THE REPUBLIC OF SERBIA MINISTRY OF FINANCE

ACTION PLAN

FOR PROGRAMMING INTERNATIONAL DEVELOPMENT ASSISTANCE RESOURCES IN THE REPUBLIC OF SERBIA IN 2010 AND REPORTING ON INTERNATIONAL ASSISTANCE

AND PROGRAMMING INSTRUMENTS OF EU PRE-ACCESSION ASSISTANCE-IPA 2011-

With

ANNEXES

Belgrade, January 2010

TABLE OF CONTENTS

PROGRAMMING INTERNATIONAL DEVELOPMENT ASSISTANCE RESOURCES IN THE REPUBLIC OF SERBIA IN 2010 AND REPORTING ON INTERNATIONAL ASSISTANCE AND PROGRAMMING INSTRUMENTS OF EU PRE-ACCESSION ASSISTANCE............................................1PROGRAMMING INTERNATIONAL DEVELOPMENT ASSISTANCE RESOURCES IN THE REPUBLIC OF SERBIA IN 2010 AND REPORTING ON INTERNATIONAL ASSISTANCE............3

1. INTRODUCTION – PURPOSE AND OBJECTIVE.......................................................................32. PROCESS OF PROGRAMMING INTERNATIONAL ASSISTANCE IN 2010.........................5

Activity plan in the field of programming international assistance in 2010:.........................................53. PROCESS OF REPORTING ON IMPLEMENTED INTERNATIONAL ASSISTANCE.........74. INSTITUTIONS INCLUDED IN THE PROGRAMMING PROCESS AND THEIR ROLE.....8

International assistance programming process defined under this Action Plan includes the active participation of the following institutions:.............................................................................................8

PROGRAMMING INSTRUMENT FOR EU PRE-ACCESSION ASSISTANCE..................................10DEFINITIONS............................................................................................................................................101. INTRODUCTION..............................................................................................................................11I. STARTING POINTS, PRINCIPLES AND OBJECTIVES...........................................................122. ROLES AND RESPONSIBILITIES................................................................................................13

3.1 NIPAC roles and responsibilities...................................................................................................143.2 Role and responsibility of competent ministries............................................................................153.3 Role and responsibilities of EU Integration Office........................................................................163.4 Role and responsibility of Ministry of Finance.............................................................................16

3. ROLE OF APPROPRIATE BODIES..............................................................................................164.1 Commission for programming and managing EU funds and Development Assistance................164.2 Inter-sectors project groups for IPA programming........................................................................174.3 Project assessment group...............................................................................................................17

14. PLAN OF ACTIVITIES DURING THE PROCESS OF IPA PROGRAMMING......................195.1 Authorized proposers of project ideas and proposals....................................................................195.2 Beginning of the process of IPA programming in 2011, the preparation and submission of draft project proposals and modifications of project proposals prepared during the process of IPA 2011 programming........................................................................................................................................195.3 Technical assessment of draft project proposal.............................................................................205.4. Establishing the list of draft project proposals..............................................................................205.5. Making project proposals..............................................................................................................205.6. Amended project proposals...........................................................................................................215.7. Consultations with EU Delegation................................................................................................215.8. Use of language.............................................................................................................................21

ANNEXES

ANNEX 1: CALENDAR FOR PROGRAMMING INTERNATIONAL ASSISTANCE IN 2010

ANNEX 2: INSTRUCTIONS FOR ENTERING INFORMATION ON DRAFT PROJECT PROPOSAL FOR FUNDING FROM FOREIGN DEVELOPMENT ASSISTANCE RESOURCES IN INFORMATION SYSTEM ISDACON

ANNEX 3: EXPECTED DONORS’ RESOURCES IN THE PERIOD 2009-2010

А. TOTAL EXPECTED INTERNATIONAL ASSISTANCE ASSETS PER SECTOR IN THE PERIOD 2010-2012Б. DEVELOPMENT ASSISTANCE POLICY, STRATEGIC FRAMEWORK AND PROCEDURES PER DONATORS

ANNEX 4: DRAFT PROJECT PROPOSAL EVALUATION FORM FOR IPA FUNDING 2011

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PROGRAMMING INTERNATIONAL DEVELOPMENT ASSISTANCE RESOURCES IN THE REPUBLIC OF SERBIA IN 2010 AND REPORTING ON INTERNATIONAL ASSISTANCE

1. INTRODUCTION – PURPOSE AND OBJECTIVE

Ministry of Finance, competent for harmonizing activities in the field of planning, providing and using grants, European funds and other forms of development assistance from abroad, conducted within Sector from programming and Management of EU funds and development assistance. Aiming at increasing international aid effectiveness, and pursuant to Paris Declaration on Aid Effectiveness, the Ministry of Finance took series of activities, during 2007, 2008 and 2009, including – making Action plan from programming aid. Considering:

General goal to improve effectiveness and efficiency of aid in the Republic of Serbia through better targeting foreign aid funds towards priorities specified under national strategic documents;

Government efforts to improve the coordination of various reform processes and progress towards an integrated planning, budgeting (the deployment of internal and external funds), the process of monitoring and reporting, along with results-oriented approach;

Reforms by the Ministry of Finance in public finances sector, especially the reform of budget planning process by introducing the classification program in preparing the budget in the pilot Ministries;

The need to strengthen the functions of strategic and operational planning in public institutions, setting up a unified platform for programming budget and foreign aid funds, leading to greater efficiency in the use of total resources and ultimately to achieving development aims in more efficient and faster manner;

The obligations of donors and partner-countries specified under the Paris Declaration on Aid Effectiveness, adopted in Paris on 2nd  of March, 2005, particularly strengthening the national ownership of development process, donor coordination with national development strategies and priorities, harmonization of donor activities and management to achieve results;

Commitment of the Republic of Serbia to join the EU, including implementation of a number of legal, institutional and economic measures, as well as EU financial instruments available to support the process of European integration (management of the European Union resources requires significant capacities and specific institutional structures to be built in the future),

programming process has improved in recent years in terms of defining the procedure that would lead to improved coordination processes in progress (planning, budgeting and programming of foreign aid), improved coordination of the individual donor's annual programming process, greater compatibility and complementarity of programs which the resources were provided for, as well as identifying gaps and open questions to be further analyzed in the future. Common phase of identification of priority programs / projects was introduced by improved programming process, as well as defined strategic bases for the definition international aid priority projects, a form of project proposals submission and consultation process when defining programs / projects, creating proposals, and their presentation before the donor community.

Programming process is based on two types of strategic documents:

Donors’ strategic documents and National strategic documents.

The donor’s strategic document is the document defining priorities of the support to the country – aid beneficiary well as financial resources for implementing established priorities (donors’ strategic documents shall be presented in Annex 3 of this Action Plan).

The document "Needs of the Republic of Serbia for International Assistance in the period 2009-2011” will be a starting point in programming process, considering that it determines projects / programs of higher priority for implementation of medium-term targets per sectors, as well as inter-sectors international assistance priorities

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In the process of programming, the Ministry of Finance shall support relevant institutions in the identifying priorities and provide consultation of relevant national institutions and the donor community.

Given that the level of capacity for planning and managing international funds in the ministries has been under-developed, we expect that the process of joint international funds programming shall lead to the identification of gaps and measures to strengthen capacity in ministries, better targeting of technical assistance, which will result in improved quality of overall funds management process in the years to come.

Proposed dynamics for the programming process has been provided considering below mentioned specific circumstances: The role of the Ministry of Finance in the process of programming EU funds (IPA - Instrument of Pre-

accession Assistance), and the necessity to harmonize the programming of other assets in foreign aid with the process, taking into account the need for meeting the requirements of the Stabilisation and Association process, the importance of the EU funding in terms of scope, strategic framework supporting the strict rules and procedures for the implementation of resources.

Programming and implementation procedure of individual donors' funds, including the time frame, are significantly different, leading to difficulties in synchronizing the programming of funds from donors' specific fiscal year, hence the proposal includes the programming in accordance with the priority projects for the years 2011 and 2012 (beginning of implementation has been planned for this period).

Preparation of the budget during the 2010 will be carried out in parallel to the program classification and the line classification (revenue and income and/or expenses and expenditures). One of the reasons for the absence of joint programming of international aid and budget for 2010 has been conflict between the time frame for planning and implementation of projects - financial plans are submitted to the Ministry of Finance in August of the current year and implementation starts in the next one, whilst regarding the projects financed from donors’ funds, the period between the submission of proposals and the beginning of the realization is significantly longer. The proposed programming process provides the coordination of these two processes, and will be tried to ensure the necessary projects co-financing during the budget planning process and a better starting point for drawing up financial plans of ministries through information on potential external specific projects financing.

Insufficient institutional capacity in terms of number and training of employees in the Ministry of Finance and other ministries / institutions, is the limitation to achieve high-quality programming process, created documents and preparation of project proposals, therefore it is expected that the process includes gained experience and well-focused capacity development in the future.

The document "Needs of the Republic of Serbia for International Assistance in the period 2009-2011" shall be adopted by the Government of the Republic of Serbia. Programming process is based on this document, and provides its review and improvement.

Definition of strategic, medium- and short-term targets by sectors, as well as plans for priority actions for their implementation, which were presented in the document "Needs of the Republic of Serbia for International Assistance in the period 2009 – 2011”, for the ministries involved in the project of annual operational planning (AOP), the planning process is based on the AOP methodology (which is also used in the preparation of operational plan of the Government and in preparing the budget in accordance with program classification). Experience in programming process in 2007 and 2008 and comments of competent ministries and donors’ representatives on the positive and negative sides of this process.

2. PROCESS OF PROGRAMMING INTERNATIONAL ASSISTANCE IN 2010

Process of programming international assistance shall be based on following starting principles:

For the purpose of the effectiveness of the use of available funds, in 2010 programming will be coordinated and carried out simultaneously at the stage of identification of project proposals

Having in mind the specificities of the donors and time periods between the programming and implementation of projects, competent ministries submit draft project proposals implementation of which is expected to start in 2011 and 20121.

IPA programming process is carried out in accordance with the instructions and procedures specified under the Action Plan for programming the EU Pre-Accession Assistance instruments – IPA 2011.

Identification of priority project proposals by sectors will be made on the basis of the document "Needs of 1 Depending on the urgency / preferences, level of project documents preparation, as well as ability to provide grants and make them quickly available for these projects financing, this process may include projects implementation of which will start during 2010.

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the Republic of Serbia for International Assistance in the period 2009-2011”, and in accordance with the strategic documents of donors and their specific requirements / limitations, as well as possibilities for financing from the budget. Particular attention should be paid to the identification of project proposals within the IPA programming due to the need to implement requirements of the processes of European integration and continuity of projects financed from EU funds

When drafting the document "Needs of the Republic of Serbia for International Assistance in the period 2009 - 2011", it was taken into account that the proposed priority programs / activities must be based on the following strategic documents: the National Strategy for Accession to the European Union, the National Integration Program, Poverty Reduction Strategy, Public Administration Reform Strategy, Sustainable Development Strategy, priorities of the European Partnership and other sector and intersectors strategies.

Programming, i.e.  project proposals identification phase will be made on sectoral basis, with the ministries and special organizations established under the Law on Ministries, departments of the Government, the National Bank of Serbia and the National Assembly as the key partners for the Ministry of Finance in defining the priorities for funding from donor funds. Ministries will be providing coordination and consultations with all interested parties (organizations, institutions) within their jurisdiction, and propose projects of these organizations for funding from international aid, as authorized proposers.

Activity plan in the field of programming international assistance in 2010:

The Serbian Government will adopt the document "Needs of the Republic of Serbia for International Assistance in the period 2009-2011” which is the starting point for programming-identification of project proposals. The document shall be presented to the donor community.

National IPA Coordinator (NIPAC) shall inform the representatives of Inter-sector project groups for programming of EU funds on the important issues for the IPA programming process.

Ministry of Finance shall organize a working meeting with representatives of Inter-sector working group for coordination of humanitarian and development assistance and with other authorized project proposers in order to further explain the process of assistance programming under this Action Plan, as well as the form for submission of draft project proposals. Authorized proposers of the draft proposals are: competent ministries and special organizations, departments of the Government, the National Assembly of Serbia, and National Bank of Serbia.

Ministry of Finance organizes meetings with representatives of competent ministries as appropriate, in order to define the list of priority project proposals for international assistance, implementation of which is supposed to start in 2011  and 2012, based on: The document “Needs of the Republic of Serbia for International Assistance in the period 2009-

2011", Information on the expected donors’ funds, which is an integral part of this Action Plan, containing

information on the expected volume of donor funding in the next three years, by donors, as well as sectors to which the funds will be directed, a strategic basis and procedures for assistance approval and implementation,

(Co)financing ability from its own resources, Information on the planned borrowings from international financial institutions, in order to provide

possible technical assistance in preparation of project documents, monitoring project implementation, etc.

Information on projects that have been nominated / approved in the meanwhile for financing from the international assistance (it should be especially taken into account the prospective projects for funding from the IPA for 2009 and the 2010 if not included in the document “Needs of the Republic of Serbia for International Assistance in the period 2009 - 2011").

Authorized project proposers shall submit to the Ministry of Finance identified drafts of project proposals, including proposals of donor to which a proposal should submitted. Drafts of proposals shall be submitted and ranked according to priority and in writing and signed by the Minister or State Secretary. Authorized applicants shall confirm in writing that the submitted drafts of project proposals were prepared in accordance with the established form. Authorized applicants shall confirm that the proposed draft project proposals do not overlap with projects in progress or projects that have already been implemented. Authorized applicants shall confirm whether the draft project proposal was submitted for consideration to another donor or is considered within the national resources funding. The submitted draft project proposals shall be entered in ISDACON information system by the project proposer-

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member of Inter-sectors working group for coordination of humanitarian and development assistance or institutions of project beneficiaries, both in Serbian and English. Instructions for entering information on a draft project proposal in the information system are given as an Annex to this Action Plan.  For all draft project proposals entered as priority in ISDAKON IS during the programming process in recent years, and not approved or not fully secured for the funding, it is necessary to confirm in writing if they remain as priority for international assistance in 2010. For these projects it is needed to confirm in ISDAKON information system that proposal remains a priority in the process of programming in 2010, and to enter any amendments of or supplements to the draft of the project proposal, in accordance with the instructions for entering information on the draft project proposal in the information system. Competent ministries, special organizations, departments of the Government, the National Assembly and National Bank of Serbia shall submit draft project proposals directly to the Ministry of Finance. Other proposers shall submit the project proposals through the competent ministry.

Technical evaluation of the draft project proposals (i.e. assessment of compliance with the prescribed format / Instructions for entering the draft proposals) entered in ISDACON Information System shall be conducted by the Ministry of Finance / Department of programming and management of EU funds and Development Assistance, according to the following criteria: a) adherence to the prescribed form for entering the draft project proposals, b) a clear description of objectives, results and activities, c) the proposed draft project proposal does not overlap with projects financed by other bilateral and multilateral donors, nor with the projects financed from national resources, d) beneficiary of the draft project proposal the project is clearly defined, e) the strategic framework of the project corresponding to the selected target donor. Notification of formal shortcomings of the proposed project, as well as amendments to the draft project proposals by the authorized proposers, in the case of formal shortcomings, shall be done electronically, in accordance with the Instructions for entering information on the draft project proposals in the information system. Given that the form has provided defining the targeted donor for funding of the proposal, the Ministry of Finance during the technical evaluation of projects, shall estimate whether the projects selected for funding from the IPA funds are eligible for funding from these sources (if not, it must be clearly stated as a comment in the technical evaluation of the project). If the project is approved by the Ministry of Finance and EU has been stated as a target donor, this means that the project is acceptable for application for IPA funding. By confirming the draft project proposal which has been entered in ISDACON IS by the Ministry of Finance, it becomes visible in the system and to external customers.

Authorized project proposers shall determine the list of project proposals for funding from the IPA in 2011, ranked according to level of priority, based on technical evaluation of projects assessed by the Ministry of Finance as eligible for funding from the IPA funds. Project proposals such established for further consideration for funding from the IPA funds, shall be supplemented by specific information in the information system in accordance with the Instructions for entering information on the draft project proposals in the information system.

Ministry of Finance shall organize a meeting of the Group for evaluation of projects for the IPA, which according to defined criteria (Format for the evaluation of the draft project proposals submitted for IPA funding) assessing the draft project proposals and making a list of projects proposed for financing from the IPA in 2011, which is subject to further consideration at meetings of inter-department project groups.

The list of draft project proposals for funding from the IPA in 2011, at the suggestion of inter-department project groups shall be adopted by the Commission for the programming and management of EU funds and Development Assistance.

Drafts of project proposals shall develop into project proposals by the authorized projects proposers. NIPAC shall deliver Delegation of the European Union the final proposals for the IPA in 2011 from the

list adopted by the Commission for the programming and management of EU funds and Development Assistance.

Ministry of Finance in cooperation with competent ministries and other institutions being authorized projects proposers, as appropriate, shall organize donor meetings by sectors, in order to present the objectives and priority proposals for funding from international assistance in these areas.

Ministry of Finance will continue the communication with the donor community about the possibilities of funding the project proposals, preparation of project proposals in accordance with the procedures, forms and terms for individual donors, and will coordinate and inform authorized project proposers about the possibilities of financing the projects.

3. PROCESS OF REPORTING ON IMPLEMENTED INTERNATIONAL ASSISTANCE

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Reporting on international assistance implemented in Serbia is done on an annual basis, for the previous year. Ministry of Finance makes these reports regularly during the first quarter of the current year for the previous year. The basis for compiling the report is: ISDACON information system (a unique database of the Government on international development assistance to the Republic of Serbia) and analysis of movement of international aid made at the Ministry of Finance.

From the point of their contents, reports include: the context and the main political and economic events in the observed year, the level of international assistance, the structure and trends, review of international assistance by sectors, mechanisms for coordination of international assistance and improving the programming of assistance and its effectiveness, future activities and challenges (including a review of the assistance implementation by development partners and sectors).

The purpose of the annual report on international assistance, in addition to informing the Government, the National Assembly, government institutions, donor community and the general public on the developments of international assistance and its contribution in achieving development goals of the country, is to point out the tendencies, advantages and weaknesses in order to manage and use more effectively these funds in the future years.

Activities in regard to reporting on implementation of international assistance in 2010:

Ministry of Finance shall make the report on the implementation of international assistance to Serbia in 2009, based on the information system ISDACON and reports of competent ministries on the implementation of assistance within the department.

Ministry of Finance shall report to the Government of the Republic of Serbia as information and shall present it to the donor community.

Ministry of Finance shall begin activities in preparation of the Report on the implementation of international assistance in 2010: collect information on international assistance in 2010 from the representatives of the donor community; update database (ISDACON Information System).

4. INSTITUTIONS INCLUDED IN THE PROGRAMMING PROCESS AND THEIR ROLE

International assistance programming process defined under this Action Plan includes the active participation of the following institutions:

a) Office of the Deputy Prime Minister

Deputy Premier for European integration was appointed to the position of the National IPA Coordinator whilst Department of Programming and Management of EU funds and Development Assistance of Ministry of Finance for Secretariat of National IPA Coordinator under Conclusion of the Government No. 05: 119-2821/2007 as of 31 May 2007. The role of NIPAC (NIPAC abbreviation shall include the role of the NIPAC Secretariat) is to provide overall coordination of assistance from the IPA program. In addition, the Office of Deputy Prime Minister participates in the work of the Group for the projects evaluation.

b) Ministry of Finance / Department for programming and managing EU funds and Development Assistance

Ministry of Finance, among other things, is responsible for coordination of activities relating to planning, provision and use of grants, European funds and other forms of development assistance from abroad, manages and monitors the programming of development assistance, in terms of carrying out the necessary technical and administrative tasks, and ensuring coordination and consultation of all parties involved. Ministry of Finance initiates and coordinates the process of drafting / reviewing the document "Needs of the Republic of Serbia for International Assistance in the period 2009-2011”, which is the starting point in the international assistance programming. The Ministry of Finance is also preparing a manual on the process of programming for the authorized project proposers, including the form of draft proposals and Information on the expected international assistance in the period 2010-2012. In this regard, the Ministry of Finance shall provide the competent ministries with information on the expected volume of assisstance,

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priority sectors, as well as donors’ procedures for approval and implementation of projects that could improve the planning and budgeting activities in these institutions. Maintenance of sectoral consultative meetings in order to identify priorities, formulating draft proposals, determining the list of priority project ideas for funding from the international assistance will be organized by the Ministry of Finance, as well as sectoral consultative meetings with representatives of the donor community, as appropriate, and where would draft project proposals be discussed in terms of potential improvements and their funding. Ministry of Finance will provide assistance to representatives of relevant ministries in the formulating draft project proposals and provide necessary training to use ISDACON information system. Ministry of Finance shall provide communication with representatives of donor community, regarding informing them on the process itself, the availability of information on project proposals, participation in consultative meetings, and so on. Ministry of Finance develops forms for the assessment of the draft project proposals and evaluation of project proposals for funding from the IPA 2009, as well as participation in the group for their evaluation.

The co-ordination with relevant sectors competent for the budget during the programming process is conducted within the Ministry of Finance, in terms of possibilities for co-financing from the national budget, in order to prevent overlapping and duplication of projects to be financed from the national budget and other issues related to providing co-financing .

c) Competent ministries and special organizations, departments of the Government, the National Assembly and National Bank of Serbia

The role of the competent ministries, primarily through their representatives in Inter-sectors working group for coordination of humanitarian and development assistance, in the process of programming assistance involves setting priorities, formulating draft project proposals in the required format, the prioritization of proposed project ideas for funding from the international assistance resources, their entering in ISDACON information system, active participation in the sectoral consultative meetings as well as providing coordination and involvement of all relevant institutions under their jurisdiction in the process.  Competent Ministries participate in the development of attachment to the document "Needs of the Republic of Serbia for International Assistance" and referring to the areas under their jurisdiction. Also, special organizations, departments of the Government, the National Assembly and National Bank of Serbia shall determine the priority project proposals for funding from the international assistance, formulate draft project proposals in accordance with the instructions, enter them in ISDACON information system, and actively participate in sectoral consultative meetings.

d) EU Integration Office

The main role and responsibility of the European Integration Office in the process of programming is to provide the support during the IPA programming, as well as to indicate to the compatibility of the draft proposals and proposals with the National Programme for Integration (NPI), informs the Ministry of Finance and the relevant ministries on the implementation of NPI and the implementation of NPI requirements in the process of EU integration. The office provides its representative in the group for the evaluation of proposals for funding from the IPA 2011.

e) Other state institutions, local government authorities, public enterprises

The participation of other state institutions, local authorities and public enterprises in the process of international assistance programming will be done in coordination of the competent ministries, and their role primarily involves the definition of priority project proposals for funding from international assistance funds, and making project proposals and entering them in the ISDACON Information System, in agreement with the representatives of the competent ministries. Also, as agreed with competent ministries, these institutions will actively participate in sectoral consultative meetings.

f) Representatives of development partners / international donor community

Representatives of development partners participate in the process of programming by providing information on expected assistance in the next three years, as well as procedures, rules, and the priority areas of intervention. Representatives of the donor community will be informed through the Ministry of Finance about national priorities, and will actively participate in the consultative meetings at which priority project proposals within the given sectors will be discussed. Considering that the Ministry of Finance and competent

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ministries shall ensure the availability of the draft project proposals in advance through ISDACON information system, it is expected that donors present their action plans in such sectors at sectoral meetings, support the implementation of national priorities, ensure coordination and possibly joint funding, in order to effectively exploit the available resources.

g) Commission for the programming and management of EU funds and Development Assistance

Commission for the programming and management of EU funds and Development Assistance, established by the Government of the Republic of Serbia with the task to review the draft documents which will be presented to donors, suggests priorities in using resources of international development assistance, especially for the use of pre-accession funds of the European Union, considers and makes  proposals to the Government on other important issues related to the use and management of EU funds and Development Assistance. The Commission will meet in the programming process for approving a list of project proposals for IPA funding in 2011, as well as other issues related to international assistance programming.

h) Project groups for IPA programming

For the purpose of efficient and coordinated process of IPA programming, five inter-sectors project groups (hereinafter referred to as Project groups) were established: The project group for the economy and human resources; project group for local, regional and rural development, the project group for the development of infrastructure, project group for the public administration reform and project groups for the rule of law. Project groups are formed to discuss issues and provide suggestions to the Commission for the programming and management of EU funds and Development Assistance on specific issues related to the use of EU funds. In the process of programming development assistance resources, project groups will meet to make, within their competence, opinions and suggestions when defining priorities and project proposals for funding from the IPA 2011.

з) Project assessment group

Members of the Project assessment group are representatives of the Office of the Deputy Prime Minister, Ministry of Finance and the European Integration Office. Project assessment Group assesses the draft priorities and project proposals for funding from the IPA in 2011 in accordance with established criteria and application forms for the assessment of proposals. Project assessment Group is managed by a NIPAC representative.

PROGRAMMING INSTRUMENT FOR EU PRE-ACCESSION ASSISTANCE - IPA 2011 (COMPONENT 1) -

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DEFINITIONS

Phrases used in this Action plan shall mean as follows:

IPA - Instrument for Pre-Accession Assistance - financial instrument of the European Union, which provides funds to help countries in the EU accession process established by the Regulation on establishing the Instrument for Pre-Accession Assistance (Official Journal EC 1085/2006).

National IPA Coordinator: high-level official appointed by the Government to ensure coordination of development assistance, especially for pre-accession assistance provided by the European Union to countries in the EU accession process through the IPA and manages IPA programming process, so as to ensure coordination and balance of the national priorities with the priorities established by the EU under the Multi-Annual Indicative Planning Document for 2009-2011, the European partnership and functional connectivity of all participants in the process of IPA programming and development assistance funds, as well as to propose to the Commission for the programming and management of EU funds and Development Assistance2 and to the Government, the relevant documents setting out the national priorities in the field of development assistance.All operational activities related to IPA programming shall be implemented by the Ministry of Finance - Department for programming and managing EU funds and development assistance established to perform jobs within the field of National IPA Coordinator Secretariat under the above mentioned conclusion of the Government. Hereinafter abbreviation NIPAC also includes features a high-ranking national officials and the NIPAC Secretariat.

Centralized deconcentrated EU funds management system: projects contractor and controller over spending money from IPA funds is an institution of the European Commission (EU delegation) or institution which engaged by the European Commission and is located in the country of funds beneficiary (the European Agency for Reconstruction). This system shall be applied until the introduction of a decentralized system of funds management. 

Decentralized system of EU funds management: the gradual transfer of responsibilities in the funds management from the EU Delegation to the country – the funds beneficiary. It is mandatory system according to the EC Council Regulation establishing the Instrument for Pre-accession assisstnace.  

Multi-annual Indicative Financing Framework - MIFF: A document of the European Commission and shows indicative annual allocation of IPA resources by country-beneficiary and by IPA components.  

Multi-annual Indicative Planning Document - MIPD: European Commission document prepared for each country the potential candidates and candidates for membership in the European Union. The document is being prepared in the consultative process with relevant institutions of government of the country IPA beneficiary. The main instrument that sets priorities in terms of the EC's enlargement policy towards each country included in the process and allows the national priorities of European integration being brought in line with the priorities of the EC. The document defines the priorities in individual areas, as well as the indicative amount of financial resources for conducting established priorities during the three consecutive fiscal years.

The draft project proposal: a summary of the project in a form similar to logframe matrix under which general objective, the project purpose, expected results and activities, assumptions, objectively verifiable indicators and sources of information for testing were presented. The draft includes the assessment of the project value and the resources necessary for its implementation.

Project proposal: project proposal prepared in accordance with the format established by the EC (the so-called project FIS).

ISDACON IS: database, software support and network for monitoring international development assistance to the Republic of Serbia, administered by the Ministry of Finance.

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Interested parties: state agencies (departments of the Government, development agencies, special organizations, etc..)

whose activities have an impact on the scope of ministry, whether it is using the services of the ministry, participate in, cooperate with the department, directly or indirectly are influenced by the impact of the ministry;

Standing Conference of Towns and Municipalities (SCTM) Civil society organizations

1. INTRODUCTION

The European Commission (hereinafter: EC) has adopted the new Financial Framework for 2007-2013  establishing a new financial instrument for candidate countries (FYR Macedonia, Croatia and Turkey) and potential candidate for membership in the European Union (Albania, Bosnia and Herzegovina, Montenegro and Serbia). The legal basis of the instrument for Pre-Accession Assistance (IPA) was established in the Regulation of the Council of the European Union (EU Council Regulation no. 1085/2006) which was adopted on 17th of July 2006. Regulation has established the level of pre-accession assistance resources for the period 2007-2013 in the amount of 11.468 billion euro. Financial projections, within the multi-year indicative financing framework provides that the Republic of Serbia will have, for the National IPA program 189.7 million euro in 2007, 190.9 million euro in 2008, 194.8 million euro in 2009, 197.958 million euro in 2010 and  201.879 million euro in 2011. Regulation governing the implementation of the above is EC Regulation no. 718/2007 as of 12th of June 2007.

The legal basis for cooperation between Serbia and the European Union regarding the implementation of EU financial assistance is regulated by the Law on ratification of the Framework Agreement between the Government of the Republic of Serbia and the Commission of the European Communities on the rules for cooperation concerning EC financial assistance to the Republic of Serbia in the implementation of assistance according to the rules of pre-accession assistance instrument (IPA), ratified by the National Assembly on 26th of December 2007. (Official Gazette - International Treaties No. 124/07).

IPA has five basic components2:1. Support in the transition process and institution building,2. Regional and cross-border cooperation,3. Regional Development4. Development of human resources,5. Rural development.

Assistance through the IPA to candidate countries, as well as to potential candidates, should provide support in their efforts to strengthen democratic institutions and rule of law, European integration, public administration reform, economic reforms, increasing employment, education reform, respect human and minority rights, promoting gender equality, strengthening of civil society, promoting regional cooperation, achieving sustainable development and poverty reduction. Components 1 and 2 are intended for the potential candidates, while components 1 to 5 are intended for the countries candidates for EU membership.

Republic of Serbia, as well as other potential candidate countries for EU membership, shall be allowed to use resources for funding priorities, and /or programs / projects under the first two components.  It is also possible to use resources from the first component to fund programs / projects under the components three, four and five. The reason for this division is the difference in position in relation to EU membership, as well as the lack of appropriate national legislation, institutions and civil servants trained to manage all the components in accordance with EU rules, which are established through a decentralized system of management of EU funds.

EC requires from the country- IPA beneficiary to establish appropriate structures, improve the capacity of public administration and a clear definition of roles and responsibilities during the programming and implementation of the IPA, in order to effectively use pre-accession funds. In this regard it is necessary to determine the jurisdiction of certain institutions in the process of

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decentralized management and the Republic of Serbia should be prepared for taking responsibility for the management of EU funds at the time of EU accession.

2. STARTING POINTS, PRINCIPLES AND OBJECTIVES

Programming is the process of determining the priority programs / projects to be financed from IPA funds and is based on the cooperation of the competent state organs and institutions of the European Union.  IPA programming, on the side of the EC2, including setting priorities based on three main strategic documents, mutually complementary:

Enlargement strategy establishes long-term goals of the country for which the document was prepared and supported by EU funds. This document describes the current state of the EU enlargement process, gives a brief overview of the situation in countries that are in the process of accession and joining and states priorities and/or major challenges in such process. The enlargement strategy is made based on consultation with the government of the country for which the document is prepared.

European Partnership, which defines the general and sectoral priorities in the short term (1-2 years) and medium-term (3-4 years) level starting from the balance obtained under the annual report and the achievements realized in the process of integration into the EU. EP as an important instrument of EU policy directs the processes of reforms in Serbia until obtaining the status of candidate for membership when it will be replaced by Accession Partnership. It is important to note that all the priorities identified during the programming of EU funds have to meet the European Partnership priorities.

Multi-annual Indicative Planning Document is prepared in the consultative process with relevant institutions of government of the country- beneficiary of these funds. The document defines the priorities in individual areas, as well as financial resources for implementation of the established priorities during the three budget years. Multi-annual indicative planning document identifies the priorities of the European Union within the European Partnership priorities established for the Republic of Serbia, the main areas of intervention, as well as funds for their implementation.

These documents of the European Commission establish the necessary objectives, expected outcomes, prerequisites, as well as the allocation of funds per sectors / areas of assistance.  On the basis of these documents, project drafts and proposals are also prepared, and/or a list of projects to be financed from the annual package of EU financial assistance is established. List of projects approved for funding shall be determined in cooperation of national and EU institutions, and adopted by the European Commission, at the suggestion IPA committee composed of the EU Member States.

In addition to these documents, for further definition of priorities, Stabilization and Association Agreement should be taken into account, signed on 29 th of April 2008, determining the pace and direction of reforms in Serbia. Then, in particular EC-annual report on the progress of the Republic of Serbia within the Stabilisation and Association Process, as well as financial rules for the implementation of projects financed by the EU, which are of great importance for the formulation of project drafts and proposals.

In addition to the documents prepared by the EC, the proposal of national priority projects which could be financed from the IPA, must be consistent with national strategic documents, such as the National Programme for Integration of the Republic of Serbia into the European Union (NPI), Needs of the Republic of Serbia for International assistance, Public administration reform strategy, the Strategy for Regional Development, Poverty Reduction Strategy, the Memorandum on the Budget of the Republic of Serbia, Annual Action Plan of the Government and others.

Starting from the need to improve the capacity of public administration, clearly defined roles and responsibilities during the process of IPA programming and gradually prepare the Republic of Serbia for taking responsibility in the management of EU funds from the EC when entering the EU, the main objectives of this Action Plan are: a) that the use of funds for pre-accession assistance supports implementation of projects supporting goals and objectives defined in the Stabilisation and Association Process of the Republic of Serbia in the EU;

b) to establish principles, participants and their roles and responsibilities during the process of setting

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priorities and project proposals in line with the basic documents for the Programming (hereinafter referred to as IPA programming);

c) to define the relationships and responsibilities among the relevant institutions involved in the IPA programming process, especially noting the project preparation, evaluation and selection of proposed projects within the components of the transition and institution building;

g) to ensure use of uniform procedures in the IPA programming;

d) to improve the administrative capacities and increase the efficiency and effectiveness of the use of IPA funds through improved inter-ministerial coordination and cooperation;

f) to support the introduction of decentralized EU funds management system in the Republic of Serbia.

In the case of the interpretation of the provisions of the Action Plan, the interpretation of the National IPA Coordinator (hereinafter referred to as NIPAC) is binding. The initiative to amend the Action Plan can be initiated by the competent ministries, the Office for European Integration, EC and Delegation of the EU. The proposed changes and/or amendments to the Action Plan shall be submitted to the Government by NIPAC.

3. ROLES AND RESPONSIBILITIES

The realization of the objectives of this Action Plan requires clearly defined roles, responsibilities and activities during the process of IPA programming in order to successfully meet all the requirements of the identification of priorities and formulation of project proposals for funding from the IPA.

3.1 NIPAC roles and responsibilities

Under the Conclusion of the Government No. 05: 119-2821/2007 as of 31st of May 2007, Deputy Prime Minister for European integration was appointed to the position of the National IPA Coordinator, and Department of Programming and Management of EU funds and Development Assistance of the Ministry of Finance as the Secretariat of the national IPA coordinator.

The role and responsibilities of NIPAC / Secretariat of the national IPA coordinator in the process of IPA programming are:

а) to coordinate the EU funds programming and to act as the central institution for communication and coordination of EU funds towards the EC and EU Delegation;

b) to cooperate with competent ministries and other parties interested in identifying and establishing priorities as well as in formulating project proposals and draft proposals in the IPA programming process in accordance with the basic documents for the IPA programming;

c) to cooperate with competent ministries and other parties interested in the identification and determination of priorities and formulation of proposals for funding within instruments of multi-users IPA and Program for projects preparation (IPF) in accordance with the terms determined by the European Commission in Brussels.

d) in cooperation with the EC, Delegation of the European Union, relevant ministries and other parties interested in identifying and determining the priorities for programming of EU funds in the Republic of Serbia;

e) in cooperation with the Standing Conference of Towns and Municipalities (SCTM) and the relevant ministries to consult the local government and the Autonomous Province of Vojvodina in the identification and determination of priorities in the area of local development for IPA funding and other bilateral and international assistance;

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f) in cooperation with the Office for Cooperation with civil society consult civil society organizations in determining priorities for funding from the IPA

g) to cooperate with the Delegation of the EU2 and the relevant ministries in the distribution of IPA funds in accordance with established EU basic documents for the IPA programming;

h) submit a final list of proposals and projects established in the programming to Delegation of the European Union, and communicate with the Delegation of the EU on all matters relating to EU financial assistance provided to the Republic of Serbia;

i) signs annual financial agreement with the EC after its adoption by the Government;

j) in cooperation with the Delegation of the EU and the competent ministries and other competent institutions of the Republic of Serbia coordinate the preparation and review multi-year indicative planning document, as well as multi-year indicative financial framework;

 k) cooperate with Ministry of Finance in cases where it is necessary for projects financed by the EU ensured

necessary co-financing for the projects from the state budget;

l) supervise the process of programming, preparation and implementation of programs and projects aiming at improving the programming process, timely identification, removing and reducing potential problems in the programming and implementation of programs and projects;

m) report to the Government on the process of IPA programming, formulating and implementing projects;

n) inform the EC on the programming process;

o) in partnership with the EU Delegation, inform the public about the programs of EU assistance in the Republic of Serbia;

p) coordinate the participation of the Republic of Serbia in the Community programs and agencies of the Community;

q) coordinate other bilateral and multilateral donor financial assistance;

r) submit the EC and the EU Delegation request for re-directing the funds within the EU funded projects;

r) in cooperation with the Delegation of the EU establishes deadlines for certain activities during the programming process and at the same time inform about the terms and conditions for submitting draft project proposals and project proposals for the current program year;

s) publishes forms for drafting project proposals and project proposals, as well as deadlines, forms for evaluating the draft proposals on the website www.evropa.gov.rs (ISDAKON IS);

t) keep track of proposed, projects in progress and completed projects funded by the EU;

u) keeps track of the drafts and proposals of projects that are submitted in accordance with defined criteria for submitting project proposals for financing from EU funds;

v) perform technical evaluation and assessment of priorities and compliance with established criteria for all drafts and proposals and confirm that the proposed drafts and the proposals do not overlap with other bilateral and/or multilateral donor projects.

3.2 Role and responsibility of competent ministries

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In accordance with Article 21of Regulation on Principles of internal organization and job classification in the ministries, special organizations and agencies of the Government (Official Gazette RS, No. 81/07), the relevant ministries will form the unit for programming of EU funds that will be responsible for the IPA programming pursuant to this Action Plan.

Role and responsibilities of competent ministries during the programming process are to:

a) coordinate the programming process within the Ministry and other institutions related with the ministries and prepare draft project proposals and project proposals in the process of IPA programming;

b) inform interested parties within their scope of work on the process of programming and cooperate with them in creating draft project proposals and project proposals;

c) submit NIPAC the draft project proposals and project proposals prepared by the ministries and other parties interested within scope of work;

d) keep records of all prepared drafts and project proposals and update them in ISDACON information system;

e) perform pre-selection and evaluation of draft priorities and project proposals formulated in the ministries and other interested parties within its scope during the process of IPA programming prior to their submission to NIPAC;

f) after the selection and evaluation of priorities submit to NIPAC the report with an explanation of the selected and reserve proposals of the draft project proposals and project proposals and from the point of their competence, are concerned with the prevention of IPA proposals overlapping the projects that were conducted or are in progress and state whether the proposal has been submitted for consideration to another donor;

g) submit a report on participation in Community programs and agencies of the Community to NIPAC. The report shall contain a section on the financial cost-effectiveness of participation in these activities;

h) submit a report on participation in the process of multi-user IPA programming to NIPAC;

i) information NIPAC on the course of a programming process in accordance with the annual calendar of programming;

j) obtain a NIPAC opinion on the issue of financing from the IPA.

3.3 Role and responsibilities of EU Integration Office

The main role and responsibility of the European Integration Office in the process of IPA programming is to support the implementation of NIPAK-specific activities envisaged under the point 5 of this Action Plan. European integration Office particularly:

a) control compliance of the project drafts and proposals with the National Program for Integration of Serbia into the EU (NPI);

b) Inform NIPAC on the direct goals and financial needs for the implementation of the Stabilisation and Association Process;

c) inform NIPAC on NPI implementation and define the subsequent priorities;

d) coordinate the implementation of the twinning (twinning is a special EC instrument for cooperation with countries not yet EU members. Twinning is always a common project and therefore differs from the classical project of technical assistance of member states to country-user) and TAIEX projects;

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e) inform NIPAC on compliance of annual programs of EU assistance with needs to implement NPI.

3.4 Role and responsibility of Ministry of Finance

The role and responsibility of the Ministry of Finance (Department competent for preparing the budget) is to:

a) cooperate with NIPAC in terms of co-financing from the national budget;

b) provide recommendations on draft project proposals and project proposals on the possibility of their co-financing from the national budget and other public funds;

c) prevent overlapping and duplication of projects financed from the national budget or other public funds;

4. ROLE OF APPROPRIATE BODIES

4.1 Commission for programming and managing EU funds and Development Assistance

In accordance with the Decision on establishing the Commission for programming and managing EU funds and Development Assistance2, the task of the Commission is to: review draft documents that will be presented to donors, suggest priorities for use of resources of international development assistance, especially for the use of pre-accession EU funds, discuss and make proposals to the Government on other important issues concerning the use and management of EU funds and Development Assistance

4.2 Inter-sectors project groups for IPA programming

In accordance with Article 5 of the above-mentioned Decision on establishing the Commission for programming and managing EU funds and Development Assistance, Minister of Finance established a working group to discuss issues and provide suggestions to the Commission on certain issues related to the use of EU funds.In this respect, the purpose of efficient and coordinated process of IPA programming, five inter-sector project groups (hereinafter referred to as a project groups) shall be established:

- Project group for economy and human resource development;- Project Group for local, regional and rural development,- Project group for the development of infrastructure;- The project group for the reform of public administration;- Project group for the rule of law.

The composition of inter-sector project groups shall be determined by the Minister of Finance.

The tasks of inter-sectors project groups for IPA programming are:1. Making recommendations on priorities for the annual IPA programming;2. Adoption of the annual priorities for IPA programming;3. Identification of project proposals during the IPA programming;4. Assessment of the objectives of the project draft proposals and their compliance with the priorities

defined in the National Programme for Integration (NPI) and other national strategic documents and the priorities defined in the European Partnership and the Multi-Annual Indicative Planning Document of EC in the course of the annual IPA programming, and an assessment of capacity for their implementation;

5. Establishing a list of draft project proposals for funding from the IPA;6. Mutual cooperation in making drafts and project proposals;7. Identification of deficiencies and problems during the process of IPA programming and proposing

measures to the competent institution(s) for their elimination;

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8. Analysis of the implementation of priorities, and if necessary, proposing new during annual audits of the Multiannual indicative planning document, Need of the Republic of Serbia for international assistance as well as taking into account the goals and objectives derived from NPI and other national strategic documents;

9. Consider the possibility of proposed projects national co-financing;10. Analysis of projects in the process of implementation and their connection with the previously

approved projects and projects proposed for implementation in the future;11. Implementation of measures proposed by the Commission for the programming and management of

EU funds and Development Assistance and reporting on measures taken and activities;12. Regular reporting of the Commission for programming and managing EU funds and Development

Assistance on implementation of its activities and the situation in the sector;13. Mutual cooperation in order to coordinate and exchange experiences in the work, preparing

recommendations and opinions on the improvement of project groups.

In accordance with the above tasks, project groups can propose national IPA coordinator the appropriate measures and activities contributing to the improvement of planning, achieving program objectives defined under the European Partnership, Multi-Annual Indicative Planning Document, the document Needs of the Republic of Serbia for International Assistance, the National Program for Integration (NPI ) and other national strategic documents and ensure the efficiency and rational use of available resources.

4.3 Project assessment group

Members of the Project assessment Group are representatives of the Office of the Deputy Prime Minister, Ministry of Finance (Department of Programming and Management of EU funds and Development Assistance), and European Integration Office. Project assessment Group evaluates priorities of the draft project proposals in accordance with established criteria and form for the assessment of the draft project proposals. Project assessment Group is managed by a NIPAC representative.

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5. PLAN OF ACTIVITIES DURING THE PROCESS OF IPA PROGRAMMING

5.1 Authorized proposers of project ideas and proposals

Depending on the manner of submission of draft proposals and proposals to NIPAC, the authorized proposers are:

Competent ministries; Special organizations; Government departments; National Assembly; National Bank of Serbia (hereinafter referred to as: NBS).

Authorized proposers submit proposals and draft proposals to NIPAC directly.

Competent ministries provide coordination and consultation in the process of IPA programming with all interested parties within its scope of work and cooperate with them in drafting proposals and project proposals.

In the area of local development, coordination and consultation in the process of programming with units of local governments and the Autonomous Province of Vojvodina are provided in cooperation with the SCTM and competent ministries.

Consultation and coordination in the process of programming assets, intended for non-government sector, will be provided through direct consultation with NGOs and the Office for Cooperation with civil society.

All interested parties deliver draft proposals and proposals only with the consent and through the competent ministry.

5.2 Beginning of the process of IPA programming in 2011, the preparation and submission of draft project proposals and modifications of project proposals prepared during the process of IPA 2011 programming

NIPAC instructs the authorized projects proposers on issues important for the IPA programming process. NIPAC, based on the previously performed analysis of all relevant strategic documents, previously approved projects from EU funds and in consultation with the Delegation of the EU, other bilateral donors and other interested parties, instructs the project proposers on priorities for funding from the IPA.  NIPAC notify the authorized projects proposers on the commencement of the submission of draft project proposals in the programming process and sets the deadline for the submission. The relevant ministries adequately inform the institution from its scope of work on the beginning the process of programming.

NIPAC publish forms for submission of drafts and project proposals, terms and conditions under which the draft and the project proposals are submitted, as well as the evaluation criteria under the Instruction for programming and reporting on international assistance in 2010, on the web site ISDACON (www.evropa.gov.rs) and, if necessary, in other appropriate manner.

NIPAC and European Integration Office provide support to authorized project proposers during the process of identifying priorities and the modification of project proposals prepared during the process of IPA programming 2011. NIPAC and European Integration Office provide technical assistance to authorized project proposers in the process of formulating the draft proposals at their request.

Draft and project proposal submitted by the competent ministry, as well as in the case when the competent ministry supports the draft and project proposal of certain institutions, the Ministry submits to NIPAC along with the signature of the Minister or State Secretary. Other authorized proposers of drafts and project proposals submit to NIPAC along wiht the signature of the head of the institution / organization.In the letter, under which they submit draft project proposals, ranked by priority, authorized project

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proposers confirm that the submitted draft project proposals were prepared in accordance with the established form, that the proposed draft project proposals do not overlap with projects in progress or projects that had already been implemented and state whether the draft project proposal was submitted for consideration to another donor or is being considered within funding from national resources.Draft and project proposal are submitted to NIPAC in writing and in electronic form, i.e. by  entering the draft and project proposal in accordance with Instruction for entering draft and proposed projects in the database ISDACON (www.evropa.gov.rs) in Serbian and English. Authorized project proposer is responsible for providing the translation of the draft and project proposal in the English language.

5.3 Technical assessment of draft project proposal

NIPAC performs technical assessment of the draft project proposal (i.e. assessment of the fulfilment of basic formal criteria for the design of the proposal). The technical assessment of the draft project proposal will be assessed according to the following criteria:

a) Adherence to the prescribed format for draft project proposals submission;

b) Clear description of objectives, results and activities;

c) Measurability and importance of indicators for achieving the objectives and results;

d) That the draft project proposal does not overlap with previous projects financed by CARDS / IPA or by other bilateral and multilateral donors, nor with projects funded from national resources;

e) The beneficiary of draft project proposal has been clearly defined.

If the draft project proposal stipulates the formal shortcoming, NIPAC recommend authorized project proposer to remedy the deficiencies within a specified period.

Drafts project proposal proposed to be financed from IPA shall be further developed in the format of the logic matrix (logframe) within the period determined by NIPAC.

5.4. Establishing the list of draft project proposals

Ministries submit NIPAC the modified draft project proposals in accordance with the procedures specified in point 5.2 and 5.3. of the Action Plan.

Project assessment Group evaluates proposed projects in accordance with the format for the draft project proposals evaluation (Annex 4 to the Action Plan) and sets out a list of draft project proposals for funding from the IPA. The list of project proposals is submitted to inter-sectoral project groups for consideration.

List of project proposals shall be submitted to the Commission for the programming and management of EU funds and Development Assistance to the approval and/or possible amendments or supplements.In accordance with the rules of deconcentrated centralized EU funds management system in countries that are potential candidates for EU membership, a final decision on projects to be financed shall be reached by the European Commission.

NIPAC conduct consultations with the Ministry of Finance on project proposals in order to establish recommendations on the possibility of co-financing of specific projects from national resources.

5.5. Making project proposals

Authorized proposers of draft project will detail proposals that are in the list in the project proposals (project FIS) within the period determined by NIPAC.

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During the preparation of project proposals, NIPAC provides technical support to authorized proposers at their request, and pursuant own estimates. Project proposals shall be submitted to the NIPAC in the English language in accordance with the procedure prescribed under paragraph 5.2 of the Action Plan. Authorized Project proposers are responsible for the translation of project proposals in English language.

5.6. Amended project proposals

In the case of formal shortcomings in project proposals, NIPAC notify the authorized project proposers to eliminate established shortcomings and set a deadline for their elimination. NIPAC make suggestions to proposers for improvement in the quality of project proposals and provide technical assistance during the process of amending project proposals.

5.7. Consultations with EU Delegation

NIPAC conduct consultations with the Delegation of the EU on the draft and proposed projects.

EU delegation actively participates in meetings of inter-sectoral working groups. EU delegation submit comments and suggestions on draft project proposals and project proposals submitted by the NIPAC. If necessary, the EU delegation is able to identify and recommend additional priorities not included in identified draft project proposals. After delivering the opinion, NIPAC and European Integration Office consult with the authorized project proposers in order to include the opinion in the draft project proposals or preparation of new draft project proposals.

NIPAC in cooperation with the European Integration Office and the relevant ministries presents a list of proposals to the Delegation of the EU.

EU delegation evaluates the submitted project proposals in accordance with its rules.

EU delegation submits comments, proposals and suggestions on the proposals formulated, which are presented to authorized project proposers and begin the final phase of the programming process

5.8. Use of language

Proposals and other documents related to the IPA shall be submitted to the EC Delegation in English. Formats for writing draft project proposals, project proposals and the format for the assessment are published on the ISDACON web address (www.evropa.gov.rs) in Serbian and English. In case of non compliance of the Serbian and English versions of the documents submitted to the EC Delegation, the English version shall prevail.

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Activities Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Programming and reporting

1.Development of the Action Plan for the programming and reporting on international assistance in 2010

2.Development and adoption of the document “Needs of the Republic of Serbia for international assistance in the period 2010-2012”

3.

Donators’ meeting for the purpose of presenting Annual report on international assistance implementation in 2008

Programming4. Gap analysis by sector within the IPA 2011

programming process

5. Consultations with the EU Delegation about IPA 2011 financing priorities

6. Determining priorities for financing from IPA 2011 funds by the group for project appraisal

7. Consultations with civil society on IPA 2011 financing priorities

8.

Consultations with local government units, AP Vojvodina and line ministries on PA 2011 and international assistance financing priorities in the area of local development

9.Consultations of ISWG for IPA programming, civil society, EU Delegation and bilateral donors on priorities for IPA 2011 financing

10. Presentation o f the programming provcess to authorised project proposers

11.

Consultation meetings with authorised project proposers and determining the list of priority projects for financing from 2010/11 international assistance funds.

12.Submittion of draft project proposals for financing from 2010/11 international assistance and IPA 2011 funds (entry into the ISDACON IS)

13. Technical appraisal of the project proposals

14. Amendment of project proposals in accordance with the technical assessment

15.

Preparation of draft project proposals (drafting logframe martix – logframe) that are proposed for financing from IPA 2011 funds (in accordane with point 9)

16. IPA project appraisal group meeting (for defining the list of projects)

17.Consultations of ISWG for IPA programming and the EU Delegation and the defining of the list of projects for financing from IPA 2011

18. Adoption of the list of IPA project proposals by the

CALENDAR FOR PROGRAMMINFG ANDF REPORTING ON INTERNATIONAL ASSISTANCE IN 2010 ANNEX 1

Prohramming Committee

19. Drafting of project proposals to be financed from IPA 2011 funds (Project Fiche)

20. Consultations with civil society on the drafting of project proposals for financing from IPA 2011

21. Consultations of ISWG and the EU Delegation on drafting of project proposals (Project Fiche)

22. Submittion of project proposals for financing from IPA 2011 to the EC

23. Organizing of sector donor meeting in accordance with needs and agreement with line ministries

24. Gathering of feedback from donors on support fot priority projects

25.Drafting of project proposals ion accordance with procedures and formats prescribed by individual donors

Reporting26. Drafting of IPA 2011 programming report

27. Drafting of Annual report on the realization of international assistance in 2009

28. Updating of the data base (ISDACON) with data on the realization of donations in 2010

Training29. Process of programming international assistance

and identification of project proposals 30. Project cycle management and logframe drafring 31. Training for IPA project fiche drafting

32. Monitoring and evaluation of projects and programmes

33. Training for preparation of projects for financing form Norwegian development assistance funds

34.Training for drafting of budget and defining indicators for project proposals for Norwegian development assistance

35. Procedures for implementation and reporting on projects financed from Norwegian assistance funds

Monitoring effectiveness of international assistance36. Measuring indicators for monitoring effectiveness of

international assistance

37. Drafting the Report on improvement of efficiency of international assistance

Activities exclusively refer to programming of IPA funds

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ANNEX 2

INSTRUCTIONSFOR ENTERING INFORMATION ON DRAFT PROJECT PROPOSAL

FOR FUNDING FROM FOREIGN DEVELOPMENT ASSISTANCE RESOURCESIN INFORMATION SYSTEM ISDACON

This instruction shall specify in details entering project proposals for funding from the foreign development assistance resources in ISDACON Information System.

ISDACON information system is a unique database on government grants and other forms of development assistance available to the Republic of Serbia.

ISDACON information system is a bilingual database. The information contained in the database can be consulted or entered in Serbian and English.

The data to be entered in ISDACON information system by the competent ministries and other authorized proposers shall be entered in the Serbian language in Cyrillic alphabet and in English, the Latin alphabet.

After accessing to the web address at: www.evropa.gov.rs, user shall access to a public site (internet address) where all data are available for reviewing.

A user must have a user name and password (hereinafter referred to as a registered user) to enter data in ISDACON information system.   Entering data into information system ISDACON is possible only if the previously registered user logged in under his/her username and password. 

Ministry of Finance (hereinafter referred to as MFIN), as the institution responsible for the administration of ISDACON database, grant the user name and password to the representative of the relevant ministry or other authorized proposer (hereinafter ISDACON contact person) and inform them about it. All registered users can change the initial password, which the users are advised to do, because each work of a particular registered user is registered on the server and can be followed by a set of data that the user has changed, and/or entered in the system. 

ISDACON contact person, as a registered user of ISDACON information system, may:  Carry out a review of all data on projects, grants, organizations, and create reports from the system; Enter and edit information on the project proposals for funding from the development assistance resources, which

have been entered in ISDACON information system under that username (registered user cannot edit the data entered in the system by other users).

Prerequisite for entering projects

It is envisaged to enter projects by using the Microsoft Internet Explorer version 6.0 and newer.

ACCESS TO DATABASE/LOGGING IN

After accessing the public site (internet address www.evropa.gov.rs), to log in, the uses need to enter his user name and password, assigned by MFIN, in the fields provided for this (Figure 1) and to choose the option .

Figure 1 – ISDACON –Appearance of the home window of public site

After the registered user has entered his user name and password and access to database, home window with different

options shall appear, one of which is the option .

Figure 2 – ISDACON –Appearance of home page of database, after the user has logged in

BROWSING PROJECTS

By moving the cursor to the option , which is a part of the main menu of database home page, drop down menu opens with options to brows, approve, modify, evaluate, select and rank the projects.By selecting the option , access to the part of database with PROJECTS is granted, providing reviewing and/or browsing all projects entered by competent ministries or other authorized proposers (Figure 2).

Figure 3 – ISDACON – Projects – home window

Browsing the draft project proposals can be done by entering: name and / or project code or selecting a filter brows results - according to status of the project, an area in which the project belongs, Sector (OECD code), development partners, target donor, interested donor and the year (program cycle).

After selecting brows option , the requested project will appear in the database (if the search was performed by code or name) or projects (if the search is carried out by one of the ways to filter search results) that meet the set criteria.

Selecting options in the top left corner , opens the electronic form in which the registered user is entering data on project proposals.

PROJECT ENTERING

CREATING THE PROJECT

The project is a set of measures and activities undertaken to achieve preset goal. From the point of ISDACON information system, projects are defined as a set of specific target-oriented activities affecting the realization of long-term and short-term objectives of general public interest, as defined under sectoral and inter-sectoral strategic documents.

When entering details on the draft project proposal, it is started by typing the name of the project (see Figure 4). When entering, the name of the project can be freely formulated, but it is necessary to match activities and/or project objectives to be met. It is desirable that the name of the project is as concise as possible.

After entering the project name, enter HISTORY (description of the previous situation in specific area) AND ADEQUACY. The current state of the sector (or sectors) covered by the project proposal and primarily related to the displayed features of (more) sectors are to be entered in this field: when analyzing the problem, a brief description of the existing problems in the sector (or several sectors) should be entered to which the project proposal attempts to address and the causes of their occurrence, analysis of potential constraints and challenges to address identified problems, show the effects of "zero-scripts" (in the case of failing to act). In the section that will apply to the analysis of target group, it is necessary to specify which institution, or more of them are direct beneficiaries of the projects. Regarding the institutional framework, there should be stated which institutions, pursuant to legislative framework, shall be responsible for implementation of project activities. In the section covering the institutional capacities, absorption capacities of the institutions implementing the proposed project are described (the existence of appropriate organizational unit for project implementation, a sufficient number of employees in the institution, etc.). In the context of the project, it is also important to mention the experience gained regarding the projects being implemented or have been previously implemented and how such project continuous already undertaken activities.

The next task when entering details about the project relates to the entry of STRATEGIC AND LEGAL BASIS for the implementation of the project (see Figure 4). In this section it is necessary to enter data on the strategic priorities of the Republic of Serbia, stated under the strategic documents of the Government, as well as statutory and other legal acts constituting the institutional basis for the project implementation.In order to have a proposal of good quality, it is necessary that representatives of institutions that will prepare a project proposal are thoroughly acquainted with the above-mentioned documents and legal enactments. In the column for entering, the items are already present: the link with Multi-annual program document (MIPD), European Partnership (EP), the Stabilization and Association Agreement (SAA), the strategy of donors and the ling with national strategy under which the user needs to enter the appropriate contents.

Figure 4 –ISDACON - Project

Entering the data relating to the details of the project proposal is done by typing text into a blank section of the form, marked for the entry of such data.

NOTE: All text boxes, relating to the details of the project proposal are mandatory! The project proposal will not be accepted by ISDACON information system if these fields are not filled in with the appropriate text. The system will notify registered users that the project proposal cannot be entered, if any of the mandatory fields in the application is not filled with in text.Project name can contain a maximum of 250 characters, and other fields that can be seen in Figure 2 accept a maximum of 8000 characters.

Data are entered in Serbian (Cyrillic script) or English or both languages mentioned.In case of any errors when entering data, it will be marked with a red * sign beside the field.

LOGFRAME MATRIX

After entering information on the project details, it is necessary to fill LOGFRAME MATRIX. A logic matrix is filled in a language that was chosen. In order to fill in a language that is not selected, it is necessary to press the button that is located under the lograme matrix on the right side (see Figure 5). After that, data are entered in that language.

Figure 5 –ISDACON – Logic matrix

A logframe matrix approach is an analytic process and set of instruments used as support to the planning and project management according to the defined goals. It provides a set of mutually matching concepts used as part of the iterative process providing a structured and systematic analysis of the project or program ideas.

Logframe matrixGeneral objective Measurable indicators Verification sources Assumptions

The importance of the project for society in relation to long-term benefits it has for both users and other groupsSituated on the highest hierarchical level, and describes the future state of the changed situation or particular project striving to achieve. Expressed as a desired situation changed, not as a processNot achieved by the project itself

It describes the project objectives in the operational measurable manner and set standards that must be achieved in order to achieve the objective, purpose and result.Express the Quality, Quantity, Time frame and Target group and Evaluation place.Respond to the question: How do we know that the planned was actually accomplished? How do we measure success?

Sources of information means and methods used in collecting and reporting information in relation to the indicators and give to inspection when evaluating the results of the project

External factors out of control of project which could influence relationship between purpose and goal and influence the advancement or success of the project itself

Specific goal Measurable indicators Verification sources Assumptions

Describes desired project effects (project purpose), achievement of direct objective for direct beneficiaries as clearly defined condition in the future.

Clearly establishes operating purpose of the project, i.e. Changed situation or conditions expected to result from project activities and should point to direct reason to apply the project.

Always a part of broader context i.e. generated from general objective and representing is logic continuation.

It describes the project objectives in the operational measurable manner and set standards that must be achieved in order to achieve the objective, purpose and result.

Express the Quality, Quantity, Time frame and Target group and Evaluation place.

Respond to the question: How do we know that the planned was actually accomplished? How do we measure success?

Sources of information means and methods used in collecting and reporting information in relation to the indicators and give to inspection when evaluating the results of the project

External factors out of control of project which could influence relationship between purpose and goal and influence the advancement or success of the project itself

Results Measurable indicators Verification sources Assumptions

Final result of certain project activity.

It describes specific services of certain project activity.

Precisely defined so could be connected with indicators that way showing time of their execution.

Sorted in such manner to follow activities order.

It describes the project objectives in the operational measurable manner and set standards that must be achieved in order to achieve the objective, purpose and result.

Express the Quality, Quantity, Time frame and Target group and Evaluation place.

Respond to the question: How do we know that the planned was actually accomplished? How do we measure success?

Sources of information means and methods used in collecting and reporting information in relation to the indicators and give to inspection when evaluating the results of the project

External factors out of control of project which could influence relationship between purpose and goal and influence the advancement or success of the project itself

Activities Input parameters Verification resources/ expenses

Specific tasks (operating program) to be taken during project realization to achieve the results.

Grouped pursuant to appropriate results and directly contributing to their implementation.

Shown as process not as changed condition

Representing basis for budget defining

Basic means to be provided and applied: technical assistance, technical equipment, works

Besides expenses and budget to be provided

TARGET DONORS

After filling in the logic matrix, the next task in the process is entering data relating to the strategic framework of donor estimated that, in accordance with its past activities and strategic documents for the Republic of Serbia (if any), could approve the draft project proposal for funding. In section TARGET DONOR AND EXPLANATION, enter the names of potential donors who the project proposal is primarily intended for, as well as the reasons why the project proposer considers that the project could be supported by specific - targeted donors (or more of them).  It may be the same or similar projects already implemented or under implementation through donor support, then general interest of donors in the sector in which the project is implemented and which, through their development programs, has already been supporting financially, or any other similar reason (see Figure 6).

In order to enable project browsing per target donors, and/or to provide the donor with easier access to the project for which his support is expected, it is necessary to mark it in the field Non-selected donors, located on the right side of the

screen (see Figure 6). After labelling the appropriate donor, it is necessary to click the button , after which the donor appears in the section Selected donors, on the left side of the screen. It is possible to move several donors in the field Selected donors. In the event that the donor was moved by mistake to the targeted donors, it is

necessary to indicate it in the field Selected donors and to presses a button , after which it will be deleted from the list in the field.

Figure 6 – ISDACON – Targeted donors

PROJECT STATUS

After entering data on the targeted donors, it is necessary to determine PROJECT STATUS.

Project, at various stages has appropriate statuses, having precisely defined sequence. Typically, at the beginning, it is submitted project proposal. After detailed analysis and possible ranking, the project is accepted, enters the negotiation process, after which the project receives the project contracted status. At this stage, financial, administrative and technical preparations are conducted as prerequisites for the project execution.

Contracted project, after defining the project starting date, detailed activities and implementers responsible for their execution, moves to the performance phase, receiving a started status. The project, which was "approved by the relevant ministry", and "reviewed by DAKU” becomes a candidate for the development project (i.e. for connecting to the financial resources of the grants) regardless of the status. The status of the project is a logical unit in a development cycle of the project.

NOTE: At the time of entering the proposal in ISDACON information system, the project can already be at the stage of implementation from the part of the funds that were previously provided, and that the additional funds for the successful completion of the project are claimed from the foreign grant. In this case, status started should be entered in ISDACON information system, while such fact should be stated in the upper, textual part of the form.

If the project has been successfully completed, the final report will be submitted by the executor, which was accepted by donors and beneficiaries. Having performed all obligations under the contract, relating to the project, the project receives status completed.

In the first three statuses, due to administrative, technical or financial difficulties, the donor, the executor or user can stop the project. When there is a willingness of donors and beneficiaries to proceed with the project in case of eliminating the existing obstacles, the project will go into status suspended. If there is a document under which the donor officially and permanently suspended execution of the project, the project will receive the status cancelled.

Entry is done by selecting the status of the project from the drop-down menu (see Figure 7).

Figure 7 – ISDACON – Project status

Entering information on the project status is mandatory. ISDACON information system will save information only if project status has been entered!

PROJECT APPROVING

Means the first stage of approval, defining whether the ministry or institution responsible for the submission of project proposals approves project proposal. Data on all projects are stored in the database, but only projects approved by the relevant ministry or the competent institution may apply for donor funds.

The project proposal is approved in ISDACON information system by the selecting one of two options offered (see Figure 8).

FIgure 8 – ISDACON – Project approving

This part of the database was specifically designed to store the data on all active projects, of project proposals, as well as historical data related to the projects. Data from ISDACON information system are used to increase efficiency in delivering the proposals to interested development partners, so it is essential to duly register all proposals in the system. Therefore, ISDACON information system is used as an electronic database, in order to deliver in the quickest and most efficient way to interested donors project proposals of different institutions from the republic and / or local level.

LOCATION

Means the geographic location where the project is implemented and the information is not mandatory. If you do not select any location, it is understood that the project is implemented on the entire territory of the Republic of Serbia

Figure 9 – ISDACON – Project location

Due to displaying geographic data (and the use of maps generating software), it is recommended to enter as accurate data as possible. Geographical areas in the Republic of Serbia are: AP Vojvodina, AP Kosovo and Metohija and Central Serbia. By selecting the geographical areas, the number of districts and municipalities to be displayed will narrow down. Defining the districts will further narrow down the number of municipalities that are shown in the list. It is possible to define the municipality, without prior determination of geographic areas and districts and in such case these two data will be assigned automatically.

PROJECT DOCUMENTS

In this part of the application, the registered user is able to enter project documents (to upload), if such exist.  PROJECT DOCUMENTS represent the development of preliminary project, which is formulated by the registered user through the previous procedures. Although the entry of project documentation is not mandatory when entering the project proposal, it is desirable for the registered user to enter all documents relating to the project proposal, notwithstanding the level or its technical development and the time of update, to provide that way foreign development partners with as much available information as possible when deciding on possible support to subject project.

The volume of documents (project documents) is limited to 5 MB (megabite)2. In case of larger document, it is necessary to contact application administrator.

Entering the project documentation is done by selecting option in the field labelled (in addition to Project documents), after which it is necessary to press the button on the right of Project documentation, opening a new window to enter (upload) the desired documents (see Figure 10)

Figure 10 – ISDACON – Project documents

Figure 11 – ISDACON – Project documents, uploading documents

After opening a window to upload documents, it is necessary to press the button Add a new document in the upper left corner of the window (see Figure 11) opening part for entering data (see Figure 12).

Figure 12 – ISDACON – Project documents. Uploading document, data entering

First, from the open-list (so called dropdown list) select the Type of document, which can be: main project, preliminary design, project execution, feasibility studies, and other. Then, by pressing the button select the document to upload. Document description is the text that will be displayed as the name of the document in the system. From the open list (drop-down list) Language of the document, select the language of the document. Comment is an optional feature and is not necessary to fill it in. The user uploading the document has the option to prohibit further changes or document deleting by appropriate option "checking" or "de-checking” appropriate option (see Figure 12).

In the end, it is necessary to press the send button. If the document upload has failed, the system will display an appropriate message:

Figure 13 – ISDACON – Project documents, successful document uploading

IMPORTANT DATES

Project—related Important dates are: Project date - the date when project proposal was submitted and/or entered in ISDACON information

system; Proposed beginning – date on which project commencement is expected; Planned duration – whole number representing number of months planned for project execution

(e.g. number 12 should be entered for one calendar year).

Figure 14 – ISDACON – Important dates

Information on the date of project proposal and proposed beginning of the project are entered by marking option after which the picture of calendar shall appear in the database on which desired date should be selected (see Figure 14 and 15).

Figure 15 – ISDACON – Important dates, entering

NOTE: It is important to emphasize that the project cannot be entered without dates and duration stated, because the system uses these fields for automatic data recording, and/or the system delivers e-mails to registered user (contact person for the project) with a notification that it is necessary to update the underlying data . This means that if you, for example, entered 30th of August as the date when a project started, entered 30th August as the expected beginning of the project, and 2 months as expected duration, ISDACON information system will send an e-mail on 30 th of October notifying you that you have a project with invalid status (status of the project as started, and should be completed on the said date.If there were errors during data entry, it will be marked with a red * sign beside the field. 

BUDGET

The field BUDGET of the project proposal refers to total amount of funds necessary to implement the project, including possible personal resources provided for the purpose of co-financing project activities.

Figure 16 – ISDACON – Budget

Values are entered in Arabic figures, with or without punctuation marks, as shown (see Figure 17).

Serbian version

English version:

With no punctuation:

Figure 17 – ISDACON – Entering project values

After entering the total value of the project, it is necessary to select a currency from an existing list of currencies included in ISDACON information system. The aforementioned funds shall be entered in one of the offered currencies, but it is certainly desirable to enter the financial information European Union's common currency - euro (see Figure 18).

Figure 18 – ISDACON – Selecting the currency

After entering the total value of the project, and selecting one of the offered currencies, ISDACON information system will perform automatically conversion of selected currency in appropriate RSD, EUR or USD amounts. (see Figure 19).

Figure 19 – ISDACON – Conversion of amounts in selected currency

After selecting the currency, it is necessary to devide entire budget into several items (See Figure 20).

Figure 20 – ISDACON – Provided/not-provided, own/external funds

Main division of budget items is into: Provided funds – part of funds has been already provide by the institution submitting project proposal; Not-provided funds – part of funds not provided by the institution submitting the project proposal for successful

implementation.

Provided funds can be own resources, when provided from the local, national budget or external resources, when provided by foreign donors / creditor. The same rule applies to not-provided funds.

NOTE: The mandatory information in the budget field are the total project value, the original currency and external not-provided funds, while other information is needed but not mandatory. If other information have been entered, the following conditions have to be met: (a) the sum of provided and not-provided funds equal to the total value of the project (b) the sum of own and external provided funds equal to the provided funds (c) The sum of own and external not-provided funds equal to the not-provided funds.If any of these conditions has not been met, the system will return the appropriate notice.

PROJECT PROPOSER

The proposer of the project is the organization that has, in accordance with existing rules and procedures established, been authorized to submit proposals and enter them in ISDACON information system. 

Entering the project proposer is done through search option , after which the registered use has a possibility to choose the organization proposing the project. The choice can be made directly by entering the name of the organization in the marked area, then the desired organization will appear on the screen, as well as the possibility to choose the contact person for such the organization. If the accurate name of the organization is unknown, the registered user has the possibility to chose the organization by pre-selecting the country which the organization belong to, after which the database will automatically list all organizations that belong to the marked country. It is necessary to select the desired organization from the list of organizations, and then the contact person for the selected organization (see Figure 21). 

Figure 21 – ISDACON – Entering project proposer

NOTE: All organizations are included in ISDACON information system. Registered user is unable to enter organizations, nor contact persons who belong to these organizations. In case of organization not included in the database, registered user must contact the administrator or his contact person with MFIN, with a request to enter a new organization, as well as the relevant contact person

PROJECT BENEFICIARY

PROJECT BENEFICIARY is an organization / legal entity that will benefit from project activities, and / or the end user of the funds donated. The principle for the definition of beneficiaries is the same as for the definition of an organization that is proposing the project (i.e. selecting from the list resulting from search) (see Figure 22).

Figure 22- ISDACON – Project beneficiary

Entering the project beneficiary is done by the brows button , after which the registered user has the possibility to choose the organization, this project beneficiary. The choice can be made by entering directly the name of organization in the designated field, after which the screen will show the required organization, as well as the possibility to choose the appropriate contact person for such organization. If the correct name of the organization is unknown, the registered user has the possibility to reach the organization by pre-selecting the country organization belongs to, after which the database will list automatically all organizations located in the selected country.  It is necessary to select the required organization from the list of organizations as well as the contact person for the selected organization (see Figure 23).

Figure 23 – ISDACON – Entering project beneficiary

NOTE: All organizations are included in ISDACON information system. Registered user is unable to enter organizations, nor contact persons who belong to these organizations. In case of organization not included in the database, registered user must contact the administrator or his contact person with MFIN, with a request to enter a new organization, as well as the relevant contact person

PROJECT CLASSIFICATION

PROJECT CLASSIFICATION means: Defining area – established pursuant to which competent ministry project proposal has been submitted to and/or

which competent ministry approves and officially proposes project to be funded by donors; department – established based on organizational unit which is responsible for monitoring project proposal within

competent ministry; establishing project type – projects are divided into development and humanitarian (see Figure 24)

Figure 24 –ISDACON – Project classification

If the proposed project covers the area of energy (for example, support to the construction of power networks), it is necessary to choose the area - mining and energy sector, following the current internal structure of the relevant ministries, in this case the Ministry of Mining and Energy. Following this logic, in such case, it should select as the department - energy (see Figure 25)

Figure 25 –ISDACON – Selecting the department

Entering areas and department is performed by checking in an existing open-list (drop-down list), by selecting the option (see Figure 25).

STORING ENTERED DATA

To save all data previously entered in ISDACON information system, it is necessary to select an option .

If all data are properly entered in the ISDACON information system, the system will save them. Otherwise, a notice of error will be displayed (see Figure 26).

Figure 26 – ISDACON – Notifying on error

NOTE: If project has been entered in ISDACON information system, procedure for its deleting is not simple, and/or user cannot delete previously entered project but has possibility only to send e-mail to administrator with information that certain data should be deleted. Deleting itself is performed by the developer. Besides, it is important to mention once again that user is not allowed to change information already entered and/or updated by other registered users.

NOTIFICATION ON ENTERED PROJECT PROPOSAL

After successful entering of the proposal (which will be shown in the review module, which is possible only if the entry form for the proposal is properly completed), ISDACON information system will automatically notify the responsible contact person in MFIN / Department of Programming and management of EU funds and Development Assistance (hereinafter MFIN / DAKU), in charge of that department covered by proposal2. Notification is issued when a contact person in MFIN receives an email from the information system, indicating that there is project proposal with a specific code and name3 in the ISDACON information system, pending to be reviewed and approved by the MFIN / DAKU.

Мicrosoft Word document:

When entering the draft of the proposal in electronic form by the registered user, ISDACON information system also automatically transfers the data entered in a Microsoft Word document. The draft project proposal, contained in a Microsoft Word document, automatically becomes attached (attachment) to an email by which ISDACON information system informs responsible contact person in MFIN / DAKU that a draft of the proposal has been entered into the system.

The information contained in a Microsoft Word document corresponds to the contents of the data entered into the electronic form of ISDACON information system.

Contact person in MFIN / DAKU shall, upon receipt of electronic information with the attached draft project proposal in a Microsoft Word document, review the same and, depending on the quality of information provided, either:

1. A draft project proposal is not approved because of its incompleteness, and/or deficiencies in terms of quality of information provided about the project, as well as to enter in the appropriate Microsoft Word document appropriate comments / suggestions on possible amendments-supplements to the draft project proposal and ask for changes in accordance with the comments.

2. A draft project proposal is approved, if it considers that the information provided is sufficient, complete and without deficiencies2.

In the case when the contact person in MFIN / DAKU does not approve the draft project proposal, the obligation is to forward it with the entered comments / suggestions and / or demand for its processing / editing, in Microsoft Word document, to the registered user who, in the name of the relevant ministry or other authorized institution, has entered the draft project proposal.

Forwarding draft project proposal with a request for its finishing / editing to a registered user, is done electronically (e-mail) by the responsible contact person in MFIN / DAKU.

Only when the draft of the project proposal is entirely consistent between the relevant ministry (or other relevant institutions) and MFIN / DAKU, contact person in the MFIN / DAKU responsible for the department will approve the draft project proposal, after which it will also be available for review by other registered users of ISDACON information system, including representatives of donor community.

ISDACON information system electronically, notifies automatically the responsible contact person in MFIN / DAKU on each entered change / amendment in the project proposal by registered users.

CHANGING PROJECT INFORMATION

The project, once entered in ISDAKON information system cannot be deleted, but the details of the project at any time can be amended. Amendments of project data can be performed by accessing project browsing page within ISDACON

information system and choosing "my projects", or as described in chapter Browsing projects at the beginning of this Instructions. After that, it is necessary to select an optionso ISDACON information system can show the requested project (see Figure 27). Figure 27 – ISDACON – Browsing projects

After ISDACON information system displays the selected project, choosing Edit , registered user has the possibility to make changes to existing data within the electronic form for entering project proposals.

Figure 28 – ISDACON – Project editing

2 Approving the draft project proposal by the MFIN / DAKU in terms of this instructions, implies that they will be available to representatives of the donor community through ISDACON information system.

The same rules apply to the procedure of editing the project proposals as to a procedures for entering a new project proposal, as defined in the chapters "Browse projects", and "Project entering" of these instructions.

APPLYING WITH PROJECT PROPOSALS IN 2009-2011 FOR 2010-2012

Drafts project proposals entered in ISDACON IS as priority ones during the process of programming in 2009, but not approved for funding or not fully provided with financing resources, can run for the period 2010-2012.

Applying with project proposals from 2009-2011 for 2010-2012 shall be performed on the page for browsing project proposals from 2009-2011 Projects 2009-2011 (see Figure 29), to be reached by selecting Project proposals 2009-2011 from Projects drop down menu (see Figure 27).

Figure 29 – ISDACON – Projects 2009 - 2011

Browsing projects to apply shall be conducted by selecting option “my projects”, by entering part of the project name or code in the field for key words searching. Selecting option apply in 2010-2012 (see Figure 30), project in the form of project proposal 2010-2012 will be displayed to registered user.

Figure 30 – ISDACON – Option Apply in 2010 - 2012

After registered user has entered necessary changes, it is necessary to press the button apply in 2010-2012 at the end (see Figure 31).

Figure 31 –ISDACON –Applying with projects in 2010 - 2012

If all data are properly entered in the ISDACON information system, the system will save them. Otherwise, it will display an error message (see Figure 26). After the successful applying with the project proposal for 2010-2012., ISDACON information system will automatically notify the responsible contact person in MFIN / DAKU, in charge of the department involved in project proposal. Notification is performed in such way when a contact person in MFIN / DAKU receives an email indicating that there is project proposal in ISDAKON information system with a particular code and name, pending to apply for project proposals 2010-2012 by MFIN / DAKU. As an email attachment, contact person in the MFIN / DAKU receives Microsoft Word document, which corresponds to the project data in the database by its contents.

Contact person in MFIN / DAKU shall, upon receipt of electronic information with the attached draft project proposal in a Microsoft Word document, review the same and, depending on the quality of information provided, either:

1. A draft project proposal is not approved because of its incompleteness, and/or deficiencies in terms of quality of information provided about the project, as well as to enter in the appropriate Microsoft Word document appropriate comments / suggestions on possible amendments-supplements to the draft project proposal and ask for changes in accordance with the comments.

2. A draft project proposal is approved for project proposals 2010-2012, if it considers that the information provided is sufficient, complete and without deficiencies3.

In the case when the contact person in MFIN / DAKU does not approve the draft project proposal for 2010-2012, the obligation is to forward it with the entered comments / suggestions and / or demand for its processing / editing, in Microsoft Word document, to the registered user who, in the name of the relevant ministry or other authorized institution, has applied with the draft project proposal for 2010-2012.

Forwarding draft project proposal with a request for its finishing / editing to a registered user, is done electronically (e-mail) by the responsible contact person in MFIN / DAKU.

Only when the draft of the project proposal is entirely consistent between the relevant ministry (or other relevant institutions) and MFIN / DAKU, contact person in the MFIN / DAKU responsible for the department will apply with the draft project proposal for 2010-2012, after which it will also be available for review by other registered users  of ISDACON information system, including representatives of donor community, as project proposal for 2010-2012.

ISDACON information system electronically, notifies automatically the responsible contact person in MFIN / DAKU on each entered change / amendment in the project proposal by registered users.

After project proposal in 2009-2011 applied as with project proposal 2010-2012, it will be shown in the system in both groups of projects. Further, project proposal will be displayed in the form of project proposal 2010-2012, regardless the group of projects we access to.

3 Approving the draft project proposal by the MFIN / DAKU in terms of this instructions, implies that they will be available to representatives of the donor community through ISDACON information system.

(2010 – 2012)

2010 – 2012

ANNEX 3

EXPECTED DONATORS RESOURCES WITHIN THE PERIOD 2010-2012

In order to increase the predictability of international assistance funds, provided for under the Paris Declaration on assistance effectiveness, adopted in Paris in March 2005, the Ministry of Finance on the basis of information obtained from development partners prepared this document. The main objective of providing data on the expected international assistance resources in the next three years is to improve the process of planning activities and making financial plans for financing from the budget in the relevant ministries and other state institutions. This document will be one of the starting points in the process of programming international assistance in 2010, when defining priority project ideas for funding from the international assistance resources, having in mind that provides the basic conditions, criteria and procedures for approving and implementing projects of individual donors. In this way, it will ensure better coordination in individual donors’ resources programming.

Annex 3 consists of two parts:

А. TOTAL EXPECTED INTERNATIONAL ASSISTANCE RESOURCES PER SECTORS IN THE PERIOD 2010-2012

B. DEVELOPMENT ASSISTANCE POLICY, STRATEGIC FRAMEWORK AND PROCEDURES PER DONORS

ANNEX 3А

А. TOTAL EXPECTED INTERNATIONAL ASSISTANCE RESOURCES PER SECTORS IN PERIOD 2010-2012

1. Expected new assistance in period 2010- 2012 – total per sectorsIn euro

A. institutional strengthening, good governance 64.994.024B. Economic development, including infrastructure 36.459.711C. Social sector and standard of living 21.252.792D. Rural development       3.288.401E. NGO and civil society       19.609.212

Total 145.604.140

2. Expected new assistance in period 2010- 2012, with no division per sectorsIn euro

European Union 605.800.000Germany             45.000.000Norway 21.000.000

Total 671.800.000

In euro3. TOTAL EXPECTED NEW ASSISTANCE IN PERIOD 2010-2012 (1+2):                 817.404.140

NOTE: The expected total new funds in the period 2010 - 2012 are greater than the amount shown, taking into account that some development partners were not able to provide information on the expected volume of assistance to Serbia, but only to priority sectors. In the following tables, x marks sectors to be supported by donors, but the amount to be provided is not known

A. Total expected international assistance resources per sectors in period 2010- 2012

Expected new assistance Total in euroA. Institutional strengthening         64.994.024

Development partner Year

State administration

AssemblyLocal governments

Internal affairs

Legal system and judiciary development

Public finances management

Preventing and conflict solving, safety system

Economic and development policy and planning

General Budget support

Norway2010 x     x x x   x  2011 x     x x x x x  2012 x     x x x x x  

  Total x     x x x x x   x

United Kingdom2010                  2011                  2012                  

  Total                   500.000

Germany2010                  2011                  2012                  

  Total                   5.000.000

UNICEF2010   36.000 72.000   28.800     156.960  2011   х 62.640   х     169.200  2012   х 36.000   х     39.600  

  Total   36.000 170.640   28.800     365.760   601.200

Switzerland2010     342.466            2011     547.945            2012     958.904            

  Total     1.849.315             1.849.315

Sweden2010 3.800.000   900.000 1.700.000 700.000 400.000 600.000 200.000  2011 2.900.000   700.000 1.000.000 800.000 400.000 400.000    2012 2.300.000     1.000.000          

  Total 9.000.000   1.600.000 3.700.000 1.500.000 800.000 1.000.000 200.000   17.800.000

UNDP2010 400.000       1.910.000 70.000 1.960.000    2011 490.000     350.000 70.000 725.485    2012           26.600 546.000    

  Total 890.000       2.260.000 166.600 3.231.485     6.548.085

Spain2010 10.000                2011                  2012                  

  Total 10.000                 10.000

USA2010   681.000 3.064.500   3.309.660   1.259.850 2.983.414  2011   681.000 3.064.500   3.745.500     2.724.000  2012   681.000 3.064.500   2.043.000     2.383.500  

  Total   2.043.000 9.193.500   9.098.160   1.259.850 8.090.914   29.685.424

Netherlands2010 х              2011 х              2012 х              

  Total х                 хJapan 2010             х  

2011                2012                

  Total               х   х

Austria2010 1.200.000              2011 1.000.000              2012 800.000              

  Total 3.000.000                 3.000.000Total per sector:   12.900.000 2.079.000 12.813.455 3.700.000 12.886.960 966.600 5.491.335 8.656.674 0

Expected new assistanceукупно у еврима

B. Economic development, including infrastructure   36.459.711

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Norway2010         x x         x      2011 x   x   x           x x    2012 x   x   x           x x    

  Total x   x   x x         x x     х

Spain2010         50.000           40.000      2011                            2012                            

  Total         50.000           40.000       90.000

Germany 2010                            

2011                            

2012                            

  Total                             5.000.000

Italy2010   6.770.915         71.200              

2011   234.458                        

2012   163.692                        

  Total   7.169.065         71.200               7.240.265

USA2010     1.369.592               3.405.000      2011     2.724.000               3.405.000      2012     2.043.000               1.532.250      

  Total     6.136.592               8.342.250       14.478.842

Switzerland 2010     136.986                      2011 483.000   684.932 342.466 1.712.329             684.932    2012 483.000   684.932 342.466 1.712.329             684.932    

  Total 966.000   1.506.850 684.932 3.424.658             1.369.864     7.952.304

Denmark2010                     х      2011                     х      2012                     х      

  Total                     х       х

Austria2010 198.300                   200.000      2011                     550.000      2012                     750.000      

  Total 198.300                   1.500.000       1.698.300

Japan 2010     х х х         х     х  2011                            

2012                            

  Total     х х х         х     х   хTotal per sector: 1.164.300 7.169.065 7.643.442 684.932 3.474.658 х 71.200     х 9.882.250 1.369.864 х  

Expected new assistanceукупно у еврима

C. Social sector and standard of living     21.252.792

Development assistance Year

Social issues Dwelling Healthcare Education Water and waste management

Culture and recreation/ sport

Environmental protection

Norway2010 x     x     x2011 x     x     x2012 x     x     x

  Total x     x     x x

United Kingdom 2010              2011              2012              

  Total               86.207

Italy2010 551.298         589.060  2011 438.500         490.225  2012              

  Total 989.798         1.079.285   2.069.083

Sweden2010 1.200.000         450.000 2.600.0002011 1.200.000         350.000 2.500.0002012 400.000           800.000

  Total 2.800.000         800.000 5.900.000 9.500.000

UNDP2010             1.050.0002011             1.050.0002012              

  Total             2.100.000 2.100.000

UNICEF2010 945.360   249.120 414.000      2011 532.800   219.600 403.200      2012 86.400   126.000 316.800      

  Total 1.564.560   594.720 1.134.000       3.293.280

Switzerland2010       342.466      2011       547.945      2012 506.849     1.575.342      

  Total 506.849     2.465.753       2.972.602

Netherlands 2010         х   х2011         х   х2012         х   х

  Total         х   х х

Austria2010 100.000     630.600 100.000    2011 115.020     286.000      2012              

  Total 215.020     916.600 100.000     1.231.620

Japan 2010 х   х х   х х2011              

2012                Total х   х х   х х хTotal per sector:   6.076.227   594.720 4.516.353 100.000 1.879.285 8.000.000

Expected new assistanceIn euro

D. Rural Development

Develpopment Partner Year Rural

Develompent

UNICEF2010 86.4002011 115.2002012 108.000

  Total 309.600

UNDP2010 700.0002011 700.0002012 418.801

  Total 1.818.801

Аustria2010 965.0002011 195.0002012  

  Total 1.160.000

Japan2010 Х2011  2012  

  Total ХTotal: 3.288.401

Expected new assistancein euro

E. NGOs and Civil Society

Development Paetner Year NGOs and Civil

Society

Sweden2010 450.0002011 850.0002012  

  Total 1.300.000

USA2010 5.424.1652011 5.151.7652012 5.107.500

  Total 15.683.430

UNDP2010 1.260.0002011 700.0002012  

  Total 1.960.000

Switzerlаnd2010  2011 137.0002012 137.000

  Total 274.000

United Kingdom

2010 275.8622011  2012  

  Total 275.862

UNICEF2010 7.9202011 54.0002012 54.000

  Total 115.920Total: 19.609.212

DEVELOPMENT ASSISTANCE POLICY, STRATEGIC FRAMWORK AND PROCEDURES PER DONORS АNNEX 3Б

Development partner European Union (instrument for pre-accession assistance - IPA)

Development/ implementing agencies Projects funded by the EU are implemented after conducting tender procedures in accordance with the financial rules of the EU (Practical Guide to contract procedures for EC

external actions - Prague).Implementing agency is selected at the same time with iImplementation of the tender procedure. Strategic assistance – multiannual strategic document

The main strategic documents are: European partnership and Multiannual indicative program document for the Republic of Serbia 2009-2011.

Legal grounds for cooperation

Framework Agreement between the EC and the Republic of Serbia was signed and ratified on 26 th of December 2007. Upon completion of programming process, the financial agreement is signed which is the legal basis for the implementation of the annual financial package.

Relevant strategic documents for planning assistance

The relevant strategic documents are: the European partnership and multi-annual indicative program document for the Republic of Serbia in the period 2009 - 2011, Implementation financial rules and financial Implementation rules - Prague

Priority sectors/ intervention areas

1. Political criteria: strengthening democratic institutions, reform of state administration, local development, the budget system reform, internal audit, strengthening the rule of law (judiciary and police), human and minority rights, refugees and displaced persons, NGOs, media. 2. Socio-economic development: the promotion of employment and social welfare, education reform, health, small and medium enterprise support foreign direct investments, procedure in emergency situations, privatization, macroeconomic and strategic planning, infrastructure, rural development. 3. European integration: support to the process of European integration, the introduction of decentralized management system of EU funds, state assistance and consumer protection, development and implementation of strategic documents, policies, agriculture and rural development, environmental protection, transportation, energy, community programs, the judiciary,combating organized crime and terrorism.

Types of funds/ financial instruments and models of assistance

Grants are implemented through various forms of assistance, such as: twinning (twinning is a special instrument for EC cooperation with countries that are not yet members of the EU. Twinning is always a common project and therefore differs from the classical project of technical assistance of member countries to beneficiary country), twining of the narrowed scope, technical assistance, equipment, infrastructure works and donations.

Special project acceptability conditions and criteria

Based on the experience of other countries in the process of European integration, it has been identified that support of the European Union is used more efficient if the system of medium-term and annual planning is developed and preparatory work for implementation of specific projects (preparation of studies on economic feasibility, project documents prepared etc) carried out to the great extent. In order to make Project Fiche fit the criteria required by the European Commission, the relevant ministries are required to define the project proposals including more sectors and also contributing to the achievement of priorities set broadly. In addition, clear definition of specific actions, measures and / or conditions needed to be executed or provided we set as basic criterion in order to achieve the expected project results. In order to make proposed Project Fiches meeting all necessary criteria, it is necessary to link priorities of the Republic of Serbia, expressed in the proposed project, with the priorities contained in the strategic documents of the European Union. Considering the continuity of EU financial assistance, as well as a clear phase in the process of European integration, the proposed project should include shortcomings, positive experiences and recommendations of previously implemented projects, as well as other conducted activities and efforts and in the area of the assistance that is applied for. Experience has shown that projects developed on the basis of partnerships with key partners and interested parties are more likely to achieve their goals and prouduce good results. In order to avoid overlapping and duplication of projects and activities, and maximize the final results of the overall assistance in the project it is necessary to determine the mechanisms of coordination of donor activities, both scheduled, and ongoing activities supported by multilateral or bilateral donors.  The proposed project becomes more important and also a greater chances to be funded if they provide co-financing or parallel implementation by other development donor agencies. In order to take the proposed project in general consideration, it is necessary to show a clear link between the objectives contained in strategic documents of the Republic of Serbia and objectives of the project being proposed. In order to meet some basic requirements in the process of project proposals for financing from EU funds, the project is necessary to clearly identify all interested parties.  The proposed project must have clearly established goals, results and activities, as well as a clear and logical connection established between them.  For the purpose of clearly defined measures for overcoming the potential risks in the project proposal, risks must be accurately determined. Project proposer should pay special attention to the fact that the project proposal has an appropriate role in the realization of objectives of the policy in the area of environmental protection, cross-border cooperation, social and cultural development, effective governance and gender equality. If the proposed project does not take account of these criteria, it is sufficient to signal that the proposed project is not sufficiently elaborated per funding criteria. For the purpose of theproject receiving financial resources necessary for funding in the budget, required financial resurces should be shown per items for each of the activities envisaged in the project proposal. One of the basic preconditions for the proposal to be supported by the EU is to provided in advance project co-financing from the national budget.

Description of procedures for programming, approving and project implementation, including time frame

Programming: the beginning of the current year (eg 2010) until the end of the current year (eg 2010); Approval: beginning of the next year (2011) until the half of the same year (2011); Implementation: the second half of the same year (2011). Considering the limitations of the implementation, it is realistic to expect that the projects implementation has been six months late (2011). When defining a calendar of project activities, it is required to take into account the limited duration of the projects to be financed from funds of the European Union. Usual duration for projects is 12, 24 or 36 months. Completion of all project activities has been provided for under the Financial agreement signed by the Government for a specific budget year and is 36 months in general. If the beneficiary has not spent funds in the given period, they are returned to the budget of the European Union.

Development partner Austria

Development/ implementing agencies

In operational terms, Austrian Development Agency (ADA), as a body (agency) of the Austrian Ministry of Foreign Affairs is responsible for the implementation of projects of Austria's development assistance to Serbia.

Strategic assistance – multiannual strategic document

General principles of Austrian development cooperation have been set by the Austrian Development Cooperation Enactment and relate primarily to investing efforts to reduce poverty, ensuring peace, security and environmental protection. On the basis of this general Enactment, the three-year programs are reached:LANDESPROGRAMM 2006-2008, and/or program for the Austrian development assistance to the Republic of Serbia, especially taking into account the European perspective of Serbia and the need for political, economic and social stability in the EU accession path. Hence, two main lines of the Austrian aid have been defined as assistance to the employment policy on the one hand, and the promotion of European values and standards, on the other side.Austria donor activities are realized on the principle of geographical grouping / concentration, so in that respect, two regions of the Republic of Serbia are key for the reference period: Southern Serbia and Vojvodina.The budget for the donor activity is planned on an annual basis. For the year 2008, the Austrian development assistance allocated to the Republic of Serbia was about three million, and similar amounts could be expected in 2009 and 2010.

Legal grounds for cooperation

On 6th of February 2009, the agreement was signed between the Republic of Serbia and the Republic of Austria on the general terms and conditions of development cooperation. This general contract is a significant improvement compared to the previous basis of cooperation between Serbia and Austria. So far, the legal basis for donor activities of the Republic of Austria in the Republic of Serbia was only specific grant contract for each program / project implemented by the Agency. In this sense, the framework agreement is a system solution (legal grounds) for development co-operation of Austria and Serbia.

Relevant strategic documents for planning assistance

The first strategic priority set in the aforementioned Framework Agreement, refers to achieving economic growth and sustainable and balanced social development of the Republic of Serbia, as well as commitment to political, economic and social reforms necessary for a gradual adjustment of the Republic of Serbia to the European Union structures.Secondly, the general objectives of the Austrian Development Cooperation and Development Cooperation Act as of 2002 prioritizing poverty reduction, preservation of peace and security and environmental protection are mentioned as a strategic framework from which periodic programs per individual country are to be derived.Compliance with the Paris Declaration on assistance effectiveness and taking actions in furtherance of the principles of ownership, alignment, harmonization, and mutual accountability was established ss a two-sided commitment of the Republic of Serbia and the Republic of Austria.

Priority sectors/ intervention areas

Sectors: higher education, environmental protection, water supply, energy and development of a democratic society in Serbia. In addition, the program icluded and support to the development of small and medium-sized enterprises in Serbia. The development of regional educational activities are also planned and conducted under the Austrian sponsorship, and as a complementary project of the Council for Regional Cooperation (so far the Stability Pact for South Eastern Europe)

Types of funds/ financial instruments and models of assistance

According to the text of agreement, development cooperation is taking place in the form of technical and financial cooperation, humanitarian aid, or assistance in emergency situations.Such cooperation can take place on a bilateral basis or in collaboration with other bilateral donors, and / or multilateral organizations

Special project acceptability conditions and criteria

There are no special conditions that have to be met by the project proposals intended for financing from the Austrian Development Agency. When submitting project proposals, it is necessary to pay attention to the sector covered in the Republic of Serbia by the ADA, and then specify the standard elements of the project: the legal basis, the context, a description that clearly stating objectives, elaborated activities, expected results, the period of implementation and budget. Participation of the beneficiary is not formally mandatory condition, but certainly in practice, a project having such component certainly has in practice greater chances for being approved for funding (usually required participation in the services, equipment).  There is no exact amount determined as the value of the project, it largely depends on the current available resources, but we must bear in mind that Austria is not a donor able to fund projects of several million euro (this does not apply to assistance programs that may amount to several million euros, as it is currently developing program to help the AP of Vojvodina, supporting six separate projects).

Description of procedures for programming, approving and project implementation, including time frame

In the case of the Austrian development agency in the Republic of Serbia, there are no formal procedures for submitting project proposals, nor a time frame within which the proposals must be submitted. The project proposal can be submitted throughout the calendar year. Upon submission of the project proposal (if it is not necessary to make any supplements or amendments), the Austrian Development Agency office in Belgrade is the first level of the project proposal assessment. If the proposal is evaluated as good, it shall be submitted to the competent office of the Austrian Development Agency in Vienna, where the final evaluation of project proposals is conducted and final decision made, whether the project will be funded or not.  The project proposer will be informed on the final decision of the Austrian Development Agency, through the office in Belgrade.

Development partner Swiss Confederation

Development/ implementing agencies

Swiss Government consists of two institutions responsible for development assistance.Swiss Development Agency is with the Swiss Ministry of Foreign Affairs and is responsible for development assistance relating to support to projects related to capacity building, technical assistance, and/or so called soft project aiming at the administrative and general social system refor. Secretariat for Economic Cooperation of the Swiss Ministry of Economy is responsible for development projects that are only of infrastructural character. The work of both bodies in the Republic of Serbia has been coordinated by Swiss Cooperation Office of Belgrade.

Strategic assistance – multiannual strategic document

Swiss Cooperation Office has prepared a Medium Term Concept for Serbia (and Montenegro) 2002-2006 and launched an important program of technical assistance focused on supporting institutional reforms, social infrastructure and public administration, education, private sector and others.  Defined mid-term concept has been harmonized with the priorities of the Government of the Republic of Serbia defined in the Strategy for Poverty Reduction and EU integration Strategy.Switzerland has based its work in the field of development assistance on a three-year strategic documents defining the basic directions of activity in the country- assistance beneficiary. Strategic document Strategy for cooperation with Serbia 2007-2009 has been valud currently for the Republic of Serbia.  In the second half of the 2008, a wide consultative process through workshops and seminars started in order to define priorities and concepts of strategic document for Serbia after the 2009.

Legal grounds for cooperation

Development Co-operation between Serbia and the Swiss Confederation is regulated under the Framework Agreement on Financial and Technical Cooperation, ratified on 17 th of July 2003. The agreement covers the period of five years, with possibility of extension on the basis of this automatic extension, the implementation of the Agreement will continue in the future, since, at the end of the previous period of validity, none of the parties has proposed termination of the Agreement.

Relevant strategic documents for planning assistance

All proposals submitted to the financing to Swiss office for cooperation must be in accordance with the priorities defined in the Strategy of cooperation with the Republic of Serbia 2007-2009, and within the sector supported by Switzerland through development assistance.

Priority sectors/ intervention areas

Priority sectors supported by Switzerland through its development cooperation program are: institutional reform of public administration, education and scientific activities (support to education is quite broad and covers almost the entire segment of education in Serbia and especially vulnerable groups), the private sector (improving the investment climate  , access to finance for SMEs, trade policy, providing consulting services to the most vulnerable categories of population who want to set up a private business), local governments (based on program access). Also, great attention is paid to the improvement of civil society and minority issues and their involvement in the social system in the Republic of Serbia. Swiss Secretariat for Economic Cooperation supports large infrastructure projects in energy and environment, where energy is a priority.  Since 2008, the special attention and additional financial resources are devoted to projects addressing problems of migration, and regional programs of cultural and regional cooperation have commenced supported by Pro Helvetia organization.

Types of funds/ financial instruments and models of assistance

Almost all types of development assistance (technical assistance, support infrastructure, purchasing equipment) are available to the Republic of Serbia.  Switzerland has no plans to provide favorable loans to customers in the Republic of Serbia in the period 2007-2009.  So far, Switzerland has participated in favorable credit arrangements, but as participation in loans from international financial institutions and credit lines for SMEs. Annual level of assistance to the Republic of Serbia in the period 2007-2009 is approximately 16 million Euros.

Special project acceptability conditions and criteria

All projects must be strictly in accordance with the priorities defined in the Strategy of cooperation with the Republic of Serbia, and/or to relate to the support of the sectors listed in the strategy as a priority. Programming development assistance is carried out by the Office for Cooperation in Belgrade on an annual basis in advance, in accordance with the priorities set out in the strategy

Description of procedures for programming, approving and project implementation, including time frame

Support programming is carried out annually by the Office for Cooperation in Belgrade and in consultation with potential assistance beneficiaries.  Following the agreement and defining project document, the Office sends the project proposal to the Headquarter in Bern, where is decided in the last instance on the project proposal.  After making a decision on financing the project, drafting of the contract / agreement is started with the assistance beneficiary on the project implementation.   The project document or the project implementation agreement defines the manner of implementation, as well as the partner in charge of implementation.  As a rule, when it comes to more complex projects, a special agency as a partner for the implementation of the project is engaged. In this case, control and evaluation of the implementation is monitored by the Office in Belgrade. In small scale projects, the agency responsible for implementation is generally Office for cooperation, or the project implementation is entrusted to beneficiary, on condition of regular reporting.

Development partner Japan

Development/ implementing agencies

- Japan International Cooperation Agency - JICA: as of 1st of October 2008, began with the very ambitious reorganization of the institutional and operational framework of Japanese bilateral development cooperation. The popularization of this process says about the "birth of the new JICA”, which should result in forming the largest bilateral assistance agencies worldwide. The main objective was to provide comprehensive assistance to developing countries through the provision of maximum performance in combining different instruments of development assistance. In this sense, the "new" JICA will provide technical cooperation, koncesionalne loans (loans from official development assistance of Japan), as well as direct grants. In organizational terms, this means that operations of the Japan Bank for International Cooperation (which has been providing loans so far), as well as the part of the activities of Japanese SMEs, refering to the provision of grants, will be integrated with the activities of technical cooperation and pass into the expanded jurisdiction of the "new "JICA.- Japan External Trade Organizatio

Strategic assistance – multiannual strategic document

/

Legal grounds for cooperation

Agreement on technical cooperation between the Council of Ministers of Serbia and Montenegro and the Government of JapanThe agreements concluded for each project individually

Relevant strategic documents for planning assistance

Poverty reduction strategy / Millenium development objectives

Priority sectors/ intervention areas

Consolidation of peace, economic development and regional cooperation (conclusions of the Ministerial conference on the Balkans, April 2004.) Social equality, promotion of agricultural development, environmental protection

Types of funds/ financial instruments and models of assistance

Grant assistance - funding of defined priority projects (usually involves the construction / reconstruction of a building or purchase of equipment)-Technical assistance - Japan's technical assistance includes several forms / mechanisms:-Arrival of Japanese experts at the request of the Ministry / competent institution of the Republic of Serbia to provide technical assistance in a given area;-Technical cooperation, a mechanism including, in addition to technical assistance of Japanese experts, procurement of equipment necessary for the implementation of the said assistance;-Preparation of development studies at the request of the Ministry / competent institution of the Republic of Serbia;-Seminars in Japan for experts from the Republic of Serbia in the areas defined as priority, for whuich the Government of Japan shall bear all costs.Grant assistance in the field of culture can be procurement of equipment and reconstruction of facilities.Program for the basic needs of the population (grass-root projects) is a fund financing procurement of equipment and reconstruction of facilities in the primary health care and education (health centers or primary schools).Revolving fund created during the implementation of the project Non-Project Grant Aid in 2001 was used to finance priority projects of the Government of the Republic of Serbia, which contribute to economic development and fulfillment of basic needs. It is desirable for the projects to continue to create a revolving fund and in that way have multiple effects. Projects are approved by the Government of Japan.Concessional (yen) loans are very favorable loans that can fund projects in four domains: environmental protection, reduction of social inequalities, protection against natural catastrophe and measures for recovery and development of human resources. Loans are extended under the general terms (interest rate of 1.70 to 1.50%, repayment period of 15 to 25 years, a grace period of 5 to 7 years) or preferential terms (interest rate of 1.20 to 0.60%). Type of loan can be determined only on the basis of the particular project. Grace period is included in the time of loan repayment. Although there is no limit value of this type of yen loans, their value is usually in the range of 15 to 150 million euros. In cooperation with JICA and Japanese SMEs, at the beginning of 2009 cooperation in the identification of project proposals the Republic of Serbia ran for yen loans was intensified.. Inter-ministerial meetings are coordinated by SMEs of RS

Cool Earth's ODA Loan is unbound loan with interest rate ranging from 0:30 to 0.60% per annum with repayment period of 15 to 40 years and a grace period of 5 to 10 years and is awarded at the expedited procedure. Japan has awarded this type of loan primarily for projects reducing emissions of greenhouse gases

Special project acceptability conditions and criteria Special conditions for the selection of candidates for attending seminars are provided in separate leaflets sent to the competent ministries by Ministry of Finance along with the

application to fill out the required forms.As for the basic needs of the population (Grass-root projects), the demand for this type of assistance, in the form of a specific form available at the Embassy, refers directly to the end user (usually a health centre or primary school) to the Embassy of Japan.Concessional (yen) loans are very favourable loans, terms of which depend on the GDP of the country concerned and the fact whether it is intended for the procurement of goods and services of Japanese origin or not

Description of procedures for programming, approving and project implementation, including time frame

Every year in June / July, Embassy of Japan sends the request for defining priority projects for each of these cooperation mechanisms. Ministry of Finance sends relevant ministries invitation to propose priority projects in the required format for each type of assistance. As for the seminars which are organized in Japan, the Embassy sends a list of all seminars that are organized in various fields, with the requirement to mark a number of seminars for which the Government of Serbia is interested in. Deadline for submitting proposals is mid-August of the current year.Program for the basic needs of the population (grass-root projects) is a fund for which end users (usually the health centre or elementary school) apply directly to the Embassy of Japan during the whole year.

Development partner Spain

Development/ implementing agencies

Spanish Agency for International Cooperation /Technical Office for Cooperation with the Balkans, based in SarajevoCommercial Department of the Embassy of Spain (concessional credits)

Strategic assistance – multiannual strategic document

Master plan for cooperation with Spain 2005-2008

Legal grounds for cooperation

The program of cooperation on technical assistance between Ministry of Foreign Economic Relations of Serbia and the Spanish Ministry of Foreign AffairsThe program of financial cooperation between the Council of Ministers and the Government of SpainThe program of financial cooperation between Serbia and the Government of Spain

Relevant strategic documents for planning assistance

UN Millenium Development GoalsOther strategic documents have not been specifically defined

Priority sectors/ intervention areas

According to master plan the cooperation of Spain 2005-2008, a document defining priorities of the Government of Spain's economic assistance and modalities of its implementation, the Republic of Serbia is in the third category of countries by priorities, first priority-South America, Maghreb, sub-Saharan Africa, the second are countries to which special attention is paid - Iraq, Afghanistan, Bosnia, Albania, and in third countries with preferential (so called preferred) status, development of which is not dependent on international aid, where the region of Southeast Europe is also located. Horizontal priorities of the master plan of cooperation are: combating poverty, defending human rights, promoting gender equality, environmental sustainability and restoration of resources and respecting for cultural diversity.The program of cooperation on technical assistance between the Ministry of International Economic Relations (now the Ministry of Finance) of the Republic of Serbia and the Spanish Ministry of Foreign Affairs defines the following priority fields of cooperation: European integration, institution building, justice, energy, social issues, environment and tourism.The program of financial cooperation between the Council of Ministers and the Government of Spain defines the fund of 45 million euro concession credit for Serbia.Defined fields of cooperation are: water management, environment, energy, chemical industry, infrastructure, telecommunications, transport, education and health.

Types of funds/ financial instruments and models of assistance

Spain grants - funding of defined priority projects (usually a component of technical assistance and investment in addition to works that can be construction / reconstruction or purchase of equipment) Technical assistance - visit of Spanish experts in specific subject areas of the project and organization of study visits to institutions in Spain and thematic seminars AECI Azahar PROGRAM: seminars are organized within the Azahar program, in the field of sustainable development, environmental protection and conservation of Natural Resources in the Mediterranean region. Financing of projects carried out by NGOs - through the financing of these projects the Spanish Cooperation tires to reach the most vulnerable groups in the Republic of Serbia, facilitating them free access to justice, and providing them with social and health services. Concessional Loan Fund (FAD) - in accordance with the rules of the OECD have concessional element of 35%. Fund for financing feasibility study (FEV) – grants for funding development of feasibility studies. MDG Fund - the Millennium Development Goals - An important aspect of Spanish development assistance activities in Serbia is realized through mutual engagement with international institutions, particularly within the Fund of the Millennium Development Goals, which is coordinated by UNDP in the Republic of Serbia. Kingdom of Spain has foreseen so far a

significant allocation for projects in the Republic of Serbia that will be implemented through joint fund as follows: "Sustainable Tourism for Rural Development, about 4.0 million dollars,"Support to national initiatives to promote youth employment and migration management”, about 6.1 million dollars, "Project for food safety and nutrition of children”, about 3.4 million dollars,"Promotion of peace building in southern Serbia”, about 2.5 million dollars, "For co-financing of projects budget is planned.

Special project acceptability conditions and criteria

The requirement to approve the financing of feasibility studies development is that the funds for the project which is approved by the feasibility study be provided, either from its own funds, whether grants or loans restricted tender is organized for the implementation of projects financed by Spanish concessional loans in which only Spanish companies can participate. An important feature of this financial instrument is that at least 70% of goods and services financed under the project must be of Spanish origin, more than 15% of goods and services by the project can be designed for local costs and up to 15% for goods and services from third countries

Description of procedures for programming, approving and project implementation, including time frame

Spanish Technical Cooperation Office for the Balkans in cooperation with the Ministry of Finance and the relevant ministries identify project proposals to be funded by the Spanish grants after project proposals have been prepared, forwarding them for approval to the Spanish Agency of International Cooperation at the latest by mid-November of the current year. In the most cases, information on whether the project is approved is available within approximately four months.Implementation starts in the same year depending on the fulfillment of other conditions (creation of the project team, the choice of implementers or the like.)Commercial Department of the Embassy of Spain in cooperation with the Ministry of Finance and relevant ministries responsible for areas defined as priorities for the Fund of concessional loans and development fund for financing feasibility study defines project proposals for which there is a possibility of financing from these funds. After making project proposals Commerce Department of Embassy of Spain forwards it to the competent Ministry of Industry, Tourism and Trade for consideration and if the proposal is evaluated positively, further evaluation by the Committee established by the Government of Spain and the OECD. When the project is officially approved, announcement of the restricted tender for selection of the Spanish contractor shall follow

Development partner Slovak Republic

Development/ implementing agencies

Until the beginning of 2007, the central agency for the implementation of the program (implementarni partner) was the Foundation for the support of civil activities in Slovakia - NPOA. Since January 2007, the Agency for International Development Cooperation – SAMRS has started its operations. The Agency was established as an organizational part of the Ministry of Foreign Affairs of the Slovak Republic

Strategic assistance – multiannual strategic document

"Medium-term official development assistance Strategy for the period 2003 - 2008" aims to define strategic goals and approaches to the development of Slovak politics and is the basis for future documents in five-year period, including the annual national programs, bilateral agreements with developing countries, financial policies, budget , etc. A new med-term strategy 2009-2013 is in preparation.

Legal grounds for cooperation

Previous relevant agreement on development cooperation was signed between the Council of Ministers of Serbia and Montenegro and the Government of the Slovak Republic, in June 2003. On the basis of this agreement Bratislava-Belgrade Fund (BBF) was formed, managed by NPOA until the end of 2006 and then SAMRS took management, from the time of its founding (in early 2007.). A significant innovation in policy of development assistance of the Slovak Republic to the Republic of Serbia is signing the Framework Agreement on development cooperation between the Government of the Republic of Serbia and the Government of the Slovak Republic, as a new legal framework of cooperation between the Parties. Financial memorandum, signed for each year, define the specific conditions and the amount of allocated funds. Seven of Financial Memorandums have been signed so far.

Relevant strategic documents for planning assistance

- At donor meeting held in November 2003 in Brussels, Slovakia presented its national strategy plan for Serbia and Montenegro, establishing priorities ODA-official development assistance (Country Strategy Paper - Slovak Official Development Assistance to the State Union Serbia and Montenegro) - “Mid-Term Strategy of official development assistance of the Slovak Republic for the period 2003 - 2008 "

Priority sectors/ intervention areas

- Although the financial resources for development assistance of the Slovak Republic for the period 2003-2008 were quite limited, due to quality of previous collaboration, the Republic of Serbia is one of the few "program" countries for the Slovak Republic.  This means that the development cooperation has been planned in the long run, larger amounts of financial resources allocated and bilateral agreements with the beneficiary country conclude (as opposed to the so-called. "Project" state, with which the Slovak Republic cooperates from project to project, therefore in the short term).

- In its donor policy, the Slovak Republic emphasizes a number of areas having significant potential and proportional advantages in comparison to other countries-donors.  For the Republic of Serbia, the priority sectors were established as follows: Integration of the Republic of Serbia in international organizations, civil society and support to regional development and development of small and medium-sized enterprises and infrastructure reconstruction

Types of funds/ financial instruments and models of assistance

Bratislava-Belgrade Fund - BBF - until the completion of initiated projects.This fund shall be replaced by a new fund, managed by SAMRS. Funds for the new fund are part of the state budget and managed completely by SAMRS as part of the Ministry of Foreign Affairs of the Slovak Republic

Special project acceptability conditions and criteria

- Special conditions of Slovak ODA (official development assistance) require that, within a call for submission, a sponsor may submit only one project proposal. The project proposal should be in accordance with the priorities of Slovak ODA.

- A special category of grants are micro-donations (microgrants) as well as donations of less value, intended for projects activities of which are mainly non-profit (eg organization of seminars, presentations, providing accommodation, etc.).. In this case, unlike the regular procedure, the potential micro-grants beneficiaries do not have to submit a proposal through the Slovak partners, but delivers it directly to the Embassy of the Slovak Republic in Belgrade, making a recommendation to the Ministry of Foreign Affairs and Ministry of Finance of Slovak Republic.Approximate amount of this type of donation is about five thousand euros

Description of procedures for programming, approving and project implementation, including time frame

- As part of official development assistance (ODA) of the Slovak Republic, profit and non-profit organizations, local governments, as well as state and academic institutions   can apply for grants, The maximum amount of donations, as well as national co-financing shall be determined separately in each invitation for bid submission.- As it was the case earlier in the BBF, and through a new fund managed by SAMRS, Slovaksubjects (ie users Slovak partners of beneficiary from the Republic of Serbia), in the procedure of applying with projects, shall submit project proposals to the coordinator of BB Fund in Bratislava, and/or pursuant to new procedure of Slovakiane Agency for International Development Cooperation.  The Serbian side cannot directly apply with their projects, but can affect it through their Slovak partners. Ministry of Finance (MoF) regularly deliveres the opinion on the proposals to all relevant ministries, therefore each ministry, within its competence, would propose financing of those projects in line with the strategy and priorities of the Government of Serbia

Development partner Kingdom of Denmark

Development/ implementing agencies DANIDA - the Danish International Development Assistance – part of Danish Ministry of Internal Affairs, administrating Danish ODA

Strategic assistance – multiannual strategic document

Denmark’s Development Policy – Strategy

Legal grounds for cooperation

There is no general agreement on development cooperation. At the time of this document, proposal of an agreement between the Government of the Republic of Serbia and the Government of the Kingdom of Denmark on Development Cooperation is in the procedure for the adoption by the Government.Serbian Government and the Government of the Kingdom of Denmark, on 7 September 2006,signed a Memorandum of Understanding regarding the implementation of the Programme of Local Economic Development in the Balkans, under which the Government of Denmark undertakes to finance program for economic development in the Balkans (LEDIB) in Serbia through grants.

Relevant strategic documents for planning assistance

Strategy of the Danish NeighbourhoodProgramme 2008-2012PRIORITIES OF THE DANISH GOVERNMENT FOR DANISH DEVELOPMENT ASSISTANCEOverview of the Development Assistance Budget 2009-2013

Priority sectors/ intervention areas

One of the major programs that are financed from the Fund Neighbourhood Programme in Serbia LEDIB (Local Economic Development in Balkans).  Serbia, along with Bosnia and Herzegovina is involved in the program LEDIB in the period 2006-2010, with a total value of 20 mil.EUR (withdrawal of funds depends on the quality of proposed projects in the Republic of Serbia). The aim of the program in Serbia is to improve the living conditions of the population of Nis district by developing small and medium-sized enterprises.  Also, through economic development and job creation, the program contributes to the reintegration of refugees and internally displaced persons

Types of funds/ financial instruments and models of assistance

Serbian Government, the Government of Denmark and the National Bank of Serbia signed on 24 th of October 2008, the financial agreement worth 2 million euros, for the implementation of subcomponent 2.3 of LEDIB - Better access to affordable credit, which will be used by small and medium-sized enterprises in Nis District operating in the textile industry and construction through selected intermediary banks

Special project acceptability conditions and criteria /

Description of procedures for programming, approving and project implementation, including time frame

/

Development partner UNDP

Development/ implementing agencies  /

Strategic assistance – multiannual strategic document

UNDAF, UNDP Country Programme Document

Legal grounds for cooperation

Standard basic agreement signed with the Government in 1989

Relevant strategic documents for planning assistance

Action plan Program for the State

Priority sectors/ intervention areas

Clusters: Building the institutions, poverty reduction and economic development, rule of law, human development, decentralization and local self-government

Types of funds/ financial instruments and models of assistance

Grant and technical assistance

Special project acceptability conditions and criteria UNDP projects and programs are developed based on the Program Document for the state and action plan program for the state, as well as the wider framework. These strategic

documents are prepared in cooperation with the Government. In addition, project documents are prepared in consultation with relevant partners in the government

Description of procedures for programming, approving and project implementation, including time frame

 

Development partner Republic of Italy

Development/ implementing agencies UNDP/UNOPS; UN-HABITAT; OIM; ILO; UNIDO;UNHCR; CFI

Strategic assistance – multiannual strategic document

In the process of creation

Legal grounds for cooperation

A new legal framework of cooperation and aid has not yet been approved, previous addressed to the Law no. 84/2001 for reconstruction projects in the Balkans that are implemented mainly through the Ministry of Finance and Law no. 49/1987 on the development cooperation via the Ministry of Foreign Affair

Relevant strategic documents for planning assistance

Multi-annual Indicative Programme document and the Poverty Reduction Strategy

Priority sectors/ intervention areas

decentralization and capacity building at local level, the environment, the private sector (SMEs), culture, Social, agriculture

Types of funds/ financial instruments and models of assistance

soft loans, grants and technical assistance through international organizations, NGOs and decentralized cooperation

Special project acceptability conditions and criteria

Based on the OSCE / DAC rules. To be approved, the project must: be a priority by the proposer, effective and efficient in terms of resources used for human and financial resources, complementary to other donor projects, in line with national objectives

Description of procedures for programming, approving and project implementation, including time frame

1. The government of the county beneficiary identifies the project; 2.Project is sent to the Ministry of Foreign Affairs together with the previous assessment conducted by the Technical Unit of the Italian Embassy in Belgrade, 3. The central unit, after checking the availability of funds for country beneficiary and compliance with all criteria, prepares a project proposal, 4.Project proposal asseses NVT; final project is approve by the Board in Rome. The procedure takes no less than one year

Development partner Federal Republic of Germany

Development/ implementing agencies Credit bank for reconstruction, (KfW) Technical cooperation organization (GTZ)

Strategic assistance – multiannual strategic document

none

Legal grounds for cooperation Agreement on technical cooperation and assistance

Relevant strategic documents for planning assistance

Assessment of the Republic of Serbia needs for International Assistance (2008 - 2010), Sustainable Development Strategy (2008), National Strategy for EU accession, the Poverty Reduction Strategy

Priority sectors/ intervention areas

KfW energy, municipal infrastructure-water supply and sanitation, banking-sector support to small and medium-sized enterprises; GTZ - legal reform, municipal services, privatization, education, small and medium-sized enterprises, financial sector, land reform / land register

Types of funds/ financial instruments and models of assistance

Donations (including technical assistance) and soft loans

Special project acceptability conditions and criteria

All projects within the framework of development cooperation must be consistent with the political, social and environmental programs of the state for the purpose of sustainable development

Description of procedures for programming, approving and project implementation, including time frame

1. Planning:• Consultations between the two governments on projects to be implemented using the budget for next year. For the Republic of Serbia, the process is manged by the Ministry of Finance• at the beginning of the year, a delegation of BMZ (german Ministry for Economic Cooperation and Development Germany) visited the Republic of Serbia in order to agree on the draft list of projects planned for the current year• Plan “Notes of talks about the work" - the document containing the plans and explanations of the German business sector ODA for the current year • signing of the “Notes of talks about the work" between the BMZ and the Ministry of Finance• Signing of the Financial Protocol and Special contract for each project listed in the list of projects, "Notes of talks on work" between the KfW, the relevant ministry (for energy projects - Ministry of Energy and Mining and the contract of loan - Ministry of Finance) and beneficiaries of the project (utilities, cities, EPS)

2. Implementation - projects from private sector to be implemented by KfW and GTZ, other projects are being implemented through local and international organizations

3. Monitoring, assessment and reporting – performed by implementing agencies KfW and GTZ. These agencies notify the Ministry of Finance on the progress and implementation of project

Development partner UNICEF

Development/ implementing agencies

Relevant ministries (Ministry of Health, Ministry of Education and Sports, Ministry of Labour and Social Affairs, the Ministry of Justice, Ministry of the Interiors, etc..), NGOs, government institutes, and so on

Strategic assistance – multiannual strategic document

Action plan for the country 2005-2009 (CPAP)

Legal grounds for cooperation

Framework agreement (BCA) concluded between the Government of FPR Yugoslavia and UNICEF on 11 th November 1947 and Statement by the Federal Republic of Yugoslavia in 1993 were the basis for cooperation between the Government and UNICEF

Relevant strategic documents for planning assistance

UNICEF medium-term strategy 2006-2009 (MTSP), the Framework document of the United Nations Development Assistance (UNDAF), PRSP, National Plan of Action for Children (NPA) and other national strategies (health, combating HIV / AIDS, youth and health , Roma education, social policy, etc.)

Priority sectors/ intervention areas Social exclusion, health, education, child protection, development of local government, the early development of children, inclusion of children, HIV prevention, juvenile justice

Types of funds/ financial instruments and models of assistance

There are two types of funds managed by UNICEF: 1 Own funds from UNICEF headquarters in New York; 2. Donor funds given directly for the implementation of programs in the country. There are three modalities of assistance: 1 financial aid, 2. Technical assistance and 3. supplying

Special project acceptability conditions and criteria

UNICEF does not implement projects that are not approved or supported. In the event when the project is supported, the acceptance of the project depends on meeting the criteria of UNICEF, as well as conformity with the purpose, objectives and outcomes set out in the MTSP, UNDAF and CPAP (Country Programme Action Plan - Action plan for programs in individual countries). All projects must have results in accordance with the protection of human rights

Description of procedures for programming, approving and project implementation, including time frame

Proposing, creating and supervision of programs and projects carried out in collaboration with national partners, in terms of CPAP (Country Programme Action Plan - Action plan for programs in individual countries) and annual operating plans. Projects can be approved during the program for the country, with all project activities to be completed during the same period

Development partner Kingdom of Norway

Development/ implementing agencies

Strategic assistance – multiannual strategic document

Specific priorities of the Kingdom of Norway regarding the Republic of Serbia in 2010 as follows: The process of economic, political and social reforms Supporting the reform of defense, security and justice Education Building and refor of the institutions, in terms of implementation of the Stabilisation and Association Process Economic development with special focus on employment especially the young, women and vulnerable groups Development of projects in energy-related environmental programs, including support to energy saving, development of clean energy as well as projects related to climate change EnvironmentMinorities, children, youth and women are important target groups. Aspects of environmental protection and gender equality should be included in all projects for which they are relevant

Legal grounds for cooperation

Memorandum of Understanding to be signed once a year for a package of assistance from the same year.

Relevant strategic documents for planning assistance

European Partnership, the National Strategy for the Republic of Serbia joining the EU, sectoral strategies, Poverty Reduction Strateg

Priority sectors/ intervention areas

The main goal of Norwegian bilateral assistance to Serbia is to support the processes of regional stabilization and European integration with special emphasis on the political, economic and social reforms, rule of law and democratic development

Types of funds/ financial instruments and models of assistance

Norwegian Parliament has approved about 60 million NOK for projects for 2010

Special project acceptability conditions and criteria

It is very important to consider, during the formulation of project ideas, that: project ideas must reflect the priorities defined in the European Partnership document, the Poverty Reduction Strategy and, of course, policy-sectoral strategy. Each proposal must have a component of capacity building, knowledge transfer, building institutions and clearly defined relationship with the institutions, both at national and local level. The draft must clearly explain how the problem will be treated in the context of other activities in the area and the added value of the proposed project. Ministry / beneficiary must have a clearly defined management and ownership of the project. As a last but equally important, note that the project must clearly show how the commenced activity will continue to be implemented even after the donor’s allocated funds have been speny, that is, project sustainability.

Description of procedures for programming, approving and project implementation, including time frame

Ministry of Finance, Department of Programming and Management of EU funds and Development Assistance, as a coordinator of assistance from the Kingdom of Norway opens the Call for project ideas for funding from the Norwegian bilateral assistance. The deadline for submission of projects is 20th of February. Norway shall decide on the priority project ideas before 20th of March, and they continue to develop in accordance with Norwegian format. The deadline for submission of complete project documentation is June 1st. No later than 1st of November 2009, Norway shall send letter to successful applicants approving the projects, by which they will formally begin.

Development partner Grand Duchy of Luxembourg

Development/ implementing agencies LUX - DEVELOPMENT AGENCY

Strategic assistance – multiannual strategic document

The main strategic direction of development assistance Luxembourg to the Republic of Serbia is focused on social issues and solving social problems, while the assistance is directed exclusively to the southwest of Serbia (Raska region) due to the large number of immigrants coming from the area

Legal grounds for cooperation

There is no general agreement on development cooperation so far. During the previous cooperation, the legal basis for the activities of Lux-Development in the Republic of Serbia was only a special grant contract for each program / project which have been implemented

Relevant strategic documents for planning assistance

None. The area of southwestern Serbia and sectors: health, education and water were defined strategically as a priority

Priority sectors/ intervention areas Sectors: health, education and water management.

Types of funds/ financial instruments and models of assistance

Grants including technical assistance and infrastructure works (building and reconstruction).

Special project acceptability conditions and criteria

There are no special conditions to be particularly met by the projects funded from the Luxemburg development agencies. The only condition is that the project proposals have to be in line with existing national sector strategies and/or priorities

Description of procedures for programming, approving and project implementation, including time frame

Luxembourg programs its assistance to the Republic of Serbia only after the existing projects have completed. Only after the completion of the projects, the Ministry of Foreign Affairs of Luxembourg begins to plan the next project from these priority sectors. Since the last multi-sector project has almost completed, the Ministry of Foreign Affairs of Luxembourg is currently considering approval for a new project in the field of water resources

Development partner Canada

Development/ implementing agencies CIDA

Strategic assistance – multiannual strategic document

Development program framework 2004-2010 - Canadian assistance to Serbia for the period 2004-2010 is mainly focused on three areas:1. Rule of Law: Support to reform efforts of the Serbian government, through assistance in the implementation and enforcement of the law effectively, fairly and in accordance with international standards. The reform of the judicial system will be introduced as a primary area of programming with a clear focus on training staff at all levels.2. Health Care Reform: CIDA will work with the Government of the Republic of Serbia to develop its institutional and technical capacity to provide basic health care.3. Education Reform: CIDA contributes to education reform through the improvement of technical and institutional capacity of relevant ministries for planning and providing education and training program development

Legal grounds for cooperation No framework agreement, but there are only memorandums on cooperation from previous years in the field of health care and justice

Relevant strategic documents for planning assistance

 

Priority sectors/ intervention areas Health care, education, justice

Types of funds/ financial instruments and models of assistance

Funds were approved for the period 2007-2010. As for the technical assistance, it was offered to the Ministry of Defence. There are also a small grant scheme for NGOs and local government

Special project acceptability conditions and criteria

Projects need to be in priority sectors (but other sectors are also acceptable, as NGOs), and to include co-financing projects.  The period of the approved project, ie. Implementation depends on the sector.

Description of procedures for programming, approving and project implementation, including time frame

The overall CIDA strategy for Serbia (2004-2010) was created in collaboration with the Ministry of International Economic Relations. CIDA cooperates directly on individual projects with assistance beneficiaries, with public or private sector (that is, ministries, other relevant institutions such as the National Assembly and specialized agencies and nongovernmental organizations).Projects are being implemented in collaboration with the Serbian users (institutions / ministries / organizations) and Canadian expert (s), and sometimes other agencies or the Canadian public and private organizations. Private sector organizations are usually selected through public invitation, published on the official website of CIDA

Development partner Czech Republic

Development/ implementing agencies  

Strategic assistance – multiannual strategic document

No documents. Only a sectoral assistance. The Czech Development Agency was established on 1st of January 2008

Legal grounds for cooperation /

Relevant strategic documents for planning assistance

Poverty reduction strategy, the document “Serbia in the move” as of 2003

Priority sectors/ intervention areas

Energy, industry, trade, environment, traffic, health care, agriculture

Types of funds/ financial instruments and models of assistance

About EUR 11.4 million will be available to Serbia from Czech development assistance within the period 2008-2010

Special project acceptability conditions and criteria

Projects need to be in priority sectors, and project co-financing also included. The period of approved projects i.e. implementation depends on sector (assistance has been planned for two years insome sectors, and for others for four years)

Description of procedures for programming, approving and project implementation, including time frame

/

Development partner Kingdom of Sweden

Development/ implementing agencies Swedish international development agency (SIDA)

Strategic assistance – multiannual strategic document

Strategy of cooperation with Serbia 2009-2012

Strategic plan for Serbia 2007-2013

Legal grounds for cooperation

Agreement between the Republic of Serbia and the Kingdom of Sweden on general terms and conditions of development cooperation, signed on 29 th of January 2007

Relevant strategic documents for planning assistance

Strategic Plan for Serbia 2009-2011, sectoral strategies and guidelines of SIDA, all proposals are evaluated from the point of their importance for the further integration of Serbia into the EU

Priority sectors/ intervention areas

Swedish development cooperation with Serbia is primarily focused on the following sectors:- Democratic government- Human rights and gender equality- Security Sector Reform

- Natural resources and environmenTypes of funds/ financial instruments and models of assistance

There are no different types of funds, these are projects / programs of development cooperation, which are prepared in a dialogue with the institutions of the recipient country (the Republic of Serbia

Special project acceptability conditions and criteria

Criteria:1. relevance in relation to poverty reduction and EU integration2. effectiveness and efficiency (co-financing is considered)3. validity4. Sustainability5. property6. assessment of the impact on the environment, gender equality and anti-corruption

Description of procedures for programming, approving and project implementation, including time frame

Swedish Development Strategy for the Republic is prepared in close cooperation with the Government of the Republic of Serbia (Ministry of Finance). The strategy will be implemented through the SIDA office in Belgrade. For individual projects, SIDA work directly with assistance beneficiaries from the public and the private sector (that is, ministries, and other relevant institutions such as the National Assembly, specialized agencies and nongovernmental organizations).Projects are in most cases implemented through cooperation Serbian beneficiary (institutions, ministries, organizations) and experts from Sweden or the relevant institution. Embassy of Sweden (SIDA office in Belgrade), monitoring the project, monitors the implementation of the project together with experts from Sweden and the relevant institutions

Development partner United Kingdom

Development/ implementing agencies United Kingdom international development department

Strategic assistance – multiannual strategic document

Regional plan of support to the West Balkans

Legal grounds for cooperation /

Relevant strategic documents for planning assistance

Strategic documents of the Republic of Serbia related to the sector within which DFID provides support

Priority sectors/ intervention areas

Improvement of the Government of the Republic of Serbia through the support to General Secretariat, the social sector, justice sector reform, public administration, promotion of efficient use of donor resources (donor coordination)

Types of funds/ financial instruments and models of assistance

About 3 m £ of grants will be available in the period from 2009 to the end of 2010.

Special project acceptability conditions and criteria

The main condition for providing support is that proposed activities are in accordance with the priorities and strategic documents of the Republic of Serbia

Description of procedures for programming, approving and project implementation, including time frame

DFID has no specific calendar used when programming assistance and support is provided when needed.

Development partner Kingdom of the NetherlandsDevelopment/ implementing agencies

EVD- Agency for international business and cooperation

Strategic assistance – multiannual strategic document

- "Mutual interests, mutual responsibilities - Dutch development cooperation en route to 2015 - "Our common interest - investing in development in a changing world" - the Dutch development cooperation policy 2007-2011

Legal grounds for cooperation

Memorandum of Understanding between the Government of the Republic of Serbia and the Government of the Kingdom of the Netherlands on G2G, PSO-M and MEC programs, signed on 16th of December 2009

Relevant strategic documents for planning assistance

Regional Approach for the Western Balkans

Priority sectors/ intervention areas

G2G.NL, including Environmental Facility - short term: Environment: the adoption and implementation of the acquis communautaire in the field of environment Agriculture: veterinary, food safety and phytosanitary issues, common agricultural policies (CAP), rural development Encouraging trade

Matra flex - short term: Finance: public finance management, internal financial control in the public sector, internal audit, budget process, fiscal policy, customs duties (administration, policy and regulation), Taxation (administration, policy and regulation), financial market (policy and regulation) and the Treasury ; Social Affairs and Employment: The Lisbon process (employment policy on the labor market, creating new opportunities within the Law on the work, improving job security, pension systems, funds (eg pension payments from the pension fund which was established by the employer), migration of laborforce, social dialogue, combating fraud (in the field of migration, encouraging the exchange of information and communication technologies to improve the exchange of information), the basic labor standards (combating child labor,

support to social dialogue and development of employees rights) and Structural Funds. Health, health care, public health, transmitable diseases, health systems, mental health and care of young people. Education: Vocational education and quality of education

Types of funds/ financial instruments and models of assistance

G2G.NL program:The program aims to strengthen bilateral cooperation between the institutions of the two governments, through institution building and capacity through the exchange of knowledge and expertise.

MATRA-FLEX program:The program aims to strengthen bilateral cooperation between the institutions of the two governments and strengthen government institutions in the development, adoption and implementation of national policies related to EU accession.

MTEC - MATRA Training for European Co-operation: Courses:The goal of course is training of the officials and employees in public administration for accession and cooperation with the EU. A network of employees in public administrations of countries of the participants is created through participation in courses.Course Topics:- Structural Funds / IPA- What to do in Brussels- Public finances management- How to work with Brussels- Public Relations

Academic Programs:The aim of the academic programs is to improve professional knowledge of promising young college graduates and young people in public administration in the field of good governance and international and EU law, as well as creating a permanent network among the participants of the program.Program Topics:- International law and EU law- Public Administratio

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Special project acceptability conditions and criteria

G2G.NL program:- The projects are proposed by ministries and other government institutions- Type of project: capacity building (TA, without investment)- Maximum project budget € 130,000 (average project budget: 100,000 EUR)- Maximum duration: 18 months- Projects must be from the above, priority areas- There should be no overlapping with other projects

MATRA-FLEX program:- The projects proposed by ministries and other government institutions- Type of project: capacity building (technical assistance, with no investment)- Maximum Project Budget € 100,000 (The average budget of project: € 83,000)- Maximum duration: 12 months- Projects must be from the above, priority areas- Projects must be relevant from the perspective of EU accession- There should be no overlapping with other project

Description of procedures for programming, approving and project implementation, including time frame

G2G.NL program:project proposals are submitted in the prescribed format throughout the year to G2G.NL National Coordinator of the Program (Ministry of Finance, Department of Programming and Management of EU Funds and Development Assistance), which forwards them to EVD.

MATRA-FLEX program:Project proposals in the prescribed format are submitted during the year to the National Coordinator MATRA-FLEX Program (Ministry of Finance, Department of Programming and Management of EU Funds and Development Assistance, Dejan Gojkovic), who forwards them to EVD.

MATRA Training for European Cooperation

www.cross-agency.nl

Development partner Republic of Korea

Development/ implementing agencies

Development assistance to developing countries is provided by the Republic of Korea through the Korean International Cooperation Agency, which is an official implementor of Korean development assistance

Strategic assistance – multiannual strategic document

Republic of Serbia, just as neither the region of Southeast Europe, is not among the priority regions supported by KOICA. Only about 3% of is intended for the region. In this regard, there is no defined and formally adopted strategy to help the Republic of Serbia. But Korean International Cooperation Agency in 2008 engaged additionally to organize several important seminars participated by civil servants of the Republic of Serbia.

Legal grounds for cooperation

There is no general agreement on development cooperation between Serbia and the Republic of Korea. In some individual cases exchange of notes between the two countries occured. In these cases, the legal basis of cooperation is a contract / agreement on the donation to be signed for each individual donation.

Relevant strategic documents for planning assistance

Priority sectors/ intervention areas

Republic of Korea, during so far cooperation with the Republic of Serbia, mainly supported sectors: public administration, privatization and business development, education and social policy. Assistance in the past consisted only of procurement of technical equipment and training conducted in the Republic of Korea

Types of funds/ financial instruments and models of assistance

Republic of Serbia has the following programs of cooperation available: 1. Training of civil servants in the Republic of Korea. 2. Technical assistance in the form of Korean experts who come to the Republic of Serbia. 3. Procurement of equipment. 4. Project co-operation

Special project acceptability conditions and criteria

For each of the above assistance programs, there are specific application forms that must be thoroughly filled in when applying for Korean assets. Application forms are tailored to each of the following types of assistance. The contents of this form mainly correspond to the usual requirements of each project proposal.

Description of procedures for programming, approving and project implementation, including time frame

Since there is no Office Korean International Cooperation Agency in the Republic of Serbia yet, planning and implementation of the assistance is conducted by the Republic of Korea Embassy in Belgrade. 1. Korea makes an annual plan of assistance and informs the Embassy in Belgrade. 2. Embassy of the Republic of Korea informes the Ministry of Finance on the type of planned support, notifying in the further stages relevant institutions / ministries and assists in the formulation of needs in accordance with the requirements 3. After consultation with the Ministry of Finance on defining needs (project proposals, a list of seminars and the necessary equipment), relevant institutions of the Ministry of Finance officially submit the application form to apply for funds available 4. After consultations with the Embassy of the Republic of Korea, Ministry of Finance forwards these documents to the embassy with the request to fund proposals from donations 5. Embassy of the Republic of Korea forwards agreed documents to the Ministry of Foreign Affairs of the Republic of Korea, submitting them to KOICA headquarters in Seoul for deciding 6. The Ministry of Finance is informed on the decision of KOICA via the embassy in Belgrade. All programs are implemented in the following year.

ANNEX 4FORMAT FOR ASSESSING DRAFT PROJECT PROPOSALS FOR FINANCING FROM IPA 2011

CRITERIA / SUB-CRITERIA Points per question

Points per criterium(max. points)

Assessment of draft project proposal(max 69)

1. Relevance (weighting: 22%)

1.1. Is the rationale of the project clearly identifying the issues the project will deal with?

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1.2. Is the overall objective of the project logically consequent to and coherent with the identified issues?

1.3. Are the specific objectives of the project coherent with its overall objective?

1.4. Are the beneficiaries and their relevant role clearly identified? 1.5. Is the coherence between the objectives of the project and the IPA 2011 selected priorities clarified adequately?

2. Effectiveness (weighting: 26%)2.1. Are the preconditions, presumptions and risks adequately identified and described? Have the exogenous factors potentially affecting achievement of expected outputs and results been qualified?

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2.2. Does the project contain indicative but detailed classification and quantification of resources necessary and already available for reaching objectives?

2.3. Does the project include an indicative description of the managing and implementing organization?

2.4. Are project’s expected outputs and results coherent with the objective and expressed in a measurable way?

2.5. Does the project include a breakdown of activities per components./.tasks?

2.6. Are sources of verification clearly mentioned? Are they „neutral“?

3. Efficiency (weighting: 22%)3.1. Does the project include a comprehensive workplan./.timeframe for its implementation?

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3.2. Does the project consider alternative workplans? 3.3. Does the project demonstrate that proposed workplan is more cost-efficient than other considered alternatives?

3.4. Does the project take into consideration other initiatives in the same or in related fields already undertaken by other donors or directly supported by the State budget?

3.5. Has the project been devised in such a way to minimise its implementation modalities (i.e.numbers and types of contracts)?4. Impact (weighting:17%)

4.1. Does the project indicate to which sectors other than the directly targeted one and to which extent relevant results will produce indirect and induced effects (measurable multiplying effects of the investment)?

124.2. Does the project indicate how and to which extent relevant results could be disseminated?

4.3. Have suitable (SMART) impact indicators been defined? 4.4. Does the project indicate and permit measurement of ex-post impacts on cross-cutting issues (e.g. genders’ equality, valorization of multiculturalism, environment and competition)?

5. Sustainability (weighting: 13%)5.1. Has the legal framework precondition for implementation already been passed and relevant specific and detailed regulations too?

95.2. Do long-term effects of the project have been identified, qualified and quantified?

5.3. To which extent expected results will continue to generate benefits after the end of the project?

Points for the answers: TOTAL: 69NO- 0 points partially – 1 pointYES- 3 points