Indicative Programme for the Tacis Cross-Border Co-operation (CBC) Programme Countries concerned: Russia, Belarus, Ukraine, Moldova

Transcription

1 Indicative Programme for the Tacis Cross-Border Co-operation (CBC) Programme Countries concerned: Russia, Belarus, Ukraine, Moldova 1. INTRODUCTION TACIS IN RELATION TO CROSS-BORDER CO-OPERATION PROGRESS OF REFORMS IN RELATION TO CBC OTHER EXTERNAL ASSISTANCE PROVIDERS AREA OF CO-OPERATION DEVELOPMENT OF INFRASTRUCTURE NETWORKS AREA OF CO-OPERATION PROMOTION OF ENVIRONMENTAL PROTECTION & MANAGEMENT OF NATURAL RESOURCES AREA OF CO-OPERATION SUPPORT TO THE PRIVATE SECTOR & ASSISTANCE FOR ECONOMIC DEVELOPMENT TACIS CBC SMALL PROJECT FACILITY REGIONAL ACTIONS BUDGET

2 1. Introduction As part of the requirements set out in the new Tacis Regulation (Council Regulation 99/2000 of 29/12/99) concerning the provision of assistance to the partner states in Eastern Europe & Central Asia, it is now necessary for all programmes, including multi-country programmes, to adopt an indicative programming approach. As part of this, for the first time the Commission is now producing a multi-annual Indicative Programme (IP) for the Tacis Cross-Border Cooperation Programme (CBC). The eligible countries for the Tacis CBC Programme are Belarus, Moldova, Russia and the Ukraine. Whilst the Strategy Paper is defining the areas of common interest between the Member States and the Partner States, the Indicative Programme provides a framework within which annual programmes for activity within Tacis CBC can be developed over the period This Indicative Programme sets out clear objectives and indicative budgets for each of these three areas of cooperation over the next four years ( ). The Indicative Programme has been produced by the Commission following the necessary consultation process with key stakeholders in the Tacis CBC. In developing the IP, full account has been taken of the past assistance provided to the Partner States in the framework of Tacis CBC. From 1996 until M were committed under the programme. More than 50% of this allocation was spent on projects in North-West Russia (including Kaliningrad). Ukraine has been the second largest beneficiary of the Tacis CBC programme (more than 20%) and Moldova and Belarus received both more than 10% of the general Tacis CBC allocation. Finally, it should also be noted that assistance in the period of is provided on the basis of the existence of the necessary elements for the continuation of co-operation through assistance, in particular in respect of democratic principles and human rights, as well as the obligations of the Partner States as set out in the Partnership & Co-operation Agreements. 2

3 2. Tacis in relation to Cross-Border Co-operation The Tacis CBC Programme is the object of a specific budget line with budgetary comments. It operates within a policy and legal framework set by the following: The Partnership & Co-Operation Agreements or PCAs (currently in force with with Russia, Ukraine and Moldova) the EU Common Strategies on Russia and Ukraine Council Regulation 99/ the new Tacis regulation. Moreover, given the geographical coverage of the programme, there will also be clear reference to the policy implications contained within the Action Plan for the Northern Dimension in the external and cross-border policies of the European Union and regional initiatives such as the Black Sea Convention as well as the Baltic Sea and Barents regional co-operation frameworks. Within this policy context programming will move from a primarily demand-driven approach to an increased emphasis on a long-term vision for partnership, based on the PCAs and the CSs (where available). Programming priorities will thus be based on a structured process of dialogue between the partner States and the EU, reflecting specific areas of common interest in the framework of the partnership objectives and mutual commitment to policy/programme priorities. With regard to PCAs, cross-border co-operation has been given great priority. Concerning the linkages with the programming process, particular attention will be given to the work of the PCA Sub-Committees and the priorities identified by them will be taken into consideration. The activities of these committees are still at an early stage, but over the coming years it is expected that they will provide valuable input into the programming process. On the basis of the EU Common Strategies the Tacis CBC Programme will give particular importance to regional and local administrations. Cross-Border Co-operation at the regional & sub-regional level, particularly in the framework of existing organisations and via the various fora for regional co-operation, provides a very valuable framework for practical and effective cross-border co-operation activities and infrastructure. Within the terms of the new regulation, cross-border co-operation will be promoted in the context of both the borders between the partner States and EU and between the partner States and Central European Countries (CEC). The Tacis CBC programme shall continue to primarily serve to: Assist border regions in overcoming their specific development problems Encourage the linking of networks on both sides of the border e.g. bordercrossing facilities Accelerate the transformation process in the partner States through their cooperation with border regions in the EU and CEC Reduce transboundary environmental risks and pollution. 3

4 In addition, in order to maximise impact, assistance shall be limited to three areas of cooperation. As set out in the Strategy Paper, for Tacis CBC these three areas will be : Development of infrastructure networks Promotion of environmental protection and management of natural resources Support to the private sector and assistance for economic development. A concerted and coherent approach is required to deal with many of the problems related to cross-border co-operation. This would imply deepening co-operation with the candidate countries and the new eastern neighbours in a wide range of fields (e.g. energy, economic development, environment, etc). The significance of the EU Acquis Communautaire on border management co-operation and efforts to develop efficient, secure and smoothly functioning borders between the enlarging EU and neighbouring countries is recalled as well. Co-operation in order to increase trade and remove local trade barriers should be focused on improving border-crossings. What is more, the Northern Dimension includes recognition that Kaliningrad deserves special attention because of its geographical situation, which presents a challenge for future cooperation and development. The Oblast, which Russia sees as a pilot region for the development of regional co-operation with the EU, will require particular attention to help it see the possible benefits of its enclave status. The Tacis CBC Programme has an important role to play in this. The broad policy context set out above leads the Commission to emphasise the following elements as paramount in the identification and selection of projects within the framework of the Annual Programmes : Support for projects benefiting from close integration with funding instruments operating in the border areas; in particular Interreg, and the Pre-Accession Instruments (Phare, ISPA and SAPARD), although also national/bilateral funds where appropriate. Within the 3 areas of cooperation identified, support for activities and projects having a clear cross-border cooperation component. This may include projects having a cross-border impact (such as environmental projects), but will particularly include cross-border projects involving direct and clear co-operation between partners from both sides of the border. Emphasis on the strengthening of the capacity of local/regional authorities and organisations to contribute to the development of cross-border co-operation and support for projects which include specific capacity-building measures. The specific form of these measures will depend on the lessons to be learned from the Capacity- Building project now being implemented. With regard to the instruments of co-operation, the principal form of assistance will continue to be provided via larger projects (minimum 1 M ). However, the demand for small-scale initiatives and the need to provide greater flexibility to enable matching with parallel funds requires that the Tacis CBC Small Project Facility continues to be supported during the forthcoming programming periods. Across the whole programme, traditional technical assistance will be increasingly complemented by the use of expertise from institutions and associations of enterprises, with more potential for long-term relationship. In particular, participation of experts who have gained experience of the transition process through their work in the process of Accession 4

5 will be encouraged. From an institutional point of view, Twinning between regional/local and (where appropriate) national administrations will be explored as a potential instruments for efficient cooperation and transfer of know-how. The Commission will investigate the possibility of making use of Pre-Accession Advisers (PAA) active in sectors where crossborder cooperation is a key issue, e.g. PAAs working on border management issues or on environmental legislation. Investment will continue to be promoted indirectly through efforts to improve the overall regional economic climate and to establish a conducive regulatory framework which has an impact at regional and local level. Appropriate forms of direct investments will also be considered on a case by case basis, for instance when a multiplier effect and additionality can be clearly demonstrated. The environment sector might receive investment support for the improvement of environmental infrastructure as long as it clearly meets the priorities outlined for that sector. According to the new Regulation a maximum of 20% of the total TACIS annual budget could be allocated to investment financing. Finally, in accordance with the new regulation, projects will also be designed increasingly in phases, with continued funding depending on the results of the first phase. This conditionality will apply to all forms of support. 5

6 3. Progress of Reforms in Relation to CBC As a Multi-country and multi-sector programme it is difficult to give a very precise overview of the progress of reforms in relation to the Cross-Border Co-Operation Programme, and as such this section will deal mainly with our general approach to these issues. Within the area of border crossings, it can be said that each of the four partner countries continues to show a commitment to the development of border infrastructure and equipment.this continued commitment, which manifests itself in high levels of demand for assistance from the Tacis CBC programme, provides a basis for intervention; what is now needed is to continue to develop progress in relation to the reform of practices and procedures which remain a blockage to real improvement in cross-border flows and effective border management. On questions of energy/telecommunications/transport networks, environment, and economic development, there are clearly specific issues within each of the eligible countries concerning the development of national policy and regulation which set the basic framework for progress. In many cases there is ongoing support from the Tacis programme and other donors to deal with these reform issues. Concerning the CBC programme, reference will be made to the development of reform within each of the eligible countries to ensure that activity is complementary to the reform process in each country. In particular, the relevant PCA subcommittees will be monitored and there will be ongoing consultation with the relevant Commission. 4. Other External Assistance Providers Given the broad geographical scope of activity undertaken within the Tacis CBC Programme it is difficult to provide a very specific outline of the activity of other external assistance providers. Clearly, in the programming of activity, full consideration is taken of complementarity with other providers, and at the project level there are various checks to ensure that any overlaps are avoided and that where possible there is effective synergy with other donor activity. This will normally be conducted as part of the consultation process with the relevant Commission services dealing with national programmes who actively participate in donor co-ordination groups in-country, and also with relevant national governments where appropriate (e.g. the Government of Finland with regard to the Russian-Finnish border). This country-based approach, drawing mainly on existing Commission structures, is seen as an appropriate response to the fact that donor programmes tend to be organised on a national basis. Where appropriate, the country-based approach will be complemented by the ongoing consultation with Commission services concerning sectoral activity where there is also valuable information about broader donor activity. Within certain sectors, such as economic development and environment, there is considerable activity by external providers. Moreover, as the process of accession develops we are seeing an increasing focus on activity in the western border areas of the NIS. This in part reflects an interest in the effects of enlargement, and also is driven by a high-priority being given by national and international donors to the relatively underdeveloped regions. This growth in funding means that the need for monitoring donor activity, and the potential for synergy, will increase in the forthcoming period. 6

7 5. Area of Co-Operation Development of Infrastructure Networks Within the new regulation the area of Development of Infrastructure Networks covers the following sub-categories of co-operation: transport networks telecommunications networks energy pipelines & transmission networks border crossings. Within the period covered by the Indicative Programme it is intended that, in principle, all four sub-categories will remain eligible for support during the programming process. On the basis of the agreed policy framework, and in the light of consultation, it is intended that a high level of assistance will continue to be given to the issue of border crossings. As with earlier assistance the major aim will be to contribute to the development of effective and efficient control operations at land borders (and where appropriate also maritime borders). Concerning forms of assistance, Tacis CBC will continue to support improvement of border infrastructure and provision of equipment, but in the forthcoming period greater emphasis will be given to activities which ensure that infrastructure investment and the purchase of equipment are supported by a combination of measures which can realise real benefit from investment activity. The combination should address the continuing infrastructure needs whilst also giving sufficient attention to border procedures/practices and to ensuring any investment is very clearly conditional on improvements in operational practices.. In addition, as indicated above, Tacis CBC will also be open to support the further development of other networks in the areas of transport, telecommunications, energy pipelines and transmission. Within this context, programming will ensure that priority is given to projects which meet one or more of the following criteria: Network activities which are specifically cross-border in nature, and which are best dealt with in the framework of a cross-border co-operation programme Projects which involve action at the regional level and where the effect is clearly felt in the border regions. Projects which are linked to matching activity in the neighbouring countries, and in particular those which are prioritised for activity within the Interreg, Phare or ISPA programmes. This will include projects which complement Trans-European Network projects and/or which involve links between projects funded under national or regional Tacis programmes and projects funded by Phare and other pre-accession instruments. Concerning Border Crossings, the annual programming process will be developed within the following framework: Concerning funding for specific border crossings, two major studies have recently been launched, and this work will be used to inform and support the programming of assistance for border crossings. Prioritisation of specific border crossings will draw upon the updated border crossing study recently launched (funded from previoous Tacis CBC Programmes). This study is updating the Phase I border study from 1995, and it will reflect the changes since that time and the effects 7

8 of previous cross-border cooperation activity to establish up-to-date information and indicate priorities for support within the Tacis CBC Programme. In addition, a second study involving an Analysis of Border Legislation at the western border of the NIS will also contribute to programming by identifying legislative obstacles to the introduction of modern operational practices. Investment in infrastructure development will only be supported where there is a clearly identified priority need and where there is a real commitment to specific and measurable improvements in operation. In the design and development of infrastructure projects there should be clear emphasis on the conditionality of any investment on specific and measurable commitments to appropriate improvements in practice and procedures. Training for border officials is still an important task. In particular it is essential that work is done in this area to increase the effective implementation and utilisation of infrastructure/equipment expenditure. Therefore assistance will continue to be provided in this area. Support for training in the future should where possible include measures to promote training programmes which will permeate throughout the border organisations and are not geographically limited to a few selected border posts. In this respect, to strengthen the sustainability of work, as well as continuation of the assistance through courses and study tours technical assistance should also be given to support the establishment of a training infrastructure in the four countries. Concerning the content of training, in addition to forms of training already operating, consideration should also be given to training on the impact of the Schengen agreement on the four NIS countries. Border-crossing projects should, where appropriate, incorporate wider social and economic issues related to the development of border infrastructure. For example, improvements in border regimes can, in certain cases, lead to localised unemployment in border towns. Attention should be given to this dimension of our intervention. In addition to including consideration of these elements within border crossing projects, it is also likely that such support within Tacis CBC will come within the area of support for the Private Sector & Economic Development (see section below). In order to ensure effective measurement of investment activity, the development and utilisation of a benchmark system for border crossings will be further considered. Initial investigation work has been launched within the framework of the Border Crossing Programme Project Supervision Unit (PSU), and to strengthen the conditionality approach and to widen application of best practice there should be steps to incorporate these concepts into the annual programming process. In order to ensure that implementation is effective, programme supervision activities will continue. This work would include continued training in the use of FIDIC works contracts. As part of the commitment to strengthening institutional twinning within Tacis it is intended to develop ways to draw upon the considerable experience currently in place in neighbouring countries via the Phare Twinning Programme. Member States Pre-Accession Advisers (PAAs) specialised in border issues are currently based in all of the applicant countries bordering the Tacis CBC eligible areas, and their work includes issues of border management, development of customs & border 8

9 controls, as well as third pillar issues. We will, where possible, seek ways to draw on this experience/expertise in relation to programming (consultation on priorities), project development (consultation on project definition), and project implementation (requirements for contractors to use PAAs as sources of information). Moreover, concerning broader linkages there will be continued efforts to assist in the development of relevant activities, such as the multilateral conferences on customs co-operation (as held at Imatra in 1999). 9

10 6. Area of Co-Operation Promotion of Environmental Protection & Management of Natural Resources Since the start of the Tacis CBC Programme, the environment has been considered by the EU and by the partner States as a major priority. The transboundary dimension of natural resources is an obvious fact and the need to manage these resources in a coherent and effective way across borders has widely been recognised. This has been highlighted by the high number of environment projects which have been generated under Tacis CBC since Consultations carried out for the drafting of this IP have reinforced this and have confirmed that the environment remains a top priority. The new Tacis regulation identifies four sub-categories in the area of Promotion of environmental protection and management of natural resources. Within the Tacis CBC Programme, it is intended to prioritise projects which have a clear cross-border dimension and to which cooperation with neighbouring regions provides clear added-value. This principle will also be applied to the environment sector. Consequently, the Commission anticipates that Tacis CBC will primarily focus on the sub-category covering issues relating to the sustainable management of natural resources and the improvement of environmental infrastructure. However, it is also widely recognised that environment projects cannot be implemented effectively if they are not complemented and/or supported by the right policy and legislative frameworks. In addition, the process of enlargement of the EU makes it even more critical to ensure that the legislations of the four countries eligible for Tacis CBC align themselves to EU standards and norms as soon as possible. For these reasons, while focusing on the management of natural resources and the improvement of environmental infrastructure, the Tacis CBC Programme will aim to support projects which contribute to what is seen as a national issue, i.e. the development of environmental legislation, policies and practices to EU standards. In this context, particular attention will be paid to the following : Projects supported within the National Programmes of the 4 countries eligible for Tacis CBC and which have an environmental contents or dimension; Projects financed under the TACIS Interstate Environmental Programme; the work which has recently been launched by the Commission through DG Environment, namely the two projects looking at environmental law approximation in Western NIS on the one hand and at capacity for implementing and enforcing environmental law in the NIS on the other hand. Previous activities of the Tacis CBC Programme in the environment sector have largely focused on the management of common natural resources, principally in the field of water and forestry. The new Tacis Regulation requires that over the next programming period, particular attention is paid to the need to reduce environmental risks and pollution, including transboundary pollution. Events in the recent past, such as the pollution of the Tisza River and the floods in Central Europe have highlighted how important it is now to put in place concrete measures that will reduce the risks of pollution. Consequently, the Commission proposes that priority is given during the period of the Tacis CBC Programme to the alleviation of environmental hot spots, particularly in the water sector. This priority reflects the deep concern which exists within the Tacis CBC Programme key stakeholders. River water pollution has far-reaching consequences for a large number of individuals and operators, not only along the major rivers concerned but also for the fragile marine 10

11 environment of the Baltic, Barents and Black Seas. The ability to respond to potential crisis situations and emergencies clearly needs to be developed. The identification of hot spots has been on-going for a number of years through a variety of initiatives, including previous Tacis CBC projects. In particular, the Commission wishes to highlight the work carried out in Helcom-defined hot spots within the Baltic Sea Comprehensive Environmental Action Programme, the Danube Pollution Reduction Programme and the Barents Euro-Arctic Council Environmental Action Programme including the NEFCO/AMAP Hot Spots projects. As far as the prevention of floods is concerned, the various projects on river basin management already funded by Tacis during the previous programming period should be used as primary sources of information on catchment area issues. While the water sector is clearly seen as the key priority for future Tacis CBC activities in the environment, it is also clear that the natural heritage of the regions concerned needs to be protected and preserved. This heritage is key to the environment but also to the economic balance of the regions. Therefore, attention will also be paid to activities aimed at securing the sustainable management of other resources, such as forestry and national parks. As regards forms of assistance, Tacis CBC will combine continued technical assistance for the sound management of natural resources but will also provide support to investments which make a clear contribution to the reduction of environmental risks and pollution. In particular, investments in the field of waste water management and drinking water will be considered favourably. As with the other two priority areas of cooperation, technical assistance will focus primarily on enhancing the capacity of the border regions institutions to manage and implement environmental activities. For instance, environmental law enforcement, effective monitoring of water/air quality, implementation of environmental impact assessment requirements are very often the responsibility of the regions. Projects which clearly increase the capacity of border regions to meet these responsibilities will be considered for support. As with bordercrossing management, it is recommended to make use of the on-going process of Accession to try and encourage twinning -type of cooperation between the various levels of administrations. Finally, both in the field of investment support and technical assistance, particular attention will be paid to complementarity with projects financed in the neighbouring countries. The Commission will seek to ensure that greater synergy is developed between the various financing instruments it promotes in the region, as is already being developed through the Northern Dimension Action Plan. In concrete terms, the Commission will seek to increase the levels of cooperation in the environment sector between the following instruments : Tacis CBC and Interreg on the borders with MS Tacis CBC and ISPA on the borders with Applicant Countries (attention will be paid to the Country Strategies for the Environment which have been prepared by all candidate countries insofar as they mention specific cross-border activities) Tacis CBC and Phare on the borders with Applicant Countries (attention will be paid particularly to the environment chapters within the National Programmes for the Adoption of the Acquis and the activities funded under the Social and Economic Cohesion objectives where they have a cross-border dimension). 11

12 7. Area of Co-Operation Support to the Private Sector & Assistance for Economic Development The continuing importance of this sector is shown by the fact that in the Tacis National Programmes Moldova, Russia and the Ukraine, there is a continued priority for support to the Private Sector and Assistance for Economic Development. What is also clear is that, in general, the western border regions of the NIS also face specific developmental problems; many of the areas suffer from their peripherality within their own national economies, they have historically low levels of investment, and limited development of cross-border economic activity. Thus, there remains a large differential between the levels of economic development across the borders of the western NIS. This issue is not limited to the borders with the European Union member states, but due to the relatively strong economic growth in the candidate countries during pre-accession this gap is also increasing at the CEC/NIS borders. Faced with these challenges, unless there is effective action to support economic development of the border regions of the NIS we may see that these regions will find it extremely difficult to take advantage of the opportunities provided by the enlarged EU. Given the need to focus resources, it is essential that a clear framework is agreed for the prioritisation of assistance for Private Sector Support and Assistance for Economic Development during the forthcoming period. Priority within annual programming during the period will be given to projects which address the following point: Assistance within the Tacis CBC programme should be focused very clearly on economic development issues specific to a cross-border programme. Only those projects that require clear cross-border co-operation and joint activity and/or which deal with issues of clear cross-border economic impact and enhanced regional cooperation should be supported. Generic issues of private sector support and economic development are more appropriately dealt with as part of the Tacis National Programmes. The emphasis on cross-border co-operation will be reinforced by the prioritisation of projects which seek to address the economic development of neighbouring regions and promote regional co-operation via the establishment or operation of common working structures/practices and/or by the promotion of sustainable forms of direct co-operation between enterprises and economic organisations. In order to maximise the value and impact of Tacis CBC assistance there will be high priority given to projects that in a direct way combine with complementary activities within the Interreg and Phare programmes. In this respect the programming process will seek to maximise connections with the appropriate economic development frameworks offered by the various Interreg programmes for Member States, and the regional development strategies being developed within the candidate countries as part of the accession process. In this context it should be stated that, in order to enable Tacis CBC the possibility to respond to specific needs and to support projects not in-line with Interreg/Phare funding where this is justified by the particular circumstances, it is proposed that projects without match funding or links with parallel programmes will be eligible and may be supported as necessary. 12

13 Within the sub-categories included in the new Tacis regulation, special emphasis will be given to operation of cross-border activities to support the promotion of small & medium enterprises (SMEs), the promotion of private entrepreneurship including joint ventures, and the promotion of a market-orientated framework for trade and investment, including projects on trade facilitation and customs co-operation. With regard to assistance on the NIS-CEC borders, there will be prioritisation of activities which utilise in an effective way the specific experience and expertise gained in the candidate countries. There has been relatively extensive economic development activities undertaken within the Phare programme, and the capacity developed should be utilised. In this context, it should be noted that the new regulation allows for equal participation to natural and legal persons from countries benefiting from the Phare programme. Where there are recognised and representative cross-border agencies or other similar institutional frameworks in place, Tacis CBC will give priority to projects which are clearly in-line with the agreed strategies set by the local regional and local organisations (provided these are in accordance with the broader policy framework of the Tacis CBC programme). In this respect, the Tacis CBC programme will also consider the promotion of the development of different sub-regional organisations (e.g. Euroregions) that may provide a more sustainable basis for economic development work. Where projects are within areas covered by major regional initiatives, priority will be given to projects which make a clear contribution to the economic development and regional co-operation objectives promoted by the initiative. In this respect, particular attention will be given to the Northern Dimension and the Black Sea Regional Co-operation Organisation. In relation to the CEC-NIS borders, there is still the need to investigate more closely the economic impact of enlargement within the border areas and, in line with the approach taken to the border crossings studies, to set out a baseline study to support prioritization of assistance for economic development within the CBC programme. There will be prioritisation of projects which address the impact of enlargement upon the western border regions of the NIS. Firstly, support should be focused on activities to combat the increasing gap produced by the structural changes and relatively high-levels of investment in accession countries as they prepare for the single market. Secondly, assistance may be provided for projects which seek to tackle the many economic development issues resulting from the impact of strengthening border regimes upon the important informal economy. In this context, it is proposed to identify a pilot region in which this issue can be tackled as a priority. Appropriate measures could be extended to other border regions in the future. 13

14 8. Tacis CBC Small Project Facility As set out in the Strategy Paper, the Tacis CBC Small Project Facility has been an important and effective element within the Tacis CBC Programme since its launch. It is therefore intended to continue to provide assistance via the Small Project Facility as an important element within the Tacis CBC Programme. In the forthcoming period it is intended to build upon the success achieved during the previous years, and to continue to develop the SPF as a mechanism to meet the wider objectives of the Tacis CBC Programme. In particular, the flexibility of the SPF will be maintained as a valuable contribution to local and regional cooperation. The basic approach taken by the SPF will remain unchanged. It is important, however, to learn from the lessons of previous implementation and to respond to the changing policy and regulatory framework. It is clear that, in making any changes it will be important to fully consider the range of operational and contractual/regulatory issues and to ensure that any changes to the SPF will enhance the effectiveness of its functioning as a concrete and practical tool for co-operation. Within this context, whilst retaining the essential nature of the approach to date, consideration may be given to the following issues during the period : There will be exploration of whether it may be feasible and of value, on an indicative basis, to provide a clear pattern of fixed annual deadlines (e.g. subject to approval, calls for proposal will take place each April, for submissions each September). Although specific annual calls for proposal will depend upon the approval of annual budgets, attempts could be made to establish implementation arrangements that provide a regular date for project generation/selection. Consultation has shown that even an indicative arrangement of this type may enable greater possibilities for linkages with Interreg and Phare funding. In response to the new Tacis regulation, it is now a requirement to provide equal access to invitations to tender and contracts for natural and legal persons in countries benefiting from the Phare programme. Given the nature of the Tacis CBC programme it is therefore proposed to look at how it may be possible to develop the SPF in the NIS-CEC borders. In particular, it is proposed to explore operational options to increase the possibilities for direct CEC-NIS partnerships without the obligatory requirement for a third EU partner. This will not only be a response to the new regulation, but may also enable Tacis CBC to support more direct institutional links on CEC-NIS borders and to obtain more cost-effective action in many projects. It should be stressed that it is not intended to remove the possibility for EU participation within NIS-CEC partnerships. Also, to ensure effective implementation it will be essential to ensure that decentralised project implementation is undertaken by competent local/regional authorities with the capacity and financial management structures to meet all contractual obligations. 14

15 9. Regional Actions The geographical orientation of the Tacis CBC programme will focus on the borders between the NIS and the EU (including both land and maritime borders), and the NIS borders with the Applicant States. Within the Partner States the eligible border regions will remain unchanged from those which have applied for the Tacis CBC programme since In this respect, activities in the area of Archangelsk (RUS) will thus be considered only in exceptional circumstances, and only where this is necessary to complement activities funded under the Interreg programme. 10. Budget Subject to the specific annual budgetary approval process, for indicative purposes it is proposed to provide around EUR 30 million per annum for the period Within this indicative budget it is intended to retain flexibility across the programme and to allocate specific assistance on the basis of the annual programming process. However, as required within the regulation the indicative allocations for each Area of Co-Operation is as follows: Development of infrastructure networks: 40 50% Promotion of environmental protection & management of natural resources: 15 25% Support to the private sector & assistance for economic development: 15 25% Small Project Facility: 10 25% In addition, consideration will be given to support to specific initiatives which may cut across the areas of co-operation and strengthen the work of the CBC Programme as a whole. 15