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Hungary

Operational Programme 'South Transdanubia'

Programme under the Convergence Objective, co-funded by the European Regional Development Fund (ERDF)

On 1 August 2007, the European Commission approved an Operational Programme for South Transdanubia in Hungary for the period 2007-13. The Programme involves Community support under the Convergence Objective. The total budget of the Programme is approximately €829 million and includes Community investment through the European Regional Development Fund (ERDF) of some €705 million (approximately 2.8% of the total EU money invested in Hungary under the Cohesion Policy for 2007-13).

1. Aim and purpose of the programme

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The region of South Transdanubia has Gross Domestic Product (GDP) per capita of 42.9% of the EU average and an employment rate of 52.3% (2004). To address these disparities, the Programme will take a sustainable development approach and tap into the region’s potential in terms of natural assets and culture. The overall objective is to close what is currently a significant gap between the national and regional GDP growth rates. The three specific aims identified are to:

  • develop a model region of high environmental quality;
  • establish a competitive economy built on local characteristics;
  • halt the increasing intra-regional social disparities.
  • In line with the National Strategic Reference Framework, the Programme will also contribute to achieving the objectives set out in the Growth and Jobs agenda.

2. Expected impact of investments

The expected impacts of the investments include maintaining the average regional GDP at 71% of the national average, generating gross added-value growth among enterprises of HUF 24 billion annually (approximately €90 million), providing 259 000 more patients with high standard outpatient care per year (in clinics targeted by the Programme), and providing an additional 55 000 people per year with a sewage treatment system in line with EU criteria.

3. Priorities

The Programme is structured according to the following priorities:

Priority 1: Competitive Economy based on the Development of Urban Areas [approximately 10.5% of total funding]

This priority aims to increase the employment rate by developing small and medium-sized enterprises (SMEs) and business infrastructure. The main activities include providing support for clusters and networks, reinforcing SME support services, developing industrial parks and incubation centres and rehabilitating brown-field areas.

Priority 2: Strengthening the Region's Tourism Potential [approximately 18.6% of total funding]

The objectives under this priority are to increase the competitiveness of the region's tourism sector, increase the number of tourists visiting the region and encourage tourists to stay for longer periods of time. The priority targets support at integrating regional tourism attractions and quality tourism services, and developing a regional tourism destination management organisation. The tourism development will focus on six areas that the region is renowned for, with different tourist products developed based on local features and traditions.

Priority 3: Development of Human Public Services [approximately 18.5% of total funding]

The main aim under this priority is to increase access to human public services, particularly in areas lagging behind. Kindergartens, primary and secondary schools, and basic social services will benefit from specific support. In the health sector, support will target outpatient care centres, diagnostics, screening and rehabilitation centres. Improved access to public buildings will also benefit under this priority.

Priority 4: Integrated Urban Development [approximately 22.8% of total funding]

This priority aims to strengthen the region’s urban network and promote the sustainable upgrading of deprived urban areas in terms of social structures and the environment. The main activities include social-type rehabilitation and the development of settlements through integrated urban development actions. Support will also target the project ‘Pécs - European Capital of Culture 2010’.

Priority 5: Improving Accessibility and Environmental Development [approximately 26% of total funding]

This priority aims to improve the accessibility of micro-regional centres, slow down the shift from public to private means of transport, improve environmental safety and increase environmental awareness. Activities designed to achieve these aims include developing regional roads, bicycle routes and public transport, developing wastewater management infrastructure, re-cultivating landfills and raising awareness about the environment.

Priority 6: Technical Assistance [approximately 3.6% of total funding]

Technical assistance will be provided for implementing the Programme, with financial support also available for administration, monitoring and control purposes.

4. Managing Authority

National Development Agency’s Directorate General Managing Authority for Regional Operational Programmes
Wesselenyi u. 20-22
HU-1077 Budapest
Gábor, Oláh
Tel.: +36 1 474 9643
Fax.: +36 1 474 9611
E-mail.: gabor.olah@nfu.gov.hu

Financial and Technical information

Title : Operational Programme 'South Transdanubia'

Intervention Type : Operational Programme

CCI no : 2007HU161PO011

Number of decision : C/2007/3788

Final approval date : 2007-08-01

Breakdown of finances by priority axis
Priority Axis EU Investment National Public Contribution Total Public Contribution
Competitive Economy based on the Development of Urban Areas 74 219 181 13 097 503 87 316 684
Strengthening the Region's Tourism Potential 130 895 586 23 099 221 153 994 807
Development of Human Public Services 130 227 765 22 981 370 153 209 135
Integrated Urban Development 160 844 693 28 384 358 189 229 051
Improving Accessibility and Environmental Development 183 562 474 32 393 378 215 955 852
Technical Assistance 25 387 289 4 480 110 29 867 399
Total 705 136 988 124 435 940 829 572 928
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