Cibola - a General Sponsor of a business breakfast with EU funds minister Tomislav Donchev

Payments of EU funds to increase by the end of the year! 

The rate of payments of EU funds on a monthly basis is seven times higher this year in comparison to last year, declared the Minister of EU funds, Mr. Tomislav Donchev, at a meeting organized by the Bulgarian Business Leaders Forum and the Bulgarian Association of Management Consulting Organizations with the support of Piraeus Bank Bulgaria, Cibola 2000 and Emporiki Bank. Despite this data, the Minister said that this rate should be increased substantially in order to achieve better results. “I am undertaking the commitment to make the rate of payments a two digit number by fall of this year.”

“The business sector is most affected by the late payments and and that can be observed particularly in the Operational programme “Development of the Competitiveness of the Bulgarian Economy 2007-2013” pointed out Mr. Donchev. The introduction of a regulated period of 3 months to make such payments is planned in order to ease the situation. Recent changes in the Decree of the Council of Ministers No. 121 (the basic document governing the allocation of grants) envisions measure for providing detailed information to the beneficiary as early as possible, including information on eligible and ineligible costs under certain operational programmes.

Mr. Donchev stressed that at present Bulgaria is in the middle of the programming period of the Structural Funds and now is precisely the time to start planning for the next programming period in accordance to the European and national planning priorities, which must be formulated jointly by government and business. He noted that Bulgaria as a member of the EU, should aim to actively participate in the planning of priorities at EU level and then proceed to their implementation at the local level, as opposed to the currently existing practice of trying to incorporate into national policy ready priorities handed down by the EU.

Mr. Guillermo Bosse, Manager SME Banking Business, Piraeus Bank Bulgaria, posed the question to Minister Donchev about the priority sectors of the economy in terms of EU funding. The Minister noted that this question is very important yet very complex because all economic sectors contribute differently. He added that in planning for the next programming period it is necessary to identify the sectors that will be the engine for the country’s development in the coming years.

“Most important for me remains the preparation of quality projects” declared Minister Donchev and added that those are usually well planned, well targeted and are in conformity with the mandatory EU policies and the global reality projects, and at the same time are consistent with the objectives of all stakeholders who will be directly affected by their implementation.

In relation to the topic of quality planning, Mr. Dimitar Manov, CEO of the consulting firm Cibola, added that it is essential to align the plans of the private investors, consultants and funding organizations in order for the efforts of the administration to be successful especially in the context of the mid-programming period. “The government officials responsible for running the operational programs need to come into real communication with all stakeholders when formulating management decisions aimed at the efficient utilization of EU funds” he added.

The EU funds minister noted that a further improvement to the process of successfully utilizing EU funds would be admitting consulting costs eligible under the operational programmes. Maria Shishkova, who is also chairperson of BAMCO, supported the need for regulation in the consultancy business and the creation of a register of certified consultants that will help clarify who is qualified to provide such services.

Mr. Donchev noted that the best model of consultancy service is a clear division of commitments by both parties – the contractor and the consultant, adding that he is ready for dialogue on the issue of certification of consultants whose services would be accepted by the European Union as a legitimate cost .

Over 80 representatives of business and consulting companies attended the meeting with the Minister of EU Funds for an opportunity to ask questions related to the management and absorption of EU funds and realization of successful projects. The business expects the EU funds to stimulate their activities and employment. Maria Shishkova, Chair of BBLF assured Minister Donchev that in the face of BBLF and BAMCO he can count on support and partnership relations, instead of passivly awaiting of ready results.

The meeting was conducted with the support of Piraeus Bank Bulgaria, Cibola 2000 and Emporiki Bank.