NO FEAR ABOUT EU-FUNDS ABSORPTION, GOVERNMENT SAYS

Executive Agencies with the Ministries of Regional Development, Economy and Environment Do Not Fear Discontinuation of Funds under PHARE and ISPA.

Note: this has been reported in English by the Bulgaria In The EU Press-Centre, (a government-sponsored initiative).

January 10, 2007, (BTA). PHARE projects in Bulgaria are being implemented at an accelerating rate and there is no threat of the country losing financing under the programme, Regional Development and Public Works Deputy Minister Dimcho Mihalevski said. All projects under PHARE - 2003 and 2004 and the projects awarded last year are being implemented and municipalities of the Bulgaria-Romania transborder regions are currently submitting offers for small projects between the two countries under PHARE 2005, Mihalevski added.

BTA approached the Deputy Minister for comment in connection with a report by former European Affairs Minister Meglena Kuneva presented to the Government at the end of last year. According to the report, Bulgaria will stop receiving funds under PHARE and ISPA as of January 1, 2007 because the executive agencies of four ministries in charge of the programmes have not received accreditation for concluding contracts and holding tenders from the European Commission as they have not proved they have the capacity to manage the funds on their own.

The Ministry of Economy and Energy told BTA that the recommendations they had received from the Commission were only technical and that work had already started on their implementation.

Mihalevski said that Kuneva rather expressed apprehensions regarding the large projects under ISPA for which the competent Directorate of the Ministry of Environment and Waters had not received accreditation. Mihalevski said he expected the Directorate to receive accreditation by May and to use the time until then for adopting and evaluating proposals under the programme and preparing the tender dossiers under PHARE 2006.

Mihalevski recalled that over the past few years there had been a delay in negotiating and implementing projects which had to be made up for. Last year agreements were signed for more than 93 per cent of the PHARE funds under the financial memorandum for 2004. For the first time at the end of December more than 90 per cent of the tender procedures under PHARE 2005 were launched following approval by the Delegation of the European Commission in Bulgaria, Mihalevski said.

Allegations of a discontinuation of financing for concluding contracts under projects within the framework of PHARE are groundless, the Ministry of Economy and Energy told BTA.

At present the competent Directorate of the Ministry is managing 1,000 agreements under three grant aid schemes. Two new grant aid schemes financed by PHARE were launched in Bulgaria last year with the approval of the Delegation of the European Commission, sources of the Ministry said. The extended decentralization currently under preparation is aimed at applying the principles of good financial management and control and at providing a mechanism guaranteeing the most efficient spending of public development funds in conformity with the rules of the European Commission.

The final report of the auditors on extended decentralization is expected to be positive for all executive agencies.

The press office of the Ministry of Environment told BTA that by a letter dated December 14, 2006 the European Commission informed the Bulgarian Ministry of Environment and Waters of a follow-up audit mission by the Regional Policy General Directorate on February 12-16, 2007. The mission will assess the progress made by the Executive Agency of the Ministry in implementing the recommendations of the European Commission for receiving accreditation under extended decentralization on the ISPA programme, the press centre of the Ministry said.

Accreditation under extended decentralization covers only ISPA projects and that is why no discontinuation of payments under the Environment Operational Programme is expected.