COHESION FUND
MONITORING COMMITTEE
Jurijs Spiridonovs
Ministry of Environment
Head of Project Development Department
11 April 2008
Allocation of CF Funding
Funding available 2000 – 2006
EUR 355.38 M*
Funding approved 2000 – 2006
EUR 355.38 M*
Total eligible expenditure
EUR 574.68 M
Total planned project funding with
ineligible expenditure and
value added tax
EUR 695.82 M
*to cover eligible costs
2
Status of Disbursements to Contractors
As on 01/11/2007
as
on 25/04/2006
DISBURSEMENTS MADE
(eligible expenditure):
DISBURSEMENTS
212,237,520.43
MADE
(eligible EUR
expenditure):
88,765,403.82
VAT 18% EUR
EUR 28,690,647.15
TOTAL
VAT 18%
EUR 240,928,167.58
EUR 7,410,397.56
TOTAL
EUR 96,175,801.38
From 01/11/2007
to 31/03/2008
as on 25/09/2006
DISBURSEMENTS MADE
DISBURSEMENTS
(eligible expenditure):
MADE
EUR(eligible
69,980,014.47
expenditure):
103,853,770.17 EUR
VAT 18%
EUR 12,596,402.60
TOTAL
VAT 18%
EUR 82,576,417.08
EUR 9,637,367.31
TOTAL
EUR 113,491,137.48
3
Disbursements to Contractors in 2003 - 2010, M
EUR (total expenditure)
250
216,92
200
154,42
153,96
150
100
65,99
52,04
50
30,00
12,22
10,27
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
4
Disbursements to Contractors in 2008, M
EUR (total expenditure as on 31/03/2008)
35 000
30 469
30 000
26 297
25 346
25 000
23 888
22 255
20 000
21 708
19 574
17 242
15 000
12 790
10 000
8 691
5 987
5 000
2 672
0
Jan
Feb
Mar
Apr
Mai
Jūn
Jūl
Aug
Sep
Okt
Nov
Dec
5
Disbursements claimed and received from EC
by 31 March 2008
Tūks t. EUR
100 000
87 689
90 000
74 600
80 000
2 650
70 000
60 000
63 206
50 000
32 592
40 000
1 193
71 950
30 000
9 226
20 000
33 586
31 399
10 000
0
4 073
6 475
7 740
2001
2002
2003
Saņemts no EK
15 257
13 483
2004
Pieprasīts EK, bet nav saņemts
2005
2006
2007
2008
Gads
Papildus plānots pieprasīt līdz 2008.gada beigām
6
Status of Agreements
210
197
EUR 485 M
(total costs)
EUR 504 M
(total costs)
Piegādes
Darbi
106
97
Pakalpojumi
Kopā
70
70
34
30
01.11.2007.
31.03.2008.
7
Increase in number of agreements signed, 2002 –
2008
250
200
69
70
150
Pakalpojumi
47
100
Būvdarbi
104
106
Piegādes
51
50
31
16
3
7
9
3
11
4
2002
2003
2004
0
15
29
34
34
2007
2008
6
2005
2006
8
Physical progress
Status of agreements as on 31/03/2008
109
101
65
41
38
32
30
20
16
4
Pabeigtie līgumi
(219 milj. EUR)
2
Realizācijā esošie
(284 milj.EUR)
Pakalpojumi
Piegādes
Būvdarbi
2
Plānotie iepirkuma konkursi 2008
(166 milj EUR)
Kopā
9
COMPLETED PROJECTS (I)
Project implementation completed, final report and final expenditure
statement submitted to the European Commission:






Solid waste management in Ventspils region, No.2000/LV/16/P/PE/004
Solid waste management in Ziemelvidzeme region, Latvia, No.2001/LV/16/P/PE/006.
Solid waste management in Ziemelvidzeme region, stage II, No.2006/LV/16/C/PE/001.
Development of water supply and sewage services in Ventspils,
No.2000/LV/16/P/PE/003;
Solid waste management in Liepaja district, No.2001/LV/16/P/PE/005,
Development of water supply and sewage services in Jelgava,
No.2000/LV/16/P/PE/002
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COMPLETED PROJECTS (II)
Project implementation completed, winding-up report and final declaration of
expenditure submitted to the Ministry of Finance:

Jurmala water services development, No.2001/LV/16/P/PE/008

Technical assistance for environment projects in Latvia, No.2000/LV/16/P/PA/001



Development of water supply and sewage services in Riga, No 2000/LV/16/P/PE/001
Solid waste management in Austrumlatgale region, No.2002/LV/16/P/PE/010
Solid waste management in Dienvidlatgale region, No.2002/LV/16/P/PE/011
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AUDITS AND CHECKS
 In December 2007 there were 15 audits carried out in
the Ministry of Environment, including system audits,
procurement and payment audits, sample checks of
expenditure and checks of declarations of final project
expenditure conducted by the MoEn Internal Audit
Department, MoF Financial Control Department, State
Audit Office, KNAB and audit companies.
 From 01/07/2007 to 31/12/2007 the Ministry of
Environment conducted 18 on-the-spot checks
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MAIN PUBLICITY EVENTS (I)
In 2007 it is already the fourth time that the Ministry
of Environment presented the annual award
„Ābols 2007” (Apple 2007) to municipalities for
their contribution in implementation of projects
in the area of environmental infrastructure and
environmental protection.
In 2007 there has been a higher activity of the
municipalities and interest to participate in this
competition - twice as much applications were
received than the year before, in total 55.
Prizes were awarded in categories of cities, towns,
agglomerated municipalities and rural
municipalities.
Prize award ceremony was held on 22 November
2007.
13
MAIN PUBLICITY EVENTS (II)

On a regular basis, the Ministry of Environment
informs the society about main events in the
framework of Cohesion Fund projects, incl.
signing of works, services and supplies
agreements, commissioning of construction
objects and other important events.

On 05/03/2008 MoE’s Guidelines for
implementation of publicity activities to the
Cohesion Fund implementation bodies and final
beneficiaries were updated, incl. samples for
informative and publicity plan, memorial planks,
press releases.
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TOPICAL ISSUES AND RISKS

There is a risk that implementation of the project Development of Ventspils district heating
system will not be completed by December of 2009. The same risk exists for the project
Development of water services in Riga, stage III, however in this project 5 procurement
agreements have been signed and construction is in progress.

The Cabinet of Ministers on 12 February 2008 adopted the Decision No.9 to allocate state
budget funding to cover increase in costs for the projects Development of water services in the
river basins of Eastern Latvia, Solid waste management in Piejura region and Maliena region
solid waste management, and on 19 February 2008 - the decision No 11 to allocate state budget
funds for the projects: Development of water services in Daugavpils, stage II, Development of
water services in Olaine and Jaunolaine (approx. EUR 30 M in total), as well as supported in
principle allocation of state budget funds to the project Development of water services in
Ventspils, stage II.

Issues within the competence of municipalities (ownership rights, approvals from responsible
institutions, etc.) significantly affect the implementation progress of projects, e.g., Development
of water services in Riga, stage III.

There is a problem of regulatory instruments (incl. guidelines), recommendations and
instructions in the competent authorities are developed after the specific actions within the
projects have taken place (e.g., in case of EC audit opinion on the project Solid waste
management in Dienvidlatgale region), or during project implementation, when it is almost
impossible to make corrective actions according to the new requirements.

Problems related to attraction of qualified personnel for work in state and municipal institutions
affect the capacity of institutions involved in the management of EU Funds.
15
SOLUTIONS TO PROBLEMS

To decrease the impact of increase in construction costs on projects being
implemented the Ministry of Environment in cooperation with final beneficiaries
carry out modifications to technical specifications of procurement tenders, reducing
scope of work that does not affect the technological process and project objectives.

To increase the competition and reduce project costs the Ministry of Environment
together with final beneficiaries by elaborating procurement strategy for the project,
chooses the optimum amount to be procured (dividing into lots or joining into one
procurement). At the same time comparison is made between the results of the
tender and the planned agreement value (incl. by inviting competent experts), in
case of necessity launching tenders repeatedly.

The risks identified in regard to delays in particular projects are thoroughly
analysed and in cooperation with final beneficiaries solutions are found for averting
and reducing these risks and problems.

For projects in which increase in costs has taken place, from now on during drafting
of the winding-up report a repeated cost-benefit analysis will be carried out.
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ATTENTION!
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