SF Managing Authority – Ministry of Finance 1 EU Structural Funds Annual Implementation Report 2005 Iveta Baltiņa Ministry of Finance Head of EU Funds Department 1 June 2006

SF Managing Authority – Ministry of Finance 2 Contents  Financial progress of the EU Structural Funds (SF)  Result indicators characterising the SF implementation progress  Tasks for 2006

SF Managing Authority – Ministry of Finance 3 SF Financial Progress

SF Managing Authority – Ministry of Finance 4 SF Financial Progress

SF Managing Authority – Ministry of Finance 5 SF Implementation Progress  ERDF indicators: assistance granted to 13 research centres (108%) and 565 items of research equipment purchased (283% of the planned amount for 2004 – 2006) premises of 10 vocational education institutions and 9 higher education institutions renovated (146%) 20 emergency care vehicles purchased (100%) 32 infrastructure investment projects

SF Managing Authority – Ministry of Finance 6 SF Implementation Progress  ERDF – less successful indicators: 2 water service systems improved (5% of the planned amount for 2004 – 2006) the development of broadband internet access infrastructure has not commenced yet no increase in the number of primary health-care centres and hospitals, included in the Unified Blood Donation Information System

SF Managing Authority – Ministry of Finance 7 SF Implementation Progress  ESF indicators: for the purpose of promoting employment, assistance was provided to individuals (76% of the planned number for the 2004 – 2006 period) assistance provided to 126 institutions and all municipalities (126%) to enhance institutional capacity building 5 institutions were provided assistance to conduct doctoral/post-doctoral research, the implementation of 7 lifelong learning projects is currently underway to reduce social exclusion, assistance was provided for 3851 individuals (59%)

SF Managing Authority – Ministry of Finance 8 SF Implementation Progress  ESF – less successful indicators: the number of employment promotion projects of the Ministries of Welfare and Economy(MW - 60 projects or 5% of the total amount planned for the 2004 – 2006 period, EM - 4 projects or 1,3% of the total amount planned) 89 student internship projects (7,4%) 2 training projects for teachers and academics (0,8%)

SF Managing Authority – Ministry of Finance 9 SF Implementation Progress  EAGGF indicators: high-quality forestry, forest soil cultivation and timber primary processing machinery was introduced in 87 sites (193% of the planned amount for the 2004 – 2006 period ) 290 new farms supported (126%) 607 agricultural companies supported (61%)

SF Managing Authority – Ministry of Finance 10 SF Implementation Progress  EAGGF – less successful indicators: 1 internal quality control and management system introduced (2% of the planned amount for 2004 – 2006) no agrochemical studies of soils conducted (no project applications received) no results within the framework of the Development of Local Action (“LEADER+” type measure)

SF Managing Authority – Ministry of Finance 11 SF Implementation Progress  FIFG indicators: 29 fishing vessels scrapped (116% of the planned amount for 2004 – 2006) 55 fishing vessels (57%), 7 fish processing enterprises (28%) and 1 port (33%) modernised  FIFG – less successful indicators: no marketing measures implemented for fisheries and aquaculture no producer organisations were provided assistance

SF Managing Authority – Ministry of Finance 12 Tasks for 2006  Factors impeding the implementation of the SF in 2005: inflation/cost overruns, as well as labour shortages (e.g., necessary to complete construction projects) specification of project implementation conditions, lengthy project appraisal process, no Structural Funds Management Law lack of project management skills of final beneficiaries and public bodies  Delays in project implementation timelines  Little project applications for specific activities

SF Managing Authority – Ministry of Finance 13 Tasks for 2006  Make overcommitments in the SF implementation monitoring  Improve the legislative basis of the SF implementation  Continue evaluation activities  Continue SF management communication strategy informing about the achieved results  Update and implement the Human Resource Development Plan