REGIONAL COMPETITIVENESS OPERATIONAL PROGRAMME

13th SECTORAL MONITORING COMMITTEE MEETING

Ministry of Science, Industry and Technology

28 November 2013 / Adıyaman

AGENDA

1. Introduction and Adoption of the Agenda a) Introductory Remarks (HOS, EC)b) Approval of the Minutes of the previous SMC and the Agenda of the

Meeting (HOS, EC)

  09.00 - 09.15

2. Information on Audit Related Issues (Audit Authority)  09.15 - 09.30

3. Information on Programminga) 1st project package (OS)b) 2nd project package (OS)c) 3rd project package (OS, EIF)d) 4th project package and individual projects (OS)

 09.30 - 10.00

4. Information on Procurement and Implementation a) Tendering and contracting (OS)b) Implementation (OS)c) Absorption (n+3) and disbursement forecasts (OS)

 10.00 - 10.45

5. Information on Technical Assistance and Communication Activities a) Technical assistance activities (OS)b) Communication activities (OS)

  10.45 - 11.15

6. Information on Monitoring Report and Monitoring Sheets (OS)  11.15 - 11.25

7. Information on IPA II Programming (EC, NIPAC)  11.25 - 11.45

8. AOB and Indicative Date of the Next SMC Meeting   11.45 - 12.00

9. Lunch   12.00 - 13.00 

• 1st project package

• 2nd project package

• 3rd project package

• 4th project package

• Individual projects

• Overall Assessment

PROGRAMMING

TOTAL BUDGET: 113.091.629 €

Establishment of 3 Business Incubators in Selected Regions and Development of a Network among

Incubators in Turkey, KOSGEB

Establishment of Innovation Centre for Food- INNOFOOD CENTER, TUBITAK

Establishment of 3 Technology Development Zones, MoSIT-DG for Science and Technology

Winter Tourism Corridor in Erzurum, Erzincan and Kars, Ministry of Culture and Tourism

Enlargement of the European Turkish Business Centres Network to Sivas, Antakya, Batman and Van,

TOBB

Empowering SMEs for networking and inter-regional cooperation, Ministry of Economy

Technical Assistance + Publicity, MoSIT – RCP-CID

TOTAL NUMBER of OPERATIONS: 11

APPROVED OPERATIONS: 10

1st PROJECT PACKAGE

TÜBİTAK, The Scientific and Technological Research Council of Turkey

INNOFOOD - MAJOR PROJECT

First Submission of the Documents – 26.02.2010 Admissibility Letter –

23.04.2010 Comments from the EC – 11.10.2010 Second Submission of the Documents – 29.07.2011 Comments from the EC – 22.03.2012 Meeting with EC Representatives –

14.09.2012 Unofficial Submission of Revised Docs. – 22.10.2012 Unofficial Submission of Revised Docs. – 12.04.2013 Third Submission of the Documents – 24.09.2013

1st PROJECT PACKAGE

Prioritized Projects by the call: 47

Current Number of Projects: 36

Approved Projects: 32

OIS in Preparation: 4

Total Budget of Approved Projects: € 217.653.267

2nd PROJECT PACKAGE

2nd PROJECT PACKAGE – PLANNING (ind. 28 MEUR)

Measure Name of the Proposal ERA Status Indicative Budget (€)

2.2

Activation of Dairy Products Cluster in TRA2 Region, and Establishment and Operationalisation of a Whey Processing Plant (WPP) in Kars

Kars Governorship

Submitted to EUD on 01/11/2013

9.988.405

1.1

Activation of Malatya Apricot Cluster and Strengthening Foundations and Infrastructure of the Cluster

Malatya Governorship and Malatya Commodity Exchange

Submitted to EUD on 21/11/2013

9.740.274

1.3

Establishment and Operationalisation of an Applied R&D and Service Centre, specialized on Food Industry, at Çankırı Karatekin University

Çankırı Karatekin University

OIS in preparation

(estimated submission:

4th Q of 2013)

3.797.442

1.4Improvement of Winter Tourism Infrastructure in Yalnızçam, Ardahan

Ardahan Special Provincial Administration

OIS in preparation

(estimated submission:

4th Q of 2013)

4.500.000

3rd PROJECT PACKAGE

• 51.15 M.€ IPA Contribution• 900 M. € Credit Volume for SMEs• Under implementation• 6 Steering Com. held.• KGF Capacity Building phase II started Q1 2013• Capacity Building for banks kick-started Q3 2012• Capacity Building for DGIT / MoCT started Q4 2012• 4900 SMEs supported, 390 MEUR credit provided

Greater Anatolia

Guarantee Facility - GAGF

•16.3 M. € IPA Contribution•Contribution Agreement - 31.08.2011•Official launch of the project – 19.01.2012•Publication of Call for Expression of Interest - 20.01.2012•7 eligible applications by deadline -20.03.2012•Abraaj Capital selected by the Investment Committee in July 2012•Legal negotiations with Abraaj Capital-concluded in September 2013• Official announcement of Fund Manager - 29/11/2013

G-43 Anatolian Venture Capital Fund

• 30 M.€ IPA Contribution

• Offical Submission to EC - 23.11.2012

Technology Transfer

Accelerator (TTA) Fund

4th PROJECT PACKAGE

Number of Projects : 11

Approved Projects : 7

OIS in Preparation : 4Total Budget of

Approved Projects : € 53.176.629

Measure Title of the OperationEnd Recipient of

AssistanceStatus

Indicative Budget (€)

1.3Establishment of Nonwoven Research & Development Centre

Silkroad Dev.Agency (İKA)

Submitted to EUD on

11/11/20139.634.330

1.4Kars City with its Own Historical Identity

Serhat Dev.Agency (SERKA)

OIS in preparation

(estimated submission: 4th

Q of 2013)

9.500.000

1.1Sea Food Processing and Storing Center

North Anatolia Dev.Agency (KUZKA)

OIS in preparation

(estimated submission: 4th

Q of 2013)

9.510.664

4th PACKAGE – PLANNING (IND. 28 MEUR)

First Submission of the Documents – 29/08/2013 1st round of Comments from the EC – 09/09/2013

Reply to EC Comments – 03/10/2013

Admissibility Letter – 27/09/2013

4th PROJECT PACKAGE

SAMSUN LOGISTICS CENTER Major Project

MeasureTitle of the Operation End Recipient of Assistance Location Status Indicative

Budget (€)

1.4Sustainable Tourism Development in Kaçkar Mountains National Park

Ministry of Forestry and Hydraulic Works

Rize

OIS in preparation

(Estimated Submission:

Q4 2013)

9.500.000

OPERATIONS SUBMITTED BY THE NATIONAL PUBLIC BODIES-PLANNING (IND. 9.5 MEUR)

APPROVED OPERATIONS FROM THE LAST SMC MEETING

Name of Proposal Location Budget  (€) Approval Date Package

Establishment of Carpet Excellence Centre

Gaziantep 8.907.658 28/08/2013 4th

Establishment of National Cluster Academy

Ankara 7.655.059 20/11/2013 4th

Establishment and Operationalisation of a Lab Services Unit at the Hazelnut Research Station in Giresun

Giresun 2.828.204 20/11/2013 2nd

Kommagene Nemrut Tourism Oriented Revival Project (KN-TOC)

Adıyaman 6.896.831 20/11/2013 (via e-mail) 2nd

Sivas Industry Incubator Center Project (ISGEM) Sivas 7.190.305 21/11/2013 4th

Total Number of Operations : 63

Total Number of approved operations : 52

Operations in preparation : 11

Total Budget of OP(EU+TR) : 551.490.025 €

Total Volume of Project Portfolio : ind. € 603 mil.

Total Budget of Approved OISs : ind € 431 mil. (77% of OP Budget)

OVERALL ASSESSMENT

(Total Budget: ind 603 MEUR)

WHOLE OPERATION PORTFOLIO

Number of Approved OIS

83%

Number of OIS in Prepara-

tion17%

Number of Approved OIS 52

Number of OIS in Preparation 11

Total 63

Priority 1: Improvement of Business Environment(Budget. ind 526 MEUR)

PROGRESS BY PRIORITY AXES

Number of Approved OIS 41Number of OIS in Preparation 10

Total 51

Number of Approved OIS; 80%

Number of OIS in Prepa

ra-tion; 20%

Priority 2: Strengthening of Enterprise Capacity and Foster Entrepreneurship (Budget: ind. 50 MEUR)

PROGRESS BY PRIORITY AXES

Number of Approved OIS 9

Number of OIS in Preparation 1Total 10

MEASURE BASED PROJECTS IN TARGET REGION

15 Growth Centers

Provinces not covered:• Artvin• Iğdır• Ağrı • Şırnak• Kilis• Tunceli

1.1 1.3 1.4 2.1 2.2

• Tendering and contracting• Implementation• Absorption (n+3) and disbursement forecasts

PROCUREMENT and IMPLEMENTATION

TENDERING and CONTRACTING

Realization up to date 2014 20150

20

40

60

80

100

120

41

107

1623

55

7

33

103

3033

80

56CNShortlistEvaluationCont.Sign.

Number of Contracts Signed/Planned to be Signed

Realization up to date Foreseen by the end of 2013 (Cumulative)

2014 20150

5

10

15

20

25

2 2

0 0

23

0 0

8

10

23

6

89

24

78 8

15

18

5 5

15

25

FwCDirect ContractSupervisionWorksTASupply

REALISED and FORESEEN CONTRACTED BUDGET

€ 367million is foreseen to be contracted by the end of 2015.

125,122,444

4,483,313

150,827,444

86,766,391

2013 Realized*2013(Nov-Dec) Foreseen**20142015

* Budget of Signed Contracts up to date** Budget of Contracts expected to be signed in November-December 2013

FINALIZED CONTRACTS

 Totally 9 Contracts

 Type of Contracts

Works SupervisionTechnical

Assistance / FW Supply

Total(€)

Number of Contracts

2 (taking over)

0 2 5 9

Budget(€)

5.101.349 0 187.968 865.470 6.154.787

CONTRACTS UNDER IMPLEMENTATION

 

Totally 24 contracts

 Type of Contracts

Works SupervisionTechnical

assistance Supply DirectGrant Total

Number of Contracts

6 8 8 0 2 24

Budget(euros)

23.111.922 4.010.435 24.387.405 0 67.457.895 118.967.657

PROJECTS COMING TO IMPLEMENTATION

Totally 45 project-152 components

 Type of Components

Works Supervision Technical

Assistance Supply

Total # of Components

Budget (€)

2013 3 6 3 - 12 22,214,132

2014 24 23 15 15 77 150,827,444

2015 7 6 18 25 56 86,766,391

2016 1 - 3 3 7 21,433,222

Total # of Components

35 35 39 43 152 281,241,189

Budget (€) 128,365,211 15,079,391 76,603,805 61,192,782

YEARLY BUDGET ALLOCATION for RCOP (EU BUDGET)

Calendar Year

Allocated EU Budget

Decommitment Revised EU Funds after de-commitment

Spending Year (n+3)

2007 41,900,000 0 41,900,0002008 43,500,000 0 43,500,0002009 54,800,000 11,620,685 43,179,3152010 71,430,000 0 71,430,000 41,900,0002011 88,020,000 0 88,020,000 43,500,0002012 89,016,598 0 89,016,598 43,179,3152013 91,720,588 0 91,720,588 71,430,0002014 88,020,0002015 89,016,5982016

2017 91,720,588

TOTAL 480,387,186 11,620,685 468,766,501 468,766,501

GENERAL VIEW (EU + TR CONTRIBUTION)

Total Number

Total Budget

(€)

Number of Approved/Signed

Total Budget of Approved/signed

(€)%

Project (OIS) 63 602.712.787 52 431.103.005 71,52

Contract 224 602.712.787 33 125.122.444 21,04

Payment N/A 551.000.000 N/A 92.340.910 16,75

Cut -off date:15 November 2013

PAYMENT CYCLE for 2013

PAYMENTS (EU Contribution)

Paid (until

November)

To be paid (01.11 – 31.12.-2013) TOTAL

2010 27,259,577

2011 16,710,640

2012 20,226,435

2013 12.633.366 6.258.597 18.891.963

Major Project TTA

25.500.00 44.391.963

Minimum amount of expenditure needs to be declared to the EC by the end of 2013 is 71,4 m€.27 m€ is expected to be decomitted in 2013. If the TTA is not approved by the end of the year, 52,5 m€ will be decomitted. (TTA Total Budget: 30 m€, EU Contribution:25,5 m€)

SUMMARIZED ABSORPTION (N+3)

2010 2011 2012 2013 2014 2015 2016 2017 After 2017 TOTAL

N+3 Expenditure Requirements (per year)

41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 89,016,598 0 91,720,588 0 480,387,186

Pre-finance* 42,060,000 22,215,000 64,275,000 64,275,000

N+3 Expenditure Requirements (cumulative)

-160,000 21,125,000 75,925,000 147,355,000 235,375,000 324,391,598 324,391,598 480,387,186 0 480,387,186

Disbursed and to be disbused (per year) 41,633,784 8,466,058 462,963,806

Disbursed and to be disbused (cumulative) 27,259,577 43,920,217 64,304,315 108,588,615 155,190,817 288,423,841 412,863,964 454,497,748 462,963,806 462,963,806

De-commitment risk (per year) 0 0 -11,620,685 -27,145,700 -41,417,798 0 0 0 -80,184,183

124,440,12327,259,577 16,710,640 20,226,436 44,391,962 46,602,203 133,233,024

Disbursement Forecast (EU Contribution) - November 2013

DETAILED ABSORPTION (N+3)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (ineligible)

2019 (ineligible)

TOTAL PRIORITY I 27,200,000 13,855,000 19,383,932 12,014,653 38,646,619 103,943,719 46,256,581 12,372,244 1,526,635 275,199,383

Measure 1.1. 1,238,257 5,265,419 19,423,291 82,566,810 28,758,775 6,664,375 316,944 144,233,870Measure 1.2. 27,200,000 13,855,000 16,284,211 57,339,211Measure 1.3. 1,861,465 5,246,234 14,252,580 15,108,972 9,961,498 2,872,268 384,040 49,687,058Measure 1.4. 1,503,000 4,970,748 6,267,936 7,536,308 2,835,602 825,650 23,939,245PRIORITY II 1,219,338 271,747 4,136,326 5,306,751 6,823,979 4,899,438 1,432,488 174,399 24,264,465

Measure 2.1. 380,537 2,241,193 3,428,316 1,739,961 1,596,482 826,301 174,399 10,387,188Measure 2.2. 838,801 271,747 1,895,133 1,878,435 5,084,018 3,302,956 606,187 13,877,278

PRIORITY III 59,577 1,636,302 570,757 2,740,983 2,648,833 2,751,265 2,470,964 628,788 13,507,467

Measure3.1. 59,577 1,636,302 570,757 2,407,545 2,182,020 2,284,452 2,070,838 628,788 11,840,277Measure 3.2. 333,438 466,813 466,813 400,126 1,667,190OHTER (non approved project)

0 0 0 25,500,000 0 19,714,061 70,813,141 27,200,264 8,059,420 406,638 151,286,886

1st Priority 0 0 0 25,500,000 0 17,354,156 65,190,016 24,963,179 6,518,198 406,638 22,817,572

2nd Priority 0 0 0 0 2,359,905 5,623,125 2,237,085 1,541,221 31,558,185

3rd Priority 0TOTAL (per year)

41,633,784 8,059,420 406,638

Certified to NF by RCP-CID*

27,259,577 43,970,217 64,196,653 108,588,615 155,190,817 288,423,841 412,863,964 454,497,748 462,557,168 462,963,806 462,557,168

Certified to EC by NF27,259,577 43,970,217 64,304,315

Allocated fund for RCOP 41,900,000 43,500,000 43,179,315 71,430,000 88,020,000 89,016,598 91,720,588 468,766,501

N+3 Expenditure Requirements (per year)

41,900,000 43,500,000 54,800,000 71,430,000 88,020,000 89,016,598 0 91,720,588 480,387,186

Pre-finance* 42,060,000 22,215,000 64,275,000

Expenditure paid and declared cumulative

-160,000 21,125,000 75,925,000 135,734,315 196,608,615 244,207,415 244,207,415 400,203,003 400,203,003 400,203,003

N+3 Gap (Cumulative) 27,419,577 22,845,217 -11,620,685 -27,145,700 -41,417,797 44,216,426 168,656,549 54,294,745 62,354,165

Amount to be Settled Net between NF and EC** -107,662

Assumptions:TTA project under 1.2. will be approved in 2013 (EU Budget € 25.500.000)

Annotations:*Includes planned expenditures as well

**This amount indicates to the difference between the amount certified by RCP-CID calculated regarding the project specific EU grant rates and amount certified by NF calculated regarding the 85% general EU grant rate.

"Expenditure paid and declared cumulative" line is formulated to project financially adjusted value, which is purified from the previous years decommitment.According to the current state of play, at the end of the program:

Total Decommitment: 80,184,182.94

Extra Fund Need: 62,354,164.91

Disbursement Forecast (EU Contribution) - November 2013

27,259,577 16,710,640 20,226,436 44,391,962 46,602,203 133,233,024 124,440,123 462,557,168

TECHNICAL ASSISTANCE ACTIVITIES

Result 1: Achievements in Reporting Period

• TA to RCP-CID ToRs (TA II, Project Preparation Facility – PPF and Multi Annual Plan for Direct Expenditure) have been prepared. Shortlist for TA II has been submitted to the EUD. TA II Project planned to be start in May or June 2014.

• Last two Team Building events for RCP-CID staff delivered in

November 2013 in Kızılcahamam.

• QAC Department – complete revision of the 19 Manual Chapters.

Result 1 - Achievements in Reporting Period (2)

• Assistance in the preparation of the 13th Sectoral Committee Meeting (SMC)

• Trainings:

• 1 training on Internal control, delivered for RCP-CID staff, with 10 participants (11 to 14 November 2013)

• 1 training on Supply Contracts, delivered for RCP-CID Procurement Division staff with 10 participants (27 and 28 of November 2013)

Result 2 - Achievements in Reporting Period

• 1 additional training to ERAs on Procurement delivered during the period (12 to 15 November 2013), with a total of 35 participants.

• «Procurement Guidelines For End Recipients» to be distributed to the participants during education, were revised

Result 3: Achievements in Reporting Period

• 10 minor projects of the 4th Package have been / are being prepared, of which 7 have been approved by the EUD.

• One major project – Samsun Logistics Centre – has been prepared and has received some comments from the EUD.

• Support to Implementation Division proceeding, as foreseen, with 2 NKED.

Result 3: Achievements in Reporting Period

Tender Dossier Preparation

• GETAM project has been prepared and delivered by the design team.

• Currently working on two additional tender dossiers; Yozgat İŞGEM and Trabzon/Erzurum Whey Powder expected to be delivered 10th of December 2013.

• An additional two projects should be prepared by the 14th of February 2014: Bingöl and Cluster Academy.

Result 4: Achievements in Reporting Period

• Regular monitoring and updating of the Procurement Plan and support / coaching on all procurement documents.

• Daily on the job coaching and support to FCD in financial operations & accounting (Tax exemption Regulation, VAT information forms, Withholding Tax issues, etc).

COMMUNICATION ACTIVITIES

Project Duration: 36 Months

Started on 21 August 2013-Ending on August 2015

OVERALL OBJECTIVE

• To support RCOP goal of reducing regional socio-economic

disparities

• To increasing the competitiveness of the Turkish economy and

making it connverge with that of the EU.

TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

PURPOSE

• To increase the public awareness and visibility of EU actions in Turkey in support of

regional development and business development, through IPA and particularly RCOP.

• To allow for a wider participation of target groups in RCOP funding opportunities,

particularly at the local level.

• To help generate a larger number of high-quality projects and allow a high rate of yearly

disbursement of funds under RCOP.

RESULTS

• Improve and design the public image of the RCOP and of the RCP-CID.

• To increase target groups information concerning RCOP actions, projects and financing

opportunities and to ensure transparency and accessibility of information.

• To ensure sustainability of this programme outputs, particularly by training RCP-CID

Publicity Division staff in publicity/visibility operations.

• To review the CAP with a view to upgrading and improving the plan.

TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

KICK OFFThe Project had its kick off meeting on 22 August 2013

INCEPTION PERIOD (22 August-22 October 2013)• Fact finding missions were carried out with stakeholders and relevant projects as well as in

depth meetings with the RCP-CID.

• One fact finding mission was carried out to Samsun with the attendance of TA and PD, to 3

major projects in Samsun– Samsun Logistics Project– Increasing the Competitiveness of Middle Black Sea Region– Samsun International Accredited Metal Metrology and Calibration Laboratory

• An online questionnaire is developed and distributed to a sampled group of current beneficiaries (20)

• Due to urgent need for an identity for the programme, the activity for developing an identity for the

Operational Programme is brought forward to inception phase and preliminary activities started.

TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

INCEPTION PERIOD

• A workshop was organised with extensive participation

from RCP-CID departments on visual identity.

• A design brief was developed in line with this and a set of

logo options together with options for slogan and stage

name is produced and shared with the wider team.

TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

FIRST INTERIM PERIOD ACTIVITIES

• Development of RCOP Visual Identity

• Production of promotional materials and Web site analysis and

recommendations

• RCOP Communications Network

• Media Monitoring enacted

• PD training started

• Training Analysis for End recipients

• Analysis for Help Desk

• CAP Updated

TECHNICAL ASSISTANCE FOR PUBLICITY, INFORMATION and PROMOTION of RCOP

OTHER COMMUNICATION ACTIVITIES

Other Activities

- New IPA staff is oriented

- News and documents were updated on Web-site

- Information requests were answered

- Attendance to «3rd Industry Council» held on November 20-22, 2013 in Ankara

- Attendance to Closing Ceremony of «SME Networhing Project» held on November 22, 2013 in

Ankara

MONITORING ACTIVITIES

IPA II PROGRAMMING

THANK YOU FOR YOUR ATTENTION

Ministry of Science, Industry and TechnologyRegional Competitiveness Programme

Coordination and Implementation Directorate

e-mail: ipa@sanayi.gov.tr

Web address: ipa.sanayi.gov.tr