EU Funds investments and projections, preparation for the period March, 2014

Transcription

1 EU Funds investments and projections, preparation for the period March, 2014

2 Content 1.Implementation progress 2.Risks 3.Progress of

3 absorption by (M EUR, % of EU funding, progress % since ) ,4 (100%) 404,6 (8,9%) Total: (108,9%) Total 2 407,6 (100%) 3 053,2 (67% + 9%) 2 988,4 (66% + 11%) 279,9 (11,6%) Total: 2 687,5 (111,6%) 4 562,8 (101% + 5%) ERDF 1 539,8 (100%) 2 435,3 (101% + 8%) 1 574,6 (65% + 7%) 1 520,3 (63% + 10%) 49,8 (3,2%) Total: 1 589,6 (103,2%) Approved projects Payments to fianl beneficiaries CF 1 489,3 (97%; 0%) 944,1 (61% + 10%) 914,2 (59% + 10%) 583,1 (100%) 74,9 (12,9%) Total: 658 (112,9%) Recieved advance and interim payments from EC EU funding ESF 638,2 (109% + 5%) 534,5 (92% + 11%) Overcommittments 553,9 (95% + 12%)

4 1.2. Contracts by industries (M EUR, % of EU funding till ) 231,7 187,6 109,1 50,6 22,0 15, ,5 Transport / ICT (28,7%); 93,1%* Environment (15,5%); 91,7% Education (11,0%); 103,9% 256,1 Entrepreneurship and Innovation (9,2%); 88% Employment and social inclusion (8,5%); 113,6% 330,3 Urban environment (7,4%); 120,3% Science (5,8%); 96,1% Health (5,2%); 105,6% 377,1 Energetics (4,2%); 94,3% Support for EU funds management (2,5%); 98,2% 407,0 688,8 Culture (1,1%); 140,4% Administrative capacity (0,5%); 96% 488,1 Tourism (0,3%); 88,7% * - Contracts as % of available EU funding for industry

5 1.3. Progress by Ministries by (M EUR, % of EU funding) MoEPRD MoT MoE MoES 746,0 (62,5%) 729,4 (100%) 681,3 (93,4%) 449,9 (61,7%) 746,2 (100%) 750,4 (100,6%) 501,3 (67,2%) 1 222,9 (100%) 1 238,0 (101,2%) 952,1 (77,9%) 1 193,5 (100%) 1 194,5 (100,1%) 80,9 (11,1%) 48,1; ,5; 360,4 51,3 (6,9%) 47,1 244,9; 296,2 117,7 (9,6%) Total: 1 340,6 (109,6%) 102,6 270,8; 388,5 74,5 (6,2%) Total: (106,2%) 73,5 447,5; 522 Total: 810,3 (111,1%) Total: 797,5 (106,9%) Available EU funding; Total 4 403,6 meur (without technical assistance - 126,8 meur) Overcommittments; Total 404,6 meur Approved projects; Total 4 438,1 meur Payments to the funding recipient; Total 3 106,6 meur

6 1.4. EC payments by % of Member state s allocation Lithuania Estonia 78,77 % 84,15 % Poland Cyprus Latvia Slovenia Hungary Slovakia Malta Czech Republic Bulgaria 67,86 % 66,96 % 65,96% 62,90 % 59,26 % 52,62 % 52,30 % 51,12 % 50,28 % Romania 38,07 % Croatia 18,27 % 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% 1st place within ESF

7 1.5. EU funds budget execution in the division of Responsible Institutions in 2013, M EUR Responsible Institutions forecast - 856,1 M EUR; Law of Budget* 745,3 M EUR. 2. State budget expenditure fulfilment - 96,0% or 677,4 M EUR of total available budget 705,9 M EUR, non-performance 28,4 M EUR. 3. Main non-performances in the division of Responsible Institutions: - Ministry of Economics 9,8 M EUR Measures Regarding The Increase of Efficiency of Centralised Heat Supply Systems, Innovations, Promotion of Entrepreneurship, Improvement ofheat Insulation ofmulti-apartment Residential Buildings ; - Ministry of Education and Science 9,6 M EUR Priority Science and Innovations, Modernisation of Equipment and Improvement of Infrastructure for Implementation of Vocational Education Programmes; - Ministry of the Environmental Protection and Regional Development 5,9 M EUR ICT projects, Rehabilitation of Inherited Contaminated Sites; - Ministry of Finance 2,2 M EUR Tehnical assistance projects of all ministries Ministry of Transport Ministry of the Environmental Protection and Regional Development Ministry of Education and Science Ministry of Economics Ministry of Welfare Ministry of Health Ministry of Finance Ministry of Culture State Chancellery Ministry forecasts of (856,1 M EUR) Budget expenses of 2013 (677,4 M EUR) Available budget expenditure on (705,9 M EUR)

8 1.6. Cash flow and M EUR Final payment (~ Forecasted payments from EC for planning period (4 530 M EUR) 2018.g.) Planned state budget expenditure for planning period (5 039 M EUR) Forecasted payments from EC for planning period (4 389 M EUR), incl (749 M EUR) Planned state budget expenditure for planning period (4 835 M EUR), incl (886 M EUR) Total forecasted payments from EC in (2 065 M EUR) Total planned state budget expenditure in (2 279 M EUR) Payments from EC set in the Annual State Budget Law for 2014 (549.7 M EUR) 227

9 1.7.Targets for payments in 2013 M EUR, % of target ,3 45,8 656,5 (93,5%) ,3 (100,2%) 359,5 260,7 210,4 (80,7%) 85,8 (104,5%) 82,2 Feb. March April May June July August September October November December 50,3 ESF target ESF fulfillment ERDF target ERDF fulfillment CF target CF fulfillment Total target Total fulfillment

10 Content 1.Implementation progress 2.Risks 3.Progress for

11 OP - ESF The risk of losing EU funding No risk! Programme closure Actual payments (EUR) until and forecast for further years ESF "red line" (EUR)

12 OP ERDF The risk of losing EU funding No risk! Closure Actual payments (EUR) until and forecast for further years ERDF "red line"

13 OP - ERDF The risk of losing EU funding DP ERAF N+2/N Till Closure ERDF "red line" (EUR) Actual payments (EUR) till and forecast for futher years Worst case scenario: 2014 losses of EU funds up to 55 meur 2015 losses of EU funds total up to 73 meur Main problems: - Too optimistic cash flow modeling; - Many cancelations of projects Measures to be taken: - MoE and MoES develops plan of actions to acquire EU funds 100%; - MA strongly monitors intermediate terms of action plan

14 2.5. Measures to be taken: MoE measures: New call (4th) of an activity «high value-added investments»; New call (2th) of an activity «Sub-activity "Support for construction or reconstruction of industrial premises«; Strict terms for every financial beneficiary to submit 35% of declarable expenses till 1st of December, 2014; Other actions (prolongation of agreements). MoES plans new calls within activity «Support for science and research» and «Support for international cooperation projects in science and technology» (additional 30 meur of EU funds absorption). A solid plan of measures with intermediate terms should be created and approved for both line ministries. MA will evaluate the actions already taken and proposals given, as well as will strongly monitor every step to be taken within the defined terms

15 OP - CF The risk of losing EU funding - Problems in environmental and transport sector infrastructure projects - Government assignment for the ministries to carry out immediate arrangements Risk in neto loss in total for the period aprox. 18 M EUR , , , CF "red line" (EUR) CF forecast Projection of payment requests

16 Content 1.Implementation progress 2.Risks 3.Progress for

17 3.1. Functions in

18 3.2. Allocation of the functions Responsible institution Develops planning documents Develops criteria and evaluation methodology Develops rules for specific support goals (SSG) Provides SSG results and control Co-operation institution Develops project selection regulations Advises project applicants and beneficiaries Performs project selection procedures Enters into contracts and agreements with the beneficiaries Monitors the implementation of projects

19 RI and 6 CI 10 RI and 1 CI (CFLA) RI functions can delegate to CI 3.3. Comparison RI and CI both approve projects and enter into agreements CI decisons can be challenged in RI Unjustified expenditures can be recovered in administrative procedure Unclear dispute resolution if the beneficiary is a public body Evaluation criteria in regulations of the activities Unequal conditions on freedom of information about the project Clear RI and CI allocation of functions Only CI approve projects and enter into agreements CI decisions can be challenged in Managing Authority Unjustified expenditures can be recovered only in civil procedure Clear dispute resolution if the beneficiary is a public body Evaluation criteria etc. in selection rules More equal conditions, more freedom of information

20 3.4.Partnership Agreement and Operational programme «Growth and Employment» for The main documents used for developing of PA and OP Latvian National Development plan Latvian National Reforms Programme for Implementation of Europe 2020 Strategy European Commission Position Document, presented on 4 December 2012 EU's Europe 2020 strategy for smart, sustainable and inclusive growth and its flagship initiatives (f.e. Resource efficient Europe, Digital agenda for Europa). Recommendation of the EU Council National strategies and etc

21 3.5.EU funds financing by thematic objectives Strengthening research, technological development and innovation 12% 0% 10% 3% 27% 11% 5% 7% 11% 2% 12% Enhancing access to, and use and quality of, information and communication technologies; Enhancing the competitiveness of small and medium-sized enterprises Supporting the shift towards a low-carbon economy in all sectors Promoting climate change adaptation, risk prevention and management Protecting the environment and promoting resource efficiency Promoting sustainable transport and removing bottlenecks in key network infrastructures; Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty Investing in education, skills and lifelong learning; Enhancing institutional capacity and an efficient public administration. Total EU financing (ESF, CF, ERDF) for Latvia is 4.43 billion EUR

22 3.6. Time schedule for Partnership Agreement has been submitted to EC on 15 th of January 2014 (approved by Cabinet of Ministers in 17 th of December 2013) Operational Programme has been submitted to EC on 4 th of March (approved by Cabinet of Ministers in 11 th of February 2014) In 3 rd and 4 th quarter of 2014 implementation of first specific objectives will be launched Design of the National legislation base and improvement of management and control system (Guidelines and methodology) within th of March, 2014 meeting of the Provisional Monitoring Committee

23 Thank you Any Questions? for suggestions on LV EU funds system improvement