Ministry of Finance Contribution of the Operational Programmes to the implementation of the NSRF 2007 -2013 objectives Boriana Pencheva Director Management of EU Funds Directorate Ministry of Finance 20 June 2008 Second NSRF Monitoring Committee

Contents Annual report on the NSRF implementation for 2007 Strengthening of the administrative capacity

Annual report on the NSRF implementation Analysis of the Progress Achieved Indicators review Information on financial implementation Information with regard to the conformity of National legislation Additionality with Financial instruments Information on Operational programmes implementation Information and publicity measures in the process of NSRF implementation

Annual report on NSRF implementation Analysis of the Progress Achieved Successful completion of the programming and negotiation process of NSRF and OPs 27 September2007 - first approved OP „Development of the competitiveness of BG Economy” Launched calls for proposals: OP “Administrative capacity” – 9 calls at the amount of 34 mln BGN OP “Human resources development” – 6 calls at the amount of 87,7 mln BGN OP “Regional Development” – 6 calls at the amount of 934 mln BGN OP “Competitiveness” – 3 calls at the amount of 66,5 mln BGN

Annual report on NSRF implementation Indicators review Strategic Objectives Indicator Baseline Target Level achieved for 2007 1. Develop a competitive economy to achieve high and sustainable growth 1. GDP per capita (in PPS) as share of EU average 32.1% (2005) 51.2% (2013) 38.1% 2. GDP growth (yearly average period) 5% (2000-2006) 5.73% (2007-2013) 6.2% 3. Exports/GDP ratio 60.8% (2005) 89.77% (2013) 63.4% 2. Develop human capital to ensure high employment, income and social integration; 1. Rate of employment 55.8% (2005) 64% (2013) 61.7% 2. Rate of unemployment 10.1% (2005) 7% (2013) 6.9% 3. At risk of poverty 14.2% (2005) 13% (2013)  

Annual report on NSRF implementation Indicators review Strategic Objectives Indicator Baseline Target Level achieved for 2007 1. Improving basic infrastructure 1. Increased economic growth due to improved transport connectivity and reduced transport costs   2. Time savings, million of hours 0 (rails) 2.3 (2013) – rails 3. Increased attractiveness of selected regions and localities due to higher ecologic quality of life 1.3 (2013) – highways 4. Population connected to WWTP 40.5% (2004) 66.46% (2013) 2. Increasing the quality of human capital with a focus on employment 1. Participation rate – aged 15-64. 62.1% (2005) 68.5% (2013) 66.3% 2. Percentage of the adult population aged 25 to 64 participating in education and training 1.3% (2005) 5% (2013) 3. Percentage of the population aged 18-24 with at most lower secondary education and not in further education or training 18% (2005) 16% (2013)

Annual report on NSRF implementation Indicators review Strategic Objectives Indicator Baseline Target Level achieved for 2007 3. Fostering entrepreneurship, favourable business environment and good governance 1. Labour productivity 3.5% (2005) 5% 3.4% 2. FDI inflow EUR 11.7 mln EUR 21.7 mln EUR 5.9 mln 3. Maximum N of days for registering a new enterprise 32 (2006) 1 (2013) 30 2. Maximum N of procedures for registering a new enterprise 9 (2006) 1 4. Supporting balanced territorial development 1. Increased income and employment in less developed and peripheral areas due to Cohesion Policy interventions 0%  

Annual report on NSRF implementation Information with regard to the conformity of National legislation Since 1 January 2007 Bulgaria has applied its national legislation to the expenditure of resources from the Structural Funds In 2007 the regulatory framework defining the procedures and mechanisms ensuring effective management of the EU funds was drafted

Annual report on NSRF implementation Additionality with Financial instruments On 14 December 2007 Ministry of Finance signed a EUR 700 million loan agreement with the European Investment Bank Co-financing, on a priority basis of projects under OP “Transport” and OP “Environment” Co-financing of projects under the rest operational programmes and certain activities under the Rural Development Programme

Annual report on NSRF implementation Information and publicity measures in the process of NSRF implementation Ceremony on the official signing of NSRF- 22 June 2007 Be active campaign – March-June 2007 Campaign reached 84% of the general public in the 25-60 age group 53 leading national and regional news papers and electronic media Establishment of national network of informational and publicity officers in Bulgaria Ministry of Finance awareness raising campaign with the cooperation of Nova TV with regard to the enhancement European Cohesion Policy 20 short films broadcasted in the period 03 December 2007 – 14 February 2008

Strengthening of administrative capacity An interinstitutional working group was established in order to review the possibilities of strengthening of the administrative capacity in the structures involved in EU Structural instruments management and control The working group has made specific proposals as regards to: Optimization of the numbers of the administrative structures and units Application of result oriented renumeration mechanism for the experts involved in management, monitoring and implementation of EU Structural instruments Improvement of the transparency and information awareness in the process of EU Structural instruments management Draft Law on Conflict of Interests has been prepared, providing for submission of declaration from the state servants for circumstances, which could lead to conflict of interests

NSRF implementation up to 12 June 2008 Operational Programme Budget Amount of contracts signed % of contract signed as a share form the OP budget Payments made to the beneficiaries Certified expenditure “Transport" 3 177 205 981 7 368 280 0,23% “Environment" 2 868 078 949 0,00% “Regional Development" 2 662 048 030 78 390 124 2,94% “Competitiveness" 1 932 131 636 “Technical Assistance" 94 459 769 15 649 435 16,57% “Human resources Development" 2 018 004 152 22 509 419 1,12% 4 501 883,89 “Administrative capacity" 300 553 812 35 093 237 11,68% 4 876 918 TOTAL 13 052 482 328 159 010 495 1,22% 9 378 801,89

THANK YOU FOR YOUR ATTENTION! Ministry of Finance THANK YOU FOR YOUR ATTENTION! Boriana Pencheva Director Management of EU Funds Directorate Ministry of Finance