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FINANCING AGREEMENTSPECIAL CONDITIONS
The EuroDean Commission, hereinafter referred to as "the Commission"' acting on behalf of the
Eu, opean Union. hereinalier referred to as "the Union"'
ofthe one Part. and
Kosovo+, hereinafter referred to as "IPA II bereliciary", repreSented by the office of the Prime
IUinister,
of the other part,
have agreed as follows:
Article I - The Programme
(l) The Union agrees to finance and the IPA II beneficiary agrees to accept the financing of the
following Programme:
Annual Action Programme for Kosovo for the year 2019 - Part ll Objective I
Global commitment number (CRIS): 20191041-247
Action I "EU Acquis Approximation and Young Cell Scheme"
ThisProgrammeisfinancedfromtheUnionBudgetunderthefollowingbasicact:lnstrument for Pre-Accession Assistance' IPA llt-
(2) The total estimated cost of this Programme is EUR 7 000 000 and the maximum Union
conribution to this Programme is set at EUR 6 000 000'
This Programme requires financial contributions from both the IPA ll beneficiary and
the Union. The breakdown ofthe respective financial contributions is set out in Annex l.
(3) The Programme shall be implemented in accordance with the descriPtion provided in Annex I,
which is further detailed in Action documents to be agreed on by exchange of letters between the
Commission and the IPA Il beneficiary.
" This designation is wirhour prejudice to positions on status, and is in line with UNSCR 12,1411999 and the ICJ
qDinion on the Kosovo declaration ofindependence.I Regularion (EU) No 231,/2014 ofrhe European Parliament and ofthe Council of I I March 2014 establishing an
I nsrrument for Pre-accession Assistance (l PA I D, OJ L 77, 15.03.2014' p. I I -
k\. /br?ol
l
Article 2 - Execution period and operational implementation period
( I ) The execution period of this Financing Agreemert as detined in 'Article l2 of Annex Il (General
Conditions) is fixe,J at l2 years, fiom the entry into force ofthis Financing Agreement'
(2) The duration of the operatio"J' l*pt"'"ntution period as defined in Anicle 12 of Annex Il
'-' 1C.n.rul Conditions) is fixed at 6 years' from the entry into force ofthis Financing Agreement'
Article 3 - Addresses rnd Commun;cation
Ali communication conceming the implementation of this Financing Agreement shall be in writing,
shall refer expresslY to this Programme as identified in Article l(l) and shall be sent to the following
addresses:
( l) for the Commission
Direcrorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR)
Directorate D
Rue de la Loi 15
European Commission
B-1049 Brussels. Belgiurn
NEAR-D] iDec ,elrropa-eu
(2) for the IPA tr treneficiarY
Office of the Prime MinisterGovernment BuildingFloor 3. Office 802
Mother Theresa Street l410000 Prishtina. Kosovo
rks-gov.net
Office of the Prime MinisterGovemment Building- Floor 8- Office 802
Mother Theresa Street 14. 10000 Prishtina' Kosovo
Article 4 - OLAF contact Point
The contact poinr oi rhe IpA II beneficiary having the appropriae powers to cooperate directly rvith
the European Anti Fraud Office (OLAF) in order to facilitate OLAF s oPerational activities shall be:
Article 5 - Framework Agreement
TheProgrammeshallbeimplementedinaccordancewiththeprovisionsoftheFrameworliAgreementbetween the European Commission and Kosovo on the arrangements for imPlementation of Union
financial assistance to Kosovo under rhe Instrument for Pre-Accession Assistance (lPA Il) rvhich
enteredintoforceon16April2015(hereafterreferredtoas.treFrameworkAgreement,').ThisFinancing Agreem€nt supplements the provisions of the Framework Agreement' In case of conflict
between'ontheonehand,theprovisionsofthisFinancingAgreementand.ontheotherhand'theprovisions ofrhe Framework .Agreemenr- rhe latter shall take Precedence'
2
+\ ,/lr4il,l
,Arlicle 6 - Annexes
(l ) This Financing Agreement is composed of:
(a) these SPecial Conditions;
(b) Annex I: Annual Action Programme, detailing the objecrives' erpected resuls' activities'
description ofthe budget-implementation tasks entrusted and budget of this Programme;
(c) Annex Il: General Conditions;
(d) Annex III: Model Annual Report on the implernentation of IPA ll assistance as per Articlds)
58 and 59(l) ofthe Framework Agreement:
(2) In the event of a conflict between, on the one hand' the provisions of the Annexes and on the
other hand, the provisions of rhese Spccial Conditions- the laner shall take precedence ln the
eventofaconflictbetw,eentheprovisionsofAnnexlontheonehandan4theprovisionsofAnnex Il, on rhe other hand' the latter shall take precedence-
Article 7 - Entr-v into force
ThisFinancingAgreementshallenterintoforceonthedateon*,hichtheCommissionreceivesanotificaionfromthelPAllbeneficial,confirmingthecompletionoftreintemalproceduresoftheIPA ll beneficiary necessary for is entry into force' The Commission shall inform the IPA II
beneficiary ofthe date ofthe receipt ofthis notification This Financing Agreement shall not enter into
force if such a notification is not received by the Commission by 3l December year 2021 '
This Financing Agreement is drawn up in duplicate in the Engtish language' one being handed to the
Commission and one to the IPA II beneficiary'
For the IPA II beneficiary: For the Commission:
,s4tY4^r'l>-t
Ms Genoveva Ruiz Calavera
Director for Westem Balkans
DG N eighbourhood and Enlargement
NegotiationsEuropean Commission
Office of the Prime lvlinister10000 Pristina, Kosovo
Pristina. on Brussels, on
)
A\-NEX I
Annual Action Program-me for Kosovo* for the year 2019 - Part lI
Annual Work ProgrammeThis document constitutes the annual *'ork programme in the sense of Article 110(2) of
Regu tation (EU, Euratom) 2018/1046
1 IDENTIFICATION
Basic act:
CRIS/ABAC Commitmentreferences and budgetIine(s):
Instrurnent for Pre-accession Assi$ance (IPAJI)
2019 / M\ 247 IEUP.6 000 000 - 22.02.01.01
2019 / Ml 248 / EIIR 42 360 000 - 22.02.01 .02
Benefic Kosovo
Total cost:
EU Contribution:
Direct management by the Ewopean Commission and
hdirect management with United Nations Development
Programme (JNTDP), and with Intemational Organization(ro - Action 4 EU4 social tectionfor
Method of implemeDtation
31 Decernber 2020
Final date for concludingFinancinq Agreement(s)with the IPA II beneficiarY
Final date for contractirg,including the conclusion ofcontribution/d elegation
3 years following the date of conclusion of the Financing
Agreement
ments
6 years following the date of conclusion ofthe FinancingIndicative operationaltation
Final date forimplementing theFinancing Agreement
(date by which thisprogramme should be de-
l2 years following the conclusion of the Financing
Agre€tnent-
committed and closed
AH
'This desigaation is without prejudice to positiols or slatus
Opiaiou on the Kosovo declaration of independeoce'aad is in line with LIISCR I 2441 1 999 and the ICJ
{
EUR 49 360 000
EUR 48 360 000
I
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2 DESCRIPTTON OT THE ACTIO\ PROGRA]UME
Z.I SECTORS SELECTED U\-DER TEIS ACTION PROGRA\IME
. Rationale for the selection of the specifrc sectors und* this progtamme:
Following the covlD-l9 outbreak, a major reprogramming and reorientation exercise of IPA
funds was initiated, with the twofold objective of helping Kosovo acquiring emergency
health supplies and equipment as soon as possiblg arld addressing the social and economic
fallout of the crisis on the short and medium term. This reprogramming exercise is in linewith the "Communication on the global EU response to COVID 19 - JOIN (2020) 11 final",adopted on 8 April 2020 and the communication on Support to the westem Balkans intackling coVID-l9 and the post-pandemic recovery - commission contribution ahead of the
EU-Western Balkans leaders meeting on 6 May 2020 adopted on 29 Apil 2O2O -COM(2020) 3i5 fina1.
Under the Action Programme for Kosovo for the Year 2019 part II, the COVID-l9 response
(EUR 38.36 million) includes additional urgetrt sup,port through action 03 - EU4 Resilience
and action 04 - EU4 Social protection following the covlD-lg crisis. The following sectors
will be supported: Democracy and Governance (EU Approximation), Competitiveness,
Innovation and Agriculture and Rural Development and EducatiorL Employment and Social
policies. The identified sectors are in line with the indicative strategy paper for Kosovo for2014 - 2020 on20 August 2014, revised on i0 August 20181-
- The main aim 6f *1g action rulder democrzcy and governance is to further support
Kosovo's with approximation with the EU acqzis through strengthening technical and
administrative capacity of the administation in relation to Kosovo's European Reform
Agenda in implementing measures related to urgent political priorities in the
frameu'ork of Kosovo's Ewopean perspective, including those that may arise from &eEU facilitated dialogue for the normalisation of relations between Belgrade and
Pristina- In addition, the action aims at supporting the public administration toimprove the professional capacity of the civil service, to better serve Kosovo citizens,
through ensuring continuation of the Yomg Cell Scheme.
- The overall objective of the first action under Competitiveness' Innovation and
Agriculture and Rural Development is to increase the efficiancy and productivity ofthe private sector through iucreased use of Information and CornmunicationTechnologies (ICT), create proper and safer e-businesVe-cornmerce ecosystem, and
improve electronic servic€ delivery for citizens and businesses. This action willcontibute to Kosovo govemment efforts to digitalise and increase competitiveness
and profitability of Kosovo businesses to Promote products or services on *'ebsites,
and accept online payments and instant orders- By providing a proper Electronic
Identification (eID) system and a good environnent for e-business/e-corlmerrc,
interoperabiiity between Kosovo and Mernber States would be more productive and
more efficient- The second action under this sector is to mitigate the socio-economic
I Decisioo c(2c t 8)5031, adopted oD 10.08.2018, amediry coBmission Decision c(2014)5772, adopred on
20.08.2014
2$ <x-
impact of the COVID-19 crisis in Kosovo, especiaily for lulnerable groups, farmersand micro and small e.terprises, using a gender-responsive approach- The action willcontribute to reducing the effects of the disruptions of the economy on businesses,including microetrterprises aad self-employed women and men- It will also supportagricultual holdings led by women and men to increase productron capabilities andperformance in 2021 compared to 2019 levels and through additional services willcontribute to me€ting the basic needs of vulnerable womeq men and children inminority communities during the crisis. It will also improve public serr.ices andstrengthen oversight and targeting ofpublic spending towards strategic objectives.
The overall objective of the action under Education, Employment and Socialpolicies is to support a,ulnerable groups with social f,rotection following the COVID-19 crisis. COVID-I9. It will strengthen resilience of the social protection system tocope with increasing demand- The action will directly support the most vulnerablepeople, including women, and in doing so it will contribute to maintain an adequatelevel of social cohesion. It will also improve the governance and efficiency of socialassistance and protection through targeted support for the completion of key sectorreforms and ,xi1l suppod women especially as they are the most affected by theeconomic crisis-
Overview of past and on-going EU, other donors'and/or IPA II beneficiary's aciions inthe relevant sectors:
In the sector of democracy and governance previous assistance focused on strengtherringthe capacity of Kosovo institutions, in transposing applyng 21d irnplementing the EUacquis, especially in areas covered by the Stabilisation and Association Agreernent.Furthermore, support was provided for the effective and efficient manageanent and absorptionof IPA funds, the implementation of the EU facilitated dialogue for the normalisation ofrelations between Belgrade and Pristina and increases in effectiveness, independence andaccountability of Kosovo's civil service. Experience confirms that this type of assistance isparticularly usefirl for responding quickly to urgent needs identified in the course ofimplernentation of IPA assistance.
The COVID-l9 response amounts to EUR 68 million, with EUR 5 million to address theimmediate needs (medical supplies and equipment) and EUR 63 million for the social andeconomic response.
Previous EU assistance wrder competitiveness ald innovation sector, more specifically theICT sector was provided through the Technical Assistance and Information Exchange(TAIEX) instument only for the revision ofpolicy and legislation, supporting the RegulatoryAgency for Electronic Communications and Postal Services- Other donors such as the WoridBal& United States Agency for International Development and others are involved in thesector and complernentarities will be ensured when the specific activities ofthe action will bedesigned.
With regard to the action EU4 Resilence and the response to tJre crisis, synergies are souglrtbetween this programme and the following operations funded by the EU: On-going PFMsector budget support with accompanying technical and twinning assistance to the sectorincluding for intemal audit and contol and for external audit; Plarmed action to improvesocial protection to mitigate the socio-economic impact of the COV1D-19 crisis; EUinvestrnent support to the agriculture sector under direct managernent (6 grant schemes that
3AN (.('-
resultd in 101 contracts financed vlith more rhan EUR 33 million approved so far) and
planned acrion to support small busioess recovery following the covlD-I9 crisis, which
includes support to start-ups and digitalisation- In the response of the intemational
community. close coordination will be eNured between the EU and other donors-
Or.er the past 10 years, the EU has supported several pnojects under EmFlo)'ment and Socialpolicies iector, iealing specifically with social protection- The main lessons leamed from
previous assistance in-clrrde ensuring basic services, strengthening accessibility to social
services and personal protecti.ve equipment for front-li::e workers to mitigate the effect of the
pandemic, and stengtirening the financial, institutional and legal system build upon prwious
actions supporting th" p.o".rs of decerrtalisation of social services, and the needs ofdiscriminaied or rnost l'ulnerable groups such as children' women and people with
disabilities. Two consecutive projects supported the capacities of the institutions to advance
the decentralisation process (particularly as regards quality assurance, budgeting- and
licensing).severalprojecsfilndedunderthelPACivilsocietyFacility(CSF)andthegutopei lnstrument for Democracy and Human rights (EIDIR) support the advocacy and
partn-ership efforts of civil society orgaoisations (e'g- KOMF, HandiKos, Kosovo Women
iletwork, SOS Kosovo, among others) to protect the rights of citizens in need through
cooperation with institutions ai central aad local level and participation in relevant policy
making and consultation mechanisms-
The previous tluee phases of the commrmity Stabilisation Prograrnme (IPA 2009, 20-11. and
20ia), as well as the ongoing one (2018) have been monitored and evaluated several times
o.rrr.'tl" implementation-pe.ioa from 2010 to present. In the latest external evaluation from
20i7, it was noted that the "the relevance of the Community Stabilisation Programme is
confirmed throughout the three phases of the programme"' The Community Stabilisationprogra.nrme has
-alemonstrated a iematkable level of effectiveness: 100o/o of benefisiaries
,isiied -" effectively running stable busioesses and 100% of community interventions are
regularly used by the commrmities. Start-up businesses are generating a livelihood for the
individual families despite a challenging business/trade environment'
Since 2013, the EU financial support to gender equality, women's participation and
empowerment was delivered primarily through central level advocacy jointly with more than
l5ti community level initiatives (as part of EIDHR and IPA CSF programmes)'
L'*.;l ofAcrtons foreseen ander the sekcted Sectors/Piorities:
Indirect management
With entrustedentity
With IP.{ IIb
Democracv and Governance
EU AcquisApprcximation Facilityand Young CeliScheme
EUR 6 000 000
EUR 6 000 000TOTAL
Com Innovation Iture and Rural D ment
EU4 Innovation EUR 4 000 000
S ector/FrioritY/Action
4\\ {-
I
Directmanagemetrt
I
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I
EL 4 Resilience EIjR. 25 500 0c0
TOTAI, EUR 30 500 000
Education, t and Social Policies
EU4 Social protectionfollowing the COVID-19 crisis
ELrR 4 400 000
The envisaged assistance is deemed to follow the conditions and procedures set out by therestrictir€ measures adopted pursuant to Ardcle 215 TFEU2.
TOT.4L EUR 4 400 000
ELIR 40 900 000
2-Z DEscRrprIoN a\D IMPLEML\TATro\ oF Tm AcrroNs
SECTOR Demo and Governance EUR 6 000 000
EU AcquisFacility atrd
ApproximationYoung CelI
Scheme
EUR 6 000 000Action 1
(1) Description of the Action. objectives, expected results and key performanceindicators
. Description ofthe action and objectives
The overall objective of the action is to facilitate the approximation with the EIJ acquisby enhancing capacities of the Kosovo administration for efficient use of IpA funds andfor an efficient and professional Cil.ii Service at all levels il Kosovo-
The specific objectives of the action are:
- To strengthen technical and administrative capacity of the Kosovo administrationin relation to approximation with the EIJ acquis and to support the effective andefficient implementation of IPA assistance;
- To support the implementation of existing or future agreements reached withinthe Belgrade-Pristina dialogue;
2 wwur saactionseap,eu Please uote tbat the sanctions m4r is atr IT tool for ideati$ing &e sanaioas regimes.The source of rhe saactioos stems &om legal acts published in tle Official Journal (O). In case of discrcpaacybetweeo the published legal acrs aod the updares on thc website it rs the OJ version thar prev1ails-
5
EUR 7 460 000
EIiR 7 460 000
EUR 7 460 000
Ar
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TOT.{L
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- To improve the professionai capacity of the crvii service to better serve Kosovo
citizens and miet obligadons arising Aoni th€ Stabilisation Association
Agreemeot.
Expected results
- Coordinated response to meet urgent and unforeseen needs related to Kosovo's
frr-p"*porp""tive,andcapacrtiesneetledforprogrammiog/implernentationoflPAfimds;
- office of the Prime Minister and relevant line minisEies capable of preparing and
developing prograrnming documents and aligning programmes with relevant
processes and Policies;
- Relations between Kosovo and Serbia have improved;
- Progress been made in the integratioa of northern Kosovo structures and mutual tust
baween comrnunities has increased;
- Selected students, including an equal representation of women and minorities'
involved in tertiary education ia EU outstanding academic institutioos'
Key perfomrance indicators
- Degree of the office of the Prime Midster's responsibfity for coordination and
management of EU assistance programmes;
- Number of projects develope{ and implernented under the EU acgzis approximation
facility of2019;
- Quality docurnents developed and well defined IPA arurual Fogrammes;
- Degree of implementation of Agreernents reached within the Belgrade-Pristina
dialogue;
- Nunber of YCS grantee completing their academic programmds;
- 7o of female YCS graduates employed-
(2) AssumFtions and conditions
- Continued political corunitment for ongoing EU reforms and IPA implementation;
* Continuation of Belgrade-Pristiaa dialogue;
- sufficient resources allocated to implement the agrcements reached in the Belgrade-
Pristina dialogue;
- Availability of EU MS tertiary education institutions for the enrolrnsrt of the YCS
grantees;
_YoungCellAlumniAssociationissustainabletomentorandmonitortheYCSgraatees.
The implementation of this action is subject to the following conditions:
6 @-
a) Pumose of the sants:
Depending on the needs of the benefrciary, one or more call(s) for proposal for twinningcontracts or grmts may be organised in line with the objectives of the EU AcquiApproximation Facility and Yormg Cell Scheme:
(3) Implementation modalities:
(3)@) Direa management
Procutement:
This part of the action will contribute to achieving the following specific objeaive:- To strengthen technical and adminisFative capacity of the Kosovo administration in
relation to approximation with the EIJ acquis and to support the effective and efficientimplemantation of IPA assistanc€
- To support the implemantation of existing or future agreernents reached within theBelgrade-Pristina dialogue
The global budgetary envelope reserved for procur€rnerlt- EUR I 500 000
Grants (includins
- To strengthen technical and administrative capacilv ofthe Kosovo administration inrelation to approximation with the Er-t ccquis and to support the effective and.efficient implementation of IPA assistance
- To support the implernentation of existing or fut,re agreements reached within theBelgrade-Pristina dialogue.
- knprove professional capacity of the civil service to better serve Kosovo citizeru inthe European perspective, promoting absorption of young professionals ensuringinnovation and leadership, and balanced representation of men and women-
b) Twe of applicants tareeted:
ln the case of tu.inning grants, applicants must be EU Mernber state administrations ortheir mandated bodies.
For the grant contracts the applicants must be legal entities, local authorities, publicbodies, intemational organisations, Non-govemmental Organisations, economic actorssuch as profit or non-profit organisations and agencies baseri in EU Member Statesinvolved in cultural and educational activities-
7Atr q-
- Office of the Prime Minister as National IPA Coordinator ro take the responsibilir_,- tosecure employment for the yCS graduates;
- office of the Prime Minister to s€cure a commitrnent of the co-financing for the nextrounds.
Failue to comply with the requirernents set out above ma_y lead to a recovery of funds underthis programme and/or the re-allocation of future funding.
(4) Scope of geographiczl eligibilit-v for procurement and grants
The geographical eligibilrty in terms of place of estabiishment for participating in
Drocwerne-nt and grant "*-a pt"J"i"' ani i" terms of origrn of supplies .purchased
itH;iJr"di;il u-arr" ."t aoa iet out in the relevant contractual docunents shall applv.
Competitiveness'Agriculture
Innovation,and Rural
EUR 30 500 000
EUR 4 000 000
(1) Description of the Action, objective' expected results tnd key performance indicators
Description of the action and objectives
Theoverallobjectiveoftheactionistoincreasetheefficiencyandproductivityof&eprivate sector through increased use of ICT' create proPer and safer e-businessre-
commerce ecosyst.a, *o 'rrtpro ""
electronic service delivery for citizens and businesses
;;t;;;;" ;t;'J"J'or services on websites' and accept online pavments and instant
orders-
The specific objective of the action is to improve performance ofbusinesses by increased
ICT usage.
Expected results
- Envirorunent for e-mmmerce/e-business is improved;
- Support to digitalisation ofMedium Small and Micro Enterprises is increased'
Key performance indicator
- Common specifications for the eID fiamework within public administration tested and
implemented;
- eID system - in line with the EU electronic Identification and Trust Services (eIDAS)
t"gutrtion - operational for private sector and citizens; ,
- Number of Medium Smai and Micro Enterprises (supported with ICT advisory
services;_ N"mi* orvr"aium Small and Micro Enterprises implernenting e-business skateges;
- Number of ICT trainings delivered'
(2) AssumPtions anil corulitions
The proposed action continues on already established cooperation between different
sovemment instirutions, p'''u* t** t"pr"sentati"s ald representatives of the donor
ilmmuniry in the form of the Steering cornmittee'
The action is based on the Kosovo Information Technology strategy' rvhich is the main
i""rt r"* f.. a""elopment of the IT sector and will mntribute to reaching the objectives set'
8
kY- €-
The global budgeirry env'lope reserved for grant: EUR 4 500 000
Action 2
cf
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SECTORI
EU4
The implementation of this action is subject to the following conditions:
- Adoption of legislation/la*' on Eansposing eIDAS in Kosovo including the setup ofthe e-commerce unit in Ivlinistry of Economic Development-
Failure to comply with the requirements set out above may lead to a recovery offunds underthis programme and/or the re-allocation of future fimding.
(3) Imp leme ntatio n m odalities
Procurement:
The action will be implemented through public procurement procedures and will contribute toachieving the following specific objective: to improve performance ofbusinesses byincreased ICT usage-
The glolral budgetary enveiope reserved for procr.rernett: EUR 4 000 000
(4) Scope of geographical eligibilily for procurement ond gran*
The geographical eligibility in terms of place of establishment for participating inprocwement and grant award procedwes and in terms of origio of supplies Purchased as
established in the basic act and set out in the relevant conkactual documents shall apply-
Action 3 EU4 Resilience EAR 26 s00 000
(1) Description of rte Actinn, objeaive, erpecteil results and key perfurmance indicators
c Description ofthe action and objectives
The overall objective of this Resilience Contact is to increase resilience and kansparency intimes of crisis and mitigate the socio-economic impact of the COVID-l9 crisis in Kosovo,especiaily for rulnerable groups, farrners and micro and small enterprises, using a gender-
responsive approach.
The specific objectives include:
- The effects of the disruptions of the economy on businesses, includingmicroerterprises and self-ernployed women and men are reduced,
- Agricultural holdings led by women and men with increased production capabilities
aad performance in 2021 compared to 2019 levels;
- Basic needs of vulnerable wome.l, men and children during the crisis are met througlr
additional services a.n'd transfers; and,
- Improved public services, and transparency and targeting of public spending torvards
strategic objectives.
results
The Resilience Contract will contribute to the following expected results:
9l* tr-
Kosovo manages to mitigate the socio-economic impact of the COVID-l9 crisis in
fo.oro, .rp""-i"lly for l'ulnerable groups, farmers and micro and small enterprises'
using a gender-responsive approach;
Agricultural holtlings led by women and men with increased production capabilities
ard performance il202l compared to 2019 levels;
Vuherable individuals' income and access to basic services are preservd using a
gender-responsive aPProach,
Strengthened resilience through improved public services and better oversight and
targeting of public spending towards strategic objectives;
The key performance indicators include: Number of people and legal entities reached
for economic relief as a result of the activities suppolted under this Action
(disaggregated bY gender);
Publicly available information on the legal entities receiving grants and state aid:
Number ofbusinesses, including self-employed and microenterprises benefitting from
the measures foreseen urdo tf," Economic Emergency Package (disaggregated by
ethnicity, whenever possible, anil gender ofthe owner and size of the company);
Number of households benefitting from &e measures foreseen under the Economic
Emergency Package (disaggr"gtt"d by gender of the head of household and ethnicity
where applicable);
Nr:mber of fanners with expanded production capacity as a result of this Action
(disaggregated bY gender);
Approved National Strategic Management Framework by govemment'
(2) Assumptions and conditions
No conditions for the Resilience Contract
(3 ) Implementatio n modalities
(3)(c) Direct manogement through Budget Support
a) Elisibilitv for budset rt
Public policy: The action will be directed towards supporting the Emnomi" !-1qT^"1Packageadoptedbythegovernmentotr3lMarch2020.ThemeasuresamountstoEURlT9.6
-iftoi, of *1,r"fr iUn I OS million financial support to the private sector and their ernployees
il-d.i4' .r the fiscal package), ELIR 29'6 dll*"- h...':pport to the wglfare svslem
i*"nU-;* (16.5% of ihe fisia'l'packagey and EUR 45 million to support public institutions
*f,f, e'r"" for affected municipaiities ta aaaitign4 -gontributions
to the public employees
*oitilg in ,rr" front_Iine anil to iupport financial 1i+r_ditv of public enterprises such as water,
transport, waste treatment --pu,io, etc' Q5Yo -of the fiscal package)' The package is
J"#"a u" a credible and focused strategy to provide relief to &e groups that have been most
i-p..,J tV the crisis socially and economicaly in the short-to medium term' A fi'rther
ernergency package is plarmed by the Govemment'
-tar 10 s-
trIccraeccrcmic pofic_u. Kosovo has conrinued to implement stabilir)-oricnted poiicies stncethe last programme u'ith the Intemational Monetary Fund (IMF) ended in 2017. Prior to theCOViD-19 crisis, Kosovo's economy has consistently grown above the Westem Balkansaverage for the last ferv years. According to the Kosovo Agency of Statistics, the prelimiraryannual grorvth rate for 2019 is 4.002, rvhile the annual growth in 2018 was 3.8%.In 2019, thecurrent account deficit fell sigmficantly to 3.2% ofGross Domestic Product as compared to amedium-term trend of 5-8% of Gross Domestic Product. The budget deficit fell to a recordlorv of 0.3% of GDP, well withrn the 2% fiscal nrie, albeit mainly due to the late approval ofthe budget law in 2019 and the low execution rate of capital projects.
Public financial management: The Public Financial Managernent Reform Srategy 2016-2020remains reievant and credible and its implementation is overall on track. A new sfategy isbeing prepared, with support from the European Union's Public Financial ManagementTechnical Assistance. to replace the current one that ends at the end of this year. The day-to-day monitoring of the implementation of the Public Finance Management Reform Strategycontinues to be managed by the Public Finance Managernent Coordination Group at thetechnical level, chaired by the Secretary-General of the Ministry of Finance and Transfersbeing the chair.
Kosovo has dernonst-ated progress in Public Financial Management and Domestic Revenue
Mobilisation through the follou'ing key reforms:
- improved macro-economic forecasting capabilities demonstrated through a year-on-year decreasing deviation of projected tax revenues versus out-tum (-2.7"/o in 2018and -4%o tn 2019 within forecast targets);
- increased cenkal monitoring of the internal audit and control fimctions in budgetorganisations by the Central Harmonisation Unit;
- increased firlly implemented recommendations of the external auditor, from 34% to39%;,;
- well-functioning e-procurement system mandatory for all procurement activities,including submission of bitls by economic operators;
- in the Treasury, from the begirming of 2019, ali payments electronically authorised
directly by the Treasuqr to the Central Bank of Kosovo (CBK) Systern, inciudingvarious controls, replacing the previous physical transactions sent manually and
executed by the Central Bank ofKosovo witl a lot ofoperational dsks involved.improved revenue collection performance during the years 2018 and 2019 (revenue
increased around the same as Gross Domestic Product growth, albeit offset by the
&op in revenue due to the Stabilisation and Association Agreement (SAA) with the
EU, equal to EUR 64 million in 2019 and EUR 43 million in 2018).
- increased collection oftax debt as 29-5% is repoded during the first six months of theyear in 2019, up from 25% in 2018. (Debt collection in 2018 amounted to EUR 77.2
million, compared to EUR 66-8 million in 2017, at increase of 15.6o%. By the end of2018, the total amount oftax arrears that are coliectible was EUR 262.3 million' Theannual report of2019 is not yet out)-progressive increase in the number of taxpayers who declare their income voluntarilyon an annual basis from the baseline of62,8E6 in 2015 to 68,838 in 2018.
,AY 11 g-
EuCget t.-ar;sparenc:; and o u-ersight of the budget: The eniry- point is met since the tiraft and
enacted B,ldget l-arvs of the last three years- including 2020 have been published in the
required languages, Budgetarf information is generail-v-' accesslble, timely. comprehensive,
an,l sound- Tle ipp.ou'ed b",1get law is published irr the OfEcial Gazette3-
Budget information- including financial statements, budget circulars, reports and forecasts are
arail'able to the general public on the lvebsite of the Ministry of Finance and Transfersa. As
these documents are in pdf-format, there is also since December 2018, a Transparency portal
ofthe Ministry ofFinance and Transfers5, which contains budget information in excel-format
wirh possibilities for easy comparisors to tre made tretween years (data available since 2015).
External audits and controls are also performed u'ith high integnty.
b)
c
Overall Objective is ro increase resilience and transparency in times of crisis and mitigate the
socio-economic impact of the COVID-19 crisis in Kosovo, especially for urlnerable groups,
farmers and micro and small enterprises, using a gender-responsive approach-
Specific Objectives:
- The effects of the disruptions of the economy on businesses, including
microenterprises and self-employed women and men are reduced;
- Agncultural [6]ding< led by women and men with increased production capabilities
and perlorrnance in 2021 mmpared to 2019 levels;
- Basic needs of rrlnerable womerl men and children during the crisis are met tl[oughadditional services and transfers;
- Improved public services, and better oversight and targeting of public spending
towards sEategic objectives.
ected resul
O ectves
Kosovo manages to mitigate the socio-economic impact of the COViD-19 crisis inKosovo, especially for vulnerable groups, famers and micro and small enterprises,
using a minority sensitive and gender-responsive approach;
Agricultural holdingS 1ed by women and men with increased production capabilities
and performance in 2021 compared to 2019 levels;
Vulnerable individuals' income and access to basic services are preserved, using a
minority sensitive and gender-responsive approach;
Strengthened resilience througlr improved public services and better oversight and
targeting of public spending towards skategic objectives.
3 hftrrs://Pzk.rks-gov.ret defauh. a-spx
I hftps://rcf rks-sov,aeten-u,9?
5 hrrps:l/pimi-.rks-gov.nel'page-asPxlid=Z.1
12 <-T
d) Main budget support acnvrtles
The main activities to implerirent the budget suppon package are policy dialogue, financialkansfer, performance assessment, reportin,s afl d capacity deyeiopment.
With regard to policy dialogue, the objectives will relate to the same measures and will centreon the horizootal thernes of:
i) COVID.I 9 public finances and transparencyii) Public sen'ices
The funding for this budget support will be directed to the Special COVID-I9 account rlnderthe Single Treasury Accounl As there are sigrrificant amounts of fiuding treing disbursedfrom the Special COVID-I9 Account under the Single Treasury Account for exkaordinarymeasures tkough a number of charmels and budget organisations, special external auditoversight is needed. A special performance audit wili be pertbrmed by the Kosovo NationalAudit Office (KNAO) dunng Q3 or Q4 of 2020 of these f.rnds with the aim of providingextemal oversight ofthe performance of measures foreseen in the package. In addition, as isrequired by 1aw, expenditures will be audited as part of the regular financial audits by theKosovo National Audit Office (KNAO) of a1l budget organisations after tle end of thefinancial year-
The EU Office in Kosovo can also, upon a specific request in this regard to the govemmen!have access to &e intemal audit reports (in Albanian) of the budget orgaaisations thatchamels funds to the measues targeted under this contract as mentioned above. Such re.ports
will be kept confidential, and be used for intemal monitoring of the fimds management by theEuropean Union-
For the Commission, the monitoring and assessment of the eligibility crite.ia for thedisbursement of the tranches will be carried out by the EU Office in Kosovo (European
Union Office) and the geographieal unit of DG NEAR supportd wheu necessary, by otherCommission services and/or international organisations.
e) tarv actrons
No complementary support will be financed under this contract.In the response of the international communiry, close coordination \irill be easured betweenthe EU and the following entities:
o The Intemational Monetary Fund (MF)o The World Bank CWB)o The Deutsche Cesellschaft fiir lntemationaie Zusammenarbeit (GIZythe KfW
Development Bark (KFW). The United Nations Development Programrne ([INDP)o Regional Cooperation Council (RCC)
(2) Scope of geographical eligibility for procurement and grants
Not Applicable
13 .4')<'t
Education, EmPloYmentSocial Policies
and: EUx. 11 860 ooo
EIl4 Social protection folhwingthe COWD-19 crisis
EUR 11 860 000Action 4
(1) Description of the Aaion, objective, expected results and kelt performance indkators
This action will support urlnerable groups with social protection iollow'ing the covlD-19crisis. It will streogttren resilience of the social protection system to cope with increasing
demand-
Expected results
lmproved service provision for the most vulnerabie groups amidst the COVID-I9'pandemic and its aftermath;
- Strengthened accessibility to social services and personal protective equipment for
front-line workers to mitigate the effect of the pandernic;
- Delivery of social services througlr a sub granting scheme and new financing
m""hu.ris- for social services in place and technical assistance delivered to public
institutions involved in the provision of social services to help mitigate the socio-
economic impact of the COVID-I9 crisis;
- Non-majority entrq)reneurs supported & enhanced social integration between local
ethnic communities amidst the COVID-19 pandemic and its aftermath;
- Capacity development and ft:ancial support given to civil society organisations
working for gender equality amidst the covlD-]g pandernic and its aftermarh and
beyond.
Key performance indicators
- Number of individuals who receive humanitarian support in a timely and gender
responsive marmer, disaggregated by ethnicitv and gender
- Nwnber of transportation servicev mobile clinics operational and utilised by* talget
groupVbeneficiaries disaggregated by gender;
Number of fronlline workers who benefit from protectrve personal equipment'
disaggregated bY gender;
- Number of women and girls (including from vulnerable and marginalised groups)
who access life-saving services during restrictions created by COVID-19;
- Number of children with disability or adults in need who have access to quality
social services, disaggregated by gender;
- Number of home-based services for the elderly, chiklren and adults in need
disaggregated by ethnicity and gender
- Number of befleficiaries of sen'ices for the victims of domestic violence' gender-
based viola:ce, violence against children and trafficking:
\$
14
q-
SECTOR
The central institutions and in particular the Minisfy of Health and the Ministrv oflocal Government Adminisaation shall in a timely maurer provide detailedinsfuctions to the municipalities artd the centers for social work regarding their roleand functions for operations at municipal level as well as on the modalities toparticipate and make best use of the possibilities offered by the action;
The beneficiary institutions shall take all the necessary steps to ensure the smoothimplernentation of each planned operation (such as timely provision of lists orspecifications for works or equipment; timely issuance of permissions for works,kansportations etc.; cooperation protocols or other adminiskative acts iinked to theexecution of the programme) and maintain a good cooperation *'ith theimplementing partners.
For all components and parliculariy for component three the following assumptions applyin the mediumflong-term period:
- Adoption by the central govemment of the new legislative and regulatoryframework for social and family services and the specific financing formula based
on the social needs mapping in each municipaliSl
Improvement by the central governrnent (harmonise and clarifr) of the existinginstitutional frameworlg including regulations and policies to contract soclal
services 'Jrrough non-government organisation as a pre requisite to accessible and
quality service delivery;
Adoption by central government of a new iaw that would reform the Social
Assistance Scheme in order to eliminate discrimination, promote inclusion,eqdtabilir-v and overall effectiveness, The new law should aim to introduce areform of the schemes by eliminating the categorical criteria" which serve as
inexact proxies of poverty.
( 3 ) Imple m e ntatio n mo dqlitk s
(3) (a) Indirect management
lx15
- Number of public institution representatives completed gender training provided bytraining institutions disaggregated by gender;
- Number start-up and operational businesses established through the disbursement ofassistance by the end-of-the action, disaggregated by gender ofowner:
- Number of minority commmity developmert projects fimded;
- Number of beneficiaries of social inclusion initiatives implernented, disaggegatedby gender, etlnicity and ability status;
- Number of women's civil society organisations that have received support underthis Action @URF, GAP II, indicator 18.1)-
(2) Assumlrtions and conditions
For the implementation of the action the following conditions are the most important in theshort term:
<g'
ln accordance with regulation (EU' Euratoar) 2018i-1-046 of thc Er'ropean Parliam^ent and 'of
rhe council of 18 JuIy 201C A;icle 62 (l)(c)(ii) and Article 156 that reler to the
lmplemenration of extemal actions throu$i indirect management with Intemational
Organisations:
A part of this action may be inoplemented in indirect manageme[t with United
Naiions Development Programme (UNDP)'
This implementation entails rhe following:
Output 1 : Impro ved service provision for the most vulnerable groups amidst the COVID- i 9
pandemic and is aftermath''
The envisaged entity has been selected using the following criteria:
-Experienceinbuildingresi]iencetocrisisanderadicatingpoverty,includingitsestablished partnerships, spans global, regional and locai levels' Over the past 20
;;;;i; K;"", urqop r"" "'oili'h"d ant supports services to address the needs of
womeq minoritio, uoO ott"t aitenfranchised gtoops in partnerships with^central and
municipal institutions, including Civil Society Organisations - (CSOs)AIon-
g"";;*,"1 Organisaiions iNCdsl ana gr:ss-root/communitv level organisations'
Furthermore, tINDp has lrir, i-pori*, wo-rking relations with stakeholders engaged
in dealing *'ith the past ^ *"u"t of addressing the needs of families of the missing
persons irrespective of their ethnicity'
- Continuous work tn emergency reconstruction and rehabilitadon' assistance to
Ji."ar-t g"a commrmities,"go'-"*-"", de of law'.and promotion of employment
g*".utio.rlc,**tty the inielational organisation is implementrng several European
Union (EU) n oa"a op".utions "onttiU"f,ng
to achieve sustainable development of
local commrmities though governance projects and enhanced cooperation b"tt":n
*r*crpai,i* and civrl-soJiety, Regional -Progr-amme
on Local Dernocracy in the
*o,"- Balkans (ReLOaDl' Vfo'*io, tH: Y"t-k:" improving interethnic d'flory"
-J*op"ration through cuitural heritage, funded through the Instrument.contriblting
to Stability and Peace (IcSP), supports i-rinority commrmities to exercise their righs in
respect to cultural heritage'
-UNDPinKosovohasinitiatedaninter.institutionalcoordinationmechanismlinkingthe environment ana nJtfr agenda' This aims to reduce the environment related
burden of diseas" fo. p"ople, Jspecially the marginalised groups who tend to be the
most affected on.s- fno,ii ;n adLessing en'ironmental health issues have been made
in educating to"ri *rn-,-iti"s on the importance of a sustainable way of living and
emtracing fr"rentil'e measures to protect their health'
ln case the envisaged entity would neetl to be replaced' the Commission's services may
select another repiacernent entity using the same criteria'
: All capaciry building activiti€s shall be tnplgnented though &e rcl€.,at rraioing institrtions ofthe Kosovo gov€tdnetlt'
$l6
g-
Part of this action mav be implemented in indirect management with InternationalOrganization for Migration (lOM)
This rmplernentation entails the following:
Output 4: Suppod to minority communities and women entrepreneurs in order toestablisVmaintain production and enhanced social integration between communities amidstthe COVID- l 9 pandernic and its aftermath.
The envisaged entity has been selected using the following criteria:
- Presence and experience in Kosovo with minority commuruties. The InternationalOrganisation for Migration is currendy impiernenting both the EU and Minisry ofCommunities and Retum programmes in the sector (Retum and Reintegration ofdisplaced minorit) communities under IPA 2010, IPA 2012 a ,IPA 2016; (ii)Community Stabilisation Programme (CSP) under IPA 2009, IPA 2011, IPA 2014 andIPA 2018. The activities implernented by IOM wil1 extend the scope and duration ofthe Corununity Stabilisation Programme fV ongoing project. This will enswe themost efficient use of resources since the organisation has institutional mernory, a well-established partnership with all relevant stakeholders, technical capacity and hasalready deployed qualified staff and necessary equipment.
In case the envisaged entity would need to be replaced the Commission's services mayselect another replac€rnent entity using the same criteria-
(3)(b) Direct management (project approach)
Grants:
a) Purpose of the gmnts:
This part of the Action will contribute to Ougut 3: Delivery of social services tlrough asub granting scheme and improve govemance and financing of social services and alll,ulnerable citizens have equal access to quality and accessible social services in Kosovoamidst the COVID-l9 pandemic aad its aftermath.
b) D ect grant award:
Under the responsibility of the Commission's authorising officer responsible, the grantmay be awarded without a call for proposals to Save the Children Sweden, on the basis ofFR fut 195, f) for activities with specific characteristics that require a particular type ofbody on account of its technical competencg its higfu degree of specialisation or itsadministrative powers, on condition that the activities concemed do not fall within thescope of a call for proposals.
The recourse to an award of a grant without a call for proposals is justified because;
Save the Children is a human rights-based organisation with long-standingexperience and expertise ia the area of chii&en's rights and strengthening socialprotection systems, including social protection of vulnerable groups, particularlychildren and women, in Sweden and globally;
Save the Children has long-standing experience in Kosovo, having worked since1997 with all municipalities, institutions and Civil Society Organisations(CSOs),Non-govemmental Organisations (NGOs) in the areas of child protection
/,)t
t7
<x-
and social services' Save the ChilCren works in a holistic and integrated approach to
p.ogr*rng rutoch is crucial for sustainability and accountability of its actions and
interv-enlions.
- The organisation has sigrrificant expertise and experience on child rights-based
protectilon systems, chiltrilhts got'"rnant" and inclusive education and advocacy'
all related to the social service delivery based on benef,ciary needs;
- Save the chil&en possesses solid technical, thernatic, and organisational capacity to
implement the foreseen activities including financial support and sub-granting. to
thtd parties. The non-govemmental organisation has extensive experience *'orking
with partner non-government organisations, having,.supported over 60 p-artner
organisations from Z0tZ-20t9 witi more than 5'5 million EUR in the area of child
prfte.tion through better services, Ilrrthermore the international network of the
Irg."i*,ion can"mobilise expertise, including from its regional office and globally
through its intemational members;
The activities imptemented tlrough this Action (especially undet output 3)' -buiids
on the and fi:rther advances the ichievernents and lessons leamt of the EU funded
project 'support to better social services' which was successfirlly accomplished by
3arie the Cirildren and closely monitored by the EU Office in 2017,2018 and 2019'
Grants:
a) Purpose of the grants:
This part of action will contribute to Output 5: Capacity development and financial- -su-pport
;;;"'a" civil society organisations *o.kiog for gender equality amitlst the CovlD-19
;;;;" and its aftermaih and beyond. (EU Genrter Action plan Obj. 18). Women's and
;rl.' ;ght and specific interestVneeds inform decision making and financial support
i*iatt tI" COVID-I9 pandernic and its aftermatl and beyond'
Thiscallmightbelarrnchedin2020Q3underasuspensiveclausepriortotheadoptionof*rls ae.i.io.r] me reason for the early iaunch of the call is to shorten tle period between the
"Jopt* "r*" decision and the signature of ttre conEact in order to respond timely torhe
i*1, g"r,our"d ty the covlD_ig-crisis and start the impiementation of the activities. The
selectei implernenting partner will provide capacity building and financial suppol. to
*o**', Civrl Society Organisations and vulnerable Sroups to engage in decision-making
p.o""rro and policy refoins, particularly llated to :!e socio-economic crisis resulting
Lon, a" C6VID-1'9 panilernic and its aftermath. The intemal NEAR prior approval
procedwe shall be followed.
b) Tlpe of apPlicants targeted:
The eligible applicants will be legal entities, non-profit civil societ-v organisations
G"*"? ir, rosoro, and internatiolnal organisations with a minimum of l0 years of-"Gi*L _ ,rr" field of advocacy for gender equality, women representation in policy and
decision making, for the eratlication of any form of gender based violence' women
emDowerrnent, experience in working for an equitable society and a better representation of
*omen s penpective in the political and legislative agenda'
The globai budgetary envelope reserved for grants: EUR 4 400 000
(4) Scope of geographical eligibility for Procurement and grants
18
<f-
The geographical eliglbiliry in teir,'rs ol piace of establishment for particrpating inprocurement and grant au aro procedures an<i in terms of ongin of supplies purchased asestablished in the basic acr and set out in the relevant conkactuil documents shau apply.
19
*'
3 I}UNGNT
3,2 INDICA'TIVE IIUDGET TABLE - ANNUAI, AC'I'ION PIIO(;RAMMIi TOR I(OSOVO* FOR 1'III' YBATT 2019 - I'AR'I' II
TOTAI,
I PA-I Ibcneficiary orother thircl-
partycontribution
(EUR)
Total (OUR)
I 000 000 7 000 000
7 000 000
30 500 0tx)
4 000 0()0
2(r 500 000
ll tt60 001)
]] lJ60 0t)0
4tl 3(r0 000 1 000 000 49 360 000
+ The I-U l(:r1tr.r Approxinration facility wil[ 0ovcr tho oosts lbr tlre evaluation il suoh arisc
lndircctManrgcmcnt
with cntrustedcntity
Dil'ectmirnRgcmcnt
lrlUcontrihution
(ur.lR)
EUcontribution
ult
Total EUcontriltution
(IluR)
I 6 ooo ooo6 000 000
I 000 0006 000 0006 000 0000
0 30 500 0()0
4 000 000
30 500 000
4 000 0000
Action l: EIJ lcqtrts Approximalion and
Young Cell Scheme
p9!!!!vs!rci!-lt!4 [uqY,t ti
Action 2: EU4 Innovation
noC6 IIo
0 26 500 000
l r 860 000
1 I 860 000
26 500 000
4 400 000
4 400 0007 460 000
Actiorr 3: Irl.l4 I{osilicncc
7 Education, EmPloYmcnt andPolicics
Action 4; EU4 Sooitrl prolcotion lirllowing thc
Social
COVID- 19 crisis
Objective 1
21t19 l04l 247
Obicctivc 2
2019 I ll4l248
40 900 0007 460 000
A\\
2A
0t Democracy nnd Covernnncc
7 460 000
I
I
I
l
I
\
4 PERTORMAI-CE MoNiTor{tic AIIRANGEI\TENTS
As part of ia perfornance me;Burernent &arnervork, the commissron shali monitor and assessprogress towards achievement of the specific objectives set out in the IpA II Regulation onthe basis of pre-defined, clear, transparent measurable indicators. The progress reportsreferred to in Article 4 of the IPA II Regulation shall be taken as a point of reference in theassessment of the results of IPA II assistance.
The commission will collect performance data (process, output and outcome indicators) fioma1l sources, which will be aggregated and analysed in terms oftracking the progress versus thetargets and milestones established for each of the actions of this programme- as w.e1l as -*reIndicative Strategy Paper.
The overall progress will be monitored tkough the following means: a) Resuir OrientaredMonitoring (ROM) system; b) IPA II Beneficiaries' own monitoring: c) self monitoringperformed by the EU Delegations; d) joint monitoring by the European Commission (DGNEAR) and the IPA II Beneficiaries, whereby the compliance, coherence, effectiveness,efEciency and coordination in implementation of financial assistance will be regularlymonitored by an IPA II Monitoring comrnittee, supported by Sectoral Monitoring committees,which will ensure a monitoring process at sector level-
5 EVALUATToN
Having regard to the nature of the actions of this annuai programme, a mid-term evaluationwill be carried out for the actions or its components via independent consultants contracted bythe Commission. The evaluatioa will be carried out for accountability and learning purposesat various levels, in particular with respect to ensuring the sustainability of the actions.
The Commission shall idorm the implernenting partner at least 2-3 months in advance of thedates foreseen for the evaluation missions. The implementing parher shall collaborateefficiently and effectively with the evaluation experts, and inter alia pror"ide them with allnecessary inforrnation and documentation, as well as access to the project prernises andactivities.
The evaluation reports shall be shared with the IPA iI beneficiary and other key stakeholders.The implementing parher and the Commission shall analyse the conclusions andrecommendations of the evaluations and, where appropriate, in agreement with the IPA IIbeneficiary, jointly decide on the follow-up actions to be taken and any adjustrnentsnecessary, including, ifindicatd the reorientation of the project-
i/)1
*=
IPA Il Finarcing Ag:eemeal Arnual P.ograirmes - Annex Il - Gaerdl Conditions (v- Apnl 2020)
ANNEX II . GENERAL CONDITTONS
Contents
Part one: Provisioos Appricable to Activities for which the IpA II beneficiarv is the Cotrtractin
I
2Authority..,*.....,Anicle I - General principlesArticle la - Duty to inform, administative saoctions, and failure to act _--
Article 2 - Visibility and courmuaication...-......,-Arlicle 3 - Ex-ante conEols on grant and procurement procedures and on exposl controls on contractsaod grans to be performed by &e CommissionArticlc 4 - Bank accoun6, accomling systems, and cost recognised.-.-,,-_--...--.-.-Article 5 - Provisious on pa).Eents made by the Comnission to tbe IpA II beseficiary..-..--_,---_-......--...Article 6 - Intem.rption of paymentsArticle 7 - Recovery of funds......----..-
Part Two: Provisions Applicabte to Budget Support..._-.............----.-_
...23
4
45
667
7778
8
Articlc 8 - Poiiry dialogue...-----.......--..-
Articlc l3 - Pernits and authorisatioo--.-
Anicle 9 - Verification ofconditions and disbursementAnicle l0 - TraDsf,arcncy of budget suppon.--.-Article ll - Recovery ofbudget support
Part Three: Provisions Applicable to this Financing Agreement lrrelpective ofthe ManagementMode.-.--.....-....-----
Article l2 - Execurion period operational implemeution period and contracting deadline_.-_-......-.-.-...-..
Article i4 - Reporting rcquirementsA(icle i5 - lntellectual propeny" rightsArticle l6 - Consultation berween the IPA II beneficiary and the Commission
Article 20 - Dispute senlemint arargements -....
88
99
9
9
il
Att ,l-
1
IP.{ II Fine-:r.irg Ageement.A.onual Progtammes - Annex II - Generai Conditions (v Apni 2020)
Fart One: Proyisions Applicable to Activities for which the IPA IIbeneficiary is the Contracting Authority
Article 1 - Geueral principles
( I ) The purpose of Part One is to lay out the rules for implementing the entrusted budget-implementation
tasks as described in Annex I and to deline rights and obligations of the IPA tr beneficiary and the
Commission respectil'ely in carrying out these tasks.
Part One shall apply to the budgetimplementation tasks entrusted to the IPA II beneficiary related to
the Union coutibutioo alone, or combined with funds of the IPA II benefrciary or fimds of a thirdparty, in case such funds are implemented injoint co-fLnaacing, i-e. where tbey are pooled-
(2) The IPA lI beoeficiary shatl remain responsibte for the fulfillment ofthe obligations stipulated in this
Financing Agreement and in the Framework Agreement, even if it sub-delegates ro other entities
identified in Annor I ro carrjr out certain entrusted budget implemenration tasks, The Commission, in
panicular, reserves the right to suspend payments, and to suspend and./or terminale this Financing
Agreemetrt oo the basis oftle acts, omissions and/or situations ofa.oy designated entity.
(3) Thc tasks referred to in paragraph t ofthis Anicle shall be carried out by the IPA II beneficiary inaccordance wirh the procedures and standard documents laid down and published by the Commissiou
for the award of procuement and grant cort acts iu extemal actions, itr force at the time of the launch
of the procedure in question (PRAG), as well as in accordaace with the required visibility and
commrmication stalldards referred to in Article 2(2),
The IPA II beneficiary shall conduct the procurement and grant award procedures, conclude the
resulting contracts, and etrsure that all r€lewant documents for audit trail are in the language of this
Financing Agreement- For tle purpose of Part One of rhis Financing Agreement every rcference to
gratrt contracts shall also include conaibution agreement a.od every reference to grant beneficiaries
shall also include organisations having signed conaibution agreements-
(4) The IPA tr beneficiary shall respect the mioimum rate ofits contribution specified in Annex I. In case
of contributions from both the IPA II beneficiary altd tle Union, the IPA II beneficiary contribution
shatl be made available at the same time as the corresponding conaibution &om &e Union-
(5) The IPA tr beneficiary sha1l keep all relevant fiaaacial and cotrtractual supporting docuEents fiomthe date of rhe enEy into force of this Fina.cing Agreement or as &om aD eadier date in case if rhe
procurement procedure, call for proposals or direct grant award procedure rvas larmched prior to the
entry into force ofthis Financiog Agreernent:
(a) For procuemem procedures in particular:
a) Forecast notice with proof ofpublication of the procurement aotice and any corrigenda;
b) Appointmeot of shortlist panel;
c) Shortlist report (inc[. annexes) and applications;
d) Proofofpublication ofthe shonlist notice;
e) Letters to non-shortlisted candidates;
f) Invitation to tender or equivalent,
g) Tender dossier including annexes, clarifications, minutes ofthe meetings, proof ofpublication;
h) Appointmenr of the evaluation committee;
2
+=r\vd
IPA 1l Finaucirg .{g:eemenr .{'rn!al p.ogiz:nmes - .4.orex II , cetre.al Cocdrrions (v. Ap;rl 2020)
i) Tender opening report, including annexes;
j) Evatuation I negotiation report, includiag anaexes aad bids receive{r
k) Notification lenei;
l) Covsr letter for submission ofcontracq
m) Lettels to unsuccessfirl candidates;
n) Award / cancellation notice, inciuding proofofpublication;
o) Signed contr-acts, amendments, riders, implementation reports, and relevart correspondence
(b) For calls for proposals and direct a)vard ofgratrts in panicular:
a) AppointmeDt ofthe evaluation coumittee;
b) Opening and adminiskative report including annexes and applications received;2
c) LetteE to successfrrl and unsuccessful applicants following concept note evaluation;
d) Concept note ewaluation report;
e) Evaluation rcport ofthe firlt application or negotiation r?ort with relevant annexes;
f) Eligibility check and supporting documents;g) Lettcrs to successfirl and ,nsuccessfirt appticants with approved reserve list following full
application evaluation;
h) Cover letter for submission of grant contract;
i) Award,/cancetlation notice witi proof ofpublication;
j) Signed contracts, amendEeots, riders and relevant correspoudence_
In addition, financial and contractual docu.nents referred to in par:agraph 5(a) and (b) of this A_rticleshall be complemented by all relevant supporting documens as required by the procedures referredto iu section 3 of thrs Article, as well as all relevaar documentation relatitrg to palments, recoveriesa',d operating costs, for example project and on the spots checks repons, acceptance of suppries and\yorks, guarantees, warranties, reports of supervising engineers-
AII relevant fiaancial and contrach:al docr.rments shall be kept for the sane duration il accordancep'ith Article 49 of rhe Framework AgreemenL
(6) For the purpose of the application of Article 25 of the Framework Agreement on data prorection,personal data shall be:
- processed lawfuUy, fairly and in a transparent rnanner iD relation to the data subjecq
- collected for specified, explicit and legitimate purposes and not firrther processed in a manner thatis incompatible with those purposes;
- adequate, relevart and limited to whal is necessary in relation to tie purposes for which they areprocessed;
accurate an4 where flecessary: kept up to date;
- processed in a manr:er that ensures appropriate security oftie peisonal data aDd
I A:nn:nm of Effiad bids arE y6 a,rs 6.dM oaJE !@ffir p([email protected] :i'n;,aie of BlllGrFJI 4ptiat:E Lhr 16 :fta E:. d@ of d. Ed !'Gdr.
3
'']-Aa
IP,{ iI ! r.3nc:.g ,q.greemeni Ani'Jai ProgrzrmEes .r.ni€:< iI Gcneral Ccrdiiiolls (v Apnl2020)
kept in a form *'hich permrts identificatio' of data subjects for no longer thalr rs necessary for the
purposes for u'hich the personal data arc processed-
personai rj.ata included in docurnents ro be kept by rhe IPA II bene{iciary in accordance wifi Article
1.5 has to be deleted once tie deadlines set out in Article I i have expired-
Article 1a - Duty to itrform' administrative sanctions' and failure to act
( i ) \lhen applying the procedures and standard documents taid dowtr and published by the Commission
for the a"vard of procuemeut and grant contracts, the IPA II beneficiary shall accordingly ensure that
Bo EU inanced procurerueor or g;t cqltract is awarded 1o aa economic operator or grarlt applicant
if the economic operator o. faat applicant *ho either itsetf' or a person having nowels 9frepresenlation, decision making or conttol o"r it is in one oflhe exclusion situarions prol'ided for in
the retevant procedures and staodard documents oftlre Commission'
(2) The lP,A II beoeficiary shall inform rhe CommGsiou immediately when a candidale' tenderer or
applicart is irl a situation of exclusion fiorn participating iD procurement and graat au-ard procedures'
has committed irregulantres and fraud, oi t'"' U""" found in serious breach of its contractual
obligati ons,
(3) The IPA iI beneficiary sha1l take into account the information contained in the Commissions 'Early
Detecdon ald Exclusion System' @DES) wheo awarding procureEent ald grant contracts- Access to
the information can be provided through the liaison poin(s) or via consultation using the following
means: (European Commissioo, Directorate-Geneml for Budgel' AccouDting Ofiicer of the
commission, BRE2-13/505. g-io+g Brussets, Belgium and by email to BIJDG-C6I -ExcL
[email protected],eu in coP-v to the Commission address identified in Article 3 of the Special
Conditions)-
(4) Where the IPA II beneficiary becomes aware of an exclusion situation in the implementation ofthe
tasks described in Annex I, the IPA II beneficiary shall impose upon an economic operator or a grant
applicanr an exclusiol ftom its future procuremeBt or glaDt award procedures' The IPA II beneficiary
may aiso impose a financial penalty itoportional to the value of the contract concemed' Exclusions
*iru, nnuo"iut penalties shall be ffiosed followirg an adversarial procedure ensurilg the righl of
defence of the person concemed- The IPa beleticiary shall notiff the Commission in accordance
with paragraPh I ofthis Article-
(5)Inrespectofparagraph4oft}risArttcle.thelPAllbeneficiaryiscousideredinfailuetoact,ifitdo.s nor tmpose exclusion and/or a financial penalty upon the economlc oPerator or grart applicant-
(6) ln the case of a farlure to act, tlle IPA II treneficiary shall notiry the Commission explainilg the
" a"*o* ior its failure to act' The Comm'ission reserves the right to exclude an economic operator or a
grant uppticant from future EU financed award procedures' and'/or impose a hnalcial penalty on an
economic opemtor or a grant applicant between 2 %o a:rd i0 7o of the total value of the coDtract
concemed
Article 2 - Visibilit-Y a8d commuuicetion
(1) In accordance with Article 24(3) of the Framework Agreemen! the IPA 1l beneficiary shall take the
' ' o"""..rr-, -"ur*"s to emure the visibiliry ofEU firnding for tle activ'ties enmrsted to it' and prepare
a coherent plan of vrsibihty and communication activities which should be submitted to the
Commission for an agreement wilhia 2 months after the entry into force ofthis Financing Agreement'
(2) These communicadon and visibililv activities shalt comlll wilh the Communications and Visibiliry
Manual for EU Extemal Act'ons laid down and published by the Commission irl. force at &e time of
the activiues-
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IPA II Fi*n;iag Ag:e--meat A!x:,.l,al Prograores Arncr iI Gederai CondirioEj (v. Apnl 2020)
Adicle 3 - Er-urlrc controls on-gr.trr end procuremeot procedur€s and otr er /os, c{rDtrols otrcontracts and grants to be performed by the ComDission
(l) The Commission flray exercise ar drl? conkols on the teodering of contracls, launctr of calls forproposals and the award of contracts and grants for &e iollowing srages of procurement or grartaward:(a) approval of contract notices for procuremenq work programmes for calls for proposals, and any
corrigenda thereof;(b) approval of tender dossiers and guidelines for applicants on grants;(c) approval ofthe composition of Evaluation Committees;(d) approval ofcvaluation re.'ports and award <iecisions:;(e) approval of cootract dossieB and contract addenda.
(2) With regard to ex 4n le corttrols tlte Commission shall dccide:(a) to perform ax aare cootrols oE all files, or(b) to perform ex ade cootlols on a selection of such files. or(c) to completely dispetrse with ei( an re coorols-
(l) If the Commission decides to perform ex anre conrrols in accordance witi paragrdpb 2(a) or (b) ofthis Article, it shall inform the IPA II beneficiary ofthe files selected for ex ante contols- The IPA Ilbeneficiary shali provide all the documentation and information necessary to the Commissio[ uponbeing informed that a file has been selected for er @rre control, at the Iatest at the time of submissionof tle coltract notic€ or t}te work programme for publication-
(4) The Commission may decide to perform erpos, controls, including audits and on-the-spot controls, atany time oo a.By contracts or graas awarded by the IPA II beueficiary arisi[g out this FhancingAgreemenl The IPA II beneficiary shall make available all dte documentation and informationnecessary to tbe Comissiot upon being informed rhat a file has becu selectcd for er posl contol,The Commission may authorize a person or an entity to perform eJ poJ, conlrols on ils behalf.
Article 4 - Bark accounts, accounting svstems, add cost recogDised
(1) After the entry into force of this Financing Agreement, the National Fund and the operaring strucnrreof the IPA II beneficiary that is the Contractirg Authoriry for the Programme shall open at least onebank account denominated ,n euro The total baok balance for the Prograrnme shall be &e sum ofthebalances on all the Programme ba-ok accounrs held by the National Fund and all panicipatingoperating stuctures in the IPA II beneficiary-
(2) The IPA II beneficiary shall prepare and submlt to the Commission disbursement forecast plars forthe duration of the implementation period ofrhe Programme, These forecass shall be updated for theannuai financial repod referred to in Article l4(2) and for each request for funds- The forecass shallbe based on a documeated detailed analysis (including the planned contr:actiug and payment scheduleper contract for the following founeen months) \*'hich shall be available ao the Conunission on
request-
(3) The initial disbursement forecast plan shall conain surnmary annual disbursement forecasts for thewhole inplemeotation period aud monthly disbursemenr forecasts for the first fourteen months oftheProgramme- Subsequent plans shail contain summary annual disburs€ment forecasts for the balance
of the implementation period of the Frograrnme and monthly disbursement forecasts for the followingfourteen months.
(4) The IPA tr beneficiary is required to establish and mainrain an accounting sysrern in accordauce with
l Fd sie 6l:Es &n qp. '..r!6s -E @6B 6,€i-q 366.a1oar!. sl':lirt
:
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IPA lI Firarcing Agre--meBt Atrnual Prograomes Ariex il Generai Co'ci''rolls ir -Cpd lC20)
Clar,rse 2(3)(b) of Annex A to the Framework Agreemert which will hold ar least the rnformation for
th" .ont ""t"
*urrug.d under the Programme indicated in Annex v
(5) Cost recognised in the accounting system maintained uader tlre section 4 of this Arricle mlrst have
been incurred. paid and accepted Inj correspond to actual costs proven bY supporting doc\rments and
shall be used *'hen appropnate to clear pre-finaacing paid by '&e IPA lI beneficiary under local
contracts-
(6) The IPA II beneficiary shall provide to the Commission reports as follows:
(a) Cut-off report - as set out in Article l4(4);
&i **f ."po* as set out in paragaPhs (2) to (4) of Article 14:
1"j n"quest fo. firnds reports as reierred to in Anicle 5
Article 5 - Provisiotrs otr pal.ments made by the CoEmission to the IPA II beneliciary
(l) The IPA tl beneficiary shall submit its initial disbursement forecast for th'e Programme' Prepared
" ,*r"-ia oaicle 4(2i, with the first pre-financing payment request The first pre-finaacing payment
shall be for 100 % ofthe forecast iiruira"r"."o fot itri first year ofthe disbursement forecast plan'
(2) The IPA ll beneficiary sha.ll submit subs€que[t pre-financing payment reouests when the total bank
balance for the Programme fars-U"fo* tt'" disbirrsements forecast for the following five monihs of
the Programme,
/j\ Each reouesr for additional pre-financing shall be supported by following documents:
a) A susunary ofall disbursements made for the Programme:
b) The balk balaoces for the Programlne at the cut-off date of the requ€st'
c) A forecast of drsbu$emeBt for the Progra$roe for the foliowing founeen Eronths at tle cut-
off date ofthe request irr accordance with Annex IV point (d)'
(4) The IPA ll beneficiary rruy request for each- subsequenl pte fiflancing t}te amount of total
disbursements forecasr lor tr," io-ri-*, months followiug the iut-off date of the request, less lhe
balances referred to in s".to' :1U1 oftlis Article at tbe cuioffdare ofthe request for frrnds increased
ir'*,""-J fr"uea by the'ii'e II beneficiary under paragraph 5 of rhis Article and not yet
reimbused-
The Commission reserv-es the right to rcduce each subseque t pre-financing payment if te toal batrk
balances hetd by the IPA II bJneficiary under this Prograrnme.and on all otier IPA I or IPA II
;;;;-", mJnaged by the IPA Il beneficiary "*t"tdt th" disbr'rsement forecast for the next
fourteen Eonths.
(5) Where the payment is reduced under paragraph 4 ol this Article' the IPA II betreficiary must fund the
Programme fiom is o\Lt teso"tc"t 'ip to"ti'" amount of the reduction' The IPA II beneficiary may
then rcquest the rei-u*a"*"ni oi-titi.lt n"'a;g ^ part of the next request for tnds as specified in
paragraPh 4 ofthis Article-
(6) The Commission shatl have the right to recover excessiv-e bank balances which have reroained
unused for more than *"rrr" ,norrirr?- g"rore exercising this right, tie commission :nr,, l1:t:..tl:IPAII beneficiary to give reasons for the delay in disbursiog the fim& and demonstrate a contrnurng
need for them ;thin tte rext follov'/ing two montlls-
(7) lnterest generated by the bank accounts used for this Programme shall not be due to the Cornmrssron-
(r) ao,,o** Anicle 33(4) of the Framework AgreemenL if inlemrnrion of time limir for payment
reouest exceeds two mooms- tbe IPA II beneficiar'v may request a decrsron by the Comroission on
-il.U"t tt" intemrption of time limit is to be continued
(9) The final finaocial declaration referred to Io Alricle 37(2) of the Framework Agleement shall be
submitted by the NAO no Iarer ri'o]"-ii *o"tirs "n* tr.'" end of operational implementadon period
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Y
IPA II t-ina[ci-og Ag.eemeEi .A:rnual Prog:arranes - -A-rex [t - Gene!-d.l Conciuons (v-,{.pci 202ii)
(l) Withour prejudice to the suspeision or termination ofthis Financing Agreement according to Articlesl8 and 19 respectively, as well as without prejudice to Article 39 of the Framework Agrcement, the
Cornmission may iutemrpt pa).ments partially or fully, if:
(a) the Comnission has establishd or has serious concerns that the IPA ll beueficiary has
co[unitted substaotial errors, irregulaities or fraud questoniag the legatity or regulariry of the
rmderlying particular transactions in the implementation of the Programme. or has failed tocomply with its obligations under this Financing Agreement, includirg obligations regarding tieimplemertation of the Visibility and Communication plan,
ft) the Cornmission has established tbat or has serious concerns, whe&er the IPA II beqeficiary has
committed systemic or recurrant errors, irregularities, fraud or breach ofobligations under this orother Financing Agreements, provided that those errors, irregutarities, fraud or breach ofobligatioos have a marerial impact oD the implementation on this Financing Agreement or callinto question the reliability of the IPA Il beneficiary's intemal conrol systcm or the legality aud
regula.rity of the urderlying expeuditure.
Article 7 - Recovery of funds
(l) In addition to cases referred to in Article 4l of the Framework Agreement, the Commission may
recover the funds from the IPA II beneficiary as provrded in the Finaocial Regulation, in particular in
case of:
(a) the Commissiou established tlat objectives of the Prograome set out in ADnex I are not
achieved;
(b) non eligibte expenditure;
(c) non respect oftbe contribution rate, as provided in Antrex I;(d) expenditure incurred as a result of errors, irregularities, fraud or breach of obtgations in the
implementation ofthe Programme, in particular in the procurement and grant award procedure-
(2) In accordance with national law, the IPA II beneficiary shatl .ecover the lJnion contribution paid to
the IPA II beneficiary from recipients who werc in any sihration defined in paragraph I Points b) or
d) of this Aiticle or reGrred to in Article 4l .of the Fraracwork Agreement. Tbe fact that the IPA Ilbeneficiary does uot succeed in recovering all or part ofthe fimds shall not prevent the Comrnission
from recovering the funds from the IPA II beneficiary.
(3) Amormts uDduly paid or rccovercd by the IPA II treneficiary, amounc ftom finarcial, performance
and pre-financing guarartees lodged on the basis of procurement and grant award procedrnes,
amounts from financial penalties imposed by the IPA U beneficiar-l'on candidales, lenderers,
applicans, contractors or grallt betreficiaies, to the IPA II beneficiary shall be either rc-used for ttre
Programme or reiurned to the Commission-
'l
A1 I"
: : :l :l | ::l:::
Article 6 - Interruption of payments
lP-{ L' Financilg Agt=emear.{ffual Progi'arnrBes - Araex II - General Condrtioos (v' Apnt 2020)
Part [wo: Provisions Applicable to Budget Support
Article 8 -PolicY dialogue
The IPA II beqeSciary and the Commission commit to engage in a regular constructive dialogue at tbe
appropriate level on the implementation ofthis Financing Agreement'
Article 9 - Verification of conditiolrs and disbursement
( I ) The Commission shall verify the conditions for the payment of thc tranches of the budget support
componeot, as idetrtilied in Amex I and Antrex IA-
(2) Vr'here rhe Commission concludes that the conditions for pal'ment are not flIfilled' it shall inform the
IPA Il beneficiary thereof without uldue delay-
(3) Disbursement requesrs submined by the IPA II beneliciary shatl be eligible for EU financing
provided that they are in accordance with the provisions set out in Annex I aud Annex IA ard that
ttrey are submitted during the operational implemeotation phase-
(4)ThelPAllbeneficiaryshallapplyitsnationalforeignexchangeregularionsinanondiscriminatorymanner to all disbursements of the budget support component'
Article l0 - Transparency of budget supPort
The IPA II beaeficiary hereby agrees to lhe publication by the Commissiou, of this Financing
Agreement and alry amendmsnt thereof, including by elecrouic means' and of such basic information
oi,t" Urrago "rppoa
which the Corrnissioo ileerns appropriate. The content of such pubtication shall
be in accordance with the EU laws applicable to the protection ofpersonal &ta'
Article 1l - Recovery ofbudget support
AII or part of the budget supPort disbusements may be recovered by the Commission' with due
respect to the principle of proportionality, if the Commission establishes that payment has besq
vitiated by a serious irregulariry attributable to the IPA tr beneficiary, in particutar if the IPA IIbeneficiary provided unreliable or incorrcct information- or if corruption or 6'aud was involved'
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Part Three: Provisions Applicable to this Financing Agreement
Irrespective of the Management lflode
Articl€ l2 - Execution period, operational implementation period aDd contracting deadtine
(l) The execution period is &e period during which thc Financing AgreeEretrt is impternented andincludes the operational implemenration period as well as a closure phase- The duration of theexecutiou period is stipulated in Article 2(l) of the Spcial Conditions, and it shall starr on the entryinto force of this Financing Agreemenr.
(2) The operational irnplemenratiou period is the period in which all operational activities covered byprocursment grint conaacB and contribution agreements are completed The duration of this period.is stipulatcd in Article 2(2) of the Special Conditions, and it sball start on the entry into force of thisFiaancing Agreement
(3) The execution and operational implementation periods shall be respected by the ContractingAuthority when concluding and implementing procue,,cn! grant contacts a,,d conaibutionagreements u,ithin this FinanciDg Agreement.
(4) Costs related to the activities shall be eligible for EU finaocing only if they have been incurrcd duringthe operational implementation perio4 the costs incurred by the IpA II beneficiary before the entryinto force ofthe Finaacing Ageement shall not be ctigible for EU financing.
(5) The procurement, glant contracts and cooaibution agreements shall be concluded at the latest rvithinthree years ofthe entqr futo force ofthe Financiug Agreement, excepr:
(a) amsndments to procursment contracts, grant contracts and contibution agreemeats alreadyconcludo{
(b) individual procurement conFacts to b€ concluded after early termination of an existingprocurement cootracq
(c) couFacs relatirg to audit and evaluation, which can be signed after opo-ational implementation;(d) change of the entity charged with entrusted tasks-
(6) A procurernent, grant cort-act or contribution agreanent which has not given rise to any paymentwithin rwo ycars of its signature shall be automatically t€rminated ancl is fimding shall be de-committe4 except in case of litigation beforc judicial courts or arbitral bodies-
Article 13 - Permits atrd authorisation
Any type of permit and,/or authorisation required for tle implementation of the programme shall beprovided in due time by the competent authorities of the IPA II beneficiary, in accordance with oationallaw.
Article 14 - Reporting requirements
(l) For the purprose ofthe general r€poning requirements to the Commission set out in Arricle 58 oftheFramework Agreemeat and the specific reponiog requirements under indilect managemeot set out inArticies 59(l) of the Framework Agreement on the amual report on the implerneotation of IPA IIassistance, the NIPACs shall us€ the templatc provided for in Annex Itr to this Financing Agre€mcut.
(2) For the prrpose of the specific reponing requirements under indirect managernerr set out in point (a)
9
iIA-\
IP,\ U Finalciag Ag.eeEeni Aroual programr..s - .A.nnex I[ - Geoqai Condirioas (v- Apnl2020)
of -Article 59(2) of the I ramework Agreemeot on lhe annual financia] report or statements' the NAO
in rhe IpA II beneficiatr shall use the templates provided for in points (a) and (b) ofAnnex rv to this
Financing Agreemeut-
(3) For the purpose of Article 59(4) of rhe Framework Agreement' the NIPAC shall sub&it a final report
on the implementation of lPA II assistance of this Programm€ to tie Commission no later than four
mooths after the last disbursemetrt to its contractors or grant bene{iciaries'
(4) For the purpose of Article 59(6) ofthe Framework Agreement the NAO shall provide by 15 January
of the foliowing financiat year in electlotric format a copy of the data held in the accounting system
established under Article 4(4)- This should be supported by a sigred un-audited summary financial
report io accordance lvith point (c) of Aonex IV-
Article l5 - Intell€ctual property rEhts
(l) Corlracts financed under this Financing Agreement shall ensure that the IPA lI treneficiary acquire all
necessary intellectuai property righrs with regard to information techlology, studies, drawings, plais,
publicity and any other material made for plarming, implementation' monitoring and evaluation
purposes.
(2) The IPA II beneficiary shall guarantee that thc Commission' or anybody or person authorised by the
Commissioo, shall have access aud the riglrt to use such a loaterial- The Commission will only use
I?-t lI FinaBcicg Agr*Rent Aofllai Programmes Arurex Il _ Geoerar Conditions (v' April 2020)
such material for its own pu.poses-
Article l6 - Corsultation betw€e! the IPA II beneficiary and the Commission
(1)ThetPAllbeneficiaryandtheCommissionshallconsulteachotherbeforetakingaoydisputerelating to the implementatiotr or interpretation of this Finaacing Agreement fi{ther pulsua]lt to
Aticle 20.
(2) Where the Commission becomes aware of problems in carrying out procedures relating to the
implementation of this Firnnciug Agreeoent, it shall €stablish all uecessary contacts with the IPA II
beneficiary to rernedy the situation and take axy stsPs that are necessary-
(3) The consultation may lead to an amendment, suspension or termination ofthis Financing Agreemeat'
(4) The Commissiou shall regularly inform the IPA II beneficiary of ttre implementation of activities
described in Armex t which do not fall rmder Part One ofthese General Conditions-
Article 17 - Arnendme[t ofthis Financing Agreement
(l) Any amendment of this Fbancing Agreement shall be made in writing' including an exchange of
leiters.
(2) If the IPA II treneiictary requests an amendment, the request shatl be submitted to the Commissron at
least six months before the amendme is intended to entcr into force'
(3) The Commission can amend the Model Docurnents in Annex In' IV and V witlout this necessitatirg
an amendment to tbis Finarxcrlg Agreemenl The IPA II beneficiaries shalt be informed in wntbg
about any such amendmetrt and its entry into force'
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10
Articlc l8 - Suspension of rhis FinaaciDg AgreemeDt
(1) The Finaacing Agreemeot may b. suspended in &e following cases:
(a) The commission may suspend the imprementation of this Financing Agreement if the IpA nbeneficiar], brcaches aa obligacon rmder this Financing Agreemeot;
(b) The commissio, may suspenc tre implementation of this rinancing Agreemenr if the ipA trbeneficiary breaches arry obligation set under the procedures and standaid documents referred to inArticle t 8(2) ofthe Framework Agreement;
(c) The commission reay suspend the implemeutation of this Financing Agreement if the IpA IIbeneficiaq, does not meet requiremsnts for enkusting budget implementatron tasks;
(d) The commission may suspend the implementation of this Financing Agreemenr if the rpA IIbeoeficiar_-v decides to sixpend or cease the EU Membership accession process;
(e) The Corarnission may suspend this Financing Agreercent if the IpA Ir beueficiary breaches aaobligation relating to req)ecr for human rights- democratic principles a.d the rule of law and inserious cases of comrption or il the IPA II beneficiary is guilty of grave professional miscond.uctproven by anv justifred means. Gmve professional misconduct is to be wrderstood as aay of thefoilowing:
' a violation of applicable laws or regulations or ethical standards of the profession to which aperson or entity belongs, or
' any wrongfirl conduct of a person or entity which has an impact on its professional credibilitywhere such conduct denotes *roagfi intent or gross negligence.
(f) This Financing Agreement may be suspended in cases of force majeu.e, as defined below. "Forcemajeure" shall mean any unforeseeable and exceptional situation or event boyond the parties' cotrkolwhich prevents either of rbem from fulfilling any of their obligations, not attributable to eror ornegligence on their part (or the part of their contractoB, agEnts or employees) and provesinsurmountable in spite of all due diligence, Defects in equipment or material or delays in makingthem available, labour disputes, strikes or financial ditficulties cannot be invoked as force majeure. Apartv shall oot be held in breach of its obligadons if it is prevented fiom folfilling thern by a case offorce majei:re of which the othsr palty is duly informed- A party faced with force majeure shallinform t}te other party without delay, stating the ruture, probable duation and foreseeable efFects ofthe problem, and take aay measure to mioimise possible drm,ge_ If force majewe impacts only partofthe Programme, the suspension ofthe Financing Agreement can be partial;
(g) Neither of the Parties shall be held liable for breach of its obligations under this Financing Agreementif it is prevenred from fulfilling them by force majeure, provided it takes measwes to minimise anypossible damage-
{2) The Commission may suspend this Finaucing Agreement without prior notice,
(3) The Commission may take any appropriate precautionary measure before suspension rakes place,
(4) Wbeo tle suspeosion is uotified the consequences for the on-going or to be signed procurement,grant contracts, and corltnbution agreements shall be indicated-
(5) A suspensioa of rhis Fiaancing Agreemenr is without prejudice to the interruption of payments andiermilation of this Fi.ancing Agreemetrt by the Commission rr accordance with Article 6 and Articlet9,
iPA II Fira".ing -lg:ermeii 3:,1irel Progam,ales - Ar,-nex II - General Condii:ons (v- Apni 2020)
l'\ rIII
(6) The parties shall resume tle impiementation of the Financing Agreement once thd conditiors allow
with the prior writtea approval of the Commission- This is wiriout prejudice to any ameudments of
this Finaacing Agreement which may be necessanr ro adapt the Progra$ne to the new implementing
conditions, ir:ctuding, if possible, the extension of rie operational implementation and execution
periods, or the termination of this Financing Agreernent in accordance with Article l9-
Article 19 - Termination ofthis Fitrancing Agreemetrt
(1) If the issues which led to the suspension ofthis Finaacing Agreement have not been resolved wtthio a
maximurn period of 180 days' either party may termitrate t}te Finaucing Agleemeut at l0 tlays'
notice.
(2) When the termination is notified. ilte consequences for the oo-going procurement and gratrt contracts'
conkibution agreemetrts and such contracts or grants, and contdbutio[ agreements to be signed shall
be indicated.
(l) The tsrmination of *ris Financing Agreemsnt shall not prcctude the possibility ofthe Comnission to
make financial corrections in accordance with Articles 36 to 44 of rhe Framework Agreement-
Article 20 - Dispute settlement arrangemeDts
(1) Any dispute conceming the Financing A-ereement which cannot be settled u/itiin a six-month period
by the cousultations betweetr the parties provided for io Article 16 may be settled by arbitration at
one ofthe patties' requesl
(2) Each party shall designate au arbitrator within 30 days of the request for arbiFation' Farling tbat'
either party may ask the Secraary-General of the Permanent Court of Arbikalion (The Hague) to
designateasecondarbit-ator.Thetwoarbit.atoEshallinthelrtumdesignatealhirda$itrato.within30 days. Failing tha! either party Inay ask the Secretary-General of the Permaneut CorrIt of
Arbit-ation to designate th€ third arbitraror-
(3) Unless the arbitrators decide otierwise, the procedure laid down in the Permanent Court of
Arbitation Optional Rutes fo. Arbitration Ilvolving International Organisations and States shall
apply- The aditrators' decisions shall be taken by a majoriry within a penod oftlrree months-
(a) Each party shall be bound to '.ake the measures necessar]' for the applicatioo of ttre arbit'ators'
decisioll.
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IPA ll Fiil3ocitrg Agreement A1Euai Pro!.iarenes - '{ni* II - G<nerc'l Co*irtrons (w -\Dn! 2020)
Annex lll Model Annual Report
Penod covered by the rqDort:
0 I I 01 !20Xj{,-3 I / t2;20XX
Report issued on XX[XX/2O)C(
Annual Report on the implementation of IPA Il assistance under direct and indirectmanagement by lcountryl submitted by the National IpA Coordinator
I. Executive Summary
1- Reference to the objectives ofthe Country Strategy Papers and a brief overview ofchallenges in the sectors
2. Involvernent in programming3. Relations with the European Commission.4- Problems encountered in meeting the required conditions for impiernentation and in
ensuring sustainability, relatd measures taker/planned, recommendations for fi[theraction.
5. Relevant issues sternming &om the IPA II beneficiary's participation in the IPAmonitoring committee and in sectoral monitoring committees (including JointMonitoring Commiftee for CBC), if any.
6- Involvement in Multi-county actions and any related issues-7. Momtoring and evaluation activities, main lessons learned & follow-up to
recommendations.
8. Commrmication and visibility activities.9- Donor coordination.
In cose ofindirect ma.nagement the executtve summary should also cover:
1 0, Overall implernentation of IPA assistance rmder indirect management (m:rx- onepage).
11. Main horizontal problems encountered in the implementation of IPA assistance and
subsequent measures taken/planned (max. half page),
12- Recommendations for further actions (max. half page).
13. Audits - main findings and recommendations and corrective actions taken
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Alrnex lll vlodel Annual RePort
tl- lnformation Per Secior
Sector titlel: fTransPort]
Narrative incl rhe fo
1As per the sectors in the indicative Strategy Papers'
? For cross-border cooperation specific reponing is required
on
1- Involvement in Pmgrarnmmg
2.overviewofresultsinmovingtowartlsafirlly-fledgedsectorapproach(i-e.targetsreached as per sector roadmap in the Sector planning docurnent)'
3. Coordination with other instruments an&or tlonors/ IFI's within the sector
4. The impact of IPA tl actions withinthe sector on the.development of th3 rel.evant
national administrative capacity in the sector, strategic plarming and budgeting
[Jnder indirect management the following information should also be included:
5- Operating structure(s) rn piace anil related changes' ifr elevarrl: lMinistry of
TransPortl
6. Information on the implernentation of prograrnmes in the sector
7- Main achievernents in the sector
8. Any sigrrificant problerns encountered rn implementing the tasks entrusted e'g' delals-
i" tti.o*g aid subsequent measures taken/plarmed'
9- Recommendations fol further actions
10. Implemented monitodng and evaluation activities' audits - main findings & lessons
leame4 recommendlations, follow-up and corrective action taken
Sector title: C ross-Border Cooperation2
l - Involvement in programming as appropriate-
2. Progress made in implernenting the CBC programme and in particular in achieving the
specific objectives per thernatic priority (including qualitative and quantitative
elements indicating progress in reiatiotr to targets)
3. A summary of problerns encountered in implementing the CBC programme and any
corrective actions takerl" as well as recommendations for further corrective actions'
't\ss
Annex lll Model Annual Report
Monitoring, including dara collection arrangernents and where applicable evaluationactivitles.
5. Communication and visibility actirities.
6. Coordination with the parher country.
Under indirect management the following information should ako be included:
l. Operating structure in place and related changes, ifrelevant.
4
2. Any significant problems encormtered in implementing the tasks eokusted e.g. delaysin contracting and subsequent measures taken/planned.
3. Recommendatiohs for further actions
4. lmplemented audis - main findings & recommendations and corrective action taken
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Annex lll N4ode! Annual RePort
II a, Pcrformancc indicators in thc le.g. 'l'ttutsprtrtl sector covcl'iug both direct and irrdircct m8n0gclncnt:
Indicatorsl pct' Progratrlme'l'argct (2020) Vnluc (2014s)llasclincIndicntor for scctor
l'I'runsportl
Milcstonc (2017)Sorrrcc
Reduction of average
travel lime ofpdsscngers hetueeen
major urban cenlres
by lransporl mode
2014 country
ploSramme
Reduced
lranspo qlion costs
per unil of oulPut
2014-20xx multiannual
Programme
3 These should be mostly outcome, as well as selected relevant output indicators
4 lt has to be consistent wlth the way of programmlng {annual, multi-annual with or wlthout spllt commltments) and with the NAo report
5 Number of columns to be adjusted f;r ;tt ylears rrom )ott up to the year of the reportlng perlod. values should be cumulative'
<* 4t
l.innncingAgrecnrentll'ro gramme
refercncei
I
I
Annex lll lvlodel Annual Report
II b. Ovcrvic,v Bt thc action lcvcl lilr scctor [a.g. Tt,a,$pott]
l,'inuncingAgrcerncnt/Progrnmnrcrc fc rcn ce
ll Ststc ofplIy/Progrcss lorpartlcular nction(c.g, 'foll inprepnrntion,
tender lBunchcd,contractcd, underimptcmcnte tion,completcd)
Main achiu,cnr cn(sInd thcirIssossment
Significnntproblents
encountercd inimplemcnting thcentrustcd tasks
and the measurcs
takerr/planned toovercomc them
I)cvcloprnrrrls thn linllrrcnccinrJrlcmcntution fort h(l lillu l c
ll cconl nrcll(lrt li(lIsfor corrcctivolhrthcr nctiorrs
e.g. change of locallaw, like alignnentwith and
implenrcntalion olthe fourth Railwaypackoge
12014 counlryprogramuel
Eleckilication of therailway linefromxxt. to bot'der withxna
e,g. Senice conlract
tbr preparation olToRfor the workrcontracl signed ancl
uncler
implementdtion,
tenclerJbr works
conlrqct lo be
launched in the
,second quarler of2015
e.g. The seruicecontractfor lhepreparalion oIToR
tbr lhe worktconlract was
delayed as the
negolialedprocedure lailedantl hacl to be re-
launched
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(Jntier indirect management rhe following annexes should also be proided:
Annex 1
Overview ofthe functioning of rhe managemear and control systems (including changes in the
institutional skucnre) (max' one page)'
Transparency, visibility, information and cornmunication activities in line with FWA (max'
one page)
Annex 2
"..-"".r. .tori.. (N,B- tlis section may be used for &e annual financial assistance report
prepared by the European Commission)
Annex 3
Amual procureme,lt Plan
For both direct and indirect nnnagement, the following annex should be provided:
Annex 4
3If.-upp.o."h .oadmap _ achievernents (higblighting whether planned targets have been
firlfilled or not)
Itl.rt )
