Microsoft word - cipro - rdp modification wd 37-347-09.doc

WORKING DOCUMENT
RURAL DEVELOPMENT COMMITTEE
Member State / Region:
Republic of Cyprus
APPROVED PROGRAMME:
The Rural Development Programme (2007-13) for Cyprus C(2007) 5837 of 23-11-2007 LEGAL BASIS FOR THE MODIFICATION
Modification related to the first implementation of Article 16a of Regulation (EC) No 1698/2005. REASONS JUSTIFYING THE AMENDMENT / STRATEGY CHOSEN
The amendment is proposed in the context of the Health Check of the CAP and the European Economic Recovery Plan as described in Regulations (EC) 473/2009 and 482/2009. 4 DESCRIPTION OF THE AMENDMENTS PROPOSED:
4.1 New priorities / types of operations
The proposed modification includes the additional financial allocation of 2,04 M€ foreseen for Cyprus from the European Economic Recovery Plan. This sum is proposed to be distributed to an already existing Agrienvironmental measure and more precisely to Action 2.3.3 "Agrienvironmental Obligations for Citrus Fruits" (1.130.000€) and to a new measure, Measure 3.4 "Broadband infrastructure in "white spot" regions” (910.000€). Cyprus did not receive any additional financial allocation following the Health check of the CAP as it will not receive any modulation amounts before 2013 (Regulation (EC) 74/2009). Table 6.3 (inserted in Chapter 6, p 34): Indicative allocation per Measure related to new challenges of Art. 16a (1) a) to g) of Reg. (EC) 1698/2005 Measure/ Axis
Total Cost
contribution
Expenditure
contribution
Amount related to new priorities described in Art. 16a (1), d) of Reg. Measure 321 Basic Services to the rural population and economy described in Art. 16a (1), g) of Reg. (EC) 1698/2005 Total for the RDP (2007-13)
2,040,000
4,080,000
4,860000
4.2 Description of the amendments proposed to axes and measures
Health check-Recovery Package related amendments:
Chapter 3 Analysis of the situation and Chapter 4 Selected Priorities: The following text is added in the sub chapters relating to water, biodiversity, climate change and broadband (pages 7, 13, 14, 16, 17, 18, 19, 22, 24, 27, 28): UPDATE: «NATURA 2000» 38 areas have been submitted to the EU for inclusion in the Natura 2000
network in the context of the LIFE third Countries 1999 Programme.
These regions cover 14% (82.583 hectares) of the total territory under effective control of the Republic of Cyprus and have been approved by the EU in March 2008. Agricultural land covers 13000 hectares of the Natura 2000 Network of which 2015 hectares are private agricultural land and 10.419 hectares are private owned areas of natural vegetation (trees, bushes, forests) (Table 10, Annex II). The private agricultural land is negligible and its management does not create problems for the achievement of the objectives of the NATURA 2000 Network. For the protection of nature and wild species the Service of Environment and the Department of Forests have created Management plans for the NATURA 2000 areas. Within the context of the program LIFE/Natura, co-financed by the EU and the Republic of Cyprus, the Management plans have been created for the National Forest Park of Troodos, National Forest Park Cavo Greco, Vouni Panagia,, Diarizos Valley. For the area Saline Lakes of Larnaca a Management plan existed since 1997. The Management plan of Althkon is in the process of being revised. The Program "Transition Facility 2004" allowed the creation of Management plans for 8 regions of the Network. This are regions are Madari, Papoutsa, Skoulli, Lympia St. Anna, Region Limnati, Mammari, Deneia, Alyko River – St. Sozomenos, Mjtsero and Polis Gialia. 13 Management plans are under preparation within the "Transition Facility 2006" for regions: Ha - Potami, Episcopi Moro Nero, Mavrokollympos, Cape Aspro and Petra tou Romiou, Asgata, Lef'kara, Drimi, Kritou Marottou, Fountoukodasi Pitsilias, Karkoti Valley, Maroulenas River Valley, Pristerona River Valley, Xeropotamos. The Forest Department is preparing Management Plans for the forests of Pafos and Mchairas. At the present phase, efforts are focused on consultations with local bodies in order to inform them on the measures and provisions of the Management Plans. The Service of Environment is at the final stage of preparation of the legal basis for implementation of the Management Plans. There is also a Network of 7 forest protected areas (Nature Reserves and National Forest Parks) which cover an area of 23079 ha or percentage wise 6% of the forest and other wooded areas of the whole of Cyprus. These areas are protected on the basis of the national legislation on forests. NEW – Water Management information: Particular importance is paid to the protection of water
resources and aquatic ecosystems with the promotion of application of European Directives, such as the
Water Framework Directive, the Directive on Protection of Underground Waters from Pollution and
Deterioration, as well as the Directive on Protection of Waters from the Nitrate pollution.
In the context of the application of the Water Framework Directive, the Department of Water Improvement is preparing a study for an Integrated Water Management Plan for Cyprus and of a related Measure Plan. The study will be completed by the end of 2010. Besides a Drought Management Plan is prepared in order to help managing rationally and sustainably the water resources of the island. At the same time, sewage works are being carried out in all Communes and Municipalities of more than 2.000 equivalent population for the implementation of Directive 91/271on urban waste, aiming at the resolution of environmental problems and at the integration of recycled water in the water balance. More specifically, I order to cover the needs of agriculture, the objective is to increase the quantity of recycled water for enrichment of underground water as well as for the irrigation of existing agricultural cultures. Today, 14,5 mill. of cubic meters of recycled water are produced and more than 50% are used for irrigation. The main objective of Cyprus is to completely eliminate the dependency of water supply from rainfall and to use as much as possible desalination units. Until 2012 5 permanent Desalinisation Units will be created that will provide 250.000 cubic meters of water per day. Two units exist today that provide 120.000 cubic meters of water per day. Until 2012 and in order to avoid water shortage problems as the ones faced in 2008 due to an extended drought, a movable desalinisation unit was created in Moni (producing 20.000 cubic meters per day) and a water purification unit for underground water in Garili (10.000 cubic meters per day). An additional unit producing 20.000 cubic meters of water per day is owned by the Electricity Company of Cyprus. An important number of other actions is being cofinanced by the Cohesion fund for the period 2007-13. NEW – Climate Change information: The turning-point for fighting climate change was the United
Nations Convention on Climate Change and the Protocol of Kyoto. Even if Cyprus ratified the
Convention and the Protocol of Kyoto in 1997 (Cyp. Law 19 (jjj)/1997) and in 2003 (Cyp. Law 29
(jjj)/03) respectively, no quantified targets where undertaken. Cyprus was not an EU member when the
individual targets were established for its Member States for the first period of engagements (2008-
2012). Thus, in order to jointly reach the 8% objective with regard to the reduction of emissions of
greenhouse gases, Cyprus does not have any quantified targets. The Table 12 of Annex II shows the
greenhouse gases emissions for Cyprus for 1990-2007 where an increase of 83% is observed. The
European Council of December 2008 showed that the European Union is ready to undertake a leading
role worldwide for fighting climate change and for promoting safe, viable and competitive renewable
energy provision. The European Union has committed itself to reduce the emissions of greenhouse gases
by 20% through the legislative package on climate and energy, which was voted by the European
Council and the European Parliament in December 2008. The political will exists to set the objective to
30% reduction in case other big countries show an equivalent will.
The package on climate and energy, is constituted of four legislative texts: (a) modification of the marketing system for emission rights, (b) national targets for reduction of greenhouse gases emissions from sectors that are not included in the marketing system for emission rights, (c) directives on support of technology for collection and geological storage of carbon dioxide, and finally (d) the increase of the target for renewable energy production. The marketing system for emission rights, - and it will remain -, the basic pillar of the European policy for climate change. It constitutes the main tool in the hands of the EU to promote clean energy investments. On the basis of the experience was acquired from 2005 until today, the proposed revision of this system aims at its improvement and at its efficiency. An aggregated and digressive EU ceiling (until 2020) replaced the National Distribution Plans. For the sectors that aren't covered by the above, like transports, buildings or agriculture, the national targets are based on the per capita GNP and they vary between minus 20% and plus 20% from the 2005 levels. The objective set for Cyprus, is to reduce its 2005 emission levels by 5%. In 2008 a series of other legal texts were voted which aim at the reduction of emissions: the inclusion of air transportations in the marketing system for emission rights, fuel quality with regard to their emissions and the reduction of emissions of carbon dioxide from cars. NEW – Broadband information: Another important problem appearing in Cyprus is the low access to
ICT from rural area population. According to the Broadband Performance Index – BPI of the UE,
Cyprus is the second worst performer after Bulgaria in the EU-27 (and Norway). This index takes into
account offer and demand factors that can incite or discourage broadband network expansion. Cyprus has
a good penetration percentage in urban areas but it is in this low position due to the cost of services,
coverage, speed and competition in rural areas. Cyprus has set as an objective to cover 100% of its
territory with broadband access by 2010. According to the 14th implementation report Cyprus has a
76.9% coverage and is ranked 23rd and has 18,2% broadband penetration and is ranked 17th.
NEW – New Challenges: Regarding the amount of 2.260.000 € that have been allocated to new
challenges, it is decided to allocate it to an already existing agrienvironmental measure and more
precisely to Action 2.3.3 "Agrienvironmental Obligations for Citrus Fruits'" as this action contributes
simultaneously to more than one new challenges.
The climatic changes that are observed the last years all over the world and more specifically in hot and dry regions require measures and a strategy that will encourage the adaptation of cultures to increased temperature, lack of water and other biotic and abiotic factors that put pressure on cultures and that are observed when extreme meteorological phenomena occur. At the same time the reduction of greenhouse gas emissions by plant production can also contribute to the minimisation of this phenomenon if other drastic measures are taken especially in other sectors of the economy such as industry, tourism and transports. Measure 2.3.3. "Agrienvironmental Obligations for Citrus Fruits” is a complete set of actions that contribute to the adaptation of agriculture to the new challenges as defined during the Health check of the CAP. Mechanical means of pests control instead of using pesticides in a considerable manner to the minimisation of underground water pollution helping substantially the sustainable use of water. At the same time, the incorporation or the maintenance of plant biomass in the soil decreases evaporation and thus the water needs of cultures. Also by doing so, the organic carbon in soils is increased while the microbial activity is encouraged in the soil (production of microbial biomass) resulting in increased carbon retention in soils and reducing at the same time carbon dioxide emissions. Finally the increased biodiversity of micro-organisms in soils considerably improves soil fertility which is an important indicator of sustainable agricultural ecosystems which considerably downgraded by climate change. Integrated Management Systems include various farming practices which are combined in such a way as to ensure environmental protection and food safety. Implementing such integrated management systems contribute to most of the new challenges since they include schemes and actions going beyond good farming practices. Each agricultural activity is always implemented by taking into consideration the particularities of the region where they are applied while they are recorded allowing for a better monitoring of the situation. The practices of irrigation, fertilization, plant protection, and other practices as harvesting are implemented under the direction and advices of specially trained agronomists. For example the application of chemical fertilizers is considerably reduced and products which provide the necessary nutritious elements to plants are applied allowing controlled disengagement (technologies of covering and slow disengagement). This practice has important indirect benefits regarding the emissions of carbon dioxide because of the decreased production of fertilizers by the chemical industry. Besides, fertilization only occurs after a chemical analysis of soil and leaves in order to avoid unnecessary fertilizers’ application. The irrigation of trees follows a specific program and a concrete irrigation schedule which improves sustainability and provides an integrated water management means, reducing unnecessary water use. The decreased use of plant-protection products improves considerably the biodiversity of various agricultural ecosystems decreasing this way the total imprint of agricultural activities on their natural dwellings and reducing the impact from other abiotic factors such as temperature increase and water shortage as a result of climatic changes. Measure 214, Action 2.3.3 "Agrienvironmental Obligations for Citrus Fruits"
The financial table of this action is amended as a result of the additional financial allocation (numbers in brackets indicate the previous financial allocation of the measure): The Indicators table of this measure is amended as follows: Total area under agrienvironmental support Natural areas under agrienvironmental support (a) biodiversity and high nature value areas Measure 3.4 "Broadband infrastructure in "white spot" regions” (new measure)
Legal basis: Article 52 (b) (i) and 56 of Regulation (EC) 1698/2005, Point 5.3.3.2.1 of Annex II of Regulation (EC) 1974/2006, Annex III of Regulation (EC) 1698/2005 Implementing Body: Department of Electronic Communications - Ministry of Transports and Works The Council of Ministers decided, on 18/2/2009, to make the Ministry of transports and works politically responsible for the ICT field in Cyprus. More specifically its Department of Electronic Communications (DEC) was made responsible both for the elaboration and implementation of a national ICT Strategy. An advisory body was created at the same time involving related Ministries, private bodies and university and presided by the General Director of the Ministry. The first objective of the elaborated strategy is to alleviate the important differences in broadband access between rural and urban regions of the island (some rural areas are penalized and some areas do not have access to broadband at all). The target is to provide 100% broadband infrastructure coverage for the island by 2010 in order to allow 100% of the population to access ICT services. Today 151 communes do not have access to broadband in Cyprus and are characterized as “white spots”. These communes are remote and scarcely populated and represent 3,3% of the population (25.000 inhabitants or 13.000 households) out of 760.000 inhabitants in Cyprus following the latest census. Furthermore in these communes 50% of the population is older than 55 years. Installing infrastructure and services provisions is only economically viable in areas of dense population and due to high uncompressible cost, the connection cost per unit is significantly increased in scarcely populated areas. For this reason the providers in Cyprus have only covered part of the population of Cyprus (where population density is very high). The aforementioned 151 communes are scarcely populated and have more than 50% of elderly population and have been deemed non profitable by the market since these areas have not been covered until now and no intention exists by the market actors to do so. In addition following a study made to estimate the total cost for the coverage of these areas the cost has been calculated to 11 million € (Annex XI, attachments 12, 13, 14 in SFC2007) while the income from its commercial use for 6 years is estimated at 3,5 million €. It is thus concluded that a market failure does not allow providing broadband services to these communities. A public intervention is deemed necessary in order to support broadband infrastructure provision in “white spot” areas in order to achieve 100% coverage of the islands for public interest. 1. To cover "white spot" regions with broadband networks in order to achieve 100% 2. To provide all broadband services already existing urban areas to "white spot" regions, in order to allow all citizens and enterprises of these regions to access all available broadband services. 3. Creation of high-speed broadband networks in these regions that can evolve in the 4. To achieve economic and social growth of "white spot" regions and to improve the standard of living of their residents. More specifically rural areas can benefit from broadband via the creation of new businesses, new agricultural holdings, new employment positions, the amelioration of health services, increased educational possibilities, tourism development and fast and accurate information of the rural population. 6. To allow these areas to have an equal access to broadband services to the ones 7. Acceleration of ICT contribution to growth and innovation in all the sectors of economy and to social and regional cohesion. The aim of the measure is to provide broadband access to 30 out of the 151 communities (“white spot areas”). More specifically a backbone passive infrastructure of fiber optics is going to be created within the communes and ending to a single spot, providing access to all interested providers. Public support will be provided for the creation of this infrastructure to the necessary degree, in order to allow actors of the sector to demonstrate an entrepreneurial interest and extend their networks and to cover these "white spot" regions. The 151 communities have been separated in 5 equal subgroups (clusters) based on geographic criteria (Annex XI, attachments 12, 13, 14 in SFC2007). For each community subgroups the cost of broadband coverage has been calculated, as well as the income from commercial exploitation for 6 years. The maximum support for each cluster has been fixed to the difference between the coverage cost and the income from commercial exploitation for 6 years (Annex XI, attachment 13 in SFC2007). The beneficiary will have to invest at least 30% of the total coverage cost. An open public tender will be made to select the beneficiary/contractor for each cluster of communities. The applicants will be asked to declare the public contribution they will need to cover each cluster of communities as well as the total coverage cost. The applicant requesting the lower public contribution will be selected (this amount cannot exceed 70% of the total coverage cost). The selected applicant will have to install all necessary equipment and to provide broadband services to the residents of these communities with speeds up to 15 Mbps per user. The applicant can use any technology, wired and/or wireless, in order to ensure technological neutrality. Furthermore, the passive network that will be created will have to be open, non-discriminating to third party providers which will be able to provide services using any technology they wish. Consequently, this measure falls under the application of Article 87, paragraph 1, of the Treaty concerning State Aid since public support will be provided. According to Article 87, paragraph 3, of the Treaty the followings information is provided: 1. Mapping details and Coverage Analysis The 151 communities (rural regions) of the Republic of Cyprus which are not covered by any broadband network are listed in Annex XI, attachments 12 in SFC2007. The determination of "white spot" regions was made with the help of all existing providers of electronic communications that have broadband networks on the basis of the coverage of their existing network. A public consultation was organised by the Department of Electronic Communications (TIE) on 27/4/09, with an open invitation to all interested providers of electronic communication in order to discuss the subject of offering a broadband network to "white spot" areas via public private partnerships and individual meetings with all the existing providers were organised. It appeared that all providers agreed that public support should be provided for the coverage of these regions since on the basis of their business the coverage of these areas is very difficult (even in the future). Furthermore the process described below is the result of the consultations with the providers. For the each cluster of communities the cost of broadband coverage was calculated, as well as the income from commercial exploitation for 6 years. The difference between the coverage cost and the income from commercial exploitation for 6 years is big and was fixed as the maximal public support subsidy to cover each cluster (Annex XI, Attachment 12 in SFC2007). Consequently, it is deemed that a market failure exists for the coverage of these regions with broadband network. 2. Process of Open Tender and Most Advantageous Offer In order to achieve the aim of this measure the following should be made: Separation of the 151 communities in five equivalent subgroups (clusters), based on geographic criteria. Each subgroup (cluster) is shown in Annex XI, attachments 12, 13, 14 in SFC2007. Furthermore in Annex XI the five clusters of communities are depicted on a map of Cyprus. The separation of communities in subgroups was deemed necessary in order to provide the possibility to more than one providers to offer broadband coverage in these rural areas. An open tender will be launched for each subgroup (cluster) of communities. Documents for the tender will be prepared with the technical specifications, guarantees, criteria, timetables etc. The tender/competition will be simple. The applicants will be asked to submit a table of conformity with the specifications and to submit their requested amount for public aid as well as the total coverage cost for each subgroup of communities. The applicants will have to submit an offer for all the subgroups of communities in order to ensure the coverage of all subgroups of communities. The selected applicant for each subgroup will be the one requesting the lowest sum of public aid, which will not exceed 70% of total coverage cost. The requested amount should not be higher than the maximum public support amount fixed for each subgroup of communities. The selected applicant of each subgroup of communities will implement a network of optical fibres in this subgroup of communities and will provide all broadband services in these communities with speeds up to 15 Mbps per user. The selected applicant will have to install fiber optic cables and infrastructure leading to a terminal point in each community (fiber to the cabinet – FFTC). The selection of fiber optics is considered the most reliable solution in a depth of time and can evolve to a new generation network. The selected applicant and any other interested third party provider will be able to connect users with this terminal point by any technology of their choice either wired (ADSL, Cable, etc.) either wireless (Wi-Fi, Wimax, satellite etc.) for the provision of all available broadband services with speeds up to 15 Mbps. According to the national legislation in force any established provider is obliged to provide to third parties access to his network (copper network). According to existing national legislation in force (For the provision and use of common facilities by the EPIET) provider is obliged to provide to third parties access to his network for service provision. The tender documents will include the obligation for the selected provider to install an equal number of optical cable space than the one he installed himself for at least two other providers (open access, no discrimination) for at least 10 years. Third party providers will be able to install these fiber optic cables by themselves under the supervision of the selected applicant. The selected applicant will have to provide bitstream services to third party providers and any other obligation imposed by EPIET (by law) in the future. The contractor of each subgroup will not be allowed to impede third party providers to install their own networks. 6. Establishment of Evaluation Criteria when setting Prices The annual rental cost for wholesale access will be established on the basis of the electronic communications legislation in force. Any provider of significant importance has to have a unique broadband services tarification for the whole country. The investment cost made by private capital (excluding public support) will be taken into account for services tarification. This will contribute to lowering the prices of broadband services provision. 7. Recuperation mechanism in order to avoid overpricing The contract with the selected applicant will include a clause for retroactive reduction of the received public support in case broadband services demand exceeds the foreseen levels. This mechanism will function as follows: if the rate of penetration exceeds 18% after 6 years following initial service provision, then the Contractor will have to reimburse, in 6 annual equal instalments, the difference between the public support received and the public support that would result if this percentage was used in the study of Annex II (instead of the 18% penetration rate used in the study). In this study it was estimated that the contractor will provide services to 18% of the total potential customers after 6 years of operation and 18% is the current rate of penetration. Each 12 months the selected applicant will have to provide the number of subscribers for each community group. This mechanism will start being implemented once the subscriber base of the provider is stabilised in order to take educated conclusions. This Measure falls under actions I and III of the new Annex III of Regulation (EC) 1698/2005. The selected applicant/contractor for each subgroup of communities will implement the following actions in relation with actions I and III, as these are determined in Regulation (EC) 1698/2005. Creation and improvement of access to a permanent broadband infrastructure including backhaul facilities and land equipment: this action concerns economic support for the creation of broadband infrastructure of an open access network in “white spot” areas. The creation of a backhaul network which will ensure the unhindered connection with the backbone network. The backhaul network will be materialised with passive infrastructure according to Action III of the Regulation as well as the terminal station in each community (small cabinet) with all necessary machinery for the provision of broadband services with speeds up to 15 Mbps as well as connection with equipment of third party providers. The place selected for the installation of terminal station (cabinets) will have to allow thei installation of equipment of at least two other providers and for their connection with the passive infrastructure of the selected provider. Installation of passive broadband infrastructure (installation of optical fibres): mentioned previously the backhaul network will consist of the installation of passive infrastructure with optical fibres. This action includes excavation works, conducts/shafts, installation of network and fiber optics which constitutes the bigger part of the cost (70-80%) for a broadband network. Any provider, before the realisation of excavations for the installation of his infrastructure, will have to obtain necessary permits from each Competent Public Authority, as determined by national legislation in force. Creation of permanent passive infrastructure (excavation works, conducts/shafts, installation of network and fiber optics) as well as the terminal station in each community (small cabinet) with the required machinery allowing the provision of any technology (wired or wireless) for the provision of broadband services with speeds up to 15 Mbps. Providers that will be selected following the call for tender for this measure. The intention of this scheme is to cover all “white spot” areas of Cyprus. These 151 communes have been divided in 5 equal clusters based on geographical criteria. For each cluster an open tender will be made. The amount required to cover all 151 communes is much higher than the additional financial allocation provided by the Healthcheck of the CAP and the Recovery package. The Rural Development Plan (2007-13) for Cyprus will cover 30 of the 151 “white spot” communes of Cyprus and the selection of the cluster to be covered by the RDP was made based on the following criteria: number of agricultural holdings in the area and average elevation of the communes. The map of the selected cluster is annexed to the RDP (2007-13) for Cyprus (Annex XI, attachments 12, 13, 14 in SFC2007) and it covers the northern part of mount Troodos. The area is clearly demarcated from the other clusters both geographically and according to the two aforementioned criteria. Type of indicator
indicator
Target for 2007-2013
Will be quantified in the context of the ongoing evaluation In chapter 9 « State Aid Measures out of Article 36 of the Treaty (art. 16 (f) of Reg. (EC) 1698/2005) a second line referring to measure 3.4 "Broadband infrastructure in "white spot" regions” has been added. Title of state aid regime
Indication of the legality
Duration
of the regime
1.6 Added value to agricultural and forestry products. Creation Any state aid provided to and modernisation of transformation and promotion accordance with Reg. (EC) units of agricultural and forestry 1998/2006 for de minimis products ( Beneficiaries C) The state aid scheme has 2009-2013 been communicated to DG COMP by the National State Aid authority and its approval is awaited. The number of the scheme will be inserted in this table as soon as it is received from DG COMP.
Chapter 10: Complementarity:
The following text has been added concerning Broadband demarcation:
Concerning the National Strategy for Broadband aiming at covering 151 communes in rural areas (grouped into five sub groups) it was agreed that the RDP (2007-13) for Cyprus will cover the sub group with the higher number of agricultural holdings and with the higher elevation (sub group 2). A clear geographical demarcation exists and Annex XI of the RDP, attachments 12, 13, 14 in SFC2007, includes division of these 151 communes into five subgroups and a map is provided identifying subgroup 2 which will be financed by the RDP. Other modifications not relating to the Health check or the Recovery Package:
A clarification is added for cereals' organic production in Measure 2.3.7 "Organic Farming": “Within the context of this measure, when the produced cereals are destined for human consumption, the obligation to link organic cereals production with organic farming does not apply. In this case the applicant has to provide relevant proof (ex. Invoices) showing that whole cereals production will be used for human consumption.” Until now only cereals destined for animal feed for organic animal production was foreseen in the measure. For Measures 2.4.1. "Afforestation of Agricultural land" and 2.6.2 "Forest environmental payments" the obligation to respect cross compliance is now added as it was omitted in the previous version of the RDP (2007-13). Finally the possibility to provide advance payments to LAGs is proposed in Measure 4.3 "Running local action groups, skill acquisition" as the implementation of local strategies will occur for the first time during this programming period in Cyprus and the LAGs have a need of immediate support in order to start operating and implementing local strategies in an optimal manner (p. 261): “Concerning running costs for Local Action Groups the possibility to provide advances exists. The amount of the advance cannot exceed 20% of the public cost of the running costs and the advance is subject to the provision of a bank guarantee or an equivalent guarantee equal to 110% of the amount of the advance. The advance can only be provided after the completion of the local strategy.” 5. THE EXPECTED IMPACTS OF THE AMENDMENTS
The proposed amendments will: - increase the total financial allocation of the RDP (2007-13) for Cyprus by 4,08M€ in result of the Recovery Package; - improve the implementation of various measures and of the Leader axis. The indicators of are impacted as follows: Please note that for Measure 214 the indicators/targets included in this table are additional to the already existing indicators/targets. As Measure 321 is newly created all indicators/targets shown in the table are the indicators of the new measure. This table is inserted in Chapter 5, p 32. • Rational water use • Increasing workers ASSESSMENT
General assessment of the modification
The updated version of the 2007-2013 NSP was submitted on 31/07/2009 and the proposed amendments to the RDP are in compliance with the proposed NSP. The Monitoring Committee was informed about the proposed amendment on June 16, 2009 and provided its agreement by written procedure and authorised the managing authority to take all necessary actions for the approval of the modification before the end of 2009. FINANCING
Table 6.1 Annual contribution from EAFRD (in EURO) 26.704.860 24.772.842 22.749.762 23.071.507 22.402.714 21.783.947 21.037.942 164.563.574 26.704.860 24.772.842 23.949.762 23.911.507 22.402.714 21.783.947 21.037.942 166.603.574 Table 6.2 Financial Breakdown per Axis (in EURO for the period 2007-13) Total (without Technical € 323,300,970 Table 6.3 Indicative Measure allocation in relation to the new challenges of Art. 16a paragraph 1, (a) to (f) of Reg. (EC) 1698/2005 Measure/ Axis
Total Cost
Expenditure
contribution
Amount related to new priorities described in Art. 16a (1), a) to f) of Reg. (EC) 1698/2005 Measure 321 Basic Services to the rural population Amount related to new priorities described in Art. 16a Total for the RDP (2007-13)
4,080,000
4,860000

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