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1 Reporting Agency: UNDP Country: ARMENIA PROGRESS REPORT Reporting Agency: UNDP Country: ARMENIA PROGRESS REPORT No. and title: 00003762 Catalyzing Financial Stability for Armenia’s Protected Areas Systems Reporting period: October 1 to December 31, 2013 I. PURPOSE The overall objective of the project is to secure long‐term financial sustainability of the Armenian PA system. This will be achieved through two components: (1) ensuring sufficiency and predictability of revenue sources for the PA system and (2) raising cost‐effectiveness and capacities of PAs. II. RESULTS Overall The mid‐term evaluation of the project was carried out by the auditor of UNDP/GEF. The financial scorecard was upgraded in the frame of MTR, but still needs to be approved by the Ministry. According to the scorecard we have met our mid‐term target by funding 135% of basic needs and 54% of optimal needs. Preliminary findings were shared by the MTE expert with UNDP, CNF and Ministry. We are waiting for the mid‐term report. For: Activity1. 1.1. Support for Protected Areas CNF provided its funding in two disbursements made during the year. In September/October PAs received second disbursements made according to the plan. The total CNF funds provided per PA, including unspent fund from last year, and actual expenditures of those funds by the PAs are shown in the table below; CNF Funding Actual Expenses December Name of PA Provided*, Thus Spent, % 31st, thus. AMD AMD Khosrov Forest State Reserve 58,967.9 55,090.6 93 Shikahogh State Reserve 43,663 40,786.6 93 Arevik National Park 34,904.6 27,691.5 79 Lake Arpi National Park 14,069.3 12,862.4 91 Arzakan‐Meghradzor Sanctuary 24,381.5 16,668 68 Total 175,986.3 153,099.1 87 *Including unspent funds from 2012 The CNF financial support covered an essential part of the running costs of PAs and made possible to obtain important equipment for future development of the parks. In spite of the fact that all PAs reported satisfactory results, the poor organization and lack of knowledge for effective procurement is one the main obstacles and has to be improved. 1 PAs asked for several amendments in the budgets during the year. Almost all requests approved by CNF. Khosrov Forest received new car, horses, beehives, cameras, recording systems, GPSs etc. In addition, CNF decided to add 3.5 mln AMD to renovate horse stable in Vedi district. The renovation is in the process now. The tragic accident happened in the Reserve which cost the life of the Ranger in Garni district. CNF supported the family of the killed Ranger. Shikahogh Reserve had delays in procurement, but finally, with the support of the Ministry and CNF, could overcome difficulties. As they couldn’t organize renovation of some infrastructure in time, it was decided to reallocate funds for other purposes; they bought 8 horses, saddles etc. The also obtained a new car plus some important administrative and protection equipment. Arevik NP planned to partly renovate administrative building in Nrnadzor. It was agreed to add some more funds next year and completely restore it. “Adaptation to Climate Change Impacts in Mountain Forest Ecosystems of Armenia” UNDP-supported GEF-funded project requested CNF to support Arevik NP with additional funds to organize aerial pest control in 500 ha of forests and maintenance of recently reforested 20 ha area. CNF agreed and allocated funds for this joint pilot project. Arzakan – Meghradzor prepared tender documents for preparation of management plan, but will announce it on the beginning of next year. Lake Arpi NP and Arzakan – Meghradzor will continue their grant projects. Some amendments will be needed in both PAs. First of all, it is connected with increase of salaries from state budget. The budget of Lake Arpi has increased about 4 times for 2014. Ministry and PA are going to hire a lot of new staff for the park. Arzakan – Meghradzor is planning to buy a new 4 wheel pick up with firefighting equipment. The final amended budgets will be provided to CNF on January‐ middle of February. 1.2 Development of CNF (Fundraising) CNF has continued its development activities and has held talks with several corporate and other donors regarding potential support in 2013 and 2014. We were successful in securing a major new commitment of €3 million ($4 million) from BMZ to increase financial contribution to the CNF’s permanent endowment capital. HSBC bank Armenia is still the only corporate donor for Armenia. With their transfer of $ 10 000 Khosrov Forest State Reserve bought horses, saddles and beehives. Donations from corporate and individual donors were also received from September’s donor trip to Armenia and Georgia. For: Activity 2. 2.1. Technical and financial audits. The technical audit team started visits to PAs. It is planned to receive reports in the middle of February of 2014. Financial audit will be implemented according to the plan, on the second quarter of the year. As the technical audit recommended full HR audit in the Khosrov Forest State Reserve, CNF signed a contract with KPMG to implement it. KPMG provided the final report on the end of December, which included the analysis of current situation, findings and recommendations, job 2 descriptions of the staff, and, the main result of the work, an updated organogram of it. The report and ToRs were provided to Ministry in January of 2014. 2.2. PA Capacity Building. TJS has organized trainings and provided new accounting software with notebook to PAs. As it was mentioned in previous report, CNF supported Khosrov Forest to hire a specialist to do on the spot training on software and create a data base starting from the beginning of 2013. TJS started monitoring of the task in December. The report will be ready on January‐mid February. Internet banking systems haven’t been installed in PAs yet. TJS will provide the value of its technical assistance in 2013 for the financial report in February 2014. The signing of the Memorandum of Understanding between CNF, WWF Armenia and National Competitiveness Foundation of Armenia (NCFA) has been delayed till February. PAs have huge potential of ecotourism development but not realized yet. CNF highlighted the importance of projects to develop visitors and/or ecotourism projects. This will be one of the priorities in preparation of final budgets. For: Activity 3. CNF continued to carry out its management and monitoring responsibilities in respect of the project during the period. III. 2014 ANNUAL WORK PLAN For: Activity1 1.1 Support for Protected Areas. In 2014, work in PAs previously supported by CNF is planned as follows: Arevik, Shikahogh (from January first both– “Zangezur” Biosphere Complex) with a one year contract pending further developments on the organization of the new complex and KfW’s support under the open program, Khosrov Forest with a one year grant pending implementation of a new HR plan, Khosrov has prepared a draft budget already. One of the innovations in the Khosrov is that they included some elements of financial planning and program budgeting into their recent budgets. Arzakan – Meghradzor under the existing grant with focus on the preparation of a management plan Lake Arpi PA under the existing grant Work in PAs not supported last year by CNF is planned as follows: Dilijan NP for the creation of a Management Plans. Dilijan NP Management Plan tender is in the process yet and several good applications have been received. The commission will be established by the order of Minister to evaluate the results of the tender. It is planned to start management planning from February of 2014. 3 “Caucasus Wildlife Refuge” PA – a NGO Managed Private PA in the buffer zone of Khosrov Forest has applied to CNF for the support. The support to “Gnishik” PA – a new established Community Managed PA in Vayotc Dzor region has been discussed. The application forms with budgets and work plans will be ready till the middle of February. The total budget for Armenia will be about euro 500 000. The new application forms, budgets and work plans will be ready till the mid February. 1.2 Development of CNF (Fundraising). CNF will continue to carry out its ordinary fundraising activity for the future development of the projects during the period. We will continue our fundraising efforts for Armenia’s PAs. It is planned to apply to HSBC with the new project proposal for Khosrov Forest (or other PA) on financing development projects and to work with the Ministry on other corporate fundraising activities For Activity 2 2.1 Technical monitoring and financial audits. The technical and financial audits will be organized according to the agreements. 2.2 PA Capacity Building. For the PA capacity building are planned to; ‐ Work with Ministry to improve the overall management and particularly procurement in PAs, ‐ discuss the HR audit report made by KPMG for Khosrov Forest and support to implementation of its recommendations, ‐ sign the MoU with WWF Armenia and NCFA and start to implement projects according to the MoU, ‐ Look at for additional funds and organizations to support capacity building in PAs and particularly on ecotourism development, ‐ Continue to monitor the effectiveness of accounting software usage and provide trainings in other PAs upon necessity, For: Activity 3 CNF will continue to carry out its management and monitoring responsibilities in respect of the project during the period. 4 .
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