In June 2011, the European Commission released EUR 5 million from the AP 2009 Sector Policy Programme in support of vocational education and training (VET) in Armenia. The expected outcome is an overall modernisation of VET, which would have a direct positive impact on the labour market and employment in the country. The initiative is part of long term EU efforts to boost reform on VET in Armenia. The European Union has been actively supporting reforms in education in Armenia over the last 8 years with a clear focus on Vocational Education and Training (VET). Shortly after Armenia joined the European Neighbourhood Policy in 2006, the Government of Armenia and the European Commission have agreed to focus the 2007 Budget Support assistance of the European Union to Armenia on further reforms of the VET sector. The overall objective of AP2009 Sector Policy Programme "Continuation of vocational education and training (VET) reform and development of an employment strategy" is to continue to provide support through increasing the quality of VET sector in order to make it more relevant to the needs of the labour market and of the individuals. Key elements of the government sector programme as defined in the VET MPP Action Plan covering the years from 2009-2011, are the following: (i) introduction of competency based vocational education, (ii) modernisation of quality monitoring mechanisms, (iii) creation of technical support and quality assurance infrastructure, (iv) improvement of cost efficiency and educational outcomes, (v) optimisation of VET financing, (vi) building of national capacity for VET modernisation, implementation and monitoring. Key results of the programme are: 1) Improved governance of VET reforms; 2) Increased importance of employment strategies; 3) Improved conditions for delivery of VET; 4) More efficient VET system in line with requirements of Labour Market; 5) Improved targeting of active employment measures. The programme has an overall budget of € 15M, out of which € 1M is earmarked for the Technical Assistance component. The € 14M component of budget support is implemented against satisfactory fulfilment of policy conditions identified and agreed upon by the Commission and the Government of Armenia. Instalments are payable to the Armenian State budget subject to fulfilment of policy conditions. The first fixed tranche of € 5M was released to the state budget in June 2011 upon fulfilment of General Conditions and one specific pre-condition, as well as signature of Financing Agreement in November 2010. Disbursement of Second and Third tranches of € 4M and € 5M respectively is expected in first semesters of FY 2012 and 2013 upon fulfilment of Specific Conditions attached to each tranche. Main implementing partners under this Programme are the Ministry of Education and Science, Ministry of Labour and Social Affairs, Ministry of Finance, Ministry of Economy as well as social partners.

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