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Annex 1 - ENPI Regional Action Programme 2012 - part 2

1. IDENTIFICATION

Title/Number Eastern Partnership Integrated Border Management Flagship Initiative: "Provision of equipment and infrastructure for the Bagratashen-Sadakhlo border crossing point between Armenia and Georgia and enhancement of their capacities" pilot project.

CRIS: ENPI/2012/023-798

Total cost (indicative)

Total cost: EUR 4,300,000 EU contribution: EUR 3,582,500 (83.3%)

Partner countries contribution (joint-financing): EUR 717,500 (16.7%)

Aid method/ Method of implementation

Project approach – joint management with the United Nations Development Programme (UNDP)

DAC-code 15210 Sector Security system management and reform

2. RATIONALE

2.1. Sector context

The Bagratashen (Armenia) -Sadakhlo (Georgia) Border Crossing Point (BCP) is located on the M-6 connection road from Yerevan, Armenia to Tbilisi, Georgia, at the crossing of the river bank of Debed River (Armenia) – Debeda (Georgia), marking the state border between Armenia and Georgia at 453 metres above sea level. It is part of the transport corridor connecting the Armenia-Iran border crossing in the south with Bagratashen. This is the main transport corridor which due to the political, economic and geographical factors connects Armenia with the Republic of Turkey and the Russian Federation. This corridor is also the main route for sea cargo to the destination of Armenia and vice versa. The authorities are working on the integrated border management agreement, which will enable the appropriate authorities to conduct identical procedures at exit point and this procedure will have the same legal status in entry point. Republic of Armenia: With support from SCIBM1 in the area of legislative and institutional frameworks, the Government of Armenia adopted the 2011-2015 Integrated Border Management (IBM) Action Plan. According to this Action Plan, one of the priorities for the Armenian authorities is the modernization of all border crossing points (BCP) of the Republic of Armenia, including Bagaratshen, Bavra and Gogavan BCPs on the border with Georgia. Further to the adoption of this Action Plan and with the support of SCIBM, an international engineering company was contracted to develop design-outlines and bills of quantities for the implementation of the “Modernization of Bagratashen, Bavra and Gogavan BCPs of the Republic of Armenia” (MBBG) project2.

1 The "Supporting Integrated Border Management in the South Caucasus (SCIBM)" programme is funded by the EU and implemented by UNDP. More information on this programme is available under § 2.3 "Complementary actions" 2 More information on the MBBG project is available in annex 1

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The current infrastructure of the three BCPs, including Bagratashen, copes in global terms with processing cross-border turnover, but does not fully comply with the requirements of modern border management. In the border area the main problem is with the bridge over the Debed River, located at the Armenian entry gate. This bridge, about 120 m long was constructed in 1960s and lacks proper maintenance. Due to its location just after the gate from the Armenian side, vehicles are often waiting to cross the border along the bridge. Since the cross section has only two narrow traffic lines it produces bottlenecks at times. Fundamental reconstruction and modernization of Bagratashen, as well as Bavra and Gogavan BCPs will contribute to further increase traffic and passenger flows through the aforementioned crossing points3, reduce waiting times spent on various BCP procedures4 and, in the meantime, will significantly strengthen and enforce border and customs controls, and border security in general. This issue is critical for the Republic of Armenia given its geographical location along the transit routes used for human trafficking5, illegal drug trafficking, possible illegal cross-border movement of nuclear and radioactive materials and bio-terrorism. To address these challenges, new state-of-the-art Border, Customs, Veterinary-Phytosanitary and Sanitary-Quarantine control equipment is planned to be provided and installed in the modernized facilities and operated by professionally trained personnel. New IT solutions aimed at facilitating information and data exchange on inter-agency level will also be applied. There is a great need for creation the interoperable systems to enhance the cross-border cooperation thorough the data and information exchange. Together with the improved traffic management infrastructure and procedural reforms, installation of this new control equipment and IT systems will allow full and comprehensive use of the benefits of Integrated Border Management system. Increased traffic flows do not only imply movement of larger volumes of people, but also improved regional and international trade. Growth trends observed in most recent years6 allow to make a more than positive forecast for а later time. Reconstruction and modernization of Bagratashen, Bavra and Gogavan BCPs will strongly support this growth in import and export by making these border posts most convenient for traders both in terms of infrastructure and streamlined procedures that will be applied due to this new infrastructure. Second line examination terminals will make it possible for all traders who wish to do so, to clear their cargo directly at BCPs. Increased volumes of trade and transit will eventually lead to an increase in state revenues through a larger amount of customs payments collected from traders. Armenia’s role as a transit route will also grow, which is more than crucial for a land-locked country. All the above mentioned positive impacts and benefits of the project in question, most important of them being improved controls and increased volumes of trade and transit and, ultimately, increased state revenues, bear critical significance for Armenia’s national security. More information on the Armenian context and on the Armenian actors involved in border crossing related control is available in Annex 1. Georgia: A Border Management Strategy of Georgia was approved in 2008 by the Ordinance of the President #59 (04.02.2008). The Guidelines for Integrated Border Management in the Western Balkans have been used in that framework; the Georgian Border Management Strategy is in line with some parts of the guidelines for IBM in the Western Balkans. The implementation of internal, interagency and international new mechanisms in the sphere of border management and the priorities of the European Neighbourhood Policy, to ensure the transformation to 3 see Table 1 and 1a in annex 1 4 see Table 2 in annex 1 5 Statistics on human trafficking in Armenia are available in annex 1 6 see Table 1 and 1a in annex 1

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modern standards of border control, have been taken into account during the elaboration of the IBM Strategy Implementation Action Plan7 which was approved by Presidential Decree on 25th December 2009. The Government of Georgia has supported the IBM related costs from the state budget. The relevant border infrastructure was also put in place. The existing BCPs have been modernised with the appropriate infrastructure. The Sadakhlo-Bagratashen border check point between Georgia and Armenia functions normally, almost all essential services, facilities, personnel and governmental agencies are present and operational. However, as mentioned above, there is still a need for infrastructure development on the Armenian side of the BCP and for a further infrastructure improvement as well as for certain IBM related equipment on the Georgian side of the BCP. The Intergovernmental Commission between the Government of Georgia and the Government of Armenia being leaded by the Prime-Ministers of the countries elaborated the decision in 2011 to sign the general agreement in 2012 regarding the implementation of Integrated Border Management principles.

The EU Advisory Group in Yerevan conducted a comprehensive assessment of the Georgian – Armenian BCP and made a number of recommendations to increase the efficiency of the BCPs. BCP INFRASTRUCTURES AND EQUIPMENT The need for the equipment and infrastructure development at Bagratashen-Sadakhlo BCP affects immediately the border and customs officials of the two countries, who are most affected by the high risks of illicit trafficking of goods to/from Iran, Turkey and the Russian Federation as well as further to EU. The impact and/or the result of the deficiencies in the process of managing the BCP may be a threat to security to both countries concerned, as well as any other destination, to where the goods and people may transit after crossing the Sadakhlo-Bagratashen BCP. The main functions of the Sadakhlo-Bagratashen border crossing point are as follows: passport and visa controls, customs control regarding the passengers, vehicles, different transport means; phytosanitary and veterinary controls; health checks for epidemic prevention, customs related duty and taxes collection and customs anti-smuggling controls. Armenian side is equipped with Rapiscan type cargo inspection scanning equipment. Due to the limited infrastructure and control possibilities the risk of illicit traffic of goods and crime proceeds is likely. Georgian side lacks of non-intrusive detection equipment which makes the BCP vulnerable to illicit traffic of goods. There is a need of infrastructure development on the Armenian side of the Sadakhlo-Bagratashen BCP to ensure efficient functioning of the BCP.

The provision of equipment within this "Provision of equipment and infrastructure for BCPs Bagratashen-Sadakhlo between Armenia and Georgia and enhancement of their capacities" project enables more effective Border Control and Customs Control and the development of infrastructure will allow a more secure environment to conduct examinations of goods and vehicles. Where possible the joint use of equipment and IT systems will be promoted and trainings on joint use of equipment will be conducted for Georgian and Armenian border management services. The managers on both sides of the borders will need to focus on data and information exchange through the agreed at the central level protocols and reporting forms.

7 More information on the Georgian IBM strategy and on the Georgian actors involved in border crossing related control is available in Annex 2.

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This will entail a regulatory support for drafting interagency and cross-border cooperation MOUs and/or agreements and further encouragement for their operationalization. Considering that BCP Bagratashen-Sadakhlo is the main route for movement of goods and individuals between Georgia and Armenia, it is particularly important to provide for simplification of the border crossing procedures by individuals while keeping the effective level of control. One of the ways to decrease the workload of the Georgian police officers is the installment of electronic gates (e-gates) for passport control – which was made possible by introduction of biometric travel documents. The proposed action is consistent with the IBM concept and is proposed to fill the gaps in the field of fully fledged secure functioning of the Sadakhlo-Bagratashen BCP.

2.2. Lessons learnt

The US supported multilateral cooperation activities in the areas of IBM capacity building and fight against cross-border trafficking in the framework of GUAM (Georgia, Ukraine, Azerbaijan, and Moldova) Organisation for Democracy and Economic Development. This project will take the GUAM Organisation experience into account and build on it where appropriate.

2.3. Complementary actions

The objective of the project is to provide appropriate border crossing and related infrastructure and equipment on Armenia's Northern border with Georgia. The European Union supports improved border management in countries to the East in order to ensure enhanced border security and to facilitate legitimate trade and transit between Neighbourhood countries, and with the EU itself. In this regard, the European Commission is financing a number of initiatives, detailed below, to establish economic corridors and promote the application of the IBM methodology. Eastern Partnership (EaP) IBM Flagship Initiative Training (FIT) - Border management authorities in both countries will benefit from the trainings and capacity building provided through this complementary project run by the International Centre for Migration Policy Development (ICMPD) under the EAP IBM Flagship Initiative. SCIBM - Since January 2010, the three Southern Caucasus countries receive the support through the EU funded and UNDP implemented “Supporting Integrated Border Management in the South Caucasus Programme” (SCIBM) programme aimed at the introduction of EU best practices and IBM standards by streamlining the IBM related legislation, reforming the relevant institutional frameworks, developing the capacities of border management agencies and enhancing the intra-service, inter-agency and cross-border cooperation. SCIBM project covers the IBM related issues at a broader capacity building level, supporting the border and customs officials in both countries via extensive trainings on IBM matters and certain equipment/infrastructure development. For the sake of coherence of EU actions on the region, lessons learnt and strategies implemented in the frame of this project will be of high relevance. FRONTEX pays special attention to cooperation with third countries in line with general EU guidelines8. Bilateral working arrangements on establishment of the operational cooperation with the relevant authorities of five out of six Eastern Partnership countries have been signed (Republic of Belarus, Georgia, Armenia, Moldova and Ukraine). Azerbaijan is underway of

8 http://www.frontex.europa.eu/external_relations/

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signing the cooperation agreement with FRONTEX. According to the arrangements, cooperation focuses on the exchange of information and experience, risk analysis, joint operations, training, joint activities and secondment of border guards to EU Member States’ units responsible for border control, etc. The cooperation should improve the operational interoperability between EU Member States and partner countries. To help support the improved cooperation, defined cooperation plans are being developed. The two-year Integrated Border Management Flagship Initiative Training (IBM FIT) project under the Eastern Partnership was launched in January 2011 and is implemented by the International Centre for Migration Policy Development. Its activities in the six beneficiary countries covers areas such as the development and organising of training and capacity building programmes, facilitation of international and interagency co-operation, and supporting governmental and administrative bodies in their institution building efforts. This includes legal reform in areas such as asylum, visa, human trafficking and integrated border management. The "Transport Corridor Europe-Caucasus-Asia" (TRACECA) is an EU funded assistance programme involving the European Union and 13 countries of the Eastern European, Caucasus and Central Asian regions. Currently there are four on-going projects aiming at supporting the approximation of these countries to EU norms and standards and improving their transport infrastructure on the corridor. In parallel to this, TRACECA is a political process, based on the Basic Multilateral Agreement signed in Baku (Azerbaijan) in 1998. The implementation of this agreement is undertaken by the Intergovernmental Conference and the TRACECA Permanent Secretariat in Baku, financially supported by the parties to the Basic Multilateral Agreement. Twinning in Georgia - The European Union has awarded a grant to the Georgian Revenue Service for the project aiming at strengthening the border control in Georgia. The project, which takes the form of twinning, is led by Denmark, with Estonia and Italy as junior partners. The project has two major components on customs and Sanitary and Phyto-Sanitary Control. Another Twinning project entitled "Support the State Migration Service for strengthening of migration management in Georgia" also incorporates aspects relevant to border management. Twinning in Armenia - EU is starting up a major project in Armenia titled Support to the State Revenue Committee for strengthening of Customs control procedures and enforcement in Armenia according to the best practice in the EU member states. The Project is aimed at supporting the State Revenue Committee in strengthening the national Customs by the development of specific Customs procedures including Risk Management, Post Clearance controls and Audit. The project includes reviews of the relevant legislation, operational procedures and resources will provide sustainable benefits within a strong strategic base and a cascade training approach. In addition, it will provide best practice transfer of experience and knowledge from Member State twinning partner(s) based on EU Customs Strategic Blueprints and World Customs Organisation and World Trade Organisation standards. Another twinning project in Armenia providing capacity building to the State Migration Service has also just started being implemented. EU mobility partnerships with Georgia and Armenia - Such partnerships provide a political framework for cooperation between the EU, its Member States and a third country on all areas of the EU's Global Approach to Migration and Mobility (legal migration, irregular migration, migration & development and asylum). Mobility partnerships are in place with both Georgia and Armenia, and were signed in November 2009 and October 2011 respectively. In both of the political declarations (which form the basis of the partnerships), a strong focus is placed on enhancing cooperation on border management with EU Member States and conducting capacity building to promote the implementation of Integrated Border Management.

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Modernisation of Bagratashen, Bavra and Gogovan (MBBG) BCPs in Armenia – As mentioned above, further to the adoption by the Government of Armenia of the 2011-2015 IBM Action Plan, the technical specifications of the project “Modernization of Bagratashen, Bavra and Gogavan BCPs of the Republic of Armenia” (MBBG)9 have been prepared. The estimated cost of the MBBG Project is EUR 62 Million. In October 2011, the Armenian Government applied to the European Investment Bank (EIB) and European Bank of Reconstruction and Development (EBRD) for a loan. It is expected that the above IFIs will release a loan for the MBBG project and the EIB will coordinate with the Neighbourhood Investment Facility (NIF) for applying for the grant. In October 2011, the Prime Minister of Armenia requested the UNDP to act as the operator of the MBBG project. The UNDP agreed to implement the MBBG project and ensure the coordination of project activities with other upcoming projects in IBM area and effective management of resources coming from various International Financing Institutions (IFIs). The funding of the "Provision of equipment and infrastructure for the Bagratashen-Sadakhlo border crossing point between Armenia and Georgia and enhancement of their capacities" project will be complementary to the funding from the Government of Armenia, EIB, EBRD, NIF and UNDP, the latter being the selected implementing agency, with which the Government of Armenia will sign a cost-sharing agreement. On-going activities in the area of trafficking and criminal use of Chemical, Biological, Radiological and Nuclear materials (CBRN) conducted by the "CBRN Centres of Excellence (CoE)" and funded under the Instrument for Stability - There is a CBRN CoE South East Europe/South Caucasus/Ukraine/Moldova.

2.4. Donor coordination

The donor coordination in the field of border management is undertaken by the EU together with the Armenian and Georgian Authorities. The most active participants of the process are the EU Delegation to Armenia, EU Delegation to Georgia, the UNDP and EU MSs. The discussion meetings are held regularly in Yerevan at the National Security Council. The meetings in Georgia take place also on a regular basis in the Ministry of Internal Affairs of Georgia, on the initiative of the Ministry not less than twice a year.

3. DESCRIPTION

3.1. Objectives

The overall objective of the proposed action is to facilitate the movement of persons and goods across borders while at the same time maintaining secure borders through the enhancement of Inter-Agency cooperation, bilateral and multi-lateral cooperation among the target countries, EU MS and other international stakeholders. The first specific objective is to support institutional development and capacity building of the agencies acting at the Bagratashen-Sadakhlo BCP. Integration of procedures and exchange of information between Armenian and Georgian authorities will be of special relevance. The second specific objective is to improve security, to reduce smuggling and trafficking of people and goods, ensure the identification and subsequent appropriate treatment of irregular migrants, asylum seekers and refugees victims of human trafficking and other vulnerable migrants, which will ultimately support the facilitation of mobility of people across the Bagratashen-Sadakhlo BCP in a secure and well-managed environment.

9 More information on the MBBG project is available in annex 1

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3.2. Expected results and main activities

The following results shall be achieved: • Standard Operational Procedures (SOPs) at Bagratashen-Sadakhlo Border Crossing

Point are strengthened; • The cooperation between the Border Agencies and the cross border cooperation is

enhanced through exchange of information, common capacity building initiatives and design of possible joint actions;

• Bagratashen-Sadakhlo BCP becomes more advanced through the delivery of equipment and provision of infrastructure to improve passport control, persons, goods and vehicles checking;

• The skills and capacities of the staff of Border Management Agencies is enhanced through trainings, including trainings in shift management and efficient implementation of SOPs;

• The provided equipment, facilities and utilities are jointly used by Georgian and Armenian border management services, ensuring an IBM approach.

To achieve the results listed the following activities shall be undertaken: Component (1): Project baseline and impact assessment

• Assessment of the baseline including of the operational procedures on Bagratashen-Sadakhlo Border Crossing Point, taking into consideration the outcomes of the assessment of another Ninotsminda-Bavra BCP, undertaken within the Eastern Partnership Integrated Border Management programme;

• Impact assessment of the project intervention including of the procured equipment; Component (2): Integration of procedures and exchange of information

• Streamlining operational procedures on Bagratashen-Sadakhlo BCP, aligning them with the IBM standards and procedures including providing support in the respective drafting shall be provided. As a result of this intervention all the three layers of the concept of IBM shall be implemented, by promoting intra-service, inter-service and inter-state cooperation at BCP. These shall include, but not be limited to the following: BCP level operations in identifying and processing suspicious cases without disturbing legitimate movements: customs/cargo export and import declarations from traders (including pre-export and pre-import declarations); primary and secondary control standards for commercial traffic (customs) and individual traffic (border guards) and especially first and second line document control systems; identification of fraudulent documents.

• Exchange of experience on the involvement of the population living in border areas in the protection of the state border;

Component (3): Capacity Building

• Training sessions/study tours as necessary and appropriate (including, but not limited to: Border security and management, international trade; awareness raising of IBM EU concepts, principles and best practices including cross border co-operation; operational techniques and management for customs and border guards; administrative managerial skills for interagency co-operation; managerial skills especially regarding executive leadership, organisational development and management of change; EU principles on risk management at the border, introducing the concept of authorised economic operator to facilitate legitimate trade while enhancing the security of the supply chain; risk analysis to identify high-risk consignments and risk adjusted control operations based on risk management for both main border authorities (Specific

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training on customs search techniques) ; the advanced training on document inspection for first line operators in the area of identification of fraudulent documents, profiling and identification of persons, etc.) based on the assessment of the training needs at the BCP for the purpose of the efficient introduction and implementation of the upgraded operational procedures in line with the IBM standards as well as learning the best practices in the sector shall be provided, as necessary;

• Training on the detection and checking of foreign and falsified documents, illegal drugs and explosives at BCPs.

• Training on identification and appropriate treatment of victims of human trafficking (VoT), asylum seekers and other types of migrants identified at the border, including on providing victims support through the application of appropriate national referral mechanisms (e.g. involving appropriate NGOs), as well as enhancing the capacities of border guards to focus on readmission issues in line with the requirements of national law and human rights standards.

Component (4): Provision of equipment and infrastructure

• Preparation of tenders for procurement of equipment (X-ray Cargo inspection system, two electronic gates, two safe and non-invasive increased distance detection systems, passport readers, etc. on the Sadakhlo side of BCP) and provision of infrastructure (construction of the engineering networks [gas, electricity, IT systems] and BCP facilities, provision of respective equipment on the Bagratashen side of the BCP as well as on Sadakhlo side) to improve passport control, person, goods and vehicle checking by assessment of the beneficiary countries' needs for the IBM needs, preparation of the respective technical specifications and other necessary tender documents for the supply contract(s). With regard to the provision of BCP facilities, attention will be paid to the need to equip the BCP with facilities that, according to best international standards, allow to interview and accommodate temporarily irregular migrants, asylum seekers and victims of human trafficking.

• Supervision of the implementation of tenders for procurement of equipment and provision of infrastructure to improve passport control (to assess new developments in document security or introduce new equipment for inspecting documents (i.e. biometrics, RFID, etc.).

• Provision of appropriate document inspection devices and updated reference materials regarding genuine travel documents, BCP equipment and infrastructure.

• Liaising with local authorities on the implementation of infrastructure upgrading works, especially of engineering networks’ installation and where possible to make those networks accessible to the local communities in cooperation with the state;

3.3. Risks and assumptions

Assumptions: • Continuation of general socio-economic and political stability in the region; • Beneficiary administrations of Armenia and Georgia demonstrate a sense of ownership

for the process; • There is a commitment and interest from administrations of both countries to share

information, harmonise procedures, systems and practices in accordance with EU standards and/or Project recommendations;

• Beneficiary agencies of Republic of Armenia and Georgia will make available sufficient numbers of appropriate qualified personnel for the project activities.

Risks:

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Along with all the benefits and advantages of this Project, there are also a few risks involved, ranging from low to medium probability and impact that need to be carefully considered and accounted for. Political:

- Changes in political relations between Armenia and Georgia, low risk ; - Changes in political relations between Turkey and Armenia leading to opening of the

border and revitalization of currently non-functional border posts, low risk. - Changes in state policies towards integrated border management, low risk; - Denunciation or breach of the existing cross-border cooperation agreements between

Armenia and Georgia regarding the management of their common border and “Bagratashen”, “Bavra” and “Gogavan” BCPs, low risk;

Economic: - Negative changes in regional economic environment, medium risk; - Changes in trade policies and transit and in-land freight and passengers flows, medium

risk; - Changes in state tax and customs policies, low risk; - Alterations in implementations of transportation infrastructure development programs,

medium risk;

Social: - Numeral ethnical and social variations in cross-border population that may have an

impact on the number of regular border crossings, medium risk.

Technical: - Poor quality of road network connecting the inland areas to the BCPs (apart from

Bavra, which is a project site for the North-South Road Corridor project, roads taking to Bagratashen and Gogavan are in a very bad condition and seasonal maintenance and sectional repairs do not help to contain these roads in a good shape throughout the year), medium risk;

- Unreliable results of geodetic-geological, hydrological and other preliminary surveys, low risk;

- Inaccurate engineering solutions, low risk.

Environmental: - Low quality of environment impact assessment of prospective activities, medium risk:

this issue may require a specific monitoring in the implementation phase and the adoption of measures to ensure that any requested environmental impact assessment is carried out in line with EU standards;

- Insufficient measures for prevention of negative anthropogenic impact and improper level of analysis of geophysical characteristics of the planned construction area would cause additional engineering solutions and increase of construction costs, medium risk.

Legislative: Changes in legal regulations in the field of natural resources’ protection, state border management, changes in existing building and design norms, procurement regulations, Border delimitation etc, low risk.

Corruption is an important risk for the full implementation of the objectives of the project. Specific activities aiming at reducing that risk and raise awareness of local authorities might be included in order to reduce it.

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3.4. Crosscutting Issues

All the activities will pay special attention to the European Union standards and best practices which are developed in the field of Integrated Border Management and laid out in the Schengen Catalogue and IBM guidelines10.

Good governance and human rights: While promoting better dialogue between different levels of the state administration, the programme will promote good governance principles (particularly ownership, equity, transparency and anti-corruption). It will also promote the respect of protection principles for asylum seekers. Specific attention will be given to raising awareness of border management officials to the specific needs of vulnerable populations, especially women, minors and individuals at risk of human trafficking.

Gender balance: The programme will contribute to promote gender balance in several ways, and ensure that in areas such as training, women's participation in the border management adequately considered.

Environment: capacity building components of the programme will take into consideration the environmental sustainability of projects.

3.5. Stakeholders

The project focuses on the Republic of Armenia and Georgia. The commitment in each of the countries towards the implementation of the IBM principles is high; various stakeholders were identified during the study, preceding the project identification period and listed below. Republic of Armenia (RA): National Security Council (NSC) has overall responsibility for the development of national strategies and policies. All strategies must be first adopted by this council.

• The RA border troops are responsible to protect the RA state border, ensure the RA security and independence at the state border, and implement border control, state border regime and border regime at the state border crossing points.

• The Passport and Visa department of the RA Police issue entry visa to foreigners, penalising the foreigners under administrative law in line with the procedures specified by administrative law.

• The State Food Security and Veterinary Inspection has the control over the animals imported and exported through the RA state border crossing points, food and raw material of animal origin, feed, supplements, bacteriological types, veterinary measures and veterinary medical means, as well as materials and the objects carrying the microbes of infectious diseases of animals.

• RA Ministry of Health is represented in the BCPs by sanitary-quarantine posts. These posts are implementing sanitary-quarantine control which is a special type of hygiene and anti-epidemiological control.

• State Inspectorate of Food Safety & Veterinary Services; • State Inspectorate for Plant Quarantine & Farming under the Ministry of Agriculture; • Sanitary Inspection under the Ministry of Health. • State Migration Service.

10 Guidelines for Integrated Border Management in European Commission External Cooperation 2010. Schengen visa catalogue 2009: http://www.schengen.mira.gov.ro/English/Documente/utile/catutil/Updated%20EU%20Schengen%20Catalogue.pdf -.

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Georgia: The Georgian State borders are managed by: Patrol Police Department, Border Police and Revenue Service

• The Patrol Police Department (PPD), responsible for border checks at the BCPs, air and sea ports; Tasks of the Patrol Police Department at the border are as follows:

Border-migration control at the border crossing points; To inspect the citizens of Georgia and foreigners on the state border check points of

Georgia; To observe and control the legal regime of the Georgian state border; To Prevent, reveal and eliminate trans-border organized crime and irregular migration,

trafficking in human beings, smuggling of drugs, weapons, explosive devices and the movement of means of nuclear materials and other activities as defined by the legislation;

PPD is authorized to issue the National Visa on the state border. Acts as the competent authority in the implementation of EU-Georgia Re-admission

Agreement. • The Border Police (BP) also part of the MIA, whose tasks and responsibilities are

related to “Green” & “Blue” border surveillance within the Ministry of Internal Affaire; • Revenue Service through the Customs Border Protection Department is globally in

charge of all border control related operations. The Revenue Service carries out customs functions, as well as border documentary checks on drivers of vehicles at modernised BCPs. Georgia Revenue Service is responsible for the control of dual-use goods, drugs, weapons, explosive devices, nuclear materials; sanitary and phyto-sanitary control; control of the endangered species of wild fauna and flora. Georgia Revenue Service is responsible for the maintenance of the BCP infrastructure.

• State Commission on Migration (established in 2010): in charge of coordination of all migration related matters and Chaired by the Ministry of Justice.

All the listed beneficiaries are directly concerned with and responsible for the border management. Thus, the support in capacity building will directly have a positive impact on their everyday activities related to the safe and easy crossing of the Georgia-Armenia Sadakhlo/Bagratashen BCP. The relevant institutional framework and the organisation capacity in the respective authorities of both countries was identified during the pre-assessment period, providing for good possibility to consider the local commitment to the project and ownership of the process as well as outcomes of it sufficient for the planning and implementation. In addition, the commitment and the ownership of both governments has once again been confirmed with the active cooperation and communication with regard to the present initiative within the Eastern Partnership, confirmed by a number of the respective correspondence within the preparatory phase. The final target groups of this action will be passengers and the economic actors crossing the border legally. Specific attention should be provided to persons in need of special protection, including asylum seekers, potential victims of human trafficking and unaccompanied minors.

4. IMPLEMENTATION ISSUES

4.1. Method of implementation

The project will be implemented under joint management through the signature of a contribution agreement with the United Nations Development Programme (UNDP) in accordance with Article 53d of the Financial Regulation. UNDP complies with the criteria provided for in the applicable Financial Regulation and is covered by a framework agreement concluded with the Commission (Financial and Administrative Framework Agreement - FAFA).

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The choice of UNDP is justified by the fact that on request of the Armenian Government UNDP agreed to act as the operator of the whole MBBG project and has to ensure the coordination of project activities with other upcoming projects in IBM area, as well as the effective management of resources coming from various International Financing Institutions (IFIs). Furthermore UNDP has significant expertise and experience in the area of Border Management projects, particularly UNDP implements EU financed “Supporting Integrated Border Management in the South Caucasus Programme” (SCIBM). Therefore, signature of an agreement with UNDP will ensure best possibility for efficient coordination with other MBBG activities. The change of management mode constitutes a substantial change except where the Commission "re-centralises" or reduces the level of tasks previously delegated to the beneficiary country, international organisation or delegatee body under, respectively, decentralised, joint or indirect centralised management.

4.2. Procurement and grant award procedures

All contracts implementing the action are awarded and implemented in accordance with the procedures and standard documents laid down and published by the relevant International Organisation.

4.3. Budget and calendar

The total cost of the project is likely to be EUR 4,300,000 of which EUR 3,582,500 will be contributed by the EU and EUR 717,500 by the beneficiary countries (EUR 434,100 by Armenia and EUR 283,400 by Georgia). The indicative budget breakdown is as follows:

Service contracts

(preparation of tenders, capacity building/trainings, administrative costs including ex-ante and ex-post evaluation, audit and visibility)

EUR 600,000

Works contracts EUR 800,000

Supply contracts EUR 2,900,000

A detailed action budget will be subject of later agreement between the European Commission and UNDP. The signature of the contribution agreement is foreseen to take place in the second quarter of 2013 and the indicative foreseen operational duration of the project is foreseen to be 50 months from the signature of the contract.

4.4. Performance monitoring

Throughout the implementation period, the project’s progress will be monitored by UNDP in accordance with its standard procedures and against the benchmarks defined in the contribution agreement. In addition, performance shall be subject to external monitoring (ROM monitoring), taking into consideration the following: the conclusion of the bilateral country cooperation agreement; bi-annual reviews of the implementation of ENP Action Plans; programme preliminary, mid-term and final assessment reports; assessment reports by governments and international organisations; statistics on detected cross-border crimes; reports of field visits to Bagratashen-Sadakhlo BCPs; assessment and monitoring studies indicating an increased efficiency observed by target groups; programme's final evaluation, final programme report.

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4.5. Evaluation and audit

Evaluation and audit will be subject to provisions set out in the framework agreement signed with the international organisation (FAFA). In line with the FAFA, financial transactions and financial statements shall be subject to the internal and external auditing procedures laid down in the Financial Regulations, Rules and Directives of the United Nations Development Programme.

4.6. Communication and visibility

A comprehensive visibility plan in compliance with the Communication and Visibility Manual for EU External Actions will be defined and implemented by the future contractor as part of its activities, in close collaboration with the EU. That visibility plan may include (indicative list): like production of posters, billboards, leaflets, warning messages, press conferences, briefings for media, publication in appropriate media (TV, website, press releases, etc.). Where applicable, the provisions included in the framework agreement signed with the international organisation will apply.

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Annex 2 - ENPI Regional Action Programme 2012 – part 2

1. IDENTIFICATION

Title/Number Eastern Partnership Integrated Border Management Flagship Initiative "Support for the creation of an electronic system of pre-arrival information exchange between the customs authorities of the Republic of Belarus and Ukraine" pilot project

CRIS: ENPI/2012/023-795

Total cost Total (indicative): EUR 4,289,444

EU contribution: EUR 3,667,000

IOM joint co-financing: EUR 70,000 (indicative)

Contributions of beneficiary countries: Republic of Belarus: EUR 244,444 (indicative) Ukraine: EUR 308,000 (indicative)

Aid method / Method of implementation

Project approach – joint management with the International Organisation for Migration (IOM)

DAC-code 33120 Sector Trade facilitation

2. RATIONALE

2.1. Sector context Background:

This Action Fiche (AF) is based on the "Study for an Eastern Partnership Integrated Border Management - Flagship Initiative project"11, which identified six project proposals for funding. A pre-selection panel of Commission services reviewed the proposals. This intention was reiterated during the Fourth and the Fifth IBM Flagship Panel meetings in Vilnius and Tbilisi in 2011, on the condition that beneficiaries provide co-financing for projects which will be financed under the programme's 2012 and 2013 budgets.

This intervention is also based on a short-term Lithuanian-Ukrainian pilot project implemented in 2009 whose basic aim was to test the feasibility of the use of electronic procedures for the movement of goods in transit from Ukraine via Belarus to Lithuania (and in the opposite direction).

In addition to their day-to-day contacts, the EU Delegations in Kiev and Minsk organised two meetings with the customs authorities in both beneficiary countries, which were dedicated to the formulation of this intervention. The intention of these meetings in December 2011 and February 2012 was twofold: to verify whether the ideas put forward in the study (see first paragraph) were still valid and to achieve the highest degree of ownership by beneficiary institutions.

The main idea of this project is to help Belarus and Ukraine create an electronic system of pre-arrival information exchange between the customs authorities of the two countries.

11 CRIS contract no. 224-714.

15

This intervention will consist of two major components: provision of services (mainly study visits and training sessions) and equipment supplies (details of the technical specifications will be identified during the project's inception phase).

Sector context:

Both governments expect increased cross-border trade levels in the coming years. According to Belarusian statistics, the number of vehicles crossing this border increased by 34.8% in the period 2009-2011 (by 13.7% from 2010 to 2011). Currently, the average time a truck standing at the border is slightly more than 7.5 hours. Despite the fact that no increase of staff working at border crossings are planned in the future, the expectations by the State Customs Committee of the Republic of Belarus (SCC RB) are that the processing time of trucks would go down to 2 hours as soon as a system of pre-arrival information exchange is introduced.

While trade flows at the Belarusian-Ukrainian border are not as significant as at other borders of the region, in particular from an Ukrainian perspective12, it is important to mention that the border crossing points Novaya Huta (Belarus) / Novi Yarylovychi (Ukraine) and Vesyalouka (Belarus) / Senkivka (Ukraine) are located along the Trans-European transportation corridor IX (Helsinki - St. Petersburg - Moscow/Pskov - Kiev-Chisinau – Bucharest – Dimitrovgrad - Alexandropolis) and its branch corridor IXB (Kaliningrad/Klaipeda/Kaunas – Vilnius – Minsk - Kiev).

The strategic focus of the SCC RB was greatly redefined in recent years by the creation of the Customs Union in 2010, which lead to the introduction of one joint customs tariff, one joint commodity terminology as well as joint lists of goods to which the same import and export restrictions are applied in the three participating countries13. Further, joint customs declaration forms were unified similar to those used in the EU, and checks on the borders between the three states were entirely abolished in July 2011.

The strategic orientation of the State Customs Service of Ukraine (SCS UA) is defined by (1) the negotiation process of the EU and Ukraine on a free trade agreement as part of a future Association Agreement, which, if signed, will cover all trade-related areas (including customs), as well as by (2) Ukraine's obligations as regards the harmonisation of customs procedures to which the country has committed itself when joining Revised Convention on Harmonisation and Simplification of Customs procedures (Kyoto Convention). Discussions with SCS UA representatives also disclosed the importance of the Integrated Border Management (IBM) principles and EU customs blueprints14 for the Ukrainian government.

Cooperation between Belarus and Ukraine in this specific area is based on the "Protocol on Information Exchange between the SCC RB and the SCS UA as regards Goods and Transport Vehicles Crossing the Customs Border of the Republic of Belarus and Ukraine", which entered into force on 12 September 2004.

2.2. Lessons learnt

• For the time being there have been four Result-Oriented Monitoring (ROM) exercises on national Belarusian projects in the area of border management15, the conclusions of which were positive. A sector evaluation in Belarus will be carried out in spring 2012.

12 For Ukraine, the most important border as regards arriving and departing goods are the ports in Odessa and

Illichivsk. 13 Belarus, Kazakhstan and Russia 14 = Practical guidelines laying down clear criteria against which a customs administration is able to measure its

own operational capacity 15 The project "Border Management in Belarus 1" (BOMBEL 1) was monitored three times and BOMBEL 2 once.

16

• In Ukraine, EU Border Assistance Mission to Moldova and Ukraine (EUBAM) was the only border management project which was monitored in the recent past. Also this project received good marks.

• Lessons learned from previous assistance provided in this area include:

- A regional approach provides coherence and encourages harmonisation of global procedures among beneficiary countries. - Assistance projects have to be tailor-made, and needs have to focus on each country’s specific requirements. - This intervention is a logical continuation of a short-term pilot project implemented in Ukraine and Lithuania in 2009. - Assistance in a particular area needs a mid- to long-term perspective. "One-shot" interventions, implemented over a short period of time lack sustainability. - The provision of equipment has to be linked to training sessions dedicated to the equipment's use.

Reference is also made to the European Court of Auditors Special Report No. 9 of 2008 "The Effectiveness of EU Support in the Area of Freedom, Security and Justice for Belarus, Moldova and Ukraine" which confirms "satisfactory achievements" in the area of border management.

2.3. Complementary actions In Belarus, the SCC RB has become one of the biggest recipients of EU-funding under two Cross-Border Cooperation (CBC) programmes. In 2012-2013, the CBC will support the reconstruction of four border crossing points at the Belarusian-Polish, Belarusian-Lithuanian and Belarusian-Latvian borders (accumulated EU contributions amount to EUR 18,350,000). Also in Ukraine, the SCS UA and the Border Guards Service receive significant CBC funds for infrastructure and supplies investments at eight border crossing points at the Polish-Ukrainian and Romanian-Ukrainian borders (accumulated EU contributions: EUR 21,868,000).

The European Union Border Assistance Mission to Moldova and Ukraine (EUBAM) was launched in November 2005 following a request made jointly by the presidents of Moldova and Ukraine to the European Commission. By offering comprehensive support to the two beneficiary countries on EU best practice from its headquarters in Odessa and six field offices on either side of the Moldovan-Ukrainian border, EUBAM envisages that border and customs procedures will ultimately mirror those prevalent in the EU. In this context, it is worth mentioning that this financially most significant project in the area of freedom, security and justice of the EU was commended in the above mentioned Court of Auditors report as contributing "greatly to building capacity in the Moldovan and Ukrainian border guard and customs services".

The EU Agency Frontières Extérieures (FRONTEX) has bilateral working arrangements on the establishment of operational cooperation with the relevant authorities of Belarus and Ukraine. According to these arrangements, cooperation focuses geographically on external EU borders and thematically on the exchange of information and experience, risk analysis, joint operations, training, joint activities and secondment of border guards to EU Member States units responsible for border control. FRONTEX does not provide equipment to the two beneficiary countries.

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Joint Research Centre (JRC): A two-phased regional Instrument for Stability project16 (EUR 11,700,000) focuses activities on the detection of nuclear and radioactive materials at borders, inter alia, through the provision of portable radiation monitors and mobile laboratories.

The "Transport Corridor Europe-Caucasus-Asia" (TRACECA) is an EU funded assistance programme involving the European Union and 13 countries of the Eastern European, Caucasus and Central Asian regions. Currently there are four on-going projects aiming at supporting the approximation of these countries to EU norms and standards and improving their transport infrastructure on the corridor. In parallel to this, TRACECA is a political process, based on the Basic Multilateral Agreement signed in Baku (Azerbaijan) in 1998. The implementation of this agreement is undertaken by the Intergovernmental Conference and the TRACECA Permanent Secretariat in Baku, financially supported by the parties to the Basic Multilateral Agreement. Lithuania: In 2009, the Customs Department under the Ministry of Finance of the Republic of Lithuania (CD RL) completed a small-scale pilot project designed to, inter alia, help the SCS UA build up the capacity to exchange transit data according to requirements of a computerised transit system. The transit-related part of this programme was mainly focused on Ukraine’s ability to obtain pre-arrival data on goods bound to/coming from Ukraine. It is worth mentioning that the project introduced EU standards with respect to the development and processing of transit declarations for the first time in Ukraine.

International Centre for Migration Policy Development (ICMPD): The two-year Integrated Border Management (IBM) Flagship Initiative Training project under the Eastern Partnership was launched in January 2011 ("IBM FIT"; budget: EUR 2,000,000). Activities in its six beneficiary countries17 focus on inter-institutional dialogue, awareness-raising on IBM, the fight against corruption, and support to the establishment of modern training systems.

In Ukraine, the International Organization for Migration (IOM) is implementing a number of projects. Several significant initiatives, dealing with human resources18 and the development of risk assessment and criminal analysis systems (ARCA) within the State Border Guard Service of Ukraine, are realised in cooperation with the Polish Border Guards and the Hungarian National Police and funded by the United States.19 In Belarus, IOM is currently involved in two EU-funded migration and border management projects20 benefitting, inter alia, the SCC RB and the border guard service. In the recent past, IOM was (and sill is) also involved in three additional major EU-funded border management interventions in the Western Balkans and Russia.21

16 "Combating illicit trafficking of nuclear and radioactive materials in Former Soviet Union (FSU) countries

(Russian Federation, Ukraine, Armenia, Moldova, Georgia, Azerbaijan and Belarus)" and "Combating illicit trafficking of nuclear and radioactive materials in selected FSU and Mediterranean Basin countries and preparation of border management activities in ASEAN region"

17 Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine 18 "Reinforcing the State Border Guard Service of Ukraine’s Human Resources Management System" and

"Improving Integrated Border Management: Follow-up to the project Reinforcing the State Border Guard Service of Ukraine Human Resources Management" (HUREMAS and HUREMAS 2)

19 IOM Ukraine is currently implementing the following US-funded projects: (1) "Development of European Compliant Risk Assessment and Criminal Analysis Systems for the State Border Guard Service – Ukraine (ARCA)", (2) "Strengthening the State Border Guard Service of Ukraine’s Risk Analysis and Criminal Analysis Training Systems (ARCA 2)", (3) "Strengthening the State Border Guard Service of Ukraine’s Integrated Approach to EU-Compliant Training Standards - Phase I (ITP-1)", (4) "Strengthening the State Border Guard Service of Ukraine’s Integrated Approach to EU-Compliant Training Standards - Phase II (ITP-2)", and (5) "Improving Operational Management of Field Divisions at the State Border Guard Service of Ukraine (Border Divisions)".

20 (1) "Strengthening Protection Capacity in Belarus – Phase 2" (main contractor: UNHCR); (2) "Strengthening Surveillance Capacities of the at the 'Green' and 'Blue' Border of the Republic Belarus and Ukraine"

21 (1) " Strengthening IBM in Western Balkans and Turkey" (ended in 2011); (2) Enhancement of Management of the Russian Federation Border Checkpoints (on-going).

18

On-going activities in the area of trafficking and criminal use of Chemical, Biological, Radiological and Nuclear materials (CBRN) conducted by the "CBRN Centres of Excellence (CoE)" and funded under the Instrument for Stability - There is a CBRN CoE South East Europe/South Caucasus/Ukraine/Moldova.

2.4. Donor coordination Given the very low number of donors active in this area, donor coordination in Belarus in the sphere of border management (including customs) is limited to ad-hoc meetings, often held in bilateral format. The specific circumstances in that country have resulted in making the European Commission the main donor in the IBM area and giving it a major position vis-à-vis the SCC RB with which cooperation has developed well in recent years. In Ukraine, the Government-led donor coordination process is not working at full capacity. Therefore, the Delegation regularly consults with the main actors, such as IOM, UNHCR, USAID and the customs liaison officers of EU embassies. In addition, EUBAM coordinates closely its training activities with other donors in the field.

3. DESCRIPTION

3.1. Objectives Overall objectives:

- To help increase trade turnover levels in the Eastern Partners and adjacent EU Member States - To help reduce smuggling levels, in particular, of cloth, food, car spare parts, cigarettes and alcohol - To contribute to the development of Corridor IX of the Pan-European Transport Corridors "Helsinki / Klaipeda (Lithuania) - Alexandroupolis (Greece)"

Purpose:

To help reduce processing time by customs services working at the Belarusian-Ukrainian border.

3.2. Expected results and main activities This project aims at supporting Belarus and Ukraine in creating an electronic system of pre-arrival information exchange between the customs authorities of the 2 countries.

Expected results:

- Time required to carry out customs formalities reduced - System of automated risk analysis and risk-based conduction of inspections fully introduced - Corruption and customs fraud levels through the application of paperless technologies reduced by minimising the influence of the human factor - Processes performed at border crossings approximated to integrated border management (IBM) standards and requirements - Movement of licit goods and means of transport across the borders and along Corridor IX of the Pan-European Transport Corridors facilitated

Main activities:

- Qualitative analysis at the beginning and at the end of project implementation on trade flows and smuggling of goods - Preparation of technical specifications and other necessary tender documents - Procurement of equipment

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- Practical training on the use of technical equipment - Exchange of experience as regards the involvement of stakeholders such as freight forwarders and other representatives of the business community - Study visit(s) on the involvement of stakeholders of the private sector - Joint Belarusian-Ukrainian seminars and training sessions on pre-arrival info exchange and involvement of stakeholders of the private sector - Visibility activities

3.3. Risks and assumptions

• Risks:

• - Corruption spreading among customs officials will undermine the expected results of this actions (medium risk)

• Mitigation measure: The EU-funded Sector Budget Support on Border Management in Ukraine will be supplemented by a series of accompanying measures, including monitoring activities related, inter alia, to fight corruption. Corruption levels in Belarus are generally lower. However, it is suggested to include anti-corruption training as a horizontal topic in project activities.

- The counterparts may not fully endorse (or take considerable time when endorsing) programme activities (low risk)

• Mitigation measure: Experience shows that the timely involvement of beneficiaries in project activities is the best way to address this risk.

- Trained personnel may leave project beneficiary institution (low risk)

• Mitigation measure: The risk of staff fluctuations in Belarus and Ukraine is lower compared to other parts of the world. However, the best way to address this matter is to involve significant numbers of beneficiary representatives in project activities.

• Assumptions:

• - There is a commitment and interest from the two beneficiary countries’ administrations to share information, harmonise procedures/systems/practices amongst each other in accordance with EU standards and/or project recommendations.

• - The two beneficiary countries will make sufficient numbers of appropriate qualified personnel available for training events and other activities

• - Trainees, who have received training in the framework of this intervention, will keep working in the institution for sufficient time so that the skills and knowledge obtained can be properly applied and transferred to colleagues.

3.4. Cross-cutting Issues

• Improving good governance (particularly ownership, equity, transparency and anti-corruption) by strengthening the partner countries' capacities in the sphere of customs procedures in general is the main gist of this intervention.

• The expected long-term impact is to contribute to the strengthening of good neighbourly relations and the facilitation of legal trade by encouraging dialogue between different levels of the two state administrations and trade forwarders.

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Special attention will be given in the project design to ensure a high level of women's participation in project activities such as seminars, workshops and study visits.

3.5. Stakeholders

• The customs authorities of Belarus have about 5000 employees. Currently, this Belarusian service is administratively divided into 9 "Customs Houses" (one in each territorial entity, Minsk international airport and HQ in Minsk). Customs officers are located at 25 road border crossing points (BCPs), 13 BCPs at railway stations, 7 international railway transfer stations, 7 BCPs at airports and 3 BCPs at river ports. Budgetary funding to this service by the government appears to be stable over the past years. As stated earlier, the strategic focus of the SCC RB changed significantly by the creation of the Customs Union (CU) between Belarus, Kazakhstan and Russia in 2010. Apart from further harmonisation efforts linked to the formation of the CU (see section 2.1), the creation of a second22 pre-arrival info exchange system appears to be one of the government's main priorities in the coming years (see National Programme on Accelerated Development of Services in the Sphere of Information and Communication Technologies 2011-2015, sub-section "Electronic Customs"). Currently, the government's customs policy is very much focussed to further reduce the processing time of goods shipped into, through and/or out of the country at Belarusian border crossing points.

• The SCS UA has started the implementation of the "Strategy for the Development of the SCS UA in 2010-2015". This strategy identifies conceptual principles for the formation and realisation of customs affairs in Ukraine. Currently the SCS UA has approximately 17,300 employees, 1000 less than in 2010 when the reform process started. This number will go down to about 16,500 staff members in the coming years. These decreases are mainly linked to the introduction of electronic processing systems at border crossings and central levels. Customs officers work at 183 border crossing points. There are 27 customs houses and 255 customs clearance offices located all over the country. The SCS UA, contrary to the SCC RB and many other customs services in Europe, does not have investigative powers, since these functions are with state prosecutors' offices and the State Security Service (SBU). It is important to mention that the SCS UA is a major contributor to the state budget.

The final target groups of this action will be economic actors that cross borders legally.

4. IMPLEMENTATION ISSUES

4.1. Method of implementation

The project will be implemented under joint management through the signature of a contribution agreement with the International Organisation for Migration (IOM) in accordance with article 53d of the Financial Regulation. The international organisation complies with the criteria provided in the Financial Regulation and is covered by a framework agreement signed in November 2011.

The decision to propose IOM is based on the following considerations:

- There are very few other international organisations which are permanently present in both beneficiary countries and which have expertise in customs projects;

22 For the time being, Russia is the country's only neighbour with which Belarus has already developed such a

system.

21

- IOM can build on its long-term relationship with project beneficiaries, something that is particularly important in Belarus; - Due to its extensive experience in implementing projects in the region, it can be assumed that project activities will start soon after the adoption of the Financing Decision; this experience is particularly valuable in Belarus where project registration procedures with the Ministry of Economy are rather complicated and time-consuming; - IOM has successfully implemented several projects funded by the EU in the recent past (in Ukraine in particular); - Experience shows that IOM is a flexible project implementer, usually taking the donor organisation's suggestions and ideas fully on board.

IOM will implement the project in partnership with the International Centre for Migration Policy Development (ICMPD), which does not have a representation office in Minsk. This cooperation between the two international organisations is suggested for the following reasons:

- Being the implementer of the ongoing IBM Flagship Initiative Project (IBM FIT), ICMPD is best placed to ensure full coherence between the two projects; - ICMPD will bring its extensive experience in border management and IBM into the project; - ICMPD is more likely to contribute to EU visibility than IOM due to the fact that almost all ICMPD member states are also EU Member States.

ICMPD's input in project activities will be threefold: the organisational and content-wise supervision of study visits in Europe, provision of specific expertise for seminars and workshops in the beneficiary countries complementing IOM's experts data base, and main responsibility for ensuring coherence with other IBM Flagship projects in the region.

The change of management mode constitutes a substantial change except where the Commission "re-centralises" or reduces the level of tasks previously delegated to the beneficiary country, international organisation or delegated body under, respectively, decentralised, joint or indirect centralised management.

4.2. Procurement and grant award procedures All contracts implementing the action are awarded and implemented in accordance with the procedures and standard documents laid down and published by the relevant International Organisation.

4.3. Budget and calendar The total cost of the project is likely to be EUR 4,289,444 of which EUR 3,667,000 will be contributed by the EU, EUR 70,000 (indicatively) by IOM as a joint co-financing and EUR 552,444 (indicatively) by the beneficiary countries.

Costs for visibility activities will be covered by the budget of the Contribution Agreement.

Indicative signing date of Contribution Agreement Contract: 3rd quarter of 2013

Indicative foreseen operational duration of project is up to 36 months from the signature of the contract.

4.4. Performance monitoring

• Performance monitoring:

The project is expected to be subject to external monitoring (ROM monitoring).

22

• Indicators:

- Signature of a Contribution Agreement by the EU Delegation by 3rd quarter of 2013 - Qualitative analysis on trade flows and smuggling of goods at the beginning and at the end of project implementation

• - Delivery of the training sessions / seminars / conferences / workshops as stipulated in the Description of the Action concerning timing, quantity and quality

- Delivery of the equipment as stipulated in the Description of the Action concerning timing, quantity and quality

Role and set up of the assistance of a technical nature: The international organisation will arrange steering committee meetings, indicatively to be organised on a quarterly basis, with participation of representatives of both beneficiary countries and the EU Delegation(s). The basic aims of these meetings will be to regularly review progress made on project implementation and to ensure the highest degree of ownership by both beneficiary countries.

4.5. Evaluation and audit The project design will benefit from the conclusions of a sector evaluation of EU-funded border management projects, which were implemented in Belarus over the past 5-6 years, in spring 2012.

Where applicable, the provisions included in the framework agreement signed with the international organisation will apply.

4.6. Communication and visibility A comprehensive visibility plan in compliance with the Communication and Visibility Manual for EU External Actions will have to be defined and implemented, in close collaboration with the EU Delegation in charge, by the future contractor as part of its activities. That visibility plan may include (indicative list): press conferences, briefings for media, publication in appropriate media (TV, website, press releases, etc.).

Where applicable, the provisions included in the framework agreement signed with the international organisation will apply.

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Annex 3 - ENPI Regional Action Programme 2012 – part 2

1. IDENTIFICATION

Title/Number ENPI-East Global Allocation

CRIS: ENPI/2012/23806

Total cost EUR 6 million

Aid method / Method of implementation

Project approach

- Direct centralised management

DAC-code 43010 Sector Multisector aid 2. RATIONALE

2.1. Sector context

The ENPI-East Global Allocation 2012 is a mechanism giving the European Commission a possibility to decide on the financing of small-scale actions in line with the objectives of the Eastern dimension of the European Neighbourhood and Partnership Instrument (ENPI) as well as its operational and policy priorities.

Based on the ENPI Regulation23, and in particular Article 16 "Support measures" thereof, the ENPI-East Global Allocation 2012 provides funding directly necessary for the implementation of the ENPI Regulation and for the achievement of its objectives.

This project to be financed in the present Action Programme will therefore support the preparation, follow-up, monitoring, auditing and evaluation of country and multi-country programmes as well as activities in the field of information and communication.

2.2. Lessons learnt

Given the support nature of previous and current Global Allocations, past actions are assessed against the level of consumption of committed funds. This is one of the criteria, along with priorities and needs, taken into account in the initial programming, as well as in the planning exercise once the Decision is adopted.

2.3. Complementary actions

Global Allocation can be considered as a complementary action to the Technical Assistance allocations existing in the frame of the bilateral Annual Action Programmes.

2.4. Donor coordination

The Global Allocation is not directly subject - by its support nature - to donor coordination.

23 ENPI Regulation 1638/2006 of 24/10/2006

24

3. DESCRIPTION

3.1. Objectives

The objective of the ENPI-East Global Allocation 2012 is to support the preparation of country and multi-country programmes in the eastern neighbourhood (support for the project management cycle) and activities in the field of information and communication.

3.2. Expected results and main activities

The ENPI-East Global Allocation 2012 will be used as a framework to finance activities in the following fields:

Component 1 - Support to project cycle management

This component includes activities linked to:

- identification and formulation of projects that may result in funding from ENPI East (e.g. sector studies, country or region studies, studies on cross-cutting issues or in specialised areas, preparatory activities, etc.),

- other small-scale activities to back up major projects during their implementation,

- audit and evaluation / impact assessment of projects for which financing of such activities could not be foreseen due to the N+1 rule, or is no longer available.

Component 2 - Information and communication activities

This component covers activities linked to:

- information and raising awareness activities about the European Neighbourhood Policy and the Eastern Partnership, designed and implemented to enhance the visibility of EU-funded activities and improve the understanding of EU cooperation policies in each ENPI East country.

The indicative budget for both components is EUR 6 million.

3.3. Risks and assumptions

Given the nature of the action, no major risks are identified.

3.4. Crosscutting Issues

Not applicable

3.5. Stakeholders The action is designed to support the staff managing the EU cooperation programmes in the field and in the headquarters. The end beneficiaries are citizens of the partner countries as a whole.

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4. IMPLEMENTATION ISSUES

4.1. Method of implementation

Direct centralised management by means of service contracts and grant contracts

4.2. Procurement and grant award procedures

Where the action is in the sole interest of the Beneficiary, contracts must be awarded and implemented in accordance with the rules set out in Part Two, Title IV, "External Relations" of the Financial Regulation applicable to the general budget of the EU, completed by rules of Part One, Titles V and VI when so provided by Part Two, Title IV.

Where the action is in the shared interest of the Beneficiary and of the Commission, or in the sole interest of the Commission, contracts implementing the action must be awarded and implemented in accordance with the rules set out in Part One, Titles V and VI of the Financial Regulation applicable to the general budget of the EU.

Irrespective of the procedure used, the authorising officer may decide to use the Commission's (DG Development and Cooperation – EuropeAid) standard contract templates, adapted as may be necessary.

Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by the ENPI Regulation. Further extensions of this participation to other natural or legal persons by the concerned authorising officer shall be subject to the conditions provided for in 21(7) ENPI.

Specific rules for grants

The essential selection and award criteria for the award of grants are laid down in the Practical Guide to contract procedures for EU external actions. They are established in accordance with the principles set out in Title VI 'Grants' of the Financial Regulation applicable to the general budget. When derogations to these principles are applied, they shall be justified, in particular in the following cases:

− Financing in full (derogation to the principle of co-financing): the maximum possible rate of co-financing for grants is 80%. Full financing may only be applied for actions implemented in the sole interest of the Beneficiary and in the cases provided for in Article 253 of the Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the General Budget.

− Derogation to the principle of non-retroactivity: a grant may be awarded for an action which has already begun only if the applicant can demonstrate the need to start the action before the grant is awarded, in accordance with Article 112 of the Financial Regulation applicable to the General Budget.

4.3. Budget and calendar

The total budget for this action is EUR 6 million.

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Contracts can be financed under Global Allocation as soon as the Commission decision is adopted, until 31 December 2013 in accordance with the N+1 rule.

The operational duration is indicatively 48 months from the date of signature of the contracts.

4.4. Performance monitoring The monitoring of the implementation and further needs will be carried out through periodic assessment of progress and delivery of results.

4.5. Evaluation and audit

Where provided for in the applicable general conditions, certification of expenditure will have to be submitted as part of the contracts implementing this Decision. Evaluations of the results achieved by some of the projects financed under this decision may be done by external experts hired by the European Commission as well as external audits at the initiative of the Commission, if necessary.

4.6. Communication and visibility Communication and information activities are an integral part of the action, aiming at enhanced visibility and better understanding of EU-funded activities in the eastern neighbourhood. The Communication and Visibility Manual for EU External Actions will be respected and followed to ensure the visibility coherence.

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Annex 4 - ENPI East Regional Action Programme 2012 Part 2

1. IDENTIFICATION

Title/Number Support for regional programmes (multilateral dimension of the Eastern Partnership, Black Sea Synergy and Northern Dimension)

CRIS: ENPI/2012/23882

Total cost EUR 10 million

Aid method / Method of implementation

Project approach:

- Direct centralised management

- Joint management with the United Nations Development Programme (UNDP)

- Indirect centralised management with the Education, Audiovisual and Culture Executive Agency

DAC-code 43010 Sector Multisector aid 2. RATIONALE

2.1. Sector context

The support for the multilateral dimension of the Eastern Partnership, Black Sea Synergy and Northern Dimension is a flexible mechanism giving the European Commission the possibility to decide on the financing of small-scale actions in line with the objectives of the eastern dimension of the European Neighbourhood and Partnership Instrument (ENPI) as well as its operational and policy priorities. As in previous years, the proposed action for 2012 has also taken into account the Eastern Partnership initiative launched by the European Union to deepen cooperation with its Eastern neighbours.

Based on the ENPI Regulation24, the ENPI-East Support for regional programmes (the multilateral dimension of the Eastern Partnership, Black Sea Synergy and Northern Dimension) provides funding directly necessary for the implementation of the ENPI Regulation and for the achievement of its objectives.

This action to be financed in the present Action Programme will support the operation of the Eastern Partnership multilateral dimension, the Black Sea Synergy, and in particular its Environmental Partnership, and the Northern Dimension, e.g. support activities primarily related to the functioning of the Eastern Partnership platforms and in support of the Black Sea Synergy and the Northern Dimension.

2.2. Lessons learnt

Experience of the Eastern Partnership multilateral dimension has shown so far that maintaining a certain level of flexibility as regards the original planning of activities is necessary to take account of developments of the work programmes of the Eastern Partnership Platforms throughout the year.

24 ENPI Regulation 1638/2006 of 24/10/2006

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When it comes to concrete activities in the field, meetings held in the framework of the Black Sea Environment Partnership identified monitoring as one of areas of focus for the Environmental Partnership. Despite a number of monitoring activities, some gaps continue to exist, and additional activities could address those issues.

2.3. Complementary actions

This action can be considered as complementary to the Technical Assistance allocations existing in the frame of the bilateral Annual Action Programmes.

2.4. Donor coordination

The multilateral dimension of the Eastern Partnership entails by its own nature close coordination with EU Member States and partner countries in the framework of the Platforms and related panels. Other donors/entities are also represented in the Platforms (e.g. Council of Europe, OSCE, Committee of the Regions, etc).

In the framework of the Black Sea Synergy donor coordination is ensured through bilateral regular exchange of information among implementing agencies (especially UNDP, UNECE, and ENVSEC) about ongoing activities which results in a division of labour aiming at creating synergies between different interventions. Regional actors such as the Black Sea Commission are also involved as facilitators in activities aiming at improving the environmental status of the Black Sea and advocate for a strong involvement of all riparian countries and the use of similar shared methodologies to address existing problems.

3. DESCRIPTION

3.1. Objectives

The objective of this action is to advance the implementation of the multilateral dimension of the Eastern Partnership and of the Black Sea Synergy and the Northern Dimension.

3.2. Expected results and main activities

This action covers activities organised mainly in the framework of the Eastern Partnership, as well as of the Black Sea Synergy, in particular the Environmental Partnership, and the Northern Dimension.

As part of the operational structure of the Eastern Partnership, the Commission Communication on the Eastern Partnership sets out the establishment of four thematic platforms, according to the main areas of cooperation, and of panels to support the work of the platforms in specific areas.25 In their work programmes, the platforms may also identify further seminars, training programmes or studies to be implemented in order to advance the objectives of the Eastern Partnership. Capacity building activities may also be implemented in support to the Flagship initiatives launched under the Eastern Partnership. Furthermore, additional activities may be carried out in order to support the implementation of the Eastern Partnership roadmap (for example, policy

25 The following panels have so far been established in the framework of the Eastern Partnership: Fight against

Corruption; Integrated Border Management; Environment and Climate Change; Trade and Trade Related Regulatory Cooperation linked to deep and Comprehensive Free Trade Areas (DCFTA); Transport; Migration and Asylum; Improved Functioning of Justice; Public Administration Reform.

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reviews or technical assistance, in cooperation with FAO, in the framework of the European Neighbourhood Programme for Agriculture and Rural Development).

Priority actions such as the ones outlined in the Commission Communication on the "EU and its neighbouring regions: A renewed approach to transport cooperation" from 7 July 2011 and the Communication on "Cooperation in the area of justice and home affairs within the Eastern Partnership" issued on 26 September 2011 may also be supported in the framework of the multilateral dimension of the EaP.

In the context of Eastern Partnership Platform 4 ("Contacts between people"), the Commission proposed to extend eTwinning programme to the Eastern Partnership countries. eTwinning allows teachers from all participating countries to use the eTwinning online tools to find partner schools, meet virtually and exchange ideas and best practices. In this phase, the programme will only partially be extended to the Eastern Partnership schools, i.e. teachers from partner countries will only be able to join existing projects, will not be able to initiate projects themselves and will be able to contact only those EU teachers who have clearly expressed their interest in cooperating. The partial extension will be carried out on a pilot basis and if it proves to be successful, eTwinning may entirely open to Eastern Partnership schools at a later stage .

To ensure involvement of civil society in the Eastern Partnership initiative, the European Commission provided also for the establishment of an Eastern Partnership Civil Society Forum, "to promote contacts among civil society organisation and facilitate their dialogue with public authorities". Meetings of the Civil Society Forum will also benefit from funding under this component.

The implementation of the Black Sea Synergy and the Northern Dimension suppose the establishment of partnerships in different areas. Activities to take place in the context of these partnerships, such as meetings, studies or technical assistance, will also rely on support from this component.

In addition, this component will cover the organisation costs of ad hoc meetings related to one or several countries to gain practical knowledge and experiences as regards transition and modernisation process in the context of the Eastern Partnership.

The indicative budget for this component is EUR 10 million.

3.3. Risks and assumptions

Given the nature of the action, no major risks are identified. Main assumption is related to the expected developments of the Eastern Partnership initiative towards closer integration with partner countries.

3.4. Crosscutting Issues

Not applicable

3.5. Stakeholders Main stakeholders are authorities and administrations of EU Member States and Eastern Partnership, Black Sea Synergy and Northern Dimension countries as well as NGOs and organised civil society. The end beneficiaries are citizens of the partner countries as a whole.

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4. IMPLEMENTATION ISSUES

4.1. Method of implementation

Direct centralised management

The programme will be implemented under direct centralised management by means of service and grant contracts.

Joint management

The Black Sea Synergy component will be implemented under joint management through the signature of a standard contribution agreement with the United Nations in accordance with Article 53d of the Financial Regulation. The most appropriate UN Agency for implementing the proposed activities appears to be the UNDP. UNDP complies with the criteria provided for in the applicable Financial Regulation and is covered by a framework agreement concluded with the Commission. UNDP is proposed because of its wide network for development assistance and advocacy to governments in developing countries. An additional asset is its long-term experience in regional cooperation in the Black Sea, in particular the implementation of the Convention for the Protection of the Black Sea (Bucharest Convention) and its monitoring related aspects. The experience and presence of this international organisation in the region could be instrumental for attaining the expected results. The amount allocated to this activity is EUR 1,500,000 indicatively. UNDP is expected to co-finance the project but the amount of this contribution is not known yet.

Indirect centralised management

Extension of the eTwinning programme to Eastern Partnership countries will be implemented under indirect centralised management in accordance with Article 54(2)(c) of the Financial Regulation. The implementing body is the Education, Audiovisual and Culture Executive Agency (EACEA)26, which already manages the eTwinning programme with the EU Member States. This is subject to the extension of the mandate of the Agency, allowing it to manage eTwinning contributions and contracts to be financed by the Union's external aid instruments.

Implementation of the partial extension of eTwinning requires the set-up of Partner Support Agencies (PSA) in each of the partner countries involved in the programme. The PSAs will be assigned by the competent national authorities (usually the Ministry of Education) in the partner countries and will be responsible for promoting eTwinning in each country, providing pedagogical and technical support to participating schools, rewarding teachers for their successful participation in eTwinning projects, organising specific training sessions for teachers and ensuring that eTwinning evolves in a way which meets the particular needs of local schools. PSAs will submit a work programme based on which they will receive an operating grant from the EACEA. The operating grants will have a duration of 15 months. The amount allocated to the operating grants is EUR 600,000 indicatively.

26 The Education, Audiovisual and Culture Executive Agency (EACEA) is a public body created by the

Decision 2005/56/EC of the European Commission adopted on 14 January 2005. The Agency's mission is to implement a number of strands of more than 15 Community funded programmes and actions in the fields of education and training, active citizenship, youth, audiovisual and culture.

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The change of management mode constitutes a substantial change except where the Commission "re-centralises" or reduces the level of tasks previously delegated to the beneficiary country, international organisation or delegated body under, respectively, decentralised, joint or indirect centralised management.

4.2. Procurement and grant award procedures

Direct centralised management

1) Contracts

All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question.

Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by the ENPI Regulation. Further extensions of this participation to other natural or legal persons by the concerned authorising officer shall be subject to the conditions provided for in Article 21(7) ENPI.

2) Specific rules for grants

The essential selection and award criteria for the award of grants are laid down in the Practical Guide to contract procedures for EU external actions. They are established in accordance with the principles set out in Title VI 'Grants' of the Financial Regulation applicable to the general budget. When derogations to these principles are applied, they shall be justified, in particular in the following cases:

- Financing in full (derogation to the principle of co-financing): the maximum possible rate of co-financing for grants is 80%. Full financing may only be applied in the cases provided for in Article 253 of the Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the General Budget.

- Derogation to the principle of non-retroactivity: a grant may be awarded for an action which has already begun only if the applicant can demonstrate the need to start the action before the grant is awarded, in accordance with Article 112 of the Financial Regulation applicable to the General Budget.

Joint management

All contracts implementing the action are awarded and implemented in accordance with the procedures and standard documents laid down and published by the international organisations concerned.

Indirect centralised management

The EACEA is responsible for the management of all actions for the extension of eTwinning to the Eastern Partnership countries under the supervision of the Commission (Directorate-General for Development and Co-operation - EuropeAid).

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All contracts implementing the action must be awarded and implemented in accordance with the rules set out in Part Two, Title IV, "External Relations" of the Financial Regulation applicable to the general budget of the EU, completed by rules of Part One, Titles V and VI when so provided by Part Two, Title IV.

4.3. Budget and calendar

The total budget for this action is EUR 10 million.

Contracts can be financed under this action as soon as the relevant Commission Decision is adopted, until 31 December 2013 in accordance with the N+1 rule.

Except for the eTwinning activity that has an indicative duration of 15 months from the signature of the contracts, the operational duration of the programme is indicatively of 48 months from the signature of the contracts/agreements.

A provisional breakdown by type of expenditure is provided below:

- Direct centralised management (procurement and grants) through services contracts and framework contracts: indicatively EUR 7.9 million. Indicatively, 2-3 services contracts are expected to be signed. The number of framework contracts will depend on the needs of Headquarters and the Delegation in Moscow (implementing Northern Dimension related activities). The services contracts will likely be signed before November 2013. - Joint management with UNDP: EUR 1.5 million

- Indirect centralised management with EACEA: indicatively EUR 600,000. The amount per grant is expected to be between 80,000 EUR and 160,000 EUR for a duration of 15 months. The amounts are indicative at this stage, depending on the work programme submitted by the Partner Support Agencies to the European Commission and EACEA. The Partner Support Agencies are assigned by the competent national authorities (usually the Ministry of Education) in the partner countries. The European Commission has already received information from partner countries regarding the bodies to be designated as PSAs. In summer 2012 PSAs will be asked submit a work programme. Based on the work programme, they will each receive an operating grant, expected to be signed before the end of 2012.

4.4. Performance monitoring

The monitoring of the implementation will be carried out, including periodic assessment of progress and delivery of the project results.

4.5. Evaluation and audit

Certifications of expenditure will have to be submitted as part of the contracts implementing this Decision. Evaluations of the results achieved by some of the projects financed under this decision may be done by external experts hired by the European Commission as well as external audits at the initiative of the Commission, if necessary. These evaluations and audits will be funded from other sources because of the "N+1" rule applying to the contracting-out period of this Decision. In case of joint management, and where applicable, the provisions in the relevant framework agreement signed with the international organisation will apply.

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4.6. Communication and visibility Communication and information activities are an integral part of the action, aiming at enhanced visibility and better understanding of EU-funded activities in the eastern neighbourhood. The Communication and Visibility Manual for EU External Actions will be respected and followed to ensure the visibility coherence. In case of joint management, and where applicable, the provisions in the relevant framework agreement(s) with the international organisation(s) will apply.