Implementation

8.8 Performance Reserve

Under Articles 7(5) and 44 of the Regulation, 4% of commitment appropriations must be retained for allocation to operational programmes and priorities which are considered successful following the Mid-term Review. The performance reserve for the BMW Region is € 55 million in current prices. The indicative financial plan in the Community Support Framework for Ireland does not include a provisional allocation of the performance reserve appropriations. These commitment appropriations will be allocated by the Commission not later than 31 March, 2004 on the basis of agreed criteria, and in close consultation with the Irish authorities. In this regard, the Irish authorities will establish a set of performance indicators to provide the basis for the allocation of the performance reserve. These will be drawn up at Operational Programme and Programme Complement level, as appropriate, and will reflect the Commission’s indicative list of performance indicators (see Table in Annex B). The Irish authorities will provide the Commission with its proposals for the allocation of the reserve by the end of 2000 at the latest. In considering the question of the allocation of the performance reserve the BMW Regional Operational Programmes will be assessed for (i) its effectiveness, (ii) operational efficiency and (iii) its rate of absorption of Structural Funds. The annual monitoring process leading into the Mid-term Review at the end of 2003 will also monitor progress in this regard. The assessment of Operational Programme for effectiveness will address value for money and Programme achievements having regard to inputs, objectives and targets. Operational efficiency will address whether the implementation system is operating well against predetermined benchmarks, while the third criterion will address drawdown of Funds against programme commitments.

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