Although entitled "capacity building", the project views this work component as consisting of the set of activities required to (i) develop a performance monitoring system within MoECI, and (ii) providing effective support for JMG as the responsible body for monitoring and evaluating the sector budget support programme. Although capacity building will be an important element of this work component, it is also important for all other project activities.

The two work components are obviously closely inter-linked, as the JMG has the responsibility of developing and establishing the monitoring system, and coordinating the collection of data in line with the achievement of the set of agreed performance indicators or benchmarks. However, the two work components are shown separately, as the scope of the MoECI monitoring system is potentially larger than that strictly required for monitoring the sector budget support programme, while the second stream also entails matters of a logistical and operational nature that are required to support JMG in effectively executing its functions.

Resting upon outcomes of the Project PCA, further support to the Ministry of energy and coal industry in setting-up and management of monitoring system for the budget support programme as followings:

• Thorough study of existing data collection and reporting system as well as information technology infrastructure in the Ministry of energy and coal industry of Ukraine. Development of practical recommendations on its improvement;

• Design and implementation of a data collection and analysis system aimed at managing information in the Ministry of energy and coal industry of Ukraine, in particular related to the budget support programme implementation. The System should in particular include the conclusions emerging from the monitoring, which should be accessible to all relevant parties and be constantly updated. Providing trainings, if necessary, to the relevant staff of the Ministry of energy and coal industry related to the maintenance of the system.

• Support to the JMG's members on carrying out their tasks (such as collecting and disseminating energy-related information, providing inputs to the JMG's monitoring reports, and generally facilitating activities in relation to the budget support programme);

• Collecting information necessary for the JMG's functioning, e.g. relevant legislation and regulatory guidance (including EU Directives, Regulations and other documents), energy market developments, relevant stakeholders, best practices and state of the art technologies, other information as identified on the JMG's meetings;

• Assistance to the Ministry of energy and coal industry in preparing and organising of the JMG meeting from logistical point of view. The Consultant is also expected to assist the Ministry in drafting the minutes/reports following the JMG meetings;

• Preparing and organising, as necessary, seminars, training sessions, thematic discussions, Working Group meetings, based on the needs identified by the co-chairmen of the JMG;

• Facilitating contacts and exchanges of views between stakeholders, such as relevant representatives of authorities, donors and lending institutions;

• Arranging for translation of documents into Ukrainian and/or English, such as important pieces of EU legislation;

• Assistance to the Ministry of energy and coal industry in the development of programme for the use of budget support funds.