Agricultural Pre Accession and Accession Programs of the European Union
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Agricultural Pre Accession and Accession Programs of the European Union. Montenegro May 20-22,2008. Krassimir Kiriakov - Agribusiness Consultant. Agriculture under the CAP. Investment Subsidies Direct Payments Rural Development. Regional Experience . SAPARD – Romania, Bulgaria 2001-2006

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Agricultural Pre Accession and Accession Programs of the European Union

Montenegro May 20-22,2008

Krassimir Kiriakov - Agribusiness Consultant


Agriculture under the cap
Agriculture under the CAP European Union

  • Investment Subsidies

  • Direct Payments

  • Rural Development


Regional experience
Regional Experience European Union

  • SAPARD – Romania, Bulgaria 2001-2006

  • IPARD – Macedonia

  • Program for Rural Development 2007-2012


Program goals
Program Goals European Union

1. Investments in farms.

2. Improvement of the marketing and processing of agricultural and fish products.

3. Development and diversification of economic activities in the rural areas.


Financial aid under the programs
Financial aid under the programs European Union

Example: SAPARD

  • Subsidy: 50% from the size of the actual realized investment.

  • The subsidy comes from: Free subsidy from the EU (75%) and the national budget (25%).


Investment support
Investment support European Union

  • Purchase of land;

  • Purchase of existing buildings;

  • Costs for taxes, fees and imported duties which can be recovered, returned or compensated;


Investment support1
Investment Support European Union

  • Purchase of second hand machines and equipment;

  • Costs for rent or leasing;

  • Bank fees and expenses associated with guarantees;

  • Operating expenses;

  • Maintenance of fixed tangible assets;


Investment support2
Investment Support European Union

  • Expenses associated with purchase of machines and equipment, delivery of goods and services which are not with EU member countries origin or countries that are in the process of accession to the EU – for example Macedonia, Croatia and Turkey.


Payment agencies
Payment Agencies European Union

  • Detailed written procedures regarding all obligations and examinations;

  • Double control during all examinations;

  • Written reports and control protocols;

  • Unified system for documents archiving;

  • Internal audit procedures.


Procedures European Union

1. Submit the full package of documents in one of the regional offices of the Agency.


Procedures European Union

2. Examination of the required documents and issuing of incoming identification number of the project.


Procedures European Union

3. Examination for compliance with the program criteria for financing.


Procedures European Union

4. Examination on site.


Procedures European Union

1. Receiving the package of documents of the project from the regional offices.


Procedures European Union

2. Examination of the submitted package of documents – availability and verification.


Procedures European Union

3. Examination for compliance with the program criteria for financing.


Procedures European Union

4. Examination on site.


Procedures European Union

5. Analysis of the business plan which is part of the project.


Procedures European Union

6. Evaluation of the projects by the Commission for project selection.


Procedures European Union

7. Approval/rejection of the projects by the Director of the Agency.


Procedures European Union

8. Signing of the Contract between the Agency and the Applicant.



Request for payment
Request for payment European Union

  • After the approved investment is completed.

  • The candidate submits a Request for payment.


How to prepare and submit the request for payment
How to prepare and submit the Request for payment? European Union

  • Description of the expenses incurred.

  • The candidate encloses all the necessary documents enlisted in the Request.

  • The candidate marks off the enclosed documents in the Request for payment.


How to prepare and submit the request for payment1
How to prepare and submit the Request for payment? European Union

  • Detailed description of the expenses.

  • Supporting documents - invoices, certificates and insurance policies.


How to prepare and submit the request for payment2
How to prepare and submit the Request for payment? European Union

  • Double examination of the documents for compliance and eligibility.

  • Identification number.


How the approval of the requests for payment is performed
How the approval of the requests for payment is performed? European Union

  • On site examination.

  • Physical check up of the invested assets – buildings, machines and equipment, animals, etc.


How the approval of the requests for payment is performed1
How the approval of the requests for payment is performed? European Union

  • Documents and on site check up are performed.

  • Calculation of the eligible investment costs.

  • Authorization of payment .


What conditions should the recipients meet after the completion of the investment
What conditions should the recipients meet after the completion of the investment?

  • The assets subject of the subsidy should be used according to the contract between the Agency and the recipients.


Follow up control of the investments
Follow up control of the investments completion of the investment?

  • Regular check ups and examinations.


Follow up control of the investments1
Follow up control of the investments completion of the investment?

Authorized Check up Bodies:

  • European Commission.

  • European Chamber of Accounts.

  • Certifying Body.

  • Agency personnel.


The role of the consultants
The Role Of the Consultants completion of the investment?

  • Provide to-date and on-time information for the requirements and procedures of the program.

  • Advanced analysis of the candidates in accordance with the respective measure requirements.


The role of the consultants1
The Role of The Consultants completion of the investment?

  • Business plan preparation according to the requirements of program

  • Assistance for issuance and providing the necessary documents for program application


The role of the consultants2
The Role of The Consultants completion of the investment?

  • Representation of the candidates in front of the program administration and assistance throughout the whole procedure – from the preparation of the project till the payment of the financial aid.


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