Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
10 July 2008 [shall come
into force on 1 August 2008];
12 June 2009 [shall come into force on 1 July
2009];
6 May 2010 [shall come into force on 2 June 2010];
16 December 2010 [shall come into force on 1 January
2011].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
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The Saeima1 has adopted
and the President has proclaimed the following law:
Law on the Management of the
European Economic Area Financial Mechanism and the Norwegian
Financial Mechanism
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) European Economic Area Financial Mechanism - a
financial mechanism which has been established on the basis of
the Agreement on the participation of the Czech Republic, the
Republic of Estonia, the Republic of Cyprus, the Republic of
Latvia, the Republic of Lithuania, the Republic of Hungary, the
Republic of Malta, the Republic of Poland, the Republic of
Slovenia and the Slovak Republic in the European Economic Area
signed in Luxembourg on 14 October 2003, and the financing of
which is ensured by the countries of the European Economic Area
and the European Free Trade Association;
2) Norwegian Financial Mechanism - a financial
mechanism which has been established on the basis of the
Agreement on the participation of the Czech Republic, the
Republic of Estonia, the Republic of Cyprus, the Republic of
Latvia, the Republic of Lithuania, the Republic of Hungary, the
Republic of Malta, the Republic of Poland, the Republic of
Slovenia and the Slovak Republic in the European Economic Area
signed in Luxembourg on 14 October 2003, and the financing of
which is ensured by the Kingdom of Norway;
3) European Economic Area Financial Mechanism Committee
- a committee established by the countries of the European
Economic Area and the European Free Trade Association which
manages the European Economic Area Financial Mechanism and takes
the decision to grant co-financing of the European Economic Area
Financial Mechanism to programmes, grant schemes, specific forms
of grant assistance, and individual projects;
4) Financial Mechanism Office - a body established by
the countries of the European Free Trade Association which
ensures, from the part of the donor countries, the operation of
the European Economic Area Financial Mechanism and the Norwegian
Financial Mechanism (hereinafter - the financial mechanisms);
5) management documents of the financial
mechanisms:
a) Memorandum of Understanding on the Implementation of the
EEA Financial Mechanism 2004-2009 between the Republic of
Iceland, the Principality of Liechtenstein, the Kingdom of
Norway, and the Republic of Latvia, and approved by Cabinet
Regulation No. 948 of 16 November 2004, On the Memorandum of
Understanding on the Implementation of the EEA Financial
Mechanism 2004-2009 between the Republic of Iceland, the
Principality of Liechtenstein, the Kingdom of Norway, and the
Republic of Latvia;
b) Memorandum of Understanding on the Implementation of the
Norwegian Financial Mechanism 2004-2009 established in accordance
with the Agreement of 14 October 2003 between the Kingdom of
Norway and the European Community on a Norwegian Financial
Mechanism for the Period 2004-2009 between the Kingdom of Norway
and the Republic of Latvia, and approved by Cabinet Regulation
No. 924 of 9 November 2004, On the Memorandum of Understanding on
the Implementation of the Norwegian Financial Mechanism 2004-2009
established in accordance with the Agreement of 14 October 2003
between the Kingdom of Norway and the European Community on a
Norwegian Financial Mechanism for the Period 2004-2009 between
the Kingdom of Norway and the Republic of Latvia;
c) regulations and procedures developed by the Financial
Mechanism Office (hereinafter - the Office) and approved by the
European Economic Area Financial Mechanism Committee or the
Norwegian Ministry of Foreign Affairs;
d) guidelines for the implementation of the financial
mechanisms developed by the Office and approved by the European
Economic Area Financial Mechanism Committee and the Norwegian
Ministry of Foreign Affairs;
6) focal point - the Ministry of Finance which performs
the obligations laid down in this Law in order to ensure the
management of the financial mechanisms;
7) intermediate body - a sectoral ministry which is
responsible for the priorities laid down in Annexes B to the
documents referred to in Section 1, Clause 5, Sub-clauses "a" and
"b" of this Law;
8) operator - a derived public person, an institution
of direct or indirect administration approved by the European
Economic Area Financial Mechanism Committee or the Norwegian
Ministry of Foreign Affairs that is responsible for the
implementation of a programme, a grant scheme or a specific form
of grant assistance;
9) individual project - a project to be implemented at
a local government, regional, or national level for which the
co-financing of the financial mechanisms requested is not less
than an equivalent of EUR 250 000 in lats according to the
exchange rate set by Latvijas Banka;
10) programme - a set of sub-projects implemented at a
local government, regional, or national level on the basis of
which the co-financing of the financial mechanisms is granted to
sub-project applicants for the implementation of a
sub-project;
11) grant scheme - a set of several small-scale
sub-projects on the basis of which the co-financing of the
financial mechanisms is granted to sub-project applicants for the
implementation of a sub-project. The co-financing of the
financial mechanisms requested for one sub-project (except for
sub-projects of specific forms of grant assistance) shall not
exceed an equivalent of EUR 50 000 in lats according to the
exchange rate set by Latvijas Banka;
12) specific form of grant assistance - a type of
assistance of the financial mechanisms laid down in Annexes C to
the documents referred to in Section 1, Clause 5, Sub-clauses "a"
and "b" of this Law and implemented in the form of grant scheme
(hereinafter - the grant scheme), except for the Technical
Assistance Fund;
13) sub-project - a project implemented within the
framework of a programme or grant scheme;
14) application for an individual project - a written
document by an individual project applicant submitted thereby to
the intermediate body in order to qualify for the co-financing of
the financial mechanisms necessary for the implementation of an
individual project;
15) application for a sub-project - a written document
by a sub-project applicant submitted thereby to an operator in
order to qualify for the co-financing of the financial mechanisms
necessary for implementation of a sub-project;
16) individual project applicant - an institution of
direct or indirect administration, another public institution, a
derived public person, or a legal person registered in the
Republic of Latvia that submits an application for an individual
project to the intermediate body;
17) sub-project applicant - an institution of direct or
indirect administration, another public institution, a derived
public person, legal person registered in the Republic of Latvia,
and also - in case of the Scholarship Grant Scheme - a natural
person that submits a sub-project application to the operator,
unless the operator has limited the range of sub-project
applicants upon an agreement with the Office;
18) criteria for the evaluation of an application for an
individual project - decisive indicators according to which
an application for an individual project shall be assessed and
the decision to send it to the Office or to reject it shall be
taken;
19) criteria for the evaluation for an application for a
sub-project - decisive indicators according to which a
sub-project application shall be assessed and the decision to
approve or reject it shall be taken;
20) beneficiary of co-financing for the individual
project - an individual project applicant whose application
has been approved by the European Economic Area Financial
Mechanism Committee or the Norwegian Ministry of Foreign
Affairs;
21) beneficiary of co-financing for the sub-project - a
sub-project applicant whose application has been approved by an
operator;
22) grant agreement - an agreement on the terms and
conditions of use of the co-financing of the financial mechanisms
granted to a programme, the grant scheme, or an individual
project entered into between the focal point and the European
Economic Area Financial Mechanism Committee or the Norwegian
Ministry of Foreign Affairs;
23) cooperation agreement - an agreement on the
implementation of an individual project entered into between the
Central Finance and Contracting Agency (hereinafter - the
Agency), an intermediate body, and the beneficiary of
co-financing for the individual project, or an agreement on the
implementation of a programme or the grant scheme entered into
between the Agency, the intermediate body, and an operator, or an
agreement on the grant schemes laid down in Annexes C to the
documents referred to in Section 1, Clause 5, Sub-clauses "a" and
"b" of this Law entered into between the Agency and the
operator;
24) agreement on the implementation of a sub-project -
an agreement on the implementation of a sub-project entered into
between an operator and beneficiary of co-financing for the
sub-project;
25) interim project review - a report which includes a
summary section, a section of progress and indicators of the
project, and also a section of horizontal priorities and risk
analysis (a progress section) in the last interim project review
of the current year, and a request for funds and financing
certification of the beneficiary of co-financing for the
individual project or the operator (a financial section), and
which is prepared by the beneficiary of co-financing for the
individual project or the operator in accordance with the
guidelines referred to in Section 1, Clause 5, Sub-clause "d" of
this Law;
26) [10 July 2008];
27) project completion report - a report which includes
a summary of finances (a financial section) and results of
completion (a section of results) and which is prepared by the
beneficiary of co-financing for the individual project or the
operator in accordance with the guidelines referred to in Section
1, Clause 5, Sub-clause "d" of this Law;
28) annual monitoring report - a report prepared by an
intermediate body responsible for a relevant priority which
includes information on the course of implementation of the
programmes, grant schemes, and individual projects co-financed by
the financial mechanisms over the year;
29) annual financial statement - a report which
includes information on the progress towards implementation of
the financial mechanisms over the year and which is prepared by
the focal point in accordance with the guidelines referred to in
Section 1, Clause 5, Sub-clause "d" of this Law;
30) non-compliance - an infringement of the European
Union law or laws and regulations of the Republic of Latvia,
management documents of the financial mechanisms, a grant
agreement or a cooperation agreement which affects or may affect
implementation of an individual project, a programme, a grant
scheme or a sub-project in conformity with to the regulations
laid down.
[10 July 2008]
Section 2. Purpose of the Law
The purpose of the Law is to prescribe efficient and
transparent management of the financial mechanisms in Latvia in
line with the principles of financial management.
Section 3. Scope of Application of
this Law
This Law prescribes:
1) the authorities involved in the management of the financial
mechanisms, and the rights and obligations thereof;
2) the procedures by which the authorities involved in the
management of the financial mechanisms take decisions and the
procedures for appealing thereof;
3) other issues related to the management of the financial
mechanisms.
Section 4. Management of the
Financial Mechanisms
Management of the financial mechanisms shall constitute
organisation of the implementation of the financial mechanisms,
development of the criteria for the evaluation of applications
for individual projects and sub-projects, selection of
applications for programmes, grant schemes, and individual
projects for sending thereof to the Office, selection and
approval of of applications for sub-projects, implementation,
control, audit of programmes, grant schemes (including
sub-projects), and individual projects financed by the financial
mechanisms, making of payments, reporting on the non-conformities
established, monitoring, and evaluation.
Section 5. Granting of the
Co-financing of the Financial Mechanisms
(1) Submission of an application for a programme, a grant
scheme, or an individual project in accordance with this Law
shall not impose an obligation on the authority involved in the
management of the financial mechanisms to support sending of the
programme, grant scheme, or individual project to the Office.
(2) Submission of an application for a sub-project in
accordance with this Law shall not impose an obligation on the
operator to grant a co-financing of the financial mechanisms to
the applicant thereof.
Chapter II
Ensuring of the Management of the Financial Mechanisms
Section 6. Authorities and Persons
Involved in the Management of the Financial Mechanisms
(1) Management of the financial mechanisms shall be ensured
by:
1) the following authorities involved in the management of the
financial mechanisms:
a) the focal point;
b) the Agency;
c) the payment authority;
d) the intermediate body;
e) the competent sectoral ministry;
f) the operator;
g) the Monitoring and Management Committee;
h) [6 May 2010];
2) the beneficiary of co-financing for the individual project
or sub-project.
(2) In order to ensure effective performance of the
obligations laid down in this Law, the authorities involved in
the management of the financial mechanisms shall issue internal
laws and regulations and cooperate in accordance with the
procedures laid down in the State Administration Structure
Law.
(3) The authorities involved in the management of the
financial mechanisms shall ensure management of the financial
mechanisms in accordance with the management documents of the
financial mechanisms.
[10 July 2008; 6 May 2010]
Section 7. Obligations and Rights of
the Focal Point
(1) The focal point has the following obligations:
1) to ensure management of the financial mechanisms and
effective implementation thereof;
2) to ensure implementation and monitoring of the assistance
provided by the Technical Assistance Fund;
3) to ensure entering into grant agreements;
4) [6 May 2010];
5) [6 May 2010];
6) [10 July 2008];
7) to prepare the annual financial statement and submit it to
the Office;
8) to ensure publicity of the implementation of the financial
mechanisms in Latvia.
(2) The focal point has the following rights:
1) to propose and carry out control and audit of the financial
mechanisms;
2) to request information that is necessary for ensuring the
management of the financial mechanisms from the authorities
involved in the management of the financial mechanisms and
beneficiaries of co-financing for the individual project or
sub-project.
(3) The Ministry of Finance shall ensure that the functions
which it performs as the focal point in accordance with this Law
are separated from its other functions.
[10 July 2008; 6 May 2010]
Section 8. Agency, Tasks Thereof
(1) The Agency shall have the following tasks of the focal
point:
1) to develop draft cooperation agreements;
2) to enter into cooperation agreements;
3) to ensure monitoring, control, and audit of the
implementation of programmes, grant schemes, and individual
projects in accordance with cooperation agreements;
4) to examine the interim project reviews and documents
supporting the request for the funds of the financial mechanisms
submitted by the Operators or beneficiaries of co-financing for
the individual project, and also examine project completion
reports;
41) to send electronically the last interim project
review of the current year and the project completion report
submitted by the operator and the beneficiary of co-financing for
the individual project approved in the priorities which have been
laid down in Annexes B to the documents referred to in Section 1,
Clause 5, Sub-clauses "a" and "b" of this Law to the intermediate
body for coordination;
5) to approve the progress section of the interim project
review, and also the project completion report after carrying out
the examination referred to in Paragraph one, Clause 4 of this
Section, and submit such reports to the payment authority.
6) [6 May 2010].
(2) The Agency shall ensure that the tasks which it carries
out in accordance with this Law are separated from its other
tasks.
[10 July 2008; 6 May 2010]
Section 9. Payment Authority,
Obligations and Rights Thereof
(1) The functions of the payment authority shall be performed
by the Treasury.
(2) The payment authority has the following obligations:
1) to open and service accounts for the funds of the financial
mechanisms;
2) to ensure that unused funds or expenditures made
inappropriately are reimbursed;
3) to approve the financial section of the interim project
review after receipt thereof from the Agency and submit the
review to the Office;
4) after receipt of the project completion report from the
Agency, to approve the financing certification section of the
beneficiary of co-financing for the individual project or that of
the operator referred to in this report, and submit the report to
the Office;
5) to make payments after receipt of funds from the
Office.
(3) The payment authority has the right to request that the
focal point, the Agency, the intermediate body, the operator, the
beneficiary of co-financing for the individual project or
sub-project submits supporting documents necessary for approving
the request for funds.
(4) The Treasury shall ensure that the functions which it
performs in accordance with this Law are separated from its other
functions.
[10 July 2008]
Section 10. Intermediate Body,
Obligations and Rights Thereof
(1) The functions of the Intermediate Body shall be performed
by the following:
1) the Ministry of Environmental Protection and Regional
Development - in the priorities Environmental protection,
Sustainable development, Regional policy and
development of economic activities, and Cross-border
cooperation;
2) the Ministry of Culture - in the priority European
heritage conservation;
3) the Ministry of Health - in the priority Health;
4) the Ministry of Welfare - in the priority Children who
have special needs (disabled children);
5) the Ministry of Education and Science - in the priorities
Human resource development and education and Academic
research;
6) the Ministry of the Interior - in the priority
Schengen;
7) the Ministry of Justice - in the priorities Justice
and Technical assistance provided for implementation of
the legal acts of (acquis communautaire) of the Community;
8) [16 December 2010].
(2) The intermediate body has the following obligations:
1) to develop regulations for an open tender for individual
projects in cooperation with the competent sectoral ministries by
including the criteria for the evaluation of applications for
individual projects;
2) if the focal point agrees with the European Economic Area
Financial Mechanism Committee and the Norwegian Ministry of
Foreign Affairs on a limited tender for individual projects, to
develop regulations for a limited tender to which the provisions
of this Law apply regarding an open tender for the applications
for individual projects;
3) to evaluate applications for individual projects in
accordance with the criteria for the evaluation laid down in
regulations for open tenders for the applications for individual
projects and submit an opinion on evaluation of the
abovementioned applications to the Focal Point;
4) to inform an individual project applicant within seven days
of the decision of the focal point to reject or support the
application for the individual project by indicating whether
there is sufficient financing for the application for the
individual project and whether it has been sent to the Office,
and also of the final decision of the European Economic Area
Financial Mechanism Committee or the Norwegian Ministry of
Foreign Affairs to reject or approve the application for the
individual project;
41) to inform the individual project applicant
within seven days of sending of the application for the
individual project to the Office in the case referred to in
Section 20, Paragraph 2.3 of this Law;
42) if the final decision to approve all the
applications for the individual projects sent to the Office is
received from the Office before the time period referred to in
Section 20, Paragraph 2.1 of this Law, to inform the
individual project applicants thereof within seven days for the
applications of which there was not sufficient financing;
5) to ensure monitoring and control of the implementation of
programmes, grant schemes, and individual projects;
6) to enter into cooperation agreements;
7) to examine and coordinate the progress section of the last
interim project review of the current year and the section of
results of the project completion report submitted by the
operator and the beneficiary of co-financing for the individual
project approved in the priorities which have been laid down in
Annexes B to the documents referred to in Section 1, Clause 5,
Sub-clauses "a" and "b" of this Law;
8) to submit the annual monitoring report to the focal
point;
9) to inform the public of the projects which have been
implemented in a relevant priority by using the financial
mechanisms.
(3) The intermediate body has the following rights:
1) to prepare applications for programme or grant scheme in a
relevant priority;
2) to prepare applications for individual project in a
relevant priority, and also ensure involvement of independent
experts in the evaluation of applications for individual
projects;
3) to suggest and carry out control and audit of programmes,
grant schemes, and individual projects financed by the financial
mechanisms in a relevant priority;
4) to request that the operator and the beneficiary of
co-financing for the individual project provide information which
is necessary for ensuring control and audit of the financial
mechanisms.
(4) The intermediate body shall ensure that the functions
which it performs in accordance with this Law are separated from
its other functions.
[10 July 2008; 12 June 2009; 16 December 2010]
Section 11. Competent Sectoral
Ministry, Obligations and Rights Thereof
(1) Within the meaning of this Law, the competent sectoral
ministry shall be the ministry within the competence of which is
to deal with the sub-priorities within the framework of the
priorities laid down in Annexes B to the documents referred to in
Section 1, Clause 5, Sub-clauses "a" and "b" of this Law and
which does not perform functions of the intermediate body in the
relevant priority.
(2) The competent sectoral ministry has the following
obligations:
1) to participate in the development of regulations of a
tender for individual project applications;
2) to delegate its representatives for the participation in
the commission evaluating individual project applications or
sub-project applications.
(3) The obligations of the competent sectoral ministry shall
be fulfilled by the following institutions of direct
administration:
1) the Ministry of Foreign Affairs;
2) the Ministry of Economics;
3) the Ministry of Justice;
4) the Ministry of Agriculture;
5) the institutions of direct administration referred to in
Section 10, Paragraph one of this Law that do not perform
functions of the intermediate body in a relevant priority.
(4) The competent sectoral ministry has the following
rights:
1) to prepare programme or grant scheme applications in a
relevant priority;
2) to prepare individual project applications in a relevant
priority.
(5) The competent sectoral ministry shall ensure that the
functions which it fulfils in accordance with this Law are
separated from its other functions.
[12 June 2009]
Section 12. Operator, Obligations
Thereof
(1) An operator has the following obligations:
1) to establish and maintain the internal control system in
accordance with the laws and regulations governing establishment
of the internal control system;
2) to develop draft agreements on implementation of
sub-projects;
3) to enter into cooperation agreements;
4) to implement programmes or grant schemes in conformity with
the requirements of the documents referred to in Section 1,
Clause 5 of this Law, the grant agreement, and cooperation
agreement;
5) to develop regulations of an open tender for sub-projects
by including the sub-project application evaluation criteria
therein;
6) to ensure announcement of an open tender for
sub-projects;
7) to ensure selection and evaluation of sub-project
applications;
8) to enter into agreements on implementation of
sub-projects;
9) to collect, examine, prepare, and approve the requests for
covering expenditure of sub-projects which have been submitted by
beneficiaries of co-financing for sub-projects, supporting
documents, and information on the progress towards implementation
of sub-projects;
10) to prepare and submit to the Agency the interim reviews
and project completion reports of programmes and grant
schemes.
11) [10 July 2008];
12) [10 July 2008];
13) to ensure that the requirements for publicity of
programmes and grant schemes are met;
14) to recover and reimburse expenditures made
inappropriately.
(2) The operator shall undertake financial responsibility for
the implementation of programmes and grant schemes in accordance
with the documents referred to in Section 1, Clause 5,
Sub-paragraphs "c" and "d" of this Law, grant agreements, and
concluded cooperation agreements.
[10 July 2008]
Section 13. Monitoring and
Management Committee, Composition, Rights and Obligations
Thereof
(1) The Monitoring and Management Committee shall be a
collegial authority involved in the management of the financial
mechanisms. The Cabinet shall approve the by-laws thereof. The
Monitoring and Management Committee has the following
obligations:
1) to provide proposals for applications for programmes and
grant schemes prior to sending them to the Office;
2) to coordinate regulations of an open tender for the
applications for individual project;
3) to provide proposals for the applications for individual
project prior to sending them to the Office;
4) to approve a sample draft cooperation agreement (also
amendments to the agreement);
5) to monitor programmes, grant schemes, and individual
projects;
6) to assess recommendations and take decisions on
reallocation of funds for the priorities which are laid down in
Annexes B to the documents referred to in Section 1, Clause 5,
Sub-clauses "a" and "b" of this Law;
7) to approve the annual financial statements drawn up by the
focal point;
8) to assess efficiency and effectiveness of the use of funds
of the financial mechanisms.
(2) The Monitoring and Management Committee has the following
rights:
1) to propose measures for the achievement of objectives of
programmes, grant schemes, and individual projects;
2) to request that any authority and person involved in the
management of the financial mechanisms provide additional
information on the implementation of programmes, grant schemes,
and individual projects.
(3) The head of the focal point shall approve composition of
the Monitoring and Management Committee. A representative of the
focal point shall chair the Monitoring and Management Committee.
The focal point shall ensure performance of the functions of the
Secretariat of the Monitoring and Management Committee.
(4) The composition of the Monitoring and Management Committee
shall include representatives with voting rights from the
following:
1) the focal point;
2) the Agency;
3) the intermediate bodies;
4) the competent sectoral ministries;
5) the planning regions.
(5) Representatives of the payment authority, the Office, an
association or foundation, and also of social partners shall
participate in the work of the Monitoring and Management
Committee in an advisory capacity.
(6) A representative of the intermediate body or a
representative of the competent sectoral ministry which has
submitted an application for an individual project is not
entitled to participate with voting rights in the Monitoring and
Management Committee that examines the application for the
individual project of the relevant intermediate body or competent
sectoral ministry.
[6 May 2010]
Section 14. Composition of the
Monitoring Committee
[6 May 2010]
Section 15. Management Committee,
Rights and Obligations Thereof
[6 May 2010]
Section 16. Composition of the
Management Committee
[6 May 2010]
Section 17. Obligations of the
Beneficiary of Co-financing for the Individual Project and the
Beneficiary of Co-financing for the Sub-project
(1) The beneficiary of co-financing for the individual project
has the following obligations:
1) to ensure that the individual project is implemented in
conformity with the grant agreement and cooperation
agreement;
2) to ensure that each individual project has its separate
accounting;
3) to provide information on the implementation of an
individual project and ensure that representatives of the Board
of Auditors of the European Free Trade Association, the European
Economic Area Financial Mechanism Committee, the Norwegian
Ministry of Foreign Affairs, the State Audit Office of the
Republic of Latvia, and the authorities involved in the
management of the financial mechanisms have access to all
original documents related to the implementation of the
individual project, and also the place where the relevant
individual project is implemented;
4) to prepare and submit to the Agency the interim project
review and the project completion report;
5) [10 July 2008];
6) to implement instructions of the authorities involved in
the management of the financial mechanisms;
7) to ensure that the requirements for publicity of individual
projects are met.
(2) The beneficiary of co-financing for the sub-project has
the following obligations:
1) to ensure that the sub-project is implemented in conformity
with the agreement on the implementation of the sub-project;
2) to ensure that each sub-project has its separate accounting
(except for sub-projects of the Scholarship Grant Scheme);
3) to provide information on the implementation of a
sub-project and ensure that representatives of the Board of
Auditors of the European Free Trade Association, the European
Economic Area Financial Mechanism Committee, the Norwegian
Ministry of Foreign Affairs, the State Audit Office of the
Republic of Latvia, and the authorities involved in the
management of the financial mechanisms have access to all
original documents related to the implementation of the
sub-project, and also the place where the relevant sub-project is
implemented;
4) to ensure that the requirements for publicity of
sub-projects are complied with.
[10 July 2008]
Section 18. Competence of the
Cabinet
In order to ensure the management of the financial mechanisms,
the Cabinet shall:
1) lay down the procedures by which the authorities involved
in the management of the financial mechanisms ensure
implementation, monitoring, evaluation, and audit of the the
financial mechanisms;
2) lay down the procedures for the planning of funds in the
State budget for the implementation of the programmes, grant
schemes, and individual projects (including sub-projects)
co-financed by the financial mechanisms and for making
payments;
3) approve the regulations of open tenders for applications
for individual projects which also include the criteria for the
evaluation of applications for individual projects;
4) approve regulations of open tenders for applications for
sub-projects which also include the criteria for the evaluation
of applications for sub-projects;
5) lay down the procedures for reporting on the
non-conformities established in the management of the financial
mechanisms and for recovering expenditures made
inappropriately;
6) lay down the procedures for providing and verifying the
information on the application of the value added tax within the
framework of programmes, grant schemes, and individual projects
co-financed by the financial mechanisms.
Section 19. Entering into the Grant
Agreement
(1) The focal point shall enter into the grant agreement with
the European Economic Area Financial Mechanism Committee on the
financing of each programme, grant scheme, and individual project
approved by the European Economic Area Financial Mechanism
Committee.
(2) The focal point shall enter into the grant agreement with
the Norwegian Ministry of Foreign Affairs on the financing of
each programme, grant scheme, and individual project approved by
the Norwegian Ministry of Foreign Affairs.
Chapter III
Decisions and Appeal Thereof
Section 20. Decisions of the Focal
Point, the Intermediate Body, and the Operator
(1) The intermediate body shall take the decision on the
conformity of an individual project application with the
administrative evaluation criteria and taking it for further
evaluation or on the non-conformity thereof with the
administrative evaluation criteria, and rejection thereof.
(2) Having evaluated preliminary the suitability and
conformity of a programme, a grant scheme, or an individual
project with the documents referred to in Section 1, Clause 5,
Sub-clauses "c" and "d" of this Law, and also having examined the
opinions submitted by the intermediate bodies on the evaluation
of applications for individual projects in accordance with the
evaluation criteria laid down in the regulations of open tenders
for applications for individual projects and the proposals of the
Monitoring and Management Committee for applications for
programmes, grant schemes, and individual projects, the focal
point shall take the decision to support or reject the
application for the programme, grant scheme, or individual
project.
(21) When the decision to support an application
for an individual project, the focal point shall send the
applications for the individual project for the approval of which
there is sufficient financing to the Office in order for the
European Economic Area Financial Mechanism Committee or the
Norwegian Ministry of Foreign Affairs to take the final decision
to approve or reject it. The application for the individual
project for the approval of which there is not sufficient
financing shall be considered rejected if it has not been sent to
the Office within 18 months from supporting it. If the time
period for the granting of funds of the relevant financial
mechanism expires in the abovementioned time period, the
application for the individual project shall be considered
rejected on the day of expiry of the time period for the granting
of funds of the financial mechanisms.
(22) The focal point may, upon the request of the
Office, send to the Office a supported application for an
individual project for which there is not sufficient financing
but which has obtained the next highest evaluation within the
framework of a relevant priority. If the European Economic Area
Financial Mechanism Committee or the Norwegian Ministry of
Foreign Affairs has not taken the decision to approve the
application for the individual project by the end of the time
period referred to in Section 20, Paragraph 2.1 of
this Law, it shall be considered to be rejected.
(23) If the focal point receives from the Office,
within the time period referred to in Paragraph 2.1 of
this Law, the final decision to reject the application of the
individual project sent, it shall send to the Office the next
supported application for an individual project. Prior to sending
the application for the individual project to the Office, the
focal point has the right to request that the individual project
applicant provides additional information on the application for
the project.
(3) The operator shall take the decision to approve, reject or
approve conditionally an application for a sub-project. The
condition shall be included in the decision and the fulfilment of
the condition shall be controlled in accordance with the
regulations of an open tender.
(4) If the co-financing granted is paid to the beneficiary of
co-financing for the individual project but it has not been used
in conformity with the requirements of laws and regulations, the
terms and conditions of the grant agreement or cooperation
agreement, the focal point shall take a decision to recover the
co-financing granted to the beneficiary of co-financing for the
individual project.
(5) If the co-financing granted is paid to the beneficiary of
co-financing for the sub-project but it has not been used in
conformity with the requirements of laws and regulations or terms
and conditions of the agreement on the implementation of the
sub-project, the operator shall take the decision to recover the
co-financing granted to the beneficiary of co-financing for the
sub-project.
[10 July 2008; 6 May 2010]
Section 21. Types of Decisions of
the Focal Point, the Intermediate Body, and the Operator
(1) The focal point, the intermediate body, or the operator
shall issue an administrative act or take an administrative
decision in conformity with the legal status of the individual
project applicant or sub-project applicant.
(2) If the individual project applicant or sub-project
applicant is a legal person or a natural person (in the case of
the Scholarship Grant Scheme) registered in the Republic of
Latvia, a decision taken by the focal point, the intermediate
body, or the operator shall constitute an administrative act.
(3) If the individual project applicant or sub-project
applicant is an institution of direct or indirect administration,
another public institution, or a derived public person, a
decision taken by the Focal Point, the intermediate body, or the
operator shall constitute an administrative decision.
(4) The administrative decision referred to in Paragraph three
of this Section shall be issued in writing, and it shall contain
the following parts:
1) the name and address of the focal point, the intermediate
body, or the operator;
2) the addressee - the individual project applicant or
sub-project applicant;
3) the finding of facts;
4) the justification of the administrative decision;
5) a separate list of the legal norms applied (indicating also
the Section, Paragraph, Clause or Sub-clause of the law or
regulation);
6) the decision to grant or refuse to grant the relevant
right.
Section 22. Time Period for Taking a
Decision
(1) The intermediate body shall take the decision on the
conformity of an application for an individual project with the
administrative evaluation criteria and taking it for further
evaluation or on non-conformity thereof with the administrative
evaluation criteria and rejection thereof not later than within
four months from the day of submission of the application for the
individual project.
(2) The focal point shall take the decision to support or
reject an application for a programme, grant scheme, or
individual project not later than within two months from the day
when the application for the programme, grant scheme, or
individual project is submitted to the focal point.
(3) The operator shall take the decision to approve or reject
a sub-project application not later than within four months from
the end date for the submission of applications for sub-projects
laid down in the regulations of an open tender for the
applications for sub-projects.
[10 July 2008]
Section 23. Decision of the European
Economic Area Financial Mechanism Committee or the Norwegian
Ministry of Foreign Affairs
(1) If the focal point has taken a decision and sent to the
Office an application for programme, grant scheme or individual
project, the European Economic Area Financial Mechanism Committee
or the Norwegian Ministry of Foreign Affairs respectively shall
take the final decision to approve or reject the application for
the programme, grant scheme, or individual project.
(2) If the focal point has submitted to the Office a request
for the application of financial correction to the programme,
grant scheme, or individual project, the European Economic Area
Financial Mechanism Committee or the Norwegian Ministry of
Foreign Affairs respectively shall take the decision to apply the
financial correction to the programme, grant scheme, or
individual project.
[6 May 2010]
Section 24. Appeal of Decisions
(1) The decisions referred to in Section 20 of this Law may be
appealed to the court if the decision is addressed to the person
referred to in Section 21, Paragraph two of this Law. The appeal
of the decision shall not suspend the operation thereof.
(2) The decision referred to in Section 21, Paragraph three
and Section 23 of this Law may not be appealed to the court.
Chapter IV
Procedures for the Settlement of Disputes on the Granted
Co-financing
Section 25. Procedures for the
Settlement of Disputes
Disputes on the granted co-financing shall be settled in
accordance with the procedures laid down in the Administrative
Procedure Law, the Civil Procedure Law, and other laws and
regulations.
Section 26. Decision to Recover the
Granted Co-financing
A decision to recover the granted co-financing shall be taken
in the cases laid down in Section 20, Paragraph four or five of
this Law and in accordance with the procedures laid down in the
Administrative Procedure Law if the beneficiary of co-financing
may be the addressee of the administrative act in accordance with
Section 21, Paragraph two of this Law and compulsory enforcement
may be directed against him of her.
Section 27. Settlement of Disputes
in Accordance with the Civil Legal Procedures
(1) If the application of the procedures for recovering
co-financing laid down in Section 26 of this Law is not useful,
and also in the cases where the provisions of Section 20,
Paragraph four or five and Section 26 of this Law are not
applicable to the recovery of the granted co-financing, the
granted co-financing shall be recovered or a dispute on the
disbursement or continuation of the disbursement of financial
resources shall be resolved in accordance with the civil legal
procedures.
(2) If the beneficiary of co-financing for the individual
project or the beneficiary of co-financing for the sub-project is
an institution of direct or indirect administration, another
public institution, or a derived public person, the granted
co-financing shall be recovered or a dispute on the disbursement
or continuation of the disbursement of the granted financial
resources shall be settled in accordance with the procedures laid
down by the Cabinet.
Section 28. State Fee in Applying to
the Court
The focal point, the Agency, the payment authority, the
intermediate body, and the operator shall not pay the State fee
when applying to the court in respect of a contractual
dispute.
Chapter V
Final Provisions
Section 29. Adjusting an Application
for an Individual Project and Sub-project
(1) If an application for an individual project does not
comply with the administrative eligibility criteria laid down in
the regulations of an open tender for individual projects, the
intermediate body shall request once in writing that the
individual project applicant adjusts the application for the
project or submits additional information.
(2) A decision to request additional information may neither
be contested nor appealed. Hearing of an individual project
applicant within the meaning of the Administrative Procedure Law
shall be performed by carrying out the activities referred to in
Paragraph one of this Section.
(21) If the focal point establishes that an
application for an individual project does not correspond to the
documents referred to in Section 1, Clause 5, Sub-clauses "c" and
"d" of this Law, the intermediate body shall, upon the request of
the focal point, request once in writing that the individual
project applicant adjusts the application for the project or
submits additional information.
(3) If an application for a sub-project does not comply with
the administrative eligibility criteria laid down in the
regulations of an open tender for sub-projects, the operator
shall request once in writing that the sub-project applicant
adjusts the application for the sub-project or submits additional
information.
(4) A decision to request additional information may neither
be contested nor appealed. Hearing of a sub-project applicant
within the meaning of the Administrative Procedure Law shall be
implemented by carrying out the activities referred to in
Paragraph three of this Section.
[10 July 2008]
Section 30. Prevention of a Conflict
of Interest
Restrictions on commercial activities, earning of income, and
combination of offices, and also other restrictions on and duties
of the persons who perform office duties in the authorities
involved in the management of the financial mechanisms shall be
laid down in the law On Prevention of Conflict of Interest in
Activities of Public Officials.
Section 31. Right of Access to a
File
(1) An individual project applicant or a sub-project applicant
has the right of access to a file of the application for the
individual project or sub-project submitted by him or her at any
stage of the process.
(2) An individual project applicant or a sub-project applicant
has the right of access to the application evaluation materials
only after entry into effect of the decision referred to in
Section 20, Paragraph one on the conformity of the application
for the individual project with the administrative evaluation
criteria or rejection thereof, the decision referred to in
Section 20, Paragraph two to support or reject the application
for the individual project , or the decision referred to in
Section 20, Paragraph three to approve or reject the application
for the sub-project.
(3) When consulting a file of the application for the
individual project or sub-project, the information on the persons
who have evaluated the application for the individual project or
sub-project shall not be disclosed to the applicant.
[10 July 2008]
Section 32. Freedom of
Information
(1) A file of the programme, grant scheme, and individual
project shall be restricted access information and available in
accordance with the Freedom of Information Law.
(2) The following information shall be considered generally
accessible:
1) the beneficiary of co-financing for the individual project
or sub-project (for a legal person, the name and legal address;
for a natural person - the given name and surname);
2) the name of the programme, grant scheme, individual
project, or sub-project;
3) the amount of the granted co-financing of the financial
mechanisms;
4) the place where the programme, grant scheme, individual
project, or sub-project is implemented;
5) a summary of the measures to be taken within the framework
of the programme, grant scheme, individual project, or
sub-project.
(3) The information referred to in Paragraph two of this
Section shall only be available after entry into force of the
final decision to approve the application for the programme,
grant scheme, individual project or sub-project.
(4) Information on the persons who evaluate or have evaluated
the application for the individual project or sub-project shall
not be disclosed.
[10 July 2008]
Transitional Provisions
1. The Cabinet shall issue the regulations referred to in
Section 18, Clauses 1, 2, 3, 5, and 6 of this Law by 1 March
2008. Until the day of coming into force of these regulations but
not later than until 1 March 2008, the following Cabinet
regulations shall apply, insofar as they are not in contradiction
with this Law:
1) Cabinet Regulation No. 852 of 8 November 2005, Regulations
Regarding the System for the Management, Implementation,
Monitoring, Control, and Evaluation of the European Economic Area
Financial Mechanism and the Norwegian Financial Mechanism;
2) Cabinet Regulation No. 396 of 19 June 2007, Procedures for
Planning the Funds in the State Budget for the Implementation of
the Projects Financed by the European Economic Area Financial
Mechanism and the Norwegian Financial Mechanism and for Making
Payments.
2. The Cabinet shall approve the regulations of an open tender
for sub-projects referred to in Section 18, Clause 4 of this Law
and submitted by the operator within the time periods for the
announcement of open tenders for sub-projects laid down in the
grant agreement.
3. Until the day of coming into force of the by-laws of the
Management Committee approved by the Cabinet but not longer than
until 1 March 2008, the provisions for the approval of the
by-laws included in the Cabinet Regulation No. 852 of 8 November
2005, Regulations Regarding the System for the Management,
Implementation, Monitoring, Control, and Evaluation of the
European Economic Area Financial Mechanism and the Norwegian
Financial Mechanism, shall be applicable to the procedures for
approving the by-laws of the Management Committee.
4. Until the day of coming into force of the by-laws of the
Monitoring Committee approved by the Cabinet but not longer than
until 1 March 2008, the provisions for the approval of the
by-laws included in the Cabinet Regulation No. 852 of 8 November
2005, Regulations Regarding the System for the Management,
Implementation, Monitoring, Control, and Evaluation of the
European Economic Area Financial Mechanism and the Norwegian
Financial Mechanism, shall be applicable to the procedures for
approving the by-laws of the Monitoring Committee.
The Law shall come into force on 1 November 2007.
The Law has been adopted by the Saeima on 18 October
2007.
President V. Zatlers
Rīga, 31 October 2007
1 The Parliament of the Republic of
Latvia
Translation © 2021 Valsts valodas centrs (State
Language Centre)