Commission Regulation (EC) No 718/2007 of 12 June 2007 implementing Council Regulation (EC) No 1085/2006 establishing an instrument for pre-accession assistance (IPA)

Type Regulation
Publication 2007-06-29
Last updated 2015-11-21
State In force
Department European Commission
Source EUR-Lex
articles 197
Reform history JSON API
  • (c) operations which enhance regional competitiveness and a productive environment, and encourage creation and safeguarding of sustainable employment, involving in particular:
  • (i) provision of business and technology services for enterprises, particularly in the fields of management, market research and development and networking;
  • (ii) access and use of information and communication technologies;
  • (iii) promotion of technological development, research and innovation including through cooperation with tertiary education and research institutions and research and technology centres;
  • (iv) development of business networks and clusters;
  • (v) creation and development of financing instruments which facilitate access to revolving financing through venture capital, loan and guarantee funds;
  • (vi) provision of local infrastructure and services which contribute to facilitate establishment, development and expansion of new and existing business;
  • (vii) education and training investments, including for vocational training;
  • (viii) investments in health and social infrastructure which contribute to regional and local development.
2.

Under this component, technical assistance may be granted for preliminary studies and technical support related to eligible activities, including those necessary for their implementation.

Technical assistance may also finance preparatory, management, monitoring, evaluation, information and control activities and activities to reinforce the administrative capacity for implementing the assistance under the IPA Regulation provided through this component.

Article 148
Eligibility of expenditure
1.

Expenditure under this component shall be eligible if it has actually been paid after the signature of the financing agreement following the adoption of the relevant programme. In the case of major projects as referred to in Article 157, expenditure shall not be eligible before the Commission Decision approving the major project has been adopted, as referred to in Article 157(3).

2.

In addition to the rules set out in Article 34(3), depreciation costs for the infrastructures shall not be eligible.

3.

By way of derogation from Article 34(3), operating costs, including rental costs, exclusively related to the period of co-financing of the operation, may be eligible.

Article 149
Aid intensities and rate of Community contribution
1.

For the purposes of this component, the eligible expenditure as referred to in Article 38(1) shall be based on the public expenditure.

2.

The Community contribution shall not exceed the ceiling of 85 % of the eligible expenditure at the level of the priority axis.

3.

No operation shall benefit from a higher co-financing rate than the one relating to the priority axis concerned.

Article 150
Revenue-generating projects
1.

For the purposes of this component, a revenue-generating project means any operation proposed for pre-accession assistance involving an investment in infrastructure, the use of which is subject to charges borne directly by users and which generates revenues, or any operation involving the sale or rent of land or buildings or any other provision of services against payments.

2.

Eligible expenditure for revenue-generating projects, used for calculating the Community contribution in accordance with Article 149, shall not exceed the current value of the investment cost minus the current value of the net revenue from the investment over a specific reference period for (a) investments in infrastructure; or (b) other projects where it is possible to objectively estimate the revenues in advance.

3.

Where not all the investment cost is eligible for co-financing the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the investment cost.

4.

In the calculation, the operating structure shall take account of the reference period appropriate to the category of investment concerned, the category of project, the profitability normally expected of the category of investment concerned and of the application of the polluter-pays principle, and, if appropriate, of considerations of affordability, in particular in the environment sector.

5.

The provisions of this Article do not apply to:

  • (a) operations co-financed under this component, the total cost of which is equal or less than EUR 1 million;
  • (b) revenues generated throughout the economic lifetime of the co-financed investments in the case of investments in firms;
  • (c) revenues generated within the framework of financing instruments which facilitate access to revolving financing through venture capital, loan and guarantee funds.

Section 2 Human resources development component

Article 151
Areas and forms of assistance
1.

The human resources development component shall contribute to strengthening economic and social cohesion as well as to the priorities of the European Employment Strategy in the field of employment, education and training and social inclusion.

2.

In particular, the scope of this component shall cover assistance to persons and focus on the following priorities, the precise mix and concentration of which shall depend on the economic and social specificities of each beneficiary country:

  • (a) increase adaptability of workers, enterprises and entrepreneurs, with a view to improving the anticipation and positive management of economic change, in particular by promoting:
  • (i) life long learning and increased investment in human resources by enterprises and workers;
  • (ii) design and dissemination of innovative and more productive forms of work organisation;
  • (b) enhance access to employment and sustainable inclusion in the labour market of job seekers and inactive people, prevent unemployment, in particular long term and youth unemployment, encourage active aging and prolong working lives, increase participation in the labour market notably by promoting:
  • (i) creation, modernisation and strengthening of labour market institutions;
  • (ii) implementation of active and preventive measures ensuring early identification of needs;
  • (iii) improvement of access to employment and increase of sustainable participation and progress of women in employment;
  • (iv) increase in migrants’ participation in employment, thereby strengthening their social integration;
  • (v) facilitation of geographic and occupational mobility of workers and integration of cross-border labour markets;
  • (c) reinforce social inclusion and integration of people at a disadvantage, with a view to their sustainable integration in employment, and combat all forms of discrimination in the labour market, in particular by promoting:
  • (i) pathways to integration and re-entry into employment for disadvantaged people;
  • (ii) acceptance of diversity in the workplace and non discrimination;
  • (d) promote partnerships, pacts and initiatives through networking of relevant stakeholders, such as social partners and non-governmental organisations, at national, regional, local level, in order to mobilise for reforms in the field of employment and labour market inclusiveness;
  • (e) expand and enhance investment in human capital, in particular by promoting:
  • (i) the design, introduction and implementation of reforms in education and training systems, in order to develop employability and labour market relevance;
  • (ii) increased participation in education and training throughout the life-cycle;
  • (iii) the development of human potential in research and innovation;
  • (iv) networking activities between higher education institutions, research and technological centres and enterprises;
  • (f) strengthen institutional capacity and the efficiency of public administrations and public services at national, regional and local level and, where relevant, the social partners and non-governmental organisations with a view to reforms and good governance in the employment, education and training, as well as social fields.
3.

At the initiative of the beneficiary country, technical assistance may be granted under this component to support the preparatory, management, monitoring, administrative support, information, evaluation and control activities of the programme, and preparatory activities with a view to the future management of European Structural Funds.

4.

Assistance shall focus on those policies and activities which have the potential to act as catalyst for policy change and which enhance good governance and partnership.

Article 152
Eligibility of expenditure
1.

The following expenditure may be eligible for operations falling under the scope of Article 151:

  • (a) depreciation costs under the following cumulative conditions:
  • (i) no national or Community grants have contributed to the purchase of the related investment;
  • (ii) depreciation costs are calculated with the relevant applicable national accountancy rules;
  • (iii) costs relate exclusively to the period of co-financing of the operation concerned;
  • (b) in the case of grants, the indirect costs declared on a flat rate basis up to 20 % of the direct costs of an operation, provided they are incurred in accordance with national rules, including accountancy rules;
  • (c) purchase of furniture, equipment, adaptation and modernisation of existing infrastructures, provided that:
  • (i) the amount concerned for the related operations is subject to a limit of 15 % of the funding under the IPA Regulation for each priority axis of the programme(s) under this component;
  • (ii) investments are necessary for the satisfactory implementation of the programme(s) under this component and contribute to increasing the impact of assistance;
  • (iii) assessment, carried out under the responsibility of the operating structure, has demonstrated that purchase is preferable to other solutions in terms of the best value for money.
2.

By way of derogation from Article 34(3), the following expenditure may also be eligible:

  • (a) taxes, including value added taxes, if they are not recoverable by any means and it is established that they are borne by the final beneficiary,
  • (b) operating costs, including rental costs, exclusively related to the period of co-financing of the operation,
  • (c) rent or leasing, provided that it is exclusively related to the period of co-financing of the operation, and that it is preferable to other solutions in terms of the best value for money,
  • (d) costs relating to a bank guarantee or comparable surety to be lodged by the beneficiary of the grant.
Article 153
Aid intensities and rate of Community contribution
1.

For the purposes of this component, the eligible expenditure as referred to in Article 38(1) shall be based either on the public expenditure or on the total expenditure, the choice applying to the entirety of the programme concerned.

2.

The Community contribution shall not exceed the ceiling of 85 % of the eligible expenditure at the level of the priority axis.

3.

No operation shall benefit from a higher co-financing rate than the one relating to the priority axis concerned.

CHAPTER II Programming

Article 154
Strategic coherence framework
1.

Beneficiary countries shall establish, based on the multi-annual indicative planning document, a strategic coherence framework to be discussed with the Commission. The strategic coherence framework shall constitute a reference document for the programming of the regional development component and the human resources development component.

2.

The strategic coherence framework shall include:

  • (a) a brief analysis, highlighting the strengths, weaknesses, opportunities and threats in the eligible sectors and thematic priorities, under the regional development and human resources development components, where the beneficiary country intends to concentrate its assistance;
  • (b) a description of the objectives pursued under the regional development and human resources development components, in accordance with the relevant national and Community priorities, as set up in the first multi-annual indicative planning document;
  • (c) a list of programmes, with a brief description of the main priority axes under each programme;
  • (d) an indicative breakdown of the financial allocations between the underlying programmes, covering a three years period, in accordance with the multi-annual indicative financial framework and the multi-annual indicative planning document, and the indicative budgetary balance between the underlying programmes for the following years, within each component.
3.

In addition, the strategic coherence framework shall contain, where relevant, provisions about:

  • (a) coordination with other national programmes supported by international financial institutions, or other relevant external assistance;
  • (b) coordination with other IPA components, in particular the rural development component.
4.

The strategic coherence framework shall be a prerequisite for the approval of the programmes under the regional development and human resources development components. It shall be submitted to the Commission prior to, or, at the latest, together with the submission for approval of the first programme under those components.

5.

The strategic coherence framework shall be drafted by the strategic coordinator, under the overall responsibility of the national IPA coordinator.

Article 155
Operational programmes
1.

Assistance shall be implemented through multi-annual operational programmes. These operational programmes shall be drafted by the operating structures. They shall be established in close consultation with the Commission and the relevant stakeholders, and approved through a Commission Decision, in accordance with Article 8(1).

2.

Operational programmes shall contain:

  • (a) an assessment of medium term needs and objectives, highlighting the strengths, weaknesses, opportunities and threats in the relevant sectors, themes and regions;
  • (b) an overview of the consultation of the relevant socio-economic partners and, where relevant, civil society representatives;
  • (c) a description of the chosen strategic priorities, having regard to the strategic coherence framework and the sectoral, thematic and/or geographical mechanisms of concentration of assistance, as well as the results from the ex ante evaluation referred to in Article 57(4) and 166;
  • (d) information on the priority axis, the related measures and their specific targets. Such targets shall be quantified, when appropriate, using a limited number of result indicators. These indicators shall make it possible to determine the progress for implementing the selected measures, including the effectiveness of the targets attached to the priority axis and measures;
  • (e) when some measures are intended to be implemented through aid schemes for enterprises, related modalities shall be described;
  • (f) a description of the technical assistance operations, which shall be undertaken under a specific priority axis. Community support for this priority axis can be up to a ceiling of 6 % of the Community contribution allocated to the operational programme. In exceptional cases and when duly justified with regard to the scope of the programme, this ceiling may reach 10 %;
  • (g) an identification, for each measure, of the intended final beneficiaries, the expected selection modalities and possible related specific selection criteria;
  • (h) a financial table specifying, for each year covered by the applicable multi-annual indicative financial frameworks, for each priority axis and, in an indicative way, for each related measure:
  • (i) the total amount of the Community contribution;
  • (ii) the national contribution, where applicable identifying other external contributions. Where the Community contribution, under the human resources development component, is calculated with reference to the total expenditure, the table shall give the indicative breakdown of the national contribution between its public and private components;
  • (iii) the resulting rate of Community contribution;
  • (i) the proposed evaluation and monitoring indicators and modalities, including indicative evaluation activities and timing;
  • (j) for the regional development component, an indicative list of major projects, accompanied with their technical and financial features, including the expected financing sources, as well as indicative timetables for their implementation;
  • (k) a description of the relevant structures and authorities for the management and control of the operational programme, in accordance with Articles 21 to 26, 28, 29 and 31.
Article 156
Revision of operational programmes
1.

At the initiative of the beneficiary country or the Commission, operational programmes may be re-examined and, where appropriate, the remainder of the programme revised. This review may in particular take place in the following cases:

  • (a) following significant socio-economic changes;
  • (b) in order to take greater or different account of major changes in Community or national priorities;
  • (c) following the revision of the multiannual indicative planning document;
  • (d) in the light of the evaluations referred to in Article 166(2);
  • (e) following implementation difficulties.
2.

The Commission Decision on a request for the revision of any operational programme shall be adopted as soon as possible after its formal submission by the strategic coordinator in coordination with the national IPA coordinator.

3.

Where the revision of an operational programme, as referred to in paragraph 1, extends the eligible scope under this programme, any additional expenditure related thereto shall be eligible from the date of the adoption of the Commission Decision.

Article 157
Major projects under the regional development component
1.

As part of an operational programme, assistance under the regional development component may finance major projects.

2.

A major project comprises a series of works, activities or services and is intended, in itself, to accomplish a definite and indivisible task of a precise economic or technical nature, which has clearly identified goals and whose total cost exceeds € 10 million.

3.

Major projects shall be submitted to the Commission for approval by the relevant operating structure. The Decision approving the project shall define the physical object and the eligible expenditure to which the co-financing rate for the priority axis applies. It shall be followed by a bilateral agreement with the beneficiary country, laying down those elements.

4.

When submitting a major project to the Commission, the operating structure shall provide the following information:

  • (a) information on the body to be responsible for implementation;
  • (b) information on the nature of the investment and a description of its financial volume and location;
  • (c) results of feasibility studies;
  • (d) a timetable for the implementation of the project before the closure of the related operational programme;
  • (e) an assessment of the overall socio-economic balance of the operation, based on a cost-benefit analysis and including a risk assessment, and an assessment of the expected impact on the sector concerned, on the socio-economic situation of the beneficiary country and, where the operation involves the transfer of activities from a region in a Member State, the socio-economic impact on that region;
  • (f) an analysis of the environmental impact;
  • (g) the financing plan, showing the total financial contributions expected and the planned contribution under the IPA Regulation, as well as other Community and other external funding. The financing plan shall substantiate the required IPA grant contribution through a financial viability analysis.

CHAPTER III Implementation

Section 1 General rules

Article 158
Selection of operations
1.

All operations which are not major projects and which are implemented by final beneficiaries other than national public bodies shall be selected through calls for proposals. The selection criteria shall be drawn up by the operating structure and shall be published with the call for proposals.

2.

The operating structure shall set up a selection committee for each call for proposals, which shall analyse and select proposals, and recommend results to the operating structure.

The operating structure shall decide whether to approve the results of the selection procedure and state the reasons for its decision.

The composition of the selection committee and its functioning modalities are defined in the relevant financing agreement.

Article 159
Financial engineering instruments
1.

As part of an operational programme, the Community contribution may finance expenditure related to an operation comprising contributions to support financial engineering instruments for enterprises, such as venture capital funds, guarantee funds and loan funds. Preference shall be given to small and medium-sized enterprises.

2.

Detailed implementing rules shall be set out in the financing agreement following the adoption of an operational programme providing for Community contribution to financial engineering instruments.

Article 159a
Contribution to a Union trust fund for external action
1.

Under the regional development and human resources development components, in pursuing the objectives set out in the relevant operational programme within the respective programme area, operations may be implemented through contributions to EU trust funds.

2.

With regard to the trust fund contribution, the relevant operational programme shall only contain the following information:

  • (a) a summary assessment of the coherence of that contribution with the objectives of the trust fund;
  • (b) for the regional development component, information on the single operation priority axis, also referring to the other priority axes with regard to eligible expenditure which may also cover a share of the management costs of the trust fund, as provided for in Article 187(7) of the Regulation (EU, Euratom) No 966/2012;
  • (c) for the human resources development component, information on the single operation measure under a given priority axis, also referring to the other measures of that priority axis with regard to eligible expenditure which may also cover a share of the management costs of the trust fund, as provided for in Article 187(7) of the Regulation (EU, Euratom) No 966/2012;
  • (d) the identification of the trust fund as final beneficiary;
  • (e) the amount of the contribution.
3.

Articles 150 and 157 shall not apply to trust fund contributions.

4.

The trust fund contribution shall not be subject to ex ante controls pursuant to Article 14; to monitoring by the sectoral monitoring committee pursuant to Articles 59, 167 and 169; to the procedure to select operations provided for in Article 158; and to evaluations pursuant to Article 166.

5.

The relevant financing agreement between the Commission and the beneficiary country shall set out detailed implementing rules with regard to the trust fund contribution. Where appropriate, the relevant operational programme may also set out those rules.

The detailed implementing rules shall concern in particular:

  • (a) the obligations of the authorities in the beneficiary country;
  • (b) reporting, evaluation and monitoring;
  • (c) provisions requiring the amount of the contribution or part of it to be returned, as the case may be, to the relevant programme in the event of liquidation of the trust fund, in accordance with Article 187(5) of Regulation (EU, Euratom) No 966/2012.
6.

Expenditure with regard to a trust fund contribution shall be eligible from the date of establishing that trust fund.

At closure, the certified statement of expenditure shall present the total amount of the contribution for which a decision on the allocation of funds to individual actions has been taken by the operational board of the trust fund up to 31 December 2017 in pursuing the objectives set out in the relevant programme and within the respective programme area.

7.

For a payment application for an interim payment on a trust fund contribution from budget commitments made up to 31 December 2012, the last sentence of the third subparagraph of Article 161(1) shall not apply.

The national authorising officer shall certify in the certified statement of expenditure to be submitted by 31 December 2015 that the contribution was paid to the trust fund identified in the relevant programme.

Section 2 Financial management

Article 160
Payments
1.

Notwithstanding Article 40(5), the combined total of pre-financing and interim payments shall not exceed 90 % of the Community contribution, as set out in the financial table of the operational programmes.

2.

All exchanges concerning financial transactions between the Commission and the authorities and bodies referred to in Article 21 shall be made by electronic means, as provided for in the financing agreement.

3.

In addition to the provisions of Article 42, payments for the pre-financing may amount to 30 % of the European Union contribution for the three most recent years of the programme concerned. Where necessary, with regard to the availability of budgetary commitment, the pre-financing may be paid in two instalments.

Article 161
Acceptability of applications for payment
1.

In the case of a payment application for an interim payment, in addition to the provisions laid down in Article 43(1), the provisions of this paragraph shall apply under the regional development and the human resources development components.

A payment application cannot be accepted if payments have been suspended in accordance with Article 163. The payment application shall certify that all requirements laid down in Article 43(1) and in this paragraph are fulfilled.

The certified statement of expenditure referred to in Article 43(1) shall be drawn up by priority axis and measures. The national authorising officer shall certify that the statement of expenditure is accurate, results from reliable accounting systems and is based on verifiable documents. The national authorising officer shall send this document to the Commission together with:

  • (a) a certificate of expenditure, certifying that the expenditure declared complies with applicable Community and national rules and has been incurred in respect of operations selected for funding in accordance with the criteria applicable to the programme and complying with relevant applicable Community and national rules;
  • (b) the computerised listing of operations by measure and the corresponding expenditure, including contribution under the IPA Regulation, national public and, when applicable, private contributions;
  • (c) the details of amounts recoverable following cancellation of all or part of the Community contribution for an operation;
  • (d) the volume of Community funds in the component-specific euro account at the date of the last debit to which this statement refers and the interest earned.
2.

In the case of a payment application for the payment of the final balance, in addition to the provisions laid down in Article 45(1), the provisions of this paragraph shall apply under the regional development and the human resources development components.

For a payment application to be acceptable, the Community contribution, by priority axis, shall be consistent with the financial table of the operational programme.

The certified statement of expenditure referred to in Article 45(1) shall be drawn up by the national authorising officer and sent to the Commission in accordance with the requirements of paragraph 1 of this Article.

The Commission shall inform the beneficiary country of its conclusions on the content of the audit authority opinion referred to in Article 45(1)(c). This opinion shall be deemed accepted in the absence of observations by the Commission within five months from the date of its receipt.

Article 162
Deadlines for payments
1.

The national fund shall ensure that requests for interim payments for each operational programme are sent to the Commission three times a year. For a payment to be made by the Commission in a given year, the application for payment shall be submitted by 31 October that year.

2.

Subject to available funding, the Commission shall make the interim payment no later than two months after the date on which an application for payment meeting the conditions referred to in Articles 43(1) and 161(1) is registered with the Commission.

3.

Subject to available funding, the Commission shall make the payment of the final balance once the following conditions are fulfilled:

  • (a) the Commission has accepted the sectoral final report on implementation in accordance with the provisions of Article 169(4) and (5);
  • (b) the Commission has accepted the opinion issued by the audit authority as referred to in Article 45(1)(c) and the related activity report set out in Article 29(2)(b) first indent.
4.

The payment deadline may be interrupted by the authorising officer by delegation of the Commission, with the meaning of Regulation (EC, Euratom) No 1605/2002, for a maximum of six months if:

  • (a) in a report of a national or Community audit body there is evidence to suggest a significant deficiency in the functioning of the management and control systems; or
  • (b) the authorising officer by delegation in the Commission has to carry out additional verifications following information coming to his attention alerting him that expenditure in a certified statement of expenditure is linked to a serious irregularity which has not been corrected; or
  • (c) clarifications are needed regarding the information contained in the statement of expenditure.

The national IPA coordinator and the national authorising officer shall be informed immediately of the reasons for the interruption. The interruption shall be ended as soon as the necessary measures have been taken by the beneficiary country.

Article 163
Suspension of payments

The provisions laid down in Article 46 shall apply to all or part of the interim payments at the level of priority axes or programmes.

Article 164
Closure of a programme
1.

The operational programme shall be closed according to the provisions of Article 47(1), the payment of the final balance being determined by the Commission on the basis of the documents referred to in Article 45(1) and Article 161(2).

The Commission shall inform the beneficiary country about the date of the closure of the operational programme.

2.

Notwithstanding the results of any audits performed by the Commission or the European Court of Auditors, the final balance paid by the Commission for the operational programme may be amended within nine months of the date on which it is paid or, where there is a negative balance to be reimbursed by the beneficiary country, within nine months of the date on which the recovery order is issued. Such amendment of the balance shall not affect the date of the closure of the operational programme as set out in paragraph 1.

Article 165
Re-use of Community contribution

The beneficiary country shall inform the Commission of how it proposes to re-use the funds cancelled in accordance with Article 54 and, where appropriate, to amend the financial plan for assistance, in accordance with the provisions of Article 156.

Section 3 Evaluation and monitoring

Article 166
Evaluation
1.

Beneficiary countries shall carry out an ex ante evaluation for each operational programme separately. However, in duly justified cases, and in agreement with the Commission, beneficiary countries may carry out a single ex ante evaluation covering more than one operational programme.

Ex ante evaluations shall be carried out under the responsibility of the operating structure.

Ex ante evaluations shall aim to optimise the allocation of budgetary resources under operational programmes and improve programming quality. They shall identify and appraise the disparities, gaps and potential for development, the goals to be achieved, the results expected, the quantified targets, the coherence, if necessary, of the strategy proposed and the quality of the procedures for implementation, monitoring, evaluation and financial management.

The ex ante evaluation shall be annexed to the operational programme(s) it relates to.

2.

During the programming period, beneficiary countries shall carry out evaluations linked to the monitoring of operational programmes, in particular where this monitoring reveals a significant departure from the goals initially set or where proposals are made for the revision of operational programmes, as referred to in Article 156. The results shall be sent to the sectoral monitoring committee for the operational programme and to the Commission.

3.

Evaluations shall be carried out by experts or bodies, internal or external, functionally independent of the authorities referred to in Article 21. The results shall be published according to the applicable rules on access to documents.

Article 167
Sectoral monitoring committee
1.

In accordance with Article 59, the operating structure shall establish a sectoral monitoring committee for each programme. A single sectoral monitoring committee may be set up for several programmes within the same component. This committee shall meet at least twice a year, at the initiative of the beneficiary country or the Commission.

2.

Each sectoral monitoring committee shall draw up its rules of procedure in compliance with a sectoral monitoring committee mandate set out by the Commission, and within the institutional, legal and financial framework of the beneficiary country concerned. It shall adopt these rules of procedure in agreement with the operating structure and the IPA monitoring committee, in order to exercise its missions in accordance with this Regulation.

3.

The sectoral monitoring committee shall be co-chaired by the head of the operating structure and the Commission. Its composition shall be decided by the operating structure, in agreement with the Commission.

The sectoral monitoring committee shall include the Commission, the national IPA coordinator, the strategic coordinator for the regional development and the human resources development components, the operating structure of the programme. Where appropriate, it shall also include representatives from the civil society and socio-economic partners. A representative of the European Investment Bank may participate in an advisory capacity for those operational programmes to which the European Investment Bank makes a contribution.

4.

The sectoral monitoring committee shall:

  • (a) consider and approve the general criteria for selecting the operations, in accordance, where relevant, with Article 155(2)(g) within six months of the entry into force of the financing agreement on the programme and approve any revision of those criteria in accordance with programming needs;
  • (b) review at each meeting progress made towards achieving the specific targets of the operational programme on the basis of documents submitted by the operating structure;
  • (c) examine at each meeting the results of implementation, particularly the achievement of the targets set for each priority axis and measures and interim evaluations referred to in Article 57; it shall carry out this monitoring by reference to the indicators referred to in Article 155(2)(d);
  • (d) examine the sectoral annual and final reports on implementation referred to in Article 169;
  • (e) be informed of the annual activity report referred to in the first indent of Article 29(2)(b), or of the part of the report referring to the operational programme concerned, and of any relevant comments the Commission may make after examining that report or relating to that part of the report;
  • (f) examine any proposal to amend the financing agreement of the programme.
5.

The sectoral monitoring committee may also propose to the operating structure any revision or examination of the programme likely to make possible the attainment of the programmes' objectives referred to in Article 155(2)(a) or to improve its management, including its financial management.

Article 168
Arrangements for monitoring

Data exchange between the Commission and the beneficiary countries for the purpose of monitoring shall be carried out electronically, as provided for in the financing agreements.

Article 169
Sectoral annual and final reports on implementation
1.

By 30 June each year and for the first time by 30 June 2008, the operating structure shall submit a sectoral annual report to the Commission and the national IPA coordinator.

A sectoral final report shall be submitted to the Commission and the national IPA coordinator at the latest six months after the final date of eligibility of expenditure. The sectoral final report shall refer to the whole period of implementation and include the last sectoral annual report.

The sectoral reports shall be established in relation to the programmes concerned.

2.

Sectoral reports shall be examined by the sectoral monitoring committee prior to their transmission to the Commission and the national IPA coordinator.

3.

Sectoral reports shall include the following:

  • (a) the quantitative and qualitative progress made in implementing the operational programme, priority axes, measures and, where relevant, operations or group of operations, in relation to their specific, verifiable targets, with a quantification, when possible, using the indicators referred to in Article 155(2)(d) at the appropriate level. Where relevant under the human resources development component, the statistics shall be broken down by sex;
  • (b) the financial implementation of the operational programme, detailing for each priority axis and measure:
  • (i) the total expenditure paid out by the final beneficiaries and included in payment applications sent to the Commission by the national fund;
  • (ii) the total expenditure actually committed and paid out by the national fund with the corresponding public or public and private contribution; this shall be accompanied by computerised forms listing the operations, so that they can be followed through from budgetary commitment by the beneficiary country to final payments;
  • (iii) the total payments received from the Commission. Where appropriate, financial implementation may be presented through the major areas of intervention, referred to in Article 5(3)(f), and the regions where assistance is concentrated;
  • (c) for information purposes, the indicative breakdown of the allocation under the IPA Regulation, for the regional development component, by categories, in accordance with the detailed list included in the financing agreement;
  • (d) the steps taken by the operating structure or the sectoral monitoring committee to ensure the quality and effectiveness of implementation, in particular:
  • (i) the monitoring and evaluation measures, including data collection arrangements;
  • (ii) a summary of any significant problems encountered in implementing the operational programme and any subsequent measures taken;
  • (iii) the use made of technical assistance;
  • (e) the activities to provide information on and publicise the programme, in accordance with Article 62;
  • (f) where appropriate for the regional development component, the progress and financing of major projects;
  • (g) where appropriate under the human resources development component, a synthesis of the implementation of:
  • (i) gender mainstreaming as well as of any gender-specific action;
  • (ii) action to increase participation of migrants in employment and thereby strengthen their social integration;
  • (iii) action to strengthen integration in employment and thereby improve the social inclusion of minorities;
  • (iv) action to strengthen integration in employment and social inclusion of other disadvantaged groups, including people with disabilities.

Information referred to in points (d), (g) of this paragraph shall not be included if there has been no significant modification since the previous report.

4.

The sectoral reports shall be considered admissible if they contain all the appropriate information listed in paragraph 3. The national IPA coordinator and the operating structure shall be informed by the Commission of the admissibility of the sectoral annual report within 10 working days from the date of its receipt.

5.

The national IPA coordinator and the operating structure shall also be informed of the Commission's opinion on the content of an admissible sectoral annual report within two months from the date of receipt. For the sectoral final report on an operational programme, this information shall be provided within a maximum of five months from the date of receipt of the admissible report.

TITLE IV RURAL DEVELOPMENT COMPONENT

CHAPTER I Object of assistance and eligibility

Section 1 Object of assistance

Article 170
Additional definitions for the rural development component

For the purposes of this Title, in addition to the definitions laid down in Article 2, the following definitions shall apply:

    1. ‘Community standards’: the standards laid down by the Community in the fields of environmental protection, public health, animal and plant health, animal welfare and occupational safety;
    1. ‘Mountain areas’: the areas referred to in the first subparagraph of Article 50(2) of Council Regulation (EC) No 1698/2005 ([^E0015]);
    1. ‘Young farmer’: a farmer under 40 years of age at the time when the decision to grant support is taken, possessing adequate occupational skills and competence.
Article 171
Areas and forms of assistance
1.

Assistance under this component shall contribute to achieving the following objectives:

  • (a) improving market efficiency and implementation of Community standards;
  • (b) preparatory actions for implementation of the agri-environmental measures and local rural development strategies;
  • (c) development of the rural economy.
2.

Assistance covering the objective set out in point (a) of paragraph 1, hereinafter referred to as ‘priority axis 1’, shall be granted through the following measures:

  • (a) investments in agricultural holdings to restructure and to upgrade to Community standards;
  • (b) support for the setting-up of producer groups;
  • (c) investments in the processing and marketing of agriculture and fishery products to restructure those activities and to upgrade them to Community standards.
3.

Assistance covering the objective set out in point (b) of paragraph 1, hereinafter referred to as ‘priority axis 2’, shall be granted through the following measures:

  • (a) actions to improve the environment and the countryside;
  • (b) preparation and implementation of local rural development strategies.
4.

Assistance covering the objective set out in point (c) of paragraph 1, hereinafter referred to as ‘priority axis 3’, shall be granted through the following measures:

  • (a) improvement and development of rural infrastructure;
  • (b) diversification and development of rural economic activities;
  • (c) improvement of training.

Section 2 General requirements on eligibility and aid intensities

Article 172
Eligibility of expenditure
1.

In addition to the costs mentioned in Article 34(2), the costs referred to in paragraph 3(c) shall be considered eligible under this component.

The technical assistance measures eligible under Article 34(2) are those referred to in Article 182.

2.

In addition to the provisions of Article 34(3), the following expenditure shall not be eligible under this component:

  • (a) the purchase of agricultural production rights, animals, annual plants and their planting;
  • (b) any maintenance, depreciation and rental costs;
  • (c) any cost incurred by public administration in managing and implementing assistance.
3.

Notwithstanding the provisions of Article 34(3), in the case of investment:

  • (a) eligible expenditure shall be limited to the construction or improvement of immovable property;
  • (b) the purchase or lease-purchase of new machinery and equipment, including computer software up to the market value of the asset shall be considered as eligible; other costs connected with the leasing contract, such as lessor's margin, interest refinancing costs, overheads and insurance charges, shall not be eligible;
  • (c) general costs linked to expenditure referred to in points (a) and (b), such as architects’, engineers’ and other consultation fees, feasibility studies, the acquisition of patent rights and licences shall be eligible up to a ceiling of 12 % of the costs referred to in points (a) and (b).

Detailed provisions for the implementation of this paragraph shall be set out in sectoral agreements as defined in Article 7 or financing agreements as defined in Article 8.

4.

Investment projects shall remain eligible for Community financing provided they do not, within five years from the final payment by the operating structure, undergo a substantial modification.

Article 173
Aid intensities and rate of Community contribution
1.

For the purposes of this component, the eligible expenditure as referred to in Article 38(1) shall be calculated on the basis of the public expenditure as defined in Article 2.

2.

Public expenditure shall in principle not exceed a ceiling of 50 % of the total eligible cost of the investment. However, that ceiling shall be raised up to:

  • (a) 55 % for investments in agricultural holdings made by young farmers;
  • (b) 60 % for investments in agricultural holdings in mountain areas;
  • (c) 65 % for investments in agricultural holdings in mountain areas made by young farmers;
  • (d) 75 % for investments referred to in paragraph 4(d) and for investments in agricultural holdings to implement the Council Directive 91/676/EEC ([^E0016]), subject to the existence of a national strategy for its implementation;
  • (e) 100 % for investments in infrastructure not of a nature to generate substantial net revenue;
  • (f) 100 % for measures referred to under in Article 182.
3.

In determining the rate of public expenditure for the purposes of paragraph 2, account shall not be taken of national aid to facilitate access to loans granted without any Community contribution provided under the IPA Regulation.

4.

The Community contribution shall in principle not exceed a ceiling of 75 % of the eligible expenditure. However, that ceiling shall be raised up to:

  • (a) 80 % for the measures covered by priority axis 2 referred to in Article 171(3);
  • (b) 80 % in the case of activities covered by Article 182, where those activities are not taken at the initiative of the Commission;
  • (c) 100 % in the case of activities covered by Article 182, where those activities are taken at the initiative of the Commission;
  • (d) 85 % in the case of investment projects carried out in regions where the Commission determines that exceptional natural disasters have occurred.

Section 3 Eligibility and specific requirements for assistance under Priority Axis 1

Article 174
Investments in agricultural holdings
1.

Assistance referred to in Article 171(2)(a) shall be granted for tangible or intangible investments in agricultural holdings to upgrade them to Community standards and to improve their overall performance.

2.

Assistance under this measure may be granted to agricultural holdings:

  • (a) for which a prospect of economic viability at the end of the realisation of the investment can be demonstrated;
  • (b) which comply with national minimum standards regarding environmental protection, public health, animal and plant health, animal welfare and occupational safety at the time when the decision to grant support is taken.
3.

By derogation from point (b) of paragraph 2, where national minimum standards based on Community standards have been newly introduced at the time the application is received, assistance may be granted regardless of non-compliance with those standard on the condition that the holding shall meet the new standards by the end of the realisation of the investment.

Furthermore, the Commission may, on the basis of duly substantiated request from the beneficiary country, allow derogation from point (b) of paragraph 2 in respect of non-compliance with national minimum standards based on Community standards introduced in the national law up to one year prior to date of submission of the application.

4.

Assistance shall be granted on the condition that the investments comply with the relevant Community standards at the end of their realisation.

5.

Beneficiary countries shall set limits for the total investment eligible for assistance. They shall lay down appropriate standards regarding farmers' occupational skill and competence which the farmers shall be required to comply with in order to be eligible for assistance.

Article 175
Support for the setting-up of producer groups
1.

Assistance referred to in Article 171(2)(b) may be granted to facilitate the setting-up and administrative operation of producer groups, for the purposes of:

  • (a) adapting the production and output of the members of producer groups to market requirements;
  • (b) jointly placing goods on the market, including preparation for sale, centralisation of sale, and supply to bulk buyers;
  • (c) establishing common rules on production information, with particular regard to harvesting and availability.
2.

Assistance under this measure shall not be granted to producer groups which have been officially recognised by the relevant national authority of the beneficiary country before 1 January 2007 and/or before the approval of the programme referred to in Article 184.

Professional and/or inter-professional organisations representing one or more sectors do not qualify as producer groups.

3.

Assistance shall be granted as a flat-rate aid in annual instalments for the first five years following the date on which the producer group was recognised. It shall be calculated on the basis of the group's annual marketed production and shall fulfil the following requirements:

  • (a) amount for the first, second, third, fourth and fifth years to 5 %, 5 %, 4 %, 3 % and 2 % respectively of the value of marketed production up to 1 million euros,
  • (b) amount for the first, second, third, fourth and fifth years, to 2,5 %, 2,5 %, 2,0 %, 1,5 % and 1,5 % respectively of the values of marketed production exceeding 1 million euros,
  • (c) be subject to a ceiling for each producer organisation of:
  • — EUR 100 000 for the first year
  • — EUR 100 000 for the second year
  • — EUR 80 000 for the third year
  • — EUR 60 000 for the fourth year
  • — EUR 50 000 for the fifth year.
Article 176
Investments in processing and marketing of agriculture and fishery products
1.

Assistance referred to in Article 171(2)(c) shall be granted for tangible and intangible investments in processing and marketing of agricultural and fishery products, covered by Annex I to the Treaty. Such assistance shall be aimed at assisting enterprises in upgrading to Community standards and to improve their overall performance. Investments must contribute to improving the situation of the basic agricultural production sector in question.

Investments at retail level shall be excluded from support.

2.

Assistance under this measure may be granted for investments in enterprises:

  • (a) for which the prospect of economic viability at the end of the realisation of the investment can be demonstrated, and
  • (b) which comply with the national minimum standards regarding environmental protection, public health, animal and plant health, animal welfare and occupational safety at the time when the decision to grant support is taken.
3.

By derogation from point (b) of paragraph 2, where national minimum standards based on Community standards have been newly introduced at the time the application is received, assistance may be granted regardless of non-compliance with those standard on the condition that the enterprise shall meet the new standards by the end of the realisation of the investment.

Furthermore, the Commission may, on the basis of a duly substantiated request from the beneficiary country, allow derogation from point (b) of paragraph 2 in respect of non-compliance with national minimum standards based on Community standards introduced in the national law up to one year prior to date of submission of the application.

4.

Assistance maybe granted to investments in establishments which are part of enterprises:

  • (a) which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million, giving priority to investments aiming to align the establishment with all the relevant Community standards; or
  • (b) which employ fewer than 750 persons or have an annual turnover not exceeding EUR 200 million, where the purpose of the investments is to make the establishment comply with the relevant Community standards.
5.

The Commission may, on the basis of a duly substantiated request from the beneficiary country, decide that assistance can also be granted to enterprises not covered by paragraph 4 for investments necessary to meet specific Community standards which involves especially costly investments. Such support may be granted only to enterprises identified in the national plan for upgrading to Community standards specifically intended to make the establishment compliant with the relevant Community standards in its entirety. In such cases assistance shall be granted at half of the aid rate available for the enterprises covered by paragraph 4.

6.

Beneficiary countries shall set limits for total investment eligible for support under this measure.

7.

Assistance to investments in the enterprises referred to in point (a) of paragraph 4 shall be granted on the condition that such investments will comply with the relevant Community standards at the end of their realisation.

Section 4 Eligibility and specific requirements under Priority Axis 2

Article 177
Preparation for implementation of actions relating to environment and the countryside
1.

In order to prepare the beneficiary countries for the implementation of actions referred to in Axis 2 of Council Regulation (EC) No 1698/2005, assistance referred to in Article 171(3)(a), shall be granted to pilot projects covered by Articles 39 and 40 of Council Regulation (EC) No 1698/2005.

2.

Such actions shall aim at developing practical experience of the implementation of actions to improve the environment and the countryside, at both the administrative and farm levels.

Article 178
Preparation and implementation of local rural development strategies
1.

Assistance as referred to in Article 171(3)(b) shall be granted in accordance with Article 61 of Council Regulation (EC) No 1698/2005.

2.

Assistance shall support:

  • (a) the implementation of cooperation projects in accordance with the priorities as referred to in Article 171(1) and within the meaning of Article 65 of Council Regulation (EC) No 1698/2005;
  • (b) the running of the local private-public partnerships, also referred as ‘local action groups’, acquisition of skills, awareness raising activities and promotional events in a view to achieving the objectives as referred to in Article 171(1).
3.

Detailed provisions for the implementation of this measure shall be agreed with the beneficiary country. They shall be consistent with the relevant rules applicable to the European Agricultural Fund for Rural Development as set out in Council Regulation (EC) No 1698/2005.

Section 5 Eligibility and specific requirements under Priority Axis 3

Article 179
Improvement and development of rural infrastructure
1.

Assistance referred to in Article 171(4)(a), may be provided to investments aimed at improving and developing rural infrastructure by:

  • (a) addressing regional disparities and increasing the attractiveness of rural areas for private individuals and entrepreneurial activity;
  • (b) providing conditions for the development of the rural economies.
2.

Priority shall be given to investments in water and energy supply, waste management, local access to information and communication technologies, local access to roads of particular importance for local economic development, and, fire protection infrastructures where justified by the risk of forest fires.

3.

Where local rural development strategies as referred to in Article 171(3)(b) have been established, the investments supported under this Article must be in line with those strategies.

Article 180
Diversification and development of rural economic activities
1.

Assistance referred to in Article 171(4)(b), may be provided to investments aimed at diversification and development of rural economic activities by:

  • (a) raising of the economic activity;
  • (b) creation of employment opportunities;
  • (c) diversification into non-agricultural activities.
2.

Priority shall be given to investments for the creation and development of micro and small enterprises, crafts and rural tourism, with a view to promoting entrepreneurship and developing the economic fabric.

3.

Where local rural development strategies as referred to in Article 171(3)(b) have been established, the investments supported under this Article must be in line with those strategies.

Article 181
Improvement of training
1.

Assistance may be granted to contribute to the improvement of the occupational skills and competence of persons engaged in the agricultural, food, and forestry sectors and other economic actors operating in the fields covered by this component.

Assistance shall not be granted to courses of instruction or training which form part of normal programmes or systems of education at secondary or higher levels.

2.

Beneficiary countries shall elaborate a training strategy for the implementation of the operations envisaged under paragraph 1. The strategy shall include a critical assessment of the existing training structures, an analysis of the training needs and objectives. It shall also establish a set of criteria for the selection of training providers. A description of the training strategy shall be included in the programme.

Section 6 Technical assistance

Article 182
Scope and implementation
1.

Assistance may be granted for activities related to the preparation, monitoring, evaluation, information and control activities which are necessary for the implementation of the programme. These activities shall include in particular:

  • (a) meetings and other activities necessary to discharge the responsibilities of the sectoral monitoring committee for this component, such as studies contracted and realised via expert assistance;
  • (b) information and publicity campaigns;
  • (c) translation and interpretation at the request of the Commission, not including those required pursuant to the application of the framework, sectoral and financing agreements;
  • (d) visits and seminars;
  • (e) activities related to the preparation of measures in the programme to ensure their effectiveness, including those measures whose application is foreseen at a later stage;
  • (f) the interim evaluation of the programme;
  • (g) the establishment and operation of a national network to coordinate activities developed under Article 178 as well as of a future national rural development network consistent with Article 68 of Council Regulation (EC) No 1698/2005.
2.

The sectoral monitoring committee for this component shall be consulted on the technical assistance activities. It shall approve each year an annual action plan for the implementation of technical assistance activities.

3.

Each visit and seminar referred to in paragraph 1(d) not made at the initiative of the Commission shall require the submission of a written report to the sectoral monitoring committee for this component.

Article 183
European Network for Rural Development

Beneficiary countries and organisations established in the beneficiary countries and administrations of beneficiary countries active in the field of rural development shall have access to the European Network for Rural Development established by Article 67 of Council Regulation (CE) No 1698/2005. Relevant detailed provisions shall be agreed with beneficiary countries.

CHAPTER II Programming

Article 184
Programmes
1.

Measures under the rural development component shall be the subject of a programme to be drawn up at national level for agriculture and rural development (hereinafter referred to as ‘the programme’) covering the entire period of IPA implementation. The programme shall be prepared by the relevant authorities designated by the beneficiary country and shall be submitted to the Commission after consulting the appropriated interested parties.

2.

Each programme shall include:

  • (a) a quantified description of the current situation showing disparities, shortcomings and potential for development, the main results of previous operations undertaken with Community and other bilateral or multilateral assistance, the financial resources deployed and the evaluation of results available;
  • (b) a description of the national rural development strategy proposed, based on an analysis of the current situation in the rural areas;
  • (c) a description of the strategic priorities of the programme, based on the national rural development strategy and on an analysis of the sectors concerned, involving independent expertise. It shall also include quantified objectives, indicating for each priority axis set out under Article 171(1) the appropriate monitoring and evaluation indicators;
  • (d) an explanation of how the overall strategic approach and sectoral strategies identified in the multiannual indicative planning document of the beneficiary country are translated into specific actions within the rural development component;
  • (e) an indicative overall financial table summarising the national, Community and, where appropriate, the private financial resources provided for and corresponding to each rural development measure, as well as the EU co-financing rate by axis;
  • (f) a description of the measures chosen from Article 171 including:
  • — the definition of final beneficiaries,
  • — the geographic scope,
  • — the eligibility criteria,
  • — the ranking criteria for selecting projects,
  • — monitoring indicators,
  • — quantified target indicators;
  • (g) a description of the operating structure for the implementation of the programme, including monitoring and evaluation;
  • (h) the names of the authorities and bodies responsible for carrying out the programme;
  • (i) the results of consultations and provisions adopted for associating the relevant authorities and bodies as well as appropriate economic, social and environmental partners;
  • (j) the results and recommendations of the ex-ante evaluation of the programme, including the description of the follow-up undertaken by the beneficiary countries on recommendations.
3.

In their programme, beneficiary countries shall ensure that priority is given to measures to implement the Community standards and to improve market efficiency, and measures to create new employment opportunities in rural areas.

4.

In their programme, beneficiary countries shall ensure compliance with the provisions of the multi-annual indicative planning document.

5.

Unless otherwise agreed with the Commission, beneficiary countries shall submit their programme proposals no later than six months after the entry into force of this Regulation.

Article 185
Adoption and amendments of programmes
1.

The programmes under the rural development component shall be adopted by the Commission within six months of submission of the proposal of the programme, provided that all relevant information is available. In particular, the Commission shall appraise the proposed programme to determine whether it is consistent with this Regulation.

2.

The programme may, if necessary, be amended to take due account of:

  • (a) relevant new information and results relating to the implementation of the actions concerned, including the results of monitoring and evaluation, as well as the need to adjust the amounts of aid available,
  • (b) the beneficiary country's progress towards accession as indicated in the main accession documents, including the multi-annual indicative planning document.
3.

Any proposal for amendments shall be submitted to the Commission by the beneficiary country and shall be duly substantiated, and shall include the following information:

  • (a) the reasons for the proposed amendment;
  • (b) the expected effects of the amendment;
  • (c) amended financial and measure tables, where the proposed amendments are of a financial nature.
4.

Substantial changes with the meaning of Article 14(4) of the IPA Regulation include amendments which involve changes of financial breakdowns among priority axes as referred in Article 171(1) or the co-financing rate by axis or the inclusion of new measures.

5.

The Commission may request beneficiary countries to present a proposal for amending the programme where relevant Community legislation has been amended.

CHAPTER III Implementation

Section 1 Principles and financial management

Article 186
Implementing principles
1.

Implementation of this component shall be carried out by the beneficiary countries on the basis of decentralised management without ex ante controls as referred to in Article 18.

2.

Further provisions may be set out in the sectoral and financing agreements, referred to in Articles 7 and 8.

The provisions shall be consistent with the relevant rules applicable to rural development programmes in the Member States.

Article 187
Calculation of payments

By way of derogation from Article 44, the Community contribution to the programmes under this component shall be calculated by applying the co-financing rate laid down for each priority axis in the financing decision to the eligible expenditure certified in each expenditure declaration, subject to the maximum Community contribution attached to each priority axis.

Article 188
Pre-financing
1.

For the purposes of this component, pre-financing payments may amount to 30 % of the European Union contribution for the three most recent years of the programme concerned. Subject to the availability of budgetary appropriations, pre-financing may be paid in two or more instalments.

2.

In cases where the amounts paid for pre-financing referred to in paragraph 1 are not sufficient to ensure timely payment of claims from final beneficiaries, these amounts may be increased according to the provisions laid down in the sectoral or financing agreements during the period of implementation to cover such needs, provided that the cumulative amount of payments for pre-financing does not exceed 30 % of the Community contribution for the three most recent years as established in the financing decision adopting the multi-annual programmes.

3.

The first instalment of pre-financing shall be paid by the Commission when the conditions laid down in Article 42(1) are fulfilled. Additional instalments may be paid following a request of the beneficiary country in accordance with the requirements provided for in paragraphs 1 and 2.

Article 189
Clearance of accounts

Detailed provisions for the clearance of accounts shall be set out in the sectoral and financing agreements, respectively referred to in Articles 7 and 8. They shall be consistent with the relevant rules applicable to the European Agricultural Fund for Rural Development as set out in Council Regulation (EC) No 1290/2005 ([^E0017]) and the regulations laying down detailed rules for its application. They may in particular provide for consultation of the Committee on the Agricultural Funds.

Article 190
Criteria for financial corrections

By way of derogation from Article 51(2), the Commission shall apply, depending on the findings, either flat-rate corrections, or punctual corrections or corrections based on an extrapolation of the findings.

Section 2 Evaluation and monitoring

Article 191
Ex ante, interim and ex post evaluations
1.

In accordance with Article 57, the programme shall be subject to ex ante, ex post and, where appropriate, interim evaluations carried out by independent evaluators under the responsibility of the beneficiary country.

2.

The evaluations shall assess the implementation of the programme towards the achievement of objectives set out in Article 12 of the IPA Regulation.

3.

Detailed modalities of these evaluations may be set out in the sectoral or financing agreements, respectively referred to in Articles 7 and 8. These modalities shall be consistent with the relevant rules applicable to rural development programmes in the Member States.

Article 192
Sectoral monitoring committee
1.

In accordance with the provisions of Article 59, a sectoral monitoring committee shall be set up by the beneficiary country.

2.

The sectoral monitoring committee shall be composed of representatives of relevant authorities and bodies, and appropriate economic, social and environmental partners. The sectoral monitoring committee shall draw up and approve its rules of procedure.

3.

The sectoral monitoring committee shall be chaired by a representative of the beneficiary country. The Commission shall participate in the work of the sectoral monitoring committee.

4.

The progress, efficiency and effectiveness of the programme in relation to its objectives shall be measured by means of indicators relating to the baseline situation as well as to the financial execution, outputs, results and impact of the programmes.

Article 193
Sectoral annual reports
1.

Under this component, the sectoral annual reports referred to in Article 61(1) shall be submitted to the Commission, the national IPA coordinator and the national authorising officer within six months of the end of each full calendar year of programme implementation.

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