Montenegro May 20-22,2008

Agricultural Pre Accession and Accession Programs of

the European Union

Krassimir Kiriakov - Agribusiness Consultant

Agriculture under the CAP

Investment Subsidies

Direct Payments

Rural Development

Regional Experience

SAPARD – Romania, Bulgaria 2001-2006

IPARD – Macedonia

Program for Rural Development 2007-2012

Program Goals

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

Example: SAPARDSubsidy: 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

Purchase of land; Purchase of existing buildings; Costs for taxes, fees and imported duties

which can be recovered, returned or compensated;

Investment Support

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 Support

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

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.

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

Procedures

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

Procedures

Procedures

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

Procedures

4. Examination on site.

Procedures

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

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

Procedures

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

Procedures

4. Examination on site.

Procedures

Procedures

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

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

Procedures

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

Procedures

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

Procedures

Implementation of the project!!!

Request for payment

After the approved investment is completed.

The candidate submits a Request for payment.

How to prepare and submit the Request for payment?

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 payment?

Detailed description of the expenses. Supporting documents - invoices,

certificates and insurance policies.

How to prepare and submit the Request for payment?

Double examination of the documents for compliance and eligibility.

Identification number.

How the approval of the requests for payment is performed?

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 performed?

Documents and on site check up are performed.

Calculation of the eligible investment costs.

Authorization of payment .

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

What conditions should the recipients meet after the

completion of the investment?

Follow up control of the investments

Regular check ups and examinations.

Follow up control of the investments

Authorized Check up Bodies:European Commission.European Chamber of Accounts.Certifying Body. Agency personnel.

The Role Of the Consultants

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 Consultants

Business plan preparation according to the requirements of program

Assistance for issuance and providing the necessary documents for program application

The Role of The Consultants

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.