1. Capacity Development Programme
IPA
New Challenges for Management of EU Assistance
Dragan Djuric
Head of Capacity Development Unit
Regional conference Strengthening National Capacities for Efficient Management of External Assistance
14-15 May 2007
Podgorica, Montenegro

2. The Instrument for Pre-Accession Assistance
An integrated Pre-Accession Instrument to assist candidate countries (Croatia, Turkey) and potential candidate (Western Balkan) countries.
Replaces the previous pre-accession instruments (Phare, ISPA, SAPARD and Turkey pre-accession instruments) as well as the CARDS instrument.
Financial envelope (2007–13): less then 11 billion € (initial calculations were much bigger)

3. Accession and pre-accession driven instrument
Specificities of IPA
Accession and pre-accession driven instrument
European and Accession Partnerships, Annually country Progress Reports, Strategy paper, Stabilisation and Association Agreements
Medium term perspective
Tool for accession

4. Potential candidate Countries:
Aims of IPA
Potential candidate Countries:
support for participation in the Stabilisation and Association process all the way to their future accession
Candidate countries:
Full pre-accession support to help countries to:
Adopt and implement the acquis
Implement EU funds on accession

5. Structure of the IPA Transition Assistance and Institution Building
Five components:
Transition Assistance and Institution Building
Regional and Cross-Border Co-operation
Regional Development
Preparation for European Fund for Regional Development
Human Resources Development
Preparation for European Social Fund
Rural Development
Preparation for Common Agriculture Policy

6. General policy and programming framework
Financial Framework: Multi-annual Indicative Financial Framework (MIFF), per country and per component, 3 years rolling forward, included in enlargement package.
Strategic programming: Multi-annual Indicative Planning Documents (MIPD), per country and for all components, integrated with MIFF.
Specific programming by country and by component
Regional programming

7. Multi-Beneficiary IPA
Regional Cooperation
South East Europe Cooperation Process
Infrastructure
Energy Community Treaty (2005)
Core Transprot Network (SEETO) - South East Europe Transport Observatory
Common Aviation Area (ECAA)
Regional Environmental Reconstruction Programme (REReP)
Sava River Commission
Project Preparation Facilities (PPF)
Justice and Home Affairs
Europol, Eurojust, Org. crime, Corruption…
Internal Market
CEFTA 2006.
Public Administration Reform
TAIEX, SIGMA, RESPA
Democratic Stabilisation
Civil society organization, social inclusion..
Education, Youth and Research
Community programs: Tempus, Youth…
Market Economy, Administration, Nuclear

8. Why decentralisation? To prepare beneficiary countriies:
to manage properly and effectively EU pre-accession funds,
to improve their own financial management systems
to increase ownership of EU assistance
To prepare PCC for candidate status, under which DIS will be required for components 3, 4 and 5.
To gradually prepare CC to manage, upon accession, European structural, cohesion and agricultural funds

9. New structures for DIS/IPA
National IPA Coordinator (NIPAC)
Competent Accrediting Officer (CAO) who should be a high-ranking official in the government or the state administration.
Senior Programme Officers (SPO) in line ministries with PIU
The National Fund which should be the central treasury entity within the Ministry of Finance through which the EU funds will be channelled towards beneficiaries.
The National Authorising Officer (NAO) who should lead the National Found and take the overall responsibility for the financial management of EU funds.
The Central Financing and Contracting Unit (CFCU) which should be the core body responsible for managing and implementing the projects in IPA components I, II, III and IV. Component V will have its own Operating Structure later.
An Audit Authority (AA) which should be responsible for verifying the effective and sound functioning of the management and control systems. Public Internal Finance Control (PIFC) Strategy development and implementation.

10. Roadmap to DIS - phases
Preparation for Accreditation: (at least months?)
Phase 0: Set-up of Structures
Phase 1: Gap assessment
Phase 2: Gap Plugging
Accreditation at national level by NAO (min. 3-4 months?)
Phase 3: Compliance assessment
Commission Decision Phase (min. 3-4 months?)
Phase 4: Decision of the European Commission – Autorisation of country institutions to switch on Decentralized Management System

11. DIS
Decentralised Implementation System implies obligations of beneficiary countries to manage the whole project cycle:
Programming,
Implementation,
(Tendering & Contracting)
Follow-Up
(Monitoring & Evaluation)
Sensitive issues:
Administrative capacities, new structures
Financial management, co-financing
Audit and control
Public procurement
Data base

12. Challenges - Problems
Development of efficient institutions at all levels and capacities to manage EU funds
Good knowledge of EU financial and programming procedures
Program preparation focusing on priorities in line with sustainable development strategy
Assistance (projects) data base
Long term programming
Insufficient skills to develop and manage the projects and related expertize, knowledge of languages
Administrative obstacles
Institutional building for higher Absorption capacity
How to treat internal and external funds – equal
Finishing of mandate of EAR / end of 2008
No Delegation of EC

13. Main objectives Building capacities and systems
Improving resource allocation, budgeting and programming of international assistance to meet national policy priorities
Framework for better monitoring and reporting
More accountability in policy implementation (spending linked to results)
More effective management of public funds
Developing Internal Auditing System
Develop governmental ownership