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SL9905.01Project:

Title: Support to the implementation of the CAP and harmonisation of internalmarket legislation

Sub-ProgramlIJe: Reinforcement of the capacity to adopt and apply the Acquis

Location:

SLOVENIA (Ministry of Agriculture, Forestry and Food)

1. Objectives

This programme addresses all short-term priorities of the accession agenda (and prepares actiontowards medium-term priorities), notably -as specified in the Regular Report of Commission onSlovenia's Progress towards Accession -Agricultural Policy and the Accession Partnership Document(AP) prepared by the European Commission and reconfirmed by the Slovenian NP AA:

(

-Reinforcement of institutional alld administrative capacity: development and.implementation of agricultural and regional policies, the reinforcement of food controladministration;-Agriculture: establishment of a functioning land registry, strengthening of structural and ruraldevelopment policy including alignment with the agricultural acquis, (i. a. veterinary andphytosanitary measures, in particular external border controls), attention to environmentalaspects of agriculture and biodiversity; development of the capacity to implement and enforcethe CAP; in particular the fundamental management mechanisms and administrative structuresto monitor the agricultural markets and implement structural and rural development measures,adoption and implementation of the veterinary and phytosanitary requirements, upgrading ofcertain food processing establishments and testing and diagnostic facilities, restructuring of theagro-food sector.

In line with the above general objectives the PHARE 1999 Programme for the Agricultural Sector willspecifically aim at establishing and/or reinforcing institutions necessary for implementation andenforcement of the CAP. The main goals and objectives are jncluded in the National Plan for the Adoptionof the Acquis (NP AA):

.Veterinary sector (ref. A)

.Phytosanitary sector (ref. B)

.Common Market Organisations (ref. D)

.environmental Programmes in Agriculture (ref. E, E2)

.Food-processing Industry Support (ref. E4)

.Databases for CAP hannonisation (ref. F)

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2. Description

Based on the screening and the adoption of the Slo\i'enian Agricultural Policy Reformthe MAFF will be responsible for establishment and implementation of all CAP instruments, inparticular regarding the Agency for Agricultural Markets and Rural Development (AAMRD).

The 1999 programme will be consisted of 2 main C()mponents:

1.

Establishment of the AAMRD and Farm Registry

Slovenia will set up a new institution, the Agency for Agriculturar Markets and RuralDevelopment (AAMRD) which will be composed of two Departments: Department for AgriculturalMarkets and Department for Rural Development. The new institution will also playa role of a singlepaying agency in a sense of EU term. The AAMRD will function under the umbrella of the Ministry ofAgriculture, Forestry and Food (MAFF).

The Progranune will cover the establishment of the Department for Agricultural Markets and itsactivity according to the following CAP tasks:

-1. Import-expqrt regimes (licences, export subsidies, custom quotas)2. Public storage and private storage aids3. Direct payments from the Guarantee Fund4. Other tasks related to CAP measures.

A part of the AAMRD will be established under the twinning 1998 PHARE programme(SL98/IB/AG/O2- rural/structural development) and will cover the rural department responsibilities andtasks:

1. Programme for less favoured areas2. Agricultural environmental programmes3. Programmes for improving the efficiency of the agricultural holdings4. Programme of support to marketing and processing5. Programme for integrated rural development.

AAMRD component of the 1999 programme will be composed by 2 sub-components

1.1 Establishment of the AAMRD

4It is envisaged that Agency for Agricultural Markets and Rural Development covers -as its

name indicates -both, activities related to agricultural markets (guarantee type of payments) andrural/structural development measures (guidance type of payments). MAFF its~lf will function as'competent authority' accrediting AAMRD on basis of the criteria contained in annex of EU regulation1663/ and appointing a certifying body (not definitely selected yet) for external control. AAMRD,obtaining its mandate and budgetary resources through MAFF but operationally independent, will -corresponding to EU guidelines -work in four autonomous divisions: internal control, accounts andreports, payments and technical/substantive decision making. Service units such as legal, IT etc. willsupport these divisions.

To a certain extent some activities like SPP training and preparation for SAPARD, covered byspecial arrangements, will contribute to. an overall implementation of AAMRD.

.2 Farm Registry

The Fann Register is one of the essentials for payment control. Work on it has started a fewyears ago by the Agricultural Department of MAFF. The task is however complex due to absence of an

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up to date cadastre, the very high number of small and fragmented fanns and the absence of high-techsupport on national scale. The programme will have established the basic methodology and the routinein fann registry work and will deal also with some special substantive issues (such as grapes and

vineyards cadastre; less favoured-areas, etc.). Also, this twinning will have to be widened a) to cover thelinkages of the fann registry to RERM and lACS in the next phase, moreover b) to ensure that theSlovenian AIS, in development, becomes in time the tool of the AAMRD and its paying agency needsfor proper functiOning.

2. Preparation for the Internal Market

An important part of Slovenian aligmnent with the acquis in the field of Internal MarketMeasures is implementation and enforcement of veterinary and plant health requirements and upgradingof establishments to meet EC standard with regard to the inspection and control arrangements forprotecting the EU external border (Accession Partnership -Slovenia -Recommendation for Action) aswell as consolidation of food quality control.

This sub-programme has three components:

2 Strengthening of yeterinary control

The-Regular Report of the Commission on Slovenia's progress towards accession and AgriculturalPolicy and -Agricultural Situation and prospects in the Central and Eastern European Countries -Slovenia and the Accession Partnership as well as in National Program of the Adoption of the Acquis -Agriculture single out the following areas for improvements in the veterinary control field:

.inspection, physical examination, storage and lairage at the BIPs which will remain following EUacceSSIon

.preparation of the effective system of animal identification, registration and movement control

.establishing an integratedcomputerised communication network

.introducing of the HACCP concepts under veterinary control in the food industry's managementsystems

.adoption of the new law on animal welfare and implementation of the animal welfare legislation.

It was with this in mind that the Veterinary Services have requested institution building and are nowin fact planning twinning with an EU Member State in 1999 with the main objective of preparing theveterinary sector of Slovenia for the EU integration. The projectfor 1999 will concentrate on help withchanging and improving the system of official control and introduction of the HACCP concept and self-control policy into the plants for products of animal origin in Slovenia. The project would concentrateon animal identification and registration, co-operation and enforcement of the border inspection posts,review and training on the European information system" ANIMO", improvement of animal welfarelegislation (as a very important and vulnerable point) and co-operation with internationally recognisedveterinary laboratories. As for the improvement of border inspection system it has to be stressed out thatthrough the institutional building the control and inspection procedures will be discussed and put incompliance with the EU procedures. At this point it has to be mentioned that all the examination andinspection procedures, storage and lairage requirements will be completely in line with the EUrequirements only after building up new facilities for veterinary border inspection posts.

-

As regards investment activities their main target is the animal identification system as at presentfacilities in Slovenia do not allow EO-level performance. The veterinary systems for all animalidentification, registration and movement control have been elaborated as well as an integratedcommunication network, thanks to the PHARE 1996. NP AA envisaged that the Animal IdentificationSystem and Registry would be organised inside the MAFF as a special Service for Identification andRegistration (SIR) inside the Agricultural Information System. The SIR will need substantial support inhardware and telecommunication network. Further, the internationally used ANIMO system needs to be

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.2.2 Strenlrthenin(l of food Qualitv contrQ!

Following the Accession Partnership (Internal Market -Free movement of goods) independentstandardisation and conformity assessment infrastructures will have to be established in Slovenia; EUlegislation on foodstuffs fully aligned. According to the Regular Report from the Commission onSlovenia's Progress towards Accession also adaptation to EU standards in the agro-food sector isnecessary. The NP AA recommends further that certain activities aiming at improvement of the qualityof food products be included in the programme of the structural changes of agriculture as well.

Upon specific review of the sub-sector by PHARE 1995 programme's assessment missions onfood quality control that took place in November 1998, the emphasis of recommendations was put a) on

updatingihannonisation of legislation, b) on more effective and cost-efficient organisation ofenforcement- measures, and c) on upgrading and international accreditation of laboratories.Correspondingly the 1999 programme seeks institution building for:

~ elaboration of a basic law as a basis for technical regulations and its implementation as wellas preparation of by-laws;

.inter-ministerial harmonisation of enforcement measures;

.assessing testing laboratories: setting up of the system of quality management (qualityassurance) and internal audit before the accreditation procedure; implementation of one pilotaccreditation testing laboratory; (Under 1999 twinning MERD programme similar tasks areenvisaged for short term experts which are covered by the following EU legislation: Regulations2081/92 and 2082/92 which are not the subject of agricultural legislation and therefore not partof agricultural PHARE 1999 programme).

.training. (workshops and seminars) for MAFF employees, control institutions and producers toensure that EU principles and technical details of regulations are fully understood by middleand junior staff. Training should be extended to inspectors and staff in food companies.

The investment is foreseen is to upgrade the physical facilities of the selected laboratories that should -one, maximum two in a given field -reach international accreditation (see annex for technicalspecifications) .

2.3 Improvement ofohvtosanitarv control

According to the Commission's Regular report on Slovenia there are no inspection and storagefacilities for the veterinary and phytosanitary inspections to be carried out at the international bordercrossings with the Republic of Croatia. Systems that have been elaborated but need implementation are:an integrated computerised communication network, and inspection, physical examination at BIP'swhich will remain following accession.

In the short term Accession Partnership priorities it is stated that reinforcement of phytosanitaryadministration, and particularly as regards facilities at the external borders should be carried out. IIi linewith this statement the project of an institutional twinning programme 1998 for implementation of the

phytosanitary EU-acquis in Slovenia, in co-operation with the Netherlands Plant Protection Service hasbeen prepared. Its objectives are to get acquainted with control of harmful organism and preventivemeasures against introduction and dissemination used in EU Member States and the phytosanitary

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border inspection at the external. border of the EO through limited training of senior phytosanitaryinspectors and representatives of laboratory experts.

In order to reach the requirements stated in EO Directive 22/98 which determine minimumconditions for carrying out plant health checks of plants, plant products or other objects corning fromthird countries, it is of significant importance to improve current facilities for detection and diagnosis ofharmful organisms, which are carried out in officially approved laboratories in Slovenia..

In the medium term Accession Partnership priorities the main emphasis is on the adoption andimplementation of the phytosanitary requirements in alignment with the agricultural acquis (includingphytosanitary matters, in particular external border controls).

To meet the requirements of ,short and medium term Accession Partnership priorities it isnecessary to determine and set up phytosanitary procedures (including national inspection guidelines -

manual):.for control of plants and plant products coming from third countries at border inspection posts

with the Republic of Croatia, airport and harbour;.for plant passport system, control of plant health at the place of production and monitoring of

plant health condition in Slovenia.

At the same time it will be necessary to acquaint phytosanitary inspectors and laboratoryspecialists with the work (scope) of the EU system.

To fulfil the requirements of Directive 22/98 there is a need of:a) specialised training for phytosanitary inspectors and specialists from officially approved

laboratories to gain technical competence, especially as regards the detection of harmful organisms;b) establishing a rapid communication system with Central Single Authority, Phytosanitary Inspection

Service, specialised laboratories, customs authorities, the Commission, other Member States.

Improvement of the system of phytosanitary control at the border in accordance with acquis is thehighest priority of the sector (National Programme for Adoption of Acquis -NPPA).

Although the Phytosanitary Inspection Service has in the past made a good use of PHAREassistance a great deal of additional efforts will be needed to bring phytosanitary control fully in linewith EO requirements. The PHARE 1999 programme will be based on the recommendations andconclusions of the previous PHARE nationa~ programme expertise and NPPA activities.

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3. Institutional framework:

The implementing authority will be the Ministry of Agriculture, Forestry and Food (MAFF). Specificproject beneficiaries will be the Agency for Agricultural Markets and Rural Development (AAMRD),the Veterinary Administration, Phytosanitary Inspectorate and the various MAFF divisions foragriculture and rural development, food as well as selected national reference laboratories for foodproducts. According to the Governmental decree MAFF has been allowed to employ additional 80persons primarily for activities fort the accession and adoption of the acquis. Half of these personnel arealready employed but they need in the beginning concentrated general training on EU and EUinstitutions, before entering in full activities within the twinning arrangements.

4. Budget (in EUR)

IDIS I illS

-,EUR

1.1. Establishment of AAMRD-Agricultural Marktts partof Agency

400,000~

400,000 200,000 600,000

1.2.

Fann Registry 400,000 j 400.000-( 120:0001

-',. 1. Veterinary r 500,000 20,000,000I

_300,000 400,QQO 2.200,000

:.

2. ~ity control600,000 ( 400,00Or 1,05)0,000 I 2,500.0QQ I

-

3.500,0002. 3. ~hytosanit~

---

*Based on approximation in NP AA.

5. Implementation arrangements:

The Ministry of Agriculture shall be responsible for project identification, specification,contract implementation and project monitoring. Tendering and contracting shall be carried outby the CFCU. The Programme Implementation Unit of the Ministry of Agriculture shall closelyco-ordinate with all the departments and bodies involved in implementation:

...

For AAMRD and Fann Registry, the Ministry of Agriculture, Forestry and FooditselfFor Veterinary Control: Veterinary Administration ofRSFor Quality Control: Ministry of Agriculture, Forestry and Food, Institute for Oliveoil and Mediterranean cultures, Milk Institute and Institute for Hops Research and

Brewing;For Phytosanitary Control: Inspectorate for Agriculture, Forestry, Hunting andFisheries and 1 nominated laboratory.

.

Twinning activities shall follow the standard procedures applicable. The possible procurementof services and supplies would follow Phare DIS rules.

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6. Implementation schedule:

After signing the financial memorandum and other documents needed for 1999 twinningarrangements the implementation of the project will start. Expected start is January 2000 andcompletion in 3 rd quarter of the 2001.

.7. Equal Opportunity:

Existing personnel by sexes:-In MAFF: 83 women (50 men) ,-In Veterinary Administration: 69 women (59 men)-In Inspectorate for Agriculture, Forestry, Hunting and Fisheries: 62 women (59 men)

Both sexes will have the same opportunity to work on PHARE related projects. However theexisting employment policy show that more then 50% of present personnel are women anddoes not cover only administrative technical work but also the professional one.

The implementation of the PHARE 1999 Programme in the agricultural sector is open forexperts of-both sexes.

8. Environment:

An

environmental impact assessment is not applicable.

9. Rates of return:

Not applicable

10. Investment criteria:

Not applicable

11. Conditionality and sequencing:

EU sectoral policies regarding environment, public procurement, competition, veterinary andphytosanitary regulations will be fully respected. Regarding establishment of AAMRD certainamendments to the law on public Administration have to be adopted by the Parliament.

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15/06/99Annex 5 to Project Fiche SL 9905.01

Relation of project with previous PHARE activities and with ongoing projectsfinanced from other sources

1. AAMRD & Farm ReQjstrv

1.1. Imolementation of AAMRDThe Study tour for Slovenian Extension Service representatives to Denmark (financed by PHARE1995) has shown the advantages of the Danish approach to a single Paying Agency perfonned by theAgency of the Republic of Siovenian for Agricultural Markets and Rural Development. The RuralDevelopment part of the AAMRD \viIl resulted in PHARE twinning 1998 programme and thefeasibility study on establishment of IACS will be financed on PHARE 1997 as well as equipmentforeseen to be purchase under 1997 program for individual data bases and their linkages.

1.2.Fann~Some activities will be planned and executed according to the development ofRERM and FAD LandValuation Programme as well.

.

2. INTERNAL MARKET

2.1. Streru11h~ of vete~ control1998 and 1999 the results and recommendations of the comprehensive veterinary controlprogrammes under PHARE 1996 and 1997 will precroe PHARE twinning programmes. Anengineering on upgrading of border post is scheduled under the 1998 programm~.

2.2. Strengtheniruz offood Qualitv control:An assessment of the existing situation in food quality control in Slovenia has been carried out by theexpert mission financed by PHARE 1995. The recommendations of this mission will be the base forfurther implementation of the acquis in this field. The subject was partly covered also by veterinarycontrol projects (1996 and 1997 -Fries and Perre reports).

2.3. Strengthening ofQhvtosanitarv controlThe PHARE 1996 and 1997 programmes have gone a long way in identifying lacunae and inbringing the Slovenian phytosanitary system close to EU; it was planned to established definiteborder control posts and start the EU-<:onform inspection in early 2000 but construction of the borderposts is now delayed. Scheduled is still the engineering study in the 1998 PHARE programme.

8

15

15/06/99

Annex 6 to Project Fiche SL 9905.01

Reference to feasibility/pre-feasibility studies

Feasibility study on lACS an,d AIS will be undertaken and financed through PHARE1997 programme and will be completed in the 4th quarter 1999. Establishment oflACS will depend on the results of the study.

??? but we do not finance lACS under FM99. What is the point of this reference?

.16