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MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance. MINISTRY OF EUROPEAN AFFAIRS Authority for Coordination of Structural Instruments Coordination of expertise to be received from International Financial Institutions (IFI s )

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MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

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  1. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance MINISTRY OF EUROPEAN AFFAIRS Authority for Coordination of Structural Instruments Coordination of expertise to be received from International Financial Institutions (IFIs) 13thof July 2012

  2. Objective of using the IFIs’expertise To improve the implementation of Structural Funds and preparing the next programming period 2014-2020, based on EC’s recommendation, on October 26th, 2011, the Romanian Government adopted a Memorandum containing proposals to use the expertise of the international financial institutions: • European Investment Bank • European Bank for Reconstruction and Development • World Bank, for areas covering all seven operational programs financed by the SI, the costs will be financed from: • OPTA for horizontal needs • TA Priority Axes for sectoral needs MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  3. Framework of implementation For designing the framework for implementation of IFIs’expertise, it was decided to conclude Memoranda of Understanding with each IFI, the progress on June 30th, 2012, of negotiations of these documents being the following: • Memoranda of Understanding with EIB and World Bank were signed on January 26th, 2012 and entered into force on April 26th and April 30th, 2012. • Memorandum of Understanding with EBRD is under negotiation (the first version was submitted by EBRD on April 6th, and MoEA sent two rounds of comments on April 25th and June 5th - feedback from EBRD is still awaited). Projects will be implemented through service agreements, which will be concluded under the framework of the Memoranda of Understanding, and a coordination mechanism for expertise IFIs was put in place. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  4. Coordination mechanism • Biannual high-level coordination meetings, in the framework of the Inter-ministerial Group for monitoring SI absorption, to which the management of the IFIs will be invited. • If necessary, ad hoc meetings can be organized on specific issues arising in the implementation of the Memoranda. • Given the reimbursement of the expertise from OPTA or TA Priority Axes, operational coordination of IFIs’ expertise will be achieved by ACIS through the Technical Assistance Coordination Committee which meets quarterly – the representatives of the IFIs will be invited to these meetings. • In addition, ACIS will continue to request monthly update of the status on each task. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  5. Using IFIs’ expertise at horizontal level • The horizontal needs have been identified by ACIS after analyzing horizontal problems encountered in SI implementation. In this process, ACIS took into account those recommendations of the functional reviews that have an impact on SI absorption. • Addressing the horizontal needs requires involvement of several institutions with responsibilities in different areas. • It is absolutely necessary to identify the beneficiary of expertise willing to undertake implementation of the tasks. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  6. Horizontal needs– World Bank’s expertise (I) MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  7. Horizontal needs– World Bank’s expertise (II) MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  8. Horizontal needs requiring further discussion for clarification MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  9. Needs for IFIs’ expertise - ROP • MA for ROP was very active in clarifying the needs for expertise thus the areas of collaboration which each IFI have been identified. • Discussions with the World Bank are quite advanced on the terms of reference for projects related growth poles, project selection models, facilitate collaboration between Managing Authorities and Intermediate Bodies, develop a strategy for less developed areas and disadvantaged communities. The next steps are finalizing the terms of reference and drafting and signing the service agreements (the feedback from WB is awaiting from May 7th, 2012). • The areas of cooperation with EBRD have been agreed: elaboration of a strategy for financing and management of the urban public transport and of a strategy regarding the co-financing from structural funds of energy efficiency investments in the public sector 2014-2020. No further development of the cooperation on these tasks has been achieved. It is necessary to start developing the terms of reference. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  10. Needs for IFIs’ expertise – Environment SOP • Cooperation with EIB to support MA for Environment SOP relating to procedures, capacity assessment or training and project implementation support (which must be requested jointly by the Managing Authority and Final Beneficiary) - the development of the terms of reference are quite advanced and the signature of the assignment is foreseen for July 2012. • Cooperation with EBRD was established for support to Intercommunity Development Associations and Regional Operating Companies – waste and water areas. The details relating the expected activities have been submitted by MA for Environment SOP to EBRD and a meeting is planned for the week 2 to 6 July in order to further discuss them. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  11. Needs for IFIs’ expertise –Transport SOP • Cooperation with EIB for the following tasks: • Managerial support to the MA for Transport SOP, mainly by focusing on reviewing the management system and the internal organization - final version of the service agreement is expected from EIB and its signing is foreseen for July 2012. • Management support to the Road Agency for solving bottlenecks in project implementation and coordinating technical assistance procured at project level - terms of reference to be presented to the new general director of the agency. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  12. Needs for IFIs’ expertise – IEC SOP • Cooperation with JASPERS on : • Strengthening the capacity of IB SMEs and exploring different modes of management for the implementation of the programmes for the SMEs sector • Build up monitoring capacity of the MA for ELI project • Identifying strategic opportunities for financing from Structural Instruments on certain economic areas according to the objectives of the Europe 2020 Strategy and to the future cohesion policy • Assistance to identifying national priorities as regards smart specialization in the next national strategy for Research Development and Innovation 2014-2020 Some tasks needs to be clarified: • Propose future project selection models in order to better target sectoral strategies, objectives and indicators • Build up monitoring capacity of the MA for Broadband project • Support the development of competitiveness poles • Cooperation with World Bank on: • Identification of industrial areas with competitiveness advantages at international level – key issues for an industrial policy paper of Romania for 2012-2020 MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  13. Needs for IFIs’ expertise – HRD SOP • Needs for World Bank’s expertise are still under clarification at the level of MA for HRD SOP. The needs aims at developing strategies and analysis in the following areas: state of education in Romania, combating poverty and unemployment, the Roma community, supporting youth and education system. • A proposal was submitted to WB by IB Education for “Analyzing the education system and defining the strategy of development/modernization of education system with Structural Instruments’ support during the period 2012-2020” • All actions aimed at preparing the next programming period, not any task for the current period being agreed by the EC. • It is necessary to clarify the urgent needs and propose them to the World Bank. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  14. Needs for IFIs’ expertise – ADC OP • Needs for World Bank’s expertise have been identified for elaboration of two studies, namely: • Situation of civil servants and contract staff operating in the central and local government, • State of play of competencies' transfer between central and local levels of government - the effects of decentralization/ restructuring of public authorities. • The development of the terms of reference are quite advanced. • All actions aimed at preparing the next programming period, not any task for the current period being agreed by the EC. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  15. Problems encountered – MoU • Rigid internal procedures of IFIs that caused delays in their responses to the comments of the Romanian side (the response of the Romanian authorities was quicker even if there are a lot of institutions involved in this exercise). • Certain sensitive issues such as: Memorandum signed with the Romanian Government and not with Romania, provisions for audit /verification of documents related to projects, subcontracting of services, arbitration, liability, etc. • Lengthy procedure for the entry into force of the Memoranda (endorsement of the Memoranda by the Government, official translation of the documents, publishing in the Romanian Official Journal and notification to the other counterpart through diplomatic channels). • In case of EBRD, very late submission of a draft MoU – April 6th (EBRD did not want to take into consideration the format used by WB or EIB, given the specific internal procedures). MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  16. Problems encountered – Service agreements • An issue that has led to delays in starting the project implementation was the difficulty to agree on a standard format for the service agreement, mainly because of the inflexibility of IFIs to the rigors of the EU and national regulations (e.g. the negotiation with the World Bank took 7 months, a first draft for service agreement is still expected from EBRD). • Regarding the clarification of the needs for expertise/deciding which IFI will provide expertise - major delays have been encountered mainly for HRD SOPs and two horizontal needs (rationalization of public investment and district heating area). • As for the delays registered in elaborating/finalisation of the ToRs- delays have been registered mainly due to the delayed response either from IFIs or from the Romanian authorities, on a case by case basis. MINISTRY OF EUROPEAN AFFAIRS Managing Authority for Operational Programme Technical Assistance

  17. Conclusions

  18. Thank you! Livia Chirita Director Managing Authority for Operational Programme Technical Assistance www.poat.ro Autoritatea de Management Programul Operaţional Asistenţă Tehnică

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