EU Funds investments and projections, preparation for the 2014-2020 period December, 2014
Content 1.Implementation progress 2.Risks 3.Progress of EU funds planning documents 2014-2020 4.Preparation for the 2014-2020 period - optimizing/simplifying EU funds management system 02.12.2014 2
1.1. 2007-2013 absorption by 31.10.2014. (M EUR, % of EU funding, progress % since 31.01.2014.) Total ERDF CF ESF 2 407,6 (100%) 1 539,8 (100%) 4 530,4 (100%) 1 879,8 (78%) + 15% 52,1 (3,4%) Total: 1 591,9 (103,4%) 1 508,4 (98%) + 1% 583,1 (100%) 81,4 (14%) 647,9 (111%) + 2% 647,9 (111%) + 2% 585,2 (100%) + 8% 553,9 (95%) 0% 1 508,4 (98%) + 9% 271,0 (11,3%) Total: 2 678,6 (111,3%) 2 593,5 (108%) + 7% 2 583,8 (107%) + 6% 1 870,9 (78%) + 13% 1 151,5 (75%) + 14% 1 196,6 (78%) + 19% 3 607,6 (80%) + 13% 3 630,3 (80%) + 14% Total: 664,5 (114%) 404,5 (8,9%) Total: 4 935 (108,9%) 4 749,7 (105%) + 4% 4 740,0 (105%) + 7% EU funding Overcommitments Approved projects Contracted amount Payments to final beneficiaries Recieved advance and interim payments from EC 0 2000 4000 6000 02.12.2014 3
1.2. 2007-2013 EU fund projects Contracts by industries (M EUR, % of EU funding till 31.10.2014.) 181,4 183,2 110,7 49,3 22,5 15,0 1 221,2 Transport (26,3%); 102,9%* Environment (15,2%); 94,2% Education (10,7%); 106,1% 243,3 230,9 Entrepreneurship and Innovation (9,8%); 96,3% Employment and social inclusion (8,2%); 115,3% Urban environment (7,3%); 123,5% Science (5,2%); 95,6% 339,1 Health (5%); 105,2% 382,7 708,0 Energetics (3,9%); 92,1% ICT (3,9%); 99,7% Support for EU funds management (2,4%); 99,7% Culture (1,1%); 136,6% 457,0 498,6 Administrative capacity (0,5%); 98,1% Tourism (0,3%); 87,1% Total: 4 740,0 M EUR (104,6%)* * - Contracts as % of available EU funding for industry 4
1.3. Progress by Ministries by 31.10.2014 (M EUR, % of EU funding) MoEPRD 1 216,7 (100%) 1 260,1 (103,6%) 1 028,8 (84,6%) 65,9 109,3 (9%) 187,9; 297,2 Total: 1 326 (109%) MoT 1 201,1 (100%) 1 249,3 (104,0%) 914,6 (76,1%) 741,4 (100%) 80,9 (10,9%) 76,5 (6,4%) Total: 1 277,6 (106,4%) 28,3 286,5; 363,0 Total: 822,3 (110,9%) MoE MoES 776,6 (104,7%) 499,2 (67,3%) 732,2 (100%) 762,5 (104,1%) 561,8 (76,7%) 45,7 242,2; 323,1 57,8 (7,9%) 27,5 170,4; 228,2 Total: 790 (107,9%) 0 500 1000 1500 Available EU funding; Total 4 530,4 M EUR Overcommitments; Total 404,5 M EUR Approved projects; Total 4 749,7 M EUR Payments to final beneficiaries; Total 3 607,6 M EUR 02.12.2014 5
1.4. EC payments by 06.11.2014 % of Member state s allocation Lithuania Estonia 92,20 % 91,43 % Poland Cyprus Latvia Slovenia Hungary Malta Bulgaria Czech Republic Slovakia Romania Croatia 81,76 % 81,20 % 80,23 % 72,69 % 72,13 % 64,00 % 59,94 % 59,70 % 56,14 % 50,59 % 43,41 % 0% 20% 40% 60% 80% 100% 1st place within ESF 02.12.2014 6
1.5. EU funds budget execution (2007-2013) in the division of Responsible Institutions in 2014, M EUR 300 250 200 150 100 50 0 259 226 200 Ministry of Transport 237 185 118 Ministry of the Environmental Protection and Regional Development 142 124 83 Ministry of Education and Science 134 110 75 Ministry of Economics 33 38 27 33 20 26 Ministry of Welfare Ministry forecasts for 2014 as of July 2013 (863,0 M EUR) Ministry of Health 17 20 13 16 8 Ministry of Finance 02.12.2014 7 7 Ministry of Culture Available (in ministry budget programmes) budget expenditure on 31.10.2014. (740,0 M EUR) Budget expenses till 31.10.2014. (550,2 M EUR) 1. Responsible Institutions forecast - 863,0 M EUR; Law of Budget 779,4 M EUR, amount reduced due to forecast of broken contracts or unused overcommitments. 2. Till 31.10.2014. the ministries have performed only 64% of the planned budget amount. 3. The big difference between forecasts and amount used confirms poor planning. 4. By the and of 2014 ministries could perform an amount of budget close to the one that is set in the Law of Budget 779,4 M EUR (as of 21.11.2014. the amount of budget in ministry programmes is 771,8 M EUR). 5. Main non-performances in the division of Responsible Institutions: - Ministry of the Environmental Protection and Regional Development - Ministry of Education and Science - Main reasons of non-performance: problems within public procurement procedures (appeals) and too optimistic cash flow planning 1 2 1 State Chancellery 779,4 M EUR amount of budget set in the Law of budget for 2014
1.6. National EU funds expenditure flow for 2007-2013 and 2014-2020 programming periods, M EUR 1 000 900 883 800 700 738 780 677 829 749 600 500 585 651 590 514 514 400 300 200 100 0 387 189 159 178 26 53 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Planned state budget expenditure for 2007-2013 planning period (5 243 M EUR) Planned state budget expenditure for 2014-2020 planning period (4 868 M EUR), incl. 2014-2017 (1 113 M EUR) Total planned state budget expenditure in 2014-2017 (2 709 M EUR) 02.12.2014 8
1.7.Targets for payments in 2014, till 31.10.2014 M EUR, % of target 900 846,8 800 700 600 500 581,7 657,2 495,8 736,9 444,4 In two month period 193,6 M EUR have to be paid out to the Final Beneficiaries (FBs) to reach ERDF target 400 300 200 100 0 319,7 284,2 250,8 190,9 366,6 312,1 340,5 53,3 58,1 61,8 Jan. Feb. March April May June July August Sept. Oct. Nov. Dec. Total target Total fulfillment ERDF target ERDF fulfillment 54,1 In two month period 149,6 M EUR have to be paid out to the FBs to reach CF target CF target CF fulfillment ESF target ESF fulfillment 02.12.2014 9
Content 1.Implementation progress 2.Risks 3.Progress of EU funds planning documents 2014-2020 4.Preparation for the 2014-2020 period - optimizing/simplifying EU funds management system 02.12.2014 10
2.1. 1 OP - ESF The risk of losing EU funding, M EUR 700 600 NO risk! 554 554 562 566 583 500 462 475 400 350 373 300 200 158 100 76 0 2011 2012 2013 2014 2015/16 Programme Closure 2017 ESF "red line" Projection for payment claims (actual value by 2013) Payment claims submitted till 31.10.2014 02.12.2014 11
2.2. 3 OP - ERDF risk of losing EU funding, M EUR 2 000 NO risk! 1 660 1 711 1 500 1 120 1 450 1 335 1 392 1 000 820 1 021 500 542 488 0 234 2011 2012 2013 2014 2015/16 Programme closure 2017 3DP ERDF "red line" Projection for payment claims (actual value by 2013) Payment claims submitted till 31.10.2014. 02.12.2014 12
2.3. 3 OP - CF risk of losing EU funding, M EUR 1 600 Currently NO risk! 1 494 1 540 1 300 1 000 965 1 219 1 272 1 237 700 511 709 954 400 213 442 100 2011 2012 2013 2014 2015/16 Programme closure 2017 3DP CF "red line" Projection for payment claims (actual value by 2013) Payment claims submitted till 31.10.2014. 02.12.2014 13
2.4. 2 OP - ERDF The risk of losing EU funding 700 675 696 600 591 500 400 375 457 456 493 304 300 200 211 101 100 2011 2012 2013 2014 2015/16 Programme Closure 2017 2DP ERDF "red line" Projection for payment claims (actual value by 31.10.2014) 02.12.2014 14
Content 1.Implementation progress 2.Risks 3.Progress of EU funds planning documents 2014-2020 4.Preparation for the 2014-2020 period - optimizing/simplifying EU funds management system 02.12.2014 15
3.1.Architecture of EU funds programming documents and financing scheme for 2014 2020 planning period in Latvia Partnership Agreement ESI funds 5.6 billion EUR Ministry of Finance CF, ERDF, ESF CP funds The Ministry of Agriculture EAFRD, EMFF Operational programme «Growth and employment» 4.4 billion EUR Latvian Rural Development Programme 2014-2020 (EAFRD) 1.1 billion EUR Action Programme for Fisheries Development 2014-2020 0.1 billion EUR 02.12.2014. 16
3.2. Planning documents of EU funds (2014-2020) Partnership agreement (CF, ERDF, ESF, EFARD, EMFF) 20.06.2014. Approved by European Commission Prepared by MS, involving social and cooperation partners Includes assesment of State needs and possible solutions Defines financing by Thematic Objectives Defines investment strategy Operational Programme (CF, ERDF, ESF) OP 11.11.2014. Approved by European Commission Displays introduction of a particular investment strategy of PA Defines the priority axes, specific objectives, achievable results and indicators, supported activities 02.12.2014. 17
3.3.Cohesion policy EU funds by thematic objectives 2014 2020, % Total: 4,4 billion EUR Strengthening research, technological development and innovation 10% 12% 0% 11% 4% 7% Enhancing access to, and use and quality of, information and communication technologies; Enhancing the competitiveness of small and medium-sized enterprises Supporting the shift towards a low-carbon economy in all sectors Promoting climate change adaptation, risk prevention and management 3% Protecting the environment and promoting resource efficiency 11% Promoting sustainable transport and removing bottlenecks in key network infrastructures; Promoting employment and supporting labour mobility 2% Promoting social inclusion and combating poverty 27% 13% Investing in education, skills and lifelong learning Enhancing institutional capacity and an efficient public administration 02.12.2014. 18
3.4. Cohesion policy EU funds by priority axis 2014 2020, % 10% 0% 1% 1% 11% 1.Research, technological development and innovation 2. Availability of the ICT, e-government and services 4% 3. Competitiveness of small and medium-sized enterprises 12% 7% 4. Shift towards a low-carbon economy in all sectors 3% 11% 5. Protection of environment and effective use of resources 6. Sustainable transportation system 7. Employment and labour mobility 8. Education, skills and lifelong learning 9. Social inclusion and combating poverty 26% 14% 10. Technical assistance ESF support for implementation and management of CP Funds 11. Technical assistance ERDF support for implementation and management of CP Funds 12. Technical assistance CF support for implementation and management of CP Funds 02.12.2014. 19
3.5.SO s which implementation will start in 2014 Planned financing for 2014 65,54 mill EUR (will be financed 13mill EUR) Specific objective Statuss 6.1.3. To ensure necessary infrastructure on main flyovers of Riga and to prevent fragmentary nature of main streets 6.1.5. To reconstruct the pavement of state main roads, increasing bearing capacity 6.3.1. To increase regional mobility through improvement of the quality of state regional roads 7.2.1. To increase the employment of young people not in employment, education or training and to facilitate their participation in education within the framework of Youth Guarantee 8.1.3. To increase number of modernised vocational education institutions 8.3.3. To increase inclusion of SEA non-registered NEETs and foster their inclusion in education, supported measures within the framework of Youth Guarantee, and NGOs or youth centres 9.2.3. To support the development and implementation of prior (cardiovascular, oncology, perinatal and neonatal period care and mental health care) health network development guidelines and quality assurance system, especially for improvement of health of people at risk of social exclusion and poverty In 03.07.2014. implementation of first call has started Implementation has started, procurement procedure in progress Implementation has started, procurement procedure in progress Implementation has started 02.01.2014. Regulations of Cabinet of Ministers of conditions of implementation of SO will be submitted to Cabinet of Ministers in the end of 2014 Criteria of project selection were adopted in written procedure of Temporary monitoring committee in 09.10.2014. Regulations of Cabinet of Ministers of conditions of implementation of SO will be submitted to Cabinet of Ministers in the end of 2014 02.12.2014. 20
3.6.SO s which implementation will start in 2015 Specific objective 2.2.1. To ensure increase in the re-use of public data and efficient interaction of public administration and private sector Statuss 2nd Q 3.3.1. To increase the amount of private investment in the regions, by making investment for entrepreneurship development according to the economic specialization of territories set in the 3rd/ 4th Q municipal development programs, as well as based on the local entrepreneurs needs. 4.1.1. To promote effective use of energy resources, reduction of energy consumption and transfer to RES in manufacturing industry. 3rd Q 4.5.1. To develop the infrastructure of environmentally friendly public transport. 3rd/ 4th Q 5.1.2. To reduce flood risks in rural areas. 3rd Q 5.4.2. To ensure the development of environmental monitoring control system and timely prevention of environmental risks, as well as participation of the society in environmental management. 3rd Q 5.5.1. To preserve, protect and develop important cultural and natural heritage, as well as to develop related services. 3rd/ 4th Q 5.6.1. Promotion of revitalisation of urban areas in Riga, ensuring efficient socioeconomic use of the area. 5.6.2. Revitalisation of territories through regeneration of degraded territories according to municipal integrated development programmes. 7.1.1. To raise the qualification of the unemployed and improve their skills according to the demand of labour market. 7.1.2. To create a system of anticipation and management restructuring in labour market, ensuring its connection to the Employment barometer. 9.1.1. To facilitate inclusion of disadvantaged unemployed people in the labour market. 02.12.2014. 21 2nd Q 3rd Q 1st Q 1st Q 1st Q
3.7.National EU funds expenditure flow for 2007-2013 and 2014-2020 programming periods, meur 1 000 900 883 800 700 738 780 677 829 749 600 500 585 651 590 514 514 400 300 200 100 0 387 189 159 178 26 53 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Planned state budget expenditure for 2007-2013 planning period (5 243 M EUR) Planned state budget expenditure for 2014-2020 planning period (4 868 M EUR), incl. 2014-2017 (1 113 M EUR) Total planned state budget expenditure in 2014-2017 (2 709 M EUR) 02.12.2014. 22
3.8.Time frame Fulfilment of exante conditionalities * Review and enactment of SO s criteria in Monitoring Committee * Promulgation of Regulation of the Cabinet of Ministers in Meetings of the State Secretaries Implementation of SO s, approval Regulation of the Cabinet of Ministers Ex-ante evaluations of specific objectives 2 weeks-1 month To review it in Subcommittee (Before ore at the same time with Regulation of the Cabinet of Ministers) Review and enactment SO s criteria, Regulation of the Cabinet of Ministers and Ex-ante evaluations of specific objectives in Subcommittee 2014-2015 according to documents that has been submitted of line ministries ~ 1-2 month! To start implementation of SO s all ex-ante conditions have to be fulfill Development of SO s implementation conditions (criteria, Regulation of the Cabinet of Ministers) 2014-2015 according to work plan of line ministries Submission of SO s criteria and Regulation of the Cabinet of Ministers to the Subcommittee 1 month before Subcommittee Time period 3-6 month 02.12.2014 23
3.9.Main results Work and social support Business and Innovation Transport Education Social life and convenience 2500 new jobs will be created Support will be provided for more than 3,000 companies. Will be reconstructed 919 km of roads In general educational institutions will be integrated children with special needs 59% of waste will be recycled and regenerateded 100,000 unemployed people will take participation in employment promotion activities 10% proportion of innovative businesses Will be constructed or rehabilitated more than 900 km of railway 80,000 children and young peplpe from lowincome families will receive support to promote access to education. 82% of households will have access to broadband Internet at data rates of not less than 30 Mbit / s. 37,700 young people will have necessary requirements of the labor market. Will be reconstructed ~ 70 km of heating main 02.12.2014 24
Content 1.Implementation progress 2.Risks 3.Progress of EU funds planning documents 2014-2020 4.Preparation for the 2014-2020 period - optimizing/simplifying EU funds management system 02.12.2014 25
4.1.Main differences between MCSs 02.12.2014 26
4.2.Delegation of functions 2007-2013 2014-2020 Verification of delegated funcions Managing Authority Ministries (Responsible Authorities) Verification of delegated funcions Verification of delegated funcions Ministries (Responsible Authorities) Managing Authority Verification of delegated funcions Agency (CFCA) Agencies (6 Cooperating Authorities) 02.12.2014
4.3.Allocation of functions between RI and CI in 2014-2020 02.12.2014 28
4.4.Main differences between two periods 02.12.2014 29
4.5.Reduction of administrative burden E-cohesion system all documentation in one e-place Avoid audit duplication over same project, compilation of audit plans More effective and simplified implementation system of the EU funds CFCA as one stop agency for FB performs all controls, unified approach Simplified costs 02.12.2014 30
Thank you Any Questions? www.esfondi.lv www.fm.gov.lv esfondi@fm.gov.lv - e-mail for suggestions on LV EU funds system improvement 02.12.2014 31