1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 11 – Agriculture and Rural Development Bilateral screening: Chapter 11 PRESENTATION OF THE MONTENEGRO Brussels, 11 – 13 December 2012

2. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Preparations for IPARD Irina Vukčević Head of the Department for Programming, Sector for Rural Development Ministry of Agriculture and Rural development irina.vukcevic@mpr.gov.me Luka Đukanović Adviser, Sector for Payments Ministry of Agriculture and Rural development luka.djukanovic@mpr.gov.me Chapter 11: Agriculture and Rural Development

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  EU Legal Framework  National Legal Framework  General Institutional framework under IPA(RD)  National Fund  Organizational chart - Ministry of Agriculture and Rural Development  Operating Structure  Sector for Rural Development – Managing Authority  Sector for Payments - IPARD Agency  World Bank project - MIDAS project Contents Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

4. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union EU LEGAL FRAMEWORK Chapter 11: Agriculture and Rural Development Council Regulation (EC) No 1085/2006 Commission Regulation (EC) No 718/2007 Commission Regulation (EU) No 80/2010 amending Regulation (EC) No 718/2007 Council Regulation (EC, EURATOM) No 1605/2002 Framework Agreement Financing Agreement Sectoral Agreement MIFF Multi-Annual Indicative Financial Framework MIPD Multi-Annual Indicative Planning Document Chapter 11: Agriculture and Rural Development

5. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union NATIONAL LEGAL FRAMEWORK Chapter 11: Agriculture and Rural Development Law on General Administrative Procedure (Official Gazette of the Republic of ME, No 60/03; 32/11) Law on Agriculture and Rural Development (Official Gazette ME, No 56/09) Law on Ratification of the Framework Agreement (Official Gazette of ME, No 01/08) Rulebook on Internal Organization and Job Classification for the Ministry of Agriculture and Rural Development Regulation on Conditions, Method and the Pace of Implementation of Measures of Agricultural Policy (per year) – Agrobudget Chapter 11: Agriculture and Rural Development

6. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union GENERAL INSTITUTIONAL FRAMEWORK UNDER IPA(RD) Chapter 11: Agriculture and Rural Development Based on the IPA Implementing Regulation 718/2007 the following authorities and structures have been designated and established in Montenegro: The National IPA Co-ordinator (NIPAC) The Competent Accrediting Officer (CAO) The National Authorising Officer (NAO) The National Fund (NF) The Audit Authority (AA) Operating Structure (OS) High level working group (HLWG) was established in July 2011. Members are all IPA key actors (CAO, NAO, NIPAC, PAO, Strategic Coordinator, HoS of IPA II, III and IV, Head of MA and NF/CFCU representatives) Chapter 11: Agriculture and Rural Development

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union NAO/National fund Chapter 11: Agriculture and Rural Development NAO Deputy Minister for Treasury appointed to perform NAO function Weekly meetings with CAO Head of the National Fund NF acts as a NAO support Office Daily meetings and communication with NF staff Chapter 11: Agriculture and Rural Development

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Organizational chart NAO/National Fund Chapter 11: Agriculture and Rural Development Number of staff within NF: 5 + NAO Chapter 11: Agriculture and Rural Development

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Next steps: Twinning project Adjustment of the existing NF procedures to specific IPARD requirements Work on procedure compliance of all relevant bodies involved in decentralization of IPA V Developing capacities in respect of leading the process of IPARD decentralisation and clear understanding of IPARD accreditation criteria Further training on financial management, accreditation requirements, on-the-spot checks etc.) NAO/National Fund Chapter 11: Agriculture and Rural Development

10. Sector for Rural Development Management Authority Sector for Agriculture and Fisheries Sector for Forestry & Hunting Sector for Water Management Sector for Payments IPARD Agency Ministry of Agriculture and Rural Development Division for Economic Analysis Division for Agriculture Inspection Division for Databases Division for Legal Affairs and Misdemeanors Cabinet of the Minister Division for Fisheries Inspection General Affairs Service Office for IT Internal Audit Division IPARD OPERATING STRUCTURE ORGANIZATIONAL CHART - MARD OPERATING STRUCTURE M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Chapter 11: Agriculture and Rural Development

11. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union OPERATING STRUCTURE Chapter 11: Agriculture and Rural Development Rulebook on the internal Organization and Systematization of the Ministry of Agriculture and Rural Development, adopted on 17th of March 2011. Decision of the Government of Montenegro: - Sector for Rural Development - Sector for Payments The Conclusion of the Government of Montenegro on designating Sector for Rural Development as Managing Authority and Sector for Payment as IPARD Agency - 27.10.2011 No 03-7161/4 MARD established a high level working group with the tasks related to the implementation of the IPA component V - 17.01.2012 Chapter 11: Agriculture and Rural Development

12. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development The Operating structure has received valuable support from EU: Twinning project “Support to Establish an IPA Rural Development Programming and Implementation System in Montenegro” focused on enhancement of rural development of Montenegro, in line with the requirements of the European acquis. Selected consortium - Austria, France and Slovakia During the Twinning Project, the Operating Structure elaborated draft Manuals of procedures, draft application forms and checklists, Memorandum of Understanding between Managing Authority and IPARD Agency and Memorandum of Understanding between Managing Authority, IPARD Agency and National Fund OPERATING STRUCTURE Chapter 11: Agriculture and Rural Development

13. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Twinning project, “Strengthening Rural Development Programme under IPARD in Montenegro”. The project purpose is to strengthen the capacity of IPARD Operating Structure to implement Rural Development Programme under IPARD in an efficient and effective manner. Selected consortium - the Netherlands, Estonia and Lithuania. Project results: finalization of all documents necessary for achieving accreditation staff conversant with Manual of Procedures, and with sufficient practical experience, gained through implementation of National IPARD like schemes to properly manage IPARD Technical bodies and extension services expertise strengthened Awareness on IPARD Programme increased OPERATING STRUCTURE Chapter 11: Agriculture and Rural Development

14. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Department for Programming Head of the Department Department for Coordination & Public Relations (PR) Advisor Department for Monitoring & Evaluation Head of the Department Sector for Rural Development Assistant minister Advisor for Programming Advisor for Monitoring & Evaluation of Rural Development Measures Advisor for Monitoring & Evaluation of Rural Development Measures SECTOR FOR RURAL DEVELOPMENT Chapter 11: Agriculture and Rural Development

15. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Sector for Rural Development currently has 5 employees Two vacancy announcements were published during 2012, based on which 4 additional civil servants will be employed and all positions within this Sector will be filled SECTOR FOR RURAL DEVELOPMENT Chapter 11: Agriculture and Rural Development

16. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union SECTOR FOR RURAL DEVELOPMENT Chapter 11: Agriculture and Rural Development Main tasks: Programming Monitoring Evaluation Reporting Coordination and Publicity Chapter 11: Agriculture and Rural Development

17. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Document necessary for preparation of IPARD Programme: Council Regulation (EC) No 1085/2007 – IPA Regulation Commission Regulation (EC) No 718/2007 Commission Regulation (EU) No 80/2010 amending Regulation (EC) No 718/2007 Sectoral Agreement MIFF Multi-annual Indicative Financial Framework MIPD Multi-annual Indicative Planning Document Law on Agriculture and Rural Development Food Production and Rural Development Strategy, adopted 2006 National Programme of Food Production and Rural Development, adopted 2008 Sectoral analyses SECTOR FOR RURAL DEVELOPMENT Chapter 11: Agriculture and Rural Development

18. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 11: Agriculture and Rural Development Preparation and submition of IPARD Programme: Elaboration of outline IPARD Programme and selected measures Discussion and comments with/from DG AGRI G4 Ex-ante evaluation of IPARD Programme (Feb. 2012) Submitted IPARD Programme-Final Proposal (Apr. 2012) Comments from DG AGRI (September 2012) Submitted IPARD Programme to DG AGRI (Novem. 2012) IPARD Monitoring Committee members – identified, establishing after adoption of IPARD Programme SECTOR FOR RURAL DEVELOPMENT Chapter 11: Agriculture and Rural Development

19. M O N T E N E G R O Negotiating Team for the Accession of the Montenegro to the European Union Chapter 11: Agriculture and Rural Development Head of department for Conracting Head of department for Payment execution and Accounting Head of department for Payment authorization Sector for Payments Assistant minister Senior Adviser Agriculture support payment execution Senior Adviser Agriculture support payment execution Senior Advisor Rural development support Payment execution Senior accountant Senior Advisor for Agriculture paymentsSenior Advisor for monitoring and reporting Senior advisor for contracting Accountant Advisor for authorization of Rural development Support Advisor for authorization of Rural development Support Advisor for authorization of Agriculture Support and Social Assistance Advisor for authorization of Agriculture Support and Social Assistance IT Sector for database Internal audit Chapter 11: Agriculture and Rural Development SECTOR FOR PAYMENTS

20. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union 2012: 25 employees 2013: 50 employees 2014: 60 employees Recruitments plan Currently there are15 civil servants and 10 trainees working in the Sector for Payments The Ministry of Agriculture and Rural Development published 2 vacancy announcements in 2012 for employment of civil servants based on which 3 additional civil servants will be employed within the Sector for Payments. Further employment is planned in 2013, after the establishment of the IPARD Paying Agency, which will implement the IPARD Programme measures Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development SECTOR FOR PAYMENTS

21. M O N T E N E G R O Negotiating Team for the Accession of the Montenegro to the European Union Chapter 11: Agriculture and Rural Development Sector for aplications and contracting Sector for IT Sector for inspection Paying Agency Director Sector for payment authorization Sector for accounting and budget Sector for payment execution Sector for general afairs Office for Internal audit Segregation of duties 4-eyes principle Substitution plan Supervision arrangements Chapter 11: Agriculture and Rural Development Recuirements plan SECTOR FOR PAYMENTS

22. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Publicity Authorization & control of commitments Selection Authorization & control of payments Execution of payments Accounting for commitments and payments Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development SECTOR FOR PAYMENTS

23. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union - Chapter 11: Agriculture and rural development World Bank project Montenegro Institutional Development and Agriculture Strengthening - MIDAS project The aim of the project is to provide grant support for investments in registered farms - introduction and implementation of rural development measures, increasing competitiveness in the market and the implementation and enforcement of European food safety standards Support is implementing by World Bank’s credits and grants MIDAS grant scheme implementing Operating Structure Sector for Rural Development - procedures: Programming (programming of measures and preparing Operating manuals), monitoring, evaluation and reporting (after the closure of each open call), coordination and publicity Sector for payments - procedures related to implementing of measures (open call, evaluation applications, administrative checks of application and payment request, on- the-spot checks, reporting and payment check,etc. ) Chapter 11: Agriculture and Rural Development MIDAS PROJECT

24. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union - Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development Category (IBRD Loan 7716 ME) Amount of the Loan Allocated (in €) Implemented (in €) Implemented (in %) Contracted € Left (not contracted) € Rural Development Grants under Part A.1 of the Project (IBRD) 4,787,200.001,636,144.6034.17%3,472,267.75 1,314,932.25 Rural Development Grants under Part A.1 of the Project (GEF) 3,010,00067,781.002.25% 67,781.002,942,219.00 Total 7,797,200.001,703,925.6021.85%3,540,048.754,257,151.25 One of the components: Strengthening MARD’s rural development program Support to introduction and implementation of rural development measures that are in line with the IPARD program, previously defined within the National Program of food production and rural development MIDAS PROJECT – IPARD like measures

25. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union - First public call for grants – Investment in agriculture holdings (measure 101 - like) Call duration: 15.04.2011 – 13.07.2011 Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development MIDAS PROJECT – IPARD like measures

26. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union - First public call for grants – Investment in agriculture holdings (measure 101 - like) Payment Claims Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development MIDAS PROJECT – IPARD like measures

27. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union -  Second and Third public call for grants: axis II EU rural development Measure 1: Agri-environmental investment on mountain agricultural holdings Measure 2: Manure management and prevention of erosion  Continuous improvement of procedures through MIDAS grant calls Call duration II call: 15.07.2012–15.09.2012; Call duration III call: 15.10.2012– 15.01.2013 Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development MIDAS PROJECT – IPARD like measures

28. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union - Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development MIDAS PROJECT – IPARD like measures

29. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Training plan Twinning I Twinning II – fine tuning for IPARD Midas project Short term experts Education of employees Close cooperation with Paying Agencies from Region Chapter 11: Agriculture and rural development Chapter 11: Agriculture and Rural Development SECTOR FOR PAYMENTS

30. Thank you for your attention! QUESTIONS