Having undertaken certain obligations as a member state of the European Union and a member of the OECDs Development Assistance Committee (DAC), Greece committed itself to annual increase of its international development assistance with a view to ultimately achieving the target of 0.33% of its Gross National Income (GNI). Within this framework, a five-year programme for Greek development assistance, the Hellenic Plan for the Economic Reconstruction of the Balkans (HiPERB), was drawn up for the period 2002-2006. Given, however, the more than two-year delay in HiPERBs practical implementation mid-2004 instead of 2002, it was considered essential to prolong the programme until 2011, so as to give recipient countries the possibility to use more HiPERB funds allocated to them.

HiPERB is an effort on the part of Greece in its capacity as a donor country to incorporate certain individual initiatives of development assistance into one single plan, and thus promote an integrated development policy. This Plan is, first of all, aimed at political, economic and social stability in Southeast Europe, whereas its ultimate goal is to modernise infrastructure, promote production investments, support democratic institutions and the rule of law, modernise public administration and local government, strengthen the welfare state, redress economic inequalities, and offer professional training to workers and scientists in the recipient countries.  Another equally important objective of HiPERB is to support the recipient countries European perspective.

The total budget for the Hellenic Plan for the Economic Reconstruction of the Balkans (HiPERB) comes to 550 million, which is earmarked for carrying out big-scale infrastructure projects and strengthening private initiatives and bolstering cooperation between the countries of our region. The Plans seven recipient countries, i.e. Albania, Bosnia-Herzegovina, Bulgaria, FYROM, Montenegro, Romania, and Serbia are not only Greeces trade partners, but frequently serve as communication channels linking our country with the rest of Europe and the broader region. The principles that govern HiPERBs implementation are efficiency and transparency. The Plans management bodies are the HiPERB Monitoring Committee, the Monitoring Committees Secretariat, National Coordinators, and the Joint Management Committee.
The total budget of 550 million is allocated by recipient country, on the one hand, and by sector, on the other hand (Public investments/projects: 79%, private production investments: 20%, Fund for Small Projects: 1%).

            The allocation of the 550 million by recipient country and by sector can be presented as follows:

I)         Public investments/projects

In the public sector, which accounts for 79% of the total budget, there are projects, actions, studies and activities that are officially proposed by the governments of the recipient countries through their National Coordinators, with the submission of application forms. Public investment proposals are submitted by the recipient country through its National Coordinator and approved by the Greek HiPERB Monitoring Committee, which is presided over by the Foreign Ministrys Secretary General for International Economic Relations and Development Cooperation. The total available sum for the implementation of public investments/projects in all of the recipient countries comes to 421.8 million. To this day, the total of approvals for the implementation of public investments/projects in recipient countries is estimated at 163.4 million, accounting for 38.75% of the total budget for public investments/projects.

II)        Private production investments

The Finance Ministrys General Secretariat for Investments and Development is competent for private investments. Submitted requests are evaluated by this General Secretariat and are then put forward to the above-mentioned Ministrys competent Central Advisory Committee for approval. The HiPERB minimum and maximum subsidy for private investments is set between 800,000 and 5 million for investments in the manufacturing sector and 300,000 and 1.5 million in the agricultural sector, whereas the subsidys maximum rate is set at 30% of the investments total cost.

The available sum for strengthening private investments in all of the recipient countries totals 106.7 million. To this day, the level of subsidies approved by the Finance Ministrys Central Advisory Committee comes to 41.5 million. The total rate of absorbance for all the recipient countries is 38.91%.

III)      Fund for Small Projects

As provided for in the individual Development Cooperation Agreements (article A2) between Greece and each of HiPERBs seven recipient countries, 1% of the Plans total funds are placed at the disposal of Greeces competent Embassies for the Fund for Small Projects. This Fund can provide support to small-scale technical projects of an emergency nature and with an immediate impact on local communities. Each projects cost must not exceed 50,000.

Proposals for small projects are submitted to the Greek Embassy of the given recipient country, which then forwards it to the Foreign Ministrys Central Service, accompanied by a positive or negative evaluation, in order for the competent Directorate (Directorate B2) and the Deputy Foreign Ministers office to grant their final approval, which is a precondition for the implementation of any given project.

The available sum for the implementation of small projects in all of HiPERBs recipient countries comes to 5.3 million. To this day, total approvals for the implementation of small projects in recipient countries are estimated at a total cost of 2 million, accounting for 38.42% of the Fund for Small Projects total budget.

            In particular, actions and programmes per country are as follows:

Albania

-     Public investments/big-scale projects: An official proposal has been approved for upgrading the Sagiada-Konispol-Sarande Corridor (40.5 km in total length), of a total cost of 37,562,268.30 and a HiPERB participation of 30,049,814.64.

-     Private Investments: 13 proposals have been approved, of a total cost of 30,599,035 and a total HiPERB participation of 9,254,569. The rate of absorbance is estimated at 92.74% and 462 new jobs have been created.

-     Fund for Small Projects: 18 projects of a total cost of 212,495, whereas seven small projects of a total cost of 114,000 are also under examination.

Bosnia-Herzegovina

-     Public investments/big-scale projects: Reconstruction/renovation of the Greek-Bosnian Friendship government building in Sarajevo, with a total budget of 16,789,989 with HiPERBs participation estimated at 13,497,073. This building has now been completed. The proposal for the reconstruction of part of the Kasindo hospital (Serbia Pavillion) in eastern Sarajevo, of a total budget of 2,400,000 and HiPERB participation at 1,920,000.

-     Private Investments: no application for private investment subsidy has yet been approved.

-     Fund for Small Projects: To this day, 4 projects have been approved, with a total budget of 44,615, mainly in the field of social welfare, such as laboratory equipment, IT equipment, etc., whereas two other small projects of a total cost of 80,000 (40,000 each) are aimed at providing first-aid mobile units.

Bulgaria

-     Public investments/big-scale projects:

a.       Equipment for the Kurdzhali regional hospital operational ward (total cost: 918,420 HiPERB participation: 734,736),

b.       Medical equipment for the Vratsa regional oncology hospital (total cost: 175,000 HiPERB participation: 157,500),

c.       Construction of a regional oncology clinic in Smolyan (total cost: 1,425,884  HiPERB participation: 1,140,707), and

d.       the SeeLight project (South-East European Lambda Network Facility for Research and Education, Interbalkan optic fibre network infrastructure for Research and Education), an optic-fibre broadband network for the interconnection of academic communities (total cost: 6,028,451  HiPERB participation: 4,822,760).

-     Private Investments: 14 applications have been approved for subsidizing private production investments, with a total cost of 40,914,333. Five of them have already been completed. With the approval of these applications, the total of private investment subsidies comes to 12,274,300 (exceptionally exceeding the initially foreseen level of subsidies set at 10,858,000). Jobs created through the implementation of the above-mentioned investments exceed 1,581 (of which 334 are for seasonal employment).

-          Fund for Small Projects: 5 small projects have been approved to this day, of a total cost of 203,000, that is, 37.39% of the total budget (542,900).

Montenegro

-     Public investments/big-scale projects: The proposal relating to the funding of the upgrading of the oncology clinic of the Montenegro-Podgorica Hospital (renovation, additional work and purchase of equipment for the oncology clinics short-term treatment ward (total cost: 1,300,000 HiPERB participation: 1,040,000).

-     Private Investments: no application for private investment subsidies has been submitted as yet.

-     Fund for Small Projects: four small projects and actions of a total cost of 77,860 have been funded to this day.

 FYROM

-     Public investments/Big-scale projects:

a.       reconstruction of the Demir Kapija-Udovo-Smokvica-Gevgelija part of the Paneuropean Corridor X (of a total length of 33.2km), with a total  budget of 170 million, with HiPERB participation estimated at 50 million, and

b.       the SeeLight project (South-East European Lambda Network Facility for Research and Education, Interbalkan optic fibre network infrastructure for Research and Education), an optic-fibre broadband network for the interconnection of academic communities, (total cost: 2,007,787, HiPERB participation: 1,606,230).

-     Private Investments: 6 proposals have been approved to this day, (total cost: 9,744,924 total HiPERB subsidy: 2,923,477). The level of absorbance comes to 19.53% of the total and 442 new jobs have been created.

-     Fund for Small Projects: 8 proposals have been approved to this day for projects of a total cost of 365,000. These are mostly of a social character: purchase of first-aid mobile units for Skopje, Bitola and Tetovo, provision with medical equipment, etc.

  Romania

-     Public investments/Big-scale projects: 2 proposals have been approved to this day (with a total budget of 8,198,193 and HiPERB participation estimated at 6,558,554 ). These proposals relate to:

a.       the renovation-modernisation the Museum of the 21st century (Hellenistic exhibit wing) in Constanta, with a total budget of 2.5 million and HiPERB participation estimated at 2 million, and

b.       the SeeLight project (South-East European Lambda Network Facility for Research and Education, Interbalkan optic-fibre network infrastructure for research and education), an optic-fibre broadband network for the interconnection of academic communities, with a total budget of 5,698,193 and HiPERB participation at 4,558,554.

      The following projects are also under evaluation:

a.       A project for the reconstruction of the regional Medical Centre for emergency cases in Targu Mures, with a total budget of 10,718,134 and HiPERB participation estimated at 6,966,787.00, and

b.       The St Maria Childrens Emergency Hospital in Iasi, (total cost: 4,437,185 HiPERB participation: 3,590,000).

-     Private Investments: 19 proposals have been approved to this day (total cost: 43,020,445 HiPERB participation: 12,192,733.50). The rate of absorbance comes to 86.55% and 944 new jobs are created.

-     Fund for Small Projects: 9 small projects have been approved to this day, with a total cost of 429,900, accounting for 61.03% of the total budget (704,300).

  Serbia

-          Public investments/Big-scale projects: 2 proposals have been approved to this day, with the total HiPERB fund estimated at 104,900,673. These proposals concern:

a.       The construction of the part of the Paneuropean Corridor X between Nis (Serbia) and FYROMs borders, of a total length of 86.7 km (total budget of 475 million and HiPERB participation estimated at 100 million), and

b.       the SeeLight project (South-East European Lambda Network Facility for Research and Education, Interbalkan optic-fibre network infrastructure for research and education), an optic-fibre broadband network for the interconnection of academic communities, of a total cost of 6,125,842 and HiPERB participation estimated at 4,900,673.60.

-     Private Investments: Available HiPERB funds amount to 46.5 million. To this day, 5 private investment subsidies have been approved, of a total cost of 4,464,210, accounting for 9.6% of the budget and creating 78 new jobs.

-     Fund for Small Projects: the maximum available subsidy comes to 2,325,000. 12 projects (for building and school repairs, support for elderly homes and hospitals, repair of a dam, etc.), of a total cost of 371,912, have been approved or implemented to this day, or are due to be completed soon.

Last modified: April 2007