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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:


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


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


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


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

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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



Burgas



Malko Tarnovo



Dobrich



Provadia



Gabrovo



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

8

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)



Kocherinovo



Pleven



Botevgrad



Yambol



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

9

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

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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;

18

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


� 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


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


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)

24

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


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.

25

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


17. Municipality Kardzhali 58131-36-36 58-131-С036 73 700.00












29. Municipality Targovishte 58131-53-53 58-131-С053 309 597.00



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.


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


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


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.


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


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


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



102. Municipality Teteven 58131-99-99 58-131-С099 755 159.40

103. Municipality Borovo 58131-124-124 58-131С124 739 883.00



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


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




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




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.


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”



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



37


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.


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.


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.


Refer to item 2.3 “Significant problems encountered and measures taken to overcome them”.

3.4. PRIORITY AXIS 4: TECHNICAL ASSISTANCE



There is no relevant information to be supplied, because there are no defined indicators

under priority axis 4 in the OPE.


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


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.

47

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.

48

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.

49

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.

50

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


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


54

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


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

56

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

Documents

ANNUAL REPORT 2009 - government.bgope.moew.government.bg/files/useruploads/files/KNOP... · 2012. 7. 12. · Vidin Specific beneficiaries: regional associations or municipalities