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									CEI-EBRD Cooperation Programme   112 Technical cooperation




 15 CEI-EBRD Cooperation Programme
    The cooperation between the Central
    European Initiative (CEI) and the EBRD
    has created an atmosphere of mutual
    understanding, in which large national
    projects and international programmes
    can be discussed, planned, financed,
    implemented and evaluated.
                                                     113 Technical cooperation




CEI member countries
Albania, Austria, Belarus, Bosnia and Herzegovina,
Bulgaria, Croatia, Czech Republic, Hungary,
Italy, FYR Macedonia, Moldova, Poland, Romania,                                                                      •Minsk
Slovak Republic, Slovenia, Ukraine,
Federal Republic of Yugoslavia.
                                                                                              Warsaw•

                                                                                                                        Kiev•
                                                                                    •Prague


                                                                                 Vienna•   •Bratislava
                                                                                               •Budapest                •Chisinau
                                                                       Ljubljana
                                                                       Trieste• •      •Zagreb
                                                                                                 •Belgrade          •Bucharest
                                                                                           •Sarajevo
                                                                         •Rome                             •Sofia
                                                                                                       •Skopje
                                                                                           Tirana•
CEI-EBRD Cooperation Programme   114 Technical cooperation




 The Secretariat for CEI Projects at the
 EBRD can assist in the preparation of
 requests for funding TC activities, using
 the CEI trust fund at the EBRD.




                                 The Central European Initiative (CEI) aims at        In November 1989, in Budapest, the Deputy
                                 European integration and supports its member         Prime Ministers and Ministers of Foreign
                                 countries, which are not yet EU members, in their    Affairs of Austria, Hungary, Italy and
                                 approach to the EU. It also contributes to the       Yugoslavia gave birth to the Quadragonale.
                                 process of transition in the member states and       It later became the Pentagonal, the Hexagonal
                                 to the development of regional infrastructure.       and finally the Central European Initiative.
                                 CEI brings countries and institutions together
                                 in a spirit of flexible and pragmatic regional       The operational structure of the CEI includes
                                 cooperation. The Initiative has created an           regular meetings of Prime Ministers (Summit
                                 atmosphere of mutual understanding, in which         Meeting) and of Ministers of Foreign Affairs
                                 large national projects and international            (Summit Economic Forum - SEF), National
                                 programmes can be discussed, planned,                Co-ordinators, Working Groups (also at
                                 studied, financed, implemented and evaluated.        ministerial level) and Project Groups.

                                 The CEI’s objectives are embodied in a Plan          The CEI is directed by the Presidency, which
                                 of Action that encompasses activities,               rotates yearly among the member countries.
                                 programmes and projects which contribute to          It is assisted, in all its activities, by the CEI
                                 the Initiative strategy of cohesion and solidarity   Executive Secretariat located in Trieste, Italy.
                                 in Europe. The objectives are:                       The operational body of the CEI devoted to the
                                 – strengthening cooperation between                  economic dimension is the Secretariat for CEI
                                    member states;                                    Projects based at the EBRD and in Trieste.
                                 – increasing the participation of all member         The main task of the Secretariat is to assist
                                    states in the process of European integration;    the transformation of project ideas into
                                 – enhancing the economic transformation of           bankable projects.
                                    the CEI countries in transition;
                                 – reducing the impact of existing and possible       CEI activities are paid for by voluntary
                                    emerging differences and disparities between      contributions of member countries. The largest
                                    CEI member states, avoiding the creation of       contribution is made by the Italian Government
                                    new barriers and divisions in Europe;             through a special CEI trust fund at the EBRD.
                                 – orienting future activities particularly
                                    towards assistance to the least advanced          CEI-EBRD cooperation
                                    member countries and those having the             In 1991, the two newly established
                                    greatest need for accelerated economic            organisations, the CEI (Hexagonal at the time)
                                    development or recovery.                          and the EBRD, agreed on an operational link
                                                                                      with each other, based on their complementary
                                                                                      objectives and functions.
                                                       115 Technical cooperation




                                                       Table 15.1
                                                       Current and completed CEI projects
                                                       Project/Programme                                                                    CEI Fund contribution
                                                                                                                                                          million
                                                       Ukraine: Kiev to Western border study                                                                 0.8
                                                       CETIR: Central European Transport Information Reporting                                               1.7
                                                       Ukraine: Air Navigation Project                                                                       0.2
                                                       Sarajevo Airport Master Plan and Training                                                             0.2
                                                       Sarajevo Airport lighting and equipment                                                               0.4
                                                       Albania CEI Micro-financing Office (with World Bank, UNECE)                                           0.3
                                                       Procurement assistance to the EBRD Transport Team                                                     0.1
                                                       Bosnia and Herzegovina: Electric Power System Reconstruction                                          0.5
                                                       CEI Road Rehabilitation of Corridor VIII in Albania                                                   1.7
                                                       CEI joint international events                                                                        0.6
                                                       Commercial law training I                                                                             2.3
                                                       Commercial law training II                                                                            1.0
                                                       BOLD and CEInet                                                                                       0.4
                                                       Assistance to the agricultural wholesale market in Poland (with UNECE)                                0.2
                                                       Agricultural Wholesale Markets – Croatia                                                              2.0
                                                       Romanian Railways Cooperation Project                                                                 0.4
                                                       Business Advisory Services (CEI BAS) – Croatia                                                        1.1




The CEI can benefit from the substantial funds         – a “Fund Agreement” between the                       Project identification and preparation assistance
available through the EBRD for “bankable                 Government of Italy and the EBRD on a CEI            The “CEI Project Opportunity Methodology”
projects” of interest to the CEI. On the other hand,     Fund, 14 April 1992, amended on 23 July              is a procedure for documenting “CEI project
the requirements for the EBRD to be financially          1997 (other funds can be similarly made              ideas or opportunities” useful for developing
self-sustainable and at the same time work in            available by other donors to be managed by           these projects within the CEI and for
many financially poor transition countries had           the Secretariat for CEI Projects at the EBRD).       submitting project ideas/ proposals to the
created a special need for additional support and                                                             EBRD or to other institutions.
grant funds. CEI cooperation was most valuable as      Secretariat for CEI Projects at the EBRD
the CEI can finance project preparation on a grant     The “Secretariat for CEI Projects at the EBRD”         The emphasis of this procedure, and certainly
basis. Later, at the construction stage, the CEI can   (CEI-EBRD Secretariat) advises the CEI                 the first step for cooperation with IFIs, is the
arrange for implementation support, including the      committees on investment projects, develops            identification of an “Investment Project”.
support of government or relevant institutions.        methodology and technical cooperation and              Initially, the investment should prove interesting
                                                       supports the CEI strategies for economic               to the EBRD and/or other IFIs on the basis of
The CEI-EBRD Cooperation Programme is                  sectors and infrastructure.                            information given on the Project Outline Profile
made effective by:                                                                                            (POP) and Organisation Profile (OP) forms.
– a “Secretariat for CEI Projects” with the task       The main objectives of the Secretariat
  of helping project ideas become bankable             can be summarised as:                                  The next stage is to turn the investment project
  projects, with an office at the EBRD in              – project preparation assistance to                    ideas into a formal proposal. Project preparation
  London, and an office in Trieste in cooperation        transform CEI investment project                     may often require technical cooperation,
  with the CEI Executive Secretariat in Trieste;         ideas into bankable projects for the                 including activities such as surveys, feasibility
– a CEI trust fund at the EBRD, provided by              EBRD, other IFIs and local institutions;             studies, design work, environmental impact,
  the Italian Government (totalling up to              – technical cooperation support for the                assessment technology transfer, institutional
  US$ 25 million, 80 per cent spent up to now)           EBRD investment projects in most of                  strengthening and implementation assistance
  and managed by the Secretariat for CEI                 the CEI member states (e.g. studies,                 (e.g. information systems, seminars, training).
  Projects, with the possibility of funding              design, implementation assistance);
  projects and activities from other sources also;     – system development and institutional                 The Secretariat for CEI Projects at the EBRD can
– a “Secretariat Agreement”, initially called            strengthening in support of more                     assist in the preparation of requests for funding
  the “Agreement on the Establishment                    general investment programmes;                       these TC activities, using the CEI trust fund at
  at the EBRD of a Secretariat for Hexagonal           – development of technical skills in                   the EBRD or other sources. The Secretariat can
  Projects”, 12 November 1991. This was                  CEI countries through training                       also provide support in the implementation
  later replaced by the Secretariat Agreement            programmes and international events;                 stages of the investment projects using CEI
  between the CEI and the EBRD, 21 July                – co-financing of investment                           funding and approval procedures. All TC
  1998. This Agreement defines the structure             projects using CEI funds.                            activities funded through the CEI Programme
  of the Secretariat and envisages financial                                                                  are subject to the EBRD’s controls and policies
  contributions to it from any sources.                                                                       regarding the use of donor funds.
CEI-EBRD Cooperation Programme   116 Technical cooperation




                                 Examples of technical cooperation projects       Business Advisory Services Programme (BAS)
                                 – CEI road rehabilitation of Corridor            for south-east Europe
                                   VIII in Albania A CEI-EBRD expert has          A Business Advisory Services Programme
                                   contributed to the identification of road      (BAS) is currently established in south-east
                                   projects in Albania, and the CEI has offered   Europe, with assistance from the CEI, KfW
                                   a grant contribution to the Albanian road      and EU Phare. It is modelled on a project
                                   section of Corridor VIII.                      established by the EBRD in the Baltic states
                                 – Procurement assistance for transport           which, since 1995, has provided practical
                                   projects CEI-funded expertise has been         business advice to SMEs. Its objective is to
                                   provided to the EBRD in the procurement        assist enterprises to develop their business,
                                   stages of:                                     make the transition to a market-driven
                                   – railways projects in Bulgaria,               economy and increase their competitiveness.
                                     Czech Republic, Hungary,                     A secondary objective is to build up the
                                     Poland, Romania and Slovenia;                capabilities of local consultancy firms. Further
                                   – road projects in Belarus, Croatia,           information on BAS is contained in Chapter 5.
                                     Moldova, Poland, Romania and Slovenia;
                                   – air transport projects in Croatia            A first office became operational in Zagreb
                                     and FYR Macedonia.                           during summer 2000. A second office is about
                                 – Bosnia and Herzegovina power system            to be opened in Ljubljana and a third one in
                                   reconstruction The EBRD Emergency              Sarajevo. An expansion into FYR Macedonia,
                                   Power System Reconstruction Programme          Romania or Bulgaria is planned for spring
                                   in Bosnia and Herzegovina involved             2001. Over an initial two-year period, it is
                                   generation, transmission, distribution and     expected that approximately 400 SMEs will
                                   metering of electric power. This included      be assisted in the four countries.
                                   the rehabilitation of three 25 MW generating
                                   units and the Mostar hydro plant power         Training programmes and international events 2000
                                   switchyard. The programme required             Assistance to Belarus on agriculture
                                   funding equivalent to US$ 110 million.         The objective of this TC project is to share
                                   CEI funding has been made available for        recent experience in agriculture reforms
                                   technical cooperation activities. Three        and in greater efficiency and productivity
                                   CEI experts have been engaged in the           of the sector. Agribusiness companies from
                                   engineering work in Sarajevo, and a CEI        the Gomel region have learned about Czech
                                   vehicle and computers have been provided.      agricultural expertise as part of a training
                                                                                  programme for approximately 100 agricultural




 The agricultural wholesale markets project
 in Croatia aims to improve the wholesaling
 infrastructure for fresh food produce in the
 country's largest cities.
                                                  117 Technical cooperation




managers from the Gomel region. This is           – providing practical legal training for lawyers   CEI joint international events
organised with the support of the CEI and           in the CEI region, which will equip them to      The Secretariat for CEI Projects at the EBRD
the Czech Republic’s National Training Fund,        deal with the commercial and financial law       has supported a number of international events
in cooperation with the Gomel Regional              problems in transition economies;                dealing with priority themes of the CEI.
Economic Development Agency (Belarus)             – giving “on the job” training and the
and Czech agribusiness companies. A centre of       development of training know-how;                Examples of CEI international events
advanced management with a special priority       – facilitating the successful implementation       organised in 2000 include:
on promoting environment-friendly production        of reformed laws, which will create a more       – International Workshop: Financing for
and healthcare is also being established.           favourable investment environment and               SMEs October 2000, Bled, Slovenia;
                                                    speed up the transition process.                 – Workshop: Harmonisation laws
Capacity sharing in training                                                                            and standards in energy saving,
A capacity-sharing programme promotes             The first Commercial Law Training Project began       September 2000;
participation of all CEI member countries in      in 1994 and ended in 1997. It encompassed          – Ukraine tax system and tax reform
existing training events in any CEI country.      17 workshops in CEI member countries and              in modern market economies,
A comprehensive programme has been                17 fellowships for longer training programmes.        September 2000, Lodz, Poland;
prepared by the Working Group chaired by          The second project began in August 1997 and        – Summer School of Architecture 2000,
the Czech Republic. Several seminars have         was completed in 2000 with a total of 13 in-          July 2000, Skopje, FYR Macedonia;
been supported by the Czech Government on         country workshops.                                 – Partner Finding Seminar,
transition policies, law, business, management                                                          June 2000, Budapest, Hungary;
and finance. Individual CEI countries have        CEI wholesale markets foundation                   – Preparatory High-Level Expert
sponsored training programmes relevant to         A number of newly established agricultural            Meeting under the auspices of ECE on
their CEI responsibilities.                       wholesale markets in central Europe intend to         “Comprehensive Joint Environmental
                                                  strengthen their cooperation by forming a CEI         Protection Programme for the Adriatic-
Commercial law training programme                 Wholesale Markets Foundation. This is supported       Ionian Region”, Croatia, May 2000;
A five-year training programme is being           by the EBRD through its Agribusiness Team,         – International Seminar on Public Diplomacy
managed by the EBRD and implemented by the        and by the CEI through its Agriculture Working        and Media, April 2000, Dubrovnik, Croatia;
International Development Law Institute (IDLI),   Group and its Secretariat for CEI Projects at      – International Conference on “SME Legal
Rome. Under the programme, commercial and         the EBRD. In the course of this preparatory           Aspects and Best Practice in Simplification
financial law training has been provided for      work the CEI has also assisted the planning and       of the SME Legal Environment” (organised
local lawyers from law firms, financial           development of the Warsaw wholesale market.           by the CEI Working Group on SMEs),
institutions, corporations, governmental bodies   The Foundation is comprised of the wholesale          February 2000, Slovenia (cooperation
and the judiciary. The main objective of the      markets from participating CEI countries,             with UNECE).
project is to facilitate the successful           sponsors, cooperating partners, and observers,
implementation of reformed laws by:               including markets from other countries.




Case study – Agricultural wholesale markets, Croatia
In June 1998, the CEI created a facility of US$ 1.8 million for the development of agricultural
wholesale markets in Croatia. The purpose of the proposed reimbursable CEI facility is to
finance detailed design and engineering supervision of six wholesale market infrastructure
investments in Croatia. The main objective is to perform general engineering services for the
market companies. This includes detailed engineering design for the market and participation
in the procurement process for the civil works contracts, including the preparation of the tender
documents and supervision of civil works.

Overall, the project aims to improve the wholesaling infrastructure for fresh food produce in
Croatia’s largest cities. Its main objectives are to provide a competitive market place for
traders in fresh produce, to lower the overall distribution margins and transaction costs to
benefit both producers and consumers, to help local producers to market their products, and to
enhance the competitiveness of Croatian produce in both domestic and international markets.
CEI-EBRD Cooperation Programme   118 Technical cooperation




 The first Commercial Law Training Project
 encompassed 17 workshops in CEI member
 countries and 17 fellowships for longer training
 programmes. The second project began in
 August 1997 and was completed in 2000
 with a total of 13 in-country workshops.




                                 CEI systems                                          countries, international organisations, potential
                                 CETIR – Central European Transport                   sponsors, consultants, suppliers and other
                                 Information Reporting System                         relevant parties. The pages will improve
                                 The Central European Transport Information           knowledge and understanding of the CEI
                                 Reporting system (CETIR) is a large technical        structure, activities, opportunities and needs
                                 cooperation project organised by the CEI,            among those organisations that may want to
                                 using consultants and cooperating institutions       invest, in some way, in CEI countries.
                                 in CEI countries. The project will oversee the
                                 development of a comprehensive transport             The procedures for CEInet members to access
                                 database and transport planning methodology          the CEI site will also provide access to World
                                 suitable for the region. It will update the system   Bank IPAnet information on the internet.
                                 on a regular basis. Users will be provided with a    All investment agencies, sponsors and
                                 full package of support, including data disks,       suppliers (IPAnet users and CEInet users) can
                                 software, hardware and training.                     benefit from this opportunity to make contact
                                                                                      with each other.
                                 CETIR will monitor national and international
                                 transport systems in CEI countries. It will be       This virtual link between IPAnet and CEInet
                                 applied to long-distance transport planning for      allows better exposure of CEI information to
                                 the various modes, particularly to international     the World Wide Web audience. CEInet is fully
                                 multimodal corridors.                                operational and freely accessible to internet
                                                                                      users. All the basic CEI information
                                 CEI computer networks                                is available. The “dynamic” information
                                 (BOLD, CEInet, related systems)                      on organisations, projects and news is, at
                                 Several CEI systems have been developed and/or       this initial stage, quite limited. It is, however,
                                 are under development to provide information         continuously updated in order to host
                                 and communication networks to business people,       numerous requests and new information.
                                 government officials, financial operators and        Organisations offering project-oriented
                                 consultants. These networks will promote their       services and institutional strengthening are
                                 interests, projects events and cooperation, and      particularly welcome to have an entry in the
                                 will also facilitate the exchange of information.    CEI Directory of experts. A similar invitation is
                                                                                      extended to organisations wishing to promote
                                 The CEInet pages will serve as an internet           project ideas, to search for partners, or to
                                 communication vehicle to link CEI member             advertise training events.
                                                    119 Technical cooperation




Project Opportunity Methodology (POM)               The forum, held at the Hungarian Cultural          companies wishing to raise their profile in
includes a documents system (forms and              Foundation and the Hilton Hotel in the Castle      the central European community of investors.
examples) and computer presentations on             district of Buda, had over 1,000 participants.
the CEInet. The procedure allows for initial        Attendees included those from the European         The political summit of Prime Ministers and
“project ideas” to be developed into investment     business and financial communities,                Ministers of Foreign Affairs and economic
proposals by contacting potential project           government representatives, NGOs and               sectors took place on the final morning of the
partners and financial sources.                     individual entrepreneurs. The forum was            event, and was attended by 17 Prime Ministers
                                                    organised into a series of focused sessions with   and/or their representatives. The summit,
Third CEI Summit Economic Forum 2000                panels, seminars, project presentations and        chaired by Hungarian PM Viktor Orban,
The CEI held its third Summit Economic              interest groups. Principal themes ranged from      reported to be the most successful CEI summit
Forum in Budapest in November 2000. This            SME development, the Stability Pact,               so far. According to PM Orban, it was the first
annual event represents the highlight of the        infrastructure and transport projects to IFIs      time that “…the Chambers of Commerce of
political calendar for the CEI, as it provides an   and information technology projects. Speakers      each CEI country formulated a framework
unparalleled opportunity for meetings between       were drawn from a wide range of institutions,      and document as the basis of their future
the CEI’s 17 member countries of central            notably the EBRD, UNECE, Central European          co-operation”. A major outcome of the summit
Europe and investors from all over the world.       Chambers of Commerce, the World Bank, EU,          was the admission of FR Yugoslavia as a new
Countries represented at the four-day event in      IFC, OECD, Stability Pact, Investment              member of the CEI.
Budapest were Albania, Austria, Belarus,            Promotion Agencies along with political and
Bosnia and Herzegovina, Bulgaria, Croatia,          business representatives.                          The Forum in 2001 will be held in Trieste, Italy,
the Czech Republic, Hungary, Italy, FYR                                                                as the CEI Presidency is taken over by Italy.
Macedonia, Moldova, Poland, Romania,                In addition to the timetabled sessions,
the Slovak Republic, Slovenia, Ukraine              participants were encouraged to set up ad-hoc
and FR Yugoslavia.                                  bilateral meetings, and participate in
                                                    networking of a more informal nature.
This year’s theme of “Euroregions” provided         Opportunities for such networking were
a springboard for a host of seminars and            praised as a major factor in the success of
discussion groups on this highly topical            the forum. A project room exhibited details
geopolitical issue. The four-day event was          of projects, both completed and in progress,
divided in two, with an economic forum and          where participants were also encouraged to
a separate political summit of the 17 CEI           learn about CEI project opportunities and
countries’ Heads of Government.                     methodologies. There were also exhibition
                                                    stands, which served as promotion for
                                                    countries, international organisations and

								
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