1. REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME 13 th SECTORAL MONITORING COMMITTEE MEETING Ministry of Science, Industry and Technology 28 November 2013 / Adıyaman

2. AGENDA 1. Introduction and Adoption of the Agenda a)Introductory Remarks (HOS, EC) b)Approval of the Minutes of the previous SMC and the Agenda of the Meeting (HOS, EC) 09.00 - 09.15 2. Information on Audit Related Issues (Audit Authority) 09.15 - 09.30 3. Information on Programming a)1 st project package (OS) b)2 nd project package (OS) c)3 rd project package (OS, EIF) d)4 th project package and individual projects (OS) 09.30 - 10.00 4. Information on Procurement and Implementation a)Tendering and contracting (OS) b) Implementation (OS) c) Absorption (n+3) and disbursement forecasts (OS) 10.00 - 10.45 5. Information on Technical Assistance and Communication Activities a)Technical assistance activities (OS) b)Communication activities (OS) 10.45 - 11.15 6. Information on Monitoring Report and Monitoring Sheets (OS) 11.15 - 11.25 7. Information on IPA II Programming (EC, NIPAC) 11.25 - 11.45 8. AOB and Indicative Date of the Next SMC Meeting 11.45 - 12.00 9. Lunch 12.00 - 13.00

3. 1 st project package 2 nd project package 3 rd project package 4 th project package Individual projects Overall Assessment PROGRAMMING

4. TOTAL BUDGET: 113.091.629 € Establishment of 3 Business Incubators in Selected Regions and Development of a Network among Incubators in Turkey, KOSGEB Establishment of Innovation Centre for Food- INNOFOOD CENTER, TUBITAK Establishment of 3 Technology Development Zones, MoSIT-DG for Science and Technology Winter Tourism Corridor in Erzurum, Erzincan and Kars, Ministry of Culture and Tourism Enlargement of the European Turkish Business Centres Network to Sivas, Antakya, Batman and Van, TOBB Ministry of Economy Empowering SMEs for networking and inter-regional cooperation, Ministry of Economy Technical Assistance + Publicity, MoSIT – RCP-CID TOTAL NUMBER of OPERATIONS: 11 APPROVED OPERATIONS: 10 1 st PROJECT PACKAGE

5. TÜBİTAK, TÜBİTAK, The Scientific and Technological Research Council of Turkey INNOFOOD - MAJOR PROJECT  First Submission of the Documents – 26.02.2010  Admissibility Letter – 23.04.2010  Comments from the EC – 11.10.2010  Second Submission of the Documents – 29.07.2011  Comments from the EC – 22.03.2012  Meeting with EC Representatives – 14.09.2012  Unofficial Submission of Revised Docs. – 22.10.2012  Unofficial Submission of Revised Docs. – 12.04.2013  Third Submission of the Documents – 24.09.2013 1 st PROJECT PACKAGE

6. Prioritized Projects by the call: 47 Current Number of Projects: 36 Approved Projects: 32 OIS in Preparation: 4 Total Budget of Approved Projects: € 217.653.267 2 nd PROJECT PACKAGE

7. 2 nd PROJECT PACKAGE – PLANNING (ind. 28 MEUR) Measure Name of the ProposalERAStatus Indicative Budget (€) 2.2 Activation of Dairy Products Cluster in TRA2 Region, and Establishment and Operationalisation of a Whey Processing Plant (WPP) in Kars Kars Governorship Submitted to EUD on 01/11/2013 9.988.405 1.1 Activation of Malatya Apricot Cluster and Strengthening Foundations and Infrastructure of the Cluster Malatya Governorship and Malatya Commodity Exchange Submitted to EUD on 21/11/2013 9.740.274 1.3 Establishment and Operationalisation of an Applied R&D and Service Centre, specialized on Food Industry, at Çankırı Karatekin University Çankırı Karatekin University OIS in preparation (estimated submission: 4 th Q of 2013 ) 3.797.442 1.4 Improvement of Winter Tourism Infrastructure in Yalnızçam, Ardahan Ardahan Special Provincial Administration OIS in preparation (estimated submission: 4 th Q of 2013 ) 4.500.000

8. 3 rd PROJECT PACKAGE 51.15 M.€ IPA Contribution 900 M. € Credit Volume for SMEs Under implementation 6 Steering Com. held. KGF Capacity Building phase II started Q1 2013 Capacity Building for banks kick-started Q3 2012 Capacity Building for DGIT / MoCT started Q4 2012 4900 SMEs supported, 390 MEUR credit provided Greater Anatolia Guarantee Facility - GAGF 16.3 M. € IPA Contribution Contribution Agreement - 31.08.2011 Official launch of the project – 19.01.2012 Publication of Call for Expression of Interest - 20.01.2012 7 eligible applications by deadline -20.03.2012 Abraaj Capital selected by the Investment Committee in July 2012 Legal negotiations with Abraaj Capital-concluded in September 2013 Official announcement of Fund Manager - 29/11/2013 G-43 Anatolian Venture Capital Fund 30 M.€ IPA Contribution Offical Submission to EC - 23.11.2012 Technology Transfer Accelerator (TTA) Fund

9. 4 th PROJECT PACKAGE Number of Projects: 11 Approved Projects: 7 OIS in Preparation: 4 Total Budget of Approved Projects: € 53.176.629

10. MeasureTitle of the Operation End Recipient of Assistance Status Indicative Budget (€) 1.3 Establishment of Nonwoven Research & Development Centre Silkroad Dev.Agency (İKA) Submitted to EUD on 11/11/2013 9.634.330 1.4 Kars City with its Own Historical Identity Serhat Dev.Agency (SERKA) OIS in preparation (estimated submission: 4 th Q of 2013 ) 9.500.000 1.1 Sea Food Processing and Storing Center North Anatolia Dev.Agency (KUZKA) OIS in preparation (estimated submission: 4 th Q of 2013 ) 9.510.664 4 th PACKAGE – PLANNING (IND. 28 MEUR)

11.  First Submission of the Documents – 29/08/2013  1st round of Comments from the EC – 09/09/2013  Reply to EC Comments – 03/10/2013  Admissibility Letter – 27/09/2013 4 th PROJECT PACKAGE SAMSUN LOGISTICS CENTER Major Project

12. MeasureTitle of the Operation End Recipient of Assistance LocationStatus Indicative Budget (€) 1.4 Sustainable Tourism Development in Kaçkar Mountains National Park Ministry of Forestry and Hydraulic Works Rize OIS in preparation (Estimated Submission: Q4 2013) 9.500.000 OPERATIONS SUBMITTED BY THE NATIONAL PUBLIC BODIES- PLANNING (IND. 9.5 MEUR)

13. APPROVED OPERATIONS FROM THE LAST SMC MEETING Name of ProposalLocationBudget (€)Approval DatePackage Establishment of Carpet Excellence Centre Gaziantep 8.907.658 28/08/2013 4 th Establishment of National Cluster Academy Ankara 7.655.059 20/11/2013 4 th Establishment and Operationalisation of a Lab Services Unit at the Hazelnut Research Station in Giresun Giresun 2.828.204 20/11/20132 nd Kommagene Nemrut Tourism Oriented Revival Project (KN-TOC) Adıyaman 6.896.831 20/11/2013 (via e-mail) 2 nd Sivas Industry Incubator Center Project (ISGEM) Sivas 7.190.305 21/11/2013 4 th

14. Total Number of Operations : 63 Total Number of approved operations: 52 Operations in preparation: 11 Total Budget of OP(EU+TR): 551.490.025 € Total Volume of Project Portfolio: ind. € 603 mil. Total Budget of Approved OISs: ind € 431 mil. (77% of OP Budget) OVERALL ASSESSMENT

15. (Total Budget: ind 603 MEUR) WHOLE OPERATION PORTFOLIO Number of Approved OIS52 Number of OIS in Preparation11 Total63

16. Priority 1: Improvement of Business Environment (Budget. ind 526 MEUR) PROGRESS BY PRIORITY AXES Number of Approved OIS41 Number of OIS in Preparation10 Total51

17. Priority 2: Strengthening of Enterprise Capacity and Foster Entrepreneurship (Budget: ind. 50 MEUR) PROGRESS BY PRIORITY AXES Number of Approved OIS9 Number of OIS in Preparation1 Total10

18. MEASURE BASED PROJECTS IN TARGET REGION 15 Growth Centers Provinces not covered: Artvin Iğdır Ağrı Şırnak Kilis Tunceli 1.1 1.31.4 2.1 2.2

19. Tendering and contracting Implementation Absorption (n+3) and disbursement forecasts PROCUREMENT and IMPLEMENTATION

20. TENDERING and CONTRACTING

21. Number of Contracts Signed/Planned to be Signed

22. REALISED and FORESEEN CONTRACTED BUDGET € 367million is foreseen to be contracted by the end of 2015. * Budget of Signed Contracts up to date ** Budget of Contracts expected to be signed in November-December 2013

23. FINALIZED CONTRACTS Totally 9 Contracts Type of Contracts WorksSupervision Technical Assistance / FW Supply Total (€) Number of Contracts 2 (taking over) 0259 Budget (€) 5.101.3490187.968865.4706.154.787

24. CONTRACTS UNDER IMPLEMENTATION Totally 24 contracts Type of Contracts WorksSupervision Technical assistance SupplyDirectGrantTotal Number of Contracts 6880224 Budget (euros) 23.111.9224.010.43524.387.405067.457.895 118.967.657

25. PROJECTS COMING TO IMPLEMENTATION Totally 45 project-152 components Type of Components WorksSupervision Technical Assistance Supply Total # of Components Budget (€) 2013363-1222,214,132 2014242315 77150,827,444 20157618255686,766,391 20161-33721,433,222 Total # of Components 35 3943152281,241,189 Budget (€)128,365,21115,079,39176,603,80561,192,782

26. YEARLY BUDGET ALLOCATION for RCOP (EU BUDGET) Calendar Year Allocated EU Budget DecommitmentRevised EU Funds after de-commitment Spending Year (n+3) 2007 41,900,0000 2008 43,500,0000 2009 54,800,00011,620,68543,179,315 2010 71,430,0000 41,900,000 2011 88,020,0000 43,500,000 2012 89,016,5980 43,179,315 2013 91,720,5880 71,430,000 2014 88,020,000 2015 89,016,598 2016 2017 91,720,588 TOTAL 480,387,18611,620,685468,766,501

27. GENERAL VIEW (EU + TR CONTRIBUTION) Total Number Total Budget (€) Number of Approved/Signed Total Budget of Approved/signed (€) % Project (OIS)63602.712.78752431.103.00571,52 Contract224602.712.78733125.122.44421,04 PaymentN/A551.000.000N/AN/A92.340.91016,75 Cut -off date:15 November 2013

28. PAYMENT CYCLE for 2013 PAYMENTS (EU Contribution) Paid (until November) To be paid (01.11 – 31.12.-2013) TOTAL 201027,259,577 201116,710,640 201220,226,435 2013 12.633.3666.258.597 18.891.963 Major Project TTA 25.500.0044.391.963 Minimum amount of expenditure needs to be declared to the EC by the end of 2013 is 71,4 m€. 27 m€ is expected to be decomitted in 2013. If the TTA is not approved by the end of the year, 52,5 m€ will be decomitted. (TTA Total Budget: 30 m€, EU Contribution:25,5 m€)

29. SUMMARIZED ABSORPTION (N+3)

30. DETAILED ABSORPTION (N+3)

31. TECHNICAL ASSISTANCE ACTIVITIES

32. Result 1: Achievements in Reporting Period TA to RCP-CID ToRs (TA II, Project Preparation Facility – PPF and Multi Annual Plan for Direct Expenditure) have been prepared. Shortlist for TA II has been submitted to the EUD. TA II Project planned to be start in May or June 2014. Last two Team Building events for RCP-CID staff delivered in November 2013 in Kızılcahamam. QAC Department – complete revision of the 19 Manual Chapters.

33. Result 1 - Achievements in Reporting Period (2) Assistance in the preparation of the 13 th Sectoral Committee Meeting (SMC) Trainings: 1 training on Internal control, delivered for RCP-CID staff, with 10 participants (11 to 14 November 2013) 1 training on Supply Contracts, delivered for RCP-CID Procurement Division staff with 10 participants (27 and 28 of November 2013)

34. Result 2 - Achievements in Reporting Period 1 additional training to ERAs on Procurement delivered during the period (12 to 15 November 2013), with a total of 35 participants. «Procurement Guidelines For End Recipients» to be distributed to the participants during education, were revised

35. Result 3: Achievements in Reporting Period 10 minor projects of the 4th Package have been / are being prepared, of which 7 have been approved by the EUD. One major project – Samsun Logistics Centre – has been prepared and has received some comments from the EUD. Support to Implementation Division proceeding, as foreseen, with 2 NKED.

36. Result 3: Achievements in Reporting Period Tender Dossier Preparation GETAM project has been prepared and delivered by the design team. Currently working on two additional tender dossiers; Yozgat İŞGEM and Trabzon/Erzurum Whey Powder expected to be delivered 10 th of December 2013. An additional two projects should be prepared by the 14 th of February 2014: Bingöl and Cluster Academy.

37. Result 4: Achievements in Reporting Period Regular monitoring and updating of the Procurement Plan and support / coaching on all procurement documents. Daily on the job coaching and support to FCD in financial operations & accounting (Tax exemption Regulation, VAT information forms, Withholding Tax issues, etc).

38. COMMUNICATION ACTIVITIES

39. Project Duration: 36 Months Started on 21 August 2013-Ending on August 2015 OVERALL OBJECTIVE To support RCOP goal of reducing regional socio-economic disparities To increasing the competitiveness of the Turkish economy and making it connverge with that of the EU. TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

40. PURPOSE To increase the public awareness and visibility of EU actions in Turkey in support of regional development and business development, through IPA and particularly RCOP. To allow for a wider participation of target groups in RCOP funding opportunities, particularly at the local level. To help generate a larger number of high-quality projects and allow a high rate of yearly disbursement of funds under RCOP. RESULTS Improve and design the public image of the RCOP and of the RCP-CID. To increase target groups information concerning RCOP actions, projects and financing opportunities and to ensure transparency and accessibility of information. To ensure sustainability of this programme outputs, particularly by training RCP-CID Publicity Division staff in publicity/visibility operations. To review the CAP with a view to upgrading and improving the plan. TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

41. KICK OFF The Project had its kick off meeting on 22 August 2013 INCEPTION PERIOD (22 August-22 October 2013) Fact finding missions were carried out with stakeholders and relevant projects as well as in depth meetings with the RCP-CID. One fact finding mission was carried out to Samsun with the attendance of TA and PD, to 3 major projects in Samsun –Samsun Logistics Project –Increasing the Competitiveness of Middle Black Sea Region –Samsun International Accredited Metal Metrology and Calibration Laboratory An online questionnaire is developed and distributed to a sampled group of current beneficiaries (20) Due to urgent need for an identity for the programme, the activity for developing an identity for the Operational Programme is brought forward to inception phase and preliminary activities started. TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

42. INCEPTION PERIOD A workshop was organised with extensive participation from RCP-CID departments on visual identity. A design brief was developed in line with this and a set of logo options together with options for slogan and stage name is produced and shared with the wider team. TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

43. FIRST INTERIM PERIOD ACTIVITIES Development of RCOP Visual Identity Production of promotional materials and Web site analysis and recommendations RCOP Communications Network Media Monitoring enacted PD training started Training Analysis for End recipients Analysis for Help Desk CAP Updated TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

44. OTHER COMMUNICATION ACTIVITIES Other Activities - New IPA staff is oriented - News and documents were updated on Web-site - Information requests were answered - Attendance to «3 rd Industry Council» held on November 20-22, 2013 in Ankara - Attendance to Closing Ceremony of «SME Networhing Project» held on November 22, 2013 in Ankara

45. MONITORING ACTIVITIES

46. IPA II PROGRAMMING

47. THANK YOU FOR YOUR ATTENTION Ministry of Science, Industry and Technology Regional Competitiveness Programme Coordination and Implementation Directorate e-mail: ipa@sanayi.gov.tr Web address: ipa.sanayi.gov.tr