Sintra 27 November, 2009 Regional Approach to Development Challenges of South East Europe

The RCC’s Objectives:  Contributing to the enhancement of stability, security, mutual respect and open dialogue in South Eastern Europe  Facilitator of Euro and Euro-Atlantic integration  Rebranding the image of SEE and instilling the notion of regional cooperation  Acting as a key interlocutor and operational link between the EU and the SEECP with regard to project generation and prioritization particularly in the context of the European Commission’s Multi- Beneficiary Instrument for Pre-Accession Assistance (MB IPA)  Coordinating international political, technical and financial support  Presenting a regional forum for dialogue among different countries, international organizations and other partners.

RCC Achievements May2008-November2009:  Completed transition process from the Stability Pact for the SEE to RCC  Political consultations with RCC members  RCC presentations held in the SEE capitals  Mapping of national priorities regarding regional cooperation in SEE  Coordination and streamlining of SEE regional initiatives and structures  Initiated networking process among RCC Secretariat, members from SEE, EC and IFIs (including Multi-Beneficiary IPA and IFIAG)  Cooperation with other regional organizations and initiatives (CEI, BSEC, AII, Danube Cooperation Process)

RCC Programming Role – complex inputs:  4 categories of beneficiary countries: EU members, candidates, potential candidates and a country covered by EU Neighbourhood Program  Diversified players: beneficiary countries’ institutions, regional initiatives, EU, IFIs, other international organizations, individual donor countries, private foundations, business sector, local communities networks etc.  Different priority areas: economic and social development; energy and infrastructure; JHA; security; and building human capital.

RI National represen t. SEE Members National coordinators International Organizations EU, CoE, UN,OSCE, OECD, WB and others Donors EU, IFIs, individual donors RCC Board 29 Members SEECP Civil society organizations Business RCC PLATFORM

RCC-EC MBIPA Programming Process EU Assistance for IPA Beneficiaries: - Achievement of the EU standards SEE efforts to achieve: - Regional development priorities - EU standards SEE Countries’ Regional Interests EU interests National Interest MBIPA Cross border Cooperation

Challenges:  Proliferation of different support programs and regional initiatives.  Institutional competition.  Insufficient donor coordination.  Greater coherence of assistance mechanisms and sequencing needed.  Discrepancy between regional ownership, leadership and regional program and project implementation capacity.  Moving beyond dialogue to greater results orientation.

Risks: Effects of the global economic crisis in the region; Slowing down of the European integration process in the Western Balkans; Deterioration of bilateral political relations in the region; Fragility of the established regional structures.

In its priority areas RCC will:  Help providing a coordinated response to the global crisis.  Act in a pro-active way based on a strategic approach and in accordance with national priorities, in particular regarding the EU accession.  Develop regional programs to be supported by relevant international organizations and other donors.  Help its SEE members and regional initiatives and task forces to acquire lacking knowledge and expertise in management of the project cycles.

Energy and Infrastructure

The overall objectives of the RCC are: Strengthening regional infrastructure cooperation and integration as the preceding steps towards wider EU integration; Offering assistance for compatible infrastructure reforms of SAP countries; Promoting the regional approach in addressing infrastructure needs; Sustainable infrastructure development as an important prerequisite for the overall sustainable economic growth in the long-term.

Energy and Infrastructure Achievements: Intensified and improved bilateral and regional cooperation in energy and infrastructure development in the last decade. All RCC members from SEE included in the expanding Energy Community. 7 out of 12 RCC members from SEE included in the MoU on Core Transport Network and Transport Community Treaty Negotiations with possibilities for the expansion of the geographical scope. 9 out of 12 included in ECAA, and SEE FABA. 9 out of 12 RCC members from SEE included in the REC with REC country offices. Completion of REReP and its transformation to the RENA. Numerous regional initiatives, task forces, projects supported by the EC, bilateral and multilateral donors, IFIs and national contributions. Creating and developing the inventory of priority projects.

Energy and Infrastructure Achievements: RCC established cooperation with main partners: EC relevant DGs; ECS, SEETO and REC that are fully operational. RCC supports and cooperates with variety of regional organizations, TFs, initiatives, projects and NGOs (BSEC, CEI, AII, UNECE, BSREC, IENE, WEC SEE TFE, NALAS, EFSDR, RENEUER, DCP, DC, ICPDR, ISRBC, REReP, PEIP, ENVSEC, ECENA, B&H CEE, EnEffect, REIC…) RCC prepares Infrastructure Project Proposals, in cooperation with beneficiaries and regional organisations, to be financed through MB IPA, donor community and national contributions.

Energy and Infrastructure Achievements: RCC co-organizes and hosts the infrastructure events. RCC points out and contributes in addressing the major bottlenecks in the infrastructure development; RCC promotes an approach that more advanced RCC members from SEE assist to those coping with the infrastructure reform delay; It promotes continued involvement of international donor community, expansion of regional cooperation supporters and private sector participation; RCC monitors strategic infrastructure developments internationally.

Energy and Infrastructure Challenges: Low energy security in the region. Urgent need to develop environmentally friendly and economically viable transport modes and inter-modality. Climate Change vulnerability of the region. Deteriorating financing opportunities for the development of infrastructure. Tariffs for infrastructure products and services that do not reflect costs and are conflicting to affordability.

Energy and Infrastructure Challenges: Slow decision making process to construct new infrastructure. Lack of fair, transparent and diligent public tendering procedures when contracting the project. Insufficient mechanisms in attracting private sector participation in financing infrastructure development. Delay in implementation of EU infrastructure requirements and ensuring the enforcement of relevant treaties. Shortage of comprehensive public support to infrastructure reform and development.

Energy and Infrastructure Recommendations: Efficient development of legal, regulatory and institutional frameworks in compliance with the acquis primarily specified within relevant infrastructure acts and treaties. Establishment of regional infrastructure markets as integral elements of Trans European Networks based on compatible national models. Strengthened partnership among all stakeholders (governments, industries, trade unions, research centers, academia, local authorities, NGOs etc.) and, in particular, use advantages of the PPP model in infrastructure development. Coordinated approach of EC, IFIs and donor community to support regional infrastructure development. Zero carbon economy in the long-term – tool for combating crisis, new employment, various social and economic opportunities.

Energy and Infrastructure Recommendations: Establishment of mechanism of coordination between the main infrastructure players in order to promote integrated approach and multidisciplinary projects as response to multidisciplinary challenges. Raising awareness of policy makers on the importance of regional approach in improving energy and infrastructure markets, planning and attracting investments, ensuring the stable and continuous energy supply and infrastructure services. Raising awareness of parliamentarians on the substance, scope and dynamics of necessary national infrastructure reforms in order to improve the lawmaking process in the region and parliamentarians ability to oversee their governments` activities.

Energy and Infrastructure General assessment: Regional cooperation in the area of infrastructure is a success story due to its role in the European integration, cross-border nature, importance for the overall development, benefits from keeping regional approach. Countries recognized importance of regional cooperation in the area of energy, transport and environment, but, due to limited administrative capacities, exchange of information and inputs has not been fully and timely provided.

Energy and Infrastructure Objectives of the RCC in the period : Continuation of developing synergies with the Energy Community. Co-organizing, jointly with the parliaments from the region and in coordination with the ECS, a sequence of tailor-made workshops for parliamentary committees responsible for energy issues from SEE (2009 – 2011). Launching, jointly with the CEI, the initiative on sustainable energy development ( ). Organizing an event that would gather regional ″energy″ NGOs (2010) ITWRM in SEE Regional Workshop follow–up activities ( ). Completion of FP agreed with REC (2010).

Energy and Infrastructure Objectives of the RCC in the period : Continuing of cooperation with the REC in combating CC and examining other possible areas of cooperation. Support to the implementation of the EU-funded RENA programme, once the ReReP project has been completed. Co-organizing sequence of tailor-made workshops for parliamentary committees responsible for environmental issues based on RSPC proposal ( ). Elaborating, indicating and proposing, together with SEETO, trans- regional infrastructural projects based on the inputs from the RCC members from the region, and contributing to the faster development of the defined infrastructural transport corridors in the region.

Energy and Infrastructure Objectives of the RCC in the period : Organization of a high-level event supporting implementation of the UN General Assembly Resolution on Road Safety by the RCC members from SEE (2010). Continuation of assistance in the implementation of the ECAA through support for participation of the regional countries in the SEE FABA initiative. Examining the possibilities for regional cooperation between civil aviation authorities in different areas, such as accident investigation, licensing, safety oversight of airlines, CC impacts etc. Initiating establishment of mechanism of coordination between the ECS, SEETO and the REC – to promote multidisciplinary projects and approaches (2010).