PROGRAM COMPLEMENT INTERREG III A / PHARE CBC GREECE - BOULGARIA
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1 PROGRAM COMPLEMENT INTERREG III A / PHARE CBC GREECE - BOULGARIA CO FUNDING: EUROPEAN UNION EUROPEAN REGIONAL DEVELOPMENT FUND PHARE CBC HELLENIC REPUBLIC MINISTRY OF ECONOMY AND FINANCE 1
2 PROGRAMME SUMMARY/BRIEF PRESENTATION 1.1. General The Operational Programme INTERREG IIIA PHARE CBC Greece Bulgaria was approved by the European Union on 27/12/2001, pursuant to decision No. E(2001) 4076/ of the European Commission. The total funds of the joint Programme amount to 419,805,496 of which 268,655,496 concern the Greek INTERREG III A programme and 151,150,000 the Bulgarian PHARE CBC programme. These amounts include funds of 5,436,000 provided by the European Commission, pursuant to its decision No. C(2002)1703/ of 25/7/2002, as a special assistance to regions bordering with candidate countries. The eligible Programme implementation regions are as follows: For Greece: The Regions of Eastern Macedonia - Thrace (Prefectures of Drama, Kavala, Xanthi, Rhodope and Evros) and Central Macedonia (Prefectures of Thessaloniki and Serres). For Bulgaria: The districts of: Blagoevgrad, Smolian, Kardjali, Khaskovo 1.2. Objectives, Strategy, Priority Axes The development strategy for the cross-border region has considered the advantages and disadvantages of the eligible regions on both sides of the border and concluded that there is a need to consider the following factors in determining the Programme s objectives: The physical peculiarities of the region (massifs, particular climatic conditions), which make contact between the regions difficult on either side of the border. 2
3 The assumption that the strengthening of the economies of the eligible cross-border region will help prevent their likely marginalisation and abandonment and will contribute to their integration within their national territories and the single European space under formation. The need to protect and make good use of the natural and cultural environment of the area in order to enhance the quality of life directly or indirectly (by contributing to the economic growth). On the basis of the above, the general objective of the Programme is defined as: The region s development into a centre and focal point for peace, sustainable development and expansion of the European Economic Area in the hinterland of the Balkans, the Black Sea zone and the Eastern Mediterranean Sea. Based on the above objective, the operational aim of the Programme is: The enhancement of the economic and social cohesion, as well as the competitiveness of the eligible cross-border region. In particular, the specific objectives, which will implement the strategy and will lead to the attainment of the general objective, are as follows: 1. To lift the geographic isolation and the communication barriers of the region 2. To enable the economic development of the region and promote employment 3. To enable the functional upgrade of the region in order to address the social, cultural and environmental impact of the current socio-economic changes. 3
4 The above three specific objectives are to be implemented through interventions coming under 5 Priority Axes and10 Measures. A. Strengthening of cross-border infrastructures B. Supporting economic growth and promoting employment C. Improving the quality of life in combination with the enhancement of health services, the protection of the environment and the promotion of cultural and tourist resources. D. Special aid for areas bordering with candidate countries E. Technical Assistance PRIORITY AXIS 1. Transport Infrastructures 2. Economic Development and Employment Measures 1.1. Transport Infrastructures 1.2. Improving the security of the external borders 2.1. Strengthening of entrepreneurial activities 2.3. Cooperation between Education and Research Institutes 3.1. Improving the Quality of Life 3. Quality of Life / Environment / Culture 4. Special aid for areas bordering with candidate countries 5. Technical Assistance 3.2. Protection, promotion and management of the natural environment 3.3. Development and promotion of cultural and tourist resources 4.1. Community Action to support Transport Infrastructures 5.1. Programme Management 5.2. Technical Assistance 4
5 In achieving the objectives and implementation of the Programme, emphasis will be given to the following: Types of actions giving a comparative advantage to the eligible region Synergy and complementarity among actions of the Programme and also with other current Programmes (ROP, Sectoral programmes, Initiatives) Full consideration of the urban and rural space, which requires effective integrated interventions Promotion of innovative actions Enhancement of human resources Preservation and utilisation of the natural resources in line with the principle of sustainability Harmonisation with Community Regulations. The development strategy of the INTERREG III PHARE CBC Greece Bulgaria programme is consistent with the Development Plan for Greece and the Bulgarian Economic Development Plan. Also, the programme strategy is in line with Community Policies on competitiveness, employment, equality and the environment. 5
6 TECHNICAL FICHE FOR MEASURE 1.1 TRANSPORT INFRASTRUCTURES A. DETAILS OF THE MEASURE MIS CODE 3 INTERREG III OPERATIONAL PROGRAMME PHARE INTERREG IIIA GREECE - BULGARIA PHARE-CBC 1 PRIORITY AXIS CROSS-BORDER INFRASTRUCTURES 1 MEASURE TRANSPORT INFRASTRUCTURES IMPLEMENTATION AREAS Eligible prefectures of: Thessaloniki, Serres, Drama, Kavala, Xanthi, Rhodope and Evros. Eligible districts of: Blagoevgrad, Smolyan, Kardjali, Khaskovo DIRECT BENEFICIARIES IMPLEMENTATION PERIOD FIELD/S OF INTERVENTION 311 Railways (8.5%) 313 Motorways (91.5%) Residents and workforce of the above regions Long-term planning, Annual approval, n+2 application 6
7 FINANCIAL INFORMATION AMOUNT SHARE IN SHARE IN PRIORITY AXIS MEASURE S PE % of TC % of PE IN EURO SHARE IN OPERATIONAL PROGRAMME % of TC PE % Total Cost (TC) ,80% 51,15% Public Expenditure (PE) Community Contribution (ERDF) National Public Contribution Private Contribution Bank financing ,80% 88,80% 51,15% 55,38% ,0% 66,60% 66,60% 38,36% 41,54% ,0% 22,20% 22,20% 12,79% 13,85% 0 0,0% 0,0% 0 0,0% 0,0% 7
8 B. GENERAL MEASURE OBJECTIVE AND STRATEGY FOR ITS ATTAINMENT - ACTION CATEGORIES - EXPECTED RESULTS - INDICATORS B1. OVERVIEW OF EXISTING SITUATION In the context of the GREECE BULGARIA programme, the position of the eligible region is of strategic importance as a node for transcontinental transport, energy and communications networks, being at the intersection of the North-South trans- European axes (vertical links of Egnatia HWY with Bulgaria) in the international infrastructure networks under establishment. Notwithstanding the interventions which have taken place, the condition of the transport infrastructures existing between Greece and Bulgaria, is considered as non satisfactory. Road network and railroad network deficiencies and problems are still a factor inhibiting the integrated development of the cross-border region. Therefore, improvement of access through the borders and the integration of cross-border infrastructures and intersections (is) becomes the first priority as regards the crossborder cooperation between the two countries and makes it imperative (necessitates the need) to implement projects aiming at improving transport infrastructures and promoting the region as a significant transport intersection. B2. SPECIFICATION AND DETAILED DESCRIPTION OF THE CONTENT OF THE MEASURE, ITS AIMS, AND ANALYSIS OF ITS RELEVANCE TO THE PRIORITY AXIS IT COMES UNDER The Measure involves improvements to the already existing road links in the eligible areas of the cross-border cooperation (partnership), and upgrading of railroad infrastructures. Interventions to be implemented in this context concern the completion of linking segments with the Trans-European Transport Networks (Trans- European Private Car Corridor and the Trans-European Axis [E10, E79]), in order to improve the axes connected with the existing or foreseen border stations and open new ways. In the area of railroad infrastructures, interventions will be implemented to modernise and upgrade the railroad network linking the cross-border region to major transport axes. 8
9 The aim of the Measure is: To eliminate the isolation of the cross-border region and promote the region as a major transport node in the Balkans To improve access to the main Trans-European transport networks for the movement of people and goods To improve and upgrade railroad infrastructures in order to facilitate travel on either side of the border Interventions under this Measure are directly linked to the 1 st special objective of the Programme concerning the elimination of the geographical isolation and communication barriers of the cross-border region and its promotion into a nodal point at a Balkan and European level. B3. RANKING MEASURE NEEDS AND PRIORITIES, AND CONTRIBUTION TO THE ATTAINMENT OF THE OBJECTIVES OF THE MEASURE Interventions under this Measure focus primarily on upgrading road infrastructures and secondarily on improving/modernising railroad infrastructures. Therefore, the objectives of Measure 1.1 will be attained in accordance to the following priorities: 1. Completion of selected road infrastructures linking the regions on either side of the border in the eligible region 2. Completion of selected road infrastructures linking up with major transport axes and ports 3. Completion of selected interventions that aim at improving / upgrading the rail network B4. DESCRIPTION OF ACTION CATEGORIES AND INDICATIVE ACTIONS ANTICIPATED In the framework of this Measure, the following indicative categories of actions will be implemented: 1. Road construction projects Studies 9
10 Cutting new roads Construction of interchanges Construction of tunnels Improvements to existing road alignments Bypasses Widenings Construction of bridges New alignment constructions 2. Railroad projects Studies Improving and upgrading existing lines ELIGIBLE EXPENDITURE INTERREG III A (ERDF) Eligible expenditures are determined on the basis of Regulations: 1260/99, 1685/00, 438/01 PHARE CBC Expenses related to project materials Running expenses Planning expenses Investment costs related to the projects (construction, infrastructure, study, machinery, computerisation equipment) Technical and financial feasibility study expenses 10
11 B5. LEVEL OF ASSISTANCE INTERREG III A (ERDF) The level of assistance corresponds to 100% of the eligible cost. PHARE CBC Financing of independent projects under PHARE CBC amounts to 2 5 M. In respect of minor projects or measures (PHARE CBC contribution is set to 2-5 M ), deductions can be made on an individual basis and only following an assessment by the Commission. All projects financed by PHARE CBC must be co-funded by at least 25% of the total project costs from national funds. B6. QUANTIFICATION OF MEASURE S OBJECTIVES - OUTPUT INDICATORS - EXPECTED RESULTS - IMPACTS Foreseen indicators are indicative and, depending on the projects to be implemented, there may be changes in the course of programme implementation. Output Indicators BASELINE VALUE TARGET 2008 Length of road network - improvements (kms) Length of road network - new alignment (kms) Length of railroad network improvements (kms) 0 46,9 16,9 0 20,7 11
12 Result Indicators Reduced travel time (railway network) (in minutes) 22,5 Reduced by 6' Reduced travel time (road network) (in minutes) 91,8 Reduced by 25.6' Risk reduction Reduced by 50% Number of jobs created during project implementation (equivalent annual full-time positions) 337 Impact Indicators New jobs created 0 Comments on indicator estimates 1. Reduction of travel time (road network) The measure foresees the construction/improvement of kms of a road network in the wider programme implementation area. According to the opinion of the technical services of the two regions, once improvements to specific road axes are completed, the average running speed will be increased from the current 65 kms/hr, to 80 kms/hr for all road axes except the Petritsi-Promoachon Customs road axis, where the average running speed will be increased to 100 kms/hr. The increase of the average running speed, assuming a steady road length of kms, will lead to reduced travel time. The reduction of travel time is equal to the difference between the travel times before and after the completion of the project. Travel time is estimated from the length of the Operationally Self-Sufficient Segments divided by the operational speed. Based on the 12
13 above, the time required, before improvements are made to the road network, for all projects proposed under the programme, amounts to 91.8 min, while after improvements are finalised, it is estimated that the required time over the same distance will be approx. 66 min. In other words, the total travel time reduction amounts to 25.6 min, representing a reduction in travel time in the order of 28%. 2. Risk factor The proposed intervention will upgrade the geometrical features of the vehicular sections, as well as the quality of the pavement related to the slipperiness and the use of brakes. Despite the increase of the vehicles operational speed, due to the upgraded operational features of the vehicular sections, accidents indicators will be positively influenced as local and international experience shows. The absence of statistical data does not allow the quantitative estimate of the above mentioned improvement through the comparison of the number and nature of accidents before and after. Therefore, appropriate indicators that will describe efficiently the level of vehicular risk according to the nature of the road will be drawn from international bibliography. According to the above mentioned indicators, the rate for normal country roads is 1, for highways (the kind of old national road) 0, 8 and for motorways 0, 4. Therefore, it is estimated that the risk factor reduction will amount to 50% at least. C. FINANCING PLAN The Financial Table of Measure 1.1 is shaped as follows: MEASURE 1.1 TOTAL COST ,00 PUBLIC EXPENDITURE ,00 NATIONAL CONTRIBUTION ,00 STATE CONTRIBUTION ,00 OTHERS 0 EU CONTRIBUTION ,00 PRIVATE PARTICIPATION 0,00 The Financial Table of Priority Axis 1 per year and measure is provided in a separate chapter in the Annex to the present document. 13
14 D. IMPLEMENTATION INTERREG III A (ERDF) Implementation of the Measure entails the following implementation stages: The Technical Secretariats, in conjunction with the Managing Authority of the Programme, will update the anticipated categories of Final Beneficiaries of the Measure and will inform them about the possibility of project funding. Information will include the kind of actions that can be proposed for selection under the Measure, the manner (by making available standard forms) and the requirements that must be met by submitted proposals, as well as procedures for their evaluation, in accordance with the Guidelines for INTERREG III, Programme Implementation Provisions and the selection criteria applicable to the Measure. Applications for selection are submitted by Final Beneficiaries to the Technical Secretariat of the respective Region, together with the Project Technical Fiche under the CSF III, incorporating all Subproject Technical Fiches using the Ministry of Economy s MIS codification (MIS/ERGORAMA). Completeness of submitted proposal dossiers is checked by the respective PHARE CBC Major Projects (> 2M EURO) Programming cycle initiation by the National Aid Coordinator in conjunction with the Ministry of Regional Development and Public Works Following initiation, the Ministry of Regional Development and Public Works (MRDPW) will contact Potential Contractors in order to determine project proposals MRDPW will consider submitted proposals based on the priorities laid down in the Joint Programme Document and the maturity of the projects Organising joint Bulgarian- Greek meetings to determine likely projects Submission of proposals to the Bulgarian unit of the PHARE CBC Steering Committee for approval Submission of project final dossier to the EU by the National Aid Coordinator for final approval Final selection and approval of proposed projects by the Joint 14
15 Technical Secretariat and forwarded to the Managing Authority of the Programme, together with comments. Proposals are assessed by the Managing Authority of the Programme, based on action selection criteria and submitted to the Joint Greek-Bulgarian Steering Committee for approval. A decision is made by the Managing Authority of the Programme concerning the selection and financing of a project which is included in Collective Project Decisions/ Public Investments Programme. Steering Committee Drafting of a financing proposal by the EU Approval of financing proposal by the Managing Authority of PHARE CBC Drawing up and signing of the Financing Memorandum. E. FINAL BENEFICIARIES INTERREG III A (ERDF) Region of Eastern Macedonia - Thrace Region of Central Macedonia Hellenic Railway Organisation (OSE) Ministry of Environment, Physical Planning and Public Works The prefectures of Thessalonica, Evros, Rhodope, Xanthi, Kavala, Drama, Serres. EGNATIA SA PHARE CBC Ministry of Development and Public Works National Roads Organisation National Railways Railways Infrastructure Ministry of Transport and Communications Municipalities in the CBC region 15
16 F. GENERAL EVALUATION AND PROJECT SELECTION CRITERIA INTERREG III A (ERDF) PHARE CBC As regards the interventions to be selected under Measure 1.1, their cross-border character should be initially demonstrated after considering the following principles: 1. To have been mutually designed and agreed upon, be implemented on both sides of the border and benefit the population on both sides of the border. 2. To have been agreed upon by both sides and, although geographically situated on one side of the border, bring significant benefits to the population living on both sides. 3. Projects cannot be included in the Operational Programme if they have been decided by one side only, are geographically located on one side of the border only, and bring no obvious benefits to the population on the other side of the border. They will then be evaluated on the basis of the following criteria categories: A. Nature and type of action under the measure Proposed project compatibility with eligibility conditions laid down by the Structural Fund and PHARE CBC Regulations and compliance of the proposed project anticipated expenditure with eligibility Regulations 1685/2000, 2760/1998 and 1266/99 Proposed project compatibility with the specific project categories and objectives of the Measure Proposed project Final Beneficiary comes under the Final Beneficiary categories of Measure, in accordance with the Project Complement Making sure that the project implementation period falls within the eligibility period for the Measure. B. Compatibility of action with National and Community policies Final Beneficiary undertakes to observe national and community regulations concerning Procurement of Government Projects and Services Required decisions of collective bodies 16
17 Compliance with or undertaking by Final Beneficiary to comply with the community regulations and the national legislation on the environment. Relevance and consistency with the national and European strategy of employment Relevance and consistency with other community policies Complementarity with other financing instruments or other community programmes C. Completeness of the action Completeness of content of the proposed project vis-à-vis the Measure s objectives (an integrated physical project from a technical perspective) Project can stand alone or in conjunction with another project being implemented or which has already been implemented. Proposal completeness and clarity D. Maturity of the Action Existence of the required institutional framework for project implementation. Sufficient progress in required licensing and studies Competence of Final Beneficiary to monitor, control and manage smoothly the implementation of project from the point of view of availability of appropriate technical means, know-how and staffing E. Advisability (financial viability and social benefit) for the project Criticalness of problem being addressed by the proposal Positive impact on the natural environment Special criteria on socio-economic impact depending on project categories. F. Special criteria Project budget is realistic vis-à-vis its Physical Progress Project completion schedule is realistic 17
18 G. STATE ASSISTANCE INTERREG III A (ERDF) PHARE CBC The Measure does not come under a state assistance regime. 18
19 TECHNICAL FICHE FOR MEASURE 1.2 IMPROVING THE SECURITY OF THE EXTERNAL BORDERS A. DETAILS OF THE MEASURE MIS CODE 3 INTERREG III PHARE OPERATIONAL PROGRAMME INTERREG IIIA GREECE - BULGARIA PHARE-CBC 1 PRIORITY AXIS CROSS-BORDER INFRASTRUCTURES 2 MEASURE IMPROVING THE SECURITY OF THE EXTERNAL BORDERS IMPLEMENTATION AREAS Eligible Prefectures of: Thessaloniki, Serres, Drama, Kavala, Xanthi, Rhodope and Evros. Eligible districts of: Blagoevgrad, Smolyan, Kardjali, Khaskovo DIRECT BENEFICIARIES The residents of the eligible cross-border prefectures on either side of the border. Those involved in cross-border transit and the tourists. IMPLEMENTATION PERIOD Long-term planning, Annual approval, n+2 application FIELD/S OF INTERVENTION 320 Border Stations (55%) 322 Information and Communications Technology, including measures concerning safety and safe transmission (45%) 19
20 FINANCIAL INFORMATION IN EURO AMOUNT SHARE IN SHARE IN OPERATIONAL MEASURE S SHARE IN PRIORITY AXIS PROGRAMME PE TC % PE % TC % PE % Total Cost (TC) 17,328, % 6.45% Public Expenditure (PE) 17,328, % 11.20% 6.45% 6.98% Community Contribution (ERDF) 12,995, % 8.40% 8.40% 4.84% 5.24% National Public Contribution 4,332, % 2.80% 2.80% 1.61% 1.75% Private Contribution 0 0.0% 0.0% Bank financing 0 0.0% 0.0% 20
21 B. GENERAL MEASURE OBJECTIVE AND STRATEGY FOR ITS ATTAINMENT - ACTION CATEGORIES - EXPECTED RESULTS - INDICATORS B1. OVERVIEW OF EXISTING SITUATION Measure 1.2 includes actions to improve and upgrade monitoring systems and administrative procedures, which will help address problems inhibiting the development of the cross-border region due to illegal activities, so that borders may function as gates of contact for the free movement of people and goods. In this context, it is foreseen to construct new border stations, to improve existing border stations, to modernise the equipment of the relevant cross-border police and customs services and to create cooperation networks for the safe movement of people and goods. In the medium term, cooperation between the border stations of both countries will help minimise border crossing time and the administrative procedures required in crossing. In the medium-term, the upgrading of Border Station infrastructures, in combination with the upgrading of the cross-border transport node infrastructures, will help the convergence of the area with the broader European scene and its development into an important Balkan pole. Interventions under Measure 1.2 come under the proposed actions of the first priority, as implemented under Axis 1. The establishment of safety conditions and fast administrative procedures are necessary in order to enhance the socio-economic cohesion and competitiveness of the cross-border region, a fact that will lead to the elimination of isolation on either side of the border and also to the inclusion of the region in the European integration. B2. SPECIFICATION AND DETAILED DESCRIPTION OF THE CONTENT OF THE MEASURE, ITS AIMS, AND ANALYSIS OF ITS RELEVANCE TO THE PRIORITY AXIS IT COMES UNDER The aim of the Measure is: 21
22 To improve safety conditions for the people in the region and for all those using the region as an entry-exit point for the movement of people and goods. To address phenomena of illegal migration, smuggling and illegal activities inhibiting the development of the eligible region. Interventions under the Measure are directly linked with the 1 st specific objective of the Programme that concerns the elimination of the geographical isolation and addresses communication barriers within the cross-border region and its promotion into a nodal point at a Balkan and European level. B3. RANKING MEASURE NEEDS AND PRIORITIES, AND CONTRIBUTION TO THE ATTAINMENT OF THE OBJECTIVES OF THE MEASURE Therefore, the objectives of Measure 1.2 will be achieved according to the following priorities: Improving procedures in respect of the coordination, conditions and cooperation between border police and customs offices on both sides. Procurement of equipment for the competent police and customs offices Development of cooperation networks to combat offences and facilitate the safe transport of people and goods. Construction of new and improvement of existing border stations Minimising the time required to cross the border B4. DESCRIPTION OF ACTION CATEGORIES AND INDICATIVE ACTIONS ANTICIPATED 1. Procurement of equipment It is envisaged to procure equipment relating to border station safety and control systems (e.g. mobile devices, forged document detection devices, parcel and luggage check devices, devices for the detections of objects in vehicles etc). 2. Construction of new border stations and improvements to existing border stations 22
23 Construction of integrated infrastructures of new border stations and improvements to existing ones, including major and secondary building facilities, shelters, landscaping of surrounding and parking areas. 3. Development of cooperation networks It is envisaged to develop shared security and control systems and train staff of said services on both sides, on related matters. ELIGIBLE EXPENDITURE INTERREG III A (ERDF) Eligible expenditures are determined on the basis of Regulations: 1260/99, 1685/00, 438/01 PHARE CBC Expenses related to project materials Operating expenses Planning expenses Investment costs associated with the projects (construction, infrastructure, study, machinery, computerisation equipment) Training costs Technical and financial feasibility study expenses B5. LEVEL OF ASSISTANCE The level of assistance corresponds to 100% of the eligible cost. Financing of independent projects under PHARE CBC amounts to 2 5 M. In respect of minor projects or measures (PHARE CBC contribution is set to 2-5 M ), deductions can be made on an individual basis and only following an 23
24 assessment by the Commission. All projects financed by PHARE CBC must be co-funded by at least 25% of the total project costs from national funds. B6. QUANTIFICATION OF MEASURE S OBJECTIVES - OUTPUT INDICATORS - EXPECTED RESULTS - IMPACTS Envisaged indicators are indicative and, depending on the projects to be implemented, there may be changes in the course of programme implementation. Output Indicators BASELINE VALUE TARGET 2008 Border Stations equipped (number) Border Stations constructed or upgraded (number) 3 2 Result Indicators Number of jobs created during project implementation (equivalent annual full-time positions) Reduced general inspection time of a passing through, loaded truck (hours) 117 4,5 Impact Indicators New jobs created 5 24
25 C. FINANCING PLAN The Financial Table of Measure 1.2 is shaped as follows: MEASURE 1.2 PLUS COST PUBLIC EXPENDITURE NATIONAL CONTRIBUTION 4,332,663 17,328,003 17,328,003 STATE CONTRIBUTION 4,332,663 OTHERS 0 EU CONTRIBUTION 12,995, PRIVATE PARTICIPATION 0.00 The Financial Table of Priority Axis 1 per year and measure is provided in a separate chapter in the Annex to the present document. D. IMPLEMENTATION INTERREG III A (ERDF) Implementation of the Measure entails the following implementation stages: The Technical Secretariats, in conjunction with the Managing Authority of the Programme, will update the anticipated categories of Final Beneficiaries of the Measure and will inform them about possibility of funding. Information will include the kind of actions that can be proposed PHARE CBC Major Projects (> 2M EURO) Programming cycle initiation by the National Aid Coordinator in conjunction with the Ministry of Regional Development and Public Works Following initiation, the Ministry of Regional Development and Public Works (MRDPW) will contact Potential Contractors in order to determine project proposals 25
26 for selection under the Measure, the manner (by making available standard forms) and the requirements that must be met by submitted proposals, as well as procedures for their evaluation, in accordance with the Guidelines for INTERREG III, Programme Implementation Provisions and the selection criteria applicable to the Measure. Applications for selection are submitted by Final Beneficiaries to the Technical Secretariat of the respective Region, together with the Project Technical Fiche under the CSF III, incorporating all Subproject Technical Fiches using the Ministry of Economy s MIS codification (MIS/ERGORAMA). Completeness of submitted proposal dossiers is checked by the respective Technical Secretariat and dossier is forwarded to the Managing Authority of the Programme, together with comments. MRDPW will consider submitted proposals based on the priorities laid down in the Joint Programme Document and the maturity of the projects Organising joint Bulgarian-Greek meetings to determine likely projects Submission of proposals to the Bulgarian unit of the PHARE CBC Steering Committee for approval Submission of project final dossier to the EU by the National Aid Coordinator for final approval Final selection and approval of proposed projects by the Joint Steering Committee Drafting of a financing proposal by the EU Approval of financing proposal by the Managing Authority of PHARE CBC Drawing up and Signing of the Financing Memorandum. Proposals are assessed by the Managing Authority of the Programme, based on action selection criteria and submitted to the Joint Greek-Bulgarian 26
27 Steering Committee for approval. A decision is made by the Managing Authority of the Programme concerning the selection and financing of a project and project is included in Collective Project Decisions/ Public Projects Programme. E. FINAL BENEFICIARIES INTERREG III A (ERDF) Region of Eastern Macedonia - Thrace Region of Central Macedonia Ministry of Public Order Ministry of Economy and Finance The prefectures of Thessalonica, Evros, Rhodope, Xanthi, Kavala, Drama, Serres. PHARE CBC Department of the Interior Border Police Station Ministry of Economy Customs Directorate Ministry of Development and Public Works Foreign Affairs Ministry Roads Organisation F. GENERAL EVALUATION AND PROJECT SELECTION CRITERIA INTERREG III A (ERDF) PHARE CBC As regards the interventions to be selected under Measure 1.2, their crossborder character should be initially demonstrated after considering the following principles: 1. That they have been mutually agreed upon and benefit the population 27
28 on both sides of the border 2. That they have been agreed upon by both sides and, although implemented on one side of the border, they brings significant benefits to the population of both sides. 3. Projects cannot be included in the Operational Programme if they have been decided by one side only, are geographically located on one side of the border only, and bring no obvious benefits to the population on the other side of the border. They will then be evaluated on the basis of the following criteria categories: A. Nature and type of action in the framework of the measure Proposed project compatibility with eligibility conditions laid down by the Structural Fund and PHARE CBC Regulations and compliance of the proposed project anticipated expenditure with eligibility Regulations 1685/2000, 2760/1998 and 1266/99 Proposed project compatibility with the specific project categories and objectives of the Measure Proposed project Final Beneficiary comes under the Final Beneficiary categories of Measure, in accordance with the Project Complement Making sure that the project implementation period falls within the eligibility period for the Measure. B. Compatibility of action with National and Community policies Final Beneficiary undertakes to observe national and community regulations concerning Procurement of Government Projects and Services Required decision of competent body Compliance with or undertaking by Final Beneficiary to comply with the community regulations and the national legislation on the environment. Relevance and consistency with the national and European strategy of employment Relevance and consistency with other community policies Complementarity with other financing instruments or other community programmes 28
29 C. Completeness of the action Completeness of content of proposed project vis-à-vis Measure s objectives (an integrated physical project from a technical perspective) Project can stand alone or in conjunction with another project being implemented or which has already been implemented. Proposal completeness and clarity D. Maturity of the Action Existence of the required institutional framework for project implementation. Sufficient progress in required licensing and studies Competence of Final Beneficiary to monitor, control and manage smoothly the implementation of project from the point of view of availability of appropriate technical means, know-how and staffing Competence of the Implementation Body to monitor, control and manage smoothly the implementation of project from the point of view of availability of appropriate technical means, know-how and staffing Adequacy of project Overseeing body to monitor, control and manage smoothly the implementation of all subprojects in terms of the availability of suitable technical means, know-how and staffing. E. Advisability (financial viability and social benefit) for the project Criticalness of problem being addressed by the proposal Positive impact on the natural environment Special criteria on socio-economic impact depending on project categories. F. Special criteria Project budget realistic vis-à-vis its physical object Project completion schedule is realistic 29
30 G. STATE ASSISTANCE INTERREG III A (ERDF) PHARE CBC The Measure does not come under a state assistance regime. 30
31 TECHNICAL FICHE FOR MEASURE 2.1 STRENGTHENING OF ENTREPRENEURIAL ACTIVITY AND DEVELOPMENT OF HUMAN RESOURCES A. DETAILS OF THE MEASURE MIS CODE 3 INTERREG III PHARE OPERATIONAL PROGRAMME INTERREG III A / GREECE - BULGARIA PHARE-CBC 2 PRIORITY AXIS ECONOMIC GROWTH AND PROMOTION OF EMPLOYMENT 1 MEASURE IMPLEMENTATION AREAS DIRECT BENEFICIARIES STRENGTHENING OF ENTREPRENEURIAL ACTIVITY AND DEVELOPMENT OF HUMAN RESOURCES Eligible Prefectures of: Thessaloniki, Serres, Eligible districts of: Drama, Kavala, Xanthi, Rhodope and Blagoevgrad, Smolian, Kardjali, Evros. Khaskovo Residents and labour force in the aforesaid regions IMPLEMENTATION PERIOD Multiyear planning, annual approval, application of n+2 FIELD/S OF INTERVENTION # 164 Shared out business services (business types, incubators, incentives, promotion services, networking, conferences, trade exhibitions) (20%) 162 Environment-friendly technologies, clean energy saving technologies (5%) 173 Shared out services in the area of tourism (including promotional, networking and trade fair activities) (30%) 31
32 171 Tangible investments Tourist accommodation, hostels and facilities (15%) PROGRAM COMPLEMENT INTERREG III A - PHARE CBC GREECE ΒULGARIA 23 Development of educational and vocational training not associated with a particular area (30%) 32
33 FINANCIAL INFORMATION Total Cost (TC) Public Expenditure (PE) Community Contribution (ERDF) National Public Contribution Private Contribution Borrowings Amount Share of Share of the Priority Axis the Measure s PE % of TC % of PE IN EURO Share of the Operational Programme % of TC ,77% 17,87% % of PE ,97% 85,01% 11,54% 12,50% % 43,48% 63,75% 8,66% 9,37% % 14,49% 21,25% 2,89% 3,12% ,80% 6,33% 0 0,0% 0,0% 33
34 B. GENERAL MEASURE OBJECTIVE AND STRATEGY FOR ITS ATTAINMENT - ACTION CATEGORIES - EXPECTED RESULTS - INDICATORS B1 OVERVIEW OF EXISTING SITUATION In the context of the INTERREG IIIA PHARE CBC GREECE BULGARIA programme, the production structure in the eligible region is marked by some significant characteristics and potential, on the basis of which it is possible to plan cross-border cooperation in the region for the new programming period. These characteristics are: The running of a number of enterprises in the secondary sector, including some large units. The low level of the competitiveness of the region s economy and a low level of foreign investment drawn in the area in comparison to the large urban centres of both countries. The relatively high level of unemployment observed among women and the younger productive ages compared to male population and older age groups. Changes occurring over the last few years in Bulgaria, aiming at bringing the country in line with the requirements of a free market, support the establishment of crossborder entrepreneurial partnerships with a view to developing economic ties which will produce actual results in the economic web of the area. Interventions implemented in the past, in the framework of the CIP INTERREG II External Borders, have significantly contributed to the development of such ties. Through this Initiative, an attempt was made to promote cooperation between bodies supporting SME activity through the establishment of a Trans-Balkan and Black Sea Entrepreneurial Centre in Thessaloniki, which, being present in Balkan countries, collects information necessary about business cooperation and the promotion of cooperation actions. 34
35 B2. SPECIFICATION AND DETAILED DESCRIPTION OF THE CONTENT OF THE MEASURE, ITS AIMS, AND ANALYSIS OF ITS RELEVANCE TO THE PRIORITY AXIS IT COMES UNDER The Measure involves the strengthening of cross-border investment activity for the modernisation or development of production units in both the Eastern Macedonia Thrace and Central Macedonia regions and Bulgaria, on the basis of the advantages offered by the local production structure, with a view to its further modernisation and development. The aim of the Measure is: to promote cross-border entrepreneurial collaborations supporting the establishment of economic networks producing actual results in the economic web of the area. to enhance entrepreneurship in the tourism area by the development of special forms of tourism, tailored to the environmental characteristics of the wider area to support the further development of the economic potential of the cross-border region by strengthening existing structures to support private bodies to develop business partnership agreements on an individual basis. Promotion of employment by strengthening local employment market to deal with high unemployment Supporting equal opportunities for young people and women and promoting training Supporting and strengthening cross-border entrepreneurial cooperation with a view to providing joint support to human resources as a valuable asset Supporting the competitiveness of SMEs through staff training programmes to improve their skills Interventions under the Measure are directly linked with the 1 st special aim of Priority Axis 2 concerning the support of cross-border entrepreneurial collaborations designed to strengthen local economy and the area in the wider European space. 35
36 B3. RANKING MEASURE NEEDS AND PRIORITIES, AND CONTRIBUTION TO THE ATTAINMENT OF THE OBJECTIVES OF THE MEASURE Interventions under the Measure will focus on enhancing the economic web of the region, supporting local entrepreneurial cooperation bodies and human resource development. The objectives of Measure 2.1 will be achieved according to the following priorities: Supporting local economic networks in areas such manufacturing, development of alternative forms of tourism etc Supporting actions for the development of cooperation and know-how transfer between private enterprises, as well as between enterprises and organizations supporting entrepreneurial activities. Supporting collective bodies to provide support to business activities in eligible regions. Supporting human resource development actions B4. DESCRIPTION OF ACTION CATEGORIES AND INDICATIVE ACTIONS ANTICIPATED As regards the financing of investments in the framework of the Measure, it is necessary to submit a business plan, the contents of which will be specified in the call for the Measure. The following indicative categories of actions will be implemented under the Measure 2.1: 1. Investments in the tourism sector This category will include the implementation of investments in the area of tourism, seeking to develop common natural and cultural resources in the area and develop alternative forms of tourism (healing, ecology, nature lovers etc) Projects selected will support cross-border cooperation in the area of tourism, enhance the economic ties between the two countries and improve the local employment situation. Indicative categories of actions include: 36
37 Actions undertaken by private enterprises, collective bodies and public bodies that help develop cross-border alternative forms of tourism and making good use of the natural and cultural resources of the area. Priority will be given to projects implemented on an ongoing basis and extend beyond the borders. Action to publicise and promote services provided and the tourist resources of the region on both sides of the border. Investments incorporating new technologies for the required implementation of cooperative networks amongst the private or public enterprises involved, on both sides. Application and development of information, booking systems etc. to promote cooperation on tourism and recreation. Supporting the transfer of know-how and exchange of information (e.g. Practical experience of existing local/regional tourism services) Actions to support entrepreneurship with a view to enhance cross-border tourism-related activities Infrastructure projects supporting modern forms of tourism, aided by new technology. 2. Investments in the manufacturing and services sectors This category includes the implementation of investments in economic activity areas other than tourism (industry, services), with emphasis on those activities which enhance entrepreneurial cooperation for the benefit of both countries. Indicative action fields in this category are: Cooperation between the enterprises of both countries for the joint exploitation of the advantages stemming from the vertical organization of the production processes, organization and commercialisation. Assistance in obtaining certification for specifications and quality assurance for goods and services produced Investments in the area of protecting the environment Know-how transfer and its application on matters of production, organization and product availability. 37
38 Actions for a joint projection and promotion of products, giving emphasis to digital technology, to already existing or new markets. 3. Assisting agencies that support business activity This category will include projects undertaken by collective bodies and structures supporting entrepreneurial activity (Chambers of Commerce, etc), aiming at providing services to businesses and establishing firm trade ties between the two countries. Indicative actions are: Assistance to support services provided to businesses, especially to small-medium enterprises, by support organizations on both sides (network development and information banks, organizing exhibitions, printed matter, organizing business conferences and workshops etc) Creation of common cooperation structures for the provision of joint cross border services to businesses in the region, especially small to medium enterprises. Promotion of cooperation between collective bodies for the implementation of common actions, shared information and promotion of various bodies and the creation firm business ties in the region. Actions to encourage innovative forms of cross-border entrepreneurial partnerships and the integration of new technologies, especially of digital technology 4. Development of human resources Actions to support cross-border bodies or agencies promoting employment in the cross-border region with a view to establishing new job opportunities and restructuring regional job markets Actions supporting networking in the cross-border regions concerned Training actions for employed and unemployed people in the eligible cross-border region in areas of interest Training actions for SME staff in the eligible region Actions designed to establish cross-border cooperation support structures, giving emphasis to labour market mobility and redirection of investment. 38
39 Actions concerning the transfer of know-how and its application on organization, administration issues and the provision of specialised services. ELIGIBLE EXPENDITURE INTERREG III A (ERDF) Eligible expenditures are determined on the basis of Regulations: 1260/99, 1685/00, 438/01 PHARE CBC Project material-related expenses and operating expenses Staff costs Planning expenses Small investment costs relating to the actions Traveling expenses Workshop expenses Consultation and training costs B5. LEVEL OF ASSISTANCE INTERREG III A (ERDF) For private projects under the Measure, the level of assistance amounts to 50% of the eligible cost. For the other agencies it will be further specified. PHARE CBC Financing of independent projects under PHARE CBC amounts to 2 5 M. These limits will apply to all projects other than those traditionally characterised as projects funded by Minor Projects Fundfn, the funding of which cannot exceed 300,000.1 In respect of minor projects or measures (PHARE CBC contribution is set to 2-5 M ), deductions can be made on an 1 Those covered under points (j) to (n) of Art 5(1) of Commission Regulation 2760/98 39
40 individual basis and only following an assessment by the Commission. All projects financed by PHARE CBC must be co-funded by at least 25% of the total project costs from national funds. B6. QUANTIFICATION OF MEASURE S OBJECTIVES - OUTPUT INDICATORS - EXPECTED RESULTS - IMPACTS Envisaged indicators are indicative and, depending on the projects to be selected, there may be changes in the course of programme implementation. Output Indicators BASELINE VALUE TARGET 2008 Number of business plans 80 Number of training programmes 90 Result Indicators Number of jobs created during project implementation (equivalent annual full-time positions) These will be estimated ex-post Impact Indicators New full time jobs
41 C. FINANCING PLAN The Financial Table of Measure 2.1 is shaped as follows: MEASURE 2.1 TOTAL COST PUBLIC EXPENDITURE NATIONAL CONTRIBUTION 7,752, STATE CONTRIBUTION 6,972,500 OTHERS 0 EU CONTRIBUTION 23,257, PRIVATE PARTICIPATION 48,020, ,010, ,010, The Financial Table of Priority Axis 2 per year and measure is provided in a separate chapter in the Annex to the present document. D. IMPLEMENTATION INTERREG III A (ERDF) Implementation of the Measure entails the following implementation stages: The Technical Secretariats, in conjunction with the Managing Authority of the Programme, will update the anticipated categories of Final Beneficiaries of the Measure and will inform them about the possibility of project funding. Information will include the kind of actions that can be proposed for selection under the Measure, the manner (by making available standard forms) and the PHARE CBC Major Projects (> 2M EURO) Programming cycle initiation by the National Aid Coordinator in conjunction with the Ministry of Regional Development and Public Works Following initiation, the Ministry of Regional Development and Public Works (MRDPW) will contact Potential Contractors in order to determine project proposals MRDPW will consider submitted proposals based on the priorities laid down in the Joint Programme 41
42 requirements that must be met by submitted proposals, as well as procedures for their evaluation, in accordance with the Guidelines for INTERREG III, Programme Implementation Provisions and the selection criteria applicable to the Measure. Applications for selection are submitted by Final Beneficiaries to the Technical Secretariat of the respective Region, together with the Project Technical Fiche under the CSF III, incorporating all Subproject Technical Fiches using the Ministry of Economy s MIS codification (MIS/ERGORAMA). Completeness of submitted proposal dossiers is checked by the respective Technical Secretariat and dossier is forwarded to the Managing Authority of the Programme, together with comments. Document and the maturity of the projects Organising joint Bulgarian-Greek meetings to determine likely projects Submission of proposals to the Bulgarian unit of the PHARE CBC Steering Committee for approval Submission of project final dossier to the EU by the National Aid Coordinator for final approval Final selection and approval of proposed projects by the Joint Steering Committee Drafting of a financing proposal by the EU Approval of financing proposal by the Managing Authority of PHARE CBC Drawing up and Signing of the Financing Memorandum. Minor Projects: A simplified procedure is envisaged, in the framework of Minor Projects Fund, for people-to-people (soft actions) and minor infrastructure projects, which will be explained to candidates. Proposals are assessed by the Managing Authority of the Programme, based on action selection criteria and submitted to the Joint Greek-Bulgarian Steering Committee for approval. A decision is made by the Managing Authority of the 42
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