NGO FPA

Termination of the Specific Grant Agreement

The Termination of the Agreement can be done by:

the Humanitarian Organisation

The partner may terminate the Specific Grant Agreement in duly justified cases, for example if changes in circumstances in the field are likely to make it impossible or excessively difficult to continue the implementation of the Action, such as in cases of force majeure, serious threat to the safety or security of humanitarian workers or beneficiaries, or the inability to ensure compliance with the humanitarian principles. In any case, the decision to terminate the Specific Grant Agreement must be duly justified.

Procedure for termination

In case the Partner wants to terminate the Agreement, it shall do so by formally notifying the Commission:

  • the reasons;
  • the date on which the termination shall take effect.

The Specific Grant Agreement cannot be terminated before the notification is sent to ECHO, and if the partner does not provide any reasons for the termination, or if the given reasons cannot justify the termination, ECHO formally informs the partner that the Specific Grant Agreement was terminated improperly.

the Commission

The Commission may decide to terminate the Specific Grant Agreement in the following circumstances:

  • if a change to the Partner's legal, financial, technical, organisational or ownership situation is likely to substantially adversely affect the implementation of the Specific Grant Agreement, or if it calls into question the decision to award the grant;
  • if the Partner does not implement the Action as specified in the Single Form or if it fails to comply with another substantial obligation incumbent on it under the terms of the Agreement;
  • in the event of force majeure, or in the event of a suspension of the implementation of the Action, where the suspension lasts longer than one third of the implementation period of the Action or where the necessary modifications to the Specific Grant Agreement would call into question the decision awarding the grant;
  • if the Partner is declared bankrupt, is being wound up, is having its affairs administered by the courts, has entered into an arrangement with creditors, has suspended business activities, is the subject of any other similar proceedings concerning those matters, or is in an analogous situation arising from a similar procedure provided for in national legislation or regulations;
  • if a Partner or any related person (i.e. any natural person which has the power to represent the Partner or to take decisions on its behalf), have been found guilty of grave professional misconduct proven by any justified means;
  • if a Partner is not in compliance with its obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which it is established or in which the Action is implemented;

  • if the Commission has evidence that a Partner, have committed fraud, corruption, or are involved in a criminal organisation, money laundering or any other illegal activity detrimental to the Union's financial interests;
  • if the Commission has evidence that a Partner or any related person have committed substantial errors, irregularities or fraud in the implementation of the Agreement, including in the event of submission of false information or failure to submit required information in order to obtain a specific grant;
  • if the Commission has evidence that a Partner has committed systemic or recurrent errors, irregularities, fraud or breach of obligations under other grants funded by the Union, which were awarded to that Partner under similar conditions, provided that those errors, irregularities, fraud or breach of obligations have a material impact on this Specific Grant Agreement; or
  • where the Commission, in spite of two suspensions of the time-limit for payment within the payment deadline, is still not in the position to approve the Final Report presented by the Partner.

Procedure for termination

The Commission shall notify the Partner of its intention to terminate the Agreement, specifying the reasons thereof, and inviting the Partner to submit observations within 15 calendar days from the receipt of the notification.

  • If the Partner submits observations, the Commission shall notify of its decision on the termination.
  • If the Commission decides to terminate the Agreement despite the observations submitted by the Partner, the termination shall take effect on the date of receipt of the termination decision’s notification.
  • If no observations have been submitted, the termination shall take effect 15 calendar days following the notification by the Commission of the intention to terminate.

Effects of termination

Effects of termination of the SGA are the same regardless whether it is ECHO or the partner who terminates the SGA. Payment by the Commission shall be limited to the amount determined on the basis of:

  • the eligible costs incurred by the Partner;
  • the actual level of implementation of the Action on the date of termination.

The Specific Grant Agreement shall continue to apply even after the termination, to the extent necessary to allow for the payment of the balance. Costs relating to current commitments, which are not due for execution until after the termination, shall not be taken into account.

The partner has to send its request for payment within 60 calendar days after the termination. If this is not done, ECHO may recover what was already paid to the partner. The possibility of 60 calendar days to send the request for payment will not be given to such a partner that has the SGA terminated due to not producing final payment request within the deadline required, after being already reminded by ECHO.

In those cases where the SGA is terminated improperly by the partner or the SGA is terminated because the partner did not implement the Action properly, or if the partner committed grave professional misconduct, corruption, fraud, or any illegal activity, ECHO may also apply financial penalties proportionate to the gravity of the situation.

References & useful links