1. Transition from ISPA to Cohesion Fund
21/04/2019
Transition from ISPA to Cohesion Fund
Annual Meeting of ISPA Partners 2003:
From ISPA to Cohesion & Structural Funds
Colin Walker
European Commission DG Regional Policy

2. ISPA to Cohesion Fund ISPA based closely on the Cohesion Fund
21/04/2019
ISPA to Cohesion Fund
ISPA based closely on the Cohesion Fund
To help candidate countries (CEECs) prepare for accession
By financing major transport and environment infrastructure needs
Introduction to procedures of Cohesion Fund (& EU
Structural Actions more generally)
Transition ISPA to CF relatively straightforward

3. The Cohesion Fund: Origin and Objectives
21/04/2019
The Cohesion Fund: Origin and Objectives
Introduced by the Treaty on European Union
To promote economic and social cohesion (reduce disparities in economic development)
By helping to finance major transport and environment infrastructure needs
Linked to EMU and control of budget deficits
Cohesion Fund accounts for 35% of allocations

4. ISPA to Cohesion Fund Common Features:
21/04/2019
ISPA to Cohesion Fund
Common Features:
Project-based approach (not programmes)
High rates of assistance
Focus on transport and environment
Whole territory of member state
Indicative allocations by country (ranges)
Project application, appraisal & monitoring procedures

5. ISPA to Cohesion Fund Points of difference: Eligibility of countries
21/04/2019
ISPA to Cohesion Fund
Points of difference:
Eligibility of countries
Conditionality (convergence programmes)
Scale (overall & by project)
Decision procedures
Implementation procedures
Expenditure eligibility (timing & type)
Other (commitments & payments)

6. ISPA to Cohesion Fund (Art. 2.4) (Art. 6)
21/04/2019
ISPA to Cohesion Fund
Eligibility & conditionality:
Cohesion Fund ISPA
MS with GNP under 90% CEEC candidate
Convergence programme
(Art. 2.4)
Conditional assistance
(Art. 6)
Mid-term review

7. ISPA to Cohesion Fund Scale (overall allocations): Cohesion Fund ISPA
21/04/2019
ISPA to Cohesion Fund
Scale (overall allocations):
Cohesion Fund ISPA
€ 2.8 billion p.a € 1.14 billion p.a.
€ 38 per capita p.a. € 11 per capita p.a.
E.g. Poland: (ISPA) € million
2004 (CF) € 1415 million

8. ISPA to Cohesion Fund Assistance rates & min. project size:
21/04/2019
ISPA to Cohesion Fund
Assistance rates & min. project size:
Cohesion Fund ISPA
Grant rate % 75% (85% as exception)
subject to revenue-generation & financing from other sources
€ 10 million min. size € 5 million min. size
except in “duly justified cases”

9. ISPA to Cohesion Fund Expenditure eligibility: Cohesion Fund ISPA
21/04/2019
ISPA to Cohesion Fund
Expenditure eligibility:
Cohesion Fund ISPA
On receipt of (complete) Date of signature of FM
application
Land purchase eligible
VAT in limited cases
Commission Regulation 16/2003

10. Information meeting Favourable opinion of management committee
21/04/2019
ISPA to Cohesion Fund
Decision procedures:
Cohesion Fund ISPA
Commission decision Commission decision &
financing memorandum
Information meeting Favourable opinion of
management committee

11. ISPA to Cohesion Fund Implementation procedures: Cohesion Fund ISPA
21/04/2019
ISPA to Cohesion Fund
Implementation procedures:
Cohesion Fund ISPA
Fully decentralized to MS Part decentralized
National law based on External aid rules:
EC procurement directives
Ex-post control by Commission * EU+ preference
* Ex-ante approval

12. Transition from ISPA to Cohesion Fund
21/04/2019
Transition from ISPA to Cohesion Fund
Accession of 10 countries by May 2004 (of which 8 are ISPA beneficiaries)
ISPA will cease for these countries, but they become eligible for CF and SFs
2003 will be last year for ISPA in acceding countries
Ongoing ISPA projects to be completed under CF rules

13. Transition from ISPA to Cohesion Fund
21/04/2019
Transition from ISPA to Cohesion Fund
Problem: Continuation of projects after accession
ISPA projects
Commitments carried out over several years based on financial plan
in many cases commitments are distributed over the period

14. Transition from ISPA to Cohesion Fund
21/04/2019
Transition from ISPA to Cohesion Fund
The Legal and Budgetary contraints:
Article 15 of the ISPA regulation :
« On accession to the EU, a country shall lose its entitlement to support under this Regulation »
no new ISPA commitments possible after accession of a country ( i.e. 2004)
EU Budget financial perspectives :
pre-accession grants for candidate countries
structural actions (SF + CF) for EU Member States
= a clear break between « before accession » // « after accession »

15. Transition from ISPA to Cohesion Fund
21/04/2019
The solution:
As the ISPA Regulation is an adapted copy of the Cohesion Fund Regulation…
… on accession of a country:
All non-completed ISPA measures shall be considered as Cohesion Fund projects
Any subsequent annual commitment = under the Cohesion Fund
The provisions governing these measures = those of the Cohesion Fund [unless otherwise stated]

16. Transition from ISPA to Cohesion Fund
21/04/2019
Transition from ISPA to Cohesion Fund
Some specific provisions:
Public procurement rules
Assistance rates
Expenditure eligibility
date
items of expenditure
Payments

17. Transition from ISPA to Cohesion Fund
21/04/2019
Transition from ISPA to Cohesion Fund
Conclusions:
Close similarity between CF and ISPA
Differences outweighed by common features
ISPA therefore provides good introduction to CF
If ISPA a success…... then CF will also be a success!
Transition arrangements relatively straightforward
CF part of wider “family” of Structural Actions