how to manage effectively the financial implementation of the operational programmes lazar todorov...
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How to manage How to manage effectively the financial effectively the financial implementation of the implementation of the
operational operational programmesprogrammes
Lazar TodorovHead of Department
“Management of EU Funds” Directorate
Ministry of Finance
Ministry of Finance 09.10.2008, Open days, Brussels
Ministry of Finance09.10.2008, Open days, Brussels
CONTENTSCONTENTS
Introduction of the LOTHAR system in Bulgaria;
Main advantages and main problems so far;
First forecasts and first results;
Next steps
EU EU SSTRUCTURAL TRUCTURAL IINSTRUMENTS ALLOCATIONS NSTRUMENTS ALLOCATIONS FOR FOR BBULGARIA 2007-2013ULGARIA 2007-2013
Objective/Fund Budget (€) Share
Convergence 4.391 bln 64.1 % ERDF3.205 bln 72.9 % ESF 1.186 bln 27.1 %
Cohesion Fund 2.283 bln 33.3 %
Total 6.674 bln 97.4 %
European Territorial Cooperation ERDF 179 mln 2.6 %
TOTAL 6.853 bln 100.0 %
Ministry of Finance 09.10.2008, Open days, Brussels
Operational
Programme
Financial Allocation (mln €)
OP “Transport” 1 624 (ERDF + CF)
OP “Environment” 1 466 (ERDF + CF)
OP “Regional Development” 1 361 (ERDF)
OP “Human Resources Development” 1 032 (ESF)
OP “Competitiveness” 988 (ERDF)
OP “Administrative Capacity” 153 (ESF)
OP “Technical Assistance” 48 (ERDF)
BACKGROUND INFORMATIONBACKGROUND INFORMATIONBACKGROUND INFORMATION
Ministry of Finance 09.10.2008, Open days, Brussels
Ministry of Finance 09.10.2008, Open days, Brussels
THETHE LOTHAR SYSTEMLOTHAR SYSTEM
Necessity to:
Develop management and monitoring systems and tools
Comply with N+3/2 rule
Set up a system for early warning
Ministry of Finance 09.10.2008, Open days, Brussels
THE INTRODUCTION OF THE LOTHAR THE INTRODUCTION OF THE LOTHAR SYSTEM IN BULGARIASYSTEM IN BULGARIA
Working group was set up;
The tables were jointly developed with the EC;
The first forecasts were elaborated and “frozen” for 1
year following Council of Minister’s Decision;
The first updates have been prepared as the first quarter
expired in the end of September 2008.
Ministry of Finance 09.10.2008, Open days, Brussels
THE MAIN ADVANTAGES THE MAIN ADVANTAGES
Clear picture of the financial implementation of each OP;
Early warning system for identifying problems related to
the absorption of the Funds (at the level of the
OP/priority/operation/call;
Opportunity to undertake corrective measures in time.
Ministry of Finance 09.10.2008, Open days, Brussels
THE MAIN CHALLENGESTHE MAIN CHALLENGES
The system is sophisticated;
Forecasting for a longer period is difficult;
The forecasts might be unrealistic;
System is still evolving;
Unwillingness of the MAs to use the system as a measurement
tool.
Ministry of Finance 09.10.2008, Open days, Brussels
FIRST FORECASTS, FIRST RESULTS FIRST FORECASTS, FIRST RESULTS
Forecasts were “frozen” in June;
First quarterly review was made in September.
OP “Regional Development” ForecastOP “Regional Development” Forecast
0
200 000 000
400 000 000
600 000 000
800 000 000
1 000 000 000
1 200 000 000
1 400 000 000
1 600 000 000
I/07
III/0
7I/0
8III
/08
I/09
III/0
9I/1
0III
/10
I/11
III/1
1I/1
2III
/12
I/13
III/1
3I/1
4III
/14
I/15
III/1
5
NSRF Commitments
N+3/2
Contracting
Payment
Certification
Ministry of Finance 09.10.2008, Open days, Brussels
By the end of Q3 we should have 62 659 354
contracted projects for the OP “Regional Development”
OP “Regional Development” actual performanceOP “Regional Development” actual performance
Ministry of Finance 09.10.2008, Open days, Brussels
OP Regional Development
0
200 000 000
400 000 000
600 000 000
800 000 000
1 000 000 000
1 200 000 000
1 400 000 000
1 600 000 000
Time
Fin
anci
al D
ata
Commitments
N+3/2 Adv. Excl
Baseline for contracting
Total EU share of contracted projects
Baseline for payments
Total EU share paid
Baseline for certification
Total certified to the EC
Total EU share of contracted projects
is 105 773 035.
OP “Regional Development” actual performanceOP “Regional Development” actual performance
OP Regional Development
0
50.000.000
100.000.000
150.000.000
200.000.000
250.000.000
300.000.000
350.000.000
400.000.000
450.000.000
500.000.000I/
07
II/0
7
III/
07
IV/0
7
I/08
II/0
8
III/
08
IV/0
8
I/09
II/0
9
III/
09
IV/0
9
I/10
II/1
0
III/
10
IV/1
0
I/11
II/1
1
III/
11
IV/1
1
I/12
II/1
2
III/
12
IV/1
2
I/13
II/1
3
III/
13
IV/1
3
I/14
II/1
4
III/
14
IV/1
4
I/15
II/1
5
III/
15
IV/1
5
Time
Fin
anci
al D
ata
OP “Regional Development” actual performanceOP “Regional Development” actual performance
A case of over performance for Q3 2008
0
20.000.000
40.000.000
60.000.000
80.000.000
100.000.000
120.000.000
fore
ca
ste
d
co
ntr
acte
d
fore
ca
ste
d
pa
id
fore
ca
ste
d
ce
rtifie
d
contracting payment certification
OP “Regional Development” actual performanceOP “Regional Development” actual performance
Case of underperformance Q3 2008 Priority axis for TA
0
1.000.000
2.000.000
3.000.000
4.000.000
5.000.000
6.000.000
7.000.000
8.000.000
9.000.000
forecasted contracted forecasted paid forecasted certified
contracting payment certification
Ministry of Finance 09.10.2008, Open days, Brussels
NEXT STEPSNEXT STEPS
to achieve the baselines “frozen” for the first year;
to embed the LOTHAR system in the Unified
management information system
Ministry of Finance 09.10.2008, Open days, Brussels
Thank you for your attentionThank you for your attention!!