This project is funded by the EU And implemented by a consortium led by MWH

Contractual obligationsContractual obligations

Estonia-Latvia-RussiaENPI CBC Programme

Project Management and Implementation training

20&21 February 2012

This project is funded by the EU And implemented by a consortium led by MWH

Overview of ENPI CBC legal framework

RF Law on ratification

This project is funded by the EU And implemented by a consortium led by MWH

Your contract outline (1)Your contract outline (1)

• Special conditions

– Article 1 – Purpose

– Article 2 - Implementation period of the Action

– Article 3 - Financing the Action

– Article 4 - Narrative and financial reporting and payment arrangements

– Article 5 - Contact addresses

– Article 6 – Annexes

– Article 7 - Other specific conditions applying to the Action

This project is funded by the EU And implemented by a consortium led by MWH

Your contract outline (2)Your contract outline (2)

• Annexes:

– Annex I: Grant Application Form

– Annex II: General Conditions applicable to European Community-financed grant contracts for external Actions

– Annex III: Budget for the Action

– Annex IV: Contract-award procedures

…

This project is funded by the EU And implemented by a consortium led by MWH

Your contract outline (3)Your contract outline (3)

…

– Annex V: Standard request for payment and financial identification form

– Annex VI: Model narrative and financial report

– Annex VII: Model report of factual findings and terms of reference for an expenditure verification of an EC financed grant contract for external actions

– Annex VIII: Model financial guarantee

This project is funded by the EU And implemented by a consortium led by MWH

What comes first?What comes first?

• The provisions of the Special Conditions take precedence over ALL the Annexes: check art. 7 for additions/derogations!

• Annex II (General Conditions applicable to European Community-financed grant contracts for external Actions) takes precedence over the other annexes

Read first those 2 documents carefully!

This project is funded by the EU And implemented by a consortium led by MWH

General conditions: contents

7

This project is funded by the EU And implemented by a consortium led by MWH

Start of implementation Start of implementation

• Distinguish between:– When the contract takes effect = date of last signature

– When the Action starts = as specified in art. 2.2 of the special conditions:

• The day following that on which the last of the two Parties signs OR

• A later date but not later than 60 days following the signature of the grant contract

• Costs are eligible only after Action start date!– Procedures to award sub-contracts for goods, services or

works may be initiated before but sub-contracts may NOT be concluded by the Beneficiary or its partners before Action start date

This project is funded by the EU And implemented by a consortium led by MWH

Implementation period Implementation period

• Distinguish between:

– When the implementation period ends: XX months after Action start date (art. 2.3 Special conditions)

– When the execution period of the contract ends:• When final payment is paid by JMA OR• In any case at the latest 18 months after the end of

implementation period

• Costs are eligible only during implementation period

– Except costs relating to final reports, expenditure verification and evaluation of the Action

This project is funded by the EU And implemented by a consortium led by MWH

Eligibility time-lineEligibility time-line

This project is funded by the EU And implemented by a consortium led by MWH

Financing the Action Financing the Action

• Budget includes all eligible project costs, not just the ENPI CBC programme contribution

• Double ceiling for JMA financing (art. 3.2 Special Conditions), examples:

Project budget277,778 €

Project actual costs(example 1)321,436 €

Project actual costs(example 2)242,371 €

Grant amount (90%)250,000 €

Actual grant amount250,000 €

Actual grant amount 218,134 €(=242,371*90%)

This project is funded by the EU And implemented by a consortium led by MWH

Reporting on the Action (1) Reporting on the Action (1)

• Interim report (consisting of both narrative and financial section) conforming to the model in Annex VI must

– Accompany every request for payment

– Be submitted no later than 1 month after the end of each six month period even in the absence of request for payment if project >18 months or grant >300.000 EUR

• Final report shall be forwarded no later than 3 months after the implementation period

This project is funded by the EU And implemented by a consortium led by MWH

Reporting on the Action (2) Reporting on the Action (2)

• Reports are submitted in English, but supporting documents may be in original languages

• Report covers the Action as a whole, regardless which part is covered by the grant

• The JMA and the JTS may request additional information at any time and that information must be supplied within 30 days of the request