Objective 1 Programme for Melilla


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The European Commission will actively participate in the development of the autonomous town on Melilla by co-financing an integrated operational programme during the 2000-2006 period. This programme falls within the Community support framework defining the development strategy for the Spanish regions eligible for assistance under Objective 1. The total cost of the programme is EUR 83.898 million, of which EUR 58.4 million will be provided by the EU Structural Funds.

1. Action Priorities

The programme revolves around six priority areas and technical assistance measures. 
Priority 1: Improvement of competitiveness and employment, and development of production structures
In order to attain this objective, the Town of Melilla will grant financial aid to industrial, commercial and service businesses which are capable of creating permanent jobs by extending their activities, by creating new businesses or by self-employment. Such aid may take the form of grants in capital or aid towards the payment of interest.

Priority 2: The knowledge society (innovation, R&D, the information society)
This priority is intended to facilitate the access of SMEs, the authorities and the citizens of Melilla to telecommunications networks in order to render the territory more competitive both nationally and internationally. Two more specific objectives are also aimed at: giving the town a modern tool for promoting tourism and diffusing a positive image of the �extrapeninsularity� of Melilla.

Priority 3: Environment, natural habitats and water resources
This sub-programme is divided into three major sections:
Water: water supply must be improved (in quantity and in quality) by replacing and extending the water supply network; leaks in the waste water drainage networks must be repaired in order to avoid the subsoil being contaminated, and excessive exploitation of the water table must be stopped;
Waste: urban waste, including dumping, will receive an integrated treatment; an alternative system will be set up to take over when the incinerator is stopped according to programme;
Bio-diversity: the beaches and natural reserves must be regenerated and protected.

Priority 4A: Educational infrastructures and strengthening of technical and vocational teaching
Teaching and Training Centres will be built and equipped. Their functioning will be optimised by setting up individualised insertion programmes. These will start as soon as the pupils register in order to help them to choose the training appropriate for them which best corresponds to the demand on the labour market. They will continue throughout the training programme to help the pupil define his own vocational project (which may be self-employment) and will continue for six months after the end of the training in order to help the trainees to enter the market. The first Vocational Orientation Cabinet in Melilla was opened in December 1997; during the period 2000-2006 it intends extending its services in order to cover the whole of the town.

Priority 4B: Vocational insertion and re-insertion of the unemployed
For the adult unemployed (57% of the total number of unemployed people): vocational orientation measures, and training and accompaniment programmes.
For the long-term unemployed (38.2% of the total number): vocational orientation measures, combined training and employment programmes, employment plans, etc.
For the unemployed under 26 years: orientation & vocational training, formation, combined training and employment programmes, information and accompaniment measures.
For groups isolated from the labour market, particularly women: the conception of individualised insertion programmes.

Priority 4C: Stabilisation of jobs and adaptability
Continuous training programmes in favour of workers and employers, concentrated on the new requirements of the labour market in terms of the information society and qualitative improvement. Training needs will also be anticipated.

Priority 4D: Integration on to the labour market of people with specific difficulties
Specific programmes will be conducted in favour of a series of particular groups:
returned émigrés trying to re-enter the labour market;
handicapped people (specific training programmes);
immigrant communities;
other programmes will target unqualified labour, generally concerning illiterate or semiliterate people who need to supplement their basic schooling if they aspire to vocational training.

Priority 4E: Participation of women on the labour market
This priority is based on training. Environmental awareness modules will be incorporated into the programmes, which will encourage women�s spirit of enterprise, their access to literacy, and the combat against their segregation. 
Priority 5: Local and urban development
These measures concern the extension and the renovation of the water purification network and the creation of leisure infrastructures. They will also favour the creation of tourist and cultural infrastructures, while taking care to respect the balance of the ecosystems. In this context, provision has been made to transfer the shops in the Rastro area, to rehabilitate an area of 200,000 sq. m. in the area of Los Cortados, as well as to build anti-flooding infrastructures in the outlying quarters and the area of Plaza d�España. 
Priority 6: Transport and energy networks
For this priority, provision has been made to build alternative roads, to enlarge the commercial port of Melilla and to enlarge and modernise the airport of the autonomous town. 

Technical Assistance: Measures will equally be provided to assist with the management of, information on, implementation of, control and evaluation of all aspects of the programme.

2. Description of the eligible areas

(Data available on adoption of the programme)
Melilla is an enclave in Morocco, with around 60,000 inhabitants on a territory of only just 12.3 sq. km. Not only is the autonomous town extremely densely populated; this population is also of mixed cultures: nearly 35% is of Moslem origin, and its population growth rate is well above the Spanish average (+ 1.6% between 1995 and 1998, compared with 0.58% for Spain).

Population growth and the large number of young people certainly exert pressure on the production system, which cannot keep up with the number of people coming on to the labour market. Although the unemployment rate[1] of Melilla reduced remarkably between 1996 and 1998 (- 27%), it remains higher than the Spanish average (21.5% as opposed to 20.5%), especially for women (38.4% as opposed to the national average of 26%).

Macro-economically speaking, the fact that there is no primary sector and that industry is so weak (7.69 of the GDP), together with the small proportion taken up by construction (5.31%), means the lion�s share goes to the service sector which represents 88% of the added value of the economy of Melilla.

On account of its geographical isolation and the atypical character of its sectorial structure, the autonomous town does not develop at the same pace as the Spanish economy. Over the last few years, the economic growth of Melilla has been less than that of the rest of Spain. Thus in 1998 the GDP of this town-region was only 70.7% of the Spanish GDP (as opposed to 73.5% in 1995). However, the economy of Melilla seems to suffer less than the continental economy during periods when the economy is slowing down. It is no exaggeration to speak of the effect of insularity.

As concerns the environment, the autonomous town must face several types of problems: losses in the water distribution network, erosion and pollution of the soil, the disappearance of forests, the absence of control as regards atmospheric pollution, the deterioration of the coastal areas, etc.

[1]  According to the method applied by the Studies on Active Population, as opposed to those used by the INEM (National Institute for Employment).

3. Management and contact details

The Managing Authority for this programme is the Directorate General of Community Funds and Territorial Financing (DGFCFT) of the Secretariat of State for the Budget and Expenditure of the Ministry of Finance, sharing responsibility with the Authorities of the Autonomous Town of Melilla. The Managing Authority will co-ordinate all the actors involved in implementing the programme and will organise the meetings of the Implementation Committee.

The Implementation Committee is composed of the following members:
representatives of the Ministries of Finance, Employment and Social Affairs;
representatives of the Town of Melilla, of the regional authority competent for the environment, of the regional body competent for equal opportunities, and
a representation from the European Commission.
It is co-chaired by a representative of the Managing Authority and by a representative of the Department co-ordinating the managing of the Structural Funds within the Town Authorities

Financial and Technical information

Objective 1 Programme for Melilla

Intervention Type

Operational Program

CCI no


Number of decision


Final approval date


Breakdown of finances by priority axis

Priority Axis EU Investment National Public Contribution Total Public Contribution
1 Improving competitiveness and developing the productive fabric 0 0 5 682 542
2 The knowledge society (innovation, R&D, the information society) 0 0 517 426
3 Environment, natural habitats and water resources 0 0 16 540 959
41 Education infrastructure and reinforcement of professional, technical education and training 0 0 5 507 343
42 Insertion and professional reinsertion of unemployed people 0 0 7 352 077
43 Reinforcement of stability in employment and adaptability 0 0 841 420
44 Insertion of people with particular difficulties in the labour market 0 0 3 167 650
45 Participation of women in the labour market 0 0 1 760 946
5 Local and urban development 0 0 19 404 497
6 Transport and energy networks 0 0 26 406 191
9 Technical Assistance 0 0 1 030 837
Total 0 0 88 211 888

Financial Breakdown by Funds

EU Investment ERDF ESF
Total: 60 974 287 50 324 668 10 649 619
100,00% 82,53% 17,47%