1.            DESCRIPTION

1.1.        Objectives

The general objective of the action is to support the protection of human rights in Armenia.

Specific objectives:

(1) Improving the protection of human rights through enacting and implementing relevant legislation in the areas of right to free elections, torture prevention, anti-discrimination (including minorities, people with disabilities, refugees and other vulnerable groups), gender equality and child protection.

(2) Enhancing coordination and cooperation in the area of human rights and increasing capacity of relevant stakeholders

Cross-cutting issues: In the implementation of the action, specific attention will be paid to cross-cutting issues - democracy and human rights, gender equality, the rights of the child, which are focal areas of the action. All efforts will be made to ensure the environmental sustainability of the action.

1.2.      Expected results

1.         Improved protection of human rights through enacting and implementing relevant legislation in the areas of right to free and fair elections, torture prevention, anti-discrimination (including minorities, people with disabilities, refugees and other vulnerable groups),  and gender equality and child protection:

1. Enhanced electoral system in line with Council of Europe (CoE) and the Organisation for Security and Cooperation in Europe (OSCE) Office for Democratic Institutions and Human Rights (ODIHR) recommendations;
2. Progress in torture prevention through legal, investigative and enforcement reforms;
3. Greater protection of persons belonging to minorities, people with disabilities, refugees and other vulnerable groups against discrimination;
4. Effective gender equality mechanisms and protection of victims of domestic/gender-based violence and abuse;
5. Improved child protection system, including deinstitutionalisation of children;

2.         Enhanced coordination and cooperation in the area of human rights and increased capacity of relevant stakeholders:

1. Effective coordination role and capacity of the Ministry of Justice for the implementation and annual revision of the Human Rights Action Plan and international human rights commitments;
2. Effective monitoring mechanisms and monitoring capacity of the Interagency Commission for the implementation of the provisions of the Human Rights Action Plan.
3. Strengthened capacity of the Human Rights Defender office in monitoring human rights education and providing recommendations, addressing concerns of minorities, people with disabilities, refugees and other vulnerable groups and cooperation with State institutions;
4. Strengthened capacity of the Ministry of Labour and Social Affairs for the protection and promotion of the rights of the child, gender equality, rights of people with disabilities;
5. Strengthened capacity of the Women's Council under the Prime Minister as the National Gender Machinery;
6. Strengthened capacity of law enforcement structures in the area of human rights through improved investigation and enforcement techniques and relevant education/training;

vii.  Strengthened capacity of the National Assembly Standing Committee on Protection of Human Rights and Public Affairs

viii.Strengthened capacity of the Ministry of Foreign Affairs;

1.3.      Main activities

The main activities to implement the budget support package are policy dialogue, financial transfer, performance assessment, reporting and capacity development.

1.3.1.   Budget Support

Engagement in dialogue around conditions and government reform priorities, the verification of conditions and the payment of budget support.

1.3.2.   Complementary support

Complementary support will address the needs for enhanced coordination and cooperation in the area of human rights on a horizontal level through support to the Ministry of Justice for the implementation and annual revision of targets and performance indicators of the Human Rights Action Plan, as well as donor coordination. It will also provide assistance to the effective monitoring mechanisms and capacity of the Interagency Commission for the implementation of the provisions of the Human Rights Action Plan. In this context, support to the reporting mechanisms and workflow of all responsible bodies will be provided.

Capacity development is also envisaged for other stakeholders, including the  Human Rights Defender office (promoting human rights education, concerns of minorities, people with disabilities, refugees and other vulnerable groups), the Ministry of Labour and Social Affairs (implementing the Action Plan in the areas of protection and promotion of the rights of the child, gender equality, rights of people with disabilities), the Women's Council under the Prime Minister (National Gender Machinery), law enforcement structures (improved awareness, investigation and enforcement techniques), and the National Assembly Standing Committee on Protection of Human Rights and Public Affairs (overall capacity building and oversight support). The complementary support will also address awareness-raising on reforms in relevant areas.

2.         Implementation

2.1.      Indicative operational implementation period

The indicative operational implementation period of this action is as specified in Article 2 of the Special Conditions.

2.2.      Amounts allocated for budget support

The total amount allocated to human rights under the bilateral allocation for the programming period 2014-2017 of the SSF should range between EUR 21.3 and 23.3 million (estimated 13.7 – 15.2% of the total envelope) of which the amount allocated under the present budget support programme is EUR 12 million funded from the complementary support envelope for capacity building under the SSF. Further support to human rights protection in Armenia will be provided under the Justice sector reform priority of the SSF complementing this action.

2.3.        Criteria and indicative schedule of disbursement of budget support  

2.3.1.   Budget Support details

Budget support is provided in one fixed and three variable tranches. Budget support is provided as direct untargeted budget support to the national Treasury. The crediting of the euro transfers disbursed into Armenian dram will be undertaken at the appropriate exchange rates in line with Article 6 of the Special Conditions. 

 2.3.2. Disbursement criteria

The general conditions for disbursement of all tranches are as follows: Satisfactory progress in the implementation of the National Strategy of Human Rights Protection and related Action Plan and continued credibility and relevance thereof; implementation of a credible stability-oriented macroeconomic policy; satisfactory progress in the implementation of the PFM reform programme; satisfactory progress with regard to the public availability of timely, comprehensive and sound budgetary information. In case of a significant deterioration of fundamental values, budget support disbursements may  be formally suspended in line with Article 27.1 of the general conditions of the financing agreement, or temporarily suspended or reduced.

The specific conditions will be related to an enhanced electoral system in line with CoE and OSCE/ODIHR recommendations, progress in torture prevention, greater protection of persons belonging to minorities, people with disabilities, refugees and other vulnerable groups against discrimination, effective gender equality mechanisms and protection of victims of domestic/gender-based violence and abuse, and an improved child protection system including deinstitutionalisation of children.

The indicative schedule of disbursements is summarised in the table below (all figures in EUR millions) based on fiscal year of the partner country:

The disbursement arrangements and timetable is described in Annex 2 of these TAPs.

The performance indicators used for disbursements are described in Annex 1 of these TAPs. Some of these indicators go beyond the actions identified in current Human Rights Action Plan for Armenia, but are in line with Armenia's European Neighbourhood Policy (ENP) Action Plan and the Generalised Scheme of Preferences (GSP+) human rights commitments. The chosen performance targets and indicators specified in Annex 1 will apply for the duration of the programme. However, in duly justified circumstances, the Government of Armenia may submit a request to the Commission for the targets and indicators to be changed. The changes agreed by the Commission to the targets and indicators may be authorised by exchange of letters between the two parties.

2.4.        Details on complementary support

2.4.2 Grant: direct award (direct management implemented by the Commission as the Contracting Authority)

a)   Objectives of the grant, fields of intervention, priorities of the year and expected results

A part of this action with the objective of strengthening coordination and capacity building in relevant areas may be implemented through a direct award to the United Nations Development Programme (UNDP). The entity would support complementary activities - coordination and capacity building tasks in the relevant human rights areas enumerated in section 1.3.

b)   Justification of a direct grant

Under the responsibility of the Commission's authorising officer responsible, the grant may be awarded without a call for proposals to the UNDP.

Under the responsibility of the Commission's authorising officer responsible, the recourse to an award of a grant without a call for proposals is justified because the action has human rights characteristics requiring specific knowledge and technical competences exhibited by the mentioned organisation, as well as sufficient administrative capacity.

c)   Eligibility conditions:  Not applicable.

d)  Essential selection and award criteria

The essential selection criteria are financial and operational capacity of the applicant.

The essential award criteria are relevance of the proposed action to the objectives of the programme: design, effectiveness, feasibility, sustainability and cost-effectiveness of the action.

e)   Maximum rate of co-financing

The maximum possible rate of co-financing for this grant is 80% of the eligible costs of the action.

The maximum possible rate of co-financing may be up to 100% in accordance with Article 192 of Regulation (EU, Euratom) No 966/2012 if full financing is essential for the action to be carried out. The essentiality of funding will be justified by the Commission's authorising officer responsible in the award decision, in respect of the principles of equal treatment and sound financial management.

f)    Indicative trimester to contact the potential direct grant beneficiary

First trimester of 2016.

2.4.3.     Procurement (direct management implemented by the Commission as the Contracting Authority)

2.4.4.     Scope of geographical eligibility for procurement and grants 

The geographical eligibility in terms of place of establishment for participating in procurement and grant award procedures and in terms of origin of supplies purchased as established in the basic act shall apply.

The Commission's authorising officer responsible may extend the geographical eligibility in accordance with Article 9(2)b of Regulation (EU) No 236/2014 on the basis of urgency or of unavailability of products and services in the markets of the countries concerned, or other duly substantiated cases where the eligibility rules would make the realisation of this action impossible or exceedingly difficult.

2.5.        Indicative budget

2.6.          Performance monitoring and donor coordination

For fiscal years 2017, 2018 and 2019 there will be an external review mission for the verification of the compliance with conditions attached to the release of each annual variable tranche. The review missions will take place indicatively in the second quarter of 2017, 2018 and 2019 and will be funded through this programme budget.

In addition, the monitoring of the programme will be carried out by a Steering Committee co-chaired by the Minister of Justice, the Minister of Foreign Affairs, the Human Rights Defender and the Head of the EU Delegation, which will include representatives of civil society and the donor community to ensure structured dialogue with the Government and close coordination among all stakeholders during implementation. Moreover, the programme will be discussed at the annual EU Budget Support Governance Board. This process should result in strengthening the coordination between Government, the donor community and non-state actors in this area. The policy dialogue will be documented through steering committee meeting minutes and decisions, as well as relevant reports.  The action will also be monitored through the Result Oriented Monitoring system. 

The EU Delegation has consistently promoted coordination among key line ministries, and encouraged structured dialogue with civil society. The Delegation holds regular meetings on cooperation and assistance with EU Member States. Cooperation with other donors is maintained through regular donor meetings on democratic governance. These donor meetings aim to involve the Government and nurture their eventual leadership for donor coordination.

2.7.         Evaluation and audit

Evaluations of budget support are envisaged in order to assess the relevance, efficiency, effectiveness, impact, sustainability and coherence of the achievements of the programme. Independent evaluators may be contracted by the Commission. Audits may be also be envisaged if necessary.

2.8. Communication and visibility

Communication and visibility of the EU is a legal obligation for all external actions funded by the EU. This action shall contain communication and visibility measures, which shall be based on a specific Communication and Visibility Plan of the Action, to be elaborated before the start of implementation by the Ministry of Justice and supported with the budget indicated in section 2.5 above. The measures shall be implemented by the Commission and/or by the partner country, contractors, and grant beneficiaries. Appropriate contractual obligations shall be included in, respectively, financing agreements, procurement and grant contracts.

The Communication and Visibility Manual for European Union External Action shall be used to establish the Communication and Visibility Plan of the Action and the appropriate contractual obligations.

Annexes

1 -      Performance indicators used for disbursements

2 -      Disbursement arrangements and timetable 

Annex 1: Performance indicators used for disbursements

The conditions and measures set out in the Annex 2 are based on achievable and objectively verifiable indicators. They reflect commitments the Government itself has undertaken as part of its National Strategy of Human Rights Protection and Action Plan and represent progressive steps towards the realisation of the objectives. These conditions also reflect the EU political and development cooperation priorities in the reform of the human rights sector in Armenia. Compliance with the general conditions is a pre-requisite for the assessment of compliance with the specific conditions, which shall result in the disbursement of the variable tranche of each instalment.

The specific conditions (as detailed in Annex 2) are related to improved protection of human rights through enacting and implementing relevant legislation in the areas of right to free and fair elections, torture prevention, anti-discrimination (including minorities, people with disabilities, refugees and other vulnerable groups) and gender equality and child protection. The related benchmarks/indicators per area are elaborated in Annex 2:

i.          Enhanced electoral system in line with CoE and OSCE/ODIHR recommendations;

ii.         Progress in torture prevention through legal, investigative and enforcement reforms;

iii.        Greater protection of persons belonging to minorities, people with disabilities, refugees and other vulnerable groups against discrimination;

iv.        Effective gender equality mechanisms and protection of victims of domestic/gender-based violence and abuse;

v.         Improved child protection system including deinstitutionalisation of children. 

Annex 2: Disbursement arrangements and timetable (budget support)

1.      Responsibilities

On the basis of the conditions for disbursement set out in this Financing Agreement, the competent authorities of the Republic of Armenia shall make a formal request to the European Commission for each tranche disbursement, indicatively in the first quarter of each year and based on what was achieved in the previous year. The formal request should include (i) a full analysis and justification for the release of funds, including all necessary supporting documentation, and (ii) a duly signed financial information form to facilitate corresponding payment.

2.      Indicative disbursement timetable 

The indicative disbursement timetable is set out below.

Indicative disbursement timetable (EUR mln)

3.         General conditions for the disbursement of tranches

The General Conditions set out below represent conditions to be met before the disbursement of each and every tranche.  All requests for any type of tranche release shall be accompanied by supporting information and documents, as appropriate, on the progress achieved in each of the four general conditions.

Table: General Conditions for tranche release

4.         Specific Conditions

Unlike General Conditions which have to be all met as condition for the payment of any type of tranche, the Specific Condition linked to a specific tranche applies to the assessment and disbursement of that individual tranche only, as specified below.

5. Modalities of assessment of performance in the case of variable tranches

The programme foresees the payment of four annual instalments. For the first instalment, a fixed tranche can be paid upon compliance with the General Conditions (as detailed in section above).  Once compliance with the General Conditions has been positively assessed by the Commission, the variable tranches (instalment 2, 3 and 4) will be assessed and paid according to the level of compliance with each of the Specific Conditions. 

There are three possible levels of compliance:

i)                      Full compliance, which will result in a disbursement decision of the Commission amounting to the full corresponding quota;

ii)                    Partial but significant compliance, which will result in a disbursement decision of the Commission amounting to half of the corresponding quota;

iii)                  Insufficient or no compliance, which will result in a no disbursement decision of the Commission.

In the event that more indicators are grouped under the same specific condition:

-           Full compliance corresponds to all indicators under such specific condition being fully met;

-           Partial but significant compliance corresponds to more than half of all the indicators under such specific condition being fully met;

-           Insufficient or no compliance corresponds to half or less than half of all the indicators under such specific condition being fully met. 

In duly justified cases and following a duly-substantiated request submitted by the competent authorities to the Commission, compliance might be re-assessed during the review of the immediately subsequent annual instalment, eventually allowing for the payment of the corresponding unpaid amount(s). Funds withheld for lack of compliance will be lost at the end of the Programme.

In any case, the final decision on the degree of compliance and on any type of tranche disbursement rests with the Commission.

[1] This should not be read as implying at least 2000 victims need to have benefitted from all of the enumerated services.

[2] This should not be read as implying at least 2000 victims need to have benefitted from all of the enumerated services.