1. PRIME MINISTRY SECRETARIAT GENERAL FOR EU AFFAIRS ABSORBING EU FINANCIAL ASSISTANCE THE CASE OF TURKEY Ahmet YÜCEL Deputy Secretary General October 19, 2009

2. DIS Implementation in Turkey - I Decentralised Implementation System - DIS, in Turkey established with a Prime Ministry Circular dated 18 July 2001 which also defined the roles and responsibilities among institutions within DIS. According to this, there are four main actors : - National Aid Coordinator (NAC) - National Authorizing Officer (NAO) and National Fund (NF) - Central Finance and Contracts Unit (CFCU)

3. DIS Implementation in Turkey - II To ensure efficient DIS implementation, strategy of the Turkish Govenment was: EU financial assistance should be employed transparently and efficiently with a strong coordination among all stakeholders Major step was to ensure a strong coordination called Financial Coope ra tion Committee includ ing main institutions. The Committee consists of: -Ministry of Finance -Ministry of Foreign Affairs -Undersecretariat of Treasury -Undersecretariat of State Planning Organisation -Secretariat General for the EU Affairs

4. Lack of sufficient capacity at Implementing Agency (CFCU) Inadequate number of Staff Salary (differentiated remuneration system among staff-same task different remunerations) Not enough supervision of technical documents and SPOs organisations Lack of sufficient capacity at beneficiary institutions Poor quality of technical documents (PFs, TOR, TS etc.) Late submission of project documents for timely programming/tendering Insufficient implementation and monitoring capacity Poor understanding of DIS roles and responsibilities Experienced deficiencies in implementation Late tendering Low contracting rate Shortened durations for implementation of projects –loss of impact Major Challenges of DIS Implementation

5. DIS Implementation in Figures Lack of effectiveness in the early years was turned into progress in the absorption capacity when challenges/shortcomings of DIS faced.

6. Legislative Framework Legislative Framework (Framework and financing agreements) Institutional Framework Institutional Framework (DIS and IPA structures, operating structures, co- ordination) Administrative Capacity Administrative Capacity (staffing, training) Programming Programming (Development plans, investment programmes, operational programmes, project pipeline) Monitoring and Evaluation Monitoring and Evaluation (MIS) Financial Management and Control Financial Management and Control (Setting up implementation system and definition of responsibilities) From Pre-Accession Funds to IPA: What have been changed? Transition from pre-accession fund to IPA required comprehensive change in DIS structure which needs a long period for administrative preperation:

7. From Pre-Accession Funds to IPA: What have been changed? It is more flexible in terms of reallocation of budgets Multi Annual Programming Conferral of Management More Challenging

8. Efficiency in IPA Political Support Setting up structures timely Early accreditation Ovnership Technical supports to the actors Strategic approach in the operation programmes Effective coordination mechanism Training strategy Ensuring sustainability of the staff Public awareness

9. Factors Absorbing IPA: In General Strengthened institutional and administrative capacity Long-term and coherent planning and programming Mature project pipeline in every sector Smooth running implementation as possible Good management Well organized coordination between the institutions involved Well established monitoring and evaluation system

10. Thanks for your attention... !