Estonia
Programmes summaries :

Operational programme 2007-2013: "Development of Living Environment"

1. "Development of Living environment" – a programme co-funded by the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) under the Convergence objective

2. The European Commission approved on 10 October 2007 a major development programme in Estonia for the period 2007-2013, entitled "Development of Living Environment". It involves European Union support for Estonia within the framework of Convergence objective. The total budget of the programme is around EUR 1.9 billion and Community investment through the ERDF and CF amounts to EUR 1.6 billion (approximately 47.2 % of the total EU money invested in Estonia under Cohesion policy 2007-2013).

3. The purpose and aim of the EU investment

The programme aims at improving the quality of life in Estonia in environmental and social terms. Therefore, the OP lays basis for long-term sustained growth of Estonia.

Major investments will be directed into fulfilling EU directives on water, wastewater and solid waste management. Furthermore, environmental protection will be improved by dedicating resources to environmental education and constant monitoring. Estonia will be better equipped to fight environmental emergencies, such as forest fires and accidents at sea – particularly with oil tankers.

The OP will also improve infrastructure for services in a large number of local communities, thus solving important social issues hindering economic development. In addition, there will be major improvements in vocational training infrastructure, boarding schools infrastructure, schools for students with special educational needs etc.

Support will be given to the modernisation and optimisation of the hospitals networks in order to provide better and more accessible services. Better living, learning and working conditions will also be provided for children and for adults with special psychiatric needs living in welfare institutions.

4. The expected impact of the investment

55 000 persons will be provided with new public drinking water and sewerage systems. The improvement of environmental conditions will lead to nine river ecosystems being cleaned to promote spawning fish migration.

All environmentally inadequate industrial and domestic waste dumps will be closed down.

An almost five-fold increase is foreseen for the generation of energy from renewable sources. The share of bio fuels in transport is expected to rise to 8%.

It is expected that at least 120 000 people will benefit directly from new infrastructure provided in local communities, based on the needs of these communities. 1500 students with special needs will be able to study in a fully modernised environment, and 90% of studying facilities in vocational education centres will be modernised.

5. Priority axis

The programme will be implemented through six main priorities and technical assistance. .

Priority 1: Development of water and waste management infrastructure

Supply of drinking water will be improved, water protection infrastructures will be provided. Waste management will focus on decontaminating oil shale waste dumps and constructing new environmentally sound industrial and municipal waste landfills as well as closing and rehabilitating old environmentally hazardous landfills.

Priority 2: Development of infrastructures and support systems for sustainable use of the environment

Within this priority the following actions are foreseen: development of environmental education infrastructure, improvement of environmental monitoring and supervision, preservation of biological diversity and improvement of preparedness for environmental emergencies.

Priority 3: Development of energy sector

Energy efficiency and environmental performance of energy use will be improved through supporting broader use of renewable energy and energy saving in distribution networks and by final consumers, including the housing sector.

Priority 4: Integral and balanced development of regions

Development of local public services to improve living conditions in rural regions, alleviation of urban problems and strengthening of regional competitiveness. Promoting cooperation between rural regions and towns.

Priority 5: Development of educational infrastructure

Actions foreseen are: modernisation of vocational education facilities, provision of schools intended for children with special educational needs, open youth centres, information and counselling centres and hobby schools.

Priority 6: Development of health and welfare infrastructure

Acute and nursing care hospitals and state welfare institutions for children and for people with special psychiatric needs will be modernised.

Priority 7: Horizontal Technical Assistance:

Measures common for all programmes to ensure the proper management of the funds, such as monitoring of assistance, evaluation, training of officials, support for project preparation and management, publicity measures etc.

Priority 8: Technical assistance:

Support for specific measures relating to the implementation of the programme.

6. Responsible Authority and contact details

Ministry of Finance:
Managing Authority for Operational Programme "Development of economic environment"
Address: Suur-Ameerika 1, Tallinn 15006
Tel. +372 611 3558
E-mail: info@fin.ee, katri.seier@fin.ee
Web: http://www.fin.ee/

Operational programme 2007-2013: "Development of Economic environment"

1. "Development of Economic environment" – a programme co-funded by the European Regional Development Fund (ERDF) and the Cohesion Fund (CF) under the Convergence objective

2. The European Commission approved on 10 October 2007 a major development programme in Estonia for the period 2007-2013, entitled the Operational Programme (OP) "Development of Economic Environment". This programme involves European Union support for Estonia within the framework of Convergence objective. The total budget of the programme is around EUR 1.7 billion and the Community assistance through the ERDF and CF amounts to EUR 1.4 billion (approximately 41.3 % of the total EU money invested in Estonia under Cohesion policy 2007-2013). The objectives of the OP are complemented by investments from the Human Resources development programme supported by the European Social Fund (approximately 11.5 % of the total funds).

3. The purpose and aim of the EU investment

Estonia has made significant progress in economic development during last 15 years and particularly after its accession to the EU in 2004. Estonia has attracted much foreign investment, modernised the productive environment and is among the leaders in the use of IT solutions in society.

The OP for Economic Environment aims at further improving the environment where economic competitiveness and productivity of enterprises can increase. This will lead to better and more sustainable transport infrastructure reaching all the regions and Trans-European networks (TEN) connecting Estonia with neighbouring countries and the central part of Europe, improvement of public transport networks, enhancement of the research and development system in the country, raising the growth capacity of enterprises and supporting the development of information society.

The programme will support a wide range of economic activities, from technology-intensive industries to tourism and development of creative industries (design, architecture etc.). Economy and enterprises will mainly benefit from investments improving the environment (better knowledge creation in universities, better transport network, improved public services), but there will not be direct financial support to companies.

4. The expected impact of the investment

77.69% of the investment available has been "earmarked" for Lisbon-related expenditure. The OP aims at permanently increasing the GDP growth rate in Estonia.

Major infrastructure projects will be undertaken to improve the flow of traffic in and around Tallinn. Regional centres will receive better links with Trans-European Networks. The programme aims at maintaining the competitiveness of public transport in Estonia at least on the current level, especially by providing sustainable electric transport in and around Tallinn.

The programme aims to double the productivity of labour force by 2015, to increase the number of exporters by 30%, to increase investments of enterprises in the research and development (R&D) sector from 1.6% of GDP to 2.6%. 800 scientists will benefit from modernised scientific equipment, 25,000 m3 of research space will be upgraded.

The number of tourists visiting Estonia is expected to grow by 75%.

5. Priorities

The programme will be implemented through five main priorities and technical assistance. Priority 1: Innovation and growth capacity of enterprises

Investment is foreseen for the development and productivity growth of enterprises from all sectors of the economy by increasing their research and development and innovation capacity; development of tourism and creative industries.

Priority 2: Improving the competitiveness of Estonian R&D through the research programmes and modernisation of higher education and R&D institutions

Investment is granted for the development of thematic R&D programmes targeted at long-term economic development focusing on the areas where Estonia has strong scientific potential, as well as for the development of centres of excellence, infrastructure and equipment of R&D and higher education institutions. Better international cooperation is envisaged.

Priority 3: Transport investments of strategic importance

Provision of the infrastructure needed to ensure international flow of goods on Trans-European Networks and clean and efficient means of public transportation for the capital, Tallinn.

Priority 4: Development of regional transport infrastructure

Improvement of the accessibility of Estonian regions is foreseen. Secondary road network will be improved, regional ports and airports will be upgraded.

Priority 5: Development of information society

Accessibility of the IT network will be improved, especially for people with special needs. The transparency of decision procedures in municipal and central government level, will be improved, giving people the possibility to participate in the process. Quality of e-services in the public sector will be improved.

Priority 6: Horizontal Technical Assistance

These measures will ensure the proper management of the funds, such as monitoring of assistance, evaluation, training of officials, support for project preparation and management, communication and information activities.

Priority 7: Technical assistance

Support for specific measures relating to the implementation of the programme.

6. Responsible Authority and contact details

Ministry of Finance:
Managing Authority for Operational Programme "Development of economic environment"
Address: Suur-Ameerika 1, Tallinn 15006
Tel. +372 611 3558
E-mail: info@fin.ee, katri.seier@fin.ee

Web: http://www.fin.ee/