1. 1 MINISTRY OF REGIONAL DEVELOPMENT AND PUBLIC WORKS MANAGING AUTHORITY FOR COHESION FUND (REGULATION 1164/94) MANAGEMENT OF PROJECTS, FINANCED BY COHESION FUND (1164/94) / ISPA PROGRAMME OF THE EUROPEAN UNION

2. 2 ISPA PROGRAMME - DEFINITION   Instrument for Structural Policies for Pre-accession for the 10 candidate- countries from Central and Eastern Europe for the period 2000 – 2006.   Along with PHARE and SAPARD programmes, ISPA is part of the mechanisms for financial assistance of the EU concerning the preparation of the candidate-countries for accession.

3. 3 TERITORIAL SCOPE

4. 4 ISPA PROGRAMME MAIN OBJECTIVES   Preparation of the candidate-countries for accession   To get the candidate-countries acquainted with the regional policy and procedures of the European Union regarding the Cohesion Fund and the other Structural Funds   To harmonize Bulgarian legislation in compliance with the EU Directives on environment protection   Development of the National transport infrastructure and access to the trans- European transport network

5. 5 ELIGIBLE PROJECTS UNDER ISPA PROGRAMME   Large infrastructure projects – over 5 million Euro   Environmental or Transport Projects (including phases or groups of projects)   Balance between the Environmental sector and the Transport sector

6. 6 FINANCIAL RESOURCES   For the 10 candidate-countries - 1 billion Euro annually   For Bulgaria – 8 - 12 % annually amounting to 80 - 120 million Euro for both sectors   For Bulgaria – total amount envisaged for each sector for the period of 7 years - 280 - 420 million Euro   Basis for determining the financial quota for each country: Population GDP per capita Total area Assessment of the countries with the greatest needs

7. 7 MAIN PARTICIPANTS IN THE MANAGEMENT PROCESS OF ISPA PROGRAMME   The European Commission   DG “Regional policy”,   DG “Enlargement”   DG “Environment”,   The EU Member-states   The EC Delegation – Sofia   Countries in the process of EU accession   National ISPA Coordinator   Paying Authority – National Fund Directorate in the Ministry of Finance   ISPA Implementing Agencies

8. 8 ISPA IN BULGARIA National ISPA Coordinator 4 Implementing Agencies Minister of Finance ISPA Monitoring Committee Joint Management Committee for PHARE, ISPA and SAPARD National Coordination Unit In the Ministry of Finance National Fund directorate Ministry of Finance Ministry of Transport Ministry of Environment and Water MRDPW Agency “Road Infrastructure” Individual Projects National Authorizing Officer European Commission DG Regional Policy

9. 9 ISPA IMPEMENTING AGENCIES   Assigned teams from the Bulgarian public administration, responsible for:   Technical execution of ISPA Projects,   Preparation and implementing of Public Procurement,   Awards of Contracts,   Making payments to Contractors.   “National Fund” Directorate – MF and each ISPA Implementing Agency sign Financial Agreement   Financial Agreement determines rules and procedures for the relationship between Bulgarian teams for management of funds under Cohesion fund (1164) / ISPA Programme.

10. 10 ISPA PROGRAMMING PROCESS   National Economic Development Plan until 2007   Preparation of ISPA National Strategies – for Environment and Transport sectors   Identification of the most priority projects for Republic of Bulgaria   Presentation and justification of the proposed projects in front of the European Commission – DG Regional Policy

11. 11 ISPA MANAGEMENT PROCESS MAIN STAGES   Application for ISPA Grant   Selection of Projects   ISPA Management Committee   Signing of Financing Memorandum   Procurement Procedures – Open International Tenders   Awards of Contracts – Works and Supervision   Project implementation   Monitoring and control   Ex-post assessment and evaluation of results

12. 12 PRIORITIES IN ENVIRONMENT SECTOR   Compliance with principles and objectives of EU Environment Policy   Decrease of the risk for human health   Limitation of the impact on unstable ecosystems   Permanent and rationale use of natural resources   Prevention measures for protection of the environment – in compliance with the “Polluter pays” principle   Identification and elimination of the contamination from the source

13. 13 ISPA MEASURE 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT FOR BOURGAS – EXAMPLE FOR SUCCESFULLY COMPLETED ISPA PROJECT

14. 14 SIGNING OF THE FINANCING MEMORANDUM JANUARY 2006 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS

15. 15 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS WASTE WATER TREATMENT PLANT – BOURGAS BEFORE THE START OF THE PROJECT

16. 16 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS SEWERAGE SYSTEM IN “POBEDA” QUARTER BEFORE THE START OF THE PROJECT SEWERAGE SYSTEM IN “POBEDA” QUARTER BEFORE THE START OF THE PROJECT

17. 17 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Signing of Works Contracts for Lot 1 and Lot 2 July 2007

18. 18 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Signing of Contracts for Construction Supervision for Lot 1 и lot 2 November 2007

19. 19 Construction of new Water Transmission Main from Lozovo reservoir to hotel Mirage ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS

20. 20 Construction of new Water Transmission Main from Lozovo reservoir to hotel Mirage July 2008 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS

21. 21 Official Opening Ceremony Construction of new Water Transmission Main from Lozovo reservoir to hotel Mirage - COMPLETED ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS 28 July 2008

22. 22 Groundbreaking Ceremony - December 2007 - ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Lot 1 and Lot 2 Rehabilitation and Extension of the Inner Water supply and Sewerage System in Bourgas

23. 23 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Lot 1 Pipe laying on “Tsar Simeon I” Street June 2009

24. 24 “Tsar Simeon I” Street - Completed October 2009 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS

25. 25 August 2009 Crossing of channel “Vaya – Black Sea” ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS November 2009 completed

26. 26 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Drinking water Reservoir “Izgrev” - COMPLETED Lot 1 January 2010

27. 27 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Lot 2 Lot 2 Rehabilitation and Extension of the Sewerage Network in Bourgas

28. 28 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Lot 2 – COMPLETED December 2009 Sewerage system “Pobeda” Quarter

29. 29 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Up-grading of the Waste Water Treatment Plant - Bourgas

30. 30 ISPA Measure 2005/BG/16/P/PE/003 INTEGRATED WATER PROJECT BOURGAS Up-grading of the Waste Water Treatment Plant – Bourgas – COMPLETED August 2009

31. 31 Integrated Water Project for the Town of Bourgas Physical and Financial execution by 31 December 2010 within the validity of the Financing Memorandum