1.Bilateral relations 2.Financial progress 3.Implementation of work plan 2014, results and impact 4.Work plan for Publicity/Swissness and Media monitoring 6.Overall conclusions 2

Economic relations have remained remarkably stable over the past 10 years Switzerland – the 31 st largest Latvian export partner with 0.4% share of total Latvia’s exports. Trend of export volume is stable over the past 5 years Exports of goods to Switzerland mainly are vehicles and transport equipment (45.5%) and wood products (9.9%) Imported goods from Switzerland mainly are chemical and pharmaceutical products (76.5%). Switzerland’s direct investment in Latvia were quite fluctuating with upward trend over past 5 years Switzerland’s direct investment concentrates in the transportation and storage sector and wholesale and retail sector. The structure of investments in recent years has become more diversified Switzerland ranks among top 2 countries for Latvian foreign direct investment over the past 10 years 1.1. Economic cooperation between countries 3

3 high level meetings of the President of the Swiss Confederation and the Swiss Parliament deputies with the Speaker and deputies of the Parliament of Latvia to strengthen bilateral relationships took place in Latvia in 2014 The Memorandum of Cooperation in Vocational Education and Training between Ministry of Education and Science and the Swiss State Secretariat for Education, Research and Innovation was signed in September 2014 in Switzerland to promote the exchange of experience and cooperation of involved parties Authors from Switzerland and Latvia performed the opera “Lysistrata” which was showed in Riga within the European capital of Culture «Riga 2014» as well as in Switzerland 6 choirs from Switzerland participated in the World Choir Games 2014 in Riga Latvian radio choir participated in the music festival in Lucerne The Swiss construction and architecture exhibition "Swiss headings: sustainable practices in the construction of 33 shots« was exposed in Riga during September. The collection reflected the Swiss construction industry key objects created during the last 20 years 4

1.Bilateral relations 2.Financial progress 3.Implementation of work plan 2014, results and impact 4.Work plan for Publicity/Swissness and Media monitoring 6.Overall conclusions 5

Financial progress: Committments

Financial progress: Received and planned reimbursements from Switzerland * In ,7 M CHF already received.

Financial progress: Reimbursements from Switzerland in 2014

1.Bilateral relations 2.Financial progress 3.Implementation of work plan 2014, results and impact 4.Work plan for Publicity/Swissness and Media monitoring 6.Overall conclusions 9

3.1. Youth initiatives project 10 In this reporting period 31 training organized (585 participants) 3 events organized (450 participants) Total to date 17 centers are opened 106 trainings organized (2068 participants) 8 events organized (1100 participants) Main results to be achieved 17 youth initiative centers 160 trainings for youth and persons involved in youth work 13 events for youth and persons involved in youth work

3.2. Fire safety project 11 In this reporting period Development of web game in progress Total to date All systems are installed in less than 1 year At least 6000 children have safer environment Main results to be achieved Fire safety systems installed in 115 general education institutions where children stay overnight «Soft» activities for children about fire safety issues implemented NEW! Fire blankets will be procured and external research on project’s impact and sustainability carried out

3.3. Micro lending programme 12 In this reporting period 213 loans from repayments allocated Main achieved results 800 loans from initial fund Plus 284 loans from repayments 540 grants for loan repayment disbursed* ~2500 people employed in enterprises 2.4 jobs per enterprise *Grant applied when all loan agreement terms are completed and business plan successfully implemented (allocation of new grants were stopped since Aug 2013). Completed 8 months earlier!

3.4. World Bank project 13 In this reporting period 1 IAS & 4 IFRS seminars held 2 study visits for public oversight of auditors and quality assurance to UK and Germany organized Latvian institutions participated in various events about ISA/IFRS organized by CFRR Draft reports (ROSC and Enhancing Relationship between Tax and Financial Reporting) delivered to EA Report on future development options for the public oversight of statutory audits delivered to EA Total to date 8 IFRS seminars (240 participants) 8 IAS seminars (360 participants) 3 study visits public oversight of auditors and quality assurance Draft reports (ROSC and Enhancing Relationship between Tax and Financial Reporting) Main results to be achieved 8 IFRS seminars (240 participants) 8 ISA seminars (360 participants) ROSC report Report on Enhancing Relationship between Tax and Financial Reporting 4 study visits for public oversight of auditors and quality assurance 2 IT systems* Revision of translation of IAS/IFRS *IT System for the Oversight of Sworn Auditors will be carried out by EA in case financing is sufficient. Activities of CFRR prolonged till 30 April 2015!

3.5. Sarkandaugava project 14 In this reporting period 262 tons of floating oil products in groundwater pumped out in Site I/II 53 tons of floating oil products in groundwater pumped out in Site III Total to date 289 tons (32%) of floating oil products in groundwater pumped out in Site I/II 53 tons (10%) of floating oil products in groundwater pumped out in Site III Main results to be achieved Area of ~ 8 ha remediated 900 tons of floating oil products reduced in Site I/II 536 tons of floating oil products reduced in Site III Waterproof barrier installed in Site III

3.6. Scholarship Fund 15 In this reporting period 9 fellows supported Total to date 27 fellows supported (12-18 months – 89%) 15 short visits took place after 9 fellowships* 100% of funding contracted Main results to be achieved 6 months fellowships supported for 43 fellows 58 short visits supported for mentors *For each fellowship automatically 3 short visits are approved. NEW! Additional financing ~ 300 thsd. CHF transferred from Swiss researchers' project

3.7. Swiss researchers’ activities in Latvia 16 In this reporting period 34 fellowships allocated Total to date After 4 open calls: 87 fellowships allocated* 95% of funding contracted ~ 4200 students and academic staff participated in lectures and research activities after 66 fellowships Main results to be achieved At least 45 fellowships for 60 calendar days to Swiss researchers allocated 2000 students and academic staff participated in lectures and research activities *In average fellowships for 7 calendar days.

1.Bilateral relations 2.Financial progress 3.Implementation of work plan 2014, results and impact 4.Work plan for Publicity/Swissness and Media monitoring 6.Overall conclusions 17

Work plan for 2015 (I) Project Tasks 2015 Apr May Jun Jul Aug Sep Oct Nov Dec World Bank project ROSC report delivered by CFRR to MoFX National Conference on Tax and Accounting in Riga to demonstrate and debate alignment practice from other EU countries identified in the Mazars Report organised X Procurement for development of Software system (database) for the oversight of the sworn auditors announced X IT system for Latvian SMEs of sworn auditors developed X Revision of the Latvian translation of all endorsed IAS/IFRS and related Interpretations delivered X Scholarship fund Closing event organised by CRUS X Informative presentations by Fellows presented in the annual Scientists Night event in Riga X Completion of all fellowships X

19 ProjectTasks 2015 Apr May Jun Jul Aug Sep Oct Nov Dec Swiss researchers’ activities Completion of all subprojects X Closing event organised X Final financial audit carried out X Sarkandaugava project Amendments in PA according to the results of the pilot project submitted to SCO X Youth initiatives project 29 trainings and seminars for youth and for persons involved in youth work organised XXXXXXXX Opening of youth centres in Jaunjelgava, Iecava, Riebini, Aizpute and Rezekne Municipalities XX Regional conference in Kurzeme Planning region organised X Regional forum in Riga Planning region organised X 4.2. Work plan for 2015 (II)

Work plan for 2015 (III) ProjectTasks 2015 Apr May Jun Jul Aug Sep Oct Nov Dec Micro lending programme Final financial audit carried out X Brochure on success stories of individual microcredit projects printed X Fire safety project Videos and informative brochure developed regarding web game XX Closing seminar for the representatives of local governments, education institutions and project partner organized X External research about projects results carried out X Final financial audit carried out X Technical Assistance Fund Media monitoring carried out XXXXXXXXX

1.Bilateral relations 2.Financial progress 3.Implementation of work plan 2014, results and impact 4.Work plan for Publicity/Swissness and Media monitoring 6.Overall conclusions 21

Publicyt/Swissness Latvian delegation participated in the International Congress on Vocational and Professional Education and Training Skills for the Future held on 15 to 18 September 2014 in Switzerland. Experience was gained about: vocational and professional education system, collaboration between involved parties and expenses for the education system in Switzerland. The Memorandum of Cooperation was signed.

23 In the kindergarten in Riga the opening event – Microlending programme’s 1000 th beneficiary (micro loan for kitchen’s furnishing).

24 International conference “Support for the youth work development in Latvia and Europe on 5 to 7 November 2014 in Jurmala. 250 participants from 7 countries (Latvia, Switzerland, Lithuania, Estonia, Belgium, Norway and Austria) attended. Experience about national youth policy and NGO’s role in youth work development in Switzerland was delivered. Wide publicity was in the Internet and social media.

Publicty/Swissness - Sarkandaugava project On 28 October 2014 the delegation of Switzerland’s parliament’s deputies visited Sarkandaugava project at the implementation site.

5.5. Publicty/Swissness – Fire safety project 26 An experience exchange visit was organized to project partner in Switzerland in October Know how about raising public awareness of fire safety issues, experience and training for fire safety matters, including e-learning was gained.

27 Swiss researchers’ visits to Latvian universities enhanced bilateral relationships: positive feedback from Swiss researchers received further cooperation developed «outside the project» 5.6. Publicty/Swissness – Swiss researchers’ activities Mr.Carl Olsen, Swiss Business School, lectured in Latvia 4 times.

Media monitoring in 2014 (I) Number of publications/broadcast by months

Media monitoring 2014 (II) Number of publications/broadcasts by projects

Media monitoring 2014 (III) Number of publications/broadcasts by media type (%)

31 Publications/broadcasts by tone (%)

1.Bilateral relations 2.Financial progress 3.Implementation of work plan 2014, results and impact 4.Work plan for Publicity/Swissness and Media monitoring 6.Overall conclusions 32

33 Overall progress – successful because: target indicators of projects are even overreached: Modernization of courts project’s results–for 30% more equipment units installed 12 extra subprojects implemented within the NGO fund for 25% more micro loans allocated within the Microlending programme 5 extra youth centres will be established within the Youth initiatives project Additional activities financed: External research under the NGO fund, Modernization of courts project and Fire safety project Fire safety WEB game and fire blankets Production of video stories and media monitoring within the TAF Good governance: Non-eligible expenditures only 0,4% – well below standard materiality level of 2%; Only one irregularity report during this reporting period day to day communication between involved institutions in all levels 6. Overall conclusions

34 The President of the Swiss Confederation Mr.Didier Burkhalter and the Speaker of the Parliament of Latvia Ms.Solvita Aboltina strengthening bilateral relationships on the high level in Riga on 11 September 2014 Picture from