1. Value Engineering in Hungary Orlando, June 11 2012 Zsuzsanna Kondor Director General Coordination Managing Authority National Development Agency, HUNGARY

2. The European Union and its Cohesion Policy Value engineering in Hungary The role of the National Development Agency in financing development programmes Value engineering case studies Challenges: preparing for 2014+ Cohesion Policy Content of the presentation

3. The European Union and its Cohesion Policy

4. <50 50 - 75 75 - 90 90 - 100 100 - 125  125 Differences in development in the EU-27 GDP per head as a % of the community average

5. Disparities across the European Union HiLoRatio GDP per cap (% EU27 average) Luxembourg 251% Bulgaria 33% 7.6* PopulationGermany 82.5 million Malta 404,000204 *In US, this difference is only 2.5 and Japan 2

6. How much does it cost? One third of the EU budget 2007-2013 €347 billion over 7 years* *1 EUR = 1,31 USD in January 2007

7. What does the EU citizen get for this? The three funds target: ERDF (€201 billion): regional development, economic decline in industrial or rural areas, competitiveness and co-operation ESF (€76 billion): employment, social inclusion and tackling discrimination Cohesion Fund (€70 billion): environment and transport ……with overarching aim of “boosting growth and employment”

8. Research/Innovation Environment Transport Information society Social infrastructure Energy Tourism Culture Institutional capacity Human capital Employment Adaptability of workers and firms Social inclusion Capacity building Technical assistance What do we spend the money on? European Regional Development Fund and Cohesion Fund (€271 billion) European Social Fund (€76 billion)

9. Who gets what? Convergence 81.9% (regions lagging behind the most) Competitiveness 15.7% Territorial co-operation 2.4% Total budget €347bn, which will unlock up to €700bn A method based on what works: Programming, Partnership and Decentralised Management

10. Index EU 25 = 100 Source: Eurostat Geographical Eligibility for Structural Funds Support 2007-2013 Objective 'Regional Competitiveness and Employment' Phasing-in regions, "naturally" above 75% Convergence objective statistically affected regions Objective 'Regional Competitiveness and Employment' Convergence objective (Regions < 75% in EU 25)

11. Value engineering in Hungary

12. Known of:

13. 20 CVS 19 PVM over 1000 AVS 11 Universities 20-30 VM projects/year SHVA 70 members

14. 1949 L. D. Miles: VE

15. 1 94 91968 L. D. Miles: VE VE in Hungary

16. 194919681991 L. D. Miles: VE VE in Hungary Society of Hungarian Value Analysts

17. 1949196819911996 L. D. Miles: VE VE in Hungary Society of Hungarian Value Analysts VE in Hungarian Public Procurement Act “The tender-owner might oblige the tenderer to utilize Value Engineering…” Hungarian Public Procurement Act, 2003. CXXIX. 53. § (4)

18. 19491968199119971996 L. D. Miles: VE VE in Hungary Society of Hungarian Value Analysts VE in Hungarian Public Procurement Act VE in Hungarian Highway Design Act Prime Ministers Office – Preparation of legislation

19. PUBLIC SECTORPRIVATE SECTOR NON-PROFIT SECTOR National Bank of Hungary Nuclear Power Plant Ministry of Social Affairs Transport Agencies National Development Agency Hospitals Telecommunication Construction Banks Pharmaceutical Many others Autism Mentally Handicapped Blind People Hearing Impairment

20. The role of the National Development Agency in financing development programmes

21. Distributing EU funds…

22. NSRF operational programmes (2007-2013)

23. coordination of implementing Structural and Cohesion Funds in Hungary USD billion 32,75 for the period 2007-2013 15 operational programmes - economic, social, public administration, regional, European territorial cooperation development programmes etc. 52,000 projects approved since 2004 National Development Agency

24. Value engineering case studies

25. National Strategy of Supporting Autistic People, 2008 Implementation rules for EU funds, 2005 Data and documents handling, 2009 Public procurement control system, 2010 Comperative assessment of EU and national level regulations, 2012 Successful projects

26. Focus on supporting the autistic children BEFOREAFTER Project Owner: Ministry of Social and Labor Affairs Project Subject: Institute Development Conception 2008-2013 Focus both on suporting the autistic children and adults

27. Focus on individual, institutional interests BEFOREAFTER Project Owner: National Development Agency Project Subject: Revision of Implementation Rules for EU funded projects Focus on programme objectives and common interests

28. Focus on various sources of information BEFOREAFTER Project Owner: National Development Agency Project Subject: Purchase of Sophisticated IT tool No change in focus!!!

29. Focus on large projects and established, institutional practices BEFOREAFTER Project Owner: National Development Agency Project Subject: Redesign of Public Procurement Control System (reduce risks) Focus on risky public procurements and unified approach

30. Focus on BEFOREAFTER Project Owner: National Development Agency Project Subject: Reduce administrative burden, restrictions and speed up absorption of funds Focus on

31. Reinforces institutional knowledge Enhances intraorganisational cooperation and team work Top and middle management level support is a must Implementation of recommendations is also a credibility issue Changes the way we think Experience

32. Challenges: preparing for 2014+ Cohesion Policy

33. Current context Crisis, austerity measures in many Member States, less monies to be better spent Use of public funds, accountability, error rate to be reduced Need for increased effectiveness Challenges: preparing for 2014+ Cohesion Policy

34. The role of the EU 2020 strategy Principles of the reformed Cohesion Policy Thematic concentration Result orientation (negative and positive sanctions) Integrated approach, strenghtened partnership

35. Thank you for your attention! Any questions?