Understanding and Overcoming the Constrains to Better Absorption of EU grants at the Municipal Level. The Polish Experience

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1 Understanding and Overcoming the Constrains to Better Absorption of EU grants at the Municipal Level. The Polish Experience Mr. Tomasz J. Kayser First Deputy Mayor Poznań, Poland Ankara, March 2008

2 Presentation Agenda Information and facts about Poznań Information about EU financial instruments Experience in Pre-accession Funds implementation Structural Funds-programming periods Examples of projects implemented in Poznań Polish experience in implementing Structural Funds (benefits and problems)

3 Poznań in Europe E N Berlin POZNAŃ Warsaw Moscow Paris

4 History of the City The cradle of the Polish State; A city with 1000 years of tradition. Parisch church Cathedral Gold Chapel Old market

5 A modern city A dynamically developing European city with about 600,000 residents; Academic centre students One of the country s largest centres of economy and investment 2.8% unemployment rate (Jan.,2008) Polish leading congress and exhibition centre;(about 3000 conferences a year) Modern and dynamic centre of sports; The capital of the Wielkopolska Region. 5

6 Types of European Funds Pre-accession funds Structural Funds Cohesion Funds Community programmes

7 Pre-accession funds Programmes: SAPARD, PHARE, ISPA For countries applying for European Union membership Created on the model of Structural Funds

8 Pre-accession funds SAPARD agriculture and rural development PHARE - building institutions and investment support ISPA - environmental protection and transport

9 Pre-accession funds - gained experience - creation of a legal basis - development of administrative structures - ability to apply for funding - ability to perform financial engineering - employees experience - project-oriented thinking and acting

10 Structural Funds Pre-accesion funds ERDF European Regional Development Fund PHARE ESF European Social Fund EAGGF European Agriculture Guidance and Guarantee Fund SAPARD FIFG Financial Instrument for Fisheries Guidance Cohesion Fund ISPA

11 System of implementation EU funds in Poland National Development Plan : 5 Sectoral Operational Programmes Integrated Regional Operational Programme Technical Assistance Programme

12 System of implementation EU funds in Poland National Strategic Reference Framework for : 16 Regional Operational Programmes OP Infrastructure and Environment OP Innovative Economy OP Human Capital OP East Poland Technical Assistance Programme

13 Poznań Strategic Management Tools 1994/1995 Poznań City Strategic Development Programme 1999 Poznań City Capital Improvement Programme Long-term Financial Plan 2001 Quality of Life Indicators 2004 Poznań City Development Plan for the years

14 Projects supported by European Funds in Poznań 1.. Pre-accession funds - 9 projects total cost: 140 million euro European co-financing: 57 million euro 2. Structural funds - 42 projects total cost: 108 million euro European co-financing: 64 million euro

15 The construction of the Bridge over Cybina River total cost: 2,5 mln EURO European co-financing: 2,12 mln EURO

16 Attractiveness increase of the Wielkopolska regioncontinuation of Poznań Parish Church conservation total cost: 2,09 mln EURO European co-financing: 1,5 mln EURO

17 Rebuilding of Głogowska street total cost: 44,1 mln EURO European co-financing: 18,6 mln EURO

18 Comprehensive counselling and training programme as a chance for women from the Poznań City and District total cost: 0,87 mln EURO European co-financing: 0,69 mln EURO

19 Polish experience with using European funds Positive experience: development of regions, qualitative approach, change in the way of thinking about UE funds Negative experience: implementation of projects, funds management, administrative capacity

20 European Union Funds as a chance for regions Opportunity for making up for the development lag Support for innovative solutions Decentralisation of administration

21 Qualitative approach instead of a quantitative one Focus on projects which are instrumental for the development of the region Selection of projects based on analyses of the needs of the region and the possibilities of implementation programming principle (strategies and development programmes)

22 Change in the attitude towards European funds Funds for pro-development projects Complementing instead of replacing own funds (subsidiarity principle)

23 Obtaining funds is only the first stage project implementation Realisation of anticipated results Proper expending of funds (purposefulness, accordance with legal requirements) Guarantee of the durability (life-time at least 5 years after the completion) Irregularities may result in the obligation to repay the funds, even a few years after the funding was completed

24 Structural Funds management Centralized structure of management Excessive formalisation of procedures Too frequent changes in procedures and guidelines Delays in transferring funds Failure to draw on the experience from managing pre-accession funds

25 Insufficient administrative potential Lack of long-term strategies for HR management Insufficient preparation of the personnel High rotation of administrative workers

26 Poznań City Hall Tomasz J. Kayser Deputy Mayor Plac Kolegiacki 17, Poznań, Poland tel./fax (+4861) We invite you to Poznań MARCH 2008