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Strategic Report on Implementation of the EEA Financial Mechanism 2009–2014 in Latvia January – December 2016

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Strategic Report on Implementation of the EEA Financial Mechanism 2009–2014 in Latvia January – December 2016 Republic of Latvia Ministry of Finance (Focal Point) EU Funds Monitoring Department Strategic Report on Implementation of the EEA Financial Mechanism 2009–2014 in Latvia January – December 2016 Riga, 31 March 2017 Table of Content Glossary of Acronyms ................................................................................................. 4 1. Executive summary ................................................................................................. 5 2. Assessment of the effect of the Grants ................................................................... 7 2.1 Cohesion and relavant policy developments ...................................................................... 7 Climate Programme ................................................................................................................. 7 Cultural Heritage Programme .................................................................................................. 9 NGO Fund ................................................................................................................................ 9 Research and Scholarships Programme ................................................................................. 10 2.2 Bilateral relations ............................................................................................... 13 NBF ........................................................................................................................................ 13 PBF ........................................................................................................................................ 15 3. Reporting on programmes .................................................................................... 22 3.1 Overview of programme status .......................................................................... 22 Pre-defined projects ............................................................................................................... 22 SGS/OCs’s projects ............................................................................................................... 22 3.2 Individual programme summaries ..................................................................... 25 National Climate Policy ......................................................................................................... 25 NGO Fund .............................................................................................................................. 27 Cultural Heritage programme ................................................................................................ 29 Research and Scholarships Programme ................................................................................. 32 4. Management and implementation ....................................................................... 35 4.1 Management and control systems and legislation compliance .......................... 35 Risk management at national level ..................................................................................... 36 Risk management at the programme level ........................................................................ 37 4.2 Irregularities ....................................................................................................... 39 4.3 Audit, monitoring, review and evaluation ......................................................... 40 4.4 Information and publicity .................................................................................. 42 4.5 Work plan .......................................................................................................... 46 5. Summary listing of issues and recommendations............................................... 47 2 6. Attachments to the Strategic Report. ................................................................. .48 Annex 6.1 Applications received, selected and contracted for each programme .. ..48 Annex 6.2 Donor partnership projects in each programme ..................................... 52 Annex 6.3 Donor partnership projects in Latvia ..................................................... 62 Annex 6.4 List of irregularities detected at programme level ................................ .63 Annex 6.5 List of irregularities detected at project level ........................................ 64 Annex 6.6 Monitoring and audit activities plan for 2017........................................ 66 System audits at the level of BS according to the Article 4.6, Paragraph 1(a), of the Regulations ............................................................................................................................ 66 System audits at the level of the programme according to the Article 4.6, Paragraph 1(b), of the Regulations ....................................................................................................................... 66 Projects audits according to the Article 4.6, Paragraph 1(c), of the Regulations .................. 66 Internal audits at programme level ........................................................................................ 66 On-spot checks ....................................................................................................................... 66 Evaluations according to the Article 9.1., Paragraph 1, of the Regulations .......................... 66 Annex 6.7 Risk assessment ..................................................................................... 67 Annex 6.7.1 Risk assessment at the national level ................................................................ 67 Annex 6.7.2 Risk assessment at the programme level ........................................................... 69 Annex 6.8 Annual Report 2016 under the TAF Agreement ................................... .73 Annex 6.9 Economic background of EU, Latvia and cooperation with donor states.81 Annex 6.10 Overall progress of programmes’ outcomes and outputs .................... 90 Annex 6.10.1 Outcomes` progress ......................................................................................... 90 Annex 6.10.2 Outputs` progress ............................................................................................ 96 Annex 6.11 Executive summary on Evaluation of the efficiency of the European Economic Area Financial Mechanism and Norwegian Financial Mechanism 2009 – 2014 period (further – Financial Mechanisms) implementation’s system ................................................. 103 3 Glossary of Acronyms AA – Audit Authority AAR – Annual Audit Report ADAPT pre-defined project – pre-defined project „Development of Proposal for National Adaption Strategy, including Identification of Scientific Data, Measures for Adapting to Changing Climate, Impact and Cost Evaluation” under Climate Programme BS – Beneficiary States CA – the Certifying Authority CC – Cooperation Committee CoM – Cabinet of Ministers (Latvian Government) Climate Programme – Programme LV02 “National Climate Policy” CPCB – Corruption Prevention and Combating Bureau of Latvia Cultural Heritage Programme – Programme LV04 “Conservation and Revitalisation of Cultural and Natural Heritage” DPP – Donor Programme Partner EC – European Commission EEA – European Economic Area Embassy – Royal Norwegian Embassy in Riga EU – European Union FMs – EEA Financial Mechanism and Norwegian Financial Mechanism FMO – Financial Mechanism Office FP – National Focal Point GHG – greenhouse gas IFR – Interim Financial Report INVENT pre-defined project – pre-defined project “Development of the National System for Greenhouse Gas Inventory and Evaluation and Reporting on Policies, Measures and Projections” under Climate Programme MCS - FMs` Management and Control System MoC – Ministry of Culture MoEPRD – Ministry of Environmental Protection and Regional Development MoES - Ministry of Education and Science MoF – Ministry of Finance NBF - Fund for Bilateral Relations at the National Level NGO – nongovernmental organization OC – open call PA – Programme Agreement PBF - Fund for Bilateral Relations at the Programme Level PMCS – Programme Management and Control System PO – Programme Operator PP – project promoter PMB – Procurement Monitoring Bureau Programme Regulations – CoM Regulations on respective Programme`s implementation and OCs R&D – Research and development Regulation – Regulation on the Implementation of the FM 2009-2014 Research and Scholarships Programme – Programme LV05 “Research and Scholarships” SEDA – State Education Development Agency SGS – Small Grant Scheme SIF – Society Integration Foundation TAF – project LV001 “Technical Assistance Fund 2011-2017” (inc. NBF) 4 1. Executive summary According to the Article 2.2, Paragraph 1 of the Regulations MoF, acting as FP for the implementation of the FMs in Latvia, has prepared the “Strategic Report on the implementation of the FM 2009-2014 in Latvia January – December 2016”. Before submission to the donor states according to the requirement set out in Paragraph 4 of Article 4.4 of the Regulations the Strategic Report was approved in the written procedure in March 2017 by the Monitoring Committee of the FMs. All comments and proposals received from the Committee were taken into account by updating the Report. It will be discussed during the Annual Meeting in April 2017. The document aims to present the progress of FM`s implementation in Latvia within pertinent socio-economic environment, incl. status of the overall and specific goals` achievement, bilateral relations, the status of programmes and the
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