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2007 – 2013 European fund absorption – lessons learnt

Photo: www.europarl.europa.eu

Bulgaria has absorbed a mere 60 percent of the 2007 – 2013 European financing earmarked for the country to date. The reasons are insufficient information, lack of capacity and control, cumbersome bureaucratic procedures, failure to comply with deadlines on both sides, poor coordination, misappropriation etc. These shortcomings were formulated in a survey conducted under the patronage of Zinaida Zlatanova, Deputy Prime Minister in charge of European funding. The aim is to improve the absorption rate over the next programming period 2014 – 2020 by finding the critical points for beneficiaries in the implementation of European projects, said for Radio Bulgaria Maria Dimitrova, head of the Information and Management Systems for EU Funds Directorate within the Administration of the Council of Ministers of Bulgaria.

What are the lessons learnt and what steps have to be taken from now on?

“We now have to reduce the number of documents beneficiaries are required to provide – that is a major burden for them – and we must work on this together. We have made progress in this and must continue throughout the next programming period. This money is intended for Bulgaria and must be used to help the country’s development. What we have learnt is that we must introduce electronic capability for more rules and give beneficiaries a better chance of applying and compiling their reports electronically. This is part of the 2014 – 2020 Partnership Agreement with the European Commission and will be implemented within this programming period. For some of the programmes we have already introduced electronic applications and reports on the absorption of European funds. We now have to include the other programmes as well.”

The lack of working capital for the implementation of a given project, repeated reports using the same documents, complicated procedures for the selection of contractors and for coordination  - these are some of the difficulties encountered, especially by small and beginner companies and organizations. One such organization is Philanthropy NGO from Pazardjik, with manager Nadezhda Kouzermanova, which is building a care home for people with mental problems with European funding. It is the first of its kind in the town and is one of three social services included in the municipal strategy. This kind of service is very much in demand, people have been asking about the home from Strelcha, Haskovo, from Sofia even. But there are so many problems that people who have tried once then declare “Never again!” Mrs. Kouzermanova says:

“During the information campaign we heard promises that we would be given help every step of the way, i.e. that we should put our questions beforehand so there would be no complications for us or for the administration. As it turned out the regional programme coordinator in Pazardjik was too busy because he was monitoring a great many projects, or on leave or sick. “Read the instructions,” was his advise to us. For lack of information at the initial stage we had to draw up each document three times so that the ensuing report would be approved. Can you image the work that goes into that and the nerves that cost us?  We thought there was something wrong with us. But it turned out there were others who couldn’t get it right the first time, exactly like us. That was our first big problem and it stayed with us throughout the implementation of the project. The second problem was connected with the so-called report checks. The reports are first checked by the town regional coordinator, then by an independent regional coordinator from another region – that is how the system under the Human Resources Development programme works. In Sofia they are checked by the monitoring body – the Agency for Social Assistance. Our project for selected for monitoring by the Social Ministry and each of our reports was checked 4 times; the serious comments came at the first three levels within the system. But sometimes the recommendations would be contradictory and you never know what to do. You have to make a choice risking that at the next check your financing will be cut off. There is no one to take responsibility but yourself.”

However the biggest problem came after that, when the so-called sustainability of the project had to be ensured, Nadezhda Kouzermanova goes on to say.

“We were one step ahead in the sphere of social services in Bulgaria – they take place mostly in municipal or state-owned buildings. But for several years the municipality failed to provide such a building for the care home. So, we made an unorthodox decision – people who use the service we offer with no family or heirs established usage rights for their homes. This is a form of usage that is accepted by the EU. The Agency gave its approval and provided us with financing. So we renovated and furnished two apartments in the town centre – in exchange the owners let two other people live there. The project was completed successfully. But when we had to pass over to state-delegated activities, the municipality refused us funding. But logic dictates that when you launch something new that is important to people on financing from the EU, the state should take over and support it afterwards. The agency provided us with funding the first two years but the municipality returned the money as there was European funding. And just when we needed financial assistance from the state it refused us. The decision was made for shared use. I drew up the papers; this kind of partnership is applied in Sofia, Stara Zagora and other towns. There the organizations have managed to develop their own facilities and lay no claim to the state or the municipality. And their municipalities say: “Excellent, we are increasing our capacity.” Our municipality however put a spoke in the wheels and did not sign a contract. And we still don’t know why.”

With the help of the international organization for the protection of people with mental disabilities, the association is now suing the mayor for discrimination. According to lawyers, a refusal when the procedure has been given the go ahead and when the partners are people with disabilities is a form of discrimination. There is no court ruling yet, but the association has had no financing for the service for three years; the contract under the European project stipulates that it must cover a period of five years. A vicious circle, a challenge and a lesson to be learnt for the sake of the country’s European future over the next programming period.

English version: Milena Daynova




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