AGREEMENT ON DEVELOPMENT CO-OPERATION between

THE GOVERNMENT OF THE REPUBLIC OF LATVIA and

THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

THE GOVERNMENT OF THE REPUBLIC OF LATVIA AND THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA, hereafter referred to as "the Parties",

REAFFIRMING the friendly relations exis­ting between the two States and their peoples,

TAKING INTO CONSIDERATION the guidelines of the OECD Development Assistance Committee (DAC), the co-operative relationship of the European Union and the states of the Western Balkans and Eastern Europe (hereafter referred to as "the Region"), and the existing framework agreements, and reaffirming the efforts of the international community in the area,

RECALLING to the objectives of the European Neighbourhood Policy and the importance to strengthen co-operation between the European Union, its member countries and the neighbouring countries,

DESIRING that the Republic of Latvia contributes to the economic and social development of the Republic of Moldova and to its fulfilling of the development objectives, with the assistance of the international organizations, financial institutions and other donors,

NOTING the importance of a regional development approach, aiming at contributing to peace, security, prosperity and stability in the region,

HAVING IN MIND that respect for democratic principles, general principles of international law as well as human rights are leading principles in the development co-operation relationship between the two countries,

HAVE AGREED as follows:

Article 1

Objective

The objective of this Agreement shall be development co-operation between the Parties, namely, co-operation to encourage equitable economic and social development in the fields of mutual interest.

Article 2

Target areas

The target areas of co-operation are as follows:

a) promotion of the development of the democratic and civil society;

b) promotion of the development of national economy;

c) assistance in the reform process of state administration and defence system, strengthening of public institutions;

d) environmental protection;

e) education;

f) social development and health;

g) justice and home affairs;

as well as other areas agreed within the Joint Committee as referred to in Article 4 of this Agreement.

Article 3

Technical assistance activities

Within the framework of this Agreement, the Government of the Republic of Latvia will support technical assistance activities in the field of development co-operation, including:

a) assignment of Latvian experts, consultants and other specialists (hereinafter referred to as Latvian experts) to Moldova in order to provide training, consultations or other kind of technical assistance;

b) visits of the citizens of the Republic of Moldova to Latvia which may take form of study tours, specialized training sessions and other activities;

c) sending of Latvian experts in missions to Moldova to study and analyze opportunities for Latvia's assistance;

d) granting of scholarships (the support of training facilities and programmes) to nationals of the Republic of Moldova for studies and professional training in Latvia, in Moldova or a third country;

e) provision of equipment, materials, goods and services required for the successful execution of technical assistance activities;

f) development and carrying out of colla­borative research, studies and projects;

g) other activities designed to contribute to the attainment of the objective of this Agreement;

Article 4

Joint Committee

1. In order to achieve the objective defined in Article 1 of this Agreement the Parties shall establish a Joint Committee to be responsible for the planning and co-ordinating of the technical assistance activities in the field of development co-operation. The functions of the Committee include:

a) establishing priorities for the technical assistance;

b) reviewing and reporting on progress in the technical assistance activities to the Parties;

c) recommending to the Parties any appropriate changes to the technical assistance activities including budget for co-operation and future development;

d) and other function as may be agreed upon by the Parties.

2. The Joint Committee shall exchange all relevant information on other activities in the field of development co-operation carried out between the Parties, including grant programs and projects.

3. The Joint Committee shall be composed of two members from each Party.

Article 5

Privileges granted to the Latvian experts involved in the activities of development co-operation

Referring to the Latvian experts who participate in the activities of development co-operation in Moldova, the Republic of Moldova shall:

a) exempt experts from any duties, taxes and other fiscal charges in respect of all remunerations paid to them by the Republic of Latvia;

b) exempt experts and their dependants from paying customs duties, taxes and other fiscal charges of new or used household and personal boons, imported into Moldova within six months of their arrival to Moldova;

c) make provisions for importation or purchase from bond of one motor-vehicle without paying any customs duty, taxes or other compulsory charges by each member of experts staying for a longer period than one year within six months of first arrival in Moldova;

d) provide assistance to experts and their dependants in customs clearance and other entry and exit controls, furnish entry and exit visas at any time and exempt experts and their dependants from payment of fees and all other charges connected therewith;

e) afford experts and their dependants the treatment during their stay in the Republic of Moldova and repatriation or evacuation facilities in times of national or international crises not less favourable than that accorded to comparable development co-operation experts of any other country or international organization.

Article 6

Supplies and Professional and technical material and services

1. Boons, services and other forms of property financed within the framework of development co-operation between the Parties of the Republic of Latvia shall be exempted from any duties, taxes or any other charges that can be applied in the Republic of Moldova;

2. Materials, equipment and vehicles imported into Moldova for the purpose of implementing joint activities shall be exempted from all customs duties, charges, taxes and dues.

Article 7

Compatibility with European Community policies

1. In the implementation of this Agreement, the Republic of Latvia shall respect its obligations arising from the European Union acquis.

2. Technical assistance activities financed under the particular programme shall comply with European Union policies, including those concerning environmental protection, gender equality, transport, Trans European Networks (TEN), competition, as well as public procurement.

Article 8

Involvement of other donors

1. The parties agree that other countries and/or international organizations both from the UN development system and others, as well as other institutions of regional co-ope­ration may participate in the financing support for the implementation of technical assistance activities under this Agreement.

2. The financial support from other partners shall not exceed 90 per cent of total project value.

Article 9

Impediments and force majeure

In case of impediments to the implementation of this Agreement due to force majeure, recognized by the Parties (such as war, civil unrest or natural disasters), the Parties may agree on temporary suspension of technical assistance activities that are being implemented.

Article 10

Settlement of disputes

Disputes arising with respect to the implementation, application or performance of this Agreement shall be settled by means of negotiations between the Parties in framework of a Joint Committee named in Article 4 of this Agreement.

Article 11

Final provisions

1. This Agreement shall enter into force on the date of receipt of the later notification through diplomatic channels by which either Party notifies the other Party that its internal legal requirements for the entry into force of this Agreement have been fulfilled.

2. This Agreement is concluded for an indefinite period of time, unless either Party terminates it by written notification through diplomatic channels. This Agreement shall cease to apply six (6) months following the receipt of such notification.

3. This Agreement may be amended by mutual written consent of both Parties. Any amendment shall enter into force under the same procedures required for entry into force of the present Agreement.

Done in Chisinau on 3 April, 2006, in two original copies, in the Latvian, Moldavian and English language, all texts being equally authentic. In case of divergent interpretation the English text shall prevail.

FOR THE GOVERNMENT OF THE REPUBLIC OF LATVIA

FOR THE  GOVERNMENT  OF THE REPUBLIC  OF MOLDOVA