APPROVED

by Decree of the President of the Republic of Azerbaijan

No. 1135 of 30 November 2016.

 

Regulations of giving and financing orders by the state bodies to

the Centre for Analysis of Economic Reforms and Communication

 

1. General provisions

 

This Regulation has been prepared in accordance with the “Charter of the Centre for Analysis of Economic Reforms and Communication” approved by the Decree No. 879 dated April 20, 2016 by the President of the Republic of Azerbaijan and regulates relations on giving and financing orders by the state bodies to the Centre for Analysis of Economic Reforms and Communication (hereinafter referred to as "the Centre").

 

2. Services provided by the Centre based on the order of state bodies

 

2.0. The Centre provides the following services (hereinafter referred to as "the Services") based on the order of state bodies, according to the purposes of this Regulation:

2.0.1. conducting Feasibility and Risk Analysis (RA) of economically-oriented state programs and economic incentive projects, conducting surveys among stakeholders related to these projects;

2.0.2. monitoring and evaluation of activities carried out in industrial parks, neighborhoods, and agro-parks, as well as economic-oriented state programs;

2.0.3. evaluation of the economic efficiency of expired economically-oriented state programs and state investment projects.

 

3. Giving orders by state bodies

 

3.1. To render the services provided for in Part 2 of this Regulation, state bodies and state-funded organizations shall annually submit their orders for the next year to the Centre until May 1 of the current year, and other state bodies when necessary.

3.2. According to Paragraph 3.1 of this Regulation, the accompanying letter, the rationale for rendering the Services, as well as other documents shall be attached to the order.

3.3. The Centre shall provide the applicant with information on the duration of the work to be done within 10 (ten) working days, financial and economic rationale, as well as service fees upon receipt of the order.

3.4. According to Article 11.8 of the Law of the Republic of Azerbaijan “On the Budget System”, state bodies and state-funded organizations shall submit their proposals on Financing Forecasting for the financing of the Services to the Ministry of Finance of the Republic of Azerbaijan until July 1 of the current year.

3.5. The Ministry of Finance of the Republic of Azerbaijan shall take measures to forecast the required funds in the relevant functional section of the state budget upon receipt of the order stipulated in Paragraph 3.1 of this Regulation by the Centre.

3.6. Budget Indicators approved for the next year in accordance with the requirements of the applicable legislation shall be submitted to the Centre no later than 10 (ten) working days upon receipt by the state bodies and state-funded organizations, and those bodies and organizations shall submit to the Centre information on the funds stipulated for the Services specified in Part 2 of this Regulation.

3.7. State bodies and state-funded organizations shall conclude a contract with the Centre in accordance with the requirements of the Civil Code of the Republic of Azerbaijan within the limits of the funds stipulated in the state budget for the provision of the Services.

3.8. With the exception of state bodies and state-funded organizations, other state bodies may conclude a contract with the Centre in accordance with the requirements of the Civil Code of the Republic of Azerbaijan within 6 (six) months upon receipt of the information provided for in Paragraph 3.3 of this Regulation.

 

4. Financing of the Services provided by the Centre

 

4.1. Payment for the Services specified in Part 2 of this Regulation on state bodies and state-funded organizations shall be carried out within the limits of the funds stipulated for these purposes in the state budget.

4.2. State bodies and state-funded organizations shall submit to the Ministry of Finance of the Republic of Azerbaijan relevant orders, withdrawal schedules, and financing documents on the economic and functional classification of the budget according to the contract concluded with the Centre.

4.3. The Ministry of Finance of the Republic of Azerbaijan shall carry out financing within the limits of the budget allocations approved in accordance with the relevant budget classification upon checking applications, withdrawal schedules, and financing documents from state bodies and state-funded organizations.

4.4. State bodies and state-funded organizations shall ensure the transfer of funds allocated from the state budget to the Centre for the services provided for in Paragraph 3.7 of this Regulation.

4.5. Except for state bodies and state-funded organizations, upon conclusion of the contract between other state bodies and the Centre stipulated in Paragraph 3.8 of this Regulation, the transfer of the funds envisaged in the contract and required in accordance with Paragraph 3.3 of this Regulation shall be provided by those state bodies to the Centre.

 

APPROVED

 by Decree of the President of the Republic of Azerbaijan of

March 6, 2021

Regulations

of preparation, implementation, monitoring and evaluation of State Programs

1. General Provisions

 

1.6.6. action - activity implemented as part of the state program with the involvement of financial resources, technical assistance and other resources to achieve results;

1.6.7. resources –  financial, human resources and other resources used for the purpose of implementation of actions specified by the state program;

1.6.8. preliminary results – preliminary indicators of the implementation of actions specified by the state program;

1.6.9. intermediary results – impacts to be caused or caused by preliminary results of actions under the state program within a short and long term perspective;

1.6.10. final results –  final indicators of the implementation of actions specified by state program;

1.6.11. effectiveness – an evaluation criteria reflecting the extent to which the goals and targets of state program are or will be achieved;

1.6.12. efficiency – an evaluation criteria measuring the extent to which the resources utilized for the purpose of implementation of state program have been transformed to expected results;

1.6.13. consistency – a criteria for assessing the extent to which the objectives of the state program meet the needs or priorities established within the target indicators;

1.6.14. indicator - quantitative or qualitative indicators that allow to introduce a simple and reliable measurement of the results achieved with the state program, to reflect the changes caused by the introduction of the state program, as well as to evaluate the performance outcomes of executive authorities (institutions);

1.6.15. Stakeholders – government authorities (agencies), individuals and legal entities directly or indirectly interested in the implementation or evaluation of the state program;

1.6.16. target group – government authority (agencies), individuals and legal entities which are expected to benefit from the results of the state program.

2. Preparation and approval of State Program

2.1. Preparation of a state program shall mean the preparation of the draft of a relevant state program in view of the main directions and priorities of country’s socio-economic development, requirements of this Regulations, as well as the proposals on economic feasibility prepared in line with own strategic plans of government authorities (agencies).

2.2. Goals and objectives of national projects implemented in respective areas, as well as the impact of the program on other spheres shall be taken into account when drafting a state program.

2.3. The respective government authorities (agencies) must be consulted when drafting a state program, and public hearing and discussions on a state program must be held in accordance with the Law of the Republic of Azerbaijan “On Public Participation”.

2.4. Structure of state program must be composed of the followings:

2.4.1. summary –  outline of key issues provided for in the state program;

2.4.2. global trends – main directions observed in the area concerned, fundamental changes expected and their potential impact on the Republic of Azerbaijan;

2.4.3. Analysis of the existing situation - a brief information on the current situation and the work done in our country in the area concerned by the state program, a generalized description of the issues, which made it necessary to prepare the program, and of the analysis made and results achieved;

2.4.4. target indicators –  indicators determined as a basis to achieve during the period covered by the state program;

2.4.5. objectives – description of targets set to achieve target indicators specified by the state program;

2.4.6. priority directions –  description of specific actions to be taken to achieve the goals, results to be obtained and resources to be employed;

2.4.7. financing mechanisms – description of the total funds allocated to achieve the goals under the state program and of the sources of the funds;

2.4.8. action plan - a description of the plan with the indication of implementing agencies (main and other implementing agencies) and period of implementation for each action specified by the state program, as well as the expected results and outcome indicators for each priority area.

2.5. Pursuant to the sub-clause 2.4.3 of this Regulations, the following methods may be used to analyze the current situation in the area concerned:

2.5.1. Competitive advantage - analysis aimed at identifying aspects of a competitive advantage in the area concerned;

2.5.2. analysis of demand markets - analysis aimed at identifying the main demand markets towards to develop future sales markets in the area where competitive advantage has been discovered;

2.5.3. diagnostic analysis - analysis aimed at identifying problems along the value chain in the area concerned, and their possible solutions;

2.5.4. SWOT (Strengths and Weaknesses, Opportunities and Threats) analysis – discovering strengths and weaknesses and opportunities and threats of the relevant field.

2.6. When drafting the state program, other methods applied globally may be used in the analysis of the existing situation, along with the methods established by the clause 2.5 of this Regulations, in view of the subject matter of the program

2.7. When drafting the state program, target indicators shall be identified once the problems in the area concerned are identified through the analysis of the existing situation and study of best practices, followed by identification of goals set to achieve these target indicators.

2.8. When defining the goals of the state program, it is necessary to consider the forecast indicators of the country's socio-economic development, as well as the feasibility of measures to be implemented.

2.9. The priority objectives serving to achieve the goals determined in accordance with paragraph 2.7 of this Regulations shall be structured as follows:

2.9.1. justification –  description of key reasons, existing problems, as well as shortcomings prioritizing the respective objective;

2.9.2. actions to be taken – name and description of actions necessary to take as part of the priority objective within the implementation period established by state program;

2.9.3. expected outcome and outcome indicators – predetermined outcome indicators to measure future efficiency of the priority objective and target indicators expected to achieve on these indicators following the implementation of actions under the priority objectives;

2.9.4. Expected risks and actions to neutralize them - main risk factors that may arise in the process of implementation of actions determined under the priority objective and description of actions necessary to take in order to address their impacts;

2.9.5. required funds (where relevant) – amount of the funds necessary for implementation of actions specified under the priority objective;

2.9.6. investment opportunities (where necessary) – business opportunities created for private sector in the process of implementation of actions specified under the priority objective.

2.10. When preparing outcome indicators pursuant to the sub-clause 2.9.3 of this Regulations, it is necessary to determine the base year, baseline indicators and sources to obtain data on these indicators in view of the aspects of each indicator towards “preliminary results”, “intermediate results” and “final results”.

2.11. Where base year indicators are taken as a ground, target indicators shall be determined annually, within the period covered by the state program, with respect to “preliminary results”, at the end of the half-term of the implementation of state program with respect to the “intermediary results” and for conclusion of the state program with respect to the “final results”.

2.12. The action plan of the state program and the main and other implementing agencies of respective actions shall be determined in accordance with the area of focus of the relevant government authorities (institutions) (Appendix 1).

2.13. İnternational organizations, non-governmental organizations, representatives of the public and private sectors, independent experts and other interested parties may be involved in the process of drafting the state program pursuant to this Regulations.

2.14. The government authority (agency) preparing the draft of state program shall draft it in view of the requirements of the Constitutional Law of the Republic of Azerbaijan “On normative legal acts” and the clause 2.12 of the “Statute on guidelines for preparation and adoption of normative legal acts of executive authorities” approved by the Decree No. 772 of August 24, 2002 of the President of the Republic of Azerbaijan, and submit to the Cabinet of Ministers of the Republic of Azerbaijan.

2.15. The draft of state program shall be reviewed by the Cabinet of Ministers of the Azerbaijan Republic and submitted to the President of the Azerbaijan Republic for approval following the requirements of the normative legal acts specified in paragraph 2.14 of this Regulations.

2.16. The state program shall be approved by legal acts of the President of the Republic of Azerbaijan in accordance with paragraph 3 of Article 109 of the Constitution of the Republic of Azerbaijan.

3. Implementation of State Program

3.1. Implementation of the state program shall mean accomplishment of goals set, full and timely implementation of actions provided for in the state program by executors at the expense of sources of funding specified by the state program.

3.2. Coordination of and control over the implementation of actions specified by the state program shall be carried out by the coordinating authority (agency).

3.3. In order to effectively organize the implementation of the state program, a working group composed of representatives of the main and other implementing bodies provided for in the state program shall be established with the lead of the coordinating authority (agency).

3.4. The working group set up in accordance with paragraph 3.3 of this Regulations shall meet at least once a year and exchange views to address major problems encountered in the implementation process.

3.5. Sub-working groups on priority objectives and (or) actions (hereinafter - priority objectives) may be established to organize the implementation of actions provided for in the state program.

3.6. Annual reports on the status and results of the implementation of the actions provided for in the state program shall be prepared by the relevant government authority (institutions) and submitted to the coordinating authority (agency) by January 20 of each year together with the supporting documents.

3.7. The coordinating authority (agency) shall summarize and analyze information submitted in accordance with paragraph 3.6 of this Regulations and submit its report to the President of the Republic of Azerbaijan.

4. Monitoring and evaluation of State Program

4.1. The monitoring and evaluation authority (agency) in charge of monitoring and evaluation of the state program shall be determined at the time of approval of the state program. The coordinating authority (agency) cannot be determined as an authority (agency) in charge of monitoring and evaluation of state programs.

4.2. Local or international experts may be involved in the monitoring and evaluation of the state program.

4.3. The monitoring and evaluation authority (agency) may cooperate with the coordinating authority (agency) during the monitoring and evaluation of the state program, as well as with the main and other implementing authorities (agencies) by relevant priorities.

4.4. The results of the monitoring of the state program shall be reflected in the annual report prepared by the monitoring and evaluation authority (agency).

4.5. Monitoring of the state program shall be carried out in the form of annual monitoring of the status and results of implementation of actions relying on the reports and supporting documents collected by the coordinating authority (agency) and submitted to the monitoring and evaluation authority (agency) in accordance with paragraph 3.6 of this Regulations.

4.6. Monitoring of the implementation status of state programs shall be carried out in accordance with the methodology established by this Regulations with a report drafted on the results of monitoring (Appendices 2 and 3).

4.7. Monitoring of the results of the state program shall rely on comparative analysis of target indicators determined by each outcome indicators of the state program and the actual indicators obtained, with a monitoring report prepared on the results of state program (Appendix 4).

4.8. The reports submitted during the monitoring of the state of implementation and results of the state program shall be analyzed with further clarification made upon the discussions with the representatives of the relevant government authorities (agencies). In this case, additional information and supporting documents on the state of implementation of actions may be requested from the relevant government authorities (agencies).

4.9. Monitoring of the implementation of the state program in accordance with this Regulations shall not exclude inspection in the form of public financial control over effective and proper expenditure of the funds allocated from public budget for the implementation of state program, as well as implementation of state control measures by the Administration of the President of the Republic of Azerbaijan to ensure control over enforcement of legislation and performance discipline, and assessment of the activities of executive authorities and government agencies, and effectiveness of projects they implemented.

4.10. When monitoring the state and results of the implementation of the state program, the performance of each of the government authorities (agencies), main implementing bodies in charge of the implementation of the state program, is also subjected to evaluation.

4.11. During the evaluation of the state program, the actual indicators shall be compared to those prior to the implementation of the program to measure the effectiveness.

4.12. The evaluation of the state program shall follow the following order during the implementation and completion process:

4.12.1. preparation for evaluation of the state program - questions are prepared in view of the comments of coordinating authority (agency) which will allow it to determine the effectiveness, consistency and effectiveness;

4.12.2.    state program evaluation plan – preparation of evaluation plan based on the form determined by this Regulations (Appendix No. 5);

4.12.3.    Preparation of report and recommendation for evaluation of state program – preparation of evaluation report and relevant recommendation paper on evaluation of state program.

4.13. Evaluation of state program shall be carried out once the half of the implementation period is over or the implementation is completed. Evaluation of state programs with implementation period of 3 (three) years or less shall be carried out only after the completion of that program.

4.14. The report on monitoring of the state of implementation and results of the state program shall be submitted once a year, and the report on the evaluation shall be submitted to the President of the Azerbaijan Republic after the expiration of the term established by Item 4.13 of this Regulations.

4.15. The report on the final evaluation of the state program shall be published on the official website of the monitoring and evaluation authority (agency), as well as the coordinating authority (agency) within one month after its submission to the President of the Republic of Azerbaijan.

 

Appendix No 1. to the “Regulations of preparation, implementation,
monitoring and evaluation of state program”

ACTION PLAN of

State Program

 

Name of action	Main implementing authority (agency)	Other implementors	Implementation period**	Outcome indicators
				Preliminary results	Intermediary results	Final results
Priority 1.
Action 1.1. ……
Sub-activity 1.1.2**...
Sub-activity 1.1.2**...
Action 1.2. ...
Action 1.3. …

* Implementation period must be determined at least on annual basis.

** Sub-activities may also be determined for each action

 

Appendix No. 2 to the  “Regulations of preparation, Implementation,

monitoring and evaluation of state program”

METHODOLOGY

On monitoring of the state of implementation of

State Program

1.     The following methods shall be used in collection and processing of data for the purpose of monitoring of the state of implementation of the actions provided for in the state program:

1.1.  analysis of reports and supporting documents submitted by coordinating authority (agency);

1.2.  analysis of documents for the purpose of determining the state of implementation of the action;

1.3.  organizing discussions with relevant government authorities (agencies) or experts;

1.4.  obtaining data of the third parties;

1.5.  organizing on-site inspection of the action

2.     Monitoring of the implementation of the actions provided for in the state program shall be carried out with the following order

2.1.   obtaining and analysis of information and supporting documents

2.1.1. The monitoring and evaluation authority (agency) shall review the work done and the relevant supporting documents submitted for each action, and undertakes preliminary evaluation upon justification based on the following criteria as part of the monitoring of the state of implementation of the actions.

1. actions have been implemented;

2. actions have been partially implemented;

3. actions have not been implemented;

2.2.    organizing discussions with relevant government authorities (agencies)

2.2.1. After the preliminary evaluation of actions as part of the monitoring of the implementation of the actions provided for in the state program, the monitoring and evaluation authority (agency) together with the relevant authorities (agencies) shall discuss the work done and the problems encountered in the implementation process. In this case, the relevant authority (agency) may provide additional information on the state of implementation of actions, as well as discuss the main problems encountered in connection with the implementation of actions and ways to address them;

2.3.    organizing discussions with experts

2.3.1. After completion of discussions with relevant government authorities (agencies) and obtaining supporting documents, the state of implementation of actions, as well as the main issues raised by the relevant government authorities (agencies) in connection with the implementation, proposed solutions and other issues shall be re-discussed with relevant specialists. The monitoring and evaluation authority (agency) may involve international organizations, civil society institutions, non-governmental organizations and other stakeholders in these discussions;

2.4 evaluation of actions based on the information obtained as part of the monitoring of the state of implementation

2.4.1. Upon obtaining, verifying information and organizing discussions with the order specified in paragraphs 2.1 - 2.3 of this methodology, relevant adjustments are made in the preliminary evaluation as part of monitoring of the implementation of actions, and each action shall be evaluated according to the results of the final evaluation:

 

1. action implemented – 1 point;

2. partially implemented action – 0,5 point;

3. action not implemented – 0 point;

2.5.    Evaluation of priority objectives specified by state program and state of implementation of state program

2.5.1. Priority areas established by the state program and evaluation of the state of implementation of the state program in general shall be carried out with the following order:

1. Based on the state of implementation of actions, the specific weight shall be determined on the basis of the ratio of the number of actions evaluated as “implemented”, “partially implemented” and “not implemented” to the total number of actions by each priority objections and the state program;

2. overall state of implementation of priority objectives shall be evaluated using the following formula:

 

(İE+Qİ+İB )/TS*100=İF

 

where:

İE –  total score for implemented actions;

Qİ –  total score for partially implemented actions;

İB –  total score for actions not implemented;

TS –  number of actions by each priority objective;

İF   –  implementation percentage by each priority objective.

Note: If all the actions provided for in the priority objective are implemented, the ratio of the total score for all actions to the total number of actions will be equal to a maximum of 1;

3.      The results obtained in accordance with the overall state of implementation of the priority objective shall be evaluated as follows:

where:     

indicator ranging from 0 through 50 – red (inadmissible);

indicator between 51 – 80 – yellow (admissible);

indicator between 81 –100 – green (satisfactory);

4.       overall evaluation of the state of implementation of state programs shall follow the following formula:

PB/PS*100 = DPQ

where:       

PB     –  total score for priority objectives;

PS      –  number of priority objectives;

DPQ –  implementation percentage of state programs;

5.       results obtained with respective to the overall evaluation of the state of implementation of state programs shall be evaluated as follows:

where:      

indicator between 0– 50 – red (inadmissible);

indicator between 51 – 80 – yellow (admissible);

indicator between 81 – 100 – green (satisfactory);

 

6. The results of the activities of the main implementing authorities (agencies) shall be evaluated as follows, subject to the state of implementation of the actions, using the evaluation of the actions for which each main implementing authority (agency) is responsible within the state program:

 

TB/TS*100= İQF

 

where:    

TB –  total score for actions where authorities (agencies) are the main implementer;

TS –  overall number of actions where authorities (agencies) are the main implementer;

İQF –  results of activities of implementing bodies (agencies) (with percentage)

 

 

7. The results obtained concerning the overall evaluation of the main implementing bodies (agencies) on the actions specified by the state program shall be evaluated as follows:

 

where:                

indicator between 0 – 50 – red (inadmissible);

indicator between 51 – 80 – yellow (admissible);

indicator between 81 – 100 – green (satisfactory).

 

 

Appendix No. 3 to the  “Regulations of preparation, Implementation,

monitoring and evaluation of state program”

REPORT

On monitoring of the state of implementation of

State Program

 

 

State of implementation of actions under priority objectives

Name of  action	Main implementing body(agency)	Other implementors	Implementation period	Information submitted	Overall result
Priority objective 1.
Action 1.1.					implemented partially implemented not implemented
......					implemented partially implemented not implemented

Review of risks:
Risks monitoring aims to reduce the risk occurrence likelihood or scope of impact of risks.