TOR for Short Term Consultancy Assignment

Project: Good Local Governance Programme South Caucasus PN: 16.2174.7-010.00 Activity: Support to elaboration of 2018 program budgets in the 18 established cluster municipalities of Period: 04.2017-02.2018

1. Background The Good Local Governance Programme South Caucasus advises and supports respective partner organizations at national, regional (sub-national) and local levels in Armenia, and in the implementation of cooperation initiatives towards improved local governance. It supports the improvement of frame conditions, addresses regional (sub- national) governance issues and works towards the improvement of municipal services and citizens’ participation at municipal level. In the context of the German international cooperation approach, the Programme’s objectives are oriented within the framework of the Caucasus Initiative; thus the improved professional exchange among the countries of the South Caucasus and their increasing cooperation are also objectives at regional South Caucasus level. In June 2016 the National Assembly has adopted Laws on establishment of 15 clusters with the elections appointed on September 8 and October 2[1]. The large-scale territorial and administrative reform in the country imposes systemic and structured approach to enhancing socio-economic development perspectives of the municipalities in the framework of national and sector strategies. Local capacities are in the core of the technical assistance provided to the LSGs by international and donor agencies with the objective to prepare municipalities to act effectively and efficiently in the new circumstances.

2. Current situation In 2014 in ten municipalities of Armenia program budgeting (PB) approach was tested through trainings and consultancies. The experience gained during I phase PB trainings delivered in the first 10 pilot municipalities (Annex 2, Column C) were very productive and based on the findings, lessons learned, existing experience and gained knowledge the Program Budgeting Methodology for local level budgeting was developed. Outputs of the project’s I phase were 2015 program budgets for 10 municipalities. In 2015-2016, additional 27 new municipalities and 3 newly established enlarged municipalities (Annex 2, Column D, F) were included in the project. Through ongoing consultancy and trainings Program Budgets for 27 municipalities (Annex 2, Column E) were designed using the PB Methodology, as well as the non-financial indicators database, which was developed to assist the municipalities in PB development processes. Brief Budgets also were developed and used during public hearings in pilot municipalities. The target group of the proposed assignment includes representatives from current administrations, representative authorities, civic actions groups, non-government sector units and other stakeholders in the 18 new clusters: , Tumanyan and , Urtsadzor, Amasia, , Arpi, , , , , , Vayq, , ,

[1] The list of clusters, constituent municipalities (settlements) and election dates are set out in the Annex 1 to this TOR. 1

TOR for Short Term Consultancy Assignment

Noyemberyan and Koghb, (Annex 2, Column F). Currently being the centre for clusters , Zaritap, Vayq and Urtsadzor municipalities in 2015 before the enlargement have designed their 2016 program budgets as single municipalities. Additionally in 2016 Dilijan, Tumanyan, Tatev and Jermuk cluster municipalities have designed their 2017 Program Budgets. List of clusters and settlements is attached in Annex 1. An important element to secure successful implementation of this assignment will be the continuous support of the MTAD, including both preparatory arrangements (agreements with the marzpetarans, mayors, community councils and other major stakeholders) and participation in the activities set out in the subsequent sections of this TOR.

3. Objectives, Deliverables and Methodology Overall, the assignment aims to enhance capacities of the 18 partner enlarged municipalities to apply the Program Budget Methodology by topical trainings and consultancies to the administrative staff and council members. The objectives of the assignment include but are not limited to: 1) Develop training modules based on the revised Methodology for Program Budgeting; 2) Develop a training concept taking into consideration the possibility of grouping clusters for trainings as well as the different levels of knowledge, experience and expertise of the targeted municipalities and staff; 3) Conduct 2-day trainings on Program Budgeting for clusters as per the training concept; 4) Assist the 18 cluster administration in preparation of 2018 Program budgets; 5) Assist in design of brief budgets for their Program Budgets 2018 of the 18 clusters, 6) Assist in conducting public hearings in each 18 clusters; 7) Provide further methodological support (if necessary); 8) Present to GIZ a final report on overall assignment implementation, incl. activities implemented, experience, lessons learned and recommendations on all aspects of the project. The structure of the report is to be agreed upon with the GIZ programme.

The deliverables expected on implementation of the Assignment will include: a) Overall work plan for the implementation of the mission; b) Concept on training of 18 cluster municipalities as per objective 2; c) Report on training satisfaction feedback (provided by the GIZ programme) of participants incl. disaggregation by gender and cluster, as per objective 3; d) 18 Draft Program Budgets before the public hearings; e) 18 Brief Budgets for the public hearing; f) 18 Public Hearings conducted; g) 18 Final Program Budgets after the public hearing; h) Final summary report as per objective 8.

4. Reporting The experts will directly report to GIZ LoGoPro on the progress and completion of the tasks.

5. Level of efforts The total level of efforts for this assignment is up to 115 expert days.

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TOR for Short Term Consultancy Assignment

Tasks Expert days 1. Develop training modules based on the reviewed Methodology for 2 Program Budgeting 2. Develop a training concept taking into consideration the possibility of grouping clusters for trainings as well as the different levels of 3 knowledge, experience and expertise of the targeted municipalities and staff; 3. Conduct 2-day trainings on Program Budgeting for clusters as per 30 the training concept 4. Assist the 18 cluster administration in preparation of 2018 Program 36 budgets 5. Assist in design of brief budgets for their Program Budgets 2018 of 18 the 18 clusters 6. Assist in conducting public hearings in each 18 clusters 18 7. Provide further methodological support (if necessary); 5 8. Present to GIZ and MTAD a final report on overall assignment implementation, incl. activities implemented, experience, lessons 3 learned and recommendations on all aspects of the project. The structure of the report is to be agreed upon with the GIZ programme Total 115

6. Schedule The assignment is planned to commence in April 2017 and finish by end of February 2018. The exact commencement date and schedule of activities/work plan will be agreed at a later stage.

7. Selection Criteria 1) Demonstrated knowledge of financial management in local government system in Armenia; 2) Demonstrated experience of working in LSG sector; 3) Demonstrated knowledge and practical experience in methods of local planning, budgeting and M&E; 4) Demonstrated knowledge and experience of trainings in local financial management and accounting procedures; 5) Proven experience in cooperating with international and donor organisations in the country and the region. 6) Proven existence of experienced and knowledgeable staff to accomplish the tasks and assignments.

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TOR for Short Term Consultancy Assignment

Annex 1. 18 Enlarged Municipalities

Populati Clusters, with on Centre of Previous No. Region/ Marz Election Settlements as of the Cluster Municipalities Dates 01.01.20 16 Tumanyan Tumanyan 1896 Karinj Karinj 664 Marts Marts 483 1 Lori Tumanyan Tumanyan Atan Atan 254 Ahnidzor Ahnidzor 211 Lorut Lorut 887 Shamut Shamut 303 Sub-Total 7 7 4698 Dilijan Dilijan 18675 Haghartsin Haghartsin 4039 Teghut Teghut 1583 2 Dilijan Dilijan Gosh Gosh 1137 Hovk 432 Khachardzan 367 Aghavnavank 344 Sub-Total 7 7 26577 Shinuhayr 2584 Harzhis Harzhis 784 Khot Khot 936 3 Syuniq Tatev Shinuhayr Halidzor 600 Tatev Tatev 842 Svarants 289 Tandzatap 85 Kashuni Kashuni 20 Sub-Total 8 8 6140 Urtsadzor, 1. Urtsadzor 1. Urtsadzor 3127 4 Ararat (18 Sept. Urtsadzor 2. Lanjanist 2. Lanjanist 157 2016) 3. Shaghap 3. Shaghap 913 Sub-Total 3 3 4,197 4. Amasia 4. Amasia 1963 5. 5. 516 Aregnadem 6. 6. Bandivan 284 Amasia 7. 7. Byurakn 830 5 Shirak (2 October Amasia 8. 8. Gtashen 479 2016) 9. Kamkhut 10. 9. Hovtun 190 11. 10. Meghrashat 376 12. Voghji 11. Voghji 539 13. 12. Jradzor 351 Sub-Total 10 9 5,528 Ashotsk 14. Ashotsk 13. Ashotsk 2903 6 Shirak Ashotsk (2 October 15. 14. Bavra 635 4

TOR for Short Term Consultancy Assignment

2016) 16. 15. 562 Zuygaghbyur 17. 16. Tavshut 389 18. 17. Karmravan 245 19. 18. Krasar 529 20. 19. Ghazanchi 624 21. Mets 20. Mets 914 Sepasar Sepasar 22. 21. Saragyugh 253 23. 22. Sizavet 391 24. Poqr 23. Poqr 260 Sepasar Sepasar Sub-Total 11 11 7,705 25. 24. Berdashen 370 26. 27. Alvar 25. Alvar 279 28. 29. 26. Aghvorik 146 30. 27. Ardenis 207 Arpi 31. 28. Garnarich 321 7 Shirak (2 October Berdashen 32. Yeghnajur 2016) 33. 29. Zarishat 74 34. Yerizak 35. 30. Zorakert 216 36. 37. 31. Tsaghkut 247 38. Lorasar 39. 32. Shaghik 112 Sub-Total 15 9 1,972 40. 33. Torosgyugh 372 41. 34. Arpeni 376 42. Bashgyugh 35. Bashgyugh 63 43. 36. Goghovit 394 44. Lernagyugh 37. Lernagyugh 23 45. Kakavasar 38. Kakavasar 133 46. Hartashen 39. Hartashen 133 Sarapat 47. 40. Hoghmik 471 8 Shirak (2 October Torosgyugh 48. 41. Dzorashen 192 2016) 49. Musayelyan 42. Musayelyan 405 50. Salut 43. Salut 93 51. Sarapat 44. Sarapat 117 52. 45. 125 Vardaghbyur Vardaghbyur 53. 46. 578 Tsoghamarg 54. Poqr Sariar 47. Poqr Sariar 239 Sub-Total 15 15 3,714 55. Goris 48. Goris 21302 56. Akner 49. Akner 1103 Goris 57. 50. Bardzravan 136 9 (18 Sept. Goris 2021 2016) 58. 51. Khndzoresk 59. Hartashen 52. Hartashen 687 60. Nerqin 53. Nerqin 260 5

TOR for Short Term Consultancy Assignment

Khndzoresk Khndzoresk 61. 62. Albullagh 54. Shurnukh 151 63. Dzorak 64. Vanand 65. 55. Vorotan 286 66. 56. Verishen 2109 67. Kharahunj 57. Kharahunj 1368 Sub-Total 13 10 29,423 68. Meghri 58. Meghri 4655 69. Agarak 59. Agarak 4742 70. 60. Alvank 289 71. 61. Gudemnis 36 72. 62. Lehvaz 629 73. Lichk 63. Lichk 270 Meghri 74. 64. Karchevan 270 10 Syunik (18 Sept. Meghri 75. Kuris 65. Kuris 52 2016) 76. 66. Nrnadzor 153 77. 67. Shvanidzor 336 78. 68. Vahravar 35 79. 80. 69. Vardanidzor 266 81. Tkhkut 82. 70. Tashtun 116 Sub-Total 15 13 11,849 83. Gorayk 71. Gorayk 517 Gorayk 84. 72. Tsghuk 386 11 Syunik (18 Sept. Gorayk 85. 73. Sarnakunk 517 2016) 86. Spandaryan 74. Spandaryan 452 Sub-Total 4 4 1,872 87. Tegh 75. Tegh 2259 88. 76. Aravus 169 Tegh 89. 77. Khnatsakh 852 12 Syunik (18 Sept. Tegh 90. 78. Khoznavar 374 2016) 91. 79. Kornidzor 1102 92. Vaghatur 80. Vaghatur 404 93. Kharashen 81. Kharashen 536 Sub-Total 7 7 5,696 94. 82. Vayk 6722 95. 83. Azatek 589 Vayk 96. Arin 84. Arin 337 13 Vayots Dzor (2 October Vayk 173 2016) 97. Zedea 85. Zedea 98. Horadis[i] 99. Por 86. Por 145 Sub-Total 6 5 7,966 100.Jermuk 87. Jermuk 7647 101.Kechut Jermuk 102. 88. Gndevaz 822 14 Vayots Dzor (2 October Jermuk 89. 2016) 237 103.Karmrashen Karmrashen 104. 90. Herher 728 Sub-Total 5 4 9,434

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TOR for Short Term Consultancy Assignment

105.Zaritap 91. Zaritap 1416 106. 92. Artavan 328 107.Saravan 93. Saravan 310 108. 109.Khndzorut 94. Khndzorut 501 Zaritap 110.Nor 95. Nor 159 15 Vayots Dzor (2 October Zaritap Aznaberd Aznaberd 2016) 111. 96. Bardzruni 397 112.Sers 97. Sers 206 113.Martiros 98. Martiros 621 114. 115.Akhta 99. Gomk 254 116. Sub-Total 12 9 4,192 117.Noyemberya 100.Noyemberya 6042 n n 118. 101.Baghanis 917 119.Barekamava 102.Barekamava 483 Noyemberyan n n Noyembery 16 Tavush (18 Sept. 120. 103.Dovegh 618 an 2016) 121.Koti 104.Koti 2194 122. 105.Voskepar 937 123. 106.Voskevan 1431 124. 107.Jujevan 595 125.Berdavan 108.Berdavan 3556 Sub-Total 9 9 16,773 126.Ayrum 109.Ayrum 2608 127.Archis 110.Archis 1326 128. 111.Bagratashen 3087 Ayrum 129.Debedavan 112.Debedavan 789 17 Tavush (18 Sept. Ayrum 130.Deghdzavan 113.Deghdzavan 410 2016) 131. 114.Lchkadzor 422 132.Haghtanak 115.Haghtanak 1519 133.Ptghvan 116. 931 Sub-Total 8 8 11,092 Koghb 134.Koghb 117.Koghb 4888 18 Tavush (18 Sept. Koghb 1080 2016) 135. 118.Zorakan Sub-Total 2 2 5,968 TOTAL 157 140 164,796

[i] This settlement was part of previous municipality of Zaritap

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TOR for Short Term Consultancy Assignment

Annex 2. List of Municipalities involved in 2015-2017 ROB Activities 18 Clusters 2015 2016 Marz Municipality 2017 ROB (3 old +15 I phase II Phase new) A B C D E F 1 Aragatsotn 1 1 1 2 Aragatsotn Sasunik 2 2 3 Aragatsotn Oshakan 3 3 5 Ararat Masis 2 6 Ararat 3 4 4 7 Ararat Urtsadzor 5 8 Ararat Vosketap 6 10 Armavir Paraqar 7 5 11 Gegarkuniq 4 8 6 12 Gegarkuniq Vardenik 9 7 13 Gegarkuniq 10 8 14 Gegarkuniq Sevan 11 9 15 Lori Tumanyan 5 1 cluster Old 16 Lori Alaverdi 12 10 17 Lori 13 18 Lori Odzun 14 11 19 Kotayq Egvard 6 15 20 Kotayq Byuregavan 16 12 21 Kotayq 17 13 22 Kotayq Jrvej 18 14 23 Kotayq Nor Yerznka 19 15 24 Kotayq Garni 20 16 25 Kotayq Qasakh 21 17 26 Shirak 7 22 18 27 Shirak 23 28 Shirak Sarnagbyur 24 19 Sarnagbyur1 29 Shirak 25 20 30 Shirak Amasia 31 Shirak Ashotsk Ashotsk 32 Shirak Arpi

1 Sarnagbyur is included in Ashotsk cluster 8

TOR for Short Term Consultancy Assignment

33 Shirak Sarapat 34 Syuniq 8 26 21 35 Syuniq Qajaran 27 22 36 Syuniq Megri 37 Syuniq Goris 38 Syuniq Tegh 39 Syuniq Gorayq 40 Syuniq Tatev 2 cluster Old 41 Vayots Dzor Vayq 9 28 42 Vayots Dzor Jermuk 29 3 cluster New 43 Vayots Dzor Egegnadzor 30 23 44 Vayots Dzor Zaritap 31 45 Tavush Dilijan 10 4 cluster Old 46 Tavush 32 47 Tavush 33 Noyemberya 48 Tavush 34 n 49 Tavush Koghb 50 Tavush Ayrum Total 10 34 27 2 18

2 23 single + 4 cluster municipalities 9