Government of the Republic of Serbia Ministry of Construction, Transport and Infrastructure Single project pipeline - tool for concentrated economic development - Pristina 25/03/2015

Why Single Project Pipeline To avoid ad hoc approach to planning preparation and implementation of infrastructure projects To meet the necessity for strong project prioritization (developed set of criteria reflecting EU and national strategy and policy goals focusing on economic development) To enable systematic and timely planning of resources To provide reliable basis for defining proper sequencing of the actions To help linking investments planning and program budgeting

Methodology for selection and prioritisation of infrastructure projects Adopted by the Government (as an annex to the document National Priorities for international assistance to the Republic of Serbia for the period 2014 to 2017 with the projections up to 2020) Basis for the Single Project Pipeline. Covers energy, transport, environment and business related infrastructure. Based on two basic pillars: Strategic relevance of the project Project readiness/maturity for implementation

Methodology development process Comprehensive consultative process involving all relevant stakeholders (line ministries, public utility companies and public and civil society organizations etc.) Supportive approach by and active participation of the Delegation of the European union in Serbia and the European Commission (DG NEAR) Consultations with the International Financial Institutions and bilateral donors Sector Working Groups (SWGs) coordinated by Serbian European Integration Office (SEIO) as a main mechanism for consultations

Methodology flow chart 1. Collect existing infrastructure project ideas/proposals Project identification form (PIF) 2. Identify broad list of projects by completion of Project Identification Forms Strategic Relevance Assessment criteria (based on PIF) 3. Strategic Relevance Assessment (filtering step) 4. Short list of strategically relevant projects Gap Assessment Questionnaire /Gap Assessment Report 5. Gap Assessment Analysis of strategically relevant projects 6. Final list of prioritized projects (to be included in ISDACON)

Scoring of transport sector projects Two phases: Scoring (which is not final) based on Strategic relevance criteria: Consistency with EU, national, transport policies/strategies Demand/supply and origin/destination factors Relation with other transport corridor/routes Traffic safety and security of transport Economy systems and sectors affected by the project

Scoring of transport sector projects Final scoring based on GAP report; projects divided into 4 groups according to their degree of maturity: Group 1 – Ready for tendering and investment realization: Group 1a – projects with technical documentation prepared, ready for tender preparation or tendering Group 1b – projects with preparation of technical documentation ongoing, and ready for tendering when it is finished Group 2 - Ready for preparation of technical documentation: Group 2a – projects with spatial planning documentation completed with preconditions for land acquisition in place Group 2b – projects with gaps in spatial planning documentation with preconditions for land acquisition still pending

Single Project Pipelines of sectors Transport Sector Projects (26 projects) € 5,512.50m Waste Water Subsector Projects (17 projects) € 438.45m Energy Sector Projects ( 39 projects) € 4,487.70m Solid Waste Projects (15 projects) € 399.90m Business related infrastructure projects (12 projects) € 57.95m TOTAL € 10,896.50m

Project Passport Project Passports are prepared for all the projects from the single project pipelines on the basis of the inputs from the Gap Assessment Reports. Project Passport is an overview of all the steps which should be done in the course of project preparation and implementation, projects’ tentative costs and the responsible institution. Project passport ensures that all the steps are considered in a realistic time perspective.

Project Passport example Highway Belgrade – South Adriatic (E-763) Beograd-Boljare-Podgorica-Bar Comments Institution responsible Year 1 Year 2 Year 3 Year 4 Year 5 Indicative cost estimation (EUR) Indicative source of financing Q1 Q2 Q3 Q4 Beograd - Obrenovac Length of the route 17.6 km. Under negotiation with concessionaire Ministry of Transport, Roads of Serbia   170.000.000 Concession Obrenovac - Preljina Length of the route 103.07 km. Under construction Koridori of Serbia 700.000.000 Republic of Serbia, Republic of China, Republic of Azerbaijan Preljina - Pozega Length of the route 30.96 km 286.000.000 Pozega - Boljare Length of the route 107 km 1.830.857.578 Preparation of Spatial Planning documentation Infrastructure Corridor Special-Purpose Spatial Plan Infrastructure Corridor Special-Purpose Spatial Plan Pozega-Boljare. Decision for provision approved (Official Gazette of RS, No. 3/11). Under preparation Government of Serbia 9.150.000 Municipal spatial plan As the Infrastructure Corridor Special-Purpose Spatial Plan will be used for issuance of Location requirements it is not conditional to update Municipal Spatial Plans, General Urban Plans and General Regulation Plans for implementation of this project, although these plans has to be justified with higher level spatial plans. General urban plan General regulation plan B Not necessary Urban design Not required Elaborate on Expropriation for locations needed Elaborate should be prepeared PE Roads of Serbia Decision on Public Interest Request for Public interest declaration to be submitted Land acquisition Not started TOTAL Preparation of technical documentation Preparation of pre-feasibility study Pre-feasibility Study for highway E-763 Belgrade-South Adriatic Area, Section III Pozega-Montenegrin border General design General Design for highway E-763 Belgrade-South Adriatic Area, Section III Pozega-Montenegrin border Review of the General Design & Prefeasibility study State Revision Committee Site investigation Feasibility study (with CBA according to the EU requirements) 10.000.000 IPA Preliminary design 45.000.000 Review of the preliminary Design & Feasibility study Desin for Construction permit and technical control Technical control has to be independent 30.000.000 Environmental and Social Impact Assessment study Full EIA is compulsory per EIA legislation Scope and content application to be sent to the Ministry Ministry for Energy, development and environemntal protection Preparation 5.000.000 Approval approval issued by the Ministry Ministry for Energy, development and environmental protection Permits Location requirements Ministry of Construction, Transport and Infrastructure Construction permit Preparation of tender documentation and tendering procedure This is the case if the contract is "design and build" 200.000 90.200.000 Institutional Establishment of PIU MoT, PE Roads of Serbia TOTAL PROJECT PREPARATION TOTAL INVESTMENT REALISATION* SUPERVISION Supervision will lastduring project implementation/construction 82.300.000 O & M COSTS/year This is estimated cost per year 2.142.000 Boljare - Podgorica - Bar Length of the route 183 / 167 km. Republic of Montenegro Government of Montenegro 1.950.000.000 Podgorica - Granica sa Albanijom Length of the route 000 km.

National Investment Committee Provides political support to operationalisation of the single project pipeline Its recommendations and actions are based on the Single Project Pipeline. Represents key platform for the discussion on critical issues and steps related to the specific projects from the single project pipeline. Enables synergy between various sources of financing (budget, loans, and grant funds) with the aim to achieve substantial leverage effect.

National Investment Committee (NIC) Minister of Finance and NIPAC Ministry of Construction, Transport and Infrastructure Ministry of Economy Ministry of Public Administration and Local Self Government Ministry of Agriculture and Environment Ministry of Mining and Energy EC , IFIs, bilateral partners SEIO is a technical secretariat of NIC Sector Working Groups

Key considerations ahead: Single project pipelines are updated annually Joint Assistance to Member States and Candidate countries provided by European Commission/EIB/EBRD (JASPERS) and Project preparation facility (PPF) assistance is essential for quality project preparation and mirroring/practicing EU-ESI funds principles Synergy between EU funds (IPA national, IPA regional-Western Balkans Investment Framework), International Financial Institutions and budget resources coordinated by NIPAC Promotion of PPP as a modality of financing of infrastructure projects Proper reflection of the Single project pipeline methodology in the Budget System Law

Thank you!