1. Govrnment of Serbia Ministry of International Economic Relations Development and Aid Coordination Unit - DACU Planning and Programming CARDS Fund - Lessons Learnt Ognjen Miric Regional Conference EU perspectives and current standing of the countries in the region in the Stabilization and Association Process 7 – 8 December 2005 Belgrade, Serbia and Montenegro

2. Funds for the Western Balkan countries 2000 – 2006: 4.650 million euros (Albania, Bosnia and Herzegovina, Croatia, Macedonia and SCG) CARDS in the Republic of Serbia: 2002 - € 170.7 million 2003 - € 229 million 2004 - € 212 million 2005 - € 154.5 million total: € 766.2 million total: € 766.2 million 2006 - € 144 – 183 million EU FUNDS 2000 - 2006

3. Public Administration Reform€ 87 millionPublic Administration Reform€ 87 million Finance€ 42.5 mFinance€ 42.5 m Municipalities and Local Development € 76.2 mMunicipalities and Local Development € 76.2 m Justice and Home Affairs € 39.8 mJustice and Home Affairs € 39.8 m Integrated Border Management€ 18.7 mIntegrated Border Management€ 18.7 m Energy € 200.9 mEnergy € 200.9 m Transport € 78.5 mTransport € 78.5 m Environment € 36.5 mEnvironment € 36.5 m Agriculture € 38.5 mAgriculture € 38.5 m Economy€ 44 mEconomy€ 44 m Vocational Education and Training € 28.5 mVocational Education and Training € 28.5 m TEMPUS€ 17 mTEMPUS€ 17 m Support to Civil Society and Media€ 22 mSupport to Civil Society and Media€ 22 m Refugees and IDPs€ 21.5 mRefugees and IDPs€ 21.5 m Structure of assistance has been changing from humanitarian to development and capacity building phase STRUCTURE OF FUNDS IN SERBIA

4. EU funds participation: 20.3% Projects provided under one programme must end in period of 4-5 years SOURCE: ISDACON IS http://emis.mier.sr.gov.yu/Emis/PublicSite1/index.aspx FROM 2006: www.europa.sr.gov.yuhttp://emis.mier.sr.gov.yu/Emis/PublicSite1/index.aspx 2000200120022003 AD%AD%AD%AD% 175.1529.4917193.80202.44104172.55175.57102224.00154.4969 200420052006TOTAL AD%AD%AD%AD% 212.0021.6310148.00207.911400.00117.491.125.49909.0281 ALLOCATION AND DISBURSEMENT A = ALLOCATIONAll contracts must be signed 36 months from D = DISBURSEMENTdate of signing the Financial Agreement % = RATIO D vs. A

5. CARDS PROGRAMMING UP TO 2005 PROJECT CYCLE PROGRAMMING (identification and formulation) EAR Consultations with MIER and LMs IMPLEMENTATION Tendering and Contracting EAR MIER - if additional support is needed EVALUATION AND AUDIT EAR MIER – from time to time

6. IDENTIFIED GAPS AND ADVANTIGIES IN 2005 RULES LACK of OWNERSHIP LACK OF CAPACITIESand INSUFFICIENT NUMBER OF EMPLOYEES WEAK CONECTION WITH EU PRIORITIES INSUFFICIENCYor NO FICHES IDENTIFICATION OF GAPS IS AN ADVANTAGE IN IT SELF GUIDELINES FOR MANAGING EU FUNDS

7. CURRENT PRECONDITIONS The Working group is preparing first draft version of the Guidelines for Programming of EU AssistanceThe Working group is preparing first draft version of the Guidelines for Programming of EU Assistance The Working group consists of: MIER, MoF, MoPALSG, SEIO, PRSPThe Working group consists of: MIER, MoF, MoPALSG, SEIO, PRSP To be adopted by the Government as instruction used for programming of EU AssistanceTo be adopted by the Government as instruction used for programming of EU Assistance Technical Support Team to be established (MIER, MoF, MoPALSG, SEIO, PRSP)Technical Support Team to be established (MIER, MoF, MoPALSG, SEIO, PRSP) Support of the European Commission and EARSupport of the European Commission and EAR

8. Timeline EU assistance programming Budgeting Dec 2005 – Jan 2006 Starting the Programming Cycle – ’’Guidelines’’ Budget 2006 adopted by the Assembly Apr 2006 First draft of Fiches – developed by LMs with support of TST Minister of Finance indicates budget appropriations for 2007 Jun 2006 Second draft of Fiches – Comments of EAR Program Managers included Minister of Finance announces Draft Budget 2007 Nov 2006 Final version of Fiches – Comments of EC included Draft Budget 2007 submitted to the Assembly 15 th Dec 2006 Concluded List of Programs to be financed in 2007 Budget 2007 adopted by the Assembly Programming Cycle - Matching - Budgeting Cycle

9. Important contribution to the Public Administration ReformImportant contribution to the Public Administration Reform A roadmap towards DISA roadmap towards DIS Creation of ownershipCreation of ownership Strengthening Policy Driven PlanningStrengthening Policy Driven Planning Similar guidelines will be used for budget programming (process of programmatic budgeting)Similar guidelines will be used for budget programming (process of programmatic budgeting) Linking Budget with External ResourcesLinking Budget with External Resources Donor harmonization and efficiency use of fundsDonor harmonization and efficiency use of funds Coordination of institutionsCoordination of institutions ADVANTAGIES OF THE GUIDELINES

10. Political instabilityPolitical instability Responsibilities of the State Union (e.g. the Ministry of Defense)Responsibilities of the State Union (e.g. the Ministry of Defense) No consensus of national authoritiesNo consensus of national authorities Lack of capacities of the line ministriesLack of capacities of the line ministries Weak interest and involvement of other beneficiariesWeak interest and involvement of other beneficiaries THREATS TO THE PROGRAMMING PROCESS

11. PROJECT CYCLE PROGRAMMING (identification and formulation) NATIONAL AUTHORITIES Consultations with EC Delegation IMPLEMENTATION Tendering and Contracting EC Delegation EVALUATION AND AUDIT EC Delegation PROGRAMMING OF THE EU FUNDS FROM 2007

12. Increase number of employees working on EU issuesIncrease number of employees working on EU issues Capacity building of the national authorities (e.g. training, seminars, salaries etc.)Capacity building of the national authorities (e.g. training, seminars, salaries etc.) Support of the EC and exit strategy for EAR Programming SectionSupport of the EC and exit strategy for EAR Programming Section Consensus and strong linking and involvement of national authoritiesConsensus and strong linking and involvement of national authorities Establishment of institutions related to DISEstablishment of institutions related to DIS Developing reliable monitoring and evaluation processDeveloping reliable monitoring and evaluation process FUTURE PRECONDITIONS AND STEPS

13. MINISTRY OF INTERNATIONAL ECONOMIC RELATIONS Vlajkoviceva 10 Belgrade office@mier.sr.gov.yu www.mier.sr.gov.yu