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ANNUAL REPORT 2009
OPERATIONAL PROGRAMME
ENVIRONMENT 2007 – 2013
EUROPEAN UNION EUROPEAN REGIONAL DEVELOPMENT FUND COHESION FUND
OPportunities for better life
NATIONAL STRATEGIC REFERENCE FRAMEWORK 2007 – 2013
MINISTRY OF ENVIRONMENT AND WATER
2
OPERATIONAL PROGRAMME „ENVIRONMENT 2007-2013”
ANNUAL REPORT 2009
1. IDENTIFICATION
Objective: Convergence
Eligible area concerned: Bulgaria
Programming period: 2007 – 2013
Programme reference number (CCI Code):
2007BG161PO005
OPERATIONAL
PROGRAMME
Programme title:
Operational Programme “Environment 2007 – 2013”
Reporting year: 2009 ANNUAL REPORT ON
IMPLEMENTATION Date of approval of the annual report by the monitoring
committee: 15.06.2010
2. OVERVIEW OF THE IMPLEMENTATION OF THE OPERATIONAL
PROGRAMME
2.1. ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS
Information on the physical progress of the operational programme:
Core indicators
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Indicator 1:
Additional
population served
by waste water
projects
Achievement 0 0
Target (1) 0 0 0 1 295
000
1 845
000
Baseline 45
000
45
000
45
000
Indicator 2:
Constructed and
completed
integrated waste
management
systems
Achievement 0 0 0
Target (1) 0 0 0 12 27
Baseline 5 (5) 5 (5) 5 (5)
3
Additional indicators:
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Indicator 3:
Population
connected to urban
WWTP
Achievement
0 0 0
Target (1)
0 0 0 58.04%
66.46
% (2)
Baseline 40.5
% (3)
40.5
% (3)
40.5
% (3)
Indicator 4:
New and
rehabilitated
WWTP
Achievement
0 0 0
Target (1)
0 0 0 22 65
Baseline 1(4)
1(4)
1(4)
Indicator 5:
Population served
by integrated
waste management
systems
Achievement
0 0 0
Target (1)
0 0 0
1 983
264
3 967
000
Baseline 467
000
467
000
467
000
Indicator 6:
Percentage of
total NATURA
2000
(protected zones
and protected
areas) to be
mapped/managed
Achievement
0 0 0
Target (1)
0 0 0 2.6 8
Baseline 0 0 0
Indicator 7:
Number of
mapped protected
areas and
zones of
NATURA 2000
network
Achievement
0 0 0
Target (1)
0 0 0 14 44
Baseline 0 0 0
4
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Indicator 8:
Number of
elaborated
management
plans
for protected
areas and zones of
NATURA
2000 network
Achievement
0 0 0
Target (1)
0 0 0 14 44
Baseline 0 0 0
(1) In the OPE, the targets for all indicators are defined for the years 2010 and 2013.
(2) End of period value aims to measure only the achievements to be completed with financing from OPE 2007 -
2013.
(3) NSI Statistical Reference Book “Environment” – the data are for 2004. Afterwards the NSI published data for
2007 (42.2%) and for 2008 (43.9%)
(4) The baseline value refers to WWTPs completed with financial assistance from ISPA. In 2009 5 WWTP were
constructed
(5) The baseline refers to integrated waste management systems completed with financial assistance from ISPA.
N/A – information not available
* During the reference period there was no physical advance achieved on the OPE indicators.
Therefore, there is no relevant information to be supplied under this item.
FINANCIAL INFORMATION (ALL FINANCIAL DATA ARE GIVEN IN EUR)
Priority axes by source of funding (EUR)
Expenditure paid
out by the
beneficiaries
included in
payment claims
sent to MA
Corresponding
public contribution
Priv
ate
expe
ndit
ure (1)
Expenditure paid
by the body
responsible for
making payments
to the beneficiaries
Total
payments
received
from the
Commission
Priority axis 1 38 466 706,03 € 38 414 540,11 €
0 46 037 610,48 €
0
- of which CF-type
expenditure
30 773 364,83 € 30 731 632,09 € 0 36 830 088,39 €
0
Priority axis 2
1 097 389,65 €
1 097 389,65 €
0 1 679 536,65 €
0
- of which ERDF-type
expenditure
932 781,20 € 932 781,20 €
0 1 427 606,15 €
0
Priority axis 3
63 109,20 € 63 109,20 € 0 1 007 743,30 €
0
- of which ERDF-type
expenditure
53 642,82 € 53 642,82 € 0 856 581,81 €
0
Priority axis 4
834 293,85 € 834 293,85 € 0 703 605,95 € 0
- of which ERDF-type
expenditure
709 149,78 € 709 149,78 € 0 598 065,06 € 0
Grand Total 40 461 498,74 €
40 409 332,82 €
0 49 428 496,39 € 147 388 787
€
5
Total for regions with
transitional support in the
grand total
0 0 0 0 0
Total for regions without
transitional support in the
grand total
0 0 0 0 0
ESF-type expenditure in
the grand total where the
OP is co-financed by the
ERDF (2)
0 0 0 0 0
ERDF-type expenditure
in the grand total where
the OP is co-financed by
the ESF
0 0 0 0 0
(1) Only applicable for OP expressed in total cost (2) This field shall be completed for operational programmes co-financed by ERDF or ESF where use is made
of the option referred to in Article 34(2) of Regulation (EC) 1083/2006. (3) The information is cumulative
Total tranches received from the EC under OP Environment at 30.04.2010 amount to EUR 147
388 787.
INFORMATION ABOUT THE BREAKDOWN OF USE OF THE FUNDS BY CATEGORIES
Indicative allocation of the resources from the Community (EUR), by category:
Priority
theme
Form of
finance Territory
Economic
activity Location
Community
contribution
amount
44 01 01 12 BG 293 443 504.00
45 01
01
9
BG
166 433 336.00
46 01
01
9
BG
768 469 973.00
50 01 01 12 BG 2 701 931.00
51 01 00 21 BG 80 786 894.00
81 01 00 22 BG 146 686 777.00
85 01 00 22 BG 3 951 533.00
86 01 00 22 BG 3 951 533,00
Total 1 466 425 481
Value of signed contracts of the Community under OP Environment, by category, 2009:
Priority
theme
Form of
finance Territory
Economic
activity Location
Value of contracts
by priority theme
(EUR)
44 01 01 12 BG 0,00
6
45
46
01
01
9
BG
324 663 126, 69
50 01 01 12 BG 0,00
51 01 00 21 BG 23 241 400, 83
81 01 00 22 BG 112 298 528, 51
85 01 00 22 BG 0,00
86 01 00 22 BG 0,00
Total 460 203 056, 04
Legend:
Codes for the priority theme dimension
Code Priority theme
44 Management of household and industrial waste
45 Management and distribution of water (drinking water)
46 Water treatment (waste water)
50 Rehabilitation of industrial sites and contaminated land
51 Promotion of biodiversity and nature protection (including NATURA 2000)
81 Mechanisms for improving good policy and programme design, monitoring and
evaluation at national, regional and local level, capacity building in the delivery of
policies and programmes
85 Preparation, implementation, monitoring and control
86 Evaluation and studies; information and communication
Codes for the form of finance dimension
01 – Grant aid
Codes for the territorial dimension - territory type
00 – Not applicable
01 – Urban zones
Codes for the economic activity dimension
09 – Collection, purification and distribution of water
12 – Construction
21 – Activities linked to the environment
22 – Other unspecified services
Codes for the location dimension
BG - Bulgaria
7
ASSISTANCE BY TARGET
There is no relevant information to be supplied.
ASSISTANCE REPAID OR REUSED
No cancellation of the ERDF assistance under Article 98 (2) of Regulation (EC)
1083/2006 took place during the reporting period.
QUALITATIVE ANALYSIS
2009 Indicative Annual Work Programme
Priority axes, operations or activities
under OP Environment 2007-2013 for
which grants are awarded Eligible
beneficiaries
Maximum co-
financing
procured by the
contracting
authority
Month/period
in which the
call is
published
Maximum
non-
repayable
financing
(BGN)
Priority Axis 1: Improvement and development of water and wastewater infrastructure in settlements with
over 2000 PE within urban agglomeration areas.
Improvement and development of
drinking and waste water infrastructure
Municipalities CF – up to 80%
National co-
financing – 20%
of eligible
project costs *
March 2009 333 281 864
Priority axis 2: Improvement and development of waste treatment infrastructure
Preparation and update of municipal and
regional waste management plans
Municipalities,
regional
associations of
municipalities
March 2009 11 257 042
Technical assistance for preparation of
investment projects for closure of
municipal landfills that do not meet the
requirements
Municipalities May 2009 11 955 462
Closure of municipal landfills Municipalities
ERDF – up to
85%
National co-
financing – 15%
of total eligible
project costs *
September
2009
188 298 242
Construction of the regional waste
management system in the region of
Razlog
Construction of the regional waste
management system in the region of
Burgas
Construction of the regional waste
management system in the region of
Malko Tarnovo
Construction of the regional waste
management system in the region of
Dobrich
Construction of the regional waste
management system in the region of
Provadia
Construction of the regional waste
management system in the region of
Gabrovo
Construction of the regional waste
management system in the region of
Vidin
Specific
beneficiaries:
regional
associations or
municipalities
ERDF – up to
85%
National co-
financing – 15%
of total eligible
project costs *
2009 (if
project
pipeline is
established)
250 363 050
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Priority axes, operations or activities
under OP Environment 2007-2013 for
which grants are awarded Eligible
beneficiaries
Maximum co-
financing
procured by the
contracting
authority
Month/period
in which the
call is
published
Maximum
non-
repayable
financing
(BGN)
Construction of the regional waste
management system in the region of
Kocherinovo
Construction of the regional waste
management system in the region of
Pleven
Construction of the regional waste
management system in the region of
Botevgrad
Construction of the regional waste
management system in the region of
Yambol
Construction of the regional waste
management system in the region of
Sofia
Priority axis 3: Preservation and restoration of biodiversity
Development of NATURA 2000
network, including mapping of species
and habitats in protected zones,
elaboration of national information and
communication strategy on NATURA
2000 network
Specific
beneficiary:
National Nature
Protection
Service (NNPS)
Directorate of
MOEW
February
2009
36 067 770
Development and update of the
management plans for protected areas
and zones
Specific
beneficiaries:
Balgarka Nature
Park Directorate
(NPD)
Belasitsa NPD
Rila NPD
Central Balkan
NPD
March 2009 15 310 058
Protection and restoration of the
biodiversity in the country, including
development of action plans for
endangered species of global/European
significance and implementation of the
activities set out in the plans;
implementation of activities for
restoration of the biodiversity
Municipalities,
NGOs, structures
within MOEW
and SFA
August 2009 12 781 147
Surveys, analyses, studies required for
policy formulation and development of
strategic and programming documents
for preservation, halting the loss and
restoration of the biodiversity
Specific
beneficiary:
NNPS
Directorate and
SFA
September
2009
4 064 016
Increasing the awareness of
municipalities and the public on
NATURA 2000 network
Municipalities,
NGOs, structures
within MOEW
and SFA
ERDF – up to
85%
National co-
financing – 15%
of total eligible
project costs
December
2009
3 000 000
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Procedures under Priority Axis 1: Improvement and development of water and
wastewater infrastructure in settlements over 2000 PE within urban agglomeration areas
The dialogue launched in early 2009 on the economic efficiency of the projects
approved and implemented under OP Environment, in particular within Priority Axis 1, led to
adoption of entirely different project financing approach and methodology and to amendment
of certain criteria for the award of grants. First, two procedures under the axis were cancelled -
BG161PO005/08/1.11/01/04 “Improvement and development of water and wastewater
infrastructure for agglomerations above 10 000 PE” and BG161PO005/08/1.12/01/07
“Improvement and development of water and wastewater infrastructure for agglomerations
from 2 000 to 10 000 PE”. Within the corrective measures, MA undertook a review of the
projects under implementation with a view to guarantee their economic efficiency and
practicability. The results of the review and the measures undertaken are described under 3.1
below.
Procedures under Priority Axis 2: Improvement and development of waste treatment
infrastructure
Three calls for proposals on a direct award procedure were published within the
Infrastructure priority axis in 2009 for the following projects:
1. "Establishment of Sofia Municipality Integrated Waste Treatment " with total
grant amount of EUR 131 026 280 and deadline for application 30.03.2010.
2. "Establishment of a regional waste management system in Pernik Region " with
total grant amount of EUR 10 898 370.25 and deadline for application 15.05.2010.
3. "Establishment of a regional waste management system in Botevgrad Region" with total grant amount of EUR 5 611 128.97 and deadline for application 31.03.2010.
The reasons are described in details in section 3.2.2. The MA takes all necessary measures to
overcome the delay in the project preparation. Currently on OPE website indicatives timetables
for project implementation are published. These timetables are developed on the basis of the
available information for the projects’ progress. The latter is also mentioned in section 2.3 –
Problems related to the beneficiaries.
Procedures under Priority axis 3: Preservation and restoration of the biodiversity
The evaluation of the project proposals under procedure BG161PO005/08/3.0/01/05
“Preservation and restoration of the biodiversity in the Republic of Bulgaria” was completed in
2009, resulting in the implementation of 7 orders and 16 contracts totalling BGN 18 095
521.39. One order for the award of grant to RIEW Pleven was cancelled. The project was
cancelled on 28th
October 2009 with an order of the Minister of environment and water due to
serious technical difficulties in its implementation and to insufficiently elaborated activities.
The project can be submitted again under the forthcoming procedure after revision and
clarification of the activities.
The following procedures have been announced:
• BG161PO005/09/3.1/01/08 Development of NATURA 2000 network
• BG161PO005/09/3.2/01/09 Update of the Rila National Park Management Plan
• BG161PO005/09/3.2/02/10 Development of Bulgarka Natural Park Management Plan
• BG161PO005/09/3.2/03/11 Development of Belasitsa Natural Park Management Plan
• BG161PO005/09/3.2/04/12 Update of Rila National Park Management Plan
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The competition-based procedures scheduled for announcement at yearend were put off
for 2010. Detailed description is available under 3.3 below.
2.2. INFORMATION ABOUT THE COMPLIANCE WITH THE COMMUNITY LAW
Towards successful implementation of OP Environment, the following measures have
been identified, aiming to improve the national legislation on the organization and coordination
of operational programmes in the Republic of Bulgaria – DCM 121/2007 (see 2.3 below), as
well as the environment sector legislation:
A series of amendments to the Water Act were enacted in 2009, the latest one with SG
No. 103/29.12.2009. A major amendment concerns the ownership on the assets of water supply
and sewerage system operators. The network is written off from the assets of the previous state
and municipal water supply and sewerage companies and is transformed into public state or
public municipal property managed by water supply and sewerage associations in their capacity
of unions of the owners of water supply and sewerage systems and facilities.
The amended act regulates the issues of planning, ownership of water supply and
sewerage system assets and the uniform pricing policy for groups of users in the different water
supply and sewerage system regions. The water supply and sewerage companies are no longer
owners of the networks; they are designated as operators and manage the networks on a
concession basis. Currently operational companies are allowed to preserve their position up to
10 years.
For the purposes of operation and management of the water supply and sewerage
systems, the country is divided into separate territories corresponding to the operational water
supply and sewerage operators. The development of water supply and sewerage systems is
planned by means of regional master plans with validity of 25 years. By the end of 2010, the
master plans should be developed, coordinated and approved by the respective regional
development council, the respective basin directorates, and then approved by the associations.
The systems are managed by associations for water supply and sewerage services. The
municipal councils and the minister of regional development and public works delegate to the
associations for water supply and sewerage services the right to manage the respective property
of the water supply and sewerage systems.
In response to the letter from Directorate General “Regional Policy” of the EC, received
in early 2009 and saying not to sign new contracts for projects in the water sector financed
under Priority Axis 1 “Improvement and development of the infrastructure for water and waste
water in settlements above 2000 PE and in settlements below 2000 PE falling within urban
agglomeration areas” of OP Environment until solutions to major issues relating to planning,
ownership, operation and pricing in the water sector are found, a common national position of
the Bulgarian government was elaborated regarding the principles of management of the water
and sewerage sector.
The decisions regarding the ownership, management, planning and the construction and
operation of the water supply and sewerage systems, networks and facilities, contained in the
national position, are carried out by introducing the necessary amendments to the Water Act.
Spatial Planning Act
2009 amendments to SPA, relating to OP Environment, concern announcement and
coming into effect of Detailed Development Plans (DDPs) and their communication to the
stakeholders.
DCM No. 8/16 January 2009 which amends and supplements DCM No. 121/31
May 2007 laying down the provisions for the award of grants under the operational
11
programmes co-financed by the Structural Funds and the Cohesion Fund of the
European Union, and under the PHARE Programme of the European Union.
The decree expands the scope of the definition of “specific beneficiary” under §1 (7) of
the Supplemental Provisions of DCM No. 121/2007, incorporating therein for the purposes of
Priority Axis 2 of OP Environment 2007 - 2013 the associations of municipalities established
for waste management and/or the municipalities in the regions designated in accordance with
the National Waste Management Programme (NWMP).
DCM No. 8/2009 supplementing DCM No. 121/2007 provides for announcement of
procedures for direct award of grants under Priority Axis 2 of OP with beneficiaries –
associations of municipalities established for the purpose of waste management and/or the
municipalities in the regions designated in accordance with NWMP, which do not have in place
regional household waste management systems. The decree guarantees the fulfilment of the
commitments undertaken by the country towards achievement of compliance with Directive
1999/31/ЕС as it creates opportunities for efficient management and absorption of the funds
under OP Environment Priority Axis 2: Improvement and development of waste treatment
infrastructure.
DCM No. 202/13.08.2009 on the creation of a mechanism for coordination of the
management of EU funds. It provides for the set up of a Council for Management of EU Funds
to discuss all issues relating to the programming, management, monitoring and control of the
measures financed with EU funds.
DCM No. 209/20.08.2009 on procuring financing for the construction of regional
household waste management systems, of regional household waste pre-treatment facilities and
on closure of municipal landfills of household waste. It regulates the terms and procedure and
the sources of financing for construction of the regional household waste management systems,
of the regional household waste pre-treatment facilities and for the closure of municipal
landfills of household waste that do not meet the requirements laid down in Ordinance No.
8/2004 on the conditions and requirement to the construction and operation of landfills and
other installations and facilities for waste recovery and neutralization. The closure of municipal
landfills of household waste that do not meet the requirements laid down in the above
ordinance will be supported with subsidies from the state budget.
By CoM Decision No. 143/09.03.2009 the amount of advance payments under projects
financed from OP Environment and OP Regional Development was increased to 20% for
projects with value above BGN 1 million and up to 30% for all other operations. This makes
easier the implementation of projects financed under the two programs as it improves the
financial flows towards the beneficiaries.
CoM Decision No. 705/31 August 2009 on approval of the medium-term fiscal
framework and basic assumptions for the period 2010-2013. It changes beneficiaries’ own
contribution for the period 2010 – 2012 to 5, 8, and 10% respectively of eligible costs, thereby
incentivising beneficiaries to prepare their projects in due time towards absorption of OPE
funds and proper estimation of the project budget.
2.3. SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM
The implementation of Operational Programme Environment led to identification of a
number of important problems with impact on the programme, which can be structured into
several major groups:
• Problems concerning beneficiaries and measures taken to overcome them:
12
The main problem consists in delayed preparation of projects for OPE financing.
Investment projects should be prepared and developed in strict compliance with the provisions
of Community and national legislation. It was established that the beneficiaries encounter
significant difficulties in every stage of the preparation.
A major challenge is presented by the procedures for alienation of private
property/terrains required for the implementation of investment projects. Projects cover large
areas necessitating alienation of a large number of private terrains and this creates problems.
The change of the purpose of the land (which is mainly agricultural land) is a serious challenge
for the beneficiaries and delays the start of projects. MOEW applied to the Ministry of
Agriculture and Food, requesting for correspondence related to OPE and to other operational
programmes to be treated with priority.
Beneficiaries encounter serious difficulties with the procedures for obtaining permits
under the environmental legislation. As it takes a long time to prepare a project, in some cases
there is lack of correspondence between the parameters in the permits and the project scope.
Given the time limits for obtaining new and for amendment of existing permits, this is
considered also a problem, which delays project preparation. Therefore, the attendance of
experts from the Preventive Activities Directorate within MOEW is assured at the meetings
with potential beneficiaries with a view to providing competent advice on the cases concerned
and coming up with a solution at an early stage.
Procurement of municipal co-financing is also a serious challenge for project
implementation. MA of OPE has repeatedly raised before the Ministry of Finance the issue of a
need to amend the loan agreement with the European Investment Bank to include and option
for financing also the portion of eligible costs above the amount of the financial deficit
determined in the Cost-Benefit Analysis of the project concerned.
One of the main reasons for the delay of projects is lack of strategic efforts in the pre-
accession period for preparation of investment projects under ISPA – the preparation of
projects is seriously delayed and the projects that should have been completed came out in
conceptual phase in 2007. On the other hand, no efforts were taken outside ISPA.
As regards in particular Priority Axis 3, delayed mapping and assessment of the
favourable conservation status delays important subsequent projects under OPE such as the
development and approval of management plans for protected zones of NATURA 2000
network. Measures are taken to improve the capacity of the beneficiaries – structures within
MOEW, through trainings scheduled to start in 2010.
In addition, the initial desire to open the OPE to as many investment projects as possible
(with the organization of open calls for proposals) also proved to be inappropriate since it did
not involve active interaction between the MA and the Beneficiaries in the initiation and
planning stage, leading to the submission (and approval) of suboptimal projects, and no
systematic effort for preparation of projects.
All of the above puts Bulgaria in a situation in which 3rd
year into the program we have
very few projects compliant with the rules of the Cohesion funding. This became evident and is
currently addressed but might endanger the absorption of the operational programme. The MA
is aware of the problems and although there is a risk for the absorption of the funds within
OPE, it has a clear vision for corrective measures, that are already under implementation. The
MA is also aware of the approaching deadline under Directive 91/271/EEC and the
infringement procedure facing the country and has directed all its efforts toward minimizing
the consequences regardless the short-term deadlines. An analysis was undertaken resulting to
a preparation of indicative schedules for the projects in the water and waste sectors, giving
more clear vision for the maturity of the projects and give an indicative time framework for a
given project to be implemented.
13
• Administrative capacity of the Managing Authority and the Intermediate Body
of Operational Programme Environment.
The announced calls for proposals again brought to the front the issue of the insufficient
capacity of MA and IB to fulfil their responsibilities under the Internal Rules for Evaluation of
Procedures for Direct Grant Award. The two units as well as the other directorates within
MOEW are understaffed with qualified experts to provide preliminary consultations and to
participate in the expert working groups. Actions were taken along several lines with a view to
overcome this serious challenge:
Amendments to the Structural Regulations of the Ministry approved with DCM No.
274/20.11.2009 (promulgated, SG, No. 94/27.11.2009), whereby the new European and
International Projects Directorate is delegated functions for the preparation, management,
implementation, monitoring and control of international and European projects (except those
funded from OPE). This step resulted in clear division of the management and the monitoring
of projects funded under the pre-accession programme ISPA, projects financed from other
international donors and the projects funded under OPE. The functions of management and
monitoring of the projects financed under the operational programme remain within the
competence of MA. The management of the operational programme is now decentralized and
expertise-based – after the structural changes, the positions of the heads of MA and IB are
placed at the same footing as a director of a directorate. The specialized directorates (Water
Management, Waste Management, National Nature Protection Service Directorate within
MOEW, and Preventive Activities) are involved as much as possible in the management of
OPE in accordance with their competences.
Five competitions for further staffing of the two directorates (MA and IB) up to the staff
number set out in the manning table were held in 2009. Two competitions announced with
orders No. RD-36/13.01.2009 and No. RD-671/05.10.2009 of the Minister of Environment and
Water were held for the needs of MA of OPE. Given the specific skills of and requirements to
candidates, the competitions resulted in appointment of experts to 14 of the 20 announced
vacancies.
The number of the announced positions is greater because some of them have been
announced more than once.
The MA and IB are aware that there is a significant gap between the vacant positions
and the appointed personnel in 2009. The reasons for that gap are also obvious, even the
extreme need of personnel in both Directorates in the competitions appear not enough
competent candidates for the vacant positions. The competition procedures are undertaken
according to the procedures defined in the Civil Servants Act and in accordance with the
Regulations on Holding Competitions for Civil Servants adopted with Council of Ministers
Ordinance № 8 of January 16, 2004. The MA and IB competitions are announced in
accordance with the needs of staff for particular competences within the different departments
and fields of work. For example, both Directorates announce vacant positions for personnel
with expertise and experience in the areas of finance, law, engineers, information systems,
public relations ant etc. but having in mind that nowadays these areas are attractive in the
consultancy business people prefer this field. The other reason is of course the well known fact
that the public administration is underpaid in comparison with the private sector.
15Both Directorates are aware that the motivation of the staff must be enhanced and we
are in a process of thinking over about a mechanism and searching for possibilities to increase
the staff motivation by providing extra payments according to the achieved results. This is also
a recommendation from the Human Resources Development Strategy - for increasing the
motivation, including an analysis on attracting suitable candidates; identifying vacating reasons
14
by exit interview questionnaires, binding remunerations with individual achievements, as well
as providing extra payments under the Council of Ministers Decree 249/2007; review of the
appraisal system; taking further actions.
Three competitions announced with orders No. No. RD-9/06.01.2009, RD-
388/16.06.2009 and RD-719/28.10.2009 of the Minister of Environment and Water were held
to fill the manning table vacancies in IB. They resulted in appointment of experts on 11 of the
announced 24 vacancies.
The following trainings were provided with a view to strengthen and upgrade the
existing administrative capacity of MA:
No. TOPIC
1.
“Practical implementation of public procurement regulations towards efficient
management of the resources from the EU Structural Funds” within the project
“Improving the performance of the Central Coordination Unit and of the Monitoring
Committee of NSRF under OP Technical Assistance
2. Preparing and evaluating a project proposal
3.
Training on “Procedures, project evaluation and monitoring” under twinning project
PHARE BG/06/IB/SPP/ Improvement of the coordination, management and
implementation mechanisms of EU Structural Instruments in Bulgaria
4. Cost-Benefit Analysis
5. Public Procurement
6. State Aid
7. Applying the partnership principle in the Structural Funds sector
8. Procedures management and control. Risk analysis
9. Application of the Equal Opportunities and Horizontal Policies
10. Public-private partnership, lecturer: Tim Young from PM Group Ltd
11. Publicity and financial instruments
12. VAT in the context of the operational programmes under the EU Structural Funds and
Cohesion Fund
13. Detecting irregularities and frauds in respect of EU funds
14. Combating frauds and irregularities affecting the European Communities’ financial
interests: conclusions and outlooks
15.
Seminar on “The Cohesion Fund and major projects in the environmental sector.
Information and publicity activities for projects in the environmental sector”, twinning
project PHARE BG/06/IB/SPP/ Improvement of the coordination, management and
implementation mechanisms of EU Structural Instruments in Bulgaria
16. Workshop on the project “Assistance for the performance of certifying authority’s
functions under SCF”
17. Twinning BG06IBSPP01
18. Cost-benefit analysis
19. Evaluation and indicators of operational programmes
20. Seminar under Project 0009–IEC–3.0 “Raising the awareness about the perspectives and
opportunities provided by the EU under SCF in Bulgaria”
21. Training under activity 2.4 of twinning project PHARE BG/06/IB/SPP/ Improvement of
the coordination, management and implementation mechanisms of EU Structural
Instruments in Bulgaria
22. Training under OPAC project “Efficiency, targetedness and publicity in the preparation
and implementation of development policies and projects with international funding”
23. Financial control of the resources from the EU funds
24. Training on working with the internet site of OPE
15
25. Doors Open Days
26. Sustainable waste management
27. Management and monitoring of operational programs financed from EU funds
28. Management of programmes financed with EU funds
29. Development of EU-financed projects
The following trainings were conducted for the needs of IB of OPE:
№ TOPIC
1. 3 training on Cost Benefit Analysis
2. Twinning BG06IBSPP01 “The application of the Partnership principle in the Structural
Funds sector”-
3. Training on the implementation of the UN conventions on biodiversity
4. Good practices for effective coordination of resource planning, management and
monitoring of the implementation of policies for development and implementation of
internationally funded projects with selected EU member-states
5. Project “Technical assistance to enhance the administrative capacity of the central
administration in the European policy fields
6. Twinning BG06IBSPP01 “Management and Control Procedures” and “Risk Analysis”
7. Training on the implementation of the UN biodiversity conventions
8. Risk management in project implementation
9. Seminar on “Management of EU-funded projects”
10. Twinning BG06IBSPP01 “The application of the Equal Opportunities and Environmental
Sustainability Horizontal Policies in the Structural Funds Sector”
11. Training on public-private partnership
12. Working comment on the new amendments and supplements to the Public Procurement
Law, the Ordinance on the Award of Small Public Procurement Contracts and the
obligations of the contracting authorities under the Implementing Regulation of PPL
13. Technical assistance to enhance the administrative capacity of the central administration in
the European policy fields
14. International contracts: indicative case studies
15. The new rules and role of the Certifying Authority
16. Training on public procurement
17. Verification training
18. Twinning BG06IBSPP01 “Preparation of Calls for Proposal and Project Evaluation”
19. Seminar on “Practical implementation of public procurement regulations towards efficient
management of the resources from the EU Structural Funds”
20. Training on application of the UN biodiversity conventions
21. Training – Detecting and combating frauds
22. Seminar on “Combating frauds and irregularities affecting the European Communities’
financial interests: conclusions and outlooks”
23.
Workshop to communicate the new instructions of the minister of finance on the
operational programmes co-financed from the EU Structural and Cohesion Funds
concerning payments, certification of expenditure, the procedures of accounting and
reporting of irregularities and the accounting process
24. Transparency and accountability in the spending of public funds through public
procurement
25. Twinning BG06IBSPP01
26. Training on the upgraded ISPA/CF information system
27. Evaluation and indicators of the operational programme
28. Seminar for training of the persons responsible for the provision of information on the
16
implementation of the investment projects in the Action Plan to the National Strategy for
Integrated Development of the Infrastructure of the Republic of Bulgaria for the Period
2006-2015
29. Training trainers on working with UMIS
30. Participation in a seminar on “Practical management of contract claims and dispute
resolution under FIDIC Conditions of Contract (1999) and the Harmonized Conditions of
Contract (2006) of the multilateral development banks”
31. Training of the staff of EU Environment Funds Directorate in relation to Intermediate
Body’s work on verification and control of expenditure under OP Environment”
32. Management, control and audit of EU funds
33. Seminar of the countries making use of the technical assistance under the JASPERS
initiative of the European Investment Bank
34. Latest developments in the field of European public procurement legislation – agreements,
reform, legal practice
35. EU structural funds
36. Interviewing skills for staff recruitment in the state administration
37
.
Management of project implementation with MS Project
• Other In 2008, the National Assembly of the Republic of Bulgaria passed the Ratification Act
of the Loan agreement on a Structural Programming Loan (that will co-finance EU funded
projects for the period 2007-2013) between Bulgaria and the European Investment Bank
(promulgated SG No. 66/2008).The EIB granted the central budget of the Republic of Bulgaria
700 million euro for the provision of co-financing of projects that are expected to benefit from
grants by the EU over the programming period 2007-2013.
MA of the OPE proposed that projects approved under OP Environment should be
supported with funds from the loan agreement to cover the full amount of required investments.
The other option is to provide the financial assistance to the municipalities in the form of grants
as they represent local authority bodies, upon compliance with public procurement and
competition protection legislation, including state aid legislation, or in the form of a
government guaranteed interest-free loan that will enable the implementation of projects under
preferential conditions for the municipalities. In particular, this financial assistance should
cover both the costs eligible for funding under OPE, and the costs ineligible for reimbursement,
but inherent and necessary for the project. Otherwise, many of the projects will not start or will
be terminated due to the inability of municipalities to provide funds.
2009 failed to see in place a mechanism for allocation of funds from the loan agreement
to the beneficiaries towards ensuring effective implementation of projects and this has resulted
in a weak financial flow towards municipalities.
There is lack of a national fund or another government structure focused entirely on the
preparation of projects for construction of major infrastructure facilities (of national
significance). The set up of such a structure would enable the state to invest in such facilities
whereas the operational programmes, in particular OPE, would complement the finding up to
the full amount of the investment. This will make possible the implementation of projects of
national significance for which the state is unable to allocate all financial resources for their full
construction whereas the operational programmes could allocate EU funds to complement the
investment.
A serious barrier to the implementation of OPE-funded projects is presented by the
limitations laid down in Art. 43 of the Public Procurement Law (PPL), namely that contracts
17
signed under this law cannot be amended. In the process of coordination of the text of the Law
amending and supplementing PPL, MA of OPE prepared an opinion proposing that
amendments to signed contracts should be allowed where they are called for by circumstances
beyond the competences of the contracting authority. Unfortunately, the opinion was not taken
into account when the bill was introduced in the National Assembly.
At the fourth official meeting of the Monitoring Committee of OP Regional
Development, 2007 – 2013 on 30.04.2009, it was decided that funds under the scheme
“Support for improvement of the living environment through the organization of waste
collection and disposal systems” and under the scheme for support of operations in industrial
and business zones should be reallocated to the scheme for support of measures for energy
efficiency and implementation of RES in municipal educational institutions. No discussions
were held at national level on this topic, however a possibility for the municipality exists to
include purchasing of waste collection equipment as their own contribution to the construction
of regional waste management systems. These expenses should be included in the investment
costs of the project when preparing the CBA.
This breaks the complementarity of the two operational programmes, given that
municipalities would be unable to procure financial resources for the purchase of such
equipment, which is an essential element of the waste management systems.
2.4. AMENDMENTS IN THE CONTEXT OF THE IMPLEMENTATION OF OPE (WHERE
APPLICABLE)
Information flows
� The procedural representation before the judicial institutions of the European
Union is transferred from the administration of the Council of Ministers to the
Ministry of Foreign Affairs, supported with 5 full-time positions.
� In Annex No. 3 to Art. 7(1) of DCM No. 85/2007 on the organization and
coordination of EU matters (promulgated, SG, No. 35/2007; amm. and suppl.,
No. 53 and No. 64 of 2008 and No. 34 and No. 71 of 2009), the words “Ministry
of Finance” in line “Working Group 19” are replaced with “Administration of the
Council of Ministers” and the words “Administration of the Council of
Ministers” on line “Working Group 32” are replaced with “Ministry of Foreign
Affairs”.
CCU. From 23.09.2009, by CoM Decision “DCM 229”, the Central Coordination Unit is
resituated from the Ministry of Finance into the Administration of the Council of Ministers and
its functions are structured into three directorates:
� Programming of EU Funds Directorate:
1. provides general coordination of the programming of EU funds and performs the
functions of a central coordination unit for the management and implementation of EU-funded
programmes and measures, by:
а) organizing the development of the national strategic reference framework;
b) ensuring consistency of the operational programmes with the national strategic
reference framework;
c) providing coordination and complementarity of the funds from the structural
instruments with the European Agricultural Fund for Rural Development and the European
Fisheries Fund;
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d) ensuring compliance with the principles of partnership and complementarity and
guaranteeing at national level that EU funds are used in accordance with Community policies
and priorities;
e) ensuring implementation of the EU horizontal policies and principles in respect
of EU-funded programmes;
f) taking part in the coordination mechanism for working with the international
financial institutions towards efficiency in the preparation, implementation and management of
EU-funded projects;
2. takes part in the development and in the monitoring of the implementation of
EU-funded measures and programmes;
3. drafts opinions, expert opinions and methodological guidance on the
programming of EU funds;
4. coordinates the development of draft regulations on the allocation of EU funds;
5. organizes and coordinates the work of the monitoring committees for the
national strategic reference framework, the EEA financial mechanism, ISPA/CF and the
PHARE Joint Committee;
6. prepares and submits to the European Commission in due time strategic reports
including information on the contribution of EU co-funded programmes towards the cohesion
policy objectives;
7. prepares information and reports on the contribution of the operational
programmes co-funded by the European Commission to the implementation of the national
strategic reference framework;
8. performs the functions of a secretariat of Working Group 19 at the Council of
European Affairs and follows the changes in the Cohesion Policy at EU level and their impact
in the Republic of Bulgaria;
9. performs such other functions as may be laid down in a regulation or assigned by
the prime minister or the chief secretary of the Council of Ministers.
� Monitoring of EU Funds Directorate:
1. prepares assessments of the planning and absorption of the funds provided to the
Republic of Bulgaria by the EU, as well as methodological guidance on the implementation of
the existing EU co-funded programs;
2. provides regular monitoring of the work of the units for ex-ante, operational and
ex-post control in the organization of public procurement procedures for the implementation of
EU-funded projects;
3. takes part in the monitoring committees of the operational programmes and the
Rural Development Programme, 2007 – 2013;
4. coordinates the regular reporting procedures under Regulation 1164/94 through
UMIS/ISPA;
5. performs the functions of a National Evaluation Unit of PHARE/Transition
Facility and a contact point of twinning projects;
6. performs the functions of a secretariat of the monitoring committee of the
national strategic reference framework, the monitoring committee of the EEA Financial
Mechanism and the monitoring committee of ISPA/CF (Regulation 1164/94), and the PHARE
Joint Committee;
19
7. performs such other functions as may be laid down in a regulation or delegated by
the prime minister or the chief secretary of the Council of Ministers.
� Information and EU Funds Management Systems Directorate:
1. provides support, management and development of:
а) the Unified Management Information System for management and monitoring of
the funds from the EU structural instruments;
b) LOTHAR;
c) UMIS/ISPA;
d) the planning and management information system;
e) the Single Information Web Portal with general information on the management
of the EU Structural and Cohesion Funds in the Republic of Bulgaria;
2. coordinates the process of entry and update of the information in the systems
referred to in 1 above, preparing methodological guidance;
3. ensures the interoperability of the systems under 1 above with other information
systems used by the administrative structures within the system of the Executive;
4. performs such other functions as may laid down in a regulation or delegated by
the prime minister or the chief secretary of the Council of Ministers.
AFCOS – The coordination of the fight against breaches of law affecting the financial
interests of the European Communities is transferred from the Council of Ministers to the
Ministry of Interior, supported with 10 full-time job positions.
2.5. SUBSTANTIAL MODIFICATIONS WITHIN THE MEANING OF ART. 57 OF REGULATION (EC)
No. 1083/2006 (WHERE APPLICABLE)
Over the reporting period, there have been no substantial modifications under Art. 57 of
Regulation 1083/2006.
2.6. COMPLEMENTARITY WITH OTHER INSTRUMENTS
Demarcation identified and included in the text of OPE:
Demarcation with the Rural Development Programme:
Funding under priority axis 1 of OPE can receive either municipalities with
agglomerations over 2000 PE and/or municipalities included in Annex 7 of OPE. Activities for
construction and improvement of drinking and waste water infrastructure in settlements with
less than 2 000 PE in rural regions other than those listed in Annex 7 are to be financed under
measure “Major services for the rural population and economy” of the Rural Development
Programme.
It is possible to apply with projects for agglomerations including settlements nonlisted
in the implementing programme of Directive 91/271/EEC, as well as settlements nonlisted in
the 33 urban municipalities as per Annex 7 to OPE, if any of the following conditions is
satisfied:
20
1. Presentation of a conceptual project, approved under the Spatial Planning Act, which
establishes that the settlement is over 2000 PE;
2. Presentation of a conceptual project, approved under the Spatial Planning Act, which
examines two options – joint and general treatment and which demonstrates that in a technical
and economical perspective and in terms of affordability for the population its is appropriate to
adopt the joint treatment for a settlement with over 2 000 PE.
Demarcation with the Regional Development Programme:
The financing of water supply and sewerage activities for settlements over 2000 PE
falls under the responsibility of the MOEW and OPE. OP Regional Development finances,
where necessary, only activities relating to construction, reconstruction and rehabilitation of
water supply and sewerage connections and facilities linking major networks to single sites of
the economic and social infrastructure eligible for financing under OP Regional Development.
Instruments ensuring the co-financing of OPE:
On July 11, 2008 the National Assembly adopted the Ratification Act of the Loan
Agreement on a Structural Programming Loan (that will co-finance EU funded projects for the
period 2007-2013) between Bulgaria and the European Investment Bank (promulgated SG. No.
66/2008). The EIB granted the central budget of the Republic of Bulgaria 700 million euro for
the provision of co-financing of projects which are expected to benefit from grants by the EU
over the programming period 2007-2013.
FLAG (Fund for Local Authorities and Governments) provides support to municipalities
for the successful implementation of projects under the operational programmes, by procuring
funds for bridge financing of municipal costs for project proposals. The fund cooperates with
the MAs of the programmes, with the highest percentage of applications for loans coming from
the beneficiaries of OP Regional Development and OPE. In 2009, the fund entered into 15 loan
contracts with municipalities that are beneficiaries under OPE, totalling BGN 11 773 508.41.
The amounts paid to the municipalities under these contracts in the same year stand at BGN
10 049 294. There is good cooperation between the municipalities and the fund. Application and
processing of payment requests are carried out immediately thereby contributing for the
successful implementation of the projects financed under the operational programme.
Measures to avoid double funding in OPE:
The management information system (UMIS) for management and monitoring of the
EU structural instruments in Bulgaria is an essential element of the measures to prevent double
funding across operational programmes. UMIS has been developed in accordance with the
requirements under the European Structural and Cohesion Fund regulations for having in place
reliable management and control systems. The system has been built to meet the specific needs
of Bulgaria – in accordance with the number of operational programmes; it is with controlled
access, the users being designated with special orders of the ministers in charge of European
funds. Developed and put into operation are the modules “Registration”, “Evaluation”,
“Contracts”, “Project Management”, the Payment Request and Financial Report (at contract
level) parts of the Financial Module, and the On-site Checks and Suspected Irregularities parts
of module “On-site Checks and Management of Irregularities”.
In addition to the opportunities provided by UMIS, OPE has also its own mechanism
for avoiding double funding, provided for in the operational programme and in Art. 26(1) of
DCM 121/2007, which functions within the Committee for Selection and Coordination of
Projects.
21
The nominal composition of the committee is designated with Order RD-
651/30.09.2008 of the Minister of Environment and Water. The committee operates in three
panels depending on the priority axis of the operational programme. It includes representatives
of: MA of OPE, IB of OPE, the respective specialised directorates within MOEW and the
Executive Environmental Agency, the managing authorities of the operational programmes, as
well as of the Rural Development Programme and the Fisheries and Aquaculture Programme,
the Ministry of Finance, and representatives of the executive agencies of the pre-accession
instruments. Experts gather information and report to CSCP on the overlapping of OPE
projects, which have passed the evaluation stage and have been proposed for funding, with
other projects and financing sources.
The Committee for Selection and Coordination of Projects operates on basis of Internal
Regulations approved with Order RD-OP-31/2.12.2009 of the Minister of Environment and
Water. It checks each one of the projects proposed for financing for receiving finance from
other EU funds and instruments. The objective of this check is to guarantee that the same
activities are not funded from several sources. If overlapping is established in the financing of a
project or individual activities thereof, the project is removed from the list of projects proposed
for financing from OPE. In the direct award procedures, this check is conducted within the
evaluation of the project proposals by the expert working group through a written procedure.
IN 2009, CSCP held meetings on all procedures announced and conducted under OPE.
According to the reports issued by CSCP, no risk of double finding has been identified.
Furthermore, experts from MA of OPE sit as members on the monitoring committees of the
other OPs thereby providing further guarantees for avoidance of double funding.
2.7. MONITORING ARRANGEMENTS
MONITORING COMMITTEE
The MC of the OPE was set up pursuant to Art. 63 of Regulation (EC) 1083/2006 and
in compliance with the partnership principle.
The members of MC were determined by Order RD-681 of 5.09.2007 of the Minister of
Environment and Water (as amended by Order RD-219 of 19.03.2009 of the Minister of
Environment and Water) in accordance with DCM 182 of 21.07.2006 on the establishment of
the MC of the NSRF and OPs financed by the SCF (last amend. SG No. 103 from 2 December,
2008). The MC of the OPE ensures efficient and qualitative implementation of the programme
by: examination and approval of the criteria for selection of projects for funding; examination
and approval of the annual and final reports on implementation of the programme, other
strategic programme documents and by monitoring the progress on programme’s
implementation.
In 2009, MC of OPE held three meetings with the following results:
1. Fifth meeting (24 March 2009)
• Approved “Concept for award of grants under priority axis 2 of OPE”
• Approved “Criteria for evaluation of projects for construction of regional waste
management systems under OPE”
• Approved “Criteria for selection of projects for closure of municipal landfills under
priority axis 2 of OPE”
2. Sixth meeting (27 May 2009)
22
• Approved 2008 Annual Report on Implementation of OPE
• Presented “Vision for the management of priority axis 1 of OPE”
• Approved “Criteria for evaluation of priority axis 3 of OPE”
3. Seventh meeting (27 November 2009)
• Presented “Measures undertaken to guarantee the sound financial management of
signed grant contracts”
• Approved “Approach and methodology for selection of projects under priority axis
1 of OPE”
• Approved amended “Mechanism for management of priority axis 2 of OPE” in
relation to DCM 209/2009
• Presented “Document on the implementation of priority axis 3 of OPE”
• Presented amendments to the 2009 Indicative Annual Work Programme.
• Approved the 2010 Indicative Annual Work Programme.
INFORMATION SYSTEM FOR MANAGEMENT AND CONTROL OF THE RESOURCES FROM THE EU
STRUCTURAL AND COHESION FUNDS
A centralised information system for management and monitoring (UMIS) of funds
from the SCF of the EU operates in Bulgaria and serves all administrative structures involved
in the management, monitoring and control processes. The information system is fully
implemented as an Internet-based application and has a flexible management system for
individual users’ access to information stored in the system, in accordance with their
administrative rights and obligations. For the purpose of the procedure established by the
Minister of Environment and Water, appointed experts from the IB and MA of OPE have
access rights to certain modules of the UMIS.
The main modules used by the authorized experts include:
Registration. MB experts use the module to enter information on axes 1, 2 and 3, MA
experts – on axis 4;
Financial Module. The experts in the financial departments of the two directorates
enter and process information on axes 1, 2, 3 (IB) and axis 4 (MA).
On-site Checks and Irregularities. Data on committed and reported irregularities
under axes 1, 2 and 3 are entered in the On-site Checks and Irregularities module by the
irregularities officer in IB, and on axis 4 – by the irregularities officer in MA of OPE.
Project Management. The experts in the monitoring departments of the two
directorates enter and process information on axes 1, 2, 3 (IB) and axis 4 (MA).
Information regarding the project management cycle in the different operational
programmes is uploaded in the "Project Management" module. Under OPE in particular,
beneficiaries prepare monthly reports (or a progress report where a payment request is
submitted in the month concerned) which for axes 1, 2, and 3 are checked and uploaded in
system’s Project Management module by experts in IB of OPE – the EU Environment Funds
Directorate (EUEFD). Progress reports to payment requests under axis 4 (monthly reports are
not submitted) are uploaded by experts from MA. The performance of the experts entrusted
with the above tasks is subject to control by an officer designated respectively by the head of
the Monitoring Department in IB or the head of MR Department.
23
The head of the Monitoring Department summarizes the reports and progress reports on
the individual projects and prepares an aggregated monthly report on procedure level. It is
submitted to the MR Department in MA of OPE – the Cohesion Policy for Environment
Directorate (CPED). Experts from the Monitoring and Reporting (MR) Department enter the
report in a special register. The report is checked by experts from MR Department and FMC
(Financial Management and Control) Department of the Directorate. The reports approved by
the head of MR Department are kept in the archive of MA of OPE and are a source of
information for preparation of the annual reports and final report on OPE level.
Progress reports to payment requests on project level for projects under priority
axis 4 of OPE are prepared by experts from the department within the EUEF/IA/CPE
Directorate who have prepared the projects. The reports are provided to the FMC Department
of the CPE Directorate to be included in a payment request on OPE level and are then
submitted to MR Department for checking and registration in the Project Management module
of UMIS.
The entry of data in the system is governed by the User Manual for the SCF UMIS. The
data are entered on a regular basis. Incidental delays are observed in case of replacement of
officers or in other emergency cases.
Profiles of all officers in the EUEF Directorate whose job descriptions and official
duties imply access to UMIS have been elaborated. EUEF Directorate has taken steps for the
creation of profiles also of the other employees with a view to achieving flexibility and
streamlining the work of the directorate.
2.8. NATIONAL PERFORMANCE RESERVE (WHERE APPLICABLE ALSO FOR THE ANNUAL
IMPLEMENTATION REPORT PRESENTED ONLY FOR)
Not applicable
3. IMPLEMENTATION BY PRIORITY
3.1. PRIORITY AXIS 1 “IMPROVEMENT AND DEVELOPMENT OF DRINKING AND WASTE WATER
INFRASTRUCTURE IN SETTLEMENTS WITH OVER 2000 PE AND SETTLEMENTS BELOW 2000 PE
WITHIN URBAN AGGLOMERATION AREAS”
3.1.1 ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS
Information on the physical and financial progress by priority
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Result indicators
Indicator 1:
Population
connected to
WWTP
Achievement 0 0 0
Target
(1) 0 0 0
58.04
%
66.46
% (2)
Baseline
40.5
% (3)
40.5
% (3
40.5
% (3)
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Indicator 2:
Additional
population served
by waste water
projects
(core indicator)
Achievement 0 0 0
Target
(1) 0 0 0
1 295
000
1 845
000
Baseline
45
000
45
000
45
000
Output indicators
Indicator 3:
New and
rehabilitated
WWTP
Achievement 0 0 0
Target (1)
0 0 0 22 65
Baseline 1(4)
1(4)
6(4)
(1) In the OPE target values of all indicators are defined for the years 2010 and 2013.
(2) End of period value aims to measure only the achievements to be completed with financing from OP
Environment 2007 - 2013.
(3) NSI Statistical Reference Book “Environment” – the data are for 2004. Afterwards the NSI published data for
2007 (42.2%) and for 2008 (43.9%)
(4) The baseline value refers to WWTPs completed with financial assistance from ISPA. In 2009 5 WWTP were
constructed
N/A – information not available
QUALITATIVE ANALYSIS
A project proposal was submitted and approved under procedure
BG161PO005/08/1.20/01/06 “Preparation of plans for management of the river basins”
launched on 26.11.2008 under priority axis 1 of OPE, with the Basin Directorates as eligible
beneficiaries and total non-repayable financial assistance at the amount of BGN 36 048 000.00.
The grant for the project proposal was approved with Decision No. 39/16.03.2009 of the head of
MA of OPE. Order No. RD-OP-15 / 07.04.09 of the Minister of Environment and Water for
disbursement of the non-repayable financial assistance under for the procedure has been issued.
Under the procedure BG161PO005/08/1.11/01/04 “Improvement and development of
the waste water infrastructure in agglomerations over 10 000 PE”, launched on 30.09.2008
under priority axis 1 of OPE, 47 municipalities submitted 54 project proposals by the deadline
for submission, which was 19.01.2009.
The procedure BG161PO005/08/1.12/01/07 “Improvement of the drinking and waste
water infrastructure in agglomerations from 2000 to 10 000 PE” was launched on 22.12.2008.
This is a competition-based procedure and the deadline for submission of project proposals was
extended until 05.03.2009 with Order No. 53/20.01.2009 of the Minister of Environment and
Water. By the deadline for submission of project proposals under procedure
BG161PO005/08/1.12/01/07, 114 municipalities submitted 149 project proposals. The
composition of the evaluation committee for evaluation of duly submitted project proposals was
designated with Order RD-OP-10/04.03.2009 of the head of IB.
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The two above-mentioned procedures for infrastructure under priority axis 1 of
OPE were cancelled –procedure BG161PO005/08/1.11/01/04 “Improvement and development
of the drinking- and waste-water infrastructure in agglomerations with over 10 000 PE” was
cancelled with Decision No. 49/02.07.2009 of the head of MA of OPE. Procedure
BG161PO005/08/1.12/01/07 “Improvement and development of the drinking- and waster-water
infrastructure in agglomerations from 2000 to 10 000 PE” was cancelled with Decision No. 50
of the head of MA of OPE. The procedures were cancelled because the requirements to projects
had not been defined in a sufficiently clear and specific manner from the onset of priority axis
implementation. In that light are also the comments of the auditors qualifying the project
evaluation criteria as “unclear and general”. Another main reason for the cancellation is the
character of the procedures, their incompliance with the country’s priorities and the fact that
they are not directly aimed to the fulfillment of the commitments of Bulgaria in the context of
Directive 91/271/EEC. Recommendations have been made for inclusion of key criteria such as
investment value per PE and evaluation of the estimated project deficit for which financing will
be requested, which have not been applied previously in the evaluation of projects.
In consequence of the amendments to the water supply and sewerage sector legislation
and the recommendations for introduction of economic efficiency criteria in the preparation and
evaluation of project proposals, a new approach to the management of priority axis 1 of
OPE was adopted. The Managing authority of OPE developed new approach and
methodology for the management of priority axis 1, including new grant award criteria,
which were submitted to and approved by the Monitoring Committee of OPE on 27
November 2009.
The mechanism introduces requirements for economic efficiency and ecological and
technical appropriateness in respect of the scope of projects that are eligible for funding under
OPE, with a view to guaranteeing the sound financial management and the focus of the limited
resource.
Review of contracts signed under procedure BG161PO005/08/1.10/01/02
“Improvement and development of drinking- and waste-water infrastructure”
In accordance with article 60 of Council Regulation 1083/2006 / 11th
July 2006 laying
down general provisions on the European Regional Development Fund, the European Social
Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999, the Managing
Authority is responsible for the management and implementation of the programme in
accordance with the principle of sound financial management, as well as for the absorption of
funding, compliant with the law. In implementation of the above mentioned the MA should
guarantee the expedient, transparent and effective absorption of public funds, including from
the point of view of the economic effectiveness and regarding the aims of the programme.
In respect of the commitments according to Regulation 1083/2006 and by request of the
European commission (letters from 18 March 2009 and 14 April 2009), the MA undertook an
in-house review of signed contracts for construction under priority axis 1 of OPE resulting in
identification of groups of contracts with different performance-risk levels.
The review was conducted by experts from the Managing Authority (MA) and the
Intermediate Body (IB) of OPE and from the specialised Water Management Directorate within
MOEW. The review of these investment projects aimed to establish:
1. To what extent the project corresponds to the national commitments and
priorities for construction of water supply and sewerage networks and UWWTP, which are
determined by the requirements of Directive 91/271/EEC concerning urban waste-water
treatment;
26
2. The reliability and completeness of the submitted rationale and source
parameters or of the chosen technical solutions for the networks and facilities planned for
construction;
3. To what extent the costs of construction and other project activities are
justifiable and correspond to average market prices
The review of the 29 infrastructure projects under implementation (except for the Vratsa
water cycle project approved by the EC in December 2009), which was completed on
10.01.2010, identified the following irregularities:
• Lack of sufficient technical and/or economic justification of the chosen technical
solution.
• High cost per unit of infrastructure.
• Lack of sufficiently reliable proof of the number of PE
• High costs per one PE or higher prices of some operations.
• Some projects contain a large water supply component or are concerned mainly with
water supply.
• The project concerns an agglomeration which is not of a highest priority in terms of
the commitments under the Directive, i.e. it concerns an agglomeration below
10 000 PE.
Following the review, MOEW held meetings with all beneficiaries at which:
• Additional information and documents were requested;
• The project achievement was established;
• The problems, which the beneficiaries encounter during project implementation,
were identified.
Based on the information provided by the municipalities and on the meetings held,
conclusions were drawn for each one of the projects and specific measures were recommended
for every project, taking into account the additional risk factors identified during the review –
deviation from deadlines, problems with the coordination of submitted public procurement
documents, irregularity alerts, etc.
The review of 158 technical assistance contracts under priority axis 1 of OPE, signed
under procedure BG161PO005/08/1.30/01/01 “Technical assistance for preparation of
investment projects under priority axis 1 of OPE”, was completed on 9.12.2009. To date,
projects at total value of EUR 78 298 884 are under implementation, with payments made to
beneficiaries amounting to EUR 13 634 952. All contracts under implementation were
reviewed by MA of OPE and by the specialized Water Management Directorate within
MOEW. This review aimed to determine whether:
• Projects correspond to the national commitments for the construction of water
supply and sewerage networks and WWTP, determined by the requirements of
Directive 91/271/EEC ЕИО concerning urban waste-water treatment and to the new
management approach for priority axis 1 of OPE;
• The inclusion of certain activities in the project or the scope of included activities
are sufficiently justified;
• The costs of the activities included in the project correspond to market prices.
27
A general remark made in respect of a large number of the project proposals is the lack
of specification of the scope of activities – lack of specific meterage of the water supply and
sewerage network for which the development of an investment project for construction /
reconstruction / rehabilitation is proposed. Consequently, for some project proposals it is
difficult to judge whether the budget planned corresponds to the activities planned. Where it
was evident that the amounts specified for some activities were too high, it was recommended
to reduce them to existing market prices if project implementation continues.
Furthermore, on the basis of a framework agreement, a public procurement contract for
“Audit of project transactions under procedure BG161PO005/08/1.10/01/02
“Improvement and development of drinking and waste water infrastructure” on which
payments under OPE were made” was signed with KPMG Bulgaria OOD on 25 November
2009
In fulfilment of the contract, in the period 25.11.2009 – 10.01.2010, KPMG Bulgaria
OOD audited 15 infrastructure projects (Beloslav, Burgas, Valchi Dol, Glavinitsa, Kavarna,
Sopot, Svoge, Troyan, Popovo, Pernik, Loznitsa, Straldzha, Hissar, and Yablanitsa) under the
procedure.
Within the audit of the transactions of the above infrastructure projects, carried out by
KPMG Bulgaria OOD, the following was checked:
� Compliance of reported expenditure with the procedure and rules described by
MA;
� Effective application of national legislation and EU law in the implementation
of projects and reporting of expenditure under the projects, as well as in the
selection of contractors under the Public Procurement Law and the Ordinance
on the Award of Small Public Procurement Contracts;
� Effective application of the rules issued by the bodies in charge of the
management, monitoring and control of OPE;
� Adequate audit trail and keeping of the project documents;
� Following of the actual performance of activities and expenditure by the
beneficiaries;
� Correspondence between the expenditure to be reimbursed and those stated in
the accounting records and the supporting documents;
� Correspondence between declared expenditure supported with primary
documents and the approved activities planned in the projects;
� Compliance of the supporting documents with the requirements of the Law on
Accountancy and the applicable regulations.
The audits were carried out on the spot at the beneficiaries on basis of the accounting
records available with them, the audit scope covering 100% of supporting documents and
expenditure incurred. The audit of transactions covered also the documents for the planning,
organization and carrying out by the beneficiary of public procurement procedures under the
Public Procurement Law (PPL) and the Ordinance on the Award of Small Public Procurement
contracts, the monitoring carried out by the beneficiary, and the actual performance of the
activities included in the projects.
The audits produced audit reports containing general findings about project implementation
(including financial implementation) and specific findings on the lawful conducting of public
procurement procedures and on the implementation of the grant contracts by the beneficiaries.
With a view to prevent the signing of contracts for unjustified activities, on 20.10.2009
MA of OPE sent official letters to the municipalities that are beneficiaries under priority axes 1
and 2 of OPE, calling upon them to suspend the organization of new public procurement
procedures until the review of projects is completed .
28
The reviews and the analysis resulted in issuing of Decision No. 72/26.02.2010 of the
head of MA of OPE, which pronounced hat:
• The projects below, approved for financing under procedures
BG161PO005/08/1.10/01/02 and BG161PO005/08/1.30/01/01, shall not be financed
from OPE because they are not in accordance with the principles of economy,
efficiency and effectiveness under Art. 27 of Council Regulation No. 1605/2002.
Procedure BG161PO005/08/1.30/01/01 Technical Assistance for preparation of
investment projects under priority axis 1 of OPE
No. Beneficiary Project proposal No. Contract / order No.
Amount of
negotiated
financing
from OPE
(BGN)
1. Municipality Gorna Oriahovitsa 58131-89-89 58-131-С089 143 416.00
2. Municipality Vidin 58131-137-137 58-131-С137 3 398 400.00
3. Municipality Razlog 58131-106-106 58-131-С106 2 455 333.00
4. Municipality Sopot 58131-107-107 58-131-С107 820 720.00
5. Municipality Avren 58131-31-31 58-131-С031 1 487 955.32
6. Municipality Strazhitsa 58131-1-1 58-131-С001 14 500.00
7. Municipality Shabla 58131-126-126 58-131-С126 688 760.00
8. Municipality Dolni Chiflik 58131-156-156 58-131-С156 4 895 312.00
9. Municipality Smolian 58131-159-159 58-131-С159 790 778.00
10. Municipality Kyustendil 58131-93-93 58-131-С093 811 302.00
11. Municipality Asenvograd 58131-78-78 58-131-С078 317 000.00
12. Municipality Smolian 58131-158-158 58-131-С158 1 058 754.00
13. Municipality Dimitrovgrad 58131-117-117 58-131-С117 225 000.00
14. Municipality Pazardzhik 58131-152-152 58-131-С152 766 598.40
15. Municipality Gabrovo 58131-138-138 58-131-С138 319 680.00
16. Municipality Gabrovo 58131-140-140 58-131-С140 215 524.00
17. Municipality Kardzhali 58131-36-36 58-131-С036 73 700.00
18. Municipality Kardzhali 58131-37-37 58-131-С037 87 700.00
19. Municipality Kardzhali 58131-38-38 58-131-С038 92 700.00
20. Municipality Kardzhali 58131-39-39 58-131-С039 67 700.00
21. Municipality Kardzhali 58131-40-40 58-131-С040 343 400.00
22. Municipality Kyustendil 58131-22-22 58-131-С022 643 000.00
23. Municipality Kyustendil 58131-23-23 58-131-С023 755 156.00
24. Municipality Kyustendil 58131-24-24 58-131-С024 785 156.00
25. Municipality Kyustendil 58131-25-25 58-131-С025 853 928.00
26. Municipality Kyustendil 58131-92-92 58-131-С092 734 856.00
27. Municipality Pazardzhik 58131-153-153 58-131-С153 795 786.80
28. Municipality Pazardzhik 58131-154-154 58-131-С154 940 510.80
29. Municipality Targovishte 58131-53-53 58-131-С053 309 597.00
30. Municipality Targovishte 58131-54-54 58-131-С054 304 597.00
31. Municipality Targovishte 58131-55-55 58-131-С055 324 597.00
32. Municipality Targovishte 58131-56-56 58-131-С056 329 597,00
Procedure BG161PO005/08/1.10/01/02 “Improvement and development of drinking and waste
water infrastructure”
No. Beneficiary Project proposal No. Contract No.
Amount of
negotiated
financing
from OPE
29
(BGN)
1 Municipality Dulovo 58111-15-206 58111-C015-206 36 767 285.77
2 Municipality Kaolinovo 58111-25-216 58111-C025-216 21 952 569.80
3 Municipality Kardzhali 58111-51-242 58111_C051-242 1 559 518.78
4 Municipality Svoge 58111-43-234 58111-C043-2343 17 651 268.00
5 Municipality Straldzha 58111-12-203 58111-C012-203 2 163 155,00
• Payments under OPE shall be suspended for the projects below, approved for financing
under procedure BG161PO005/08/1.10/01/02, until a system audit and/or audit of
operations is carried out by the Audit of EU Funds Executive Agency and an audit
report is drawn up – a document required for the verification of the expenditure
included in the payment requests under said projects.
No. Beneficiary Project proposal No. Contract / order No.
Amount of
contracted
from OPE
(BGN)
1 Municipality Valchi Dol 58111-46-237 58111-C046-237 9 193 164.31
2 Municipality Glavinitsa 58111-14-205 58111-C014-205 9 582 865.04
3 Municipality Gorna Oriahovitsa 58111-32-223 58111-C032-223 9 235 929.97
4 Municipality Loznitsa 58111-22-213 58111-C022-213 20 148 589.66
5 Municipality Ruen 58111-87-278 58111-C087-278 40 582 610.00
6 Municipality Sopot 58111-74-265 58111-C074-265 18 010 172.32
7 Municipality Troyan 58111-88-279 58111-C088-279 7 889 673.25
8 Municipality Tundzha 58111-64-255 58111-C064-255 24 583 723.33
9 Municipality Yablanitsa 58111-29-220 58111-C029-220 10 155 601.74
• The projects below, approved for financing under procedures
BG161PO005/08/1.10/01/02 and BG161PO005/08/1.30/01/01, being not in conformity
with the principles of economy, efficiency and effectiveness under Art. 27 of Council
Regulation No. 1605/2002, shall be financed from OPE, but in fulfilment of the
resolution of the minister of environment and water, additional agreements shall be
drawn up to the grant contracts by 10 March 2010.
Procedure BG161PO005/08/1.30/01/01 Technical assistance for preparation of investment
projects under priority axis 1 of OPE
No. Beneficiary Project proposal No. Contract No.
Amount of
negotiated
financing
from OPE
(BGN)
1. Municipality Varna 58131-82-82 58-131-С082 9 134 620.00
2. Municipality Gabrovo 58131-139-139 58-131-С139 250 344.00
3. Municipality Blagoevgrad 58131-76-76 58-131-С076 1 270 547.00
4. Municipality Blagoevgrad 58131-77-77 58-131-С077 238 695.00
5. Municipality Popovo 58131-97-97 58-131-С097 215 499.60
Procedure BG161PO005/08/1.10/01/02 “Improvement and development of drinking and
waste water infrastructure”
30
No. Beneficiary Project proposal No. Contract / order No.
Amount of
contracted
financing
from OPE
(BGN)
6. Municipality Beloslav 58111-28-219 58111-C028-219 21 127 709.00
7. Municipality Blagoevgrad 58111-39-230 58111-C039-230 17 335 768.00
8. Municipality Burgas 58111-17-208 58111-C017-208 16 166 904.00
9. Municipality Burgas 58111-100-291 58111-C100-291 5 363 499.63
10. Municipality Veliko Tarnovo 58111-58-249 58111-C058-249 43 560 616.79
11. Municipality Varshets 58111-113-304 58111-C113-304 5 707 900.00
12. Municipality Kavarna 58111-37-228 58111-C037-228 11 000 339.78
13. Municipality Kazanlak 58111-68-259 58111-C068-259 6 128 896.00
14. Municipality Pernik 58111-105-296 58111-C105-296 33 561 592.58
15. Municipality Popovo 58111-40-231 58111-C040-231 10 017 512.00
16. Municipality Primorsko 58111-86-277 58111-C086-277 19 172 935.00
17. Municipality Sliven 58111-82-273 58111-C082-273 44 072 349.05
18. Municipality Stolichna (Sofia
City) 58111-55-246 58111-C055-246 10 561 037.00
19. Municipality Targovishte 58111-18-209 58111-C018-209 16 009 043.00
20. Municipality Hisaria 58111-53-244 58111-C053-244 22 200 038.28
• Payments under OPE for the projects below, approved for financing under procedure
BG161PO005/08/1.30/01/01, shall be suspended until additional agreements are signed,
linking project preparation with the principles of economy, efficiency and effectiveness
set out in the Approach and Methodology for Selection of Projects under Priority Axis 1
of OPE. The additional agreements are a necessary condition for the carrying out of
verification of the expenditure included in the payment requests for the above projects
and shall be drawn up by 30 April 2010.
No. Beneficiary Project proposal No. Contract / order No.
Amount of
contracted
financing from
OPE (BGN)
1. Municipality Sofia 58131-90-90 58-131-С090 1 465 400.00
2. Municipality Burgas 58131-165-165 58-131-С165 391 640.00
3. Municipality Nesebar 58131-110-110 58-131-С110 2 074 106.70
4. Municipality Haskovo 58131-57-57 58-131-С057 981 326.00
5. Municipality Lovech 58131-2-2 58-131-С002 635 880.00
6. Municipality Razgrad 58131-86-86 58-131-С086 494 010.00
7. Municipality Pomorie 58131-10-10 58-131-С010 1 469 592.00
8. Municipality Kyustendil 58131-94-94 58-131-С094 2 965 260.00
9. Municipality Dupnitsa 58131-128-128 58-131-С128 1 587 000.00
10. Municipality Silistra 58131-30-30 58-131-С030 1 028 400.00
11. Municipality Lom 58131-114-114 58-131С114 927 120.00
12. Municipality Sandanski 58131-96-96 58-131-С096 642 700.00
13. Municipality Troyan 58131-13-13 58-131-С013 3 411 646.00
14. Municipality Parvomay 58131-132-132 58-131-С132 882 400.00
15. Municipality Peshtera 58131-181-181 58-131-С181 1 476 380.00
16. Municipality Botevgrad 58131-15-15 58-131-С015 1 252 547.42
17. Municipality Panagyurishte 58131-72-72 58-131-С072 694 320.00
18. Municipality Hissar 58131-136-136 58-131-С136 1 255 830.00
19. Municipality Cherven Briag 58131-84-84 58-131-С084 1 383 480.00
20. Municipality Kozloduy 58131-91-91 58-131-С091 1 383 480.00
21. Municipality Svilengrad 58131-119-119 58-131-С119 725 222.40
31
22. Municipality Veliki Preslav 58131-32-32 58-131-С032 1 103 520.00
23. Municipality Teteven 58131-60-60 58-131-С060 3 177 000.00
24. Municipality Biala Slatina 58131-108-108 58-131-С108 1 399 800.00
25. Municipality Kostinbrod 58131-144-144 58-131-С144 705 307.00
26. Municipality Etropole 58131-19-19 58-131-С019 1 458 000.00
27. Municipality Lukovit 58131-112-112 58-131-С112 419 600.00
28. Municipality Belene 58131-74-74 58-131-С074 986 000.00
29. Municipality Biala, Ruse 58131-65-65 58-131-С065 1 072 320.00
30. Municipality Knezha 58131-20-20 58-131-С020 1 599 960.00
31. Municipality Sadovo 58131-142-142 58-131-С142 1 980 000.00
32. Municipality Sredets 58131-51-51 58-131-С051 134 225.00
33. Municipality Dolni Dabnik 58131-61-61 58-131-С061 1 159 650.00
34. Municipality Kubrat 58131-131-131 58-131-С131 3 684 000.00
35. Municipality Devnia 58131-46-46 58-131-С046 919 200.00
36. Municipality General Toshevo 58131-43-43 58-131-С043 302 067.00
37. Municipality Momchilgrad 58131-177-177 58-131-С177 261 007.00
38. Municipality Omurtag 58131-85-85 58-131-С085 959 520.00
39. Municipality Svoge 58131-21-21 58-131-С021 916 000.00
40. Municipality Krichim 58131-83-83 58-131-С083 931 200.00
41. Municipality Dolni Chiflik 58131-155-155 58-131-С155 1 965 524.00
42. Municipality Lyubimets 58131-45-45 58-131-С045 368 800.00
43. Municipality Zlatograd 58131-5-5 58-131-С005 662 750.00
44. Municipality Saedinenie 58131-11-11 58-131-С011 709 966.50
45. Municipality Straldzha 58131-27-27 58-131-С027 2 405 300.00
46. Municipality Silistra 58131-29-29 58-131-С029 884 800.00
47. Municipality Burgas 58131-171-171 58-131-С171 479 090.00
48. Municipality Simitli 58131-169-169 58-131-С169 2 268 960.00
49. Municipality Elena 58131-175-175 58-131-С175 650 920.00
50. Municipality Karlovo 58131-116-116 58-131С116 580 800.00
51. Municipality Oriahovo 58131-103-103 58-131-С103 3 524 462.00
52. Municipality Bobov Dol 58131-17-17 58-131-С017 930 000.00
53. Municipality Madan 58131-4-4 58-131-С004 746 400.00
54. Municipality Yakoruda 58131-135-135 58-131-С135 1 342 800.00
55. Municipality Rodopi 58131-150-150 58-131-С150 570 000.00
56. Municipality Belogradchik 58131-146-146 58-131-С146 171 100.00
57. Municipality Belogradchik 58131-147-147 58-131-С147 45 100.00
58. Municipality Varbitsa 58131-123-123 58-131-С123 322 498.00
59. Municipality Godech 58131-68-68 58-131-С068 1 579 397.00
60. Municipality Nedelino 58131-58-58 58-131-С058 1 043 020.00
61. Municipality Laki 58131-8-8 58-131-С008 355 920.00
62. Municipality Maritsa 58131-186-186 58-131-С186 292 450.00
63. Municipality Suvorovo 58131-12-12 58-131-С012 1 064 400.00
64. Municipality Dolna Mitropolia 58131-162-162 58-131-С162 1 141 200.00
65. Municipality Dolna Bania 58131-166-166 58-131-С166 636 500.00
66. Municipality Dve Mogili 58131-64-64 58-131-С064 1 848 720.00
67. Municipality Rodopi 58131-149-149 58-131-С149 339 600.00
68. Municipality Belovo 58131-145-145 58-131-С145 373 176.00
69. Municipality Maglizh 58131-127-127 58-131-С127 812 720.00
70. Municipality Kaspichan 58131-143-143 58-131-С143 430 410.00
71. Municipality Nikopol 58131-104-104 58-131-С104 1 143 060.00
72. Municipality Valchedram 58131-113-113 58-131С113 1 364 760.00
73. Municipality Krividol 58131-50-50 58-131-С050 847 200.00
74. Municipality Mizia 58131-80-80 58-131-С080 679 497.00
75. Municipality Rudozem 58131-44-44 58-131-С044 2 609 840.00
76. Municipality Karlovo 58131-115-115 58-131-С115 559 300.00
77. Municipality Ruse 58131-63-63 58-131-С063 656 400.00
32
78. Municipality Iskar 58131-26-26 58-131-С026 1 424 400.00
79. Municipality Kula 58131-59-59 58-131-С059 552 600.00
80. Municipality Rakitovo 58131-75-75 58-131-С075 514 260.00
81. Municipality Nikolaevo 58131-100-100 58-131-С100 351 500.00
82. Municipality Aksakovo 58131-73-73 58-131-С073 410 400.00
83. Municipality Pazardzhik 58131-47-47 58-131-С047 1 125 480.00
84. Municipality Parvomay 58131-133-133 58-131-С133 735 369.36
85. Municipality Ruse 58131-62-62 58-131-С062 801 181.00
86. Municipality Opaka 58131-70-70 58-131-С070 801 655.20
87. Municipality Pazardzhik 58131-151-151 58-131-С151 515 800.00
88. Municipality Dragoman 58131-69-69 58-131-С069 1 283 133.00
89. Municipality Gurkovo 58131-148-148 58-131-С148 1 328 400.00
90. Municipality Rila, Kyustendil 58131-109-109 58-131-С109 274 730.00
91. Municipality Kaloyanovo 58131-102-102 58-131-С102 1 018 500.00
92. Municipality Panagyurishte 58131-71-71 58-131-С071 224 800.00
93. Municipality Ugarchin 58131-105-105 58-131-С105 920 400.00
94. Municipality Malko Tarnovo 58131-52-52 58-131-С052 1 179 692.18
95. Municipality Pazardzhik 58131-160-160 58-131-С160 692 420.00
96. Municipality Borino 58131-141-141 58-131-С141 799 589.40
97. Municipality Tran 58131-122-122 58-131С122 291 000.00
98. Municipality Asenovgrad 58131-79-79 58-131-С079 595 000.00
99. Municipality Ivanovo 58131-41-41 58-131-С041 739 944.00
100. Municipality Maritsa 58131-188-188 58-131-С188 254 500.00
101. Municipality Maritsa 58131-183-183 58-131-С183 264 450.00
102. Municipality Teteven 58131-99-99 58-131-С099 755 159.40
103. Municipality Borovo 58131-124-124 58-131С124 739 883.00
104. Municipality Gorna Oriahovitsa 58131-88-88 58-131-С088 936 466.06
105. Municipality Maritsa 58131-187-187 58-131-С187 254 500.00
106. Municipality Brezovo 58131-3-3 58-131-С003 568 420.00
107. Municipality Elin Pelin 58131-172-172 58-131-С172 250 000.00
108. Municipality Zemen 58131-167-167 58-131-С167 226 320.00
109. Municipality Troyan 58131-14-14 58-131-С014 1 847 076.00
110. Municipality Straldzha 58131-28-28 58-131-С028 745 900.00
111. Municipality Chiprovtsi 58131-16-16 58-131-С016 173 400.00
112. Municipality Simitli 58131-168-168 58-131-С168 1 324 795.00
113. Municipality Koprivshtitsa 58131-180-180 58-131-С180 903 588.00
114. Municipality Gorna Oriahovitsa 58131-87-87 58-131-С087 835 306.06
115. Municipality Medkovets 58131-81-81 58-131-С081 1 140 000.00
116. Municipality Mezdra 58131-98-98 58-131-С098 361 200.00
117. Municipality Tsenovo 58131-121-121 58-131-С121 755 500.00
118. Municipality Hairedin 58131-125-125 58-131-С125 435 412.00
119. Municipality Boliarovo 58131-101-101 58-131-С101 123 500.00
The corrective measure applied in respect of the infrastructure projects and the
technical assistance will contribute for compliance of the projects with the new mechanism and
will result in savings, which will release financial resource for the priority infrastructure
projects. The sound financial management of the operational programme and the economic
efficiency of public funds spending will be thereby guaranteed.
Regarding the projects, proposed for withdrawal of financing under OPE, the MA and
IB of OPE undertook measures for avoiding the payment of the full amount of the contracted
funds, sending notifications to the municipalities for cancellation of the grant contracts (where
it is possible) and gave recommendations to them to avoid concluding new contracts. The
cancellation of contracts is not always possible due to the fact that a significant part of the
33
projects are in an advanced stage of implementation and the municipalities have already signed
contracts under the Public procurement act. This means that in case a projects cannot be
cancelled, it should be provided with financial resource in order to complete it, because the
municipalities themselves do not possess the necessary funding.
Tasks for development of detailed requirements to projects eligible for financing under
OPE and preparation of implementation schedules for the priority projects in the water and
waste sectors were assigned.
Meanwhile, a review was launched on the project proposals submitted under procedure
BG161PO005/08/1.10/02/04 “Improvement and development of drinking and waster water
infrastructure in agglomerations above 10 000 PE”, which was cancelled in July 2009. The
process involved also assistance from an external consultant appointed by the European
Investment Bank.
3.1.2 SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM
Refer to item 2.3 “Significant problems encountered and measures taken to overcome
them”.
3.2. PRIORITY AXIS 2: IMPROVEMENT AND DEVELOPMENT OF WASTE TREATMENT
INFRASTRUCTURE
3.2.1 ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS
Information on the physical and financial progress by priority
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Result Indicators
Indicator 1:
Population served
by integrated
waste
management
systems
Achievement 0 0 0
Target
(1) 0 0 0
1 983
264
3 967
000
Baseline
467
000
467
000
467
000
Output indicators
Indicator 2:
Constructed and
completed
integrated waste
management
systems
(core indicator)
Achievement 0 0 0
34
Target (1)
0 0 0 12 27
Baseline 5(2)
5(2)
5 (5)
(1) In the OPE, target values of all indicators are defined for the years 2010 and 2013.
(2) The baseline value refers to integrated waste management systems completed with the financial assistance
from ISPA Programme.
N/A – information is not available
* During the reference period there was no physical advance achieved on the OPE indicators.
Therefore, there is no relevant information to be supplied under this item.
QUALITATIVE ANALYSIS
To date, under priority axis 2 of OPE there are 33 contracts under implementation
within procedure No. BG161PO005/08/2.30/01/03 “Technical assistance for preparation of
investment projects”, at a total value of BGN 20 290 060.40; two of them were cancelled. The
first (Municipality Strazhitsa) was terminated because of double financing and the second – at
the request of the beneficiary (Municipality Vidin) with a view to stepping up the process of
applying with investment projects.
On a proposal by the European Commission, the concept for the award of grants under
priority axis 2 was changed. In that light, MA developed a Mechanism to support the
construction of the system of integrated waste management facilities. The funds absorption
approach is based on direct grant award procedures targeted at specific beneficiaries
responsible for the carrying out of the activities for construction of the waste management
infrastructure. The mechanism was approved by the Monitoring Committee at its meeting on
24 March 2009.
On a proposal by the EC and with a view to procuring financing for the construction of
integrated household waste management systems, including facilities for pre-treatment, and for
closure of municipal landfills of household waste, DCM No. 209 was adopted on 20 August
2009. It allocates funds from the national budget for the closure of municipal landfills that do
not meet the requirements and for securing of the pre-treatment of household waste prior to its
depositing in accordance with the requirements of Directive 1999/31/EC. Thus the funds from
OPE can be focused on the construction of the remaining 23 regional integrated waste
management systems.
Furthermore, CoM Decision No. 705/31 August 2009 on approval of the medium-term
financial framework and the basic assumptions for the period 2010-2013 in respect of the own
contribution to be secured by the beneficiaries was approved. According to the adopted
approach, the beneficiaries of the operational programmes are expected to secure in the period
2010 – 2012 5, 8 and 10% respectively of the value of eligible costs as their own contribution.
With a view to reflecting the legislative changes and in relation to the set up of a
reserve fund, MA amended the Management Mechanism for Priority Axis 2. The amended
mechanism provides for allocation of the financial resource among the 23 regions under the
National Waste Management Programme in which regional integrated waste management
system are to be built. The scope of every project is defined so as to meet the minimum
requirements of Directive 1999/31/EC and to support the building of efficient systems which
will subsequently become self-sufficient in terms of the required further investments (for
example, for building additional capacity of the landfills). The reserve fund set up will be
replenished from the savings realized under the individual projects or from missed
opportunities to absorb the allocated funds. To incentivise the beneficiaries to prepare and
implement projects in due time, a deadline for the start of project implementation is introduced.
35
In case of inability or unwillingness to start the necessary preparatory and/or project
implementation activities, the released financial resource will be reallocated via this fund to the
other projects. Meanwhile, the amendments to the document aim to introduce a mechanism for
intensive dialogue between the beneficiaries and MA during the preparation of project
proposals and to bring higher flexibility in setting the maximum grant amounts for the projects,
towards maximum efficient distribution of the limited allocations for the Waste Sector in OPE.
The amended mechanism was approved by the Monitoring Committee at its meeting on 27
November 2009.
In accordance with the 2009 IAWP, the following procedures have been announced to
date under the priority axis:
• BG161PO005/09/2.10/01/13 “Construction of the integrated system of household
waste treatment facilities of Sofia City Municipality”. The project proposal under the
procedure was submitted to MOEW before the deadline and was opened on 23.03.2010
whereby its official evaluation on national level started. The examination continued
until April 2010 and aimed to confirm that the application form and all accompanying
documents meet the requirements set in the call and justify the need of awarding a
grant. Pursuant to Art. 39 of Regulation (EC) No. 1083/2006, on 21 April the project
proposal was sent to the EC for evaluation through the SFC system.
• BG161PO005/09/2.10/02/14 “Construction of an integrated waste management
system in Botevgrad region”. The project proposal was submitted to MOEW on
31.03.2010 and was opened on 19.04.2010 whereby its official evaluation on national
level started.
• BG161PO005/09/2.10/03/15 “Construction of an integrated waste management
system in Pernik region”. The deadline for submission of the project proposal is
15.05.2010.
3.2.2 SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM
The procedures for the construction of the remaining 20 of total 23 regional integrated
waste management systems planned in the 2010 IAWP are not announced yet because the
specific beneficiaries lack projects in the pipeline, mostly due to poor quality of projects,
problems with the scope of the EIA permits and the integrated permits; lack of correspondence
with the scope of the pre-investment studies; the long design period; problems with the sites’
ownership; disagreement by some municipalities with the regional distribution. Best equipped
with projects in the pipeline are the regions Vidin, Burgas, Pleven and Malko Tarnovo. The
regular monthly meetings on OPE started on 7 April 2010. The Managing Authority has initiated
this practice for the municipal administrations preparing projects for the construction of the 23
regional integrated waste management systems scheduled for financing under OPE. During the
meetings, potential beneficiaries present the progress in the preparation of project proposals and
highlight the difficulties they encounter in the preparation. The head of MA and representatives
of the Intermediate Body and of the specialized administration within MOEW answer questions
on specific cases and provide full assistance to the municipalities in the process. The indicative
plans for project implementation in the waste sector are published on the OPE website. MA is
taking measures to speed up the process for their preparation. Currently the provisions show that
all the projects should receive invitations by the end of 2010 and to be contracted in the
beginning of 2011. Problems could be expected with three projects (Kocherinovo, Pazardzhik
and Stara Zagora) whose preparation is serious delay.
36
Also refer to item 2.3 “Significant problems encountered and measures taken to
overcome them”.
3.3. PRIORITY AXIS 3: “PRESERVATION AND RESTORATION OF BIODIVERSITY”
3.3.1 ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS
Information on the physical and financial progress by priority
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Общо
Result Indicators
Indicator 1:
Percentage of
NATURA 2000
(protected zones
and protected
areas) to be
mapped/managed
Achievement 0 0 0
Target (1)
0 0 0 2.6 8
Baseline 0 0 0
Output Indicators
Indicator 2:
Number of
mapped protected
areas and zones of
NATURA 2000
network
Achievement 0 0 0
Target (1)
0 0 0 14 44
Baseline 0 0 0
Indicator 3:
Number of
elaborated
management
plans for
protected areas
and zones of
NATURA 2000
network
Achievement 0 0 0
Target (1)
0 0 0 14 44
Baseline 0 0 0
(1) In the OPE, target values of all indicators are defined for the years 2010 and 2013.
N/A – information is not available
* During the reference period there was no physical advance achieved on the OPE indicators.
Therefore, there is no relevant information to be supplied under this item.
37
QUALITATIVE ANALYSIS
On 24th
of October 2008 the MA of OPE revealed an open call for proposals
BG161PO005/08/3.0/01/05 “Preservation and restoration of the biodiversity in Bulgaria”
under Priority axis 3 with a deadline for submission of project proposals 15th
January 2009.
The total amount of the grant is 13 098 930 leva and it was increased to the amount of 18
956 813 with an Ordinance of the Minister of environment and water. The same Ordinance
extended the deadline for project proposals submission up to 3rd
of February 2009. The aim of
the procedure is preservation and restoration of precious species and habitats, including such
subject of protection of the national ecological network. The procedure contains two
components: Component 1 “Execution of activities in reserves and parks” with eligible
beneficiaries Regional inspections for environment and water, National Parks Directorates,
Nature Park directorates and Component 2 “Execution of activities outside reserves and
parks” with eligible beneficiaries Regional forest directorates, Municipality administrations,
NGOs registered under the relevant law. 76 project proposals were registered under the
procedure and two were withdrawn before the deadline. Graph 1 presents the distribution
among the project proposals by candidate type:
Graph 1:
НПО
18%
ДНП
8%
ДПП
14%Общини
36%
РДГ
5%
РИОСВ
19%
The Head of the IB issued an Order for the appointment of evaluation committee for
the submitted 74 project proposals. The committee was composed by expert from the IB,
Nature protection directorate at MOEW, external evaluators, as well as observers from MA
and CCU. The committee started its work on 24th
of February 2009 and finished on 20th
of
May 2009. The project proposals passed through three stages of evaluation – administrative
compliance, eligibility, technical and financial evaluation. It resulted to proposal for financing
of 24 projects. Graph 2 shows the distribution of the approved projects by beneficiary type
and Graph 3 shows the success rate of the beneficiaries again by type.
38
Graph 2:
НПО
25%
ДНП
17%ДПП
28%
Общини
13%
РИОСВ
17%
Graph 3:
46,15%
66,67% 70,00%
11,11%
0,00%
28,57%
0,00%
10,00%
20,00%
30,00%
40,00%
50,00%
60,00%
70,00%
НПО ДНП ДПП Общини РДГ РИОСВ
It should be mentioned that out of the 74 submitted project proposals, 6 have passed
successfully all stages of evaluation, they have gathered the necessary points, but were not
proposed for financing due to the lack of financial resource.
Seven orders and 16 contracts at a total value of BGN 18 095 521.39 are being
implemented under the procedure. One order for the award of grant to RIEW Pleven was
cancelled.
The following procedures were announced under priority axis 3 of OPE in 2009:
• Procedure BG161PO005/09/3.1/01/08 “Development of NATURA 2000 network”.
Three orders of the Minister of Environment and Water for award of grants at a total
of BGN 27 360 707. 60 are implemented under the procedure;
- Project DIR-59318-1-2 Mapping and definition of the ecological status of habitats
and species – phase 1
Objective – The objective of the project is mapping and determining the ecological
status of habitats and species under Directive 92/43/EC, as well as determining of territories
for construction of wind generators, posing risks for birds under Directive 79/409/EC.
39
- Project DIR-59318-2-3 Elaboration and implementation of information system for
the protected zones from NATURA 2000 network
Objective – The main objective is to support the protection and management of the
ecological network of protected areas in Bulgaria by elaboration and implementation of
information system, assuring possibilities for easier access to the information.
- Project DIR-59318-3-4 National information and communication strategy for
NATURA 2000 network
Objective – The main objective of the project is the elaboration of a national
communication strategy for the ecological network NATURA 2000. This would guarantee the
wide public support and awareness, as well as it will make the objectives of the network
popular. Additional objective of the project is preparation of the public and the stakeholders
for elaboration of a consensus approach for the management of protected areas.
• Procedure BG161PO005/09/3.2/01/09 “Update of the Rila National Park
Management Plan”. An order of the Minister of Environment and Water has been
issued for award of grants at a total of BGN 5 628 467. 56.
- Project DIR-59329-1-7
The project includes examinations and inventory of different aspects such as biological
characteristics, infrastructure etc. The gathered information will be analyzed and the situation
will be evaluated. Based on the analysis and the evaluation, the long-term objectives for the
National park will be determined, as well as the priorities, the projects and the tasks will be
set. The Geographic information system of the Park will be updated and completed. Based on
that, several thematic maps will be generated.
• Procedure BG161PO005/09/3.2/02/10 “Development of Bulgarka Natural Park
Management Plan”. A Decision of the head of MA has been issued for award of grant
under the submitted project proposal, at a total of BGN 1 975 462.00. Signing of a
grant award contract for the submitted project proposal is pending.
- Project DIR-593210-1-5
The project includes elaboration of a digital database, development of the main topographic
layers; proceeding and inclusion of a specific information within a geographic database;
inventory of biotic components of the plan (such as flora, fauna, ecosystems etc.); inventory
of abiotic components of the plan (such as climat, geology and geomorphology, soil etc.);
elaboration of cultural and socio-economic characteristic of the plan’s objectives; analysis of
tourism, sport, recreations and services and therefore elaboration of a Management plan.
• Procedure BG161PO005/09/3.2/03/11 “Development of Belasitsa Natural Park
Management Plan”. A Decision of the head of MA has been issued for award of grant
under the submitted project proposal at a total of BGN 1 161 974.68. Signing of a
grant award contract for the submitted project proposal is pending.
• Procedure BG161PO005/09/3.2/04/12 “Update of the Central Balkan National Park
Management Plan”. An order of the Minister of Environment and Water has been
issued for award of grant at a total of BGN 2 362 434.55.
- Project DIR-593212-1-8
The Project includes cadastre activities, activities related to the geographic information
system; description of the gathered information, evaluation and planning.
To date, 16 contracts for the award of grant and 12 orders of the Minister of
Environment and Water at a total of 53 447 131.10 are being implemented under the priority
axis.
40
The 2009 IAWP provided for announcement of a competition-based procedure for
“Preservation and restoration of biodiversity”. The announcement was put off because of a
need to amend DCM 121/2007, which stipulates that evaluation committees for competition-
based procedures shall be set up by an order within 10 days after the deadline for submission of
project proposals. Within OPE, responsible for the evaluation of project proposals, including
for setting up a working group, is IB. After the structural changes in MOEW whereby the head
of IB of OPE is placed at the same footing as a director of a directorate, this provision cannot
be complied with. MA of OPE has taken measures to include the relevant proposal in the
package of amendments to DCM 121/ 2007.
Regarding the procedure for direct award of grants for elaboration of action plans for
endangered species, laid down in 2009 IAWP, the delay is due to the fact that an option to
include in the scope of the procedure a component to be implemented by the Executive
Environmental Agency (EEA), which is not yet placed on the list of specific beneficiaries, is
under consideration. It is expected that after the amendments to DCM 121/31.05.2007 the
wording of the specific beneficiary definition will allow EEA’s inviting.
Detection and prevention of double funding is also a significant problem as regards the
projects under priority axis 3. Funds for preservation of biodiversity are allocated under many
programs by different donors, often other than the European structural and pre-accession
instruments. Towards detection and prevention of double financing, MA holds meetings with
the Committee for Selection and Coordination of Projects and takes part on a regular basis in
other mechanisms for detection and prevention of double financing. Representatives from the
MA/IB are participating in horizontal mechanisms that have inter alia this goal. For example
they are taking part of Working groups and Expert groups such as the Expert group for
transparency within the State fund Agriculture – Paying agency. Other instruments, such as th
Norwegian programmes, submit projects to the MA for external coordination.
At the latest meeting of the Monitoring Committee on 27. 11. 2009, MA of OPE
undertook a commitment for the development of a Mechanism on Biodiversity.
3.3.2 SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM
Refer to item 2.3 “Significant problems encountered and measures taken to overcome them”.
3.4. PRIORITY AXIS 4: TECHNICAL ASSISTANCE
3.4.1 ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PROGRESS
Information on the physical and financial progress by priority
There is no relevant information to be supplied, because there are no defined indicators
under priority axis 4 in the OPE.
QUALITATIVE ANALYSIS
Internal Rules for Direct Award of Grant under Priority Axis 4 “Technical Assistance” of
OPE were approved with Order No. RD-183/14.03.2009 amending Order No. № RD-
86/14.02.2008 of the Minister of Environment and Water.
In 2009, 12 orders of the Minister of Environment and Water for direct award of grant
under priority axis 4 “Technical Assistance” at a total of BGN 3 803 552.60 (EUR 1 944 725.56)
41
were approved. The amount of payments under projects stands at BGN 1 094 405.74 (EUR
559 560.77), and total payments as of 31.12.2009 stand at BGN 1 376 133.63 (EUR 703 605.95).
The 12 project proposals prepared and approved under priority axis 4 are in line with the
activities included in the Strategic Plan for Technical Assistance, 2007 – 2013:
• A camera was purchased for BGN 466 (EUR 238.26) for the needs of documenting
the OPE-related events. The project is completed.
• One project for translation and interpreting, including simultaneous and consecutive
interpreting, for the needs of OPE was prepared and approved towards providing
assistance to the staff. The project budget is BGN 288 000 (EUR 147 252.06).
• Towards enhancing the administrative capacity of the Cohesion Policy for
Environment Directorate and the EU Environment Funds Directorate, two project
proposals for participation of experts from the two directorates in seminars, courses
and working meetings were approved. The total value of the two projects is BGN
1 975 141.60 (EUR 1 009 873.86).
• One project proposal at a value of BGN 498 000 (EUR 254 623.35) was prepared
and approved for the organization and holding of the meetings of the Monitoring
Committee
• Measures to enhance the administrative capacity of the Internal Audit Directorate
included participation in courses organized by the Institute of Internal Auditors
Bulgaria and in training on “Audit of funds under EU programmes”. The value of the
two projects is BGN 13 180 (EUR 6 738.82).
• A round table (seminar) was organized for the presentation of a concept for
development of the waste management infrastructure through OPE. The project with a
budget of BGN 12 240 (EUR 6 258.21) is completed.
• A project with a budget of BGN 132 000 (EUR 67 490.52) was approved for
undertaking an evaluation of the efficiency of completed procedures for selection of
project proposals under priority axes 1, 2 and 3 of OPE.
• A decision to organize trainings was taken with a view to ensuring the awareness of
the beneficiaries under OPE. The project was approved in 2009 and its budget is BGN
574 290 (EUR 293 629.81). Trainings started in March 2010.
• A project with a budget of BGN 285 441 (EUR 145 943.66) was prepared and
approved for undertaking an analysis of the priority of project proposals under
priority axes 1 and 2 of OPE and for purchase of Microsoft Project and Autocad
software with a view to making use of the analysis results.
• A consultant was selected on public relations, integrated marketing communications,
publicity and development of branding strategies and organization, holding and
monitoring of a major public event. The project budget is BGN 32 660 (EUR
16 698.79).
In 2009, continued the implementation of the project for the carrying out of evaluation and analysis of the administrative capacity of the MA of OPE. The contract concluded in March 2010. The main activities within the project were the update of the Organizational Development Strategy, preparation of Human Resources Strategy and development of Training Plan for the Cohesion Policy for Environment Directorate for the period 2010-2012.
The Human Resources Development Strategy of CPE Directorate for the 2010-2012
period was designed on the basis of in-depth human resource and administrative capacity
analysis. The document outlines several proposals:
42
• Staff number should not be changed, but employees from less burdened units
should be channeled to the more burdened units, as well as filling the vacant
positions;
• The development of the necessary techniques; the necessity of updating the
functional and job descriptions; attracting high-skilled employees with professional
and technical skills in the identified fields for improvement (i.e. engineers, jurists);
compliance with the ratio between newcomers and experienced staff in order to
avoid uneven workload; continuing the specialized trainings that increase the
employees capacity; exchange of information, experience and practices.
In the Strategy are summarized the results from a staff motivation survey. On this basis
motivation fields were defined, as follows: fields with a positive impact and fields with a
negative impact, requiring caution by the Leadership. There are proposals for increasing the
motivation, including an analysis on attracting suitable candidates; identifying vacating reasons
by exit interview questionnaires, binding remunerations with individual achievements, as well
as providing extra payments under the Council of Ministers Decree 249/2007; review of the
appraisal system;
On the basis of the conclusions from the Human resources and Administrative capacity
analysis of CPE Directorate the Detailed Training Plan for the 2010-2012 period was
developed. Training needs are defined per departments, including the Program Evaluation
division, and are prioritized following an expertise assessment. The aim of the Plan is to
provide differentiated and expedient measures for acquiring new skills for practical application
and to develop the managing capacity of CPE Directorate. It is based on the following
principles:
• continuous learning and career development of all staff under equal access and
equal opportunities;
• principle of knowledge management – creation, sharing and keeping the knowledge
in the Directorate;
• acknowledgement that training is not equal to giving an information, i.e. an
emphasize on practical trainings must be under consideration;
• compliance with the nature of the job, aims and tasks of the employees in the
different departments.
The Content of the Detailed Training Plan includes the following elements;
1. Modules (topics) – they are formulated and grouped according to the basic processes in
OPE cycle and according to the identified fields of trainings the staff needs;
2. Target group – they are identified on the basis of questionnaires on specific training
needs of the staff by departments;
3. Linkage – it is defined according to the time period of the Plan and the requirements of
MA;
4. Distinction – compulsory short-term trainings up to 2010, compulsory mid-term
trainings up to 2011 and advisable long-term trainings up to 2012.
5. Expected results – they are set at the exit of each training (acquired skills and
knowledge, practical experience) which can be used for evaluation of the efficiency of
the training;
6. Provider of trainings – there is distinction between internal trainings (provided by
employees within the MA) and external trainings (conducted by outer organizations )
7. Advisable minimal length – it is defined on the basis of comparable trainings in
Bulgaria and abroad
Indicative financial cost – it includes remuneration of the lecturers, participation fees, and
logistic expenditures, calculated according to the Ordinance on Business Travel Inside the
Country and the Ordinance of Business Travel and Specialisation Abroad.
43
3.4.2 SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM
A major problem in the implementation of projects and absorption of funds under
priority axis 4 Technical Assistance is presented by the complex and time-consuming
procedures under the Public Procurement Law. Long terms and the appeals before various
instances delay for months the start of activities under the approved projects. The main process
of announcement and conducting of public procurement and the forthcoming awarding of the
implementation (signing of contracts with the Contractors) in the context of the constant
changes and amendments in the legislation in this field, as well as the coordination process
within MoEW administration, additionally burdens the practical implementation of the
activities under the projects. There are no rare cases in which the deadline for project
implementation appears to be not enough, because of the delay of the public procurement
procedures, which imposes its extension by issuing a new Decision by the Head of the MA and
new Order by the Minister of Environment and Water.
Having in mind the amendments in the Public Procurement Act, the MA has sent
opinion on the proposed amendments, but not all the remarks were taken into consideration.
In order to facilitate the implementation of projects within priority axis 4, the MA is
planning to elaborate internal procedures clarifying and simplifying the process, as well as to
elaborate a strategic plan for the use of funds in order to improve the planning, including the
public procurement procedures.
4. ESF PROGRAMMES: COHERENCE AND CONCENTRATION
Not applicable.
5. ERDF/CF PROGRAMS: MAJOR PROJECTS (WHERE APPLICABLE)
Regarding the forthcoming change in the Regulation and according to the indicative
budgets, laid down in the Water and Waste mechanisms, no major projects are being prepared
within OPE. One water project (Plovdiv) and two waste projects (Kocherinovo and Stara
Zagora) are within the range of 25 million euro, but after the changes become fact, it will no
longer be a major project.
Below is a summary of the progress on the projects within the meaning of Art. 39 of
Regulation (EC) No. 1083/2006:
1. With Opinion No. 1/27.11.2008 of the head of MA, two major water infrastructure
development projects under priority axis 1, included in Decision No. 29/27/11.2008 for
approval of the report of the Committee for Selection and Coordination of Projects, were
approved for sending to the EC;
2. Sofia Municipality has been invited to submit a project proposal for the construction
of household waste management infrastructure in the capital city.
1.1. Vratsa Integrated Water Cycle Project
On 16.12.2008, the Vratsa Integrated Water Cycle Project was sent to the EC via the
SCF system. A letter from EC was received on 18.12.2008, stating that the Vratsa
Municipality project was registered with number CCI2008BG161PR003 and the conducted
review established that it met the requirements of Art. 40 of Regulation 1083/2006/EC and was
44
eligible for further examination. The project was approved on 17 December 2009 with a
decision of the European Commission.
The grant contract between MOEW and Vratsa Municipality was signed on 21
December 2009. The grant amount is BGN 123 523 616.01 and the project is scheduled for
completion in January 2016.
The project will contribute for cutting drinking water losses down from 88% to 23%,
for supply of drinking water according to the standards laid down in the Drinking Water
Directive (98/83/ЕЕС), for compliance with the European legislation, in particular the Urban
Waste Water Directive (91/271/ЕЕС), for cutting down the water supply and sewerage network
operation and maintenance costs.
The activities set out in the project include:
• Survey and design;
• Technical assistance;
• Publicity;
• Building supervision.
• Reconstruction and rehabilitation of 77 749 m of water supply network;
• Reconstruction and rehabilitation of 8 057 m of main collectors;
• Reconstruction and rehabilitation of 13 112 m of secondary sewerage network;
• Extension of the collector network by 25 524 m to the quarters Bistrets and Kulata and
to streets in the town of Vratsa;
• Rehabilitation of 8 057 m of the existing collector network in Vratsa;
• Survey, design and reconstruction of the water main of 33 312 m from Strechenska
Bara Dam Lake to the town of Vratsa;
• Complete rehabilitation of WWTP with new mechanical and electrical equipment,
construction of buildings;
The public procurement procedures for project design, construction etc. are currently
under preparation.
Part of the streets (within the project for sewerage network renovation) has already a
newly constructed one and the municipality is offering to replace them with others.
A statement of IB’s Ex-ante is expected, due to remarks on the submitted tender
documentation. The contract will be annexed due to budget changes (Project management
team). The schedule will be revised as well.
1.2. Gabrovo Integrated Water Cycle Project
On 8.12.2008, the Gabrovo Integrated Water Cycle Project was sent to the EC via the
SCF system. A letter from EC was received on 12.12.2008, stating that the project was
registered with number CCI2008BG161PR002 and the conducted review established that it met
the requirements of Art. 40 of Regulation 1083/2006/EC and was eligible for further
examination. The project was approved on 18 February 2010 with Decision No. 1052 of the
European Commission.
The grant contract between MOEW and Gabrovo Municipality was signed on 23
February 2010. The awarded grant amount is BGN 117 447 251.19 and the project is scheduled
for completion in July 2015.
45
The project aims to contribute for cutting technical water losses in the water supply
network down 73% to 39%, for improving the quality of water supply and sewerage services in
the town, for eliminating the health risks for the population caused by the pollution of the
Yantra River. A water inlet to the waste-water plant is scheduled for construction. The project
is expected to contribute for improvement of the eco systems and for cutting down the water
supply and sewerage system operation and maintenance costs.
The activities set out in the project include:
• Survey and design;
• Reconstruction of the drinking water treatment plant;
• Repair of 4 pump stations and construction of one new station;
• Rehabilitation of 75.8 km of water supply network;
• Extension of the sewerage network by 18.5 km of gravity canals;
• Rehabilitation of 21.6 km of existing sewerage system and replacement with a new
system;
• Reconstruction of a waste-water treatment plant with a capacity of 99 780 PE;
• Publicity;
• Building supervision.
In fulfillment of the requirements of Art. 29 (5) of DCM 121/2007, on 4.12.2009 MA of
OPE submitted the information required pursuant to Art. 40 of Regulation 1083/2006/EC to
CCU for forwarding to the EC.
Planned actions:
• Changing the type of purification – from aerobic to anaerobic;
• Changing the budget as well as the timetable for tender procedures
• Selection of strategy for carrying out a tender procedure: from 3 different procedures to one (for saving money) or to 3 independent positions. The last would lead to a change respectively in the project proposal.
Тhe dossier for supervision, technical assistance and publicity were sent to the Public
Procurement Agency.
The announcement of public procurement procedure for supervision is crucial for
chronology of public procurement procedures.
Forthcoming activities: accomplishment of the work on the dossier for WWTP and
sending it for coordination together with updated timetable and the budget. In the process of
preparation for launching the tendering procedures, the municipality has undertaken an analysis
of the type of sludge treatment which has shown that due to the size of the agglomeration and
the characteristics of the project, it will be more appropriate to apply anaerobic stabilization
thus requiring. The necessary information for modification of the EC decision has been sent in
this respect that may reflect in delays of the WWTP construction phase.
2. Sofia Integrated Waste Management System Project
On 16 December 2009, Sofia Municipality was invited to submit a project proposal for
the construction of household waste management infrastructure in the capital city. The
indicative budget set out under OPE for the activity is BGN 256 265 129.21. On 27 February
2010 Sofia Municipality submitted its project with a total budget of BGN 359 435 408. The
46
balance up to this amount at BGN 103 m will be procured by Sofia City Municipality via a loan
from the European Investment Bank.
Following an evaluation by IB of OPE, on 21.04.2010 the project was sent to the
European Commission via the SFC system.
The activities eligible for financing for the construction of the Sofia integrated waste
management system include design and construction of waste MBT (mechanical and biological
treatment) installations, a non-hazardous waste disposal site and a waste composting
installation, as well as construction of the conveying technical infrastructure needed for the
operation of the equipment included in the system. The project is expected to contribute for
reduction of the quantity of waste disposed by 60%.
Because of its significance, this project has been given a priority status in the new
National Waste Management Programme 2009 - 2013.
6. TECHNICAL ASSISTANCE
Refer to item 3.4. Priority Axis 4 “Technical Assistance”
7. INFORMATION AND PUBLICITY
During the period of reporting series of communication measures have been
implemented in order to raise the awareness about OP Environment and financing provided by
the European Union.
TV AND RADIO
Video and audio spots have not been elaborated for the purposes of OP Environment.
The Head of OPE Managing Authority and the Minister of Environment and Water participated
in three broadcasts – two on Darik Radio Blagoevgrad and one on BTV.
PRINTED MEDIA
The public events and the press releases have brought about 523 publications and 2
interviews in the printed and the electronic media.
The intensive interaction and cooperation with the representatives of the mass media is a
priority of MA of OPE. The media are a major communication channel for outreach to the
general public target group. In the process of work, active support has been provided to the
mass media representatives interested in covering OPE.
Towards improved communication with the media representatives, a special e-mail
address [email protected] has been created. Authorized access to it has all staff
members of the Programming, Partnership, Information and Publicity (PPIP) Department. This
initiative enables quick feedback of journalists in writing. A contact list of leading central media
journalists covering OPE-related topics has been drawn up towards active communication.
All OPE-related news are published in the specialized OPE website and most of them
also in the MOEW website at www.moew.government.bg as well as in the official portal of the
Structural Funds at www.eufunds.bg.
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PRINTED MATERIALS
Printed materials have not been elaborated and distributed for the purposes of OPE. It is
envisaged such materials to be printed and distributed in 2010.
OPE WEBSITE
The Managing Authority maintains the OPE website at www.ope.moew.government.bg.
OPE website has 13 sections. New sections have not been created in 2009.
In 2009, further 71 pages were developed and added to the existing 441 pages.
Over the period 01.01.2009 – 31.12.2009, 33 781 unique visits were registered against
30 000 in 2008.
The most visited headings in the website include news, approved projects, documents.
Pursuant to Regulation 1828/2006, the website of OPE contains a regularly updated list
of beneficiaries:
Under the provisions of Commission Regulation (EC) 1828/2006, the MA ensured flying the
flag of the EU for one week starting 9 May 2009 in front of the premises of the MA.
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INFORMATION EVENTS
The following events have been held with ERDF financing:
• Round table (seminar) to present the new mechanism for construction of infrastructure in the waste sector under OPE, 16 April 2009, Sofia
Participants 83 people - representatives of the 23 regional integrated waste management
systems, NAMRB, advisors to the cabinet of the vice premier in charge of the management of
EU funds, the minister of environment and water, MOEW, consultants, JASPERS, EC, and the
media.
• Major information event, 3 December 2009, Sofia.
The progress on OPE and upcoming steps were presented. 126 people took part in the event,
including representatives of the European Commission, the National Assembly, the Council of
Ministers, the Ministry of Finance, NAMRB, municipal administrations and representatives of
16 media.
Successfully implemented projects with funding from OP Environment were presented: the
project of Beloslav Municipality “Construction of a sewerage network and a collector system
to the existing UWWTP – Beloslav” and the project of Razlog Municipality “Development of
an investment project for Regional Landfill – Razlog and a waste pre-treatment enterprise”.
Owing to the continuous dialogue between MOEW experts and the beneficiaries of OPE,
measures to simplify the procedures were undertaken, aiming to facilitate beneficiaries in the
process of implementation of their projects under the programme. The head of IB of OPE
presented the main points of: project implementation reporting, coordination of the documents
for the organization of public procurement procedures and the procedures for reimbursement of
funds.
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Other events:
• Info Days under procedure BG161PO005/08/1.12/01/07 “Improvement and
development of water and wastewater infrastructure for agglomerations with from 2 000 to 10
000 population equivalent”, 29 - 30 January 2009, Sofia, with the participation of mayors and
experts from municipal administrations, experts from MA and IB of OPE and experts from the
specialized directorates within MOEW. Participants – 29 people.
• Open Day, 3 February 2009, Sofia, to present the OPE performance results and the
main points of the work in 2009. Participants 34 people – including deputies, representatives of
CoM, NAMRB, municipal administrations, branch organizations, NPOs, media, potential
beneficiaries, the general public.
• Consultations for OPE beneficiaries
During the second phase (2009-2013) of implementation of the OPE Communication
Plan, specific information has to be provided to the potential beneficiaries on the utilization of
the Structural and Cohesion Funds, in particular on the implementation of OPE. Furthermore,
the beneficiaries, whose projects have been approved for financing, have to be provided with
detailed information on their obligations with a view to ensuring the successful implementation
of the projects and of the programme in general.
In that light, OPE consultation days are launched in MOEW for regular consultations on
all issues arising during the implementation of projects.
Consultations are held on Thursdays starting from 1 October 2009. Total 12
consultation days were organized by the end of 2009. Participants included 87 representatives
of municipal administrations and non-governmental organizations, OPE beneficiaries. The
consultation days are organized and held by MA and IB of OPE with the participation of
experts from the two directorates.
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DEVELOPED AND DISTRIBUTED PROMOTIONAL MATERIALS
The Managing Authority of OPE has assigned the design and has disseminated the
following materials supported by the ERDF under OPE:
▪ Folder – with the logos of EU, ERDF, CF, OPE, NSRF – 200 pcs;
▪ Notepad – with the logos of EU, ERDF, CF, OPE, NSRF – 200 pcs;
▪ Pen – bearing the printed OPE website – 200 pcs;
▪ Bag – with the logos of EU, ERDF, CF, OPE, NSRF – 200 pcs;
▪ T-shirt – with the logos of EU, OPE – 200 pcs,
▪ Gift souvenir – tulip – with the logos of EU, ERDF, CF, OPE, NSRF – 200 pcs;
▪ Vertical banner – with the logos of EU, ERDF, CF, OPE, NSRF – 1 pc;
▪ Vinyl panel – with the logos of EU, ERDF, CF, OPE, NSRF – 1 pc;
▪ Chocolate bar – with the logo of OPE – 1080 pcs.
Samples of the promotional materials are kept in the PPIP Department of the CPE
Directorate within MOEW.
ABSORBED FUNDS
In 2009, payments for implementation of the information and publicity measures amount
to Euro 9 055, 06, including Euro 7 696, 80 from the ERDF and Euro 1 358, 26 of national co-
financing, with the following breakdown by project:
• Project ТА-2008-KPOS-PPIP-25 “Translation and interpreting, including simultaneous
and consecutive interpreting, for the needs of Operational Programme Environment,
2007 – 2013” – Euro 549, 13.
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• Project ТА-2009-KPOS-PPIP-29 “Round table (seminar) to present the new mechanism
for construction of infrastructure in the waste sector under OPE” – Euro 5 928.
• Project ТА-2009-KPOS-PPIP-38 “Selection of a consultant on public relations,
integrated marketing communications, publicity and development of branding strategies
and organization, holding and monitoring of a major information event for presentation
of 2009 OPE implementation” – Euro 2 577,93.
PARTNERSHIP
The beneficial cooperation and long-term partnership with the European Commission
continued also in 2009.
The partnership principle is very important for the implementation of OPE. The
Managing Authority uses its partners as multipliers of information directed to OPE
beneficiaries and to the general public. During 2009, MA organized several events with the
participation of different stakeholders. In February was organized an Operational Programme
Environment OPEN DAY under the initiative of Mrs. Meglena Plugchieva, Deputy Prime
Minister. The event was part of the consistent policy of the government for transparency in the
absorption of EU funds. The OPEN DAY provided a possibility to beneficiaries,
representatives of the media and other stakeholders to receive information and participate in an
open public discussion in relation to OPE management and implementation.
In April 2009 a round table was held, on the new mechanism for construction of waste
infrastructure under OPE. Representatives of the European Commission and JASPERS
participated in the event, as well as the Cabinet of the Deputy Prime Minister responsible for
the management of the EU funds, the National Association of Municipalities in the Republic of
Bulgaria, municipalities from the 23 regions, where regional waste management systems shall
be developed, consultants and the media. The waste management policy in Bulgaria, the new
waste mechanism and the JASPERS experience in implementing projects in the waste sector
were presented.
In November 2009 the Deputy Minister of Environment and Water Mrs. Ivelina
Vasileva, and the Head of Managing Authority of OPE, Mrs. Malina Kroumova took part in the
ХХХІІІ Assembly of the Bulgarian Association of Municipal Environmental Experts
(BAMEE). In her opening address she said that Partnership is the key to implementing
successful European projects. She informed the audience about the simplified procedures,
reduced time periods and transparency of selection and management of OPE funded projects.
The issues that attracted the greatest attention of the audience were those of building of
infrastructure in the water and waste sectors. Mrs. Krumova presented the new mechanism for
infrastructure development in waste management, and also the new vision for selection of
water projects.
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IMPLEMENTATION OF OPE COMMUNICATION PLAN
Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total
Indicator 1 Number of video spots
created for the purposes
of OPE
Achievement 0 0 0
Target 0 0 0 0 1 1 2
Baseline 0 0 0
Indicator 2
Number of audio spots
created for the purposes
of OPE
Achievement 0 0 0
Target 0 0 0 0 1 1 2
Baseline 0 0 0
Indicator 3 Number of broadcasts
Achievement 0 2 3
Target 0 2 3 5 20 25
Baseline 0 0 2 5
Indicator 4
Number of articles in
national/local
newspapers/magazines
Achievement 35 250 523
Target 30 250 500 500 1400 1 500
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Baseline 0 35 285 808
Indicator 5
Number of interviews
arranged
Achievement 0 5 2
Target 0 5 5 5 150 200
Baseline 0 0 5 7
Indicator 6
Number of printed
materials disseminated
Achievement 0 0 0
Target 0 0 0 2000 2500 3 000
Baseline 0 0 0 0
Indicator 7 Number of sections
created on OPE website
Achievement 0 13 0
Target 0 10 0 0 15 15
Baseline 0 0 13 13
Indicator 8
Number of pages created
on OPE website
Achievement 0 441 71
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Target 0 400 60 30 500 500
Baseline 0 0 441 512
Indicator 9
Number of information
events carried out
Achievement 0 3 2
Target 0 3 3 13 25 30
Baseline 0 0 3 5
Indicator 10
Number of invitations
sent
Achievement 0 364 143
Target 0 300 500 800 2200 3 000
Baseline 0 0 364 507
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ABBREVIATIONS USED
CA Certifying Authority
CF Cohesion Fund
CP Communication Plan
CPE Cohesion Policy for Environment
CSCP Committee for Selection and Coordination of Projects
DCM Decree of the Council of Ministers
EBRD European Bank for Reconstruction and Development
EC European Commission
EEA Executive Environmental Agency
EIB European Investment Bank
EPA Environment Protection Act
ERDF European Regional Development Fund
ESF European Social Fund
EU European Union
EUEF EU Environment Funds
FMC Financial Management and Control
IA Internal Audit
IAWP Indicative Annual Work Programme
IB Intermediate Body
IIPFEUIFI Implementation of investment projects with funding
from EU and international financial institutions
MA Managing Authority
MC Monitoring Committee
MF Ministry of Finance
MOEW Ministry of Environment and Water
MR Monitoring and reporting
NAMRB National Association of Municipalities in the Republic
of Bulgaria
NSI National Statistical Institute
NSNP National Service for Nature Protection
NSRF National Strategic Reference Framework
NWMP National Waste Management Programme
OP Operational Programme
OPE Operational Programme Environment, 2007 – 2013
PME Programme Management and Evaluation
PPIP Programming, partnership, information and publicity
PPL Public Procurement Law
PPP Public-private partnership
PPTPSC Preparation of projects, tender procedures and signing of
contracts
SCF Structural and Cohesion Funds
SF Structural Funds
SFA State Forestry Agency
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SG State Gazette
SPA Spatial Planning Act
UMIS Unified Management Information System
VAT Value Added Tax
WG Working Group
WMA Waste Management Act
WWTP Waste-water Treatment Plant