EU Funds investments and projections, preparation for the 2014-2020 period March, 2014
Content 1.Implementation progress 2.Risks 3.Progress of 2014-2020 21.03.2014 2
1.1. 2007-2013 absorption by 31.01.2014. (M EUR, % of EU funding, progress % since 31.03.2013.) 0 1 000 2 000 3 000 4 000 5 000 6 000 4 530,4 (100%) 404,6 (8,9%) Total: 4 935 (108,9%) Total 2 407,6 (100%) 3 053,2 (67% + 9%) 2 988,4 (66% + 11%) 279,9 (11,6%) Total: 2 687,5 (111,6%) 4 562,8 (101% + 5%) ERDF 1 539,8 (100%) 2 435,3 (101% + 8%) 1 574,6 (65% + 7%) 1 520,3 (63% + 10%) 49,8 (3,2%) Total: 1 589,6 (103,2%) Approved projects Payments to fianl beneficiaries CF 1 489,3 (97%; 0%) 944,1 (61% + 10%) 914,2 (59% + 10%) 583,1 (100%) 74,9 (12,9%) Total: 658 (112,9%) Recieved advance and interim payments from EC EU funding ESF 638,2 (109% + 5%) 534,5 (92% + 11%) Overcommittments 553,9 (95% + 12%) 0 1 000 2 000 3 000 4 000 5 000 21.03.2014 3
1.2. Contracts by industries (M EUR, % of EU funding till 31.01.2014.) 231,7 187,6 109,1 50,6 22,0 15,3 1 273,5 Transport / ICT (28,7%); 93,1%* Environment (15,5%); 91,7% Education (11,0%); 103,9% 256,1 Entrepreneurship and Innovation (9,2%); 88% Employment and social inclusion (8,5%); 113,6% 330,3 Urban environment (7,4%); 120,3% Science (5,8%); 96,1% Health (5,2%); 105,6% 377,1 Energetics (4,2%); 94,3% Support for EU funds management (2,5%); 98,2% 407,0 688,8 Culture (1,1%); 140,4% Administrative capacity (0,5%); 96% 488,1 Tourism (0,3%); 88,7% * - Contracts as % of available EU funding for industry 21.03.2014 4
1.3. Progress by Ministries by 31.01.2014 (M EUR, % of EU funding) MoEPRD MoT MoE MoES 746,0 (62,5%) 729,4 (100%) 681,3 (93,4%) 449,9 (61,7%) 746,2 (100%) 750,4 (100,6%) 501,3 (67,2%) 1 222,9 (100%) 1 238,0 (101,2%) 952,1 (77,9%) 1 193,5 (100%) 1 194,5 (100,1%) 80,9 (11,1%) 48,1;129 279,5; 360,4 51,3 (6,9%) 47,1 244,9; 296,2 117,7 (9,6%) Total: 1 340,6 (109,6%) 102,6 270,8; 388,5 74,5 (6,2%) Total: 1 268 (106,2%) 73,5 447,5; 522 Total: 810,3 (111,1%) Total: 797,5 (106,9%) 0 500 1000 1500 Available EU funding; Total 4 403,6 meur (without technical assistance - 126,8 meur) Overcommittments; Total 404,6 meur Approved projects; Total 4 438,1 meur Payments to the funding recipient; Total 3 106,6 meur 21.03.2014 5
1.4. EC payments by 10.02.2014 % of Member state s allocation Lithuania Estonia 78,77 % 84,15 % Poland Cyprus Latvia Slovenia Hungary Slovakia Malta Czech Republic Bulgaria 67,86 % 66,96 % 65,96% 62,90 % 59,26 % 52,62 % 52,30 % 51,12 % 50,28 % Romania 38,07 % Croatia 18,27 % 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% 1st place within ESF 21.03.2014 6
1.5. EU funds budget execution in the division of Responsible Institutions in 2013, M EUR 300 250 200 150 263 236 236 214 175 170 127 120 1. Responsible Institutions forecast - 856,1 M EUR; Law of Budget* 745,3 M EUR. 2. State budget expenditure fulfilment - 96,0% or 677,4 M EUR of total available budget 705,9 M EUR, non-performance 28,4 M EUR. 3. Main non-performances in the division of Responsible Institutions: - Ministry of Economics 9,8 M EUR Measures Regarding The Increase of Efficiency of Centralised Heat Supply Systems, Innovations, Promotion of Entrepreneurship, Improvement ofheat Insulation ofmulti-apartment Residential Buildings ; - Ministry of Education and Science 9,6 M EUR Priority Science and Innovations, Modernisation of Equipment and Improvement of Infrastructure for Implementation of Vocational Education Programmes; - Ministry of the Environmental Protection and Regional Development 5,9 M EUR ICT projects, Rehabilitation of Inherited Contaminated Sites; - Ministry of Finance 2,2 M EUR Tehnical assistance projects of all ministries. 100 93 94 83 84 50 0 Ministry of Transport Ministry of the Environmental Protection and Regional Development Ministry of Education and Science Ministry of Economics 49 43 42 46 35 35 Ministry of Welfare Ministry of Health 22 19 17 Ministry of Finance 11 10 10 Ministry of Culture 3 2 2 State Chancellery Ministry forecasts of 02.12.2012. (856,1 M EUR) Budget expenses of 2013 (677,4 M EUR) Available budget expenditure on 31.12.2013. (705,9 M EUR) 21.03.2014 7
1.6. Cash flow 2007-2013 and 2014-2020 M EUR 900 800 700 600 500 400 300 200 100 0 98 26 189 151 585 425 738 464 780 512 714 651 21.03.2014 8 677 624 779 574 550 530 66 845 44 198 811 745 613 590 154 439 280 245 195 342 342 307 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Final payment (~ Forecasted payments from EC for 2007-2013 planning period (4 530 M EUR) 2018.g.) Planned state budget expenditure for 2007-2013 planning period (5 039 M EUR) Forecasted payments from EC for 2014-2020 planning period (4 389 M EUR), incl. 2014-2017 (749 M EUR) Planned state budget expenditure for 2014-2020 planning period (4 835 M EUR), incl. 2014-2017 (886 M EUR) Total forecasted payments from EC in 2014-2017 (2 065 M EUR) Total planned state budget expenditure in 2014-2017 (2 279 M EUR) Payments from EC set in the Annual State Budget Law for 2014 (549.7 M EUR) 227
1.7.Targets for payments in 2013 M EUR, % of target 800 700 600 702,3 45,8 656,5 (93,5%) 500 400 300 200 100 0 360,3 (100,2%) 359,5 260,7 210,4 (80,7%) 85,8 (104,5%) 82,2 Feb. March April May June July August September October November December 50,3 ESF target ESF fulfillment ERDF target ERDF fulfillment CF target CF fulfillment Total target Total fulfillment 21.03.2014 9
Content 1.Implementation progress 2.Risks 3.Progress for 2014-2020 21.03.2014 10
2.1. 1 OP - ESF The risk of losing EU funding 700 600 No risk! 554 554 554 583 500 400 300 350 462 373 475 200 100 0 158 76 2011 2012 2013 2014 2015 Programme closure Actual payments (EUR) until 31.12.2013. and forecast for further years ESF "red line" (EUR) 21.03.2014 11
2.2. 3 OP ERDF The risk of losing EU funding No risk! 1 800 1 600 1 400 1 200 1 000 800 600 400 200 0 1 660 1 711 1 438 1 711 1 523 1 120 1 335 820 1 021 542 488 234 2011 2012 2013 2014 2015 Closure Actual payments (EUR) until 31.12.2013. and forecast for further years ERDF "red line" 21.03.2014 12
2.3. 2 OP - ERDF The risk of losing EU funding 800 700 600 500 400 300 200 100 0 304 101 2DP ERAF N+2/N+3 375 211 457 456 Till 2011 2012 2013 2014 2015 Closure ERDF "red line" (EUR) Actual payments (EUR) till 31.12.2013. and forecast for futher years 591 536 644 580 696 623 Worst case scenario: 2014 losses of EU funds up to 55 meur 2015 losses of EU funds total up to 73 meur Main problems: - Too optimistic cash flow modeling; - Many cancelations of projects Measures to be taken: - MoE and MoES develops plan of actions to acquire EU funds 100%; - MA strongly monitors intermediate terms of action plan 21.03.2014 13
2.5. Measures to be taken: MoE measures: New call (4th) of an activity «high value-added investments»; New call (2th) of an activity «Sub-activity "Support for construction or reconstruction of industrial premises«; Strict terms for every financial beneficiary to submit 35% of declarable expenses till 1st of December, 2014; Other actions (prolongation of agreements). MoES plans new calls within activity «Support for science and research» and «Support for international cooperation projects in science and technology» (additional 30 meur of EU funds absorption). A solid plan of measures with intermediate terms should be created and approved for both line ministries. MA will evaluate the actions already taken and proposals given, as well as will strongly monitor every step to be taken within the defined terms. 21.03.2014 14
2.4. 3 OP - CF The risk of losing EU funding - Problems in environmental and transport sector infrastructure projects - Government assignment for the ministries to carry out immediate arrangements Risk in 2015 - neto loss in total for the period aprox. 18 M EUR 1 700 1 300 1 333 1 265 1 237,13 1 583 1 522 1 539,78 900 965 953,85 2 013 2 014 2 015 CF "red line" (EUR) CF forecast Projection of payment requests 21.03.2014 15
Content 1.Implementation progress 2.Risks 3.Progress for 2014-2020 21.03.2014 16
3.1. Functions in 2014-2020 17
3.2. Allocation of the functions Responsible institution Develops planning documents Develops criteria and evaluation methodology Develops rules for specific support goals (SSG) Provides SSG results and control Co-operation institution Develops project selection regulations Advises project applicants and beneficiaries Performs project selection procedures Enters into contracts and agreements with the beneficiaries Monitors the implementation of projects
2007-2013 2014-2020 9 RI and 6 CI 10 RI and 1 CI (CFLA) RI functions can delegate to CI 3.3. Comparison RI and CI both approve projects and enter into agreements CI decisons can be challenged in RI Unjustified expenditures can be recovered in administrative procedure Unclear dispute resolution if the beneficiary is a public body Evaluation criteria in regulations of the activities Unequal conditions on freedom of information about the project Clear RI and CI allocation of functions Only CI approve projects and enter into agreements CI decisions can be challenged in Managing Authority Unjustified expenditures can be recovered only in civil procedure Clear dispute resolution if the beneficiary is a public body Evaluation criteria etc. in selection rules More equal conditions, more freedom of information
3.4.Partnership Agreement and Operational programme «Growth and Employment» for 2014-2020 The main documents used for developing of PA and OP Latvian National Development plan 2014 2020 Latvian National Reforms Programme for Implementation of Europe 2020 Strategy European Commission Position Document, presented on 4 December 2012 EU's Europe 2020 strategy for smart, sustainable and inclusive growth and its flagship initiatives (f.e. Resource efficient Europe, Digital agenda for Europa). Recommendation of the EU Council National strategies and etc. 21.03.2014 20
3.5.EU funds financing by thematic objectives Strengthening research, technological development and innovation 12% 0% 10% 3% 27% 11% 5% 7% 11% 2% 12% Enhancing access to, and use and quality of, information and communication technologies; Enhancing the competitiveness of small and medium-sized enterprises Supporting the shift towards a low-carbon economy in all sectors Promoting climate change adaptation, risk prevention and management Protecting the environment and promoting resource efficiency Promoting sustainable transport and removing bottlenecks in key network infrastructures; Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty Investing in education, skills and lifelong learning; Enhancing institutional capacity and an efficient public administration. Total EU financing (ESF, CF, ERDF) 2014-2020 for Latvia is 4.43 billion EUR 21.03.2014 21
3.6. Time schedule for 2014-2020 Partnership Agreement has been submitted to EC on 15 th of January 2014 (approved by Cabinet of Ministers in 17 th of December 2013) Operational Programme has been submitted to EC on 4 th of March (approved by Cabinet of Ministers in 11 th of February 2014) In 3 rd and 4 th quarter of 2014 implementation of first specific objectives will be launched Design of the National legislation base and improvement of management and control system (Guidelines and methodology) within 2014 28th of March, 2014 meeting of the Provisional Monitoring Committee 21.03.2014 22
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 21.03.2014 23