European union – albania stabilisation and association committee 11 March 2015 table of contents political criteria 3
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5. FINANCIAL ASSISTANCE
The programming of the previous EU financial instrument for the period 2007 – 2013 has been concluded and a new IPA II financial perspective 2014–2020 has started. IPA 2014 Programme was the first programming year under IPA II financing perspective. It started in February 2014 and the final version of the Action Documents was submitted to EC in July 2014. The implementation of the Actions will start after signing the Financing Agreement between the European Commission and the Albanian Government (after May 2015). The total amount of IPA 2014 is 66.7 million Euro (EU contribution). The Government of Albania met a number of key conditions for the decentralised management of IPA component I. The European Commission has adopted on 25 March 2014 a decision on the conferral of management powers for IPA Component I and therefore part of IPA 2013 programme will be implemented under the responsibility of the Albanian Government (decentralized mode) which will therefore show more ownership on its side. In November 2014 the first decentralized Financing Agreement has been signed. In this regard, on 9 February 2015, an introductory meeting was held between NIPAC, the beneficiaries of the six decentralised projects and structures and authorities established in order to discuss the obligations that arise for all parties under decentralized management. The reporting requirements described in the Manual for Monitoring and Evaluation of IPA I were presented and explained. The first information about the status of implementation of each project should be submitted to NIPAC on 5 May 2015. With regard to IPA projects implemented under centralized management, NIPAC is following up the problematic ones. The number of problematic projects has been reduced to two currently, compared to 12 of last year; Meanwhile, there are projects that need to be carefully monitored. In the frame of strengthening collaboration and improving monitoring, NIPAC and the EUD have agreed to exchange data about projects’ implementation every quarter. NIPAC will receive financial data about the status of current disbursements by EUD and will submit to EUD data about the use of co-financing and VAT fund for all ongoing projects. With regard to IPA Cross Border Cooperation (CBC), the Ministry of European Integration, Operating Structure for the CBC programs, has continued its work for the preparation of programming of the new CBC Programmes under the new financial perspective IPA 2014 – 2020. The European Commission has adopted the following programmes in the respective dates: Montenegro – Albania on 10 December 2014; Albania – Kosovo on 11 December 2014; FYROM – Albania on 11 December 2014. After the approval of these documents the Operating Structure has continued the work for drafting the Framework Agreement, Bilateral Agreement and the establishment of Joint Monitoring Committees, for the respective programmes. Several technical meetings were organised, for these purpose, between Operating Structures, with the participation of the European Delegation. As regards to the CBC Programmes with Member States, the draft documents of Greece-Albania, ADRION, MED and Balkan – Mediterranean programmes were send to the Commission for approval. Regarding Italy – Albania-Montenegro programme, the drafting process is ongoing. The Monitoring and Evaluation Sector for CBC) in collaboration with EUD has monitored all IPA CBC projects that are being implemented in the framework of the Programmes with Greece, Republic of Macedonia and Montenegro. Meanwhile the IPA CBC Programme with Kosovo will be monitored during the first quarter of 2015. Moreover, MEI has followed the problematic issues of the CBC projects and has acted as intermediary with the concerned institution for their resolution.
Annual Programme IPA 2015 in Albania is now entering a very crucial phase and, in the meantime, Albania is starting in parallel efforts for programming the IPA 2016. Albania has taken note that the current approach of the European Union on the allocation of financial assistance has changed entirely under IPA II perspective through introducing the novelty of sector budget support and avoidance of stand-alone projects, having as a pre-condition the existence of a sector strategy. Furthermore, another novelty we have taken note is that the priorities for funding from IPA National Programmes are outlined by the National IPA Coordinator (NIPAC) in close consultation with the European Commission services. In Albania’s case, these priorities are approved in advance also by the Strategic Planning Committee. Below you may find updated information related to the above mentioned processes. IPA 2015 After intensive consultations with the European Commission and EU Delegation services, it was concluded that the two sectors ready to receive sector support from IPA 2015 are: i) the Public Administration Reform and ii) the Employment Sector. The primary reason for selecting these two sectors is related to their already finished (or almost finished) and budgeted sector strategies. More specifically, support for the Public Administration Reform derives from the support provided to this sector from IPA 2014 and will also address “service delivery” (integrated services for citizens). A special attention has been given to the strategic framework for Public Administration reform, the implementation of territorial reform, the improvement of Department of Public Administration (DoPA) capacities, the improvement of legislative and policy making process, better management of human resources based on meritocracy, the improvement of services offered to the citizens, as well as fighting corruption in the Public Administration. The assistance for this sector is expected to be delivered through sector budget support which from the ongoing communication has been estimated around 30 million Euro (indicative). Assistance for the Employment Sector is also envisaged to be provided through Sector Budget Support reaching the value of around 30 million Euro (indicative). This support will be fully consistent with the National Strategy on Employment and Skills (NSES), which has as its primary objective the promotion of employment and skills opportunities for Albanian citizens. The assistance will mostly focus on promoting labour market participation and social inclusion, improving the quality and effectiveness of employment services, increased capacity for the implementation of NSES, quality improvement and extension of vocational education, etc. In this context, the staff of the Minister of Innovation and Public Administration, as well as the staff of the Ministry of Social Welfare and Youth, in close cooperation with the EU Delegation in Tirana and the Ministry of European Integration, finalized on 23 January 2015 the first draft of Sector Planning Documents-SPDs for the two sectors mentioned above, respectively. During February 2015 the EC structures made relevant suggestions /comments to SPDs, which will be considered again by the Albanian side in order to reflect the changes. Officially the stance of the Commission on the SPDs will be provided after the meeting of the Financial Assistance Steering Committee to be held on 23 March 2015. Then, the EU Delegation in cooperation with the Albanian structures will develop within May 2015 the Action Document (Sector Reform Contract) on Sector Budget Support for Public Administration Sector and that of Employment. It is also foreseen establishment of the “EU Integration Facility II”. This intervention follows the “EU Integration Facility” programmed under the IPA 2014 and mainly will address the needs of the Albanian institutions for technical assistance projects, drafting of feasibility studies, preparation of designs for various projects, master plans, twinning projects, internship for employees in the administrations of EU countries, etc (detailed components are still to be defined). IPA 2015 will also include an Action Document dedicated entirely to the extension of PAMECA project, including technical assistance as well as investments in equipment for the Police and Prosecution Office. The Albanian Government aims that assistance should be granted mainly for investments in equipment and only a small part to go for technical assistance. Meanwhile, the Ministry of Internal Affairs in cooperation with General Prosecution Office is performing a needs analysis. In addition, the “Support for the Albanian institutions to participate in Union Programs” will continue under the IPA 2015. This support comes in addition to the support planned under IPA 2014 for participation in European programmes and will cover the cost of the entry ticket for 2016. The Action Documents for the last three interventions will be developed during March – May 2015. IPA 2016 Being that EU financial assistance will be implemented through budget support, Albanian institutions must adopt their sector strategies (including their priority sectors for support by IPA) prior to IPA 2016 programming. Drafting of Sector Planning Documents (SPD) for IPA 2016 is expected to be finalized by June 2015. Since budget support is conditional on the adoption of these strategies by Albanian institutions, NIPAC has made this clear to relevant institutions and encouraged them to advance in drafting the strategies. In view of the above, NIPAC has asked for prompt adoption of the national strategy on integrated water management, because it is one of the sectors to receive budget support under IPA 2016. Equally important is the adoption of the justice reform strategy which is a government priority and is expected to be part of the IPA 2016 budget support. If it will be impossible to have this strategy adopted by June 2015, budget support will be requested only for Home Affairs (State Police and General Prosecution Office). Other sectors assumed to be supported by IPA 2016 are Transport and Agriculture. In parallel to strategy drafting, MEI has instructed the relevant institutions to start completing the SPDs; they will be constantly assisted by MEI experts who will deliver tailored-made training to institutions, enabled by technical assistance. Based on the EC Regulation no. 231/2014, a new Framework Agreement between European Commission and Albanian government has been approved by the Council of Ministers Decision No 98 of 4.02.2015 but it still yet under the ratification process by the Parliament. The ratification process is expected to be concluded within April 2015. In the framework of the programming of IPA multi-country for 2015, Ministry of European Integration has received the draft fiches of the programme and after the consultations with beneficiary institutions has made the necessary comments and has submitted to EC. As regards the Western Balkans Investment Framework (WBIF), Albania submitted on 20 February 2015, two applications for the 13th Round. Both applications are focused to the transport sector, more specifically to the railway sub-sector:
Based on the new WBIF Methodology, Albania is taking all the necessary measures to establish a National Investment Committee by July 2015. The New WBIF Methodology envisions the creation of a Single Project Pipeline, and single sector project pipelines for line ministries, for each WBIF beneficiary country through a clear and transparent prioritization process; finalised in a specific and unique framework. IPA Cross Border Cooperation With regard to IPA Cross Border Cooperation (CBC), the Ministry of European Integration, Operating Structure for the CBC programs, has continued its work for the preparation of programming of the new CBC Programmes under the new financial perspective IPA 2014 – 2020. The European Commission has adopted the following programmes in the respective dates: Montenegro – Albania on 10 December 2014; Albania – Kosovo on 11 December 2014; FYROM – Albania on 11 December 2014. After the approval of these documents the Operating Structure has continued the work for drafting the Framework Agreement, Bilateral Agreement and the establishment of Joint Monitoring Committees, for the respective programmes. Several technical meetings were organised, for these purpose, between Operating Structures, with the participation of the European Delegation. As regards to the CBC Programmes with Member States, the draft documents of Greece-Albania, ADRION, MED and Balkan-Mediterranean programmes were send to the Commission for approval. Regarding Italy-Albania-Montenegro programme, the drafting process is ongoing. |