Trade Facilitation and Institutional Support Project. Turkmenistan, Ukraine, Uzbekistan

Transcription

1 77&LANG=RUS The European Union s TACIS TRACECA Programme for Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan Trade Facilitation and Institutional Support Project for Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan Progress Report I February 2005 This project is funded by the European Union A project implemented by Dornier Consulting & KLC Consortium

2 REPORT COVER PAGE Project Title Trade Facilitation and Institutional Support Contract Number Countries Name Address Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan. Local operator EC Consultant PS IGC TRACECA AZ 1005, 8/2, Aliyarbekov St. Baky, Azerbaijan AZ Consortium of Dornier Consulting / KLC Zeppelin-Werftgelaende 31 Postfach 1307 D Friedrichshafen Germany Tel. number Fax number l.trenkova@ps.traceca-org.org; office@ps.traceca-org.org Contact Person Mrs. Lyudmila TRENKOVA Dr. Martin BOTH martin.both@dornier-consulting.com Signature Date of report: February 2005 Reporting period: September 2004 February 2005 Author of report: Dornier Consulting GmbH /KLC TRACECA [Task manager] [name] [signature] [date] EC M & E team [name] [signature] [date] EC Delegation [name] [signature] [date] 2

3 TABLE OF CONTENTS 1. PROJECT SYNOPSIS SUMMARY OF THE PROJECT PROGRESS SINCE THE START 6 3. SUMMARY OF THE PROJECT PLANNING FOR THE REMAINDER OF THE PROJECT 8 4. PROJECT PROGRESS IN REPORTING PERIOD 10 PROJECT PROGRESS REPORT 12 OVERALL OUTPUT PERFORMANCE PLAN (1) OVERALL OUTPUT PERFORMANCE PLAN (2) RESOURCE UTILISATION REPORT (I) PROJECT PLANNING FOR THE NEXT REPORTING PERIOD 18 PLAN OF OPERATIONS FOR THE NEXT PERIOD (Work programme) (1). 20 LIST OF ANNEXES ANNEX I Logical Framework Matrix..22 ANNEX II Set of Final Documents of the National Secretaries WG Meeting, February 2005 Istanbul, Turkey 27 ANNEX III Draft Agenda of the IGC Annual Meeting, April 2005, Baky..92 ANNEX IV TRACECA Hotline Questionnaire.94 ANNEX V Schedule of the Meetings, December 2004 February ANNEX VI Background Information on the TRACECA Visa..110 ANNEX VII Legal and Institutional Environment of the IGC TRACECA 112 3

4 1 PROJECT SYNOPSIS Wider Objectives: Promoting the Transport Corridor Europe Caucasus Asia (TRACECA) in order to develop and improve trade within the regions as well as the integration into the international economic structure (access to world market), i.e. to promote TRADE FACILITATION. Specific Project Objectives: A Development and follow-up of the implementation of the TRACECA Visa and the TRACECA freight documentation; B TRACECA Hotline and enhanced communications initiatives; C Support to IGC TRACECA and Permanent Secretariat. Outputs: (A): 1- The local legislation hindering the implementation of the TRACECA Visa concept analysed and recommendation is provided; 2- Follow-up of the results achieved by the CLBTT and HBCP projects is ensured; 3- Pilot scheme for simplified rules for freight movement is designed and implemented; 4- Dissemination seminars for all TRACECA countries to promote the Pilot project results are implemented; 5- Action Plan for the TRACECA Visa and freight documents is prepared. (B): 1- A complete Hot line concept for each country is prepared; 2- TRACECA web-site is updated and section for Frequently Asked Questions (FAQ) is established; 3- Feasibility study for the use of web cam systems is prepared. (C): 1- TRACECA annual meetings are organised; 2- National Secretaries Working Group Meetings are organised and held; 3- Financial Support to the IGC and the Permanent Secretariat is provided; 4- TRACECA Traffic Database is updated; 5- Organisation and management capabilities of the IGC TRACECA PS are strengthened; 6- Dissemination activities are carried out. Activities: A Development and Follow-up of the Implementation of the TRACECA Visa and the TRACECA Freight Documentation 1) In-depth review of documentation and legislation impact concerning international freight in each TRACECA country, including customs and visa agreements; 2) In-depth study of freight and passenger movement legal and legislation processes in each TRACECA country; 3) Assure continuation of outputs from previous and current related projects; 4) Design and implement initial Freight and Passenger Pilot Schemes in order to apply a new set of simplified rules; 5) Organise seminars with all interested parties of TRACECA states in order to plan the expansion of the initial Freight and Passenger Pilot Schemes ; 6) Convergence of the implementation of the TRACECA Visa and the TRACECA Freight Documentation; 7) Promote the harmonisation of both procedures and legislation for TRACECA Visa and TRACECA Freight Documentation through establishing, co-ordinating and agreeing on a time schedule with all MLA states. B TRACECA Hotline and Enhanced Communication Initiatives 1) Carry out an initial evaluation of the hotline concept and establish methodology and practical parameters; 2) Review of the current administrative capabilities of the TRACECA structure in relation to the operation and support of a Hotline and help desk initiatives; 3) Elaborate on the total concept incl. cost analysis, development strategy and 4

5 institutional/administrative requirements/impacts; 4) Evaluate the current TRACECA web page and develop an outline for an interactive centre for frequently asked questions (FAQ); 5) Programming and establishing the FAQ centre on TRACECA web page; 6) Deliver technical and financial support for operation and regular up-dates of the FAQ centre during the project period; 7) Carry out an in-depth research on available experience on the use of web cams at border crossing points in Europe incl. lessons learned; 8) Carry out an economic and financial feasibility study for the use of web cams at specific border crossings in the TRACECA transport corridor. C Support to the IGC TRACECA and the Permanent Secretariat 1) Assist the Permanent Secretariat, the Black Sea PETrA Secretariat and the National Commissions in their work in the framework of the TRACECA Programme; 2) Inform other donors, IFI s, EU-commercial operators and other interested parties on the TRACECA activities and co-ordinate activities; 3) Maintain close contacts with IFI s; 4) Report directly to the Ministries of Transport on all aspects of projects financed by the EC in the frame of TRACECA; 5) Ensure a continuous financing of the Permanent Secretariat and National Secretaries for the period of 24 month in-line with the budget agreed with the project manager in Europe Aid Co-operation office; 6) Support and supervise the EU financial and technical assistance to the Permanent Secretariat in Baky; 7) Ensure a follow up of on-going and previous projects, including analysis of project outputs, evaluation of time tables etc. and provide the required co-ordination; 8) Define future project activities in collaboration with the Permanent Secretariat and the National Commissions; 9) Assist the European Commission in the identification of new projects and give support to the preparation of Terms of references; 10) Assist the Permanent Secretariat in dissemination activities of TRACECA information; 11) Give technical support and ensure regular up-dating of the TRACECA website; 12) Ensure the regular up-dating of the TRACECA traffic database; 13) Organise the IGC TRACECA Annual Meetings 2005 and 2006; 14) Organise PS IGC TRACECA Working group meetings (one in 2004, one in 2005 and two in 2006); 15) Elaborate recommendations for increased capabilities of the current administration 16) Drafting of Terms of Reference. Target Group: Transport administrations and stakeholders in all the TRACECA countries Beneficiaries: Cabinets of Ministers & Ministries of Transport of TRACECA member-states, PS IGC TRACECA, and the National Secretaries Inputs: Technical Assistance will include: International expertise: 420 man/days Team leader; 420 man/days Supervisor to the PS IGC TRACECA; 420 man/days Project Co-ordinator in Central Asia; 231 man/days Short-term International Experts. Local expertise: 420 man/days long-term senior experts; 750 man/days short-term senior experts. Setting up of the regional project offices (Baky, Almaty and Kiev). Funding of the PS IGC TRACECA Activities Project starting date: 27 August, 2004 Project duration: 24 months 5

6 2 SUMMARY OF THE PROJECT PROGRESS SINCE THE START The project implementation for the reporting period described below (August 2004-February 2005) followed the phases and met the targets outlined in the Overall Plan of Operations, Overall Output Performance Plan and Work Programme set in the Inception Report (December 2004). The Consultant s activities and actions were in compliance with the project s Terms of Reference (ToR) and based on the proposed Organisation and Methodology. The Logframe Matrix of the project implementation is attached to the present report (See Annex I Logical Framework Matrix). A Development and Follow up of the TRACECA Visa and TRACECA Freight Documentation Starting from the project mobilisation at the Inception Phase the Consultant began to collect and analyse the documentation in the sphere of international freight in the region as formulated within the task A. Using the collected material and legislative recommendations of the previous TRACECA projects, the Consultant analysed the multilateral accords in which Basic Agreement s 1 Parties are signatory to; researched international conventions to be recommended to the Parties in order to promote international transport and trade facilitation. Thus, the preparatory stage for the situation analysis has been mainly completed. In Annex VII (Legal and Institutional Environment of the IGC TRACECA) the structure of the entire legal and regulatory framework for the IGC and its related organisational entities is illustrated. In an amendment to the article 4 of the Basic Agreement the subject of the TRACECA Visa is described. More details to this issue are given in Annex VI (Background Information on the TRACECA Visa). The Consultant started to investigate the current situation with the passenger movement schemes in Central Asia and the Caucasus. The Consultant studied the recommendations of the CLBTT project and other relevant projects to assure continuation of their outputs. A draft Protocol on Amendments to the Basic Agreement and newly proposed Technical Annexes were further elaborated and discussed at National Secretaries WG Meeting in Istanbul on February 2005 (see Annex II Set of the Final WG Documents, February, Istanbul). These documents will be submitted to the 4th IGC TRACECA Annual Meeting in Baky on April 2005 (see Annex III Draft Agenda of the IGC Annual Meeting, April 2005, Baky). In discussions with representatives of Azerbaijan, Georgia and Turkey the Consultant started with the selection of border crossings for application of the pilot scheme. The initiatives concerning the simplified procedures at border crossings are under preparation. B TRACECA Hotline and Enhanced Communication Initiatives An evaluation process of the Hotline situation in each of the TRACECA countries has started. A correspondent questionnaire has been developed (see Annex IV TRACECA Hotline Questionnaire) and the National Secretaries have been informed about this subject during the Istanbul conference. The concept and structure of the TRACECA Web page has been enhanced. The web page was updated with the information on major events, news and relevant project data. The centre for frequently asked questions (FAQ) has been established and integrated into the Web page. The research on the experiences of the use of web cams at EC border crossings has so far only identified one border crossing with web cams in operation. This is at the border between Finland and Russia. At present, the Consultant did not receive the permission to obtain information from the National Board of Customs of Finland. C Support of the IGC TRACECA and Permanent Secretariat The Consultant is deeply involved in the daily work of the Permanent Secretariat of the IGC TRACECA in Baky. The Consultant s participation is addressed to relevant technical/administrative assistance, informational support, co-ordination among authorities, interregional co-ordination, co-operation with EC Delegations, and liaison with other EC Consultants, donor organisations and representatives of the beneficiary countries. The project supports and supervises the EU financial and technical assistance to the PS. The continuous financing of the PS has been provided without delay and in line with the agreed and approved budget. 1 Basic Agreement on International Transport for Development of the Europe Caucasus Asia Corridor 6

7 Furthermore, the Consultant was able to positively influence the decision-making processes towards future self-financing of PS structures from 2006 onwards. In this respect the Consultant elaborated various financing models and presentations. The self-financing of the PS structures is the indication that the member-states are taking over the ownership of the IGC TRACECA. The measures/actions to increase the capability of the current administration recommended by the Consultant are currently under implementation. Internal regulations for the PS are developed and applied. The Consultant developed employment contracts for the PS staff supported by detailed job descriptions for each of the established positions. Within the tight budget line of PS the Consultant made proposals aimed at enhanced capacities of the PS. The Consultant also carried out the evaluation process for new experts to be employed in the PS IGC TRACECA. The Consultant co-operates with representatives of the international donors (UNDP, ADB, ADB CAREC, UNECE, WB, IDB) in the Caucasus, Central Asia and Ukraine (see Annex V Schedule of Meetings December 2004-February2005). The basic ground for co-operation with these donors and other interested parties has been established. The Consultant also established solid foundation for co-operation with the national transport sector authorities (see Annex V). By reporting on a regular basis to the Ministries of Transport or other relevant authorities the Consultant provides adequate information on all aspects of the projects financed by the EC in the framework of TRACECA. The Consultant provides co-ordination and consultation to ensure the follow-up of on-going and previous projects. The Consultant assisted the European Commission and the EC Delegations in the identification of new projects and is deeply involved in project discussions with beneficiaries. Project identification exercises have been carried out for the action plan Further, the Consultant assisted the EC in preparation of the draft action plan for 2005 (See Annex II Enclosure 10: Action Programme 2005). The Consultant developed a master project fiche for the Programme of 2005 together with a project fiche for the Central Asian Action Programme. Altogether 6 projects were identified, outlined and discussed based on proposals of the beneficiaries. These activities were carried out in close coordination with beneficiaries and the EC. Currently, the Consultant is involved in identification of actions for The Consultant drafted the Terms of References for four forecasted EU-funded projects. TRACECA dissemination materials produced earlier were largely distributed in the region among interested stakeholders and beneficiaries. The Consultant is still often requested by various interest groups to provide handouts and printed materials on TRACECA. However, with the help of the Consultant the TRACECA web page is widely used for posting of new information about the EU Programme and activities of the PS. The web page allows for ample dissemination of the TRACECA materials among interested parties, involves improved presentation and easy access to the information. Two Working Group Meetings of the Permanent Representatives of the IGC TRACECA were organised in Baky (see Annex 1 of the Inception Report), on 6-8 October 2004 and in Istanbul on February 2005 (See Annex II of this Progress Report). The latter meeting elaborated all appropriate documents and proposals for the 4th Annual Meeting of the IGC to be held in Baky on April The data files for the TRACECA Database were profoundly checked. The Consultant delivered a presentation of the findings and possible improvement / enhancement measures at the Istanbul Working Group Meeting (See Annex II Enclosure 11: TRACECA Database Concept Presentation). Simultaneously, the Consultant initiated the evaluation of the current status of data received from each country. The Consultant requested the Permanent Representatives of the IGC to provide the missing data retrospectively and to inform the PS in case any restrictions are imposed on provision of such information. The existing data is being processed and converted into GIS- compatible structures and coding. The Consultant activities entail an objective of capacity building for the PS' staff. The Consultant encourages transferring of the superior responsibility to the PS in its actions and activities. The PS staff members are encouraged to take over more accountability and sovereignty in their daily work. Measures are taken to introduce a continuous process improvement (CPI) and quality assurance. These steps are necessary to improve the institutional functioning of the PS as an internationally recognised interstate organisation. 7

8 3 SUMMARY OF THE PROJECT PLANNING FOR THE REMAINDER OF THE PROJECT The project planning outlined below covers the period from the month 7 (March 2005) through the month 24 (August 2006) of the project implementation. The summary is in compliance with the Overall Plan of Operations, Overall Output Performance Plan, Work Programme and Logframe Matrix (see Annex I). A Development and Follow up TRACECA Visa and TRACECA Freight Documentation The analysis of the local legislation hindering the implementation of the TRACECA Visa concept will be completed. Based on this review concept recommendations agreed with all involved countries will be provided. The Consultant will continue a comprehensive study on the issues of freight and passenger transportation in the TRACECA countries. A report evaluating the impact on local legislations for all TRACECA countries and a report containing legislation processes for freight and passenger movements will be delivered in month 12 of project implementation. It has to be mentioned that the TRACECA Visa concept was originally designed only for humanitarian aid transportation to Afghanistan (see Annex VI). The corresponding amendments have been adopted at the Yerevan Conference of the IGC TRACECA in The ratification of these amendments is still not finalised. During the Istanbul Working Group meeting in February 2005, the ratification progress was discussed. The recommendations will include proposals on how to overcome problems related to ratification of amendment to the TRACECA Visa concept and possible applicability beyond humanitarian aid area. This is understood as one of the follow-up dimensions of the CLBTT project. An action plan to achieve harmonised TRACECA Visa and freight documentation will be elaborated. The pilot scheme for simplified rules for freight movement will be further developed. It is foreseen to have an agreed procedure after discussion with the national border authorities (border guards, customs authorities, emigration officers, etc.) in two countries minimum. A trial run will be carried out and the experiences made will be disseminated in special seminars with National Secretaries. The Consultant will agree on a time schedule for promotion of procedural and legislative harmonisation of TRACECA Visa and TRACECA freight documentation with all MLA parties. B TRACECA Hotline and enhanced Communication Initiatives Based on the filled-in questionnaires distributed during the Istanbul Working Group meeting in February 2005 an analysis of the whole Hotline concept will be made. Based on this a conceptual model will be elaborated and the implementation possibilities will be discussed with the National Secretaries of each country. The report on the TRACECA Hotline issue will be delivered in month 12 of project implementation. This report will contain total concept, practical problems, cost analysis, a progressive development strategy as well as the impact on and the solutions for the local administrations. The TRACECA web page will be updated to contain the major events and achievements of the TRACECA programme. Further programming/updating of the FAQ Centre and provision of the technical/financial support for the web page operation will be secured. The Consultant will continue the research on the use of web cams at selected border crossings in Europe. The feasibility study of the use of web cams will be prepared at the end of month 14. C Support to the IGC TRACECA and Permanent Secretariat Organisational assistance and financial support out of the budget of the PS IGC will be given to the 4 th IGC TRACECA Annual Meeting scheduled for April 2005 in Baky. The 5th IGC meeting and further Working Group meetings of the National Secretaries will be organised as scheduled in the course of the project implementation. The financial support to the IGC TRACECA will be continued. In case the MLA Member States take over the full financing of the PS IGC TRACECA from January 2006 on, the total remaining amount from the project budget allocated for the PS IGC will be made available in However, the joint financing system as well as possible future self-financing schemes require the establishment of PS own accounting system 8

9 and financial reporting structures aside from the EU-compatible accounting system of the Consultant. Starting from March 2005, the Consultant has to assist the PS intensely in the establishment of reliable and transparent accounting processes and systems. Also, the first annual report for 2004 shall be prepared, as 2004 was the first year of Joint Financing System. The updates of TRACECA traffic database will be made. The current situation can be characterised by a lack of data, and therefore requires a concentration on the data collection and processing. The Consultant intends to continue focusing on strengthening the capabilities of the PS. The individual training-on-the-job measures will increase the management capabilities of the PS employees. Furthermore, dedicated in-house training courses addressing identified training needs and carried out by Consultant s staff are envisaged. Other tasks as assistance/reporting to the beneficiaries, coordination with other donors, supervision of the EC financial/technical assistance, follow-up of the EC projects, assistance to the EC in project identification/preparation activities, dissemination of the TRACECA information, updates of the web page will be continued in the same intensity as during first reporting period. 9

10 4 PROJECT PROGRESS IN REPORTING PERIOD A Development and Follow up of the TRACECA Visa and TRACECA Freight Documentation The Consultant carried out the analysis of the documentation in the sphere of the international freight in the region and prepared an introductory platform for the situation analysis. The Consultant progressed with the investigation of passenger movement schemes in the TRACECA regions. The Consultant deliberated the recommendations of the CLBTT project and other relevant projects to secure the continuation of their outputs. As mentioned in Section 2 of the present report, a draft Protocol on Amendments to the Basic Agreement and newly proposed Technical Annexes were further elaborated and discussed at National Secretaries WG Meeting in Istanbul on February 2005 (see Annex II). These documents should be submitted to the 4 th IGC TRACECA Annual Meeting in Baky on April In Annex VII the structure of the whole legal and regulatory framework of the Intergovernmental Commission and its Secretariat as well as the Permanent Representatives of the Secretariat is shown. In an amendment to the article 4 of the Basic Agreement the subject of the TRACECA Visa is described. More to this is mentioned in the Annex VI. In discussions with representatives of Azerbaijan, Georgia and Turkey the Consultant started with the selection of border crossings for the pilot scheme. Initiatives with simplified procedures at border crossings are under preparation. B TRACECA Hotline and Enhanced Communication Initiatives An evaluation process of the Hotline situation in each of the TRACECA countries has been started. A questionnaire has been developed (see Annex IV) and the National Secretaries have been informed about this subject during the Istanbul Working Group Meeting. The TRACECA Web page has been updated and the centre for frequently asked questions (FAQ centre) has been established as an integral part of the TRACECA web page. The research on experience of web cam usage at EC border crossings has so far only identified one border crossing equipped with web cams. This is at the border between Finland and Russia. We did not receive at present the permission to obtain information from the National Board of Custom of Finland. C Support of the IGC TRACECA and Permanent Secretariat The Consultant is involved in the everyday operation of the PS. The Consultant renders technical, administrative and information assistance, informational support, co-ordination among authorities, interregional co-ordination, co-operation with EC Delegations, and liaison with other EC Consultants and donor organisations. The project supports and supervises the EU financial and technical assistance to the PS. The continuous financing of the PS has been provided in time and in line with the agreed and approved budget. The measures/actions to increase the capacity of the current administration recommended by the Consultant are currently being implemented. Internal regulations for the PS are being developed and adapted. The Consultant prepared employment contracts and job descriptions for the PS staff. Within the tight budget line of PS the Consultant made proposals aimed at enhanced capacities of the PS. The Consultant also carried out the evaluation process for new experts to be employed in the PS IGC TRACECA. The Consultant collaborates with the international donors (UNDP, ADB, ADB CAREC, UNECE, WB, IDB) in the TRACECA regions (see Annex V). The major ground for co-operation with these donors has been established. The Consultant maintains co-operation with the national transport sector authorities. By reporting to them on a regular basis the Consultant supplies adequate information on the projects financed by EC in the framework of TRACECA (see Annex V). The Consultant provided co-ordination and consultation to ensure the follow-up of the on going and previous projects. The Consultant assisted the European Commission and the EC Delegations in the identification of new projects and is deeply involved in project discussions with beneficiaries. Project identification exercises have been carried out for the action plan Further, the Consultant assisted the EC in preparation of the draft action plan for 2005 (See Annex II Enclosure 10: Action Programme 2005). The Consultant developed a master project fiche for the Programme of 2005 together with a project fiche for the Central Asian Action Programme. Altogether 6 projects were identified, outlined and discussed based on proposals of the beneficiaries. These activities were carried out in close coordination with beneficiaries and the EC. 10

11 Currently, the Consultant is involved in identification of actions for The Consultant drafted the Terms of References for four forecasted EU-funded projects. TRACECA dissemination materials produced earlier were largely distributed in the region. TRACECA web page is widely used for posting of new information about the TACIS TACECA Programme and activities of the PS. The web page allows for better dissemination of the TRACECA materials among interested parties, involves improved presentation and easy access to the information of a specific interest. A Working Group Meeting of the Permanent Representatives of the IGC TRACECA was organised in Baky on 7-8 October 2004 and in Istanbul on February 2005 (See Annex II). The last meeting elaborated the documents for the 4th Annual Meeting of the IGC in Baky on April The data files for the TRACECA Database were checked. The Consultant delivered a presentation of the findings at the Istanbul Working Group Meeting. At the same time, the Consultant initiated the evaluation of the current status of data received from each country. The Permanent Representatives of the IGC were requested to provide the missing data retrospectively and to inform the PS in case any restrictions are imposed on provision of such information. The existing data is being processed and converted into GIScompatible structures and coding. The Consultant worked on the objective of the capacity building for the PS' staff. The Consultant encourages transferring of the superior responsibility to the PS in order to facilitate its transformation into a self-sustainable organisation which can take on responsibility. 11

12 PROJECT PROGRESS REPORT Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Project title: Trade Facilitation and Institutional Page: Project number: Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Support 1 of 2 Turkmenistan, Ukraine, Uzbekistan. Planning period: September 2004 February 2005 Prepared on: February 2005 EC Consultant: Dornier Consulting and KLC Project objectives: Promoting the transport Corridor TRACECA in order to develop an improved trade within the regions as well as the integration into the international economic structures (access to world markets) i.e. promote TRADE FACILITATION TIME FRAME INPUTS # ACTIVITIES IMPLEMENTED Months PERSONNEL EQUIPMENT INTERNATIONAL LOCAL AND MATERIAL OTHER Planned Utilised Planned Utilised Planned Utilised Planned Utilised Inception and Setting-Up x x A: Development and follow-up of the Implementation of the TRACECA Visa and the TRACECA Freight Documentation 1. A1 In-depth review of docs/legislation x x x x x x 2. A2 Study of Freight/Passenger Schemes x x x x x x 3. A3 Follow-up of previous projects x x x x x x 4. A4Design/implement initial Freight/Passenger Schemes x x x x x x 5. A5 Organise seminars for A4 6. A6 Conv.implem.TRACECA Visa &Freight 7. A7 Harmonis. proced&legis.visa&freight SUBTOTAL TASK A B: TRACECA Hotline and Enhanced Communication Initiatives 8. B1 Hotline evaluation x x x x x 9. B2 Review current TRACECA structure x x x x 10. B3 Elaborate total concept 11. B4 Evaluate current web page/ est.faq x x x x x x 12. B5 Programming FAQ 13. B6 Tech & Financial support FAQ 14. B7 Carry out web cam research x x x x x 12

13 15. B8 Economic & Fin Feasib: Web cams SUBTOTAL TASK B: C: Support to IGC TRACECA and Permanent Secretariat C1 Assist PS, BlackSeaPetra 16. and NS x x x x x x x 17. C2 Info donor/ifi/eu/com. Operators x x x x x x x 18. C3 Maintain close contacts with IFI x x x x x x x 19. C4 Report directly to MoT x x x x x x x 20. C5 Ensure financing x x x x x x x 21. C6 Support and supervise EU finance x x x x x x x 22. C7 Ensure follow up of projects x x x x x x x 23. C8 Define fut. Project activities x x x x x x x 24. C9 Assist EC in identification of projects x x x x x x x 25. C10 Assist in dissemination x x x x x x x 26. C11 Technical support Web site x x x x x x x 27. C12 Ensure updating Data Base x x 28. C13 Organise Annual Meetings 29. C14 Organise Working Group Meeting x x 30. C15 Elaborate on administration x x x x x x 31. C16 Draft Terms of Reference x x x SUBTOTAL TASK C: TOTAL

14 OVERALL OUTPUT PERFORMANCE PLAN (1) Project title: Trade Facilitation and Institutional Support Project number: Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan. Planning period: 27 Aug Aug Prepared on: February 2005 EC Consultant: Dornier Consulting GmbH / KLC Page: 1 of 2 Outputs Agreed Objective Verifiable Indicators Assumptions Component A: The local legislation hindering the implementation of the TRACECA Visa concept analysed and recommendation provided by August, 2005 Follow-up of the results achieved by the CLBTT and HBCP projects is ensured by October 2005 Pilot scheme for simplified rules for freight movement designed and implemented by August 2005 Dissemination seminars for all TRACECA countries to promote the Pilot project results implemented by fourth conference of the National Secretaries Working Group Action Plan for the TRACECA Visa and freight documents prepared by February 2006 Problems identified and recommendations to mitigate these are delivered; unified document for use by Customs proposed Recommendations on how to overcome problems related to ratification of TRACECA Visa concept amendments provided to the IGC; three draft technical annexes produced by the CLBTT Project reviewed and proposed to the PS WG meetings for approval Appropriate border crossings for the implementation of pilot scheme selected; At least two countries are involved in the implementation of a pilot scheme after twelve months from the contract signing Two Seminars have been held subsequent to workshops of the National Secretaries on Passenger and freight Pilot Schemes Action Plan containing actions to be taken in order to achieve harmonised TRACECA Visa and Freight documentation submitted to the Project partners for further approval Sufficient information provided by the National Secretaries Implementation is feasible only fully supported by the Parties and, if the national authorities involved are pro-active Project beneficiaries in the selected Pilot countries showed commitment to participate in the Pilot Scheme Project partners are sufficiently committed Commitment of the project beneficiaries 14

15 Project title : Trade Facilitation and Institutional Support OVERALL OUTPUT PERFORMANCE PLAN (2) Project number: Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan. Page : 2 of 2 Planning period: 27 Aug Aug Prepared on: February 2005 EC Consultant: Dornier Consulting GmbH / KLC Outputs Agreed Objectives / Verifiable Indicators Constrains and Assumptions C/A Component B: A complete Hot line concept for each country is prepared by December 2005 Problems identified and limitations and recommendations to mitigate these are addressed to minimum 9 countries. National Secretaries provided sufficient support and information supply TRACECA web-site updated and section for Frequently Asked Questions (FAQs) established by March 2005 Feasibility study for the use of web-cam systems prepared by December 2005 Component C: IGC TRACECA annual meetings organized in line with the schedule of the IGC Member States. In 2005 it is scheduled for April National Secretaries Working Group Meetings organize and held by February 2005 (estimation of the IGC) Financial Support to the IGC and Permanent Secretariat provided by continually TRACECA Traffic Data base updated by continually Organisation and management capabilities of the IGC TRACECA PS strengthened by April 2005 Dissemination activities carried out by continually Minimum two up-dates by the end of the project made; specialized software supporting FAQ installed A Feasibility Study on the use of Web-cams at specific border crossings is available tenth months after contract signatory Indicators to result C One IGC Meeting held in 2005 and one IGC Meeting held in 2006 One WG meeting held in 2004, one in 2005 and two in 2006 Permanent Secretariat activities and related MLA structures are funded within the agreed and approved budget TRACECA traffic data is rescued, restructured and made available for potential users Recommendations on capacity and institutional development of existing TRACECA structures are available and discussed in eight months after contract signatory TRACECA activities / information / actual data are disseminated via web and seminars No constraints Sufficient number of border crossings along the TRACECA corridor can be selected/identified for investigations on use of web-cams, which have no access and photograph restrictions. No constraints foreseen Sufficient statistical data and information could be received from the national institutions involved Sufficient co-operation attitude from the PS staff 15

16 Project title: Trade Facilitation and Institutional Support RESOURCE UTILISATION REPORT (I) Project number: Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan. Page: 1 of 2 Planning period: September 2004 February 2005 Prepared on: February 2005 EC Consultant: Dornier Consulting and KLC Project objectives: Promoting the Transport Corridor TRACECA in order to develop an improved trade within the regions as well as the integration into the international economic structures (access to world markets) i.e. promote TRADE FACILITATION RESOURCES/INPUTS TOTAL PLANNED PERIOD PLANNED PERIOD REALISED TOTAL REALISED AVAILABLE FOR REMAINDER PERSONNEL MD MD MD MD MD Task A: Development and follow-up of the implementation of the TRACECA Visa and the TRACECA freight documentation Long-Term International Experts Team Leader Senior Experts Sub-total Long-Term and Short-Term Local Experts Senior Experts Sub-total Short-Term International Experts Senior Experts Sub-total SUBTOTAL TASK A Task B: TRACECA Hotline and enhanced communications initiatives Long-Term International Experts Team Leader Senior Experts Sub-total Long-Term and Short-Term Local Experts Senior Experts

17 Sub-total Short-Term International Experts Senior Experts Sub-total SUBTOTAL TASK B Task C: Support to IGC TRACECA and Permanent Secretariat Long-Term International Experts Team Leader Senior Experts Sub-total Long-Term and Short-Term Local Experts Senior Experts Sub-total Short-Term International Experts Senior Experts Sub-total SUBTOTAL TASK C TOTAL TASKS A, B and C OTHER RESOURCES (%) Incidentals: Project Team 100% 25% 15% 15% 85% Incidentals: Permanent Secretariat 100% 25% 25% 25% 75% 17

18 5 PROJECT PLANNING FOR THE NEXT REPORTING PERIOD A Development and follow-up of the implementation of the TRACECA Visa and the TRACECA freight documentation A1 In-depth review of documentation and legislation impact concerning international freight in each TRACECA country, including customs and visa agreements are finalised; A2 In-depth study of freight and passenger movement legal and legislation processes in each TRACECA country will be delivered; A3 Assure continuation of outputs from previous and current related projects will be ongoing; A4 The Design and implementation of an initial Freight and Passenger Pilot Schemes in order to apply a new set of simplified rules is to be finalised; A5 The seminars with all interested parties of TRACECA states in order to plan the expansion of the initial Freight and Passenger Pilot Schemes will be organised; A6 Activities in respect of convergence of the implementation of the TRACECA Visa and the TRACECA Freight Documentation will start; A7 The promotion of the harmonisation of both procedures and legislation for TRACECA Visa and TRACECA Freight Documentation through establishing, co-ordinating and agreeing on a time schedule with all MLA states will start. B TRACECA Hotline and enhanced communication initiatives B1 The initial evaluation of the hotline concept and the establishment of methodology and practical parameters are completed; B2 The review of the current administrative capabilities of the TRACECA structure in relation to the operation and support of a Hotline and help desk initiative will be in progress, and is intended to be completed in the month 8 of the project implementation; B3 The Elaboration on the total concept incl. cost analysis, development strategy and institutional/administrative requirements/impacts will start at the beginning of the period; B4 The Evaluation of the current TRACECA web page and development of an outline for an interactive centre for frequently asked questions (FAQ) will be further enhanced and perfected; B5 Programming and establishing the FAQ centre on TRACECA is already finalised in this reporting period; B6 The technical and financial support for operation and regular up-dates of the FAQ centre during the project period will be delivered further on; B7 The in-depth research on available experience on the use of web cams at border crossing points in Europe incl. lessons learned will be finalised. B8 Carry out an economic and financial feasibility study for the use of web cams at specific border crossings in the TRACECA transport corridor will start. C Support to the IGC TRACECA and Permanent Secretariat C1 Assistance to the Permanent Secretariat, the Black Sea PETrA Secretariat and the National Commissions in their work in the framework of the TRACECA Programme will be continued; C2 Information of other donors, IFI s, EU-commercial operators and other interested parties on the TRACECA activities and co-ordinate activities will be continued; C3 Maintenance of the close contacts with IFI s will be continued; C4 Reporting directly to the Ministries of Transport on all aspects of projects financed by the EC in the frame of TRACECA will be continued; 18

19 C5 A continuous financing of the Permanent Secretariat and National Secretaries for the period of 24 month in line with the budget agreed with the project manager in EuropeAid Co-operation office will be ensured further on; C6 The provision of the support and supervision of the EU financial and technical assistance to the Permanent Secretariat in Baky will be continued; C7 A follow up of on-going and previous projects, including analysis of project outputs, evaluation of time tables etc. and provision of the required co-ordination will be continued; C8 The future project activities in collaboration with the Permanent Secretariat and the National Commissions will be defined; C9 The assistance to the European Commission in the identification of new projects and support to the preparation of Terms of references will be continued; C10 The assistance to the Permanent Secretariat in dissemination activities of TRACECA information will be rendered; C11 The provision of the technical support and ensured regular up-dating of the TRACECA website will be continued; C12 The regular updating of the TRACECA traffic database will be organised; C13 Organise the IGC TRACECA Annual Meetings 2005 and 2006 the 4th Annual IGC Meeting will be organised and implemented; C14 PS IGC TRACECA working group meetings for 2005 and 2006 will be organised; C15 Further recommendations for increased capabilities of the current administration will be continued and it appears to be necessary to start with concrete measures (in-house training courses, establishment of an PS-accounting and reporting system). C16 The Draft of Terms of Reference for the projects of the TRACECA Action Programme 2004 are requested 19

20 Project title : Trade Facilitation and Institutional Support Project number : PLAN OF OPERATIONS FOR THE NEXT PERIOD (Work programme) (1) Beneficiary countries: Armenia, Azerbaijan, Bulgaria, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan. Planning period : March 2005 August 2005 Prepared on : February 2005 EC Consultant : Dornier Consulting / KLC Page : 1 of 1 Project objectives :Promoting the transport Corridor TRACECA in order to develop an improved trade within the regions as well as the integration into the international economic structures (access to world markets) i.e. promote TRADE FACILITATION TIME FRAME INPUTS (months) PERSONNEL EQUIPMENT OTHER No March April May June July August International Local & FURNITURE A: Development and follow-up of the Implementation of the TRACECA Visa and the TRACECA Freight Documentation 1. A1 In-depth review of docs/legislation 2. A2 Study of Freight/Passenger Schemes x x x x x x x x x x x 3. A3 Follow-up of previous projects x x x x x x x x x x x x 4. A4Design/implement initial x x x x x x x x x x Freight/Passenger Schemes 5. A5 Organise seminars for A4 x x 6. A6 Conv.implem.TRACECA Visa &Freight x x x x x x x x x x x x 7. A7 Harmonis. proced&legis.visa&freight x x x x x x x x x x x x B: TRACECA Hotline and Enhanced Communication Initiatives 8. B1 Hotline evaluation x x B2 Review current TRACECA structure x x x x 10. B3 Elaborate total concept x x x x x x x x x x x x 11. B4 Evaluate current web pages x x x 12. B5 Programming FAQ x x x 13. B6 Techn. Financial support FAQ x x x x x x x x x 20

21 14. B7 Carry out web cam research x x x x 15. B8 Economic and fin Feasib. Web cams x x x x x x x x x x x x C: Support to IGC TRACECA and Permanent Secretariat C1 Assist PS, BlackSeaPetra and NS x x x x x x x x x x x X 18. C2 Info to donor/ifi/eu/comm. x x x x x x x x x x x x Operators 19. C3 Maintain close contacts with IFI x x x x x x x x x x x x 20. C4 Report dr. MoT x x x x x x x x x x x x 21. C5 Ensure financing x x x x x x x x x x x x 22. C6 Support and supervise EU finance x x x x x x x x x x x x 23. C7 Ensure follow up of projects x x x x x x x x x x x x 24. C8 Define fut. Project activities x x x x x x x x x x x x C9 Assist EC in identification of projects x x x x x x x x x x x x 26. C10 Assist in dissemination x x x x x x x x x x x x 27. C11 Technical support Web site x x x x x x x x x x x x 28. C12 Ensure updating Data Base x x x 29. C13 Organise Annual Meetings x x 30. C14 Organise Working Group Meeting x x 31. C15 Elaborate on administration x x x x x x 32. C16 Draft Terms of Reference x x TOTAL

22 ANNEX I Logical Framework Matrix 22

23 Logical Framework Matrix Overall Goal: Intervention Logic / Strategy Promoting the Transport Corridor Europe Caucasus Asia (TRACECA) in order to develop and improve trade within the regions as well as the integration into the international economic structure (access to world market), i.e. to promote TRADE FACILITATION. Specific Objectives: A Development and follow-up of the implementation of the TRACECA Visa and the TRACECA freight documentation Indicators / Objectively Verifiable Volume of freights transported in support NIS transport corridors; volume of passenger transported by different modes of transport; volume and share of intra-nis trade and trade between NIS and EU; (tentative indicators, to be specified more precisely in the course of Project implementation) - The number of countries adopted the TRACECA Visa concept is enlarged; - Draft Technical Annexes on Multimodal Transport and Freight Forwarders activities recommended by the PS NS WG Meeting or adopted by the IGC Sources of Verification Traffic data, statistical information Project documentation Final Documents of the WG Meetings Assumption Willingness of the partner states to: - cooperate within other NIS countries and EU; - approximate transport legislation and technical practices to the EU standards, - to contribute financially to the implementation of the above standards and practices Willingness of the TRACECA states to adopt and implement Visa concept into their national legislations B TRACECA Hotline and enhanced communications initiatives TRACECA Hotline concept is approved by the majority of beneficiaries Final Documents of the IGC Annual Meeting Project partners have enough political will and financial capabilities to implement project recommendations C Support to IGC TRACECA and Permanent Secretariat Efficient autonomous operation of the PS and other TRACECA structures assured Decision of the state authorities of the parties to the MLA Commitment of the PS staff and project partners to cooperate is in place; agreement on joint financing is signed by the Parties and implemented 23

24 Intervention Logic / Strategy Indicators / Objectively Verifiable Sources of Verification Assumption Results Component A: The local legislation hindering the implementation of the TRACECA Visa concept analysed and recommendation provided Problems identified and recommendations to mitigate these are delivered; unified document for use by Customs proposed Report Sufficient information provided by the National Secretaries Follow-up of the results achieved by the CLBTT and HBCP projects is ensured Recommendations on how to overcome problems related to ratification of TRACECA Visa concept amendments provided to the IGC; three draft technical annexes produced by the CLBTT Project reviewed and proposed to the PS WG meetings for approval Appropriate border crossings for the implementation of pilot scheme selected; at least two countries are involved in the implementation of a pilot scheme after twelve months from the contract signatory Ratification notifications and Final Documents of the IGC Meeting or NS WG meeting Implementation is feasible only fully supported by the Parties and, if the national authorities involved are proactive Pilot scheme for simplified rules for freight movement designed and implemented Report Project beneficiaries in the selected Pilot countries showed commitment to participate in the Pilot Scheme Dissemination seminars for all TRACECA countries to promote the Pilot project results implemented Two Seminars have been held subsequent to workshops of the National Secretaries on Passenger and freight Pilot Schemes Seminar materials Project partners are sufficiently committed Action Plan for the TRACECA Visa and freight documents prepared Action Plan containing actions to be taken in order to achieve harmonised TRACECA Visa and Freight documentation submitted to the Project partners for further approval Report and feedbacks from the Project beneficiaries Commitment of the project beneficiaries 24

25 Intervention Logic / Strategy Indicators / Objectively Verifiable Sources of Verification Assumption Component B: A complete Hot line concept for each country is prepared. Problems identified and limitations and recommendations to mitigate these are addressed to minimum 9 countries. A concept paper, comprising cost analysis National Secretaries provided sufficient support and information supply TRACECA web-site updated and section for Frequently Asked Questions (FAQs) established Minimum two up-dates by the end of the project made; specialized software supporting FAQs installed Web-site No constraints Feasibility study for the use of web-cam systems prepared A Feasibility Study on the use of web-cams at specific border crossings is available tenth months after contract signatory Report Sufficient number of border crossings along the TRACECA corridor can be selected/identified for investigations on use of web-cams which have no access and photograph restrictions. 25

26 Intervention Logic / Strategy Indicators / Objectively Verifiable Sources of Verification Assumption Component C: IGC TRACECA annual meetings organized Indicators to result C One IGC Meeting held in 2005 and one IGC Meeting held in 2006 Final Documents of the IGC and WG meetings National Secretaries Working Group Meetings organised and held One WG meeting held in 2004, one in 2005 and two in 2006 Financial Support to the IGC and Permanent Secretariat provided TRACECA Traffic Data base updated Organization and management capabilities of the IGC TRACECA PS strengthened Permanent Secretariat activities and related MLA structures are funded within the agreed and approved budget TRACECA traffic data is rescued, restructured and made available for potential users Recommendations on capacity and institutional development of existing TRACECA structures are available and discussed in eight months after contract signatory Confirmation from the PS management Sufficient and reliable information and data received from national institutions Report No constraints foreseen Cooperative attitude from national institutions involved in supply of statistical data and relevant information Sufficient cooperation from PS IGC TRACECA staff Dissemination activities carried out TRACECA activities / information / actual data are disseminated via web and seminars Web-site and seminar handouts 26

27 ANNEX II Set of Final Documents of the National Secretaries WG Meeting February 2005 Istanbul, Turkey List of Enclosures to the Annex 2 Enclosure 1: Recommendations of the Permanent Secretariat; Enclosure 2: List of Participants Enclosure 3: Agenda Enclosure 4: Draft IGC Strategy Enclosure 5: Draft Protocols on Amendments and Draft Technical Annexes Enclosure 6: PS Budget Presentation Enclosure 7: Agreement on Joint-Financing of the PS Enclosure 8: Presentation of New EC Funding Enclosure 9: Action Programme Enclosure 10: Action Programme 2005 Enclosure 11: TRACECA Database Concept Presentation 27

28 ANNEX II Enclosure 1: Recommendations of the Permanent Secretariat MEETING OF THE PERMANENT SECRETARIAT OF THE INTERGOVERNMENTAL COMMISSION TRACECA Istanbul / Republic of Turkey, February 17-18, 2005 ЗАСЕДАНИЕ ПОСТОЯННОГО СЕКРЕТАРИАТА МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Стамбул / Турецкая Республика, февраля 2005 г. RECOMMENDATIONS of the PERMANENT SECRETARIAT The Meeting of the Permanent Secretariat of the Intergovernmental Commission TRACECA (PS IGC TRACECA) was held on February 17-18, 2005 in Istanbul, the Republic of Turkey. The Meeting was also attended by Mr. Efstathios Dalamangas, the Principal Administrator of the Europe Aid Cooperation Office, Mr. Athanasios Boitsios, Task Manager of Transport and Energy Projects, responsible for TRACECA Programme, managers and experts of the current TRACECA project Trade Facilitation and Institutional Support (TFIS). The List of the Meeting participants is attached hereto. (Appendix 1) Mr. Binali Yildirim, the Minister of Transport of the Republic of Turkey, has welcomed the participants of the Meeting. Participants to the PS Meeting discussed the issues in accordance with the Agenda attached hereto. (Appendix 2) The Meeting has made the following recommendations: 1. Implementation of Decisions of the Third Annual Meeting of the IGC TRACECA Having heard the reports of the National Secretaries on ratification or implementation of internal legislative procedures in connection with the Protocol of Amendments to the Basic Agreement, signed at the Third Annual Meeting of IGC TRACECA (Yerevan, 9-10 October 2003), the participants of the Meeting again emphasized the importance of the amendments introduced and the work carried by Azerbaijan and Bulgaria, which were first to ratify the Protocol, the PS addressed the remaining Parties with request to complete their internal legislative procedures at their earliest. Upon the information notified to the PS by the Ministry of Foreign Affairs of Azerbaijan, the Depositary of the Basic Agreement, the Secretary General informed the Meeting on the positions notified by the Parties about the countries, which advised on their intention to accede to the Basic Agreement, namely, Afghanistan, Iran and Pakistan. PS addressed the IGC TRACECA with request to facilitate the earliest notification of positions of the remaining Parties. The National Secretary of Armenia handed over to the Secretary General the copy of Note of the MFA Armenia, addressed to the Depositary of the Basic Agreement, which expresses the agreement on accession of Afghanistan to the Basic Agreement. Considering that, as a matter of fact, all the Parties to the Basic Agreement, the PS should address the Depositary Department of the MFA, Azerbaijan with request to accelerate the final procedures anticipating accession of Afghanistan in order to provide for the participation of Delegation of Afghanistan as full member of the IGC, in the Forth Annual Meeting of IGC TRACECA. After the report of the PS experts on the work completed in regard to the Draft IGC TRACECA Strategy for development of the transport corridor Europe-the Caucasus-Asia (Appendix 3), and the statements made by the EC representatives and TFIS Project Consultants, the PS recommended that the IGC TRACECA adopts the submitted Draft with due regard to the commentaries of the Parties, and to address the EC with request to assist in development of an Implementation Concept for this IGC TRACECA Strategy. 28

29 Having heard the statements of the Secretary General, the National Secretaries and legal experts of the PS and TFIS Project consultants, considering the work carried out earlier in the Parties by the National legal working group meetings and the outcome of the previous Legal WG Meeting (October 7-8, 2004, the PS has noted unequal readiness to sign the Protocols amending the Basic Agreement. Besides, Georgia and Kazakhstan, for objective reasons, have so far not completed procedures anticipating expression of their attitudes towards amendments proposed. In this regard, the Meeting participants addressed the PS and the TFIS Project experts to prepare for signatory individual Draft Protocols (Appendix 4) amending the Basic Agreement: 1. amending Article 6 of the Basic Agreement, on preferential terms and tariffs 2. amending the Technical Annex on International Road Transport 3. amending the Technical Annex on Customs and Documentation Procedures 4. introducing new Technical Annex on Multimodal Transport 5. introducing new Technical Annex on TRACECA Investments 6. introducing new Technical Annex on Freight Forwarding Operations 2. Joint financing of the PS IGC TRACECA Being informed by the Secretary General on the contributions made by the Parties to the budget of the year 2004, PS addressed the National Secretaries of Armenia, Kazakhstan and Kyrgyzstan with request to facilitate the national procedures relevant to the transfer of contributions from their countries. The Meeting participants were presented with the planned budgets for 2005 and 2006, prepared by the PS management with assistance of the TFIS Project consultants and recommended to the IGC TRACECA to adopt the following decisions: For the year 2005 to approve the budget presented (Appendix 5) and to the same scheme of joint financing of the PS IGC TRACECA, which was applied for the year 2004, i.e.: the Parties shall contribute in equal shares of 7,000 (seven thousand) Euro each, thus providing 84,000 Euro to the budget of the PS IGC TRACECA, is applied. For the year 2006 to approve the budget presented (Appendix 6) and to agree that the Parties should pay in equal shares of 50,000 (fifty thousand) Euro each. It is also recommended that, to ensure continuous financing the Parties should pay in their shares not later than March 31, Draft Agreement on Joint Financing of the PS IGC TRACECA The Meeting Participants have exposed the Draft Agreement on Joint Financing of the Permanent Secretariat IGC TRACECA (Appendix 7) to the article-by-article scrutiny and recommended to the Governments of the Parties to have it signed at the next IGC TRACECA Conference in April Participation of the Permanent Secretariat in the Platform for Cooperation Under the European Neighborhood Policy, after completion of TACIS programme The Meeting participants were presented with the new policy of the European Union towards the EU neighboring states. (Presentation Appendix 8). Having discussed the information received, PS has recommended to the Parties to brisk up their joint participation in the implementation of tasks posed by the Ministerial Conference on Transport Co-operation between the EU, the Black Sea/Caspian littoral States and their neighboring countries (Baky, November 2004), to ensure consistency and continuity between TRACECA and the work carried out in the context of the newly created High Level Group on the extension of trans-european networks. PS recommended that the IGC adopts a dedicated decision on the subject. 5. TRACECA projects. Action Programme Action Plan 2005 and 2006 Task Manager of Transport and Energy Projects, responsible for TRACECA Programme has presented the Action Plan for 2003, comprising projects to start this year and informed about the projects of Action Plan 2004 (Appendix 9), which have approved for financing. The Meeting participants have also learned about the list of projects included in Action Plan 2005 (Appendix 10). Having heard to the argumentation of the EC representatives, PS recommend to the IGC TRACECA to adopt decision on preparation of the Action Plan 2006 in order to have the project proposals from the Parties received by the PS no later than June 2005 in line with the EC schedule. PS Representatives (National Secretaries) in the Parties, where the Action Plan 2003 projects will be implemented, have signed the Statements of Endorsements. 29

30 6. PS IGC TRACECA Data Base The Meeting participants thanked the TFIS Project Consultants for the presented concept of setting up the TRACECA Data Base (Appendix 11), and ensured in the readiness to provide the information required for data inputs, where possible, and to help obtaining permissions for data access, where appropriate and needed. 7. Hot Line Concept The TFIS Project Team Leader addressed the National Secretaries with request to provide information on operation of the TRACECA Hot Line in the territories of their countries. The National Secretaries agreed to provide the data by completion of the questionnaires received. 8. Preparation for the Forth Annual Meeting IGC TRACECA The Meeting participants noted the dates of conduct of the 4 th IGC Meeting in Baky, Azerbaijan, April 2005, advised by the Secretary General upon approval of the Government of the Republic of Azerbaijan, agreed the drafts of the List of Participants of the Meeting, the Agenda of the Meeting and Final Resolutions, to be considered and adopted by the IGC. 10. Miscellaneous National Secretaries agreed to provide the necessary information on the condition of office equipment and suitability of technical and communication facilities in the Permanent Representations of the PS in the Parties. The next Meeting of the PS will take place on April 20, one day prior to the Fourth IGC Meeting of TRACECA, in Baky, the Republic of Azerbaijan. The present Recommendations made following an accepted practice of finalizing WG meetings, are addressed to the IGC TRACECA and to every Party for follow-up and adoption of relevant decisions. Lyudmila Trenkova Secretary General of the PS IGC TRACECA 30

31 ANNEX II Enclosure 2: List of Participants MEETING OF THE PERMANENT SECRETARIAT OF THE INTERGOVERNMENTAL COMMISSION TRACECA Istanbul/Republic of Turkey, February 2005 List of Participants Appendix 1 ЗАСЕДАНИЕ ПОСТОЯННОГО СЕКРЕТАРИАТА МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Стамбул, Турецкая Республика, февраля 2005 г. PERMANENT SECRETARIAT, BAKY OFFICE (INCLUDING SUPPORTING TEAM) Mrs. Lyudmila Trenkova, Secretary General of the PS IGC TRACECA Mr. Bodo Roessig, Team Leader, Trade Facilitation and Institutional Support (TFIS) Project Mrs. Angelika Zwicky, Supervisor of the PS IGC TRACECA, TFIS Project Mr. Vadim Turdzeladze, TRACECA Coordinator for Central Asia, TFIS Project Mr. Thomas Lamnidis, Legal Expert, TFIS Project Ms. Anna-Maria Tutea, Legal Expert, TFIS Project Ms. Arina Komarova, Legal Expert of the PS IGC TRACECA Mr. Yaroslav Bely, Road Expert of the PS IGC TRACECA EUROPEAN COMMISSION Mr. Efsthasios Dalamangas, Principal Administrator, EuropeAid Cooperation Office Mr. Athanasios Boitsios, Task Manager for Transport and Energy Projects, responsible for TRACECA programme PERMANENT REPRESENTATIVES NATIONAL SECRETARIES OF THE PERMANENT SECRETARIAT OF IGC TRACECA IN THE PARTIES TO THE MLA Republic of Armenia Mr. Gagik Grigoryan Republic of Azerbaijan Mr. Akif Mustafayev Republic of Bulgaria Ms. Albena Peeva (representative of the National Secretary) Georgia Mr. Lasha Khmiadashbili Republic of Kazakhstan Mr. Yerzhan Suleymenov Kyrgyz Republic Mr. Suleiman Zakirov Republic of Moldova Mr. Eduard Biriucov Romania Ms. Irina Aurelia Popescu (representative of the National Secretary) Republic of Tajikistan Mr. Solih Mouminov Republic of Turkey Mr. Barish Tozar Ukraine Mr. Yuri Tertyshnik Republic of Uzbekistan Mr. Olimjon Buranov EXPERTS FROM THE PARTY OF TURKEY Mr. Izzet Ishik, Head of Department, General Directorate of Land Transport, Ministry of Transport Mrs. Mujde Ozturkmen, Expert, Ministry of Transport Mr. Yunus Emre Bayrak, Assistant EU Expert, Ministry of Transport Ms. Burcu Yakut, Assistant EU Expert, Ministry of Transport EPXERTS FROM ROMANIA Mr. Constantin Girbea, Ambassador of Romania in Georgia Mr. Mihai Hura, Vice General Director, General Directorate for Politics and Legislation regarding the income to the common consolidated budget Ministry of Public Finances Mr. Adrian Frantz Kalapis, Senior Counsellor, Head of Department of the General Directorate for Road Transports, Ministry of Transport, Construction and Tourism BACKUP AND SUPPORT TEAM Ms. Olga Senyuk, Office in Kiev Ms. Yulia Usatova, Office in Almaty Ms. Nana Ismaylova, Office in Baky Ms. Fatima Atakishiyeva, Office in Baky 31

32 Annex II Enclosure 3: Agenda Appendix 2 MEETING OF THE PERMANENT SECRETARIAT OF THE INTERGOVERNMENTAL COMMISSION TRACECA Istanbul/Republic of Turkey, February 2005 ЗАСЕДАНИЕ ПОСТОЯННОГО СЕКРЕТАРИАТА МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА Г. Стамбул, Турецкая Республика, февраля 2005 AGENDA 1. Current state of implementation of the Decisions of the Third Annual Meeting of IGC TRACECA (Yerevan, October 9-10, 2003). - Information on the state of ratification / internal legislative procedures of the Protocol on Amendments to the MLA, adopted at the Third Conference of IGC TRACECA - Status of Accession Process to the MLA by the new countries (Afghanistan / Iran / Pakistan) - TRACECA Strategy and further activities on its implementation - Protocol(s) on amendments of the MLA 2. Co-financing of the PS IGC TRACECA in Draft Agreement of Joint Financing of the PS IGC TRACECA 4. What comes after TACIS involvement of IGC, PS and its representatives in the area of the new policy of EU towards neighboring countries 5. TRACECA Projects. Action Programme Action Plans 2005 and Traffic Data Base of the PS IGC TRACECA 7. The TRACECA Hot Line Concept 8. Preparation for the Fourth Annual Meeting of IGC TRACECA 9. Miscellaneous 32

33 ANNEX II Enclosure 4: Draft IGC Strategy Draft Appendix 3 MEETING OF THE PERMANENT SECRETARIAT OF THE INTERGOVERNMENTAL COMMISSION TRACECA Istanbul / Republic of Turkey, February 17-18, 2005 ЗАСЕДАНИЕ ПОСТОЯННОГО СЕКРЕТАРИАТА МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Стамбул / Турецкая Республика, февраля 2005 г. Strategy of the Intergovernmental Commission of TRACECA for development of the international transport corridor Europe-Caucasus-Asia (TRACECA) for The analysis of forecasting the main lines of world economy development evidences that major financial, commodity and information flows of the XXI century will be focused in the triangle the USA-Europe-Asia. In this context the most important task of countries, who signed the Basic Multilateral Agreement on international transport for development of the transport corridor Europe-Caucasus-Asia (the Basic Agreement) on September 8, 1998 at the historic summit in Baky, consists in taking advantage in full measure of their geopolitical locations and economic opportunities through the development of transport networks across the international transport corridor Europe-Caucasus-Asia (TRACECA) that has been officially acknowledged by the leading international institutions (European Commission, EEC UN, ESCAP UN and ECMT) as the natural transit bridge between Europe and Asia. Today the trade turnover between Asia and Europe exceeds 3 trillion US Dollars a year and the share of transport expenses in this turnover is more than 200 billion US Dollars. This fact shows that the existing trade triangle US-Europe-Asia is not a virtual reality, and statesparticipants to the Basic Agreement are actually situated on the high road linking Europe and Asia. Taking into account the geographic situation of TRACECA countries in the context of trade relations development between Europe and Asia, and also the location of major manufacturers of goods in Asia and consumers in Europe, the rise of freight flows on one hand and logical reverse freight flow on the other hand we can make practically logical conclusion freight movement (delivery) through international transport corridor Europe-Caucasus-Asia (East-West-East) looks much more attractive in comparison with any other existing alternative routes. After signature of the Basic Agreement the legal basis for the organization of international transit traffic on a more improved level was created. Of great importance is the fact that the TRACECA transport networks pass along the territories of countries that are rich in mineral resources and energy supply with further prospective development. These regions have not so far lost well-trained competent human resources. Transit development in these countries will undoubtedly contribute to the growth of production, population employment in the regions. Whichever political, economic changes would happen the chosen, developed and tested by experience transport corridor Europe Caucasus - Asia with its wide network will remain a stabilizing long-term factor, creating favourable investment climate and positively influencing regional and interregional integration processes. As proven fact of above mentioned, in August 2003 the Governments of Islamic Republic of Iran and Afghanistan and in January 2004 Pakistan, submitted official applications to the Ministry of Foreign Affairs of Azerbaijan, as depositary of the Basic l Agreement. The wills of these countries were officially presented during the meeting of Intergovernmental Commission of TRACECA in Yerevan on October 9-10, The participants of Third IGC TRACECA meeting supported the initiation of Governments of Iran and Afghanistan. This fact once more proves that the transport corridor Europe Caucasus - Asia with its broad transport network exists, functions and widens. 33

34 Taking into account fast development of telecommunication and information processes in the XXI century which at the same time brings about electronic trade development through the world-wide Internet it should be pointed out that in this context the role of transport sharply grows. But there is another factor that could play an important role: due to the electronic sales growth there will arise the problem of increasing the rates and improving service of the ordered goods and freight delivery. The demands for high-speed technologies of freight deliveries will most likely be satisfied by air, road and railway transport. In this respect we will have to examine a great number of factors: freight delivery rates, the distance that a carrier (operator) should cover, mode of transport. It should be stressed that in the market of transport services there will be brought to the forefront a transit aspect, new shorter transport routes, corresponding level of transit transportation and attractive competitive tariff, i.e. the commercial triangle well-known in transit transportation (Time- Service-Tariff). Nevertheless, sea transport will prospectively keep its positions on the transoceanic routes. Moreover, it should be pointed out that some transnational shipping companies are carrying out the investigations and negotiations with the shipbuilders on the issues of container vessels construction of new generation ( TEU and more). The creation and development of any transport corridor with relevant transport links does not mean the efforts of one separate country transport specialists only. Allocation and movement of transit freight flows in the international transport corridor is organized and it functions in multifactor systems of coordinates. The establishment and development of the international transit corridor Europe Caucasus - Asia and its transport networks with its transport networks is on the one hand necessary to protect the newly independent states in the region from domination over communicational and transport flows by any country, on the other hand to provide a guaranteed continuous outlet of the energy supplies of the Caspian Sea and the Caspian region on the whole into the international markets. It is important to note that the main political and economic factors with utmost key influence to the regional contouring of the Parties to the Basic Agreement during integration processes of globalisation of the modern world are followings: Maintaining stable economic growth of GDP not less than 5-10% per year. Increasing investments into the economy because reinvestments and the inflow of foreign investments are very small and do not correspond to the demands of these countries. Suspending the outflow of capital from the countries, because shortage of capital does not allow countries to pursue concentrated investment policy. Building-up technology sphere. Conducting coordinated policy between government structures of states-participants to the Basic Agreement and IGC TRACECA for the purposes of harmonization of the legal basis for the functioning of the international transport corridor Europe Caucasus Asia. For the achievement of this large-scale task solution, which is attraction of additional freight flow to the TRACECA transport network, the considerable modernization of transport complexes will be required. In order to create attractive investment environment by decreasing at the maximum any non-commercial risks or non-calculated risks, it is necessary to find common approach, in particular common legal formula, finding solutions for the questions of the legal basis in force and the investments guarantees needed for further development of the international transport corridor Europe-Caucasus-Asia. The estimated volume of investments for the TACIS countries needed for stage wise modernization and development of transport infrastructures and complexes will approximately exceed 50 billion US Dollars. In comparison for the purposes of solving the similar tasks China, has spent more than 30 billion US Dollars for the last eight years. At the same time the history of TRACECA countries shows that it is too difficult to carry out large-scale modernization of transport infrastructure using only internal financial resources and loans of International Financial Institutions. Taking into account the above said, considering the problems of infrastructure modernization in these countries as the whole and not only the problem of one transport mode or several related modes in a separate country, solution of which directly proportionally brings to the increase of competitiveness and transit transportation, it is necessary for the TRACECA Intergovernmental Commission to define the following strategic important tasks in near future ( ) required for the development of transport networks of international transport corridor Europe-Caucasus-Asia: 34

35 1. Inclusion of transit program into the national priorities and creation of its legal basis with the aim to implement coordinated state transit policy. 2. Creation and development, in close cooperation with IGC TRACECA and relevant state structures and bodies of states-participants to the Basic Agreement, coordinated program (action plan) for the development of transport corridor Europe-Caucasus-Asia ant its transport networks the main of which will be the trade and transport facilitation as well as development and deepening of regional and interregional cooperation; 3. Reduction of the tax burden on the transport infrastructure development projects being of strategic importance for the states-participants to the Basic Agreement, if it does not contradict their state policy, first of all of the value-added tax and customs fees; 4. Allocation of investments and proceeds from international grants, loans to the development and reconstruction of transport and communication infrastructures; 5. Assistance to concerned transport companies, ship owners, ports, railways and other objects of transport infrastructure participating in transit transportation process; 6. Implementation and improvement of modern and more flexible form of investment attraction by creation and development, such as: Modern forms of concession of the transport infrastructure objects with active participation of private investors; Free/special economic zones for better regional cooperation and trade and transport facilitation; Transport logistic centres (modules) to decrease costs of transportation by organizing transportation with optimum ways; TRACECA Guarantee Trust Fund to mitigate non-calculated risks for any transport investment or transportation; TRACECA Economic Interest Grouping to create and develop legal framework of implementing investment and/or transport projects; TRACECA Industrial Advisory Forum (Panel) bringing the industries next to the IGC TRACECA for realization of common tasks and take an advantage from world wide experience; Settlement of Disputes to solve any potential dispute between the transport players according to the requirements of a globalised market. 7. Creation and development of basis for the freight and carrier liability, operators and stevedore companies insurance. 8. Creation and elaboration of Single Transport System of TRACECA with the purpose of creation of conditions for free movement of goods, services and labour, - for better economic regional cooperation; 9. Development of international cooperation in the field of transit transport first with the countries which are due to their geopolitical position prefer the transit traffic through Europe- Caucasus-Asia corridor. 10. Implementation of active and adequate PR activity in the area of trade and transport facilitation in order to reach more transparency concerning the safety of transit freights in statesparticipants to the Basic Agreement. Pragmatic attitude and rational realization of these tasks will drastically influence the geopolitical activity of states-participants to the Basic Agreement and has a chance to become one of the factors stimulating the development of not only the trade and transport but also the globalisation of regional and interregional integration processes for the purpose to achieve long-term political stability. 35

36 ANNEX II Enclosure 5: Draft Protocols on Amendments and Draft Technical Annexes Draft FOURTH ANNUAL MEETING OF THE TRACECA INTERGOVERNMENTAL COMMISSION Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА Баку / Азербайджанская Республика, апреля 2005 г. PROTOCOL ON AMENDMENTS TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT OF THE EUROPE - THE CAUCASUS - ASIA CORRIDOR In accordance with Article 11 (Presentation of Amendments and Additions) of the Basic Multilateral Agreement on International Transport for Development of the Europe - the Caucasus -Asia Corridor (Basic Agreement) it was agreed to make the amendment to Clause 2 of the Article 6 of the Basic Agreement, to read: The Parties have agreed that should preferential terms and tariffs be established between two Parties or between a Party/Parties with a third country/countries, for types of transport referred to in Article 1 of the Basic Agreement, no less preferential terms and tariffs will be applicable for all Parties to the Basic Agreement. This Protocol comes into force in accordance with Articles 11 ( Presentation of Amendments and Additions ) and 13 ( Entry into force ) of the Basic Multilateral Agreement on International Transport for the Development of the Europe - the Caucasus - Asia Corridor. Done on the 4th Annual Meeting of the TRACECA Intergovernmental Commission on the transport corridor Europe - the Caucasus - Asia at Baky on 21 of April 2005 in one original copy in the English and Russian languages, both of them being equally authentic. In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed this Protocol. For the Republic of Armenia For the Republic of Azerbaijan For the Republic of Bulgaria For Georgia For the Republic of Kazakhstan For the Kyrgyz Republic For the Republic of Moldova For Romania For the Republic of Tajikistan For the Republic of Turkey For Ukraine For the Republic of Uzbekistan 36

37 Draft FOURTH ANNUAL MEETING OF THE TRACECA INTERGOVERNMENTAL COMMISSION Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА Баку / Азербайджанская Республика, апреля 2005 г. PROTOCOL ON AMENDMENTS TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT OF THE EUROPE - THE CAUCASUS - ASIA CORRIDOR In accordance with Article 11 (Presentation of Amendments and Additions) of the Basic Multilateral Agreement on International Transport for Development of the Europe - the Caucasus -Asia Corridor (Basic Agreement) it was agreed to incorporate the following additions to the Technical Annex on International Road Transport to the Basic Agreement 1. Supplement the Article 2 Definitions with new clauses stipulated as follows: 9. The term «TRACECA permit» means a multilateral permit, valid for an unlimited number of journeys between Parties and for the period of one year, issued to a Carrier (specific individual or a legal entity) for a specific motor vehicle to effect international transport of goods by road and approved by a Party to the Basic Agreement. 10. The term Quota means the number of permits available for a Party to the Basic Agreement, which are allocated and issued by the Permanent Secretariat in close collaboration with the competent authorities of the Parties and approved by the Intergovernmental Commission. 2. Supplement the Article 3 Access to the Market with new clauses, stipulated as follows: 3. Each Party acknowledges the TRACECA permit issued in accordance with the provisions of this Technical Annex as a permit document for a motor vehicle and motor vehicle with trailer or semi-trailer to enter, depart and transit via the Parties territories. The TRACECA permit holder is entitled to effect back loading on the territory of the Parties in line with the national legislation of the Parties. 4.The TRACECA permit system functions on the basis of a quota system, providing for transport between the Parties to the Basic Agreement in transit via the territories of one or several Parties to the Basic Agreement by motor vehicles registered in a Party to the Basic Agreement ; 5. A Carrier from one Party is not permitted to transport goods between two points located on the territory of any other Party (cabotage). 6. During international transit transport of goods on the territories of the Parties using the TRACECA permit a motor vehicle shall be exempted from taxes, duties and other payments irrespective of their names and origin excluding trip payment across toll-roads, tunnels and bridges. 7. Permits and other documents required in accordance with the provisions of this Technical Annex shall be available in the motor vehicle they pertain to and shall be produced at the request of competent authorities. 8. The Parties shall establish gradually a quota-free regime, except third country and cabotage transport operations, for bilateral and transit international goods transport by road in line with the relevant principles of the European Union with the aim to create a free market in the Parties. 9. The established quota regime shall not prejudice the benefits already derived from bilateral agreements, which are in force between the Parties as far as free-of-charge permits are concerned. 10. The applications procedures as well as the issue and withdrawal criteria of the TRACECA permits and the other related details will be defined by a Handbook on the use of the TRACECA permit system. 3. To supplement the Technical Annex with a new Article stipulated as follows: Article 6 Charging Policies 1. The Parties agree to take all appropriate steps towards rationalisation and gradual convergence of charging policies for international road transport of goods by taking account of the principles of costrelatedness, non-discrimination and transparency. 2. The Parties shall ensure that tolls and any other forms of user charges may not be imposed at the same time for the use of the same road section. Such charges imposed on carriers shall be based 37

38 on internationally recognised standard elements for the calculation of costs of road transport as well as on units (tonne-km). The respective charges shall be payable in local currency or in an international currency. This Protocol comes into force in accordance with Articles 11 ( Presentation of Amendments and Additions and 13 ( Entry into force ) of the Basic Multilateral Agreement on International Transport for the Development of the Europe - the Caucasus - Asia Corridor. Done on the 4th Annual Meeting of the TRACECA Intergovernmental Commission on the transport corridor Europe - the Caucasus - Asia at Baky on 21 of April 2005 in one original copy in the English and Russian languages, both of them being equally authentic. In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed this Protocol. For the Republic of Armenia For the Republic of Azerbaijan For the Republic of Bulgaria For Georgia For the Republic of Kazakhstan For the Kyrgyz Republic For the Republic of Moldova For Romania For the Republic of Tajikistan For the Republic of Turkey For Ukraine For the Republic of Uzbekistan 38

39 Draft FOURTH ANNUAL MEETING OF THE TRACECA INTERGOVERNMENTAL COMMISSION Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА Баку / Азербайджанская Республика, апреля 2005 г. PROTOCOL ON AMENDMENTS TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT OF THE EUROPE - THE CAUCASUS - ASIA CORRIDOR In accordance with Article 11 (Presentation of Amendments and Additions) of the Basic Multilateral Agreement on International Transport for Development of the Europe - the Caucasus -Asia Corridor (Basic Agreement) it was agreed to incorporate the following additions to the Technical Annex on Customs and Documentation Procedures to the Basic Agreement: 1. Supplement the Article 2, clause 1, International Conventions with new sub-clause with the following content: d. International Convention on the Simplification and Harmonization of Custom Procedures 1973, as amended; e. Convention on custom treatment of pools containers used in International transport 1994; f. Agreement concerning the establishing of global Technical Regulations for Wheeled Vehicles, Equipment and Parts which can be fitted and/or be used on Wheeled Vehicles 1998; g. United Nation Convention on the Liability of Operators of Transport terminals in International Trade Supplement the Article 3 Customs Control with new clause stipulated as follows: 3. Provided that the applied procedures for transit operations are fulfilled in accordance with the requirements of the customs legislation of the relevant state, in this case, goods in international transport including transit: - shall not, as a general rule, be subject to customs examination during the journey except to the extent necessary to ensure compliance with rules and regulations which the relevant customs administration is responsible for enforcing. Flowing from this, the customs authorities shall normally restrict themselves to the control of customs seals and other security measures at points of entry and exit; - shall not be subject to any customs formalities or requirements additional to those of the customs transit regime used for the transit operation. 3. Supplement the Technical Annex with a new Article stipulated as follows: Article 5 Transit Facilitation In order to facilitate the transit of goods, the Party shall: a. if it is the country of shipment, as far as practicable, take all measures to ensure the completeness and accuracy of the information required for the subsequent transit operations; b. if it is the country of destination: - take all necessary measures to ensure that goods in customs transit shall be cleared, as a rule, at the customs office of destination of the goods; - endeavour to carry out the clearance of goods at a place as near as is possible to the place of final destination of the goods. This Protocol comes into force in accordance with Articles 11 ( Presentation of Amendments and Additions and 13 ( Entry into force ) of the Basic Multilateral Agreement on International Transport for the Development of the Europe - the Caucasus - Asia Corridor. 39

40 Done on the 4 th Annual Meeting of the TRACECA Intergovernmental Commission on the transport corridor Europe - the Caucasus - Asia at Baky on 21 of April 2005 in one original copy in the English and Russian languages, both of them being equally authentic. In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed this Protocol. For the Republic of Armenia For the Republic of Azerbaijan For the Republic of Bulgaria For Georgia For the Republic of Kazakhstan For the Kyrgyz Republic For the Republic of Moldova For Romania For the Republic of Tajikistan For the Republic of Turkey For Ukraine For the Republic of Uzbekistan 40

41 Draft FOURTH ANNUAL MEETING OF THE TRACECA INTERGOVERNMENTAL COMMISSION Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА Баку / Азербайджанская Республика, апреля 2005 г. PROTOCOL ON AMENDMENTS TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT OF THE EUROPE - THE CAUCASUS - ASIA CORRIDOR In accordance with Article 11 (Presentation of Amendments and Additions) and Article 10 (Technical Annexes) of the Basic Multilateral Agreement on International Transport for Development of the Europe - the Caucasus -Asia Corridor (Basic Agreement) it was agreed to adopt a new Technical Annex on Multimodal Transport to the Basic Agreement (Annex: Technical Annex to the Basic Agreement on Multimodal Transport). This Protocol comes into force in accordance with Articles 11 ( Presentation of Amendments and Additions and 13 ( Entry into force ) of the Basic Multilateral Agreement on International Transport for the Development of the Europe - the Caucasus - Asia Corridor. Done on the 4th Annual Meeting of the TRACECA Intergovernmental Commission on the transport corridor Europe - the Caucasus - Asia at Baky on 21 of April 2005 in one original copy in the English and Russian languages, both of them being equally authentic. In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed this Protocol. For the Republic of Armenia For the Republic of Azerbaijan For the Republic of Bulgaria For Georgia For the Republic of Kazakhstan For the Kyrgyz Republic For the Republic of Moldova For Romania For the Republic of Tajikistan For the Republic of Turkey For Ukraine For the Republic of Uzbekistan 41

42 Draft FOURTH ANNUAL MEETING OF THE TRACECA INTERGOVERNMENTAL COMMISSION Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА Баку / Азербайджанская Республика, апреля 2005 г. PROTOCOL ON AMENDMENTS TO THE BASIC MULTILATERAL AGREEMENT ON INTERNATIONAL TRANSPORT FOR DEVELOPMENT OF THE EUROPE - THE CAUCASUS - ASIA CORRIDOR In accordance with Article 11 (Presentation of Amendments and Additions) and Article 10 (Technical Annexes) of the Basic Multilateral Agreement on International Transport for Development of the Europe - the Caucasus -Asia Corridor (Basic Agreement) it was agreed to adopt a new Technical Annex on TRACECA investments to the Basic Agreement (Annex: Technical Annex to the Basic Agreement on TRACECA investments). This Protocol comes into force in accordance with Articles 11 ( Presentation of Amendments and Additions and 13 ( Entry into force ) of the Basic Multilateral Agreement on International Transport for the Development of the Europe - the Caucasus - Asia Corridor. Done on the 4th Annual Meeting of the TRACECA Intergovernmental Commission on the transport corridor Europe - the Caucasus - Asia at Baky on 21 of April 2005 in one original copy in the English and Russian languages, both of them being equally authentic. In witness whereof, the undersigned plenipotentiary Heads of Delegations have signed this Protocol. For the Republic of Armenia For the Republic of Azerbaijan For the Republic of Bulgaria For Georgia For the Republic of Kazakhstan For the Kyrgyz Republic For the Republic of Moldova For Romania For the Republic of Tajikistan For the Republic of Turkey For Ukraine For the Republic of Uzbekistan 42

43 Draft FOURTH ANNUAL MEETING OF THE INTERGOVERNMENTAL COMMISSION TRACECA Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Баку / Азербайджанская Pеспублика, апреля 2005 г. Technical Annex on Multimodal Transport to the Basic Agreement Article 1 General Provisions This Technical Annex regulates relations between transport entities, multimodal transport operators, consignors and consignees, as well as other physical and legal entities, acting on behalf of consignors, carrying goods in multimodal services, with the use of rail, sea, river, road transport and ferry connections. The Technical Annex defines rights, obligations and responsibilities of each participant of transport. The provisions of the Technical Annex shall not affect the application of any international convention on multimodal transport and segmented transport, and nothing in this Technical Annex shall affect the right of the consignor to choose between multimodal transport and segmented transport. Article 2 Definitions This Technical Annex contains the following definitions: "Multimodal transport" means transport of goods, carried out by 2 or more transport modes; "Direct multimodal transport" means transport of goods, carried out by 2 or more transport modes, on the basis of the common transport document, applicable for the whole journey, which is using one loading unit; "Multimodal transport operator" means any person, who concludes a multimodal transport contract and assumes the whole responsibility for the performance thereof as a carrier or a transport operator; "Multimodal transport contract" means the Contract between Multimodal Transport Operator or other carrier with the consignor, on transport of goods by two or more transport modes; Multimodal terminal/node transport hubs, including railway stations, open for transport operations, sea and river ports (hereafter ports), road terminals, cargo handling yards, and other transport-storehouse terminals; Multimodal transport document means a document which evidences a multimodal transport contract, the taking in charge of the goods by the multimodal transport operator, and an undertaking by him to deliver the goods in accordance with the terms of that contract. Special drawing right (SDR) means the unit of account as defined by the International Monetary Fund Article 3 Purposes 1. Purposes of this Technical Annex are to ensure high quality services in multimodal transport, to design similar requirements to multimodal transport forwarders and operators by implementing provisions of multimodal transport contract, and to improve economic efficiency in the transport of goods. 2. Multimodal transport is regulated by the authorities in charge for transport in the Parties and other executive bodies within their jurisdiction. In accordance with international agreements, this Technical Annex and other laws and regulations in the Parties, executive transport authorities are considered to be in charge for the issue of rules of multimodal transport of goods by rail, river, sea, road transport and ferry connection, statements, instructions and other documents within their jurisdiction, containing rules of law and regulating relations in multimodal transport, which are mandatory for all legal and physical persons. 43

44 Article 4 Organization of Multimodal Transport of Goods 1. The multimodal transport procedure is regulated by the relevant codes, charters and rules, existing in the Parties for each transport mode. Multimodal transport includes: a) Railway stations, available for commercial operations; b) Sea and river ports (hereafter referred as ports ); c) Truck terminals and loading bays Ports, truck terminals and loading bays shall become parts of a direct multimodal connection, from the time of sending a written message by cable or else to the relevant executive body, with further publishing of listings of such ports, truck terminals and loading bays in the guides with transport rules and tariffs of executive bodies in the Parties, applicable for the relevant transport mode. 2. During the multimodal transport of goods, loading operations shall be carried out by: a) Ports, when loading goods from sea and river vessels and ports warehouses to wagons or motor-vehicles and ports, when loading goods from wagons or motor-vehicles to sea and river vessels and ports warehouses; b) Railways, when loading goods from wagons and railway stations warehouses to motor-vehicles and from motor-vehicles to wagons and railway stations warehouses; с) railways, ports or transport operators, in the ports, where cargo is loaded/unloaded, by wagons or containers loaded on the wagons, on/from the ferries specialized on such kinds of transport, if the shift of cargo is required. 3. Goods and transport vehicles with goods, delivered to transport hubs after the announced deadline for goods receipt, shall be accepted by ports from railways and road carriers without any difficulty. Goods and transport vehicles with goods, delivered to transport hubs after the announced deadline for goods receipt, can be handed over to ports for storage, with their prior contract. In case that port rejects to store goods, railways and road carriers shall contact a consignor to agree further activities. These situations increase the time of delivery. 4. Handing over of goods in sealed wagons or containers shall be carried out in transport hubs with immediate control of seals for conformity with transport documents. Goods in multimodal transport, shall be weighed when loading goods from one transport mode to another one in transport centers, upon request from accepting party (on track scales when handed over to railway and on trade scales - when handed over to road transport). In case that the loading and unloading Party lacks scales, handing over shall be made in accordance with the goods weight, indicated in the transport document (invoice, bill of lading). Packed and piece freights, accepted for transporting in accordance with the existing standard or by weight, fixed by the consignor in each loading place, and delivered to a reloading point in a good condition, shall be loaded from one transport mode to another without weighting, in accordance with the number of packs, with further delivery to the consignee in the point of destination. In case of shortage or damage, handing over of goods shall be made in accordance with the weight and the actual statement with the drawing up a formal act of a standard form. When handing over goods in containers, trailers, rail tankers and cars and other sealed transportation vehicles, the accepting party shall check the conformity with the documents and the condition of the transportation vehicles and seals. Provision of containers and their usage conditions for multimodal transport will be regulated by agreements settled between transport entities of each transport mode. 5. Operation of different transport entities in the interchange nodes shall be regulated by Interchanging Agreement on a 5-year term. Elaboration and signatory of such agreements shall be regulated by the rules applied to multimodal transport. In cases of any changes for technical facilities such as interchange nodes operation, contracts or treaties can be fully or partially revised before the expiry date, at the suggestion of either Party. Any disputes arising from the execution of the Interchanging Agreements shall be resolved in accordance with existing procedure, under the legislation of the Parties, at the place where grounds for a dispute occurred. 6. Period of time for the transport of goods in multimodal journey is defined by summing the periods of transport by each mode, based on the rules applied for each transport mode. In case of deviation from the total period of transportation in multimodal communication, the party at fault shall be liable for any delay in delivery of goods. 7. Goods reloading standards and regulation procedure are defined in accordance with the rules applied to multimodal transport. 44

45 Article 5 Documentation of the Multimodal Transport Operation When the goods are taken in charge by the multimodal transport operator, he shall issue a multimodal transport document, which at the option of the consignor, shall be in either negotiable or nonnegotiable form. The multimodal transport document is the document applicable for the entire transportation route. The international railway bill CIM or SMGS and the bill of lading applied on the sea route, which is completed in accordance with information contained in the railway bills, is the basis for direct multimodal transportation of goods. The multimodal transport document shall be signed by the multimodal transport operator or by a person having authority from him. The signature on the multimodal transport document may be in handwriting, printed in facsimile, perforated, stamped, in symbols, or made by any other mechanical or electronic means, if no inconsistent with the law of the country where the multimodal transport document is issued. Where a multimodal transport document is issued in negotiable form: a) It shall be made out to order or to bearer; b) If made out to order it shall be transferable by endorsement; c) If made out to bearer it shall be transferable without endorsement; d) If issued in a set of more than one original it shall indicate the number of originals in the set; e) If any copies are issued each copy shall be marked "non-negotiable copy" Delivery of the goods may be demanded from the multimodal transport operator or a person acting on his behalf only against surrender of the negotiable multimodal transport document duly endorsed where necessary. The multimodal transport operator shall be discharged from his obligation to deliver the goods if, where a negotiable multimodal transport document has been issued in a set of more than one original, he or a person acting on his behalf has in good faith delivered the goods against surrender of one of such originals. Where a multimodal transport document is issued in non-negotiable form it shall indicate a named consignee. The multimodal transport operator shall be discharged from his obligation to deliver the goods if he makes delivery thereof to the consignee named in such non-negotiable multimodal transport document or to such other person as he may be duly instructed, as a rule, in writing. The multimodal transport document shall contain the following particulars: a) The general nature of the goods, the leading marks necessary for identification of the goods, an express statement, if applicable, as to the dangerous character of the goods, the number of packages or pieces, and the gross weight of the goods or their quantity otherwise expressed, all such particulars as furnished by the consignor; b) The apparent condition of the goods; c) The name and principal place of business of the multimodal transport operator; d) The name of the consignor; e) The consignee, if named by the consignor; f) The place and date of taking in charge of the goods by the multimodal transport operator; g) The place of delivery of the goods; h) The date or the period of delivery of the goods at the place of delivery, if expressly agreed upon between the parties; i) A statement indicating whether the multimodal transport document is negotiable or nonnegotiable; j) The place and date of issue of the multimodal transport document; k) The signature of the multimodal transport operator or of a person having authority from him; l) The freight for each mode of transport, if expressly agreed between the parties, or the freight including its currency, to the extent payable by the consignee or other indication that freight is payable by him; m) The intended journey route, modes of transport and places of transshipment, if known at the time of issuance of the multimodal transport document; n) The statement referred to in paragraph 3 of article 28; o) Any other particulars which the parties may agree to insert in the multimodal transport document, if not inconsistent with the law of the country where the multimodal transport document is issued. 45

46 Article 6 Rights and responsibilities of Multimodal Transport Operator 1. A multimodal transport operator has no right to refuse transport of goods to any legal or physical entity. Refusal from a multimodal transport operator can be justified solely in cases, stated by the legislation, existing within the Party. 2. Multimodal Transport Operator has to choose the best mode and route of transportation, unless otherwise stated in the Multimodal Transport Contract. 3. Goods should be transported by the multimodal operator within a defined standard period, unless otherwise stated in the Multimodal Transport Contract. 4. In case where the transportation of goods stands to be impossible due to existing circumstances, multimodal operator should follow instructions from the goods owner (consignor). All instructions should be construed as changes in Multimodal Transport Contract with further expenses attributing to the goods owner (consignor). In case, where due to circumstances, goods had to be sold, all revenue, excluding expenses, related to transport and selling operations, shall be attributed to the goods owner (consignor). In case where circumstances preventing from the goods from transportation were caused by the fault of multimodal operator s fault, all losses related to non-delivery or delay in delivery, shall be reimbursed by the multimodal transport operator. 5. A multimodal transport operator has a right to retain and dispose of goods to ensure receiving of charges and other transportation payments, unless otherwise stated in Contract. 6. Insurance of the multimodal transport operator against any possible damage from the transportation process or third parties shall be compulsory. The subject of insurance can be related to the multimodal transport operator s material interests, as far as it is obliged to reimburse loses, caused by its operation. Article 7 Rights and responsibilities of consignor 1. The goods owner (consignor) has a right to claim for compensation, equal to the value of the goods lost when the goods can not be delivered within 30 days after the specified date. All losses related to delays in goods delivery, shall be reimbursed in accordance with general rules, applicable for each transport mode, unless otherwise stated by the contract. 2. The goods owner (consignor) may instruct to change the route, destination point, consignee, suspend the transportation process or make other important changes in the original multimodal transport contract. Further expenses born by the multimodal operator or carrier, resulting from any changes, shall be reimbursed by the goods owner (consignor). All instructions from the goods owner (consignor) regarding changes in the multimodal transport contract shall be made within reasonable time. 3. The consignor must ensure the goods are in good condition, for further transporting by the multimodal transport operator or carrier (containers, packaging, marking, etc.). The Consignor must mark dangerous goods in accordance with existing regulations. When dangerous goods are designed for transportation, the consignor shall inform the multimodal transport operator or carriers, and if necessary, about precautionary measures to be taken. Article 8 Responsibility of the multimodal transport operator 1. The multimodal transport operator shall be liable as consignor against consignee for safety of goods and luggage, accepted for transportation in multimodal communication, under the relevant transport codes and statutes. In case of any losses, defects or damage, goods are handed over with regards to its weight and actual condition. In cases of low-quality transport services, the party, which is handing over the goods, shall draw up a commercial act. In cases of any loss, defects or damage of goods or luggage is referred to railways, shipping companies, ports, road transport entities or road carriers, they bear the resulted responsibility. 2. In case of failure to reload goods or transport facilities with goods in multimodal system, multimodal transport operator shall be liable in accordance with existing legislation for the given transport mode. Multimodal transport operator is considered to be free from property accountability in the following cases: 46

47 a) force majeure situations, preventing goods from reloading and making loading and unloading operation impossible, emergency cases and accidents in transport entities; b) termination or constraints in the usual goods transportation process; 3. The multimodal transport operator shall be liable for goods loss, damage or transportation delays, if unable to prove all necessary measures were taken to avoid such kind of situations. The multimodal transport operator will be liable for goods loss, damage or transportation delays staring from accepting goods for transportation up to their delivery to the authorized representative. In case of invalid data in the multimodal transport document, multimodal transport operator shall be liable for any losses and expenses incurred by the third party as a result of its actions. 4. In cases where full or partial loss or damage of goods occurred during the transportation process, the existing legislation provides for a higher level of responsibility, rather than foreseen in a Multimodal Transport Contract. The scope of multimodal transport operator s responsibility has to be defined in accordance with the existing legislation. 5. When the multimodal transport operator is liable for loss resulting from loss of or damage to the goods according to the present article, his liability shall be limited to an amount not exceeding 920 units of account per package or other shipping unit or 2.75 units of account per kilogram of gross weight of the goods lost or damaged, whichever is the higher. In any case, the aggregate liability of the multimodal transport operator shall not exceed the cost of goods taken by him in charge. Article 9 Responsibility of Consignor 1. The consignor shall be liable for damage caused to the multimodal transport operator, provided that it was done intentionally or imprudently. In cases of transporting dangerous goods, the consignor shall inform the multimodal transport operator. Failure to do this, will lead the consignor liable to the multimodal transport operator for any possible loss, resulting from transporting such goods. In this case, the goods if necessary can be unloaded, disposed of or neutralized at any moment, with prior notification to the consignor, are without any compensation. The consignor shall be liable for losses of multimodal transport operator resulting from consignor s faults (imperfect or defective packaging, improper information on goods, wrong address or marking, etc.). The multimodal transport operator shall have to prove such faults or mistakes. 2. The consignor shall be materially liable under the transport legislation in the Parties, for wrong or missing information on goods, taken in charge by the multimodal transport operator or failure to do this at all, as well as for possible effects from wrong data in the transport document. Any losses at the consignor s fault, resulting from delay of transport facilities (tank cars, vessels, trucks) at reloading bays, shall have to be compensated by the consignor, in accordance with existing transport legislation. Article 10 Claims and Disputes 1. The limitations of any claims, related to multimodal transport operations, shall be 2 (two) years. In cases where the written notification with all details of the claim, is not submitted within 6 (six) months after the goods delivery or the goods are not delivered after the specified date, the limitation of actions shall be defined as 6 months. The limitation period commences the following day, after delivery of goods or a part of goods by multimodal transport operator. In cases that the goods are not delivered it commences on the day following the last specified date for delivery of the goods. 2. Parties may stipulate by the relevant Contract, approved in written form, that any dispute, related to multimodal transport operation, is the subject to arbitration. 3. The arbitration proceedings shall, at the option of the claimant, be instituted at one of the following places: a) A place in a State within whose territory is situated: - the principal place of business of the defendant or, in the absence thereof, the habitual residence of the defendant; or - the place where the multimodal transport contract was made, provided that the defendant has there a place of business, branch or agency through which the contract was made; or - the place of taking the goods in charge for international multimodal transport or the place of delivery; or b) Any other place designated for that purpose in the arbitration clause or agreement. 47

48 4. the right for bringing a suit or claims against the multimodal transport operator is referred to consignor or any other authorized person, consignee, indicated in the multimodal transport contract, insurer, who has obtained a subrogation right. The liability of the multimodal transport operator shall be limited to the actual value of freight, defined in the consignor s bill or its cost declared in the railway bill, bill of lading or invoice. The loss of freight shall be proved by the commercial act, drawn up in accordance with the rules applied under the acting law of international transport of every transport mode. All claims shall be made in written form. Claims for losses, shortages or damage of goods, shall be submitted along with originals or certified copies, in accordance with existing procedure, including confirmations of quality and price of transported goods. 5. Claims to the multimodal transport operator shall be submitted within 5 (five) months after the claiming right. This period shall apply to: a) compensation of losses, damage or shortage of goods the day following the date specified for goods delivery; b) deviations from the time of execution of the multimodal transport operator the day following the expiry date of contract, unless otherwise agreed by the Parties; c) violation of other obligations, stipulated in the multimodal transport operator after the day, when the Parties, stipulated in p.3 Article 9 of this Technical Annex discovered or should have discovered violation of their subjective rights or any other interests, secured by this Technical Annex. The multimodal transport operator is obliged to consider the claim within a 30-day period after it has been submitted, and inform the claiming party of allowing or dismissal of the claim. The multimodal transport operator shall be entitled to consider the claim after the deadline, stipulated n this Article, should the reason for missing the deadline is proved to be reasonable. Article 11 Final Provisions 1. All disputes related to the multimodal transport operations shall be settled by means of negotiations, in the judicial court or court of arbitration in the Parties, in accordance with their competences. 2. In judicial proceedings relating to international multimodal transport under this Technical Annex, the plaintiff, at his option, may institute an action in a court which, according to the law of the State where the court is situated, is competent and within the jurisdiction of which is situated one of the following places: a) The principal place of business or, in the absence thereof, the habitual residence of the defendant; or b) The place where the multimodal transport contract was made, provided that the defendant has there a place of business, branch or agency through which the contract was made; or c) The place of taking the goods in charge for international multimodal transport or the place of delivery; or d) Any other place designated for that purpose in the multimodal transport operator and evidenced in the multimodal transport document. 3. No judicial proceedings relating to international multimodal transport under this Technical Annex may be instituted in a place not specified in paragraph 1 of this article. The provisions of this article do not constitute an obstacle to the jurisdiction of the Parties for provisional or protective measures. 4. Notwithstanding the preceding provisions of this article, an agreement made by the parties after a claim has arisen, which designates the place where the plaintiff may institute an action, shall be effective. 5. Where an action has been instituted in accordance with the provisions of this article or where judgment in such an action has been delivered, no new action shall be instituted between the same parties on the same grounds unless the judgment in the first action is not enforceable in the country in which the new proceedings are instituted; For the purposes of this article neither the institution of measures to obtain enforcement of a judgment nor the removal of an action to a different court within the same country shall be considered as the starting of a new action. 48

49 Draft FOURTH ANNUAL MEETING OF THE INTERGOVERNMENTAL COMMISSION TRACECA Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Баку / Азербайджанская республика, апреля 2005 г. Technical Annex on TRACECA Investment to the Basic Agreement Article 1 General Provisions 1. The provisions of this Technical Annex shall regulate the TRACECA Investment a) bilateral, multilateral between the Parties; b) in transit, through the territories of the Parties 2. The present Technical Annex sets out the necessary framework in terms of procedures, rights and obligations of the Parties for the implementation of its scope of application, as well as for the protection of any third parties operating within the institutional framework established the Basic Agreement and its Protocols and Technical Annexes. Titles in the present Technical Annex are intended solely for ease of reference and should not be construed as affecting the interpretation of the provisions of this Technical Annex. Article 2 Definitions and titles For the purpose of the present Technical Annex: 1. Parties means the Parties to the Basic Agreement on whose territory a TRACECA Route is established pursuant to the present Technical Annex; 2. Specific Protocol or Specific Protocols means any interstate agreement or agreements concluded by two or more Parties in the framework and in implementation of this Technical Annex in compliance with the principles and provisions of the Basic Agreement and the procedures set out in the present Technical Annex to be annexed to the Basic Agreement; 3. Construction means the building of new infrastructure facilities concerning road transport, railway transport, water transport, air transport and pipelines as well as any new parts of such infrastructure facilities; 4. TRACECA Route means an integrated Interstate Transportation System crossing the territories of more than one State; it can be defined: Either by specific transportation means and facilities constituting the said Interstate Transportation System; Specific modes of transportation envisaged for the establishment of the said Interstate Transportation System; Specific goods transported through the said Interstate Transportation System. A TRACECA Route shall be established each time by means of an interstate agreement between at least two Parties signatories of the Basic Agreement and the present Technical Annex. The incorporation of such interstate agreements into the national legislation of the Participating Parties and their implementation shall be pursued in accordance with the national legislation of those Parties; 5. TRACECA Investment means any project relating to: The rehabilitation of existing infrastructure facilities, including the revitalization and/or reconstruction and/or refurbishment and/or expansion and/or modification of any existing infrastructure facility or any existing part of such a facility. The construction of new infrastructure facilities or any new part of an existing infrastructure facility. The operation of infrastructure facilities as resulting from either rehabilitation or construction activities. Any preliminary stages in terms of planning in view of activities, as set out above. 49

50 Any investment on the territories of the Parties that, due to its contribution to the economic development of the Parties and its contribution to the increase of the movement of goods across a concrete TRACECA Route as described in Article 2 of the present Technical Annex; 6. TRACECA Investment Committee, described in Article 12 of the present Technical Annex means the committee consisting of authorized representatives of all the Participating Parties to a TRACECA Route, empowered to monitor in the name and on behalf of such Parties, the implementation of their decision to establish one or more TRACECA Routes and to make recommendations on the coordination of all the steps measures and common actions to be taken by the government of each Party within its territory necessary to ensure the security and protection of the infrastructure facilities of the transport system(s) established pursuant to this Technical Annex, against events such as natural disasters, earthquakes, radioactive or chemical contamination, civil riots, acts of terrorism or sabotage, criminal damage and other events of similar nature; 7. TRACECA Economic Interest Grouping, hereinafter TEIG, means an association of legal entities, based in at least two Parties to the Basic Agreement. The TEIG has a legal personality itself and aims at the facilitation of the financial and commercial activities of its members; 8. Guarantee Trust Fund means a mechanism covering any non-calculated risks emerging along a TRACECA Route, especially those risks covered under the Convention Establishing the Multilateral Investment Guarantee Agency, adopted at Seoul at 11 October 1985, hereinafter MIGA Convention ; 9. Integrated form of project implementation means form of cooperation selected by the Parties for the establishment of an Interstate Transportation System (TRACECA Route) which entrusts a single legal entity or a group of legal entities, with two or more separate functions, as described in Article 10 of the present Technical Annex or any other form of integration; 10. Maintenance means the technical activities necessary to preserve the infrastructure facilities of a TRACECA Route or any part of facility of an Interstate Transportation System in good functional order, for the purpose for which such a system is intended, in accordance with applicable technical, safety and environmental standards; 11. Maintenance Entity means a legal entity or a group of legal entities established or selected pursuant to the present Technical Annex in order to undertake the function of Maintenance of an Interstate Transportation System (TRACECA Route); 12 Operation means the activities which are necessary for the continuous uninterrupted, proper and efficient functioning of the TRACECA Route (s) in accordance with applicable rules and regulations, as well as international Conventions and Treaties in force; 13 Operation entity means a legal entity or a group of legal entities established or selected pursuant to the present Technical Annex in order to undertake the operation of a TRACECA Route; 14. Authorized Entities concerned referred to in Articles 6 and 9 of the present Technical Annex, means the Authorized Competent Entities described in Article 17 of the present Technical Annex; 15. Practices or Usages, referred to in the Preamble of the Protocol to the Basic Agreement which introduces the present Technical Annex and in Article 6 of the present Technical Annex, means the forms and manners of conducting specific technical, commercial and financial activities within a specific industry or market established through common use and applied by professionals operating within the same industry or market; 16. Project means the planning for and undertaking to carry out a specific activity or activities within the framework of a TRACECA Route established under the present Technical Annex; 17. Project Management is the mobilization of a multi-disciplinary team required for the implementation of the overall Project of the Rehabilitation or Construction of a TRACECA Route, or any infrastructure facility or part of it, overseeing and coordinating activities related to engineering, procurement, technical monitoring and supervision, Construction management and commissioning of such a Project within the applicable objective of time schedule, quality and costs; 18. Project Management Entity is the legal entity or a group of legal entities established or selected pursuant to the present Technical Annex in order to undertake the function of Project Management; 19. The Project Management Entity and the Operation Entity might be two different entities, acting in two different phases of the Project implementation and Operation, according to the provisions of the present Technical Annex, unless the dual function of Project Management (before the completion date) and Project Operation (after the completion date) is entrusted to a single legal entity or a group of legal entities under the terms clause 2of Article 9 of the present Technical Annex; 20. Rehabilitation means the revitalization, reconstruction, refurbishment, expansion or modification of any Interstate Transportation System or Transport Infrastructure facility or any existing part of such transport infrastructure facility. 50

51 Article 3 General Commitment The Parties will cooperate, within the framework of the Basic Agreement, its Protocols and Technical Annexes and the present Technical Annex, in order to establish, under mutually acceptable terms and conditions, one or more TRACECA Route (s), by means of the Rehabilitation of the existing infrastructure facilities, the Construction, where appropriate, of new infrastructure facilities, the purchase of various transportation means and the Operation and Maintenance of these transportation facilities, under commonly accepted international practices and rules. Article 4 Scope of application 1. For the purposes of Article 3 of the present Technical Annex, the Parties agreed to undertake or to pursue bilateral and/or multilateral negotiations with other Parties in order to determine by Specific Protocol(s) which existing transportation infrastructure facilities will be part of a TRACECA Route, which transportation means, to which goods, products and/or passengers the TRACECA Route rules will apply, when crossing their states, as well as which infrastructure facilities and means they wish to be used as parts of one or more TRACECA Route to be established, maintained and operated pursuant to Basic Agreement, its Protocol and Technical Annexes and the present Technical Annex and which new infrastructure facilities they accept to be constructed, operated and maintained on their territory as parts of the aforementioned TRACECA Route (s). 2. Without prejudice to the establishment of interconnections between two or more TRACECA Routes established pursuant the present Technical Annex, such TRACECA Routes could be considered as separate Projects, to be designed, financed, rehabilitated, constructed, operated and maintained in accordance with different technical, commercial, financial and environmental considerations. Each Party may agree with (an) other Party(ies) to establish more than one TRACECA Route. 3. For the purpose of assisting the increase of the movement of goods, products and/or passengers, the Parties, participants in a TRACECA Route, agree to undertake the obligation to protect the TRACECA investment connected with a concrete TRACECA Route within their internal legal order, even if the TRACECA investment is placed on the territory of another Party, participant in that TRACECA Route. This means that every party, participating in a TRACECA Route undertakes the obligation not to deteriorate the conditions of transportation of any investment, which is considered as a TRACECA investment, unless this deterioration is directly connected with the real increase of costs for the said transportation. Article 5 Interstate agreements for TRACECA Routes and TRACECA Investment provisions 1. Every interstate agreement creating a concrete TRACECA Route should include as a minimum the following (a part of the usual provision of any interstate agreement): Concrete description of the Route in terms of infrastructure facilities transportation means, goods or other specifications that could include. List of international conventions, treaties or agreements, under which agreement full enforceability exists brief description of TRACECA investments for the concrete TRACECA Route (infrastructure projects) and related TRACECA investments, for which the state and interstate performance Guarantee is in force monitoring system of the operability of the TRACECA Route and appointment of the TRACECA Investment Committee hat is responsible among other obligations for the Monitoring of the TRACECA Route. 2. Any interstate agreement could envisage the creation of a Guarantee Trust Fund, on the basis of a Specific Protocol, if deemed necessary. Article 6 Operation 1. Without prejudice to Article 10 of the present Technical Annex, clause 2 and taken into consideration the need to provide for rules ensuring efficient functioning of any TRACECA Route established pursuant to the Basic Agreement and the present Technical Annex, the Operation of such TRACECA Route, if agreed by the Participating Parties to that concrete TRACECA Route, may 51

52 be assigned to one Operation Entity, to be established or selected according to the principles, rules and procedures, which will be negotiated and agreed upon by the Participating Parties and, as appropriate, by the Authorized Entities concerned. 2. The Operation Entity could enter into an Operation Agreement with the Participating Parties and, as appropriate, with the Authorized Entities concerned, describing the principles and rules according to which the TRACECA Route established by these Parties shall be operated. 3. Without prejudice to Article 10 of the present Technical Annex and, unless otherwise expressly provided for in a Specific Protocol for the establishment of a TRACECA Route, one or more Operation Entity(s) may only provide transport services to transporters, forwarders and generally clients of the transportation means and transportation infrastructure facilities under specific transport agreements, following international standards and Usages of the transport industry. 4. The Operation Entity could have the form of a TEIG. Article 7 Rehabilitation and Construction 1. Unless otherwise expressly provided for in the present Technical Annex, each Participating Party in implementing the decision of two or more Participating Parties relating to the establishment of one or more TRACECA Routes, maintains the right to rehabilitate the existing transportation infrastructure facilities, that are part of the TRACECA Route, which is crossing its state, pursuant to the national legislation, rules and regulations in force in said Party. 2. The provisions of clause 1 of the present Article do not preclude the right of a Party to enter into a different arrangement with other Participating Parties, in view of rehabilitating and constructing the transportation infrastructure facilities of a TRACECA Route which is crossing their states. To this effect, two or more Parties may decide to assign the Design, Rehabilitation and Construction of the works lying within their territories to a legal entity or to group of legal entities established or selected as the Participating Parties may jointly decide. 3. In order to ensure the technical consistency and operational efficiency of one or more transportation infrastructure facilities that are part of a TRACECA Route to be established between two or more Participating Parties, such Participating Parties agree to apply, when contracting out, as per Clause 1 and 2 of the present Article, the Rehabilitation and Construction of the national parts of one or more TRACECA Routes, commonly agreed technical specifications which are internationally recognized by the transport industry. 4. The Rehabilitation and/or Construction Entity could have the form of TEIG. Article 8 Maintenance 1. The provisions of Article 7 of the present Technical Annex similarly apply to the Maintenance of the rehabilitated or newly constructed transportation infrastructure facilities which are part of a TRACECA Route established pursuant to the present Technical Annex. 2. Subject to the provision of Article 6, clause 1 of the present Technical Annex, when an Operation Entity operates that transportation infrastructure facilities which are part of a TRACECA Route established pursuant to the present Technical Annex and should the Maintenance of such facilities be assigned to a legal entity or a group of legal entities, other than the Operation Entity as described in Article 6 of the present Technical Annex, the legal entity, or the group of legal entities, responsible for the Maintenance of such transportation infrastructure facilities shall operate under the control and supervision of the Operation Entity, as the Maintenance Agreement, to be made by virtue of this Article, and the Operation Agreement, provided for in Article 6 clause 2 of the present Technical Annex, shall expressly provides. 3. The Maintenance Entity could have the form of TEIG. Article 9 Project Management 1. In implementing their decision to establish a TRACECA Route, pursuant to the present Technical Annex the Participating Parties and as appropriate, the Authorized Entities concerned, if they so agree, may decide to assign the overall responsibility of the feasibility study, design and supervision of a Rehabilitation and Construction of such a transportation infrastructure facility to a Project Management Entity to be established or selected by the Participating Parties and, as 52

53 appropriate, by the Authorized Entities concerned, according to mutually acceptable principles, rules and procedures which will be negotiated and agreed upon by the Participating Parties and, as appropriate, by the Authorized Entities concerned. 2. Without prejudice to the provisions of Article 10, clause 2 of the present Technical Annex nothing precludes the Participating Parties and, as appropriate, the Authorized Entities concerned, from assigning the function of the Project Management Entity to the Operation Entity described in Article 4 clause 1 of the present Technical Annex. 3. The Project Management Entity could have the form of TEIG. Article 10 Integrated Forms of Project Implementation 1. Taking into consideration the specific technical, commercial and financial requirements for the establishment of a TRACECA Route pursuant to the present Technical Annex, the Participating Parties might agree to assign two or more functions among those contemplated separately in Articles 6 to 9 of the present Technical Annex, to a single legal entity, or a group of legal entities, to be established or selected by the participating Parties as more specifically described in: a) Article 7, clause 2, in combination with Article 8 clause 1, for the functions of Rehabilitation / Construction and Maintenance. b) Article 6, clause 1, in combination with Article 8 clause 2, for the functions of Maintenance and Operation. c) Article 6, clause 1, in combination with Article 9 Clause 2, for the functions of Project management and operation. d) Article 9, Clause 2, in combination with Article 8 Clause 2, for the functions of Project Management, Operation and Maintenance. 2. The Parties may adopt any other integrated form of Project Implementation, included in, but not limited to the integrated Operation of the TRACECA Route (s) and its transportation means and infrastructure facilities, in order to implement their own decision to establish one or more TRACECA Route (s) pursuant to the present Technical Annex. 3. The integrated form of Project Implementation could have the form of a TEIG. Article 11 TEIG 1. Members of a TEIG can be state or private companies established under the national legislation of states, parties to the Basic Agreement. At least two of the TEIG members shall have their central management or principal activities on the territory of their respective State, Parties to the Basic Agreement. 2. The management of a TEIG may be exercised by one or more persons. A TEIG cannot manage nor control the individual activities of its members nor act as a holding company. 3. The assets of a TEIG, if any, are contributed by its members. A TEIG itself may not be a profitmaking organization. Any possible profits of that TEIG are deemed to be profits of its members and are distributed to its members according to their ratio of participation. 4. The members of a TEIG contribute to the coverage of expenses of the said TEIG according to their participation, but are jointly and wholly liable as regards their obligations to the said TEIG. 5. A TEIG has a relatively loose structure, and grants a legal personality and a minimum structure to a de facto co-operation of its members. The exact institutional structure of a TEIG is decided in the form of a Technical Annex on the basis of a specific agreement between the Parties to the Basic Agreement. Article 12 Issues relating to the exclusive jurisdiction to the Parties 1. In implementing the decision to establish one or more TRACECA Route (s) pursuant to the present Technical Annex, the Participating Parties shall establish by separate specific Protocol (interstate agreement) the rules governing issues relating to the application by each Participating Party of its exclusive jurisdiction over its territory, as well as over the natural and legal persons operating within such territory, concerning issues including but not limited to social security and labor legislation, Construction regulations, licensing procedures, safety and health regulations, fiscal and customs issues and environmental protection legislation, relating to the Design, Financing, Rehabilitation, Construction, Maintenance and Operation of the transportation infrastructure facilities, which are placed on their own territory, of a TRACECA Route established pursuant to the present Technical Annex. 53

54 2. Unless otherwise expressly provided for in the Basic Agreement and the present Technical Annex, no party will modify its national legislation to the extend that such legislation will impair the conditions of Design, Financing, Rehabilitation, Construction, Maintenance and operation of a TRACECA Route established pursuant to the present Technical Annex, after the present Technical Annex and an Interstate Agreement establishing a TRACECA Route enters into force. In case of inconsistency between the provisions of the present Technical Annex establishing a TRACECA Route and the national legislation of the Participating Parties, the provisions of this Technical Annex and the interstate agreement shall prevail. 3. The Parties shall cooperate in order to establish by each Specific Protocol (interstate agreement) establishing a TRACECA Route, an authorized TRACECA Investment Committee (Subcommittee (s) of the IGC) which will be empowered to monitor, in the name and on behalf of Participating Parties the implementation of their decision to establish that concrete TRACECA Route established pursuant to the present Technical Annex. 4. The Parties shall cooperate in order to create, on the basis of the same Specific Protocol (interstate agreement) establishing a concrete TRACECA Route, the TRACECA Investment Committee which will make recommendations regarding the coordination of all the steps, measures and common actions to be taken by the Government of each Participating Parties within its territory, necessary to ensure the security and the protection of the transportation infrastructure facilities of this concrete TRACECA Route, against events such as natural disasters, earthquakes, radioactive and chemical contamination, civil riots, acts of terrorism or sabotage, criminal damage and other events of similar nature. Such events, as well as the functions and powers of the TRACECA Investment Committee, shall be determined by the Participating Parties, on a mutually acceptable basis for each concrete TRACECA Route established pursuant to the present Technical Annex. 5. The Specific Protocol(s) (interstate agreements) creating a concrete TRACECA Route(s) pursuant to the present Technical Annex, shall constitute an integral part of this Technical Annex and shall be in force only for the Parties that have signed these Specific Protocol(s)(interstate agreement). Article 13 Protection of the Environment In implementing the present Technical Annex, the Parties agree to develop tighter intergovernmental cooperation with a view to creating common institution(s) acting in accordance with international rules, such as those enunciated in Kyoto Protocol to the United nations Framework Convention on Climate Change, signed in Kyoto, on 11 th of December 1997, taking into account local environmental conditions, and to implement common policies safeguarding the environment against any harmful effect caused by the Rehabilitation, Construction or Operation of transportation means or infrastructure facilities of a TRACECA Route established to pursuant to the present Technical Annex. Article 14 Implementation in the National Legal Orders 1. The Parties shall take all the appropriate measures in order to incorporate and implement the provisions of the present Technical Annex in their National Legal Orders. 2. Where the present Technical Annex or the Basic Agreement provides for or implies the conclusion of a separate Protocol or Technical Annexes, to the Basic Agreement such Protocol (s) or Technical Annexes shall be negotiated and agreed upon by the Participating Parties, taking into consideration the specific requirements of any concrete TRACECA Route to be established pursuant to this Technical Annex. The incorporation and implementation of such Protocol(s) in the Internal Legal Orders of the Participating Parties shall be pursued in accordance with the relevant constitutional and legislative provisions of said Parties. 3. A Party may not involve the provisions of its Internal Legal Order as justification for its failure to perform its obligations under the Basic Agreement, the present Technical Annex and the Specific Protocol(s) (interstate agreement) creating concrete TRACECA Route(s). Article 15 State and Interstate Performance Guarantee Each Party guarantees the proper and timely execution of its obligations arising out of the Basic Agreement its Technical Annexes, as well as the present Technical Annex and Specific Protocol(s) (interstate agreements) creating concrete TRACECA Routes vis-à-vis all the other Participating Parties in the Basic Agreement or the other Participating Parties to a Specific Protocol creating a TRACECA Route. Each Party provides the same guarantee to any third Party, Natural Person or Legal Entity entering to an 54

55 Agreement or Contract with this Party for the design, Rehabilitation, Construction, financing, Operation and Maintenance of Transportation Infrastructure Facilities and Operation of various transportation means or users of the above mentioned Infrastructure facilities and means that are part of a TRACECA Route established pursuant to the present Technical Annex. Article 16 Settlement of Disputes on Interstate Agreement for the creation of TRACECA Route Any disputes arising between the Parties relating to a concrete TRACECA Route and any dispute arising between a Party and a third party relating to the interpretation and implementation of the above mentioned agreements and/or any contract or agreement which is made between a Party and the said third party for the implementation of a TRACECA Route, or directly connected with its Operation, shall be settled in accordance with the rules provided for in that interstate agreement that creates the concrete TRACECA Route. Article 17 Authorized Competent Entities 1. Each Party shall designate and notify to the other Parties the authority, which will be responsible, according to its national legislation, for the implementation of the interstate agreement under the present Technical Annex. 2. The Parties accept and guarantee the obligations undertaken by these entities for the implementation of the present Technical Annex and the Specific Protocol(s) creating a concrete TRACECA Route(s) as their own obligations. 55

56 Draft FOURTH ANNUAL MEETING OF THE INTERGOVERNMENTAL COMMISSION TRACECA Baky / Republic of Azerbaijan, April 21-22, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Баку / Азербайджанская республика, апреля 2005 г. Technical Annex to the Basic Multilateral Agreement on Freight Forwarding Operations Article 1 General Provisions 1. The Present Technical Annex determines the procedure of freight forwarding activity - the process of services and organization of transportation of goods by any mode of transport, and the processing of transport, customs and other documentation required for the realization of the transportation of goods (hereinafter called freight forwarding services). The conditions of the freight forwarding contract (hereinafter known as the contract), which are not stipulated by the present Technical Annex, are determined by the Parties of the contract (the freight forwarding agent and client) in accordance with existing domestic legislation of the MLA Parties. 2. The rules of present Technical Annex do not cover forwarding activities in the field of mail service. Article 2 Definitions Definitions used in the Technical Annex have the following meanings: a) freight forwarding activity a kind of the specialized activity on rendering the freight forwarding services, carried out by the freight forwarding agent under the transport expedition contract; b) freight forwarding services - means services of any kind relating to the carriage, consolidation, storage, handling, packing and distribution of the goods as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the Goods for official purposes, procuring insurance of the goods and collecting of procuring payment or documents relating to the goods; c) freight forwarding agent the legal or physical person rendering freight forwarding service in accordance with transport expedition contract; d) the transport agent the legal or physical person rendering freight forwarding service and working on behalf of the client on this basis of transport expedition contract; e) transport agency service the freight forwarding activity which is carried out by transport agents; f) client - the legal or physical person who independently or though his representative working on behalf of him concludes transport expeditions contract with the freight forwarding agent or transport agent; g) consignor - the legal or physical person on behalf of him or by his request the shipment is made; h) consignee - the legal or physical person on behalf of him or by his request the reception of cargo is made; i) cargo goods, materials, substances, products, or any other property of consignor, accepted by freight forwarding agent or his representative for delivery; j) carrier - the legal or physical person who undertakes to deliver the cargo entrusted to him to the destination and hand over it to consignee or to his representative; k) the transport document - the document certifying the transport contract, acceptance of cargo by freight forwarding agent, and also his obligations to deliver a cargo to the destination; l) vehicle special adaptation (device) for transportation of cargoes and passengers as they are defined by transport glossaries of Eurostate, and UN ECE; m) terminal a complex of non-production constructions intended for interaction of varios types of transport for delivery of cargoes (passengers), reloading and other operations on management of freight traffics; n) the freight forwarding enterprise the legal person registered which renders freight forwarding services. 56

57 Article 3 Rules of freight forwarding activity 1. The rules of freight forwarding activity shall be approved by the Governments of the MLA Parties. 2. The following are determined by the rules of freight forwarding activity: A List of freight forwarding documents (documentation confirming the conclusion of freight forwarding contract); A Quality requirement for the freight forwarding services provided; A set procedure for freight forwarding services. Clause 4 The rights of the freight forwarding agent and client 1. The freight forwarding agent (hereinafter called the agent) has the right to deviate from the instructions of the client for the interests of the client and himself. This deviation is allowed if the agent can not ask the client s preliminary consent for his action in accordance with contract, or the agent is not able to receive the client s consent for his inquiry within a day. In cases where the instructions of the client are inaccurate or incomplete or do not correspond to the contract conditions, and agent, in any circumstances, could not specify the instructions of the client, he proceeds to execute his service within the interest of the client. 2. If it is not stipulated differently in the contract, the agent has the right to choose or to change a mode and route of transport, and also types of consequence transport means for the interests of the client. In this case, in accordance with the contract, the agent is obliged immediately to notify the client on any changes made according to the present article. 3. In accordance with the conditions of the contract the agent has a right to keep a cargo in his possession until expenses incurred within the interest of the client have been reimbursed or until the client s guarantee to compensate his expenses. In this case the client will pay all other charges connected with the retention of cargo. In any cases stipulated by present article the client shall be responsible for any damage arising from the retention of cargo. 4. The agent has the right not to precede with his duties under contract until the client has presented all necessary documents, and information on the goods, the means of transportation and any other information necessary for performance of the agent s duties. Where incomplete information is presented the agent is obliged to request from the client any additional necessary data in accordance with the established procedure of the contract. 5. The agent has the right to check reliability of the necessary documentation, submitted by the client, and also information about the cargo, means of transportation and other information necessary for the performance of agent s duties in accordance the contract. 6. The client has the right: - to choose a route for the cargo and mode of transport; - to require the agent (if it is defined by the contract) to provide any information on the process of transporting the cargo; - to instruct the agent in accordance with the contract. Clause 5 Duties of the freight forwarding agent 1. The agent is obliged to provide his service in accordance with the contract. 2. In case there is no opportunity for a preliminary inquiry about deviation from the instructions of the client, or if an answer to such inquiry is not received by the agent within a day, the agent is obliged to notify the client on the deviations, as soon as possible, in the order determined by the contract. 3. The agent providing his services to the client s personal, family, or other needs, not connected with client s business activity, is obliged to provide, on the request of the client, information on the Legislation of MLA Parties on the consumer rights protection. 4. The freight forwarder takes the goods in his charge against issuance of a freight forwarding document to a client and also against presentation of the originals of the contracts, concluded by the freight forwarder, acting on the grounds of the letter of attorney issued by the client, on behalf of the client and in accordance with the freight forwarding services contract. 5. The agent does not have a right to claim on behalf of the client insurance contract of cargo, if it is not agreed by contract. 57

58 Article 6 Duties of the Client 1. The client is obliged to provide the agent with full, correct and reliable information on the character of the cargo, transport conditions, and all other information required for the performance of the agent s duties in accordance with the contract. The client should also provide all other documents required for customs, sanitary and any other kind of government control of cargo. 2. In accordance with contract procedure the client should pay the agent s remuneration and cover any other expenses incurred within the interest of the client. Article 7 General base of responsibility 1. For non performance or improper performance of duties under the contract and this Technical Annex the agent and client will be liable on the base and in the amount which are defined in accordance with international conventions applied in the MLA Parties and present Technical Annex. 2. In cases where the agent proves that the breach of responsibilities is caused by improper performance of forwarding agreement, the liability of the client who signed the forwarding agreement is defined on the base of the rules under which the relevant forwarder is liable for the agent. 3. During performance of the forwarding service, providing the international transportation of goods, accompanied by respective forwarding documents, the limit of agent s liability for non performance or improper performance of duties under the freight forwarding contract shall not exceed 666,67 units of account per package or per single transportation (666,67 units of account per package or per other unit of shipment) except the responsibilities of the agent stipulated in point 2, Clause 9 of present Technical Annex. For the purpose of the present Technical Annex during performance of forwarding services which are connected with international transportation of goods, the unit of account means the special drawing right (SDR) which is defined by the International Monetary Fund. The value of the currency of payments in special drawing rights (SDR) is calculated in accordance with the method of value determination used by the International Monetary Fund for the corresponding date of operation and transactions. Based on the currency value in SDR, the currency convertibility is applied at the rate of the court decision date or at the rate of another date which is defined by the Agreement of the Parties. 4. The rules of liability limitation under paragraph 3 of the present Article and paragraph 2 of Article 7 of this Technical Annex will not be applied if the agent proves that loss, non-delivery or damage of the cargo is not caused because of his intentional or careless act or negligence. 5. In case of single sided termination of the contract the client or agent will cover the losses of the other side, directly resulted from the termination of contract. Article 8 Basis and degree of responsibilities of the agent for lost, non-delivery or damage of cargo 1. The agent shall be responsible for compensation of real cost of lost, non-delivered or damaged cargo from its acceptance until its delivery to the consignee as indicated in the contract or to any authorized person. If the agent is not able to prove that loss, non-delivery or damage of the cargo is caused by conditions out of his control, then the amount of his compensation will be in the following amount: a) for the loss or non-delivery of cargo accepted for delivery with defined cost; compensation will equal the cost of the defined or missing part s cargo; b) for the loss or non-delivery of cargo accepted for delivery without defined cost, compensation will equalthe amount of real cost (documentary proved) of cargo or its missing part s; c) for the damage of cargo accepted for delivery with defined cost in the decreased amount of cost and in case of non-recovery of damaged cargo in the full amount of cost; d) for the damage of cargo accepted without defined cost in the decreased amount of (documentary proved) real cost of cargo and in case of non-recovery of cargo in amount of (documentary proved) real cost of cargo. 2. In an international freight forwarding service the responsibility of the agent for lost, non-delivered or damaged cargo, is defined by present Article, payment must not exceed two units of special payment for each kilogram of lost, non-delivered or damaged cargo if more compensation is not paid by third party who is responsible for the agent. 58

59 3. The freight forwarding contract may stipulate that along with compensation of the real cost of the cargo when lost, non-delivered or damaged, the agent should return all remunerations, which is not included in the cost of the cargo. 4. Besides compensation and repayment of remuneration to the client in the amount defined by the present article the agent shall pay the cost of lost profit arising from lost, non-delivered or damaged of cargo. 5. In an international freight forwarding service cost of lost profit is fully covered but not more than that amount, which is defined by the present Technical Annex. 6. The real cost of cargo (documentary proved) is determined based on cargo cost indicated in the agreement or seller s receipt. In the absence of these documents the cost is determined on the price of the same kind of goods at the place of delivery on the date of voluntary payment and if payment is not made voluntarily then on the date of the court decision. 7. The cargo is considered to be lost if it is not delivered within thirty days of the delivery date, defined by the freight forwarding contract. If delivery date is not defined in the contract then within a reasonable time necessary for the delivery of cargo counted from the acceptance date. Cargo, which has been already delivered but not handed over to the consignee or to any other authorized person indicated in the contract because of non-payment of remuneration, shall not be considered to be lost if the agent notifies the client on the performance of freight forwarding service as required by the contract. Article 9 Notification of lost, non-delivery and damage of cargo 1. During the handing over of cargo, if the consignee, as defined by contract, or any other authorized person fails to notify the agent in writing about the lost, non-delivered or damaged cargo and do not specify the problem, then it shall be considered that they received the cargo without any defect (damage) if it is not proved to be otherwise. 2. If lost, non-delivered or damaged cargo is not noted during acceptance of cargo then notification shall made not later then thirty calendar days from the acceptance date. The date of notification will be a date of its receipt by the agent. Article 10 Basis and limit of responsibilities of the agent for breach of contract execution date under the contract 1. The agent recovers the damages to the client caused by due date breach of the contract, if other way is not envisaged by given contract and the agent does not prove that the due date breach occurred because of Force Majeure or because of the client. 2. According to the freight forwarding contract, if the client is using agent services for personal, family, or other needs, non-connected with the business activities of the client, and there is a due date breach, the agent pays the client a forfeit for each day (24 hours. A partial day is counted as a full 24 hours day), or by hour (if the deadline is shown in hours). The daily forfeit is 3 percent, and not more than 80 percent of remuneration owed to the client. The client can also recover the loss caused by a due date breach by the freight forwarding contract if the agent does not prove that the due date breach occurred because of insuperability of the task or because of the client. Article 11 Basis and limit of responsibilities of the client for the agent 1. The client is liable for the damages caused to the agent by his default on non-provision of the information required by the present Technical Annex. In cases where the client s refusal to pay the expenses of the agent incurred during performance of his contract obligations have no grounds, then the client pays a penalty in the amount of 10 percent of the total agent s expenses including full amount of all expenses incurred. 2. The client is responsible for the late payment of agent s remuneration and expenses incurred within the interests of the client in the amount of 0.1 percent of the agent s remuneration and expenses for each delayed day, but not more than the full amount of remuneration and expenses incurred within the interests of the client. Article 12 Agreement on changes of responsibility limit of the agent 1. Higher responsibility of the agent in comparison with responsibility shown in the present Technical Annex or international agreements applied in the MLA Parties may agreed in the freight forwarding contract. 2. The agreement on elimination or decreasing of agent s liability shall not be allowed. 59

60 Article 13 Complaints and Claims against the agent 1. Before submission of claim under the contract it is required to submit a complaint to the agent except where the submission of claim against freight forwarding service is performed for personal, family or other needs non-connected with client s business activity. 2. The consignee, as defined by contract, the client or his authorized person and also insurer has a right to complain and claim compensation. 3. Claims are made in written form. The claim for lost, non-delivered or damaged cargo must be accompanied by documents proving the right to claim and the original or certified copies of other documents confirming the quantity and cost of cargo. 4. Claims to the agent must be made within six month from the date when the right to claim is raised. This date accounts for: compensation of loss, non-delivery or damage of cargo from the date when the cargo was supposed to be delivered; compensation for the breach of contract execution date which is calculated from the date after last contract execution date if it is not defined by the Parties; breach of other contract requirements from the date when the person indicated in paragraph 2 of present article knew or were supposed to know about these breaches. 5. The agent should review the client claim and should notify him in written on a claims settlement or rejection within thirty days from its acceptance date. In case of partial settlement or rejection of claim the agent should indicate in the notification his arguments for this decision. In this case all documents submitted with the claim will be returned to the client. 6. The agent has a right to accept any claims after the deadline of a submission, which is established by present article, if the claim deadline passed because of good reason. Article 14 Limitation of action For any claim under the freight forwarding contract the limitation of action is one year. This date is counted from the date when the right to claim begins. 60

61 Annex II Enclosure 6: PS Budget Presentation Financial Affairs of the Permanent Secretariat of the Intergovernmental Commission TRACECA General Statements It has to be distinguished between the decision about financial contributions and the procedures for the financial contributions. The latter is established within the (Draft) Agreement on Joint Financing of the PS of the IGC TRACECA to be annexed to the Basic Agreement. In order to fullfill the reporting obligations of the Permanent Secretariat towards its member states and other contributing parties, the PS will submit an Annual Report 2004 of the PS IGC TRACECA to the Intergovernmental Commission Meeting, beginning in 2004 with the first annual report as it was the first year with member states contributions. The contributions of the Member States are to be understood as payments for services rendered by the PS of the IGC TRACECA Major financial figures which will be included in the annual report will be given on the next pages based on the recommendations and decisions of the last NS Working Group Meeting in October TFIS Progress Report I February

62 2004 Income Statement of the PS IGC TRACECA No. Cost Categorie Amount in A Contributions of the Parties to the MLA B Contributions of the EU B1 Contributions of the EU via TRACECA Coordination Team Project B2 Contributions of the EU via Trade Facilitation and Institutional Support Project B3 Contributions of EU via other projects C Others 0 Total Income Expenditure Statement of the PS IGC TRACECA No. Cost Categorie Units Budget in Expenditures in 1 Personnel - PS Management and Experts 4-6 Persons Personnel - PS Support Staff 4-6 Persons Personnel - National Secretaries 12 Persons PS Premises Running Costs Office Running Costs Office Costs for PS Office Office Costs for Representative Offices Travel and Mobility Costs Working Group Meetings IGC Meeting Investments / Reinvestments - 0 Total Expenditures

63 Services provided by the PS IGC TRACECA to its Member States Provision of support to the EU project cycle management (from project identification, programming, implementation until completion and follow-up) Contact partner for other TRACECA corridor interested donors and private investors Information, Exchange and Processing Centre for IGC tasks aiming at followup, advancing and mediating decision making processes within the Member States. Know-how Centre to be used free of charge by all Member States Traffic Data Base Legal Data Base TRACECA Projects Data base Conference and event organisation according to international protocolls 2005 Expected Contributions to the PS IGC TRACECA No. Cost Categorie Amount in A Contributions of the Parties to the MLA A1 Envisaged Contributions of Parties for A2 Outstanding Contributions of the Parties for B Contributions of the EU B1 Via the Trade Facilitation and Institutional Support Project B2 Via other EU funded projects 0 C Others 0 Estimated Income

64 2005 Proposed Budget of the PS IGC TRACECA No. Cost Categorie Units Estimated Costs 1 Personnel - PS Management and Experts 7.5 persons Personnel - PS Support Staff 7 persons Personnel - National Secretaries 12 Persons PS Premises Running Costs 12 Months Office Running Costs 12 Months Office Costs for PS Office 12 Months Office Costs for Representative Offices 12 Months Travel and Mobility Costs 12 Months Working Group Meetings 3 x IGC Meeting 1 x Investments / Reinvestments Estimated Costs Expected Contributions to the PS IGC TRACECA No. Cost Categorie Amount in A Contributions of the Parties to the MLA B Contributions of the EU 0 B1 Via the Trade Facilitation and Institutional Support Project 0 B2 Via other EU funded projects 0 C Others 0 Estimated Income

65 2006 Proposed Budget of the PS IGC TRACECA No. Cost Categorie Units Estimated Costs 1 Personnel - PS Management and Experts 8 persons Personnel - PS Support Staff 6 persons Personnel - National Secretaries 12 Persons PS Premises Running Costs 12 Months Office Running Costs 12 Months Office Costs for PS Office 12 Months Office Costs for Representative Offices 12 Months Travel and Mobility Costs 12 Months Working Group Meetings 3 x IGC Meeting 1 x Investments / Reinvestments Estimated Costs Concluding Remarks About 50 % of the expected Member States contributions of 50, go directly (e.g. via NS indemnities) or indirectly (e.g. via payments to Event participation) back to the contributing countries. This rate is even to be increased, when there is a decision, that PS Representative Offices in the countries are to be equipped via the PS. The Member States have to be aware, that every delay in transmitting their contributions to the PS account will cause serious cash flow problems! Now, the turn is with the Member States to decide, whether they take the ownership of TRACECA and demonstrate their willingness to advance international transport and trade facilitation! 65

66 Recalling the advantages of being a Member of the IGC All European countries are interested to have a viable link to the TRACECA member states and vice versa in order to increase trade volume between the regions. 50 % of the TRACECA countries are landlocked with the agreements reached and the common policy on transport and trade facilitation these member states are having access to the world market via TRACECA territories or waters. With ist common policy in transport and trade facilitation adequate measures can be taken and implemented in the TRACECA regions to improve safety and security. The EU (and other donors) are in need of support from the IGC to realise projects with a regional focus the PS is the best address to give support in the frame of the new budget lines. The new membership applications, the high rate of TRACECA web-page visitors, the numerous requests of third parties to the PS or the amount of TRACECA related reports in the mass media all over the world are indicators for the attractiveness, visibility and effectiveness of this multilateral institution. Financing of Projects by International Financing Institutions Requested by IFIs Provided by the IGC Good Governance: With the membership in the IGC and the adoption of the principle rules for trade facilitation, good governance is demonstrated Feasibility of Projects: With ist staff and experiences the PS of the IGC TRACECA can provide the necessary data/information Regional Approach: IGC TRACECA is not only a regional but a multi-regional set-up 66

67 Annex II Enclosure 7: Agreement on Joint Financing of the PS Draft AGREEMENT on Joint Financing of the Permanent Secretariat of the Intergovernmental Commission TRACECA (PS IGC TRACECA) between the Governments of the Parties to the Basic Multilateral Agreement on International Transport for Development of the Europe the Caucasus Asia Corridor, The Governments of the Parties, hereinafter referred to as the Parties, to the Basic Multilateral Agreement on International Transport for Development of the Europe Caucasus Asia Corridor, signed on 8 September 1998, in Baky, hereinafter referred to as Basic Agreement, Viewing the necessity to ensure self-financing of the Permanent Secretariat of IGC TRACECA, as well as arrangement of meetings of the IGC TRACECA and its working groups established in accordance with the provisions of the Basic Agreement, Acting in accordance with the provisions of clause 3, Article 9 of the Basic Agreement, the Parties agreed to sign the present Agreement, hereinafter referred to as Agreement on Financing. Article 1 General Provisions 1. The provisions of the present Agreement on Financing shall regulate the joint financing of the activity of the Permanent Secretariat of the Intergovernmental Commission TRACECA (PS IGC TRACECA). 2. Annual Budget for each next year shall be approved by the decision of the IGC TRACECA at the Annual Meeting of the IGC TRACECA. This decision is obligatory for all the Parties. 3. A fiscal year shall last from January 1st to December 31st. 4. Contributions of the Parties and relevant accounting within the framework of the PS IGC TRACECA shall be provided in Euro unless otherwise specified in the correspondent decision of the IGC TRACECA. Article 2 Principles of Joint Financing 1. Financial resources of an annual budget shall be provided out of the contributions of the Parties to the present Agreement on Financing, as well as out of other sources. 2. Financial contributions of the Parties shall be equal. 3. The annual budget, and accordingly Parties contributions, shall be determined on the basis of: a) expenditures envisaged for the next fiscal year; b) incomes (receipts) expected in the following fiscal year; c) remaining amount of finances (balance) of the preceding year d) other revenues. Article 3 Structure of the Annual Budget 1. Revenues of the PS IGC TRACECA include: a) contributions of the Parties for the current fiscal year; b) remaining amount of finances (balances) of the preceding year; c) revenues from bank interests, exchange rates; d) grants from donors and organizations; e) other revenues 2. Expenditures of the PS IGC TRACECA annual budget shall include: a) Indemnities to Management and Officers of the PS IGC TRACECA All expenses related to the regular reimbursement of the PS IGC TRACECA Managment and Officers and also of the National Secretaries such as: salaries, medical insurance, allowances, accommodation expenses. 67

68 b) Office Expenses All expenses related to the operation of the PS IGC TRACECA Headquarters in Baky and its Permanent Representations in the Parties to the Basic Agreement including communication costs, travel expenses, cars operation, cost of the TRACECA Website, cost of the Database, materials dissemination, printing, publications, stationary; c) Re-investments All expenses related to the procurement of modernized investment goods required to operate the PS IGC TRACECA Headquarters and its Permanent Representations, such as: computer hard and software, office equipment and facilities, car, refurbishment/renewal of offices; d) Meetings of the IGC and Working Groups All expenses related to the organization and implementation of TRACECA events such as: travel expenses, accommodation, catering, production and distribution of documents, local transport; e) Other expenses Expenditures on bank accounts services, differences in exchange rates, any other costs not mentioned in this list. Article 4 Contributions Transfer 1. Parties shall transfer their membership contributions to the account of the PS IGC TRACECA with Headquarters based in Baky, the Republic of Azerbaijan, for the next financial year until December 31 of the current year and not later than March 31 of the next year. 2. In case of non-observance of the provisions of the clause 1 of the present Article, the IGC TRACECA, acting under the provisions of the Articles 8 and 12 of the Basic Agreement shall formulate appropriate decisions. Article 5 Budget Procedure 1. A draft budget shall be elaborated by the Permanent Secretariat and accompanied by an explanatory note. The explanatory note shall include an analysis of receipts and expenditures for the previous period and reasons for changes in separate items of the draft budget in comparison with data for the reporting period. 2. The Parties shall be informed on a draft budget and an explanatory note not less than 3 (three) months before opening of the regular session of the IGC TRACECA. 3. National Secretaries of the PS IGC TRACECA shall submit to the PS IGC TRACECA comments of the Parties to the Basic Agreement on the draft budget of the IGC TRACECA not less than 2 (two) months before opening of the regular session of the IGC TRACECA. 4. Comments of the Parties shall be enclosed to an explanatory note and submitted to the Parties 2 (two) weeks before the meeting of the PS IGC TRACECA. 5. The draft budget, explanatory note and comments of the Parties shall be considered at the meeting of the PS IGC TRACECA. 6. Parties shall be informed on the draft budget agreed in accordance with items 2-4 of the present Article not less than 3 (three) weeks before opening of the regular session of the IGC TRACECA. 7. The Secretary General of the PS IGC TRACECA shall introduce the draft budget to the IGC TRACECA for approval. 8. Before approval of the budget expenses shall be incurred on the assumption of ensuring regular activities of the PS IGC TRACECA, taking into account expenditures for the similar period of the past fiscal year. 9. On spending the amounts approved in accordance with the certain item in the budget, the Secretary General of the PS IGC TRACECA is authorized in case of need to allow utilization of the resources within the limits of 20 % of the given item by economizing funds in other items. 10. The Secretary General of the PS IGC TRACECA shall be responsible for the budget management in accordance with the provisions of the present Agreement on Financing and on the basis of the IGC TRACECA decisions pertaining to the working program and budget. 68

69 11. The Secretary General of the PS IGC TRACECA shall provide a Financial report on the budget execution for the preceding year. The Financial report will be adopted by the Resolutions of the IGC TRACECA. 12. The IGC TRACECA will establish an auditing team on supervision over the budget execution. The team will include 3 experts from different Parties, none of which is the Chairman-in-office. The staff of the auditing team will be determined by the Resolutions of the IGC TRACECA. 13. The auditing team will have access to all books of financial accounts and other relevant documents. The PS IGC TRACECA shall be liable to assist with financial supervision and to provide all the required references on control issues. 14. Outcomes of an audit will be drawn up in an Auditors' report inclusive of conclusions of the experts and their recommendations on improvement of financial activities of the PS IGC TRACECA. This Auditors' report will be signed by all members of the auditing team. The Secretary General of the PS IGC TRACECA is authorized to provide his/her comments to the report in written form. 15. Before submitting the Financial report on budget execution and the Auditors report to the IGC TRACECA Meeting for consideration, the reports shall be discussed at the Meeting of the PS IGC TRACECA mentioned in item 5 of the present Article. Article 6 Financial Documents and Operations 1. Financial operations, documentation and reporting procedure will be performed in terms of the national legislation of the PS IGC TRACECA Headquarters host country in accordance with the IGC TRACECA documents and decisions. 2. All the documents pertaining to financial obligations including accounts and other bank documents will be signed by the Secretary General of the PS IGC TRACECA. 3. Accounting and other financial documents (account-books, orders, logbooks, sales checks, etc.) applied to in the routine work of the PS will be properly archived during 10 (ten) years with the view of financial reporting. Article 7 Presentation of Amendments and Additions 1. Should the Parties agree, the present Agreement on Financing could be amended or added by the Protocol on amendments and additions, which will become an integral part of the present Agreement on Financing. 2. The manner of entry into force of Protocols on amendments and additions shall be same as for the Agreement on Financing. Article 8 Depositary The Depositary of the present Agreement on Financing shall be the Permanent Secretariat of the Intergovernmental Commission (PS IGC TRACECA). Article 9 Entry into Force and Validity 1. The present Agreement on Financing shall enter into force thirty days after the forth Document of Ratification or Acceptance is deposited with the Depositary, said in Article 8 hereof. 2. Should the present Agreement not enter into force before January 1, 2006, it shall be provisionally applied till its entry into force. 3. Provisional application of the present Agreement on Financing shall terminate by its entry into force. 4. For every country, which ratifies, accepts or accedes to the present Agreement on Financing after the forth Document of Ratification or Acceptance is deposited with the Depositary, the Agreement shall enter into force after thirty days upon depositing its Document of Ratification, Acceptance or Accession. 5. The present Agreement on Financing shall be effective for the period of validity of the Basic Agreement. 69

70 Done at Baky, Republic of Azerbaijan, on.. April 2005 in one original copy in the English and Russian languages, both of them being equally authentic. For the Government of the Republic of Armenia For the Government of the Republic of Moldova For the Government of the Republic of Azerbaijan For the Government of the Republic of Bulgaria For the Government of Georgia For the Government of the Republic of Kazakhstan For the Government of the Kyrgyz Republic For the Government of Romania For the Government of the Republic of Tajikistan For the Government of the Republic of Turkey For the Government of Ukraine For the Government of the Republic of Uzbekistan 70

71 Annex II Enclosure 8: Presentation of New EC Funding Appendix 8 External Assistance Europe as a global player Legislative package for external actions EC / AIDCO A2 E. Dalamangas 1 Why a new policy? Improve effectiveness: acting at the right level Improve efficiency: pooling of resources at EU level brings more influence Catalytic effects: pooling expertise EC / AIDCO A2 E. Dalamangas 2 71

72 Effectiveness: overhaul of current instruments Plethora of geographical and thematic instruments (35 regulations) in addition to partnership and association agreements Excessive number of budget lines (more than 90) Parallel application of a multitude of implementation modalities; several committees for programming (administrative cost and risk of incoherence) EC / AIDCO A2 E. Dalamangas 3 Principles of simplification Policies lead instruments: Simplify structures and procedures Ensure overall policy coherence Output-oriented resource allocation Better dialogue with MS, partners and other donors EC / AIDCO A2 E. Dalamangas 4 72

73 Policies and Instruments POLICY LEVEL Co-operation policies Neighbourhood policy Pre-accession policy Specific policies STRATEGIC PLANNING AND PROGRAMMING LEVEL CSPs/RSPs Thematic strategies Action plans INSTRUMENT LEVEL DCECI SI EPNI PAI HAI MFAI INSTRUMENTS AND IMPLEMENTATION LEVEL Limited number of budget lines EC / AIDCO A2 E. Dalamangas 5 The new Instruments Development & Economic Co-operation (new) (Asia, Central Asia, East-Jordan, Latin America, ACP plus thematic) European Neighbourhood & Partnership Instrument (new) (TACIS, MEDA and cross-border cooperation) Pre-Accession Instrument (new) (candidate and potential candidate Countries: the Balkans) Instrument for Stability (new) Horizontal Humanitarian Aid Instrument Macro-Financial Assistance EC / AIDCO A2 E. Dalamangas 6 73

74 Financial allocations by instrument Indicative amounts : 2013: Development & Economic Cooperation M of which for ACP states European Neighbourhood Policy : M Pre Accession: M Stability Instrument M EC / AIDCO A2 E. Dalamangas 7 The European Neighbourhood and Partnership Instrument (ENPI) EC / AIDCO A2 E. Dalamangas 8 74

75 What is the ENPI The ENPI is the financial instrument designed to support the European Neighbourhood Policy and the strategic partnership between EU and Russia It will operate from 2007 and replace MEDA, Tacis and other existing instruments It will cover Community assistance to 17 Countries: Russia, Belarus, Ukraine, Moldova, Armenia, Georgia, Azerbaijan, Morocco, Algeria, Tunisia, Libya, Egypt, Israel, Palestinian Authority, Syria, Jordan, Lebanon It will have a specific Cross Border co-operation operation component covering as well border regions in the Member States EC / AIDCO A2 E. Dalamangas 9 Four keys to decipher the ENPI regulation A policy driven instrument An enabling regulation The central role of programming The specificities of Cross border Co-operation operation EC / AIDCO A2 E. Dalamangas 10 75

76 A policy driven instrument Art. 1 develop an area of prosperity and friendly neighbourhood Art. 2 the first 3 objectives: political dialogue and reform, legislative and regulatory approximation, institution building Art. 3 policy framework: Partnership and Co-operation operation Agreements, Association Agreements, Strategies, Action Plans Art. 7 allocations reflecting the level of ambition of the EU partnership with a Country or a Region as well as taking into account needs and specific characteristics EC / AIDCO A2 E. Dalamangas 11 An enabling Regulation Regulation designed having in mind the need to allow all tools necessary for aid to be effective No restrictions of the type of beneficiaries (Art. 14) No restriction on the type of measures (Art 15): foresees twinning alongside budgetary support Provisions allowing to finance projects involving countries covered by different instruments (Art. 27) EC / AIDCO A2 E. Dalamangas 12 76

77 Cross Border Co-operation operation The ENPI most innovative feature: for the first time assistance to MS and third countries will be delivered under a single regulation This will bring a radical improvement over the current situation allowing financing of joint programmes and projects It combines external policy objectives with Economic and Social Cohesion It will be co-financed by the ERDF under the provisions of this regulation EC / AIDCO A2 E. Dalamangas 13 Development Co-operation operation and Economic Co-operation operation Instrument (DCECI) EC / AIDCO A2 E. Dalamangas 14 77

78 Geographical coverage All countries, territories and regions not covered by Pre-accession and Neighbourhood Instruments: mainly Africa, Caribbean, Pacific (but not Overseas Countries and Territories), Asia, Central Asia, East- Jordan and Latin America Legal base: articles 179 and 181a of the Treaty EC / AIDCO A2 E. Dalamangas 15 Objectives and principles (title I) Objective: all forms of cooperation (including external aspects of internal policies); all type of measures Principles: coherence co-ordination ordination and complementarity multilateral approaches national development strategies, reform policies, sector wide approaches and budget support respect for human rights and democracy EC / AIDCO A2 E. Dalamangas 16 78

79 Programming and allocation of funds (title II) (1) Geographic programmes: country and regional strategies / multi-annual indicative allocations based on needs and performance criteria: up to seven years mid-term review, ad hoc reviews dialogue with partner countries involving civil society (ownership, national development strategies) indicative programmes: priority sectors, specific objectives, results and indicators, financial allocations EC / AIDCO A2 E. Dalamangas 17 Programming and allocation of funds (title II) (2) Thematic programmes: : thematic strategies up to seven years priority areas, specific objectives, results and performance indicators, financial allocation(s) mid-term review, ad hoc reviews global initiatives EC / AIDCO A2 E. Dalamangas 18 79

80 Implementation (title III) (1) Annual Action Programmes on the basis of strategies for information to MS Special measures outside multi-annual strategies and indicative programmes (crisis response) for information to MS above 15 M : comitology (advisory) EC / AIDCO A2 E. Dalamangas 19 Final Provisions (title IV) Annual report Participation of countries not eligible under the Regulation: legal base for thematic programmes covering the whole world or several regions, regional programmes covering several instruments, global initiatives Suspension of aid Financial amount (total and budgetised EDF) EC / AIDCO A2 E. Dalamangas 20 80

81 thank you for your attention EC / AIDCO A2 E. Dalamangas 21 81

82 ANNEX II Enclosure 9: Action Programme Appendix 9 TRACECA ACTION PROGRAMME Country Budget Title 1. UZB All 13 countries 3. Kaz-Azer-Geo-Ukr Rehabilitation of Galaba Termez Railway. Supply of rail truck Material Comment CA AP Trade Facilitation and Institutional Support AP 2003 Regulation on the Transport of Dangerous Goods along the TRACECA Corridor AP TUR Navigational Channel of Turkmenbashi. AP countries Freight forwarders Training Courses AP countries Maritime training AP Central Asia countries Development of coordinated national transport policies CA AP Central Asia countries Pre-feasibility study for the road Sari-Tash Dushanbe-Termez CA AP ROM, BUL,UKR, TURKEY, GE KAZ, UZB Improvement of maritime links between TRACECA Corridors and TEN Corridors Feasibility study for Rehabilitation of the road connecting Kazakstan and Uzbekistan via Aktau Regional AP 2004 Regional AP AZ Supervision/ Rehabilitation of Gazi Mammed highway Regional AP All TRACECA countries Training of operational air transport control staff of South Ring States Regional AP

83 ANNEX II Enclosure 10: Action Programme 2005 Appendix 10 TRACECA Projects 2005 Total Amount Euro 9.5 Million (Tacis Regional and Central Asia AP 2005) Project Title Project Budget Brief Description Analysis and 2.5 Mio. (incl. Main project components will be: forecasting of traffic supply of GIS Trade Forecasting Model Phase II, including establishing flows for the TRACECA software) Countries and interregional Transport Integration. a GIS based system compatible with EU GISCO and other EU financed systems in Mediterranean and the Balkans. Specific attention given to selected Central Asian TRACECA corridor links Coordination of activities of National Transport Authorities of the TRACECA corridor countries; follow-up of running contracts. Assistance to working groups and organisation of TRACECA events Assistance to and coordination of the identification of new Organisation of the Transport Dialogue between EU and NIS in the framework of the new European Neighbourhood Policy Strengthening of Transport Training Capacity in NIS countries Rehabilitation of the Railway line between Tbilisi and Yerevan Central Asia Action Plan Actual Port Development, Masterplanning and feasibility study for Port of Aktau in Kazakhstan TRACECA projects 1.0 Mio. Organisation of meetings of the 4 working groups to be established after the Nov. 04 Transport Ministerial conferences in Baku. 2.0 Mio. (incl. 0.5 Mio. supply of training materials and equipment) Main project components will be: Assessment of existing training measures and trainees capabilities Follow-up of the TRACECA projects Capacity Development for Senior Transport Sector Officials (ongoing), Maritime Training and Freight Forwarders Training Courses (both presently launched) Institutional strengthening of existing training centres and institutions delivering training in the transport sector Supply of training materials and equipment Train-the-trainers courses 2.0 Mio. Feasibility Study including an inspection of the entire line and supply of materıal for rehabılıtatıon of the most urgent sections identified. 2.0 Mio. Main components will be: Evaluation of actual and estimation of future traffic Analyses of the present utilization of port, railway and road facilities Identify operational bottlenecks Determination of Port Infra- and Suprastructure needs Investment volume Feasibility study for the investment components Port operation concept Recommendation for Reorganisation and Commercialisation of the Port of Aktau with specific regard to the introduction of a PPP-scheme (Private Public Partnership) Technical specification for tendering for all investment parts 83

84 Annex II Enclosure 11: TRACECA Database Concept Presentation Appendix 11 UPDATING THE TRACECA DATABASE 2005 It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts. Sir Arthur Conan Doyle (author of Sherlock Holmes) TFIS Progress Report I February

85 AGENDA TRACECA traffic database purpose and current status Goals and challenges for database update Next Steps THE TRAFFIC DATABASE EXISTS TO ASSIST THE MEMBER STATES What the database is What the database is for Database of historical information on freight and passenger flows within and between TRACECA countries with supporting infrastructure and socio-economic data to assist national and international bodies asses feasibility (including forecasting) of specific transport projects assist national and international bodies in overall network planning (including forecasting) promote the use of the TRACECA corridor by commercial operators by providing operational information assess the performance of the TRACECA corridor compared to other transport corridors 85

86 ACCESS IS FREE FOR CONTRIBUTING TRACECA COUNTRIES BUT OTHERS MAY PAY TO GENERATE INCOME FOR TRACECA Data input Database management Database usage TRACECA MEMBER NATIONS TRACECA PS TRACECA MEMBER NATIONS Donor/other associated institutions Contributing member nations and other associated institutions provided with password for free Other 3 rd party users Password protected web access Other 3 rd party users pay for access providing TRACECA with additional income THE DATABASE IS COMPOSED OF 4 KINDS OF DATA Category Traffic flows Description Vehicle and cargo flows at particular points (eg border crossings, ports) Origin/destination information for cargo Initial origin and/or final destination of cargo flows, classified by commodity Infrastructure/ network characteristics Physical and operational details of the transportation network (eg road lengths, quality and average speeds) Socio-economic data Region based GDP, production and population data 86

87 SIGNIFICANT GAPS IN DATA THREATHEN ITS ONGOING USEFULNESS Category Traffic flows Percent of tables completed (total all countries) 100% 37% 26% 13% 0% 0% 0% Origin/ destination information for cargo 100% 0% 77% 46% 15% 0% 0% Infrastructure/ network characteristics Socio-economic data 100% 0% 100% 0% 37% 14% 14% 0% 0% % 38% 15% 0% 0% AGENDA TRACECA traffic database purpose and current status Goals and challenges for database update Next Steps We need a Database that works 87

88 WE AIM TO ACHIEVE A COMPLETE, ACCURATE, UP TO DATE AND USEABLE DATABASE This Completed 100% completion of requested tables by all countries Not this Accurate Tables filled out correctly and consistently Up to date Tables filled out up to previous year User friendly Easy to use interface that allows quick access to data WHAT ARE THE CHALLENGES THAT ARE STOPPING US FROM MEETING THE OBJECTIVES? Objectives Completed 100% completion of requested tables by all countries Accurate Tables filled out correctly and consistently Up to date Tables filled out up to previous year Potential challenges Payment required for information and funds are not available (?) Requested information does not exist (?) Requests are being directed to the wrong people/groups (?) Other User friendly Easy to use interface that allows quick access to data 88

89 WE WOULD ALSO TO REFINE THE CARGO ORIGIN/DESTINATION INFORMATION CAPTURED Category Description Traffic flows Vehicle and cargo flows at particular points (eg border crossings, ports) Origin/destination information for cargo Initial origin and/or final destination of cargo flows, classified by commodity Infrastructure/ network characteristics Physical and operational details of the transportation network (eg road lengths, quality and average speeds) Socio-economic data Region based GDP, production and population data AGENDA TRACECA traffic database purpose and current status Goals and challenges for database update Next Steps 89

90 WE PROPOSE THE FOLLOWING PROCESS TO UPDATE THE DATABASE Action By when Who Provide outstanding data for available tables for ? NS Develop request for information March 15 PS Complete data questionnaire and return to PS? NS Update the traffic data base 3 months after providing the data NS PROCESS FOR UPDATING DATABASE Permanent Secretariat National Secretaries Permanent Secretariat develops standard data collection spreadsheet National Secretaries responsible for collection of data in cooperation with TRACECA-Institutions Permanent Secretariat cares for data input in overall database Input for: Feasibility Studies Forecasting Programming of future TRACECA projects TRACECA-Marketing activities 90

91 APPENDICES (only in the hand-outs) Country specific detail on level of completeness of data Future level of detail of requested information 91

92 ANNEX III Draft Agenda of the IGC Annual Meeting, April 2005, Baky 92

93 DRAFT FOURTH ANNUAL MEETING OF THE INTERGOVERNMENTAL COMMISSION TRACECA Baky, Republic of Azerbaijan April, 2005 ЧЕТВЕРТОЕ ЕЖЕГОДНОЕ ЗАСЕДАНИЕ МЕЖПРАВИТЕЛЬСТВЕННОЙ КОМИССИИ ТРАСЕКА г. Баку, Азербайджанская Республика,... апреля2005 г. AGENDA 1. Joint Financing of the PS IGC TRACECA 1.1. Adoption of the Financial Report for Financing of the PS IGC TRACECA in Financing of the PS IGC TRACECA in Signing of the Agreement on Financing of the PS IGC TRACECA 3. Entering into force of the Statute of the PS IGC TRACECA 4. Signing the Protocols on Amendments to the Basic Agreement 5. Presentation of starting projects in Adoption of Decision about Action Plan Adoption of IGC TRACECA Strategy. Implementation Concept. 7. Improvement of the procedure of adoption and implementation of the Decisions and Recommendations of IGC Amending the Rules of Procedure of IGC TRACECA 7.2. Amending the Statute of the PS IGC TRACECA 8. Further institutionalization of IGC TRACECA 9. Post of the Executive Secretary of the PS IGC TRACECA 10. Election of the new Secretary General of the PS IGC TRACECA 11. The Fifth Annual Meeting of IGC TRACECA Notice: draft decisions in accordance with the items of the Agenda were elaborated by PS and agreed at the Meting in Istanbul, February For the wordings of the draft decisions please see the Draft Final Resolutions of the Fourth Annual Meeting of IGC TRACECA. 93

94 ANNEX IV TRACECA Hotline Questionnaire 94

95 QUESTIONNAIRE TRACECA Hotline February 2005 The TRACECA Hotline was discussed at the Working Group Meeting in Ashgabat, Turkmenistan in February 2002 and finally agreed upon at the Second Annual Conference of the IGC TRACECA Tashkent April Currently, in February 2005 we have to follow up this decision and proceed with the implementation. The questions below should give us an overview about the present situation, the actions to be taken and problems to be addressed: No YES NO Do you have any principle problems in implementation of the TRACECA Hotline? If YES, please describe what kind of principle problems you have under YES. Do you have border crossings without TRACECA Hotline Board? If YES, please name the border crossings under YES. To be answered only if there are border crossings without a Hotline board Are all of the named border crossings of the same importance? Please give under YES the most important border crossing points to be equipped. Do you have an indication about the money needed for one Hotline board per border crossing? If yes please indicate under YES the amount in US$. Are the phone numbers to contact visible and if yes with whom the persons are connected? Please indicate, if YES. Please specify if you have crossed under YES in Question 5 any other Institution Is there communication equipment at the borders which can be used? If YES, please specify With the National Secretary With Ministry of Transport With Custom Authorities With any other Institution Public Phone Use of official phones Own Mobiles 95

96 No 9 Do you have any information about the numbers of calls to the TRACECA Hotline? If YES, please specify YES Per day Per week Per month NO 10 Do you see any problems with the existing TRACECA Hotline? If YES, please specify 11 Do you have ideas on how to improve the Hotline concept? If YES, in which field it should be improved? Working hours Better communication Others to be specified 12 If you have so far no Hotline implemented, please describe what is foreseen. To implement within 3 month 6 month 1 Year longer then in one Year 13 Do you know the reasons for not/late implementation? If YES, please specify. 14 Are you going to implement the Hotline concept if the sufficient funds are available? If YES, how much money you need for the aforementioned border crossings (per border crossing) in US$ 15 Are there running costs for the operation of the TRACECA Hotline? If YES, please specify in US$ the cost per YEAR 96

97 No 16 Do you think that the TRACECA Hotline Concept is a valuable tool to improve the border crossings? YES NO 17 Do you think it is possible to solve the problems at the main border crossing differently? For instance to establish clearance offices at the main border crossings. If YES please describe the steps to be taken to install such offices We thank you very much for your assistance. We will carefully go through your answers and we will come back with the results within the next 3 month. Yours truly, PS of the IGC TRACECA and the Trade Facilitation and Institutional Support Project Team 97

98 ANNEX V Schedule of the Meetings December 2004 February

99 Schedule of the Meetings in December 2004 February 2005 (Trade Facilitation and Institutional Support Project Institutions / Events / Persons Met Participants Issues Discussed / Investigated End of December 2004 Tashkent, Uzbekistan Association of Transport and Transport Communications of the Republic of Uzbekistan Mr. R. Fayzullaev, Chairman of the Association Mr. A. Tagirov, Head of the Department Meeting with experts of the EU TACIS project on Review of the Central Asian Railways Rehabilitation Mr. P. Pezant, Team Leader NCU, Uzbekistan Mr. K Mavlyankhodjaev Local Expert Support to the National Coordinating Unit Mr. O. Buranov, National Secretary of TRACECA in Uzbekistan Mr. V. Turdzeladze, Coordinator for Central Asia Mr. V. Turdzeladze Co-ordination. Information on EU TACIS TRACECA Programme ; Objectives of the TFIS project; Developments and restructuring of the transport sector in Uzbekistan; Activity of National Commission of TRACECA in Uzbekistan (including National Secretariat and National Legal Working Group); Joint financing of IGS TRACECA and Strategy of IGS TRACECA for the period of ; Priority projects for the development of regional cooperation (including Termez-Galaba); Activity of TACIS NCU and other donor Organizations; Activity of the Uzbek Government in the transport sector; Project priorities for Uzbekistan and Central Asia. Mr. V. Turdzeladze Information on EU TACIS TRACECA Programme; Objectives of the TFIS project; Main points of the meeting at the Association of Transport and Transport Communications; Developments and restructuring of the transport sector in Uzbekistan (preconditions and background); Co-operation. 99

100 Institutions / Events / Persons Met Participants Issues Discussed / Investigated TRACECA NS in Uzbekistan Mr. O. Buranov Mr. V. Turdzeladze As per ToR. Bishkek, Kyrgyzstan TRACECA NS in Kyrgyzstan Mr. S. Zakirov Mr. V. Turdzeladze As per ToR. January 2005 Baku, Azerbaijan European Commission Mr. E. Dalamangas, Principal Administrator Mr. A. Boitsios, Task Manager Cabinet of Ministers Mr. A. Sharifov Deputy Prime Minister Ministry of Transport Mr. M. Shafarov, Head of Transport Department Ministry of Transport Mr. M. Panahov, First Deputy Minister Azpetrol Mr. T. Moser, Vice President European Commision, EuropeAid Cooperation Office Mr. X. Nuttin, Principal Administrator Mr. B. Roessig, Team Leader Mrs. A. Zwicky, Supervisor PS Mr. V. Turdzeladze Project Identification Mr. B. Roessig General Discussions on TRACECA programme; As per ToR. Mr. B. Roessig Information of the National Secretaries Working Group in Istanbul in February 2005; Discussions on the forthcoming TRACECA IGC Meeting in Baku. Mr. B. Roessig Tariff Policy of the Railways; Traffic Flows. Mr. B. Roessig Mrs. A. Zwicky Dangerous goods transportation. Mr. B. Roessig Programming; Cross Border Subjects new instruments of the EC financing; Subjects as per ToR 100

101 Institutions / Events / Persons Met Participants Issues Discussed / Investigated TACIS Monitoring Mr. B. Roessig Inception Report Mr. H. Matters, Monitor Mrs. A. Zwicky Mrs Laleh Abasova, National Monitor Scott Wilson, Mr. B. Roessig EBRD project on highway construction in South Caucasus. Mr. B. Empringham Ceng MICE, Technical Director International Highways Asian Development Bank Mr. B. Roessig Azerbaijan Highway System related issues; Headquarters Border-crossing procedures; Mr. Hong Wang As per ToR. Principal Economist Transport and Communication Division East and Central Asia Department Sops LLC, Mr. B. Roessig Oil transport; Eddy Lim, Director Transportation of the dangerous goods. German Agency of Technical Co-operation (GTZ) Mr. M. Schwickert Mrs. A. Zwicky Activities of GTZ in each TRACECA country (Caucasus initiatives of GTZ and national programmes) in the field of transport and logistics Regular Commutation / meetings with TRACECA National Commissions in Azerbaijan, Armenia and Georgia National Secretaries Mr. B. Roessig Mrs. A. Zwicky As per ToR Coordination and cooperation; 101

102 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Tashkent, Uzbekistan TRACECA NS in Uzbekistan Mr. O. Buranov ADB Uzbekistan Resident Mission Mr R. Nadirshin, Portfolio Manager Mr. Turdzeladze Mrs. Yu. Usatova TACIS Projects Information on the tender procedures of the EC was provided; principles of procurement under EC regulations; Termez-Galaba Railway Line Rehabilitation provided information the project status (upon request); Information of the National Secretaries Working Group in Istanbul in February 2005; Co-operation with the TRACECA National Commission in Uzbekistan. Mrs. Yu. Usatova ADB s Programme in logistics (investigation on logistics projects funded by the Bank); Regional transport initiatives; Central Asian Regional Economic Cooperation (CAREC) Programme; Priorities and intentions of the ADB in the regional funding TRACECA NS in Uzbekistan Mr. O. Buranov Mr. V. Turdzeladze As per ToR General discussion on the items listed in the Agenda of the NS Meetings in Istanbul, February NCU, Uzbekistan Mr. K. Mavlyankhodjaev Local Expert Support to the National Coordinating Unit Mr. V. Turdzeladze Information on the identification of new projects for TRACECA Action Plan and Central Asian Action Plan for ; Activity of the NCU in programming (General information on Perishable goods transportation project) it was agreed later on follow up on the subject:; Priority regional projects as per current situation; Co-ordination. 102

103 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Association of Transport and Transport Communications of the Republic of Uzbekistan Mr. A. Tagirov, Head of the Department Association of the International Freight Forwarders of Uzbekistan, Ordinary Member of FIATA Mr. A. Mukhidov, Vice-President Almaty, Kazakhstan Mr. V. Turdzeladze The priority of transport sector development in Uzbekistan and in the region; Traffic forecasting project of TRACECA (action plan of TRACECA for ); Procedures of formation of Central Asian action plan for 2006; Position of the Association creation of the networks of the logistic centers throughout Central Asia; General discussion on the items listed in the Agenda of the NS Meetings in Istanbul, February Mr. V. Turdzeladze Brief information about procedures of identification of new projects for Central Asian countries to be funded by EC; FIATA project proposals forwarded to the TRACECA National Secretary for further review; Cooperation between FIATA, Transport Association, National Commission and National Coordinating Unit. Regular meetings / communication with representative of the EC Delegation Mrs. Alia Baidebekova, Project Manager Mr. V. Turdzeladze Mrs. Yu. Usatova De-briefing; Coordination. 103

104 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Regular communication with the representatives of the Ministry of Transport and Communication of Kazakhstan Mrs G. Musina Deputy Director of the Department of Transit Policy and Foreign Relations Mr R. Jenalinov, Head of the Department of the International Relations and Transit Policies Mrs Z. Abigyeva, Head of International Organisations Unit Mrs S. Makazhanova, Senior Specialist of the Department of Transit Policy and External Relations Mrs. O. Fomenko, Senior Specialist of the Department of Transit Policy and External Relations Kiev, Ukraine TRACECA Intergovernmental Commission Mr Y. Tertyshnyk, National Secretary of Ukraine Ministry of Transport and Communications of Ukraine Mr. O. Kebal, Head of Investment and Innovation Unit Mrs. T. Dyachenko, Chief Expert of Transport Systems Co-ordination and Development Department Commercial Sea Port of Ilyichevsk Mr. G. Tokman, Head of Investment and Development Department Delegation of the European Commission in Ukraine Dr. Franz J. GOETZ Chief Economist Team Leader Mr. V. Turdzeladze Mrs Yu. Usatova Mrs. O. Nevmerzhytska, Mrs. O. Senyuk Mrs. O. Nevmerzhytska Mrs. O. Senyuk Provision of information; Reporting; Cooperation. Progress on TRACECA TFIS project; Discussion and comments on Inception Report; New transport projects proposals: evaluation and definition. Presentation of the recent events and activities in the framework of the TRACECA programme; Regional Transport Policy; New transport projects proposals: evaluation and definition. Mrs. O. Senyuk Discussion on the Port of Ilyichevsk project proposal; Hot line facilities in the Port of Ilyichevsk Mrs. O. Nevmerzhytska Mrs. O. Senyuk Discussion and comments on the Inception report of TFIS project; Definition of new transport projects in the region; Brief Discussion on TRACECA, project s activities and cooperation with EC Delegation; Discussion on TRACECA Traffic Database 104

105 Institutions / Events / Persons Met Participants Issues Discussed / Investigated February 2005 Baku Azerbaijan Embassy of the Republic of Uzbekistan Mr. B. Roessig TRACECA related issues; Mr. I. Irgashev, Ambassador General information exchange. Mr. Kubanichbek Urazbaev, First Secretary EBRD Headquarters Mr. B. Roessig EBRD Road Project of the South Caucasus and other projects; Mrs. Lynn O Grady, Economist Priorities in the regional financing programme; Coordination as per ToR. Embassy of the PRC Mr. Zhang Xiyun, Ambassador Extraordinary and Plenipotentiary Mr. B. Roessig Mrs. A. Zwicky Mrs. L. Trenkova TRACECA related issues; General information exchange. IPD Mr. Wolfgang Giesers Mr. B. Roessig Textile Transportation: opportunities and issues Regular Commutation / meetings with TRACECA National Commissions in Azerbaijan, Armenia and Georgia National Secretaries Mr. B. Roessig Mrs. A. Zwicky As per ToR; Coordination and cooperation. Secretariat of the WTO Accession, Ministry of the Economic Development Mr. Shovgi Mehdizade Kamal Oglu, Head of the Secretariat Mrs. A. Zwicky Mrs. A. Komarova, Legal Expert PS Issues of the WTO accession related to transport; Legislation Targeted to Trade Facilitation; Coordination and cooperation activities. 105

106 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Almaty, Kazakhstan Mr. T. Abylgazin, Vice-Minister of Transport and Communications of the Republic of Kazakhstan FIATA Kazakhstan Freight Forwarders Association Mr V. Bragin, Director Mrs E. Mezentseva, Manager Mr. V. Turdzeladze Mrs. Yu. Usatova Mr. E. Suleymenov, National Secretary of Kazakhstan Mr. V. Turdzeladze Project presentation Freight Forwarding project Cooperation As per ToR Items specified in the Agenda for the Working Group meeting of the National Secretaries in Istanbul, February Special attention to the issues of co-financing / self-financing of the PS IGC TRACECA; Debt of Kazakhstan for 2004 to contribute to the system of jointfinancing; Amendments and additions to the MLA; Central Asian Action plan for (CA AP ); Project proposal on the Aktau port development (questionnaire to draft the project fiche); LPG transportation project clarification; Regional Policy in the Sphere of Transport, Strategy of the IGC TRACECA. 106

107 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Ministry of Transport and Communications of the Republic of Kazakhstan, Mr. R. Jenalinov, Head of the Department of the International Relations and Transit Policies Mrs. Yu. Usatova Mr. E. Suleymenov As per ToR; Detailed discussion on the items listed in the Agenda of the NS Meetings in Istanbul, February 2005 : Current status of implementation of the Decisions of the Third Annual Meeting of IGC TRACECA; Status of ratification / internal legislative procedures of the Protocol on Amendments to the MLA; Detailed discussion on TRACECA Strategy position of Kazakhstan; Protocol(s) on amendments of the MLA position of Kazakhstan; Position on Co-financing of the PS IGC TRACECA in Position on the Draft Agreement of Joint Financing of the PS IGC TRACECA The TRACECA Hot Line Concept comments and position of Kazakhstan. Co-ordination and cooperation. Mr. F. Prescha, Man Power Development Expert, Team Leader in Central Asia Mrs. Yu. Usatova Submission of the Progress Report II of the project. Regular meetings / communication with representative of the EC Delegation Mrs. Alia Baidebekova, Project Manager Regular communication with the representatives of the Ministry of Transport and Communication of Kazakhstan Mrs S. Makazhanova, Senior Specialist of the Department of Transit Policy and External Relations Mrs. O. Fomenko, Senior Specialist of the Department of Transit Policy and External Relations Mr. V. Turdzeladze Mrs. Yu. Usatova Mr. V. Turdzeladze Mrs. Yu. Usatova De-briefing; Coordination. Provision of information; Reporting; Cooperation. 107

108 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Tashkent, Uzbekistan TRACECA NS in Uzbekistan Mr. O. Buranov Mr V. Turdzeladze Recent position, obtaining on the updated information on the items specified in the Agenda for the Working Group meeting of the National Secretaries in Istanbul, February 2005; Special attention to the issues of co-financing / self-financing of the PS IGC TRACECA; Central Asian Action plan for (CA AP ); Regional Policy in the Sphere of Transport, Strategy of the IGC TRACECA position of the MFA of Uzbekistan. Kiev, Ukraine Ministry of Economy of Moldova Department of Foreign Economic Cooperation Stela Melnic, Head of Division for Technical Assistance Coordination Ministry of Transport and Communications of Ukraine Mrs. T. Dyachenko, Chief Expert of Transport Systems Co-ordination and Development Department Mrs. O. Nevmerzhytska Discussions and comments on Inception Report of TFIS project; Project identification//donor s coordination. Mrs. O. Nevmerzhytska, Mrs. O. Senyuk Progress on TRACECA TFIS project; Presentation of results of BSEC Conference held in Saloniki in January Discussion on common interests integration of BSEC, TRACECA and BS PETrA seeing a new EU Neighbourhood policy. TRACECA Intergovernmental Commission Mr Y. Tertyshnyk, National Secretary of Ukraine Mrs. O. Nevmerzhytska Mrs. O. Senyuk TFIS Activities; Co-financing / self-financing of the PS IGC TRACECA New projects proposal definition Hotline concept development in Ukraine Discussion on preparation of PS Meeting to be held in Istanbul on February

109 Institutions / Events / Persons Met Participants Issues Discussed / Investigated Delegation of the European Commission in Ukraine Dr. Franz J. Goetz Chief Economist Team Leader National Coordination Unit of Ukraine, Mr O. Rozhkov, Deputy Director NKS Training Consulting Centre of AsMAP Larissa Dobrukha, Deputy Director Istanbul, The Republic of Turkey Working Group Meeting of the Permanent Secretariat of the IGC TRACECA Permanent Representatives of the PS; Secretary General; PS Experts; Representatives of the EC. Mrs. O. Nevmerzhytska, Mrs. O. Senyuk Mrs. O. Nevmerzhytska Mrs. O. Senyuk Mrs. O. Nevmerzhytska Mrs. O. Senyuk Consultants of the TFIS project As per Agenda. Debriefing on the TFIS activities; Planning of activities for the future; Elaboration on assistance to the EC Delegation; Discussion on Progress Report II of on-going TRACECA Project Capacity Development for Senior Transport Sector Officials ; Discussion on situation of Tacis 2003 Project Infrastructure Improvement on border crossing between Ukraine and Moldova. Discussions and comments on Inception Report of TFIS project; Project identification for both National and Regional Tacis programmes; Discussion on project preparation Infrastructure Improvement of border crossing between Moldova and Ukraine". Coordination and Cooperation within TRACECA; Debriefing on the TFIS activities; Discussion on Progress Report II of on-going TRACECA Project Capacity Development for Senior Transport Sector Officials 109

110 ANNEX VI Background Information on the TRACECA Visa 110

111 TRACECA VISA Background The TRACECA Visa concept was proposed at the Second IGC TRACECA Annual Meeting in April 2002, as a set of arrangements comprising 3 amendments and one new Technical Annex to the Basic Agreement, re-iterated below, and adopted by the Decision of the Third Annual IGC TRACECA Meeting in October 2003: 1- amendment to the Article 4 of the Basic Agreement, quote: For 3 years when the given amendment comes into force, the Parties have to ensure free issue of single/double entry visas for persons transporting and/or accompanying humanitarian goods and reconstruction materials transported to Afghanistan via the TRACECA international transport corridor Europe-Caucasus- Asia ; In addition the below stated amendments have been adopted and it is often understand, that this amendments are part of the TRACECA Visa Concept 2- amendment to the Article 4, adding clause 5 thereof, to the basic Agreement, quote: The Parties will not apply customs, bank guarantees, financial risk insurance policies, railway guarantees for transit of goods by railway transport. 3- amendment to the Appendix 2 of the Technical Annex on International Railway Transport to the Basic Agreement: To apply VAT zero-rate on railway transport services on international and transit railway connection, including transportation, forwarding, loading/unloading and storage services ; 4- The New Technical Annex on the International Customs Transit Procedures in the Corridor Europe Caucasus Asia for the Carriage of Goods by rail Using the SMGS Railway Bill. The Protocol of amendment to the Basic Agreement, which comprised of the above provisions, was signed by all parties with the following reservations: Bulgaria with no impact to the application of the subject provisions, just a re-wording compatible with national regulations; Georgia, with regard to amendment 3, as the national tax law does not permit for application of this provision; Kazakhstan, with regard to amendment 2 and the new Technical annex, as the earlier reservation of Kazakhstan to the TA on International Railway Transport to the Basic Agreement does not allow for; Turkey, with regard to the new Technical annex, as not being a party to the SMGS Agreement. Ukraine, with regard to all provisions, as they are part of national laws and applied to all international transport corridors passing via Ukraine. Purpose easy identification of the TRACECA cargos, simplification of administrative, customs and border-crossing procedures, reduction of transit time to provide individuals whose activity is directly related to the transit of goods via the TRACECA corridor, such as truck drivers in road transport and car attendants in railways - with unhampered and simplified crossing of borders. Current status The Protocol became part of national legal orders in Bulgaria and Azerbaijan. According to the information received from National Secretaries in Istanbul Meeting of the PS, in February 2005, the Protocol will be also ratified by all other states-members of Basic Agreement by April Except for Ukraine, for the reasons stated earlier. Turkey is moving towards withdrawal of their reservation, having applied for the SMGS participation. The whole set of amendments will be in force if 4 countries have ratified these amendments. The structure in Annex VIII shows the whole legal basics of the IGC and its bodies. 111

112 ANNEX VII Legal and Institutional Environment of the IGC TRACECA 112

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115 Published February 2005 This publication has been produced with the assistance of the European Union. The contents of this publication is the sole responsibility of Dornier Consulting and KLC and can in no way be taken to reflect the views of the European Union. 115