C (2007) 6499 Approved on 20 th December 2007

Transcription

1 ON THE SOUTH BALTIC CROSS - BORDER CO - OPERATION PROGRAMME C (2007) 6499 Approved on 20 th December 2007 Annual Implementation Report according to Art. 67 of Council Regulation (CE) 1083/2006 of 11 th July

2 Table of content: I. INTRODUCTION...3 II. IDENTIFICATION...5 III. OVERVIEW OF THE IMPLEMENTATION OF THE OPERATIONAL PROGRAMME...6 Description of the actions undertaken in the Programme by the Managing Authority / Monitoring Committee...6 Achievement and analysis of the progress...9 Major projects...17 Assistance repaid or re-used, substantial modifications...17 Information about compliance with Community law...17 Significant problems encountered and measures taken to overcome them...17 Monitoring arrangements...18 Changes in the context of the operational programme implementation...19 Implementation by priority axis...22 IV. COHERENCE WITH COMMUNITY POLICIES AND OBJECTIVES, NATIONAL POLICIES, OTHER PROGRAMMES Coherence with Community policies and objectives...25 Coherence with National Strategic Reference Frameworks and with national Programmes and initiatives Complementarity with other programmes and initiatives implemented within Baltic area and other EU programmes V. TECHNICAL ASSISSTANCE...37 VI. INFORMATION AND PUBLICITY...37 VII. LIST OF TABLES AND GRAPHS...46 VIII. LIST OF ABBREVIATIONS AND TECHNICAL TERMS...46 IX. SIGNATURE...48

3 I. INTRODUCTION 1. South Baltic Cross- border Co-operation Programme (hereinafter referred to as Programme) was approved by the European Commission (EC) on 20 th December 2007 (Decision No CCI 2007 CB 163 PO 013). 2. This report is the second annual implementation report from the Programme according to the Art. 67 of Council Regulation (EC) No 1083/2006 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 (General Regulation). 3. The reporting period from 1 st January 2008 to 31 st December 2008 covers the period of Programme implementation. 4. The main purpose of the Programme is to strengthen the sustainable development of the South Baltic area through joint actions increasing its competitiveness and enhancing integration among people and institutions. 5. Programme area includes following NUTS III units: Kalmar län Kronobergs län Hovedstaden Blekinge län Skane län Sweden Lithuania Klaipedos apskritis Telsiu apskritis Sjaelland Denmark Rugen Stralsund Nordvorpommern Greifswald Rostock Bad Doberan Wiesmar Ostvorpommern Nordwestmecklenburg Uecker- Randow Germany Bornholm szczeciński koszaliński słupski Gdańsk- Gdynia- Sopot Poland gdański elbląski Russia Kaliningrad district Taurages apskritis South Baltic adjacent areas MRR, DWT, WRR Wrocław 6. The Programme consists of the following priority axes, which are divided into measures: Priority axis 1: Economic competitiveness.

4 Measure 1.1: Entrepreneurial development. Measure 1.2: Integration of higher education and labour markets. Measure 1.3: Transport accessibility. Priority axis 2: Attractiveness and common identity. Measure 2.1: Management of the Baltic Sea Environment. Measure 2.2: Energy saving and renewable energy. Measure 2.3: Sustainable use of natural and cultural heritage for regional development. Measure 2.4: Local community initiatives. Priority axis 3: Technical assistance. 7. Ministry of Regional Development of Poland (MRD) is the Managing Authority (MA) for the Programme. 8. Programme European Regional Development Fund (ERDF) contribution amounts to 60,7 mln Eur, the total funding to 75,3 mln Eur. National contributions to the Programme ERDF: Table 1. National contributions to the Programme ERDF Denmark Germany Lithuania Poland Sweden Total Total co-financing rate 75% 85% 85% 85% 75% 81% 4

5 II. IDENTIFICATION OPERATIONAL PROGRAMME Objective concerned Objective 3: European Territorial Cooperation ANNUAL IMPLEMENTATION REPORT Eligible area concerned Programming period Programme number (CCI No) Programme title Reporting year 2008 Date of approval of the annual report by the Monitoring Committee Poland: Szczeciński, Koszaliński, Słupski, Gdański, Gdańsk-Gdynia- Sopot sub-regions and as adjacent (according to the 20% rule ): Elbląski sub-region, Sweden: Kalmar, Blekinge, Skåne Counties and as adjacent: Kronoberg County, Germany: sub-regions of Mecklenburg-Vorpommern: Greifswald, Rostock, Stralsund, Wismar, Bad Doberan, Nordvorpommern, Nordwestmecklenburg, Ostvorpommern, Rügen, Uecker- Randow, Denmark: Regional Municipality of Bornholm and as adjacent: Zealand subregion, Lithuania: Klaipeda County and as adjacent: Taurage and Telsiai Counties CCI 2007 CB 163 PO 013 South Baltic Cross- border Co-operation Programme Written procedure: 21 st May th June 2009

6 III. OVERVIEW OF THE IMPLEMENTATION OF THE OPERATIONAL PROGRAMME Description of the actions undertaken in the Programme by the Managing Authority / Monitoring Committee In the reporting period the implementation structures and procedures have been set up and Programme launched two call for proposals. 1. Institutional structure of the Programme. With regard to the implementation of the Programme, the Member States have agreed on the structures for the Programme implementation; in the reporting period formal arrangements for the operation of them have been established. On the basis of the Agreement on co-operation in establishing the Joint Technical Secretariat with the Cooperation Fund Foundation (CFF) on 3 rd October 2007, the Managing Authority (MA) signed a Contract on establishing and operating a Joint Technical Secretariat for the South Baltic Cross-border Co-operation Programme with the CFF on 19 th February 2008 (with following annexes from 30 th June 2008 and 30 th September 2008). The recruitment procedures were implemented, following Programme settlements, and the process started on 11 th March 2008 and was finalized with the interviews with candidates in April Furthermore, contracts on establishment and operation of the Contact Points in Sweden and Germany were signed, accordingly on 27 th November 2008 and 22 nd December Contract with the Contact Point Denmark has been subjected to prior signature of the Letter of Agreement on implementation of the Programme, which was not signed in the reporting period. Establishment of the Contact Point in Lithuania is conditioned by the financial arrangements, considering the institution to be hosting the Contact Point. During the reporting period the Letter of Agreement on implementation of the Programme has been consulted. It is plan to sign the document in the first half of During the programming process the following meetings with Programme partners were organized: 10 th January 2008 Wismar (Germany) Working Group; 22 nd January 2008, Gdańsk (Poland) Monitoring Committee s first meeting; 23 rd January 2008, Gdańsk (Poland) seminar for Contact Points, Working Group; 3 rd June 2008, Gdańsk, (Poland) Working Group; 3 rd July 2008, Gdańsk (Poland) Steering Committee s first meeting, Monitoring Committee s second meeting 28 th - 29 th August 2008, Karlskrona (Sweden) Working Group; 24 th November 2008, Gdańsk (Poland) consultation meeting with Contact Points Working Group.

7 4. Progress in the work by the Monitoring Committee and the Steering Committee 22 nd January 2008 first Monitoring Committee (MC) meeting, Gdańsk (Poland). Following issues were subject for MC decision: MC Rules of procedures Programme Technical Assistance (TA) budget Programme Manual Application Form with the Guidelines; Project Selection Criteria. 3 rd July 2008 second MC meeting, Gdańsk (Poland). Following issues were subject for MC decision: Changes to the Programme TA budget Dates for upcoming call for proposals Information on proposal of changes to the Programme documents for the second call for proposals. Following written procedures of the MC were held during the reporting period: 14 th February th February 2008 approving the Application Form with the Guidelines on filing in and submitting the Application Form and the composition of the Steering Committee; 12 th March th March 2008 approving Programme Manual for the first call for proposals; 12 th June rd June 2008 approving Steering Committee Rules of procedures; 10 th June th June 2008 approving Annual Implementation Report 2007; 25 th June th July 2008 approving Application Forms for the TA Project on establishment and operation of the Contact Points for Sweden, Germany and Denmark; 10 th October th October 2008 approving changes to the Application Form (for the second call for proposals); 26 th September rd October approving the Programme Manual for the second call for proposals and criteria for the assessment (assessment sheet) to be used for the projects submitted in the coming calls for proposals. 3 rd July 2008 first meeting of the Steering Committee (SC), Gdańsk (Poland). The SC approved four projects for co-financing within the Programme. Following written procedures of the SC were held during the reporting period: 12 September October decision on two projects: "South Baltic Maritime Traditions Route MariT and "South Baltic Artistic Platform: Crossborder Cooperation - PO-MOST" 4. Programme implementation procedures. 7

8 During the reporting period structures necessary for Programme implementation were set up and the Programme started the implementation phase. All procedures and documents concerning the application to the Programme as well as its implementation were established and approved. The institutional structures, for the most part were also constituted. In the reporting period the Description of Management and Control System (DMCS) for the Programme according to Article 71 of the General Regulation was prepared. The DMCS was subject for the audit on compliance with Articles of the General Regulation. Audit was carried out by the Audit Authority (AA) together with the Group of Auditors: Audit Authority General Inspector for Treasury Control via Department for Protection of the EU Financial Interests DO Department (previously - Department for Certifying and Issuing Declarations on Winding-Up of EU Assistance), together with Treasury Control Offices (supervised by DO Department). Group of Auditors: Internal Audit Division of Ministry of the Interior in the Republic of Lithuania; EU Resources Audit Department of National Financial Management Authority in Sweden; EU Control Unit within Danish Enterprise and Construction Authority (DECA); Unit 130 within the Ministry of Economics, Labour and Tourism in Mecklenburg Vorpommern. Audit were performed from 15 th July up to 19 th December The description of the systems, accompanied by an assessment report with opinion of compliance with Articles (setting out of the findings of the audit carried out), was sent to the European Commission (EC) on 23 rd December 2008 via SFC system. The AA report did not cover reports from Sweden and Mecklenburg Vorpommern, as they were not received by the time of submission of the documents to the EC. The system was given the opinion qualified as a result of lack of reports from Sweden and Mecklenburg Vorpommern. Moreover, the first level control system in Lithuania was assessed as non-operable. An action plan concerning the AA s finding were implemented by the MA together with the AA and the Group of Auditors. The implementation of recommendations of medium or low importance will be a subject of detailed review during yearly system audits. The implementation of recommendations referring to the first level control in Lithuania were dealt with. Reports from Sweden and Mecklenburg Vorpommern were also received. On 30 th March 2009 information about corrective actions was sent to the EC via SFC. Furthermore, in the reporting period, the monitoring system KSI SIMIK ( ) was also subject for the audit on compliance with General and Implementing Regulations. System received a positive opinion. More information concerning the KSI system please find in the Chapter MONITORING ARRANGEMENTS. 8

9 5. Activities planned for the next reporting period. Following activities are planned for the next reporting period (2009): - Steering and Monitoring Committees 6-8 April 2009 in Kalmar/Sweden; - Lead Beneficiaries seminar of the approved project in the 2 nd call for proposals, 9 th June 2009, Gdańsk/Poland; - Match Meeting, seminar/workshops for applicants, 16 th 17 th June 2009, Bornholm/Denmark; - Launch of the third call for proposals, 15 th July 30 th September 2009; - Following documents to be signed: Letter of Agreement on the implementation of the Programme, Contract on the establishment and operation of the Contact Point in Denmark and Lithuania; Moreover, it is planned to implement all the recommendations set out by the AA concerning the audit on compliance with Articles of the General Regulation, which are to be subject for yearly audits by the AA. Achievement and analysis of the progress 1. Information on the physical progress of the Operational Programme qualitative analysis. During the reporting period two call for proposals were organized. Within the calls all together 39 projects were submitted of the value of more than 36 mln Euro, ERDF. Submitted projects constitute 52% of available allocation for Priority axis 1 Economic competitiveness, and more than 70% of allocation for Priority axis 2 Attractiveness and common identity. Graph 1: Value of applications submitted within the first and second call for proposals as compared to the Programme financial allocation, mln Euro, ERDF Value of applications submitted within the first and second call for proposals as compared to the Programme financial allocation, mln Euro, ERDF mln ,6 22,5 24,31 11,77 Priority axis 1 Priority axis 2 Allocation Value of submitted applications 9

10 1. First call for proposals: 26 th March 2008 till 30 th April Within the first call for proposals 17 projects were submitted of the value of more than 17,8 mln Euro ERDF (21,9 mln Euro total). Measure 2.3 Sustainable use of natural and cultural heritage for regional development was most popular within beneficiaries and most projects were submitted within this measure (9 projects) and amounted to the highest percentage, mainly 60% of all applied ERDF funds within the Programme. Within measure 2.4 Local community initiatives 4 projects were submitted amounting to 21% of all applied funds, followed by measure 1.1 Entrepreneurial development gathering - 3 projects, amounting to 15% of all applied funds. The SC approved 4 projects amounting to 4,5 mln Euro ERDF, all from measure 2.3 Sustainable use of natural and cultural heritage for regional development. Graph 2: Value of projects submitted within the first call for proposals by measures, mln Euro ERDF Value of projects submitted within the first call for proposals by measures, mln Euro ERDF mln Euro ERDF 12,00 10,00 8,00 6,00 4,00 2,00 0,00 10,76 3,82 2,67 0, Measure 2. Second call for proposals: 20 th October 2008 till 9 th January Within the second call for proposals 22 projects were submitted amounting to more than 18,2 mln Euro, ERDF (22,6 mln Euro total). Most project were submitted within the measure 2.4 Local community initiatives 6 projects, followed by measure 1.1 Entrepreneurial development 5 projects and measure 2.1 Energy saving and renewable energy 4 projects. Projects submitted within measure 2.1 Energy saving and renewable energy amounted to more than 25% of all applied ERDF funds, followed closely by measure 1.1 Entrepreneurial development amounting to 23% applied in this call funds. No projects were submitted within the measure 2.3 Sustainable use of natural and cultural heritage for regional development. 10

11 Graph 3: Value of projects submitted within the second call for proposals by measure, mln Euro, ERDF Value of projects submitted within the second call for proposals by measure, mln Euro, ERDF mln 5,00 4,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 4,27 4,60 2,40 2,58 2,56 1,89 0, In the reporting period the indicator Number of projects demonstrating more efficient use of natural and cultural heritage of the South Baltic area for regional development reached 40% of target value. Universal result indicators: Number of projects creating cross-border networks based on formal agreements amounted to 26,6% of target value Number of projects with politically welcomed and promoted results - 6,67% Number of projects unlocking private and public investments 14,28 %. Table 2: Programme indicators Indicator Total Priority axis 1 WITH POLITICALLY WELCOMED AND PROMOTED RESULTS CREATING CROSS-BORDER NETWORKS BASED ON FORMAL AGREEMENTS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 15 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 UNLOCKING PUBLIC AND PRIVATE Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 11

12 INVESTMENTS Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 CONTRIBUTING TO INTENSIFIED CROSS-BORDER RELATIONS BETWEEN SMALL AND MEDIUM SIZE ENTERPRISES IN THE Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 SOUTH BALTIC AREA Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 STRENGTHENING LIAISONS BETWEEN HIGHER EDUCATION AND LABOUR MARKET INSTITUTIONS OF THE SOUTH BALTIC REGIONS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 10 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 CONTRIBUTING TO IMPROVED QUALITY AND INTEROPERABILITY OF TRANSPORT CONNECTIONS AND SERVICES IN THE Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 5 SOUTH BALTIC AREA Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 Indicator Total WITH POLITICALLY WELCOMED AND PROMOTED RESULTS Achievement 0 2 n/a n/a n/a n/a n/a n/a n/a 2 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 30 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 Priority axis 2 CREATING CROSS-BORDER NETWORKS BASED ON FORMAL AGREEMENTS Achievement 0 4 n/a n/a n/a n/a n/a n/a n/a 4 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 15 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 UNLOCKING PUBLIC AND PRIVATE INVESTMENTS Achievement 0 1 n/a n/a n/a n/a n/a n/a n/a 1 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 12

13 IMPROVING INSTITUTIONAL CAPACITY IN THE MANAGEMENT OF THE BALTIC SEA ENVIRONMENT Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 10 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 INCREASING COMMITMENT TO RENEWABLE ENERGY SOURCES AND ENERGY SAVING PATTERNS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 4 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 DEMONSTRATING MORE EFFICIENT USE OF NATURAL AND CULTURAL HERITAGE OF THE SOUTH BALTIC AREA FOR REGIONAL Achievement 0 4 n/a n/a n/a n/a n/a n/a n/a 4 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 10 DEVELOPMENT Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 INTENSIFYING INTERCULTURAL DIALOGUE AND BETTER INVOLVING BROADER PUBLIC IN CROSS-BORDER ACTIVITIES Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 20 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 2. Financial information In the reporting period projects were approved for the co-financing however the reporting have not started. Only the first expenditures incurred by the JTS within the Technical Assistance were reported to the MA in 2008, in the amount of ,38 EUR ( ,28 EUR ERDF). Within the Contract on the establishment and operation of the Joint Technical Secretariat an amount of ,42 EUR ( ,57 EUR ERDF) was paid to the CFF within the advance payment. Table 3. Priority axes by source of funding (Eur) Expenditures paid out by the beneficiaries included in Progress Reports sent to the Managing Authority eligible ERDF national cofinancing Private expenditure Expenditure paid by the MA to the beneficiaries Total payments received from the EC year 2008 Priority axis 1 0,00 0,00 0,00 0,00 0,00 13

14 Priority axis 2 0,00 0,00 0,00 0,00 0,00 Priority axis , ,09 0, ,57 0,00 TOTAL , ,09 0, ,57 0,00* From the beginning of the implementation of the Programme Priority axis 1 0,00 0,00 0,00 0,00 0,00 Priority axis 2 0,00 0,00 0,00 0,00 0,00 Priority axis , ,09 0, ,57 0,00 PROGRAMME TOTAL , ,09 0, ,57 0,00* * The table does not show the advance payments received from the European Commission. EUR = 3,7745 PLN In 2008, the EC paid to the Programme ,95 Euro ERDF as the advance payment. In the reporting period no validation of payments was submitted to the EC. In the next reporting period (2009) the MA plans to submit the payment requests to EC in the amount of 1,24 mln Euro ERDF. 3. Information about the breakdown of use of the Funds In the reporting period no changes appeared concerning indicative allocation of funds for codes of dimensions as compared to the allocation defined in the Operational Programme and presented in the annual report for Table 4. Indicative information as to the subsidy (ERDF) granted by codes of dimensions in 2008 Codes by Dimension: Priority theme Codes by Dimension: Form of finance Codes by Dimension: Territory type Value , , , , , , , , , , , , , , , , , , , , ,00 14

15 , , , , , , , , , , , , , , , , , , , , , , , , , , ,00 4. Assistance by target groups During the first call for proposals 105 beneficiaries applied to the Programme within the submitted projects. Most applicants presented the public authorities of different levels (48%), most of them came from the local public authorities, around 30% of all applicants. The considerable group constitute public corporations, which include among others public universities, educational institutions as well as NGOs. 15

16 Graph 4: Beneficiaries applied by the type of institution, 1 st call for proposals Beneficiaries applied by the type of the institution, 1st call for proposals National public authority Regional public authority Local public authority Public corporation Registered association Local goverment association 5 Ineligible Partner 1 Other 12 The second call for proposals confirmed the applicants institutional structure in the Programme. Most of the 154 applicants which applied, came from the local authorities, around 35%, followed by regional authorities and public universities, which both amounted to 15% of all applicants each. Quite considerable group of applicants constituted the NGOs around 8% of all applicants. Graph 5: Beneficiaries applied by the type of institution, 2 nd call for proposals 16

17 Beneficiaries applied by the type of institution, 2nd call for proposals enterpreneurship support structure chamber of commerce other publicly owned organisation public university R&D institution school or other educational organization (except universi... national authority NGO local authority regional authority association of local and regional governments budgetary institution Major projects Not applicable Assistance repaid or re-used, substantial modifications No assistance was repaid or re-used as referred to in Articles 57 and 98(2) of the General Regulation in the reporting period. No modifications under Article 57 of the General Regulation occurred. Information about compliance with Community law During the reporting period no significant problems occurred relating to the compliance with Community law and no information was obtained about any infringements as to its provisions. Significant problems encountered and measures taken to overcome them In the reporting period no significant problems were identified concerning Article 62 (1) (d) (i) of the General Regulation. Due to the fact that an opinion of compliance with Articles of the General Regulation sent to the EC did not cover reports from Sweden and Mecklenburg Vorpommern, as they were not received by the time of submission of the documents to the EC, the system of 17

18 management of control system was given the opinion qualified. As a result of the audit carried out, the first level control system in Lithuania was assessed as non-operable. An action plan concerning the AA s finding were implemented by the MA together with the AA and the Group of Auditors at the beginning of As a result of actions undertaken on 30 th March 2009 information about corrective actions was sent to the EC. Monitoring arrangements 1. Monitoring and evaluation system Monitoring system for the Programme bases on the information received from Lead Beneficiaries of projects approved for co-financing within the Programme. The system bases on four-months reporting periods set for the Beneficiaries of the Programme. Data received from Lead Beneficiaries is compiled at the Programme level in order to prepare annual and final reports to the EC and other monitoring information. The evaluation of the Programme is carried out according to Art of the General Regulation. The aim of the evaluation is to improve the quality, effectiveness and consistency of the assistance from the EU Funds, and its consistency with the EU and the Programme partners objectives. It also directs to improve the strategy and to make Programme implementation more effective. In the year 2008 no evaluation analysis were made for the purpose of the Programme. Computerized databases In accordance with Art. 66 (3) of the General Regulation data on the Programme is transferred through Structural Funds Common Database (SFC) established by the EC. The access rights to the SFC Database are assigned to the Territorial Cooperation Department in the MRD (acting as the MA). According to the Art. 58 (d) of the General Regulation concerning the creation of a reliable computerized accounting and monitoring system for reporting purposes, in the reporting period the system was created - National Information System for Poland (Krajowy System Informatyczny), KSI (SIMIK ). The monitoring system for European Territorial Cooperation Programmes (ETC) managed by Polish Ministry of Regional Development is one of modules of the KSI (SIMIK ). In the reporting period, the monitoring system KSI SIMIK ( ) was subject for the audit on compliance with General and Implementing Regulations, carried out by the IT Unit in the AA and which ended on 3 rd December The system received a positive opinion on compliance assessment. The range and format of KSI (SIMIK ) is in accordance with the General Regulation (Article 58 d). 18

19 The scope of data required to be gathered is in compliance with Implementing Regulation annex III. The system was implemented in production environment on 16 th December Graph 6: Print screen of the KSI (SIMIK ) system First level control Reporting system for Beneficiaries bases on the first level controllers. According to Art. 16 of the General Regulation each Member State is responsible for setting up the system of national first level controllers to certificate the expenditures incurred by project beneficiaries. During the reporting period all Member States have set up the systems for the first level controls. As a result of the audit on compliance with Articles of the General Regulation the first level control system in Lithuania was assessed as non-operable. The shortcomings concerning the system have been dealt with at the beginning of Changes in the context of the operational programme implementation During the 2008 no changes which might have had significant influence on the context of the Programme implementation in the reporting period occurred. In the scope of the Programme implementation, the financial market crisis which appeared on the European markets around September 2008 can not be overlooked. The global economy has been facing a financial crisis involving banking systems, stock markets and the flow of credit, which might result in further changes in macroeconomic indicators, and consequently influence the socio-economic situation of regions involved in Programme implementation. Financial crisis hit mainly in banking systems as well as credit policies, but it is predicted that in course of time the crisis may also influence households and businesses. Due to the occurred situation, the European institutions have been seeking common strategies to solve the difficulties, aiming to improve the financial systems. On 26 th November 2008 the EC announced a comprehensive plan to help the EU economy recover from the crisis. Combining national actions with EU policy, the plan aims to generate growth and jobs, improve global cooperation and to make the EU law flexible. Furthermore the EU has been planning to inject the EU s economies with 2 milliards Euro in order to intensify spending and boost the slowing economies. 19

20 In response to the financial problems the EC prepared and issued the EC Communicate From financial crisis to recovery: A European framework for action, describing recovery actions which were supposed to be undertaken. The changes referred to among others changes in EU regulations: the General Regulation, the Implementing Regulation and the 1081/2006 Regulation, concerning among others: projects generating revenues, advance payments to the Programme, etc. There were no significant changes resulted from the financial market crisis to the socio economic situation of countries participating in the Programme in the Eventual changes in the macroeconomic indicators and situation of particular regions, as well as their potential influence on the situation in the South Baltic area and implementation of the Programme will be assessed in the next report for the year General macroeconomic and socio-economic indicators for each Member State participating in the Programme are presented in the table below. Table 5: Main macroeconomic indicators for each Member State participating in the Programme. Member Growth rate of Unemployment rate (%) Total State GDP volume - investment - percentage % of GDP change on previous year Annual average inflation rate - Annual average rate of change in Harmonized Indices of Consumer Prices (HICPs) % Public investment - % of GDP December Poland 6,6 4,8 9,6 7,1 7,0 2,6 4,2 21,6 22,0 4,1 4,6 Sweden 2,6-0,2 6,1 6,2 7,0 1,7 3,3 19,0 19,6 3,1 3,3 Germany 2,5 1,3 8,4 7,3 7,2 2,3 2,8 18,7 19,2 1,5 1,5 Lithuania 8,9 3,0 4,3 5,8 9,7 5,8 11,1 28,0 24,8 5,2 4,9 Denmark 1,6-1,1 3,8 3,3 4,3 1,7 3,6 22,2 21,5 1,7 1,8 Source: EUROSTAT The slight changes in the economic situation of Member States in 2008 caused no influence on the Programme implementation, but show indications for the possible tendencies which might appear in 2009 and later on and which are shortly described below. As mentioned above, the financial crises can have significant influence on the macroeconomic indicators in the future. It is estimated that the most critical moment would be the first quarter of 2009 and the first half of Inevitably, the crisis will also have an effect on households and businesses - economic growth is supposed to slow sharply in some EU countries and unemployment is about to begin to increase for the first time in several years. Moreover, according to the International Monetary Fund s forecasts it is estimated that the inflation rate may rise significantly in most of the EU countries in First symptoms of deepening crisis were visible already at the end of The macroeconomical indicators vary among countries depending on previous economical state and development and most of all previous economic growth dynamics. GDP growth dynamics 20

21 The growth of the GDP in all five member states slowed down in 2008, but still in Poland, Lithuania and Germany showed the growing tendencies. As compared to 2007 GDP grew by 4,8% in 2008 in Poland, by 3% in Lithuania and 1,3% in Germany. Only Sweden and Denmark noted decrease in the GDP dynamics in 2008 by 0,2% in Sweden and by 1,1% in Denmark as compared to Quite significant rise of the GDP in Poland and Lithuania resulted from the fact that both countries had noted considerable dynamic economic development in recent years, which exceeded an average EU level. The newly appeared crisis should have the most influence in the first step on economies relying in the greatest parts on the services, due to the limited credit possibilities and more stringent banking policies and in later stages economies based on industries due to the decreasing demand and productivity. Unemployment It is predicted that the financial crisis may have the most influence on the labour markets and the unemployment may increase visibly in all EU economies. In 2008 the unemployment rate grew slightly in Sweden by 0,1 percentage points as compared to 2007 and considerably in Lithuania, which noted the increase of 1,5 percentage points and was not able to maintain the trend of decreasing unemployment rate trend which was noted in previous years. It must be underlined that the unemployment rate in Sweden, Germany and Lithuania grew beyond a year-average level in December 2008, when first consequences of the crises started to be visible. The higher outcomes of the indicator for December 2008 resulted in the higher indicator for the whole 2008 in these countries. Inflation It is predicted that the growing inflation rate may rocket high levels in The increasing inflation rate tendencies were visible already in 2008 as a consequence of the financial crisis which first appeared in the US economy, further widening on other world economies as a consequence of monetary policies, aiming at supporting banking systems. It is estimated that the recovery plans of injecting funds into banking sectors as well other sectors of economy on later stages, will result in the growth of the inflation rates in all world economies in Having in mind growing savings tendencies in households as well as in private and public sectors, increasing inflation may have negative consequences on the economies, causing low consumption which will result in decreasing productivity. Investments Despite the slowing economies the investments level remained stable in 2008, what is more it has been showing slightly increasing tendencies, except of Lithuania were the investments slowed down slightly in It is however predicted that the growing inflation rate may cause the investments to be hindered what will result in the slowing GDP growth dynamics. 21

22 Implementation by priority axis Priority axis 1: Economic competitiveness Within Priority axis 1 the most projects were submitted within the measure 1.1 Entrepreneurial development which also amounted for the highest value within this Priority axis, almost to 60% of all applied for this Priority ERDF funds. No projects from Priority axis 1 were approved within the Programme in the reporting period. Graph 7: Value of projects submitted within the Programme for Priority axis 1, mln Euro ERDF Value of projects submitted within the Programme for Priority axis 1, mln Euro ERDF 16% 25% 59% Graph 8: Number of projects submitted within Programme for the Priority axis 1 Number of projects submitted within Programme for the Priority axis Table 6. Achievement of indicators for Priority axis 1 Indicator Total WITH POLITICALLY WELCOMED AND PROMOTED RESULTS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 15 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 CREATING CROSS-BORDER NETWORKS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 22

23 BASED ON FORMAL AGREEMENTS Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 UNLOCKING PUBLIC AND PRIVATE INVESTMENTS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 CONTRIBUTING TO INTENSIFIED CROSS- BORDER RELATIONS BETWEEN SMALL AND MEDIUM SIZE ENTERPRISES IN THE Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 SOUTH BALTIC AREA Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 STRENGTHENING LIAISONS BETWEEN HIGHER EDUCATION AND LABOUR MARKET INSTITUTIONS OF THE SOUTH BALTIC REGIONS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 10 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 CONTRIBUTING TO IMPROVED QUALITY AND INTEROPERABILITY OF TRANSPORT CONNECTIONS AND SERVICES IN THE SOUTH BALTIC AREA Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 5 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 Priority axis 2: Attractiveness and common identity Within Priority axis 2, most of the projects were submitted within the measure 2.4 Local community iniatives 10 projects, strictly followed by measure 2.3 Sustainable use of natural and cultural heritage for regional development 9 projects. Measure 2.3 consumed 44% of all applied for this Priority axis ERDF funds. Measure 2.4, which supports small local initiatives, amounted for around one fourth of applied for the Priority axis ERDF funds. In the reporting period four projects from Priority axis 2 were approved. All projects were approved in measure 2.3 Sustainable use of natural and cultural heritage for regional development. Approved projects amount to 13% of the ERDF funds allocated for Priority Axis 2 and contribute to the achievement of the indicator Number of projects demonstrating more efficient use of natural and cultural heritage of the South Baltic area for regional development on the level of 40% of target value. Universal result indicators: Number of projects creating cross-border networks based on formal agreements amounted to 26,6% of target value Number of projects with politically welcomed and promoted results - 6,67% 23

24 Number of projects unlocking private and public investments 14,28 % Graph 9: Value of projects submitted within the Programme for the Priority axis 2, mln Euro, ERDF Value of projects submitted within the Programme for the Priority axis 2, mln Euro, ERDF 26% 19% 11% % Graph 10: Number of projects submitted within the Programme for the Priority axis 2 Number of projects submitted within the Programme for the Priority axis Table 7. Achievement of indicators for Priority axis 2 Indicator Total WITH POLITICALLY WELCOMED AND PROMOTED RESULTS Achievement 0 2 n/a n/a n/a n/a n/a n/a n/a 2 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 30 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 CREATING CROSS-BORDER NETWORKS BASED ON FORMAL AGREEMENTS Achievement 0 4 n/a n/a n/a n/a n/a n/a n/a 4 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 15 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 24

25 UNLOCKING PUBLIC AND PRIVATE INVESTMENTS Achievement 0 1 n/a n/a n/a n/a n/a n/a n/a 1 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 7 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 IMPROVING INSTITUTIONAL CAPACITY IN THE MANAGEMENT OF THE BALTIC SEA ENVIRONMENT Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 10 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 INCREASING COMMITMENT TO RENEWABLE ENERGY SOURCES AND ENERGY SAVING PATTERNS Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 4 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 DEMONSTRATING MORE EFFICIENT USE OF NATURAL AND CULTURAL HERITAGE OF THE SOUTH Achievement 0 4 n/a n/a n/a n/a n/a n/a n/a 4 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 10 BALTIC AREA FOR REGIONAL DEVELOPMENT Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 INTENSIFYING INTERCULTURAL DIALOGUE AND BETTER INVOLVING BROADER PUBLIC IN CROSS-BORDER ACTIVITIES Achievement 0 0 n/a n/a n/a n/a n/a n/a n/a 0 Target n/a n/a n/a n/a n/a n/a n/a n/a n/a At least 20 Baseline n/a n/a n/a n/a n/a n/a n/a n/a n/a 0 IV. COHERENCE WITH COMMUNITY POLICIES AND OBJECTIVES, NATIONAL POLICIES, OTHER PROGRAMMES. Coherence with Community policies and objectives The Programme is consistent with the provisions of the General Regulation. The thematic scope of the Programme derives from the description of cross-border co-operation areas of intervention according to the Art. 6 of the ERDF Regulation. 25

26 The Programme goal, strategy, priorities and indicative actions are in line with the Community Strategic Guidelines on Cohesion adopted by the Council decision of 6 October 2006 (2006/702/EC) in scope of territorial dimension of the Cohesion policy. The Programme follows the guidance as it contributes to strengthening the competitiveness of the border regions, especially it contributes to economic and social integration where there are wide economic disparities on either side. The Programme includes and promotes the principle of the sustainable development, required by the EU Treaty in all European policies, so that they contribute in an integrated way to meeting economic, environmental and social objectives. With respect to the above the Programme especially promotes environmental assets in the South Baltic area. Compliance with sustainable development principle is verified during the project selection procedure. Growth and Job strategy The Programme is also in line with the renewed Lisbon strategy and the Gothenburg strategy. Activities to be supported within the Programme correspond directly to both the development goals contained in the renewed Lisbon agenda and with the sustainable development principles laid down in the Gothenburg strategy. Especially, Priority axis 1 focuses on promotion of economic competitiveness, transfer of knowledge and integration of labour markets, while Priority axis 2 promotes sustainable development and aims at increasing attractiveness of the cross-border area with respect to environment protection requirements. Compliance with growth and job strategy is verified during the project selection procedure. Environment The Programme complies with the Community regulations on environment protection and improvements in the natural environment. This relates to the fulfillment of the obligations set out in the Habitats Directive 92/43/EC, the Birds Directive 79/409/EC and directives concerning the European network of protected areas NATURA In accordance with Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment the Programme has been subject to Strategic Environmental Assessment. Compliance with growth and job strategy is verified during the project selection procedure. Equal opportunities Equal opportunities principle deriving from the General Regulation shall guarantee that no discrimination on the basis of gender, race or ethnic origin, religion or belief, disability, age or sexual orientation will take place. Equal opportunities principle will be adopted for all policies and practices supported by the Programme at various stages of Programme implementation. Compliance with equal opportunities principle is verified during the project selection procedure. In particular, the beneficiaries of the projects should ensure that equal 26

27 opportunities principle will be respected and promoted during the implementation of the project. Competition The Programme ensures that operations financed within the Programme will be in conformity with the provisions of the Treaty, with instruments adopted under it and with Community policies and actions in the field of competition. Compliance with competition policy is verified during the project selection procedure. Information society development The Programme includes activities aimed at developing the information society in line with the strategic framework contained in the initiative i2010 A European Information Society. Compliance with information society development rule is verified during the project selection procedure. Growth and job strategy, environmental impact, equal opportunities (including competition) policies and information society development are adopted for all policies and practices supported by the Programme at various stages of Programme implementation. Moreover they will also be incorporated into project selection procedure and reflected in the Application Form. Furthermore, the Programme is consistent with the European Social Policy Agenda adopted in 2000 and set up in the Communication from the Commission COM (2000) 379 on integrated European approach towards achieving the economic and social renewal of the Lisbon agenda. The Programme corresponds also to the European Spatial Development Perspective and follows-up on the ESPON Programme by addressing such issues as: urban and rural growth, innovation capacity, accessibility and territorial competitiveness. Coherence with National Strategic Reference Frameworks and with national Programmes and initiatives. The Programme adheres to the national programmes defined in the National Strategic Reference Frameworks (NSRF)/National Development Strategies presented by the Member States in the South Baltic area according to Art. 27 of the General Regulation. The Programme refers to national policies and priorities and by its strategy contributes to the fulfilment of its goals in the cross-border context. The projects implemented under the Programme will complement the activities carried out under other operational programmes, both at the national and regional levels. POLAND The Programme is in line with the strategic goal of Poland s National Strategic Reference Framework in support of growth and jobs. National Cohesion Strategy, 27

28 which consists in creating an environment for improving the competitiveness of knowledgebased economy and entrepreneurship to ensure higher employment, and in increasing social, economic and spatial cohesion. Also following horizontal goals will be supported within the strategy: - improved functioning standard of public institutions and development of partnership mechanisms, - improved quality of human capital and enhancement of social cohesion, - development and modernisation of technical and social infrastructure of fundamental importance for growth of the competitiveness in Poland, - improvement of competitiveness and innovativeness of enterprises, including especially of the production sector with high added value and service sector development, - increase of competitiveness of Polish regions and counteracting their social, economic and spatial marginalisation, - balancing development opportunities and supporting structural changes in rural areas. Its goals will be implemented by operational programmes, managed by the Ministry of Regional Development of Poland, regional operational programmes managed by boards of particular Voivodeships and through operations co-financed by structural funds: Operational Programme Infrastructure and Environment the programme's objective is to improve the country's investment attractiveness through the development of infrastructure. At the same moment the programme s goal is protection of the environment, enhancement of the cultural and territorial cohesion; Operational Programme Innovative Economy - programme is aimed to contribute to improvement of the intervention cohesion. It allows for adjusting the offer of the science sector to the needs of enterprises, particularly small and medium sized (SMEs) and contributes to an increased transfer of modern solutions from the science sector to the economy - ; Operational Programme Human Capital the aim of the programme is to allow full deployment of human resources through an increase in employment and of adaptation potential of enterprises and their personnel, improving the educational level of the society, reducing areas of social exclusion and support for establishment of administrative structures of the state. Within the programme support would be provided to the following areas: employment, education, social integration, development of the adaptation potential of employees and enterprises, as well as issues related to development of human resources on rural areas, with creation of efficient and effective public administration of all levels as well as health promotion of human resources; Operational Programme Development of Eastern Poland the aim of the programme is to impede stagnation trends that lead to marginalisation and peripheral rank of Eastern Poland voivodships, and moreover to stimulate economic growth in those voivodships; Operational Programme Technical Assistance the aim of the programme is to guarantee the efficient implementation of the Strategic Reference Framework ; European Territorial Co-operation Programmes the aim of the programmes is to enhance the cross-border, transnational and interregional co-operation, to enhance territorial the cohesion, to support the territorial development. 28