MEETING VILNIUS 11-12 SEPTEMBER 2003 MINISTRY OF FINANCE, LITHUANIA

LITHUANIA’S OBJECTIVE 1 LITHUANIA’S OBJECTIVE 1 SINGLE PROGRAMMING SINGLE PROGRAMMING

DOCUMENT FOR DOCUMENT FOR 20042004 -- 20062006

11ST ST exchange exchange European Comission - Lithuania European Comission - Lithuania

MEETING VILNIUS 11-12 SEPTEMBER 2003

MINISTRY OF FINANCE, LITHUANIA

2

CONTENT

GENERAL STATEMENTS FOR NEGOTIATION

SPD OBSERVATION

ADMINISTRATIVE SYSTEM AND PROJECTS MANAGEMENT

MONITORING SYSTEM

ADMINISTRATIVE CAPASITY

3

GENERAL STATEMENTS FOR NEGOTIATION

4

LITHUANIAN RESPONSE ON COMMISSION POSITION AND NEGOTIATION MANDATE

Lithuania accepts major part of Commission comments and will make all necessaries correction of SPD

Some points have to be clarified or discussed more deeply (coherence with Cohesion fund strategy, introduction of sub-measures, changing of measure content, etc.)

Financial allocation among sectors and SPD investment priorities represent a political issue

5

SPD OBSERVATION

EU BUDGETINTERNAL POLICIES

(incl. funding of Ignalina NPP closure), etc.

COHESION FUND

ERDF

ESF

FIFG

EAGGF

NATIONALBUDGET

OTHER NATIONAL

FUNDS

PRIVATE FUNDING

285

543,5

OVERALL EU SUPPORT PACKAGE 2004-2006: 2677 MEUR

INTERREG 19,9EQUAL 10,5

DIRECT PAYMENTSTO AGRICULTURE

MARKET REGULATION,RURAL DEVELOPMENT

301,1 “Shengen”, institution building, other

30,4

S P D

724,8

ENERGYTRANSPORTENVIRONMENTHEALTH AND SOCIAL INFRASTRUCTUREINDUSTRY, BUSINESSTOURISMINFORMATION SERVICESEDUCATIONEMPLOYMENT MEASURESFISHERIESRURAL DEVELOPMENTAGRICULTURE

792,1

7

SPD PRIEPARATION PROCESS

M in is tries , o th e r G overn m en t in s titu t ion s an dorg an isa tion s

soc ia l-econ om ic p artn ers

S ec re to ria teMinistry of Finance,

Preparation for ES SF management division

sec to ra l su b g rou p sec to ra l su b g rou p sec to ra l su b g rou p sec to ra l su b g rou p

S P D W ork in g g rou p

S u p ervis ion C om m iss ion

8

THE GLOBAL OBJECTIVE OF THE DEVELOPMENT PLAN 2004-2006

Strengthen the preconditions for growth in long-term national economic competitiveness and rapid development of knowledge-based economy in terms of GDP and employment growth, leading to increasing well-being and higher living standards in the entire country for its all inhabitants.

9

THE SPECIFIC OBJECTIVES OF THE DEVELOPMENT PLAN

to develop physical infrastructure that would allow to encourage new, and use the existing, movement of goods, services and people through and in Lithuania to its full extent, and would also allow environmentally sustainable economic development;

to develop adaptable labour force, eliminating deficiency of its qualifications (first of all, among the unemployed and youth) and providing it with the required abilities;

to strengthen potential of economic competitiveness through providing preconditions and promoting a more viable setting up and development of businesses and more active economic restructuring

10

STRUCTURE OF SPD DEVELOPMENT STRATEGY

AXES OF IMPLEMENTATION OF PRIORITIES AND MEASURES

DEVELOPMENT OFSOCIAL-ECONOMICINFRASTRUCTURE

DEVELOPMENTOF HUMANRESOURCES

RURALDEVELOPMENTAND FISHERIES

Transport. Energy. Environment. Healthcareinfrastructure.

Education, science andstudies and socialinfrastructure.

Employment, activelabour market measures,social integration.

Education andvocational training.

Ruraldevelopment

Developmentof fisheries.

1. Fostering development of industry and business.2. Improvement of industry and business

environment.3. Development of tourism infrastructure.4. Development of information services.

DEVELOPMENTOF PRODUCTIVE

SECTOR

Support to industry andbusiness.

Tourism. Development ofinformation services.

Informacinių paslaugųplėtra

1. Investment into agricultural holdings.2. Establishment of young farmers.3. Improving processing and marketing of

agricultural and fish products.4. Development of rural areas.5. Development of forestry.6. Training.7. “Leader” plius8. Adjustment of fishing effort9. Modernisation of fishing vessels10. Improvement of conditions for fishing

activities and development of aquaticresources

11. Aquaculture

1. Improvingemployability.2. Improving competenceand adaptability of labourforce.3. Prevention of socialexclusion, socialintegration.4. Raising the potential ofhighest-quality specialists.5. Improving theconditions for life-longlearning.

1. Development and modernizationof transport system.

2. Improvement of regional andlocal traffic.

3. Assuring stability andaccessibility of energy supply.

4. Development of energy-useefficiency (in the public sector).

5. Improvement of quality of theenvironment.

6. Prevention and planning ofenvironmental damage.

7. Modernisation of healthcareinstitutions.

8. Developmento of educationaland social services infrastructure.

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SPD PRIORITIES: EXAMPLES OF INVESTMENT Repairing and construction of motor roads, development of municipal traffic infrastructure . Modernisation of energy efficiency of buildings. Reconstruction of waste water treatment facilities of cities and villages. Creation of facilities for burning communal waste. Strengthening seashore dunes and seacoast (against erosion), development of beaches. Reconstruction of hospitals, renovation of medical facilities and technologies. Renovation of buildings of institutions of education, vocational training, science and studies.

Investment into agricultural holdings. Establishment of young farmers. Development of marketing and processing of agricultural and fish products. Development of rural areas. Development of fisheries.

Development of electronic business and cleaner production technologies. Introduction of cost-saving measures in enterprises. Measures to increase export-generating foreign investment. Development of innovation and business support centres, business incubators. Development of science and technology parks and clusters. Creation and modernisation of sport and leisure infrastructure. Tourism marketing measures. Creation of public Internet access points.

DEVELOPMENT OF SOCIAL & ECONOMIC

INFRASTRUCTURE

DEVELOPMEN T OF HUMAN

RESOURCES

DEVELOPMENT OF PRODUCTIVE

SECTOR

RURAL DEVELOPMENT AND FISHERIES

Vocational training of the unemployed. Improving competence of specialists (incl. public institutions). Social and professional integration of refugees, former convicts, ethnic minorities. Preparation and competence-raising of teachers / lecturers. Development of distance and electronic learning.

ERDF

ESF

FIFG

EAGGF

12

THE CONTEXT OF SPD CO-FINANCING

The priorities of structural and fiscal policy, defined in the Lithuanian mid-term economic program, have to secure that under the SPD will be implemented the economic policy coordinated with European Commission (eg. the requirement to respect strict margins of fiscal deficit).

The structural funds are allocated as additional resources to the available national financing of the projects. It means that projects are not completely financed from the EU budget - always there is a part of national (public) financing.

The conditions of the EU membership determine that in 2004 other expenditure of Lithuanian budget, not related to implementation of the SPD, will amount to about 570 million Litas. Therefore, having in regard the budgetary tensions, there are very limited possibilities for allocating additional finances for investment areas defined in the SPD.

13

MAIN ASSUMPTION OF SPD FINANCIAL TABLE SET UP The experience of the EU member states (especially those, which benefit from the Cohesion fund

(Ireland, Spain, Portugal, Greece)) about utilizing the structural funds was evaluated.

The analysis of the factual expenditure from different national sources in 1999-2000, corresponding to the SPD priorities and measures, was made. (Having in regard that the expenditure, which will be financed on the basis of the SPD, not fully corresponds to the Lithuanian classification of expenditure, the special study was produced for such a purpose).

The additional financing, which certain sectors of economy will receive from other EU sources, was taken into account:

transport and environment sectors will receive Cohesion fund support (543,5 MEUR in 2004-2006);

to the energy sector will be allocated finances for decommissioning of Ignalina Nuclear Plant (285 MEUR in 2004-2006);

agriculture and rural development will be supported from the CAP budget through direct payments, market intervention and rural development measures (724,8 MEUR in 2004-2006).

The experience of certain sectors to manage and absorb the EU financial assistance (ISPA, PHARE, SAPARD), as well as preparation of projects to be financed from structural funds, was evaluated.

The importance of certain sectors to the development of country’s economy, defined in the Lithuanian strategic planning documents (Long-term State strategy (till 2015), Long-term strategy of the development of the Lithuanian economy (till 2015), National agreement for economic and social progress), were taken into account.

14

FINANCING OF THE MAIN INVESTMENT PRIORITIES IN LITHUANIAN SPD (2004-2006)


INFRASTRUCTURE

DEVELOPMENT OF PRODUCTIVE SECTOR

DEVELOPMEN T OF HUMAN RESOURCES

RURAL DEVELOPMENT AND FISHERIES

STRUCTURAL FUNDS’ SUPPORT 792.1 MEUR (100%):

SPD PRIORITIES :

ERDF

ESF

EAGGF

FIFG

521.5 MEUR

65.8 %

147 MEUR

18.6 %

317.7 MEUR

40.1%

123.6 MEUR

15.6%

203.8 MEUR

25.7%

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FINANCIAL WEIGHT OF ALL SPD PRIORITIES Transport Energy Environment Healthcare infrastructure Education, science and studies and social infrastructure.

Rural development Development of fisheries

Support to industry and business Tourism Development of information serrvices arama


INFRASTRUCTURE


DEVELOPMENT OF PRODUCTIVE

SECTOR

RURAL DEVELOPMENT AND

FISHERIES

TECHNICAL ASSISTANCE

Planning, management and implementation of SPD Publicity of the EU Structural Funds support

312.250

MEUR %

144.834

200.120

121.474

13.421 1.7

15.3

25.3

18.3

39.4

Employment, active labour market measures, social integration Education and vocational training

16

FINANCIAL WEIGHTS OF SPD MEASURES (I)

MEUR%PRIORITY I :

DEVELOPMENT OF SOCIAL & ECONOMIC INFRASTRUCTURE

312,250100,0TOTAL

77,15624,7Development of Infrastructure of Labour Market, Education, Vocational

Training, Research and Study Institutions and Social Services

30,8629,9Development and Upgrading of Health Care Institutions

22,1467,1Improvement of Environmental Quality and Prevention of Environmental Damage

21,6046,9Development of Energy Use Efficiency

32,40510,4Ensuring of Energy Supply Stability and Accessibility

128,07841,0Improvement of Accessibility of Transport Infrastructure and Its Service

Quality

17

FINANCIAL WEIGHTS OF SPD MEASURES (II)

MEUR%PRIORITY II :


144.834100,0TOTAL

23,17316,0Improvement of Human Resources Quality in Scientific Research and

Innovations

40,55428,0Development of Conditions for Lifelong Learning

14,48310,0Prevention of Social Exclusion and Social Integration

26,07018,0Development of Labour Force Competence and Ability to Adapt to Changes

40,55428,0Development of Employability

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FINANCIAL WEIGHTS OF SPD MEASURES (III)

MEUR%PRIORITY III :

DEVELOPMENT OF PRODUCTIVE SECTOR

200,120100,0TOTAL

59,32129,6Development of Tourism Infrastructure

41,41220,7Development of Information Services

29,81614,9Improvement of Industrial and Business Environment

69,57234,5Promotion of Industrial and Business Development

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FINANCIAL WEIGHTS OF SPD MEASURES (IV)

1,5061,24Modernisation of fishing vessels

3,0002,47Improvement of conditions for fishing activities and development of aquatic resources

1,7981,48Training

5,3084,37Adjustment of fishing effort

1,0810,89Aquaculture

MEUR%PRIORITY IV : RURAL DEVELOPMENT AND FISHERIES

121,474100,0TOTAL

1,8341,51Leader plus activities

4,7623,92Forestry

37,63330,98Adaptation and development of rural areas

20,55316,92Improvement of processing and marketing of agricultural products

7,00910,77Setting-up of young farmers

36,98925,45Investment in agricultural holdings

20

FINANCIAL WEIGHTS OF SPD MEASURES (V)

PRIORITY V :TECHNICAL ASSISTANCE

% MEUR

Planning, management and implementation of SPD 80,0 10,737

Publicity of the EU Structural Funds support 20,0 2,684

TOTAL 100,0 13,421

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ANNUAL FINANCIAL ALLOCATION FOR SPD PRIORITIES (percent of total amount)

BPD PRIORITIES EU SF 2004 2005 2006 2004-2006

I: DEVELOPMENT OF SOCIAL & ECONOMIC INFRASTRUCTURE

ERDF 27,8% 36,1% 36,0% 100%

II: DEVELOPMENT OF HUMAN RESOURCES

ESF 20,0% 30,0% 50,0% 100%

III: DEVELOPMENT OF PRODUCTIVE SECTOR

ERDF 21,0% 34,0% 45,0% 100%

IV: RURAL DEVELOPMENT AND FISHERIES

EAGGF,FIFG

26,0% 34,0% 40,0% 100%

V: TECHNICAL ASSISTANCEERDF, ESF,

EAGGF,FIFG

27,5% 33,3% 39,2% 100%

SPD, TOTAL 24,4% 34,1% 41,5% 100%

SPD FINANSING, MEUR 193,089 270,133 328,878 792,1

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EX-ANTE EVALUATION OF THE MACROECONOMIC IMPACT OF THE PROGRAMME

• Successful absorption of Structural Funds assistance would cause an increase in GDP over the baseline scenario from 1.2% in 2004 to 1.8% in 2006, or from 690 mln Litas in 2004 to 1139 mln Litas in 2006

• The number of employed workers would increase by 28 200

These calculations support the assumption that the multiplier effect is close to 1.02.

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ESTIMATED OUTPUTS OF LITHUANIAN SPD

Between 31,000-35,000 business start-ups and existing SMEs are likely to be assisted. This includes training support under Priority 2, support for SMEs under Priority 4 as well as direct and indirect support for businesses under Priority 3

Approximately 19,000-20,000 individuals are likely to benefit from training assistance under mainstream ESF. Of this total, around 8,700 will be existing employees receiving retraining to upgrade skills. A further 5,500 unemployed trainees will receive support to acquire basic qualifications. Additionally, some 1,900 individuals will receive training support under the social exclusion priority;

An additional 1,600 individuals should benefit from other training support under the agricultural and rural development priority. Taking Priorities 2 and 4 together, some 20,600-21,600 individuals might be trained.

Overall, some 49,000 – 57,000 jobs might be created by the programme after taking job losses into account. Once temporary construction jobs and ‘jobs redistributed’ are excluded, the programme might be expected to create between 27,000 – 31,000 permanent, full-time new jobs. This correlates closely with the ‘top-down’ estimate based on macroeconomic modelling of 28,000 new jobs

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EMPLOYMENT EFFECTS OF SPD PRIORITIES’ INVESTMENTS

Priority 1 – investment in physical infrastructure will create construction jobs in the short term and improve the environment for job and wealth creation generally in the longer term;

Priority 2 – EU-funded training support will contribute to increasing the competitiveness of businesses leading to additional job creation – directly in assisted businesses themselves and indirectly through supplier and consumption effects. There may also be ‘jobs redistributed’ as previously unemployed people gain jobs as a result of training support;

Priority 3 – support for new start-ups and interventions to assist existing firms will lead to job and wealth creation with direct and indirect effects. Against this, the restructuring of larger undertakings is likely to lead to job losses although Priority 3 retraining interventions should help to minimise unemployment;

Priority 4 – likewise, rural development interventions aimed at diversifying local economies should lead to new employment opportunities being created although again there will be job losses in the agricultural sector.

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ESTIMATSD EMPLOYMENT IMPACT (Objective 1 Expenditure)

Priority FinancialAllocation (EU +National)

Estimated directemployment impacts

Priority 1 - Social and EconomicInfrastructure

€480,385,000 8,000-10,000*

Priority 2 - Development of HumanResources

€193,112,000 [18,000-20,000]

Priority 3 - Development ofProductive Sector

€307,878,000 22,000-24,000

Priority 4- Agriculture, Rural Areasand Fisheries

€186,883,000 5,500-7,500

Total (inc redistributed jobs) €1,168,258,000 53,500-61,500

Total (excl redistributed jobs) €1,168,258,000 35,500-41,500

Total (excl redistributed and excltemporary construction jobs)

€1,168,258,000 27,500-31,500

*Note: these will be temporary construction industry jobs linked to construction projects

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ADMINISTRATIVE SYSTEM AND PROJECTS MANAGEMENT

27

SCHEME OF EU SF SUPPORT ADMINISTRATION IN LITHUANIA

MIN. OF FINANCE

MANAGING AUTHORITY

MINISTRY OF FINANCE

Paying Authority for ERDF, ESF, EAGGF and FIFG

MINISTRYOF

EDUCATION&

SCIENCE

MINISTRY OF

ENVIRON-MENT

MINISTRY OF

TRANSPORT

MINISTRYOF

ECONOMY

TRANSPORTINVESTMENT

DIRECTORATE

ISPAIMPLEMENTING

AGENCY

MANAGING AND PAYINGAUTHORI-TIES

INTER-MEDIARYINSTITU-TIONS

IMPLEMEN-TINGAGENCIES

. LITHUANIAN BUSINESS SUPPORT AGENCY OF THE MIN.OF ECONOMY

CENTRAL PROJECT

MANAGEMENT AGENCY

MINISTRY OF SOCIALSECURITY& LABOUR

MINISTRY OF

AGRICULTURE

NATIONAL PAYINGAUTHORITY

HUMAN RESOURSES

DEVELOPMENTPROGRAMMESFOUNDATION

MINISTRYOF

HEALTH-CARE

ISDC

MONITORING COMMITTEE

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1. Improvement of Accessibility of Transport Infrastructure and Its Service Quality

2. Improvement of Environmental Quality and Prevention of Environmental Damage

3. Ensuring of Energy Supply Stability and Accessibility4. Development of Energy Use Efficiency5. Development of Tourism Infrastructure6. Promotion of Industrial and Business Development7. Improvement of Industrial and Business Environment

MINISTRY OF ENVIRONMENT

MINISTRY OF TRANSPORT

MINISTRY OF ECONOMY

MINISTRY OF SOCIALSECURITY & LABOR

MINISTRY OF EDUCATION &SCIENCE

MINISTRY OF AGRICULTURE

MINISTRY OF HEALTH

IMPLEMENTINGAGENCY

8. Development of Employability9. Development of Labour Force Competence and Ability to Adapt to Changes10. Prevention of Social Exclusion and Social Integration

12. Development of Conditions for Lifelong Learning13. Improvement of Human Resources Quality in Scientific Research and Innovations

14. Investment in agricultural holdings 15. Setting-up of young farmers 16. Improvement of processing and marketing of agricultural products 17. Adaptation and development of rural areas 18. Forestry 19. Leader plus activities 20. Training 21. Adjustment of fishing effort 22. Modernisation of fishing vessels 23. Improvement of conditions for fishing activities and development of aquatic resources 24. Aquaculture

25. Development and Upgrading of Health Care Institutions

AREA OF SUPPORTINTERMIDIATE BODY

26. Development of Information ServicesISDC

11. Development of Infrastructure of Labour Market, Education, Vocational Training,Research and Study Institutions and Social Services

NPA

TID

ISPA IA

LBDA

HRDPF

CPMA

HRDPF

CPMA

29

STRUCTURAL FUNDS ADMINISRATION SCHEME - ESF

Financial AssistanceDepartment

National FundDepartment

MONITORINGCOMMITTEE

- Monitoring ofProgramme’simplementation

Managing Authority(Ministry of Finance)

Paying Authority(Ministry of Finance)

Selection Committee

(representatives from the Ministries of Finance, SocialSecurity & Labour, Education & Science, Economy,Interior, other line Ministries).

- Selection of projects.

Intermediary Institution

Ministry of Social Security & LabourMinistry of Education & Science

HUMAN RESOURSES DEVELOPMENT PROGRAMMES FOUNDATION (ESF Agency)

Raising of competence of teachers / lecturers, preparation and implementation of vocational training programmes,subsidies for the creation of new jobs, training subsidies for the unemployed, scientific laboratories and equipment,support to specific research projects, computerization of education / training institutions

Aid recipients

- Preparation of implementation of projects

Implementing Agency

30

STRUCTURAL FUNDS ADMINISRATION SCHEME - ERDF



MONITORINGCOMMITTEE




Selection Committee

(representatives from the Ministries of Finance,Economy, Interior, other line Ministries).



Ministry of Transport and CommunicationsMinistry of EconomyMinistry of EducationMinistry y of HealthcareMinistry of Social Security and Labour

ISPA IA

Water treatment, wastelandfills

Transport InvestmentDirectorate

Local, regional roads, quays,ports

Lithuanian Business SsupportAgency Min. of Economy

Investment sites, grants,preferential loans, financing ofinterest for private enterprises,industrial parks, business events

Central ProjectManagement Agency

Hospitals, schools,tourism infrastructure

Aid recipients


Implementing Agency

31

STRUCTURAL FUNDS ADMINISRATION SCHEME – EAGGF & FIFG



MONITORINGCOMMITTEE




Selection Committee

(representatives from the Ministries).



Ministry of Agriculture

National Paying Authority

Rural tourism, development of alternative activities, measures of veterinary and phytosanitation, certification ofagricultural products, support to associations, improvement of storage quality, improvement of the quality of ships.

Aid recipients


Implementing Agency

32

MANAGEMENT OF THE COHESION FUND

Ministry of Finance

Ministry ofEnvironment

Ministry of Transport &Communications

ISPAImplementingAgency(environmentsector)

ISPAImplementingAgency(transportsector)

Intermediary co-ordinationand supervision

- Co-ordination and supervision of project implemenation in the sector

- Preparation of project applications- Participation in the meetings of MC, preparation of reports

ImplementingAgenciesProjectimplementation

Centralco-ordinatinginstitution


-monitoring of projects’simplementationMA for the

CohesionFund

PA for the Cohesion Fund

33

Project applicants: municipalities, SME’s, public enterprises, NGO’s.

IMPLEMENTING BODY

Call for proposals.Project evaluation.Recommendations and remarks to Selection committee.

Signing support contracts with successful applicants.

INTERMIDIATE BODYPreparation of application forms and tender procedures.

Establishment of Selection committee.

Decision on financing (according to the recommendations of Selection committee).

MANAGING AUTHORITY

Participates in the selection committees

PROJECT APLICATION, EVALUATION AND SELECTION

Selection committeeAssessment of projects.

Recommendations to the intermediate

body on projects to be financed.

34

FINANCIAL FLOWS

MANAGING AUTHORITYEnsures that all the payments are

made according to regulation No 1260/1999.

PAYING AUTHORITYChecks and certifies the declarations of

expenditure submitted by intermediate bodies and submits them to the EU Commission.

Opens four separate Treasury accounts for each structural fund.

INTERMIDIATE BODYChecks and confirms the payment requests for Treasury

received from the implementing body andsends them to the Treasury for reimbursement. Prepares declarations of expenditure and sends

them to the Paying Authority

IMPLEMENTING BODYChecks payment claims,

prepares payment requests for Treasury and sends them to the intermediate body.

EU COMMISSION

PROJECTSubmits payment claims and necessary documentation

TREASURY

Pays to the projects fromPA accountsIB accounts

MANAGEMENT AND ADMINISTRATIVE CONTROL

Payaging Authority (MA)Certification of the declaration of expenditure

comparison of payment information from different sources (e.g. accounting systems,

monitoring system)On the spot verifications in intermediate

and implementing bodies

Managing Authority (PA)Controls on the basis of descriptions of management and control systems

visits the institutions and projects to verify the functioning of the

systems according to the principles of sound financial management

Intermediate Body (IB)- Control of management and control systems of the IA

-Verification of the payment information from IA to be collected -and send to the Treasury to pay for projects and PA for the declaration of expenditure

- Control of irregularities and corrections

Projects- Control of invoices and bookkeeping

Implementing Agency (IA)- Control of application process, - Control of payment claims (eligibility checks),

- On the spot checks, - membership in the steering groups of the projects

AUDITING

Commission

Managing Authority

Paying Authority

Implementing Body

Implementing Agency

Final RecipientAuditing before submission

of payment claims

State ControlWinding-up Body

Intenal audit unitExecuting 5% checks

Systems audit

37

ADMINISTRATIVE CAPASITY STRENGTHENING PLAN (4)

Institutions, responsible for EAGGF & FIFG administration

Institution Amount to be administrated, MEUR

Present number of employees and current responsibilities

Estimated and planned number of employees

Ministry of Agriculture 162 EAGGF FIFG + NF

13 15

National Paying Agency (11 mesures, 1 Intermediate Body)

110 SAPARD 38

38


Functions:- Periodically evaluates the implementation of the SPD goals on the basis of monitoring indicators defined in the SPD and Program Complement;- Considers the adjustments of the SPD prepared by other institutions and proposes themto the Managing Authority;- Confirms the Program Complement and its adjustments (including monitoring indicators and project selection criteria);- Discusses and approves the proposals of the Republic of Lithuania to change the EU Commission decision by which the SPD was approved; - Considers and approves annual and winding-up reports of the SPD implementation before sending them to the EU Commission.

Interim Monitoring Committee will be established by Government Resolution not later that December 1, 2003.It will perform above mentioned functions until Monitoring Committee will be established.

39

MONITORING SYSTEM

40

SYSTEM OF INDICATORS, APPLIED FOR MONITORING OF SPD IMPLEMENTATION (1)

Types of indicators: Output indicators relate to a particular activity. They are measured in physical or

monetary units (e.g. length of road constructed, etc.).

Result indicators relate to the direct and immediate effect brought about by a programme. They could be quantitative as well as qualitative.

Impact indicators refer to the consequences of the programme beyond the immediate effects on its beneficiaries.

Levels of indicators: Core indicators are programme level indicators. They are to be monitored across

several measuers (e.g. number of jobs created, number of jobs safeguarded, number of firms financially supported). Data is to be generated by single project and entered into the electronic data system.

Measure level indicators concern only one or two measures. The target levels are not appointed for them in the SPD.

41

Nature of indicators:

Physical indicators describe expected impacts of project implementation realised by the applicant for granting the support in technological or qualitative level of products or services or of production process, in the parameters of trade economy, in the area of social conditions (employment, qualifications and quality of human resources, etc.).

Financial indicators describe the intensity of support from public resources. Financial indicators quantitatively describe the amount of co-financing of total projects costs from public funds and the economic efficiency of provided public support.

Specific indicators serve for consideration of auxiliary conditions, which are important in the process of evaluation of the application for granting the support. Specific indicators usually describe a specific nature of support programme, broader economic and social context or regional aspects of implementation of support programme.


42

Indicators are to be collected from particular project and fed into the integrated, computerised monitoring system by the responsible body. This

body is also responsible for the correctness of collected data. No Type of indicator

---------------Measure specific /Core indicator

Name Meaning ofindicator

Measureunits

Method ofcollection

Bodyresponsiblefor collection

Output OutputResult Result

Impact Impact


43

Single National Structural Funds Management (SFM) and Monitoring Information system (SFMIS):

- will ensure the transparency and the accessibility of financial and operational data - will facilitate data transfer between involved bodies and the Commission- will allow to follow all administrative decisions relevant to EU support and audit trails- will allow to follow the operational and financial sides of

- the single project, financed by any SF and Cohesion Fund, implementation- the SPD measure progress and the whole SPD progress- the INTERREG III and EQUAL initiatives programmes

progress

MONITORING SYSTEM

44

Time table for SFMIS development

Start of the project - 2003 JulyApproval of technical concept of the SFMIS –

November 2003Launching and testing of EAGGF and FIFG

modules – January 2004 Launching and testing of the whole system – May

2004

45

ADMINISTRATIVE CAPASITY

46



Present number of employees and present functions


Managing Authority

822.5 SF 543.5 CF 264 NF

7 preparation for SF 4 preparation for CF

25 as MA for SF 5 as MA for CF

Paying Authority 8 National Fund 11

Central Project Management Agency (2 measures, 1 Intermediate Body)

18 TA 35 Phare

Managing Authority and Paying Authorityfor all Structural Funds

47


Institutions, responsible for ERDF administration Institution Amount to be

administrated, MEUR



Ministry of Economy 5 measures

387 ERDF + NF 5 15

Lithuanian Business Support Agency (5 measures, 1 Intermediate Body)

387 ERDF + NF 24 Phare SES 65

Ministry of Transport 1 measure

171 ERDF + NF 3 7

Tansport Investment directorate (1 measure, 1 Intermediate Body)

171 ERDF + NF 11 ISPA 6

Ministry of Environment 1 measure

30 ERDF + NF 5 6

ISPA Implementing Agency (1 measure, 1 Intermediate Body)

30 ERDF + NF 7 ISPA 7

Ministry of Health Care 1 measure

41 ERDF + NF 5 6

Information Society development Committee 1 measure

55 ERDF + NF 4

Ministry of Social Security and Labour Ministry of Education and Science 1 measure

103 ERDF + NF

Central Project Management Agency (3 measures, 3 Intermediate Bodies)

217 ERDF + NF

35 Phare

65

48


Institutions, responsible for ESF administration

Institution Amount to be administrated MEUR



Ministry of Social Security and Labour 3 measures

108 ESF + NF 5 12

Ministry of Education and Science 2 measures

85 ESF + NF 3 10

Human Resources Development Programmes support fund (5 measures, 2 Intermediate Bodies)

193 ESF + NF 9 Phare SES 40

49


Institutions, responsible for EAGGF & FIFG administration




Ministry of Agriculture 162 EAGGF FIFG + NF

13 15

National Paying Agency (11 mesures, 1 Intermediate Body)

110 SAPARD 38

Documents

MEETING VILNIUS 11-12 SEPTEMBER 2003 MINISTRY OF FINANCE, LITHUANIA