EUROPEAN UNION EUROPEAN REGIONAL DEVELOPMENT FUND COHESION FUND. OPportunities for better life 2012 ANNUAL REPORT

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1 EUROPEAN UNION EUROPEAN REGIONAL DEVELOPMENT FUND COHESION FUND OPportunities for better life 2012 ANNUAL REPORT OPERATIONAL PROGRAMME ENVIRONMENT

2 OPERATIONAL PROGRAMME ENVIRONMENT ANNUAL REPORT IDENTIFICATION OPERATIONAL PROGRAMME Objective concerned: Convergence ANNUAL IMPLEMENTATION REPORT Eligible area concerned: Bulgaria Programming period: Programme reference number (ССІ Code): 2007BG161PO005 Programme title: Operational Programme Environment Reporting year: 2012 Date of approval of the annual report by the monitoring committee: 30 May OVERVIEW OF THE IMPLEMENTATION OF THE OPERATIONAL PROGRAMME 2.1. ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS Information on the physical progress of the operational programme: Core indicators Indicators Indicator 2: Additional population to be connected to WSS network or to benefit from reconstructed/rehabilitated WSS network Indicator 5: Constructed and completed integrated waste management systems Achievement Target (1) Baseline Achievement Total Target (1) Baseline 5 (5) 5 (5) 5 (5) 5 (5) 5 (5)

3 Additional indicators Indicators Total Indicator 1: Population connected to WWTP Indicator 2: New and rehabilitated WWTP Indicator 3: Population served by integrated waste management systems Achievement % (6) 2.40% Target (1) % Baseline % % (3) % (3) % (3) (3) Achievement 1.68% (6) 1.727% (6) 1, % (3) % (2) Target (1) Baseline 1 (4) 1 (4) 6 (4) 11 (4) Achievement Indicator 4: Percentage of NATURA 2000 (protected zones and protected areas) to be mapped/managed Indicator 5: Number of mapped protected areas and zones of NATURA 2000 Indicator 6: Number of elaborated management Target (1) Baseline Achievement Target (1) Baseline Achievement Target (1) Baseline Achievement

4 Indicators Total plans for protected areas and zones of NATURA 2000 Indicator 7: Number of habitat and species for which preservation activities have been implemented Target (1) Baseline Target n/a n/a n/a n/a n/a 230 Baseline (1) In the OPE, the targets for all indicators are defined for the years 2010 and (2) End of period value aims to measure only the achievements completed with financing from Environment OP (3) NSI Statistical Reference Book "Environment" the data are for Afterwards the NSI published data for 2007 (42.2 %), 2008 (43.8%), 2009 (45.2%), 2010 (47.6%) (4) The baseline value refers to WWTPs completed with financial assistance from ISPA. 5 new WWTPs were constructed in 2009 and five more in 2010 and (5) The baseline value refers to integrated waste management systems completed with financial assistance from ISPA. (6) The data refer only to OPE's contribution to the total value of the indicator. The value of 2.40% represents the achievement on the indicator at national level. 0 FINANCIAL INFORMATION (ALL FINANCIAL DATA ARE EXPRESSED IN EUR) Priority axes by source of funding (EUR) Total funding under the OP (Union and national counterpart) Basis for calculating the Union contribution (public or total Total certified eligible expenditure paid out by the beneficiaries (1) Corresponding public contribution (1) Performance rate (%) a b c d е= d/a for public costs Priority axis 1 (CF+SB) Public costs Priority axis 2 (ERDF+SB) Priority axis 3 (ERDF+SB) Priority axis 4 (ERDF+SB) Public costs Public costs Public costs Total (1) The information is presented cumulatively and refers to the period

5 Total tranches received from EC under OPE at amount to EUR , allocated as follows: Advance payments from EC: - Cohesion Fund: EUR European Regional Development Fund: EUR ,72 Advance payments from EC: EUR Interim payments from EC: - Cohesion Fund: EUR European Regional Development Fund: EUR ,75 Interim payments from EC: EUR Total payments from EC: EUR INFORMATION ABOUT THE BREAKDOWN OF USE OF THE FUNDS BY CATEGORY Indicative breakdown of the Community contribution (EUR) by category: Priority theme Form of finance Territory Economic activity Location Community contribution BG BG BG BG BG BG BG BG Total Value of signed contracts of the Community under OPE, by category, at : Priority theme Form of finance Territory Economic activity Location Value of signed contracts by priority theme (EUR) BG BG BG BG

6 BG BG BG 0.00 Total The amounts include European and national co-financing and are based on information from LOTHAR. As major projects are reported in LOTHAR based on the value of contracts signed with contractors and not on the total amount of the grant, there is difference in the contracting data between UMIS and LOTHAR. Legend: Codes for the priority theme dimension Code Priority theme 44 Management of household and industrial waste 45 Management and distribution of water (drinking water) 46 Water treatment (waste water) 50 Rehabilitation of industrial sites and contaminated land 51 Promotion of biological diversity and nature protection (including NATURA 2000) 81 Mechanisms for improving good policy and programme design, monitoring and evaluation at national, regional and local level, capacity building in the delivery of policies and programmes 85 Preparation, implementation, monitoring and inspection 86 Evaluation and studies; information and communication Codes for the form of finance dimension 01 Grant aid Codes for the territorial dimension territory type 00 Inapplicable 01 Urban zones Codes for the economic activity dimension 09 Collection, purification and distribution of water 12 Construction 21 Activities linked to the environment 22 Other unspecified services Codes for the location dimension BG - Bulgaria 6

7 ASSISTANCE BY TARGET GROUPS There is no relevant information to be supplied. ASSISTANCE REPAID OR RE-USED Resources from the programme were released for re-use in several cases, as a result of: Terminated grant contracts; Savings from the implementation of completed projects; Financial corrections applied to completed projects; Contractor agreements/parts thereof not verified under completed projects. Financial corrections are made to ensure that Community funds are properly spent. Pro-rata financial corrections (when it is not possible to quantify the amount precisely) are determined in accordance with a special methodology. For grant contracts signed before 05 July 2010, the Guidelines for determining financial corrections to be made to expenditure co-financed by the Structural Funds or the Cohesion Fund for non compliance with the rules of public procurement apply. For contracts signed after that date, the methodology set out in DCM No. 134 / 5 July 2010 on approval of a Methodology for determining financial corrections to be made to expenditure related to the implementation of operational programmes co-financed by the EU structural instruments, the European Agricultural Fund for Rural Development and the European Fisheries Fund applies. At 31 December 2012, the financial resource released as a result of terminated contracts amounts to BGN At 31 December 2012, the financial resource released from completed projects as a result of savings, financial corrections and contracts not verified amounts to BGN Breakdown of the released resource by priority axis: Priority axis Released resource Priority axis 1 BGN Priority axis 2 BGN Priority axis 3 BGN Priority axis 4 BGN Total BGN In 2012 alone, the financial resource released from completed projects as a result of savings, financial corrections and contracts not verified amounts to BGN Breakdown by priority axis: Priority axis Released resource Priority axis 1 BGN Priority axis 2 BGN

8 Priority axis 3 BGN Priority axis 4 BGN Total BGN QUALITATIVE ANALYSIS TOTAL ACHIEVEMENT At 31 December 2012, under OPE: Contracting stands at billion BGN, making up % of total allocations to the programme. Payments on signed contracts stand at more than MBGN, making up % of total allocations to the programme. In progress: 236 projects totalling billion BGN in value. Successfully completed: 122 projects with 142 MBGN in payments. OPE budget Contracting Payments Priority axis 1 Priority axis 2 Priority axis 3 Priority axis 4 Total for OPE % % % % % % % % % % 8

9 *In billion leva In 2012, there was further stepping up of payments under Environment OP In the past year alone, payments stand at almost 240 MBGN - exceeding the values in any of the previous years and by 66 % the value for Thus at 31 December 2012 total payments stand at almost 626 MBGN, making up % of total allocations to the programme. Contracting under the programme also registers notable increase in 2012, by 2.5 times against the whole period up to the end of At the end of 2011, contracting stands at some billion BGN (53.23 % the programme's budget) whereas at the end of 2012 contracts in progress total billion BGN ( %) in value. 9

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11 Achievement by planning region at 31 December 2012 CONTRACTED PAID FUNDS From left to right: North-West planning region, North Central planning region, North-East planning region, South-West planning region, South Central planning region, South-East planning region. *In million leva CONTRACTED PAID FUNDS PER CAPITA From left to right: North-West planning region, North Central planning region, North-East planning region, South-West planning region, South Central planning region, South-East planning region. In leva 11

12 2012 INDICATIVE ANNUAL WORK PROGRAMME The following procedures were scheduled for announcement under the 2012 Indicative Annual Work Programme: Under priority axis 2: 1. "Establishment of Haskovo Regional Waste Management System", with BGN in total grant and indicative announcement date 05 July The procedure was announced on 04 July Specific beneficiary is Haskovo Municipality. The procedure aims to support Haskovo Region in finding a sustainable solution for management of the whole quantity of household waste generated on the territory of the municipality. The total amount of the grant is BGN "Implementation of activities for the closure and reclamation of municipal landfills which do not meet the regulatory requirements under Operational Programme Environment ", with BGN in grant and indicative announcement date 15 July The procedure was announced on 10 August Specific beneficiary is the Enterprise for Management of Environmental Protection Activities (EMEPA). The purpose of the procedure is to make funds available to EMEPA for discharge of the functions for implementation of environmental projects for closure of municipal landfills that do not meet the regulatory requirements assigned to the enterprise by DCM No. 209/2009. The procedure is aimed at achieving compliance with the requirements of Directive 1999/31/EC and of the national waste management legislation. The maximum amount of grant for the procedure is BGN Under priority axis 3: 1. "Transport and technical support for the implementation of activities in protected areas the exclusive title to which is vested in the State", with BGN in grant and indicative announcement date 10 August The procedure was announced on 30 August The specific objective is to support the implementation of planning and management activities in protected areas by the national park directorates and the regional inspectorates of environment and water. Funding will be provided for the purchase of motor vehicles and equipment which are justified as a priority for the discharge of the functions of the above structures of MoEW. The total amount of the grant is BGN EVALUATIONS OF OP ENVIRONMENT The following evaluations of OP Environment were carried out in 2012 (and in January 2013): Mid-term evaluation of OP Environment covering the period ; Ongoing evaluation OP Environment for 2011; Internal evaluation of OPE covering the period May 2012; First environmental assessment of OP Environment covering the period Mid-term evaluation of OP Environment

13 The mid-term evaluation of OPE was carried out by an external contractor - Consortium European Analyses and Evaluations 1. The final text of the document was delivered to MA of OPE on 21 January Summary of the main conclusions and recommendations OPE is compliant with the national and European legislation and strategic documents. In that light, the programme is effectively targeted and relevant for the national needs and priorities and for the Bulgarian society. Room for improvement is seen mainly in respect of programme's implementation efficiency - there is some lack of specificity, prioritization and linking of objectives with deadlines, in particular in respect to biodiversity conservation and restoration. The need to improve the system of indicators and conduct a detailed analysis informing proposals for system's improvement has been taken into account. A significant gap in the programme's design is the absence of indicators for priority axis 4. With a view to streamlining monitoring and control of ongoing results and taking timely action to improve the status and performance, MA should design evaluation indicators for priority axis 4. In order to address the low absorption rate, direct contracting with specific beneficiaries was taken on board, making it possible to channel funds to priority projects and establish continuous dialogue in the preparation of project proposals. Despite that, information from MA shows that at 31 December 2010 payments stand at EUR m, making up only 7 % of total allocations to the programme. The absence of approved methodology and legislative basis for applying financial corrections for established irregularities is pointed out as the main reason for the low absorption rate of OPE. The other recommendations are accessible in OPE's website, in the Programme Evaluation section. Ongoing evaluation of OP Environment for 2011 The ongoing evaluation of OPE was carried out by an external contractor - Consortium DZZD (company under the Law on Obligations and Contracts) "European Analyses and Evaluations". The final text of the document was delivered to MA of OPE on 21 January Summary of the main conclusions and recommendations In order to address the low absorption rate, direct contracting with specific beneficiaries was taken on board, making it possible to direct funds to priority projects and establish continuous dialogue in the preparation of project proposals. Despite that, information from MA shows that payments for 2011 stand at EUR m, making up only 4 % of total allocations to the programme. Delayed procurement and contracting for the projects, caused by complaints lodged by unsuccessful candidates, and lack of proper planning by the beneficiaries at the start of procedures for selection of external contractors are pointed out as the main reason for the low absorption rate of OPE over the evaluation period ( ). 1 Consortium European Analyses and Evaluations was established on by European Development Consulting EOOD, Bulgaria 40%; Kommunalkredit Public Consulting GmbH, Austria - 30%, Sofia Consulting Group, Bulgaria 30% 13

14 The conclusions and recommendations of the ongoing evaluation for 2011 largely coincide with those of programme's mid-term evaluation. The full text of the recommendations is published in OPE's website, in the Programme Evaluation section. Interim internal evaluation of OPE covering the period between 1 January 2007 and 31 May The interim internal evaluation of OPE was conducted by an Assistant for the Management of European Programmes and Projects within the Managing Authority. Main conclusions and recommendations Internal evaluation of programme's performance was conducted in 2012 at the initiative of OPE's MA. Questionnaires were distributed to all beneficiaries; interviews with IB and MA experts were held. The self-assessment was principally aimed at a review and evaluation of different aspects of OPE's implementation, including the progress towards programme's objectives, as well as at formulating priorities for the next programming period The review of MA's decisions and actions taken on the basis of an analysis of the information from the ongoing and regular monitoring of projects' implementation, as well as the results of the audits and evaluations indicate a constant focus, from the start of the programme up to the evaluation exercise, to improve the efficiency in OPE's management and implementation. A number of actions leading to higher absorption of EU funds and successful implementation of funded projects have been taken. The following recommendations can be formulated on the basis of the self-assessment: Design unified tender document templates in support of beneficiaries; Online project application and reporting; There should be regular posting of answers to and explanations on questions about projects' preparation and implementation in OPE's website; Increase the number of preliminary consultations and meetings with potential beneficiaries to clarify issues and give practical advice on the selection of consultants preparing project proposals; Organize meetings of beneficiaries for sharing of experience and good practices related to projects' implementation; Avoid significant changes to the reporting rules and templates within the programming period; Organize focused information campaigns for the general public to present in detail upcoming projects or projects in progress in a language that is clear and more accessible to ordinary citizens. It is advisable to organize trainings for the beneficiaries on how to communicate better with the local communities; When assessing the risk level of projects, it is advisable to take into account the implementation of projects which have already received funding and/or other projects implemented in parallel with those under OPE, consulting also other operational programmes; The design, maintenance and update of an OPE electronic information system should be made a priority because it would save time and efforts for the processing and analysis of information about funded projects; Optimize the communication between MA and IB; Pursue a consistent staff incentivization policy and create conditions for career development and adequate pay; 14

15 Provide opportunities for flexible hiring of experts and consultants in IB and MA to give, as necessary, specific opinions on the evaluation and implementation of projects; Set up regional offices for the next programming period to provide direct control on projects' implementation and assistance to beneficiaries on problems they encounter in their work. First environmental assessment of Environment OP, covering the period The first environmental assessment of OPE covering the period was carried out pursuant to Environmental Assessment Opinion No. 1-1/2007 issued by the minister of environment and water. It was completed with some delay caused by late publication of the data collected and aggregated by the National Statistical Institute (NSI). The evaluation was carried out by an expert within OPE's MA. Summary of the main conclusions and recommendations The projects implemented under the programme result in: Significantly improved environmental balance in the investment regions; Improved living environment for plant and animal species in the investment regions; New job positions for the implementation of OPE's objectives and investments; contractors gain specific experience in the implementation of projects funded from European programmes; The programme is the main funding source for the design of environmental investment projects for the WSS and the Waste sector; Improved environmental culture of the beneficiaries and the whole society; Capacity building in the municipal administrations, as well as in the consultancy and construction business, for the management of national-scale environmental projects. Recommendations: Where project coordinators are unable to solve a project case, they should bring it to the attention of the competent authorities in order to avoid significant delays. This obligation should be included in the job descriptions of all project coordinators who shall be liable for inaction; The preparation of projects for the period should start in 2013 at the latest in order to have available an adequate project pipeline that will secure the start of the programme and subsequently good performance on the programme's objectives; There is a need to take further action to motivate the beneficiaries, in particular the individuals engaged in projects' management. This will contribute not only to sound project management, but also to better control of the contractor. Indicative measures include: ensuring incentivizing pay matching the responsibilities; providing opportunities for qualification improvement, travel for consultations, exchange of experience, trainings; Making experts available for field consulting would give the beneficiaries more peace of mind in the management of projects. Most needed are consultations with WSS engineers, experts in the construction of waste treatment facilities, as well as legal and financial experts; Provision by OPE, before the start of the project, of induction training to those engaged in the project's management would be considered good practice. 15

16 AUDITS OF OPE In 2012, three audit institutions - the Audit of EU Funds Executive Agency (AEUFEA), the National Audit Office of the Republic of Bulgaria, and DG REGIO of the European Commission - delivered four final audit reports. Fourth System Audit to obtain assurance in the effective functioning of OPE's management and control systems (AEUFEA) The audit included a review on Key Requirement 2 and a review on Key Requirement 7. The final report (28 May 2012) formulated 7 recommendations, including three on findings with low, 3 with medium and 1 with high risk. All of the seven findings were closed and this was reported also in the 2012 Annual Control Report prepared by the Audit Authority. Operational audit to provide assurance that the statements of expenditures ( ) are correct and the underlying transactions are legal and regular (AEUFEA) Upon analysis of the final results for audit purposes, the accumulated error in the audit sample for the certified expenditures under OPE for the period between 01 January 2011 and 31 December 2011 is BGN , or 1.35 % of the audited % of certified expenditures (including the additionally checked requests for payment) and corresponds to financial corrections for 15 irregularities with financial implications under 10 projects, as follows: - CF (axis 1 of OPE): BGN or 1.98 % under 9 projects. - ERDF (axis 2 and axis 3 of OPE): BGN or % under 1 project. According to the applicable Commission Guidelines, the Audit Authority extrapolated the error. After the extrapolation, the total extrapolated error in the expenditures declared to the Commission in 2011 is BGN , or 1.98 % of the expenditures declared to the Commission in To correct the error, MA of OPE agreed, on a proposal by AEUFEA, to apply a flat rate financial correction at BGN or 2% of the expenditures not audited, exclusive of the contracts to which MA applied financial corrections at 25 % of the expenditures of the respective contract for non-compliance with the public procurement legislation. Mission 2011/BG/REGIO/J2/944 Complementary evaluation planning memorandum "To obtain assurance on the functioning of the management and control systems through the audit of high risk operational programmes/areas and horizontal themes ( ) (European Commission) In the final audit report (21 August 2012), the Commission concluded that the Managing Authority has taken adequate action to address the recommendations and they were closed. Audit of OP Environment Priority Axis 01 "Improvement and development of water and waste water infrastructure" and 02 "Improvement and development of waste treatment infrastructure" - covering the period (National Audit Office of the Republic of Bulgaria) 16

17 In a report on the follow-up of recommendations the audit team concludes that 5 of the 6 recommendation are fully addressed and 1 is partially addressed. No other actions are recommended. 17

18 2.2. INFORMATION ABOUT COMPLIANCE WITH COMMUNITY LAW Towards successful implementation of OPE, the following measures have been identified, aiming to improve national environmental, spatial planning and public procurement legislation: Laws The Spatial Development Act saw 9 amendments in The main one relevant for the operational programme was enacted with SG, No. 82/26 October 2012 and regulates that the master plans of cities and the land thereof or of settlement formations shall specify the territories of possible spread of predictable natural disasters, as well as the necessary preventive measures and the method of development and protection. Permissions for the drafting of detailed plans shall be granted by a decision of the municipal council on a proposal by the mayor. The assignments for drawing up draft detailed development plans shall be submitted to the Minister of Environment and Water or to the respective regional inspectorate of environment and water for identification of the applicable environmental procedures. The municipality shall communicate the draft detailed development plans to the stakeholders by a notice published in the State Gazette; the same communication procedures shall be used also for draft detailed development plans of linear sites of the technical infrastructure outside the boundaries of settlements and settlement formations. Draft detailed development plans covering several municipalities or sites of regional importance shall be discussed by the regional expert councils and draft detailed development plans covering more than one region or sites of national importance shall be discussed by the National Expert Council and communicated by the municipal administrations. Notices of issue of building permits accompanied by EIA decisions or screening decisions shall be posted in the website of the permit issuing authority and shall specify the method of making the content of the permit and of the accompanying document publicly available. It is further regulated that for any construction projects in relation to the concession the concession granting entity shall be a contracting authority and the concessionaire shall, at its own risk, represent the contracting authority in the development and approval of investment projects and the authorization, implementation and commissioning of construction works. Construction projects shall not be commissioned in the absence of a fixed amount of deductions per unit of deposited waste. Municipality mayors are delegated responsibilities for the termination and demolition of construction works falling under categories 4 through 6. The Public Procurement Law was amended three times in The main point is that the Regulation on the Award of Small Public Procurement Contracts is repealed. It is further regulated that candidates or tenderers who, under the law of the Member State in which they are established, are entitled to provide the relevant service, supply or constructions works, shall not be rejected on the grounds of their status or legal form. An exception is introduced to the effect that the law shall not apply to utility contracts awarded by contracting authorities, which are territorial structures of central government bodies or associations thereof, to companies registered under the Municipal Property Act, which are contracting authorities and satisfy cumulatively the following conditions: a) the capital of the company is fully owned by the municipality; b) the company is subject to the same controls as those carried out by the contracting authority over the units within its structure; c) the scope of activity as per its rules of incorporation includes provision of utility services; d) at least 90% of its turnover is from provision of utility services to the contracting authority or an association of contracting authorities. The threshold values for award of public contracts are updated and determined. It 18

19 is expressly provided that the Public Procurement Agency shall be the authority which shall exercise preliminary control on procedures financed fully or partially by the EU funds. The words "or equivalent" shall be added to any reference to a standard, specification, technical approval or other technical reference. With a view to limiting the provision of documents maintained in electronic registers, the contracting authorities shall not provide these on paper carrier. A new chapter regulating the terms and procedure, in particular the public invitation procedure, for award of public contracts with values up to certain thresholds is included. The terms and procedure for announcement and evaluation of proposals submitted pursuant to this procedure are laid down. The appeal procedure and authorities for each procurement phase are set out. Definitions of terms such as "subcontracts" and "utility contracts" are given in the additional provisions of the act. A new Waste Management Act was passed in It regulates the measures and controls to protect the environment and human health by preventing or reducing the adverse impacts of the generation and management of waste and by reducing overall impacts of resource use and improving the efficiency of such use. The act lays down the requirements to products which generate hazardous and/or ordinary waste in the course of their production or after their enduse, and the extended producer responsibility for such products in order to encourage the reuse and the prevention, recycling and other recovery of waste. New definitions of waste are introduced, including "hazardous waste", "waste oils", "biowaste", "trader", "broker", "separate collection", "prevention", "re-use" "preparation for reuse" are introduced and the scope and coverage of the Act are refined. The definitions of "recovery" and "re-use" are modified to ensure a clear distinction between the two concepts. The concepts "by-products" and "end of waste" are introduced and the criteria and conditions under which a substance or an object may be regarded as not being waste, as well as the conditions under which certain waste ceases to be waste, are set out. The purpose of this amendment is to take into account the fact that many by-products are used directly before becoming waste and to encourage recycling and lower use of natural resources by transforming certain waste into valuable resource. The end-of-waste criteria target mainly the following groups of waste: construction and demolition aggregates, metal scrap, tyres, textile, compost, waste paper, and glass. A new five-level waste management hierarchy is introduced. It makes waste prevention the first priority and requires that re-use and material recycling should be preferred to energy recovery from waste. Departure from this hierarchy is allowed for specific waste streams when justified for reasons of technical feasibility, economical viability and environmental protection. Recycling targets are set for household and construction waste: By 2020, the preparing for re-use and the recycling of waste materials such as at least paper, metal, plastic and glass from households and possibly from other origins as far as these streams are similar to waste from households shall be increased to a minimum of overall 50% by weight; By2020, the preparing for re-use, recycling and other material recovery, including backfilling operations using waste to substitute other materials, of non-hazardous construction and demolition waste excluding naturally occurring material shall be increased to a minimum of 70 % by waste. 19

20 The Act sets out clear obligations for municipality mayors regarding the management of municipal waste on the territory of the municipality and the establishment of legal mechanisms for fulfilment of the new commitments. The Act refines the waste management obligations of municipality mayors by introducing requirements for achievement of recycling and recovery targets for municipal waste. Municipality mayors are obligated to provide sites for free disposal of separately collected waste from households, including bulky, hazardous, construction, ferrous and non-ferrous metal waste, etc., in all settlements of more than PE in the territory of the municipality. In addition, municipal administrations are given the opportunity to set requirements to the sites for disposal of paper, cardboard, plastic and metal waste. The existing requirements to municipalities to establish regional associations for the construction and operation of common municipal waste treatment infrastructure are preserved. The Act sets mandatory targets for the preparing for re-use and the recycling of waste materials including paper, cardboard, metal, plastics and limiting the quantity of landfilled biodegradable municipal waste to 35 % of the total quantity of such waste generated in Bulgaria in The separate collection systems for waste from households shall cover at least inhabitants on national territory and shall include all settlements of more than 5000 PE and all resort settlements. The Act also provides for separate collection of waste from shopping, administrative and manufacturing sites. The Act sets recycling and recovery targets for non-hazardous construction waste at a minimum of 70% by weight, exclusive of uncontaminated excavated soils and other naturally occurring material. Construction waste from demolition or reconstruction of buildings and facilities shall be treated and transported by the producers of waste, including the contracting entity of the construction or demolition works, the contractor of the construction or demolition works or a third party, under a written contract. The act sets a requirement for approval of a National Waste Management Plan of a scope pursuant to requirements of the Directive, to replace the existing national programme. A Waste Prevention Programme shall be developed within the plan. The adoption of this Act provides a basis for improved waste management in the country without risk to human health and the environment, as well as for a notable increase in the quantity of recycled and recovered waste. Decrees and decisions of the Council of Ministers DCM No. 70/3 April 2012 amends DCM No. 55 to enable beneficiaries other than contracting authorities under PPL to amend in exceptional cases performance contracts concluded pursuant to DCM No. 55. Exceptions are detailed - force majeure, changes to administered prices, extension of the validity of a continuous or periodic performance contract. This adds certain flexibility which will facilitate project implementation. DCM No. 5 was adopted in January It sets the terms and procedure for design of the strategic and programming documents for the management of CSF funds in the programming period, as well as the responsibilities for conclusion of the Partnership Agreement, negotiations with the Commission and design and co-ordination of the operational programmes. The Decree establishes a working group to develop the Partnership Agreement. The group comprises representatives of the Central Coordination Unit, the Certifying Authority, the Audit Authority, the Managing Authorities of the operational programmes, the national policy 20

21 making institutions, NSI, NAMRB, employer organizations, organizations of people with disabilities, the academic circles, the non-governmental sector. It is responsible for preparing the Partnership Agreement; ensures its coherence with the principles of partnership, equality between men and women and sustainable development and with the applicable European and national legislation; provides horizontal coordination of the content of the different programmes; ensures lack of overlap between the measures of the different programmes and compliance with the principle of complementarity between national and EU funds. Thematic working groups are established to prepare the programmes for the programming period. The organizations involved in the process and the responsibility of members are specified. The time frames for development of the operational programmes and the Partnership Agreement for the new programming period are set out in the orders for establishment of the working groups. CoM Decision No. 328 approved the list of thematic objectives to be included in the Partnership Agreement. They should correspond to the following lines of action: strengthening research, technological development and innovations; enhancing access to, and use and quality of, information and communication technologies; 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, and others which are in harmony with the strategy Europe A list of programmes and the lead institutions for the development of each programme was approved. The lead institution for the operational programme for environment is the Ministry of Environment and Water. Within five months after the approval of the Multiannual Financial Framework by the EU Council, the minister for EU funds management introduced to the Council of Ministers for approval a proposal for the financial resources for each operational programme in the programming period. CoM Decision No. 289 of April 2012 approved the updated National Reform Programme (NRF) of the Republic of Bulgaria in fulfilment of the strategy "EUROPE The NRF ( ) was adopted in April The current update ( ) was developed within the 2012 European Semester and addresses the recommendations made in the conclusions of the Annual Growth Survey Together with the Convergence Programme of the Republic of Bulgaria ( ), NRF presents Bulgarian government's measures and policies in response to the recommendations and to Council's opinion of 12 July The implementation of the measures set out in NRF leads to fulfilment of the commitments for enhanced competitiveness, higher employments and sustainable public finance made by Bulgaria under the Euro Plus Pact. The measures envisaged in the current update of the programme address the existing growth challenges and focus on attainment of the national targets for smart, sustainable and inclusive growth. They are aligned also with the integrated guidelines and the seven flagship initiatives of "Europe 2020". By Decision No. 668 of August 2012, CoM approved a list of actions, time frames and responsible institutions for fulfilment of the ex ante conditionalities for the funds from the Union for the programming period. The basis for action is provided by Annex IV of the draft Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European 21

22 Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No. 1083/ SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM Absence of decent project proposals. To ensure that projects of high quality are submitted, back in 2010 MA introduced a requirement that only projects with issued preliminary opinions for compliance with the requirements they have to satisfy shall be registered for evaluation. For each project proposal, MA makes recommendations in the opinion issued, but the beneficiaries sometimes lack the will or the ability to effect the recommended corrections because the final acceptance of the work of contractors has been completed. Thus, project proposals that have not complied with the recommendations made in the opinion are submitted for evaluation. Such an approach by the beneficiaries has created serious problems for the evaluation committees which have to send the documents back for rework more than once. Whenever a project is sent back for rework the time for evaluation ceases to count because in most cases the beneficiaries have requested extension of the period specified by the expert working group. All project proposals are evaluated within the regulated period (66 working days), but when the time for rework is added, the period of evaluation considerably exceeds the regulated levels. Appeal of procurement procedures announced by beneficiaries The economic and financial crisis caused market shrinkage in many sectors, including construction and design. The fresh funds under the operational programmes are the necessary breath of fresh air for the business, so the cut-throat competition for winning public procurement contracts under OPE continued in Fifteen companies on average purchase tender documents for the announced calls for proposals and minimum 5 apply. Under these circumstances, there is an abundance of appeals against the decisions for selection of contractors by discontented candidates. Some appeals are unreasonable, but going through every step of the procedure (CPC and SAC) takes months during which the beneficiary cannot sign the contract with the selected contractor and start implementing the project activities. Measures taken by OPE's team to step up programme's implementation: Support to the water sector reform As regards the measures to complete the water sector reform, steps have been taken to include the Ministry of Regional Development and Public Works (MRDPW), in its capacity of an institution responsible for the implementation of the reform, as a new beneficiary under priority axis 1 "Improvement and development of water and waste water infrastructure" of OPE. The close cooperation between the two institutions lead to announcement by MA of OPE of the procedure "Strategic planning and capacity strengthening of the structures engaged in the water sector reform to ensure sustainable water infrastructure management". On 16 March 2012 MRDPW submitted to MoEW for evaluation a project worth 16.8 MBGN for reform and sustainable development of the water sector and sustainable management of national water infrastructure through actions for: Strategic planning in the water sector - drafting regulations and a sector strategy for the water sector; building an integrated information system for water services; 22

23 Strengthening the capacity of: the MRDPW structures engaged in the coordination and control of the water sector reform, WSS operators and WSS associations for water system management and planning provided in the Water Act. The project was launched on 21 July 2012 and is expected to be completed by the end of 2014 at the latest. Support to the waste sector reform In addressing the need to better implement the waste management legislation, the project "Transposing the requirements of Directive 2008/98/EC on waste and repealing certain Directives in the national legislation" under priority axis 4 "Technical Assistance" of OPE was completed in August The project "Technical assistance in the field of waste management" is in progress. The following strategic documents are to be developed: Methodology for determining the morphological composition of municipal waste to be used by the local authorities the municipalities, in strategic decision-making on the selection of a technology or in determining the capacity of waste treatment facilities. Studying the opportunities to implement deposit and return systems for certain types of packaging and packaging waste in Bulgaria Preparing written opinions for the Geotechnical and foundations engineering part of conceptual or detailed designs of project proposals for grants under priority axis 2 of Environment OP "Development of bio-waste management regulations and establishment of a system and a National Organization to ensure the quality of the compost. The project results will contribute to alignment of Bulgarian waste management legislation with EU requirements. The implementation of the above measures will help prevent and minimize possible ex ante conditionalities for the next programming period. Rigorous control and regular analysis of the financial implementation of OPE The financial implementation of the programme was analysed on a regular basis in This is done with a view to taking timely action to step up the pace of verification of the requests for payment submitted by beneficiaries. The good practice of preparing quarterly action plans for verifications and payments under the programme established in 2011 continued in Thus, by setting shorter-term and more specific objectives it is possible to better track their implementation and take corrective measures if delays are established. Signing of preliminary contracts with beneficiaries This measure has resulted in timely announcement of procurement procedures and signing of contracts with contractors, thereby stepping up construction works and ensuring compliance with the project completion deadline. Meetings with municipalities with projects in evaluation have been held since the beginning of 2012 to explain the purpose and conditions at which preliminary contracts can be signed. This is admissible in the case of a confirmed scope of the investment or upon a first opinion by the Expert Working Group. Trainings provided to beneficiaries 23

24 In 2012, 272 individuals took part in 7 trainings organized OPE on the following topics: Preparing documents for the selection of a contractor for construction and supervision of building works 31 people; Management and implementation of projects under priority axis 3 of OPE two trainings with 34 and 28 participants; Training of MoEW chief accountants to prepare statements of the cash-based execution of extrabudegtary accounts 20 people; Management and implementation of projects under priority axis 2 of OPE 20 people; Training on the terms and procedure of receiving, spending and accounting of funds under OPE-financed projects OPE 61 people; Implementation of DCM No. 330/05 December people Training was provided to representatives of municipal administrations, NGOs, MoEW structures. Measures taken for successful implementation of beneficiaries' projects At its meeting on 1 March 2013, the resigned Council of Ministers adopted a decision which allows the minister of environment and water as a contracting authority for Environment Operational Programme, (OPE) to make, as necessary, payments to beneficiaries in amounts exceeding by up to ten per cent the total financial resources of the programme, towards the successful implementation of their projects. In the present unstable political situation, this decision was necessary in order to guarantee to the beneficiaries of OPE that their projects remain a national priority and the implementation depends solely on beneficiaries' activeness and the motivation of the municipal teams. All the same, several conditions have to be cumulatively met for the disbursement of the funds: The projects for which the expenditures are made must have been evaluated and approved for OPE funding; The beneficiary must have conducted procurement procedures and signed contracts with contractors (commercial contracts) for the project activities; The expenditure to be reimbursed must be eligible for financing from the operational programme; Expenditures must have been made legally and pursuant to the rules of the operational programme. At the date of this report, the commercial contracts signed by the beneficiaries make up almost 40% of the programme's resource. Owing to the efforts of the municipalities accross the country, the announced procurement procedures as a result of which contracts with contractors are to be signed make up about 65% of the programme's resource. Announcement of the other procurement procedures for award of contracts for projects approved for funding is pending. The conclusion of contracts depends on the progress of the procurement procedures, including appeals of evaluation and other objective factors. 24

25 Experience has shown that even with all contracts signed not all funds are absorbed. Savings are realized but they cannot be projected with high accuracy; on the other hand, delaying procedures for the award of construction works is not an option either because of the short time period remaining for implementation of the activities. It is for these reasons that the decision of the Council of Ministers enables MoEW to allow the beneficiaries to sign such contracts for activities under approved projects whose total value exceeds by 10% the available resources of the programme. The reimbursement of expenditures under such contracts is contingent on meeting all eligibility conditions. This decision does not deprive the beneficiaries of the programme of their obligation to secure the co-financing of the projects in accordance with the own contribution calculated in the costbenefit analysis. Taking into account the rules of the Structural and Cohesion Funds, it has to be reminded that all funds - European or national - are disbursed to the beneficiaries after the expenditures are made and their legality is verified. In that light, the approved measure aims to create an opportunity for maximum and full absorption of the financial assistance from the European Regional Development Fund and the Cohesion Fund of the EU allocated to the priority axes of OPE. Capacity strengthening of IB and MA through trainings Experts from the CPE Directorate were involved in the following specialized trainings with a view to enhancing the administrative capacity of MA of OPE: TOPIC Irregularities management Amendments to the Public Procurement Law effective 2012 Procurement practices of the National Audit Office, the Public Procurement Agency and the Commission for Protection of Competition Communication skills - advanced course (in English) Meeting of the European Network of Environmental Authorities (ENEA) Development of risk as an instrument Database with MS Access (beginners) Data exchange between MS EXCEL and MS WORD European public procurement, public-private partnerships (PPP) and concessions Functions in MS EXCEL State protocol and ceremonial Bulgaria's participation in the decision-making process of EU institutions and breach of the obligation to apply EU law Data exchange between MS EXCEL and MS WORD "Project management cycle: technical manual " Presentation skills. MS POWER POINT Practical implementation of the Public Procurement Law and avoiding common irregularities Corruption risk prevention Practical implementation of the Public Procurement Law and avoiding common 25

26 irregularities Indicators and implementation measures Waste management. European standards and practices Conflict of interest - legal framework and practices Cost-benefit analyses financed from EU projects - advanced course Working with documents bearing electronic signature Implementation of the Civil Procedure Code (for law experts) English (for law experts) Presentation skills (in English) Strategic management in the state administration Award of procurement contracts - legality of contracting authority's actions during the procedure Spreadsheets with MS Excel (advanced) Judicial review in EU law Introduction to state administration English grammar (refresher course) New developments in the Information and Water sectors Financial instruments Building public image Latest amendments to the Spatial Development Act Decision-making: principles, procedure, practices State aid rules for national and European funding Practical skills for effective communication Infrastructure projects co-financed with EU funds - development, analysis and implementation evaluation Project pipeline management for programmes financed from the EU funds Risk management Data analysis with PIVOTTABLE in MS EXCEL Experts from EUFED were involved in the following specialized training aiming to strengthen the administrative capacity of OPE IB staff: TOPIC 2012 changes in social and health insurance and the Labour code Conversational English Upcoming amendments to PPL Consultant's role in investment project management - implementation of FIDIC White Book in Bulgaria. Cost-benefit analysis - beginners and advanced course EU funds management Project management with MS Project Training to work with information flow management system 26

27 Practical implementation of the Public Procurement Law and avoiding common irregularities Internal and external audit Data exchange between MS EXCEL and MS WORD 2012 Global Sustainable Finance Conference Cost-benefit analysis of investment projects. Structural funds, Cohesion Fund and pre-accession instruments Practical implementation of the Public Procurement Law and avoiding common irregularities Practical implementation of the Public Procurement Law and avoiding common irregularities Accounting of funds in the budget for projects financed from the operational programmes Waste management Organizing practical training on the Public Procurement Law (PPL) Spreadsheets with MS EXCEL (advanced) English grammar refresher course ITO Spreadsheets with MS EXCEL (advanced) Training course for operators of waste water treatment plants Functions in MS EXCEL EU funds management (Making You a European Funds Manager) Training for working with the modules *Procedures, Project Proposals/Registration, Evaluation, Contracts * of UMIS Public procurement for projects financed with EU funds Counteracting corruption in the management and control of EU funds Working with documents bearing electronic signature Preparing a budget of a project and a report Preliminary requirements and strategies for smart specialization Audit of public finance Introduction to state administration Prevention of irregularities and fraud in the absorption of resources from the structural funds Practical implementation of FIDIC Red Book "Conditions of Contracts for Construction " 2.4. CHANGES IN THE CONTEXT OF THE OPE IMPLEMENATION (IF RELEVANT) To ensure the implementation of important policies for cleaner air and prevention of floods and forest fires and with a view to optimizing the absorption of funds from Environment OP, , MoEW studied the possibility to finance additional measures for important priorities in the environmental sector. New measures and actions were proposed for financing from the Cohesion Fund (CF) and the European Regional Development Fund (ERDF) of the European Union (EU) through Environment OP, MoEW conducted a study on projects for measures to prevent the risk of and combat floods and forest fires and on the need to renovate the urban transport rolling stock in municipal centres with impaired ambient air quality on the particulate matter (PM10) indicator. The following groups of measures were ranked: Measures to enhance the forest fire response capacity; Measures to enhance the flood response capacity and measures for equipment for monitoring and protection of shipping waters; Measures to improve the ambient air quality, for example new rolling stock for the urban transport; Technical support for implementation of the environmental policy. 27

28 After discussion of the proposed measures with all stakeholders and the Monitoring Committee members, amendments to Environment OP were initiated. The Monitoring Committee (MC) of OPE approved the proposed amendments by a written decision-making procedure conducted between 27 September and 10 October (Later, on 14 February 2013, the European Commission issued a decision approving the amendments to the operational programme). At the same time, a procedure under Article 85(4) and (5) of the Environment Protection Act and Article 14(2) of the Regulations on the conditions and modalities governing the environmental assessment of plans and programmes, Article 37(4) of the Regulations on the conditions and modalities governing the compatibility assessment of plans, programmes and investment proposals with the object and purpose of protection of areas of conservation, was initiated. On the basis of the environmental screening conducted by the competent authority, Decision No. ЕО-9/2012 of 10 October 2012 was issued, in the meaning that environmental assessment of the amendments to OPE which are not likely to have significant environmental or health impacts need not be carried out SUBSTANTIAL MODIFICATIONS UNDER ARTICLE 57 OF REGULATION (EC) No. 1083/2006 (IF RELEVANT) Over the reporting period, there have been no substantial modifications under Article 57 of Regulation (EC) No. 1083/ COMPLEMENTARITY WITH OTHER INSTRUMENTS In 2012, there were changes to the demarcation of Environment OP with OP Regional Development, OP Transport and OP Rural Development with regard to new activities included in OPE. There were no changes to the demarcation with the other EUfunded operational programmes. Demarcation with the Rural Development Programme: Funding under priority axis 1 of OPE can receive either municipalities with agglomerations of over 2000 PE and/or municipalities included in Annex 7 of OPE. Activities for construction and improvement of water and waste water infrastructure in settlements of less than PE in rural regions, other than those listed in Annex 7, are to be financed under Measure Major services for the rural population and economy of the Rural Development Programme In 2012, the implementation of OPE in the Water sector is focused entirely on agglomerations of over PE, but preventive measures have been taken to adhere to the demarcation. (see Measures to avoid double funding in OPE.) OPE will finance forest fire fighting operations (such as purchase of helicopters and specialized equipment to be used in forest fire fighting actions, all-terrain fire-fighting vehicles, personal protective equipment, etc.) having as beneficiary Directorate General Fire Safety and Protection of the Population of the Ministry of Interior. Forest fire preventive actions, such as purchase of equipment for fire fighting depots, construction and improvement of helicopter landing areas, implemented by municipalities, private forest owners, state forestry services and national parks are eligible under Measure 226 Restoring forestry potential and introducing preventive actions of Rural Development Programme OPE will co-finance forest fire fighting measures for natural parks, nature parks and reserves. Thus synergy and complementarity of the two programmes will be achieved. 28

29 Demarcation with OP Regional Development: The financing of water supply and sewage activities for settlements of over 2000 PE falls under the responsibility of the MoEW and OPE. OP Regional Development only finances, as necessary, activities for construction, reconstruction and rehabilitation of water supply and sewage connections and facilities linking major networks to single sites of the economic and social infrastructure eligible for financing under OP Regional Development. OP Regional Development will finance, within priority axis 1 Sustainable and integrated urban development", actions and infrastructure for risk prevention, in particular flood prevention, as well as for landslide fighting, such as building and strengthening flood and landslide preventive infrastructure (for example, dikes, barrages and other supportive facilities); machinery for maintenance of flood defence lines; machinery for protection of dikes and water courses from harmful vegetation; small infrastructure measures to combat coastal erosion, building small water retention reservoirs, dams, etc.; building and implementing hydraulic structures to reduce or eliminate flood risks and consequences; rehabilitation and construction of drainage facilities and infrastructure. At September 2012, the funds from RDOP for fire prevention and fighting are contracted and so, opening of new schemes of similar scope is not envisaged. Priority axis 1 of RDOP seeks to improve the competitiveness and attractiveness of cities, ensuring adequate quality of life and basic level services, taking into account the preservation of their environmental potential. The specific objective of Operation 1.4 is to promote accessibility and cohesion through efficient and sustainable urban transport systems in large urban agglomeration areas, including by introducing environmentally friendly urban transport vehicles. The allocations from RDOP for building sustainable urban transport systems are contracted and publication of new schemes of a similar scope is not envisaged. Using the released financial resource to finance the purchase of additional rolling stock beyond the one already envisaged in the approved project proposals is not planned either. The project proposals have been prepared and approved on the basis of feasibility studies which analyse the urban transport modernization and improvement needs of the specific beneficiaries, including the need to purchase new vehicles. OP Regional Development provides grants for limitint and preventing fire risks and damages in urban agglomeration areas. The funds are channelled entirely for support of fire fighting in the urban environment and will be spent to purchase specialized equipment and vehicles for operations in urban environment, high buildings, cases of industrial and chemical accidents, etc. The equipment described will solve at least some of the problems by securing the necessary technical resource for a couple of years and ensuring adequate response by the regional fire safety and protection of the population service. In support of the demarcation of the interventions under the two operational programmes, the rationale of Operation 1.4 of RDOP "Improvement of the physical environment and risk prevention reads that in the larger agglomeration areas the poor fabric of both residential and industrial/commercial buildings and infrastructure together with inadequate fire fighting equipment and vehicles for urban situations and facilities such as water hydrants in poor repair means that in many areas the risk of extensive fire damage is particularly high, resulting not just in damage to life and property but also in increased risk and scale of environmental pollution. Specific risk prevention investments will therefore be supported with respect to certain urban areas where the fire risks and related problems of urban degeneration and environmental pollution are the most crucial. 29

30 OPE will finance the supply of machinery and equipment for forest fire protection of national parks, nature parks, reserves and managed reserves whereas the machinery and equipment financed from RDOP is intended exclusively for fire extinguishing and rescue actions in the 36 urban agglomeration areas under RDOP. Demarcation with OP Transport: Priority axis 3 "Improvement of intermodality for passengers and freight" of Operational Programme Transport (OPT) seeks to make travelling conditions easier and facilitate modal transfers of passengers and freight to more environmentally friendly transport modes. Operations include development of urban underground railway connecting key transport centres of national importance (central railway stations, airports, etc.) with other transport modes. OPT will finance the construction of the Tsarigradsko Shosse Blvd, - Druzhba Residential Complex - Sofia Airport/Mladost 1 - Business Park section of the Sofia underground, but funding for metro trains is not envisaged. The cost-benefit analysis of the project takes into account the need to purchase such equipment and proves the necessity and effectiveness of the investment. Measures for monitoring and protection of shipping waters are not eligible under OPT. Instruments ensuring the co-financing of OPE: The Bulgarian Fund for Local Authorities and Governments (FLAG) provides support to municipalities for the successful implementation of projects under the operational programmes, by making available funds for bridge financing of municipal costs for project proposals. The fund cooperates with the MAs of the programmes, the highest percentage of applications for loans coming from the beneficiaries of OP Regional Development and OPE. The financial instrument provides different levels of assistance to municipalities. The tendency for municipalities to use FLAG mainly to prepare projects for financing persists in Eight contracts worth BGN in total were concluded with municipalities that are beneficiaries under OPE, lending going slightly up on the previous year. The credited projects are only in the water sector, including 4 for technical assistance, 1 under the preparation and construction procedure and 3 for infrastructure projects. Municipality Project Contract Loan amount (BGN) Kavarna Municipality No С / Popovo Municipality Rudozem Municipality Development of the water and waste water infrastructure of Kavarna - construction of Main collector VI and adjacent sewage network Improving the WSS network of Popovo Technical assistance for integrated project "Inlet collectors to waste water treatment plant Rudozem in both directions along Chepinska river and No С / No С044/ and for own contribution and for own contribution for own contribution 30

31 Kaspichan Municipality Chirpan Municipality Parvomay Municipality Varshets Municipality Varna Municipality along Elhovska river and construction of internal sewage and water supply network of the settlements along the two rivers" Technical operations for integrated water solution for reconstruction and building of water supply and sewage infrastructure and waste water treatment plant of town of Kaspichan, Kaspichan Municipality, Shumen Region Preparation of investment project "Construction of waste water treatment plant, reconstruction and extension of the water supply and sewage network of Chirpan Improving the drinking and waste water infrastructure of Parvomay Implementation of investment project "Urban waste water treatment plant (WWTP)" in Varshets "BG161PO005/08/1.30/01/01 Technical assistance for preparation of investment projects under" No С143/ No.DIR С002/ No С132/ No С / No С082/ and for own contribution for own contribution MA of OPE maintains intensive contact with the Fund s staff and exchanges on a regular basis information about the contracts concluded under the operational programme and the loans extended to municipalities. Measures to avoid double funding in OPE: The management information system (UMIS) for management and monitoring of the EU structural instruments in Bulgaria is an essential element of the measures aiming to prevent double funding across operational programmes. UMIS has been developed in accordance with the requirements under the European Structural and Cohesion Fund regulations which provide for having in place reliable monitoring and financial reporting systems. The system has been built to meet the specific needs of Bulgaria in accordance with the number of operational programmes; it is with controlled access, the users being designated with special orders of the ministers in charge of European funds. With a view to making available complete information on EU-financed projects, an interface between the Integrated Administration and Control System supported by State Fund Agriculture and UMIS was developed in Thus, the projects for construction/rehabilitation of water supply and sewage infrastructure financed under Measure 321 Basic services for the economy and population in rural areas can be registered in UMIS and MA of OPE can make the necessary checks before financing such projects. In addition to the opportunities provided by UMIS, OPE has in place its own mechanism for avoiding double funding, laid down in the operational programme and in Article 26(1) of DCM 121/2007, which functions within the Committee for Selection and Coordination of Projects (CSCP). 31

32 The nominal composition of CSCP is designated with Order RD-OP-57/ , as amended with Orders No. No. RD-OP-12/ , RD-OP-59/ and RD-OP-66/ of the Minister of Environment and Water. The committee operates in three panels depending on the priority axis of the operational programme. It includes representatives of: MA of OPE, IB of OPE, the respective specialized directorates within MoEW and the Executive Environmental Agency, the managing authorities of the operational programmes, as well as of the Rural Development Programme and the Fisheries and Aquaculture Programme, the Ministry of Finance, and representatives of the executive agencies of the pre-accession instruments. Experts collect information and report to CSCP on the overlapping of OPE projects, which have passed the evaluation stage and have been proposed for funding, with other projects and financing sources. The Committee for Selection and Coordination of Projects operates on the basis of Internal Rules of Procedure approved with Order RD-OP-31/ of the Minister of Environment and Water. It checks each one of the projects proposed for financing in the report of the evaluation committee and the activities thereof for receiving finance from other EU funds and instruments. The objective of this check is to guarantee that the same activities are not funded from several sources. If overlapping is established in the financing of a project or individual activities thereof, the project is removed from the list of operations proposed for financing under OPE. In the direct award procedures, this check is conducted through a written procedure within the evaluation of the project proposals by the expert working group. In 2012, CSCP held 30 meetings in absentia, including: - 23 on priority axis 1 (18 meetings on procedure BG161PO005/10/1.11/02/16; 3 on procedure BG161PO005/11/1.12/02/25; 1 on procedure BG161PO005/12/1.20/02/29 and 1 on procedure BG161PO005/11/1.3/02/28); - 4 on priority axis 2 (1 on procedure BG161PO005/10/2.10/06/21, 1 on procedure BG161PO005/12/2.20/01/31, 1 on procedure BG161PO005/12/2.10/08/30 and 1 on procedure BG161PO005/10/2.10/07/22); - 3 on priority axis 3 (1 on procedure BG161PO005/11/3/3.2/05/26, 1 on procedure BG161PO005/11/3/3.2/06/27 and 1 on procedure BG161PO005/12/3/3.2/07/32); In 2012, only meetings in absentia of CSCP were initiated because only direct award procedures for grants were announced. Competitive procedures were not announced. Additional information was requested at the meeting from the candidates and the committee members and the cases of suspected overlapping of activities were clarified. On the basis of the information provided as requested, the suspicions were clarified and grant contracts were concluded. Furthermore, experts from MA of OPE sit as members on the monitoring committees of the other OPs, thereby providing further guarantees for avoidance of double funding MONITORING ARRANGEMENTS MONITORING COMMITTEE The Monitoring Committee of the OPE was set up pursuant to Article 63 of Regulation (EC) 1083/2006 and in accordance with the partnership principle. 32

33 The members of MC were determined with Order No. RD-OP-60/ of the Minister of Environment and Water in accordance with DCM No. 182/ on establishment of the Monitoring Committees of the National Strategic Reference Framework and the Operational Programmes co-financed by the EU Structural Funds and Cohesion Fund (last amended, SG, No. 54/15 July 2011). MC of OPE ensures efficient and quality implementation of the programme by examining and approving the criteria for selection of projects for funding, examining and approving the annual and final reports on implementation of the programme and other strategic programming documents, and by monitoring the progress on programme s implementation In 2012, MC of OPE held two in-person meetings and one written procedure. The twelfth meeting of OPE MC was held on 1 June 2012 in Stara Zagora. The committee members discussed and approved the 2011 Annual Progress Report of OPE. The report was published early in OPE's website with a view to giving it maximum publicity and getting the opinion of all stakeholders prior to its approval by the Monitoring Committee. The physical progress of the programme was also presented. With a view to addressing the delay in the implementation of projects, the intention of MA to contract projects over the budget was presented. Thus expenditures will be generated in good time and the absorption of EU funds will be ensured. An amendment to the operational programme was approved, whereby the Enterprise for Management of Environmental Protection Activities (EMEPA) was added as a specific beneficiary under OPE and the criteria for award of grants for closure of municipal landfills that do not satisfy the legislative requirements were decided. According to the procedure, which was announced in August, municipalities will have the opportunity to get 100% grant for technical and bio-reclamation. One of the presentations was devoted to the programming process for the period The main priorities for the next programming period are focused on the water and waste sectors, biodiversity, resource efficiency and climate change. The thirteenth meeting of the Monitoring Committee (MC) of Operational Programme Environment was held on 28 November 2012 in Sofia. The 2013 Indicative Annual Work Programme was voted and approved by the members of the Monitoring Committee. The programme envisages announcement of two procedures in the first months of 2013 year, which will be focused on the provision of technical assistance in the Water sector for agglomerations of between 2000 and PE and on the establishment of regional waste management systems. Amendments to the Strategic Plan for Technical Assistance from OPE were presented and approved. They include adding measures to enhance the capacity of the institutions responsible for the implementation of the environmental policy, modification of the indicative plan for absorption of funds under priority axis 4. The criteria for evaluation of project proposals, developed in relation to the additional measures to be funded by the OPE, were voted and approved by MC. The work on the interim evaluation of OPE was presented at the meeting. A representative of the contractors acquainted MC with the approach applied in the evaluation of the programme. They are expected to provide soon a summary of the interim evaluation report. 33

34 A written decision-making procedure was initiated on 27 September 2012 with a letter of the Chairperson of the Monitoring Committee, on the grounds of Article 7(1) of MC's Internal Rules of Procedure. The following documents were delivered to the MC members for approval: Draft amendments to Operational Programme Environment Draft rationale of the amendments to Operational Programme Environment Within the time frame for submission of opinions, 26 positive and 0 negative opinions were submitted by total 57 members, including 49 voting members representing more than half of the voting members. According to MC's Internal Rules of Procedure, if more than half of the voting members have submitted positive opinions, the decision is carried. Furthermore, a procedure under Article 85(4) and (5) of the Environment Protection Act, Article 14(2) of the Regulations on the conditions and modalities governing the environmental assessment of plans and programmes and Article 37(4) of the Regulations on the conditions and modalities governing the compatibility assessment of plans, programmes and investment proposals with the object and purpose of protection of areas of conservation, was initiated. On the basis of the environmental screening conducted by the competent authority, Decision No. ЕО-9/2012 of 10 October 2012 was issued, in the meaning that an environmental assessment of the amendments to OPE which are not likely to have significant environmental or health impacts need not be carried out. Through the written procedure, MC of Operational Programme Environment approved the proposed decisions. Pursuant to Article 33 "Revision of Operational Programmes" of Council Regulation (EC) No. 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No. 1260/1999, the proposal was submitted to the European Commission for review and approval. On 14 February 2013, Commissioner Hahn signed the decision whereby the European Commission approved the amendments to Operational Programme Environment The expanded scope of the programme will make possible the implementation of additional environmental projects worth more than 600 MBGN and will contribute to optimization of the programme's funds. INFORMATION SYSTEM FOR MANAGEMENT AND CONTROL OF THE RESOURCES FROM THE EU STRUCTURAL AND COHESION FUNDS A centralised information system (UMIS) for management and control of funds from the EU SCF operates in Bulgaria and serves all administrative structures involved in the management, monitoring and control processes. The information system is fully implemented as an Internet-based application and has a flexible management tool controlling the access of the individual users in accordance with their administrative rights and obligations. To that end, experts from the IB and MA of OPE and the Internal Audit Directorate (IA), designated with an order of the Minister of Environment and Water, have access rights to the respective modules of the UMIS. At the end of 2011, the procedure manual of OPE was amended to provide an option for e- application and e-reporting via UMIS. Test-run submission, evaluation and reporting of a project proposal in UMIS were carried out in

35 In 2012, the Information and Management Systems for EU Funds Directorate of the Council of Ministers organized training on e-reporting of projects in UMIS. Four experts from MA and IB of OPE took part in the training. The modification of the value of the approved financing for a project proposal and the change of the sources of financing was made possible at the end of From October 2010, part of the information in UMIS is publicly available; data on the contracts concluded under the seven operational programmes are disclosed. Financial data, data on the priority axes of the programmes and data on the individual projects are open to the public. Information on OP Environment is completed and uploaded on a regular basis by the responsible persons. UMIS is becoming more functional and develops as an instrument in support of programme's operation NATIONAL PERFORMANCE RESERVE (WHERE APPLICABLE AND ONLY FOR THE ANNUAL IMPLEMENTATION REPORT SUBMITTED FOR 2010) Not applicable. 35

36 3. IMPLEMENTATION BY PRIORITY 3.1. PRIORITY AXIS 1 IMPROVEMENT AND DEVELOPMENT OF WATER AND WASTEWATER INFRASTRUCTURE AND IMPROVEMENT OF AMBIENT AIR QUALITY ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS Information on the physical and financial progress of the priority Indicator Total Indicator 1: Population connected to WWTP Indicator 2: (core indicator) Additional population to be connected to WSS network or to benefit from reconstructed/reha bilitated WSS network Indicator 3: New and rehabilitated WWTP Achievement Target (1) Results Indicators 0.10% (6) 2.40% % Baseline 40.5 % (3) 40.5 % (3) 40.5 % (3) 40.5 % (3) Achievement Target (1) Baseline Achievement % (5) 6.52% (6) (5) % (5) 1,727 % % (2) Target (1) Baseline 1 (4) 1 (4) 6 (4) 11 (4) (1) In the OPE, the targets for all indicators are defined for the years 2010 and (2) End of period value aims to measure only the achievements completed with financing from Environment OP (3) NSI Statistical Reference Book "Environment" the data are for Afterwards the NSI published data for 2007 (42.2 %), 2008 (43.8%), 2009 (45.2%), 2010 (47.6%) (4) The baseline value refers to WWTPs completed with financial assistance from ISPA. (5) The baseline value refers to projects commissioned by With the projects commissioned in 2011 Q1 the connected population totals PE. (6) The data refer only to OPE's contribution to the total value of the indicator. The value of 6.25% represents the achievement on the indicator at national level

37 *Achievements, other than those presented in the table above, completed by implementation of infrastructure projects: km in constructed and km in rehabilitated sewage network km in constructed collectors and 0.58 km in rehabilitated collectors 1. Water supply network km in constructed water supply network km in rehabilitated water supply network 2. Waste water treatment plants 3 3. Pumping stations 4 4. Pushers 4 5. Collectors 12 QUALITATIVE ANALYSIS At the end of 2012, 125 contracts and 1 grant order are in implementation in the Water sector of OP Environment , including: 17 contracts (55 at the end of 2011) for technical assistance for the preparation of projects, 19 contracts (23 at the end of 2011) for construction of WSS infrastructure, 63 contracts (2 at the end of 2011) are under procedure BG161PO005/10/1.11/02/16 and 26 contracts (16 at the end of 2011) are under procedure BG161PO005/10/1.11/03/19, 5 orders (1 at the end of 2011) of the minister of environment and water for the projects of River basin Directorates. At the end of 2012 in the Water sector are completed 95 grant contracts (66 until 2011) worth more than 172 MBGN in total. Savings exceed 42.6 MBGN making up almost 33% of the value of completed contracts. The completed contracts for technical assistance are 89 (63 until 2011) worth more than 87 MBGN in total and those for construction are 6 (3 until 2011) worth more than 85 MBGN in total (under procedure BG161PO005/08/1.10/01/02 of the municipalities Primorsko, Valchi Dol, Burgas - Dolno Ezerovo, Pernik, Kavarna and Glavinitsa). The upward trend in the number of completed technical assistance projects and projects from the first announced construction procedure registered in 2011 persists in Savings increase from a little more than 30% of completed contracts at the end of 2011 to almost 33% at the end of Projects worth 2.49 billion BGN were contracted in the Water sector within the past year alone. The practice of preliminary consultations provided by experts and assistants from CPED to potential beneficiaries of Water sector projects, introduced by MA on July 1, 2010 in order to ensure the good quality of the projects approved for financing, continues in Total 125 preliminary consultations were held in 2012, including 101 for project proposals under procedure No. BG161PO005/11/1.12/02/25 for investments in agglomerations of to 37

38 PE (16 consultations with Pleven Municipality). 24 preliminary consultations were held under combined procedure BG161PO005/ 10/1.11/03/19 for preparation and construction in agglomerations of more than PE. The purpose of the meetings of MoEW experts with representatives of the beneficiaries is to facilitate preparation and improve the quality of the submitted project proposals. This leads to faster evaluation and better implementation. A total of 84 project proposals were registered by the deadline for submission of application documents under procedure No. BG161PO005/10/1.11/02/16 (20 February 2012). 63 (61 in 2012) contracts worth a little above 2.28 billion are concluded, 7 grant contracts are approved, 10 are in evaluation procedure and 4 are rejected. 27 project proposals were received by the deadline for submission of documents under procedure No. BG161PO005/10/1.11/03/19 (30 June 2011). 26 (10 in 2012) contracts worth more than 918 MBGN in total are signed. Procedure No. BG161PO005/11/1.12/02/25 Improvement and development of water and waste water infrastructure in agglomerations of to PE with 300 MBGN in grant was announced in November The eligible beneficiaries include 147 municipalities with 236 eligible agglomerations on their territory. By the deadline for submission of preinvestment studies (PIS) (31 January 2012), 145 municipalities submitted a total of 197 PIS to the Managing Authority of OPE. This called for a preliminary review which established that most of the PIS contain a lot of omissions and inaccuracies. In view of that, prioritization was made on the following criteria: a need to construct WWTP, number of PE connected to WWTP and project pipeline. The process was completed on 15 April 2012 with 72 prioritized projects. Consultations were held with all potential beneficiaries. The 16 best prepared submitted projects documents for evaluation. Four of the projects were approved in the beginning of 2013 but due to shortage of free financial resource grant contracts were not signed. Procedure No. BG161PO005/11/1.3/02/28 "Strategic planning and capacity strengthening of the structures engaged in the water sector reform to ensure sustainable water infrastructure management, with 12 MBGN in grant and specific beneficiary - the Ministry of Regional Development and Public Works, was announced on 18 January Because of the need to expand the scope, a grant contract worth 16.8 MBGN was signed in June The specific objective of the procedure is to support the successful water sector reform and the sustainable management of the water infrastructure in the country. Procedure No. BG161PO005/12/1.20/02/29 "Development of flood risk management plans" with a budget of a little above 20 MBGN was announced in April Specific beneficiaries are the basin directorates of Varna, Blagoevgrad, Pleven and Plovdiv. Orders for grant aid were issued by the end of September Procedure No. BG161PO005/12/1.40/01/34 "Measures to enhance the capacity for flood prevention and fighting and for monitoring and protection of shipping waters with MBGN in grant was announced at the end of The procedure has two components: Component 1 has a budget of more than 97.4 MBGN and envisages implementation of activities to prevent floods and increase the flood response capacity: provision of specialized machinery and equipment - pumping machinery and equipment with high pump capacity, machinery and equipment for water search and rescue, for flood prevention and temporary accommodation in the case of floods. Component 2 has a budget of 8 MBGN and envisages activities for shipping waters protection: provision of specialized machinery and equipment which will contribute to environmental protection, including for localization and removal of ship-generated pollution, 38

39 as well as optimization of the control activities for elimination of alluvial deposits of the Danube river. Twenty-three investment projects were commissioned from the start of the program until the end of 2012 under 13 projects in the following municipalities: Primorsko, Sopot, Beloslav, Blagoevgrad, Kazanlak, Hissar, Troyan, Burgas (Dolno Ezerovo neighbourhood), Gorna Bania neighbourhood (Sofia Municipality), Kavarna, Pernik, Glavinitsa, and Popovo. Construction works under the following projects were started in 2012: (information to be added) SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM See also 2.3 Significant problems encountered and measures taken to overcome them. 39

40 3.2. PRIORITY AXIS 2 IMPROVEMENT AND DEVELOPMENT OF WASTE TREATMENT INFRASTRUCTURE ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS Information on the physical and financial progress of the priority Indicator Total Indicator 1: Population served by regional waste management systems Indicator 2: Established and completed integrated waste management systems (core indicator) Result Indicators Achievement Target (1) Baseline Output Indicators Achievement Target (1) Baseline 5 (2) 5 (2) 5 (2) 5 (2) ) In the OPE, target values of all indicators are defined for the years 2010 and (2) The baseline value refers to integrated waste management systems completed with the financial assistance from ISPA Programme. N/A information is not available * During the reference period there was no physical advance achieved on the OPE indicators. Therefore, there is no relevant information to be supplied under this item. QUALITATIVE ANALYSIS At 31 December 2012, MBGN are contracted under priority axis 2 (94.54 % of the axis budget). At the same date, payments on waste sector projects total MBGN (14.52% of the axis budget). Twenty-three projects totalling 630 MBGN in value are in progress, including 5 for technical assistance and 18 for establishment of regional waste management systems in the regions of Aksakovo, Botevgrad, Burgas, Vidin, Gabrovo, Lukovit, Nikopol, Pernik, Pleven, Razlog, Samokov, Sofia Municipality - phase I, Stara Zagora, Yambol, Malko Tarnovo, Dobrich, Borovo, and Panagyurishte. Two projects for 40

41 establishment of regional waste management systems in the regions of Veliko Tarnovo and Haskovo are in evaluation at 31 December 2012 (in implementation from 14 January 2013). At its meeting on 1 June 2012, MC of OPE approved the addition of the Enterprise for Management of Environmental Protection Activities (EMEPA) 2 as a beneficiary under axis 1, 3 and 3 of OPE. Procedure BG161PO005/12/2.20/01/31 Implementation of activities for the closure and reclamation of municipal landfills which do not meet the regulatory requirements was announced on 10 August After the submission of a project proposal and an evaluation, a contract worth BGN was signed on 09 January The purpose of the project is to make funds available to EMEPA for discharge of the functions for implementation of environmental projects for closure of municipal landfills that do not meet the regulatory requirements assigned to the enterprise by DCM No. 209/2009. The project is aimed at achieving compliance with the requirements of Directive 1999/31/EC and of the national waste management legislation. The following procedures were announced in 2012: - BG161PO005/12/2.10/08/30 Establishment of Haskovo Regional Waste Management System 04 July BG161PO005/12/2.20/01/31 Implementation of activities for the closure and reclamation of municipal landfills which do not meet the regulatory requirements 10 August 2012 Information on the sites within the investment projects implemented under priority axis 2: Municipalities covered by the regional systems: 96. Settlements covered by the regional systems: Population served: 4.03 million people Total landfill capacity: 18.4 million tons Total capacity of the cells constructed under OPE: 6.2 million tons Separation installations: 11 with a capacity of 294 thousand tons per year Composting plants: 17 with a capacity of 180 thousand tons per year Reloading stations: 9 Recycling centres: 10 Facilities for recycling of bulky waste and construction and demolition waste: 9 Territory covered by the regional systems: 45 thousand sq. km (almost 41% of the national territory) The first investment project in the Waste sector was commissioned in 2012, 8 months before the appointed time the Botevgrad Regional Waste Management System. On 19 December 2012 the European Commission approved the second phase of the project "Establishment of an integrated system of municipal waste treatment facilities of Sofia Municipality" for the construction of the waste MBT (mechanical and biological treatment) facility as a long-term solution for the management of Sofia's municipal waste. The value of this project phase is about 200 MBGN. The annex to the grant contract was signed on 6 March 2013 For more information on the project: see 5 ERDF/COHESION FUND PROGRAMMES: MAJOR PROJECTS SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM These are complex projects requiring multiple procedures under the environmental legislation and so they often meet with public misperception. Furthermore, municipalities should 2 Article 60 of the Environment Protection Act provides that EMEPA is a state-owned enterprise in the meaning of Article 62(3) of the Commerce Act. The enterprise is a legal entity which is not a commercial company and does not form or distribute profit. 41

42 implement them in partnership which requires understanding and close cooperation within the regional waste management associations and this is often a delaying factor. Another delaying factor is the fact that the environmental impact assessment of many of the projects is carried out long before the project is started, without detailing the best available techniques. As construction works cannot start without a positive EIA decision with best available techniques, this document is critical for the implementation of the projects. See also 2.3 Significant problems encountered and measures taken to overcome them. 42

43 3.3. PRIORITY AXIS 3 PRESERVATION AND RESTORATION OF BIODIVERSITY IMPLEMENTATION OF TARGETS AND ANALYSIS OF THE PROGRESS Information on the physical and financial progress of the priority Indicator Total Indicator 1: Percentage of species and habitats under Directive 92/43/EEC with conservation status assessments Indicator 2: Number of NATURA 2000 protected zones and protected areas mapped Indicator 3: Number of elaborated management plans for protected areas and protected zones of NATURA 2000 Indicator 4: Number of habitats and species for which protection activities are implemented (2) Result Indicators Achievement Target (1) Baseline Output Indicators Achievement Target (1) Baseline Achievement Target (1) Baseline Achievement Target N/A N/A N/A N/A N/A 230 Baseline N/A N/A N/A N/A N/A 43

44 (1) In the OPE, target values of all indicators are defined for the years 2010 and 2013 (2) The indicator was introduced in 2012 on the basis of an analysis QUALITATIVE ANALYSIS Seventy-seven projects worth BGN in total or % of the priority axis budget are in implementation at the end of Payments amount to 43.3 MBGN, making up almost % of the budget of priority axis 3. Seventy-eight contracts worth more than MBGN or almost 170 % of the priority axis budget are in implementation at March Payments amount to MBGN, making up % of the budget of priority axis 3. Six projects are successfully completed, with almost 3 MBGN in absorbed grant. Achievement on the procedures: Procedure No. BG161PO005/08/3.0/01/05 "Preservation and restoration of the biodiversity in Bulgaria - 12 projects worth 10.1 MBGN in total are in implementation. Procedure No. BG161PO005/09/3.1/01/08 "Development of NATURA 2000 network" - 3 projects worth 27.3 MBGN are in progress, with National Nature Protection Service (NNPS) of MoEW as beneficiary. Procedure BG161PO005/09/3.2/02/10 "Development of Bulgarka Nature Park Management Plan" - a project worth 2 MBGN is in progress. Procedure BG161PO005/09/3.2/03/11 "Development of Belasitsa Nature Park Management Plan" - a project worth 1.2 MBGN is in progress. Procedure BG161PO005/09/3.2/04/12 "Update of the Central Balkan National Park Management Plan" - a project worth 2.3 MBGN is in progress. Procedure BG161PO005/10/3.0/2/20 "Activities for preservation and restoration of the biodiversity in Bulgaria - 23 projects worth 20.8 MBGN are in progress. Procedure BG161PO005/11/3.1/02/23 "Development of management plans for special protection areas for birds not overlapping with special protection areas for habitats" - 5 projects worth 1.4 MBGN are in progress. Procedure BG161PO005/11/3.0/03/24 Terrain Studies of Species Distribution/ Evaluation of Species and Habitat Status for the Territory of the Whole Country - Phase I (EIA) - 1 project worth 9.8 MBGN is in progress. Procedure BG161PO005/11/3/3.2/05/26 "Implementation of activities for planning and management of parks and reserves" - 18 projects worth 114 MBGN are in progress. Procedure BG161PO005/11/3/3.2/06/27 "Implementation of activities for planning and management of nature parks" - 11 projects worth 45.8 MBGN are in progress. Procedure BG161PO005/12/3/3.2/07/32 "Transport and technical support for the implementation of activities in protected areas the exclusive title to which is vested in the State" - the implementation of a project worth 7.5 MBGN, with NNPS Directorate of MOEW as beneficiary, was launched in January

45 Procedure BG161PO005/12/3.0/04/33 Enhancing the capacity of the regional structures of Directorate General "Fire Safety and Protection of the Population" of the Ministry of Interior for response to forest fires in national parks, nature parks, reserves and managed reserves - the implementation of project "Technical support to the operational structures of DGFSPP-MoI for control and suppression of forest fires" worth 97.6 MBGN was launched in February Beneficiary is Directorate General "Fire Safety and Protection of the Population" within the Ministry of Interior SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM With a view to avoiding problems with the reporting and verification of expenditures incurred for project management and implementation remunerations under priority axis 3 of OPE, following the approval of amendments to DCM 55/2007 which regulate facilitated assignment of tasks to individuals whose CVs have been evaluated, a template of a Management Team Designation Order for beneficiaries who are administrative structures was published in the OPE website. To facilitate the beneficiaries, instructions and a list of documents required for the reporting of expenditure relating to the work of volunteers were published. With a view to optimizing the implementation processes and introducing clear rules for completion and consolidation of the progress reports and requests for payments submitted by beneficiaries, the Managing Authority and the Intermediate Body of the operational programme made modifications to the procedures. The updated versions of the templates of progress reports, as well as Instructions on the completion of regular implementation reports for projects financed from OPE took effect from 1 July In consequence of the signed grant contracts (GC)/orders for which ongoing audit is envisaged and on the basis of the experience gained in the management of projects financed from Operational Programme Environment , updated Instructions on the completion and compiling of requests for payment and Instructions relating to the process of verification and control of expenditures and on-site checks by beneficiaries, as well as Instructions on the accounting systems of beneficiaries were made available. DCM No. 179 took effect on 17 August 2010, aiming to cut down the time for examination of submitted requests for payment. It regulates that "The Managing Authority/the Intermediate Body shall verify the expenditures, examining and giving opinion on all reports and documents leading to payment, within 40 business days from receipt thereof, notifying the beneficiary in writing accordingly. The previous experience in the management of projects under priority axis 3 shows that a 10% limit on administrative expenditures for small projects is restrictive, all the more that it is regulated only for infrastructure projects. Therefore, in recently announced procedures this limit was set at 20% of total eligible costs depending on the project size and will be applied also to upcoming competitive selection procedures under priority axis 3. Detection and prevention of double funding is still a big problem as regards the projects under priority axis 3 because funds for preservation of biodiversity are allocated under many programmes by different donors, often other than the European structural and pre-accession instruments. As mentioned earlier, with a view to detecting and preventing double funding MA organises procedures with the Committee for Selection and Coordination of Projects and takes part on a regular basis in other mechanisms for detection and prevention of double financing. Representatives of MA/IB are involved in horizontal mechanisms that have inter alia this goal. For example, they sit on working and expert groups like the Expert Group for Transparency 45

46 within State Fund Agriculture Paying Agency. MA coordinates projects approved under other grant instruments like the Norwegian Programme. See also 2.3 Significant problems encountered and measures taken to overcome them PRIORITY AXIS 4 TECHNICAL ASSISTANCE ACHIEVMENT OF TARGETS AND ANALYSIS OF THE PROGRESS Information about the physical and financial progress of the priority Indicators for this priority axis are not defined in the OPE. Indicators are project-specific and depend on the activities included in the project. Therefore, there is no relevant information to be supplied. QUALITATIVE ANALYSIS The objective of Priority Axis 4 Technical Assistance is to ensure the effective management of the OP and to strengthen the capacity of the structures involved in programme s implementation in order to improve the absorption of funds from the programme. It supports the management, implementation, monitoring, control and evaluation of the OP and the implementation of publicity and visibility measures, as well as studies and exchange of experience. This priority axis supports the building and enhancement of specific capacity for preparation, implementation, management and monitoring of CF-funded projects in both the management structures and the beneficiaries of the OP. It supports also capacity strengthening measures for the institutions responsible for the implementation of the environmental policy. Allocations to Priority Axis 4 account for approximately 2.5% of programme s total budget. New Internal rules for direct award of grants under priority axis 4 Technical Assistance of OPE (including amendments thereto) were approved with Order No. RD-OP-42/ of the Minister of Environment and Water. They regulate the changes to the functions of the departments in CPED in respect of their activities relating to priority axis 4 - preparation of the forms for direct award of grants, evaluation of project proposals, management of the projects approved for financing, verification of payment requests, and making payments on the projects approved for financing under priority axis 4 "Technical Assistance" of OPE. By December, 31 the projects contracted under the priority axis are 73, worth BGN in total. Of these, 24 are in implementation, 49 are completed and 6 were cancelled. The following project proposals corresponding to the activities in the Strategic Plan for Technical Assistance were developed and approved in 2012: Securing funds to pay the remunerations of external valuators involved in expert working groups and committees for evaluation of projects proposals under Operational Programme Environment (BGN ) Securing funds to pay the remunerations of the administrative staff in the central bodies of the Executive involved in the evaluation of project proposals under priority axes 1, 2 and 3 of Operational Programme Environment (BGN ) A new project to finance translation and interpreting services, including simultaneous and consecutive interpreting, for the needs of Operational Programme Environment was approved (BGN ). 46

47 A new project to finance the organization of the meetings of the Monitoring Committee of Operational Programme Environment was approved (BGN ) A project to finance interim and ongoing evaluations of Operational Programme Environment was approved with a view to implementing successfully the OPE Evaluation Plan (BGN ) A project for implementation of studies, analyses, strategies for the programming period was developed and approved with a view to the need to implement the activities for development of the operational programme for environment for the period ensuing from the requirements of the European and the national legislation (BGN ) A project for implementation of initiatives to promote OPE was approved with a view to implementing the requirements of the European Commission for information publicity and transparency (BGN ) A project for addressing the need of technical support for the management of OPE was developed and approved (BGN ) The implementation of the following projects was completed in 2012: A project to make resource available to CPED of MoEW for secondments for planned and ad hoc on-site checks and for on-site checks for administration or irregularities under OPE (BGN ) A project for building an information system for management of information flows for the needs of IB of OPE including a real-time reports and references option (BGN ) A project for transposing in the national legislation the requirements of Directive 2008/98/EC on waste and repealing certain Directives (BGN ) A project to enhance the capacity of the Internal Audit Directorate of MoEW through trainings in the country and abroad (BGN ) A project for organization of the meetings of the Monitoring Committee of Operational Programme Environment for 2009 and 2010 (BGN ) A project for implementation of awareness raising activities for the target groups of Operational Programme Environment (BGN ) A project for implementation of the activities on the Communication Plan of OP Environment (BGN ) A project for workshops, courses and working meetings to enhance the administrative capacity of CPED (BGN ) A project to secure the pay in accordance with Article 17(4) and (5) of DCM No. 249/17 October 2007 to experts in the Preventive Activities, Waste Management and Water Management directorates of MoEW engaged in the evaluation of project proposals under priority axis 2 of OPE (BGN ) A project to secure the pay in accordance with Article 17(4) and (5) of DCM No. 249/17 October 2007 to experts in the Preventive Activities, Waste Management and Water Management directorates of MoEW engaged in the evaluation of project proposals under priority axis 1 of OPE (BGN ) 47

48 A project for selection of independent valuators of projects financed from Operational Programme Environment in support of successful contracting (BGN ) A project to secure the pay in accordance with Article 17(4) and (5) of DCM No. 249/17 October 2007 to experts in the National Environment Protection Service Directorate of MoEW engaged in the evaluation of project proposals under priority axis 3 of OPE (BGN ) A project to finance translation and interpreting activities, including simultaneous and consecutive interpreting, for the needs of Operational Programme Environment (BGN ) In implementation are also the following projects approved in the period : A project for audits for the needs of Operational Programme Environment (BGN ) A project for involvement of experts in workshops, courses and working meetings to enhance the administrative capacity of the EU Environment Funds Directorate (BGN ) A project for evaluation of the efficiency of completed procedures for selection of project proposals under priority axes 1, 2 and 3 of Operational Programme Environment (BGN ) A project for undertaking analysis of the priority of project proposals under priority axes 1 and 2 of OPE and for purchase of Microsoft Project and Autocad software with a view to making use of the analysis results (BGN ) A project to make resources available to the EUEF Directorate of MoEW for secondments for on-site checks under OPE (BGN ) A project for selection of a consultant to provide ex-ante and ex-post control of public procurement procedures announced and/or conducted by OPE beneficiaries (BGN ) A project for involvement of external experts from the list under Article 19 (2) 8 of PPL in the proposal evaluation committees within public procurement procedures (BGN ) A project for workshop training activities, courses, working meetings and discussions to enhance the administrative capacity of beneficiaries who are secondlevel spending units at MoEW for the preparation and implementation of OPE projects and projects under different sector policies related to the overall management of the operational programme (BGN ) A project to make resources available to the Internal Audit Directorate of MoEW for secondments for audits and on-site checks at the beneficiaries of projects financed from OPE OPE (BGN ) A project for selection of external experts to provide ex-ante control in accordance with Article 20a (2) 2 and Article 4 of PPL (BGN ) A project to secure the pay, including social security contributions under DCM No.67/2010 for the staff in CPED и EUFED and under DCM No.203/2010 for the position of Assistant for the Management of European Projects and Programmes, and for additional pay to the staff of CPED and EUFED (BGN ) 48

49 A project for the organization of information and publicity events and for production of publicity and information materials on Operational Programme Environment , as well as for the organization of the national campaign Green Bulgaria (BGN ) Securing the pay to members of working groups initiated by the Cohesion Policy for Environment Directorate in relation to the management and implementation of Operational Programme Environment (BGN ) A project to finance activities for ensuring the necessary support and publicity for the promotion of OPE (BGN ) A project to secure funds for technical assistance in the field of waste management (BGN ) A capacity building project for the units engaged in the management and implementation of the programme (BGN ) SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM See also 2.3 Significant problems encountered and measures taken to overcome them. 4. ESF PROGRAMMES: COHERENCE AND CONCENTRATION Not applicable. 5. ERDF/CF PROGRAMMES: MAJOR PROJECTS (IF APPLICABLE) 1.1. Vratsa Integrated Water Cycle Project The grant contract between MoEW and Vratsa Municipality was signed on 21 December The grant is in amount of BGN and the project is scheduled for completion in January The groundbreaking ceremony was held on 10 December 2012 Achievement by activity: 1. Activity 1 Project preparation completed. 2. Activity 2 Project management - A contract for technical assistance for PMU was signed on with the successful candidate Alliance Project-Consulting- Vratsa Ltd., comprising three companies: Sofia Consulting Group, June Project Ltd. and Waterengineering Ltd. Contractor's experts are involved as consultants - they issue expert opinions, take part in working meetings on the project. They have a permanent office in Vratsa with a full-time project leader and manager. They fulfil the approved training plan. 3. Activity 3 Project information and publicity - A contract with the successful candidate Consortium AIP Agency for Information and Publicity, comprising two companies: Mihaylov TV Ltd and Studio R Ltd., was signed on The contract is in implementation. On 08 May 2012, the contractor organized a kick-off 49

50 conference for public presentation of the project. The contractor: prepares publicity materials, project website and publications in accordance with the contract; organizes the groundbreaking ceremony for the project - 10 December A promo film was made for the project and broadcasts on the local cable TV. The contractor takes part in the organization of working meetings, maintains the project website, posts up-to-date information on the implementation of project activities. 4. Activity 4 - Financial audit - A contract with the successful candidate Global Audit Services Ltd. was signed on 29 August Work on the contract has started. 10 audits of the project were carried out, covering all documents until 31 December Activity 5 - Construction supervision and other services such as preparation of tender dossiers, FIDIC contracts, etc. - A contract for construction management and construction supervision of construction contracts under FIDIC was signed with Consulgal BG Partners Ltd. on 07 June The contract is in progress. 6. Activity 6 - Purchase of equipment: A contractor selection procedure was started on 08 January Activity 7 - Rehabilitation and reconstruction of water supply pipeline Research, design and exercise of field supervision of water supply main from Srechenska Bara Dam to Vratsa. A contract with the successful candidate RECCO Engineering Ltd. was signed on 30 August After suspension, the implementation was resumed. The prepared projects have been submitted to the Municipality. They are coordinated with the competent authorities. The detailed design has been coordinated pursuant to the Spatial Development Act (SDA) with: DGFSPP; NCPHA; REA, following opinions by DRA (District Road Administration) Montana and Vratsa; BTC AD, NEK EAD; CEZ Distribution - Vratsa and Montana; the WSS companies of Montana and Vratsa. Certified sketches of the land estates of location of the water bodies along the route of the existing asbestos-cement pipeline have been received from: the Municipal Land Services of Vratsa, Berkovitsa, Varshets, the District Office of Geodesy, Cartography and Cadastre of Montana and Vratsa. The applications for permits for passage through water bodies were filed with the Basin Directorate in Pleven on 12 December Letters requesting opinions on the detailed design were filed with MAF on 12 December By Decision No. 471/11 of the CoM of RB the project was declared a national project. Rehabilitation of existing steel water-supply main from Srechenska Bara Dam to Vratsa; replacement of stopcocks, air vents, etc., and replacement of asbestos-cement water-supply pipeline. Construction works have not started due to problems with the coordination of the detailed design with MAF and BD and the issuing of a construction permit by MRDPW. Documents for a public procurement procedure for award of the construction works are being prepared. 8. Activity 8 - Reconstruction of the water supply network For activities 9, 10 and 11: The procedure was re-announced on 25 June 2012 and a contractor was selected on 24 August Ponsstroyengineering AD. The contract was signed on 05 December The starting date of construction works is 17 December The builder has presented an Engineer's programme, there is a technical report. Construction works started on 06 February 2013 in Bistrets Neighbourhood. The time allocated for the implementation of the works in the schedule is 16 months; one year is set out for removal of defects. 9. Activity 9 - Extension of the sewage network See activity 8 50

51 10. Activity 10 - Reconstruction of the sewage network See activity 8 Activity 11 Reconstruction of WWTP: The contract for the implementation of this activity was signed on 11 September It is in progress. Timetable of activities Activities Start date Completion date 1. Project preparation activities for elaboration of July 2008 September 2015 documents for the project proposal tender dossiers, research, design, working meetings, etc. 2. Project management May 2011 September Project information and publicity July 2011 August Financial audit August 2011 September Construction supervision and other services such as April 2011 September 2015 preparation of tender dossiers, FIDIC contracts, etc. 6. Purchase of equipment June 2012 March Rehabilitation and reconstruction of water supply July 2012 September 2014 pipeline 8. Reconstruction of the water supply network August 2012 August Extension of the sewage network September 2011 August Extension of the sewage network Phase I September 2011 September Extension of the sewage network Phase II August 2012 August Reconstruction of the sewage network September 2011 August Reconstruction of the sewage network September 2011 September 2013 Phase I Reconstruction of the sewage network August 2012 August 2014 Phase II 11. Reconstruction of WWTP June 2011 June 2013 Financial parameters Project funding sources (BGN) Total value of the investment National cofinancing (state budget) Beneficiary cofinancing Vratsa Municipality Securing beneficiary s contribution from an external loan extended by EIB % 9.5% 18% 9.5% 9.5% 51

52 Financial implementation of the project: Advance payment to beneficiary BGN (20% of the grant) Interim payments to beneficiary BGN (0.16% of the grant) 2. Gabrovo Integrated Water Cycle Project The grant contract between MoEW and Gabrovo Municipality was signed on 23 February The amount of the grant is BGN and the project is scheduled for completion on The following activities are implemented within Gabrovo Integrated Water Cycle Project under Grant Contract No : Activity 1: Preparatory activities to secure the project implementation: Activity 1.1: Preparation of technical specifications for technical assistance for development of investment projects and tender documents pursuant to PPL completed before the signing of the GC. Activity 1.2: Preparation of tender dossier for public procurement procedure for reconstruction of DWTP completed. Activity 1.3: Consolidation of project documents - completed before the signing of the GC. Activity 1.4: External services - completed for the part of works awarded to date. New award procedure is pending in accordance with the project implementation needs. A rationale of the need to organize a new public procurement procedure for "Provision of consulting services - conducting feasibility study activities for water supply pipeline from Hristo Smirnenski Dam to Gabrovo Drinking Water Treatment Station has been prepared. Activity 1.5: Coordination of projects and permits - a number of coordination procedures were carried out over the reporting period in relation to the prepared detailed designs for the WSS network for phases 1, 2 and 3. New award procedures are pending in accordance with the progress of implementation and the project needs. Activity 2: Activities under the investment programme: reconstruction of DWTP, repair of 4 and construction of 1 pump station, rehabilitation and improvement of the water supply system, extension of the sewage system, rehabilitation of the sewage system, reconstruction of WWTP, production equipment for WWTP, grouped as follows: Activity 2.1: Reconstruction of DWTP - The contract for implementation of the activity was signed on 01 November It is in progress; a certificate for advance payment on the contract was issued. At February 2013, the payment is pending. The conceptual design for the upcoming reconstruction works is being prepared for approval by the Engineer and issuing of a compliance assessment report. Activity 2.2: Rehabilitation of water supply network and rehabilitation and extension of sewage network 1/3 - The contract for implementation of the activity was signed on 04 June It is in progress. The advance payment on the contract has been made. To date, CAW on sub-projects are in progress in accordance with constructor's work programme. The first interim progress billing is being prepared. Activity 2.3: Rehabilitation of the water supply/sewage network 2/3 - The contract for implementation of the activity was signed on 19 October It is in progress. The advance 52

53 payment on the contract has been made. To date, CAW on sub-projects are in progress, in accordance with constructor's work programme. The first interim progress billing is being prepared. Activity 2.4: Rehabilitation of the water supply/sewage network 3/3 - The contract for implementation of the activity was signed on 17 August It is in progress. The advance payment on the contract has been made. To date, CAW on sub-projects are in progress, in accordance with constructor's work programme. The first interim progress billing is being prepared. Activity 2.5: Field supervision of construction works for the linear portion - The contract with the contractor was signed on 10 March It is being implemented taking into account the start and real implementation of all construction contracts for the linear part - WSS networks. A field office was opened in Gabrovo for continuous filed supervision of the sites. Designers' prescriptions are entered on a regular basis in the order book of the construction sites. Activity 2.6: Reconstruction of WWTP - The contract for implementation of the activity was signed on 27 July It is in progress. The advance payment on the contract has been made. The conceptual design for the upcoming reconstruction works is being prepared and consolidated for approval by the Engineer and issuing of a compliance assessment report. Activity 3: Organization and management activities Activity 3.1: Support to PMU Activity 3.1.1: Technical assistance to Project Management Unit of Gabrovo Integrated Water Cycle Project - The Contracting Authority cancelled the procurement procedure on the grounds of Item 5 of Article 39(5) PPL. Following the appeal procedures, the competent authorities have enacted a decision in favour of the decision of the contracting authority. In that light, Gabrovo Municipality has submitted to IB of OPE a proposal for cancellation of the respective project activity, presenting arguments that it is no longer necessary and so it would be inappropriate to spend the project resource. Activity 3.1.2: Project Management Unit - Modification of the Concept for Implementation and Management of the Project to the effect that it is no longer necessary to engage experts from the administration for the PMU and to increase the staff of PMU by 2 permanent positions for the purposes of efficient project implementation was approved with Additional Agreement 5 to GC. Supply of equipment for PMU: The contract with the contractor was signed on 19 May It was completed with the delivery and acceptance of the equipment. Other administrative expenditures for the PMU office: A contract for office supplies and a contract for accounting services were implemented. Activity 3.2: Technical control of design works and construction supervision of contracts using FIDIC conditions of contract - Yellow Book and Red Book - The contract with the contractor was signed on 23 March It is in progress and is implemented in respect of all already signed construction contracts. Activity 3.3: Information and publicity measures - ongoing activity implemented by the beneficiary and the contractor under contract 777-УР-10/ The contract is in progress. The following have been awarded and implemented to date: development of presentation materials, logo and project website, kick-off conference, groundbreaking ceremony, 6 working meetings, 7 publications, 1 working conference. Activity 3.4: Project audit The decision of the contracting authority was appealed before the Supreme Administrative Court. 53

54 Timetable of activities Activities Start date Completion date Preparatory activities to secure the project implementation Preparation of technical specifications for technical assistance for development of investment projects and tender documents pursuant to PPL Preparation of tender dossier for public procurement procedure for reconstruction of DWTP March 2008 Ongoing March 2008 March 2008 June 2008 March 2009 Consolidation of project documents May 2008 May 2008 External services Ongoing Ongoing Coordination of projects and permits Ongoing Ongoing Activities under the investment program: reconstruction of DWTP, repair of 4 and construction of 1 pump station, rehabilitation and improvement of the water supply system, extension of the sewage system, rehabilitation of the sewage system, reconstruction of WWTP, production equipment for WWTP, grouped as follows: September 2011 April 2014 Reconstruction DWTP (and design work) October 2011 April 2014 Rehabilitation of water supply network and rehabilitation and extension of sewage network 1/3 October 2011 April 2014 Rehabilitation of water supply/sewage network 2/3 March 2012 March 2014 Rehabilitation of water supply/sewage network 3/3 March 2012 March 2014 Field supervision of construction works for the linear portion WSS network October 2011 April 2014 Reconstruction of WWTP September 2011 March 2014 Organization and management activities October 2010 July 2015 Support to PMU August 2011 July 2015 Technical control of design works and construction supervision of contracts using FIDIC conditions of contract Yellow Book and Red Book Gabrovo Integrated Water Cycle Project March 2011 June 2015 Information and publicity measures October 2010 July 2015 Project audit July 2011 July

55 Financial parameters Project funding sources (BGN) Securing beneficiary s contribution from an external loan extended by EIB Total value of Community National cofinancing Beneficiary co- the investment contribution (state financing (Cohesion Fund) budget) Gabrovo Municipality % 76% 19% 5% 5% Financial implementation of the project: Advance payment to beneficiary BGN (20% of the grant) Interim payments to beneficiary - BGN (11.68% of the grant) 3. Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality The Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality Project is a single project for construction of the following interrelated components: Non-hazardous waste landfill; Mechanical and biological treatment plant; Composting plant for green and biodegradable waste and construction of the supporting technical infrastructure for the operation of these sites (water-supply, roads and power supply). A letter from the President of the European Commission Jose Manuel Barroso recommended that the project should be approved in two phases: Phase one: construction of a landfill and a composting plant for green and biodegradable waste which will allow to stop the infringement procedure against Bulgaria; Phase two: construction of a mechanical and biological treatment plant - following an additional analysis in relation to the changed circumstances of the ownership of Toplofikatsia Sofia (Sofia District Heating Company) and an opportunity for more efficient use of the waste-generated fuel which is the main product of the mechanic and biological treatment plant. Grant Contract No. DIR C001 of 27 July 201, Additional Agreement No. 1/22 February 2012 to Grant Contract No. DIR C001/ and Additional Agreement No.1/22 February 2012 to Agreement for Implementation of Phase One of Project No. DIR "Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality" implemented with financial assistance from Operational Programme Environment co-financed from the European Regional Development Fund/Cohesion fund of the European Union were signed. On 19 December 2012, the European Commission approved the second phase of the project. The agreement for implementation of phase two was signed on 06 March

56 Information on the achievements and the activities planned for Phase One to date: 1) Construction of a non-hazardous waste landfill at Sadinata site - Yana Village. A contract worth BGN in total was signed with DZZD (a company under the Law on Obligations and Contracts) Geotechmin-Unieco Association on 26 August The construction site was opened on 29 August Act 15 certifying that the construction works are fit for acceptance was signed on 29 October DNCS has issued Occupancy Permit No.ST / for the following subphases and sub-projects: Sub-phase 1 with the following sub-projects: fence; checkpoint, weighbridge and reception area; in-site WSS networks and electrical facilities; fire water storage tank and pump station; washing and disinfection station; stormwater canal 1; service road from km 0+00 to km 0+550, from km to km ; distribution cock shaft; grates and PS building; underground water infiltration system tank; non-hazardous waste landfill vertical planning cells 1 and 2, including dike and gabion wall; lower insulation screen cell 1; infiltrate system cell 1; Sub-phase 2 with the following sub-projects: administrative building; repair shop; garage shed; tank from Han Bogrov; MBT tank; in-site communications and roads of WWTP; mixing tank, desanding grit and pump station building, service road from km to km ; WWTP; cell 2 lower insulation screen; cell 2 infiltration system; area lighting; precipitation water holding tank; stormwater canal 3; pump station for domestic sewage; precipitation water system around dike and along dike 1; vertical planning of reception area and pavements; Sub-phase 3 with the following sub-projects: landscaping; stormwater canal 2; gutter. 2) Design and construction of composting plant for green and biodegradable waste at Han Bogrov site - Gorni Bogrov village Contract No. RD / was signed with Consortium Egersmann & Co. The total accepted value of the contract is BGN inclusive of VAT. The start date of project implementation is 11 June The Engineer has approved the work programme of the Contractor. The following activities are implemented: - Administrative building (sub-project No.1) - backfilling, formwork and reinforcing works for edge beams; - Mechanic shop (sub-project No. 2) - formwork, reinforcing and concrete works for unit foundations, edge beams and repair shafts (for shafts only the formwork is implemented), the anchor groups for the metal pillars are mounted, backfilling works with tamping of layers up to the level of the upper edge of the monolithic foundations are being implemented; - Domestic sewage tank (sub-project No.5) mass excavation works phase I; - Technological, fire and precipitation water tanks and pump stations thereto (sub-project No ) the mass excavation works for phase I and the fire safety and protection of the population (FSP) measures have been completed for these sub-projects. Implementation of drilling works for water abstraction wells has started; - Room for delivery and preliminary (mechanical) treatment of green waste (sub-project No.10) - completed works include foundations of the building and backfilling with tamping of layers up to the level of the upper edge of the mounting cup. Mounting and 56

57 building in of prefabricated reinforced concrete pillars has been implemented. Formwork and reinforcing works for reinforced concrete enclosure walls are being implemented; - Preparation room for filling and emptying compost cells (green compost, sub-project No.11) - completed are the works for the foundations of the building, as well as the backfilling with tramping of layers up to the level of the upper edge of the mounting cup. Formwork and reinforcing works for reinforced concrete enclosure walls are being implemented; - Compost cells and air filtration installation (green compost sub-project No.12) mass excavation works have been implemented, the concrete base has been laid; - Room for further maturation of green compost (sub-project No.13) - completed are the works for the foundations of the building, as well as the backfilling with tamping of layers up to the level of the upper edge of the monolithic foundation. Assembly and building in of prefabricated reinforced concrete pillars is being implemented; - Building for screening and storage of finished green compost (sub-project No.14) - completed are the works for the foundations of the building (unit and strip foundation), as well as the backfilling with tamping of layers up the level of the upper edge of the monolithic foundation; - Room for delivery and preliminary (mechanical) treatment of bio waste (sub-project No.15) - completed are the works on the foundations of the building (unit and strip), as well as the backfilling with tamping of layers up to the level of the upper edge of the mounting cup. Assembly and building in of prefabricated reinforced concrete pillars are being implemented; - Anaerobic composting area (bio compost sub-project No.16) mass excavation works (bioreactor and buffer tanks) have been implemented; the concrete underlay (under the foundations of the buffer reactor) has been laid. Formwork, reinforcing works and concrete works for strip foundations (bioreactor and buffer tanks) have been implemented; - Compost cells and air filtration installations (bio compost sub-project No.17) completed are the works on the foundations of the building (room for filling and emptying compost cells); backfilling with tamping of layers up to the level of the upper edge of the mounting cup is being implemented. Mass excavation works for compost tunnels have implemented and the concrete base has been laid; - Store for screening and storage of bio compost (sub-project No.18) - completed are the works on the foundations of the building (unit and strip), as well as the backfilling with tamping of layers up to the level of the upper edge of the monolithic foundation; - Control room (sub-project No.19) mass excavation works and concrete base have been implemented. - Truck scales (sub-project No.3), parking areas (sub-project No.4), waste water infiltration tank (sub-project No.6), tube well (sub-project No.7), open-air site - store area for green waste raw material (sub-project No.8), kiosk-switchgears (sub-project No.9) - works are not being carried out. 3) Consultant in the meaning of SDA to carry out compliance assessment of investment projects, provide construction and act as Engineer in the meaning of FIDIC. The contract with IGIP-CEG-ICEPE-HIS /ICIH/ Association was signed on 26 August To date, the contractor is providing supervision of the construction works for Sadinata nonhazardous waste landfill. After Contract No. RD / was signed with Consortium Egersmann & Co.; an advance payment at 21% was made to the Consortium under the price component for "Composting installation for green and biodegradable waste 57

58 (Han Bogrov site)". The contractor provides supervision of construction works at Han Bogrov site. 4) Optimisation of the separation installation at the non-hazardous waste landfill in Suhodol The activity was implemented in the period The expenditure was included in a request for payment and was reimbursed. 5) Pilot project for separate waste collection in Ovcha Kupel and Kremikovtsi neighbourhoods Contract No. RD / worth BGN inclusive of VAT was signed with the contractor Euromarket Construction AD. Advance payment at BGN was made. 6) Project management In November 2011, a project management unit (PMU) for the implementation of the project was set up with Order No. RD / , replaced by Order No. RD / of the Mayor of Sofia Municipality. According to the Project Management Concept incorporated by reference as Attachment No. 1 of Additional Agreement No / to Grant Contract No. DIR C001/ , a Services Supervision Unit (SSU) was set up pursuant to the approved organizational scheme. SSU is a subunit of the Project Management Unit. Sofia Municipality intends to use the SSU as the main platform for the subsequent operation of the whole integrated system. 7) Project audit Contract No. RD worth BGN inclusive of VAT was signed with Global Audit Services Ltd. on 29 June The audit plan of the contractor was approved on 06 August To date, the contractor has submitted in accordance with the plan 5 interim audit reports and audit reports on the 10th and 12th requests for payment from OPE. 8) Publicity The tendering procedure under PPL for selection of contractors for "Implementation of information and publicity measures within Project No. DIR "Implementation of Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality"", involving three separate positions, was opened on 30 July Nine proposals were submitted and were opened on 12 September The procurement procedure for "Implementation of information and publicity measures within Project DIR "Implementation of Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality"" was cancelled with Decision No. SO-RD / on the grounds of Item 5 of Article 39(1) of PPL. Information on the achievements and the activities planned for the second project phase to date: In connection with the implementation of Phase II, on Sofia Municipality opened a call for proposals for Design and construction of a mechanical and biological treatment 58

59 (MBT) plant with RDF production. The deadline for submission of project proposals was March 30, The project proposals were opened on April 2, The selection of contractor is pending. Start date (А) Completion date (В) 1. Feasibility study 12/07/ /08/ Cost-benefit analysis (including financial analysis) 24/10/ /02/ Environmental impact assessment: 17/03/ /12/ Study on the environmental impact assessment according to the result of the analysis 08/ / Environmental assessment: 4.1. DDP-Plan for regulation and construction for defining the terrain of Han Bogrov site 4.2. DDP-Plan for regulation and construction for defining the terrain of Sadinata site for construction of facilities for non-hazardous waste treatment 5. Evaluation of the compliance with NATURA 2000 scope and objectives for preservation of protected areas 12/03/ /01/ /07/ /10/ /03/ /12/ IPPC permit 04/08/ /04/ Permit according to the Water Act 10/02/ /09/ Design works (conceptual designs): 8.1. Non-hazardous waste landfill 03/03/ /09/ MBT plant 03/03/ /01/ Composting plants 03/03/ /10/ Design works (detailed designs): 9.1. Supporting technical infrastructure 24/09/ /09/ Non-hazardous waste landfill 27/06/ /01/ MBT plant 30/04/ /10/ Composting plants 15/05/ /08/ Construction permit: MBT plant and non-hazardous waste landfill 20/03/ /07/ Composting plants 20/03/ /07/

60 10.3. Non-hazardous waste landfill 20/03/ /07/ Preparation of documents for upcoming procurement procedures: Check of the project Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality in accordance with OPE requiements Implementation of information and publicity measures 07/ / / / Pilot project for recycling in 2 regions in Sofia 01/08/ / Launched public procurement procedures Construction project and construction of a new MBT plant Check of the project Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality in accordance with OPE requiements 13. Public procurement procedures to be launched Design and construction of MBT plant Implementation of information and publicity measures 01/ Pilot project for recycling in 2 regions in Sofia 14. Construction stage / Construction contract (DNP included): Composting plants (Han Bogrov site) 01/09/ / Non-hazardous waste landfill (Sadinata site) 26/08/ /10/ Supporting technical infrastructure 06/08/ /12/ Renovation of existing municipal technical infrastructure 13/10/ /01/ MBT plant (Sadinata site) 30/10/ /12/ Operation stage: Composting plants (Han Bogrov site) 01/02/ /03/ MBT plant (Sadinata site) 01/06/ /03/ Non-hazardous waste landfill (Sadinata site) 01/11/ /03/ Supporting technical infrastructure 01/06/ /03/

61 Total value of the investment Project Funding Sources (BGN) Community contribution (Cohesion Fund) National cofinancing (state budget) Beneficiary cofinancing Sofia Municipality Securing beneficiary s contribution from an external loan extended by EIB % 60.60% 10.69% 28.70% 28.70% Financial implementation of the project: Advance payment to the beneficiary BGN (20% of the grant for phase I) Interim payments to the beneficiary - BGN (41.44% of the grant for phase I) 3. Major projects awaiting approval by EC Plovdiv Integrated Water Project - Phase I worth above MBGN (almost MBGN in grant and above 16.3 MBGN in municipal co-financing) and Integrated Project to Improve the Water Sector in Dobrich - Phase I worth above112.8 MBGN (above MBGN in grant and above MBGN in municipal financing) were submitted to the European Commission for evaluation in January The project "Rehabilitation of the water supply and sewage network and construction of WWTP for Asenovgrad, Bulgaria worth above 109 MBGN was submitted for evaluation in early March On 19 March 2012, the European Commission sent letters requesting additional explanations on the first two projects regarding the eligibility of the expenditures for VAT, on state aid cases, on the ownership and management of the WSS infrastructure, etc. MA of OPE replied in mid-august 2012, after coordination with the municipalities concerned and consultations with the Ministry of Finance and the Ministry of Regional Development and Public Works. In November 2012, EC sent a new letter with comments on the project proposals, with the eligibility of VAT and the state aid cases remaining an issue. At the end of Q1 of 2013, there are no developments on the main issues concerning the projects of Dobrich Municipality and Plovdiv Municipality. In view of the continuing evaluation process at EC, the scale of the projects and the fact that the current programming period is coming to an end, on 1 March 2013 the Council of Ministers of the Republic of Bulgaria agreed that the minister of environment and water in the capacity of Contracting Authority under OP Environment should sign the grant contracts with the municipalities of Plovdiv and Dobrich before the final approval of the projects by the European Commission. In the case where the full amount cannot be financed from the EU Cohesion Fund, the difference will be contributed from the state budget in accordance with the Law on the Structure of the State Budget. Preliminary grant agreements were signed with the municipalities of Plovdiv and Dobrich on 17 February This allows the procurement procedures for selection of contractors for the main project activities to be announced. The progress of the projects is as follows: 61

62 3.1. Integrated project to improve the water sector in Dobrich - Phase I In the second half of March 2012, Dobrich Municipality announced a procurement procedure for "Reconstruction and rehabilitation of the water supply and sewage network of Dobrich, Phase I", involving five separate positions for investment activities for the urban WSS network. Contractors have been selected for three of the positions (worth 38.7 MBGN in total) and the contracts with them will be signed once the grant contract with MoEW is signed. For the other two positions (worth 17.5 MBGN in total), SAC has brought the evaluation of project proposals back to the stage of technical evaluation of project proposals. As regards the procurement procedure for "Reconstruction and expansion of WWTP Dobrich (21.4 MBGN), the commission is at the stage of evaluation of the submitted project proposals for administrative compliance. The selection of a contractor under the procurement procedure for selection of a contractor for compliance assessment and construction supervision for the project is under appeal in the Supreme Administrative Court Plovdiv Integrated Water Project Phase 1 The procurement procedure for selection of a contractor for "Reconstruction of the water supply and sewage network of Plovdiv" is divided into 3 separate positions with estimated value of 31.8 MBGN. The notice was published in April and at the end of March 2013, following an appeal process, the contractors for the three positions were already selected. The estimated value of the procedure for selection of a contractor for reconstruction and completion of WTTP is 53.5 MBGN. The procedure was announced in February 2012 and at the end of March was under an appeal in SAC. The mayor of Plovdiv Municipality has issued a decision for the selection of contractors for supervision of the construction works for WSS network and WWTP (two separate positions). The appeals lodged against this decision before CPC were rejected; the time for appealing in SAC is running. The procedures for selection of a contractor for audit of the project, publicity and visualization, and provision of technical assistance have been announced. At the end of March the commission continue their work. 6. TECHICAL ASSISTANCE See 3.4. Priority axis 4 Technical Assistance. 7. INFORMATION AND PUBLICITY Information pursuant to Article 4(3) of Regulation (EC) No. 1828/2006, including achievements, examples, major events MEDIA COVERAGE PRINTED MEDIA The information and publicity measures guarantee transparency in the management and implementation of the programme and contribute to a higher general confidence in the work 62

63 of OPE. A limited resource was spent in the first years of the programme, active promotion starting back in In 2012, the information measures to achieve the general awareness of OPE realized their goals. This is proven also by the results of the daily media monitoring which shows a sustainable presence of OPE among the programmes receiving the greatest coverage. The work of OPE was covered in more than interviews, reportages, publications, etc. All events relating to the different implementation phases of the projects under the three priority axes of the programme - signing of grant contracts with municipalities /146 in 2012/, groundbreaking ceremonies and opening of completed projects financed from the programme - met with media interest. The purpose of these publicity measures is to raise public awareness and to contribute to better understanding of the scope, objectives and results of the programme. This was achieved by cooperation with the communication partners - the different electronic media. They help ensure the effective communication with the public. In 2012, most active in the coverage of the publicity activities for the programme were the following television channels: BNT, btv, NOVA TV and TV Evropa. The publicity broadcasts in these media were accompanied by a number of reportages, participations in discussions and interviews with representatives of MoEW, the beneficiaries and the contractors of projects under the programme. Thus the complex subject-matter of structural funds management and environmental protection were interpreted and commented in a way that is more accessible to the general public. Owing to this partnership, the performance results of OPE outreached a wide audience because the four channels broadcast nationally and enjoy wide public interest while covering different target audiences. The reportages and discussions on BNT, TV Evropa and NOVA TV were made with high quality, on time, without problems in the communication with the responsible persons. All publicity events were covered in an accurate, proper and professional manner. Thus the role of OPE as a tool for implementation of the environmental policy was highlighted and the contribution of the European Union was promoted. Covered were projects of different beneficiaries - municipalities, non-governmental organizations, structures of MoEW, citizen associations. On the other hand, the media events also help to change public attitudes and to sustain the results achieved through the projects financed from the programme. The publicity coverage of OPE in the radio channels BNR, Darik Radio, btv Radio Group (btv Radio, Jazz FM, Classic FM, Z-Rock, Melody) and Emmis Radio Group (FM+, Fresh, Star FM) consisted in publicity and information broadcasts, including audio clips, reportages, information rubrics, participation in discussions and interviews. Owing to this partnership, the results of OPE outreached a wide audience. Two of the radio channels /BNR and Darik Radio/ broadcast nationally and enjoy wide public interest. The other two radio channels are among the most listened two on air. The four of them cover different target groups. In addition to the common methods of informing the public about the operational programme and the contribution of EU for the objectives of the environmental policy and for improved quality of life, MA seeks opportunities to promote the environmental theme in a flexible and interesting manner. To this end, OPE organized the national campaign "Green Bulgaria" in an effort to present the results of the projects implemented under the programme to the general public in an interesting and understandable manner as well as to motivate and incentivize the beneficiaries to implement their projects with high quality and in time. The campaign changes citizens' thinking and makes it more eco-friendly. It describes the importance of our natural surroundings and puts in context the complex infrastructure projects funded mainly from the operational programme. Only with wide public awareness of the importance of the 63

64 environment and of the need every one of us to make efforts for its protection can sustainable results be achieved with EU taxpayers' money. The Green Bulgaria campaign has three categories - the greenest business, the most active municipality under OP Environment and the greenest city. Thirty companies across Bulgaria took part in the Greenest Business category. Initiatives, which were presented by companies that do not have environment protection as an element of their core business and were designed and implemented with own funds, devoting time, resources and money to care for the environment, were honoured on 19 June They are remarkable for utility, originality and long-term thinking and perspective. Prizes were awarded to a project for forestation and liquidation of unregulated landfills, a forestation programme, a wood tracking system ensuring conservation of forest species, a nongovernmental organization initiative for protection and renewal of forests in 10 Bulgarian nature parks which are part of NATURA One special price was awarded at the ceremony, to a hospital in Sofia for landscaping. The prizes were given by three ministers - the environmental, the financial and the economic. The campaign received wide coverage in all printed and electronic media. For another successive year the category "The Most Active Municipality under OP Environment" was realized in partnership with the National Association of Municipalities in the Republic of Bulgaria /NAMRB/. The now traditional annual meeting of the Bulgarian municipalities is a forum where the local authorities report achievements and solve pressing issues. The prizes in this category were awarded on the basis of objective criteria quickly passed evaluation, decent project proposal, good project management, etc. The awarding ceremony was held at the annual working meeting of NAMRB on 16 October Ten municipalities were awarded in six categories. 64

65 The Greenest City category is realized in partnership with Darik Radio. Reduced greenhouse gas emissions and energy savings resulting from energy efficiency measures implemented by the municipalities were the main criteria on which the cities were nominated in this category. With a view to complying with the equality and objectivity requirement, the Ministry of Environment and Water studied another 91 completed projects of municipalities financed from the Kozloduy Fund, the National Trust Eco Fund and by the Ministry of Regional Development and Public Works. Among these, in each one of six categories was awarded a city, depending on the number of the population in the respective municipality. Two consolation prizes were awarded for implemented projects "For Friendly Urban Environment" in With a view to keeping the public committed to the green way of life and partnership with nature, the two radio groups - btv Radio Group and the radio channels in the FM+ Group broadcasted eco-messages. Apart from being in harmony with the overall concept of the campaign, they also promoted the green way of life. The messages called for energy and water savings, waste recycling and other environment-friendly ideas. Inviting messages up to 15 seconds and eco-rubrics up to 60 seconds divided into two waves - winter and summer - were broadcasted within this media presence. The messages were positioned outside 65

66 commercial breaks, between songs in the prime time. Thus the idea of a life in harmony with nature, the title of the operational programme and MoEW sounded like a whole and highlighted the care taken of nature and of the future. Another new initiative - "Green Idea" - was realized within the cooperation with btv Radio Group in The main purpose of "Green Idea" was to collect in one place fresh environmental protection ideas and to focus attention on the unique sites in the Bulgarian nature. The campaign offered everyone an opportunity to propose an idea or say how our country can become even more beautiful, by sharing and showing what they would change in their town, in the park they go for a walk, in the mountain or seaside they like and by sharing a photo of the place in Bulgaria they find most enchanting and awakening their eco-attitude to our nature. More than 1200 useful ideas as well as wonderful photos were collected for about 5 months. More than 4500 people took part in the initiative. The ideas were shared in a special microsite of the campaign at and thus they outreached a lot more people. Anyone could scroll through the photos and ideas published, like or share them in Facebook and the other social networks. The campaign continued until 23 November 2012 and the winners were drawn and announced on NJoy on the same day. They were awarded at a special ceremony on 26 December PRINTED MATERIALS A booklet on the achievements of OPE was printed in It presented the overall progress of the programme and some good practices under the priority axes. 66

67 OPE WEBSITE In 2012, the content of the OPE was regularly updated. The site is accessible at two addresses of the World Wide Web: and The effective use of these sites and of the single information portal on the structural funds at contributes to quick and timely dissemination of information. The site content contains the following 18 headings: 1. General information 1.1 Managing Authority 1.2. Intermediate Body 1.3. Priority axes 1.4. Financial framework 2. News 2.1 Current news 2.2. Events 2.3. Information materials 2.4. Interviews 3. Programming Draft regulations 3.2. Presentations 3.3. Working group 3.4. Mainstreaming environment and climate change 4. Progress 4.1. Water sector 4.2. Waste sector 4.3. Biodiversity sector 4.4. Completed projects 4.5. Current projects 5. Beneficiaries 5.1 IMPORTANT 67

68 5.2. Project status 5.3. Simulation 5.4. Logos and billboards 6. Monitoring Committee 6.1 Minutes from MC meetings 6.2. Progress reports 6.3. Presentations 7. Calls for proposals 7.1. Upcoming calls for proposals 7.2. Current calls for proposals 7.3. Closed calls for proposals 7.4. Indicative annual work programme 8. Approved projects 9. Rejected projects 10. Documents Legislation European legislation Bulgarian legislation Manuals, instructions and guidance notes Committed errors and violations Statements of MA and IB Other documents 11. Irregularities 12. Questions and answers 13. Procurement 14. Interactive map Water sector Biodiversity sector Waste sector 15. Programme evaluation 16. Glossary 17. Contacts 18. Useful links 19. OTHERS ABOUT IS Seven notices on current calls for proposals under OPE were published in the OPE website in A new heading "Interactive Map" containing subheadings by priority axis - water, waste and biodiversity - was added. The projects in progress, the completed ones and those in evaluation are presented as points on the map of Bulgaria under this heading. New is also the heading Media Presence which was previously a subheading of News. Other new subheadings were also added - Interviews under the heading News, Working Group and Integration of Environment and Climate under the heading Programming which contains information on the next programming period, draft regulations of the Commission, presentations, etc. 68

69 The Progress heading is updated every two weeks. It presents with text and graphics the progress of OPE. The heading contains a number of subsections which present the information by sector - water, waste and biodiversity. Special focus is placed on completed and current projects. Photos, graphics and text are presented. The functionalities of the administrative panel were improved in 2012, allowing photo galleries and videos to be uploaded in the subsections Current News and Events. At the end of 2012, the pages in the website were new were developed and added in More than visits, including unique visits were registered between 01 January 2012 and 01 January Most visited are: News, Calls for Proposals, Beneficiaries, and Documents. A survey on the website quality was carried out among the visitors of OPE's website with a view to making improvements. The statistics showed general satisfaction and good quality of the website. According to the results, the site has good functionality, accessibility and user focus. What is your assessment of the options for access to the different categories, headings, subpages of the site (navigation, several access options are provided) Very poor Excellent The information in the website is updated on a regular basis. Do you agree with this statement? 69

70 To what extend does this site promote a more positive attitude to OPE on your part? To the lowest extent To the highest extent The website of OPE has good graphic design. Do you agree with this statement? The website of OPE is well structured and I easily find the information I am looking for. In accordance with Regulation 1828/2006, the OPE website contains a regularly updated list of beneficiaries. INFORMATION EVENTS Some of the general objectives which are an integral part of MA's obligations include: to raise public awareness of Environment OP and the contribution of the EU structural and cohesion funds in Bulgaria, to ensure transparency and relevant practical information for all target groups identified, and to raise beneficiaries' awareness of their responsibilities for implementation of the operations under OP, including their responsibilities relating to information and publicity measures. The information events target mainly the potential beneficiaries, the beneficiaries and the communication partners. In that light, 2012 was a year with a wealth of information and 70

71 publicity events. In the beginning of the year Minister of Environment and Water Nona Karadzhova signed 23 contracts for improving the status of endangered local animal and plant species on national territory. The contracts are worth 21 MBGN in total. Minister Karadzhova delivered 4 contracts worth two and a half million BGN in total to environmental organization and one contract for protection, care for and renewal of mixed riparian forests. In 2012, implemented commitments lead to ten groundbreaking ceremonies giving start to construction works under concluded contracts. The construction works on the treatment plant in Tenevo Village started in January Later in the year, in March, were the groundbreaking ceremonies for the projects of Varshets and Pirdop. The reconstruction and modernization of WWTP in Provadia was started in May. The project "Construction of sewerage and finishing the construction of a water pipeline in the village of Parvomaytsi", Gorna Oriahovitsa Municipality, is expected to provide sewage and water supply to 100% of the population of Parvomaytsi. The water project of Kozloduy Municipality is part of the Danube Strategy. Another three towns along the Danube (Nikopol, Tutrakan and Silistra) are also implementing projects in the WSS sector financed from Operational Programme Environment , worth 145 MBGN in total. The groundbreaking ceremony of the sewage network in Dolno Ezerovo neighbourhood of Burgas was implemented in August

72 Construction works on Balkan Peninsula's first specialized nursery garden - gene bank in a protected area have started. Eleven rare plant species typical for Strandzha will be restored and preserved. This is the objective of the project "Preservation and restoration of rare and protected plant species on the territory of Strandzha Nature Park" implemented by the Park Directorate. Construction works on establishment of the Regional Waste Management System (RWMS) of Burgas Region were successfully launched in November The municipalities of Burgas, Aitos, Kameno, Karnobat, Nessebar, Pomorie, Ruen, Sredets and Sungurlare are partners in the Waste Management Association of Burgas Region. The groundbreaking ceremony for construction of the water cycle of Vratsa was held on 10 December Vratsa Integrated Water Cycle Project is a major water project financed from Operational Programme Environment , worth MBGN in total. 72

73 The new sewage network of Valchi Dol was opened in May and the last two collectors under the project "Construction of 4 main sewage collectors on the territory of Ovcha Kupel Neighbourhood" were officially opened at the end of the year. On 1 November 2012, Minister of Environment and Water Nona Karadzhova, together with Prime Minister Boyko Borisov and Minister for EU Funds Management Tomislav Donchev, took part in the opening ceremony of the Regional Waste Management System of Botevgrad Region. This is the first system financed from Operational Programme Environment It is worth 14.4 MBGN and was opened eight months before the appointed time. On 2 April 2012, Minister of Environment and Water Nona Karadzhova and Minister of Agriculture and Food Miroslav Naydenov opened the nature protection centre "Forest Home" in Vrachanski Balkan Nature Park. The project for establishment of a multi-functional centre for key conservation activities received BGN in funding from Operational Programme Environment. The two ministers opened Forest Week 2012 which goes under the motto "Forest for Children". A major annual event in support of the development of NATURA 2000 was held on 6 June Within the pan-european initiative to celebrate the 20th anniversary of the Habitats Directive, the Ministry of Environment and Water, in cooperation with DG Environment of the European Commission organized a celebration of the event in Bialata Reka locality on the territory of Central Balkan Nature Park. There, Minister Karadzhova and Karl Falkenberg, 73

74 Director General, DG Environment, European Commission, opened the eco trail Bialata Reka renovated within a project under OP Environment. At the ceremony Minister Karadzhova announced that the fourth project of Central Balkan Nature Park was approved - Central Balkan Part for Everyone", worth е 55 MBGN. This is now the biggest project financed from OP Environment. It is scheduled for completion in ABSORBED FUNDS OPE has a budget of over 11 MEUR for its Communication plan, and by the end of 2012 it has paid 28,70% of it ( EUR). PARTNERSHIP The partnership principle, public involvement and transparent decision making are fundamental democratic principles which are interrelated and critical for good governance and sustainable development. These are the fundamental values of the EU and of its cohesion policy in particular. They should guarantee effective programming and implementation of the operational programmes, taking into account the needs and priorities of stakeholders and final beneficiaries at local level. MA and IB actively cooperate with and provide continuous support to municipalities on the preparation as well as on the implementation of projects. 74