Within the 2010 Budget Support Operation, on the basis of a total variable commitment of € 6 million for 2013, the European Union makes a € 4.8 million disbursement in reward to the Government of Armenia’s implementation of reforms enshrined in the European Neighbourhood Policy Action Plan in the areas of public financial management, improvement of public sector transparency, and regulatory approximation with EU and international trade-related standards.
On 14 December 2013, within the Multi Sector Budget Support Operation, the European Union provided an instalment € 4.8 million in support to the implementation of the European Neighbourhood Policy Action Plan in the areas of public financial management, improvement of public sector transparency, and regulatory approximation with EU and international trade-related standards. The tranche is part of a Budget Support Operation that was agreed between the European Union and the Government of Armenia in 2010. Budget Support funds are channelled directly into the Treasury of the Government of Armenia.
The overall programme amounts to € 21 million of which 20 million consists of budget support. The current disbursement of € 4.8 million follows a previous disbursement in December 2011 of € 8 million for a total amount of €12.8 million. € 1 million is set aside to provide Technical Assistance to the Government’s institutions and Non State Actors that are active in the areas as well to assess the progress of the operation. The progress of the operations is assessed jointly by the European Union and its services, the Republic of Armenia institutions, international development partners and local Non State Actors.
Specifically to the current disbursement, in the public finance management area, the programme has encouraged the creation of a register in the e-gov.am website to enhance the transparency of the external audit process; furthermore, in the Ministry of Finance it has set up a Central Harmonisation Unit in charge of guiding reforms in public procurement and public financial internal controls. The Programme has supported the set up of the public procurement Appeals Board that is responsible to deal with public procurement complaints. In the trade-related area, the programme supported the government’s adoption of the Strategy on the reforms of quality infrastructure, and to adopt and to publish a register for intellectual property-related legislation and sub-legislation acts, court rulings and international treaties.
The final disbursement was inferior to the total available under this tranche, i.e. € 6 million, owing to two unmet targets regarding the operational capacity of the newly set-up public procurement appeals board; and the disclosure regarding the follow-up of the implementation of the recommendations in the field of external audit.