Upload
others
View
18
Download
0
Embed Size (px)
Citation preview
Bilateral Guideline
EEA and Norwegian Financial Mechanisms 2014 – 2021
Adopted by the Financial Mechanism Committee on 9 February 2017
2
09 February 2017
Contents
1 Introduction ........................................................................................... 4
1.1 Definition of strengthened bilateral relations ............................................ 4
1.2 EEA relations ....................................................................................... 5
2 A strategic approach to bilateral relations ............................................. 5
3 Fund for bilateral relations ..................................................................... 6
3.1 The aim of the fund .............................................................................. 7
3.2 Organisational management of funds for bilateral relations ....................... 8
3.2.1 Joint Committee for Bilateral Funds .................................................. 8
3.2.2 Bilateral Fund Agreement ................................................................ 9
3.2.3 Work Plan ................................................................................... 10
3.2.4 How does it work: From MoU to JCBF and Work Plan ........................ 11
3.2.5 Eligibility of expenditures and disbursement of funds ........................ 12
3.3 Funds managed by the National Focal Point ........................................... 13
3.4 Funds managed by the Programme Operators ....................................... 14
3.4.1 Allocations to programmes ............................................................ 14
3.4.2 Programme development phase ..................................................... 15
3.4.3 Programme implementation phase ................................................. 16
4 Donor Programme partnerships ........................................................... 17
4.1 Donor Programme Partners (DPPs) ....................................................... 18
4.1.1 Several Donor Programme Partners in one programme ..................... 18
4.2 Role of the DPP in the programme preparation phase ............................. 18
4.3 Role of the DPP in the programme implementation phase ....................... 20
4.4 DPP communication responsibilities ...................................................... 21
4.5 DPP framework agreement .................................................................. 21
3
4.5.1 DPPs advising in other programmes ............................................... 22
4.6 DPPs as project partners ..................................................................... 22
4.7 The Cooperation Committee ................................................................ 23
4.7.1 Establishing the Cooperation Committee ......................................... 23
5 Project partnership .............................................................................. 24
5.1 Donor project partners ....................................................................... 25
5.2 Facilitation of donor project partnerships .............................................. 25
5.3 Project partnership agreements ........................................................... 26
6 Bilateral reporting ................................................................................ 27
6.1 Strategic Report from the NFP ............................................................. 27
6.2 Reporting by the PO ........................................................................... 28
6.3 Annual progress reports from the DPPs ................................................. 28
6.4 Reporting on bilateral initiatives ........................................................... 28
6.5 External reviews ................................................................................ 29
6.6 General rules on financial reporting and verification and certification of
expenditure ................................................................................................ 29
6.6.1 Proof of expenditure ..................................................................... 29
6.6.2 Verification and certification of expenditure ..................................... 30
6.6.3 Financial reporting under the fund for bilateral relations ................... 31
6.7 Procurement rules .............................................................................. 31
7 Legal framework .................................................................................. 32
8 Annexes ............................................................................................... 32
4
1 Introduction
The EEA and Norwegian Financial Mechanisms have two overall objectives of equal
importance;
contributing to the reduction of economic and social disparities in the European
Economic Area: and
strengthening bilateral relations between Iceland, Liechtenstein and Norway
(hereafter referred to as “the Donor States”), and each of the 15 Beneficiary
States (hereinafter the “bilateral objective”).
All programmes, projects and bilateral fund activities shall contribute to these two
overall objectives.
To facilitate bilateral relations, the EEA and Norwegian Financial Mechanisms are
implemented in partnership with Donor State entities at programme level, project level
and under the fund for bilateral relations.
With reference to the Regulations on the implementation of the EEA and Norwegian
Financial Mechanisms 2014-2021 (hereafter referred to as “the Regulations”), the
objective of the Guideline is to provide relevant stakeholders with an overview and
clarification of requirements concerning the strengthening of bilateral relations, and to
provide guidance and suggestions for how to best implement these requirements in
practice. The Guideline addresses relevant processes within programmes, projects and
the fund for bilateral relations and should be of relevance to the National Focal Points,
Programme Operators and Donor Programme Partners.
1.1 Definition of strengthened bilateral relations
Bilateral relations between countries refer to political, economic, cultural and historical
ties, as well as people to people contact. Strong bilateral relations are characterised
by cooperation between institutions and persons at administrative and political level
as well as in the private sector, academia and civil society. Other elements of bilateral
relations include trade and investment, cultural cooperation, as well as general
knowledge, understanding and public awareness about the other country and the ties
existing between them.
The bonds between the countries involved in the EEA and Norwegian Financial
Mechanisms are already strong due to a common history and culture, shared values
and geographical closeness.
In the context of the EEA and Norwegian Financial Mechanisms, the operational
definition of ‘strengthened bilateral relations’ is:
Enhanced cooperation and improved mutual knowledge and
understanding between Donor and Beneficiary States.
5
1.2 EEA relations
The Agreement on the European Economic Area (EEA) is the cornerstone of relations
between the three EEA EFTA states - Iceland, Liechtenstein and Norway - and the EU.
It brings together the 28 EU member states and the three EEA EFTA states in the single
market governed by common basic rules.
Bilateral relations between the EEA EFTA states and the EU member states are
characterised by the fact that the EEA Agreement gives Iceland, Liechtenstein and
Norway the same rights and obligations as EU member states and their citizens when
it comes to trade, investments, banking and insurance, and buying and selling
services. EEA citizens also have the same right to work, study and live in the 31
countries of the European Economic Area. A number of other fields outside the four
freedoms are also covered.
Moreover, the EEA Agreement includes a common goal of reducing social and economic
disparities in Europe. Through the EEA and Norwegian Financial Mechanisms, Iceland,
Liechtenstein and Norway contribute to reducing social and economic disparities in
Europe and to strengthening the bilateral relations between the three Donor States
and the 15 Beneficiary States.
The EEA and Norwegian Financial Mechanisms seek to increase general awareness and
knowledge of the EEA framework, and the rights and obligations that follow. Familiarity
with the EEA Agreement is considered an important part of bilateral relations between
the Donor States and the Beneficiary States.
2 A strategic approach to bilateral relations
The objective of strengthening bilateral relations is of equal importance as the
objective of reducing social and economic disparities. To ensure both sustainability and
flexibility, the bilateral tools includes:
institutional cooperation at programme level;
donor project partnerships; and
bilateral funds with the flexibility needed to address current issues of bilateral
interest.
A strategic approach brings together relevant stakeholders in both Donor and
Beneficiary States. Through cooperation between institutions in the Donor and
Beneficiary States, bilaterally relevant programmes are developed, enabling the
exchange of knowledge and expertise through long-term institutional cooperation.
Such cooperation also facilitates partnerships at project level.
While the National Focal Point (NFP) and Programme Operators (POs) are instrumental
in achieving the bilateral objective, a Joint Committee for Bilateral Funds is introduced
in each Beneficiary State to oversee the strategic approach to the bilateral objective
6
at national level by bringing together the most relevant actors for bilateral cooperation,
including the respective ministries of foreign affairs and the NFP.
All activities funded by the EEA and Norwegian Financial Mechanisms shall follow a
results based management approach. As strengthening bilateral relations between the
EEA EFTA states Iceland, Liechtenstein and Norway and the 15 Beneficiary States is
one of the two overall objectives under the EEA and Norwegian Financial Mechanisms
2014-2021, the Beneficiary States are expected to measure and report on the
achievement of this objective. This includes activities at programme-, project-and
bilateral fund-level. In practice, applying a results-based approach to bilateral
cooperation entails setting an aim, deciding on the measure to achieve the aim, and
measuring progress and adjusting as necessary to achieve the desired results1.
Bilateral cooperation is facilitated and supported by the EEA and Norwegian Financial
Mechanisms through programmes, projects and bilateral funds (activities). The
expected results from such cooperation are: tangible deliverables (outputs), and (short
and medium term) effects of these outputs on the direct target groups (outcomes),
which contribute to strengthened bilateral relations (impact).
Illustration 1: Results-chain for bilateral cooperation
3 Fund for bilateral relations
Each Beneficiary State shall set aside a minimum of 2% of its total allocation for a fund
to contribute to the objective of strengthening bilateral relations between the Donor
States and the Beneficiary State. The NFP shall be responsible for the use of the fund
for bilateral relations. Parts of the fund shall be made available to the POs either
through allocations set in the MoU or through allocations made by the Joint Committee
for Bilateral Funds based on assessments of expressions of interest from the POs, to
1 For more information on results based management please refer to the “Results Guideline”
Activities
•Programme activities
•Project activities
•Bilateral fund activities
Outputs
•Products, capital goods and services delivered by a bilateral intervention
Outcomes
•Enhanced cooperation between DS and BS entities
Impact
•Strenghtened bilateral relations
7
finance initiatives organised in the framework of the programmes. Other parts of the
fund will be managed by the NFP to finance initiatives beyond the programmes.
Illustration 2: Distribution of funds for bilateral relations
*The funds allocated to calls or predefined initiatives beyond the programmes (yellow boxes) are managed
by the NFP, while the funds allocated to the programmes (blue boxes) are managed by the PO.
3.1 The aim of the fund
By providing a flexible source of funding for initiatives of mutual interest, the fund for
bilateral relations is an instrument to strengthen the cooperation and increase mutual
knowledge and understanding between the Donor and Beneficiary States. Both Donor
State entities and entities in the Beneficiary State shall be eligible as potential
promoters or partners under the fund.
As is clear from Article 8.8 of the Regulations, the range of activities eligible for support
under the fund for bilateral relations is broad. However, the NFP and POs must in their
planning and allocation of the funds strive to finance activities that have a clear
bilateral profile and serve the purpose of strengthening bilateral relations between the
Donor and Beneficiary States. As an example, in an event supported under the fund
for bilateral relations, having attendants from Donor State entities at the actual event
is not considered sufficient to define it as ‘bilateral’. The event must reflect the bilateral
ambition throughout the event programme, e.g. through a focus on exchanging
relevant experiences between the Donor and Beneficiary State. Both promoters and
partners shall be actively involved in planning and organising the activity.
8
The flexibility of funds for bilateral relations is ensured through a longer eligibility
period than for programmes and projects2, as well as by opening up for activities of
smaller scale that are subject to a simplified approval process.
The success of the funds for bilateral relations is dependent on relevant entities being
aware of the availability of funding opportunities. Information on the existence and
the procedures of the fund shall therefore be accessible to all relevant stakeholders,
including to Donor State entities. For further details, please consult the Information
and Communication Requirements (Annex 3 to the Regulations).
3.2 Organisational management of funds for bilateral
relations
In order to manage the funds in line with the strategic approach described under
Chapter 2 of this Guideline, the Regulation establishes a set of organisational
instruments to enhance the implementation of the funds: The Joint Committee for
Bilateral Funds (JCBF), the Bilateral Fund Agreement, and the Work Plan.
The NFP is responsible for the fund for bilateral relations, although the adoption of the
Work Plan and the review of progress shall be a joint responsibility of the Donor and
Beneficiary States. The organisation and procedures for the fund for bilateral relations
shall be included in the detailed description of the management and control systems
which the NFP shall submit to the Donors within six months of the date of the last
signature of the MoU.
3.2.1 Joint Committee for Bilateral Funds
The NFP shall establish the JCBF as soon as possible after the signature of the MoU.
The JCBF has a general responsibility for overseeing the progress towards reaching
the objective of strengthened bilateral relations through the Grants. At the same time,
the JCBF has a direct role in allocating funds for bilateral relations to programmes of
bilateral interest, as well as identifying initiatives beyond the programmes. Through
the JCBF, the Donor and Beneficiary States will jointly establish bilateral ambitions,
identify priority areas for bilateral cooperation, and discuss how these best can be
addressed through concrete measures and activities financed through the fund for
bilateral relations. The ambitions, priority areas, measures and activities agreed in the
JCBF should be included in the Work Plan to be adopted by the Committee.
The tasks of the JCBF shall, inter alia, include:
a) discussing matters of bilateral interests, identifying initiatives and reviewing
the overall progress towards reaching the objective of strengthened bilateral
relations;
2 The final date of eligibility for support under the fund for bilateral relations is set to 30 April 2025. The
final date of eligibility of programme management cost is set to 31 December 2024, while the final date of eligibility of project cost is set to 30 April 2024.
9
b) adopting the Work Plan for the fund for bilateral relations to be discussed at
the annual meeting; and
c) identifying and allocating bilateral funds to programmes of bilateral interest.
The JCBF shall be chaired by the NFP and composed of representatives from the Donor
States and from the Beneficiary States, including the Ministries of Foreign Affairs both
from the three Donor States and the Beneficiary State. Additional participation from
other Donor or Beneficiary State entities may be foreseen, either as permanent
members or on a temporary basis. The composition, role and functioning of the JCBF
shall be further defined in the Bilateral Fund Agreement between the Donors and the
NFP.
The NFP shall, within two months of the last signature of whichever of the two MoUs
is signed last, submit to the Donors a proposal on the composition, role and functioning
of the JCBF, to be agreed in the Bilateral Fund Agreement.
The JCBF shall meet at least once a year, prior to the annual meeting, but may meet
more frequently. The NFP is responsible for preparing the draft agenda which shall be
sent to the members of the JCBF and the FMO for comments at least two weeks before
the meeting. Other relevant meeting documents should also be provided to the
members of the JCBF in due time prior to the meetings of the JCBF.
Draft minutes from the meetings shall be distributed to the members of the JCBF and
the FMO no later than two weeks after the meeting. The agreed minutes shall be
distributed to the members of the JCBF and the FMO no later than four weeks after
the meeting.
The Donor States may be represented through their Embassies or any other
representative appointed by the respective Ministry of Foreign Affairs. If requested by
the Donors, possibilities for participation through video link or phone conferencing
should be accommodated. The NFP shall be provided with the contact details of the
donor representatives for the JCBF by the FMO. The rules of procedure for the JCBF
shall ensure that decisions can be made even if not all Donor States participate in a
meeting. Decisions from the JCBF shall be taken by consensus. In case no consensus
can be reached, the decision shall be taken by the Financial Mechanism Committee.
As part of its responsibility in reviewing the overall progress towards reaching the
objective of strengthened bilateral relations, the JCBF should be invited to comment
on the bilateral relations section of the Strategic Report before the NFP submits the
report to the Donors.
3.2.2 Bilateral Fund Agreement
The fund for bilateral relations is regulated by a separate Agreement between the
Donors and the National Focal Point; the Bilateral Fund Agreement. For those
Beneficiary States benefitting from both the EEA and the Norwegian Financial
Mechanisms, there is one Agreement covering both mechanisms. The Bilateral Fund
Agreement sets out the size and objective of the fund. The Agreement also describes
10
the role, functioning and composition of the JCBF and the procedures and requirements
for the Work Plan and allocation of the funds.
The Bilateral Fund Agreement template is provided in Annex 4 to the Regulations. The
procedures for amending the Agreement are the same as for Programme Agreements
(Article 6.9 of the Regulations).
3.2.3 Work Plan
The NFP shall, in consultation with the Donors, prepare a draft Work Plan describing
the proposed implementation and activities for the duration of the fund. The Work Plan
shall as a minimum include a brief description of the implementation of the fund for
bilateral relations, major activities to be organised under the fund, and programmes
of bilateral interest. The Work Plan shall include information on any amounts allocated
to programmes, including any amounts allocated in the MoU.
Whereas the Bilateral Fund Agreement is a fixed document regulating the rights and
obligations of the parties, the Work Plan should be a more operational document
subject to update.
The short description of the implementation shall outline how the allocation of the
funds will be made, including how selection of activities for funding will be made. The
JCBF may decide to allocate a set amount to be re-granted by the NFP, e.g. for travel
support or small scale activities. The implementation of the fund shall be based on the
principles of transparency, accountability and sound financial management, and should
correspond to the intention of the fund as a simple and flexible source of financing.
The principle of proportionality applies, meaning that the management and control
should be proportional to the size of the fund for bilateral relation.
Relevant questions for the preparation of the Work Plan will be:
Are there on-going initiatives or upcoming events of importance for bilateral
relations to build on?
Are there areas of common bilateral interest highlighted in the MoU or identified
by the JCBF that should be prioritised?
Are there areas of common interest at political level and European level which
are relevant for strengthening bilateral relations?
Could initiatives be tied to major events in the Donor or Beneficiary State (state
visits, international chairmanships, EU Presidencies, European Capitals of
Culture, etc.)?
How can the funds best be used to promote and facilitate partnership projects
under the programmes?
The ambitions and priorities might vary from country to country, depending on:
the size of the fund;
the history of cooperation;
areas of common interest with the Donor States;
11
Whereas for some Beneficiary States, the most effective and strategic use of the funds
may be identifying a few targeted activities, in larger Beneficiary States calls for
proposals/interest could be envisaged.
The Work Plan should be a broad outline of key issues and priorities, possible sectors
or areas of intervention. In line with the results-based management framework, the
emphasis should be on the results to be achieved. The Work Plan is not intended to
outline in detail all activities that might be carried out over the whole period of the
Financial Mechanisms. It is therefore advisable to retain budget for measures and
activities to be identified at a later stage. The approach will depend on the size of the
fund and other factors, but it is generally suggested that the first Work Plan sets out
the plans for the first half of the implementation of the Financial Mechanisms, reserving
parts of the fund for activities and measures in the second half to be agreed on in due
time. There is no need for extensive information about each activity planned, but the
Work Plan should include a list of major activities to be organised. A template for the
Work Plan is attached as Annex 3 to this Guideline.
3.2.4 How does it work: From MoU to JCBF and Work Plan
Following the signature of the MoU the Beneficiary State and the Donor States should
meet to discuss the next steps regarding the fund for bilateral relations. It is
recommended that a first meeting is organised as soon as possible after the signature
of the MoU, including the Donors, the FMO, the NFP and the Ministry of Foreign Affairs
of the Beneficiary State. The first meeting is an occasion to discuss the composition
role and functioning of the JCBF, on which the NFP within two months of the last
signature of the MoU shall submit a proposal. Moreover, the first meeting serves to
give input to the NFP which shall prepare the draft Work Plan in consultation with the
Donors.
Based on the input provided in the first meeting, the NFP may start drafting the Work
Plan, in parallel with submitting the proposal on the composition, role and functioning
of the JCBF to the Donors.
Following the submission of the proposal regarding the JCBF, the FMO will prepare the
Bilateral Fund Agreement to be signed by the Donors and the NFP.
Once the NFP has prepared the draft Work Plan, it shall be submitted to the members
of the JCBF and the FMO for comments at least four weeks prior to the adoption of the
Work Plan by the JCBF. Implementation of the Work Plan may start once it has been
adopted by the JCBF.
The adopted Work Plan will be discussed at the Annual Meeting, and any comments to
the Work Plan made at the Annual Meeting shall be taken into account by the JCBF.
It is suggested that the Work Plan is updated as needed allowing for some long-term
planning, while securing flexibility to adjust the plan based on experiences and changes
in priorities. The need to update the Work Plan may vary from one Beneficiary State
to another, depending among other things on the size of the allocation.
12
Modifications to the Work Plan shall be prepared by the NFP, submitted to the members
of the JCBF and the FMO for comments at least four weeks prior adoption by the JCBF,
and reported on at the Annual Meeting.
Illustration 3: From MoU to JCBF and Work Plan:
3.2.5 Eligibility of expenditures and disbursement of funds
The eligibility of expenditures to be covered by the funds for bilateral relations is set
out in Article 8.8 of the Regulations. The rules governing this fund can be found in
Articles 4.6 and 4.7 of the Regulations and in the Bilateral Fund Agreement.
The general principles on the eligibility of expenditures outlined in Article 8.2 of the
Regulations also apply to the fund for bilateral relations. The first date of eligibility for
the fund for bilateral relations is the date of the last signature of the MoU with the
respective Beneficiary State. If support is received under both the EEA and Norwegian
Financial Mechanisms, the first date of eligibility shall be the date of the last signature
of whichever MoU is signed first. The final date of eligibility for the fund for bilateral
relations shall be 30 April 2025.
The disbursement of funds for bilateral relations to the NFP will only take place after
the Bilateral Fund Agreement has been signed, unless otherwise agreed on a case-by-
case basis. Payment will not be made until the Donors receive the detailed description
of the management and control systems referred to in Article 5.7 of the Regulations,
and determine that it meets the minimum requirements.
Costs incurred by the NFP related to the preparation, evaluation, financial flow and
monitoring of the fund for bilateral relations may be eligible costs for Technical
Assistance provided that the expenditure is proportionate and necessary (Regulations
Art. 8.11.2 (a)). For the PO, expenditure related to the strengthening of bilateral
relations are eligible as programme management costs provided that the expenditure
is proportionate and necessary (Regulations Art. 8.10.4. (m)).
As activities to strengthen bilateral relations can be supported under both programme
management costs and the fund for bilateral relations, the most appropriate funding
source needs to be assessed on a case-by-case basis, depending on the national
13
context and the size of the grants and various funds. The flexibility built into the
Regulations is meant to make sure
that good activities to strengthen
bilateral relations are not hampered
by lack of funding possibilities and
that funding is available at an early
stage.
3.3 Funds managed by
the National Focal
Point
While each Beneficiary State has one
fund for bilateral relations, initiatives
financed by the fund can be managed
by the NFP or the PO. In most
Beneficiary States, the majority of
the fund for bilateral relations is
expected to be allocated to
programmes and to be managed by
the PO. However, an important
feature of the fund for bilateral
relations is to make available funding
for initiatives beyond the scope of the
programmes agreed in the MoU. Such
initiatives may be related to bilateral
cooperation at national, local or
regional level. As illustrated in yellow
in illustration 2 on page 7, funding for
these initiatives are allocated by the
JCBF, and managed by the NFP either
through calls or by pre-defining
initiatives to be carried out by the
NFP or other entities. Pre-defined
initiatives are often related to current
issues of bilateral interest. As the
need for such activities may arise on
short notice, it is important that the
management of the funds has the
flexibility required to address
pressing issues of bilateral priority.
Initiatives beyond the scope of the
programmes could provide a platform
Best practice:
Norwegian-Estonian
e-Governance Initiative
Norway and Estonia are working
together to support countries in the
Eastern Partnership group’s (Ukraine,
Moldova, Belarus, Georgia, Azerbaijan,
Armenia) development towards
democratic, transparent, efficient and
innovative governance and economy.
Estonia is focusing on e-governance
support, while Norway has put a lot of
efforts in supporting innovative new
economic models that support start-ups
and SMEs.
Following a workshop organised by the
Norwegian Embassy in Tallinn, Estonian
and Norwegian partners received
support from the Bilateral Fund to carry
out a feasibility study on e-Governance.
The objectives of the study were:
to develop future collaboration
between partners in Norway
and Estonia within e-
Government, including cyber
security
to conclude on a common
platform for a Norwegian-
Estonian e-Government lab
incubator
to conclude on further
replicable collaboration models
in development cooperation
regions
The feasibility study is a good example
of how the funds for bilateral relations
can serve to consolidate networks or
partnerships in an early phase to
elaborate on the respective partners’
expertise and prepare the ground for
further collaboration beyond the funds
for bilateral relations.
14
for increased political, cultural, economic, and academic relations in a broad sense.
Examples of activities that could be carried out under funds for bilateral relations
managed by the NFP include:
matchmaking events not tied to one particular programme
technical cooperation and exchange of experts
secondments and internships
capacity building and short term training
workshops and seminars on topics of common interest
study tours and visits
data collection, reports, studies and publications
campaigns, exhibitions and promotional material
This list is non-exhaustive and is meant as an example of possible activities.
3.4 Funds managed by the Programme Operators
Besides the funds managed by the National Focal Point, the NFP shall in accordance
with Article 4.7 of the Regulations ensure the availability and timely disbursement of
funds for bilateral relations upon request from the POs.
The allocation of funds for bilateral relations to POs shall be based on
any allocation set in the MoU; as well as
any allocation made by the JCBF.
Any allocation to programmes will usually not be earmarked to specific activities, but
rather be granted as block amounts for the PO to manage.
Decisions on the management and use of funds for bilateral relations allocated to
programmes implemented in cooperation with DPPs shall be made by consensus
between the PO and the DPP in the Cooperation Committee.
In donor partnership programmes, the PO should take full advantage of the DPPs and
involve them in planning the use of the funds for bilateral relations, including providing
input to the call for expression of interest. If the programme has no DPP, the PO might
consult and seek advice from Donor State embassies, other relevant Donor State
entities and the FMO. The optimal use of the funds for bilateral relations will vary from
one programme to another based on the specificities of each programme.
3.4.1 Allocations to programmes
a) Allocations made in the MoU
The Donors and Beneficiary State may agree on allocations from the fund for bilateral
relations to programmes in the MoU. Such allocations will normally be minimum
allocations, and the programmes would still have the option to request additional funds
from the JCBF through an expression of interest (see section b) below).
15
Any allocation included in the MoU is not subject to any further approval by the JCBF
or NFP. Article 4.7 of the Regulations states that the NFP shall as appropriate ensure
the availability and timely disbursement of funds for bilateral relations upon request
from the POs. It is not foreseen that the POs will require the full amounts allocated in
the MoU during the programme development phase and it will be for the NFP and POs
to agree on what is considered appropriate to cover the PO’s needs in this period.
According to Article 4.6.3 of the Regulations, advance payments of the funds for
bilateral relations from the donors to the NFP shall be made upon the signature of the
Bilateral Fund Agreement. Likewise, Article 5.7.5 states that prior to disbursing the
first payment to the fund for bilateral relations, the donors shall determine whether
the detailed description of the management and control system submitted meets the
minimum requirements.
The bilateral ambitions and the use of the funds for bilateral relations allocated through
the MoU shall be described in the Concept Note, and agreed in the Cooperation
Committee.
b) Expression of interest
Allocations from the fund for bilateral relations to POs beyond those made in the MoU
shall be based on expressions of interest submitted by the PO. In the expression of
interest form, annexed to this guideline, the PO shall outline how it intends to use and
manage the funds requested. Following assessment, the JCBF allocates funds to
programmes of bilateral interest, and the funds shall be managed in accordance with
any recommendation from the JCBF.
3.4.2 Programme development phase
During the programme development phase funds for bilateral relations can be used by
Programme Operators to strengthen the bilateral dimension of the programmes and
prepare the ground for future cooperation.
For programmes where an allocation from the fund for bilateral relations is
specified in the MoU, the NFP shall, upon request from the PO, ensure
disbursement of an amount not exceeding the specified allocation.
For programmes where an allocation from the fund for bilateral relations is not
specified in the MoU, the NFP shall, upon request from the PO, ensure
disbursement of an amount not exceeding € 50,0003.
In case the NFP is prevented from making the above funding available, the PO may,
in accordance with Article 4.6.4 of the Regulations, request an amount not exceeding
3 Any disbursement of up to €50,000 is not subject to any further approval by the JCBF.
16
€ 50,000 as an advance payment directly from the Donors. Such payment shall be
made in agreement with the NFP, following the designation of the PO4.
For programmes where an
allocation from the fund for
bilateral relations is specified in
the MoU, any funds for bilateral
relations disbursed during the
programme development phase in
accordance with Article 4.6.4 of
the Regulations, shall be
considered included in the MoU
allocation.
Examples of activities that can be
carried out at an early stage
before the approval of the Work
Plan and the programme are:
study tours to the Donor
States for POs, potential
project promoters and
partners to get input to the
programme development;
feasibility studies for
bilateral cooperation and
expert advice on how to
design the programme to
integrate bilateral aspects;
meetings with Donor State entities defined as potential partners in pre-defined
projects;
bilateral stakeholder consultations;
promotional activities to attract potential project promoters and partners for
partnership projects.
The bilateral ambitions and the use of the bilateral funds should be agreed in the
Cooperation Committee, where applicable.
3.4.3 Programme implementation phase
Funds for bilateral relations allocated to programmes should strengthen the bilateral
profile of the programme and facilitate partnerships at project level. These funds are
particularly relevant for, but not limited to:
search for partners for donor partnership projects prior to or during the
preparation of a project application;
4 A template for requesting these funds is attached as Annex 5 to this Guideline.
Illustration 4: Disbursement of bilateral
funds in programme development phase
17
development of such partnerships and the joint preparation of an application
for a donor partnership project
Both potential project promoters and potential donor project partners should be able
to apply for funds. Reimbursement of costs related to the preparatory activity shall not
be conditional upon eventual submission or approval of a project application.
The PO can choose to establish a ‘seed money facility’ open for applications, either
through open calls for proposals at specific points of time, e.g. some months prior to
the main calls for proposals, or allow for applications on a continuous basis, depending
on the specificities of each programme. The seed money can for example be used for
travel and meeting costs for potential partners or any costs related to the development
of the project application or development of the partnership.
Alternatively, the PO could initiate and organise events and meetings to promote donor
partnership projects, for instance through outreach and match-making seminars for
potential project promoters and potential donor project partners, to allow them to
explore cooperation possibilities.
Throughout the programme implementation period, the PO may also use the funds for
bilateral relations for other types of activities to strengthen bilateral relations between
the Donor States and Beneficiary State. Such activities will either be implemented by
the PO itself, by project promoters, donor project partners, or by other relevant
stakeholders. In accordance with Article 8.8 of the Regulations, the following activities
would be eligible for bilateral funds:
networking, exchange, sharing and transfer of knowledge, technology, experience
and best practice between entities in Beneficiary States and entities in Donor States
and/or international organisations, and
activities aiming at strengthening cooperation and exchanging experiences and best
practices between the POs and similar entities within the Beneficiary States and
Donor States, as well as international organisations, provided at least one entity
within the Donor States is involved in the activity
The PO may decide to distribute such funds through calls for proposals, simple
expression of interest or by ‘pre-defining’ activities.
4 Donor Programme partnerships
All programmes of specific bilateral interest will be implemented in cooperation
between Donor and Beneficiary State entities. The programmes developed and
implemented in cooperation with one or more Donor Programme Partners (DPPs) are
referred to as donor partnership programmes. In such programmes, it is still the
Programme Operator (PO) who is responsible for preparing and implementing the
programme, including facilitating bilateral cooperation. Donor partnership
programmes aim to facilitate networking, exchange, sharing and transfer of
18
knowledge, technology, experience and good practices between public entities in the
Donor States (DPPs) and the Beneficiary States. The cooperation shall be mutually
beneficial to the involved partners, and the partnership is expected to have a positive
impact on the programme.
4.1 Donor Programme Partners (DPPs)
A DPP is usually a public entity in one of the Donor States with national mandates
within its respective fields and with extensive international experience advising on the
preparation and implementation of a programme. The DPPs are considered
instrumental for achieving the objective of strengthening bilateral relations. At the
same time, DPPs constitute a valuable resource for the PO as strategic partners on
programme level. The DPPs contribute directly to the objective of reducing economic
and social disparities by bringing sector experience and competence to the table,
alongside their understanding and knowledge of the Donor States’ priorities. As
concerns issues related to the interpretation of the Regulations and other parts of the
legal framework of the Mechanisms, the PO and the DPP are invited to refer to the
FMO.
Donor partnership programmes are identified as such in the Memoranda of
Understanding (MoU) or later through an exchange of letters between the Donor
State(s) and the NFP.
4.1.1 Several Donor Programme Partners in one programme
Some programmes are implemented in cooperation with more than one DPP. In such
programmes, the MoU may provide some clarification on the distribution of
responsibilities between the DPPs. Beyond this, the PO and DPPs may in dialogue agree
on the role of each of the DPPs in the programme. In some programmes, the DPPs
may wish to be equally involved in all levels of the cooperation. In others, it could be
more efficient that one institution takes on the role as “Lead DPP”, while the other
DPP(s) advise specifically in the subject areas in which they have particular expertise.
In such cases the Lead DPP may take a coordinating role, overseeing the cooperation
and ensuring that that the other DPPs are sufficiently included in their relevant subject
fields.
It should be noted that the arrangement between the DPPs is not regulated formally
in the Regulations or Guidelines, and may be adapted depending on the specificities of
the programmes and interest of the parties involved.
4.2 Role of the DPP in the programme preparation phase
As soon as possible after the signature of the MoU in which the PO and DPP are
designated, the PO shall invite the DPP to advise and assist the PO in the preparation
of the programme. While the overall role of the DPP is derived from the tasks entrusted
to the Cooperation Committee in accordance with Art. 4.4 of the Regulations, the PO
and DPP are expected to take up contact without delay after the MoU is signed, and
where necessary, before the Cooperation Committee is formally established. While the
19
PO has the overall responsibility for preparing the programme, the DPP is expected to
be proactive and engaged in the development of the programme strategy and design.
The FMO shall be kept informed of programme preparation meetings between the PO
and the DPP.
The exact role of the DPP may vary from programme to programme. During the
programme preparation phase, it is recommended that the DPP and the PO discuss
the expected role of the DPP and modalities for the programme partnership.
Among the earliest tasks of the DPPs is their contribution to the planning and
implementation of preparatory stakeholder consultations. In addition to assisting the
PO in consulting relevant stakeholders in the Beneficiary State, the DPP may propose
dedicated bilateral stakeholder consultations, involving relevant donor state entities,
to provide input to bilateral aspects of the programme5. Identifying potential areas for
bilateral cooperation, and specific partners in pre-defined projects, is an important
task for the DPP in this period.
Central to this first stage of cooperation is the common development of a concept note,
as defined in Art. 6.2 of the Regulations. The concept note shall define the scope and
planned results of the programme, and be prepared in cooperation with the FMO, and
in consultation with relevant stakeholders. In donor partnership programmes, the DPP
shall play a key role in the drafting of this document.
While the DPP is expected to provide input to all relevant aspects of the concept note,
the DPP’s contribution to the section on bilateral ambitions, including the use of funds
for bilateral relations, is of particular importance. The DPPs’ expected involvement,
role and scope of the cooperation shall be described in this part of the concept note.
Moreover, key information about the DPP and its relevance to the programme, as well
as about previous cooperation between the PO and the DPP, shall be listed. If the
programme has more than one DPP, the division of responsibilities between the DPPs
should also be spelled out, including identifying any Lead DPP.
The PO and FMO shall actively include the DPP in their correspondence during the
programme preparation phase. DPP input to the concept note is a key factor to be
considered in the appraisal of the concept note. In case the DPP has not been
sufficiently involved and/or consulted, the concept note may be rejected by the
Donors.
5 Please see section 3.4.2 of this Guideline for further information on Bilateral Fund activities in the
programme preparation phase.
20
4.3 Role of the DPP in the programme implementation
phase
During the implementation phase, the DPP will inter alia assist in reviewing the
progress of the programme and discuss any needs for amendments. The DPP shall
throughout the implementation period:
advise on bilateral activities and possible project partners in the Donor States;
advise on selection criteria and the texts for call(s) for proposals;
observe or participate in selection processes as relevant;
review progress made towards achieving the outputs, outcome(s) and objective
of the programme;
review progress made towards strengthening bilateral relations;
examine the results of the implementation of the programme;
review the draft annual programme reports;
advise the PO of any revision of the programme likely to facilitate the
achievement of the programme’s expected outcome(s) and objective; and
advise on the use of funds for bilateral relations.
The DPP shall be invited to take an active part in selection processes under the
programme. As a minimum, the DPP shall be consulted on call texts and selection
criteria, and be invited as an observer in the project selection. If desired by both
parties, the DPP may participate as a voting member in the selection process. Such an
arrangement may be proposed in the concept note and included in the Programme
Agreement. In addition to general support and advice in the selection process, the DPP
is expected to contribute specifically in facilitating bilateral partnerships on project
level.
The DPP is moreover expected to continuously advise on the use of the funds for
bilateral relations, to propose relevant activities, to assist the PO in obtaining such
funds and to participate in activities supported by the fund if feasible.
In the relevant Donor State, the DPP shall actively inform relevant entities about
bilateral partnership opportunities in the programme(s) and facilitate project level
cooperation, as well as cooperation in activities supported by the fund for bilateral
relations, where relevant. The DPP is expected to encourage bilateral match making
activities in the Beneficiary and/or Donor State.
The donor programme partnership should contribute to exchange of experience and
mutual capacity building. Where possible, the cooperation should provide a platform
for increased political and technical cooperation between the Donor and the Beneficiary
States within the relevant sector(s), going beyond the programme cooperation. The
PO and DPP are encouraged to discuss potential for wider cooperation, and to explore
this through activities supported by the bilateral funds. Ideally, the cooperation has
the potential to increase awareness and understanding by relevant policy makers in
the respective sectors of the other country’s sector policies and political initiatives,
thus facilitating further cooperation and mutual support in the international arena.
21
Specific arrangements are in place for research programmes implemented as donor
partnership programmes – please refer to the Guideline for Research Programmes.
4.4 DPP communication responsibilities
Throughout the programme preparation and implementation, the DPP is expected to
play an active part in communicating cooperation possibilities, especially with regard
to the target groups in the Donor State. This includes creating awareness of the
existence, the objectives, the possibilities for and actual cooperation between Donor
State entities and entities in the Beneficiary States. The DPPs shall also provide
information on their involvement and on the results achieved in the programme(s) to
the general public in the Donor State(s).
The DPP shall ensure that a person is responsible for communication work, and it is
suggested that the DPP cooperates with ministries in the relevant donor country in
implementing their communication efforts.
The DPPs shall report on communication activities in their annual progress report to
the FMO. Detailed information on the DPP’s communication responsibilities can be
found in Annex 3 to the Regulations.
4.5 DPP framework agreement
Each DPP will enter into a Framework Agreement with the FMO, which covers the DPPs’
participation in the preparation and implementation of programmes under the EEA and
Norwegian Financial Mechanisms 2014-21. The reimbursement of costs related to its
DPP activity will be based on annual work plans and budgets and certified invoices for
eligible costs, to be approved by the FMO. The DPP shall consult the respective PO(s)
before submitting annual work plans and budgets, which shall be based on the
activities and the expected results of the cooperation agreed with the PO for the
coming year.
The DPPs will have costs related to the programme cooperation reimbursed from the
funds set aside for the Costs of the Donor States (Article 1.9 of the Regulations) and
shall not charge any costs to the programme budget.
Eligible costs are defined in the Framework Agreement and comprise staff costs, travel,
consultancies and miscellaneous costs. The DPPs shall submit to the FMO a brief annual
progress report describing the activities carried out and a short assessment of the
outcome of the cooperation, together with the financial reporting.
There is no need for the PO to enter into a cooperation agreement with the DPP, as
the basis for the cooperation is defined in the Programme Agreement, MoU and in the
Regulations. There is however a need to agree on the ambitions, roles and working
methods. Some DPPs may decide to conclude agreements with the PO to ensure
mutual understanding of the cooperation. If such a document is developed, it shall be
shared with the FMO.
22
4.5.1 DPPs advising in other programmes
Upon agreement with the FMO, and in addition to its involvement in a donor
partnership programme, a DPP may take on additional tasks related to advising on the
preparation and implementation of relevant programmes in which it is not formally
engaged as DPP. This is intended to offer POs and DPPs the possibility to collaborate
in programmes in limited areas or phases. This could be relevant either for
programmes which do not have a formal DPP designated, or for other programmes in
which a DPP may be able to offer specific input to the programme development and/or
implementation. This is a flexible role which can be defined in more details as needs
arise; the DPP may provide input on its particular area of expertise and/or advice on
strengthening the bilateral aspect of the programme. The level of such involvement,
in addition to being agreed with the FMO, must also be decided in collaboration with
the relevant PO/Cooperation Committee. Any costs related to such involvement (as
agreed with the FMO/Donors) shall be reimbursed through the DPP Framework
Agreement with the FMO.
4.6 DPPs as project partners
In some cases, the DPP institution might also be defined as a project partner in a pre-
defined project under the programme. The tasks, responsibilities and costs related to
its role as project partner are not covered by the DPP Framework Agreement, but shall
be covered by the project budget.
In cases where a DPP acts as project partner, the institution has to make a clear
distinction between its role as DPP, and its role as donor project partner to one of the
project promoters. In its role as donor project partner, it has to enter into a partnership
agreement in line with Article 7.7 of the Regulations. The costs related to the work as
project partner shall be agreed in the partnership agreement.
Since one of the tasks of a DPP is to advise in the selection process, the DPP may not
participate as donor project partner in projects selected as a result of an open call for
proposals under a programme in which it acts as DPP. Pre-defined projects are
considered differently, as these projects are not undergoing a selection process; they
are agreed on by the Donor State and the Beneficiary State either in the MoU or in the
Programme Agreement.
23
Illustration 5: Contractual relationships between the actors in the EEA and
Norwegian Financial Mechanisms
4.7 The Cooperation Committee
The Cooperation Committee (Art 4.4 of the Regulations) shall provide advice on the
preparation and implementation of the programme. The Cooperation Committee is the
main forum for collaboration between the DPP and the PO, and is therefore considered
instrumental to strengthening bilateral relations. In addition to the tasks listed in the
Regulations, the parties are encouraged to broaden the agenda to any issue of
common interest, to share experience and promote dialogue and cooperation, in order
to provide a basis for longer-term professional cooperation and political dialogue.
4.7.1 Establishing the Cooperation Committee
Due to the Cooperation Committee’s role in advising on programme preparation, it is
necessary to formally establish the Committee as soon as possible after the PO and
DPP have been designated. As a minimum requirement, the Cooperation Committee
shall be established before stakeholder consultations are carried out, and before the
concept note is submitted to the Donors, as the Cooperation Committee shall advise
on these issues. The PO and the DPP may choose to have meetings prior to the
Committee being formally established.
There is no specific requirement in the Regulations on how the Committee should be
established, except that the PO is in charge of establishing it, bearing in mind the
principles of implementation set out in Article 1.3 of the Regulations. The PO shall at
an early stage discuss the establishment and organisation of the Cooperation
Donors
FMO
NFP
PO
project promoterproject
partner(s)
DPPCooperation Committee
24
Committee with the DPP in order to reach a common understanding on its composition
and working methods, e.g. how often, when and where to meet, how to set the
agenda, etc.
It is up to the parties to agree upon the extent to which the working method of the
Cooperation Committee should be codified in formal rules of procedures / mandates.
Regardless of how much is formalised, the parties should discuss and reach a common
agreement on the following issues:
Membership: should there be permanent and substitute members, or could
membership be flexible and decided on an ad hoc basis?
How often should the Committee meet?
Should the meeting location alternate between the Donor and Beneficiary
State?
How to agree on the agenda?
How far in advance should meeting invitations, including agenda, and other
documents be sent out?
What are the deadlines for distributing draft minutes and comments to them?
As a minimum, the Cooperation Committee consists of representatives from the PO,
the DPP(s) and/or International Partner Organisations (IPOs) as defined in Article
1.6(i) of the Regulations, as applicable. It is up to the parties to agree on the size of
the Committee, depending on the specific needs of each programme. It is important
that relevant programme partners are invited to the Committee. Both the PO and the
DPP can suggest inviting experts and other relevant parties. These could include the
public authority in charge of the policy area in question, or similar relevant
stakeholders, as well as other external experts from the Donor and Beneficiary States.
The DPP and the PO should agree on the attendees. In cases where the NFP acts as
PO, the line ministry/entity responsible for the relevant policy area shall be included
in the Committee.
The NFP, the FMO and the relevant embassies shall be kept informed about the
planning and invited as observers to the Cooperation Committee meetings. The
minutes of the meetings shall be kept and shared with the FMO.
Costs related to the running of the Cooperation Committee shall primarily be covered
from programme management costs (ref. Article 8.10), which are eligible from the
date when the NFP designates the PO. Costs incurred by the DPP in this respect will
be covered from the budget set in the DPP Framework Agreement and reimbursed to
the DPP directly by the FMO.
5 Project partnership
In order to achieve the overall objective of strengthened bilateral relations, all
programmes shall encourage and facilitate projects planned and implemented in
partnership between Donor and Beneficiary State entities - donor partnership projects.
25
When a call for proposals is foreseen, donor partnership opportunities should be
planned for and widely promoted by the POs in the Beneficiary States, as well as by
the DPPs in the Donor States, allowing sufficient time for partnerships to materialise.
POs are expected to organise specific measures with this aim (for further details see
sections 3.4.2 and 3.4.3).
The project level cooperation shall be mutually beneficial to the involved partners, and
the partnership is expected to have a positive impact on the project.
5.1 Donor project partners
A “donor project partner” is a legal person actively involved in, and effectively
contributing to, the implementation of a project, and whose primary location is in one
of the Donor States. Both public and private entities, commercial and non-commercial,
as well as non-governmental organisations may participate as donor project partners
in a project. Natural persons who are legal residents of the Donor States may also
participate as donor project partners in some cases. (Art. 1.6(c) and 7.2 of the
Regulations)
The primary location of entities refers to the location where the managerial and
administrative centre of the entity is located (e.g. headquarters, head office, board of
directors, etc.). Given the variety of potential entities under consideration, and the
complexity of different international structures, a decision on primary location may
have to be taken on a case-by-case basis. For international NGOs a national section
will in most cases qualify.
The degree of involvement and the content of the partner’s contribution will vary but
only projects implemented in close co-operation between Beneficiary and Donor State
partners will be considered donor partnership projects. These should be joint initiatives
where input from both partners is necessary to achieve the project objectives.
Donor project partners should be involved as early in the planning stages of the project
cycle as possible. The donor project partner should be consulted on, and given the
opportunity to contribute to the relevant aspects of the project application.
5.2 Facilitation of donor project partnerships
It is crucial that the PO actively encourages and facilitates the establishment of donor
partnership projects throughout the programme cycle, by considering the potential for
bilateral project-level cooperation during the programme development, carrying out
relevant match making events and activities before, or at the latest, in conjunction
with launching calls for proposals, as well as by encouraging donor partnership projects
in call texts. The PO should apply clear and proportionate application procedures and
reporting requirements, with a view to encourage cooperation between entities in the
Donor and Beneficiary States.
The PO should ensure that potential project promoters are provided with sufficient
guidance on how to best establish contact with potential donor project partners.
26
Partnership opportunities shall be widely communicated, including on the PO’s
dedicated programme websites.
The DPPs shall assist the PO in the facilitation of project partnerships through
appropriate measures, from ensuring that programmes are designed to encourage and
enable bilateral cooperation on project level,
to identifying and bringing in potential donor
project partners. In the Donor states, the
DPPs shall communicate partnership
opportunities to relevant entities, and should
make such information available on their
websites.
Donor State embassies may also offer advice
and assistance for POs and potential project
promoters in the Beneficiary States, by
advertising partnership opportunities and
referring potential project promoters to
relevant Donor State entities.
5.3 Project partnership
agreements
In each donor partnership project, the project
promoter shall enter into a partnership
agreement with the donor project partner(s),
in line with the requirements set out in Article
7.7 of the Regulations. Partnership
agreements involving a donor project partner shall be in English.
A partnership agreement template is attached as Annex 6 to this Guideline and may
be used in donor partnership projects.
The partnership agreement forms the basis for the cooperation between the parties,
and it is therefore crucial that the project promoter and donor project partner work
closely together in the preparation of the agreement.
The draft partnership agreement or alternatively a letter of intent shall be submitted
to the PO in English at the latest prior to the signature of the project contract. This
gives the project promoter and donor project partner sufficient time to develop their
cooperation and agree on roles, responsibilities and financial arrangements without
being rushed into signing a partnership agreement. The parties should however seek
to sign the partnership agreement as soon as possible following the signature of the
project contract.
In any project, including donor partnership projects, the project promoter is in general
the grant recipient and the only one to enter into a contractual relation with the PO.
It is important to note that
there are substantial
variations in the level of
costs between the Donor
and Beneficiary States.
Differences in price levels
must be reflected in the
planning and
implementation of project
partnerships. This is to
ensure that sufficient funds
are set aside to donor
partners and that
reimbursements cover their
actual costs. The DPPs and
the FMO can be of
assistance when there are
questions regarding the cost
level in the Donor States.
27
In most donor partnership projects, the donor project partner will nevertheless
implement parts of the project activities. The financial contribution to the project will
consequently be distributed among the partners in accordance with the partnership
agreement.
The expenditure of the donor project partners is reimbursed from the project budget,
and accordingly, it is important that the partnership agreement includes amounts
which reflect the actual cost level in the Donor State. The PO should pay attention to
the amount set aside for the donor project partner in the partnership agreement, to
enable the donor project partner to be reimbursed for its contribution. In donor
partnership programmes, the DPP should support the PO in overseeing this.
6 Bilateral reporting6
Bilateral cooperation in the framework of the
EEA and Norwegian Financial Mechanisms goes
beyond projects and programmes, and includes
funds for bilateral relations and DPP
engagement. Reporting on progress towards
the bilateral objective will therefore be based
on a combination of narrative and statistical
reports from NFPs, POs and DPPs through the
reporting system. In addition external reviews
will be carried out.
Progress towards the bilateral objective shall be reported on through the following
reports:
6.1 Strategic Report from the NFP
The Strategic Report, to be submitted by the NFP to the Donors in accordance with
Article 2.6 of the Regulations, shall cover all bilateral activities implemented in the
Beneficiary State. This does not imply an obligation to report in detail on each activity,
but rather a strategic reporting on the overall progress towards achieving the bilateral
objective.
The bilateral section of the draft Strategic Report should be consulted with the JCBF
and the report is subject to approval by the Donors. In this report the NFP provides:
- An assessment of the contribution of the EEA and Norwegian Financial
Mechanisms 2014-2021 towards the achievement of the bilateral objective
- Reporting on the use of the fund for bilateral relations.
6 For more detailed guidance on reporting please refer to the “Results Guideline”
An information system (a
grant management and
reporting system) is
currently under
development. Once the
system is operational, the
reporting is expected to be
integrated in the system
28
6.2 Reporting by the PO
In the Annual Programme Report, the PO shall,
in accordance with Article 6.11 of the
Regulations, assess and report on progress
towards the bilateral objective, including, but not
limited to, the bilateral outcome and output
indicators.
The PO shall report to the NFP on the use of all
funds for bilateral relations allocated to its
programme. Specific provisions in this respect
should be set in an appropriate legal instrument.
6.3 Annual progress reports from the DPPs
Through the annual progress report, the DPP will report to the FMO on the
implementation of the DPP’s Work Plan and the use of the funds allocated to them. In
the progress report, the DPP will, as a minimum, report on the following:
- Progress towards each of the bilateral results, including those experienced by
the DPP institutions themselves.
- Activities implemented in donor partnership programmes during the reporting
period, separated per programme.
- Activities implemented in non-partnership programmes during the reporting
period, separated per programme.
- Other bilateral activities during the reporting period.
- Major deviations from work plan.
- Challenges or risks.
6.4 Reporting on bilateral initiatives
Bilateral initiatives funded from the funds for bilateral relations, from the programme
management costs or from the technical assistance shall be reported on through the
Information System. The PO is responsible for registering initiatives covered from the
programme management costs or from the funds for bilateral relations allocated to
the programme, whereas the NFP is responsible for registering other initiatives. The
registration in the system should be made within four weeks following the completion
of the initiative.
The bilateral initiatives reporting enables overviews of the type of activities supported,
the actors involved, and results achieved. A detailed guidance note on how to fill in
the form will be available in the Information System.
A legal instrument is a
written document that
formally states a
contractual relationship,
duty or right. Examples of
legal instruments are
agreements, decrees or
legislative acts.
29
6.5 External reviews
To complement the self-reporting from the PO and the DPP, as well as the analysis
made by the NFP in the Strategic Report, the Donors through the FMO may commission
external studies at regular intervals – at start, mid-term and at the end of period - to
capture the complexity of the outcomes related to strengthened bilateral relations.
6.6 General rules on financial reporting and verification and
certification of expenditure
Financial reporting and verification and certification of expenditures in programmes,
projects, and under the fund for bilateral relations follow the rules laid down in the
Regulations.7
6.6.1 Proof of expenditure
Costs incurred by all entities shall always be supported by receipted invoices, or
alternatively by accounting documents of equivalent probative value. Where activities
are implemented in the framework of competitive tendering procedures, payments to
contractors shall be supported by receipted invoices based on the signed contracts.
In accordance with the provisions of Articles 8.3.1 (b) and 8.8.2 of the Regulations,
travel costs, including subsistence allowance, may be calculated as a lump sum, on
the basis of defined rules approved by the appropriate entity (the PO with regards to
lump sums in projects and the NFP with regards to lump sums applied to activities
under the fund for bilateral relations).8
Due to the large variations in rates applied by national administrations, it is
recommended to apply the European Commission’s flat rates for per diems as
presented in Annex 1 to the Commission decision of 18.11.2008 on General
implementing provisions adopting the Guide to missions for officials and other servants
of the European Commission - C(2008)6215 final - and subsequent updates.
In line with the responsibility of the NFP and/or POs to verify expenditure declared,
requirements for the submission of proof of expenditure shall be set in the relevant
legal instrument.
The proof of expenditure to be submitted may take a form of:
7 For guidance on these issues, reference is made the Financial Guidance Document issued by the FMO.
8 For the use of lump sums for travel costs incurred in programmes under programme area “Education, Scholarships, Apprenticeships and Youth Entrepreneurship’” or from the scholarship component under any programme, please refer to Article 8.9 of the Regulation and the “Guideline for Educational Programmes”.
30
1) receipted invoices or accounting
documents of equivalent probative value;
2) a report by an independent auditor,
qualified to carry out statutory audits of
accounting documents, or a report issued
by a competent and independent public
officer certifying that the claimed costs are
incurred in accordance with the
Regulation, the relevant law and national
accounting practices.
In case of option 2):
the report, if submitted by an international
organisation or body or agency thereof or
by a project partner whose primary
location is outside the Beneficiary State,
shall be accepted by the project promoter
and PO as sufficient proof of incurred
expenditure;
the cost of the report is considered eligible,
providing that is complies with the general
principles of the eligibility of expenditures
as defined in Art. 8.2 of the Regulations;
sufficient funds shall be set aside in the
budget to cover this cost;
upon request by the Donors or the EFTA
Board of Auditors or the Office of the
Auditor General of Norway, promoters and
partners shall grant access to the
supporting documents on the basis of
which the report was issued;
For the full requirements regarding proof of expenditures, please consult the
Regulations, Art. 8.12.
6.6.2 Verification and certification of expenditure
For donor partnership programmes and projects, the verification of expenditure is
embedded in the verification procedures applicable to programmes and projects in
general. For the Fund for bilateral relations, the responsibility for verification of
expenditure lies with the NFP, although the CA shall be responsible for verification of
expenditure incurred directly by the NFP. The necessary provisions regarding
verifications to be carried out by the PO shall be set in an appropriate legal instrument.
Accounting documents
of equivalent probative
value:
Accounting document of
equivalent probative
value’ means any
document submitted by
the body responsible for
implementation to prove
that the book entry gives
a true and fair view of the
transactions actually
made, in accordance with
standard accounting
practice.
Competent and
independent public
officer:
Public officer recognised
by the relevant national
authorities as having a
budget and financial
control capacity over the
entity incurring the costs
and who has not been
involved in the
preparation of the
financial statement.
31
The CA is responsible for the certification of expenditure for all bilateral activities,
including expenditure financed by the fund for bilateral relations. The certification
process shall be in line with Article 5.4 of the Regulations. Guidance on the verification
and certification procedures can be found in the Financial Guidance document
produced by the FMO.
6.6.3 Financial reporting under the fund for bilateral relations
For the fund for bilateral relations, the NFP is responsible for ensuring adherence to
the reporting requirements related to advance and interim payments, payments of the
Final Balance, forecast of likely payment applications, and reporting on any suspected
or actual irregularities to the Irregularities Authority. The NFP shall compile aggregated
IFRs and Final Balance based on input from relevant POs and promoters under the
fund for bilateral relations, and the Certifying Authority (CA) shall submit to the Donors
certified IFRs and the final balance in the last IFR.
6.7 Procurement rules
The applicable rules on public procurement should always be complied with. The PO
and the project promoter are responsible for evaluating whether a partnership raises
any procurement or state aid issues. This will depend on the precise nature of the
activities to be performed by the partner and the value of any services provided.
Actual or potential project partners should be aware that they may in certain cases be
excluded from participation in public tenders when they were directly involved in the
preparation of these tenders, for example, through advising the project promoter on
technical specifications.
Incurred expenditure under the fund for bilateral relations
In the context of IFRs and the Final Balance reporting to the FMO, the following shall be
reported as incurred expenditure:
Funds managed by the National Focal Point:
When the NFP is the beneficiary of the funds: actual incurred expenditure by the NFP
is reported.
Other bilateral initiatives granted by the NFP, e.g. selected through calls for proposals
or pre-defined bilateral initiatives; the payments by the NFP to the promoters shall be
reported as incurred.
Funds managed by the Programme Operator:
When the PO is the beneficiary of the funds: actual incurred expenditure by the PO.
Other bilateral initiatives granted by the PO, e.g. selected through calls for proposals
or pre-defined bilateral initiatives; the payments by the PO to the promoters shall be
reported as incurred.
32
Costs incurred by donor project partners in the Donor State, are subject to the Donor
State’s national procurement rules.
7 Legal framework
This Guideline applies to the implementation of programmes, projects and initiatives
aimed at strengthening bilateral relations between the Donor States and the
Beneficiary States funded by the EEA and Norwegian Financial Mechanisms 2014-
2021.
The following documents constitute the legally binding framework which applies to the
present Guideline:
- Protocol 38c of the EEA Agreement establishing an EEA Financial Mechanism
and/or the Agreement between the Kingdom of Norway and the European Union
on a Norwegian Financial Mechanism for the Period 2014-2021, as applicable;
- The Memorandum of Understanding signed between the Donor State(s) and
Beneficiary State;
- The Regulation on the implementation of the European Economic Area Financial
Mechanism 2014‐2021 and Annexes and/or the Regulation on the
implementation of the Norwegian Financial Mechanism 2014‐2021 and Annexes,
as applicable;
- Any guidelines adopted by the FMC/NMFA, as appropriate.
The Guideline contains references to relevant articles of the Regulations, but this does
not dispense the user from referring to the Regulations. Special note should be taken
of the Results Guideline to be read in parallel with this Guideline.
8 Annexes
Annex 1 – Glossary
Annex 2 – Timeline illustration
Annex 3 – Work Plan template
Annex 4 – Expression of interest template
Annex 5 – Request for advance payment for POs
Annex 6 – Partnership Agreement template
Annex 7 – Template for certification of costs
Annex 1 - Glossary of bilateral terminology
BILATERAL FUND AGREEMENT: Agreement between the Donors and Beneficiary State
regulating the use of the Fund for bilateral relations.
BILATERAL OBJECTIVE: To strengthen bilateral relations is defined as enhanced
cooperation and improved mutual knowledge and understanding between Donor and
Beneficiary States. One of the two overall objectives of the EEA and Norwegian Financial
Mechanisms 2014-2021.
BILATERAL STAKEHOLDER CONSULTATION: Meetings and/or exchanges with
stakeholders in the process of preparing a programme under the EEA and/or Norwegian
Financial Mechanisms 2014-2021 aiming at strengthening the bilateral profile of a
programme. A bilateral stakeholder consultation is typically specifically targeted towards
relevant stakeholders in the Donor States.
COOPERATION COMMITTEE: A committee that shall be established under a donor
partnership programme consisting of representatives from the Programme Operator and
representatives from the Donor Programme Partner(s) and/or the International Partner
Organisation(s), as applicable. Further described in Article 4.4 of the Regulations.
DONOR PARTNERSHIP PROGRAMME: A programme of the EEA and/or Norwegian
Financial Mechanisms 2014-2014 prepared and/or implemented in cooperation with one
or more Donor Programme Partner(s). Described in Article 4.3 of the Regulations.
DONOR PARTNERSHIP PROJECT: A project implemented in close cooperation with a
project partner whose primary location is in one of the Donor States. (As defined in Article
1.6 (c) of the Regulations)
DONOR PROGRAMME PARTNER (DPP): A public entity in a Donor State designated by
the FMC/NMFA advising on the preparation and/or implementation, and/or participating in
the implementation of a programme. (As defined in Article 1.6 (d) of the Regulations).
DONOR PROJECT PARTNER: A legal person actively involved in, and effectively
contributing to, the implementation of a project, and whose primary location is in one of
the Donor States.
EXPRESSION OF INTEREST: Form through which Programme Operators may request
funding from the Fund for bilateral relations. A template is annexed to the Bilateral
Guideline.
FUND FOR BILATERAL RELATIONS: A fund of a minimum of 2% of the Beneficiary
State’s total allocation to strengthen bilateral relations between the Donor States and the
Beneficiary State. Further described in Article 4.6 of the Regulations.
JOINT COMMITTEE FOR BILATERAL FUNDS (JCBF): A committee established by the
Beneficiary State to discuss matters of bilateral interest, decide on the use of the Fund for
bilateral relations and review progress in the implementation of the EEA and Norwegian
Financial Mechanisms 2014-2021 towards reaching the objective of strengthened bilateral
relations. (As defined in Article 1.6 (k) of the Regulations). The composition, role and
functioning of the JCBF shall be further defined in the Bilateral Fund Agreement and the
JCBF is further described in Article 4.2 of the Regulations.
LEGAL PERSON: Individual or entity, other than a natural person, created by law and
recognized as a legal entity having distinct identity, legal personality, rights, and being
subject to obligations.
NATURAL PERSON: A human being, as opposed to a legal person like a company or
organisation.
PARTNERSHIP AGREEMENT: Agreement between a project promoter and a project
partner implementing a project in partnership regulating the inter alia roles and
responsibilities of the parties. Partnership agreements are described in Article 7.7 of the
Regulations and a partnership agreement template is annexed to the Bilateral Guideline.
PROGRAMME: A structure setting out a development strategy with a coherent set of
measures to be carried out through projects with the support of the EEA or Norwegian
Financial Mechanisms 2014-2021 and aimed at achieving agreed objectives and outcomes.
(As defined in Article 1.6 (o) of the Regulations)
PROJECT: An economically indivisible series or works fulfilling a precise technical function
and with clearly identifiable aims related to the programme under which it falls. A project
may include one or more sub-projects. (As defined in Article 1.6 (t) of the Regulations).
The fund for bilateral relations does not support projects.
WORK PLAN: A description of the implementation system for the Fund for bilateral
relations, major activities to be organised under the Fund, and the programmes of bilateral
interest. The Work Plan is adopted by the Joint Committee for Bilateral Funds.
Programme level Project level Fund for bilateral relations 1 30 April 2024: Final date of eligibility of expenditures in projects 2 31 December 2024: Final date of eligibility of management costs incurred by PO 3 30 April 2025: Final date of eligibility of Funds for bilateral relations
MoU is signed PA signed 31/12 20242
Expenditures related to strengthening of bilateral relations are eligible as management costs incurred by POs
JCBF first meeting
Input on JBCF
role, etc
Bilateral fund agreement
signed
NFP drafts WP and consults
DS
Work Plan is approved
Calls for expressions of interest for POs
Implementation of BF measures and activities
DPP provides strategic advice and expertise to PO during programme development and implementation
Call for Donor Partnership Projects
Implementation of donor partnership projects
Costs under the Funds for bilateral relations are eligible from the signature of the MoU and extend beyond the programme implementation phase
Programme development
30/04 20253
30/04 20241
Programme implemenatation
Programmes may request advance from Funds for bilateral relations
1
Work Plan FUND FOR BILATERAL RELATIONS (In accordance with Article 2.4 of the Bilateral Fund Agreement and Article 4.2 of the Regulations on the implementation of the EEA and Norwegian Financial Mechanisms 2014-2021)
[Country]
1. Background
Please refer briefly to any major fields of cooperation characterising the existing bilateral relations between the BS and the DS. Were there any lessons learned from the work to strengthen bilateral relations under the Financial Mechanisms 09-14? Briefly refer to past experiences, highlighting successes that can be built on. Are there any on-going initiatives or upcoming events of importance for bilateral relations to build on? Could initiatives be tied to major events in the Donor or Beneficiary States (state visits, international chairmanships, EU Presidencies, European Capital of Culture, etc.? How can the funds best be used to promote and facilitate partnership projects under the programmes?
2. Main objective Enhanced cooperation and improved mutual knowledge and understanding between Donor and Beneficiary States.
Please outline the main aims and ambitions for the Fund for bilateral relations with reference to priority sectors, programmes and measures. Please include reference to any areas of common bilateral interest highlighted in the MoU that should be prioritised, as well as the areas identified by the Joint Committee for Bilateral Funds? The modalities for allocating funds should be outlined, e.g. calls, pre-defined activities, activities carried out by the NFP, allocations to Programme Operators. Key issues and upcoming larger events should be included. Please also shortly describe the management of Bilateral Funds, including the selection process.
3. Implementation system
Please include a brief description of the implementation system for the Fund for bilateral relations. The modalities for allocating funds should be outlined, e.g. calls, pre-defined activities, activities carried out by the NFP, allocations to Programme Operators. A more detailed description will be included in the detailed description of the management and control systems.
2
4. Bilateral Priority Programmes
Programme
number DPP(s) Funds allocated in
MoU JCBF
Allocations Total allocation Comments
3
5. Major activities
Please outline major initiatives foreseen under the Fund for bilateral relations. Following the results-based management approach, please keep a results-focus, identifying outputs with relevant indicators.
The initiatives shall contribute to the common bilateral outcome: Enhanced cooperation between Beneficiary State and Donor State entities involved.
Initiative 1
Title
Implementing entity (donor or beneficiary state entity):
Partner(s) (each initiative shall involve minimum one donor state entity and one beneficiary state entity):
Allocation (a detailed budget is not required):
Short description:
Planned results1
1 Please refer to the Results Guideline
OUTPUT INDICATOR TARGET
Example: Joint project proposals developed
Example: Number of projects involving cooperation with a donor project partner
Example: 10
4
Initiative 2
Title
Implementing entity (donor or beneficiary state entity):
Partner(s) (each initiative shall involve minimum one donor state entity and one beneficiary state entity):
Allocation (a detailed budget is not required):
Short description:
Planned results2
2 Please refer to the Results Guideline
OUTPUT INDICATOR TARGET
Example: Joint project proposals developed
Example: Number of projects involving cooperation with a donor project partner
Example: 10
5
Initiative 3
Title
Implementing entity (donor or beneficiary state entity):
Partner(s) (each initiative shall involve minimum one donor state entity and one beneficiary state entity):
Allocation (a detailed budget is not required):
Short description:
Planned results3
3 Please refer to the Results Guideline
OUTPUT INDICATOR TARGET
Example: Joint project proposals developed
Example: Number of projects involving cooperation with a donor project partner
Example: 10
6
6. Budget
Please note that this budget follows the structure of the IFR template.
Title Budget Comments Activities carried out by the NFP
Call for proposals (national level. In case several calls are foreseen, please add one line for each call)
Pre-defined activities (total budget for planned pre-defined activities at national level)
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Bilateral funds for programme [no]
Funds still to be allocated
TOTAL
Expression of interest for Programme Operators FUNDS FOR BILATERAL RELATIONS (In accordance with Article 2.5.3 of the Bilateral Fund Agreement and Article 4.7 of the Regulations on the implementation of the EEA and Norwegian Financial Mechanisms 2014-2021)
Programme number: Fill in
Programme title: Fill in
Programme Operator: Name of Programme Operator
Donor Programme Partner(s): Name of Donor Programme Partner(s)
Amount requested from the Fund for bilateral relations:
Pre-defined initiatives to be implemented by PO/DPP: €
Pre-defined initiatives to be implemented by other entities: €
Call(s) €
TOTAL €
Description [Outline here a summary of the planned use of the requested bilateral funds, including any major initiatives planned. If the funds will be re-granted, this should be described here, including selection procedures, planned eligible applicants and partners.]
Planned results [Outline here how the requested bilateral funds will contribute to the common bilateral outcome “Enhanced collaboration between BS and DS entities involved in the programme” by providing suitable outputs, indicators and targets1:]
OUTPUT INDICATOR TARGET Example: Donor project partnerships established
Example: Number of projects involving cooperation with a donor project partner
Example: 25
Example: Training courses co-organised by donor and beneficiary state entities
Example: Number of training courses co-organised by donor and beneficiary state entities
Example: 15
For the Programme Operator2
Name
Signature
Position
Date
1 These targets are not binding, but established to indicate the desired results. Please refer to the Results Guideline for more information on bilateral indicators. 2 In case of Donor Partnership Programmes, the signature confirms that the content of the expression of interest has been discussed and agreed in the Cooperation Committee.
Request for advance payment for Programme Operators FUNDS FOR BILATERAL RELATIONS (In accordance with Article 4.6.4 of the Regulations on the implementation of the EEA and Norwegian Financial Mechanisms 2014-2021)
Programme number: Fill in
Programme title: Fill in
Programme Operator: Name of Programme Operator
Donor Programme Partner(s): Name of Donor Programme Partner(s)
Advance payment requested1 €
Description [Outline here a summary of the planned use of the requested bilateral funds, including any main initiatives planned.] Planned results [Outline here how the requested bilateral funds will contribute to the common bilateral outcome “Enhanced collaboration between BS and DS entities involved in the programme” by providing suitable outputs, indicators and targets2:]
OUTPUT INDICATOR TARGET Example: Project applications submitted with donor project partners
Example: Number of projects applications submitted with donor project partners
Example: 25
Example: Donor state stakeholder involvement
Example: Number of meetings with donor state entities
Example: 5
For the Programme Operator3
Name
Signature
Position
Date
1 Max. €50,000 2 These targets are not binding, but established to indicate the desired results. Please refer to the Results Guideline for more information on bilateral indicators. 3 In case of Donor Partnership Programmes, the signature confirms that the content of the expression of interest has been discussed and agreed with the DPP(s).
Agreement by the National Focal Point:
Name
Signature
Position
Date
Comments by NFP
[Please include a justification for why the NFP cannot make the payment]
Payment details:
IBAN:
Fill in
BIC/Swift code:
Fill in
Name of account holder:
Fill in
Bank account no. Sort/Branch code:
Fill in
Full bank name and address:
Fill in
1
Template Partnership Agreement for
donor partnership projects
between
[Name] [Full address, tax ID number or other]
[Represented by] hereinafter referred to as the “Project Promoter”
and
[Name] [Full address, tax ID number or other]
[Represented by] hereinafter referred to as the “Project Partner”
hereinafter referred to individually as a “Party” and collectively as the “Parties”
for the implementation of the Project [“Title”] funded under the [EEA/Norwegian] Financial Mechanism Programme
[Programme number and title]
Disclaimer: This template Partnership Agreement aims at assisting Project Promoters and Project Partners in the preparation of their partnership agreements required under Article 7.7 of the Regulations on the implementation of the EEA and Norwegian Financial Mechanisms 2014-2021. It is provided for information purposes only and its contents are not intended to replace consultation of any applicable legal sources or the necessary advice of a legal expert, where appropriate. It is the responsibility of the Parties to ensure compliance of the provisions of this Partnership Agreement with the Project Contract and the applicable legal framework. Neither the FMO nor any person acting on its behalf can be held responsible in connection with any use or re-use made of this template partnership agreement.
2
PREAMBLE:
IT IS AGREED AS FOLLOWS:
Article 1 – Scope and objectives
1. This Partnership Agreement (hereinafter referred to as the “Agreement”) defines the rights and obligations of the Parties and sets forth the terms and conditions of their cooperation in the implementation of the Project [in case of Annexes to the Agreement:, as described and defined in Annex[es] [number] (hereinafter referred to as the [specify the relevant documents: e.g. the “Terms of Reference” or “Work Plan” or “List of activities” and/or other])].
2. The Parties shall act in accordance with the legal framework of the [EEA/Norwegian] Financial Mechanism 2014-2021, namely with the Regulation on the implementation of the [EEA/Norwegian] Financial Mechanism 2014-2021 (hereinafter referred to as the “Regulation”). The Parties expressly acknowledge to have access to and to be familiar with the content of the Regulation.
3. Any Annexes to this Agreement constitute an integral part of the Agreement. In case of inconsistencies between the Annexes and the Agreement, the latter shall prevail.
In general terms, it is recommended to include introductory provisions referring to the scope and objectives of the EEA/Norwegian Financial Mechanism Programme as well as the general aims of the Project, highlighting, if deemed appropriate, any background information that might be relevant to the partnership.
Since several provisions of the Partnership Agreement will make reference to the Programme (as defined and agreed upon in the Programme Agreement entered into between the National Focal Point and the Donor(s)) as well as to the Project (as agreed between the Programme Operator and the Project Promoter in the framework of the Project Contract), a definition of what is meant by both the Programme and the Project should be foreseen so as to ensure clear cross-references throughout the Partnership Agreement.1
As explained below under Article 3, the main activities to be carried out, in particular by the partner, including any activities of the promoter that the partner is dependent on for the performance of its tasks should be identified.
This could, for example, take the form of a work plan with indicative timings and budgets associated to the different activities, to be annexed to the Agreement. Where it is not possible to draw up a comprehensive work plan, a simple list of activities by the partner is still useful. Containing the list of activities in an Annex that can be reviewed on a regular basis and modified following a simplified procedure is considered beneficial.
3
Article 2 – Entry into force and duration
1. This Agreement shall enter into force on the date of the last signature by the Parties. It shall remain in force until the Project Partner has discharged in full its obligations towards the Project Promoter as defined in this Agreement.
Article 3 – Main roles and responsibilities of the Parties
1. The Parties shall take all appropriate and necessary measures to ensure fulfilment of the obligations and objectives arising out of this Agreement.
2. The Parties shall carry out their respective obligations with efficiency, transparency and diligence. They shall keep each other informed about all matters of importance to the overall cooperation and the implementation of the activities to be performed. They shall act in good faith in all matters and shall, at all times, act in the interest of the Programme and the Project.
3. The Parties shall make available sufficient and qualified personnel, which shall carry out their work with the highest professional standard. While carrying out the assignment under this Agreement, the personnel and entities engaged by either Party shall comply with the laws of the respective countries.
These provisions will vary depending on the precise involvement of the Project Partner. The aim is to ensure that the parties are aware of what is expected of each other, by when and the corresponding costs/budgets.
They should include general provisions about the relations between the parties but should also, to the extent possible, identify the main activities to be carried out, in particular by the partner, including any activities of the promoter that the partner is dependent on for the performance of its tasks.
This could, for example, take the form of a work plan with indicative timings and budgets associated to the different activities. Where it is not possible to draw up a comprehensive work plan, a simple list of activities by the partner should be used. Containing the list of activities in an Annex that can be reviewed on a regular basis and modified following a simplified procedure would be beneficial.
The Partnership Agreement should be in line with the Project Contract, however it will not always be possible for the Project Partner to have a complete overview of the Project Contract. It is therefore advisable to avoid references to the Project Contract and include, as far as possible, all the information that is necessary for the implementation of the Project Partner’s tasks. Provisions allowing for the amendment of the Partnership Agreement where this is necessitated due to a change in the Project Contract should also be included.
The below provisions are only examples of provisions that can be included under this Article.
4
4. Whenever in the performance of their assignments under this Agreement the Parties’ personnel are on the premises of the other Party, or at any other location in the other Party’s country on request of such Party, that Party shall ensure that such premises and locations comply with all applicable national health, safety and environmental laws and standards. The Parties shall take all necessary precautions to prevent the occurrence of any injury to persons or damage to the property of the other Party in connection with the implementation of the Project. [Further provisions on safety and other relevant personnel-related issues may be included here]
5. [Each Party shall appoint a Project Manager who shall have operational responsibility for the implementation of the Project as well as serve as contact point for all exchanges of communication, documentation and materials between the Parties].
Article 4 – Obligations of the Project Promoter
1. The Project Promoter is responsible for the overall coordination, management and implementation of the Project in accordance with the regulatory and contractual framework specified herein. It assumes sole responsibility for the successful implementation of the Project towards the Programme Operator.
2. The Project Promoter undertakes to, inter alia:
(a) ensure the correct and timely implementation of the Project’s activities; (b) promptly inform the Project Partner on all circumstances that may have a negative
impact on the correct and timely implementation of any of the Project’s activities, and of any event that could lead to a temporary or final discontinuation or any other deviation of the Project;
(c) provide the Project Partner with access to all available documents, data, and information in its possession that may be necessary or useful for the Project Partner to fulfil its obligations; in cases where such documents, data and information are not in English, it shall provide an English translation thereof when so requested by the Project Partner;
(d) provide the Project Partner with a copy of the signed Project Contract, including any subsequent amendments thereof as of their entry into force;
(e) consult the Project Partner before submission of any request for amendment of the Project Contract to the Programme Operator that may affect or be of interest for the Project Partner’s role, rights and obligations hereunder;
(f) prepare and submit in a timely manner to the Programme Operator [specify what should be submitted: interim project reports or other] in connection with the payment claims, in compliance with the Programme Agreement and the Project Contract so as to meet the payment deadlines towards the Project Partner as stipulated in this Agreement;
(g) transfer to the Project Partner’s nominated bank account all payments due by the set deadlines;
(h) ensure that the Project Partner promptly receives all assistance it may require for the performance of its tasks;
(i) [list other obligations, if applicable].
5
Article 5 – Obligations of the Project Partner
1. The Project Partner is responsible for the performance of the activities and tasks assigned to it in accordance with this Agreement [in case of Annexes: and Annex[es] [number] (specify the relevant documents: hereinafter referred to as the “Terms of Reference” or “Work Plan” or “List of activities”].
2. In addition to the above obligations, the Project Partner shall:
(a) promptly inform the Project Promoter on relevant circumstances that may have an impact on the correctness, timeliness and completeness of its performance;
(b) provide the Project Promoter with all information necessary for the preparation of [any reports due by the Project Promoter to the Programme Operator] within the deadlines and according to the reporting forms set by the Project Promoter;
(c) immediately inform the Project Promoter of any cases of suspected or actual fraud, corruption or other illegal activity that come to its attention, at any level or any stage of implementation of the Project;
(d) keep all supporting documents regarding the Project, including the incurred expenditure, either in the form of originals or in versions certified to be in conformity with the originals on commonly accepted data carriers, for at least [specify number of years (no less than three)] from the [FMC/NMFA]’s approval of the final programme report;
(e) provide any bodies carrying out mid-term or ex-post evaluations of the Programme, as well as any monitoring, audits and on the spot verifications on behalf of the [EEA/Norwegian] Financial Mechanism any document or information necessary to assist with the evaluation;
(f) effectively participate in promoting the objectives, activities and results of the Financial Mechanism as well as the Donor(s)’s contribution to reducing economic and social disparities in the European Economic Area;
(g) [list other obligations, if applicable].
Article 6 – Project budget and eligibility of expenditures
1. The detailed total Project budget, the budget share of [each Party/the Project Partner] as well as the allocation of the budget, amongst the activities to be performed by [each Party/the Project Partner] is fixed in Annex[es] [number] [specify the relevant documents].
Refer to any Annexes referred to in Article 1.
Financial arrangements are a crucial element to agree upon in the Partnership Agreement. These must include the total amount that the partner may claim from the project budget and, where possible, the allocation of the total amount amongst the activities to be performed by the partner. This can be done in conjunction with a work plan, as mentioned above. Where a detailed breakdown of the allocation to the partner is provided, it is recommended that this is contained in an Annex that can be reviewed on a regular basis and modified following a simplified procedure.
6
2. Expenditures incurred by the Project Partner must be in line with the general rules on eligibility of expenditure contained in the Regulation, specifically Chapter 8 thereto.
3. Indirect costs shall be claimed by the application of the following method: [specify the method in accordance with Regulation Article 8.5.1(a), (b), (c) (d) or (e)].
Expenditures incurred by partners must be in line with the general rules on eligibility of expenditure contained in the Regulation, specifically Chapter 8 thereto:
Article 8.2 contains certain general principles on eligible expenditures, for example, that all costs should be “proportionate and necessary for the implementation of the project”.
Article 8.3 contains the main categories of eligible direct expenditures (specific expenditures directly linked to the implementation of the project). In addition, the Programme Agreement concluded between the Donor State(s) and the National Focal Point may allow for additional expenditures to be eligible, or impose further limitations on eligibility of expenditures. These must also be reflected here. Where the project is implemented pursuant to a call for proposals, regard should also be had to any specific provisions listed in the call documents.
Article 8.7 contains certain categories of expenditures that are not eligible.
The Partnership Agreement can either reproduce such provisions, with the appropriate adaptations, or incorporate them by reference.
The Partnership Agreement must contain provisions on the method of calculating indirect costs and their maximum amount. Indirect costs (overheads) are defined in Article 8.5.1 of the Regulation: Indirect costs are all eligible costs that cannot be identified by the Project Promoter and/or the project partner as being directly attributed to the project but which can be identified and justified by its accounting system as being incurred in direct relationship with the eligible direct costs attributed to the project. They may not include any eligible direct costs. Indirect costs of the project shall represent a fair apportionment of the overall overheads of the Project Promoter or the project partner.
Provisions on indirect costs (overheads) should take into account the provisions of Article 8.5 of the Regulation, any limitations set in the Programme Agreement (which may well exclude the eligibility of indirect costs) and, where relevant, the methodology proposed by the Programme Operator in case flat rates are used.
In general, overheads can either be claimed by claiming ‘actual’ indirect costs when the partner’s accounting system is sufficiently analytical (see further Article 8.5.1(a) of the Regulation); or alternatively they can be claimed by the application of a flat rate/percentage of the direct eligible costs. Such methodology could be outlined in an Annex to the Partnership Agreement. When the flat rate method is chosen, the actual percentage must be determined in line with the above mentioned methodology set by the Programme Operator. The possibility to claim flat rates does not automatically exclude the possibility to claim indirect costs using the ‘actual indirect costs’ option: the Partner should be given the option to decide the preferred method. Finally, in the case of Project Partners that are international organisations or bodies or agencies thereof, it will be possible to identify indirect costs in accordance with the relevant rules, if any, established by such organisations (Article 8.5.1.(e)).
Please note that different rules on indirect costs apply to research programmes, please consult the Guideline for Research Programmes.
7
Article 7 – Financial management and payment arrangements
1. Payment of the project grant share to the Project Partner shall take the form of [specify the applicable forms of payments: advance payments, reimbursement of incurred expenditure (interim payments) and payment of the final balance].
2. [If an advance payment is foreseen, its maximum amount and the off-set mechanism should be specified here].
3. [If applicable] The advance payment to the Project Partner shall be made no later than [number of working days] of the crediting of the advance payment from the Programme to the Project Promoter’s bank account.
4. Interim payments shall be paid based on [specify how the Project Partner is to claim expenditure from the Project Promoter and if a template shall be used to that effect. If so, the template should be annexed to the Partnership Agreement. If no templates are foreseen, then the provision should specify, with as much detail as possible, the content of the payment claims]. Payment claims shall be submitted to the Project Promoter [specify the monthly frequency or specific deadlines], along with a confirmation from [responsible person within the Project Partner, e.g. Project Manager] that the claimed expenditures are in accordance with the principles and rules set forth in this Agreement.
5. Interim payments to the Project Partner shall, subject to Article [if applicable: provision concerning the verification of the Partner’s expenditure by the Project Promoter], be made within [number of working days from receipt of the Partner’s payment claim or, in case deadlines are specified in paragraph 3, the dates by which the Project Promoter shall transfer the amounts.] [Consider including a provision addressing the consequences of any delays in submitting payment claims by the Project Partner].
6. Payment of the final balance shall be made [specify details].
7. All amounts shall be denominated in [specify the applicable currency].
8. Payments to the Project Partner shall be made to the Project Partner’s bank account denominated in [specify the currency], identified as follows:
The provision of funds to the Project Partner will normally be made in the beneficiary state local currency or in euro in some cases. The reporting currency of incurred expenditure is set by the Programme Operator and will normally be the beneficiary state local currency unless otherwise decided. The conversion exchange rate for establishing incurred expenditure in the local currency is set by the Programme Operator. This will normally follow a methodology whereby expenditure incurred by the partner, in any other currency, shall be converted into the reporting currency according to the valid exchange rate as recorded by the European Central Bank, valid on the day/month in which the expenditure was incurred.
This Agreement should specify which entity will bear the exchange rate risk.
8
[specify bank account details of the Project Partner: name of bank, address of branch in full, exact designation of account holder, full account number including IBAN and BIC/Swift codes].
9. Payments shall be deemed to have been made on the date on which the Project Promoter’s account is debited.
Article 8 – Proof of expenditure
1. Costs incurred by the Project Partner shall be supported by receipted invoices or alternatively by accounting documents of equivalent probative value.
2. Proof of expenditure shall be provided by the Project Partner to the Project Promoter to the extent necessary for the Project Promoter to comply with its obligations to the Programme Operator.
3. When required, proof of expenditure shall take the following form: [see different options below].
4. Indirect costs claimed by the application of a flat rate do not need to be supported by accounting documents.
Costs incurred by a Project Promoter or Partner shall be supported by receipted invoices, or alternatively by accounting documents of equivalent probative value (Article 8.12.1 of the Regulation). An audit report or a report by a competent public officer shall also be accepted as sufficient proof of expenditure incurred for project partners whose primary location is outside the Beneficiary State, as per paragraphs 3 and 3 of Article 8.12. These reports are intended to facilitate proof of expenditure; however, in the case of partnerships that do not involve significant expenditures on the partner’s side, it is always possible (and may be simpler) to provide original documents as proof (e.g. receipted invoices, payroll extracts, etc). When this option is chosen, it is important to specify in advance if these have to be translated into the promoter’s national language.
When the report option is used, please be aware that the cost of obtaining the report is considered eligible expenditure and should therefore be included in the budget allocation for the partner.
Please note that this does not mean necessarily that all these accounting documents (the proof of expenditure) are required to be submitted each time a payment claim is submitted. The Regulation does not require that 100% of proof of expenditure is submitted to the Programme Operator. The Regulation requires the Programme Operator to set up systems and control mechanisms which ensure a sufficient level of control over the expenditure that is incurred by Project Promoters and Partners. If chosen, this option should be aligned to the proof of expenditure system that is applicable to the expenditure incurred by the Project Promoter. The Regulation provides for an approach where it should be considered sufficient that the Partner can make available the original accounting documents (the proof of expenditure) when required to do so, e.g. in case of a monitoring visit or an audit. These aspects need to be regulated in the Partnership Agreement with as much detail as possible.
9
Article 9 – Progress and financial reports
Article 10 – Audits
Article 11 – Procurement
1. National and EU law on public procurement shall be complied with by the Parties at any level in the implementation of the Project.
2. The applicable procurement law is the law of the country in which the procurement is being carried out.
Article 12 - Conflict of interest
1. The Parties shall take all necessary measures to prevent any situation that could compromise the impartial and objective performance of the Agreement. Such conflict of interests could arise in particular as a result of economic interest, political or national affinity, family or emotional ties, or any other relevant connection or shared interest. Any conflict of interests which could arise during the performance of the Agreement must be notified to the other Party in writing without delay. In the event of such conflict, the Party concerned shall immediately take all necessary steps to resolve it.
2. Each Party reserves the right to verify that such measures are adequate and may require additional measures to be taken, if necessary, within a time limit which it shall set. The Parties shall ensure that their staff, board and directors are not placed in a situation which could give rise to conflict of interests. Each Party shall immediately replace any member of its staff exposed to such a situation.
Article 13 - Confidentiality
This provision should outline the reporting obligations of the Project Partner, including content and frequency of such reports, as well as a reference to templates, if any. The Project Promoter shall by way of this provision ensure that it receives in a timely manner all the necessary information to comply with its reporting obligations to the Programme Operator.
Provisions on the arrangements for audits on the Project Partners should be established. It is sufficient to refer to Audits to be carried out in line with Chapter 11 of the Regulation. Where the partner is providing proof of expenditure in line with paragraphs 3 and 4 of Article 8.12 of the Regulation, it should be clarified that presentation of the audit report is sufficient for the purpose of financial audits.
Please also refer to the Regulation, Article 8.15.
10
[Please include appropriate provisions addressing protection and disclosure of any confidential information disclosed by the Parties in connection with the partnership agreement.]
Article 14 - Intellectual property rights
[Provisions on the ownership of work, materials or other results produced under the Agreement and the use thereof by the other Party should be included here.]
Article 15 –Liability
[Provisions on liability and limitations thereof (including cases of force majeure) should be mentioned here, as appropriate and taking into account the nature of the activities to be performed.].
Article 16 – Irregularities
1. Irregularities are defined in accordance with Article 12.2 of the Regulation.
2. In case an irregularity has come to the attention of one Party, that Party shall immediately inform the other Party thereof in writing.
3. In cases where measures to remedy any such irregularity are taken by the competent bodies referred to in Chapter 12 of the Regulation, including measures to recover funds, the Party concerned shall be solely responsible for complying with such measures and returning such funds to the Programme. The Project Partner shall, in such cases, return the recovered funds through the Project Promoter.
Article 17 – Suspension of payments and reimbursement
1. In cases where a decision to suspend payments and/or request reimbursement from the Project Promoter is taken by the Programme Operator, the National Focal Point or the Donor State[s], the Project Partner shall take such measures as are necessary to comply with the decision.
2. For the purposes of the previous paragraph, the Project Promoter shall, without delay, submit a copy of the decision referred to in the previous paragraph to the Project Partner.
Article 18 – Termination
1. Termination for convenience by either Party [insert procedures and requirements for termination for convenience by either party, in case this possibility is deemed appropriate].
11
2. Either Party may terminate this Agreement in the event of a breach by the other Party of its obligations [insert procedures and requirements for termination for breach by either party].
3. Furthermore, in case of termination of the Project Contract for any reason whatsoever, the Project Promoter may terminate this Agreement with immediate effect.
4. [Consequences of termination]
Article 19 - Assignment
1. Neither Party shall have the right to transfer their rights and obligations under this Agreement without the prior consent of the other Party.
2. The Parties acknowledge that all assignment of rights and obligations under this Agreement is dependent upon the Programme Operator’s prior consent in accordance with the provisions of the Project Contract [Note: if applicable].
Article 20 – Amendments
1. Any amendment to this Agreement, including its Annexes, shall be the subject of a written agreement concluded by the Parties.
Article 21 – Severability
1. If any provision of this Agreement (or part of any provision) is found by any court, tribunal or other authority of competent jurisdiction to be invalid, illegal or unenforceable, that provision or part-provision shall, to the extent required, be deemed not to form part of the Agreement, and the validity and enforceability of the other provisions of the Agreement shall not be affected.
2. If a provision of this Agreement (or part of any provision) is found illegal, invalid or unenforceable, the Parties shall negotiate in good faith to amend such provision such that, as amended, it is legal, valid and enforceable and, to the greatest extent possible, achieves the Parties’ original intent.
It is highly recommended that the consequences of termination on the parties’ obligations and on the disbursed share of the grant to the Partner are outlined clearly and distinguishing between the different reasons giving rise to termination (for convenience, breach, force majeure, termination of project contract, etc.). Given that the applicable law may not be a common national law of the parties, this will minimise uncertainties and disputes in cases where the agreement is terminated.
12
Article 22 – Notices and language
1. All notices and other communications between the Parties shall be made in writing and be sent to the following addresses:
For the Project Promoter:
[include contact details]
For the Project Partner:
[include contact details]
2. The language governing the execution of this Agreement is English. All documents, notices and other communications foreseen in the framework of this Agreement shall be in English.
Article 23 – Governing law and settlement of disputes
1. The construction, validity and performance of this Agreement shall be governed by the laws of [specify governing law].
2. Any dispute relating to the conclusion, validity, interpretation or performance of this Agreement shall be resolved amicably through consultation between the Parties.
3.
This Agreement has been prepared in two originals, of which each Party has received one.
For the Project Promoter For the Project Partner
Signed in……………… on …………..…. Signed in………… on …………….
[Name] [Name] [Title] [Title]
It is recommended that the Parties agree on an alternative dispute resolution mechanism, such as the referral of the dispute to an arbitral tribunal or to the mediation of an impartial third party (one such party could be the Programme Operator). Please be aware that the costs related to disputes are not eligible under the Project and shall be borne by each Party individually.
Certification of costs claimed by donor partner
This is issued for the certification purposes as required by Article 8.12.4 of the Regulations on the implementation of the Norwegian/European Economic Area Financial Mechanisms 2014-2021 (the Regulations).
We confirm that procedures have been performed in order to provide assurance as to the relevance and conformity with the Regulations, national law and relevant national accounting practices of the costs claimed by the donor project partner.
Project/initiative reference: Fill in
Project/initiative title: Fill in
Donor project partner: Name of project partner
Entity responsible for the certification: Name of entity
Type of entity: Auditor or Competent Public Officer
Start date of incurred expenditure: DD.MM.YYYY
End date of incurred expenditure: DD.MM.YYYY
Actual expenditure1 incurred this period: Fill in
The [Auditor/Competent Public Officer] hereby certifies that:
(i) The costs claimed by the donor project partner are incurred in accordance with the Regulations on the EEA / Norwegian Financial Mechanisms 2014-20212.
(ii) The cost claimed are incurred in accordance with the relevant law and national accounting practices.
(iii) The [Auditor3/Competent Public Officer] has not been involved in the preparation of the relevant financial statements, and is independent of the donor project partner.
For the Auditor/Competent Public Officer
Optional second signature
Name
Signature
Position
Date
1 A breakdown of the costs certified should be provided as an annex 2 Provisions on eligibility of expenditures are stated in chapter 8 of the Regulations 3 Auditor shall be qualified to carry out statutory audits of accounting documents