REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME 9 TH SECTORAL MONITORING COMMITTEE MEETING 22 November 2011 – Ankara

REGIONAL COMPETITIVENESS REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMMEOPERATIONAL PROGRAMME

99THTH SECTORAL MONITORING COMMITTEE SECTORAL MONITORING COMMITTEE MEETINGMEETING

22 November 2011 – Ankara

1.Opening statements – by the Head of the Operating Structure, and by the Commission (HoS + EC)2.Approval of the Minutes of the last meeting and the agenda of the Meeting (HoS + EC)3.Information on the activities of the Audit Authority in the preparation of the Annual Audit Activity Report for the RCOP (Audit Authority)4.Information on programming (OS)- 1st project package- 2nd project package- 3rd project package (OS+EIF)- 4th project package5.Information on implementation (OS)- Tendering and contracting- Implementation- Absorption (n+3), procurement plans and disbursement forecasts6. Information on technical assistance and communication activities (OS)7. Information on monitoring and evaluation activities (OS)- Monitoring Report and Monitoring Sheets - Interim evaluation (OS + Strategic Coordinator)8.Information on preparations for Accreditation of Finance and Contracts Unit in RCP CID and conferral of management audit follow-up of the DG REGIO (OS+EC)9. Information on recent administrative reorganisation and new institutional set-up of RCP-CID (OS+ NAO) 10. Information on the revision and extension of the Operational Program for years 2012/2013 (OS +EC+ Strategic Coordinator)11. Indicative date for the next Sectoral Monitoring Committee (HoS + EC) 12. AOB

Draft AgendaFor the 9th Sectoral Monitoring Committee Meeting

For the Regional Competitiveness Operational Programme in Turkey(22 November 2011, 09:30)

INFORMATION ON INFORMATION ON PROGRAMMPROGRAMMIINGNG

- - 1st project package1st project package- - 2nd project package2nd project package- - 3rd project package3rd project package- - 4th project package4th project package

SSTATE OF PLAY TATE OF PLAY IN FIRST PROJECT IN FIRST PROJECT PACKAGEPACKAGE

End Recipients of AssistanceEnd Recipients of Assistance

1st Package of Project

TOTAL BUDGET: 99.402.500 €

1st Package of 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 Under Assessment

SSTATE OF PLAY TATE OF PLAY IIN SECOND N SECOND PROJECT PACKAGE PROJECT PACKAGE

SECOND PROJECT PACKAGE - STATE OF PLAY

1- Business Development Center2- Big partnership of small enterprises 3- Hazelnut Licensed Warehouse and Spot Exchange4- Strengthening the Infrastructure for Furniture Production5- Tea Research and Application Centre6- My Bee, My Honey, My Honeycomb

Name of Proposal Submission Date Approval Date

26 . 10. 2010 23.11.2010

7- Activation of “Specialty Foods Cluster” in “GAP Region” 8- Sustainable Tourism Development 7- Activation of “Specialty Foods Cluster” in “GAP Region” 8- Sustainable Tourism Development

Location

VanTokat

GiresunKayseri

RizeOrdu

Ş.Urfa – İzmirMardin

Ş.Urfa – İzmirMardin

19.01.201108.02.201119.01.201108.02.2011

Rejected –15.04.2011 03.03.2011

Rejected –15.04.2011 03.03.2011

9- Establishment of Cereals Exchange and Licensed Warehouse 10- Hand-“Made in Hatay” 11- Establishment of a “CuF” for Industrial Forestry Products 12- Impr. of the Shared Industrial Infr. of the Pistachio Pros.Sector 13- Increasing Competitiveness of Middle Black Sea Region (TR83) 14- Establishment of a CuF for Furniture and Mechanics

Ş.UrfaHatay

KastamonuSiirt

SamsunAmasya

01.03.2011

04.05.201113.06.201118.04.201118.06.201103.11.201103.11.2011

17- Natural Stone Manufacturing and Marketing Support Centre

Gaziantep 13.05.2011 n/a

Budget Total : 135.122.381 €

15- Regional Industrial Collaboration in Cotton Fibre Manufacturing Laboratory Diyarbakır 13.05.2011 18.07.2011

16- Samsun Metals Metrology and Calibration Laboratory Samsun 08.06.2011 03.11.2011

18- Regional Industrial Design and Modelling Centre

Bayburt 20.04.2011 04.11.2011

SECOND PROJECT PACKAGE – PLANNING

19- Enterprise Development Center20- Karatekin University – SETEM21- Marble Production Common Use Facility 22- FIKAP23- Red Pepper Cluster Initiative24- Enterprise Development Center25- Investment Promotion Center

19- Enterprise Development Center20- Karatekin University – SETEM21- Marble Production Common Use Facility 22- FIKAP23- Red Pepper Cluster Initiative24- Enterprise Development Center25- Investment Promotion Center

Name of Proposal Estimated Submission Date

First half of 2012First half of 2012

Location

OsmaniyeÇankırıAmasyaGiresunK.Maraş

Sorgun – YozgatYozgat

OsmaniyeÇankırıAmasyaGiresunK.Maraş

Sorgun – YozgatYozgat

26- Enter prise Development Center27- Atatürk University – Technology Oriented Support Center28- Apricot Valley and Green Energy Storage Facility29 -Whey Powder Production Facility30- Yeniçam Shipyard CuF31- Enter prise Development Center

26- Enter prise Development Center27- Atatürk University – Technology Oriented Support Center28- Apricot Valley and Green Energy Storage Facility29 -Whey Powder Production Facility30- Yeniçam Shipyard CuF31- Enter prise Development Center

ElazığErzurumMalatyaTrabzonTrabzonK.Maraş

ElazığErzurumMalatyaTrabzonTrabzonK.Maraş

32- Winter Tourism Center33- Enterprenurship Consultancy Center34- Milk Processing CuF35- Olive oil CuF36 –Mount Pamuk Highland Tourism37- In the spring in Van38- Kommagene – Nemrut Tourism Development39- İshakpaşa Palace Tourism Promotion Project 40- Enterpreneurship Consultancy Center41- Aydınlar Tourism Promotion Project42 - Increasing the Regional Competitiveness in Kars, Ağrı, Ardahan and Iğdır

32- Winter Tourism Center33- Enterprenurship Consultancy Center34- Milk Processing CuF35- Olive oil CuF36 –Mount Pamuk Highland Tourism37- In the spring in Van38- Kommagene – Nemrut Tourism Development39- İshakpaşa Palace Tourism Promotion Project 40- Enterpreneurship Consultancy Center41- Aydınlar Tourism Promotion Project42 - Increasing the Regional Competitiveness in Kars, Ağrı, Ardahan and Iğdır

ArdahanBafra – Samsun

KarsG.Antep

IğdırVan – Gevaş

AdıyamanAğrıBitlisSiirt

Kars, Ağrı, Ardahan, Iğdır

ArdahanBafra – Samsun

KarsG.Antep

IğdırVan – Gevaş

AdıyamanAğrıBitlisSiirt

Kars, Ağrı, Ardahan, Iğdır

Budget – 149.877.619 € (est.)

SSTATE OF PLAY TATE OF PLAY IIN N THIRDTHIRDPROJECT PACKAGE PROJECT PACKAGE

THIRD PROJECT PACKAGE - STATE OF PLAY

Total Volume: ~ EUR 150 million

Total Number of Loans: >2,700

Total Number of SMEs: 2,500

2011 Q3 Results

Credit Volume Target

30% 70%

- 100,000,000 200,000,000 300,000,000 400,000,000 500,000,000

• Portfolio build-up at 30% • Non-linear• Exponential once lending starts

• Number of SMEs reached already hit the target • Indicates smaller loan size

Number of SMEs Target

100%

0 500 1000 1500 2000 2500

TR-A1 Erzurum, Erzincan, Bayburt

4% TR-B1 Malatya, Elazig, Bingol, Tunceli

6%

TR-B2 Van, Mus, Bitlis, Hakkari

4%

TR-C1 Gaziantep, Adiyaman, Kil is

9%

TR-C2 Sanliurfa, Diyarbakir

7%

TR-C3 Mardin, Batman, Sirnak, Siirt

9%TR-63 Hatay,

Kahramanmaras, Osmaniye

12%

TR-72 Kayseri, Sivas, Yozgat

11%

TR-82 Kastamonu, Cankiri, Sinop

3%

TR-83 Samsun, Tokat, Corum, Amasya

19%

TR-90 Trabzon, Ordu, Giresun, Rize, Artvin,

Gumushane10%

TR-A2 Agri, Kars, Igdir, Ardahan

6%

Number of loans breakdown (by the end of Q2)Chart evolving as portfolio grows

Regional Breakdown of Loans

PROGRESS PROGRESS IN 1ST 2ND AND 3RD PACKAGEIN 1ST 2ND AND 3RD PACKAGE

PROGRESS PROGRESS BY PRIORITY AXES IN 1ST 2ND AND BY PRIORITY AXES IN 1ST 2ND AND 3RD PACKAGE3RD PACKAGE

Priority 1: Improvement of Business Environment (300.697.654€)

Priority 2: Strengthening of Enterprise Capacity and Foster Entrepreneurship (37.488.240€)

PROGRESS PROGRESS BY PRIORITY AXES IN 1ST 2ND AND BY PRIORITY AXES IN 1ST 2ND AND 3RD PACKAGE3RD PACKAGE

SSTATE OF PLAY TATE OF PLAY IIN N FOURTHFOURTHPROJECT PACKAGE PROJECT PACKAGE

FOURTHFOURTHPROJECT PACKAGEPROJECT PACKAGE ACTIVITIES TIMELINE ACTIVITIES TIMELINE

TOTAL BUDGET: ~ 761.570.011,54 EUR

PROJECT IDEAS BY APPLICANTSPROJECT IDEAS BY APPLICANTS

PROJECT IDEAS BY MEASURESPROJECT IDEAS BY MEASURES

TOTAL BUDGET: ~ 761.570.011,54 EUR

Planned Activities to Achive According to Our Timeline •Interviews with instutitons – 5 Dec. – 23 Dec. 2011•Identification of the Operations – 26 – 30 Dec. 2011•Finalization of the OISs with the assisstance of TA Project – Mid 2012 at the latest

4th Package of Projects

INFORMATION ON IINFORMATION ON IMPLEMENTATMPLEMENTATIIONON-Tendering and contractingTendering and contracting-ImplementationImplementation- - Absorption (n+3), procurement plans and disbursement Absorption (n+3), procurement plans and disbursement forecastsforecasts

Total Projects Total Projects Under Coordination of RCP – CID Under Coordination of RCP – CID

approved OISs (28 project)

Processing at the ERA/OS

at the CFCU

at the EUD

Under shortlistin

g

Under evaluatio

n

Under contract

prep.Awarded total

number of contracts 62 12 2 3 3 3 9 94

budget 122.010.82821.151.

3032.598.91

04.432.036

21.193.853

1.186.500

67.410.600

239.984.030

Distribution of Contracts

Distribution of Contracts

ALLOCATED BUDGET FOR RCOP 2007-2011 PROGRAMMING PERIOD

Year EU Contribution (EUR)

National Contribution(EUR)

Total EUR

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

TOTAL 299.650.000 52.879.412 352.529.412

DISBURSEMENT FORECAST AND N+3 GAP

*Figures also include the advance payment which is equal to 64.275.000 € .

Disbursement Forecast (EU Contribution) -October

2010 2011 2012 2013 2014 2015 2016 2017 TOTAL

1st PP 59,577 4,973,232 22,399,182 30,358,501 14,023,643 8,491,951 1,840,231 82,146,317

2nd PP 0 0 3,416,285 82,850,015 78,755,908 67,045,944 1,631,848 233,700,000

3rd PP 27,200,000 13,855,000 0 0 0 0 0 41,055,000

4rd PP 0 0 0 0 0 50,000,000 50,000,000 50,000,000 150,000,000

TOTAL 27,259,577 18,828,232 25,815,467 113,208,516 92,779,551 125,537,895 53,472,079 50.000.000 506,901,317

TOTAL (cumulative) 27,259,577 46,087,809 71,903,276 185,111,792 277,891,343 403,429,238 456,901,317 506,901,317 506,901,317

N+3 Expenditure Requirements (per year)

41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 299,650,000

Pre-finance* 64,275,000 64,275,000 64,275,000

Expenditure paid and declared*(cumulative)

-22,375,000 21,125,000 75,925,000 147,355,000 299,650,000 299,650,000 299,650,000 299,650,000 299,650,000

N+3 Gap 49,634,577 24,962,809 -4,021,724 37,756,792 -21,758,657 103,779,238 157,251,317 207,251,317 207,251,317

DISBURSEMENT FORECAST AND N+3 GAP

INFORMATION ON INFORMATION ON TECHNTECHNIICAL ASSCAL ASSIISTANCE STANCE AND COMMUNAND COMMUNIICATCATIION ACTON ACTIIVVIITTIIESES

‘Technical Assistance on Institutional Building for the

Implementation of RCOP’ Operation

Support to the Accreditation Process FCDFollow-up on the findings of the Compliance

AuditAccreditation package revisedPreparation of the RCP-CID staff for

Verification Audit

Main activities June-November

Training and capacity building Capacity building RCP-CID and

Internal Audit Unit: IPA Programme Management

training for new staff (12-19 September)

Training and coaching FCD on payments procedures

Training on TA contract management and financial management topics

On the job support to Internal Audit Unit


• Capacity building end-recipients:– TNA end-recipients report finalised– Training programme designed– Recruitment of trainers

Support to project developmentSupport to submit concept-notes for 4th

packageSelection system for concept-notes for new

projects preparedFirst screening of submitted concept-notes


Preparation of Tender DossiersDesign team recruited and ready to work:

Start of preparation of Tender Dossier for Kastamonu Operation: ”Establishment of a Common-use Processing Facility for Industrial Forestry Products”


Study tour to Croatia • Study Tour to Croatia 16 staff members of FCD,

16 – 22 October 2011,5 working days

programme

• Internships to Croatia3 staff members of FCD,

16 October- 12 November, 20 working days programme


Planned support to the Accreditation Process FCDFollow-up on the findings of the Verification

AuditPreparation of FCD staff to take over conferral

of management from CFCU

Main activities planned for November 2011- May 2012

Planned training and capacity building 6 trainings for RCP-CID and study

tours and internships: Leadership Training Evaluation management, monitoring

& progress reporting, on the spot checks (December 2011)

Quality management & Risk Mangement, and Internal Control systems (January 2012)

Project generation and Pipeline management (January 2012)

IPA Major Projects and Feasibility and Cost Benefit Analysis (February 2012)

Procedures Manual Implementation (March 2012)

Capacity building FCD: Procurement Procedures: 2

workshops planned Financial Management: 3 workshops

planned

Main activities planned for November 2011- May 2012

• Capacity building end-recipients:

– Planning depending on approval OISs

– OIS Development training to 4th project package potential end recipients

– Further development of Concept-notes into OISs (4th Package)

PREPARATPREPARATIIONS FOR ACCREDONS FOR ACCREDIITATTATIION OF ON OF FFIINANCE AND CONTRACTS UNNANCE AND CONTRACTS UNIIT T IINN RCPRCP-- CID CID

AND AND CONFERRAL OF MANAGEMENT AUDCONFERRAL OF MANAGEMENT AUDIIT T

FOLLOW-UP OF THE DG REGIOFOLLOW-UP OF THE DG REGIO

Gradual Takeover of the Delegated Tasks

Current Accreditation Process

Accreditation Application

Accreditation Application to NAO

26th of April 2011

After the date of 26th of April 2011, substantial changes were occurred.

• The organizational structure of the Centre was revised on 13rd May 2011• The Decree Law changed the Organizational Structure and Responsibilities of the Ministry on 8th June 2011• Ministerial Consent changed the position of the Center to Directorate on 20th September 2011

Renewal of Accreditation Application

21st of September 2011

AREA FINDING CURRENT STATUS

1.Legal Basis Within the scope of restructuring of the Ministries, the new position of the center and the reporting line between the Head of the IPA Unit and the HOS should be clearly defined .

•Decree Law on restructuring the Ministries.•Ministerial Consent.•Prime Ministry Circular.•Decree Law 666, Salary policy of the Ministry.

2.Procedure Manuals, Agreements etc.

The establishment of the Ministry of Science, Industry and Technology will necessitate an amendment in related documents.

•The Procedure Manuals, Agreements were revised and the accreditation application was ensured with these revisions.

3.Accounting Procedures

The specification of the accounting system should be defined and training should be provided to the related staff.

•Computerized Accounting System (PRESTO) was purchased from LIKOM Company and installed.•User trainings were given to related staff.•Short Term expert Mrs. Nalan AKDOGAN was recruited and chart of account and manual (Chapter J, annexes) were revised.•On the job trainings are on going process

Compliance Audit Findings


4.Management Information System

The Management Information System to be installed should be tailored within a specific time schedule to provide the management information reports that are defined by the management of RCP-CID.

ToR Document of MIS was prepared and sent to CFCU. Until the MIS becomes fully operational, Presto Program and IMIS will be used as an interim solution.

5.Internal Auditors Internal Auditors should be trained on reviewing identification of sensitive posts and assessing the actions taken to mitigate risks.

The Internal Auditor was coached by a short term expert recruited in the context of TA Project for his audit activites between the dates of 14-18 November 2011. As a second part of this TA mission; it is planned to provide another training and coaching session in the begining of 2012, at the latest.



6.Budgetary procedures to ensure availability of funds

Implementing Agreement between the NAO and the OS should provide the procedures for Bridging Finance.

•Procedure for Bridging Finance was discussed with NAO/NF in the meetings which were organized in 14th June 2011 and 2nd November 2011.•Necessary amendments were made in NF Manuals according to the Bridge Finance Procedure.•A special item was added to the Implementing Agreement which will be signed with RCP-CID and NF after the conferral of management decision.


THANK YOU FOR YOUR ATTENTION

Ministry of Science, Industry and TechnologyRegional Competitiveness Programme

Coordination and Implementation Directorate

e-mail: [email protected] Web adress: ipaweb.sanayi.gov.tr