There are many environmental projects in Poland financed by funds from the European Union's PHARE and SAPARD program. While only companies the from European Union (EU) and PHARE recipient countries (Central and East European nations) are eligible to participate in tenders from PHARE projects, U.S. firms that are officially registered in either the EU or PHARE recipient countries are also eligible to participate. ZEFE suggests that interested U.S. companies with European presence contact the following institutions to get information on bidding opportunities:

Expert's Council for European Funds
of the STRUCTUM Company
ul. Niepodleglosci 30/59 Lublin, Poland
tel. (48-81) 747-00-14, 444-28-28 fax (48-81) 444-28-29
www.structum.com.pl/zefe.shtml

SAPARD program (Rural Areas Program for Infrastructure and Development)

Brussels, 14 September 2000

Rural development programmes for Poland, Hungary, Bulgaria, the Czech Republic, Latvia and Slovenia endorsed

Six rural development programmes to be co-financed by the EU's pre-accession instrument SAPARD⁽¹⁾ were endorsed in the STAR committee (Committee on agricultural structures and rural development). They cover Poland, Hungary, Bulgaria, the Czech Republic, Latvia and Slovenia. Welcoming the vote of the first set of programmes, EU Commissioner for Agriculture, Rural Development and Fisheries, Franz FISCHLER said “Our objective is to channel funds to the applicant countries as fast as possible so that projects can get under way. The programmes outline how the agriculture and the agri-food sectors in the applicant countries are preparing for integration into the EU. The measures envisaged will play a key part in the adoption the “acquis” and help strengthen competitiveness in the run up to accession.” 520 million EURO per year are earmarked for pre-accession aid under SAPARD. To safeguard the budget appropriation for the year 2000, Commissioner Fischler recalled that one more essential requirement remained to be satisfied after adoption of the Programmes, namely to draw-up the Multi-annual Financing Agreements. Thereafter the transfer of funds would be possible after Commission approval of the accreditation of the SAPARD agencies and conclusion of the Multi-annual and annual Financing Agreements.

What is SAPARD?

SAPARD was created to support the efforts being made by the Central and Eastern European applicant countries in the pre-accession period as they prepare for their participation in the common agricultural policy and the single market. The approach involves the delegation of substantial responsibility to the candidate countries regarding the management of EU funds for rural development and decentralised programming. This will give the future members an opportunity to gain experience in applying the mechanisms involved in rural development programmes. It will equally ease the management of the large number of small projects envisaged under SAPARD. The Regulation implementing SAPARD⁽²⁾ adopted by the Commission on December 22, 1999 sets out the conditions for assistance in the areas eligible for expenditure such as investment in agricultural holdings and processing and marketing of products.

The overall budget in each year of the programme's seven-year run (2000-06) amounts to 520 million Euro, with the following indicative allocations:

SAPARD: annual indicative budget allocations (in million Euro, at constant 1999 prices)

Requirements for implementation of the SAPARD programme

For committing the funds

1.  The programmes voted today will have to be formally adopted by the Commission.

2.  The Multi-annual Financing Agreements which lay down the detailed provisions for delegation of the management of the programme to the SAPARD agencies in the CEECs must be concluded with the applicant countries.

For transferring the funds in addition

3.  The SAPARD agencies (responsible for paying and implementing the Programmes) must be established and accredited in the applicant countries 

4.  The annual Financial Memorandum has to be concluded

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^{(1) Special Accession Programme for Agriculture and Rural Development     
(2) (EC) No 2759/1999}

SAPARD Programme for Poland for the period 2000-2006

Key facts and figures

-                   Total area of the country:      312,680 km², of which 59 % is agricultural land.

-                   Population: 38.7 million, of which 38.1 % are living in rural areas,

-                   Share of agriculture in GDP : 4.9 % (1998)

-                   Share of agriculture in total employment : 28 %

-                   Share of agri-food processing in GDP: 6 % (1997)

-                   Agri-food sector: In 1998 employment in the food-processing sector totalled 3.5% of the total employment in the economy.

-                   Annual indicative SAPARD allocation (in mEuro, constant 1999 prices): 168,683.

The rural development programme aims to exploit the opportunities available for the farm and food industry in Poland, including agri-tourism development and local product promotion both at home and abroad. It equally strives to address future threats such as lack of access to capital and limited development of infrastructure in rural areas. The programme builds on existing strengths, namely the good climatic conditions for agricultural development, while taking account of current weaknesses such as poor farm structures, overpopulation and low education level.

Priorities for actions selected

The programme is based on two priority axes outlined in the Polish plan:

-                   Improvement of the market efficiency of the agri-food sector;

-                   Improvement of conditions for economic activities and job creation;

The following measures are to be implemented under each priority:

*EU support will cover 75% of total eligible public expenditure

These measures should contribute to the following strategic objectives:

-                   improvement of the economic viability of the Polish agri-food sector in both domestic and international markets;

-                   adjustment of the Polish agri-food sector to sanitary, hygiene and quality standards of the Single Market; and

-                   encouragement of multifunctional rural development, especially via developing technical infrastructure and creating conditions for non-agricultural economic activities in rural areas.

SAPARD Programme for Hungary for the period 2000-2006

Key facts and figures

-                   Total area of the country:      93,030 km², of which 67% is agricultural land.

-                   Population:10,044,000, of which 73.5 % are living in rural areas

-                   Share of agriculture in GDP : 5.0 % in 1998   (12.5% in 1990)

-                   Share of agriculture in total employment : 7.5 % in 1998   (17.5% in 1990)

-                   Share of agri-food products in GDP: 4 %

-                   Agri-food sector: Food industry in Hungary employs about 3-4% of the total labour force.

-                   Annual indicative SAPARD allocation (in mEuro, at constant 1999 prices): 38,054

The rural development programme aims to exploit the opportunities available for the farm and food industry in Hungary, including a widening market for unique, special and quality products and growing demand for organic products. It equally strives to address future threats such as depopulation and the lack of financial resources in rural areas. The programme builds on existing strengths, such as the highly educated labour force, while taking account of current weaknesses such as too many small holders with very small and scattered land plots.

Priorities for actions selected

The support provided under SAPARD will focus on the modernisation and restructuring of the agri-food sector and rural areas and contribute to the implementation of the agricultural acquis communautaire. This will be pursued based on the following three major priorities outlined in the Hungarian plan:

-                   increasing the competitiveness of agriculture and processing industries,

-                   focus on environmental protection aspects,

-                   enhancing the adaptation capabilities of rural areas .

These priorities will be implemented through the following measures:          

*EU support will cover 75% of total eligible public expenditure.

These measures should contribute to the following objectives:

-                   Modernisation of the stock of machines in agriculture; improvement and upgrade of the conditions of animal keeping; spread application of EU standards regarding environment, hygiene and animal welfare and increase the market efficiency of agricultural production.

-                   Increase in the proportion of products complying with the requirements for higher quality as well as in the rate of products with higher level of processing; improve the market position of the products concerned.

-                   Set up producer groups to make the production of private farms more efficient and more oriented towards high quality products.

-                   Dissemination of agri-environmental measures and increase in the proportion of farms shifting to practices that take into account the endowments of the environment and production sites.

-                   Upgrade of the food processing industry to make enterprises more competitive and ready to operate in the EU market.

-                   Development of rural infrastructure to improve the living standards and the general conditions of production.

-                   Improve the professional skills of farmers.

Plan National de Développement Agricole et Rural de la Bulgarie pour la période 2000-2006

Caractéristiques de base

-                   Superficie totale du pays: 110.910 Km² dont 81,4% (90.371 Km2)  représentent les zones rurales.

-                   Population: 8.230.000 habitants, dont 43,6% (3.612.794 habitants) vivent dans les zones rurales, dans des communes de moins de 30.000 habitants

-                   Taux de l'agriculture dans le PIB (y inclus les secteurs de la forêt et de la pêche): 18,7%

-                   Taux de l'agriculture (y compris les secteurs de la forêt et de la pêche) dans l'emploi: 25,6% (en 1998)

-                   Secteur agro-alimentaire: En 1999 le secteur représentait le 3,8% du PIB, assurait le 4% de l'emploi et couvrait le 10,6% des exportations

-                   SAPARD: Dotations budgétaires indicatives annuelles (en millions d'euros, aux prix constants de 1999): 52,124

Les objectifs stratégiques du programme sont les suivants:

-                   Le développement d’une production agricole efficace et durable et d’un secteur agro-alimentaire capable d’atteindre en fin de compte les standards communautaires, par l’amélioration des infrastructures technologiques et les structures des marchés et la réalisation d’investissements stratégiques.

-                   Le développement rural durable, compatible avec les meilleures pratiques environnementales internationales, par la création d’opportunités alternatives d’emploi, diversification économique, développement et réhabilitation des infrastructures.

Priorités du programme

Ce programme comprend quatre priorités, c’est-à-dire:

-                   Priorité 1. Amélioration de la production agricole, de la transformation et commercialisation des produits agricoles et forestiers ainsi que de la transformation et commercialisation des produits de la pêche conformément à l'acquis communautaire; la promotion d'une agriculture qui ne nuit pas l'environnement et la protection de l'environnement

-                   Priorité 2: Développement rural intégré visant au renforcement de l’économie  rurale et des communes

-                   Priorité 3. - Investissements aux ressources humaines

-                   Priorité 4 - Assistance technique

La mise en oeuvre de chaque priorité se fera par le biais des mesures suivantes:

La participation communautaire couvre en règle général les 75% des dépenses publiques.** Pour cette mesure, la contribution communautaire peut couvrir jusqu’au 100% du coût total éligible. *** Pour cette mesure, la contribution communautaire couvre les 100% du coût total éligible.

Agriculture and Rural Development Plan (SAPARD Plan) of the Czech Republic for the Period 2000-2006 (Council Regulation (EC) 1268/1999)

Key facts and figures

-                   Total area of the country:      78.866 km², of which 54,3 % is agricultural land and 33,4 % is afforested land.

-                   Population:10.299.125 inhabitants, of which 75,9 % are living in rural regions

-                   Share of agriculture in GDP : 1,8 % (1998)

-                   Share of agriculture in total employment : 2 %

-                   Annual indicative SAPARD allocation (in mEuro, constant 1999 prices): 22,063

The rural development programme builds on existing strengths, such as the existence of unique and specific regional products and traditional crafts and well organised micro-regional rural communities, while taking account of current weaknesses. These include poor infrastructure in rural areas compared with urban areas, and insufficient level of conformity to EU standards in certain agricultural sectors, as well as a prevalence of low profitability of farm businesses.

Priorities for actions selected

Based on the national development strategy of agriculture and rural areas and to complement other pre-accession instruments, the Czech Rural Development Plan defines three priorities:

-                   Increasing the competitiveness of agriculture and processing industry

-                   Sustainable development of rural areas

-                   Technical support (i.e. conditions for efficient utilisation of the programme)

Objectives to be achieved:

The most important tasks for the agricultural sector in the Czech Republic are to assure the introduction of the acquis communautaire in practice, to strengthen competitiveness of primary production and manufacturing industries, to attain a higher quality of agricultural and food products with higher added value, to finalise restructuring of agricultural and manufacturing plants, and to improve the position of primary agricultural production on the market. A specific task is to create preconditions for clear identification of land ownership and the development of a land market as well as to focus on support of other agriculture functions such as landscaping and recreation.

The main objective in the field of rural development is to contribute to :

-                   - a suitable economic environment for the stability of population,

-                   -  the development of small and medium-sized enterprises and

-                   - better utilisation of local resources

with the objective of achieving stable income in rural areas, reducing unemployment and making better use of the existing potential for ensuring the vitality and viability of these areas.

Rural Development Plan for European Community Support for Pre-accession Measures in Agriculture and Rural Development in Latvia (SAPARD) 2000-2006

Key facts and figures

Total area of the country: 64 582km², of which 39 % is agricultural land

Population: 2,46 million inhabitants, of which 31% living in rural areas.

Share of agriculture in GDP :    7.6% in 1997 (21.3% in 1991)

Share of agriculture in total employment : 16.6 % (1998).

Share of agri-food processing in GDP: 8-9% over past three years

Agri-food sector: In 1998 23% of the population employed in industry were in the food processing sector.

Annual indicative SAPARD allocation (in mEuro, constant 1999 prices): 21,848

The Latvian programme has two overall objectives; firstly, the implementation of the acquis communautaire concerning the common agricultural policy and related policies; secondly, to develop competitive and sustainable agriculture, strong, sustainable rural communities and diverse and sustainable rural environment.

Three specific objectives

These overall objectives are further divided into specific objectives, the first of which is to increase competitiveness and farming income level and to increase the incomes of agricultural enterprises. This is concentrated in Objective area 1 which focuses on the development of sustainable agriculture. In objective area 1, there are two priorities to be addressed using the following measures:

*EU support will cover 75% of total eligible public expenditure; EU support will cover 74% of total eligible public expenditure

The second specific objective is to improve infrastructure in the rural territory to bring it closer to urban standards and to create employment and a more diverse employment structure in the rural territory. Objective area 2 therefore focuses on integrated rural development and there are two priorities in this field:

*EU support will cover 75% of total eligible public expenditure

Finally, the third specific objective is to develop and promote the methods designed to protect the environment and maintain the countryside. Objective area 3 therefore focuses on  improving the environment and the priority is:

*EU support will cover 75% of total eligible public expenditure; ** EU support will cover 74% of total eligible public expenditure

Two supporting measures are also included in the plan, namely training (3.9%) and technical assistance (2%).

Slovenia: Rural Development Plan for the period 2000-2006 (Council Regulation (EC) 1268/1999)

Key facts and figures

-                   Total area of the country:      20,256 km², of which about 43% (data 1996) is agricultural land.

-                   Population:1,982,600, of which 57.3% are living in rural areas.

-                   Share of agriculture in GDP : 4.6 % (decreasing)

-                   Share of agriculture in total employment : 6.2 % (decreasing)

-                   Share of agri-food products in GDP: 3.5-4.5 %

-                   Agri-food sector: a total of 18,700 employees in food industry

-                   Annual indicative SAPARD allocation (in mEuro, constant 1999 prices): 6,337

The rural development programme aims to exploit the opportunities available for the farm and food industry including increasing possibilities for tourism and recreation activities in rural areas. It equally strives to address future threats such as unfavourable conditions for investment in agriculture: expensive loans, low rates of return of capital invested in agriculture. The programme builds on existing strengths, which include the diversity of rural areas, attractive countryside and diverse rural amenities, while taking account of current weaknesses such as unfavourable production structures (scattered land plots, under-utilised farm labour and mechanisation).

Priorities for actions selected

The Slovenian SAPARD programme is based on the following two priorities:

-                   Improvement of production and marketing structures in agriculture and the food-processing inductry

-                   Economic diversification and improvement of rural infrastructure.

The above mentioned priorities will be implemented through the following measures:

*EU support will cover 65% of total eligible public expenditure

These measures should contribute to the following strategic objectives:

-                   Increased competitiveness of the farming and food processing sectors.

-                   Improvement of farm incomes.

-                   Compliance with EU standards.

-                   Creation of additional employment on farms and improvement of the quality of life in rural areas.