The Instrument for Pre-Accession Assistance (IPA) in Montenegro

Podgorica, December 2011

Pre-Accession StrategyMontenegro is preparing for future membership based on:

• European Partnership for Montenegro (adopted by the Council on 22 January 2007)

• Pre-Accession Assistance (IPA Framework agreement signed between the EC and Montenegro on 15 November 2007)

• Stabilisation and Association Agreement (Entered into force on 1 May 2010)

What is IPA?

• Financial instrument for assisting the pre-accession process

• IPA is designed with five components

• IPA is planned by the Multi-annual Indicative Financial Framework (MIFF)

• The MIFF contains the Commission's indicative financial allocations by country and by component

IPA Components:

1. Transition Assistance and Institution Building

2. Cross-border cooperation

3. Regional Development

4. Human Resources Development

5. Rural Development

YEAR 2007 2008 2009 2010 2011 2012 2013 TOTAL

Transition Assistance and Institution Building

27,490, 504 28,112,552 28,632,179 29,238,823 29,843,599 16,346,471 5,296,035 164,960,163

Cross-border Co-operation 3,909,496 4,487,448 4,667,821 4,282,690 4,310,344 4,338,551 4,418,687 30,415,037

Regional Development 0 0 0 0 0 8,000,000 15,200,000 23,200,000

Human Resources Development

0 0 0 0 0 2,800,000 2,900,000 5,700,000

Rural Development 0 0 0 0 3,300,000 7,600,000 10,900,000

Total 31,400,000 32,600,000 33,300,000 33,521,513 34,153,943 34,785,022 35,414,722 235,175,200

Financial allocations for Montenegro by component (€)

EU Financial Assistance to Montenegro

• EUR 235 million for IPA projects 2007 - 2013

• More than 200 projects managed under IPA• EUR 58.2 million were paid under IPA 2007 – 2010 Components I and II (Status: 12 Dec 2011)

• EUR 95.4 million were contracted under IPA 2007 – 2010 Component I and II (Status: 12 Dec 2011)

Status of IPA Component I

Programme year Allocation € % Contracted by December 12 2011

% Paid by December 12 2011

No. of Contracts till December 12 2011

IPA 2007 23,870,504 95.76% 84.94% 45

IPA 2008 26,800,000 95.92% 66.04% 36

IPA 2009 27,232,179 86.41% 43.51% 47

IPA 2009 add. 1,200,000 98.53% 56.98% 3

IPA 2010 28,638,823 59.12% 14.78% 24

TOTAL: 107,741,506 83.73% 50.81% 151

Status of IPA Component II

Programme year Allocation € % Contracted byDecember 12 2012

% Paid by December12 2012

No. of Contractstill December 122012

CBC 2007 2,300,000 97.02% 70.24% 28

Trans-nationalprogramme 2007 883,624 94.19% 75.42% 9

CBC 2008 2,300,000 56.38% 37.01% 12

Trans-nationalprogramme 2008 947,296 93.96% 41.22% 8

Trans-nationalprogramme 2009 1,012,242 10.00% 0.00% 1

TOTAL: 7,443,162 70.54% 47.34% 57

Programming of IPA The Multi-annual Indicative Planning Document (MIPD) 2011-2013 identifies EU priorities for assistance:

• Justice and Home Affairs• Public administration reform• Environment and Climate Change (investment in IPA III)• Transport (investment in IPA III)• Social Development (IPA IV)• Agriculture and rural development (IPA V)• EU acquis related activities

Implementation of IPA• Preparation (ToR, TS, BoQ, beneficiaries)

• Tendering phase - receiving offers

• Evaluation of offers - selection of best bidders

• Contracting - signature of contracts

• Implementation of projects

• Monitoring

• Evaluation - Audit

Overview of acquis chapters and ongoing projects – IPA projects in 23 of 33 chapters

[x] Chapter 1: Free movement of goods Chapter 2: Freedom of movement of workers Chapter 3: Right of establishment and freedom to provide services Chapter 4: Free movement of capital[x] Chapter 5: Public procurement Chapter 6: Company law[x] Chapter 7: Intellectual property law Chapter 8: Competition Chapter 9: Financial Services[x] Chapter 10: Information society and media

Overview of acquis chapters and ongoing projects:

[x] Chapter 11: Agriculture and rural development[x] Chapter 12: Food safety, veterinary and phytosanitary policy[x] Chapter 13: Fisheries[x] Chapter 14: Transport policy[x] Chapter 15: Energy[x] Chapter 16: Taxation Chapter 17: Economic and monetary policy[x] Chapter 18: Statistics[x] Chapter 19: Social policy and employment[x] Chapter 20: Enterprise and industrial policy[x] Chapter 21: Trans European Networks

Overview of acquis chapters and ongoing projects:

[x] Chapter 22: Regional policy and coordination of structural instruments[x] Chapter 23: Judiciary and fundamental rights[x] Chapter 24: Justice, freedom and security Chapter 25: Science and research[x] Chapter 26: Education and Culture[x] Chapter 27: Environment[x] Chapter 28: Consumer and health protection[x] Chapter 29: Customs union Chapter 30: External Relations[x] Chapter 31: Foreign, Security and Defence Policy[x] Chapter 32: Financial control Chapter 33: Financial and budgetary provisions

0

5

10

15

20

25

Transport Environment Justice,Freedom and

Security

Institutions Social Policyand

Employment

Agricultureand Rural

Development

Food Safety FreeMovement of

Goods

InformationSociety and

Media

Civil Society Aid toRefugees and

IDPs

Other

Allocation of IPA I (2007-2010) funds by sectors (%)

0

5

10

15

20

25

30

35

40

45

Ministries Municipalities PoliceDirectorate

CSOs VeterinaryDirectorate

MONSTAT Bureau forCare of

Refugees

BroadcastingCompany

RTCG PublicProcurement

TaxAdministration

Other

Beneficiaries of IPA I (2007-2010) (%)

Allocation of IPA funds to Municipalities (%)

0

5

10

15

20

25

30

PV PG NK DG AN Berane Pluzine BP Savnik RO KL MO Plav UL CT KO

Institutional beneficiaries of IPA I (2007-2010) (%)

0

5

10

15

20

25

30

35

Ministry ofTransport

and MaritimeAffairs

Ministry ofEconomy

Ministry ofFinance

Ministry ofSustainableDevelopmentand Tourism

Ministry ofInterior and

PublicAdmin.

Ministry ofAgricultureand Rural

Development

Ministry ofHealth

Ministry ofEducationand Sports

Ministry ofLabour and

SocialWelfare

Ministry ofJustice

Ministry ofFA and

EuropeanIntegration

Ministry ofInformation

Society

Ongoing projects IPA I and II (2007-2010)

Beneficiary No. of projects Amount in EUR % of funds % of projects

Ministries and Public Administration 87 76,300,000 74,8 % 49,2 %

Local self-governments 28 19,400,000 19,02 % 15,8 %

NGOs62 6,300,000 6,18 % 35 %

TOTAL 177 102,000,000 100 % 100 %

How many projects ongoing by: