Project Preparation Facility (PPF8)

Project description

Title: EU PPF – Project Preparation Facility
Commissioned by: Delegation of the European Union to the Republic of Serbia
Financier: European Union (EU)
Country: Republic of Serbia
Partner: Louis Berger, Stantec, EPCCO
Lead executing agency: Ministry of European Integration 
Overall term: 2017 to 2020

Context

The global economic crisis has underlined the need for all countries to strengthen their economic governance, improve competitiveness, and create a more stable and transparent business environment to attract investments and stimulate growth. 

In Serbia, the implementation of most infrastructure projects has faced numerous issues starting from inadequate project documentation, difficulties regarding land expropriation, ineffective control of contractors and their outputs leading not only to pushing deadlines but also to increased costs, and the slow issuing of permits. Inappropriate, unprofessional and non-credible conduct, as well as lack of accountability for assumed obligations is present at all levels and in all phases of implementation. This stems from the fact that the system of planning and monitoring of capital investments is not systematically regulated and organised.

Speeding up implementation of public infrastructure projects represents one of the key areas in improving the country’s long-term growth potential. In that respect public investment projects need to be well-prioritised and planned, underpinned by feasibility studies and fiscal risk analysis to ensure that projects contribute to growth potential without incurring excessive public debt.

The strategic objective of Serbian economic policy is to accelerate integration into the European Union (EU) accession by implementing the systematic reforms in all sectors. In order to adequately prepare for future EU accession and to meet national development goals, Serbia has high needs for infrastructure development. Only systematic analyses and the assessment of proposed infrastructure projects from the point of view of their strategic relevance, as well as detailed assessment of technical, institutional, financial, economic and environmental aspects of the concrete project, would provide sufficient and objective data for the definition of the management approach for the concerned infrastructure project. In order to support the infrastructure development in an effective manner, Serbia developed a project pipeline for investments in the fields of energy, transport, environment and business infrastructure. A project pipeline is developed based on Methodology for selection and prioritisation of infrastructure projects in transport, energy, environment and business-related infrastructure.

Objective

The technical and administrative capacities through the developing and preparing transport and environment infrastructure projects have been improved. They are being enhanced to the stage of readiness which would ensure effective and efficient management and absorption of EU pre-accession funds.

Approach

The EU PPF – Project Preparation Facility (EU PPF8) will support the Ministry of European Integration in the implementation of the Single Project Pipeline, as well as line ministries, national agencies and relevant public utility companies in the preparation of relevant infrastructure projects, technical documentation in the transport and environment sectors according to the national Law which is regulating the area of planning and construction, relevant bylaws and EU standards and norms.

Results

Result 1.Technical and tender documentation prepared for infrastructure projects related to the transport and the environment sectors (total number of projects 6 with a total investment value of around €700 million Euros):

  1. Major overhaul of the Iron Gate I Navigational Lock (completed)
  2. Regional Wastewater Collection and Treatment System Uzice, Kosjeric, Arilje, Ivanjica, Pozega (completed)
  3. Reconstruction and modernisation of Velika Plana – Nis (sub-sections: Velika Plana – Gilje; Paracin – Stalac; Djunis – Nis (ongoing)
  4. Remediation of Grand Backa Canal (Phase 3) (ongoing)
  5. Modernisation and reconstruction of Nis-Brestovac railway line
  6. Regional Waste Management System Kragujevac

Result 2. Training courses encompassing main principles related to preparation of technical documentation in the energy and environment sectors, prepared and delivered to the main stakeholders in the energy and environment sectors (500 participants trained in approximately 26 sessions) 

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