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 for the Period 2014-2021
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) agency - an institution of direct administration
which implements a part of the functions of the Programme
Operator in accordance with the procedures laid down in the laws
and regulations regarding management and control of Financial
Mechanisms;
2) donor states - Iceland, Principality of
Liechtenstein, and Kingdom of Norway;
3) European Economic Area Financial Mechanism Committee
- a committee established by the states of European Economic Area
and the European Free Trade Association which manages the
European Economic Area Financial Mechanism and takes a decision
to grant co-financing of the European Economic Area Financial
Mechanism to programmes;
4) 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
(hereinafter - the Participation Agreement) signed in Luxembourg
on 14 October 2003, and the financing of which is ensured by the
states of the European Economic Area and the European Free Trade
Association;
5) Financial Mechanism Office - a body established by
the states of the European Free Trade Association which ensures,
from the part of the donor states, the operation of the European
Economic Area Financial Mechanism and the Norwegian Financial
Mechanism (hereinafter also - the Financial Mechanisms);
6) pre-defined project - a project defined in Annex B
to the Memorandum of Understanding or in the programme;
7) beneficiary of co-financing - a project applicant
whose project application has been approved by the Programme
Operator or the agency, as well as the implementer of a
pre-defined project whose project has received a positive
assessment of the Programme Operator or agency;
8) Norwegian Financial Mechanism - a financial
mechanism which has been established on the basis of the
Participation Agreement and the financing of which is ensured by
the Kingdom of Norway;
9) programme - an aggregate of measures which is
planned to be implemented with the aid of the Financial
Mechanisms oriented towards achievement of specific results and
objectives, and which has been laid down in Annex B to the
Memorandum of Understanding;
10) Programme Operator - a sectoral ministry or an
institution of direct administration subordinate thereto which
has been laid down as responsible for the implementation of the
programme in Annex B to the memorandum of understanding;
11) programme concept note - a document which includes
a short description of the field and results of the activities
planned in the programme;
12) programme agreement - an agreement on the
implementation of the programme which is entered into by and
between the Focal Point and the Financial Mechanism Committee of
the European Economic Area or the Norwegian Ministry of Foreign
Affairs after approval of the programme;
13) project application - an application (a filled-in
form, its annexes, and other documents) which are submitted by
the project applicant in order to apply for the co-financing of
the European Economic Area Financial Mechanism or the Norwegian
Financial Mechanism and the State budget necessary for the
project (hereinafter - the co-financing of the programme);
14) file of a project - a project application or
documentation of the pre-defined project, documents for the
assessment of the project application or pre-defined project, the
project agreement, and other documents related to the project or
pre-defined project which are at the disposal of the Programme
Operator or agency;
15) project agreement - an agreement on the
implementation of the project or pre-defined project which is
entered into by and between the Programme Operator or agency with
the beneficiary of co-financing, and such agreement is:
a) a civil contract if the beneficiary of co-financing is a
natural person, a legal person registered in the Republic of
Latvia, or an association of such persons;
b) an agreement if the beneficiary of co-financing is an
institution of direct or indirect administration, another State
institution, or derived public person;
16) project - a project application which conforms to
the project application assessment criteria and which has been
approved by the Programme Operator or agency;
17) project application assessment criteria -
provisions according to which a project application is assessed
and a decision is taken to approve it, to approve with a
condition, or to reject it;
18) memorandum of understanding:
a) Memorandum of Understanding on the implementation of the
EEA Financial Mechanism 2014-2021 between the Republic of Latvia
and Iceland, the Principality of Liechtenstein, the Kingdom of
Norway, and approved by Cabinet Regulation No. 712 of 5 December
2017, On the Memorandum of Understanding between the Republic of
Latvia and Iceland, the Principality of Liechtenstein, the
Kingdom of Norway on the Implementation of the EEA Mechanism
2014-2021;
b) Memorandum of Understanding on the implementation of the
Norwegian Financial Mechanism 2014-2021 between the Republic of
Latvia and the Kingdom of Norway, and approved by Cabinet
Regulation No. 713 of 5 December 2017, On the Memorandum of
Understanding between the Republic of Latvia and the Kingdom of
Norway on the Implementation of the Norwegian Financial Mechanism
2014-2021.
Section 2. Purpose of this Law
The purpose of the Law is to determine the management of the
Financial Mechanisms in order to promote efficient, transparent
implementation of the Financial Mechanisms corresponding to the
principles of sound financial management in Latvia.
Section 3. Scope of Application of
this Law
The Law prescribes the rights and obligations of the
institutions involved in the management of Financial Mechanisms,
the beneficiary of co-financing of the project or pre-defined
project, and the project partner, the procedures for making,
contesting and appealing the decisions of the institutions
involved in the management of Financial Mechanisms, as well as
the conditions for granting the programme co-financing.
Section 4. Management of Financial
Mechanisms
(1) Management of Financial Mechanisms shall be the
following:
1) preparation of amendments to the memorandums of
understanding on the implementation of Financial Mechanisms;
2) preparation, coordination, approval of programme concept
notes and pre-defined projects, and implementation of
programmes;
3) establishment of the management and control system of
Financial Mechanisms;
4) development of the project application assessment criteria,
project application selection;
5) control and audit of the management and control system,
programmes, projects, and pre-defined projects;
6) making payments and certification of expenditures within
the scope of implementation of Financial Mechanisms;
7) reporting of the irregularities detected;
8) monitoring and evaluation.
(2) The institutions involved in the management of Financial
Mechanisms shall comply with the principle of efficiency,
usefulness, economy, and proportionality in the management of
Financial Mechanisms.
Section 5. Granting the Programme
Co-financing
Submitting the project application for the European Economic
Area Financial Mechanism or the Norwegian Financial Mechanism, in
accordance with this Law, shall not cause the obligation for the
institution involved in the management of Financial Mechanisms to
grant a programme co-financing to the project applicant for
implementation of the project.
Chapter II
Ensuring the Management of Financial Mechanisms and Project
Implementation
Section 6. Institutions Involved in
the Management of Financial Mechanisms
(1) The management of Financial Mechanisms shall be ensured by
the following institutions involved in the management of
Financial Mechanisms:
1) Focal Point;
2) Programme Operator;
3) agency;
4) Audit Authority;
5) Certifying Authority;
6) Irregularity Authority.
(2) The institutions involved in the management of Financial
Mechanisms shall conform to that laid down in memorandums of
understanding in the management of Financial Mechanisms.
Section 7. Focal Point, Obligations
and Rights Thereof
(1) The functions of the Focal Point shall be fulfilled by the
Ministry of Finance.
(2) The Focal Point has the following obligations:
1) to ensure efficient implementation and monitoring of
Financial Mechanisms;
2) to ensure preparation of amendments to the memorandums of
understanding on the implementation of Financial Mechanisms;
3) to ensure the development of draft laws and regulations in
relation to the management and implementation of Financial
Mechanisms;
4) to ensure establishment of the management and control
system of Financial Mechanisms;
5) to ensure the publicity of implementation of Financial
Mechanisms;
6) to ensure measures for the evaluation of the implementation
of programmes;
7) to carry out the obligations of the Irregularity Authority
arising from the memorandums of understanding;
8) to fulfil other obligations which are laid down in this Law
or arise from the memorandums of understanding.
(3) The Focal Point has the following rights:
1) to propose and carry out control and audit of the
implementation of Financial Mechanisms;
2) to request and receive information from the institutions
involved in the management of Financial Mechanisms, the
beneficiary of co-financing, and the project partner which is
necessary for ensuring the management of Financial
Mechanisms.
(4) The Ministry of Finance shall ensure that the functions
which it fulfils as the Focal Point in accordance with this Law
are separated from the other functions thereof.
Section 8. Obligations and Rights of
the Programme Operator
(1) The functions of the Programme Operator shall be fulfilled
by the Ministry of the Interior, the Ministry of Education and
Science, the Ministry of Justice, the Ministry of Environmental
Protection and Regional Development, and the Investment and
Development Agency of Latvia.
(2) The Programme Operator has the following obligations:
1) to ensure implementation of the programme in conformity
with the programme agreement;
2) to develop draft laws and regulations for ensuring the
implementation of the programme;
3) to develop an aid programme or individual aid project and
to submit it for initial evaluation to the Ministry of Finance in
accordance with the procedures laid down in the Law on Control of
Aid for Commercial Activity;
4) to carry out ex-ante control of procurement
documentation and process of the procurement procedure of the
projects and pre-defined projects on a sample basis;
5) to fulfil other obligations which are laid down in this Law
or arise from the memorandums of understanding.
(3) The Programme Operator has the right to request and
receive information from the institutions involved in the
management of Financial Mechanisms, the beneficiary of
co-financing, and the project partner which is necessary for
ensuring the implementation, monitoring and control of the
programme, projects, or pre-defined projects.
(4) The manager of the Programme Operator cannot be the head
of the relevant institution of direct administration.
Section 9. Specification of the
Agency, Procedures for the Cooperation of the Programme Operator
and Agency
(1) The division of agencies and competence between the
Programme Operator and agency shall be determined by the
Cabinet.
(2) The Programme Operator, when fulfilling the obligations
laid down in Section 8, Paragraph two of this Law, may delegate a
part of them to the agency, except for the following
obligations:
1) the development of the programme concept note;
2) the development of draft laws and regulations for ensuring
the implementation of the programme;
3) the establishment of the cooperation committee and work
management in programmes which are implemented in partnership
with the institutions of donor states;
4) the development of the project application assessment
criteria;
5) the development of the management and control system of the
programme.
(3) The agency, when fulfilling the obligations laid down in
Paragraph two of this Section, shall be functionally subordinated
to the member of the Cabinet to which the Programme Operator
responsible for fulfilment of the obligations referred to in
Section 8, Paragraph two of this Law is subordinated. The member
of the Cabinet shall implement the functional subordination of
the agency with intermediation of the authorised official (head
of the Programme Operator).
(4) The institution shall ensure that the functions which it
fulfils as the Programme Operator or agency in accordance with
this Law are separated from the other functions of the
institution, including from functions which it fulfils as the
beneficiary of co-financing.
Section 10. Obligations and Rights
of the Audit Authority
(1) The functions of the Audit Authority shall be fulfilled by
the Ministry of Finance.
(2) The Audit Authority has the following obligations:
1) to fulfil the obligations laid down in this Law and arising
from the memorandums of understanding;
2) to prepare and submit an audit plan to the Focal Point;
3) to develop draft laws and regulations which are related to
ensuring the functions of the Audit Authority.
(3) The Audit Authority has the right to request and receive
information from the authorities involved in the management of
Financial Mechanisms, the beneficiary of co-financing, and the
project partner which is necessary for ensuring the audit of
Financial Mechanisms, as well as to ascertain the efficiency of
the operation of the system for the implementation and monitoring
of Financial Mechanisms.
(4) The Ministry of Finance shall ensure that the functions
which it fulfils as the Audit Authority in accordance with this
Law are separated from the other functions thereof.
(5) If the Audit Authority has information on any changes and
circumstances at its disposal which may significantly affect the
implementation of Financial Mechanisms, the Audit Authority
shall, without delay, inform the Cabinet thereof.
Section 11. Obligations and Rights
of the Certifying Authority
(1) The functions of the Certifying Authority shall be
performed by the Treasury.
(2) The Certifying Authority shall fulfil the obligations
arising from the memorandums of understanding.
(3) The Certifying Authority has the right to request and
receive information from the institutions involved in the
management of Financial Mechanisms, the beneficiary of
co-financing, and the project partner which is necessary for
ensuring the fulfilment of its obligations.
(4) The Treasury shall ensure that the functions which it
fulfils as the Certifying Authority in accordance with this Law
are separated from the other functions thereof.
Section 12. Procurement Monitoring
Bureau, Obligations and Rights Thereof
(1) The Procurement Monitoring Bureau has the following
obligations:
1) to ensure ex-ante control of the public procurement
documentation and process of procurement procedure of the
projects and pre-defined projects in accordance with the
procedures and to the extent laid down by the Cabinet;
2) to develop methodology for the performance of
ex-ante control of the public procurement documentation
and process of procurement procedure of the projects and
pre-defined projects (hereinafter - the ex-ante control
methodology).
(2) The Procurement Monitoring Bureau has the right to request
information from the institutions involved in the management of
Financial Mechanisms, the beneficiary of co-financing, and the
project partner which is necessary for ensuring the fulfilment of
the obligations referred to in Paragraph one of this Section.
Section 13. Obligations and Rights
of the Beneficiary of Co-financing
(1) The beneficiary of co-financing has the following
obligations:
1) to ensure the implementation of the project or pre-defined
project according to the project agreement, the laws and
regulations of the Republic of Latvia, the legal acts of the
European Union, and the international law;
2) to ensure that the programme co-financing granted for the
project or pre-defined project is used in accordance with the
principle of sound financial management by following the
principles of efficiency, usefulness, economy, and
proportionality;
3) to ensure that expenditures made within the scope of the
project or pre-defined project are directly related to
achievement of the project objectives and in conformity with the
provisions for the use of the financing granted for the project
implementation;
4) to inform the Programme Operator or the agency with which a
project agreement has been entered into, without delay, of any
changes and circumstances which may have a negative impact on
implementation of the project or pre-defined project;
5) to ensure the preservation and sustainability of the
results of the project or pre-defined project by complying with
the conditions and time periods laid down in the project
agreement;
6) to ensure analytical accounting in accounts of each project
or pre-defined project by codifying all transactions related to
the project or pre-defined project accordingly;
7) to provide information on implementation of the project or
pre-defined project and to ensure access to 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,
the Corruption Prevention and Combating Bureau, the Procurement
Monitoring Bureau, as well as authorities involved in the
management of Financial Mechanisms to the originals of all
documents related to implementation of the project or pre-defined
project, accounting registers, or to ensure their print-outs or
visual images on the screen, as well as access to the site of the
relevant project implementation;
8) to ensure the publicity of the projects and pre-defined
projects;
9) to repay the received programme co-financing to the
Programme Operator or the agency which has not been used or has
been used in non-conformity with the provisions referred to in
Clauses 1, 2, and 3 of this Paragraph.
(2) If the beneficiary of co-financing is not the
commissioning party within the meaning of the Public Procurement
Law, however, it is planned to cover 50 or more per cent of the
programme co-financing from the eligible costs of the project or
pre-defined project and the foreseeable agreement price without
value added tax is equivalent with the threshold value of the
agreement price stipulated by the Cabinet starting from which it
is necessary to publish a notification of procurement in the
Official Journal of the European Union, or exceeds it, the
procurement in the project shall be performed in accordance with
the procedures laid down in the Public Procurement Law.
(3) The beneficiary of co-financing has the following
rights:
1) to receive the programme co-financing, if the project or
pre-defined project has been implemented in accordance with the
laws and regulations of the Republic of Latvia, the legal acts of
the European Union, the memorandum of understanding, and the
project agreement;
2) to implement the project or pre-defined project together
with the project partner by preserving the liability for the
implementation of the project or pre-defined project, achievement
of the objective, eligibility of expenditures, payments, and
performance of the payment procedure, as well as complying with
the laws and regulations issued on the basis of Section 15,
Clause 12 of this Law;
3) to request and receive the information necessary for the
implementation of the project or pre-defined project from the
authorities involved in the management of Financial Mechanisms,
the Procurement Monitoring Bureau, and the project partner.
Section 14. Obligations and Rights
of the Project Partner
(1) A project partner which is an institution of direct or
indirect administration of the Republic of Latvia, another State
institution, a derived public person, a legal or natural person
registered in the Republic of Latvia, or an association of such
persons and which has entered into a cooperation contract with
the beneficiary of co-financing has the following
obligations:
1) to implement the activities of the project or pre-defined
project in conformity with the partnership contract, the laws and
regulations of the Republic of Latvia, the legal acts of the
European Union, and the international law;
2) to ensure that the programme co-financing granted for the
implementation of the activities of the project or pre-defined
project is utilised in accordance with the principle of sound
financial management by complying with the principles of
efficiency, usefulness, economy, and proportionality;
3) to ensure that expenditures of the project partner made
within the scope of the project or pre-defined project are
directly related to achievement of the project objectives and in
conformity with the provisions for use of the financing granted
for the project implementation;
4) to inform the beneficiary of co-financing with which a
partnership contract has been entered into, without delay, of any
changes and circumstances which may have a negative impact on
implementation of the activities of the project or pre-defined
project;
5) to ensure analytical accounting in accounts of the
activities of each project or pre-defined project by codifying
all transactions related to the project or pre-defined project
accordingly;
6) to provide information on implementation of the activities
of the project or pre-defined project and to ensure access to
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, the Corruption Prevention and Combating Bureau, the
Procurement Monitoring Bureau, as well as authorities involved in
the management of Financial Mechanisms to the originals of all
documents related to implementation of the activities of the
project or pre-defined project, accounting registers, or to
ensure their print-outs or visual images on the screen, as well
as access to the site of the relevant project implementation.
(2) If the project partner is not the commissioning party
within the meaning of the Public Procurement Law, however, it is
planned to cover 50 or more per cent of the programme
co-financing from the eligible costs of the project or
pre-defined project and the foreseeable contract price without
value added tax is equivalent with the threshold value of the
agreement price stipulated by the Cabinet starting from which it
is necessary to publish a notification of procurement in the
Official Journal of the European Union, or exceeds it, the
procurement in the project or pre-defined project shall be
performed in accordance with the procedures laid down in the
Public Procurement Law.
(3) The project partner referred to in Paragraph one of this
Section has the following rights:
1) to receive the programme co-financing if the activities of
the project or pre-defined project have been implemented in
accordance with the laws and regulations of the Republic of
Latvia, the legal acts of the European Union, the memorandum of
understanding, and the project agreement entered into by
recipients of co-financing;
2) to request and receive the information necessary for the
implementation of the activities of the project or pre-defined
project from the beneficiary of co-financing, the authorities
involved in the management of Financial Mechanisms, and the
Procurement Monitoring Bureau.
Section 15. Competence of the
Cabinet in Provision of Management of Financial Mechanisms
In order to ensure the management of Financial Mechanisms, the
Cabinet shall determine:
1) the procedures by which a programme agreement shall be
coordinated and entered into and amendments to the programme
shall be made;
2) the procedures for the project application selection and
assessment of the pre-defined projects, the content of the
project application selection regulations, the content of the
regulations for the assessment of the pre-defined projects, the
content of the project agreement, the procedures for entering
into it and making amendments thereto, the content of the
agreement by and between the beneficiary of co-financing and the
project partner and the procedures for its coordination;
3) the procedures for publishing information on programmes,
projects, and pre-defined projects and ensuring compliance with
the requirements for publicity and visual identity of Financial
Mechanisms;
4) the procedures for the implementation of the technical
assistance for the Financial Mechanisms and the fund for
bilateral relations established in accordance with Memorandum of
Understanding;
5) the procedures for planning funds in the State budget for
the implementation of the programmes, projects, and pre-defined
projects co-financed by the Financial Mechanisms, for making
payments, and preparing reports;
6) the cases and procedures by which the Focal Point shall
temporarily suspend inclusion of the expenditures made in the
programme, programme activity, project, and pre-defined project
in the interim financial report or final report of the
programme;
7) the procedures for ensuring the monitoring and control of
Financial Mechanisms;
8) the procedures for reporting irregularities detected in the
management of Financial Mechanisms, as well as for writing-off,
withholding or recovery of expenditures made incorrectly, and
also for applying the proportional financial correction;
9) the procedures and amount in which the Programme Operator,
the agency, and the Procurement Monitoring Bureau shall perform
ex-ante control of the procurement documentation and the
procurement procedure of the project and pre-defined project;
10) the procedures for provision and examination of
information on application of value added tax within the
framework of the programme, projects, and pre-defined projects,
and taking a decision to include the value added tax in the
eligible costs;
11) the procedures for ensuring functions of the Audit
Authority in the management of Financial Mechanisms;
12) the objective of the programme, the available financing,
the results to be achieved, the Programme Operator, the agency
and its obligations if the agency is implementing a part of the
obligations of the Programme Operator, the requirements for the
project applicant or the applicant of the pre-defined project,
the requirements for project partners if such are invited, the
project application assessment criteria, the conditions for the
activities to be supported, for the eligibility of costs, for
unilateral notice of termination of a project agreement, the
procedures for the implementation of activities of the bilateral
cooperation fund if such are provided for in the programme, as
well as the conditions for the control of aid for commercial
activity if aid for commercial activity is provided for in the
programme.
Chapter III
Project Application Selection and Taking a Decision on a Project
Application
Section 16. Project Application
Selection
(1) The Programme Operator or agency shall perform project
application selection in accordance with the laws and regulations
which have been issued on the basis of Section 15, Clauses 2 and
12 of this Law. The project application selection regulations
shall be developed and after co-ordination with the Focal Point
approved by the Programme Operator or agency. If the project
application selection regulations are developed by the agency, it
shall coordinate the regulations also with the Programme
Operator.
(2) Notification of call for project application selection and
indication to website on which project application selection
regulations are published, and also a notification of extension,
discontinuation or termination of project application selection
shall be submitted by the Programme Operator or agency for the
publication in the official gazette Latvijas
Vēstnesis.
(3) A project applicant shall draw up and submit a project
application in accordance with the requirements of the project
application selection regulations.
Section 17. Project Application
Assessment Committee
(1) The Programme Operator or the agency shall establish a
project application assessment committee which consists of at
least three members for the assessment of project applications.
When establishing the project application assessment committee,
the Programme Operator shall take into account the provisions of
the programme agreement.
(2) The representative of the Focal Point may participate in
the meeting of the project application assessment committee as an
observer.
(3) The project application assessment committee, when
performing its obligations, is entitled to invite experts.
Section 18. Types of Decisions of
the Programme Operator and the Agency
(1) The Programme Operator or the agency shall issue an
administrative act or take an administrative decision in
conformity with the legal status of the project applicant.
(2) If the project applicant is a natural person, a legal
person, or an association of such persons, the decision of the
Programme Operator and the agency shall be an administrative
act.
(3) If the project applicant is an institution of direct or
indirect administration, another State institution, or a derived
public person, the decision of the Programme Operator and agency
is an administrative decision.
(4) The administrative decision referred to in Paragraph three
of this Section shall be issued in the written procedure, and it
shall have the following parts:
1) the name and address of the Programme Operator or
agency;
2) addressee - the project applicant;
3) determination of facts;
4) justification of the administrative decision;
5) a separate list of the legal norms applied (indicating also
Section, Paragraph, Clause or Sub-clause of the law or
regulation);
6) the rights assigned to the addressee or the rights
rejected;
7) conditions (where necessary);
8) the procedures for contesting a decision.
Section 19. Approval of a Project
Application, Approval with a Condition or Refusal
(1) The Programme Operator or agency, on the basis of the
opinion provided by the project application assessment committee,
shall take a decision to approve a project application, approve
with a condition or to reject it.
(2) A decision to approve a project application shall be taken
if it conforms to the project application assessment criteria and
financing for the project implementation is available within an
open call.
(3) A decision to approve a project application with a
condition shall be taken if a project applicant must carry out
the activities laid down by the Programme Operator or agency in
order for the project application to fully conform with project
application assessment criteria and the project could be
implemented appropriately. Conditions may be included in the
decision and performance thereof shall be controlled by taking
into account the project application selection regulations. The
Programme Operator or agency shall notify of an opinion on the
fulfilment of the condition included in the decision within one
month from the day of submitting the updated project application.
If any of the conditions laid down in the decision is not
fulfilled or is not fulfilled within the time period laid down in
the decision, a project application shall be regarded as
rejected.
(4) The decision to reject a project application shall be
taken if it does not conform to the project application
assessment criteria and the rectification of the irregularity in
accordance with Paragraph three of this Section would affect the
project application on its merits, as well as if the project
application conforms to the project application assessment
criteria, however, financing for implementation of the project is
not available within open calls.
(5) If a project application is submitted after the end date
for submission of the project application, it shall not be
assessed. The Programme Operator or agency shall inform the
project applicant thereof. If the project application is rejected
due to the reasons referred to in this Paragraph and the project
applicant appeals the rejection to the court, the court ruling of
the Administrative District Court on the relevant issue may not
be appealed.
Section 20. Time Period for Taking a
Decision
The Programme Operator or agency shall take a decision to
approve a project application, to approve with a condition or to
reject it within four months after the end date for submission of
the project application.
Section 21. Adjusting a Project
Application
A project application after submission thereof until taking a
decision to approve the project application, to approve with a
condition or to reject it cannot be adjusted.
Section 22. Contesting and Appeal of
Decisions of the Programme Operator and Agency
(1) A project applicant may contest and appeal the decisions
referred to in Section 18, Paragraph one of this Law in
accordance with the following procedures:
1) a decision of the agency may be contested by submitting the
relevant application to such manager of the Programme Operator to
which the agency is functionally subordinated in conformity with
Section 9, Paragraph three of this Law. The administrative act
issued by the Programme Operator on the contested decision of the
agency may be appealed by submitting an application to the
relevant courthouse of the Administrative District Court. The
administrative decision taken by the Programme Operator on the
contested decision of the agency may not be appealed;
2) a decision of the Programme Operator may be contested by
submitting the relevant application to the head of such
institution of direct administration within the scope of which
the Programme Operator has been established. The administrative
act issued by the head of the institution of direct
administration on the contested decision of the Programme
Operator may be appealed by submitting an application to the
relevant courthouse of the Administrative District Court. The
administrative decision taken by the head of the institution of
direct administration on the contested decision of the Programme
Operator may not be appealed.
(2) An opinion on the fulfilment of the condition included in
the decision shall be contested and appealed in accordance with
the same procedures and within the same time periods as the
decision on the fulfilment of the condition included wherein the
opinion was prepared. The opinion on the fulfilment of the
condition included in the decision may be contested and appealed
separately from the decision in which the condition is
included.
Chapter IV
Assessment of the Pre-defined Project and Issuance of the
Opinion
Section 23. Assessment of the
Pre-defined Project
(1) The Programme Operator or agency shall perform the
assessment of the pre-defined project in accordance with the
regulations for the assessment of pre-defined projects. The
regulations for the assessment of pre-defined projects shall be
developed and approved by the Programme Operator or agency. If
the assessment regulations are developed by the agency, it shall
coordinate the regulations with the Programme Operator.
(2) The applicant of the pre-defined project shall prepare and
submit the pre-defined project in accordance with the
requirements of the regulations referred to in Paragraph one of
this Section.
(3) After assessment of the pre-defined project the Programme
Operator or agency shall prepare an opinion with a positive
assessment of the project or an opinion with a condition that the
applicant shall perform the activities specified by the Programme
Operator or agency for the pre-defined project to completely
conform to the regulations referred to in Paragraph one of this
Section and the project could be implemented accordingly. The
conditions shall be included in the opinion and their fulfilment
shall be controlled by complying with the regulations for the
assessment of pre-defined projects. The Programme Operator or
agency shall notify the project applicant of the fulfilment of
the conditions included in the opinion within one month from the
day of submitting the updated project.
(4) The opinion on assessment of the pre-defined project may
be contested and appealed in accordance with the procedures which
are laid down in Section 22 of this Law for contesting and
appealing the decisions of the Programme Operator and agency.
Section 24. Time Period for the
Issuance of the Opinion
The Programme Operator or the agency shall provide an opinion
with a positive assessment of the pre-defined project or an
opinion with a condition within four months after the end date
for submitting the project.
Section 25. Committee for Assessment
of Application for Pre-defined Projects
(1) For assessment of the pre-defined projects the Programme
Operator or agency shall establish the committee for the
assessment of pre-defined projects.
(2) The representative of the Focal Point may participate in
the meeting of the committee for the assessment of pre-defined
projects as an observer.
(3) The committee for the assessment of pre-defined projects,
when performing its obligations, is entitled to invite
experts.
Chapter V
Procedures for the Resolution of Disputes regarding the Financing
Allocated under the European Economic Area Financial Mechanism or
the Norwegian Financial Mechanism
Section 26. Procedures for the
Resolution of Disputes if the Beneficiary of Co-financing is a
Natural Person or a Legal Person
If the beneficiary of co-financing is a natural person or a
legal person, or an association of such persons, disputes
referring to the performance of a project agreement, including
disbursement of allocated grant, continuation of disbursement, or
recovery thereof, shall be settled in accordance with the civil
legal procedures. Documents which are drawn up and taken for the
performance of the activities referred to in the first sentence
of this Section (for example, decisions, opinions, warnings,
agreement, and other documents related to the fulfilment of the
agreement) shall not be examined in accordance with the
procedures of administrative procedure.
Section 27. Procedures for the
Resolution of Disputes if the Beneficiary of Co-financing is an
Institution of Direct or Indirect Administration, Another State
Institution, or Derived Public Person
(1) If the beneficiary of co-financing which is an institution
of direct or indirect administration, another State institution,
or derived public person, and the disagreement arises for the
Programme Operator or agency due to the decision taken within the
scope of the project agreement on disbursements of the allocated
grant or continuation of costs, or another decision, and an
agreement has not been reached via negotiations, the beneficiary
of co-financing may contest it by submitting an application to
the Programme Operator or head of such institution of direct
administration accordingly within the scope of which the
Programme Operator has been established.
(2) The Programme Operator or head of the institution of
direct administration shall evaluate the application of the
beneficiary of co-financing referred to in Paragraph one of this
Section and take one of the following decision within a month
after receipt of the application:
1) to leave the decision of the agency or Programme Operator
unchanged;
2) to revoke the decision of the agency or Programme Operator
completely or in any part and, if necessary, to assign the agency
or Programme Operator to re-examine the objections of the
beneficiary of co-financing by taking into account the
instructions of the Programme Operator or head of the institution
of direct administration;
3) to issue other decision in terms of content.
(3) If the time period laid down in Paragraph two of this
Section cannot be complied with due to objective reasons, the
Programme Operator or head of the institution of direct
administration may extend it for a time period that is not longer
than four months from the day of receipt the application by
notifying an applicant thereon.
(4) The Programme Operator or head of the institution of
direct administration shall obtain the information which is
necessary in order to take the administrative decision referred
to in Paragraph two of this Section in accordance with the
procedures laid down in the Administrative Procedure Law and the
State Administration Structure Law for the cooperation of
institutions and obtaining information in administrative
procedure in an institution.
(5) The administrative decision referred to in Paragraph two
of this Section taken by the Programme Operator or head of the
institution of direct administration may not be appealed.
Section 28. State Fee in Applying to
the Court
The Programme Operator and agency shall not pay a State fee,
in applying to a court of general jurisdiction in respect of a
contractual dispute.
Chapter VI
Final Provisions
Section 29. Rights to Become
Acquainted with a File
(1) A project applicant or applicant of a pre-defined project
has the right to become acquainted with the project file
submitted thereby at any stage of the process by taking into
account the condition laid down in Paragraph two of this
Section.
(2) A project applicant or applicant of a pre-defined project
is entitled to become acquainted with the assessment materials
(including expert opinions, minutes and decisions of the
assessment committee) of the project application or application
of the pre-defined project submitted thereby only after a
decision to approve, to approve with a condition or to reject the
project application, or opinion with a positive assessment of the
pre-defined project, or opinion with a condition has entered into
effect.
(3) The Programme Operator or agency shall provide the
information referred to in Paragraph two of this Section within
10 working days after receipt of the request or within five
working days after receipt of the request shall invite the
project applicant or applicant of the pre-defined project to
become acquainted with the requested information on time mutually
acceptable in the institution.
Section 30. Freedom of
Information
(1) A file of a project of a natural person or legal person
shall be restricted access information until the time when a
decision to approve the application or reject it or opinion on
the fulfilment of the conditions included in the decision, or
opinion on a positive assessment of the pre-defined project, or
opinion on the fulfilment of the conditions included in the
assessment has entered into effect. After entering into effect of
the abovementioned decision or opinion the file of the project
shall be available to the extent and in accordance with the
procedures laid down in the Freedom of Information Law.
(2) A project file of an institution of direct administration,
a derived public person or another State institution shall be
generally accessible information, except for the summary of the
project budget, including a plan for project costs. The
information of the abovementioned project shall be available to
the extent and in accordance with the procedures laid down in the
Freedom of Information Law after the end date for submitting the
project application or pre-defined project. The information
referred to in Section 29, Paragraph two of this Law in relation
to the assessment of the project application and pre-defined
project shall be available after the decision to approve the
project application, to approve with a condition, or to reject
it, or opinion with a positive assessment of the pre-defined
project, or opinion on the fulfilment of the conditions included
in the assessment has entered into effect.
Section 31. Time Period for Storage
of Documents
The institutions involved in the management of Financial
Mechanisms, the beneficiary of co-financing, and project partners
shall store the originals of all documents related to
implementation of the programme, project or pre-defined project
of the Financial Mechanisms, or their derivatives for three years
after approval of the final programme report, unless the legal
acts governing granting of aid for commercial activity lay down
another time period for storage of documents.
Transitional Provisions
1. The Cabinet shall issue the regulations referred to in
Section 15, Clauses 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11 of this
Law until 1 October 2018.
2. The Cabinet shall, within one year after the Norwegian
Ministry of Foreign Affairs or the European Economic Area
Financial Mechanism Committee has approved the programme concept
note, issue the regulations referred to in Section 9, Paragraph
one and Section 15, Clause 12 of this Law.
This Law has been adopted by the Saeima on 19 April
2018.
The President R. Vējonis
Riga, 9 May 2018
1 The Parliament of the Republic of
Latvia
Translation © 2018 Valsts valodas centrs (State
Language Centre)