Liliana Pavlova, Deputy Minister of Regional Development: The National Regional Development Strategy is being drawn up

nikoleta.cvetkova @ klassa.bg


- Mrs. Pavlova, has the preparatory work on the setting up of a National Regional Development Agency been launched and why is the introduction of this structure necessary?
- At present, several aspects are being hammered out. Actually, the status of the planned Regional Development Agency is being drawn up. The Minister of EU Funds Management, Tomislav Donchev and his team are already working on the idea. This Agency will integrate the management of 7 EU operational programmes which are now implemented by various ministries. This, of course, will happen in the next programming period. The Ministry of Regional Development and Public Works (MRDPW) jointly with the Council of Ministers have committed themselves to make the analysis of the administrative-territorial entity by the end of May. The twenty-eight district governors will be integrated into 6 administrative units in a way similar to the separately outlined planning regions of Bulgaria. However, currently, a model for the effectiveness and the scheme of management of these statistical entities is also under consideration in order to make sure that these operate properly. It is yet to be decided whether they will be administered by a governor or municipal governors. This measure will reduce the administrative and bureaucratic procedures for application under the operational programmes and will increase the absorption of EU funds.

- How would you comment on allegations that, according to the European Commission, the slow utilisation of EU funding is due to the insufficient training of the administration. What measures should be applied so that the level of employees' qualifications is raised?
- Over BGN 2 mln were provided for all levels of employees in municipalities and for mayors, as well as for the lower levels of the administration for the further training of the administration under Operational Programme Regional Development (OPRD). The lecture courses will concern the solving of definite cases, thus being instrumental for the accumulation of practical experience for the management of the operational programmes. Effectiveness will be achieved not only due to the training but also from the attainment of control on the administration's work. Currently, these monitoring systems are very cumbersome because there is a fear of assuming personal responsibility, which further delays the absorption of EU funds. Therefore, we will focus our efforts on increasing effectiveness. The projected funds will be allocated for the implementation of 105 trainings of a total of 1,500 employees. So far, overall 10 - 15 lecture courses have been held. By the summer, several courses will be conducted and after the elections the rest will be carried out with the newly-formed teams. Next year will be very significant for the preparation of projects for the new programming period. Therefore, it is very important for us to have trained personnel.

- What was the level of interest expressed in the published invitation of the JESSICA Holding Fund (Joint European Support for Sustainable Investment in City Areas)? And what will its financial aid schemes refer to?
- Currently, there is serious interest expressed in the programme but May 23 is the final deadline for municipalities to declare their interest. Each of them must submit a business plan for sustainable urban development certifying the way of utilising the financial resources provided. The plans must be long-term and generating revenues. The setting up of two funds is envisaged. The first will operate for Sofia, while the second one will function for the 6 major Bulgarian cities (Sofia, Varna, Burgas, Stara Zagora, Pleven and Ruse). Afterwards, fund managers will be selected. The application projects could refer to the construction of multi-storey car parks, aqua parks and ice rinks. That is, the projects will contribute to the improvement of the urban environment and will generate revenue as a result of their implementation. By the end of June, the contractors for the establishment and management of both funds should be designated. The MRDPW can allocate a total of €33 mln, 40% of which will be intended for the setting up of Sofia's Fund and 60 percent - for the establishment of the Fund of the 6 cities. The tender requirements for the candidates stipulate that they should participate with the same amount of financial resources. There will be no lower or upper price limit of the projects and no requirement will be set for the actual deadline for the return on investment. The only thing that we want is the investment process to start quickly. If the amount of funds projected by us proves to be insufficient, additional resources could be provided in the next programming period. At the moment, the proposals are being analysed by Deloitte.

- What are the resources of the supporting Operational Programme Black Sea and what projects can be funded under it?
- The total budget of the Black Sea programme is €24 mln, to be divided among several priority axes. The peculiarity of this programme is that the EU funding of projects is 90%. The national participation of Bulgarian partners is 10% and the money is allocated from the budget after the Ministry of Regional Development and Public Works signs the contracts. Proposals involving at least two international partners may receive funding. In order to apply this measure, however, they must be from the Black Sea region. A considerable part of the projects are aimed at implementing the so-called soft measures, including historical and cultural cooperation, educational initiatives and exchange of students, analyses, protection and preservation of the environment and other economic and social measures, assisting the joint development of the countries bordering the Black Sea. A total of 19 projects, worth €8 mln, have been approved under the first invitation, 17 of these with Bulgarian participation and in seven of them the Bulgarian partner has a leading role. The projects will receive almost €1.8 mln from the EU. A second invitation under the programme will be opened as well and the financial resources earmarked for it amount to some €9 mln. Countries may apply with projects worth from €100,000 to €700,000.

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