees – school, churches etc.;- representatives of minority communities and vulnerable groups;- citizens and local leaders;

3.3. Analysis of strengths and weaknesses, opportunities and threats:The SWOT analysis is a consequence of the socio-economic analysis and presents the findings of the study on the LAG`s status and potential, focusing on strengths, weaknesses, opportunities and threats to development.STRENGTHS WEAKNESSES1. Territory geostrategic position, providing proximity to large administrative centres and accessibility of the territory to tourist services development.2. Fertile soils and climatic conditions, suitable for growing a wide range of crops.3. Preserved flora and fauna.4. Balanced gender population structure.5. Prevailing share of people in working age.6. Higher relative share of working age population than the national average rate.7. An entrepreneurial initiative developed in the field of agriculture8. High motivation and social commitment for development by the local community.9. Agricultural production traditions.10. Availability of cheap labour.11. Increase in the number of micro-enterprises.12. Good availability of land resources.13. Positive trend in beekeeping development.14. Supply of tourist products and services (mainly on

1. Low reserves of minerals.2. Low acquisition of the natural resources.3. Adverse climatic events during the winter season - snowdrifts and icy frosts, which reduce the productivity of crop production and contribute to deterioration of the infrastructure.4. Clear rate in population decline.5. Negative natural and mechanical growth.6. A large relative share of population above the active age.7. Low education qualification.8. High unemployment rate.9. Limited opportunities of the young people with a high level of education realization.10. Concentration of cereals, industrial and forage crops production.11. Low degree of sustainability and viability of the micro-enterprises.12. Limited financial resources for investment.13. Low capacity of the local businesses to

the territory of Provadiya municipal).15. Tourist Information Centre is built in Provadiya Municipality.16. Existence of administrative capacity to work on EU funded programs17. Ethnography, folklore, traditions preserved18. Well-developed social services meeting population needs.19. Active cultural and educational activity of the community centres.20. Opportunities for training of personnel into the field of agriculture and tourism.21. The population has access to the available educational network between the municipal centres and the villages.22. Expert experience gained by the community centres for work on projects23. Good transport infrastructure and proximity to Hemus Highway, Varna-West Port and Varna Airport.24. Electricity supply in all settlements.25. Good telecommunication services - post, mobile networks, internet, cable TV.26. Water supply network built.27. Good ambient air quality28. Soil fertility stored29. Waste collection in all settlements.30. The only salt field in the country and the ancient town in Europe “Provadiya - Solnitsata”31. Natural environment unique elements - rock monasteries.32. Organic viticulture trend of development.33. Offering a complex tourist product based on wine production, combined with local specialties, horseback riding opportunities and advertising the cultural and historical heritage.

generate employment.14. Limited internal market due to low purchasing power of the population.15. Undeveloped or missing tourist infrastructure.16. Deteriorated health infrastructure.17. Poorly advertising of local identity, cultural and historical monuments.18. Outdated equipment and stock of buildings in cultural and educational institutions.19. Limited funding opportunities for activities related to archaeological research, enrichment of historical memory and preservation of cultural and historical heritage.20. Poorly utilization rate of the available tourism resources.21. Lack of built sewage network in most settlements.22. Depreciated water supply network.23. Lack of wastewater treatment facilities.24. Limited internal financial resources for the territory development.25. Presence of class III and IV municipal roads in bad condition.26. Lack of Information and communications technologies in the business.27. Shortage of highly qualified workforce, generator of new ideas and innovative technological solutions.28. Low innovation commitment and culture of entrepreneurs in the area.29. Limited financial resources and inability to invest in innovative development.

OPPORTUNITIES THREATS1. Valorisation of natural landmarks.2. Expansion of plantation areas on the territory of settlements and improvement of landscape.3. Increasing of protection degree against adverse effects resulting from climate change.4. Development of an entrepreneurial initiative in the

1. Adverse effects on the natural landscape from the implementation of infrastructure projects and targeted human activity.2. Deepening negative demographic trends.3. Increase in the long-term unemployed share

field of traditional and organic productions.5. Development and implementation of an integrated tourism product, based on local food and traditions.6. Business incentives to increase the employment.7. Investments in horticulture and viticulture development in order to provide a raw material base for the food industry development.8. Ensuring the sustainability of the positive dynamics in beekeeping.9. Closure of the "raw material-processing" cycle, providing value-added increase at local level.10. Development of activities, alternative to agriculture activities - rural and eco-tourism; production of local products of high quality.11. Increasing the level of financial support from national and European sources.12. Social integration of vulnerable groups.13. Expanding the local capacity of youth activities and sport development structures.14. Development of the cultural and historical heritage potential and its valorisation through tourism.15. Improvement of the social services provided and extending their territorial scope.16. Attracting of financial resources (national and European) for infrastructure projects.17. Development of public-private partnerships.18. Further construction of the sewerage network.19. Construction of treatment facilities.20. Organic agriculture and organic food production development.21. Growing local varieties and breeds of animals and alternative crops with unique nutritional qualities.22. Development of appropriate forms of tourism, based on the rich cultural and historical heritage and natural landmarks and development of tourist packages, combining different tourist products to create a complete tourist product - "weekend tourism" to attract tourists from the nearby Black Sea resorts / Varna, Albena, Golden sands, etc. /

and increase in the hidden unemployment.4. Risk of social exclusion of vulnerable groups.5. Reducing the administrative capacity to work on European programs due to lack of qualified personnel.6. Increased competition pressure.7. Discrepancy between the qualitative characteristics of the labour resources and business requirements.8. Larger share of young people with high educational and professional qualifications leaving their home.9. Inability to co-finance project proposals.10. Reduction of funds for the maintenance of cultural and historical heritage.11. Young people's lack of interest and neglect of tradition due to the introduction of a more modern lifestyle.12. Decrease of the level of participation and holding of cultural events.13. Difficulties when providing social services as a result of budget constraints.14. Limited co-financing budget of infrastructure projects.15. Deepening of differences in the life quality in municipal centres and villages.16. Lack of financial incentives to generate growth in entrepreneurship aimed to innovative activities and industries17. Weak institutional support.18. Ignorance of the essence of the social entrepreneurship and scepticism about the benefits of public-private partnerships.

3.4. Needs of the vulnerable and minority groups, if any:

The local community and LAG take into account the fact, that CLD is a useful tool for empowerment of the local communities, including disadvantaged groups, to improve the capacity of local interested parties to provoke social innovation at local level.

The following vulnerable groups and minorities are identified on the territory:- Ethnic minorities- People, incl. children and youths with disabilities- Unemployed- Elderly people

By ethnicity, 67.5% of the inhabitants of Provadiya, Valchi dol and Vetrino Municipalities identify themselves as Bulgarians, 16.2% as Turks, 14% as Roma and 0.5% indicate other ethnicity. The data show a distinct Roma and Turkish minority in the LAG, who have their specific needs. Accumulation and isolation of Roma communities is observed in many villages in the most of the municipalities on the territory of LAG.

Minorities, especially Roma, have the following needs - increasing the level of fluency in Bulgarian language, better education and qualification, regular attendance and prevention of early school dropping, minimizing long-term unemployment and creating work habits and skills that can expand the opportunities for realization on the labour market. In addition, there is a need to improve living conditions and access to education, health and social services. The Roma minority is characterized by the largest number of large families, teenage mothers, people on long-term social assistance benefits, children placed in institutions, which also implies the need to provide social services.

Participants from vulnerable groups were included in the process of elaboration of the Strategy as an opportunity for their inclusion. Their basic needs could be met through the goals and measures set out in the CLD Strategy in promotion quality and sustainable employment, improve living conditions and providing social services.

The Clubs of people of retirement age and persons with disabilities, working in the most settlements on the territory of the LAG represents a form of social assistance. The clubs aim to maintain the social contacts of people of retirement age and people with disabilities as an opportunity for an active life. The needs of vulnerable groups can be met by introducing new and additional services - health, social and other services for vulnerable groups on the territory. The strategy envisages measures to promote such services on the territory, as well as leading to an overall improvement of living conditions and realizations of the territory and a fuller integration of vulnerable groups in the community. The strategy envisages measures to promote such services on the territory, as well as those leading to an overall improvement of living conditions and conversions on the territory and the fuller integration of vulnerable groups in the community.

4. Strategy goals:(not more than 10 pages)

4.1. Strategy goals and territory development priorities:STRATEGIC GOAL / VISIONThe transformation of the territory of the LAG Vazhod - Vetrino, Vulchi Dol, Provadiya into a sustainable rural area with developed tourism and services for the population, competitive local business and agriculture, improved living conditions with an active local community.PRIORITY 1: Development of agricultural and non-agricultural businesses with high added value.PRIORITY 2: Improving the appearance of the settlements, developing local identity and creating local tourist products for the development of the territory.

4.2. Specific goalsThese specific goals contribute to achieving the main Strategy priorities of the Strategy, through the measures, chosen by LAG for implementation.

PRIORITY 1: Development of high value agricultural and non-agricultural businesses.Specific goal 1.1: Increasing the local agriculture competitiveness and adding value to local agricultural products.Specific goal 1.2: Supporting the production and processing of area-specific agricultural value-added productsSpecific goal 1.3: Creating new working places and reducing poverty by investing in the non-agricultural businesses.

PRIORITY 2: Improving the appearance of the settlements, developing local identity and creating local tourist products for the development of the territory.Specific goal 2.1: Improving public infrastructure and access to public servicesSpecific goal 2.2: Creation of new attractions and accompanying tourist infrastructureSpecific goal 2.3: Utilization of local traditions and heritage for achieving of sustainable communities

4.3. Link between the Strategy of CLD and the characteristics of the specific territory, developed on the basis of the local needs and potential, in line with policies at national, regional and local level, including policies on desegregation and deinstitutionalization:

The implementation of an integrated approach through the Community-led Local Development Strategy on the territory of LAG will have an integrated impact on the different development sectors. This means appropriate combining and complementing the individual measures with a view to achieving a positive overall impact on the infrastructure, human, innovation and cultural potential of the territory.

The vision for the development of the integrated territory of the LAG Vazhod - Vetrino, Valchi Dol, Provadiya results from the defined opportunities and constraints of the actively engaged local community, with the specific local resources and social capital of the territory with the highest potential for development.

The general framework of the Common agricultural policy (CAP) for the period 2014-2020 refers to a more integrated, targeted and territorial approach to rural development. Rural measures are coordinated with those of the other Structural Funds, seeking the effect of synergy and active involvement of the local community in achieving the goals of a community-led local development strategy. The large set of existing instruments under the second pillar of the CAP is simplified to focus on supporting: competitiveness, innovation, knowledge-based agriculture, young farmers' entry, sustainable management of natural resources and balanced territorial development. The transformation of the territory of the East-Vetrino, Vulchi Dol, Provadiya LAG into a sustainable rural area with developed tourism and services for the population, competitive local business and agriculture, improved conditions her living with active local community. CLD can be a useful tool for empowering local communities, including disadvantaged groups, for improving the institutional capacity of local stakeholders, especially NGOs, and for fostering social innovation at local level.The achievement of the rural development goals, contributing to the Europe 2020 Strategy for smart,

sustainable and inclusive growth should be pursued through the following six Union Rural Development priorities, which reflect the relevant thematic goals of the CAP:

- Stimulating innovation, cooperation and development in rural areas;- Strengthening links between agriculture, food production, forestry and research and innovation,

including with a view to improving environmental management and environmental performance;- Encouraging of the quality, added value and innovation in the production, processing and marketing

of agricultural products.

EU priorities for rural regions development

Coordination in the CLD Strategy

The Rural Development Program 20140-2020 goals

Priority 2: Increasing the competitiveness of all types of agriculture and the viability of the farms;Priority 3: Encouragement of the organization of the food chain and risk management in agriculturePriority 5: Promotion of efficiency in raw materials and support the transition to a low carbon and climate resilient economy in the agriculture, food and forest sectors

PRIORITY 1: Development of agricultural and non-agricultural businesses with high added value.

Specific goal 1.1. Increasing the competitiveness of the local agriculture and adding value to local agricultural productsSpecific goal 1.2. Supporting the production and processing of area-specific agricultural value-added products.

First goal: ensuring sustainable and balanced growth in the production and processing of agricultural and forestry productsSecond goal: ensuring sustainable management and use of natural resources, preventing and adapting to climate changes

Priority 1:Stimulating of the transfer of knowledge and innovations in the areas of agriculture and forestry.

The selected goals and measures in the CLD Strategy are aimed at modernization and technological renewal of agricultural farms and other small and medium-sized enterprises on the territory.The strategy gives priority to projects involving innovation in manufacturing and the processing industry.

First goal:ensuring sustainable and balanced growth in the production and processing of agricultural and forestry products

Priority 6: Support for social integration, poverty reduction and rural economic development.

Encouraging the creation of quality employment and sustainable working places with improved quality of life and widespread social inclusion through the CLD approach.PRIORITY 1: Development of agricultural and non-agricultural

Third goal: stimulating the socio-economic development of rural areas in order to develop the economic potential, preserve demographic potential and contribute to the social inclusion of vulnerable groups and Roma people, economic recovery and

businesses with high added value.Specific goal 1.3. Creating new jobs and reducing poverty through investment in non-agricultural businesses.

PRIORITY 2: Improving the appearance of settlements, developing local identity and creating local tourism products for the development of the territory.

Specific goal 2.1. Improving public infrastructure and access to public services.Specific goal 2.2. Creation of new attractions and accompanying tourist infrastructureSpecific goal 2.3. Local traditions utilization and heritage to reach sustainable communities.

empower the process of depopulation and social exclusion.

The formulated strategic objective, priorities and specific goals are in accordance with the plan and strategic documents and policies at national, regional and local level:• The CLD Association will contribute to the following national development policy priorities as defined in

the Partnership Agreement: 3. Achievement of sustainable integrated regional development and harnessing local potential; 4. Development of the agricultural sector for food security and production of high value added products in the sustainable management of natural resources; 5. Support innovation and investment activities to increase the competitiveness of the economy.

• CLD Association of “Vazhod – Vetrino, Valchi dol, Provadiya” LAG is in line with and will contribute to the achievement of the objectives of the Varna Regional Development Strategy 2014-2020 and in particular:• Strategic goal 1. Achievement of smart economic growth by developing our own potential and

focusing on innovation and knowledge economy, combined with effective environmental protection, Priority 1.1. Improvement of the scientific and technological level of economy and innovation potential in the field / "knowledge economy" /; Specific Goal 1.1.3. Introducing of new technologies and innovations in small and medium-sized enterprises, incl. in backward peripheral municipalities, Specific goal 1.1.4. Encouraging individual and collective entrepreneurship to activate businesses in backward peripheral municipalities; Priority 1.3. Diversification of the tourist proposing and inclusion of the natural and cultural wealth on the whole territory of the district: Specific goal 1.3.1. Activation of tourism development on the whole territory of the district; Specific goal 1.3.2. Creating a specific regional tourism product based on cultural and natural wealth.

• Strategic goal 2. Improving the quality of life and alleviating social inequalities by increasing employment and income and optimizing health and social services, education and culture; Priority 2.1. Improving access to the labour market, increasing employment and income of the population: Specific goal 2.1.1. Increasing of the employment and incomes with a focus on youth employment; Specific goal 2.1.3. Poverty reduction and social inclusion of disadvantaged groups, especially in peripheral municipalities; Priority 2.2. Improving of the quality and access to health, education, social and cultural services and sporting events: Specific goal 2.2.1. Construction and renovation of sites for health and social services, for education, sports and cultural events, incl. by improving their energy efficiency; Specific goal 2.2.2. Improving of the quality of public services in educational, health, social and cultural institutions

• Strategic goal 3. Sustainable and integrated territorial development by improving the technical infrastructure, territorial connectivity, protecting the quality of the environment and strengthening the centre cities; Priority 3.3. Strengthening city centres, integrated urban development and urban development: Specific goal 3.3.1. Activation of tourism development in the whole territory of the district; Specific goal 3.3.2. Creation of a specific regional tourist product based on cultural and natural wealth.

The CLD Association of “Vazhod – Vetrino, Valchi dol, Provadiya” LAG is in compliance and will contribute to the achievement of the goals of the Municipal Development Plans of Vetrino, Vulchi Dol and Provadiya Municipalities;

The strategy is in compliance with the main strategic and regulatory documents at national level, applying them at the level of the Local Action Group and in line with the specifics of the territory.

The desegregation and deinstitutionalization policies are reflected and their implementation will be facilitated by the CLD Association of “Vazhod – Vetrino, Valchi dol, Provadiya” LAG, through the envisaged equal access to supporting investment on the territory, through the envisaged measures for creating sustainable employment and improving public infrastructure.

4.4. Description of the innovative features of the strategy:

The term innovation is most often defined as a new idea that has been proven successful in practice.In the local context, the CLD approach method itself generates new ways of thinking and acting - new methods of work and social innovation.The innovations in CLD on the territory of LAG may include new products, services, or implementation methods in a local context, and may have a multiplier or avalanche effect on the changes that the community wants to implement. There will certainly be innovations that find new ways to mobilize and leverage existing community resources and assets and create collaboration between different actors and sectors;In this sense, the Strategy will seek to introduce new ideas and approaches in the area rather than simply supporting and defending local interested groups.According to the definition of “Innovation of a CLD Strategy” in the applicable legislation, this is the inclusion in the CLP strategy of a new approach, method or means for its implementation, which have not been applied on the territory of the local community through:

a) opportunity to create a product or a service, that is new for the territory:

In the preparation of the Strategy of CLD of "Vazhod – Vetrino, Valchi Dol, Provadiya" LAG, the following opportunities for creation of new products for the territory were identified and exploited:- Creation of a qualitatively new integrated product for the territory, bringing together local products, cultural and natural material and immaterial heritage of the territory. The purpose of creating this product is to create the opportunity to attract tourists and stay as long as possible on the territory. This shall be achieved by investing to create additional attractions for tourists, attracting them to participate in cultural local events, and by investing in creating an active environment for rest, relaxation and entertainment.

b) inclusion of activities / measures that provide possibilities for a new form of use of natural resources for the territory

LAG will promote projects and activities, aimed at improving product design and introducing of production processes that use materials more economically, as well as the introduction of green technologies in agriculture and processing plants. The project evaluation criteria set an advantage for projects that provide for investment costs to improve the energy efficiency of an enterprise, leading to the protection and economical use of natural resources.

c) new method and /or manner to solve local problems and weaknesses on the territory:Development and inclusion of new own measure 22 “Protection, development and volarization of specific local identities and culture” into the Strategy. This is explicitly innovative manner to solve local problems and weaknesses. Up to the present moment no strategic document on the territory took into enough level of consideration the specific local products of cultural heritage. The measure aims at volarization of those local products and their integration into creation of new tourist product on the territory, based on specific local cultural heritage.LAG intends to develop new methods and manners for active inclusion of the Community and the Interested Parties in the process of solving the territory’s problems.- interactive informational platform for public – private partnerships and MIG participants, incl. with possibilities for online trainings, exchanges, work in network, where people with disabilities are included;- development of informational terminals in the settlements on the territory;- creation of investment profile on the LAG territory;- holding informational activities and meeting with any potentially Interested Party;- holding days of multiethnical and multi-cultural interaction.The Strategy of the Community-lead Local Development of LAG shall connect interested parties with similar subject of activities, respectively problems, uniting them and promoting discussions. Such exchange of experience and knowledge shall lead to generation of new ideas by the participants.

d) determining assessment criteria for the projects, related to projects innovationAn objective criteria for innovation of the project proposal is foreseen for the assessment of projects as per the individual measures 4.1., 4.2. and 6.4.1. of the Program for Development of Rural Regions, in order for new practices and / or service and /or product to be introduced on the territory, when more than 30 % of the eLAGible investment expenses for the project are related to innovations introduction in agriculture or in a Company.

4.5. Goals’ hierarchy – including objectives for final products or results:

Measure 6.4.

The achievement of the strategic target is foreseen through two main priorities, each with three particular objectives. They may be achieved through the implementation of different measures:

Priority 1: Development of agricultural and non-agricultural business with high added value.Specific target 1.1. Promotion of the local agriculture competitiveness and adding value to local farming products

Measure 4.1. „ Investment in farms“Specific objective 1.2. Aiding the production and reprocessing of farm products of local origin with high value

Measure 4.2. „ Investments in reprocessing / marketing of farm products“Specific objective 1.3. Creation of new jobs and poverty decrease through investments in non-farming business

STRATEGIC OBJECTIVETransforming the territory of “Vazhod – Vetrino, Valchi dol, Provadiya” LAG into sustainable rural

region with well-developed tourism and services for the population, competitive local business and agriculture, as well as improved living conditions and active local community.

PRIORITY 1: Development of agricultural and non-

agricultural business with high added value

Specific purpose

1.1.

Promotion of the local agriculture competitive

ness and adding a

value to the local farm products

Specific purpose

1.3. Creation of new jobs

and decrease of

poverty through the

means of investment

in non-farming

business

PRIORITY 2: Improvement of the appearance of the

settlements, development of the local identity and creation of local tourist products to

develop the territory

Specific purpose

2.1.

Improve-ment of the

public infrastructu-

re and access to

services for the publicity

Specific purpose

2.2.

Creation of new

attractions and related

tourist infrastruc-

ture

Specific purpose

2.3. Utilization

of local traditions

and heritage for

achievement of

sustainable communi-

ties

Measure 4.1.

Specific purpose

1. 2.

Aiding the production

and reprocessing

of farm products of local origin with high

value

Measure 4.2. Measure 7.5.Measure 7.2. Measure 22

Measure 6.4. „Investments in aiding non-farming activities“

PRIORITY 2: Improvement of the appearance of the settlements, development of the local identity and creation of local tourist products to develop the territory.Specific objective 2.1. Improvement of the public infrastructure and access to services for the publicity

Measure 7.2. „Investments in creation, improvement or extension of small scale infrastructure ”Specific objective 2.2. Creation of new attractions and related tourist infrastructure

Measure 7.5. „Investments in public usage of the infrastructure for the purposes of recreation, tourist infrastructure”

Specific objective 2.3. Utilization of local traditions and heritage in order to achieve sustainable communities Measure 22 „Preservance, development and volarization of specific local identities and culture”

The specific objectives planned and the development priorities chosen are mutually connected and their realization shall have integrated effect onto the development of the territory and the strategic target achievement.The main purpose of the present strategy, both on national and European level, is the creation of new jobs and poverty decrease, to be achieved through investments for development of the non-farming business and also by all others specific objectives.

5. Description of the measures:(not more than 4 pages per a Measure)

Measures and activities for each of the funds separately:Rural Development Program 2014-2020 (EAFRD)

GENERAL TERMS AND CONDITIONS AS PER THE MEASURES OF THE COMMUNITY-LED LOCAL DEVELOPMENT STRATEGY OF THE PROGRAM FOR RURAL REGIONS DEVELOPMENTAn applicant / recipient of aid and / or its legal or authorized representative shall not be eLAGible if not in line with the conditions, determined in items 1-18 of Chapter 18 “ELAGible applicants” of the Guidelines for determining terms and conditions for applications and implementation of the approved Strategies for Community-led Local Development, excl. i. 1 for physical entities and Municipalities. For projects, funded by EAFRD, “Vazhod – Vetrino, Valchi dol, Provadiya” LAG shall determine in its procedure if the applicant for the financial aid should only declare the fulfilment of the requirements in i. 1-18 of the “ELAGible Applicants” Chapter at the moment of application with Annex 1 or to provide documents, proving so.

ELAGible expenses as per the measures:1. investment expenses as per Art. 45 of Regulation (EU) № 1305/2013;2. other eLAGible expenses, related to the fulfilment of operations as per Regulation (EU) № 1305/2013 and the Strategy priorities;The maximum size of the eLAGible expenses for a project under the Strategy for Community-led Local Development, funded by EAFRD, is to the BGN equivalency of 200 000 EUR. The BGN equivalency shall be calculated as per exchange rate of 1,9558 BGN for 1 EUR.The maximum size of the financial aid and the aiding intensity in percent are in line with the financial parameters and terms and conditions of each measure.The expenses for implementation of projects, funded by EAFRD shall be repaid to 31.12.2023.The investment operations need to be preceded by a review on the necessity of an assessment of the expected

impact on the environment and if needed, assessment of the expected impact, in order to qualify for aid from EAFRD.IneLAGible expenses as per the Measures:The following expenses are not eLAGible for funding from EAFRD:1. debt interests;2. purchase of unbuilt and built plots of market value more than 10 / 100 of the total eLAGible expenses;3. for value added tax, except the unrecoverable one;4. for regular replacement and maintenance;5. for interests and commissions, profit of leasing company, expenses for re-financing interests, operative and insurance expenses as per lease contract;6. for lease, except financial lease, where the recipient of the aid becomes owner of the respective asset not later than the date of making order for intermediate or final payment.7. overhead costs;8. insurances;9. purchase of second hand equipment;10. done before 1st January 2014;11. contributions in kind;12. investments in agriculture – purchase of production rights and payment, purchase of animals, purchase of annual plants and its plantation;13. for investment, where it is found out it would have negative impact of the environment;14. done before the submission of the application for the financial aid, notwithstanding if all related payments are done, excluding the expenses for pre-project research, fees, fees for architects, engineers and consultancy activities, fulfilled before 1st January 2014;15. construction-assembly works and creation of permanent plantation, done before inspection of LAG;16. surpassing the referential expenses, fixed in Art. 41 of Decree of the Council of Ministries No189;17. such determined in the measures of The Program for Development of Rural Regions 2014 - 2020 г. except those given in i. 1 - 15.No financial aid shall be provided for purchase of a motor vehicle as per a project, funded, fully or partially, by EAFRD. Exclusion from this rule are the specialized transport means, including such, eLAGible for funding as per the Ordinances for application of the respective measures / sub measures of the Program for Development of Rural Regions 2014 – 2020 and fully equipped for the purposes of the investment.No financial aid shall be provided for construction and modernization of accommodation places with more than 20 premises and where the financial aid value is over 50 000 BGN with VAT included, funded fully or partially by EAFRD or the Requirements of Art. 79, Para 2 of Ordinance No 22 are not met.No expenses for acquisition of heavy-goods vehicles for road transport as per Art. 3, i. 2 and 3 of Regulation (EU) 1407 / 2013 of the Commission dated 18th December 2013 shall be funded, regarding the application of Articles 107 and 108 of the Contract for the EU functioning to the de Minimis aid (SG, L 352/1 dated 24 th

December 2013. )In case of a change in the determined terms and conditions for application of a given measure in the Program, these variable conditions shall apply also for the measures of the Strategy for Community-led Local Development of LAG.Applicable regime for minimum / state aidsFor a measure of the Community-led Local Development Strategy, included in the Program for Rural

Regions Development 2014 – 2020, the terms and conditions for state aid for the respective measure in the Program for Rural Regions Development 2014 – 2020 shall apply.The rules for state aid, determined in Regulation (EU) No 1407 / 2013 of the Commission dated 18 December 2013 regarding the application of Art. 107 and 108 of the Contract for EU functioning to de Minimis aid (SG, L352/1 dated 24 December 2013г) shall apply for a measure of the Community-led Local Development funded fully or partially by EAFRD, not included in the Program for Rural Regions Development 2014 – 2020.In case of implementation of a project, fully or partially funded by EAFRD, including only non-profit activities and implemented by a person, registered as per the Law on Legal Entities with non-profit purpose or as per the Law for Community Centres, Art. 107 and Art. 108 of the Law on EU functioning, Art. 107 and Art. 108 shall not apply.

Minimum and maximum period for implementation of the Strategy for Community-led Local Development.The Strategy for Community-led Local Development of “Vazhod – Vetrino, Vachi dol, Provadiya” LAG shall be developed for the period up to 31 December 2020.The expenses are eLAGible for EAFRD funding only when the Agriculture State Fund actually has paid the respective aid up to 31st December 2023.Measure 4.1. „Investments in agriculture farms”

Objectives: Promotion of the efficiency of the agriculture farms, increase in incomes from agriculture and providing jobs through the means of: restructuring and development of available material capacities in the farms; encouragement of introduction of new technologies in the production as well as modernization of the physical capital; preservance of the environment components; protection of the EU standards and improvement of the conditions in the agricultural farms; promotion of the cooperation between the agricultural farmers.Measure scope: 1. Geographical: LAG territory; 2. Scope of investments as per the Measures, tangible and intangible assets, which: а) correspond to the Community Standards) corresponds to the scope of the Measures as per the Program for Rural Regions Development;ELAGible activities: ELAGible are only activities on the LAG territory, resulting to improvement of the whole agricultural activity:1. Investments for modernization and mechanization /investments in physical assets/, directly related to reduction of production expenses and promotion of the production rate;2. Investments for modernization and mechanization /investments in material assets/, directly related to reduction of production expenses and promotion of production rates in relation to the implementation of the activities as per Measures “Agroecology and climate” and “Biological agriculture”.3. Investments to achieve compliance with newly-introduced Community standards, applicable for the respective farms;4. Investments, directly targeting energy efficiency enhancement for the farms;5. Investments for storage of agriculture production, in order to preserve its quality;6. Investments in machineries and devices for environment protection, including manure storage.

7. Investments in real estates, related to the farms’ activity.8. Investments for creation and / or replantation of perennials, vineyards, trees related to honey production and quickly growing bushes and trees for production of bioenergy;9. Investments for renewable energy sources for the farms’ needs;ELAGible applicants – agricultural farmers, in line with the following requirements:1. to be registered as agriculture farmers, as per Art. 7, Par 1 of the Law on Support for Agriculture Producers;2. minimum standard production volume of the farm of not less than the leva equivalency of 8000 Euro;3. if they are legal entities, they:а) have received income from agriculture activities and support as per the scheme for single payment for area, including income from the received public financial aid, directly related to the implementation of these activities, or income from reprocessing of agriculture production or services, directly related to agriculture activities, or received public financial aid for the previous or the current financial year;b) are registered as per the Commercial Law, the Cooperation Law, the Law on ReLAGion or they are created as per the Law for the Agriculture Academy.c) the are recognized groups of producers and recognized organizations of agricultural producers or such, that are approved for financial aid as per Measure 9 „Establishment of groups and producers’ organizations “ if the Program for Rural Regions Development 2014 – 2020.Only applicants with headquarters, if legal entity and permanent address for physical entities on the LAG territory shall be admitted.ELAGible expenses:1. construction and reconstruction of buildings and other properties, used for farming, including such, used for protection of the environment components;2. purchase, including through the means of financial lease, and / or installation of new machineries, devices and equipment, needed for the improvement of the agriculture production process, including protection of environment components, heat and/ or electrical energy recipient, storage and preparation for sale of agriculture production;3. creation and / or replantation of perennials and vineyards, trees for honey production, other quickly growing bushes and trees for bioenergy production;4. expenses to achieve correspondence with newly-introduced EU standards, including through the means of financial lease;5. of: equipment, attached inventory for bee-keeping and the respective equipment, required for honey and honey products production, as well as bee-queens growing, including through the means of a financial lease;6. expenses for achieving a compliance with existing EU standards;7. purchase of land, needed for the project implementation, in connection with construction / modernization of buildings, premises and other fixed material assets, designated for agricultural production activities and / or plantation and / or replantation of perennials;8. purchase of buildings, premises and other properties, needed for the implementation of

the project, designated for the agriculture production activities on a rural region territory;9. purchase, including through financial lease, of specialized agricultural vehicles such as: trucks, milk storage tanks, refrigerated production vehicles, live animals and poultry vehicles;10. expenses for achievement of compliance with internationally recognized standards, related to the introduction of quality management systems in agriculture farms, introduction of good production practices, preparation for certification;11. purchase of software, including financial lease;12. for know-how, acquisition of patent rights and licenses, registration of trademarks and processes, required for the project preparation and fulfilment;13. expenses, related to the project, incl. expenses for pre-project research, fees, fees for architects, engineers and consultants, consultations for ecological and economical sustainability of projects, research on technical applicability of the project, done both in the preparation stage and the implementation stage, not surpassing 12 / 100 of the total size of the eLAGible expenses for a project, as per i. 1-12.The eLAGible expenses for consultancy services, related to the project preparation and management shall not be surpassed.1. 1 /100 of the eLAGible expenses – for projects with investments for agriculture machineries and / or expenses as per i. 10 – 12;2. 5 /100 of the eLAGible expenses as per i. 1 - 12– for projects with included investments for creation of perennials and / or construction-assembly works and /or equipment and / or machineries, but not more the leva equivalency of 35 000 Euro;The expenses for purchase of land, building and other properties may not surpass 10/ 100 of the total amount of the eLAGible expenses as per i. 1-6 and i. 9-12.The expenses as per i. 13 are eLAGible, if done not earlier than 1st January 2014 with no difference if all related payments are done.The activities and the expenses as per the projects, excluding the expenses as per i. 13 are eLAGible, if the y are done after the application for the aid.

Additional requirements for the projects: to foresee activities on restriction of soil degradation and enhancement of the soil

fertility; to observe and apply the enactments of on European and National level for

protection and recovery of the soil fertility; to use the best practices in the agricultural and forest regions;

Those requirements are applicable for projects with investments in the following activities:

1. Investments for modernization and mechanization /investments in material assets/, directly related to reduction of production expenses and promotion of the production rate;2. Investments for modernization and mechanization /investments in material assets/, directly related to reduction of production expenses and promotion of production rates in relation to the implementation of the activities as per Measures “Agroecology and climate”

and “Biological agriculture”.When the activities are directly related to purchase of equipment for soil cultivation.

the activities as per the beneficiaries’’ projects to be in line with Directive 91/676/ЕЕС for protection of the waters from nitrate contamination from agricultural sources

It is applicable for projects with investments in activity “Investments in machineries and devices for environment protection, including storage of manure”.Financial parametersMinimum amount of the total eLAGible expenses for a project– 29 337 BGNMaximum amount of the total eLAGible expenses for a project – 391 160 BGNMaximum size of the subsidy per a project– 100 000 BGN

Intensity of the financial aidThe financial aid is to the size of 50 / 100 of the total size of the expenses, eLAGible for financial aid. The financial aid shall be increased with 10 / 100 for:1. projects, made by young farmers;2. integrated projects, including such, related to merger of producer organizations;3. projects for collective investments, presented by legal entities, formed by 6 to 10 agriculture farmers;4. for investments, fully related to the engagements of the Applicant as per Measure 11 “Biological agriculture “of Program for Rural Region Development 2014 – 2020 or similar engagements as per Measure 214 “Agro ecological payments”, “Biological agriculture” direction of Program for Rural Region Development 2007 – 2013 and for applicants, that applied for aid as per Measure 11 “Biological agriculture” of Program for Rural Region Development 2014 – 2020 at the application date and at the moment of submission of an enquiry for payment they are improved and fulfil their obLAGations as per Measure 11 “Biological agriculture” Program for Rural Region Development 2014 – 2020.5. for projects for collective investments, presented by legal entities, including more than 10 agriculture farmers and / or groups / organizations of producers.Maximum combined aid – 60 % of the total size of the expenses, eLAGible for financial aid.Size of the financial aid /Budget of the Measure/ - 600 000 BGN.

Criteria for project selection Points1. The applicant is an young farmer, who is a physical entity or a sole trader between 18 – 40 years, as of the application date 20

2. The activities as per the project are in the area of fruit and / or vegetables production and / or perennials and / or animal breeding: - over 50 % of the investments are in the given sectors – 5 points – over 75 % of the investments are in the given sectors – 10 points.

10

3. The size of the farm – standard production volume /spv/ in Euro- from 8 000 to 30 000 EUR spv – 20 points- from 30 001 to 150 000 EUR spv – 10 points- over 150 001 EUR spv - 0 points

20

4. The project creates new permanent jobs: - for 1 new working place – 3 pts. – more than 1 working place – 5 pts. – working place for min. 2 representatives of the vulnerable groups – 10 pts.

10

5. Innovation – introduction of a practice that is new for the territory and / or service and / or product in the Company – over 30 % of the eLAGible investment expenses related to innovations in farming

10

6. Minimum 10 % of the eLAGible investment expenses for improvement of the Company’s energy efficiency.

10

7. The applicant has not received aid from EU for such investment until now. 58. The project includes activities with positive impact for the environment:- over 30 % from the investments are for environment protection activities - 3 pts. - over 50 % from the investments are for environment protection activities - 5 pts.

5

9. Collaboration with local suppliers of goods / services is foreseen 10

TOTAL 100Measure 4.2"Investments in reprocessing / marketing of farm products”

Objectives: Increase of the share of food industry companies within the LAG economy and creation of new jobs through the means of: better use of production factors; introduction of new products, processes and technologies, including short supply chains, enhancement of quality and safety of foods and their transparency; achievement of EU compliance; better environment protection;Scope of the measures:1. Geography scope of the Measures: the territory of “Vazhod – Vetrino, Valchi dol, Provadiya” LAG;2. Scope of the Measures investments: tangible and intangible assets, which:а) Correspond to the Community standards, referring to the respective investmentb) Improve the whole activity of the Companyc) Correspond to the scope of the Measures as per the Program for Rural Regions DevelopmentELAGible activities: ELAGible are only activities on the LAG territory and for:1. Investments in processes and technologies for products manufacturing, including such related to short supply chains;2. Investments, related to construction, acquisition and modernization of buildings and other properties, required for the production and marketing process.3. Investments in new machineries and equipment, in order to improve the production and marketing process.4. Investments in assets for storage, reprocessing, packaging, cooling, frosting and drying in order to preserve quality of the production and raw materials;

5. Investments in specialized transport means for transportation of raw materials and / or ready production, including freezer transport means;6. Investments, related to launching quality management systems;7. Investments for production of energy from renewable sources for own consumption;8. Investments to reach compliance with Community standards, including treatment facilities.ELAGible applicants1. agricultural farmers;2. recognized groups of producers and recognized organizations of agricultural producers or such, that are approved for financial aid as per Measure 9 „Establishment of groups and producers’ organizations “ of the Program for Rural Regions Development 2014 – 2020;3. sole traders and legal entities, different from the applicants as per i. 1 and 2;The applicants as per i. 1, 2 and 3 shall be registered as per the Commercial Law or the Cooperation Law.

ELAGible are only clients with headquarters, for legal entities and permanent address, for physical entities based on the LAG territory.

ELAGible expenses:1. construction, acquisition and modernization of buildings and other properties, related to production and / or marketing, including such used for protection of environment components;2. purchase, including through the means of a financial lease, and / or installation of new machineries, devices and equipment, needed for the improvement of the production and marketing process, including:a) reprocessing, packaging, including cooling, refrigerating, drying, storage etc., of raw materials and production;b) production of new products, introduction of new technologies and processes;c) protection of environment components;d) production of energy from renewable sources for the own company needs, including through the means of reprocessing of plant and animal primary and secondary bio-mass;e) enhancement of energy efficiency and improvement and control over the quality and safety of raw materials and foods; 3. purchase of land, needed for the project implementation, in connection with construction / modernization of buildings, premises and other fixed material assets, designated for production needs;4. purchase of buildings, premises and other properties, needed for the implementation of the project, designated for the production activities on the LAG territory;5. purchase, including through financial lease, of specialized transport vehicles, including refrigerating ones, for transport of raw materials or ready production, used and produced by the Company;6. construction / modernization of laboratories, owned by the applicant, located on the Company site and directly involved with the production process needs, including through financial lease;

7. material investments for achievement of compliance with newly-introduced EU standards, including through the means of financial lease;8. expenses for achievement of compliance with internationally recognized standards, related to the introduction of quality management systems, introduction of good production practices, preparation for certification, only when those expenses are part of a common project of the applicant;9. purchase of software, including financial lease;10. for know-how, acquisition of patent rights and licenses, registration of trademarks and processes, required for the project preparation and fulfilment;11. expenses, related to the project, incl. expenses for pre-project research, fees, fees for architects, engineers and consultants, consultations for economical sustainability of projects, done both in the preparation stage and the implementation stage, not surpassing 12 / 100 of the total size of the eLAGible expenses for a project, as per i. 1-10.The expenses, eLAGible as per i. 11 shall not surpass the following values:1. for consultancy services, related to the project preparation and management, as part of the expenses under i. 11 as they shall not surpass 5 / 100 of the eLAGible expenses as per i. 1 - 10, but not more than the leva equivalency of 35 000 EUR;2. expenses for preparation of technical and work projects in cases of construction and assembly works, as part of the expenses of i. 11 they may not surpass 2,25/100 of the eLAGible expenses as per i. 1 - 10;3. expenses for preparation of a technological project, if not included in the expenses as per i. 2, as part of the expenses under i.11 they may not surpass 2,25/ 100 of the eLAGible expenses as per i. 1 - 10;4. expenses for construction supervision as part of the expenses under i. 11 they may not surpass 1/100 of the eLAGible expenses as per i. 1 - 10;5. expenses for pre-project researches, legal services and fees for architects and engineers, excluding those under i. 1, 2, 3 and 4, as part of the expenses under i. 11 may not surpass 1,5/100 of the eLAGible expenses as per i. 1 - 10.The expenses for purchase of land, buildings and other properties under i. 3 and 4may not surpass 10/100 of the total size of the eLAGible expenses under i. 1 and 2 and i. 5 - 10.The expenses under i. 11 shall be eLAGible, if done not earlier that 1 st January 2014, notwithstanding if all related payments are made.Activities and expenses as per the project, excluding those from i. 11, are eLAGible, if done after the application, notwithstanding if all related payments are done.The expenses for purchase of land, buildings and other properties are eLAGible for funding to the size of their tax valuation, valid at the date of application submission. In case that at the acquisition date the tax valuation is to a lower value, expenses to this size shall be eLAGible for funding.

Purchase of assets through the means of a financial lease is eLAGible, if the user of the aid becomes an owner of the respective asset not later than the date of submission of enquiry for intermediate or final payment of this asset.

Financial parametersMinimum size of the total eLAGible expenses for a project – 29 337 BGNMaximum size of the total eLAGible expenses for a project – 391 160 BGNThe intensity of the financial aid for the approved projects is to the size of 50 / 100 of the total size of the projects’ expenses, eLAGible for financial aid, presented by micro-, small and medium enterprises, and for projects, presented by large companies, the financial aid is to the size of 40 / 100 of the total size of the expenses, eLAGible for financial aid. The size of the aid shall be increased with 10 % of the total size of the eLAGible expenses for projects of the line of European Innovation Union.Size of the financial aid /budget of the Measure/ - 300 000 BGN

Criteria for selection of projects Points

1. The Company is classified like:- a micro company, as per the Recommendation of ЕO 2003/361/ЕO and determined as such in line with Art. 3 and Art. 4 of the Law on Small and Medium Enterprises – 30 points- a small company, as per the definition in Art. 3 and Art. 4of the Law on Small and Medium Companies - 20 points

30

2. Projects, promoting the integration of the agricultural farmers – The company of the applicant foreseen in its business plan reprocessing of minimum 50 % of own raw materials or raw materials of other members of the group / organization of producers (agriculture products)

10

3. Projects with investments and activities, focused in sensitive sectors – the reprocessed raw materials shall be of plant or animal origin:- over 50 % of the investment – 5 pts.;- over 75 % of the investment – 10 pts.

10

3. The project creates new permanent jobs: - up to 3 positions – 3 points; - more than 3 positions – 7 points; - over 3 positions for people from the vulnerable groups – 10 points

10

4. Minimum 10 % of the eLAGible investment expenses for promotion of the energy efficiency of the Company

10

5. Innovation – introduction of a practice and / or service and / or product in the Company that is new for the territory – over 30 % of the eLAGible investment expenses, related to innovations

10

6. The applicant has never received an EC aid for such an investment 10

7. The Project includes activities of positive environment impact:- over 30 % of the investments are targeting activities of environment protection - 3 pts.; - over 50 % of the investments are targeting activities of environment protection - 5 pts.

5

8. The project foreseen investments for production of final products of meat

raw materials, including short supply chains5

TOTAL 100Measure 6.4.1“Investments, aiding non-agricultural activities”

Objective: Achievement of sustainable economic development of the territory and opening new jobs.Scope of the measure:1. Geography scope: the whole territory of “Vazhod – Vetrino, Valchi dol, Provadiya” LAG;2. Scope of the investments: The Measure provides aid for material and non-material investments of agricultural farmers and micro companies or micro companies for creation and development of non-agricultural activities.ELAGible activities: ELAGible are only activities on the LAG territory and targeting:1. Tourism development (construction and renovation of tourist sites and development of tourist services);2. Production or sale of products, not listed in Annex 1 of the Contract for EU Functioning (notwithstanding of the products and materials imposed);3. Development of services in all sectors (for example: children care, elder people, people with disabilities, health services, accountancy and auditor services, veterinarian services, IT services, etc.);4. Development of crafts (including services, related to participation of visitors in different craft activities) and other non-agriculture activities.No activities shall be funded, if they are ineLAGible for aid as per the line of the public funds, such as gambling, production of forbidden and harmful products, etc.ELAGible applicants – Agricultural farmers or micro companies, registered as sole-traders or legal entities as per the Commercial Law, the Law on Cooperations or the Law on reLAGions, as well as physical entities, registered as per the Law on Crafts.The farm of the applicants, agriculture farmers, shall be to a standard production volume of over 8 000 EUR. When determining if a Company is a micro company, the definition of Recommendation 2003/361/ЕC of the Commission should be observed. The applicants shall present a business plan, showing economic viability of the investment for a period of 5 years /10 years for construction-assembly works/.ELAGible are only applicants, whose headquarters, if legal entities or permanent address, if physical entities, is based on the LAG territory.ELAGible expenses1. Construction, acquisition and renovations of properties;2. Purchase, including on lease, new machineries and equipment, up to the assets’ market

value;3. Total expenses, related to the expenses for items 1 and 2, for example fees for architects, engineers and consultants, related to the ecology and economy sustainability, including researches for technical feasibility;The expenses under i. 3 may not surpass 12 % of the expenses amount as per i. 1, 2 and 4.4. Non-material investments: acquisition and creation of software and acquisition of patents, licenses, copyrights and trademarks.Current expenses are not eLAGible for the aid.The funding does not cover expenses for construction and reconstruction of accommodation establishments, when in result of the project activities:1. no internet page with an option for online booking is created or functioning for the site;2. the internet page does not consist current information for the premises and the amenities, including picture material;3. no accommodation price for the respective period is listed;4. no link of the page as per i. 1 in the LAG internet site and on a specialized tourist site.The expenses are eLAGible only if done after the submission of the application for the aid, excluding the general expenses.Advance payments to the size of 50 % of the approved financial aid are possible.

Financial parametersMinimum value of the eLAGible expenses – 19 558 BGNMaximum value of the eLAGible expenses for the project– 391 160 BGNMaximum size of the aid for one project – 100 000 BGN

Intensity of the financial aidThe financial aid shall not surpass 50 % of the total eLAGible expenses, in line with the requirements of Regulation (EU) No 1407 / 2013 of the Commission dated 18 December 2013 on the application of Art. 107 and Art. 108 of the Contract of the EU Functioning to the “de minis” aid.The intensity of the aid as per project for tourism development (construction and reconstruction of tourist sites and development of tourist services) may not surpass 5/100 of the total eLAGible expenses.

The size of the financial aid /the Measure budget/ - 500 000 BGNCriteria for selection of projects Points

1. Project in the area of household and / or social and /or health / incl. veterinarian services

10

2. Projects for production activities 10

3. Projects for development of integrated rural tourism 10

4. Projects, presented by young entrepreneurs, up to 40 years including 5

5. The project foresees investments for production of final products, which shall be realized in order to promote the LAG territory and promote the territorial identity:- The project includes production of meat products (non-food) on the LAG territory – 5 pts.- The project includes investments in productions, innovative for the territory– 5 pts.- The project activities shall affect more than one settlement - 5 pts.

15

6. The project creates new permanent jobs- up to 2 new positions – 5 pts.- more than 2 new positions – 7 pts.- more than 2 mew positions, incl. for representatives of the local vulnerable groups - 10 pts.

10

7. Innovation – introduction of a practice and /or service and /or product, that is new for the territory

10

8. The project includes activities with positive impact on the environment:- more than 30 % of the investments are focused on activities protecting the environment - 3 pts.- more than 50 % of the investments are focused on activities protecting the environment - 5 pts.

5

9. The project offers unique production and services, being unique and specific for the territory identity.

10

10. The applicant had implemented activity for at least 3 years before the application date

5

11. The project is to the total value /together with the co-funding from the applicant/:- up to 50 000 BGN – 10 pts.- up to 100 000 BGN – 5 pts.

10

TOTAL 100Measure 7.2. Investments in creating, enhancing or expanding all types of small-scale infrastructure

Target: To improve basic services for the population and the infrastructure in the villages.

Scope of the measure:1. Geographical scope of the measure – the whole territory of the LAG “Vazhod – Vetrino, Valchi dol, Provadiya”;2. Scope of investments as per the measure – the measure provides support for investments aimed at improving the basic services for the population and infrastructure throughout the whole territory of the LAG “Vazhod – Vetrino, Valchi dol, Provadiya”. Support is provided for the establishment of basic services pertaining to a settlement or group of settlements and

the related provision / rehabilitation of local small – scale infrastructure.ELAGible activities: Only activities within the LAG’s territory are eLAGible and are aimed for:

1. Construction, reconstruction and / or rehabilitation of new and existing municipal roads, streets, sidewalks, and their facilities and accessories;2. Construction and / or renovation of areas for general public use, designed to permanently meet public needs;3. Construction, reconstruction, repair, equipment and / or furnishing of social infrastructure for the provision of services that are not part of the process of deinstitutionalization of children or adults, including transport means;4. Reconstruction and / or repair of municipal buildings, where public services are provided, in order to improve their energy efficiency;5. Construction, reconstruction, repair, restoration, purchase of equipment and / or furnishing of objects related to cultural life, incl. mobile ones, incl. and activities for vertical planning and improvement of adjacent spaces;6. Reconstruction, repair, equipment and / or furnishing of municipal educational infrastructure of local importance.Investments in the construction, reconstruction, repair, purchase of equipment and / or furnishing of cultural centres, theatres, community centres, libraries, museums, galleries, exhibition halls and other objects related to cultural life are eLAGible if they are not declared monuments of culture of national and global importance;Investments for the reconstruction, repair, equipment and / or furnishing of educational infrastructure of local importance in rural areas are eLAGible if they are in line with the Ministry of Education and Science strategy and are not state educational infrastructure.ELAGible applicants: 1. Municipalities from the territory of the LAG for all eLAGible activities. 2. Non-profit legal entities from the territory of the LAG for activities related to social and sports infrastructure and cultural life; 3. Community centres from the territory of the LAG for activities, related to cultural life.

ELAGible costs1. For construction, reconstruction, rehabilitation, building, renovation, repair and / or restoration of buildings and / or premises and / or other real property, in accordance with the eLAGible activities for support;2. Purchase of equipment and furniture up to their market value, including through financial leasing, in accordance with the eLAGible activities;3. Acquisition of computer software, patent and copyrights, licenses, registration of trademarks, up to their market value.4. Costs, related to the project, incl. costs for fees for architects, engineers and consultants, consultations on the economic and environmental sustainability of the project, incurred both during the preparation on the project before the application and during its implementation, which may not exceed 10 percent of the total eLAGible project costs included in items 1, 2

and 3.The eLAGible costs under item 4 may not exceed the following amount:

1. For consultancy services, related to the preparation of the project, as a part of the expenses under item 4 may not exceed 1 percent of the eLAGible expenses under items 1, 2 and 3;

2. For consultancy services, related to the project management, as part of the expenses under item 4 may not exceed 1 percent of the eLAGible expenses under items 1, 2 and 3;

3. The costs of preparing a technical and / or work design in cases of construction and assembly activities, as part of the costs, under item 4 may not exceed 5 percent of the eLAGible costs under item 1;

4. The costs of construction supervision, as part of the costs under item 4 may not exceed 2 percent of the eLAGible costs under item 1;

5. The costs for copyright supervision, as part of the costs under item 4 may not exceed 1 percent of the eLAGible costs under item 1.

The expenses under item 3 are eLAGible only if the expenses under item 1 are applied for and are necessary for the achievement of the objectives.

The expenses under item 4 are illegible if they have been made not earlier than January 1, 2014, regardless of whether all related payments have been made.Advance payments of up to 50 % of the public aid related to the eLAGible expenditure approved are illegible. For projects for which the beneficiaries are contracting authorities under the Public Procurement Law, the advance payment is eLAGible as follows:• Up to 12 % of the value of the approved public aid under the project for common costs and in the presence of documents from the procedure for selection of contractor (s), conducted in accordance with the Public Procurement Law;• A difference of up to 50% of the value of the approved public aid under the project after carrying out all the procedures and concluding a contract for the selection of contractor (s) under the Public Procurement Law;The VAT costs are eLAGible where they are not refundable in accordance with national VAT legislation.

Financial parametersMinimum eLAGible project costs – BGN 9 779Maximum amount of eLAGible costs for a project is BGN 391 160

Financial aid intensityThe financial aid amounts to 100 percent of the total eLAGible costs of project that do not generate net income after the investment has been made. The financial assistance is 100 per cent of the total amount of the eLAGible for financial support project expenses, which after the investment will generate net income, but the amount of expenses, eLAGible for

financial support for the project shall not exceed the BGN equivalent of EUR 50.000.The amount of the financial aid for projects that will generate net income after the investment has been based on a cost-benefit analysis. When implementing a project involving only non-profit activities and executed by a person, registered under the procedure of the Non-Profit Legal Entities Act or under the National Community Centres Act, Articles 107 and 108 of the Treaty on the Functioning of the European Union shall not apply.

Amount of the financial aid /measure budget / - 900 000 BGN

Selection criteria for projects Points1. The project activities are carried out in settlements outside the municipal centres

10

2. The project proposes new initiatives / incorporates innovative elements to improve the quality of life in the area

10

3. The project is aimed at meeting the needs of large groups of people- Up to 500 people – 5 points- More than 500 people – 10 points

10

4. The applicant is:- municipality – 5 points- non-profit legal entity or community centre – 10 points

10

5. The project envisages activities and investments, related to the overall improvement of the appearance of the settlements

10

6. The project activities are for the development / provision of services to vulnerable groups of the population.

10

7.Project activities include the construction of accessible infrastructure and / or socialization of the environment for people with disabilities

10

8. Project evaluation /feasibility, quality and compatibility with the objectives and priorities of the LAG Strategy- the project is realistic, well-grounded and feasible – 5 points- The project contributes to the achievement of the objectives and priorities of the LAG Strategy – 10 points- The project envisages and clearly states the actions of the beneficiary for sustainability for a minimum of 5 years – 5 points

20

9. The project solves a problem, identified in the municipal development plan. 5

10. Applicant’s experience – the applicant has completed at least 1 project 5

TOTAL 100

Measure 7.5. Target: To develop tourism and its potential on the LAG territory

Investments for public use in recreation infrastructure, tourist infrastructure

Measure scope:1. Geographical scope: the whole territory of the LAG “Vazhod – Vetrino, Valchi Dol, Provadiya”;2. Scope of investments: the measure provides investment support for tourism infrastructure development and attractions for visitors in order to develop and market tourism products locally.

ELAGible activities: Only activities on the territory of the LAG are eLAGible for:1. Construction, reconstruction, repair, purchase of equipment and / or furnishing of tourist information centres;

2. Construction, reconstruction, repair, purchase of equipment and / or furnishing of the visitor centres for presentation and display of the local natural and cultural heritage;

3. Construction, reconstruction, repair, purchase of equipment and / or furnishing of tourist centres for arts and crafts;

4. Construction, reconstruction, repair and purchase of facilities for tourist attractions that are related to the local natural, cultural and / or historical heritage and providing services for educational or training purposes;

5. Construction, reconstruction, repair and purchase of tourist infrastructure facilities (information boards and signposts for tourist sites and routes, safety facilities, bicycle lanes and tourist trails);

ELAGible applicants:1. The municipalities on the MIG territory;2. Non – profit legal entities, domiciled on the LAG territory.

ELAGible costs1. Construction, including leasing or real estate improvements;2. Purchase or leasing of new machineries and equipment, furniture up to the market price of the asset;3. General costs related to the above, such as architects, engineers and consultants fees, environmental and economic sustainability consultancy fees;

The following intangible investments: the acquisition or development of computer software and the acquisition of patents, licenses, copyrights, trademarks.The expenses under item 3 shall not exceed 12% of the amount of expenses under items 1, 2 and 4.Costs, other than those referred to in item 2 related to the leasing contract, such as the lessor’s margin, interest refinancing costs, administrative expenses and insurance costs, are ineLAGible for aiding under the measure.

Operating costs associated with services provision are not eLAGible for this sub-measure aid. Advance payments of up to 50% of the public aid related to the eLAGible expenditure

approved are eLAGible. For projects for which the beneficiaries are contracting authorities under the Public Procurement Law, the advance payment is eLAGible as follows: up to 12% of the value of the approved public aid under the project for common costs and in the presence of documents from the procedure for selection of contractor (s), conducted in accordance with the Public Procurement Act; a difference of up to 50% of the value of the approved public aid under the project after carrying out all procedures and concluding a contract for the selection of contractor (s) under the Public Procurement Act.

VAT costs are eLAGible where they are not refundable in accordance with national VAT legislation.

Financial parametersMinimum eLAGible project cost – 9 779 BGNMaximum eLAGible project costs – 391 160 BGN

Intensity of the financial aidThe financial aid amounts to 100 percent of the total funded eLAGible costs for projects than do not generate net income after the investment has been made. The financial aid is 100 percent of the total amount of eLAGible expenses for projects financial aid, which after the investment will generate net income, but the amount of the expenses, eLAGible for funding does not exceed the BGN equivalent of EUR 50.000. The amount of financial assistance for projects that will generate net income after the investment has been made is based on a cost-benefit analysis. When implementing a project involving only non-profit activities and executed by a person registered under the Law on Non-Profit Legal Entities, Articles 107 and 108 of the Treaty of Functioning of the European Union shall not apply.The amount of financial assistance / budget of the measure/ - 450 000 BGN.

Criteria for projects selection: Points

1. Project focus- The project is aimed at creating public recreation areas in settlements – 10 points;- The project envisages activities for socialization, adaptation or construction of infrastructure for access to tourist sites or recreation areas for people with disability – 10 points.

25

2. The project activities are carried out in settlements outside the municipal centres.

10

3. Projects that meet the priorities of the Municipal Development Plans, adopted by the Municipal Councils.

10

4. The applicant is- Municipality – 5 points- Non-profit legal entity or community centre -10 points

10

5. The project is aimed at meeting the needs of large groups of people- Up to 1000 people – 5 points- More than 1000 people – 10 points

10

6. The project proposes new initiatives / incorporates innovative elements to improve the quality of life in the area.

10

7. Project evaluation / feasibility, quality and compatibility with the objectives and priorities of the LAG Strategy.- The project is realistic, well – grounded and feasible – 5 points;- The project contributes to the achievement of the objectives and priorities of the LAG Strategy – 10 points.- The project envisages and clearly states the actions of the beneficiary for sustainability within a minimum of 5 years – 5 points.

20

8. Applicant’s experience – the applicant has completed at least 1 project. 5

TOTAL 100Measure 22Preserving, developing and valorising specific local identities and local culture

Target: To create a local tourist product by preserving and developing local identity and local cultural heritage.

The measure, chosen in the Community – led Local Development Strategy is in line with the needs, identified in the studies and analyses on the territory, namely the financing of traditional community centres and the search for new modern forms for the protection of typical local products, products and food and their development and transmission to the next generations; the need to carry out conservation and restoration activities, exposure, socialization (ensuring normal access) and valorisation of the sites of cultural and historical heritage and natural heritage; continuation of activities to enrich the cultural calendar on the territory.

The purpose of the Measure is in line with Purpose 3 of EU Regulation 1305 / 2013 – Achieving balanced territorial development of rural economies and communities, including the creation and maintenance of employment and directly contributes to the achievement of Priority Axis 6B for enhancing territorial competitiveness in the rural territories by improving the quality of life and business conditions of Purpose 3 of the Rural Development Program 2014 – 2020 – Social – economic development of rural areas providing jobs, reducing poverty, social inclusion and a better quality of life.

Scope of the measure:1. Geographical scope: the whole territory of the LAG “Vazhod – Vetrino, Valchi Dol, Provadiya”;2. Scope of investments: the measure supports tangible and intangible investments aimed at protecting and / or developing the rural natural and cultural heritage by creating a new local tourism product.

ELAGible activities: financial aid for projects that strengthen relations and bring together locals of different generations and ethnicities to preserve and enhance local identities and culture will be provided. The measure will support projects, related to studies and investments to restore, preserve and revitalize the tangible (other than building stock and cultural monuments of national and world importance) and the intangible (traditions, customs, historical wealth and memory) of rural areas. Heritage will also provide care for

this side of life and development potential in the Provadiya, Vetrino and Valchi Dol municipalities.

Only activities, based on LAG territory are eLAGible for:1. Research, study and preservation of local identity – culture, lifestyle, typical local food, typical local products, music and fine arts, history, traditional crafts, customs and rituals, written and unwritten tradition;

2. Activities, related to certification of a local tourist product;

3. Conservation, restoration, cleaning and maintenance of significant sites of cultural and historical heritage of the area, related to the local tourist product (including archaeological), as well as the sites around them;

4. Investments in movable tangible cultural heritage:

- creation, storage or enrichment of collections – historical, ethnographic, etc.;- information activities, related to the promotion of tangible cultural heritage;- investments in equipment and / or furnishing of buildings / objects of cultural

heritage of the area / territory (local cultural infrastructure);- other, with the exception of measure 7.2.

5. Investments in intangible cultural heritage:- Research and development of materials in connection with the documentation and / or research and / or preservation of elements of the intangible cultural heritage;- Activities related to preservation and promotion of local folklore;- Preparation, organization and holding of local celebrations and various events in connection with local cultural customs and traditions – festivals, fairs, reunions and other events related to the local cultural heritage;

ELAGible applicants• The municipalities on the territory of the LAG;• Non – profit legal entities domiciled on the territory of the LAG;• Museums, community centres and other legal entities in the territory of the LAG, with activity in the field of culture.

ELAGible costs1. Expenses for the organization of trips on the territory of the LAG – expenses for business trips: travel, daily expenses and nights, according to the current Ordinance on business trips in the country;2. Costs, associated with the creation and certification of a local tourism product;3. Purchase and restoration of exhibits and equipment for ethnographic, historical and other exhibitions;

4. Costs for the purchase of materials, supplies, equipment, furnishings, equipment and

clothing for local folk groups;5. Costs, related to researches, archaeological excavation, conservation and / or restoration of local cultural monuments.6. Costs for organization and conducting various events related to local customs and traditions - / conducting festivals, fairs, holidays, customs, reunions/ and other events related to local heritage.7. Expenses for marketing and information activities, related to the promotion of local heritage, folklore, articles and food /brochures publication, leaflets, publications, films, seminars, etc./

8. Costs of organizing seminars, meetings and the like;9. External services costs- Rent of premises and equipment- Other external service costs necessary for the implementation of the project activities (postage, insurance, etc.)

Financial parametersMinimum eLAGible project cost – 4 889 BGNMaximum eLAGible project costs – 58 674 BGN

Intensity of the financial aid:1. 100 % when the recipient is a public entity, a community centre or a non-profit entity and the project does not generate revenue in accordance with the Cost Benefit Analysis (financial analysis), prepared in accordance with a model, approved by the Executive Director of the State Fund of Agriculture in accordance with the rules laid down in Commission Delegated Regulation (EU) No. 480 / 2014 of 3rd March 2014; and the European Commission Guidelines of December 2014 for preparation of Cost – Benefit Analysis of investment projects;2. 70 % when the recipient is a public entity and the project generates revenue in accordance with the presented Cost – Benefit Analysis (financial analysis), prepared in accordance with the model approved by the Executive Director of the State Fund of Agriculture in accordance with the rules laid down in Commission Delegated Regulation (EU) No. 480 / 2014 of 3rd March 2014; and the European Commission Guidelines of December 2014 for preparation of Cost – Benefit Analysis of investment projects;3. 60 % when the recipient is a private person;4. 70 % when the recipient is a private individual and the project is of public benefit;

Subject to the conditions of Commission Regulation (EU) No 1407/2013 of 18 December 2013 regarding the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to “de Minimis” aid. When implementing a project involving only non-profit activities and executed by a person registered under the Law on Non-Profit Legal Persons or under the Community Centres Act, Art. 107 and 108 of the Treaty on the Functioning of the European Union.

The amount of the financial assistance /budget of the measure/ - 183 700 BGN.

Criteria for selection of projects Points

1. The applicant is:- Municipality – 5 points- non-profit legal entity or community centre – 10 points

10

2. The project includes combined activities to promote local products, products and cultural heritage;

10

3. The project activities are carried out in settlements outside the municipal centres.

10

4. The project envisages the transfer of cultural experience, knowledge, skills and traditions between different generations.

10

5.The project activities preserve and promote the unique tangible cultural and historical heritage of the territory

10

6. The project activities motivate the local community to participate and initiate joint activities related to the recognition, revival and promotion of authentic local traditions, folklore and crafts.

10

7. The project activities encourage the joint participation of different social and civic groups and cultural institutions and ensure continuity between the generations with the active participation of young people.

10

8. The project activities recreate the unique local products and cultural heritage in an innovative and non-traditional way, reflecting contemporary animation methods.

10

9. Project activities include the participation of people with disabilities and / or minority groups.

5

10. Project evaluation / feasibility, quality and compatibility with the objectives and priorities of the LAG Strategy:- The project is realistic, well-grounded and feasible – 5 points- The project contributes to the achievement of the objectives and priorities of the LAG Strategy - 5 points.- The project envisages and clearly states the actions of the beneficiary for sustainability within a minimum of 5 years - 5 points.

15

TOTAL 100

Operational Program “Environment” (European Regional Development Fund) 2014 – 2020

LAG DOES NOT PROVIDE ANY MEASURES

Operative LAG DOES NOT PROVIDE ANY MEASURES

Program “Science and education for smart growth” 2014 – 2020 (European Social Fund)Operative Program “Human Resources Development” (European Social Fund)

LAG DOES NOT PROVIDE ANY MEASURES

Operative Program “Innovation and competitiveness” (European Regional Development Fund)

LAG DOES NOT PROVIDE ANY MEASURES

Maritime affairs and fisheries program (European Maritime and Fisheries Fund)

LAG DOES NOT PROVIDE ANY MEASURES

5. Financial plan:6.1. Indicative allocation of funds by program / funds and measures:(not more than 2 pages)

Measurecode

Measure’s nameTotal for the period of

the strategyBGN %

MEASURES, FINANCED BY THE RURAL DEVELOPMENT PROGRAM 2014-2020 (European Agricultural Fund for Rural Development)

2 933 700 100

4 INVESTMENTS IN MATERIAL ASSETS 900 000 30.68

4.1.1 Investments in agricultural farms 600 000 20.454.2.1 Investment in processing / marketing of agricultural products 300 000 10.23

6 FARMS AND ENTERPRISE DEVELOPMENT 500 000 17.046.4.1. Investment in support of non – agricultural activities 500 000 17.04

7 MAIN SERVICES AND RURAL RENEWAL IN RURAL AREAS 1 350 000 46.02

7.2.Investment in the creation, improvement or expansion of all types of small – scale infrastructure

900 000 30.68

7.5.Investment for public use in recreation infrastructure, tourist infrastructure

450 000 15.34

Measures, not part of Rural Development Program 2014 – 2020, but included in Regulation (EU) No. 1305/2013 (financed by European Agricultural Fund for Rural Development)

Not applicableMeasures outside the scope of measures of Regulation (EU) No 1305/2013 but in line with the objectives of the Regulation (financed by European Agricultural Fund for Rural Development)

183 700 6.26

22Preserving, developing and valorising specific local identities and local culture

183 700 6.26

Measures, funded by Operative Program “Environment” 2014-2020 (European Regional Development Fund)Not applicableMeasures, financed by Operative Program “Science and education for smart growth” 2014-2020 (European Social Fund)Not applicableMeasures, financed by Operative Program “Human Resources Development” (European Social Fund)Not applicableMeasures, financed by Operative Program “Innovation and competitiveness” (European Regional Development Fund)Not applicableMeasures, financed by Maritime affairs and fisheries program (European Maritime and Fisheries Fund)Not applicableTOTAL FOR PROJECTS IN LINE WITH THE STRATEGY OF COMMUNITY-LED-LOCAL DEVELOPMENT:

2 933 700 100%

6.2. Financial statement of budget and allocation of funds by programs and by measures:(not more than 2 pages)

LAG “Vazhod – Vetrino, Valchi Dol, Provadiya” shall implement a single – fund local development strategy in its territory, involving only measures from the Rural Development Program 2014-2020 (European

Agricultural Fund for rural development) amounting to 2 933 700 BGN, subject to the condition of the Community – led Local Development approach for maximum eLAGible project cost up to EUR 200 00. The budget allocations took into account the needs of the LAG, which should be met, as well as the necessary support for the strengths that will subsequently generate growth and further development. This financial resource is allocated with balance and in accordance with the identified needs for investment and financing of projects in the various spheres of socio-economic life in the territory between 6 measures, 5 of which were selected among the eLAGible for RDP 2014-2020, and one is outside the scope of the measures of Regulation (EC) No 1305/2013 but corresponding to the objectives of the Regulation:

Measures targeting the private sector – agriculture and local business:- Sub – measure 4.1 “Investments in agricultural farms”- Sub – measure 4.2 “Investment in processing / marketing of agricultural products”- Sub – measure 6.4.1. “Investments in support of non – agricultural activities.”

Measures targeted at the public and non-profit sector – the Provadiya, Vetrino and Valchi dol municipalities, non-governmental organizations and community centres, etc.

- Sub – measure 7.2. Investment in creation, improvement or expansion of all types of small – scale infrastructure.- Sub – measure 7.5. “Investments for public use in recreation infrastructure, tourist infrastructure.- Sub-measure 22 Preservation, development and valorisation of specific local identities and local culture.

For the agricultural and local business sector, funds are allocated from the general budget of the Community – led-local development from the Rural Development Program amounting to 1 400 000 BGN, which is 47.7% of the total budget of the funds. The private sector budget in the LAG territory is justified by the increased interest of business and farmers to apply for a project in the LAG, the high project readiness of both sectors – agriculture and micro – enterprises, and the fact that during the study of it is generally agreed that small farmers and micro – enterprises are extremely uncompetitive in applying for national programs. They are ready to use future LAG receptions for the implementation of small projects, and their identified needs are covered by the activities that are planned to be funded.

The envisaged budget will allow the realization of a minimum of 18 projects, with measures 4.1 and 6.4 providing for a maximum eLAGible amount of a subsidy for one project of BGN 100,000.

The funds under the three private measures are allocated as follows:Sub-measure 4.1 “Investments in agricultural holdings” with estimated funds of BGN 600,000.Sub-measure 4.2 “Investments in processing / marketing of agricultural products” with a budget of BGN 300,000.Sub-measure 6.4.1 “Investments in support of non-agricultural activities” with an estimated amount of BGN 500,000.The funds in the Strategy intended for the public / non-profit sector amount to BGN 1 533 700, which is 52.3% of the estimated budget of the Rural Development Program. This distribution is conditioned by the fact that the LAG “Vazhod - Vetrino, Vulchi Dol, Provadiya is structured by three municipalities, on the territory of which, in addition to the Provadiya, Vetrino and Valchi Dol municipalities, potential beneficiaries

are a well-developed and functioning non-government organizations sector and community centres.The funds under the three public measures are allocated as follows:

Sub-measure 7.2. Investments in the creation, improvement or expansion of all types of small-scale infrastructure with an estimated amount of BGN 900,000.

Sub-measure 7.5. Investments for public use in recreation infrastructure, tourist infrastructure with estimated resources of BGN 450,000

Sub-measure 22 Preservation, development and valorisation of specific local identities and local culture with the envisaged amount of BGN 183 700.

A balanced number of projects is expected between the public sector and the non-profit sector, providing opportunities for projects by local non-governmental organizations, community centres, socially oriented organizations and ethnic minority organizations.

The funds in the Strategy for Public / Non-profit Projects will accentuate in small investments for more settlements, which will also ensure public involvement and contribution to the implementation of the Strategy through a minimum of 19 projects. The secured public sector funding will ensure the local capacity to implement local policies is enhanced, with community-wide results.Because of numerous meetings and public hearings involving a large number of representatives of the local community, it was decided to allocate the funds in the budget of the Community-led Strategy locally in a balanced way between the individual main priorities and according to the identified needs. This embodies the LAG's ambition to support the main identified areas for development of the territory without overwhelming support for any of them, since the Community-led Local Development Strategy is based on complementarity and synergies between different priorities, objectives, activities and results and aims at maximizing positive impact throughout the area of application.The active involvement of stakeholders in discussing the financial plan of the strategy guarantees its comparative accuracy. Adequate financial planning is a prerequisite for the successful and efficient implementation of the strategy, the achievement of the objectives and the implementation of indicators at the measure and strategy levels.

6. An action plan showing how goals are translated into actions:(not more than 4 pages)

The Action Plan for the implementation of the present Community-led Local Development Strategy of the Vazhod-Vetrino, Vulchi Dol, Provadiya LAG is guided by the basic principles of the Association's work as defined in the Statute. It will be implemented in full compliance with the requirements of the regulatory framework for the implementation of the Community-led Local Development approach of the Rural Development Program 2014-2020.The Action Plan is an organized list of activities for the implementation of the Community-led Local Development Strategy in the following main areas:1. Preparatory activities for the implementation of the Measures as per the Strategy of Community – led Local DevelopmentIn the implementation of the Community – led Local Development measures, the “Vazhod – Vetrino, Valchi dol, Provadiya” LAG will follow the project selection procedures for a Community – led Local Development

strategy set out in the regulatory framework for the implantation of the Community – led Local Development approach. Immediately after signing the agreement for the implementation of the Strategy, the LAG will announce an indicative application deadline, which will stipulate that the first call for proposals will be published within the regulatory deadlines.As a preparatory stage, in the first months after signing of the Financing Contract of the Strategy, the LAG will develop guidelines and sample application documents for each measure, which will be approved by the Board of Directors. The guidelines and sample documents for every given measure will be published on the LAG's website before the call for proposals for the relevant sub-measure is announced. In parallel, a records system and archive will be developed and maintained in which the acts of the LAG bodies will be recorded and traced.For each next year, the LAG’s Board of Directors, within the relevant regulatory deadlines, approves and publishes, on the LAG website, an indicative timetable for the all budget-approved measures of all Community – led Local Development Strategy. The LAG's Board of Directors decides to announce the acceptance of applications in accordance with the indicative timetable and approves an invitation to select projects from potential beneficiaries of financial assistance under certain measures.This annual call for proposals and project proposals cycle enables the LAG team to plan activities and tasks evenly throughout the Strategy's implementation period and allows potential beneficiaries to evaluate the project preparation and implementation time themselves about their endeavours. This will create conditions for facilitating access of potential applicants to the funding for the projects under the Strategy throughout the implementation period. This logic will ensure:

regular monitoring and balanced utilization of the financial resources of the Strategy according to the annual estimates and budgets of each measure;

implementation of corrective actions in case of insufficient number or substandard projects of a specific measure

Generation and announcement of good practices and lessons learned to stimulate better project quality over the coming years

effective operation of a system for monitoring the implementation of the StrategyAn additional effect of applying this approach is the ability to find integrated and innovative solutions and ideas for the development of the territory through synergies between projects in the different priority areas and measures.2. Activities and procedures for the selection of projects under measuresThe Vazhod-Vetrino, Valchi Dol, Provadiya LAG applies a non-discriminatory and transparent procedure and objective criteria for project selection of measures under the Community-led Local Development strategy, in accordance with the conditions and requirements the regulatory framework for the Community-led Local Development approach. The procedure will be published on the website of the LAG "Vazhod - Vetrino, Vulchi Dol, Provadiya" at the first announcement of the call for applications under the measures. Clarification of the procedure to potential beneficiaries will be undertaken when each call for proposals is announced. The LAG will organize and conduct information meetings with potential applicants on measures and invitations to explain the application procedures, requirements and documents, as well as support the project preparation process for potential applicants. The LAG will develop rules and model documents for the receipt of applications for financial assistance, for the establishment and maintenance of an electronic register of submitted projects under the Community-led Local Development strategy, which reflects the status and progress of each project. Information on each of the approved project proposals will be entered in

the register, which will be published on the LAG's website. The LAG team will organize and carry out project selection in accordance with the requirements of the regulatory framework of the Community-led Local Development approach.3. Monitor activities for the implementation of projects by the beneficiariesLAG shall monitor the implementation of the projects, methodically assist the recipients of financial aid and make on-site visits to applicants and recipients, when foreseen in the procedure. The LAG team will provide technical assistance and help to the approved applicants in the preparation of applications for payment to the State Fund for Agriculture - Paying Agency, as well as in the preparation of reports and documents for reporting on the implementation of projects.

4. Monitoring and evaluation activities of the StrategyThe LAG will produce reports, analysis, reports, reports, and more on the implementation of the Community-led Local Development strategy required by the Managing Authority of the Rural Development Program 2014-2020. Details of the process of monitoring and evaluation of the LAG Strategy are set out in section 8.4. Description of the monitoring and evaluation system.

5. Activities to promote the Community –led Local Development, the results of its implementation, including sharing of experience and good practicesCommunity-led Local Development promotion activities are subject to funding under sub-measure 19.4 “Ongoing Expenditure and Promotion of a Community – led Local Development Strategy” and are regulated in Regulation No. 1 from 22nd January 2016 of the implementation of sub-measure 19.4 “Ongoing Expenditure and Promotion of a Community – led Local Development Strategy” of measure 19 “Communities-led Local Development” of the 2014- 2020 Rural Development Program.In general, they will cover the following components: (1) Presentation and clarification of the objectives, priorities and expected results of the Communities-led Local Development Strategy. Despite the broad support received by the current Strategy of Community-led Local Development in its development and endorsement by the local community, efforts are still needed to promote it, especially among representatives of vulnerable groups and in more remote communities. (2) Presentation and clarification of the goals, target groups and requirements of each SWMP to the potential beneficiaries. (3) Sharing of project implementation experience by the beneficiaries - good experience or not so good experience, its sharing is always beneficial and instructive to other potential beneficiaries from the territory as well as to the LAG team and the Association as a whole. (4) Synthesis and presentation of the results of the Strategy of Communities –led Local Development implementation, site effects and impacts on improving quality of life need to be continued.6. Activities to build and upgrade the capacity, knowledge and capabilities of the team, local stakeholders and local leadersTerritorial and community revitalization, capacity building and team building activities, local stakeholders and local leaders capacity promoting are at the heart of the Leader approach and play a key role in the effective and efficient implementation of the Community-led Local Development Strategy. A non-exhaustive list of activities includes: holding stakeholder meetings; networking - with other LAGs from the country and abroad, national rural network, European rural network, with other organizations and institutions relevant to the development of the territory of the Vazhod-Vetrino, Valchi Dol, Provadiya LAG; organizing trainings, seminars and information meetings for local leaders, etc., as required by Sub-measure 19.4.

Specific target 1. Increasing of the competitiveness of local agriculture and adding value to local agricultural productsActions to achieve the goal Investments in agricultural holdings (Measure 4.1 of the Communities-led

Local Development Strategy)Financial resource 600 000 BGNTimeframe for implementation

Acceptance of the project: periodically from 2018 to 2020, includingExecution of contracts: no later than 30th June 2023

LAG responsible body Employees, Board of Directors and +General meeting

Specific target 1.2. Supporting the production and processing of area-specific agricultural value-added productsActions to achieve the goal Investments in processing / marketing of agricultural products

(Measure 4.2 from the Communities-led Local Development Strategy)Financial resource 300 000 BGNTimeframe for implementation

Acceptance of the project: periodically from 2018 to 2020, includingImplementation of contracts: no later than 30th June 2023

LAG responsible body Employees, Board of Directors and General meetingSpecific Target 1.3 : Creating new jobs and reducing poverty through investment in non-agricultural businessesActions to achieve the goal Investments in non-agricultural activities (Measure 6.4 from the Strategy of

Community-led Local DevelopmentFinancial resource 500 000 BGNTimeframe for implementation

Acceptance of the project: periodically from 2018 to 2020, includingExecution of contracts: no later than 30th June 2023

LAG responsible body Employees, Board of Directors and General meetingSpecific target 2.1: Improving public infrastructure and access to public servicesActions to achieve the goal Investments in the creation, improvement or expansion of all types of small-

scale infrastructure (Measure 7.2. of the Communities-led Local Development Strategy)

Financial resource 900 000 BGNTimeframe for implementation

Acceptance of the project: periodically from 2018 to 2020, includingExecution of contracts: no later than 30th June 2023

LAG responsible body Employees, Board of Directors and General meetingSpecific target 2.2. Creation of new attractions and adherent tourist infrastructureActions to achieve the goal Investments for public use in recreational infrastructure, tourism

infrastructure (Measure 7.5. of Communities-led Local Development Strategy)

Financial resource 450 000 BGNTimeframe for implementation

Acceptance of the project: periodically from 2018 to 2020, includingExecution of contracts: no later than 30th June 2023

LAG responsible body Employees, Board of Directors and General meeting

Specific Target 2.3. Utilizing local traditions and heritage to reach sustainable communitiesActions to achieve the goal Conservation, development and valorisation of specific local identities and

local culture (Measure 22 of the Communities-led Local Development Strategy)

Financial resource 183 700 BGNTimeframe for implementation

Acceptance of the project: periodically from 2018 to 2020, includingExecution of contracts: no later than 30th June 2023

LAG responsible body Employees, Board of Directors and General meeting

ActivitiesYears

2018 2019 2020 2021 2022 2023Annual periodic admission and contracting of Communities-led- Local Development Strategy projects

31.12.

Implementation of Communities-led- Local Development Strategy projects

30.06.

Monitoring and evaluation of the Strategy for Communities-led Local Development

М.О. Until 30.09. П.О.

Promotion activities of Communities-led- Local Development Strategy

Until 30.09.

Communities-led- Local Development Strategy managing activities – running costs

Until 30.09.

М.О. –interim evaluation; П.О. –next evaluation4. A description of the strategy management and monitoring framework showing the capacity of the

LAG to implement the strategy and a description of the specific evaluation framework:(not more than 12 pages)

8.1. Organization structure of LAG

GENERAL MEETING

Chairman of the Board of Directors

Management Board

Commission for assessment and project selection, incl. external expertsExecutive Director

Administrative unit: Expert in application of the Strategy for Community-led Local Development Measure Additional personnel

Ministry of Agriculture, Foods and Forestry Management body of the Program for Rural Regions Development, Agriculture State Fund-Organization

structure / scheme

8.2. LAG Management:- Management and control bodies;

Association “Local Action Group – Vazhod - Vetrino, Valchi Dol, Provadiya” is an association with socially useful activity for implementation of local development approaches and it meets the requirements of the Law on Non-Profit Legal Entities and the Guidelines for Determining Application Conditions and Conditions for Implementing Approved Communities for Community-led Local Development Strategies.In this sense, funding from the European Agricultural Fund is managed bottom-up in line with the local needs and local people's initiatives and promotes 'learning by doing' in local communities, enhancing their planning capacity and following the principles of the EU Common Agricultural Policy.The Local Action Group “Vazhod-Vetrino, Valchi Dol, Provadiya” was established in 2010 and registered with a decision of the Varna District Court. The General Assembly (GA) is the supreme collective body of the Association in line with the Statue. The members of the General Assembly are representatives of the public, business and non-profit sectors of the territory as part of the public-private partnership on which the LAG is based. At the time of application with this Community-led Local Development Strategy, it consists of 65 members of the Association and includes representatives of over 50% of the settlements on the LAG territory:

- Public sector –Vetrino, Valchi dol and Provadiya municipalities (4,6 %)- Industrial sector – 31 representatives (47,7 %)- Non-profit sector – 31 representatives (47,7 %),The members are eLAGible to the requirement to have a permanent address or to work on the territories of the municipalities of Vetrino, Valchi dol and Provadiya,

and for the legal entities to have a seat and address of management within the LAG territory, which coincides with the administrative-territorial borders of the municipalities of Vetrino, Valchi dol and Provadiya district of Varna. None of the sectors represented at the General Meeting exceeds 49 percent of the eLAGible voters according to Art. 28, para. 1 of the Non-Profit Legal Entities Act.Representatives of 30 settlements are members of the General meeting, which represents 52.63% of the total 57 settlements on the LAG territory - included in the administrative-territorial borders of the three municipalities.The LAG's collective supreme body is represented by one or more representatives of 10 out of 12 stakeholders, identified in the studies (83.33%), including:1 stakeholder group - public sector representatives:- Municipal administrations and Municipal councils - municipalities of Vetrino, Valchi dol and Provadiya - 3;4 stakeholder groups - representatives of the business sector:- farmers and cooperatives - 14;- micro-enterprises in the trade, services and tourism sectors - 11;- micro-enterprises in the manufacturing sector - 5;- small and medium-sized enterprises - 1;4 stakeholder groups - non-profit sector representatives:- Community Centres and Cultural Institutions - 22;- Associations in the field of youth activities and sports - 1;- Associations in the field of development of the territory, ecology and tourism - 2;- Representatives of minority communities and vulnerable groups - 2;- Citizens and local leaders - 4In addition to its core powers under the Non-Profit Legal Entities Act, the General meeting elects and dismisses members of the Board of Directors (MB) by open vote, excludes members and accepts members in cases of rejection by the Board of Directors. With respect to the Communities-led Local Development Strategy, the General meeting adopts and approves both the strategy itself and its budget and annual reports on its reporting.The supreme governing body of the Non-Profit Association "LAG Vazhod - Vetrino, Vulchi Dol, Provadiya" is the Board of Directors. The Board consists of 7 persons, members of the Association. The Board includes three members that are representatives of the municipal authorities of Vetrino, Valchi Dol, Provadiya (42.86%), two - representatives of the business sector (28.57%) and two, who are representatives of the non-profit sector (28.57%). The Board elects and dismisses the Executive Director and determines his representative powers.With regard to the Communities-led Local Development Strategy, the Board of Directors proposes a budget and an implementation plan to the General Meeting; selects and dismisses Project Evaluation and Selection Committees; make final decisions on financing projects under the Communities-led Local Development approach and others.The Chairman of the Board, elected by the General Meeting from among its

members, represents the Association by virtue of the Statute and the court decision and directs its activity. The Chairman of the Board is the representative of the Municipality of Vetrino in the General Assembly and in the Managing Board of the Association.The basic requirement for all the bodies / the General meeting and the Board of Directors / of the LAG "Vazhod-Vetrino, Vulchi Dol, Provadiya" is to have a share of the representatives of the public sector, representatives of the economic sector and representatives of the non-profit sector, not exceeding 49% of those entitled to vote according to Art. 28, para. 1 of the Non-Profit Legal Entities Act.

Annexes: LAG Statutes, List of members of the collective supreme body and the collective governing body of the LAG; documents proving the membership of the members to the sector and the interested party - protocols with decisions of the legal entity, excerpt from the relevant register, self-identification declarations, certificates of permanent address of the individuals, etc. /

- description of the positions and requirements for the Executive Director and the personnel.

LAG personnel must have the appropriate competencies, skills and resources to generate and manage local development processes. Staff should be qualified and experienced in project management, and where LAGs are entrusted with financial management tasks, staff should also have experience in finance.The LAG Employees shall not be members of the LAG's collective governing body, nor related Parties to members of the LAG's collective governing body within the meaning of § 1 of the additional provisions of the Commerce Act, nor any municipal councillors, mayors, deputy mayors, or employees of the central or territorial administration of the executive, of the local authority or of a public person.The implementation of the Communities-led Local Development Strategy requires personnel with specific communication and organizational skills. Their task is to encourage the weaker members and regions of the Community to participate in the local development process by analysing the local situation, identifying and developing potential projects, stimulating potential beneficiaries and assisting local project owners with ideas for the development of ideas for projects, eLAGible for financial support. This type of work should be seen as an investment in human and social capacity, not as an operating expense for the program.The Executive Director of the LAG "Vazhod - Vetrino, Valchi Dol, Provadiya" is elected by the Board of Directors. The powers of the Executive Director shall be laid down in the LAG's statutes and in the employment contract. The Executive Director, with the authorization of the Chairman of the Board, represents the Association in the country and abroad, including before state bodies, institutions and institutions, etc. He manages the program and financial activities of the Association, concludes contracts, makes propositions to the Board of Directors for selection of personnel, budget and program of the Association, including the Communities-led Local Development Strategy, as well as the reports, reports and payment applications related to its implementation.The following requirements shall be fulfilled when choosing an Executive Director

in line with the Guidelines for determining the conditions of application and the conditions for the implementation of approved strategies for Community-led local development,: higher education, at least a bachelor's degree; professional experience of at least 5 years; management experience of at least two years; experience in the implementation of a project, program or strategy worth over BGN 100,000, funded by the EU or other international donors. The Executive Director reports to the Board of Directors and the General meeting.According to the approved and signed job descriptions / Attachment: job description of the Executive Director/, the Executive Director will have coordinating and leadership functions throughout the implementation of the Communities – led Local Development Strategy.The person proposed to become Executive Director of the LAG shall meet all requirements, management experience of more than 5 years, experience in the implementation of projects / contracts, funded by the EU or other international donors and over 1 year experience in implementing the Leader approach. “Implementation of the Communities-led Local Development Strategy” Expert shall play a key role and participation in the implementation of the Project Selection Procedure of the LAG Community-led Local Development Strategy and in particular participation in the processes of: informing the local community; assisting participants in the process of applying for support, executing projects, submitting payment applications; monitoring, evaluating and monitoring the projects and the Community-led Local Development Strategy itself; conducting trainings for local leaders and others.This person will undertake the administrative work of coordinating and publishing the calls for tenders, registering applications for support in the LAG database system. This person will have supporting and coordinating functions for the administrative activities of the organization and will be responsible for organizing the implementation and reporting of all LAG activities under sub-measure 19.4 "Ongoing Expenditure and Promotion of the Communities-led Local Development Strategy" of measure 19 "Community-led Local Development", including on the announcement and conduct of the public procurement of LAG "Vazhod-Vetrino, Vulchi Dol, Provadiya", in accordance with the Public Procurement Law, in connection with the management of LAG funds.The selection procedure shall make sure that the Expert comply with the following requirements: completed higher education, at least a bachelor's degree; professional experience of at least two years and experience in the implementation of projects funded by the EU or other international donors. / Attachment: Job Description of Expert Implementation of Communities-led Local Development Strategy /The proposed LAG Expert meets all requirements and has a great deal of experience in the implementation of projects / contracts funded by the EU or other international donors.Preliminary agreements for subsequent employment under employment contracts have been concluded with the employees selected by the MB. / Annex: Preliminary

agreements for subsequent employment under contract.The selected personnel is appropriate, with the necessary experience in the implementation of a Community-led Local Development Strategy, and fully cover the requirements for these positions under the Guidelines on the conditions for applying and the conditions for the implementation of the approved Community-led Local Development strategies. / Annex: documents proving the fulfilment of the requirements of Article 13, paragraph 3 for the Executive Director of the LAG and for the expert on the implementation of the Community-led Local Development strategy, as well as documents for their additional experience /The detailed description of the organizational structure and responsibilities for management and control of the activity of the Vazhod-Vetrino, Valchi Dol, Provadiya LAG is set out in the Statute of the organization / Annex: Statute of LAG Vazhod-Vetrino, Valchi Dol, Provadiya/

8.3. Capacity of the Local Action Group to fulfil the Strategy for Community-led Local development:“LAG Vazhod-Vetrino, Vulchi Dol, Provadiya” Non-Profit Association was established and registered to prepare local communities for sustainable development on the territory of Vetrino, Provadiya, Valchi Dol municipalities with the aid of funds from the European Agricultural Fund for Rural Development in implementation of the Project “Acquisition of Skills and Achievement of Public Activity for a Potential Local Action Group on the Territories of the Municipalities of Vetrino, Provadiya and Valchi Dol” under Sub-measure 431-2 of the Rural Development Program 2007-2013 and implemented Contract № RD50-172 / 03.06.2009 valued to the amount of BGN 168 209, excluding VAT.

As a result, the LAG Vazhod-Vetrino Valchi Dol, Provadiya Non-profit Association, has developed and submitted a strategy for local development for approval by the Ministry of Agriculture, Food and Forests. However it was not approved. The Association discontinued its work on the Leader approach, but continued to work with its partners and LAG members by holding meetings, general meetings, publishing reports, plans and reports on its activities. Although not used temporarily, the administrative capacity created to develop and implement the Strategy has been retained and will be used to implement this Community-led Local Development Strategy.LAG Vazhod-Vetrino, Valchi Dol, Provadiya updated its activity by launching call procedure for applications for financial assistance under sub-measure 19.1 "Aid for preparatory activities" from the Rural Development Program 2014-2020.The project, implemented by the LAG under measure “Aid for preparatory activities" under Contract No РД50-200 / 07.12.2015 to the value of BGN 48 305,75 is a major step for the further development of the administrative capacity, training and strengthening of the established partnership in order to prepare and implement a Community-led Local Development Strategy.The Community-led Local Development and the Community-led Local Development Strategy of the LAG provide leader role for the people facing a particular need or challenge.The strategy has been developed and projects will be selected by local entities. This is the most distinguishing characteristic of community-led local development and its greatest advantage.The LAG will create capacity by turning passive "beneficiaries" of the territory into active partners and "engines" of its development. Involving people in 'co-production' of development policy has many important

benefits.The area's civil potential has been maintained over the last few years with the efforts of the Managing Boards, the assistance of the municipalities and key local leaders, interested in the sustainable development of the rural area. It should be noted that the local authorities of all three municipalities have implemented a series of projects under the Rural Development Program 2007-2013 in the past programming period as well as other community projects. There are also projects, implemented by organizations and companies that are members of the Local Action Group.This is a good prerequisite for the successful implementation of the Strategy with the involvement not only of the Appointed Team and the Board of Directors, but also by incorporating the capacity, already held by some members of the General Meeting. For its capacity to implement the Community-led Local Development Strategy, the LAG relies on identified participants / stakeholders in Provadiya, Vetrino and Valchi Dol municipalities, who will participate in the implementation of the Strategy as partners, representatives, beneficiaries and community. / Annex Sub-contract 431-2 of the RDP 2007-2013 and Contract under sub-measure 19.1 of the RDP 2014-2020 /Organization Capacity: LAG is comprised of local individuals and entities with very good capacity and considerable experience in completed projects. The General Meeting individuals are key representatives of the local community in the area of education, with expertise and experience in various fields - ecology, agriculture, law, finance, accounting, business management, history, construction and more.Team Capacity: The board members have excellent administrative and management capacity, with over 50% of them having previous project experience. The personnel, who will be involved in the implementation of the Communities-led Local Development Strategy have extensive experience in working with EU funds as well as experience in implementing the Leader / Communities-led Local Development approach. The Executive Director has over 5 years of management experience in public, business and non-profit sectors, incl. as LAG Executive Director in the previous and current programming period. In addition to managing strategies, the latter had also participated in the management of a project, to the amount of BGN 177 0000 under Community program “Human Resources Development”. The Community-led Local Development Strategy implementation Expert has a great deal of experience in writing, implementation and evaluation of projects, funded by all EU funds. The involvement of an experienced LAG expert and management team, together with the hiring of proven external experts, ensures the successful implementation of the Local Development Strategy.Financial capacity: During the period of implementation of the Communities-led Local Development Strategy, it will rely on both its own and foreign temporary resources for financing the activities of the LAG under sub-measure 19.4 "Current Costs and Promotion of the Communities-led Local Development Strategy". The Municipal Councils of Vetrino and Valchi Dol have made decisions to finance the activities of the LAG, and a temporary grant contract has been concluded with one individual. The resources provided are to the amount of BGN 30,000.00, with which the LAG will be able to start working immediately after the eventual approval of the Community-led Local Development Strategy. If necessary for the implementation of sub-measure 19.2. and sub-measure 19.4., additional financing will be provided as interest-free loans.The provided local funding resources represent 3.07% of the funds for the management and promotion of the Communities-led Local Development Strategy, for which LAG will apply under sub-measure 19.4 - 977 900.00 BGN / BGN equivalent of 500 000 EUR. Annex: decisions of the Municipal Councils and contract for temporary provision of funds.Separate office and equipment: In order to comply with the requirements of the Guidelines for

determining the conditions for application and the conditions for fulfilling the approved strategies of the Community-led Local Development, a contract for free use of three premises with the Prosveta-1905 People’s Community Centre in Vetrino village is signed for a separate LAG office:" work space" to the area of 18.50 sq.m.," “meeting and conference room" to the area of 30.40 sq.m. and an archive of 5.61 sq.m., located on the second floor in the building of the Multifunctional Cultural and Information Centre in the village of Vetrino. The LAG office is accessible to disabled people as the building is provided with ramps and an elevator. / Annex: Contract for free usage, drawing of the premises, statement of the Chief Architect of Vetrino Municipality for accessible environment.Office equipment, furnishings and devices are provided for the Employees to fulfil their work in high quality. The office equipment for the intended two LAG Employees includes: desks - 4, office chairs - 3, meeting table - 1, visitor chairs - 9, air conditioner - 1, stationary computer with monitor - 2, portable computer / laptop / - 2 pieces, copy machine - 1 piece, laser printer - 1 piece and a camera - 1 piece. / Annex: documents certifying the availability of office equipment and equipment.

8.4. Description of the monitoring and evaluation system:The process of monitoring is defined as activity of systematic and continuous collection, analysis and use of information for the purpose of management control, identification and taking corrective actions in the implementation of the LAG Strategy for Community-led Local Development.The evaluation is defined as a periodic review of the compliance, effectiveness, efficiency, impact, economic and financial viability and sustainability of the LAG's Community-led Local Development Strategy in the context of the planned objectives.The objectives of monitoring and evaluation are: - To gather and systematize information in order to facilitate the subsequent management, development and prioritization of the activities of the Strategy.- Identify possible weaknesses or risks in the implementation of individual projects; - Support the introduction of corrective measures to address weaknesses in the implementation of individual projects and to prevent the risk of irregularities, in particular concerning financial management; - LAG to gain experience in the implementation of the strategy, to be informed about the adaptation of the approach to existing or future programs.

The main sources of information will be the 2020 Management and Monitoring Information System and the LAG project proposal registers, which will be complemented by any newly received information and data from document sources - minutes, reports, reports, letters, etc.

The following indicators will be monitored in the course of the Strategy of Community-led Local Development monitoring process:

the quantitative and financial indicators set, that take into account the results and impact of the implementation of the Strategy;

timing, organization and methods of implementation; measures for providing information and publicity for the implementation.

The implementation of the Strategy of Community-led Local Development will be monitored by the LAG team. Directly involved in updating the databases is the expert on the implementation of the Strategy of Community-led Local Development. The beneficiaries of the Strategy will provide monitoring data to the

applications for support. External evaluation will also be periodically assigned to experts.The Executive Director of the LAG will be responsible for collecting, processing and storing data, which who is also in charge for the organization and control over the process.The procedures for performing regular monitoring, related compliance checks and reporting on the implementation of the CLPM Strategy and all individual projects have been prepared in compliance with the regulations.The LAG will apply these requirements and procedures, depending on the monitoring method (internal and external):1. Internal monitoring / at the level of Community-led Local Development strategy and individual projects, implemented by the LAG management team /, aimed at:- Overall monitoring of the implementation of the local Community-led Local Development strategy and each individual project;- Development and implementation of procedures for detecting and reporting irregularities;- Taking into account all the monitoring indicators, required by the Managing Authority of the Rural Development Program, set out in the Strategy;- Provision of any requested information to the Managing Authority, related to the implementation of the Strategy and the individual projects;- Preparation of annual reports to the Managing Authority of the Rural Development Program, as well as one final report after the final completion of the Community-led Local Development Strategy, which is a summary of the individual projects completed.1. External monitoring / at the level of the Community-led Local Development strategy and individual projects implemented by the managing authority of the rural development program / aimed at:- The strategy promotion;- Financial and physical progress;- Efficiency of the LAG team and the processes, related to its functioning;- Effectiveness of the LAG partners.In order to improve the efficiency of the implementation of the Strategy, LAG will conduct overall monitoring of the implementation of the Strategy and the individual projects throughout the implementation period. Within the scope of monitoring the implementation of the group's activity and individual projects, the following will be emphasized:- The progress of the local CLLD strategy towards meeting its specific objectives;- The compliance with the general and specific objectives of the Rural Development Program;- The eLAGibility of costs incurred and their direct relation to the achievement of the objectives of the Strategy- The existence of a sufficiently detailed financial audit trail;- The existence and proper keeping as per the Accounting Act of separate analytical accounts for the activities for which a grant has been received from the European Funds for a period of 5 years from the date of official recognition of the LAG and the actual payment of the aid;- The proper use of fixed assets, acquired during the implementation of the local Community-led Local Development strategy and the individual projects;- The acquired tangible assets on the basis of the aid may not to be leased, nor provided for paid or unpaid use – through the means of lease contract, cooperation contract etc.- Storage of all original documents, related to the implementation of the Local Community-led Local

Development strategy and the individual projects;- Placing of informational signs on easily visible places – indicating the European Agricultural Fund for Rural Development co-financing.- LAG shall fully assist the Managing Authority of the Rural Development Program and the Monitoring Committee in carrying out evaluations of the implementation of the Community-led Local Development Strategy.The monitoring and evaluation will take into account the progress in the implementation of the Strategy, through the means of base indicators, financial indicators / number and value of applications submitted, number and value of applications approved, number and value of contracts concluded, number and value of payment requests submitted, number and the value of approved payment requests, the number and value of successfully completed projects / as well as the outcome indicators of the Strategy of Community-led Local Development. The team will maintain the information system in place that aims to provide reliable information on budgetary parameters and results from the implementation of the Strategy and the partners, involved in the management of the Community-led Local Development so that they can make the right management decisions. The rules for the management and monitoring of the Community-led Local Development Strategy implementation, the assessment of the progress of the Community-led Local Development Strategy implementation and the self-assessment will allow timely forecasting and finding of a solution in the event of future obstacles to ensure that the objectives of the Community-led Local Development Strategy can be achieved without impediments. The team work of the LAG staff and the interaction with the rest of its bodies is of utmost importance.Subject to the rules for periodic and correct goal setting and teamwork, any force majeure circumstances will be overcome, and in case of delays, they will be compensated without violating the contract / agreement deadlines.

9. Monitoring and evaluation indicators:9.1. Indicators for the full implementation of the Community-led Local Development strategy, including

the number of jobs created:(not more than 1 page)

Type Indicator UnitTarget 2023

Data source

Result Number of projects, funded by the Strategy

Pcs. 37Monitoring

LAG’s Data base

Number of applications submitted Pcs. 45Monitoring

LAG’s Data base

Number of approved applications Pcs. 42Monitoring

LAG’s Data base

Value of the approved applications BGN 4 000 000Monitoring

LAG’s Data base

Number of concluded contracts Pcs. 37Monitoring

LAG’s Data baseValue of the concluded contracts BGN 3 983 700 Monitoring

value LAG’s Data base

Value of paid projects BGN 2 933 700Monitoring

LAG’s Data baseNumber of beneficiaries, supported by the Strategy

Pcs. 34Monitoring

LAG’s Data baseNumber of innovations, implemented in the business sector

Pcs. 5Monitoring

LAG’s Data baseTotal number of activities to assist vulnerable groups and marginalized communities

Pcs. 3Monitoring

LAG’s Data base

Number of consultations, organized or carried out by the LAG

Pcs. 100 LAG Reports

Number of activities to promote the Strategy

Pcs. 20 LAG Reports

Proportion of the population on the territory, benefiting from the projects under the Strategy

% 60 %Monitoring

LAG’s Data baseNSSI

Impact Jobs created Pcs. 26Monitoring

LAG’s Data base

9.2. Indicators by measures(not more than 1 pages for indicators by measures)

INDICATORS AS PER MEASURE 4.1.1

Type Indicator Unit Target 2023 Data source

Initial Output

Number of projects, financed by the measure

Pcs. 7Monitoring

LAG’s data base and reports

Number of beneficiaries, supported by the measure

Pcs. 7Monitoring

LAG’s data base and reports

Total value of the investments /with co-financing/

BGN 1 200 000Monitoring

LAG’s data base and reports

Number of farms, supported by the livestock sector

Pcs. 1Monitoring

LAG’s data base and reports

Result Share of young farmers, funded under % 15 Monitoring

the measureLAG’s data base and

reportsNumber of farms, that have introduced a new product or technology

Pcs. 1Monitoring

LAG’s data base and reports

New plantations created dca 10Monitoring

LAG’s data base and reports

Number of value added projects for agricultural products

Pcs. 1Monitoring

LAG’s data base and reports

Impact Jobs created Pcs. 7

MonitoringLAG’s data base and

reportsLabour office

INDICATORS AS PER MEASURE 4.2.1

Type Indicator UnitTarget 2023

Data source

Starting

Number of projects, funded by the measure

Pcs. 3Monitoring

LAG’s data base and reports

Number of beneficiaries, aided by the measure

Pcs. 3Monitoring

LAG’s data base and reports

Total value of investments /with co-financing/

BGN 600 000

MonitoringLAG’s data base and

reports and beneficiaries

Result

Number of enterprises, introducing a new product or technology

Pcs. 1

MonitoringLAG’s data base and

reports

Modernized enterprises Pcs. 2Monitoring

LAG’s data base and reports

Number of enterprises, producing organic products

Pcs. 1

MonitoringLAG’s data base and

reports

Impact Jobs created Pcs. 6 Monitoring of National Statistics institute

INDICATORS BY MEASURE 6.4.1

Type Indicator UnitTarget 2023

Data source

Start

Number of projects, funded by the measure

Pcs. 8 MonitoringLAG’s data base and

reports

Number of beneficiaries, aided by the measure

Pcs. 8 MonitoringLAG’s data base and

reports

Total value of investments /with co-financing/

BGN 700 000 MonitoringLAG’s data base and

reports

Number of new tourist activities supported

Pcs. 1 MonitoringLAG’s data base and

reportsInvestments volume in tourism BGN 100 000 LAG’s and

beneficiaries’ data base and reports

Number of assisted beneficiaries for new, non-tourist services

Pcs. 2 LAG’s and beneficiaries’ data base

and reports

Volume of investment in new, non-tourism services

BGN 100 000 LAG’s and beneficieries’ data base

and reports

Result

Number of supported new activities in enterprises

Pcs. 2 MonitoringLAG’s data base and

reports

Number of innovations realized - a new service for the territory

Pcs. 2 MonitoringLAG’s data base and

reports

Supported microenterprises in the field of technical services

Pcs. 1 MonitoringLAG’s data base and

reportsImpact Total number of jobs created Pcs. 10 Monitoring

LAG’s data base and reports

Indicators as per Measure 7.2

Type Indicator UnitTarget 2023

Data source

StartStarting / Output

Number of projects, funded by the measure

Pcs. 7Monitoring

LAG’s data base and reports

Number of beneficiaries, supported by the measure

Pcs. 5Monitoring

LAG’s data base and reports

Total value of investments BGN 900 000Monitoring

LAG’s data base and reports

Number of projects for construction / improvement of buildings, related to the provision of services

Pcs. 1LAG’s and

beneficieries’ data base and reports

Result

Playgrounds built or renovated Pcs. 2LAG’s and

beneficieries’ data base and reports

Establishments for social services with improved facilities

Pcs. 1LAG’s and

beneficieries’ data base and reports

Improved youth and sports centers Pcs. 1LAG’s and

beneficieries’ data base and reports

Improved cultural centers Pcs. 1LAG’s and

beneficieries’ data base and reports

Impact

Jobs created Pcs. 3LAG’s and

beneficieries’ data base and reports

/ Population benefiting fromsmall-scale investments

Pcs. 20 000

LAG’s and beneficieries’ data base

and reportsNSSI

INDICATORS AS PER MEASURE 22

Type Indicator UnitTarget 2023

Data source

Start

Number of projects, funded by the measure

Pcs. 8Monitoring

Data base and reports of LAG

Number of beneficiaries, aided by the measure

Pcs. 8Monitoring

LAG’s data base and reports

Total value of the investments BGN 183 700Monitoring

LAG’s data base and reports

Indicators as per Measure 7.5

Type Indicator Pcs.Target 2023

Data source

Starting

Number of projects, funded by the measure

Pcs. 4Monitoring

LAG’s data base and reports

Number of beneficiaries, supported by the measure

Pcs. 3Monitoring

LAG’s data base and reports

Total value of investments BGN 450 000Monitoring

LAG’s data base and reports

Result

Number of visitors to the aided attractions

Pcs. 5 000Research

Reports of beneficieries

Number of developed tourist attractions / sites

Pcs. 1Monitoring

LAG’s data base and reports

Number of tourist, visitor or craft centers, aided by the measure

Pcs. 1Monitoring

LAG’s data base and reports

Supported marketing and advertising programs and projects for products development and destinations marketing

Pcs. 1Monitoring

LAG’s data base and reports

Impact

Visitor satisfaction with attractions and information services

% 70Research

Reports of beneficieries

Population benefiting from tourism investments

Pcs. 10 000LAG’s and

beneficieries’ data base and reports NSSI

Result

Organized and held festivals and events, related to the local cultural heritage

Pcs. 4Monitoring

LAG’s data base and reports

Renovated and improved sites of cultural and historical heritage

Pcs. 2Monitoring

LAG’s data base and reports

Cultural heritage studies Pcs. 1Monitoring

LAG’s data base and reports

Historical or ethnographic collections created or updated

Pcs. 1Monitoring

LAG’s data base and reports

Conducted marketing and advertising campaigns and events related to the valorisation of the local cultural heritage

Pcs. 1Monitoring

LAG’s data base and reports

Events related to the promotion of local products and products

Pcs. 1Monitoring

LAG’s data base and reports

ImpactSatisfaction of visitors with the events

% 70Research

10. Compliance with EU horizontal policies:(not more than 2 pages)

10.1. Gender equality and non-discrimination:

- the implementation of the principle of gender equality;

Compliance with European and Bulgarian legislation in this field will be monitored. A fundamental principle of the Community-led Local Strategy Strategy for the Promotion of Gender Equality is the creation of guarantees for equal treatment, equal access to the resources of society and equal participation in the decision-making process of women and men, with a view to their successful personal and professional realization and promotion of their equality in all areas of the LAG's activities. In implementing the activities under measure 19.4 "Ongoing Expenditure and Promotion of the Community-led Local Development Strategy", the LAG will respect the principle of around and just over 50% of direct participants in trainings, information meetings, and public discussions being women.

- contributing to the promotion of the principle of equal opportunities;

The inclusion of all population groups in the area covered will be ensured through the promotion of a community-led local development strategy. For particularly isolated groups such as Roma societies, special efforts will be made to provide information and guidance on the assistance offered under the strategy.

- creation of conditions for the prevention of

All activities in the Strategy implementation will be neutral in terms of affiliation of the beneficiaries to any group, for any reason, and will not impose restrictions, based on gender, race, nationality, ethnicity, citizenship, origin, reLAGion or belief,

discriminationeducation, beliefs, political affiliation, personal or social status, disability, age, sexual orientation, marital status, financial status, etc.

10.2. Sustainable development (environmental protection):Sustainable development means meeting the needs of current generations without compromising the ability of future generations to meet their needs - in other words, a better quality of life for all, now and for future generations. Sustainable development is finding a balance between environmental protection, economic progress and social development. Sustainable development on the LAG's territory is accepted as a mandatory norm in the implementation of the Community-led Local Development Strategy. The investments in the economy, social sphere and infrastructure that the LAG will make will focus on protecting the environment and human health, taking into account the following factors: The need for sustainable and rational use of natural resources; Ensuring economic and social well-being or providing a "social environment"; Need for emphasis on environmentally friendly technologies in agriculture and processing plants.In view of the sustainable development of the territory, the LAG Strategy Evaluation Criteria sets out priorities for projects, related to the introduction of environmentally friendly technologies and energy efficiency as well as incorporating positive environmental impacts. LAG will provide guidance to beneficiaries on the forms and modalities of incorporating the principle of sustainable development into their project proposals, as well as use part of their funds under measure 19.4 "Ongoing costs and promotion of the Community-led Local Development strategy" for specialized training of beneficiaries with regard to the European and Bulgarian legislation related to sustainable development.10.3. Promotion of employment and competitiveness:More and better jobs is one of the main expected results from the Strategy implementation. In the LAGs Project Evaluation Criteria, priority is given to job creation projects, which is a key factor in maintaining employment and generating new employment. In selecting different activities to be funded, LAG seeks to support the diversification of the local economy with a focus on high-tech, innovative and environmentally friendly industries that create diverse and attractive jobs that will keep skilled and educated young people on the territory and allow employment at higher incomes of at-risk groups on the labour market. The emphasis of the strategy is to create employment or a prerequisite for employment and income of representatives of vulnerable and minority groups.10.4. Compliance with the programs, funded by the European Structural and Investment Funds:The Vazhod-Vetrino, Vulchi Dol, Provadiya LAG Community –led Local Development Strategy includes European Agricultural Fund for Rural Development measures and Rural Development Program 2014-2020 funding. The objectives of the Strategy coincide and are fully covered by some of the objectives and priorities set out in the Program: Objective 3 of the Rural Development Program "Social-economic Rural Development, Creating New Jobs, Poverty Reduction, Social Inclusion and Better Quality of Life" by implementing all measures included in the Community-led Local Development Strategy, selected by the Rural Development Program 2014-2020 and through: Measure 7.2 "Investments in the creation, improvement or expansion of all types of small-scale infrastructure", Measure 7.5 "Investments for public use in recreational infrastructure, tourism and infrastructure "and the selected own Measure 22.The Vazhod-Vetrino, Vulchi Dol, Provadiya LAG strategy will contribute to:(a) developing and stimulating entrepreneurship and sustainable business;

(b) developing a dynamic living environment and improving the quality of life through the development of horizontal and cross-sector partnerships and synergies for initiatives of common interest;c) development of practices and models for good governance and stakeholder involvement in the territorial development as a basis for territorial development;d) development of territorial identity, marketing and brands based on specific territorial potential and products of local character.The Strategy developed fully corresponds to these goals and priorities, setting them at the local level, in accordance with the needs and potential studied and the analysis that gives the direction of development, namely investments in the economy - modern and competitive agriculture, incl. organic farming, eco-friendly and innovative, energy efficient productions for job creation and income; improving the quality of life in settlements through investments for the improvement of public spaces and buildings, improving the quality of public services, as well as the opportunities for active recreation, leisure, tourism and cultural life.