1. The Instrument for Pre-Accession Assistance (IPA) in Montenegro Podgorica, December 2011

2. Pre-Accession Strategy Montenegro 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)

3. 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

4. IPA Components: 1. Transition Assistance and Institution Building 2. Cross-border cooperation 3. Regional Development 4. Human Resources Development 5. Rural Development

5. YEAR2007200820092010201120122013TOTAL Transition Assistance and Institution Building 27,490, 50428,112,55228,632,17929,238,82329,843,59916,346,4715,296,035164,960,163 Cross-border Co-operation3,909,4964,487,4484,667,8214,282,6904,310,3444,338,5514,418,68730,415,037 Regional Development000008,000,00015,200,00023,200,000 Human Resources Development 000002,800,0002,900,0005,700,000 Rural Development0000 3,300,0007,600,00010,900,000 Total 31,400,00032,600,00033,300,00033,521,51334,153,94334,785,02235,414,722235,175,200 Financial allocations for Montenegro by component ()

6. 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)

7. Status of IPA Component I Programme yearAllocation % Contracted by December 12 2011 % Paid by December 12 2011 No. of Contracts till December 12 2011 IPA 200723,870,50495.76%84.94%45 IPA 200826,800,00095.92%66.04%36 IPA 200927,232,17986.41%43.51%47 IPA 2009 add.1,200,00098.53%56.98%3 IPA 201028,638,82359.12%14.78%24 TOTAL:107,741,50683.73%50.81%151

8. Status of IPA Component II Programme yearAllocation % Contracted by December 12 2012 % Paid by December 12 2012 No. of Contracts till December 12 2012 CBC 20072,300,00097.02%70.24%28 Trans-national programme 2007 883,62494.19%75.42%9 CBC 20082,300,00056.38%37.01%12 Trans-national programme 2008 947,29693.96%41.22%8 Trans-national programme 2009 1,012,24210.00%0.00%1 TOTAL:7,443,16270.54%47.34%57

9. 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

10. 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

11. 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

12. 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

13. 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

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

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

16. Allocation of IPA funds to Municipalities (%)

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

18. Ongoing projects IPA I and II (2007-2010) BeneficiaryNo. of projects Amount in EUR % of funds% of projects Ministries and Public Administration 87 76,300,00074,8 %49,2 % Local self- governments 2819,400,00019,02 %15,8 % NGOs 626,300,0006,18 %35 % TOTAL177102,000,000100 % How many projects ongoing by: