Article 5: Payment arrangements

5.1 In accordance with Article 18(2) of the General Conditions, the Commission shall make a pre-financing payment equivalent to […%]of the amount specified in Article 3(2) herein.

The pre-financing is up to the 80% of the total amount of EU financing.

The level of pre-financing shall be established taking into account

  • the duration of the action;
  • the difficult operating contexts, where there is a risk that the Action can be suspended or terminated (in order to allow the re-allocation of the un-spent amounts);
  • the past performance of the partner in similar contexts;
  • in case of partners with a financial threshold to limit the risks incurred by ECHO.

In these cases, ECHO may provide 50% (followed by a second pre-financing payment amounting to 30%) or a different configuration,

In general, the partner is informed of the level of pre-financing directly with the SGA.

The process for the initial pre-financing payment will be launched automatically by the Commission upon receipt of the signed Specific Grant Agreement without the Partner need to submit any request for this pre-financing payment. The Commission shall make the pre-financing payment to the Partner within 30 calendar days following receipt of the signed Agreement. In case of delay, the rule concerning the late payment interest will apply.

5.2 Either [“In accordance with Article 18(3) of the General Conditions, a further pre-financing instalment, equivalent to […%] of the amount specified in Article 3(2) herein shall be made by the Commission, subject to the Humanitarian Organisation’s declaration that at least 70% of the first pre-financing instalment paid has been consumed.”] or [“Not applicable.”].

Where the Agreement provides for the payment of pre-financing in more than one instalment, and unless that Article provides for other arrangements, the Partner shall submit a request for any further pre-financing instalment stating that at least 70% of the first pre-financing instalment has been consumed namely, the partner has legal commitments amounting to 70% of the first instalment.

To this end, the partner does not have to submit an interim report nor a financial report but it can ask for a second-prefinanicing at any time using the dedicated form in APPEL and sign the declaration to be attached as an annex in APPEL (no additional information needed).

The Commission shall execute the new pre-financing instalment within 30 calendar days from the date of receipt of the request for further pre-financing instalment.

If there is a single pre-financing, Article 5(2) shall indicate ‘Not applicable.’