The Mandatory Stage

The mandatory stage requires the submission of a PDD for the DNA's consideration and approval.

For the purpose of obtaining approval for a project activity under the Clean Development Mechanism project participants shall develop and officially submit to the DNA the following documents both in electronic and printed formats:

• Application letter addressed to the Armenian DNA;
  
  
• A Project Design Document developed in accordance with the requirements and guidelines of the CDM Executive Board under the UNFCCC;
  
  
• A declaration signed by all project participants identifying the responsible person and the form of communication with the DNA;
  
  
• A protocol of stakeholders meeting (Public hearings on the project) and relevant supporting letters from stakeholders;
  
  
• Other available supporting documentation, such as: water use permit, license for construction and operation, power purchase agreement, feasibility study, information on temporary and permanent land acquisition, validation report from DOE, etc.;
  
  
• The Letter of Commitment stating the distribution of any ultimately acquired CERs (if such a decision were taken at the moment of PDD submission).

It must be noted that the Armenian DNA does not require that PDD be validated by the DOE at the moment of the PDD submission to the DNA. The process of project validation may also be initiated after the DNA's approval or carried out simultaneously with the approval process. However, once a project is validated, the copy of a relevant report should be submitted to the DNA for information.

Upon the reception of the PDD, the DNA Secretariat will check the accuracy of both the PDD and the application letter along with the presence of additional documentation on the proposed project. After that, a relevant summary report will be submitted to the DNA.

Having received the report, the DNA directs the electronic and draft copies of the PDD along with the executive summary and other supporting documentation to the Ministry of Labor and Social Security and the Ministry of Trade and Economic Development. Both Ministries will check compatibility of the received project documents with the respective social and economic contribution to sustainable development and get back to the DNA with a written assessment of whether they would support the approval of the project.

At the same time, the DNA will forward the PDD and other supporting documentation for the consideration of sector-specific ministries as well as, agencies, companies and NGOs in order to obtain feedback on the PDD. The mentioned group of relevant parties may include the following organizations depending on project type:

• Ministry of Energy and Natural Resources of Republic of Armenia;
• Ministry of Urban Development of Republic of Armenia;
• Ministry of Agriculture of Republic of Armenia;
• Public Services Regulatory Commission;
• "Environmental Expertise" State Non-commercial Organisation;
• Agency on Water Resource Management;
• Agency on Biological Resources;
• Environmental NGOs;
• Others.

Sector-specific ministries review the project's compliance with the national and regional, policies and strategies. If needed the ministries and agencies may address to the DNA with a request to organise a working panel with the project participants and the DNA representatives to clarify any doubts or questions.

The Expert Group may be asked by the DNA to review the PDD on its technical and environmental aspects. Starting with the initiation of project evaluation, the DNA will post a summary of the submitted PDD (due to its proprietary character) on its web site in order to invite public comments.

All comments received from respondents should be collected and analysed by the Secretariat and a relevant summary evaluation report should be submitted to the DNA. The report will incorporate conclusions developed by the Expert Group as well.

The DNA will evaluate the PDD against its contribution to the country's sustainable development and make the final decision on the project approval taking into consideration the following information:

• The information received and included in the PDD;
• Evaluation report developed by the Secretariat;
• Public comments received during the consultation period.

In case of a positive decision on the PDD, the DNA will issue the Letter of Approval to project participants.

If the submitted PDD receives a negative opinion, the DNA returns the documents to the project participant indicating the rationale for rejection and/or necessary improvements according to the received comments.

A sample Letter of Approval to be issued by the Armenian DNA for a CDM project is shown below.