HomeHellenic Plan for the Economic Reconstruction of the Balkans (HiPERB)
Hellenic Plan for the Economic Reconstruction of the Balkans (HiPERB)
HELLENIC PLAN FOR THE ECONOMIC RECONSTRUCTION OF THE BALKANS (HiPERB) 2002-2011
Having undertaken certain obligations as a member state of the European Union and a member of the OECD Development Assistance Committee (DAC), Greece committed itself to the annual increase of its international development assistance with a view to ultimately achieve the target of 0,51% of its Gross National Income (GNI). Within this framework, a five-year programme for Greek development assistance, the Hellenic Plan for the Economic Reconstruction of the Balkans (HiPERB), was drawn up for the period 2002-2006. Taking, however, into consideration the more than two-year delay in HiPERB’s practical implementation mid-2004 instead of 2002, it was considered necessary to prolong the programme until 2011, so as to give recipient countries the possibility to make use of more of the HiPERB funds allocated to them. HiPERB is an effort on the part of Greece, in its capacity as a donor country, to incorporate individual initiatives of development assistance into one single plan and thus promote an integrated development policy. This Plan is aimed at political, economic and social stability in Southeast Europe, whereas its ultimate goal is to modernise infrastructure, promote production investments, support democratic institutions and the rule of law, modernise public administration and local government, strengthen the welfare state, redress economic inequalities and offer professional training to workers and scientists in the recipient countries. Another equally important objective of HiPERB is to support the recipient countries European perspective. The total budget for the Hellenic Plan for the Economic Reconstruction of the Balkans (HiPERB) comes to 550 million €, which is earmarked for carrying out big-scale infrastructure projects, strengthening private initiatives and bolstering cooperation between the countries of our region. The Plan’s seven recipient countries, i.e. Albania, Bosnia and Herzegovina, Bulgaria, FYROM, Montenegro, Romania, and Serbia are not only Greece’s trade partners, but frequently serve as transit countries linking Greece with the rest of Europe and the broader region. The principles that govern HiPERB’s implementation are efficiency and transparency. The Plan’s management bodies are the HiPERB Monitoring Committee, the Monitoring Committee’s Secretariat, National Coordinators, and the Joint Management Committee. The total budget of 550 million € is allocated by recipient country, on the one hand and by sector, on the other hand: Public investments/projects-79% (421.844.200 €), Private productive investments-20% (106.796.000 €), Small Projects Fund-1% (5.339.800 €).
The allocation of the 550 million € by recipient country and by sector can be presented as follows:
PUBLIC INVESTMENTS / BIG PROJECTS 79% (in €)
PRIVATE PRODUCTIVE INVESTMENTS 20% (in €)
SMALL PROJECTS FUND 1% (in €)
COUNTRY TOTAL (in €)
BOSNIA AND HERZEGOVINA
MANAGEMENT / ADMINISTRATIVE COSTS (2,91%)
In the public sector, which accounts for 79% of the total budget, there are projects, actions, studies and activities that are officially proposed by the governments of the recipient countries through their National Coordinators, with the submission of application forms. Public investment proposals are submitted by the recipient country through its National Coordinator and approved by the HiPERB Monitoring Committee, which is presided over by the Foreign Ministry’s Secretary General for International Economic Relations and Development Cooperation. The Committee evaluates the compliance of each investment proposal with the HiPERB goals and mission, and proposes to the relevant Deputy Minster for Foreign Affairs their approval or disapproval. The total available sum for the implementation of public investments/projects in all of the recipient countries comes to 421,8 million €. To this day, the total of approvals for the implementation of public investments/projects in recipient countries is estimated at 157,3 million €, accounting for 11 projects making up for 37,29% of the total budget for public works/investments in the public sector. The overall commitments amount to 222.214.400,55 € for 17 projects (52,67% of the total budget).
In particular, actions and programmes per country are as follows:
Albania An official proposal has been approved for upgrading the Sagiada-Konispol-Sarande Highway (40.5 km in total length), of a total cost of 29.869.983,19 € and a HiPERB contribution of 23.895.986,55 €.
Bosnia and Herzegovina Reconstruction/renovation of the Greek-Bosnian Friendship government building in Sarajevo, with a total budget of 16.789.989 € with HiPERB’s contribution estimated at 13.497.073 €. This building has now been completed and inaugurated on July 2007. The proposal for the reconstruction of part of the Kasindo hospital (Serbia Pavillion) in eastern Sarajevo, of a total budget of 2.966.048 € and HiPERB contribution at 1.920.000 €, is under evaluation.
Bulgaria a. Equipment for the Kurdzhali regional hospital operational ward (total cost: 918.420 €, HiPERB contribution: 734.736 €) b. Medical equipment for the Vratsa regional oncology hospital (total cost: 175.000 €, HiPERB contribution: 157.500 €) c. Construction of a regional oncology clinic in Smolyan (total cost: 1.425.884 €, HiPERB contribution: 1.140.707 €), and d. the SeeLight project (South-East European Lambda Network Facility for Research and Education/Interbalkan optic fibre network infrastructure for Research and Education), an optic-fibre broadband network for the interconnection of academic communities (total cost: 6.028.451 € HiPERB contribution: 4.822.760 €).
Montenegro The proposal relating to the funding of the upgrading of the oncology clinic of the Montenegro-Podgorica Hospital (renovation, additional work and purchase of equipment for the oncology clinics short-term treatment ward (total cost: 1.342.600 € HiPERB participation: 1.042.600 €).
FYROM a. the SeeLight project (South-East European Lambda Network Facility for Research and Education/Interbalkan optic fibre network infrastructure for Research and Education), an optic-fibre broadband network for the interconnection of academic communities, (total cost: 2.007.787 € HiPERB participation: 1.606.230 €). b. Under evaluation is the project for construction of the Demir Kapija-Gevgelija part of the PanEuropean Corridor X (of a total length of 27,75 km), with a total budget of 151,98 million €, with HiPERB participation estimated at 50 million €.
Romania Two proposals have been approved to this day (with a total budget of 8.198.193 € and HiPERB participation estimated at 6.558.554 €). These proposals are related to: a. the renovation-modernisation the Museum of the 21st century in Constanta, with a total budget of 2,5 million € and HiPERB participation estimated at 2 million €, and b. the SeeLight project (South-East European Lambda Network Facility for Research and Education/Interbalkan optic-fibre network infrastructure for research and education), an optic-fibre broadband network for the interconnection of academic communities, with a total budget of 5.698.193 and HiPERB participation at 4.558.554 €. The following projects are also under evaluation: a. A project for the reconstruction of the regional Medical Centre for emergency cases in Targu Mures, with a total budget of 10.801.046 € and HiPERB participation estimated at 7.020.680 € b. The St Maria Children’s Emergency Hospital in Iasi, (total cost: 4.400.000 € HiPERB participation: 2.860.000 €). The following project is also under consideration: a. Infrastructure modernization in the Izvoarele community, in the county of Tulcea, (total cost: 3.100.000 €, HiPERB participation 100%).
Serbia Two proposals have been approved to this day, with the total HiPERB fund estimated at 104.900.674. These proposals concern: a. The construction of the part of the PanEuropean Corridor X between Nis (Serbia) and FYROM’ s borders, of a total length of 74,6 km (total budget of 475,06 million € and HiPERB participation estimated at 100 million €), and b. the SeeLight project (South-East European Lambda Network Facility for Research and Education/Interbalkan optic-fibre network infrastructure for research and education), an optic-fibre broadband network for the interconnection of academic communities, of a total cost of 6.125.842 € and HiPERB participation estimated at 4.900.674 €.
Private productive investments
The Ministry of Economy and Finance’s General Secretariat for Investments and Development is competent for private investments. Submitted requests are evaluated by this General Secretariat and are then presented to the above-mentioned Ministry’s competent Central Advisory Committee for approval. Members of this Committee, with voting rights, are the Secretary General for International Economic Relations and Development Cooperation of Foreign Affairs and two representatives from the competent Directοrate of the Ministry. In case of absence or impediment of the Chairman of Committee, the Secretary General for International Economic Relations and Development Cooperation acts as a Chairperson when proposals for private productive investments, under HiPERB, are discussed. The HiPERB minimum and maximum subsidy for private investments is set between 800.000 and 5 million € for investments in the manufacturing sector and between 300.000 and 1,5 million € for investments in the agricultural sector, whereas the subsidy’s maximum rate is set at 30% of the investments total cost.
The available amount for strengthening private investments in all of the recipient countries totals 106,7 million €. To this day, the level of subsidies approved by the Central Advisory Committee totals 42.405.435,50 €, i.e. 39,70% of the total budget, for 62 proposals.
In particular, actions and programmes per country are as follows:
ALBANIA 15 proposals have been approved, of a total cost of 31.499.035 and a total HiPERB participation of 9.516.843 €. The rate of absorbance is estimated at 95,37% and 480 new jobs have been created.
BOSNIA AND HERZEGOVINA No application for private investment subsidy has yet been approved.
BULGARIA 14 applications have been approved for subsidizing private production investments, with a total cost of 38.982.112 €. Seven of them have already been completed. With the approval of these applications, the total of private investment subsidies comes to 11.678.133 € (exceptionally exceeding the initially foreseen level of subsidies set at 10.858.000 €). Jobs created through the implementation of the above-mentioned investments exceed 1.582 (of which 334 are for seasonal employment).
MONTENEGRO No application for private investment subsidies has been submitted as yet.
FYROM 6 proposals have been approved to this day, (total cost: 9.605.995 €, total HiPERB subsidy: 2.861.564). The level of absorbance comes to 19,11% of the total and 660 new jobs have been created.
ROMANIA 19 proposals have been approved to this day (total cost: 44.056.003 € HiPERB participation: 12.195.408,50 €). The rate of absorbance comes to 86,57% and 944 new jobs are created.
SERBIA Available HiPERB funds amount to 46,5 million €. To this day, 8 private investment subsidies have been approved, of a total cost of 6.144.487 €, accounting for 13,21% of the budget and creating 375 new jobs.
Small Projects Fund
As provided for in the individual Development Cooperation Agreements (article A2) between Greece and each of HiPERB’s seven recipient countries, 1% of the Plan’s total funds are placed at the disposal of Embassies of Greece in the recipient countries for Small Projects. This Fund can provide support to small-scale technical projects of an emergency nature and with an immediate impact on local communities. Each project’s cost must not exceed 50.000 €. Proposals for small projects are submitted to the Greek Embassy to each recipient country, which then forwards it to the Foreign Ministry, accompanied by a positive or negative evaluation, for final assessment and approval, which is a precondition for the implementation of any given project. The available amount for the implementation of small projects in all of HiPERB’s recipient countries comes to 5,3 million €. Up to now, the total amount of approved funds, for the construction of 77 small-scale projects, is 2.112.723,26 €, i.e. 39,56% of the Small Projects Fund total budget.
In particular, actions and programmes per country are as follows:
ALBANIA 30 projects of a total cost of 498.900 € have been approved and the rate of absorbance is 100%.
BOSNIA AND HERZEGOVINA To this day, 8 projects have been approved, with a total budget of 191.169 €, mainly in the field of social welfare, such as laboratory equipment, IT equipment, first-aid mobile units. The rate of absorbance is 97,88%.
BULGARIA 6 small projects have been approved to this day, of a total cost of 247.820,40 €, that is, 45,64% of the total budget (542.900€).
MONTENEGRO Three small projects and actions of a total cost of 35.560 € have been funded to this day. The rate of absorbance is 20,32%.
FYROM 8 proposals have been approved to this day for projects of a total cost of 302.700. These are mostly of a social character: purchase of first-aid mobile units for Skopje, Bitola and Tetovo, provision with medical equipment, etc. The rate of absorbance is 40,44%.
ROMANIA 9 small projects have been approved to this day, with a total cost of 414.163,09 €, accounting for 58,80% of the total budget (704.300€).
SERBIA The maximum available subsidy comes to 2.325.000 €. 13 projects (for building and school repairs, support for elderly homes and hospitals, repair of a small dam, etc.), of a total cost of 422.410,77 €, have been approved and implemented to this day. The rate of absorbance is 18,16%.