Draft Annual Report 2011 ENG - government.bg · Interim payments from EC: - Priority axis 1: ... fund for non-compliance with the rules on public procurement, ... for non-compliance

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ANNUAL REPORT 2011

OPERATIONAL PROGRAMME

ENVIRONMENT, 2007 – 2013

EUROPEAN UNION EUROPEAN REGIONAL DEVELOPMENT FUND COHESION FUND

OPportunities for better life

2

OPERATIONAL RPOGRAMME ENVIRONMENT 2007-2013

ANNUAL REPORT 2011

1. IDENTIFICATION

Objective concerned: Convergence

Eligible area concerned: Bulgaria

Programming period: 2007 – 2013

Programme reference number (ССІ Code:

2007BG161PO005

OPERATIONAL PROGRAMME

Programme title:

Operational Programme Environment, 2007 – 2013

Reporting year: 2011 ANNUAL IMPLEMENTATION REPORT Date of approval of the annual report by the monitoring

committee: June 01 2012

2. OVERVIEW OF THE IMPLEMENTATION OF THE OPERATIONA L PROGRAMME

2.1. ACHIEVEMENT OF TARGETS AND ANALYSIS OF THE PRO GRESS

Information on the physical progress of the operational programme:

Core indicators

Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

Indicator 2:

Additional population served by waste water projects

Achievement

0 0 0 65 893

116 557

182 450

Target (1) 0 0 0

1 295 000

1

845 000

Baseline стойност

45 000

45 000

45 000

45 000

Indicator 5:

Constructed and completed integrated waste management systems

Achievement

0 0 0 0 0 0

Target (1) 0 0 0 12 27

Baseline 5 (5) 5 (5) 5 (5) 5 (5)

Additional indicators

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Indicator 1:

Population connected to urban WWTP

Achievement

0 0 0 0.10%(6)

2.40%

1.58%(6)

49.18%

Target (1) 0 0 0 58.04%

66.46 % (2)

Baseline 40.5 % (3)

40.5 % (3)

40.5 % (3)

40.5 % (3)

Indicator 2:

New and rehabilitated WWTP

Achievement

0 0 0 2 1 3

Target (1) 0 0 0 22 65

Baseline 1(4) 1(4) 6(4) 11(4)

Indicator 3:

Population served by integrated waste management systems

Achievement

0 0 0 0 0 0

Target (1) 0 0 0

1 983 264

3 967 000

Baseline 467 000

467 000

467 000

467 000 467 000

Indicator 4:

Percentage of total NATURA 2000 (protected zones and protected areas) to be mapped/managed

Achievement

0 0 0 0 0

Target (1) 0 0 0 2.6 8

Baseline 0 0 0 0

Indicator 5:

Number of mapped protected areas and zones of NATURA 2000

Achievement

0 0 0 0 0 0

Target (1) 0 0 0 14 44

Baseline 0 0 0 0 0

Indicator 6:

Number of elaborated management plans for protected areas and zones of NATURA 2000

Achievement

0 0 0 0 0 0

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Target (1) 0 0 0 14 44

Baseline 0 0 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 Environment OP 2007-2013 (3) NSI Statistical Reference Book “Environment” – the data are for 2004. Afterwards the NSI published data for 2007 (42.2 %), 2008 (43.8%) and for 2009 (45.2%). (4) The baseline value refers to WWTPs completed with financial assistance from ISPA. 5 new WWTPs were constructed in 2009 and five more in 2010 and 2011. (5) The baseline value refers to integrated waste management systems completed with financial assistance from ISPA. (6) Data refers only to OPE contribution to the overall value of the indicator. The value of 2,40% is the achievement on the indicator at national level.

FINANCIAL INFORMATION (ALL FINANCIAL DATA ARE EXPRE SSED IN EUR)

Priority axes by source of funding (EUR)

Total funding under the OP (Union and

national counterpart)

Basis for calculating the

Union contribution

(public or total)

Total certified eligible

expenditure paid by the

beneficiaries (1)

Corresponding public contribution

(1)

Performance rate

(%)

a b c d е= d/a for public

contribution

Priority axis 1 (CF+NB) 1 284 207 841

public contribution

67 735 591 67 735 591 5,27

Priority axis 2

(ERDF+NB) 366 743 574

public contribution

12 664 023 12 664 023 3,45

Priority axis 3

(ERDF+NB) 103 308 048

public contribution

1 832 333 1 832 333 1,77

Priority axis 4

(ERDF+NB) 46 488 622

public contribution

3 084 057 3 084 057 6,63

Total

1 800 748 085

85 316 004 85 316 004 4,74

(1) Information is presented cumulatively and refers to the period 01.01.2007 – 31.12.2011.

Total tranches received from EC under OPE at 31.12.2010 amount to EUR 148 451 537.90, allocated as follows:

Advance payments from EC:

Advance payments from EC:

- Priority axis 1: EUR 107 873 458.67 from CF

- Priority axis 2: EUR 28 055 883.42 from ERDF



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Advance payments from EC: EUR 147 388 787.39

Interim payments from EC:

- Priority axis 1: EUR 54 188 473,15 from CF

- Priority axis 2: EUR 10 764 419,44 from ERDF



Interim payments from EC: EUR 69 131 823,58

Total payments from EC: EUR 216 520 610,97

INFORMATION ABOUT THE BREAKDOWN OF USE OF THE FUNDS BY CATEGORY

Indicative breakdown of the Community contribution (EUR) by category in the operational programme:

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 Environment OP, by category, at 31.12.2011:

Priority theme

Form of finance Territory

Economic activity Location

Value of signed contracts by priority

theme (EUR) 44 01 01 12 BG 65 141 653,19

45

46 01

01

09

BG

533 841 243,39

50 01 01 12 BG 0,00 51 01 00 21 BG 24 421 498,50 81 01 00 22 BG 106 680 088,24 85 01 00 22 BG 0,00 86 01 00 22 BG 0,00

Total 730 084 483,31

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The sums include EU and national co-financing and refer to the data in LOTHAR system. Having in mind that in LOTHAR system the major projects are presented only with the amount of signed contracts with contractors, not with the full amount of the grant and there is a difference between UMIS and LOTHAR.

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 inspection

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 – Inapplicable

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

ASSISTANCE BY TARGET GROUPS

There is no relevant information to be supplied.

ASSISTANCE REPAID OR RE-USED

On the basis of the review of the water sector projects approved in 2008 and with a view to ensuring conformity of OPE-funded expenditure with the principles of sound financial management, economy and efficiency of the investment, the public contribution to 37 projects – 5 for construction of water supply and sewage facilities and 32 for technical assistance – was

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cancelled with Decision No. 72/26.02.2010 on the grounds of Article 98 (2) of Regulation (EC) 1083/2006. The resources that are released as a result of this decision and may be reused to finance other projects total BGN 105 105 971.87.

On the basis of the principle of sound financial management, in conformity with Commission’s Guidelines for determining financial corrections to be made to expenditure co-financed by the structural funds or the cohesion fund for non-compliance with the rules on public procurement, and in fulfilment of Decree of the Council of Ministers No. 134/5.07.2010 on approval of a Methodology for determining financial corrections to be made to expenditure related to the implementation of operational programmes co-financed by the EU structural instruments, the European Agricultural Fund for Rural Development and the European Fisheries Fund, the Managing Authority of OPE designed and began to apply a procedure for imposing financial corrections which require ex-post control for legality or ongoing project audit. Financial corrections are imposed at reimbursement of expenditure made by beneficiaries under contracts for which opinions for non-compliance or audit reports have been issued, on the basis of the texts of the grant contract1 or an additional agreement thereto. Financial corrections are imposed through recovery of funds under the respective contractor agreement, up to the amount of the financial correction. MA may impose financial corrections at a flat rate for established systemic irregularities.

In consequence of the procedure’s application, at 01 April 2012 financial corrections to the amount of BGN 12 228 169.13 are deducted from payments made to beneficiaries; BGN 13 284 704.87 are to be deducted from future payments.2

At 31 December 2011, the financial resource released as a result of savings, financial corrections and contracts not verified amounts to BGN 47 526 635.24.

QUALITATIVE ANALYSIS

2011 INDICATIVE ANNUAL WORK PROGRAMME

In view of the regulatory opportunity provided by Decree of the Council of Ministers 121/2007 which allows IAWP to be amended in case of objective circumstances connected with the management and implementation of OPE that prevent the fulfilment of IAWP, amendments to IAWP 2011 were drafted in late October 2011, approved by the Head of MA and brought to the attention of Monitoring Committee members at the autumn meeting in December 2011.

The grounds for amendments included:

Priority axis 1:

1. By 31 December 2014 Bulgaria must fulfil the requirements of Directive 91/271/EEC concerning urban waste water treatment in agglomerations of 2000 to 10 000 PE. In order to fulfil the commitments undertaken and considering the technological time required to design and approve projects, MA of OPE needs to announce a procedure for construction of new WWTP and enlargement, reconstruction and modernization of existing WWTP in agglomerations of 2000 to 10 000 PE in order to ensure sufficient treatment of waste water and implementation of measures for water supply and sewage (WSS) systems.

2. Water companies play a critical role in the design and implementation of OPE-funded projects. At the same time, they experience problems due to the ongoing water sector reform

1 “Grant contract” – contract between the MoEW and the Beneficiary 2 The amount of the financial correction are confirmed by the Managing authority and will be deducted as soon as the beneficiaries submit requests for payments, containing invoice (or relevant documents) on the contracts, subject of financial correction

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and the need to clarify the ownership of water sector assets. In order to enhance the capacity of the structures involved in the water sector reform process and to achieve sustainable management of the water sector, a funding opportunity was made available under OPE. The scope of activities eligible for funding under priority axis 1 of OPE was expanded to include a new activity, in particular “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector for sustainable development of the WSS infrastructure” with beneficiaries: structures of the Ministry of Regional Development and Public Works that take part in the coordination and control of the WSS sector.

To that end, announcement of procedure “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector, for sustainable development of the WSS infrastructure” with MRDPW as specific beneficiary was planned.

3. The preliminary discussions and meetings with the specific beneficiaries showed that there was no need to finance activities for updating of river basin management plans whose design was funded under project DIR-581-26-1-1. Thus the title of procedure “Updating of river basin management plans and designing of flood risk management plans” was amended to “Designing of flood risk management plans”, while keeping the level of total allocations to the procedure.

Priority axis 2:

Following a meeting at the Council of Ministers on the design challenges of the project for Kocherinovo region and a revamping of the waste management approach for the region, a call for proposals will be launched for the waste management systems of Blagoevgrad and Dupnitsa. Equally, the National Waste Management Programme 2009 – 2013 (NWMP) needs to be amended. The application documents for Pazardzhik region – Pre-Investment Study, Cost-Benefit Analysis and Application Form – were updated and the ownership of the terrains that will make part of the regional system was clarified.

In that light, a decision was taken to announce an aggregated procedure “Establishment of regional waste management systems of Pazardzhik, Provadia, Blagoevgrad and Dupnitsa regions and a reloading station in Svoge Municipality within the regional system of Kostinbrod”.

Priority axis 3:

1. In order to streamline the absorption of funds under priority axis 3 and towards effective implementation of activities for management of protected areas within the National Environmental Network, as well as in consequence of meetings with the National Nature Protection Service (NNPS) Directorate and Executive Forest Agency (EFA), a decision to announce a direct award procedure for “Implementation of activities for planning and management of parks and reserves” was taken. The beneficiaries of the procedure should include national and nature park directorates, as well as the regional inspectorates of environment and water as the bodies responsible for the management and implementation of activities within the respective protected territories in accordance with Articles 48, 50, 52 (2) of the Protected Territories Act and the Rules on the structure and activity of national and nature park directorates and regional inspectorates of environment and water. The new approach for direct grant award for activities in protected territories was approved by the members of the Monitoring committee within a written procedure.

2. Procedure “Development and update of managed reserves management plans” and procedure “Updating the Pirin National Park management plan” are omitted from IAWP 2011 because they are included in the procedures under the new approach.

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3. Announcement of procedures for “Preservation and restoration of the biodiversity” was planned for 2009 and 2010. An aggregated procedure uniting the two above mentioned, including their allocations, was announced in 2010. The deadline for submission of project proposals was set at 21 February 2011 and later extended to 21 March 2011 with Order No. RD-OP-8/31.01.2011 of the Minister of Environment and Water. Due to the time shift of the procedure and the extended application deadline, the allocations were expected to be contracted by the end of 2011. In that light, it was deemed inexpedient to announce the same procedure at the end of the year.

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2011 INDICATIVE ANNUAL WORK PROGRAM FOR AWARD OF GR ANTS UNDER OPE

Maximum amount of grant for

the procedure Is the scheme or part

thereof:

№

Sch

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/Pro

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Typ

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f g

ran

t aw

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pro

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1

BG

N

EU

R

Elig

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ben

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Ma

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um

% o

f co

-fin

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Ind

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de

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or

ann

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the

sch

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Ind

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bm

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osa

ls

Sta

te a

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ithin

the

mea

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f A

rtic

le

87

of t

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Tre

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esta

blis

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Eu

rop

ean

C

om

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D

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with

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No.

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Min

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Priority axis 1: Improvement and development of water and waste water infrastructure in settlements with over 2000 PE and settlements with less than 2000 PE within urban agglomeration areas.

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"Improvement and development of water

and waste water infrastructure in

agglomerations with 2000 to 10 000 PE"

Direct award procedure

300 000 000.00 153 387 564.36

Municipalities with

territories falling within agglomeration

of 2000 to 10 000 PE

80% 17.10.2011 TBD at

procedure announcement

Nil Nil

According to PIS and CBA of projects

2

"Strategic planning and strengthening of the

capacity of the structures involved in the reforming of the

WSS sector for sustainable development

of the WSS infrastructure "


12 000 000.00 6 135 502.57 MRDPW 80% 31.10.2011 TBD at


Nil Nil

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3 "Designing of flood risk

management plans " Direct award

procedure 20 500 000.00 10 481 483.56

Basin directorates

80% 10.11.2011 TBD at


не не 20 500 000

Priority axis 2: Improvement and development of waste treatment infrastructure.

4

“ Establishment of regional waste

management systems in Pazardzhik, Provadia,

Blagoevgrad and Dupnitsa regions and of

a reloading station in Svoge Municipality

within the Kostinbrod regional system "


87 527 188.77 44 751 941.00

Pazardzhik, Provadia,

Blagoevgrad, Dupnitsa

regions and Svoge

Municipality

85% 1.12.2011 TBD at


Nil Nil As per PIS and CBA of projects

Priority axis 3: Preservation and restoration of the biodiversity.

5

"Implementation of activities for planning and management of parks and reserves "


125 000 000.00 63 911 485.15

RIEW, Nature Park

Directorates, National Park Directorates

85% 31.10.2011 TBD at


Nil Nil Not

envisaged

Two procedures were announced under priority axis 1 in accordance with IAWP 2011:

• Procedure “Improvement and development of water and waste water infrastructure in agglomerations of 2000 to 10 000 PE” was announced on 9 November 2011. The deadline for application is 15 August 2012. Indicative allocations to the procedure amount to 300 MBGN.

• Procedure “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector for sustainable management of WSS structures” was announced on 18 January 2012. Indicative allocations to the procedure amount to 16.8 MBGN.

Procedure “Updating of river basin management plans and designing of flood risk management plans” with basin directorates as beneficiaries was announced on 17 April 2012.

Priority axis 2

The procedure for establishment of regional waste management systems in Blagoevgrad, Dupnitsa, Provadia, Pazardzhik and Svoge regions was not announced because the beneficiaries did not have projects in the pipeline. Procedure’s announcement is directly related to the establishment of project pipelines by municipalities. In support of beneficiaries’ efforts, MoEW organizes regular meetings, issues expert opinions, etc.

Priority axis 3

• Procedure BG161PO005/11/3.1/02/23 “Development of management plans for special protection areas for birds not overlapping with special protection areas for habitats”, which was scheduled for announcement in 2011, was announced on 1 February 2011.

• Procedure BG161PO005/11/3.0/03/24 “Terrain Studies of Species Distribution/Evaluation of Species and Habitat Status for the Territory of the Whole Country - Phase I”, was announced on 15 February 2011

Procedure “Implementation of activities for planning and management of parks and reserves” with national park directorates, nature park directorates and regional inspectorates of environment and water as specific beneficiaries and total allocations at BGN 125 000 000 was scheduled for announcement under IAWP. Considering the diversity of eligible activities for the above mentioned beneficiaries and the different application and project implementation requirements, the procedure had to be split and the following two procedures were announced on 2 December 2011:

• BG161PO005/11/3/3.2/05/26 “Implementation of activities for planning and management of national parks and reserves” with national park directorates as beneficiaries and total allocations at BGN 90 400 000.

• BG161PO005/11/3/3.2/06/27 “Implementation of activities for planning and management of nature parks” with nature park directorates as specific beneficiaries and total allocations at BGN 34 600 000.

2.2. INFORMATION ABOUT COMPLIANCE WITH COMMUNITY LA W

Towards successful implementation of OPE, the following measures have been identified, aiming to improve national environmental, spatial planning and public procurement legislation:

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Laws

The Water Act was amended four times in 2011, enacted with SG, No. 19/08.03.2011, No. 28/05.04.2011, No. 35/30.05.2011 and No. 80/14.10.2011. The basic amendment consists in introduction of a new objective of integrated water management aiming to reduce the threats and consequences of the harmful impact of water. Prioritization has been brought in the implementation of water policies, with special focus to be placed on measures included in river basin management plans and flood risk management plans. The amended act regulates that the operational protection of the population will be provided on the basis of emergency response plans whose content will be determined by the interior minister. The terms of reference of each authority in case of emergency or need of preventive actions are determined. Regional governors are delegated the responsibility to control the technical condition of the state-owned hydro-technical facilities within their territory.

The Spatial Planning Act saw three amendments in 2011, enacted with SG, No. 19/ 08.03.2011, No. 35/03.05.2011, No. 54/15.07.2011 and No. 80/14.10.2011. OPE-related changes concern the projects for spatial planning schemes; detailed and general structural plans are to be approved upon coordination with the director of Executive Forest Agency. Construction sites shall not be commissioned in the absence of a specified amount of appropriations per unit of disposed waste in accordance with Article 71a of the Waste Management Act.

The Public Procurement Act also witnessed a lot of amendments and supplements enacted with SG, No. 19/08.03.2011, No. 43/07.06.2011, No. 73/20.09.2011, No. 93/25.11.2011. Among the most notable is the one reducing the types of procedures and regimes for award of public procurement contracts in the country by repealing the Ordinance on the award of small public procurement contracts (OASPPC), the procedures provided therein, accordingly. Public procurement contracts at amounts pursuant to the repealed ordinance will be awarded through the procedures laid down in the Act; certain reliefs are also envisaged. An important new step towards facilitated award of public procurement contracts is the new standard form regulated in the Act – “corrigendum decision”. It is similar to the form used by the Publications Office of the European Union which publishes the Official Journal of the EU – Notice for Additional Information, Information on Incomplete Procedure or Corrigendum. The new form enables contracting authorities to make a one-off correction to decisions and notices for opening of procedures within 14 days from their publication in the Public Procurement Register (PPR). Only complete change of the object of procurement is prohibited. At the expiry of that time limit, contracting authorities may only publish decisions for extension of the deadlines of the procedure. This tool can be used to eliminate errors and omissions, including such established within the ex-ante control carried out by the Public Procurement Agency.

The amended act regulates that loans extended by the Bulgarian Development Bank to co-finance projects under Transport, Environment and Regional Development OPs, approved by the European Investment Bank in accordance with the procedure under 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, shall not be object of public procurement. Contracting Authorities shall approve internal rules for award of public procurement contracts specifying the procedure for planning and organization of the procedures for control on the implementation of concluded public procurement contracts.

The law does not apply to utility service contracts concluded by contracting authorities that are territorial bodies of the Executive or associations thereof with a company established in accordance with the Municipal Ownership Act which is a contracting authority and: a) its capital is 100% municipal-owned; b) it is subject to control similar to that exercised by contracting authorities on their own structural units; c) its scope of business in accordance

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with its constituent or structural documents is provision of utility services; d) provision of utility services to the respective contracting authority or association of contracting authorities makes up not less than 90 per cent of its turnover. The thresholds of contract values over which contracting authorities are to apply award procedures are increased. Where the object of public procurement is provision of services but construction works resulting from the main object are also involved, the public procurement contract is to be awarded as a service contract. Contracting authorities may appoint contractors in open procedure, restricted procedure or negotiated procedure with prior notification and e-tendering, as well as in cases where the technical specifications of the public procurement can be precisely determined.

The amended act regulates that the Executive Director of the Public Procurement Agency shall: issue methodological guidelines to standardize the implementation of the Act and of the relevant subordinate legislation; approach the competent bodies regarding the exercise of control for compliance with the Act; provide ex-ante control on procedures financed or co-financed with EU funds. The scope and mechanism of the ex-ante control exercised by the Public Procurement Agency is amended. Subject to such control shall be procedures financed or co-financed with EU funds and with contract value above the thresholds laid down in the Act. Control will only be provided by the Public Procurement Agency and will cover notices for opening of procedures, the proposal evaluation methodology, and, for certain types of procedures, also the decision to initiate a procedure. The amendments introduce also a feedback mechanism to follow up on Agency’s recommendations. The above measures are expected to improve the efficiency of the control for compliance of procedures.

The act clearly regulates the rights and obligations of the contracting authority and the participants in each public procurement phase and thus decreases possible cases of subjectivism and unregulated behavior.

Publicity requirements are introduced for the award of small public procurement contracts, through the obligation for contracting authorities to publish the call for proposals in their website. Contracting authorities shall ensure access of all interested persons to the call for proposals for a period of not less than 7 days.

The Waste Management Act is a fundamental regulatory act bearing relation to the implementation of OPE. Amendments to this act were enacted throughout the year with SG, No. 8/25.01.2011, No. 30/12.04.2011, No. 33 from 26.04.2011 and No. 99/16.12.2011. The amended act regulates that for an operation related to final disposal of waste through the deposit thereof into or onto land, each owner of a landfill shall be obligated to make monthly deductions to an escrow bank account of the relevant Regional Inspectorate of Environment and Water covering the territory wherein the landfill is located.

The resources accumulated during the operation period of the landfill shall be used for the closure procedure and after-care of the landfill site according to the permit or integrated permit and/or the landfill reclamation project approved by the competent environmental authorities. The amount of deductions per ton of waste landfilled shall be updated on a three-year basis.

For discharge of the obligation thereof related to the closure and after-care of the landfill site or of a section or cell of the said site, provided the necessary conditions for closure exist, the owner of the landfill shall submit an application to the Minister of Environment and Water or to an official empowered thereby for spending the amounts on the account. The amended act sets a time limit, starting to count from the discontinuance of the operation of the landfill, within which the landfill owner shall commence the implementation of the landfill closure procedures in accordance with the plan for closure of the landfill. Equally, persons whose waste is disposed of through the deposit thereof in a regional or municipal landfill shall make

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deductions whose purpose is to to reduce the amount of waste deposited and to encourage the recycling and recovery of the said waste. The deductions made by municipalities are elements of the expenses under the Local Taxes and Charges Act.

The resources accumulated shall be used for operations related to the construction of new municipal waste treatment installations ensuring the fulfilment by the municipalities of the requirements of this Act and the statutory instruments of secondary legislation on the application thereof.

Municipal Ownership Act

The two amendments of the act promulgated in SG, No. 15/18.02.2011 and No. 19/ 8.03.2011 regulate that real property owned by natural persons or legal entities may be expropriated coercively to meet municipal needs which cannot be met in other ways, on the basis of an effective detailed structural plan. Where the approved detailed structural plan envisages the development of sites of prime importance that are municipal public domain ownership, the municipal council may issue an effective order for allowing preliminary execution of the plan. This gives municipalities certain flexibility in the organization of expropriation procedures.

Decrees and Decisions of the Council of Ministers

DCM No. № 70/14.04.2010 on the coordination of EU funds management was amended to elaborate the responsibilities of the Minister for EU funds management. For the discharge of his functions he may be provided with the preliminary and final audit reports on the audits of the operational programmes, including Operational Programme “Fisheries Sector Development”, carried out by the Audit Authority of the operational programmes and by the Certifying Authority of the Rural Development Programme. The Minister for EU funds management watches over for overlapping of the technical assistance provided by international financial institutions towards efficient preparation, management and implementation of projects financed by EU funds and other available sources of technical assistance; coordinates the areas of intervention and the support activities and sees to their implementation; coordinates the activities under the JASPERS facility of the European Commission. The document specifies a deadline for each year by which the line ministries are to submit to the minister an indicative action plan for the sector they are in charge of and information on the performance of the action plan for the previous year with breakdown by sector.

DCM No. 121/31.05.2007 laying down the provisions for awarding of grants under the operational programmes co-financed by the Structural Funds and the Cohesion Fund of the European Union, and under the PHARE Programme of the European Union was amended and supplemented (SG, No. 34/29.04.2011 and No. 54/15.07.2011). Enacted are texts which imperatively prohibit persons falling under the hypothesis of conflict of interest or having interest in the approval of a project, including chairpersons and other members of commissions, to take part in the procedures for selection of project proposals. Minimum periods for submission of project proposals under the procedures are set out. The elements of the call which may be modified during the period for submission of projects are expanded to include cases of increased allocations to the call, elimination of technical errors or modifications in relation to the national policy in the field. Applicants are provided with the option to submit project proposals via the e-services module of the Unified Management Information System (UMIS) for the EU Structural Funds. It is further provided that beneficiaries may only object to a proposal for rejection of a project proposal at the phase of evaluation for administrative compliance and eligibility. The Head of MA shall designate persons to examine the validity of any objection filed and issue an opinion on the rationale of the objection within a specified period.

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DCM No. 155/06.06.2011 laying down the terms and conditions, criteria and procedure for financial support to municipalities for their access to finance from the Fund for Local Authorities and Governments (FLAG). The decree provides for an option to use resources from the Fund to cover a percentage of the interest and the servicing charges on the debt to the Fund. A methodology for determining the credit rating of municipalities on the basis of an integral estimate according to specified criteria, and for the grouping of municipalities, is introduced and used as a basis to calculate the percentage of reimbursement of the expenditure incurred by municipalities for loan servicing charges and interest payments.

CoM Decision No. 9/12.01.2011 approving the draft Agreement between the Ministry of Finance and the Bulgarian Development Bank on the terms and conditions of deficit financing of beneficiaries of Operational Programmes Transport, Environment and Regional Development from the Loan Agreement on a Structural Programming Loan between Bulgaria and the European Investment Bank, as amended, supplemented and elaborated, as well as the draft Guarantee Deposit Contract and draft Agency Contract annexed thereto as a basis for negotiations.

2.3. SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM

A number of important problems affecting the programme were identified during the implementation of Environment Operational Programme 2007 – 2013. These can be structured in the following major groups:

Problems concerning beneficiaries and measures taken to overcome them:

Need to strengthen the capacity of the municipalities to prepare and implement investment projects

As regards beneficiaries, the main problem consists in delayed preparation of projects for funding from OPE. Beneficiaries encounter problems at every stage of the preparation. Having in mind the need of specialised expertise for project preparation and management, that the municipalities often do not have, they very frequently seek external expert support. The external support is not always adequate and this fact leads to lower quality results and the beneficiaries do not have the possibility to control the process. This means that problems occur such as including ineligible costs, which leads to consequent change of the project scope and other documents, accordingly.

In addressing this challenge, MA of OPE took steps to help municipalities prepare and submit decent project proposals. Consultations to review prepared documents are organized before the project proposals are officially submitted. At the meetings, applicants can request explanations on the completion of the application form and on other procedure-related issues. On the basis of the consultations, MA of OPE issues opinions to candidates who can then submit project proposals.

Trainings provided to beneficiaries

• In the period 26 – 29 April 2011, the Intermediate Body of OPE conducted training, specialized for beneficiaries with ongoing projects, projects under evaluation within the two new procedures. The training aimed to strengthen the capacity of the beneficiaries in frequently mistaken areas such as reporting process, verification of requests for payments, irregularities, keeping of adequate audit trail, public procurement procedures;

• A training was held in December 2011 for beneficiaries under the new procedure BG161PO005/11/1.12/02/25 Improvement and development of water and waste water infrastructure in agglomerations of 2000 to 10 000 PE.

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The following table presents a summary of all initiatives addressing the beneficiaries, organized by the Managing Authority and the Intermediate Body in 2011:

Type of initiative Number Info days 2

Consultations 180

Reviews of documentations 125

On the spot trainings 6

Seminar type trainings 8

Other 1

TOTAL 322

By place Number In Sofia 180

Outside the working space and in the country 5

At the working space 11

Other 126

On-site support

A need to provide on-site support for the implementation of infrastructure projects under the programme was identified in 2011. Teams of technical assistants were set up as an upgrading measure in addition to the consultations at MoEW. They provide on-site support to the municipal teams in the initial phase of project preparation and implementation. Experts (jurists, engineers, economists) are dispatched in accordance with beneficiary’s stated needs. This measure not only helps to cut down the time for preparation and evaluation of project proposals but it also ensures the good quality of the tender documents, as well as result-oriented and faster project implementation. For the period after the announcement of this opportunity it became clear that the interest was very high and the available expert capacity is not enough.

By the initiative of the MA, on the spot visits were held in order to support/accelerate the preparation of project proposals in the water sector (Albena, Balchik, Varna) and in the waste sector (Gabrovo, Levski, Lukovit, Provadiya, Panagyurishte, Pleven, Yambol and Svoge).

Mobile teams are to be supported in their work by experts under JASPERS.

Involving JASPERS to step up project implementation in the WSS and Waste sectors

A plan envisaging active involvement in 2012 of JASPER experts in support of the implementation of 20 projects in the Water sector and of the projects in the Waste sector was prepared in late 2011. The specific themes of the support would be set additionally.

Procurement of co-financing by beneficiaries

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Another outstanding issue is the financing of municipalities’ own contribution to projects co-financed by EU Funds (in fulfillment of CoM Decision No. 705/2009) and whether the decision applies also to revenue-generating projects. Due regard needs to be given to the fact that municipalities’ own revenues are not sufficient to finance their own contribution to major infrastructure projects. Furthermore, the profitability of revenue-generating projects is formed by the charges to the users which are revenues for the operator and not for the owner of the investment. While this is in line with the Cost-Benefit Analysis methodology, it also distorts the real commitment for procuring the own contribution. Moreover, the lack of clarity on the implementation of the Water Act prevents a mechanism of engaging the operator in full or in part in the financing of beneficiary’s own contribution to the project. These facts prejudice the consistent and uniform implementation of this CoM Decision.

Procurement of municipal co-financing is a serious challenge as regards 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 an 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.

Public procurement procedures, resultant delay in the implementation schedule, and imposed financial corrections

As the end of this programming period is approaching, there is a need to step up the effective implementation of OPE projects. MoEW called upon municipalities with projects in evaluation to start preparing the public procurement documents for such projects. According to the OPE’s rules, it is admissible to organize public procurement procedures before the grant contract is signed. It is recommended that priority should be given to the preparation of public procurement documents for ongoing audit and technical assistance.

On the basis of an analysis of the causes for the irregularities committed in the award of public procurement contracts, MA and IB took actions to minimize the risk in the organization of procedures. Beneficiaries were provided trainings with focus on the most frequent irregularities. Information about the irregularities committed by individual beneficiaries of the programme and recommendations on how to prevent recurrence is published in the website of OPE.

Reduction of the administrative burden

The reporting process was facilitated in order to reduce the administrative burden on the beneficiaries. The monthly reports were eliminated because they did not prove to be adding value and also because of the perfunctory nature of the information presented therein. Under the new reporting procedure the focus is placed on the quality of the progress reports and the quarterly reports which provide complete information on the physical achievement of projects.

A number of measures were taken to address identified problems in the reporting and verification of expenditure incurred for project management and implementation remunerations under priority axis 3 of OPE. Following the approval of amendments to DCM No. 55/2007 which regulate facilitated assignment of tasks to individuals whose CVs have been evaluated, a sample form of an Order designating a management team for beneficiaries who are administrative structures was published in the OPE website. To facilitate the beneficiaries, instructions and a list of documents required for the reporting of expenditure related to the work of volunteers were published.

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Administrative capacity of the Management Authority and the Intermediate Body of OPE

Strengthening the capacity of MoEW by staffing it with engineering, finance and law experts

The project proposals submitted and the new calls announced brought to the front again the issue of the insufficient capacity of MA and IB to discharge their responsibilities under the Internal Rules for Evaluation of Direct Award Procedures. The two units as well as the other directorates of MoEW are understaffed with qualified experts to provide preliminary consultations and to participate in the expert working groups.

Measures were taken along several lines in order to address this serious challenge.

The key step taken by MA of OPE in cooperation with the other managing authorities consisted in focusing the attention of the Government on the need to attract specialized expertise at the central administration as well as at the beneficiaries. These efforts produced a proposal for establishment of the position of “Assistant for the Management of European Projects and Programs” to be held by highly qualified specialists with expertise in the fields required by MA. Given the high personal quality and expertise requirements to this staff, their remuneration was set at levels comparable and competitive with those in the private sector.

Following the set up of the position “Assistant for the Management of European Projects and Programs” and the respective changes to the manning tables of the administrations hosting the MAs of the operational programmes, the number of the permanent staff of the Cohesion Policy for the Environment Directorate (CPED) was increased by 15 expert positions and that of the EU Funds for Environment Directorate – by 20 positions. Nine assistants were appointed in CPED in 2011 Q1, by mid-2011 appointments were already 14 and at year end all positions were filled. Six assistants were appointed in IB by the end of March; by mid-year the appointments increased to 15 and reached 17 at year end. These are narrow specialists in fields covering the life cycle of projects – WSS, waste management, law and finance. With due regard to the main problem – the lack of decent project proposals, the newly appointed experts at MA were tasked with consulting beneficiaries during the preparation of project proposals and with the issuing of “preliminary opinions”. Keeping a close contact with the potential beneficiaries helps, not only to guarantee the quality of the approved projects but also to accelerate the preparation process as a whole.

The staff appointed at IB of OPE should help strengthen the processes of: ex-ante and ex-post control of documents, procurement procedures organized by beneficiaries, on-site checks to establish the physical implementation of projects, verification of requests for payment broken down by construction site, evaluation of submitted project proposals for financing from OPE.

Motivation of experts in MA and IB

Both directorates are aware that staff motivation needs to be enhanced as this is one of the mechanisms for keeping and attracting expertise. Methodology for determining the amount of the additional material incentives for the CPED and EUEFD staff was prepared and was approved by the Minister of Environment and Water. Experts’ contribution is assessed on the basis of indicators including level of performance of direct tasks, level of showing competence, behavior and attitude to the assigned tasks and competences, showing initiative and effort towards attainment of the objectives of the directorate.

The methodology taken on board helped to reduce notably the staff turnover and thus to keep and upgrade the available capacity; last but not least, the staff is motivated to develop and to invest maximum efforts towards the attainment of programme’s objectives. This was

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confirmed by EC Representative Carsten Rasmussen in his statement at the Annual Working Meeting of the Managing Authorities of operational programmes in Bulgaria in …….. 2012. He noted that the pace of implementation of OPE has accelerated notably, due to, among others, an almost zero staff turnover and the attracted highly-qualified experts with matching pay.

Enhancing the capacity through trainings

In order to strengthen and upgrade the administrative capacity of MA, the participation of experts in different trainings counts 270. The following topics were concerned:

No. TOPIC 1. Waste Management. European rules and practices 2. Design and construction of regional landfills 3. Design and construction of water supply and sewerage networks

4. Management of construction engineering contracts (using FIDIC conditions of contract)

5. Practical management of contracts under Red and Yellow Book FIDIC

6. Infrastructure projects funded by the EU - development, analysis and evaluation of their implementation

7. Financial corrections 8. Cost-Benefit Analysis

9. Approval and calculation of costs for funding by the ERDF and CF revenue-generating projects

10. Basic knowledge of Visual Basic and their application for automation of tasks in MS EXCEL

11. Processing of large amounts of information with MS EXCEL with DATABASE and LOOKUP functions

12. Presentation skills. MS POWER POINT 13. Analyzing data with PIVOT TABLE in MS EXCEL 14. Spreadsheets with MS EXCEL 15. Functions in MS EXCEL 16. Project management with MS PROJECT

17. Business skills - managing meetings, negotiations and presentations (in English Language)

18. Audit of EU projects 19. Internal and external audits of projects and programs financed by EU 20. Operational risk 21. Practical guide to risk assessment and controls

22. International Conference on Evaluation: What's new and what works in the field of EU Cohesion Policy in 2007-2013: findings and lessons for the programming period 2014-2020

23. State aid and income: Control of specific risks 24. Practical Skills for declaring and managing conflicts of interest 25. Conflict of interest - legal framework and practices

26.

Lessons learned from the Court of Justice in Luxembourg and the final decisions of the Commission for Protection of Competition. Legal protection of financial interests of the Community against irregularities in the expenditure of funds through the new codified rules of public procurement in the amended PPA

27. Prevention of irregularities and fraud in the absorption of Structural Funds 28. Mechanisms to counteract corruption in public procurement 29. Counteraction to corruption in the management and control of EU funds

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30. Professional work discussion of the upcoming changes in the PPA to address specific problems of practice

31. Investment projects - construction, water and road infrastructure - as an object of the contract the OPE OPRD OPT and RDP

32. Practical issues on the implementation of public procurement. The practice of the Supreme Administrative Court, the Committee for Protection of Competition and the National Audit Office in public procurement

33. Preparation of technical specifications for procurement associated with implementation of the CP OP

34. Public procurement practical problems and expected changes

35. How to apply the codified PPA from 2011: Ex-ante and Ex-post control and framework agreements, in-house procurement

36. Practical application of the Public Procurement Act and avoidance of common breaches

37. New moments in awarding and control of public procurement - causes and consequences

38. Legislation and implementation of the Civil Procedure Code 39. Practical issues in implementation of the Administrative Code 40. Spatial Planning Act - Practical problems in energy and infrastructure projects 41. Participation of Bulgaria in the process of decision making by EU institutions 42. Environment, climate and the future financial framework of the EU 43. The new regulations, new operational programmes 44. State Protocol and Ceremonial 45. Development of projects financed by EU funds 46. Developing projects under Operational Programmes

47. Management, monitoring and reporting on projects under the Operational Programmes

48. Technical assistance for EU Structural Funds 49. Sixth annual European symposium "EU Funds in 2011"

50. Accounting of funds in the budget on projects financed under Operational Programmes

51. Verification of requests for funds: detection, removal and prevention of errors in the verification process

Experts from EU Environment Funds Directorate (EUEFD) were involved in the following specialized trainings aiming at strengthening the administrative capacity of the staff of OPE IB:

No. Topic 1. Current problems and solutions in the design and financial optimization of projects for

sewage treatment 2. Design and construction of water supply and sewerage networks 3. Design and construction of DWTP and WWTP 4. Design and construction of regional landfills 5. Presentation of the changes in the new NFD № 6/21.10.2010- organization of the

accounting process. 6. Verification. Improving prevention, detection and correction of errors 7. Verification of requests for funds: detection, removal and prevention of errors in the

verification process 8. Training in Brussels on the issues of double funding 9. Control, audit and accountability in public administration 10. Counteraction to corruption in the management and control of EU funds

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11. Practical Skills for declaring and managing conflicts of interest 12. Annual Forum on Fighting Corruption in the EU 2011 13. How to build a successful European partnership for better absorption of EU funds 14. Management of construction and engineering contracts (with contract conditions of

FIDIC) 15. Practical management of contracts under FIDIC Red and Yellow Book. 16. Infrastructure projects funded by the EU - development, analysis and evaluation of their

implementation 17. Developing projects under Operational Programmes 18. Management, monitoring and reporting on projects under the Operational Programmes 19. European Integration and Regionalism: European economic integration and regional

development 20. Project Management 21. Spreadsheets with MS EXCEL (advanced) 22. Functions in MS EXCEL 23. Project management with MS PROJECT 24. Amendments to regulations the Public Procurement, practical issues and solving

working case studies on implementation of the PPA and specifics in the implementation of control over procedures for procurement financed by EU funds

25. Practical implementation of the PPA and avoidance of common breaches 26. Investment projects - construction, water and road infrastructure - as an object of the

contract the OPE OPRD OPT and RDP 27. SPA and practical problems in energy and infrastructure projects

Trainings and exchange of experience abroad

In order to strengthen the administrative capacity, experts from the MA and IB participated in working groups in Barcelona and Valencia (Spain), Rome (Italy) and Lisbon (Portugal). The meetings allowed the participants to explore the programmes in the environmental sector of other member states and to draw inspiration from best practices from their implementation. The working visits in Valencia with a specific theme, aimed at exchanging good practices and expertise for projects in "water" sector (3-7.07.2011) and "waste" sector (19-22.09.2011). Ideas generated during the visits organized in 2011, helped to incorporate new techniques in the work process towards improving the management and implementation of the OPE.

In implementation of Order № RD-OP-39/08.07.2011 of the Minister of Environment and Water an unified conception of disposal of sludge from urban wastewater treatment (WWTP) at national level was developed. The Expert Working Group (EWG) collected and analyzed information on established and upcoming construction of treatment plants. Options were considered for treatment of sludge generated by them and the opportunities available in the country for their recovery and disposal. The information is presented analytically and tabulated as a geographical database. In parallel there was a review of existing legislation permitting the use / recycling of sewage sludge for various purposes. To achieve the objectives of the task EWG made a visit to Spain to exchange expertise and best practices with other EU Member State.

The trainings of staff of the Directorate "Cohesion Policy for Environment" and "EU Funds for Environment" are an important tool for systematic and focused capacity building of staff in the structures. The participation of experts in workshops and seminars in 2011 had an impact on the effective and efficient performance of their duties, and hence contributed to better management of projects financed under OP "Environment 2007-2013".

Other

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Delayed water sector reform:

According to the Water Act, the Minister of Regional Policy and Public Works implements the national policy for the activities of operation, construction, reconstruction and modernization of the water supply and sewage systems and facilities of the settlements (Article 10 (1) 1); coordinates the work of WSS associations (Article 10b (2) 4) and is the principal of the WSS companies where the State is the sole owner of the capital and of the companies with state interest in their capital.

WSS play a critical role during the preparation, implementation and operation of the projects completed with grants from the operational programme.

At 2011, the operators providing WSS services in Bulgaria are state, municipal or joint-venture commercial companies which are faced with the challenges presented by the launched water sector reform which was called upon by the need to regulate the fragmented ownership of WSS assets in Bulgaria and to ensure sustainable development and operation of the infrastructure. According to the amendments to the Water Act, the WSS infrastructure shall be public state or public municipal property. The WSS systems shall be managed by WSS associations.

Not reaching the contracting and payment targets under OPE:

Reasons

• Lack of decent project proposals.

In order to ensure the high quality of the submitted project proposals, back in 2010 MA introduced a requirement that only projects with issued preliminary opinions for compliance with the requirements they have to satisfy shall be registered for evaluation. For each project proposal, the territorial units (TU) of MA have made recommendations in the opinions issued, but the beneficiaries lack the will or the ability to effect the recommended corrections because the final acceptance of the work of contractors has been completed. Thus, project proposals that have not complied with the recommendations made in the opinion are submitted for evaluation. Such an approach by the beneficiaries has created serious problems for the evaluation committees which have to send the documents back for rework more than once. Whenever a project is sent back for rework the time for evaluation ceases to count because in most cases the beneficiaries have requested extension of the period specified by the expert working group. All project proposals have been evaluated within the regulated period (66 working days), but when the time for rework is added, the period of evaluation considerably exceeds the regulated levels.

• Appeal of public procurement procedures announced by beneficiaries.

The economic and financial crisis caused market shrinkage in many sectors, including construction and design. The fresh funds under the operational programmes are the necessary “breath of fresh air” for the business, so the cut-throat competition for winning public procurement contracts under OPE continued in 2011. Fifteen companies on average purchase tender documents for the announced calls for proposals and minimum 5 apply. Under these circumstances, there is an abundance of appeals against the decisions for selection of contractors by discontented candidates. Some appeals are unreasonable, but going through every step of the procedure (CPC and SAC) takes months during which the beneficiary cannot sign the contract with the selected contractor and start implementing the project activities.

• Hard evaluation process

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Having in mind certain unclear moments in the project proposals, the evaluation process takes a long period of time. Also, after the comments of the EC regarding the evaluation of projects under priority axis 1 (2009), the evaluation procedures required too many documents, a fact that harden the project proposal submission process. Also, when non-compliance in the documents is found, another delay in the evaluation process appears.

Measures taken by the OPE team to step up programme’s implementation:

• Support to the WSS reform

The successful and accelerated WSS reform is a necessary prerequisite for the effective planning, management and operation of the infrastructure built or rehabilitated with European funds.

Well aware of its responsibility for the process, MA of OPE proposed and the MC members approved an addendum to OPE by which a new activity for strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector, for sustainable development of the WSS infrastructure, with MRDPW as beneficiary was included.

• Rigorous control and regular analysis of the financial implementation of OPE

The Managing Authority of OPE conducts regular analysis of programme’s financial implementation with a view to taking timely action to step up the pace of verification of the requests for payment submitted by beneficiaries. An additional measure aiming to improve programme’s financial implementation was introduced in 2011 – preparing of quarterly action plans for verifications and payments under the programme. Cognizant of the positive effect of this approach of stricter control on the documents submitted for verification, MA, in cooperation with IB, continues to apply this method of work also in the current year. Thus, by setting shorter-term and more specific objectives it is possible to better track their implementation and take corrective measures if delays are established. The action plan is prepared on a quarterly basis, but the operational programme experts make regular reviews and ongoing analysis of implementation against the targets on a monthly basis.

• Signing of preliminary contracts with beneficiaries

On the basis of the regular review of OP’s implementation in 2011, a need to step up the negotiation with beneficiaries while projects are still in the evaluation phase was identified. This has three concurrent effects – it accelerates the pace of contracting by MA, gives security to the beneficiaries and enables them to announce public procurement procedures. In consequence, commercial contracts can be signed and thus the implementation of construction works is stepped up and compliance with the deadline for project completion is ensured. Meetings with municipalities with projects in evaluation have been held since the beginning of 2012 to explain the purpose and conditions at which preliminary contracts can be signed. This is admissible in case of a confirmed scope of the investment or upon a first opinion by the Expert Working Group. The first beneficiaries that benefited from this opportunity were Sofia Municipality – for Phase I of the regional system, as well as Plovdiv Municipality and Dobrich Municipality for their water projects, which announced public procurement procedures for construction works and supply at a value of 200 MBGN.

• Active support to beneficiaries

The lack of competitive element on the new procedures under OPE leads to more active and quality dialogue with the beneficiaries at every stage of the project, and this on the other hand is a precondition for obtaining better project proposals. These measures improved the management and the implementation of the programme, but also require more efforts from the

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Managing authority and the Intermediate body of OPE. After determining the problem areas, a new set of measures was undertaken: additional review of the projects, signing of annexes to the contracts, amendments of the systems for financial management and control etc.

• Simplifying the documents, required to submit a project proposal

In order to accelerate the evaluation process, with the announcement of the call for proposals BG161PO005/11/1.12/02/25 “Improvement and development of water and waste water infrastructure in agglomerations of 2 000 to 10 000 PE.”, the Managing authority significantly simplified the required documents, such as there is no need to present documents, preceding or being necessary for the issue of another document.

2.4. CHANGES IN THE CONTEXT OF THE OPE IMPLEMENTATI ON (IF RELEVANT)

At the Tenth Meeting of the Monitoring Committee (MC) of OPE held on June 10, 2011, the committee members approved amendments to item 1.4. “Typology of activities within the priority axis” adding a new sub-paragraph 8 “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector, for sustainable development of the WSS infrastructure”. In item 1.7 “Beneficiaries”, “structures of the Ministry of Regional Development and Public Works engaged in the coordination and control of the WSS reform” was inserted. The approved financing of measures to strengthen the capacity of the WSS associations and for WSS reform will contribute to a successful reform of this sector because MRDPW coordinates the operation of WSS associations and is the principal of the WSS companies in which the State is the sole owner of the capital or has interest in the capital. The addendum will support the provision of technical assistance and capacity building in WSS associations and operators, as well as the design of strategic documents on the management and development of the WSS sector.

A written decision-making procedure was initiated on November 2, with a letter of the Chairperson of the Monitoring Committee Mrs. Ivelina Vasileva 2011 on the grounds of Article 7 (1) of MC’s Internal Rules of Procedure.

The following documents were submitted to the MC members for approval:

• Amendment to the Strategic Plan for Technical Assistance for the period 2007-2013. It brings clear prioritization to the financial resource under priority axis 4 by including activities for support of the preparation for the next programming period.

• Project selection criteria for the procedures “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector, for sustainable development of the WSS infrastructure” and “Designing of flood risk management plans”.

• A proposal for a new approach of direct grant award for “Implementation of activities for planning and management of parks and reserves” under priority axis 3 of OPE. It enables direct grant award to Nature and Natural Park Directorates and RIEWs (for activities in reserves and managed reserves) throughout the remaining period of OPE. Beneficiaries plan activities on a long-term and comprehensive basis, with due regard to the management plan or the needs of the territory concerned.

More than half of the voting members submitted positive opinions by the submission deadline and, on that basis, the documents proposed were approved.

At the Eleventh Meeting of the Monitoring Committee the committee members approved amendments to the “Mechanism for development of the waste management infrastructure

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with the assistance of OP Environment 2007-2013”. An analysis by MA established that after contracting for the establishment of the 19 regional waste management systems (RWMS), under the assumptions made in the analysis a resource at 145.3 to 253.7 MBGN should remain available. It can cover not only the needs of the projects envisaged under the Mechanism, but also other measures and projects.

The Mechanism provides an option to reallocate the available resource to other necessary measures in case of identified delay or savings on priority projects, with a view to ensuring absorption of all funds and the financing activities for compliance with the legislation. In that light, the available resources under priority axis 2 of OPE, as stated in the analysis, can be redirected to finance:

• Projects for reclamation of the old municipal landfills, including projects envisaged for funding under DCM No. 209/20 August 2009 on financing the establishment of the regional municipal waste management systems, the regional facilities for pre-treatment of municipal waste and the closure of municipal landfills (DCM No. 209/2009). This will support compliance with Directive 1999/31/EC at times of financial crisis when national funding is scarce;

• Project financed from the Technical Assistance under OPE – for completion of RWMS – additional cells, pre-treatment facilities, composting facilities – towards compliance with the Waste Framework Directive – for example RWMS for Omurtag, Haskovo, Razgrad regions, among others.

To that end, the Mechanism for development of the waste management infrastructure with the assistance of OP Environment 2007-2013 was amended to allow for:

• Award of grants to projects beyond the 23 RWMS developed under OPE TA, for completion of the regional systems under NWMP;

• Financing the closure (reclamation) of old municipal landfills from OPE.

2.5. SUBSTANTIAL AMENDMENTS UNDER ARTICLE 57 OF REGULATI ON (EC) NO. 1083/2006 (IF RELEVANT)

Over the reporting period, there have been no substantial modifications under Article 57 of Regulation (EC) No. 1083/2006.

2.6. COMPLEMENTARITY WITH OTHER INSTRUMENTS

In 2011, there were no changes to the demarcation of OP Environment 2007-2013 with the other EU-funded operational programmes.

Demarcation with the Rural Development Programme:

Funding under priority axis 1 of OPE can receive either municipalities with agglomerations of over 2000 PE and/or municipalities included in Annex 7 of OPE. Activities for construction and improvement of water and waste water infrastructure in settlements of 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.

In 2011, the implementation of OPE in the Water sector is focused entirely on agglomerations of over 10 000 PE, but preventive mesures have been taken to adhere to the demarcation. (see Measures to avoid double funding in OPE.)

Demarcation with the Regional Development Programme:

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The financing of water supply and sewage activities for settlements of over 2000 PE falls under the responsibility of the MoEW and OPE. Regional Development OP only finances, as necessary, activities for construction, reconstruction and rehabilitation of water supply and sewage connections and facilities linking major networks to single sites of the economic and social infrastructure eligible for financing under Regional Development OP.

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 (seven hundred) million euro for the provision of co-financing to projects which are expected to benefit from grants by the EU over the programming period 2007-2013.

The Fund for Local Authorities and Governments (FLAG) provides support to municipalities for the successful implementation of projects under the operational programmes, by making available funds for bridge financing of municipal costs for project proposals. The fund cooperates with the MAs of the programmes, the highest percentage of applications for loans coming from the beneficiaries of OP Regional Development and OPE. The financial instrument provides different levels of assistance to municipalities.

The tendency for municipalities to use FLAG mainly for preparation of projects for financing from Ops persists in 2011. Ten loan contracts at a total of BGN 10 698 622 were concluded with municipalities that are beneficiaries under OPE, with lending registering slight increase on the previous year. The credited projects are only in the water sector, including 8 for technical assistance and 2 infrastructure projects.

The Fund provided lending to the following municipalities: Brezovo, Gurkovo, Valchedram, Kubrat, Omurtag, Straldzha (two projects), Dimitrovgrad, Lom, Yakoruda, and Ruen.

Procedure under OPE OPE procedure Number of projects for

which lending is provided

Amount of approved loans

(BGN) BG161PO005/08/1.30/01/01 Technical assistance for preparation of projects under Priority Axis 1

7

2 951 415.25

8 683 215.20

BG161PO005/08/1.10/01/02 Improvement and development of water and wastewater infrastructure

3

7 248 207.46

33 748 144.26

BG161PO005/08/3.0/01/05 “Preservation and restoration of the biodiversity in Bulgaria”

1

266 351.54

891 133.16

TOTAL 11 10 465 974.25 43 322 492.62

Of these, Gurkovo, Dimitrovgrad, Lom and Kubrat applied under the procedures for over 10 000 PE; the other municipalities fall in the 2 000 - 10 000 PE range. They have submitted

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their documents within the time limit for submission of pre-investment studies and have declared availability of a project pipeline.

MA of OPE maintains intensive contacts with the Fund’s staff and exchanges on a regular basis information about the contracts concluded under the operational programme and the loans extended to municipalities.

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 aiming to prevent double funding across operational programmes. UMIS has been developed in accordance with the requirements under the European Structural and Cohesion Fund regulations which provide for having in place reliable monitoring and financial reporting 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”. With a view to making available complete information on EU-financed projects, an interface between the Integrated Administration and Control System supported by State Fund Agriculture and UMIS was developed in 2010. Thus, the projects for construction/rehabilitation of water supply and sewage infrastructure financed under Measure 321 “Basic services for the economy and population in rural areas” can be registered in UMIS and MA of OPE can make the necessary checks before financing such projects

In addition to the opportunities provided by UMIS, OPE has in place its own mechanism for avoiding double funding, laid down in the operational programme and in Article 26(1) of DCM 121/2007, which functions within the Committee for Selection and Coordination of Projects (CSCP).

The nominal composition of CSCP is designated with Order RD-345/07.04.2010, as amended with Order RD-OP-41/08.12.2010 and Order No. RD-OP-57/20.10.2011 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 specialized 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 collect 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 Rules of Procedure approved with Order RD-OP-31/2.12.2009 of the Minister of Environment and Water. It checks each one of the projects and activities thereof, proposed for financing in the report of the evaluation committee, 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 operations proposed for financing under OPE. In the direct award procedures, this check is conducted through a written procedure within the evaluation of the project proposals by the expert working group.

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In 2011, CSCP held 14 meetings in absentia on the procedures announced and implemented under OPE, including 2 on Procedure 19 (priority axis 1), 8 on Procedure 16 (priority axis 1), 3 on the waste sector and 1 on biodiversity. Two in-person meetings were held on procedure BG161PO005/10/3.0/2/20 “Activities for preservation and restoration of biodiversity in Bulgaria” and procedure BG161PO005/11/3.1/02/23 “Development of management plans for special protection areas for birds not overlapping with special protection areas for habitats”. Additional information was requested at the meeting from the candidates and the committee members and the cases of suspected overlapping of activities were clarified. On the basis of the information provided as requested, the suspicions were clarified and grant contracts were concluded with the candidates. 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 Monitoring Committee of the OPE was set up pursuant to Article 63 of Regulation (EC) 1083/2006 and in accordance with the partnership principle.

The members of MC were determined with Order No. RD-OP-68/24.11.2011 of the Minister of Environment and Water in accordance with DCM No. 182/21.07.2006 on establishment of the Monitoring Committees of the National Strategic Reference Framework and the Operational Programmes co-financed by the EU Structural Funds and Cohesion Fund (last amended, SG, No. 54/15 July 2011). MC of OPE ensures efficient and quality implementation of the programme by examining and approving the criteria for selection of projects for funding, examining and approving the annual and final reports on implementation of the programme and other strategic programming documents, and by monitoring the progress on programme’s implementation.

In 2011, MC of OPE held two in-person meetings and one written procedure.

At the Tenth Meeting of OPE MC held on June 10, 2011, the committee members discussed and approved the 2010 Annual Progress Report of OPE. The EC representatives highlighted the notable progress achieved on programme’s implementation and the transparent preparation of the report. They commended the detailed presentation of the challenges, difficulties and the measures undertaken for the successful and accelerated implementation of OPE. The committee approved an addendum to the OP in support of the WSS reform in Bulgaria. According to the addendum, eligible for funding from OPE are the setting up of a special unit at the Ministry of Regional Development and Public Works, the capacity building at WSS associations and operations, and the preparation of strategic documents for WSS sector development.

At the Eleventh Meeting of OPE MC held on December 6, 2011, the committee members approved proposed amendments to the Management Mechanism of priority axis 2 to include as eligible activities the reclamation of municipal landfills and activities for upgrading and completion of regional waste management systems beyond the 23 included in the document. Financial resource for these activities is released from savings on projects near completion. The amendments will ensure full absorption of the funds earmarked for the Waste sector in the OPE budget.

A written decision-making procedure was initiated on November 2, 2011 with a letter of the Chairperson of the Monitoring Committee Mrs. Ivelina Vasileva, on the grounds of Article 7 (1) of MC’s Internal Rules of Procedure.

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The following documents were submitted to the MC members for approval:

• Amendment to the Strategic Plan for Technical Assistance for the period 2007-2013.

• Project selection criteria for the procedures “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector, for sustainable development of the WSS infrastructure” and “Designing of flood risk management plans”.

• A proposal for a new approach of direct grant award for “Implementation of activities for planning and management of parks and reserves” under priority axis 3 of OPE.

Within the time limit for submission of opinions, 27 positive and 0 negative opinions were submitted by total 57 members, including 49 voting members, representing more than half of the voting members. According to MC’s Internal Rules of Procedure, if more than half of the voting members have submitted positive opinions, the decision is carried.

The result of the written procedure is that MC of OPE approved the proposed decisions.

INFORMATION SYSTEM FOR MANAGEMENT AND CONTROL OF THE RESOURCES FROM THE EU STRUCTURAL AND COHESION FUNDS

A centralised information system (UMIS) for management and control of funds from the EU SCF 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 tool controlling the access of the individual users in accordance with their administrative rights and obligations. To that end, experts from the IB and MA of OPE and the Internal Audit Directorate (IA), designated with an order of the Minister of Environment and Water, have access rights to certain modules of the UMIS.

The latest amendments to the procedure manual of OPE (September 2011) provide an option for e-application and e-reporting via UMIS. In that light, tests are being run on the test version of UMIS. Test-run submission of a project proposal, evaluation and reporting in UMIS is pending for priority axis 4.

In October 2010, part of the information in UMIS was made publicly available with the disclosure of data on the contracts concluded under the seven operational programmes – open to the public are financial data, data on the priority axes of the programmes and data on the individual projects.

The main modules used by the authorized MoEW experts include:

Registration (of project proposals and contracts). IB experts use the module to enter information on priority axes 1, 2 and 3, MA experts – on priority axis 4;

Financial module. The experts in the financial departments of the two directorates enter and process information on priority axes 1, 2, 3 (IB) and 4 (MA).

Irregularities and On-site Checks. Data on committed and reported irregularities under priority axes 1, 2 and 3 are entered in the module by the irregularities officers. From September 2011, such officers are concentrated only in MA of OPE.

Project management. The experts in the monitoring departments of the two directorates enter and process information on priority axes 1, 2, 3 (IB) and axis 4 (MA).

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Information on the project management cycle of operations under the different operational programmes is uploaded in the "Project Management" module. Under OPE in particular, beneficiaries prepare quarterly reports (or a project progress report to a payment request) which for priority 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 priority axis 4 are uploaded by experts from MA. The performance of the experts entrusted with the above tasks is subject to control by an officer designated with an order of the Minister of Environment and Water.

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.

Profiles of all officers in the EUEFD whose job descriptions and official duties imply access to UMIS have been elaborated.

CPE Directorate has created profiles of all of its officers (except for the Technical Unit staff) with a view to achieving flexibility and streamlining the work of the directorate.

In 2010 and 2011, an audit team from the Audit of EU Funds Executive Agency (AEUFEA) carried out second and third System Audit to evaluate the effective functioning of the Information Systems for management and control of the Structural and Cohesion Funds, aiming to assess the effective functioning of the Information Systems for management and control of the programmes financed from the European Social Fund, the European Regional Development Fund and the EU Cohesion Fund.

The purpose of the audits was to obtain reasonable assurance that the Information Systems used are able to provide reliable and relevant information (assess procedures for ensuring system support; data protection and integrity procedures; check whether systems provide all information required under Annex III of Regulation 1828/2006).

On the basis of the combined assessment of the available information and the specific results from the follow up on the actions taken to fulfill the recommendations of the second system audit, the conclusion in accordance with the objectives of the audit commitments is:

Category 2 “Works but some improvements are needed”.

Due regard has been given to the findings and, to date, the recommendations are fulfilled.

2.8. NATIONAL PERFORMANCE RESERVE (WHERE APPLICABLE AND ONLY FOR THE ANNUAL IMPLEMENTATION REPORT SUBMITTED FOR 2010)

Not applicable.

3. IMPLEMENTATION BY PRIORITY

3.1. PRIORITY AXIS 1 “I MPROVEMENT AND DEVELOPMENT OF WATER 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 of the priority

Indicator 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

Result indicators

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Indicator 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

Result indicators

Indicator 1:

Population connected to WWTP

Achievement

0 0 0

0.10%(6)

2.40%

1.58%(6)

49.18%

Target (1) 0 0 0

58.04%

66.46 % (2)

Baseline 40.5 % (3)

40.5 % (3)

40.5 % (3)

40.5 % (3)

Indicator2:

(core indicator)

Additional population served by waste water projects

Achievement

0 0 0 65

893(5) 116 557

182 450

Target (1) 0 0 0

1 295 000

1 845 000

Baseline 45 000

45 000

45 000

45 000

Indicator 3:

New and rehabilitated WWTP

Achievement

0 0 0 2 1 3

Target (1) 0 0 0 22 65

Baseline 1(4) 1(4) 6(4) 11(4)

(1) In the OPE, target values 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 Environment OP 2007 - 2013. (3) NSI statistical reference book “Environment” – the data is for 2004. Afterwards the NSI published data for 2007 (42.2 %), 2008 (43.8%) and 2009 (45.2%) (4) The baseline value refers to WWTPs completed with financial assistance from ISPA. (5) The value refers to projects commissioned at 31.12.2010. With the projects commissioned in Q1 of 2011, total connected PE make up 155 171. (6) Data refers only to OPE contribution to the overall value of the indicator. The value of 2,40% is the achievement on the indicator at national level.

* Achievements, other than those presented in the table above, completed by implementation of infrastructure projects:

1. Sewage network:

- 95.49 km in new sewage network and 20.94 km in rehabilitated sewage network

- 24.92 km in new collectors and 0.58 km reconstructed collectors

2. Water supply network

- 29.81 km in new water supply network

- 68.62 km in rehabilitated water supply network

3. Pumping stations – 3.

4. Pumping collectors – 4

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5. Collectors - 7


At end of 2011, under implementation are 96 grant contracts and 1 grant order, including 55 for technical assistance for preparation of projects in the sector, 23 for construction of WSS infrastructure, 16 contracts under procedure BG161PO005/10/1.11/03/19 and 2 contracts under procedure BG161PO005/10/1.11/02/16. The project with Blagoevgrad Basin Directorate as beneficiary is implemented under an order of the Minister of Environment and Water.

In 2011 in the water sector 48 projects for technical assistance (39.5 MBGN) and 3 under procedure BG161PO005/08/1.10/01/02 (of Primorsko, Valchi Dol and Burgas – Dolno Ezerovo Neighborhood municipalities, at a total value of 30.4 MBGN) were completed. The total amount of the savings by the end of 2011 is 22.2 MBGN.

Since the start of the programme to the end of 2011, there are 53 completed projects for technical assistance (43.6 MBGN) and 3 construction projects (30.4 MBGN). The total amount of the savings since the start of the programme is 22.4 MBGN.

Under the technical assistance procedures 185 public procurement procedures were envisaged. Of these, 158 were completed, 5 are in the assessment, 4 were terminated, while 18 are under preparation. Under the procedure for construction, the announcement of 240 procurement procedures was scheduled, by the end of the year 157 were completed, 4 were announced, 2 are under evaluation, 1 was appealed, 76 are under preparation. Under procedure BG161PO005/10/1.11/02/16, there were 34 scheduled public procurement procedures, 3 were completed, 1 was announced and 20 are under preparation. Under procedure BG161PO005/10/1.11/03/19 26 public procurement procedures were completed, 20 are under implementation, 7 are announced and 28 are under preparation.

In consequence of the amended WSS legislation and the recommendations for introduction of economic efficiency criteria for projects, requirements for economic efficiency and ecological and technical appropriateness, as well as restrictions to the scope of projects eligible for funding from OPE were introduced in 2010 in order to ensure sound financial management and the focus of the limited resource.

In order to ensure the good quality of the projects approved for funding, MA introduced starting from July 1, 2010 the practice of preliminary consultations provided by experts and assistants from CPED to potential beneficiaries of Water sector projects. In 2011, 167 individual consultations were held with beneficiaries of the above two procedures (total 250 consultations since July 2010). On the basis of the consultations on procedure BG161PO005/10/1.11/02/16, MA of OPE issues to each candidate a one-off written opinion on compliance of the core parameters of the project proposal – a document required for the submission of project proposals. The purpose of the meetings of MoEW experts with representatives of the beneficiaries is to facilitate preparation and improve the quality of the submitted project proposals. In consequence, evaluation is stepped up and the quality of project implementation is improved.

The financial framework of the announced at the end of June 2010 procedure BG161PO005/10/1.11/02/16 with a total grant amount of 600 MBGN was doubled to BGN 1.2 billion in November 2011 in view of the large number of projects in the pipeline and the high investment needs of the beneficiaries, the financial framework. Eighty-four project

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proposals with a provisional total value at more than 3.09 billion BGN were registered by the deadline for submission of applications – 20 February 2012

The first two contracts under the procedure were signed in 2011 Q4 – with Triavna and Tervel municipalities, totaling 30 MBGN in value. The project of Parvomay municipality (37.2 MBGN) was disqualified in the evaluation phase because of the extremely poor quality of the documents submitted for evaluation. By 30 March 2012 7 contracts were signed of the total amount of 133.2 MBGN. Another 5 contracts with the total amount of 145.3 MBGN.s

The financial framework of the announced in August 2010 procedure BG161PO005/10/1.11/03/19 “Preparation and Implementation of Projects for Improvement and Development of Water and Wastewater Infrastructure in Agglomerations with over 10 000 PE” with a total grant amount of 600 MBGN was increased to 850 MBGN after reviewing the submitted project proposals.

Twenty-seven project proposals at a total value of more than 966 MBGN were submitted by the deadline for submission of documents – June 30, 2011.

By the end of 2011 14 contracts were signed for the total amount of 493.4 MBGN. The investments will be in the following municipalities – Aytos, Dryanovo, Chirpan, Radomir, Razlog, Popovo, Levski, Elin Pelin, Smolyan, Tutrakan, Razgrad, Burgas (Sarafovo), Pazardzhik and Ihtiman. The projects of Kavarna, Varna (Zlatni Pyasatsi) and Balchik (Albena) were approved. At 17 February 2012, the contracts signed total 26 in number and almost 915 MBGN in value. At this stage, Nova Zagora municipality is not signing the agreement on the grounds of its deteriorated financial condition. The grant approved for this project is 27.8 MBGN.

In connection with the preparation of projects under the procedure for agglomerations of 2000 to 10 000 PE, 127 pre-investment studies (PIS) were submitted by the deadline for submission of PIS. Working meetings with the beneficiaries were held at MoEW in December 2011, at which experts from MA and IB provided explanations on the key application guidelines, the experience gained so far and on how to avoid the most frequent irregularities. In order to identify the projects that are at the highest level of maturity, MA requires from the beneficiaries reports on available accompanying documents (building permit, EIA, passage rights, approved plans for a detailed structural plan (DSP), changed purpose of the terrain for WWTP, etc.)

Procedure BG161PO005/11/1.12/02/25 “Improvement and development of water and waste water infrastructure in agglomerations of 2 000 to 10 000 PE.” with grant amount at 300 MBGN was announced in November 2011. Eligible beneficiaries include 147 municipalities with 236 agglomerations on their territory. Six meetings with representatives of eligible beneficiaries were held in December and were attended by 172 participants from 102 municipalities. The application conditions conditions were explained and answers to identified cases and issues were provided at the meetings.

By the deadline for submission of pre-investment studies (January 31, 2012), 145 municipalities submitted a total of 197 pre-investment studies to MA of OPE.

The Managing Authority conducted preliminary review of the submitted pre-investment studies which established that most of them contain a lot of omissions and inaccuracies. This necessitates prioritization on the following criteria: a need to construct a WWTP with a view to catch waste water discharged without treatment; connection of a large number of PE to WWTP; and project pipeline. Prioritization will be made by April 15, 2012 at the latest.

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Procedure BG161PO005/11/1.3/02/28 “Strategic planning and strengthening of the capacity of the structures involved in the reforming of the WSS sector, for sustainable development of the WSS infrastructure” with MRDPW as specific beneficiary was announced on January 18, 2012. The specific purpose of the procedure is to support the successful reform of the WSS sector and the sustainable development of the WSS structure in Bulgaria.

The projects “Integrated project for improvement of the water sector in Dobrich – Phase I” totaling almost 113 MBGN in value and “Plovdiv integrated water project – Phase I” with a total value of more than 125.7 MBGN were sent to the European Commission for evaluation in January 2012. The Project “Rehabilitation of the water supply and sewage network and construction of WWTP for Asenovgrad, Bulgaria” totaling 109 MBGN in value was submitted for evaluation in early March 2012. On 19 April the EC sent letters with request for additional information concerning the first two projects.

Ten OPE-funded water sector investment projects have been commissioned since the beginning of 2011:

• Construction of Dolno Ezerovo Neighborhood sewage system and pressure collector to WWTP, Burgas Municipality, total project value - 5.4 MBGN;

• Implementation of Phase I of Troyan Water Cycle Project, total project value - 7.9 MBGN.

• Construction of 4 main sewerage collectors on the territory of Ovcha Kupel residential district – Sofia municipality (2 collectors were constructed in 2011), total project value – 10.6 MBGN

• Integrated project for improvement of the water sector of Hissar: Component 1. Extension, reconstruction and modernization of Hissar WWTP”, total project value - 22.2 MBGN;

• Development of the waste water infrastructure in Kavarna –Construction of main collector VI and the relevant sewerage network - total project value – 8.2 MBGN

• Sewerage system of Pernik, total project value – 25.9 MBGN

• „Further construction of waste water network, pump station Roma residential district, replacement of water supply network in Roma residential district – town of Valchi dol. - 8,1 MBGN

• Construction of sewerage network relevant to the WWTP in Glavinitsa - total project value – 7.6 MBGN

Seventeen investment projects (within 12 grant contracts) were commissioned from programme’s launch till the end of 2011 in the following municipalities – Primorsko, Sopot, Beloslav, Blagoevgrad, Kazanlak, Hissar, Troyan, Burgas (Dolno Ezerovo), Gorna Banya Neighborhood (Sofia Municipality), Kavarna, Pernik and Glavinitsa.

In 2011 the construction of the following projects has started:

• Reconstruction and modernization of water supply and sewerage network in Strumsko, Gramada and Balarbashi residential districts, as well as improving the existing one in residential district IV in Blagoevgrad

• Investment projects for water supply network in Burgas – Meden Rudnik

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• Improvement and development of the water supply and waste water infrastructure on the territory of Veliko Tarnovo municipality

• Construction of 4 main sewerage collectors on the territory of Ovcha Kupel residential district – Sofia municipality – the construction of the 4th one has started.

• Rehabilitation and further development of the sewerage and water supply network in Yablanitsa. The construction of the network in IV residential district has started.

3.1.2 SIGNIFICANT PROBLEMS ENCOUNTERED AND MEASURES TAKEN TO OVERCOME THEM

With regard to the need of reform in the water sector, see 2.4. CHANGES IN THE CONTEXT OF THE OPE IMPLEMENTATION

See also 2.3 “Significant problems encountered and measures taken to overcome them”.

3.2. PRIORITY AXIS 2 “I MPROVEMENT AND DEVELOPMENT OF WASTE TREATMENT

INFRASTRUCTURE ”



Indicator 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

Result Indicators

Indicator 1:

Population served by integrated waste management systems

Achievement 0 0 0 0 0 0

Target (1) 0 0 0

1 983 264

3 967 000

Baseline 467 000

467 000

467 000

467 000

Output indicators

Indicator 2:

Constructed and completed integrated waste management systems (core indicator)


Target (1) 0 0 0 12 27

Baseline 5 (2) 5 (2) 5 (2) 5 (2)

1) In the OPE, target values of all indicators are defined for the years 2010 and 2013. (2) The baseline value refers to integrated waste management systems completed with the financial assistance from ISPA Programme. N/A – information is not available * During the reference period there was no physical advance achieved on the OPE indicators. Therefore, there is no relevant information to be supplied under this item.

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At 31 December 2011, under implementation within priority axis 2 are 17 contracts for 355.8 MBGN, including 12 contracts for technical assistance for preparation of investment projects and 5 contracts for establishment of regional waste management systems in Botevgrad, Vidin, Burgas, Sofia Municipality – Phase I, Pernik.

Sixteen contracts for technical assistance for preparation of investment projects were successfully completed in 2011. The grant amounts contracted for these projects total 6.8 MBGN.

The project proposal for the construction of waste MBT (mechanical and biological treatment) installations, part of the Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality Project, was submitted to EC for evaluation on November 4, 2011. The value of this project phase is about 200 MBGN. Detailed information is presented in Item 5. ERDF/Cohesion Fund Programmes: Major Projects.

Fourteen project proposals are in evaluation at the end of 2011– Malko Tarnovo, Gabrovo, Levski, Lukovit, Panagyurishte, Pleven, Samokov, Yambol, Biala (Ruse), Varna, Veliko Tarnovo, Dobrich, Razlog and Stara Zagora, totaling 375.5 MBGN in value.

Three contracts were cancelled over the year – Omurtag, Smolian, Saedinenie.

In accordance with the “Mechanism for development of the waste management infrastructure with the assistance of OP Environment 2007-2013” (“The Mechanism”), the scope and value of projects should be proven and justified in pre-investment studies. In the course of project preparation it was established that many projects exceed initial estimates. Data on project value based on the information taken from signed contracts or preliminary opinions are presented in the table below:

No. Region Procedure Grant - call Grant - contract 1. Botevgrad BG161PO005/09/2.10/07/14 10 974 414.37 14 489 450.40 2. Burgas BG161PO005/10/2.10/05/18 40 730 238.00 40 546 468.48 3. Vidin BG161PO005/10/2.10/04/17 19 427 991.00 19 427 990.99 4. Pernik BG161PO005/09/2.10/03/15 21 315 359.49 19 132 568.65* 5. Sofia BG161PO005/09/2.10/01/13 256 265 129.21 Phase І – 98 849 201.13

Phase ІІ –160 795 294.78**

Total: 259 614 495.91 6. Malko Tarnovo BG161PO005/10/2.10/05/18 15 646 640.00 7 425 976.58*** 7. Borovo/Biala 19 735 729.40*** 8. Varna 28 391 136.50*** 9. Veliko Tarnovo 59 643 129.84*** 10 Gabrovo 32 340 214.29*** 11 Dobrich 31 264 666.16*** 12. Kostenets/Samokov 11 175 966.44*** 13. Levski 33 542 265.37*** 14. Lukovit 15 727 591.72*** 15. Panagyurishte 17 526 749.80*** 16. Pleven 24 503 866.42*** 17. Razlog 11 896 342.16*** 18. Stara Zagora 49 429 247.25*** 19. Yambol

BG161PO005/10/2.10/07/22 239 340 689.00

18 888 417.44***

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TOTAL: 603 700 461.10 714 702 273.80 *- Signing of grant contract pending **- According to information from the form submitted to EC for Phase II of the Sofia Municipality project ***- According to budget data from the documents for preliminary opinion by MA of OPE. While an evaluation could lower some of these values, the grant amounts required exceed considerably the initial allocation.

Status of the other projects

The status of the 4 remaining regions out of the 23 regions envisaged for funding from OPE is presented in Table 2.

Table 3. Region according

to NWMP Indicative scope PIS

FA/ CBA

AF

Site ownership and change of

purpose

EIA/ IP

Note

Kocherinovo (Blagoevgrad and Dupnitsa)

Two RWMS – Blagoevgrad and Dupnitsa No No No No No

According to a decision taken at the meeting on 19 May 2011 at the Council of Ministers, Kocherinovo region will be split into two regions – Blagoevgrad and Dupnitsa. An investment letter of intent for construction of a facility through PPP has been submitted for Dupnitsa. Critical points: NWMP needs to be amended

Pazardzhik

Landfill – cell I/reloading station/center for bulky waste and storage of hazardous waste / composting facility and construction waste facility.

Yes Yes No No No

Terms of reference for EIA Report submitted to RIEW. Hydro-geological survey (HGS) is being prepared for inclusion in the EIA Report. Completed DSP. Critical points: problems with the ownership of part of the land; solution – May 2012 at the earliest.

Provadia Reloading stations (JASPERS) No No No No No

Options assessment report with preferred option recommendations prepared by the JASPERS consultant. Critical points: municipalities need to be more active

Svoge Reloading station No N.A. No Yes No The site was selected on the basis of studying terrains for two sites – main and alternative.

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The value of these 4 projects as specified in the Mechanism is about 89 MBGN. The preliminary consultations show that the serious delay in their preparation poses a significant risk that they will not reach the level of maturity necessary for application. In case the resources for the financing of these projects are not redirected to other measures and activities, they may well remain unabsorbed.

Reallocation of the resources

The Mechanism provides an option to reallocate the available resource to other necessary measures in case of identified delay or savings on priority projects, with a view to ensuring absorption of all funds and financing activities for compliance with the legislation. In that light, the resources remaining available under priority axis 2 of OPE, as calculated in the analysis (at November 2011), can be redirected to finance:

• Projects for reclamation of the old municipal landfills, including projects envisaged for funding under DCM No. 209/20 August 2009 on financing the establishment of the regional municipal waste management systems, the regional facilities for pre-treatment of municipal waste and the closure of municipal landfills (DCM No. 209/2009). This will support compliance with Directive 1999/31/EC at times of financial crisis when national funding is scarce;

• Project financed from the Technical Assistance under OPE – for completion of RWMS (additional cells, pre-treatment facilities, composting facilities) – towards compliance with the Waste Framework Directive – for example RWMS for Omurtag, Haskovo, Razgrad regions, among others.

To date, out of total 61 project proposals for closure (reclamation) at a value of BGN 64 869 931.10, seven (7) municipal landfills totaling BGN 1 715 179.90 in value have been closed (reclaimed) with financing from the state budget on the basis of decisions of the respective RIEW. Eleven other reclamation projects totaling BGN 15 844 609.97 in value are pending approval in 2012. Further 43 projects at a total value of a little more than 47 MBGN are in an approval procedure, other projects are also being prepared by the municipalities.

In order to finance the above measures, the Mechanism for development of the waste management infrastructure with the assistance of OP Environment 2007-2013 had to be amended to include as direct beneficiaries of these projects:

• For closure – the municipalities on whose territory the landfills are located;

• For RWMS – the municipalities in the respective region;

The following amendments were made to the Mechanism on the basis of the analysis:

• Award of grants to projects beyond the 23 RWMS developed under OPE TA, for completion of the regional systems under NWMP;

• Financing the closure (reclamation) of old municipal landfills from OPE

The amendments were approved at the Eleventh Meeting of the OPE Monitoring Committee held on December 6, 2011.

In the light of a need to improve the implementation of the waste management legislation, project “Transposing in the national legislation the requirements of Directive 2008/98/EC on waste and

41

repealing certain Directives” under priority axis 4 “Technical Assistance” of OPE was completed in August 2011. Project “Technical assistance in the field of waste management” is being implemented. The following strategic documents are to be developed:

• “Methodology for determining the morphological composition of municipal waste” to be used by the local authorities – the municipalities, in strategic decision-making on the selection of a technology or on determining the capacity of waste treatment facilities.

• “Studying the opportunities to implement deposit and return systems for certain types of packaging and packaging waste in Bulgaria ”

• “Preparing written opinions for the “Geotechnical and foundations engineering” part of conceptual or detailed designs of project proposals for grants under priority axis 2 of Environment OP 2007 – 2013.

• “Development of bio-waste management regulations and establishment of a system and a National Organization to ensure the quality of the compost”.

The project implementation results will contribute to the harmonization of Bulgarian waste management legislation with EU requirements.

The implementation of the above measures will help prevent and minimize possible preliminary requirements for the next programming period.


See also 2.3 Significant problems encountered and measures taken to overcome them.

3.3. PRIORITY AXIS 3 “PRESERVATION AND RESTORATION OF BIODIVERSITY ”

3.3.1 IMPLEMENTATION OF TARGETS AND ANALYSIS OF THE PROGRESS


Индикатор 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

Result indicators

Indicator 1:

Percentage of NATURA 2000 (protected zones and protected areas) to be mapped/managed


Target (1) 0 0 0 2.6 8

Baseline 0 0 0 0

Output indicators

Indicator 2:

Number of mapped protected areas and zones of NATURA 2000 network


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Target (1) 0 0 0 14 44

Baseline 0 0 0 0

Indicator 3:

Number of elaborated management plans for protected areas and zones of NATURA 2000 network


Target (1) 0 0 0 14 44

Baseline 0 0 0 0

(1) In the OPE, target values of all indicators are defined for the years 2010 and 2013

* 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.


Fifty-two projects at an aggregate value of BGN 80 037 581.23 are being implemented under priority axis 3.

Achievement on the procedures:

• Procedure BG161PO005/08/3.0/01/05 “Preservation and restoration of the biodiversity in Bulgaria “- under implementation are 4 orders and 13 contracts totaling BGN 15 071 222.40 in value.

• Procedure BG161PO005/09/3.1/01/08 “Development of NATURA 2000 network” – three projects at a value of BGN 27 360 707. 60 are being implemented.

• Procedure BG161PO005/09/3.2/01/09 “Update of the Rila National Park Management Plan” – the project was cancelled on 30.12.2011 due to delayed activities and public procurement procedures and a risk that they will not be completed within the project time limits. The update of the Rila National Park Management Plan will be included in the projects prepared by Rila NP under procedure BG161PO005/11/3/3.2/05/27 “Implementation of activities for planning and management of nature parks”.

• Procedure BG161PO005/09/3.2/02/10 “Development of Bulgarka Nature Park Management Plan” – a project worth BGN 1 975 462.00 is being implemented with Bulgarka Nature Park as beneficiary.

• Procedure BG161PO005/09/3.2/03/11 “Development of Belasitsa Nature Park Management Plan” – a project worth BGN 1 161 974.68 is under implementation; beneficiary – Belasitsa Nature Park.

• Procedure BG161PO005/09/3.2/04/12 “Update of the Central Balkan National Park Management Plan” – a project worth BGN 2 362 434.55 is being implanted; beneficiary – Central Balkan National Park.

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• Procedure BG161PO005/10/3.0/2/20 “Activities for preservation and restoration of the biodiversity in Bulgaria” – 23 projects totaling BGN 20 806 254.11 in value are being implemented. The beneficiaries are 9 municipalities, 6 directorates of nature parks, 4 NGOs, 3 RIEWs and 1 forestry directorate.

• Procedure BG161PO005/11/3.1/02/23 “Development of management plans for special protection areas for birds not overlapping with special protection areas for habitats” – 5 projects totaling BGN 1 412 733.89 in value are being implemented.

• Procedure BG161PO005/11/3.0/03/24 “Terrain Studies of Species Distribution/ Evaluation of Species and Habitat Status for the Territory of the Whole Country - Phase I ” – 1 project worth BGN 9 886 792.00 is being implemented with beneficiary Executive agency for environment.

In evaluation are projects under the following procedures:

• 18 project under procedure BG161PO005/11/3/3.2/05/26 “Implementation of activities for planning and management of parks and reserves”. Total amount of grant for the procedure - 90.4 MBGN. Eligible beneficiaries are national parks, managed reserves and reserves on the territory of Bulgaria.

• 11 under procedure BG161PO005/11/3/3.2/06/27 “Implementation of activities for planning and management of nature parks”. Total amount of grant for the procedure – 34.6 MBGN. Eligible beneficiaries are nature parks on the territory of Bulgaria.


As regards Priority Axis 3, slowed-down mapping and assessment of the favourable conservation status delays important subsequent projects for funding from OPE such as for development and approval of management plans for protected zones of NATURA 2000. Measures are taken to improve the beneficiaries’ capacity to prepare and manage projects, by providing specialized trainings.

With a view to avoiding problems with the reporting and verification of expenditure incurred for project management and implementation remunerations under priority axis 3 of OPE, following the approval of amendments to DCM No. 55/2007 which regulate facilitated assignment of tasks to individuals whose CVs have been evaluated, a sample form of an Order designating a management team for beneficiaries who are administrative structures was published in the OPE website. To facilitate the beneficiaries, instructions and a list of documents required for the reporting of expenditure relating to the work of volunteers were published.

In order to shorten the period for examination of requests for funds from 17.08.2010, the entered into force Decree 179, which regulates that "The Managing Authority / Intermediate Body verifies expenditure, considering all the reports and documents representing the payment in a 40-day period form the reception date, and notifies the beneficiary.”

Previous experience in managing projects under Axis 3 shows that 10% limit on administrative costs for projects with smaller value is rather restrictive, the more that this restriction is legally established only for infrastructure projects. Therefore, within the last procedures announced, a new approach has been adopted – the percentage limit to be 20% od the total eligible costs and it will be applied in future procedures under priority axis 3.

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Detection and prevention of double funding is also a big 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 funding, 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 of MA/IB are involved in horizontal mechanisms that have inter alia this goal. For example, they sit on working and expert groups like the Expert Group for Transparency within State Fund Agriculture – Paying Agency. MA coordinates projects approved under other grant instruments like the Norwegian Programme.

• In order to strengthen the capacity of potential beneficiaries in Biodiversity sector, MA of OPE conducted information days for Procedure BG161PO005/11/3.1/02/23 “Development of management plans for special protection areas for birds not overlapping with special protection areas for habitats”, held in the period 04-05 April 2011;

• In the period 24 – 26 October 2011 the MA and IB provided a training on the upcoming procedures for Implementation of activities for planning and management of national parks and reserves and Implementation of activities for planning and management of nature parks;

See also 2.3 “Significant problems encountered and measures taken to overcome them”.

3.4. PRIORITY AXIS 4 “T ECHNICAL ASSISTANCE”


Information about the physical and financial progress of the priority

Indicators for this priority axis are not defined in the OPE. Indicators are project-specific and depend on the activities included in the project. Therefore, there is no relevant information to be supplied.


The objective of Priority Axis 4 “Technical Assistance” is to ensure the efficient management of the OP and to strengthen the capacity for absorption of programme’s funds in the structures involved in programme’s implementation. It supports the management, implementation, monitoring, control and evaluation of the OP and the implementation of publicity and visibility measures, as well as studies and exchange of experience. This priority axis supports the building and enhancement of specific capacity for preparation, implementation, management and monitoring of CF-funded projects in both the management structures and the beneficiaries of the OP. Allocations to Priority Axis 4 account for approximately 2.5% of programme’s total budget.

To date (March 27, 2012) 71 projects at an aggregate value of BGN 46419958.51 are contracted under this priority axis. Of these, 31 are under implementation, 37 are completed and 3 were cancelled.

Achievement on Priority Axis 4 “Technical Assistance” is closest to forecasts. The CPE, EUEF and IA directorates are responsible for the preparation and management of projects – a fact that is highly contributive of better absorption. Allocations under priority Axis 4 are used to address many of the logistics difficulties encountered by the directorates responsible for the management of OPE and to meet capacity enhancement requirements. A step forward in that respect was the approval of DCM 203/2010 which made possible the attracting of specific expertise as part of the

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team working on OPE. The new staff is recruited to provide expert assistance for the preparation of project proposals of beneficiaries applying under direct award procedures within OPE.

With a view to better absorption of the technical assistance allocations, a decision to prepare a detailed plan for the use of these resources which elaborates the general guidelines set out in the strategic plan was taken at the end of 2010. This detailed plan was integrated in the Strategic Plan for Technical Assistance which was amended through a written procedure conducted between 2 and 8 November 2011.

Towards better absorption under priority axis 4, the opportunity to make payments to contractors of projects financed under this priority axis directly from an off-budget account was studied with the aim to facilitate the process and lift the burden of processing documents for payments under the priority axis from the directorates in the central office of MoEW. The analysis showed that this would require amendments to the MF instructions laying down the rules of the accounting process. The requirement to coordinate the procedures under the Public Procurement Law (PPL) with the legal department of MoEW was eliminated, again with the aim to facilitate and step up the procedures. This was made possible with the latest amendments to the Structural Regulations of MoEW, effective March 1, 2011.

The preparation and organization of public procurement procedures for projects under priority axis 4 was stepped up. Reporting of progress on projects was improved.

The following project proposals corresponding to the activities in the Strategic Plan for Technical Assistance 2007 -2013 were developed and approved in 2011:

1. A project for delivery of computer equipment and peripheral devices (BGN 479 730) was prepared and approved in order to improve the quality of work of the experts engaged in the management of OPE;

2. With a view to improving the administrative capacity, additional payment was secured for the employees involved in the preparation, coordination, implementation, monitoring, evaluation, financial management, control, audit, information and publicity of Environment OP 2007 – 2013 and for the staff appointed to the position of “assistant for the management of European projects and programmes” in accordance with DCM No. 203/13.09.2011 (BGN 9 389 162,52);

3. Funds were made available to the Internal Audit Directorate of MoEW for secondments for audits and on-site checks at the beneficiaries of projects financed from OPE 2007 – 2013 (BGN 118 000)

4. A project for selection of external experts to provide ex-ante control in accordance with Article 20a (2) 2 and Article 4 of PPL was approved (BGN 1 178 400)

5. Experts from the National Nature Protection Service Directorate of MoEW were attracted in order to step up the evaluation of project proposals under priority axis 3 and their pay was secured in accordance with Article 17 (4) and (5) of DCM No. 249/17.10. 2007 (BGN 32 000)

6. A project for implementation of the activities on the OPE Communication Plan (BGN 307 390) was designed and approved

7. A project to secure the pay to assistants for the management of European projects and programmes was developed in order to enhance the administrative capacity of CPED and EUEFD (BGN 16 087 753.50)

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8. Developed and approved was a project for the organization of information and publicity events and for production of publicity and information materials on Environment OP 2007 – 2013, as well as for the organization of the national campaign “Green Bulgaria” (BGN 4 692 388)

9. Securing the pay to members of working groups initiated by the CPED in relation to the management of Environment OP 2007-201 (BGN 852 500)

10. Activities have been planned to ensure the necessary support and publicity for the promotion of OP (BGN 353 178)

11. Funds have been earmarked for technical assistance in the field of waste management (BGN 1 208 988)

12. A project for capacity building in the units engaged in the management and implementation of the OP was designed and approved in preparation for the next programming period (2014-2020) (BGN 8 816 000)

The following projects were completed in 2011:

1. Verifications and on-site checks in relation to projects approved for funding under priority axis 4 “Technical Assistance” with beneficiaries – CPE, EUEF and IA directorates of the Ministry of Environment and Water (verified: BGN 223 962.68)

2. Organization of trainings for beneficiaries of Environment OP 2007- 2013 (verified: BGN 230 539.60)

3. Organization of a visit of experts from the Environmental Investment Center (Tallinn, Estonia), for exchange of experience (verified: BGN 3 482.41)

4. Enhancing the capacity of the IA Directorate through trainings in Bulgaria and abroad – 2010 (verified: BGN 13 011.46)

5. Promoting Environment OP 2007-2013 in the electronic media and organization of a Major Annual Event for 2010 (verified: BGN 619 821.52)

6. Securing additional pay, including social security contributions, to employees engaged in the preparation, coordination, management, implementation, monitoring, evaluation, financial management, control, information and publicity of Environment OP 2007 – 2013, including for the staff appointed to the position of assistant for the management of European projects and programmes in accordance with DCM No. 203 (verified: BGN 617 468.83)

7. Organization of an official working visits of OPE experts to Tallinn, Estonia for exchange of experience (BGN 9 332.46)

Under implementation are also projects approved in the period 2009 – 2010:

1. A project for audits for the needs of Environment OP 2007-2013 (BGN 720 000)

2. A project for workshops, courses and working meetings to enhance the administrative capacity of CPED (BGN 699 717.08)

3. A project for organization of the meetings of the Monitoring Committee of Environment OP 2007 - 2013 for 2009, 2010 up to May/June 2011.

4. A project for involvement of experts in workshops, courses and working meetings to enhance the administrative capacity of the EU Environment Funds Directorate (BGN 1 275 424.52)

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5. A project for evaluation of the efficiency of completed procedures for selection of project proposals under priority axes 1, 2 and 3 of Environment OP 2007-2013 (BGN 132 000)

6. A project for undertaking 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 (BGN 285 441)

7. A project for selection of a consultant to prepare standard forms of public procurement documents in accordance with PPL/OASPC and instructions for proper use, implementation and completion thereof (BGN 78 000)

8. A project to make resources available to the EUEF Directorate of MoEW for secondments for on-site checks under OPE 2007-2013 (BGN 274 183.60)

9. A project for selection of a consultant to provide ex-ante and ex-post control of public procurement procedures announced and/or conducted by OPE beneficiaries (BGN 348 000).

10. A project for transposing in the national legislation the requirements of Directive 2008/98/EC on waste and repealing certain Directives (BGN 120 000)

11. A project for implementation of awareness raising activities for the target groups of Environment OP 2007-2013 (BGN 221 880)

12. A project for involvement of external experts from the list under Article 19 (2) 8 of PPL in the proposal evaluation committees within public procurement procedures (BGN 105 000)

13. Pay in accordance with Article 17 (4) and (5) of DCM No. 249/17 October 2007 was secured to the experts in the Preventive Activities, Waste Management and Water Management directorates of MoEW engaged in the evaluation of project proposals under priority axes 1 and 2 of OPE (BGN 50 400)

14. A project to make resources available to CPED of MoEW for secondments for planned and ad-hoc on-site checks for the administration of irregularities under OPE 2007-2013 (BGN 65 000)

15. A project for workshop training activities, courses, working meetings and discussions to enhance the administrative capacity of beneficiaries who are second-level spending units at MoEW for the preparation and implementation of OPE projects and projects under different sector policies related to the overall management of the operational programme. (BGN 518 000)

16. A project for selection of independent valuators of OPE-funded projects in support of the successful conclusion of contracts (BGN 1 911 420)

17. A project for building of an information environment for management of OPE information flows including a real-time reports and references option (BGN 100 000).


The complex and time-consuming procedures under the Public Procurement Act remain a major problem affecting the implementation of projects and absorption of funds under priority axis 4 “Technical Assistance”. Long time periods and the appeals before various instances delay for months the start of activities under the approved projects.

The process of announcement and conducting of procurement procedures and subsequent awarding of implementation (through a contract with a contractor) in the context of continuous changes and amendments to the legislation in the field, as well as the in-house coordination

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process within the MoEW administration, additionally burdens the practical implementation of project activities. In many cases the project completion timeframe proves tight because of delayed procurement procedures and has to be extended which requires a new Decision of the Head of MA and a new Order of the Minister of Environment and Water.

In order to facilitate the implementation of projects within Priority Axis 4, MA has elaborated internal procedures clarifying and simplifying the process. A strategic plan for the use of funds has been prepared with a view to improving panning, including of procurement procedures.

Narrow specialists in the fields of WSS (networks and wastewater treatment), law, waste management and finance were appointed to the positions of assistant for the management of European projects and programmes in accordance with DCM No. 203/13.09.2011.

Moreover, in the past year the CPED employees took part in more than 200 trainings aiming to strengthen the administrative capacity in the department. (See also 2.3)

4. ESF PROGRAMMES: COHERENCE AND CONCENTRATION

Not applicable.

5. ERDF/CF PROGRAMMES: MAJOR PROJECTS (IF APPLICAB LE)

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 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.

Achievement by activity:

1. Activity 1 – Project preparation – completed.

2. Activity 2 – Project management – A contract for technical assistance for PMU was signed on 04.07.2011 with the successful candidate Alliance Project-Consulting-Vratsa Ltd. comprising three companies: Sofia Consulting Group, June Project Ltd. and Waterengineering Ltd.

3. Activity 3 – Project information and publicity – The procedure was appealed before CPC and SAC by the candidate ranked second; both instances refused the complaint. A contract with the successful candidate Consortium AIP – Agency for Information and Publicity comprising two companies: Mihaylov TV Ltd and Studio R Ltd. was signed on 08.12.2011;

4. Activity 4 – Financial Audit – a contract was signed with the successful candidate Global Audit Services Ltd. on 29.08.2011;

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5. Activity 5 – Construction supervision and other services such as preparation of tender dossiers, FIDIC contracts, etc. – A contract for construction management and construction supervision of construction contracts under FIDIC was signed with the successful candidate Consulgal BG Partners Ltd. – a consortium of 3 companies (Consulgal-Consultores de Engenharia e Gestao, SA – Portugal, Expressengineering Ltd. and BoilKonsult Ltd.) on 07.06.2011.

6. Activity 6 – Purchase of equipment:

7. Activity 7 – Rehabilitation and reconstruction of water supply pipeline – Research, design and exercise of field supervision of water supply main from Srechenska Bara Dam to Vratsa. A contract with the successful candidate RECCO Engineering Ltd. was signed on 30.08.2011

8. Activity 8 – Reconstruction of the water supply network – A public procurement procedure was conducted but the decision of Vratsa Municipality for selection of a contractor (Consortium Vratsa Association DZZD /Company under the Law on Obligations and Contracts/) was appealed in CPC and SAC. With a decision of 20.02.2012 SAC repealed the selection as unlawful. The procurement procedure was re-launched in March 2012.

9. Activity 9 – Extension of the sewage network – A public procurement procedure was conducted but the decision of Vratsa Municipality for selection of a contractor (Consortium DZZD Vratsa Association) was appealed in CPC and SAC. With a decision of 20.02.2012 SAC repealed the selection as unlawful. The procurement procedure was re-launched in March 2012.

10. Activity 10 – Reconstruction of the sewage network – A public procurement procedure was conducted but decision of Vratsa Municipality for selection of a contractor (Consortium DZZD Vratsa Association) was appealed in CPC and SAC. With a decision of 20.02.2012 SAC repealed the selection as unlawful. The procurement procedure was re-launched in March 2012.

11. Activity 11 – Reconstruction of WWTP: A procurement procedure under PPL was held but the decision of Vratsa Municipality for selection of a contractor (Construction and Entrepreneurship Holding) was appealed in CPC and is pending appeal in SAC. The sitting of SAC has already been scheduled.

Timetable of activities

Activities

Start date Completion date

1. Project preparation – activities for elaboration of documents for the project proposal – tender dossiers, research, design, working meetings, etc.

July 2008 September 2015

2. Project management May 2011 September 2015

3. Project information and publicity July 2011 August 2015

4. Financial audit August 2011 September 2015

5. Construction supervision and other services such as preparation of tender dossiers, FIDIC contracts, etc.

April 2011 September 2015

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6. Purchase of equipment June 2012 March 2013

7. Rehabilitation and reconstruction of water supply pipeline

July 2012 September 2014

8. Reconstruction of the water supply network August 2012 August 2014

9. Extension of the sewage network September 2011 August 2014

9.1. Extension of the sewage network – Phase I September 2011 September 2013

9.2. Extension of the sewage network – Phase II August 2012 August 2014

10. Reconstruction of the sewage network September 2011 August 2014

10.1. Reconstruction of the sewage network – Phase I September 2011 September 2013

10.2. Reconstruction of the sewage network – Phase II

August 2012 August 2014

11. Reconstruction of WWTP June 2011 June 2013

Financial parameters Project funding sources (BGN)

Total value of the investment

Community contribution (Cohesion Fund)

National co-financing (state budget)

Beneficiary co-financing – Vratsa Municipality

Securing beneficiary’s contribution from an external loan extended by EIB

136 373 288 98 818 894 24 704 722 12 849 672 12 849 672

100% 72.5% 18% 9.5% 9.5%

Financial implementation of the project:

Advance payment to beneficiary – BGN 24 704 723.20 (20% of the grant)

Interim payments to beneficiary – BGN 194 682.36 (0.16% of the grant)

1.2. Gabrovo Integrated Water Cycle Project

On 8 December 2008, the Gabrovo Integrated Water Cycle Project was sent to the EC via the SCF system. A letter from EC was received on 27 February 2009, stating that the Gabrovo Municipality 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 2009 with a decision of the European Commission.

The grant contract between MoEW and Gabrovo Municipality was signed on 23 February 2010. The grant amount is BGN 117 447 251.19 and the project is scheduled for completion on 23.07.2015

The following activities are implemented under Grant Contract No. 58111-77-268 for Gabrovo Integrated Water Cycle Project:

Activity 1: Preparatory activities to secure the project implementation:

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Activity 1.1: Preparation of technical specifications for technical assistance for development of investment projects and tender documents pursuant to PPL – completed before the signing of the grant contract.

Activity 1.2: Preparation of tender dossier for public procurement procedure for reconstruction of DWTP – completed.

Activity 1.3: Consolidation of project documents - completed before the signing of the grant contract.

Activity 1.4: External services – payments for external services were made over the reporting period for: development of the anti-fire part of the prepared detailed designs for the WSS network, copying services, notary fees, geodesic services, consulting services for the development of technical analyses and documents for drinking water treatment station (DWTP), other external services.

Activity 1.5: Coordination of projects and permits – a number of coordination procedures were carried out over the reporting period in relation to the prepared detailed designs for the WSS network – for phases 1, 2 and 3.

Activity 2: Activities under the investment programme: reconstruction of DWTP, repair of 4 and construction of 1 pump station, rehabilitation and improvement of the water supply system, extension of the sewage system, rehabilitation of the sewage system, reconstruction of WWTP, production equipment for WWTP, grouped as follows:

Activity 2.1: Reconstruction of DWTP – A call for project proposals for selection of a contractor was opened on 15.12.2010. The documents for participation in a reopened procurement procedure for “Reconstruction of Gabrovo drinking water treatment station within project 58111-77-268 Gabrovo Integrated Water Cycle Project, Environment OP 2007 - 2013” have passed the ex-ante control at OPE IB. The call was reopened on 21.12.2011. The committee on opening of project proposals submitted in response of the call, appointed by the Mayor of Gabrovo Municipality, held a meeting on 21.02.2012.

Activity 2.2: Rehabilitation of water supply network and rehabilitation and extension of sewage network 1/3 – over the review period, the designers have rectified all errors notified by the construction supervision and have finalized all coordination procedures for the investment project for phase 1. A comprehensive compliance assessment report has been prepared by the contractor providing construction supervision. A call for proposals for selection of a contractor for “Rehabilitation of the water supply network and rehabilitation/extension of the sewage network of Gabrovo – Phase 1 - 58111-77-268 Gabrovo Integrated Water Cycle Project, Environment OP 2007 – 2013” was opened on February 25, 2012. The deadline for submission of project proposals expired on March 5 2012.

Activity 2.3: Rehabilitation of the water supply/sewage network 2/3 – the designers have rectified the better part of the errors notified by the construction supervision; most of the coordination procedures for phase 2 of the investment project have been completed. A call for proposals for selection of a contractor for “Rehabilitation of the water supply network and rehabilitation/extension of the sewage network of Gabrovo – Phase 2 - 58111-77-268 Gabrovo Integrated Water Cycle Project, Environment OP 2007 – 2013” was opened on February 21, 2012. The deadline for submission of project proposals expired on April 2, 2012.

Activity 2.4: Rehabilitation of the water supply/sewage network 3/3 - the designers have rectified the better part of the errors notified by the construction supervision; most of the coordination

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procedures for phase 3 of the investment project have been completed. “Rehabilitation of the water supply network and rehabilitation/extension of the sewage network of Gabrovo – Phase 3 - 58111-77-268 Gabrovo Integrated Water Cycle Project, Environment OP 2007 – 2013”

Activity 2.5: Field supervision of construction works for the linear portion – WSS network – completed for the organization of procurement procedure and signing of contract.

Activity 2.6: Reconstruction of WWTP – MA of OPE approved the initiated modification of the process flow sheet for reconstruction of WWTP – anaerobic treatment of sludge in a methane tank. The call for proposals was opened on 07.07.2011. A contractor was selected with Decision No. 1/03.01.2012 of the Mayor of Gabrovo Municipality.

Activity 3: Organization and management activities

Activity 3.1: Support to PMU

Activity 3.1.1: Technical assistance to Project Management Unit of Gabrovo Integrated Water Cycle Project – Call for proposals was opened in accordance with PPL on 04.01.2011. Following rework of the documents for participation, the procedure was reopened on 04.07.2011. A contractor was selected with Decision No. 61/14.10.11.

Activity 3.1.2: Project Management Unit (PMU) - ongoing activity.

Activity 3.2: Technical control of design works and construction supervision of contracts using FIDIC conditions of contract – Yellow Book and Red Book – Decision No. 67/08.12.2010 for appointment of a contractor was appealed in CPC. With decision No. 60/25.01.2011, CPC refused the complaints. Contract 133 IPVC/2011 was signed with the selected contractor KIG – PURI OOD on 23. 03.2011. To date, the contractor providing construction supervision has prepared a comprehensive compliance assessment report. Most of the coordination procedures for phases 2 and 3 of the investment project have been completed.

Activity 3.3: Information and publicity measures – ongoing activity implemented by the beneficiary and the contractor under contract 777-УР-10/25.10.2010 – Strategma Agency OOD. Kick-off conference for public presentation of the project was organized and held in 2011. Ongoing media monitoring was carried out.

Activity 3.4: Project audit – The procurement procedure was opened with Decision No. 20/11.04.2011 of the Mayor of Gabrovo Municipality. The company Global Advisers – Blaga Sabeva was appointed contractor with Decision No. 40 /14.07.2011 of the Mayor of Gabrovo Municipality.

Timetable of activities

Activities

Start date Completion date

Preparatory activities to secure the project implementation

March 2008 Ongoing

Preparation of technical specifications for technical assistance for development of investment projects and tender documents pursuant to PPL

March 2008 March 2008

Preparation of tender dossier for public procurement June 2008 March 2009

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procedure for reconstruction of DWTP

Consolidation of project documents May 2008 May 2008

External services Ongoing Ongoing

Coordination of projects and permits Ongoing Ongoing

Activities under the investment program: reconstruction of DWTP, repair of 4 and construction of 1 pump station, rehabilitation and improvement of the water supply system, extension of the sewage system, rehabilitation of the sewage system, reconstruction of WWTP, production equipment for WWTP, grouped as follows:

September 2011 April 2014

Reconstruction DWTP (and design work) October 2011 April 2014

Rehabilitation of water supply network and rehabilitation and extension of sewage network 1/3

October 2011 April 2014

Rehabilitation of water supply/sewage network 2/3 March 2012 March 2014

Rehabilitation of water supply/sewage network 3/3 March 2012 March 2014

Field supervision of construction works for the linear portion – WSS network

October 2011 April 2014

Reconstruction of WWTP September 2011 March 2014

Organization and management activities October 2010 July 2015

Support to PMU August 2011 July 2015

Technical control of design works and construction supervision of contracts using FIDIC conditions of contract – Yellow Book and Red Book – Gabrovo Integrated Water Cycle Project

March 2011 June 2015

Information and publicity measures October 2010 July 2015

Project audit July 2011 July 2015

Financial parameters

Project funding sources (BGN)




Beneficiary co-financing – Gabrovo Municipality


123 539 184 93 957 801 23 489 450 6 091 933 6 091 933

100% 76% 19% 5% 5%

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Advance payment to beneficiary – BGN 23 489 450.24 (20% of the grant)

Interim payments to beneficiary – BGN 425 939.52 (0.36% of the grant)

2. Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality

On 16 December 2009, Sofia Municipality was invited to submit a project proposal for the construction of municipal waste management infrastructure in the capital city. The indicative OPE allocation to 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 balance up to this amount, at more than 103 MBGN will be procured by Sofia Municipality with a loan from the European Investment Bank.

On 21 April 2010, project Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality was sent to the European Commission via the SFC system. A letter from EC was received on 23 April 2010, stating that the Sofia Municipality project was registered with number CCI2008BG161PR001 and the conducted review established that it met the requirements of Art. 40 of Regulation 1083/2006/EC and was eligible for further examination.

Within the evaluation process, the project was split into two phases.

Phase I was approved on July 1, 2011; the contract between MoEW and Sofia Municipality was signed on July 27, 2011. The grant allocated to this phase amounts to BGN 98 849 201.13.

On 2 November 2011 Phase II of the project was sent to EC via the SCF system. A letter from EC was received on November 23, 2011, stating that the Sofia Municipality Project was registered with number CCI2008BG161PR007 and the conducted review established that it met the requirements of Art. 40 of Regulation No. 1083/2006/EC and was eligible for further examination.

Because of its significance, this project has been given a priority status in the new National Waste Management Programme 2009 – 2013.

Implementation progress – Phase 1 in 2011:

1. A build contract was signed with Geotechmin – Unieco Association on 26.08.2011, with duration of 14 months. Total contract value is BGN 25 167 088.87 inclusive of VAT. Subject of the contract: construction of cell I and cell II of the landfill with a total capacity of 905 000 m3. The construction site of the landfill was opened on 29.08.2011 with a signed Protocol. The following progress was achieved on construction works from construction site opening till the end of 2011:

1.1. Reception area – humus layer excavated and deposited; excavation works for the foundations of the administrative building, the workshop and the kiosk switchgear completed, strip foundations completed up to level 0,00, backfilling and concrete overlay completed at the same level. Implementation of formwork erection, reinforcing and concrete works started above level 0,00 for the two buildings. Installation of kiosk switchgear started in the reception area;

1.2. Waste water treatment station – the works on two buildings of the treatment station – one with sieve, desanding device and pumping station and a technological building, are completed at level 0,00. Installation of kiosk switchgear on the concrete ground and a tower crane (an element of temporary construction works) started;

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1.3. Landfill cells – the entire humus layer and the remaining soil layer down to excavation bottom level of cells 1 and 2 excavated and deposited. Underground water drainage works completed. Construction works continue on the wire mesh retaining wall and the dykes between the cells;

1.4. Engineering networks and roads – The humus layer removed from service road No. 1, mass excavation works carried out and backfilling and gravel consolidation started. Advance payment at BGN 3 431 875.75 made.

2. Construction supervision contract signed with IGIP-CEG-ICEPE-HIS /ICIH/ Association on 26.08.2011. Advance payment at BGN 801 010.22 inclusive of VAT made.

3. Open procurement procedure for the award of contract for “Building design and construction of biological treatment plant “Han Bogrov”" was announced on 21.09.2011. On 06.12.2011, the commission opened the 5 project proposals submitted. Following the evaluation for administrative compliance, all candidates who submitted project proposals were admitted to examination and evaluation of the technical proposals. After the examination of the technical proposals the commission admitted two candidates to evaluation of the price proposals. The price proposals were opened on 08.02.2012. The commission completed its work on 13.02.2012.

4. Project audit: Procurement procedure for “Audit of the Project “Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality” was announced on 25.11.2011. The nine project proposals submitted were opened on 09.01.2012. The commission is proceeding with the examination, evaluation and ranking of the candidates in the open procedure.

5. Information and publicity: Tender documents prepared for a procurement procedure for “Implementation of information and publicity mesures within Project No. DIR-592113-1-9 “Integrated System of Municipal Waste Treatment Facilities for Sofia Municipality””, involving tasks grouped in three separate positions:

• Implementation of information and publicity measures;

• Green policy: Communication and education campaigns for young people;

• Green policy: Campaigns to promote separate collection, recycling, composting and protection of the urban environment.

6. Pilot project to improve separate collection of waste on the territory of Sofia Municipality: Tender documents prepared for procurement procedure for “Delivery of technical equipment: transport vehicles and waste containers for implementation of Pilot project for separate collection of packaging waste at source in two out of the 24 districts of Sofia Municipality – Ovcha kupel and Kremikovci”. The pilot project will cover a population of about 72 939 thousand people in the two districts. The share of packaging waste in both districts is about 50% of the total waste generated in these regions. The project will result in 26% of packaging waste in Ovcha Kupel and 22% in Kremikovtsi collected at source in 2016. The project envisages purchase of containers for separate collection and facilities for transportation of waste. The collection of waste will be organized through a system of 1100 l and 120 l containers and plastic bags. Total pilot project value is EUR 1 288 413.00 евро for purchase of equipment and containers. Envisaged are also campaigns to promote separate collection and active involvement of the population in this activity. On 26 March 2012, Sofia Municipality announced a call for proposals for selection of a contractor for “Delivery of technical equipment: transport vehicles and waste containers for implementation of Pilot project for separate collection of packaging waste at source in two out of the 24 districts of Sofia Municipality – Ovcha Kupel and Kremikovtsi”. The deadline for submission of project proposals is May 3, 2012.

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7. All coordination procedures for the project are completed. The necessary building permits and EIA decision have been issued. Integrated permit is pending issuance.

8. Road, water and sewer infrastructure required for the operation of the facilities:

10.1. Service (connection) road to Sadinata site – construction completed.

10.2. Drinking and industrial water supply of Sadinata and Han Bogrov sites – completed for Sadinata site; for Han Bogrov site – to be awarded to Sofiyska Voda AD.

10.3. Sewage collectors for surface and treated waste water – construction completed.

10.4. Displacement of 3 overhead high-voltage power lines passing through Sadinata site – completed.

10.5. 3 drilling wells – construction completed

10.6. Power supply of sites – for Sadinata site completed in October 2011, for Han Bogrov site – to be completed by mid-2012.

In connection with the implementation of Phase II, on 08.02.2012 Sofia Municipality opened a call for proposals for “Design and construction of a mechanical and biological treatment (MBT) plant with RDF production”. The deadline for submission of project proposals was March 30, 2012. Project proposals were opened on April 2, 2012.

Start date (А) Completion date (В)

1. Feasibility study 12/07/2007 31/08/2009

2. Cost-benefit analysis (including financial analysis) 24/10/2008 16/02/2009

3. Environmental impact assessment: 17/03/2008 15/12/2008

4. Environmental assessment:

4.1. Detailed structural plan (DSP) – Plan for regulation and construction for defining the terrain of Han Bogrov site

12/03/2007 15/01/2008

4.2. Detailed structural plan (DSP) – Plan for regulation and construction for defining the terrain of Sadinata site for construction of facilities for non-hazardous waste treatment

02/07/2008 20/10/2008

5. Evaluation of the compliance with NATURA 2000 scope and objectives for preservation of protected areas

17/03/2008 15/12/2008

6. IPPC permit 04/08/2009 30/04/2012

7. Permit according to the Water Act 10/02/2009 01/09/2010

8. Design (conceptual designs):

8.1. Non-hazardous waste landfill 03/03/2008 11/09/2008

8.2. MBT plant 03/03/2008 07/01/2008

8.3. Composting plants 03/03/2008 27/10/2008

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9. Design (detailed designs):

9.1. Supporting technical infrastructure 24/09/2008 23/09/2009


9.3. MBT plant 30/09/2012 31/01/2013


10. Construction permit:

10.1. MBT plant and non-hazardous waste landfill 20/03/2009 30/07/2009



11. Preparation of documents for upcoming public procurement procedures:

11.1. Detailed design of non-hazardous waste landfill (Sadinata site) and preparation of procurement documents for selection of contractor for the construction of the landfill (including coordination with MA and PPA)

01/12/2008 20/01/2009

11.2. Evaluation of the compliance with the significant requirements for construction projects for: non-hazardous waste landfill (Sadinata site); MBT plant (Sadinata site) and composting plant (Han Bogrov site) and for performance of construction supervision during the construction of the above facilities (including coordination with MA and PPA)

01/07/2008 01/11/2009


11.4. Selection of operator of waste treatment facilities and plants

16/12/2011 30/06/2012

12. Expected launch of tender procedure(s) *:

12.1. Construction of non-hazardous waste landfill – phase one

09/04/2010 28/08/2011

12.2. Evaluation of the compliance with the significant requirements for construction projects for: non-hazardous waste landfill (Sadinata site); MBT plant (Sadinata site) and composting plants (Han Bogrov site) and for performance of construction supervision during the construction of the three major facilities

01/05/2010 27/08/2011

12.3. Supporting technical infrastructure 2008 2012

12.4. Selection of operator of waste treatment facilities and plants

01/03/2011 30/06/2012

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13. Construction stage / Construction contract (DNP included):

13.1.Composting plants (Han Bogrov site) 30/08/2012 04/2015

13.2. MBT plant (Sadinata siteЗавод за МБТ) 01/02/2013 10/2015

13.3. Non-hazardous waste landfill (Sadinata site) 28/08/2011 26/10/2013


14. Operation stage:

14.1. Composting plants (Han Bogrov site) 01/02/2012 30/03/2033

14.2. MBT plant (Sadinata site) 01/06/2012 30/03/2033

14.3. Non-hazardous waste landfill (Sadinata site) 01/11/2011 30/03/2033


Project funding sources (BGN)




Beneficiary co-financing – Sofia Municipality


359 435 408 217 825 359.8 38 439 769.38 103 170 279

103 170 279

100 % 60.60% 10.69% 28.70% 28.70%


Advance payment to the beneficiary – BGN 19 769 840.23 (20% of the grant, first phase)

Interim payments to the beneficiary – BGN 20 864 095.28 (21.11% of the grant, first phase)

6. TECHNICAL ASSISTANCE

See 3.4. Priority axis 4 “Technical assistance”.

7. INFORMATION AND PUBLICITY

Information pursuant to Article 4(2) of Regulation (EC) No. 1828/2006, including achievements, examples, major events

MEDIA COVERAGE

PRINTED MEDIA

In 2011, the Ministry of Environment and Water launched the national campaign “Green Bulgaria” financed by Environment OP. The purpose of the initiative is to promote the operational programme through a polythematic campaign with competitive, information and education elements.

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The Green Bulgaria initiative has three categories – the greenest business, the most active beneficiary and the greenest city. A three-week campaign in the electronic and printed media was organized for each category and a jury of renown public figures determined the winners in each category.

In addition to the publicity element, the campaign was accompanied by a number of reportages on BNT1, BNT World and Nova TV which covered all regions of the country. Big cities like Sofia, Varna, Plovdiv, Burgas, medium-sized settlements like Troyan, Gabrovo, Rila and Tserovo, as well as small villages like Krupnik and Ignatievo were presented. The reportages showed OPE projects in all of the three sectors and at different level of maturity, implemented by various beneficiaries – municipalities, non-governmental organizations, MoEW structures, civil associations. Seven of the reportages and one of the discussions presented the Green Bulgaria campaign. The other 64 reportages and 1 discussion promoted best practices identified in the preparation and implementation of OPE-funded projects.

The Green Bulgaria initiative received coverage not only in the journalistic genre but also in the top-audience music and entertainment programs – FM+, Fresh, BG Radio and bTV Radio Group (Enjoy, Z-Rock, Jazz FM, Classic FM and bTV Radio). In addition to the promotional spots on the campaign, “green” messages and short “green” rubrics were also broadcast. They focused the attention of the audience on many environmental facts which we are rarely aware of in our everyday life.

On the whole, the media promotion of Green Bulgaria achieved its goals. The reportages and discussions on BNT 1 were produced with a high quality of the image and journalistic elements. The “green” messages and rubrics on BG Radio, FM+, Fresh and bTV Radio Group impressed the audience with the selected background music, sound effects, actor performance and text.

Three video clips with audio versions were produced for the three categories of the campaign. They received a total of 800 broadcasts on the national terrestrial TV channels bTV, BNT1 and Nova TV, as well as 2421 broadcasts on the radio channels Horizont, Darik, BG Radio, FM+, Fresh, Enjoy, Z-Rock, Classic FM and Jazz FM.

Broadcasting of the regular Friday OPE Rubric of Darik Radio continued as an element of the OPE promotion. Two new rubrics were launched on the Bulgarian National Radio – in the noon prime time of Horizont and on Horizont+6 which is broadcast simultaneously on all six regional channels of BNR.

PRINTED MATERIALS

In addition to the electronic media, OPE-related topics are increasingly met also in the printed media. The media are a major communication channel for outreaching the target groups. Active work and cooperation with the mass media people is a priority for MA of OPE. In the course of work, the mass media representatives wishing to produce materials on OPE received active support. MA of OPE prepares on a regular basis replies to questions about the current procedures and implementation of OPE submitted by the printed and electronic media. The replies to questions, the public events and the press releases published in the OPE and MoEW websites brought about more than 1000 publications and 7 interviews in the printed and electronic media.

All news on OPE are published in the specialized OPE website and most of them also in the web-page of MoEW at www.moew.government.bg and in the official Internet portal with general information on the Structural Funds at www.eufunds.bg.

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Pursuant to a small public procurement contract for printed and online media for the third category of Green Bulgaria, 18 advertisement boxes were published in regional media, 23 in national media, 6 publications were published in regional media and 2 in national media, a banner was published in 29 information and news sites.

OPE WEBSITE

In 2011, the content in the OPE website was regularly updated. The site is accessible at two addresses of the World Wide Web: at www.ope.government.bg, as well as at www.moew.government.bg. The effective use of these sites and of the single information portal on the structural funds at www.eufunds.bg contributes to quick and timely dissemination of information.

The content of the site contains the following 16 headings:

1. General information 1.1 Managing Authority 1.2. Intermediate body 1.3. Priority axes 1.4. Financial framework

2. News 2.1. Current news 2.2. Events 2.3. Information materials 2.4. Interviews

3. Programming 2014 – 2020

3.1. Draft regulations 3.2. Presentations

4. Progress 4.1. Water sector 4.2. Waste sector 4.3. Biodiversity sector

4.4. Progress by region 4.5. Completed projects 4.6. Current projects

5. Beneficiaries 5.1. IMPORTANT 5.2. Project status

5.3. Simulation 5.4. Logos and billboards

6. Monitoring committee 6.1 Minutes from MC meetings 6.2. Progress reports 6.3 Presentations

7. Calls for proposals

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7.1. Upcoming calls for proposals 7.2. Current calls for proposals 7.3. Closed calls for proposals 7.4 Indicative annual work programme

8. Approved projects

9. Rejected projects 10. Documents

10.1. Legislation 10.2. European legislation 10.3. Bulgarian legislation 10.4. Manuals, Instructions and Guidance Notes

10.5. Committed errors and violations 10.6. Statements of MA and IB 10.7. Other documents

11. Irregularities 12. Questions and answers 13. Procurement

14. Programme evaluation 15. Glossary 16. Contacts 17. Useful links 18. OTHERS ABOUT US

In 2011, 4 notices of current calls for proposals under OPE were published in the OPE website.

A new heading “Progress” was added. It presents with text and graphics the development of OPE. The heading contains a number of subsections which present the information by sector – water, waste, biodiversity. A subsection on the progress by region was also included. Special focus is placed on completed and current projects. Photos, graphics and text are presented.

A new heading “Programming 2014 – 2020” was also added. It contains general information on the next programming period, draft regulations of the Commission, presentations, etc.

New is also the heading OTHERS ABOUT US. It contains articles, analyses, etc. on OPE.

At the end of 2010, the pages in the website were 685. 108 new were added in 2011.

Unique visits registered between 01.01.2011 and 01.01.2012 total 43 759 against 37 618 in 2010, or 16% up on 2010.

More than 126 000 visits were registered in 2011.

Most visited are: news, current calls, and documents.

In accordance with Regulation 1828/2006, the OPE website contains a regularly updated list of beneficiaries.

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INFORMATION EVENTS

With a view to attracting wider media attention, press conferences for journalists were held in 2011, with focus on the signing of grant contracts. Moreover, OPE took part in the first shovel ceremonies of infrastructure projects and in the official opening of completed projects.

Twenty-two ceremonies to mark the signing of grant contracts, 8 ceremonies to mark the commissioning of completed projects and 5 first-shovel ceremonies were organized in 2011.

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On June 6, 2011, OPE organized a major information event to award the prizes of the campaign Green Bulgaria.

ABSORBED FUNDS

In 2011, payments for implementation of the information and publicity measures amount to EUR 992 896,40 including EUR 843 961.94 from the European Regional Development Funds and EUR 148 934.46 in national co-financing

PARTNERSHIP

The partnership principal is fundamental to the implementation of European cohesion policy. It implies close cooperation between the Commission, state institutions, including at national, regional and local level, social and economic partners, non-governmental organizations, etc. during the different stages of implementation of the Structural and Cohesion Funds in Bulgaria.

In the context of a successfully applied partnership principle and with due regard to the fact that the municipalities are the main beneficiaries of OPE, MA and IB actively cooperate with and provide continuous support to municipalities on both the preparation and the implementation of projects. The actions taken in respect of the quality of the project proposals submitted under OPE consist in holding regular consultations with potential programme beneficiaries. These consultations and the active dialogue with municipalities at each stage of the preparation of the project proposal are implied by the fact that the new procedures under OPE are direct award procedures, i.e. the competition element is absent. The continuous dialogue with the OPE beneficiaries is conductive of open and transparent ongoing communication and, accordingly, of preparing project proposals of higher quality.

MA of OPE’s partnering consists also in participation of representatives of MA and the Leadership of MOEW in different forums and conferences where the members of the respective organizations who have been provided with information on OPE can deliver this information to different stakeholders, beneficiaries and the general public.

On May 13, 2011 Deputy Minister of Environment and Water Ivelina Vasileva presented Operational Programme "Environment" in the first edition of International Exhibition of European and international programs projects "Europe for us," held in Sofia.

The progress on the program, upcoming procedures during the year and the priorities of Ministry in the "Environment" for the period 2014 - 2020 were presented

The official opening of the exhibition was made by the Minister on the management of EU funds Tomislav Donchev. Her Excellency Ambassador of Hungary to Bulgaria Judith Lang, Head of European Commission Representation in Bulgaria Zinaida Zlatanova, deputy ministers and other official guests also attended The exhibition was organized by Bulgarian Economic Forum.

Representatives of MA regularly participate in the meetings of the Regional Coordinating Committees and the Regional Development Councils of the six planning regions in Bulgaria – Northeast, Northwest, North Central, Southeast, Southwest, South Central Regions The overall progress achieved under the program and the progress of projects in the region as well as other important information is being presented at the meetings.

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Representatives of MA of OPE take part on a regular basis in the annual meetings of the official information and communication platform of information and publicity officers INFORM Network established by Directorate General Regional Development of EC. The INFORM Network builds on the positive experience and operation of the informal network of Structural Funds communication officers. The objective is to strengthen further and facilitate contacts between the different units responsible for information and publicity for the Cohesion Policy. At the meetings, network members can share ideas, good practices of information and publicity activities on the operational programmes and present latest information products.

The network aims to promote the exchange of information between, communication, officers dealing with providing information on Structural Funds. The network unites all communication officers responsible for the promotion of structural funds from operational programs in all 27 Member States. Its main purpose is the exchange of experiences and finding ways to improve the quality of communication activities, raising awareness about the benefits of community among potential beneficiaries and the general public and to improve the transparancy of projects and to link existing national networks and encourage the creation of new ones.

In 2011, two meetings of information and publicity officers were held. The first meeting was held in Sofia on 17 and 18 May 2011 and the second - 6 and 8 December 2011 in Brussels, Belgium. The main issues discussed at the meeting were the rules for information and publicity for the new programming period 2014-2020.

A national network of communication officers responsible for the information and publicity of the operational programmes exists in Bulgaria. It is coordinated by the Central Information Office within the Council of Ministers and has been established with the aim to help its members coordinate and implement measures under the communication plans of the operational programmes. Network members take active part in the annual meetings of the European information networks in Bulgaria where they present topical information on OPE.

MAIN RESULTS OF THE IMPLEMENTATION OF THE OPE COMMU NICATION PLAN (2007-2010)

The European regulatory basis of transparency and publicity of assistance granted by European Union provides for a mechanism to measure the efficiency of approved actions. According to Regulation (EC) 1828/2006, the annual implementation report for the year 2010 and the final implementation report of each operational programme shall contain a chapter assessing the results of the information and publicity measures in terms of visibility and awareness of operational programmes and of the role played by the Community.

In accordance with the above requirement, the Managing Authority of OPE conducted analysis of the main results of implementation of the measures laid down in OPE’s Communication Plan. The analysis of the information and publicity activities in the initial three-year period of implementation of the operational programme should serve as a core tool for improving the effectiveness of future information and publicity measures.

1. Fulfilment of the minimum requirements The table below presents information on fulfilment of the minimum information and publicity requirements under Article 7 of Commission Regulation 1828/2006.

Fulfilment of the minimum requirements

Minimum requirements Fulfilment A major information event publicizing the launch of Requirement fulfilled on December

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Minimum requirements Fulfilment the operational programme 5, 2007.

At least one major information event a year, as set out in the communication plan, presenting the achievements of the operational programme, including major projects

Requirement fulfilled in 2007, 2008, 2009, 2010

Flying the flag of the European Union for one week starting 9 May, in front of the premises of MA

Requirement fulfilled in May 2008, May 2009, May 2010 and May 2011

Publication, electronically or otherwise, of the list of programme’s beneficiaries, the names of the operations and the amount of public funding allocated to the operations

Requirement fulfilled. The information is published in the OPE website and in the Single Information Portal on SCF in Bulgaria

2. Attainment of the aims of OPE CP The overall aims of the Communication Plan 2007-13 are:

• To raise awareness among the general public about Environment OP 2007-13 and the contribution of EU SCF in Bulgaria;

• To ensure transparency and relevant practical information for all target groups identified within the Communication Plan.

The specific aims of the Communication Plan are:

• To raise awareness among the general public and to promote greater understanding of the scope, objectives and results of OPE and the Structural and Cohesion Funds (SCF) in Bulgaria;

• To ensure that potential beneficiaries are aware of and understand fully the opportunities for receiving financing under OPE and to encourage them to prepare and submit project proposals;

• To provide beneficiaries with information on their responsibilities for implementation of operations under OPE, including on their responsibilities relating to information and publicity measures.

3. Performance on the indicators of the Communication Plan (CP) of OPE

The table below presents information on the physical progress on each quantifiable indicator (for 2007, 2008, 2009 and 2010, and cumulatively) included in OPE CP.

Performance on OPE CP indicators Indicators 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total

Indicator 1 Number of video spots created for the purposes of OPE

Achievement 0 0 0 1 3

Target 0 0 0 0 3 1 2

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Baseline 0 0 0 0 1

Indicator 2 Number of audio spots


Target 0 0 0 0 3 1 2

Baseline 0 0 0 0 0

Indicator 3 Number of broadcasts


Target 0 2 3 5 120 20 25

Baseline 0 0 2 5 91

Indicator 4 Number of press releases prepared

Achievement 35 250 523 950 1068

Target 30 250 500 500 700 1400 1 500

Baseline 0 35 285 808 1758

Indicator 5 Number of interviews arranged

Achievement 0 5 2 27

Target 0 5 5 5 50 150 200

Baseline 0 0 5 7 34

Indicator 6 Number of disseminated printed materials


Target 0 0 0 2000 2000 2500 3 000

Baseline 0 0 0 0 2000

Indicator 7 Number of sections created in OPE website


Target 0 10 0 0 1 15 15

Baseline

value 0 0 13 13 14

Indicator 8 Number of pages created in OPE website


Target 0 400 60 30 100 713 500 500

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Baseline 0 0 441 512 605

Indicator 9 Number of info events carried out


Target 0 3 3 13 10 25 30

Baseline 0 0 3 5 25 47

Indicator 10 Number of invitations sent for info events

Achievement 0 364 143 862 870

Target 0 300 500 800 850 2200 3 000

Baseline 0 0 364 507 1369 2239

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Data show that in 2010 progress was registered on all indicators.

4. Progress on the absorption of the OPE CP budget

The table below presents information about the progress registered on the execution of the OPE CP budget.

Execution of the OPE CP budget (in EUR)

Indicator Amount/percent Percent of total CP budget

Total OPE CP budget 11 177 541,00 EUR Disbursements 2007 0,00 EUR 0% Disbursements 2008 153 475,13 EUR 1,37% Disbursements 2009 17 710,16 EUR 0,16% Disbursements 2010 433 584,46 EUR 3,88 % Total disbursements 2007 – 2010 992 896,40 EUR 8,88%

Environment OP has a sizeable budget for communication activities (more than 11 MEUR) but disbursements account for 14,29% of the CP budget.

5. Conclusions and Recommendations Conclusions

• All minimum requirements under Regulation 1828/2006 are fulfilled;

• High level of attainment of the overall and specific aims of OPE CP;

• Improved awareness of SCF in general;

• Increased awareness of target groups – general public, potential beneficiaries and beneficiaries of OPE. Of all operational programmes, OPE performs best in terms of awareness;

• Successful cooperation between MA of OPE and beneficiaries. Trainings and work with the administration are given high rating;

• Significant progress is registered on all indicators.

• Total disbursements account for 14,29% of the CP budget;

Recommendations

• Implementation of communication and publicity measures should be stepped up in order to improve the absorption of funds;

• There is a need to work towards facilitated and simplified procedures which would improve the efficiency of communication between the beneficiaries and the administration.

On basis of the recommendations, in early 2011 MA of OPE opened procedures under the Public Procurement Law for organization of events, trainings, info days, etc. for the purposes of OPE and launched an information and education campaign to promote OPE. Furthermore, contracts were signed with the two top radio companies in terms of listening rate – BNR and

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Darik Radio. Regarding the recommendation to organize trainings for potential beneficiaries of Priority Axis 3 of OPE, MA prepared a special project for provision of trainings to the second-level spending units within MOEW (RIEW, BD, EEA, NPD). In conclusion it can be said that the information and publicity activities implemented in the review period have fulfilled their tasks, i.e. to promote the opportunities, provided by OPE, in all three target groups identified in the Communication Plan (general public, potential beneficiaries and beneficiaries). In view of the implementation of the second phase, it is crucial, after the reporting period, to step up the implementation of the information and publicity activities and use the whole indicative financial resource allocated for implementation of the Communication Plan.