Partnership Agreement
Republic of Lithuania
PARTNERSHIP AGREEMENT
June 20, 2014
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Partnership Agreement
Table of Contents
Abbreviations and definitions ............................................................................................................................5
1. MISSION OF FUNDS AND THEIR ALIGNMENT WITH THE EU STRATEGY OF SMART,
SUSTAINABLE AND INCLUSIVE GROWTH ..............................................................................................8
1.1. Current situation analysis, challenges and growth potentials ......................................................................8
1.1.1. General overview .....................................................................................................................................8
1.1.2. Key development challenges and growth potentials ..............................................................................11
1.1.2.1. Smart growth challenges: R&D and innovation promotion, ensuring quality in education, efficiency
in public governance and development of digital society ................................................................................11
1.1.2.1.1. Innovativeness and investments into RDI ........................................................................................11
1.1.2.1.2. Ensuring quality in education, openness and creativity ...................................................................18
1.1.2.1.3. Ensuring efficiency of public administration ...................................................................................24
1.1.2.1.4. Development of the digital society ...................................................................................................27
1.1.2.2. Challenges of sustainable growth – development of modern basic infrastructure, creation of better
business environment and sustainable and efficient Use of natural resources .................................................33
1.1.2.2.1. Development of modern basic infrastructure ...................................................................................33
1.1.2.2.2. Creation of a better environment for business ..................................................................................41
1.1.2.2.3. Sustainable and efficient use of natural resources ............................................................................48
1.1.2.3. Challenges to inclusive growth – promotion of employment and reduction of poverty and social
exclusion through their alignment with social and territorial cohesion targets ................................................65
1.1.2.3.1. Promotion of employment ................................................................................................................65
1.1.2.3.2. Reduction of poverty and social exclusion .......................................................................................67
1.1.2.3.3. Territorial development ....................................................................................................................72
1.2. Summary of the ex ante evaluation ...........................................................................................................78
1.3. Summary of the results of each thematic objective in respect of each fund..............................................83
1.3.1. Strengthening research, technological development and innovation .....................................................83
1.3.2. Enhancing access, use and quality of ICT ..............................................................................................86
1.3.3. Enhancing competitiveness of SMEs, the agricultural sector (for the EAFRD) and fisheries and
aquaculture sector (for the EMFF) ...................................................................................................................88
1.3.4. Supporting the shift towards a low carbon economy in all sectors ........................................................92
1.3.5. Promoting climate change adaptation and risk prevention and management.........................................94
1.3.6. Protecting the environment and promoting resource efficiency .............................................................95
1.3.7. Promoting sustainable transport and removing bottlenecks in key network infrastructures ................101
1.3.8. Promoting employment and supporting labour mobility ......................................................................103
1.3.9. Promoting social inclusion and combating poverty .............................................................................106
1.3.10. Investing in education, skills and lifelong learning ............................................................................109
1.3.11. Enhancing institutional capacity and ensuring efficient public administration ..................................114
1.4. Indicative allocations by thematic objective for each ESI Fund .............................................................117
1.4.1. Indicative allocation of financial resources by thematic objective for each of the ESI Funds .............117
1.5. Application of horizontal principles ........................................................................................................119
1.5.1. Partnership principle.............................................................................................................................119
1.5.2. Promotion of equality between men and women, non-discrimination .................................................123
1.5.3. Sustainable development ......................................................................................................................125
1.5.4. Youth ....................................................................................................................................................129
1.6. The list of operational programmes with preliminary allocations by fund and by year ..........................131
2. ARRANGEMENTS TO ENSURE EFFECTIVE IMPLEMENTATION..................................................133
2.1. Arrangements to ensure coordination between the ESI Funds and other Union and national funding
instruments and with the European Investment Bank (EIB) ..........................................................................133
2.1.1. Coordination between the ESI funds, European Territorial Cooperation (ETC) Programmes and the
EUSBSR .........................................................................................................................................................133
2.1.2. Coordination between the ESI Funds and other Union and national financing instruments and with the
EIB .................................................................................................................................................................136
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2.2. Ensuring additionality .............................................................................................................................141
2.3. A summary on the fulfilment of applicable ex ante conditionalities .......................................................141
2.4. Methodology and mechanism to ensure consistency in the functioning of the performance framework141
2.5. Reinforcement of administrative capacity ...............................................................................................145
2.5.1. Reinforcement of administrative capacities among bodies responsible for administration .................145
2.5.2. Reinforcement of administrative capacities among beneficiaries ........................................................149
2.6. Reducing administrative burden for beneficiaries ...................................................................................151
3. INTEGRATED APPROACH TO TERRITORIAL DEVELOPMENT ....................................................155
3.1. Integrated approach to the use of support for the territorial development of specific sub-regional areas
........................................................................................................................................................................158
3.1.1. Community-led local development (CLLD) ........................................................................................158
3.1.1.1. General concept .................................................................................................................................158
3.1.1.2. CLLD territory ..................................................................................................................................159
3.1.1.4. CLLD integrated approach ................................................................................................................162
3.1.1.5. Coordination of CLLD implementation, the role of LAGs ...............................................................162
3.1.1.6. Preparatory support ...........................................................................................................................164
3.1.2. Integrated territorial investments (ITIs) ...............................................................................................164
3.1.3. Sustainable urban development, including the urban areas where integrated sustainable urban
development actions are to be implemented ..................................................................................................166
3.1.4. Main priority areas for cooperation, under the ESI Funds, taking account, where appropriate, of macroregional strategies ...........................................................................................................................................167
4. ARRANGEMENTS TO ENSURE EFFICIENT IMPLEMENTATION OF THE PARTNERSHIP
AGREEMENT ...............................................................................................................................................171
4.1. Assessment of the existing systems for electronic exchange and possibilities to share all information by
electronic exchange only ................................................................................................................................171
FIGURES
Figure 1. Cumulative indicators of the Innovation Union Scoreboard: comparison of the Lithuanian and
EU average
Figure 2. Integrated territorial development model
TABLES
Table 1. Europe 2020 targets and current situation in Lithuania
Table 2. Indicative allocation of support by the Union by thematic objective for each of the ESI Funds
(EUR) (preliminary)
Table 3. Funds allocated to the Youth Employment Initiative under thematic objective 8
Table 4. Allocations to technical assistance by category of region and fund
Table 5. ESF share in all the Structural Funds (ESF and ERDF)
Table 6. Rural population by age, emphasising age groups of the youth and young farmers
Table 7. List of operational programmes with preliminary allocations by ESI Fund and by year
Table 8. Allocations related to the performance reserve by ESI Fund and by category of regions
Table 9. Ensuring additionality in 2014-2020
Table 10. Reducing administrative burden of EU Structural and Cohesion Fund 2014–2020
Table 11. Preliminary distribution of support to ITIs, except for the support provided for in Section 3.1.3
(total amount)
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Table 12. Indicative allocation at national level to integrated actions for sustainable urban development
under the ERDF
Table 13. Indicative schedule for the adaptation of the information system to the 2014-2020
programming period
ANNEXES
Annex 1. Partner List
Annex 2. Identification of Ex Ante Conditionalities and Evaluation of their Fulfilment
Annex 3. Compatibility between ESI funds
Annex 4. Experience from 2007-2013 in Implementing CLLD Initiatives
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Abbreviations and definitions
ALMP – active labour market policy
ASIT – Agency for Science, Innovations and Technology
CAP – Common Agricultural Policy
CCIs –creative and cultural industries
CEF – Connecting Europe Facility
CFP – Common Fisheries Policy
CLLD – community-led local development
CO2 – carbon dioxide
DEW – data exchange website
EAFRD – European Agricultural Fund for Rural Development
EAGF – European Agricultural Guarantee Fund
EEA – European Economic Area
EC – European Commission
EIB – European Investment Bank
EMFF – European Maritime and Fisheries Fund
ERDF – European Regional Development Fund
ERTMS – European Rail Traffic Management System
ESCO – Energy Service Company
ESF – European Social Fund
ESFRI – European Strategy Forum for Research Infrastructures
ESI Funds – European structural and investment funds (ERDF, ESF, Cohesion Fund, EMFF,
EAFRD)
EU Structural and Cohesion Funds – ERDF, ESF and Cohesion Fund
ETC – European territorial cooperation
EU – European Union
EUR – Euro
EURES – European Job Mobility Portal
EUSBSR – Strategy of the European Union for the Baltic Sea Region
FCIS – Financial Crime Investigation Service under the Ministry of the Interior
FDI – foreign direct investments
GAEC – good agricultural and environmental condition
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GDP – Gross Domestic Product
GHG – greenhouse gas
GMO – genetically modified organisms
HNV – high nature value
IAP – inter-institutional action plan
ICT – information and communication technologies
ISARDP – Information System for the Administration of the Rural Development Plan Measures
ISCED – International Standard Classification of Education
ISDC – Information Society Development Committee under the Ministry of Transport and
Communications
ITI – integrated territorial investment
ITS – intelligent transport system
LAG – local action group
LDS – local development strategy
LNG – liquefied natural gas
LPIS – land parcel identification system
LR – Republic of Lithuania
LTL – Litas
RMDP – Road Maintenance and Development Programme
MCS – management and control system
NGO – non-governmental organisation
NPA – National Paying Agency under the Ministry of Agriculture
NDP – National Development Programme 2014-2020 approved by Resolution No 148 of 28
November 2012 of the Government of the Republic of Lithuania
NMVOC – non-methane volatile organic compounds
NRA – National Reform Agenda
OAC – open access centres
OECD – Organisation for Economic Cooperation and Development
PFAA – project funding and administration agreement
PIRLS – Progress in International Reading Literacy Study
R&D – research and development
RDI – research, development and innovation
RDP – Rural Development Programme
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RES – renewable energy sources
RHEMC – Research and Higher Education Monitoring and Analysis Centre
SDS – statistical data storage
SFMIS – computerised information system for the management and control of the EU structural
assistance
SME – small and medium-sized enterprise
SMR – standardised mortality ratio
SODRA – State Social Insurance Fund Board under the Ministry of Social Security and Labour
STI – State Tax Inspectorate
SUMP – sustainable urban mobility plans
SWOT analysis – analysis of strengths, weaknesses, opportunities and threats
TEN-T – Trans-European Transport Networks
TEU – twenty-foot equivalent unit
TIMSS – Trends in International Mathematics and Science Study
PLC – Public Logistics Centres
ŽŪIKVS – Agricultural Information and Rural Business Centre
ŽŪMIS – information system for the provision of e-services by bodies and agencies within the
regulatory scope of the Ministry of Agriculture
ŽŪPAIS – Information System for the Administration of Support to Agriculture
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1. MISSION OF FUNDS AND THEIR ALIGNMENT WITH THE EU
STRATEGY OF SMART, SUSTAINABLE AND INCLUSIVE GROWTH
1.1. Current situation analysis, challenges and growth potentials
1.1.1. General overview
From 2004 to 2012, the Lithuanian economy grew by 3.55% per year on average. The
economic growth was stimulated by the added-value generated by sectors of construction, real
estate, rent, wholesale, retail, transport, warehousing, and by communications enterprises. At that
time, export positions of traditional industries strengthened, exports of agricultural produce and
food products grew and the share of this production in the total structure of the country’s exports
increased and created a positive foreign trade balance. In 2007, a record low unemployment rate
was observed standing merely at 4.3%. In 2008, Lithuania’s gross domestic product (GDP)
exceeded the record threshold of LTL 122 billion (EUR 35.33 billion) at the prices of that
period; the average net pay amounted to LTL 1,651 (EUR 478.16). The share of tangible
investments accounted for 23.5% in the GDP structure in 2007.
Lithuania’s rapid economic growth was slowed down by the global financial and
economic crisis. In 2009, Lithuania’s real GDP reduced by nearly a fifth and the Lithuanian
economy suffered the greatest recession since 1993. The global downturn considerably limited
possibilities for exports, the consumption of households and private enterprises and investments
shrank in particular. Unemployment started growing – compared to 2007, it grew by 1.5%. In
2010, a record unemployment rate of 17.8% was observed in Lithuania, the average monthly pay
reduced. The share of tangible investments in the GDP structure reduced more than twofold from
2007 to 2010. In 2010, this indicator was merely 11.9%.
Signs of the economic recovery have been recorded since 2010. However, the growth
was rather slow and depended on the situation in the European Union (EU) and the global
economy, as well as on other key trade partners. Since 2010, the GDP growth was stimulated by
real net exports of goods and services, gross fixed capital formation (which in Lithuania is
primarily associated with domestic investments into civil and engineering constructions built by
the state and state-owned companies), and by the recovering modernisation of production in the
private sector. Since 2011, the growth of tangible investments was observed – they grew by LTL
2.7 billion (EUR 0.78 billion) compared to 2010 and amounted to LTL 14 billion (EUR 4.05
billion) (13.2% of GDP), in 2012 tangible investments grew further by nearly LTL 0.5 billion
(EUR 0.14 billion). Unemployment reduced by 2.1 percentage points over the period of 20112012.
To sum it up, Lithuania stands out as a Member State that has demonstrated a rapid
growth during the recent 10 years in comparison to the EU. However, it is a Member State with
the highest emigration rate in the EU – the net annual emigration accounted for 4.4% from 2000
to 2010. Unemployment, long-term unemployment in particular, remains high and exceeds the
EU average (in 2012, unemployment accounted for 13.3% in Lithuania, while in the EU it stood
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at 10.5%). Lithuania badly lags behind in terms of the key welfare indicator – life expectancy,
especially among men. Lithuanian men’s life expectancy is the shortest in the entire EU.
According to the data of the 2012 study on income and living conditions, the risk of poverty or
social exclusion was experienced by 32.5 million of the Lithuanian population. Lithuania was the
fifth poorest country in the EU (the EU average is 24.8%) by this indicator.
The National Reform Agenda (NRA) is one of the key national documents, which
establishes Lithuania’s commitment to achieve Europe 2020 targets. A large gap between the
current values of Lithuania’s national targets and the target values for 2020 is seen in most
priority areas of Europe 2020 (employment, research and development (R&D), climate change
and energy, education, poverty and social exclusion) (see Table 1). The formal indicators of
Lithuanian education, which are among the best in the EU and reached the national targets for
2020 already in 2013, are an exception. Therefore, the NRA contains a set of regulatory and
investment measures to ensure the achievement of Europe 2020 targets.
Table 1. Europe 2020 targets and current situation in Lithuania
Current situation in
Lithuania
0.92% (2011)
Europe 2020 headline targets
3% of the EU’s GDP to be invested in R&D
A 20% reduction in greenhouse gas emissions
-4% (2011)
20% of energy from renewable energy sources
A 20% increase in energy efficiency
75% of the 20-64 year-olds to be employed
Reducing school drop-out rates below 10%
At least 40% of 30-34–year-olds completing third level
education
At least 20 million fewer people in or at risk of poverty and
social exclusion
20.3% (2011)
-4.5% (2011)
68.7% (2012)
6.5% (2012)
National
target for 2020
1.9%
not more than
+15%
23%
-17%
72.8%
< 9%
47.9% (2012)
47.9%
1,080,000 (2011)
814 000
The gap between the current situation of Lithuania and the target values of the relevant
indicators were assessed in the Council‘s country specific recommendations 2014 which noted
that Lithuania should reinforce the budgetary measures in the light of expenditure growth
exceeding the benchmark; complement the budgetary strategy with a further strengthened fiscal
framework; further review the tax system and consider increasing those taxes that are least
detrimental to the growth of economy, such as recurrent property and environmental taxation; to
complete the reform of state-owned enterprises by ensuring, in particular, the separation of
commercial and non-commercial activities; adopt and implement legislation on a comprehensive
pension system reform in order to promote employability of older workers; better target active
labour market measures to the low-skilled and long-term unemployed; address persistent skills
mismatches by improving the labour-market relevance of education and promote life long
learning; to continue to strengthen the links between cash social assistance and activation
measures. One of the recommendations concerns improving of energy efficiency of buildings by
eliminating barriers precluding a more rapid implementation of the holding fund initiative;
further development of cross-border connections to neighbouring Member States for both
electricity and gas.
The NRA is based on an optimistic macroeconomic growth forecast for the Lithuanian
economy. It also provides for the fulfilment of commitments under the Euro-Plus Pact, which is
mainly focussed on four areas: fostering competitiveness, fostering employment, contributing to
the sustainability of public finance and reinforcing financial stability. Whereas the Convergence
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Programme additionally emphasises macroeconomic stability, business development and the
reforms of pensions, education, health care systems, reduction of energy dependence on fossil
fuel and other structural reforms necessary for sustainable economy.
The position of the Commission services on the development of the Partnership
Agreement and programmes in Lithuania for the period 2014-2020 calls for optimising the use of
the European Structural and Investment Funds (ESI Funds) by establishing a strong link to
productivity and competitiveness-enhancing reforms, leveraging private resources and boosting
potential high growth sectors. Together with the European Commission, it emphasises the need
to preserve solidarity within the EU and ensure the sustainable use of natural resources. It states
that the most complicated challenges for Lithuania are related to an investment-friendly business
environment; modern infrastructure for economic growth and job creation; maximising the use
of the labour force’s potential and reducing youth unemployment; the sustainable and efficient
use of natural resources.
The National Development Programme (NDP) for 2014-2020, intended for the
implementation of the Lithuanian Development Strategy ‘Lithuania 2030’, is aimed at the
creation of an advanced, modern and strong state distinguished by the harmony of smart society,
smart economy and smart governance. The NDP covers not only the major provisions of the
national policy but also the main provisions of the EU policy set forth in Europe 2020. The NDP
sets out directions for the implementation of the national long-term priorities, establishes
proportions of the EU financial support to the implementation of the national long-term priorities
during the 2014-2020 programming period. The following five vertical priorities are set out in
the NDP: ‘Development of the society, science and culture’, ‘Active and solidarious society’,
‘Favourable environment for economic growth’, ‘High value-added focuses, integral economy’
and ‘Advanced public governance meeting the society’s needs’, as well as three horizontal
priorities, i.e. ‘Culture’, ‘Regional development’ and ‘Health for all’ which can be implemented
through vertical priorities.
The EU Strategy for the Baltic Sea Region (EUSBSR) is another important strategic
document which identifies the development needs that are important for Lithuania at the regional
level and the growth potential. The EUSBSR, which is closely linked with Europe 2020 and
contributes to the implementation of this strategy, outlines several challenges which very are
characteristic for the Baltic Sea Region, such as poor ecological condition of the Baltic Sea, a
lack of transport and electricity interconnections and climate change, which cannot be properly
solved by efforts of one country and call for actions at the regional level. In order to overcome
these challenges, constructive cooperation of the states in the region and active engagement of
ministries within the states which should be guided by a coordinated international strategic
approach in their work are important. Only in this way it is possible to improve the ecological
condition of the Baltic Sea, ensure energy security, improve the transport system in the region,
adapt to climate change, boost the competitiveness and innovation capacities of regional
enterprises, etc. It should be noted that the EUSBSR allows to tackle cross-border challenges
more effectively, which in turn has a positive impact on the overall development of the country’s
economy and contributes to the objectives of the Blue Growth Strategy.
Drawing on the experience in implementing operational programmes for 2007-2013 and
the examples of best practice, national and regional strategic documents, as well as the
comparison of the major social and economic indicators of Lithuania and the EU, and taking into
account the Council’s country-specific recommendations for Lithuania, the analysis of territorial
differences, the potential for growth and development needs was performed and the following
major challenges which are in line with Europe 2020 priorities were identified:
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(1) Efforts to achieve smart growth face challenges related to the promotion of RDI, the quality
of education, the efficiency of public administration and the development of digital society;
(2) Efforts to achieve sustainable growth face challenges related to the development of basic
modern infrastructure, the creation of a better business environment, as well as the sustainable
and efficient use of natural resources;
(3) Efforts to achieve inclusive growth face challenges of promoting employment and reducing
poverty and social exclusion in aligning them with the targets of social and territorial cohesion.
1.1.2. Key development challenges and growth potentials
1.1.2.1. Smart growth challenges: R&D and innovation promotion, ensuring quality in
education, efficiency in public governance and development of digital society
1.1.2.1.1. Innovativeness and investments into RDI
In the Innovation Union Scoreboard 2013 (the Scoreboard), Lithuania is listed 23rd
among the EU Member States according to the Summary Innovation Index. Over last five years,
Lithuania advanced from modest innovators to moderate innovators nearly in all indicators used
in the Scoreboard. Despite the progress, Lithuania still considerably lags behind the EU average
(see Fig.1), particularly in terms of indicators measuring innovative activities of enterprises and
economic results of R&D and innovation (RDI).
Progress in RDI is impeded by poor efficiency of investments and different scope of
investments into RDI by the public and private sectors. Although the share of RDI funding from
the public sector expressed in percentage from the GDP differs from the EU average only
slightly, Lithuania is in the penultimate position by the efficiency of these investments according
to the Commission’s report ‘The State of the Innovation Union 2012’. Expenditure of the
Lithuanian business sector on R&D is over five times lower than the EU average. In 2011, the
expenditure of the business sector on R&D per capita amounted to EUR 24.1 in Lithuania,
whereas the EU average was EUR 318.4, according to Eurostat. It is also notable that over the
2007-2011 period the difference from the EU average in terms of business expenditure on R&D
did not reduce, but increased. Lithuanian business enterprises try to compensate for low R&D
capacities by choosing alternative innovation generation methods. This is evidenced by the
largest expenditure of enterprises on innovation which are not based on R&D among the EU
Member States.
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Figure 1. Cumulative indicators of the Innovation Union Scoreboard: comparison of the Lithuanian and EU
Average
Source: Innovation Union Scoreboard 2013.
Lithuania’s research potential in stimulating RDI development strengthens every
year. This is reflected by the increasing number of international joint scientific publications and a
considerable growth in the share of frequently cited scientific publications. Over the recent years,
Lithuania’s progress in these areas has been much faster than in the majority of the EU Member
States. Lithuania is nearly in line with the EU average in terms of the success index of
participation in the Seventh Framework Programme. Despite the progress made in the above
areas, the openness and attractiveness of the Lithuanian RDI system remains insufficient, and the
gap is still considerable. This is obviously reflected by a very low interest in PhD studies in
Lithuania among citizens of the third countries, a relatively low number of applications for
projects under the Seventh Framework programme and similar indicators.
Lithuania distinguishes fairly greatly from other EU Member States by uneven
distribution of R&D workers in the private and public sectors: only 12.7% of R&D workers were
employed in the business sector in 2012. Such structure of R&D human resources impedes
processes aimed to stimulate relations between research and business in conducting R&D, as
well as creating and introducing innovation.
Therefore, investments in the 2007-2013 period saw comprehensive improvements in
career conditions for R&D workers, subsidies were granted to scientists, support was provided to
the mobility of scientists and other researchers, the state aid was provided for the employment of
scientists in enterprises, professional development and development of competences of scientists
and other researchers, and the dissemination of knowledge on R&D. The implementation of the
above and other measures has not been completed, and the data used in the Scoreboard covers
only the statistical data from 2010 and 2011. Therefore, in order to achieve a sustainable and
long-term impact of the above measures on R&D human resources and indicators of the research
system in particular, it is important to ensure further improvement of RDI human resources.
Moreover, taking into account the persisting significant gap, it is very important to continue
increasing the openness of the research system, strengthen international competitiveness and
excellence in the 2014-2020 programming period.
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RDI infrastructure. The funding of the RDI infrastructure from the 2007–2013
envelope was mainly used for the implementation of valley infrastructure projects – development
of joint research centres, science and technology parks (R&D), technology transfer centres,
purchases of the laboratory facilities needed for their functioning. However, in spite of larger
investments the ambitious objectives raised in valley programmes are not fully achieved yet –
the largest projects, in particular, those involving construction works 1, were behind the schedule
which lead to subsequent delays in operational arrangements for the open access centres (OAC),
i. e. in many instances the decisions concerning management and organisational structure of the
OACs are still pending, the OAC action plans lack clear vision on how the purchased or
developed facilities will be used, there is a lack of human resources that are needed for the
operationalisation of the purchased or the developed infrastructure2.
Another important problem is that the developed R&D infrastructure is under-exploited.
Not all innovation support, knowledge and technology transfer services of R&D, business
incubators and other actors of the valleys match the needs of the applicant enterprises. This
results from several reasons3:
1) STP do not target specific services that might be needed for high value added generating
enterprises and are offering general services that can be used by a wide range of
enterprises instead;
2) The choice of services to be offered by STP is significantly influenced by the source of
financing (for instance, an STP offers consulting, financing and partner search services
because these activities are supported as part of the implemented STP projects).
The current problems have also partially resulted from the lack of coordination on both
inter-institutional and infrastructure planning level, because once political consensus concerning
establishment of the valleys was reached, further planning of infrastructural development was
mostly undertaken within the framework of valley projects. Therefore the investments were
fragmented and the opportunities provided by the 2007-2013 funding of RDI infrastructure were
not fully employed.
With regard to planning of the investments of the 2014–2020 period, it is important to
ensure as efficient use of the existing infrastructure as possible: to ensure open access to the
institutions participating in the establishment and the development of the valleys, and to the
laboratory equipment (development of OAC); to fully employ the potential of the Science and
Technology Parks (optimisation of the STP network, improvement of the quality of the offered
services); to promote the establishment of the competence centres engaging in RDI that match
the needs of the public and the private sectors and are relevant for the science-intensive
businesses, social and cultural innovations, and in the development and introduction of new
products. There remains a need to continue investing into the highest quality infrastructure
needed for research and innovations because the development of integrated science, studies and
business centres is not completed yet.
1
Research and Higher Education Monitoring and Analysis Centre, Technopolis Group, Ernst & Young, Interim
Progress Report on the Implementation of Joint Research Programmes and Interim Monitoring Report of Joint
Research Programmes, 2 July 2012.
2
Research and Higher Education Monitoring and Analysis Centre, Technopolis Group, Ernst & Young, Presentation
of Valley Monitoring Group ‘Progress of Implementation and Operational Planning of R&D Infrastructure
Development Projects’, 12 February 2013.
3
Knowledge Economy Forum. ‘Study on Assessment of Operations and Feasibility of Expansion of Science and
Technology Parks (2011–2016)’. Research, 2010; Public Policy and Management Institute, Knowledge Economy
Forum, ‘Evaluation Services of Lithuanian Science and Business Collaboration effectiveness and Coordination of
Funding Opportunities’. Final summary of evaluation report, 20 December 2011.
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Business innovation. According to the Commission report on the progress of the
countries in creating the Innovation Union4, Lithuania ranks 18th by the index of economic
impact of innovation, 25th by the R&D quality index, and 22nd by the knowledge intensity of the
economy in the EU. The fact that recently Lithuania has not made any progress in several
important comparative indicators contributed much to these results. For instance, income from
the sales of products and services which are new to the enterprise and the market (percentage
from the turnover) reduced nearly twofold from 2006 to 2010; the balance of trade in mediumhigh and high-tech products remains negative; the share of knowledge-intensive services in the
export structure remains stable, however, it does not increase. Based on the data of the
Scoreboard, cooperation between research and business, as well as entrepreneurship should be
promoted, progress in the area of intellectual property creation should be fostered, new
innovative enterprises should be supported and the economic impact of R&D should be boosted
by investments in Lithuania in the 2014-2020 programming period. Currently Lithuania is
considerably behind the majority of the EU Member States in these areas.
It is notable that the problem of the share of innovative business in the overall economy
is more characteristic to Lithuania than the issue of the amount of expenditure of business
enterprises on innovation. Innovation expenditure in Lithuanian enterprises investing in R&D
accounted for 2.9% of these enterprises’ working capital in 2008–2010. In this respect, the
country’s business relatively slightly lags behind the enterprises which invest most into R&D at
the global level. According to the data of the 2012 EU Industrial R&D Investment Scoreboard 5,
enterprises investing most into R&D in the world allocate 3.3% of their income for this purpose
on average. The fact that Lithuania ranks merely 21st in the EU by the number of innovative
enterprises6—innovative enterprises accounted for 32.5% of all enterprises in Lithuania in 200820107—is a greater problem.
According to the data of national surveys8, a shortage of funds in the enterprise or group
of enterprises, a lack of funding from other sources and too expensive innovation are the major
reasons for limited technological innovative activities in country’s enterprises. Such survey
results indicate that individual Lithuanian enterprises are seldom capable of introducing
innovation. On the other hand, there is sufficient evidence9 that Lithuanian innovative enterprises
tend to cooperate with each other: 43.3% of innovators of the Lithuanian product and enterprises
introducing marketing innovation cooperate with other enterprises and/or research institutions.
Lithuania is well above the majority of the EU Member States (the EU average is 25.5%) in
terms of this indicator. In order to successfully build on this strength and boost the capacities of
4
European Commission, Research and Innovation Performance in EU Member States and Associated Countries:
Innovation Union progress at country level. Luxembourg: Publications Office of the European Union, 2013.
<http://ec.europa.eu/research/innovation-union/pdf/state-of-theunion/2012/innovation_union_progress_at_country_level_2013.pdf>
5
Joint Research Centre, The 2012 EU Industrial R&D Investment Scoreboard. Luxembourg: Publications Office of
the European Union, 2012.
6
Eurostat data, Innovation statistics. Information online:
<http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Innovation_statistics>
7
Statistics Lithuania, Development of Innovation Activities 2010. Vilnius, 2012.
8
Statistics Lithuania, Development of Innovation Activities 2010. Vilnius, 2012.
9
Eurostat data, Innovation statistics. Information online:
<http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Innovation_statistics>
14
Partnership Agreement
business enterprises to invest in innovation, it is important to actively support business-business
cooperation and cluster formation in the 2014-2020 programming period.
Research and business collaboration, commercialisation of R&D results and
demand for innovation. Lithuanian business enterprises make a poor use of the opportunities
offered by cooperation with research and study institutions. Although nearly 20% of the
enterprises introducing technological innovation indicate that they cooperate with research and
study institutions, only 7% considers them the most important partners. The public, higher
education and non-profit organisation sector receives merely 15% of the business enterprises’
expenditure on R&D, the rest is paid for R&D services provided by other (local and foreign)
enterprises10. Underdeveloped relations limit the dissemination of knowledge and technologies –
research institutes are indicated as the major source of information on innovation only by 3.8%
of the business enterprises involved in innovative activities, and higher education institutions –
by 3.3% of the enterprises respectively.
There are different reasons for the limited interest of businesses for investing into R&D.
One of them – preference to the measures stimulating supply rather than demand for RDI by
using EU structural support of 2007–2013. Therefore the interventions implemented so far have
failed to generate or have not generated yet the incentives for businesses to more actively engage
in the cooperation with research and higher education institutions and to channel more
investments into RDI. Other reasons of limited business investments include: efforts of the
companies to reduce costs incurred during periods of economic crisis; low economic
development level of the country (transitional development stage); insufficient quality of RDI
supply and mismatching of the offered services to the needs of the business; lack of
understanding and capacities of the businesses in terms of implementation and management of
RDI activities11. In 2012, the Government of the Republic of Lithuania adopted the classification
of the stages of research and development12, whereby it defined the main R&D stages from
acquisition of knowledge to development of a product. An economic entity which is not sure
whether the activities it is engaged in are categorised as R&D activities, may contact the Agency
for Science, Innovations and Technology which will make assessment and provide conclusions
to the entity concerned or the tax administrator concerning the compliance of the entity’s
activities with the specific technological preparedness level and treatment of the activities as
R&D. It is expected to encourage business companies to more actively seek the corporate tax
incentive applicable when investing into R&D.
On the other hand, the insufficient research and business cooperation is to a certain
extent determined by the regulatory framework which does not offer sufficient incentives for
research and higher education institutions to undertake orders from the business consequently
stimulating larger spending of business entities on R&D activities. The conducted assessment
has revealed that the research and business cooperation is confined both due to the lack of
competencies, experience and material resources by research and higher education institutions
and due to the hurdles such as undefined legal procedures for transfer of ownership of research
products, regulatory drawbacks in relation to financial resources of the budget institutions, large
10
Statistics Lithuania, Expansion of Innovative Activities 2010, Vilnius, 2012.
BGI Consulting, Assessment of Efficient Participation of Lithuania in European Research Area: Study of
Potential of and the Measures for the Private Sector‘s Investments into R&D in Lithuania. Final report, 25
November 2011.
12
Resolution No 650 of 6 June 2012 of the Government of the Republic of Lithuania approving the recommended
classification of research and development stages, Official Bulletin, No 66-3344.
15
11
Partnership Agreement
red tape in signing and amending agreements with research and higher education institutions,
etc.13.
In the 2014–2020 programming period the changes in the RDI area will be sought on
the basis of the progress achieved and the lessons learnt in 2007-2013 along with better
coordination of the investments into RDI by focusing them in the priority directions for the
development of RDI (smart specialisation) (hereinafter RDI priority directions).
To identify RDI priority directions,14 Lithuania’s research potential was analysed;
strengths of the economy and the knowledge-based growth perspectives overviewed; main longterm challenges for Lithuania and Europe assessed; 614 science, business representatives and
decision makers interviewed; 7 discussions with research and business representatives and
decision makers held; and the possibilities to exploit RDI infrastructure developed as part of the
programmes for science, studies and business centres (valleys) assessed. As a result of the
analysis of research15 and economic16 potential as well as discussions with the stakeholders six
RDI priority directions have been pointed out. These directions are: energy and sustainable
environment; inclusive and creative society; agricultural innovations and food technologies; new
production processes, materials and technologies; health technologies and biotechnologies;
transport, logistics and ICT. Once priority directions were identified, specific priorities were
further defined. The priorities were identified on the basis of an extensive analysis of research
and business potential, RDI capacities in the identified RDI priority directions, future challenges,
analysis of national and global trends associated with these directions, analysis of critical
technologies and processes within these directions. To achieve consensus of the stakeholders,
discussions of the experts representing different interests (academic society, associated business
structures, public institutions) were arranged. That lead to 20 RDI priorities. In the meanwhile,
the Programme for the Development of Priority Research, Development (Social, Cultural) and
Innovation Directions (Smart Specialisation) and Implementation of the Priorities Thereof was
prepared defining the procedure for approval, implementation, monitoring, assessment and
coordination of RDI priorities, identification and implementation of new RDI priorities as well
as other procedures needed for a smooth and efficient implementation of RDI priorities by
coordinating activities of stakeholders’ institutions. Each RDI priority will be implemented on
the basis of an action plan which will define specific study and RDI policy measures, indicators
for evaluation of the milestones and final targets of RDI priorities. The implementation of the
RDI priorities will be subject to ongoing institutional monitoring as required in the Programme
for implementation of RDI priorities enabling intervention and adjustments to the process as it
progresses. This means that the list of RDI priorities is not static and may change (i.e. the current
priorities may be abandoned/ new priorities introduced) depending on the circumstances and
whether or not the implementation of the priorities brings tangible benefits and results. The
approval of the above mentioned action plans will finalise the documentation phase of the smart
specialisation process and mark the start of implementation of the planned activities.
Public Policy and Management Institute, Knowledge Economy Forum ‘Evaluation Services of Lithuanian Science
and Business Collaboration Effectiveness and Coordination of Funding Opportunities“. Final summary of evaluation
report, 20 December 2011.
14
For further information please see http://www.mosta.lt/lt/sumani-specializacija/tyrimai-ir-ataskaitos
13
Research and Higher Education Monitoring and Analysis Centre, ‘Research Potential in Lithuania’, Background discussion
paper to support development of Smart Specialisation Strategy in Lithuania. Vilnius, 2013,
<http://mosta.lt/images/documents/ss/Research_potential.pdf>.
16 Research and Higher Education Monitoring and Analysis Centre, ‘Current Strengths and Future Growth Potential in
Lithuania‘s Economy’, Background discussion paper to support development of Smart Specialisation Strategy in Lithuania.
Vilnius, 2013, <http://mosta.lt/images/documents/ss/Current_strengths_and_future_growth_potential_in_Lithuania.pdf>.
15
16
Partnership Agreement
When implementing the measures funded under the European Agricultural Fund for
Rural Development (EAFRD) in the 2007-2013 programming period intended for the
dissemination of scientific knowledge and innovative practice, the aim was to encourage people
working in agriculture and forestry to introduce scientific innovation and advanced technologies
in their farms more rapidly.
‘Nemunas’ and ‘Santaka’, research, higher education and business centres (valleys)
established in Lithuania, mobilise the potential of agricultural, forestry and food research as well
as knowledge-intensive business that have general and networked R&D infrastructure and
targeted contribution to the development of agricultural, forestry and food sectors, the creation of
knowledge economy and the competitiveness of the Lithuanian economy.
The valleys bring together agricultural and food higher education institutions
(Aleksandras Stulginskis University, Veterinary Academy of the Lithuanian University of Health
Sciences, Competence Centre of Food Science and Technology and institutes of the Kaunas
Unversity of Technology (Lithuanian Research Centre for Agriculture and Forestry, its three
institutes of Agriculture, Horticulture and Forestry, 10 branches, experimental stations and
research centres), Lithuanian Institute of Agrarian Economics, Lithuanian Agricultural Advisory
Service) and business structures. These institutions employ over 400 scientists and around 350
highly qualified consultants. Their capacities to expand the application of scientific results as
well as science-business relations should be used more effectively.
The valleys have successfully implemented or are finalising R&D infrastructure
projects; the infrastructure needed for the development of agriculture, forestry and food sectors,
transfer of technologies and promotion of entrepreneurship has been created; research potential
has been consolidated; research and business collaboration is proceeding. For further success of
the valleys it is important to ensure the development of human resources and innovations, i. e. to
identify the priorities and funding measures that would enable the valley associations and
institutions engaged in innovative developments (e. g. communication and technologies centres,
parks) to efficiently perform the functions critically important to the sectors (management of
innovations, publicity of the valleys, promotion of research and business collaboration, transfer
of technologies). The potential of the valleys to expand the adaptability of research outcomes,
research and business relations should be exploited more efficiently.The majority of farmers are
still under-informed and unmotivated to adopt innovations, they do not take any risk of
introducing innovative solutions that have not been tested under production conditions. On the
other hand, research does not always receive feedback from farmers on production problems and
the demand for innovation. Consultations with farmers, therefore, play a very significant role in
the course of the creation and dissemination of innovation for agricultural processes. Eliminating
deficiencies obviously requires strengthening cooperation among research institutions,
consultancies and agricultural producers in dealing with relevant issues of economic activities.
For the purpose of further development of RDI and ensuring of its efficiency it is
planned, where appropriate, to take the opportunities offered by EUSBSR and to cooperate with
other countries of the Baltic Sea Region, to continue successful implementation of the pilot
projects envisioned in the EUSBSR action plan, such as BSR stars and ScanBalt Health Region
(intersectoral and international projects dealing with innovations in health and sciences of the
living nature, in which one of the leading countries is Lithuania), considering the possibility to
support these projects from the ESI funds, in particular having in mind that these projects are
consistent with the directions set in the smart specialisation strategy.
The SWOT analysis of the Lithuanian RDI system shows that a special focus should be further
placed on leveraging private investments in research, enabling the existing capacities to
commercialise research results and increasing the number of innovative enterprises.
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Partnership Agreement
1.1.2.1.2. Ensuring quality in education, openness and creativity
Lithuania is viewed as a rather closed society with no appropriate conditions for the
development and expression of creativity. The index of globalisation, which measures the
country’s economic, political and social globalisation, placed Lithuania merely 26th in the EU in
2010. Lithuania also lacks appropriate conditions for the development of creativity. It ranked
17th in the EU in terms of creativity in 2009, while its creativity climate was seen as even worse
– Lithuania ranked 24th in the EU. Therefore, it is necessary to exploit the potential of creativity
to promote growth and job creation.
Lithuania considerably lags behind the EU average in terms of a share of children aged
between 1 and 6 attending pre-school education institutions. In 2011, the participation rate of
children aged between 4 and 6 was 77.6% (the EU average was 92.4%). The largest gap in the
attendance of pre-school education institutions is observed in urban and rural areas17 (this
indicator is three times lower than the number of pre-school children in the area). The majority
of pre-school education institutions are in poor condition – around 20% of the currently
operating institutions were renovated during the independence period. Although, the number of
pre-school education institutions has reduced since 2000, the network of pre-school education
institutions was optimised, i.e. the number of pupils and their groups increased, while the number
of institutions reduced.
In the coming years, the demand for pre-school education should grow due to the
increased birth rate over the recent years. Moreover, the current increase in the number of
children attending kindergarten is preconditioned by a higher birth rate between 2008 and 2010.
The demand for pre-school education will also grow due to reduced maternity benefits (reduction
down to 40% of the pay during the second year of the maternity leave).
The introduction of pre-school education vouchers and the amendment of other legal
acts in 2011 created more favourable conditions for non-state funded kindergartens/groups. All
founders (including private) are funded four child education hours per day (20 hour per week) by
this voucher. Education of children with special educational needs is subject to a voucher which
is larger by 35%. Besides, requirements concerning buildings and the use of premises are
liberalised when establishing new pre-school education institutions: it is not necessary to change
the purpose of these premises, and hygiene requirements have been simplified.
In 2007–2013 programming period interventions into pre-school and pre-primary
education included: development of universal multifunctional centres; grants to municipalities
where existing/newly established entities/groups were admitting new trainees; promotion of
more diverse models for organisational and education services; strengthening of cooperation
between integrated support groups; provision of methodological and advisory assistance; training
of distance teaching mentors; drafting of distance learning programmes, courses in line with the
needs of rural population; preparation of methodologies for qualification enhancement;
management training for the heads of pre-school and pre-primary education institutions and
heads of municipal administrations; qualification enhancement courses for educators and
teachers; issuing of methodological publications and other related activities. 138 schools
17
In Lithuania, rural areas refer to villages, towns and cities with population under 6,000 (except for municipal
centres).
18
Partnership Agreement
delivering pre-school and pre-primary education programmes were modernised. In addition to
that more than 70 universal multifunctional centres delivering pre-school and pre-primary
education were established.
One of the key challenges in general education is related to the misbalance in the
network of educational institutions caused by demographic reasons. The price for education of
one pupil differs up to five times in different schools due to the irrational use of educational
premises. It is forecasted that the number of general school pupils will reduce by another 8%
(30,000 children) by 2015. Thus far, more investments were made in gymnasiums, whereas
lower-secondary schools did not receive any significant investments. Child socialisation centres
have extremely poor education conditions – there are no conditions for individualised teaching
and comprehensive assistance to children with special needs due to worn-out infrastructure.
Links of the inefficient school network with low education quality in regions is also illustrated
by the results of PISA, a survey of fifteen-year-olds. The survey revealed that the results of
Lithuanian pupils were distributed quite evenly, irrespective of the social and economic situation
in their family. However, it observed considerable differences between achievements in different
schools, suggesting that high-quality education is not equally available to all children in all areas.
Although investments have intensified over the last 15 years, the share of general
education schools modernised for LTL 1 million constitutes only one fifth of all education
institutions. In 2007–2013 period one art school and ten non-governmental general education
schools were modernised; four special methodological centres established. According to the data
collected in IEA TIMSS study in 2011, relatively lower learning results of Lithuanian pupils
were determined by the fact that only 13% of the eighth graders attended schools with natural
science laboratories, and primary schools did not have them at all (the international average was
80% in the eighth grade and 36% in the fourth grade).
Insufficient quality of education is reflected by international studies on learning results
(PISA, TIMSS and PIRLS). They have revealed that learning results of Lithuanian pupils are
lower than in the neighbouring countries and are getting worse; the number of pupils with the
highest results is particularly low; learning results of pupils in rural areas are much lower than
those of pupils in urban areas, and learning results among boys are much lower than among girls.
According to indicators of the international survey of fifteen-year-olds, PISA, reading,
mathematics and natural sciences skills of Lithuanian pupils were statistically lower than the
respective average values in 2012. Lithuania ranks 37th (of 65 countries that participated in the
study) in terms of mathematical literacy, 39th in terms of reading skills, and 30th in terms of
literacy in natural sciences. Although the results of Lithuanian pupils in mathematics, natural
sciences and reading are higher than the average of the participating countries, the deteriorating
trend was observed in 2011, according to the data TIMSS and PIRLS. The results of this study
also show the number of pupils who demonstrate best results is lower than the study average. To
assess learning results, both national and international studies are conducted, however, the
collected data are used for general accounting purposes only; they are not used for identifying
pupils’ needs, adapting the curriculum or assessing the performance of schools. Lithuanian
schools have a limited system of learning results and no system for the assessment of schools’
progress. A survey of 11th–12th graders18 revealed that the majority (59%) think that teachers lack
knowledge in pedagogy and/or psychology, management and technology required for the
application of new teaching methods and work with new technologies. The older age of teachers
and the unattractiveness of a teacher’s profession as such cause long-term systemic problems in
18
Survey of Lithuanian senior form pupils’ opinion about general education and studies. Rait, March 2012.
19
Partnership Agreement
general education. An unfavourable ratio between young teachers’ workload and pay does not
encourage secondary school graduates to choose studies of educology.
In 2007–2013, measures focusing on skills related to languages, digital literacy,
citizenship, entrepreneurship, cultural awareness were implemented, however the demand for the
measures addressing the key competencies was three times as large as the budget available for
that measure. Another element inherent to the quality of the general education is the quality of
teachers’ work, therefore in the last programming period different measures were implemented
to improve the qualification of the teachers. Massive qualification enhancement courses did not
prove success in the previous programming period therefore in the coming period they are to be
replaced with targeted training of the teachers coordinated from the strategic point of view by the
Ministry of Education and Science and based on self-assessments of the schools, studies of
pupils’ performance, pre-determined education quality improvement plans, and the identified
general needs such as using of IT, etc. In 2007–2013, total funding granted for the improvement
of access to education for the children with special needs amounted to almost mLTL 16,
although the demand for the measure was by mLTL 7.7 larger; the education of talented children
lacked about mLTL 2 during this period. Although the interventions dealing with quality
improvement of education for talented people were in place during the period, these were only
the first steps in this area of general education. Taking the above into consideration, investments
are going to be channelled into these activities in the new programming period as well.
Although the share of early leavers of the education system aged 18-24 with only
basic education has been consistently reducing at the national level since 2009, in 2012 it still
stood at 6.5%. Besides, large differences between urban and rural areas remained (in 2012, 3.7%
and 11.7% respectively). In Lithuania, the number of dropouts and early leavers of the general
education system in rural areas is almost three times as large as in urban areas; the number of
early school leavers among boys is twice as large as between girls. Higher poverty level and
social inequality in Lithuania (to compare with EU average) makes this problem even more
relevant, in particular in rural areas. In the previous programming period, there was one project
implemented in relation to reduction of dropouts dealing with reinstatement of dropouts back
into schools; mLTL 4 were granted for the project. The investments of the 2014–2020
programming period will also contribute to tackling the above mentioned problems.
Challenges for pre-school and general education in the new programming period include the
creation of a system which is capable of responding to demographic changes in a timely manner
and where flexibility and adaptation are matched with ensuring equal quality in education
services for all Lithuanian children.
Non-formal education of children helps develop social and basic competencies and
skills, as well as satisfies a child’s need for self-expression. Non-formal education is more
flexible than formal, therefore, it is capable of satisfying better the needs of pupils with special
needs: children at risk of social exclusion, children of foreigners, children with special abilities –
wider provision of these possibilities to children is embedded in the State Education Strategy for
2013-2022.
Although changes in the legal base are favourable for the development of non-formal
education of children, its development is still limited by insufficiently effective organisation,
poor access and insufficient funding.19 Regional and gender differences in non-formal education
20
Partnership Agreement
are evidenced by statistical data. 289 non-formal child education institutions and schools
supplementing formal education functioned in 2012, although this statistics does not reflect the
total number of non-formal education providers (as they are not registered with state registers).
While the total number of pupils has been reducing in the recent years, the number of pupils
participating in non-formal education has been growing, except for rural areas where the
deteriorating trend was observed from 2010 to 2012. Moreover, differences between urban and
rural areas are highlighted by the share of children participating in non-formal education: in
urban areas this share was more than twice as high.
Sports and music remain the most popular fields of non-formal education with art and
choreography lagging slightly behind. Possibilities to choose activities remain limited, access to
non-formal education in technology and natural sciences is lacking in particular.
The key investment of the 2007–2013 EU structural support was targeted towards the
establishment of non-formal education services support system in municipalities. Investments
were channelled into the implementation of non-formal education programmes in summer camps
for children; the implementation of non-formal education programmes for children in
municipalities; the training of non-formal education teachers; the implementation of non-formal
education programmes for children on civil and ethnic issues in municipalities; the training of
administrators of the life long learning system. In the new programming period, these activities
are to be continued. It should be noted that in the 2007–2013 programming period no
investments were made in non-formal education infrastructure; this area is going to be targeted
in the 2014–2020 programming period.
Challenges for non-formal education include expanding the range of fields of education offered,
creating conditions for early career counselling and development of creativity, improving the
integrity of formal and non-formal education and ensuring their complementarity.
In 2012, 47.9% of the Lithuanian population aged between 30 and 34 had higher or
equivalent education – this indicator exceeded the EU average. Funding for the modernisation
of the study system increased upon Lithuania’s accession to the EU. In 2007–2013 higher
education institutions updated study programmes, optimised the internal structure of higher
education institutions, introduced quality management systems, teachers actively participated in
their professional development, international cooperation in the area of studies expanded,
academic mobility of teachers and students improved. However, some problems related to higher
education remain relevant. Quality in higher education that does not comply with the needs of
the labour market and the society20, limited practical skills, more process than results-oriented
studies and poorly developed career services cause employment problems for graduates and
lower attractiveness of studies in Lithuania (the employment rate of people with higher education
aged between 25 and 29 accounted for 88.1% in 2012; the employment rate of people aged
between 20 and 34 with higher education (ISCED 5-6) acquired not earlier than three years ago
was 81.9% in 2012; the unemployment rate of young people (20-34) with higher education was
11% in 2012 (the EU average was 13%).
20
According to the data from the study of the Research and Higher Education Monitoring and Analysis Centre
conducted in 2012, for the last three years social partners give a lower evaluation to competences of graduates of
higher education institutions who graduated than their identified needs.
21
Partnership Agreement
Access to higher education is limited by the lack of flexible modes of study, modules or
studies that are adapted to adults and relevant for those wishing to balance their job and studies
(in 2008, 4.5% of the persons aged between 25 and 64 trained and studied in a distance/
continuing studies (the EU average was 9.3%21). The attraction of potential students is limited by
poor social and financial availability of studies: financial incentives for underrepresented social
groups are lacking, the operating system for funding higher education does not comply with
actual possibilities to pay the tuition fee (a high tuition fee, unclear further employment
opportunities, and a low pay after starting to work).
The quality of studies is not properly managed – objective data required for making
decisions and identifying areas to be improved, development trends and prospects are limited,
and the external review of higher education institutions which could help identify their quality
has a low coverage. In 2007, the largest number of the people aged between 25 and 34 with
higher education working in a different area than their education in Lithuania was among the
graduates of agriculture and veterinary (59.5%), service (58.9%) and engineering, production
and construction (48.7%).
In the past programming periods investments from the EU Structural and Cohesion
Funds helped to improve the studying conditions only in some higher education schools. In order
to further improve the quality and to increase the attractiveness of the higher education the
students’ learning, living and leisure environment has to be modernized, and the capacities of the
education and training institutions pursuing the highest quality standards reinforced; the major
investments have to be channelled into the mobilisation of the human capital and other resources
for the development of the required education and training infrastructure and for its integration
into the infrastructure of research centres.
Problems are faced in processes of researcher education from a pupil to the highest level
researcher, as well as in relations between R&D and innovation with business. Despite a high
education rate, as compared to the EU average, the number of new doctors of science is nearly
twice as low as the EU average. Moreover, compared to the situation in other EU Member
States, Lithuania distinguishes by the distribution of R&D workers in the private and public
sectors – 12.7% of R&D workers worked in the business sector in 2012.
Despite the reinforced material base and continuous efforts to improve quality in higher
education, the key challenges in the future programming period are still related to insufficient
employment opportunities for graduates which correspond to their education, weak career
incentives for scientists’/researchers’ career in the area of scientific potential reproduction.
Although the attractiveness of vocational training has been growing over the recent
years, it is not sufficient yet. The share of pupils studying under vocational training programmes
intended for acquiring secondary education together with professional qualifications account for
less than 30% of the total number of pupils in ISCED 3 programmes, whereas the respective
average in the EU Member States is around 50%. One of the major reasons behind low
attractiveness of vocational training is insufficient quality of training in the majority of
vocational training institutions. The supply of vocational and adult training lacks flexibility,
attractiveness and compliance with the needs of the labour market and population. According to
the data of the Lithuanian Confederation of Industrialists, as many as 44% of the country’s
enterprises did not hire new employees in 2012 only because they did not find well-trained
specialists with a suitable qualification.
21
Eurostat, 2013.
22
Partnership Agreement
Investments into sectoral practical training centres from the EU Structural and Cohesion
Funds in the 2004-2006 and 2007-2013 programming periods allowed for the modernisation of
training spaces and equipment in some vocational and adult training institutions. The vocational
and technological training facilities were upgraded by 21 vocational training establishments; 19
establishments providing training services for adults were modernised. By the end of the 2007–
2013 programming period vocational training institutions will have 42 sectoral practical training
centres established. However, these funds were insufficient for all of them, leaving behind
dormitories, wellness infrastructure and methodological centres of vocational training
institutions with centres. Not all vocational training institutions are capable of providing highquality basic vocational training either. This leads to limited possibilities for high-quality
learning close to the place of residence.
A high structural and youth unemployment rate shows that competences acquired in the
educational system by a large share of people do not comply with the needs on the labour
market. People in vocational training lack possibilities for quality development of practical skills
in particular. Therefore, in the 2014-2020 programming period, it is necessary to provide more
possibilities for them to undergo the practical training part in sectoral practical training centres of
high technological level, and complete the preparation for the labour market by internship
placements with employers or apprenticeship programmes.
Professional standards for five economic sectors, 40 new modular vocational training
programmes in line with the standards and modern learning material will be prepared in
cooperation with social partners by the end of the 2007-2013 programming period. These
activities must be continued in other economic sectors. The formation of qualifications and the
implementation of modular programmes will make it possible to offer opportunities for persons
to evaluate their competences and acquire a qualification or a part of it, facilitate the transition
between educational programmes.
Subject-specific, technological, creative and other competences of the teaching staff in a
large number of vocational and adult training institutions are insufficient to ensure the quality of
training services. At the end of the 2007-2013 programming period, the aim is to train only one
third of vocational teachers in enterprises in cooperation with social partners. Therefore,
shrinking the gap between vocational teachers’ competence and modern technologies that are
actually applied in enterprises remains relevant.
By the end of the 2007-2013 programming period, internal systems for ensuring quality
of activities and training services will be introduced in all vocational training institutions.
Ensuring the practical operation of these systems and the improvement of institutions’ activities
is a long-term process though. Progress has been made in the area of external review of
vocational training programmes – 90 programmes, under which around 30% of pupils are
studying, will be reviewed by the end of this period and it is intended to continue this process.
In 2007–2013, continued vocational training activities supported by the EAFRD were
attended by about 30,000 people engaged in agricultural and forestry activities. Nevertheless
vocational background for engaging in farming is not sufficient because only one tenth of the
farmers possess basic vocational background. Farmers of the agricultural and forestry sectors as
well as owners of forests still lack knowledge and expertise needed to tackle specific farming
issues related to compliance with the requirements of farm management, application of climate
and environment-friendly farming practice, introduction of environmental protection standards.
SMEs established or operating in rural areas lack experience in developing their business,
addressing environmental farming issues.
The sustainment and improvement of the competitiveness of the Lithuanian farmers and
agricultural companies call for consistent accessibility of continued vocational training for those
involved in agriculture and forestry. Change of generations in the agricultural sector will mean
23
Partnership Agreement
that the farming will be taken over by young farmers or elder farmers that will engage in
agricultural activities as a new start and therefore will lack theoretical and practical farming
skills. Continued training will provide new competencies for the successors of the farms:
competencies in farming technologies, application of innovations, smart (precise) farming, etc.
Geographical access to training has also to be secured, i. e. close to the home places of the
farmers, in rural regions. The surveys conducted by the Centre for LEADER Programme and
Agricultural Training Methodology indicate inaccessibility of training sites as one of the reasons
for non-participation in the continued training.
The progress made during the 2007-2013 programming period serves as an important basis for
strengthening the role of vocational education in training of qualified specialists. The range of
results of the launched pilot projects have to be assessed in detail and multiplied to boost the
attractiveness of this chain of the education system.
Adult education remains underdeveloped in the general context of education. In 2012,
the share of the Lithuanian population aged between 25 and 64 who participated in formal or
non-formal education was 1.6 times lower than the EU average (5.7% and 9%, respectively) and
2.6 times lower than the Europe 2020 objective (15%). The major problem is low motivation to
learn among adults and a belief that it is too late to learn, caused mainly by the lack of
information about new learning objectives, possibilities, their benefits to professional activities
and personal life.
In the 2007-2013 programming period, in the area of lifelong learning the EU Structural
and Cohesion Funds were mainly allocated to the training of high-skilled staff of public services
and the unemployed, as well as individuals informed about their dismissal. Considerable support
was also provided to enterprises to stimulate their investments in staff training, but enterprises
tended to invest in further training of high-skilled staff, too. Insufficient attention has been paid
so far to learning of non-skilled and low-skilled employed persons who account for over a half of
the country’s labour force. What is more, a number of these persons perform the work for which
they are unqualified. This makes them more vulnerable in case the job is lost. This group
participates in lifelong learning rather seldom and cannot acquire learning services because of
low income.
During the 2014-2020 programming period, the challenge will be to create continuous
incentives for the country’s population, in particular non-skilled and low-skilled workers, to
participate in the lifelong learning system by ensuring a variety of studies (content and mode)
and their compliance with the needs of the labour market and an individual person, as well as
developing possibilities for the recognition of acquired competences.
1.1.2.1.3. Ensuring efficiency of public administration
Efficient public administration is an important factor in the country’s progress. In the
2007–2013 programming period, resources of the European Social Fund (ESF) were made
available for reinforcing administrative capacities and effectiveness of public administration
for the first time. The assessment performed in 2011 established that this support contributed to
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Partnership Agreement
positive changes in the civil service, the governance of public authorities and the quality of
services22. Despite the above ESF investments, Lithuania still lags behind other EU Member
States in the assessment of certain public governance areas.
According to the data of the World Bank for 2011, Lithuania ranks only 21 st in the EU
by government effectiveness index23. The indicators of public confidence in public authorities are
also not that high. Based on the data from the survey carried out by the Eurobarometer in 2013,
the confidence of the Lithuanian population in the Government accounts for 27% (the EU
average is 25%), the Parliament – 13% (the EU average was 26%). The results of a survey of the
Lithuanian population conducted in 201224 show that apart from the Government and the
Parliament, the population has no confidence in courts, law enforcement institutions,
municipalities and establishments subordinate to them.
Public administrations are not sufficiently results-oriented; they lack targeted and
systematic monitoring, evaluation and improvement. Their administration-related decisions are
not sufficiently built on information on the results already achieved. The legislative process is
not always based on the analysis of the current situation (collected evidence). Besides, there is a
shortage of well-planned and implemented national reforms in a certain area of public
administration, which would contribute to a more rational distribution and efficient use of
resources allocated to public administration, etc. Integral planning of public resources which
include all possible financial sources is lacking. Decisions concerning new investments are not
always based on the assessment of costs incurred during the entire period of economic benefits
generated by the developed assets. Possibilities for improvement of public infrastructure related
to the development of the public and private partnership, the application of renewable financial
instruments, etc., are not sufficiently used.
The decision-making process lacks openness and transparency as well as effective
consultations with the public. Population surveys show that around half (44%) of the country’s
population thinks that too much information is not published and provided by public authorities 25.
The public lacks information about activities and performance of public authorities, as well as
knowledge about and opportunities for participation in public administration processes. Even
though all draft decisions have been published on a special website since 2009, it is not efficient
enough for public consultations. Corruption and non-transparent decisions are observed, in
particular in healthcare, law enforcement and other areas of public administration. According to
the index of corruption perception for 2012, Lithuania scores 54 points of 100 and is the 21st
among the EU Member States26.
According to the data of the World Bank, in 2012 Lithuania ranked 21st in the EU in
terms of the rule of law. The data of the EU Justice Scoreboard 201327 show that the efficiency of
the country’s judicial system exceeds average results of the assessment of judicial systems in the
EU Member States by certain parameters (the duration of case investigation in first instance
courts, the provision of e-services to the parties of the proceedings).
Assessment of the implementation of priority 4 of the Operational Programme ‘Human Resources Development’
(final report). 2011. Public Policy and Management Institute
23
http://info.worldbank.org/governance/wgi/index.asp.
24
Assessment of confidence in public and municipal institutions and establishments, and service quality, Ministry of
the Interior, 2012. <http://vakokybe.vrm.lt/index.php?id=307>.
25
Data from a population survey conducted by Transparency International, Lithuanian Chapter from December
2010 to February 2011.
26
Transparency International, Corruption Perception Index 2012 < http://www.transparency.org/cpi2012/results>.
27
EU Justice Scoreboard. EC, 2013 <http://europa.eu/rapid/press-release_MEMO-13-288en.htm>.
25
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Partnership Agreement
One of the reasons determining insufficient performance efficiency of the police and
other law enforcement institutions is limited abilities and modern tools required for ensuring
effective inter-institutional/international cooperation, fast exchange of information among law
enforcement and other institutions in crime prevention and fight against it.
Lithuania is in the middle by regulatory quality – it ranks 17th in the EU28. Excessive,
non-proportional or unjustified regulation and its insufficient quality place a rather heavy
administrative and/or other regulatory burden on business and residents. In the country,
municipalities in particular, where the administrative burden has not been assessed and
systematically reduced so far, initiatives aimed at the reduction of the administrative burden are
implemented slowly. The objective set by the Government of the Republic of Lithuania in 2009
of cutting the national administrative burden for business in seven selected priority areas by 30%
by the end of 2011 has not been achieved so far. By the end of 2012, the administrative burden
was limited by around 2% or by LTL 3 million annually (draft legal acts have been prepared and
after their adoption the reduction of the administrative burden would account for 23.2%
compared to the objective of 30%). The Law of the Republic of Lithuania on Reduction of
Administrative Burden, which came into effect in 2013, is expected to serve as a significant
positive impetus in planning and implementing administrative burden assessment and reduction
initiatives.
While reforming bodies responsible for the supervision of activities by economic
entities in Lithuania since 2009, improvements are observed in the performance assessment of
bodies that inspected activities of economic entities (the results of a survey29 conducted in 2013
show that 48% of the enterprise representatives surveyed agree that supervisory bodies have
been providing more assistance to business recently in order to implement legal requirements;
this opinion was expressed by 39% of the enterprise representatives interviewed in the survey
conducted in 2012). Better achievement of indicators is prevented by insufficient coordination
and cooperation of actions among bodies supervising activities of economic entities, as well as
the fact that not all supervisory bodies have introduced and apply advanced measures for the
supervision of activities by economic entities (risk assessment of economic entities, unanimous
consultation of economic entities, application of checklists during inspections, use of information
technologies to ensure the quality and efficiency of actions, etc.), not all supervisory bodies
focus their financial and human resources on the prevention of the highest risk, etc. The Council
Recommendation 5 for the year 2014 calls to complete the reform of state-owned enterprises and
to monitor compliance with the requirements of the reform. The implementation of the public
governance reform involves collection and processing of integrated, timely, reliant and
comprehensive information (with regard to state-controlled enterprises, it is related to financial
management, management of human resources and competencies, management of projects,
processes and risk).
The ability of public administration authorities to provide high quality services is
directly dependent on the size of the public spending. As the public spending in Lithuania is
relatively low and restricted (37.4% of GDP (the EU average is 46.9%), it is necessary to
diversify it by taking into account the major needs of the society, identifying priority services,
establishing their optimum scope and a respective ‘value for money’. So far, no assessment has
The World’s Business School INSEAD, 2009-2010.
Report on the survey of economic entities on the assessment of the performance of supervisory institutions,
commissioned by the Ministry of Economy of the Republic of Lithuania, Socialinės informacijos centras UAB,
2013
<http://www.ukmin.lt/uploads/documents/Ûkio%20subjektø%20apklausa.pdf >.
26
28
29
Partnership Agreement
been made on the scope and purposefulness of all public services; no minimum service quality
standards have been developed; a lack of focus on users of services is observed – examination of
service users’ satisfaction with the services provided is not active enough. The data of a survey
performed in 2012 shows that only approximately 34% of the authorities conduct customer
surveys on the quality of services provided30. The population, the private sector, local
communities and non-governmental organisations (NGOs) are barely involved in the provision
and/or improvement of services; services are developed without sufficient consideration as to
where and how the society would like to receive them.
The civil service is lacking professionalism to achieve better performance in public
administration. The Lithuanian civil service is still too much focused on operational processes,
lacks a single system of requirements for civil servants’ knowledge, skills and abilities,
flexibility in career planning, pay, motivation, performance evaluation, training and other areas.
Although a report OECD/SIGMA drafted in 2009 assessed the compliance of the Lithuanian
civil service with the European public administration principles the best among the new EU
Member States, the lowest compliance was established in the area of the senior civil service, as
well as insufficient compliance in the areas of performance evaluation, pay and motivation. The
current remuneration system does not foster efficiency requirements imposed on the civil service
as it distorts remuneration based on the hierarchy of positions, is unable to compete on the labour
market and is inadequate for the functions performed and the responsibility. The observed lack
of managers’ leadership affects insufficient interaction between institutions and stakeholders.
These deficiencies of the system partially cause a relatively low competitiveness of the civil
service with the private sector and make the civil service unattractive to high-skilled specialists.
The key challenges in public administration in the 2014-2020 programming period will be the
formation of incentives intended for boosting performance efficiency among institutions by
introducing focussed operation planning and monitoring systems; the introduction of a evidencebased and result-focussed management model; the creation of a motivated and professional civil
service based on the principles of transparency and partnership.
1.1.2.1.4. Development of the digital society
According to the European Commission’s data for 2012, basic fixed broadband
connection covered 97% of the Lithuanian households (the EU average was 95%), in rural areas
– 91% of the households, while advanced 3G mobile broadband internet connection – 95% of the
Lithuanian households (the EU average was 96%)31. However, a detailed analysis32 of the
broadband connection infrastructure conducted at the end of 2013 has revealed that although
high-speed (30Mbps and faster) internet connection currently covers 73% of the Lithuanian
households, most of this infrastructure is concentrated and will mainly be developed in
Lithuania’s five largest cities and district centres in the nearest future, while the remaining 27%,
30
Monitoring the application of quality management methods in public institutions/establishments in Lithuania.
Ministry of the Interior, 2012
31
Data from the report on the implementation of the Digital Agenda for Europe Scoreboard published by the
European Commission in June 2013.
32
The analysis has been commissioned by the Information Society Development Committee under the Ministry of
Transport and Communications when designing the Model for the Development of Broadband Connection
Infrastructure and Promotion of the Use of Services.
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Partnership Agreement
i.e. around 300,000 households, remain uncovered and will not be included in the territory of the
high-speed broadband connection coverage, if the current trend continues.
Despite the state’s great contribution into the development of the basic broadband
connection infrastructure in the rural areas, some territories still remain commercially
unattractive for private operators due to a relatively low number of potential internet users and
their low purchasing power, as well as large investments required (taking into account individual
operators) into the ‘last mile’ infrastructure. The remaining territories uncovered by high-speed
broadband connection are the most difficult to reach and it is necessary to look for the best
solutions by matching the actions aimed at the development of both fixed and wireless
broadband connection infrastructure in order to cover them. Therefore, a target set for the
Member States in the Digital Agenda for Europe that all households are to be covered by highspeed broadband (30Mbps and faster) internet connection by 2020 remains a significant
challenge for Lithuania.
Although the RAIN-2 project has ensured 98% territorial broadband coverage of rural
areas (as a result of PRIP project funded by EAFRD in accordance with RDP 2007-2013 the
broadband infrastructure will add 1% to the RAIN-2 coverage and the broadband coverage will
reach 99%), there remains a pressing need to reduce the gaps between the urban and the rural
areas in terms of access to a speedy internet connection and a significant challenge to shift the
public and administrative services that are most important for rural population and business into
electronic environment to make them readily accessible via internet.
The feasibility study conducted in 201233 established that by the current needs and
financial capacities there are 800 objects in rural areas (agricultural institutions and
organisations, production and processing companies, rural communities, major farms) that
should be connected to the broadband infrastructure. In 2007-2013 programming period 50 % of
the target was achieved in the rural areas, i.e. about 400 objects were connected and about 400
km of fibre-based network cable lines constructed.
Lithuania considerably lags behind the EU average in terms of the use of broadband
connection, among households in particular. Only 61% of the households used the basic
broadband internet connection in Lithuania in 2012, whereas the EU average was 73%.
Fortunately, this indicator increased by approximately 4 percentage points in a year. Besides,
significant differences remain between the possibilities for urban and rural residents to use highspeed internet connection. According to the data available at the start of 2013, 72% of the urban
households used the broadband connection, 49% of the rural households. The Digital Agenda for
Europe sets a target that 50% of the EU households are to use ultra-fast broadband internet
(100Mbps and faster) by 2020 remains an important goal for Lithuania as only 6% of the
Lithuanian households used 100Mbps and faster internet connection in 2012. As it is discussed
below, although technical possibilities are available, a very large share of households still use the
broadband connection very seldom or do not use it at all. Given it, one of the key development
challenges is to increase the use of the broadband connection, in particular high-speed
connection, in households.
Lithuania lags behind the EU average by the internet use among the population.
According to the Eurostat data for 2013, only 65% of the Lithuanian households had the internet
connection (the EU average was 79%) and only 53% of the population stated that they used the
internet every day or nearly every day (the EU average was 62%); besides as many as 29% of the
Lithuanian population stated that they had never used the internet (the EU average was 21%).
Feasibility study ‘Development of Broadband Infrastructure in Rural Areas’. Public institution ‘Broadband
Internet’, 2012.
28
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Partnership Agreement
The survey data show that over half of the population state the absence of the need for
the internet as the main reason for not using it, more than a third indicate expensive equipment
and expensive connection. The latter problem is caused by a partially unsolved ‘last mile’
problem in some rural areas of the country. The problem related to the absence of the need could
be solved by raising awareness on possibilities offered by information and communications
technologies (ICT) (among the population who use them seldom or have never used them in
particular) and the breakthrough in the area of e-services to residents, which remain an untapped
potential in Lithuania for boosting the population’s interest in possibilities offered by ICT.
An important aspect in the use of possibilities offered by the information society is
cyber security and privacy online. Compared to other EU Member States, Lithuanians report
that they encounter fewer online threats than an average EU citizen. For instance, in 2010,
merely 1% of the Lithuanians reported that they were subject to privacy violations related to the
data sent online (Lithuania is among the first eight EU Member States by this indicator).
According to statistical data, the number of reports related to online security issues has been
increasing rapidly over the recent years. In 2006, the Lithuanian National Computer Emergency
Response Team CERT-LT received 93 reports about incidents online, whereas in 2012 it
investigated already 21,416 reports, i.e. the number of reports investigated a year increased 230
times. From 2006 to 2012, the types of online incidents changed too. In 2006, reports about
unwanted emails (56% of the reports) prevailed, while in 2012 malicious software (42% of the
investigated incidents) 34and incidents related to taking over of information systems (54.9% of all
the investigated reports) were the major source of concern for online actors, i.e. online service
providers and internet users.
Lithuanians are not sufficiently aware of and do not take into consideration security
threats online. According to the Eurobarometer data for 2013, merely 23% of the Lithuanian
internet users stated that they fear someone may illegally use their personal data while they are
making purchases or performing banking operations online (the EU average was 37%), and 29%
stated that they are concerned about the security of online payments (the EU average was 35%),
whereas 31% reported having no fears with regard to monetary operations performed online (the
EU average was 23%); besides, only 42% of the Lithuanian internet users state that they use an
antivirus software (the EU average was 46%), 26% say that they do not open emails received
from unknown senders (the EU average was 40%), 23% claim that they avoid submitting their
personal data on online websites (the EU average was 34%). The above data show that a
considerable share of the Lithuanian internet users do not always recognise security threats and
know how to deal with these problems. Therefore, an important goal is to help the Lithuanian
population to protect their personal data and privacy online by raising their awareness and
developing their abilities in the area.
Along with the promotion of safe and responsible conduct online among the Lithuanian
population, another very important challenge is the protection of ICT infrastructure and
information resources that are important for the State. The number of incidents which are
potentially dangerous to the key information systems and websites of public institutions is
increasing in Lithuania. The analysis of the security of the State’s information resources and
infrastructure shows that the current system for the coordination of electronic information safety
management in the public sector is not effective enough; the detection and elimination of
vulnerabilities of information technologies are not centralised enough; the security of the
information infrastructure of extreme importance is ensured only at the institutional level; the
Lithuanian National Computer Emergency Response Team CERT-LT, ‘Summary of CERT-LT activities in 2011’,
18/01/2012, <http://www.esaugumas.lt/index.php?-522660412>.
29
34
Partnership Agreement
reserve of information resources and infrastructure intended for supporting the operation of
infrastructure and information resources of extreme importance in cases of emergencies has not
been created; cooperation between entities of the Lithuanian private and public sectors is
insufficient in this area; highly-skilled electronic information security specialists are lacking. In
the 2007-2013 programming period, important projects aimed at ensuring the safety of the
State’s most important information systems were implemented by public institutions with the
support of the EU Structural and Cohesion Funds, however, it is necessary to develop these
activities further and focus efforts and resources on the areas where the dependence on
information resources and the use of services is the highest and criminal activities and incidents
can cause the greatest damage or even a national crisis. A safe cyber space is in the interests of
all entities involved in activities related to the services provided in the cyber space, i.e. public
institutions, private economic entities, the academic community, residents. Activities in this area
should ensure that interests of all the parties involved are protected, they have to be systematic
and continuous in order to create a digital space which is safe, based on trust and responsibility
of interacting persons.
E-services. Lithuanian internet users are ahead the average EU internet user with regard
to various purposes of internet use, except for the use of e-commerce. For instance, in 2012,
online newspapers and magazines were read by 92% of the internet users (the best result in the
EU), 71% used online voice and video calls and 65% online banking services (all these
indicators are well above the EU average). However, both internet users and all the Lithuanian
population used public e-services relatively little.
Although in 2012 more basic public services (an increase from 68% to 87%) and fully
interactive services (an increase from 40% to 75%) were transferred online compared to 2006,
Lithuania is still lagging behind the EU average in terms of the transfer of eight basic public
services for business and twenty basic public services for the population into the e-environment,
as well as the level of interactivity of these services. The transfer of self-government public
services into the e-environment is slow (only the first and the second level are dominating).
According to the report on the implementation of the Digital Agenda for Europe 2012, a
third (37%) of the Lithuanian population has used e-services of the public sector (the EU average
was 44%) over last 12 months. This indicator has been growing consistently as more useful and
necessary public and administrative e-services, a large share of which were created using the EU
Structural and Cohesion Funds from 2007 to 2013, are provided because increasingly more
people tend to try these services and start to use them.
The level of customer service based on the ‘one stop shop’ principle is also still
insufficient in public institutions. The flagship initiative ‘Digital Agenda for Europe’ under the
Europe 2020 Strategy promotes the use of advanced IT solutions to improve access to public
services for persons and business35.
According to the data of a study commissioned by the Information Society
Development Committee under the Ministry of Transport and Communications in 2012, the
population needs e-services related to health in particular (20% of the population used them over
last 12 months). Electronic healthcare services and solutions are among the most relevant for the
population because they allow the population to receive and healthcare institutions to provide
high-quality healthcare services. Research shows that in Lithuania electronic healthcare services
are used most actively compared to all groups of e-services: they were used by 20% of the
population over last 12 months. The importance of electronic healthcare services is also revealed
35
EC, Europe 2020. Commission Communication, COM(2010)
<http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:LT:PDF>
30
Partnership Agreement
in the context of the ageing society when improving the access to healthcare services. Mobility
of the population when travelling to the EU also preconditions the need to ensure the exchange
of precise and reliable data on health not only among national healthcare institutions, but also at
the international level. Over the 2007-2013 programming period, institutions participating in the
healthcare system implemented significant activities aimed to create an electronic health record,
e-prescription, telemedicine and other basic electronic healthcare systems with the intention to
continue these activities in the 2014-2020 programming period. It is also intended to develop
electronic healthcare services and solutions that ensure the collection of precise, detailed and
interactive e-data on patients’ health, safe and reliable exchange, as well as the use, interaction
and integration of the existing solutions.
Other most commonly used areas of e-services are tax declaration, search for a job,
social and social insurance services, etc. Merely 7% of the population use e-services via the
central access to administrative and public e-services E-government gateway
(www.epaslaugos.lt). It is noteworthy that expectations and requirements of service recipients
are growing rapidly; they want convenient, easily accessible and easily received e-services. The
key challenge for public institutions, therefore, is the introduction of e-services that are focussed
on events in the service recipient’s life, comprehensive, interactive and smart; moreover, in the
course of e-service development, optimum solutions in terms of costs and procedures should be
chosen with a view of boosting performance efficiency and reducing operational costs in the
public sector.
In the 2014-2020 programming period, it is necessary to continue the development of
the Lithuanian e-health system and e-health services.
As to cultural and linguistic e-services, the degree of consumers’ awareness and the
using of these services is low. E-services related to digital heritage were used by 7% of the
internet users36, and 17% of the internet users used e-services related to the Lithuanian language. 37
Not all digitised items are available online (according to the data of the Ministry of Culture for
2011, 85% of all the digitised items), international availability of the Lithuanian cultural heritage
is low (only 9,000 deposited items in Europeana at the end of 2011). The number of digitised
cultural heritage items has increased and their availability improved over the recent years – over
650,000 cultural heritage items were digitised and provided for public access using the EU
Structural and Cohesion Funds over the 2007-2013 programming period. However, some of
these items are functional only in the environment of a specific hardware and software. Due to
fast technological changes, this digitised material starts ageing and a threat of its loss is posed.
Moreover, they still constitute a small share of the values stored in the country’s memory
institutions, which makes it important to ensure the continuity of these activities. The Lithuanian
language is one of the non-commercial European languages, facing major difficulties in the
development of language technologies. Lithuanian institutions of culture and history (memory)
lack equipment as well as financial and human resources required for digitising.
A feasibility study on the creation of intelligent transport systems (ITS), conducted in
Lithuania in 2011, provides for five priority areas and eleven ITS projects. The ITS projects
implemented in the 2007-2013 programming period were aimed at better management of cargo
flows, management of different modes of transport, route planning, etc. However, relatively few
e-services and solutions were introduced in this area. The aim is to develop ITSs further in order
to facilitate transportation, reduce road accident rates, contribute to environmental initiatives, etc.
36
37
3% of the population.
ISDC survey data, 2012
31
Partnership Agreement
At the moment, various spatial data are collected and accumulated by different
institutions in the country, therefore, its availability is limited; data on the same geographic
location are not equally detailed and are provided in different formats. The target of Directive
2007/2/EC of the European Parliament and of the Council of 14 March 2007 establishing an
Infrastructure for Spatial Information in the European Community (INSPIRE) (OJ 2007 L 108,
p. 1) (hereinafter referred to as the ‘INSPIRE Directive’), which has to be implemented by 2019,
is to ensure that the spatial data (for instance, water and air pollution, metrological data, items on
digital maps: roads, rivers, etc.) in the EU territory are interoperable and easily accessible. A
significant technical and intellectual base that was developed in the 2007-2013 programming
period makes it possible for Lithuania to implement the requirements for interoperability and
disclosure of spatial data to the public set forth in Directive 2007/2/EB (INSPIRE) of the
European Parliament and of the Council by 2019, however, the required human and financial
resources have to be focused, as well as all the required technical, procedural and regulatory
solutions have to be put in place in time to achieve this target.
As investments in the 2007-2013 programming period showed, an optimum use of the
ICT infrastructure and programme resources in the public sector is a very important aspect of egovernment development. The use of these resources in Lithuania is decentralised, therefore,
individual public institutions have created a number of information resources and tools which are
not sufficiently interoperable; the state information infrastructure is not used optimally and
efficiently. A preliminary assessment shows that 126 state information systems, 88 registers 38 and
85 server/data centres the resources of which were only partially used (up to 30-40%39) operated
in Lithuania at the start of 2012. The Law on Management of State Information Resources,
effective as of 1 January 2012, sets forth consolidation principles to be implemented for the
infrastructure in the public sector. At the moment, trends and prospects of the State Information
Technology Infrastructure, which according to the plan will be funded by the EU Structural and
Cohesion Funds in the 2014-2020 programming period and is intended for the creation of the
architectural model of the state information resources infrastructure, the scenarios of transition to
this model and the plan of measures to optimise the management and development of the state
information technologies infrastructure, are assessed. On the basis of this plan, it is intended to
introduce solutions designed for using the ICT base and IT tools available in the country, as well
as accumulated information resources as efficiently as possible.
ICT in business. Lithuanian enterprises are fairly active internet users (87% of the
enterprises have fixed broadband connection) and exploit opportunities offered by it (for
instance, the share of income generated by small and medium-sized enterprises (SMEs) from ecommerce exceeds the EU average). Lithuanian business enterprises also remain among the most
active users of e-government services in the EU. According to the data of the Statistics Lithuania
for 2012, 99% of the country’s enterprises communicated with public institutions online: 99%
downloaded or submitted various completed forms, 97% performed administrative procedures
online, 34% received public procurement documents and specifications from public institutions
(Lithuanian and the EU) online, 30% submitted tenders in the e-procurement system. In 2012, a
qualified electronic signature was used by 86% of the enterprises (77% of the enterprises used
electronic signature for receiving e-services, 28% for providing e-services and 44% for signing
e-documents to be sent).
38
According to the list of State Information Systems and Registers which is operated by the Information Society
Development Committee under the Ministry of Transport and Communications, <http://www.ivpk.lt/vis>.
39
European Social, Legal and Economic Projects, ‘Expanded Assessment of the Impact of the Draft Law on
Management of State Information Resources of the Republic of Lithuania’, May 2011, Vilnius.
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Partnership Agreement
With a view of improving the efficiency and transparency of public procurement in
Lithuania, a considerable progress was made in the development of electronic and centralised
public procurement. From 2009 to 2012, e-procurement increased by 47% (it accounts for 83.1%
of all the tenders launched in 2012) and its scope accounted for 75.2% of the total value of the
tenders launched in 2012. Further development of e-procurement is limited by a complicated and
inefficiently operating Central Public Procurement Information System, as well as insufficient
abilities and skills among representatives of contracting authorities to perform such procurement,
etc. It is notable that more efficient functioning of the public procurement system is also
impeded by very frequent amendments to legal acts, insufficient institutional abilities of
participants in the public procurement system (including personnel’s competence) in areas such as
the implementation of public procurement, legal regulation, the provision of methodological support
to contracting authorities, the monitoring of public procurement, etc.
The public sector is the largest information producer and supplier in Europe as stated in
the Digital Agenda for Europe. A preliminary value of this market is EUR 32 billion. A repeated
use of the public sector’s data for commercial or non-commercial purposes offers broad
possibilities for the creation of new businesses and jobs, as well as new activity models and
products. The Lithuanian legal base makes it possible for private persons to receive and use
information of the state and municipalities. Business enterprises, on the other hand, still make
very little use of the possibilities offered by re-use of the public sector’s information. According
to the data for 2013, 56% of the enterprises used information received from public institutions
for commercial activities, however, only a small share of these enterprises uses this information
for the development of new commercial digital services and products.
The ICT infrastructure, designed in Lithuania during the programming periods 2004-2006 and
2007-2013, creates a serious potential for further development which faces major challenges
related to a broader use of high-speed internet in households, as well as the creation of safer,
transparent and friendly conditions for the provision of e-services in the public sector.
1.1.2.2. Challenges of sustainable growth – development of modern basic infrastructure,
creation of better business environment and sustainable and efficient Use of natural
resources
1.1.2.2.1. Development of modern basic infrastructure
Transport infrastructure. The development of a single, integrated and efficient
transport system is one of the main EU transport policy objectives. Lithuanian transport network
is a part of the transport system in the Baltic Sea Region which has a potential of becoming an
important chain in shaping and developing the Eurasian transport flows. The quality and safety
of the trans-European network (TEN-T) and the integrated multimodal transport corridors
enabling efficient exploitation of roads, railways, sea routes or air ways is an important element
of the EU and Lithuanian transport policy. In 2012, transport and communications sector
generated 11% of Lithuania's GDP40..
A significant part of the current TEN-T network in Lithuania does not meet the required
standards. Therefore, in order to ensure smooth international and transit transport flows and
40
Statistics Lithuania.
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Partnership Agreement
traffic safety, weaknesses of the TEN-T network have to be eliminated. Moreover, there is no
efficient interoperability of different transport modes safeguarded in Lithuania. In addition to
saving freight costs and increasing flexibility of transport services, the combination of different
transport modes exerts less adverse impact on ecologic and social environment. These transport
infrastructure problems in Lithuania limit freight and passenger mobility in the Baltic Sea
Region. When the Republic of Lithuania accessed the EU and entered the Schengen area, the
importance of border control posts infrastructure for the efficiency of transit and border crossing
flows became even greater, quality requirements became tighter as well. The legal status and
infrastructure of the current border control posts at the external EU borders does not in all
instances meet the applicable requirements. Therefore the aim is to ensure smooth functioning of
the border control posts by safeguarding rapid freight and passenger control.
From all transport development areas the major share of investments from the Cohesion
Fund, ERDF (under thematic objective 7) and CEF are to be channelled to tackle the railway
challenges.
As regards the maintenance of the developed and upgraded infrastructure the current
practice will be continued, where the maintenance of an infrastructure is the responsibility of its
operator and the money is raised through the rates applicable to the users of the infrastructure.
National allocations for the maintenance of the road transport infrastructure are to be allocated
under the tailored Road Development and Maintenance Programme (RDMP).
Railway transport is a special focus in the EU transport system – it is treated as a
priority transport mode which is expected to comprise the major part of travels and
transportation in the future and to help to solve the key problems of the transport system. The
aim is to develop a Europe-wide single European railway area.
The strategic goals until 2050 identified by the EC in 2011 in the White Paper in
relation to transportation of passengers by railways envision that the majority of mediumdistance passenger transport should go by rail; the European network of high-speed trains should
be expanded by tripling the length of the existing high-speed rail network; a dense railway
network should be maintained in all Member States; all core network airports should be
connected to the rail network. The current Lithuanian railway sector significantly lags behind the
modern and interrelated railway transport systems of the EU Member States from technical,
economic and technological points of view. The primary and major problem of the railway
infrastructure in Lithuania is the absence of connection with European (1435 mm wide) gauge
railway network. The ongoing phase of the ‘Rail Baltica’ project will secure construction of the
relevant gauge rail from the Lithuanian-Polish border to Kaunas, however, freight and passenger
mobility via railways on the northern-southern axis remains confined. To tackle the problem it is
planned to continue the ‘Rail Baltica’ project in a section from Kaunas to Lithuanian national
border with Latvia. The implementation of the ‘Rail Baltica’ project will also help to improve
the attractiveness of the railway transport over road transport which currently comprises the
majority of passenger and freight transportation in northern-southern destinations. Efficient
railway transport would improve access to Lithuania, facilitate convenient and rapid access to
administrative, cultural and political centres of the countries in the Baltic Sea Region, enable to
implement EU TEN-T network policy provisions – connect the capitals of the EU Member
States (new high-speed European gauge rail from Kaunas to Vilnius), and would allow Lithuania
to benefit from the European railway corridor No VIII supported by the EC (Rotterdam/
Antwerp – Kaunas) and from the Baltic-Adrian corridor. ‘Rail Baltica’ will also contribute to the
EUSBSR priority area 'Transport – improving internal and external transport links’ by
connecting four countries of the region, Poland, Lithuania, Latvia and Estonia.
The Lithuanian railway system is closely integrated into the Eastern-Western transport
corridor; in the corridor IX B, the potential of combined transportation services via shuttle train
‘Viking’ (route Klaipėda-Minsk-Odessa/Iljichivsk) is well exploited. Further development of the
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Partnership Agreement
infrastructure in the Eastern-Western corridor is of critical importance for entering the leading
transit routes for trading exchanges between the EU and the East (including Asia). The EasternWestern corridor is one of the most important intermodal transport development projects in
Lithuania. The Eastern-Western transport corridor is a regional project which naturally
complements the main international transport and logistic chains. Modernisation of the corridor
IX B (Klaipėda-Radviliškis-Vilnius-Minsk) should involve electrification of lines, construction
of second rail tracks, reconstruction of railway stations. The current railway stations are
insufficiently integrated with other transport modes, offer insufficient convenience for
passengers, lack clearer provisions of information and references. The stations have to be
developed to make them more attractive for passengers and to ensure interoperability of railways
and other transport modes.
The existing railway infrastructure in Lithuania is not competitive in terms of freight
and passenger transportation. The facilities are physically worn out, the basic technical
parameters of railway infrastructure (for instance, the curve radiuses) limits the speed in many
sections therefore the existing railway infrastructure creates the ‘bottleneck’ effect. To increase
the capacity of TEN-T network these infrastructure problems have to be solved. Another
problem as a weakness of the railway transport infrastructure is the lack of double track railway
routes throughout the network. In 2012, double track railway routes in Lithuania accounted for
just 22% of the whole railway network. The above leads to railway transport problems such as
crossing of opposite trains, complications in bypassing slower moving trains.
It should be emphasised that in terms of sustainable development a critical problem of
the railway transport is rather low degree of network electrification – in 2012 only 6.9% of the
Lithuanian railway network was electrified (EU average 52.7%). In the current Lithuanian
railway network only two local passenger transportation railway routes are electrified: Naujoji
Vilnia–Vilnius–Kaunas and Vilnius–Trakai. The length of exploited electrified railway lines
covers 122 km, of which single track comprise 4.98 km, double track - 117.02 km. In order to
scale down the adverse environmental impact of the transport infrastructure, to expand the
possibilities for passenger transportation and to enable freight transportation via electrified
railway lines, the existing network of electrified railway routes is to be expanded.
An important element to be considered in the development of railway infrastructure is
traffic safety. The risks that Lithuanian society is facing in railway sector (in terms of fatalities
and heavy injures as a ratio to the number of kilometres covered by trains per year) is more than
3 times as high as the risks posed to the society by railway transport in the EU countries
(Lithuanian rate - 2590, EU - 785). Railway transport infrastructure (level crossings, in
particular), which causes the main railway traffic safety problems, must be upgraded.
In order to abate the noise generated by railways and to implement the Directive
2002/49/EC of the European Parliament and of the Council relating to assessment and
management of environmental noise, noise mitigation measures need to be installed.
The main challenges in the railway transport are related to small degree of network
electrification, small density of the network and absence of narrow gauge railway.
Currently road infrastructure is one of the essential factors deciding the operational
efficiency of the transport and has a huge significance to Lithuania’s economic and social
development. Lithuanian road transport system generates about 7% of GDP. The experience
from the 2007-2013 programming period shows that along the reconstructed national and
regional roads new businesses, new settlers are establishing, more diversified activities (logistics,
tourism, manufacturing companies and service providers) are being developed. Therefore a
good network of roads is the foundation for development, while connections with TEN-T
network are an important basis for economic growth of the regional centres.
To increase freight and passenger mobility via road transport one of the highest
priorities for Lithuania is to ensure proper technical level of the Lithuanian TEN-T network
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Partnership Agreement
consisting of 1617 km of roads in terms of speed, traffic safety, security and convenience. A
significant part of the current roads of the TEN-T network in Lithuania does not meet the
requirements applicable to those roads and lag behind the standards of the West Europe in terms
of speed, traffic safety, security and convenience. According to 2010 Eurostat data, in Lithuania
59% of freight is transported via roads, 41% via railroads, similar breakdown among EU-27 is
registered only in Estonia, Latvia, Romania and Austria. In other EU-27 countries, 83% of
freight is carried by roads and only 17% by railroads. This limits mobility in the corridors of
North-South (‘Via Baltica’) and East-West. Moreover, the road network of Lithuania still has
not reached the standards of the West European countries and meets neither loading (only 30%
of roadways meet the axle load of 11.5 tons requirements) nor traffic safety requirements. With
the increasing number of cars and traffic intensity (in particular, freight vehicles with the gross
weight of more than 12 tons, freight vehicles with three or more axles (their sequence), the
intensity of the annual average daily traffic on arterial roads in 2013 increased by 1.56 times
compared to 2005) the need for modernisation and expansion of roads network is increasing.
Taking that into consideration the TEN-T network roads and access routes must be further
modernised, expanded and efficiently integrated into the TEN-T network. The expansion of
international transport corridors is one of the EUSBSR priorities. Therefore the upgrading of
‘Rail Baltica’ connecting Poland, Lithuania, Latvia and Estonia, will contribute to the EUSBSR
priority area 'Transport – improving internal and external transport links’.
The Lithuanian roads network consists of roads of national significance, which include
highways and motorways of international (TEN-T) significance, regional roads and municipal
roads consisting of local roads/streets run by municipalities. The roads network must guarantee a
safe and efficient access from regional centres and remote areas to the main TEN-T network.
Therefore connections between TEN-T network and regional centres and between regional
centres and local areas are needed. Without guarantees of safe connection via access routes and
interconnections, the national level traffic safety will not improve.
Roads transport system must efficiently interconnect primary, secondary roads and
trunk roads. Primary roads refer to gravel roads (regional roads with asphalt pavement in rural
areas (capillary), where the traffic starts to build); secondary roads refer to the regional roads
which integrate local roads and where traffic flows generate; tertiary roads refer to trunk roads
whereby access to the main TEN-T networks is guaranteed. In the suburban areas of the
Lithuanian major cities, an intensive urbanisation is observed near the roads of national
significance, the traffic is becoming more intensive therefore the urban accesses are being
reconstructed and their capacity is being increased. Construction of bypasses in the cities and
towns, reconstruction of streets in the cities would be a way to reduce traffic congestions,
decrease ambient air pollution and noise. With the view to improving the connection via trunk
roads, shifting the freight transport from centres of the cities and ensuring the sufficient capacity
of the roads of international significance, bypasses of the cities, reconstruction of trunk roads,
urban transport nods, installation of multi-level crossings and other measures for the sake of
traffic safety and environmental protection are planned. By 2012 the financing from the
Cohesion Fund has been used to construct about 42 km of bypasses. However, a big part of the
cities still have no bypasses. This leads to big transit flows of personal and freight vehicles
within the cities which in turn result in lower speed within the TEN-T network.
Proper status of the transport infrastructure is one of the major drivers for smooth and
sustainable regional development because it is only with developed modern transport
infrastructure the business friendly environment able to attract investments can be created and
better employment opportunities for regional population can be facilitated. Based on the results
from the assessment of qualitative parameters of the roads surface, the status of regional and
local roads, in particular in high intensity regional roads, is aggravating each year. Insufficient
degree of reconstruction and expansion of the network of local roads does not allow to ensure
36
Partnership Agreement
equal competitive conditions between large cities and regional centres. The development of road
transport infrastructure and the modernisation of the current roads would enable to reach a better
territorial cohesion in the regions. Investments into transport infrastructure have positive impact
on economic growth, secure jobs, develop trade, geographic accessibility and mobility of people.
These must be planned with consideration to the positive impact on economic growth and
mitigation of negative environmental impact.
Another critical problem in relation to Lithuanian transport is insufficient traffic safety.
Given the current situation on the roads (number of fatalities and injuries) ensuring of traffic
safety remains the highest priority. In the recent five years the basic breakthrough in terms of
traffic safety was reached. Lithuania was one of just a few countries who reached the goal
defined in the Verona Declaration and 2011 White Paper on transport to halve the number of
road fatalities in a 10 years’ span. The dynamics of this indicator puts Lithuania among the
leading countries in the EU. However the gap to the EU average is still rather significant. The
average number of road fatalities in Lithuanian is twice as big as in the EU. Furthermore, the
traffic safety in Lithuania is still among the worst in the EU, while the rate of accidents on the
roads was increasing with each year (only in 2008 it was smaller compared to 2007), while in
other EU countries a downwards tendency has been recorded. One of the basic reasons for this
problem is poor status of the roads. The status of 32 % of Lithuanian regional roads is poor or
very poor, while the scope of the current reconstruction of roads surface (1.6% of the total length
of the roads in 2009) is five times smaller compared to the optimal level. The EU Directive
2008/96/EC stipulates that measures to increase traffic safety are to be installed throughout the
whole network of roads infrastructure. The environment that would be safe for the traffic
participants (the major element of which is efficient engineering and intelligent traffic safety
measures) has not been created in the roads yet. For instance, a safe roundabout crossing
constructed in a dangerous crossing would reduce the number of fatalities and injuries by up to
95 %. Installation of safe traffic measures has significantly reduced the number of ‘black spots’.
In 2006 there were 270 ‘black spots’, while in 2013 there officially remained 43 'black spots'.
Another measure to ensure traffic safety is pedestrian and bicycle paths. Since 2007 there were
165 km of pedestrian and bicycle paths constructed along regional roads of national significance
and local roads. All in all, the length of the paths increased from 1085 to 1250 km over the
period 2007–2012 along the roads of national significance. That has led to a significant
improvement of traffic safety: In 2007, 235 pedestrians and 73 bicyclists were killed, in 2011 –
137 and 26, respectively. Roundabout crossings, safety islands, bicycle paths also reduce air
pollution and mitigate other negative impact of the transport on the environment and residential
areas.
A lack of a common local or regional (covering both a regional centre and the
surrounding territories) strategy slows down the development of the transport network, in
particular in peripheral areas of the country. Municipalities prepare strategic plans oriented
towards tackling of transport network problems in their territories, however these plans do not
take into consideration infrastructural and political issues related to objects covering a few
municipalities, for instance, arrangements of intercity communication, renovation of routes,
regional and local roads. This leads to social and environmental implications – part of the
population of Lithuanian rural or suburban areas are isolated from the centres that offer better
employment opportunities or are able to reach such places by cars only (which is a big problem
to people with small income or unemployed people); an intense traffic flow causes
environmental problems in the cities (environmental pollution, noise). The lagging behind of
small and medium towns (both physical and economical) is determined by the lack of their
integration into national and trans-European transport networks, insufficient exploitation of
different transport modes, while growing automobilisation is reducing the competitiveness of the
public transport.
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Partnership Agreement
The main challenges of the roads transport are related to ensuring quality and safety
parameters of the TEN-T network, connection of secondary and tertiary roads to the TEN-T
network, construction of bypass roads, ensuring of safe traffic.
An integral part of the TEN-T IX B transport corridor is Klaipėda State Seaport which
is one of the most important and largest transport nodes in Lithuania connecting the transport of
the sea, roads, railways and inland waterways. The current infrastructure of Klaipėda Seaport
and its quality does not ensure efficient interoperability between water- and land-bound
transport; the freight capacity via land transport and the relevant capacity of the Port is not
sufficient. In Klaipėda State Seaport, the freight brought and carried via railroads accounts for
74% of the total freight that passes the Port. The current railway capacity is 40 million tons per
year, however with the increasing flow of freight the current railway capacity will not be
sufficient in the future. Compared to the roads transport, only a very small part of containers are
carried to and from the Port via railways, which leads to an increasing flow of freight vehicles in
the port city in spite of the fact that the major part of other types of cargos are transported via
railways. Therefore, in the development of the Klaipėda Seaport infrastructure a priority would
be given to efficient connection of the Seaport with the railway corridors, thereby stimulating
establishment of container terminals and technologies in the outskirts the Klaipėda State Seaport
where flows from all terminals would be consolidated and the concept of shuttle trains would be
implemented.
In addition to that, the railway access roads and stations need to be modernised,
approach channel of the port and the breakwaters have to be refurbished. The harbour deepening
works should also be in line with the environmental requirements (Malku bay is polluted with
tributyltin compounds (TBT)).
Given that in the shipping market the number of ships in the ports has in principle not
been increasing for a certain period of time and that the increase in size parameters of the vessels
has been recorded instead, the largest focus is to be placed on ensuring safety and mitigating of
negative environmental impact of the shipping. The current capacities of the container and
general freight terminals are confined because due to too small depth of its waters the port is not
able to receive container ships with the capacity of 6000 TEU. This leads to a larger flow of
vessels in the port which has adverse environmental implications and is directly related to air
pollution. Adapting of the port for receiving of ships with larger draught would help to reduce air
pollution: the more cargo per ship – the less operating ships – the less air pollution – the better
carbon dioxide (CO2) prevention. For receiving ships with larger draught, the construction of an
external deep-water seaport might be an option. However, in the short term, in order to increase
shipping safety in the port approach channel, the approach channel of the Klaipėda Seaport
should be deepened and widened. When the liquefied natural gas terminal (LNG) will come into
exploitation and ships carrying LNG will start coming to Klaipėda State Seaport, it will be in
particular important. The safety of navigation in the port must be secured for those ships, the
current infrastructure must be modernised and new infrastructure must be developed to be able to
serve new generation larger ships. Adapting of the Port to receive ships of maximum size would
help to ensure the safety of their manoeuvring thereby improving the safety of shipping and to
reduce adverse environmental impact of the Port’s operations.
The main challenges in this area are related to increasing of the intermodality in order to
achieve a better interoperability between water- and land-bound transport as well as to ensure the
implementation of the environmental measures.
The infrastructure of the inland waterway transport in Lithuania is insufficiently
developed and not adapted to shipping because it does not meet the applicable shipping
requirements leading to under-exploitation of the potential of this transport mode. There are
930.8 km of inland waterways in Lithuania of which: 827.8 km are routes of national
significance, 68 km – routes of local significance, 35 km – perspective routes. The inland
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Partnership Agreement
waterway along the Nemunas river and Curonian Lagoon E-41 Kaunas-Jurbarkas-Klaipėda is
categorized as inland waterway of international significance. In these inland waterways, the
parameters of the waterways set forth in the Agreement on Main Inland Waterways of
International Importance and the Inventory of Main Standards and Parameters of the Waterway
Network (TRANS/SC.3/144) of the United Nations Economic Commission for Europe should be
maintained. The current inland waterway transport is under-developed: the inland ports no longer
meet the current standards, the vessels are outdated; a rather big recreational, entertainment,
tourism, freight and communication potential is not exploited; the interoperability of inland
waterway transport and other modes of transport is poorly developed; the shipping infrastructure
is neglected (one of the main reasons for that was non-exploitation of inland waterways) and in a
poor status, outdated and in many instances not suitable for use.
The inland water transport as an integral part of the Lithuanian transport system is to be
developed and integrated into the operations of the Klaipėda State Seaport and other logistics and
multimodal transport centres securing the expansion of waterbone transport and reducing the
loads on motorways. Currently cargo transportation via inland waterways is not attractive due to
under-developed interoperability with other transport modes: there are no convenient facilities to
reload cargos from/to road and railway transport. During 2007-2014 programming period the
reconstruction of Marvelė wharf was started, however for the sake of further development the
conditions for transportation of passengers and freight via inland waterways of national
significance (in particular inland waterway of international significance E-41 Kaunas-JurbarkasKlaipėda) need to be created. Combination of different transport modes (including inland
waterways) would help to reduce the flows of freight carried via road transport. Since water
transport is ecologically cleaner and safer than other transport modes, its exploitation would
bring benefit in that it will both save freight transportation costs, improve the flexibility of
transportation services and exert less negative environmental and social impact.
An important role in the country’s economy is played by civil aviation, therefore it is
important to ensure sustainable, environment-friendly and uninterrupted provision of air
transport services. With the increased number of tourism, business, diplomatic and other types of
journeys investments in the air transport will be focused on the airport of the TEN-T core
network with the view to improving the infrastructure and mitigating the negative environmental
impact. Connections via airbone transport are important for Lithuania situated in the periphery of
Europe both for communication and for economic reasons. Hence he air transport infrastructure
needs to be modernized and expanded. That would lead to relatively less number of flights and,
consequently, to smaller pollution caused by aircrafts. It should be noted that the renovation of
certain infrastructure elements will allow to reduce the manoeuvring time of aircrafts after
landing and before taking of, which will also contribute to mitigation of aviation related
pollution.
Except for Klaipėda State Seaport the country has no other multimodal transport
freight villages – industrial territories, where the flows of cargos are concentrated and many
transport, logistics and related services operators are functioning. Distribution warehouses and
terminals tailored for uni-modal transport (roads) are rapidly developing in the country.
Warehouses are being established near the major trunk roads, however there are no signs of
territorial concentration therefore it is difficult to improve the interoperability between different
modes of transport. The freight transport policy followed by the EU aims at ensuring a consistent
interoperability between different modes of transport and to develop multimodal transport
solutions, and promotes the shift from road transport to more environmentally friendly transport
modes that are safer in terms of traffics and are less dependent on fossil fuel (railway, water
transport). To ensure interoperability of multimodal transport, in particular within the TEN-T
network, public logistic centres (PLC) should be developed. At the state initiative a decision has
been taken to establish PLCs within the international transport corridors, near the industrial
39
Partnership Agreement
territories and core transport nodes, which would have at least one multimodal transport terminal
for reloading and warehousing of containers, and a logistics park, where companies would be
offering different auxiliary services. In the framework of PLCs development it is also
necessary to ensure efficient connections with the international transport corridors. In 2013 the
construction of Vilnius PLC and Kaunas PLC was started. The Vilnius PLC will be established
near Vaidotai railway distribution station, near the section of the Southern Bypass of Vilnius
which is going to be constructed near this territory. Kaunas PLC will be established near the
main roads of the country (A1 and A6 highways, etc.) and Kaunas international airport.
In the 2014-2020 programming period, the key challenge will be to make a full use of
Lithuania’s potential as a transit country by developing a multimodal transport infrastructure
integrated into the EU transport network and distributed evenly in the territory of Lithuania, as
well as by creating conditions for the sustainable development of the country’s regions. Traffic
safety and environmental aspects should also be ensured.
The existing energy infrastructure is not balanced enough for efficient, safe and
reliable supply of energy resources and services. Capacities are too large in some parts of the
energy infrastructure, and insufficient in others. A similar situation is observed in electricity
grids, i.e. the development of renewable energy sources (RES) requires the development of
electricity grids, and some existing lines should be replaced or upgraded due to excessive
capacities. The above aspects precondition the need to make comprehensive investments into the
energy sector, i.e. assess the effect of a part of investments on other parts of the energy system
and adapt them respectively.
Moreover, old electricity and gas transmission networks with no interconnectivity with the
continental Europe and Nordic networks are operated and therefore energy can be imported only
from a few countries (natural gas can be imported only from a single external supplier).
Lithuania is the largest importer of electricity in the EU, i.e. the level of energy security is very
low. Technical capacities of the Lithuanian natural gas transmission infrastructure accounts for
merely 35.41% using N-1 formula, although it should be at least 100% in accordance with the
EU general requirements.
The under-developed energy supply infrastructure preconditions the lack of competition in
gas, electricity and thermal energy production sectors. The price for imported natural gas
increased by over 50% in Lithuania from 2010 to 2013 and Lithuania has become an EU
Member State paying the highest price for natural gas (the price has increased twofold compared
to the EU average).
To implement the Council’s country-specific recommendation 2014 regarding the
improvement of electricity and gas grids, as well as to contribute to the implementation of the
sub-objective ‘Reliable energy markets’ of the EUSBSR objective ‘Connect the Region’, support
is planned for the construction of new advanced power transmission lines ensuring technical
possibilities for power exchange through interconnectivity with Poland and Sweden, the
reconstruction/modernisation of the existing power transmission lines by ensuring reliable power
supply to consumers, as well as the renovation of internal gas transmission and distribution
networks. At the same time, the integration of RES generated electricity into the electricity
transmission networks will be facilitated.
The main challenge of the 2014–2020 programming period – to ensure efficient, safe and
reliable supply of energy resources and services by installing smart power and gas transmission
networks.
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Partnership Agreement
1.1.2.2.2. Creation of a better environment for business
Lithuania ranked 17th among 189 countries in the world by business environment
index in 2013. It surpassed by only five EU Member States according to this indicator and was
ahead of Estonia (22nd position) and Latvia (24th position)41. However, compared to other EU
Member States, the state’s regulatory burden is rather heavy in Lithuania – Lithuania ranks the
20th in the EU by this indicator and 22nd by the taxation scope and efficiency42. Therefore, the
improvement of regulation and the reduction of administrative burden for SMEs remain relevant
in the new programming period with a view of boosting the population’s entrepreneurship.
Lithuania does not pay sufficient attention to the promotion of the competitive
environment primarily due to institutional-systemic reasons. A strategic approach to issues in
the competition policy is lacking; no approved guidelines for the competition policy are in place;
authorisations, competences, initiatives and activity prioritisation (as well as respective material
support) are insufficient in the Competition Council, as well as the responsibility of
administrations for violations of the Law on Competition.
According to the Eurostat data, Lithuania lags behind the EU average by the level of
entrepreneurship: in 2010, there were 39 enterprises and persons working under business
certificates or engaged in registered individual activities per 1,000 population in Lithuania (the
EU average was 48). The fact that when the global economic crisis started this indicator in
Lithuania dropped from 42 in 2008 to 36 in 2009 and almost did not grow in 2010, i.e. increased
only up to 39, causes concern.
On the other hand, according to the data of a survey conducted in 2012, 18% of the
respondents intend to establish their own business within the coming three years 43. At the
moment, there are eight business incubators in Lithuania (in Vilnius, Kaunas, Visaginas, Telšiai,
Šiauliai and Kazlų Rūda) and only 14 of 50 Lithuanian municipalities ensure that entrepreneurs
have a constant access to information and consultation support under preferential conditions, if
needed44. Substantial EU funds were invested in business incubators from 2007 to 2013, but the
need for support to business incubators with SMEs producing for niche markets remains in the
2014-2020 programming period. Therefore, one of the development challenges in boosting the
population’s entrepreneurship (among young people, women and other target groups in
particular) is raising awareness and consultations on the possibilities to set up business and
incubation services, i.e. ensuring the availability of services for the start and development of
business.
Limited entrepreneurship and business development are also the result of a limited
availability of funding for the development of new and existing business, especially micro
enterprises. Although Lithuania is in line with the EU average of 19% by the availability of
funding according to the data for 2011, SMEs face the problem of secure funding when their
The World Bank, ‘Doing Business 2014’. < http://www.doingbusiness.org/rankings >.
World Economic Forum, ‘The Global Competitiveness Report 2010-2011’.
<http://www.weforum.org/issues/global-competitiveness>.
43
European Commission, ‘SBA Fact Sheet 2013. Lithuania’. <http://ec.europa.eu/enterprise/policies/sme/factsfigures-analysis/performance-review/files/countries-sheets/2013/lithuania_en.pdf>.
44
Information provided by ‘Enterprise Lithuania‘.
41
41
42
Partnership Agreement
applications are rejected or too stringent funding conditions are offered45. Innovative, highgrowth and international market-focused enterprises as well as enterprises in the creative and
cultural industries (CCIs) that are engaged in activities distinguished by a higher risk due to
innovativeness and uniqueness of their products and services also face the problems of funding
availability.
According to the Statistics Lithuania, 65,461 operated in Lithuania in 2012. During the
2007-2013 programming period, 8,250 SMEs, i.e. 12.6% of the operating SMEs, were supported
under financial engineering and related measures of the EU Structural and Cohesion Funds by
December 2013. These enterprises were granted 1,875 loans and 2,776 guarantees; 54 risk
capital investments were made; 3,545 enterprises made use of the partial compensation of
interest.
The recent global economic and financial crisis has lead to a complicated situation in
the Lithuanian credits market: significant mismatch between the expectations of the sellers and
the buyers, tightened lending criteria, lack of financing in private capital market, slow business
development due to unwillingness/ inability of the companies to invest and focusing on search
for funding of their working capital instead, waiting for the economy to recover has put a burden
on the implementation of finance engineering instruments aimed at business development and on
the absorption of finances earmarked for that purpose. On the other hand, the introduction of
finance engineering instruments during the period of financial crisis has given the SMEs the
opportunity to partially solve the problem of worse access to market financing.
The number of agricultural companies registered and operating in the agricultural sector
fell by 10% over the period 2007–2013. In rural areas, the change in the number of nonagricultural SMEs was negligible. In 2003 there were 9,000 companies of the type, while in 2012
the number increased to about 10,000 (of which 78% were micro enterprises). These enterprises
comprise about 15% of the total number of enterprises operating in Lithuania. Rural areas with
prevailing unfavourable conditions for agricultural activities are dominated by negative trends in
the development of SMEs – in 2011 there were up to nine SMEs per 1,000 rural population of
working age. In the course of the implementation of measures of the RDP for 2007-2013, which
were intended for promoting other than agricultural business, by the end of 2013 support was
provided to 414 business enterprises and 463 self-employed persons (implemented projects were
usually related to rural tourism activities, the provision of various cleaning services,
construction, construction site preparation works, landscaping, the production of pellets and
other fuel from biomass, the production of wooden products, retail trade, etc.). The
diversification on non-agricultural activities in Lithuanian rural areas is still limited.
In the 2007-2013 period, the financial engineering measure was used with EAFRD
funds under which preferential loans were granted to entities related to agricultural production
and processing – in total 474 loan contracts with a value of EUR 39.1 million were concluded. In
the new programming period, financial engineering measures will be relevant for both
agricultural and other non-agricultural entities in rural areas (starting business in particular). In
the 2014-2020 programming period, financial engineering measures is being implemented with
regard to the results of the ex ante evaluation of financing engineering.
According to Eurostat, in 2011 Lithuania was 18th in the EU in terms of integration
into foreign markets. The national strategic target to rank 15th in the EU by this indicator by
202046 shows that the internationalisation of activities in SMEs, which create 63.5% of the total
European Commission, ‚SBA Fact Sheet 2012. Lithuania‘.< http://ec.europa.eu/enterprise/policies/sme/factsfigures-analysis/performance-review/files/countries-sheets/2012/lithuania_en.pdf >
46
Lithuania’s Development Strategy ‘Lithuania 2030’. http://www.lietuva2030.lt/images/stories/2030.pdf
42
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value-added47, is among the key development challenges in order to reduce SME dependence on a
relatively small domestic market and boost their competitiveness and innovativeness.
Even though over the recent years a significant growth of exports has been observed in
Lithuania (exports grew by 29% in 2011 compared to 2010 and Lithuania was rated 5th by this
indicator in the EU), a large share of exported Lithuanian goods (around 38% according to the
data for the third quarter of 2013) is not of Lithuanian origin, i.e. goods are not produced in
Lithuania. Despite the fact that the exports of Lithuanian goods (at the prices of that time)
constitute a large share of the total exports and GDP, the exports of the goods actually produced
in Lithuania make up a small share of GDP (26.4%). Moreover, there are a lot of enterprises
exporting raw materials and intermediate products among existing exporters. In 2012, the exports
of intermediate products represented 52.7% of the total good exports.
In 2010–2012 the export of Lithuanian agricultural and food products was increasing
with each year (on average, by 22.5 percentage points per year). The competition on the
international markets is likely to grow in the future as well. Lithuanian agricultural and food
sectors will have favourable conditions to increase the scope of exports, to offer ecological
products and products of higher and exceptional quality to the consumers.
The integration of SMEs into foreign markets is partially limited by a lack of
cooperation among enterprises: in the period 2013-2014, Lithuania ranked 109th of 142 states in
terms of the global competitiveness index by cluster development. However, when promoting
the internationalisation of SMEs, it is also important to ensure the availability of public services
to enterprises willing to export and increase SME productivity, as well as the innovativeness of
production and services.
In Lithuania, low labour productivity has been recorded, while the availability of
relatively cheap workforce does not stimulate a shift to more advanced production methods that
would lead to a higher productivity. This can be seen by comparing the labour productivity per
actually worked number of hours in Lithuania and in the EU-27. As per Eurostat data, the labour
productivity per actually worked number of hours in 2011 in Lithuania constituted 64.3%, from
2012 – 65.4% of EU average. Poor labour productivity confines competitiveness of the country’s
enterprises both on the domestic and on the foreign markets.
SME productivity is hampered not only by a slow introduction of already created
technological innovation in production, but also outdated business processes, insufficient
management, marketing and branding skills and experience. Lithuania features a rather low share
of innovative enterprises in the total number of SMEs related to innovation: in 2010, this
indicator accounted for 15.67% (the EU average was 31.8% in 2010, Eurostat). Innovation
statistics shows that Lithuania lags behind the EU average in the process of higher value
generation. Even though according to the European Innovation Scoreboard 2013, Lithuania rated
the second in the EU in terms of business expenditure on innovation other than R&D (acquisition
of equipment, patents and permits), other innovation indicators of Lithuanian SMEs are still well
behind the EU average. For instance, 21.39% of the SMEs introduced product or process
innovation in Lithuania in 2013 (the EU average was 38.44%), and 26.39% of the SMEs
introduced marketing and organisational innovation in 2013 (the EU average was 40.3%)48.
A survey conducted by Statistics Lithuania showed that from 2008 to 2010 innovation
in enterprises was most restricted by its high price (29.6%.) and limited funds within the
European Commission, ‚SBA Fact Sheet 2013. Lithuania‘. <http://ec.europa.eu/enterprise/policies/sme/factsfigures-analysis/performance-review/files/countries-sheets/2013/lithuania_en.pdf>.
48
European Innovation Scoreboard 2013, <http://ec.europa.eu/enterprise/archives/ius2013/IUS2013.html>.
43
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Partnership Agreement
enterprise or a group of enterprises (28.7%)49. On the other hand, such factors as the availability
of public services for business and innovation, as well as appropriate regulation and leadership
skills of enterprise managers also influenced the introduction of innovation in enterprises.
According to the Statistics Lithuania, from 2008 to 2010 24.6% of the enterprises which
introduced technological innovation set a target of reducing environmental pollution and adverse
environmental impacts. Even though Lithuania is in line with the EU average in terms of the
introduction of innovation with a positive environmental impact, Lithuanian SMEs badly lag
behind in terms of other sustainable business development indicators. In 2012, 79% of the
SMEs implemented resource efficiency measures (the EU average was 93%) and only 3% of
them received public support for the implementation of these measures (the EU average was
9%).
Lithuania also falls behind in terms of the supply of green products and services: in
2012 these products and services were offered by 21% of the Lithuanian SMEs (the EU average
was 25%) and only 16% of the SMEs stated that their income from the sales of green products
and services accounted for more than 50% of their annual turnover (the EU average was 22%).
Like in case of resource efficiency measures, only 3% of these enterprises made use of the public
sector’s support to the production of green products and the provision of green services. This
evidences that the potential of public support (including EU structural investments) is not fully
used in promoting the development of sustainable and environment-friendly business.
The CCI potential of the country is under-exploited. The Lithuania's Innovation
Development Programme 2014–2020 raises a strategic goal – to become a creative knowledge
society. The Global Innovation Index 2013 of the World Intellectual Property Organization
records rather high indicators defining education and research level of Lithuania (35th position
among 142 countries). Lithuania has highly qualified human resources, in terms of the level of
education background Lithuania rates 20th. However, this potential of knowledge, education,
creativity of the people, entrepreneurship and innovations is still under-exploited.
The survey of the Economic Contribution of Copyright-Based Industries in Lithuania
conducted in 201250 noted that GDP generated in this area in 2000–2008 fluttered from 4.79 to
5.62%, while in 2008 it constituted 5.4% of GDP. In 2009, Lithuania’s CCI sector had about
70,000 employees which accounted for 4.94% of the overall labour market of Lithuania, while
the GDP share generated by CCI sector amounted to 6%51. The scientific article published in
201352 highlights a link between Lithuanian economy and CCI cycles – in spite of large
economic recession the CCI output did not suffer this change and remained rather stabile.
As recorded in the scoreboard of the Innovation Union, in 2013 the share of SMEs
pursuing technological innovations in Lithuania accounted for 21% of all SMEs, while the EU
average is 38%, those pursuing non-technological innovations accounted for 26% (EU average –
40%). The indicator reflecting protection of Lithuanian intellectual property and income
generated from licensing of the intellectual property is 13 times smaller compared to EU
average.
A wider use of design technologies and other non-technological, creative and cultural
innovations is one of the drivers for the development of products with larger value added and
49
Database of indicators, Statistics Lithuania, <http://db1.stat.gov.lt/statbank/default.asp?w=1280>.
World Intellectual Property Organization, „The Economic Contribution of Copyright-Based Industries in
Lithuania“, 2012, http://www.wipo.int/export/sites/www/copyright/en/performance/pdf/econ_contribution_cr_lt.pdf
51
Feasibility study ‘The Potential of Economic Stimulation by Projects Under the NIP of Creative and Cultural
Industries’.
52
Martinaitytė, E., Kregždaitė, R., ‘Impact of Creative Industries on Economic Development’, Vilnius: 2013,
University of Mykolas Romeris, Studies of Social Sciences, 5(4), p. 1094–1108., ISSN 2029–2244.
44
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Partnership Agreement
larger productivity, and a more sustainable use of resources. With the increasing participation
and involvement of the society and the growing number of flexible, creativity-intensive, selfemployment jobs, CCI gains more opportunities to create innovations and to tailor them in line
with the progress of the society and the economy.
During 2007–2013 period CCI received more than 450 mLTL, of which 21 mLTL
(approximately 5% of the total financing earmarked to CCI sector) were channelled to research
and development in the CCI sector. The companies and the research centres operating in the
CCI sector were actively involved in tailored measures and successfully absorbed the earmarked
funds. Economic stability of the sector is under control, the growth of the generated value
reflects a potential of more active growth. Further development is limited by the lack of suitable
infrastructure, under-developed cooperation networks, lack of knowledge and capacities required
for CCI development, big risk associated with the business projects in this area due to their
unique and innovative nature which complicates capital raising efforts. The cooperation between
the countries of the Baltic Sea region in the framework of EUSBSR would facilitate expansion of
CCI cooperation networks, better exploitation of CCI potential and would accordingly contribute
to the increased welfare of the country and the region as a whole.
The share of Gross Value Added (GVA) generated by Lithuania’s agricultural,
forestry and fishery sectors increased from 3.7% to 4% over the period from 2008 to 2012
(EU-28 average constitutes 1.7%). The value added per one actually worked hour in 2012 in
agriculture, forestry and fishery amounted to only 5.45 EUR and accounted for 60.4% of EU-27
average (9.02 EUR). In 2010 in Lithuania, out of 1000 employed people 88 were working in
agriculture, forestry of fishery sector (EU average – 52).
In 2012, the labour productivity in the agricultural sector was lower compared to other
sectors of the economy and lagged behind the average of the country’s economy (average of the
EU-27 – 70%) by 57%. This is a consequence of dependence of technological processes on
environmental factors and their role in providing public goods and services. Smaller labour
productivity in the agricultural sector leads to lower income compared to other sectors. The
agricultural sector also faces the problem of small labour productivity resulting from
unfavourable farm structure, insufficient modernisation of machinery and use of outdated
technologies, unfavourable age structure of the farmers, suboptimal use of production factors,
feeble participation of agricultural stakeholders in diversification of economic activities,
insufficient entrepreneurship of the population of rural areas.
The changes in the structure of farmers’ age reflect unfavourable tendencies. In 2010,
53.6% of farmers and their family members were older than 55 years (EU-27 average – 53.1%).
In 2010, farmers of up to 35 years of age accounted for just 5.9% of all farmers (EU-27 average
– 7.5%) which threatens smooth change of generations in the agricultural sector and continuity
of farming traditions. In 2013, about 44% of Lithuanian farmers were older than 60 years, 43%
were within the 41-60 age interval53.
In Lithuania, the structure of arable land is rather diverse, individual land plots tend to
be small, the arable land plots of the same farm are in distance from each other (fragmented).
According to the 2010 Census of Lithuanian Agriculture, the majority of Lithuanian farms are
from 2 to 9.9 ha by size (124 730 farms) and account for about 62% of the total number (199
910) of farms. An average farm size – 13.7 ha (EU-27 average – 14.3 ha). An average area of
private agricultural land plots – 2.4 ha. The structure of farms by size in Lithuania compared to
EU average in 2010 had marked differences in the size category from 2 ha to 5 ha and 5 ha to
10 ha. Such farms respectively account for 42.43% and 19.96% of all farms of Lithuania,
53
The data of the state enterprise Agricultural Information and Rural Business Centre.
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Partnership Agreement
whereas the EU-27 averages in these categories respectively account for 20.20% and 10.92%.
Hence in Lithuania, the arable land plots tend to be smaller by size and more polarised compared
to average of EU Member States. To facilitate the implementation of the objectives of the land
management and administration system related to building of rational agricultural holdings,
Lithuania has started preparing land consolidation projects back in 2000 already. The aim of the
projects is to form larger land plots that would have better configuration and would be more
suitable for farming, to arrange for the necessary access routes, to form land plots needed for the
implementation of environmental objectives and to implement other goals and objectives of
territorial planning.
Although the technical potential for production of agricultural and food products is
improving, the necessary scope of production of raw materials is not secured. In the recent years,
the number of animals of certain species kept for farming purposes reduced. In 2013, the number
of cattle in Lithuania amounted to 684,000, of which 104,000 animals were kept for meat
production and for mixed purposes, which is by 12.6% less than in 2008, although the number of
animals for meat production and mixed purposes increased by 8.4%; the number of sheep
increased significantly as well: in 2013, the number of sheep was by 60% larger compared to
2008, the number of pigs reduced over the reference period by 19%54.
It should be noted that Lithuanian farmers insufficiently diversify their economic
activities: as demonstrated by 2010 Census of Agriculture only 0.8% of the farms larger than 1
ha also engage in other – income generating non-agricultural activities (EU average 14.3%).
The industry of food and beverages is one of the largest producing and processing
industries in Lithuania: the production sold by the food and beverages industry in 2009
accounted for 18%. The share of the Gross Value Added generated by the production sector of
food products, beverages and tobacco products grew since 2009 and in 2012 accounted for 4.8%
being 2.3 times larger compared to EU-27 average. Although the companies of this industrial
area were investing a lot, the Gross Value Added per one entity engaged in food and beverages
industry is still a few times smaller than EU average55. As per Eurostat data, the Value Added
per one actually worked hour in 2011 constituted 14.8 EUR in Lithuanian food and beverages
industry (EU-27 average 28.4 EUR) and was by 48% smaller than the EU-27 average. Therefore
companies of food industry willing to remain competitive need to increase their labour
productivity more rapidly, to introduce innovations and new technologies, improve the quality of
their products, value added and marketing.
There is an increasing demand for vegetables and fruit in the country, however, given
the particular labour-intensiveness of the sector it is necessary to support the investments
contributing to higher labour productivity of the sector and improved presentation of vegetables
and fruits to the consumers.
With the increasing demand for fresh and natural agricultural and food products grown
and produced at the place of consumers’ residence, farmers, in particular small and mediumsized, have a possibility to sell their products directly to consumers and increase their income in
this way. However, direct sales are not sufficiently developed in Lithuania: individual farmers
are incapable of reaching consumers themselves, all the more so finding and maintaining regular
consumers, therefore, united efforts for cooperation of producers and consumers are required.
The Lithuanian fisheries sector consists of such major subsectors as fishing,
aquaculture, processing of fishery products. The fishing subsector has some problematic aspects,
54
The data of the state enterprise Agricultural Information and Rural Business Centre.
Study ‘Impact of EU Support on Agriculture and Rural Development’, UAB ‘Ekonominės konsultacijos ir
tyrimai’, 2013 m.
46
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Partnership Agreement
including the outdated, energy inefficient and environmentally unfriendly Baltic Sea fleet;
insufficient dissemination of advanced technologies and best practice; limited financial
possibilities of the majority of micro, small and medium-sized fishing enterprises to invest into
the creation of value-added and the development of sales, their low profitability, insufficiently
developed fishing infrastructure: vessel service, fish unloading and primary processing;
underdeveloped infrastructure of fish waste generated in fishing activities, unwanted catches,
management and utilisation of vessels’ technical waste; shortage of specialists and high-skilled
staff in the fishing sector and their emigration abroad; an underdeveloped system for specialist
training and professional development of representatives from the fisheries sector; an
underdeveloped target system for applied research; insufficiently maintained fish migration
routes and spawning grounds; insufficient stock of valuable commercial fish in internal bodies of
water.
An increase in the production capacities in the subsector of commercial fishing has been
considerably limited by sustainability and efficient consumption factors, including restrictions on
the use of resources, in the recent years. Therefore, issues related to the improvement of labour
efficiency and increase of production capacities in commercial fishing can be dealt with only
through added performance and creation of value-added. Whereas production processes in the
majority of enterprises in the Lithuanian fishery product processing sector that have introduced
advanced technologies and some aquaculture enterprises are performed efficiently.
Among weaknesses observed in the Lithuanian aquaculture sector are insufficient
dissemination of advanced technologies and best production practice; limited financial
possibilities of the majority of micro (including farms of natural persons engaged in aquaculture
activities), small and medium-sized aquaculture enterprises to invest into the creation of valueadded and the development of production and sales; their low profitability; shortage of
specialists and high-skilled staff in the private sector and their emigration abroad; an
underdeveloped target system for applied research; a lack of research institutions; weak
management of some enterprises; poor marketing skills to operate in the EU market; high
electricity costs caused by filling fisheries ponds with water, which increases production costs in
aquaculture enterprises. The currently prevailing species of grown commercial fish, carps, have a
relatively limited geography of consumption; therefore, growing fish that is considered more
valuable and is on a greater demand in the market (trout, eels, catfish, sturgeon and other) has
been becoming more popular in Lithuanian aquaculture farms.
Problems faced by the fishery product processing subsector include limited financial
possibilities of the majority of micro, small and medium-sized aquaculture enterprises to invest
into the creation of value-added and the development of production and sales; their low
profitability; underdeveloped processing of small pelagic fish caught in the Baltic Sea and
production of fish preserves, as well as marketing; a lack of fresh quality raw materials in
processing enterprises; poor management of certain enterprises; insufficient marketing skills to
operate in the EU market; insufficiently coordinated and associated small producers are not
always able to adequately represent their interests and compete in the international market.
The key challenges in future will be a better use of the entrepreneurship and creativity potential
of the country’s population in promoting the establishment and sustainability of SMEs. At the
same time, it is necessary to strengthen the competitiveness of operating enterprises in
Lithuanian and European markets through increased labour efficiency and productivity, as well
as the use of market niches and the promotion of innovation.
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1.1.2.2.3. Sustainable and efficient use of natural resources
A considerable progress has been made in Lithuania in environmental protection. The
quality of ambient air and surface water constantly is improving, however, the public is not wellaware of sustainable development principles yet, and they are not consistently implemented
either. Lithuania falls behind the EU average by the headline indicator of sustainable
consumption and production—resource productivity—set forth in the EU Strategy for
Sustainable Development (in 2010, this indicator in Lithuania amounted to EUR 0.57/kg, and the
EU average was EUR 1.64/kg). Moreover, the value of this indicator has hardly changed in
Lithuania in the last decade, whereas the EU average has been constantly climbing up. During
the period of rapid economic growth, GDP grew relatively faster (by a fourth) than greenhouse
gas emissions and at that time a conclusion could be drawn that the economy developed
sustainably. When the economic crisis started, GDP and greenhouse gas emissions dropped in
parallel. However, when the economy started showing some signs of recovery, in 2010 GDP
grew by 3.5% and greenhouse gas emissions even by 17.7%. This shows that a lot of efforts will
be required to bring back the economy to the path of sustainable development.
After the analysis of sustainability in individual economic sectors, it should be stated
that they are developed in a traditional way with regard to the use of resources, and
environmental restrictions in the context of economic growth are understood by economic
entities as problems rather than part of a possible solution. Insufficient investments by
enterprises in the sustainable use of resources are typical of Lithuania.
Lithuania is still behind the EU average in terms of civic environmental activism and
green personal behaviour. The population’s attitude to the sustainable use of natural resources is
changing slower than the development of new infrastructure (for example, a survey performed
by the Eurobarometer in 2007 revealed that the Lithuanian population bought green products or
avoided using disposable items half as often as the EU population (on average)).
Sustainable development is also limited by insufficient human resources efficiency. It is
far behind the EU average. Rural population is not well-aware of the fact that the sustainable
functioning of ecosystems depends on resource efficiency in agriculture and forestry.
The promotion of sustainable and efficient use of resources results in clean and healthy
natural environment, biodiversity and contributes to the implementation of ambitious targets set
by the EU environmental policy, as well as to the implementation of the EUSBSR objective
‘Save the Sea’ and environmentally sustainable development of the Baltic Sea Region.
Lithuania has over 16,000 immovable cultural values, but only a small share of them is
adequately researched, renovated and adapted for use. There is a risk that part of this heritage
may completely deteriorate. Local heritage objects are poorly known and thus are not used for
tourism. National parks are consistently implementing measures for their adaptation to visiting;
however, the shortage of footpaths and cycling lanes, water trails, observation towers and points
is still evident. In the 2007-2013 programming period, investments into the revival of cultural
heritage were planned with regard to tourism needs, sometimes without considering the value of
cultural heritage items, possibilities for using the items being restored for social and educational
needs: heritage restoration projects were systemically implemented only under tourism measures.
The experience gained in the 2007-2013 programming period shows that investments in cultural
heritage return to the city’s budget because of increased flows of visitors.
Air quality. Lithuania does not exceed the level of emission of pollutants set in the EU
legislation for 2010 and subsequent years (SO2, NMVOC, NH3, NOx). In 2012, compared to
2005, the level of SO2, NMVOC and NOX, emitted into the ambient air was lower, the level of
emitted NH3 remained almost unchanged, the emission of fine solid particles increased to a small
extent. Although the air quality is gradually improving certain important problems persist:
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Partnership Agreement
pollutants emitted in the cities by local pollution sources – transport, food, energy objects,
including fuel combustion facilities used in households for heating purposes; increased pollution
from thermal power stations after decommissioning of the state enterprise Ignalina Nuclear
Power Plant; Lithuania, similarly to the rest of the EU, was insufficiently regulating pollution
from agricultural (in particular, animal production) activities; pollution of Lithuania’s air basin
with pollutants carried from other regions.
The problem of air pollution with fine solid particles and benzo(a)pyrene persist in
Lithuanian major cities. This problem is of particular relevance in cold seasons due to more
intensive production of thermal energy and the resulting increase of emissions of pollutants into
the air by the energy companies providing centralised heating supply services, and by the heating
facilities of individual houses (the cheapest fuel that is also emitting the highest level of
pollutants is being used), as well as in the spring season when the dirt accumulated during the
winter that has not been timely and efficiently removed is suspended in the air by transport
vehicles or stronger wind.
The main challenge is to reduce air pollution in order to improve the quality of the air and to
mitigate negative implications for human health and the environment.
In the last decade, the quality of water in Lithuanian rivers has greatly improved.
However, the Curonian Lagoon, the coast of the Baltic Sea, around two thirds of the Lithuanian
rivers and around a third of the Lithuanian lakes are still incompliant with the requirements of
good water quality. In 2012, 54% of the bodies of water were in good condition in terms of
criteria of the Water Framework Directive. Non-point-source pollution and point-source
pollution are the main factors of human economic activities affecting the condition of surface
bodies of water. According to the Report of the European Commission of 4 October 2013 on the
implementation of Nitrates Directive in EU-27 Member States in 2008-2011, the concentration
of nitrates in Lithuanian surface and ground waters is among the lowest in the EU. In spite of
this, the need to invest in manure management technologies, including manure storage and
spreading, as well as other measures related to the reduction of water contamination remains in
Lithuania.
Coordinated cooperation with other countries in the Baltic Sea Region would facilitate
more efficient solution of challenges faced in this area, especially in the efforts to improve the
environmental condition of the Baltic Sea, reduce non-point-source and point-source pollution,
ensure good condition of bodies of water and contribute to the implementation of the subobjective ‘Clean water in the sea’ of the EUSBSR objective ‘Save the Sea’, and to implement the
Common Water Policy, directives on use of nitrates and sustainable use of pesticides.
In case of point-source pollution, more than 90% of the collected wastewater is properly
cleaned. This is primarily applicable to agglomerations that are larger than 2,000 population
equivalents. It is still relevant to ensure quality water supply and wastewater management
services in rural areas, i.e. agglomerations that are smaller than 2,000 population equivalents.
Wastewater in small towns and villages, which constitute a small part of all the collected
wastewater, is untreated or treated insufficiently. However, it costs much more to solve this
problem there than in major cities due to a large number of wastewater collection systems. There
are over 1,100 wastewater treatment plants (around 730 household, domestic and industrial
plants, around 370 surface wastewater treatment plants) in Lithuania. The majority of these
facilities are installed in the residential areas with population over 2000 people. In the new
programming period the focus must also include smaller settlements.
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Partnership Agreement
In 2013, the share of the housing connected to a drinking water supply and wastewater
treatment systems accounted for 77% and 69%, respectively. Drinking water losses made up
30% of the amount supplied to the networks in 2011.
Surface (rain) wastewater, which is collected from urban and other polluted territories
(in particular, in the towns with population larger than 10,000) and discharged into surface
bodies of water, has an adverse impact on bodies of water. Only one tenth of the collected
surface wastewater is currently treated. A larger part of the treated wastewater complies with the
standards. Most of the surface wastewater collection systems are outdated. Due to the sprawl of
urban territories and the increase in the quantity of collected surface wastewater, the capacity of
current collection systems is too low and therefore some parts of the cities are flooded after
heavy rains; the renovation and expansion of the surface (rain) wastewater system will hence
allow to improve the quality of surface water bodies and to implement the relevant requirements
of the directive on urban wastewater treatment.
Pollution with hazardous substances, whose sources of discharge into bodies of water
have not been identified and quantities unquantified, remains an acute issue. The impact of this
type of pollution on the changes in the condition of bodies of water has not been investigated
sufficiently yet.
The Curonian Lagoon is the largest internal body of water in Lithuania, which is very
important from an environmental perspective. Its ecosystem is highly dependent on the inflow of
pollutants from river basins with the Nemunas being the major one. After the evaluation of the
monitoring data, it can be stated that the inflow of pollutants to the Curonian Lagoon is gradually
reducing. It can be related to the implementation of environmental measures in agriculture,
industries and, in particular, the renovation of wastewater treatment plants in cities. In 2011, the
inflow of sea water into the Curonian Lagoon was lower than the average of the last decade.
The Baltic Sea is considered to be among the most intensively navigated regions in the
world. Marine transport (vessels and the port) affects all elements of the Baltic Sea environment.
The following are the main risks of pollution posed by navigation: intentional and emergency
spill of oil, other hazardous substances and waste, transfer of alien species of water organisms
through ballast water. Marine transport also significantly contributes to physical disturbance of
the marine environment and underwater noise, as well as pollution with litter. The risk of
pollution is also posed by the search, extraction and transportation of oil and other carbohydrates
performed by the neighbouring countries in the Baltic Sea.
Given the fact that cooperation among the states of the Baltic Sea Region is vitally
important in order to reduce adverse environmental impacts made by marine transport and ensure
monitoring of sea pollution and thus contribute to the implementation of the sub-object ‘Clean
and safe shipping’ of the EUSBSR ‘Save the Sea’.
Groundwater is the main source of drinking water in Lithuania and its resources are
abundant. Currently, only 12% of the Lithuanian groundwater resources are used. The condition
of most groundwater reservoirs in Lithuania is good, with the exception of four reservoirs (of 20)
with the natural risk of mineralised water inflow: the chloride and sulphate concentration
exceeds the threshold limit values allowed for drinking water. A naturally increased
concentration of fluorine is characteristic of groundwater in Western Lithuania, and high levels
of iron are common practically in the entire country. Security zones have been planned around
reservoirs, however, not all of them have been practically set up. Around 77% of the Lithuanian
population are connected to public supply of drinking water.
In the water management sector consistent efforts are made to secure practical
implementation of the cost recovery principle. The possibility to push up operational indicators
of the companies by means of cross-subsidising has been in principle eliminated because water
supply companies are allowed to engage exceptionally in water supply and waste water treatment
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Partnership Agreement
activities. The economic analysis carried on the level of river basin regions shows that cost
recovery principle has been fully implemented in the industrial sector, while the cost recovery
level in relation to supply of water to households varies from 96% in Nemunas basin to 87% in
Lielupė basin. Such situation is to a large extent a consequence of suboptimal corporate
management, delayed implementation of decisions concerning changes of tariffs. The new Law
on Drinking Water Supply and Waste Water Management specifies that the tariffs shall be set
exclusively by the National Control Commission for Prices and Energy for a period of three
years with the reserved possibility to revise them annually. Therefore, in the new programming
period efforts will be made to improve the management of water supply companies, to increase
the efficiency of their operations in order to secure the cost recovery principle established in the
regulatory documents is fully implemented.
The following are the key challenges in the area of water protection: maintaining the potential of
this resource by reducing the contamination of bodies of water and ensuring that all the
country’s population is supplied with drinking water that is compliant with safety and quality
requirements and provided wastewater collection and management services.
Land resources, landscape and biodiversity. Utilised agricultural land takes up the
area of 3.36 million ha (51% of the total area of the country and around 85% of the total area of
agricultural land). The area of utilised agricultural land declared in 2012 was 2.78 million ha.
Although Lithuanian natural resources are favourable for growing and producing various
agricultural products, a number of natural barriers exist. Less-favoured areas account for 42.3%
of the utilised agricultural land (1.4 million ha). From 2007 to 2012, support was provided to
1.12 million ha of less-favoured areas, of which 0.18 ha were in highly disadvantaged areas and
0.94 million ha in less disadvantaged areas. Lithuania has flat and hilly areas. Plains (slopes up
to 2o) account for 48.1% of the utilised agricultural land, wavy surface (2o-5o) 31.6%, hilly
surface (5o-12o) 16.9%, and very hilly surface 3.4%. Thus, a hilly and very hilly surface with
intensive erosion of soil accounts for only 4.14% of the utilised agricultural land and therefore
there is no need for separate soil erosion control measures. In Lithuania, the average annual soil
loss due to water erosion is 0.81 t/ha. Besides, the soil structure in Lithuania is very diverse. It is
particularly diverse in hilly areas. A number of soil types and varieties form even in a small
territory. The territory of Lithuania distinguishes by a specific soil structure, the soil ratio
forming it, the relief and other natural conditions that determine conditions for agricultural
production. A third of the soil is acid due to natural conditions and must be limed periodically.
Liming of acid soil is the key improvement measure for acid soil that allows for growing
productive plants.
Although the overall geohygienic condition of Lithuanian natural soil is good (the soil
of the fields and forests is clean, its chemical features are determined by environmental factors
only), the surface layer of the soil in the cities and territories of individual enterprises within
those cities often exceed the maximum permitted concentrations of pollutants. In Lithuania, the
soil and surface layer in the territories of industrial enterprises and sides of the highways are still
contaminated therefore they have to be cleaned in order to reduce impact on the environment and
human health.
According to the data of the Lithuanian Geology Service under the Ministry of the
Environment, there are more than 11,000 potential point pollution sources in Lithuania. The
inventory of pollution sources of geological environment has revealed that the area of territories
potentially contaminated with chemicals might constitute 280 km or 0.43% of the Lithuanian
territory. About 49% of the contaminated Lithuanian territories are classified as of particularly
high risk, 41% – of high risk. Lithuania also has many exhausted quarries and peatlands which
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need to be re-cultivated by restoring previous use of the land or re-cultivated into ecosystems
more valuable than the previous ones.
Lithuania is located in the area of excessive humidity, the amount of precipitation
exceeds the amount of evaporated water by around 1.48 times. As a result, favourable conditions
for agriculture can be created only by draining soil when excessive humidity is removed and the
water regime in the soil is regulated. According to the Statistics Lithuania, 2.9 million hectares
of land, that is around 90% of the area of utilised agricultural land, are subject to reclamation. It
is notable that the average age of reclamation machinery is around 40 years. Most of it has never
been renovated, resulting in a 57% wear and tear. 222,000 ha of utilised agricultural land is in
extremely poor reclamation condition is (around 7% of the total area of utilised agricultural
land).
Since 2012, State Enterprise State Land Fund has been identifying in a distance manner
the area of temporarily unused land which is not taken care of regularly and gradually
deteriorates in quality. This is done to ensure the proper use of land according to its purpose. In
2013, the area of such land was 193,600 ha and accounted for 5.4% of the total area of utilised
agricultural land. That is why it is important to promote the rational use of land resources by
returning land to farming or converting it into another type of land suitable for alternative
economic activities.
The landscape status of Lithuania is in principle stabile, however, individual types of
the landscape are changing due to different reasons. The most significant changes are related to
the sprawling urbanisation at the peripheries of the major cities replacing agricultural land;
ecologically sensitive territories near water bodies are used for recreation and construction of
residential buildings with increasing intensity. The developments inside the urban territories are
also accelerating, therefore the area of natural or semi-natural territories is shrinking, ecosystems
are fragmentised, the structure of natural landscape is changing. The general plans of the
municipalities identify natural framework territories, which in a broad sense comply with the
green infrastructure concept defined by the EU, however the municipal planning documents lack
more specific identification of the ecosystems and their functions, the need for maintaining or
restoring the green infrastructure has not been specifically assessed, no measures in this area
have been planned.
Natural and semi-natural ecosystems take up more than a third of the Lithuanian
territory. Currently there are about 20.500 species of animals, 1.800 species of plans and 6.100
species of mushrooms in Lithuania, of which 767 species are protected, on a verge of extinction,
rare or rapidly dyeing out. Some of the species strictly protected in Lithuania can be found
merely in 2-3 sites and their conservation requires urgent actions.
Lithuania has built legal and institutional framework for identification, accumulation
and protection of national genetic resources of the plants. Lithuanian science institutions
involved in the conservation of genetic resources of the plants have identified a large number of
species of wild plants growing in Lithuania and plant species created in Lithuania which need to
be preserved due to their actual or potentially valuable features (about 3 300 species and forms),
however, there is a lack of institutional and infrastructural capacity for the conservation works to
be properly completed.
In Lithuania, the assessment of the status of natural habitats with EC significance
conducted in 2013 produced the following findings: out of 54 types of natural habitats found on
the terrestrial part and in the marine environment of the country, the conservation status was
taken as favourable with regard to 19%, poor/ insufficient – with regard to 52%, poor/bad – with
regard to 24%, unknown – with regard to 5% of natural habitats. Out of 106 types of natural
habitats with EU significance found in Lithuania, the conservation status was taken as favourable
with regard to 33%, poor/insufficient – 54%, poor/bad – 4%, unknown – 9% of natural habitats.
To compare with the assessments conducted in 2007, there is a minor positive tendency, however, the
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majority of changes found by the assessments are associated with the use of more accurate inventory data
or monitoring methods.
With the changing of the agricultural traditions certain types of habitats with
Community significance are vanishing as do the species of Community significance or other
protected species associated with these habitats whose status depends on constant non-intensive
farming, for instance, natural or semi-natural grasslands, open wetlands, that get covered with
shrubs and low value forest when not mowed or pastured. In some regions of the country
agricultural technologies have progressed significantly and the farming activities have become
more active to compare with the period before accession to the EU, therefore natural habitats and
the habitats of species face larger impact of pollution, a bigger fragmentation of these habitats is
observed.
High Nature Value (HNV) territories (including Natura 2000 sites) in Lithuania
comprise 1.52 million ha (HNV utilised agricultural areas comprise 0.91 million ha, forests 0.61
million ha) or 23.3 % of the country's territory. The share of the utilised agricultural areas where
High Nature Value farming is being pursued accounts for 20.8% of the total utilised agricultural
areas. In 2012, 58.020 ha of utilised agricultural areas were declared as pursuing HNV farming
the inherent features of which contribute to the conservation of biodiversity or preservation of
the protected species and habitats. HNV farming must be supported more actively to enable the
areas of such farming reach 1/5 of the total UAA area in Lithuania and remain at least in the
level that would help to ensure conservation of the landscape, biodiversity and the balance of
agricultural ecosystems.
The system of protected territories created in Lithuania to preserve landscape and
biodiversity covers 15.7% of the country’s land with a larger part included in the European
ecological network Natura 2000. Natura 2000 territories account for 13% of the country’s total
area, 4.6% of the total area of the utilised agricultural land. In the period 2007-2012, 10.8%
(147,000 ha) of the total area of utilised agricultural land included in the Natura 2000 network
was supported under RDP measures.
The main problems currently faced in relation to conservation of biodiversity are as
follows:
- vanishing of natural habitats and habitats of species, deterioration of their characteristics
and fragmentation caused by exploitation of grown forest, changes in agricultural and forestry
technologies (more intensive operations, expansion of mono-cultural agriculture, replacement of
grasslands with arable land, abandoning of grasslands not suitable for animal production
purposes or planting them with forest), interference with the natural hydrologic regime of forests
and wetlands, rapid expansion of construction, industry and infrastructure, interfering with the
migration paths of the animals, developments on the banks of water bodies, environmental
pollution, irrational consumption of natural resources.
- occupation of the habitats of local species or destruction of the balance in the ecosystems
by the invasive plants and animals (in Lithuania, there area 35 new species spreading which have
been assessed as very dangerous invasive species due to the speed of their growth, ability to
adapt and occupy new habitats and the resulting large negative impact on the economy);
- climate change induces changes in the ranges and habitats of the species, causes new
extreme phenomena and distribution of new hazardous organisms, and is the cause of many other
changes dangerous to the biodiversity;
- society’s consumerist attitude towards the nature. The society is insufficiently informed
about the cumulative impact of the humans on the ecosystems, the benefits produced by the
intact ecosystems and the price of their future losses, therefore the biodiversity is insufficiently
valued by the society.
In addition to these core problems, organisational difficulties in relation to conservation
of the landscape and the biodiversity are also faced: Lithuania does not have a sufficiently
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developed system for monitoring the status of the biodiversity; there is no single institution or
organisation with the national level responsibility for the ongoing gathering, analysis of the
biodiversity data, assessment of impact on the landscape, biodiversity, ecosystems and on their
functions.
An efficient method for the protection of the biodiversity is the establishment of the
protected territories in the most valuable sites and organisation of appropriate activities in these
sites; building and developing of Natura 2000 network; implementing measures for protection of
the natural habitats and species, including measures to increase the society’s awareness about the
importance of conservation of the landscape, the biodiversity, the ecosystems and their functions.
In the framework of support from EAFRD, the activities dealing with the conservation of the
biodiversity should be coordinated with the management of agricultural land and forests
facilitating conservation of natural characteristic (natural, recreational resources, landscape) of
the potential of the country's territory and shaping of a balanced landscape.
The traditional production methods are changing in the agricultural sector, the areas of
certified ecological production are increasing (in 2007-2012 the such areas increased by 28%,
i.e. from 125,457 ha (2007) to 162,700 ha, and accounted for 4.8% of the total area of utilised
agricultural land in 2012). One of the aims of the RDP 2007-2013 was to improve the
environment and the landscape, to stop reduction of biodiversity by securing rational use of the
land resources, supporting sustainable development of agriculture and forestry. The area of the
country supported under the ecologic farming programme increased over the period 2007-2012:
In 2007 it comprised 22.900 ha, in 2012 – as much as 155.600 ha. The areas certified under the
‘Organic Farming Scheme’ of ‘Agro-Environmental Payments’ measure of the RDP in 20122013 comprised 4.100 ha (0.12% of the total area of utilised agricultural area).
In order to mitigate shrinking of biodiversity the ‘Rare Breeds Scheme’ and the
‘Landscape Stewardship Scheme’ covered by the ‘Agro-environmental Payments’ measure were
implemented. The number of animals and poultry of rare breeds in 2007-2012 increased 11
times: in 2008 this number included 676 units, 2012 – 7316 units. The area covered by landscape
stewardship and biodiversity protection activities in 2007-2012 increased by almost 10 times: in
2007 it comprised 12.960 ha, in 2012 – as much as 128.260 ha. The total area supported by the
agro-environmental schemes of the RDP in 2007-2012 comprised 308,000 ha (9.2% of the total
area of the utilised agricultural land).
The Lithuanian farmers and in particular beekeepers are against genetically modified
organisms (GMO). Lithuania is not cultivating genetically modified plants, however there exists
a potential risk of spontaneous spread of the GMOs. Until 2012, there were no unauthorised
GMOs and cases of GMO spreading in the environment in Lithuania, however, people can bring
GMOs from other countries, cultivate and spread them without being aware of that; GMOs may
be released in the environment during the process of their transportation. Lithuania is monitoring
accidental spreads of genetically modified crops, the supply of genetically modified products
into the market is under strict control; however, the nature and the scope of the risk inherent to
using of GMOs is not fully and precisely known yet. Risk assessment criteria must be reviewed
and updated respectively, the potential environmental impact of GMOs must be performed, plans
and methodologies for GMO monitoring must be prepared.
In the fisheries sector, the principle of sustainable development is implemented through
processes that ensure the efficient use of natural resources and the sustainable use of resources:
supporting protection measures aimed at investments into selective fishing methods and
equipment which reduce physical and biological environmental impacts of fishing, ensure the
preservation of landscape and biodiversity, the improvement of their condition, including the
biodiversity of water ecosystems and their functioning.
Forests. In 2012, forest land covered the area of 217,300 ha or 33.3% of the country’s
territory. Over the last ten years, the area of forest land has increased by 53,100 ha and a number
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of new forests were planted in private and state land in the same period (22,500 ha, accounting
for 42% of the increased area of forest land, were afforested).
The resources of forests have been constantly increasing over the recent 50 years. As of
1 January 2012 the total volume of forest stands in all forests amounted to 501 million m3. The
scope of timber cutting below the timber increment level allows for a sufficiently efficient
functioning of the country’s forestry sector, meeting of the balanced timber needs of the
industry, energy sectors and other consumers. Annual scope of timber cutting should continue to
be maintained below the timber increment level in all forests in Lithuania in the future.
The general condition of Lithuanian forests is relatively good. Over two decades, the
share of trees damaged by various factors ranged from 6.7 to 33.3%, and during the last five
years it has been 15.5% on average. It is notable that the number of damaged trees has been
increasing in the recent years and accounted for 21.1% in 2010. Although the general sanitary
forest protection system covering private and state forests is in place in Lithuania, constantly
repeating natural and increasingly more intensive natural disasters related to climate change, as
well as invasions of disease causative agents and pests in forests pose a threat to the preservation
of forest potential. The sanitary condition of stands is quite good due to well-organised sanitary
forest protection, but widely spread pests and diseases sometimes cause a lot of damage.
The network of forest tracks as the core element of forest infrastructure is dense in
Lithuania, however, the status of the tracks is not really suitable for securing stewardship of the
forests. Moreover, there is a lack of suitably constructed forest paths in excessively wet
cultivated forests. Unsuitable or insufficiently developed forestry infrastructure leads to higher
costs of timber production and bigger negative impact on forests and their ecosystems.
Lithuanian forests distinguish by a high natural flammability rate: 40% of all the forests
have a high flammability rate, 23% medium and 37% a low natural flammability rate. Despite
the form of forest ownership, a general national system of fire safety measures covering
monitoring, preventive and fire safety measures has been developed and implemented in the
country’s forests (625 fires broke out on average in the country’s forests every year between
2001 and 2010, 328 ha of forest areas were affected by fires per year on average).
Forestry activities are supported from EAFRD under the RDP 2007-2013. The largest
amount of support was granted for the establishment of the forests; the support was also provided
for increasing of economic value of the private forests, including support for purchasing of the
machinery for preparation of timber biofuel, for the recovery of forestry potential and preventive
measures, non-profit investments in the forests, improvement of forest infrastructure, etc. That
was a significant contribution to the expansion of Lithuanian forestry resources and
improvement of their quality as well as to the increasing of efficiency of the forestry activities.
Forests oriented environmental measures and non-profit investments into forests are supported
from EAFRD under the RDP 2007–2013. In 2007–2013 programming period the measures
supporting the establishment of forests have lead to the establishment of 17.200 ha of forests,
which constitutes 32% of the increase in the forestry land over the recent 10 years. However,
given that there are about 210,000 ha (data of 2011) of land which is not suitable for agricultural
activities or is not productive and with the view to a more rational exploitation of these lands, the
need for establishment of forests and increasing of their economic value will persist in 2014–
2020 as well.
The main objective related to the conservation of the landscape, biodiversity, ecosystems, their
functions and territorial complexes of cultural heritage, will be to balance household and
economic activities of the people with the need to ensure long-term preservation and restoration
of the landscape, biodiversity, ecosystems and their functions. The above will be pursued in line
with sustainable development principles.
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Municipal waste accounts for around 25% of the waste generated in Lithuania. In
2011, 1.24 million tonnes of municipal waste were collected in Lithuania, and taking into
account individually collected municipal packaging waste, around 1.37 million tonnes of
household waste were collected in total (408 kg per capita and 448 kg per capita respectively,
taking into account municipal packaging waste). Around 21% of the municipal waste is sorted
and recycled or otherwise used in Lithuania, and the remaining 79% goes to landfills.
In the recent years, the legal base for waste management has been improved constantly,
a National Waste Prevention Programme was adopted; the Programme promotes sustainable
consumption, reuse of products and preparation of products for reusing. Particular attention in
the Waste Prevention Programme is attached to the raising of public awareness, communication,
qualification enhancement of the system participants. The national Waste Management Plan
2014-2020 was prepared setting strategic waste management goals, objectives and implementing
measures. The application of the principle of the producers’ responsibility was being constantly
tightened, in particular with regard to the management of packaging and product waste generated
in the flow of municipal waste, has been reinforced, legal prerequisites for the improvement of
pricing for municipal waste management services have been created and other important waste
management issues have been solved.
To ensure the strategic waste management goals are achieved, the following economic
instruments are envisaged: to introduce a tax for waste disposed in landfills; to consider the
introduction of a tax for waste processing in mechanical biologic processing facilities and of a
tax for use of waste for energy generation purposes; consider the introduction of a tax on the
using of imported waste and solid recovered fuel produced from that waste; apply differentiated
taxation on the treatment of household waste; and to introduce a system of deposits on recyclable
packages of beverages.
In order to properly meet the requirements of the environmental acquis, challenges
related to management of nuclear waste generated by medicine establishment, industrial and
research centres will also be addressed.
Ten regional waste management systems have been designed in Lithuania. The design
of the regional waste management infrastructure, including equipment for mechanical biological
processing of household waste, large-size waste collection facilities, biodegradable waste
composting facilities, etc., has reached its final stage. However, the share of recycled or
otherwise used municipal waste was growing slowly and started gaining pace only in 2011.
Inefficient application of the ‘polluter pays’ principle and the principle of the producer’s
responsibility to waste management threatens the functioning of the effective waste management
system and the implementation of the tasks set by the EU.
In the 2014-2020 programming period, the key focus in the area of municipal waste management
is on a consistent reduction of the municipal waste dumped in landfills and on the increase in the
amount of recyclable or otherwise used municipal waste. This will be done through the efficient
use of individual waste collection systems and the promotion of on-site waste sorting.
Lithuania saw a rapid growth of energy efficiency over the last decade (from 2000 to
2010). In 2010, the end-use energy intensity in Lithuania was 21.5% lower than in 2000, despite
the economic downturn and a marginal increase in energy intensity during that period.
Despite positive changes in energy intensity, the consumption of energy in Lithuania is
much higher than on average in the EU or respective old EU Member States. Energy intensity is
directly related to energy efficiency because it shows energy consumption per GDP unit. Energy
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Partnership Agreement
intensity amounted to 311.05 kg of oil equivalent per EUR 1,000 in Lithuania in 2010 (the EU
average was 152.08 kg of oil equivalent per EUR 1,000). Compared to other EU Member States,
Lithuania is among the states with the most inefficient energy consumption (energy intensity is
higher only in Slovakia, Romania, Poland, Latvia, Estonia, Czech Republic and Bulgaria). The
above data show that the potential for energy saving is not used in our country. 56 If these
indicators are recalculated by the purchasing power parity method, Lithuania gets closer to the
EU average.
Most possibilities for energy end-use efficiency are available in the sector of buildings
and to a lower extend – in the transport sector. According to the data provided in the First Energy
Efficiency Action Plan, around 40% of the total costs of energy end-use are used by buildings. It
has been established that residential, as well as trade and services sectors feature the highest
energy efficiency potential and account for 80% of the total energy efficiency potential.
66% of the Lithuanian population live in multi-apartment buildings (around 60% of
the multi-apartment buildings were constructed during the last four decades of the last century).
The average designed consumption of thermal energy expressed in kilowatt-hours per one square
meter of the useful area of the premises in these buildings amounts to 160-180 kWh/square
meter, whereas they make up 80-90 kWh/square meter per year in newly constructed buildings
built after 1993. The average consumption of thermal energy in multi-apartment buildings,
constructed in accordance with technical standards in force till 1993, amount to around 5,000
GWh per year (calculations based on the statistical data on thermal energy consumption over the
last three years).
The necessity to improve energy efficiency in buildings is illustrated by the public
spending on compensations for heating of housing, as well as hot and drinking water which
increases every year. In 2012, it amounted to LTL 169.5 million. According to a study, the
comparison of expenses on heating and income received by consumers shows that the Lithuanian
population spend probably the largest share of their income on heating of their housing. The EU
standards stipulate that the population that spends more than 10% of their income on energy
resources are under the energy poverty line. According to the results of surveys, a fairly large
share of Lithuanian households, especially in cities where the majority of housing is supplied
with district heating, spend 30-55% of their income on heating during the heating season.
Average household expenses on heating in Lithuania (like in Latvia) are the highest in the EU
and account for 9% of GDP per capita, whereas in Finland and Denmark they are as low as 4%,
in Sweden – 3%.
504 multi-apartment buildings were renovated under the Programme for Renovation
(Modernisation) of Multi-Apartment Buildings for 2005-2012, saving around 40% of thermal
energy on average in renovated buildings. To implement one of the Council’s country-specific
recommendations 2014 on energy efficiency in buildings, the aim is to reduce thermal energy
consumption in multi-apartment buildings constructed under technical construction standards in
force till 1993 by at least 20% by the end of 2020. The NRA 2013 mainly provides for regulatory
measures to address problems that are halting the renovation of the housing sector.
In unrenovated public buildings, the comparative energy end-use ranges from 160 to
300 kWh/m2 per year, depending on the type and purpose of the building.
According to the State Energy Efficiency Report 2012, the calculated amount of energy
end-use efficiency was 1,602.84 GWh by the end of 2012. This corresponds to 3.8% of the
56
Eurostat, energy intensity of the economy, gross inland consumption of energy divided by GDP (kg of oil
equivalent per EUR 1,000)
<http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&plugin=1&language=en&pcode=tsdec360>.
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Partnership Agreement
national indicative energy saving target of 9% set within the scope of Directive 2006/32/EC (the
target is to save 3,797 GWh by 2016). The contribution of the services sector in the achievement
of this target was 13.3% (213 GWh), households – 13.8% (221 GWh), energy – 27.6% (442
GWh). Other savings were made after the assessment of the horizontal energy efficiency
measures implemented.
The monitoring of the EU Structural and Cohesion Funds measures for the 2007-2013
programming period intended for the renovation of public buildings established that after the
implementation of energy efficiency measures in 230 buildings, more than 110 GWh of energy
are saved every year. This accounts for over 40% of the energy used before the implementation
of building renovation measures.
According to the statistics, from 1996 to 2012 heat losses in heating lines reduced more
than twofold (from 32.3% down to 16.1%). Studies on the condition of district heating
transfer networks established that it is technically possible to reduce heat losses in heating lines
from current 16.1% down to 12% in Lithuania, like in Scandinavian countries. It is estimated
that in this case the population would save around LTL 63 million every year, but average
payments for heating would go down only by around LTL 10-15/month in case of a flat with the
area of 60 m2. It is expected to reduce the losses down to 14% using the EU Structural and
Cohesion Funds in the 2014-2020 programming period.
Energy efficiency in enterprises. Industrial enterprises consume 2-3 times more energy
in their production compared to the enterprises of other EU Member States. This directly leads to
a lower competitiveness of enterprises in the market and a higher cost price of their products.
Therefore Lithuania is going to encourage installation of energy generation facilities using RES
energy sources, introduction of new technologies for more efficient use of RES in industrial
companies to meet the internal needs of a single or a few industrial companies without supplying
it into the national energy grids. Consumption of RES will be a direct contribution to increasing
of competitiveness of the Lithuanian industrial enterprises.
Alternative electricity generation initiatives are not very popular with Lithuanian
enterprises due to too high costs of investments in micro-generation and a long payback period.
In the EU, 45% of the enterprises have introduced at least one environmental protection
technology in the last two years, whereas in Lithuania the share of such enterprises accounted
only for 34%. Insufficient funds were indicated by 74% of the enterprises as one of greatest
obstacles for the introduction of energy saving technologies, and 70% of the enterprise
representatives stated that the reduction of the use of energy resources was not a priority
objective.57
Following the Directive 2004/8/EC of the European Parliament and of the Council of 11
February 2004 on the promotion of cogeneration based on a useful heat demand in the internal
energy market and amending Directive 92/42/EEC, Lithuania is making efforts to promote
introduction of highly productive (saving at least 10% of primary fuel) cogeneration in industrial
enterprises based on useful heat demand, i.e. producing such amount of electricity that ensures
that the secondary product (heat) is fully consumed, saving primary energy sources, avoiding
losses due to supply via networks and reducing emission of pollutants, in particular GHG and in
the meanwhile contributing to a more efficient use of energy and resources in all sectors of the
economy, including industrial. The planned highly efficient cogeneration of heat and electricity
Eurobarometer, ‘Attitudes of European entrepreneurs towards eco-innovation’. Analytical report, 2011,
<http://ec.europa.eu/public_opinion/flash/fl_315_en.pdf >.
58
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Partnership Agreement
will promote efficiency of energy and resources as well as the competitiveness of the Lithuanian
industry.
As to the agriculture and forestry, during the recent decade (2001-2011) efficiency of
direct energy consumption has been increased. Energy intensity measured by the ratio of energy
input and the Gross Value Added dropped by almost one third (31 percentage points, i.e. from
150.5 to 103.7 kgne/1000 EU) and in 2011 was by 18% smaller compared to EU-27 average.
Even larger progress with regard to increase of efficiency of direct energy consumption over the
recent decade has been achieved in Lithuanian food industry (production of food, beverages and
tobacco). Over 2001-2011 energy intensity fell by 47 percentage points (i.e. from 271.7 to 143.9
kgne/1000 EU); the progress was much bigger than that achieved by the EU-27 where the
reduction over the same period accounted for 23%.
In the 2014-2020 programming period, the key challenge will be to boost energy efficiency in
fighting against energy poverty. To this end, final energy saving reserves in the public and
housing sectors must be fully used and measures that have already proved to be working and
new advanced measures must be applied.
The development of RES will limit relative environmental pollution and increase
energy security. The target of the National Energy Independence Strategy is to achieve that by
2020 the share of RES in the final energy consumption is at least 23%. The share of district
heating generated from RES (biofuel) should be increased at least up to 60% in individual
sectors; the share of electricity generated from RES (compared to total electricity costs) should
be increased up to 20%.; in the transport sector, 10% of fuel should be produced from RES.
Currently, the share of RES in final energy consumption accounts for 21.72%. In the
district heating sector RES in 2012 accounted for about 26% in the balance of fuel for heat
generation. Expensive imported natural gas still constitutes the largest share (nearly 70%).
Nearly 50% of the district heating is consumed by Vilnius and Kaunas. Nevertheless, the share
of RES in the heating fuel balance is very small in these cities (14% in Vilnius and merely 4 % in
Kaunas). Imported natural gas which is more than 2.5 times more expensive than local biofuel
constitutes the largest share in the balance. To deal with this problem, the Government has set an
ambitious target of replacing a large share of the centrally supplied imported gas that is used for
heat generation with local biofuel.
The largest share of this energy is generated from biomass which will remain the major
RES in future. However, the potential of biomass is not fully used in Lithuania.
Although the demand for local renewable fuel in Lithuania is growing, the use of the
timber cutting waste for the production of biofuel is not entirely efficient. Lithuanian forests
store about 80% of the total biomass. Given the requirements for ensuring of biodiversity and
environmental protection as well as the technological aspects, energy generation could
potentially consume up to 750,000 m3 of timber cutting waste per year. For the time being, only
a smaller part of that amount is consumed (for instance, in 2012 forest directorates have sold
only about 169,000 m3 of timber cutting waste). During the 2007-2013 programming period
support was provided for the construction of timber grain facilities the installed capacity of
which will reach 150,000 tons per year, however, only about 20% of timber cutting waste can be
used for the production of timber grain.
Based on expert judgement, about 0.5–0.7 million tons of straw can also be used for the
production of biofuel. Using the support from the RDP 2007-2013 measures, by the end of the
current programming period straw grains production facilities with installed capacity of up to
200,000 tons, are going to be constructed in rural areas, i.e. only about 30% of straw potential
will be used for the production of biofuel.
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The successful development of biofuel energy is related to a consistent growth of two
sectors: consumption of biofuel to generate heat and electricity and the promotion of biofuel
supply. Whereas the development of biofuel consumption market (construction and expansion of
new biofuel boilers and cogeneration power plans) to a large extent depends on the EU structural
support of 2007-2013 and the planned funding from 2014-2020 ESI funds, in the supply side of
local biofuel, biofuel producers face difficulties in relation to acquisition of facilities for
collection, mobilisation, production of biofuel and improving of warehousing capacities. To
avoid potential adverse impact on the environment, biofuel development in energy sector will be
pursued in a sustainable and balanced way.
Another problem – inefficient consumption of biomass for generation of heat in
households not connected to the centralized heating system. Replacement of old boilers with new
individual boilers would enable to reduce the currently consumed amount of biofuel by 40%.
Lithuania is exploiting a relatively old power distribution network which was created
and developed having a different market structure in mind (centralised power generation,
competition-free environment, limited possibilities for the consumers). To tackle the problem of
distributed manufacturing, in particular mainstreaming of a large amount of RES into low and
medium voltage power distribution networks, smart energy grid technologies will be installed.
As to agricultural sector, the largest amount of energy can be generated from biogas,
however this potential is not sufficiently exploited either. In 2013, there were only 5 biogas
power stations operating in the agricultural sector, only one of them was functioning in an
animal production complex. Total power capacity of these power stations amounts to only 6.5
MW. The country has a big potential for biogas production. The Lithuanian agricultural sector
generates about 13 million tons of manure which might be used for the production of biogas.
Large pig complexes alone (there are 27 pig complexes in Lithuania) generate more than 1.5
million tons of liquid manure per year. The waste biomass could be used to produce about 20
million m3 of biogas; power generation capacity of biogas power plants would amount to about
20 MW, they could generate about 85 GWh of electricity and contribute to the goal identified in
the National Energy Independence Strategy to increase the share of energy generated from
biomass to up to 1940 GWh until 2020. Generation of biogas from animal manure and other
waste of animal origin and organic waste would contribute to the diversification of energy
sources and add to the security, competitiveness and sustainability of energy supply. That would
constitute an additional source of income for the farmers and agricultural companies and would
also help to tackle the problems of environmental pollution.
In the next programming period, the key challenge will be to create technical conditions and
economic incentives for using the natural energy generation potential of the existing RES in
order to ensure a reliable and high-quality energy supply to consumers with minimum costs.
Climate change, which has been increasingly obvious over the recent decades, poses a
threat to the environment, economic activities and economic development. Human economic
activities increase thermal pollution in the atmosphere: a growing concentration of greenhouse
gas (GHG) emissions reinforces the natural greenhouse effect and makes a crucial impact on the
rise in the average global air temperature. Most GHGs are generated by burning fossil fuel in the
processes of industrial and agricultural production; they are also emitted by waste. In the last
decade (2000-2010), CO2 emissions increased, however, Lithuania managed to implement one of
the sustainable development principles – ‘decoupling’: The rate of GDP growth was faster than
the CO2 emission growth and the quantity of the latter per GDP unit reduced by a quarter.
Although Lithuania currently meets requirements of the Kyoto Protocol, it is committed to
ensure that greenhouse gas emissions in Lithuania will increase no more than by 15 % by 2020,
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i.e. during this decade (2011-2020) the growth rate of emissions must be halved compared to the
last decade.
Lithuania’s climate change management policy is shaped and short-term (by 2020),
indicative medium-term (by 2030 and 2040) and long-term (by 2050) goals and objectives with
regard to climate change mitigation and adaptation to climate change consequences are set by the
Strategy for National Climate Change Management Policy. In order to implement the goals and
objectives set in the Strategy, the Government of the Republic of Lithuania approved the InterInstitutional Action Plan (IAP) for the Implementation of the Goals and Objectives of the
Strategy for the National Climate Change Management Policy for 2013-2020. The Strategy and
the IAP stipulate that ministries and other public institutions will integrate the goals and
objectives of climate change mitigation and adaptation set by the Strategy, determine their
implementation measures and ensure close inter-institutional cooperation in drafting the
strategies for the country’s economy sectors (energy, industry, development of residential
territories, agriculture, transport, healthcare, etc.), their implementation plans and programmes.
Out of all Lithuanian regions, the Baltic Sea region is the most sensitive to climate
change due to the projected rise in water levels and flood risks. More frequent hurricane storms
reduce sand resources on the Baltic Sea coast and the coastal zone, as well as erode the shores.
There is a possible risk that extreme natural events, which become more frequent, will require
more costly coastline protection measures. They may also affect the landscape of the coastline
and river valleys in western Lithuania. It is notable that coordinated actions and cooperation
between the countries in the Baltic Sea Region within the framework of EUSBSR would allow
for more efficient protection of the Baltic Sea coast, mitigation of climate change and reduction
of expenses on coastline protection measures.
By contributing to the EU Climate Change Policy and implementing climate change
mitigation measures, it is aimed at reducing GHG emissions, increasing the use of RES and
improving energy efficiency as well as air quality in cities. Lithuania has prepared the National
Risk Analysis intended for the assessment of potential threats. According to the analysis, 11 of
19 potential threats were identified as having high risk, including dangerous climate changeinduced natural events: floods, natural disasters and catastrophic meteorological events
(hurricanes, heavy snowfall, windstorms), droughts, heat, etc. The recent years have seen a trend
of more intense climate change-induced natural disasters, in particular floods (for instance,
floods last longer – in the period 2000-2009 summer floods in the Nemunas lowland used to last
for 1.5-2 months, while in the recent years they last for around 3 months), which results in
increasing pecuniary damages to residents, business and the State, and make an adverse impact
on the security of the population.
Lithuanian rescue services are not sufficiently prepared for extreme natural events.
Specialised equipment and means available at rescue services (for instance, the average
operation of fire engines by state fire and rescue services was 16 years in 2012) do not always
ensure a rapid response to climate change-induced disasters and the elimination of disaster
consequences. Moreover, currently, the population and economic entities are warned and
informed about impending disasters by an outdated audio system (a P-16 system installed more
than 40 years ago) and text messages through the network infrastructure of public mobile
telephone service providers.
Currently, Lithuania does not have enough information and research data on climate
change, its impacts and possible consequences, while the available information is insufficiently
systemised and inaccessible to different interest groups. The Council recommended Lithuania to
reduce specific risks by developing monitoring, identification, early warning and danger alerting
measures, strengthening abilities to manage emergencies, improving crises communication and
investing in respective response resources.
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Agriculture is among the most important sectors determining the increase in
greenhouse gas emissions. In Lithuania, greenhouse gas emissions in agriculture amounted to
4,980 of total net emission per 1,000 tonnes of CO2 equivalent in 2011 (GHG produced in
agricultural production processes is the second largest source of atmospheric thermal pollution in
Lithuania and accounted for 54,6% of the total national amount of GHG in 2011 (EU average –
11 %)). It is therefore purposeful to take measures to stabilise these emissions and ensure their
slower growth. Increasingly intensive livestock farming is a direct source of greenhouse gases. It
also makes an impact indirectly through such factors as reduction of biodiversity, water and air
pollution. The reduction of greenhouse gas emissions caused by livestock farming can be
achieved by the modernisation of livestock farming facilities and appropriate manure
management58.
The reduction of greenhouse effect is significantly affected by forest establishment
measures whereby the area of forests is increased and the amount of CO2 consequently reduced.
The measures of the 2007-2013 programming period supporting forest establishment have been
successfully implemented in Lithuania; it is expected that the support provided under these
measures will lead to the establishment of 17.200 ha of forests.
Climate change causes greater fluctuations in air temperatures, which more often results
in natural events, such as droughts, plant freezing, etc., and outbreaks of plant and animal
diseases destroying over 30% of the farm produce. In the recent years, unfavourable conditions
for winter crops as well as summer downpours and hail have prompted farmers more often to
insure their crops against risks conditioned by meteorological events (for instance, in 2011
compared to 2010, the area of insured plants increased 3.5 times, the number of entities having
insured their crops went up 2.2 times). Damages caused by such events pose a serious threat to
economic activities of agricultural entities and may result in the farmer’s failure to fulfil produce
sales contracts, which in turn may lead to the farmer’s bankruptcy. As risks in agriculture usually
cover a large number of farms, they turn into a systemic risk. The market of agricultural
insurance is not well-developed in the country and therefore it is crucial to encourage farmers to
insure their plants and animals against the consequences of dangerous meteorological events and
outbreaks of diseases more actively.
In the coming years, climate change targets will be related to the appropriate monitoring of high
risk threats identified by the National Risks Analysis (including the risk of climate change) and
timely climate change adaptation and prevention measures.
The achievements of sustainable transport in terms of sustainable development
aspects are to be regarded as positive: the amount of pollution per unit of generated Gross Value
Added in 2010 was by 3.4 times smaller than in 2000. The efficiency of fuel consumption was
improved – the amount of consumed fuel per unit of Gross Value Added generated by the sector
in 2010 was by 35.3% smaller than in 2000.
Nevertheless, the level of automobilisation is still growing, using of public transport
services is falling: comparing the data of 2011 and 2005, the share of people travelling by
personal cars within the travelling structure increased by 12.3 percentage points from 48.1% to
60.4%. This share is the largest in the EU. In Lithuania, travels by bicycles comprise only 0.5%
of the total commuting to work (EU average – 5%). The systems promoting sustainable mobility
58
Recommendations for farmers on adaptation measures for the expected increase of climate extremes, European
Regional Policy Institute, 2011.
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(pedestrian and bicycle transport infrastructure) are poorly developed. Due to unattractive public
transport system the automobilisation level in 2012 reached 541 personal cars per 1000
individuals; in the major cities of the country this number is approaching 600. In the recent five
years (2006-2011), the number of cars increased by 19.87 percentage points.
In the transport sector, problems of pollution and traffic safety are caused by worn out
infrastructure or lack of it, transport congestions (in particular, in the cities), lack of
interoperability between different transport modes, the issue of internalisation of external
transport costs (where national regulation measures are applied to make impact originators
compensate the damage made or losses caused), the car fleet which is one of the oldest in Europe
(official average age of the car fleet in Lithuania is 15 years, in Europe – 8.5 years). Another
consequence of high degree of automobilisation is large number of fatalities caused by traffic
accidents which is one of the highest in EU. Therefore in the 2014–2020 programming period
more attention should be paid to the development of environment-friendly public transport,
increasing of traffic safety and security.
Based on the National Transport Development Programme 2014–2020, in order to
reduce CO2 amount and to promote motorless transport and travelling by foot, the cities with the
population of at least 25,000 and the resorts will be required to prepare sustainable urban
mobility plans (SUMP) which will have to properly reflect the projection of modular distribution
in the long-term perspective, specifics of universal design in transport, policy of traffic safety
and intelligent urban transport systems, and would facilitate systemic planning of transport and
urban mobility policy in line with good EU practices.
Inefficient urban transport systems not matching the needs of modern people,
insufficient quality of suburban transport and low accessibility of transport services for rural
population leads to a very poor attractiveness of the public transport. The majority of public
transport means (2319 out of 2847) are older than 10 years, therefore they are not attractive for
people with higher income and are poorly adapted to the people with mobility disabilities. The
majority of bus fleets are owned by municipalities that have no financial resources to renovate
their fleets. Due to lack of coordination between suburban and urban transport, people living in
suburbs prefer to use personal transport for everyday trips. The number of cars is increasing, the
traffic conditions are deteriorating, the capacity of streets is limited, working hours of
establishments are not flexible, the organisation of traffic is not coordinated – all this leads to
congestions both in central parts of the cities and in the main road transport arteries, in the
peripheries of the cities. Not all major cities of the country have bypasses, therefore flows of
transit personal and freight transport has to cross the cities. Park&Ride systems as well as other
solutions for the integration of intercity and urban transport (interconnection of intercity railways
and buses and connections with urban transport) are insufficiently developed. If the organisation
of the traffic of the public road transport and the status of the public transport is not improved,
there will be no stimulus for the society to change their urban mobility habits and the
consequently increasing road transport flows might significantly worsen the ambient air quality
of Lithuanian cities, increase adverse environmental impact, speed up deterioration of the
conditions on the roads.
Mitigation of adverse environmental impact of the transport can be achieved through
introduction of alternative less polluting transport. However, the current measures promoting
development of alternative and less polluting transport (for instance, electro mobiles) are not
sufficient. To ensure development of electro mobiles, the network of electro mobiles charging
stations needs to be expanded. The cars of the governmental and public sectors must be
consistently replaced with electricity- or alternative fuel - driven transport.
As of the data of 2012, RES energy accounted for only 4,6% of the total energy
consumption by the Lithuanian transport sector. The majority of RES energy consumed in the
transport sector (4.4%) comprised biofuel, the production of which in 2012 amounted to 110
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TNE. Lithuania is providing support to manufacturers of biofuel by compensating purchases of
raw materials, while biofuel consumers have to comply with the provisions of the law on excise
duty and tax on environmental pollution. Compared to foreign practices, Lithuania does not have
many transport related taxes the exemptions of which might provide incentives to the biofuel
sector. In Lithuania, only the first generation biofuel is manufactured, the majority of which
(78%) is exported. The second generation biofuel is not manufactured for industrial purposes, i.e.
production of second generation bioethanol and biodiesel is being researched. The gases treated
as second generation biofuel are extracted in landfills, waste treatment plants, agricultural farms.
The biogas extracted in Lithuania is consumed by energy and heating sectors and is not supplied
to or used by the transport sector. However, it could be used by the public buses in the major
cities that are currently using natural gas.
A study commissioned by the Ministry of Energy of the Republic of Lithuania 59 has
revealed that in the framework of development of the second generation biofuel production, an
optimal solution would be to use lignocellulosic biomass (straw, timber waste, unused grass) as a
raw material and to produce the second generation bioethanol drawing on the experience of and
technologies developed by foreign (Danish and German) pilot plants. The analysis has revealed
that once EC adopts ILUC directive60, the consumption of a larger share of second generation
biofuel will be beneficial because its hare in the total consumption package will be doubled or
even quadruplicated (compared to first generation biofuel). A global tendency is emerging –
promotion of biofuel consumption rather than production, because such support is more efficient.
To this end, the mix of biofuel consumption promotion measures should include different
measures, such as: incentives for biofuel consumption; incentives for purchases of biofuel
equipment and transport means driven by biofuel; consumption of biogas in public buses;
increasing of biofuel supply; raising consumers’ awareness.
The key challenge of the new programming period – to tackle problems in relation to sustainable
transport by mitigating adverse environmental impact of transport systems, increasing traffic
safety and security, encouraging use of public transport, developing systems that promote
sustainable mobility, and ensuring interoperability of different transport modes.
The following sustainable development priorities are also important for Lithuania: the
reduction of danger to human health and public health, its strengthening and maintenance.
Although significant changes have been made in the area of public health and healthcare in the
country in the recent years (longer life expectancy among men and women; increasingly more
focus on modern public health based on cooperation of social partners and its strengthening; the
population receives more information about healthcare and disease prevention, they are more
interested in environmental impacts on health and healthy lifestyle), the analysis of the statistics
on public health in the country shows great demographic, territorial and social inequalities in
health which reveal that the development of economic sectors is insufficiently coordinated with
the requirements on the preservation of a healthy environment, and in certain cases decisions on
the sectoral policy become an additional burden for healthcare.
UAB ‘Smart Continent’, ‘Potential Social-Economic Impact of the EC Proposal for ILUC Directive on the
Lithuanian Biofuel Production Sector and the Analysis of Second Generation Production Potential’. Final report, 14
October, 2013.
http://www.enmin.lt/lt/activity/veiklos_kryptys/atsinaujantys_energijos_saltiniai/ILUC_galutine_ataskaita_su_patai
symais_v02.pdf
60
Directive of the European Commission setting biofuel consumption targets for Member States until 2020.
64
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The key challenge in the new programming period will be to focus efforts of the public sector
and all other sectors on the reduction of adverse impacts of environmental, social and economic
factors on health.
1.1.2.3. Challenges to inclusive growth – promotion of employment and reduction of
poverty and social exclusion through their alignment with social and territorial cohesion
targets
1.1.2.3.1. Promotion of employment
During the economic recession, Lithuania faced a strong increase in unemployment
with the record high unemployment rate of 17.8% in 2011. Although it reduced between 2011
and 2012, it still remains high and above the EU average (in 2012, the Lithuanian unemployment
rate reached 13.3%, the EU-27 average was 10.5%). The situation of unskilled workers and the
disabled in the labour market, as well as their unemployment rates are even worse than the
country’s average. The unemployment rate of low-skilled workers was the second largest in the
EU and reached 36.2% in 2012 (the EU-27 average was 18.6%); the level of integration of the
disabled into the labour market is low – only a few percent of the registered unemployed with
disabilities participate in vocational rehabilitation programmes. The problem of unemployment is
particularly exacerbated by the fact that long-term unemployment and the unemployment rate of
low-skilled workers increased during the economic downturn. More than half of the Lithuanian
unemployed are long-term unemployed, i.e. they look for a job longer than for a year. In 2012,
the long-term unemployment rate was 6.5% in the country (the EU average was 4.5%).
According to the Lithuanian Labour Exchange, there were 195,000 registered unemployed in
Lithuania in 2012. Only every tenth of them returned to work faster than in a month, whereas
even half of all the unemployed were jobless for a year or longer. In 2012, around 41% of the
persons who applied to the Lithuanian Labour Exchange did not have any vocational education.
In 2012, the labour force participation rate reached 72% in Lithuania, i.e. 28% of the
country’s working-age population were unemployed and did not look for a job, while in
individual regions the share of this population was even higher – up to 35%. One of the major
problems is that the qualification and abilities of jobseekers or inactive persons do not meet the
needs of the labour market, and they lack suitable work experience. Difficulties in the labour
market are very often faced by persons with low education, young people (due to limited work
experience), older people and people with disabilities.
According to the data of Statistics Lithuania, the number of people employed in the
agricultural, forestry and fishery sectors was consistently dropping from 2001: In 2001 the sector
employed 209.300, while in 2012 – 98.800 people. The number of the unemployed in rural areas,
including the long-term unemployed who have been jobless for a year and longer, account for
over 50% of the total number of the unemployed. The number of the jobless in rural areas
slightly reduced in the period of 2011-2012 (from 87,600 to 83,200). However, considering a
longer period, since 2000 (the number of the unemployed in rural areas was 74,700) this
indicator increased by 8,500 (2012). In 2007, the number of the unemployed in rural areas
reduced down to 22,700. Thus, comparing 2007 and 2012, the number of the unemployed
increased by 60,500.
The reduction of employment was observed in the fisheries sector between 2006 and
2008 (22%). However, the number of workers in the fishing subsector stabilised over the period
of 2009-2012 and started to grow in aquaculture and fish processing subsectors in particular. On
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Partnership Agreement
the other hand, the trend of skilled workers’ ageing in the Lithuanian fishing fleet has been
observed in recent years. Both the increased number of the employed and the reduction of the
labour force caused by emigration lead to these changes in the labour market.
Expansion of employability opportunities (including improved employability
opportunities for the youth by promoting high quality apprenticeship programmes) will help to
better target active labour market policy measures towards low-skilled or long-term unemployed
people, as highlighted in a Council Recommendation 2014 for Lithuania in relation to
application of active labour market measures.
In 2012, the unemployment rate of youth aged between 15 and 29 in Lithuania was
higher compared to the general unemployment rate. Between 2009 and 2012, the unemployment
rate of young people aged between 15 and 24 was the highest. Nearly every third young person
aged between 15 and 24 is unemployed in Lithuania. Although the unemployment rate of young
people (aged between 15 and 24) in 2012 reduced compared to 2011, it remains rather high and
amounts for 26.4% (the EU average is 22.8%). The unemployment rate of young people aged
between 25 and 29 was lower and made up 14.3%. The participation and employment rate
among the population aged between 55 and 64 in Lithuania exceeds the overall indicator for all
age groups in Lithuania (in 2012, it was 58.8% and 51.8%, respectively). Poor links between the
qualifications of young people and the needs of the labour market, limited experience and skills
due to which the transition from the education system to the labour market often is not smooth
are identified as the major causes for a low youth unemployment rate 61. The situation of certain
individual groups is much worse in the labour market. The participation rate among women aged
between 55 and 65 was only 54.1% in 2012 (65% among men). The employment rate of older
people (aged between 55 and 64) with primary and basic education was merely 20% in 2012
(71.8% with higher education). A lower participation rate of some older people has an impact on
the length of the working life, i.e. one of the indicators of the Europe 2020 Strategy in the area of
employment, which was 34 years in Lithuania in 2012 (the EU average was 35 years).
Following the restructuring of the Lithuanian Labour Exchange in 2010 (leaving 10
of 45 territorial labour exchange units), it is necessary to adapt the infrastructure of territorial
labour exchange units to provide adequate services. In the 2007-2013 programming period,
investments were allocated to the construction, reconstruction and equipment of territorial labour
exchange buildings in 16 cities (Lazdijai, Vilkaviškis, Visaginas, Švenčionys, Kaišiadoriai,
Kelmė, Palanga, Plungė, Varėna, Zarasai, Šalčininkai, Biržai, Joniškis, Kaunas, Mažeikiai ir
Telšiai). Consequently, the access to services improved and conditions were created for
providing better quality services. The Vilnius branch, which is the largest territorial labour
exchange unit in Lithuania in terms of the services provided, was not renovated and is still using
buildings that are not properly adapted to its activities: there are no premises for individual and
confidential meetings with customers or meetings of a larger group, premises are not adapted to
individuals with disabilities. It causes a great discomfort for labour exchange customers and
workers as well as limits opportunities for high-quality services for jobseekers, employers, etc.
A large share of the projects implemented by the Lithuanian Labour Exchange was
aimed at the implementation of active labour market policy (ALMP) measures. Nonetheless, the
scope of ALMP measures was not very broad. According to the statistics published by the
Labour Market Exchange, only one fifth of the unemployed registered within a year are subject
to ALMP measures.
61
Government of the Republic of Lithuania, National Development Programme 2012
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Partnership Agreement
A low level of entrepreneurship and self-employment are among the most important
causes of employment and unemployment problems. In 2012, the employment rate in Lithuania
(among the population aged between 20 and 64) accounted for 68.7%, in rural areas it stood at
60% (the EU average was 68.5%). Current policy measures do not sufficiently promote selfemployment or the establishment of job-creating businesses. Over the last five years, the number
of the self-employed (including those who hire workers) reduced by nearly 32% and 9.1% of the
population was self-employed in 2011 (the EU average was 15%). In 2012, the share of the selfemployed increased and amounted to 9.7%.
Thanks to the Entrepreneurship Promotion Fund established with the ESF funds for
2007-2013 (LTL 50 million (EUR 14.48 million), conditions were created for micro and small
enterprises and natural persons to start business, and for social enterprises to develop business.
As a result of activities of the Entrepreneurship Promotion Fund, i.e. micro credits (up to LTL
86,000 (EUR 24,910) in parallel with training and consultations for persons starting business,
assistance in drafting and implementing business plans, over 500 persons who started business
created over 1,000 jobs and over 3,000 potential entrepreneurs participated in entrepreneurship
training and consultations. In the framework of the EAFRD funded RDP 2007–2013 measures
promoting non-agricultural activities, support was granted to 463 self-employed people by 2014.
The experience from the implementation of the Entrepreneurship Promotion Fund and
the achieved results in 2007-2013 signal the necessity to continue provision of socially oriented
support for business start-ups and the need to continuity the financial instrument in 2014-2020 as
well. In order to encourage people facing difficulties in the labour market to more actively
engage in self-employment activities, a set of aid measures supporting starting up and
development of business in the first stages of operation are needed. Repayable (loans) and nonrepayable support (interest grants, partial compensation of payroll costs, training of
entrepreneurship and consulting) for those who will start business in 2014-2020 will be
financially more significant and will be more oriented to encouraging people facing difficulties
to start and develop their business, and to create new jobs.
The analysis of the labour market and demographic statistics shows the formation of
unfavourable conditions for increasing employment in Lithuania. Nevertheless, it is necessary to
look for insufficiently used opportunities to increase the coverage of customised ALMP
measures, apply new measures promoting self-employment and business start-ups.
1.1.2.3.2. Reduction of poverty and social exclusion
Demographic trends. Net migration in Lithuania increased in particular during the
financial and economic crisis and is one of the biggest in the EU. Compared to 2010 downward
tendencies of migration have been recorded: in 2010 net emigration almost reached the level of
78,000 Lithuania citizens, in 2012 – 21.200 (or 13.7 persons per thousand of people). A larger
problem is the structure of emigration. 79.6% of emigrants were people of 20-64 years of age
claiming that they were unemployed for at least one year recently. Every second Lithuanian
emigrant leaving the country was younger than 30, consequently, Lithuanian emigrants are
among the youngest in the EU and with the highest education. Young emigrants usually return
less frequently. Surveys of young emigrants show that the most important factor which may
encourage their return is probably a better economic situation in the country, capable of offering
adequate employment prospects. Young people account for just one fifth of all returning. The
state’s policy is the weakest factor stimulating emigrants’ return to Lithuania. With the
decreasing birth rate and increasing average life expectancy, the trend of ageing population is
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Partnership Agreement
observed. At the start of 2013, there were 905,200 people aged 55, which is 30.5% of the total
population. In 2012 alone, the number of people of this age increased by 7,700 (0.9%). 62
Polimorbidity is characteristic of older people; the majority of them suffer from chronic noninfectious diseases; most of their mental health deteriorates, and all these factors affect both the
growth in demand for healthcare services and older people’s quality of life, their integration into
the society, capacity for work and independence. In future, adverse impacts of ageing and
demographic consequences may be reinforced by the fact that the share of the country’s
population whose usual activities and active participation in the labour market are restricted by
chronic diseases or long-term health disorders is rather large: 29% of the persons aged 16 or
older had health disorders that lasted at least for six months in 2012, and 25% of the population
aged 16 or older were restricted for at least six months due to a disease or long-term health
disorders.63 The shrinking duration of productive and healthy life is influenced by limited
knowledge about healthy lifestyle (low physical activity of the population (as many as 44% of
the population do not exercise or do sports), bad eating habits64, other factors damaging health
and related to unhealthy lifestyle (excessive alcohol consumption, smoking), insufficient use of
health education, disease prevention services, insufficient availability of specialised healthcare,
and this results in a high morbidity rate and high numbers of early deaths and disabilities caused
by chronic non-infectious diseases (related to the circulatory system, malicious tumours),
traumas and other external causes (the above diseases accounted for 85.1% of the death causes in
201265).
Lithuania is at the bottom among the EU Member States in terms of the headline wellbeing indicator – the average life expectancy (73.98 years in 2012) 66. The mortality rate among
the population aged between 30 and 44 and the working age category (between 15 and 64) is the
highest in the EU67. This shows that Lithuania looses large numbers of the working age
population.
Due to emigration, lower attractiveness of rural areas (the deteriorating social
infrastructure – healthcare, cultural, educational institutions, financial services, etc.) and
migration to major cities, the number of young and working age people declines in rural areas,
therefore, agriculture is already facing shortages of the labour force.
It is forecasted that these trends will lead to longer life expectancy and depopulation in
Lithuania by 18% by 2060. The burden of demographic problems, therefore, will be particularly
felt in the healthcare and social services sectors.
In the context of the ageing population, one of the key challenges is to ensure healthy ageing
among members of the productive society, the older population in particular, in order to reduce
adverse impacts of health conditions on the quality of life, independence and capacity for work,
as well as alternatively prevent from the risk of social exclusion and poverty.
According to the data of a 2012 study on the population’s income and living conditions,
a risk of poverty or social exclusion was experienced by 975,000 of the Lithuanian population
62
Statistics Lithuania, 2012
Population’s income and living conditions 2012, Statistics Lithuania, 2013.
64
51% of the Lithuanian population thinks that they eat unsuitable food (Vilmorus, 2011).
65
‘Lithuanian Health Statistics 2012’, 2013.
66
‘Lithuanian Health Statistics 2012’, 2013.
67
Online access: <http://data.euro.who.int/dmdb/>.
68
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Partnership Agreement
(32.5%). Lithuania was the fifth poorest country in the EU (the EU average is 24.8%) by this
indicator. A particularly high risk of poverty and social exclusion is posed to the most vulnerable
social groups, such as the long-term unemployed, disabled, people with addictive disorders,
Roma community members, persons released from imprisonment institutions, etc. Nevertheless,
Lithuania was among the seven EU Member States that showed a declining trend in the number
of individuals at risk of poverty or social exclusion. The number of social beneficiaries went up
by 3%, from 9.2% in 2010 to 12.6% in 2011. In 2012, the number of the population living in
households with very low work intensity slightly reduced and was 11.3%.
Nearly a third of the Lithuanian population is at risk of poverty, material deprivation or
live in families with unemployed family members. Income of the majority of the above
population is at least 7-8 times lower than the income of a fifth of the most successful society
members. Around 20% of the Lithuanian population live below the poverty line. Despite
numerous investments in this area, this indicator has not significantly changed since 2005.
By status of employment, the following social groups are considered the most
vulnerable in terms of poverty: the unemployed with every second member in the group being at
risk of poverty (53.1%) and other economically inactive persons (29.1%.); by household type –
one adult person with children (42.4%), families with three or more children (33%) and single
persons (26.9%). Although the difference between the poverty rate in urban and rural areas has
decreased since 2005, it remains quite evident: in rural areas the poverty rate is twice as high as
in cities and made up 30.7% in 2011. A gap between the income of the rural and urban
populations narrowed since 2008, but widened again in 2011. The reduction in the difference
was mainly the result of the Common Agricultural Policy (CAP).
The analysis of the statistical at-the-risk-of-poverty rates shows that the problem of
poverty risk posed to children (aged under 18) is of particular relevance to Lithuania. In 2012,
the at-the-risk-of-poverty rate among the population in this age group was 20.8%. Children
living in families at social risk account for 3.8% of all the Lithuanian children, children deprived
of parental care account for 2%. Modern families face a number of problems – parental
occupational engagement is growing, generation solidarity is declining, the culture of mutual
relations is inadequately developed. It is difficult for a harmonious family to develop under such
conditions. As many as 3.7% of the children grow in families at social risk. It is observed that
families with children often are in a more difficult economic situation than people without
children. Families with children can allocate only 5.7% of their household income to education,
recreation and culture, which results in limited possibilities to develop a fully-fledged
personality.
The issue of child poverty is rooted in the family structure, i.e. single-parent families
and large families are at the risk of poverty more often. The majority of the population with
children face the problem of balancing obligations to the family and work. In 2010, only around
15% of the employed Lithuanian population thought that they are provided with possibilities at
work to balance their working hours with family-related circumstances. In 2011, child care was
provided only to 65% of the children from the age of 3 to the mandatory school age in Lithuania.
Social services are still unevenly developed in different municipalities of Lithuania.
The level of social services in some of the municipalities does not meet the social services
development standards adopted in 2007. The investments of the 2007-2013 EU structural funds
made a significant contribution to the development of social services, however the demographic
tendencies of the country are further leading to the growth of demand for such services. In the
previous period the main focus was placed on the development of out-patient social services
infrastructure to ensure that people who need certain social services could enjoy them at or near
their homes to a maximum extent and could avoid placement in in-patient establishments. The
EU support was used to expand and modernise the infrastructure of daily social support or social
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care centres, homes of independent living, homes of temporary stay or establishments of mixed
social services for the disabled, old people, families and persons at social risk. The supported
activities included adapting of establishments of in-patient social services providing long-term
social care for the provision of out-patient social services. In addition to that, at the end of the
period a new measure was initiated supporting the development of small establishments
providing long-term care services that are by their nature categorized as community services.
The funding of the measure was used to support small establishments providing care to elderly
people, homes of group living for the disabled, child care homes operating on the basis of a
model similar to a family environment. In 2014–2020 social services infrastructure will be
further developed with the major investments being channelled for transition from institutional
care to community-based services: it is planned to implement pilot projects for transition to
community-based services and to assess their efficiency. In order to move from institutional to
community-based care, it is essential to deal with housing issues. The availability of social
housing is very problematic in Lithuania. At the moment, a small part of the demand for social
housing is satisfied. In 2012, more than 31,000 people (families) were included in lists for
renting social housing. In total, these families accommodated around 70,000 persons. In 2012,
social housing was leased to 1,086 persons (families), i.e. 3% of the people in the waiting lists.
The social housing issue is most acute in the largest cities of Lithuania, i.e. Vilnius, Kaunas and
Klaipėda.
Social activism is also reflected by involvement in the community life. The Lithuanian
society, young people in particular, can be called relatively passive. 34% of the population
participate in activities of local communities. Only 11% of the population are involved in
activities of NGOs and movements, and only 45% of the young people aged between 16 and 24
are active (involved in activities of local organisations or self-government institutions). On the
other hand, a considerable increase in the activity of organisations of rural communities, which is
linked to the successful implementation of the LEADER method, is observed. In the 2007-2013
programming period, the number of local action groups (LAGs) increased twofold, the number
of local development strategies (LDSs) whose application territory covered 99% of the rural
areas in 2007-2013 went up fivefold compared to 2004-2006. The needs of rural communities,
other NGOs and participants in LEADER are related to social and organisational innovation
(social entrepreneurship in particular, which was not widely spread in rural communities by 2014
and was implemented in a fragmented manner), the solution of problems faced by socially
excluded persons, the necessity for community efforts to fight against poverty; the promotion of
non-agricultural and agricultural business; the promotion of the use of RES; the promotion of
environmental protection, including green infrastructure; the preservation of biodiversity; the
increase in the number of community members using IT; the promotion of lifelong learning.
Taking into account the fact that in the 2007-2013 programming period LEADER investments
were focussed on the modernisation of rural areas (70% of the funds allocated to local projects
under the LEADER programme), the renovation of community premises, cultural centres and
other buildings in particular, the target to promote job creation in rural areas, provide the
population with the necessary services is clear in the 2014-2020 programming period. It is
intended to expand this initiative into cities in the coming programming period.
According to the study data68, there are territorial inequalities in the availability of
healthcare. In 2012, most of the country’s population older than 16 who did not receive medical
advice or treatment when necessary stated long periods of waiting for medical services as the
68
Population’s income and living conditions 2012, Statistics Lithuania, 2013.
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Partnership Agreement
main reason (48%). Every third (36%) rural resident who did not use the required medical advice
hoped that the condition will disappear by itself. The failure to afford the service was more often
indicated as the reason by small town and rural residents, as well as persons from quintile groups
of the population with the lowest income. The study data also show that the population with low
income find it difficult to afford dental care and sanatorium treatment services. It has been
established that it is more complicated and it takes longer for children residing in certain regions
(municipalities) to receive the required high quality preventive, out-patient and in-patient
services than for children living in the country’s major cities. Differences in the use of healthcare
services are undoubtedly influenced by uneven distribution of healthcare professionals, in some
areas shortage of physicians in specific fields is increased by mobility both within the country
and within the EU Member States. The largest share of physicians, over 73%, works in cities,
whereas in districts 60% of the district population are provided with the required healthcare
services.69 Uneven distribution of general practitioners (GPs) in municipalities results in different
availability of healthcare services provided by these healthcare professionals to the population in
different municipalities, uneven population’s enrolment, uneven work loads for GPs, longer
queues. According to a study, there are significant inequalities in the distribution of specialist
physicians and the number of specialised out-patient consultations in municipalities70. The
number of nurses is reducing compared with the EU average – there were 793.6 nurses per
100,000 population in Lithuania in 2012, whereas the EU average was 835.5 nurses. Uneven
distribution of nurses has been established in municipalities. Rapid ageing of physicians which
will result in high retirement by 2025 is also observed in the country.
Studies show that economically inactive people with low income and social status
experience psychological and social security-related problems, have less favourable opportunities
for developing healthy lifestyle habits and health improvement, as well as are exposed to a
higher risk of diseases and early death71. In 2012, the majority of the people at risk of poverty
and in social exclusion (40.7%) lived in rural areas, and 30% in urban areas (except for the
largest cities).72 The standardised mortality rate among the rural population was 1.2 times higher
than among the urban population in 201273, and the average life expectancy was 2.9 years shorter
than in the urban population.74 In 2012, the population of urban municipalities had doctor
appointments more often (10.2 appointments per capita) than residents of district municipalities
(6.2 appointments per capita).75 In public surveys, the population of rural and district
municipalities evaluate their health much worse than the population of major cities. 76 This is
particularly relevant in the periphery of Lithuania which is the most remote from the major cities
and territories located at the country’s major highways, etc., where the standardised mortality
rate (SMR) by basic death causes (circulatory system disorders, malicious tumours and external
death causes) significantly exceeds the Lithuanian average, for instance, in 2012 SMR related to
circulatory system disorders was higher than the Lithuanian average by more 20% in 24
municipalities.
Lithuania’s Healthcare Programme for 2014-2020, online:
Online access: http://www.sam.lt/go.php/lit/Medicinos-personalo-skaiciaus-poreikio-ir-darbo-kruvio-pilotinesdienos-fotografijos-analize-placiau/1185
71
Jasilionis, D., Stankūnienė, V., ‘Social and Economic Mortality Differences in the Lithuanian Population’, 2011.
72
Population’s income and living conditions 2012, Statistics Lithuania, 2013.
73
‘Death Causes 2012’, Health Information Centre of the Institute of Hygiene, 2013.
74
‘Lithuanian Health Statistics 2012’, Health Information Centre of the Institute of Hygiene, 2013.
75
‘Health of the Lithuanian Population and Activities of Healthcare Institutions 2012’, Health Information Centre of
the Institute of Hygiene, 2013.
76
Population’s income and living conditions 2012, Statistics Lithuania, 2013.
71
69
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Partnership Agreement
The tuberculosis morbidity rate which is related to social issues (unemployment,
poverty, alcohol and drug abuse, etc.) is high and its prevalence is also caused by psychological
reasons (reluctance to be treated, violations of the treatment regime), insufficient prevention and
late diagnosis. In the recent years, increasing numbers of persons with a good social status and
even children have been diagnosed with tuberculosis.
Support from the EU Structural and Cohesion Funds in the 2007-2013 programming
period has induced fairly obvious positive changes in the quality and availability of certain
healthcare services in Lithuania, creating the infrastructure of trauma centres; providing
healthcare institutions that offer comprehensive cancer assistance with facilities for early
diagnosis and efficient treatment, developing a network of mental healthcare institutions,
providing the necessary equipment for cardiovascular diseases and renovating premises for highquality provision of services by covering three service provision levels. That being said, the
focus should remain on the efforts to reduce morbidity and early mortality rates related to major
non-infectious diseases as these rates are still among the highest in the EU. They are conditioned
by large inequalities in health and healthcare availability among the country’s regions and
different social and economic groups.
Better availability and quality of healthcare services through a special focus on the
preservation of the population’s health, disease prevention and early diagnosis, the optimisation
of the healthcare system by focusing and reorganising it remain the most important challenges
for Lithuania. They must be addressed to minimise the existing large health gap between the
population living in municipalities of major cities and the population in district municipalities,
between the population with high stable income and the population with irregular and low
income, between the population living in a family and single persons.
In 2014, the Council published a recommendation for Lithuania stating that Lithuania
should increase work incentives and strengthen the links between cash social assistance reform
and activation measures, in particular for the most vulnerable. Lithuania has committed in the
NRP to reduce the poverty risk level from 984,000 persons (2008) to 814,000 persons (2020).
Unemployment and low pay are the main reasons for poverty in Lithuania. However,
this phenomenon is also preconditioned by such factors as deficiencies in the social security
system, availability and quality of public social services, social business, availability of housing,
inefficient healthcare system, etc.
To deal with the poverty issue, efforts will be made to ensure the compatibility and synergy of
economic, ALMP and social inclusion measures, as well as equal availability of adequate social
and healthcare services to all residents, in particular by promoting a shift towards communitybased services.
1.1.2.3.3. Territorial development
Great differences in the level of territorial development in Lithuania are determined by a
wide gap between the capital and other regions in terms of a number of social, economic and
demographic indicators. The average differences in GDP per capita among regions have slightly
reduced in the recent years (by 2.5% since 2007), but still remain considerable. This rate exceeds
country’s average 1.5 times in the Vilnius County.
In Lithuania, rural areas refer to villages, towns and cities with the population below
6,000 (except for municipal centres). Rural areas comprise 97% of Lithuania's territory or 63.300
km2. They host one third of all the population of the country. The density of population in rural
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areas accounts for just one third of average national level and comprise 15.7 persons/km2 (in EU27, the average density of population is 51 persons/km2).
Depopulation is the major challenge faced by territorial development. Over the recent
years, Lithuania has been among the fastest ageing EU Member States from a demographic
perspective. Negative demographic processes are fastest in small and medium-sized cities.
Between 2007 and 2012, the depopulation rate in the category of small and medium-sized cities
reached 13.3% and where these cities are situated 50 km and further away from the major cities
– 13.8%. During the same period, the rural population decreased by 11.2%, and the population in
large cities by 9.7%. Depopulation increases relative maintenance costs of small urban
infrastructure and reduces the number of available public services. A considerable industrial
potential focused in cities is lost with the decreasing numbers of the population with required
qualifications.
Although the population is contracting in the entire country, this process progresses
most rapidly in urban areas:77 the urban population reduced by 14.3% from the 2001 population
census to 2013, whereas the rural population went down by 9.5%. A slightly better demographic
situation is observed in the capital city of Vilnius, where the population went down by only
around 3% (mainly due to migration and a relatively higher birth rate). Quite a few industrial
enterprises which loose their competitiveness due to the reduction of the population with the
required qualifications are concentrated in and around small and medium-sized cities, whereas
the labour-intensive services sector is underdeveloped in the territory of the entire country,
except for resorts and major cities. In the major cities and resort municipalities, 70.4% of the
employed works in the trade and services sectors78 (in Vilnius – 77%), while in the rest of the
country’s territory – only 52.3%.
Narrow specialisation, high dependence on specific sectors and enterprises is
characteristic of the labour market in smaller municipalities. For instance, 31% of the employees
in enterprises in the Radviliškis District Municipality worked in transport and security
enterprises, in the Vilnius District Municipality this share accounted for 24%. The share of the
employed in the mining and manufacturing industry exceeds 33% in 13 municipalities
(Švenčionys District Municipality – 47%, Kazlų Rūda Municipality – 54%). Construction
prevails in Molėtai and Telšiai District Municipalities, as well as Rietavas Municipality (from 26
to 29%). Therefore, sufficient employment of the population without specific qualifications or
young people is not ensured. Greater diversity of activities, which allows for employment of the
population with a greater range of competences, is available only in major cities and resort
territories. As a result, territories with a high unemployment rate where structural and long-term
unemployment prevails formed in the regions with traditional industry and agriculture, in
particular rural parts. This problem is extremely acute in borderline territories and sparsely
populated regions and becomes more obvious as the cyclical unemployment caused by the
economic downturn shrinks in the entire country.
Due to demographic differences and inconsistencies in labour force resources, economic
activities are concentrated in five major cities. In 2011, five major cities generated 65.5% of the
total value-added created in the country (excluding agricultural production), they had 63.8% of
77
Here and further in the text: small and medium-sized cities include municipal centres and cities with the
population ranging from 6,000 to 100,000 (except for five major cities); five major cities are Vilnius, Kaunas,
Klaipėda, Šiauliai and Panevėžys. Cities with the population under 6,000 and without the status of an administrative
centre are deemed to be rural areas.
78
Here and further in the text: except for agricultural, financial mediation, public administration and defence
activities.
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the SMEs at the start of 2013 and around 40.2% of the country’s population. In 2011, the number
of hired employees in economic entities of the Vilnius City Municipality was higher by 11%
than the number of the working age population in the municipality.
As a result, active commuting areas with a relatively low unemployment rate and a
small number of the long-term unemployed in small and medium-sized cities (with a welldeveloped transport system connecting to the major city) form around Vilnius, Klaipėda and
partially Kaunas, as well as between Šiauliai and Panevėžys.
As the country’s economic potential is concentrated in five major cities, they attract
large migration flows leading to additional social problems. One of them is the foci of social
pathologies and crime emerging in unattractive or abandoned parts (neighbourhoods) of the
major cities which have significant implications for the urban environment as a whole and make
these territories unattractive for living, visiting or investing. 35% of all the young unemployed
registered in the country reside in these cities. Another evident process is linked with active
migration towards suburban territories – the deformation of compact urban structures.
Territories located at centre of the major cities (within the radius from 5 to 7 km) lose
their population even more rapidly than the majority of small and medium-sized cities. Attractive
residential territories are more often concentrated in urban outskirts, i.e. 15-20 kilometres away
form the city centre; new economic activities also concentrate and new SMEs are established
there. However, such development has an adverse environmental impact as built-up territories
expand and the transport infrastructure is developed, while the population is shrinking. Using
already urbanised territories for urban development would save 20-40% of the land resources
and 15-25% of the transport infrastructure; it would reduce the demand for water supply and
water management facilities by 7-15%.
As city centres become increasingly emptier, the economic potential of built-up
territories with the available network of infrastructure in the central parts of the major cities is
not fully used. The potential of conversion (including liquidation o pollution, cleaning and reuse
of previously polluted territories) available in industrial territories and centres of attraction, as
well as the investment potential of the city centre itself in case of city subcentres, pericentres,
and smaller metropolitan centres, like Panevėžys or Šiauliai, which makes it possible to create
jobs for the population of the city and its surrounding territories, are not used. Using already
existing territories for urban development could minimise adverse environmental impacts and
exploit the existing infrastructure more efficiently.
In particular, the target territories need tackling of economic and social problems by
efficiently exploiting their economic potential as well as their cultural resources. Better quality
and availability of cultural services create conditions for active participation, promote
community engagement and social responsibility, and develop socialisation skills in socially
vulnerable groups and their motivation to integrate into the full social and economic life, thereby
making target territories more attractive for investments, business and job creation. Therefore, it
is important to promote investments that boosts the economic and social viability of the territory,
generates new visitor flows, shapes a demand for local business, boosts the attractiveness for
investments, business development and job creation. It is important to assess maintenance costs
of the infrastructure being created along with the need for investments when performing a costbenefit analysis, as well as economic and social benefits of each investment project.
Demographic, territorial employment and workforce redistribution tendencies, shrinking
cities and urban sprawl, shortages of common local or regional (including both regional centres
and surrounding territories) connections and lack of or inaccessible public transport lead to
communication problems and growing level of automobilisation. Uneven transport flows induce
environmental problems such as environmental pollution, noise around the main urban arteries,
and does not facilitate closer integration of urban and rural territories. There is no clear strategy
or conception available on how to ensure connection between cities and suburbs, rural areas and
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Partnership Agreement
regional centres, no integrated measures are applied to encourage consumers to integrate
different modes of public transport.
The lagging behind of small and medium towns (both physical and economical) and
their low attractiveness is partially due to their insufficient integration into national transport
networks, insufficient exploitation of alternative, different transport modes and their synergy,
impact on business diversification. Significant disparities of accessibility of transport services
deepen social divide and exclude vulnerable groups (for instance, residents of remote rural areas)
from the labour market. This is in particular relevant given the fact that Lithuania (as indicated in
the EC recommendations) ranks fourth in worst social exclusion indictors and worst indicators of
income inequality among the EU Member States. Therefore, promotion of sustainable mobility
and better transport integration might be one of the decisive factors to improve territorial,
economic and social cohesion in Lithuania and to efficiently tackle problems on the regional
level.
In Lithuania, the at-the-risk-of-poverty rate accounted for 28.5% in Lithuanian rural
areas in 2012 and was 2.5 higher than in the major cities. The category of small and mediumsized cities is in a slightly better, yet complicated situation with a 17.9% at-the-poverty-risk rate.
The population facing great material deprivation is increasing in rural areas. If in 2010 the share
of the population facing four of more than nine deprivation elements did not differ much in
urban and rural areas (in urban areas – 19.3%, in rural areas – 19.9%), in 2011 the gap widened
and the population facing great material deprivation in urban areas reduced down to 16.9%, but
went and up to 21.7% in rural areas.
In 2012, the unemployment rate in rural areas was 19.5%, which is 6.3% higher than the
country’s average. The employment situation in rural areas, even located close to the major
cities, is often more complicated than in urban areas. The registered unemployment rate in
bordering rural territories is often 1.5-1.7 times higher than in the city (for instance, in Vilnius
District Municipality, Trakai District Municipality or Šalčininkai District Municipality bordering
Vilnius City, by Kaunas – in Kazlų Rūda Municipality, Jonava District Municipality).
A large share of the employed rural population works in agriculture and forestry. The
diversification of rural economic activities is still insufficient and together with sluggish job
creation leads to a slow employment growth among the rural population.
Due to a lower purchasing power of the rural population and a smaller variety of
available services, most of the expenditure was on basic needs (mainly food – 39.2%) in rural
areas in 2012, whereas in urban areas expenditure in such areas as recreation, culture, education,
was twice as high as in rural areas. For instance, on average, one rural resident spent LTL 26.1
(EUR 7.5) per month or 3.6% of the total income on recreation and culture, LTL 5.1 (EUR 1.5)
per month or 0.7% of the total income on education in 2012.
Some rural areas are subject to large migration flows due to urban development into
outskirts (usually around the major cities). However, such development does not make any
positive impact on the rest of the rural areas, and when new settlements are formed in the
‘middle of nowhere’, the costs for the creation of communications and transport infrastructure
are much higher than they would be when developing the existing villages and cities. A lot of
public and private services are not provided in such settlements either. The differences in the
level of territorial development are partially natural and determined by obvious economic and
social processes characteristic of a number of countries, primarily by the phenomenon of the
capital as the focus of economic and social activities. On the other hand, they also show that
opportunities provided by individual territories are not sufficiently used. Demographic and social
challenges, such as the ageing population and emigration, which are captured on a different scale
in various regions, make it necessary to solve specific problems to ensure at least similar
standards of the living environment and the quality of public services in the entire Lithuanian
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Partnership Agreement
territory. It is crucial to ensure consistent and sustainable regional development, deal with
specific problems of individual residential areas which determine current or emerging
differences in the level of territorial development.
A low level of education and entrepreneurship are among the major causes of
unemployment of the population in remote, usually rural areas. In rural areas, SMEs account for
15% of the total number of SMEs operating in Lithuania. This shows that business is developed
mainly in cities with a larger market, more focus on the development of infrastructure, more
favourable conditions for the development of entrepreneurship than in rural areas, higher
qualification of human resources, greater range and better quality business consultation services.
Besides, faster ageing of the rural population than that of the urban population boosts the
demand for healthcare professionals and other social services in rural areas in particular. Rural
areas lack water management, sewage disposal and waste management infrastructure. The
comparison of urban and rural territories reveal marked differences between wastewater
treatment systems – wastewater treatment services are available to 91% of population in the
major cities and to just 16% of population in rural areas79. It should be noted that Lithuanian
rural areas are rarely populated (density – 15.7 persons/km2) and that more than 63% of the
territories with population less than 1,000 are settlements with less than 50 residents. Moreover,
the absence of quality drinking water supply and wastewater treatment services leads to
contamination of underground water bodies and consequently worsens their ecologic status.
Therefore particular attention should be focused on remoter, rarer populated rural areas where no
drinking water supply and wastewater treatment services are available or where such services are
of poor quality. In order to keep people in rural areas, to revitalise nonviable areas, to ensure
appropriate living conditions and to promote sustainable development, having in mind the low
density of population in rural areas, rural residential areas with less than 200 residents need
investments into installation or renovation of local water supply and wastewater treatment plants
and systems, improvement of water quality, installation or renovation of iron removal systems.
On the other hand, due to residential and recreational attractiveness of rural areas, which
is based on strong community relations, an opportunity to live in the refuge of nature, have a
much larger private space, provide oneself with naturally grown food products, and due to the
change in social values and expanding green movement, a trend to move from the to rural areas,
especially rural areas close to the major cities, has been increasingly more evident in Lithuania in
the recent years. In 2012, 84% of the population that moved to rural areas was former urban
population80. A survey of residents from the major cities shows that as many as a fourth would
like to live in a rural area. Young people’s attitude to life in rural areas is even more positive as
36% of the students and pupils surveyed would like to live there81. To achieve sustainable
regional development in rural areas, it is purposeful to continue the initiatives aimed at the
renovation of rural areas and craft development, as well as LEADER initiatives, promote
activities in the area agricultural and non-agricultural business.
Social problems faced in the fisheries sector, i.e. increasing unemployment, lowering
standard of living, insufficient engagement and motivation of young fishermen, are more
characteristic of coastal communities where no opportunities for fishing business development
have been available due to the requirements for efficient use and capacity reduction. Therefore, it
79
Strategy for the Development of the of Drinking Water Supply and Management of Wastewater 2008-2015, as
approved by the Resolution No 832 of 27 August 2008 of the Government of the Republic of Lithuania.
80
‘Lithuanian Agriculture and Food Economy, 2012’. Lithuanian Institute of Agrarian Economics, 2013.
81
Green Paper: Future of Rural Areas in Lithuanian. Vilnius, 2010.
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Partnership Agreement
is important to promote social cohesion in fisheries areas by focussing on the tackling problems
in coastal communities.
The challenge of the national regional policy is to identify specialised investments that meet the
needs and potential of each territory. Comprehensive and timely implementation of such
investments would ensure the best achievement of objectives and priorities set in the policy
through the use of new implementation mechanisms as per the EU cohesion policy regulations,
as well as the experience gained while implementing LEADER measures in Lithuanian rural
areas.
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1.2. Summary of the ex ante evaluation
The findings of the ex ante evaluation of the Operational Programme for the EU Funds’
Investments in 2014-2020 have served as a basis for proposals and recommendations to drafters
of the programme concerning the key aspects of the EU Structural and Cohesion Funds planning.
Throughout the 2014-2020 programming period, a particular focus will be placed on the
result-oriented approach and the concentration of efforts towards addressing the main challenges
faced by the country. The justification of the thematic objectives provided in the Partnership
Agreement, as well as the analysis of the needs and challenges performed as part of the ex ante
evaluation have revealed that the choice of all the eleven thematic objectives to be pursued in the
context of the Operational Programme for the EU Funds’ Investments in 2014-2020 is well
justified. Although the fragmentation of the policy has raised certain doubts concerning the
choice of the thematic objective on combating climate change, it was concluded that so far
Lithuania has not been providing sufficient attention to this important area. The investments
planned in this area will hence contribute to a consistent shaping of the climate change
adaptation policy as well as the implementation of climate change mitigation measures and
prevention of climate change-related risks. Although priorities and specific objectives of the
Operational Programme for the EU Funds’ Investments in 2014-2020 are in line with the
Common Provisions Regulation and the Partnership Agreement, the Council’s country-specific
recommendations for Lithuania concerning the further implementation of public policy reforms
(state-owned enterprises and pension reform) were not fully taken into consideration at the initial
programming stage. Consequently, one of the recommendations made as part of the ex ante
evaluation was to mainstream the relevant activities into specific objectives of priority 10
‘Advanced public administration meeting the society’s needs’ as defined in the Operational
Programme for the EU Funds’ Investments in 2014-2020.
Despite the right choice of the thematic objectives, the specific objectives of the
Operational Programme for the EU Funds’ Investments in 2014-2020 at the initial investment
planning stage covered most of the investment priorities of the ESF, the European Regional
Development Fund (ERDF) and the Cohesion Fund. To strengthen the result-oriented approach
in the area of the EU Structural Funds, the ex ante evaluation has recommended reducing the
number of the investment priorities selected and identifying clear specific objectives reflecting
the pursued developments. This recommendation was taken into consideration and the number of
the investment objectives of the draft Operational Programme for the EU Funds’ Investments in
2014-2020 was reduced by half, thereby improving the rationale of interventions and creating
pre-conditions to meet the thematic concentration requirement. The reduced number of the
specific objectives and a more detailed rationale of interventions also contributed to a greater
internal and external coherence of the operational programme. The drafters of the Operational
Programme for the EU Funds’ Investments in 2014-2020 took into account the majority of the ex
ante recommendations for drawing a clear line between the investments of a similar type (for
instance, between promoting entrepreneurship, support to SMEs and encouraging selfemployment to promote entrepreneurship) and ensuring the consistency and complementarity of
ESF and ERDF investments that pursue for similar developments (for instance, ESF and ERDF
investments into education and training). The recommendations concerning the compatibility of
the planned investments and possible overlapping with other EU (for instance, RDP 2014-2010,
Horizon 2010, European Networking Facility, etc.) and national programmes intended for
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Partnership Agreement
investments in R&D and innovation, transport and the major network infrastructure,
environmental protection, energy and other areas were aimed at better external coherence of the
Operational Programme for the EU Funds’ Investments in 2014-2020.
The breakdown of financing between the priorities of the Operational Programme for
the EU Funds’ Investments in 2014-2020 is in line with specific objectives and can be expected
to lead to target results. The plans to allocate relatively more financing to research and
innovation, as well as to investments into greater energy efficiency and the promotion and use of
RES production in the 2014-2020 programming period are in line with the Commission’s
position and demonstrate the importance of these Operational Programme priorities to Lithuania.
Another priority investment area is human resources: nearly a third of the total support from the
EU Structural and Cohesion Funds 2014-2020 is planned for education and training, the
promotion of social inclusion and employment. The funding foreseen for the above priority areas
is in line with Lithuania’s commitments to implement smart, sustainable and inclusive strategy
Europe 2020 and achieve the quantitative objectives identified in the NRA. Ambitious goals of
the country to increase the spending on research and innovation more than twice, improve energy
efficiency, significantly reduce the risk of poverty and social exclusion and improve employment
require particular attention to and clear identification of priorities when planning the allocation
of the EU Structural Funds, forms of support and implementation models. Macroeconomic
simulation of impacts of EU Structural and Cohesion Funds performed as part of the ex ante
evaluation has revealed that the planned breakdown of investments between such areas as
research and innovation, human resources and infrastructure, etc. is quite optimal. The
simulation has led to a conclusion that the greatest return to Lithuania is expected to come from
the EU Structural and Cohesion Funds directed towards research and innovation. However, to
use support of the EU Structural and Cohesion Funds efficiently, recommendations for a wider
use of financial instruments in promoting R&D and innovation, supporting entrepreneurship and
business development, as well as considering an opportunity to apply financial instruments in
water supply and wastewater treatment infrastructure projects have been provided as part of the
ex ante evaluation. Forms of support other than non-refundable grants (refundable grants, prizes)
were recommended for the promotion of some investments in R&D and education infrastructure.
The ex ante evaluation has revealed that the identification of output and result indicators
for the purpose of the Operational Programme for the EU Funds’ Investments in 2014-2020 is in
line with the Commission’s guidelines: general indicators are used and a limited number of
specific indicators is set. Following the analysis of the monitoring indicators proposed, it was
recommended to use all appropriate general indicators and clarify specific indicators so that they
are clearly understandable and properly reflect the nature of interventions. The fact that the
experience gained or assessments conducted in the period of 2007-2013 were used for the
identification of output indicator values to calculate the ratio between the funds allocated and the
products developed in the draft operational programme was viewed positively. On the other
hand, the values of assessment criteria set in the national strategic documents were used for the
identification of result indicators in ERDF and Cohesion Fund intervention areas, therefore, a
gap between the values of output indicators planned for a specific objective and the expected
results is observed in individual cases. This shows that the achievement of result indicators
planned in the draft operational programme will also be influenced by other factors, such as
changes in regulation, demographic trends and the economic situation. Therefore,
recommendations specifying what actions under other priorities and external factors will
contribute to the expected result in the descriptions of specific objectives set in the operational
programme have been provided as part of the ex ante evaluation.
The evaluation of the efficiency of the administration system for the EU Structural and
Cohesion Funds 2007-2013 has showed that the existing administration system and its
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participants’ competences should be maintained in the new programming period by developing
the partnership between participants of the management and control system (MCS) and
specialised institutions, making administration practices uniform and including new institutions
into the MCS only after their administrative competences are assessed in advance. The measures
provided for in the Partnership Agreement and intended for the reduction of the administrative
burden for applicants are in line with the recommendations provided as part of the above
evaluation, and the planned technical assistance to the administration of the operational
programme creates preconditions for the implementation of these measures. The analysis of
drafted legal acts performed as part of the ex ante evaluation has also showed that the submitted
Action Plan on the Implementation of the Precondition Concerning Availability and Sufficiency
of Statistical Data creates conditions for the design of an appropriate system for the monitoring
of the Operational Programme for the EU Funds’ Investments and collecting the data required
for the evaluation.
As part of drafting of RDP 2014-2020, ex ante evaluators provided recommendations
the majority of which were taken into consideration. Social-economic, sectoral and
environmental analysis was performed; the assessment of SWOT factors identified on the basis
of that analysis and the basic development needs has revealed that the choice of all six rural
development priorities and many focus areas (16 focus areas identified in the Regulation 9EU)
No 1305/2013 and one additional focus area) in the strategy was justified; RDP does not include
energy and water efficiency focus areas, this choice is justified by the current situation, positive
tendencies and relatively good results in the EU context. Taking into consideration the
importance of data availability and relevance for the initial analysis and further assessments, the
ex ante evaluators have emphasised that publicly available national statistical data by type of
rural residential areas is inconsistent with the scope of rural areas considered in the RDP and
recommended to refer to the typology of rural regions approved by the EC. Nevertheless, the
choice was to use the national statistical data for the purposes of specific context indicators as
better revealing national rural specifics, although not entirely consistent with the scope of rural
areas referred to in the RDP.
The logical framework of the RDP in principle follows-up the measures implemented in
the current period. The major focus and financial weight in the RDP is placed on the objectives
and measures related to increasing of competitiveness (about 40% of support). This is
determined by relative large importance of the sector on the economy and on a large part of the
population and persisting gap of productivity and labour productivity compared with other EU
Member States. This orientation is also in line with the needs of the main social economic
partners. The efforts to focus support by giving priority to animal production, fruit and
vegetables sectors and competitiveness of small and medium farms have been positively
assessed.
Taking into consideration the recommendation of the ex ante evaluators, new activities
(so far not implemented) were included: to increase competitiveness of agricultural activities,
actions were planned to promote introduction of innovations and cooperation between the
science and the producers; to safeguard better opportunities for small and medium farms to
invest and develop products generating higher value added, horizontal and vertical cooperation
of small entities was envisaged. Mandatory minimum 30% funding for environmental measures
has been secured.
Improvement of social situation in rural areas is pursued through priority 6 aimed at
increasing of social inclusion, combating poverty and stimulating economic development.
Although unemployment, poverty and other social problems are very significant in rural areas,
these activities have lesser portion of support earmarked than other objectives (less than 20% of
support). Ex ante evaluators consider this choice to be justified because RDP funding and
instruments for tackling of social problems are rather limited since the main measures address
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promotion of workforce demand, i.e. creating of new jobs in rural areas, and supply of small
scale social services (through LEADER projects). In order to tackle employment and social
exclusion problems in rural areas, compatibility and complementarity with ESI funds and with
national social security policy measures guaranteeing workforce supply, adequate qualification,
provision of the necessary social services, must be ensured.
Taking into consideration the recommendations of the evaluators RDP 2014-2020
provides for a possibility to expand the use of the financial instruments - to apply more diverse
forms of financial instruments and apply them for a wider spectrum of investments (not just for
agricultural activities but for processing of agricultural products and other activities as well).
The assessment of the chosen priorities, focus areas and their financial breakdown set
forth in the RDP 2014-2020 has led to a conclusion that the RDP 2014-2020 will contribute to
the implementation of smart, sustainable and inclusive growth strategy Europe 2020. The largest
portion of support under RDP 2014-2020 will be channelled to the priority dealing with
increasing of competitiveness of agriculture with particular focus on the introduction of
innovations. The RDP 2014-2020 can contribute to one of the quantitative objectives of smart
growth, i.e. increase investments into research and innovations. It is expected that the
investments into increasing of the share of energy generated by RES (through promotion of
production and consumption of biomass and biogas raw materials) and reduction of GHG (by
introducing and applying climate friendly farming methods and forestry measures) will grow.
RDP 2014-2020 may have a rather significant impact on the achievement of inclusive growth
objectives. The possibility to create new farms, develop and expand non-agricultural businesses
will generate new jobs in rural areas which will contribute to higher employment level of the
people. Direct impact on reduction of the number of people facing risk of poverty or exclusion
will be made by local projects based in LEADER approach whereby social enterprises will be
supported and social services will be provided. LEADER measures are likely to make a larger
impact on this objective in 2014-2020 period because they will be oriented towards
implementation of activities rather than infrastructure (which was the main focus on 2007-2013
period).
The ex ante evaluation of the Operational Programme for the Lithuanian Fisheries
Sector 2014-2020 (hereinafter referred to as the ‘Fisheries Operational Programme’) has found
that the measures selected for the Fisheries Operational Programme are oriented towards the
implementation of the EU strategy for smart, sustainable and inclusive growth Europe 2020
through the achievement of the relevant thematic objectives listed in the Common Provisions
Regulation. EU level documents stipulate that investments of the European Maritime and
Fisheries Fund (the EMFF) will pursue increasing of the viability and competitiveness of the
fisheries and aquaculture sectors, support to their environmental sustainability, social cohesion
and job creation in the fishing-dependent communities. Taking into consideration that most of
the specific objectives proposed by the Commission have been chosen for the development of
the fisheries sector in the 2014-2020 programming period, it should be assumed that the thematic
objectives listed in the Common Provisions Regulation along with the targets of the Europe 2020
Strategy are properly reflected at the planning level. It is planned to implement the objective to
renounce discards of unwanted catches and the maximum allowable catch targets set in the
reformed Common Fisheries Policy (the CFP) by using the measures of the Fisheries Operational
Programme determined according to the selected specific objective aimed at the reduction of the
impact of fisheries on marine and internal waters environment.
The strategic target of the Lithuanian fisheries sector in relation to climate change
mitigation and adaptation is to reduce the vulnerability of natural ecosystems and the country’s
fisheries sector. This target will be implemented through the introduction of measures which
allow for the preservation and increasing of resilience to climate change-induced developments
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and ensuring favourable conditions for the society’s life and economic activities, as well as the
promotion of support to the shift towards low-carbon technologies in the fisheries sector.
The ex ante evaluation has come to a conclusion that the identified areas of
development in the fisheries sector, the objectives and the measures for their implementation
chosen in the Fisheries Operational Programme are suitable and in line with the national and EU
strategic agenda for the fisheries sector. The selected areas of development and measures are in
line with the SWOT analysis of the fisheries sector, as well as with the needs identified as part of
that analysis and are directed towards addressing the main problems and challenges in the sector.
Although the measures selected are suitable in terms of the needs and challenges of the
fisheries sector, the number of these measures is relatively large and may complicate their
implementation and increase the implementation costs. Since financing with regard to some of
the measures will not comprise a relatively large share and the number of applicants is low, it is
necessary to consider joining similar measures into groups, for instance, by investment theme,
sector or type. Such an approach would make the administration of the measures easier and
would allow for the reduction of the administration costs. That would help to achieve greater
clarity of the measures and their targets, as well as help potential applicants to better understand
them.
To ensure proper planning and efficient monitoring of the Fisheries Operational
Programme during its implementation, it has been emphasised that a rational and realistic
framework of result indicators with regard to the programme objectives and target values to be
achieved has to be ensured taking into consideration the evaluation of the achievements of the
Lithuanian Fisheries Operational Programme for the 2007-2013 programming period and proper
assessment of the kick-off situation. It is also important to consider possibilities to ensure the
measurability of the indicators selected, therefore, the ex ante evaluator recommends developing
the methodology for the calculation of the result indicators.
The financial resources of the Fisheries Operational Programme 2014-2020 have been
allocated on the basis of investment proportions of the 2007-2013 programming period by
sectoral areas. As seen from the problem analysis and the comparison of two programming
periods made by the evaluators, the basic problems and challenges of the fisheries sector in
2014-2020 will mainly remain the same as in the 2007-2013 programming period and therefore a
similar breakdown of financial resources is seen as reasonable. Minor changes in the proportions
of the financial resources have resulted from changes in the sector’s strategic agenda. A larger
share, compared to the previous period, has been earmarked for the priority addressing
employment and territorial cohesion in fisheries areas. The above approach hence takes into
consideration the importance and involvement of communities as emphasised by the EU.
Another important aspect emphasised by the EU that should be supported with larger financial
resources is the promotion of sectoral innovation. The promotion of innovation is stressed both
in the context of the EMFF and the overall EU strategic agenda. The Fisheries Operational
Programme envisages granting the largest share of the financial resources for the purpose of
Union priorities whose measures are aimed at the promotion of innovative and sustainable
fisheries and aquaculture. Based on the list of the measures to be implemented, the investments
planned will be directed towards the implementation of new, innovative solutions with part of
the investments made in traditional solutions. The implementation stage should include
additional mechanisms to ensure the implementation of innovative elements.
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1.3. Summary of the results of each thematic objective in respect of each fund
Lithuania’s main investment priority areas in the 2014-2020 programming period have
been established to address major structural socio-economic challenges identified in Section 1.1
of the Partnership Agreement. This section elaborates on how these investment priorities will be
implemented through thematic objectives, presents arguments for the selection of the thematic
objectives and defines the expected results.
1.3.1. Strengthening research, technological development and innovation
This thematic objective is relevant in respect of the commitment according to which the
R&D expenditure in Lithuania should account for at least 1.9% GDP by 2020. Accordingly, the
result to be achieved by this thematic objective is to significantly increase business investment
in R&D and innovation because the share of business investment in R&D compared to other
sources of funding was disproportionately low (in 2012 it accounted for 26.6% of the total R&D
expenditure) and is not growing. A breakthrough is needed to prompt the change by pooling the
potential of the scientific sector and strengthening research capacities in areas relevant to the
needs of the economy and the society, by enhancing the spread of knowledge and technology
and by putting a strong emphasis on stronger business innovation and active support for
commercialisation of science-business cooperation results. Moreover, investments in the
effectiveness and added-value of R&D should be boosted. Such effect could be achieved through
active synergies of the EU Programme for Research Horizon 2020, the integration into the
international research infrastructure and advantages of cooperation with international partners,
optimising the R&D system (creating a favourable legal framework for innovation and to reform
the institutional structure). Investments based on this thematic objective will be made only in
accordance with the smart specialisation strategy.
This thematic objective is also relevant in respect of the goal envisaged in the
Lithuania’s Innovation Strategy 2010-2020, i.e. for Lithuania’s total innovation index to reach
the EU average by 2020. The result for this objective and for the previous objective, i.e. to
increase total R&D spending, is only possible through a significant progress in the promotion of
commercialisation of R&D findings, the development of new products (experimental
development) and innovation. For the purpose of implementation of the thematic objectives,
cooperation between business and science should be promoted, the establishment of knowledgeintensive innovative enterprises should be encouraged, knowledge and technology transfer
capacities enhanced and the protection and management of intellectual property improved. In all
these areas Lithuania’s results remain among the poorest.
For the implementation of smart specialisation priorities there are plans to strengthen
cooperation between research and business by means of joint and coordinated efforts and
tools that support joint scientific-business initiatives based on thematic approach and having the
ability to pool the capacity and infrastructure existing in different areas. Such education-business
cooperation initiatives should ensure active engagement of academic and research institutions,
economic operators, and other public and private entities in tackling important socio-economic
problems and joint efforts to overcome the challenges. The desired result for joint academicbusiness initiatives is to create a technology, process, product, or method, and adapt it to the
public needs.
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Along with the update and acquisition of additional scientific equipment,
technological centres and centres of excellence meeting the needs of science-intensive business
and involving the infrastructure for experimental development will be set up. There are plans to
support the development of new products by supporting the development of necessary
infrastructure and experimental development, including the preparation of new products for the
market (standardisation, certification, metrology, validation, etc.). There will be efforts to
activate open access-based R&D infrastructure; commercialisation of results of R&D activities
will be encouraged; incentives for effective public-private and private-private cooperation in
clusters and other innovation networks will be provided. Other plans include strengthening
scientific and technological parks, introducing innovation services, stimulating joint R&D
projects through the use of the existing and further reinforced R&D infrastructure in open-access
centres, putting an emphasis on the commercialisation of R&D findings, the transfer of
knowledge and technologies and the protection of intellectual property rights. Incentives
mitigating the risk of private investments in innovation will be continued. There will also be
targeted measures stimulating the demand for innovation (innovative, pre-commercial
procurement, etc.). The establishment and development of innovative enterprises, incentives for
international cooperation in the field of RDI is promoted with special attention to interregional
cooperation possibilities provided by the EUSBSR.
In addition to the measures listed above, consolidation and optimisation of
infrastructure of research and higher education institutions will be continued taking into
consideration the progress of the smart specialisation process, i.e. higher education infrastructure
will be mobilised in the territories with significant potential for research and knowledge
intensive business (‘valleys’) pursuing strong and uninterrupted synergy between higher
education, research and business.
The following results are expected to be achieved by ERDF investments:
Enhanced capacities of higher education and research institutions to reflect the
economic needs. A share of the Lithuanian enterprises implementing technological innovation
and cooperating with universities will increase from 9.8to 12.8% by 2023. This increase will be
reflected in private sector investments in RDI: the share of R&D expenditure of higher education
and research institutions funded by economic entities is expected to increase from 3.5 to 7%;
revenue of higher education and research institutions received from economic operators and
external users of research infrastructure will increase. This will be achieved through the
activation of R&D infrastructure developed in 2007-2013; funding the modernisation and
development of centres of excellence, centres of development and transfer of technology and
innovation centres, taking care of the commercialisation of RDI results and the provision of RDI
services to the private sector; through support to the acquisition of RDI-related resources;
support to joint R&D activities, the commercialisation of research findings, etc.
Improved engagement in international R&D infrastructures and networks. The
National Programme for the (Social, Cultural) Development of Studies, Research and
Development for 2013-2020 outlines that Lithuania will promote the integration of Lithuania’s
research infrastructures into international research infrastructures by becoming a member of four
international research infrastructures. This will be achieved in line with the Roadmap for
Research Infrastructure in Lithuania and by integrating into the infrastructures of ESFRI that
match Lithuania’s areas of smart specialisation best and are developed at the national and EU
level.
Enhanced capacities and capabilities of higher education and research institutions
to commercialise R&D findings. The creation and development of new products (from the
concept to the entry to the market) may start in higher education and research institutions when
students or researchers and their teams generate R&D-based but business-oriented ideas that are
in line with the market needs and have a great commercial potential. In order to promote the
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generation and development of such R&D-based ideas in higher education and research
institutions, initiatives of those institutions to develop in science-intensive enterprises will be
encouraged and other tools for the development of use of the R&D results will be used.
Enhanced RDI capabilities and innovativeness of businesses. The promotion
measures will enable businesses to channel more investments into RDI, the share of innovative
enterprises deploying new products and non-technological innovations will be increased. To
achieve this, the development of new products in enterprises at all RDI stages will be supported.
The development of RDI infrastructure in enterprises and clusters will be funded, especially the
experimental phase of the development: the layout and prototyping, testing them,
demonstrations, pilot production and preparation for market (certification, standardisation,
metrology and validation). Funding will be provided to the development, protection and
licensing of corporate intellectual property, the promotion of innovation partnerships, the search
for technology, the evaluation and transfer of technology, the setting-up of innovative businesses
and other measures.
New instruments to boost demand for innovation will be developed. The aim is to
strengthen the demand for innovation by introducing innovative public procurement and precommercial public procurement.
New R&D-based innovation deployment networks will be created and the existing
ones reinforced. This will be achieved through funding public-private and private-private
cooperation; the development and upgrading of enabling structures in the field of RDI (for
example, science and technology parks, centres of excellence and technology centres); building
innovation networks (clusters of thematic research and business networks and other
partnerships); support to joint RDI projects using the potential of creative industries and benefits
of intersectoral collaboration.
Enhanced system of support for innovation. In order to raise the number of new
innovative enterprises, the establishment of young innovative enterprises (spin-offs, start-ups)
will be supported, start-ups and young, fast-growing enterprises will be encouraged. There are
plans to support the promotion of technological progress and innovation, the promotion of
innovation partnerships, the search for technology, the evaluation and transfer of technology, the
protection of intellectual property rights, and advice on the development of new products and
entry to the market, etc.
Attracted direct foreign investment (DFI) in areas of smart specialisation. DFI into
smart specialisation will be supported to accelerate the modernisation of the Lithuanian economy
and the spread of non-technological innovation. The development of infrastructure and the
marketing of free economic areas and industrial parks will also be supported.
The following results are expected to be achieved by EAFRD investments:
Taking into account priority 1 of the EU rural development policy82, closer links
between business and science will be promoted and efforts to ensure their durability and better
commercialisation of research findings made. Support will be focused on the dissemination of
research findings and the promotion of private investments into experimental (technological)
development and innovation. Cooperation of research institutions, consultancy companies and
agricultural producers will be enhanced to address topical farming issues. Cooperation among
entities will be fostered by supporting the establishment of European Innovation Partnership
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Priority 1 of the EU rural development policy is fostering knowledge transfer and innovation in agriculture,
forestry and rural areas. The areas of intervention are as follows: (a) fostering innovation and the knowledge base in
rural areas; b) strengthening research and innovation links in agriculture, food production and forestry, including
efforts to improve environmental management and environmental performance.
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groups, involving researchers, consultants and farmers, and the implementation of joint projects,
pilot projects for the development of new products, practices and technology. The quality and
effectiveness of advisory services provided to farmers, forest managers, SMEs and micro
enterprises operating in rural areas will play a significant role in promoting the transfer of latest
research findings and the spread of innovation in agriculture, forestry, rural areas. In 2014-2020,
Lithuania will face challenges in the promotion of agricultural and rural development innovation
and science-business partnerships, namely related to raising the competitiveness of agricultural
entities and adding value to products produced in farms, increasing employment in rural areas,
preservation of biodiversity and landscape, increase and preservation of the value of forest
ecosystems, adaptation to climate change and promotion of social inclusion. Over 3,000 farmers
and forest managers, SMEs and micro enterprises operating in rural areas are estimated to use
advisory services by 2020.
Technological and organisational innovation will increase productivity, accelerate the
modernisation of small and medium-sized farms, build direct links between consumers and
producers, contribute to the development of environment-friendly and resource-efficient
production technology in agricultural and forestry sectors. EAFRD investments into innovation
should meet the objectives and priorities of the Lithuanian Smart Specialisation Strategy.
In order to address RDI challenges more effectively, cooperation with foreign countries
will be promoted, first of all, by using the interregional cooperation platform provided by the
EUSBSR and thus contributing to the increased competitiveness of the country and the Baltic
Sea Region.
1.3.2. Enhancing access, use and quality of ICT
This thematic objective was selected in order achieve goals set by Europe 2020
Flagship Initiative Digital Agenda for Europe ensuring that by 2020 entire Lithuania is covered
by broadband above 30Mbps, at least 50% of the households are subscribed to broadband above
100Mbps, and 85% of the population regularly uses the internet.
The overall result sought by the thematic objective is reduced digital division and
increased demand for internet and other ICT among the population (increasing the availability of
high-speed broadband internet access to all residents and households; encouraging people to use
the internet and providing assistance on the use of the internet); effective and comprehensive use
of ICT in the public sector and the provision of services (by providing technologically advanced,
consumer-oriented electronic services; ensuring effective re-use of public information for the
needs of business and society; ensuring optimal management and effective protection of the
national information infrastructure and resources).
First of all, sufficient availability and utilisation of the broadband infrastructure will
be ensured through: (1) direct contribution of the State to the development of infrastructure
without distorting competition (i.e. in the areas where the development of this infrastructure and
provision of services can not be safeguarded by market participants); (2) support measures to
promote private sector investment in the ‘last mile’ solutions of the broadband infrastructure; and
(3) measures to boost demand and encourage potential customers to start using the broadband
internet connection. In order to plan the optimal actions a comprehensive analysis of the
broadband (fixed and wireless) network infrastructure and its use in Lithuania is carried out. It
analyses alternative options for further actions to promote the development of the broadband
infrastructure. This analysis will serve as a basis for a model of sustainable investment in the
broadband infrastructure where optimal combination of different actors and action plans is
ensured. In order to optimise the public sector ICT base, measures safeguarding the
interoperability, security and efficient management of information resources and infrastructure
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and technological solutions for the protection of critical public ICT infrastructure will be
implemented. This optimisation is a prerequisite for lower costs of higher quality electronic
services and solutions for residents and businesses. In order to plan the optimal actions, the
Assessment of Trends and Prospects of the Public IT Infrastructure, to be funded from the EU
Structural and Cohesion Funds for the 2014-2020 programming period, is carried out. The aim of
the assessment is to create an architecture model for a national information resources
infrastructure, transition scenarios and an action plan for the optimisation of the management and
development of the public IT infrastructure.
Transparent, effective and convenient opening up of public sector information for reuse and encouraging business to actively use it for the development and provision of information
society services is relevant in order to increase the demand for ICT. The demand for ICT
products and services will be boosted through the maintenance and development of public
internet access infrastructure, as public internet access provides people with an opportunity to try
the internet and see its benefits, thus attracting new internet users.
There are also plans to further deploy smart advanced public and administrative
electronic services for the public and business to ensure accessibility, convenience and
benefits to users of public services provided in different fields, such as administration, health and
social security, environmental protection, culture, language, transport, etc. The Model for the
Description, Typing and Evaluation of Public and Administrative Electronic Services, that aims
to comprehensively evaluate the electronic services developed, identify priority areas for the
development of electronic services and to set the requirements for electronic services
development projects, is developed in order to properly prepare for the investments planned for
the 2014-2020 programming period.
The following results are expected to be achieved by ERDF investments:
Increased availability of high-speed broadband internet access: direct investments
and support will be focused on achieving that all households in the country have 30Mbps and
faster broadband internet connection by 2023.
Optimal management of public information infrastructure and resources: there are
plans to introduce solutions to ensure efficient use of the available public ICT base, already
developed IT tools and accumulated information resources. It is expected that by 2023, 50% of
the public and municipal authorities and institutions will be using the services of the platform
securing interoperability of public information resources for developing and providing their own
electronic services.
Effective protection of public information infrastructure and resources: in 2023,
98% of the information infrastructure should be identified as critical infrastructure and this entire
infrastructure, including all public information resources, should meet the necessary safety
requirements.
Efficient re-use of public sector information for the needs of business and society:
the Digital Agenda for Europe highlights the opening up of public data for re-use as one of the
major activities for the development of the digital single market; Lithuania will put efforts to
ensure that at least 85% of the enterprises uses public information for their commercial activities
by 2023.
Increased permanent use of the internet: the aim is to ensure that public internet
access points are used not only as free internet access points for people, but also as places where
IRT projects and initiatives promoting such using are implemented and where people can acquire
skills for smart use of the internet in order to achieve objective of 87% of the population
regularly using the internet by 2023.
Technologically advanced and consumer-oriented electronic public and
administrative services: by 2023, all basic public and administrative services for residents and
businesses will be provided via the internet, and consumers will be able to use all EU-level
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electronic services. It is also estimated that 63% of the Lithuanian population will be using
electronic public and administrative services. The target is to achieve that 40% of the population
uses electronic health services, 80% of the population has access to their medical records and
20% of the population uses electronic heritage services by 2023. At least 15% of the population
is expected to get involved in electronic democracy processes by taking part in the legislative
process online by 2023.
The following results are expected to be achieved by EAFRD investments:
Taking into account priority 6 of the EU rural development policy83, this priority area
will be further developed and improved in rural areas. EAFRD funding is primarily planned for
the expansion the new generation broadband connection (30Mbps and faster) infrastructure and
its accessibility to improve the quality of life among the rural population, social inclusion,
modern administration and productivity of SMEs in remote rural areas, and the economic
potential in rural areas. The aim is to ensure a better internet access and encourage internet usage
in under-populated rural areas where it is rarely used.
In the 2014-2020 programming period it is planned to use EAFRD financing to connect
about 400 agricultural objects (points), i. e. agricultural institutions and organisations, production
and processing enterprises, rural communities, major farms, to the broadband infrastructure and
to construct 400 km of fibre-based infrastructure. Under thematic objective 2, the EAFRD
support will be provides on a national level for investments into infrastructure based on fixed,
mobile or other technologies. In addition to that, as part of LEADER 'bottom-up’ initiatives
EAFRD support can be provided for increasing of computer literacy of rural population,
including farmers.
EAFRD funds will contribute to the achievement of the national goal of increasing the
internet penetration in rural areas (i.e. increasing the number of households with digital internet
subscription) up to 98% (it was 49% in 2013).
1.3.3. Enhancing competitiveness of SMEs, the agricultural sector (for the EAFRD) and
fisheries and aquaculture sector (for the EMFF)
In order to ensure the accessibility of SMEs to funding resources, in the 2014-2020
programming period Lithuania will develop and implement various business funding models
with special attention to new businesses and enterprises with a high potential for growth.
Activities to be supported and promoted include setting-up new enterprises and entrepreneurship
initiatives; ensuring the provision and accessibility of high-quality public services meeting the
needs of entrepreneurs by implementing new models and schemes of public services for business
start-up and development; applying funding models in line with the needs of business;
modernising incubators infrastructure to facilitate the promotion of entrepreneurship and settingup of new SMEs.
To enhance the international dimension of SMEs, support will be provided to the
international networking of enterprises or groups of enterprises (i.e. joining clusters or
associations), international expansion strategies, the participation in international fairs and other
events where enterprises will be able to present their products. Support will also be provided to
83
Priority 6 of the EU rural development policy is promoting social inclusion, poverty reduction and economic
development in rural areas. The areas of intervention are as follows: (c) enhancing accessibility to, and use and
quality of ICT in rural areas.
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the certification of products and services of enterprises planning to export their products; funding
models will be offered to facilitate international payments.
The EUBSBR, which also aims at promoting entrepreneurship and growth of SMEs in
the region, serves as a platform for strengthening the internationalisation of enterprises and
boosting their competitiveness.
Economic growth will be stimulated through support to SMEs productivity-enhancing
initiatives (the implementation of modern technology, e-commerce solutions and innovation
(including non-technological) solutions), which will contribute to the competitiveness of SMEs
and job creation (which will have a positive impact on businesses established in less developed
regions of the country).
To maintain and enhance the competitiveness of enterprises and to promote green
technologies, Lithuania will increase investments into the sustainable use of resources during the
2014-2020 programming period. Support is planned to the introduction of eco-innovation
(environmental technologies) and resource-efficient technologies in enterprises, as well as
industrial symbiosis and the implementation of enabling technologies in traditional industrial
production processes. This will strengthen the capacity of SMEs to engage in growth and
innovation processes.
Investments into promotion of entrepreneurship, business internationalisation,
productivity and ecological innovation in companies will also contribute to the implementation
of integrated marine policy and Blue Growth initiative. Better access to financing for business
start-up and development and to business services will facilitate creation of new jobs and more
rapid growth of the blue economy.
These investments will stimulate the growth of productivity and enable enterprises to
use the saved time, financial and other resources for the development of new products and
services with a higher added-value or for the improvement of the existing ones. Investments
based on this thematic objective will be in line with the smart specialisation priorities.
The following results are expected to be achieved by ERDF investments:
Increased number of SMEs and ensured availability and variety of financial resources.
The indicator of the level of entrepreneurship will be raised to 48 companies per 1,000 people by
2023. This target will be achieved by promoting business creation and development, providing
assistance, increasing the accessibility of services for start-ups, shaping a positive public opinion
on business and entrepreneurship, creating infrastructure for business incubation, etc. Wider use
of financial instruments will ensure the availability of funding for start-ups and expansions.
Companies will be given better opportunities to enter international markets and
discover new niche markets. Enterprises will be encouraged to merge and form clusters,
implement synergy-based activities directed towards the search for new export markets,
manufacturing and supply of goods and services. The ratio of SME export and GDP will
accordingly improve from 77.9% in 2011 to 100% in 2023.
Lithuanian business entrepreneurship indicators will be improved. Higher productivity
indicators will be achieved by promoting businesses (including those in the target territories) to
introduce modern technologies that ensure capacities for the production of new products or the
provision of services. New e-business solutions, management methods and other organisational
processes will contribute to the optimisation of production and service provision and the creation
of new innovative jobs.
The number of Lithuanian enterprises investing in eco-innovation and other resourceefficient technologies is expected to grow. Companies will be encouraged to implement process
(e.g. eco-friendly design), product, organisational (e.g. management system development) and
other (e.g. waste-free or re-use technologies) eco-innovation and promote investments in the
sustainable use of resources. Eco-industry will grow, there will be increasing numbers of
traditional industrial companies using green technologies, technologies for industrial innovation
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and enabling technologies for economic growth, which in turn will increase the supply of ecofriendly products and services in the market and create more green jobs. Consequently, the
sustainable growth of Lithuania’s economy and the long-term competitiveness of enterprises will
be ensured.
The following results are expected to be achieved by EAFRD investments:
Taking into account priorities 2 and 3 of the EU rural development policy84, in the
2014-2020 programming period EAFRD resources will be earmarked for the strengthening of
competitiveness in agricultural and food sectors (especially the expansion of animal production,
fruits and vegetables sectors) by channelling the investments and by providing investment
support and/or using the financial instruments to support the modernisation of production and/or
processing of agricultural products, introduction of innovations and new technologies, boosting
of labour productivity and efficiency of resources.
To promote the competitiveness of producers of primary agricultural production, they
will be encouraged to better integrate into the agricultural and food chain; the production of
exceptional quality products will be supported.
The local market for agricultural and food products will be expanded through the
stimulation of direct sales and the integration of producers (especially the small ones) into the
food supply chain.
Participation in food quality schemes recognised at the national and EU level,
establishment of producer groups and organisations in the agricultural sector will be supported
with an aim to encourage Lithuanian farmers to produce agricultural and food products with a
higher value-added and to provide consumers with a variety of high-quality food.
The restructuring of semi-subsistence farms will be facilitated and the performance potential of
the agricultural sector increased through the promotion of the development of new products,
technologies and organisational systems at all levels of the supply chain.
Competitive conditions for agricultural activities will be built on rational land use,
upgraded reclamation systems, land consolidation, construction and improvement of local farm
roads. In order to cut down losses suffered by the farmers, the farmers will be encouraged to
insure plants and animals against consequences of dangerous meteorological events, outbreaks of
diseases.
In order to improve the forestry infrastructure, investments related to construction and
improvement of forest tracks, installation or renovation of forest drainage systems will be
supported.
Stronger competitiveness of Lithuanian agriculture should result in an annual rise in the
export value of agricultural and food products. The aim is to increase the export value of
agricultural and food products by a quarter by 2020 compared to 2012 (in 2012, it amounted to
LTL 14.6 billion).
Improved structure of agricultural holdings, upgraded machinery and implemented new
technologies will ensure the production of higher value-added, qualitative products and higher
productivity. The value-added per full-time equivalent should reach EUR 7,200, up from EUR
3,800 EUR in 2009. The share of farms engaged in diversification activities should rise from 1 to
4%.
The following results are expected to be achieved by EMFF investments:
84
Priorities 2 and 3 of the EU rural development policy include enhancing the competitiveness of all types of
agriculture and enhancing farm viability, as well as promoting innovative farming technologies and sustainable
forest management, food chain organisation, including processing and marketing of agricultural products, animal
welfare and risk management in agriculture.
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The implementation of this thematic objective using EMFF investments will create
more favourable conditions for economic activities through the use of new ideas. The promotion
of SME involvement in economic growth and innovation processes will also create better
conditions for the establishment of new enterprises and growth of SME capacities. Taking into
account the specifics of individual fisheries subsectors (fishing, aquaculture and processing), the
EMFF resources will be used to achieve tangible results in each specific field.
Competitive fishing will be encouraged (the improvement of products, processes,
management, processing and trade will be supported innovation and advisory services, support
will also be provided to the diversification of activities, investments in vessels to improve
working conditions as regards to health, safety and hygiene, and the quality of fishery products).
Adding value to fishery products, gradual transition to maximum allowable catch and phasing
out of discards will be supported as well as measures to reduce the impact of fishing on the
marine environment (by implementing environmental measures and innovation related to the
protection of marine bio resources; by adapting the adequate fishing gear, by improving the
infrastructure of fishing ports and landing locations, by implementing measures intended to
protect and enrich water fauna and flora) and climate change mitigation and energy efficiency
measures (by means of adequate investments into vessels and equipment, by modernising the
infrastructure of fishing ports and landing locations (including fishing in inland waters).
There are plans to promote sustainable aquaculture, including biodiversity (by means of
investment into the reduction of adverse environmental impacts or increasing positive impacts
through the introduction of environment-friendly production methods and protective
aquaculture); promote competitive aquaculture (by developing and implementing technological
innovation, using advisory services, disseminating good practices and information, investing in
profitable aquaculture activities, adding value and diversifying activities through the
implementation of industrial innovation aimed at more economically efficient and environmentfriendly aquaculture activities, including support to the development of closed systems of
aquaculture). Primary processing of fishery and aquaculture products will be supported in both
fishing and aquaculture subsectors with an aim to achieve better coordination of the sector;
marketing measures, production and marketing plans implemented by producer organisations
will be supported.
To stimulate progress in processing, funding will be allocated to the processing of
fishery and aquaculture products, the improvement of products, processes or management and
organisational systems. Climate change mitigation and adaptation measures and energy
efficiency measures will also be encouraged in the processing of fishery and aquaculture
products, which contribute to energy savings, the minimisation of environmental impacts and the
processing of organic aquaculture products.
These investments are expected to add value to products of fishing enterprises
operating in the Baltic Sea, near shores of the Baltic Sea and inland waters, raise the profitability
of fishing enterprises operating in the Baltic Sea, near shores of the Baltic Sea and inland waters,
and contribute to reducing numbers of accidents at work in the marine and internal fishing
sector.
As to the competitiveness of aquaculture in the Lithuanian fisheries sector, in 20142020 it is expected to see an increase in aquaculture production and its value (including
processing), as well as in new jobs in the sector.
It is also expected to see an increase in the value of fishery and aquaculture processed
products and new jobs in supported enterprises operating fisheries and aquaculture sectors. This
should raise the number of new or materially improved products in the market, and promote new
or improved processes, management and organisational systems. The value-added of production
in the sector is likely to increase as well.
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1.3.4. Supporting the shift towards a low carbon economy in all sectors
Although Lithuania currently meets requirements of the Kyoto Protocol, it is committed
to ensure that GHG emissions in Lithuania will increase no more than by 15% by 2020, i.e.
during this decade (2011-2020) the growth rate of emissions must be halved compared to the last
decade. This target may be successfully achieved through tasks of environmental and energy
policies formulated in Europe’s growth strategy Europe 2020: reducing GHG emissions by at
least 20% compared to 1990 levels, increasing the share of RES in the final energy consumption
to 20%, and increasing energy efficiency by 20%.
The National Energy Independence Strategy sets an ambitious objective as to the
development of RES, namely to increase the share of RES in the final energy consumption to
23%.
Looking sector wise, the share of district heating generated from RES (biofuel) must be
increased at lease up to 60%, the share of electricity generated from RES up to 20%, as
compared to the total power consumption. At least 10% of the fuel used in the transport sector
must be generated from RES.
In 2013, the Lithuanian energy sector increased the share of biofuel to 32%. Rapid
installation of biofuel combustion capacities allows for realistic expectations that in 2014 this
indicator will rise to 35%.
Supporting these activities will contribute to the implementation of the national
(National Energy Independence Strategy, National RES Action Plan) and EU strategic
documents (EU Energy Roadmap 2050 and Strategic Energy Technology (SET) plan) in
Lithuania. Industrial companies need to increase their use of RES due to the increasing price of
industrial production, which is mostly determined by the high price of energy consumed for
production.
The following results are expected to be achieved by ERDF investments:
The renovation (modernisation) of multi-apartment buildings and public buildings, i.e.
modernisation of building envelopes as well as internal heating and power installation systems,
can result in the economic potential for energy efficiency from 30 to 50%. Most of the measures
intended for improving energy efficiency, therefore, will be focused on the funding of projects
aimed to improve energy efficiency in old multi-apartment buildings, residential buildings and
public buildings.
Further success in the renovation of multi-apartment buildings requires a wider use of
management and social innovation in this area – district-wide renovation, renovation under the
Energy Service Company (ESCO) model, more inventive promotion and management of
complex renovation.
Investments are planned for the installation of electricity production capacity using
RES, the creation and introduction of new technologies for more efficient use of RES: the
installation of combined heat and power, the implementation of equipment and technology
(technological solutions) enabling large industrial enterprises to increase energy efficiency, and
energy audits.
In order to increase energy efficiency of transport sector and to achieve the objective set
in the National RES Development Strategy: to ensure that by 2020, 10% of the fuel consumed in
the transport sector were generated from RES, and to use more alternative and less polluting fuel
thereby reducing environmental pollution, investments will be channelled into the development
of coordinated, integral and sustainable public transport system in the major cities. SUMP will
be prepared and sustainable mobility measures envisaged in them will be implemented in the
municipalities. In addition to that, investments will be made into measures promoting sustainable
mobility (i.e. lifting dependence on cars): pedestrian and bicycle transport infrastructure,
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integrated multimodal public transport, combined transport travel systems P+R (Park&Ride) and
B+R (Bike&Ride). The envisaged measures will also include promotion of use of electro
mobiles, plug-in hybrid and other alternative fuel driven transport means for public purposes.
The following results are expected to be achieved by investments from the
Cohesion Fund:
To ensure the sustainable development of the energy sector and the reduction of energy
poverty, support will be aimed at the expansion of RES in the production of heat and
cogeneration, replacing energy production facilities that use fossil fuels with the effective
biofuel-powered ones. The share of RES in the district heating fuel balance must account for at
least 60% (it is around 26% at the moment). In the electricity sector this share must be 20% (it is
10.9% at the moment). To this end, it is crucial to ensure the development of a balanced biofuel
collection and processing infrastructure. The efficient use of local biofuel will also be promoted
by support to the replacement of outdated and inefficient biofuel-powered boilers in individual
houses.
Moreover, power distribution networks will be upgraded with advanced network
technologies. Grid substations and lines will be renovated, transformers replaced with more
efficient ones. Also, it is planned to renew district heating routes, thereby cutting losses and heat
prices for consumers.
Investments will be allocated to the modernisation of lighting systems in urban public
spaces/streets to limit power consumption. Possibilities will be considered for the development
of smart networks and other innovative technologies, looking for ways to save costs both in the
private and the public sector. These measures will facilitate the alleviation of poverty and have a
positive effect on environmental protection and public welfare.
Public transport means that make smaller adverse environmental impact will be
purchased. That will help to reduce the pollution generated by the public transport means and the
amount of CO2 emitted by the transport sector, and to improve the attractiveness of the public
transport.
The following results are expected to be achieved by EAFRD investments:
The available natural emission abatement methods will be expanded and new ones
introduced under priority 5 of the EU rural development policy85. Afforestation, sustainable
management of soil, forests and grasslands will hep cut nitrogen oxide, ammonia and methane
emissions in the agricultural sector by improving cattle keeping practices, manure storage
conditions, ensuring the implementation of rotation, the promotion of the use of residual biomass
for electricity production, the production and use of biogas.
By 2020, its is planned to produce 20 million m3 of biogas in the agricultural sector.
EAFRD support for production of bio energy will be granted in line with the sustainability
criteria set forth in the EU legislation (directives on RES and on improvement of fuel quality).
The measures foreseen for 2014-2020 address consumption of timber cutting waste
(their amount constitute about 1 million m3) for the production of biofuel. The implementation of
the support measures should lead to the increase of annual scope of consumption of timber
cutting waste and small scale illiquid timber for the production of biofuel up to 500,000 m3 by
2020. The support of investments into timber cutting must be based on forest management
85
Priority 5 of the EU rural development policy is to promote resource efficiency and support the shift towards a
low-carbon and climate-resilient economy in the agriculture, food and forestry sectors. The areas of intervention are
as follows: (c) facilitating the supply and use of renewable sources of energy, by-products, wastes, residues and
other non-food raw materials for the bio-economy; (d) reducing nitrous oxide and methane emissions from
agriculture; (e) fostering carbon sequestration in agriculture and forestry.
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project which would ensure consistency of the scope of timber preparation with sustainable
forestry development principles, facilitating efficient functioning of the country’s forestry sector.
The following results are expected to be achieved by EMFF investmentsEMFF
investments will also promote the use of RES and energy efficiency in fisheries enterprises,
enabling them to choose technological solutions boosting their competitiveness, also encourage
enterprises to use energy resources in a sustainable manner, implement energy efficiency
promotion programmes in fisheries enterprises and promote investments targeted at reducing
emissions of pollutants or GHG and increasing energy efficiency in fishing vessels. For the sake
of fuel efficiency, efforts are also made to employ the systems for redistribution of fishing
capacities. It is expected that the ratio between the fuel consumption and the landed catches
(l/kg) in the supported fishing companies will improve.
1.3.5. Promoting climate change adaptation and risk prevention and management
The strategic objective of the Lithuanian Policy for Adaptation to Environmental
Changes Resulting from Climate Change is to reduce the vulnerability of natural ecosystems and
national economic sectors through measures that will maintain and increase their resilience to
climate change as well as favourable conditions of life and economic activities. Achieving this
objective requires, first of all, monitoring, studying and assessing impacts of climate within the
Lithuanian territory and in separate regions. It also crucial to intensify the coordination and
dissemination of information on adaptation to climate change by carrying out qualified and
systematic storage and management of GIS-based information on climate change, and the
communication of such information to different interest groups (scientists, public authorities,
society). Lithuania must pay more attention and assets to the optimisation of technical capacities
of environmental monitoring, assessment and control, the expansion of climate change-related
knowledge, the strengthening of the preparation of rescue services for climate change-induced
disaster management, the systematic implementation of coastal management measures, and the
development of an efficient flood risk assessment and management system.
Mitigating consequences of disasters will include gradual increasing of resilience of the
ecosystems and urbanised areas to the threats provoked by climate, and strengthening of
capacities to manage disasters caused by climate change related natural calamities. In terms of
climate change, the most vulnerable area is the coast of the Baltic Sea (due to gradual raising of
the sea level) and the Lower Nemunas River area, where the risk of floods is relatively bigger
than in other parts of the country. To increase resilience to climate change, the sand dunes of he
Baltic Sea will be further reinforced and the beaches will be nourished in those sections where
the erosion is the largest. The plans also include gradual restoration of previously drained
wetlands which in the long term would serve as a natural buffer mitigating adverse effects of the
floods to people, nature and agriculture. Investing into the development of disaster management
systems, the strengthening of capacities and resources required for timely disaster management
will help implement the Council’s recommendation for Lithuania as to the minimisation of
certain risks, namely to develop monitoring, detection, early warning and alert tools, enhance
emergency management capacities, improve crisis communication and invest into appropriate
response resources.
Investments into the reinforcement of the environmental monitoring assessment and
control systems and into the sea shore protection measures are closely related to the actions of
the Integrated Marine Policy, because these interventions will contribute to the establishment of
new knowledge about the sea status and systemizing of the available knowledge, and will
improve the conditions for living and investing in the coastal region.
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The following results are expected to be achieved by ERDF investments:
- Improving the readiness of rescue services to respond to climate change-induced disasters and
liquidate their consequences, cutting arrival time of rescue forces responding to possible
floods at the scene;
- Increasing the share of individuals warned about climate change-induced disasters. For this
purpose, investments will be made to improve the system for warning residents and economic
entities about dangers in flood areas through sound devices;
The following results are expected to be achieved by Cohesion Fund investments:
- Ensuring qualified and continuous collection, storage, management of information on the
state of environment and climate change, also its communication to different interest groups;
- Developing a strong basis of knowledge on impacts and consequences of climate change;
- Developing and renovating surface (rain) wastewater treatment facilities;
- Enhancing environmental resilience in those parts of Lithuanian territories that are the most
sensitive to climate change, reducing significant negative impacts of threats caused by climate
change to the environment, human health and life, cultural heritage, economic activities and
infrastructure;
The following results are expected to be achieved by EAFRD investments:
Considering priority 4 of the EU rural development policy, the aim is to ensure
adaptation to climate change, promote compliance with environmental requirements and
resource efficiency, support a shift to a low carbon economy in all sectors.
The greenhouse effect will be minimised by afforestation measures, increasing forest
areas and cutting CO2 emissions. EAFRD support for afforestation will contribute to the national
objective of at least 35% of the country’s forest cover.
Keeping and breeding endangered old breeds of livestock and poultry will be promoted
to halt the loss of biodiversity and to create favourable surviving and breeding conditions for rare
local breeds of livestock and poultry.
Even though EAFRD resources will be used for developing the livestock sector, this
activity will focus on modern, cost-effective, clean and environment-friendly livestock
technologies that allow for resource efficiency, limitation of possible pollution, climate change
mitigation and adaptation. In addition to that, environmental requirements will also be followed.
Land consolidation, agricultural water management measures which will allow for a
more rational farming and soil improvement will also add to mitigation of climate change. To
achieve the climate change adaptation goals and objectives, a few farming management
measures are envisaged which will contribute to the improvement of soil quality (for instance,
planting of arable land with winter cultures, undersowing of multi-annual grass, promotion of
cultivation of leguminous plants, etc.). Where appropriate, the implementation of the above
activities will include cooperation with other countries thereby contributing to the EUSBSR
objective ‘Increase prosperity’, sub-objective ‘Climate change adaptation’.
1.3.6. Protecting the environment and promoting resource efficiency
The expansion of the municipal waste management system will aim to ensure that a
minimum of 45% of generated waste is recycled or otherwise used by 2016 and a minimum of
65% by 2020. The strategic aim is to halt, by 2030, the discharge of biodegradable waste, waste
that does not have any energy value and is not suitable for recycling in landfills. To this end,
economic and regulatory measures will be coordinated to properly prioritise waste management
actions and guarantee the accessibility of the waste collection service to all.
The achievement of the aims above will be facilitated by the lessons learnt in the
previous periods and the development of the municipal waste management system. Eight
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biological treatment facilities that are being built in different parts of the country are expected to
be launched by late 2015. It will considerably reduce the amounts of waste in landfills. Improved
possibilities for people to recycle waste at the place of generation will be ensured by additional
investments into communal waste collection facilities and equipment (collection containers
(boxes) for different types of communal wastes, sites for collection of indirect materials and
waste), making their network more dense, also by facilities for preparation for recycling and
reuse (sorting lines, presses, mechanical processing machinery). This will allow for the
preparation for reuse and recycle of at least 50% (in terms of waste amounts) of paper,
cardboard, metal, plastic and glass waste that can be found in municipal waste flows by 2020.
After a plastic bottle deposit system is launched in May 2015, its development will be
supported through tender. Support under thematic objective 3 will be provided to enterprises that
intend to recycle waste. The private sector will invest into new waste recovery facilities in
Vilnius and Kaunas. These facilities are expected to start operation in 2016-2017.
As the economy is recovering after the crisis, amounts of construction waste and ashes
may grow considerably. Flexible application of legal and economic regulatory measures will
help ensure that by 2020 a minimum of 70% of non-toxic construction and demolition waste is
prepared for recycling, reuse or other use.
With the view to proper implementation of the environmental acquis requirements,
developing of administrative and methodological framework of the waste management system,
and improving of waste accounting, support will be provided for: acquisition of laboratory
equipment for identification of waste contents; modernisation of waste accounting information
system; studies and workshops in relation to identification of types of waste and methods of
waste management; liquidation of the storage of radioactive waste where the waste generated by
medical institutions, industry, research centres is kept; implementation of measures promoting
waste prevention; publicity measures.
While contributing to priority objective 1 of the General Union Environment Action
Programme to 2020 – to protect, conserve and enhance the EU’s natural capital – will
significantly reduce negative effects on resources of fresh, transitional and coastal waters, while
maintaining good or improved ecological and chemical status of surface waters as defined by the
Water Framework Directive as well as significantly reduce negative effects on marine waters,
whilst achieving or maintaining good environmental status as required by the Marine Strategy
Framework Directive. To avoid threats to the environmental and human health and to improve
the quality of the soil, in particular in the abandoned former industrial or military territories,
extensive geochemical investigations have to be conduced, the territories have to be refurbished
and opened for new activities.
Damaged territories of exhausted quarries and peat extraction facilities will be also recultivated.
Contributing to the EUSBSR objective “Save the Sea”, the aim is to reduce marine
pollution from coasts up to the acceptable level, mitigate negative effects of toxic substances in
the sea, ensure clean shipping and create a marine pollution monitoring system. Where
necessary, higher effectiveness of measures will also be achieved through cooperation with other
countries in the region, especially emphasising HELCOM context. These activities will focus on
the strategic objective set in the Baltic Sea Environment Protection Strategy, namely to achieve
and/or maintain good environmental status of the Baltic Sea by 2020. The activities aimed at the
improvement of the monitoring and the status of the Baltic Sea and of other water bodies and to
reinforce the capacities of the pollution control and liquidation system are in line with the
priorities of the Integrated Maritime Policy because the implementation of the activities will
allow to build up the available knowledge about the status of the Sea and to use this knowledge
in the decision making process as well as will help to better protect the biodiversity and the
Baltic Sea environment.
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Lithuania’s aim as to the protection of air quality is to ensure that emissions do not
exceed the volumes set out in international and EU law, and the concentration of air pollutants in
the ambient air does not exceed environmental contamination levels that are not hazardous for
human health and environment. Seasonal air pollution in cities will be addressed by measures
aimed to reduce air pollution by particulate matter.
Effective environmental air pollution and quality management must be in place to meet
the increasing stringency of international protocols of the Convention on Long-Range
Transboundary Air Pollution and requirements of other conventions regulating emissions to the
ambient air as well as the emission reduction targets set in the EU Thematic Strategy on Air
Pollution for 2020. EU funding will be allocated to the improvement of air quality control in
cities, thereby enabling municipalities to monitor air quality, plan and apply effective measures
to ensure that air quality meets requirements as prescribed by the Law of the Republic of
Lithuania on the Protection of Air.
Investments will be earmarked for the water management sector (including mud
treatment), paying special attention to rural areas where people do not have access to highquality services of drinking water supply and wastewater treatment. Accordingly, an emphasis
will be placed on the renovation of water supply and wastewater systems, which, on the one
hand, will cut corporate exploitation costs, and on the other hand, minimise negative
environmental impacts.
In the new programming period, special measures are planned for strengthening
functions of the natural framework, managing landscape habitats of various levels, restoring
damaged ecosystems and services they provide, including the reinforcement of functions of
migration corridors.
To implement target 1 ‘Fully implement the Birds and Habitats Directives’, target 2
‘Maintain and restore ecosystems and their services’ and target 5 ‘Combat invasive alien species’
of the EU Biodiversity Strategy to 2020, support will be provided to measures related to
protection and restoration of natural habitants and protected species, regulation of the population
of invasive alien species, maintenance and restoration of green infrastructure (natural
framework), reduction of fragmentation of ecosystems.
Targets of the EU Biodiversity Strategy to 2020 will be achieved by joint efforts and
complementary measures of the LIFE instrument, the ERDF, the Cohesion Fund and the
EAFRD. By 2020, the implementation of target 1 will show an improved conservation status of
all EU natural habitants and at least 50% more EU species. Implementation of target 2 will
ensure that by 2020 ecosystems and their services are maintained and enhanced by establishing
green infrastructure and restoring at least 15% of the degraded ecosystems. Priorities for the
implementation of these two interrelated targets are provided for by the Prioritised Action
Framework and the National Environmental Strategy, which make a provision for further
reinforcement of Natura 2000 protection, drafting of nature management plans for Natura 2000
ensuring good conservation status of species and habitats as well as implementation of the nature
management measures provided. These documents will serve as a basis for ensuring, by 2020,
good conservation status for at least 40% types of natural habitats of EU importance found in
Lithuania and 60% of species of EU importance.
Local species will be enabled to survive, reproduce and migrate, and important services
of ecosystems will be reinforced by special measures. These measures will preserve and, where
necessary, restore lost elements of the green infrastructure, natural links among Natura 2000
territories, high nature value farming territories and other territories. Additional forest sanitary
protection measures will help minimise the risk of prevalence of forest diseases and pests.
A biosafety monitoring and control system will be developed to assess risks posed to
biosafety and threats to ecosystems, as well as to identify management and preventive measures.
Necessary legal, administrative, planning, information, raising awareness and other
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preconditions will be created to achieve the objectives of protected territories; specific
conservation and management measures will be implemented; damaged complexes and objects
will be restored and protected, objects of interest will be maintained with regularity. To secure
the protection of natural and cultural heritage values and to preserve the landscape diversity,
territorial and strategic planning documentation will be prepared in line with the sustainable
development principles establishing mutually compatible objectives dealing with conservation of
natural and cultural values and economic development . Fire safety systems will be improved
and fire prevention in forest increased.
Furthermore, measures aimed at raising public awareness about environmental
problems as well as promoting environmental activity among the population, i.e. projects aimed
at environmental awareness to encourage a greater interest by the public in environmental and
natural protection, will be implemented. While promoting the interest in nature, it is important to
ensure that visits to the natural setting would cause as little damage to the nature as possible. It is
not enough to build separate objects in national parks (educational walking and cycling trails,
water routes, watchtowers and viewpoints). It is equally important to join them in a system, i.e.
into appropriate tourism routes that connect sites of interest and information points in one or
several residential areas, in order to ensure not only the development of cultural and natural
objects, awareness and increasing numbers of visitors, but also regional collaboration. The
investments into cultural and sustainable tourism infrastructure objects for the development of
endogenous potential will be based on the provisions of Article 3 of the ERDF Regulation, with
particular consideration of Article 3(1)e provisions. In all cases efforts will be made to ensure
that all the restored and actualised cultural heritage objects are filled with economic, social,
educational and/or cultural activities. The aim is to make these objects poles of attraction for
foreign and domestic tourists and for local people strengthening entrepreneurship skills and
community of the latter. This will be a contribution to integrated regional growth through
promotion of social and economic activities. The impact of these investments will be assessed by
measuring the increase in the flows of visitors in the restored objects. While selecting cultural
heritage objects much efforts will be directed towards comprehensiveness and complementarity
of investments by balancing cultural heritage actualisation with the accessibility of social and
economic services, increasing of competitiveness of target territories, education of the society,
optimisation of urban infrastructure, ensuring of multifunctionality. Inclusion of certain local
heritage objects into tourism routes will be a particularly important element of the newly planned
measures and follow-up of the 2007-2013 tourism marketing and signing measures.
The following results are expected to be achieved by investments from the ERDF:
The status of natural heritage values and landscape protection will be improved; there
will be wider opportunities created for the society to get acquainted with these values, while
increasing environmental participation of the people and their awareness of environmental
problems.
The legacy of the cultural heritage and the number of local people and tourists visiting it
will be increased by creating an additional flow of visitors.
The following results are expected to be achieved by investments from the
Cohesion Fund:
The situation in the waste sector will significantly change and volumes of biodegradable
waste disposed in landfills, as calculated according to the volumes of 2000, will reduce at least to
35% by 2023. The principles of funding regional waste management centres will be reviewed,
promoting higher waste sorting and reuse. System management, planning and development will
be improved through financial instruments and grants to regional waste management centres,
municipalities and waste management companies. Raising awareness and information measures
will also be implemented at the regional level.
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Liquidation of the storage of radioactive waste generated by medical institutions,
industry and research centres.
Bodies of water that are in good condition will account for 72% by 2023, and the share
of housings connected to a drinking water supply and wastewater treatment system will increase
up to 90% respectively.
The protection of plants, animal species, habitats and landscape protected by national
and EU law and international treaties will be reinforced through regulation of populations of
invasive plants and animal species, mitigation of other direct threats to biodiversity and ensuring
the best possible conditions for the preservation of biodiversity in the country.
Air pollution with solid particulate matter in the cities will be reduced by improving
street cleaning technologies in the major cities of Lithuania; management of urban air pollution
and quality control will be improved.
The following results are expected to be achieved by EAFRD investments:
With regard to priority 4 of the EU rural development policy86, in the 2014-2020
programming period EAFRD funds will be used for:
− restoring and preserving ecosystems dependent on agriculture and forestry, i.e. special
measures will promote efficient use of forest resources, ensure the protection of ecosystems, the
restoration of damaged forests, afforestation, the fostering of young stands and other initiatives
aimed at the preservation of forests and the efficient development of forestry;
− supporting the restoration and protection of biodiversity and landscape, including
Natura 2000 areas, promoting the introduction of HNV and environment-friendly farming
systems. Agro-environmental, landscape stewardship and ecological farming measures will
contribute to the improvement of soil quality;
− targeting the main EAFRD actions at fostering carbon sequestration and reducing
emissions in agriculture and forestry. This target area will be highly dependent on certain
farming practices, including the use of multi-component plants, the application of no-till
technology, the formation and maintenance of pastures, allowing agricultural soil to absorb and
accumulate carbon, which may facilitate climate change mitigation. Positive effects of forests in
Natura 2000 areas on organic carbon stocks in soil are also viewed as the promotion of
sequestration. Theory-based EAFRD support will focus on efforts to apply environment-friendly
farming and forestry practices, especially in areas which are threatened by too intensive farming
or land abandoning, i.e. areas which have natural or other specific obstacles;
− With a view to achieving good status of bodies of water as established by Water
Framework Directive 2000/60/EC, Directive 2009/128/EC establishing a framework for
Community action to achieve the sustainable use of pesticides, and Directive 91/676/EEC
concerning the protection of waters against pollution caused by nitrates from agricultural
sources, in 2014-2020 programming period the RDP 2007-2013 measures aiming at
improvement of water quality, sustainable use of plant protection products and fertilisers,
protection and improvement of soil quality will be continued.
− promoting organic and environment-friendly farming and its development. Organic
farming will promote more efficient use and management of resources, help maintain or improve
the quality of soil, reduce water pollution, preserve authentic agrarian landscape, halt
biodiversity loss and mitigate climate change. Organic and environment-friendly farming will
86
Priority 4 of the EU rural development policy is to restore, preserve and enhance ecosystems dependent on
agriculture and forestry. The areas of intervention are as follows: (a) Restoring and preserving biodiversity
(including in Natura 2000 areas and areas of High Nature Value farming) and the state of European landscapes; (c)
improving soil management.
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create an attractive product, whilst creating value-added. Between 2012 and 2020, the value of
certified products with exceptional quality will increase by 80% and the value of certified
organic products by 10%.
Regions and Member States will cooperate for the implementation of the sub-objective
‘Climate Change Adaptation’ of the EUSBSR objective ‘Increase Prosperity’.
The following results are expected to be achieved by EMFF investments:
Promotion of biodiversity and functions of ecosystems, including Natura 2000, by
enhancing and protecting natural resources of the fishery regions, including combating climate
change, introducing of aquaculture production methods compatible with specific environmental
needs and special management requirements concerning identification of Natura 2000
territories, extensive aquaculture forms, including protection and improvement of the
environment and biodiversity, and management of specific features of the landscape and
traditional aquacultural zones.
To achieve the targets set out in the reformed CFP regarding EU sustainable fisheries, to
minimise the impacts of fishing on the marine environment and to stop the ongoing depletion of
certain fish stocks as well as understanding the need for immediate protection measures to
restore fish stocks, the EMFF will support measures promoting a new approach to fishing
management and setting a total allowable catch and a gradual banning of discards in the
Lithuanian fisheries sector. These actions will help maintain or restore the level of fish stocks
leading to sustainable use of living biological marine resources.
The EU approved programmes for restoration of fish resources will be implemented;
unwanted catches will be reduced and the conditions for landing and utilisation of the unwanted
catches in order to fully eliminate discards will be improved.
It has been increasingly obvious that seas and coasts are very sensitive to economic
processes. There is also a better understanding that land and fresh water are limited resources. In
this context it is crucial to find ways how to use 71% of the planet’s surface, consisting of
oceans, more sustainable and to satisfy human needs such as food and energy. In 2012, the
European Commission published a communication ‘Blue Growth. Opportunities for marine and
maritime sustainable growth’ with the purpose to encourage Member States to use employment
and growth opportunities offered by European oceans, seas and coasts. Blue economy can help
ensure international competitiveness of the EU and resource efficiency, create jobs and find new
sources of development, while protecting biodiversity and marine environment, preserving
functions that are typical for healthy and resilient marine and coastal ecosystems. Sustainable
blue economic growth and employment in this field could be based on five value chains:
promotion and growth of blue energy, aquaculture, coastal and cruise tourism, production of
marine mineral resources and blue biotechnologies.
Measures of the integrated marine policy are closely related to some of the EUSBSR
priority areas: safe shipping, protection from emergencies at sea and on land; preservation of
biodiversity and natural conditions, including fishy areas (to minimise negative impacts of
fisheries on the ecosystem of the Baltic Sea); sustainable development of fisheries to develop
and improve coordination and cooperation between Member States and participants of the
fisheries sector for smart management of fisheries processes in the Baltic Sea and to increase the
overall impact of EMFF operational programmes of Member States.
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1.3.7. Promoting sustainable transport and removing bottlenecks in key network
infrastructures
The aim of the Lithuanian transport system is to develop a modern, competitive and
balanced multimodal transport system comparable to the standards of the old EU Member States
in terms of its parameters, safety and quality of services, and generating large value added. A
particular focus will be placed on the integration of the transport infrastructure into the TEN-T
network and efficient transport (railway and roads) connections with the core logistic nodes to
facilitate freight transportation by combining different modes of transport. A modern transport
infrastructure would provide new opportunities for the development of the national market,
creating of new jobs and expanding of industrial and service areas.
The flagship initiative ‘A Resource Efficient Europe’ covered by the sustainable growth
priority of Europe 2020 emphasises the importance of concerted implementation of projects
dealing with the development of the infrastructure that belongs to the core EU networks.
In the context of developing a modern transport system that is in line with the EU
principles, goals and criteria, the highest priority is given to the improvement of the TEN-T
network and expansion of its connections with national and local transport networks.
Having in mind the main structural challenges faced by the country, two priority
directions for the development of Lithuanian transport system have been identified, i.e. NorthSouth and East-West corridors.
The goal set forth in the White Paper to shift thirty per cent of road freight over 300 km
to other modes such as rail or waterbone transport by 2030 and more than 50% by 2050 will be
pursued. Another goal set in the White Paper, by 2050 connect all core network airports to the
rail network, preferably high-speed, will also be sought.
Installation of smart energy networks will enable more efficient energy use and will
facilitate RES integration into the market. Successful implementation of energy infrastructure
projects will allow Lithuania to become an integral part of the EU Baltic Sea Region and to enter
other geopolitical area based on competition of energy market participants, equality and
transparency. Safeguarding of the most important interest of energy consumers – to chose energy
resources at the most favourable price – will be facilitated.
It is planned that the development of transport and energy infrastructure connections
with other countries by increasing efficiency of the transport system will include, where
appropriate, cooperation with other countries of the region thereby contributing to the EUSBSR
objective ‘Connect the Region’.
The following results are expected to be achieved by investments from the
Cohesion Fund:
In order to further improve freight and passenger mobility via railways, international
railway corridors (TEN-T) and connections with them will be further developed by investing into
railway transport corridor I (‘Rail Baltica’) and constructing second tracks in railway transport
corridor IX, electrifying railway lines and installing ERTMS systems. The aim of these measures
will be to achieve significant improvement of train speed and quality of services.
The construction of the European gauge high speed rail in the Northern-Southern
railway section (Tallinn-Riga-Kaunas-Warsaw) connecting the Baltic countries with Poland will
enable to meet the increasing trade and services demands of the EU countries in this region. The
key priority pursued by complementing the investments sought from ‘Connecting Europe
Facility’ will be the creation of the necessary conditions for interoperability with the EU railway
network through the ‘Rail Baltica’ railway project (this project is identified in the EUSBSR as a
flagship project).
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As part of liquidation of barriers in the main parts of the network infrastructure in line
with the relevant technical interoperability specifications, the railway section running from
Polish border to Kaunas will have railway signalling, communication, power supply and traffic
management systems installed. Investments will also be made into the development of railway
stations with large passenger flows to improve their accessibility to other transport modes. By
connecting the European railway network into a single 1435 mm gauge system, the current links
with the 1520 mm gauge railway system will be maintained and reinforced, i.e. the maximum
possible efficiency of freight transition from one system to another will be ensured.
To increase safety of the railway traffic, there will be precautionary measures installed
in the railway level crossings. These measures will help to save at least three lives per year.
Another aim will be to mitigate adverse impact of the railway transport system on the
environment and the negative impact of noise generated by the transport system by
implementing different measures reinforcing environmental protection. The expansion of the
railway transport will contribute to increasing the efficiency of energy consumption by shifting
part of freight and passenger transportation from energetically less efficient roads transport.
To improve passenger and freight mobility via roads transport, international corridors
(TEN-T) North-South (‘Via Baltica’) and East-West as well as connections with them will be
upgraded. The road sections that do not meet the requirements applicable to the TEN-T roads
will be reconstructed, safe, convenient conditions for transit and long-distance traffic will be
ensured in line with traffic intensiveness, importance of the road and international standards.
Investments will also be made into construction of by-passes in order to eliminate barriers and to
increase the speed in TEN-T network, while also reducing negative impact of transit flows to the
cities. Intelligent transport systems will also be installed.
To improve freight and passenger mobility and to ensure safety, the plans include
modernisation and development of border control posts near the external EU borders in
accordance with Schengen requirements, EU customs legislation and international security
requirements, including through innovative solutions.
As part of modernisation of Klaipėda State Seaport infrastructure, its interoperability
with the railway and roads networks, which are indispensible components of multimodal
transport corridors and a part of the TEN-T network, will be improved. The expansion of
railways leading to/from Klaipėda State Seaport and modernisation of the existing railways will
widen the Seaport’s capacity, increase the speed of cargo delivery, mobility and, considering
increasing freight flow perspectives, will reduce potential accidents and environmental pollution.
For the sake of improved efficiency of the interoperability between different modes of
transport, establishment of container terminals and technologies in the outskirts to the Klaipėda
State Seaport where flows from all terminals would be consolidated, efficient interoperability of
all transport modes would be ensured and the concept of shuttle trains implemented, will be
promoted.
To ensure safe shipping, the direction of the alignment will be changed as part of
reconstruction of the breakwaters, and the approach channel of the Klaipėda State Seaport will
be deepened and widened. The aim will be to ensure safety of large-scale vessels in the approach
area of the Port. When the LNG terminal will come into exploitation and ships carrying LNG
will start coming to Klaipėda Seaport, it will be in particular important. It should be noted that
these investments will be subject to environmental impact assessment.
International air ports are an integral part of the TEN-T network, ensuring high-speed
passenger mobility between geographically remote destinations that are difficult to access by
land. As the number of tourism, business, diplomatic and other types of journeys has increased
investments in the air transport will be focused on the major air port of the TEN-T core network
with the view to improving the infrastructure and mitigating the negative environmental impact.
The main focus will be on environmental measures related to aircraft pollution due to frequent
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flights and long taxiing, and other actions aimed at improved environmental efficiency.
Investments into airports and seaports will be made only where the aims can not be
achieved by private funding. Investments will be based on cost-benefit analysis and will be
identified in the transport strategy.
The following results are expected to be achieved by ERDF investments:
The connections between the TEN-T network and regional centres will be developed. In
addition to that, in order to improve road traffic safety and compliance with the environmental
requirements, regional and municipal roads infrastructure will be modernised, management of
traffic will be improved by installing intelligent transport systems. Modernisation and
development of regional and local roads will be implemented in accordance with the integrated
development programmes of the target territories; the investments will form only a proportionate
share of the actions envisioned in the strategies, without exclusively focusing on renovation of
regional or local roads network, and will be based on cost-benefit analysis (taking into
consideration traffic intensity). To improve the safety of the railway traffic and the compliance
with the environmental requirements, railway infrastructure will be modernised by installing
safety and environmental protection measures. These investments will help to reduce the number
of railway accidents and adverse environmental impact of the railway system.
In the framework of development of inland waterways of national significance,
passenger and freight transportation infrastructure will be renovated and the interoperability of
inland waterways with other transport modes will be increased. As an integral part of the
Lithuanian transport system the inland water transport will be developed with a view to
integrating it into the operations of Klaipėda State Seaport and other logistics and multimodal
transport centres.
In line with the EU Council Recommendation 2014 to Lithuania concerning
improvement of electricity and gas connections and with a view to contributing to the subobjective ‘Reliable Energy Markets’ covered by the EUSBSR objective ‘Connect the Region’, as
well as to implement targets identified in BEMIP and to efficiently exploit the potential offered
by the international energy network connections in the future (NordBalt, LitPol link, GIPL), new
smart electricity transmission lines will be constructed securing technical conditions for power
exchanges through inter-system connections with Poland and Sweden, the existing electricity
transmission lines will be reconstructed (modernised) making these networks smart and ensuring
safety of energy supply to consumers.
The smart systems of gas transmission and distribution networks that are required for
the integration of LNG terminal into the market and integration of the Lithuanian gas systems
into the internal market of the European Community will also be renovated.
The renovated infrastructure of electricity and gas networks will ensure uninterrupted,
reliable and safe energy supply at competitive and economically justified prices.
1.3.8. Promoting employment and supporting labour mobility
The Europe 2020 Strategy sets a goal of raising the employment rate to 75% by 2020.
The NDP and the NRA establish a national objective of raising the employment rate to 72.8%
(age group 20-64) by 2020. Also, the NDP defines an objective of reducing the total
unemployment rate down to 7.5%. Lagging behind the targets set in the said documents is still
rather significant and requires both additional long-term efforts and investments. One of the
Council’s country-specific recommendations 2014 is to better target active labour market policy
measures to the low-skilled and long-term unemployed, address persistent skills mismatches,
consult with social partners concerning revisions of labour legislation in relation to framework
for labour contracts and for working-time arrangements.
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The following results are expected to be achieved by investments from the ESF:
Individuals who are unemployed or at risk of unemployment will be provided with more
employment opportunities. For this purpose, the coverage and effectiveness of ALMP measures
will be increased significantly, tailored plans used, new services, especially those needed for
long-term unemployed, provided, etc. Investments will be allocated to ALMP measures which
aim to provide or develop professional qualifications and competences, improve practical
working skills and promote territorial mobility among the unemployed, thereby significantly
contributing to strengthening their employment capacities and opportunities. A priority will be
given to long-term, low-skilled unemployed, youth, older people and people with disabilities.
Evaluating the experience in the programming period 2007–2013, adequate safeguards will be
improved for persons receiving support under subsidised employment schemes. Professional
rehabilitation of the disabled will be supported, paying closer attention to services that facilitate
integration into the labour market after a professional rehabilitation course. It is aimed to ensure
the operation of the European Employment Service (EURES) in Lithuania. The system of the
state employment service will receive investments to enhance the quality and accessibility of
labour market services, ensure the monitoring and evaluation system for ALMP measures and
sustainable recruitment, upgrade the system for employee adaptation and improvement of
competencies, improve the existing services and create news ones, etc. If necessary, public
works may be organised and financed from national funds. Better employment opportunities will
tackle high unemployment rates, contribute to achieving the national employment rate set in the
Europe 2020 and help implement the Council’s recommendation 2014 for Lithuania in relation
to targeted implementation of active labour market measures and improvement of their
efficiency.
It is planned to promote participation of the elderly people (over 54 years old) by
encouraging their involvement in the labour market, in the lifelong learning activities and social
life thereby addressing the EU Council Recommendations 2014 to Lithuania.
Youth up to 30 years of age will be provided better opportunities to integrate into the
labour market. The Youth Guarantee ensures that all young people get a good-quality and concrete
offer for a job, apprenticeship, traineeship, or continued education within 4 months of them leaving
formal education or registering with the Labour Exchange or joining the Youth Employment
Initiative. Early intervention, activation and integration into the labour market services will help
promote training, socialisation and integration into the labour market for young people who do
not work, study or participate in training activities. The Youth Employment Initiative will be
implemented by funding measures directly oriented towards young people and envisaged in the
Youth Guarantees implementation plan as approved by Order No A1-692 of 16 December 2013
of the Minister of Social Security and Labour. Such investments will contribute to the national
objective (set out in the NDP) of reducing the youth employment rate down to 16% by 2020 and
will help implement the Council’s recommendation 2013 for Lithuania.
Lithuania will observe increasing numbers of new micro and small businesses and selfemployed persons. Entrepreneurship of the national population will be increased through a wider
supply of business set-up services, including financial measures, more targeted grants, consulting
and the development of entrepreneurial skills. Due attention will be paid to the green and blue
growth sectors. In relation to business support services and implementation of financial (micro
credits, guarantees, interest compensation) and non-repayable instruments to support starting-up
and development of new businesses, the society will be informed about the incentives offered by
the state to legitimate business, therefore the level of self-employment will grow in Lithuania,
while shadow business will be phased-out. That will help to achieve the national goal set in the
NDP to reverse downwards tendency of self-employment by increasing its share up to 13%.
More high quality jobs and better social and cultural relations with Lithuania are
expected to slow down migration and encourage some highly-skilled emigrants to return.
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The following results are expected to be achieved by ERDF investments:
The largest link of the Lithuanian Labour Exchange network, that is the administration
of the Vilnius territorial labour exchange and Vilnius unit, will be upgraded with regard to the
needs of customers and employees, which will increase the satisfaction with the quality and
conditions of the services provided by the Lithuanian Labour Exchange.
More diversified economic activities, investments attracted to target territories creating
high value-added, conversion of abandoned territories and more visitors in urban points of
interest will make cities (target territories) more attractive for investment. An important role will
also be played by balanced migration flows, stimulation of people to choose the place of living
closer to their place of work (using the existing economic infrastructure more effectively).
Cities will firstly have their economic activities stimulated. For this purpose,
investments will be targeted at urban redevelopment (conversion) and territorial development,
integrating territories, improving their accessibility and thereby increasing employment
opportunities in the entire metropolitan area and the region (through the implementation of
sustainable urban development actions).
Small and medium-size cities, especially in more remote regions, will have a highquality, clean and safe living environment, which is necessary for addressing demographical
problems, maintaining qualified labour force (ensuring the development of basic economic
sectors in future), exploiting the potential of sites of attraction for better investing environment
and new jobs, and improving mobility opportunities for people living in or around these cities.
Better exploitation of the territorial potential (primarily, urban investment potential)
gives more opportunities for integrating inactive groups into the labour market, which is one of
the key challenges, in order to minimise the impact of demographical processes on the economy
and the labour market.
Small and medium-size cities, especially in more remote regions with prevailing
traditional industry or agricultural commodity production and rather low economic activity, will
be enabled to create new businesses which require functional, actively visited and utilised
centres of attraction (small trade, catering, leisure services, etc.).
The investments into cultural and sustainable tourism infrastructure objects for the
development of endogenous potential will be based on the provisions of Article 3 of the ERDF
Regulation, with particular consideration of Article 3(1)e provisions.
The following results are expected to be achieved by EAFRD investments:
A high unemployment rate will be addressed with regard to priority 6 of the EU rural
development policy87. A special emphasis is placed on the youth who is willing to do business in
rural areas.
In the implementation of this thematic objective, the EAFRD will additionally finance
business initiatives financed by other ESI Funds. To deal with employment and unemployment
issues, the EAFRD will support the setting-up and expansion of micro and small enterprises that
are not related to agricultural activities in rural areas as well as micro and SMEs in the forest
sector. Non-agricultural businesses are thought to be capable of creating jobs, leading to a better
quality of life in rural areas, reduced social exclusion of the rural population, the diversification
of skills and economic opportunities in rural areas. The share of the rural population working in
non-agricultural sectors will be 76% of the total rural population employed by 2020, going up by
4% compared to 2012.
87
Priority 6 of the EU rural development policy is promoting social inclusion, poverty reduction and economic
development in rural areas; areas of intervention are as follows: (a) facilitating diversification, creation of new small
enterprises and job creation, and (b) promoting local development in rural areas.
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The following results are expected to be achieved by EMFF investments:
EMFF investments will promote economic growth favourable to employment by
creating the inner potential as part of the territorial strategy for specific areas – promoting
innovation and creation of value-added and jobs in fisheries areas, promoting the diversification
of activities, strengthening the role of fisheries communities in local development, whilst
comprehensively addressing fisheries areas-specific issues – increasing their competitiveness and
promoting their economic growth. EMFF investments will increase the employment rate among
the most vulnerable participants in the fisheries sector—the population of fishing-dependent
coastal regions—while creating opportunities and improving conditions that will reduce social
exclusion, promote social well-being and improve the quality of life of local communities in
fisheries areas.
It should be noted that cooperation with other countries in the framework of the
EUSBSR, which is also aimed at increasing employment, dealing with youth unemployment and
promoting entrepreneurship, would help address employment-related challenges more
effectively. It will be therefore reinforced, where necessary.
1.3.9. Promoting social inclusion and combating poverty
ALMP measures and training-based investments alone cannot solve problems of
unemployment, social security, accessibility and quality of public social services, social
business, housing affordability, etc. Tangible results require large-scope investments and
continuity rather than short-term sporadic projects. On the other hand, just economic measures
are insufficient to tackle poverty. Investments targeted at infrastructure in the 2007-2013
programming period will be backed up by ESF investments in 2014-2020.
The implementation of the ESF objectives will be based on the principles defined in the
Social Investments Package88 which call for safeguarding adequate and sustainable social care,
investing into development of skills and capacities and helping people during critical periods of
their lives.
The following results are expected to be achieved by ESF investments:
Active inclusion measures will be financed to help individuals who are most distant
from the labour market (including individuals with addictive disorders, the convicted, individuals
released from imprisonment institutions, the disabled, Roma community members and other
vulnerable groups), so that a person who receives services is actively working for social
integration, is ready to look for a job and participate in education and training activities as well
as ALMP measures.
It is planned to increase participation of elderly people (above 54 years of age) by
involving them into competence enhancement trainings, volunteering, mentorship and other
initiatives promoting participation in the labour market, life long learning, social activities, and
by applying innovative methods of working with elderly people.
Other activities include creating, testing, implementing and developing effective and
innovative models and solutions for the provision of personal and public health care services
which will enable to ensure, to the maximum possible extent, smooth access to high quality
public health care services (enhancing and promoting of public health, disease prevention, early
88
Communication of the Commission to the European Parliament, the Council, the European Economic and Social
Committee and the Committee of the Regions Towards Social Investment for Growth and Cohesion - including
implementing the ESF 2014-2020, COM(2013) 83 final.
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diagnosing, medical rehabilitation, health restoration, etc.) for the people of the excluded target
territories and target groups.
The funding of awareness raising, education and training of target groups of the society
on the subjects of healthy living, protection and promotion of health, disease prevention and
control will enhance health literacy of the people in the target groups, build skills in healthy
living, reinforce capacities to control health risks.
The implementation of the projects in the area of healthy aging will raise the health
literacy level among the elderly people and their motivation to be in good health as long as
possible by controlling the health risks and using health training, precautionary and early
diagnosing services, and by participating in prevention programmes; all that will make positive
impact on the quality of life, independence and capacity to work of those people. The initiatives
dealing with improving and preserving of health at work will lead to reinforced prevention of
occupational and work related diseases, ensured accessibility of high quality occupational health
care services thereby enabling to improve both physical and mental health status of the elderly
employees and to prolong their healthy and productive age.
Specialists from the identified health care areas will enhance their qualification, skills
and competencies and will gain practical skills that are needed to address the increasing needs of
the people for health promotion and care as a result of ageing of the society.
Support will be directed at the creation and provision of non-institutional and
community-based services to make sure Lithuania provides care services that are alternative to
the institutional ones (including services that are important for the deinstitutionalisation process)
and services for people looking after their family members so that caregivers could have better
opportunities to acquire or improve their professional qualification and/or participate in the
labour market.
In order to help families in difficulty or crisis to tackle poverty and crisis situations,
developments will be promoted in relation to services for families and their children
(psychological support, training, consulting, development of parental skills, self-help groups;
social, health and other services to help parents overcome their addictions, refuse violence,
acquire social skills and integrate into the society; psychological support and other services
(including after-school education, healthcare, etc.), for children from risk or vulnerable families,
also for children with behavioural, emotional and mental disorders. To tackle the problem, a
system of integrated services for families will be created in all municipalities; the services will
be better tailored to the individual needs; the coverage of beneficiaries will increase.
The framework of social services will be reinforced by investing into the monitoring,
planning and forecasting of the service quality, supply and demand; the promotion of
cooperation between budgetary institutions that organise and provide social services and NGOs;
the improvement of competence among the staff administering and providing social services
both in budgetary institutions and NGOs, etc. The reinforcement of the social services
framework will be pursued following the common EU quality principles and methodological
guidelines provided in the Voluntary Quality Framework for Social Services 89 facilitating
organisation, monitoring and assessment of social services.
Investments will aim at social enterprises, social business development, promotion of
corporate social responsibility, social dialogue and employment/social policy partnerships,
covering the public and private sectors, organisations of employers and workers, NGOs. The
ESF supports the implementation of community-led local development (CLLD).
The following results are expected to be achieved by ERDF investments:
89
Social Protection Committee, A Voluntary Quality Framework for Social Services, SPC/2010/10/8 final.
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The infrastructure of health, social and educational institutions will be further upgraded,
thereby contributing to the reduction of national, regional and local development inequalities as
to health and transition from institutional to community-based services. An important systemic
shift will be the deinstitutionalisation of social services for the disabled in institutional nursing
homes and for children in foster homes by expanding the network of community-based and/or
non-institutional services for these groups. Deinstitutionalisation will be implemented under the
Action Plan 2014-2020 for the Transition from Institutional Care to Family and CommunityBased Services for the Disabled, Children Deprived of Parental Care, and with regard to the
Common European Guidelines on the Transition from Institutional to Community Based-Care.
Investments will be allocated to the infrastructure which ensures independent life, integration
into the society and high-quality services. In exceptional cases when community-based services
model cannot be applied, developments are intended for the infrastructure and quality of bodies
that provide specialised institutional nursing and care services to individuals who are not capable
of taking care of themselves and return to the family/the community.
Some investments will be aimed at increasing the affordability of social housing,
modernising and developing nursing facilities for elderly people in the community, improving
conditions for the provision of services by municipal child protection services and municipal
workers working with families at social risk, expanding the infrastructure of non-institutional,
community-based services for vulnerable groups and families that fall outside the
deinstitutionalisation process. Development of social housing is envisaged in those
municipalities of Lithuania, where the number of people (families) waiting for a social housing
per one thousand residents is larger than the country’s average. Social services (not covered by
deinstitutionalisation) will be developed in the regions, where inconsistencies of their
development still persist.
The supported activities (they will be comprehensively coordinated with the ESF
investments) will help to reduce the territorial divide in terms of accessibility of public and
personal health care services and differences in health, and will help to develop services relevant
for the people from social and risk groups, will allow for longer and healthier life, smaller risk of
premature deaths, social exclusion and poverty of the people from the target groups.
Infrastructure enabling to ensure efficient and consistent access to high quality health care
services (health enhancement, disease prevention and early diagnosing, specialised medical
services) for the people of the identified target territories and target groups will be developed.
Investments will also be channelled into the introduction and development of (infrastructure and
information) models for organisation, provision and management of health care services and
timely help by supporting innovative and efficient solutions and technologies aimed at raising
health literacy, providing consulting, medical treatment and monitoring of the target groups of
the population and maintaining of their quality of living. The regions with the highest disparities
in terms of health of the people and accessibility to their health care will include territories and
municipalities where the spread of premature deaths due to basic health problems (circulation
system, cerebrovascular diseases, malignant tumours, external death causes) is larger than
Lithuanian average. Target groups of the population include: 1) people living in the
municipalities of the country with highest degree of premature deaths due to basic non-infectious
diseases; 2) people of certain social risk groups who due to social and economic reasons
(unemployment, poverty, etc.) and harmful habits (consumption of alcohol, etc.) suffer from
certain diseases (tuberculosis, drug addiction) and people with limited access to health care
(disabled, etc.); 3) children (up to 18 years of age) because due the current economic, social
circumstances, such an vulnerable social and economic situation of the family, employability
perspectives, they face larger risk of social exclusion and adverse impact of these factors on their
heath; 4) elderly people (55 years of age and above), with the view to maintaining good health of
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ageing people for as long as possible, improving the quality of their lives and enabling them to
stay active at work and within the community, and live independently.
Investments into the social and health infrastructure are being planned drawing on the
experience from 2007-2013 period, investments made, the development needs envisaged for
2014-2020, and on the assessed demographic tendencies with a view to ensuring accessibility,
efficiency of the social and health care services and the sustainability of the investments.
Public infrastructure in smaller cities, towns and larger villages (residential areas with
the population from 1,000 to 6,000, except for municipal centres) will be modernised to increase
the accessibility of the key services (investments target the conversion of inefficiently used
facilities, the improvement of functionality). Rural areas and small cities will be able to provide
more diversified, higher quality and affordable services (the focus is on community-based
services), reducing inequalities in the quality of living environment, which is the reason why
many rural areas are not able to attract people with higher income, which, in turn, results in
bigger social exclusion.
The following results are expected to be achieved by EAFRD investments:
With regard to priority 6 of the EU rural development policy52, in the 2014-2020
programming period EAFRD investments will be used for upgrading small-scale infrastructure,
service provision and the quality of life in rural areas. The EAFRD investments will be
earmarked for the construction and improvement of local public roads, streets and sections
thereof in rural areas, where such investments contribute to the improvement of local economy
and water management; the creation and improvement of other public infrastructure, including
objects, parks, squares with historical, ethno-cultural and architectural value, other landscape
components, leisure infrastructure, contribution will be also be made to preservation and
fostering of ethnic heritage of Lithuania.
The EAFRD will continue to support the implementation of LEADER initiatives, in
particular social entrepreneurship of rural communities, social inclusion through community
actions promoting the transition from institutional to community-based services. More about the
implementation of the LEADER initiative, see Section 3.
1.3.10. Investing in education, skills and lifelong learning
Two of the eight targets of the Europe 2020 Strategy are directly related to education:
reducing school drop-out rates to less than 10% and increasing the share of 30-34 year-olds with
tertiary or equivalent educational attainment to at least 40%.
Investments into education infrastructure are being planned drawing on the experience
of 2007-2013, investments made, the development needs envisaged for 2014-2020 and on the
basis of the assessed demographic tendencies to ensure accessibility, efficiency of education
services as well as sustainability of investments.
The Lithuanian NRA sets out a target to ensure that the share of early leavers of the
education system aged 18-24 with only basic education does not exceed 9% in rural areas.
Methodical and targeted efforts of public institutions, municipalities and school communities to
help students complete general education programmes and/or acquire a professional qualification
will be supported in schools with an increased drop-out risk.
Another key target in the 2014-2020 period is to ensure more places in preschool
institutions, first of all in municipal institutions, by adapting unused premises of general
education institutions, also by promoting initiatives of enterprises and other private entities to
organise preschool groups.
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Informal education helps preserve students in a formal education system and
complements it. It is therefore important to expand the accessibility and diversity of informal
education, putting an emphasis on science and technology-based education among children.
A school performance assessment system will help identify students’ needs, adapt the
content of education, make results public, provide assistance to students with difficulties and
promote the performance of educational institutions. Closer attention will be paid to the
development of teachers’ competence. In the coming programming period, teachers should have
more targeted and more individualised qualification development, forming educational process
modernisation groups to support and implement qualitative changes in their schools.
A priority area of general education remains the development of core competencies
(mother tongue, foreign languages, mathematics and science, and digital competence) and basic
competencies (learning to learn, social and civic competence, initiative taking and
entrepreneurship, and cultural awareness and expression).90 In addition to that, drawing on the
need to enhance technological competencies of the teachers, it is planned to implement the
Action Plan for Introduction of Information and Communication Technologies into General
Education and Vocational Training 2014-2016.
The following results are expected to be achieved in preschool, non-formal and
general education:
ERDF investments will be used for improving the accessibility of high-quality
education to all children, irrespective of their place of living. Support will be provided to state
and municipal initiatives designed to optimise a network of schools implementing general
education programmes and to use resources of preschool education more rationally. Investments
will be targeted at upgrading buildings and the environment of perspective educational
institutions to make the educational infrastructure complex and completed, including
opportunities for developing competences in technical creativity and art, sports and science,
providing schools with modern learning tools, while enabling students and teachers or mentors
access educational institutions from remote areas. Investments will be tied to the commitment by
municipalities and schools that receive investments to announce and improve learning results of
their students and cut drop-out rates. Investments into the quality of scientific and technological
education will contribute to better learning results and more students who choose programmes of
natural, technical or applied sciences.
ESF investments will be used for improving the competence among teachers and staff
of educational institutions, and the content and methodology of education, ensuring close links
with investments into teaching facilities.
The quality and openness of higher education will be improved. To maintain the
targets established in the Europe 2020 Strategy and the NRP, Lithuanian higher education
institutions must remain attractive to Lithuanian and foreign students, the country’s economy and
society must be provided with a skilled labour force capable of adapting to constant changes and
opportunities for continuous self-development through a lifelong learning system. To this end,
cooperation with other countries will be expanded, primarily through the EUSBSR, the objective
‘Increase Prosperity’ of which is designed to promote cooperation among educational institutions
from different regions, the mobility of students and teachers in the region, etc.
Higher employment rates among persons with higher education, especially graduates,
could be achieved through a better quality of studies as required by the labour market,
continuous, systemic and effective management of the quality of studies, and attraction of more
90
Commission Staff Working Paper ‘Schools for the 21st Century’, Brussels, 11.07.07 SEC(2007)1009.
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individuals to higher education, including those who are participating in lifelong learning. All
these results will be achieved with a help of ESF and ERDF investments.
The following results are expected to be achieved in higher education:
ESF investments will raise the quality of studies and ensure its proper and efficient
management. The accessibility of studies will be increased and more people will be attracted to
higher education. The employment rate of graduates will be improved, and competencies and
skills of people with higher education will meet the needs of the labour market and the public.
Better quality of studies will be achieved by adapting studies to the needs of the labour market,
developing innovative teaching methods and technologies, paying close attention to practical
training, ensuring high-quality content of education and relevant programmes, training teachers
and researchers and improving their professionalism, increasing internationalism of studies,
systemically involving social partners into the formation of the content and the acquisition of
practical skills. Regular monitoring of what the labour market needs and proper management of
studies would also allow the areas studied (social, natural, technological, engineering sciences)
meet the needs of the labour market better. To achieve evidence-based study quality
management and performance-oriented studies, support will be provided to strengthening
external assessment (of study programmes and institutional), performance assessment, selfassessment and accreditation, monitoring systems. It will help enhance the quality of studies in a
continuous and systemic manner, refine the management of studies and higher education
institutions, cut costs and make higher education institutions more efficient. This, in turn, will
lead to higher employment rates among alumni, constant refreshing of studies and adaptation to
the needs of the labour market and the public, more efficient use of public investments allocated
to higher education and increased inclusion into higher education-related lifelong learning.
More people will be attracted to higher education by increasing the accessibility of
studies, especially for underrepresented and vulnerable groups, and the inclusion of studies into
the lifelong learning system. Better accessibility of studies will be ensured through flexible
modes of studies, adult-friendly modules and studies, developed studies of social and financial
incentives for underrepresented social groups.
ERDF investments will be targeted at upgrading the learning environment, installing
modern working spaces for teachers, concentrating and adapting higher education and research
facilities for common use of several higher education institutions and integrating them into the
infrastructure of integrated higher education, research and business centres (valleys). The aim is
to mobilise investments for the development of university and college campuses.
As set out in the National Programme for the (Social, Cultural) Development of Studies,
Research and Development for 2013-2020, extensive development, scattered potential and
resources of higher education and research institutions call for focusing of investments to enable
emergence of new Lithuanian universities meeting the standards of the best European and global
universities. The key investments therefore will be directed at the concentration of human capital
and other resources to create the necessary higher education and research infrastructure, integrate
it into the infrastructure of scientific centres, form campuses by specialisation of higher
education institutions, develop complex infrastructure and infrastructure of general use (for
several higher education institutions or together with vocational education and training
institutions), set up working spaces for teachers.
The following results are expected to be achieved in R&D by ESF investments:
The potential of human resources will be reinforced and more concentrated in R&D,
increasing the number of individuals with a doctoral degree in science and the number of
researchers who have improved their skills and are using them in their activities. Other factors
that will have a major role include financing training and qualification development of young
researchers, promoting interinstitutional, intersectoral and international mobility among
scientists and other researchers, developing general capacities of researchers, allocating support
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Partnership Agreement
to R&D activities that contribute to capacities, skills and competencies of researchers and R&D
personnel.
R&D human resources will build stronger relations with the private sector, higher
education institutions and other research institutions abroad. It will be facilitated by activities
promoting the creation and operation of academic community-based and thematic networks,
investments into professional development of scientists and other researchers through hands-on
experience in R&D activities performed together with local or foreign partners both in the
private and public sector, the stimulation of multidirectional (outgoing and incoming) and multipurpose (interinstitutional, intersectoral and international) mobility among researchers.
Improvements will be made to working conditions of scientists and other researchers.
Measures implemented in an integrated way will increase the attractiveness of doctoral studies in
Lithuanian higher education institutions, ensure adequate student grants and the possibility to
carry out doctoral activities in knowledge-intensive enterprises, facilitate financing of research
and internships abroad, etc., the access to such opportunities for all Lithuanian researchers. The
measures dealing with training of researchers, enhancement of qualification and competences are
going to be coordinated with the smart specialization process, i.e. much focus will be placed on
the researchers and on the training of doctoral students of specific areas able to contribute to the
achievement of the RDI priorities. Measures for the reinforcement of international cooperation of
researchers and improvement of their skills to participate in international RDI programmes have
also been envisaged. Lithuania is also facing a lack of qualified researchers in certain science
sectors significant to the economy; this problems is to be addressed by both supporting doctoral
students able to solve problems in the relevant science areas and by attracting high level
international researchers from abroad for short-term and long-term stays. These activities will be
undertaken following the Commission Recommendation of 11 March 2005 on the European
Charter for Researchers and a Code of Conduct for the Recruitment of Researchers.
The following results are to be achieved in vocational education and training:
ERDF investments into further modernisation of sectoral practical training centres in
regions with unmet high demand for high-quality training for certain professions will increase
the availability and coverage of vocational and adult training.
Other activities in the 2014-2020 programming period include developing sectoral
practical training centres, renovating dormitories of vocational education and training institutions
with centres will be renovated to accommodate students from other institutions and participants
of continuing training, and upgrading other related learning spaces in such centres. Sectoral
practical training centres will be used by vocational education and training institutions from all
over Lithuania, also by some of the higher education institutions that are implementing
technological study programmes. The infrastructure required for high-quality basic professional
training in other vocational education and training institutions which do not have a sectoral
practical training centre will be expanded in parallel. In this way young people and adults will be
offered high-quality learning opportunities close to their place of living, with mobility
opportunities for completing their practical training at a highly-technological sectoral practical
training centre. After completing practical training modules, students will be ready for
integration into the labour market and final practical training at a specific employer.
The network of centres for adult education is well-developed, but learning spaces and
means are outdated and unattractive for students and those who are thinking about completing
the general education programme. For this reason, some of the centres for adult education will be
modernised in the 2014-2020 programming period so that more adults opt for completing the
general education programme.
ESF investments will increase the attractiveness and quality of vocational training
and adult education as well as their conformity to the needs of the labour market. They will
also increase the flexibility of the vocational and adult education system and ensure conformity
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of vocational and adult education and qualifications acquired to the needs of the labour
market. Support will also be provided to the finalisation of the Lithuanian Qualifications
Framework and the formation of a modern educational content (by drafting vocational training
standards, vocational training modular programmes and teaching tools); the development of a
system for the assessment and recognition of competences and qualifications acquired by various
means; the monitoring and research of vocational training and adult education; the introduction
of innovation in the management and tools of vocational training and adult education. In the
2014-2020 programming period, professional qualifications will be developed among
pedagogical workers from vocational education and training institutions in Lithuanian and
foreign higher education institutions; they will also have more mobility opportunities for
practical training at employers. As a result of these measures implemented in cooperation with
social partners, the vocational training system will be better adjusted to the needs of the labour
market. To address EU Council Recommendation 2014 to Lithuania to tackle large
unemployment of low-skilled and long-term unemployed people, investments will be directed
towards development of apprenticeship programmes to improve their quality and expand their
coverage.
The training supply will be increased by improving children’s learning motivation and
changing the conviction of adults that it is too late for learning. ESF investments will raise
awareness on the latest learning objectives, opportunities and benefits. Investments will be
targeted at the provision of high-quality career services at all levels of education, the
promotion of lifelong learning in cooperation with social partners.
To create conditions and incentives for lifelong learning, adults will have better
opportunities for participating in different learning activities, and participants of formal
educational programmes for acquiring good practical skills.
The new programming period will see investments into activities that encourage
inactive adult groups (unskilled or lower-qualification individuals) to participate in lifelong
learning, improve competences and qualifications of public service workers. In addition to that
more opportunities will be granted for the elderly people to acquire the first higher education
degree; learning opportunities for the elderly people will be expanded with a view to ensuring
their involvement in the life long learning activities.
Since advertisements very often job require practical skills, one of the aims is to provide
those who are participating in formal educational programmes with a better access to highquality practical training. Funding allocated to the acquisition of practical skills for those who
are participating in formal education programmes will have the opportunity to carry out some of
their practical training at highly-technological sectoral training centres, and complete their
preparation for the labour market doing traineeships.
The following results are expected to be achieved in vocational training by EAFRD
investments:
With regard to priority 1 of the EU rural development policy, EAFRD investments will
be used for developing lifelong learning activities and continuous vocational training in
agriculture, forestry and rural areas, in particular by refreshing and acquiring skills to face new
challenges related to the introduction of innovation and the development of sustainable
agricultural and forestry sectors. They will also help the rural population to engage in nonagricultural activities, thereby reducing social and economic exclusion in rural areas.
Support to training of individuals who are working in the agricultural and forestry
sectors on business organisation and environmental protection as well as to training of young
farmers while they are settling down will increase the competitiveness of holdings, improve their
environmental functions, contribute to a smoother generational renewal in the agricultural and
forestry sectors. Around 78,000 participants are expended in training activities within the 20142020 programming period.
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As part of training and knowledge transfer and provision of consulting services in
agricultural and forestry sectors, support will be provided to farmers and owners of forests to
enable them adapt to the changing farming requirements; complementarity with regard to
sustainable development will be ensured.
Representatives from the Lithuanian fisheries sector will have a better access to
opportunities offered by the lifelong learning and professional development system. The ESFfunded adult training system as well as the existing training centres with the methodological and
subject material, competent adult teachers for adult training and the voucher system will be used
for this purpose.
As to the development of human resources in the 2014-2020 programming period,
continuous promotion of professional qualification, professional mobility and ability to switch
rapidly to other economic activities will be ensured through the improvement of professional
qualifications and competence of human resources in new technology-driven enterprises and
SMEs. For this purpose, a voucher system will be created. Also, support will be provided to
projects aimed at raising expertise and developing sectoral competence of human resources.
Lithuania intends to create and implement a forecasting system that predicts mediumterm needs for human resources. This system will help identify the main gaps between the
supply of and demand for the labour force as well as forecast medium-term (from 5 to 7 years)
needs of the labour market. The results will be used for professional orientation and the creation
of professional orientation products for target groups.
Moreover, a fully-fledged instrument will be created based on the expanded version of
the Lithuanian Classification of Occupations (based on ISCO-08). This instrument will compare
the professional structure of the labour market at the international and national level. A
monitoring system for links between qualifications of human resources and vacant positions is
also in plans.
The following results are expected to be achieved in human resources development
by ESF investments:
The competitiveness of working human resources will be increased by ESF investments
into the improvement of qualifications and competences of corporate human resources, the
creation and development of a forecasting system that predicts medium-term needs for human
resources, the refinement of the Lithuanian Classification of Occupations and the monitoring of
links between personal qualifications and vacant positions.
1.3.11. Enhancing institutional capacity and ensuring efficient public administration
Investment areas for 2014-2020 correspond to the goals and objectives established by
the Public Management Improvement Programme 2012-2020 for the improvement of public
management. The action plan 2013-2015 for the implementation of this programme contains
specific measures/projects focused on more open public management, more active involvement
of the society in public administration processes, higher quality of services, more efficient
performance of public administration and stronger public service. This plan also includes EU
Structural Funds-funded measures/projects for the 2014-2020 programming period, which will
allow for coordinated and targeted planning and implementation of these measures/projects at
the national level.
The following results are expected to be achieved by ESF investments:
The public administration will be more result-oriented, i. e. investments will be
aimed at increasing operational efficiency of public administration institutions (application of
evidence based governance measures for the purposes of development, improvement of law
enforcement processes, increasing openness of public administration processes and promoting
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society's participation, planning and implementing of national public administration reforms (in
particular with the view to addressing EC Council Recommendation 5 for 2014 regarding
reforms of public-owned enterprises, efforts will be made to enhance public property and
corporate management competencies), developing of the relevant information systems that are
needed for proper performing of the state's functions, and installation of these systems in public
institutions in charge of shaping and implementing policy of this area. The activities related to
upsurging the operational efficiency of public administration institutions, applying evidencebased administration tools and implementing national public administration reforms will
contribute to raising of the governance efficiency index (in 2011 – 21st position in the EU, target
for 2020 – 15th position in the EU).
As to the openness and transparency of public administration processes, increasing
numbers of people are expected to express their opinion on important issues and be informed on
the performance of courts and municipalities. Investments should help improve indicators of the
public trust in public administration. The investments to address the recommendations provided
in the EC anti-corruption report and for the implementation of other anti-corruption measures
will improve the Lithuanian corruption perception index from 57 points (2013) up to the average
corruption perception indexes of the EU Member States.
The quality of services will improve and services will meet the needs of the public
better. Service quality standards will be adopted for this purpose. Public administration should
draft citizens’ charters (the target for 2020 is 90%), be more active in measuring public
satisfaction with the services provided, apply ‘one stop shop’ more effectively, etc. The transfer
of services into the cyberspace will increase the accessibility of services to the public. These
activities aimed at raising the quality of services are expected to help improve the administrative
service provision and service efficiency coefficient (in 2011 it stood at 0.85; the target for 2020
is 0.95).
The business regulation environment and conditions for fair competition will improve
through investing into cutting administrative and/or other regulatory burden for residents and
business, implementing other better regulation measures, increasing the effectiveness of
supervision of the performance of economic entities, refining public procurement and justice
systems. By 2020, Lithuania expects to be ranked at least 13th among EU Member States in
terms of regulatory quality (it was the 17th in 2011) to increase the share of enterprises that are
satisfied with controlling authorities. As to the public procurement system, activities aimed at
transparency and efficiency in procurement activities include a wider application of centralised
and electronic public procurements, the upgraded Central Public Procurement Information
System, etc. It is expected that in the justice area there will be pre-conditions developed that
will enable simpler and more efficient resolution of disputes by investing into the
development of the framework of alternative dispute resolution methods and promotion of their
application. All this will help to decrease the number of pending civil disputes.
Human resources management in the civil service will be updated through
investments into advanced human resources management instruments (procedures/standards) in a
number of personnel management areas, the optimisation of wage and motivational systems, the
strengthening of the chain of higher ranking and managing civil servants and public officers, the
building of competences among individuals employed in public administration, etc. It is planned
to implement a competence-based human resources management model with improved selection,
career planning, wage, motivational, training systems and novel high-quality senior executive
management in the civil service. Investments will be used for reinforcing competences in the
civil service: building managerial and leadership capacities among political leaders, civil
servants and officials (including judges and public prosecutors), expanding strategic thinking
knowledge and skills among civil servants. Professional competences that are required for
specific professional duties and functions will be improved as much as necessary for challenges
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Partnership Agreement
and changes in state and municipal institutions and agencies. Competence centres of different
strategic areas are going to be established in public institutions in charge of shaping and
implementing specific policies, for instance, related to public and private partnership,
macroeconomic forecasting and analysis, energy (or individual sections of it), public property
and corporate management.
With a view to achieving the goals and objectives of improvement of the public
administration, the synergy of the EU Structural and Cohesion Funds investments will be
ensured by coupling ESF investments under the thematic objective 11 and ERDF investments
under the thematic objective 2. ERDF funding will be used to develop the infrastructure and IT
solutions needed for the implementation of ESF supported optimised public administration
processes (in particular, provision of public services and increasing openness of public
administration processes)
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1.4. Indicative allocations by thematic objective for each ESI Fund
1.4.1. Indicative allocation of financial resources by thematic objective for each of the ESI
Funds
Table 2. Indicative allocation of support by the Union by thematic objective for each of the ESI Funds (EUR)
(preliminary)
ERDF
ESF
Cohesion
Fund
(1) Strengthening research,
technological development and
innovation
678,878,835
0
0
(2) Enhancing access to and use
and quality of information and
communication technologies
(3) Enhancing the competitiveness
of the small and medium
enterprises (SMEs), the
agricultural sector (for the
EAFRD) and the fisheries and
aquaculture sectors (for the EMFF)
(4) Supporting the shift towards a
low carbon economy in all sectors
244,037,284
0
0
3.766.520
0
531,603,253
0
0
658.634.938
31.230.332
517.201.697
0
454.118.432
146.124.564
325.750
4,064,010
0
104,842,447
196.764.164
0
189,613,699
0
539,257,440
196.764.164
17.674.645
390.625.213
0
763.156.109
0
0
421,299,136
275,504,430
0
67.797.724
10.395.562
315,540,145
220,294,386
0
157.712.935
0
208,548,495
455,313,921
0
19.923.540
0
0
150,359,184
0
0
0
0
25,812,183
187,543,198
64.523.530
3.805.933
3,501,411,767
1,127,284,104
2,048,917,626
1.536.281.010*
63.432.222
Thematic objectives
(5) Promoting climate change
adaptation and risk prevention and
management
(6) Protecting the environment and
promoting resource efficiency
(7) Promoting sustainable transport
and removing bottlenecks in key
network infrastructures
(8) Promoting employment and
supporting labour mobility
(9) Promoting social inclusion and
combating poverty
(10) Investing in education, skills
and lifelong learning
(11) Enhancing institutional
capacity and ensuring an efficient
public administration
Technical assistance
TOTAL:
EAFRD
EMFF
0
24.268.931
*The total EAFRD amount does not include investments made during the transition periods into the measures
of the 2007-2013 programming period which will continue in 2014-2020 programming period as well (about 0.077
billion EUR).
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Partnership Agreement
Table 3. Funds allocated to the Youth Employment Initiative under thematic objective 8
Amount allocated (EUR)
Source of funding
Special allocations of the Youth Employment Initiative
31,782,633
Appropriate ESF funding
31,782,633
Table 4. Allocations to technical assistance by category of region and fund
Fund
Allocations of
technical assistance
(EUR)
Category of region
Share of technical
assistance by fund
(%)
ERDF
Less developed
0
0
ESF
Less developed
25,812,183
2.3
Cohesion Fund
-
187,543,198
9.2
EAFRD
-
64,523,530
4.0
EMFF
-
3,805,933
6.0
Table 5. ESF share in all the Structural Funds (ESF and ERDF)
ESF share in the Structural Funds in accordance with
EU Structural and Cohesion Funds Operational
Programmes 2007-2013
Requirement for the minimal ESF share applicable to
Lithuania
Intended ESF share in the Structural Funds 2014-2020
23%
24.2%
24.35%
Contribution to climate change has been measured in accordance with the methodology
approved by the Commission, where certain expenditure categories have concrete coefficients of
contribution to climate change mitigation. Preliminary EU support to climate change mitigation
amounts to EUR 1.897.945.506. At least 30% of EAFRD will be earmarked for climate change
mitigation, including environmental investments. About 20% of EMFF funding is provided for
the achievement of climate change objectives.
It should be noted that in Table 2 ‘Indicative allocation of support by the Union by
thematic objective for each of the ESI Funds (EUR)’ the indicated EAFRD funds exclude the
EAFRD funds earmarked for funding of the continued liabilities under the RDP 2007-2013
measure ‘Early retirement’ in 2014-2020 period, because these continued liabilities do not
contribute to the achievement of the ESI funds objectives set for 2014-2020.
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Partnership Agreement
1.5. Application of horizontal principles
1.5.1. Partnership principle
Partnership is one of the most important principles guiding the implementation of the
EU cohesion policy followed both on the EU and on the national level.
In the course of preparations for the 2014-2020 programming period partners are getting
increasingly interested in the participation in the preparatory and implementation processes.
Taking into consideration the increased interests and following Article 5 of the Common
Provisions Regulation, new partnership promotion initiatives have been undertaken which first
of all include drafting of methodological documents in this area and organisation of public
discussions with the partners. The general list of partners, including partners involved in the
preparation of the Partnership Agreement, Operational Programme for the EU Structural Funds’
Investments in 2014-2020, Rural Development Programme and Fisheries Operational
Programme is provided in Annex No 1.
In March 2012, the Managing Authority of the EU Structural and Cohesion Funds
organised a discussion ‘How to increase the involvement of partners in the planning and
implementation of the EU structural assistance?’ which was attended by socio-economic
partners and representatives from bodies responsible for administration of the EU Structural
Funds. The discussions led to a decision to prepare a Partnership Standard, defining the
minimum requirements to the application of the partnership principle in the planning and
implementation of the programmes financed by the EU Structural and Cohesion Funds in
Lithuania. The standard was drafted in April 2012. It defines levels, scope, forms of partnership,
the selection of partners, their rights and responsibilities, deadlines for consulting and forms of
communicating the outcomes, the efficiency evaluation of the partnership principle.
To present and clarify the requirements set in the Partnership Standard as well as to
provide advice concerning the application of the Standard in practice, the Managing Authority of
the EU Structural and Cohesion Funds in July 2012 initiated a more extensive document called
Guidelines on the Application of the Partnership Principle in the EU Structural Assistance
Process (the Guidelines). The document is published on the website at www.esparama.lt and is
available to everyone concerned. The Guidelines have been prepared on the basis of EC staff
working document adopted in April 2012 concerning implementation of the partnership
principle91; in the beginning of 2014, as the Common Provisions Regulation came into force, that
document served as the basis for the European Commission to draft European Code of Conduct
for Partnership.
Guidelines are a practical manual for the institutions in charge of preparation of the
Partnership Agreement, the Operational Programme for the Structural Funds' Investments in
2014-2020 and for the administration of the EU Structural and Cohesion Funds, as well as for the
partners taking part or intending to take part in the EU structural support process.They explain
Commission Staff working document ‘The partnership principle in the implementation of the Common Strategic
Framework Funds - elements for a European Code of Conduct on Partnership’ [SWD(2012) 106 final]. The
document can be downloaded from the following link:
http://ec.europa.eu/regional_policy/sources/docoffic/working/strategic_framework/swd_2012_106_en.pdf
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who, how and when should be involved in the implementation of the partnership principle and
also provide information on ministerial contact points in charge of the application of the
partnership principle. The Guidelines have been drafted in a way that ensures their relevance for
the 2014-2020 programming period, too. The draft Guidelines were sent to a wide circle of
socio-economic partners for consultation. The Guidelines also present the main EU and national
legal provisions applicable to the 2007-2013 and 2014-2020 programming periods, explain the
value-added of partnership, introduce partnership principles (openness, involvement,
transparency, efficiency, mutual responsibility) and overview the main EU and national
documents setting the minimum requirements for the application of the partnership principle
(proposals by the European Commission concerning the European Code of Conduct on
Partnership and the recommendations concerning the Partnership Standard issued in Lithuania).
The Guidelines place much focus on the application of the partnership principle in practice:
discuss the options for partners to be involved in the decision-making process, set out partner
selection principles and criteria, present forms of partnership, list rights and obligations of
partners and discuss the actions to be taken by competent institutions to strengthen partnership.
In 2010, a Commission for the EU Structural and Cohesion Funds 2014-2020 (the
Commission) was established from representatives of ministries, implementing bodies, socioeconomic and regional partners for the drafting of the Partnership Agreement and the
Operational Programme for the Structural Funds' Investments in 2014–2020. 23 of 52 members
of the Commission represent socio-economic and regional partners. The Commission was
formed and partners were selected on the basis of their target groups, i.e. it was important to
ensure that the partners involved in the Commission had as wide representative role as possible.
The selection of partners is carried out by competent authorities within their relevant limits of
competence (for instance, the selection of partners for sectoral partnership was carried out by
sectoral ministries). Potential partners willing to participate in the EU Structural and Cohesion
Funds process can send their motivated applications to competent staff of relevant authorities for
the involvement into a partnership structure (committee, commission, etc.).
The selection of partners has been based on the following criteria:
− Relevance: partners must be clearly related either with the issue to be addressed or with
its solution. Relevant partners may differ subject to the stage of the EU Structural and Cohesion
Funds process and the issue being addressed;
− Proportionality: representation of all relevant partners (territorial, socio-economic,
NGOs) must be ensured, there shall be no domination by any of the groups;
− Scope of representation: partners representing wider rather than narrower individual
interests shall be involved.
For instance, to ensure the participation of LAGs in the implementation of CLLD
measures in 2013, representatives from LAG networks in rural development and fisheries areas
were also added to the Commission. In order to properly prepare for the 2014-2020
programming period and to ensure closer cooperation between public authorities and the society,
sectoral ministries (for instance, Ministries of Energy, Agriculture, Transport and
Communications) are pursuing cooperation with their partners. For example, ad-hoc working
groups with representatives from public authorities and social, economic and/or regional partners
interested in the operation of a certain sector are being established. The above form of
cooperation is applied for the purpose of identification of eligible priorities, activities and
measures which would best contribute to the achievement of the identified objectives both at
national and at EU level.
Public consultation on national strategic documents, namely the Partnership Agreement
and the Operational Programme for the EU Funds’ Investments in 2014-2020, was launched and
continued from June to September 2013. The public consultation event attracted about 170
representatives from research, business, culture, governmental institutions, NGOs, social,
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economic and regional partners. In addition to that all stakeholders were provided an opportunity
to present their comments and suggestions with regard to the draft documents on the
www.esparama.lt website.
The suggestions given by social and economic partners during the public consultation
can be classified into two groups: proposals with regard to areas which should receive
investments and proposals with regard to improvement of policy implementation. Social and
economic partners proposed to pay more attention and channel greater deal of investments into
the following areas:
 Promote private investments and increase the share of innovative goods and services in
the companies’ turnover;
 Apart from biomass, invest in other RES (wind, sun energy, biogas) and introduce RES
driven technologies as part of renovating public buildings and multi-apartment
buildings;
 Assess the potential of other areas (for instance, transport) to contribute to the
achievement of Lithuania's energy efficiency commitments by 2020;
 Pay adequate attention to handling of radioactive waste; also pay more attention to
handling of hazardous household waste, large-scale waste, biodegradable waste, and
finance refurbishing of abandoned territories;
 Mainstream measures for promotion of gender equality and reducing violence in close
environment;
 Promote employability (including in rural areas) and participation in labour market by
combining the ALMM with increased efficiency of social benefits system;
 Promote active cooperation between higher education institutions and business,
internationalisation of the studies;
 Provide better conditions for mobility and employability of young researchers in private
sector, etc.
For the sake of better implementation of the current policy social and economic partners
have proposed to:
 Ensure dialogue with local communities in the course of planning and implementing the
measures and in the course of project selection; continue the good practices of the 20072013 programming period in relation to implementation of local development strategies
in rural areas by using the exception provided for in the Common Provisions Regulation
concerning the size of these territories;
 Consider the role and potential of NGOs in relation to the implementation of the
planned measures (in particular, improving of social inclusion);
 Apply the ‘polluter pays’ principle in the private sector to a wider extent;
 Taking into consideration the type of each project, consider possibilities of applying
financial instruments or low-intensity grants;
 Clearly define the concepts used (for instance, smart networks) in order to avoid
different treatment between the applicants , implementing bodies and EC;
 When investing into vocational training infrastructure, consider the possibility of
applying private and public partnership models;
 Chose relevant indicators, oriented towards the desired change thereby reducing the risk
of only formal achievement of the indicators.
Taking into consideration the above proposals of the social and economic partners, the
Partnership Agreement and the Operational Programme of the EU Structural Funds’ Investments
in 2014-2020 were adjusted. Actions to promote equality between men and women and the
relevant indicators (for instance, the share of people having taken part in events promoting
equality of men and women and combating discrimination and claiming that they will be
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applying the gained knowledge and skills in practice) were included. To increase employability
in rural areas, coordination with the RDP 2014-2020 investments directed towards promoting
employability of among people in rural areas is to be ensured; actions have been envisaged,
whereby renovation of public buildings and multi-apartment buildings will be linked to energy
efficiency. Funding for a project dealing with liquidation of radioactive waste storage in
Maišiagala has been envisaged.
Taking into consideration the methodological documents on partnership and the needs
expressed during the discussions, the partnership will continue to be promoted in the future by
safeguarding the opportunities for the partners to more actively and efficiently participate in the
implementation, monitoring and evaluation of the EU Structural and Cohesion Funds during the
2014-2020 programming period. To this end the following initiatives of the Managing Authority
for the EU Structural and Cohesion Funds will be implemented:
1) In the website www.esparama.lt dedicated to the EU support there will be a
separate column for partners launched, where the information relevant to the partners will be
posted (methodological guidelines, information about events, draft legislation for commenting).
Partners will have to register in this column (this will help to draw a data base on the partners
interested in EU Structural and Cohesion Funds investment process) and will be able to comment
the posted draft documents (for instance, draft instructions or project rules prepared by the
ministries).
2) Administrative capacities of the partners will be reinforced (for more detailed
information please refer to Part 2.5 of the Partnership Agreement)
3) Partners will be given the possibility to initiate and organise meetings, discussions
and sittings that would contribute to better implementation of the Operational Programme for the
EU Structural Funds' Investments in 2014-2020; these events would be funded from the
technical assistance money.
It is expected that these initiatives will help to ensure closer cooperation with regional,
local, urban and other public authorities as well as with economic and social partners and
organisations representing civil society, including environmental partners, NGOs and entities
engaged in promotion of equality of men and women and non-discrimination.
The Managing Authority of the EAFRD (the Ministry of Agriculture) follows the
European Code of Conduct on Partnership, published by the European Commission, in the
drafting of the Partnership Agreement and the RDP 2014-2020. To ensure partnership in the
drafting of documents for the use of EAFRD resources, the existing partnership framework was
used – the Lithuanian Rural Network built in the 2007-2013 programming period for the purpose
of the implementation of the RDP 2007-2013 funded by the EAFRD. Currently, the Lithuanian
Rural Network has over 900 organisations and authorities involved in rural development
processes92.
At the time the Partnership Agreement was being drafted, social dialogue was held in
thematic committees of the Lithuanian Rural Network: Committees on the Rural Policy,
Promotion of Rural Business, Rural Youth, Planning of Landscape and Rural Areas, Innovation
and Research in Rural Areas, Promotion of LEADER and Sense of Community. It is worth
mentioning that the existing structure of the Lithuanian Rural Network has ensured the
consultation process at local, regional and national levels.
The Ministry of Agriculture organised a series of events in February and March 2013 for
members of the Lithuanian Rural Network and other stakeholders of the rural development
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A list of members of the Lithuanian Rural Networks, approved by Order No 3D-180 of the Minister of
Agriculture of the Republic of Lithuania of 19 March 2009.
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process; the aim of those events was to introduce the guidelines on the Partnership Agreement,
the process of its drafting, the key priorities and provisions of the draft regulation on support to
rural development (by different topics and relevant measures).
To ensure a successful implementation of the CAP in the coming programming period,
on 6 May 2013 the Ministry of Agriculture launched a public discussion with the major partners
concerning the allocation of financing between pillar I (measures on market regulation, direct
support to farmers) and pillar II (rural development measures).
Furthermore, in December 2012 the Ministry of Agriculture launched a public discussion
with social partners concerning the CLLD model to be pursued by Lithuania in the coming
programming period. Drawing on the intensive consultations with the social partners, comments
and recommendations voiced, a possibility to implement bisectoral local development strategies
to be funded from EAFRD and EMFF has been envisaged for those LAGs which cover rural
areas and/or fishery regions. In addition to that, the proposal concerning the exception with
regard to the size of CLLD territory took account of the partners’ opinion concerning the good
practice of the 2007-2013 programming period related to the implementation of LDSs in rural
areas with population above 6,000. Social and economic partners were positive about the
proposals that the major focus and financial weight within the RDP were given to the objectives
and measures dealing with improvement of competitiveness of the agriculture.The Ministry of
Agriculture will ensure social partnership in various forms not only at the programming stage,
but also at other EU support administration stages, including the implementation, monitoring and
evaluation of the RDP 2014-2020. More detailed information on the application of the
partnership principle is available in Section 13 of the RDP 2014-2020 ‘Actions taken to involve
partners’.
To ensure successful preparations for the proper use of EMFF resources in the 20142020 programming period, the Steering Committee for the Lithuanian Fisheries Operational
Programme approved a list of partners (institutional, social, economic, societal) to be involved in
the drafting of the Fisheries Operational Programme. The selection of partners was based on the
current practice as well as transparency, impartiality and efficiency principles. Following the
Commission Staff Working Document on the Implementation of Partnership Principle approved
in April, 2012, partners relevant to the EMFF include regional and local authorities,
representatives from fisheries, aquaculture and other sub-sectors, for instance, processing,
sectoral organisations of social partners, environmental NGOs, science and research
organisations operating in the fisheries sector, national or regional networks of LAGs in the area
of fisheries.
In the course of negotiating the draft Fisheries Operational Programme wide
opportunities were provided for all stakeholder groups of the sector to provide their comments
and proposals on how to improve the programme. A large part of the presented comments were
related to certain SWOT elements. All comments were carefully noted and the majority of them
were taken into account. All the doubts were discussed and debated with the partners during the
meetings. Taking into consideration the partners’ comments some of the selection criteria for
fishery and acquaculture regions were adjusted, list of activities supplemented.
1.5.2. Promotion of equality between men and women, non-discrimination
In the framework of the Partnership Agreement equality between men and women will
be ensured and the gender equality and non-discrimination principles will be mainstreamed as
required in Article 7 of the Common Provisions Regulation.
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This horizontal principle shall be understood not only as safeguarding of equal
opportunities of men and women but also as a prohibition to restrict a person’s rights or give
him/her privileges on the grounds of his/her gender, nationality, racial or ethnic background,
language, religion, belief, opinions or attitudes, disability, social status, age or sexual orientation.
Equality of men and women refers to equality of rights, responsibilities and opportunities for
both genders. For the purpose of this principle, it is important to take into consideration
knowledge, interests, experience and roles of both men and women to enable both genders to
equally benefit from the 2014-2020 programming period.
Disabled, elderly people and people with different functional capacities should be
enabled to use physical infrastructure, transport, ICT and other measures and services under the
same conditions as granted to any other people. Serious barriers still exist in all these areas.
Accessibility for all is the primary condition for participation in social and economic life
however much has still to be done to achieve this objective.
In the framework of the Partnership Agreement, Operational Programme for the EU
Structural Funds’ Investments in 2014-2020, RDP 2014-2020 and Fisheries Operational
Programme, equality, non-discrimination and accessibility principles will be safeguarded as
follows:
o Representatives of NGOs engaged in gender equality, non-discrimination and
accessibility areas will be included into the structure of the Monitoring Committee;
o As part of project selection projects will be considered in terms of their compliance with
gender equality, non-discrimination and accessibility principles. In the 2014-2020
programming period, similarly to the 2007-2013 programming period, all applicants
seeking support will have to ensure that their projects will be in line with equal
opportunities and non-discrimination principles and that any discrimination related to
gender, race, ethnic background, religion or belief, disability, age or sexual orientation
will be prevented by granting equal access to support under all priorities to different
social groups. In the cases specifically mentioned in the documentation of the calls for
applications the applicants will have to specify the target activities and the results
whereby they are planning to actively contribute to the implementation of these
horizontal principles.
o Monitoring of compliance with the horizontal principles will be integrated into the
overall project monitoring and evaluation system. The monitoring of project
implementation will also include monitoring as to whether the granted support is being
used in line with the gender equality and non-discrimination principles.
o The Managing Authorities will provide information about the implementation of the
horizontal principles in the implementation and progress reports of the operational
programmes; the horizontal principles of the 2014-2020 ESI funds will be integrated into
the overall system for monitoring of implementation indicators of the relevant
programmes. Where appropriate, breakdown of beneficiaries by gender will be
monitored.
It should be noted that the mechanism for implementation of the horizontal principles
inherent to the EU Structural and Cohesion Funds developed in the 2007-2013 programming
period will continue to be used in the new programming period only functioning of some of its
elements will be improved. In the 2007-2013 programming period coordination of horizontal
principles was entrusted to the Horizontal Priorities Implementation Monitoring Group which
analyses the related information and provides recommendations concerning implementation of
the priorities. The working group is made of institutions involved in the implementation of the
Operational Programme, social, economic and regional partners as well as institutions in charge
of gender equality and non-discrimination. The working group will continue its functioning in
the 2014-2020 programming period.
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In 2013 the evaluation ‘The Impact of the EU Structural Support on the Implementation
of the Horizontal Priority ‘Gender Equality and Non-Discrimination’ was carried out; as part of
the evaluation recommendations for 2014-2020 programming period were issued. Moreover, by
2018 it is planned to conduct the evaluation with regard to the relevance of the Operational
Programme for EU Funds' Investments in 2014-2020 and impact on equal opportunities and nondiscrimination principle.
1.5.3. Sustainable development
Integration of sustainable development objectives at the programming level
To ensure optimal living conditions for the current and for the future generations,
Lithuanian sustainable development strategy emphasises the necessity to balance environmental,
economic and social development dimensions. The overall strategic objective of the sustainable
development – by 2020, to reach the EU-15 average level of 2003 in terms of economic, social
and natural resources efficiency indicators, while in terms of environmental pollution to remain
bellow the allowed EU standards, to implement the requirements of the international conventions
limiting environmental pollution and impact on global climate. Investments into climate change
mitigation and adaptation are based on the National Strategy for the Climate Change
Management Policy and interinstitutional implementation action plan; in the long-run the
investments are oriented towards decoupling of the rates of economic growth and emission of
GHG.
On the basis of these strategic documents and the provisions of Article 8 of the
Common Provisions Regulation requiring that the environmental protection requirements,
resource efficiency, climate change mitigation and adaptation, biodiversity, disaster resilience,
and risk prevention and management are promoted in the preparation and implementation of
Partnership Agreements and programmes, particular attention in the 2014-2020 programming
period will be paid to increasing labour productivity and resource efficiency in all sectors of the
economy, including agriculture and fisheries. The above objectives will be pursued by
introducing innovations into the production and management processes and by increasing energy
generation from RES. In addition to that, efforts will be made to fully implement the framework
environmental principles – cost recovery, “polluter pays” - and to maintain the situation were
economy of the country grows more rapidly than GHG emissions into the environment. When
assessing economic efficiency of the projects, where appropriate, account will be taken both of
direct costs and of the costs of the entire lifecycle. Particular attention will be paid to prevention
of environmental pollution, in particular in the waste sector. As to the public sector, green public
procurement will be introduced to a wider extent. All that will have positive impact on the
promotion of sustainable consumption and mitigation of climate change. Further development of
social and health care systems along with growing social responsibility of the companies and
reduction of pollution will enable to improve health and demographic indicators of the country,
will cut down social exclusion and emigration.
To implement the Water Directives (2000/60/EC, 2008/56/EC, 98/83/EC, Directive
91/271/EC), a number of strategic planning documents have been prepared (Nemunas, Lielupė,
Venta, Dauguva River Basin regional management plans, Baltic Sea Environmental Protection
Strategy, Drinking Water Supply and Wastewater Management Development Strategy, etc.)
These documents were prepared on the basis of sustainable development principles; in the
preparation stage of the Partnership Agreement, Operational Programme for Structural Funds’
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Investments in 2014-2020, RDP 2014-2020 and Fisheries Operational Programme the measures
envisaged in these documents were treated as a high priority.
As part of implementation of the Directive 2007/60/EC on the assessment and
management of flood risks in line with sustainable development principles, flood risk maps have
been prepared and preliminary risk mitigation measures are planned; in the drafting stage of the
Partnership Agreement, the Operational Programme for the EU Structural Funds’ Investments in
2014-2020, RDP 2014-2020 and the Fisheries Operational Programme these measures were
treated with high priority. That contributes to the objectives of climate change adaptation, risk
prevention and management, and disaster resilience.
To implement the environmental requirements and to achieve the objectives of climate
change mitigation and adaptation, specific projects will be selected by reference to strategic
planning documents, solutions and objectives of risk mitigation plans and provisions of laws
ensuring implementation of sustainable development principles and objectives. Resilience of
investments to the impact of climate change and natural calamities (increased risk of flood, heat
waves, extreme meteorological phenomena, etc.) will be assessed.
It is planned that as part of measure implementation and calls for applications
provisions will be applied obliging the applicants to justify that their investments contribute to or
does not have adverse impact on the implementation of the sustainable development principle.
Where appropriate, during project selection procedures projects will be assessed in terms of their
compliance with resource efficiency, protection of biodiversity and ecosystems, climate change
mitigation and adaptation, implementation of environmental requirements, risk prevention and
management, disaster resilience, granting the needs of consumers with different functional
capacities and ‘polluter pays’ principle.
Project selection criteria will be established in the way that enables to make sure
whether a project implements the ‘polluter pays’ principle, i. e. to assess whether the collection,
sorting, packing, marking, accounting, storing of waste from production and other economic
activities and transfer of the waste to waste treatment entities is the responsibility of the waste
holder who has to cover all waste managements costs in accordance with the ‘polluter pays’
principle. Compliance with the principle ‘polluter pays' will also be ensured by requiring
companies to include taxes for environmental pollution into the tariffs of their goods and
services.
As part of project selection, the following will be considered: whether environmental
impact assessment is required for the project, if so, whether it has been conducted; whether the
planned activity is related with the established or potential Natura 2000 territories or close
environment of such territories, if so, whether significance of Natura 2000 territories has been
assessed; whether the project envisages specific actions to ensure the implementation of the
sustainable development principle is promoted; whether the resources needed for the
implementation of the project are purchased in line with green or sustainable procurement
criteria; whether the resources needed for the implementation of the project are purchased from
socially responsible persons (companies) and whether the resources needed for the
implementation of the project are purchased from persons (companies) that have established
environmental management, etc. standards; whether the resources needed for the implementation
of the project will contribute to reduction of CO2; whether the project will contribute to climate
change adaptation or climate change mitigation, etc.
Monitoring of compliance with the sustainable development principles will be
integrated into the overall project monitoring system. Project implementation reports will also
include descriptions on the implementation of this horizontal principle. The annual
implementation and progress reports of the Operational Programme for the EU Structural Funds’
Investments in 2014-2020, RDP 2014-2020 and Fisheries Operational Programme will include
information about the implementation of the horizontal principles.
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The Operational Programme for the EU Funds’ Investments in 2014-2020 will
ensure principles of sustainable development as follows:
For the purpose of climate change mitigation and adaptation, protection of biodiversity
and ecosystems, disaster resilience, risk prevention and the achievement of management
objectives, improvements will be made to the data collection and presentation system and the
approach ‘do once, use many times’ will be applied, meaning that access will be given to general
information resources (electronic spatial environmental data collection and monitoring systems,
allowing sectors to share coordinated spatial data at EU and cross-border level). As a result,
higher quality information at the national, regional and local level will help identify key
problems as well as the best and most effective solutions.
Putting the available experience in practice (applying methods of analogues) and
monitoring how certain activities affect the environment, the social environment and economy,
support will be focused on areas with the greatest need for a new basic infrastructure and the best
potential for effective solution of environmental problems. Priority will be given to projects that
are capable of ensuring a high environmental level.
Sustainable development objectives will be achieved through the promotion of new
projects and technologies oriented at reducing environmental impacts and increasing social
inclusion, i.e. evaluating and meeting needs of the ageing society. Measures promoting the
demand for innovation (pre-commercial procurement, innovative public procurement) will
contribute to sustainable development objectives through commissioning R&D activities related
to the reduction of environmental pollution.
Environmental certification – another effective environmental measure – will be
applied not only to industrial production (goods), but also services. The aim is to encourage
business to use environmental certification which gives the right to use environmental mark on
the product label or corporate documents. The environmental mark is given to goods and
services which, compared to other products with the same purpose, have lower adverse
environmental impacts or their production and/or use involves fewer natural resources.
The renovation of public buildings will be implemented through the ESCO model.
Reduced needs for heating will lead to lower relative air pollution since less fuel will be used for
the production of heat. Also, households will be encouraged to replace low efficiency biofuel
combustion facilities with modern ones with high efficiency and low pollution.
Innovative technologies and methods will be introduced, as a result of which an
increasing share of waste will be turned into raw materials for new products. This, in turn, will
minimise adverse environmental impacts, while ensuring the implementation of environmental
requirements. Industrial symbiosis projects and cooperation in the field of waste management
and provision of raw materials will be promoted, focusing resources and meeting all
environmental requirements.
The introduction of eco-innovation (environment-friendly technologies) will meet
environmental requirements at raw material selection, use, production, packaging and
transportation stages. Financing will be earmarked for advanced resource efficient technologies
and production methods to minimise adverse environmental impacts and/or preserve natural
resources. Industrial enterprises will use technological elements which meet basic environmental
requirements, may be applied to many products and used for low carbon technologies,
promoting energy and recourse efficiency.
Financing will be ensured only for those urban public transport measures that use
alternative or renewable energy, namely electric transport, including electric buses, hybrid buses,
hybrid trolleybuses, buses propelled by compressed natural gas, liquefied petroleum gas and
biogas. Support to the development of cleaner fuel-driven public transport will limit urban air
pollution. Electric vehicles, plug-in hybrid vehicles and other vehicles that use alternative fuel
will be promoted for public purposes through (centralised) green procurement, the installation of
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public charging stations for electric vehicles, electric bicycles and electrorollers in urban areas as
well as electro bus stations and special electronic bus lanes for public transport. It all will have a
direct contribution to climate change mitigation and adaptation.
As part of the implementation of the resource efficiency objective, the aim in 20142020 is to cut drinking water losses in water supply systems by renovating water supply and
wastewater networks.
A priority will be given to projects carried out in line with sustainable and/or green
public procurement procedures, thus promoting a sustainable use of natural resources, reuse and
recycling of products, wider use of RES, development of environmental technology in industries,
the increasing supply of environment-friendly goods, services and works.
Higher score will be granted to those projects that will lead to lower annual CO2
emissions and projects aimed at replacing fossil fuel with biofuel in line with additional
bioenergy production and consumption sustainability principles and criteria covering aspects
such as preservation of biodiversity, energy efficiency, resource efficiency, social and economic
elements.
EAFRD support will contribute to the sustainable development in 2014-2020 as
follows:
The largest input into the sustainable development in 2014-2020 will be made by the
measures under the EU Rural Development priority dealing with recovery and improvement of
agriculture and forestry dependent ecosystems (in particular preservation of biodiversity,
recovery and conservation of the landscape, including Natura 2000 areas) by promoting, through
the agro-environmental measures, the establishment of high nature value and environment
friendly farming systems as well as by supporting farming in the areas with natural or other
specific handicaps. The implementation of the sustainable development principle in 2014-2020
will also be ensured by 5 EU rural development priority measures aimed at resource efficiency
and shift towards climate change resilient low carbon economy (by reducing emission of methan
generated in agriculture, absorption of carbon dioxide, etc.). In addition to that, measures will be
planned for efficient exploitation of forestry resources, whereby the protection of ecosystems,
recovery of damaged forests will be ensured, aforestation and other initiatives aimed at
conservation of forests and development of efficient forestry activities will be promoted.
An input into the implementation of the sustainable development in 2014-2020 will also
be made by other EU rural development priorities by supporting investments into agricultural
holdings and infrastructure, non-agricultural businesses, granting support for risk management in
agriculture, improving the public infrastructure in rural areas. During training and consulting
activities the promotion of sustainable development concept will be integrated into the practical
farming processes.
The Fisheries Operational Programme will contribute to sustainable development
objectives as follows.
Resource efficiency will be promoted through the promotion of the use of alternative
resources and RES, energy efficiency, introduction of smart technologies and production
methods that can be used by developing low carbon technologies, consultations on resource
efficiency to fisheries enterprises.
Support will be provided to measures which contribute to climate mitigation and
adaptation by implementing sustainable principles in the fisheries business: promoting the
creation of energy and resource efficient processes and technologies, their adaptation and
implementation in fisheries enterprises and fish unloading sites, giving advice to fisheries
enterprises on environmental sustainability, including climate change mitigation and adaptation.
Innovative technologies and methods will be launched to enable reuse of increasing
portions of waste for new production, which will help to directly mitigate adverse environmental
impact and in the meanwhile will ensure implementation of the environmental requirements.
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Projects of industrial symbiosis, cooperation in relation to waste management and provision of
raw materials by concentrating resources and taking into consideration all applicable
environmental requirements will be promoted.
Protection measures to be implemented include supporting investments into more
selective fishing methods and equipment whereby physical and biological impacts of fishing on
the environment are reduced, ensuring the preservation and improvement of landscape and
biodiversity, including biodiversity and functioning of water ecosystems. Specific measures for
the promotion and protection of biodiversity are also provided for in the sector of aquaculture.
Drawing on the existing experience (analogous methods) and monitoring of the impact
by certain activities on the environment, human society and economy, support will be channelled
into the areas that signal the largest needs for the development of new, background infrastructure
and offer a potential of the most efficient tackling of environmental problems granting priority to
the projects able to ensure high environmental protection level.
Support will be allocated to the measures promoting the optimisation of technical
capacities of environmental monitoring, evaluation and control by effective data collection and
fishing control, multi-annual protection plans, etc.
For the sake of sustainable development, development of new products and
technologies oriented towards mitigation of environmental impact and reinforcing of social
inclusion, i.e. consideration and meeting of the needs of ageing society, will be promoted.
1.5.4. Youth
The Council’s country-specific recommendations 2013 and 2014 for Lithuania
emphasise youth problems. They note the necessity for additional measures to increase the
participation of young people in the labour market and more efficient application of the ALMPs.
Understanding the scope of this problem, Lithuania has mainstreamed youth dimension as one of
the horizontal principles.
Young people are in exceptional situation due to their age and the period of life marked
by integration into the society, maturity, getting independent, attempting to position oneself in
the labour market, creating a family and gaining social and material status. This period of life is a
critical one. Young people have characteristic ways and opportunities to spend their leisure time
and are distinguished by pro-activeness, participation, ambitions, active use of ICT. Some young
people are not motivated and find it difficult to place themselves in the society. For the purpose
of planning public policy measures, the situation and the needs of the specific groups of young
people must be taken into consideration. Lithuania must address a few essential youth problems:
large unemployment; insufficient match between the available skills and the needs of the labour
market; relatively large mobility of young people both from smaller cities and from the country
itself; insufficient education (training) opportunities; poor entrepreneurial skills and creativity;
low interest in environmental and technology sciences, R&D; low participation in activities of
local organisations or municipal institutions; lack of coordinated and high quality information
and advice system for young people.
To address these problems, it has been foreseen to improve the system of education and
science and strengthen its links with the labour market, provide better opportunities to combine
studies, professional and family life. Youth guarantees will be implemented, ensuring that young
people who are not able to place themselves in the labour market have new opportunities of
education, internship or apprenticeship or are provided with an employment possibility.
Order No A1-692 of the Minister of Social Security and Labour of 16 December 2013
approved the Action Plan for the Youth Guarantee scheme. The plan provides for measures to
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ensure that all young people under 30 years old receive an offer for a job, apprenticeship,
traineeship or continued education within four months of them becoming unemployed or leaving
formal education. Lithuania is also planning activities funded by the Youth Employment
initiative under thematic objective 8 ‘Promoting employment and supporting labour mobility’.
In the new programming period, much attention will be given to the regional youth
policy. It is envisaged to support communities and NGOs (including youth communities and
organisations) in addressing local economic and social problems. Investments are planned
towards public spaces, living environment, sporting and other community infrastructure in cities,
towns and rural areas, which is important for the social, physical and cultural progress of the
youth. These activities will be financed by the ERDF. Measures will be implemented to ensure
the accessibility of services to young people and to promote their sense of citizenship, social
participation and involvement in decision-making processes, addressing issues relevant to the
youth. ERDF investments will contribute to encouraging young people to build a business.
Looking at demographical processes in terms of age structure, it is noticed that rural
areas have decreasing numbers of individuals both under 30 and under 40 years of age. EU
legislation establishes that a young farmer is an individual under 40 years of age.
Table 6. Rural population by age, emphasising age groups of the youth and young farmers
Rural population, total
Rural population under 30 years old
Rural population under 40 years old
2010
1,042,912
396,822
511,379
2011
1,015,462
361,209
482,031
2012
998,037
351,971
465,821
2013
982,637
343,470
451,244
Source: Lithuanian Department of Statistics
Considering the decreasing number of young people in rural areas, in the 2014-2020
programming period EAFRD-funded RDP 2014-2020 measures will place a special focus on the
youth, i.e. young people willing to engage in agricultural activities and/or non-agricultural
business in rural areas by granting support to start-ups and/or already operating natural and legal
entities that qualify as SMEs. As part of LEADER-type LDSs, a particular emphasis will be
placed on the inclusion of the youth.
As to the fisheries sector, the entrepreneurship and employment of young people will be
promoted by giving an additional score (if relevant depending on measure specifics) to business
investment projects that are undertaken by or that foresee to employ people between 18 and 29
years of age.
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1.6. The list of operational programmes with preliminary allocations by fund and by year
Table 7. List of operational programmes with preliminary allocations by ESI Fund and by year
Operational
programme
Operational
Programme for the
EU Funds’
Investments in
2014-2020
ERDF, ESF,
Cohesion Fund
and Youth
Employment
Initiative
RDP 2014-2000
Fisheries
Operational
Programme
ESI Funds
Total
2014
2015
2016
2017
2018
2019
2020
6,709,396,130
856,982,510
892,041,563
918,739,321
955,207,343
991,639,721
1,029,074,996
1,065,710,676
EAFRD
1,613,088,240
230,392,975
230,412,316
230,431,887
230,451,686
230,472,391
230,483,599
230,443,386
EMFF
63.432.222
8.694.653
8.805.725
9.240.371
9.303.555
8.385.916.592
1.096.070.138
1.131.259.604
1.231.352.483
1.268.862.150
Total
131
8.886.220
9.030.247
1.158.057.428
1.194.689.276
9.471.451
1.305.625.513
Partnership Agreement
Table 8. Allocations related to the performance reserve by ESI Fund and by category of regions
1
Fund
ERDF
ESF
EAFRD
Cohesion Fund
EMFF
2
Category of
region
Less developed
Less developed
3
Total EU support
(EUR)
4
5
Amounts excluded from the
performance reserve
ESF share
correspondin
g to YEI
3,501,411,767
1,127,284,104
Transfer of CAP
0
Total:
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EU support
share for the
performance
reserve (EUR)
3,501,411,767
1,095,501,471
31,782,633
1,613,088,240
2,048,917,626
63,432,222
8,385,916,592
6
1,613,088,240
2,048,917,626
63,432,222
8,322,351,326
7
Performance
reserve (EUR)
210,084,706
65,730,088
96,785,294
122,935,058
3,805,933
499,341,080
8
Performance
reserve (%) of
EU share for the
performance
reserve
6.0
6.0
6.0
6.0
6.0
6.0
Draft Partnership Agreement
2. ARRANGEMENTS TO ENSURE EFFECTIVE IMPLEMENTATION
2.1. Arrangements to ensure coordination between the ESI Funds and other Union
and national funding instruments and with the European Investment Bank (EIB)
2.1.1. Coordination between the ESI funds, European Territorial Cooperation (ETC)
Programmes and the EUSBSR
Coordination between the ESI Funds
Coordination of the ESI Funds will be implemented through the complementarity and
concentration of the ESI Funds in the implementation of the most important Lithuanian and
European priorities as well as wider monitoring of the implementation of operational
programmes ensuring more effective coordination of evaluations. In the field of publicity and
information, the aim is to communicate information to applicants on opportunities of the ESI
Funds in a more friendly and coordinated manner.
Looking at compatibility of five ESI Funds, it has been established that the ERDF, the
ESF and the Cohesion Fund will finance all 11 objectives, the EAFRD will support all thematic
objectives, except for thematic objectives 7 and 11, and the EMFF will finance the
implementation of thematic objectives 3, 4, 6 and 8. A more detailed table on compatibility and
demarcations between the ESI funds reflecting how ESI funds contribute to the thematic
objectives and how they are balanced with each other to ensure their complementarity is
provided in Annex 3.
A system for the prevention and control of double financing in the 2014-2020
programming period is being developed drawing on the experience and the tools developed in
²007–2013 (list of complementarity and demarcations between the measures, data and
information exchange between institutions administrating different funds) . Experience gained in
the prevention of double financing in 2007-2013 will be put in use. The prevention and control
of double financing will be ensured in a systematic way, i.e. relevant supervision and control
measures and procedures will be carried out at each stage of the implementation of the
operational programmes and projects.
In the new programming period, the coordination of compatibility will be improved by
expanding functions of the Monitoring Committees. The Monitoring Committees will discuss the
progress in the implementation of the operational programmes, proposed changes to the
operational programmes and the project selection criteria as well as general implementation
issues relevant to the funds. The Monitoring Committees are expected to include (as members or
observers) institutions in charge of other financial instruments as well as socio-economic
partners competent in relevant areas and possessing good knowledge on financing instruments.
The participation of these representatives and partners is particularly relevant for meetings where
issues of individual funds or objectives will be discussed. The Monitoring Committee of the
EAFRD-funded programme consists of representatives from the Managing Authority of the EU
Structural and Cohesion Funds, intermediate bodies and social partners.
Compatibility of investments will also be pursued through the Management Committee
of the Operational Programme for the EU Structural Funds’ Investments in 2014-2020 whose
main function is to ensure compatibility of the operational programme implementation aspects,
discuss evaluation results, exchange good practices with the institutions administrating the
investments.
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To ensure more efficient measurement of the impacts of the ESI Funds, better
coordination of evaluation activities will be secured. An interinstitutional evaluation
coordination group will be set up in the 2014-2020 programming period, consisting of not only
representatives of the Managing Authorities of the ERDF, the ESF and the Cohesion Fund, but
also representatives from Managing Authorities of the EAFRD and the EMFF. The Evaluation
Coordination Group will coordinate EU Structural and Cohesion Funds evaluation plans for
2014-2020 and annual evaluation plans as well as evaluation objectives and tasks provided for in
these plans. Some evaluations will cover all five ESI funds. The coordination of how the findings
and recommendations generated by evaluations are being implemented as well as
communication of the evaluation findings will be ensured by the Operational Programme for the
EU Funds’ Investments in 2014-2020, the RDP 2014-2020 and the Fisheries Operational
Programme.
What concerns publicity and information, the EU Structural and Cohesion Funds
website will be updated, providing explicit information and necessary references to other
European Commission’s programmes and financing opportunities by the ESI Funds. Applicants
will also receive initial information on opportunities offered by the ESI Funds as well as other
programmes and be referred to a relevant authority or on-line information.
Coordination between the ESI Funds and ETC programmes
To ensure synergy between ETC programmes and the ESI Funds, the most important
innovation of the 2014-2020 programming period is limiting the selection of objectives under
ETC programmes. Following the planned approach, each transnational and international
cooperation programme will have four key objectives and a few other objectives selected. These
objectives will cover a maximum of 20% of the total financing of the programme and of
thematic objectives of the ESI Funds. Interregional cooperation programmes, however, will be
allowed to choose any number or all of the thematic objectives. Such concentration will limit the
thematic scope of ETC programmes and help pursue synergy in specific areas.
Assuming that the larger share of financing to the implementation of Lithuania’s
national objectives will come from the ESI Funds, Lithuania will make efforts that ETC
programmes, in which it will participate, direct their funds to the implementation of specific
activities covered by investment priorities of the ESI thematic objectives. Increasing of
employment could serve as an example. It is one of the ESI thematic objectives which will
receive funding from almost all ESI Funds (especially the ESF) as well as from ETC
programmes, meaning that these financial instruments are aligned in terms of contents.
For the purpose of choosing priorities and measures or selecting and monitoring
projects under ETC programmes, measures will be taken to identify potential sources of funding
for operations and assess their suitability. Moreover, in order to coordinate actions planned under
ETC programmes and actions under the ESI Funds and other programmes, an advisory
committee for ETC programmes will be established, consisting of bodies in charge of the
operational programmes and other related financial instruments as well as representatives
delegated by socio-economic partners. Basic functions of this committee will include submitting
proposals to Lithuania’s representatives delegated to ETC programme monitoring (steering)
committees concerning the eligibility of Lithuanian partners to implement projects, the
justification of project activities and their results specified in the relevant project applications,
and communicating information about ETC programmes in represented institutions.
In the 2014-2020 programming period Lithuania will take part in three ETC objective
cross-border cooperation programmes – Lithuania-Poland, Lithuania-Latvia and South Baltic.
The implementation of these programmes primarily seeks to develop cooperation in the border
regions to tackle common problems and to increase attractiveness of the border regions for
investing and living. The thematic objectives which will be pursued through the programmes
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have been identified taking account of specific and unique nature of the border territory with a
view to contributing to and complementing the investment areas foreseen for the ESI funds.
Hence, for the purposes of Lithuania-Poland and Lithuania-Latvia cross-border cooperation
programmes four thematic objectives (6, 8, 9 and 11) were chosen together with partners and
neighbouring countries on the basis of which investments in the border regions will be
supported. Having in mind the specific aspects of the South Baltic region, partners from
Denmark, Poland, Lithuania, Sweden and Germany chose thematic objectives 3, 6, 7, 8 and 11.
The South Baltic programme will focus on the actions in accordance with the thematic objectives
dealing with the development of blue and green economy.
Coordination between the ESI Funds and the EUSBSR
In Lithuania, the implementation of the EUSBSR is coordinated by the Ministry of Foreign
Affairs (national coordinator of the EUSBSR). The implementation process is supervised by the
National Commission for Supervision of the EUSBSR Implementation (the Commission),
consisting of representatives from responsible public authorities and agencies (mostly sectoral
ministries), including those participating in the administration of the ESI Funds and socioeconomic partners. The Commission regularly discusses EUSBSR-related issues, including
possibilities for cooperation with other countries within the framework of the Strategy, financing
of the EUSBSR, its links with documents on the use of the ESI Funds in 2014-2020 and other
financing instruments, etc. With the aim to ensure links between priorities of the ESI Funds and
the EUSBSR objectives and their compatibility, the EUSBSR coordinator, priority area
coordinators and leaders of flagship projects took part in the Commission for the EU Structural
and Cohesion Funds 2014-2020 (the Commission), which plays an important role in the drafting
of the Partnership Agreement and the Operational Programme for the EU Funds’ Investments in
2014-2020, discussions on the role of the EUSBSR in the 2014-2020 programming period. Also,
to ensure thematic coordination throughout the drafting of strategic documents for the ESI Funds
and the selection of specific objectives as well as planning of the activities to be financed,
objectives of the EUSBSR and priority areas provided for in its action plan will be taken into
consideration.
Efficient coordination of the EUSBSR and the ESI Funds will also take place during the
implementation of the ESI Funds: the main actors of the EUSBSR (national coordinator of the
EUSBSR, priority area coordinators, leaders of flagship projects) will be invited to Monitoring
Committees for the ESI Funds, where they could discuss the input of the ESI Funds into the
implementation of the EUSBSR and other EUSBSR-related issues on a regular basis. It should
be noted that the involvement of EUSBSR actors in the planning and implementation of the ESI
Funds in 2014-2020 creates preconditions for an integrated assessment and improvement of
possibilities for the implementation of the EUSBSR.
On 5 December 2013, Vilnius held a meeting of national coordinators of the EUSBSR,
where it was decided to organise regular meetings between Managing Authorities and
coordinators of the drafting of the Partnership Agreement. These meetings should ensure closer
cooperation and more consistent discussions on the links between the cohesion policy and the
EUSBSR, and particular initiatives. It was also decided to apply priority criteria to projects
implemented in Lithuania, which are funded by the ESF, ERDF and the Cohesion Fund and
contribute to the EUSBSR. This will ensure systematic monitoring. Links between and impacts
of the cohesion policy and the EUSBSR will be measured in evaluations which will be
coordinated with evaluations in other countries.
It should be noted that in the context of EUSBSR implementation, ESI funds can be
used to pursue the goals of the blue growth strategy, to identify the development possibilities of
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the relevant territories, in particular situated near the sea. Following the Communication from the
Commission of 13 September 2012 No 494 Blue Growth opportunities for marine and maritime
sustainable growth, the activities financed by ESI funds, where appropriate, will be expanded to
include elements of marine and maritime sectors.
2.1.2. Coordination between the ESI Funds and other Union and national financing
instruments and with the EIB
The 2014-2020 period opens exceptionally broad opportunities to benefit from ESI
funds and other EU and international programmes to pursue changes in the areas of priority both
to Lithuania and to Europe to a more efficient and wider extent. The largest opportunities in the
2014-2020 programming period open in the priority areas related to education and training,
development of innovations and research, high quality employment and labour mobility, social
inclusion and poverty reduction, sustainable development and environment, energy efficiency,
business competitiveness and information society.
For the sake of more efficient exploitation of the opportunities offered by both ESI
funds and other EU and international programmes, the following actions will be taken:
- Ensuring compatibility of financing of the Lithuanian and EU priority development
needs from different funding sources, EU and other international programmes and
instruments by exchanging more detailed information between the administrating
institutions about measures, areas to be funded, calls for applications, etc.
- Raising awareness about other EU and international programmes and instruments,
improving dissemination of information;
The compatibility between the ESI funds, international programmes and instruments is
first of all based on consistent development of the specific areas and implementation of the
changes sought by assessing the opportunities offered and the eligibility requirements set by the
EU and international programmes and instruments.
Particular attention will be paid to the compatibility of those EU and international
programmes and instruments that can contribute to the changes in the areas most important to
Lithuania and in specific stages, for instance, by providing opportunity to multiply project results
and to ensure their continuity.
A particular focus is placed on the compatibility of the below listed programmes and ESI
funds:
In the area of research and innovations there is potential synergy between ESI funds and
Horizon 2020 in relation to international researches, investing in the core technologies,
increasing funding possibilities and supporting SMEs. In 2014-2020, it is planed to use
coordinated investments of ESI funds and Horizon 2020 to promote cooperation (including
international) between research and business, integration of researches into ESFRI network,
increasing business investments into RDI. Participation in the activities of Knowledge and
Innovation Communities of the European Innovations and Technology Institute will potentially
be sought as well.
As regards improved competitiveness of SMEs, compatibility will be ensured between
ESI funds and the Programme for the Competitiveness of SMEs 2014-2020 (COSME)93 in
relation to activities whereby better opportunities will be safeguarded for the SMEs to raise
93
Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013 establishing
a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014 2020) and repealing Decision No 1639/2006/EC (OL 347/33, 20 12 2013).
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funding in the form of equity and debt and access funding for their starting-up and growth stages,
market access will be improved, entrepreneurship and business culture will be enhanced.
In the environmental area potential funding can be provided from other EU funded
programmes. For instance, LIFE programme can finance projects contributing to EU
environmental policy by introducing innovative methods and technologies to provide
environmental solutions with emphasis on protection of biodiversity and combating climate
change, applying innovative funding methods (including financial instruments). While those
willing to implement commercial environmental demonstration projects aimed at collection and
storage of CO2 or to use RES can also seek support from EU programme NER 3000. NER 3000
will finance projects using innovative and readily available technologies of the core areas
ensuring not expensive but substantial reduction of GHG emissions into the environment.
For the purpose of activities dealing with boosting of employment, reducing of poverty
and social exclusion, there is a potential for complementarity between ESI funds and the
Programme for Social Change and Innovation (SCIP) in relation to supporting of the network
of European employment services (EURES), social enterprises and social business, public,
private and third sector employment partnerships, youth employment, issuing of micro credits to
those in highest need, in particular, vulnerable persons, promoting equality of men and women
and anti-discrimination. Complementarity will be safeguarded by funding complementary
measures and offering opportunities to develop successful project ideas.
In reducing disparities in health and accessibility of health care and in promoting health
of the productive society, in particular elderly people, there is a potential for synergy with the
third EU health programme Health for Growth related to pursuing of joint actions and
projects enabling to disseminate and reinforce the available knowledge, sharing of good practice,
experience of pilot projects and research evidence based decisions. As regards healthy ageing
objectives, the promotion of better quality of life, financial sustainability of health and social
services systems and new business opportunities can benefit from the European Innovation
Partnership for Active and Healthy Ageing and the related Joint Active Living Programme.
In education, a potential for synergy exists with the programme Erasmus+ which aims
at: enhancing practice opportunities for the students; improvement and deepening of knowledge
and skills for the adults needed for successful participation in the labour market; improvement of
professional and/or pedagogical knowledge and skills on an institutional and staff level;
strengthening of cooperation between the higher education schools and the stakeholders;
preparation of new study programmes/subjects/modules matching the needs of the market;
improvement of the young people’s achievements; strengthening the quality of early childhood
education and care; enhancement of teachers’ qualification; strengthening of their professional
competencies and increasing mobility. Combination of these instruments will facilitate
introduction of life long learning and innovative adult training models, improvement of general
and professional skills of the students and the teachers in all sectors of education.
To reinforce and better mobilize human resource potential in the R&D area and to
improve the working conditions of the scientists and other researchers, coordination between ESI
funds and Marie Skłodowska-Curie programme will be ensured in the context of financing
initial training networks, scholarships for those leaving to other European countries in sought
of career development, subsidising professional integration, developing research and business
partnership, engaging in international staff exchanges. The reinforced coordination between ESI
funds and Marie Skłodowska-Curie programme will result in more intensive R&D human
resource connections with the private sector, research and higher education institutions as well as
other research institutions abroad.
Changes in the public administration area will be implemented by using the
opportunities offered by the ESI funds, the Internal Security Fund and the Asylum, Migration
and Integration Fund (hereinafter together referred to as Home Affairs Funds). Investments
from the ESF and the Home Affairs Funds will be coordinated and the potential risk of
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overlapping of these funds will be managed through cooperation of the institutions in charge of
planning and implementing of measures supported by the funds in the context of preparation of
programming documents on investments, project selection criteria, pipelines of projects to be
supported, and by delegating representatives from the institutions in charge of implementation of
the priority under thematic objective 11 to the committees that will be established for the
coordination and monitoring of the implementation of programmes for the Home Affairs Funds.
To contribute to the EU 20/20/20 objectives in the climate change area by reducing
energy consumption, GHG emissions and improving the air quality, there will be an additional
possibility to use the benefits offered by the European Innovation Partnership for Smart Cities
and Communities in relation to deployment of innovative solutions in the areas of information
technologies, energy efficiency and public transport management.
Considering the specificity of EU programmes or financial instruments and the principle
of complementarity, the aim is to ensure the continuity of project results in order to receive
funding from EU financial instruments and other programmes (e.g. funding of research projects
by the Horizon 2020 programme). Another aim is to ensure that a project or a group of projects
in a specific field could be funded by several sources of funding, primarily through integrated
coordination and avoidance of double financing with such programmes as Horizon 2020, LIFE
and Erasmus +. Beneficiaries of these programmes will be invited to meetings of the Monitoring
Committee. Moreover, cooperation and information exchange procedures will be set for the
Managing Authority and implementing bodies of the said programmes.
The Monitoring Committee will pay additional attention to the presentation of the above
mentioned programmes, instruments and opportunities; information exchange will also be
secured. The website of the EU Structural and Cohesion Funds will post information about the
opportunities offered by the EU and international programmes.
It should be noted that the complementarity of the ESI Funds with other relevant
national strategic programmes funded from the national budget will be monitored. In 2012, the
Lithuanian Government adopted the NDP designed to implement the State development strategy
‘Lithuania 2030’. This programme covers the most important provisions of the national policy as
well as of the EU policy set out in the Europe 2020 strategy. It also provides for all sources of
financing, i.e. the ESI Funds and other sources of financing, including the national budget.
Coordinators of the NDP must ensure the monitoring of project implementation, which involves
all institutions in charge of specific objectives, analysis of the achievement of evaluation criteria
and the input of the actual data into the Monitoring Information System. It should be noted that
the Operational Programme for the EU Funds’ Investments in 2014-2020 and the RDP 20142020 are built on the NDP.
Coordination with the Connecting Europe Facility (CEF)
As regards the transport, Lithuania is planning to implement a few important groups of
CEF supported projects in the network of the core European connections: construction of a
section of 1435 mm gauge high-speed railway ‘Rail Baltica’ from Kaunas to Lithuanian national
border with Latvia meeting the technical interoperability specifications; modernisation of the
East-West transport corridor (IXB corridor, electrification of Vilnius and Radviliškis railway
node); modernisation of the highway ‘Via Baltica’ (sections from the national border to the
nearest towns – transport nodes); and development of intelligent transport systems. CEF projects
will significantly improve the interoperability between the multimodal transport system and the
trans-European transport networks (TEN-T).
A coordinated and integrated expansion of the country’s transport system into the TENT networks with the help of ESI and CEF funding will enable to achieve the maximum expected
effect ensuring smooth functioning of the internal market that will help to increase the overall
competitiveness of Europe (transport system). Investments from the ESI funds and the CEF are
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planned by coordinating the potential projects on the basis of the National Transport
Development Programme. In the context of project implementation, investments from different
funds will also be coordinated. Where the CEF funding envisaged to projects is not sufficient the
projects can be funded from the Cohesion Fund or ERDF.
In energy sector, Lithuania is preliminary planning to use CEF funding for the
implementation of projects in common interest with the EU (Lithuanian-Polish electricity
connection ‘LitPol Link’, increasing the capacity of the main gas pipe pipeline KlaipėdaKiemėnai, Lithuanian-Polish gas connection GIPL, synchronisation of the Baltic countries with
the continental European networks; expansion of Lithuanian and Latvian gas connection).
Whereas the financing from the Structural Funds is planned to be used for the implementation of
internal electricity and gas networks by implementing individual projects needed to ensure the
functioning of the newly developed EU common interest electricity and gas energy infrastructure
and full-fledged integration of Lithuania into the EU energy systems and the internal market.
It should be noted that the project aimed at increasing the capacity of the main gas
pipeline Klaipėda-Kiemėnai has been included into the list of EU projects of common interest.
Should a project receive no or receive insufficient CEF funding, in consideration of the
importance of this project for the integration of the LNG terminal in Klaipėda into the market
and for the integration of the Lithuanian gas systems into the EU internal market, the lacking
amount will be granted for this project from the Structural Funds envelope. Structural Funds can
also fund other EU projects of common interest that receive no CEF funding or where the
granted CEF funding is not sufficient. To enhance accessibility and quality of public and
administrative services, the planned actions to be supported from the EU Structural and
Cohesion Funds in relation to introduction of electronic services will be coordinated with the
planned CEF initiatives aimed at development of intergovernmental e-services, i.e. the national
solutions being worked on will be agreed with the requirements of the inter-governmental
solutions. For instance, participation in Europeana, e-identification and e-signature initiatives is
envisaged. These initiatives will be complemented with project results achieved as part of such
activities of the Operational Programme for the EU Structural Funds’ Investments in 2014-2020
as dissemination of Lithuania’s digital cultural contents (development of innovative e-services
and e-products based on digitised heritage and contemporary cultural contents); development of
new solutions and improvement of the existing solutions for personal identification and
preservation of privacy in electronic media.
Coordination of the agricultural area
Pillar I of the CAP funded by the European Agricultural Guarantee Fund (EAGF)
covers direct payments and market measures providing a basic annual income support to EU
farmers and support in case of specific market disturbances. It is complemented by CAP pillar II
which is funded from the EAFRD and which emphasises rural development support through the
promotion of competitiveness and innovation and with regard to environmental needs. The
actions underlying the both CAP pillars are closely interrelated and both areas complement each
other.
Direct payments and similar support schemes, such as special payment schemes for
small farmers and special support for young farmers up to 40 years old, are both directly and
indirectly related with the relevant RDP measures, therefore will contribute to the common
goals. The main aim of direct payments is to ensure sufficient income to farmers, therefore
looking from the RDP perspective it is a measure increasing the income level in the agricultural
sector and ensuring the growth of competitiveness.
Direct payments are made to farmers that meet requirements of cross-compliance,
covering requirements of the Good Agricultural and Environmental Conditions (GAEC) and
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management. These requirements complement actions under CAP pillar II aimed at adapting
green farming practices to territories of large environmental value (such as Natura 2000),
traditional agricultural areas and areas with natural or other specific barriers. In the context of the
new 2014-2020 programming period, GAEC requirements are expected to be further expanded,
committing the Member States to define and apply new requirements to the protection of soil
and water on the basis of GAEC standards approved at the EU level.
To increase the overall environmental efficiency of the CAP, direct payments are
interlinked with the greening requirement. According to this approach, any farmer applying for a
direct payment must pursue certain greening activities for the benefit of the climate and the
environment. These activities will be based on individual measures of CAP pillar II.
The provision of training and advisory services, information and better understanding
will enable individuals that receive payments under CAP pillar I to better meet the requirements
of cross-compliance. Entrepreneurial skills and ability to engage in alternative businesses being
developed under RDP measures will also serve as a significant contribution to the
competitiveness of the agricultural sector.
Support for the improvement of technologies, farming practice and processing will
create conditions for the development of products of larger value-added, allow entities to
generate larger income and hence increase investments under the RDP.
Market regulation measures will compliment direct payments in the 2014-2020
programming period (for instance, government’s intervention, support to private storage,
measures promoting full consumption of products). Other measures can also be applied,
including export refunds, crisis prevention and management measures, measures related to the
improvement of the food supply chain. Pursuant to the principles of control mechanisms, these
measures will be applied to prevent the overlapping of support to projects covered by single
market regulation measures and the RDP.
Coordination with the EIB
Drawing on the successful cooperation experience of Lithuania and EIB in the 20072013 programming period in relation to administration of the long-term loan issued by the EIB to
Lithuania for ensuring of the national public funding contribution and own contribution of
project promoters as well as referring to the assessments of 2014-2016 borrowing projections
and taking into consideration the attractiveness of loans from international financial institutions
Lithuania has decided to continue cooperation with the EIB and consequently applied for a loan
to ensure national co-financing of investment projects to be supported in 2014-2020 from EU
funds. The cooperation with the EIB in the 2014-2020 programming period is an attractive
option because the agreed EIB loan agreement and EIB loan management and administration
system for 2007-2013 is already in place and the 2014-2020 loan administration system would
be integrated into the existing framework. EIB might also be approached seeking loans for the
implementation of individual projects in relation to transport infrastructure, renovation of multiapartment buildings or other areas. In addition to that, in the context of financial instruments
supported by international financial institutions account will be taken of the performance of the
functioning financial instruments created in the 2007-2014 programming period, information
with the managers of the financial instruments, for instance, European Investment Fund, the
manager of the Baltic Innovation Fund, will be exchanged.
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2.2. Ensuring additionality
Table 9. Ensuring additionality in 2014-2020
Expenditure of the
General
2014*
2015
2016**
2017
2018
2019
2020
Government as a
share of GDP
3,5
3,4
3,1
3,1
3,1
3,1
3,1
P51
*The gross fixed capital formation of 2014-2015 is foreseen in accordance with European Commission’s economic
forecasts for Lithuania, autumn 2013. The economic forecasts are published on
<http://ec.europa.eu/economy_finance/publications/european_economy/2013/pdf/ee7_en.pdf
**In 2016-2020, it is expected that the gross fixed capital formation will be maintained at the average level of 3.1%.
The average gross fixed capital ratio in 2014-2020 is planned to be 3.2% of the GDP.
2.3. A summary on the fulfilment of applicable ex ante conditionalities
Information is provided in Annex No 2.
2.4. Methodology and mechanism to ensure consistency in the functioning of the
performance framework
Financial indicators
All financial indicators to be pursued through the ESI Funds are proposed by
intermediary bodies and determined by the Managing Authorities responsible for drafting the
Operational Programme for the EU Funds’ Investments in 2014-2020, the RDP 2014-2020 and
the Fisheries Operational Programme. Managing Authorities and intermediary bodies determine
financial indicators based on such principles as historic data on the implementation of similar
priorities/projects in previous programming periods; preparation of the sector to absorb EU
support (the status of legislation, specifics of the planned measures); experience of the relevant
authority in administering EU support; findings and observations of the ex ante evaluation.
Monitoring indicators and main stages of implementation
To ensure that monitoring (output and result) indicators are properly set and meet
quality standards, the Managing Authority of the EU Structural and Cohesion Funds has
prepared recommendations for intermediate bodies as to the identification of indicators for the
Operational Programme for the EU Funds’ Investments in 2014-2020, which are based on
requirements for the identification of indicators established in the regulations and
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methodological documents of the European Commission. Also, training will be organised for
intermediate bodies in charge of the identification of monitoring indicators to be used for
investments in the 2014-2020 programming period.
In their proposals for specific indicators intermediate bodies also provided detailed
descriptions for the indicators proposed, as recommended by the Managing Authority of the EU
Structural and Cohesion Funds. Each description sets out arguments why this particular indicator
has been chosen, justify the relevance of the indicator for monitoring the implementation of the
investment planned, and explains how target values, which allow for an integrated monitoring of
the indicator’s progress during the implementation of the operational programme, have been
calculated.
Following recommendations of the Managing Authority of the EU Structural and
Cohesion Funds, target values for output indicators are usually calculated on the basis of average
costs or other unit costs, as set in previous programming periods or national programmes, which
are planned with regard to the scope of the investments and activities planned. Target values for
result indicators of ESF have been calculated on the basis of the indicators achieved in previous
programming periods in similar national programmes; as regards ERDF and Cohesion Fund, the
target values of result indicators have been calculated on the basis of the objectives set in the
strategic documents and/or expected scope of investments as well as on the basis of the assessed
conclusions from macroeconomic simulation, expert judgements or statistic analysis.
The EAFRD-funded RDP 2014-2020 uses the indicators set within the common
monitoring and evaluation system of rural development programmes. Monitoring indicators for
the Fisheries Operational Programme have been set by the Managing Authority of the Fisheries
Operational Programme, taking the European Commission’s recommendations into
consideration.
As to monitoring indicators to be used for performance review, output indicators and/or
result indicators defined in the operational programmes for monitoring the implementation of
investment priorities and/or specific objectives which would best reflect the implementation
progress of the investments covered by the operational programmes and the achievement of
which absorb the majority of the funds have been chosen. In case of the RDP 2014-2020,
monitoring indicators that best reflect the progress in the implementation of the EU rural
development priorities will also be used for performance review.
The Performance Framework is mostly based on output indicators. Result indicators
have been chosen only where they measure impacts of the investments under the operational
programme at the beneficiaries’ level (or impacts of the investments on a certain fisheries sector,
in case of the EMFF) rather than reflect socio-economic changes at the national level. Milestones
are used instead of financial/monitoring indicators, where the relevant priorities and/or specific
objectives may fail to achieve tangible and measurable results by the end of 2018. They have
been set on the basis of historic data on the implementation of similar priorities/projects in
previous programming periods, preparedness of the sector to absorb EU investments and the
experience of the authority in administration of EU investments.
As to the ESF, the ERDF and the Cohesion Fund, the Performance Framework also
provides the main reasons justifying the choice of a monitoring indicator/milestone and its
relevance for performance review. The monitoring indicators and milestones and their target
values proposed by intermediate bodies were assessed by an ex ante evaluation. External experts
positively assessed the relevance of the indicators proposed for monitoring investments under the
operational programme and for performance review and confirmed the validity of the
calculations related to the target values.
Monitoring indicators of the Fisheries Operational Programme and the RDP 2014-2020
have been chosen for performance reserve review with regard to the European Commission’s
recommendations.
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Long-term planning and management
Monitoring of the use of resources of the ESF, the ERDF and the Cohesion Fund and
risk management were based on the plan for the absorption of EU funds. This plan sets target
and critical amounts of the ESI Funds to be declared to the European Commission; the above
framework was aimed at a consistent absorption of the EU funds throughout the whole
programming period and avoiding any losses of the EU funds earmarked for the implementation
of the operational programmes in accordance with the N+2/3 rule. For the purpose of EAFRD, in
the context of the 2007-2013 programming period biannual plans for the absorption of RDP
2007-2013 funding with breakdown by quarters were prepared. Drawing on the successful
experience related to these plans, similar plans are to be prepared for the 2014-2020
programming period by extending their scope to the monitoring indicators included in the
Performance Framework. These plans will serve as a tool to manage the risk of losing any funds
in accordance with N+3 rule and also to ensure regular monitoring of the indicators included in
the Performance Framework.
The plans on the achievement of monitoring indicators used for the absorption of EU
Structural and Cohesion Funds and performance review ultimately approved by the Government
of the Republic of Lithuania will be drafted by the Managing Authority at the beginning of the
programming period on the basis of proposals from the intermediate bodies. The plan for the
absorption of EU Structural and Cohesion Funds specifies critical annual amounts to be absorbed
under each priority of the Operational Programme for the EU Funds’ Investments in 2014-2020
by responsible intermediate bodies. Similarly, the plan for the achievement of monitoring
indicators for performance review sets out target annual values for monitoring indicators
included in the performance review plan.
Instruments for control
ESF, ERDF and Cohesion Fund. Regular systemic monitoring of the implementation of
plans is carried out on a quarterly basis through implementation reports. These reports provide
facts about contracts made, status of achievement of financial and monitoring indicators,
derogations from the values set in the plans, causes for the derogations and the resulting risks,
detailed information and the schedule of the actions that have been/will be taken. These reports
shall be prepared by the Managing Authority of the EU Structural and Cohesion Funds after
analysing and adding information provided by intermediary bodies. The Managing Authority of
the EU Structural Funds, after identifying any problems or delays, prepares proposals and
measures to address such problems and sends all related information to the Government together
with a quarterly implementation report. Once the Government approves the report and the
measures to address the problems identified, the Managing Authority of the EU Structural and
Cohesion Funds is responsible for the supervision of the implementation.
The data related to the ongoing monitoring of the implementation of priorities and
measures are stored and analysed within the computerised EU Structural Support Information
Management and Monitoring System (SFMIS). It is expected that in the 2014-2020
programming period the SFMIS will have tools installed that were used in the 2007-2013
programming period and enable automated analysis of the implementation of plans covering
information about expected applications, contracts, payments, recognition of costs to be declared
to the European Commission, target values of monitoring indicators, performance and
compliance of different procedures (for instance, evaluation of applications, verification of
payment claims, the start of spending, keeping with deadlines for payment claims) with the
deadlines established by legal acts.
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Also, the tools used in the 2007-2013 programming period for collection and synthesis
of information on the implementation of general policy objectives (contribution to climate
change mitigation) will be installed into the SFMIS and further improved. Financial and
monitoring indicators related to the implementation of the said objectives will be analysed on a
regular basis.
A summarised review of the performance of plans and the implementation of general
policy objectives will be performed through annual reports of the Operational Programme for the
EU Funds’ Investments in 2014-2020.
EAFRD. In case of the RDP 2014-2020 funded by the EAFRD, to ensure a consistent
absorption of EAFRD resources throughout the whole programming period and to prevent any
risks of losing the EAFRD resources earmarked for the programme in accordance with the N+3
rule, the Managing Authority (the Ministry of Agriculture) will draft biannual plans, with a
breakdown by quarters, for the use of funds. The implementation of these plans will be
monitored through quarterly implementation reports.
As to the 2014-2020 programming period, it is intended to further upgrade modules of
the Information System for the Administration of Support to Agriculture (the ŽŪPAIS) (dealing
with the assessment of applications, payment claims and disbursements), which accumulate
information needed for the administration of support and supervision of projects. Similarly, the
Statistical Data Storage (the SDS) developed in the 2007-2013 programming period and
containing tools which help analyse and forecast data about expected applications, existing
contracts, paid out support as well as monitor indicators of the RDP 2014-2020 will be further
developed in the 2014-2020 programming period, adapting functionalities of the systems to
requirements of the RDP 2014-2020.
EMFF. To ensure the optimal absorption of EMFF resources and to avoid any risks of
losing financing in accordance with the N+3 rule, the Ministry of Agriculture, being responsible
for administration of the Fisheries Operational Programme, draft biannual plans, with a
breakdown by quarters, for the use of funds. The implementation of these plans is monitored by
quarterly implementation reports.
The supervision of the EMFF-funded Fisheries Operational Programme in the 20142020 programming period will be based on the Information System for the Administration of
Support to the Lithuanian Fisheries Sector; this information system will be built on the database
generated within the Information System for the Administration of Rural Development Plan
Measures (the KPPAIS). The fisheries administration information system will be integrated into
the Information System for the Administration of Agricultural Support. In 2014-2020, the data
generated by the Information System for the Administration of the EU Support to the Lithuanian
Fisheries Sector will be analysed and processed using the same ŽŪPAIS tools (different data
reports, staff timesheet reports, etc.). The above tasks will also involve the SDS, which is
planned to be re-integrated into the ŽŪPAIS in connection with the EMFF measures.
Methods to address the identified problems and their monitoring
Where there is a risk of not achieving or a failure to achieve the planned annual
monitoring indicators used for the supervision of performance and/or critical absorption levels,
the Managing Authorities for the EU Structural and Cohesion Funds, RDP and Fisheries
Operational Programme may organise meetings with the intermediate bodies to discuss the
causes of delays and to agree on the solutions of the problems; to initiate evaluations to improve
the investments from the operational programmes and their management and administration; to
give advice to the intermediate bodies concerning corrective actions to deal with the delays; to
issue proposals to the Government of the Republic of Lithuania concerning corrective actions to
be taken by intermediate bodies to ensure that the planned indicators are achieved; to take any
other precautionary and/or corrective actions. If needed, the Managing Authorities may issue
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proposals to the Government of the Republic of Lithuania concerning re-allocation of funding
within the programmes; to issue proposals to the Monitoring Committee concerning amendment
of the programmes, including revision of target monitoring indicators; to restrict the right of
certain intermediate body to undertake new contracting commitments in certain economic sector,
etc.
2.5. Reinforcement of administrative capacity
2.5.1. Reinforcement of administrative capacities among bodies responsible for
administration
In the 2007-2013 programming period, reinforcement of the administrative capacities of
the staff involved in the administration of the EU structural support, the EAFRD and the EMFF
was organised in the following main areas and was funded from the technical assistance
envelope:
- capacity building through the participation in different working groups and meetings
(for instance, round table discussions with social partners, seminars for beneficiaries and
applicants, etc.) to discuss different issues relevant to the administration of the system facilitating
resolution of different problem situations and learning valuable lessons related to administration
of the EU structural support, the EAFRD and the EMFF;
- training, i.e. centralised training on a system level organised by the Managing Authority
of the EU Structural and Cohesion Funds or qualification enhancement institutions (for the staff
involved in the administration of the EU Structural Funds), in-house and inter-institutional
training where institutions shared their experience, and training in accordance with the
institutional plans for staff training (capacity building);
- capacity building by exchanging information via the existing IT systems, i.e. the
SFMIS, www.esparama.lt, the ŽŪPAIS, which facilitate access to relevant information, enable to
communicate evaluations of the system and to develop a framework based on common
standards;
- capacity building through traineeships and missions enabling to get familiar with the
activities of other institutions and good practice examples, and participation in seminars,
conferences and training related to the administration of EU programmes and projects as
organised by the European Commission or other institutions.
In the 2007-2013 programming period, the EU structural assistance administration
systems were developed drawing on the best practices of the 2004-2006 programming period and
improving the legal framework. The ex ante evaluations of the 2014-2020 programming period
have found that the EU structural assistance administration systems of the 2007-2013
programming period are in principle adequate and efficient although the administrative burden
on applicants, project promoters and responsible bodies needs to be reduced, thematic
coordination of intermediate bodies related to the implementation of projects must be
strengthened and cooperation with implementing bodies improved. The study has also revealed
that for the efficient implementation of the public policy (programmes and projects)
administrative capacities are as important as extensive knowledge on relevant public policy areas
and time required for building of such administrative capacities. Therefore in the 2014-2020
programming period, efforts will first of all be made to ensure the continuity of the existing EU
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structural assistance administration systems and to maintain the administrative capacities and
skills built within the MCS institutions.
As of 1 January 2014, the EU Structural and Cohesion Funds administration system had
1227 employees, EAGFRD – 208, EMFF – 47 employees94. Such number of employees is
deemed sufficient because in addition to other staff the relevant functions will be also performed
by the employees with experience from the previous programming period. On the other hand, the
need for human resources is ever changing and depends on the stage of the programming period,
therefore at some stages institutions face quantitative and qualitative lack of staff.
Negative impact on the administrative capacities is made by employee turnover (for
instance, in the EU Structural and Cohesion Funds administration system in 2010-2012 it
comprised 13%). To ensure high quality management of employee turnover processes and to
prevent potential downward tendencies, in 2014-2020, similarly to 2007-2013 programming
period, motivation system will be implemented which among other things might embrace actions
to introduce performance based incentives and other motivating measures (for instance, training,
enhancement of qualification, reinforcing team working skills, work friendly environment, etc.).
Wages for the civil servants and other employees of the ESI funds administration
system, like in 2007-2013 programming period, will be paid from the special technical assistance
funding although in some instances wages may be also paid from the national budget. The
funding for the development of administrative capacities and competences as regards EU
Structural and Cohesion Funds will be taken from the technical assistance.
Staff training plans will be construed with a view to strengthening and better
exploitation of the internal training capacities, i.e. in 2014-2020 programming period the efforts
of more efficient contribution to administrative capacity building will first of all be based on
more active use of internal resources of the institutions: the institutions will be called to share
their knowledge and good practices in the form of trainings or workshops. Drawing on good
practices of other countries, it is planned that apart from the Public Procurement Service other
competent national institutions, in particular those dealing with horizontal issues, such as gender
equality, non-discrimination, sustainable development, state aid, etc., will be more actively
involved in providing methodological support for the administrative institutions of the ESI funds
within the 2014-2020 cycle of programme and project administration. The above institutions will
be involved in the training process enhancing knowledge of the system participants on the
relevant horizontal themes (for instance, the Ministry of Finance would be involved in the
training on the budget structure, financial planning process, etc.). A particular attention in the
2014-2020 programming period will be paid to capacity building in relation to public
procurement, including green procurements. Taking account of the changes in the public
procurement legislation and the priority nature of this area with a view to ensuring proper
administration of the ESI funds the training themes in relation to public procurement, including
green public procurement, are expanded and made more detailed. The same tendency will persist
in the future as well.
In addition to that, participation in the seminars and conferences organised by the EC,
other EU Member States and different organisations will be encouraged; cooperation with other
public institutions in charge of ESI funds administration and implementing bodies will be
reinforced; involvement of external experts will be encouraged to ensure that extensive,
professional knowledge is integrated into the programmes and projects administration processes.
With a view to developing a properly functioning system for building of the
administrative capacities and competencies, in 2011 qualification enhancement framework for
94
The number of employees has been reassessed on the basis of percentage of the functions related to EU Structural
Funds administration to derive the number of employees corresponding to 100%.
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the civil servants and staff of the authorities involved in the administration of the EU structural
assistance and the needed qualifications were analysed. The analysis has revealed that about 50%
of the interviewed staff of the system are little satisfied with the professional development
opportunities. An important reason precluding professional development was the lack or poor
quality of the relevant training or other training measures. The analysis has also revealed that the
staff of the system perceives the importance of professional development and appreciates the
opportunities of enhancement. To make it efficient a systemic assessment of the training needs
and competencies is required taking into consideration the strategic goals set for and the needs of
the system. The analysis has also emphasised the importance of ensuring training/ qualification
in the long-run and indicated that there is a lack of coordination between the institutions involved
in the administration of the EU structural assistance in the areas of planning, arranging and
delivering of training.
To address the problems indicated in the analysis and to create a centralised system for
strengthening of administrative capacities and ensuring the availability of the required
competencies, in 2011 a description (map) of the skills required for the system was prepared
specifying the competencies in every detail the by themes, distinguishing between different types
of institutions and staff levels (beginner, advanced, manager). In 2012, centralised training for all
staff of the system on all themes indicated on the skills map was organised.
In 2014-2020 programming period administrative capacities available in the system will
be analysed. The description of the competencies will be regularly updated, reviewing the
existing and, if needed, adding new competencies and continuing the centralised system-level
training.
Taking into consideration that in 2014-2020 programming period the EU Structural and
Cohesion Fund administration system will involve institutions outside the MCS possessing
competencies that are important for the efficiency of EU Structural and Cohesion Funds
administration, the involvement of these institutions and selection of staff will ensure that the
available administrative capacities meet the requirements applicable to the delegated functions.
In addition to that, the staff of the newly involved institutions will be encouraged to actively
participate in centralized trainings on the themes indicated in the map of competencies. Where
needed, individual training groups will be formed for the benefit of newly involved institutions
thereby securing maximum opportunities to efficiency enhance the administrative capacities of
these institutions. Moreover, efforts will be made to ensure that along with building of the
competence needed for the delegated functions these institutions are integrated into the relevant
information systems.
The reports on the evaluation of the RDP 2007-2013 (for instance, interim evaluation
report on the Lithuanian Rural Development Programme 2007-2013) note that the EAFRD
administration and management system is properly built, i. e. the functions are clearly defined
and distributed between the authorities and departments in charge of EAFRD administration, the
pre-conditions to involve other stakeholders and social partners are met. The beneficiaries have
positively assessed the administration system of the Lithuanian Rural Development Programme
2007-2013 (76 % of the respondents). Just minor differences between the administration and
management procedures compared to the previous periods enable to improve efficiency of
administration (the necessary skills, experience are in place facilitating better preparation to
address the new emerging problems). The strengths of the EAFRD administration system
include: high quality of administration (the administration system is deemed to be transparent
and attractive by the majority of the main stakeholders), continuity of the developed system,
assurance of vertical and horizontal partnership, intensive communication of the support
possibilities and good practices, institutionalised monitoring and evaluation system, efficient
integration of new forms of assistance (finance engineering), simplification of the support
procedures under certain measures, etc. The assessment or the 2007-2013 programming period
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shows that the monitoring data collection and processing systems should be strengthened, while
the administrative capacities should be strengthened only on the basis of the needs analysis.
To ensure prevention of corruption a Lithuanian wide National Anti-Corruption
Programme 2011-2014 was adopted; the programme will be renewed for another 4 years in
2015. Preventive actions to combat fraud and corruption undertaken by all institutions involved
in the implementation of the ESI supported programmes are an integral part of the national anticorruption and anti-fraud system and are based on national legislation setting the core corruption
and fraud prevention principles, goals, measures and legal grounds, subjects of corruption and
fraud prevention efforts, their rights and obligations in relation to corruption and fraud
prevention.
To ensure combating and prevention of corruption and fraud in 2014-2020 in the
context of ESI funds administration proportionate control procedures have been planned for:
identification of irregularities; imposing efficient and proportionate fraud combating measures
and/or procedures of notification about irregularities, including fraud; investigation or
identification of irregularities; recovery of illegitimate disbursements; monitoring of
irregularities and recovery of illegitimate disbursement.
Legislation governing the responsibilities, functions and rights of the institutions
involved in the ESI funds implementation process specify that the Managing Authority and the
intermediate bodies shall within their competence limits put in place and apply fraud prevention
measures, including all elements of fraud prevention cycle (prevention, identification, correction
and decision making) and risk assessment tools (information technologies, etc.), following the
national legislation, European Commission’s fraud risk assessment guidance note and guidelines
on the application of efficient and proportionate anti-fraud measures and information
technologies tools. The Special Investigations Service, on the basis of the Anti-Corruption Law
of the Republic of Lithuania, assesses legal acts and their drafts in terms of anti-corruption and
analyses corruption risk. Prevention of corruption is sought by all public institutions (including
Managing Authority, intermediate bodies and implementing bodies of the ESI funds).
The Financial Crimes Investigation Service under the Ministry of the Interior (FNTT)
is in charge of discovery and investigation of criminal acts and other breaches of the law related
to receiving and using support from ESI funds. FNTT organises training on fraud prevention
issues, holds meetings with the institutions administrating ESI funds with a view to providing
methodological and practical support related to suspected criminal acts associated with illegal
receipt and use of support from the ESI funds; under the procedure prescribed by laws it
provides information to the institutions administrating operational programmes about the
outcomes of their notification on suspected criminal acts; takes part in working groups in relation
to the system of investigation, identification, correction and prevention of project irregularities.
Being in charge of the enforcement of the Law of the Republic of Lithuania on the
Adjustment of Public and Private Interests in the Public Service, the Official Ethics
Commission analyses the issues related to professional ethics or behaviour of the civil servants;
to prevent the conflicts of public and private interests in the public service prepares and
implements precautionary actions with regard to violations of professional ethics and behaviour
standards. The above mentioned law applies to all institutions administrating ESI funds.
Being in charge of the enforcement of the Law on Public Procurement of the Republic
of Lithuania and prevention of its violations, as part of involvement in the implementation of the
operational programmes the Public Procurement Service controls the compliance of public
procurements conducted by the projects with the Law on Public Procurement.
In the context of 2014-2020 programming period, the administrative capacities and the
experience built by the implementing bodies in the administration of the EU structural
assistance, the EAFRD and the EMFF in the 2007-2013 programming period will be exploited to
a wider extent: once a ministry and/or any other public authority identifies areas of intervention
and strategic objectives, the implementing body could prepare detailed proposals concerning
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technical implementation elements of the relevant interventions – potential financing schemes (to
be defined taking into account the need to ensure simple administration of investments and
minimise administrative burden), detailed requirements for the structure of a project budget and
eligible costs (including the use of simplified costs, where appropriate), the special part of the
application form and other technical aspects.
In the 2014-2020 programming period, spreading of good practices will be further
promoted among MCS participants by developing an information exchange tool (IT system)
which would enable institutions to exchange good practices in relation to EU project
administration, relevant experiences (for instance, different risk management procedures) and the
available knowledge (for instance, public procurement practice). Such a tool would also
encourage closer contacts of the institutions, help develop common practices and contribute to
stronger inter-institutional relations.
To strengthen inter-institutional cooperation as well as knowledge and competencies
among the staff of the implementing bodies in different public policy areas, in which they
administer investments of the EU structural assistance, the EAFRD and the EMFF, these
institutions will be encouraged in the 2014-2020 programming period to:
− work closer with ministries and/or other departments of public authorities in charge of
the national policy in the areas supported by individual EU Structural Funds, the EAFRD and the
EMFF;
− work closer with other relevant agencies and ministerial entities (for instance, the
Agency of Science, Innovations and Technology (MITA), the Research and Higher Education
Monitoring and Analysis Centre (MOSTA), ‘Versli Lietuva’, etc.);
− secure more active and efficient involvement of relevant (external) experts.
In the light of the experience developed in the administration of the EU Structural and
Cohesion Funds and with a view to building up of an even more efficient system for
enhancement of administrative capacities and competencies, in the 2014-2020 programming
period the system for enhancement of administrative capacities and competencies will be further
reinforced and opportunities for learning throughout the whole administration cycle of the
operational programmes and projects will be facilitated.
2.5.2. Reinforcement of administrative capacities among beneficiaries
In the 2007-2013 programming period, the strengthening of administrative capacities
among beneficiaries was smooth and raised no major problems. Actions aimed at strengthening
administrative capacities among beneficiaries were funded from the EU technical assistance
envelope for the 2007-2013 programming period as well as through measures of the operational
programmes aimed at consulting beneficiaries and building their capacities. Capacity building
among beneficiaries in the 2007-2013 programming period was focused in the following areas:
- methodological support was provided to beneficiaries primarily through websites
www.esparama.lt and www.parmakaimui.lt, also through websites of implementing bodies,
which posted extensive information about the operational programmes for 2007-2013 (related
legislation, requirements for beneficiaries, check-lists for beneficiaries, calculators, statistical
data and other relevant information), mobile websites, special publications, booklets and other
information instruments. Advisory services are a very important part of methodological support
to beneficiaries. They are of ongoing nature and aim primarily to address specific problems,
explain methodological material and legal changes to beneficiaries (for instance, advisory
services funded by the RDP 2007-2013 help farmers and forest owners properly prepare for the
absorption of the EU support, meet requirements set to farms in relation to use of the EU
support). Advisory services may be provided by telephone, e-mail, in writing, during checks or
meetings, by means of internet telephony (as in the case with the EAFRD Paying Agency).
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Direct communication with applicants and beneficiaries is made in writing, via e-mails, short
messages;
- regional events, for instance, direct advisory services provided bodies responsible for
administration of the EU Structural and Cohesion Funds on site a certain region; a variety of
information events, seminars, open doors in regions or municipalities, round table discussions
with social, economic, regional and institutional partners;
- training for beneficiaries; training activities may be categorised by target groups:
applicants, potential applicants and project beneficiaries. Training subjects cover the project
implementation cycle as a whole and its specific stages: project preparation, application and
evaluation, project implementation (administration). Implementing bodies organise training to
address horizontal project implementation issues, for instance, proper declaration of expenditure
subject to the specifics of the projects administered. The major part of such horizontal training in
2007-2003 was dedicated to issues related to proper public procurement. Training activities are
organised taking into consideration the competence level of participants (for instance, as
practiced by the ESF Agency) – training is organised for beginners and advanced participants.
Training participants are grouped by their preparation level determined by questionnaires where
they identify their experience and competence. Questionnaires are also used for identifying
subjects of interest to beneficiaries. Training programmes are drawn up on the basis of the
feedback. As to the training organised by implementing bodies in the 2007-2013 programming
period, beneficiaries are satisfied with the quality and relevance of the training. It is proved by
the feedback of participants in their questionnaires. Successful implementation of projects
depends on the competence of beneficiaries, therefore training activities aimed at strengthening
specific skills are also held (for instance, training activities by the Information Society
Development Committee under the Ministry of Transport and Communications on IT projects
were assessed by beneficiaries as very useful for their activities).
In 2007-2013, the Centre for LEADER Programme and Agricultural Training
Methodology subordinate to the Ministry of Agriculture actively contributed to the strengthening
of administrative capacities among EAFRD beneficiaries; this Centre methodically coordinated
ongoing professional training and organised professional development for stakeholders from the
agricultural and rural development sectors, subject to the specifics of EAFRD projects;
undertook information and educational activities related to the capacity of stakeholders from the
agriculture and rural development sectors to properly implement projects supported under
measures of the RDP 2007-2013. Farmers and forest owners could advance their knowledge on
the compliance with legal requirements in relation to farm management and good agricultural
and environmental condition, get advice in relation to access to support under agriculture-related
environmental measures, financial accounting of farm’s operations, farming in a forestry holding
through advisory services funded by the RDP 2007-2013 measure ‘Use of advisory services’.
These advisory services helped farmers and forest owners properly prepare for the absorption of
EU support and meet requirements applicable to farms in relation to EU support.
- other measures, for instance, the initiative ‘project beneficiary to project beneficiary’
aimed to build a network of beneficiaries, collection of applications in regions (as practiced by
the EAFRD paying agency) closer to beneficiaries, discussions with beneficiaries on project
implementation sites, etc.
In the 2014-2020 programming period, the patterns and scope of capacity building
among beneficiaries will be similar to those in 2007-2013 and will be further financed from the
technical assistance envelope. Capacity building among beneficiaries will also be pursued
through different information events – seminars, open days in regions and municipalities for
potential applicants and beneficiaries, regional opinion leaders, round table discussions for
beneficiaries and social partners. These events will introduce calls for applications as well as
discuss relevant project implementation aspects, benefits of EU support, generated added-value,
efficiency and administration. Other activities include: organising training with a particular focus
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on the introduction of new legal acts or amendments to the existing legal acts, new or revised
current administration processes, information system administration aspects; providing
individual advice; facilitating the availability and exchange of information in an electronic
format; arranging communication via mass media to ensure the efficiency of information on the
EU Structural and Cohesion Funds and support for rural development and fisheries as well as to
inform the public about the outcomes of EU-funded measures and initiatives.
In the 2014-2020 programming period, administrative capacities of other important
stakeholders—social economic and regional partners (including non-governmental organisations)
—will be strengthened to facilitate their involvement in the ESI Funds process. To this end, they
will be able to take part in the trainings funded from the technical assistance envelope. Training
modules for partners will cover the following subjects:
− training to enhance competence in relation to representation of interests (forms of
representation, identification of problems, choosing the appropriate form of representation,
identification of the target group, other groups with common interests, foreign good practice in
partnership/representation, etc.).
− possibilities for partners to participate in the ESI Funds process.
− other specific training to allow partners to get familiar with the characteristics of the
ESI Funds administration systems.
Training plans for the 2014-2020 programming period will take into account the needs
of potential participants, tailoring training activities to knowledge and competence of
participants. In 2014-2020, the drafting of methodological information to potential beneficiaries
will be reinforced, waiting periods in relation to advisory services and feedback shortened,
workshops on how to fill in documentation organised and, if needed, smaller groups of
participants formed.
2.6. Reducing administrative burden for beneficiaries
Real efforts to reduce administrative burden for beneficiaries were already initiated
back in the 2007-2013 programming period. As part of preparations for the 2014-2020
programming period and on the account of ensuring a more efficient EU Structural and Cohesion
Funds administration and a reduced administrative burden, the efficiency the EU Structural and
Cohesion Funds has been measured.
The EU Structural and Cohesion Funds administration system in Lithuania is more
oriented to medium and large scale projects, but the requirements to projects and their
administration practice are poorly differentiated by project size. Given it, the increasing
efficiency and reliability (regularity) of the EU Structural and Cohesion Funds administration in
the 2014-2020 programming period should be pursued through:
 differentiation of project requirements subject to project size or the amount of
costs category, i.e. more active application of the proportionality principle, for instance:
− in the 2014-2020 programming period the practice for justifying costs declared in
payment requests will be significantly revised: for declaration of small costs and wages a
possibility will be considered to ask for a summary or a statement of justifying and supporting
documents; for declaration of wages a possibility for implementing bodies to refer to databases
of the State Social Insurance Fund Board under the Ministry of Social Security and Labour or to
apply alternative ways to justify the expenditure will be considered.
− in the 2014-2020 programming period, in the investment areas dominated by smaller
projects requirements for applicants and beneficiaries will be simplified by standardising the
investments, requiring shorter application forms (e.g. when implementing global grants), wider
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use of simplified costs, etc. As to larger infrastructure projects, the complexity of projects will be
reduced, indirect and overhead costs will be reimbursed on the basis of simplified costs methods.
 reduced complexity of intervention areas dominated by ‘soft’ projects. The
evaluation has revealed that in the current administration system the administrative costs of
small-scale projects are similar to those of large-scale projects. Therefore actions will be taken to
reduce administration costs for soft projects by:
− standardising investments, limiting the variety of eligible activities and costs
categories;
− wider application of simplification measures; to maximise the benefits provided by
simplified costs, measures based only on simplified costs will be applied (in particular for
measures of the operational programmes dominated by smaller projects). In individual cases,
projects will have to meet certain pre-conditions (for instance, a pre-condition could be a drafted
and accredited study programme, and the project implementation would cover only fixed costs
related to the delivery of the teaching process).
 expansion of the scope of application of simplified costs for infrastructure
development projects supported by both the ERDF and the Cohesion Fund. It will help
significantly reduce the complexity of projects, allow project beneficiaries and implementing
bodies to focus on the main project components and reduce administrative burden. Practices
related to the application of simplified costs must be applied consistently and must not be
modified, while in order to achieve a real effect they have to be introduced to a wide range of
applicants and project beneficiaries;
 improvement of legal acts governing applicants and project beneficiaries following
the principles of:
− user-friendliness: legal acts tend to change much, while the EU Structural and Cohesion
Funds website not always posts the latest version (sometimes out-of-date versions of legal acts
may be posted), sets of documents for applicants and project beneficiaries may be not
comprehensive enough, etc. In the 2014-2020 programming period, consolidated versions of
legal acts will be posted, the quality of information issued to applicants and project beneficiaries
will be further improved;
− stability: once published, the set of terms and conditions applicable to a certain area of
intervention should not be changed at a later stage (or changed only in specified cases).
 employment of information systems to reduce administrative burden:
In the 2007-2013 programming period, a significant qualitative shift was noticed (it was
firstly associated with the realisation of the possibility of data exchange between project
beneficiaries and bodies responsible for administration), resulting in reduced administrative
burden for project beneficiaries and in increased efficiency of bodies responsible for
administration of the EU Structural Funds. A wider use of information systems in the 2007-2013
programming period resulted in reduced administrative burden for project beneficiaries.
Reducing administrative burden is primarily related to the use of electronic (automated) forms
and electronic data exchange. One of the most significant improvements of the information
systems for the EU Structural and Cohesion Funds administration is the development of a Data
Exchange Website (DEW) for project beneficiaries. On the basis of these developments, new
stages for the advancement of the SFMIS will focus on maintaining the available functionalities
and releasing additional ones.
Further development and upgrading of the information systems in the context of the
2014-2020 programming period will cover:
− adapting the DEW both to project beneficiaries and applicants;
− wider use of electronic (automated) forms for the purpose of both the DEW and the
SFMIS;
− ensuring electronic data exchange, refusing printed information;
− wider integration of the SFMIS with databases of other public authorities, ensuring
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automated data exchange;
− the widest possible standardisation and electronisation of different administration
processes.
Table 10. Reducing administrative burden of the EU Structural and Cohesion Funds in 2014–2020
Measures to reduce administrative burden of the EU Structural and
Cohesion Funds in 2014–2020
Differentiation of requirements to projects on the basis of project size or
cost category, i. e. more active application of proportionality principle:
Rules on financing and administration of the projects
Recommendations for compliance of project costs to financing requirements
Reducing complexity of the investment areas dominated by ‘soft’ projects
Rules on financing and administration of the projects
Terms and conditions of project financing
Expanding the scope of application of cost simplification to include
investment projects funded by ERDF and Cohesion Fund
Rules on financing and administration of the projects
Recommendations for compliance of project costs to financing requirements
Deadline of the measure
(half, year)
1st half, 2014
2nd half, 2014
1st half, 2014
2nd half, 2014 – 2nd half,
2020
1st half, 2014
2nd half, 2014
To reduce the administrative burden for beneficiaries of the EAFRD and EMFF support,
in the 2007-2013 programming period the EAFRD administration system was revised and
certain solutions were introduced, contributing to an efficient reducing of administrative burden;
as to the information system for the administration of EU support to the fisheries sector, the
information system for the project administration is still at the installation stage and therefore no
evaluation or study has been conducted yet. Good timing for such evaluation to be performed
would be the 2014-2020 programming period. The Ministry of Agriculture, being responsible for
administration of EU support to rural development and the fisheries sector in 2007-2013,
together with the National Paying Agency under the Ministry of Agriculture (the NPA) took a
number of actions to reduce administrative burden for applicants and project beneficiaries:
− where necessary, data are taken directly from the Residents’ Register Service (the
RRS), the State Social Insurance Fund Board under the Ministry of Social Security and
Labour (the SODRA), the State Tax Inspectorate (the STI);
− the NPA has access to other registries and databases and, whenever possible, is using
the data stored in different registries and public information systems without disturbing
applicants and beneficiaries from the fisheries sector;
− printed versions of certain additional documents submitted together with applications
have been refused;
− the submission of documents has been simplified;
− mandatory submission of approved copies of applications and supporting documents
has been refused;
− applicants and beneficiaries are able to receive information in different forms (in
writing, e-mail, telephone);
− the implementation of small value projects under certain measures of the RDP 20072013 and certain measures of the Lithuanian Fisheries Operational Programme 20072013 was based on a simplified procedure.
As to rural development, in addition to the actions listed above aimed at the reduction of
administrative burden and undertaken with regard to EU support to both rural development and
the fisheries sector, the following additional solutions have been applied:
− where feasible, data on the violations of cross-compliance requirements identified by
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other public authorities or the State Food and Veterinary Service are sent online;
− data from the land parcel identification system (the LPIS) are sent online;
− fields to be declared are mapped electronically only; applicants are able to fill in and
submit online applications for support for land;
− beneficiaries are able to revise their banking and personal data on the NPA website;
− requirements applicable to beneficiaries under specific measures of the RDP 2007-2013
were simplified;
In the 2014-2020 programming period, following the requirement of the Common
Provisions Regulation to ensure that (project) beneficiaries are provided with the possibility to
submit all information to bodies responsible for administration of the EU Structural and
Cohesion Funds using electronic data exchange systems as well as to ensure that equivalent
information is not required repeatedly, administrative burden for EAFRD and EMFF
beneficiaries will be further reduced through the following actions:
− efficient drawing on the good practice in the reduction of administrative burden gained
in the 2007-2013 programming period (constantly);
− analysing the process for administration of applications in order to identify and remove
unnecessary and redundant processes/actions with the aim to employ IT systems the
administration of application in the most efficient manner (2nd half, 2014);
− ensuring that the information system administered by the NPA allows applicants to
connect to the information system and receive the required data on the status of the
administration of EAFRD and EMFF-funded projects (2nd half, 2014);
− developing an information system for services provided by agencies and bodies
regulated by the Ministry of Agriculture, which would ensure a two-way
communication between the applicant and the NPA (2nd half, 2014);
− a wider application of simplified costs (2nd half, 2014);
− upgrading the existing information system by installing maximum automation of
processes (in terms of administration, on-site checks) (basic works in 2nd half, 2014;
later – ongoing);
− reinforced cooperation with other public authorities to reduce the number of repeated
visits to beneficiaries by different institutions (constantly).
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3. INTEGRATED APPROACH TO TERRITORIAL DEVELOPMENT
The integrated approach to territorial development addresses challenges to sustainable
territorial development as specified in Section 1.1.2.3 ‘Territorial Development’.
The country’s economic potential together with the largest employment opportunities it
brings is focused on five major cities. These cities have the potential to tackle unemployment
problems in a wider region.
To achieve this goal, it is crucial to effectively use conversion possibilities in former
industrial territories, the investment potential of urban sub-centres, pericentres and centres,
creating jobs for urban population and population from the surrounding areas.
Depopulation (in particular, in shrinking cities) leads to reducing economic activity,
limited accessibility of services and environmental problems resulting from inefficiently used
urban and social infrastructure.
Adaptation to demographical changes and balancing of migration flows will be ensured
by converting the existing abandoned or ineffective infrastructure (including liquidation of
pollution, refurbishing and reusing of former contaminated sites) and improving its functionality,
raising the quality of living environment and living conditions.
Misbalanced economic structure in small and medium-sized cities, surrounding regions
and municipalities do not ensure sufficient employment opportunities. The labour market of
smaller municipalities is characterised by narrow specialisation, high dependency on specific
sectors and enterprises (mostly, manufacturing).
Preconditions for the diversification of urban economic activities and employment are
created by the productivity of manufacturing and related sectors as well as wages (purchasing
power) in traditional industrial centres that are increasing faster than in any other sectors.
However, using this potential to the fullest to help larger part of the society integrate into the
labour market requires promoting the diversification of economic activities in small and
medium-sized cities. It also requires functional and well used city centres attracting large
numbers of visitors.
Social and economic potential of cities cannot be used because of poor interaction
between cities (especially small and medium-sized cities) and surrounding territories, large
differences in accessibility (geographical exclusion), inefficient local or regional public transport
system (covering both the regional centre and surrounding territories). They also cause
environmental problems in cities (environmental pollution, transport noise).
For this reason, cities will firstly have their economic activities stimulated. Investments
will be targeted at urban redevelopment (conversion) and territorial development, raising the
quality of living environment and living conditions, integrating these territories and improving
their accessibility, leading to increasing employment opportunities in the entire metropolitan area
and region (through the implementation of sustainable urban development actions).
Small and medium-size cities, especially in more remote regions, will have a highquality, clean and safe living environment, which is necessary for addressing demographical
problems, maintaining qualified workers (ensuring the development of basic economic sectors in
future), exploiting the potential of sites of attraction for better investment environment and new
jobs, and improving mobility opportunities for people living in these cities or surrounding
territories.
Demographic problems, poverty, poor accessibility of public services are in particular
evident in rural areas. A low education level and a lack of entrepreneurship are among the major
causes of unemployment in remote, usually rural areas. Moreover, a large share of the employed
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rural population works in the agriculture, forestry and fisheries sectors. The development of
untraditional (alternative) rural economic activities is still insufficient and together with sluggish
job creation leads to slow employment growth among the rural population. As the experience in
implementing the LEADER method (see Annex 4) in rural and fisheries areas show, communityled instruments contribute to effective solution of many problems in small areas.
Sustainable and resource efficient economic growth that contributes to job creation may
be ensured by inclusive actions taken to restore target territories (cities or parts thereof) and
increase the attractiveness of living and investment environment.
Investments into urban areas to ensure their complexity and input, address economic,
social, demographical, environmental and climate change-related problems will come in a form
of integrated territorial investments (ITIs). ITI-based investing will help create a development
strategy adapted to individual challenges and potential of every territory (an integrated territorial
development programme), covering both complex (URBAN-type) and sectoral (transport,
environment, social inclusion, employment) measures to address typical problems and improve
the interaction of territories.
Although the EAFRD and the EMFF will not be used directly for ITIs, cooperation
projects among LAGs of urban, rural and fisheries areas will be supported.
Coordination of investment actions (by the ERDF and the Cohesion Fund) aimed at
urban development and ESF-supported actions with partners engaged in CLLD and the
involvement of such partners into the planning of investments will help ensure an integrated
approach at the local level.
All ITI programmes will be drafted and implemented in consultation with communities
and socio-economic partners of urban and target territories. As a result, parts of these
programmes focused on fight against social exclusion and solution of unemployment problems
by direct support will also be implemented as CLLD. All they have to do is to identify the main
challenges, tasks and priority areas of joint actions.
Figure 2. Integrated territorial development model
Integrated territorial development programme
(strategy) (using ITIs)
Complex projects (specific
task 7.1.1 of OP priority 7)
City/cities
ITI territory
Target
territory
Demography
Links with suburban/rural territories
Economy
Social development
CLLD (specific task 8.6.1 of
OP priority 8)
Environmental protection
Climate change
CLLD outside the
target territory
(optional)
Urban/rural cooperation
Rural CLLD
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Other priorities of the
Operational Programme – input:
transport, environmental
protection, energy, reducing
socialexclusion,
entrepreneurship, etc. (for
specific problems)
Draft Partnership Agreement
Addressing challenges related to the development of rural areas require community-led
initiatives (which are most effective in small residential areas with strong relations among
residents). With this regard, the implementation of community-led initiatives and the application
of the bottom-up approach will continue in rural areas in 2014-2020. LEADER (CLLD) is aimed
at balanced and integrated territorial development, tackling social, economic, environmental,
educational and cultural problems, eliminating social and economic gaps between urban and
rural areas.
In the 2014-2020 programming period, the development of fisheries areas based on
good practice will be further continued as community-led initiatives.
Recently, Lithuanian regions (not only) that depend on fishery have been experiencing
significant economic and social difficulties: shrinking income from fishing, growth of
unemployment, obvious ageing tendencies among qualified employees living and working in the
regions dependant on fishing. To ensure the sustainable development of Lithuanian fisheries
areas, it is crucial to cover three equally important elements, namely environmental protection,
economic development and social development. A compromise must be found among
environmental, economic and social objectives set for these areas to reinforce regional
competitiveness, improve welfare of the local population and raise the quality of living
environment. The aim is to focus efforts of fishing-dependent areas on the value-added of the
fisheries business and the diversification of activities as well as the implementation of the
regional dimension of the CFP, while ensuring effective and proper use of the EMFF within the
context of integrated CLLD and supporting balanced territorial development. Higher
environmental quality in fisheries areas is a requisite for raising the quality of life among the
local population and promoting entrepreneurship, making regions more competitive, attractive
and safe for future generations. Cooperation will be promoted among fisheries areas to enable
them to exchange good practice and knowledge.
ESF-funded CLLD will be implemented in urban areas (municipal centres and cities
with the population over 6,000). CLLD will be implemented as mandatory part of ITIs in target
territories in larger cities, where ITIs support sustainable urban development actions. The aim in
other cities is to ensure the complementarity between CLLD and ITIs, regional and local
strategies (during the selection process).
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3.1. Integrated approach to the use of support for the territorial development of
specific sub-regional areas
3.1.1. Community-led local development (CLLD)
3.1.1.1. General concept
Urban areas. To increase the investment attractiveness of cities and contribute in this
way to their integrated economic growth, ESF resources will be earmarked under priority 8
‘Increasing social inclusion and support to fight against poverty’ of the Operational Programme
for the EU Funds’ Investments in 2014-2020 and implemented through CLLD as mandatory part
ITIs in target territories of larger cities.
Effective contribution of activities implemented as CLLD to ITIs supporting integrated
sustainable urban development actions and other ITI programmes requires changes in the
implementation of supported activities, related to the social element of ITI programmes, namely,
the involvement of inactive social groups (those who are not looking for a job or studying, longterm unemployed) from urban areas or their parts into the labour market (with a help of the
society, NGOs, social partners). The aim is to make these persons actively look for a job, study
or work, while enterprises and associated business structures participating in the project would
create better employment opportunities for them. NGOs and local government would receive
more help from the community in dealing with other social problems.
Looking at the experience in implementing the LEADER method in 2007-2013, some
of the ESF-supported investments in cities, directly related to local issues, will be implemented
under the top-down approach – addressing such challenges as social exclusion and poverty in
isolated urban territories, integrated urban regeneration (promoting employment in small and
medium-sized cities) via LDSs.
Specific LDSs designed by LAGs are selected based on their input and compliance with
integrated territorial development programmes and other strategic documents applicable to
territories (including regional development plans).
Rural areas. In the 2007-2013 programming period, as the application of the LEADER
method was picking up speed and there was no relevant experience, this method was
implemented in a limited scale, i.e. LDS objectives and measures had to be related exclusively
with RDP 2007-2013 Axis III ‘The quality of life in rural areas and diversification of the rural
economy’. In the 2014-2020 programming period, however, the scope of LEADER (CLLD) will
be expanded. Rural LAGs have the right to plan measures which, subject to specific needs of
LAG territories identified by a case analysis, contribute to the implementation of different RDP
objectives and priorities.
The main objectives set to the LEADER (CLLD) method include promoting social
inclusion and combating poverty (thematic objective 9 of the Common Provisions Regulation),
promoting rural entrepreneurship, youth inclusion and employment (thematic objective 8 of the
Common Provisions Regulation).
LDS or LAG cooperation projects could also pursue other objectives, such as the
promotion of social and organisational innovation, the use of IT among community members,
agricultural enterprises, the use of RES, environmental infrastructure, including green
infrastructure, lifelong learning, the preservation of biodiversity. Striving for these objectives
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will contribute to the implementation of thematic objectives 1-6 and 10 of the Common
Provisions Regulation.
LEADER (CLLD) is primarily aimed at balanced integrated territorial development in
rural areas through the implementation of priority 6 of EU rural development, promoting social
inclusion, combating poverty and economic development in rural areas. The implementation of
LEADER (CLLD), especially LDSs, will help implement other priorities of EU rural
development. Specific target areas for priorities of EU rural development, which may be chosen
and implemented through LEADER, are set out in the RDP 2014-2020.
Fisheries areas. Lithuanian fishing-dependent regions have been facing many
economic and social difficulties. The reasons are mostly the same as described when discussing
problems of other Lithuanian sectors (effects of the economic crisis, etc.). The EU support used
for coordinating fishing capacities with fishing resources and thus contributing to the sustainable
use of fishing stocks significantly reduced fishing capacities in the open Baltic Sea and at the
coasts of the Baltic Sea and the Curonian Lagoon, and enterprises and/or their workers retiring
from fishing had to adapt to changes. To keep the balance between fishing capacities and
resources and ensure the sustainable use of resources, the quantitative development of the
fisheries sector is virtually impossible. Even though the competition for fishing resources
partially reduced after some of the participants in the fisheries sector retired, one of the most
acute problems—old and economically inefficient vessels—still remains. Limited efficiency of
many fisheries enterprises lead to a situation where it becomes increasingly difficult to make a
living of fishing in Lithuania and young people are little interested in this activity. Workers in
the fisheries sector often lack active involvement in the creation of their own welfare and
initiation of the effective development of the fisheries sector. In this context, the involvement of
communities in the management of the fisheries sector and the creation of public goods is one of
the most effective instruments enabling sustainable development of fisheries areas and better
quality of life on the basis of local initiatives and partnerships. One of the key aspects in the
creation of value-added is the promotion of cooperation and partnership among fisheries areas,
the private sector and the public sector.
The principle of CLLD is applied in the fisheries sector to achieve thematic objective 8
of the Common Provisions Regulation. The following objectives to be implemented through
CLLD will contribute to the implementation of specific tasks of ‘Increasing employment and
territorial cohesion in fisheries areas’ of EMFF Union priority ‘Increasing employment and
territorial cohesion’: increasing added-value, creating jobs, and promoting innovation at all
stages of the fisheries and aquaculture supply chain; supporting diversification and job creation
in fisheries areas, in particular in other maritime sectors; promoting lifelong learning and
creating jobs in fisheries areas; increasing environmental resources in fisheries areas, including
combating climate changes and fostering the heritage of fishing in fisheries areas.
3.1.1.2. CLLD territory
Urban areas. When supporting CLLD, the priority is given to territories where ITIs and
integrated sustainable urban development actions are implemented.
CLLD is a mandatory part of ITIs for territories of integrated sustainable urban
development actions, i.e. target territories identified in 5 major cities (up to 7 target territories,
with the average population of 30,000–40,000 each).
In the competitive selection of strategies other ITI implementation territories are
prioritised (in the category of small and medium-sized cities, which includes cities with
population over 6,000 and smaller municipal centres):
− identified target territories (in these areas CLLD is implemented as part of ITIs, where
the CLLD strategy contributes to the integrated territorial development programme);
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−
−
territories related with target territories;
target territories identified in 2007-2013 (territories of transitional period).
CLLD-supported actions may also be implemented in other cities with population above
6,000 and smaller municipal centres (including parts of large cities, small towns and mediumsized cities where ITIs will not be implemented), where they are clearly conducive to the
implementation of the Operational Programme for the EU Funds’ Investments in 2014-2020
(selecting strategies through tender).
A territory of an urban LAG refers to a part of a city, a city with a population above 6
thou, a city with the status of a municipal centre, or an agglomeration of several cities, with the
population above 6,000 or with the status of a municipal centre, with the total population from
6,000 to 150,000.
An exception is provided for to ensure the contribution of CLLD to the implementation
of ITIs in territories where integrated territorial development programmes are run, i.e. in cities
with the population above 6,000 and in smaller municipal centres. The population in most of the
Lithuanian municipal centres is under 10,00 (25 of 55 municipal centres). In sparsely populated
areas, however, these cities perform the same functions and deal with the same challenges as
larger urban centres.
The aim is to implement LDSs in socially, economically, and geographically single
territories, but this would be virtually impossible if geographically separated cities whose
communities are not connected with each other in any way are artificially merged.
In case of extraordinary conditions (very sparsely populated areas, natural obstacles,
large distances to the closest city or agglomeration, population changes) which prevent from
forming a LAG where at least 6,000 people live, even LAGs with a smaller population can draw
up LDSs if the body coordinating CLLD in urban territories deems they are fit to do so.
Rural areas. In the framework of 2014-2020 programming period the selection of LDS
will be based on the conditions that will ensure that the support is granted to the highest quality
LDS. In a competitive selection of LDS particular emphasis will be on their quality (quality of
the LAGs' partnership, scope of community involvement, consistency of goals and measures
with the specifics of the territory, etc.) In accordance with the LDS assessment method, score
will be granted for individual parts of the strategy (the LDS with the score less than 70 out of
100 will be excluded). The outcome of the selection will determine the number of LDS to be
implemented in rural areas and their territorial coverage. LDS selection model is described in
RDP 2014-2020.
A territory of a rural LAG refers to an area with the total number of population from
6,000 to 150,000 covering residential rural areas (small towns, villages and single-homestead
settlements), as well as towns with population under 6,000 (except for municipal centres). The
density of population in rural areas where LDS will be implemented is very small - 15.7
person/km2 and comprises only one third of the country's average (in EU-27, the average density
of population in rural areas is 51 person/km2). Taking into consideration a small density of the
population in rural areas in Lithuania as well as the fact that rural areas are dominated by
wooded territories which is the reason why villages are remote and scattered, it is appropriate to
implement LDS of rural areas in the LAG represented territories covering the population of at
least 6,000 but not exceeding 150,000. The possibilities of more efficient participation in the
development processes of the place of residence and the community is hence facilitated for the
population of rural areas thereby consistently contributing to the implementation of sustainable
development policy. The good practice of the 2007-2013 period shows that small rural LAGs
representing territories with population from 6 to 10 thou, by mobilising active community
organisations, other NGOs and representatives of the civil society are capable of efficient and
smooth organisation of people for joint actions, strategic planning of local development and
implementation of specific actions (if the boundaries of the territories represented by rural LAGs
created in the context of 2014-2020 coincided with the boundaries of the administrative
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territories represented by the municipalities, there would be 4 rural LAGs representing
population from 6 to 10 thou: Pagėgiai, Kalvarija, Kazlų Rūda and Druskininkai).
In addition to that, social partners consider (2012 survey of LAGs of rural areas and
fishery sector) that the structure of the territories represented by rural LAGs in 2007-2013 should
be maintained without restricting 'bottom up' initiatives, building of new partnerships and
freedom of establishment, the good practice should be continued enabling to implement LDS in
socially, economically and geographically integral territories coinciding with municipal
boundaries. In 2007-213 99% of the territories represented by rural LAGs coincided with the
territories of the administrative units (municipalities). Such coinciding of the LAGs with the
territories of the administrative units (municipalities) in the 2007-2013 programming period
(compared to the implementation of pilot LDS implemented in 2004-2006 programming period
in accordance with the Single Programming Document of Lithuania) has led to smooth and
efficient implementation of LDS, more active interest and involvement of the people into the
implementation of the strategies and satisfaction with LAGs’ activities and benefit provided for
the specific territory.
Fisheries areas. A fishery and aquaculture region refers to a region covering a seaside,
bank of a river or a lake, including ponds and river basins, where many employees work in
fishery or aquaculture sector, which from the functional point of view is geographically,
economically and socially related and designated for this purpose by the state.
3.1.1.3. CLLD sources of financing
Urban areas. CLLD in urban areas will be funded by the ESF. The estimated budget is
LTL 50 million (EUR 15 million, of which EUR 6 million are earmarked for the sustainable
development actions implemented in target territories of 5 major cities); for the first call for
applications, strategies will be selected within 2 years after the approval of the Partnership
Agreement. The CLLD model has not been applied for rural areas before, therefore in the mid of
the implementation period, if applicants are very active, additional funding for the second call
for applications may be considered. In such a case, strategies will be selected by the end of 2017.
CLLD complements measures/projects initiated by local government (including those
implemented as ITIs) by measures/projects that are relevant for the community. The main urban
infrastructure (water management, transport, etc.), however, should not be a CLLD object.
CLLD in urban areas should be limited to ESF-supported investments.
Rural areas. The LEADER (CLLD) measure is implemented in rural areas. At least 5%
of funding it receives from the EAFRD (the exact amount is indicated in the RDP). Rural LDSs
will be selected and approved in line with in Article 33.4 of the Common Provisions Regulation.
Fisheries areas. In the programming period 2014-2020, around 17.4% of the EMFF
funding will be allocated to the CLLD instrument in fisheries areas.
Multi-funding and CLLD. Possibility for bisectoral integrated LDSs funded by the
EAFRD and the EMFF is provided for those LAGs, the territory of which covers rural areas and
fisheries areas. Such LAGs must meet relevance requirements set to LAG partnership (rural
areas and fisheries areas), LDSs, LAG territories and public finance management capacities.
LDSs financed by several funds will be selected in accordance with similar selection principles
applied to LDSs financed by one fund. Where the implementation of the LDS selected is
supported by more than one fund, a controlling fund will be selected. In such a case, running
costs of the LDS implementation and active adaptation costs will be covered by the controlling
fund. The controlling fund (the EAFRD or the EMFF) will be determined during the selection of
two-sectoral LDSs.
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3.1.1.4. CLLD integrated approach
Coordination of top-down investment actions as part of the ITIs aimed at urban
development and supported by the ESF will help ensure an integrated approach at the local level.
It has been envisaged that ITI-based integrated territorial development programmes will be
subject to mandatory consulting with the community, social and economic partners. For the
purpose of shaping LDSs, their content is determined by the bottom-up approach, which means
that the initiative belongs to the LAG which also involves representatives from the local
government (with no power of majority). When selecting LAG-initiated strategies for financing,
their input into the implementation of ITI objectives or other national or regional development
objectives (established in regional development plans) will be assessed, thereby ensuring the
synergy between the resources available to the central government, the local government and
LAGs.
At least 5% of the financing earmarked for LDSs of urban LAGs must be devoted to
projects that are aimed at common objectives and for the results of which to be achieved a
related mirror project must be implemented in the territory of another LAG (for instance, training
in accordance with agreed curricula delivered in several territories of the LAGs based in urban,
rural and fisheries areas). A maximum 10% of the financing earmarked for LDSs of urban LAGs
may be devoted to the implementation of cooperation projects (where actions are implemented
together with partners from the territory of other LAGs and steps over the boundaries of the
LAG’s area).
Integrated approach on a local level is also ensured by the implementation of LDSs
supported by the EAFRD and the EMFF in overlapping territories of the LAGs based in rural
and fisheries areas, where two-sectoral LAGs (representing rural and fisheries areas) decide to
draft and implement them. Synergy among the EAFRD, the EMFF and the ESF will also be
ensured by these additional means:
− granting EAFRD, EMFF and ESF resources to projects aimed at cooperation of LAGs
from different sectors (i.e. rural, fisheries, urban and mixed LAGs representing more than one
sector);
− enabling LAGs and communities from all sectors to be applicants under certain
measures of the EAFRD, the EMFF and the ESF, which could be more efficiently delivered
through initiatives and efforts by people or communities formed by them;
− ensuring an integrated approach when using the ESI Funds in a specific sub-regional
territory where several LAGs are bordering or overlapping and several ESI Funds are used:
− during the selection of LDSs, when assessing their complementarity to strategic
documents (regional development plans and integrated territorial development programmes)
implemented in a specific LAG territory;
− in case of urban CLLD, by supporting cooperation projects (as an integral part of a
LDS) beyond the CLLD territory, which contribute to stronger city-city, city-suburb or cityurban area links and solution of common challenges.
3.1.1.5. Coordination of CLLD implementation, the role of LAGs
As part of coordination of the strategies implemented by urban LAGs and promoting
cooperation of these LAGs:
CLLD in urban areas will be coordinated and administered by the Ministry of the
Interior (which will perform functions of an intermediary body).
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The body coordinating CLLD in urban areas will assess whether a LAG is eligible to
prepare and implement a strategy before providing preparatory support.
The Ministry of Agriculture will administer and coordinate the implementation of
LEADER (CLLD) in rural areas and CLLD in fisheries areas.
Role of rural LAGs. The aim is to have rural LAGs that are open and transparent
organisations which initiate rural development processes, introduce innovative ideas, reinforce
urban-rural relations, disseminate the good practice and encourage the involvement of
inhabitants within a LAG territory. A LAG must ensure partnership and cooperation among three
sectors—nongovernmental (civil society), business and local government—based on
transparency, openness, new members and proper coordination of public-private interests. Rural
LAGs, drafting and implementing LDSs, bring together their communities. They also perform
tasks set out in Article 34.3 of the Common Provisions Regulation.
As to fisheries areas, LAGs responsible for the implementation of LDSs of the fisheries
areas they represent through local projects take part in decision-making processes, cooperate
with social and economic partners, maintain territorial and international cooperation contacts,
participate in training, provide guidance. Local projects are proposed and implemented by local
applicants from the fisheries area.
LDSs drafted by LAGs will be selected and approved by Joint LDS Selection
Committees. LDSs of LAGs representing rural and fisheries areas will be selected by a Joint
LDS Selection Committee which must include representatives from rural development and the
fisheries sector. Selection committees will consist of representatives from sectoral ministries (in
charge of the relevant area), the Ministry of Agriculture, the Ministry of the Interior, the Ministry
of Social Security and Labour (as ministries responsible for the coordination of the policy of
national communities), social and economic partners, the Managing Authority of the EU
Structural and Cohesion Funds.
Coordination mechanism of territorially overlapping LDS. Taking into
consideration the potential territorial overlapping between the territories where unisectoral LDS
of rural LAGs and unisectoral LDS of fishery LAGs are implemented as well as between LDS of
urban LAGs and LDS of fishery LAGs, efforts will be made to ensure complementarity and
synergy of territorially overlapping LDS and elimination of double funding risk:
- At the LDS preparation stage: communication and cooperation between LAGs preparing
LDS in overlapping territories is required; LDS must contain information about its
compatibility, complementarity and synergy with the LDSs of other LAGs approved in
the relevant LAG’s territory;
- At the LDS evaluation stage: the institutions evaluating LDSs of different sectors must
cooperate and share information about the territories and the contents of the evaluated
LDS (priorities, goals, objectives and the supported measures); by communicating with
the LAGs having submitted the LDSs they must take actions to secure complementarity
and synergy of LDSs and elimination of double funding risk;
- At the LDS approval stage: Where the territory envisaged by an LDS submitted to an
LDS selection committee overlaps with the territory of an already approved/ submitted
for approval LDS, then a justified conclusion of the institution having evaluated the LDS
concerning complementarity and synergy of the overlapping LDS as well information
about the measures to prevent double funding must be submitted to the LDS selection
committee along with the LDS evaluation report.
- At the LDS implementation stage: the institutions involved in the supervision of LDS
implementation must cooperate and share information about the ongoing local projects of
the LDS, including data sharing of IT systems as specified in section 4.1 of the
Partnership Agreement.
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3.1.1.6. Preparatory support
Urban areas. Since CLLD-based actions have not been undertaken in urban areas so
far, there are no relevant LAGs and urban communities do not have traditions of joint actions,
the application of the CLLD instrument would be impossible without preparatory support.
Preparatory support in urban areas should be provided:
− at the initial stage – to raise awareness about opportunities for exploiting the CLLD
instrument in urban areas;
− within 12 months after establishing a LAG – to build capacities among LAG members
in drafting LDSs.
Rural areas. Drawing on the fact that institutional system of LAGs in rural areas is
already in place, preparatory support will be oriented towards the drafting of LDSs, including
capacity building, training, public relation actions, participation and cooperation within the
network.
Fisheries areas. Following Article 35.1(a) of the Common Provisions Regulation, the
EMFF will also support preparatory support, including capacity building and training in order to
draft and implement the CLLD strategy. Support will be provided to training actions of local
stakeholders; exploratory studies on a certain area; costs related to the drafting of the CLLD
strategy, including consulting costs and costs for actions which are related to consulting with
stakeholders for the purpose of the strategy; administrative costs of organisations applying for
preparatory support during the preparation period (operating costs and human resources costs).
3.1.2. Integrated territorial investments (ITIs)
Financing will be available to up to 15 integrated territorial development programmes
oriented to territorial specificities and implemented as ITIs:
− programmes of 5 major cities: investments will be concentrated based on issues faced
by target territories with the population between 30,000 and 40,000; sustainable rural
development actions specified in Article 7 of the ERDF Regulation to tackle the
economic, environmental, climate, demographical and social challenges affecting urban
areas.
− 10 regional programmes aimed at target territories within a category of small and
medium-size cities (one or several cities per region).
Integrated territorial development programmes are financed by the ERDF, the ESF and
the Cohesion Fund. Additional resources will come from state and municipal budgets. It is also
expected to mobilise private investments through public-private partnership initiatives.
Target territories of the 5 major cities are identified in accordance with the principles
listed in Section 3.1.3.
In the category of municipal centres and cities with population from 6,000 to 100,000
(except for the 5 major cities):
In the cities (target territories) to be identified by the ITI coordinating body (the Ministry
of the Interior) based on quantitative criteria (consistent with the problems to be addressed) in
consultation with regional development councils. The key qualities (criteria) to be taken into
consideration when distinguishing target territories include:
− low economic activity;
− imbalanced economic structure (high dependence on raw materials or manufacturing)
and low economic diversity (which does not allow for sufficient employment in the city
or regional territory);
− significant depopulation due to migration or insufficient demographical change.
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Transition target territories (cities). They refer to regional centres of economic growth
(7 towns) and municipal centres of problemic territories (14 cities) identified in 2007-2013
programming period, where investments into urban infrastructure (in terms of their contents
similar to supported sustainable urban development actions) were made in 2007-2013. They will
be subject to limited transition measures under thematic objective 8 and actions under thematic
objectives 3, 4, 5, 6, 7 and 10 ensuring sustainability of the achieved results.
ITIs are also implemented in:
− the territories related with target territories (for activities beyond the target territory and
related to sustainable transport, green infrastructure solutions or ESF activities);
Integrated territorial development through ITIs (covering activities implemented
through CLLD) directly implement thematic objective 8 (all ITIs) and thematic objective 9
(compulsory part of programmes of the 5 major cities), also contribute to thematic objectives 3-7
and 10 (according to challenges typical for each territory).
Actions to be implemented as ITIs will address complex and multi-sectoral problems by
concentrating investments under the territorial principle (in target territories).
The requirement for territorial concentration may be omitted (when identifying related
territories) where projects stepping beyond the territory boundaries clearly contribute to the
implementation of objectives and targets set in the integrated territorial development programme
(for instance, through the development of a public transport system, the introduction of green
infrastructure solutions, the promotion of cooperation among territorial communities, etc., where
a clear contribution is made to the integration of the relevant part of the city or strengthening of
the communication between the urban and suburban areas).
In the implementation of ITIs:
− Municipalities responsible for a particular city are responsible for the initial selection of
actions (on the basis of detailed action plans for integrated territorial development programmes).
On the basis of programmes drawn by municipalities and approved by ITI coordinating body
intermediate bodies will make project pipelines. Municipalities of the 5 major cities are also
responsible for the identification of target territories in accordance with the principles set out in
Section 3.1.3.
− Regional development councils (consisting of municipal mayors, delegated members of
municipal councils and a representative appointed by the Government) ensure municipal
partnership in implementing joint actions, including coordination of projects covering more than
one municipality.
− The ITI coordinating body (the Ministry of the Interior) which, according to the Law of
the Republic of Lithuanian on Regional Development, is responsible for coordinating the
implementation of the regional policy, also selects target territories in the category of municipal
centres and cities with the population from 6,000 to 100,000 (except for the 5 major cities),
adopts integrated territorial development programmes and coordinates their implementation.
Table 11. Preliminary distribution of support to ITIs, except for the support provided for in Section 3.1.3 (total
amount)
Priority axes of the Operational
Programme for the EU Funds’
Investments in 2014-2020
Promoting competitiveness of
small- and medium-sized business
Promoting energy efficiency and
production and use of renewable
energy sources
Fund
Preliminary amount (EU support)
(EUR)
ERDF
25,000,000
ERDF,
Cohesion Fund
ERDF:
85,000,000
Cohesion Fund:
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Environmental protection,
sustainable use of natural resources
and adaptation to climate change
ERDF,
Cohesion Fund
Promoting the infrastructure of
sustainable transport and main
networks
ERDF,
Cohesion Fund
Promoting high-quality
employment and participation in
the labour market
ERDF
ERDF:
116,427,000*
ERDF:
30,000,000
ESF:
8,480,000**
ERDF:
35,000,000
ESF:
5,000,000
Promoting social inclusion and
ERDF
supporting the fight against poverty ESF
Promoting public awareness and
boosting the potential of human
resources
50,000,000
ERDF:
25,000,000
Cohesion Fund:
50,000,000
ERDF:
30,000,000
Cohesion Fund:
30,000,000
ERDF
ESF
489,907,000
Total
* For the implementation of ITIs in small and medium cities (cities with population 6,000–100,000 and smaller
municipal centres)
**For the implementation of CLLD ITIs in small and medium cities (cities with population 6,000–100,000 and
smaller municipal centres), as well as other ESF supported activities of thematic objective 9 in accordance with
integrated territorial development programmes (healthy ageing, improvement of public health, aid to marginal
groups).
3.1.3. Sustainable urban development, including the urban areas where integrated
sustainable urban development actions are to be implemented
Sustainable urban development actions are implemented as ITIs.
Integrated territorial development programmes are designed for defined parts of the 5
major cities where the population is between 30,000 and 40,000 and for the related territories
where sustainable urban development actions address regional development issues.
The responsibility for drafting these programmes (drafting an integrated territorial
development programme, designing guidelines for CLLD strategies, identifying specific projects
and/or groups of projects) is delegated to municipalities (cities). It means that cities are
responsible for the selection of projects.
Parts of the major cities (target and related territories) where integrated territorial
development programme will be implemented are determined by the municipality subject to the
approval of the ITI coordinating body. When identifying target territories, a priority will be
given to densely built and populated territories which are connected to the city centre by
functional links (potential new sub-centres) and face environmental and social challenges. The
criteria include:
− the potential for urban and economic development (distance from the city centre,
density of public transport routes, concentration of public service providers, area of territories
suitable for conversion, etc.);
− social and demographical challenges (ageing population, criminality, social pathologies,
large share of socially vulnerable population, socially isolated communities (the Roma) and other
territorially concentrated social issues);
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− environmental and climate change challenges (air and water pollution, contaminated
territories, traffic, energy efficiency in public infrastructure, etc.).
Table 12. Indicative allocation at national level to integrated actions for sustainable urban development under the
ERDF*
Fund
ERDF
(ESF)
The indicative allocation at national level to
integrated actions for sustainable urban
development (EUR)
204,700,000
6,001,000
210,701,000
Proportion of the total allocation to the
Fund (%)
5.85
0.53
4.55
* Preliminary allocation of funding for 2014–2020 under Priority 7 (investment priority – „Supporting employmentfriendly growth through the development of endogenous potential as part of a territorial strategy for specific areas,
including the conversion of declining industrial regions and enhancement of accessibility to and development of
specific natural and cultural resources“) and Priority 8 (investment priority – Implementing CLLD strategies) for the
target territories of 5 major cities (sustainable urban development actions) under the Operational Programme for the
European Union Structural Funds’ Investments.
3.1.4. Main priority areas for cooperation, under the ESI Funds, taking account, where
appropriate, of macro-regional strategies
Today, many of the challenges faced cross national borders. Properly addressing them
requires planning inter-state actions and cooperation in a constructive and coordinated manner.
The EUSBSR, the aim of which is to tackle common challenges faced by countries of the Baltic
Sea Region in a coordinated manner and to use the potential of the region more effectively to
improve the welfare of the region’s population, while contributing to better economic, social and
territorial cohesion within the EU, is a perfect platform for such coordinated interregional
cooperation.
Within the framework of the EUSBSR and its action plan, Lithuania coordinates the
implementation of the following priority areas, actions and flagship projects:
‘Transport – improving internal and external transport links’ (coordinated by the
Lithuanian Ministry of Transport and Communications together with the Swedish Ministry of
Enterprises, Energy and Communications) and ‘Crime – fighting cross-border crime’
(coordinated by the Lithuanian Ministry of the Interior together with the National Police Board
of Finland).
The Ministry of Agriculture coordinates the implementation of the action ‘Enhance the
combined effects of the rural development programmes’ of the priority area ‘Agri – reinforcing
sustainability of agriculture, forestry and fisheries’ (coordinated by the Finnish Ministry of
Agriculture and Forestry).
Lithuania is also the leader of 8 flagship projects in the implementation of priority areas
of the EUSBSR ‘Innovation’, ‘Energy’, ‘Crime’, ‘Education’, ‘Shipping’ and horizontal action
‘Sustainable development and bioeconomy’.
As indicated in the report from the European Commission on the implementation of the
EUSBSR (June 2011) and conclusions of the Council (November 2011, June 3012, October
2013), the linking of the strategy with the available sources of financing, especially the ESI
Funds, is of utmost importance for the successful implementation of the strategy. Considering
this fact and the need to ensure an integrated intersectoral approach, which also plays an
important part in implementing the EUSBSR, priorities of the ESI Funds and ETC programmes
for the 2014-2020 programming period have been formed with regard to objectives of the
EUSBSR and priorities provided for in its Action Plan. Other activities planned are as follows:
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− Setting a priority criterion for project selection at the level of the Operational
Programme for the EU Funds’ Investments in 2014-2020 measures to give a priority to projects
that contribute to the implementation of the EUSBSR. Based on that criterion, a project will be
treated as contributing to the EUSBSR provided that its subject is in line with the priority areas,
horizontal actions and/or flagship projects listed in the EUSBSR Action Plan and its
implementation involves an international partner. A project may also be found contributing to
the EUSBSR where it has a cumulative impact, which means that a project together with other
similar projects undertaken in other countries contributes to the implementation of priority areas,
horizontal actions and/or flagship projects listed in the EUSBSR Action Plan. To ensure that this
selection criterion functions properly, applicants will have to specify the project’s contribution to
the implementation of the EUSBSR and the expected impact with regard to the EUSBSR.
− Where needed and where Member States express a common interest, launching, where
applicable, joint calls for project applications contributing to the implementation of the
EUSBSR. Carrying out cooperation projects implemented under the ECT cross-border
cooperation and international cooperation in the Baltic Sea Region programme will support
initiatives of Lithuanian partners, which contribute to the implementation of the EUSBSR.
− Adapting the existing monitoring system of the EU financing instruments to the
EUSBSR to ensure consistent monitoring of the implementation of the EUSBSR supported by
the ESI Funds and ECT programmes and precise evaluation of the contribution of the ESI Funds
to the EUSBSR. Also, where relevant, indicators specified in the EUSBSR Action Plan and their
target values will be tailored to the national context and linked to indicators of the ESI Funds,
taking into consideration the indicators of Europe 2020.
− Regularly reporting in implementation reports of the Operational Programme for the EU
Funds’ Investments in 2014-2020, the RDP 2014-2020, the Fisheries Operational Programme
and ECT programmes the contribution of the ESI Funds to EUSBSR objectives.
Addressing of challenges identified in Section 1.1 more effectively requires, where
relevant, cooperation with other countries from the Baltic Sea Region. For this purpose, given
the implementation of EUSBSR objectives, the following areas of cooperation have been
foreseen for the 2014-2020 programming period: research and innovation; improving
competitiveness among SMEs; environmental protection; increasing energy efficiency;
combating climate change; transport; ICT; international exchanges in the areas of employment,
education and training. The cooperation in these areas will contribute to all three objectives of
the EUSBSR: ‘Save the Sea’ (environmental protection, combating climate change), ‘Connect
the Region’ (energy, transport), ‘Increase Prosperity’ (research and innovation, SMEs, education,
training and employment). As to the transport sector, cooperation with Poland, Estonia and
Latvia is planned for the purpose of building connections as part of the priority project ‘Rail
Baltica’ envisaged in the EUSBSR Action Plan in the priority area ‘Transport – improving
internal and external transport links’. It should be noted that, where needed and where a clear
value-added is evident, when implementing joint projects with other countries, a certain share of
funds could be spent outside the territory of the programmes as laid down in article 70.2 of
Common Provisions Regulation. Such a possibility is provided for in the Common Provisions
Regulation.
It should be mentioned that when jointly implementing the Operational Programme for
the EU Funds’ Investments in 2014-2020 funded by the ESF, the ERDF and the Cohesion Fund,
the contribution to the EUSBSR objective ‘Save the Sea’ will be made by measures aimed to
preserve biodiversity and landscape, improve the quality of bodies of water, minimise adverse
impacts of shipping on the environment, ensure the proper quality of drinking water,
landscaping, etc. Contribution to the second EUSBSR objective ‘Connect the Region’ will be
made by the measures focused on modernising the transport infrastructure, developing internal
and external transport networks, minimising the negative impact of transport on the environment,
improving the efficiency of the transport system, promoting energy efficiency and the use of
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RES, etc. Contribution to the third EUSBSR objective ‘Increase Prosperity’ will be made by the
measures targeted at promoting SME entrepreneurship, cooperation between business and
scientific sectors, upgrading R&D infrastructure, increasing innovation capacities among
enterprises, promoting internationalisation and academic mobility of studies, combating climate
change-induced changes, raising employment, etc.
As part of the implementation of the 2014-2020 rural development policy and the
drafting of the new RDP funded by the EAFRD, efforts will be made to ensure maximum
synergy between the objectives and measures of the RDP with the objectives of the EUSBSR.
Drafting proposals on how to link national rural development programmes with the objectives of
the EUSBSR is also facilitated by the action ‘Enhance the combined effects of the rural
development programmes’ (Coordinated by the Ministry of Agriculture) of the priority area
‘Agri – reinforcing sustainability of agriculture, forestry and fisheries’. EUSBSR objective 1
‘Save the Sea’ and objective 3 ‘Increase Prosperity’ will also be directly supported by
environment-related rural development measures of the RDP 2014-2020 aiming at reducing
pollution, improving the quality of water, protecting biodiversity, promoting green farming, as
well as by measures promoting the spread of the environment-oriented farming practice.
EUSBSR objective 3 ‘Increase Prosperity’ will receive a contribution from the RDP measures
aimed at the promotion of entrepreneurship and innovation; knowledge transfer and innovation;
increased resource efficiency (recycling of production waste for re-using, etc.); investments into
research and innovation. EUSBSR objective 3 will also be pursued through promoting all forms
of cooperation, in particular supporting cooperation between the currently functioning national
rural networks of the region, encouraging relations between regional communities and local
action groups as well as initiating and supporting other network-based cooperation structures at
national and regional levels. In the 2007-2013 programming period was observed that a
LEADER-type measure aimed at the promotion of territorial and international cooperation
within the region and beyond was significantly contributing to the implementation of the
EUSBSR objectives since cooperation was usually developed between partners of LAGs in the
region. In the 2014-2020 programming period, this measure will further contribute to the
implementation of the EUSBSR objective ‘Increase Prosperity’.
The EMFF will contribute to the implementation of EUSBSR objective 1 ‘Save the Sea’
through promoting the collection of waste from sea by fishermen (removal of the lost fishing
gear and waste discharged into the sea); supporting efforts to better manage or protect the
maritime biologic resources; drafting, developing and monitoring technical and administrative
measures, arranging for and implementing protection measures foreseen in the CFP Regulation
(multi-annual protection plans, etc.); improving and adapting new technologies or organisational
knowledge (including improved fishing methods and selectivity of fishing gear); reducing
environmental impacts of fisheries and ensuring more sustainable use of maritime resources;
ensuring adequate and sustainable fisheries management. The implementation of EUSBSR
objective 3 ‘Increase Prosperity’ and priority area ‘Innovation – exploiting the full potential of
the region in research and innovation’ may produce synergies with the EMFF measures
providing for investments into projects aimed at developing and adapting innovation in fisheries
and aquaculture sub-sectors, developing new or significantly improved fisheries and aquaculture
products, adapting new technologies as well as developing and introducing new or improved
processes, methods, management and organisation systems. To ensure synergy and
complementarity between Europe 2020, the EUSBSR, the EMFF and other ESI Funds, the
Fisheries Operational Programme foresees synergies between specific objectives and identified
measures of the EUSBSR and the Operational Programme.
Lithuanian border regions participate in cross-border cooperation programmes with
Latvian and Polish border regions, also in the South Baltic Cross-border Co-operation
Programme together with German, Danish, Polish and Swedish regions and municipalities along
the Baltic Sea. The main thematic objectives of ECT programmes at the Lithuanian border are as
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follows: thematic objective 6 ‘Protecting the environment and promoting resource efficiency’,
thematic objective 8 ‘Promoting employment and supporting labour mobility’, thematic
objective 9 ‘Promoting social inclusion and combating poverty’, thematic objective 11
‘Enhancing institutional capacity and ensuring an efficient public administration’ (paying closer
attention to general capacity of the provision of public services). In addition to other objectives,
the South Baltic Programme has important objective 3 ‘Enhancing the competitiveness of SMEs,
the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF)’.
Three key thematic objectives (1, 6 and 7) of the ECT international cooperation in the
Baltic Sea programme, in which Lithuania will take part with another 10 countries from the
Baltic Sea Region, will contribute to the achievement of EUSBSR objectives, support joint
cooperation programmes with the aim to address challenges faced by countries from the Baltic
Sea Region (putting an emphasis on flagship projects).
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4. ARRANGEMENTS TO ENSURE EFFICIENT IMPLEMENTATION OF
THE PARTNERSHIP AGREEMENT
4.1. Assessment of the existing systems for electronic exchange and possibilities to
share all information by electronic exchange only
In the 2007-2013 programming period, the use of information systems enabled a
significant qualitative shift which resulted in reduced administrative burden for project
beneficiaries and improved efficiency of bodies responsible for administration of EU support. In
the 2007-2013 programming period, the reduction of administrative burden was mainly related to
the introduction of electronic forms and electronic data exchange with applicants, project
beneficiaries and bodies responsible for administration of EU support.
One of the most significant improvements in information systems for the EU Structural
and Cohesion Funds administration is the development of a DEW for project beneficiaries. The
DEW is the main tool to provide e-services to project beneficiaries.
 The DEW is used for electronic data exchanges between project beneficiaries and
implementing bodies (the DEW is used for completing and submitting payment requests, postimplementation project reports, in case of ESF-funded projects – reports on project participants.
The DEW generates partially filled-in electronic forms in relation to project administration);
 The DEW also includes project monitoring and management functions relevant to
project beneficiaries (it provides information about project contracts, spending of the budget,
payments made for the project, etc.);
 The DEW can provide information on the actions performed by bodies responsible for
administration (status of verification of a payment request, etc.);
 The DEW is used for sending notices to project beneficiaries.
In the 2007-2013 programming period, the DEW was not meant to be used by the
applicants. However, applicants used electronic application forms with partially filled-in
information and installed automated checking of the input data which facilitated the filling-in of
applications.
In the 2014-2020 programming period, applications for support from the ERDF, the
ESF and/or the Cohesion Fund will be submitted electronically via the DEW. Those who
registered on the DEW will receive information and advisory service before submitting their
applications in an electronic format, and the period for providing information will be shorter.
The DEW will ensure that all applicants quickly receive information on the progress of the
evaluation of applications, the adjustments to be made and the decisions made. Once a document
is submitted through the DEW, it will not have to be re-submitted together with the application.
Links with other public data registries are expected to be developed to ensure that the applicants
are not requested to provide information which bodies responsible for administration can obtain
or verify themselves. The DEW will store explanations sent to applicants in an electronic format,
which will ensure the traceability of information in case of a dispute. The DEW is expected to
allow informing project beneficiaries on the results of the checks carried out, violations
identified or requirements to return the support or any part of it. It is also envisaged that project
beneficiaries will be informed immediately about any legal changes that can affect the
implementation of their projects.
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In case of the EAFRD paying agency, the information system to be used is designed for
the provision of e-services by bodies and agencies falling within the regulatory area of the
Ministry of Agriculture. It will be analogous to the DEW. The ŽŪMIS will allow for a two-way
communication between applicants and the EAFRD paying agency: receiving messages, sending
inquiries, submitting explanations, adding additional documents, etc. It is expected that after the
expansion of functionalities, the ŽŪMIS will also be used for EMFF-funded measures.
In the 2007-2013 programming period, the SFMIS was one of the main tools for
administration of the Structural and Cohesion Funds and was used by bodies responsible for
administration at all support administration stages. The SFMIS helps bodies responsible for
administration to properly manage and control the EU Structural and Cohesion Funds and to
avoid time consuming paper-based data administration processes. The SFMIS helps ensure that
all data necessary for the financial management, monitoring, supervision, audit and evaluation of
the EU Structural and Cohesion Funds are collected and stored in one system. The SFMIS was
widely used for administering the operational programmes 2007-2013 (registration of
applications; administration of contracts; monitoring of project implementation; registration of
the findings from checks; costs eligibility control; payments, etc.) and for monitoring the
implementation (providing information on the progress of project implementation and spending
of the funds earmarked for the operational programmes 2007-2013, a wide range of reports;
collection of data on monitoring indicators; monitoring the implementation of financial plans).
Despite a significant progress made in developing the information system in the 20072013 programming period, currently all data provided in an electronic format are also provided
in printed documents because the system does not have a safe electronic signature, tools for data
exchange with other national databases and registries are poorly developed, the DEW is not used
for information exchange with applicants, not all information on a project is provided in an
electronic format. The development and adapting of the information system for the 2014-2020
programming period will focus on the elimination of these shortfalls.
Further developments and improvements of the information systems in the 2014-2020
programming period will be based on the current system, capitalising on best practices of the
2007-2013 programming period and further expanding the lacking functionalities.
The main areas for the development of the SFMIS and the DEW:
− Adapting the DEW to both project beneficiaries and applicants;
− Guaranteeing electronic data exchange, eliminating printed information and using predefined standardised forms more widely;
− Using electronic signature for electronic data and documents exchange between
authorities administering EU support on the one hand and between project beneficiaries and
applicants on the other;
− Ensuring greater interoperability – wider integration of the SFMIS with databases of
other public authorities and automated data verifications with other (external) information
systems without asking applicants and project beneficiaries to provide information which is held
in other public databases and registries;
− Ensuring that equivalent information is submitted only once – within the established
framework, the SFMIS will enable bodies responsible for administration of EU support to
exchange information about applicants and project beneficiaries and not request to re-submit
equivalent information for several times;
− Ensuring electronic communication between implementing bodies, applicants/project
beneficiaries;
− Developing a system for electronic documents and data storage, ensuring access to
documents and data on project beneficiaries and their projects, enabling to assess the eligibility
of costs and carry out audits using data and documents accessible through the SFMIS only;
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− Ensuring the widest possible standardisation and electronisation of different
administration processes and maximising efficient use of the SFMIS in the work of bodies
responsible for administration of the EU Structural Funds.
In 2014, basic modules of the new system will be developed covering the submission
and evaluation of applications, contracting, payments and the declaration of expenditure to the
European Commission. Taking into consideration that the introduction of e-signature and edocuments storage functionalities would require significant changes in DEW and SFMIS, the
possibility for the applicants and project promoters to submit all information about projects in
electronic format will be secured through further development of the existing functionalities, in
particular in DEW, in 2015.
Table 13. Indicative schedule for the adaptation of the information system to the 2014-2020 programming period
Finalisation of the
process on SFMIS2014
Year, quarter
Key 2014–2020 EU Structural and Cohesion Funds administration processes
Planning of measures and calls
Quarter III, 2014
Submission and registration of applications
Quarter III, 2014
Assessment of applications
Quarter III, 2014
Conclusion, amendments and termination of contracts
Quarter IV, 2014
Payments
Quarter IV, 2014
Declaration to EC
Quarter IV, 2014
Adapting SFMIS2014 for exchange of electronic documents and data, and further development
Adapting of DMS for submission of electronic documents and data,
Quarter I–II, 2015
development of a storage for electronic documents
Administration of recoveries
Quarter I–II, 2015
Administration of audits, on-site checks
Quarter III–IV, 2015
Monitoring of financing plans, processes
Quarter III–IV, 2015
Process
The SMFIS is not and will not be used for the EAFRD and the EMFF in the 2014-2020
programming period. In the 2014-2020 programming period, an information system for the
administration of support to the Lithuanian agriculture and fisheries sector will be developed on
the basis of the database of a KPPAIS module. It will ensure that all data related to the
administration of support to rural development and the fisheries sector are collected and
processed, and all information is available. It will also accelerate the administration of support to
rural development and the fisheries sector, ensure the security of data, enable to rapidly generate
and prepare reports to be submitted to relevant EU and Lithuanian institutions, etc. However,
there is a need for integration with the SFMIS for data exchange (it is important for double
financing) and therefore a feasibility study will be conducted.
The information system for the administration of the Lithuanian RDP and the Fisheries
Operational Programmes is hosted on the NPA website at http://www.nma.lt/. NPA website
users may review information on their applications submitted under measures of the RDP and
the Fisheries Operational Programme (status of applications, checklists, inconsistencies
identified in the applications for support on declared holdings, information on on-site checks),
financial information and correspondence with the NPA as well as to revise the contact and bank
details, submit certain applications and other documents in an electronic format.
The most important development of e-services in the short run is related to the
possibility to submit applications and other documents in an electronic format. For this purpose,
the functionality of the information website is being further expanded and a project ‘Transferring
services of bodies and agencies within the regulatory scope of the Ministry of Agriculture into
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the electronic media’ has been launched. The implementation of this project will cut
administrative burden for agricultural and fisheries entities pursuing services rendered by bodies
and agencies within the regulatory scope of the Ministry of Agriculture. Once this project is
implemented, the NPA will be able to use electronic media to receive applications under
measures of the RDP and the Fisheries Operational Programme; applications for national
support; payment requests with regard to support to rural development and the fisheries sector
and project implementation reports; develop two-way communication between the NPA and
applicants/beneficiaries by electronic means.
It is intended to allow for data exchange between the SFMIS and the KPPAIS for
prevention of double financing when assessing the eligibility of the applications submitted and
paying costs incurred by project beneficiaries. Also, it is planned to further improve the interface
between the SFMIS and the KPPAIS to accelerate data exchange between these information
systems and their integration, and make it as effective as possible.
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