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ANNEX I

1. IDENTIFICATION

Title/Number LIBERIA - Strengthening the General Auditing Commission of Liberia (GAC)

CRIS N° 22098

Total cost EUR 3 800 000 EUR - EU contribution (A envelope)

Aid method / Method of implementation

Project approach – Partially Decentralised Management

DAC-code 15111 Sector Public finance management

2. RATIONALE

2.1 Sector context The civil war left the country with the heritage of a strong centralized system with poor governance and non respect for rule of law. The strategy of Government of Liberia to tackle this is based on a commitment to enhancing citizen participation and ownership; building effective and efficient public institutions while strengthening the justice system. Thus the Government of Liberia has taken action to improve transparency in the management of public funds, control of corruption and strengthening checks and balances. GAC has a pivotal role to play in building a "system of national integrity". Though committed, the Government of Liberia is still in need of donors' support in rebuilding the capacity and credibility of its institutions and guaranteeing adequate independence for their operation. With GEMAP (Governance and Economic Management Assistance Programme) put into place in 2005, the Government of Liberia and its partner donors have established the foundation for a transparent and accountable system of economic governance committed to improving financial management and accountability, budgeting, expenditure management, procurement and concessions practices, controls on corruption, capacity development and donor coordination. Within the 9th EDF support, the European Commission started playing a leading donor role in supporting the GAC. The GAC continues to be one of the building blocks, by performing an external oversight function over ways public funds are utilized. It is therefore of utmost importance that its capacity continue to be strengthened and sustained in the post-GEMAP era. Ultimately the European Union and the donor community rely on the capacity of the Government of Liberia to take ownership and leadership with respect to policies, procedures and structures created.

As Liberia presently ranks 138th on the Transparency International Corruption Perception Index, there is no doubt that corruption constitutes a major impediment to poverty reduction measures as well as the lack of accountability and transparency. As a national integrity partner, GAC is Liberia’s Supreme Audit Institution (SAI) involved in external auditing of the executive and is one of the partners having a complementary role in a national anti corruption strategy even if traditionally an SAI does not have an anti corruption mandate. Thus while GAC's primary role is that of being an organ reporting to the Legislature, ultimately GAC’s effectiveness and successful endeavours are dependent on the strengths and weaknesses of the other partners in the national integrity system.

A design study was prepared to support the formulation of the project based on GAC's policies and plans, the current situation at the GAC, EU and other donor support, and secondly to support in the formulation of the project. It sought to analyse two main components of GAC’s overall effectiveness

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in achieving its Executive Law mandate - that of being the country’s SAI involved in post facto external auditing of the budget execution process. The mission firstly assessed the internal institutional status of GAC in terms of organization, methodologies and practices in the context of effective use of national funds and donor contributions. The objective criteria of auditing precepts of the INTOSAI Lima Declaration were used as benchmarks to conduct this institutional analysis which led to an overall conclusion that GAC does encompass all 10 mandated attributes and strives to improve/upgrade upon each. However considerable additional strengthening efforts are needed in identified areas. Secondly the mission analysed the external enabling/disabling environment having a direct impact on GAC’s attempt at enhancing effectively public accountability and transparency. Issues of legal and de facto independence, the state of Public Finance Management (PFM) in producing valid, complete and timely audit evidence and documentation, institutional absorption capacity, the role of the Legislature in taking up its responsibility for GAC’s audit reports, donor coordination, reaffirming the basic role of a national SAI and the long term sustainability of GAC were issues which the mission sought to assess. This design study concentrated on GAC's linkages with the Executive (Ministry of Justice/Judiciary) and the Liberia Anti-Corruption Commission from the perspective of GAC's exact mandate and its findings/recommendations being acted upon. In addition to its statutory link with the Legislature, GAC undertakes certain actions to stimulate follow up on its reports. It also does so by reporting directly to the Head of the Executive up to whom it is to revert to the necessary government entities for action on the financial/compliance or forensic reports. Up to date, the GAC has produced over 40 audit reports, which have however not lead to timely and comprehensive follow-up of the findings and recommendations. GAC plays its awareness raising role effectively through its involvement and collaboration with the media and civil society, allowing it to enhance accountability and transparency. Contrary to some other SAI systems, GAC does not have a direct legal relationship with Justice/Judicial/Prosecuting authorities, who have a crucial role to play in addressing malfeasance and anomalies reported by GAC. However, the continuance of preparing credible audit reports and dissemination of its work and findings should alert the Legislature as well as other concerned authorities even while it is clear that the authorities are themselves in dire need of strengthening. It is impossible in the framework of the project to address all the challenges. The Legislature has considerable capacity building needs (weak structures and systems, absence of permanent skilled staff etc), which need to be addressed by a comprehensive support programme targeting the institution. Strong and independent judicial systems, as well as effectively functioning executive arms, are needed for follow-up of audit reports and processing of cases, as this is for most part beyond the legal and de facto jurisdiction of the GAC. Some of the needs are already addressed by the donor community. The design study highlighted the need for a harmonious and holistic approach to strengthening the national integrity partners as well as the follow-up of GAC audit reports. Even if GAC may appear as the most solid and effective one, it is but one and cannot be fully sustainable unless capacity building needs are addressed within the other pillars. Furthermore audit follow-up requires political will on the part of both Executive and Legislature. 2.2. Lessons learnt Specific achievements made under earlier EC support to GAC have been identified, such as (1) On the job training for auditors (basic and advanced) as one of the main components contributing to the professional development of the auditors. (2) Certification activities were initiated but there is still a need to continue training substantive staff with professional accreditation (3) A human resources management system is in place but needs further implementation support (4) Auditors apply training materials, manuals and documents, but more practice and tutoring still required. (5) There is a Code of Conduct for all staff as well as a Code of Ethics for auditors (adopted from INTOSAI). A technical assistance project under the 9th EDF support is scheduled to get underway in 2010 to provide the linkage between the earlier and proposed support with the objective of avoiding overlapping and by designing them as complementary. Under 9th EDF the EU is financing the Auditor General's position (until April 2011), this considered crucial to the successful strengthening of GAC. Thus the

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sustainability of the GAC as well as donor involvement fundamentally rests with continued funding by Government of Liberia of this position post-April 2011. Another noteworthy contribution was support to the preparation of a Strategic Plan which enabled GAC to establish benchmarks to guide and gauge its progress thus allowing for a more complete and targeted approach to future EU support. The progress made in PFM reform has been further recognized by the EC's decision to grant budget support to Liberia. A Result-Oriented Monitoring (ROM) report of September 2009 concluded that earlier EC technical assistance to GAC had mostly achieved intended results and had received high visibility. Despite the commendable progress so far, there is still considerable work to be done to strengthen the external audit function in Liberia. The monitoring of the public financial system rests on the existence of a robust, credible and sustainable SAI. The project therefore seeks to build upon past experiences and achievements, and continues to promote overall and specific objectives that formed the basis of previous support from the EU and other donors. There is need to ensure long-term institutional sustainability by consolidating GAC's structures and processes and strengthening GAC in the areas of INTOSAI SAI attributes. Indirectly the project should aim, within its sphere of mandate and activity, to assist GAC address some of the external factors presently limiting its effectiveness as set out in the above Sector context.

2.3. Complementary actions The GEMAP (Governance and Economic Management Assistance Programme) put into place in 2005 is a multi-donor programme (US, EU, World Bank, International Monetary Fund, United Nations Organisation, Economic Community of West African States, African Union, bilateral partners) designed to rebuild economic and financial management in Liberia, through a series of hands-on technical assistance with co-signatory authority, as well as a more detailed and structured approach to systems reform in Liberia. Combined with the government's pro-reform agenda, the GEMAP programme has helped to improve financial management and accountability, budgeting, expenditure management, procurement, concessions practices, controls on corruption, capacity development as well as donor coordination. GEMAP is scheduled to end once Liberia has reached High Income Partner Countries (HIPC) Completion Point.

The GAC and the Swedish National Audit Office (SNAO) signed a Memorandum of Understanding in March 2009 for an 18-month period. The SNAO is supporting the GAC strategic plan in providing technical assistance in the following areas:

• General management advice to the Auditor General, management training for the senior and line managers, support to the implementation of the strategic plan including development of annualized work plans and producing annual performance reports,

• Support to the Quality Assurance (QA) team to buttress EU-funded efforts, initial training and the development of a QA manual for GAC audits by the African Organisation of English-speaking Supreme Audit Institutions (AFROSAI-E),

• Selection of staff and building of a Performance Audit (Value for Money) Department within GAC, including producing 4 pilot performance audit audits,

• Support the capacity building efforts of two Legislative Committees: The Public Accounts Committee and Ways and Means Committee, including coordinating with other donors to build up the Legislative Budget Office.

The World Bank has provided support (US$1.2 M) to the GAC through its Economic Governance Reform and Institutional Capacity Programme (EGRIP). This funding is broken down to: Infrastructure & vehicles ; Long Term Technical Support; Specialized audit training (such as IT Audit, IPSAS training, IFRS training, Procurement & Public Dept Audit Training, and PCAOB Standard 5 training); and Support to the capacity building efforts of the PAC and Ways and Means Committees. The support of all donors seeks to strengthen economic governance through enhanced public financial management either at the Legislature and/or Executive level with the EC’s particular complementary focus on external auditing as mandated to the GAC though Executive Law.

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It is foreseen to partially use the Non State Actors – Local Authorities (NSA-LA) in-county allocation (EUR 2 000 000) under the Development Cooperation Instrument (DCI) Regulation to enhance synergies between the GAC and Civil Society Organization (CSO) and, need be, to further strengthen the already effective interaction with the Media. The specific objective of the call will focus, inter alia, on awareness actions to build an adequate level of budget and adult literacy in the population and to support CSO in putting in place a monitoring system for the audit reports recommendations alongside the possible establishment of a public complaint mechanism. The increased general awareness might influence also the Legislature in being more proactive in addressing the GAC report. Principles such as empowerment, participation, non-discrimination of vulnerable groups and accountability will be adequately taken into account. In the framework of the Cotonou Agreement Article 8 – Political Dialogue, the EU and the Government of Liberia will discuss ways of improving the GAC independence and how to ensure that audit findings and recommendations are acted on within the public resource management process.

2.4. Donor coordination

Within the past GEMAP programme there was a formal coordination mechanism of all partners/stakeholders in addition to the Steering Committee (EGSC). The Government and its partners are currently discussing and deciding over the design of the coordination structures for economic governance post-GEMAP. In addition, there has been a coordination structure in place for PFM reform (including a Budget Support Working Group). The project will integrate into the Government-led economic governance coordination structures. As has been the practice under earlier EC support, the project will also have project-specific steering committee, including the other relevant donors and stakeholders. A GAC donor support group (key donors, including EU Member States) was established in 2008. Though it has met irregularly, it continues to serve as a useful coordination and information-sharing forum.

3. DESCRIPTION

3.1. Objectives

Overall objective:

Continue contributing to the building of a credible and independent Supreme Audit Institution in Liberia to serve as an effective pillar of integrity, accountability and transparency in public financial management.

Specific objective:

Continue increasing the productivity and effectiveness of the GAC in a sustainable manner so that it can contribute more significantly to its role as the national external audit organ through (1) institutional strengthening and organizational capacity building as well as (2) strengthening linkages between GAC and its stakeholders.

3.2. Expected Results and Activities:

The EU support will target two result areas which are subdivided into substantive components with supporting activities aligned with the GAC Strategic Plan. Result area 1: Institutional strengthening and capacity building of the GAC Component 1.1: Strengthening the legal and regulatory framework of the GAC in line with International standards. The aim is to further support and enhance the organizational (operational and financial) and legal independence of the GAC. This is done by technical support to reviewing the draft GAC law and all related PFM and anticorruption laws to ensure harmonization; enhance GAC's ability to fully carry out its mandate (and meet the INTOSAI standards) and to contribute to its key stakeholder institutions' ability to play their complementary roles.

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Component 1.2: Strengthening GAC's organizational structure and procedures. This aims to further consolidate the GAC's structure, internal systems and procedures. This is carried out through strengthening the GAC's Human Resources Management (HRM) system and Management Information Systems (MIS), reviewing and enhancing GAC's IT equipment and systems and purchase of software packages and necessary equipment. This includes technical assistance for selected areas. Component 1.3 Internal capacity building: This aims to consolidate the GAC's organizational structure, internal management and procedures as well as build the capacity of the GAC's management and staff in order to increase the sustainability of the GAC. This component will require the largest share of the foreseen technical assistance. This includes basic, intermediate and advanced on the job training activities, management training, further strengthening GAC’s internal quality control and the preparation, flow, archiving and retrieval of audit documentation, and supporting the establishment of a resource library. GAC capacity building will also build upon the existing good collaboration with INTOSAI and AFROSAI-E. GAC has collaborated with some of its peer SAI’s such as Ghana and Zambia. This exchange of skills and best practices has proved itself useful and relevant mechanism in the context of Liberia. On this basis, the project will not only continue promoting the approach of exchanging peer-to-peer best practices (including secondments and study tours), but will also explore ways to further develop relationships with and mobilizing support from other relevant SAI’s whose methods and procedures can be applied in a sustainable manner to the Liberian institutional and political context. In addition, GAC's capacity and expertise for forensic auditing and banking sector audits will be strengthened. Component 1.4: Supporting Decentralization of GAC offices: This component seeks to improve GAC audit coverage and efficiency by supporting the establishment of two regional offices (reflecting best practices among peer SAI’s). A field presence would allow GAC to set up ongoing yearly regional audit plans and to increase the amount of audits in an efficient cost effective manner, as presently GAC does not have the resources to audit all sub-national entities at the district and/or regional levels. A political decentralization process is currently underway in the country. Once this is approved by Legislature, it would involve fiscal decentralization to local government level. An assessment (including detailed costing) should be completed to guide the decentralization of the GAC offices. The costs of setting up regional offices have been estimated by GAC to amount to approximately USD 700 000 (based on costs calculation for 4 offices), but this takes into account only the infrastructure and logistics costs. The activities of this component will include support and technical assistance to the establishment, infrastructure and equipment of two pilot offices at county level, including trainings of staff. This may include specific collaboration and expertise within AFROSAI-E. Result area 2: Strengthening linkages with stakeholders Component 2.1: Strengthening the linkage between GAC, the National Legislature and other partners. This aims to 1) foster the relationship between GAC and the National Legislature; 2) raise awareness about GAC at the county level thus increasing the impact of audits and anti-corruption actions; 3) continue promoting GAC's role and mandate by introducing SAI’s best practices to national stakeholders 4) create awareness as well as initiate actions and corrective measures by the relevant authorities on GAC findings and recommendations 5) further strengthening existing mechanisms monitoring audit findings/recommendations. This will involve activities with the Legislature to increase awareness of their oversight role and their capacity to process follow-up reports building on earlier donor support. In addition, workshops, symposia and conferences will be conducted targeting the Legislature, Executive, local constituents and other key partners, while respecting the legal jurisdiction of each and operating within the scope of the GAC’s mandate. Component 2.2: Provision of support services to the auditees. This aims to support GAC in playing a constructive role in helping the entities to improve their systems through audit support services in accordance with its mandate. An improvement in auditee documentation would ultimately make GAC’s audit process less time consuming and more efficient. This will be done through undertaking a

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review/analysis of peer SAI existing audit support services (best practices assessment), assessment of auditee audit services needs, trainings and support to the establishment of a GAC audit advisory unit.

3.3 Risks and assumptions

Risks:

Risk Impact Mitigating measures

Government not willing or unable to increase accountability, transparency, effectiveness and efficiency Medium High

Political dialogue; advocacy for support programmes targeting nat. integrity systemand PFM reforms

Insufficient donor support exists to strengthening public finance management systems Low/Medium Medium

Donor coordination and dialogue

GoL not willing to support the organizational (legal and operational) and financial independence of the GAC Medium/High High

Political dialoguewith the Executive(in the framework of art. 8; PFM fora)

GoL not willing to fund adequately new AG at the end of present AG's tenure Medium/High High Political dialogue

with the Executive

Enabling environment for audit recommendation follow-up remains limited; possible legal amendments related to stakeholder institutions not enacted

Medium/High High Support to audit follow-up mechanisms

Assumptions:

The present project is based on the assumption that (1) the Government of Liberia and the GAC remain strongly committed to establishing modern and effective management and control procedures in order to enhance accountability, transparency, effectiveness and efficiency in the use of public resources. (2) the staffing of the GAC is appropriate to the needs and functions that the GAC is supposed to carry out. (3) the sustainability /continuity will be assured in the AG’s position before the start up of the project and (4) funding for the position will be committed by Government of Liberia throughout the project duration. In addition, it is assumed that (5) the project related staff, both national and international, will work closely in a harmonious, supportive manner to realize the activities. (6) The GAC draft law, supported under earlier EC programme adopted by Cabinet will be enacted by the Legislature.

3.4 Crosscutting Issues: The project addresses two crosscutting issues 1) accountability and transparency within the good governance theme and 2) gender equality by providing equal opportunity to both women and men. 3.5 Stakeholders:

The main stakeholders of the proposed support are:

Employees of GAC: This is the main target group of the institutional and capacity building activities, aiming at strengthening its professional capacity. As the availability of qualified candidates is limited in the labour market, GAC seeks to attract those most suitable for auditing and train them.

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National Legislature. As the overseer of public finances, its role is to address the GAC's audit recommendations and encourage their implementation. However, the Legislature is lacking in capacity and experience in budgetary and financial matters which the project seeks to address. Auditees: Currently GAC's audit effectiveness is reduced by inadequate financial records and untimely production of internal financial reporting in its auditee institutions. Support is needed through advisory services within the boundaries of GAC's mission and mandate. GAC proposes to continue building upon AFROSAI-E relations while exploring new ways and modalities to share expertise. GAC has strong linkages with civil society and media allowing it to raise awareness for accountability and transparency (mainly through a well established Communication department). People of Liberia: Ultimately they are the principal beneficiaries as public resources will be spent more efficiently and the Executive will be held to greater accountability. Donor community: Such as the EU, WB, the UN and several bilateral donors (US and SNAO) will see their efforts rewarded in having greater accountability and transparency in Liberia.

4. IMPLEMENTATION ISSUES

4.1. Method of implementation Partial decentralised management through the signature of a financing agreement with the Republic of Liberia.

The management and implementation of the project shall be carried out by a body governed by private law (private indirect decentralized operations) to which a service contract will be awarded in accordance with contract procedures for EU external actions.

The service contract must explicitly designate the two persons who will take on the duties of authorisation (imprest administrator) and payment (imprest accounting officer). In accordance with the powers delegated to them by the National Authorising Officer, the imprest administrator and the imprest accounting officer shall draw up and implement consecutive programme estimates, award contracts and grants, commit expenditure and make the corresponding payments.

The Commission controls ex ante all the procurement procedures except in cases where programme estimates are applied, under which the Commission applies ex ante control for procurement contracts > EUR 50,000 and may apply ex post for procurement contracts ≤ EUR 50,000 . The Commission controls ex ante the contracting procedures for all grant contracts.

Payments are executed by the Commission except in cases where programme estimates are applied, under which payments are executed by the private firm who will manage the Programme Estimate for operating costs and contracts up to the ceilings indicated in the table below.

The responsible Authorising Officer ensures that, by using the model of financing agreement for decentralised management, the segregation of duties between the authorising officer and the accounting officer or of the equivalent functions within the entity managing the Programme Estimate will be effective, so that the decentralisation of the payments can be carried out for contracts up to the ceilings specified below.

Works Supplies Services Grants

< EUR 300,000 < EUR 150,000 < EUR 200,000 ≤ EUR 100,000

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4.2. Procurement and grant award procedures 1) Contracts

All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the Commission for the implementation of external operations, in force at the time of the launch of the procedure in question. Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by the 10th EDF. Further extensions of this participation to other natural or legal persons by the concerned authorising officer shall be subject to the conditions provided for in article 20 of Annex IV of the Cotonou Agreement.

2) Specific rules for grants

The essential selection and award criteria for the award of grants are laid down in the Practical Guide to contract procedures for EU external actions. They are established in accordance with the principles set out in Title VII 'Grants' of the Financial Regulation applicable to the 10th European Development Fund. When derogations to these principles are applied, they shall be justified, in particular in the following cases:

- Financing in full (derogation to the principle of co-financing): the maximum possible rate of co-financing for grants is 80%. Full financing may only be applied in the cases provided for in Article 253 of the Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of the Financial Regulation applicable to the general budget of the European Communities and in Article 109 of the Council Regulation on the Financial Regulation applicable to the 10th European Development Fund.

- Derogation to the principle of non-retroactivity: a grant may be awarded for an action which has already begun only if the applicant can demonstrate the need to start the action before the grant is awarded, in accordance with Article 108 of the Financial Regulation applicable to the 10th EDF.

3) Specific rules for Programme Estimates All programme estimates must respect the procedures and standard documents laid down by the Commission, in force at the time of the adoption of the programme estimates in question (i.e. the Practical Guide to procedures for programme estimates).

4.3. Budget and calendar

Categories Components EU contribution (EUR)

1. Programme Estimates 1.2; 1.3; 1.4; 2.1; 2.2 750 000

2. Specific commitments 1.4 200 000

3. Service Contract – Long and Short-Term Technical Assistance

1.1; 1.2; 1.3; 1.4; 2.1; 2.2 2 250 000

4. Contingencies 300 000

5. Evaluation and Audit 300 000

TOTAL 3 800 000

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The operational implementation period of this project is 48 months as from signature of Financing Agreement

4.4. Performance monitoring:

The Logical Framework sets out the activity indicators for each component and these will be revised during the preparation of each annual work plan. Monitoring of the logframe will be organized by the Team Leader of the Long Term Technical Assistance.

4.5. Evaluation and audit

Evaluation: Independent consultants recruited directly by the Commission on specifically established terms of reference will carry out external evaluations as follows:

• a mid-term evaluation mission; • a final evaluation, at the beginning of the closing phase; • possibly, an ex-post evaluation.

Audit: A financial audit of the Programme Estimates will be carried out on yearly basis and the auditor may carry out any accounting, technical, administrative and legal verification deemed useful or necessary. For this purpose they have the right to examine any document relating to the project and the implementation of this programme estimate. The audit will be managed by the EU under centralised management mode.

4.6. Communication and visibility

The EU Delegation will sensitise the project beneficiaries on the need to be proactive in ensuring the maximum visibility of the EU intervention in support of the GAC.

As a general measure, information given to the press, the beneficiaries of funds, and all related publicity material, official notices, reports and publications, equipment, vehicles and major supplies shall acknowledge the European Union as co-financier and display in an appropriate way the European logo, when possible and appropriate.

The EU Delegation will continue the participation into the relevant coordination meetings and steering committee in order to ensure the communication and visibility of EU support. Visibility activities will be mainstreamed into the activities in cooperation with the GAC communications department. The EU Delegation will also ensure a correct media coverage of the Programme.

Appendix : list of acronyms

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Appendix to Annex I : list of acronyms

AAT Advanced Audit Technique AFROSAI-E African Organization of English-speaking Supreme Audit Institutions AG Auditor General AU African Union CAAT’s Computer Assisted Audit Tools CBL Central Bank of Liberia CFE Certified Fraud Examiner CSO Civil Society Organization CSP Country Strategy Paper DCI Development Cooperation Instrument EDF European Development Fund EGSC Economic Governance Steering Committee EU European Union EU MS European Union Member States EUR Euro EUROSAI European Association of Supreme Audit Institutions GAC General Audit Commission GDP Gross Domestic Product GEMAP Governance and Economic Management Program HDI Human Development Index HIPC Heavily Indebted Poor Countries HRM Human Resources Management IFMIS Integrated Financial Management System INTOSAI International Organisation of Supreme Audit Institutions IT Information technology. LACC Liberia Anti Corruption Commission LTTA Long Term Technical Assistance MIS Management Information Systems NAO National Authorising Office NIP National Indicative Programme NSA-LA Non State Actors – Local Authorities NTGL National Transitional Government of Liberia PCAP Professional Certification Assistance Programme PFM Public Financial Management PRS Poverty Reduction Strategy PSC Project Steering Committee ROM Results-Oriented Monitoring SAI Supreme Audit Institution SNAO Swedish National Audit Office SWOT Strengths, Weaknesses, Opportunities, and Threats TAT Technical Assistance Team UN United Nations USD US Dollars WB World Bank

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ANNEX II

1. IDENTIFICATION

Title/Number LIBERIA - Support to the Liberian Electoral cycle 2010-2012

CRIS N° 22294 Total cost Estimated total cost: EUR 20 500 880

EU contribution: EUR 7 000 000 (A envelope) Germany: USD 252 000 (estimated EUR 190 008) Kingdom of Spain: USD 750 000 (estimated EUR 565 500) Sweden USD 5 399 115 (estimated EUR 4 070 932) UNDP contribution: USD 285 000 (estimated EUR 214 890) (Current status of contributions/pledges to the Basket)1

Method of implementation Project approach - Joint management with an international organization (UNDP).

DAC-code 15151 Sector Elections

2. RATIONALE 2.1. Sector context

After more than a decade of civil war, a Comprehensive Peace Agreement (CPA) was signed in August 2003, outlining the political framework for post-conflict recovery in Liberia. The National Elections Commission (NEC) conducted the 2005 Presidential and Legislative elections under the Electoral Reform Law (2004) with the support and coordination of the United Nations Mission in Liberia (UNMIL) and in partnership with the international community.

As result of the 2005 Liberian elections a democratically elected Executive and Legislature (President and Vice President, Senate and House of Representatives) were established. The 2005 presidential and legislative elections were conducted with massive international assistance and oversight, including a mediator with broad adjudicatory powers. The elections were carried out under a special legal dispensation that suspended certain elections related provisions of the Liberian Constitution. Since the return to full Constitutional order in January 2006, the NEC has held eight by-elections in the counties to fill seats as they have fallen vacant, with the most recent one on 10 November 2009 and a subsequent runoff on 24 November in Montserrado County (to fill a senatorial seat) being regarded generally as a test of the Commission’s capacity to manage the upcoming 2011 elections.

The organization and the conduct of the by-election elicited significant planning, financial and logistical support from Liberia’s international partners, including United Nations Development Programme (UNDP), United Nation Mission in Liberia (UNMIL) and the International Foundation for Electoral Systems (IFES). The support of its international partners notwithstanding, the NEC was fully in charge of the process. The conduct of the first round on 10 November proved to be a significant challenge for the NEC, exposing weaknesses in planning, administration, co-ordination, management, and effective collaboration with other national institutions. The elections in general indicated the need to support the operational and planning capacity of the NEC. Further challenges not directly in the remit of the NEC were low voter turnout (20% in 1st and 22.36% in the 2nd round) and the legal environment. Nonetheless, the conduct of the run-off election on 24 November 2009 was acknowledged by political parties, civil society observer groups, the media and international partners as a marked improvement over the 1st round of voting.

A consultative conference was convened in 2007 by NEC with political parties and civil society to identify relevant reform needed on the legal framework required for successful, free, fair and credible elections, during which stakeholders indicated a strong desire for the sound conduct of various

1 The conversions to EUR are based on the exchange rate used by UNDP

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electoral processes including voter registration, boundary harmonization, constituency demarcation and the referendum. Stakeholders also noted the importance of strengthening political parties, engaging more women in politics, and building the capacity of the NEC.

At the same time, a number of the above-mentioned processes are dependent on legal reforms that have not yet been passed or enacted and will have operational implications for the elections. Among the five propositions to amend the constitution, will be: adoption of simple majority for the elections President and Vice-President; and the increase in the signature requirement for registering a political party to 10,000 signatures in 10 counties. The amendments to the Constitution submitted to the Legislature on June 2008 still need to be reconciled between the two Houses. If the propositions are agreed to via a referendum, new regulations will be required to register political parties. The NEC would also be obliged to conduct local elections within three years. If the absolute majority amendment is not passed by the Legislature in time, and a referendum is not held on schedule (the Constitution states that there should be a one-year period between the decision of the Legislature and the holding of the referendum), the NEC will be placed in an impossible situation of having to possibly conduct more than a hundred rounds of elections within a two-week to one month period.

The main political and technical challenges related to electoral processes and institutions in Liberia are related to Constituency delimitation issues; Voter registration; legal and operational shortcomings; NEC’s human, structural and physical resources and capacities; political parties; and conflict prevention.

The project will be implemented on the basis of the EU-UNDP partnership on electoral assistance existing since 1992. This partnership has proved to be of great value as it rationalizes interventions in the area and leads to more effective and timely formulation, implementation and evaluation of projects, in line with the concepts of enhanced donor coordination based on the Paris (2005) and Accra (2008) Declarations on Aid Effectiveness.

2.2. Lessons learnt

As mentioned above, coming about two years before the 2011 scheduled presidential and legislative elections, the Montserrado by-election was seen as a serious test to the capacity of the NEC to manage a nationwide electoral operation (the county’s 473, 229 voters account for 35 % of all registered voters in the 2005 elections). According to an evaluation of the by-election carried out in December 2009 by the NEC with the support of UNMIL Elections Review Team, the by-elections in general revealed the weak operational capacity of the NEC, such as the absence of a command post at the NEC headquarters; inadequate voter education; poor logistics; slow deployment of polling staff and electoral materials, and lack of consultation with key collaborating institutions such as the Liberia National Police (LNP). Other reported weaknesses included poor communication strategy with the electors; poor communication and difficult relations with key stakeholders (including political parties and independent candidates); difficult media environment and low voter turn-out.

As a result of this lessons learned exercise, several key domains were identified as entry points for capacity development, technical and financial support. Other than the capacity development to NEC, these entry points include: a) Pre-electoral operations (review of the electoral legal framework; a timely and detailed planning; the identification/verification of voting precincts; and the replacement of voters’ cards); b) Elections/voting operations (a well planned, adequately funded and executed deployment of electoral workers and elections materials; well organized voting operations); c) Post-election day operations (retrieval of elections materials and tallying of votes). In addition, other transversal domains should be addressed through a longer term perspective. More in particular d) Civic and Voter Education, e) Recruitment and training of electoral staff; and f) Institutional communication, external and stakeholders relations.

The European Union Electoral Observation Mission (EU EOM) mission deployed for the 2005 Presidential and general elections made several recommendations in its final report related to constitutional revision, elections administration, candidate nominations, voter education, registration/census, media, conduct of Legislature and Justice and Reconciliation. The bulk of the recommendations made in its final report concerning elections administration, voter education and

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media have been taken into account and are included in the UNDP and/or IFES projects. However, others - mainly related to candidate nominations and registration - have not yet been addressed. Some are pending legislative or constitutional changes, or are not part of national discourse or are contentious issues, while others Government plans to address, but there are time constraints prior to the 2011 elections.

EU was one of the main contributors to the 2005 Presidential and Legislative elections. It supported the organization of the election through a contribution agreement with UNDP. This was consolidated with a separate TA to the elections (1 consultant). In addition, a grant contract with Electoral Reform International Services (ERIS) targeted voter education.

2.3. Complementary actions

The project document encapsulates also the activities carried out by other key partners such as International Foundation for Electoral Systems (IFES) which is implementing USD project 'Building Sustainable Election Management in Liberia' funded by United States Agency for International Development (USAID) (in total USD 17,52 million) . A close coordination will be established within the Project and Technical Boards targeting an effective harmonization of the activities. The project's work plan and budget incorporates the activities implemented by IFES related to constituency Boundary Delimitation, Voter Registration, National Referendum, By-and Local Elections, Capacity Building of the National Elections Commission (NEC), Civic-Voter Education and Publication Consultation, and Assistance to NEC Magistrate Offices under its separate programme. A close coordination will be established within the Project and Technical Boards targeting an effective harmonization of the activities. UNMIL (The United Nations Mission in Liberia) will continue to play a role even in the 2011 Elections and will provide support to the electoral operations, particularly related to logistics. The process of reviewing the scope of the support is yet underway, but will mainly be limited to logistical support (transport) and security. UNMIL is not planning to deploy staff to NEC.

It should be taken into consideration that the Government may request again for an EU EOM for the 2011 elections.

The EU's Governance Portfolio in Liberia contains a democratic governance project related to Decentralization and Local Development. Through the budget line 'Non-State Actors and Local Authorities in Development', support is given to Community Radios which have an important role in promoting democracy, information-sharing and stimulating good governance.

2.4. Donor coordination

On the basis of the partnership for electoral assistance with UNDP, throughout a joint management modality and with the follow-up and support of the Joint EU-UNDP Task Force on Effective Electoral Assistance, the project will also foster a special relationship with UNMIL, United Nations Development Fund for Women (UNIFEM), United Nations Police (UNPOL) and other possible UN actors with a mandate or expertise in electoral assistance. International donors and other partners such as International Foundation for Electoral Systems (IFES), National Democratic Institute (NDI), International IDEA, Open Society Initiative for West Africa (OSIWA), Economic Community of West African States (ECOWAS) and African Union (AU) may collaborate on substantive activities.

An overall Donor Coordination Mechanism will be established which includes heads of donor agencies – both those contributing to a common basket fund and those contributing to the elections through bilateral or other means. A Project Board (PB) is the overall authority for the project and is responsible for its initiation, direction, review and eventual closure. It is the highest authority of the project responsible for making on a consensus basis management decisions for the project when guidance is required by the Project Manager. Project reviews will be made at regular intervals or as necessary. The Board will include the NEC, UNDP and the donors contributing to the Basket Fund as

2 IFES total committed funds for the electoral cycle September 2009-August 2012 are estimated to

US$4,951,781

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well as IFES and USAID. A Technical Working group (TWG) will be formed within the Board, tasked with preparing issues for discussion at the PB and to handle outstanding controversial issues. A Project Management Unit (PMU) will be the unit dedicated to administering and managing the basket. The PMU, located at the NEC, will be responsible for the day-to-day running of the project and will serve as a Secretariat to the Project Board. The Delegation has proposed a Memorandum of Understanding (MoU) to better define the project steering mechanisms, decision-making procedures, and other relevant matters for project management. This is under discussion with UNDP and other Basket donors.

The project is a good example of coordination and harmonisation and is in line with the principles of the Paris and Accra Declarations on Aid Effectiveness in the sense that a) it is clearly demand-driven and is being designed as a result of extensive consultation among the relevant actors, b) it involves a strong coordination among its stakeholders, and its resources will contribute to enhance the electoral commission’s ability to coordinate, monitor and follow-up (according to its legal mandate) on actors and partners implementing electoral activities, c) aims to support the capacity building of national institutions and to provide support based on partner countries’ national strategies, institutions and procedures; d) should complement and strengthen existing efforts in the different sectors and avoid duplication of efforts and rationalise activities.

3. DESCRIPTION

3.1. Objectives

The Action's overall objective is deepening the democratization process in Liberia with specific emphasis on improving electoral institutions, processes and laws. The specific objective is to increase ability of the NEC and the other electoral stakeholders to conduct their core activities in an impartial, transparent and sustainable manner. To achieve this specific objective, the programme will consist of five components: (1) Strengthening the National Electoral Institutions human/institutional capacities (2) Supporting NEC and core electoral stakeholders to plan and carry out scheduled electoral processes within the electoral cycle 2010-2012; (3) Undertaking electoral reform 4) Enhancing linkages between electoral assistance and parliamentary development and 5) Supporting Donor coordination.

The first and foremost partner and recipient of technical assistance will be the NEC. However, strong partnership will be developed with a wider range of stakeholders, including the Government, civil society (including domestic observer groups), and political parties, in particular with regard to confidence-building and public awareness exercises.

Gender equality is one of the crosscutting issues to the project. Women participation in the electoral process is promoted for example through working with political parties (to develop engendered party manifestos, and enhance women's participation and leadership roles), policy level advice to NEC and the Legislature, leadership training and media campaign. 3.2. Expected results and main activities

The Action’s overall strategy aims to improve electoral institutions, processes and laws in Liberia, with a particular focus on women’s participation and leadership, and conflict prevention. This strategy is based on short and longer term expected results and activities.

Each of the 5 components is embodying activities to be carried out by the NEC and/or its institutional partners, as well as other relevant actors in the electoral processes during the electoral cycles 2010-2012. These activities will be planned and executed by the national electoral institutions and actors, with the technical and financial support of development partners, in particular through the project document and basket fund to be managed by UNDP – to which this Action is the main contribution. Under each component, the activities are grouped following the electoral cycle approach and best proven practices to achieve the expected results. A Work Plan detailing all needed activities, actions and budgetary inputs to achieve these results within the timeframe has been elaborated.

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Under component one Strengthening the National Electoral Institutions, it is expected that:

Result 1: NEC capacity requirements are identified and needs addressed Main activities: (1) Tailored BRIDGE and operational training and peer-to-peer study tours/observation missions; (2) Long term capacity development programmes; (3) IT Data centre refurbishment and training. Result 2: Lessons learned from the 2011 elections serve as baseline for future programming and support Main activities: (1) Inclusive Post-elections lessons learned & review exercises. Under component two Supporting NEC and core electoral stakeholders in electoral processes, it is expected that:

Result 3: Boundary delimitation process is conducted (this result is included in the project document, but is not budgeted for as the activity is almost completed with funds from IFES and Government of Liberia. Main activities: 1) support to the boundary delimitation process 2) identifying and collecting the data 3) production of final boundaries. Result 4: Voter registration is updated and voter registration process is improved Main activities: (1) Feasibility study on voters registration modalities; (2) Financial and technical support for voters registration operations, logistics and procurement. Result 5: Civic and voter education and domestic observation are conducted Main activities: (1) Support to design and implementation of civic education programmes using an inclusive approach; (2) Establish a small grants programme for domestic observers groups and Civil Society Organizations (CSOs). Result 6: Women’s political participation and leadership is enhanced Main activities: (1) Recruitment of a Gender Advisor to build NEC's and other stakeholder's capacity; (2) Advocacy on gender issues targeting political parties, CSOs and Media; (3) Support Political Parties and NEC for institutional and internal reform targeting gender balanced policies. Result 7: Political parties capacity is enhanced, political parties are coordinated and conflict prevention measures are in place Main activities: (1) Training and establishment of resource centres; (2) Outreach and sensitization to promote dialogue and consensus building on critical issues of legal or administrative reform; (3) Support to conflict prevention and inter-party dialogue.

Result 8: Elections security forces act is in line with international standards Main activities: (1) Technical and financial support to train security forces in election related issues and responsibilities Result 9: Logistics and operational support provided to NEC and core electoral stakeholders contribute to the successful conduct of national elections and referendum Main activities: (1) Technical and financial support to the electoral operations – Referendum, Elections and run-off. 2) Logistics (such as elections material) and communication support to NEC. Support will include punctuated operational support to the NEC, including possible UNMIL logistical and communications support, under the overall coordination of UNDP. A costing calculation of the UNMIL support is underway. 3) Support to planning and budgeting exercises. Most of the funding is foreseen to go to this result area.

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Under component three Strengthening electoral laws, it is expected that: Result 10: Electoral reform is undertaken Main activities: (1) Support to legal reform initiatives through technical assistance, counselling, advocacy and comparative experiences. Under component four Enhancing linkages between electoral assistance and parliamentary development, it is expected that: Result 11: Linkages are strengthened between NEC and the Parliament Main activities: 1) Tailored induction training is available and rolled-out targeting newly elected parliamentarians and administration staff 2) Needs assessment of newly elected parliamentarians and development of tailored training programme (and provision of training booklets);3) Technical support to developing and implementing Parliament strategic plan; 4) Technical support to conduct a study on how to design and develop in house Research and Training Centre; 5) Feasibility study on the establishment of an in-house research and training centre Under component five Supporting Donor coordination it is expected that: Result 12: Project set-up and management ensured and Donor coordination mechanisms established and effectively functional Main activities: (1) Technical assistance and project management in support of the NEC and the electoral activities; (2) Donor coordination through the project steering committee.

3.3. Risks and assumptions

The project’s main assumptions are that the political context in Liberia will remain conducive to peace and stability, no major armed conflict or socio-political disruption will occur and that the donor community will manage to mobilize enough resources to support Liberia’s electoral cycle 2010-2012. Several risk factors could bear directly on the successful implementation of the elections assistance, mainly relating to the broader political landscape and electoral reform imperatives currently under consideration:

• how the recommendations of the TRC report and its recommendations are ultimately managed

• the speed with which the Threshold Bill enters into force, and the relevant Hand Bill published. The Bill is currently at impasse in the Legislature following two vetoes by the President to the proposed threshold. The delay in passing the bill presents a high risk scenario for the elections

• the extent to which any contentions around the boundary delimitation exercise are successfully managed

• the outcome of political negotiations around the proposed set of elections-related constitutional amendments, and the speed with which these are concluded

• the nature of political discourse and decisions relating to the referendum, and the success with which a referendum exercise (if it comes to be held) is undertaken.

As the above-mentioned risks have direct impact on programme interventions and outcomes, the programme will be leveraged for extensive advocacy and high level dialogue with Government, NEC, Parliament, political parties, CSOs and other key stakeholders to aim at consensus and fast-track actions. Several public statements by International Partners have expressed concern over the delay of the Threshold Bill and the risk this poses to the elections. The issue is addressed through political dialogue (incl possibly Art.8 dialogue) and close monitoring of the developments by the Delegation in order to mitigate the implications of the risks for project implementation. In addition, there are risks related to programme implementation, especially the speed with which crucial programme-operations decisions and actions are taken, as well as the extent, quality and management of both internal and external coordination. These will be mitigated through streamlining processes and procedures within UNDP for timely actions; results-based planning; Technical and

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Steering Committees and maximised joint planning. The final risk category relates to the sustainability of programme interventions and results. These will be mitigated through capacity-building, embedding the technical assistance within NEC and electoral cycle approach.

3.4. Crosscutting Issues

Women remain underrepresented in political life in Liberia, including within the Legislature, leadership in political parties, senior ranks of the public service and electoral administration. The gender sensitization needs are arguably the greatest among rural populations. The promotion of women within political parties, which serve as a training ground for future leaders, is an area needing more attention and support. Initiatives to date have also tended to focus on women’s role in elections per se (as candidates and voters) rather than adopting a holistic approach that looks at the social, economic and political barriers to greater involvement by women in political life in Liberia and seeks to adopt a mixture of hard (e.g., temporary legal measures such as quotas to increase women’s representation) and soft measures (e.g., civic education) to address these barriers. A number of legal reforms are politically contentious as they will affect who can run for office, amount of representatives per region, and how leaders are elected. Such reform always entails political tradeoffs and public institutions may often come under fire for being partial in the implementation of their mandates. Given that Liberia is a post-conflict country entering a period of heightened political tensions related to elections, and the peace dividend is yet to be felt particularly in the more remote areas of the country, there is a need to be mindful of possible flashpoints for conflict and to develop strategies to deal with these in advance.

3.5. Stakeholders

The capacity needs of the NEC are clearly spelt out in the EU EOM report of 2005 elections and in NEC’s Strategic Plan 2006-2011. EU EOM report recommends the reform of NEC’s structure, composition and procedures to “ensure confidence among political contestants and the wider public” and that “future elections will be administered in an efficient, impartial and transparent manner“. Specific areas requiring concerted and immediate support include trainings; Data Center; field operations; and voter education. NEC also needs support in enhancing its role as the key coordination body of political parties, civil society organizations and international donors in the electoral process. The NEC has 7 commissioners, including a Chairman and co-Chairman.

Political parties are in need of sustained capacity development which is tailored to the dynamics of the electoral system in Liberia. There is also need to promote dialogue and consensus building between NEC and political parties on critical issues such as legal or administrative reform and mandate and workings of the NEC. The project will support the meetings of the Inter-Party Consultative Committee convened by the NEC.

Another key stakeholder group in the electoral process is the civil society. It is relatively vibrant in Liberia comprising of an extensive range of pro-democracy and human rights organizations, trade unions, women's groups, religious organizations, youth and student groups, Diaspora and refugees groups. In 2005, the presence of domestic observer groups, perceived as neutral and impartial, enhanced citizens’ confidence in the process. However, the lack of resources and poor logistics restrict the work of many of organizations, most of which are based in Monrovia.

The project will approach electoral systems and processes within the democratic governance institutions framework, with particular attention to the Legislature, specifically targeting synergies between the project and upcoming support programmes to the Legislature. In Liberia, a five-year strategic plan and a Joint Legislative Modernization Committee were established to oversee the modernization process and ensure coordinated external support. The existence of the above ‘platform of engagement’ notwithstanding, the Legislative body remains weak and its institutional and physical support structures remain undeveloped.

Women remain underrepresented in political life in Liberia, including in the Legislature, leadership of political parties, local politics or senior ranks of the public service (including electoral administration).

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The project will look specifically at UN SCR 1325, CEDAW and MDG 3, ‘Gender Equality and Empowerment of Women’, electoral systems and processes together with parliamentary development directly impact the extent of women’s participation in political processes and within the NEC. The project includes specific activities to enhance women's participation in the political sphere.

The National Police of Liberia (LNP) is operating under the Ministry of Justice. A detailed security analysis was conducted during the formulation phase, including potential elections-related security concerns. While other projects cover for most of the security-related elements, UNPOL confirmed the need for more specialized training for police on roles and responsibilities during the electoral cycle.

The Media has a key role in the electoral process. Radio is the main source of news in Liberia. The coverage of newspapers and local TV stations is limited and with the exception of community radio stations, local media barely exists outside Monrovia. The civil war left most of the media with capacity and resource constraints. Several components of the project include media elements, such as civic education and enhancing women's participation.

The Government of Liberia (GoL) plays a key role in the process, essentially by committing resources from the State budget for NEC's running costs and election preparations. Government of Liberia has indicated to provide 12 million USD to NEC's recurrent budget during financial years 2010-2012 reflecting its commitment to the elections. If the delays continue in carrying out the electoral reforms necessary for the conduct of the 2011 elections (as presented in 3.3), this risks raising concerns over the commitment among some of the national authorities to the elections.

4. IMPLEMENTATION ISSUES

4.1. Method of implementation

The project will be implemented under Joint Management mode with an international organization. A standard Contribution Agreement will be signed with UNDP, as per the Financial and Administrative Framework (FAFA), signed on 29 April 2003 between the EU and the United Nations. UNDP is chosen as the partner as it is the lead donor in the elections assistance support in Liberia. With request dated 28 April 2010 the Government of Liberia endorsed the proposal of the EU to proceed directly with a Contribution Agreement with UNDP, therefore in this case Financing Conditions will not be signed. This will allow retroactive funding as from 19 April 2010, date of UNDP's request to the EU to contribute to the Basket Fund. Retroactivity of funding is justified in order to cover costs of activities included in the project documentation (such as voter registration, voter education) which, considering the tight schedule of the electoral assistance programme, will have to be implemented before the signature of the Contribution Agreement).

4.2. Procurement and grant award procedures

According to Article 65 of Title II (Financial Cooperation), the financial contribution of the EU will be managed through UNDP, under the general provisions of the Financial and Administrative Framework (FAFA), signed on 29 April 2003 between the EU and the United Nations.

All contracts implementing the action will be awarded and implemented in accordance with the procedures and standard documents laid down and published by the UNDP. The implementation will benefit from the Joint EC UNDP Operational Guidelines for the implementation of electoral assistance projects3 signed on 24 April 2006 by AIDCO General Director and UNDP Associate Administrator, and all the experts and consultants needed for the Project Management will be hired accordingly.

3 See http://www.ec-undpelectoralassistance.org/index.php?option=com_content&task=view&id=116&Itemid=121

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4.3. Budget and calendar

The total estimated costs for the electoral cycle of the General and Presidential Elections in Liberia amount to around EUR 28 652 000 (38 million USD). Excluding the NEC recurrent budget (GoL contribution), IFES and UNMIL support, the joint Basket Fund of UNDP is estimated to have an outstanding amount of EUR 20 500 880 (USD 27 189 4964) to be mobilized (this total figure includes the UNDP administrative fees). At this stage contributions from Spain (USD 750 000, estimated EUR 565 500), Germany (252 000 USD; estimated EUR 190 008) and Sweden (5 399 115 USD; estimated EUR 4 070 932) have been secured to the UNDP project. The Basket Fund remains with a funding gap and therefore UNDP is continuing its efforts to secure additional contributions.

Project Components UNDP Basket Fund (in EUR) Component1 Electoral institutions 464 012 Component 2–Electoral processes 15 565 086 Component 3 – Electoral laws 273 415Component 4 – Linkages between NEC and Parliament

64 960

Component 5 Coordination and Management of Donor Support

2 792 228

UNDP administrative costs (7%) 1 341 179

TOTAL 20 500 8805

The EU will contribute EUR 7 000 000 to the UNDP Basket Fund. This project can be financed under the Governance line of the 10th EDF NIP.

The operational implementation period of the project is foreseen as 33 months.

4.4. Performance monitoring

In terms of monitoring and evaluation, the project will be subject to UNDP’s current monitoring and evaluation procedures within the framework of the Joint Guidelines on reporting obligations under the FAFA. Any additional policies and procedures will be agreed to by the implementing agents, the project partners and UNDP. Regular monitoring visits by donors and Project Board will take place. Follow-up missions to be carried out by the EU-UNDP Joint Task Force will complement the monitoring activities/mechanisms of the project. Field missions by EU should be conducted to the extent possible (proposed 1-2 missions by E4 and DG DEV). In addition, ROM mission possibility should be considered. The EU Delegation in Liberia will be actively involved in the project's coordination mechanisms and supervision of the project.

4.5. Evaluation and audit

Financial transactions and financial statements shall be subject to the internal and external auditing procedures laid down in the Financial Regulations, Rules and directives of the Organization – General Conditions, Art. 16.2.

4 The conversions to EUR are based on the exchange rate used by UNDP.(fixed exchange rate for budgeting purpose; the Contribution Agreement will be regulated by the

standard provisions regarding exchange rate). 5 The conversions to EUR are based on the exchange rate used by the UNDP (fixed exchange rate for budgeting purpose; the Contribution Agreement will be regulated by the standard provisions regarding exchange rate).

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A copy of the audited financial statements shall be submitted to the European Commission by the Organization. Although only required when mandated by partnership protocols, an evaluation of the Project will be undertaken by UNDP within the project’s framework at the end of its period to learn lessons and apply these to possible follow-up on assistance activities.

In addition, an evaluation will be directly managed by the EU through funding foreseen from the 10th EDF TCF. An expenditure verification mission, directly managed by the EU, might be deployed during the life or at the end of the project. The mission might be financed from the by the 10th EDF TCF if needed.

4.6. Communication and visibility

The project implementation will ensure that communication and visibility are integrated in all its activities, mainly throughout the European Commission-UN Joint Visibility guidelines6 - consistent with the European Commission’s own “Communication and Visibility Manual for EU External Actions”. Within the inception phase of the project, a communication and visibility plan highlighting the related communication activities should be discussed and agreed between UNDP and EU appropriate services.

As a general measure, information given to the press, the beneficiaries of funds, and all related publicity material, official notices, reports and publications, equipment, vehicles and major supplies shall acknowledge the European Union as co-financer and display in an appropriate way the European logo, when possible and appropriate.

The EU Delegation will take care of ensuring a correct media coverage of the project.

Appendix : List of acronyms

6 See http://www.ec-undp-electoralassistance.org/index.php?option=com_content&task=view&id=17&Itemid=32

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Appendix to Annex II : list of acronyms

AU African Union BRIDGE Building Resources in Democracy, Governance and Elections CEDAW Committee on the Elimination of Discrimination against Women CPA Comprehensive Peace Agreement CSO Civil Society Organization DG DEV Directorate General Development ECOWAS Economic Community Of West African States EDF European Development Fund EU European Union EU EOM European Union Electoral Observation Mission E4 EuropeAid Directorate E Unit 4 (Governance, Security, Human rights and

Gender) FAFA Financial and Administrative Framework IFES International Foundation for Electoral Systems LNP Liberia National Police MoU Memorandum of Understanding NDI National Democratic Institute NEC National Elections Commission OSIWA Open Society Initiative for West Africa PB Project Board PMU Project Management Unit ROM Results-Oriented Monitoring TA Technical Assistance TCF Technical Cooperation Facility TWG Technical Working Group UN United Nations UNDP United Nations Development Programme UNIFEM United Nations Development Fund for Women UNMIL United Nations Mission in Liberia (UNMIL) UNPOL United Nations Police USAID United States Agency for International Development