MINISTRY OF EUROPEAN AFFAIRS

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MINISTRY OF EUROPEAN AFFAIRS Authority for
Coordination of Structural Instruments Coordina
tion of expertise to be received from
International Financial Institutions
(IFIs) 13th of July 2012

• MINISTRY OF EUROPEAN AFFAIRS
• Managing Authority for
• Operational Programme Technical Assistance

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Objective of using the IFIsexpertise

• To improve the implementation of Structural Funds
  and preparing the next programming period
  2014-2020, based on ECs 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
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Framework of implementation

• For designing the framework for implementation of
  IFIsexpertise, 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
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Coordination mechanism
Level 1. High-level coordination between the minister of European affairs and the management of the IFIs

• 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.

Level 2. Operational coordination between MoEA, MAs and IFIs

• 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
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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
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Horizontal needs World Banks expertise (I)
Tasks Beneficiary Status
Analyse the national framework on investment in terms of impact on preparation and implementation of projects financed from Structural and Cohesion Funds ACIS Service agreement signed on June 27th, 2012
Upgrading the land registration system ANCPI ToRs under development
Elaboration of a strategy and action plan for implementing the INSPIRE directive ANCPI Project will be developed in a second stage
MINISTRY OF EUROPEAN AFFAIRS Managing Authority
for Operational Programme Technical Assistance
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Horizontal needs World Banks expertise (II)
Tasks Beneficiary Status
Rationalization of public investment To be identified The measure will be proposed to the new Government
Building capacity for economic analysis to support policy design GSG ToRs under development
Enhance spatial planning as a precondition for urban development Ministry of Regional Development ToRs under development
Support for elaboration of a National Action Plan for the National Climate Change Strategy and a study on Green Growth and Efficient Transition Process to a Low Carbon Economy for Romania. Ministry of Environment ToRs under development
MINISTRY OF EUROPEAN AFFAIRS Managing Authority
for Operational Programme Technical Assistance
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Horizontal needs requiring further discussion
for clarification
Tasks IFI which has expertise
Identify areas in which financial engineering mechanisms can be applied to and defining those mechanisms, including achieving the energy efficiency objective EIB/EBRD
District heating area EIB/EBRD/WB
MINISTRY OF EUROPEAN AFFAIRS Managing Authority
for Operational Programme Technical Assistance
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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
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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
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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
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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
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Needs for IFIs expertise HRD SOP

• Needs for World Banks 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
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Needs for IFIs expertise ADC OP

• Needs for World Banks 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
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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
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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
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Conclusions
It is necessary to continue discussion to clarify the needs identified, to finalise the elaboration of the terms of reference, to sign the service agreements and to start implementation of the expertise for this MoEA has put in place a mechanism of coordination of IFIs expertise. It is necessary to continue discussion to clarify the needs identified, to finalise the elaboration of the terms of reference, to sign the service agreements and to start implementation of the expertise for this MoEA has put in place a mechanism of coordination of IFIs expertise. It is necessary to continue discussion to clarify the needs identified, to finalise the elaboration of the terms of reference, to sign the service agreements and to start implementation of the expertise for this MoEA has put in place a mechanism of coordination of IFIs expertise.
IFI Phase I (signing and entering into force of MoU) Phase II (signing of subsequent service agreements)
EIB Completed on 26 April 2012 No service agreement was concluded. The most advanced tasks are related to support to MAs for Transport and Environment SOP (signature expected for July 2012).
WB Completed on 30 April 2012 First service agreement was signed on June 27th, 2012, for ACIS task. The most other advanced tasks are (signature is expected for July 2012) upgrading the land registration system, building capacity for economic analysis to support policy design, enhancing spatial planning as a precondition for urban development, developing integration strategies for poverty areas and less favored communities.
EBRD Estimated for quarter III or IV 2012 Depend on the finalisation of the phase I (quarter IV, 2012 or quarter I , 2013).
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Thank you! Livia Chirita Director Managing
Authority for Operational Programme Technical
Assistance www.poat.ro
Autoritatea de Management Programul Operational
Asistenta Tehnica