1. How to manage effectively the financial implementation of the operational programmes Lazar Todorov Head of Department Management of EU Funds Directorate Ministry of Finance Ministry of Finance 09.10.2008, Open days, Brussels

2. Ministry of Finance 09.10.2008, Open days, Brussels CONTENTS Introduction of the LOTHAR system in Bulgaria; Main advantages and main problems so far; First forecasts and first results; Next steps

3. EU STRUCTURAL INSTRUMENTS ALLOCATIONS FOR BULGARIA 2007-2013 Objective/FundBudget () Share Convergence4.391 bln 64.1 % ERDF3.205 bln 72.9 % ESF1.186 bln 27.1 % Cohesion Fund2.283 bln 33.3 % Total6.674 bln 97.4 % European Territorial Cooperation ERDF 179 mln 2.6 % TOTAL 6.853 bln 100.0 % Ministry of Finance 09.10.2008, Open days, Brussels

4. Operational Programme Financial Allocation (mln ) OP Transport1 624 (ERDF + CF) OP Environment1 466 (ERDF + CF) OP Regional Development1 361 (ERDF) OP Human Resources Development1 032 (ESF) OP Competitiveness988 (ERDF) OP Administrative Capacity153 (ESF) OP Technical Assistance48 (ERDF) BACKGROUND INFORMATION Ministry of Finance 09.10.2008, Open days, Brussels

5. THE LOTHAR SYSTEM Necessity to: Develop management and monitoring systems and tools Comply with N+3/2 rule Set up a system for early warning

6. Ministry of Finance 09.10.2008, Open days, Brussels THE INTRODUCTION OF THE LOTHAR SYSTEM IN BULGARIA Working group was set up; The tables were jointly developed with the EC; The first forecasts were elaborated and frozen for 1 year following Council of Ministers Decision; The first updates have been prepared as the first quarter expired in the end of September 2008.

7. Ministry of Finance 09.10.2008, Open days, Brussels THE MAIN ADVANTAGES Clear picture of the financial implementation of each OP; Early warning system for identifying problems related to the absorption of the Funds (at the level of the OP/priority/operation/call; Opportunity to undertake corrective measures in time.

8. Ministry of Finance 09.10.2008, Open days, Brussels THE MAIN CHALLENGES The system is sophisticated; Forecasting for a longer period is difficult; The forecasts might be unrealistic; System is still evolving; Unwillingness of the MAs to use the system as a measurement tool.

9. Ministry of Finance 09.10.2008, Open days, Brussels FIRST FORECASTS, FIRST RESULTS Forecasts were frozen in June; First quarterly review was made in September.

10. OP Regional Development Forecast Ministry of Finance 09.10.2008, Open days, Brussels By the end of Q3 we should have 62 659 354 contracted projects for the OP Regional Development

11. OP Regional Development actual performance Ministry of Finance 09.10.2008, Open days, Brussels Total EU share of contracted projects is 105 773 035.

12. OP Regional Development actual performance

15. Ministry of Finance 09.10.2008, Open days, Brussels NEXT STEPS to achieve the baselines frozen for the first year; to embed the LOTHAR system in the Unified management information system

16. Ministry of Finance 09.10.2008, Open days, Brussels Thank you for your attention!