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CHALLENGES ADDRESSED TO THE INVESTMENT
PROJECT IN CONTEXT OF THE PROGRAM OF CROSS-BORDER COOPERATION INTERREG V-A IN ROMANIA - BULGARIA, 2014-2020
© Zlateva R.St.*
«Demetra Development» LTD, Republic of Bulgaria, Shumen
This paper outlines the present and the future challenges that investment project realized by The Program for cross-border cooperation Interreg V-A Romania - Bulgaria 2014-2020 must resolve. Attention is spent on some characteristics and parameters of the investment project, reasonable with The European Union standards and the program. Emphasizing the contribution of investment projects for intelligent, static and assimilating growth and realizes economic, social and territorial approximation of the cross border areas.
Keywords: investments, project, investment project, cross border cooperation.
The cross border cooperation (CBC) between neighboring regions in Europe has a long tradition. For Bulgaria and Romania it got a new dimensions with the membership of both countries in the European Union and having access to the Structural investments of the nation.
Funding is made on a project basic and in this case the projects are within a predefined and approved by the European Commission programs.
The programs for territorial cooperation include the programs for cross border cooperation which have an effect of a betters in border regions by collaborative projects with the cross border impact.
The main motives are for cooperation in a system that is managed are:
- Encouraging a intelligent, strong and sustainable growth in cross border area;
- Gaining economic, social and territorial coupling of the cross border areas;
- Getting the results of the national marginal standing and insulation;
- Strengthening of the institutional and administrative capacity on all levels and in all areas as well.
The data for the undertaking to the Program for cross border cooperation Romania - Bulgaria 2007-2013 shows that the beneficiaries insufficiently know the basic characteristics of the investment process and the specifics of the investment in cross border areas. From the presented 392 projects, contracts are sighed for 179 or this is 45,66 % of the showed proposed. Meanwhile 8 are ended and
* PhD (доктор).
the percent for negotiated projects got to 41,2. 20,45 % of the selected projects finished without sighing the contract. The absorption rate in the beginning of 2015 is 68,08 % [1]. This applies to the use of the euro fund as well. At the moment Bulgaria is on 23rd position from 28th country members of the European Union. In our country the payout funds are 65,5 % from the provided ones. After us on 27th position ranks Romania with 56,3 % [2].
The object of the present development is to outline the challenges that must be settled and to make a review on the Program for cross border cooperation In-terreg V-A Romania -Bulgaria 2014-2020, for better opportunities of the beneficiaries to take a competent decisions in preparations of investments projects. In this case are formulated the following tasks:
- To be analyzed the essence characteristics of the investment projects.
- To specify the directivity of the investment projects by Interreg V-A Romania -Bulgaria 2014-2020.
- To define the main terms and conditions for getting subsides for the realization of the investment project under the Program.
The Program for cross border cooperation Interreg V-A Romania - Bulgaria 2014-2020 describes the strategy «Europe 2020» - in a way of its leading and interconnected targets for European Union, which covers the three priorities about smart, sustainable and inclusive growth:
- Employment 75 % of the population of age 20 to 64 years;
- Investment in research and development 3 % from the BVP of the European Union;
- Achieving on targets «20/20/20» climate / energy (including reducing emissions by an additional 30 %, if the conditions are OK);
- 10 % less leavers school before the end and at least 40 % part of the young generation to finish higher education;
- Decrease of the number of the people threatened by the poverty with 20 million people [3, p. 5].
In this context the Program for cross border cooperation intent reaching of concrete and measurable effects, resulting in creating area, suitable for living, studying, working, visiting and investing.
Interreg V-A Romania - Bulgaria 2014-2020 covers 19, 8 % from the area of the two countries (69285 sq km), 57, 75 % from the zone belongs to Romania and 43,25 % of this belonging to Bulgaria. There is a budget of 258, 4 millions euro available to 7 districts in Romania (Konstantsa, Dolj, OLt, Teleorman, Gurgevo and Kalarash) and 8 districts from Bulgaria (Vidin, Vratsa, Montana, Pleven, Ve-liko Tarnovo, Ruse, Silistra and Dobrich). 215, 7 millions euro are from the European fund for regional development [4].
The Program for cross border cooperation is a leading force to resolve current and future challenges in the following areas:
- The climate changes, because in Romanian - Bulgarian cross border district all zones have small capacity for adaptation to the climate change;
- Surroundings, because of the geography, ecological structure of the region and the overall evolution, from ethnographic and historical point of view, the only and consistent cross border approach would be extremely valuable in terms of conservation and use of natural and cultural heritage;
- The economical development and social reconciliation, because one intelligent and bearable cross border region must be unique to encourage initiatives, to make finally changes in conception for cooperation, that relates the two countries;
- Accessibility, because generally, vehicles are the most used transport and in some section, the bad state of the roads create serious difficulties for the winter maintenance and isolation villages. Besides, they are exposed to floods and much of them have short capacity, which make the traffic and the time for travelling is longer, expenses for the exploitation of the vehicle, accidents and environmental pollution. In the same time, the lack of connection between Danube and the inside of the country is the main difficulty for development of the zones near the river;
- The management - the reason is strengthening of the institutional and administrative capacity at all levels and all areas and boasting the goal management is a cardinal goal of the regulation of the European union, for the European structural and Cohesion funds, and this might bring up the transfer of knowledge and cooperation between public and private sector [4].
The real and financial sector of the Economy directing the investment in different directions. Economic investments are defined as investments in assets which produce goods or services for profit commensurate with the risk taken. This type of investments suggest the getting of the real assets that is way they called real investments. Financial investments is the purchase of an assets in the form of valuable paper that will bring profit to the investor. The investor has not a direct control over then assets. He takes the whole risk, from the transaction and seeking to maximize his profit. In financial investments is not necessary to make a new productive assets such as those typical for the economic investments [5, p. 11-12]. Following the tasks which are placed, this study only deals with economical investments, because the term «Investment project» in the program is based on those investments and allows to analyze the investment process and investment management, in making decision in a considerably wider context. In this aspect the essential lineament of the investment can be summarized as follows:
- The investment is putting on something present and certainly with the expectation to get an income in future, which is not a certain income.
- Any expense which is made with expectation to rise more money later, than investing now called capital investment project.
- The investment cannot be returned back or their possible withdrawal could be slow or with loss.
- The process of determining where to invest capital is wider than making the decision itself which fixed assets to be augured.
- In the assessments for the future there is a risk as a consequence of long lasting and uncertainly about the future events. This cause the need to identify risk factors, which have close points with the investment idea to assess and develop a program for their management.
- The assessment of one investment, has to be made basically on the principle of the pure present value-this value of investment in the marketplace should not exceed expenses made for her [6, p. 190-214].
There a lot of definitions of the context of the gaining ground in the context of the characteristics of project management, so on practice every unusual activity can be used as a project. Its characterized with duration, budget, quality, human and material technical resources, communications and risk. In principle, these parameters are limitations whit which to comply. The cycle of the project is a series of necessary and pre-defined activities carried out within the framework of the individual projects. Its usually divided into the following phases: programming, identification, formulation, preliminary evaluation, funding, realizing and subsequent evaluation [7, p. 276]. In this typical for all projects are similar phases in the life cycles and unique processes of management.
In the «Guide for the analysis cost - benefits of investment project financed by the structural funds and the Cohesion fund», European commission takes the project to «investment activity for which are spent funds (make expenses) for the creation of capital assets that generate benefits for a long period of time. Therefore the project is a specific activity with start and end, which is directed to achieving a specific target» [7, p. 274].
Other sources [8, p.5] indicate that an investment project is the realization of all the activities associated with the emergence of the investment idea to the time of its realization within the planed budget, duration and quality. Investment project are classified as such for:
- Acquisition, construction or repair of a new building, facility, infrastructure;
- Acquisition, construction or change of the information or communication system;
- Coordinated implementation of social heath, educational, cultural, scientific, religious etc., type activities (programs) having a common goal and requiring time budget and necessary quality.
Synthesizing the above, the term «investment project» can be presented as:
- word for the all activities for creating a product / service in different directions, leading to an acquisition assets;
- collectivity for the system of documents necessary for a planned implementation of the activities;
- economic integral endeavor whit acceptable cost, putting in material or non-material assets.
The strategy of the program Romania - Bulgaria is based on thematic objectives included in priority axs, in accordance with established problems and which are most appropriate for consideration by cross border cooperation. For each thematic purpose are selected investments priorities and have specific targets. At the disposal of the thematic targets in three axs are provided 82 % of the money from the funds in keeping with requirements for concentration: Priority axis one «One well connected region» - 38 %, Priority axis two «One green region» - 25 % and Priority axis three «One safe region» - 19 %. For the purposes of priority axis four «One qualified and whole region» are provided - 7 % and for Priority axis five «One efficient region» - 5 % of the funds. This five priority axis funded projects applied by a regular candidates with the 6th axis «Technical assistance» (6 %) promising a proper functioning of the parts of the program [4].
The Program provides specific targets to be realized by non-structural «soft» infrastructure «hard» and «integrated» measures which are an expression of type of supported investment action.
Target financing provides certain positive impulses to cross-border projects in accordance with the investment priorities of the Program. Investments of the beneficiaries in the first axis of the programme should be related, but not limited, to:
- Developing joint solutions and strategies for connecting secondary and tertiary nodes to TEN-T network and to reduce transportation time and improving the public mobility services;
- Construction and modernization of road infrastructure, improving the cross-border secondary and tertiary nodes connections to TEN-T infrastructure;
- Exchanging experience and knowledge for improving local public transport and traffic safety;
- Plans and integrated measures to improve navigation conditions;
- Coordinated strategies, tools and joint pilot applications;
- Raising awareness and exchanging experiences to improve the capacity of the target groups to improve navigability;
- Improving freight and passenger on river and sea transport.
The second axis «A green region» focuses investments on:
- Joint information sessions and cultural events and events for promotion and development of natural and cultural heritage;
- Joint and sustainable touristic infrastructure for cultural monuments to develop natural and cultural heritage;
- Joint studies, strategies, management plans etc. in the field of common preservation, development and utilisation of cultural and natural heritage;
- Developing common tourism products and services based on the natural and cultural heritage and joint promotion;
- Mapping and spatial planning, exchange of information, knowledge transfer on protecting / preserving ecosystems;
- Campaigns for raising awareness, scientific researches, common strategies and plans for management of protected sites and species of the NATURA 2000 network;
- Coordinated cross-border infrastructure and green infrastructure for biodiversity conservation and Natura 2000 sites;
- Equipment for the protection of biodiversity and Natura 2000 sites.
Within the third axis «A safe region» the supported investment activities are
related to the following achievements:
- Joint strategies for the management of emergency situations and prevention of risks, including plans for joint action;
- Action Plans on risk prevention and mitigating the effects of disasters;
- Integrated common standards for risk management and urban planning;
- Equipment for monitoring environmental parameters, for emergency management and disaster resilience;
- Awareness campaigns for people in the border areas on emergencies, risks and mitigation measures, management and their reduction.
Investments projects of the beneficiaries in the fourth axis of the programme should be related to:
- Services that promote employment and lifelong learning;
- Basic infrastructure elements that promote labor mobility;
- Common strategies for better inclusion in the labor market;
- Information (databases) and consulting to enhance labor mobility;
- Campaigns to raise awareness courses for foreign languages and information sessions to promote opportunities in the labor market;
- Cross-border business incubators and virtual incubators to promote employment.
Within the actions supported by the fifth axis could be:
- Institutional cross-border networks of local or regional level;
- Cross-border models to improve services of general interest, social services and public administration;
- Training sessions to increase the capacity for the implementation of EU funded projects, legislation and management of public investment in the border area;
- Informing citizens about the possibilities of institutional cross-border cooperation [4].
Investments projects for cross border development with which can be applied for the program are in accordance with the criteria and standards for European Union. In the context of those conditions an investment project shall be defined as an operation, consisting of a series building works, activities and services designed to achieve an integral task. Evaluating focusing the attention on the entire project as a self-sufficient unit not on the fragments or part of it. For the purposes
of these guidelines the term «investment project» it is not seen as a set of technical documentation [7, p. 32].
Investment projects, receiving support through the program are chosen due to its objectives and their potential economic viability. To be eligible for the funding they must meet the three criteria: eligibility of the candidates, of the activities and the costs. In this sense are given specific requirements and conditions:
- Indicate the user of the resources / beneficiaries;
- Localization of the territory;
- Limiting the number of partners in one project;
- Giving minimum and maximum size of the eligible cost for the financing of the project;
- Giving subsidies for the eligible costs in specific rates;
- Co-financing from the partners of the project;
- Making invitations for application with certain period of receiving;
- Electronic submission of project proposals / concepts for project proposals by the system of the Program;
- Evaluation and selection of imported projects;
- Making a payment to certain conditions;
- Only certain number of project from the main beneficiary can be seen in one time.
- Finalization of the projects within a certain period of time;
- Monitoring and control of the project from the institutional structure of the Program.
On the basic of the analysis above can be made the following conclusions:
1. Investment projects by Interreg V-A Romania - Bulgaria 2014-2020 have from one side features and parameters similar to the types of projects in the whole business sector, and on the other side same specific features, depend on the strategic objective of the program for the unification of the people, communities and economies of the border area between Romania and Bulgaria, for participation in the joint development of the area for cooperation, using its human, natural and environmental recourses and benefits in a sustainable way.
2. The scope of the projects in the Program is limiting to the investment priorities giving in it.
3. The investment projects have to be in a accordance with the possibilities of the beneficiary for their performance on time, scope and budget.
4. Intererg V-A Romania - Bulgaria 2014-2020 supports the process of intelligent, sustainable and inclusive growth by directing the investments in priority directions for the neighboring border region. The effect of the Program, however, would be limited to giving the framework of joint activities, if on regional and local level has not developed real cross border cooperation which is expected.
References:
1. Updated list of selected / contracted projects 13.03.2015 [Electronic resource]. - Access regime. - URL: http://www.cbcromaniabulgaria.eu/index.php? page=proiecte-lista (Retrieved: 15.03.2015).
2. Data taken from Bar chart Funds Absorption Rate - Cohesion Policy 20072013 Based on 2007-2013 Funds Absoption Rate EU Cohesion policy: percentage of funds paid compared to available budget. Absorption rate based on interim payments and prefinancing. Source: Infoview > Financial Management > Fi-nancial_execution_by_period_fund_country [Electronic resource]. - Access regime. - URL: https://cohesiondata.ec.europa.eu/EU-Cohesion-Funding/Bar-chart-Funds-Absorption-Rate-Cohesion-Policy-20/g67v-zjyr? (Retrieved: 15.03.2015).
3. Europe 2020. Strategy for intelligent, sustainable and inclusive growth, Message from the European commission [Electronic resource]. - Access regime. -URL: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010: 2020: FIN:BG:PDF, p. 5 (Retrieved: 15.03.2015).
4. Program for cross border cooperation Interreg V-A Romania - Bulgaria [Electronic resource]. - Access regime. - URL: http://cbcromaniabulgaria.eu/user/ file/Programme 2014.pdf (Retrieved: 15.03.2015).
5. Adamov V and St. Prodanov. The investments. - Veliko Tarnovo, 2007. -Р. 11-12.
6. Tonev S. Finance. - Shumen, 2006. - Р. 190-214.
7. Guide for analysis cost-benefits of the investment projects, 2008 [Electronic resource]. - Access regim. - URL: http://ope.moew.government.bg/files/ use-ruploads/files/documentation/podgotovka_obshti/CBA_FFF.pdf (Retrieved: 15.01.2015).
8. Methodical guidelines for completing the project documentation, evaluation and management of investment project, 2005, p. 5 [Electronic resource]. -Access regime. - URL: http://www.sofia.bg/budget/investment_projects.pdf (Retrieved: 15.01.2015).
МЕЖДУНАРОДНЫЕ КРЕДИТНЫЕ ОТНОШЕНИЯ И ИХ РЕГУЛИРОВАНИЕ ГОСУДАРСТВОМ
© Федоренко А.О.*
Финансовый университет при Правительстве РФ, г. Москва
Международный кредит, являясь одной из многочисленных форм кредита, относится к числу важнейших категорий экономической науки, он активно изучается практически всеми ее разделами. Цель данной статьи - определить место и значимость международного кредита в развитии международных кредитно-финансовых отношений.
* Студент 4 курса.
