Technical Assistance for Project Preparation of Investment projects (EU PPF6)

Project description

Title: Technical Assistance for Project Preparation of Investment projects
Commissioned by: Ministry of Finance – Department for Contracting and Financing of EU Funded Programmes (CFCU)
Financier: European Union (EU) and Government of Serbia
Country: Serbia
Partner: Louis Berger
Lead executing agency: Ministry of European Integration 
Overall term: 2017 to 2020

Contex

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 faced numerous problems, 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 slow issuing of permits, to name a few. 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 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 EU integration and 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 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. 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 capacity of the Serbian administration in relation to the European Integration process has been strengthened. Moreover, the effective and efficient management and absorption of EU pre-accession funds, with the special emphasis on development and preparation of energy and environment infrastructure projects have been enhanced.

Approach

EU PPF6 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 project technical documentation in energy and environment sectors according to the national Law which is regulating 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 environment and energy sectors (total number of projects seven with a total investment value of around€100 million EUR):

  • Loznica wastewater collection and treatment;
  • Pancevo wastewater collection and treatment;
  • Kraljevo Project wastewater collection and treatment;
  • Brus and Blace wastewater collection and treatment and sewerage network;
  • Thermal rehabilitation of public buildings - improving energy efficiency in the City of Belgrade
  • EHC project;
  • Belgrade LEEN project. 

Result 2: Training courses encompassing main principles related of preparation of technical documentation in energy and environment sectors, prepared and delivered to the main stakeholders in energy and environment sectors (500 participants trained in approximately - 20 trainings) 

Additional information