REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME

REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME

12TH SECTORAL MONITORING COMMITTEE MEETING

Ministry of Science, Industry and Technology

27 June 2013

AGENDA

1. Introduction and Adoption of the Agenda a) Introductory Remarks (HOS, EC)b) Approval of the Minutes of the previous SMC and the Agenda of the Meeting

(HOS, EC)

10.30 -10.45

2. Information on Annual Audit Activity Report for RCOP (Audit Authority) 10.45 -11.00

3. Information on Programminga) 1st project package (OS)b) 2nd project package (OS)c) 3rd project package (OS, EIF)d) 4th project package and individual projects (OS)

11.00 -11.30

4. Information on Procurement and Implementation a) Tendering and contracting (OS)b) Implementation (OS)c) Absorption (n+3), procurement plans and disbursement forecasts (OS)d) Updated payment forecast and payment cycle for 2013 (OS, NAO)

11.30 -12.15

5. Information on Technical Assistance and Communication Activities a) Technical assistance activities (OS)b) Communication activities (OS)

12.15 -12.30

6. Monitoring Activities a) Discussion and Endorsement of 2012 Sectoral Annual Implementation Report

(OS)b) Information on Monitoring Report and Monitoring Sheets (OS)

12.30 - 12.45

7. Information on IPA II Programming (EC, NIPAC) 12.45 - 13.008. AOB and indicative date of the next SMC meeting 13.00 - 13.159. Lunch 13.30 - 14.30

• 1st project package

• 2nd project package

• 3rd project package

• 4th project package

• Individual projects

• Overall Assessment

PROGRAMMING

TOTAL BUDGET: 113.634.163 €

Establishment of 3 Business Incubators in Selected Regions and Development of a Network among

Incubators in Turkey, KOSGEB

Establishment of Innovation Centre for Food- INNOFOOD CENTER, TUBITAK

Establishment of 3 Technology Development Zones, MoSIT-DG for Science and Technology

Winter Tourism Corridor in Erzurum, Erzincan and Kars, Ministry of Culture and Tourism

Enlargement of the European Turkish Business Centres Network to Sivas, Antakya, Batman and Van,

TOBB

Empowering SMEs for networking and inter-regional cooperation, Ministry of Economy

Technical Assistance + Publicity, MoSIT – RCP-CID

TOTAL OPERATIONS: 11

APPROVED OPERATIONS: 10

1st PROJECT PACKAGE

TÜBİTAK, The Scientific and Technological Research Council of Turkey

INNOFOOD - MAJOR PROJECT

First Submission of the Documents – 26.02.2010 Admissibility Letter –

23.04.2010 Comments from the EC – 11.10.2010 Second Submission of the Documents – 29.07.2011 Comments from the EC – 22.03.2012 Meeting with EC Representatives –

14.09.2012 Unofficial Submission of Revised Docs. – 22.10.2012 Unofficial Submission of Revised Docs. – 12.04.2013

1st PROJECT PACKAGE

Prioritized Projects by the call: 47Current Number of Projects: 37 Approved Projects: 30OIS in Preparation: 7Total Budget of Approved Projects: € 206.767.633

2nd PROJECT PACKAGE

2nd PROJECT PACKAGE - PLANNING

Measure Name of the Proposal ERA Status Estimated

Submission Date

1.3

Establishment and Operationalisation of an Applied R&D and Service Centre, specialized on Food Industry, at Çankırı Karatekin University

Çankırı Karatekin University

OIS in preparation 3rd Quarter of 2013

2.1

Establishment and Operationalisation of a Lab Services Unit at the Hazelnut Research Station in Giresun

Hazelnut Research Station


1.4Ardahan Yalnızçam Winter Sports Tourism Development Operation

Ardahan Special Provincial Administration


2nd PROJECT PACKAGE - PLANNING

Measure Name of the Proposal ERA StatusEstimated

Submission Date

2.2Development of Dairy Products Cluster in Eastern Anatolia Through a Market Oriented Strategy

Kars Governorship

OIS in preparation3rd Quarter of

2013

1.4Kommagene Nemrut Tourism Oriented Revival Project (KN-TOC)

Adıyaman Governorship


2013

1.1

Establishment of cold storage house by using renewable energy (soil, solar) and Apricot Clustering Valley for apricot processing SMEs

Malatya Governorship and Malatya Commodity Exchange


2013

2.1Increasing Regional Competitiveness in Kars, Ağrı, Ardahan and Iğdır Provinces

Kars Governorship


2013

3rd PROJECT PACKAGE

• 51,15 M.€ IPA Contribution• 900 M. € Credit Volume for SMEs• Under implementation• 5 Steering Com. held.• Need Assessment for KGF completed• KGF Capacity Building phase II to start Q1 2013• Capacity Building for banks kick-started Q3 2012• Capacity Building for DGIT to start Q4 2012

Greater Anatolia Guarantee

Facility - GAGF

•16.3 M. € IPA Contribution•Contribution Agreement - 31.08.2011•Official launch of the project – 19.01.2012•Publication of Call for Expression of Interest - 20.01.2012•7 eligible applications by deadline -20.03.2012•1 proposal approved by the Investment Committee in July 2012•Legal negotiations with selected fund manager-on going • Announcement of Fund Manager officially (Q3-2013)

G-43 Anatolian Venture

Capital Fund

• Establishment of Technology Transfer Accelerator Fund - € 30.000.000

• Offical Submission 23.11.2012

New project proposals

Results as of 1Q of 2013

• Total Volume: > EUR 390 million

• Total Number of Loans: >4,900

• Total Number of SMEs: >4,900

• Supprassed the target by 196%

3rd PROJECT PACKAGE

Next Steps

• GAGF’s budget was increased by EUR 19,2 m in Dec 2012

– Phase 1: EUR 32m budget

– Phase 2: EUR 19,2m budget

• EUR 100m more to be deployed from Phase 1

• EUR 400m loan volume to be created by Phase 2

3rd PROJECT PACKAGE

4th PROJECT PACKAGE

Number of Projects: 12 Approved Projects: 4OIS in Preparation: 8Total Budget of Approved Projects: € 29.531.607

# Measure Title of the OperationEnd Recipient of

AssistanceStatus

Indicative Budget (€)

1 1.1Sivas Industry Incubator Center Project (ISGEM)

Middle Anatolia Dev.Agency (ORAN)

Submitted to EUD on 08 May 2013

7.190.305

2 1.1 Samsun Logistics CenterMiddle Blacksea Dev.Agency (OKA)

2nd-3rd Q of 2013 45.000.000

3 1.1 Processing and Storing of Sea FoodNorth Anatolia Dev.Agency (KUZKA)

3rd Q of 2013 9.510.664

4 1.3Establishment of Nanotechnology and Nonwoven R&D Centre

Silkroad Dev.Agency (İKA)

3rd Q of 2013 9.612.357

5 2.2 Turkish Cluster AcademyMoSIT-DG for Industrial Zones

3rd Q of 2013 4.500.000

6 1.3 Carpet Incubator CentreSilkroad Dev.Agency (İKA)

3rd Q of 2013 8.888.113

7 1.4 Kars City with its Historical IdentitySerhat Dev.Agency (SERKA)

3rd Q of 2013 9.500.000

8 1.3Shoe-making Training and Design Centre and Shared-use Workshop

East Mediterranean Dev.Agency

3rd Q of 2013 6.471.000

PRIORITIZED LIST OF PROJECTS IN 4TH PACKAGE (IND. 101.000.000 €)

# MeasureTitle of the Operation End Recipient of Assistance Location Status Indicative

Budget (€)

2 1.4Sustainable Tourism Development in Kaçkar Mountains National Park

Ministry of Forestry and Hydraulic Works

Rize 3Q of 2013 9.500.000

3 1.4 Increasing Tourism Capacity in Van

Ministry of Culture and Tourism

Van 3Q of 2013 9.500.000

OPERATIONS SUBMITTED BY THE NATIONAL PUBLIC BODIES (IND. 28.600.00 € )

APPROVED OPERATIONS FROM THE LAST SMC MEETING

Name of Proposal Location Budget (€)Submission

DateApproval Date Package

Yozgat Investment Support Office Yozgat 2.393.000 11.01.2013 12.02.2013 2nd

Establishment of Enterprise Development Center (İŞGEM) in Bingöl

Bingöl 5.104.131 12.11.2012 16.05.2013 4th

Şanlıurfa Cotton Licensed Warehouse

Şanlıurfa 9.115.122 15.05.2013 06.06.2013 4th

The Common Use Workshop Project

Hakkari, Bitlis,Muş,

Van8.784.857 27.02.2013

25.06.2013via e-mail

4th

Establishment of a Enterprise Development Center in Gümüşhane

Gümüşhane 6.527.497 15.05.201325.06.2013via e-mail

4th

Increasing Tourism Capactity in Şanlıurfa

Şanlıurfa 9.610.838 07.06.201307.06.2013via e-mail

NPB

Total Number of Operations : 66Total Number of approved operations: 47Operations in preparation: 19Total Budget of OP: 551.490.025 €Total Volume of Project Portfolio: ind. € 607 mil.Total Budget of Approved OISs: ind € 397 mil. (72% of OP Budget)

OVERALL ASSESSMENT

(Total Budget: ind 607 MEUR)

WHOLE OPERATION PORTFOLIO

Number of Approved OIS

71%

Number of OIS in Preparation

29%

Number of Approved OIS 47Number of OIS in Preparation 19TOTAL 66

Priority 1: Improvement of Business Environment(Budget. ind 540 MEUR)

PROGRESS BY PRIORITY AXES

Number of Approved

OIS72%

Number of OIS in Preparation

28%

Number of Approved OIS 38Number of OIS in Preparation 15Total 53

Priority 2: Strengthening of Enterprise Capacity and Foster Entrepreneurship (Budget: ind. 40 MEUR)

PROGRESS BY PRIORITY AXES

Number of Ap-proved OIS; 64%

Number of OIS in Preparation 36%

Number of Approved OIS 7Number of OIS in Preparation 4Total 11

MEASURE BASED PROJECTS IN TARGET REGION

15 Growth Centers

Provinces not covered:• Artvin• Iğdır• Ağrı • Şırnak• Kilis• Tunceli

1.1 1.3 1.4 2.1 2.2

• Tendering and Contracting

• Implementation

• Absorption (n+3), Procurement Plans

and Disbursement Forecasts

• Updated Payment Forecast and Payment

Cycle for 2013

PROCUREMENT and IMPLEMENTATION

TENDERING and CONTRACTING

*Starting from 01.07.2013

NUMBER of SIGNED and FORESEEN CONTRACTS

FWC Direct Grant TA Supervision Works Supply0

5

10

15

20

25

30

2 2

65

655

65

1

25

20

22

28

1

3

Until 30.06.2013 2013* 2014 2015

REALISED and FORESEEN CONTRACTED BUDGET

109.560.255,24

43,243,727

173.272.987

5.812.507,00

Until Today

2013

2014

2015

€ 222 million is foreseen to be contracted until April, 2015.

Total of 7 contracts

Type of Contracts

Works SupervisionTechnical

assistance / FW

Supply Total

Number of Contracts

0 0 2 5 7

Budget(Euros)

0 0 187.968 865.470 1.053.438

FINALISED CONTRACTS (since 2012)

Total of 19 contracts – Cumulative Total(*Only 2 Contracts added since December 2012)

Type of Contracts Works Supervision Technical assistance Supply DirectGrant Total

Number of Contracts 6 5* 6 * 0 2 19

Budget(Euros) 18.162.683 2.396.435 20.489.805 0 67.457.985 108.506.818

CONTRACTS UNDER IMPLEMENTATION (as of June 2013)

PROJECTS COMING TO IMPLEMENTATION

Type of Contracts Works Supervision Technical

Assistance Supply Total # of Contracts Budget (€)

2013 5 6 5 1 17 43,243,727

1st Q / 2014 4 3 3 8 18 34,345,932

2nd Q / 2014 17 17 12 6 52 103,084,818

3rd Q / 2014 1 - 8 5 14 20,581,026

4th Q / 2014 - - 2 9 11 15,261,211

2014 22 20 25 28 95 173,272,987

2015 - - 1 3 4 5,812,507

Total # of contracts 27 26 31 32 116 222,329,221

Budget (€) 98,377,844 10,834,844 60,001,380 53,115,153 222,329,221

YEARLY BUDGET ALLOCATION for RCOP

Year EU Contribution (EUR) %85

National Contribution(EUR) %15 Total EUR

%100

2007 41.900.000 7.394.118 49.294.118

2008 43.500.000 7.676.471 51.176.471

2009 54.800.000 9.670.588 64.470.588

2010 71.430.000 12.605.294 84.035.294

2011 88.020.000 15.532.941 103.552.941

2012 89.016.598 15.708.811 104.725.409

2013 91.720.588 16.185.986 107.906.574

TOTAL 480.387.186 84.774.209 565.161.395

Advance payment %3064.275.000 EUR

PREPARATION of DISBURSEMENT FORECAST

Contract

Project

Measure

Priority

Programme

Projects/Contracts under;• Implementation• Procurement• Programming

PAYMENT CYCLE for 2013

PAYMENTS

Paid until MayTo be paid from

1st of June to 31st of October

To be paid from 1st of November to 31st of December

TOTAL

2010 27,259,577.18

2011 16,710,640.01

2012 20,226,435.60

2013 2,328,945.53 42,934,510.00 5,328,515.47 50,591,971.00

Priority 1 2,328,945.53 9,867,336.19 3,012,454.13 15,208,735.85

Priority 2 0.00 4,284,269.44 356,634.54 4,640,903.98

Priority 3 0.00 3,282,904.37 1,959,426.80 5,242,331.17

Major Project TTA 0.00 25,500,000.00 0.00 25,500,000.00

ABSORPTION (N+3)

Disbursement Forecast (EU Contribution) - June 2013

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TOTAL PRIORITY I 27,200,000 13,855,000 19,379,531 15,208,736 88,880,849 61,314,193 12,906,736 818,360 239,563,405

PRIORITY II 1,219,338 271,747 4,640,904 7,806,186 7,105,195 2,966,426 174,399 24,184,193

PRIORITY III 59,577 1,636,302 570,757 5,242,331 4,656,851 4,965,142 2,714,638 19,845,599

OHTER (non approved project)

0 0 0 25,500,000 6,000,000 44,000,000 44,000,000 41,402,345 160,902,345

TOTAL (per year) 27,259,577 16,710,640 20,222,034 50,591,971 107,343,886 117,384,530 62,587,799 42,395,104 444,495,542

TOTAL (Cumulative) 27,259,577 43,970,217 64,192,251 114,784,222 222,128,108 339,512,638 402,100,438 444,495,542 444,495,542

Certified to EC (by NF) 27,259,577 43,970,217 64,304,315

Allocated fund for RCOP 41,900,000 43,500,000 43,179,315 71,430,000 88,020,000 89,016,598 91,720,588 468,766,501

N+3 Expenditure Requirements (per year)

41,900,000 43,500,000 43,179,315 71,430,000 88,020,000 89,016,598 0 91,720,588 468,766,501

Pre-finance* 42,060,000 22,215,000 64,275,000

Expenditure paid and declared cumulative

-160,000 21,125,000 64,304,315 135,734,315 223,754,315 312,770,913 312,770,913 468,766,501 468,766,501

N+3 Gap (Cumulative) 27,419,577 22,845,217 0 -20,950,093 -1,626,207 26,741,725 89,329,525 -24,270,959 -24,270,959

Assumptions:TTA project under 1.2. will be approved in 2013 (EU Budget € 25.500.000)EU Budget of the 4th PP is € 90.747.975,00

TECHNICAL ASSISTANCE ACTIVITIES

TECHNICAL ASSISTANCE ACTIVITIES

Project progress over the last seven months

1 December 2012– 27 June 2013

Result 1: Achievements in Reporting Period

• QAC Department – revision of 17 Manual Chapters (out of 19) - Expected to fully conclude by mid July 2013

• TA to RCP-CID ToRs (TA II, Project Preparation Facility – PPF and Multi Annual Plan for Direct Expenditure) have been prepared. Shortlist for TA II is being prepared by CA and EUD. TA II Project planned to be start in February or March 2014.

• One visibility event organized in Urfa & Mardin (June 2013)

Result 1 - Achievements in Reporting Period (2)

• Assistance in the preparation of the template of the Operation Monitoring Reports (OMR)

• 2 Study Visits organized: Ireland (11th to 15th of March 2013) and Hungary (27th to 31th of May 2013)

• 21 internships organized to Hungary (4), Latvia (5), Lithuania (4), United Kingdom (4) and Italy (4)

• Trainings: 11 training delivered for RCP-CID staff, with 158 attendants.

Result 2 - Achievements in Reporting Period

• Procurement and Implementation Guidelines for end recipients revised.

• 4 trainings to ERAs delivered during the period: 2 on Procurement, 2 on Implementation and 1 on Monitoring and Irregularities, with a total of 212 participants.


• 2 Tourism projects have been developed: Nemrut and Kaçkarlar.

• 12 projects (including one major – Samsun Logistics Centre) are being prepared.

• Support to Implementation Division proceeding, as foreseen, with 2 NKED.


Tender Dossier Preparation

• Six new projects have been prepared and delivered by the design team: GAP Food Cluster, Business Cluster Maraş Pepper, Osmaniye, Elazıg, 2 components of Bafra and one component of Sorgun.

• Currently working on one additional tender dossier; GETAM, expected to be delivered in August 2013.

• Totally, tender dossiers of 24 contracts (out of 41) have been finalised up to date under 14 projects.

• Tender dossiers of 17 contracts are still under revision.


• Regular procurement meetings held with EUD and on the job support to FCD staff on procurement.

• Regular monitoring and updating of the Procurement Plan and support / coaching on all procurement documents.

• Daily on the job coaching and support to FCD in financial operations & accounting (Tax exemption Regulation, VAT information forms, Withholding Tax issues, etc).

COMMUNICATION ACTIVITIES

• Events

Operational Agreement Signature Ceremony of Şanlıurfa Projects (June 10, 2013 )

Contract Signature Ceremony of Mardin Sustainable Tourism Project (June 11, 2013 )

VISIBILITY, PUBLICITY and IMAGE-BUILDING ACTIVITIES

• Promotional Materials

• Outdoor Promotional Materials (Billboard-banner)

VISIBILITY, PUBLICITY and IMAGE-BUILDING ACTIVITIES

• Regional SeminarsAttendance to 3 University-Industry Cooperation Regional Meetings 6-26 December 2012 (Sinop, Trabzon, Rize)

Attendance to 9 Regional Seminars , 8 May – 20 June 2013 (İzmir, Adana, Diyarbakır, Van, Ankara, Samsun, Erzurum, Konya, İstanbul)

• Conferences

Attendance to «Growing together - International Conference on EU Cohesion Policy» held on March 28, 2013 in Ankara

INFORMATION ACTIVITIES

• Presentations

Publicity/ Visibility presentation for ERA 4 presentation in 2012 1 presentation in 2013

• Website management

News and documents were updated

Information requests were answered

INFORMATION ACTIVITIES

– December 2012 issue of the monthly journal (Anahtar Magazine) of the Directorate General for Productivity was about RCOP

– Press Release to announce RCOP events

MEDIA RELATIONS

• The tender process of the Project is finalized.

• The contract is planned to be signed by the end of June 2013.

PUBLICITY, INFORMATION and PROMOTION of the RCOP PROJECT

THANK YOU FOR YOUR ATTENTION

Ministry of Science, Industry and TechnologyRegional Competitiveness Programme

Coordination and Implementation Directorate

e-mail: [email protected]

Web address: ipa.sanayi.gov.tr