1. Instrument for pre-accession assistance Marius Lazdinis Unit A5 "Pre-accession Assistance for Agriculture" DG Agriculture and Rural Development 1

2. Defining the scope Enlargement context Rural development, with an emphasis on agricultural sector Broad range of means to facilitate rural development: local and national funds and policies, EU, other donors At the end – all is in your hands! 2

3. Ways of interaction Trade – Stabilization and Association Agreements (SAAs), largely liberalised, except for some sensitive products: e.g. baby beef, wine, sugar Approximation to the acquis – SAA, administrative burden, but helping access EU single market Pre-accession assistance - institutional and capacity building, investment support 3

4. Steps towards accession Pre-candidate period prepare to implement pre-accession instruments Pre-accession period prepare to implement CAP upon accession to the EU Membership start implementing CAP 4

5. Pre-accession assistance IPA - Instrument for Pre-Accession assistance for candidate and potential candidate countries Financial envelope allocated for the period 2014– 2020 – EUR 11.6 billion All countries are eligible – depending on the level of your preparedness! 5

6. Objectives of assistance Specific objective support for political reforms … 1 Specific objective support for economic, social and territorial development, with a view to smart, sustainable and inclusive growth … 2 Specific objective strengthening the ability of beneficiaries to fulfil the obligations stemming from membership and alignment to the EU acquis … 3 Specific objective strengthening regional integration and territorial cooperation … 4 General objective To support the beneficiaries in adopting and implementing the political, institutional, legal, administrative, social and economic reforms required in order to comply with the Union's values and to progressively align to the Union's rules, standards, policies and practices, with a view to UNION MEMBERSHIP IPA II REG. art. 1 IPA II REG. art. 2(1)

7. Five policy areas 1.Reforms in preparation for Union membership and related institution- and capacity building 2.Socio-economic and regional development 3.Employment, social policies… 4.Agriculture and rural development 5.Regional and territorial cooperation 7

8. Thematic priorities for assistance Annex II, IPA II Regulation (j) Contributing to the security and safety of food supply and the maintenance of diversified and viable farming systems in vibrant rural communities and the countryside 8

9. Thematic priorities for assistance Annex II, IPA II Regulation (k) Increasing the ability of the agri-food sector to cope with competitive pressure and market forces as well as to progressively align with the Union rules and standards, while pursuing economic, social and environmental goals in balanced territorial development of rural areas 9

10. IPA II architecture Overview of legal framework MULTI-COUNTRY PROGRAMMES COMMON IMPLEMENTING REGULATION IPA II REGULATION IPA II IMPLEMENTING REGULATION MULTI-COUNTRY STRATEGY COUNTRY PROGRAMMES COUNTRY STRATEGIES Framework Agreements Framework Agreements Financing Agreements Financing Agreements Regulations Planning & programming Legal basis Implementing acts 11 March 2014 2 May 2014 September 2014 December 2014 ✓ ✓ ✓ adoption

11. IPA Rural Development Objectives (1) In view of Union priorities for rural development, by means of developing human and physical capital, to increase the food-safety of the IPA II beneficiary and the ability of the agri-food sector to cope with competitive pressure as well as to progressively align the sector with Union standards, in particular those concerning hygiene and environment, while pursuing balanced territorial development of rural areas 11

12. IPA Rural Development Objectives (2) Channelling investment support through management and control systems which are compliant with good governance standards of a modern public administration and where the relevant country structures apply standards equivalent to those in similar organisations in the European Union Member States 12

13. Strengthening public management capacities Guiding countries in creating modern public management structures, based on the principles of good governance: Openness (transparency) Participation (partnership) Accountability Effectiveness Coherence 13

14. Implementation Finances allocated Multi-annual programme adopted (contains measures) Management and control system set-up Budget implementation tasks entrusted Calls for applications start 14

15. IPARD structures F I N A L B E N E F I C I A R I E STechnical Bodies IPARD Agency Internal AuditRegional Offices Delegated Bodies Managing Authority National Authorising Officer National Fund IPARD Monitoring Committee IPA Monitoring Committee European Commission National IPA Coordinator Audit Authority reporting audit, control management and control system (MCS) 15

16. Measures – 11 in total 1.Investments in physical assets of agricultural holdings 2.Support for the setting up of producer groups 3.Investments in physical assets concerning processing and marketing of agricultural and fishery products 4.Agri-environment-climate and organic farming measure 16

17. Measures – 11 in total 5.Implementation of local development strategies - leader approach 6.Investments in rural public infrastructure 7.Farm diversification and business development 8.Improvement of training 9.Technical assistance 10.Advisory services 11.Establishment and protection of forests 17

18. Example - on the farm level Milk sector Milking machinery, milking room facilities, milk cooling and storage as well as on-farm milk transportation equipment Construction and modernisation of open and semi-open stables 18

19. Example - on the farm level Meat sector Construction and modernisation of animal stables/shelters, storage buildings and machine sheds Silage/fodder production and handling equipment and machinery On-farm animal feed preparation, handling, distribution systems and storage 19

20. Example – primary processing Milk sector Construction and modernisation of milk collection centres, milk storage and cooling equipment, specialised milk transportation equipment Investments for homogenisation, pasteurisation, packaging, cooling, and storing of milk and milk products; quality control systems 20

21. Example – primary processing Meat sector Construction / renovation of slaughter houses, cooling storage rooms Investments in establishment of food safety systems to reach EU standards Construction of rendering plants 21

22. Investments in rural public infrastructure Assistance covers tangible and/or intangible investments Priority given to investments in water and energy supply, waste management, local access to information and communication technologies and local access to roads of particular importance for local economic development Where local rural development strategies have been established, the investments supported must be in line with those strategies 22

23. Implementation of local development strategies - Leader approach Objective: Transfer of knowledge and innovation in agriculture, forestry and rural areas and strengthening public administration capacity in implementation of rural development programmes Support for: the running of the local private- public partnerships, also referred as "local action groups", the implementation of small projects as a start-up tool, acquisition of skills, awareness raising activities and promotional events 23

24. Farm diversification and business development Assistance to investments aimed at diversification and development of rural economic activities by: a)raising of the economic activity b)creation of employment opportunities c)diversification into non-agricultural activities Priority given to investments for creation and development of micro and small enterprises, crafts and rural tourism, to promote entrepreneurship 24

25. Co-financing principle Public aid up to 50% of total eligible costs of the investment

26. CONTRACTING CLAIM PAYMENTS CASH FLOW INVESTMENT 100 % 60 +/- DAYS GRANT 50% Beneficiary Cash flow

27. State of play 2014 MKD – Implementing IPARD I, programme prepared TUR - Implementing IPARD I, programme prepared MNE – preparation of programme in process SRB – preparation of programme being finalised AL – preparation of programme in process BiH – pre-”0” stage – discussing on where to start Kosovo – moving ahead, within its own remits 27

28. What funds to expect? MKD – close to EUR 70 million for 7 years, continuing in 2014 TUR – around EUR 800 million for 7 years, continuing in 2014 MNE – close to EUR 40 million, starting in 2015 SRB – around EUR 170 million, starting in 2015 AL – around EUR 70 million, starting in 2015 or 2016 + projects to support institution and capacity building in agriculture and rural development 28

29. Thank you 29