8. Administration and conditions of implementation

8.1. Implementing Authorities

8.1.1. MINISTRY OF AGRICULTURE

The ultimate responsible authority for implementation of this Plan will be the Lithuanian Ministry of Agriculture, however, implementation of certain measures (projects or actions) might be delegated to other responsible bodies designated by the Ministry of Agriculture. 

8.1.2. MANAGING AUTHORITY

Managing Authority shall be responsible for the efficiency and correctness of management of the Programme.

The Managing Authority shall:

·        control setting up a system to gather reliable financial and statistical information on implementation of the program its compliance with the monitoring and financial indicators as well as the mid-term and ex-post evaluation of the results from the aid;

·        follow-up submission of information under the previous paragraph to the European Commission;

·        at the request of the Monitoring committee or on its own initiative, propose adjustments  of the programme to the Monitoring committee, without changing the total amount of the contribution from the funds granted to the priority concerned nor its specific targets;

·        after approval by the Monitoring Committee shall inform the Commission of the adjustments under the previous paragraph within one month;

·        amend the programme, except for the cases described under point 3, upon receiving a Decision of the European Commission and after the approval of the Monitoring Committee;

·        prepares the annual and final implementation reports of the programme;

·        organises the mid-term and final evaluation of the programme;

·        ensures compliance with the obligations concerning information and publicity;

8.1.3. NATIONAL PAYING AGENCY

National Paying Agency under the Ministry of Agriculture is acting as SAPARD Agency and in accordance to the Commission Regulation laying down the financial rules for the application of Council Regulation No 1268/99 on Community support for pre-accession measures for agriculture and rural development in the applicant countries of central and eastern Europe in the pre-accession period. National Paying Agency is responsible for:

·        call for applications;

·        project selection;

·        checking of applications for approval of projects against terms and eligibility conditions, eligibility against the content of the Programme, including, where appropriate, public procurement provisions;

·        laying down contractual obligations between the National Paying Agency and potential beneficiaries and the issue of approval to commence work;

·        execution of on-the-spot checks both prior to and following project approval;

·        follow-up action to ensure progress of projects being implemented;

·        reporting of progress of measures being implemented against indicators;

·        checking of payment claims;

·        execution of on-the-spot checks to establish eligibility for payment;

·        authorisation of payment;

·        execution of payment;

·        accounting of commitment and payment;

·        executing control on beneficiaries after payment of aid to establish whether the terms and eligibility conditions of the grants continue to be respected.

Part of the authorisation and control function will be delegated to specially arranged so-called Rural Development Programmes Departments, which are in all 10 counties of Lithuania.  These bodies will be responsible for collection of Applications for support and Payment claims. Also they will perform check–on-spot function before submitting all collected information to the National Paying Agency.

While Rural Development Programmes Departments, are directly subordinated to County’s Governors administration, a written agreement is concluded between National Paying Agency and County’s Governors administration. 2.3.8.           Written agreements must be concluded between the SAPARD Agency and bodies to which functions of the SAPARD Agency have been delegated. This agreement clearly identifies the functions to be performed by the Rural Development Programmes Department and the type of supporting documents and reports to be sent to the National Paying Agency within specified time limits.

National Paying Agency will ensure decent allocation of funds and sound financial control in accordance with strategic priorities and measures as well as in accordance with selection criteria and procedures set out in this Plan. (Please, find the structure of the National Paying Agency attached to this document in Annex VI).

National Paying Agency will be responsible for administration of public expenditure from both sources: Rural Support Fund, which will be used for national co-financing purposes and funds under EU assistance.

Transfer of money from the national budget to the Rural Support Fund (and, eventually, to the account of the National Paying Agency is regulated by the Law on Budget and Decree of the Government of the Republic of Lithuania on the establishment of the Rural Support Fund No 213 (March 12, 1997), Amended by Decree No 320 (March 20, 1998). This decree announces establishment of the Rural Support Fund (RSF), sources of its formation, institution responsible for its formation, targeted financing from the fund. Also it is pointed that this fund won’t be distributed as a source for crediting.

8.2. Financial implementation provisions for assistance

8.2.1. Description of the selection procedure for eligible projects

The Project selection procedure is an important element of the management of the Programme that may influence considerably the quality and impact of the projects selected as well as the image of the Program itself. For this reason the selection procedure is arranged in such manner as to meet basic requirements for publicity, transparency, equity and proportionality.

Projects will be selected in the following way:

·        by checking for compliance with the eligibility criteria indicated in all technical sheets per measure and definition of eligible expenditures;

·        selection of eligible projects by using priority criteria indicated in all technical sheets per measure

A single eligible project will be selected on the basis of all (within established period of time) according one measure or sub-measure received and evaluated projects.   Overall score per project per measure shall be used to rank projects.

In cases of more than one project gaining equal rank to priority criteria for project selection, preference shall be given to those projects carried out by the applicants, for which higher degree of economic viability at the application can be demonstrated.

Ranking procedure will be executed within the National Paying Agency and all final decisions will be taken by the Executive Director of the National Paying Agency.

8.2.2. The concept of ‘legal and financial commitment at national level’

‘Legally binding arrangements’ and ‘requisite financial commitments’ comprise the decisions taken by the final beneficiaries to implement eligible operations and the allocation of the corresponding public funds. These definitions have to take account of the particular features of institutional organisations, of the administrative procedures of Lithuania and of the nature of the operations.

8.2.3.The concept of ‘expenditure actually incurred’

‘Expenditure actually incurred’ must relate to payments effected by the final beneficiaries, supported by receipted invoices or accounting documents of equivalent probative value. For this monthly expenditure, the applicant country can claim the refunding share in the following month.

8.2.4.The definition of ‘final beneficiary’

Generally, ‘final beneficiaries’ are:

·        public or private bodies or firms responsible for commissioning works;

·        in the case of aid schemes and aid granted by bodies designated by Lithuania, bodies which grant such aid;

The bodies concerned shall institute the collection of financial information (survey of receipted invoices, reports and confirmations on physical progress of the actions, or accounting documents of equivalent probative value).

The detailed description of ‘final beneficiaries’ that are eligible for the measures under the present Plan are set out in the Technical Sheets in Annex II of the Document.

8.2.5. Mechanism for EU payments and declaration of expenditure

The Community financial contribution to the carrying-out of the present Programme will be financed by the EU in the form of advances (10 % of the first year’s allocation available till the end of the programming period), part-financing and financing in accordance with the principles laid down in Articles 28 and 29 of (General Structural Funds Regulation).

Payments of financial assistance may take the form of advances for programme implementation and of payments against expenditure incurred.

8.3. Compliance with Community policies

8.3.1. The competition rules

LAW ON COMPETITION, 23 March 1999 No.VIII-1099

This law contains VI Chapters:

I Chapter-GENERAL PROVISIONS. It indicates purpose of Law on Competition,

what field this law regulates, when it can be applied and general notions, which helps to understand better this act. It says what kinds of unfair competition agreements are

restricted.

II Chapter-RESTRICTIVE PRACTISES. Prohibits to abuse a dominant position within the relevant market by carrying out actions which restrict  or may restrict competition, limit without cause the possibilities of other undertakings to act in the market or violate the interests of consumers by imposing of unfair prices or other purchase or selling conditions and also this chapter supervises concentration.

III Chapter-UNFAIR COMPETITION. Notions of this chapter covers prohibition for

for undertakings unauthorized use of a mark of another undertaking, misleading of undertakings by providing them with  incorrect of unjustified information about quantity, quality of its goods or goods another undertaking, disclosing information representing  a commercial secret of another undertaking without its consent, simulating ther product or product packaging of another undertaking and using of misleading advertisement( it is described by still valid article 7 of old law on Competition, until new law on Advertisement will be passed).

IV Chapter - INSTITUTION CONTROLLING ACTIONS RESTRICTING COMPETITION

This chapter establishes authorization of Competition Council, its structure, procedure, also powers of chairman of Competition Council and borders for protection of commercial secret.

V Chapter-HEARING OF RESTRICTIVE PRACTICES CASES

The provisions of this chapter establish the procedure for Hearing of restrictive practice cases and how should be investigated complaints in court for decisions of Competition Council.

VI Chapter - LIABILITY FOR INFRINGEMENT OF THE LAW ON COMPETITION

Establishes sanctions by infringement of Competition law. Also procedure for imposing penalties, exemption from fines and recovery. Infringement of this law shall incur administrative liability established by the laws of the Republic of Lithuania.

The harmonization diagram, as drafted by TAIEX Bureau, on correlation of the EU and Lithuanian legislation in the sphere of competition law is twice subjected to supplements and revisions. In 1999 under PHARE technical assistance project had been made the distinction of four major development trends that are in need of technical assistance for 1999, namely: competition, state aid, consumer protection and antidumping. In order to ensure the effective enforcement of the new Law on Competition in 1999 there are prepared secondary legal acts that are deemed to be compatible with relevant EU competition law practice. The full harmonisation of the competitions law is expected to be reached next year.

8.3.2. Award of contracts

Public procurement rules should be applied for implementation of the rural infrastructure related projects of this Plan (Measure 4). Public procurement rules are enacted in the following national legal act:

-         Law No.VIII-1210 On Public Procurement, adopted on 03 June 1999;

Amended by Law No.VIII-1349 On the Amendment of Articles 14, 32 of the Law On Public Procurement, adopted on 5 October 1999;

The legal basis on the public procurement defines:

-         the procuring entity (it is the public authority, an enterprise, institution or organisation at the national as well as the regional level, if goods, services and works procured are fully or partially reimbursed from the national budget);

-         the public procurement procedures (open tendering, closed tendering (two-stage), single-source procurement, request for quotations);

-         formation of the public procurement agreement;

-         order to appeal.

8.3.3.Protection of the environment

According to the Council Directive 91/676/EEC concerning the protection of waters against pollution caused by nitrates from agricultural sources Lithuanian Code of Good Agricultural Practice (GAP) is prepared and will be confirmed by the Minister’s order on the 1th half of 2000. The GAP defines the minimum environmental requirements which farmer must comply.

According to the Council Directive 85/337/EEC (amended by the Directive 97/11/EC) on the assessment of the effects of certain public and private projects on the environment the Law No I-1495 on environmental impact assessment (EIA), was adopted on 15 August 1996 (amended by the Law No VIII-436 on 7 October 1997 and the Law No VIII-329 on 26 June 1997). Draft law amending the Law on EIA is submitted to the Parliament for the approval.

Organic agriculture is legitimated by the Law No I-734 on the State Regulations of Economic Relations in Agriculture, adopted on 22 December 1994. According to the Council Regulation (EEC) No 2092/91/EEC on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs Lithuanian Organic Agriculture Regulations were adopted in 1997 by the Board of the public organic farming certification organisation “Ekoagros”. In 1999 the Board of “Ekoagros” has approved Organic Agriculture regulations, in which organic livestock farming and the other amendments related with changes in the EU Regulation 2092/91 are included. These new regulations will come into force as from the 1 March 2000. In 2000 “Ekoagros” will provide the necessary documentation to the EU Commission and apply for insertion into the EU third country register.

8.3.4.Equal opportunities for men and women

The Law on Equal Opportunities was adopted by Seimas in December 1998, the Law number VIII - 947. Amendments to other laws and regulations pertaining to it were also adopted. The Law defines sexual discrimination, and prohibits it. It mainly regulates relationships in labour market and education. The law also defines duties of State Government and Administration Institutions to implement equal rights for men and women. Within the limits of their competence state government and administrative institutions must: (a) ensure that equal rights for men and women be guaranteed in all legal acts; (b) draw up and implement programs aimed at changing public attitudes about the superiority of one gender over the other; and (c) in the manner prescribed in the law, provide assistance to the programs of public institutions, societies and charitable foundations which assist in the implementation of equal opportunities of men and women. In line with this law, the office of an Equal Opportunities Ombudsman has been set up.

8.3.5.Hygienic and sanitary rules

Directive 91/4493/EEC Fishery products

Order No. 4-34 On Approval of Veterinary Requirements for the Production of Fish and

Fishery Products adopted on 12 February 1998 by the State Veterinary Service.

Directive 92/45/EEC Game meat

Veterinary Requirements for Preparing and Trade in Fresh Game Meat Approved by the November 9, 1998 SVS Order No 4-269.

Directive 92/48/EEC Fishing vessels

Order No. 4-227 On Approval of the Requirements for Fishing Vessels adopted on 3 September 1999 by the State Veterinary Service.

            Directive 89/437/EEC Eggs products

Order No. 4-80 On Approval of the Veterinary Requirements for the Production and Placing on the Market of Eggs and Egg Products adopted on 7 April 1998 by the State Veterinary Service.

Directive 92/46/EEC Milk and milk products

1.      Veterinary Requirements for Milk Farm and Milk Transportation approved by the May 5, 1998 SVS Order No 4-100;

2.      Requirements for Milk and Milk-based Products Manufactured in Milk Processing Establishments approved by the May 5, 1998 SVS Order No 4-100;

3.      Veterinary Requirements for Milk Treatment and Processing Establishments approved by the May 5, 1998 SVS Order No 4-100.

Directive 71/118/EEC Poultry

Requirements for Production and Placing on the Market of Poultry Meat approved by the May 28, 1998 SVS Order No 4-128.

Directive 64/433/EEC Fresh meat

Rules on Preparing and Placing on the Market of Fresh Meat approved by the January 29, 1999 SVS Order No 4-30.

Directive 77/99/EEC Meat products

Order No. 4-128 On Approval of Regulation for the Production and Marketing of Meat Products and Other Products of Animal Origin adopted on 28 May 1998 by the State Veterinary Service.

8.3.6.Phytosanitary rules

The main phytosanitary Council directive 77/93/EEC on Protective Measures Against the Introduction into the Community of Organisms Harmful to Plants and Plant Products and against their Spread within the Community, determines the plant health regime for the EC single market. It harmonises phytosanitary regulations related to trade between member states.

The Law on Phytosanitary, prepared according to the Council Directive 77/93/EEC (General phytosanitary measures, phytosanitary control at the place of production, phytosanitary control of imported and exported consignments, international co-operation, legal responsibility), was approved in Seimas (the Parlament of the Republic of Lithuania) at the end of December, 1999. Harmonisation and implementation of the phytosanitary legislation will ensure the protection of Lithuanian territory against the introduction and spread of harmful organisms, will permit to apply phytosanitary control measures and will determine mandatory phytosanitary requirements.

Recently adopted Lists I and II of quarantine organisms fully comply to the Annexes I and II of Directive 77/93/EEC. Harmonisation of other Annexes as well as implementation of the measures indicated in the World Trade Organisation Agreement On the Application of Sanitary and Phytosanitary Measures will ensure the uniform application of phytosanitary requirements for the imported production as well as for the domestic production of plant origin and do not restrict to perform the international trade.

Parlament of Lithuania has ratified IPPC (International Plant Protection Convention). Ratification of IPPC and fulfillment of obligations foreseen in the Convention it is obligatory condition for the membership in the EU and WTO.