1. Panel II: Adequate capacity for absorbing financial assistance
Effective Support for Enlargement
Panel II:
Adequate capacity for absorbing financial assistance
-setting the decentralised management in the candidate countries-
Conference "Effective Support for Enlargement", Brussels

2. Absorption capacity (main elements) -Macedonian case-
Macroeconomic absorption capacity (as % of GDP)
Financial absorption capacity (ability to co-finance)
Administrative absorption capacity (demand side-to generate projects, supply side-to manage the funds)
Not a constraint in the pre-accession period
The intention to increase the co-financing rate beyond the thresholds
Supply and demand of mature and ready-to-go projects, to cope with reporting requirements, to supervise implementation, and to avoid irregularities,
Structures,
Human resources,
Tools
Conference "Effective Support for Enlargement", Brussels

3. Conference "Effective Support for Enlargement", Brussels 19.10.2009
Overall status
Programming
Implementation
Monitoring
Evaluation
Relevant experience accumulated
Conferral of management ongoing
Shadow phase introduced
Country Interim evaluation Programme introduced
Conference "Effective Support for Enlargement", Brussels

4. Conference "Effective Support for Enlargement", Brussels 19.10.2009
Implementation
Conference "Effective Support for Enlargement", Brussels

5. Conference "Effective Support for Enlargement", Brussels 19.10.2009

6. Conference "Effective Support for Enlargement", Brussels 19.10.2009
Structures
Operating structures established per component in line with WLA and act of Systematizations and rule book of working post adopted accordingly:
IPA component 1 – 166 employees
IPA component 2 – 28 employees
IPA component 3 – 46 employees
IPA component 4 – 40 employees
IPA component 5 – 120 employees
Conference "Effective Support for Enlargement", Brussels

7. Conference "Effective Support for Enlargement", Brussels 19.10.2009
Capacity Building
Conducted trainings thus far:
monitoring and evaluation, procurement, grant schemes, financial management, risk management, irregularities, work load analysis, techniques of writing PFs and ToR, and soft skills for less than 2000 civil servants
Training of Trainers
Conference "Effective Support for Enlargement", Brussels

8. Conference "Effective Support for Enlargement", Brussels 19.10.2009
Procedures
Written procedures prepared:
Programming manuals, NAO, CFCD and NF Internal procedure Manuals, SPO manual of procedures, Monitoring and evaluation manuals, Communication guide, Decrees, Project Implementation manual, etc )
Conference "Effective Support for Enlargement", Brussels

9. Component III Regional Development -status and main challenges-
2 major projects prepared, implementation to follow
24 July 2009, FA entered into force on 18 September 2009,
Ongoing
First installment transferred, procurement process ongoing
Regular consultation process is ensured
Programming
Conferral of Management
OP revision
Implementation
Donors, IFIs and CSOs consultation
Conference "Effective Support for Enlargement", Brussels

10. Component IV Human Resources Development -status and main challenges-
Programming
Conferral of Management
OP revision
Implementation
Donors, CSOs, social partners consultations
Envisaged projects in three priority axes
16 October 2009 Commission Decision, FA signing in procedure
Expected at the beginning of 2010 with launching of first calls for applications
Regular consultation process established
Conference "Effective Support for Enlargement", Brussels
Conference "Effective Support for Enlargement", Brussels

11. Component V Rural Development -status and main challenges-
Unique structure
Programming
Conferral of Management
IPARD campaign
Implementation
MA and IPARD established
IPARD Programme approved
Accreditation package submitted, CoM expected in November 2009
Launching - end of October 2009
Beginning of 2010
Conference "Effective Support for Enlargement", Brussels

12. Conference "Effective Support for Enlargement", Brussels 19.10.2009
Component I Transition Assistance and Institution Building – status and main challenges-
Programming
Conferral of Management
Implementation
Annual Programmes up to 2009, programming 2010 ongoing
Expected first quarter 2010
Lessons learned applied
Co-financing and ownership increased
CPs, CAs and MBs coordination mechanism established
ToRs prepared during programming process
Revision of threshold of MIPD per priority axes
Conference "Effective Support for Enlargement", Brussels

13. COMPONENT II Cross Border Cooperation – status and main challenges-
Programming
Implementation
Co-financing
Partnerships
Info campaign
4 CBC OPs approved, CBC OP with northern border to be initiated
Centralized management ongoing, DIS structure to be established
Fiscal Decentralisation versus Co-financing arrangements
Promotion of sustainable partnerships
Info days and partner matching events organised
Conference "Effective Support for Enlargement", Brussels

14. Monitoring and Evaluation Schemes
Procedures established
Transitional phase ongoing, Operating structures to take over the responsibility to perform monitoring activities
Clear segregation of responsibilities between NIPAC office and CFCD
Capacity building for Interim evaluation
Monitoring
Evaluation
Conference "Effective Support for Enlargement", Brussels

15. Wider environmental framework
PIFC
Public Procurement
Internal Budgetary procedures
Internal audit units established in 49 public sector entities on central level and 39 on local level. (121 internal auditors employed)
Strategy for development of the system for public procurement, aimed for strengthening of capacity and system of public procurement is ongoing
Co-financing obligation incorporated in the budgetary procedure.
Further harmonization of relevant acquis
Conference "Effective Support for Enlargement", Brussels

16. IMMEDIATE CHALLENGES AHEAD –
To finalise the conferral of management processes in the 1 quarter of 2010;
Retention policy of civil servants;
Capacity Building and increase of number of employees as per WLA;
Increase capacities of the potential beneficiaries outside administration;
OPs revisions
Increase of number of participation in the CPs and CAs
Conference "Effective Support for Enlargement", Brussels

17. Mid-term and long term steps
Maintaining of the conferral of management powers
Minimize the staff turnover
Institution building of new IA’s
Absorption capacity (building) for Structural and Cohesion Funds… from 2014? or earlier?
Conference "Effective Support for Enlargement", Brussels