STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS December 2019 © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW CONTENTS Washington DC 20433 Telephone: 202-473-1000 EXECUTIVE SUMMARY VII Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclu- INTRODUCTION 1 sions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. BACKGROUND ON STRATEGIC REQUIREMENTS 7 The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. STRATEGIC REQUIREMENTS FOR SUD 2021-2027 ORGANIZATIONAL MODELS 13 Rights and Permissions Dedicated Priority Axis under a national OP 20 The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this Dedicated OP for multiple urban areas 20 work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Dedicated OP for a single urban area 21 Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. Integrated Territorial Investments 22 Regional Operational Programmes 23 CLLD 24 RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECT 25 Contextual risks 28 Implementation and collaboration risks 29 Strategic implementation risks 29 Operational implementation risks 34 CONCLUSION 39 Annex 1: Strategic requirements Romania has to meet for the 2021-2027 Programming Period 44 Annex 2: Cohesion Policy 2021-2027 Simplification Measures 65 Annex 3: SUD Responsibilities allocated to Urban Authorities, DISCLAIMER in EU Member Countries, for the 2014-2020 Programming Period 74 This report is a product of the International Bank for Reconstruction and Development/ the World Bank. The findings, interpretation, and conclusions expressed in this paper do not BIBLIOGRAPHY 79 necessarily reflect the views of the Executive Directors of the World Bank, the European Commission, or the Government of Romania. The World Bank does not guarantee the accuracy of the data included in this work. This report has been delivered in October 2019, under the Administrative Agreement No. 2019CE160AT020 (under TF073325) on the Romania Multi-municipality Financing Program, signed between the European Commission and the International Bank for Reconstruction and Development. It corresponds to Output 5 in the above-mentioned agreement. FIGURES ABBREVIATIONS AND ACRONYMS FIGURE 1. NUTS 2 regions classified by Cohesion Policy category and Lagging Region category 4 FIGURE 2. Size of urban population of SUD strategies in 2014-20 (n=347) 16 AA Administrative Agreement FIGURE 3. Territorial scope of SUD strategies 2014-20 period (n=356) 16 ANAP National Agency for Public Procurement FIGURE 4. Delegation of responsibilities across 300 SUD strategies in the EU (n=306) 19 ANR National Agency for the Roma CC Competition Council FIGURE 5. The types of risks involved in implementing inter-municipal projects within the SUD EU policy. Source: Own elaboration 27 CEF Connecting Europe Facility CEF Connecting Europe Facility CF Cohesion Fund CLLD Community-Led Local Development TABLES CPR Common Provision Regulation CPR Common Provision Regulation TABLE 1. Proposed allocations to Member States per Fund for 2021-2027 EBRD European Bank for Reconstruction and Development (in million euros, current prices) 10 EFSI European Fund for Strategic Investments ERDF European Regional Development Fund ESF European Social Fund ESF European Social Fund BOXES ESIF ETC European Structural and Investment Funds European Territorial Cooperation EU European Union BOX 1. Examples of content of SUD strategy documents 17 EUI European Urban Initiative BOX 2. Recommendations of how to minimize EU funds fragmentation risks 30 FUA Functional Urban Area BOX 3. Recommendations of how to minimize unfitted FUA delimitation risks 31 GDP Gross Domestic Product BOX 4. Recommendations on how to minimize thematic irrelevance risks 32 GIES General Inspectorate for Emergency Situations BOX 5. Recommendations on how to minimize unfitted territorial eligibility risks 32 IB Intermediate Body BOX 6. Recommendations on how to minimize administrative burden and delays risks 34 IDA Inter-communal Development Association BOX 7. Recommendations on how to minimize insufficient administrative capacity risks 36 ITI Integrated Territorial Investment BOX 8. Recommendations of how to minimize non-strategic inter-municipal projects risks 38 IUDP Integrated Urban Development Plans IUDS Integrated Urban Development Strategy JRC Joint Research Center LAG Local Action Group MA Managing Authority MC Ministry of Culture MCSI Ministry of Communication and Information Society ME Ministry of Energy MEF Ministry of European Funds MEN Ministry of Education MLSJ Ministry of Labor and Social Justice MRDPA Ministry of Regional Development and Public Administration MRI Ministry of Research and Innovation MS/MH Ministry of Health MT Ministry of Tourism NGO Non-Governmental Organization VI OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS OP Operational Programme PNCDI National Research & Development and Innovation Program PNDL National Local Development Program PPP Public Private Partnership PPS Purchasing Power Standards PUG Local Spatial Plan (Plan Urbanistic General) PUZ Zonal Urban Plan (Plan Urbanistic Zonal) RAS Reimbursable Advisory Services Agreement RDA Regional Development Agency ROP Regional Operational Programme SUD Sustainable Urban Development SUMP TAU Sustainable Urban Mobility Plan Territorial Administrative Unit EXECUTIVE SUMMARY TEN-T Trans-European Transport Network TO Thematic Objective TP Technical Project UA Urban Authority WB World Bank ACKNOWLEDGEMENTS This report has been delivered under the provisions of the Administrative Agreement on the Romania Multi-municipality Financing Program and prepared under the guidance and supervision of David N. Sislen (Practice Manager, Social, Urban, Rural and Resilience, Europe and Central Asia) and Tatiana Proskuryakova (Country Manager, Romania and Hungary). This report was developed by a team under the coordination of Paul Kriss (Lead Urban Specialist) and made up of Sylwia Borkowska-Waszak (Senior Urban Development Specialist), Arno van der Zwet (Senior Urban Development Specialist), Marcel Ionescu-Heroiu (Senior Urban Development Specialist), Marius Cristea (Senior Urban Development Specialist), Yondela Silimela (Senior Urban Specialist), Carli Bunding-Venter (Senior Urban Development Specialist), Ioana Ivanov (Senior Urban Development Specialist), Nic Țarălungă (Lead Urban Development Specialist), Sorina Racoviceanu (Lead Urban Specialist), Reinhold Stadler (Senior Urban Development Specialist), Daiana Ghintuială (Urban Development Specialist), Maria-Magdalena Manea (Operations Specialist), Adina Vințan (Senior Operations Specialist), Oana Franț (Senior Operations Specialist), and George Moldoveanu (Information Assistant). The team would like to express its gratitude for the excellent cooperation, guidance and feedback provided by the representatives of the European Commission, the representatives of the Romanian Ministry of Regional Development and Public Administration, the representatives of the Romanian Ministry of European Funds, and the multitude of local and regional actors who have helped with the development of this report. EXECUTIVE SUMMARY IX Strategic requirements are a way to ensure that EU funds generate more value added than just the investments they finance. For the 2021-2027 Programming Period, Romania will receive around 30 billion Euro through European Structural and Investment Funds (ESFI). This sizable budget will help address a number of development challenges throughout the country. To be able to access these funds, Romania, as all other EU Member States, has to meet a number of Strategic requirements. Generally, these strategic requirements cover most sectors covered by EU funds, and include the national level and local levels, and from the Managing Authorities and Intermediary Bodies to end beneficiaries. Moreover, in addition to the minimum strategic requirements imposed by the European Commission, there are also a set of additional strategic requirements imposed by national governments (linked usually to restrictions imposed by the national legislation and regulations, and to goals the National Government hopes to achieve). For the Sustainable Urban Development (SUD) approach, the following large strategic requirements are in place for the 2014-2020 Programming Period in Romania: • At least 5% of ERDF (European Regional Development Fund) has to go to SUD (Romania has allocated 11% of ERDF – one of the highest shares in the EU); • Beneficiaries (39 county capitals) had to prepare Integrated Urban Development Strategies (IUDS) and Sustainable Urban Mobility Plans (SUMP) to access pre-allocated SUD funding. • Beneficiaries also had to put in place Urban Authorities, with the minimum responsibility of selecting a list of priority projects for SUD funding from the IUDS. Other EU Member States have included other strategic requirements for SUD funding, such as: minimum size of the targeted urban area; need for inter-jurisdictional cooperation agreements; additional strategic documents (e.g. urban regeneration strategy); the establishment of multi- stakeholder alliances, etc. For the 2021-2027 Programming Period, the European Commission has taken a purposeful effort to simplify the Cohesion Policy and enable more flexibility for Member States and end- beneficiaries in defining core elements of Operating Programmes and interventions that will be supported as part of these. To this end a Simplification Handbook has been prepared, and the draft Cohesion Policy 2021-2027 outlines the minimum requirements for the SUD approach: X OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS EXECUTIVE SUMMARY XI • At least 6% of ERDF allocations have to go for the SUD approach (in the case of and or achieving multiple integrated development objectives. All urban areas that access Romania, this amounts to at least 1 bn. Euro); pre-allocated funds, should have an integrated territorial strategy in place, covering the metropolitan area/FUA, and with a list of priority projects for the entire estimated • For SUD implementation, Member States could employ Integrated Territorial Investments capital investment budget for the 2021-2029 Implementation Period. Urban areas that (ITI), Community-Led Local Development (CLLD), or other organizational models (e.g. access financing solely through competitive calls (e.g. smaller urban areas) should only dedicated operational programme, dedicated priority axis under an operational be required that the financed projects are included in an existing strategy/plan approved programme). by the local council. For large urban areas (e.g. growth poles and, potentially, development • To have territorial strategies in place, which can be drawn from existing strategies or poles), financing should also be available for suburban and peri-urban areas. plans, and, at a minimum have to include the following: a) the geographical area covered • Strengthened implementation capability through ITIs. ITIs should ideally target only by the strategy; b) an analysis of the development needs and the potential of the area; large metropolitan areas and urban agglomerations, where a clear interest is expressed by c) a description of an integrated approach to address the identified development needs local administrations. All ITIs should elaborate integrated territorial strategies for the ITI and potential; d) a description of the involvement of partners […] in the preparation and territory, which should draw on existing strategies and plans, which are inclusive of a list implementation of the strategy. of priority projects for the entire estimated capital investment budget for the 2021-2029 • There is no requirement to set up Urban Authorities, as was the case for the 2014-2020 Implementation Period. Unlike the other two main options, an intermediate body also should Programming Period, but “where an urban, local or other territorial authority or body be put in place and be responsible with the management of EU funds at the local level. carries out tasks falling under the responsibility of the Managing Authority other than • Decentralization through the development of Regional OPs. If regional OPs will be the selection of operations, the authority shall be identified by the Managing Authority put into place, then the SUD approach can be negotiated individually in each individual as an Intermediate Body.” region, based on the needs and characteristics of urban areas in the respective regions. In such a situation, both ITIs and dedicated priority axes could be used for the SUD In addition to these minimum requirements imposed through the Cohesion Policy 2021-2027, approach, with the choice of the two instruments to be decided regionally. Member States can choose to promote additional strategic requirements. These additional strategic requirements should ideally find an equilibrium between the positive impact they hope to The report also discusses some of the risks that should be kept in mind when the decision for a achieve, the burden they impose on beneficiaries, and the benefits they generate for beneficiaries. SUD approach is taken, focusing on three types of risks: 1) contextual s; 2) implementation; and In simplistic terms, the larger the resources allocated, the higher the strategic requirements can 3) collaboration. Some key takeaways include: be, and vice-versa. • Contextual risks. EU funds are not a panacea for development. They can help fill in The report proposes a way to think about potential strategic requirements for the SUD 2021- critical public infrastructure gaps and help address key developmental challenges (e.g. 2027, based on the types of organizational models that could be adopted. Recommendations are re-training courses for unemployed people), but they cannot substitute for a strong summarized below: private sector. Finland currently has the highest absorption rate of EU funds, but it has had a sluggish economic performance since Nokia exited the mobile telephony market. • Clear eligibility of geographic areas and investments. This can be through a dedicated There is also a risk of creating a dependency on EU funds, which may hamper innovative priority axis whose strategic requirements are adjusted based on the number of urban entrepreneurial activities. areas that are eligible, the individual allocations for these urban areas, and the variety of interventions eligible under the approach. At a minimum, strategic requirements should • Implementation risks. The implementation of EU funds requires a fine balance between require that an integrated territorial strategy be in place, which can and should absorption and impact. There is an inherent risk that a drive to absorb EU funds at all draw on existing strategies and plans (with updates where needed), and that a list cost may lead to a squandering of resources, or, worse, investment in projects that have of priority projects be in place. The list of priority projects should not be limited to a negative developmental impact in the long term (e.g. projects that burden national and those projects eligible for SUD 2021-2027 funding but include a comprehensive list local budgets with operation and maintenance costs). On the other hand, focusing only of priority projects for the estimated capital investment budget of the respective on impacts may leave sizeable grants unspent, and small but impactful projects may be locality, for the 2021-2029 Implementation Period. For large urban areas, integrated passed on. Administrative capacity, such as culture, and context, also play a significant territorial strategies should cover the functional urban area, or the metropolitan role in implementation outcomes. area (if a metropolitan inter-communal development association is in place), and • Collaboration risks. The more a country develops, and the more complex its economy funding should be eligible also for suburban and peri-urban localities. becomes, the higher is the need for inter-jurisdictional solutions. Unfortunately, developing • Integrated financial arrangements through a dedicated operational programme. A countries are often in a situation where they have to address new problems with old dedicated operational programme could focus both on a limited number of urban areas institutions. Trust, incentives, and the legal framework all play a role in the success or cover all urban areas. Regardless of the approach chosen, an important condition of a of inter-jurisdictional agreements. EU funds can help incentivize inter-jurisdictional dedicated OP is that a number of priority axes under the OP should include pre-allocated agreements, but the actors involved in such agreements need to acknowledge the financing for large strategic projects, especially those impacting multiple jurisdictions benefits of such agreements to ensure their long-term survival. XII OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS In order to anchor successful inter-jurisdictional organizational models on the basis of which the SUD strategies will nest, the following strategic requirements are recommended to shape the program design for the 2021-2027 Programming period: • Clear and focused criteria for eligible territories and projects – there is evidence that urban areas are at the core of regional and national economic growth. As such SUD targeted areas should be informed by national and regional level analysis to better understand their role in contributing to national economic growth. • Integrated territorial plans supported by a dedicated operational programme - integrated territorial plans at the scale of the identified impact area (i.e. FUA, metropolitan, city, etc.) should be the basis on which investment decisions are made, INTRODUCTION taking into account the integrated nature of challenges to be addressed. • Decentralization should be considered as evidence that shows that well-capacitated local administrators have a much closer relationship with ultimate beneficiaries. To this end consideration should be given to Regional Operational Programme supported by a variety of instruments and delivery mechanism such as ITI, CLLDs, IBs etc. • Citizen engagement should be at the center of strategy development and implementation. This has the dual benefit of enhancing the quality of projects and their implementation and of building and strengthening civic society capacity, thus contributing to enhancement of broader human capacity. • Expanding the menu of eligible thematic areas - in the 2014-2020 SUD implementation, Romania had significantly less eligible thematic areas, especially considering the financial allocations made. In the next programing period, this menu should be expanded to cater for a more varied project profile. • Greater flexibility – administrative burdens imposed by overly complex and centralized decision-making processes may have contributed to lackluster funds absorption. In the next programing period, there should be greater flexibility in matching eligible institutions to financial support in response to identified challenges. • Capacity building should be a defining feature of SUD implementation in the 2021- 2027 Programming Period informed from lessons gleaned in the 2014-2020 period in Romania and other member states. The departure point for this should be reinforcing existing institutions (such as the Regional Agencies) that have proven their worth and clearly define their mandate and make dedicated resources available. INTRODUCTION 3 The mandate of the EU Cohesion’s Policy is to narrow development gaps and reduce disparities between member countries and regions whilst supporting the European Union’s growth agenda more generally. Around €454 billion of European Structural and Investment (ESI) Funds have been allocated to help EU regions become more competitive in the 2014-2020 Programming Period, with a focus on less developed regions (with a GDP per capita (PPS) of less than 75% of the EU average) and transitions regions (with a GDP per capita (PPS) between 75% and 90% of the EU average). However, not all EU regions have been able to take full advantage of the benefits, due inter alia to the effects of the 2008 economic crisis and structural problems. Consequently, Ms. Corina Crețu, the Commissioner for Regional Policy, with the Task Force for Better Implementation, initiated the Lagging Regions Initiative to identify growth constraints in less developed regions, and provide targeted assistance and programs to foster growth. Thus, lagging regions development support is offered to a broad range of stakeholders (regional and local administrations, educational institutions, business support institutions, small-and medium- sized enterprises (SMEs), entrepreneurs, investors, non-governmental organizations, international financing institutions). It is meant to maximize the impact of regional investments. Two types of lagging regions were identified in the EU: • LOW GROWTH REGIONS: cover less developed and transition regions that did not converge to the EU average between the years 2000 and 2013 in member states with a GDP per capita (PPS) below the EU average in 2013. These include almost all the less developed and transition regions of Greece, Italy, Spain, and Portugal. • LOW INCOME REGIONS: cover all the regions with a GDP per capita (PPS) below 50% of the EU average in 2013. This group covers the less developed regions of Bulgaria, Hungary, Poland and Romania. Poland and Romania were the first countries to pilot this initiative, with two regions each – Świętokrzyskie and Podkarpackie in Poland, and Northwest and Northeast in Romania. Since these first pilot projects, the work has been extended both thematically and geographically (e.g. Slovakia was included in the initiative), with a focus on determining how regions can become more competitive and inclusive. 4 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS INTRODUCTION 5 FIGURE 1. Development (CLLD). The European Commission also wants to offer “more incentives for a more NUTS 2 regions classified by Cohesion Policy category (left) and Lagging Region category (right) effective governance based on partnership, multi-level governance and an integrated place- based approach in its programmes”2. EU Cohesion Policy region Lagging region More developed Low income Transition Low growth Less developed Thus, all EU Member Countries, Romania included, have to have a stronger focus on cross-sectoral Non-EU or No data and inter-jurisdictional approaches, and they have to better respond to the needs of territories that may not be defined by one clear administrative boundary. With this in mind, a new Administrative Agreement (AA) for the Romania Multi-municipality Financing Program was signed between the European Commission and the International Bank for Reconstruction and Development with the objective to support Romania identify ways to improve the impact of its investments in urban areas through better territorial planning, and by providing inputs into the design of multi-municipal financing instruments and recommending relevant institutional structures. The following activities are envisaged under the project: • Activity 1. Identification of intervention areas/sectors, in which there could be intrinsic added value for channeling EU funding through municipalities, FUA /metropolitan and/ or regional associative bodies (such as IDAs , RDAs etc.) in place of, or in addition to national authorities responsible for functions such as health, tourism, energy, education, social services, urban and metropolitan/regional transport, competitiveness and support for SMEs and innovation, etc. • Activity 2. Analysis of the need for an overall or sector specific forms of territorial 0 250 500 1,000 km 0 250 500 1,000 km cooperation (such as metropolitan IDAs, project-oriented partnerships between TAUs, etc.), for instances in which EU funding could be organized at the subnational level. These Analytical work undertaken in recent years1, indicates that the performance of regions in the EU is forms of cooperation could come to complement or supplement the current model used clearly linked to the performance of urban areas within the region. The most dynamic EU regions for EU funding, which focuses only on the administrative territory of the eligible county either have one or more metropolitan areas or urban agglomerations within their boundaries, or seats. they are close to one in another region. Without strong urban areas, one cannot have strong regions. Cities function as pulse beacons, diffusing development to the areas around them. • Activity 3. If the opportunity for such an intercommunity or regional model is confirmed for any of the intervention areas/sectors under analysis, the project will identify suitable Strong cities are not enough though. To ensure that the benefits of city development also spill organizational models (for example, establishing a new intercommunity association or over to the urban hinterland, it is critical to devise and encourage inter-jurisdictional cooperation making use of an existing one, or ad-hoc initiatives, such as a partnership agreement for and development. Few urban investments nowadays have impact only on one administrative unit, a certain investment project) and functional within Romania for each of the intervention so provisions should be in place for inter-jurisdictional planning and implementation. For example, areas/sectors. the suburban and peri-urban areas of Bucharest and the 40 county capitals generate 20% of firm revenues in the country, have attracted 31% of migrants, and have received 32% of new • Activity 4. In case EU funding is proposed on a new, alternative organizational model, housing units after 1990. However, little has been done to foster inter-jurisdictional dynamics different from the ones already existing in Romania and based on international best between core cities and their suburban and peri-urban areas (e.g. metropolitan mobility, cross- practices, establish the implications for: jurisdictional investments, sharing of services). i. The need for integrated urban development strategies/plans. For the 2021-2027 Programming Period, the European Commission proposed that the ii. The need to strengthen administrative capacity, at different levels. European Regional Development Fund (ERDF) will have a stronger focus on sustainable urban This report corresponds to Activity 4 listed above. The report looks at the potential strategic development (SUD) activities, with Member States having to allocate least 6% of ERDF funds requirements that may be required by the different organizational models, and some of the risks for integrated development in urban areas (Sustainable Urban Development), either through a that come from applying these strategic requirements. Examples from different EU Member dedicated operational programme, a dedicated priority axis, within an operational programme, Countries will be drawn upon, and a more extensive discussion on risks (e.g. some of the negative or with the help of tools such as Integrated Territorial Investments (ITI) or Community-Led Local externalities EU Funds could generate) will be undertaken. 1 See for example: Farole, Thomas, Soraya Goga, and Marcel Ionescu-Heroiu. 2018. Rethinking Lagging Regions: Using Cohesion Policy to Deliver on the Potential of Europe’s Regions. World Bank Publications. 2 European Commission. 2018. Policy Objective 5 – Europe Closer to Citizens and Tools for Integrated Territorial Development [Policy Paper]. BACKGROUND ON STRATEGIC REQUIREMENTS BACKGROUND ON STRATEGIC REQUIREMENTS 9 EU Funds are designed to help directly and indirectly a number of development challenges. At the most basic level, and what most people identify with EU Funds, are the public infrastructure projects that people see going up throughout the country. There are of course less visible projects (e.g. life-long training courses) financed with EU Funds, and there are development results that are achieved in indirect ways, such as improved governance. One of these ways are strategic requirements that Member Countries have to abide by in order to access EU Funds. European Structural and Investment Funds (ESIF) represent the largest development program in the World (the table below indicates the resources EU Member Countries can access through the ESIF), and it makes sense to tie access to these grants to a number of strategic requirements. By-and-large, strategic requirements aim to permanently strengthen institutions in Member Countries, and to make national and sub-national governments more efficient and effective Annex 1 includes the major strategic requirements Romania has to meet for the 2021-2027 Programming Period. These are quite extensive and cover most of the sectors targeted by EU Funds. Strategic requirements also trickle down to the end beneficiaries, in the form of tasks that have to be achieved before the future beneficiaries of EU Funds can apply for those EU Funds. Some of these strategic requirements are imposed through EU Regulations, while others are imposed by individual governments. For the 2014-2020 Programming Period, the Romanian local administrations that wanted to access EU Funds through the Sustainable Urban Development (SUD) approach (i.e. Priority Axis 4 of the Regional Operational Programme (ROP) 2014-2020) had to meet the following major strategic requirements: 1. They had to have an Integrated Urban Development Strategy (IUDS) in place; 2. They had to have a Sustainable Urban Mobility Plan (SUMP) in place, and the SUMP had to feed-in to the IUDS; 3. They had to have an Urban Authority in place, in charge primarily of selecting the priority projects to be financed from Priority Axis 4 of the ROP 2014-2020. For the 2021-2027 Programming Period, the strategic requirements for the SUD approach were not yet known at the time of the writing of this report. The only strategic requirements that are more or less known, are those imposed through the (draft) Cohesion Policy 2021-2027. Thus, each Member State has to allocate at least 6% of ERDF allocations for the SUD approach (in the case of Romania, this means at least ~€1 billion), and to access these SUD funds, local administrations have to have an IUDS in place. 10 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS BACKGROUND ON STRATEGIC REQUIREMENTS 11 TABLE 1. For the 2021-2027 Programming Period, the strategic requirements for the SUD approach were Proposed allocations to Member States per Fund for 2021-2027 (in million euros, current prices) not yet known at the time of the writing of this report. The only strategic requirements that are more or less known, are those imposed through the (draft) Cohesion Policy 2021-2027. Thus, of which to trans- CPR proposal, ESF+ ERDF ETC CF Transfers* each Member State has to allocate at least 6% of ERDF allocations for the SUD approach (in fer to the CEF Annex XXII the case of Romania, this means at least ~€1 billion), and to access these SUD funds, local BELGIUM 1 177 1 158 405 0 0 15 2 754 administrations have to have an IUDS in place. BULGARIA 2 588 5 643 143 1 654 401 54 10 082 CZECHIA 2 737 10 524 314 6 444 1 563 100 20 116 At the time of the writing of this report, there were also a number of strategic requirements pertaining to the thematic concentration of EU funds, as follows: DENMARK 181 213 249 0 0 3 646 GERMANY 6 205 10 346 1 029 0 0 101 17 681 • 35% of ERDF funds have to be allocated for PO1 (Smarter Europe) interventions; ESTONIA 492 1 651 51 1 075 261 16 3 285 • 30% of ERDF funds have to be allocated for PO2 (Greener Europe) interventions; IRELAND 579 450 190 0 0 7 1 226 • The ERDF has to contribute 30% to climate change objectives; GREECE 5 900 11 528 120 4 034 978 116 21 697 • CF has to contribute 37% to climate change objectives; SPAIN 12 084 25 377 639 0 0 221 38 325 • 2% of the ESF+ have to be allocated for material support for disadvantaged people; FRANCE 7 194 9 654 1 106 0 0 102 18 058 • 25% of the ESF+ have to be allocated for social inclusion; and CROATIA 2 145 5 776 219 1 695 411 53 9 888 • 10% of the ESF+ have to provide support for unemployed youths. ITALY 15 011 27 411 788 0 0 252 43 463 Further, for the 2021-2027 Programming Period, the European Commission has had a strong CYPRUS 207 434 24 319 77 4 989 focus on simplification – which also applies to the way strategic requirements are designed. LATVIA 736 2 573 55 1 424 345 24 4 812 The idea is to remove strategic requirements that burden the system and focus on those than LITHUANIA 1 029 3 127 88 2 085 506 31 6 359 strengthen institutions. Annex 2 includes the complete list of major simplifications included in the Cohesion Policy 2021-2027. Below, some of the simplifications that will impact the way the LUXEMBOURG 21 21 30 0 0 0 73 SUD approach is designed are listed: HUNGARY 4 806 11 624 272 3 437 833 109 20 248 MALTA 91 345 14 219 53 3 673 • Simplification 3: A common CF (Cohesion Fund) and ERDF (European Regional NETHERLANDS 552 673 392 0 0 9 1 625 Development Fund) Regulation. A streamlined and integrated CF and ERDF Regulation would also help facilitate integrated urban approaches. For example, for Integrated AUSTRIA 510 695 229 0 0 8 1 442 Territorial Investments (ITIs), it will be easier to include CF interventions in ITI strategies. POLAND 14 297 45 300 595 12 144 2 945 392 72 724 • Simplification 6: Common templates available upfront. Common templates for all funds PORTUGAL 7 579 11 578 142 4 436 1 076 127 23 862 will, again, make integrated approaches, as encouraged through the SUD, more likely. ROMANIA 8 385 17 323 392 4 499 1 091 168 30 766 • Simplification 9: Administrative capacity integrated with sectoral objectives. This SLOVENIA 793 1 673 80 901 218 18 3 464 means that the administrative capacity strengthening component can be bundled under the Policy Objective 5, and, by extension, be embedded within the SUD approach. For SLOVAKIA 2 481 8 345 235 2 173 527 71 13 305 example, projects focusing on strengthening administrative capacity could be embedded FINLAND 725 944 129 0 0 10 1 809 directly into an IUDS. SWEDEN 946 1 121 333 0 0 13 2 413 • Simplification 25: Shorter, better structured programmes. This can help lighten the Technical assistance* 349 737 29 153 burden when designing the SUD approach and organizational models for 2021-2027. Transnational • Simplification 28: Minor changes and corrections do not require a Commission decision. 200 cooperation * This will make it easier to adjust IUDS where needed. EUI * 564 • Simplifications 32-40: Territorial tools – Simpler design tailored to local situations. Interregional ** 1 206 1 206 These simplifications directly target the SUD approach and include a number of important provisions, such as: existing programming and implementation structures TOTAL 100 000 216 808 9 498 46 692 11 285 2 027 372 991 can be continued; territorial tools used under Policy Objective 5 can combine activities 12 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS financed under all other policy objectives; much shorter provisions on CLLD and ITI; the same rules are defined for all territorial tools, with a defined minimum set of requirements for territorial strategies; clarification on when an intermediate body is needed at the local level; a single instrument, the European Urban Initiative will bring together several urban instruments. • Simplification 49: Straightforward transfer system among Funds and instruments. This will ease the combination of funds for tools such as the ITI. • Simplification 51: Designation procedure discontinued. Existing entities engaged in the management of EU Funds can be simply “rolled over” from the current programming period, to the next. • Simplification 61: More flexible combination of grants with financial instruments. In an IUDS it will be possible to combine grants and financial instruments as a single operation. STRATEGIC REQUIREMENTS The draft Cohesion Policy 2021-2027 proposes a general structure for all territorial strategies, FOR SUD 2021-2027 which should, at a minimum, include: ORGANIZATIONAL MODELS a. the geographical area covered by the strategy; b. an analysis of the development needs and the potential of the area; c. a description of an integrated approach to address the identified development needs and the potential; d. a description of the involvement of partners […] in the preparation and in the implementation of the strategy. Moreover, these territorial strategies should draw on existing strategies and plans, rather than require the elaboration of new documents. The need for an Urban Authority at the local level is eliminated, but flexibility is given to local administrations that want to play a more comprehensive role in the management of EU funds. Thus the Cohesion Policy 2021-2027 stipulates: Where an urban, local or other territorial authority or body carries out tasks falling under the responsibility of the managing authority other than the selection of operations, the authority shall be identified by the managing authority as an intermediate body. One measure for 2021-2027, which will impact particularly smaller and poorer beneficiaries, is that the rate of co-financing for less-developed regions is 70% (down from 85%), and for developed regions it is 40%. STRATEGIC REQUIREMENTS FOR SUD 2021-2027 ORGANIZATIONAL MODELS 15 In the current programming period, the regulation (Article 7 of the ERDF regulation) imposed a limited number of Strategic requirements for SUD implementation. Regardless of the implementation mechanism chosen by member states (ITI, dedicated OP, dedicated Priority Axis, CLLD) the SUD strategic requirements included: 1. dedication of 5% of ERDF resources to SUD, 2. preparation of a SUD strategy, 3. designation of the territory eligible for SUD, 4. creation of a SUD Implementing Body at the local level. In the post 2020 programming period, the draft regulations stipulate that a minimum of 6 % of ERDF funds should be allocated to SUD implementation in each Member State. There is increased flexibility for Member States in terms of designing their SUD implementation models, based on their 2014-2020 experience, the main difference is that under the draft regulations local authorities will no longer be required to adopt formal IB status. In the 2014-2020 programming period Member States designed a variety of national and/or regional strategic requirements to ensure coherent, efficient and effective implementation. The post 2020 Romanian SUD model could benefit from analyzing experiences of other countries. The regulation and Commission guidelines left considerable scope for Member States to decide what type of urban areas they would like to target, although the SUD approach was designed primarily for metropolitan areas and urban agglomerations. The figure below provides an overview of the size of urban areas that were selected for SUD implementation across the EU. The size of urban areas ranges from the inclusion of smaller urban centers (<25,000 inhabitants) in Germany, Greece, Ireland, Portugal, Spain, Latvia and Slovenia to those that only focus on a few of the largest urban areas (Belgium, the Netherlands, United Kingdom, Sweden). 16 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS STRATEGIC REQUIREMENTS FOR SUD 2021-2027 ORGANIZATIONAL MODELS 17 FIGURE 2. they wanted to increase the quality of SUD strategies. Other Member States that included Size of urban population of SUD strategies in 2014-20 (n=347) mobility plans were Romania, Cyprus, Czechia, Slovakia, Italy.3 In other countries the requirement for a dedicated strategy was largely fulfilled by pre-existing strategic documents. For example, in 25% the Netherlands the Implementation Plan was a translation of pre-existing local strategies which 23% 22% required relatively minor adaptions to be compatible with SUD requirements (see Box 1). 20% 17% The European Commission published the guidelines for SUD implementation relatively late 15% on in the 2014-2020 programming period. It also purposely (in order to ensure flexibility) left 14% considerable scope for local interpretation of the requirements. As a consequence, many Member 10% 10% States and regions formulated their own guidelines in order to establish quality standards. 8% These guidelines took different forms (van der Zwet et al, 2019): 6% 5% • formal guidance could be issued by the MA (e.g. Ireland, Czech Republic, Bulgaria and Lithuania); 0% 0% • use of standardized templates for strategic documents (e.g. Romania, France, or the <25,000 25,000 - 50,000 - 100,000 - 250,000 - 500,000 - 1,000,000 - >5,000,000 50,000 100,000 250,000 500,000 1,000,000 5,000,000 Netherlands); Source: van der Zwet et al. (2017) • in cases where calls for strategies were used, the call document would formulate detailed requirements (e.g. Portugal, Spain); The figure below provides an EU wide overview of the types of urban areas that are covered by SUD strategies in Member States. Around 50 percent of the strategies cover an existing administrative • dedicated workshops were also used to inform staff of technical requirements (e.g. Poland). unit, about a third of strategies cover a wider FUA and 15 % focus on a neighborhood/area within an administrative area. The availability of guidance, templates, workshops, etc. determines whether approaches across Member States and regions have been standardized. An analysis of over 400 strategic documents in all member states (van der Zwet et al., 2017) demonstrates that in most cases FIGURE 3. strategic documents have clear sections that will set-out the challenges and objectives based Territorial scope of SUD strategies 2014-20 period (n=356) on an integrated approach and supported by a clear intervention logic. Yet elements such as governance arrangements are less often explicitly included in strategic documents. 60% 50% 49% BOX 1. Examples of content of SUD strategy documents 40% 33% In Poland SUD strategies include several elements: coherence with domestic policy frameworks; characteristics of the FUA: territory, population, municipalities; FUA area analysis (often including SWOT); mission, objectives, priorities of the strategy; 30% project selection criteria; list of strategic projects; list of complementary projects funded from other sources; funding allocations; governance arrangements; planned monitoring and evaluation; process of the strategy preparation; information on 20% environmental impact assessment of the planned investments. 15% In the Netherlands each of the four eligible SUD cities drafted an implementation plan (around 20 pages) which linked ERDF 10% and ESF investment to local strategies. For example, the implementation plan for The Hague consisted of a description of the 2% regional context, identification of challenges, prioritization of the opportunities, description of fund allocations (ESF and ERDF), 0% description of the funding instruments (i.e. financial instruments) and governance arrangements. Administrative area Functional urban area A specific part of an Other of city/town / Metropolitan area urban area (district, In Bretagne (France) partnership contracts between urban areas and the MA consisted of two parts an analysis of the shared (covers multiple local neighborhood) challenges and opportunities for the metropolitan pole which includes local and regional issues and identifies priority areas administrations) for investment at the regional level; a partnership contract which sets the tools for implementing the priorities including the objectives and length of the contract, the allocated funds and governance arrangements. Source: van der Zwet et al. (2017) In Belgium ITI strategies were drafted on the basis of local strategies. The formal ITI strategy documents consisted of a policy There is a considerable variation in terms of the documentary requirements for the implementation note which set out the context of the ERDF programme objectives, including priorities, a description of the ITI tool, financial of SUD strategies. Various countries required urban authorities to submit additional documents, allocations, governance structures; strategic framework for the strategy including a SWOT and a summary of local strategic such as Mobility Plans, Urban Regeneration Plans, or CLLD Strategies. Mobility plans were usually documents; project call and selection procedures. required in relation to SUD Thematic Objective 7 (Sustainable Transport) – i.e. for urban areas that hoped to use SUD funds for mobility investments. In Portugal, national authorities stipulated that urban authorities should prepare mobility plans and revitalization plans, etc. In this way, 3 For more information see: van der Zwet et al (2017) Annex 4, available on: https://ec.europa.eu/regional_policy/sources/ docgener/studies/pdf/integrated_strategies/annex_4_strategy_fiches.pdf 18 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS STRATEGIC REQUIREMENTS FOR SUD 2021-2027 ORGANIZATIONAL MODELS 19 Some Member States also imposed strategic requirements that enforced collaboration between FIGURE 4. municipalities. For example, in Poland, national authorities required establishing a formal Delegation of responsibilities across 300 SUD strategies in the EU (n=306) collaboration of municipalities belonging to each FUA. In this way, Polish authorities aimed to 100% strengthen the metropolitan approach to local development, and to promote partnership principle in SUD. In Finland, SUD implementation required the establishment of a network between cities. 90% A study of over 300 SUD strategies in Member States (van der Zwet et al. 2017) showed that the strategic requirements for governance arrangements vary considerably. The figure above 80% provides an overview of key tasks in terms of strategy development, preparing calls for projects, selection of operations and monitoring, management and evaluation and how they were divided 70% between urban authorities and the MA. Tasks that were in almost all cases delegated to the urban authority were the development of the strategy and implementation plan. 60% Urban authorities usually also had a role in animation of projects, preparation of project calls, launching calls, collecting applications, quality assessment of the operations. In several member states, the 50% national authorities required that IBs prepare SUD-specific criteria, which would allow assessing the extent to which planned projects contribute to achieving objectives of SUD strategies . 40% The Managing Authority (MA) in most cases retained at least a degree of responsibility for approval of strategies, verification of the selection procedures, eligibility checks, final verification 30% of operations, signing grant applications, financial management and evaluation. Annex 3 provides further details on the extent to which responsibilities had been delegated to local level IBs. The 20% main conclusions are that the extent of delegation in many cases depends on experience in previous programming periods, capacity at the local level, size of funding allocations, size of city and domestic governance/constitutional arrangements. 10% Output 4, under this Program, showed that particular organizational models were more likely to 0% be used in certain contexts: Development of strategies Development of implementation plan Approval of stategy Provide information to beneficiaries Verification of selection procedures Definition of selection criteria Preparation of project calls Launch of calls Collection of applications Eligibility check Quality assessment of operations Final verification Signature of grant contract Financial management (check and financial control) Monitoring and reporting Evaluation • Dedicated multi-thematic priority axes were more often used in Member States or regions where fund allocations were lower and/or where a high number of urban areas were selected for SUD implementation. They also tended to have fewer thematic objectives than strategies implemented with other mechanisms. • Integrated Territorial Investments (ITIs) were more often used in member states that implemented SUD in fewer and larger urban areas and/or received higher financial allocations. They also offered a broader choice of thematic objectives, as well as for merging various funds (e.g. ERDF and ESF). ITIs also where more likely to target territories that were not an administrative unit, e.g. functional urban areas, multiple cities, neighborhoods, or coastal, mountainous and cross-border areas. • Only Italy had an Operational Programme dedicated to several pre-designated metropolitan areas. This approach was closely linked to a new national urban policy. Strategy Calls for projects Selection of operations Monitoring Several Member States used Operational Programme dedicated to a single city (e.g. Prague, development management and Brussels and Stockholm) either acknowledging the specific role and challenges of the city or evaluation following pre-existing approaches. Urban autority only Shared responsibility MA only Considering these characteristics, the following strategic requirements can be considered for particular implementation mechanisms in Romania. Source: van der Zwet et al. 2017 20 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS STRATEGIC REQUIREMENTS FOR SUD 2021-2027 ORGANIZATIONAL MODELS 21 Dedicated Priority Axis under a commonalities (e.g. in terms of population size, social challenges and/or economic specialization). In this way, the OP focusses on their specific needs and challenges. In this context, the strategic national OP requirements might include: 1. Clear criterion of defining which cities belong to the OP – either size (e.g. min. 100 thousand inhabitants), status (e.g. county capitals), or based on an independent analysis This mechanism seems suitable especially if SUD resources are allocated to numerous urban of functional urban centers in a Member State. (e.g. municipalities belonging to functional areas, the SUD budget per each area is relatively low, and the expected number of projects is areas of growth poles and urban development poles). limited. In this situation, the strategic requirements might include: 2. Updated SUD strategies for all targeted areas – These strategies should include 1. Clear criterion for eligibility – either in terms of size of population4 (e.g. min. 50 a diagnosis of the key challenges of the area, and also potentially predefining crucial thousand inhabitants) status (e.g. county capitals and their FUAs), or based on a set of investments to fulfil the strategic objectives. They should include both the investments other criteria (e.g. municipalities belonging to functional areas of growth poles and urban covered under the five Cohesion Policy objective, and other domestic policy objectives to development). ensure a comprehensive and coherent approach. 2. Relying on an intermediary body at the regional level – The IB (in the case of 3. Formal preselection of projects in every urban area as part of the strategy design Romania, the IB would most likely be the regional development agency) would take on process – This approach allows urban centers to allocate their resources to those issues key management responsibilities in order to concentrate administrative capacity and that are most pressing. Preselection should be followed by a strict timeline of submitting reduce the burden on cities. It would define project selection criteria adjusted to the the projects in order to prevent delays. In addition, smaller, less strategic projects, could regional context (which would make most sense if a move towards regional operational be accessed competitively under individual priority axes of the dedicated OP. programmes is made), animate project preparation by the urban areas belonging to its territory, conduct project assessment (possibly leading to project preselection), and 4. Requirement for mobility plans, urban regeneration plans, or other thematic monitoring of SUD implementation. The IB would also assume as many responsibilities documents – if the allocations are substantial in real terms then additional strategic from the MA as possible, to ensure that key operational steps are handled closer to the planning documents are needed to ensure an effective approach to SUD implementation, beneficiaries, and not in Bucharest. and a focus on pre-selected priority projects. The documentary requirements depend on the available thematic objectives for SUD implementation (e.g. if transport is a major 3. Creating a list of preselected strategic projects - rather than competitively selecting objective it should include mobility plans). projects in every urban area (to be funded from ERDF or other funds) - would identify and prioritize key projects in order to use the limited resources for addressing the most 5. RDAs could be the IBs for the dedicated OP – Similar to the role they now play for pressing needs and challenges defined by local authorities. This should be followed by a the ROP, RDAs would also be IBs for the dedicated Urban OP. For large allocations per strict timeline of submitting the projects in order to prevent delays. Local administrations urban area, secondary IBs could be considered. This would ensure sufficient capacity would not be limited however to competitively access financing for other project, from and efficient implementation in each of the targeted urban areas. The tasks of local IBs different priority axes. could be limited at the start of the programme period (e.g. preparation of SUD strategy, preparing SUD-specific project (pre)selection criteria, project animation, monitoring), and 4. A more proportional approach towards strategy design – requirements for new expanded during the implementation process depending on the administrative capacity strategy or additional planning documents can be lowered in order to reduce the building effects. Alternatively, IBs could be set up at the level of the local administration, administrative burden on urban areas. The draft Cohesion Policy 2021-2027 makes the way it was done in Italy (where the project management directorates took on this role). minimal requirements for how a territorial strategy should look and encourages the use of existing strategies and plans. 6. Signing formal MA-IB agreements - The IBs’ tasks and those of the MA should be clearly defined and agreed in agreements that are binding. These agreements should include formal governance arrangements as well as rules of interinstitutional collaboration. This Dedicated OP for multiple urban will allow clarifying implementation procedures and ensure efficient implementation. The agreements would differ based on who will take on the IB responsibilities (e.g. the RDA areas or the local administrations). This solution appears the most appropriate in cases where there is an existing or emerging national metropolitan or urban policy, to which the OP can contribute with significant extra Dedicated OP for a single urban area resources. Alternatively, it can be used in cases where there is a number of urban areas that share This solution seems the most suitable for the Bucharest-Ilfov Urban Area, considering its distinct socio-economic situation. A dedicated OP would be appropriate if significant resources 4 Spain provides a good example of population-based criteria. Four types of urban area were eligible: a municipality with a population above 20,000; groups of municipalities with a population in each exceeding 20,000; a municipality of more than are planned to be invested in the city and its metropolitan area. In this case, the strategic 20,000 inhabitants combined with peripheral municipalities of less than 20,000 inhabitants; and groups of municipalities requirements might include: with less than 20,000 inhabitants forming an urban area with more than 20,000 inhabitants. 22 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS STRATEGIC REQUIREMENTS FOR SUD 2021-2027 ORGANIZATIONAL MODELS 23 1. A new or updated SUD strategy which is drafted as part of the OP design – The 3. Formal pre-selection of strategic projects – This would allow resources to be directed strategy should provide a diagnosis of the key challenges and opportunities of the FUA, to the most pressing needs and challenges defined by local authorities. This should be and also potentially predefine crucial investments to fulfil the strategic objectives. These followed by a strict timeline for submitting the projects in order to prevent delays. should include both the investments covered under the five Cohesion Policy objectives, 4. Requirement for mobility plans, urban regeneration plans, or other thematic and other domestic policy objectives to ensure comprehensive interventions. To simplify documents – If the allocations are substantial in real terms then additional strategic things, the strategy could be the Regional Development Plan, under preparation by the planning documents are needed to ensure an effective approach to SUD implementation. Bucharest-Ilfov Regional Development Agency. The documentary requirements depend on the available thematic objectives for SUD 2. Formal pre-selection of projects – This would allow resources to be directed to the implementation (e.g. if transport is a major objective it should include mobility plans). most pressing needs and challenges defined by local authorities. This should be followed 5. IBs at the local or regional level – Each ITI is required to have an Intermediary Body by a strict timeline for submitting the projects in order to prevent delays. Projects could (may be a secondary IB) responsible for the management of pre-allocated EU Funds, also be accessed competitively under individual priority axes, by different beneficiaries particularly the relationship with end-beneficiaries. The tasks of IBs could be limited in the within the Bucharest area. beginning (e.g. preparation of territorial strategy, preparing specific project (pre)selection 3. Requirement for mobility plans, urban regeneration plans, or other thematic criteria, project animation, monitoring), and increased during the implementation process documents – If the allocations are substantial in real terms then additional strategic depending on the administrative capacity building effects. planning documents are needed to ensure an effective approach to SUD implementation. 6. Signing formal MA-IB agreements - The IB’s tasks and those of the MA should be clearly The documentary requirements depend on the available thematic objectives for SUD defined and agreed in agreements that are binding. These agreements should include implementation (e.g. if transport is a major objective it should include mobility plans). formal governance arrangements as well as rules of interinstitutional collaboration. This 4. Inter-municipal collaboration agreements - If the OP includes the whole FUA of will allow clarifying the implementation procedures and ensure efficient implementation. Bucharest and not only the city, the conditionality might also include the requirement 7. Formalizing inter-municipal collaboration – The FUA partners should define the of formalizing inter-municipal collaboration, defining the collective objectives, decision- collective objectives, decision-making rules and the share of responsibilities for the making rules and the share of responsibilities. whole FUA. The conditionality might predefine available forms of collaboration based 5. The MA of the OP would take on all implementation and management responsibilities on the national legal framework and indication which forms will be most suitable for – There would be no requirement to establish separate IBs at the local level. The role of SUD implementation. There should be flexibility for each FUA to choose an appropriate the MA could be taken by the Bucharest-Ilfov Regional Development Agency, and the IB collaboration mechanism as they will require different levels of engagement and should could sit with the Bucharest City Hall, or with a joint-secretariat set up by Bucharest be adjusted to the trust among municipal representatives and their common ambitions City Hall, Ilfov County, the six district city halls, and representatives of the territorial and expected benefits. administrative units in Ilfov County. Regional Operational Programmes Integrated Territorial Investments This solution appears as the most suitable for a situation in which urban areas in the country This tool, designed by the EC to complement other organizational models, seems most suitable face varying challenges and have diverse needs. Each ROP can define development objectives and for introducing new approaches to implementing EU funds, e.g. crossing administrative boundaries indicators, thematic objectives available for SUD, implementation mechanisms (ITI, CLLD, Priority (e.g. in functional urban areas), or linking investments from multiple funds in the same urban Axis etc.), and increase resources for SUD implementation (from the minimum 6%). In such cases, area. In such a case, the strategic requirements can include: the strategic requirements could also be defined at the regional level, depending on the resources 1. Formal criterion of defining which areas are targeted by ITI, and which public allocated to SUD, number of targeted areas and the type of urban areas (neighborhoods, FUAs, administrations belong to that area – The EC recommends that a sound justification towns). Depending on the chosen implementation model, the strategic requirements could follow be given for why a particular area was chosen for the ITI tool, and a clear explanation recommendations suggested for different options above. One thing to keep in mind though is why other mechanisms are less suited to respond to that area’s needs. The formal that, when allocations per urban area are decided at the regional level, there will be a significant selection of eligible areas could be followed by a lobbying stage in which additional areas pressure to spread the funds to as many urban areas as possible, which does not allow the might volunteer to implement ITI, and/or additional municipalities might want to join or concentration of resources for addressing the needs of larger urban areas. resign from belonging to an assigned area. 2. A new or updated SUD strategy for the designated area/territory – The strategy If regional operational programmes are devised, another option is that of having a national should diagnose the key challenges and opportunities in relation to the whole territory, tool (e.g. dedicate OP) or a local tool (e.g. ITI), designed specifically for large urban areas. The and also potentially predefine crucial investments to fulfil the strategic objectives. These development dynamics of large urban areas are different than the dynamics and needs of should include both the investments covered under the five Cohesion Policy objectives, smaller urban areas, and as such would benefit from a separate treatment. and domestic policy objectives to ensure comprehensive interventions. 24 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS CLLD CLLD is not a tool that is well suited for the outright implementation of the SUD, but is an ideal complement, helping to address targeted issues, at the neighborhood level. For the 2014-2021 Programming Period, the CLLD tool was targeted at marginalized communities in urban areas, although CLLD allocations were not considered to be part of the SUD allocations. For the 2021- 2027 Programming Period, the CLLD tool in urban areas will continue to focus on marginalized communities, but, in addition, there are talks to have the tool focus on competitiveness issues, through the encouragement of a competitive and innovative business environment. The draft Cohesion Policy 2021-2027 indicates that the CLLD tool should: 1. focus on sub-regional areas; 2. be led by local action groups (LAGs), composed of representatives of the public and RISKS AND CONSTRAINTS ASSOCIATED WITH THE private sector, without any single group controlling decision-making; 3. have an integrated strategy at their foundation; and 4. promote innovative and cooperative approaches with and among territorial actors. IMPLEMENTATION OF INTER-JURISDICTIONAL The draft Cohesion Policy also provides more details on the responsibilities of MAs with respect to CLLD agreements, as well as the tasks that LAGs should assume at a minimum. PROJECTS RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECTS 27 This section will evaluate risks associated with implementing inter-jurisdictional projects in the context of planning and implementation of Sustainable Urban Development (SUD) mechanisms in the 2021-2027 Programming Period. The analysis will draw from experiences in other Member States in 2014 – 2020 programing period. Particular attention will be given to the scenario in which SUD will be implemented in functional urban areas. The analysis of the risks will conclude with recommendations of how to limit particular challenges of implementing SUD instruments in Romania. Specific consideration will be given to risks associated with each implementation instrument (i.e. ITI, Priority Axis and OP). Three types of risks were identified during the analysis of academic literature and case studies of SUD instruments implementation in the 2014-2020 programing period: i. Contextual risks, connected to the FIGURE 5. The types of risks involved in implement- socio-economic and political situation in ing inter-municipal projects within the SUD EU policy Romania and the EU; ii. Implementation risks, directly associated Contextual risks with the characteristics of SUD EU Policy and how this finds expression in Romania; iii. Collaboration risks related to establishing inter-municipal collaborative mechanisms Implementation risks for this purpose. All three types of risks are interconnected in a way that SUD implementation is embedded in the broader context, while inter-municipal Collaboration collaboration happens within the implementation risks framework, and also needs to take the context into consideration. This dependency is illustrated in the figure below. The structure of this chapter will be organized following these three risk types. Source: Own elaboration 28 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECTS 29 Contextual risks 5. Multi-level negotiations of the European regulations - Uncertainty at the EU level influences the programming preparations in Romania, as it is not certain which form the regulations for SUD implementation will take. Furthermore, there is considerable Policy implementation happens within a specific socio-economic, political and geographical uncertainty in relation to time frame due to term changes in the main EU institutions. context. These contextual aspects create risks for implementation and influence the behavior of Thus, the ongoing programming preparations are based on draft regulations, and it is public authorities and other stakeholders involved in the design, management and implementation likely that at least some of the requirements will be modified in further negotiations This of SUD strategies. Importantly, context should be considered on international, national and sub- will require Romanian SUD implementation plans to be adjusted accordingly, potentially national levels, which is why each EU member state, region and municipality might have different delaying implementation. conditions for implementing the same policy. 6. Legal and procedural national framework - National laws directly influence This section signalizes crucial contextual risks, as they should be acknowledged when preparing implementation and inter-municipal collaboration. First, they define what local SUD implementation system in Romania. However, these risks are the most difficult to overcome governments are able to do, influencing the kind of investments that can be supported as usually they do not depend on national government or reflect long-term processes that are by EU funds at a particular level. Furthermore, national regulations provide the basis of difficult to change. For these reasons, the report lists the risks, but does not form specific the potential inter-municipal collaboration legal forms and the scope of their activity. recommendations. More detailed analysis will be provided for the other two kinds of risks, as they Consequently, some areas that would potentially benefit from collaborative structures can be directly addressed in the programming preparations. (i.e. in functional urban areas), might not be able to adopt inter-municipal collaborative The most important contextual risks in relation to the implementation of SUD that need to be agreements for legal reasons. taken into consideration in Romania are: 7. Administrative culture -The national administrative culture that has formed over time 1. 4Global and European economic conditions - It is important to consider that the can have a major impact on the implementation of SUD. Most importantly, it can influence economic situation in Romania is influenced by the European and global economic trends. employees’ motivation and consequently administrative capacity in institutions involved In this way, the effectiveness of SUD instruments is related to a broader context in which in EU funds management. Furthermore, an administrative culture which undergoes they are implemented, and to the markets to which they contribute. The risks of the continuous and extensive change can also form risks for SUD implementation. It can lead to current economic situation should be considered when planning SUD instruments. For beneficiaries and EU funds managers needing to invest more time in learning the procedures example, if the EU economy performs poorly, it is possible that the positive impact of EU rather than on preparing investments and progressing the policy implementation. funds in Romania will be dimmed, given the 70%-80% of Romanian exports go to the EU. 2. Insufficient private sector development - SUD implementation in each Member State depends also on the condition of its private sector. Romania and Slovakia were among the poorest performers on EU funds in 2007-2013, but also had the fastest economic Implementation and collaboration growth rates in the EU. Finland is the top performer on EU funds, but the crisis of private companies caused major problems for the national economy. This shows that forward- risks thinking and efficient administration is important in ensuring the effectiveness of SUD Regardless of the chosen SUD implementation mechanism, there is a set of strategic and instruments, but only with a strong private sector the development can be truly sustainable. operational decisions to take into account when considering the targeted areas and scope of investments available for the development of the strategies. There are risks associated with 3. EU funds dependency - EU funds can create dependencies among beneficiaries. There choosing each of the available implementation mechanisms, which will be discussed below. is a risk that dependency on EU funds will lower the entrepreneurial drive of local administrations and companies to generate their own sources of funding. Furthermore, activities can become too restrictive, preventing local administrations and firms from thinking outside the strategic requirements that EU funds impose. Strategic implementation risks 4. Political instability - The dynamics of the political situation in a Member States can have a significant impact on the implementation of SUD requirements. If the priorities Some of the factors that policy makers should take into consideration include: and rules change often, it creates ambiguity and uncertainty among beneficiaries and • Type of eligible territory institutions involved in funds management and implementation. Moreover, political • Number of targeted areas instability can particularly effect inter-municipal collaboration, as political leaders of • Delimitation method jurisdictions have direct influence on the collective objectives. If the decision-makers • Thematic scope change, collaboration has increased risk associated with it as each time collaboration • Legal form of collaboration rules and trust have to be rebuilt. 30 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECTS 31 • Size of SUD budget Risk of unfitted FUA delimitation • Localities (e.g. urban, suburban, peri-urban) eligible for SUD funding EU Member States have used SUD resources to target different types of territories (neighborhoods, • IB’s institutional location cities, functional urban areas, geographical regions, a group of cities with similar specialization etc.). Defining the boundaries of these strategies can be complex. In particular, FUAs can be Choices for each of these factors involve a risk assessment. problematic as they typically cross administrative boundaries. In this context, delineating FUA territory can be controversial and therefore involves risks such as politicization of the designation process and snow-balling of eligible territories for SUD strategies. Risk of EU funds fragmentation Key risks connected to the number and size of areas targeted by SUD instruments relate to the There can be significant pressures to extend the territory eligible for SUD funding as many political risk of EU funds fragmentation. In principle, the more urban areas are eligible for SUD funding, the actors want to have access to ring-fenced funding. Among countries that shared their FUA less funds will be available for each of them. Similarly, the bigger urban areas are (e.g. the number delimitation method, the Polish methodology seems to be most relevant for the Romanian context. First, it included an expert analysis of functional connections among main Polish cities, focusing on of municipalities in each functional urban area, further referred to as FUA), the less funding is everyday inhabitants’ mobility for work and education potentially available per capita or per municipality. Too much fragmentation of EU funding limits purposes. This allowed defining areas that share joint BOX 3:. Recommendations of how to mini- the added value of SUD investments, as it allows the implementation of a smaller number of challenges from the human-centered perspective. mize unfitted FUA delimitation risks projects in a high number of particular urban areas, instead of locating many investments in a Second, it allowed municipalities to suggest few territories that would establish a critical mass, make a significant change and achieve an amendments to the pre-defined FUAs, acknowledging It is recommended to use an expert analysis in important development impact. Furthermore, fragmentation and limited resources also have the combination with inputs from local actors for the that sometimes adding a few jurisdictions would potential to decrease the political significance of SUD instruments. Political support is necessary delimitation method for FUA territory. This approach be beneficial, in particular where inter-municipal provides an objective methodology for defining boundaries for the successful implementation of SUD instruments as integration of EU investments at the collaboration frameworks were already in place, while of FUA (expert analysis) and allows adjustments to the operational level requires collaboration of local leaders at different levels. some may not wish to be involved in collaboration local context (contextual analysis). This is likely to result in delineating FUAs that would be both evidence-based and with neighboring municipalities. For a more detailed politically acceptable politically. Member States approach the issue of fragmentation in a variety of manners. France, Portugal, account of the Polish SUD approach, see the case Italy and Spain have targeted SUD in more urban areas, each receiving a limited share of SUD study in Output 4. funding. This was done mostly due to pressures to invest in all or most cities in each country. Poland, Czech Republic, the Netherlands, UK, Finland targeted the SUD funds in a fewer urban areas. While with the last three countries this might have been attributable to low overall funding Risk of thematic irrelevance allocations, in Poland and Czech Republic, the decision was inspired by a desire to establish There is a broad scope of thematic objectives (TO) and investment priorities available for Cohesion critical mass. Overall, targeting a limited number of urban areas allowed higher budgets for Policy investments. Some countries limited the objectives available for SUD instruments, while each SUD strategy, stimulating synergy effects between investments, and, in several countries, other left the choice to regional and local actors. Usually, SUD strategies refer to 3-6 investment boosting urban development and regional impact. priorities and differ in their choice within each country. There is even a higher variety in terms of investment priorities, as in some countries SUD strategies make a selection among 40 different ones (Poland, Czech Republic). The thematic scope usually depends on the funding allocations, which is why Romania as one BOX 2:. Recommendations of how to minimize EU funds fragmentation risks of the biggest beneficiaries in the upcoming financial perspective would be expected to have a broad thematic variety of investments. A few member states set a specific minimum number It is recommended to limit the number of targeted urban areas in Romania, to ensure adequate impact of SUD funds. The of TOs to be included in SUD strategies (e.g. in Spain), in order to ensure integration of different selection of urban areas should be done based on the overall socio-economic impact the urban areas have on their respective regions and contribution to national economy. kinds of investments. Another recommendation is to have a manageable size for targeted territories, especially regarding the number of involved Limiting the number of objectives simplifies implementation and reduces the administrative municipalities. FUAs with too many potential beneficiaries could also stimulate fragmentation of EU funding. Consequently, burden on programme authorities. As such it reduces risks of delays in implementation. However, the decision on the size of each FUA should follow a relevant expertise of functional inter-relations (see next section) and should include the assessment of proportionality of available funding to the scope of problems that could be addressed with having a narrow thematic menu also creates risk. First, local authorities may not be able to such resources. This will avoid fragmentation of EU funding within a single territory, and will adjust the allocation of funds in invest in those areas that are most relevant to their area. Second, it can oblige urban authorities accordance to the financial and implementation capacity of beneficiaries. to adopt objectives that are not relevant for their local development challenges. In order to ensure a balanced division of EU funds that allow significant interventions, SUD budgets should be increased proportionally to the number and size of selected urban areas. This happened for example in Poland, where each region willing There are major differences between the challenges and needs of urban areas located in different to increase the number of urban areas targeted by the ITI tool, had a possibility to add funding from its regional operational regions, of different size and capacity, and with various socio-economic structures, in line with programme to be used for the additional SUD strategies. This allowed increasing the number of areas without increasing the the overarching place-based perspective of the SUD approach a one-size-fits-all solutions can be fragmentation of resources. considered less effective in terms of stimulating local development. 32 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECTS 33 SUD regulations allowed for a variety of ways in which the regulation could be implemented BOX 4:. Recommendations on how to minimize thematic irrelevance risks in Member States. In a small number of member states SUD was implemented partly through dedicated national OPs. However, in a majority of cases SUD requirements were implemented Considering the relatively large ESIF allocation that Romania receives, strategies would benefit from a broad menu through a dedicated priority axis at the national or regional level. It seems that placing SUD of thematic objectives and investment priorities. Following the place-based approach recommended by the European funding within national OPs limits the administrative burden, as it limits the number of Commission, SUD investments should be adjusted to the local context and based on the knowledge of local challenges, which should be defined by local actors. This will allow planning investments that will support urban development and institutions involved in funds management. However, it is important to highlight that it creates make a maximum use of SUD funds. It is also important to keep in mind however, the EU funds come with a number more physical and mental distance between fund managers and beneficiaries, which may lead to of hard strategic requirements (e.g. at least 35% of the ERDF has to go to interventions under Policy Objective 1. A Smarter Europe by Promoting Innovative and Smart Economic Transformation, and at least 30% of the ERDF have to be delays, complicate communication and lead to safe and repetitive investments that are not allocated for Policy Objective 2. A Greener, Low Carbon Europe by Promoting Clean and Fair Energy Transition, Green and Blue well-fitted to local contexts. At the same time, it is important to note that while sub-national Investment, the Circular Economy, Climate Adaptation and Risk Prevention and Management. administrations want to have a bigger say in the planning of the investments that directly benefit them, they are often less willing to assume the administrative burden required by the management of EU funds at the regional/local level. Risks related to territorial eligibility The type of challenges that SUD instruments are expected to address often exceeds the Furthermore, these delays and risks are further exacerbated by the extent of national level administrative boundaries. For this reason, the European Commission advises the development institutions duplication at the regional level. For instance, in smaller member states, national of strategies that target functional urban areas rather than single municipalities. In order to institutions are usually best placed to implement ESIF funds and as such OPs at the national ensure SUD operations are implemented in the whole FUA, it is necessary to allow all the level include a framework for SUD. In larger member states or those that are more decentralized, jurisdictions located in that FUA to access SUD funding; if only the main city is eligible, there regional OPs fulfil this function. is a risk that investments will only take into consideration the interests of the core cities, rather than follow a broader agglomeration perspective. At the same time dividing up SUD funding There was less variety in the placement of IBs involved in SUD implementation, as the European allocations between municipalities can have the negative impact of creating projects in isolation. Commission expected them to be situated at the local level. In most cases their tasks were delegated to existing or newly established sub-national institutions. They were sometimes in core Member states have resolved this issue in different cities (partially Poland, Spain and Portugal, Czech Republic, England), regional administration BOX 5:. Recommendations on how to ways: (partially Germany, Finland), or inter-municipal organizations (partially Poland, Spain and minimize unfitted territorial eligibility risks Portugal, France). • the core cities of each FUA took responsibility of SUD management, but all municipalities located in Locating SUD IBs at local level was controversial in several countries, as it creates some It is recommended that the approach to territorial eligibility FUAs were eligible to individually apply for funding; be coherent with the targeted area. Consequently, if SUD administrative burden due to more levels of administration involved in implementation, which instruments will be focusing on problems of neighborhoods, • municipalities were required to apply for potentially stimulates delays. However, local IBs have also been observed to increase the the institution eligible for funding should be the urban SUD funds linked in formal inter-municipal performance of SUD instruments, as they are closer to beneficiaries and may play a role in districts, if urban administrative scale is the main target – partnerships created around particular projects; stimulation and coordination of projects, organizing trainings, allowing higher quality of projects, the core cities should prepare relevant projects, and if SUD are supposed to address development issues across the • local authorities are required to establish formal and motivating beneficiaries to efficient absorption. functional urban area, those municipalities located in FUAs collaboration between jurisdictions in each should be eligible for funding, ideally for projects identified The ITI tool can in some cases lead to additional administrative burdens as it may require the FUA to be eligible for SUD funding – the new in a FUA-level strategy. Moreover, mechanisms leading to integration of their investments should be established (see collaborative body was often responsible for SUD creation of specific administrative procedures and additional regulations as well as increased collaboration risks section). implementation and all FUA’s municipalities were capacity building activities among authorities and beneficiaries so that they know how to manage eligible for funding. and use the new instrument. In other cases (e.g. the Netherlands) ITI is considered a mechanism that builds on existing practices and approaches and as such does not add any additional burden, which can be explained by earlier experience of local authorities in EU funds’ management. Risk of administrative burden and implementation delays. Furthermore, the learnings from other Member States in the 2014-20 period can provide lessons These risks are related to various aspects of SUD implementation: to avoid some of the associated risks in terms of increased administrative burdens. • designation of SUD funding; Many problems of urban areas not only cross administrative boundaries, but also often have • designation of SUD implementing bodies (IBs); complex nature and cannot be solved by a single kind of intervention. For this reason, many • the type of SUD instruments; countries decided to mix ESF with the required ERDF resources. This was possible only when ITI were chosen as an implementation instrument or when a multi-fund OP was used (the CLLD • the available funds for SUD investments; and tool allows this too, albeit, at a smaller scale). In other cases, ESF funds were allocated to SUD • the complexity of the operational implementation system. strategies without forming part of the ‘official’ ring-fenced funding. 34 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECTS 35 Linking investments from both funds adds administrative burden as usually the two are managed SUD strategies, projects animation, partial involvement in project selection and monitoring. by different organizational structures, which need to start collaborating and adjusting their Many countries used Technical Assistance funding to employ staff to ensure that IBs were able procedures to each other. From an inter-municipal perspective there are some risks linked to to cope with the additional burden. Additionally, in some countries (e.g. in Poland) TA funding a multi-fund approach as it requires local actors to engage with a different funding streams was also used to support local SUD coordinators, responsible for preparing relevant projects. with different intervention logics and implementation/management cultures. However, mixing the This approach motivated local authorities to delegate experienced staff to tasks related to SUD funds provides the opportunity of synergy effects between hard and soft investments. It seems implementation. The capacity of IBs was built through direct contact with Managing Authorities that in the Romanian context benefiting from such a synergy would be desirable due to complexity (especially useful if MA was at the regional level), trainings provided by national government, of socio-economic problems. Therefore, establishing informal links between the funds should be the and participating in networks of urban areas created by national authorities (e.g. in Spain), by priority (option with the lowest potential administrative burden), while full integration of ERDF non-government organizations of cities (e.g. in Poland) or by the European Commission (Urban and ESF should be considered in the context of the administrative burden risks. Innovative Actions, Urban Development Network, Cities In Article 7 (CIA 7) Implementation Network and International Urban Cooperation. Participation in the networks allowed exchange of information, peer-to-peer feedback and mutual support in preparing the institutional BOX 6:. Recommendations on how to minimize administrative burden and delays risks mechanisms for SUD implementation. Some countries (e.g. Poland) noted progress in capacity building among local IBs and extended their tasks during the process of implementation. The OP The recommendations regarding how to limit the risks of administrative burden and delays in implementation focus Administrative Capacity 2014-2020 will open a line of financing for the updating of Integrated on considering the main desired outcomes and added value of SUD instruments. Some solutions that may appear Urban Development Strategies, which will allow local administrations an early start for the 2021- problematic (ITI as implementation mechanism, IBs at local level, SUD funds in regional OPs, mixing ESF with ERDF), 2027 Programming Period. may bring substantial benefits and increase SUD performance. It should be considered how national guidelines and training for lower-level authorities could overcome the risks, allowing the expected added value. Crucially, the process of preparations for programming should be inaugurated by national authorities as soon as possible, which should In terms of the IBs for functional urban areas, there are additional administrative capacity motivate local authorities to prepare SUD strategies and planned collaborative mechanisms before the start of 2021- challenges as they need to pursue tasks associated with facilitating inter-municipal collaboration. 2027 financial perspective. These involve partnership brokering: promoting collective benefits, building trust among municipal representatives, moderating negotiations, consensus seeking, or even mitigating conflicts. Such tasks require strong inter-personal and other soft skills from IB staff, which are built over time as implementation progresses but should be supported by training in the beginning of the process. Below, more traditional tasks of IB related to SUD implementation are characterized. Operational implementation risks In terms of strategy preparation, it can be challenging for SUD IBs to have access to sufficient high -quality data at local level necessary to perform analysis of the challenges of the urban As far as operational elements of SUD implementation model are concerned, policy makers need area. This is particularly the case when it involves inter-municipal jurisdictions which may have to consider the following aspects: a variety of data gathering approaches. In a few cases, national or regional authorities (e.g. in • Division of tasks between MAs and IBs, Czech Republic and Portugal) assisted local actors by creating data observatories - institutions that are responsible for collecting information at the level of urban development following useful • SUD strategy preparation process, indicators. This approach had the added benefit in that it also supported the monitoring system. • Preferred project form, Additionally, in many countries the challenge of insufficient data was addressed by involving local stakeholders, e.g. universities, non-government organizations and consultancy companies, • Placement of SUD instruments in the national legal framework, which provided their knowledge and analytical expertise. This approach is in line with the new regulations connected to PO5, promoting the involvement of citizens and local actors in EU • Project selection modes, funds management. • Project selection criteria. There are also issues related to the capacity of municipal administrations, expected to be actively involved in SUD implementation as a part of the integrated approach to EU funds. In a few cases Risk of insufficient administrative capacity the recommended solution was to establish project partnerships among the municipalities, so SUD implementation can add additional administrative burden to the local level and increase the that they need to collaborate when preparing their projects. The rationale behind this was that need for additional capacity. Following the place-based approach to SUD development promoted a formal partnership would require coordination of investments, which was especially important by the European Commission, SUD instruments should involve local actors in programming and in functional urban areas. This solution has both positive and negative aspects. It demanded implementation. Local actors in most EU member states were typically not involved in EU funds regular meetings of municipal representatives planning similar investments, and stimulated management before the 2014-2020 programming period and creating local IBs faced capacity operational exchange of information, allowing the increase in the quality of prepared projects. risks. Consequently, the scope of tasks delegated to SUD IBs was usually limited to preparation of On the other hand, it added administrative burden, as formal partnership demanded additional 36 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS RISKS AND CONSTRAINTS ASSOCIATED WITH THE IMPLEMENTATION OF INTER-JURISDICTIONAL PROJECTS 37 procedures and paperwork. mechanisms that encourage strategic projects. In some cases the requirement of formal partnerships delayed funds absorption, as municipalities Cohesion Policy often uses the competitive mode, in which beneficiaries apply for funds in an had to wait for the readiness of all municipalities for f project preparation. This could create a open project call. This is often a preferred method of implementation as it: feeling of frustration among the municipalities that were ready to apply and start implementation • promotes transparency of the selection process, but that were held back by others. At the same time, the formal partnership did not guarantee the actual functional and strategic coordination and synergy effects of investments, as their day-to- • ensures equal access to funds for different kinds of beneficiaries (public, private, non- day functioning had more of an informal approach. governmental), and • speeds up absorption due to strict deadlines and increased competition. With regards to inter-jurisdictional project implementation, there is a host of distinct risks that make such projects more difficult, such as: political instability and a changing of political alliances; Some countries, however, decided to use non-competitive mode, in which investments that are cumbersome procedures for inter-jurisdictional planning and project implementation; difficulty to funded from SUD instruments are preselected by relevant authorities. This helps in the strategy get agreement on co-financing rates and administrative rights of individual local administrations. realization as it: Lastly, there are risks of misinterpretation of SUD instruments by local authorities, especially in • may adjust the investments to its crucial objectives, the context of incoherence between national law and newly implemented instruments. For these • allows preparing complex, more time- and resource-consuming projects, reasons, national authorities prepared specific national regulations and guidance to overcome these risks. On one hand, providing too detailed instructions for implementation may limit the benefits of • promotes coordination and synergy effects between investments by stimulating adjusting the instruments to the local context, but on the other, too much flexibility in the context information exchange about investment plans of particular municipalities, of low administrative capacity may create uncertainty and chaos, blocking the implementation • limits competition over funds between municipalities and provides more access to funding. process. Overall, providing a clear and balanced national framework is an important aspect of pre- programming preparations for SUD implementation. A non-competitive mode may appear as more likely to allow politicization of project selection if it gives direct power to politicians to decide the projects to be funded. However, research shows (e.g. Medve-Bálint, 2017; Bloom, Petrova, 2013) that in several Central-Eastern European countries BOX 7: Recommendations on how to minimize insufficient administrative capacity risks politicization of EU funds happens despite competitive mode of project selection. Therefore, preselection may – on the contrary - change the existing power relations in the project selection In order to address potential administrative capacity issues of local actors and ensure efficient SUD implementation, the following steps can be taken: process, making it formally dependent on local actors. Non-competitive project selection may also increase the political attractiveness of SUD instruments, as the funds would gain a perceived · provide intense training for authorities to be delegated IB tasks (e.g. procedural, legal, communication, partnership brokering, etc.); guarantee that raises the likelihood of fulfilling promises to voters. This potentially increases the importance of investments to be funded (the guarantee gives more time to prepare good-quality, · establish a national network of IBs allowing peer-to-peer learning; complex investments, and incentivizes investing in documentation which normally might have · invest Technical Assistance funding to support IB functioning of relevant number of staff; been unused if the project was not successful in an open call), and coordination between them · delegate important, but initially limited number of tasks to local IBs, which could be extended in the (no need to hide investment plans from other municipalities.). process of implementation; · establish a national observatory of urban development, which would support local authorities in preparing SUD strategies by collecting local data and providing relevant expertise; Another relevant element of SUD implementation system are project selection criteria. In most · do not force project partnerships, leaving the decision for beneficiaries and allowing adjustment of the countries (e.g. Poland) each urban area defined additional criteria assessing the coherence of project form to local context and needs, a project with the SUD strategy. This was supposed to ensure that projects funded from the · adjust SUD model to the national legal framework and guidelines to avoid inoperable mechanisms. instrument contribute to the agreed strategic objectives and assess the integrated character of investments. The latter was usually defined through the territorial and thematic complementarity between projects (see next section). The SUD-specific criteria were assessed by the IBs – either their employees or independent experts employed by them. Particular urban areas created Risk of selecting non-strategic inter-municipal projects their own additional criteria, e.g. points for non-municipal projects assessed as relevant for SUD strategy by a FUA association, in order to guarantee coordination between municipal and non- Project selection is a key stage of the implementation process. Within the context of inter- governmental investments. Otherwise, the projects (competitive and preselected) were assessed municipal cooperation there can be a risk that selected projects are not supporting strategic following the same formal and quality criteria used for other Cohesion Policy project calls. In some development of the urban area as a whole. This is particular the case in functional urban areas. Member States (e.g. Spain, Italy), integrated urban development strategies have been selected In order to ensure timely implementation, there can be drive towards selecting ‘easy’ projects following national and regional calls-for-proposals and competitions. rather than ‘harder’ strategic projects which take longer to develop and require a more intense partnership. Lessons from other member states show that there are several project selection 38 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS BOX 8:. Recommendations of how to minimize non-strategic inter-municipal projects risks The project selection mode depends on the chosen implementation instrument and the targeted territories. It seems that there are significant benefits in using a non-competitive mode in functional urban areas, as their added value is coordination of investments among neighboring municipalities, which can be strengthened by preselected projects as in an open call some of the agreed investments might not be selected. At the same time, informal mechanisms ensuring functional and strategic coordination among projects should be put in place, so that the complementarity between them and synergy effects are they highest. CONCLUSION CONCLUSION 41 In order to anchor successful inter-jurisdictional organizational models on the basis of which the ISUD strategies will nest, the following strategic requirements are recommended to shape the program design for the 2021-2027 Programming period: Clear and focused criteria for eligible territories and projects – there is evidence that urban areas are at the core of regional and national economic growth. As such SUD targeted areas should be informed by national and regional level analysis to better understand their role in contributing to national economic growth. This should be complemented by local-level analysis to better understand the investment necessary to unlock nascent growth. Further, because urban challenges and solutions do not confine themselves to defined administrative and sectoral lines, there is a need to embed an integrated approach, especially in the design of fiscal instruments. National-level analysis to define eligible territories will be further enhanced by the on-going development of a National Urban Policy. Integrated territorial plans supported by a dedicated operational programme - integrated territorial plans at the scale of the identified impact area (i.e. FUA, metropolitan, city, etc.) should be the basis on which investment decisions are made, taking into account the integrated nature of challenges to be addressed. These strategies and plans should also embed in them measures to improve absorption of funds as well as clear monitoring and evaluation mechanisms. This in turn should be supported by a move from only competitive resource allocation and provide for more funds being pre-allocated especially to complex, large scale inter-jurisdictional projects emanating from an evidence-based planning process. To this end, it is recommended that a dedicated operational programme should be considered. This will, amongst others, enable proper targeting of financial resources and more importantly, reduce the uncertainty and administrative burden faced by local administrations currently. Decentralization should be considered as evidence shows that well-capacitated local administrators have a much closer relationship with ultimate beneficiaries. To this end consideration should be given to Regional Operational Programme supported by a variety of instruments and delivery mechanism such as ITI, CLLDs, IBs etc. 42 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS Citizen engagement should be at the center of strategy development and implementation. This has the dual benefit of enhancing the quality of projects and their implementation and of building and strengthening civic society capacity, thus contributing to enhancement of broader human capacity. To enable this, citizen participation should be designed into strategy formulation and implementation by looking at various models to increase participation and making the necessary legal and financial adjustments to support this. In order to mitigate contextual, implementation and coordination risks, mitigation measures are recommended, some of these are: Expanding the menu of eligible thematic areas, in the 2014-2020 SUD implementation, Romania had significantly less eligible thematic areas, especially considering the financial allocations made. In the next programing period, this menu should be expanded to cater for a more varied project profile. ANNEXES Greater flexibility – administrative burdens imposed by overly complex and centralized decision- making processes may have contributed to lackluster funds absorption. In the next programing period, there should be greater flexibility in matching eligible institutions to financial support in response to identified challenges. For instance, if the urban development challenge being addressed is declining CBDs, then eligible administrations can be urban districts. Capacity building should be a defining feature of SUD implementation in the 2021-2027 Programming Period informed from lessons gleaned in the 2014-2020 period in Romania and other member states. The departure point for this should be reinforcing existing institutions (such as the Regional Agencies) that have proven their worth and clearly define their mandate and make dedicated resources available. This capacity building should extend to support implementation such as the development of urban observatories that collect and collate data, the creation of IB networks and delivery of technical training to support project execution. 44 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 45 ANNEX 1. Enabling conditions FULFILMENT CRITERIA FOR THE NOTES + OFFICERS (Ministry of Strategic requirements Romania has to meet for the Specific objective Romanian relevant ENABLING CONDITION European Funds (MEF) and Line Ministries) 2021-2027 Programming Period authority (COMPROMISE 13 FEBRUARY 2019) MEMO – APPROVED IN THE GOVERNMENT MEETING DATED APRIL 1, CURRENT YEAR Measures taken: C1. A national long-term renovation strategy The drafting of the National long-term renovation Enabling conditions FULFILMENT CRITERIA FOR THE to support renovation of the national stock Specific objective NOTES + OFFICERS (Ministry of of residential and non-residential buildings is strategy to support renovation of the national ENABLING CONDITION European Funds (MEF) and Line Strategic policy stock of residential and non-residential buildings – Romanian relevant framework to adopted, in line with the requirements of the authority (COMPROMISE 13 FEBRUARY 2019) Ministries) Directive 2010/31/EU on the energy performance MRDPA, QUARTER IV 2019 support energy Strategy for mobilising investments in the renovation efficiency of buildings, which: Smart specialisation strategy(ies) will be supported by: of residential and commercial buildings existing at renovation of a. entails indicative milestones for 2030 and national level, both public and private (V2 in place) C1. Up-to-date analysis of bottlenecks for residential and 2040, as well as targets for 2050 - revised as per Directive 2010/31/EU art 2a - innovation diffusion, including digitalisation non-residential AMENDED BY Reg. (EU) 2018/1999, including b. provides an indicative outline of C1 - Analysis of bottlenecks for innovation diffusion, buildings indicative milestones for 2030 and 2040, as well as budgetary resources to support the including digitisation (ACOP project result - PR1 / MEMO – APPROVED IN THE GOVERNMENT targets for 2050 implementation of the strategy A3.1 and PR2 / A5.1) - Quarter IV 2019 MEETING DATED MARCH 8, 2019 MINISTRY OF 2 REGIONAL c. defines effective mechanisms for TA C2. Existence of a competent regional/ DEVELOPMENT promoting investments in building ACOP– beneficiary: MRDPA “Strengthening the national institution or body, responsible for AND PUBLIC renovation strategic planning capacity of the Ministry of Regional Measures taken: the management of the smart specialisation ADMINISTRATION Development and Public Administration for the Good governance strategy renovation of the national stock of buildings from the Drafting of the Regional smart specialisation (MRDPA) 1. Strategy completion Quarter IV 2019 of national or C2 – A ministerial order setting up a Smart perspective of energy efficiency and seismic risk” (RAS regional smart strategies 2021-2027 (RIS) – RDAs, QUARTER 2. Strategy approval Quarter I 2020 World Bank) Specialisation Coordination Committee (SSCC) ERDF and Cohesion specialisation composed of MRI, MEF, MRDPA, RDAs, MEc., II 2020 Fund: C2. Energy efficiency improvement measures to DWD officers: Adrian Barbu, Adrian Margarit strategy Ministry of Business Environment, Commerce 2.1 Promoting achieve required energy savings Authority officers and Entrepreneurship (MBECE), Executive Unit Drafting of the National smart specialisation energy efficiency Further clarifications from COM are necessary MINISTRY OF for the Financing of Higher Education, Research, strategy (NSSS) for the period 2021-2027 – · ACOP Project: measures regarding the types of envisaged measures, as well RESEARCH AND Development and Innovation (UEFISCDI), approved MRI, QUARTER II 2020 · Conditionality: INNOVATION (MRI) by Order of the Minister of the MRI – MRI Order no. as the procedure for reporting/combining the energy 458/31.07.2019 – completed savings made Anca Ginavar, Director of the Technical Department MINISTRY OF Carmen Iliescu, Chief of the Building Regulation C3. Monitoring and evaluation tools to measure TA REGIONAL Office performance towards the objectives of the ACOP– beneficiary - MRI in partnership with DEVELOPMENT Ana Catruna, Counsellor strategy UEFISCDI: Increasing the capacity of the RDI AND PUBLIC system to meet global challenges, strengthening C3 – Methodology and tools - ACOP project results - Achieved potential – to be analysed ADMINISTRATION the anticipatory capacity for evidence-based PR2 / A5.5, endorsed by (SSCC) - QUARTER II 2020 (MRDPA) public policy making. 1 The Integrated National Energy and Climate C4. Effective functioning of entrepreneurial Regional Change Plan (PNIESC) has been transmitted to discovery process ACOP- beneficiary MEc Development COM in Dec 2018; PNIESC must be validated C4 - methodology of the entrepreneurial discovery “Increasing the administrative capacity of the Agencies (RDAs) Governance in the by COM by Dec. 2019 (see (EU) Regulation process at national level (quarter II 2019) and Ministry of Economy to monitor, assess ad Setting the Updating Schedule for NSSS (National energy sector 2018/1999). The drafting of the Integrated coordinate economic competitiveness-related public European Regional Smart Specialisation Strategy) (quarter I 2020), National Energy and Climate Change Plan policies” Development Fund ACOP project result - PR2 / A5.5 MINISTRY OF (PNIESC) is based on Romania’s Energy Strategy (ERDF) ENERGY (ME) National Energy and Climate Plans are adopted that project 2019-2030, with an outlook to 2050. SRSP – beneficiary MRDPA-MAROP All the specific C5. Actions necessary to improve national or Support the Romanian MAROP and RDAs in the include: objectives within regional research and innovation systems, if ERDF and Cohesion C1. All elements required by the template in 18.06.2019 C (2019) 4423 final version context of enabling condition dedicated to smart this policy applicable Fund: Annex I of the Regulation on Governance of the RECOMMANDATION OF THE COMMISSION specialization (proposal under discussion) objective C5 - Definition/setting of the main actions for the 2.1 Promoting Energy Union  on Romania’s integrated national energy (A smarter Europe by improvement of the national or regional research and 3 and climate plan – to follow the report DWD officers: Mirela Dobre, Aneta Stoica, energy efficiency promoting innovative innovation systems, in collaboration with the RDAs Bogdana Toader measures C2. An indicative outline of envisaged financing of the ME required through MEF letter and smart economic (ACOP project result - PR2 / A5.3) - QUARTER II resources and mechanisms for the measures no.759/23.07.2019 transformation) 2020 Authority officers 2.2 Promoting promoting low-carbon energy renewable At the level of the Ministry of Energy (ME), C6. Actions to manage industrial transition, if · ACOP Project: Adrian Curaj General a Work Group (WG) has been set up to energy through applicable implement the Integrated National Energy Director UEFSCIDI investment in C6 - Definition/setting of the main actions for a and Climate Change Plan (PNIESC) – MFE successful management of industrial transition · Conditionality: Daniela GHEORGHIAN the generation RDI Programme Policies Directorate capacity observer (MEc - ACOP project result) - Quarter IV 2019 DWD officers: Adrian Margarit, Adrian Barbu C7. Measures for international collaboration Definition/setting of main actions to support Authority officers international collaboration (ACOP project result – · Conditionality: Elena Popescu PR1, PR2/A5.3) Quarter IV 2019 Director 46 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 47 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) Efficient promotion Analysis of the need of a MEMO / assumption of the use of of responsibilities C2. a description of the disaster prevention, renewable energy · The mandatory national renewable energy preparedness and response measures to address the in all sectors target for 2020 has been reached since identified key risks. The measures will be prioritized across the entire The assessment of the 6 multi-risk scenarios will 2014. The energy strategy 2019-2030 in proportion to the risks and their economic EU be performed within the project “Enhancing the The existence of measures that ensure: includes renewable energy objectives impact, the capacity gaps, the effectiveness disaster risk management” financed on the basis of · Measures to increase the share of renewable and efficiency thereof, while considering possible a loan agreement concluded with the World Bank, MINISTRY OF C1 compliance with the 2020 national binding energy used in the heating and cooling alternatives within component 2 – Strengthening the institutional ENERGY (ME) renewable energy targets and with this baseline capacity to plan risk reduction investments. sector will be set forth by the MRDPA in Assessment integration and description of the up to 2030 in accordance with the recast cooperation with ME prevention, preparedness and response measures for MINISTRY OF version of the Directive 2009/28/EC REGIONAL the following types of risk: landslides, earthquakes, TA - follow the report of the ME required through ACOP– beneficiary: MEn – “Strengthening the 4 DEVELOPMENT floods, forest fires, drought, industrial accidents C2 In accordance with the requirements of the MEF letter no.759/23.07.2019 capacity of the central public authorities in the field AND PUBLIC involving hazardous substances, nuclear and Directive 2018/2001/EC] and Regulation No. TA radiological accidents, transportation accidents of water management to implement the long- and ADMINISTRATION 2018/1999 on the Governance of the Energy 5 (MRDPA) ACOP– beneficiary ME “Improvement of the involving hazardous substances, epidemics, zoonoses mid-term National Flood Risk Management Strategy” Union and Climate Action, an increase of the administrative capacity of the ME to coordinate the and epizootics. In case of catastrophes the main share of renewable energy in the heating and DWD officers: Alin Mihai, Roxana Lepadatu, ERDF and Cohesion process of aligning the national legislation with the risks identified will be approached. GIES cooling sector in line with in Article 23 of the Oana Zet, Mariana Svestun Fund: European laws in the energy sector” D: October 2021 Directive 2018/2001/EC] Authority officers 2.2 Promoting renewable DWD officers: Adrian Barbu, Adrian Margarit · ACOP Project: C3. information on budgetary and financing energy through resources and mechanisms available for covering Authority officers · Conditionality: Marian Daniel DRAGNE investments in the operation and maintenance costs related to the generation · ACOP Project: Conditionality: Elena prevention, preparedness and response First Deputy of the General Inspector of GIES capacity Popescu Director and Colonel Cristian RADU, Head of the Integration report on financing mechanisms, policies, programmes, resources available for National Operational Centre covering the prevention, preparedness and response actions, by types of risk., GIES November 2021 MEMO – APPROVED IN THE GOVERNMENT MEETING DATED MAY 2019 For each of or in both sectors, the existence of a Efficient disaster Main measures taken: national investment plan is that includes: risk management The existence of a national or regional disaster risk · Drafting of the national disaster risk C1. an assessment of the current state of framework management plan, consistent with the management plan, consistent with the existing implementation of the Urban Wastewater climate adaptation strategies that includes: existing climate adaptation strategies, MIA / MINISTRY OF GIES D: December 2021 Updated planning Treatment Directive (UWWTD) 91/271/EEC and INTERNAL for the necessary of the Drinking Water Directive (DWD) 98/83/ C1. a description of key risks, assessed in · Updating of the National Climate Change AFFAIRS investments in EC accordance with the provisions of Article 6 (a) Strategy for the period 2016-2020 and of (GENERAL the National Action Plan for the perspective the water and A detailed initial analysis of the current rate of of Decision No. 1313/2013/EU, reflecting current wastewater sector connection to the sewage and treatment systems in INSPECTORATE of the year 2027, MEn and long-term threats (25-35 years). will For each agglomeration in each county, as well as of the FOR EMERGENCY climate related risks, the assessment will build D: July 2020 MINISTRY OF current state of connection to the drinking water MEMO – APPROVED IN THE GOVERNMENT SITUATIONS - on climate change projections and scenarios For the drafting of the national disaster risk MEETING DATED AUGUST 8, 2019 GIES) WATERS AND supply systems in each county has been conducted 5 The multi-risk assessment will be based on a management plan, the Ministry of Internal (Memo no. 20/12968/TG/26.07.2019) Affairs / General Inspectorate for Emergency FORESTS (MWF) as per the Service Contract concluded between national unitary risk assessment methodology and the Ministry of European Funds and the European MINISTRY OF THE Situations cooperate with the relevant on the contributions of the national authorities 6 MINISTRY OF Bank for Reconstruction and Development. The DWD officers: Mariana Svestun, Valentina ENVIRONMENT authorities (Ministry of Regional Development having different types of risk management REGIONAL assessment of the current state of implementation Niculae, Roxana Lepadatu, Oana Zet (MEn) and Public Administration, Ministry of Waters responsibilities. This assessment consists of and Forests, Ministry of Agriculture and Rural DEVELOPMENT of the Urban Wastewater Treatment Directive and 6 scenarios: earthquake + flood (dam break), Development, Ministry of Transportation, AND PUBLIC of the Drinking Water Directive will be completed Authority officers ERDF and Cohesion earthquake + accident, earthquake + nuclear Ministry of Economy, Ministry of Environment, ADMINISTRATION on the basis of the analysis conducted by EBRD. Fund: · Conditionality: Gheorghe Constantin, Director accident, drought + forest fire, landslides + flood, Ministry of Health, National Commission for the (MRDPA) For the case of the wastewater, the action will be 2.4 Promoting earthquake + flood + industrial accident. Control of Nuclear Activities (CNCAN), National climate change carried out by the World Bank as part of a technical The drafting of the national risk assessment report. Sanitary Veterinary and Food Safety Authority adaptation, risk (ANSVSA), the authorities responsible for the ERDF and Cohesion assistance project (financed by ACOP), whose GIES D: October 2021 Fund: beneficiary is the Ministry of Waters and Forests. prevention and drafting of the documents and transmission of disaster resilience the contributions, in line with the responsibilities 2.5. Promoting For the case of the drinking water, the action will be set forth through Government Decision no. water efficiency carried out by the Ministry of Health, the Ministry 557/2016 on the management of different of Waters and Forests, the Ministry of Regional types of risk. Development and Public Administration, on the basis of the analysis conducted by the European Bank for Reconstruction and Development. D: March 2020 48 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 49 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) C4. An indication of the potential sources of public financing, when needed to complement user charges The financing arrangements for the water/ C2. The identification and planning of any public wastewater sector will be included in the Report on investments, including an indicative financial the strategic options for the water and wastewater estimation sector, drafted by EBRD within the project developed a. required to achieve compliance with the by the Ministry of European Funds. D: October 2019 UWWTD, including a prioritization from the Within the project of the MWF in cooperation with perspective of the size of agglomerations and the 6 the World Bank, a Strategic Financing Plan will environmental impact, with investments broken be drafted for the investments required to face down for each wastewater agglomeration D: the challenges under the wastewater Directive. march 2020 Subsequently, this Plan will be approved by GD. D: b. required to implement the DWD Directive MARCH 2020 (98/83/EC) on drinking water The strategic financing plan for the compliance with A first identification of all the investments the requirements of the drinking water Directive will necessary to achieve compliance with the be elaborated by MWF, MRDPA, MH and it will be Wastewater Directive and the Drinking Water approved by GD. D: MARCH 2020 Directive has been performed within the project of the Ministry of European Funds in cooperation The existence of waste management plan(s) in with EBRD. The estimated investment accordance with Article 28 of Directive 2008/98/EC requirement (on November 30, 2018) is 13.2 billion as amended by Directive EU 2018/xxxx that cover EUR for wastewater and 9 billion EUR for drinking the entire territory of the Member State and include: water. The final identification and planning of all public C1. an analysis of the current waste management investments and the final financial estimate situation in the geographical entity concerned, for the compliance with the Wastewater including the type, quantity and source of the generated waste and an evaluation of their future Directive and the Drinking Water Directive will evolution considering the expected impacts be performed within the project of MWF in of measures set out in the Waste Prevention cooperation with World Bank for wastewater and Programme(s) developed in accordance with Article by MWF, MRDPA, MH for drinking water. 29 of Directive 2008/98/EC as amended by 6 c. required to match the needs stemming from Directive 2018/xx/EU the proposed recast [COM (2017)753 final], regarding in particular the revised quality Updated waste C2. an assessment of existing waste collection parameters detailed in Annex I management plan schemes, including the material and territorial A new drinking water Directive is currently being coverage of separate collection and the measures MEMO – APPROVED IN THE GOVERNMENT negotiated at a European level. Consequently, this MINISTRY OF THE taken to improve its operation, as well as the MEETING DATED MAY 23, 2019 criterion will be completed after the conclusion of ENVIRONMENT need for new collection schemes negotiations. DWD officers: Iulia Gugiu, Oana Zet, Roxana ERDF and Cohesion C3. an investment gap assessment justifying Lepadatu C3. An estimate of the investments needed to 7 Fund: the need for additional or upgraded waste renew the existing wastewater and water supply 2.6 Developing infrastructure, with information on the sources Authority officers infrastructure, the networks included, based on the (Transition of revenues available to cover the operation and to) circular maintenance costs · ACOP Project: their age and depreciation plans A first estimate of the investments needed to economy, through · Conditionality: Flavius ARDELEAN – renew the existing infrastructure at the level of the investment in the C1, C2 and C3 director waste sector and The National Waste Management Plan (PNGD) was regional operator has been performed through the resource efficiency approved by Government Decision no. 942/2017. project EBRD PISSA. Thus, the financial requirement The National Waste Management Plan covers the to renew the infrastructure in this sector by 2035 entire national territory and complies with Article amounts to 2.4 billion EUR (ISPA - 300 million EUR, 28 of Directive 2008/98/EC and its measures cover EUR POS ENV - 700 million, EUR POIM 1.4 million). the period 2018-2025. The final identification and planning of the public For the period 2025-2027, the National Waste investments and the financial estimate for the Management Plan will be updated on the basis of renewal of the existing wastewater and water the technical assistance offered by the European supply infrastructure, including the networks, Investment Bank within a project financed through based on their age and depreciation plans will be LIOP, aiming at strengthening the institutional performed by MWF, MRDPA, MH. capacity of the Ministry of Environment in the field D: October 2019 of waste management (to support implementation of the National Waste Management Plan). D: JUNE 2025 (During the discussions with COM, The Ministry of Environment claimed that the National Waste Management Plan must be updated by the end of 2020.) 50 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 51 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) A national or regional broadband plan is in place MEMO – APPROVED IN THE GOVERNMENT MEETING DATED MAY 13 2019 which includes: C4. information on the location criteria for site Main measures taken: identification and on the capacity of future C1. an assessment of the investment gap that Elaboration of the National Broadband Investment waste treatment installations needs to be addressed to reach the EU Gigabit Plan 2021-2027 The National Waste Management Plan shows the connectivity objectives, based on: new estimated investments at the level of the TA · a recent mapping of the existing private and ACOP project – beneficiary MCIS “Setting forth county/Bucharest. public infrastructure and quality of services the reference framework for the broadband network The methodological framework for the elaboration using standard broadband mapping indicators deployment in Romania” - submitted – Dec.2018 of county waste management plans was drafted (by MCIS is implementing a grant scheme to develop Technical Assistance) and approved by Order of the · consultation on the planned investments the broadband NGA/NGN network and it cannot Minister (no. 140 / 14.02.2019). The County Waste start an analysis leading to the fulfilment of D: DECEMBER 2019 Management Plan (PJGD) will give details on the the enabling condition criteria unless the grant - ANCOM elaborates the mapping methodology investments at a county level. D: OCTOBER 17, 2019 awarding is completed; (May 2019) and performs and administrative mapping ("prerequisite level" approach agreed upon ACOP project – beneficiary MCIS “Integrated The elaboration of the PJGD has the following with the COM representatives); D: MAY 2019 management system for an efficient information status: - public consultation to identify the market failures society” with a view to obtaining external · 2 counties in SEA procedure (Cluj and D: NOVEMBER 2019 expertise for the analysis of the opportunity or Prahova); existence of one or more Broadband Competence National or C2. the justification of planned public Offices (BCO) and in the case of a positive · 9 counties in the elaboration phase (Bistrița regional broadband intervention on the basis of sustainable result, to clearly setting forth the organisation Năsăud, Caraș Severin, Covasna, Dolj, Ilfov, plan and mandate of the BCO or of the BCO network. investment models that: Neamț, Sălaj, Sibiu, Vrancea); Letter no. 364/MVT/21.06.2019 to DG Regio · enhance affordability and access to open, transmitted updated information about the MINISTRY OF · 5 counties in the procurement phase for the quality and future-proof infrastructure and broadband mapping methodology that has COMMUNICATION been assumed by ANCOM for 2019. The elaboration (Bacău, Hunedoara, Iași, Satu AND INFORMATION services Mare, Suceava); updated information proposed by ANCOM, SOCIETY · adjust the forms of financial assistance to the according to art. 22 of the European Code for · 15 counties preparing the tender book for the (MCIS) identified market failures Electronic Communication, which takes into procurement of the elaboration service for the consideration granularity at administrative National Authority · allow for a complementary use of different number (prerequisite level) on the basis of the 7 County Waste Management Plan (Alba, Bihor, 8 for Management forms of financing from EU, national or information provided by ANCPI. No answer has Botoșani, Brașov, Buzău, Călărași, Dâmbovița, been received to this letter so far (august). Galați, Gorj, Ialomița, Mureș, Olt, Timiș, Vâlcea, and Regulation in regional sources As for the enabling condition “National or Vaslui); Communications MCIS has developed certain investment models regional broadband plan”, on July 3 2019, during (ANCOM) a meeting with COM, MCIS mentioned that the and it identifies complementary financing sources · 9 counties where no procedure was initiated investment deficit will be identified at the end of (grants, state budget) and priority investments (Arad, Argeș, Brăila, Constanța, Giuirgiu, European Regional 2019 (on the basis of the information received 2021-2027 T: OCTOBER 2020 Harghita, Maramureș, Teleorman, Tulcea); Development Fund from ANCOM), while the investment models will C3. measures to support demand and use of (ERDF) be completed during the first part of 2020will . · Bucharest - The Waste Management Plan for very high capacity networks, including actions to 3.1 Enhancing · Seeing that the National Broadband Plan will be Bucharest was elaborated before the approval facilitate their roll-out, in particular through the digital connectivity elaborated within an ESF-financed project as of the National Waste Management Plan; effective implementation of the EU Broadband Cost-Reduction Directive a public policy, it will include a series of result therefore, it must be updated and it must MCIS sets forth the measures to support demand indicators based on the ANCOM mapping, undergo the SEA procedure. more precisely broadband mapping indicators. and use of the network and approves them by Order JASPERS will offer support and guidance for the of the Minister or GD (depending on the measure · The MCIS solution to avoid difficulties such as elaboration of the County Waste Management Plan those within the Ro-Net project, is to “break” implementation method) (on the basis of the Order-approved Methodology) the project into several little projects that D: JUNE 2020 are easier to manage and for which the for counties that will apply for financing through construction permits will be issued easier. POIM. The first 3 County Waste Management C4. technical assistance mechanisms, including Plans (Bistriţa, Sibiu, Ilfov) have been transmitted · MCIS also stated that the Ro-Net Broadband Competence Offices to reinforce the implementation duration was 1 year, while and analysed by JASPERS and they all kept into capacity of local stakeholders and advise project for the national or regional broadband account the new targets on the circular economy promoters plan it will be different, meaning that it stated in the Methodology for the drafting of the MCIS decides on the possibility to have a Broadband will last less. County Waste Management Plan. Competence Office (BCO) following the analysis Moreover, a new study will be conducted in 32 performed by the ACOP project D: JUNE 2020 DWD officers: Paula Tapalaga, Mirela Dobre, counties by November through PASSA BEI. It will carmen Tumirica, Adrian Margarit allow identifying the infrastructure investments C5. a monitoring mechanism based on standard that are required to meet the objectives of the new broadband mapping indicators Authority officers Directive. MCIS sets forth the monitoring mechanism using · ACOP Project: the National Broadband Investment Plan; This Plan · Conditionality: Mihaela Dumitrache will be approved by GD D: NOVEMBER 2020 Director 52 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 53 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) The existence of multimodal mapping of the existing C5. if applicable, reports the implementation and planned (until 2030) infrastructures that: of the ERTMS in accordance with the EU Commission implementation Regulation 2017/6 C1. includes an economic justification of the of January 5, 2017, related to the ERTMS planned investments, underpinned by a robust demand analysis and traffic modelling, which implementation plan. should take into account the anticipated impact The investment objectives in the railway sector of rail liberalisation include the equipping with ERTMS 2. All projects aiming at modernising the railway infrastructure The Ministry of Transportation has elaborated the financed through POIM and CEF within the current General Transport Master Plan (MPGT), approved programming period include the equipping with by GD no. 666 / 2016, representing the plan of ERTMS 2 FULFILLED strategic development of the transportation sector for the following 15-20 years for all modes C6. promotes multimodality, by identifying the of transportation (roads, inland waterways, air, multimodal). need for multimodal or transhipment terminals The projects have been classified on the basis of the within the framework of freight and passenger information related to the internal rate of return transport, as well as the need for active modes of the projects, the study of the affiliation to the of transport Comprehensive main/comprehensive TEN-T and the impact on the PGT covers all modes of transport: roads, railways, transport planning NATURA 2000 sites. inland waterways, air, multimodal. MPGT has at the appropriate The General Transport Master Plan will be planned the public network of freight transport level revised in order to meet the requirements. terminals in order to have non-discriminatory access Officer: MT D: QUARTER IV 2019 to the logistics operators, integrators of railway- MINISTRY OF C2. reflects the air quality plans, primarily taking road services and railway-inland waterway services, TRANSPORTATION into account the national decarbonisation plans by taking into account the current freight flows. (MT) The Integrated National Energy and Climate Change The analysis considered: the connectivity with other MEMO – APPROVED IN THE GOVERNMENT modes, the geographical distribution of entry points Plan 2021-2030 has been notified to the EC in December 2018. The Operational Objective no. 9 - MEETING DATED MAY 14, 2019 in Romania for the transport of freight (harbours) MINISTRY OF “Increasing energy efficiency” included measures for and the population centres, the existing railway and REGIONAL DWD officers: Mariana Svestun, Adrian the transportation sector that will be implemented road networks, the current and future traffic flows, DEVELOPMENT within the 2021-2030 period. Margarit AND PUBLIC the coverage area of freight trucks. Deadline for completion: December 31, 2019. This will 9 ADMINISTRATION 9 The criterion has been FULFILLED. Officer: MT be approved by the Government through a legal act. Authority officers (MRDPA) The measures will be implemented by the relevant bodies. · ACOP Project: C7. includes measures aiming at promoting MINISTRY OF THE Officer: ME, MEn, MT D: QUARTER II 2020 alternative fuels, in line with the relevant · Conditionality: Ion Iordăchescu, State ENVIRONMENT national policy frameworks Secretary; Cătălin Costache, General (MEn) C3. includes the investments in core TEN-T Promoting alternative fuels through the national Manager OIT network corridors, such as defined by Regulation strategy has involved energy-related institutions. ME, (EU) no. 1316/2013, in line with the respective together with MT are analysing the measures needed ERDF and Cohesion TEN-T work plans Fund: to establish a national alternative fuel strategy. The main priority criterion of the scenarios analysed 3.2 Developing Officer: ME, MT D: QUARTER IV 2019 in PGT is the affiliation to the main/comprehensive a sustainable, TEN-T (30% of the weight) - as defined in the EU climate resilient, Regulation 1315/2013 and 1316/2013, followed by C8. includes an assessment of road safety risks intelligent, secure economic durability (70% of the weight). in line with the existing national road safety and intermodal The criterion has been fulfilled. Officer: MT strategies, accompanied by a mapping of the TEN-T network FULFILLED affected roads and sections and a prioritisation of the corresponding investments C4. ensures complementarity for any One of the horizontal objectives of the MPGT is road investments outside the core TEN-T, by ensuring safety. Thus, the technical status of the national sufficient connectivity of the regions and local road network and the future trends of traffic flows communities to the core TEN-T and its nodes The PGT contains the national transport model that are analysed, taking specific measures to reduce covers the main and complex TEN-T, as well as the the road traffic accident rate by 50% by 2020 - connections with TEN-T, ensuring integration of the allegedly at national level. transportation modes and their interoperability. An assessment of road safety risks, in line with The regional connectivity will be ensured by the existing national road safety strategies, was connecting the primary network with the secondary performed in 2016., It aimed at aggregating all and tertiary networks. the actions and priority actions proposed by the For the regional transport infrastructure, the National Road Safety Strategy with the objectives MRDPA (supported by the Regional Development and interventions proposed by PGT and POIM. Agencies and the County Councils) analyses the connectivity with the secondary network and sends A review of the road safety target by 2027, as well the results to the MT. as the appropriate measures in the PGT. Officer: MRDPA, MT D: QUARTER IV 2019 Officer: MT D: QUARTER IV 2019 54 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 55 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) 9C. provides information on budgetary and C5. for youth employment interventions, financing resources corresponding to the planned evidence-based and targeted pathways towards investments and required to cover the operation unemployed young people who don’t attend any and maintenance costs of the existing and education or training program, including outreach planned infrastructures measures based on actual data and quality Budgets are currently allocated to the transport requirements that take into account criteria for 9 infrastructure on an annual basis, in line with the apprenticeships and quality traineeships, even current legislation There are multi-annual budgets in the context of Youth Guarantee schemes for the performance contracts, account being taken of the continuity of investments. The PGT implementation investments are reviewed by taking into account the 10 The legislative package (Law no. 76/2002 and achieved progress. GD no. 174/2002) has been modified to include Officer: MT D: QUARTER IV 2019 NEETs as a vulnerable group. Moreover, the Apprenticeship Law and Law no. 335/2013 The existence of a strategic policy framework for concerning the performance of internship by the active labour market policies that reflects higher education graduates also apply to NEETs. Strategic policy employment trends and includes: Projects such as INTESPO (financed through framework for POCU) aim at the identification, profiling and active labour C1. arrangements to conduct jobseekers’ profiling counselling of the NEETs, but also at the market policies and the assessment of their needs, including MEMO – APPROVED IN THE GOVERNMENT stimulation of employment among NEETs. entrepreneurial pathways MEETING DATED DECEMBER 18, 2018 MINISTRY OF The procedure used to establish the profile of The existence of a national strategic policy LABOUR AND unemployed persons registered with PES was Measures taken: National strategic framework for gender equality that includes: SOCIAL JUSTICE adopted by the PES President, no. 11/2011. Drafting of the strategic employment framework for C1. evidence-based identification of challenges to (MLSJ) guidelines after 2020 is based on the studies gender equality C2. information on job vacancies and conducted under the Sectoral Research and gender equality Development of a diagnosing analysis including a employment opportunities while taking into Development Plan of MLSJ 2018-2020 D: precise evidence-based identification of challenges European Regional account the needs of the labour market DECEMBER 2019 MINISTRY OF related to gender equality D: SEPTEMBER 2019 Development Fund The design and implementation of new services LABOUR AND - The deliverables related to the activities within this (ERDF) / tools focusing on labour mediation services, a) Social-economic analysis of employment SOCIAL JUSTICE Project have been transmitted to MLSJ in its capacity of MEMO – APPROVED IN THE GOVERNMENT 4.1. Enhancing the integrated into a job offer dedicated to the 2014-2020 D: DECEMBER 2019 (MLSJ) Partner and to the Project Manager MEETING DATED DECEMBER 18, 2018 effectiveness of employers’ needs will be achieved through a POCU R2.1. “Research report - Assessment of the degree Measures taken: labour markets project of achievement of the objectives of the National National Agency for C2. measures to address gender disparities in Elaboration of the National Strategy for social and the access employment strategy 2014-2020” and R.2.2. Equality of Chances employment, pay and pensions, and promote the C3. arrangements to ensure that its design, inclusion and equality of chances after 2020 to quality “Research Report - Assessment of the impact of the between Women and work-life balance, through an improved access implementation, monitoring and review are D: MARCH 2020 employment trough employment policies as of 2014 and perspectives Men to early childhood education and care and other conducted in close cooperation with the relevant TA the development of until 2020 aiming at reaching the employment ways, while defining target-values stakeholders European Regional infrastructure. target set forth within the Europe 2020 Strategy” – Elaboration of an action plan that will also include ACOP– beneficiary: MLSJ in partnership with the The consultative process regarding labour market Development Fund 10 ESF: completed July 2019 measures to approach disparities between women National School of Political and Administrative provisions involves both public institutions and (ERDF) 4.1.1. Improving social partners with responsibilities and expertise in b) ROMANIA 2020, 2025 Agenda for Skills D: 4.1. Enhancing the and men D: FEBRUARY 2020 Studies and the National Agency for Equality access to DECEMBER 2019 C3. methods of monitoring, evaluation and of Chances between Women and Men - the field of labour market (Permanently). Moreover, employment of R2.3. “Research report: Identification of effectiveness of review of the strategic policy framework and the PES-related documents/measures are discussed 11 Development of a national policy framework for all jobseekers, employment policy adjustment measures and labour markets and data collection methods and approved by the board of directors. These social inclusion and equality of chances after 2020 including youth, solutions (proposals to modify the currently access to quality The national strategic framework includes documents/measures will also be submitted to and of inactive implemented ones and the identification of new employment trough arrangements for the monitoring, evaluation and public consultation. DWD officers: Andreea Tudor, Adrian Barbu people and measures)” – July 2019 the development of review of the strategy and data collection methods promoting self- the infrastructure D: FEBRUARY 2020 C3. arrangements to ensure that its design, Authority officers employment, and implementation, monitoring and review are - Elaboration of the national employment ESF: 4.1.3 Promoting a C4. arrangements to ensure that its design, · ACOP Project: (Stefania Andreescu – the social economy; conducted in close cooperation with the relevant strategy after 2020 D: DECEMBER 2020 better work/life implementation, monitoring and review are MLSJ) 4.1.2 Modernising stakeholders balance including conducted in close cooperation with the bodies labour market The consultative process regarding labour market DWD officers: Irina Nichifor, Valentina Niculae, · Conditionality: Cristina GEANĂ – institutions provisions involves both public institutions and Monica Pana access to childcare, that promote equality, with the social partners inspector a healthy and well– and the relevant organisations of the civil society and services to social partners with responsibilities and expertise in · Contact person for ANES: dir. - Organisation of regional workshops with social ensure timely and the field of labour market (Permanently). Moreover, Authority officers adapted working partners and relevant organisations of the civil Gianina Dimitrescu tailored assistance the PES-related documents/measures are discussed environment where · ACOP Project: society (within the above plan). and support for and approved by the board of directors. These health risks are -The national strategic framework includes demand and documents/measures will also be submitted to · Conditionality: Elena SOLOMONESC, taken into account, measures to ensure involvement of the offer correlation, public consultation. State Secretary the workers’ organisations of the civil society in the process of transitions and adaptation to implementation, monitoring and review. mobility on the C4. arrangements to monitor, assess and review change and healthy - Public consultation and debate related to the labour market; the active labour market policies and active aging; Government Decision for purposes of approval of Annual proposal of employment programmes and the strategic documents D: MARCH 2020 training plans for jobseekers to MLSJ. 56 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 57 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) The existence of a national and/or regional strategic C5. measures to target low-skilled, low-qualified Strategic policy policy framework for the system of education and adults and persons with disadvantaged socio- framework for training that includes: economic backgrounds and upskilling pathways the system of C1. evidence-based systems of anticipation and Each year, the MNE implements various measures education and forecasting of the skills, as well as monitoring for adults to allow them to complete their studies, training, at all mechanisms and services Strategic planning including the “The second Chance” Programme. levels documents regarding the technical and vocational Moreover, in 2020 the instructions for the training at a regional, county and local level (on an certification and assessment of the Community MINISTRY OF annual basis). A mechanism of anticipation of the Centres for Lifelong Learning will be elaborated. NATIONAL EDUCATION needs for certain skills and qualifications will be developed within a POCU-financed project. C6. measures to support teachers, trainers and (MNE) C1. wthe career progression of the graduates academic staff as regards appropriate learning for quality and effective guidance offered to the methods, but also the assessment and validation European Regional learners of all ages of key competences Development Fund MEMO – APPROVED IN THE GOVERNMENT C1a -there are 2 interconnected graduate tracking The national strategy for education and training (ERDF) MEETING DATED MAY 30, 2019 systems (Permanent). The tertiary graduate sets forth the measures required to extend mutual 4.2 Improving learning and good practice exchanges to ensure tracking mechanism is developed within the CAOP Main measures taken: access to the preliminary conditions for the participation Project (March 2019). The VET graduate tracking The MNE will update and extend the measures inclusive and in a European inclusive labour market. The non- mechanism is developed within the HCOP Project. set forth in the national strategies by 2030. The quality services competitive POCU project “Systematic development strategic policy framework will be ensured by the in education, of vocational and technical education in line with the C2. measures to ensure equal access to, following strategies: training and social and economic development needs at a national, participation in and completion of quality, - National Strategy to reduce the early school lifelong learning regional and local level” aims at improving the relevant and inclusive education and training and leaving rate by developing the competences of people skilled to provide vocational the acquisition of key competences at all levels, infrastructure; - National Strategy for education and training programs, starting with the initial including higher education D: 2020 12 ESF: vocational training vocational training and the on-going vocational Equal access is ensured by national social 4.1.4    Improving programmes implemented on an annual basis - National Strategy for tertiary education training and at assessing learning outcomes the quality, (Romanian Programme for School, School acquired in formal, non-formal and informal - National Infrastructure Strategy 2019-2023 contexts. D: 2020 effectiveness and consumption, 200 Eur – Money for a warm D: DECEMBER 2020 labour market meals in high schools, School transfer, Tickets for Implementation period January 2019 - December 12 relevance of kindergarten education) and the National “Second Moreover, another non-competitive project, “Relevant 2020 curriculum, open education for all – CRED” reviews the systems of Chance” Programme. The quality of education education and is ensured by means of training projects and the curriculum for primary and lower secondary TA education and provides training for 55000 teachers. training programmes destined for the teachers. ACOP project– beneficiary MNE: “The New 2 non-performing POCU projects will contribute The project includes measures to support the 4.1.5    Promoting Perspective in Education "- development of public innovative and sustainable application of the new to the quality of higher education, but also to the flexible upskilling policy education 2030 national curricula and enhanced the access of the relevance of skills and competences on the labour and reskilling children in primary and lower secondary education market DWD officers: Alina Mirea, Carmen Tumurica opportunities to quality learning experiences D: NOVEMBER 2021 for all, even C3. coordination mechanism across all by facilitating Authority officers C7. measures to promote the mobility of levels of education and training, including career transitions learners and staff, but also the transnational tertiary education, and a clear distribution of · ACOP Project: and promoting collaboration of education and training providers, responsibilities between the relevant national · Conditionality: Merima PETROVICI, professional including through the recognition of learning and/or regional bodies Director mobility outcomes and qualifications A coordination mechanism is being set forth to 4.1.6 Promoting Implementation Unit for Projects Financed ERASMUS + - transnational mobility for higher cover all levels of education and professional equal access, in by Structural Funds education students, VET students, teachers. Beyond training. (Letter MNE no.2152 / 2015) PERMANENT particular that of 2020, the programme will continue to finance the the disadvantaged C4. arrangements for the monitoring, evaluation mobility of students attending secondary education groups, to quality and review of the strategic policy framework and general education courses. and inclusive The holistic framework of coordination of the education and implementation, monitoring and assessment of the training, from national strategies is set forth by virtue of Letter early childhood of the MNE no.2152 / 2015 and it is developed education and care by the technical working groups (Permanent). The through general technical working groups draft reports for each and vocational particular strategy. The integrated monitoring education and report is validated by a Monitoring Committee. The training and up to monitoring methodology is developed by the World the tertiary level Bank within the ACOP project. of education D: SEPTEMBER 2018 58 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 59 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) The existence of a national strategic policy The existence of a National Roma Integration framework for social inclusion and poverty reduction Strategy (NRIS) that includes the following: that includes: In order to fulfil the existence criterion for a National Roma Integration Strategy (NRIS), the C1. evidence-based diagnosis of poverty following measures will be taken: and social exclusion including child poverty, • Organisation of meetings of the Advisory homelessness, spatial and educational Committee ANR - ANR- segregation, limited access to essential services • Bilateral consultations with the central and local and infrastructure, and the specific needs of public authorities vulnerable persons • Public events to identify / debate priorities - Development of a diagnosing analysis including (ANR / MEF through the technical assistance a precise evidence-based identification of the project financed under Axis 7 of the Human National strategic Capital Operational Axis) 2019 MEMO – APPROVED IN THE GOVERNMENT challenges related to social inclusion policy framework • Design of first project NRIS, ANR D: QUARTER MEETING DATED MARCH 21, 2019 In August 2019 the SNSPA experts sent a first deliverable for social inclusion I 2019 On August 19, this year, the National Roma draft to MLSJ, which received several observations and and poverty • Consultation of the responsible ministries Contact Point organized the meeting of supplementing suggestions. After revision, the deliverable reduction / authorities for the first NRIS project D: will be submitted for discussions within the Inter-ministerial the Inter-ministerial Committee for the QUARTER I 2019 Working Group between August 26 and 30, 2019. • Action plans developed by the responsible monitoring and evaluation of the Strategy of MINISTRY OF Subsequent to the approval of its content by the IMWG, the MEMO – APPROVED IN THE GOVERNMENT the Romanian Government for the inclusion of ministries / authorities, ANR, responsible LABOUR AND MLSJ will send the material to the MEF. MLSJ is expected MEETING DATED DECEMBER 18, 2018 the Romanian citizens belonging to the Roma authorities SOCIAL JUSTICE to observe the deadline assumed by memorandum for this D: QUARTER I 2019 minority. (MLSJ) material, namely Measures taken: • revision / adjustment T: QUARTER II 2019 The progress registered by ANR to define D: SEPTEMBER 2019 • Completion and approval of NRIS by Government the Roma Inclusion Strategy after 2020 was European Regional · Elaboration of the National Strategy Ordinance - measures to accelerate Roma presented. C2. measures to prevent and combat segregation for social inclusion and equality of integration, to prevent and eliminate segregation, The next meeting of the Committee will take Development Fund National Roma in all fields by various methods, including the chances after 2020 taking into account the gender dimension and (ERDF) Integration place in October 2019 and it will submit the provision of adequate income support, inclusive situation of young Roma, and to set baseline and D: MARCH 2020 Strategy first version of the strategic document for labour markets and access to quality services for measurable milestones and targets 4.3 Increasing the vulnerable persons, migrants included debate TA Dedicated chapter within NRIS, based on the action socio-economic - Elaboration of a national strategy for social National Agency for The grant application for TA POCU entitled ACOP project – beneficiary: MLSJ elaboration of plans of the responsible ministries / authorities, integration of inclusion and the reduction of poverty after 2020 the Roma (ANR) ANR D: QUARTER II 2019 Continuing to strengthen the capacity of the marginalised a national policy framework for social inclusion (2021-2027) National Roma Contact Point - Stage 2 was communities, and equality of chances after 2020 - project C1. measures to accelerate Roma integration, to 13 - Elaboration of an action plan (by the Quality of 14 submitted, aiming at organising various events migrants and Life Research Institute and the Ministry of Labour Implemented by the Ministry of Labour and ESF: prevent and eliminate segregation, taking into meant to improve the social inclusion policies disadvantaged and Social Justice) that includes measures to Social Justice in partnership with the National 4.1.8    Promoting account the gender dimension and situation of for Romanian citizens who belong to the Roma groups, through provide adequate income support, inclusive labour School of Political and Administrative Studies socio-economic young Roma and to sets baseline and measurable minority in the following fields: accommodation, integrated markets and access to quality services and the National Agency for Equality of Chances integration of milestones and targets Elaboration of a dedicated chapter within NRIS, children's rights, employment, education, measures that D: FEBRUARY 2020 between Women and Men marginalised based on the measure plans assumed by the anti-discrimination include housing communities such C3. measures to allow the shift from DWD officers: Andreea Tudor responsible ministries / authorities. - ANR. – ANR D: and social services as the Roma; QUARTER II 2019 Measures taken: institutional to community-based care - Elaboration of an action plan that includes ESF: Authority officers C2. arrangements for the monitoring, evaluation · Elaboration of the National Roma measures that should allow the shift from and review of the Roma integration measures Integration Strategy (NRIS) institutional to community-based care · ACOP Project: (appointed by MLSJ-) 4.1.7 Promoting D: FEBRUARY 2020 Elaboration of a dedicated chapter within NRIS Stefania Andreescu active inclusion for related to: · Conditionality: Elena SOLOMONESC, DWD officers: Adrian Barbu, Alin Mihai various purposes, C4. arrangements for ensuring that its design, State Secretary · the monitoring and evaluation system; including that of implementation, monitoring and review are conducted in close cooperation with the social · the strategy review system – ANR Authority officers promoting equal opportunities partners and the relevant organisations of the D: QUARTER II 2019 · ACOP Project: civil society and active C3. arrangements for the mainstreaming of · Conditionality: Mariana Buceanu • Organisation of four regional workshops with the participation, Roma inclusion at regional and local level participation of social partners and the relevant and improving Definition within NRIS of the arrangements for the organisations of the civil society (within the mainstreaming of Roma inclusion at regional and Public Policy Department Counsellor employability; above-mentioned project). local level • The national strategic framework includes D: QUARTER II 2019 arrangements for ensuring the involvement, implementation, monitoring and review by C4. arrangements for ensuring that its design, organisations of the civil society. implementation, monitoring and review are - Public consultation and debate related to the conducted in a close cooperation with the Government Decision to approve the strategic Roma civil society and all the other relevant documents. stakeholders, including those at the regional and D: MARCH 2020 local levels Consultation with the relevant stakeholders through MLSJ estimated (in Aug 2019) that all deadlines the ANR Advisory Committee and through various will be met public events about NRIS D: QUARTER II 2019 60 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 61 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) The existence of some monitoring mechanisms that cover all procedures under the national public procurement legislation and that include: 1. Arrangements to ensure the compilation The existence of a national or regional strategic of effective, reliable and exhaustive data and policy framework for health that contains: indicators facilitating the reporting obligations C1. a mapping of the health and long-term care under Articles 83 and 84 of Directive 2014/24/ needs, including reference to the medical staff, EU and Articles 99 and 100 of Directive for the purpose of ensuring sustainable and 2014/25/EU. The data and indicators cover at coordinated measures least the following elements: a. The quality and intensity of the competition: Elaboration of five regional master plans (South- the names of the winning bidders, as well as East, South-Muntenia, West, Centre, Bucharest-Ilfov) those of the initial bidders, the number of initial - MH, D: MAY 2021 Strategic policy MEMO – APPROVED IN THE GOVERNMENT bidders, the number of selected bidders, the - Development of the Healthcare Professionals contractual price framework for MEETING DATED DEC 18 2018 Register, MH D: QUARTER III-IV 2022 The Quality and intensity of the competition: the health Measures taken: names of winning bidders, as well as those of the Fulfilled - The measures already implemented C2. measures to ensure the efficiency, initial bidders, the number of initial bidders, the within the current programming period meet the Ministry of Health sustainability, accessibility and affordability to · Interim assessment of the number of selected bidders, the contractual price criteria. (MH) health and long-term care services, including implementation of the National National Self-Assessment transmitted by ANAP a specific focus on individuals who have been Health Strategy 2014-2020 - MH, · It is necessary to clarify what you European Regional understand by “names of winning bidders”. – no. 8025/28 June excluded from the health and long-term care D: QUARTER IV 2019 Development Fund Do you mention the name of the winning systems · Assessment of the implementation Clarifications are necessary in order to define (ERDF) bidder for each procedure, the names of Development of some testing / screening of the National Health Strategy the monitoring mechanism within the ACOP the bidders for each procedure / lot or methodologies for noncommunicable or 2014-2020 - MH, D: March 2020 project, implemented with the World Bank 4.4 Ensuring the names of the winners in the case of communicable diseases representing public health support. equal access to · Elaboration of the National Health Effective a framework agreement concluded with problems (e.g., breast cancer, cervical cancer, several economic operators? healthcare by Strategy (SNS) 2021-2027 – MH T: mechanisms of colorectal cancer, hepatitis B and C, tuberculosis, TA developing the November 2020 monitoring of the · What do you understand by “number of pregnancy and children, etc.) D: QUARTER IV 2020 Supporting the implementation of the National infrastructure, public procurement selected bidders”? Is it the bidder selected - Completion of the plans developed for the main TA Public Procurement Strategy by strengthening 15 including access to 16 market in the case of procedures that have a morbidity causes (The National Cancer Plan, The A POCA project was submitted within the call the administrative capacity of ANAP and of the primary care selection phase (such as, for example, the Hepatitis Plan) - MH, D: QUARTER I 2021 for IP 14 restricted procedure or the competitive contracting authorities National Agency for - Implementation of the integrated tuberculosis (the suggested deadlines will be met provided procedure with a negotiation or the ESF: Public Procurement prevention services and patient-centred care - MH, that the financing contract is signed in July this competitive dialogue)? Moreover, by DWD officers: DCSM - Beatrice Nanis 4.1.9 Enhancing (ANAP) D: QUARTER II 2021 year) “selected bidders” must we understand the equal and - Completion of the health examination prevalence the admissible bid within an open ACOP officers: timely access to survey among the population, according to the DWD officers: Alin Mihai, Iulia Gugiu, procedure? quality, sustainable European methodology - MS, D: QUARTER III-IV Valentina Niculae, Andreea Tudor · It should be clarified whether the Authority officers and affordable 2022 “contractual” value refers to the price services; improving · ACOP Project: - Development of the disease registers by Authority officers awarded to the initial contract (as a accessibility, pathologies and their interconnection to the result of the completion of the award · Conditionality: Raluca Marțian effectiveness · ACOP Project: electronic patient file– MH D: QUARTER IV 2022 procedure) or to the final price at the end and resilience Chief of the department - Public Policies and · Conditionality: Florentina of the contract (considering any change of healthcare System Coordination Dept. C3. measures to promote community-based FURTUNESCU National Public Health in the price during the implementation systems; improving services, including prevention and primary care, Institute period in accordance with Article 72, access to long- home-care and community-based services Directive 2014/24 / EC and Article term care services Monica ISĂILĂ – Public Policy Unit Development of integrated community- 89, Directive 2017/25 / EC). What is based services, including investments for the the contractual value in the case of modernization, extension, equipping of the framework agreements, considering that Integrated Community Centres (CCI) -MH / INSP the total value of the signed contracts (National Public Health Institute), D: QUARTER IV may be different from the value of the 2021 framework agreement? - Implementation of telemedicine services in the b. Information on the final price after completion Integrated Community Centres – MH D: QUARTER and on the participation of SMEs as direct IV 2021 bidders, if the national systems provide such information Information on the final price after completion and on the participation of SMEs as direct bidders, if the national systems provide such information; 62 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 1. STRATEGIC REQUIREMENTS ROMANIA HAS TO MEET FOR THE 2021-2027 PROGRAMMING PERIOD 63 Enabling conditions FULFILMENT CRITERIA FOR THE Enabling conditions FULFILMENT CRITERIA FOR THE Specific objective NOTES + OFFICERS (Ministry of Specific objective NOTES + OFFICERS (Ministry of ENABLING CONDITION European Funds (MEF) and Line ENABLING CONDITION European Funds (MEF) and Line Romanian relevant Romanian relevant authority (COMPROMISE 13 FEBRUARY 2019) Ministries) authority (COMPROMISE 13 FEBRUARY 2019) Ministries) 1. What do you understand by "final price after completion"? a) price of the winning bid; b) price of the signed contract; 16 c) price of the contract after execution. 2. If only certain member states provide relevant information, the situation in different countries cannot be compared and we will not have a The Managing Authorities have: comprehensive image within the EU. C1. The tools and capacity to verify the compliance with the Charter. Arrangements to ensure verification of the compliance of the funded operations with the Charter of Fundamental Rights. The Ministry of European Funds will elaborate a draft guide to ensure verification of the compliance of the operations with the Charter: Managing authorities have the tools and capacity to Deadline: Quarter IV 2019 verify compliance with State aid rules: How should the verification of compliance C1. For undertakings in difficulty and be conducted? This cannot be significantly Romania considers that the application of this undertakings under a recovery requirement. Effective implemented within a project. enabling condition has no added value for the Currently, MA verifies whether a potential application and How can a checklist be made to check whether an cohesion policy and its outcomes. Moreover, beneficiary (undertaking) is in difficulty or not, implementation operational program complies with the Charter or it contravenes the simplification principles. applying a methodology to verify the classification of the EU Charter not? From a legal point of view the Charter of as a "undertaking in difficulty", as defined in the of Fundamental What if the reference framework contains all the Fundamental Rights is already compulsory for European Union state aid rules applicable to projects Charter rights? all member states. This condition generates a funded by ESI funds (part of the internal procedures 18 Rights Will the operational texts of the draft regulations disproportionate administrative burden, if it has at the MA level). that set up EU funds be included (2021-2027) in to be assessed for each operation. For undertakings under a recovery requirement: - Fulfilled - The measures already implemented powerful and consistent clauses on fundamental Tools and capacity The State Aid Register (RAS) allows the ex-ante National Council within the current programming period meet the rights (with certain guidelines for the member DWD officers: Andreea Tudor for the effective verification of the beneficiary’s eligibility for state for Combating criteria. states)? application of aid / de minimis aid; the IT system provides Discrimination CC completed the actions undertaken (C2) - CC Authority officers: Vice-president Sandu State aid rules information on the state aid / de minimis aid letter no.7798/05.07.2019 C2. Reporting arrangements addressed to the Tatiana received by a beneficiary, as well as information monitoring committee on the compliance of 17 Managing on the illegal aid to be recovered (the "Deggendorf" DWD officers: Mirela Dobre, Valentina Niculae relevant cases with the Charter authorities obligation). Methods of reporting of the compliance of funded Authority officers operations with the Charter to the monitoring Competition Council C2. Access to expert advice and guidance on committee (CC) State aid matters, provided by local or national · Conditionality: Mihai Dragoi, Director of What are the arrangements at the level of the experts from the local or national State aid State Aid project/operation to ensure compliance? Some authorities. examples might help understand the meaning of According to paragraph (2), art. 6 of EGO no. this. 77/2014 on the national state aid procedures for How to create a tool capable of highlighting the the amendment and supplement of the Competition “relevant cases” in terms of status compliance? Law no. 21/1996, the Competition Council (CC) Do the Managing Authorities need a separate guide provides state-level specialized state aid assistance for the Charter? to the authorities, other providers and state aid beneficiaries in order to ensure the fulfilment of the obligations assumed by Romania in this field, as a European Union member state, including the obligations in the process of elaboration of rules or administrative documents that set forth measures such as the state aid / the de minimis aid. 64 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 2. COHESION POLICY 2021-2027 SIMPLIFICATION MEASURES 65 Enabling conditions FULFILMENT CRITERIA FOR THE NOTES + OFFICERS (Ministry of ANNEX 2. Specific objective Romanian relevant ENABLING CONDITION European Funds (MEF) and Line Cohesion Policy 2021-2027 Simplification Measures authority (COMPROMISE 13 FEBRUARY 2019) Ministries) The action plan is completed and approved by the Ministry of European Funds and by the LEGAL REFERENCE Ministry of Labour and Social Justice (MLSJ), NO. SIMPLIFICATION DESCRIPTION (ARTICLE) to which ANPD subordinates MEMO – APPROVED IN THE GOVERNMENT I. Legal framework – A shorter, unified legal framework providing certainty from the start MEETING DATED MAY 14 2019 The existence of a national framework for the Measures taken: For the first time, 7 shared management funds implementation of the UNCRPD that includes: Single rulebook for 7 are covered in a single framework. This simple, yet Elaboration of the “National Strategy on the 1 CPR Rights of Persons with Disabilities 2021- shared management funds comprehensive rulebook provides aligned implementation 2027” and of the Operational Plan to ensure rules for all. C1. Objectives with measurable goals, a data implementation of the UN Convention on the collection and monitoring mechanism. Rights of Persons with Disabilities (CRPD) with Legislative structure: the structure of the CPR is changed specific objectives / targets and measurable to make it easier to understand. Elaboration of a functional monitoring mechanism indicators. for the implementation of the 2021-2027 Strategy. This document will be drafted by the 2 User-friendly CPR Many provisions are either cut, incorporated in the main CPR and its annexes The activity includes: World Bank within the “Consolidation body of the legislative text or in annexes. Overlaps and of the coordination mechanism for the repetitions have been rationalized to create a single - the drafting of a complete work plan related to implementation of the UN Convention on the Rights of Persons with Disabilities” project, comprehensive framework. data collection; D: MARCH 2021 Implementation which is cofinanced from the European Social and enforcement of - data collection and the drafting of the first Fund by ACOP”, whose beneficiary is MLSJ - Simpler, shorter and just one regulation (rather than ANPD. two). the United Nations Monitoring Report on the 2021-2027 strategy. D: Convention on the JUNE 2021 D: JULY 2020 Rights of Persons The Project includes: A common CF and ERDF The merger of ESF, FEAD and YEI will result in increased with Disabilities -the setting up of an Inter-ministerial Committee to - the setting of a set of key indicators for the 3 regulation, The merging of visibility and readability of EU action in the employment ERDF/CF ESF+ (UNCRPD) ensure the implementation of the Convention (ICCI), implementation of the UN CRPD; 2019 3 funds to create ESF+ and social areas. It will also facilitate combination of under the coordination of ANPD. D: AUGUST 2019 - the elaboration of the Evaluation report on the social inclusion and activation measures, whilst ensuring implementation of the " A Barrier-free society that simpler rules for addressing material deprivation MINISTRY OF C2. Arrangements to ensure that the for persons with disabilities" 2016-2020 National are maintained. 19 LABOUR AND Strategy; 2019 – The WB specialists are currently accessibility related policy, legislation and SOCIAL JUSTICE working on this evaluation. In July, I had a personal standards are properly reflected in the (MLSJ) discussion that lasted approx. 3 hours with a WB The number of empowerments is significantly preparation and implementation of the expert on this topic reduced. Empowerments regulate operational details DA - Articles 63(10), programmes. National Authority - quantitative data collection and calculation of in implementing or delegated regulations, but are only 73(4), for Persons with key indicators; 2020 elaborated after the entry into force of the CPR. This 88(4), 89 (4), 107 Elaboration of a horizontal handbook by the Disabilities (ANPD) - diagnosing of the situation of the persons (Almost) all rules in one change therefore increases legal certainty and reduces and Ministry of European Funds to ensure that the with disabilities in Romania to support the new 4 legislation and standards are properly reflected place, at one time potential delay. IA – Articles 37(6) 38(5), 2021-2027 National Strategy for Persons with Ministry of European in the preparation and implementation of the 63(11), Disabilities; 2020 Funds programmes. The Handbook is on the anvil. A - organisation and development of a There were more than 50 empowerments in 2014-2020; 66(4), 98(4), first draft of this document will be sent to the consultation session related to the project of the we have 9 for 2021-2027 (not counting Commission 103(2), 104(4) management by the end of the week (August 19- 2021-2027 Strategy and the Operational Plan. implementing decisions). 23, 2019). A meeting with the EC representatives QUARTER III 2020 will take place in Bucharest on this topic, on Explicit provisions are introduced for phasing of TA August 21, this year, in order for the considered operations between programme periods. approach to be agreed upon. As of January 2019, ANPD has been More certainty regarding implementing the "Consolidation of the 5 transition - clarity on These provisions give new legal certainty and predictability Art. 111 CPR (For the period 2014-2020, for purposes of coordination mechanism for the implementation phasing to Managing Authorities and Member States. The result: implementation of the horizontal topics within the of the UN Convention on the Rights of it is simpler and less risky to start projects towards the programme, MEF has drafted the Handbook on the Persons with Disabilities” project, cofinanced end of the period. integration of the horizontal topics into the projects from the European Social Fund through financed by ESIF - the first part of this Handbook is the “Administrative Capacity” Operational dedicated to the "Equality of chances") Programme. The annexes contain templates commonly used by Common templates the funds. This will help speed up implementation as Annexes II, V-VII, XIV-XX 6 MEF officers: Marie Jeanne Ghigea available upfront all elements relevant for programming and start of CPR implementation are known upfront. Authority officers · ACOP Project: Key provisions, shorter and The number of words in the regulation is reduced by · Conditionality: Daniela PÂRVU Legal 7 CPR, ERDF/CF, ESF+ simpler text almost 50%. Simpler, clearer wording is used throughout. advisor 66 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 2. COHESION POLICY 2021-2027 SIMPLIFICATION MEASURES 67 LEGAL REFERENCE LEGAL REFERENCE NO. SIMPLIFICATION DESCRIPTION NO. SIMPLIFICATION DESCRIPTION (ARTICLE) (ARTICLE) II. Policy framework – A streamlined framework for easier programming V. Faster and more strategic programming – For a quick and simple start to implementation 11 thematic objectives in 2014-2020 are consolidated One less layer in the No more Common Strategic Framework – one less layer 17 No provision into 5 policy objectives. Broader policy objectives are process in the programming exercise. Shorter menu, more simpler for reporting and allow Member States to be Art. 4 CPR Art.2 ERDF/CF The Partnership Agreement (PA) is a single strategic 8 flexibility more flexible in shifting funds within a priority. Art. 4 ESF+ One strategic document document covering 7 shared management funds at 18 per Member State to guide national level and setting out coordination arrangements Art. 8 CPR Reduced number of specific objectives too. the negotiations between these and other EU instruments. Fewer details, less description, more structured data. Administrative capacity Investments in administrative capacity can now be The PA will steer programme negotiations at the beginning 9 integrated with sectoral delivered under each policy objective instead of needing Art.2 ERDF/CF No more changes of the PA but will not be amended after this. In the 2014-20 period, 19 Art. 9 CPR objectives a separate policy objective (cf. TO11 in 2014-2020). after initial adoption all programme changes had to be reflected in a changed PA – an administrative burden for programme authorities. Templates for PA and programmes, types of intervention, Thematic concentration will now be calculated at the Clarity from the moment climate change earmarking, indicators are all annexed Annexes I, II CPR and I national level, giving Member States more flexibility and 20 of adoption of the to the proposals. This gives more clarity and time to and II ERDF choices at the regional level. ERDF thematic concentration Commission proposal Simpler rules for thematic Art.3 ERDF/CF Art. 7 prepare programmes in a format ready for submission. 10 takes account of levels of development, ESF+ thematic concentration ESF+ Less text, more focus in Only key information is required in the PA – and in concentration requirements in the areas covered by 21 Art. 8 CPR relevant CSRs, youth and addressing material deprivation the PA structured form. are adjusted to Member States’ needs. No overlaps between the content of PA and programmes No overlaps between PA Art. 8, 17 CPR and 22 (for example, enabling conditions or analysis to be and programmes Annexes II, V, VI Policy objectives (and specific objectives) set out objectives provided only in programmes, not in the PA). Simpler wording for policy Art. 4 CPR Art.2 ERDF/CF 11 instead of a long description of elements, means and Two processes, one PA can be submitted together with relevant annual objectives Art. 4 ESF+ 23 Art. 7(3) CPR details of possible actions. submission National Reform Programme (if timing is appropriate). 24 Reduced document burden The PA can be included within the first programme submitted. Art. 7(4) CPR III. Conditions – Fewer, strategic requirements to increase policy effectiveness The text of programmes will be “lighter”, focusing on Shorter, better structured the achievement of objectives and allocations per fund. Art. 17 CPR and Annexes 20 conditions instead of almost 40 in 2014-2020. 25 programmes Information is required only one time in practical context - V and VI lengthy repetitive descriptions can be avoided. Conditions are tightly focused on the policy areas with The intervention logic will be focused on broad policy the most impact on the effectiveness of cohesion policy. 12 Fewer enabling conditions Annexes III, IV CPR objectives and specific objectives. All indicators and types They do not cover existing legal obligations. Moreover, Streamlined intervention 26 of inter- vention are at one level – specific objective only Art. 17 CPR they do not cover areas where other means (such as logic (not spread between priorities and specific objectives as programming priorities, project eligibility criteria or in the past). administrative capacity measures) are more appropriate. There is greater flexibility in making smaller financial Fewer and clearer Criteria are fewer, clearer, more tangible and easier to No Commission decision adjustments to a programme – transferring up to 5% of 13 Annexes III, IV CPR for non- substantial a priority’s financial allocation within the same Fund and fulfilment criteria measure. 27 Art. 19(5) CPR financial transfers within a programme (with an overall ceiling of 3% of programme programme allocation) There is no need for assessing whether an enabling does not require programme modification. 14 Automatic applicability condition is applicable or not – if the corresponding Art. 11 CPR specific objective is chosen, it applies. Minor changes and Changes to programme authorities and clerical and 28 corrections do not require editorial changes can now be made directly by Member Art. 19(6) CPR a Commission decision States. Conditions are set from the beginning of the programming period. There is no obligation for defining No separate procedure for Combining the technical adjustment process with the 29 Art. 14(2) CPR and submitting action plans if conditions are not fulfilled adjustment performance review in 2025. Obligation for action plans 15 at the beginning of the programme – the conditions are Art. 11 CPR discontinued Special templates attached to the programme model themselves the basis for action. This should shift focus in CPR which can (as an option) make discussion of to implementation rather than reporting and decrease Encouraging the use of SCOs part of the programming. This should also result Art. 88 CPR the administrative burden. 30 simplified cost options in easier and wider use of these options. There is no from the start need for a separate decision as it is incorporated in the Annex V CPR programming decision. The use of SCOs could reduce the This technical exercise consisted of detailed calculations total administrative costs by some 25%. No verification of and corresponding guidance. It involved considerable 16 No provision additionality resources on both the Member States' and the Encouraging the use of Special templates attached to the programme model in Art. 89 CPR Commission's side and is now discontinued. 31 financing not linked to CPR which facilitate the use of financing not linked to costs. costs This should also result in easier and wider use of this option. Annex V CPR 68 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 2. COHESION POLICY 2021-2027 SIMPLIFICATION MEASURES 69 LEGAL REFERENCE LEGAL REFERENCE NO. SIMPLIFICATION DESCRIPTION NO. SIMPLIFICATION DESCRIPTION (ARTICLE) (ARTICLE) Instead of reimbursing actual expenditure based on V. Territorial tools – Simpler design tailored to local situations invoices, payment will increasingly be based on flat-rate reimbursement, unit costs or lump sums. Existing programming and implementation structures can be continued, including the Community-led Extended use of simplified SCOs are further encouraged by simplifying rules and 43 Art. 48-51 CPR Local Development (CLLD) and Integrated Territorial cost options ("SCOs") calculation methods, providing more off-the-shelf options and Investments (ITIs) established in 2014-2020. making them compulsory for operations of small amounts. A dedicated policy Art. 4(1)(e), 22-27 CPR 32 objective – building on the Choosing a single dedicated policy objective means fewer SCOs not only reduce bureaucracy linked to verifications, 2014-2020 tools specific objectives and simplicity in using indicators. Art. 8-9 ERDF/CF they also reduce the risk of errors. Territorial tools used under PO5 can combine activities Payments from the Commission to the Member financed under all other policy objectives – enabling a State or region conditional on the achievement of genuinely multi-sectorial integrated approach tailored to pre-agreed results/outputs or completion of policy the local context. actions or processes. This option is the continuation A new option: financing of the «payments based on conditions» introduced in 44 not linked to costs / Art. 46 CPR the Omnibus. It represents a radical simplification in Much shorter provisions on CLLD and ITI. Key Art. 22-28 CPR moving away from invoices Clarity on requirements, implementation as it changes the focus from costs, 33 requirements are identified in the regulations, national simpler wording reimbursement and checks linked to individual projects territorial tools are recognized. Art. 8-9 ERDF/CF to tracking deliverables and results for the projects, a group of projects or schemes. For the first time, existing territorial tools in the Member Building on national tools Technical assistance will be reimbursed in proportion to 34 States can be used and count towards the 6% target for Art. 22(c)CPR that work progress in implementation, using a flat-rate. In the case sustainable urban development. of the ERDF and Cohesion Fund, reimbursement from the Commission will be topped up by a flat rate of 2.5% to Art. 31 CPR Common approach to all territorial tools, covering Technical assistance cover technical assistance, and in the case of the ESF+ it Same rules for all 35 different territories with a defined minimum set of Art. 22-23 CPR 45 reimbursed in line with will be 4% (5% for the material deprivation programme). territorial tools requirements for territorial strategies. implementation progress In addition, Member States or regions may undertake Art. 32 CPR additional technical assistance actions in order to further Simpler rules on the status of local authorities, Clarity on status of local reinforce capacity of the national, regional and local 36 clarification of when "intermediate body" status is Art. 23(4) CPR authorities authorities as well as beneficiaries. needed. Clearer, simpler rules on VAT eligibility – full eligibility for 46 VAT eligibility projects below EUR 5 million, no eligibility above. No grey Art. 58(1) CPR Clear goal for sustainable areas of recoverability/deductibility. Earmarking counts all interventions under all territorial Art. 23 CPR and Art. 9 37 urban development with tools focused on urban areas. ERDF Projects may be implemented outside the Member State more flexibility Expenditure and projects 47 – and outside the Union – provided they contribute to the Art. 57(4) CPR outside the Member State objectives of the programme. Multiple funds - one set of When using a CLLD, it is now possible to nominate a 38 Art.25(4-6) CPR For ERDF, a simplified, pro rata approach to the use rules for CLLDs "lead" fund and apply only the rules of that fund. of funding is proposed to help implementation and administration of projects in different categories of A single instrument, the European Urban Initiative, will region. This will particularly help projects which cover an A coherent approach for Expenditure calculations 39 replace several different instruments and initiatives in Art. 10 ERDF/CF entire Member State. the cities where projects cover the area of urban policy. 48 Art. 57(3) CPR different categories of For ESF+ the condition is that operations are for the region Simpler structure for CLLDs, ITIs and amounts programmed under PO5 all Art. 22 CPR and Art. 9 benefit of the programme. Member States are thus free to 40 allocate the expenditure entirely to one of the categories meeting the 6% target count towards the target. ERDF of region in a priority or they can use a pro rata, if the programme covers more than one category of region. VI. Simpler implementation – Faster and simpler delivery of results A flexible, simple transfer mechanism to enable effective Straightforward transfer support where it is required. Complex issues arising from 49 system among Funds and Art. 21 CPR No specific rules and combination of funding may be avoided – a single set of The major project process is discontinued: Commission instruments 41 procedure for major No provisions rules apply (those of the receiving fund or instrument). approval will not be necessary for any particular projects. projects Projects which, due to lack of available funding under a centrally managed instrument, cannot be supported "Seal of Excellence" (notably Horizon Europe, LIFE+ or ERASMUS+), may Specific rules on revenue generating investments are no No specific rules for concept: be picked up by the managing authority and funded longer part of the legal framework (although of course, 50 Art. 67(5) CPR revenue generating applied integration of EU under the same conditions (including the same State aid 42 Member States should comply with State aid rules). This No provisions projects beyond State aid instruments regime) as the projects supported by the corresponding measure is expected to reduce total administrative costs rules Union instrument. For such projects, there is no need to by some 1%. organise another call for proposals or a selection process. 70 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 2. COHESION POLICY 2021-2027 SIMPLIFICATION MEASURES 71 LEGAL REFERENCE LEGAL REFERENCE NO. SIMPLIFICATION DESCRIPTION NO. SIMPLIFICATION DESCRIPTION (ARTICLE) (ARTICLE) VII. Management, control and audit – Simpler and proportionate system with high reliance VIII. Financial instruments (FIs) – simpler and less detailed provisions on national systems Provisions on financial instruments are better integrated FIs better integrated into 58 into the programming and implementation process from across CPR Simplified «designation» of authorities. For post-2020, programming process the outset. systems would largely be «rolled over» to the next programming period, without requirement for programmes Designation procedure to undergo a new designation process. The number of elements covered in an ex-ante 51 Art. 72(1) CPR discontinued assessment has been reduced to make the focus more Assurance would still be obtained by early systems audits. Better integrated ex-ante strategic. Existing ex-ante assessments may be reviewed Rollover is expected to contribute to a speedier start of the 59 assessment containing and updated leading to a quicker launch of the FI. The Art. 17(3), 52(3) CPR next programming period. fewer elements assessment of market failures, investment needs and complementarity with other forms of support are part of the needs analysis in the programmes. A more proportionate approach to management checks by making management verifications risk-based, instead of covering 100% of operations. Managing authorities may decide at PA stage to Reducing the number of contribute to InvestEU and have their FIs implemented 52 Art. 68(2) CPR verifications through the four policy windows thus benefitting from This is an important reduction of the control burden, reducing total administrative costs by 2-3% for cohesion Contribution to InvestEU an EU-level budgetary guarantee mechanism: increased policy funds. 60 – combining EU resources leverage, better complementarity, increased coverage of Art. 10 CPR under one set of rules risks, higher economies of scale, lower administrative burden, simplified accountability framework. Applicable Simpler audit requirements and fewer burdens for rules are those of InvestEU – no more complexity arising programmes with good track record and proper from multiple rulebooks. functioning of the management and control systems. The selection of «low-risk» programmes is based on A more proportionate objective criteria. Grant aid can often be a key enabling factor for an FI 53 Art. 77-79 CPR investment. In 2014-20, this required two separate approach to audits The number of audits covering territorial cooperation operations. Now it will be possible to combine grants programmes will be drastically reduced, by introducing a More flexible combination and FIs as a single operation following the rules of an common audit sample for ETC programmes (to be drawn 61 of grants with financial FI operation. Art. 52(5) CPR by the Commission). instruments Bodies providing FIs will also be allowed to provide grants (both investment grants and grants to support the The Commission will audit only the audit authority if preparation of investments) its opinion is reliable and the Member State is part of the collaboration with the European Public Prosecutor's Simpler rules on Rules on management costs and fees have been Office. 62 management costs and simplified while keeping them performance based to Art. 62(3) CPR 54 Single audit arrangement Art. 74 CPR fees encourage efficient management. ERDF and Cohesion Fund projects below EUR 400.000 eligible cost and ESF projects below EUR 300.000 will be audited once only prior to completion. Other projects The rules on payments have been considerably simplified only once per accounting year. Streamlined payment while maintaining the all-important link between 63 Art. 85-86 CPR applications payments to financial instruments and the corresponding disbursements to final recipients. Expenditure in the accounts is cleared by Member State Simplified acceptance of audit authorities. No obligation to submit "zero accounts" 55 Art. 92-96 CPR The rules on re-use of returning money have been made accounts when no payment claims are submitted in a given Clearer rules on fund accounting year. 64 simpler and clearer. This enables a smoother flow and Art. 56 CPR recycling transition from one programming period to the next. Simpler template for Various reporting streams will be integrated, and there will Less information is required for accounts and payment 56 accounts and payment Annexes XIX-XX CPR no longer be specific reporting on individual FIs. FIs are applications. One reporting system for application 65 just one delivery tool among others to reach programme Art. 37 CPR all forms of finance objectives, and so can be part of general reporting and monitoring. A simpler and clearer rule about the starting point and length of document retention. Documents will need to Clear document retention 57 be kept over a five-year period starting from the end of Art. 76 CPR The simplified overall audit system integrates grant and period for beneficiaries A simplified assurance the year where the managing authority makes the last 66 FI operations, as well as giving increased clarity on FI Art.75 CPR system for grants and FIs payment to the beneficiary. audits. 72 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 2. COHESION POLICY 2021-2027 SIMPLIFICATION MEASURES 73 LEGAL REFERENCE LEGAL REFERENCE NO. SIMPLIFICATION DESCRIPTION NO. SIMPLIFICATION DESCRIPTION (ARTICLE) (ARTICLE) A simple name with a single brand for all strands and Art. 1 Interreg and IX. Monitoring and evaluation – More frequent but lighter reporting, streamlined provisions 75 Interreg – a single brand initiatives to promote cooperation in Europe. throughout No obligation to conduct The ex ante evaluation of future programmes is an Interreg eligibility rules in Interreg-specific eligibility rules have been transferred 67 No provision an ex ante evaluation option instead of being an obligation. 76 from a separate Delegated Act into the ETC Regulation Art. 36-43 ETC one place and are therefore clarified upfront. Frequent electronic data transmission of the most up-to-date information and data will feed into the Open The deletion of expenditure limits for spending outside Deletion of expenditure Art. 57(4) CPR Data Platform. the programme area removes an important rigidity from 77 limit for spending outside and Article 22(1) ETC the system and promotes simpler and more flexible The administrative burden linked to monitoring and Art. 37 CPR the programme area (Interreg) cooperation arrangements. Real time reporting instead reporting will be radically reduced, while the policy dialogue 68 of annual reports between the key partners – the Commission, the Member Simple implementation arrangements for selecting States and the monitoring committee – will be better Art. 35 and 36 CPR smaller projects as long as the overall volume of the small structured, more transparent and focused on resolving project fund does not exceed EUR 20 million or 15% of any implementation issues. Annual implementation the programme. There is no requirement to become an reports and progress reports are discontinued. intermediate body for this purpose and legal certainty 78 Small project fund has increased. Projects under the SPF are defined as Art. 24 ETC For the future all indicators used in the programmes will "small projects", the actors implementing them are "final be part of the performance framework. The common recipients" and not beneficiaries, thus reducing their output and result indicators proposed will cover a high Art. 12-13 CPR administrative burden. Obligatory use of SCO's is further share of programme interventions – no obligation to have reducing the administrative and control burden for the Single set of indicators; programme specific indicators. Art. 7 ERDF final recipients. 69 higher coverage by common indicators For ESF+ : reduced number of indicators for general Art. 15 ESF+ and Annex I The review of ETC (Interreg) programmes can be ESF+ support, use of registers when data is available in Art. 30 ETC ESF+ 79 Simplified Review conducted at a time that best fits – no obligation to registers, use of informed estimates by beneficiaries for (Interreg) be annual nor to be organised in the form of a meeting. certain indicators, reporting on results indicators which are relevant for the operation. The ECBM enables Member States to agree on a single set of standards/rules used for projects implemented in This removes the rigidity and complexity linked to the European Cross-Border Elimination of performance 80 more than one Member State (ie rules of one Member ECBM 70 management of 6% of the allocations, set aside within No provision Mechanism reserve State may be applied in the other related to the joint the financial tables. project). X. Interreg – A single integrated regulatory framework tailored to the specific cooperation context Whole articles/chapters have been transferred from the More user-friendly, CPR to the ETC Regulation. This makes the Interreg 71 comprehensive legislative ETC (Interreg) Regulation legislation more comprehensive and the elements easier act to follow. Given the generally lower error rates found for ETC programmes, the number of audits covering territorial A more proportionate cooperation programmes will be drastically reduced, Art. 48(1) 72 approach to audits for by introducing a common audit sample for Interreg ETC (Interreg) regulation Interreg programmes. A number of Interreg programmes will therefore see their audit work considerably reduced. Co-operation with countries other than EU Member States Incorporation of the is fully integrated into the five components of the Interreg 73 co-operation outside the ETC (Interreg) Regulation regulation, thus providing a comprehensive framework for EU cooperation at internal and external borders. Transnational and maritime cooperation are integrated into component 2 and support the corresponding macro- regional strategy. The Interreg Regulation provides great flexibility with regard on how to organise bilateral maritime cross-border cooperation inside a larger Streamlining maritime and 74 maritime cooperation programme by not imposing rules Art. 3(2) ETC cross-border funds on setting- up a sub-programme, on setting-up a specific Steering Committee, on defining a cooperation sub-are, on the requirements for cross-border partnerships (from only two participating countries). 74 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 3. SUD RESPONSIBILITIES ALLOCATED TO URBAN AUTHORITIES, IN EU MEMBER COUNTRIES, FOR THE 2014-2020 PROGRAMMING PERIOD 75 ANNEX 3. Responsibilities for urban Other responsibilities Responsibilities retained at regional/managing SUD Responsibilities allocated to Urban Authorities, in EU CITY authorities in relation to project selection delegated to urban authority authority Member Countries, for the 2014-2020 Programming Period Cornwall Council and other bodies play a significant contributory England ERDF OP MA (the Department for Responsibilities for urban Other responsibilities role. Some share Communities and Local Government, DCLG) and Responsibilities retained at regional/managing CandIos CITY authorities in relation to delegated to urban n/a functions include the the England ESF OP MA (DWP) nominally retain all authority (regional ITI) project selection authority development of project responsibilities for project selection, implementation calls and provision of and monitoring. Assessing project compliance with legally applicable information to potential Assessing projects’ strategic Collecting applications frameworks (e.g. state aid rules, etc.). Strategic beneficiaries. Aurillac coherence and contribution and providing assistance assessment of projects based on the expected (SUD) to the ITI. in project development. achievement of the indicators’ target values. Taking Organizing project the funding decision through its selection committee. calls (in accordance UA responsible for with the annual plan), MA at national level, chairing commission that Defines overall framework for implementation. selecting applications, providing information coordinates and elaborates annual reports of Responsible for final control of eligibility of verifying their compliance to beneficiaries, and the different OPs’ contribution to ITI. Regional Cascais operations before approval, final approval, with the established elaborating a document governments are OP IBs responsible for managing (SUD) verification of eligibility of expenses during Azul eligibility criteria, and evaluating the quality n/a n/a their own strands of the regional OPs. ITI is execution, and the establishment of monitoring and (regional ITI) applying the approved of operations and implemented at the regional level. Each regional control mechanisms. selection criteria. justifying their relevance programme has its own calls and regional authorities for the achievement of responsible for selecting operations and reporting on the strategy’s objectives. the contribution of the selected projects to ITI. Barcelona City Council is UA performs an eligibility Compliance check of projects forwarded by UA ITI IB and is responsible check and a strategic Set out list of selection and makes a final decision. Co-responsible for for the selection of CFC Pole assessment based on an criteria, advertising and advertising funding opportunities under the ERDF- operations. It is also (SUD) evaluation matrix. Issues assisting applicants, The City Council is MA at national level launches the call for SUD SUD framework and for providing applicants with Barcelona responsible for the an opinion to the region monitoring the strategy. responsible for drafting strategies and selects them. Supervises the eligibility information and assistance in project engineering. (SUD) preparation of draft (managing authority) the SUD strategy. of operations. proposals of project selection criteria, in Assesses coherence coordination with the of projects with ITI Setting of appraisal managing authority. strategy, assesses formal criteria, provision For ERDF, MA has final approval of selection and can Chomutov compliance and has a of information to do final factual appraisal. For ESF and CF, proposals (SUD) Project selection with Formulates competitive share in meritocratic beneficiaries, launch of are appraised directly by MA or OP IB if relevant. consultation from experts calls, in co-operation Defining long-term strategic development of the assessment (for ERDF calls. Berlin at district and local levels. with actors at ITI. Organises advisory boards to discuss impact only). (SUD) Includes assessment of district and levels and of emerging development trends, evaluation financial viability and others, based on the approaches etc. Projects prioritized Development of project compliance with rules. development concepts. and selected based on proposals and selection Cork (SUD) a scoring system and Gives final approval. process, in consultation A steering committee The provision of discussed by a selection with MA. assesses the compliance information to committee. of proposed projects beneficiaries, the with the strategy, and assessment of project Prioritization of the Brno an intermediate body at compliance with the Responsible for the central monitoring system that projects included in the (SUD) the city level formally IS BMA, the setting of must be used by the ITI. strategy; support to approves projects. Projects appraisal criteria, the potential beneficiaries requiring ESF funding are preparation and launch to prepare funding assessed by the relevant of calls and monitoring applications; support to MA. and evaluative duties. beneficiaries to Procedures for selecting, funding and implementing implement/manage projects are autonomously and separately established The UA and MA are the the projects, through by each relevant MA of the OPs participating in the Danube same body. Projects are n/a management funding of the ITI: projects belonging to the strategy, (regional ITI) assessed by an evaluation consultancy related after having been prioritized by the local level, need committee, consisting for example to the to apply to specific ITI- oriented calls issued and As the MA and UA of 8 government implementation of managed fully by these MAs. Brussels are the same body, all As the MA and UA are the same body all representatives and public procurement (SUD) responsibilities are responsibilities are carried out by the MA. 8 external experts procedures; and carried out by the MA. and a consultant. The monitoring and periodic government of the capital reporting to the MA on region approves the the implementation of projects. projects. 76 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS ANNEX 3. SUD RESPONSIBILITIES ALLOCATED TO URBAN AUTHORITIES, IN EU MEMBER COUNTRIES, FOR THE 2014-2020 PROGRAMMING PERIOD 77 Responsibilities for urban Other responsibilities Responsibilities for urban Other responsibilities Responsibilities retained at regional/managing Responsibilities retained at regional/managing CITY authorities in relation to delegated to urban CITY authorities in relation to delegated to urban authority authority project selection authority project selection authority The city assesses all Project appraisals involve applications on the basis the relevant thematic Monitors and reports The MA (or OP IB) is in charge of admission and of the territorial selection services of the metropolis on progress with the eligibility criteria checks, and it also appraises the criteria defined in the and are performed in the Debrecen delivery of the ITP application against coherence with the OP and Integrated Territorial light of both the domestic (SUD) and at the same time compliance with the regulations. The MA launches The urban authority sets Programme, measuring the city contract and the OP. prepares and manages calls and collects applications, signs grant contracts up common calendars, Second appraisal by the region (MA), again including contribution of the project Lille (SUD) Inter-Municipal Committee individual projects. and undertakes financial management checks. common advertising of both the city contract and the OP. to the general aims of the pre-selects projects to funding. SUD. be submitted to the MA. The final step consists of confirmation of the MA has control with a specific support structure for Egnatia Odos MA’s decision by the Inter- n/a n/a dedicated technical capacity, including all aspects of (regional ITI) Municipal Committee. project generation and selection. ITI Steering Group City office shares Recommends the (national, provincial, Elblag (non- assessment of coherence schedule of project calls MA shares 50/50 assessment of coherence with ITI city authorities, socio- SUD urban with ITI strategy 50/50 to the MA and conducts strategy, 100% formal compliance and assessment Projects assessed by MA in terms of coherence with Limburg economic partners) ITI) with MA, recommends the monitoring of the of merit and final approval. n/a OP, quality, financial plan, regulatory compliance. (regional ITI) assesses applications project calls to MA. strategy. MA makes final selection decision. according to coherence with ITI strategy, quality Promoting, supporting and financial plan. and animating of The joint management projects; deciding The GLA holds group is responsible for selection criteria for Responsible for the significant management FI Six cities prioritizing the ERDF projects; calls for project Formal approval of projects. selection of operations responsibilities (SUD) projects, and proposing proposals; monitoring that will be supported and oversees the them to the regional the implementation of London through the strategy, implementation, council. Overall coordination of strategies at national level. the strategy and the (SUD) with ultimate executive management and projects. responsibility at the delivery of the London regional level residing with ITI. It reports upwards Selection criteria set by the MA in cooperation with the mayor. to the MAs at national Shares input into quality level. the local authorities in a dedicated working group. assessment 50/50 with Project generation, Katowice Organizes project calls, formal assessment, eligibility MA, focusing on coherence mobilisation of potential (SUD) check, shared input into meritocratic assessment Gathers documentation of projects with SUD beneficiaries. with UA, dealing with specific themes, sectoral and prepares the strategy. issues. pre-contracts of non- Lublin (SUD) competitive projects, Monitoring of projects. Final approval of projects. City Municipal which are the only Administration responsible implementation mode in Monitoring and the Lublin ITI. for tasks relating to the Kaunas coordinating the Final documentation check and approval by national- selection of operations, (SUD) implementation of level bodies in charge of OP management. based on consultations Drafting of the strategy projects. with OP IBs in related Responsible for selection and preparation of a fields. Malaga of operations, selects the draft proposal of the Role in development of selection criteria. Assesses (SUD) operations contributing to operations’ selection the eligibility of operations. the strategy, criteria, in coordination UA establishes the with the MA. municipal commission, which performs selection and approval. Submits MA approves internal procedures for project The Association of Urban Responsible for issuing to the MA: a decree or Designs selection criteria selection and monitors it through participation Municipalities of Slovenia Maribor calls. Co-responsibility decision on establishing taking into account OP in the Municipal Commission as an observer. All is responsible for selecting The MA takes the final decision on support. (SUD) for monitoring (together Liepaja the municipal commission; objectives. Responsible ITI project applications are submitted to the MA projects (through its with central ministries). (SUD) all documentation on for implementation, for verification before the final approval by the expert committee). which the decision-making monitoring and Municipal Commission. MA can perform on-the-spot is based; a conclusion on evaluation. checks. No project applications can be approved Projects selected by the selection approved by the without MA verification. Planning, organization, local authorities/urban municipal commission. Nicosia control, management Responsible for the approval of strategies and action development bodies Final approval by (SUD) and oversight of SUD plans, providing standards and guidance. involved on the basis of an municipal commission. progress. agreement with the MA. 78 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS BIBLIOGRAPHY 79 CITY Responsibilities for urban authorities in relation to Other responsibilities delegated to urban Responsibilities retained at regional/managing authority BIBLIOGRAPHY project selection authority Coordination and methodological guidance of the Responsible for Organizes project preparation and Nitra (SUD) assessment of the project calls, monitoring and implementation of the strategy. Establishment of proposals. reporting. a Partnership Council for drafting and approving strategies. The municipal town Barca, Fabrizio. 2009. An Agenda for a Reformed Cohesion Policy, A Place-Based Approach to Meeting administration is European Union Challenges and Expectations. DG REGIO responsible for the implementation of the strategy. A formal Black, Duncan and Vernon Henderson. 1999. “A theory of urban growth”. Journal of Political agreement has been Economy, vol. 107 (2), p. 252. drafted between Thüringer Ministry for Infrastructure and Agriculture individual municipalities Responsible (Ministerium für Infrastruktur und Landwirtschaft, Nordhausen and the OP IB which for subsequent TMIL) (the IB responsible for the sustainable Etherington, David and Martin Jones. 2009. “City-Regions: New Geographies of Uneven (SUD) governs the process implementation and urban development component of the ERDF OP). of project eligibility monitoring. Responsibility for assessment of project eligibility, Development and Inequality”. Regional Studies, vol. 43(2), pp. 247-265. and approval. The approval and payment for ERDF-funded projects. agreement formally sets European Commission. 2018. Policy Objective 5 – Europe Closer to Citizens and Tools for out that the municipal town administration is Integrated Territorial Development. [Policy Paper] responsible for project selection and subsequent implementation. European Commission. 2018. Assessing the performance of integrated territorial and urban strategies: Challenges, emerging approaches and options for the future. Ostalb district government is MA requested and approved an alignment of responsible for the selected ERDF- funded projects with its ERDF OP European Metropolitan Authorities. 2016. The Role of Metropolitan Areas in the Governance of Ostalbkreis alignment of project and a feasibility study of projects. Over the period, Development Challenges (ITI like n/a development with the it advised on and approved decisions concerning approach) strategic aims of the the coupling of funding mechanisms in the ITI-like Baden-Württemberg strategy. Frankowski, J., & Szmytkowska, M. 2015. Regionalne zróżnicowanie nowych partnerstw miejskich w ERDF OP. polsce. Zarzadzanie Publiczne, 2(30), 131–150. http://doi.org/10.4467/20843968ZP.15.012.3583 Municipality responsible Submission of strategy Henderson, J. Vernon and Jacques-Francois Thisse. 2001. “On Strategic Community Development”. for the selection of to MA for approval. The MA responsible for issuing the calls for projects, operations, although municipality has Patras (SUD) eligibility check and final approval, monitoring, specific operations have responsibility up until evaluation. Janas, K., & Jarczewski, W. (Eds.). 2017. Zarządzanie i współpraca w miejskich obszarach already been defined in the the final delivery of the funkcjonalnych. Raport o stanie polskich miast. Kraków: Instytut Rozwoju Miast. Retrieved ROP document. project. from http://obserwatorium.miasta.pl/wp-content/uploads/2017/10/OPM_IRM_Zarządzanie-i- współpraca-w-miejskich-obszarach-funkcjonalnych_Raport-o-stanie-polskich-miast_2017.pdf Kaczmarek, T., & Kociuba, D. 2017. Models of Governance in the Urban Functional Areas: Policy Lessons From the Implementation of Integrated Territorial Investments (ITIs) in Poland. Quaestiones Geographicae, 36(4), 47–64. Kozak, M. W. 2016a. Kapitał społeczny a zintegrowane inwestycje terytorialne w Polsce. Nierówności Społeczne a Wzrost Gospodarczy, 2(46), 374–384. http://doi.org/10.15584/nsawg.2016.2.22 Kozak, M. W. 2016b. Zintegrowane inwestycje terytorialne jako eksperyment. Studia Regionalne I Lokalne, 3(65), 50–69. http://doi.org/10.7366/1509499536503 Krukowska, J., & Lackowska, M. 2017. Metropolitan Colours of Europeanization. Institutionalization of Integrated Territorial Investment Structures in the Context of Past Cooperation in Metropolitan Regions. Raumforschung Und Raumordnung, 75, 275–289. http://doi.org/10.1007/ s13147-016-0447-y 80 OUTPUT 5 / ACTIVITY 4 - STRATEGIC REQUIREMENTS FOR ORGANIZATIONAL MODELS BIBLIOGRAPHY 81 Laurent, Helene et al. 2007. “Regional policy: What is the most efficient instrument?”. Papers in na lata 2014-2020. Raport Koncowy, Ministerstwo Inwestycji i Rozwoju, Warszawa/ Regional Science, vol. 88 (3), pp. 491-507. World Bank. 1997. World Development Report 2009: The State in a Changing World. Matkó, Marton. 2016. Sustainable urban development in Cohesion policy programs 2014- 2020, World Bank. 2009. World Development Report 2009: Reshaping Economic Geography. a brief overview. Paper presented at Urban Development Network Meeting, 18 February 2016. World Bank. 2013. Competitive Cities: Reshaping the Economic Geography of Romania. Matkó, Marton. 2016. Cohesion policy framework for integrated, sustainable urban development. Work Group IUD, 22-24 March Brussels. World Bank. 2013. Growth Poles: The Next Phase. OECD. 2006. Competitive Cities in the Global Economy World Bank, 2014. Identification of project selection models for the Regional Operating Programme 2014-2020 OECD. 2013. Definition of Functional Urban Areas (FUA) for the OECD metropolitan database World Bank. 2017. Magnet Cities: Migration and Commuting in Romania. OECD. 2014. Approaches to Metropolitan Area Governance: A Country Overview World Bank. 2018. Rethinking Lagging Regions: Using Cohesion Policy to Deliver on the Potential OECD. 2014. The OECD Governance Survey: A Quantitative Description of Governance Structures of Europe’s Regions in large Urban Agglomerations. Zodrow, George R. and Peter Mieszkowski. 1986. “Pigou, Tiebout, property taxation, and the OECD. 2015. Governing the City underprovision of local public goods”. The Journal of Urban Economics, vol. 19 (3), pp. 356-370. OECD. 2015. The Metropolitan Century: Understanding Urbanisation and its Consequences Różalski, J. 2012. Miliony topione w aquaparkach. Wspólnota, 7.03.2012. Retrieved from http:// www.wspolnota.org.pl/aktualnosci/aktualnosc/miliony-topione-w-aquaparkach/ Sethi, Rajiv and Rohini Somanathan. 2004. “Inequality and Segregation”. Journal of Political Economy, vol. 112 (6), pp. 1296-1321. Śleszyński, P. 2013. Delimitacja Miejskich Obszarów Funkcjonalnych stolic województw. Przeglad Geograficzny, 85(2), 173–197. Swianiewicz, P. 2016. Współpraca międzygminna - formy, zakres, motywacje. Samorząd Terytorialny, 5, 11–31. Tosics, I. 2015. Integrated Territorial Investment – a Missed Opportunity? Paper presented at: Challenges for the New Cohesion Policy 2014-2020 2nd Joint EU Cohesion Policy Conference Riga 2 – 4 February 2015 van der Zwet A, Miller S and Gross F. 2014. A First Stock Take: Integrated Territorial Approaches in Cohesion Policy 2014-20. IQ-Net Thematic Paper 35(2), European Policies Research Centre, University of Strathclyde, Glasgow. van der Zwet, A. and Mendez, C. 2015. Towards a Europe of the Localities? Integrated place-based approaches in Cohesion policy in 2014-20 and beyond. Paper presented at: Challenges for the New Cohesion Policy 2014-2020 2nd Joint EU Cohesion Policy Conference Riga 2 – 4 February 2015 van der Zwet A., Bachtler J., Ferry, M., McMaster, I., & Miller, S. 2017. Integrated territorial and urban strategies: how are ESIF adding value in 2014-2020? Final Report. Brussels. Wolanski, M. 2018. (Ed.) Ewaluacja Systemu Realizacji Instrumentu ZIT w Perspektywie Finansowej UE December 2019