06.16 Malopolskie - Economic development Tarnow
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1 06.16 Malopolskie - Economic development Tarnow 1. Basic Information 1.1. CRIS Number : 2002/ Title: Malopolskie - Economic development Tarnow 1.3. Sector : ESC 1.4. Location: Poland, Malopolskie Voivodeship, Wierzchoslawice Gmina 2. Objectives 2.1. Overall Objective: Increase of social and economic cohesion of the Malopolskie Voivodeship through the development of tourism Project purpose/ Immediate objective(s): - increasing region attractiveness for investment - Improvement conditions for tourism development - Improvement of environmental conditions 2.3. Accession Partnership and NPAA priorities The project is designed to address issues related to the AP priority in economic and social cohesion policy related to the preparation for the implementation of regional programmes and Community Initiatives. The project in particular responds to the economic criterion identified in the AP concerning improving the competitiveness of the Polish economy. The project corresponds also to the NPAA priority "Regional policy and co-ordination of structural instruments" Contribution to the National Development Plan The project is in line with the sixth axis of the Preliminary NDP, which is Strengthening development potential of regions and counteracting marginalisation of certain areas. The priorities of this axis will be implemented by means of several measures including development and modernisation of infrastructure serving to strengthen competitiveness of regions. The project is compliant with the priorities of the Operational Programme of the Malopolskie Voivodship Cross-Border Impact: N/A 3. Description 3.1. Background and justification: Wierzchoslawice Gmina is located on the outskirts of the large industrialised city of Tarnów, in the central part of the intensive economic development zone. Therefore it has served as a dormitory area for this centre, for many years. The positive migration balance observed here for last several years confirms the attractiveness of this gmina as a place to live. However, up to now the gmina s inhabitants have been employed mainly in large-scale industry. It causes dependence on this form of employment and a low level of entrepreneurship, as well as with cutbacks in large companies an increase in unemployment. Hence the need to take determined steps towards the improvement of the gmina s attractiveness to investors, as well as the development of SMEs. The gmina can boast of much strength. The area covered by the Project is to be crossed by the designated route of the A4 motorway (Kraków Przemysl) and its main transport node: Exit to Tarnów Exit to the road leading to Nowy Sacz Exit to the road leading North in the direction of Kielce and Warsaw. 20 SMEs operate in the area directly covered by the Project. Hence, such designation of the road has a significant economic importance. For future investors, and for entrepreneurs who develop their activities (gravel querry, transport or construction companies, and tourist agencies), the proximity of such a route is an argument for location of their offices and development of their activities. About 40 companies have declared an interest in setting up in the considered area. Due to easy access and the proximity of agricultural land suitable for 1
2 scientific experiments, the Agricultural University in Cracow is interested in investment in the educational/scientific infrastructure by adaptation of the existing facility. One of the strengths of the area covered by the Project are forest areas (50 % of the gmina area) and clean environment, incentives for tourism development. Due to gravel exploitation, several artificial lakes have been created in the area, with a total surface of 150 ha and Class I water quality, which highly improves the tourist attractiveness of the gmina. The gmina owns 20 ha of tourist and recreation areas surrounding the artificial lakes. Many investors are interested in taking by lease these terrain. The rent wil be paid to the gmina. Documented sources state that the gravel bearing zone covers an area of 600 ha (exploitation period 30 years). Thus, potentially, the surface area of artificial lakes may be enlarged by 450 ha. Considering the proximity of Tarnów and the advantages of the area, Wierzchoslawice may become a place for recreation, attracting many people from the region. To increase the attractiveness of the area it is necessary to build up the infrastructure that facilitates the tourism development. It will mainly consist of construction of the technical infrastructure (sewer system, a network of local roads connected to higher-level roads, car parks), as well as tourist infrastructure e.g. signposting paths and tourist routes for walking and cycling. Fees for using facilities are set every year by the local government and are identical for all entities operating in the gmina. Areas where the investment is to be located include rural areas with an unfavourable agrarian structure and poor soils. A large number of people were employed. Near to Tarnów, in the Nitrogen Plant currently undergo a major restructuring process. As a result, many people have lost their workplaces and returned to the countryside. In relation to the above, the implementation of the project will also become a stimulus for the development of small and medium sized enterprises, especially those providing tourist services. These cannot develop in the present circumstances, because without a sewer system such enterprises would constitute a hazard to natural environment. Provision of the sewer system and the modernisation of roads will also allow for the development and improvement of other non tourist-related businesses, such as construction or transport companies, and possibly increase in the output of gravel querry. The investment will therefore give the possibility of the creation of new workplaces, not only for the inhabitants of the gmina, but also for people from the surrounding areas. Implementation of the Project will also affect the preservation and improvement of environmental conditions. As early as 1999, a sewerage system was begun in the gmina using funds obtained from the Phare Inred Programme. Action taken within that programme enabled the gmina to be connected to the common sewage treatment plant, which has not yet fully used its capacity. In the following years, work was continued using the gmina s own funds. Regarding the necessity of the decrease of unemployment rate and attracting attention of investors, it seems to be essential to maintain the natural environment resources for the development of tourism. This will enable the economic development, and in consequence will positively influence the quality of life of residents of the Tarnów subregion Linked activities Phare Inred project implemented in the years Within the project, works initiating the construction of the sewer system in Wierzchoslawice Gmina were performed, and permitted the connection of this sewer system to the common sewage treatment plant. Owing to the implementation of this project, ca. 20% of the gmina became connected to the sewer system, and the common sewage treatment plant was allowed to use its capacity to a greater extent. Construction of a roundabout in Wierzchoslawice, A roundabout will be constructed at the crossroads of the voivodeship and local roads in the gmina in the second quarter of This will use funds from the Malopolskie Voivodeship and Wierzchoslawice Gmina. The roundabout will facilitate access to the areas covered by the project proposed for cofinancing within the Phare ESC 2002 Programme Results - Land development for recreational and tourist-related investments - 20 ha 2
3 km of sewer network connection of 76 % of Wierzchoslawice Gmina to the sewer network - Construction of a car park for 500 vehicles - Reduction in untreated waste by 1000 m 3 /day - Increase in the capacity of local roads - Facilitation of access to service areas 3.4. Activities - Construction of a sewer system network of km - Construction and modernisation of the local road network of 13.3 km - Construction of a cark park with an area of m2 - Construction of 1,800 meters of pavements along local roads - Modernization of the voivodeship road no 795 in the section of 4 km 4. Institutional framework 4.1 The beneficiary of the project will be Gmina of Wierzchoslawice. 4.2 The Engineer/ Project Manager will be appointed through a tender procedure organised by the Beneficiary in accordance with the Polish Public Procurement Law. 4.3 The owner of the facilities after project implementation will be Gmina of Wierzchoslawice. 4.4 The investment will be executed according to the Decentralised Implementation System (DIS) - Practical Guide to Phare, Ispa & Sapard contract procedures 4.5 Implementation of the project will not lead to any changes in the institutional framework described above. 5. Budget In MEUR Phare Support Investment IB Total Phare National cofinancing Project TOTAL IFI TOTAL The overall value of the investment including employment of the Project Manager will be 4.85MEUR. The cost of the employment of the Project Manager will be paid by beneficiary in amount of 0,145MEUR. Co-financing will be available. 6. Implementation arrangements 6.1. Implementation Agency PAO: Ms Ewa Freyberg, Undersecretary of State in the Ministry of Economy, Pl. Trzech Krzyzy 3/5, Warsaw, Phone: , Fax: Implementing Agency: Implementing Authority for Phare Cross Border Co-operation Programme Krucza 36 street, Warsaw, Poland phone , fax Twinning: N/A 6.3. Non-standard aspects: N/A 6.4. Contracts: Contract 1 (works): MEUR (including Phare funds) - joint co-financing Contract 2 (engineer): MEUR (financed from Polish funds only) 7. Implementation Schedule 7.1. Start of tendering fourth quarter Start of project activity: second quarter Project completion: third quarter
4 8. Equal Opportunities: Procedures related to the implementation of the project will be performed according to the law and will respect equal opportunities for all interested institutions and natural persons in spite of their sex, race and nationality. The employment of men and women will be based on applicable EU standards with reference to EOE (Equal Opportunity of Employment), which will be announced in official press advertisements during the recruitment procedures. 9. Environmental impact: The Investment Environmental Impact Report has been prepared in the form of a document drawn up by an independent body Biuro doradztwa analiz opracowan i projektów EKO- LEX (a counselling, analysis, project and research consultancy; the summary is contained in Appendix 4.1). A full report is available at the premises of Wierzchoslawice Gmina. The environmental impact during the construction, as stated in the report, will be of shortterm and will finish on completion of the investment. However, during the operation of the investment, the solutions in construction technology applied during the project and the technical methods of sealing the collector drains, guarantee that there will be no adverse impact of the investment on surface waters, underground water resources, soil and land, air, acoustics and human health. The investment will allow for significant decrease in the quantities of untreated sanitary waste leaking to the soil and underground water resources, with an ecological effect at the level of 66.4%. The report states that the facility meets all the environmental requirements. 10. Rates of return: A feasibility study report has been prepared in the form of a document drawn up by an independent institution Biuro doradztwa analiz opracowan i projektów EKO-LEX (the summary of which is contained in Appendix 4.2). The full report is available at the premises of Wierzchoslawice Gmina. FIRR 16.1 %, NPV = million zl for discount rate of 8%, NPV = million zl for discount rate of 5%, NPV = million zl for discount rate of 10%, NPV = 210 thousand zl for discount rate of 15% EIRR = % ENPV for discount rate 5% million zl 10% million zl 15% million zl 11. Investment criteria Catalytic effect: The Phare support will be conducive to achieving economic and social cohesion goals in Malopolskie voivodship, which otherwise could be attained only in a more distant future and on a more modest and less efficient scale Co-financing: The project is co-financed by the Polish sources. The national contribution amounts to 27 % of the total project cost. - joint co-financing Additionality: The financial means transferred to the Beneficiary for the project implementation, covering the investment costs as they are planned within the project do not displace other financing sources, especially from the private sector and the IFI system; it is solely the co-financing of identified priorities and does not replace national resources Project readiness and size: The project will be ready for implementation, contracting and disbursement in accordance with requirements of Phare 2002 ESC programme. The feasibility study and report from 4
5 environmental impact assessment have been prepared. The planning permit has been obtained. The acquisition of land for the investment has been completed. The Polish cofinancing has been allocated Sustainability: The project will contribute to the long-term sustainable development of the region, as described in the Operational Programme for Malopolskie Voivodship. The investment is sustainable and does not require any further expenditures apart from the ongoing technical maintenance financed by Gmina Wierzchoslawice Conformity with state aid provisions: All aspects of the project will be developed with respect to the state aid provisions of the European Agreement. 12. Conditionality and sequencing Achievement of the project objectives depends on Implementation of the Voivodeship development strategy, and especially creation of convenient conditions for the tourist sector companies in the region No uncontrolled disposal of waste Implementation of other tasks in the area of waste management in the Dunajec Basin Active marketing of the area s attractiveness to tourists Development of activities supporting SMEs on gmina level Cooperation between SMEs and inhabitants in the area of swage treatment in the region (e.g. construction of sewer connections by all waste-producing units) Deadlines: - Construction designs prepared by 3 rd quarter Obtaining the building permit by 4 th quarter Preparation of tender documents by 4 th quarter Completion of the contract by 4 th quarter 2005 Annexes: Annex 1. Logframe Matrix Annex 2-3. Implementation, contracting and disbursement schedule 5
6 Annex1: Logframe Matrix LOGFRAME PLANNING MATRIX FOR Programme name and number PHARE 2002-ESC Malopolskie - Economic development Tarnow Contracting period expires 30/11/04 Disbursement period expires 30/11/05 Total budget: MEUR Phare budget: MEUR Overall Objective Objectively Verifiable Indicators Sources of Verification Increase in the social and economic cohesion of the Malopolskie Voivodeship through the development of tourism. Decrease in regional unemployment rate Increase of SME s turnover - Report of the Voivodeship Self-Government Authorities based on GUS (Central Statistical Office) and WUS (Voivodeship Statistical Office) Statistics, and analyses.after 5 years from the Projet completion Project Purpose (Immediate Objective) Objectively Verifiable Indicators Sources of Verification Assumptions - increasing region attractiveness for investment - Improvement conditions for tourism development - Improvement of environmental conditions - 70 SMEs created in the area of the Project sustainable new workplaces - Increase in accommodation by ca.100 beds - Increase in the number of tourists by 2500 in the summer season - Preservation of Class I water quality in the artificial lakes within the project areas - Report by the Gmina of Wierzchoslawice, based on the data from, Gmina Office, WUS, Poviat Starostwo made 2 years after Project completion, qualitative surveys Results Objectively Verifiable Indicators Sources of Verification Assumptions - Land developed for recreational and tourist-related investments - The sewer network - Car parking lots - Increase in the level of the gmina s connection to the sewer network - Improved local road network - 20 ha land for recreational and tourist-related investments km of sewer network - car parking lots for 500 vehicles - Increase in the level of the gmina s connection to the sewer network from 20% to 75% - Construction and modernisation of the local road network of 13.3 km - Modernization of the voivodeship road no 795 in the section of 4 km - Report by the Gmina of Wierzchoslawice made directly after Project completion, based on the data from: Final Report, Project Engineer and Gmina Office Activities Means Assumptions - Construction of a sewer system network - Construction and modernisation of the local road network - Construction of a cark parking area - Technical documenation - One contract for the performance of construction work Implementation of other elements of the Voivodeship development strategy, and especially creation of convenient conditions for the tourist sector companies in the region No uncontrolled disposal of waste Implementation of other tasks in the area of waste management in the Dunajec Basin. Active marketing of the area s attractiveness to tourists Development of activities supporting SMEs at the gmina level Environmental cooperation of SMEs and inhabitants (e.g. construction of sewer connections by all waste-producing units) Obtaining of Phare ESC funds Investors declarations Timely execution of works Preconditions Resolution of the Managing Board of the Wierzchoslawice gmina no 192 of 28th February concerning gmina co-financing of the infrastructure construction plan of infrastructure for the development of investments in the area of industry, trade and tourism within the Tarnów subregion.. 6
7 Annex 2-3: Implementation, contracting and disbursement schedules Malopolskie - Economic development Tarnow Implementation schedule Contracting schedule Disbursement schedule PLANNED Date of drafting I 03 II 03 III 03 IV 03 I 04 II 04 III 04 IV 04 I 05 II 05 III 05 I II III IV V VI VII VIII IX X XI Planning period Phare Budget Allocation Cost Estimate in MEUR (1) (2) (3) D/C C/I I I I I I I I I I Legend: D = design of sub-projects C = tendering and contracting I = contract implementation and payment * amounts in EUR millions, cumulative
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