Ministry of Environment and Urbanization

REPUBLIC of TURKEY

A Practical Guideline for preparation of Operation Identification Sheet used in submission to the European Commission of Minor Project Applications under IPA II

MINISTRY OF ENVIRONMENT AND URBANIZATION

Department of European Union Investments

Minor projects can be funded as part of Sector Operational programmes under IPA II.

The present document constitutes guidelines on the submission by National Authorities of minor project applications by Annex VIII: Model Operation Identification Sheet of Financing Agreement IPA II Multi-annual Programme.

The guidelines do not deal with tendering, contracting, monitoring and evaluation of implementation.

MINISTRY OF ENVIRONMENT AND URBANIZATION

Department of European Union Investments

CONTENTS

1. Title of the Operation

1. Operating Structure

1. Body responsible for the Implementation of the Operation

1. Compatibility and coherence with the Operational Programme

1. Description of the Operation

1. Implementation arrangements

1. Risks and Assumptions

1. Expected impact of the operation on the target group and multiplier/spill over effects

1. Sustainability

1. Equal opportunity, minorities and vulnerable groups (where relevant)

1. Requested financing from the European Commission

1. Co-financing

1. Budget Breakdown

1. Cash flow requirements by source of funding

1. Revenue Generating Operations

1. Environmental Impact Assessment (if applicable)

1. Log frame matrix

1. Activity based budget breakdown

1. Optional; list of related operations or projects, feasibility studies, supporting reports, market surveys, training need analysis etc

1. After the submission

ABBREVIATIONS

CSPCountry Strategy Paper

DG NEARGeneral Directorate for European Neighbourhood Policy and Enlargement Negotiations

DoEUIDepartment of European Union Investments

EC European Commission

EIAEnvironmental Impact Assessment

ESOPEnvironment and Climate Action Sector Operational Programme

EUDDelegation of the European Union to Turkey

EUEuropean Union

IPA Instrument for Pre-accession Assistance

MoEUMinistry of Environment and Urbanization

OBOperation Beneficiary

OIS Operation Identification Sheet

OSOperating Structure

SEAStrategic Environmental Assessment

SOPSector Operational Programme

TATechnical Assistance

TDTender Dossier

ToRTerms of Reference

1. Background

The Instrument for Pre-accession Assistance (IPA) is the means by which the EU supports reforms in the 'enlargement countries' with financial and technical help. The IPA funds build up the capacities of the countries throughout the accession process, resulting in progressive, positive developments in the region.

For the period 2007-2013, EU financial assistance to Turkey was provided under IPA-I, to support the country’s progressive alignment with the standards and policies of the European Union with a view to membership.

Prepared in partnership with the beneficiaries, IPA II sets a new framework for providing pre-accession assistance for the period 2014-2020.

IPA II targets reforms within the framework of pre-defined sectors. This sector approach promotes structural reform that will help transform a given sector and bring it up to EU standards. It allows a move towards a more targeted assistance, ensuring efficiency, sustainability and focus on results.

IPA II also allows for a more systematic use of sector budget support, and it gives more weight to performance measurement: indicators agreed with the beneficiaries will help assess to what extent the expected results have been achieved.

For the period 2014-2020, the EU financial assistance to Turkey is going to be provided under IPA II. The IPA II regulation (EU No: 231/2014), establishing IPA II was adopted on 11 March 2014 and is applicable retroactively from 1 January 2014. The IPA Regulation is complemented by Commission Implementing Regulation (CIR) No 447/2014 of 2 May 2014 (IPA II) [referred to as IPA II IR]. This Regulation is a set of simplified and harmonised implementing rules and procedures for all external action instruments.

IPA II assistance shall be provided on the basis of strategy papers, established for the duration of the Union's Multi-annual Financial Framework by the Commission in partnership with the IPA II beneficiary. That assistance shall be implemented through programmes and measures as referred to in Articles 2 and 3 of the Common Implementing Regulation. Implementation shall, as a rule, take the form of annual or multi-annual, country specific or multi-country programmes, as well as cross-border co-operation programmes established in accordance with the strategy papers and drawn up by the IPA II beneficiary and/or the Commission, as appropriate, and adopted by the Commission.

Indicative Country Strategy Paper for Turkey (CSP) sets out the priorities for EU financial assistance for the period 2014-2020 to support Turkey on its path to accession. 9 sectors are defined for strategy papers. This list of sectors corresponds to the objectives of IPA II. “Environment and Climate Action” sector under “Socio-Economic and Regional Development” policy area aims to improve environmental protection and addresses the challenge of climate change and improve citizens’ quality of life by making progress on aligning Turkey’s legislation with the EU’s environment and climate change acquis.

Under the acquis alignment action, all fields of environmental (horizontal legislation, air quality, water, waste, nature and soil protection, chemical, industrial pollution and risk management and civil protection) and climate acquis (emission trading, monitoring and reporting, ozone layer protection fluorinated gases, fuel quality and others including EU Adaptation Strategy) should be covered through Technical Assistance (TA), twinning and, if necessary, grants, supplies and works for pilot implementation.

Capacity building measures relating to horizontal legislation at national, regional and local levels and approximation of relevant EU legislation, in particular the Environmental Impact Assessment (EIA) and the Strategic Environmental Assessment (SEA) Directives (including on transboundary issues) will be the focus of planned actions.

This Sector Operational Programme (ESOP) is based on a thorough analysis of the socioeconomicsituation of Turkey, which needs to continue the intensive process of aligningits national legislation with that of the EU, to bring it into a position where it could takeon the obligations of EU membership. Particular efforts will be needed in areas relatingto Environment and Climate Change (chapter 27), as alignment in these areas willrequire substantial investments and institutional capacity building to design, implementand monitor climate policies, and improving capacity for transition to low carboneconomy through action across a number of sectors.

ESOP has identified 3 priority actions and related measures for co-financing:

• Action – 1: Water
• Action – 2: Waste
• Action – 3 : Environmental Management for Sustainable Development

Sector Operational Programmes are implemented via major projects or minor projects.

A minor Project is often a major project which budget does not comply with the minimum set up in the Framework Agreement to qualify as a major Project (Thresholds (i.e. project total cost) identified in the Framework Agreement is: EUR 30 million for Turkey). It can also be a small scale (i.e. below the threshold established for major Projects) infrastructure, a Technical Assistance contract or a grant scheme or a combination of these elements.

Minor projects are approved by the IPA II Beneficiary, after an assessment by the Commission and provided the Commission does not object to its financing. The Commission reserves the right to object to its financing if the project does not correspond to the objectives and priorities of the Sector Operational Programme or does not fulfil the general selection criteria approved by the Sectoral Monitoring Committee (art 10, point (2) of the GC of the FA for Multi-Annual Action Programmes).

For minor Projects an Operation Identification Sheet (OIS) presenting a concise description of the project to be implemented needs to be submitted by the Operating Structure (addressed to the relevant DG NEAR Director and sent to the EUD.) as Application Form for each minor project.

The Department of European Union Investments (DoEUI) in the MoEU introduces formal Operation Identification Sheets (OIS) (Annex) for the description of project proposals.

The Department of European Union Investments, in the MoEU as an Operating Structure, ensures that the project selection process complies with partnership and transparency principles. Only those projects which satisfy the objectives and fall under the implementation strategy (i.e. priority axes and related measures) of the ESOP are considered during the preparation process.

Regarding IPA II Financing Agreement for Multi-Annual Action Programmes - Annex II - General Conditions; The Operation Identification Sheet must contain inter alia the following elements:

• Identification of the Operation and the Organisation responsible for its implementation
• A summary description of the operation and the demonstration of its compatibility with the programme;
• Implementation arrangements, risks and assumptions;
• Expected outputs, results and impact, including contributions to horizontal themes;
• Links with other IPA programmes;
• Financing arrangements and estimated budget and
• Procedures foreseen for tenders and contracts

However; Operation Identification Sheet is generally supplemented with informative documents like log-frame matrixand activity or result based budget calculations for a clear and comprehensive expression of the operation. It should be kept in mind that those documents are requested for endorsement.

A copy of the Operation Identification Sheet shall be transmitted to the Commission for Information.

The OperationIdentification Sheet shall be presented to the Sectoral Committee members for approval.

Every Operation Identification Sheet forms the basis of writing the future Tender Dossier for Technical Assistance Contracts.

1. The Need for a Practical Guide

The aim of this ‘Practical Guide for Preparation of Operation Identification Sheet’ is to help the organisations willing to design an operation financed under the Sector Operational Programme on Environment and Climate Action (ESOP) under IPA II. The Operating Structureof ESOP is DoEUI in MoEU.

In order to support potential beneficiaries to prepare sound, reliable, cost effective and well justifiedoperations that successfully attract EU financing, this guideline aims to provide guidance and sharesome practical tricks on the technical design and budgetary planning of operations. Well designedand prepared OIS ensure successful implementation and increase IPA fundsabsorption capacityin Turkey.

For a successful preparation of Operations below criteria should be considered:

• The policy framework and the operational programmeshould be coherent

• All levels of responsibility should possess understanding and commitment

• Relevant stakeholders should be in close cooperation

• Problems and objectives should display a logical relationship

• Realistic and feasible purposes with indicators should be aimed

• Effective management should be carried out

• Interactive approach which requires working and learning from other partners is needed

• Grounded financial and budget planning in line with the activities and resource planning should be made.

1. Description of an Operation

An operation comprises a project or a group of projects to be funded with EU funds under ESOP and co-funded with national public organisations and implemented by one or more final beneficiaries. The objective must be in line with priories identified under the ESOP to be eligible for EU financing. An operation addresses different components, namely service, works, supply and grant.

Typical components under an operation are:

•Service component: Technical Assistance

• Works component: Construction

•Supply component: Supply of equipment

•Grant component: Grant Scheme

Technical Assistance (TA) contracts are implemented by consultancy firms, often by a consortium of several consultancy firms selected through a procurement procedure. The objective is to provide expertise to the institutions benefiting from Technical Assistance in order to promote development and building of capacities. The procured external consultancy services in TAs aim at supporting the beneficiary with expertise in implementation of the project activities done by the beneficiary. It also aim at achieving a specific project objective, which in most cases is the development of the beneficiary institution and building its capacities.

Institution building may also require the development of technical infrastructure of an institution. Supply of the necessary equipment may also be an eligible component under the operation if well justified. Supply component covers the purchase of products.However, a supply component has to be linked to a service component and cannot be operation alone. It would be better to know that there have been excessive unsuccessful supply experiences through IPA 1 period that makes this supply component to be scrutinised by EU.

Non-refundable grants can be provided to pre-defined eligible organisations under a ‘Grant Scheme’through ‘Call for Proposals’. The aim of a grant is to provide financing to projects that aim at contributing to the goal(s) identified for the operation. The Operation Beneficiary will be responsible for the day-to-day management and monitoring of the grant projects implemented under the grant component of the operation. Therefore an OB may plan a grant scheme component under the operation only if it clearly demonstrates in the application that it has sufficient capacities to manage and monitor the implementation of the planned grant scheme.

1. Designing an Operation

Application and presentation of the operations are done through a document called “Operation Identification Sheet (OIS)”. OISs must follow a standard template designed and provided to potential beneficiaries by the OS. The quality of the OISs prepared by the potential beneficiaries is an important criterion to be financed by European Commission.

The OIS is a general reference document which aims to provide all basic information, conditions and requirements regarding the planned operation, its components and activities under each component.

How to address the headings under the standard OIS Template is given below;

1. Title of the Operation

It is requested to select a title for the operation. It should be short, striking and reflect the content of the operation.

Example:

× StrengtheningtheQualityofEnvironmentalData:DevelopmentofDataRepository,Data Analysis, Development of Prediction and Modelling Systems

√ “Strengthening Environmental Data”

However, it is suggested to leave the selection of the title of the operation as last step. The right title can only be selected after completing the design of the operation. While developing the operation further andfurther, the goals and the logic of the operation can be understood more andmore. It will be much easier to mobilise the creativity and select a reallygood title at the end. In any case, try to avoid long, describing type of titles.

1. Operating Structure

This part shall be filled as:

Name: Ministry of Environment and Urbanization (MoEU) Department of European Union Investments (DoEUI)

Address:Mustafa Kemal MahallesiEşkişehirDevletYolu (DumlupınarBulvarı) 9. Km No:278Çankaya /Ankara/Turkey

Contact:Mr. Mücahit DEMİRTAŞ

Telephone:+90-312-418 98 41

Telex/Fax:+90-312-424 17 62

3. Body responsible for the Implementation of theOperation

The official name of theapplicant institution shall be written together with address. Please also provide detailed information on contact details, like telephoneand fax numbers as well as e-mail address, of the high level political person who will represent your organisation incontractual terms and has the right of signature. Please provide full details of responsible person from the technical department, as well.

Name:

Address:

Contact:

Telephone:

Fax:

E-mail:

In case of more than one body responsible for the implementation of operation, the above information shall be also provided for other responsible institutions.

4. Compatibility and coherence with the OperationalProgramme

Under this part the applicant institution is requested to provide clear reference to the Operational Programme underwhich the planned operation will be financed.

You will have to consult and refer to the ESOP,which you may find under the following link: http://www.resmigazete.gov.tr/main.aspx?home=http://www.resmigazete.gov.tr/eskiler/2016/04/20160416m1.htm&main=http://www.resmigazete.gov.tr/eskiler/2016/04/20160416m1.htm

4.1 Title of the Programme

Sector Operational Programme: Environment and Climate Action (2014 – 2020)

4.2Title of the Action

3 actions exist under ESOP– It is required to choose one of the given actions that suits the proposed operation.

Action 1 :Water –

Action 2 :Waste –

Action 3 :Environmental Management for Sustainable Development

e.g. Action 3 Environmental Management for Sustainable Development

Activity 3.1 Acquis-related Institution Building activities

4.3End recipient of assistance

Owner of the operation and other key stakeholders if exist shall be written.

5. Description of the Operation

Under this part applicant institution is requested to provide justification of the need for the planned operation and also detailed information on its technical content.

5.1Contribution to the achievement of the Operational Programme

It is requested to describe the operation, its background, how the operation contributes to the achievement of the objectives of the concerned EU directives, Sector Operation Programme (2014-2020), Multi-annual Action Programme (MAAP) for Turkey on Environment and Climate Action, National Action Plan for EU Accession II. Phase and negotiation closing benchmarks of Chapter on Environment & Climate Action. Has the problem well described and supported with logical arguments and evidences (e.g. reference to statistics or result of a feasibility study etc. can be provided as Annexes)?Please provide very brief information and assessment on how this particular operation is linked or associated with previous projects.

Please note that this section is very important. The more convincing that the operation will greatly contribute to the achievements of the strategic priorities of the ESOP, the more likely is that theoperation will be selected.