First Joint Consultative Committee Meeting

1. First Joint Consultative Committee Meeting Committee of the Regions Sofia September 16, 2003 arch. Belin Mollov

2. Regional development as a priority of Bulgaria’s economic strategy • Strategic goal: The major strategic goal of the social and economy policy of the Republic of Bulgaria until the end of 2006 is to attain the European Union’s economic, social and administrative standards to a level enabling the country’s membership in the EU. • Mid-term objectives: • Sustainable and balanced economic growth; • Abatement of the disparities between rich and poor people; • Alignment of Bulgaria’s national legislation to Community law arch. Belin Mollov

3. Bulgarian regional development policy • Vision Bulgaria’s regional policy aims to reduce the disparities between the country’s regions in terms of development level and living standards by providing assistance for their structural adjustment, by development of those areas, which are in a process of decline, and by overall social and economic renaissance. arch. Belin Mollov

4. Bulgarian regional development policy Strategic goals: • Attainment of balanced and sustainable development of Bulgaria’s regions; • Ensuring conditions for economic growth and high employment levels on a basis of enhancing the regions’ development potential; • Strengthening economic and social cohesion of regions in the context of Bulgaria’s European integration arch. Belin Mollov

5. Bulgarian regional development policy • Priorities • Finalizing the negotiation process on Chapter 21 “Regional Policy and Coordination of Structural Instruments”; • Ensuring the conditions for balanced development of the country’s regions; • Enhanced the border regions development through trans-border co-operation; • Effective use of EU pre-accession instruments; • Harmonization of the legislative framework with the acquis; • Creating of an information system for regional planning and management based on the Planning regions arch. Belin Mollov

6. Provisional NUTS classification • Bulgaria accepts the provisional NUTS classification, agreed by the National Statistical Institute and EUROSTAT. • The Bulgarian NUTS classification is as follows: • NUTS 2 – planning regions • NUTS 3 – districts • NUTS 4 – municipalities • NUTS 5 – settlements arch. Belin Mollov

7. Planning regions Decree of Council of Ministers establishes six planning regions: • North-Western • North-Central • North-Eastern • South-Western • South-Central • South-Eastern arch. Belin Mollov

8. Districts NUTS 3 28 districts arch. Belin Mollov

9. Municipalities NUTS 4 263 – municipalities arch. Belin Mollov

10. NUTS 5 5336 – settlements arch. Belin Mollov

11. Legislative framework Bulgaria has achieved a high degree of compatibility with the Community policies and actions with regard to: • the rules on competition; • award of public contracts; • environmental protection and improvement; • the elimination of inequalities and the promotion of equality between men and women arch. Belin Mollov

12. Legislative framework The rules on competition: • Law on the Protection of Competition; • The State Aid Act: • Rules on the application of the Law on State Aid; • Rules for the Supervising and Ensuring the State Aid Transparency; • Approval of a Regional Map of State Aid, based on planning regions (NUTS 2 level). Institutions: • Commission on the Protection of Competition; • State Aid Department – Ministry of Finance. arch. Belin Mollov

13. Legislative framework Award of public contracts: • Law on Public Procurement: • Ordinance on Public procurement register Institutions: • “Inspectorate” services at the ministries • Public Internal Financial Control Agency – governmental control • National Audit Office – parliamentary control arch. Belin Mollov

14. Legislative framework Environmental protection and improvement: • Law on Environmental Protection: • A set of regulations • Law on Biodiversity Institutions: • Ministry of Environment and Water • 3 National Parks Directorates • 4 River basin Directorates • Ministry of Agriculture and Forestry • Ministry of Regional development and Public Works arch. Belin Mollov

15. Legislative framework Elimination of inequalities: • Law on Prevention of Discrimination: Institutions: • Ministry of Labor and Social Policy arch. Belin Mollov

16. Legislative framework Multi-annual budget programming: • Organic Budget Law; • Law on Public Internal Financial control; • Law on National Audit Office Institutions: • Ministry of Finance arch. Belin Mollov

17. Bodies or authorities responsible for the preparation and implementation of Structural Funds and the Cohesion Fund Programming of the structural funds assistance: • The Agency for Economic Analysis and Forecasts Management of Structural funds assistance: • The Management of EU Funds Directorate in the MF • The programming of Regional Development General Directorate in the MRDPW • The Coordination and Management of Programmes and Projects Directorate in the ME • The Pre-accession Funds and Internat. Programmes and Projects Directorate in the MLSP • The rural Development Directorate in the MAF Paying authority: • The National Fund directorate Management and co-ordination of Cohesion Fund operations: • The Management of EU Funds Directorate in the MF • The Transport Policy, Infrastructure and Construction Directorate in the MTC • Road Executive Agency under the MRDPW • The EU Funds for the Environment Directorate in the MEW Paying authority: • The National Fund directorate arch. Belin Mollov

18. Financial control Public Internal financial Control Agency • Internal audit of the Managing Authorities, the Paying Authorities and Implementing bodies; • Internal audit of the activities relating to Structural Funds and Cohesion Fund. National Audit Office • Independent external audit • Joint audit with the European Court of Auditors arch. Belin Mollov

19. Administrative capacity The Bulgarian Government priorities: • Modernizing the state administration in line with the principles of the rule of law, market economy and respect for fundamental human rights; • Strengthening the capacity for planning, co-ordination and implementation of pre-accession processes; • Strengthening the capacity of the state administration to prepare for the EU Membership and for effective administration after EU accession. arch. Belin Mollov

20. Administrative capacity Strategy for Modernization of the State Administration: • Legislative, functional, and organizational optimization of the administrative structures; • Strengthening the capacity for strategic planning and developing national policies; • Improving consultative mechanisms among the economic and social partners and civil siciety basis for the elaboration of national policies and the resulting from them legislation. arch. Belin Mollov

21. Administrative capacity The activities concerning creation and strengthening the administrative capacity: • Creation of and strengthening the operational structures for managing the EU Funds in line with the EU Standards, the member countries “good practices” and the established Bulgarian administrative traditions; • Management of human resources – needs analysis, training, elaboration of specific selection criteria; • Elaboration of systems, procedures, guidelines, manuals and other instruments aiming at promoting good conditions for participation of all concerned persons and structures at all levels through the entire programme cycle; • The optimisation of the experience gained from the management of the pre-accession instruments and creation of environment that will help lessons to be derived from the existing administrative practices arch. Belin Mollov

22. Programming capacity • The Strategy for the Participation of the Republic of Bulgaria in the EU Structural funds and Cohesion Fund • National Economic Development Plan – 2000 – 2006 • Operational programmes and corresponding implementation structures • National Development Plan – 2007 – 2013 • Agency for Economic Analyses and Forecasts arch. Belin Mollov

23. Programming process The major stages of the process are as follows: • The Council of Ministers adopts a working programme for preparation of a Development Plan; • The Minister of Finance co-ordinates the implementation of the working programme; • The Agency for Economic Analysis and Forecasts (AEAF) prepares a draft on the national strategic goals and priorities of the Development Plan; the draft is presented to the Co-ordination Council for discussions and forwarded for approval to the Council of Ministers; • On the basis of the national strategic goals and priorities approved by the Council of Ministers, the respective OP Managing Authorities prepare draft Operational Programmes through working groups assigned to the OP Managing Authorities representing all relevant bodies and partners; the Operational Programmes are presented to the Co-ordination Council for approval only after the opinions of all interested parties have been consulted; • On the basis of the national strategic goals and priorities and the Operational Programmes, the AEAF prepares a final draft of the Development Plan and presents it to the Co-ordination Council for approval. arch. Belin Mollov

24. Съгласуване секторни с регионални Оперативни Програми, финансиране, изпълнение, мониторинг, отчети НАЦИОНАЛЕН ПЛАН ЗА ИКОНОМИЧЕСКО РАЗВИТИЕ Икономически цели, приоритети, макро-рамка, индикатори НАЦИОНАЛНА ОПЕРАТИВНА ПРОГРАМА ЗА РЕГИОНАЛНО РАЗВИТИЕ НАЦИОНАЛНА СТРАТЕГИЯ ЗА РЕГИОНАЛНО РАЗВИТИЕ НКУС: ЗУТ Цели, приоритети, индикатори Мерки, хоризонтални приоритети, индикатори, определяне РЦВ, определяне проекти, финансова рамка, ex-ante оценка Цели, приоритети, Ex-ante оценка, мето- дики за ОССРУ и Общински планове РЕГИОНАЛЕН ПЛАН ЗА РАЗВИТИЕ Методика, координация на ОССРУ в Района за планиране ОБЛАСТНА СТРАТЕГИЯ И СХЕМА ЗА РАЗВИТИЕ И УСТРОЙСТВО Предложения за проекти за регио-нално развитие и за местно развитие Областна рамка за общините – цели, приоритети ОБЩИНСКИ ПЛАН Programming process СПЕЦИАЛИЗИРАНИ И КОМПЛЕКСНИ СХЕМИ ПРОГРАМНО ДОПЪЛНЕНИЕ arch. Belin Mollov

25. Ex-ante evaluation The ex-ante evaluation of the Development Plan will focus on the following issues: • Consistency of the strategy and priorities with the socio-economic analysis; • Simulation of the Plan implementation effect on the demand side (consumption rate, consumer prices, investment demand, etc.) and on the supply side, especially SME sector development, innovation activity, and factor productivity; • Environmental situation and expected impact on the situation of the Plan implementation; • Equal opportunities between men and women; • Conformity of the measures with national legal framework and Community policies. arch. Belin Mollov

26. Partnership The list of partners that will be invited to participate in the DP working group includes: • regional authorities (NUTS2), • local authorities (selected by National Association of the Municipalities in the Republic of Bulgaria), • representatives of employers’ organisations and trade unions, having nationwide representation, non-governmental organisations, • Bulgarian Academy of Science and Universities. • Depending on the issues discussed in the sectoral sub-working groups sector specific NGOs will be invited to the meetings. • The line ministries (Managing Authorities of the Operational Programmes) - Ministry of Regional Development and Public Works, Ministry of Economy, Ministry of Labour and Social Policy, and Ministry of Agriculture and Forestry will be in charge to initiate and manage the process to ensure efficiency and completion in time. arch. Belin Mollov

27. CSF Monitoring Committee The following composition of the CSF Monitoring Committee is foreseen: • Public authorities: /18/ • Ministry of Finance (Chairman), Ministry of Regional Development and Public Works, Ministry of Economy, Ministry of Labour and Social Policy, Ministry of Agriculture and Forestry, Ministry of Environment and Water, Ministry of Transport and Communication, Ministry of Education and Science, Ministry of Culture, Ministry of Youth and Sport, Ministry of Health; • Two representatives from regional authorities NUTS 2 (rotating membership); • Four representatives of local authorities (selected by the National Association of the Municipalities in the Republic of Bulgaria). • Social-economic partners: /18/ • Six representatives of employers’ organisations, having nationwide representation; • Six representatives of trade unions, having nationwide representation; • Six representatives of NGOs which represent groups of social – economic interests according to the Law on Economic and Social Council as well as of the Bulgarian Academy of Science and of the Universities. arch. Belin Mollov

28. New Regional Development Act This Act regulate the public relations concerning the planning, programming, management, financing, state support, monitoring, control and evaluation of regional development. arch. Belin Mollov

29. New Regional Development Act – main goals The law pursue the following objectives: • Creating conditions for sustainable and balanced development of regions in the Republic of Bulgaria; • Creating prerequisites for diminishing inter-regional and inner-regional differences in economic development; • Securing conditions for growth of employment and incomes of the population in regions with specific problems; • Development of trans-border co-operation. arch. Belin Mollov

30. New Regional Development Act – principles Implementation of state policy in the area of regional development is build on the following principles: • Integrated planning and programming approach; • Concentration of resources for the purpose of attaining the regional development objectives; • Partnership, openness and transparency at all levels of planning, programming, financing, monitoring and evaluation; • Supplementing national public finance in the cases of co-financing schemes; • Inter-departmental coordination between the competent authorities in the process of planning, programming, financing, implementation, monitoring and evaluation; • Compatibility with other structure-formative policies, tools and actions at the international, national and regional level; • Observance of statutory rules for state support, for competition, public procurement, protection and improvement of the environment and elimination of all forms of inequality. arch. Belin Mollov

31. Planning regions • Northwest planning region with Vidin as the center, covering the administrative regions of Vidin, Vratsa and Montana, • North Central planning region with Russe as the center, covering the administrative regions of Russe, Veliko Turnovo, Gabrovo, Pleven and Lovech; • Northeast planning region with center Varna, covering the administrative regions of Varna, Turgovishte, Shumen, Razgrad. Silistra, Dobrich; • Southeast planning region with center Burgas, covering the administrative regions of Burgas, Sliven and Yambol; • South central planning region with center Plovdiv, covering the administrative regions of Plovdiv, Kurdjaly, Haskovo, Pazardjik, Smolyan and Stara Zagora; • Southwest planning region with center Sofia, covering the administrative regions of Sofia-city, Sofia-region, Kyustendil, Blagoevgrad and Pernik. arch. Belin Mollov

32. Special impact areas The special impact areas are: • Areas for economic growth; • Areas of industrial decline; • Border areas; • Rural and mountainous areas; • Areas with high unemployment rate arch. Belin Mollov

33. Strategic planning of regional development National Regional Development Strategy: • Comparative analysis of the economic and social condition of regions; • The regional development priorities and the specific goals to be attained over a definite period of time; • The actions of the competent authorities needed for achieving the objectives of the Strategy; • The action needed for monitoring, evaluation and updating of the Strategy. District Development Strategies and spatial planning schemes: • Analysis of the economic and social development of the respective administrative region; • The specific long-term goals and priorities for the development of the respective administrative region and the special impact areas; • Organisation and activities for the attainment of the strategic objectives; • The actions needed for the monitoring, evaluation and updating of the Strategy. arch. Belin Mollov

34. Regional development planning and programming • National Operational Programme • Regional Plan for Development • Municipal Plan for Development arch. Belin Mollov

35. National Operational Programme The National Regional Development Operative Program include: • Summarized analysis of the problems of the planning regions; • Major middle-term program objectives and priorities for economic and social cohesion in the development of the planning regions; • Description of the measures for implementation of the priorities, including data needed for verification of their compliance with the scheme for extension of state aids and for monitoring and evaluation; • A system of indicators to measure the expected impact of the program implementation; • Monitoring and evaluation indicators; • A summarized tentative financial plan showing the total amount of resources needed for implementation of the National Operative Regional Development Program by measures and financing sources. arch. Belin Mollov

36. Regional Development Plan The Regional Development Plan include: • Analysis of the economic and social condition and the development potential of the respective planning region; • Objectives and priorities and development measures; • Specific impact areas; • Proposal on needed resources, including a break-down by types of aids as per art. 32 herein, allocated to specific impact areas; • A tentative assessment of the plan of expected results; • An indicative financial table – by financing sources and by measures and priorities, consolidating the resources needed for implementation of the plan; • A description of the way in which consultations on the implementation of the Plan should be conducted with partners at a regional level. arch. Belin Mollov

37. Municipal Development Plan The Municipal Development Plan include: • Analysis of the economic and social development of the municipality; • The priorities and specific objectives and measures for development of the respective municipality; • Description of joint activities and projects, which contribute to the attainment of the development objectives of neighboring municipalities; • A tentative financial table, showing potential resources for implementation of projects and activities referred to in item 3 herein; • A description of the way in which information will be provided and the Plan will be brought to the attention of the public. arch. Belin Mollov

38. Management of regional development The Minister of Regional Development and Public Works: • Organize the drafting of the National Regional Development Strategy; • Organize the drafting of the Regional Development Plans of the planning regions; • Organize, coordinate and conduct consultations on the main objectives, priorities and measures of the National Operative Regional Development Program; • Guide and organize the implementation of the National Operative Regional Development Program, as well as the up-dating of the Program Annex therein; • Organize and coordinate the system of gathering of data on the implementation of the National Operative Regional Development Program; • Organize the preparation of annual reports and the final report on the implementation of the National Operative Regional Development Program; • Organize an interim evaluation of the implementation of the National Operative Regional Development Program; • Provide methodological guidance to all bodies involved in developing and enforcement of the documents referred to in articles 9 and 12; • Participate in the negotiations with EU structures within the framework of his competencies; • Secure harmonization of the legal framework in the area of regional development with the national and European legislation; • Participate in inter-governmental committees for trans-border co-operation. arch. Belin Mollov

39. Regional Development Councils The Regional Development Councils perform the following functions: • Discuss and conduct consultations on the development strategies of the administrative regions included in the planning region; • Discuss and conduct consultations on the Regional Development Plan of the respective planning region, while observing the principle of partnership; • Discuss and conduct consultations on the measures to be included in the National Operative Regional Development Program; • Make a preliminary assessment of the project proposals submitted in fulfillment of the measures contained in the National Operative Regional Development Program; • Express an opinion on the annual and final reports; • Interact with the Administrative Regions’ Development Councils and the central bodies of the executive branch; • Perform any other functions as assigned to them with an act of the Council of Ministers or the Minister of Regional Development and Public Works. arch. Belin Mollov

40. Directorates “Technical support, coordination and management of regional programs and plans” The Directorates perform the following functions: • Assist the activities and perform the functions of a secretariat of the Regional Development Council; • Organize the drafting of and consultations on the Regional Development Plans and submit them for discussion to the Regional Development Councils; • Participate in the discussions on the main measures, programs, sub-programs, activities and projects in the course of development of the National Operative Program for development of the planning regions; • Take part in the short-listing of projects developed by end-beneficiaries for implementation of the measures included in the National Operative Regional Development Program in its part for the region; • Provide methodological guidance to the end beneficiaries in the implementation of the selected projects; • Provide assistance to the applicants to meet the statutory requirements; • Coordinate with the central bodies of the executive branch with a view to attaining horizontal coordination of planned measures, programs, sub-programs and activities; • Assist the collection of data needed for analysis and evaluation of the implementation of the National Operative Regional Development Program in the planning regions; • Participate in the preparation of interim and annual progress reports on the implementation of the National Operative Regional Development Program; • Draw up periodically information on the process of planning and implementation of the National Operative Regional Development Program in the planning region. • Perform other functions assigned by the state administration, under whose supervision they work. arch. Belin Mollov

41. Regional governors Regional governors: • Organize the development and approve the District’s Development Strategy; • Submit the District’s Development Strategy for discussion to the District’s Development Council and the Regional Development Council; • Assist the municipalities on the territory of the district in developing their Municipal Development Plans; • Render assistance in the development, implementation, monitoring and evaluation of the respective Regional Development Plan; • Coordinate the development of project proposals in accordance with the District’s Development Strategy and the assumptions of the Regional Development Plan; • Promote publicity and transparency in the processes of planning and programming of regional development on the territory of the district; • Sign agreements of association with neighboring districts for joint activities aimed at the implementation of the regional development measures. arch. Belin Mollov

42. District Development Council The District Development Council: • Discuss and conduct consultations on the draft of the Regional Development strategy, submitted by the regional governor; • Evaluate the initiatives of the municipalities, regional agencies, citizen associations and NGOs connected with the Regional Development strategy; • Make proposals for signing agreements of association with neighboring administrative regions for joint regional development activities; • Discuss and conduct consultations on the actions needed to secure publicity and transparency of planning and programming of regional development on the territory of the region, on proposal of the regional governor. arch. Belin Mollov

43. The mayor of municipality The mayor of municipality: • Organize the drafting of the Municipal Development Plan and the Program for its implementation and submit them for adoption by the Municipal Council; • Guide, organize and control the activity for implementation of the Program for Implementation of the Municipal Development Plan; • Produce and submit to the Municipal Council for approval the annual and final reports on the implementation of the Program for Implementation of the Municipal Development Plan; • Secure publicity and transparency of the Municipal Development Plan and the actions for its implementation. arch. Belin Mollov

44. The municipal council The municipal council: • Discuss and adopt the Municipal Development Plan and the Program for its implementation; • Approve the reports on the implementation of the Program for Implementation of the Municipal Development Plan upon proposal of the mayor. arch. Belin Mollov

45. Thank you for your attention! arch. Belin Mollov