Of The Grant Contract Between Iceland, Liechtenstein And Norway Members Of The European Economic Area Have Created Financial Instrument Committee And The Ministry Of Finance Of The Republic Of Latvia On Project Preparation Fund Financing

Original Language Title: Par Granta līgumu starp Īslandes, Lihtenšteinas un Norvēģijas izveidoto Eiropas Ekonomikas zonas finanšu instrumenta komiteju un Latvijas Republikas Finanšu ministriju par Projektu sagatavošanas fonda finansēšanu

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/159793

Cabinet of Ministers Regulations No. 449 Riga, 26 June 2007 (pr. No 37 58) on the Grant contract between Iceland, Liechtenstein and Norway members of the European economic area have created financial instrument Committee and the Ministry of Finance of the Republic of Latvia for the project preparation Fund issued in accordance with the Cabinet of Ministers of 14 of the law on equipment the first paragraph of article 3, paragraph 1. Grant Agreement between Iceland, Liechtenstein and Norway members of the European economic area have created financial instrument Committee and the Ministry of Finance of the Republic of Latvia for the preparation of the project financing of the Fund (hereinafter referred to as grant agreement) with these terms are accepted and approved. 2. the Grant Agreement shall enter into force for the period specified in article 9. Prime Minister a. Halloween Finance Minister o. Spurdziņš project is accepted and approved by the Cabinet of Ministers of 26 June 2007, regulations no 449 Grant Agreement between Iceland, Liechtenstein and Norway members of the European economic area have created financial instrument Committee and the Ministry of Finance of the Republic of Latvia on project preparation Fund financing article 1 scope of application 1. This grant agreement between the European economic area financial instrument Committee (hereinafter-the Committee of the financial instrument) and the national central authority determines the rights and obligations of the parties with regard to the implementation of the Fund and to the European economic area (hereinafter EEA) financial instruments 2004-2009 financial contribution to the Fund. 2. Terms and conditions (annex 1), project implementation plan (annex 2) and the structure of the Fund (annex 3) are an integral part of this grant agreement. All references to this grant agreement include references also to its annexes. 3. the funds and project implementation plan (annex 2) amendments should be made subject to the terms and conditions (annex 1) article 4.1 and 4.2. 4. This grant agreement is based on the national managing authorities or financial instrument Committee on 24 July 2006 the submitted grant application information and referred to any other written information provided by or approved by the national managing authority. Article 2 grants 1. Financial instrument Committee in accordance with the terms and conditions (annex 1) 1.2 regulatory framework of article's terms made available to financial grants (grants) leading to a national authority to be used only in a Fund for the financing of the eligible costs. The grant shall not exceed the following amounts: 248 657 euros. 2. The estimated eligible project costs: € 585 074. 3. The estimated total cost of the project: € 585 074. 4. Grant rate does not exceed 42.5% of the total, extreme eligible completed Fund costs. Grant rate during project implementation in any case is not capped. Additional information on funding is a specific project implementation plan (annex 2). 5. The operator's management costs not exceeding 58 507 euros. Article 3 the Fund description the Fund aims to support individual projects the idea of development of the European economic area and of the financial instrument of the Government of Norway bilateral financial instrument in the priority thematic areas and new partnerships with the aim to create new projects, the Fund's overall goal is to strengthen the project quality of the application, the priority thematic areas and to facilitate access to financial instruments offered features. The reference is based on the 24 July 2006 submission and 4 September 2006 and 19 September 2006. correspondence with the national managing authority completed the Fund must include such activities and results: Apakšgrant administration of funds, including the supervision and financial control. Informational events aimed to raise public awareness about the opportunities to apply for grants of the European economic area means the operator is the integration of the public fund, the Government of Latvia provides for co-financing of at least 15 percent of the estimated eligible costs of the project. For more information about the activities and results are included in the project implementation plan (annex 2). Additional information about the structure of the Fund is contained in annex 3. 4. Article 1 of the incidence of expenditure Unless otherwise agreed by the parties, the implementation of the Fund's financial instruments are applied in the Committee of 24 May 2006, approved guidelines for Detailed eligibility requirements. 2. the costs incurred within the Sub-projects incidence a specific structure of the Fund 3 (annex 3). 3. Expenditure incurred before January 9, 2007, are not eligible. 4. expenditure incurred after July 9, 2010, are not eligible. 5. Article 1 of the financial instrument the costs Committee withholds 2.5 per cent of the management costs to the terms and conditions (annex 1) referred to in article 4.4 of the Draft statutory instrument has been approved by the Committee. 2. the cost to the beneficiary countries of the euro, to the following bank account: account holder: Latvian Treasury IBAN: LV96 0000 0000 11657 LACB; Swift/BIC code: LACBLV2X Bank name: Bank of Latvia; Bank address: LV-1050 Riga, KR.Valdemāra Iela 3. Advance payment provisions are defined in the Grant Agreement in annex 3. Article 6 conditions for granting of the gravel 1. Grants shall be awarded in accordance with the following general conditions: any interest earned in the account, which are kept in the apakšgrant funds must include in the request, and the last of the funds to be repaid. 2. before the first payment of the following conditions fulfilled: not applicable 3. before the completion of the Foundation meet the following conditions: not applicable 4. National managing authority shall ensure that the operator shall promptly take the necessary steps to comply with the above conditions. Article 7 obligation after completion of the project after the completion of the Fund's national managing authority shall perform the following specific tasks after the conclusion of the project: not applicable contact information article 8 1 of This grant agreement. The parties and other relevant bodies at the moment of signing the address are the following: the national managing authority: Ministry of Finance of the Republic of Latvia of Ronald Fisher sand Street 1, Riga LV-1919 Latvia phone: + 371 (709) 5535 email: Ronalds.Fisers@fm.gov.lv Committee on financial instruments and financial instruments, the Office : Office of the financial instrument of the European Free Trade Association's Director of the Office of the financial instrument of the Boulevard du Régen 47-48 B-1000 Brussels Belgium phone: + 32 (0) 2 286 1701 fax: + 32 (0) 2 286 1789 email: fmo@efta.int operator: society integration fund of liberty Street 40-39 LV-1050 Riga Latvia telephone: + 371 7281 752 fax: + 371 7078 224 e-mail: info@lsif.lv the cost of the agent: BBVA Avenue des Arts 43 1040 Brussels Belgium 2. each party to the agreement of this grant for the above information changes notify in writing without delay. Article 9 entry into force and duration 1. This grant agreement shall enter into force on the date on which the parties have signed it. 2. the grant agreement shall remain in force for 10 years after the Foundation's statutory date of approval. This grant agreement is drawn up in two originals in the English language.  

Signed _____ _____ _____ signed _____ _____ _____ _____ financial instruments on behalf of the Committee on the national managing authorities named Anders Erdal Irene Krūman State Secretary, President of the terms and conditions of the Fund (grant schemes, programmes, project preparation Fund and the NGO Fund), financed from the EEA financial instrument 2004-2009 Chapter 1 scope, legal framework and definitions article 1.1 field of application these terms and conditions are an integral part of the contract and the gravel is applicable in the implementation of the Fund. 1.2. the legal framework article Grant Agreement read in conjunction with the following documents, which together with the Grant Agreement form the European economic area (hereinafter EEA) financial instruments 2004-2009 legal framework: (a) Protocol 38A of the EEA Agreement, which establishes a financing instrument for 2004-2009; (b) Committee on EEA financial instrument (hereinafter-the Committee of the financial instrument) of 16 June 2004, approved the rules and procedures of the EEA financial instrument 2004-2009 for implementation, adopted by the countries of the European Free Trade Association, in accordance with the amended Protocol 38A article 8 part 2 (hereinafter-rules and procedures); (c) the memorandum of understanding on the EEA financial instrument 2004-2009 implementation, concluded between the European Free Trade Association (hereinafter referred to as EFTA) States and the recipient country. 1.3. definitions article Grant contract referred to General rules, institutions and documents to understand under 1.2. regulatory framework referred to in article. Chapter 2 General principles relating to the implementation of the project 2.1. Article 1 of the cooperation between the Parties shall take all necessary measures to ensure that the obligations and objectives arising from the Grant Agreement. 2. the parties undertake to provide all information necessary to Grant a good contract, and apply the highest degree of transparency and accountability, as well as the principles of good governance, sustainable development and gender equality principles. 3. the Parties shall immediately inform each other of the circumstances that interfere with or to affect the successful implementation of the project. 2.2. Article representation and communication All communications with the Committee of the financial instrument on the Grant contract takes place with the Office of the financial instrument, the financial instrument of the representative Committee in consultation with the national central authority (hereinafter-the managing authority). 2.3. Article managing authorities main duties 1. the managing authority is responsible and reports on General EEA financial instrument 2004-2009 leadership of the recipient country. 2. The managing authority shall be responsible for the implementation of the agreement and Grant: (a) ensure the implementation of the Fund) in accordance with the Grant Agreement; b) take the necessary measures to ensure that the operator is fully undertaken and is able to implement and manage the Fund; (c) the use of gravel) provides only the Foundation and its objectives and subprojects under the approved project implementation plan (annex 2) and any necessary financial contributions, in addition to grants, timely receipt; (d)) provides full compliance with the relevant community, national and regional laws (including, but not limited to, environmental, public procurement and State aid law;) e) provides all of the features that are part of the Fund, only Grant objectives laid down in the Treaty; f) provide appropriate publicity for the Fund financial instruments approved by the Committee on Rules of procedure and article 5.4 and publicity guidelines; g) upon request, provide to the Committee any financial instrument with the implementation of the Fund-related documents and information; h) take all necessary measures to strengthen or change the Fund management structure. 2.4. Article managing authorities carry out monitoring and auditing 1. The managing authority shall be responsible for the supervision of the Fund and its sub-projects. Monitoring is sufficiently complete to allow the managing authority the right to confirm the information that the operator specified by the statements referred to in the Committee approved a financial instrument in the beneficiary country reporting and monitoring guidelines. 2. the managing authority shall ensure that a complete audit trail of all the actors involved, in accordance with the financial instruments approved by the Committee on Rules and procedure 6.1. Article and secure accounting principles and methods. 3. the managing authority shall ensure that an audit of the Fund and its sub-projects is carried out in accordance with audit plan based on financial instruments approved by the Committee on Rules and procedure on article 6.2. If necessary, the managing authority used a respectable and well established audit company services. In addition, the Fund should be included in the existing operator's control and audit procedures. 4. the managing authority shall, in accordance with the financial instruments approved by the Committee on the rules and procedures provided in article 6.2 of the financial instrument to the audit review committee summary relating to the Foundation and its subprojects. The managing authority shall, upon request, provide to the Office of the financial instrument, the financial instrument of the EFTA in Audit Committee or Council of any audit reports, including audit reports from the supreme audit institutions relating to the Fund and its subprojects. 2.5. Article instant messaging for non-compliance and other substantial change in 1. The managing authority shall ensure the effective and prompt investigation of any air or actual fraud or non-compliance. The managing authority in accordance with the financial instruments with guidelines adopted by the Committee on non-conformities shall be notified immediately to the Committee financial instrument of all suspected or actual cases of fraud and non-compliance, as well as on the measures associated with them and are made by the competent authorities. 2. the Parties shall immediately notify each other if they gain any to the Fund and its subprojects initiated or pursued legal action, including, the European Community institutions for the purpose of action or decisions. 2.6. implementation article contract with the operator, 1. The managing authority shall ensure that the applicant is the project signed a contract for the implementation of the Fund. This contract provides that the obligations the managing authority undertaken under this agreement are properly delegated to the operator in such a way that supports this commitment. Where national legislation Grants cannot be paid to the operator, then on the basis of the contract, the beneficiary country shall issue legislation or administrative provisions with similar effect. 2. delegation of Obligations laid down in paragraph 1 of this article, shall in no way affect the obligations of the managing authority and responsibilities under the Grant Agreement. 3. before the first payment of the managing authority has submitted a financial instrument Committee in paragraph 1 of this article, this agreement, or the implementation of legislation for the implementation of standartversij. 4. before the first payment of the Managing Committee of the financial instrument provides the following information on the Fund to significant contracts or legislation: (a) the operator's full legal name; (b) the number of the application (financial instrument desk number) and number of the Fund; (c) the date of entry into force of the Act or the date of issue; (d) information about which contract or standartversij of the Act is applied to the Fund. 5. If the contract or standartversij of the Act has already been sent to the Committee of the financial instrument, paragraph 4 of this article, d) indication is considered as point 3. 6. upon request, the managing authority shall ensure the implementation of the financial instrument Committee agreement or a copy of the legislation along with the English translation. 2.7. Article guarantees representation and the managing authority shall ensure and warrant that the information that it provided or provided or the managing authority, through the submission of a request and the Grant of funding agreement and implementation, are authentic, accurate and complete. 3. cost and relevance of Chapter 3.1. Eligible expenditure article 1 only the expenses that apply in accordance with the financial instruments approved by the Committee on Rules of procedure and article 3.1 of the financial instrument and the Committee of 24 May 2006, the guidelines approved in the Detailed eligibility requirements expenditure, is the basis of EEA financial instrument for funding for 2004-2009. 2. Acceptable in the final request for payment to be received within six months of their eligible expenditure the final date fixed for the Grant in article 4 of the Treaty. The payment request is received at a later date or a financial instrument, which the Committee found to be unacceptable, there is no reason for the cost. 3. the Committee of financial instruments in accordance with the financial instruments approved by the Committee on Rules and procedure article 3.1.3 may extend the period of incidence of expenditure. 3.2. Article 1 of the cost of Gravel cost shall be carried out in accordance with the approved project plan (annex 2), on the basis of the cost of the requests submitted to the paying authority. 2. Before payment, the Committee of the financial instrument has been given to the mid-term review of the project in both electronic and hard-copy, certified by the managing authority and the paying authority in accordance with the financial instruments approved payment of the Committee guidelines and recipient country reporting and monitoring guidelines. Interim report of the project will include at least three calendar months period and is associated with expenses during this time. 3. upon receipt of the required documents, the Committee of the financial instrument make sure that they are correctly filled in and that the cost of the conditions are met. If a single financial instrument, the Committee decides to use the features defined in Chapter 6 of this annex, of the financial instrument the Committee as soon as possible, but not later than two months after the receipt of the withdrawal request designate your payment agent to carry out the cost payment authority. Financial instrument the Committee report to the authority on payment of such costs at the time of the order. 4. If an error has occurred with the cost, which paid a higher amount than requested in accordance with the Grant Agreement, the managing authority at the request of the Committee of financial instruments without a delay reimburse any amount that erroneously paid. If the error is paid less than the amount requested by the Committee of a financial instrument as soon as possible after the discovery of the error cost the missing amount. 5. the financing of the costs incurred by the proporcionālism principle, that is, the grant rate laid down in article 2 of the Treaty Grants, the Foundation is not exceeded during the implementation. The provisions of this article shall not apply to article 3.4. 6. Financial instruments Committee has fulfilled its relevant costs when it was made and the payment authority has received them in full. 7. If the reimbursement of costs or the suspension is justified for reasons of, or of article 6.1.1.6.2.1 conditions, financial instruments, the Committee may instruct the managing authority that means you can not use any front or all the children covered by these conditions, and management costs, if the conditions apply to the operator's obligations. The managing authority shall ensure that the operator works in accordance with these instructions. 3.3. Article transfer and use gravel 1. the managing authority shall ensure that the paying authority shall, within 15 working days from the receipt of the transfer cost cost operator. Financial instrument Committee by electronic mail to the 15th day of each month must be informed of transfers made in the previous month. In this report the transfer amount, recipient name, fund number, the Office of the financial instrument and the transfer date. 2. the managing authority shall ensure that the operator will open two accounts, one for management costs and one for apakšgrant. 3.4. increase of expenditure Article If fund management costs exceed Grant Agreement Article 2 point 5 in management costs, the managing authority shall ensure that the operator provides the following additional features are available to ensure full implementation of the Fund. Chapter 4 obligations relating to the implementation of article 4.1 of the Fund the Fund following the amendment 1 amendments to the Fund must first be approved in writing by a Committee of financial instruments: (a) the scope of the Fund), targets, goals, or results; (b) the final recipient) grant conditions; (c)) transfer between activities more than 15% of the total Fund; (d) any changes in the Grant's) agreement to annex 3. 2. before submitting the proposed amendment approved by the managing authority and certifying that they are necessary or appropriate to ensure the effectiveness of the Fund. 3. where there is doubt as to the approval of the financial instrument the need for the proposed amendments, in particular amendments relating to the Grant 3. the annex to the Treaty, the managing authority shall consult with the Office of the financial instrument before such amendments take effect. 4. before paragraph 1 of this article of the amendments referred to in the approval or rejection may need a new assessment. 4.2. project implementation plan article review leading authority submitted a revised project plan (annex 2) of the financial instrument, if: (a) the Committee recommends amendments) in accordance with article 4.1 of the financial instrument requires the approval of the Committee, provided that such amendments affect project implementation plans; (b)) change any of the project interim review reporting period set out in the project implementation plan and review the project implementation plan (annex 2) shall be filed no later than 60 days before the first change in the reporting period; or (c)), the Committee of the financial instrument requires an amended Draft of the implementation plan (annex 2), then the amended implementation plan for the project shall be presented no later than 30 days after such a request is sent. 4.3 article purchase special rules and contract awards 1. the managing authority shall ensure that the public procurement principles and procedures laid down in national and Community legislation, shall apply to any Grant implementation level. 2. If the agreement concluded as part of the implementation of the Fund, is beyond those limits, which are determined by national or community public procurement, or outside the applicable public procurement law, the scope of the managing authority shall ensure that the following award of the contract (procedures before the award) and the following treaty provisions comply with the best business practices, including uzskaitamīb, allows you to open and fair competition between potential performers and provides the EEA financial instrument 2004-2009 the optimal use of resources. 3. the managing authority shall ensure that the procurement and contracts shall observe the highest standards of ethics, as well as ensure adequate application of the effective means to prevent illegal or unfair means. No offer, gift, payment or benefit of any kind directly or indirectly are or could be considered illegal or unfair means, for example, as an incentive to grant the right to enter into or perform public contracts or the consideration of public contract award or performance of the contract, will not be accepted. 4. the managing authority shall ensure that the contract award and performance of contracts of the storage and issue of documentation at the request of the Committee of the financial instrument. 4.4 article reporting in accordance with the financial instruments approved by the Committee of the beneficiary country reporting and monitoring guidelines, the managing authority shall ensure the mid-term review of the project, the annual progress report of the project and the project's final report and submitted to the Office of the financial instrument. Chapter 5 external monitoring and auditing 5.1. Article supervision by the Committee of financial instruments a financial instrument the Committee can monitor the implementation of the Fund and its apakšprojeket and progress to ensure compliance with the Grant Agreement. 5.2. Article Audit carried out by the Committee of financial instruments financial instruments in accordance with the Committee's rules and procedures approved article 6.4 a financial instrument, the Committee may at any time carry out their audit and inspection Fund and its sub-projects in its implementation. 5.3. the article by EFTA in Audit the Audit Council shall, in accordance with the financial instruments approved by the Committee on the rules and procedures of article 6.3 of the EFTA in Audit Council may at any time carry out an audit of the Fund and its sub-projects in all its introduction. 5.4 article availability 1. the managing authority shall ensure that the Committee of the financial instrument, the financial instrument for the Office or anyone authorised to perform tasks on their behalf, as well as the EFTA in Audit Council upon request is immediate, full and unimpeded access to all the information, documents, individuals, public or private places or objects which affect the Grant Agreement. Such access is subject to limitations applicable under the law of the beneficiary country. 2. the managing authority shall ensure that the above proxies representatives spend the staff and provide the necessary assistance to them. A request under this paragraph is sent at least two weeks before the scheduled visit. 5.5. external monitoring responsibility article and audit set out in this chapter shall in no way release the managing authority of the obligations laid down in the Grant Agreement for the Fund and its subproject monitoring, financial control and audit. Chapter 6 termination (suspension) and reimbursement of costs article 6.1 suspension (suspension) 1. Financial instruments the Committee may decide to stop (suspend) the cost of gravel, if: (a) costs not met conditions in accordance with article 3.2; (b) reliable information indicates that the implementation of the Fund or progression does not match the project implementation plan (annex 2) or are not in accordance with the Grant Agreement; (c) the review laid down in article 4.4, or any other required information are not provided or contains incomplete information; (d) have limited access to required in section 5; (e) the financial management of the Fund has not been in accordance with internationally accepted accounting principles; (f) becomes aware of a hint or actual non-compliance or fraud or if cases not properly reported, they are not properly investigated or corrective measures have not been taken; (g) the implementation of the Fund is not in accordance with Community law; (h) significant change in circumstances occurs, giving rise to significant ground Grant, contract, or contribution to the Fund from the EEA financial instrument 2004-2009; (i) becomes aware of any fact misrepresentation in any information in the field provided or the managing authority provided its name and which directly or indirectly affect the Grant Agreement; (j) the percentage obtained by payment institutions specified in the bank account is not listed under the financial instrument for the Payment of the Committee approved guidelines 3.2. Article; (l) adjustment of the gravel is required to comply with the Grant Agreement for a specific grant rate or the requirements of the financial instruments approved by the Committee on rules and procedure in article 3.2; or (l) managing authority fails to fulfil any other obligation under the contract of the gravel. 2. the Committee of the financial instrument (postponed) end payments if any of the paragraph 1 of this article, b), (e) or (g)) the following) refers to any of the subprojects and The operator has not complied with the managing authority and the Committee of the financial instrument the requirements to take the appropriate and necessary measures to solve such gaps and further loss of funds. The cost of the termination (suspension), based on the deficiencies are sub-projects must be proportionate to the nature and extent of gaps. 3. If possible, the managing authority provides an opportunity to express their views before the Committee on financial instruments, shall take a decision to stop (suspend). Decision on cost (the suspension) should be based, and with immediate effect. The managing authority shall notify as soon as possible, but not later than seven working days from the date of adoption of the decision. 4. the managing authority at any time to produce the documents or other evidence that the paragraph 1 of this article a) to l) bottom condition no longer apply or do not justify the costs of suspension (suspension), and request a financial instrument the Committee to review its decision on the suspension of payments. 5. If the financial instrument, the Committee finds that the conditions laid down in paragraph 1 of this article, (a) to (l))) no longer apply or do not justify the costs of suspension (suspension), it shall take a decision to continue the cost. 6.2. Article 1 of the refund. If a serious non-compliance with the Grant Agreement, or if a suspension of payment is not feasible or foreseeable that it has insufficient financial instrument Committee after consultation with the managing authority in order to reach a solution, may decide to request a refund, if any of the conditions laid down in article 6.1 (b)) to l), or, if applicable, article 6.1.2, might decide to request the repayment of funds planned or paid to the final beneficiaries, in accordance with paragraph 2 of this article. 2. the Committee of the financial instrument is not required to repay the funds lost or incorrectly sub-projects means, if the managing authority that such loss or disclosure not yet it failed or the operator's negligence, or due to the failure to fulfil obligations and the managing authority and the operator has taken all reasonable measures for the recovery of such funds. 3. before this article referred to in paragraph 1 of the decision, of the financial instrument the Committee notify the managing authority of its intention to request a refund. The notice shall set out the reasons for the proposed action. The managing authority 45 working days from the date of communication can provide any documents relating to the decision. 4. At any time before the decision to request a refund of the managing authority and of the financial instrument the Committee may engage in dialogue with the aim of ensuring that the decision is based on precise and correct facts. 5. The managing authority is notified of the decision referred to in paragraph 1 of this article as quickly as possible, but no later than 7 business days from the date of the decision. The notice shall set out the reasons. 6. within three months of the financial instrument the Committee referred to in paragraph 1, the managing authority of the decision, subject to the exceptions set out in paragraph 8 of this article, shall repay the financial instrument Committee the amount requested in accordance with the description provided in the decision. 7. the managing authorities for repayment of the financial instrument the Committee is independent of the operator or the final recipient's repayment. 8. where the operator is a private company and the managing authority show that it has taken and shall take appropriate measures to ensure the recovery of monies disbursed accordingly from the authorities, the financial instrument, the Committee may decide to grant the managing authority for a period of up to one year to make the repayment of the funds requested. In this case, the financial instrument, the Committee may also decide to finance up to 50% of eligible costs for legal services related to the recovery of the operator. 9. If the managing authority to fulfil the financial instrument the Committee back the request or in the event of a dispute concerning repayment requests that cannot be resolved in accordance with article 7.1, the parties may bring an action in the Court of first instance of Oslo Oslo Tingret financial instruments in accordance with the Committee's rules and procedures approved article 1.7. 6.3. Article general cost termination 1. Financial instrument Committee after consultation with the managing authority with the aim of finding a solution can stop payments if: a) information or documents acquired by the Committee of the financial instrument or provide it, point to the systematic or widespread shortcomings in relation to the EEA financial instrument 2004-2009 financial contribution to the management of the recipient country; or (b)), the managing authority to fulfil the request of refund associated with any kind of assistance in the beneficiary country for the project, financed from the EEA financial instrument 2004-2009. 2. the procedure laid down in article 6.2 to 5., are applicable, mutatis mutandis, with respect to the cost. 3. If paragraph 1 of this article a) prescribed in paragraph situation directly related to this Fund, the financial instrument, the Committee may apply the procedure of article 6.1. Chapter 7 final provisions 7.1. Article dispute resolution the parties waives any right to bring any dispute related to the Grant Agreement, any national or International Court and agree to resolve such dispute by compromise. This article shall be without prejudice to article 9, paragraph 6.2. 7.2 article discharge 1. any evaluation of the Fund made before or after the approval of the financial instrument, the Committee in no way diminishes the responsibility of the managing authority to check and confirm the accuracy of the documents and information which constitute the basis of the contract of the gravel. 2. nothing in the agreement Grants shall not be considered, subject to the Committee of the financial instrument or financial instruments to the Office any responsibility for monitoring by the Foundation or its sub-projects, execution, completion or operation. 3. the Committee of the financial instrument does not assume any risk or liability for any loss, damage or other possible adverse effects caused by the Foundation or its subprojects, including, but not limited to non-compliance with the Fund and its sub-project planning, other project (s) that may affect the Fund or the Fund can influence whether public dissatisfaction. The managing authority full and exclusive responsibility to devote due attention to such questions. 4. neither the managing authority, neither the operator nor the ultimate beneficiary or any other person may additionally for the Grant contract, receive a financial instrument Committee for further financial aid or help in any form to the Foundation. 5. Neither the European Free Trade Association, or its The Secretariat, including the Office of the financial instrument, its officers or employees, nor financial instrument Committee, its members or their alternates, nor the EFTA States shall not be held liable for any losses or damages that are directly or indirectly related to the Grant contract the managing authority incurred or beneficiary State, the operator, the final recipient or any third party. 7.3. the language of article 1 all communication takes place in English. 2. If the original documents are not available in the English language, the documents added complete and accurate translation in English. 3. The managing authority shall be responsible for the accuracy of the translation and the possible consequences that may arise from inaccurate translation. Project implementation plan of the European economic area (hereinafter EEA) financial instrument for 2004-2009 Government of Norway bilateral (Norway), the financial instrument for the 2004-2009 fund structure 1. Sub-project description 1.1. eligible activities (sub, where provided); The Fund will provide support for individual projects in all EEA and Norway financial instruments in priority areas and their respective subpriority (except for the Schengen priority) in the Republic of Latvia. In particular, the Fund will support innovative ideas in the development of the EEA and Norway use of derivatives; complex project idea development and complex project preparation, and formation of new partnership, intended for the preparation of the application projects. 1.2. Eligible applicants: applicants are eligible for public administration or local government authorities and their institutions or agencies; State or municipal educational institutions established; national scientific institutions; State agencies; society; Foundation or corporation which is founded and registered in the Republic of Latvia as legal persons. 1.3. the Subproject on the minimum and maximum grant amount: minimum grant amount is 5000 euros. The maximum grant amount is 20 000 euro. 1.4. the subproject: subproject duration minimum duration is not defined. The implementation of the sub-projects to be completed no later than the day when Latvia will complete the second open contest. 1.5. co-financing: gravel from the Fund may not exceed 90% of the total eligible cost of the subproject. The remaining subprojects costs beneficiary must provide or obtain from other resources. 1.6. The eligible costs, including in-kind contributions: the cost is relevant, if they are justified, necessary and appropriate, and affect the long term impact of sub-projects and planned results. In addition, eligible costs must be adequately explained and, in accordance with the EEA financial instrument Committee (hereinafter-the Committee of financial instruments) of 24 May 2006 on the approval guidelines Detailed eligibility requirements. The main types of eligible costs are salaries, travel and subsistence allowance of money, external expertise and administrative expenses. Contributions in kind, as long as they are in accordance with the financial instruments of the Committee on 24 May 2006, approved the guidelines for the Detailed eligibility requirements expenditure 2.2., shall apply. Contributions in kind can create up to 5% of the total eligible cost of the subproject. 2. Sub-project selection 2.1. Institutional structure: the society integration Fund Board should act as responsible for the operations and Management Committee must approve or reject a project. Society integration Fund Council is appointed and confirmed by the Cabinet of Ministers, and it consists of line ministries, regional and non-governmental organization community in Latvia. The President of the Council shall choose the members of the Council. The Evaluation Commission, which was created by the society integration fund, the Council will carry out a qualitative assessment of the application for the grant. The Evaluation Commission is the authorities representatives and external experts. Society integration fund Director approves an application form and a standard grant agreement with annexes. Society integration fund Director is the signatory on behalf of the Foundation, and the society integration fund Director responsible for the funds allocated to the State budget. Society integration fund Director signed grant agreements with final beneficiaries. 2.2. selection process and procedures: grant Funds availability be advertised in one open competition. The operator must consider and evaluate all submissions in accordance with the administrative and eligibility criteria. The application of qualitative and financial assessment must be made of the Evaluation Commission. Evaluation the Commission in assessing the submission of a qualitative and financial aspects, may invite external experts. Evaluation the Commission must draw up a list of the project saaranžēt to the society integration fund, the Council would approve the projects. The operator must inform applicants whose projects have been rejected, the reasons for rejection. The applicant that the application is based on the administrative norīdīt or eligibility criteria, you can request the operator to review his decision. The applicant for such a request must be submitted within 10 working days of receipt of the rejection and the reasons for the review of the decision. 2.3. selection criteria: selection and evaluation criteria include the administrative, compliance, qualitative and financial checklist where each criterion points. Qualitative and financial assessment criteria aim to assess the applicant's ability to implement the project, its complexity or level of innovation, significance and the economic feasibility of the project. In considering the administrative and eligibility criteria, the operator may ask the applicant to provide additional information or clarification. The application of qualitative evaluation, including specific budgets, must take place in accordance with the scale set out in the evaluation criteria. Evaluation the Commission shall assess the projects, grouping them by two months after the date of submission. 2.4. A procurement contract and the availability of funds (including competitions, the duration of the contest and the approximate volume): Grants from the Fund should be assigned to individual projects, which are planned to be submitted to the second open contest in Latvia. The operator must arrange one open submission contest sub-projects. Contest duration may not be less than two months. 3. the operator shall establish surveillance report and final accounts of beneficiaries receiving order operator's supervisory Department should be responsible for supporting the sub-project monitoring and control (regular communication with all recipients for appropriate information and monitoring visits, the examination of the request for financing, progress, technical and financial reports). The operator's financial control Department should be responsible for providing advice on financial and accounting issues, which is the programming Department, the Secretariat of the Council of the SIF. The financial control Department of the subprojects in the life cycle by relevant inspection (grant agreement, financial reports, and feature requests). The operator's internal audit department is to take the final recipient audit implementation of the sub-projects at random during or after their completion. The final recipient of the reports must be prepared in accordance with the format specified in the contract. The final recipient must submit quarterly progress reports and the final report. The quarterly report should contain information on the progress made and the payments made. The final report should be included in the activities and payment documentation. 4. the operator shall submit the report to the national managing authority, the operator shall submit the quarterly interim reports of the project the national managing authority. The operator's accounting department to be responsible for the project's mid-term review in preparation of the part relating to the funds requested, on the basis of contracts signed or approved reports and submit these payments. 5. The cost of the operator (the cost) 5.1. Advance payment scheme: 10% of the management costs will be paid in advance, which will be withheld, when 80% of management costs will be paid. 5.2. the following costs: the costs incurred will be paid by the mid-term review of the project approval. Management costs incurred after the balance of the payment will be made after the approval of the final report of the project. 6. the cost to the operator (apakšgrant resources) 6.1 an advance payment scheme: 80% of the apakšgrant funds available for public tender, the operator must be paid out within 10 working days after the conclusion of the contest. The further the cost of funds to apakšgrant in advance in accordance with the plan of implementation of the project and request the interim reports of the project. Payment scheme must provide sufficient funds for the timely transfer of final beneficiaries, regardless of whether they are advance payments, further contributions or payments. 6.2. Further cost: none. 7. The cost of the final beneficiary 7.1. Eligible costs eligible date: subproject costs become applicable as from the date on which the operator has made a decision on the grant award. 7.2. Advances and cost: the final beneficiaries to receive the first payment of the advance (25% of the grant) on signature of the contract. In addition to the 55% of the grant may be paid in several installments of the advance, for each quarter of the scheduled implementation in equal shares, by quarter interim report. Balance of payment (20% of the grant) is payable after the operator has confirmed in the final report. If the subproject takes three months or less, the interim report is not required, the initial advance payment can be up to 80% and the remaining amount of the grant will be paid after the statutory approval. 8. Publicity 8.1 the operator level: publicity measures must be in accordance with the financial instruments of the Committee approved the guidelines with the publicity and publicity plan submitted. They must ensure transparency, providing potential applicants adequate and high-quality information on the whole of the EEA grants, as well as the need to increase public awareness and disseminate information on the Fund. Publicity measures should focus on wider public information concerning the financial instrument for generating opportunities and promoting the project idea development. Information and publicity activities to continue during operation to ensure the availability of information on the available funds. Before and during the competition, advertisements must be published in the newspapers of the Republic of Latvia (in Latvian and in Russian). Tender advertisements must be in accordance with the financial instruments the Committee approved guidelines for public tender certain principles. Electronic informational sheet must be drawn up for the contest and seminars. The operator must arrange two to three informational seminars in Riga, depending on the number of participants, and at least one seminar in each region. List of approved grant application must be published and regularly complement operator and the national managing authority website on the Internet. 8.2. the level of subprojects: the final beneficiaries to ensure that the EEA financial instrument and the financial instruments to be given the appropriate attention and expressed appreciation of the match. The following publicity measures must be included in the reports and publications of sub-projects with sub-project and related public events.


EEA Financial Mechanism 2004-2009 grant agreement between the FINANCIAL MECHANISM Committee established by Iceland, Liechtenstein and Norway and the Ministry of Finance of the Republic of Latvia, hereinafter referred to as the "Focal point", representing the Republic of Latvia, hereinafter referred to as the "Beneficiary State hereinafter referred to together as" the "parties" for the financing of the "Seed Money" hereinafter referred to as "Facility the" Funds "article 1 scope 1. This grant agreement between the Financial Mechanism Committee and the Focal point lay down the rights and obligations of the parties regarding the implementation of the Fund and the financial contributions from the EEA Financial Mechanisms 2004-2009 to the Fund. 2. The terms and conditions (Appendix I) and the Project Implementation Plan (Annex II), and the description of the Fund set-up (Annex III) shall form an integral part of this grant agreement. Any reference to the grant agreement includes a reference to its annex. 3. Modification of the Fund and the Project Implementation Plan can be carried out in accordanc with articles 4.1 and 4.2 of the terms and conditions. 4. This grant agreement is based on information provided by, through, or on behalf of the Focal point to the Financial Mechanism Committee in the application for the grant dated 24 July 2006, and on any other written information provided or confirmed by the Focal point. Article 2 grant 1. The Financial Mechanism Committee shall, subject to the rules stipulated in the legal framework referred to in article 1.2 of the terms and conditions, make available to the Focal point a financial grant (hereinafter referred to as "the grant") to be used exclusively to finance the eligible cost of the Fund. The Grant shall note the amount of EUR 12 248.657.2. The estimated eligible cost of the Fund is EUR 585.074.3. The estimated total cost of the Fund is EUR 585.074.4. The grant rate shall not exceeds 100 26.4 percent of the total, final eligible cost for the completed Fund. This grant rate shall not be exceeded at any point during the implementation of the Fund. Further information on the funding is provided in the Project Implementation Plan (Annex II). 5. The management cost of the Intermediary shall not exceeds 100 EUR 58.507. Article 3 Description of the Fund the purpose of the Fund is to support development of individual projects ideas in the priority areas of the EEA Financial Mechanism and the Norwegian Financial Mechanism and to the establish new partnerships for the purpose of designing new projects, with the overall objective of strenghtening the quality of project applications within the priority areas and facilitating access to the funds provided by the mechanisms. Reference is made to the application, dated 24 July 2006, and with the Focal correspondenc point on 4 September 2006 and 19 September 2006. The completed Fund shall include the following activities and results: Administering the re-granting of funds, including the monitoring and financial control. Publicity aimed at increasing public awareness of the measure about opportunities to apply for funds from the EEA grants. The Intermediary is the Society Integration Foundation. The Latvian Government shall provide at least 15 percent of the estimated eligible project cost. Further information on activities and results is provided in the Project Implementation Plan (Annex II). Further information on the Fund's set-up is provided in Annex III. Article 4 Eligibility of the expense Unless otherwise agreed by 1 by the parties, the Provision of Detailed Expenditure Eligibility-24 May 2006 shall be dated applicable to the implementation of the Fund. 2. Eligibility of expenditure incurred under the sub-projects is stipulated in Annex III.3. Expenditure incurred before of 9 January 2007 are not eligible. 4. Expenditure incurred after 9 of July 2010 are not eligible. Article 5 Disbursement 1. The Financial Mechanism Committee may retain up to 2.5% of the management cost until the Project Completion report referred to in article 4.4 of the terms and conditions has been approved by the Financial Mechanism Committee. 2. Disbursement shall be made in EURO to the to the following bank account of the Beneficiary State: Account Holder: the Treasury of the Republic of Latvia's IBAN: LV96 Swift/BIC Code 0000 0000 11657 LACB: LACBLV2X Bank name: the Bank of England Bank address: LV-1050 Riga, KR. Valdemar Street 3. Provision on advance payments are stipulated in Annex III to the grant agreement. Article 6 conditions for the awarding of the grant 1. The grant is awarded under the following general conditions Any interest earned on the account holding the funds for re-granting shall be reported in the final payment claim and reimbursed. 2. The following conditions shall be fulfilled prior to the first disbursemen: Not applicable 3. The following conditions shall be fulfilled before the completion of the Fund: Not applicable 4. The Focal point shall ensur that the Intermediary takes in a timely manner the cessary steps to fulfill the conditions described above. Post completion article 7 obligation After the completion of the Fund, the Focal point shall comply with the following specific post completion of obligation: Not applicable contact information article 8 1. The addresses of the parties to this grant agreement and others relevant bodies at the time of signing with as follows: Focal point: the Ministry of Finance of the Republic of Latvia At: Ronald Fiser sand str. 1 Riga LV-1919 Latvia telephone: + 371 (709) 5535 E-mail: Ronalds.Fisers@fm.gov.lv Financial Mechanism Committee and the Financial Mechanism Office: the Financial Mechanism Office European Free Trade Association At: Director of the Financial Mechanism Office Boulevard du Régen 47-48 B-1000 Brussels Belgium telephone: + 32 (0) 2 286 1701 (general) Telefax: + 32 (0) 2 286 1789 Email: fmo@efta.int Intermediary: Society Integration Foundation Brivibas Street 40-39 LV-1050 Riga Latvia telephone : + 371 7281 752 Fax: + 371 7078 224 Email: info@lsif.lv Disbursemen agent: BBVA Avenue des Arts 43 1040 Brussels Belgium 2. Changes of the above contact information shall be given in writing without delay by each party of the undu to this grant agreement. Article 9 Entry into force and duration 1. This agreement shall enter the grant into force on the date of the last signature of the parties. 2. This grant agreement in force shall remain until 10 years have elapsed after the date of the acceptance of the Project Completion report. This grant agreement is drawn up in two originals in the English language.


Signed in the _____ ____ on ____ _____ Signed in _____ _____ on _____ ____ For the Financial Mechanism Committee For the Focal point Anders Erdal Irene Krūman Chairman State Secretary Annex 1 terms and conditions for funds (Block Grants, Seed Money Program, Facility and NGO funds) financed by the EEA Financial Mechanisms 2004-2009 Chapter 1 scope, Legal Framework, AND the Definition of article scope 1.1 these terms and conditions form an integral part of the grant agreement and shall apply to the implementation of the Fund. Article 1.2 Legal Framework the grant agreement shall be read in conjunction with the following documents which, together with the grant agreement, the legal framework of constitut the EEA Financial Mechanisms 2004-2009: (a) Protocol 38 to the EEA Agreement, establishing the EEA Financial Mechanisms 2004-2009; (b) the rules and procedures for the implementation of the EEA Financial Mechanism 2004-2009 adopted by the EFTA States in accordanc with article 8 (2) of Protocol 38, as amended; (c) the memorandum of Understanding on the Implementation of the EEA Financial Mechanism 2004-2009, entered into between the EFTA States and the Beneficiary State. Article 1.3 Definition in General terms, institutions and documents referred to in the grant agreement shall be understood in accordanc with the provision of the legal framework referred to in article 1.2. Chapter 2 General principles related to the Implementation of the FUND article 2.1 Co-operation 1. The Parties shall take all appropriate and does not measure to ensur-cessary fulfilmen of the obligation and objective of the arising out of the grant agreement. 2. The parties agree to provide all the information, not for the good functioning of cessary the grant agreement and to apply the highest degree of transparency and accountability as well as the principles of good governance, sustainable development and gender equality. 3. The Parties shall notify each other promptly of any of that circumstanc interfer or threaten it interfer with the successful implementation of the Fund. Article 2.2 Representation and communication All communications to the Financial Mechanism Committee in regards to the grant agreement shall be directed to the Financial Mechanism Office, which generally represent the Financial Mechanism Committee towards the Focal point. Article 2.3 the Changing responsibilities of the Focal point 1. The Focal point is responsible for accountabl and the overall management of the EEA Financial Mechanism 2004-2009 in the Beneficiary State. 2. The Focal point shall be responsible for the implementation of the grant agreement and shall: (a) ensur that the Fund is implemented in accordanc with the grant agreement (b) take all steps to ensur not cessary that the Intermediary is fully committed and able in their implementations and manage the Funds (c) ensur that the grant is used exclusively for the purpose of the Fund and its subproject and according to the approved project Implementation Plan and that any not cessary Financials contributions in addition to the grant is received in a timely manner with (d) ensur that all relevant Community, national and local legislation (including, but not limited to legislation on the environment, public procurement and State aid) shall be fully complied with (e) ensur that all assets forming part of the Fund is used only for the purpose of such as provided for in the grant agreement (f) publicity of the Fund by ensur in accordanc with article 5.4 of the rules and procedures and the Publicity guidelines (g) ensur that the Financial Mechanism Committee ISA upon request provided with all documents and information related to the implementation of the Fund (h) make all the appropriate arrangements for the cessary and in order to strengthen or change the way the Fund is managed. Article 2.4 Monitoring and audit by the Focal point 1. The Focal point shall be responsible for the monitoring of the Fund and its sub-projects. The monitoring shall be thorough enough to enable the Focal point to certify the information provided by the Intermediary in the reports referred to in the Beneficiary State Reporting and Monitoring guidelines. 2. The Focal point shall ensur a complete audit trail in all engaged actors in accordanc with article 6.1 of the rules and procedures and sound accounting principles and methods. 3. The Focal point shall ensur that the audit of the Fund and its sub-projects is conducted in accordanc with the audit plan provided according to article 6.2 of the rules and procedures. If not, the cessary Focal point shall draw upon the services of a reputabl and well established audit company. Furthermore, the Fund should be included in the existing control/audit procedures of the Intermediary. 4. The Focal point shall, in accordanc with article 6.2 of the rules and procedures, provide the Financial Mechanism Committee with summaries of all audit reports relevant to the Fund and/or its sub-projects. The Focal point shall upon request provide the Financial Mechanism Office, the Financial Mechanism Committee, or the Board of Auditors with the EFTA any audit report relevant to the Fund and/or its sub-projects, including auditing reports from the Supreme Audit Institution. Article 2.5 immediate reporting on other relevant developments and irregularit 1. The Focal point shall ensur is efficient and prompt investigation of any suspected and actual cases of fraud and irregularity. The Focal point shall, in accordanc with the guidelines adopted by Irregularit to the Financial Mechanism Committee, immediately report it to the Financial Mechanism Committee all suspected and actual cases of fraud and irregularity as well as all the related measure taken by the competent theret, national authorities. 2. The Parties shall immediately inform each other if they become aware of any legal actions initiated or continued against the Fund and/or its sub-projects, including actions or decision taken by the European Community institutions. Article 2.6 Implementation of the contract with the Intermediary 1. The Focal point shall ensur the sig ning of a contract with the Intermediary on the implementation of the Fund. Such implementation contract shall ensur that the obligation was undertaken by the Focal point in this agreement are properly delegated to the Intermediary in a manner which ensur enforceability of these of the obligation. In cases where the grant, due to a provision in the national legislation, cannot be disbursed to the Intermediary on the basis of an implementation contract, the Beneficiary State may instead issue a legislative or administrative act of similar effect. 2. the obligation referred to in the Delegation of paragraph 1 of this article does not in any way be affec the obligation and responsibilities of the Focal point under this grant agreement. 3. Prior to the first disbursemen, the Focal point shall have submitted to the Financial Mechanism Committee a standard version of such an implementation contract or implementation Act. 4. Prior to the first disbursemen, the Focal point shall provide the Financial Mechanism Committee with the following information on the contract or act relevant to the Fund: (a) the full legal name of the Intermediary; (b) the number of applications (FMO number) and the name of the Fund; (c) the date of entry into force of the contract or the date of issuance of the Act, and (d) information as to which standard version of the contract or act is used for the Fund. 5. If the standard version of the contract or the Act has already been sent to the Financial Mechanism Committee, the reference in paragraph 4 (d) of this article is to be considered a fulfilmen of paragraph 3.6. Upon request, the Focal point shall provide the Financial Mechanism Committee with a copy of the implementation agreement or accompanied by a translation, into English. Article 2.7 Representation and Equity to the Focal point and represent, warrants that the information provided by, through, or on behalf of the Focal point in connection with the application for fun ding, and the conclusion and implementation of the grant agreement by the authentic, accurate and complete. Chapter 3 disbursemen And Eligibility article 3.1 eligible Expenditure 1. Only the expense are eligible according to article 3.1 of the rules and procedures and the Provision of Detailed Expenditure Eligibility-can form the basis for the financing from the EEA Financial Mechanisms 2004-2009 2. Final payment claims is acceptabl must be received within six months of the last date for eligible expenditure referred to in article 4 of the of the grant agreement. Pay the claims received at Maine a later date or not deemed by the Financial Mechanism acceptabl Committee will not constitut a basis for disbursemen. 3. The Financial Mechanism Committee can, in accordanc with article 3.1 of the rules and procedures to extend the period of eligibility. Article 3.2 of the Disbursemen grant 1. Disbursement by made in accordanc with the approved project Implementation Plan based on requests for disbursement is submitted by the Paying Authority. 2. Before a disbursemen can be made, the Financial Mechanism Committee shall be provided with a project report in the interim both electronic and hard copy, certified by the Focal point and the Paying Authority in accordanc with the Disbursemen guidelines and the Beneficiary State Reporting and Monitoring guidelines. The project report shall cover a interim period of at least 3 calendar months and be related to expenditure from that of the period. 3. When the required documents have been provided to the Financial Mechanism Committee shall verify that they are in the correct form and that the condition for the disbursemen have been met. Unless the Financial Mechanism Committee decide to make use of remedies provided in Chapter 6, the Financial Mechanism Committee as soon as possible and shall within two months from the receipt of the request, the order to disbursemen its Disbursemen agent to execute the disbursemen in question to the Paying Authority. The Financial Mechanism Committee shall notify the Paying Authority when such disbursemen the order has been submitted. 4. In case of an error made in relations to a disbursemen the resulting in a higher amount paid than required under the grant agreement, the Focal point shall, upon request from the Financial Mechanism Committee, without delay of any reimburs amount disbursed unduly. Similarly, if an error results in a lower amount paid than required, the Financial Mechanism Committee shall, as soon as possible after being made aware of an error, such disburs the missing amount. 5. The principles of financing of pro rata costs incurred shall apply, meaning that the grant rate referred to in article 2 of the grant agreement shall not be exceeded at any time during the implementation of the project. This is without prejudice to article 3.4.6. When the disbursemen has been made, and received by the Paying Authority in full, the Financial Mechanism Committee has fulfilled its obligations relating to the disbursemen of you. 7. If any of the conditions justifying suspension of disbursement of funds or reimbursemen under articles 6.1.1 or apply, the Financial Mechanism 6.2.1 Committee may instruct the Focal point, that disbursed funds may not be used for any or all of the subproject to which such conditions apply, and/or for management cost if the conditions relate to the role of the Intermediary. The Focal point shall ensur that the Intermediary will act in compliance with such an instruction. Article 3.3 Transfer and use of the grant 1. The Focal point shall ensur that the Paying Authority, within fifteen working days of receipt of the disbursemen, the transfer of the disbursemen to the Intermediary. The Financial Mechanism Committee shall be notified by e-mail before the 15th of each month of the transfer made in the previous month. Such notification shall contain the amount transferred, the name of the recipient, the FMO project number, and the date of the transfer. 2. The Focal point shall ensur that the Intermediary will establish two accounts, one for management and one for Costa, re-granting. Article 3.4 Increased cost If the cost of the management of the Fund should 12 the management cost stipulated in the article 2 paragraph 5 of the grant agreement, the Focal point shall ensur that the Intermediary or obtain any such additional funds provides so as to ensur the full implementation of the fund. Chapter 4 Obligation related to the Implementation of the FUND article 4.1 Modification of the Fund 1. The following modification of the Fund is subject to the Financial Mechanism Committee's prior written approval: (a) modification of the scope, objective, purpose, or the results of the Fund, (b) modification of the conditions for the grant of the end-recipient, (c) transfer between activities beyond the 15% of the total amount of the Fund, (d) the modification of any of the items described in Annex III to the grant agreement. 2. Before submitting the proposed modification, the Focal point shall approve them and confirm that they are the cessary and/or not suitabl for the effectiveness of the Fund. 3. If there is a doubt as to the proposed modifications whethers require approval by the Financial Mechanism Committee, in particular when the modifications relate to issues described in Annex III to the grant agreement, the Focal point shall consult the Financial Mechanism Office before such modification takes effect. 4. Modifications under paragraph 1 may require a new appraisal prior to being accepted or rejected for an. Article 4.2 Revision of the Project Implementation Plan the Focal point a must submit a revised project Implementation Plan to the Financial Mechanism Committee when: (a) proposing modification which requires an approval by the Financial Me chanism Committee according to article 4.1, provided that such modification Lady the Project Implementation Plan, (b) any of the reporting period for the project interim reports scheduled in the Project Implementation Plan with changed; a revised Implementation Plan shall be submitted to project from later than 60 days before the end of the first reporting period, or affected, (c) the Financial Mechanism Committee requests an updated project Implementation Plan; a revised Implementation Plan shall be submitted to project from later than 30 days after such request is sent. Article 4.3 Special provision on procurement and awarding of contracts 1. The Focal point shall ensur that public procurement principles and procedures from national and Community legislation with the following applied at any level in the implementation of the grant agreement. 2. In cases where contracts concluded as part of the implementation of the Funds fall below the national or Community thresholds set for public procurement or outside the scope of the applicable public procurement law, the Focal point shall ensur that the awarding of such contracts (including the procedure prior to the awarding of) and the terms and conditions of such contracts comply with best economic practices , including accountability, allow a full and fair competition between potential providers, and ensur the optimal use of resources from the EEA Financial Mechanisms 2004-2009.3. The Focal point shall ensur that the highest ethics standards are observed during the procurement and execution of contracts, and shall ensur the applications of adequat and effective means to prevent illegal or corrupt practices. From the offers, gifts, payments or benefit of any kind, which would either directly or indirectly, or could, be construed as an illegal or corrupt practice, e.g. as an inducemen or reward for the award or execution of procurement contracts, shall be accepted. 4. The Focal point shall ensur that records of the awarding and execution of contracts with the CEAs and provided upon request to the Financial Mechanism Committee. Article 4.4 Reporting the Focal point shall provide project interim reports, Annual project progress reports and the Project Completion report in accordanc with the Beneficiary State Monitoring and Reporting guidelines. Chapter 5 External Monitoring and audit Article 5.1 Monitoring by the Financial Mechanism Committee the Financial Mechanism Committee may monitor the implementation and the progress of the Fund and/or its sub-projects in order to ensur that it is in compliance with the grant agreement. Article 5.2 audit by the Financial Mechanism Committee In accordanc with article 6.4 of the rules and procedures, the Financial Mechanism Committee may at any time it will own arrang audit and inspection of the Fund and/or its sub-project at all relevant locations. Article 5.3 audit by the EFTA Board of Auditors In accordanc with article 6.3 of the rules and Procedure, the EFTA Board of Auditors may at any time conduct audit of the Fund and/or its sub-projects at all relevant locations. Article 5.4 Access 1. The Focal point shall ensur that the Financial Mechanism Committee and the Financial Mechanism Office mandated to perform task or anyone on their behalf, and the EFTA Board of Auditors, have upon request, prompt, full, and unimpeded access to all information, documents, people, locations and facilities, public or private, relevant to the implementation of the grant agreement. Such access is subject to the applicable limitations under the national legislation of the Beneficiary State. 2. The Focal point shall, upon request, ensur that the above mentioned representatives of the rised-auth with accompanied by relevant personnel and provide them with the cessary assistance. Request under this paragraph shall be sent at least two weeks before the planned visit. Article 5.5 Responsibility the external monitoring and audit referred to in this chapter shall not in any way relieve the Focal point of its obligations under the grant agreement regarding the monitoring of the Fund and/or its sub-project, financial control and audit. Chapter 6 Suspension and reimbursement of article 6.1 Suspension of Disbursement 1. The Financial Mechanism Committee may decide to suspend disbursement of the grant if: (a) the conditions for disbursemen in accordanc with article 3.2 have not been met, (b) credibl information indicates that of the implementation or the progress of the project does not correspond to the Project Implementation Plan or is not in compliance with the grant agreement, (c) the reports referred to in article 4.4 or any other information requested has not been provided or include incomplete information (d) access required under Chapter 5 is restricted, (e) the financial management of the Fund has not been in accordanc with internationally recognised accounting principles, (f) it become aware of the suspected or actual cases of fraud, or if a irregularit or such cases have not been investigated or remedied adequately reported, (g) the implementation of the Fund is deemed to be in violation of Community law (h) a change, Fundamentals of circumstanc occure and said of the constitut an circumstanc essential basis for the grant agreement or the contributions from the EEA Financial Mechanisms 2004-2009 to the project, (i) it become aware of any of the misrepresentation of facts in any information given by or on behalf of the Focal point, directly or indirectly regimes by the implementation of the grant agreement (j) interests generated on the designated bank account of the Paying Authority have not been accounted for according to article 3.2 of the guidelines, Disbursemen (k) an adjustment of the grant is required in order to comply with the grant rate referred to in the grant agreement or the requirements referred to in article 3.2 of the rules and procedures, or (l) any other obligations stipulated in the grant agreement is not complied with by the Focal point. 2. The Financial Mechanism Committee may suspend payments if any of the conditions in a litter (b), (e), or (g) applies to any of the sub-projects and the Intermediary has not complied with requests from the Focal point and/or the Financial Mechanism Committee to take the appropriate and not to remedy such "deficienc cessary and prevent further loss of funds. Suspension due to deficienc in sub-projects shall be proportionat to the scope of the breach and exten. 3. If possible, the Focal point shall be given an opportunity to provide its views before the Financial Mechanism Committee take a decision to suspend disbursement. The decision to suspend shall be reasoned and disbursement of immediately effective. The Focal point shall be notified as soon as possible but from later than 7 working days from the date of the decision. 4. The Focal point can at any time the present documents or other evidence showing that the conditions in paragraph 1 (a) to (l) no longer apply or do not justify suspension of disbursement, and request that the Financial Mechanism Committee reviews its decision to suspend payments. 5. When the Financial Mechanism Committee finds that the conditions described in paragraph 1 (a) to (l) above no longer apply or justify suspension of disbursement, it shall take a decision to continue disbursement. Article 6.2 Reimbursemen 1. In case of serious non-compliance with the grant agreement, or if suspension of payments is not likely to be sufficient or feasibl, the Financial Mechanism Committee may, after having consulted the Focal point with a view to reaching a solution, you decide to demand if any of the reimbursemen conditions referred to in (b) of the litter (l) of article 6.1.1, apply; or if the article 6.1.2 of the Apple, the demand of funds intended reimbursemen or paid to end-recipient, subject to paragraph 2 of this article. 2. The Financial Committee shall not demand reimbursemen Mechanism of funds that were lost due to the misus of irregularit or funds in a sub-project, if the Focal point show that such a loss or it is late detection is not due to a not gligen or non performance of it or the Intermediary's duties, and the Focal point and the Intermediary have taken all reasonable measure to recover such funds. 3. Prior to making a decision referred to in paragraph 1 of this article, the Financial Mechanism Committee shall notify the Focal point of its intention to demand reimbursemen. The notification shall outline the reason for the proposed measure. The Focal point can within 45 working days from the date of the notifications provide any documents relevant to the decision. 4. At any time prior to the decision to demand, the Focal Point reimbursemen and the Financial Mechanism Committee can enter into a dialogue with a view to ensur that the said decision is based on accurate and correct facts. 5. The Focal point shall be notified of a decision referred to in paragraph 1 of this article as soon as possible but from later than 7 working days from the date of the decision. The notification shall outline the reason for the decision. 6. Within three months from the decision of the Financial Mechanism referred to in paragraph 1 of the Committee of this article, the Focal point shall, with the exception stipulated in paragraph 8 of this article, the Financial Mechanism reimburs Committee the amount requested, subject to the specifications detailed in the decision. 7. the Focal Point Reimbursemen from it to the Financial Committee is not a Mechanism upon reimbursemen contingen from the Intermediary or the end-recipient. 8. If the Intermediary is a private entity and the Focal point of the show is that it has and is taking appropriate measure to recover the funds from the Intermediary, the Financial Mechanism Committee can decide to give the Focal point up to one year to the requested funds reimburs. In such a case, the Financial Mechanism Committee can also decide to contribute up to 50% of reasonable legal fees related to the recovery of the funds from the Intermediary. 9. If a demand for them the Financial Mechanism reimbursemen Committee is not complied with by the Focal point, or a dispute related to a demand for that of the «arise reimbursemen cannot be solved in accordanc with article 7.1, the parties may bring the dispute before the Oslo Tingret in accordanc with article 1.7 of the rules and procedures. Article 6.3 General suspension of disbursement 1. The Financial Mechanism Committee may, after having consulted the Focal point with a view to reaching a solution, suspend payments if: (a) information or documents obtained by or provided to the Financial Mechanism Committee indicates the presence of systemic or widespread shortcomings regarding the management of the financial contributions from the EEA Financial Mechanisms 2004-2009 in the Beneficiary State, or (b) a demand for related to any reimbursemen type of project assistance in the Beneficiary State financed by the EEA Financial Mechanisms 2004-2009 has not been complied with by the Focal point. 2. The procedures referred to in paragraphs 3 to 5 of article 6.2 shall apply mutatis mutandis to the suspension of disbursement under this article. 3. If the situation referred to in paragraph 1 (a) of this article relate directly to this Fund, the Financial Mechanism Committee can apply the procedure under article 6.1 of Chapter 7 Final provision Article 7.1 dispute settlement the parties of their rights to bring waiv any dispute related to the grant agreement before any national or international court, and agree to settle such a dispute in the UN-amicabl manner. This article shall be with out prejudice to paragraph 9 of article 6.2. Article 7.2 Waiver of Responsibility 1. Any appraisal of the Fund undertaken before or after its approval by the Financial Mechanism Committee, does not in any way diminish the responsibility of the Focal point to verify and confirm the correctnes of the documents and information forming the basis of the grant agreement. 2. Nothing led in the grant agreement shall be construed as imposing upon the Financial Mechanism Committee or the Financial Mechanism Office any responsibility of any kind for the supervision, execution, completion, or the operations of the Fund or its sub-projects. 3. The Financial Mechanism Committee does not assume any risk or responsibility whatsoever for any damage, injuries, or other possible adverse effects caused by the Fund or its sub-projects, including, but not limited to the inconsistenc in the planning of the Fund, its sub-projects, other project (s) that might be in the or that affec it might be, or public disconten the affec. It is the full and sole responsibility of the Focal point to satisfactorily address such issues. 4. the Focal point, ither nor the Intermediary, nor the end-recipient or any other party shall have recourses to the Financial Mechanism Committee for further financial support or assistance to the Fund in whatsoever form over and above what has been provided for in the grant agreement. 5. an ither the European Free Trade Association, its secretariat, including the Financial Mechanism Office, its officials or employees, nor the Financial Mechanism Committee, its members or alternate members, nor the EFTA States, can be held liabl for any damage or injuries of whatever nature sustained by the Focal point or the Beneficiary State, the Intermediary, the end-recipient or any other third party , in connection, be it direct or indirect, with the grant agreement. Article 7.3 language 1. All communications shall take place in the English language. 2. To the exten the original documents that are not available in the English language, the documents shall be accompanied by full and accurate translations into English. 3. The Focal point shall bear the responsibility for the accuracy of the translation and the possible consequences that might «arise from any inaccurat translations. Annex 2 Annex 3 EEA Financial Mechanism Norwegian Financial Mechanism 2004-2010 2004-2009 Fund set-up 1. Description of the sub-projects 1.1 eligible activities (sub-measure-if any): the Fund will support the preparation of individual projects in all priority areas and their respectiv» focus areas of the EEA and Norwegian Financial mechanisms (except for the Schengen priority area) in the Republic of Latvia. The Fund shall especially support; development of innovative ideas in the us of EEA and Norwegian Financial mechanisms; development of complex project themes and preparation of complex projects and establishment of new partnerships with intention to prepare project applications. 1.2 eligible applicants: eligible applicants with public administration or municipal bodies and affiliated institutions/agencies; educational institutions established by the State or a municipality; State scientific institutions; State agencies; societies; Foundation or enterprises that are established and registered as legal entities in the Republic of Latvia. 1.3 the minimum and maximum grant amount per sub project: minimum amount of grant is 5.000. Maximum amount of grant is 20.000.1.4 Duration of sub-projects: there are no restriction on the minimum duration of the sub-projects. The implementation of a project shall be sub-concluded from later than on the date of the closing of the second open call in Latvia. 1.5 the Co-financing: (A) grant from the Fund shall not exceeds 100 90 percent of total eligible costs of the sub-project. The remaining cost of the project shall be sub-provided or obtained by the end-recipient from other sources. 1.6 the Eligibility of costs, including in-kind: Costa with an eligible if they are justified, appropriate, and not cessary and related to the subprojec's long term effects and planned results. Further, eligible costs must be duly explained and in line with the Detailed Eligibility Provision-Adjustments. The main types of eligible costs, travel with salar & subsistenc, external expertise and administration costs. In-kind contributions that fall within article 2.2 of the Detailed Eligibility Provision-with an eligible Expenditure. In-kind contributions up to 5% can constitut of the total eligible cost of the sub-project. 2. Selection of sub projects 2.1 Institutional set-up: the SIF Council shall act as a Steering Committee for the operations and shall approve or rejec applications. The SIF Council is appointed and approved by the Cabinet of Minister and consist of representatives from line ministries, regional authorities and from the NGO community in Latvia. The Chairman of the Council is selected by its members. The Evaluation Committee, appointed by the Council, the SIF will carry out the quality assessment of applications for the grant. The Evaluation Committee will consist of members from the Intermediary and external experts. The application form and the standard grant contract annex shall be approved of by the with the Director of SIF. The Director of the SIF has the signatory powers of the Fund and functions as the executer of the State budget allocated for the Fund. The grant contract with the end-recipient shall be signed by the Director of SIF. 2.2 Selection process and procedures: the availability of grants from the Fund shall be announced in an open call. All applications shall be examined and evaluated by the Intermediary in accordanc with the administrative and eligibility criteria. The qualitativ and financial evaluation of the applications shall be carried out by the Evaluation Committee. The Evaluation Committee may involv-external experts in the evaluation of applications, ' quality and financial aspects. The Evaluation Committee shall provide a ranked list of projects for approval by the Council of the SIF. The Intermediary shall inform applicants whose applications are rejected for an about the reason for the rejection. Applicant whose application is rejected for an due to non-compliance with administrative or eligibility criteria can request the Intermediary to review its decision. The applicant shall submit such a request within 10 days from being notified about the rejection and shall provide reasons for why the decision should be overturned. 2.3 Selection criteria: Selection and evaluation criteria of eligibility, administrative, involv qualitativ and financial checklists where with each of the givens score criterion. The financial evaluation criteria qualitativ and focus on the applicants ' capacity to implementations that the project, the level of complexity/innovativenes, the relevance and the economic feasibility of the project. During the review of the administrative and eligibility criteria, the Intermediary may ask the applicant to provide additional information or clarification. The evaluation of the quality of applications, including the proposed budget, shall be carried out in accordanc with the evaluation criteria set out in the evaluation grid. The Evaluation Committee evaluate the projects grouping them to two month period according to the time of submission. 2.4 Open call and availability of funds (including number of calls, duration of calls, and estimated size): grants from the Fund shall be made available for the preparation of the individual projects to be submitted during the second open call in Latvia. The Intermediary shall organise one call for applications for the sub-projects. The duration of the call shall not be less than two months. 3. Through the Intermediary for BYU and receiving monitoring reports from the endrecipient the monitoring unit of the Intermediary shall be responsible for monitoring and controlling the implementation of the sub-supported projects (regular communications with the end-recipient on relevant issues and monitoring the visits, checking payment requests, progress, technical and financial reports). The financial control unit of the Intermediary shall be responsible for providing consultation on financial and accounting issues to the program unit, which is the Secretariat to the Council of the SIF. The financial control unit will throughout the life-cycle of sub-projects conduct relevant double check (grant contracts, financial reports, and payment requests) the internal audit unit of the Intermediary shall perform audits to a number of selected end-recipient during or after implementation of the sub-projects. Reports from the end-recipient shall be prepared according to the format provided in the contract. The end-recipient shall submit quarterly progress reports and a final report. The quarterly report shall include information on the progress and payments made. The final report shall include documentation of activities and payments. 4. Reporting from the Focal Point to the Intermediary the Intermediary will submit quarterly project interim reports to the Focal point. The accounting unit of the Intermediary shall be responsible for preparing the part of the Interim Report to the relevant project to the payment claim on the basis of the signed contracts or approved reports and submitting them to the Paying Authority. 5. the Disbursement of their Intermediary (management Costa) 5.1 advance payment scheme: 10% of the management costs will be paid as an advance payment, to be set off when 80% of the amount for management cost has been disbursed. 5.2 subsequent disbursement: Disbursemen of incurred costs will be made following acceptance of the interim project reports. Final disbursemen of the balance of the incurred management costs will be made following acceptance of the Project Completion report. 6. Disbursemen their Intermediary (funds for re-granting) 6.1 advance payment scheme: 80% of the funds for re-granting announced in the open call shall be disbursed to the Intermediary 10 working days after the closing of the call. Disbursement of funds for subsequent re-granting shall be made as advance payment in a manner to be set out in the Project Implementation Plan and requested through the project interim reports. The payment scheme shall ensur that sufficient funds will be available for (a) the timely transfer of funds to the end-recipient, whethers advance payments, subsequent instalment, or final payments. 6.2 subsequent disbursement: N/A Disbursement to end 7-7.1 the recipient first data of eligibility: Costa in sub-projects become eligible at the date of the grant decision by the Intermediary. 7.2 the advance payments and disbursement: the End-recipient shall receive the first advance payment (25% of the grant) after the signature of the contract. An additional 55 percent of the grant may be paid as advance instalment, in equal shares for each quarter of the scheduled implementation, after submission of a quarterly interim report. The balance payment (20% of the grant) shall be paid after approval by the Intermediary of the final report. If the sub-project lasts three months or less, from the interim report is not cessary, initial advance payment may be up to 80% and the remaining amount of the grant will be paid after the approval of the final report. 8. Publicity 8.1 the Intermediary level: the publicity measure shall be in accordanc with of the Publicity guidelines and the publicity plan submitted. They shall ensur a transparency by providing possible applicants with adequat and high quality information about the EEA grants in general, as well as be designed to raise public awareness and disseminat information about the Fund. The focus of the publicity measure shall be one of informing the broader public about opportunities provided under the Financial mechanisms and encourag development of project ideas. Activities in this period include: advertisements, electronic leaflet, booklet, website and seminars. Information and publicity activities shall continue throughout the operations in order to raise awareness of the available funds. Before and during the call launch, advertisements shall be made in national news papers of the Republic of Latvia (in Latvian and Russian). The call shall take into account the principles of the Open Call Guide. An electronic leaflet informing about the launch of the Fund and shall be informing about seminars developed. The Intermediary shall organise one to three information seminar in Riga, depending on the number of participants, and at least one seminar in each of the eras. A list of approved grant applications shall be published and regularly updated on the websites of the Intermediary and the Focal point. 8.2 Sub project level: the end-recipient must ensur that appropriate visibility and credit is given to the EEA Financial Mechanism and the Norwegian Financial Mechanism. Such measure of publicity should be included in the reports and publications stemming from the sub-projects and in public events associated with the sub-projects.