2045-EU-Financed-Projects-Overview.pdf

7/27/2019 2045-EU-Financed-Projects-Overview.pdf

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EU Financed ProjectsOverview

Hseyin Cahit EkizMay 26, 2010


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BACKGROUND - EU

STRUCTURAL AND COHESION

FUNDS (1)

Various funding regulations and mechanismsover the past 30 years

Two main aims, to promote economic and social cohesion among

the Member States to support the economic and social development

of non-EU Member States

Priorities for economic and socialdevelopment were defined inline with therequirements of beneficiary countries and

Member StatesHseyin Cahit Ekiz May 26, 2010


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BACKGROUND - EU


FUNDS (2) Structural Funds are generally committed

to regions under each Objective by meansof;

Community Support Framework and

Operational Programmes

Single Programming Documents developed in

partnership with Member States

Hseyin Cahit Ekiz May 26, 2010


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BACKGROUND - EU


FUNDS (3) The Cohesion Fund was established in

1993 through a provision of the MaastrichtTreaty on European Union, and was

designed to assist the least prosperous

Member States in their preparation for

Economic and Monetary Union


BACKGROUND EU


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BACKGROUND - EU


FUNDS (4) In order to improve the efficiency of the

Community's External Aid, a new framework forprogramming and delivery of assistance, TheInstrument for Pre-Accession [IPA], has beenenvisaged (1085/2006 of 17 July 2006

establishing an Instrument for Pre-AccessionAssistance (IPA) )

The IPA Regulation was released as the set of

new regulations for Structural / Cohesion Fundswhich profoundly modifies the rules of the EC indirect relation with systems of control of the

related funds.Hseyin Cahit Ekiz May 26, 2010

BACKGROUND EU


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BACKGROUND - EU


FUNDS (5) In comparison with the former pre-

accession instruments, a major changeintroduced in the institutional backdrop by

the IPA regulation is the need for setting

up an institutional framework similar to

the one required for Structural / Cohesion

Funds


BACKGROUND Hi t f


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BACKGROUND History of

TURKEY related with EU FUNDS

(1) Application for membership to the

European Union was accepted by theEuropean Council in Helsinki in 1999.

Pre-accession assistance has been madeavailable since 2002

The candidate countries received EU

assistance through various instruments,

PHARE, ISPA, SAPARD and CARDS and

MEDA.Hseyin Cahit Ekiz May 26, 2010

BACKGROUND Hi t f


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BACKGROUND - History of

TURKEY related with EU FUNDS

(2) Turkey was allocated specific funds under

the heading Turkey Pre-Accessioninstrument in addition to MEDA funds.

EU financial assistance to Turkey isplanned, and implemented as year based

Financial Agreements (FA).

2002 2006 FAs were financed under

Turkey Pre-Accession instrument



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IPA (1)

IPA constitutes one of the general

instruments directly supporting EuropeanExternal Aid policies

The main objective of pre-accessionfinancial assistance to be provided to

Turkey under the IPA Regulation is to

prepare and facilitate its integration intothe EU



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IPA (2)

Assistance under IPA programmed and

implemented according to fivecomponents to ensure coherence,coordination and efficiency

In the context of the action plan of the EUtowards an Integrated Internal ControlFramework, common rules for theimplementation of assistance under theIPA Regulation are required for all five

components of IPA.Hseyin Cahit Ekiz May 26, 2010


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IPA components

I. Transition Assistance and Institution

Building (TAIB) II. Cross-Border Cooperation (CBC)

III. Regional Development (RD) IV. Human Resources Development

(HRD) V. Rural Development (IPARD)



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Component-I : TAIB (1)

The Transition Assistance and Institution Building[TAIB] component is designed to support the

administrative and judicial capacity building of thepublic institutions in order to: Address the Copenhagen Political Criteria [Accession

Criteria: political, economic and Acquis-related criteria for

membership]; Transpose and implement the Acquis Communautaire

[including participation in Community Programmes andCommunity Agencies]

Promote the dialogue with the civil society tostrengthen relations, contacts and mutual exchange ofexperience between civil society in the EU and Turkeyand ensure a better knowledge and understanding ofTurkey within the European Union and conversely a betterknowledge and understanding of the European Unionwithin Turkey



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Component-I : TAIB (2)

In this component, the CFCU is the

Contracting Authority and Head of theCFCU is the Program Authorising Officer

(PAO)



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Component-II : CBC (1)

Designed to promote good neighborly

relations and strengthen cooperation inborder areas between countries through

joint local and regional initiatives

combining both external aid and economic

and social cohesion objectives



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Component-II : CBC (2)

Actions funded under this component are

generally implemented through grantschemes

For Turkey this component isimplementable with two Member States,

i.e. Greece and Bulgaria, since has no

border with any other candidate orpotential candidate country



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Component-III: Regional

Development (1) Based on 3 sub-components:

Environment Transport

Regional Competitiveness

All aim at developing the internaleconomic and social cohesion and

convergence with the EU and shall serveto prepare candidate countries to themanagement of EU funds post-accession



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Component-III: Reg. Dev. (2)

Sub-component Environment Serves to support the transposition,

implementation and enforcement of theEU environmental legislation

Projects and measures funded under thissub-component relate to:

water supply and urban waste water

treatment;

waste management, including the

rehabilitation of contaminated sites and land



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Sub-component Transport Serves to support;

provision of efficient, flexible and safetransport infrastructure vital for economic

development as good transport networks

boost opportunities for trade, while increasingefficiency

interconnection and interoperability betweennational networks, and between national and

trans-European networks


Component-III: Reg Dev (4)


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Sub-component Regional

Competitiveness Serves to support the internal development

which provides for a higher level of social andeconomic cohesion between regions, throughhigh employment and productivity growth

Measures funded under this sub-componentinclude operations which enhance regional

competitiveness and a productiveenvironment, and encourage creation andsafeguarding of sustainable employment



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Component-III: Regional

Development (5) For a transition period (2007-2010) CFCU

is identified as the Contracting Authority inall sub-components of the Regional

Development through the Cooperation

Agreements between the CFCU and the

Operating Structures (OSs) under the line

ministries



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Component IV: Human Resources

Development (1) The Human Resources Development

[HRD] component is designed tocontribute to strengthening economic and

social cohesion as well as to the priorities

of the European Employment Strategy in

the field of employment, education and

training, and social inclusion



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Component IV: Human Resources

Development (2) For a transition period (2007-2010) CFCU

is identified as the Contracting Authority inthis component through the Cooperation

Agreement between the CFCU and the

OS under the Ministry of Labour and

Social Security


C t V R l D l t


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Component- V: Rural Development

[IPARD] (1) It is controlled by DG AGRI completely

independent from DG Enlargement IPARD Measures include;

Investments in farms to restructure andupgrade to the EU standards

Investments in processing and marketing of

agriculture and fishery products to restructureand upgrade to the EU standards


C t V R l D l t


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[IPARD] (2) IPARD Measures include;

Improving and developing rural infrastructure;

Development and diversification of ruraleconomic activities; Producer groups;

Agri-environment and animal welfare schemes (at

pilot level); Preparation of rural communities to conceive and

implement local rural development strategies andintegrated rural development strategies throughlocal partnerships (at pilot level);

Training;

Technical assistance


C t V R l D l t


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[IPARD] (3) In order to make use of the IPA funds to be

provided in the field of rural development, Turkey

presents a Rural Development Plan (IPARD Plan)for the years from 2007 to 2013 to form the basisfor financing the rural development measuresunder the IPA and establishes animplementing/paying agency which is the OSunder EDIS, namely IPARD Agency under theMinistry of Agriculture and Rural Affairs

IPARD is a step in preparing the country to theEuropean Agricultural Fund for Rural Development(EAFRD) and the European Agricultural Fund forGuarantee (EAFG)


INSTITUTIONAL FRAMEWORK


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(1) In order to manage IPA Components I to

IV, Turkey has established the followinginstitutions and key positions in such a

way to comply with the IPA Regulations;

Competent Accrediting Officer [CAO] -

State Minister with oversight of the

Treasury National Authorising Officer [NAO] &

National Fund [NF] - Undersecretary of theTreasury Hseyin Cahit Ekiz May 26, 2010



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(2) National IPA Coordinator [NIPAC] -

Secretariat General for EU Affairs [EUSG]

Strategic Coordinator for the RegionalDevelopment component and the Human

Resources Development Component - StatePlanning Organisation [DPT]

Audit Authority - Board of Treasury

Controllers Operating Structure - A body or a collection

of bodies within the administration of thebeneficiary country




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(3) Contracting Authority - Central Finance and

Contracts Unit (CFCU) (relevant only forComponent I of IPA and applicable toComponents III & IV for transitional period

[2007 2010]) Program Autorising Officer (PAO) - Head ofthe CFCU [being PAO is relevant only for

Component I of IPA] Senior Programme Officers (relevant only for

Component I of IPA) Responsible officers

of the Line Ministries for projects underComponent I Hseyin Cahit Ekiz May 26, 2010

Competent Accrediting Officer


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p g(CAO)

Issuing, monitoring and suspending or

withdrawing the accreditation of theNational Authorising Officer and the

National Fund


National Authorising Officer


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National Authorising Officer

(NAO) Is the head of the National Fund and bear

overall responsibility for the financialmanagement of EU funds in the

beneficiary country

Responsible for

the legality and regularity of the underlying

transactions the effective functioning of management and

control systems under the IPA Regulation



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National Fund (NF)

The national fund act as a central treasuryand be in charge of tasks of financial

management of assistance under the IPARegulation, under the responsibility of theNational Authorising Officer

Responsible for organising the bank accounts, requesting funds

from the Commission

authorising the transfer of funds received from theCommission to the Operating Structures or to thefinal beneficiaries

the financial reporting to the Commission


National IPA Coordinator (NIPAC)


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(1) Ensure partnership between EU and the

beneficiary country, and a close link betweenthe general accession process and the use of

assistance under the IPA Regulation

Responsible for

the coherence and co-ordination of the

programmes provided under the IPARegulation

the annual programming for Component-I at

national levelHseyin Cahit Ekiz May 26, 2010



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(2) the co-ordination of the participation of the

beneficiary country in the relevantComponent-II programmes. The National IPA

Coordinator may delegate the tasks relating

to this coordination to a cross-border co-operation co-ordinator;

drawing up and submission of the IPA annualand final reports on implementation to the

Commission with a copy to the national

authorising officerHseyin Cahit Ekiz May 26, 2010


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Strategic Coordinator (SC)

Ensure the coordination of the RegionalDevelopment component and Human

Resources Development component Responsibilities

co-ordinate assistance granted under theregional development component and thehuman resources development component

draft the Strategic Coherence Framework

ensure co-ordination between sectoralstrategies and programmes



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Audit Authority (1)

Verify the effective and sound functioning of themanagement and controls system.

Responsible for

establish and fulfil an annual audit work plan,during the course of each year and submit it to theNAO and the Commission before the start of theyear

submit to the Commission, to the NAO and theCAO by 31 December of each year the annualaudit activity report, as per the model of theFramework Agreement, setting out the resources

used, summary of weaknesses foundHseyin Cahit Ekiz May 26, 2010


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Audit Authority (2)

submit to the Commission, NAO and the

competent accrediting officer an annualopinion

submit an opinion on any final statement of

expenditure submitted to the Commission bythe NAO, for the closure of any programme

or any part of thereof, as per the model of theFramework Agreement; the opinion shall be

sent to the Commission and the competent

accrediting officerHseyin Cahit Ekiz May 26, 2010


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CFCU (PAO)

Multisectoral implementing body

In charge of tendering, contracting,payments, accounting, financial reporting,

contract administration

Responsible for the sound financial and

administrative management of projects to

be implemented



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Line Ministeries (SPOs)

Technical preparation & implementation of

projects Assist the PAO in the good and timely

preparation and implementation of

operations at technical level


O S (1)


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Operating Structures (1)

Entities, dealing with the management and

implementation of assistance, to theexclusion of the tasks undertaken by the

NIPAC, SC, NAO and the NF

The wording Operating Structures

basically refers to management

authorities, implementing agencies, lineministries, etc. managing and

implementing projects


Operating Structures -


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Operating Structures

responsibilities (2) Drafting the annual or multi-annual

programmes programme monitoring and guiding the work

of the sectoral monitoring committee, notably

by providing the documents

drawing up the sectoral annual and final

implementation reports, submitting them tothe Commission, to the National IPA

Coordinator and to the National Authorising

OfficerHseyin Cahit Ekiz May 26, 2010



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responsibilities (3) ensuring that operations are selected for funding and

approved in accordance with the criteria and

mechanisms applicable to the programmes, and thatthey comply with the relevant Community and nationalrules

setting up procedures to ensure the retention of all

documents required to ensure an adequate audit trail arranging for tendering procedures, grant award

procedures, the ensuing contracting, and makingpayments to, and recovery from, the final beneficiary;

ensuring that all bodies involved in the implementationof operations maintain a separate accounting systemor a separate accounting codification




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responsibilities (4) ensuring that the national fund and the national

authorising officer receive all necessary information on

the procedures and verifications carried out in relationto expenditure

setting up, maintaining and updating the reporting andinformation system

carrying out verifications to ensure that theexpenditure declared has actually been incurred inaccordance with applicable rules, the products orservices have been delivered in accordance with the

approval decision, and the payment requests by thefinal beneficiary are correct. These verifications shallcover administrative, financial, technical and physicalaspects of operations, as appropriate




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responsibilities (5) ensuring internal audit of its different

constituting bodies ensuring irregularity reporting

ensuring compliance with the informationand publicity requirements


O ti St t (6)


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In Components III and IV, the TurkishGovernment has decided to develop thefollowing Operating Structures

Component III - IPA Regional Development

Component : Ministry of Trade and Industry Ministry of Environment and Forestry

Ministry of Transport Component IV - IPAHRD component:

Ministry of Labour and Social Security


O ti St t (7)


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Two phases for development of OperatingStructures

A transitional period [2007 2010] during which: the CFCU is the Contracting Authority for

Components III & IV and shares a certain number of

responsibilities and tasks which are defined in theagreements with the Oss

the Operating Structures and the CFCU will reinforce

each other through the practice of exchangingexperience where there is a lack of appropriatelyskilled and/or experienced people in a particular body.

ultimate responsibility remains at the side of the OSs

with regard to implementation of the programmesHseyin Cahit Ekiz May 26, 2010



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A second period [2010 2013] during

which the various bodies involved in theOperating Structures are expected to be

able to take on board additional

responsibilities in relation to procurementand financial management


MONITORING COMMITTEES


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MONITORING COMMITTEES

The overall implementation of IPA assistance inTurkey must be subject to monitoring in

accordance with the IPA IR. This implies settingspecific monitoring committees which mandatesmust be formally defined and agreed upon with the

EC; IPA Monitoring Committee

Sectoral Monitoring Committees [SMC]

TAIB Committee CBC Joint Monitoring Committee

Sectoral Monitoring Committees - Environment,

Transport, Competitiveness and Human ResourcesHseyin Cahit Ekiz May 26, 2010

IPA Monitoring Committee (1)


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Participation of EC + NIPAC + NAO + SCO +

Oss Co-chaired by EC + NIPAC

Adopts its internal rules of procedure in

compliance with a monitoring committee

mandate established by the EC

Meetings: minimum once a year +intermediate meetings on a thematic basis

and/or as established in the monitoring

committee mandate / internal rules ofHseyin Cahit Ekiz May 26, 2010



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Make proposals to the Commission, the NIPACand the NAO for any actions to ensure the

coherence and co-ordination between theprogrammes and operations implemented underthe different components, as well as for any cross-component corrective measures needed to ensure

the achievement of the global objectives of theassistance provided, and to enhance its overallefficiency

May make proposals to relevant sectoralmonitoring committee(s) for decisions on anycorrective measures to ensure the achievementsof programme objectives and enhance the

efficiency of assistance provided under theprogrammes or IPA component(s) concernedHseyin Cahit Ekiz May 26, 2010

Sectoral Monitoring Committees


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[SMC] Participation of EC + NIPAC + NAO + SCO + Oss

Shall report to the IPA Monitoring Committee

Shall satisfy itself as to the effectiveness and quality ofthe implementation of the programmes and operationsconcerned, in accordance with the specific provisionslaid down for each component;

May make proposals to the EC and the NIPAC, with acopy to the NAO, for decisions on any correctivemeasures to ensure the achievements of programmeobjectives and enhance the efficiency of theassistance provided

Shall provide the IPA monitoring committee withinformation in accordance with the IPA IR


TAIB Committee


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TAIB Committee

Participation of NIPAC + NAO + PAO +

OSs + EC chaired by the NIPAC

meet at least twice a year rules of procedure, in compliance with a

sectoral monitoring committee mandate

set out by the Commission adopted in

agreement with the NIPAC, NAO and the

IPA monitoring committeeHseyin Cahit Ekiz May 26, 2010

CBC Joint Monitoring


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Committee Participation of Managing authority +Participating countries + EC [advisory role]

One joint monitoring committee for each CBCprogramme

Chaired by a representative of one of the

participating countries or the managingauthority

Meets at least twice a year

Draws up its rules of procedure in compliancewith a joint monitoring committee mandateset out by EC


Sectoral Monitoring Committees -Environment Transport


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Environment, Transport,

Competitiveness and HRD (1) The composition of the Sectoral Committees

is decided by the Operating Structure, in

agreement with the Commission Co-chaired by Head of OS + representative

of EC

Secretariat provided by IPA Unit of relevantMinistry

Meet at least twice a year

Each sectoral monitoring committee has itsrules of procedure in compliance with aSectoral Monitoring Committee mandate set

out by the ECHseyin Cahit Ekiz May 26, 2010

Sectoral Monitoring Committees -Environment Transport


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Environment, Transport,

Competitiveness and HR (2) Consider and approve the general criteria for

selecting the operations, and approve any

revision of those criteria in accordance withprogramming needs

Review at each meeting progress made

towards achieving the specific targets of theOP on the basis of documents submitted bythe OS;

Examine at each meeting the results ofimplementation, particularly the achievementof the targets set for each priority axis and

measures and interim evaluationsHseyin Cahit Ekiz May 26, 2010

INTER INSTITUTIONAL


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RELATIONS It is important for the staff involved in a

way or another in the management of IPAto understand:

At which level of the project management

cycle they intervene

How their respective activities impact on the

whole system How their respective functions are subject to

internal controls and audits


FLOW OF INFORMATION (1)


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EU Headquarters Brussels + EU

DELEGATION ANKARA to/from CAO CAO to/from NAO + NF

NAO + NF to/from NIPAC + EUSC, PAO+CFCU, OSs

NIPAC + EUSG to/from Strategic

Coordinator for Reg. Dev. & HrD (StatePlanning Organisation)




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PAO+ CFCU to/from OSs, Delegated

bodies at local / regional level,Contractors, Beneficiaries

All of the actors to/from Monitoring

Committees


FLOW OF FUNDS


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FLOW OF FUNDS

EU to/from NF

NF to/from Contracting Authority Contracting Authority to/from Contractors,

Grant Beneficiaries


AUDIT (1)


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AUDIT (1)

SAYITAY - Turkish Court of Accounts

[TCA] Supreme audit institution of Turkey EU Court of Accounts - Supreme audit

institution of EU

AUDIT AUTHORITY - Board of Treasury

Controllers


AUDIT (2)


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AUDIT (2)

Internal Auditors

Audit counsil of Turkish Prime Ministry Audit counsil of relevant Ministery

EC Auditors Third party organisations assigned by EC

OLAF


AUDIT (3)


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AUDIT (3)

Internal Audits

Audit of the systems Compliance audits

Periodical audits Project/event based case audits


Segregation of duties among the


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key players A clear division of tasks has been established amongthe IPA key players in order to comply with Article 21.2of the IPA Implementing Regulation

NAO and NIPAC the two positions, although separate,hold equal authority in their respective scope

The National Fund is established under the authority

of the Undersecretary of Treasury and reports to theNAO. It is fully independent from any of the OperatingStructure

The CAO is independent from the NAO

The Operating Structures and the ContractingAuthority do not report to the NIPAC nor to the CAO orthe SCO


Segregation of duties within the


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Operating Structure (1) Adequate separation of functions has

been ensured within the designatedOperating Structure

Sufficient segregation of duties is

guaranteed among Tendering, Contract

implementation / monitoring and financial

/ payment responsibilities




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Operating Structure (2) During the implementation of the projects

through the tendering, contracting and

implementation of each contract: the staff assigned to manage and / or control

tendering process

shall be different from the staff which will beassigned after signature to:

implement / monitor the contract, execute financial aspects of the contractsincluding payments




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Operating Structure (3) The staff providing approval for payment of

invoices / requests for payment during the

operational monitoring should not have

access to the funds in a way or another [e.g.

signature on bank accounts, accounting, andreconciliation]

As a rule, the initiation, the ex-ante and the

ex-post controls are separate functions, to be

carried out by different persons, functionally

independent form each otherHseyin Cahit Ekiz May 26, 2010