Annex 1 LATVIA - RUSSIA CROSS - BORDER COOPERATION PROGRAMME 2014-2020 Co-financed by the European Union and the Russian Federation 2 Contents SECTION 1. INTRODUCTION .........................................................................................4 1.1.Regulatory framework ...........................................................................................4 1.2. Programme preparation steps................................................................................4 SECTION 2. DESCRIPTION OF THE PROGRAMME AREA ........................................7 2.1. Programme Territory ............................................................................................7 2.1.1. Core area............................................................................................................8 2.1.2. Adjoining area....................................................................................................8 2.1.3. Major social, economic or cultural centres........................................................9 2.2. Population and demography ...............................................................................11 2.3. Regional economy ..............................................................................................11 2.4. Business development.........................................................................................12 2.5.Tourism................................................................................................................13 2.6. Environment........................................................................................................15 2.6.1. Natural resources and their management...............................................15 2.6.2. Waste management ................................................................................17 2.7. Border crossing facilities ....................................................................................18 SECTION 3. PROGRAMME STRATEGY......................................................................21 3.1. The context of the Programme............................................................................21 3.2. Description and justification of the Programme strategy ...................................23 3.3. Coherence with other Union-financed programmes and Latvian and Russian national and regional strategies..........................................................30 3.4. Lessons learnt from past cross-border cooperation programmes .......................32 3.5. Risk analyses and mitigation measures ..............................................................34 3.6. Description of the chosen priorities and objectively verifiable indicators..........................................................................................................37 „Business and SME development” (TO 1) ......................................................37 Priority 1.1. „Promotion of and support to entrepreneurship”.........................37 Priority 1.2. „Development and promotion of new products and services based on local resources”.....................................................38 „Environmental protection, climate change mitigation and adaptation” (TO6) ..............................................................................41 Priority 2.1. „Efficient management of nature objects”...................................41 Priority 2.2. „Joint actions in environmental management” ............................43 Priority 2.3. „Support to sustainable waste and waste water management systems”........................................................................45 Promotion of border management and border security, mobility and migration management (TO10)..........................................................48 Priority 3.1. „Improvement of border crossing efficiency and security” .............................................................................................48 SECTION 4. CROSS-CUTTING ISSUES........................................................................54 3 4.1. Environmental sustainability ..............................................................................54 4.2. Gender equality, HIV/AIDS and democracy and human rights .........................55 SECTION 5. STRUCTURES AND APPOINTMENT OF THE COMPETENT AUTHORITIES AND MANAGEMENT BODIES..................................................56 5.1. The relevant authorities and bodies ....................................................................56 5.1.1. The Joint Monitoring Committee...........................................................58 5.1.2. The Managing Authority........................................................................59 5.1.3. National Authorities...............................................................................62 5.1.4. The Joint Technical Secretariat..............................................................63 5.1.5. The Audit Authority...............................................................................66 5.1.6. The control contact points......................................................................66 5.1.7. Overview of the Staff Resources Dedicated to Programme Management.......................................................................................67 SECTION 6. PROGRAMME IMPLEMENTATION .......................................................68 6.1. A summary description of the management and control arrangements..............68 6.2. Timeframe for Programme implementation .......................................................71 6.3. Basic principles in relation to the projects and beneficiaries..............................71 6.3.1. Nature of support ...................................................................................71 6.3.2. Beneficiaries ..........................................................................................73 6.3.3. Conditions for financing ........................................................................73 6.3.4. Rules on eligibility of expenditure ........................................................74 6.3.5. Description of project assessment and selection procedure...................76 6.4. A description of the Monitoring and Evaluation system ....................................80 6.5. The communication strategy...............................................................................81 6.6. Environmental assessment..................................................................................82 6.7. A description of computerised Programme management system.......................84 6.8. The apportionment of liabilities among the participating countries...................84 6.9. Description of planned use of TA and applicable contract award procedures........................................................................................................85 6.10. The rules for the transfer, use and monitoring of co-financing ........................87 6.11. Financial flows..................................................................................................88 6.11.1. Indicative financial plan.......................................................................88 6.12. Use of the Euro .................................................................................................91 6.13. Use of languages...............................................................................................91 6.14. State aid rules....................................................................................................91 7. LIST OF ABBREVIATIONS AND COMMON TECHNICAL TERMS.....................92 Annexes: ....................................................................................................................94 4 SECTION 1. Introduction 1.1.Regulatory framework Latvia – Russia Cross-border Cooperation Programme 2014-2020 (hereinafter – the Programme) is co-financed by the European Union (hereinafter – the EU) under the European Neighbourhood Instrument (hereinafter – the ENI), the European Regional Development Fund (hereinafter – the ERDF) and by the Russian Federation (hereinafter – Russia) and the Republic of Latvia. Legal acts of both EU and Russia have been taken into account preparing the Programme. EU legal acts, the Programme has been prepared in accordance with, are as follows: the Regulation (EU) No 236/2014 of the European Parliament and of the Council of 11 March 2014 laying down common rules and procedures for the implementation of the Union's instruments for financing external action; Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (hereinafter – Regulation (EU) No 232/2014); Commission Implementing Regulation (EU) No 897/2014 of 18 August 2014 laying down specific provisions for the implementation of cross-border cooperation programmes financed under Regulation (EU) No 232/2014 of the European Parliament and the Council establishing a European Neighbourhood Instrument (hereinafter – Regulation (EU) No 897/2014); the Programming document for European Union support to ENI cross-border cooperation for the period 2014- 2020 (hereinafter – the ENI Programming document), that provides the strategic framework for EU support for cross-border cooperation on the external borders of the EU, under the ENI, for the period 2014-2020 including partnership with Russia. Moreover Regulation (EU, EURATOM) No 966/2012 of the European Parliament and of the Council