ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS December 2019 © 2018 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW CONTENTS Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org EXECUTIVE SUMMARY IX This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclu- sions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the INTRODUCTION 1 governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, The Sustainable Urban Development Approach for the 2014-2020 Programming Period 6 and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. How have EU countries implemented the SUD 2014-2020? 8 Rights and Permissions CASE STUDIES 15 The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. POLAND 17 Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: pubrights@worldbank.org. The ITI approach in Poland 17 Characteristics of the Sustainable Urban Development Strategies 21 Knowledge integration 25 Institutional Framework 26 Polish Case studies 30 Conclusions 44 ITALY 47 Background 47 Characteristics of the Sustainable Urban Development Strategies 52 Institutional Framework 54 Monitoring and evaluation 54 CZECHIA 57 Background 57 The Czech SUD Approach 60 The Operational Programme Prague – Growth Pole 60 The Czech ITIs 63 DISCLAIMER SPAIN 69 This report is a product of the International Bank for Reconstruction and Development/ Background 69 the World Bank. The findings, interpretation, and conclusions expressed in this paper do not Characteristics of the Spanish Sustainable Urban Development Strategies 74 necessarily reflect the views of the Executive Directors of the World Bank, the European Institutional Framework 78 Commission, or the Government of Romania. The World Bank does not guarantee the accuracy Monitoring and evaluation 78 of the data included in this work. FRANCE 81 Background 81 PORTUGAL 87 This report has been delivered in September 2019, under the Administrative Agreement No. Background 87 2019CE160AT020 (under TF073325) on the Romania Multi-municipality Financing Program, signed Characteristics of the Sustainable Urban Development Strategies 89 between the European Commission and the International Bank for Reconstruction and Development. It Institutional Framework 91 corresponds to Output 4 in the above-mentioned agreement. Monitoring and evaluation 92 GERMANY (NORDRHEIN-WESTFALEN) 93 Annex 1: Thematic Areas covered by the Polish ITIs 164 Background 93 Characteristics of Urban Development Strategy 95 Annex 2: List of Ministries and Operational Programmes 166 Institutional framework 97 Annex 3: ITI funds 167 Monitoring and Evaluation 102 Annex 4: ADI ITI DD Organizational Chart and main Functions 168 FINLAND 103 Background 103 Annex 5: Danube Delta ITI Projects organized by development Pillars 169 Operational Programme 103 Annex 6: Types of interventions possible under the Danube Delta ITI 173 Characteristics of the Urban Development Strategy 104 Institutional Framework 105 Annex 7: How to set up an Urban/Metropolitan Development Funds 184 ENGLAND 109 Steps to implement an Urban/Metropolitan Development Funds 184 Background 109 Advantages of UDF implementation for the 2021-2027 Programming Period 186 Institutional framework 112 Monitoring and evaluation 113 Main challenges of UDF Implementation during the 2021-2027 programming period 187 ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 115 BIBLIOGRAPHY 189 DEDICATED AXIS FOR SUD 117 NON-SUD ITI 123 CLLD 126 FIGURES ADVANTAGES AND DISADVANTAGES OF KEY ORGANIZATIONAL MODELS 129 FIGURE E.1. Mix of Heating Sources in SFBs Before and After the Boiler Replacement Program XI FIGURE 1. NUTS 2 regions classified by Cohesion Policy category and Lagging Region category 4 RECOMMENDATIONS 133 FIGURE 2. Mechanisms for implementing territorial approaches in Cohesion policy 8 MORE RESOURCES 137 FIGURE 3. Allocations (million euros and % of ERDF) and implementation mechanisms More resource allocation – above six percent of ERDF 139 for SUD 2014-2020 9 More resource concentration 139 FIGURE 4. Urban areas in SUD and average allocations 10 More resources for FUAs 140 FIGURE 5. Cohesion Policy support delivered by ITI 11 FIGURE 6. Use of ERDF by type of territory and by territorial instrument 12 MORE DIVERSITY 142 FIGURE 7. Location of SUD Integrated Territorial Investments in Poland. 18 More thematic diversity 142 More territorial diversity 142 FIGURE 8. General thematic objectives of Cohesion Policy: % of all priorities of the Polish ITI strategies. N=22 strategies 24 More organizational diversity 142 FIGURE 9. Detailed thematic objectives of Cohesion Policy: Percentage of Polish ITI strategies. N=22 strategies 25 MORE FLEXIBILITY 149 FIGURE 10. Map of the Central Subregion of the Slaskie Voivodship 31 More organizational flexibility 149 More cooperation flexibility 149 FIGURE 11. Division of the Central Subregion into five sub-regions 35 More operational flexibility 150 FIGURE 12. Map of the Lublin Functional Area 38 FIGURE 13. The metropolitan areas covered by the OP Metropolitan Cities 48 MORE DECENTRALIZATION 150 FIGURE 14. Italian NUTS2 Regions and their level of development 50 More regional decentralization 150 FIGURE 15. Integrated urban development tools used by Czechia for the More local decentralization 150 2014-2020 Programming Period 58 More community decentralization 151 FIGURE 16. The Brno Metropolitan Area 65 FIGURE 17. Vision of Brno ITI Strategy 66 SOME OPTIONS FOR THE SUD 2021-2027 153 FIGURE 18. Strategic pillars of the Brno Metropolitan Area 66 FIGURE 19. Questionnaire with the mayors of the Brno Metropolitan Area 67 CONCLUSION 159 FIGURE 20. The Pilsen Metropolitan Area 68 FIGURE 21. The Spanish Metropolitan Areas, by category FIGURE 22. Process of preparing Integrated Urban Development Strategies in Spain 71 75 Abbreviations and Acronyms FIGURE 23. Integrated Urban Development Strategies in Spain 75 FIGURE 24. Organizational models for interjurisdictional agreement in EU countries 117 AA Administrative Agreement FIGURE 25. Existent metropolitan areas and proposed functional urban areas of AFM Environment Fund Administration county capitals in Romania 120 ANFP National Public Functionaries Agency FIGURE 26. Danube Delta ITI area 123 ANIF National Land Improvement Agency ANL National Housing Agency FIGURE 27. The process of LAG formation 123 ANOFM National Employment Agency FIGURE 28. Rural and small-town LAGs in Romania, for 2014-2020 123 CLLD Community-Led Local Development FIGURE 29. The most productive NUTS2 regions in the EU 123 CNI National Investment Company EBRD European Bank for Reconstruction and Development FIGURE 30. Average SUD allocation per urban areas, in EU countries, for 2014-2020 123 ESF European Social Fund FIGURE 31. Growth Poles and Development Poles in Romania 123 ESFI European Fund for Strategic Investments FIGURE 32. Model implementation mechanisms for FUAs for metropolitan areas 123 ESIF European Structural and Investment Funds ERDF European Regional Development Fund FIGURE 33. Functional urban areas of Bucharest and 40 county capitals 123 ESPON European Spatial Observation Network EU European Union FS Feasibility Study TABLES FUA GDP Functional Urban Area Gross Domestic Product GIS Geographic Information System TABLE 1. Polish ITI models in particular regions 19 GoR Government of Romania TABLE 2. Legal form, size and budget of SUD ITIs in Poland 22 IB Intermediate Body IDA Intercommunity Development Association TABLE 3. Scope of task delegation to local authorities during ITI implementation 28 ITI Integrated Territorial Investment TABLE 4. Key data on Polish case studies 30 IUDP Integrated Urban Development Plans TABLE 5. Allocations for SUD interventions under the Italian ROPs 49 IUDS Integrated Urban Development Strategy JRC Joint Research Center TABLE 6. Thematic priorities covered by the Italian ROPs 51 LAG Local Action Group TABLE 7. The priority axes of the OP Prague - Growth Pole 61 MA Managing Authority TABLE 8. Administrative set-up for the implementation of the OP Prague 63 MC Ministry of Culture MEN Ministry of Education TABLE 9. The Czech ITIs 64 MS Ministry of Health TABLE 10. SUD 2014-2020 allocations in Spain 65 MWSJ Ministry of Work and Social Justice TABLE 11. Specific urban centers in Portugal’s territorial areas 87 MRDPA Ministry of Regional Development and Public Administration MT Ministry of Tourism TABLE 12. SUD allocations in PA 88 NGO Non-governmental organization TABLE 13. SUD allocations in Portuguese ROPs 88 PPP Public-Private Partnership TABLE 14. SUD investment priorities and specific objectives 89 PNCDI National Research & Development and Innovation Program PNDL National Local Development Program TABLE 15. Indicative funding allocations for SUD in Finland 103 PUG General Spatial Plan (Plan Urbanistic General) TABLE 16. Indicators for the Finnish ITI Six Cities Strategies 108 PUZ Zonal Urban Plan (Plan Urbanistic Zonal) TABLE 17. Allocation to SUD in England 110 RAS Reimbursable Advisory Services Agreement RDA Regional Development Agency TABLE 18. ERDF allocations for SUD in England 111 ROP Regional Operational Programme TABLE 19. Allocation of SUD funds by urban area in Romania 118 SUD Sustainable Urban Development TABLE 20. Investment priorities covered under Axis 4 of the ROP 122 SUMP Sustainable Urban Mobility Plan TAU Territorial Administrative Unit TABLE 21. OP Axes for which ITI allocations exist for Danube Delta region (2014 – 2020) 124 TF Trust Fund TABLE 22. Investment Needs by Sector in Romania (in million euros) 138 TP Technical Project TABLE 23. Proposed SUD allocations for 2021-2029 141 UA Urban Authority WB World Bank TABLE 24. How important urban areas are for regional economies. 146 Acknowledgements This report has been delivered under the provisions of the Administrative Agreement on the Romania Multi-municipality Financing Program and prepared under the guidance and supervision of David N. Sislen (Practice Manager, Social, Urban, Rural and Resilience, Europe and Central Asia) and Tatiana Proskuryakova (Country Manager, Romania and Hungary). This report was developed by a team under the coordination of Paul Kriss (Lead Urban Specialist) and made up of Eva- Viorela Sfârlea (Urban Specialist), Marcel Ionescu-Heroiu (Senior Urban Development Specialist), Marius Cristea (Senior Urban Development Specialist), Yondela Silimela (Senior Urban Specialist), Sylwia Borkowska-Waszak (Senior Urban Development Specialist), Ioana Ivanov (Senior Urban Development Specialist), Nic Țarălungă (Lead Urban Development Specialist), Sorina Racoviceanu (Lead Urban Specialist), Reinhold Stadler (Senior Urban Development Specialist), Daiana Ghintuială (Urban Development Specialist), Maria-Magdalena Manea (Operations Specialist), Executive Summary Adina Vințan (Operations Specialist), and George Moldoveanu (Information Assistant). The team would like to express its gratitude for the excellent cooperation, guidance, and feedback provided by the representatives of the European Commission, the representatives of the Romanian Ministry of Regional Development and Public Administration, the representatives of the Romanian Ministry of European Funds, and the multitude of local and regional actors who have helped with the development of this report. . EXECUTIVE SUMMARY XI This report is part of a body of work that looks at various aspects of interjurisdiction cooperation, from assessing sectors/areas for interjurisdictional cooperation in Romania to exploring international case studies and drawing key lessons to inform the 2021-2027 Programming Period, with a focus on the 39 Article 7 urban areas. The report first examines how the Sustainable Urban Development (SUD) approach has been applied across the European Union (EU) and analyzes several case studies in more depth. It then examines organizational models that have been used in Romania to date and concludes by making recommendations on how these can be further refined to enhance their performance. The case studies in the report focus primarily on EU countries that had substantial SUD 2014- 2020 allocations, or innovative SUD approaches. FIGURE E.1. Mix of Heating Sources in SFBs Before and After the Boiler Replacement Program Source: Matkó, Marton. 2016. Sustainable urban development in Cohesion policy programs 2014- 2020, a brief overview. Paper presented at Urban Development Network Meeting, February 18, 2016. It should be noted from the outset that Romania had both one of the largest SUD 2014-2020 allocations, and at 11%, one of the highest ERDF allocations for these types of interventions, exceeding the minimum 5% mandate by the ERDF Regulation. This is a good approach that should be continued for the 2021-2027 Programming Period. XII OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS EXECUTIVE SUMMARY XIII However, the Romanian SUD approach also has a number of deficiencies, such as: • Targeting and cross-regional implementation - Spain used a similar approach to Romania, with the SUD being implemented through a priority axis under the national ROP. • Interventions and projects emanating from interjurisdictional agreements did not have However, the allocation of funds was targeted – with three key priorities,1 municipalities specific eligibility provisions, as such funding went primarily to core cities. with ca 20,000 inhabitants, targeting areas with demonstrable deprivation and • The average allocation per urban area has been relatively low compared to other countries development of integrated plans for areas with demographic and economic handicaps. – i.e. around 30 million euros per urban area in Romania, as opposed to 138 million euros Spain also managed to easily implement ITIs across regions, which is an important in Czech Republic, or 133 million euros in Poland. lesson for Romania. • During the 2014-2020 Programming Period and under the SUD financing window, • Strong monitoring and evaluation– in the 2014-2020 period, France allocated Romanian urban areas could only undertake interventions for four thematic areas, which 10% of ERDF/ESF to ISUD initiatives and between the 2007 -2013 and 2014-2020 is significantly less than in some other countries (e.g. Polish urban areas had access to Programming Periods, tripled the number of participating urban territories. This points 39 thematic areas), meaning that Romanian urban areas, with much larger needs, could to a maturing policy and fiscal focus on the urban agenda. With this maturity also not support all necessary interventions through the SUD approach; came a refinement of the monitoring and evaluation measures put in place. For instance, there is a dedicated coordinating structure for ISUD, which issues a list of suggested • The bureaucratic burden to access SUD funds may be considered disproportionate in indicators covering demographics, housing, employment, etc. Monitoring and evaluation relation to the funds available. are typically undertaken by multiagency monitoring and control committees, and lessons • There is a lack of resource concentration, with large urban areas receiving similar from these interventions are seen as best practices that should be incorporated into all amounts to those of small urban areas (for the same thematic areas), although the other projects. needs vary significantly. For example, Constanța, with around 550,000 people residing in the functional urban areas, had access to 47 million euros under the SUD – as compared • Sectoral integration - Portugal implements the SUD through four Regional Operational to the 22 million euros available for the Sfântu Gheorghe urban area, with only 85,000 Programmes focused on strengthening metropolitan areas and promoting urban people. regeneration in top-level urban centers. The Integrated Urban Development Strategies (IUDS) have to draw on three pre-existing plans: Mobility Plans, Urban Regeneration Looking at the various ways in which EU countries have used the SUD approach to finance Action Plans, and Integrated Action Plans for Disadvantaged Communities. interjurisdictional agreements can provide useful ideas for how the Romanian SUD approach could be improved during the 2021-2027 Programming Period. Some key take-aways from the • Decentralization - Germany has a highly decentralized approach, in which the SUDs comparison are included below: implementation is decided by each of the 16 regional governments. This includes the use of the ITI tool, dedicated priority axes under the Regional Operational Programmes, and • Increased resource allocation and flexibility - Poland relied primarily on the Integrated competitive calls for IUDS implemented through mixed priority axes. Territorial Investments (ITI) tool for implementation of the SUD, with 24 metropolitan areas and urban agglomerations receiving support through this tool. Poland not only • Thematic focus and innovation – Finland’s SUD approach focused on an ITI formed had a higher resource concentration for each metropolitan area / urban agglomeration, by the country’s six largest cities (Helsinki, Espoo, Vantaa, Oulu, Tampere, and Turku). but also access to a higher number of interventions, and a greater flexibility in using EU The primary aim of the ITI strategy is to strengthen Finland’s competitiveness by using funds. This greater flexibility was also made possible by a regional approach, consisting the largest cities as the development and testing environments for innovations. The of 16 Regional Operational Programmes (ROPs) under which the ITIs was nested. In approach is thematically focused, given the small sums each city can access (an average comparison, Romania had only one such program. of 6.6 million euros per city). • Multi-stakeholder engagement - the UK has taken a decentralized approach to • Diversity - Italy has the most diverse SUD approach of any EU country. It has a national SUD implementation, with Local Enterprise Partnerships (partnerships between local OP for metropolitan areas, providing financing to 14 major metropolitan areas in the administrations, private sector, NGOs, and other local actors) in charge of developing country. In addition, 21 regions have implemented the SUD either through ITIs or a SUD strategies. The SUD strategies are delivered through ITIs in the core urban areas dedicated priority axis under their regional OP. Italy and Slovenia are also the only two (i.e. urban areas with more than 600,000 people, which include London, Birmingham, countries in the EU that are jointly implementing a cross-border ITI. Bristol, Leeds, Liverpool, Nottingham Manchester, Newcastle, and Sheffield), focusing on functional urban areas rather than just the core cities. • Multiple funding sources - the Czech Republic had an OP dedicated to the Prague Metropolitan area, and seven ITIs dedicated to the country’s largest metropolitan areas and urban agglomerations. The Prague ITI, while located under the OP Prague – Growth 1 1) Improving the physical and l environment of urban areas (Sustainable Cities) – corresponding to TO4 and TO6 2) Improv- Pole also accessed funding from other OPs. ing the economic dimension and competitiveness of urban areas (Smart Cities) – corresponding to TO2 and 3) Improving the social dimension of urban areas (Inclusive Cities) – corresponding to TO9. XIV OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS EXECUTIVE SUMMARY XV From these various EU case studies, a number of lessons were gleaned, and recommendations made for the Romania SUD 2021-2027 approach. The recommendations are structured around the following four major pillars: 3 I FLEXIBILITY More – in organizational, cooperation, and operating models. Organization flexibility – could include the determination of metropolitan areas, 1 I RESOURCES More – it has been established that urban areas are engines of national economic growth and should therefore receive attention, resources, and support commensurate where, on the basis of a well-articulated integrated metropolitan plan with greater thematic diversity, programs and projects of metro-wide scale could be conceptualized (through participatory processes) and funded directly, without with this role. The more resources proposition has two dimensions – increased quantum going through competitive process. of money directed to urban areas and improved concentration of investment. Cooperation flexibility – in the choice of legal instruments adopted, from the use of Increased quantum of investment targeting urban areas - it is estimated that for the 2 existing structures for less complex and lower capacity areas, to more complex 2021-2029 Implementation Period, municipalities could (sustainably) undertake organizational approaches for complex projects. capital investments of around 16 billion euros. SUD 2021-2027 funding would Operating flexibility – key is the ability to adjust programs and interventions in only cover a small portion of those needs. Thus, at 6% of ERDF/ESF this would response to changing operating environment. equate to only 1.039 billion euros, 11% would equate to 1.905 billion euros, and 15% would equate to 2.598 billion euros. Improved concentration of investment – investment decisions have typically pursued a balanced investment logic. However, SUD funding that tracks areas with 4 I DECENTRALIZATION More – the Romanian system remains highly centralized. There is evidence of improved performance (development results as well as absorption of funds) high population densities, greatest need, and potential to contribute to both in decentralized and well capacitated areas. national economic growth and retard population out-migration – have much higher investment impact. Further, investment should not only be concentrated Regional decentralization - this would entail the creation of Regional Operation in large cities but should follow functional urban areas to better optimize the Programmes (ROPs) with the authority to determine and approve interventions inter-dependencies that characterize urban areas and their peri-urban neighbors. and projects. Local decentralization - enable more extensive involvement of local administrations 2 I DIVERSITY More – one of the key lessons from the case studies is the limiting effect of confining the thematic areas under which interventions could be framed. It is proposed that and establishment of local Intermediate Bodies (IBs). This will require concerted capacity building efforts and resources. SUD in the 2021-2027 Programming Period should support more of the following diversities:: Citizen engagement – refinement and deployment of citizen engagement tools as well as directing capacity building resources to this. Thematic diversity - informed by local realities but responding to the national growth agenda. Territorial diversity - focusing not only on core cities and driving an integrated To anchor the above considerations in program design to further strengthen Romania’s urban development agenda informed by conducting a careful analysis of functional driven-growth agenda, the design of the 2021-2027 SUD should consider the following options: urban areas and their needs to improve their environmental and socio-economic performance. Option 1. Dedicated axis under the ROP 2021-2027, as is the case now, but with a higher concentration Organizational diversity - Romania has three urban typologies: capital cities that are of funds targeted at urban areas, and with the possibility of interjurisdictional agreements or large urban areas with more than 200, 000 inhabitants, and urban areas with project-based partnerships eligible for EU funding. Local administrations that choose to pursue less than 200, 000 inhabitants. It is recommended that in the next programming functional urban area approaches can be incentivized through premium allocations or funding period, lessons be drawn from the Czech Republic approach, which created a lines could be dedicated to strategic projects impacting metropolitan areas. Urban jurisdictions specific OP for Prague – consideration to be given to Bucharest-Ilfov region to should also have a wider menu of intervention fields to choose from – in response to specific have a specific OP to better respond to its specific development needs, given its challenges or opportunities they want to exploit. role in the national and regional space economy. This focus should not be at the expense of other urban areas – there is a clear role for magnet cities to drive national economic growth and these require specific and targeted support. Option 2. A Metropolitan Areas’ Operational Programme (OP), dedicated to growth and development poles 2 World Bank, 2014. Identification of project selection models for the Regional Operating Programme 2014-2020 from the 2007-2013 Programming Period (following the Italian model), with a higher thematic XVI OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS EXECUTIVE SUMMARY XVII diversity, and with eligibility open for all territorial administrative units that are part of the • Based on Article 65, Paragraph 3, the regional MA “may identify one or more metropolitan area / functional urban area of these growth poles and development poles. One, intermediate bodies to carry out certain tasks under its responsibility”. or several axes under this OP could be dedicated to interjurisdictional projects that respond to • Depending on the SUD approach decided at the regional level, local administrations metropolitan or urban agglomeration dynamics. Projects under these axes could be negotiated could play the role of intermediary bodies. Article 23, Paragraph 4 indicates that and prioritized ahead of time and not be subject to competitive selection. All other urban areas “where an urban, local or other territorial authority or body carries out tasks falling could have a dedicated axis in the ROP 2021-2027, similar to the current Axis 13 of the ROP under the responsibility of the managing authority other than the selection of 2014-2020. In addition, for targeted issues, urban areas should have the possibility to form Local operations, the authority shall be identified by the managing authority as an Action Groups (LAG), with other local administrations, private sector representatives, and/or intermediate body.” NGOs. Also, as is the case for the SUD 2014-2020, for thematic areas that are not included specifically in the Metropolitan Areas OP, local administrations should be allowed to access Option 5.2. Maintain the current framework with a national ROP for part of the regions funding from other OPs. and pilot Regional OPs for 3-5 voluntary regions. Within this option, one could have a mix of regional programs: one managed nationally (similar to the one from 2014-2020) and Option 3. 3-5 ROPs managed similar to Option 5.1 in which the function and duties of the MA are ITIs for the seven growth poles, with around 50% of total SUD funding. Another 50% allocated transferred at regional level. Participating in such a pilot program would be voluntary. for the other 32 county capitals under a dedicated priority axis under the ROP (similar to the current Axis 4, but with the adjustments discussed under Option 1). All the other urban areas Option 5.3. Keep a national ROP, with an axis and allocation dedicated to each region, as could have a dedicated axis under the ROP 2021-2027, similar to the approach currently used well as with a consistent transfer of competences to the regions. The global grant model with Axis 13 of the ROP 2014-2020. For targeted issues, urban areas should have the possibility of the Large Infrastructure OP could be used as a model. Within this option, everything is to form LAGs, with other local administrations, private sector representatives, and/or NGOs. For organized under a single regional Operational Programme. However, the particularities of thematic areas that are not included specifically in the dedicated axes, local administrations each region are transposed at the level of specific axis and differentiated allocation. The should be allowed to access funding from other OPs. managing authority at the central level is the exclusive coordinating role of the program, and all other attributions are exercised at the level of RDAs as intermediary bodies. For the SUD Option 4. approach, local administrations could function as secondary intermediary bodies. Urban Development Operational Programme for the current 39 Article 7 urban areas. As discussed under Option 1 and 2, dedicated priority axes should be made available for strategic projects with metropolitan impact. A dedicated priority axis under the ROP 2021-2027 would These options advocate for tailoring of interventions to the needs of each individual urban area. be available for small urban areas, with an approach similar to the current Axis 13 of the ROP With respect to the areas that the ITI tool could be used for, one could have both SUD and non- 2014-2020. For targeted issues, urban areas should have the possibility to form LAGs, with other SUD areas. SUD ITI areas could include: local administrations, private sector representatives, and/or NGOs. For thematic areas that are • Bucharest-Ilfov not included specifically in the dedicated axes, local administrations should be allowed to access funding from other OPs. • Seven regional growth poles (as was done in Poland) – i.e. the metropolitan areas of Brașov, Cluj-Napoca, Constanța, Craiova, Iași, Ploiești, and Timișoara; Option 5. • Three urban agglomerations (Brăila-Galați, Deva-Hunedoara-Simeria, Valea Jiului) Regional Operational Programmes, with the SUD approach decided individually for each region (similar to the Czech approach); (as is the case in Italy). Several sub-options can be considered here, as follows: • Other constituted metropolitan areas could make a compelling case for how an ITI would help with their metropolitan development, particularly in terms of establishing Option 5.1. Eight Regional Operational Programmes with the regional Managing Authority intermunicipal partnerships. In this situation, a strategy competition could be organized, (MA). Within this option, the function and attributions of the MA are transferred at the way it was done in Italy. the regional level to RDAs, taking over some areas from the current nationally managed Operational Programmes. With respect to the non-SUD approach, some options for consideration include: • According to Article 65, Paragraph 1 from the Cohesion Policy proposal, “the • Danube Delta – continuation of the 2014-2020 approach, with a stronger focus on Member State shall identify for each programme a managing authority and an environmental sustainability; audit authority.” The Ministry of European Funds, as national coordinator, could, • Black Sea resorts – similar to the Spanish approach (Azul and Mar Menor), to have for example, identify Regional Development Agencies (RDA) as MAs for the eight integrated investments focused on coastal areas; Regional Operational Programmes (ROP). In accordance with Annex XIV of the Cohesion Policy proposal, the status of the managing authority can be that of a • Apuseni Mountains – an area with severe demographic decline and aging problems; national, regional or local public body, or that of a private entity. • Măgurele Laser Valley – the largest R&D hub in Romania. XVIII OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS To further advance the gains made over the previous programming periods and reflecting on lessons learned in Romania and other EU countries, the report recommends a bolder SUD approach for the 2021-2027 Programming Period that foregrounds and expands the urban agenda. In the next programming period, development partners must tackle not only capital investment challenges, but also address structural challenges such peripherality, capacity, and low quality of institutions. This can be done through better aligned EU, national, and regional policies and resources to create the necessary preconditions for economic growth. Some of the identified cultural and institutional pre-conditions are: Multi-jurisdiction cooperation approaches have evolved as they matured, and government therefore needs to take a long-term view and build in mechanisms and capability for learning and refinement. Multi-jurisdiction cooperation structures that were informed by a clear national urban INTRODUCTION development/growth strategy seem to have been more successful. A national assessment of growth poles and associated Functional Urban Areas (FUAs) that are maintained over time, supported by robust institutional, planning, and fiscal resources, improves the performance of identified urban areas, strengthens urban-rural linkages and satisfies the need to make integrated investments outside the administrative territory. Flexible institutional responses – there is evidence of various approaches to structuring multi-jurisdiction cooperation, from informal (agreements) to formal. The decision on which modality works should be made taking factors like context, capacity, etc. into account. In order to respond to the different levels of capacity and resources, national governments should consider a “deal-making” type of approach to SUD implementation. This would allow for tailored structures, responsibilities and operations while ensuring they meet national and European expectations. Financing - the case studies highlighted the different ways in which these structures and their work were financed. While focus was given to how EU funds were utilized, it is clear that where there was financial certainty (with national funds also being allocated to the same areas and sectors) there was greater success. Clarity of roles and responsibilities - multijurisdictional cooperation requires clear delineation of roles and responsibilities between various parties. Capacity - multi-jurisdiction cooperation requires capacity that may not be typically resident in local municipalities and building this capacity is an important cog in the development of robust urban administrations. This capacity should also focus on building and improving citizen participation and private sector engagement. Finally, even if all these recommendations were put into practice, it is not a guarantee for higher performance among Romanian urban areas. If skillfully deployed, nevertheless, SUD funds can strengthen advantages while addressing disadvantages. This would, of course, require a good understanding of both an urban area’s advantages and disadvantages, and sharpening policy and fiscal instruments to optimize advantages while minimizing disadvantages. INTRODUCTION 3 The mandate of the EU Cohesion’s Policy is to narrow development gaps and reduce disparities between member countries and regions whilst supporting the European Union’s growth agenda more generally. Around 454 billion euros of European Structural and Investment (ESI) Funds have been allocated to help EU regions become more competitive in the 2014-2020 Programming Period, with a focus on less developed regions (with a GDP per capita (PPS) of less than 75% of the EU average) and transitions regions (with a GDP per capita (PPS) between 75% and 90% of the EU average). However, not all EU regions have been able to fully take advantage of the benefits, due to the effects of the 2008 economic crisis and structural problems. Consequently, Ms. Corina Crețu, the Commissioner for Regional Policy, of the Task Force for Better Implementation, initiated the Lagging Regions Initiative to identify growth constraints in less developed regions, and provide targeted assistance and programs to foster growth. Thus, lagging regions development support is offered to a broad range of stakeholders (regional and local administrations, educational institutions, business support institutions, small and medium enterprises (SMEs), entrepreneurs, investors, Non-governmental organizations, international financing institutions). It is meant to maximize the impact of regional investments. Two types of lagging regions were identified in the EU: • LOW GROWTH REGIONS: cover less developed and transition regions that did not converge to the EU average between the years 2000 to 2013 in member states with a GDP per capita (PPS) below the EU average in 2013. These include almost all the less developed and transition regions of Greece, Italy, Spain, and Portugal. • LOW INCOME REGIONS: cover all the regions with a GDP per capita (PPS) below 50% of the EU average in 2013. This group covers the less developed regions of Bulgaria, Hungary, Poland, and Romania. Poland and Romania were the first countries to pilot this initiative, with two regions each – Świętokrzyskie and Podkarpackie in Poland, and Northwest and Northeast in Romania. Since these first pilot projects, the work has been extended both thematically and geographically (e.g. Slovakia was included in the initiative), with a focus on determining how regions can become more competitive and inclusive. 4 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS INTRODUCTION 5 FIGURE 1. development in urban areas (Sustainable Urban Development), either through a dedicated NUTS 2 regions classified by Cohesion Policy category (left) and Lagging Region category (right) Operational Programme, a dedicated priority axis, within an Operational Programme, or with the help of tools such as Integrated Territorial Investments (ITI) or Community-Led Local EU Cohesion Policy region Lagging region More developed Low income Development (CLLD). The European Commission also wants to offer “more incentives for a more Transition Low growth effective governance based on partnership, multilevel governance and an integrated place- Less developed Non-EU or No data based approach in its programmes.”4 Thus, all EU member countries, Romania included, have to have a stronger focus on cross-sectoral and interjurisdictional approaches, and better respond to the needs of territories that may not be defined by one clear administrative boundary. With this in mind, a new Administrative Agreement (AA) for the Romania Multi-municipality Financing Program was signed between the European Commission and the International Bank for Reconstruction and Development with the objective to support Romania, identify ways to improve the impact of its investments in urban areas through better territorial planning, and provide inputs into the design of multi-municipal financing instruments and recommend relevant institutional structures. The following activities are envisaged under the project: • Activity 1. Identification of intervention areas/sectors, in which there could be intrinsic added value for channeling EU funding through municipalities, FUA /metropolitan and/ or regional associative bodies (such as IDAs, RDAs etc.) in place of, or in addition to, 0 250 500 1,000 km 0 250 500 1,000 km national authorities responsible for functions such as health, tourism, energy, education, social services, urban and metropolitan/regional transport, competitiveness, and support for SMEs and innovation, etc. Analytical work undertaken in recent years3 indicates that the performance of regions in the • Activity 2. Analysis of the need for overall or sector specific forms of territorial EU is clearly linked to the performance of urban areas within the region. The most dynamic cooperation (such as metropolitan IDAs, project-oriented partnerships between TAUs, EU regions either have one or more metropolitan areas or urban agglomerations within their etc.), for instances in which EU funding could be organized at the subnational level. These boundaries, or they are close to one in another region. Without strong urban areas, one cannot forms of cooperation could come to complement or supplement the current model used have strong regions. Cities function as pulse beacons, diffusing development to the areas around for EU funding, which focuses only on the administrative territory of the eligible county them. seats. Strong cities are not enough though. To ensure that the benefits of city development also spill • Activity 3. If the opportunity for such an intercommunity or regional model is confirmed over to the urban hinterland, it is critical to devise and encourage interjurisdictional cooperation for any of the intervention areas/sectors under analysis, the project will identify suitable and development. Few urban investments nowadays have impact only on one administrative organizational models (for example, establishing a new intercommunity association or unit, so provisions should be in place for interjurisdictional planning and implementation. For making use of an existing one, or ad-hoc initiatives, such as a partnership agreement example, the suburban and peri-urban areas of Bucharest and the 40 county capitals generate for a certain investment project), feasible within the Romanian context, for each of the 20% of firm revenues in the country, have attracted 31% of migrants, and have received 32% of intervention areas/sectors. new housing units after 1990. However, little has been done to foster interjurisdictional dynamics between core cities and their suburban and peri-urban areas (e.g. metropolitan mobility, cross- • Activity 4. In case EU funding is proposed on a new, alternative organizational model, jurisdictional investments, sharing of services). different from the ones already existing in Romania and based on international best practices, establish the implications for: For the 2021-2027 Programming Period, the European Commission proposed that the European Regional Development Fund (ERDF) will have a stronger focus on sustainable urban development i. The need for integrated urban development strategies/plans. (SUD) activities, with member states having to allocate least 6% of ERDF funds for integrated ii. The need to strengthen administrative capacity, at different levels. 3 See for example: Farole, Thomas, Soraya Goga, and Marcel Ionescu-Heroiu. 2018. Rethinking Lagging Regions: Using Cohesion 4 European Commission. 2018. Policy Objective 5 – Europe Closer to Citizens and Tools for Integrated Territorial Development Policy to Deliver on the Potential of Europe’s Regions. World Bank Publications. [Policy Paper]. 6 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS INTRODUCTION 7 This report corresponds to Activity 3 listed above. The report looks at the mechanisms or Against this background, the EU’s concern with an urban dimension has been gaining in organizational models used by EU member states in implementing the SUD in the 2014-2020 prominence. The explicit interest in urban areas dates back to 1998, when the first Urban Forum Programming Period. A number of case studies are discussed in depth, to better understand the in Vienna was launched. Since then, a large number of initiatives and instruments (URBACT, organizational models used and the degree to which these models have helped respond to the URBAN, CITIES, etc.) have been adopted. URBACT functions primarily as a knowledge-exchange development needs of urban areas. The focus will be on multilevel governance agreements for platform, enabling urban authorities to network and learn from each other. The current urban urban areas. dimension in the Cohesion policy can be seen as part of the wider development of an EU urban agenda of which one of the latest formulations is presented in Box 1. The Sustainable Urban Development Approach for the BOX 1. THE EU URBAN DIMENSION 2014-2020 Programming Period On 17-18 February 2014 the European Commission organized a major forum, CITIES - Cities of The urban dimension of the Cohesion Policy has been strengthened for the 2014-2020 period. Tomorrow: Investing in Europe, to discuss how the urban dimension of EU policymaking can be This followed a period of conceptual reflection on the role of the social cohesion policy, particularly strengthened, and how the key role of cities in EU and national policies can be better recognized. from 2008 to 2011.5 The Urban Community Initiative was first launched in the 1994-1999 The main aim of the forum was to initiate discussion on the development of an EU Urban Agenda which: Programming Period, continued in the 2000-2006 Programming Period, and integrated into the Investment for Growth and Jobs programs in the 2007-2013 period. The Urban Community • fosters the role of the European Union as a facilitator of urban development; Initiative started from the premise that cities play a key role in the development of a region • further integrates sector policies and making them better adapted to urban realities; and the country as a whole, and appropriate integrated urban development measures should and be adopted to help urban areas perform better. Developments in thinking about place-based approaches were particularly influential6 and were given credence by a number of influential • provides leverage to strengthen national urban agendas. reports.7 In general, these approaches argue that space shapes the potential for development not Source: CITIES Forum - Cities of Tomorrow: Investing in Europe. only of the territories, but, through externalities, of the individuals who live in them. Hence (it is argued), development strategies should not be (and, in fact, are not) space-neutral but need to be The nature of these challenges requires an integrated mix of interventions in order to increase explicitly place-based, and highly contingent on context. As the Barca Report stated8: their impact and to fully exploit the development potential of different types of territories. There is a particular focus on fostering sustainable urban development through integrated strategies in A place-based policy is a long-term strategy aimed at tackling persistent underutilization order to strengthen the resilience of cities. of potential and reducing persistent social exclusion in specific places through external interventions and multilevel governance. It promotes the supply of integrated goods and The increased recognition of the urban dimension stems from the premises that: services tailored to contexts, and it triggers institutional changes. … In a place-based policy, public interventions rely on local knowledge and are verifiable and submitted to • Urban centers are important areas of economic growth and as such play a key role in the scrutiny, while linkages among places are taken into account. Cohesion Policy and meeting the objectives of the Europe 2020 strategy; • The challenges that urban areas face – economic, social, and demographic are interwoven The logic of the place-based approach is grounded in two assumptions. First, geographical context and therefore measures targeting different development issues should be combined; matters and is particularly concerned with the heterogeneous nature of urban systems. Second, it • Integrated urban development strategies can achieve a more effective and efficient focuses on the issue of knowledge in policy interventions (mix of local understanding of issues and delivery of public policy through the integration of different funding streams and new, external knowledge to tackle challenges) and advocates multilevel governance and partnership- instruments; and based approach with strong interactions between layers of government and wider actors. In the EU, regional development policy operates within a particularly complex institutional and multilevel • More influence for localities in decision-making structures improves implementation. governance context, which is fundamental to the nature and the operation of the Cohesion Policy. Integrated territorial approaches in the Cohesion Policy are intended to target various types of territories through different tools. Article 7 of the ERDF Regulation requires five percent of ESI 5 Funds to be allocated to Integrated Sustainable Urban Development (ISUD) and for which eligible Tosics, I. (2015) Integrated Territorial Investment – a Missed Opportunity? Paper presented at: Challenges for the New Cohe- sion Policy 2014-2020 2nd Joint EU Cohesion Policy Conference Riga February 2-4, 2015 areas have to draft an urban development strategy. This approach is based on two principles: 6 van der Zwet, A. and Mendez, C. (2015) Towards a Europe of the Localities? Integrated place-based approaches in Cohesion resources should be concentrated in an integrated manner to target areas with specific urban policy in 2014-20 and beyond Paper presented at: Challenges for the New Cohesion Policy 2014-2020 2nd Joint EU Cohesion Policy Conference Riga February 2-4, 2015 challenges; and at the same time, ERDF-funded urban development projects should be integrated 7 Barca F (2009) An Agenda for a Reformed Cohesion Policy, A Place-Based Approach to Meeting European Union Challenges into the wider objectives of the programs. The main elements of the new approach are: and Expectations, DG REGIO.; OECD (2009). How Regions Grow. Paris: Organisation for Economic Growth and Development; OECD (2009b). Regions Matter: Economic Recovery, Innovation and Sustainable Growth. Paris: Organization for Economic • Support for the development of more holistic integrated urban development strategies; Growth and Development. 8 Barca F (2009) op. cit. 8 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS INTRODUCTION 9 • Stronger focus on urban development at a strategic level; to around 10.5 billion euros, with an uneven distribution among countries. Urban development • Investment priorities that specifically tackle urban development challenges; interventions were in some cases delivered through dedicated priority axes (e.g. the Romanian Region Operational Programme 2007-2013 had Priority Axis 1 dedicated to Growth Poles, • Tools to deliver integrated actions; Development Poles, and Urban Centers), but more commonly they were delivered through priority • Potential to use financial instruments to support urban development; axes with a broader thematic scope. • Minimum of five percent ERDF ring-fenced funding; For the 2014-2020 Programming Period, urban development interventions have become more • More decision-making powers for urban authorities; prominent and structured. For one, the allocation for integrated urban development interventions • Support for innovative urban actions; and increased. According to 2019 estimates, around 31 billion euros will be spent on Article 7 interventions • Strengthening networking (Urban Development Network and European Territorial through various mechanisms, with each member state having had to allocate at least five percent Cooperation). of ERDF allocations for SUD interventions, with various options for doing so. For another, more responsibilities for the implementation of SUD interventions were passed down to the local level. One of the novelties of this approach is the requirement to delegate implementation tasks for At a minimum, local administrations had to establish urban authorities tasked with identifying a interventions that are programed as part of the minimum five percent ERDF share to implement package of integrated priority interventions. Furthermore, the ERDF regulation promotes innovation ISUD. Furthermore, the regulation encourages the introduction of innovation and experimentation and experimentation at the urban level (Article 8 of Regulation 1301/2013) and the introduction (Urban Innovative Actions, Article 8 of Regulation 1301/2013) and the introduction of an Urban of an Urban Development Network (Article 9 of Regulation 1301/2013). The mechanisms available Development Network to deepen the discussion on the implementation of urban investments to implement SUD interventions are highlighted in Figure 2. A recent analysis showed that 114 and development projects (Article 9 of Regulation 1301/2013). ERDF-funded Operational Programmes include SUD interventions for the 2014-2020 Programming Period – either through national OPs, multiregional OPs, or regional OPs. FIGURE 2. Article 7 can be implemented using a number of Mechanisms for implementing territorial approaches different approaches and instruments. Figure FIGURE 3. in Cohesion policy 2 provides an overview of these possibilities. Allocations (million euros and % of ERDF) and implementation mechanisms for SUD 2014-2020 ISUD can be implemented through mainstream approaches (i.e. in a similar way to how other ESI Funds are implemented) as either a separate Operational Programme (OP) or a separate Priority Axis. Alternatively, ISUD can also be implemented through the new approaches, most notably through ITI, although Community-Led Local Development (CLLD) can also contribute towards ISUD requirements. ITI and CLLD have a much broader application and can also target urban areas outside the ISUD context or other types of territory (rural-urban, subregional, rural, cross Source: Van der Zwet A, Miller S and Gross F. 2014. A First Stock Take: Inte- border and territories with specific geographic grated Territorial Approaches in Cohesion Policy 2014-20. IQ-Net Thematic features) (see Figure 2). Paper 35(2), European Policies Research Centre, University of Strathclyde, Glasgow. Source: Matkó, Marton. 2016. Sustainable urban development in Cohesion policy programs 2014- 2020, a brief overview. Paper presented at Urban Development Network Meeting, 18 February 2016. How have EU countries implemented the SUD 2014-2020? Around 7.8 percent of the total ERDF funding, or around 14.5 billion euros, was allocated for For the 2007-2013 Programming Period it is estimated that around 11 percent of total ERDF SUD interventions, with quite a bit of variations between member states, both in terms of funding, or roughly 29 billion euros, was allocated to urban development and social infrastructure overall allocation and mechanisms used. Countries with a larger allocation of EU funds tended investments.9 Investments that focused squarely on urban development were limited, however, to also have a larger SUD allocation. Most countries have used only one mechanism for the implementation of the SUD – predominantly the ITI tool, or a priority axis under an OP. Italy stands out with three mechanisms, with roughly the same allocation used. 9 European Commission. 2015. Ex post evaluation of Urban Development and Social Infrastructures, Final Report, Work Pack- age 10, available at : http://ec.europa.eu/regional_policy/sources/docgener/evaluation/pdf/expost2013/wp10_final_en.p df 10 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS INTRODUCTION 11 A general overview of the SUD mechanisms indicates that countries that used the ITI tool for FIGURE 5. implementation of the SUD, did not only allocate more resources for such interventions, but were Cohesion Policy support delivered by ITI also more targeted (focusing on a smaller number of urban areas) and more integrated. Urban areas using ITIs were on average twice the size of the urban areas using a priority axis, and they had larger and more diverse development envelopes. For example, ITIs had twice the scope of thematic funding that priority axes offered. FIGURE 4. Urban areas in SUD and average allocations Source: Matkó, Marton. 2016. Cohesion policy framework for integrated, sustainable urban development. Work Group IUD, 22-24 March Brussels. Marton Matko provides a very useful summary both of the Urban Dimension of the Cohesion Policy for 2014-2020, and an illustrative graphic of the various instruments used to support and Source: Matkó, Marton. 2016. Sustainable urban development in Cohesion policy programs 2014- 2020, a brief overview. Paper encourage urban development initiatives in the EU11: presented at Urban Development Network Meeting, February 18, 2016. • Sustainable urban development (ERDF Art 7) This point is of critical importance to the next programming period for Romania. For 2014- • Integrated urban development strategies => more than 800 urban areas involved 2020, urban areas in Romania had access to relatively limited funding under Axis 4 of the ROP • Earmarked funding (min 5%) => 15 billion euros – around 1.3 billion euros for 39 urban areas with around 8.9 million people, roughly the same • Delegated powers = cities responsible for project selection as the allocation for the Danube Delta ITI, with around 200,000 people. Moreover, the types of interventions urban areas could undertake with funding from Axis 4 of the ROP were limited- the • Urban innovative actions (Art 8) 39 urban areas in Romania fund activities under four thematic areas while the 24 urban area • funding for experimentation, 370 m euros, themes linked to urban agenda ITIs in Poland fund activities under 39 thematic areas. ITIs provide more flexibility, as funding • First call: 16 of 18 winners are EUROCITIES members can be drawn from different funding sources, not just the ERDF, but also from the ESF and • Urban development network indirectly from the CF. • Capacity building, networking and sharing knowledge for Art 7 and UIA cities In total, 20- member states have chosen to use the ITI tool, with 12 using it for non-SUD • URBACT interventions. According to data collected10, total ESIF allocations for ITI interventions sum up • EU-wide learning program for cities via thematic networks to around 13.8 billion euros (see figure below). Around 28 percent of ITI funding is concentrated in Poland alone. Around 80 percent of ITI funding is concentrated in nine- member states. • Territorial instruments • ITI: combining different funding sources to implement integrated strategy • CLLD: to empower local communities to implement their local strategy • “Urban” investment priorities in ERDF TOs • E.g. brownfield regeneration, deprived communities, multimodal urban mobility 11 Matkó, Marton. 2016. Cohesion policy framework for integrated, sustainable urban development. Work Group IUD, 22-24 10 Ibid. March Brussels. 12 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS FIGURE 6. Use of ERDF by type of territory and by territorial instrument Source: Matkó, Marton. 2016. Cohesion policy framework for integrated, sustainable urban development. Work Group IUD, 22-24 March Brussels. Although the implementation of SUD in the 2014-20 period can be analyzed in three categories (priority axis, OP or ITI), there is considerable variation across member states resulting in many unique approaches across the EU. Several case studies will be discussed in more depth the mechanisms and organizational models used by a selection of member countries to implement the SUD for the 2014-2020 Programming Period. CASE STUDIES CASE STUDIES - POLAND 17 Poland This section provides an overview of the Polish approach to implementing Integrated Sustainable Urban Development (ISUD) for the 2014-2020 Programming Period. Poland chose to use a single instrument for this purpose, namely Integrated Territorial Investments (ITIs), and thus created an individual model for its implementation. In the first section, the Polish ITI system will be analyzed following the four dimensions of integration included in the “place-based approach” of the EU Cohesion Policy. The approach was introduced in Fabrizio Barca’s Report, and currently constitutes the foundation for all SUD instruments. The four dimensions of the “place-based approach: include: Geographical integration, highlighting the specificity of places, their challenges and development needs, as well as the need to approach these challenges looking beyond typical administrative boundaries; Integration of interventions, focusing on the synergy effect of multiple, diverse, and complementary investment in a single territory; Integration of knowledge, including local actors in diagnosing the needs and challenges of a particular area, and designing potential solutions; Integration of governance, empowering local actors by decentralizing the administration of EU funds, in a way that raises their responsibility for the process and allows higher scope of coordination among authorities. The second section will provide a more detailed analysis of particular examples of ITI implementation in two functional urban areas. It will characterize the key institutional mechanisms used in both places and discuss their functionality in terms of intermunicipal collaboration, efficient policy implementation, and prospect of future endurance. The ITI approach in Poland This section is based mostly on the content of Polish ITI strategies, and policy documents related to ITI programming and implementation. It explains the typology of urban areas, their delimitation, and the differences between Polish ITI regions. Later, the section also discusses the collaboration mechanisms during ITI implementation, and the general background of intermunicipal collaboration in Poland. Geographical integration EU member states could decide on the type of territories targeted by the SUD instruments. Nearly half of the countries preferred to stay within the administrative borders of cities, while others preferred to narrow down the area to a particular district or extend it to a geographical area of mountains or islands. Poland, like a third of member states, decided to focus the SUD approach on Functional Urban Areas (FUA). This model requires cooperation between the core city (or cities) and surrounding localities. Encouraging such partnerships was one of the main aims of the ITI policy in Poland, as there have not been many instruments to incentivize Polish local authorities to coordinate their investments and solve joint problems. 18 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 19 In comparison to other countries implementing ITIs, Poland kept a balance between the number Delimitation of FUAs and size of targeted territories. There are 24 SUD strategies targeting FUAs in all of the Polish The delimitation of FUAs has been a challenging endeavor. The Ministry of Development ordered regions. Within those, 17 address regional capitals and seven sub-regionally important cities. ITI an expertise that would indicate which municipalities are functionally connected with major strategies of FUAs are built into the objectives of the Regional Operational Programmes. Each cities in Poland. The analysis conducted by academics from the Polish Academy of Sciences of the 24 targeted functional urban areas prepared a strategy for ITI implementation. Six FUAs (Śleszyński, 2013), remained the main basis for the ITI FUA delimitation. However, in many cases are located around the biggest cities in Poland and consist of metropolitan areas with over one the list was extended by a few municipalities (in Figure 7, marked in light blue, next to the million inhabitants. The other ITIs are for urban areas of subregional importance or medium- municipalities included originally in the analysis, marked in green) on the basis of the historical sized urban areas (200,000-650,000 inhabitants in the FUA). Non-SUD ITIs are located around links and the will to collaborate (Kaczmarek & Kociuba, 2017, p. 55; Krukowska & Lackowska, small or medium towns (70-200,000 inhabitants). The total population covered by the strategies 2017, p. 281). In other cases, the number of municipalities was limited (in Figure 7, excluded is around 18 million, which is nearly 50% of Polish inhabitants. More details on the population jurisdictions have been marked in dark grey). Consequently, there is a broad range in the number covered by particular FUAs can be found in Table 2. To see the location of particular FUAs of partners included in FUAs (from to 5 to 81). implementing ITIs, see Figure 7. The focus on the biggest cities and their functional areas was a decision taken at the ministerial level. Initially, the idea was to limit ITI funding only to FUAs of the regional capitals). This was FIGURE 7. disputed by the local and regional authorities (Kozak, 2016b), and some of them successfully Location of SUD Integrated Territorial Investments in Poland. lobbied to extend the ITI funding for a number of chosen sub-regional FUAs. In a few regions, additional ITIs were not created, but the regions decided to allocate part of the ROP funds to a few more FUAs (Frankowski & Szmytkowska, 2015). These FUAs are not targeted by the earmarked funding based on Article 7 of the ERDF Regulation, and are usually called non-SUD ITI, to distinguish from SUD ITIs funded from Article 7. Consequently, there are a few models of regional ITIs in Poland (Ferry, Borkowska-Waszak, 2018): One SUD ITI in a region (Podlaskie, Podkarpackie, Opolskie, Kujawsko-Pomorskie, Lodzkie); Several SUD ITIs in a region (Lubuskie, Slaskie, Dolnoslaskie, Zachodniopomorskie, Wielkopolskie); One SUD ITI and a few non-SUD ITIs (Warminsko-Mazurskie, Lubelskie); One SUD ITI and a mechanism of ‘para-ITI’ dedicated to smaller towns, funded from ROP (Pomorskie, Mazowieckie, Malopolskie); and Horizontally: FUA around 1 city, or multiple cities (Bydgoszcz-Torun, Koszalin-Kolobrzeg- Bialograd, Central Subregion, Gulf of Gdansk, Kalisz-Ostrow Wielkopolski). The ITI models can be put into eight groups. Consequently, the context and following problems of ITIs vary substantially. TABLE 1. Polish ITI models in particular regions One SUD ITI Several SUD ITIs Several SUD ITIs One SUD ITI ITI Model and a “para-ITI” in a region in a region in a region mechanism • Lubuskie, • Lubuskie, • Podlaskie, • Dolnoslaskie, • Dolnoslaskie, • Podkarpackie, One main Partially: Partially: • Mazowieckie, • Opolskie, city • Slaskie • Slaskie • Malopolskie • Lodzkie • Zachodniopomorskie, • Zachodniopomorskie, • Swietokrzyskie • Wielkopolskie • Wielkopolskie Partially: Multiple • Slaskie • Kujawsko- main x • Pomorskie Source: Wolański et al, 2018 Pomorskie • Zachodniopomorskie, cities • Wielkopolskie 20 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 21 Forms of cooperation (2004-2006), URBACT (2007-onwards) and JESSICA (Kaczmarek & Kociuba, 2017; Krukowska & Lackowska, 2017). However, these instruments did not stimulate an integrated approach such as The issues pertaining to the legal form of intermunicipal cooperation were not solved from intermunicipal cooperation, which resulted in a fragmentation of EU investments. Consequently, the beginning of the process. In Poland, there are four legal possibilities for multijurisdictional there were cases of very similar, competing investments in neighboring communities, neither partnerships: of which are currently sustainable, bringing debts to both municipalities (e.g. the case of two Intermunicipal agreement; aquaparks built in neighbouring municipalities; Różalski, 2012). Also, domestic policies did not Intermunicipal association; stimulate integrated urban development, at least not to the extent that was desired following the introduction of the EU urban agenda in 2014. The biggest innovation of ITIs in this regard is Intermunicipal union; or a partnership approach to urban development. The introduction of ITI mechanism has facilitated Intermunicipal company. new intermunicipal collaboration structures, or formalized and activated some of the existing collaborative initiatives (Krukowska & Lackowska, 2017, p. 279). Before it is, Poland did not have Initially, the Ministry of Development wanted all municipalities in an agreed-upon FUAs to any instruments directly supporting the creation of metropolitan institutions with independent create an association. On the other hand, local authorities had various ideas of possible forms of tasks, resources and funding, and interlocal collaboration focused on bilateral service contracts cooperation. In the end, the ministry decided to allow two forms of cooperation: an agreement or (Swianiewicz, 2016). A more developed and matured intermunicipal collaboration system promises an association. The first form of collaboration is the simplest, in which partnering municipalities major added value and is set to improve the integration of local development interventions. do not form a separate entity, but voluntarily collaborate on a particular issue (in this case ITI implementation). They sign an agreement specifying key collaboration rules (e.g. voting during Characteristics of the Sustainable Urban Development assembly meetings, etc.) and delegate the main joint tasks to the association leader (usually the core city of an agglomeration). Associations, on the contrary, are new institutions, with Strategies municipalities as official members. They usually have a more complex structure (executive board The SUD strategies in Poland should be analyzed from two perspectives of the integration of and its president, secretariat, advisory board), more detailed collaboration rules, and a broader planned investments: funding sources and the thematic scope of ITI strategies. These aspects scope of tasks. In the context of ITI implementation, the main difference was in who was given of the Polish ITI system will be discussed below. Additionally, they will be analyzed from the the function of an Intermediate Body (IB). In the case of agreements, these tasks were delegated perspective of knowledge integration, namely the involvement of different actors in preparing the to a single city, while in the case of associations, their secretariats were given the IB function. strategies and their implementation. The majority of FUAs decided to cooperate in a less complex form of agreement (14 out of 24). The remaining 10 are associations, chosen usually in FUAs with pre-existing and relatively Funding sources of the ITIs in Poland active cooperation structures before the ITI implementation. To see which FUAs opted for which A key aspect to consider for investment integration is linking various funds in order to allow form of collaboration, see Table 2. It is important to highlight that there are advantages and closer coordination of hard and soft interventions in a particular area. All Polish ITI strategies drawbacks of each form. On the one hand, associations ensure more independence and less bias include interventions funded from both the ERDF and ESF, which are built in multi-fund regional towards the interests of a single municipality’s interests. On the other, it adds an administrative Operational Programmes. In addition, many FUAs planned complementary CF investments burden to the new institution, while in an agreement many tasks are covered by the usual city funded from national Operational Programmes: OP Eastern Poland and OP Infrastructure and administration services. Environment. However, these investments are not officially part of the ITI budgets and Article 7 interventions. Historical context Overall, Poland has allocated relatively high sums for functional urban areas within ITIs, increasing In the majority of the FUAs of capital regions in Poland, intermunicipal cooperation existed the minimum 5% of ERDF to over 11%, and adding an amount of ESF funds to be invested before the ITI period. However, a majority of them were either unofficial or inactive (Krukowska & through the instrument. Considering that Poland is by far the biggest beneficiary of the Cohesion Lackowska, 2017, p. 279). Only the associations in Katowice and Poznań were performing joint Policy 2014-2020, the funds allocated through ITIs have a massive impact on local and regional initiatives, including EU-funded projects. This lack of intensive cooperation is often explained development. In total around 6 billion euros has been invested, where 3.11 billion euros comes by researchers due to the low social capital in Poland, and consequent lack of trust, low skills from ERDF, and 0.57 billion euros from ESF. This will be complimented with around 2.5 billion and will to cooperate (Kozak, 2016a). This might also be attributed to the lack of legal basis euros from domestic resources, including both own contribution of the local authorities, and and insufficient governmental incentives for intensifying cooperation. Therefore, the decision of complimentary national projects funded from the Cohesion Fund. Additionally, nearly 140 million the Ministry of Development to use the ITI instrument to enhance intermunicipal cooperation, euros is allocated to non-SUD ITIs located in six subregional urban functional areas. suggests that ITIs can be seen, in a way, as an experiment which shows that financial incentives and formal guidelines can improve longstanding partnerships, thus ensuring integrated and ESI funding available for particular FUAs equals on average 153 million euros, and there is a high efficient development of urban areas. variety between budgets from 40 to 739 million euros. Available funding differs from 61 to 542 euros per capita, and from 2.1 million euros to 19.4 million euros per municipality. Such variations Historically, integrated urban development in Poland has been relatively weak. Prior to the 2014- can be explained by the different amounts of allocations from particular ROPs invested through 2020 Programming Period, the only EU funds dedicated directly to cities in Poland were URBAN 22 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 23 TABLE 2. Legal form, size and budget of SUD ITIs in Poland SUD ITI ERDF ESF TOTAL per Number of Number of TOTAL ERDF + ESF TOTAL per capita Region Legal Form [million [million municipality Functional Urban Area municipalities inhabitants [million euros] [million euros] euros] euros] [million euros] 1 Dolnoslaskie Jelenia Gora Functional Area Agreement 18 209,108 87.0 26.4 113.4 542 6.3 2 Dolnoslaskie Walbrzych Agglomeration Agreement 22 415,800 152.4 41.3 193.6 466 8.8 3 Dolnoslaskie Wroclaw Functional Area Agreement 15 725,219 240.8 50.5 291.3 402 19.4 4 Kujawsko-Pomorskie Bydgoszcz-Torun Functional Area Agreement 24 853,000 143.3 23.5 166.8 196 6.9 5 Lodzkie Lodz Metropolitan Area Association 23 1,100,000 181.6 30.6 212.2 193 9.2 6 Lubelskie Lublin Metropolitan Area Agreement 16 547,784 93.3 12.1 105.4 192 6.6 7 Lubuskie Gorzow Wielkopolski Functional Area Agreement 5 153,300 42.5 6.8 49.3 321 9.9 8 Lubuskie Zielona Gora Functional Area Agreement 6 185,209 46.9 11.5 58.3 315 9.7 9 Malopolskie Cracow Functional Area Association 14 1,030,000 202.1 34.0 236.1 229 16.9 10 Mazowieckie Warsaw Functional Area Agreement 40 2,700,000 142.1 23.7 165.8 61 4.1 11 Opolskie Opole Agglomeration Association 21 334,000 56.9 14.5 71.4 214 3.4 12 Podkarpackie Rzeszow Functional Area Agreement 13 359,336 65.5 7.3 72.8 203 5.6 13 Podlaskie Bialystok Functional Area Association 9 415,531 67.2 8.8 76.0 183 8.4 14 Pomorskie Gdansk-Gdynia-Sopot Metropolitan Area Association 30 1,270,000 193.4 65.8 259.3 204 8.6 15 Slaskie Central Subregion Association 73 2,759,961 639.1 100.0 739.1 268 10.1 16 Slaskie Northern Subregion Agreement 34 527,575 95.9 11.2 107.1 203 3.2 17 Slaskie Southern Subregion Agreement 38 665,269 92.9 12.2 105.1 158 2.8 18 Slaskie Western Subregion Association 24 637,712 92.9 12.5 105.4 165 4.4 19 Swietokrzyskie Kielce Functional Area Agreement 12 340,317 68.6 13.8 82.4 242 6.9 20 Warminsko-Mazurskie Olsztyn Functional Area Agreement 7 230,000 42.1 16.5 58.6 255 8.4 21 Wielkopolskie Kalisz-Ostrow Wielkopolski Agglomeration Association 24 358,012 61.3 7.8 69.1 193 2.9 22 Wielkopolskie Poznan Functional Area Association 22 1,014,194 174.4 22.2 196.6 194 8.9 23 Zachodniopomorskie Koszalin-Kolobrzeg-Bialograd Functional Area Agreement 19 298,740 34.0 6.0 40.0 134 2.1 24 Zachodniopomorskie Szczecin Metropolitan Area Association 13 687,247 97.9 11.2 109.1 159 8.4 TOTAL 522 17,817,314 3113.9 570.2 3684.1 207 7.1 Source: Own elaboration on the basis of Ferry, Borkowska-Waszak 2018 24 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 25 the ITI instrument. Another issue regarding integration of investments is the use of various kinds of FIGURE 9. financial aid (grants, financial instruments, private funding), in order to ensure higher sustainability Detailed thematic objectives of Cohesion Policy: Percentage of Polish ITI strategies. N=22 strategies of investments. Here, the only type of available funding for SUD and non-SUD ITIs is non-repayable grants. Financial instruments and repayable grants are used in some ITIs is in Poland. Thematic scope of ITIs in Poland One of the most visible aspects of investments integration in Poland is using various thematic objectives (TO), in order to differentiate the kind of investments in a particular area and to allow a synergy effect. Thematic objectives realized in the Polish ITI strategies are quite diverse. All ITIs planned investments within the TO 4. Supporting the shift towards a low-carbon economy. Source: Ferry, Borkowska-Waszak 2018. It is also the most popular objective among all member states in relation to SUD investments Note: Annex 1 includes a description of the thematic areas. (Van der Zwet et al., 2017). Its various subpriorities constitute 22% of all priorities of the ITI strategies (on average there are 3.2 subpriorities of this objective per strategy). Besides TO 4, Other aspects worth considering in the context of thematic integration of investments are the most frequently chosen investment priorities are: TO 10. Investing in education, training and urban-rural linkages and coordinating particular projects in order to achieve scale effects and lifelong learning (16%, 2.3 priorities per strategy), and TO 3. Enhancing the competitiveness of functional complementarity and avoid fragmentation and duplication. The first aspect was SMEs (13%, 1.9 priorities per strategy). These latter objectives differ from those chosen by other rarely mentioned explicitly in the ITI strategies as an aim or area of intervention, disregarding member states, which more often opted for TO 6. Environment & resource efficiency, and TO typical agglomeration challenges such as urban sprawl. 9. Social inclusion. The summary of all general priorities targeted by Polish ITI strategies can be seen in Figure 8. The scope of project coordination differs between FUAs, and even within them as some investments are better coordinated and more complementary than others. Some FUAs FIGURE 8. specified complementarity as an official criterion for the purpose of project assessment, but General thematic objectives of Cohesion Policy: % of all priorities of the Polish ITI strategies. N=22 strategies the operationalization of this criterion had a geographical character. This meant that a project located in a municipality belonging to the FUA was complementary with any other investment in the same FUA. A more functional coordination (e.g. a bicycle path from a village to the city through another municipality, or the strategic distribution of vocational schools or kindergartens) happened in a more informal sphere. It was based mostly on casual communication between mayors and city officials who saw a need for coherent investments. In a few cases, such communication helped avoid the duplication of investments (e.g. building transport hubs on both sides of the border between two municipalities). The aspect of functional coordination of particular investments should be given more attention and prominence in the future. Knowledge integration One of the aims of the “place-based approach” was to use the knowledge of local actors in programming and implementation of sustainable urban development. In assessing knowledge Source: Ferry, Borkowska-Waszak 2018 integration in these ITI, it is important to highlight the participating local actors, the stage at which they participated and the extent of their influence. In Poland, the main local actors In total, there are 39 sub-priorities, or thematic areas (see Figure 9) financed under Polish ITIs, included in the process were mayors, employees of the newly created local ITI IB and municipal ITI among which the most popular are 4e, 4c, 10i, 10iv and 3a. On average an ITI strategy covers coordinators, who were appointed among local administration to contribute towards ITI projects. 12 investment priorities (maximum 23 in the Wroclaw area, minimum seven in the Warsaw area). It is striking to note that none of the ITIs in Poland is investing in TO 11. Improving the efficiency of public administration, and only three out of the 22 analyzed strategies invest in TO Mayors 1. Strengthening research, technological development and innovation. However, it does not have In Poland, local actors played a role in forming ITI system even before the formal establishment to mean that targeted urban functional areas do not invest at all in public administration and of the instrument. They actively lobbied during delimitation of the FUAs and decided on available innovativeness from EU funds. ITI Intermediary Bodies were mostly funded from the national legal forms of collaboration. Here, the biggest role was played by mayors who actively lobbied for OP Technical Assistance, and local authorities could apply to other sources of EU funding, for preferred solutions. Another aspect was the official formation of associations and agreements example the national OP Innovative Economy. However, these areas were not included in any for the purpose of ITI implementation, which had to be approved by mayors of each municipality. Polish ITI strategies. At the stage of ITI strategy preparations, mayors actively participated in discussing strategic 26 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 27 objectives and non-competitive projects, crucial for the effective realization of the strategy. The the key players in the implementation process. The only exception is the ITI implemented in strategy was approved by the respective ITI Board or ITI Assembly (depending on the legal form), the Walbrzych FUA in the Dolnoslaskie region, in which local authorities successfully negotiated which shows an additional role of mayors. Mayors also played a crucial role in coming up with full responsibility for the IB. In all regions, MAs were reluctant to delegating too many tasks, projects funded from the ITI and coordinating investments planned in neighboring municipalities. because local authorities did not have any experience with managing EU funds apart from the beneficiaries’ perspective. This created the risk of delays and errors during implementation. That Local administrations: ITI Intermediary Body and municipal ITI coordinators is why the initial scope of tasks delegated to the IBs was quite limited and will be described in more detail below. Local administrations also started the preparations of joint strategies even before the 2014- 2020 period, by conducting diagnosis regarding the assets and challenges of their territory and It is important to highlight that during the implementation process, local IBs improved their preparing partnership projects. The crucial role was played by civil servants in all partnering administrative capacity (Ferry, Borkowska-Waszak 2018), managing processes related to municipalities, who were actively involved in data collection and participating in meetings on animation of intermunicipal collaboration, and spreading metropolitan perspective to investment joint projects. Similar to other member states, in Poland local actors had the biggest influence planning, project coordination and avoiding fragmentation of investments, and monitoring the at the stage of strategy preparation. The key role was played by the newly created local ITI implementation processes. Some IBs negotiated extending the scope of tasks delegated from IB, which was formally responsible for the strategy preparation, and coordinated collaboration MA (see the case studies section). Here, the typical governance arrangements between MA and processes among all the partnering municipalities. Thus, strategy preparation appears as one IB will be presented. of the key moments in which local actors’ knowledge was used to improve the quality of the ITI strategy. They also had a major role in preparing the ITI projects, as municipalities are by far Strategy design biggest (sometimes the only) beneficiaries of ITI funds. ITI IBs played a crucial role in informally coordinating planned investments with each other to achieve a level of synergy among them. All 24 SUD ITI IBs were responsible for preparing strategies of FUA development in the context They also performed tasks necessary for project appraisal and monitoring ITI implementation. of ITI implementation. This consisted of: However, their role in evaluation has not been specified. • Conducting diagnosis of the FUA’s socio-economic situation; • Ordering additional expertise (universities, think tanks, consultancies); Municipal councilors, local stakeholders and citizens • Facilitating the process of defining key needs and challenges, strategic objectives for the Officially, strategy preparation involved a social consultation process, in which local stakeholders FUA and – in most cases – ITI projects crucial for implementing the strategy (decided by and citizens could participate. Most Polish ITI strategies claim that they organized online the mayors of all municipalities); and consultations and occasional open meetings, but they did not specify to what extent the collected • Organizing social consultations. opinions influenced the final strategy. Furthermore, local councilors’ participation in this process was very limited. They officially approved the collaboration agreement, ITI strategy and each The strategy had to be approved by all municipal councils and mayors, and then accepted by the municipal investment to be funded within ITI, as they always included partial funding from the regional MA and relevant ministry. municipal budget This enabled them to have a veto power and a controlling function in planning ITI investments. Access to ITI funding and implementation by local stakeholders was limited. In Implementation many regions it was only open to them in terms of ESF project calls. They were also not involved The FUA of Walbrzych is the only ITI implemented in Poland with full responsibility of project in monitoring and evaluation of ITI implementation, contrary to some other member states which selection, assessment and financial management. It receives extra funding from the Technical involved local stakeholders to a much higher extent. Assistance of the ROP, which allows them to hire 50 employees. All other IBs have funding from the national Technical Assistance OP, which allows hiring 10 employees, and their tasks in each Institutional Framework of the three above mentioned aspects of implementation varies. Polish ITIs are placed in all 16 regional Operational Programmes. Local Intermediate Bodies (IBs) All Polish IBs are involved in project selection. They ensure transparent information exchange and were created for all 24 SUD ITIs. The organizations awarded the IB role differed depending on facilitate the discussion among mayors on crucial ITI projects. Most FUAs could preselect non- the legal form of collaboration in FUAs. In case of intermunicipal associations, the IB tasks were competitive projects funded from ERDF. This involved a process of negotiations and bargaining performed by their secretariats, while in every intermunicipal agreement one municipality was among local authorities. In this process, IBs moderated the discussion and tried to coordinate selected as FUA leader, which created an ITI-dedicated office within its administrative structures. projects with each other, while MAs ensured coherence with European and national guidelines. Such local institutions involved in EU funds management had never been created before in The competitive mode was used in most regions for ESF project selection, and in a few cases also Poland. for ERDF projects (e.g. FUAs in the Slaskie region). Additionally, IBs suggest project assessment criteria related to the coherence with ITI strategy. Their preparation was initially problematic Regional managing authorities (MAs) delegated tasks to all ITI IBs in formal contracts. The scope of as nobody knew how such criteria should look like, and mostly focused on the coherence of a tasks and rule for MA-IB collaboration differs among regions, as they were negotiated individually, project with ITI strategy objectives, complementarity with other projects realized in FUA, and and national guidelines allowed flexibility in this regard. In general, managing authorities remained contribution towards key indicators that each ITI should deliver. 28 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 29 The majority of FUAs share responsibilities regarding project assessment between IBs and MAs. Conclusion MAs conduct the initial formal assessment, and the main quality assessment. When all necessary In general, the added value of ITIs is clear across the following dimensions: criteria are passed, IBs assess the projects’ compliance with the ITI strategy. This is conducted either by IB’s employees or independent experts. Although in theory IB’s influence on project • As an implementation tool it is first of a kind in bringing substantial EU funding to selection is limited, in practice projects are typically preselected and the assessment is rather a FUAs, and it brings a novelty in both an instrument focusing specifically on cities and quality-check rather than actual selection, so IBs’ informal role is in fact broader. stimulating territorial coordination of EU-funded investments. • As an organizational instrument, ITIs provide external incentives and framework for Apart from the Walbrzych case, MAs kept the accountability for financial management, with a intermunicipal partnerships in Polish FUAs. Before ITIs were introduced through EC focus on the following key activities: financing, few FUA municipalities were incentivized to establish collaboration frameworks, • Fund distribution among the investment priorities available for ITI, and in those cases where they were established, they had limited activity. Currently there are 10 functioning association and 14 agreements and ITIs have had a direct role in the • Manage project calls and decide on the amounts available in each of them, formalization and activation of intermunicipal cooperation within Polish FUAs. • Sign project contracts with beneficiaries, • The ITI instrument stimulated joint strategy preparation. As a planning instrument, • Certify expenses to be reimbursed. the ITI enabled more municipalities to elaborate a strategy inclusive of areas beyond their boundaries. The quality of ITI strategies differs and there is definitely a scope for IBs usually play an advisory role in these processes, representing the needs of local improvements in terms of integrated approach to local development, but undoubtedly authorities. They negotiate the availability of investment priorities, suggest the schedule ITI motivated neighboring municipalities to discuss their problems and try to coordinate and amounts accessible in particular project calls, and lobby for prioritizing ITI project in their investments. various procedural stages. • As an engagement instrument, the ITI enabled more urban authorities’ scope for informal and formal influence in relation to EU funding allocation and project selection. This was Monitoring and evaluation due to the dominance of the non-competitive mode of ITI project selection, and newly All Polish ITI IBs are responsible for monitoring of ITI implementation. Monitoring was interpreted created ITI IBs actively participating in project preselection, project criteria elaboration, and performed in various ways, e.g.: and project assessment. • Gathering data on funds absorption; • ITI IBs are responsible for monitoring of ITI implementation, which is a new task • Coordinating projects preparation and realization; connected to EU funds at the urban level. • Spreading information among municipalities and the MA; and • As a capacity building and sharing platform, there is a crucial added value of ITI for building skills, rules, and habits of the intermunicipal collaboration in Polish FUAs. IBs play • Monitoring visits to assess the progress in project realization. an important role of partnership brokers: animating collaboration, delivering information and training, mitigating conflicts, and organizing regular meetings at the political and ITI evaluation in all regions is embedded in the ROP evaluation system and conducted fully operational level among FUA partners as well as between local and regional authorities. by the MAs. It consists of assessing the progress in funds absorption, achieving particular indicators related to thematic objectives, as well as thematic evaluations on chosen aspects of • As ITI are implemented in all Polish regions, they stimulated creation of new cross- ITI implementation. regional networks of IBs and FUAs. A few FUAs additionally joined international networks to exchange experiences of SUD instruments with other countries. TABLE 3. • All the above aspects contribute to ITI’s substantial role in administrative capacity Scope of task delegation to local authorities during ITI implementation building at the local level. Not only were new local institutions created, but they were also delegated new important responsibilities regarding EU funds’ management, and Policy implementation stage Responsible institution they proved to play a significant role in managing integrated local development and intermunicipal collaboration. Design Led by urban IB, approved by MA and national government Project selection Shared among MA and urban IB Still, there are some limitations about the extent to which ITIs bring change regarding previous periods of EU Cohesion Policy implementation in Poland. IBs got involved in almost all stages of Financial management Led by MA, urban IB’s informal influence ITI implementation, but the main accountability and decision-making power was retained by MAs. Monitoring Urban IB, reporting to MA Regional authorities approved ITI strategies and FUA collaboration statutes, elaborated the majority of project selection criteria, conducted the majority of project assessments, kept the financial Evaluation MA management responsibilities and prepared the ITI evaluation system. Moreover, the change towards Source: van der Zwet, Mendez, Borkowska-Waszak, (planned for 2019) integrated approach to local development has started, but there is still a lot to improve. 30 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 31 The share of ITI projects realized in partnership is insufficient (Janas & Jarczewski, 2017, pp. Each case study will be analyzed in terms of the following aspects: 70-71), although even formal partnerships cannot guarantee full territorial integration. Also, Local context: capture the elements shaping intermunicipal collaboration in each FUA; the character of a majority of planned individual projects seems to be rather fragmented, and Scope of collaboration: characterize the joint actions that partners agreed on; the potential of influencing neighboring municipalities in many cases is limited. Joint integrated initiatives, expertise studies or projects initiated by the ITI IBs are still notable exceptions and Institutional mechanisms: established in each FUA to capture the key issues that play a role of recent good practices promoted by the national government among the rest of needed to be agreed on to ensure ITI implementation; and FUAs. This can be explained by late elaboration of ITI implementation guidelines at the EU level Future prospects: assess the likelihood of prolonging collaboration among partners after and numerous changes in associated national guidelines, which resulted in the preparation of ITI the termination of dedicated ITI funding. strategies and projects in a rush, and in the context of ambiguity of rules and definitions. Another issue is the ambition of local political leaders, who tried to use the higher influence on CASE STUDY 1: ITI funds allocation for individual gains, which can result in short-term, non-strategic projects. Central Subregion of the Slaskie Voivodship Moreover, pressure on funds’ absorption speed, exerted by the European Commission, national government and MA, has a direct influence on the behavior of local actors, who are incentivized Local context to prioritize simple and fast, rather than complex and quality projects. Thus, project partnership The Central Subregion of the Slaskie Voivodship is the biggest FUA targeted by ITI instruments in and integrated character raise the risk of untimely implementation, as they prolong the project the EU. It is one of the two biggest metropolitan areas in Poland with nearly 2.7 million citizens. preparation processes due to the higher number of actors and increased scope of intervention. It is a polycentric area, including 15 cities with around 100-250 thousand inhabitants each, and The pressure on absorption is characteristic of the EU funds management system. If ITI are 58 surrounding municipalities. The number of municipalities matters in terms of the negotiation expected to raise the quality and integration of EU investments, tackle complex challenges across and bargaining processes within ITI implementation, as the more actors are involved, potentially jurisdictions, some of these rules will need to be reconsidered. the more difficult it is to achieve consensus, and the more partners there are to divide the ITI funding amongst. Polish Case studies FIGURE 10. The next section characterizes the mechanisms used for ITI implementation in two Polish Map of the Central Subregion of the Slaskie Voivodship Functional Urban Areas: The Central Subregion of the Slaskie Voivodship and the Lublin Functional Area. They were selected after consideration of their legal form, size, population, budget, and project selection mode. Key data on these two FUAs are provided below. TABLE 4. Key data on Polish case studies The Central Subregion The Lublin CASE STUDY of the Slaskie Voivodship Functional Area Legal form Association Agreement The core ITI city Katowice/Gliwice1 Lublin Number of local government units 81 16 Number of inhabitants 2.76 million 0.55 million ITI budget 739.1 million euros 105.4 million euros ITI budget per capita 286 euros 192 euros Source: The ITI strategy of the Central Subreg ITI budget per local government unit 9.12 million euros 6.6 million euros The polycentric character shapes intermunicipal collaboration, as there is not a single dominant municipality, and a higher interdependence among jurisdictions. Instead, there are multiple Project selection mode Competitive Preselection partners with similar challenges, potential and ambitions. On the one hand, this homogeneity allows mutual understanding of each other’s problems and interests and provides a base Source: Own elaboration on the basis of ITI strategies for partnership approach. On the other, similar ambitions stimulate competition among the municipalities, which could discourage them from exchanging information on their investment 1 The official regional capital is Katowice, while the headquarter of the ITI association is Gliwice. plans and supporting each other’s development. 32 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 33 In this context, it has to be highlighted that the Central Subregion is characterized by a strong the lack of experience in managing EU funds by local authorities. Before the ITI, they only applied regional identity. This is exceptional in Poland, as in other regions citizens tend to identify for funds in the role of beneficiaries, while for ITI implementation they were supposed to perform themselves with particular municipalities and then the nation as a whole. The Silesian identity is tasks of an Intermediate Body. This influenced the decision to delegate only a limited scope based on historical background, as for a long time this area was either ruled by German authorities of tasks to the local level, similarly to other FUAs in Poland. However, the scope of tasks was or was autonomous. Even nowadays there is a political party, Autonomous Silesia Movement, increased over time (see next section), which shows growing capacity of the IB and trust in local- gaining seats in regional and national parliaments. The citizens feel culturally distinct from the regional relations. rest of the country, creating a sense of unity. This was also true for the mayors partnering in the ITI, who often talked about the development dividends for the whole metropolitan region, not only The second aspect of multilevel relations is that the Silesian region is highly urbanized, and their municipality. However, a small part of the functional area historically belonged to the part majority of citizens live in the Central Subregion. This was one of the reasons why regional of Poland occupied by Russia and developed a different culture and identity. These historical- authorities had an interest in investing substantial amounts in sustainable urban development geographical contexts created tensions between the mayors representing municipalities in the and divided the whole region between four subregions, each targeted by an ITI instrument. two parts of the Central Subregion and influenced negotiations of the collaboration agreement Additionally, they invested especially in the Central Subregion by adding resources from the for ITI implementation. Silesian ROP and raising the ITI funding above the 5% minimum. This influenced intermunicipal collaboration, as the increased resources available through ITI raised the benefits from The distance between some of the municipalities of the FUA exceeds 100 km. The size of participating in the collaboration, while also raising political interest in this instrument. The ITI the area influences intermunicipal collaboration, because proximity usually determines more partners acknowledged that Silesia never had such a development chance as through the ITI interdependence among jurisdictions. This could undermine the will to collaborate among distant instrument. This strongly motivated mayors to collaborate and provided an important collective municipalities, but the polycentric character and varied directions of everyday mobility of interest. The substantial resources also diminished tensions among partners, as there was a inhabitants served to reinforce the need to collaborate, even at such a large area. feeling that there will be enough investments for everyone. One of the biggest tension points influencing collaboration, especially in the beginning, was Another factor influencing ITI implementation in the Central Subregion was the earlier experience between the capital city and the other municipalities. Other mayors did not trust the capital city in interjurisdictional collaboration. All Silesian municipalities belong to the Association of Silesian to be fair in ITI resources distribution and wanted to ensure that their interests would be covered Authorities, and the ITI Board President is also the head of the Association of Polish Cities. by the collaboration agreement. The mechanisms ensuring fair power and resources distribution Moreover, in the 2007-2013 Programming Period, the majority of municipalities participated in will be described in the next section. a pilot project dedicating an amount of money to a number of municipalities, who agreed on preselected projects. All these experiences allowed political and administrative representatives Other potential tensions among mayors influencing collaborations could have a politically of the municipalities to get to know each other and test collaborating mechanisms (some more partisan character. However, according to local actors, partisan affiliations of mayors mattered successful than others). In this way, collaboration around ITI implementation was based on a only for the power distribution in the ITI Board, including 15 out of 73 municipalities (for more relative trust among municipalities. details, see the next section). Later, during resource distribution, ITI strategy preparation and actual ITI implementation, partisan factors seem to have had a marginal influence. The division between mayors was based more about efficiency in EU funds absorption (municipalities timely Scope of ITI collaboration using all allocated funds vs. those experiencing problems with administrative capacity or for The literature on collective action usually distinguishes 4 major types of intermunicipal other reasons not preparing planned projects). collaboration: One of the success factors is attributable to the character and personalities of the lead individuals. Coordination: focusing on exchanging information about each other’s activities, and In the Central Subregion, both the president of the ITI board and the director of the ITI secretariat trying to adjust to mutual plans in order to achieve functional or physical complementarity; of the association displayed the requisite leadership characteristics. The president of the ITI board played a central role in shaping intermunicipal collaboration in the Central Subregion. He Scale effects: allowing to save costs of delivering similar services; was actively involved in building trust among mayors, overcoming prejudices against the capital Common pool resources: sharing the responsibility to manage resources to which city, and creating collaborative mechanisms that were perceived as fair and including interests of multiple jurisdictions have access, (e.g. a river, air, lake, park, forest etc.); and all municipalities. His personal experience in intermunicipal collaboration and his esteem among other mayors were crucial in the success of collaborative processes in the Central Subregion. Internalizing externalities: focusing on minimizing the negative effects of actions by Similarly, the director of the Secretariat of the Association was key in brokering partnerships one municipality on the others (e.g. pollution) or sharing the benefits of positive actions. among civil servants involved in ITI implementation and ensuring project coordination. In the Central Subregion, the majority of ITI activities focused on coordination. This was managed As ITIs in Poland are embedded in regional Operational Programmes, the relations between local by the ITI office, which played an important role in facilitating information exchange among and regional authorities mattered. First, the Managing Authority of the ROP had limited trust municipalities, organizing meetings on particular topics at political and administrative level, towards the administrative capacity of the newly created association of municipalities due to and linking partners planning similar investments. The projects were rarely prepared in formal 34 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 35 partnerships, but coordination was stimulated in an informal way. For example, municipalities ITI Board formed by 15 mayors, including three representatives of each of the five sub- coordinated their investments in vocational schools by agreeing on the geographical distribution regions; of their specializations. The idea was to equip nearby schools with different facilities, diversity ITI Board President, usually called “ITI leader” the offer of vocational schooling in the metropolitan region and avoid duplication of investments ITI Revision Council formed by key institutions located in the Central Subregion; and in schools located nearby each other. ITI local coordinators in all 15 municipalities belonging to the ITI Board. Another example is coordination of investments in kindergartens after a joint analysis of the functional area in terms of the number of missing places for children in particular municipalities. FIGURE 11. Jurisdictions acknowledged each other’s needs, observed that sometimes families living near the Division of the Central Subregion into five sub-regions The composition of these bodies shows the border of a municipality can use facilities of the neighboring jurisdiction, and decided to apply for agreed power distribution among partners. investments in the localities with the lowest access to kindergartens. The role of ITI board president was given to the mayor of Gliwice, one of the 15 big The last example is related to the urban regeneration of post-mining and post-industrial constituting the ITI. This ensured that housing areas. In the Central Subregion, these territories are often located on the border of two the capital city would not dominate the municipalities and investing only in one part would produce an incoherent effect. Therefore, within association. The Board meets once every the ITI instrument, jurisdictions coordinated their investments in regeneration of the areas. month to agree on ongoing issues related to ITI implementation. At the same There are also examples of scale effects achieved by a few initiatives of joint public procurement, time, the regional capital Katowice was e.g. ordering documentation of bicycle paths in multiple neighboring municipalities by one appointed as a chair of the ITI Assembly in contractor. This allowed both saving the individual cost of documentation preparation, but also order to provide it with an important role ensured coherent plans of cycling paths beyond administrative borders, allowing citizens to in the association. The assembly meets commute between municipalities. at least once a year to accept the annual There were no activities within ITI implementation covering common pool resources nor report on the association’s performance, internalizing externalities. and jointly decide on other crucial issues requiring the vote of all municipalities. The However, municipalities from the Central Subregion got involved in joint activities beyond ITI secretariat employs inhabitants of various funding. As an association, they jointly applied for external EU projects, and ordered a joint municipalities in order to mitigate against transport diagnosis of the whole area. The latter is one of the biggest investments in a metropolitan dominance of one city’s interests in joint Source: Website of the Central Subregion approach to transport planning, as it measures the daily mobility of inhabitants, both by public administration. and private transport. This is particularly important due to the polycentric character of the area, as inhabitants commute in various directions, thus requiring an integrated transportation The secretariat performs tasks delegated to the ITI Intermediate Body, ongoing coordination of system. The study was partially funded by the national government, but all municipalities agreed projects among municipalities, organizing meetings and trainings for them, and collaborating to contribute with their own resources to co-finance this joint project. with higher-level institutions in order to ensure efficient ITI implementation. The division into five subregions was a solution to the challenges related to the huge size of the area and the Institutional mechanisms established for ITI implementation large number of municipalities. Subregions organize their own meetings including mayors of all the municipalities at least every three months, and then the three delegates are expected to The first mechanism that needed to be established was the legal form of collaborations. Mayors represent the interests and agreements on the ITI Board. In this way the division of power has decided to create a new intermunicipal association for the purpose of ITI implementation. The geographical relevance. The ITI local coordinators are civil servants responsible for preparing membership in the association was voluntary and the council of each municipality had to officially ITI projects in their municipalities, but also coordination of projects in each sub-region. They express the will to join, and each mayor had to sign the collaboration agreement. This document meet at least every three months to discuss operational and administrative issues related to ITI included the aims and rules of collaboration, defined membership fees, and specified the main implementation. bodies responsible for the joint actions, such as: Secretariat, including 10 employees: In terms of the scope of delegated powers and functions to the Intermediate Body, the Central ITI Assembly formed by all municipalities and counties (powiats): Subregion followed the typical division described in the chapter on the Polish ITI system. There are two major distinctions, which were introduced after a certain period of implementation, and Formal division of the area into five parts called “sub-regions”, following the official NUTS3 depended on the bottom-up initiative of the ITI Secretariat willing to take up more tasks. The boundaries (mainly based on the number of inhabitants, rather than a number of municipalities, first is to conduct a merit-based assessment of ITI projects, which was previously undertaken see Figure 11): exclusively by the MA. The second is an extensive monitoring of ITI implementation, for which the 36 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 37 Secretariat created a dedicated online platform for information sharing among municipalities, in Poland and was created by majority of municipalities belonging to the Central Subregion. The and on-going data collection on the progress in ITI funds’ absorption. Additionally, they prepare metropolis was created after a long process of lobbying the national government and demonstrated annual reports on ITI funds absorption and attendance of ITI related training by representatives the will of municipalities to address problems that go beyond their administrative boundaries. of each municipality. This enhances the knowledge on mutual progress in investments and The benefits from collaboration, according to municipal representatives, was that the direct strengthens the interrelation between administrative capacity building and performance in incentive to start collaboration was the possibility to have dedicated EU funds. As the ITI funds absorption of EU funds. money were reserved for the FUA, less municipalities were eligible to apply. Consequently, the Other mechanisms that had to be agreed on are: competition over funds was smaller and the chance to acquire them was higher. Moreover, the initial plans included the possibility of project preselection, which is similar to a guarantee of • ITI-specific project selection criteria; financing for agreed investments. However, according to many municipal representatives, funding • project selection mode (competitive, non-competitive); and was not the only benefit. Some acknowledged the interdependence between municipalities and • the form of projects (individual vs. linked by a formal partnership). the possibility that the development of an adjoining municipality would have positive region-wide spillover effects. This aspect was especially highlighted by the ITI leader, who actively propagated The specific project selection criteria were created in addition to the formal and merit-based this approach among other mayors. As for the benefits observed during ITI implementation, criteria taken into consideration during project appraisal. Each project has to fulfill at least 50% local actors admitted mutual learning and inspiration on both strategic and operational levels, of these criteria to ensure that it goes along the ITI strategy. These criteria are assessed by as well as strengthening their collective voice when negotiating some issues with higher level employees of the secretariat (when funded from ESF), or independent experts employed by the organizations as an Association. Many municipal representatives said that they also got to know secretariat (when related to ERDF). each other and became more collegial. The project selection mode was a controversial issue in the Central Subregion, as the association Municipalities already engage in joint activities not funded from ITI, such as the transport study preferred the non-competitive mode, used in majority of Polish FUAs implementing ITI related to described earlier in this chapter, which is partially financed by municipal fees. They also prepared ERDF. However, the European Commission did not agree to this mode due to substantial resources post-2020 analysis of potential scope of collaboration. These aspects show that municipalities dedicated to the Central Subregion, and consequently, all ITI resources are distributed within see benefits in collaboration even without ITI funding, although the fiscal instrument definitely competitive project calls. This opened access of private and Non-governmental organizations boosts the possibilities of joint actions and investments and provides structure and incentives to meet regularly at both political and operational levels. This, in turn, builds trust and strengthens to ITI funds usually reserved for municipalities. As an answer to this situation, the Association future prospects of collaboration. created a mechanism for incentivizing external entities to inform the Association about their plans of project application and gave extra points to those projects which they supported, as these were more aligned to the ITI strategy. Although the mode of project selection was competitive, municipalities were still cognizant of the need for joint strategy and coordinated CASE STUDY 2: investments. Therefore, they created an informal system to exchange information about planned The Lublin Functional Area investments, which limited duplication of projects and competition over EU funds. When partners jointly agreed that investments were needed in smaller municipalities, the bigger cities did not Local context apply for projects in this particular project call. In this way all municipalities gained a chance in The Lublin Functional Area (LFA) is characterized by similar features to an average ITI in Poland. absorbing EU funds, while previously smaller jurisdictions, with lower administrative and financial It includes 16 municipalities (see figure below), covers a population of over 500 thousand people, capacity often lost in open competition against bigger cities. and disposes a budget of over 100 million Euros. It is a monocentric area focused around the capital city of Lublin, providing home for around 67% of LFA’s inhabitants. Each of the remaining Last, the Central Subregion opted for an informal coordination of individual projects, as opposed to 15 municipalities represent from around 1% to 8% of the population. The dominance of a single projects bound in a formal partnership. This was done mostly because of formal interdependence partner strongly shapes the collaboration, as the capital has much higher resources, capacity, of municipal investments and different project readiness stages, which in their assessment could potential, ambitions and challenges from the other municipalities. They are clearly dependent slow down funds’ absorption. This created the risk for opportunistic behavior as a municipality on the city, in which many inhabitants of the outskirts work, attend education and use many may apply for a different project than agreed. Therefore, additional informal mechanisms were services. This creates an uneven relation, in which the city can dictate the rules. As an effect, the created to prevent defection, and they were mostly based on an informal mutual peer pressure beginning of collaboration was hard due to the limited trust towards Lublin among municipalities, by mayors. which were afraid of an unfair division of resources. Another important aspect is the relative homogeneity of the 15 municipalities, which on the one Future prospects hand stimulates competition, but on the other mitigates collaboration through similar interests. In the Central Subregion, the continuation of collaboration among municipalities was perceived as Common challenges are strengthened by proximity, as limited physical distance between obvious and necessary. The successful ongoing implementation of the ITI was attributed, in part, municipalities raises the number of common issues and challenges. Additionally, the relatively to this as well as the recent legal proclamation of a new administrative unit – the Gornoslasko- small number of municipalities belonging to the FUA potentially makes it easier to achieve Zaglebiowska Metropolis. The unit provided the only official authority at the metropolitan level consensus than in bigger areas. 38 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 39 An important aspect is also a weak economic situation of the FUA, as it influences administrative ministerial disposition of including ITI IB in monitoring project implementation. Moreover, an capacity and investment possibilities. Due to historic reasons, the eastern regions of Poland are important factor for shaping ITI collaboration in Lubelskie was the rural character of the region. among the poorest parts of the country. The majority of inhabitants live in villages and smaller towns, so regional authorities did not want to invest more than the required 5% of ERDF and nationally-demanded ESF to the FIGURE 12. LFA. This influenced the size of the ITI budget, which is much smaller than in Silesia, not only Map of the Lublin Functional Area nominally, but also per capita and per municipality. The size of budget influenced the perceived importance of the instrument. For smaller municipalities, ITI provided an attractive source of investments, while for the city it was one of many important funding opportunities (e.g. next to Operational Programme Eastern Poland). In general, the funds were perceived as insufficient, so the competition over them among municipalities could be assessed as higher than in Silesia. In the context of limited trust of municipalities towards the capital, and the clear disproportion of capacities, the role of the mayor of Lublin as an ITI leader was crucial. His attitude towards collaboration directly influenced the scope and depth of joint activities, the perceived importance of ITI meetings, and trust building among partners. This attitude was generally positive but limited because of legal limitations to establish collaboration in a few of the most important areas, e.g. spatial planning. Indeed, in Poland there is no legal background for legally binding spatial plans at the agglomeration level. However, some FUAs in Poland jointly prepared such Source: The ITI strategy of the Lublin Functional Area plans for their territories, and informally follow them for their municipal spatial planning. In this context, the director of the ITI office was perceived as a partnership broker, making sure that Although Lublin developed relatively dynamically, the surrounding municipalities have very limited collaboration between mayors and civil servants representing all municipalities goes smoothly revenues, lack basic infrastructure (e.g. sewage systems), and dispose a minimal investment and effectively. budget. The local public administration employs few civil servants (in the smallest municipalities in total around 20 people), often including only one person responsible for preparing all the Last, the municipalities belonging to the Lublin Functional Area (LFA) had relatively little experience EU projects. With limited human resources, the usual chance of acquiring EU funds by small in earlier interjurisdictional collaboration. Lublin mostly focuses on collaboration with cities and municipalities located in FUA is very low. They do not prepare many applications and it is hard towns located outside LFA, mostly international or based on thematic collaboration in a particular to ensure sufficient quality of those prepared, mostly because of the limited thematic expertise, economic sector. Individual municipalities formed bilateral agreements on a joint service delivery human resources and budget. Their administrative capacity is low and grows slowly due to little or collaborated with a few others in a joint EU project application. A few municipalities belonged experience in managing EU projects gathered over time. At the same time, the capital city has to other intermunicipal agreements focusing on tourism or other thematic areas. Building the a whole team working solely on preparing and implementing EU projects, as well as thematic foundation for ITI collaboration was an EU-funded project led by Lublin and partnered by most units employing experts in particular fields, helping to ensure the quality of planned investments. of LFA municipalities. It was performed in the end of the 2007-2013 period, and it aimed at Consequently, in a competitive call for EU funds, the city has a much higher chance of obtaining preparing a diagnosis of socio-economic situation of the whole area and collected data for the funding. In this context, intermunicipal collaboration has a huge potential benefit in terms of purpose of the final ITI strategy. The informal effects of the project included representatives mutual learning, coordinating investments among partners, and building administrative capacity of municipalities to get to know each other, build initial trust, and realize joint challenges and in the whole FUA. development opportunities. Thanks to this experience, ITI implementation did not start from scratch, but was a continuation of previous joint activities. Similar to Slaskie, the party affiliation of mayors seems not to have a major influence on the shape of collaboration. The clear clash dividing the partners was between the capital city and Scope of collaboration the remaining municipalities, but this has more complex reason than only the partisanship, as partially explained above. Party affiliation, however, seem to matter in the relations between the The activities within ITI implementation in Lubelskie will be analyzed following the four most local, regional, and national authorities, particularly between the Polish government, marshal of common types of collective action in the literature (coordination, scale effects, common pool Lubelskie voivodeship and the mayor of Lublin, which became apparent especially after the change resources, and internalizing externalities). of authorities following the national elections in 2016, and local and regional elections in 2018. In Lubelskie, a great majority of joint activities were focused on coordination. Projects in a The regional-local relations had a direct influence on the scope of delegated tasks from the similar thematic area, planned by various municipalities, were linked by a formal partnership. Managing Authority to the Intermediate Body of ITI. Regional authorities had a limited trust This included investments in revitalization, transport, broadband, and environment. The extent to towards the local level of administration due to lack of experience in managing the implementation which all projects were actually complementary is hard to assess, as often they were not planned of EU policies. Consequently, they decided to go with the minimum scope of their involvement together. Still, they went through the same procedure, and municipalities consulted each other in in the process of ITI implementation. This was later extended to monitoring visits, following the the project preparation process. There are two examples of a more concrete coordination: 40 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 41 Cycling paths passing through a few municipalities and creating a coherent investment. municipality had to express the will to enter the collaboration, in addition to the mayor’s This was achieved thanks to a local civil servant, who encouraged other municipalities signature. This document included the aims and rules of collaboration and specified the main to employ the same cycling paths designer with the indication that the paths should bodies responsible for joint actions: match and allow commuting between municipalities. This initiative allowed commuting ITI Council formed by all the mayors of partnering municipalities; from a town that does not have a border with Lublin, to a commute through two other ITI Council Chair, usually called ITI leader; municipalities to the city. However, it should be highlighted that there was not a joint project planning cycle paths in the whole area. ITI local coordinators in all 16 municipalities; ITI Office including 10 employees. A system of transport hubs, including one in Lublin (Integrated Communication Centre – later ICC), and 10 in the outskirts. It allows the inhabitants of smaller municipalities The shape of these bodies shows the agreed power distribution among partners. The number to commute to Lublin more efficiently, (e.g. leaving cars or bikes at a park & ride) of municipalities allowed a direct participation of all the mayors in the main decision-making body. The council meets at least twice a year to agree on the most important strategic issues and continue the journey by public transport. The ICC, with corresponding hubs, was connected to collaboration and ITI implementation. The voting system defines that to make a perceived as the most important investment of ITI in LFA. The decision of their location joint decision, a simple majority of municipalities have to be in favor of it, provided that one was to some extent coordinated by the Lublin’s Transport Authority and based on data, of them is Lublin. In other words, Lublin reserved a veto power and ensured that no decision but some of them came from the individual initiative of municipalities, as there wasn’t is taken without its approval. This rule was not contested by municipalities, which perceived any joint study indicating the most relevant locations. However, one example shows an the dominant position of the capital city as natural and fair. Consequently, the position of the efficient coordination of the hubs – two of them were planned right next to each other, ITI leader was assigned to the mayor of Lublin without a major debate. In practice, the deputy on two sides of the border between Lublin and Glusk. The municipalities communicated mayor of Lublin usually chaired the meetings of ITI Council in the absence of the mayor himself. and agreed that the hub will be located and funded by Lublin, but Glusk will build a Each municipality delegated one employee as an ITI coordinator, responsible for ITI project in this road leading to the hub from the municipal center. In this way, ITI mechanism allowed jurisdiction. The coordinators were given an extra payment to their normal salary, funded mostly avoiding duplication of similar investments next to each other. (85%) from the Technical Assistance project, the same from which the salaries of most ITI office employees came. The coordinators meet every month to discuss most pressing issues related to Scale effects were achieved by a few initiatives of joint public procurement and joint service delivery. the operational aspects of ITI implementation. The ITI office was created inside the structures A good example of both kinds of scale effects were visible in the partnership project e-municipalities, of the Lublin City Office, which means that all their employees were hired directly by Lublin. This establishing a broadband network in all of them. The municipalities prepared the project together, influenced the power relations among municipalities, as the ITI office was directly accountable designing the network for all of them. Later, they organized a joint public procurement procedure to to the mayor of Lublin, and therefore naturally were obliged to represent the interest of the choose a company that will deliver broadband services to all municipalities. Involved municipalities city rather than the whole LFA. This initially limited trust of the smaller municipalities towards assessed that both joint preparation of the project and joint service operator save costs for the ITI as an instrument, but on the other hand, they were happy to delegate the IB tasks to individual municipalities and ensured the same quality of the service. the city. The trust and representation of a broader interest were built over time by ITI Office employees, but the double accountability issue (formal towards Lublin, and functional towards all There were no activities within ITI implementation covering common pool resources nor municipalities), at times turned out problematic and created conflicts of interests. internalizing externalities. One municipality acknowledged a potential for joint project regarding a forest located on the border of two jurisdictions, and another talked about a tourism development In terms of the scope of task delegation to the Intermediate Body, Lubelskie also followed the plan around a river passing through a few municipalities in LFA. However, none of these ideas typical division described in the chapter on the Polish ITI system. Their main role was to build the were transferred into an ITI project. collaboration rules, lead preparations of the LFA ITI strategy, organize trainings and coordinate preparations of projects. They also organized meetings of all ITI bodies described above, and Beyond the formal partnerships around ERDF-funded projects, a few municipalities volunteered collaborated with the regional MA, other Polish ITI and national government on the current ITI to partner with a few others to jointly apply for ESF funding. This followed a competitive implementation rules, guidelines and plans. As the implementation advanced, the government procedure, and municipalities were not obliged to engage in intermunicipal collaboration in this required also taking a monitoring role by ITI IBs, and LFA will collaborate with MA for monitoring regard. The partnering process was then based on a successful collaboration, joint interests, and visits, in order to see the progress of particular investments at their actual location. acknowledging a real benefit from joining forces. Municipalities did not engage, however, in any project related to LFA development that would be funded from other sources than ITI or regional Similar to Slaskie, the remaining mechanisms that needed to be established are: Operational Programme in general. • ITI-specific project selection criteria; • Project selection mode (competitive, non-competitive); and Institutional mechanisms established for ITI implementation • Form of projects (individual vs. linked by a formal partnership). The form of collaboration was the first institutional mechanism that needed to be established. Mayors decided to go for the simpler option and sign an agreement of collaboration for the The specific project selection criteria were created in addition to the formal and merit-based purpose of ITI implementation. Joining the agreement was voluntary and the council of each criteria taken into consideration during project appraisal. Each project has to fulfill majority 42 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 43 of these criteria to ensure that it goes along the ITI strategy. These criteria are assessed by of implementation, as the municipalities which were ready with their parts of investments had employees of the Secretariat, both in the case of ERDF and ESF projects. Additionally, ITI projects to wait for these involved in more complicated documentation-related, organizational or political are assessed along the same formal and merit-based criteria as in all the project calls within the problems. In addition, the level of actual functional coordination of investments remains unknown, Regional Operational Programme of Lubelskie. as only a few of them involved in joint planning of ITI investments. The project selection mode used for ERDF ITI projects in LFA is the non-competitive one. This went along the expectations of the municipalities, which wanted to gain direct influence on the Future prospects choice of investments and perceived it as a guaranty of their investment plans. The guarantee In the Lublin Functional Area, the continuation of collaboration among municipalities is perceived was important for municipalities due to the usual intense competition for EU funds, because as potentially useful, but not obvious. They claim that a lot depends on the continuation of the smaller municipalities do not have high chances to secure funding. Moreover, it provided a dedicated EU funding to ITI, as many municipalities are in a poor financial condition and without guarantee that the municipal investments to prepare a technical documentation of a project is the EU funding would not be able to engage in joint investments. Additionally, they are reluctant not wasted. Last, the non-competitive mode also limited the pork-barrel logic in distributing EU towards transferring the agreement into an association, mostly also due to financial constraints funds, which according to some local actors was present in Lubelskie. (membership fee, the need to fund the secretariat and manage HR, legal and procurement issues by the new institution, while now everything is covered by the city). This fear was During the stage of ITI strategy preparation, the municipalities came up with the list of projects expressed after the government suggested that all ITI might need to change their form into an - strategic for the development of LFA - and included them in the official strategy. This also association, a more advanced form of intermunicipal collaboration allowing more independence included an informal division of ITI resources, as the projects differed in terms of budgetary and and activity. Additionally, some of them are skeptical towards the instrument because of too thematic scope. It was especially important to find a solution that was perceived as fair by all much formalization, and the consequent delays. This is directly related to gold-plating in terms municipalities, as without a consensus on this matter mayors would not be willing to engage in of the number of draft versions of preselected projects, control and monitoring procedures, and further collaboration and ITI implementation. Negotiations were complicated due to the dominant formal project partnerships. These elements of the ITI system in Lubelskie, although created with position of Lublin, which argued that all LFA inhabitants use its services and infrastructure and reasonable aims, caused frustration among partners and limited the perceived benefits from therefore almost all investments should be located in the city. This was unacceptable for the collaboration. remaining municipalities, which wanted to invest directly in its own territory. Finally, a consensual agreement followed the logic of proportional funds division according to share of LFA population. At the same time, they highlight that there are areas in which intermunicipal collaboration is very It could be discussed whether such allocation reflects strategic development, but from the much needed, if not necessary. One of them is transport integration, e.g. in terms of ensuring perspective of interjurisdictional collaboration the important issue is the perception of fairness public transport to the outskirts. Currently, this process is managed by the Lublin Transport among key decision makers – in this case mayors (especially in the alternative risk of pork-barrel Authority, based on bilateral agreements with other municipalities asking for the service, usually logic in funds redistribution).In this way, ITI empowered local actors (mayors), decentralizing the these sharing a border with Lublin. There is not any plan of creating a coherent public transport decision-making power to the mayors. The MA still had to approve the strategy and the list of system for the whole agglomeration. Another area noticed by municipalities as potentially preselected projects and assessed them in terms of formal accuracy and quality in the same beneficial on top of what is currently done under ITI, is a joint tourism offer. They highlight that way as projects in the competitive procedure. Additionally, LFA municipalities had to prepare single municipalities find it difficult to reach tourists visiting Lublin and see a potential in sharing project fiches to be accepted for the preselected list by the Managing Authority, and then draft information about each other’s attractions, to encourage tourists to visit more places and to projects before the formal application. In this way, Managing Authority monitored the process stay longer in LFA. Other areas include joint planning of localization of investments, spatial of ITI project implementation, but also formalized the process while it was intended to be more planning and further broadband development. straightforward. To fund ESF projects from the ITI allocation, municipalities have to apply in an official, competitive procedure. A benefit of intermunicipal collaboration noted by local actors is the focus on genuine mutual learning. This includes learning each other’s investments, technicalities that allow improving Formal project partnerships were created among municipalities preparing thematically associated the speed and accuracy of project preparation process, as well as the quality of planned projects. This solution was advised by JASPERS during the preparation of the ITI model to investments. They are no longer isolated in project preparation – which is especially important be implemented in Lubelskie, and then required by the Managing Authority. Interestingly, the in the municipalities that employ a single person for EU-projects – and it is normal to call other partnerships were formally not joined by Lublin, which successfully negotiated to pursue only municipalities in case of doubt, request advice or information exchange. As for mayors, they individual investments. They argued that Lublin’s projects are bigger and more complex than those appreciate the increased strength of their voice when communicating with external institutions prepared by municipalities and wanted to limit their formal interdependence in order to ensure as an LFA rather than a single municipality. Lastly, Both ITI coordinators and mayors built efficient implementation. Each of the four partnerships (Mobile LFA, Green LFA, E-Municipalities personal friendships, which make collaboration a pleasant experience and additionally encourage and Revitalization), elected one municipality as its leader, who took the coordination role of them to attend the ITI meetings. individual projects and organized partnership meetings, at least every four months. The creation of formal partnerships can be assessed positively, as it led to frequent meetings of municipalities Although the municipalities do not engage in many non-ITI funded joint activities, they recently related to similar projects, stimulating knowledge exchange on mutual investments and in this expressed the will of continuing the collaboration by joint preparing strategic documents, defining way coordination. However, it should be taken into account that it also slowed down the process potential future collaboration areas and objectives. The document includes the hope of acquiring 44 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - POLAND 45 EU funds to realize joint objectives, but it seems that at least some of the agreed investments association’s secretariat had a more neutral position, representing the whole agglomeration. are important enough to be realized even without the external support. Still, at least keeping This created less accountability problems and helped in trust building among the municipalities. a joint administrative body at the agglomeration level seems to be crucial in order to ensure The agreement, however, had the advantage of lower administrative costs, which were mostly efficient collaboration, either funded by EU or other external or internal funds. covered by the main city administration. In this way, the ITI office could also use the capacity of a bigger organizational structure, e.g. in terms of thematic expertise. Conclusions Another aspect was the project selection mode. It seems that the non-competitive mode worked better for the purpose of the ITI objectives, as it empowered local actors in terms of decisions The summary will reflect upon crucial conclusions from the analysis of the case studies in the four of key investments allowing to achieve the objectives of the jointly designed strategy. Its limited considered areas: local context, scope of collaboration, institutional mechanisms, and future prospects. competition among partnering municipalities, which were more eager to exchange information on their investment plans, allowing coordination, mutual learning and inspiration, and avoiding The case study analysis shows that the local context significantly shapes interjurisdictional duplication. One of the drawbacks of projects preselection is that the perceived guaranty of the collaboration, its scope, division of power and resources, and final benefits. This is mostly due funds often negatively influenced the speed of funds absorption. However, it has to be highlighted to the trust between partners, especially mayors representing particular municipalities. In both that the collaboration process requires time for achieving consensus and coordination of joint cases, the key division was between the capital and the remaining municipalities. This shows activities. Therefore, policy implementation involving successful intermunicipal collaboration that special attention should be given to active trust building. A particular role in building trust should be expected to have slightly lower funds absorption rates. and achieving consensus among partners played ITI leaders. Their perception of benefits from collaboration (interdependence, metropolitan perspective to development), and relations with Task decentralization to the intermediate bodies at the local level was crucial to realize ITI other mayors was crucial in establishing ties and collaborative mechanisms. Another aspect to be objectives. They played a key role in building local capacity to prepare good quality projects considered is the size of an area. The analysis shows that the functional urban areas should be and brokered the process of ITI investments coordination. They also took the responsibility of carefully delineated. The higher number of partners, the more difficult it is to achieve consensus. preparing the ITI strategy and officially represented the interest of the whole FUA. They actively The more proximity among municipalities, the more potential for common interests. built trust among municipalities through transparency and ensuring an equal share of access to information of all jurisdictions. Through organizing regular meetings at the operational and Another very important aspect is the low capacity at the local level. First, it made the MA political level, they built relations allowing smooth collaboration and ITI implementation. The limit the scope of delegated tasks to Intermediate Bodies and showed the disparities among scope of tasks in the process of implementation was initially low, but it was clear that the more municipalities in the project preparation speed and quality. In both Polish cases the ITI IBs tasks they have, the more importance it is put to their activities and the smoother collaboration built their capacity effectively, enlarging the scope of tasks over time. Moreover, they played goes. They were also directly motivated to speed up implementation, and train stakeholders an important role in stimulating administrative capacity in the municipalities of the functional to prepare good quality projects, as they had a more direct relation to the FUA than regional areas, as they were very active in providing trainings on crucial rules and technicalities, as well authorities and knew well the local challenges. as facilitated information exchange and mutual learning among jurisdictions. They were also crucial in capturing and representing the agglomeration interests, as municipalities usually focus The top-down requirement of project partnership has not turned out to be a good solution. It on their individual ones. provided a structure for regular technical meetings on thematically related projects. But it did not guarantee an actual functional complementarity of projects, as sometimes there was not any In terms of the scope of collaboration, in both analyzed case studies joint activities focused on clear relation between them. It is possible to imagine complementarity of projects from various coordination. This is the least risky kind of collective action, so this pattern can be explained thematic areas, e.g. a bicycle path leading to a touristy, biodiverse destination, or an infrastructural by the fact that before ITI, intermunicipal collaboration was mostly occasional and informal. revitalization project combined with a social intervention. Moreover, formal partnerships led to Consequently, they started collaboration by exchanging information on their individual delays of multiple investments, although majority of municipal parts were ready. This created investments., and at times adjusting to each other. A few cases showed attempts of joint frustration and prevented collaboration from quicker development. Consequently, there should planning of the whole area, e.g. in terms of transport, vocational schools, or kindergartens. Other be flexibility given to local actors when a formal project partnership will be helpful, and when it is few cases included scale effects and savings achieved thanks to joint public procurement and not necessary. This follows the original logic of place-based policies. joint service delivery. In terms of the prolongation of interjurisdictional collaboration in the Polish case studies, the As for the established institutional mechanisms, the cases differed significantly. First, opting for situation varies. In one localization is perceived as obvious and necessary, while in the other local actors are still exploring potential scope and depth. In both cases, EU funds are perceived as a different forms of collaborations determined varying power division mechanisms. Association helpful incentive boosting joint action possibilities. Moreover, in Slaskie and Lubelskie there is determined a more advanced decision-making structure, in which political partners meet regularly greater awareness of interdependence (especially in the area of transport and education due to to discuss ongoing issues related to ITI implementation. It also introduced a more equal voting inhabitants commuting every day around FUAs). They have realized joint challenges and interests, mechanisms, in which each municipality has the same influence on the decision. In agreement, appreciated a unified voice when representing the whole FUA rather than a single municipality, the most meetings happened at the operational level, and the voting system gave the dominant and trusted each other more in comparison to the beginning of ITI implementation. Both areas decision power to the ITI leader. Among advantages of an association there was more flexibility prepared documents planning collaboration in the future, hoping for EU funds to realize post- and scope for extending intermunicipal collaboration beyond ITI implementation. Also, the 2020 objectives, but acknowledging the need of collaboration regardless of the EU’s support. CASE STUDIES - ITALY 47 Italy Background Italy allocated approximately 45% of the total ERDF funds in the 2007-2013 Programming Period for territorial instruments dedicated to SUD, the largest share among all Member States. In the current programming period, Italy ranks second after Poland in terms of real share of funds allocated to SUD, followed by Romania, Czechia and Spain. The total funding for this priority reaches 1.4 billion euros, almost the same as in Romania (1.3 billion euros). Italy is also among the few member states (together with France and Poland) that has more than one OP supporting urban interventions, through ROPs for each development region. Additionally, Italy is one of the four member states that uses, among other delivery mechanisms, a dedicated OP to implement SUD, focused on 14 metropolitan cities defined by law. This program originates from the desire to align EU funding with some recent national reforms in relation to the status of metropolitan areas. Lastly, Italy uses the ITI tool – both for SUD and non-SUD interventions. Thus, the SUD in Italy is implemented with the help of the following tools: • A dedicated national Operational Programme – OP Metropolitan Cities; • Dedicated priority axes under the regional Operational Programme; • it is financed from the regional Operational Programme. Programming Documents The PA states that significant attention is given to the territorial dimension in particular in the area of urban development and interventions in inner areas.2 At least 5% of the ERDF allocation will be invested in sustainable urban development actions implemented in Italy through a dedicated priority axis or Integrated Territorial Investments. The Cohesion policy will be delivered by a combination of national and regional mono-fund and multi-fund Operational Programme (OPs). Those that specifically target urban areas are: • OP Metropolitan Cities – is a multi-fund program, part of the Italian national Urban Agenda and SUD. The program will support a joint effort and cooperative method between 14 Metropolitan Cities designated according to the recent Italian legislation. The goal is to improve the quality and efficiency of urban services and social inclusion for the more fragile population. • ROPs for the 21 regions and autonomous provinces, mostly financed from ERDF and ESF, except the regions of Calabria, Molise, and Puglia, which will each have a multi-fund program, resulting in a total of 39 regional program. 2 http://www.ponmetro.it/home/documenti/versioni-del-programma/ 48 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ITALY 49 FIGURE 13. • Infrastructures for social inclusion (113.3 million euros, ERDF, 19,2%) The metropolitan areas covered by the OP Metropolitan Cities • Technical Assistance (23.5 million euros, ERDF, 4.0%) The budget of each ROP in Italy varies between 64 million euros and 7.120 million euros, depending on the size and development stage of each region. Overall, approximately 510 million euros from the ERDF have been allocated in the ROPs for SUD. The domestic contribution for this axis amasses 347 million euros.3 TABLE 5. Allocations for SUD interventions under the Italian ROPs Allocation for Total budget EU contribution ERDF ESF ROP SUD (mil. EUR) (mil. EUR) (mil. EUR) (mil. EUR) (mil. EUR) Abruzzo 271.5 153.8 153.8 0 23 Basilicata 550.7 413.0 413.0 0 0 Calabria 2,378.9 1,784.2 1,529.9 254.3 0 Campania 4,113.5 3,085.2 3,085.2 0 286 Emilia-Romagna 481.9 240.9 240.9 0 0 Friuli-Venezia-Giulia 230.8 115.4 115.4 0 11 Lazio 969.1 484.5 484.5 0 0 Liguria 392.5 196.3 196.3 0 40 Lombardia 970.5 485.2 485.2 0 60 Marche 585.4 292.3 292.3 0 0 Molise 129.0 76.8 52.9 23.9 0 Source: https://iris.unipa.it/retrieve/handle/10447/225044/409428/Atti_2016_EURA.pdf PA Bolzano 136.6 68.3 68.3 0 0 PA Trento 108.7 54.3 54.3 0 0 The Partnership Agreement states that the ITIs will be used for both urban and inner areas (that do not fall under the provisions of Article 7 ERDF), including cross-border areas (GECTs). Piemonte 965.8 482.9 482.9 48.2 Puglia 7,120.9 3,560.5 2,788.1 772.4 65.0 Sardegna 930.9 465.5 465.5 0 0 Funding Sicilia 4,273.0 3.418,4 3,418.4 0 0 The total budget of the OP Metropolitan Cities is around 859 million euros, with an EU contribution of 588.1 million euros, and a National contribution of 271 million euros. The EU contribution Toscana 792.4 396.2 396.2 0 49.2 comes from the ERDF (446 million euros) and ESF (142 million euros). Umbria 412.3 206.1 206.1 0 30.8 The ESIF funding for this OP will focus on five main priorities: Valle d Aosta 64.4 32.2 32.2 0 0 • Metropolitan Digital Agenda (98 million euros, ERDF, 16.7%) Veneto 600.3 300.2 300.2 0 77.0 • Sustainability of public services and urban mobility (210.8 million euros, ERDF, TOTAL 26479.1 12893.8 15261.6 1050.6 690.2 35,9%) • Services for social inclusion (142.4 million euros, ESF, 24,2%) 3 https://ec.europa.eu/regional_policy/en/atlas/programmes/ 50 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ITALY 51 FIGURE 14. Themes Italian NUTS2 Regions and their level of development The OP Metropolitan Cities has four thematic priorities: • TA – Technical Assistance • TO2 – ITC technologies • TO4 – Low-carbon economy • TO9 – Social inclusion. For the ROPs, the number of thematic priorities varies as follows: TABLE 6. Thematic priorities covered by the Italian ROPs ROP Thematic Priorities Abruzzo TA, TO1, TO2, TO3, TO4, TO5, TO6 Basilicata TA, TO1, TO2, TO3, TO4, TO6, TO7, TO9, TO10 Calabria TA, TO1, TO2, TO3, TO4, TO5, TO6, TO7, TO8, TO9, TO10 Campania TA, TO1, TO2, TO3, TO4, TO5, TO6, TO7, TO9, TO10 Emilia-Romagna TA, TO1, TO2, TO3, TO4, TO5, TO6 Friuli-Venezia-Giulia TA, TO1, TO2, TO3, TO4, TO6 Lazio TA, TO1, TO2, TO3, TO4, TO5 Liguria TA, TO1, TO2, TO3, TO4, TO5 Lombardia TA, TO1, TO2, TO3, TO4, TO6, TO9 Marche TA, TO1, TO2, TO3, TO4, TO5, TO6 The total allocation for ITIs in Italy is around 1.1 billion euros. The Article 7-ITIs in Italy use only Molise TA, TO1, TO2, TO3, TO4, TO6, TO8, TO9, TO10, TO11 half (528 million euros, plus a domestic contribution of 244 million euros) of the ERDF allocation PA Bolzano TA, TO1, TO2, TO4, TO5 for Sustainable Urban Development, while the rest of the funding (512 million euros) goes to dedicated priority axes of the ROPs that have chosen to support SUD. PA Trento TA, TO1, TO2, TO3, TO4, TO5 For example, in the Sardegna Region, three urban areas were nominated in the ROP as eligible Piemonte TA, TO1, TO2, TO3, TO4, TO6 for the ITI mechanism, namely the cities of Calgiari, Olbia and Sassari, each with an indicative Puglia TA, TO1, TO2, TO3, TO4, TO5, TO6, TO7, TO8, TO9, TO10, TO11 budget of around 15 million euros. In the Marche Region, out of the 5 eligible cities, only 3 were selected, each with a budget ranging from 7 to 14 million euros. In the Region of Sicily, a number Sardegna TA, TO1, TO2, TO3, TO4, TO5, TO6, TO9 of 9 ITIs have been nominated, with an average allocation of 40 million euros. Overall, the average Sicilia TA, TO1, TO2, TO3, TO4, TO5, TO6, TO7, TO9, TO10 allocation for an urban ITI in Italy is 30 million euros. Toscana TA, TO1, TO2, TO3, TO4, TO6, TO9 The ITIs for non-Article 7 ERDF territories (the so-called “aree interne”) receive a similar Umbria TA, TO1, TO2, TO3, TO4, TO5, TO6 allocation as the ones for urban areas (512 million euros), again with an average allocation of 30 million euros/strategy.4 For those ITIs that address urban-rural linkages (are interne), EAFRD Valle d Aosta TA, TO1, TO2, TO3, TO4, TO6 funding is also possible. Veneto TA, TO1, TO2, TO3, TO4, TO5, TO9 4 Source: https://ec.europa.eu/regional_policy/en/atlas/programmes/ https://www.sardegnaprogrammazione.it/index.php?xsl=1227&s=35&v=9&c=14759&es=6603&na=1&n=10&ni=1 52 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ITALY 53 existing local approaches of urban or regional development with the priorities of the Operational The ITIs, both for urban and inner areas, have to focus on all or part of the thematic objectives Programme. These strategies are also closely linked with existing sectoral strategies, such as the of the ROPs. For example, in Sicily the urban ITIs had to focus only on the TOs no. 2, 3, 4, 5, 6 ones for smart specialization. and 9.5 More than half of the budget is, however, allocated for energy efficiency of public and private buildings, respectively the promotion of green mobility. The Potenza ITI in the Basilicata Coordination with existing strategies/frameworks Region, with an allocation of 45 million euros, will only finance interventions that fall under the TO 1,3,4,6,9 and 10 out of the 8 TOs of the ROP.6 Since 2013, Italy’s Agency for Territorial Cohesion has been providing technical support to central, regional, and local administrations for the implementation of regional policy programs The medium number of Investment Priorities per integrated urban strategy/urban ITI is six (with and investment projects. New innovative instruments to strengthen administrative capacity a maximum of 11 and a minimum of two), compared to a fixed number of four for the cities in have been introduced in the 2014-2020 Programming Period for public administrations involved Romania, indicating more flexibility for the local authorities in deciding in what to invest. For the in the management of European Structural and Investment Fund programs. Several territorial inner area-ITIs, the number of priorities ranges from 11 to 23. reforms have taken effect, notably reforms of the provincial level along with the establishment of metropolitan cities. In 2016, the Italian government launched Pacts for the South, with eight regions (Abruzzo, Molise, Characteristics of the Sustainable Urban Development Campania, Basilicata, Puglia, Calabria, Sicilia, and Sardinia), seven metropolitan cities (Napoli, Strategies Bari, Reggio Calabria, Messina, Catania, Palermo, and Cagliari), and the city of Taranto, included in these pacts. These contractual agreements commit national and regional administrations to a common framework for interventions, identifying priorities, actions for implementation and Process of selection of SUD strategies responsibilities. In order to become eligible for ESIF funding, 89 Italian municipalities elaborated integrated Within Italy’s Strategy for Inner Areas, 72 project areas have been selected across regions, development strategies, together with 41 inner strategies for inner area-ITIs. Romania and Italy covering 1,072 municipalities and two million inhabitants (3% of the total population and 17% of had a similar approach in dispersing the allocation to a large number of cities. The Integrated the national territory). These areas are peripheral territories, a minimum 40 minutes away from Urban Development Strategies in Italy have been approved with some variations, because of the the main cities. Interventions in those inner areas focus on providing basic services and tackling regional approach, but in general before the ones in Romania. demographic decline, while at the same time trying to build on the existent natural and cultural resources. The average population of such areas is around 30,000 inhabitants. Most Integrated Urban Development Strategies elaborated in Italy target medium-sized populations, as is the case for the territorial strategies for inner areas. There is no national pattern in choosing the area covered by the strategies, varying from a neighborhood (the historical city center of Emilia Romagna, with a small allocation and a clear spatial target) to a Developing Sustainable Urban Development strategies (criteria) multijurisdictional area. Italy is, together with Slovenia, the only member states to use the The managing authority (MA) for each ROP launched calls for strategies, selecting only part of ITI mechanisms for cross-border areas (the Gorizia – Nova Gorica territory).7 them up to the budget ceiling for this instrument at the regional level. The selection criteria were previously approved by the ROP Monitoring Committee and a jury was nominated by the MA. The The Italian approach to selecting the areas that are allocated funds for sustainable urban result of the IUDS assessment is further approved by the regional government (giunta regionale). development and non-urban ITIs has been completely competitive, while Romania adopted a The criteria are divided in three categories: system in which the 39 eligible cities had a dedicated pot of funds. It is important to mention here that this competitive approach originates from the bottom-up approach of the strategy Acceptability criterial: compliance with the administrative procedure for the submission; elaboration, with local and regional authorities being actively involved in design of the Operational Programme. Admissibility criteria: the eligibility of the area, the existing of partnership agreements between the TAUs, adequacy of the Urban Authority; and The Italian cities and ITIs benefited from a larger flexibility in designing their strategies compared to Romania. In most cases, the elaboration stage was very participative, with analysis Quality assessment of the strategy: quality of the context analysis and problem delivered by experts and benefited from a peer-review of the Urban Development Network. These identification; coherence of the strategy and objectives formulation; level of integration strategies are, in general, summaries (sometimes looking more like a project application) that link and complementarity; validity of methodological, organizational and procedural approach of the strategy; adequacy of the governance system. 5 https://www.euroinfosicilia.it/po-fesr-sicilia-2014-2020/politiche-territoriali/agenda-urbana/ 6 http://www.comune.potenza.it/?p=23296 7 https://www.ita-slo.eu/en/programme/integrated-territorial-investment-iti 54 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ITALY 55 Institutional Framework Capacity building One of the problems in implementing the sustainable urban development instruments in Italy is the lack of a national urban policy framework and the fragmentation of responsibilities for Intermediate bodies urban development at the central level. This implies that the cities must interact with different The regional bodies are the managing authorities for the ROPs, while the OP Metropolitan ministries and agencies, a similar context to the Romanian one. Frequent political changes also Cities is managed by the Agency for Territorial Cohesion, that also plays the role of Certifying had a negative impact on the program and strategy design. Authority. Based on the provisions of Article 7 ERDF, new bodies were established in Italy in order to implement the strategies financed by ROPs and OP Metropolitan Cities, namely the The bottom-up approach adopted by Italy in designing and implementing the integrated urban municipalities that received support for SUD. These IBs are called Urban Authorities, employ development strategies had some limits in embedding the place-based planning in the regional, staff nominated by the Mayor and sign a delegation agreement with the MA. national and EU policy framework, indicating the need for more dialogue and exchange of practice between cities. Despite the modest allocation for each city, this new integrated approach has In general, every Urban Authority is organized as follows: managed to develop the local ability of different stakeholder to engage in long-term strategic • Coordination Committee; planning for place-based policies. This approach has also led to a restructuring of some public services by creating multi-dimensional single-access point for social services (e.g. Torino). • Programming, evaluation and communication department; • Selection department; • Implementation department; • Spending check and control department; • Monitoring department; and • Technical assistance department; Urban authorities get financial support for their current activities from the TA axis in the ROP or OP Metropolitan Cities. Implementation responsibilities The MAs for the ROPs and OP Metropolitan Cities have to select and approve the IUDS elaborated by the Urban Authorities, verify the eligibility of the submitted projects and play the central role in monitoring and evaluating the progress of the programs. Monitoring and evaluation Evaluating responsibilities Strategy and monitoring tasks are partially delegated to the Urban Authorities, as IBs, but in an integrative approach with the Management and Information System of the National Operational Programme on Metropolitan Cities. This allows the Managing Authority to obtain the necessary information in order to approve the payment declarations issued by the intermediary body. The evaluation phase, however, lies with the Managing Authority that will consult the intermediary bodies from the 14 eligible cities with respect to the evaluation criteria. The activity of the intermediary bodies is financially supported from the Technical Assistance Axis of the Programme. CASE STUDIES - CZECHIA 57 Czechia Background In its Strategic Framework 2030, the government of Czechia acknowledges that “growth is driven by and probably will remain driven by large cities or settlement agglomerations of closely interconnected medium and small towns.” The Czech Strategic Framework also indicates that large cities are usually more productive, and they tend to benefit their hinterland. Thus, it is critical to identify integrated approaches for these urban areas, and the Czechia government assumes a pro-active role in the support of these urban areas. The pro-active support of the Czechia government for its urban areas can also be seen in the way it has allocated, with the largest dedicate ERDF allocation per urban area, of any EU country (around 138 million euros per urban area). The Czech-EU Partnership Agreement 2014-2020 also stresses the need for integrated development approaches and the strengthening of urban- rural relations. As such, a total of 13 integrated tools have been developed for the 2014-2020 Programming Period, focusing on the main metropolitan areas, urban agglomerations, and smaller urban functional urban areas (see figure below). Furthermore, Community-Led Local Development (CLLD) funds have been accessed by Local Action Groups (LAGs), which constitute cooperation agreements between local administrations (primarily rural areas and smaller towns – see map below), private firms, and/or NGOs. 58 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - CZECHIA 59 FIGURE 15. Integrated urban development tools used by Czechia for the 2014-2020 Programming Period Source: Czech Ministry of Regional Development 60 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - CZECHIA 61 Also, Czechia has an Operational Programme dedicated to a metropolitan area – The Operational Around 202 million euros have been allocated for the OP Prague, for the following priorities: Programme Prague – Growth Pole. TABLE 7. The priority axes of the OP Prague - Growth Pole The Czech SUD Approach Share of the total Around 1.5 billion euros in EU funds have been allocated for the SUD approach in Czechia, with Union ERDF and ESF funding available through the following Operational Programmes: Integrated support Regional Operational Programme; Operational Programme Research, Development and to the Thematic Priority axis Fund EU support Operational Investment priority Education; Operational Programme Enterprise and Innovation for Competitiveness; Operational objective Programme Programme Prague – Growth Pole; and, Operational Programme Employment. An additional indicative allocation of around 0.8 billion euros is available for SUD from the Cohesion Fund, ERDF ESF through the Operational Programme Environment, and the Operational Programme Transport. Formally, the SUD is implemented with the help of two organizational mechanisms: 1.1. Promoting business investment in R&I, developing links and synergies between enterprises, research The Operational Programme Prague – Growth Pole; and development centers and the higher education sector, in particular promoting investment in product 7 ITIs – four focusing on the country’s main metropolitan areas (Prague, Brno, Ostrava, 1. and service development, technology transfer, Strengthening Strengthening and Pilsen) and three focusing on large urban agglomerations (Usti and Labem-Chomutov, social innovation, eco-innovation, public service research, 62.492,932 research, Hradec Kralove – Pardubice, and Olomuc). 31,0 applications, demand stimulation, networking, 1 technological ERDF euros - technological % clusters and open innovation through smart development development specialization, and supporting technological and In addition, Integrated Development Plans of Areas (IDPAs) have been prepared for the functional and innovation and innovation applied research, pilot lines, early product validation areas of the following six towns: Ceske Budejovice, Jihlava, Karlovy Vary, Liberec, Mlada Boleslav, actions, advanced manufacturing capabilities and first and Zlin. Beneficiaries from these six functional areas can access EU funds through targeted production, in particular in key enabling technologies calls for projects. The IDPAs build on the Integrated Urban Development Plans (IUDPs) developed and diffusion of general purpose technologies (Regulation on the ERDF Art. (5)(1) (b)) for the 2007-2013 Programming Period but are extended to respond to the needs of the wider functional area of these towns. Thus, Czech authorities have used EU funds to encourage 2.1 Supporting energy efficiency, smart interjurisdictional cooperation even among the smaller urban areas. energy management and renewable energy use in public infrastructure, including in The seven Czech ITIs are pre-allocated funds from the various priority axes of the Operational public buildings, and in the housing sector Programmes listed above. To access these funds, ITI strategies had to be prepared for the functional 4. Promoting (Regulation on the ERDF Art. (5)(4)(c)) 2. Sustainable shift to a urban areas delineated in the map above. These strategies were checked for compliance by the 2 mobility and ERDF 60.477,031 30,0 - low carbon euros % 2.2 Promoting low-carbon strategies for all types of Czech Ministry of Regional Development, and the various managing authorities of the relevant energy savings economy in all sectors territories, in particular for urban areas, including OPs. The integrated strategies are implemented through targeted calls of the OPs. the promotion of sustainable multimodal urban mobility and mitigation-relevant adaptation measures The Operational Programme Prague – Growth Pole (Regulation on the ERDF Art. 5(4)(e)) The Czech authorities had a relatively unique and innovative approach in the programming of 3.1 Investing in health and social infrastructure EU funds for the 2014-2020 Programming Period. They have devised a separate Operational which contributes to national, regional and local Programme for the Metropolitan Area of Prague, starting from the premise that the capital “is development, reducing inequalities in terms of health a key region within the context of the Czech Republic”, and “any developments in its situation status, promoting social inclusion through improved access to social, cultural and might have a considerable bearing on the prosperity and the development potential of the whole 12.498,586 6,2 ERDF - 9. Promoting recreational services and the transition from country.”8 It is thus understood that if Prague performs well, so will the rest of the country. Promoting euros % social institutional to community-based services social inclusion, (Regulation on the ERDF Art.5 (9)(a)) The basis for the Operational Programme Prague was an analytical document (“Analysis of areas 3 inclusion and combating of intervention under the Cohesion Policy in the City of Prague for the 2014-2020 Programming combating poverty poverty and any 3.2 Providing support for social enterprises (Regulation Period”) prepared by the Department of Strategic Policy of the Municipality of Prague. This is a critical discrimination on the ERDF Art. (5)(9)(c)) point, as it implies that the City of Prague has the internal planning capacity, needed to identify its priorities and prepare a plan to respond to those priorities. In Romania, local administrations, to a 3.3 Enhancing access to affordable, sustainable and 13.304,947 high-quality services, including health care and social large extent, outsource to third parties the preparation of local strategies and plans. ESF euros - 6.6% services of general interest (Regulation on the ESF Art. (3)(1)(b)(iv)) 8 The Operational Programme Prague – Growth Pole 62 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - CZECHIA 63 TABLE 8. Share of the total Administrative set-up for the implementation of the OP Prague Union support Head of the authority/body Authority/body Name of authority/body to the (responsible person) Thematic Priority axis Fund EU support Operational Investment priority objective Managing Authority City of Prague / Prague City Director Programme Hall – EU Funding Dept. ERDF ESF Intermediary subject for ITI Department/ section of Mayor of Prague/director of the implementation1 statutory city, city hall department/ section of the 10. Investing statutory city, city hall in education, 4.1 Investing in education, training and vocational National Coordination Authority Czech Ministry of Regional Director Education and training and learning and 18,143,110 9,0 vocational training for skills and lifelong learning by Development / Department for 4 ERDF - support of euros % training developing education and training infrastructure Direction of Cohesion policy employment for skills (Regulation on the ERDF Art. (5)(10)) and lifelong Certifying Authority Czech Ministry of Finance 2/ Director learning National Fund 4.2 Reducing and preventing early school-leaving Audit Authority Czech Ministry of Finance 3/ Audit Director and promoting equal access to good quality early- Authority 24.190,813 childhood, primary and secondary education including ESF - 12% euros formal, non-formal and informal learning pathways for Body, to which the commission is Czech Ministry of Finance 4 / Director reintegrating into education and training (Regulation Education and on the ESF Art. (3)(1)(c)(i)) to send the payments National Fund learning and 4 Notes: support of 8. Promoting 1. Intermediate bodies with clearly defined levels of writing delegated powers, within the meaning of Article 123, paragraph 6 of the employment 4.3 Equality between men and women in all areas, sustainable Regulation. including in access to employment, career progression, 2.419,081 employment, ESF - 1.2% reconciliation of work and private life and promotion 2. By the government resolution from June 12, 2013 No. 448 to the rules for management and coordination for 2014-2020 Program- euros quality jobs of equal pay for equal work (ESF Regulation Art. 3(1) ming Period the Czech Ministry of Finance has been entrusted with the duties of payment and certifying authority. and mobility (a)(iv) 3. By the government resolution from June 12, 2013 No. 448 to the rules for management and coordination for 2014-2020 Program- of workforce ming Period the Czech Ministry of Finance has been entrusted with the duties of audit authority. Technical 8.063,604 4. By the government resolution from June 12, 2013 No. 448 to the rules for management and coordination for 2014-2020 Program- 5 ESF - 4,0% - - assistance euros ming Period the Czech Ministry of Finance has been entrusted with the duties of payment and certifying authority. OP total ERDF 201.590,104 + ES F euros - - - - The Czech ITIs The Czech government decided to use the use the ITI tool for metropolitan areas / agglomerations Interestingly, in addition to the OP Prague – Growth Pole, and ITI instrument has been established with more than 300,000 inhabitants. Funding for the ITIs available from four ERDF, two ESF, for the Prague Metropolitan Area, with focus on measures with a metropolitan impact. The Prague and two CF Operational Programmes, with a focus on the following areas: transport, education ITI can access funding from the OP Prague, OP Environment, and the Integrated ROP, with a focus and employment, social integration, research and development, innovation and entrepreneurship, on the following thematic areas: Transport (integrated metropolitan public transport system); environmental protection, and technical infrastructure. The Ministry of Regional Development provides the guidelines for the establishment of the ITIs, and the functioning of the ITI intermediary Environment (flood-prevention measures); and Regional Education System (strengthening the bodies is financed from the OP Technical Assistance. capacity of schools in Prague’s peri-urban areas). TABLE 9. The funding for the Prague ITI from the OP Prague is relatively limited (around 17 million euros) The Czech ITIs and focuses solely on improving the attractiveness of the metropolitan public transport system, Number of localities in through the development of park-and-ride facilities in the vicinity of major rail hubs. Metropolitan Area / Agglomeration Number of inhabitants Metro / Aggl. Prague 2,000,000 515 The table below includes an overview of the key entities engaged in the implementation of the OP Ostrava 990,000 233 Prague – Growth Pole. The Managing Authority sits under the city of Prague and is in charge of: Brno 610,000 167 management of the Operational Programme; selection of interventions; financial management Usti-Chomutov 520,000 75 and control of the Operational Programme. The intermediate body in charge of implementing Olomuc 440,000 230 the Prague ITI sits with the Prague Institute of Planning and Development (http://en.iprpraha.cz/), Hradec-Pardubice 330,000 145 which undertakes most strategic and planning efforts for the city of Prague (among others, it Pilsen 310,000 117 also prepares the metropolitan spatial plan for Prague). TOTAL 5,200,000 1,482 64 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - CZECHIA 65 To access EU funds through the ITI mechanism, local authorities have to prepare Mobility Plans FIGURE 16. and Integrated Development Strategies for the area covered. The Intermediary Body, sitting The Brno Metropolitan Area within the core city of each metropolitan area / agglomeration does a first formal / eligibility / quality check of the strategy, with the option of either sending the strategies back for revisions, or submitting them to the Ministry of Regional Development for final approval. The managing authorities of individual OPs subsequently reviewed these strategies, to ensure they complied with OP requirements. ITI strategies follow a simple structure: ANALYTICAL PART Socio-economic analysis Stakeholder analysis SWOT analysis Problems/needs analysis STRATEGIC PART Vision and specific/strategic goals Measures Matrix highlighting integrated solutions Correlation with Horizontal Themes and relevant strategic documents IMPLEMENTATION Management of strategy with personnel structures of ITI holder and requests for communication Description of partnership cooperation Monitoring and evaluation of ITI strategy ANNEXES Financial plan and indicators Risk analysis Statute and the Rules of Procedures for Steering Committee and Working Groups The ITI Intermediary Body sits within the core city and bears full responsibility for identifying priority projects. The IB ITI also sets criteria for project selection, ensures the coordination of the applications of the various beneficiaries in the areas, does monitoring and evaluation, and undertakes communication efforts. Working groups bring together all the relevant applicants to negotiate and identify priorities to be financed. In what follows, the report discusses two ITI examples (Brno and Pilsen) in more detail. Source: iti.brno.cz The Brno ITI The ITI Strategy for the Brno Metropolitan Area focuses on four major areas: 1) transport and The elaboration and implementation of the Brno ITI was made easier because a metropolitan mobility; 2) environment; 3) competitiveness and education; and, 4) social cohesion. A number of cooperation scheme was already in place. The figure below shows the extent of the Brno Metropolitan projects, totaling around 230 million euros have been proposed under these four major pillars, such Area. In 2014, the local administrations in the Brno Metropolitan Area signed a cooperation as: the extension of the tram and trolleybus lines; transport terminals; cycling paths; support for memorandum, starting from the premise that interventions in key sectors (e.g. flood protection, creative industries (i.e. the development of a Creative Center); flood control and river revitalization environmental protection, connective infrastructure, public transport, spatial planning) are more measures; waste management; and the development of metropolitan social infrastructure. efficient if done at the metropolitan level. The Memorandum was renewed in 2018, to include the Financing was accessed from OP Transport, Integrated ROP, OP Environment, OP Employment, utilization of the ITI tool at the metropolitan level, for the 2014-2020 Programming Period. OP R&D and Education, and OP Entrepreneurship and Innovation for Competitiveness. 66 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - CZECHIA 67 FIGURE 17. It is important to note that while local officials in the Local authorities in the Brno Metropolitan Area want to build on the ITI experience to strengthen Vision of Brno ITI Strategy Brno Metropolitan Area see EU funds as an incentive interjurisdictional cooperation, although few mayors would be willing to merge with the City of for metropolitan planning and development, they Brno, to form a contiguous and commonly managed urban area. The areas of most interest underscore that interjurisdictional cooperation for continued metropolitan cooperation include: 1) Material – metropolitan issues; 2) Cultural – brings benefits beyond the EU grants and helps awareness, mutual trust; and, 3) Institutional – forms of cooperation, planning process, conceptual address key challenges the region is facing. The documents, forms of governance, legislation, etc. matrix below highlights the main pillars that stay at the foundation of the Brno Metropolitan Area. FIGURE 19. Questionnaire with the mayors of the Brno Metropolitan Area: the willingness of municipalities to cooperate within BMA(left_and The willingness of municipalities to contribute into a potential metropolitan fund (right) Source: iti.brno.cz FIGURE 18. Strategic pillars of the Brno Metropolitan Area Source: Sasinka, Petr et. Al. 2019. (2019): Cooperation differs. Intentions of municipalities towards metropolitan cooperation in post-socialist space – Brno, Czech Republic, European Planning Studies, Some of the areas that are considered for next year include: a metropolitan spatial plan; the development of a metropolitan expert office/agency; the development of a metropolitan fund; and the possibility of proposing a national metropolitan law. The Pilsen ITI The Pilsen Metropolitan Area includes 117 localities (see map below) and brings together around 310,000 people. For the 2014-2020 Programming Period, the metropolitan area has implemented an ITI tool to access EU funds. The ITI Strategy was prepared by the City of Pilsen and focuses on four major areas: 1) Applied research, and the development of high value-added sectors; 2) Mobility; 3) Education and employment, social inclusion and health services; 4) Environment and technical infrastructure. The ITI projects are financed from the Integrated ROP, the OP Transport, the OP Environment, the OP Employment, the OP Entrepreneurship and Innovation Source: ESPON SPIMA Brno Fact Sheet for Competitiveness, and the OP Research, Development, and Education. 68 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - SPAIN 69 The ITI Intermediary Body sits under the City of Pilsen and its main responsibilities include: • Ensures contact with project applicants and beneficiaries and provides them with information relating to the implementation of the ITI strategy; Spain • Proposes a set of project selection criteria, including verification of the compliance of integrated projects with the integrated territorial development strategy; Background • Launches calls for projects; In Spain urban development has traditionally focused on housing policy and infrastructure • Conducts checks on the eligibility of applications for EU support; projects, with less experience in designing and implementing integrated territorial development. • Undertakes evaluation of applications for conformity with objectives of the ITI strategy; Such initiatives have only recently been tested at the central and regional levels, as evidenced by and the Spanish Strategy on Local Urban Sustainability (EESUL). • Proposes adjustments to project applications. The following actors are responsible for urban development in Spain: • the Secretary of State for Housing and Urban Actions in the Ministry of Public Works is The key decisions within the ITI are taken by the Pilsen ITI Steering Committee, which includes the in charge of the urban development policy in Spain. representatives of all constituent local administrations. Thematic working groups are organized for the key areas covered in the ITI Strategy, with each thematic group being led by a thematic • the Ministry of Agriculture, Food and Environment promotes sustainability, among others, coordinator with expertise in the field. The working groups are organized no later than 10 days at an urban and local level. after the end of a call for projects, and are meant as a support for beneficiaries, with a particular • the Ministry of Finance and Public Administration, through channeling ERDF projects focus on adjusting applications where necessary. dedicated to integrated urban development (URBAN and URBANA) has been assuming the role of facilitator between entities at different administrative levels in Spain. FIGURE 20. • a few regions have adopted the legislative framework to implement the urban development The Pilsen Metropolitan Area and renewal in an integrated approach. Thus, the “Ley de Barrios” program in Catalonia One project financed under the (2004) and in the Balearic Islands (2009), but also the local cohesion program IZARTU Pilsen ITI includes integrated (2001-2008) promoted by the Basque Government have introduced an integrated support for the development of the approach to urban development. technical education sector in the Pilsen metropolitan Area. Around The ERDF and the European Commission have played a central role in promoting the approach 9.6 million euros? are available under to integrated and sustainable urban development, focusing on disadvantaged neighborhoods. the project, with beneficiaries being The Urban Pilot Projects Programme and the URBAN Initiative represented the first steps in 56 elementary schools (which can this direction between 1990 and 2006. In the 2007-2013 Programming Period, the support for use the funds to buy IT equipment sustainable urban development was part of the National Strategic Reference Frameworks and and to construct professional and the Regional Operational Programmes. Furthermore, the URBANA program (that financed 46 technical classrooms), 21 technical projects) was launched in 2007 for municipalities with a population of over 50,000 inhabitants secondary schools (which can use the and provincial capitals, in order to support integrated projects, in line with the previous URBAN funds to buy IT equipment and to program. Last but not least, the Network of Urban Initiatives (RIU) was created in 2008 as a construct professional and technical network and common forum for urban development initiatives supported by the ERDF in Spain. classrooms), and the University of West Bohemia (which can access Programming documents funds for applied research, and for the development of centers of excellence). The Partnership Agreement for 2014-2020 states that SUD initiatives in Spain will focus on Another ITI project focuses on the three priorities:9 extension and rehabilitation of Improving the physical and ambiental environment of urban areas (Sustainable Cities) – tramway track network, for a total of corresponding to TO4 and TO6 around 40.3 million euros. Improving the economic dimension and competitiveness of urban areas (Smart Cities) – corresponding to TO2 Improving the social dimension of urban areas (Inclusive Cities) – corresponding to TO9. Source: iti-plzen.cz 9 http://www.dgfc.sepg.hacienda.gob.es/sitios/dgfc/es-ES/ipr/fcp1420/p/Paginas/inicio.aspx 70 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - SPAIN 71 The SUD will focus only on cities or areas with more than 20,000 inhabitants, in order to obtain • Urban areas formed by a municipality or conurbation of more than 20,000 a reasonable territorial impact and ensure a proper local governance. In terms of funding, SUD inhabitants and peripheral municipalities of less than 20,000 inhabitants. will benefit from support within the multi-regional and regional OP, under dedicated priority axes. These TAUs must present a physical urban continuity, so that they constitute a The coordination between ESF and EFRD will be ensured through the CLLD measures targeting single urban nucleus from the morphologically point of view, in accordance with deprived urban areas. the definition of the urban functional areas. This typology refers to “polycentric areas” characterized by the existence of several centers that coexist in a territory On the other hand, the PA also indicated that the ITI mechanism will be used for several areas in with relations of both competition and complementarity. They are functional order to respond to some territorial needs and priorities, but also for valorizing the opportunities urban areas that do not have a marked dependence on a central nucleus and of specific subregional areas or for implementing integrated interventions for territories with share common problems of diverse order. IUDS for such territories should justify economic or demographic handicaps. The ITIs will be either coordinated directly by the MA of the in a consistent and reasoned manner the existence of common problems, OPs or by regional authorities. demonstrate the urban physical continuity, as well as the reason for which the supra-municipal urban scale is the optimum one to address these problems. A number of four eligible non-SUD regional ITIs have been nominated by the national authorities The involved TAUs have to define a single IB, which could be one of said in the programming stage: municipalities or an existing or newly established supra-municipal body. ITI Azul – to allow the implementation of the Atlantic Strategy with the financial support FIGURE 21. of the ESIF; The Spanish Metropolitan Areas, by category ITI de Mar Menor (Murcia) – for the implementation of the Integrated Management Strategy for Costal Areas in Man Menor and its surroundings – with financial support of the ESF, EMFF and EFRD. ITI for Cadiz Province (Andalucía) – in order to reduce the impact of the global crisis and peripheral position on the local economy; ITI Industrial Extremadura – focusing on the creation of a network of industrial poles in the region, in line with the Industrial Strategy of Extremadura. On the other hand, the national ROP - PRIEST (which includes the former OP for sustainable growth) states that in the 2014-2020 period, the following urban areas may be eligible for the co-financing of operations included in IUDS strategies: • Urban areas constituted by a single municipality with a population greater than 20,000 inhabitants. These strategies of local scale may refer to the entire municipal area or be limited to some areas with a certain morphological and functional typology: historic centers, disadvantaged neighborhoods or suburban areas with specific problems and unique challenges. The IBs for implementing such strategies should be the municipalities themselves. • Groups of municipalities, each with a population exceeding 20,000 inhabitants, may jointly present a supra-municipal strategy, in accordance Source: https://www.laspalmasgc.es/export/sites/laspalmasgc/.galleries/documentos-participacionciudadana/EDUSI-LPGC-VD-14122015.pdf with the definition of the urban functional areas. The Strategies should justify in a coherent and reasoned way the existence of common problems, the complementarity of urban functions, as the reason for which addressing Funding them together is the optimal way to achieve solutions to these problems. They In the 2014-2020 Programming Period, Spain ranks 5th in EU in terms of the real share of must also explain how relations between municipalities will be intensified to take funds allocated to Sustainable Urban Development, just after Romania and Czechia. Both Spain advantage of synergies and complementarities. In this case, the participating and Romania tackle SUD within a single program, through a Priority Axis of a very complex OP Town Halls must define a single IB for the strategies, which could be one of the for the entire country, with multiple Investment Priorities, with a similar allocation (one billion town halls or an existing or newly constituted supra-municipal body. euros in Spain and 1.3 billion euros in Romania). Another common approach is noted in the large dispersion of funds for Sustainable Urban Development to a large number a city, without a clear 72 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - SPAIN 73 focus on major cities. Both countries allocated around one billion euros for ITIs in the 2014-2020 The ITI Azul benefits from the 2nd largest funding in EU after the Danube Delta ITI in Romania, Programming Period, but in Spain part of the funding for these instruments was directed to with a total allocation of 902 million euros, but also the second largest number of Investment urban areas, while Romania invested only in one non-Article 7 ITI. Priorities (50), again after the Danube Delta (63). This ITI covers a coastal area with both more developed and transition regions, whereas in Romania the ITI is located entirely in a less-developed The actions of the priority axis for SUD within this OP will be co-financed by a single Fund, the region. The total population of the territory covered by ITI Azul is of about nine million ERDF, although they will be closely coordinated with the ESF, being able to benefit from the people, while in the Danube Delta ITI live only 200,000. The operations contributing to the flexibility that the Regulation allows to apply 10% of the ERDF resources to FSE type actions. Likewise, the necessary actions for the design, implementation and management of projects Azul regional ITI (non-Article 7 ERDF) will be evaluated within each of the contributing regional belonging to IUDS elaborated by urban authorities will be eligible within this Axis. OPs. Regional authorities include a specific section devoted to ITI in each annual implementation report for each OP. A specific evaluation of the ITI Azul will also be carried out at the central level The OP has initially allocated a total of one billion euros to the SUD axis for integrated urban in 2020 by the DG for EU Funds, which is the managing authority of all ERDF OPs 2014-2020 projects that act on several Thematic Objectives, including those of a social nature, that take in Spain.10 into account the horizontal principle of equal opportunities between women and men, and will be managed directly by the municipalities that are awarded. Themes After a consultation process in the Urban Initiatives Network, and an intervention logic based on As a result of the work of the Urban Initiatives Network, a study was developed that determined an analysis of the typologies of Spanish cities, it has been decided to concentrate the aid of this that the priority axis for SUD will include actions in the Thematic Objectives TO2, TO4, TO6 and axis to the following Thematic Objectives: TO9: • OT2. Improve access, use and quality of information and communication technologies, with a relative weight of 15% of the total of the Axis. • TO2: Improve access, use and quality of information and communication technologies. • OT4. Promote the transition to a low-carbon economy in all sectors, with a weight of 25%. It is one of the areas that have a great influence on sustainable and intelligent urban • OT6. Conserve and protect the environment and promote resource efficiency, 31%. development, due to its transversal application: energy, transport, resources, public services, education, etc. ICTs are particularly important for the improvement of • OT9. Promote social inclusion and fight against poverty, with 28% of the total. the urban services of the local Administration, taking into account the gender gap. On the other hand, the technical review of the multiannual financial framework allocated Spain Urban information and communication technologies will be promoted, including their 2.1 billion euros of structural funds (ERDF and ESF). Of this amount, SUD received an additional accessibility to all citizens, that help to intelligently manage the activities and services 340.5 million euros, resulting in a final allocation of more than 1.6 billion euros. of the city and the connection between them, directed towards the concept of “Smart City” and the “EAdministración local”, in line with the Digital Agenda for Spain. It is TABLE 10. necessary to complement urban development projects integrated with actions in Smart SUD 2014-2020 allocations in Spain Cities that promote the transformation of cities in all their dimensions and in particular that of the eGovernment of the city. This will be achieved through the deployment of Additional allocational for Initial allocation Final allocation for SUD Regional for SUD (million euros) SUD (million euros) management and service platforms for Smart City, sensor networks, actuator networks (million euros) and / or communications networks; as well as the development and / or deployment of Extremadura 73.3 14.4 87.4 Subtotal Less Developed Regions 73.3 14.4 87.4 applications and services to the city, in particular those aimed at improving the level of Andalucía 344.3 189.3 533.6 tourist and citizen services, for example through mobile applications. Castilla-La Mancha 63.1 45.1 108.2 Murcia 39.1 22.4 61.5 Canarias 70.1 30.3 100.4 • TO4: Promote the transition to a low carbon economy in all sectors. Cities are major Subtotal Transition Regions 517.4 287.1 804.5 consumers of energy and very intense in modes of transport that are not always the Galicia 118.8 0.0 118.8 most efficient. Their degree of competitiveness and vulnerability in the future will depend Com. Valenciana 118.6 29.0 147.6 Asturias 25.3 5.0 30.3 on their ability to change the ways of life that require less intensive use of energy, with Castilla y León 38.5 5.0 43.5 lower CO 2 generation. All actions of low carbon economy in cities will be promoted, Cantabria 3.9 3.0 6.9 including energy efficiency, promotion of renewables, sustainable urban mobility, among Baleares 12.7 8.0 20.7 La Rioja 2.0 0.0 2.0 others. Sustainable mobility plans are a great opportunity to reduce emissions through Aragón 8.9 0.0 8.9 measures that contribute to the use of collective transport and soft mobility modes such Cataluña 47.6 0.0 47.6 as cycling. Navarra 2.7 0.0 2.7 País Vasco 9.3 0.0 9.3 Madrid 33.9 0.0 33.9 Subtotal More Developed Regions 422.1 50.0 472.1 Total Spain 1,013.7 340.5 1,651.2 10https://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/integrated_strategies/ Source: https://ec.europa.eu/regional_policy/en/atlas/programmes?countryCode=ES measuring_integrated_strategies_en.pdf 74 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - SPAIN 75 • TO6: Conserve and protect the environment and promote resource efficiency. FIGURE 22. Likewise, cities are strong consumers of natural resources, such as water and soil, Process of preparing Integrated Urban Development Strategies in Spain generate a large amount of waste, air and noise pollution. It is necessary that the urban environment be respectful of the environment, therefore, actions within the TO6 integrated operations must be launched. Within this framework, actions on water and waste may be financed, provided these actions are accessory and relevant to carry out the rehabilitation. In the event that there is an urban rehabilitation plan, the actions will have to be in line with that document. Likewise, the cultural and natural heritage of cities must be preserved and valued, particularly for their tourist interest. Measures directed towards the integral improvement of the urban environment, towards mitigation and adaptation to climate change, in line with the National Plan for Adaptation to Climate Change and towards the reduction of pollution in all its forms, particularly in coherence, will also be supported. with the measures of the National Air Quality Plan. Finally, given the impact of tourism on urban economic activity, the conservation and restoration of the cultural, natural and historical-artistic heritage of cities will have an important role. The ability to monitor and assess the action plan is attributable to a series of indicators. Public • TO9: Promote social inclusion and fight against poverty and any discrimination. participation and the thematic objectives defined in the ESDP are transversal axes of the whole Spatial and economic segregation have increased in some Spanish cities as a result strategy. By now, 123 strategies have been approved and are currently in their development phase. of the crisis, and affected the most vulnerable population, including immigrants, Most of them are from the regions of Andalucía (34), Galicia (16) and Comunidad Valenciana (15). residents with disabilities and people from the rural world. It is necessary to support the In the regions of Cantabria, Islas Baleares, La Rioja, Navarra and Pais Vasco only one strategy was regeneration of communities in disadvantaged urban areas, by also taking into account submitted. A recent call for proposals, has added another 50 strategies that will receive funding. the gender perspective. The actions of the OP in this area will be coordinated with the FIGURE 23. measures of the National Social Inclusion Plan. Actions will be promoted that respond to Integrated Urban Development Strategies in Spain priority 9.b) support for the physical, economic and social regeneration of communities in disadvantaged urban areas, also considering support for local trade in these areas as an accessory and taking into account the gender perspective. The ERDF supports the realization of social, educational, health and care infrastructure for dependent people (nurseries and centers for the elderly) that allow the inclusion and integration of citizens with risk of exclusion, and that enhance the reconciliation of work, family and personal life, and actions in the field of low carbon economy. The intervention logic of the SUD Axis raises a clear differentiation between the strategy and the projects to be co- financed. The first, which should have a long-term focus, should be fed, in addition to the assistance received from the ERDF, from other resources, support and agreements, with a broader horizon, with interventions in all those thematic areas that affect development sustainable urban, while the program of actions financed by the SUD Axis, will address actions that will contribute partially to the development of the strategy. Characteristics of the Spanish Sustainable Urban Development Strategies Process of selection of SUD strategies Since 2015, Spain has launched three public calls for cities pursuing to obtain financial support from the ERDF fund for SUD. In this context, Urban Initiatives Network (RIU) previously produced a guideline oriented to the elaboration of the different IUDS (EDUSI) which included requirements that the strategies must territorially delimit the scope of the action, must reflect an integrated analysis and a diagnosis on which an action plan will be developed. Source: Icaro Obeso Muniz. The role of the spatial dimension in development policies. Integrated Sustainable Urban Development Strategies, an example from Spain. 76 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - SPAIN 77 The map shows that the North-East part of Spain, with many developed regions received less TO2, Sustainable Urban Mobility Plans were the starting point for interventions under TO4; the ERDF support for SUD. Funding was concentrated in the Mediterranean regions and in the West National Plan for Adaptation to Climate Change and the National Air Quality Plan were related / North West, where the regions are in transition or even less developed. to TO6 and the National Social Inclusion Plan to TO9. All strategies were assessed entirely independently by three different ministerial departments (State Secretary for Budgets and Expenditure, Regional Authorities and Ministry of Public Developing Sustainable Urban Development strategies (criteria) Works). They were also examined by three sectoral departments with expertise on the issues The process of strategy elaboration was, in general, closely monitored by the Managing Authority, of Information and Communication Technologies (Red.es), Transition towards a Low-Carbon that provided formal guidance, templates or standardized formats, similar to the Romanian Economy (Energy Diversification and Saving Institute [Spanish acronym: IDAE]) and Social case, with the regional bodies having co-responsibilities for the development of integrated urban Inclusion and the Fight against Poverty (ESF), as well as by the specific networks responsible for development strategies. There were, however, cases in which external guidance has been provided, Environment Affairs and Equal Opportunities. networking and exchanges between municipalities on the strategy design process were carried out (e.g. Malaga). The meetings held by the Assessment Committee were also attended by all those involved (over 30 specialists), as well as representatives from the European Commission. All the assessments Consultations with stakeholders were in general a mix of large stakeholder events, public meetings were validated and ratified by the members of the Assessment Committee.11 and online consultations. In some Spanish cities, such as Malaga, the participative approach proved to be very successful and influential, leading to the decision of the authorities to further The evaluation and selection of applications was carried out on a competitive concurrence basis involve citizens in evaluating and updating the strategy during its implementation, through web based on the documentation provided. In the first phase, the Valuation Commission determined platforms or social networks. whether strategies adhered to technical assessment criteria in accordance with the checklist defined by the MA. Subsequently, it carried out an assessment of those that were admissible The Strategies must respond to the content specified in the guidelines provided by the MA, according to the pre-defined assessment criteria, obtaining a score between 0 and 100 points including the following elements: for each of the IUDS presented. Strategies that obtained a minimum score of 50 points are considered for financing, within the limit of the availability of ERDF funds in each Autonomous The initial identification of urban problems or challenges in the area Community (Region), and with funding going first to the strategies that have received the An analysis of the whole urban area from an integrated perspective highest scores. The Valuation Commission requested and collected as much information as was necessary in order to verify the data to inform the grant aid decision process. A diagnosis of the situation of the urban area, as well as the definition of the expected results and their quantification: current value and objective value at the end of December 31, 2022 based on the outcome indicators defined by the MA Coordination with existing strategies/frameworks The delimitation of the scope of action Spain adopted the ITI mechanism to respond to the challenges posed by the Atlantic Strategy. The European Commission adopted the Atlantic Strategy in 2011 which aims at revitalizing the A Strategy Implementation Plan that will include the lines of action. Line of action shall maritime and marine economy in the Atlantic region. The debate in the Atlantic Forum gave rise be understood as: a measure that implements a public interest policy framed within a to the Atlantic Strategy Action Plan that will guide its implementation until 2020. Its purpose is specific objective, managed by a single entity (beneficiary or agency with an assigned to revitalize the marine and maritime economy in the Atlantic zone and identify priority projects financial path) and characterized by specific objectives and management procedures and recommendations for its implementation. These projects will be financed with sources such and schemes of homogeneous financing. as the ESIF, Horizon 2020 or private investment among others. Priorities identified by the plan The description of citizen participation mechanisms and social agents. are: promote entrepreneurship and innovation; protect, secure and improve the marine and coastal environment and improve accessibility and connectivity. The guarantee of administrative capacity for its implementation. The Azul ITI defined in the PA allows to configure in a single instrument, the contribution of the Reference to horizontal principles and transversal objectives. ESIF to the Atlantic Strategy, facilitating its visibility and monitoring. The territorial scope of the The submitted document shall not exceed 250,000 characters with spaces, including annexes, ITI Azul covers all the Spanish Atlantic regions: Galicia, Asturias, Cantabria, the Basque Country, translations, etc. Only explanatory charts and drawings were accepted in addition to the 250,000 the Canary Islands, and Andalusia. The thematic objectives of relevance for the Atlantic Strategy ​​ Spain, including in characters. The Strategy had to presented in any of the official languages of are TO1, TO3 and TO4. any case a copy of the whole documentation in Spanish. In what concerns the ITI development strategy, several existing sectoral strategies have played The IUDS elaborated by the Spanish municipalities vary across cities. In some cases, the planning a central role in setting-up the investment priorities. Thus, the Digital Agenda for Spain and the documents was prepared for the whole metropolitan areas, in other only for a neighborhood (for regional smart specialization strategies are at the very origins of the measures financed under example Eje del Besos in Barcelona). In some other cases (e.g. Alcara de Henares) target specific neighborhoods in relation to some thematic objectives, while other objectives relate to the whole 11 http://www.conselleriadefacenda.es/documents/10433/3678839/Eval+Selec+EDUSI+Informe+F+Resumen+%28feb+2018%29. territory of the city. The medium number of investment priorities per integrated urban strategy pdf/32d33f18-1894-4831-ba10-b4ec58e438f4 is five, with a minimum of four and a maximum of seven. 78 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - SPAIN 79 Institutional Framework General of Programming and Evaluation of Community Programs will define, together with the beneficiary Entities, the evaluation requirements of the DUSI Strategies, in order to integrate the evaluations that are foreseen in the Urban Development scope, in the Plan of POCS evaluation. Intermediate bodies For Azul ITI, a Commission for the Coordination and Monitoring of the ITI, in charge of preparing The municipalities or the supra-municipal, pre-existing or newly constituted entities, the annual reports for each Operational Programme. It also has to propose updates of the representatives of the functional areas defined that presented IUDS in accordance with the strategy, project portfolios and to inform the monitoring committees of each OP of the progress provisions of the PA have the status of beneficiary entities. The condition of entities benefiting in implementation and results. Monitoring is based on the OP core quantitative indicators from the aid implies that they assume the role of Intermediary Bodies. supplemented by a list of specific city indicators originating from existing strategies and systems. Furthermore, for Azul ITI, an annual progress report has to include not only quantitative The IBs shall ensure adequate management, interpretation and resolution of all aspects related indicators, but also a qualitative assessment of the interventions. The evaluation process for to the files for granting of requested aid, as well as for monitoring, evaluation and control thereof. this ITI involves that every operation will be evaluated within each of the contributing regional The beneficiary entities, which will participate as IBs for the purpose of selecting operations Operational Programme. Thus, regional authorities have to include a specific section devoted to within the framework of the IUDS, will carry out said selection, which will be validated by the ITI in each annual implementation report for each Operational Programme. A specific evaluation Management Authority. The beneficiary entities will request the reimbursement of the ERDF of the ITI Azul will also be carried out at the central level in 2020 by the DG for EU Funds, which grants due to the expenses they have executed. To do this, they will supply the IB on which they is the managing authority of all ERDF OPs in Spain.12 depend, the information that is required of them, sending them the documentary justification determined in the corresponding Instructions. The IB, in accordance with the financial management system provided according to the first chapter of Title I of the fourth part of Regulation (EU) No Capacity building 1303/2013 of the European Parliament and of the Council of 17 December of 2013, and to the One of the main problems in designing and implementing ITI strategies in Spain was the challenges Article 125 of (EU) No. 1303/2013 of the European Parliament and of the Council, of December in aligning local priorities and frameworks with the objectives of the Operational Programme, 17, 2013, will justify to the MA the expenses of the operations duly certified by the beneficiary originating from the thematic concentration. This has also been the case of the Danube Delta ITI entities to proceed to request the European Commission to reimburse the corresponding aid in Romania, that received extensive funding for energy efficiency, a topic that is less important to them. In order to comply with the aforementioned control obligations, the IBs will carry out for a Natural Reserve area. Overall, the ITI experiment is seen in Spain as a major opportunity administrative and field checks to verify and inspect the development of the subsidized actions in attracting private investments in the blue economy. Furthermore, the integrated place-based and the eligibility of the certified expenditure. The beneficiary entities will be obliged to provide approach in some cities created a good platform for improving the horizontal dialogue between the necessary elements for the purposes of the verification and financial control that are carried the actors from the same territory. out both by the IBs and by the other competent bodies at national or European Union level. Implementation responsibilities The MA of the aid granted to SUD is the General Sub-directorate of Management of the ERDF of the General Directorate of Community Funds. The General Sub-Directorate of Territorial Cooperation and Urban Development of the General Directorate of Community Funds and the General Sub-Directorate of Local Cooperation of the General Directorate of Coordination of Competencies with the Autonomous Communities and Local Entities shall be the Intermediate Management Organizations. The entities benefiting from the operations to be co-financed within the framework of the IUDS will be IBs only for the purposes of the selection of operations. Monitoring and evaluation Evaluating responsibilities The IBs together with the beneficiary entities will periodically monitor the progress of the strategies that will include the presentation of the achievements. These achievements will be quantified based on outcome indicators defined by the MA. If the monitoring of the strategies reveals any type of difficulty for the progress in its implementation, the appropriate measures 12 http://www.dgfc.sepg.hacienda.gob.es/sitios/dgfc/es-ES/ipr/fcp1420/p/ITIAzul/Paginas/ITIAzul.aspx will be taken in accordance with the eighteenth section of this same 5 call. The Sub directorate CASE STUDIES - FRANCE 81 France Background Partnership Agreement France has committed to allocating 10 percent of its ERDF-ESF funds to sustainable urban development strategies. SUD is delivered through an integrated and multisector approach, and will aim to: • promote economic dynamism in the territories and fight against exclusion; • limit cities’ environmental impact and enhance living conditions, housing and employment; • address issues in priority districts; • foster local partnerships and shared governance, and provide technical assistance; and • develop new methods of governance between urban authorities and enhance French cities’ attractiveness abroad. These funds (implemented either through an ITI or a dedicated priority axis), will be used to finance the implementation of State-urban authorities’ multi-sectorial contracts for deprived urban areas. France’s urban policy is implemented through a unique format of multi-sectoral contracts signed between the State and urban authorities which incorporate districts, targeted by urban policy spatial coverage. Priority (around 95%) for ITIs will be given to territories that are covered by such contracts (“city contracts”; “contrats de ville” – 300 out of 400 expected to be signed by the end of July for the 2015-2020 period). The method used to identify the targeted areas (which will not all be subject to an ITI) includes: • median income data and poverty concentration (percentage of the population whose income is below 60 percent of the national median income). This index aims to target areas that undergo several simultaneous disadvantages. • it applies to territories that are part of urban areas of 10,000 inhabitants or more. (OPs show exceptions for Britany and Limousin, which will implement 21 urban and one rural ITIs.) All the regions but seven have identified in their OPs the territories that will benefit from ITIs. The others will launch a call for projects. Further conditions applied to the selection process appear in the OPs and the calls for projects. The indicative amounts for ERDF are 850,215,000 euros (10.09 percent of total envelope) and for ESF 62,370,225 euros (1.83 percent of total envelope). Operational Programmes The Partnership Agreement (PA) identifies four main issues to be targeted in the context of urban development: • real estate strategy and spaces’ valorization (mostly to limit urban sprawl); • networks and mobility (develop sustainable and cleaner mobility opportunities; more efficient and smarter networks for electricity, water, transportation, heating; develop capacities of digital networks); 82 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - FRANCE 83 • social cohesion, living conditions and territorial attractiveness (promotion of social mix meet, is the involvement of citizens through “citizen councils” in strategy definition, the steering at the district level; diverse housing supply at the relevant level; development of services, committee and contract implementation (including developing projects and initiatives), and the activities and businesses to balance urban spaces); and evaluation step. • environment and resources (reduction of energy, water, raw materials consumption, and of waste, CO2 and polluting substances production; anticipation of climate change, of Development strategies are drafted at the regional level but there is considerable national natural and industrial risks; greener cities). uniformity. As an example, Evry (Ile de France) uses the following data sources to develop its strategy: Consequently, the most addressed themes in the OPs are sustainable urban mobility and energy • economic data (number of businesses or activity clusters, business creation, fields, efficiency (TO 4 – included in 19 ITIs), resource efficiency and environment protection (TO 6) employment figures); social inclusion (TO 9), support to SMEs (TO 3) and ICTs (TO 2) in 10 to 13 ITIs each. • social data with time comparisons, territorial allocation, and comparisons with other geographical level, departmental and national (median revenue, household structures, Around 10 percent (924 million euros) of ESF-ERDF resources will be used for Sustainable Urban social housing rate, social benefits, graduation rate); Development, to which 200 million euros will be added from the ESF National OP. This amount is • demographic data (youth rate, professional categories); and expected to increase during the period, since the ESF allocations are more difficult to anticipate, as they target the public instead of a territory. The average 10 percent hides regional disparities • urban facilities in resources allocation, for instance, Centre and Poitou-Charentes will comply with the European five percent minimum, whereas Ile-de-France will allocate 20 percent of its funds to SUD. Different funding schemes contribute towards the urban development strategy: • ESI Funds Sixteen out of 27 regions have decided to address urban issues through ITIs, whereas other 10 • State credits for urban policy (program 147) will implement a multi-thematic urban priority. This is consistent with France’s experience in integrated territorial approach, especially for urban policies. Territorial approaches will also be • Other sectorial State funding implemented through 5 interregional OPs which account for 165 million euros, and four pluri- • Subnational authorities’ sectorial credits (Municipalities of the grouping, region, department) regional axes integrated in regional OPs and which amount to 39 million euros. • Deposits and Consignment Fund (also technical assistance) • Social Housing Organizations The most local level of authorities authorized to manage SUD funds is the grouping of subnational authorities and metropolises (special sort of municipalities with extended powers; regular • The National Urban Regeneration Agency (ANRU) municipalities alone are not eligible). Around 150 groupings will be in charge of the implementation of an ITI (= will co-launch the calls for projects with the State), against 62 IUPs during the last In cases where selected areas are already covered by the national urban policy, this document period. The municipalities will be associated to the implementation on their territory when they can form the basis of the integrated strategy. However, it is noted that the better strategies were are competent. not necessarily those drafted by territories previously covered by the Integrated Urban Projects (IUPs), during the 2007-2013 ERDF period). In terms of monitoring and evaluation a Steering Committee is setup which is co-chaired by State representatives and groupings and municipal actors involved in the implementation of the Institutional framework Contract. The Region, the Department, Social Housing structures, the Regional unit of the Deposit A dedicated coordinating structure, Urban and Social Project Management (Maitrise d’oeuvre and Consignments Fund (historical public investor, mostly in housing and infrastructure), several Urbaine et Sociale – MOUS) which is closely linked to the municipalities in charge of contract social security departments, the National Job and Unemployment Agency, Citizen councils also implementation is tasked with coordinating the actions of more specialized actors. The following participate. levels will collaborate to implement the strategy: The CGET is in charge of the national supervision of these contracts. • Departments (social cohesion and inclusion, social housing) • Regions (transportation, professional formation, economic development) Characteristics of Urban Development Strategies • Deposits and Consignments Fund (urban regeneration and social housing; economic France has tripled the number of its territories covered by integrated intervention tools development and ecological transition) compared to 2007-2013 (called Integrated Urban Projects 2007-2013) and some frameworks • State units at the departmental level (all fields or when the national ESF OP on social will be implemented through devoted multi-thematic axes from the OPs. At the national level inclusion is involved) the focus of the strategy relates to three pillars: social cohesion; living conditions and urban • Citizen councils, territorial networks, specialized municipal structures will launch and regeneration; and economic development and employment. There are also three horizontal axes: promote projects, communicate on the existing opportunities gender equality; youth; fight against discrimination. One of the key requirements, that is hard to 84 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - FRANCE 85 A list of suggested indicators has been drafted on demographics, housing, employment, standard Monitoring and evaluation of living, education, safety, health. Data is provided by relevant institutions (State, municipalities In cases where metropolises are implementing SUD through a global grant, they are in charge of and groupings, social policy institutions) and a convention is signed between the Management monitoring and controlling the funds. But such cases are exceptional. There are specific monitoring Authority and the selected territories. This includes ISUD implemented through ITIs or a and control committees for IUSD funds. Membership consists of the MA, the relevant urban multithematic axis. It covers territories for which “city contracts” are formulated. In the case authority, representatives of municipalities which are part of the grouping, the state, and the when SUD target areas that are not covered by the national urban policy national coverage, Deposits and Consignments Fund, in addition to those applied to city contracts or other European conventions will still be used, and articulated with other regional and local policies, but with no funds from the OPs. The MA (the regions) will be responsible for achieving the monitoring and framework document falling under the national urban policy. control activities. It’s the case in Aquitaine for instance, where the Urban authorities will only be in charge of project selection. Intermunicipal groupings are set-up as legal entities consisting of association of municipalities which share a set of responsibilities according to the municipalities’ choice and the legal status EU requirements in terms of evaluation are perceived as an opportunity to apply good practice of their association. The size and the scope of responsibilities of these groupings vary. These to all city contracts. According to a national guidance document, EU funds require a specific groupings will be project owners and are intermediate bodies, in the sense that they implement approach in terms of management, monitoring and evaluation. There should be specific evaluation activities for SUD funds, on top of those applied to the city contracts or the other European the strategy, by selecting the projects/allocating the funds. The intermunicipal groupings are also funds from the OPs. In most cases, the MA of the OP (the Regions) assume responsibility for potentially managers. evaluating the SUD. TA funds from the OP will be used to provide assistance. However, in a more limited number of cases where global grants are used, evaluation is the responsibility of the Responsibilities can be limited (e.g. project selection) or more extensive (e.g. global grant). It’s up Intermediate Body. It is recommended to use an external evaluator for SUD evaluations. During to the MA to decide whether delegation implies a global grant or a more limited delegation of the previous period, the lead actor of the IUP (ex-ITI) was in charge of conveying information and responsibilities. CGET has announced that every “metropolis” (Paris, Marseille, Lyon and around indicator data to the Managing Authority, to run evaluation activities. ten other urban areas of 400,000 inhabitants or more) that would request a global grant would obtain it. However, the use of global grants is expected to be limited. Some Regions implement SUD through ‘City contracts’ which involves a large range of actors and of which the urban authority/intermunicipal grouping (Métropoles et EPCI) is the lead member. It is in charge “at least” (according to PA) of project selection. These are monitored by the Steering Committee (COPIL). Within this framework delegation of implementation responsibility to municipalities is possible. Other also apply SUD Funds to territories that are not covered by City Contracts. Another exception applies to two Regions which apply SUD Funds in rural areas. Intermediate bodies (art.123-6 CPR) are the intermunicipal groupings which are the lead member of the Steering Committee of the City Contracts, which is the main (but not only) framework under which SUD funds will be used. Technical committees (with thematic working groups) prepare Steering committees’ meetings. In some cases, these intermunicipal groupings have already been in charge of some ERDF funds as intermediate bodies in the past and therefore had some previous experience. However, in other cases there is limited or no experience. At the intermunicipal level, the regions have dedicated 5 percent of OP Technical Assistance/project engineering to help some future intermediate bodies. A call for interest was launched, and all the respondents, twelve intermunicipal groupings, were accepted. Besides Bordeaux Metropole, these are mostly groupings led by smaller towns. The SUD approach is perceived as an opportunity to develop dialogue and coordination between the different levels of policy-making. CASE STUDIES - PORTUGAL 87 Portugal Background The territorial focus of SUD in Portugal is at metropolitan level and top-level urban centers as defined in the national spatial planning strategy, and the SUD is implemented through dedicated priority axes under regional Operational Programmes. The aim of the Portuguese SUD approach is to: • Strengthen the role of metropolitan areas in the structuring of the urban system, with a particular focus on the challenges associated with low carbon strategies (e.g. energy efficiency and sustainable mobility) and regeneration and urban renewal; and • Promote urban regeneration in urban centers that structure the national urban system and that provide an interface in the articulation of urban-rural linkages, namely the so-called top-level urban centers defined in the spatial planning strategy PNPOT/ PROT) and Urban Renewal Areas (Áreas de Reabilitação Urbana) as defined in legal regime for Urban regeneration (Decree-Law No. 307/2009, amended by Law No. 32/2012 of 14 August). The specific urban centers are identified in the relevant regional OPs as follows: TABLE 11. Specific urban centers in Portugal’s territorial areas Territorial areas (top-level urban centers) Arouca; Espinho; Gondomar; Maia; Matosinhos; Oliveira de Azeméis; Paredes; Porto; Póvoa do Varzim; Santa Maria da Feira; Santo Tirso; S. João da Madeira; Trofa; Vale de Cambra; Valongo; Norte Vila do Conde; Vila Nova de Gaia; Braga; Vila Real; Bragança; Barcelos; Chaves; Guimarães; Lamego; Macedo de Cavaleiros; Mirandela; Penafiel; Viana do Castelo; Vila Nova de Famalicão. Aveiro; Coimbra; Figueira da Foz; Leiria; Viseu; Guarda; Covilhã; Castelo Branco; Torres Vedras; Caldas da Rainha; Ovar; Ílhavo; Águeda; Cantanhede; Pombal; Marinha Grande; Mangualde; Centro Tondela; Seia; Gouveia; Oliveira do Hospital; Ourém; Tomar; Torres Novas; Entroncamento; Abrantes; Alcobaça; Nazaré; Óbidos; Peniche e Alenquer Alcochete; Almada; Amadora; Barreiro; Cascais; Lisboa; Loures; Mafra; Moita; Montijo; Lisboa Odivelas; Oeiras; Palmela; Seixal; Sesimbra; Setúbal; Sintra; Vila Franca de Xira. Évora; Beja; Portalegre; Santarém; Elvas; Campo Maior; Sines; Santiago de Cacém; Santo André; Ponte de Sôr; Nisa; Vendas Novas; Montemor-o-Novo; Estremoz; Reguengos de Monsaraz; Alentejo Castro Verde; Aljustrel; Serpa; Moura; Odemira; Grândola; Alcácer do Sal; Almeirim; Benavente; Coruche; Cartaxo; Rio Maior. Source: “Planos Estratégicos de Desenvolvimento Urbano”, Convite para a apresentação de candidaturas. The rationale for selecting these areas is described in the Partnership Agreement as being informed by functional characteristics (particularly in the metropolitan areas), coherence and impact considerations along with alignment with the Urban Renewal Areas (ARU) defined in the pre-existing legal framework for urban development policy (Law No. 307/2009). 88 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - PORTUGAL 89 Funding TABLE 14. SUD investment priorities and specific objectives The Partnership Agreement sets out the following financial allocations to SUD. Investment Priorities TABLE 12. SUD allocations in PA IP4.5: Promoting low-carbon IP6.5: Adoption of measures to strategies for all types of IP9.8: Support for physical, improve the urban environment, territories, in particular urban Fund Allocation Share of Fund economic and social regenerate cities, recover and areas, including the promotion Regional OPs regeneration of deprived decontaminate brownfield sites, of sustainable multimodal ERDF 908,000,000 euros 8.4% communities in urban and rural including conversion zones, reduce urban mobility and relevant areas air pollution and to promote noise ESF 96,000,000 euros 1.3% adaptation and mitigation reduction measures Source: Partnership Agreement for Portugal, p.313 measures Specific Objectives The final allocations to SUD were agreed as part of the regional OP negotiations and range from 11.9 percent (Centro) to 14.1 percent (Alentejo) of total ERDF allocations. Promote sustainable mobility within a wider low-carbon Promote environmental, urban Promote social inclusion in framework of economic TABLE 13. disadvantaged urban areas and landscape quality of the and social development and SUD allocations in Portuguese ROPs Norte through physical, economic and urban centers as a factor of strengthening of cities as territorial structure, social welfare social regeneration initiatives privileged spaces for integrated Share of and regional competitiveness policies and anchors of regional Investment Allocation Share of OP Priority Axis Fund ERDF + development Priority (€) ERDF ESF 4.5 ERDF 209,277,052 Promote social inclusion in Support sustainable Promote environmental, urban P5. Urban disadvantaged urban areas urban mobility and the Norte System 6.5 ERDF 102,868,742 13.76% 11.39% Centro through physical, economic and and landscape quality of the de-carbonization of urban 9.8 ERDF 72,608,789 urban centers social regeneration initiatives centers P9. 4.5 ERDF 63,000,000 Strengthening Promote sustainable mobility Centro 6.5 ERDF 134,000,000 12.05% 9.79% within a wider low-carbon the Urban 9.8 ERDF 14,000,000 Promote social inclusion Promote environmental, urban framework of economic and Network in disadvantaged urban and landscape quality of the social development, promoting P8. Sustainable 4.5 ERDF 30,000,000 Alentejo and rural areas through economic and social cohesion urban centers Lisboa Urban 6.5 ERDF 19,000,000 11.89% 8.88% physical, economic and social and ensuring territorial equity Development 9.8 ERDF 25,000,000 regeneration initiatives in access to infrastructure collective facilities and services P4. Sustainable 4.5 ERDF 25,291,187 of general interest Alentejo Urban 6.5 ERDF 86,3777,252 14.13% 11.72% Development 9.8 ERDF 15,243,045 Promote environmental, urban Source: ROPs Norte, Centro, Lisboa and Alentejo; Joint call for Urban Development Strategies by ROP MAs. and landscape quality, through Physical, social and economic regenerating brownfield sites Promote ecological mobility Lisboa regeneration of disadvantaged and improving the quality of with low carbon emissions communities Themes information and monitoring of air quality The thematic focus of the SUD Priority Axis in the Regional OPs (North, Center, Lisbon, and Source: “Planos Estratégicos de Desenvolvimento Urbano”, Convite para a apresentação de candidaturas. Alentejo) is on three Investment Priorities (IPs). • Physical regeneration of economic and social communities and deprived urban areas through integrated interventions with physical (including buildings), economic and social dimensions (IP 9.8); Characteristics of the Sustainable • Improving the urban environment and the regeneration of cities, focused interventions aimed at upgrading public spaces and buildings (including housing), in order to improve Urban Development Strategies urban environment (IP 6.5); and Process of selection of SUD strategies • The regeneration of urban centers in line with the spatial planning strategy, particularly The responsibility for approving the UDS rests with the MA of each Regional OP based on a through the mobilization of investment priorities for reducing CO2 emissions and competitive selection process. The main evaluation principles/criteria relate to the OP indicators promoting more sustainable urban mobility systems (IP 4.5). and targets, the rationale and proportionality of the proposed investments, the administrative The regional OPs implement the SUD through integrated interventions to support urban capacity of urban authorities, socio-functional characteristics of the areas, coherence and regeneration, mobility and deprived urban areas, with some variations across OPs in the coordination of interventions with other urban regeneration instruments, and sufficient critical formulation of the specific objectives within these investment priorities. mass to achieve impacts. There were two stages in the evaluation/selection process. 90 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - PORTUGAL 91 • Stage 1. The first phase comprised the analysis of the (1) coherence and quality of the Expected Results, critical success factors and interdependencies; and UDS taking account of a pre-existing Integrated Strategy for Territorial Development and Governance model. (2) the level of ambition concerning the investment goals and results, and the governance, monitoring and evaluation arrangements. A qualitative assessment is undertaken using Criteria to structure urban Requirements stated in call for Urban Development Strategy development strategy three ratings (good, sufficient and insufficient). A rating of “insufficient” leads to a rejection with the possibility for a revised resubmission taking account of the terms Data should cover socio-functional characteristics of the area, the main problems and priorities based on pre-existing statistical indicators largely from census data. and timeframe set in the MAs decision. Proposals with a “good” or “sufficient” rating are Data used to describe urban context: assessed again by the MA in cooperation with public agencies with competences in the Statistical data Accessibility data should be based on national institute of statistics data. Analysis (demography, employment, industrial) of deprived areas should include at least 3 of the following indicators: long-term areas covered by the plans, namely the DG for Territory, the Institute for Housing and unemployment, economic activity, poverty and social exclusion, social exclusion Other referenced evidence Urban Rehabilitation, the Institute of Social Security and the Institute for Mobility and linked to immigrants and minorities, early-school leaving, crime, demographics and environment. Transport. This opinion is based on the evaluation principles/criteria noted above. Objectives and strategy must be provided, including the coherence and articulation • Stage 2. The second stage involves negotiations between the MA and municipality on with OP objectives with other urban development tools: the configuration and rationale of the investments, the commitments in terms of results The integrated territorial development strategy for ITIs approved at the level of Focus of strategy NUTS III (intermunicipal communities and metropolitan areas); and targets, and the capacity for implementing the UDS. These negotiations can lead to (main aspiration, vision, key objectives): adjustments in the content of the plan in terms of ambition, the level of detail, as well Programs and territorial plans covering the territory in question, notably the PROT and Municipal Master Plans; and as the contribution to the goals and objectives of the OPs and the financial allocations. Urban Renewal Areas, based on the legal framework for urban policy. The final approval decision by the Management Authority includes: Action schedule: Is there a breakdown of Types of actions and a timetable for completion must be included in the urban actions and/or a timetable for completion? development strategy based on a fiche annexed to the call. • The powers delegated by each Management Authority in relation to the costs associated with the exercise of these powers, financed under the technical assistance of the Funding scheme: Summary of resources needed and potential sources Funding levels and sources must be specified in a model fiche respective OP; (including but also beyond ERDF/ESF)? • The funding amounts and timing of funding; The actions must specify the actors involved • The commitments in terms of investments, goals and results; A section on governance arrangements is also required. • Governance issues concerning the instruments and leadership mechanisms, participation, The IUDS indicators should take account of OP indicators under the urban development priority axis: (1) Output Indicators, including number of sustainable accountability, monitoring, supervision, evaluation and audit; and Framework for delivery: Who will deliver urban mobility plans implemented, mobility projects approved, high-demand actions? What are the governance transport corridors implemented, multimodal interfaces supported, paths • Any other conditions deemed necessary. arrangements? Which indicators will be dedicated to light transport (pedestrian/cycling) or reducing carbon emissions, used to monitor progress? open spaces created or regenerated, buildings constructed or rehabilitated; and (2) Results indicators, including Increase in satisfaction of residents in the areas with Coordination with existing strategies/frameworks urban development strategies; estimated emission of greenhouse gases; The Urban Development Strategies are informed and designed on the basis of three pre-existing plans: Urban authorities can propose alternative indicators if the indicators above are not relevant to the proposed strategies. • Sustainable Urban Mobility Plan at NUTS III level. Is there a description of risks? What are A risk analysis is not formally required. However, critical success factors must be • Urban Regeneration Action Plan in a defined geographical area, based on the Urban they? What steps are proposed to mitigate identified Renewal Areas (ARU) created under Decree-Law No. 32/2012 and in specific historical Source: “Planos Estratégicos de Desenvolvimento Urbano”, Convite para a apresentação de candidaturas, June 19, 2015 centers, riverside zones or brownfield sites. • Integrated Action Plans for the disadvantaged community targeted, with a defined territorial area at the infra-municipal level based on socio-functional characteristics. Institutional Framework The institutional framework for delivering the integrated sustainable urban development requirements in Cohesion policy is set out in the Partnership Agreement, Operational Programmes Developing Sustainable Urban Development Strategies (criteria) and in domestic legislation defining the ESIF governance model (Decreto-Lei No. 137-2014, The call for Urban Development Strategies under the regional OPs was launched on June 19, September 12, 2014) and a national regulation for the theme Sustainable and Efficient Use of 2015 and ran until September 10, 2015. It set out the following required content: Resources (Portaria No. 57-B/2015, February 27, 2015). Diagnosis; Integrated Sustainable Urban Development will be implemented through a priority axis in the Objectives and strategy; regional OPs Norte, Centro, Lisboa and Alentejo in the mainland of Portugal. The regional OPs are Investment priorities; managed by the Regional Coordination and Development Commissions, decentralized agencies Components of the applicable action plans (Plan for Sustainable Urban Mobility, Action with responsibility for regional development. The Managing Authorities are responsible for Plan for Urban Regeneration and Integrated Action Plan for Disadvantaged communities); approving Urban Development Strategies, which are proposed and implemented by municipalities. 92 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - GERMANY (NORDRHEIN-WESTFALEN) 93 Intermediate bodies Municipalities with approved urban development strategies will have delegated responsibilities Germany (Nordrhein-Westfalen) as intermediate bodies and have authority for implementing the strategies and the selection of projects, based on project selection criteria approved by the respective OP Monitoring Committee. Background Implementation responsibilities The Managing Authorities of the regional Operational Programmes are responsible for approving Programming Documents Urban Development Strategies - proposed and implemented by municipalities - and verifying the eligibility of projects and their consistency with the respective Urban Regeneration Action Plans Germany has one national ESF OP (managed by the Federal Ministry of Employment and Social during the implementation phase. Affairs). In addition, each of the 16 Länder/Regions has an ERDF OP and an ESF OP (except for Lower Saxony, which has a joint ERDF/ESF OP) (managed by Land Ministries). All decisions Within the framework of EU and national rules, municipalities have delegated responsibilities (as on the OP strategies and structures are taken at the level of relevant managing authority –i.e. intermediate bodies) for implementing the urban development strategies and project selection structures tend to differ between Länder. However, since the 2007-13 period, there have been (based on project selection criteria approved by the respective OP Monitoring Committee) regular meetings between all managing authorities, which has led to the discussion of common ensuring the alignment of the selected projects with the approved Urban Development Strategy. problems and the adoption of shared positions vis-à-vis the commission on specific issues. Partnership Agreement Monitoring and evaluation The PA (pp.216-221) notes that local authorities (i.e. Städte, Kreise and Gemeinde) and Länder already have significant knowledge in terms of urban development strategies and spatial development plans. Evaluating responsibilities Most ERDF OPs (which are all at Land level) fund integrated urban development projects in The responsibility for evaluating the Urban Development Strategies lies with the ROP MAs, which the context of integrated functional-spatial development strategies, often involving cooperation will undertake mid-term evaluations of the Urban Development Strategies in 2019. between a range of different actors. The approach taken will vary between Länder i.e. either via: • ITI (in Schleswig-Holstein); Capacity building • Predefined urban centers implemented through mixed priority axes, which include funding Technical assistance funding is available to fund the costs of responsibilities delegated by for more than on Thematic Objective (TO); or Management Authorities to municipal intermediate bodies. A call was also launched to support the development of Urban Development Strategies, funded by the TA of the OPs, with a limit of • Competitive calls or project calls for ISUD projects implemented through mixed priority 25,000 euros per award. axes, which include funding for more than on Thematic Objective (TO). Some ESF OPs also fund ISUD e.g. via the federal ESF OP. This will continue the existing approach of funding projects aimed at improving employment and educational opportunities for disadvantaged people in structurally weak urban areas. The PA states that the relevant OPs (i.e. in Schleswig-Holstein) include information on the principles used for selecting ITI areas and for identifying and selecting projects. In particular, it notes that projects will have to demonstrate European value added. To the extent that ITI support sustainable urban development, the relevant actors and project applicants will take responsibility for ensuring that projects meet the requirements of ERDF regulation Article 7(4). The Schleswig-Holstein ERDF OP identified the areas to be covered by the ITI. The German PA also set out principles which were used for selecting all projects in the field of integrated urban and regional development (i.e. not only those funded via an ITI), and which are already well-established components of integrated urban development strategies in Germany: • Analysis of the strengths and weaknesses of the town and areas within the town; • Formulation of coherent development goals for the urban area and a vision for the town; 94 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - GERMANY (NORDRHEIN-WESTFALEN) 95 • Coordination of existing spatial, sectoral and technical plans and policy measures, and Total ERDF funding will be just under 218 million euros, or 17.96% of ERDF funding. steps to ensure that planned investments contribute to balanced development of the Ultimate responsibility for the ISUD will lie with the core authorities in charge of the NRW ERDF OP: urban area; • The ERDF OP managing authority is a unit in the Land Ministry for the Economy, Energy, • Spatial bundling and coordination of public and private funding in the context of a Industry, SMEs and the Craft Sector, and is responsible for designing the project call for partnership-based, integrated urban development policy; and tender, oversight, monitoring, evaluation, • Coordination of planning instruments at local and urban areas, as well as the participation • The ERDF OP certifying authority is a separate unit in the Land Ministry for the Economy, of citizens and others who can contribute to the economic, ecological, climate-oriented, Energy, Industry, SMEs, and the Craft Sector, social, demographic, and cultural quality of these areas. • The ERDF OP audit authority is in the Land Finance Ministry. The Managing Authority has delegated significant tasks to intermediate bodies. In the case of More than five percent of ERDF funding in 2014-20 was be allocated for integrated urban development the ISUD, there is a division of labor as follows: projects (compared to 7.5 percent for sustainable, integrated urban development in Germany in 2007-13). ERDF funding for ISUD mainly focused on TO6 and TO9, with some additional funding for • The Land Ministry’s five de-concentrated offices in NRW’s regions (Bezirksregierungen) are TO1, TO3, TO4 and TO5. ESF funding for ISUD will focus on TO8, TO9 and TO10. named as formal OP intermediate bodies, and are responsible for financial management (commitments, payments, etc.), and for final formal decisions on project selection, Operational Programme • The local authorities, which are responsible for designing and implementing the ISUD and for selecting projects within these strategies (subject to the formal approval of the One of the four priority axes in the Nordrhein-Westfalen ERDF OP (five, including Technical Bezirksregierungen). Assistance) is called: Sustainable Urban and Quarter Development / Preventative Approach Further, a Land Ministry-level committee will be set up to select the strategies to be funded – (Mixed Priority axis). There will be no ITI. Instead, this Priority axis will fund integrated strategies made up of the representatives of the Bezirksregierungen and external experts in relevant fields and projects within these strategies. Thus, integrated strategies are a precondition of funding, and e.g. urban development, preventative measures, social issues, environment). these strategies must include a description of the economic, environmental, climate, demographic and social challenges affecting local authorities (as noted in ERDF regulation Article 7[1]). Characteristics of Urban Development Strategy This approach is framed by existing Land policies, notably: NRW Land launched a multifund (ERDF, ESF, and EAFRD) call for proposals for integrated urban • Preventative approach to problems relating to social inclusion, notably under the banner strategies in February 2015, which will also draw on domestic Land and city authority funding. ‘Leave no child behind’; The call covers all three EU Funds (i.e. including EAFRD) because the Land government has taken a political decision to endeavor to improve coordination and integration of the different EU • Integrated Framework Strategy for the Social City Programme and the Preventative Funds in 2014-20, even though this is often challenging (e.g. due to slight differences in the Approach to Urban Quarter Development; and interpretation of the rules of the three Funds). • Targeted funding for the reclamation and re-use of industrial and ex-military land; and The calls-for-proposals are organized around two separate sections: • Biodiversity strategy. • One funded by the ERDF and ESF, focused on integrated urban strategies for areas/ quarters in cities and towns, and The ISUD will be selected via thematic project calls targeted on local authorities and other local actors. An expert jury will assess the ISUD-proposals on the basis of transparent criteria and will • One funded by the EAFRD and ESF, focused on integrated local strategies or village make recommendation on funding. Depending on the results of an ex ante assessment, the NRW development strategies for rural areas. authorities may also decide to allocate ERDF funding for the creation of an urban development fund, which could provide loans to local authorities and related bodies. Are ISUD based on pre-existing strategies? The Land and city authorities in NRW already have considerable experience with integrated urban The NRW ERDF OP Priority axis focuses on TO6 and TO9, and each list of funded projects must strategies, which inter alia were funded by the Land ERDF OP in 2007-13. Existing strategies were cover both TO. Specifically, the objectives are: often used as the basis for participating in the call of February 2015. However, they must be • TO9(b) “providing support for physical, economic and social regeneration of deprived revised and updated to meet the requirements of the call, notably: communities in urban and rural areas”, • A description of problems facing specific areas; • TO(6) “taking action to improve the urban environment, to revitalize cities, regenerate • An assessment of the regeneration measures undertaken; and and decontaminate brownfield sites (including conversion areas), reduce air pollution and • Strategic goals and specific measures consistent with the call, namely a focus on promote noise-reduction measures”, and preventative measures for social integration and poverty prevention; inclusion of the five • TO6(d) “protecting and restoring biodiversity and soil and promoting ecosystem services, Priority axes of the ERDF OP; and at least one project related to the environment and including through Natura 2000, and green infrastructure.” one related to social integration. 96 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - GERMANY (NORDRHEIN-WESTFALEN) 97 The structure of the ISUD Funding sources The call for tender in February 2015 set out the elements to be included in the ISUD. These The project call states that priority will be given to measures which can be co-funded by existing elements, which are agreed by the ERDF/ESF Monitoring Committee, were used as criteria for federal and Land programs, notably: selecting which ISUD will be approved for funding. These elements included: • Core funding programs (such as employment assistance for individuals, delivered via the • A SWOT analysis, focused on the economic, ecological, climate-based, demographic and Federal Employment Agency [Bundesagentur für Arbeit] or the Jobcenter), which may be social challenges facing the areas targeted by the ISUD; co-funded by EU resources; • An appropriate action strategy setting out development goals which are anchored in city- • Federal programs such as “Education, business and labor in urban quarters” (Bildung, wide development strategies (notably for social planning and preventative measures); Wirtschaft, Arbeit im Quartier, BIWAQ) and ‘Strengthening young people in urban quarters • Concrete measures including costing and financial plans and, if the aim was to obtain (Jugend stärken im Quartier), which are funded by the ESF Federal OP and are closely ERDF funding, also details of projects that related to the following specific goals of the related to the ISUD approach; ERDF OP: • Land programs for housing development, which can be used for themes that are not • Goal 11: Improvement of the integration of disadvantaged social groups in eligible for EU funding; employment, education and the community; • Support for city authorities for jobs in the fields of early childcare, schooling and policing. • Goal 12: Ecological revitalization of towns and urban hinterlands; The ISUD will combine funding from the ERDF/ESF funding (up to 50 percent), together with • Goal 13: Development and reclamation of land for urban development or domestic Land funding (30-40 percent) and local authority funding (10-20 percent). ecological purposes; • Respect for the horizontal goals of sustainability, non-discrimination, and gender equality; Institutional framework • A description of implementation structures and procedures at a local level (e.g. The institutional frameworks for the ISUD in NRW are complex. This section outlines the main management of urban quarters; citizen participation; inter-departmental, and cross- entities at different levels and also their main tasks. The NRW ERDF OP had 108 intermediate/ sectoral cooperation); implementing bodies in 2007-13 – but this has been reduced significantly to seven major IB plus two small IB in 2014-20. The new IB are: • A description of civil society engagement; • NRW’s five administrative subregions (Bezirksregierungen) – i.e. non-elected regional • A description of probably private investment (by housing, service sector, and commercial arms of the Land administration; firms); • An agency based in a major research center, which is responsible for most support for • A description of impact-oriented monitoring and quality control procedures (based on innovation (Leitmarkt Agentur NRW); indicators used for selecting ISUD-areas); • The Land development bank (NRW.BANK); • Statements on how the stated goals are to be achieved; and • Two agencies, tasked with administering specific, smaller amounts of funding. • Statements on projects to be funded through loans (e.g. housing development or the Land’s urban development loan fund). The reduction in the number of IBs has enabled various other changes: • The IB will be responsible for most of the day-to-day implementation tasks (e.g. What data is used to describe urban context? committing funds and making payments) and the MA will give them blocks of funds to manage (whereas in 2007-13 core financial management tasks were undertaken by the The selection of areas to be targeted was based on a citywide comparison, using indicators which MA or by the CA). reflect the specific problems of different areas e.g. • Demographic structure, especially an above-average percentage of children and young people; • The IB will undertake day-to-day project monitoring, whereas the MA will focus on quality control, on sample project checks, on cases where there are conflicts, and on • Social structure, such as unemployment rates the percentage of recipients of large projects. unemployment or welfare benefits (SGB II or SGB III) or sickness, disability and pension • The IB will enter project data directly into the monitoring database, whereas in 2007-13 benefits (SGB IV), especially among people under 18 years of age; and the percentage of only the MA could do this. single parent families; • The IB will be members of the OP monitoring committee. • The self-employment rate in trade, services, commerce and craft sectors; • Poor environmental conditions; The NRW managing authorities cites the following benefits of having fewer IBs: • Easier to ensure a consistently high-quality administrative approach across all • Weaknesses in the city’s climate situation; components of the OP; • Deficits in the physical urban environment; and • Easier to ensure that all staff are up-to-date in all procedures and technical tasks, and • Below-average housing quality. able to provide appropriate and correct advice to applicants; 98 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - GERMANY (NORDRHEIN-WESTFALEN) 99 • More transparent and streamlined structures for applicants, with a single IB now • Designing the ISUD call for tender (which sets out the criteria for selecting the ISUD), in responsible for all phases of particular calls (whereas, in the past, one entity was cooperation with other Land ministries, notably the Ministry for Construction, Housing, sometimes responsible for the application phase and a separate entity for the Urban Development and Transport, which leads on urban development; implementation phase); and • Inspecting project selection procedures and results; • Clearer definition of responsibilities between the managing authority and the IB. • Deciding formally on eligibility (based on EU rules) before approving projects (although The main difficulty in relation to IBs in Germany in 2014-20 has been that European this task can be delegated to the Type 1 intermediate bodies). Commission staff argued during the negotiations that local authorities had to be IB for urban development strategies (ERDF regulation 2014-20, Article 7). The key problems from the NRW Other tasks delegated to the city authorities Land perspective were: Apart from project selection, the city authorities are responsible for: • They wanted to simplify administrative procedures, which they saw as depending on • Selecting the areas to be targeted by ISUD, using social indicators which reflect the a reduction in the number of IBs – but there are 60-70 local authorities in NRW, so, if specific problems of these areas; these had been IBs, the streamlined approach would not have been possible. • Drafting and ensuring city-level approval of the ISUD; • Most domestic co-funding for urban development strategies is provided by the Land government. If the local authorities were IBs, they would have the power to decide on • Submitting the draft ISUD and descriptions of related projects/measures to the relevant how Land funding would be used – but under domestic law, local authorities do not have Bezirksregierung for assessment by the regional jury; the power to decide how Land funding should be used – only the regional government • Submitting project funding applications to the relevant Bezirksregierungen (for ERDF/ESF (the Land) can do. funding) and other Land ministries (for any domestic Land co-financing); • Implementing the ISUD. The compromise solution is that the local authorities are taking on some of the IB tasks but not others. In particular, a Land-level committee will select the urban development strategies, but each individual local authority will select projects to be funded within the strategy - although the final Type 1 intermediate bodies –the Land’s regional offices formal decision will be taken by the Land’s five administrative subregions (Bezirksregierungen). The ERDF and ESF managing authorities have delegated significant tasks for the ISUD to two types of intermediate bodies. The first set of bodies is made up of the Land’s five de-concentrated In order to justify this approach to the Commission, the managing authority had to reach a offices in NRW’s regions (Bezirksregierungen), which are formal OP intermediate bodies (also for formal legal agreement with each local authority on the division of labor, and this had to be other components of the ERDF and ESF OPs). In the context of the ISUD, their tasks are as follows: done before the urban development strategies could be developed. This work is seen to have been burdensome and not useful from either a Land or local authority perspective. There remain • Assisting and advising the city authorities to develop the ISUD and related projects and concerns that this approach could mean that the local authorities may be subject to audit visits applications; by the ERDF Audit Authority, the European Commission or the European Court of Auditors. • Taking submissions for the ISUD-applications for assessment by the regional jury; • Taking submissions for specific project applications for those ISUD which have been NRW Land authorities responsible for the ERDF and ESF OPs formally approved by the Inter-ministerial working group; Some key functions are retained by the core authorities in charge of the NRW ERDF and ESF • Taking formal project selection decisions on behalf of the managing authorities for the OPs: ERDF/ESF component of funding, on the basis of the project application documents, • The ERDF OP managing authority is a unit in the Land Ministry for the Economy, Energy, possibly also informed by the funding decisions of the relevant Land ministries; Industry, SMEs and the Craft Sector, while the ESF OP managing authority is a unit in • Undertaking procedures relating to financial commitments, control and payments, on the Land Ministry for Employment, Integration and Social Affairs. behalf of the managing authority. • The ERDF OP certifying authority is a separate unit in the Land Ministry for the Economy, Energy, Industry, SMEs and the Craft Sector, while the ESF OP managing authority is a Type 2 intermediate bodies – city authorities separate unit in the Land Ministry for Employment, Integration and Social Affairs. The second set of intermediate bodies is made up of city authorities. The ERDF Managing Authority • The audit authority for both the ERDF OP and the ESF OP is in the Land Finance Ministry. has signed a formal agreement with each city authority on the division of responsibilities in relation to project selection in the context of the ISUD. Their tasks are as follows: The managing authorities are responsible for: • Selecting areas to be targeted by ISUD, using social indicators which reflect the specific • Core OP management tasks, including OP oversight, monitoring, and evaluation (except problems of these areas; for tasks delegated to intermediate bodies, including via a formal agreement between the ERDF managing authority and each individual city authority); • Drafting and ensuring city-level approval of the ISUD; 100 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - GERMANY (NORDRHEIN-WESTFALEN) 101 • Submitting the draft ISUD and descriptions of related projects/measures to the relevant NRW Land ministries in charge of domestic funding streams Bezirksregierung for assessment by the regional jury; In addition to ERDF/ESF funding, city authorities can apply for co-funding from existing domestic • Naming an entity or individual to be responsible for project selection, and to act as (Land and federal) funding streams (e.g. for social inclusion, environmental improvements, training, intermediate body for project selection tasks (under Article 7 of EU regulation 1301/2013 urban regeneration). In order to access this domestic co-funding, the city authorities must submit and Article 123(6) of EU regulation 1303/2013). formal project applications through the usual channels to the relevant Land ministries, after the ISUD has been approved. The Land ministries decide whether to allocate domestic co-funding, • Selecting the projects for implementing the ISUD (ensuring a non-discriminatory depending on the domestic rules and the availability of Land budgetary resources. approach to project selection, based on the selection criteria set out in the call for the ISUD), subject to the formal approval of the Bezirksregierungen (for ERDF/ESF funding) Support and advice for the local authorities and other Land ministries (for any domestic Land co-financing); In the context of the ESF OP, the ESF managing authority has set up an additional body • Documenting in writing the project selection procedures and results; (alongside the Bezirksregierungen) to advise and support the city authorities in developing the • Submitting project funding applications to the relevant Bezirksregierungen (for ERDF/ESF social dimensions of their strategies and projects. This is the Office for the Socio-spatial-oriented funding) and other Land ministries (for any domestic Land co-financing); Fight against Poverty (Fachstelle für sozialraumorientierte Armutsbekämpfung, FSA) in the NRW • Implementing the ISUD. Employment Project (NRW.ProjektArbeit). Advantages Regional juries The main advantages of this framework are that: Each Bezirksregierung set up a jury, made up of representatives of the Bezirksregierung (as chair); • It ensures that city authorities have the right to develop their own strategies and projects, the Society for innovative employment support (Gesellschaft für innovative Beschäftigungsförderung, drawing on local knowledge, capacities and past experience (an approach which is in any GIB); the NRW Employment Project (NRW.ProjektArbeit); the Coordination Office for Child Poverty case in line with domestic constitutional and administrative arrangements); in the die Rhine Region (Koordinierungsstelle Kinderarmut beim Landschaftsverband Rheinland); the • At the same time, it limits the exposure of city authorities to the administrative burdens Trade Union Congress’s Education Office in NRW (DGB Bildungswerk NRW); the Information associated with EU Fund management and implementation; and Training Centre for Local Authorities at the Ruhr University in Bochum (Informations- und • It fits domestic structures e.g. by ensuring that bodies responsible for formal decisions Qualifizierungszentrum für Kommunen an der RuhrUni Bochum); the Land Office for Nature, the on project selection (Land ministries and Bezirksregierungen) are also responsible, in a Environment and Consumer Protection in NRW (Landesamt für Natur, Umwelt und Verbraucherschutz domestic context, for making formal decisions on the allocation of domestic Land funding; Nordrhein-Westfalen); and the public NRW development bank (NRW.Bank). Each jury assessed the • It allows the Land authorities (which have the relevant experience and capacity for these draft ISUD submitted by the city authorities on the basis of the following criteria: tasks) to retain overall control of the ERDF and ESF OPs in terms of global financial • Evidence of the need for intervention; management, implementation, control, and monitoring. • Quality of the ISUD and its contribution to the goals of the ERDF and ESF OPs; and Institutional challenges • Legal criteria, including basic eligibility conditions for the ERDF and ESF, and a financial plan. There were a number of important challenges in developing this architecture, particularly relating to the question of which entities should act as intermediate bodies and how tasks should be Each jury makes recommendations on the selection of the ISUD to the Land’s Inter-ministerial divided between the intermediate bodies and the managing authorities – in such a way as to Working Group for the Social City (IntermAG). meet the requirements of the European Commission and would also be practical, legally sound and appropriate from the viewpoint of domestic law. The NRW Land interministerial working group (IntermAG) NRW Land was keen to reduce the number of intermediate bodies in 2014-20, with a view to ensuring: On the basis of the recommendations of the regional juries, the NRW Land Inter-ministerial • A stronger strategic focus at OP level, with less fragmentation across delivery bodies Working Group for the Social City (IntermAG) takes formal decisions on the adoption of the with varying goals and priorities; ISUD and makes recommendations on which ISUD-projects should receive Land domestic and • A clearer definition of responsibilities between managing authority and intermediate bodies; ERDF/ESF funding. The city authorities are informed of these results. Although the decision • More transparent and streamlined structures for applicants, with a single intermediate of the IntermAG provides the basis for the use of national and EU funds, in order to draw body now responsible for all phases of particular calls (whereas in the past one down funding for specific projects, the city authorities must submit formal applications to the entity might be responsible for the application phase and a separate entity for the Bezirksregierungen (for ERDF/ESF funding) and other Land ministries (for any domestic Land co- implementation phase); financing). • A consistently high-quality administrative approach across all components of the OP, with all staff being up-to-date in all procedures and technical tasks, which in turn allows more tasks to be delegated from the managing authority to the intermediate bodies. 102 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - FINLAND 103 This endeavor was in line with a statement by former EU Commissioner Hahn, calling for a reduction in the number of intermediate bodies – but contrary to the view of European Commission staff during the OP negotiations that (NRW’s c. 60) city authorities should be intermediate Finland bodies for the ISUD. In the end, the number of intermediate bodies for the NRW ERDF OP has fallen from 108 in 2007-13 to seven major bodies (including the five Bezirksregierungen plus two small bodies in 2014-20). Background Moreover, most domestic co-funding for the ISUD is provided by different funding streams managed by different Land ministries. If the city authorities were intermediate bodies, they would Partnership Agreement need to have the power to make formal decisions on the allocation of this domestic co-funding The Partnership Agreement notes that sustainable urban development in Finland is implemented would be used – but, under domestic law, city authorities do not have the power to decide how on a basis of an ITI-strategy developed by a network of the six largest cities. Additional integrated the Land budget should be used – i.e. only Land authorities can do this. investment strategies based on the needs of regional actors may be developed in the course of the program period. The ITI strategy has three priorities: open innovation platforms, open data In order to justify the two-tier approach adopted for the intermediate bodies to the European and interfaces, and open participation. The Partnership Agreement notes that both ERDF and Commission, the ERDF OP managing authority had to reach a formal legal agreement with each ESF measures are used in the delivery of these priorities. It also notes that ERDF and ESF local authority on the division of labor, and this had to be done before the urban development measures are dealt jointly at the management group of the strategy and that the Intermediate strategies could be developed. This work is seen to have been burdensome and not useful from Bodies of the program work closely in the monitoring of the objectives of the strategy. either a Land or local authority perspective. Moreover, there are concerns that the local authorities could be subject to audit visits by the ERDF OP Audit Authority, the European Commission or the The developers and implementers of the ITI strategy entitled as ‘The Six City Strategy – open European Court of Auditors. and smart services’ (avoimet ja älykkäät palvelut) are the largest cities in Finland, namely: Helsinki, Espoo, Vantaa, Oulu, Tampere, and Turku. The ITI strategy is nationally very significant, as the Challenges in terms of content participating cities represent 30 percent of the total population of Finland. The cities are also centers for Finnish research, development, and innovation activities. The cities share a common A further problem for the ISUD has been the EU requirement that every ISUD must cover two challenge of developing better services, promoting competitiveness as well as open and sustainable Thematic Objectives and that these must be selected at the level of the OPs as a whole. The operating models. The primary aim of the strategy is to strengthen Finland’s competitiveness by ERDF managing authority would have preferred to allow greater flexibility to the city authorities using the largest cities as the development and testing environments for new innovations. This (e.g. to select one or another Thematic Objective). The two Thematic Objectives selected in NRW in turn will strengthen competitiveness in Finland as a whole. The resulting new operating models are TO9 Social inclusion and TO6 Environment. The difficulty is that the main issue facing city are then available for use by all cities and municipalities in Finland. authorities in terms of urban development is social exclusion – whereas other funding sources and actors address environmental issues. The indicative allocations in the partnership agreement are set out in the table below. TABLE 15. Monitoring and Evaluation Indicative funding allocations for SUD in Finland Fund Indicative funding Share of the fund Managing authority supervision of the city authorities ERDF 39, 460, 000 5 percent The managing authorities are in charge of core management tasks at the level of the overall OP, Total 39, 460, 000 5 percent including OP oversight, monitoring, and evaluation, including checking the city authority’s project selection procedures and results. The managing authorities have delegated day-to-day project Note: The regions propose the share of ESF for the implementation of the strategy. ESF is not earmarked in advance. monitoring and control tasks to the Bezirksregierungen, whereas the managing authorities focus on quality control, sample project checks, and cases where there are conflicts. Operational Programme Procedures for delegating tasks to the city authorities The theme of the SUD in Finland is “the creation and utilization of the latest information and The ERDF managing authority has signed a formal agreement with each city authority on knowledge” in a way that supports the renewal of the cities. The theme is in line with Priority the division of responsibilities in relation to project selection in the context of the ISUD. This 2 ‘creation and utilization of latest information and knowledge’ of the OP and entails all its agreement states that tasks relating to financial commitments, control and payments will be investment priorities. In addition, the ITI strategy entails ESF measures in line with Priority 3 of undertaken by an Intermediate Body appointed by the Managing Authority. the OP ‘employment and mobility of labor force’, and Priority 4 ‘education, skilled workforce and lifelong learning’. 104 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - FINLAND 105 The strategy will be led by a management group consisting of one representative of each The mission of the ITI strategy is: better services, competitiveness and sustainable cities through participating city. The management group is the highest decision-making body for the strategy, an open approach. The primary aim of the strategy is to strengthen the competitiveness in where project proposals are decided following the preparation undertaken by the steering group. Finland by using the largest cities as the development and testing grounds for new innovations. The steering group is composed of representatives of the cities and funders, as well as other The aim is to create new knowledge, business and jobs. The Finnish ITI strategy was not based experts. The management group selects the implemented ERDF projects through an open and or adapted from a pre-existing strategy. The six cities have been cooperating (mostly lobbying) transparent process (i.e. task of deciding whether the project is appropriate) and the Intermediate also prior to the ITI strategy, but this cooperation was done without a formal strategy in place. Body makes the technical funding decision (i.e. whether it is legal and in line with the programme). Therefore, while the composition of the cities is old, the strategy is new. With respect to ESF projects, projects undergo a normal process, where the Intermediate Body (ELY-center of Häme) performs both of these functions. The regions can decide themselves on The strategy aims to improve the services provided in the cities, improve competitiveness the ESF funding and it is not separately earmarked in the programme. of business and enable a broader involvement in the development activities. In addition, the accessibility of services, impact and productivity are improved through e.g. developing network services. When the objectives are reached, cities can respond to changes of the future and seize Characteristics of the Urban Development Strategy the opportunities. The city services are developed through three key priorities: open innovation The starting point for the ITI was the demand to earmark five percent of Structural Funds platforms; open data and interfaces; and open participation. The development activities pursued for the purposes of sustainable urban development. The process started with the Ministry of under these priorities are underlined by the aim towards a sense of community, openness and Employment and the Economy requesting joint proposals from the city networks concerning accessibility. sustainable urban development. The proposals were developed and submitted by large cities at the same time with their domestic growth agreements.13 The idea behind this joint process The strategy notes that: was to strengthen the links between domestic regional and urban policy and the EU Cohesion • The six cities represent 30 percent of the total population in Finland. policy.14 The Ministry received two proposals, and the ITI strategy for the six largest cities (i.e. Helsinki, Espoo, Vantaa, Oulu, Tampere and Turku) was selected due to its innovativeness as • The six cities are the centers for R&D&I activities. well as its alignment with the OP’s objectives. In practice, the ITI is a ‘small’ tool which is used • The use of the six cities as development ground for innovations reinforces Finland’s (amongst all the other different tools) to implement the domestic growth agreements. Overall, competitiveness, as they represent large enough area in the global context. the development process was done closely in cooperation with the Ministry and the cities and as such could be described as entailing both bottom-up and top-down approaches. In terms of funding, five percent of ERDF has been earmarked for the strategy, representing around 80 million euros during the implementation of the strategy. In practice, funding is awarded Although the six largest cities have networked in the past, this has been done primarily for lobbying on the basis of projects. The cities need to contribute 33 percent to the project funding. ESF purposes rather than in a formalized manner to pursue economic development activities. The funding is decided independently by the regions and is not earmarked in advance. This funding is ITI development process enabled the six cities for the first time to try to understand what they decided at the time the regional management committees in the regions meet. With respect to can do together, and a decision was made on the three different themes (i.e. open data, open the different themes, the funding is divided as follows: open innovation platforms (c 4.5 million innovation platforms, open participation). The ITI has been a tool for the cities to become more euros); open data (c. 4.5 million euros); and open participation (c. 1.5 million euros with most involved in development activities (due to the earmarking and the delegation of responsibilities funding coming from ESF). Funding for the 6AIKA office, which is responsible for the operative to the cities). delivery of the strategy, represents a total of 750,000 euros per annum. This is implemented as an ERDF project during May 16, 2014-April 30, 2017. The European Commission has been interested and somewhat cautious concerning the approach of linking six cities into a single ITI (rather than ITI being led by a single city). The Commission has pointed out that the strategy has not necessarily clearly addressed the joint challenges Institutional Framework that these six cities have. The view in Finland is that the six cities have their specific challenges, but that overall the cities have also similarities and as such there is potential to deliver the ITI The institutional structure is formalized in a Ministerial decision which is a brief document strategy together. Finland has for long time adopted an approach, which is based on potentials outlining how the Article 7 is implemented in Finland. The Commission had also provided guidance rather than explicitly addressing specific problems. Discussions with the Commission have also regarding the procedures for the supervision (in terms of contracts, etc.), but this was viewed to been held concerning the different themes promoted by Article 7, and specifically on whether all have been done too late, as the institutional structures were already in place. themes need to be covered or whether focusing on some of the themes would be sufficient. The ITI strategy is led by a management group, which has one representative from each participating city (directors in charge of economic or innovation issues or urban development). The management group, which has been voluntarily set up by the cities, is the highest decision-making 13 Growth Agreements are letters of intent, in which the state and 12 largest cities agree on the key priorities for strategic development. body in the delivery of the strategy. The project proposals are presented to the management group 14 Kestävää kasvua ja työtä 2014-2020, Suomen rakennerahasto-ohjelma, January 23, 2014 106 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - FINLAND 107 following their preparation by the steering group. The management group is also responsible for of the management group and steering of the steering group. The Six City strategy office will be the coordination and monitoring of the strategy together with the Intermediate Body (i.e. regional implemented as an ERDF project. The Six City strategy office is responsible for18: council and ELY-center). The responsibilities of the management group include:15 • Ensuring that the implementation and cooperation of the strategy and the projects • Decision on objectives and budgets; progresses according to agreement; • Naming of the representatives of the steering group; • Acting as the promoter for project idea generation, project preparation and cooperation; • Decision on the specific selection criteria for projects; • Project calls and evaluation processes together with the steering group; • Decision on the content of project calls; • Acting as the content expert; • Decision on the order of priority for the ERDF projects, and their presentation to the • Supporting city-specific coordination; Helsinki-Uusimaa region; • Supporting the implementation and administration of projects, the adoption and • Opinion on ESF projects which have been proposed by the funder (e.g. ELY Centre in dissemination of results (e.g. tools and practices); Häme) and their presentation to the Helsinki-Uusimaa region; and • Building and maintaining national and international networks; • Monitoring of the implementation of the strategy and the projects. • Developing and monitoring the indicators of the strategy and reporting of results; • Monitoring the implementation of funding; The steering group, which is responsible for the implementation of the strategy, includes representatives of the cities, experts and representatives of the Ministry of Employment and the • Reporting of the Six City office project as well as the payments to project partners; Economy and Helsinki-Uusimaa region. The steering group scores the projects in accordance with • The Six City strategy joint communication and supporting the communication of the the selection criteria of OP and the call. The steering group proposes projects to the management projects; group for decision-making, which needs to be done unanimously. After this the project proposals • Implementing the joint workshops and events of the strategy; and are submitted to the Helsinki-Uusimaa region, which is responsible for making the technical • Preparing for the meetings and acting as the contact person for the funders and the funding decision on the basis of the decision of the management group.16 Ministry of Employment and the Economy. With respect to ESF projects, projects are processed in accordance with the normal project Within the individual cities, the ITI activities are coordinated between the representative of procedures where the Intermediate Body takes all decisions (i.e. ELY-center in Häme). In the case the management group, steering group and the coordinator for the Six City office. Each city is of ESF, the management group simply recommends which projects to fund, but the ELY-center in responsible for organizing the activities in accordance to their specific organizational models.19 Häme takes the final decision (which can differ from the recommendation of the management group). ERDF and ESF activities are, however, dealt with together in the management group of The programs are delivered by public servants. In the context of ERDF, the existing Intermediate the ITI and the funders of the OP also work together with respect to the monitoring of the ITI’s Body, namely Helsinki-Uusimaa region is responsible for making the technical funding decision objectives. (The regions in their individual regional management committees make proposals on the basis of the decision of the management group. With respect to ESF projects, projects on the ESF funding for the implementation of the ITI strategy, as unlike ERDF, ESF is not are processed in accordance with the normal project procedures where the Intermediate Body earmarked).17 The steering group is responsible for: takes all decisions (i.e. ELY-center in Häme). Hence, in the case of ESF, the IB has a much more independent role in the decision-making process. • Preparing issues for the management group and implementing their decisions; • Dealing with project call and evaluation processes; The division of roles is viewed to be clearly set out, with the cities having the key responsibility • Monitoring the implementation of projects on the basis of reports delivered by the concerning the substance and Intermediate Bodies concerning the eligibility and alignment with projects; the OP. By using this structure, the cities are also not overburdened by project administration, whilst being able to decide on projects (at least in the context of ERDF). While in many countries, • Steering the work of Six City -strategy office; and the delegation of responsibilities to the city level has been an issue (coined as delephobia) due • Reporting the implementation of the strategy to the management group. to the lack of competences, this has not been the case in Finland. According to the MA, the regional councils have been positive concerning the delegation of responsibilities to the city The Six City strategy office is responsible for the operational aspects, namely by supporting level. In addition, the cities have experience in development, as well as necessary capacities and the management and implementation of the strategy. It is the key node for the strategy, which knowledge. ensures that the strategy’s national implementation progresses in accordance with the decisions 15 6Aika – Avoimet ja älykkäät palvelut – strategia, June 9, 2014 16 Ibid 18 6Aika – Avoimet ja älykkäät palvelut – strategia, June 9, 2014 17 Kestävää kasvua ja työtä 2014-2020, Suomen rakennerahasto-ohjelma, January 23, 2014 19 6Aika – Avoimet ja älykkäät palvelut – strategia, June 9. 2014 108 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ENGLAND 109 When the institutional structure was developed, there were times when cooperation was not optimal, as at times cities tended to compete rather than cooperate together. However, key people pushing the project further helped in getting the institutional architecture in place. England Discussions were held concerning the IB status. A decision was made to make Helsinki-Uusimaa region the IB for the strategy, as it was already an existing IB in the Structural Funds context and this way the cities would not have to deal with all the project implementation aspects. Background Monitoring and evaluation Partnership Agreement Each project can decide its own governance model. The key applicant is responsible for administering the project in accordance with the funding guidance of ERDF or ESF. Responsibility England has significant variation in terms of regional socioeconomic indicators such as GDP and tasks with respect to the content can be agreed during the planning phase of the project. per capita, expenditure on R&D and levels of deprivation. The PA recognizes this variation and The ITI management group is responsible for monitoring and evaluating the implementation of all Thematic Objectives (TOs) with the exception of TO11 (Enhancing institutional capacity) will the project as part of the monitoring of the ITI strategy as a whole. A set of specific indicators receive ESIF support. The ERDF will support TOs 1-7 and also TO 9 (Promoting social inclusion). has been developed (see the table below). More generally, the same rules and guidance apply to ITI projects as to other ERDF or ESF funded projects. The only key difference is related to The UK Government - particularly the Department for Communities and Local Government the decision-making process and that the cities can themselves define their partners, project (DCLG), the MA for the England ERDF OP – has been keen to prioritize the role of local level actors content and choose their project implementers. Projects are implemented in phases, so that the in the delivery of integrated funds for SUD. This is seen as the best means of ensuring integrated solutions resulting from these projects can be taken into wider production. All projects will include interventions in order to address the complexity of needs. Central to ensuring the integrated use actors from at least two participating cities. The different solutions that have been viewed as of ESI Funds are the Local Enterprise Partnerships (LEPs): ‘partnerships between local businesses successful can then be copied in other cities. Good practices can be further developed after the and local government and other key players such as universities, the voluntary and community pilot phase with the help of ERDF.20 sector and social and environmental partners, to take a strategic view on how best to deliver TABLE 16. growth and jobs in their economic areas’ (OP, p.5). Each Core City LEP must develop its own Indicators for the Finnish ITI Six Cities Strategies Sustainable Urban Development Strategy (as per Art. 7 of the ERDF Regulation) before it can implement an ITI. Priority Indicators Open innovation platforms ESI Funds supporting SUD will be delivered through ITIs in the core cities, in accordance with their Open Innovation platforms The number of practical pilots, the number of users of the pilots, the number of participating firms and the amount of R&D&I investments, the number of research Sustainable Urban Development Strategies.21 It has already been determined that ITI delivering projects and their size. SUD will be delivered in London and the eight core cities (Birmingham, Bristol, Leeds, Liverpool, Innovative procurement The number of ideas and challenges, the number of participating firms, the number Nottingham Manchester, Newcastle, Sheffield). The main principle underlying spatial targeting is of prototypes Open data and interfaces that functional economic areas, rather than historically fixed administrative boundaries, should Open data in the six cities The amount of open data, the firms using open data, new applications, solutions in be considered. This aligns with the prominent role of the LEPs, each of which covers a functional different cities economic area. Urban authorities responsible for urban areas with a population in excess of Snapshot of mobility in Firms implementing and utilizing the snapshot, new solutions resulting from the cities service, flow of traffic and the environmental implications 600,000 are eligible, i.e. all the English core cities. Open participation Multi-channeled municipal Number of firms developing services, the number of firms and other actors There are no other fixed criteria for identifying the urban areas where integrated actions for SUD services (and their user-led participating in the service design challenges, the number of under 29-year-olds and are to be implemented. Each Sustainable Urban Development Strategy must include a “robust development) over 54 year-olds reached through the services, reaching specific target groups, such as immigrants. territorial and demographic analysis setting out a Strengths Weaknesses Opportunities and Threats analysis of the urban area/city region” which will highlight urban areas with particular The strategy development phase was based predominantly on partnerships with the cities development needs (OP, p.246). leading the process but also inviting participation from the central level. During the preparation process, a decision was made (in accordance with the Article 7) that the cities would have the The maximum amount available to the Core City Regions for SUD is outlined in the table below. decision-making responsibility concerning which projects would receive funding (this is done in London will also carry out integrated actions for sustainable urban development and so contribute the management group), while the MA is involved in the steering group. The Ministry does not only monitor progress as part of its participation at the steering group but also provides help in towards the 5% included in the ERDF Regulation. London’s contribution will be 204,893,693 terms of strengthening and bringing the national perspective into the discussions. Should there million euros. be any major changes to the strategy, this would require approval by the Ministry of Employment and the Economy. 21 AlthoughCLLD will be delivered in urban areas, it will not contribute to SUD. CLLD will only be used in areas with 10,000- 150,000 inhabitants (with some exceptions possible) whereas SUD will be delivered in core city urban areas of <600,000 20 6Aika – Avoimet ja älykkäät palvelut – strategia, June 9, 2014 people. 110 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ENGLAND 111 TABLE 17. Operational Programmes • Assess and approve Sustainable Urban Development Strategies prepared by designated Allocation to SUD in England Urban Authorities; ITIs will not be delivered through a dedicated Core City Maximum Eligible SUD Priority Axis in England, but through individual • Assess the competence and capacity of the designated Urban Authorities to implement Birmingham €12,730,670 Sustainable Urban Development Strategies in delegated tasks and monitor this for the duration of the delegation; Bristol €3,334,501 each of the relevant cities. Each Sustainable • Agree in writing the terms of the Integrated Territorial Investment and Sustainable Leeds €19,855,174 Urban Development Strategy is an individual Urban Development delegation with each designated Urban Authority; strategic framework tailored to the urban area Liverpool €12,847,466 • Undertake all tasks not delegated to the designated Urban Authorities. in question, though it must link to the Priority Manchester €22,191,077 Axes and TOs in the Operational Programme. Urban Authorities in the English Core Cities (Birmingham, Bristol, Leeds, Liverpool, Nottingham Newcastle €15,884,139 Characteristics are as follows (Draft OP, p.246): Manchester, Newcastle, Sheffield) were established as IBs and are responsible for the selection Nottingham €12,146,695 of operations. London will also be designated as an IB with a broader range of tasks delegated in Sheffield €10,511,768 line with Article 123 (7) reflecting its relative size and existing Intermediate Body status. Source: England-EU Partnership Agreement The indicative amount of the European Regional Development Fund support for sustainable urban A robust territorial and demographic analysis setting out a strengths weaknesses opportunities development integrated actions is set out in the table below. ITI supporting SUD in England will be and threats analysis of the urban area/city region; funded by the ERDF only. However, SUD Strategies must “describe how proposed activity will be complemented by European Social Fund provision where appropriate” (England ERDF OP, p.258). • A clear rationale setting out how the contributes added value to the longer- term vision of the local European Structural and Investment Funds strategy and the Operational TABLE 18. Programme; ERDF allocations for SUD in England • Interlinked actions aimed at securing a lasting improvement in the economic, Fund Indicative amount of the European Regional Development Share of environmental, climate, social and demographic conditions of the urban area concerned. Fund support for sustainable urban integrated actions allocation The strategies must combine a minimum of two thematic objectives and describe Total European Regional 314,395,183 8.67% Development Fund how proposed activity will be complemented by European Social Fund provision where Total European Social Fund appropriate and other major investments envisaged over the lifetime of the program within urban areas concerned. TOTAL ERDF and ESF 314,395,183 • How this will be organized, including the identification of the responsible lead authority, together with a clear description of Governance arrangements and how the wider Local Domestic City Deals Enterprise Partnership area partnerships will be involved in the implementation of the The design and implementation of SUD has taken place against the background of emerging strategy. City Deals. City Deals are “bespoke packages of funding and decision-making powers”.22 The • Description of the Investment Priorities, specific objectives, outputs and results to be purpose of this approach was to facilitate place-based economic development, taking into account endogenous growth factors and to underpin the UK Government’s devolution agenda.23 achieved by the integrated actions proposed. Regarding the latter, City Deals were to allow local areas to: The Core Cities’ strategies for integrated urban actions support the following TOs: 1 (Strengthening • Take charge and responsibility of decisions that affect their area; RTDI), 3 (SME competitiveness), 4 (low carbon economy), 5 (climate change adaptation) and 6 (environment and resource efficiency). Each Sustainable Urban Development Strategy has its • Do what they think is best to help businesses grow; own mix of specific objectives. There are no fixed criteria for identifying the urban areas where • Create economic growth; and integrated actions for SUD are to be implemented. Each Sustainable Urban Development Strategy • Decide how public money should be spent (HM Government 2013). must include a “robust territorial and demographic analysis setting out a Strengths Weaknesses Opportunities and Threats analysis of the urban area/city region” which will highlight urban The City Deals approach offers an innovative approach to establish a program of operations areas with particular development needs (England ERDF OP, p.258). Each SUD Strategy must tailored to the needs of the urban areas whilst aligned to national urban and economic policy include a description of Governance arrangements. objectives. In Scotland the City Deal approach has been adopted slightly differently with a stronger focus on inter jurisdictional partnerships involving multiple municipalities as well as DCLG is the MA and the Certifying Authority for the England ERDF OP. The Audit Authority contributions from the Scottish Government.24 function is undertaken by a cross-departmental Internal Audit Service, jointly hosted by DCLG, the Department for Business Innovation and Skills (BIS), the Department for Education, the 22 Ward M (2017) City deals briefing paper, no. 7158, House of Commons Library Department for Transport and Her Majesty’s Treasury. 23 Atterton J (2017) Place Based Policy Approaches and Rural Scotland. SRUC Edinburgh. Available via: https://www.sruc.ac.uk/ downloads/file/3605/place-based_policy_approaches_and_rural_scotland. Accessed March 29, 2018 According to the England ERDF OP, the MA (DCLG) has the following management responsibilities 24 Van der Zwet, A. Clark, J. Dempsey, D. Mammath, S. and Pautz, H. (expected 2019) Multilevel Deal Making: Challenges and opportunities for Scottish City Regions, Armondi, S and de Gregorio-Hurtado, S. (eds) Foregrounding the Urban Agendas In (p.258) in relation to SUD: European Policy Making, Springer 112 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS CASE STUDIES - ENGLAND 113 Institutional framework being used by the UAs, because they already have the capacity and experience to draft their SUD Strategies. Also, no financial allocation has been made either from ESI Funds or national sources For the eight Core Cities, the MA (DCLG) has delegated responsibility for project selection (project to support the use of consultants. selection only at this stage) to the UAs. These ‘Urban Authorities’ themselves are not one discrete organization. One challenge was and has been agreeing the delivery arrangements with the Commission, who wanted DCLG to better clarify the division of responsibilities between the MA and the Local The delivery of SUD in England is based heavily on the idea of supporting functional economic ESI Funds Committees during OP programming. Therefore, the OP now explicitly clarifies that areas, i.e. the LEP partnership territories. Each city region, in which SUD will be delivered, falls the Local ESI Funds Committees ‘will not be responsible for any tasks set out in EU regulations within a LEP-led functional economic areas. The LEPs will be heavily involved in ESI Funds delivery for which Managing Authorities are responsible in relation to management of the ESI Funds’ over 2014-2020. (England ERDF OP, p.267), so as to avoid any confusion about overlap in responsibilities. Another challenge is that of risk management given that these arrangements are new and untested. In Further to this, each LEP has been required to set up a Local ESI Funds Committee ‘chaired by a the future a potential challenge is the changing situation with regard to the devolution of power local partner who, along with other members drawn from business, public, environment, voluntary to cities under the City Deal agreements. and civil society sectors, will be advocates for the opportunities and impact of the ESI Funds’ (England ERDF OP, p.267). These Local ESI Funds Committees operate under and report directly to the England ERDF OP Monitoring Committee, known as the Growth Programme Board. They Monitoring and evaluation are in essence the main link between the Growth Programme Board at national (i.e. England) For the eight Core Cities, the project selection function is the main function they have been level and the LEPs involved in local delivery, and their main function is project monitoring and assigned at this point in time. DCLG is currently conducting a review of this with a view to reporting. expanding these functions in the future, depending in part on how the devolution of powers to City Regions progresses. However, the LEPS themselves (and by extension the Local ESIF Committees) are not constituted legal bodies. So, the LEPs themselves could not be legally designated as IBs for the Cohesion With regard to the Greater London Authority, the OP states only that it will have “a wide range Policy (and, by extension, the ITI) delivery. Therefore, the UAs are in practice made up of members of tasks delegated to it” (p.268). of the relevant Unitary Authorities (i.e. the City or Borough Councils) with individuals from the LEP-based Local ESIF Committees also present. The composition of these UAs differs between The main link between the MA and the UAs is provided by the Growth Program Board connection each of the eight core cities, not least because the LEP areas don’t necessarily coincide with the to the Local ESI Funds Committees, which as mentioned are the main organizations responsible boundaries of the metropolitan boroughs. For example, the D2N2 LEP covers Derby, Derbyshire, for ‘connecting’ the City-level activities to DCLG. However, the MA is explicitly aiming not to Nottingham and Nottinghamshire, i.e. two cities. ‘supervise’ the UAs; DCLG’s main focus is on overseeing compliance, not on micro-managing projects, though it will of course directly intervene if/where there are errors or difficulties. London is different. The Greater London Authority – a strategic regional authority with devolved powers over economic development – is the designated IB and has extended responsibilities for One of the key challenges of these organizational arrangements is the fact that they are new SUD over and above project selection. and untested. The novelty of the planned approach creates risk, and the MA perceives much ambiguity in the guidelines and provisions governing the use of ITI for SUD. The decentralization Since the unitary authorities (i.e. City councils) are central to the makeup of the UAs, payroll of responsibility to the IBs means greater challenges in coordination across the nine cities public servants have the main role in delivery, supported by the (mostly voluntary) members because they will progress at different rates. The Growth Program Board will be key to monitoring of the LEPs. The GLA is made up of salaried public servants. All of the UAs – because of the progress. central involvement of City Councils – have extensive experience in developing economic and spatial growth strategies for their respective cities over the years. The SUD Strategies currently in development will draw heavily upon and align with pre-existing growth, development and infrastructure plans. Although the LEPs themselves are newly formed, many LEP members were previously involved in the Regional Development Agencies before they were abolished in 2012 so they are also considered to be experienced. The main advantage of the England approach is that UA members are very familiar with the needs of the urban areas which receive SUD interventions. There is also some top-down support; there is a cross-Whitehall team on Cities and Local Growth with representation from BIS and DCLG. Also, the integration of actions (i.e. ITI supporting multiple Thematic Objectives) is likely to be better because of the range of actors which make up the UAs. External consultants are not ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 117 There are several organizational models and tools, used by EU countries to respond to interjurisdictional needs. Figure 24 below outlines all these organizational models and how extensively they were used by each EU country. Romania used three major tools: 1) dedicated axis for SUD; 2) ITI for a non-SUD area; and 3) CLLD. In the following paragraphs we discuss these three models. FIGURE 24. Organizational models for interjurisdictional agreement in EU countries Source: European Parliament. 2019. Integrated Territorial Investments as an effective tool of the Cohesion Policy. [In-depth analysis requested by the CONT Committee.] Dedicated axis for SUD Romania decided to implement the SUD for the 2014-2020 Programming Period through a dedicated axis – Priority Axis 4 of the Regional Operational Programme. The beneficiaries are 118 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 119 39 urban areas – all county capital, with the exception of Tulcea, which has access to dedicated Total Total 50% funds through the Danube Delta ITI. A total of around 1.3 billion Euro was pre-allocated to these Regional Regional I. Regional Population Weighted II. Allocation allocation County dp population per county 39 urban areas. The table below, includes the preliminary allocations by urban area. Region Residence Allocation Allocation Allocation July 2013 Population (million residence (million (million (million euros) (no. ppl.) (%) euros) (million euros) euros) euros) TABLE 19. Allocation of SUD funds by urban area in Romania ARAD 18.7962 180,579 26.70% 20.0744 38.8706 Total DEVA 18.7963 71,296 10.55% 7.9321 26.7284 Total 50% West II. Allocation allocation Regional Regional I. Regional Population Weighted REȘIȚA 150.37 75.185 18.7963 90,824 13.43% 10.0973 28.8936 County dp population per county Region Allocation Allocation Allocation July 2013 Population Residence (million residence (million (million (million euros) (no. ppl.) (%) TIMIȘOARA 18.7962 333,545 49.32% 37.0812 55.8774 euros) (million euros) euros) euros) Total West 75.1850 676,244 100.00% 75.1850 150.3700 BACĂU 18.6416 195,022 19.880% 22.2358 40.8774 BAIA MARE 15.2567 149,330 15.32% 13.9415 29.1982 BOTOȘANI 18.6416 124,143 12.650% 14.1490 32.7906 BISTRIȚA 15.2567 92,280 9.41% 8.6139 23.8706 IAȘI 18.6417 348,303 35.500% 39.7067 58.3484 North - CLUJ East PIATRA 15.2567 320,561 32.70% 29.9336 45.1903 223.700 111.850 18.6417 117,219 11.950% 13.3661 32.0078 North - NAPOCA NEAMȚ West 183.08 91.54 ORADEA 15.2567 223,731 22.82% 20.8894 36.1461 VASLUI 18.6417 79,847 8.140% 9.1046 27.7463 SUCEAVA 18.6417 116,569 11.880% 13.2878 31.9295 SATU MARE 15.2567 124,465 12.70% 11.6256 26.8823 Total North - East 111.8500 981,103 100.000% 111.8500 223.7000 ZALĂU 15.2567 70,001 7.14% 6.5360 21.7927 BRĂILA 18.9850 216,348 20.080% 19.0609 38.0459 Total North - West 91.5400 980,368 100.00% 91.5400 183.0800 BUZĂU 18.9850 138,201 12.820% 12.1694 31.1544 ALBA IULIA 14.7133 73,522 9.24% 8.1571 22.8704 South - CONSTANȚA 18.9850 320,477 29.730% 28.2212 47.2062 BRAȘOV 14.7133 292,071 36.72% 32.4164 47.1297 East 189.850 94.925 FOCȘANI 18.9850 95,674 8.880% 8.4294 27.4144 MIERCUREA- 14.7134 42,543 5.35% 4.7230 19.4364 GALAȚI 18.9850 307,113 28.490% 27.0441 46.0291 CIUC Center Total South - East 94.9250 1,077,813 100.000% 94.9250 189.8500 SFÂNTU 176.56 88.28 14.7134 65,743 8.20% 7.2919 22.0053 GHEORGHE ALEXANDRIA 14.3636 53,170 6.940% 6.9778 21.3414 SIBIU 14.7133 169,594 21.32% 18.8213 33.5346 CĂLĂRAȘI 14.3636 78,777 10.290% 10.3461 24.7097 TÂRGU GIURGIU 14.3636 70,532 9.210% 9.2602 23.6238 14.7133 151,977 19.11% 16.8703 31.5836 MUREȘ South - PITEȘTI 14.3635 178,135 23.260% 23.3868 37.7503 Muntenia 201.09 100.545 Total Center 88.2800 795,450 100.00% 88.2800 176.5600 PLOIEȘTI 14.3635 236,304 30.860% 31.0282 45.3917 Total Allocation for SLOBOZIA 14.3636 53,676 7.010% 7.0482 21.4118 1,277.580 638.790 638.7900 638.7900 1,277.5800 Priority Axe 4 TÂRGOVIȘTE 14.3636 95,203 12.430% 12.4977 26.8613 Source: inforegio.ro Total South Muntenia 100.5450 765,797 100.000% 100.5450 201.0900 CRAIOVA 15.2930 308,546 42.66% 32.6200 47.9130 To access these pre-allocated funds under Axis 4 of the ROP, the local administrations had to prepare Integrated Urban Development Strategies and Mobility Plans, and to identify a list DROBETA- TURNU 15.2930 112,008 15.48% 11.8368 27.1298 of priority projects to be financed. The seven growth poles (Brașov, Cluj-Napoca, Constanța, South SEVERIN Craiova, Iași, Ploiești, and Timișoara) had to focus on the strategy and mobility plan within West the metropolitan area – in continuation of the ‘growth pole approach’ used for the 2007-2013 RÂMNICU Oltenia 152.93 76.465 15.2930 119,363 16.50% 12.6166 27.9096 VÂLCEA Programming Period. The other local administrations had the option to prepare the strategy for SLATINA 15.2930 85,619 11.84% 9.0535 24.3465 the territory of an existent metropolitan area, or for a functional urban area (if they did not have TÂRGU JIU 15.2930 97,802 13.52% 10.3381 25.6311 a metropolitan area established). The figure below indicates the active metropolitan areas, and the functional urban areas proposed by the World Bank (and used by the Managing Authority for Total South - West 76.4650 723,338 100.00% 76.4650 152.9300 the Regional Operational Programme) with an OECD-EC methodology. Oltenia 120 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 121 FIGURE 25. Existent metropolitan areas and proposed functional urban areas of county capitals in Romania Source: The World Bank 122 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 123 In 2018, an additional axis was introduced in the ROP 2014-2020, Priority Axis 13, which provides While in practice, local administrations had the option of developing interjurisdictional projects, financing, on a competitive basis, to urban areas with less than 100,000 people, which are not suburban localities were not included among the list of potential beneficiaries, and funds were eligible for funding under Axis 4. The allocated budget for this axis is 200 million euros, with pre-allocated only for the core city. There were thus no incentives to undertake cross-jurisdictional eligible activities including: 1) improving social, educational, and cultural-recreational services interventions at this level25. Moreover, available pre-allocated funds were relatively low (compared (e.g. the construction / extension / finalization / modernization / rehabilitation / equipment of to allocations to growth poles and urban areas in other EU countries) as detailed in the table above. social centers, social canteens, social housing, educational infrastructure, cultural-recreational facilities); 2) improving urban spaces (construction / extension / modernization / rehabilitation With respect to the types of projects that could be financed with the pre-allocated funds under of public roads, pedestrian areas, green areas, parks, public spaces, squares, video surveillance Axis 4 of the ROP, the 39 urban areas had a limited menu to choose from (see table below). These systems, public lighting systems, water and wastewater systems, Wi-Fi systems, urban furniture, eligible activities obviously do not respond to the varied palette of needs Romanian cities have, small parking areas, demolishing of buildings that are not national patrimony). Interestingly, and they are applied in a cookie-cutter fashion, regardless of the differing needs of the 39 urban smaller urban areas have access to a wider menu of funding options (being more suited to their areas. Typically, the needs of a city with 35,000 people are quite different from the needs of an real needs) under Axis 13, than larger urban areas have under Axis 4. urban area with 500,000 people. TABLE 20. Non-SUD ITI Investment priorities covered under Axis 4 of the ROP The Integrated Territorial Investments (ITI) tool allowed Romania, as any other EU Member Investment priority State, to bundle funding from several priority axes of one or more Operational Programmes Thematic Objective (in accordance with Eligible Activities (OPs), to ensure the implementation of an integrated strategy for a specific territory. The ERDF rules) key elements of an ITI program are: (a) a designated territory (functional area); (b) a related TO 4 – Supporting the shift Measures for reducing CO2 emissions in urban areas (bike integrated territorial development strategy; (c) a package of prioritized actions (projects) IP (e) – Sustainable urban towards a low-carbon economy paths, acquisition of ecological/electrical public transport in all sectors mobility vehicles, etc.). to be implemented (an investment plan); and (d) governance arrangements to manage the implementation of the ITI program. TO 6 – Preserving and protecting IP 6 (e) – Urban the environment and promoting Rehabilitation of brownfield sites. resource efficiency regeneration FIGURE 26. Danube Delta ITI area IP 9 (b) – Integrated Integrated measures for marginalized communities, through: TO 9 - Promoting social approaches for facilities for educational, cultural, and recreational purposes; inclusion, combating poverty and marginalized rehabilitation of small green areas, public spaces, squares; any discrimination communities small urban streets and utilities networks. TO – 10 Investing in education, IP 10 – Investments in Educational infrastructure (nurseries, kindergartens, training and vocational training education technological schools, professional schools). for skills and lifelong learning The bulk of the funding under Axis 4 is for Sustainable Urban Mobility measures, and this is the topic that most eligible urban areas have focused on – particularly the acquisition of ecological/ electrical buses and/or trams, and the development sustainable transport infrastructure (dedicated bus routes, bike paths, and pedestrian areas). In terms of institutional set-up, two new types of entities are involved in the management of Axis 4 funds - the Urban Development Support Structure (UDSS) and the Urban Authority (UA). The UDSS has extended the responsibilities of the Growth Pole Coordinator Office (established to provide support to growth poles for the 2007-2013 Programming Period) to all eligible urban areas within the respective region. The UDSS sits under the Regional Development Agency, which is the Intermediary Body for the management of ROP funds in Romania.26 The UAs were created within each of the 39 eligible county capitals, with the task of identifying the priority projects to be financed under Axis 4 of the ROP. 25 Growth poles 2007- 2013 were pre-allocated circa 90 and 100 million euros. 26 A more detailed account on the role and responsibilities of regional development agen- cies in Romania is available here: http://documents.worldbank.org/curated/en/153401468094485248/ Managing-authority-and-intermediate-bodies-collaboration-and-communication-full-report Source: Danube Delta ITI Strategy 124 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 125 The Romanian Government decided to use the ITI tool for the Danube Delta Area, and allocated OP / Priority Axes 1.3 billion euros to the ITI from various Operational Programmes (see Annex 3 for OPs and Fund sums allocated), and for a varied array of interventions. The Romania-EU Partnership Agreement, Regional Operational Programme (ROP) in Chapter 3, describes the proposed ITI approach in Romania. In order to access ITI funding, an Integrated strategy for sustainable development of the Danube Delta and the implementation through Competitiveness OP integrated territorial investments, was prepared. The strategy was elaborated by the Ministry PA 1 - Research, technological development and innovation (RDI) in support of economic of Regional Development and Public Administration with EU funding (from the OP Technical competitiveness and business development ERDF Assistance 2007-2013) and with help from the World Bank. PA 2 - Information and Communication Technology (ICT) for a competitive digital economy Geographically, the ITI area includes the Danube Delta Biosphere Reserve (DDBR) and the Human Capital OP surrounding areas: the Tulcea municipality, 3 cities (Babadag, Isaccea, and Sulina), 29 communes PA 1 - Youth employment Initiative in Tulcea County, and four communes (Corbu, Istria, Mihai Viteazu and Săcele) within the PA 3 - Jobs for all Constanța County (southeast of Tulcea County and the DDBR). ESF PA 4 - Social inclusion and combating poverty In terms of interventions covered under the Danube Delta ITI, the spectrum is quite varied. The PA 6 - Education and skills table below indicates all the individual OPs, and respective priority axes where dedicated funding Technical Assistance OP has been made available for the ITI. Annex 6 provides a more detailed overview of the interventions PA 1 - Strengthening beneficiaries’ capacity to prepare and implement ESIF funded projects, and possible. As can be seen, the bulk of eligible interventions focus on socio-economic aspects, and not ERDF dissemination of related information necessarily on environmental aspects. Moreover, an area with only 200,000 people has access to National Rural Development Program the same amount of pre-dedicated funding (1.3 billion Euro) and for a much wider array of eligible Measure 4 – Investment in physical assets interventions, as 39 urban areas with a total population of around 8.9 million. Measure 6 – Development of farms and enterprises TABLE 21. OP Axes for which ITI allocations exist for Danube Delta region (2014 – 2020) Measure 7 – Basic services and village renewal in rural areas EAFRD Measure 10- Agri-environment and climate OP / Priority Axes Measure 19 – Supporting LEADER local development (CLLD) Fund Regional Operational Programme (ROP) Fisheries and Maritime Affairs OP PA 2 - Improving small and medium enterprises’ competitiveness Union’s Priority 1 – Promoting sustainable, resource effective, innovating, competitive and knowledge- based fishing PA 3 - Supporting the transition towards a low-carbon economy Union’s Priority 2 – Stimulating sustainable, resource effective, innovating, competitive and knowledge- PA 5 - Improving the urban environment and the sustainable conservation, protection and based aquaculture EMFF capitalization of cultural heritage ERDF Union’s Priority 4 – Increasing employment rate and enhancing territorial cohesion PA 6 - Improving road infrastructure of regional importance Union’s Priority 5 – Stimulating commercialization and processing PA 7- Diversifying local economies through the sustainable development of tourism PA 8 - Health and social infrastructure development The Danube Delta ITI Strategy has identified projects based on the local needs, and formulated PA 10 - Improving educational infrastructure the project portfolio under five pillars, out of which one focuses on the management capacity of Administrative Capacity OP the projects’ implementation. Projects proposed under Pillars I-IV are presented geographically in Annex 5. PA 1 - Effective public administration and legal systems ESF PA 2 - Accessible and transparent administration and legal systems Under Pillar I, “Protect the environment and natural resources” projects have been proposed for better management of natural assets and risks which may have major impact on the Large Infrastructure OP ecosystem, projects organized in five sector areas dealing with (1). Biodiversity and ecosystem PA 2 - Developing a quality, sustainable and efficient multimodal transport system EERDF management; (2). Energy efficiency; (3). Climate changes; (4). Disaster risk management; (5). PA 3 - Developing the environmental infrastructure in terms of efficient resource management CF Pollution emergency. PA 4 - Environmental protection through measures for the conservation of biodiversity, air quality ERDF Under Pillar II, “Improving the economy sector interventions”, projects underline the crucial role of monitoring and decontamination of historically polluted sites PA 5 - Promoting adaptation to climate change, risk prevention and management CF tourism services, agriculture and fishery in the development of the local economy. Projects target (1). Nature based tourism; (2). Fishery and aquaculture; (3). Agriculture and rural development; (4). PA 7 - Promoting clean energy and energy efficiency in order to support a low-carbon economy EFRD Culture based tourism. 126 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS IN ROMANIA 127 Under Pillar III, “Ensuring connectivity”, projects focus on creating an efficient system of transport FIGURE 27. of persons, goods and ideas mentioning (1). Transport; (2). Information and communication The process of LAG formation technology. Under Pillar IV, “Providing public services”, projects have been proposed to increase the quality of live in the ITI project area with attention on (1). Water supply and sanitation and Expression of interest Facilitation and support LAG formation integrated water management; (2). Solid waste management, (3). Health; (4). Education; (5). Inclusion and social protection. Under Pillar V, “Promotion of the efficiency, accessibility and sustainability”, proposed projects aim to increase the capacity for an efficient and sustainable implementation of the Strategy. Local authority Intermediate Bodies – Local authority Projects Public target the administration and program management. (RDAs) – Public institutions To help with the implementation of the Danube Delta ITI Strategy, an Intercommunity development association was set up. The ADI ITI-DD is an association with legal personality – Private sector under private law and with public utility status, established to implement the ITI mechanism in the Danube Delta ITI area. The Intercommunity development association brings together 38 – Civil society Private Sector territorial administrative units (ATU). The ADI-ITI DD in line with the provisions of the operational 1. LAG Staff Civil Society protocol signed by the Ministry of European Funds, the Ministry of Regional Development and – Marginalized Public Administration, and relevant Management Authorities, is tasked to organize, regulate, community finance, monitor, and coordinate, interventions from the Danube Delta ITI Strategy, jointly with Marginalized area – Neighboring the administrative-territorial units that are part of the area. Annex 4 provides the detailed 2. Facilitator Neoghbouring area(s) communities organizational chart of the ADI ITI-DD. CLLD Public institutions Regulation 1303/2013 of the European Parliament and of the European Council, sets out the framework for the implementation of the Community-Led Local Development (CLLD) approach. Source: World Bank. 2014. Elaboration of Integration Strategies for Urban Marginalized Communities The CLLD is meant as an integrated tool, which can be used to respond to complex development issues, requiring the cooperation of several stakeholders from the public, non-governmental and For urban CLLDs the focus is usually on marginalized communities within an urban area, focusing private sector. To access CLLD funding, relevant stakeholders have to form local action groups on the reduction of the risk of poverty and exclusion, particularly among the Roma community. (LAGs), using the same approach used for the LEADER program in the 2007-2013 Programming For rural CLLDs, the focus is usually on interjurisdictional cooperation, as well as cooperation with Period. The process of LAG formation is described in the figure below. private sector representatives and NGOs, to respond to concrete local development challenges. The Ministry of Regional Development and Public Administration indicates that there are The LAG, once formed, has to prepare a CLLD strategy and submit it for eligibility check and final 22 urban LAGs (out of 49 strategies submitted), 239 rural LAGs and 14 FLAGs. Rural LAGs approval to the relevant intermediary bodies and managing authorities. According to Regulation are almost exclusively formed from partnerships between two or more local administrations. 1303/2013, CLLD strategies have to include “a coherent set of operations, the purpose of which Overall, 2821 rural and small urban localities are part of a LAG (see map below), indicating is to meet local objectives and needs, and which contributes to achieving the Union strategy that interjurisdictional cooperation is possible even for local administrations with relatively lower for smart, sustainable and inclusive growth, and which is designed and implemented by a local administrative capacity. action group.” From an institutional point of view, LAGs include three different operational levels: CLLD funding is available for two types of LAGs in Romania: 1) marginalized communities in The General Assembly, comprising all LAG members; urban areas with more than 20,000 inhabitants; 2) rural areas and towns with under 20,000 inhabitants. In the first case, funding is available from the ERDF and the ESF through the ROP The Steering Committee, which is the decision body within the LAG and is elected by the and the OP Human Capital. In the second case, funding is available from European Agricultural General Assembly; and Fund for Rural Development (EAFRD) through the National Rural Development Program. There are also Fisheries Local Action Groups (FLAGs), implementing European Maritime and Fisheries LAG staff, in charge of the daily functioning and operations. Fund (EMFF) projects. 128 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS FIGURE 28. Rural and small-town LAGs in Romania, for 2014-2020 ADVANTAGES AND DISADVANTAGES OF KEY ORGANIZATIONAL MODELS Source: Ministry of Regional Development and Public Administration ADVANTAGES AND DISADVANTAGES OF KEY ORGANIZATIONAL MODELS 131 Urban interjurisdictional agreements can draw on four main types of organizational models: 1) dedicated OPs; 2) dedicated priority axis under an OP; 3) ITIs; 4) CLLDs. The CLLD tool is designed primarily for small scale interventions, not requiring special arrangements or integrated approaches. As such, only the first three organizational models will be discussed here. Dedicated Operational Programme for urban/metropolitan areas Only Italy has used a dedicated urban Operational Programme for multiple urban areas. However, given the scale of urban development challenges in Romania, this may be a valid approach. Some of the advantages of this approach include: • Clear focus on urban areas, rather than on urban areas and regions; • Dedicated pot of money for urban areas; • Possibility of greater thematic diversity; • Possibility of having a more competitive approach, with groups of urban areas having to compete for dedicated funds under priority axes; • Possibility of having dedicated priority axes for large projects of strategic importance for urban/metropolitan areas. • Possibility to clearly link national urban priorities to the Operational Programme. Some of the disadvantages include: • A new OP may take some time to develop and therefore could delay implementation.; • There is less scope to combine funding with what is offered under other OPs; • There will be a reduced funding and scope for the Regional Operational Programme. Dedicated priority axis under an Operational Programme This is the organizational model currently used by Romania, and other countries (e.g. Spain, Hungary). Some of the benefits of this model include: • It is well-known, and an institutional framework is already in place for this type of approach; • It lowers the administrative burden for national authorities; • It is the simplest of all the organizational models. 132 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS Some of the shortcomings include: • It provides less thematic diversity; • It provides the same options for all urban areas, despite varying needs; • It requires significant administrative burdens (e.g. IUDS, Mobility Plans, and Urban Authorities) for relatively small allocations; • It significantly limits the types of interventions that can be undertaken; • It reduces the visibility of urban development initiatives as they are subsumed in a program structure that lacks a clear identity ITIs ITIs have been used extensively by countries like Poland and Czechia, and evidence so far indicates that the tool has been relatively successful. Some of the benefits of ITIs include: RECOMMENDATIONS • Possibility to access funding from all relevant OPs, including ERDF, ESF, CF, and potentially EAFRD; • It allows for a higher level of thematic diversity, better integration of funding sources, and better response to urban needs; • Potential for higher dedicated financing for urban areas; • Increased devolution of responsibilities, creating local ownership; • Decisions are taken much closer to citizens and relative stakeholders; • It provides a strong identity for partnerships and strategies; • It can foster cooperation across administrative boundaries, limiting fragmentation of EU funds, avoiding duplication of investments, and stimulating synergies and scale effects; • Limits competition over EU funds between municipalities targeted by ITI, encouraging information exchange about investment plans, mutual learning, and increasing coordination of EU projects; • Provides stability that facilitates long term planning; • Promotes metropolitan approach to strategic development; • Facilitates administrative capacity building at the local level and increasing the quality of EU projects and investments. Some of the shortcoming of ITIs include: • Difficulty in deciding areas for which to use the ITI, and high competition between areas to secure funding; • Can lead to snowballing and politicization with more authorities attempting to secure ring-fenced funding packages; • Requires adequate local capacity and a higher bureaucratic burden; • May require more time in terms of developing the organizational set up when compared with other organizational models; • May affect absorption, as there is little competition for funds; • Lowers competitive drive and does not adequately rewards high performers. RECOMMENDATIONS 135 Strong metropolitan areas and urban agglomerations are a central ingredient to the performance of Romanian regions and the Romanian economy as a whole. A simple look at EuroStat data reveals that the best performing NUTS2 regions in the EU, both in terms of overall economic output and productivity, are those that have at least one strong and dynamic metropolitan area or urban agglomeration within them27. Hence an economic and territorial development approach with a strong emphasis on urban development in Romania is expected to increase the country’s overall economic productivity, output, and performance. However, administrative regions do not always follow functional area boundaries, thus giving rise to the need for innovative approaches to govern across administrative jurisdictions. In practice, this means that the national government should, through the development of a national urban policy framework, supported by appropriate fiscal and administrative tools, look for various ways of strengthening urban areas. EU funds, in particular those provided through ESIF, are a vital instrument in implementing such developments. Such an approach should follow the rationale of integrated sustainable urban development while recognizing the specific context in which Romania and each of the urban areas in Romania operates. Challenges such as the country’s relative peripheral geographical location are difficult to overcome. The figure below clearly shows that geographical location is one of the key drivers of economic growth, with the most productive NUTS2 regions in the EU being metropolitan regions/urban agglomeration, located in the core of Europe (i.e. at the crossroads of the continent’s major trade routes). Other high performing locations are large metropolitan areas, usually capital cities like Bucharest, Stockholm, or Helsinki. While large urban areas in Romania perform much better than smaller towns or rural areas, they still have a way to go, when it comes to catching up with similar urban areas in Western Europe. For example, they lack basic public infrastructure (e.g. metropolitan road network and public transport system, quality urban amenities and infrastructure) to adequately compete with their western peers. When considering development policy options, governments have to find a way to balance COMPETITIVENESS and EQUITY. A country with strong growth, where a large share of the population and the territory is left behind, will sooner or later learn that such unbalanced growth 27 World Bank. 2018. Rethinking Lagging Regions: Using Cohesion Policy to Deliver on the Potential of Europe’s Regions 136 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 137 is unsustainable. Similarly, a country without growth engines to propel it forward, will not be In order to achieve these ambitions, the SUD approach has to be strengthened along the following able to tackle long-term development challenges. Indicators show that Romania has managed broad four pillars: to both improve competitiveness (it has one of the highest GDP growth rates in Europe, and the world), while also ensuring equity (poverty has been steadily declining). However, few purposeful More RESOURCES measures have been implemented to ensure that competitiveness is sustainable over the More DIVERSITY longterm. For example, over five million Romanians have left the country in recent years (the highest number of a non-conflict country, and second only to Syria, globally), in search of a better More FLEXIBILITY life. A recent World Bank study on migration patterns28 indicates that the relative low quality of life is the major reason why Romanian chose to move – higher in preference than a better pay. More DECENTRALIZATION More concretely, most Romanians want to live in (primarily) cities that are similar to those in the west of Europe. For each of these four pillars, the different options for using organizational models will be discussed. The focus will be squarely on organization models that respond to the needs of urban EU funds are an important lever in terms of addressing some of these challenges. They interjurisdictional agreements (e.g. metropolitan areas). While the Romanian Government may provide a contribution to critical public investment infrastructure in urban areas that will allow decide to focus only on core cities, with the SUD approach, as is the case for the 2014-2020 Romanian cities to achieve sustainable growth goals, increase the quality of life and increase its Programming Period, this option will not be considered here. The key options discussed here include: competitiveness. Thus, for the 2021-2027 Programming Period, it will be critical to develop a 1) Operational Programme for urban/metropolitan areas; 2) ITIs for metropolitan areas and urban SUD approach that is able to more adequately respond to the needs of urban areas. agglomerations; 3) dedicated priority axis under an Operational Programme for urban areas. FIGURE 29. Moreover, organizational models should ideally be tailored to the types of urban areas existent in The most productive NUTS2 regions in the EU Romania right now. Largely, these urban types include: • Bucharest – the capital, and one of the major metropolises in Europe. • Larger urban areas, with more than 200,000 people. • Urban areas with less than 200,000 people. More RESOURCES Similar to other countries Romania’s investment needs far exceed the available resources. The World Bank has prepared a summary table with investments needs by sector in Romania and has estimated the financing gap to be at least 83 billion euros. Determining how to prioritize these extensive needs with limited resources is a process that is involves matching scientific evidence with political choices. If there is an evidence gap – as is often the case in Romania - there is a large risk that political decisions will be taken without a full understanding of the intended and unintended impact of investments. A comprehensive national development strategy can provide a framework for evidence inputs in policy processes while also setting out political priorities. Romania currently does not have a comprehensive National Development Strategy, and no clear vision on the priority sectors for the country. Romania has a high number of sectoral strategies, but no common national development vision. In practice, the country draws on the supranational priorities defined by the European Commission, for the EU as a whole, but interpreting these in terms of national priorities can be challenging. There is a general consensus that without measures that strengthen the private sector, while promoting social inclusion and environmental sustainability, it is difficult to sustain Source: EuroStat long-term growth and development. At the same time, there are important knowledge and policy gaps in relation to urban areas which means that the balance between these different dimensions 28 World Bank. 2017. Magnet Cities: Migration and Commuting in Romania. 138 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 139 are not well understood. For example, the critical role that cities play in a country’s development is largely The allocation of resources for urban areas consists of a number of dimensions which include the ignored in Romania, and it is evidenced by the nearly complete lack of the “urban development dimension” total proportion of EU funds that are allocated for SUD development but also the way in which in political programs, public policy papers, or national investment programs. these resources are targeted. The discussion below will consider both of these dimensions. TABLE 22. Investment Needs by Sector in Romania (in million euros) More RESOURCE ALLOCATION – above six percent of ERDF Investment EU Funds State / Needs (in allocations county / Financing For the 2014-2023 implementation period, the World Bank has estimated that Romania’s 40 Priority sector Loans PPPs million for 2014- local budget Gap county capitals could sustainably undertake capital investments of around six billion euros. The euros) 2023 allocations basic premise of this estimate is that every public investment decision should take operation and Highways € 13,254 € 1,742 € 824 € 2,935 € 1,897 € 5,856 maintenance (O&M) costs into consideration, and investments should not be undertaken if future Express Roads € 10,367 € 586 € 491 € 772 - € 8,518 O&M costs cannot be covered by domestic budgets. Of these six billion euros, urban areas can National Roads € 2,292 € 445 € 73 € 268 - € 1,506 access around 2.7 billion euros (46% of capital investments envelopes) through EU funds in the Bypasses € 332 € 181 € 34 € 117 - €0 2014 – 2023 implementation period – either through the dedicated funds under Priority Axis 4 of the ROP (1.3 billion euros in total), or through a competitive process through other priority axes County Roads € 6,413 € 946 € 1,774 - - € 3,693 under the existent Operational Programmes. Communal Roads € 4,728 € 440 € 3,428 - - € 4,288 Railways € 14,382 € 2,070 € 1,626 - € 810 € 9,876 The 46 % of capital investment envelopes from EU funds represents a relatively large proportion Bucharest Metro € 9,880 € 683 € 200 - - € 8,997 of total EU funding for major urban areas in Romania. However, when the data is disaggregated Port Infrastructure € 3,381 € 619 € 486 - - € 2,276 it becomes clear that large cities, which are critical for the competitiveness of their respective Airport Infrastructure € 1,421 € 552 € 434 - - € 435 regions, receive disproportionately less EU funds. For the 2021-2027 program period, it is important that EU funds are allocated according to actual needs in a way that other EU Multimodal Transport Hubs € 316 € 70 € 55 - - € 191 countries have done. (The case studies of Poland, Italy, or Czechia provide a good example of Water and Wastewater € 23,804 € 3,014 € 2,880 € 1,200 - € 16,710 how resources could be allocated in a more equitable way). Solid Waste Management € 352 € 352 ?       Cadaster € 1,300 € 313 € 600     € 387 For the 2014-2020 Programming Period, EU countries had to allocate at least 5% of ERDF funds Brownfields € 8,500 € 338 € 35     € 8,127 for the SUD approach. Romania has an ERDF allocation of 12.9 billion euros for 2014-2020, Thermal Insulation € 5,300 € 1,187 € 1,006   € 184 € 2,923 which means that it should have allocated at least 0.65 billion euros. It has however allocated District Heating € 1,000 € 250 - - - € 750 11% for the SUD (around 1.3 billion euros), through a dedicated priority axis under the ROP, demonstrating considerable commitment towards the sustainable urban development goals. Tourism Infrastructure € 650 € 119 - - - € 531 Seismic Risk Retrofitting € 180 - - - - € 180 For the 2021-2027 Programming Period, Romania will have a proposed ERDF allocation of around Public / Social Housing € 4,500 € 25 - - - € 4,475 17.3 bln. Euro. Of these, the new Cohesion Policy indicates that at least 6% should be allocated Historic Districts € 1,125 - - - - € 1,125 for the SUD approach. Thus, if Romania were to allocate the minimum 6% of ERDF for SUD, the Social Infrastructure in Rural total sum, would come up to 1.039 billion euros. If 11% of ERDF, as is the case for 2014-2020, Areas (education, health, € 3,705 € 522 € 788 - - € 2,395 will be allocated for SUD, the total sum will come up to 1.905 billion euros. However, in order to sport, cultural) fully support urban areas’ economic growth potential and to achieve a more equitable overall Integrated Investment Plan (including mobility € 5,654 € 500 € 5,154 - ? €0 distribution of funds an increase in allocation to around 15% of ERDF with, the total sum would plan) for Bucharest come up to 2.598 billion euros would be desirable. Integrated Investment Programs (including mobility € 5,977 € 2,746 € 2,890 - € 251 €0 plans) for County Capitals More RESOURCE CONCENTRATION Integrated Investment Programs for the other More resources do not only mean larger allocations, it also involves concentrating those resources € 3,568 € 2,614 € 954 - - €0 Municipalities (63) and in those areas where they have the most impact. Given the large needs and the spread of those towns (217) needs across a large geographical territory, there is an inherent push to spread resources in a Danube Delta ITI € 1,114 € 1,114       €0 balanced way. While this ensures equity across local authorities and as such avoids conflict, it does TOTAL € 133,394 € 19,962 € 22,312 € 5,292 € 3,143 € 83,239 not necessarily respond to actual development dynamics. Development is inherently unbalanced Source: collected from various existing masterplans, strategies, and Operational Programmes. and relies on a relatively small number of economic engines driving growth which benefits other 140 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 141 areas. And, while it is important to ensure that the distance between these economic engines In the table below, the capital investment envelopes for the 2021-2029 period for the current 39 and the rest of the country does not become too large, it is equally important to ensure that (Article 7) SUD beneficiaries are estimated, and for the localities that are part of their functional these economic engines work at their full potential. In short, under investment in areas that can urban areas. Next, the three SUD scenarios discussed above (with 6%, 11%, and 15% of ERDF provide growth can have negative consequences not just for those areas but also for the rest of allocated for SUD) are considered, and SUD funds have been distributed by FUA, according to the the country. size of their capital investment envelopes. Within the particular context Romanian urban areas, in addition to looking at economic output or productivity, it is also important to understand how successful these areas are in terms of TABLE 23. Proposed SUD allocations for 2021-2029 offering a potential alternative to out-migration. In other words, the quality of life together with the economic development needs of urban areas need to form the basis for resource allocation Capital Investment Envelopes Proposed SUD funds allocations decision if Romanian cities are to become competitive and be considered as an alternative to FUA for 2021-2029 for 2021-2029 cities in Western Europe. Core City Outer FUA 6% of ERDF 11% of ERDF 15% of ERDF Alba Iulia € 89,943,358 € 36,158,792 € 13,342,044 € 24,460,413 € 33,355,109 In essence, more resource concentration can ensure that critical investments go to those cities Alexandria € 52,446,111 € 13,990,221 € 7,029,194 € 12,886,855 € 17,572,984 that have the highest potential of acting as “dams” to out-migration. The figure below shows Arad € 263,893,016 € 122,686,174 € 40,901,416 € 74,985,929 € 102,253,539 that the average SUD allocation per urban area in Romania is quite low compared to other EU Bacău € 213,667,568 € 52,582,472 € 28,170,175 € 51,645,321 € 70,425,438 countries. Urban areas like Wroclaw (Poland), Brno (Czech Republic), Gdansk (Poland), or Poznan Baia Mare € 138,228,383 € 59,166,594 € 20,885,071 € 38,289,298 € 52,212,678 (Poland), have SUD allocations of upward of 200 million euros – which is considerably more than Bistrița € 93,514,267 € 37,561,775 € 13,868,299 € 25,425,214 € 34,670,747 the 50 million euros SUD funds that similar Romanian cities, such as Constanța, Brașov, or Botoșani € 92,838,228 € 13,263,307 € 11,225,909 € 20,580,834 € 28,064,774 Cluj-Napoca, have at their disposal. Also, it has to be noted here that the relatively low allocation Brăila € 169,176,837 € 19,477,785 € 19,960,312 € 36,593,905 € 49,900,779 per urban area in more developed EU countries is due both to the relatively small EU funds Brașov € 398,334,589 € 232,660,122 € 66,761,423 € 122,395,943 € 166,903,558 allocations for developed regions (most funding focuses on less-developed regions) and to the Buzău € 156,373,694 € 70,404,268 € 23,993,893 € 43,988,804 € 59,984,732 substantial additional resources developed cities have to their disposal from their own budgets. Călărași € 67,246,490 € 21,737,199 € 9,414,782 € 17,260,434 € 23,536,955 Cluj-Napoca € 475,891,989 € 144,409,773 € 65,630,072 € 120,321,799 € 164,075,181 FIGURE 30. Constanța € 394,015,461 € 307,604,667 € 74,233,837 € 136,095,368 € 185,584,592 Average SUD allocation per urban areas, in EU countries, for 2014-2020 Craiova € 311,010,624 € 88,834,258 € 42,304,972 € 77,559,115 € 105,762,430 Deva € 90,416,832 € 98,213,791 € 19,957,772 € 36,589,249 € 49,894,431 Drobeta-Turnu Severin € 98,774,636 € 23,704,049 € 12,958,669 € 23,757,559 € 32,396,671 Focșani € 91,088,969 € 57,336,586 € 15,703,937 € 28,790,552 € 39,259,843 Galați € 301,514,078 € 60,668,842 € 38,320,206 € 70,253,711 € 95,800,515 Giurgiu € 59,007,416 € 8,847,665 € 7,179,302 € 13,162,054 € 17,948,256 Iași € 332,826,697 € 64,938,480 € 42,084,932 € 77,155,708 € 105,212,329 Miercurea-Ciuc € 54,997,069 € 37,669,456 € 9,804,439 € 17,974,805 € 24,511,097 Oradea € 256,106,200 € 109,913,010 € 38,726,099 € 70,997,847 € 96,815,246 Piatra Neamț € 114,727,703 € 37,676,652 € 16,124,908 € 29,562,331 € 40,312,270 Pitești € 199,099,258 € 207,083,933 € 42,975,587 € 78,788,576 € 107,438,967 Ploiești € 308,172,351 € 234,416,867 € 57,407,816 € 105,247,663 € 143,519,541 Râmnicu Vâlcea € 134,585,494 € 102,170,532 € 25,049,607 € 45,924,279 € 62,624,016 Reșița € 81,817,762 € 5,325,761 € 9,220,086 € 16,903,491 € 23,050,215 Satu Mare € 120,885,150 € 57,911,640 € 18,917,319 € 34,681,751 € 47,293,297 Sfântu Gheorghe € 60,555,334 € 20,108,196 € 8,534,480 € 15,646,548 € 21,336,201 Sibiu € 241,837,912 € 132,160,649 € 39,570,342 € 72,545,626 € 98,925,854 Slatina € 108,849,540 € 34,478,264 € 15,164,577 € 27,801,725 € 37,911,444 Source: Matko, Marton. 2016. Sustainable Urban Development in Cohesion Policy Programmes 2014-2020. [PowerPoint Presentation delivered on February 18, 2016 in Brussels.] Slobozia € 55,166,784 € 24,399,179 € 8,418,354 € 15,433,649 € 21,045,885 Suceava € 140,278,476 € 45,137,837 € 19,617,687 € 35,965,760 € 49,044,218 Târgoviște € 112,071,656 € 63,821,101 € 18,610,062 € 34,118,447 € 46,525,156 More RESOURCES for FUAs Târgu Jiu € 96,124,581 € 42,492,534 € 14,666,170 € 26,887,979 € 36,665,426 SUD funds are primarily designed for urban areas, not just for cities, and as the examples in Târgu Mureș € 209,001,407 € 79,370,703 € 30,510,767 € 55,936,406 € 76,276,917 this report have shown, most countries have used SUD funds for functional urban areas (FUAs), Timișoara € 473,288,443 € 240,240,247 € 75,493,804 € 138,405,307 € 188,734,510 not just for single cities. As such, it is important for Romanian authorities to truly make SUD funds Vaslui € 54,536,763 € 15,106,405 € 7,368,488 € 13,508,895 € 18,421,220 available for FUAs. In practice, this means that suburban and peri-urban localities should become eligible Zalău € 64,393,039 € 23,252,395 € 9,273,190 € 17,000,849 € 23,182,975 for SUD funding too. TOTAL € 6,776,704,167 € 3,046,982,180 € 1,039,380,000 € 1,905,530,000 € 2,598,450,000 142 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 143 More Organizational models should ideally be tailored to the types of urban areas existent in Romania right now. Largely, Romania has three types of urban areas: DIVERSITY Bucharest – the capital, and one of the major metropolises in Europe. The SUD approach is embedded in a place-based rational for economic development. A key aspect that underpins this logic is that territories have different development needs and that Larger urban areas, with more than 200,000 people. local actors are best able to respond to these challenges. In other words, it recognizes the diversity of places and as such a diversity of approaches are required to address development challenges Urban areas with less than 200,000 people. and exploit opportunities. The way EU funds have been allocated for urban areas, follows, more or less this typology. For For the 2021-2027 Programming Period, it will be critical to allow urban areas to access a more example, for the 2007-2013 Programming Period, EU funds were pre-allocated for seven growth diverse palette of interventions under the SUD. Some options are discussed below. poles and 13 development poles which were considered to be the main urban areas within their respective regions and which be considered the engines of growth for their regions. The other urban areas, including Bucharest, could compete for funds in a pot dedicated to them. For the More THEMATIC DIVERSITY 2014-2020 Programming Period, 39 county capitals (with the exception of Tulcea, which could Cities have a varied palette of needs, and usually the bigger the city, the more diverse and access funds under the Danube Delta ITI) had a dedicated pot of funds under Axis 4 of the ROP, complex the needs. Output 2 under this program on areas/sectors for interjurisdictional cooperation while the other urban areas could compete for funds in a dedicated pot under Axis 13 of the ROP. provides an extensive list of areas/sectors that could be considered for the SUD 2021-2027. Obviously, not all of these areas/sectors should be taken into consideration, but the list could be FIGURE 31. used as a basis for discussion with local administrations, to determine how EU funds could better respond Growth Poles and Development Poles in Romania to their needs. The current 39 Article 7 cities in Romania, have access to only four thematic areas, with a large focus on sustainable mobility. By comparison, Poland allowed access to 39 thematic areas. Therefore, in order to enable urban areas to develop strategies that are better able to target their development needs, a wider range of investment priorities should be made available to them. More TERRITORIAL DIVERSITY As noted above, resource allocations should emphasize FUAs rather than cities and interventions in urban areas should take into consideration the needs of suburban and peri-urban communities. Many of these suburban and peri-urban communities are defined as rural areas and can only access financing from the National Rural Development Programme, although their needs are quite specific and similar to the ones from urban areas. In fact, suburban and peri-urban areas were left in gray areas for the 2014-2020 Programming Period, without access to funding that squarely addresses their needs (e.g. large resources for the development of connective infrastructure, urban infrastructure, educational infrastructure, or health infrastructure). In order to prevent a similar situation in the 2021-2027 Programming Period, the SUD mechanisms should allow for the inclusion of a wider range of territories and stimulate the links within FUAs. In the case that it is chosen to use integrated territorial mechanisms, they should be designed taking into account the optimal level of “critical mass” needed to ensure the functionality of the urban, suburban, and peri-urban areas, and based on the participatory and partnership mechanisms previously activated. More ORGANIZATIONAL DIVERSITY Given the relative diverse array of urban areas in Romania, it would be beneficial to provide a wider array of organizational models for SUD funds, to respond to these needs. The main options include: 1) Operational Programme for urban/metropolitan areas; 2) ITIs for metropolitan areas and urban agglomerations; and 3) dedicated priority axis under an Operational Programme. In Both the approaches taken in 2007-2013 and in 2014-2020 Programming Periods have their addition, JESSICA funds could be set-up, to allow stakeholders in the urban areas to access small merits and weaknesses. A more diverse approach could address these weaknesses. For one, it is sums for interventions they need. important to have a separate and integrated approach for Bucharest, as it faces some unique 144 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 145 challenges. Next, it is important to consider how the major secondary urban areas could be assisted FIGURE 33. so that they become regional development pillars that can strengthen the competitiveness of The larger Bucharest Area is Romania’s economic heart regions whilst also attracting people and reducing out-migration. Lastly, it is important to provide funding for subregional urban areas in order to help them raise the standard of living and anchor rural communities. In practice, this means that SUD funding should overwhelmingly go to the largest secondary cities (e.g. the growth poles and the development poles), capable of pulling upward the economy of their respective regions. Some approaches will be discussed below. SUD 2021-2027 for Bucharest-Ilfov The Bucharest-Ilfov Region is a developed region, and as such it receives a more modest EU funds allocation. Bucharest has benefited directly from funds that target social inclusion, competitiveness of SMEs, Research & Development and environmental sustainability. Indirectly, Bucharest had the opportunity to benefit from large infrastructure investments in highways, roads, railways, or the metro system. Many of these investments have nevertheless been implemented without an overarching integrated development strategy and therefore lack coordination. For the 2021-2027 programming period, it would be important to use a tool that will encourage an integrated approach for the area. This can either consist of a separate Operational Programme as is the case in several other major European cities (Prague, Brussels, or Stockholm) or through an ITI which is able to draw funds from different programs and priority axes. It is important to note that while Bucharest itself is a developed area, albeit a developed area with (still) many problems, it is surrounded by less developed areas which depend on the good performance of the The gravitational models below show how important Bucharest-Ilfov is for the surrounding areas. capital for their own development. The City of Bucharest amasses around two million people, but Thus, when considering the demographic and economic concentration in the South Region (the the one-hour-by-car access area around Bucharest region surrounding the Bucharest-Ilfov Region), we see it is evident that economic benefits FIGURE 32 (see figure below) brings together over four million spill way outside of Bucharest-Ilfov – primarily along the A1 Highway to Pitești and the DN1 Model implementation mechanisms for FUAs for people (20% of the country’s population). If metropolitan areas Road to Ploiești. Moreover, there is an area with high demographic density between Bucharest, Bucharest performs better the benefits will (ideally) Ploiești, Târgoviște, and Pitești, which seems to have not yet tapped its full economic potential – spill over to all these four million people, and to the particularly the area around Târgoviște. country as a whole. In this situation an ITI would be able to combine funds from ERDF, ESF, CF and FIGURE 34. potentially EAFRD to address challenges in a more Demographic (left) and economic (right) gravity model for the South Region targeted way. However, the case of Prague also demonstrates that there is merit in combining a separate OP with an ITI. The OP would focus on the core city whilst the ITI would be able to focus on the larger FUA and include peri-urban and rural areas. The latter could be serviced through CLLD integrated into the ITI (see Figure 32 on the left). 146 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 147 SUD 2021-2027 for secondary urban areas EMPLOYED FIRM Population REVENUES   %   PEOPLE %   % The World Bank’s Magnet Cities29 report talks at length about the importance of strengthening (2011) (million euros), (2011) secondary urban areas, as a way of anchoring regional economies, and pulling the national in 2015 economy upward. Similarly, the National Territorial Development Strategy30 advocates for WEST 1,828,313 100.0% 747,149 100.0% € 19,213 100.0% polycentric development and the needs to strengthen secondary urban areas. The table below, Timișoara 508,037 27.8% 236,703 31.7% € 9,004 46.9% shows that within each region there are a handful of urban areas that generate most of the Arad 296,981 16.2% 131,041 17.5% € 4,821 25.1% regional economic output. Moreover, these urban areas are disproportionately more productive Deva 158,650 8.7% 76,433 10.2% € 1,270 6.6% than smaller urban areas and the rest of the region – i.e. there is a clear premium to size. Reșița 81,091 4.4% 33,375 4.5% € 558 2.9% Unfortunately, secondary urban areas in Romania are currently too small to anchor the wider regional economy. Strengthening these secondary urban areas, and making them more attractive FUAs Total 1,044,759 57.1% 477,552 63.9% € 15,654 81.5% to people, will be key to unlocking the development potential of each region. EU funds play an CENTER 2,360,805 100.0% 940,345 100.0% € 26,183 100.0% important role, in particular in terms of providing capital investment to develop the enabling Brașov 455,830 19.3% 202,138 21.5% € 8,486 32.4% conditions of these secondary urban areas. Târgu-Mureș 251,523 10.7% 110,199 11.7% € 4,631 17.7% Sibiu 270,064 11.4% 124,109 13.2% € 3,677 14.0% For the 2021-2027 Programming Period, a number of organizational models are possible to Alba Iulia 113,461 4.8% 54,331 5.8% € 2,544 9.7% respond to the needs of these secondary urban areas: 1) dedicated Operational Programme; Sfântu Gheorghe 84,341 3.6% 36,307 3.9% € 670 2.6% 2) dedicated axis within an Operational Programme; 3) ITIs. Each of these approaches has its merits and shortcomings and these were discussed in the previous section. Miercurea Ciuc 97,627 4.1% 42,672 4.5% € 510 1.9% FUAs Total 1,272,846 53.9% 569,756 60.6% € 20,517 78.4% TABLE 24. How important urban areas are for regional economies SOUTHEAST 2,545,923 100.0% 1,048,866 100.0% € 21,484 100.0% Constanța 546,900 21.5% 219,753 21.0% € 8,686 40.4% FIRM EMPLOYED Galați 339,408 13.3% 151,776 14.5% € 4,196 19.5% Population REVENUES   %   PEOPLE %   % (2011) (million euros), Buzău 258,137 10.1% 111,139 10.6% € 2,595 12.1% (2011) in 2015 Brăila 196,818 7.7% 76,422 7.3% € 1,470 6.8% NORTH WEST Tulcea 94,092 3.7% 70,114 6.7% € 1,092 5.1% 2,600,132 100.0% 1,069,626 100.0% € 24,714 100.0% (Lagging) Focșani 172,530 6.8% 77,227 7.4% € 1,060 4.9% Cluj-Napoca 470,939 18.1% 215,275 20.1% € 8,872 35.9% FUAs Total 1,607,885 63.2% 706,431 67.4% € 19,098 88.9% Oradea 336,538 12.9% 154,595 14.5% € 4,362 17.7% Baia Mare 215,129 8.3% 91,812 8.6% € 2,339 9.5% SOUTH (Lagging) 3,136,446 100.0% 1,344,065 100.0% € 26,381 100.0% Satu Mare 195,584 7.5% 77,998 7.3% € 2,088 8.4% Pitești 348,981 11.1% 183,206 13.6% € 9,218 34.9% Bistrița 126,860 4.9% 64,419 6.0% € 1,602 6.5% Ploiești 506,213 16.1% 213,284 15.9% € 7,041 26.7% Zalău 90,073 3.5% 41,931 3.9% € 936 3.8% Târgoviște 210,410 6.7% 99,872 7.4% € 1,199 4.5% FUAs Total 1,435,123 55.2% 646,030 60.4% € 20,199 81.7% Slobozia 80,570 2.6% 33,639 2.5% € 946 3.6% Călărași 104,323 3.3% 43,774 3.3% € 863 3.3% NORTH EAST Alexandria 70,409 2.2% 31,766 2.4% € 641 2.4% 3,302,217 100.0% 1,441,083 100.0% € 16,093 100.0% (Lagging) Giurgiu 80,932 2.6% 33,276 2.5% € 412 1.6% Iași 414,869 12.6% 193,830 13.5% € 3,855 24.0% FUAs Total 1,401,838 44.7% 638,817 47.5% € 20,320 77.0% Bacău 228,656 6.9% 108,638 7.5% € 2,923 18.2% SOUTHWEST 2,075,642 100.0% 857,119 100.0% € 11,352 100.0% Suceava 182,955 5.5% 85,310 5.9% € 1,402 8.7% Piatra Neamț 148,011 4.5% 66598 4.6% € 1,268 7.9% Craiova 380,641 18.3% 171,052 20.0% € 4,398 38.7% Botoșani 129,276 3.9% 56509 3.9% € 1,099 6.8% Slatina 132,789 6.4% 63,374 7.4% € 1,996 17.6% Vaslui 80,861 2.4% 39,929 2.8% € 533 3.3% Râmnicu Vâlcea 233,497 11.2% 106,795 12.5% € 1,803 15.9% Târgu Jiu 144,618 7.0% 67,396 7.9% € 1,305 11.5% FUAs Total 1,184,628 35.9% 550,814 38.2% € 11,080 68.8% Drobeta Turnu 120,762 5.8% 56,541 6.6% € 450 4.0% Severin 29 World Bank. 2017. Magnet Cities: Migration and Commuting in Romania FUAs Total 1,012,307 48.8% 465,158 54.3% € 9,952 87.7% 30 http://sdtr.mdrap.ro/ 148 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 149 A dedicated OP, or a dedicated priority axis, would, by definition, take a wholesale approach, being prepared for a selection of urban areas. The ITI tool, on the other hand, allows a tailoring of More interventions, to the needs of each individual urban area. With respect to the areas that the ITI tool could be used for, one could have both SUD and non-SUD areas. SUD ITI areas could include: FLEXIBILITY Similar to the need for more diversity, in order to accommodate the variegated nature of • Bucharest-Ilfov urban areas and the different stages in terms of the development of capacity, networks, and • Seven regional growth poles (as was done in Poland) – i.e. the metropolitan areas of partnerships, a flexible approach would strengthen the implementation of SUD and non-SUD Brașov, Cluj-Napoca, Constanța, Craiova, Iași, Ploiești, and Timișoara; territorial approaches over the implementation period. Flexibility includes more organizational, • Three urban agglomerations (Brăila-Galați, Deva-Hunedoara-Simeria, Valea Jiului) cooperation, and operational flexibility. (similar to the Czech approach); • Other constituted metropolitan areas that make a compelling case for how an ITI would help with their metropolitan development, particularly in terms of establishing More ORGANIZATIONAL FLEXIBILITY intermunicipal partnerships. In this situation, a strategy competition could be organized, In-depth consultations should be organized with the local administration to determine what type the way it was done in Italy. of organizational models would best serve their needs, and to try to establish these organizational models as close as possible to the vision of these local administrations. Some urban areas may With respect to the non-SUD approach, some options for consideration include: require complex integrated interventions that require an ITI tool, while others may need a large • Danube Delta – continuation of the 2014-2020 approach, with a stronger focus on infrastructure intervention that could be undertaken from a dedicated priority axis. Similarly, environmental sustainability; some urban areas may require interventions through 30 thematic areas, while other will require interventions from a smaller number of thematic areas. • Black Sea resorts – similar to the Spanish approach (Azul and Mar Menor), to have integrated investments focused on coastal areas; • Apuseni Mountains – an area with severe demographic decline and aging problems; More COOPERATION FLEXIBILITY • Măgurele Laser Valley – the largest R&D hub in Romania. Development dynamics rarely follow strict administrative boundaries, so local authorities should be offered the option of accessing EU funds for various types of interjurisdictional arrangements. Another option worth considering, is how the three urban partnership agreements that have For example, in Spain there is an ITI that span several NUTS2 and LAU2 regions. Italy and been signed in recent years (Brașov-Bucharest-Constanța, Oradea-Arad-Cluj-Timișoara, Slovenia have managed to devise a cross-border ITI. And, rural areas in Romania routinely Suceava-Iași-Piatra-Neamț-Roman-Botoşani-Câmpulung Moldovenesc-Vatra Dornei) can be implement cross-jurisdictional projects through the CLLD approach, although some think that supported by European funding. These represent bottom-up initiatives, initiated by constituent this is impossible for urban areas in Romania. local administrations, without requiring any outside incentives. Supporting such initiatives may make them more sustainable in the longterm than requiring new entities to be established for Perhaps even more importantly, ITI appear to be an excellent tool to strengthen interjurisdictional access to EU funds. Allowing for an ITI for these partnerships may also strengthen and deepen projects and partnerships within Functional Urban Areas. The case of Poland is particularly them. This is also an approach that has been implemented successfully in Finland, through a instructive which demonstrates that pre-existing largely dormant interjurisdictional partnerships partnership between the major urban areas in the country. can be resurrected and strengthened through the ITI tool. The allocation of funding to these partnerships affords real impetus to cooperation and forms the basis for deeper relationships. It is possible that these associations, (some of them already having legal status and operating regulations, e.g. “Moldova se dezvolta” Association) could ensure a better dynamic of preparation It is important to offer flexibility in terms of the choice of legal form of collaboration, depending on and implementation of their investment projects, through their own internal mechanisms to the local context, planned scope of collaboration, capacity and number of involved municipalities, stimulate cooperation between members and to minimize bottlenecks or delays. and level of trust among them. The Polish example shows that in some cases, a simple form is enough to mitigate joint ITI implementation. Simpler forms limit the costs that have to be In order to choose the most suitable and feasible options, it is strongly recommended to undertake invested in collaborative activities and allow for covering most of the tasks within existing permanent consultation and involvement from the beneficiaries of the future interventions and administrative structures. In others, a more advanced form is preferred by local actors due to of their associations, learning from the difficulties arising in the implementation of the current higher capacity and broader scope of collaboration. A separate, new intermunicipal organization ROP. It is possible that several approaches would be needed, depending on at least the following allows more equal power relations among municipalities, and more independence in terms of elements: the specificity of the territory, problems, needs, resources, administrative capacity, joint activities, both from the political and organizational perspective. availability for collaboration, the degree of maturity of existing associations, and relevant legislative constraints. 150 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS RECOMMENDATIONS 151 More OPERATIONAL FLEXIBILITY from the national level to the local level. For example, in Czechia, an Operational Programme was devised for the Prague Metropolitan Area, with the managing authority sitting in the Prague City While it is important to set out clear priorities at the beginning of a programming period, and Hall. Similarly, the other large metropolitan areas and urban agglomerations in Czechia could to follow-through on those priorities, it is also important to create some space for adjustments take advantage of the ITI tool, and have intermediary bodies, with significant responsibilities, midway through. Development dynamics can change dramatically over a nine-year implementation sitting under the core city administration. In Poland, a national regional Operational Programme period, so some operational flexibility should be allowed. was used 2004-2006, and later the system was effectively decentralized by creating 16 ROPs. Over the years, the administrative capacity increased significantly in the regions, which trained An important consideration here is that urban areas have different levels of experience and their staff and specialized in EU funds management. capacity. These are likely to change throughout the programing period. Once urban authorities build up capacity and have demonstrated competence, they should be allowed to extend their Most EU countries effectively created intermediate bodies (IBs) at the local level in order to responsibilities. Operational procedures should allow for an iterative approach to learning. decentralize EU funds management and follow the place-based approach to EU policies. In the majority of the countries there were initial problems with the administrative capacity at the More local level, and the scope of tasks delegated to them differs. However, the initial analyses show DECENTRALIZATION that over time there was an improvement in the performance of such institutions, and the initial low capacity should not discourage others from the decentralization of EU funds management. From the review of organizational models in other EU countries, it is clear that a higher degree of It is advised to empower local institutions in the process of implementation, increasing the decentralization has enabled more resources across the board (e.g. through regional Operational number of local IBs and delegating to them a more extensive scope of tasks. This will promote Programmes), more diversity (with more thematic areas available), and more flexibility (with a better tailoring of EU investments to local needs, and build capacity in the municipalities, thereby variety in approaches from region to region, and from urban area to urban area). strengthening sustainable urban development in Romania. Some options that can be considered here include: regional decentralization; local decentralization; Other tools that can allow local administrations to bring development decisions at the local level, and community decentralization. are revolving funds, like JESSICA. Such revolving funds could be setup at the metropolitan level, and enable various stakeholders (e.g. smaller municipalities, SMEs, NGOs) to access funding for (generally) small development project. When the loan from the revolving fund is repaid, the fund More REGIONAL DECENTRALIZATION gets replenished and other projects can be financed. Annex 7 provides more details on how such Without NUTS2 administrative regions, it will be hard to have true regional decentralization, and an urban/metropolitan development fund could be set up, and what some of the advantages and use regional Operational Programmes for each individual region. If each region could elaborate disadvantages of such a fund are. There are a number of examples where financial instruments its own regional Operational Programme, it could more adequately target its distinct needs. A were integrated with SUD approaches including ITIs (e.g. the Hague, Brussels, and London). single national regional Operational Programme can hardly accommodate the wide array of needs – from the more urban and more developed regions, to the more rural and less developed regions. An option could be for the national regional Operational Programme to include a common More COMMUNITY DECENTRALIZATION investment chapter, for the common needs of the regions, and packages with specific options for All EU funded interventions should ultimately respond to the needs of the people living in the each region, depending on the local / regional needs. targeted areas. As such, more ambitious and creative citizen engagement tools31 should be However, a wider array of operational tasks (ideally everything that the legislation and regulations devised to see how investment program could be fine-tuned to the needs of people. For example, allow) should be moved from the national level to regional development agencies (RDAs) and the World Bank’s citizen engagement efforts under Your City’s Priorities Campaign have shown a other intermediary bodies, to allow operations to be as close to the beneficiary as possible. disproportionate preference of people in many urban areas for health infrastructure – an area/ sector that is not covered as well as it could be (given people’s preference for it). The possibility of having regional priorities defined at the regional level, potentially through regional Operational Programmes, would also make organizational models such as the ITIs more Due to the highly centralized nature of Romanian governance structures, local authorities have feasible. Metropolitan ITIs have been used most extensively in countries with regional Operational relatively little experience in terms of implementing ESIF. Such authorities should be supported Programmes, with the thematic areas covered by the ITI being decided locally, rather than nationally. through urban networks at the national and European level. The introduction of SUD in the 2014- 2020 period has led to the strengthening or creation of urban development networks (e.g. Spain, Poland, etc.) to support capacity building efforts, together with the Urban Development Network More LOCAL DECENTRALIZATION at the European level. Such structures are important to share information, establish links and Operational Programmes in Romania are overly centralized, with a lot of the decisions removed develop new ideas. from the people they are supposed to impact. As such, local administrations should be involved more extensively in the planning, design, and implementation of Operational Programmes. To the 31 In devising the tools, attention should be paid to their appropriateness and accuracy e.g., to eliminate the possibility of a extent possible, and in accordance with actual capacity, more decision power should be moved multiple vote by the same respondent. 152 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS Decentralization should also include local stakeholders (private companies, non-government organizations, universities, and various public sector institutions) in the process of programming and implementing SUD instruments. In the context of the low administrative capacity of the local authorities, it is important to use the knowledge of other local actors that could help in delivering data, diagnosing the crucial problems of urban areas, and setting development objectives. Organizing public consultations, expert panels and partnership projects could help in legitimizing SUD strategies, raising their quality, and designing interventions crucial for local development. In some countries, e.g. Czechia and Finland, local IBs created cross-sector partnerships that helped in designing the SUD strategy, and then monitor its implementation. A similar approach could help in overcoming local capacity challenges in Romania. SOME OPTIONS FOR THE SUD 2021-2027 SOME OPTIONS FOR THE SUD 2021-2027 155 Some of the options that can be considered for the next programming period, include: Option 1. Dedicated axis under the ROP 2021-2027, as is the case now, but with a higher concentration of funds – i.e. larger allocations for larger urban areas, and with the possibility of interjurisdictional agreements or project-based partnerships to be eligible for EU funding. Premiums should be offered to the local administrations that choose to pursue functional urban area approaches, or funding lines could be dedicated to strategic projects with metropolitan impact. Also, there should be a wider menu of intervention fields that urban areas could choose from. Option 2. A Metropolitan Areas Operational Programme, dedicated to the growth poles and development poles from the 2007-2013 Programming Period (following the Italian model), with a higher thematic diversity, and with eligibility open for all territorial administrative units that are part of the metropolitan area / functional urban area of these growth poles and development poles. One, or several axes under this OP could be dedicated to interjurisdictional projects that respond to metropolitan or urban agglomeration dynamics. Projects under these axes could be negotiated and prioritized ahead of time and would not be subject to competitive selection. All other urban areas could have a dedicated axis in the ROP 2021-2027, similar to the current Axis 13 of the ROP 2014-2020. In addition, for targeted issues, urban areas should have the possibility to form Local Action Groups, with other local administrations, private sector representatives, and/or NGOs. Also, as is the case for the SUD 2014-2020, for thematic areas that are not included specifically in the Metropolitan Areas OP, local administrations should be allowed to access funding from other OPs. Option 3. ITIs for the seven growth poles, with around 50% of total SUD funding. Another 50% of the funding would be allocated for the other 32 county capitals through a dedicated priority axis under the ROP (similar to the current Axis 4, but with the adjustments discussed under Option 1). All the other urban areas could have a dedicated axis under the ROP 2021-2027, similar to the approach currently used with Axis 13 of the ROP 2014-2020. For targeted issues, urban areas should have the possibility to form Local Action Groups, with other local administrations, private sector representatives, and/or NGOs. For thematic areas that are not included specifically in the dedicated axes, local administrations should be allowed to access funding from other OPs. 156 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS SOME OPTIONS FOR THE SUD 2021-2027 157 FIGURE 33. the function and attributions of the Managing Authority are transferred at the regional Functional urban areas of Bucharest and 40 county capitals level to RDAs, taking over some areas from the current nationally managed Operational Programmes. According to Article 65, Paragraph 1 from the Cohesion Policy proposal, “the Member State shall identify for each programme a managing authority and an audit authority.” The Ministry of European Funds, as national coordinator, could, for example, identify Regional Development Agencies as management authorities for the 8 Regional Operational Programmes. In accordance with Annex XIV of the Cohesion Policy proposal, the status of the managing authority can be that of a national, regional or local public body, or that of a private entity. Based on Article 65, Paragraph 3, the regional MA “may identify one or more intermediate bodies to carry out certain tasks under its responsibility.” Depending on the SUD approach decided at the regional level, the local administrations could play the role of intermediary bodies. Article 23, Paragraph 4 indicates that “where an urban, local or other territorial authority or body carries out tasks falling under the responsibility of the managing authority other than the selection of operations, the authority shall be identified by the managing authority as an intermediate body.” Option 5.2. Maintaining the current framework with a national ROP for part of the regions and pilot Regional OPs for three to five voluntary regions. Within this option, one could have a mix of regional programs: one managed nationally (similar to the one from 2014-2020) and three to five Regional OPs managed similar to Option 5.1 in which the function and duties of the Managing Authority are transferred at regional level. Participating in such a pilot program would be voluntary. Option 5.3. Keeping a national ROP, with an axis and allocation dedicated to each region, as well as with a consistent transfer of competencies to the regions. The Global grant model of the Large Infrastructure OP could be used as a model. Within this option, everything is organized under a single regional Operational Programme. However, the particularities of each region are transposed at the level of specific axis and differentiated Option 4. allocation. The managing authority at the central level has exclusively the coordinating Urban Development Operational Programme for the current 39 Article 7 urban areas. As discussed role of the program, all the other attributions will be exercised at the level of the RDAs as under Option 1 and 2, dedicated priority axes should be made available for strategic projects with intermediary bodies. For the SUD approach, the local administrations could function as metropolitan impact. A dedicated priority axis under the ROP 2021-2027 would be available for secondary intermediary bodies. small urban areas, with an approach similar to the current Axis 13 of the ROP 2014-2020. For targeted issues, urban areas should have the possibility to form Local Action Groups, with other local administrations, private sector representatives, and/or NGOs. For thematic areas that are not included specifically in the dedicated axes, local administrations should be allowed to access funding from other OPs. Option 5. Regional Operational Programmes, with the SUD approach decided individually for each region (as is the case in Italy). Several sub-options can be considered here, as follows: Option 5.1. 8 Regional Operational Programmes with regional MAs. Within this option, CONCLUSION CONCLUSION 161 Most EU member states devised organizational models that enabled interjurisdictional cooperation to access EU funds, in relation to sustainable urban development, often with a strong focus on metropolitan areas and functional urban areas. Romania has also made use of organizational models that have benefited interjurisdictional cooperation, but primarily in non-urban settings – i.e. the Danube Delta ITI, and Local Action Groups in rural areas. For a variety of reasons, Romania has allocated EU funds to core cities rather than to functional urban areas. This report argues that for the 2021-2027 Programming Period, a bolder SUD approach could be promoted – one that also takes metropolitan areas and urban agglomerations into consideration. As the various EU case studies have shown, regardless of which major organizational model was used (dedicated OP, dedicated priority axis, ITI), the SUD focus has most often been on urban areas not just on core cities per se. ESIF funding is a key driver for developing Romanian in urban areas, secondary urban areas, in particular, should benefit from this support. Evidence from OECD and World Bank studies demonstrates that these urban areas are the economic engines that will support forward growth for the whole Romanian economy. In order to maximize the impact of ESIF funding, the strategies should extend beyond traditional administrative boundaries and target functional urban areas. Yet, ESIF funding or EU organizational models for interjurisdictional cooperation should not be regarded as the panacea for all ills. In order to address structural challenges such peripherality, capacity, lower quality of institutions, policy goals and resources at the European, national, regional, and urban levels have to be aligned. Only in this manner can the preconditions for economic opportunities be supported to its greatest extent. Nevertheless, the individual case studies have identified a number of ways in which the ESIF funds can drive changes in culture, organization, and policy: 1. Multijurisdiction cooperation approaches have evolved as they matured (Polish and Portuguese examples). This maturity is likely linked to the rate of urbanization – so as urban areas grew, so also did approaches to managing complex urban challenges. Proponents of this approach need to appreciate this, take a long-term view and build in mechanisms and capability for learning and refinement as the system matures. 162 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS 2. Multijurisdiction cooperation structures that were informed by a clear national urban development/growth strategy seem to have been more successful. A national assessment of growth poles and associated Functional Urban Areas that are maintained over time, supported by robust institutional, planning, and fiscal resources – improves the performance of identified urban areas, strengthens urban-rural linkages, and satisfies the need to make integrated investments outside the administrative territory, in order to provide public services in correlation to demand and with the optimal sizing of potential users. Further, a strong national strategy provides a basis for aligning European policy frameworks to those at the national level, whereas without this, there are risks of policy drift and a lack of direction. 3. Flexible institutional responses – there is evidence of various approaches to structuring multi-jurisdiction cooperation, from informal (agreements) to formal. The decision on which modality works should be made taking factors like context, capacity, etc. into ANNEXES account. In order to respond to the different levels of capacity and resources, national governments should consider a “deal-making” type of approach to SUD implementation. This would allow for tailored structures, responsibilities, and operations, while ensuring they meet national and European expectations. This flexibility should be extended in an iterative manner; when urban areas learn and build capacity the basis of cooperation can be strengthened. . 4. Financing - the case studies highlighted the different ways in which these structures and their work were financed. While focus was given to how the EU funds were utilized, it is clear that where there was financial certainty (with national funds also being allocated to the same areas and sectors), there was greater success. At the same time, it would be necessary for the national funding to be designed in such a way that it does not compete with European funding, with the risk that beneficiaries will prefer the national one (especially if the national mechanism is easier), negatively affecting attraction of European funds. . 5. Clarity of roles and responsibilities - multijurisdiction cooperation requires clear delineation of roles and responsibilities between various parties. These range from strategy formulation and approval, project selection and monitoring, reporting, and evaluation. These decisions should also be taken considering capacity and capability. In Portugal for instance, municipalities assumed the powers and functions of IBs. In Romania, the RDAs are the ones that have accumulated and proven experience as IBs, as well as supporting structures for urban development in the two most recent programming periods. A natural step for the next period, would be to extend the attributes of the current structure, to support all categories of cities to identify and implement the sustainable urban development projects. . 6. Capacity - multijurisdiction cooperation requires capacities that may not be typically resident in local municipalities. For instance, analytics of metro-level mobility, strategy development, and project execution. Building this capacity is an important cog in the development of a suite of instruments to strengthen metro-level planning, project implementation, and funds’ absorption. Urban networks at the European, national, and potentially regional level can play an important role in terms of building capacity. 164 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 1. THEMATIC AREAS COVERED BY THE POLISH ITIs 165 ANNEX 1. 6d.) Protecting and restoring biodiversity and soil and promoting ecosystem services, including through Natura 2000, and green infrastructure Thematic Areas Covered by the Polish ITIs 6i.) Addressing the significant needs for investment in the ... 6ii.) Addressing the significant needs for investment in the ... 1b.) Promoting business investment in R&I, developing links and synergies between enterprises, 6iv.) Improving the urban environment, including regeneration ... research and development centers and the higher education sector, […] 7b.) Enhancing regional mobility by connecting secondary and tertiary nodes to TEN-T 2c.) Strengthening ICT applications for e-government, e-learning, e-inclusion, e-culture and infrastructure, including multimodal nodes e-health 7c.) Developing and improving environmentally-friendly (including low-noise) and low-carbon 3a.) Promoting entrepreneurship, in particular by facilitating the economic exploitation of new transport systems, including inland waterways and maritime transport, ports, multimodal ideas and fostering the creation of new firms, including through business incubators links and airport infrastructure, in order to promote sustainable regional and local mobility 3b.) Developing and implementing new business models for SMEs, in particular with regard to 7d.) Developing and rehabilitating comprehensive, high quality and interoperable railway internationalization systems, and promoting noise-reduction measures 3c.) Supporting the creation and the extension of advanced capacities for product and 8i.) Access to employment for job-seekers and inactive people... service development 8ii.) Sustainable integration of young people not in employment... 4a.) Promoting the production and distribution of energy derived from renewable sources 8iii.) Self-employment, entrepreneurship and business creation 4c.) Supporting energy efficiency, smart energy management and renewable energy use in 8iv.) Equality between men and women and reconciliation between... public infrastructure, including in public buildings, and in the housing sector 8v.) Adaptation of workers, enterprises and entrepreneurs to ... 4e.) Promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multimodal urban mobility and mitigation-relevant 8vi.) Active and healthy ageing adaptation measures 9a.) Investing in health and social infrastructure which contributes to national, regional and 4iii.) Supporting energy efficiency and renewable energy use in ... local development, reducing inequalities in terms of health status, promoting social inclusion through improved access to social, cultural and recreational services and the 4iv.) Developing smart distribution systems at low voltage ... transition from institutional to community-based services 4v.) Promoting low-carbon strategies for urban areas 9b.) Providing support for physical, economic and social regeneration of deprived communities 4vi.) Promoting the use of high-efficiency co-generation of heat and power based on useful in urban and rural areas heat demand; 9i.) Active inclusion 5b.) Promoting investment to address specific risks, ensuring disaster resilience and developing 9iv.) Enhancing access to affordable, sustainable and ... disaster management systems 9v.) Promoting the social economy and social enterprises 5ii.) Promoting investment to address specific risks, ensuring ... 10a.) Investing in education, skills and lifelong learning by ... 6a.) Investing in the waste sector to meet the requirements of the Union’s environmental acquis and to address needs, identified by the Member States, for investment that goes 10i.) Reducing early school-leaving and promoting equal access ... beyond those requirements 10iii.) Enhancing access to lifelong learning, upgrading the ... 6b.) Investing in the water sector to meet the requirements of the Union’s environmental 10iv.) Improving the labor market relevance of education ... acquis and to address needs, identified by the Member States, for investment that goes beyond those requirements; 6c.) Conserving, protecting, promoting and developing natural and cultural heritage 166 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 3. ITI FUNDS 167 ANNEX 2. ANNEX 3. List of Ministries and Operational Programmes ITI Funds MINISTRY OF EUROPEAN FUNDS: Instrument ITI provides funding for projects in all Operational Programmes, including investment in CF, ERDF, ESF, EAFRD and EMFF. Thus, in the 2014-2020 Programming Period for Tool’s • POIM (Operational Programme Large Infrastructure) - approved in July 2015; ITI established indicative allocations totaling about 1.11 billion euros, distributed Operational • POCU (Human Capital Operational Programme) - approved in February 2015; Programmes as follows: • Operational Programme Large Infrastructure - 407,640,000.00 euros; • OPTA (Operational Programme Technical Assistance - approved in December 2014; • Regional Operational Programme - 358,106,383.00 euros; • POC (Operational Programme Competitiveness) - approved in December 2014. • Human Capital Operational Programme - 60,000,000.00 euros; MINISTRY OF REGIONAL DEVELOPMENT AND PUBLIC ADMINISTRATION: • ROP (Regional Operational Programme) - approved in June 2015; • Operational Programme Competitiveness - 60,000,000.00 euros; • POCA (Operational Programme Administrative Capacity) - approved in February 2015; • Operational Programme Administrative Capacity - 16,000,000.00 euros; • European Territorial Cooperation Operational Programmes. • National Rural Development Program - 168,000,000.00 euros (including national contribution); MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT: • Operational Programme for Fisheries and Marine Affairs - 37,000,000.00 euros; • RDP (Rural Development Program) - approved in May 2015; • Operational Programme Technical Assistance - 5,000,000 euros. • POPAM (Operational Programme for Fisheries and Maritime Affairs) - approved in December 2015. The link between ADI-ITI Delta and the Ministry of European Funds (MFE) and other ministries, namely Ministry of Regional Development and Public Administration (MDRAP) and the Ministry of Agriculture and Rural Development (MARD) is done through the Working Group functional whose secretariat is the MFE, as ministry coordinator. 168 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 5. DANUBE DELTA ITI PROJECTS ORGANIZED BY DEVELOPMENT PILLARS 169 ANNEX 4. ANNEX 5. ADI ITI DD Organizational Chart and Main Functions Danube Delta ITI Projects organized by development Pillars General 38 assembly President 1 Consultative 50 Committee Decision making level Executive level Board of 3 directors Executive director 1 (ITI Coordinator) Secretariat Administrative Juridical 3 1 Human service resource IT Support Finance 2 2 Database Service Relation with DD Strategy Relation with 1+2 1+5 1+1 Beneficiaries and ITI projects MAs Main tasks: Main tasks: Main tasks: Help desk / guidance for Monitoring and review DD Reporting to MAs Beneficiaries Strategy and ITI projects Review OPs documents Information & communication Perform projects eligibility (administrative) Review aspects and data on local Participate in the technical development/changes commission of the beneficiaries Relation with Consultative Council 170 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 5. DANUBE DELTA ITI PROJECTS ORGANIZED BY DEVELOPMENT PILLARS 171 172 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 6. TYPES OF INTERVENTIONS POSSIBLE UNDER THE DANUBE DELTA ITI 173 ANNEX 6. Types of interventions possible under the Danube Delta ITI Interventions that can be financed through LIOP OP Priority Axis Type of intervention Beneficiary H/M/L National Company of Motorways and National Roads – Rehabilitation of county roads and support for urban mobility CNADNR M  County council Local public authorities Axis National Agency 2 Modernization of ports (Tulcea, Sulina, Macin, Isaccea, Mahmudia, and Chilia) for Ports – Regional  L section Tulcea Ministry of Transport – Development and modernization of airport infrastructure L  Civil Airport Authority National Agency Rehabilitation and modernization of the Sulina Channel for Ports – Regional L section Tulcea The Applicant will be IDA Tulcea Water for (Projects in areas with > 2,000 Population equivalent) the following localities: Tulcea, Babadag, Axis Improvement of the WTP, rehabilitation of old parts of the water network. Macin, Sulina, Isaccea, H  3 Extension of the sewerage network and interconnectivity with main sewerage Greci, Vacareni, collector, including pumping stations for sewage Somova, Maliuc, Sarichioi, Chilia Veche, Crisan, Smardan Investments in SWM systems for handling separated waste (waste separation at IDA Tulcea WASTE  M source, collection, sorting and transportation facilities). Composting bins for rural households to process organic waste IDA Tulcea WASTE  L Axis Collection of floating waste in river channels DDBR  H 3 SW Investments in treatment and disposal facilities for construction and demolition IDA Tulcea WASTE  L waste Development and implementation of measures to reduce solid waste in natural DDBR H  areas 174 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 6. TYPES OF INTERVENTIONS POSSIBLE UNDER THE DANUBE DELTA ITI 175 OP Priority Interventions that can be financed through COP Axis Type of intervention Beneficiary H/M/L OP Priority Equipment and operating costs for physical interventions to restore natural water Axis Type of intervention Beneficiary H/M/L DDBR  M circulation and key habitat areas Increasing private investments in RDI and encouraging the demand for RDI RD Centers L Restoration of ecological systems and natural habitats within “Natura 2000” network for species of European conservation concern, by ecological restoration Increasing knowledge, technology, and staff transfer with RDI skills by means of Private sector and RD DDBR  M L works in the lakes of the natural lacustrine complexes affected by alluvial partnerships between private and research environments centers processes caused by human intervention Axis Increasing the excellence of scientific basis as engine for innovation, by developing 1 RD centers L Reconstruction / restoration of natural habitats affected by non-environmental RD infrastructure DDBR M activities in agricultural, fishery, and forestry polders Increasing the involvement in EU level research by unlocking the excellence potential in RDI, such as within the framework program Horizon 2020, and by RD centers L Restoration of ecological systems and natural habitats within “Natura attracting talents and advanced skills to the RDI national system 2000” network for species of European conservation concern, by ecological reconstruction works to improve the hydrological and hydrochemical regime in Public authorities in DDBR M Expanding and developing high speed broadband communication infrastructure L the natural lacustrine complexes of the DDBR, along with the development of an white spots integrated efficient monitoring system covering the whole area of the Danube Delta Biosphere Reserve (including cross-border areas) Public authorities in Increased access to broad-band internet / ultra-fast internet for green tourism H white spots Restoration of ecological systems and natural habitats within “Natura 2000” network for species of European conservation concern, by degraded thicket Increasing vertical integration of ICT innovation solutions in the local economy Private sector L sanitation works, implementation of measures for invasive species management, sanitation of natural ecosystem, management of abandoned domestic animals, Axis Axis DDBR M Increasing the use of e-governance systems Public sector M implementation of measures to protect the affected species, including a 2 4 monitoring station for migratory species and facilities to support populations of Create and maintain an inter-institutional environmental and health risk factor Study area L flora and fauna species that are declining or affected (nesting platforms, artificial database nests, treatment center for sick or injured animals, etc.) Formulating and implementing open data policies for local public authorities Local public authorities L Works for ensuring an effective protection and a good management in the DDBR by marking and signaling the limits of the functional areas of the DDBR; Developing ITC infrastructure and systems and digital skills to support education, DDBR H Private companies L developing access routes for visiting DDBR with minimal impact on natural health, online culture, and digital inclusion habitats Improving management by developing a risk management system by hydraulic modeling and by implementing a modern / efficient monitoring system and DDBR H  predictive model for sedimentation dynamics in the Danube Delta Interventions that can be financed through TAOP Developing an International Center for Advanced Studies on Danube – Danube OP Priority DDBR H Type of intervention Beneficiary Delta – Black Sea for biodiversity conservation Axis H/M/L Studies and TA for biodiversity conservation and restoration of ecosystems and Technical Assistance (TA) for ITI program management: Public (LAUs, County DDBR  M natural habitats within “Natura 2000” network affected by anthropic impacts councils, IDA ITI) and Axis The focus will be on capacity building for project management in regard to drafting technical and other types of documents; procurement; accounting; private (e.g. community M Feasibility studies and technical projects for the restoration of natural habitats 1 environmental assessment and other project management functions. training on accessing affected by non-ecological activities in agricultural, fishery, and forestry polders – DDBR  M Communication efforts should be included as well. funds) integral or partial ecological restoration works Provision of special machinery and equipment for interventions by IES and IES Delta  H SMURD in disaster situations Tulcea IES Delta Interventions that can be financed through ROP Increasing the disaster response capacity of the authorities involved in the crisis Tulcea H and population management Local authorities OP Priority Axis Axis Type of intervention Beneficiary H/M/L 5 Modernization, rehabilitation, and construction of Inspectorate for Emergency IES Delta  L Situations (IES) infrastructure facilities in Tulcea, Măcin, Crişan, Babadag, Topolog Tulcea Develop sustainable business incubators in innovative key sectors SMEs L Works for protection against floods in Babadag, Ceatalchioi, Beștepe, Greci, Encouraging sustainable competitive SME development SMEs L Vulturu, Ilganii de Jos, Nufăru, Ilganii de Sus, Luncăvița, Sulina, Sarichioi, Pardina, Tulcea county M  Axis Săcele, and Sf. Gheorghe localities. 2 Increase the energy competitiveness of local SMEs SMEs L Axis Local public authorities Promoting the use of renewable energy sources H 6 Enterprises Strengthen the productivity of sustainable SMEs in the area SMEs L 176 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 6. TYPES OF INTERVENTIONS POSSIBLE UNDER THE DANUBE DELTA ITI 177 OP Priority OP Priority Axis Type of intervention Beneficiary H/M/L Axis Type of intervention Beneficiary H/M/L Territorial Improving the energy efficiency and increasing the use of renewable energy Rehabilitation of facilities, and upgrading of lab equipment, vehicles, medical Administrative Units L sources in public buildings (schools, hospitals, administrative buildings, etc.) caravan, and boats (TAUs) Tulcea Public Health Axis 3 Extending and improving the energy efficiency of public lighting TAUs L Rehabilitation / modernization of facilities, and medical, office, and IT Individual Territorial L Support for improving energy efficiency of households Household associations L equipment; houses for the family doctors in the Danube Delta localities Administrative Units Develop clear and easy to use local guidelines for climate change and energy efficiency programs Local authorities L Modernization and equipment, and organize a functional building block at Tulcea Tulcea county council, Axis Emergency Hospital (including for integrated ambulatory department), and for L the town of Macin 8 Măcin Hospital Territorial Reinforce and promote the cultural heritage assets of the area L Administrative Units Rehabilitation / transformation of TB pavilion at Tulcea Emergency Hospital to Axis Tulcea county council L a social accommodation center (residential care shelter) 5 Tulcea City and the Urban renewal interventions four towns in the DD M Region Create public ambulatory centers by rehabilitating closed hospital buildings in Babadag TAU, Sulina L Babadag and Sulina TAU Modernization of County Road a) DJ 229, Section I and II, Niculitel - intersection with DN22 – Zebil – Sarichioi Tulcea county council M (Int. DJ 222), km 3+300 - 54+886 County Emergency Provision of ambulances for emergency care Service (Serviciul de L b) DJ 222N, Tulcea – Pardina – Chilia Veche (km 0 – 66) Tulcea county council M Ambulanță Județean) c) Modernization of the regional transport infrastructure on the route Murighiol – Agighiol – Enisala – Babadag – Slava Rusă (km 62 and km 603 are proposed TAUs or associations for modernization on segments) there of; IDA ITI. For Tulcea county council L the 15 locations with I) DJ 222C Murighiol – Iazurile – Agighiol km 36+332- 63+105; Axis existing community 6 II) DJ 222 Agighiol – Sarichioi - Enisala, km 18+400-38+304 Provision of relevant, accessible and incentivized LLL programs in sustainable centers including: M tourism, agriculture, and fishery in Community Centers for Permanent Learning Beștepe, Ciucurova, III) DJ 223A Enisala – Babadag – Slava Rusă, km 54+724 - 38+798 Tulcea county council L Jijila, Luncavița, Peceneaga, Ceatalchioi, DJ 222, Două Cantoane – Beidaud – Sarighiol de Deal, Constanța county limit, Grindu, Jurilovca, Tulcea county council L km 72+130 - 94+518 Nufăru, Topolog f) DJ226: Section DN 22B – Corbu – Săcele – Istria – Mihai Viteazu L=46,2 km, Constanța County M km 0+000-5+500 km 12+400-53+105(Constanța) Council Creating an education & training network for students living in remote areas IDA ITI or an or with less than 2,000 inhabitants to provide access to primary and lower L Constanța County association of TAUs g) DJ 226A : Cetatea Histria – Cogealac – Râmnicu de Jos (Constanța) L Axis secondary quality education for all Council 10 Building cycling tracks from Chilia Veche to Sulina and from Sulina to Sf. Provide support for creating VET schools that are relevant, attractive and Gheorghe Chilia Veche, Sulina, Sf. inclusive, and which produce a workforce with knowledge & skills of international Gheorghe Individual TAUs L standard and relevance to the global demands of the nature-based tourism and recreational fishing market Tulcea county council, Design and implementation of a destination-wide program for product and DDBRA, Tourism H Axis attraction development Enhance kindergartens and nursery services through development, support, operators 7 rehabilitation, and provision of equipment to increase access to early childhood Individual TAUs L Tulcea, Sulina, Crișan, education and care (ECEC) Implementation of a region-wide program for beautification of settlements Sf. Gheorghe, Mila 23, M Chilia Veche and others Tulcea and Constanța Bring early school leavers back to school through “after school” and “second county school L Individual Territorial chance” programs (primary and gymnasium) Development and installation of visitor infrastructure H inspectorate Administrative Units 178 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 6. TYPES OF INTERVENTIONS POSSIBLE UNDER THE DANUBE DELTA ITI 179 Interventions that can be financed through ACOP OP Priority Axis Type of intervention Beneficiary H/M/L OP Priority Axis Type of intervention Beneficiary H/M/L All levels of government DDBRA, Formulating and implementing open data policies L In-depth institutional analysis (functional review) of DDBRA and the associated County, TAU, administrative reforms with the aim of improving its managerial performances, Prefecture and the legislative framework governing the management of DDBR area to All levels of allow local residents to become active participants in guarding and managing DDBRA H government DDBRA, the natural resource. Capacity building measures for the communities and Improvement of e-government services and local public monitoring systems M County, TAU, DDBRA. Prefecture Axis And intervention “Regulate or eliminate uncontrolled fish camping “ 2 Civil society and all Identification, development, and implementation of measures to increase SO levels of government Management plan and operation rules for the Danube Delta Biosphere Reserve DDBRA L transparency, inclusiveness, ethics and integrity, and reduce corruption in public M 2.2. DDBRA, County, LAU, authorities and institutions Prefecture Axis Implementation and development of a risk management system in the Danube DDBRA L Public administration 1 Delta Biosphere Reserve at all levels SO Increasing transparency in public administration through developing skills and DDBRA Revise regulations to improve the design of household subsidies to improve M 1.1. communication tools in public institutions affordability of services, and a more efficient targeting and use of financial and Central government L Prefecture natural resources Civil society Strengthen analytical capacity at DDNRI DDNRI M Axis 2 Review and revise regulations on taxes in the fishing and aquaculture industry – Improving access and quality of services provided by the judicial system All judicial entities L refers to intervention “Consider some tax incentives, like the elimination of the Central government M SO water tax” component of intervention “Improve aquaculture” 2.3. Natural capital accounting studies to determine the highest value uses of land DDBRA and County M and natural resources for optimal management councils Interventions that can be financed through HCOP Axis 1 Reforms to increase cost-effectiveness of sector governance / management OP Priority (hospital payment mechanism to incentivize public ambulatory, family doctors, Ministry of Health L Axis Type of intervention Beneficiary H/M/L SO and telemedicine systems) 1.2. Relevant education, training and Create a CC partnership platform, including a community-driven climate Implementation of a support mechanism for fostering entrepreneurship, certification entities, adaptation fund targeted at low income families, a micro grant or loan IDA ITI particularly innovative and sustainable nature- and culture-based tourism Public Employment M L mechanism to support SMEs, and a partnership facility to promote private and DDBRA MSME’s, and social tourism Office (PEO), public collaboration for innovative climate actions Employers, and selected other entities Climate change: Designate a unit within IDA ITI with a clear mandate to PEO, Employers address climate change issues (e.g. targeting of investment, providing applicant IDA ITI L information, coordinating the public and private sectors), with a small number of Relevant education, dedicated and knowledgeable staff, and capable of working cross-sector SME subsidies for job placement for NEETs in relevant fields training and L certification entities, Institutionalization of a Danube Delta Destination Management Organization PEO, and selected Axis IDA ITI H other entities (DMO) Axis 2 1 Relevant education, SO Strengthening local administrative capacity for strategic planning and Enlarge the access to vocational education for agriculture training and L 2.1. TAUs or associations budgeting, decision making, human resource management and monitoring and M certification entities thereof evaluation, for a better governance Provision of relevant, accessible and incentivized LLL programs, particularly in sustainable tourism, agriculture, and fishery in Community Centers for Improving strategic planning and budgeting based on the development of Permanent Learning All TAUs in DDR M management systems and tools to support economic and environmental goals Relevant education, Replace or modify cherhana-based system Individual TAUs M training and M including interventions certification entities “Development of a destination interpretation (learning) program” Create and maintain an inter-institutional environmental liability database for All relevant authorities L “Develop and roll out program for emergency and first aid for tourism workers, data sharing and better coordination across agencies for pollution prevention service providers“ 180 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 6. TYPES OF INTERVENTIONS POSSIBLE UNDER THE DANUBE DELTA ITI 181 OP Priority OP Priority Axis Type of intervention Beneficiary H/M/L Axis Type of intervention Beneficiary H/M/L Relevant education, training and Implementation of a support mechanism for fostering entrepreneurship, Certified training certification entities in particularly innovative and sustainable nature- and culture-based tourism M providers, school partnership with SPO MSME’s, and social tourism inspectorates, and other entities employment Employers agencies, private Provision of relevant, accessible and incentivized LLL programs primarily and public centers SPO, Employers on sustainable tourism, agriculture, and fishery in Community Centers for M for certification, Permanent Learning Relevant education, professional SME subsidies for job placement for NEETs in relevant fields training and L associations and certification entities in other relevant partnership with SPO education, training and Axis and other entities certification entities 3 Relevant education, Enlarge the access to vocational education for agriculture training and L certification entities Relevant education, Relevant education, Enlarge the access to vocational education for agriculture training and L training and Create partnerships between employers, E&T providers and research bodies certification entities certification entities to ensure a better performance of the education system in addressing labor L as well as PES in market needs partnership with relevant entities Education Provision of relevant, accessible and incentivized LLL programs, primarily Relevant education, Create an education & training network for students living in remote areas inspectorates, in in sustainable tourism, agriculture, and fishery in Community Centers for training and M or with less than 2,000 inhabitants to provide access to primary and lower L collaboration with Permanent Learning certification entities secondary quality education for all community orgs, TAUs Local authorities and NGOs in areas with Develop early childhood (0-6 years) institutional infrastructure in communities high share of Roma L with high share of Roma and other vulnerable groups and other vulnerable groups Training providers, Axis employers, industry Local authorities and 6 and commerce NGOs in areas with chambers, unions, Scaling up school mediators in schools with high percentage of Roma and other high share of Roma L Provide support for creating VET schools that are relevant, attractive and NGOs, commerce vulnerable groups and other vulnerable inclusive, and which produce a workforce with knowledge & skills of international chambers, counseling groups L standard and relevance to the global demands of the nature-based tourism and providers and other Local authorities and recreational fishing market relevant education, NGOs in areas with training and Implementing community grants for educational intervention high share of Roma L certification entities in and other vulnerable partnership with SPO groups and other entities Relevant TAUs Improve digital literacy among the Roma and other vulnerable groups (Territorial L Axis Administrative Units) 4 Public Local Enhance kindergartens and nursery services through development, support, Schools, TAUs, Increase the access to and the efficiency of social service provision Authorities, DGASPC, L rehabilitation, and provision of equipment to increase access to early childhood NGOs, education L NGOs education and care (ECEC) inspectorates NGOs, Provide area specific training for medical professionals Public Health L Directorate Schools, TAUs, Bring early school leavers back to school through school after school and second NGOs, NGOs, education L chance programs inspectorates Increase the prevalence of health programs focused on prevention and screening Public Health L Directorate Relevant entities in education, training and Create partnerships between employers, E&T providers, and research bodies Employers, E&T Create jobs for vulnerable groups by promoting the development of the social certification and the to ensure a better performance of the education system in addressing labor providers, research L L economy in relation with priority development sectors in DDBR Employment Agency market needs bodies, NGOs in partnership with relevant entities 182 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 6. TYPES OF INTERVENTIONS POSSIBLE UNDER THE DANUBE DELTA ITI 183 Interventions that can be financed through NRDP Interventions that can be financed through FMAOP OP Priority OP Priority Type of intervention Beneficiary Axis Type of intervention Beneficiary H/M/L Axis H/M/L Farmers / Support transition from commercial capture to recreational fishing Modernization of facilities for collection / processing / marketing of agricultural Cooperatives / M • Improve ecotourism venues to accommodate the needs of recreational produce Producer groups / fishers FLAGs H Enterprises • Promote and provide training in sustainable recreational fishing (catch-and- Farmers / release fishing etc.) Modernization of technical endowment of farms Cooperatives / L Measure Producer groups Priority 4 Fishery shelters with berthing facilities to support traditional commercial fishing 4 FLAGs H activity Farmers / Cooperatives / Breeding station for local fish species to sustain and restore populations of Producer groups FLAGs H Modernization / rehabilitation of irrigation infrastructure M declining wild species (perch, pike, wild carp, crucian carp, etc.) / water users associations or federations Developing the recreational / sports fisheries areas, including related camping FLAGs H facilities Take-up of farming activities by young generations Individuals M Priority Improve aquaculture Aquaculture units L Farmers / 2 Consolidation and modernization of small farms Cooperatives / M Producer groups Support small scale fish processing Creation of small businesses outside agriculture Individuals L Priority Diversity home and village-level fish processing by introducing small scale Producer organizations, canning units (for Gibel carp and other low-value fish like roach and bream) and L 5 private enterprises Individuals, NGOs, improve small scale smoking systems (smoking bags or small electric smokers); Measure Conservation of local patrimony and traditions (including handicrafts) L mainly to produce delicacies to visiting tourists SMEs 6 Individuals / Farmers Fostering organic farming activities in the Delta region / Cooperatives / M Producer groups Individuals / Farmers / Territorial- Afforestation of agricultural and non-agricultural land in the Danube Delta region L Administrative Units (TAUs) Communes and their associations according Modernization of rural infrastructure (water, sanitation, roads, schools, etc.) to the national which includes among others the following interventions: legislation in force. Provide support towards VET schools that are relevant, attractive and inclusive, and which produce a workforce with knowledge and skills of international NGOs – for standards and relevance to the global demands of the nature-based tourism and Measure investments in recreational fishing market M 7 the educational (kindergartens) and Enhance kindergartens and nursery services through development, support, social (nurseries rehabilitation, and provision of equipment to increase access to early childhood and after-school education and care (ECEC) infrastructure) infrastructure. Local Action Groups (GAL), including public Bottom-up initiatives for local development L authorities, NGOs, and SMEs Measure 19 Private companies, Encouraging energy efficiency and renewable energy uses Public authorities, L NGOs 184 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 7. HOW TO SET UP AN URBAN/METROPOLITAN DEVELOPMENT FUNDS 185 ANNEX 7. How to set up an Urban/Metropolitan Development Funds Steps to implement an Urban/Metropolitan Development Funds 1. Evaluation of UDF implementation, commissioned by the EIB 2. ROP review and amendment process (introducing repayable support for integrated urban development). 3. Conclusion of funding agreement (containing Holding Fund investment strategy) between the MA and the EIB, establishing the Holding Fund and the EIB as the Manager. In Poland, the Managing Authority used a Holding Fund that was responsible for selecting, funding and monitoring the performance of UDFs. The EIB was appointed as the Holding Fund manager and UDFs were selected in a tender procedure, with one lot covering support to region’s major cities, and another for other cities and towns.32 4. European Commission’s decision approving the amended ROP to foster FDU projects 5. EIB scoping study – regional market analysis, identifying potential projects and UDF candidates. 6. Establishment of an Investment Board. Agreed reporting procedures. 7. Preparing the UDFs selection procedure. 8. Beginning of UDFs selection procedure – the EIB opened the call for expression of interest for potential managers. 9. UDF selection decisions: The Holding Fund manager’s (EIB) selection of UDFs took place via a competitive procedure, with an invitation for expressions of interest and was based on evaluation of UDF business plan proposals. The most important criteria were the strategy, the institutional capacity to manage the UDF, experience in supporting development investments and additional funding for the proposed UDF. 10. Conclusion of operational agreement between the Holding Fund and the UDF The UDF has a decision-making body in the form of an Investment Committee / Board, whose tasks include granting final acceptance on signature of investment agreements. An important governance arrangement is UDF’s monthly and quarterly performance reporting to the EIB as the Holding Fund manager. 11. Implementation of the first FDU-based projects as pilot projects to be followed by the metropolitan/urban areas of Romania 32 Case study - Urban Development Fund in Pomorskie, EIB, 2015 (Source: https://www.fi-compass.eu) 186 OUTPUT 4 / ACTIVITY 3 - ORGANIZATIONAL MODELS FOR INTERJURISDICTIONAL AGREEMENTS ANNEX 7. HOW TO SET UP AN URBAN/METROPOLITAN DEVELOPMENT FUNDS 187 Advantages of UDF implementation for the 2021-2027 Main challenges of UDF Implementation during the 2021- Programming Period 2027 programming period UDFs can provide increased financial and socio-economic efficiency of investments in the public sector. Implementing a JESSICA model-based UDF instrument has the following advantages: 1. Overcoming lack of operational experience related to investment funds of local, as well as central authorities in charge of programming for the next financial exercise. 1. Gaining first-hand experience: establishing and implementing EIB-managed Holding Fund and a pilot UDF would provide an ideal opportunity for local authorities to develop 2. The technical setup of urban development funds, particularly the process of learning the ability to manage loan mechanisms in a revolving fund structure, with an experienced and understanding the financial mechanisms by the key stakeholders (local authorities private sector partner (such as a bank). and communities, central authorities, management authority, private actors) is one of 2. Financial leverage: attracting additional public and private resources for urban the main challenges to UDF implementation in Romania. The partners must develop infrastructure development in the metropolitan area, supplementing the initial grant a thorough understanding of the procedures, create urban investment cycle suitable funding for projects complying with ROP measures and focusing on integrated urban strategies, integrated plans, projects and project portfolios and co-operate with MA’s development projects, but not covered through traditional sources of funding. to incorporate them into the relevant OPs in order to fund them through JESSICA-like financial instruments. 3. Revolving nature of funds: profitability of projects is required for the repayment of financing, while maintaining a social focus on the needs of the local community. Historical 3. Shifting the perception of EU funding away from awarding grants, towards being buildings, brownfields, parts of cities that would require investments in regeneration are utilized in a more cost-efficient and income generating way. sources of high socio-economic value, generating financial surplus which is returned to the UDF and used to finance other financially viable projects with a high social impact. 4. Lack of developed practice and dedicated legislation for private-public partnerships (PPPs) appears to be one of the most important challenges for ensuring the success of 4. Mentality and attitude shift in public institutions previously dealing only with the an UDF, according to the JESSICA Evaluation Study performed in 2010 distribution of grants towards cost-efficiency, generation of income from investments, and becoming more open to private investors as partners, due to the repayable nature Public-Private Partnerships and Legal Frameworks Public-Private and Public-Public of the complementary financing. Partnership mechanisms are both widely used across the EU as possible UDF structures for deploying JESSICA model-based investment funds. 5. Promoting an integrated, strategic focus for urban development policies: the UDF selected projects are required to fall under an integrated urban development strategy However, “under Romanian ROP regulations for 2007-2013, PPPs were not eligible for with social impact in the region, with regional authorities managing structural funds implementation under a UDF, as the applicant for structural funds must be a public sector more efficiently. organization. This reality, combined with a lack of experience using PPPs in Romania, present both opportunities and challenges for ensuring the success of establishing a UDF.” 6. UDF implementation does not raise level of public debt and can contribute to reducing it: legal limitations related to public indebtedness level do not apply in the Therefore, according to the evaluation study, “financial instruments implementation has context of UDFs (JESSICA models). As such, loans/guarantees to ensure pre-financing to first be preceded by amendment of current OP regulations to allow PPP mechanisms and/or co-financing of projects benefiting from the external non-reimbursable EU funds between local authorities and private operators to act as JESSICA UDFs. This reality, are exempted from the 30% limit on the total annual debt. According to the JESSICA combined with a lack of experience using PPPs in Romania, present both opportunities Evaluation Study, clarifications provided by the norms of application for the Local and challenges for ensuring the success of establishing a UDF”.35 Public Finance Law no. 273/2006 also precludes loans contracted/ guaranteed by local authorities through a JESSICA mechanism from the 30% limit.33 “The current lack of developed practice and dedicated legislation for PPPs appears to be one of the most important challenges for ensuring the success of an UDF. According to 7. Capacity of local public administration to provide equity, loan guarantees and the workings of the URBACT Local Support Group in Brasov GP the private investors have other non-grant financing: “Furthermore, in terms of equity or in-kind contribution, the expressed that “there is no real culture of partnership and mutual confidence between administrative territorial units can approve collaborative support or associations for the the public authorities, private sector and banks; public-private partnerships are known development of local public works and services. They can decide to: but not a very popular practice, due to the past failures; consultation and cooperation • participate with equity or in-kind contributions to create commercial enterprises with local government is more often only for façade” and local governments reaffirmed or public interest services (at local or county level); too that <>.”36 could implement development projects of area or regional interest.”34 5. 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