Consultation on the Regulation on the implementation of the EEA Financial Mechanism 2021-2028

EEA Financial Mechanism 2021-2028 Regulation for Beneficiary State Consultation – All chapters and annexes

Chapter 1 General provisions .................................................................................................................................................................................................................................... 2

Chapter 2 Strategic approach ................................................................................................................................................................................................................................. 13

Chapter 3 Information and Communication ............................................................................................................................................................................................................ 19

Chapter 4 Bilateral relations ................................................................................................................................................................................................................................... 30

Chapter 5 Management and control systems ......................................................................................................................................................................................................... 44

Chapter 6 Programmes ........................................................................................................................................................................................................................................... 65

Chapter 7 Selection of projects ............................................................................................................................................................................................................................... 83

Chapter 8 Eligibility of expenditures ....................................................................................................................................................................................................................... 99

Chapter 9 Financial management ......................................................................................................................................................................................................................... 134

Chapter 10 Evaluations and monitoring ............................................................................................................................................................................................................... 143

Chapter 11 Audits.................................................................................................................................................................................................................................................. 145

Chapter 12 Irregularities ........................................................................................................................................................................................................................................ 148

Chapter 13 Suspension of payments, financial corrections and reimbursement ................................................................................................................................................. 154

Chapter 14 Final provisions ................................................................................................................................................................................................................................... 164

Annex 1: Eligible Thematic Priorities and Programme Areas ................................................................................................................................................................................ 167

Annex 2: Template for MoU .................................................................................................................................................................................................................................. 168

Annex 3: Bilateral Fund Agreement template ....................................................................................................................................................................................................... 190

Annex 4: Programme agreement template ........................................................................................................................................................................................................... 209

Annex 5: Technical assistance agreement template ............................................................................................................................................................................................. 229

Concept Note template.......................................................................................................................................................................................................................................... 240

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 2

Current text New text (with track changes) Comments

Chapter 1

General provisions

Chapter 1

General provisions

Article 1.1

Subject matter

Article 1.1

Subject matter

1. This Regulation applies to the implementation of the

EEA Financial Mechanism 2014-2021 and was

adopted in accordance with Article 10 of Protocol 38c

to the EEA Agreement.

1. This Regulation applies to the implementation of the

EEA Financial Mechanism 2014-20212021-2028 and

was adopted in accordance with Article 10 9 of

Protocol 38c38d to the EEA Agreement.

2. This Regulation lays down the general rules

governing the EEA Financial Mechanism 2014-2021

without prejudice to the provisions laid down in

Protocol 38c to the EEA Agreement.

2. This Regulation lays down the general

rulesprovisions for implementation of the EEA

Financial Mechanism 2014-20212021-2028 without

prejudice to the provisions laid down in Protocol

38c38d to the EEA Agreement.

Language clarification

Article 1.2

Objectives

Article 1.2

Objectives

The overall objectives of the EEA Financial

Mechanism 2014-2021 are to contribute to the

reduction of economic and social disparities in the

European Economic Area and to strengthen bilateral

relations between the Donor States and the Beneficiary

States through financial contributions in the priority

sectors listed in paragraph 1 of Article 2.1.

The overall objectives of the EEA Financial

Mechanism 2014-20212021-2028 are to contribute to

the reduction of economic and social disparities in the

European Economic Area and to strengthen bilateral

relations between the Donor States and the Beneficiary

States through financial contributions in the priority

sectorsthematic priorities listed in paragraph 1 of

Article 2.1.

Text aligned with the Protocol

Article 1.3

Principles of implementation

Article 1.3

Principles of implementation

1. All programmes and activities funded by the EEA

Financial Mechanism 2014-2021 shall be based on the

common values of respect for human dignity, freedom,

democracy, equality, the rule of law and the respect for

human rights, including the rights of persons

belonging to minorities.

1. All programmes and activities funded by Tthe EEA

Financial Mechanism 2014-20212021-2028 is shall be

based on the common values and principles of respect

for human dignity, freedom, democracy, equality, the

rule of law and the respect for human rights, including

the rights of persons belonging to minorities. All

programmes and activities funded by the EEA

Text aligned with the Protocol

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 3

Current text New text (with track changes) Comments

Financial Mechanism 2021-2028 shall be consistent

with respect for these values and principles and abstain

from supporting operations that may fail to do so.

Their implementation shall comply with the

fundamental rights and obligations enshrined in

relevant instruments and standards.

2. All programmes and activities funded by the EEA

Financial Mechanism 2014-2021 shall follow the

principles of good governance; they shall be

participatory and inclusive, accountable, transparent,

responsive, effective and efficient. There shall be zero-

tolerance towards corruption.

2. All programmes and activities funded byThe

implementation of the EEA Financial Mechanism

2014-20212021-2028 shall follow the principles of

good governance; , they shall be participatory and

inclusive, accountable, transparent, responsive,

effective and efficient. There shall be zero-tolerance

towards corruption.

Text aligned with the Protocol

3. All programmes and activities funded by the EEA

Financial Mechanism 2014-2021 shall be consistent

with sustainable development, long-term economic

growth, social cohesion and environmental protection.

3. All programmes and activities funded byThe

implementation of the EEA Financial Mechanism

2014-20212021-2028 shall be consistent with

sustainable development, long-term economic growth,

social cohesion and environmental protection.

Text aligned with the Protocol

4. All programmes and activities funded by the EEA

Financial Mechanism 2014-2021 shall follow a results

and risk management approach.

4. All programmes and activities funded byThe

implementation of the EEA Financial Mechanism

2014-20212021-2028 shall follow a results and risk

management approach.

Text aligned with the Protocol

Article 1.4

Principle of co-operation

Article 1.4

Principle of co-operation

The objectives of the EEA Financial Mechanism

2014-2021 shall be pursued in the framework of close

co-operation between the Donor States and the

Beneficiary States.

The objectives of the EEA Financial Mechanism

2014-20212021-2028 shall be pursued in the a

framework of close co-operation between the Donor

States and the Beneficiary States, respecting the values

and principles and complying with the rights and

obligations referred to in Article 1.3.

Text aligned with the Protocol

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 4

Current text New text (with track changes) Comments

Article 1.5

The legal framework

Article 1.5

The legal framework

1. This Regulation shall be read in conjunction with

the following documents which, together with the

Regulation and its annexes, constitute the legal

framework of the EEA Financial Mechanism 2014-

2021:

(a) Protocol 38c to the EEA Agreement on the EEA

Financial Mechanism 2014-2021;

(b) the Memorandum of Understanding on the

Implementation of the EEA Financial Mechanism

2014-2021 (hereinafter referred to as the MoU),

entered into between the Donor States and the

Beneficiary State;

(c) the programme agreements; and

(d) any guidelines adopted by the FMC after

consultation with the Beneficiary States.

1. This Regulation shall be read in conjunction with

the following documents which, together with the

Regulation and its annexes, constitute the legal

framework of the EEA Financial Mechanism 2014-

20212021-2028:

(a) Protocol 38c38d to the EEA Agreement on the

EEA Financial Mechanism 2014-20212021-

2028;

(b) the Memorandum of Understanding on the

Implementation of the EEA Financial Mechanism

2014-20212021-2028 (hereinafter referred to as

the MoU), entered into between the Donor States

and the Beneficiary State;

(c) the programme agreements; and

(d) any guidelines adopted by the FMC after

consultation with the Beneficiary States.

2. The Beneficiary State shall ensure that any

additional provisions applicable to the implementation

of the EEA Financial Mechanism 2014-2021 are kept

to a minimum. The legal framework mentioned in

paragraph 1 takes precedence over any such

provisions.

2. The Beneficiary State shall ensure that any

additional provisions applicable to the implementation

of the EEA Financial Mechanism 2014-20212021-

2028 are kept to a minimum. The legal framework

mentioned in paragraph 1 takes precedence over any

such provisions.

Article 1.6

Definitions

Article 1.6 Definitions

For the purposes of this Regulation, the following

terms shall have the meanings assigned to them here:

(a) “Audit Authority”: a national public entity,

functionally independent of the National Focal

Point, the Certifying Authority and the

For the purposes of this Regulation, the following

terms shall have the meanings assigned to them here:

(a) “Audit Authority”: a national public entity,

functionally independent of the National Focal

Point, the Certifying Authority, and the

Added definitions on:

Beneficiary State

Conflict of Interest

International Organisation

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 5

Current text New text (with track changes) Comments

Programme Operator, designated by the

Beneficiary State and responsible for verifying the

effective functioning of the management and

control system.

(b) “Certifying Authority”: a national public entity,

functionally independent of the Audit Authority

and the Programme Operator, designated by the

Beneficiary State to certify financial information.

(c) “Donor partnership project”: a project

implemented in close cooperation with a project

partner whose primary location is in one of the

Donor States.

(d) “Donor Programme Partner”: a public entity in a

Donor State designated by the FMC advising on

the preparation and/or implementation of a

programme, and/or participating in the

implementation of a programme.

(e) ”Donor States”: Iceland, Liechtenstein and

Norway.

(f) “EEA Financial Mechanism Committee”

(hereinafter referred to as the FMC): The

committee established by the Standing Committee

of the EFTA States to manage the EEA Financial

Mechanism 2014-2021.

(g) “Evaluation”: a systematic, objective and

independent assessment of the design,

implementation and/or results achieved in

programmes and projects with the aim of

determining the relevance, coherence and

consistency effectiveness, efficiency, impacts and

sustainability of the financial contribution.

Programme Operator and the auditees, designated

identified in the MoUby the Beneficiary State and

responsible for verifying the effective functioning

of the management and control system.

(b) “Beneficiary State”: An EU Member State to

which an allocation has been made in Article 6 of

Protocol 38D to the EEA Agreement.

(c) “Certifying Authority”: a national public entity,

functionally independent of the Audit Authority

and the Programme Operator, designated by the

Beneficiary Stateidentified in the MoU and

responsible for certifying to certify financial

information.

(b)(d) “Conflict of Interest”: a situation where a

person or entity involved in the implementation of

the EEA Financial Mechanism has direct or

indirect interests that are or appear to be

incompatible with the impartial and/or objective

exercise of their function(s). Such interests may be

related to economic interests, political or national

affinities, family or emotional ties, or any other

shared interests.

(c)(e) “Donor partnership project”: a project

implemented in close cooperation with a project

partner whose primary location is in one of the

Donor States.

(d)(f) “Donor Programme Partner”: a public entity

in a Donor State designated by the FMC advising

on the preparation and/or implementation of a

programme, and/or participating in the

implementation of a programme.

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 6

Current text New text (with track changes) Comments

(h) “Financial Mechanism Office” (hereinafter

referred to as the FMO): the office assisting the

FMC in managing the EEA Financial Mechanism

2014-2021. The FMO, which is administratively a

part of the European Free Trade Association, is

responsible for the day-to-day implementation of

the EEA Financial Mechanism 2014-2021 on

behalf of the FMC and serves as a contact point.

(i) “International Partner Organisation” (hereinafter

referred to as IPO): international organisation or

body or an agency thereof, involved in the

implementation of the EEA Financial Mechanism

2014-2021, designated by the FMC.

(j) “Irregularities Authority”: a national public entity

designated by the Beneficiary State to be

responsible for the preparation and submission of

irregularities reports on behalf of the Beneficiary

State.

(k) “Joint Committee for Bilateral Funds”: a

committee established by the Beneficiary State to

discuss matters of bilateral interest, decide on the

use of the fund for bilateral relations and review

progress in the implementation of the EEA

Financial Mechanism 2014-2021 towards

reaching the objective of strengthened bilateral

relations.

(l) “Monitoring”: the observation of programme and

project implementation in order to ensure that

agreed procedures are followed, to verify progress

towards agreed outcomes and outputs and to

identify potential problems in a timely manner so

as to allow for corrective action.

(e)(g) ”Donor States”: Iceland, Liechtenstein and

Norway.

(f)(h) “EEA Financial Mechanism Committee”

(hereinafter referred to as the FMC): The

committee established by the Standing Committee

of the EFTA States to manage the EEA Financial

Mechanism 2014-20212021-2028.

(g)(i) “Evaluation”: a systematic, objective and

independent assessment of the design,

implementation and/or results achieved in

programmes and projects with the aim of

determining the relevance, coherence, and

consistency effectiveness, efficiency, impacts

and/or sustainability of the financial contribution.

(j) “Financial Mechanism Office” (hereinafter

referred to as the FMO): the office assisting the

FMC in managing the EEA Financial Mechanism

2014-20212021-2028. The FMO, which is

administratively a part of the European Free Trade

Association, is responsible for the day-to-day

implementation of the EEA Financial Mechanism

2014-20212021-2028 on behalf of the FMC and

serves as a contact point.

(h)(k) “International Organisation": an international

intergovernmental organisation.

(i)(l) “International Partner Organisation”

(hereinafter referred to as IPO): international

organisation or body or an agency thereof,

involved in the implementation of the EEA

Financial Mechanism 2014-20212021-2028,

designated by the FMC.

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 7

Current text New text (with track changes) Comments

(m) “National Focal Point”: a national public entity

designated by the Beneficiary State to have the

overall responsibility for reaching the objectives

of the EEA Financial Mechanism 2014-2021 and

implementing the MoU.

(n) “Non-governmental organisation” (hereinafter

referred to as NGO): a non-profit voluntary

organisation established as a legal entity, having a

non-commercial purpose, independent of local,

regional and central government, public entities,

political parties and commercial organisations.

Religious institutions and political parties are not

considered NGOs.

(o) “Programme”: a structure setting out a

development strategy with a coherent set of

measures to be carried out through projects with

the support of the EEA Financial Mechanism

2014-2021 and aimed at achieving agreed

objectives and outcomes.

(p) “Programme agreement”: an agreement between

the FMC and the National Focal Point regulating

the implementation of a particular programme.

(q) “Programme grant”: the financial contribution

from the Donor States to a programme.

(r) “Programme Operator”: a public or private entity,

commercial or non-commercial, as well as non-

governmental organisations, having the

responsibility for preparing and implementing a

programme.

(s) “Programme partner”: a public or private entity,

commercial or non-commercial, as well as non-

governmental organisations, international

(j) “Irregularities Authority”: a national public entity

designated by the Beneficiary State to

beresponsible for the preparation and submission

of irregularities reports on behalf of the

Beneficiary State.

(k)(m) “Joint Committee for the Bilateral Funds”: a

committee established by the Beneficiary State to

discuss matters of bilateral interest beyond the

programmes, decide on the use of the funds for

bilateral relations at national level and review

progress in the implementation of the EEA

Financial Mechanism 2014-20212021-2028

towards reaching the objective of strengthened

bilateral relations.

(n) “Monitoring”: the observation of programme and

project implementation in order to ensure that

agreed procedures are followed, to verify progress

towards agreed outcomes and outputs and to

identify potential problems in a timely manner so

as to allow for corrective action.

(l)(o) “National Focal Point”: a national public

entity designated by the Beneficiary

Stateidentified in the MoU, to haveholding the

overall responsibility for reaching the objectives

of the EEA Financial Mechanism 2014-

20212021-2028 and implementing the MoU.

(m)(p) “Non-governmental organisation”

(hereinafter referred to as NGO): a non-profit

voluntary organisation established as a legal

entity, having a non-commercial purpose,

independent of local, regional and central

government, public entities, political parties and

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 8

Current text New text (with track changes) Comments

organisations or agencies or bodies thereof,

actively involved in, and effectively contributing

to, the implementation of a programme.

(t) “Project”: an economically indivisible series of

works fulfilling a precise technical function and

with clearly identifiable aims related to the

programme under which it falls. A project may

include one or more sub-projects. Without

prejudice to Article 6.5, projects are selected by

the Programme Operator.

(u) “Project contract”: an agreement between the

Programme Operator and the Project Promoter

regulating the implementation of a particular

project.

(v) “Project grant”: a grant awarded by a Programme

Operator to a Project Promoter to implement a

project.

(w) “Project partner”: a natural or legal person

actively involved in, and effectively contributing

to, the implementation of a project. It shares with

the Project Promoter a common economic or

social goal which is to be realised through the

implementation of that project.

(x) “Project Promoter”: a natural or legal person

having the responsibility for initiating, preparing

and implementing a project.

(y) “Social partners”: representatives of employers'

organisations and trade unions.

commercial organisations. Religious institutions

and political parties are not considered NGOs.

(n)(q) “Programme”: a structure setting out a

development strategy with a coherent set of

measures to be carried out through projects with

the support of the EEA Financial Mechanism

2014-20212021-2028 and aimed at achieving

agreed objectives and outcomes.

(o)(r) “Programme agreement”: an agreement

between the FMC and the National Focal Point

regulating the implementation of a particular

programme.

(p)(s) “Programme grant”: the financial

contribution from the Donor States to a

programme.

(q)(t) “Programme Operator”: a public or private

entity, commercial or non-commercial, as well as

non-governmental organisations, having the

responsibility for preparing and implementing a

programme.

(r)(u) “Programme partner”: a public or private

entity, commercial or non-commercial, as well as

non-governmental organisations, international

organisations or agencies or bodies thereof,

actively involved in, and effectively contributing

to, the implementation of a programme.

(s)(v) “Project”: an economically indivisible series

of works fulfilling a precise technical function and

with clearly identifiable aims related to the

programme under which it falls. A project may

include one or more sub-projects. Without

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 9

Current text New text (with track changes) Comments

prejudice to Article 6.5, projects are selected by

the Programme Operator.

(t)(w) “Project contract”: an agreement between the

Programme Operator and the Project Promoter

regulating the implementation of a particular

project.

(u)(x) “Project grant”: a grant awarded by a

Programme Operator to a Project Promoter to

implement a project.

(v)(y) “Project partner”: a natural or legal person

actively involved in, and effectively contributing

to, the implementation of a project. It shares with

the Project Promoter a common economic or

social goal which is to be realised through the

implementation of that project.

(w)(z) “Project Promoter”: a natural or legal person

having the responsibility for initiating, preparing

and implementing a project.

(x)(aa) “Social partners”: representatives of

employers' organisations and trade unions.

Article 1.7

Visibility

Article 1.7

Visibility

The contribution of the EEA Financial Mechanism

2014-2021 to the overall objectives set out in Article

1.2 shall be brought to the attention of the general

public of the European Economic Area. All entities

involved in the implementation of the EEA Financial

Mechanism 2014-2021 share responsibility for

carrying out information and communication

activities, in accordance with the principle of

proportionality, to ensure the widest possible

dissemination of information, raise awareness and

The contribution of Iceland, Liechtenstein and

Norway through the EEA Financial Mechanism 2014-

20212021-2028 to the overall objectives set out in

Article 1.2 shall be brought to the attention of the

general public of the European Economic Area. All

entities involved in the implementation of the EEA

Financial Mechanism 2014-20212021-2028 share

responsibility for carrying out information and

communication activities, in accordance with the

principle of proportionality, to ensure the widest

possible dissemination of information, raise awareness

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 10

Current text New text (with track changes) Comments

strengthen transparency of information about funding

opportunities, beneficiaries and achievements.

and strengthen transparency of information about

funding opportunities, beneficiaries and

achievements.

Article 1.8

Financial contribution

Article 1.8 Financial contribution

1. In accordance with Article 2 of Protocol 38c, the

financial contribution from the EEA Financial

Mechanism 2014-2021 shall be € 1,548.1 million, to

be made available for commitment in annual tranches

of € 221.16 million over the period running from 1

May 2014 to 30 April 2021, inclusive.

1. In accordance with Article 2 of Protocol 38c38d, the

financial contribution from the EEA Financial

Mechanism 2014-20212021-2028 shall be

€ 1,548.7051 million., An additional € 100 million

shall be made available for projects related to

challenges experienced as a result of the invasion of

Ukraine. These contributions shall to be made

available for commitment in annual tranches of

€ 221.16257.86 million over the period running from

1 May 2014 2021 to 30 April 20212028, inclusive.

Text aligned with the Protocol

2. Annual commitment tranches refers to funds that

may during its respective year and onwards be made

available for projects, management costs, technical

assistance, and other costs related to the

implementation of the EEA Financial Mechanism

2014-2021.

2. Annual commitment tranches refers to funds that

may during its respective year and onwards be made

available for projects, management costs, technical

assistance, and other costs related to the

implementation of the EEA Financial Mechanism

2014-20212021-2028. 2. The additional financial

contribution of EUR 100 million made available for

projects related to challenges experienced as a result

of the invasion of Ukraine, as referred to in paragraph

1, shall be divided pro rata over the country specific

allocations for Beneficiary States as referred to in

Article 6 of Protocol 38d and the funds referred to in

Article 2.3 and Article 2.4.

Clarification on how the additional allocation to Ukraine should be dealt

with.

Article 1.9

Costs of the Donor States

Article 1.9 Costs of the Donor States

1. The following costs of the Donor States shall be

covered by the financial contribution:

(a) the costs of running the FMO;

1. The following costs of the Donor States shall be

covered by the financial contribution:

(a) the costs of running the FMO;

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 11

Current text New text (with track changes) Comments

(b) the costs linked to the functions of the FMC;

(c) the costs of audits performed by or on behalf of

the EFTA Board of Auditors;

(d) the costs related to appraisal, monitoring,

evaluation, reporting, and auditing performed by

or on behalf of the FMC;

(e) costs related to communication activities and

events;

(f) funding for Donor Programme Partners, as

referred to in Article 2.2;

(g) funding for IPOs, as referred to in Article 2.3;

(h) Any other costs decided by the FMC.

(b) the costs linked to the functions of the FMC;

(c) the costs of audits performed by or on behalf of

the EFTA Board of Auditors;

(d) the costs related to appraisal, monitoring,

evaluation, reporting, and auditing performed by

or on behalf of the FMC;

(e) costs related to communication activities and

events performed by or on behalf of the FMC;

(f) funding for Donor Programme Partners, as

referred to in Article 2.2;

(g) funding for IPOs, as referred to in Article 2.3;

(h)(g) any other costs decided by the FMC.

2. The costs referred to in paragraph 1 are fixed at

7.5% of the total amount of the financial contribution.

2. The costs referred to in paragraph 1 are fixed at

7.5% of the total amount of the financial contribution.

Donor State cost percentage reduced

Article 1.10

Management costs of the Beneficiary State

Article 1.10

Management costs of the Beneficiary State

General administrative costs incurred by the

Beneficiary State in relation to the implementation of

the EEA Financial Mechanism 2014-2021 shall not be

covered by the EEA Financial Mechanism 2014-2021.

Specific costs which are necessary, clearly

identifiable, and directly and exclusively related to the

management of the EEA Financial Mechanism 2014-

2021 can be covered through technical assistance. The

eligibility of such costs is set in Article 8.11.

General administrative costs incurred by the

Beneficiary State in relation to the implementation of

the EEA Financial Mechanism 2014-20212021-2028

shall not be covered by the EEA Financial Mechanism

2014-20212021-2028. Specific costs which are

necessary, clearly identifiable, and directly and

exclusively related to the management of the EEA

Financial Mechanism 2014-20212021-2028 can be

covered through technical assistance. The eligibility of

such costs is set in Article 8.11Chapter 8.

Article 1.11

Resources for the reserve

Article 1.11 Resources for the reserve

The Donor States and the Beneficiary States shall in

the MoU set aside a reserve, consisting of a minimum

of 5% of the Beneficiary State’s total allocation. Not

later than 31 December 2020, the Beneficiary State

The Donor States and the Beneficiary States shall in

the MoU set aside a reserve, consisting of a minimum

of 5% of the Beneficiary State’s total allocation. Not

later than 31 December 2020, the Beneficiary State

Reserve is deleted

Chapter 1 General provisions

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 12

Current text New text (with track changes) Comments

shall submit to the FMC a proposal on the allocation

of the reserve within the framework of the EEA

Financial Mechanism 2014-2021, either in the form of

a new programme or as an addition to an existing

programme or programmes. The FMC shall decide on

the allocation of the reserve in accordance with Article

6.3 or paragraph 6 of Article 6.9, as appropriate. The

Donor States may waive the requirement for a reserve

according to this paragraph.

shall submit to the FMC a proposal on the allocation

of the reserve within the framework of the EEA

Financial Mechanism 2014-20212021-2028, either in

the form of a new programme or as an addition to an

existing programme or programmes. The FMC shall

decide on the allocation of the reserve in accordance

with Article 6.3 or paragraph 6 of Article 6.9, as

appropriate. The Donor States may waive the

requirement for a reserve according to this paragraph.

Article 1.12

Completion of specific projects selected within

the EEA Financial Mechanism 2009-2014

Article 1.112

Completion of specific projects selected within

the EEA Financial Mechanism 20092014-

20142021

The Donor States and the Beneficiary States may

agree to set aside a maximum of 10% of the total

contribution from the EEA Financial Mechanism

2014-2021 to fund the completion of specific projects

selected within the framework of the EEA Financial

Mechanism 2009-2014. The total amount of such a

reserve and the projects to be funded from this reserve

shall be confirmed in the MoU. The rules of the EEA

Financial Mechanism 2009-2014 shall apply to the

implementation of such projects and the final date of

eligibility shall be no later than 30 April 2017.

The Donor States and the Beneficiary States may

agree to set aside a maximum of 10% of the total

contribution from the EEA Financial Mechanism

2014-20212021-2028 to fund the completion of

specific projects selected within the framework of the

EEA Financial Mechanism 20092014-20142021. The

total amount of such a reserve and the projects to be

funded from this reserve shall be confirmed in the

MoU. The rules of the EEA Financial Mechanism

20092014-2014 2021 shall apply to the

implementation of such projects and the final date of

eligibility shall be no later than 30 April 20172025.

Chapter 2 Strategic approach

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 13

Current text New text (with track changes) Comments

Chapter 2

Strategic approach

Chapter 2

Strategic approach

Article 2.1

Priority sectors

Article 2.1

Priority sectorsThematic priorities

1. With the view of achieving the objectives set out in

Article 1.2, the financial contributions are available in

the following priority sectors:

(a) Innovation, research, education and

competitiveness;

(b) Social inclusion, youth employment and poverty

reduction;

(c) Environment, energy, climate change and low

carbon economy;

(d) Culture, civil society, good governance, and

fundamental rights and freedoms;

(e) Justice and home affairs.

1. With the view of achieving the objectives set out in

Article 1.2, the financial contributions are available in

the following priority sectorsthematic priorities:

(a) Innovation, research, education and

competitivenessEuropean green transition;

(b) Social inclusion, youth employment and poverty

reductionDemocracy, rule of law and human

rights;

(c) Environment, energy, climate change and low

carbon economySocial inclusion and resilience.;

(d) Culture, civil society, good governance, and

fundamental rights and freedoms;

Justice and home affairs.

Text aligned with the Protocol

2. In order to ensure efficient and targeted use of the

financial contribution from the EEA Financial

Mechanism 2014-2021, its implementation shall be in

line with Annex 1.

2. In order to ensure efficient and targeted use of the

financial contribution from the EEA Financial

Mechanism 2014-20212021-2028, its implementation

shall be in line with Annex 1.

Article 2.2

Funding for Donor Programme Partners

Article 2.2

Funding for Donor Programme Partners

Funding shall be made available for the involvement

of Donor Programme Partners in the implementation

of the EEA Financial Mechanism 2014-2021. The

FMO shall manage the funding.

Funding shall be made available for the involvement

of Donor Programme Partners in the implementation

of the EEA Financial Mechanism 2014-20212021-

2028. The FMO shall manage the funding.

Chapter 2 Strategic approach

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 14

Current text New text (with track changes) Comments

Article 2.3

Funding for International Partner Organisations

Article 2.3

Funding for capacity building and cooperation

with international organisations and

institutionsfor International Partner

Organisations

Funding shall be made available for the involvement

of IPOs in the implementation of the EEA Financial

Mechanism 2014-2021. The FMO shall manage the

funding.

The fund for capacity building and cooperation with

international organisations and institutions referred to

in Protocol 38d shall be operated by the FMO in

accordance with rules adopted by the FMC.Funding

shall be made available for the involvement of IPOs in

the implementation of the EEA Financial Mechanism

2014-20212021-2028. The FMO shall manage the

funding.

Text aligned with the Protocol

Article 2.4

Fund for Civil Society

The fund for civil society referred to in Protocol 38d

shall be operated by the FMO in accordance with rules

adopted by the FMC.

Text aligned with the Protocol

Article 2.4

Fund for regional cooperation

Article 2.4

Fund for regional cooperation

The global fund for regional cooperation as referred to

in Protocol 38c shall be operated by the FMO in

accordance with rules adopted by the FMC.

The global fund for regional cooperation as referred to

in Protocol 38c shall be operated by the FMO in

accordance with rules adopted by the FMC.

Deleted

Article 2.5

Memorandum of Understanding

Article 2.5

Memorandum of Understanding

1. In order to ensure efficient and targeted

implementation the Donor States shall conclude an

MoU with each Beneficiary State.

1. In order to ensure concentration and to ensure

efficient and targeted implementation the Donor States

shall conclude an MoU with each Beneficiary State.

Text aligned with the Protocol

2. The MoU shall establish a framework for

cooperation and contain the following elements:

2. The MoU shall establish a framework for

cooperation and contain the following elements:

Chapter 2 Strategic approach

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 15

Current text New text (with track changes) Comments

(a) the designation of national entities involved in the

implementation of the EEA Financial Mechanism

2014-2021 and identification of their functions in the

national management and control structures (Annex A

to the MoU).

(b) an implementation framework (Annex B to the

MoU) consisting of the following financial and

substantive parameters:

(i) a list of agreed programmes, the financial

contribution from the EEA Financial

Mechanism 2014-2021 and from the

Beneficiary State;

(ii) identification of programmes, their

objective, their main focus, as appropriate,

the grant amount and amount of co-

financing by programme, the bilateral

ambitions as well as any specific concerns

relating to target groups, geographical areas

or other issues;

(iii) identification of programme operators, as

appropriate;

(iv) identification of Donor Programme

Partners, as appropriate;

(v) identification of IPOs, as appropriate;

(vi) identification of pre-defined projects to be

included in relevant programmes.

(a) the designation of national entities involved in the

implementation of the EEA Financial Mechanism

2014-20212021-2028 and identification of their

functions in the national management and control

structures (Annex A to the MoU).

(b) an implementation framework (Annex B to the

MoU) consisting of the following financial and

substantive parameters:

(i) a list of agreed programmes, the financial

contribution from the EEA Financial

Mechanism 2014-20212021-2028 and

from the Beneficiary State;

(ii) identification of programmes, the

Programme Operators, their objective(s),

their main focus, as appropriate, the grant

amount and amount of co-financing by

programme, the bilateral ambitions as well

as any specific concerns relating to target

groups, geographical areas or other

issuesthe implementation of the

programmes;

(iii) conditions and/or specific concerns at

Beneficiary State level relating to target

groups, geographical areas or other issues;

(i) identification of programme operators, as

appropriate;

(ii)(iv) identification of Donor Programme

Partners, as appropriate;

(v) identification of IPOs, as appropriate;

(iii)(vi) identification of pre-defined projects to be

included in relevant programmes.

Reference to ‘conditions’ added, in line with Protocol. Text reordered to

better align with template structure. Programme Operators should always be

designated in the MoU. Some language rationalisations.

Chapter 2 Strategic approach

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 16

Current text New text (with track changes) Comments

3. Annexes A and B may be amended through an

exchange of letters between the FMC and the National

Focal Point.

3. Annexes A and B may be amended through an

exchange of letters between the FMC and the National

Focal Point.

4. The provisions of the MoU shall be interpreted in a

manner consistent with this Regulation.

4. The provisions of the MoU shall be interpreted in a

manner consistent with this Regulation.

5. A template for the MoU is provided in Annex 2. 5. A template for the MoU is provided in Annex 2.

Article 2.6

Strategic Report

Article 2.6

Strategic Country Report

The Annual Programme Report and the Strategic Report are merged into

one Country Report, to alleviate the burden on Beneficiary State entities

and allow them to organise their internal work more efficiently.

1. The National Focal Point shall submit to the FMC

an annual strategic report on its implementation of the

EEA Financial Mechanism2014-2021 and Norwegian

Financial Mechanism 2014-2021 covering all

programmes and bilateral activities implemented in

the Beneficiary State, except for programmes operated

by the FMO, inter-governmental organisations or

Donor State entities in accordance with Article 6.13.

The Strategic Report shall form the basis of

discussions at the annual meeting, and shall be subject

to approval by the FMC.

1. The National Focal Point shall submit to the FMC

an annual strategic Country rReport on its

implementation of the EEA Financial Mechanism

2014-20212021-2028 and Norwegian Financial

Mechanism 2014-20212021-2028 covering all

programmes and bilateral activities implemented in

the Beneficiary State, except for programmes operated

by the FMO, inter-governmental organisations or

Donor State entities in accordance with Article 6.13.

The Strategic Country Report shall form the basis of

discussions at the annual meeting, and shall be subject

to approval by the FMC.

2. The Strategic Report shall follow the template

provided by the FMC and provide an assessment of the

contribution of the EEA Financial Mechanism 2014-

2021 towards the achievement of the two overall

objectives as described in Article 1.2, information on

how common values as referred to in Article 1.3 have

been addressed in the programmes, the main trends

that may have affected the context where the

programmes are implemented, and a summary of the

main risks and mitigating actions taken to address

these risks.

2. The Strategic Country Report shall follow the

template provided by the FMC and provide an

assessment of the contribution of the EEA Financial

Mechanism 2014-20212021-2028 towards the

achievement of the two overall objectives as described

in Article 1.2, information on how common values and

principles as referred to in Article 1.3 have been

addressed in the programmes, the main trends that may

have affectinged the context where the programmes

are implemented, a presentation and assessment of the

main results achieved at programme and country level,

and a summary of the main risks and mitigating

actions taken to address these risks.

Chapter 2 Strategic approach

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 17

Current text New text (with track changes) Comments

3. The Strategic Report shall be written in English and

submitted to the FMC at least two months before the

annual meeting unless otherwise agreed. The FMC

may request additional information when the report

submitted is incomplete or unclear. The National

Focal Point shall provide the information requested

within one month and, where appropriate, revise the

report.

3. The reporting period for the Country Report shall be

the calendar year. The Strategic Rreport shall be

written in English and submitted to the FMC at least

two months before the annual meeting unless

otherwise agreednot later than the last day of February

each year. The FMC may request additional

information when the report submitted is incomplete

or unclear. The National Focal Point shall provide the

information requested within one month and, where

appropriate, revise the report.

4. The final Strategic Report shall be submitted within

six months of the submission of the last final

programme report but not later than 31 August 2025.

4. The fFinal Strategic Country Report shall be

submitted within six months of the submission of the

last final programme report but not later than 31

August 20252032.

5. The approved Strategic Report shall be published on

the website of the National Focal Point within one

month of the approval by the FMC.

5. The approved Strategic Country Report shall be

published on the website of the National Focal Point

within one month of the approval by the FMC.

Article 2.7

Annual meeting

Article 2.7

Annual meeting

1. An annual meeting shall be held between the FMC

and the National Focal Point. The National Focal Point

is responsible for organising the meeting and shall,

when appropriate, arrange for site visits.

1. An annual meeting shall be held between the FMC

and the National Focal Point. The National Focal Point

is responsible for organising the meeting and shall,

when appropriate, arrange for site visits.

2. By way of derogation from paragraph 1, the FMC

and the National Focal Point may agree not to organise

an annual meeting.

2. By way of derogation from paragraph 1, the FMC

and the National Focal Point may agree not to organise

an annual meeting.

3. The annual meeting shall allow the FMC and the

National Focal Point to examine progress achieved

over the previous reporting periods and agree on any

necessary measures to be taken. The annual meeting

shall provide a forum for discussion of issues of

bilateral interest.

3. The annual meeting shall allow the FMC and the

National Focal Point to examine progress achieved

over the previous reporting periods, discuss risks and

agree on any necessary measures to be taken. The

annual meeting shall provide a forum for discussion of

issues of bilateral interest.

Discussion of ‘risks’ introduced into Annual Meeting

Chapter 2 Strategic approach

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 18

Current text New text (with track changes) Comments

4. The timing of the annual meeting shall be agreed by

FMC and the National Focal Point at least four months

prior to the meeting.

4. The timing of the annual meeting shall be agreed by

the FMC and the National Focal Point at least four

months prior to the meeting.

5. Representatives of the Audit Authority, Certifying

Authority, Programme Operators, programme partners

and members of the Joint Committee for Bilateral

Funds, may be invited to attend the meeting.

5. Representatives of the Audit Authority, and the

Certifying Authority shall be invited to attend the

meeting., Programme Operators, programme partners

and members of the Joint Committee for Bilateral

Funds, may be invited to attend the meetingparticipate

as appropriate.

6. The National Focal Point is responsible for

preparing the draft agenda, which shall reflect the

main issues set out in the Strategic Report. The

agenda’s final version shall be agreed upon between

the FMC and the National Focal Point at least one

week before the meeting.

6. The National Focal Point is responsible for

preparing the draft agenda, which shall reflect the

main issues set out in the Strategic Country Report.

The agenda’s final version shall be agreed upon

between the FMC and the National Focal Point at least

one week before the meeting.

7. Decisions taken at the annual meeting shall be set

out in the agreed minutes. The National Focal Point is

responsible for the drafting of the minutes from the

meeting, summarising the main points and the action

points discussed at the meeting and following the

structure of the agenda. These minutes shall be

decision oriented, follow-up oriented and task

oriented.

7. Decisions taken at the annual meeting shall be set

out in the agreed minutes. The National Focal Point is

responsible for the drafting of the minutes, following

the structure of the agenda from of the meeting. The

minutes shall summarise main messages, the decisions

taken and any agreed follow-up measures.,

summarising the main points and the action points

discussed at the meeting and following the structure of

the agenda. These minutes shall be decision oriented,

follow-up oriented and task oriented. The National

Focal Point shall share the draft minutes with the FMC

for comments no later than two weeks following the

date of the meeting.

To simplify and shorten the minutes from the AM.

.

8. The minutes shall be published on the website of the

National Focal Point within one month of the

agreement of the final version of the minutes between

the FMC and the National Focal Point.

8. The minutes shall be published on the website of the

National Focal Point within one month of the

agreement of the final version of the minutes between

the FMC and the National Focal Point.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 19

Current text New text (with track changes) Comments

Chapter 3

Information and Communication

Chapter 3

Information and Communication

Article 3.1

General provisions

Article 3.1

General provisions

1. Beneficiary States, Programme Operators, Project

Promoters and entities acting as partners in the

preparation and/or implementation of the EEA

Financial Mechanism 2014-2021, shall widely and

effectively disseminate to the public information on

the EEA Financial Mechanism 2014-2021, its

programmes and projects using tools and

communication methods at the appropriate level.

1. Beneficiary States, Programme Operators, Project

Promoters and entities acting as partners in the

preparation and/or implementation of the EEA

Financial Mechanism 20142021-20212028, shall

through their information and communication

activities widely and effectively disseminate to the

public information on the EEA Financial Mechanism

20142021-20212028, its programmes and projects

using tools and communication methods at the

appropriate level.

The public is not considered a mandatory audience for communication

about the Grants. Instead, the entities communicating should define their

audiences in their strategies.

2. Information and communication measures shall be

implemented in accordance with this Regulation and

the Information and Communication Requirements in

Annex 3.

2. Information and communication measures shall be

implemented in accordance with this Regulation and

the Information and Communication Requirements in

Annex 3.

In order to create a clearer and more coherent set of rules regarding

communication, the Regulation will no longer have an annex containing

rules on Communication. Most of the content of the current Annex 3 has

been reformulated and moved to this chapter or deleted, while a few

topics, such as technical requirements for websites and social media will

be moved to the Communication and Design Manual referred to in

paragraph 3.

2. Information and communication activities relating

to the EEA Financial Mechanism 2021-2028 shall aim

to:

(a) increase public awareness and inform

relevant audiences about the contribution and

role played by the Donor States;

(b) ensure transparency and legitimacy of the

contribution from the Donor States;

(c) create a coherent picture of the EEA

Financial Mechanism in the Beneficiary and

Donor States;

This section was previously in Annex 3, under point 1.2 Aims. Some

minor changes have been made to the wording.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 20

Current text New text (with track changes) Comments

(d) inform potential and actual beneficiaries and

partners about the EEA Financial

Mechanism; and

(a)(e) communicate the results of the

contribution from the EEA Financial

Mechanism to the Beneficiary States.

3. In addition to the rules contained in this Regulation,

the FMC shall provide a Communication and Design

Manual, which shall provide guidance, and contain

rules regarding:

(a) the design and correct usage of logos;

(b) visual identity;

(c) branding and key messages; and

(d) websites and social media.

All communication and information activities and

physical or digital communication materials relating to

the implementation of the EEA Financial Mechanism

2021-2028 shall comply with these rules.

Compared to point 5 of Annex 3 of the 14-21 Regulation, this paragraph

clarifies the purpose of the Communication and Design Manual provided

by the FMC. It should be generally regarded as a guidance document,

except where it formulates obligations regarding the topics listed in this

paragraph.

4. Organisers of information and communication

events in connection with the implementation of the

EEA Financial Mechanism 2021-2028, its

programmes and projects, shall make the contribution

of the Donor States explicit and visible.

This is a continuation of the rule currently repeated in Annex 3 Points

2.1.3, 2.2.3 and 2.3.3

Article 3.2

Responsibilities of the National Focal Point

Article 3.2

Responsibilities of the National Focal Point

1. The National Focal Point shall provide information

to the public on the existence in the Beneficiary State

of the EEA Financial Mechanism 2014-2021, its

objectives, its implementation and overall impact, as

well as on cooperation with, inter alia, Donor State

entities. This will be provided in accordance with the

Information and Communication Requirements in

Annex 3.

1. The National Focal Point shall provide information

to the publicpotential and existing beneficiaries and

partners, as well as relevant audiences and

stakeholders, on the existence in the Beneficiary State

of the EEA Financial Mechanism 2014-20212021-

2028 and its programmes in the Beneficiary State, its

objectives, its implementation and overall impact,

achievements and results, as well as on cooperation

with, inter alia, Donor State entities. This will be

The mandatory target groups for communication activities performed by

the NFP have been specified, and the general public has been replaced

with a reference to relevant audiences and stakeholders. In addition, the

words used about the different topics that the entities should communicate

about have been streamlined.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 21

Current text New text (with track changes) Comments

provided in accordance with the Information and

Communication Requirements in Annex 3.

2.The National Focal Point shall as a minimum:

(a) draw up and implement a communication strategy

for the EEA Financial Mechanism 2014-2021;

(b) organise at least three major information activities

on the implementation of the EEA Financial

Mechanism 2014-2021;

(c) establish a dedicated website on the EEA and

Norwegian Financial Mechanisms 2014-2021 in the

language(s) of the Beneficiary State and in English;

and

(d) designate one person to be responsible for

information and communication who shall coordinate

the implementation of the information and

communication activities in the Beneficiary State.

This person shall support and act as coordinator for the

Programme Operators’ information and

communication activities.

2.The National Focal Point shall as a minimum:

(a) draw up and implement a communication strategy

for the EEA Financial Mechanism 2014-2021;

(b) organise at least three major information activities

on the implementation of the EEA Financial

Mechanism 2014-2021;

(c) establish a dedicated website on the EEA and

Norwegian Financial Mechanisms 2014-2021 in the

language(s) of the Beneficiary State and in English;

and

(d) designate one person to be responsible for

information and communication who shall coordinate

the implementation of the information and

communication activities in the Beneficiary State.

This person shall support and act as coordinator for the

Programme Operators’ information and

communication activities.

The provisions in this paragraph have been expanded and given separate

paragraphs, in order to incorporate the provisions in Annex 3.

2. The National Focal Point shall carry out its

information and communication activities in

accordance with the communication strategy

developed in accordance with Article 3.6. The

National Focal Point shall report on the

implementation of the communication strategy and

submit a plan for the activities over the next year in the

Country Report.

This reflects existing rules in Article 3.2.2.a and Annex 3 points 2.1.2 and

2.1.3

3. The National Focal Point shall organise at least two

major information activities on the progress and

results of the implementation of the EEA Financial

Mechanism 2021-2028, including

(a) a major launching event, publicising the

contribution of the Donor States and

This is a somewhat shortened version of an existing rule in Annex 3 point

2.1.1. With a view to simplification and streamlining, the number of major

information activities that the NFP is required to organise has been

reduced from 3 to 2.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 22

Current text New text (with track changes) Comments

encouraging cooperation with entities in the

Donor States; and

(a)(b) a major closing event publicising

the achievements and results of the

contribution of the Donor States and

highlighting the bilateral cooperation with

Donor State entities.

4. The National Focal Point shall establish a

communication network of Programme Operators to

support and coordinate the information and

communication activities of the Programmes. Through

regular meetings with the network, the National Focal

Point shall provide guidance and training to the

Programme Operators. The National Focal Point shall

arrange at least one communication workshop for

Programme Operators per year. Embassies of the

Donor States shall be invited to participate in the

network.

The obligation to establish a communication network for POs is currently

an obligation bestowed on the “designated person” at the NFP in Annex 3

point 2.1.

The obligation to arrange at least one annual communication workshop is

new, intended to facilitate the spread of information and coordination of

communication between the NFP, Donor State embassies, and the POs and

PPs.

5. The National Focal Point shall name a dedicated

communications coordinator to coordinate the

implementation of information and communication

activities in the Beneficiary States. This person shall:

(a) facilitate the network described in paragraph

4;

(b) participate in a communication network

established by the FMO with all national

communication coordinators; and

(a)(c) cooperate with the Embassies of the

Donor States and the Joint Committee for

Bilateral Funds, and coordinate

communication on bilateral cooperation.

This paragraph is a development on the provision in Annex 3 point 2.1.

“Person” has been replaced with “dedicated communications coordinator”,

to emphasise the need for continuity in the role.

The participation in a network established by the FMO is a new obligation,

intended to facilitate the spread of information and coordination of

communication between the FMO and the NFPs, and through the NFPs to

POs and PPs.

6. The National Focal Point shall, within six months of

the date of the last signature of the Memorandum of

Understanding, establish a dedicated website within

the web environment hosted by the FMC in the

While most of the web requirements will be reflected in the

Communication and Design Manual, some of them have been kept here.

Additionally, some requirements are new, such as the six-month deadline

and the requirement for a social media presence through dedicated social

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 23

Current text New text (with track changes) Comments

language(s) of the Beneficiary State and in English. It

shall by the same deadline establish a social media

presence through a dedicated channel or channels for

the EEA and, where applicable, Norwegian Financial

Mechanisms 2021-2028. The website and social media

presence shall comply with the web requirements

established by the FMC in the Communication and

Design Manual referred to in Article 3.1.3. The

website shall contain webpages for all the Programmes

in the Beneficiary State. The National Focal Point

shall make sure sufficient resources are allocated to

regularly update the website, including the webpages

for all Programmes, in the language(s) of the

Beneficiary State and in English.

media channels.

The requirement to set up the website within the “web environment hosted

by the FMC” is new. The plan is to establish a multisite system for the

management of all EEA and Norway Grants websites, to increase cost-

efficiency and consistency. The development of the multisite system will

be done in consultation with the NFPs.

The requirement for the NFPs website to contain pages for all programmes

is new, and is intended to ensure that all information is available in one

place for those seeking information about the grants in the Beneficiary

State. Several NFPs do this already, and POs will still be encouraged to

use their websites and/or other channels to spread information about their

programmes and calls.

7. The National Focal Point shall inform the FMC in

advance of any major information activities in order to

provide the FMC the opportunity of participating.

This reflects the existing rule in Annex 3 point 2.1.3.

3. The National Focal Point shall ensure that the

Programme Operators fulfil their information and

communication obligations in accordance with this

Regulation and the Information and Communication

Requirements in Annex 3.

83. The National Focal Point shall ensure that the

Programme Operators fulfil their information and

communication obligations in accordance with this

Regulation and the Information and Communication

Requirements in Annex 3., and that all entities

involved in the preparation and/or implementation of

the EEA Financial Mechanism 2021-2028 in the

Beneficiary State, contribute, as appropriate, to the

dissemination of the information referred to in

paragraph 1.

The current paragraphs 3 and 4 have been combined, as they are closely

related

4. The National Focal Point shall ensure that all

entities involved in the preparation and/or

implementation of the EEA Financial Mechanism

2014-2021 in the Beneficiary State, contribute, as

appropriate, to the dissemination of the information

referred to in paragraph 1.

4. The National Focal Point shall ensure that all

entities involved in the preparation and/or

implementation of the EEA Financial Mechanism

2014-2021 in the Beneficiary State, contribute, as

appropriate, to the dissemination of the information

referred to in paragraph 1.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 24

Current text New text (with track changes) Comments

Article 3.3

Responsibilities of the Programme Operator

Article 3.3

Responsibilities of the Programme Operator

1. The Programme Operator shall comply with the

Information and Communication Requirements in

Annex 3. It shall provide information to the public on

the existence, the objectives, the implementation and

achievements of the programme, as well as on the

cooperation with, inter alia, Donor State entities.

1. The Programme Operator shall comply with the

Information and Communication Requirements in

Annex 3. It shall provide information to the

publicpotential beneficiaries and partners as well as

other relevant audiences and stakeholders on the

existence, the objectives, the implementation, and

achievements and results of the programme, as well as

on the cooperation with, inter alia, Donor State

entities.

The general public has been replaced with a reference to relevant

audiences and stakeholders. In addition, the words used about the different

topics that the entities should communicate about have been streamlined.

2. The Programme Operator shall as a minimum:

(a) draw up and implement a communication plan for

the programme;

(b) organise at least two major information activities

on progress in the programme and its projects; and

(c) establish a dedicated website or webpage in the

programme in the language(s) of the Beneficiary State

and in English.

2. The Programme Operator shall as a minimum:

(a) draw up and implement a communication plan for

the programme;

(b) organise at least two major information activities

on progress in the programme and its projects; and

(c) establish a dedicated website or webpage in the

programme in the language(s) of the Beneficiary State

and in English.

The provisions in this paragraph have been expanded and given separate

paragraphs, in order to incorporate the provisions in Annex 3.

2. The Programme Operator shall carry out its

information and communication activities in

accordance with a communication strategy developed

alongside the Programme Agreement and submitted

within two months of the signature of the Programme

Agreement or before the launch of the first call,

whichever is earlier. The Programme Operator shall

annually report on the implementation of the

communication strategy and submit a plan for the

activities over the next year.

This reflects existing rules in Article 3.3.2.a and Annex 3 points 2.2.2 and

2.2.3

The deadline to submit the communication strategy has been pushed back

compared to the previous rule (submitted at the same time as the draft

Programme Agreement), allowing for more time to finalise. However, it is

important that communication planning is linked to the development of the

programme.

The requirement to report annually on communication activities is a

continuation of the requirement to report on communication activities in

the Annual Programme Report. Because there will no longer be an Annual

Programme Report, the modality for the reporting has been removed.

Additionally, the requirement for a plan for the activities over the next

year is new, intended to give a better overview of communication

activities to be carried out over the next year.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 25

Current text New text (with track changes) Comments

3. The Programme Operator shall organise at least two

major information activities on the progress, results

and achievements of the programme and the

contribution of the Donor States. Where appropriate,

this can be combined with the information activities of

the National Focal Point described in Article 3.2.3

This is a somewhat shortened version of an existing rule in Annex 3 point

2.2.2

With a view tolessening the workload of Programme Operators the

information activities of the PO can be combined with the information

activities of the NFP (e.g. opening and/or closing events) where

appropriate.

4. The Programme Operator shall name a dedicated

person to take part in the communication network

organised by the National Focal Point as described in

Article 3.2.4.

The participation by a dedicated person in a network established by the

NFP is a new obligation, intended to facilitate the spread of information

and coordination of communication from the FMO through the NFPs to

POs and PPs.

5. The Programme Operator shall inform the FMC,

NFP and Embassies of the Donor States in advance of

any major information activities to allow for their

participation.

This is a slightly simplified version of the existing rule in Annex 3 point

2.2.3.

6. The Programme Operator shall include information

about the EEA Financial Mechanism 2021-2028 and

the programme on its own website. The Programme

Operator shall ensure that the National Focal Point has

all information required for the National Focal Point

to fulfil the web requirements in Article 3.2.6.

Most of the web requirements concerning the PO have been removed, as

the NFP will be required to include all relevant programme information on

the national website. However, this requires participation and cooperation

from the POs, and the obligation to provide the NFP with the necessary

information has therefore been added.

7. The Programme Operator shall ensure that photo

and video material from a selection of projects is

uploaded to the media library provided by the FMC.

Guidance regarding the projects and material to select

will be given in the Communication and Design

Manual referred to in Article 3.1.3.

This rule is new, and is intended to emphasise that collecting high quality

photo and video material from key projects is important to the

communication work done on all levels. Further guidance will be provided

in the Communication Manual

3. The Programme Operator shall ensure that the

Project Promoters and their partners fulfil their

information and communication obligations in

83. The Programme Operator shall ensure that the

Project Promoters and their partners fulfil their

information and communication obligations in

accordance with this Regulation and provide them

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 26

Current text New text (with track changes) Comments

accordance with this Regulation and the Information

and Communication Requirements in Annex 3.

with training and support in order to enable them to

meet their communication objectives. and the

Information and Communication Requirements in

Annex 3.

Article 3.4

Responsibilities of the Project Promoter and

project partners

1. The Project Promoter and project partners shall

provide information to relevant audiences and

stakeholders on the existence of the project they are

implementing, its objectives, achievements and

results, as well as the support from the EEA Financial

Mechanism 2021-2028 and any bilateral cooperation

with entities from the Donor States. They shall ensure

that those taking part in the project have been informed

of the funding from the relevant programme and the

Donor States.

This is a slight modification of the rules in Annex 3 point 2.3.1. Project

partners have been included in the rule, “the widest possible audience” has

been replaced with “relevant audiences and stakeholders”, and the words

used about the different topics that the entities should communicate about

have been streamlined.

This is a reflection of the current rule in Annex 3 point 2.3.3.

2. A Project Promoter implementing a pre-defined

project or a project with a total project budget larger

than € 500,000 shall carry out its information and

communication activities in accordance with a

communication strategy submitted prior to signature

of the project contract. The implementation of the

communication strategy shall be reported on to the

Programme Operator.

This is a development on existing rules in Annex 3 points 2.3.2 and 2.3.3.

The threshold for requiring a communication strategy only for PDPs and

projects over € 500K is new, and intends to lessen the burden on small

projects.

3. A Project Promoter implementing a pre-defined

project or a project with a total project budget larger

than € 1,000,000 shall organise at least one

information activity on progress, achievements and/or

results in the project.

This is a significant easing of the rule in Annex 3 point 2.3.2, which

currently requires two information activities from all PPs, but 3 where the

grant size is larger than € 500,000.

4. A Project Promoter with a total project budget larger

than € 100,000 and whose project finances a physical

object, infrastructure or construction, shall put up a

billboard at the site of each such operation during the

implementation of the project. Such billboards shall

This is a reflection of the current rule in Annex 3 point 2.3.3. The

threshold has been increased from € 50,000 to correspond with the

threshold under the ESF. The calculation method (total project budget vs.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 27

Current text New text (with track changes) Comments

comply with the requirements set out in the

Communication and Design Manual provided by the

FMC referred to in Article 3.1.3.

total public contribution) has also been updated to match the provision in

the CPR.

5. The Project Promoter shall replace the billboard

mentioned in point 4 with a permanent

commemorative plaque in line with the designs and

other requirements provided in the Communication

and Design Manual not later than six months after the

completion of the project.

This is a reflection of the current rule in Annex 3 point 2.3.3. with a

somewhat simplified wording. Requirements regarding size and visibility

will be laid out in the design manual.

6. The Project Promoter shall make information about

the project available on the web and/or on social

media, in accordance with the web requirements

contained in the Communication and Design Manual

referred to in Article 3.1.3.

7. Donor project partners shall provide information on

their involvement and the results of the project to

relevant audiences and stakeholders in the Donor

State. Information about the project shall be available

on the website and/or the social media channels of the

Partner.

This is a slight modification of the current rule in Annex 3 point 3.2. The

general public has been replaced with relevant audiences and stakeholders

in the Donor States.

Article 3.5

Content of the communication strategies

This Article is new, and is intended to give an overview of the content of

the templates for communication strategies that the FMO will develop..

The communication strategies prepared by the

National Focal Point in accordance with Article 3.2.2,

the Programme Operator in accordance with Article

3.3.2 and Project Promoters in accordance with Article

3.4.2, shall be based on templates provided by the

FMC, and shall contain

(a) a description of the objectives of the

communication;

(b) the intended target groups;

(c) the key messages to be conveyed in the

communication;

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 28

Current text New text (with track changes) Comments

(d) channels for communication, including how

the entity will make use of social media;

(e) the communication activities to be carried

out, including a description of the required

information activities in accordance with

Articles 3.2.3, 3.3.3 or 3.3.3 where

applicable;

(a)(f) a timeframe and budget for the

implementation of the communication

strategy;

(g) an indication of how the information and

communication measures are to be measured

and assessed, including the relevant key

performance indicators; and

(b)(h) information on the administrative

departments or bodies responsible for

implementation of the information and

communication measures, including a

contact person, which for the National Focal

Point and the Programme Operator shall be

the communications coordinator as described

Articles 3.2.4 and 3.3.4.

The requirement for all entities to describe their use of social media is

new, and reflects the increasing importance of social media to

communication.

Article 3.6

Development and Review of the communication

strategy of the National Focal Point

This is a continuation of the current rule in Annex 3 point 2.1.2, with a few

changes as described under.

1. The National Focal Point shall base the

development of its communication strategy on target

group analysis established through a baseline study.

In the current period, NFPs were required to perform a SWOT analysis,

and Beneficiary States receiving more than € 100M were required to

consider performing a baseline study. This was considered insufficient in

the mid-term review of communications, which criticized the lack of

requirements regarding target group analyses for the communication

strategies of the NFPs. This rule aims to follow up on that

recommendation.

2. The National Focal Point shall submit the

communication strategy to the FMC within six months

of the date of last signature of the Memorandum of

Understanding.

Chapter 3 Information and Communication

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 29

Current text New text (with track changes) Comments

3. In the absence of comments made by the FMC

within two months of the receipt of the communication

strategy, the strategy shall be deemed to be accepted.

Comments regarding the communication strategy

shall be addressed by The National Focal Point in the

form of a revised communication strategy sent to the

FMC within one month.

4. In the absence of further comments by the FMC

within one month of submission of a revised

communication strategy, the strategy shall be deemed

to be accepted

5. The need to amend the communication strategy

shall be assessed as new programmes are approved

and in the Strategic Report. The amended

communication strategy shall be submitted to the FMC

for comments.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 30

Current text New text (with track changes) Comments

Chapter 4

Bilateral relations

Chapter 4

Bilateral relations

Article 4.1

General principles

Article 4.1

General principles

1. In order to contribute to the overall objective of

strengthening the relations between the Donor States

and the Beneficiary States, the preparation and

implementation of the EEA Financial Mechanism

2014-2021 shall, where appropriate, be carried out in

partnership.

1. In order to contribute to the overall objective of

strengthening the relations between the Donor States

and the Beneficiary States, the preparation and

implementation of the EEA Financial Mechanism

2014-20212021-2028 shall, where appropriate, be

carried out in partnership. Partnership may, inter alia,

take the form of donor partnership programmes, donor

partnership projects and/or bilateral initiatives.

The three paragraphs of Article 4.1. are merged into one, which refers to the

three main forms of collaboration in partnership: donor partnership

programmes, donor partnership projects and bilateral initiatives.

The three forms are explained in more detail in the articles below. An article

with a description/definition of what is a “bilateral initiative” is added

(Article 4.5).

“inter alia” reflects that these types of partnerships are the main ones, but

that they are not exhaustive (for example, activities strengthening bilateral

relations funded by programme management costs or TA which are done in

partnership between donor and beneficiary state entities).

2. Partnership may, inter alia, take the form of donor

partnership programmes and/or donor partnership

projects.

2. Partnership may, inter alia, take the form of donor

partnership programmes and/or donor partnership

projects.

3. The relations between the Donor States and the

Beneficiary States shall also be strengthened through

the implementation of activities aiming at increased

strategic cooperation, networking and exchange of

knowledge between entities in the Donor States and in

the Beneficiary States, and through other joint

initiatives beyond the programmes aiming at

strengthening the relations between the Donor States

and the Beneficiary States.

3. The relations between the Donor States and the

Beneficiary States shall also be strengthened through

the implementation of activities aiming at increased

strategic cooperation, networking and exchange of

knowledge between entities in the Donor States and in

the Beneficiary States, and through other joint

initiatives beyond the programmes aiming at

strengthening the relations between the Donor States

and the Beneficiary States.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 31

Current text New text (with track changes) Comments

Article 4.2

Joint Committee for Bilateral Funds

Article 4.2

Joint Committee for Bilateral Funds

The Article on the JCBF is moved to Article 4.9.

1. The National Focal Point shall establish a Joint

Committee for Bilateral Funds as soon as possible

after the signature of the MoU. Its tasks shall, inter

alia, include:

(a) discussing matters of bilateral interests,

identifying initiatives and reviewing the overall

progress towards reaching the objective of

strengthened bilateral relations;

(b) adopting the Work Plan for the fund for bilateral

relations to be discussed at the annual meeting;

and

(c) identifying and allocating bilateral funds to

programmes of bilateral interest.

1. The National Focal Point shall establish a Joint

Committee for Bilateral Funds as soon as possible

after the signature of the MoU. Its tasks shall, inter

alia, include:

(a) discussing matters of bilateral interests,

identifying bilateral initiatives and reviewing the

overall progress towards reaching the objective of

strengthened bilateral relations;

(b) adopting the Work Plan for the fund for bilateral

relations to be discussed at the annual meeting;

and

identifying and allocating bilateral funds to

programmes of bilateral interest.

2. Any comments to the Work Plan made at the annual

meeting shall be taken into account by the Joint

Committee for Bilateral Funds.

2. Any comments to the Work Plan made at the annual

meeting shall be taken into account by the Joint

Committee for Bilateral Funds.

3. The Joint Committee for Bilateral Funds shall be

chaired by the National Focal Point and composed of

representatives from the Donor States and from the

Beneficiary States, including the respective ministry

of foreign affairs.

3. The Joint Committee for Bilateral Funds shall be

chaired by the National Focal Point and composed of

representatives from the Donor States and from the

Beneficiary States, including the respective ministry

of foreign affairs.

4. The Joint Committee for Bilateral Funds shall meet

at least once a year, prior to the annual meeting.

4. The Joint Committee for Bilateral Funds shall meet

at least once a year, prior to the annual meeting.

5. The composition, role and functioning of the Joint

Committee for Bilateral Funds shall be further defined

in the Bilateral Fund Agreement between the FMC and

the National Focal Point. The Bilateral Fund

Agreement template is provided in Annex 4.

5. The composition, role and functioning of the Joint

Committee for Bilateral Funds shall be further defined

in the Bilateral Fund Agreement between the FMC and

the National Focal Point. The Bilateral Fund

Agreement template is provided in Annex 4.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 32

Current text New text (with track changes) Comments

6. The National Focal Point shall, within two months

of the last signature of the MoU , submit to the FMC a

proposal on the composition, role and functioning of

the Joint Committee for Bilateral Funds. If the

Beneficiary State receives support under both the EEA

and the Norwegian Financial Mechanisms, the two

months shall count from the date of the last signature

of whichever of the two MoUs is signed last.

6. The National Focal Point shall, within two months

of the last signature of the MoU , submit to the FMC a

proposal on the composition, role and functioning of

the Joint Committee for Bilateral Funds. If the

Beneficiary State receives support under both the EEA

and the Norwegian Financial Mechanisms, the two

months shall count from the date of the last signature

of whichever of the two MoUs is signed last.

Article 4.3

Donor partnership programmes

Article 4.2

Donor partnership programmes

1. The purpose of donor partnership programmes is to

facilitate networking, exchange, sharing and transfer

of knowledge, technology, experience and good

practices between public entities in the Donor States

and the Beneficiary States.

1. The purpose of donor partnership programmes is to

facilitate networking, exchange, sharing and transfer

of knowledge, technology, experience and bestgood

practices between public entities in the Donor States

and the Beneficiary States at programme level.

2. The Donor States shall through the MoU designate

one or more Donor Programme Partners for each

programme identified according to paragraph 2(b)(iv)

of Article 2.5. Donor Programme Partners can also be

agreed upon by the FMC and the National Focal Point

through an exchange of letters.

2. The Donor States shall through the MoU designate

oOne or more Donor Programme Partners for each

programme may be identified in the Memorandum of

Understanding for each programme according to

paragraph 2(b)(iv) of Article 2.5. Donor Programme

Partners can also be agreed upon by the FMC and the

National Focal Point through an exchange of letters.

”shall” has been replaced by “may” in order to make it clear that there is not

a requirement to have a DPP in all programmes. The text is further adapted

to reflect that appointing the DPPs happens in agreement between Donor

States and Beneficiary States.

3. The Donor Programme Partner(s) shall be invited to

advise on the preparation and implementation of the

donor partnership programme.

3. The Donor Programme Partner shall act as expert

advisor to the Programme and facilitator of bilateral

cooperation. The Donor Programme Partner shall be

invited to advise on advise on and contribute to the

preparation and implementation of the donor

partnership Pprogramme.

The tasks of the Donor Programme Partner in the

preparation of the programme include, inter alia:

(a) contributing to the preparation of the Concept

Note and the Programme Agreement; and

(b) advising on stakeholder consultations, where

applicable.

The purpose is to clarify and strengthen the role of the DPPs and to split the

DPP tasks between (1) the programme development stage and (2) the

programme implementation stage.

Ideally, all DPP tasks would be listed in one article, to have a clear overview

of the DPP tasks. However, while some of these tasks are performed in the

scope of the Cooperation Committee, and other tasks are not (e.g. tasks

related to the programme development), they are referred to in different

articles.

In view of clarifying and strengthening the DPP role, “shall be invited to

advise” is replaced by “shall advise and contribute to”. This should reflect

a more active DPP involvement with regard to some of the tasks (i.e., the

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 33

Current text New text (with track changes) Comments

The tasks of the Donor Programme Partner in the

implementation of the Programme include, inter alia,

those that are listed in Article 4.3.3 and, where

applicable, those that are listed in Articles 7.6.4 and

7.7.2.

preparation of the Concept Note and the decisions on the bilateral funds in

the programme).

Article 4.4

Cooperation Committee

Article 4.3

Cooperation Committee

1. The Programme Operator of a donor partnership

programme or a programme implemented in

partnership with an IPO, shall establish a Cooperation

Committee consisting of representatives from the

Programme Operator and representatives from the

Donor Programme Partner(s) and/or the IPO(s), as

applicable. The Cooperation Committee shall be

established as soon as possible after the designation of

the Programme Operator and shall provide advice on

the preparation and implementation of the programme.

The Cooperation Committees shall be chaired by a

representative of the Programme Operator.

Representatives of the FMC and the National Focal

Point shall be invited to participate as observers.

1. The Programme Operator of a donor partnership

programme or a programme implemented in

partnership with an International Partner Organisation,

shall establish a Cooperation Committee consisting of

representatives from the Programme Operator and

representatives from the Donor Programme Partner(s),

and/or the International Partner Organisation(s) and/or

any other programme partner, as applicable. The

Cooperation Committee shall be established as soon as

possible after the designation of the Programme

Operator and shall provide advice on the preparation

and implementation of the programme. The

Cooperation Committees shall be chaired by a

representative of the Programme Operator.

Representatives of the FMC,Donor States, and the

National Focal Point and the FMO shall be invited to

participate as observers.

The reference to the FMC has been replaced by a reference to the Donor

States, to include the DS embassies.

The deleted part in this paragraph is reflected in paragraph 3.

It is also proposed to add “and/or any other programme partner” in the

provision on the composition of the Cooperation Committee, to reflect that

in cases where the NFP acts as the PO for the programme, the line

ministry/entity responsible for the relevant policy area shall also be included

in the CC.

2. All documents presented to and produced by the

Cooperation Committee shall be in English. The

Committee meetings shall be conducted in English.

2. All documents presented to and produced by the

Cooperation Committee shall be in English. The

Committee meetings shall be conducted in English.

3. The tasks of the Cooperation Committee include:

(a) advising on stakeholder consultations;

(b) advising on the preparation of the concept note;

(c) advising on bilateral activities and possible project

partners in the Donor States, as appropriate;

3. The tasks of the Cooperation Committee include:

(b) advising on stakeholder consultations;

(c) advising on the preparation of the concept note;

(a) advising on selection criteria and the texts for

call(s) for proposals;

Points (a) and (b) are related to the programme development and are,

therefore, moved to Article 4.2.3. It is proposed that the CC should not be

involved in the programme development stage.

The list of CC tasks has been split in two sections. While the first list of

tasks requires the participation of both DPPs and IPOs, where applicable,

the second list of tasks is only applicable to DPPs (tasks which they perform

in the scope of the CC). Hereby, IPOs are excluded from participation in the

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 34

Current text New text (with track changes) Comments

(d) advising on selection criteria and the texts for

call(s) for proposals;

(e) reviewing progress made towards achieving the

outputs, outcome(s) and objective of the

programme;

(f) reviewing progress made towards strengthening

bilateral relations, as appropriate;

(g) examining the results of the implementation of the

programme;

(h) reviewing the draft annual programme reports;

(i) advising the Programme Operator of any

modification of the programme affecting the

achievement of the programme’s expected

outcome(s) and objective; and

(j) advising on the use of the funds for bilateral

relations, where relevant.

advising on bilateral activities and possible

project partners in the Donor States, as

appropriate;

(b) reviewing progress made towards achieving

the outputs, outcome(s) and objective of the

programme;

reviewing progress made towards

strengthening bilateral relations, as

appropriate;

(c) examining the results of the implementation

of the programme;

(d) reviewing the draft annual programme

reportsdraft Final Programme Report; and

(e) advising the Programme Operator onf any

modification of the Pprogramme affecting

the achievement of the Pprogramme’s

expected outcome(s) and objective.; and

Further tasks for Donor Programme Partners include:

(f) advising on bilateral activities and possible

project partners in the Donor States, as

appropriate;

(g) reviewing progress made towards

strengthening bilateral relations, as

appropriate; and

(h) deciding in consensus with the Programme

Operator advising on the use of the funds for

bilateral relations in the Programme, where

relevant.

decision-making on the use of the bilateral funds or from advising on donor

project partners in the programmes where they are involved.

New point (h) Reflects the stronger role for the DPPs in relation to the use

of bilateral funds in the programme.

4. The Cooperation Committee shall keep minutes of

its meetings in English.

4. The Cooperation Committee shall keep minutes of

its meetings in English.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 35

Current text New text (with track changes) Comments

Article 4.5

Donor partnership projects

Article 4.4

Donor partnership projects

Projects may be prepared and implemented in

cooperation with one or more legal entity in the Donor

States. With reference to the objectives of the EEA

Financial Mechanism 2014-2021 related to bilateral

relations, the Programme Operator shall encourage

and facilitate the establishment of such partnerships.

Projects may be prepared and implemented in

cooperation with one or more legal entity entities in

the Donor States. With reference to the objectives of

the EEA Financial Mechanism 2014-20212021-2028

related to bilateral relations, the Programme Operator

shall encourage and facilitate the establishment of

such partnerships.

Article 4.5

Bilateral initiatives

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 36

Current text New text (with track changes) Comments

1. Bilateral initiatives are activities falling within the

following categories, which are implemented in

partnership between entities from Donor States and

Beneficiary States and funded by the bilateral funds,

either at programme level or at national level:

a) activities aiming at strengthening bilateral relations

between the Donor States and the Beneficiary States;

(a) the search for partners for donor partnership

projects prior to or during the preparation of

a project application, the development of

such partnerships and the preparation of an

application for a donor partnership project;

(b) networking, exchange, sharing and transfer

of knowledge, technology, experience and

best practice between entities in Beneficiary

States and entities in the Donor States and/or

international organisations, provided at least

one entity within the Donor States is involved

in the activity;

(c) activities aiming at strengthening

cooperation and exchanging experiences and

best practices between the Programme

Operators and similar entities within the

Beneficiary States and Donor States, as well

as international organisations, provided at

least one entity within the Donor States is

involved in the activity;.and

(a)(d) any other activity aiming at

strengthening bilateral relations between the

Donor States and the Beneficiary States.

This Article is added to reflect the third form of collaboration in

partnership, i.e., bilateral initiatives and to replace the current Article

4.1.3.

The reference to the type of activities that can be funded by the funds for

bilateral relations is moved from Article 8.8 on the eligibility of

expenditures under the bilateral funds to Article 4.5, which defines

bilateral initiatives. The purpose is to have a broad definition, in line with

the approach that the “bilateral funds” are a flexible tool that covers a wide

spectrum of activities within the Grants setup.

Activities aiming at strengthening bilateral relations can be considered as a

generic term. Therefore, the categories of activities mentioned in points

(b), (c) and (d) can be seen as specific types of activities aiming at

strengthening bilateral relations. Therefore, it seems more appropriate to

put the catch-all category at the end of the list. In 1.(b) is added: “provided at least one entity within the Donor States is

involved in the activity” to match with point 1.(c).

2. Beneficiary State entities and Donor State entities

are eligible as promoters of bilateral initiatives.

This provision has been added for clarification.

Article 4.6

Fund for bilateral relations

Article 4.6 Funds for bilateral relations

Funds is put in plural, as with the proposed setup, the bilateral funds are no

longer in one single fund.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 37

Current text New text (with track changes) Comments

1. The Beneficiary State shall set aside a minimum of

2% of the Beneficiary State’s total allocation for a

fund to strengthen bilateral relations between the

Donor States and the Beneficiary States. The amount

shall be fixed in the MoU. The eligibility of

expenditures to be covered by the fund under this

paragraph is detailed in Article 8.8.

1. The Beneficiary State shall set aside between 2 and

5% of the Beneficiary State’s total allocation for funds

to strengthen bilateral relations between the Donor

States and the Beneficiary States. The amount shall be

agreedfixed in the MoU and shall be split between a

part for use at national level and a part for use at

programme level. The part for use at programme level

shall be divided between the Programmes in each

Beneficiary State during the negotiations on the

Memorandum of Understanding and identified in the

Programme Agreement.

The eligibility of expenditures to be covered by the

fund under this paragraph is detailed in Article 8.8.

The Regulation shall provide that the size of the bilateral funds shall be

within a range of 2-5% of the BS total allocation. The exact share/amount

shall be defined in the MoU.

It is proposed to have a clear split between bilateral funds at national level

and bilateral funds at programme level, similar to the FM 09-14 setup.

For bilateral funds at programme level, the BF shall be part of the

programme budget and shall be linked to a separate bilateral outcome in the

results framework, similar to what is currently the case for ACF

programmes under the FM 14-21.

This setup provides, inter alia, the following advantages:

- A different eligibility period between BF at national/ programme

level can be defined.

- Clear reporting lines and obligations (PO in the Final Programme

Report on BF at programme level and the NFP in the Country

Report on BF at national level).

- Clear ownership over each part (national level: NFP/JCBF and

programme level: PO/PO+DPPs)

Further implications:

- BFA – Work Plan will be limited to cover the BF at national level

only.

- NFP/JCBF have no longer the responsibility for BF at programme

level.

- No longer Expressions of Interest (current art. 4.7) – the possibility

to make BF at national level available for programmes would mix-

up the reporting and ownership. Shifts between national and

programme level BF are, however, still possible but only through

MoU modification. Moreover, nothing prevents stakeholders in

programmes from applying for BF at national level.

- The BF allocation for each programme would be informally agreed

at the MoU stage but formally set in the PA.

- This provides the advantage that reallocations of BF between the

programmes can be done by way of PA modification (and without

MoU modification, which always requires Donor approval))

- Bilateral ambitions can be defined in the Concept Note, as it is

known how much BF are available to each programme.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 38

Current text New text (with track changes) Comments

2. The rules on eligibility of expenditures set out in

Chapter 8 apply mutatis mutandis to the funds for

bilateral relations.

The content of Article 8.8.1 has been transferred to Chapter 4 (Article 4.6).

The rules in Chapter 8 already apply to the bilateral funds to such an extent

that referring to the chapter as a whole is appropriate.

3. There shall be no co-financing requirements for the

use of the funds for bilateral relations.

This will, however, affect the calculation of the national co-financing at

programme level (if co-financing rate is 15%, the percentage should be

calculated on the total grant amount minus the part for BF).

2. The National Focal Point shall be responsible for the

use of the funds mentioned in paragraph 1 and report

on the use of them in the Strategic Report. The first

date of eligibility for support under this article shall be

the date of the last signature of the MoU with the

respective Beneficiary State. If support under this

Article is received under both the EEA and the

Norwegian Financial Mechanisms, the first date of

eligibility shall be the date of the last signature of

whichever MoU is signed first. The final date of

eligibility for support under this Article shall be 30

April 2025.

2. The National Focal Point shall be responsible for the

use of the funds mentioned in paragraph 1 and report

on the use of them in the Strategic Report. The first

date of eligibility for support under this article shall be

the date of the last signature of the MoU with the

respective Beneficiary State. If support under this

Article is received under both the EEA and the

Norwegian Financial Mechanisms, the first date of

eligibility shall be the date of the last signature of

whichever MoU is signed first. The final date of

eligibility for support under this Article shall be 30

April 2025.

This article is deleted and the eligibility period is addressed further down in

the text as the proposal is to have a different final date of eligibility between

BF at national level and BF at programme level.

3. Payments of the funds for bilateral relations shall

take the form of an advance payment, interim

payments and payment of the final balance and shall

be made in accordance with Articles 9.2, 9.3 and 9.4.

The advance payment shall be made upon signature of

the Bilateral Fund Agreement. In exceptional cases,

extraordinary advance payments may be made prior to

the signing of the Bilateral Fund Agreement.

43. Payments of the funds for bilateral relations at

national level shall take the form of an advance

payment, interim payments and payment of the final

balance and shall be made in accordance with Articles

9.2, 9.3 and 9.4. The advance payment shall be made

upon signature of the Bilateral Fund Agreement. In

exceptional cases, extraordinary advance payments

may be made prior to the signing of the Bilateral Fund

Agreement.

This paragraph provides the possibility for advance payments (upon BFA

signature) and extraordinary advance payments (before BFA signature) for

BF at national level.

4. For the purpose of covering the costs of the

activities referred to in Article 8.8 during the

development of programmes, the FMC can make an

advance payment directly to the Programme Operators

not exceeding € 50,000. Such payment shall be made

in agreement with the National Focal Point, following

the designation of the Programme Operator.

54. Payments of the funds for bilateral relations at

programme level shall take the form of an advance

payment, interim payments and payment of the final

balance and shall be made in accordance with Articles

9.2, 9.3 and 9.4. For the purpose of covering the costs

of the activities referred to in Article 4.58.8 during the

development of programmes, the FMC can make an

advance payment directly to the Programme Operators

This paragraph provides the possibility for advance payments for BF at

programme level, specifically aimed at covering expenses during the

programme development stage.

The combination of paragraphs 3 and 4 should assure the early availability

of bilateral funds, at both levels, in the new FM.

There seems to be no need to have a maximum amount for advance

payments for BF at programme level in the programme development stage.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 39

Current text New text (with track changes) Comments

not exceeding € 50,000. Such payment shall be made

in agreement with the National Focal Point, following

the designation of the Programme Operator.

5. In exceptional cases, the FMC may in agreement

with the National Focal Point decide to make

payments from the fund for bilateral relations directly

to a final recipient. The National Focal Point shall be

promptly informed when such payments have been

made. Payments by the FMC in accordance with this

paragraph do not affect the responsibilities of the

Beneficiary State for the management and reporting on

the funds for bilateral relations.

65. In exceptional cases, the FMC may in agreement

with the National Focal Point decide to make

payments from the funds for bilateral relations directly

to a final recipient. The National Focal Point shall be

promptly informed when such payments have been

made. Payments by the FMC in accordance with this

paragraph do not affect the responsibilities of the

Beneficiary State for the management and reporting on

the funds for bilateral relations.

Article 4.7

Funds for bilateral relations at national level

1. The National Focal Point shall be responsible for the

management and use of the funds for bilateral relations

at national level, in accordance with Article 4.9, and

report on their use in the Annual and Final Country

Report.

2 The first date of eligibility for support under this

Aarticle shall be the date of the last signature of the

Memorandum of Understanding with the respective

Beneficiary State. If support under this Article is

received under both the EEA and the Norwegian

Financial Mechanisms, the first date of eligibility shall

be the date of the last signature of whichever

Memorandum of Understanding is signed first. The

final date of eligibility for support under this Article

shall be 30 April 2032.

Article 4.8

Bilateral Fund Agreement

1. As soon as possible after the signature of the

Memorandum of Understanding, the FMC and the

National Focal Point shall conclude an agreement on

It is considered appropriate to introduce a specific article on the Bilateral

Fund Agreement and to describe what that agreement covers.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 40

Current text New text (with track changes) Comments

the funds for bilateral relations at national level: the

Bilateral Fund Agreement.

As a result of the proposed split of the BF between national and programme

level, the BFA will only be about the BF at national level.

2. For Beneficiary States benefitting from both the

EEA and the Norwegian Financial Mechanisms, the

Bilateral Fund Agreement shall cover both

mechanisms. The Bilateral Fund Agreement template

is provided in Annex 3.

3. The Bilateral Fund Agreement shall define, inter

alia:

(a) the size and objective of the funds;

(b) the role, functioning and composition of the

Joint Committee for the Bilateral Fund; and

(c) the procedures and requirements for the

Work Plan.

Article 4.9

Joint Committee for the Bilateral Fund

1. The National Focal Point shall establish a Joint

Committee for the Bilateral Funds as soon as possible

after the signature of the Memorandum of

Understanding. Its tasks shall, inter alia, include:

(a) discussing matters of bilateral interests

beyond the programmes, identifying bilateral

initiatives at national level and reviewing the

overall progress towards reaching the

objective of strengthened bilateral relations;

(b) adopting the Work Plan for the funds for

bilateral relations at national level; and

(c) taking decisions by consensus on the use of

the funds for bilateral relations at national

The current setup makes a clear distinction between Bilateral funds at

national level and Bilateral funds at programme level. Hence, the possibility

for allocating additional funding from BF at national level to programmes

is no longer considered necessary/desirable.

At the same time, it is considered desirable to expressly reflect in the

Regulation that the JCBF is responsible for taking decisions on the use of

the BF at national level. Hence, it is proposed to have this in point (c).

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 41

Current text New text (with track changes) Comments

level.identifying and allocating bilateral

funds to programmes of bilateral interest.

2. The Work Plan for the funds for bilateral relations

at national level shall be discussed at the annual

meeting. Any comments to the Work Plan made at the

annual meeting shall be taken into account by the Joint

Committee for the Bilateral Funds.

3. The Joint Committee for the Bilateral Funds shall

be chaired by the National Focal Point and composed

of representatives from the Donor States and from the

Beneficiary States, including the respective ministry

of foreign affairs.

4. The Joint Committee for the Bilateral Funds shall

meet at least once a year, prior to the annual meeting.

5. The composition, role and functioning of the Joint

Committee for Bilateral Funds shall be further defined

in the Bilateral Fund Agreement between the FMC and

the National Focal Point. The Bilateral Fund

Agreement template is provided in Annex 4.

See specific new article on the BFA above.

6. The National Focal Point shall, within two months

of the last signature of the MoU, submit to the FMC a

proposal on the composition, role and functioning of

the Joint Committee for Bilateral Funds. If the

Beneficiary State receives support under both the EEA

and the Norwegian Financial Mechanisms, the two

months shall count from the date of the last signature

of whichever of the two MoUs is signed last.

It is considered a simplification to remove this provision. The objective of

the provision is covered by the first paragraph of 4.8 that sets out the

obligation to conclude the BFA as soon as possible after the MoU.

Article 4.7

Use of funds for bilateral relations at programme

level

Article 4.7 Use of funds for bilateral relations at programme

level

The National Focal Point shall as appropriate ensure

the availability and timely disbursement of funds for

The National Focal Point shall as appropriate ensure

the availability and timely disbursement of funds for

The possibility for Expressions of Interest is removed to avoid mixing-up

the ownership and the reporting of the two levels of BF.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 42

Current text New text (with track changes) Comments

bilateral relations upon request from the Programme

Operators.

bilateral relations upon request from the Programme

Operators.

Article 4.10 Funds for bilateral relations at programme level

1. The Programme Operators shall be responsible for

the management and use of the funds for bilateral

relations at programme level in their programmes. For

Donor partnership programmes, decisions on the use

of the funds for bilateral relations in the Programme

shall be taken by consensus between the Programme

Operator and the Donor Programme Partner(s).

POs + DPPs are responsible for the decision-making on the use of the

bilateral funds in programmes. IPOs have been excluded from that. The text

has been amended to reflect that.

2. The first date of eligibility for support under this

Article shall be the date of entry into force of the

Memorandum of Understanding with the respective

Beneficiary State. If support under this Article is

received under both the EEA and the Norwegian

Financial Mechanisms, the first date of eligibility shall

be the date of entry into force of the whichever MoU

is signed first. The final date of eligibility for support

under this Article shall be 31 December 2031.

The final date of eligibility for BF at programme level (31 December 2031)

shall be longer than the final date of eligibility for projects (30 April 2031),

but shorter than the final date of eligibility for bilateral funds at national

level (30 April 2032)

3. The Programme Operators shall report on the use of

the bilateral funds in their programmes in the annual

programme report, the Final Programme Report and

the Interim Financial Reports.

4. The Programme Operator, with the consent of the

National Focal Point and the FMC, may entrust the

management of a part of the bilateral funds at

programme level to the Donor Programme Partner(s).

In such cases, the Donor Programme Partner(s) and the

Programme Operator shall conclude an agreement

including all necessary arrangements to allow the

Programme Operator to fulfil its reporting obligations

as described in paragraph 3.

With this provision, the possibility is created that the DPPs can manage part

of the bilateral funds in programmes themselves.

Chapter 4 Bilateral relations

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 43

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 44

Current text New text (with track changes) Comments

Chapter 5

Management and control systems

Chapter 5

Management and control systems

Article 5.1

General principles of the management and control

systems

Article 5.1

General principles of the management and control

systems

1. The Beneficiary State shall be responsible for the

management and control of programmes. The

management and control systems established by the

Beneficiary State for the EEA Financial Mechanism

2014-2021 shall ensure the respect of the principles of

accountability, economy, efficiency and effectiveness.

1. The Beneficiary State shall be responsible for the

management and control of programmes. The

management and control systems established by the

Beneficiary State for the EEA Financial Mechanism

2014-20212021-2028 shall ensure the respect of the

principles of accountability, economy, efficiency and

effectiveness and the key requirements listed in

paragraph 2.

2. The management and control systems shall provide

for:

(a) the definition of the functions of the entities

concerned in management and control and the

allocation of functions within each entity;

(b) compliance with the principle of separation of

functions between and within such entities;

(c) procedures for ensuring the correctness and

regularity of expenditure;

(d) reliable accounting, monitoring and financial

reporting systems in computerised form;

(e) a system of reporting and monitoring where the

responsible entity entrusts the execution of tasks

to another entity;

2. The key requirements of management and control

systems shall provide forare:

(a) the definition of the functions of the entities

concerned and the allocation of functions within

each entity;

(b) appropriate separation of functions between and

within such entities and, where relevant, written

arrangements for reporting, supervising and

monitoring of delegated tasks;

(c) appropriate criteria and procedures for the

selection of projects and initiatives, in

compliance with this Regulation;

(d) appropriate information to beneficiaries on

applicable conditions for support for the selected

projects and initiatives;

(e) appropriate verifications and procedures for

confirming that the incurred expenditure is legal

The contents for the management and control systems as currently described

in the Regulation have been replaced by the list of ‘key requirements for

management and control systems’ provided for in the Common Provisions

Regulation (CPR).

The reason for this is to harmonise terminology and therefore approach of

national authorities, thus creating less complexity when dealing with the

grants.

Having said that, the differences between the grants and the ESIF structures

necessitates a relatively substantial rephrasing of the CPR text.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 45

Current text New text (with track changes) Comments

(f) arrangements for auditing the functioning of the

systems;

(g) systems and procedures to ensure an adequate

audit trail; and

(h) reporting and monitoring procedures for

irregularities and for the recovery of amounts

unduly paid.

and regular, including and iInterim fFinancial

rReports and the final balance;

(f) audit work carried out in accordance with

internationally accepted audit standards;

(g) appropriate audits of the management and

control systems;

(h) appropriate audits of expenditure declared;

(i) appropriate procedures for providing a reliable

audit opinion and for preparing the aAnnual

aAudit rReport; and

(j) reporting and monitoring procedures for

irregularities and for the recovery of amounts

unduly paid.

(a) the definition of the functions of the entities

concerned in management and control and the

allocation of functions within each entity;

(b) compliance with the principle of separation of

functions between and within such entities;

(c) procedures for ensuring the correctness and

regularity of expenditure;

(d) reliable accounting, monitoring and financial

reporting systems in computerised form;

(e) a system of reporting and monitoring where the

responsible entity entrusts the execution of tasks

to another entity;

(f) arrangements for auditing the functioning of the

systems;

(g) systems and procedures to ensure an adequate

audit trail; and

(h)(k) reporting and monitoring procedures for

irregularities and for the recovery of amounts

unduly paid.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 46

Current text New text (with track changes) Comments

3. The Beneficiary State shall comply with the

requirements defined by the FMC for submitting

information electronically.

3. The Beneficiary State shall comply with the

requirements defined by the FMC for submitting and

transferring information electronically.

The addition of ‘transferring’ should increase interoperability between

Beneficiary States IT systems and Grace.

Article 5.2

Designation of national entities

Article 5.2

Designation of national entities

1. The Beneficiary State shall in the MoU designate

the following entities for the implementation of the

EEA Financial Mechanism 2014-2021:

(a) a National Focal Point;

(b) a Certifying Authority;

(c) an Audit Authority; and

(d) an Irregularities Authority.

1. The Beneficiary State shall in the MoU designate

shall identify the following entities for the

implementation of the EEA Financial Mechanism

2014-20212021-2028:

(a) a National Focal Point;

(b) a Certifying Authority; and

(c) an Audit Authority.; and

an Irregularities Authority.

The paragraph is amended to clarify that these entities are mutually agreed

in the MoU.

Reference to the Irregularities Authority is deleted as there will no longer

be a separate entity for this purpose. However, one national entity keeps the

responsibility for reporting of irregularities (see Article 12.3.1).

2. The Donor States and the Beneficiary State may in

the MoU decide that the National Focal Point, in

addition to its tasks referred to in Article 5.3, takes on

the tasks of the Certifying Authority under Article 5.4.

Such arrangements shall nevertheless ensure the

adequate functional separation of tasks related to

payments from other tasks within the National Focal

Point. If such arrangements are agreed upon, the

National Focal Point shall not be designated as

Irregularities Authority and paragraph 4 shall not

apply.

2. The Donor States and the Beneficiary State may in

the MoU decide that the National Focal Point, in

addition to its tasks referred to in Article 5.3, takes on

the tasks of the Certifying Authority under Article 5.4.

Such arrangements shall nevertheless ensure the

adequate functional separation of tasks related to

payments from other tasks within the National Focal

Point. If such arrangements are agreed upon, the

National Focal Point shall not be designated as

Irregularities Authority and paragraph 4 shall not

apply.

Following deletion of Irregularities Authorities as a separate entity, there is

no need to ensure separation of IA from combined NFP and CA function.

3. Without prejudice to Articles 2.5 and 6.13, the

National Focal Point shall, in consultation with the

FMC, designate a Programme Operator for each

programme. The Programme Operator shall have

strong ties to the sector within which the programme

belongs. For programmes under the programme area

‘Civil Society’, the Programme Operator shall be

3. Without prejudice to Articles 2.5 and 6.13, a

programme Operator shall be designated in the MoU

for each programmethe National Focal Point shall, in

consultation with the FMC, designate a Programme

Operator for each programme. The Programme

Operator shall have strong ties to the sector within

which the programme belongs. For programmes under

This is to align with the approach in Article 2.5 foreseeing that the

Programme Operator is always designated in the MoU and, thus, decided

upon by all parties in the MoU.

Reference to the Civil Society Area is also deleted.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 47

Current text New text (with track changes) Comments

autonomous of national, regional and local

governmental institutions. Should such an

autonomous Programme Operator be unattainable, the

FMC may in exceptional cases waive this requirement

but only to the extent necessary.

the programme area ‘Civil Society’, the Programme

Operator shall be autonomous of national, regional

and local governmental institutions. Should such an

autonomous Programme Operator be unattainable, the

FMC may in exceptional cases waive this requirement

but only to the extent necessary.

4. In exceptional cases, the FMC may approve that the

National Focal Point takes the role of a Programme

Operator for one or more programmes.

4. In exceptional cases, the FMC may approve that the

National Focal Point takes the role of a Programme

Operator for one or more programmes.

5. If the National Focal Point takes the role of a

Programme Operator, the National Focal Point shall

not be designated as Irregularities Authority.

5. If the National Focal Point takes the role of a

Programme Operator, the National Focal Point shall

not take over the role of the entity referred to in Article

12.3.1be designated as Irregularities Authority.

This is amended to reflect the deletion of the Irregularities Authority.

Article 5.3

National Focal Point

Article 5.3

National Focal Point

1. The National Focal Point shall have the overall

responsibility for ensuring that programmes contribute

to the objectives of the EEA Financial Mechanism

2014-2021 as well as for ensuring that the

implementation of the EEA Financial Mechanism

2014-2021 in the Beneficiary State is in line with

Article 1.3. It shall serve as a contact point and be

responsible and accountable for the implementation of

the MoU.

1. The National Focal Point shall have the overall

responsibility for ensuring that programmes contribute

to the objectives of the EEA Financial Mechanism

2014-20212021-2028 as well as for ensuring that the

implementation of the EEA Financial Mechanism

2014-20212021-2028 in the Beneficiary State is in line

with Article 1.3. It shall serve as a contact point and

be responsible and accountable for the implementation

of the MoU.

2. The National Focal Point represents the Beneficiary

State in its relations with the FMC regarding the

implementation of the EEA Financial Mechanism

2014-2021 in the Beneficiary State.

2. The National Focal Point represents the Beneficiary

State in its relations with the FMC regarding the

implementation of the EEA Financial Mechanism

2014-20212021-2028 in the Beneficiary State.

3. The National Focal Point shall ensure that the

programmes are implemented in accordance with the

legal framework of the EEA Financial Mechanism

3. The National Focal Point shall ensure that the

programmes are implemented in accordance with the

legal framework of the EEA Financial Mechanism

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 48

Current text New text (with track changes) Comments

2014-2021 and monitor the progress and quality of

their implementation. To this end, the National Focal

Point shall continuously and in a structured manner

assess the risks to the implementation of the EEA

Financial Mechanism 2014-2021 and may take the

action it deems necessary and compatible with this

Regulation, including to verify the quality and content

of any documents provided to the FMC through the

National Focal Point and request the necessary

modification to such documents. The National Focal

Point shall take any necessary steps to ensure that

Programme Operators are fully aware of their

responsibilities under the legal framework of the EEA

Financial Mechanism 2014-2021.

2014-20212021-2028 and monitor the progress and

quality of their implementation. To this end, the

National Focal Point shall continuously and in a

structured manner assess the risks to the

implementation of the EEA Financial Mechanism

2014-20212021-2028 and may take the action it deems

necessary and compatible with this Regulation,

including to verify the quality and content of any

documents provided to the FMC through the National

Focal Point and request the necessary modification to

such documents. The National Focal Point shall take

any necessary steps to ensure that Programme

Operators are fully aware of their responsibilities

under the legal framework of the EEA Financial

Mechanism 2014-20212021-2028.

4. The National Focal Point shall carry out regular

monitoring of the programmes with regards to their

progress towards the programme outputs, outcome(s)

and objective(s) according to agreed indicators and

financial requirements specified for the programme.

Results of the monitoring shall be reported in the

Strategic Report.

4. The National Focal Point shall carry out regular

monitoring of the programmes with regards to their

progress towards the programme outputs, outcome(s)

and objective(s) according to the agreed results

framework indicators and financial requirements

specified for the programme. Results of the

monitoring shall be reported in the Strategic Country

Report.

This is to clarify the language.

5. The role of the National Focal Point may be further

specified in the MoU.

5. The role of the National Focal Point may be further

specified in the MoU.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 49

Current text New text (with track changes) Comments

Article 5.4

Certifying Authority

Article 5.4

Certifying Authority

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 50

1. The Certifying Authority shall be responsible in

particular for:

(a) submitting to the FMC certified interim financial

reports and final programme reports referred to in

Articles 9.3 and 6.12, respectively, certifying that:

(i) the summary of eligible expenditure

submitted by the Programme Operator is in full

conformity with the supporting documents;

(ii) the supporting documents have been

examined and found to be authentic, correct and

accurate;

(iii) the summary of eligible expenditure is based

on verifiable accounting which is in compliance with

generally accepted accounting principles and

methods;

(iv) the summary of eligible expenditure falls

within eligible expenditure under this Regulation;

(v) the summary of expenditure is incurred as

part of the implementation of the Programme in

accordance with the programme agreement;

(vi) sufficient audit trail exists; and

(vii) co-financing committed to the programme has

been paid.

(b) submitting to the FMC a forecast of likely

payment applications as referred to in Article 9.5;

(c) declaring to the FMC any interest earned as

referred to in Article 9.7;

(d) taking account for certification purposes of the

results of all audits carried out by or under the

responsibility of the Audit Authority;

1. The Certifying Authority shall be responsible in

particular for:

(a) sSubmitting to the FMC certified Iinterim

Ffinancial Rreports and fFinal pProgramme

rReports referred to in Articles 9.3 and 6.812,

respectively, certifying that:

(i) the summary of eligible expenditure

submitted by the Programme Operator is in

full conformity with the supporting

documents;

(ii) the supporting documents have been

examined and found to be authentic,

correct and accurate;

(iii) the summary of eligible expenditure is

based on verifiable accounting which is in

compliance with generally accepted

accounting principles and methods;

(iv) the summary of eligible expenditure falls

within eligible expenditure under this

Regulation;

(v) the summary of expenditure is incurred as

part of the implementation of the

Pprogramme in accordance with the

pProgramme aAgreement;

(vi) sufficient audit trail for the eligible

expenditures of the programme exists; and

(vii) co-financing committed to the programme

has been paid.

(b) submitting to the FMC, as part of the Iinterim

Ffinancial rReport, submitting to the FMC a

forecast of likely payment applications as referred

to in Article 9.35;

(b)(c) submitting to the FMC requests for

Ttechnical Aassistance disbursements in

To clarify that this does not include audit trail of projects.

A separate task for technical assistance disbursements is added as this will

not follow the full IFR content described above.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 51

(e) maintaining accounting records in electronic form

of expenditure declared to the FMC;

(f) ensuring that funds are made available to the

Programme Operators according to paragraph 2 of

Article 9.1; and

(g) ensuring that amounts recovered and amounts

withdrawn following cancellation of all or part of

the financial contribution for a programme or

project are reimbursed to the FMC prior to the

closure of the programme.

accordance with the payment schedule described

in Chapter 9;.

(c)(d) declaring to the FMC any interest earned or

paid as referred to in Article 9.67;

(d)(e) taking account for certification purposes of

the results of all audits carried out by or under the

responsibility of the Audit Authority;

(e)(f) maintaining accounting records in electronic

form of expenditure declared to the FMC;

(f)(g) ensuring that funds are made available to the

Programme Operators according to paragraph 2 of

Article 9.1.2; and

(g)(h) ensuring that amounts recovered and

amounts withdrawn following cancellation of all

or part of the financial contribution for a

programme or project are reimbursed to the FMC

prior to the closure of the programme.

This is to reflect the approach taken in Article 9.6 that negative interest is

considered an eligible cost to be covered by and within the total allocation

of the Technical Assistance and the programme management costs.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 52

Current text New text (with track changes) Comments

2. Subject to contrary provision of the national law of

the Beneficiary State, the Certifying Authority shall

ensure the establishment and maintenance of a

separate interest-bearing bank account dedicated to the

EEA Financial Mechanism 2014-2021.

2. Subject to contrary provision of the national law of

the Beneficiary State, the Certifying Authority shall

ensure the establishment and maintenance of a

separate interest-bearing bank account dedicated to the

EEA Financial Mechanism 2014-20212021-2028.

Article 5.5

Audit Authority

Article 5.5

Audit Authority

1. The Audit Authority shall be responsible in

particular for:

(a) ensuring that audits are carried out to verify

the effective functioning of the management and

control system at the level of the Beneficiary State;

(b) ensuring that at least one audit is carried out

of each programme to verify the effective functioning

of its management and control system;

(c) ensuring that audits are carried out on

projects on the basis of an appropriate sample to verify

expenditure declared;

(d) preparing within nine months of the approval

of the last programme an audit strategy. The audit

strategy may cover more than one programme. The

audit strategy shall set out the audit methodology, the

sampling method for audits on projects and the

indicative planning of audits to ensure that audits are

spread evenly throughout the programming period.

The audit strategy shall be updated annually as

appropriate. The Audit Authority shall submit the

audit strategy to the FMC in English upon request

within one month. The FMC may provide comments;

(e) by 15 February each year from 2019 to 2025:

(i) submitting to the FMC an annual audit report

setting out the findings of the audits carried out during

1. The Audit Authority shall be responsible in

particular for:

(a) (a) preparing within nine months of the

approval of the last programme an risk-based

audit strategy covering . The audit strategy

may cover the entire allocation to the

Beneficiary State.more than one programme.

The audit strategy shall set out the audit

methodology, the sampling method for audits

on projects and the indicative planning of

audits to ensure that audits are spread evenly

throughout the programming period. The

audit strategy shall be updated annually as

appropriate. The Audit Authority shall

submit the audit strategy to the FMC in

English upon request within one month. The

FMC may provide comments;

(a)(b) ensuring that audits are carried out

to verify the effective functioning of the

management and control system at the level

of the Beneficiary State;

(b) (c) carrying out auditsthat at least one audit

to verify the effective functioning of

management and control systems at the level

of the programmes. Audits shall be carried

out on the basis of an appropriate sample,

taking into account the principles of single

Paragraph (d) has been moved to (a) and all further points have been re-

listed accordingly.

Systems audits will no longer need to be carried out on all programmes.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 53

Current text New text (with track changes) Comments

the previous 12 month-period ending on 31 December

of the year concerned in accordance with the audit

strategy of the programme and reporting any

shortcomings found in the systems for the

management and control. The first report to be

submitted by 15 February 2019 shall cover the period

up to 31 December 2018. The information concerning

the audits carried out after 1 January 2025 shall be

included in the final audit report supporting the closure

declaration referred to in point (f);

(ii) issuing an opinion to the FMC, on the basis

of the controls and audits that have been carried out

under its responsibility, as to whether the management

and control system functions effectively, so as to

provide a reasonable assurance that statements of

actual expenditure incurred presented to the FMC are

correct and as a consequence reasonable assurance that

the underlying transactions are legal and regular;

(f) submitting to the FMC at the latest by 31

December 2025 a closure declaration assessing

the validity of the application for payment of the

final balance claimed in the final programme

report.

audit and proportionality and based on a risk

assessment is carried out of each programme

to verify the effective functioning of its

management and control system;

(d) ensuring that audits are carried out on projects on

the basis of an appropriate sample to verify legality

and regularity of expenditure declared and the

fulfilment of conditions for simplified cost options;

(e) by 15 February each year from 2019 2026 to

20252032:

(i) submitting to the FMC an aAnnual aAudit

rReport setting out the findings of the audits carried

out for a twelve month reference period ending on 30

June of the previous calendar year.during the previous

12 month-period ending on 31 December of the year

concerned The aAnnual aAudit rReport shall be in

accordance with the audit strategy of the programme

and reporting any shortcomings found in the systems

for the management and control systems. The first

report to be submitted by 15 February 2019 2026 shall

cover the reference period up to 301 December June

20182025. The information concerning the audits

carried out after for the reference period from 1 July

202431 1 January 2025 shall be included in the fFinal

aAudit rReport supporting the closure declaration

referred to in point (f);

(ii) issuing an opinion to the FMC, on the basis

of the controls and audits that have been carried out

under its responsibility, as to whether the management

and control system functions effectively, so as to and

can provide a reasonable level of assurance that

statements of actual expenditure incurred presented to

the FMC are correct, and as a consequence reasonable

assurance thatcorrect, that the underlying transactions

are legal and regular and that the conditions for

This is to reflect also the tasks needed in relation to simplified cost options.

The text has been modified to replace the contents of the annual audit report

with a reference period covering actual expenditure, rather than a reporting

period covering audit work.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 54

Current text New text (with track changes) Comments

reimbursement of simplified cost options are met. The

opinion shall be based on a template to be provided by

the FMC;

(f) submitting to the FMC at the latest by 31

December 20252032 a closure declaration assessing

the validity of the application for payment of the final

balance claimed in the fFinal pProgramme rReport.

The closure declaration shall be based on a template to

be provided by the FMC.

2. Where the Audit Authority chooses not to carry out

the audits according to paragraphs 1(a) through (c), it

shall appoint an independent and certified auditor to

perform these tasks.

2. Where the Audit Authority chooses not to carry out

the audits according to points paragraphs 1(ba)

through (cd) of paragraph 1, it shall appoint an

independent and certified auditor to perform these

tasks.

3. The Audit Authority shall ensure that the audit

complies with internationally accepted audit

standards.

3. The Audit Authority shall ensure that the audit

complies with internationally accepted audit

standards.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 55

Current text New text (with track changes) Comments

4. For the purposes of point (c) of paragraph 1,

declared expenditure shall be audited based on a

representative sample and, as a general rule, on

statistical sampling methods.

In such cases, the size of the sample shall be sufficient

to enable the Audit Authority to draw up a valid audit

opinion in accordance with point (e) of paragraph 1.

A non-statistical sampling method may be used on the

professional judgment of the Audit Authority, in duly

justified cases, in accordance with internationally

accepted audit standards and in any case where the

number of projects for a year is insufficient to allow

the use of a statistical method.

The non-statistical sample method shall cover a

minimum of 10% of projects for which expenditure

has been declared during a year and a minimum of

15% of the expenditure which has been declared

during a year.

4. For the purposes of point (cd) of paragraph 1,

declared expenditure shall be audited based on a

representative sample and, as a general rule, on

statistical sampling methods.

In such cases, the size of the sample shall be sufficient

to enable the Audit Authority to draw up a valid audit

opinion in accordance with point (e) of paragraph 1.

A non-statistical sampling method may be used on the

professional judgment of the Audit Authority, in duly

justified cases, in accordance with internationally

accepted audit standards and in any case where the

number of projects for a year is insufficient to allow

the use of a statistical method.

The non-statistical sample method shall cover a

minimum of 10% of projects for which expenditure

has been declared during a year and a minimum of

15% of the expenditure which has been declared

during a year.

5. When carrying out audits, the Audit Authority shall

take due account of the principles of single audit and

proportionality in relation to the level of risk to the

implementation of the EEA Financial Mechanism.

This shall be, in particular, in order toto avoid

duplication of audits and verifications of the same

expenditure with the objective of minimising the cost

of verifications and audits and the administrative

burden on beneficiaries.

The Audit Authority shall first use all the information

and records referred to in point (k) of Article 5.6.1(k),

including results of verifications, and only request and

obtain additional documents and audit evidence from

the beneficiaries concerned where, based on their

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 56

Current text New text (with track changes) Comments

professional judgement, this is required to support

robust audit conclusions.

6. The Audit Authority and the FMC shall meet on a

regular basis and, unless otherwise agreed, at least

once a year to examine the audit strategy, the aAnnual

aAudit rReport and opinion, to coordinate their audit

plans and methods, and to exchange views on issues

relating to the improvement of management and

control systems.

Article 5.6

Programme Operator

Article 5.6

Programme Operator

1. The Programme Operator shall be responsible for

preparing and implementing the programme in

accordance with the principles described in Article 1.3

and in particular for:

(a) ensuring that projects contribute to the overall

objectives of the EEA Financial Mechanism

2014-2021 and the specific programme outputs,

outcome(s) and objective(s) and that they comply

with this Regulation, the programme agreement

as well as applicable national and European

Union law in all implementation phases;

(b) ensuring that the appropriate level of expertise to

design the programme and develop the results

framework is available;

(c) collecting applications, selecting projects to be

funded and signing project contracts for each

project;

(d) facilitating bilateral cooperation, where relevant;

(e) verifying that the expenditure declared by the

Projects Promoters has actually been incurred and

1. The Programme Operator shall be responsible for

preparing and implementing the programme in

accordance with the principles described in Article 1.3

and in particular for:

(a) ensuring that projects contribute to the overall

objectives of the EEA Financial Mechanism

2014-20212021-2028 and the specific

programme outputs, outcome(s) and objective(s)

and that they comply with this Regulation, the

pProgramme Aagreement as well as applicable

national and European Union law in all

implementation phases;

(b) ensuring that the appropriate level of expertise to

design the programme is available, including and

developing the results framework is available;

(c) processing calls for proposals, collecting

applications, selecting projects to be funded and

signing project contracts for each project;

(d) facilitating bilateral cooperation, where relevant;

This is to emphasize availability of expertise.

Language has been amended for completeness.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 57

Current text New text (with track changes) Comments

complies with this Regulation, the programme

agreement as well as applicable national and

European Union law;

(f) ensuring that payments of the project grant are

made in a timely manner;

(g) ensuring the quality of the implementation of the

programme and verifying the project outputs and

the projects’ progress towards expected

programme’s outcomes, inter alia through

monitoring, including where appropriate, on-the-

spot verification of projects carried out on a

sample basis;

(h) assessing the risks to the effective implementation

of the programme and its results and taking

appropriate action;

(i) conducting annual monitoring of a sample of

projects, selected based on risk assessment and

including random samples;

(j) ensuring that the financial contribution is used

exclusively for the purpose of the programme and

its projects and according to the programme

agreement and that all assets forming part of the

programme are used only for such purposes as

provided for in the programme agreement;

(k) ensuring that there is a system for recording and

storing in computerised form accounting records

for each project under the programme and that the

data on implementation necessary for financial

management, reporting, monitoring, verifications,

audits and evaluation are collected;

(l) establishing an organisational structure of the

Programme Operator that ensures independence

(e) verifying that the expenditure declared by the

Projects Promoters has actually been incurred and

complies with this Regulation, the pProgramme

aAgreement as well as applicable national and

European Union law;

(f) ensuring that payments of the project grant are

made in a timely manner;

(g) ensuring the quality of the implementation of the

programme, and progress towards the projects’

expected results and quality of the results

data;.verifying the project outputs and the

projects’ progress towards expected programme’s

outcomes, inter alia through monitoring,

including where appropriate, on-the-spot

verification of projects carried out on a sample

basis;

(h) assessing the risks to the effective implementation

of the programme and its results and taking

appropriate action;

(i) conducting annual monitoring of a sample of

projects, selected based on risk assessment and

including random samples, including where

appropriate through on-site visits;

(j) ensuring that the financial contribution is used

exclusively for the purpose of the programme and

its projects and according to the pProgramme

aAgreement and that all assets forming part of the

programme are used only for such purposes as

provided for in the pProgramme aAgreement;

(k) ensuring that there is a system for recording and

storing in computerised form accounting records

for each project under the programme and that the

Reference to costs incurred is deleted as simplified cost options has been

added as forms of eligible expenditure.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 58

Current text New text (with track changes) Comments

and functional separation of the division

responsible for verification of incurred

expenditure and approval of payments from other

divisions responsible for the implementation of

the programme;

(m) subject to contrary provisions of the national law

of the Beneficiary State, establishing and

maintaining a separate interest-bearing bank

account dedicated to the funds intended for

regranting;

(n) ensuring that Project Promoters maintain either a

separate accounting system or an adequate

accounting code for all transactions relating to the

project without prejudice to national accounting

rules;

(o) ensuring transparency and availability of

documents in accordance with the requirements of

Article 9.8;

(p) ensuring that the Certifying Authority receives all

necessary information on the procedures and

verifications carried out in relation to expenditure

for the purpose of certification;

(q) drawing up and submitting the interim financial

reports, the annual programme report, the final

programme report and reports on interests earned

in accordance with Articles 6.11, 6.12, 9.3, 9.4

and 9.7;

(r) submitting to the Certifying Authority a forecast

of likely payment applications necessary for the

Certifying Authority to fulfil its obligations in

accordance with Article 9.5;

data on implementation necessary for financial

management, reporting, monitoring, verifications,

audits and evaluation are collected and processed;

(l) establishing an organisational structure of the

Programme Operator that ensures independence

and functional separation of the division

responsible for verification of incurred

expenditure, verification of fulfilment of

conditions for simplified cost options and

approval of payments from other divisions

responsible for the implementation of the

programme;

(m) subject to contrary provisions of the national law

of the Beneficiary State, establishing and

maintaining a separate interest-bearing bank

account dedicated to the funds intended for

regranting;

(n) ensuring that Project Promoters maintain either a

separate accounting system or an adequate

accounting code for all transactions relating to the

project without prejudice to national accounting

rules;

(o) ensuring transparency and availability of

documents in accordance with the requirements of

Article 9.78;

(p) ensuring that the Certifying Authority receives all

necessary information on the procedures and

verifications carried out in relation to expenditure

for the purpose of certification;

(q) drawing up and submitting the Iinterim fFinancial

rReports, the annual programme report, the fFinal

pProgramme rReport and reports on interests

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 59

Current text New text (with track changes) Comments

(s) ensuring entry of project-specific statistical data

to maintain the reporting database;

(t) ensuring that the FMC and the National Focal

Point is upon request, and within reasonable time,

provided with all documents and information

related to the implementation of the programme

and its projects;

(u) ensuring that the Project Promoters are fully

committed and able to implement their projects;

(v) ensuring that all necessary and appropriate

measures are taken to prevent, detect and nullify

any cases of suspected or actual irregularities, that

they are investigated promptly and efficiently and

properly reported and remedied, including

making any financial corrections that may be

appropriate;

(w) ensuring that all relevant European Union,

national and local,legislation (including, but not

limited to, legislation on the environment, public

procurement and state aid) are complied with; and

(x) complying with any other obligations stipulated in

the programme agreement.

earned and paid in accordance with Articles 6.11,

6.812, 9.3, 9.4 and 9.67;

(r) submitting to the Certifying Authority a forecast

of likely payment applications necessary for the

Certifying Authority to fulfil its obligations in

accordance with Article 9.35;

(s) ensuring that there is a system for recording and

storing in computerised form entry of all data

required to fulfil the reporting requirements,

including project-specific statistical data to

maintain the reporting database;

(t) ensuring that the FMC and the National Focal

Point is are upon request, and within reasonable

time, provided with all documents and

information related to the implementation of the

programme and its projects;

(u) ensuring that the Project Promoters are fully

committed and ablehave the necessary capacity

and expertise to implement their projects;

ensuring that all necessary and appropriate

measures are taken to prevent, detect and nullify

any cases of suspected or actual irregularities, that

they are investigated promptly and efficiently and

properly reported and remedied, including

making any financial corrections that may be

appropriate;

(v) ensuring that all projects and activities are

consistent with respect for the values and

principles referred to in Article 1.3, and

abstaining from supporting operations that may

fail to do so;.

This point is moved down as point (y).

In line with Article 1.2 of the Protocol 38d, this point places a responsibility

on the PO to continuously monitor projects and activities for compliance

with the values, even after they are selected.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 60

Current text New text (with track changes) Comments

(w) ensuring that all relevant European Union,

national and local, legislation (including, but not

limited to, legislation on the environment, public

procurement, and state aid and data protection)

are complied with; and

(x) complying with any other obligations stipulated in

the pProgramme aAgreement; and.

(y) ensuring that all necessary and appropriate

measures are taken to prevent, detect and nullify

any cases of suspected or actual irregularities, that

they are investigated promptly and efficiently and

properly reported and remedied, including

making any financial corrections that may be

appropriate.;

2. Verifications to be carried out by the Programme

Operator shall cover administrative, financial,

technical and physical aspects of projects, as

appropriate and in accordance with the principle of

proportionality.

Verifications shall include the following procedures:

(i) administrative verifications in respect of incurred

expenditure reported by Project Promoters;

(ii) on-the-spot verifications of projects.

2. Verifications to be carried out by the Programme

Operator shall cover administrative, financial,

technical and physical aspects of projects, as

appropriate. Verifications shall be risk-based and

proportionate to the risks identified in accordance with

the principle of proportionality.

Verifications shall include the following procedures:

(i) administrative verifications in respect of incurred

expenditure and fulfilment of conditions for simplified

cost options reported by Project Promoters;

(ii) on-the-spot verifications of projects.

This change aims to add a clearer link to the risk-based approach for

verifications.

3. Verifications shall include the following

procedures:

(a) administrative verifications in respect of

incurred expenditure and fulfilment of

This point and the following paragraphs have been renumbered for

consistency

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 61

Current text New text (with track changes) Comments

conditions for simplified cost options

reported by Project Promoters;

(a)(b) on-the-spot verifications of projects.

Examination of proof of expenditure related to the

administrative verifications under point (i) and on-the

spot verifications under point (ii) may be carried out

on a sample basis. The Programme Operator shall

keep records describing and justifying the sampling

method and identifying the project or transactions

selected for verification.

4. Examination of proof of expenditure and fulfilment

of conditions for simplified cost options related to the

administrative verifications under point (i) and on-the

spot verifications under point (ii) may shall be carried

out on a sample basis. The Programme Operator shall

keep records describing and justifying the sampling

method and identifying the project or transactions

selected for verification.

This is to reflect the tasks needed in relation to simplified cost options.

Language is changed to ‘shall’ as a sample based examination of proof of

expenditure is now mandatory, in order to simplify the control environment.

The Programme Operator shall determine the size of

the sample in order to obtain reasonable assurance as

to the legality and regularity of the underlying

transactions, having regard to the level of risk

identified by the Programme Operator for the type of

Project Promoters and projects concerned and audits

by the Audit Authority.

5. The Programme Operator shall determine the size

of the sample in order to obtain reasonable assurance

as to the legality and regularity of the underlying

transactions and as to conditions for reimbursement

met, in line with the principle of proportionality,

having regard to the level of risk identified by the

Programme Operator for the type of Project Promoters

and projects concerned and audits by the Audit

Authority.

The Programme Operator shall establish written

standards and procedures for the verifications carried

out and shall keep records for each verification, stating

the work performed, the date and the results of the

verification, and the measures taken in respect of

irregularities detected.

6. The Programme Operator shall establish written

standards and procedures for the verifications carried

out and shall keep records for each verification, stating

the work performed, the date and the results of the

verification, and the measures taken in respect of

irregularities detected.

3. The Programme Operator shall comply with the

requirements defined by the FMC for submitting

information electronically.

7. The Programme Operator shall comply with the

requirements defined by the FMC for submitting and

transferring information electronically.

The addition of ‘transferring’ should increase interoperability between

Beneficiary States IT systems and Grace.

8. The Programme Operator shall ensure adequate

capacity and expertise to fulfil its responsibilities.

This is to capture resources concerns in a general manner.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 62

Current text New text (with track changes) Comments

Article 5.7

Setting up of management and control systems

Article 5.7

Setting up of management and control systems

1. The National Focal Point shall, within six months of

the date of the last signature of the MoU, submit to the

FMC a detailed description of the management and

control systems, covering in particular the

organisation and procedures of:

(a) the National Focal Point, the Certifying Authority

and any other national entities involved in the

implementation of the EEA Financial Mechanism

2014-2021 according to the MoU;

(b) the Audit Authority and any other entities

carrying out audits under its responsibility.

1. The National Focal Point shall, within six months of

the date of the last signature of the MoU, submit to

the FMC Audit Authority a detailed description of the

management and control systems, covering the

principles and key requirements identified in Article

5.1 and in particular the organisation and procedures

of :

(a) the National Focal Point, the Certifying

Authority, the Audit Authority and any other national

entities involved in the implementation of the EEA

Financial Mechanism 2014-20212021-2028 according

to the MoU.;

(b) the Audit Authority and any other entities

carrying out audits under its responsibility.

The procedure foreseen is lighter than that currently in place, as there is no

longer a requirement for the Donors to review the entire MCS description.

2. Within six months from the approval of the

programme by the FMC the Programme Operator shall

submit to the National Focal Point for approval a

detailed description of the management and control

systems of the Programme Operator, covering in

particular:

(a) the systems for verification, audit and monitoring;

(b) the system for preventing, mitigating, detecting,

reporting on and remedying irregularities; and

(c) the system established to maintain an audit trail of

all supported activities.

2. Within six months from the approval of the

programme by the FMC the Programme Operator shall

submit to the National Focal Point for approval a

detailed description of the management and control

systems of the Programme Operator, covering in

particular:

(a) the systems for verification, audit and monitoring;

(b) the system for preventing, mitigating, detecting,

reporting on and remedying irregularities; and

(c )the system established to maintain an audit trail of

all supported activities.

The requirement for a programme level Management and Control System

description is removed from the Regulation. It is not excluded that the NFP

and POs will still draft a specific document for the POs procedures, but they

can also agree to apply existing procedures or to include them in the national

ones. This is left up to national authorities to agree, and the Regulation does

not put anymore a requirement on them.

The National Focal Point shall inform the FMC of the

approval of the description of the management and

control systems of the Programme Operator within

three months of its submission to the National Focal

The National Focal Point shall inform the FMC of the

approval of the description of the management and

control systems of the Programme Operator within

three months of its submission to the National Focal

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 63

Current text New text (with track changes) Comments

Point. Severe deficiencies should be reported to the

FMC should it not be possible to rectify these within a

reasonable time frame.

Point. Severe deficiencies should be reported to the

FMC should it not be possible to rectify these within a

reasonable time frame.

3. The detailed descriptions referred to in paragraphs

1 and 2 shall be accompanied by a report and an

opinion by the Audit Authority confirming that the

implementation system of the Beneficiary State and

the Programme Operator complies with this

Regulation and generally accepted accounting

principles. The report shall assess the proportionality

of the management and control systems’ requirements

in relation to the effectiveness of achieving the

objectives of the programmes. The report and the

opinion referred to in this paragraph shall be drawn up

by the Audit Authority. Where the Audit Authority

chooses not to carry out audits itself, it shall appoint

an independent and certified auditor to perform these

tasks.

23. The Audit Authority shall review Tthe detailed

descriptions referred to in paragraphs 1 and 2 shall be

accompanied byand draw up a report and an opinion

by the Audit Authority confirming that the

management and control systems implementation

system of the Beneficiary State and the Programme

Operator compliesy with this Regulation and generally

accepted accounting principles. The report shall assess

the proportionality of the management and control

systems’ requirements in relation to the effectiveness

of achieving the objectives of the programmes. The

report and the opinion referred to in this paragraph

shall be drawn up by the Audit Authority. Where the

Audit Authority chooses not to carry out audits itself,

it shall appoint an independent and certified auditor to

perform these tasks. The Audit Authority may, to the

extent possible, base its review on the equivalent

description submitted under the EEA Financial

Mechanism 2014-20212021-2028.

The procedure foreseen is lighter than that currently in place, as there is no

longer a requirement for the Donors to review the entire MCS description

and withhold payments until this has been completed. Instead, the Audit

Authority shall review the MCS descriptions and provide the Donors with

an opinion (only on the national level descriptions). If this is not received

within 12 months of the MoU the Donors may suspend payments.

3. The National Focal Point shall submit to the FMC,

in English and using a template provided by the FMC,

the opinion drawn up in accordance with paragraph 2

concerning the management and control system of the

Beneficiary State.

4. The National Focal Point shall, upon request, submit

to the FMC the detailed description of the

management and control systems of the Programme

Operator in English, accompanied by the documents

referred to in paragraph 3. The National Focal Point

shall submit these documents within two months of the

4. The National Focal Point shall, upon request, submit

to the FMC the detailed description of the

management and control systems of the Programme

Operator in Englishdescribed in paragraphs 1 and 2,

accompanied by the documents referred to in

paragraph 32, in English. The National Focal Point

shall submit these documents within two months of the

This is to clarify that the MCS may be requested by the FMC, in English.

Chapter 5 Management and control systems

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 64

Current text New text (with track changes) Comments

request. The FMC may provide comments within two

months after receipt of the documents.

request. The FMC may provide comments within two

months after receipt of the documents.

5. Prior to disbursing the first payment to any

programme, Technical Assistance or the fund for

bilateral relations, the FMC shall determine whether

the detailed description of the management and control

systems submitted in accordance with paragraph 1 of

this Article meets the minimum requirements. This

paragraph shall not apply to payments in accordance

with paragraph 4 of Article 4.6 and to extraordinary

advance payments in respect of costs related to the

preparation of programmes approved by the FMC, in

accordance with paragraph 8 of Article 8.10.

5. Prior to disbursing the first payment to any

programme, Technical Assistance or the fund for

bilateral relations, the FMC shall determine whether

the detailed description of the management and control

systems submitted in accordance with paragraph 1 of

this Article meets the minimum requirements. This

paragraph shall not apply to payments in accordance

with paragraph 4 of Article 4.6 and to extraordinary

advance payments in respect of costs related to the

preparation of programmes approved by the FMC, in

accordance with paragraph 8 of Article 8.10.

5. The FMC may suspend payments to a Beneficiary

State if an opinion confirming that the management

and control system of the Beneficiary State complies

with this Regulation and generally accepted

accounting principles has not been submitted within

twelve months of the entry into force of the MoU.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 65

Current text New text (with track changes) Comments

Chapter 6

Programmes

Chapter 6

Programmes

Article 6.1

Preparation of programmes

Article 6.1

Preparation of programmes

1. The EEA Financial Mechanism 2014-2021 is

implemented in the Beneficiary States through

programmes. A programme shall contribute to the

objective of the respective programme area agreed in

the MoU, to the overall objectives of the EEA

Financial Mechanism 2014-2021, and shall comply

with the legal framework of the EEA Financial

Mechanism 2014-2021, national and European Union

law.

1. The EEA Financial Mechanism 2014-20212021-

2028 is implemented in the Beneficiary States through

programmes. A programme shall contribute to the

objective of the respective programme area(s) agreed

in the Memorandum of Understanding, to the overall

objectives of the EEA Financial Mechanism 2014-

20212021-2028, and shall comply with the legal

framework of the EEA Financial Mechanism 2014-

20212021-2028, national and European Union law.

Programme areas has been put in plural, as programmes may contribute to

different programme areas.

2. A programme may combine a number of

programme areas, provided all measures under the

programme contribute to one programme area

objective.

2. A programme may combine a number of

programme areas. All projects under the programme

must contribute to only one programme area objective,

provided all measures under the programme contribute

to one programme area objective.

In view of simplification, especially regarding reporting, projects will be

able to contribute to one programme area objective only. It will no longer

be possible to have projects that contribute to multiple programme area

objectives.

3. All programmes shall be in line with the ‘Policy

Framework for the EEA and Norway Grants’.

Reference to what is informally referred to as the “Blue book”.

Article 6.2

Concept note

Article 6.2

Concept Note

1. The Programme Operator shall, on the basis of the

MoU and within the programmes identified therein,

develop a concept note defining the scope and planned

results for each programme. The concept note shall be

prepared in cooperation with the FMO and in

consultation with relevant stakeholders, in particular

Donor Programme Partners and IPOs where

applicable.

1. The Programme Operator shall, Oon the basis of the

Memorandum of Understanding and within the

programmes identified therein, the Programme

Ooperator shall, in cooperation with the Donor

Programme Partner(s), International Partner

Organisation(s) and the FMO, develop a Concept Note

defining the scope and planned results for each

programme. The concept note shall be prepared in

cooperation with the FMO and in consultation with

relevant stakeholders, in particular Donor Programme

Partners and IPOs where applicable. Other

The PO should keep the responsibility and ownership of developing the

Concept Note. This should be done in very close dialogue with the FMO,

DPPs and IPOs. However, the modalities/arrangements for the cooperation

should be settled informally and should not be covered by the Regulation.

The second phrase has been altered to differentiate more clearly between on

the one hand, DPPs and IPOs and, on the other hand, other stakeholders. It

is proposed that stakeholder consultations are optional and no longer

mandatory.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 66

Current text New text (with track changes) Comments

stakeholders may be consulted as relevant, or as

required in the Memorandum of Understanding.

2. The Programme Operator shall, through the

National Focal Point, submit the concept note for each

programme to the FMC within six months from the

date of the designation of the Programme Operator

according to Article 5.2.

2. The Programme Operator shall, through Tthe

National Focal Point shall, submit the Concept Note

for each programme to the FMC within six months

from the date of entry into force of the Memorandum

of Understanding.the date of the designation of the

Programme Operator according to Article 5

The NFPs are responsible to submit the Concept Note to the FMC.

As it is proposed that the POs will be appointed in the MoU (see

modification proposal for Article 2.5.2), the appointment of the PO should

no longer be a delaying factor.

The proposal is to have 6 months for CN submission + 2 months for Donor

review of the CN + 4 months for finalising the Programme

Agreement+Donor review of the programme (approval or rejection of the

programme).

3. The concept note shall briefly describe:

(a) the justification and main features of the

programme;

(b) the expected contribution towards the two overall

objectives and the programme’s objective, including

planned outcome(s) and outputs, indicators, risks and

target group(s);

(c) how special concerns from the MoU and where

relevant, the common values identified in paragraph 1

of Article 1.3, will be integrated in the planning and

implementation of the programme;

(d) the tentative overall budget;

(e) any small grant schemes;

(f) any pre-defined projects,

(g) any financial instruments.

3. The Concept Note shall briefly describe:

(a) the programme objective(s) and the expected

contribution towards the two overall objectives;

(b) the main challenges to be addressed, expected

results and approach;

(c) how conditions and/or specificspecial concerns

from the Memorandum of Understanding and, where

relevant, the common values and principles identified

in paragraph 1 of Article 1.3.1, will be integrated in

the development planning and implementation of the

programme;

(d) how bilateral cooperation will be addressed and

main priorities for the bilateral funds in the

programme;

(e) the proposed calls and pre-defined projects;

(f) the tentative overall budget.

(a) the justification and main features of the

programme;

(b) the expected contribution towards the two overall

objectives and the programme’s objective, including

The Concept Note should be simplified and contain less detail. The template

shall be provided by the FMC.

- (a) The programme objective(s) is the starting point for programmes.

- (b) A short description of challenges to be addressed, expected results and

approach (the description should reflect what are the challenges to be

addressed, what do you want to achieve, what do you want to do and how

to obtain the desired results). The description should be given per outcome

(see CN template). The term “approach” covers modalities, activities, target

group(s) and risks and assumptions, which is further indicated in the

Concept Note template. Reference to indicators is removed in view of

simplification and less detail.

(d) As the proposal is to have a split between national and programme level

bilateral funds, it should be addressed in the CN for each programme what

the main priorities are for using the bilateral funds in the programme.

Small grant schemes are removed (in line with proposal to remove small

grant schemes as a specific modality – see below).

The requirement for a description of any pre-defined projects is covered by

point (b) and (e) and is further clarified in the CN template.

Financial instruments are removed.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 67

Current text New text (with track changes) Comments

planned outcome(s) and outputs, indicators, risks and

target group(s);

(c) how special concerns from the MoU and where

relevant, the common values identified in paragraph 1

of Article 1.3, will be integrated in the planning and

implementation of the programme;

(d) the tentative overall budget;

(e) any small grant schemes;

(f) any pre-defined projects,

(g) any financial instruments.

The content of this article is aligned with the content of the Concept note

template. The purpose of this paragraph is to reflect the main elements that

will be requested in the CN.

4. The FMC shall assess the concept note and shall

make comments. Any comments made by the FMC

shall be taken into account in the programme’s further

preparation.

4. The FMC shall assess the Concept Note and

mayshall make comments. Consistency with the

values and principles referred to in Article 1.3 shall

form part of the assessment of the FMC. Any

comments made by the FMC shall be taken into

account in the programme’s further preparation. The

FMC shall conclude its review of the Concept Note

within two months of its submission.

The FMC has the opportunity, but not an obligation to make comments.

A deadline of two months to review the concept note has been introduced

for the FMC.

5. The FMC may decide to reject the concept note. In

such cases, the Programme Operator may, through the

National Focal Point, resubmit once a revised concept

note within two months from the date of the rejection.

The National Focal Point may, as an alternative and

within the same deadline, propose different use of the

funds. If funds are to be used for another programme

and the receiving programme has already been

approved, such reallocation of funds shall comply with

paragraph 6 of Article 6.9.

5. The FMC may decide take a reasoned decision to

reject the Concept Note. In such cases, the Programme

Operator National Focal Point may, through the

National Focal Point, resubmit once a revised Concept

Note within two months from the date of the rejection.

The National Focal Point may, as an alternative and

within the same deadline, propose different use of the

funds. If funds are to be used for another programme

and the receiving programme has already been

approved, such reallocation of funds shall comply with

paragraph 6 of Article 6.97.5.

It is clarified in the text that the FMC shall provide justification in case it

decides to reject a concept note.

6. The concept note template is provided in Annex 5. 6. The Concept Note template shall be provided by the

FMC is provided in Annex 5.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 68

Current text New text (with track changes) Comments

Article 6.3

Programme agreement

Article 6.3 Approval of programmes Programme agreement

The title of Article 6.3 has been amended to better reflect the content of

the article.

1. On the basis of the concept note and the comments

of the FMC on the concept note, the FMO shall

prepare a draft programme agreement setting out the

terms and conditions of the operation of the

programme as well as the roles and responsibilities of

the parties. The Beneficiary State shall provide any

supplementary information requested, including but

not limited to, a risk assessment and mitigation

analysis, information related to the management of the

programme and a communication plan. The FMO and

the Beneficiary State shall endeavour to finalise the

draft programme agreement within six months of the

date of the submission of the concept note in

accordance with Article 6.2.

1. On the basis of the Concept Note and the comments

of the FMC on the Concept Note, the FMO shall

prepare a draft Pprogramme Aagreement setting out

the terms and conditions of the operation of the

programme as well as the roles and responsibilities of

the parties. The Beneficiary State shall provide any

supplementary information requested, including but

not limited to, a risk assessment and response

mitigation analysis and, information related to the

management of the programme. and a communication

plan. The FMO and the Beneficiary State shall

endeavour to finalise the draft programme agreement

within six months of the date of the submission of the

concept note in accordance with Article 6.2.

2. The FMC may decide to approve or reject support

to the programme. When approving a programme, the

FMC may set conditions and/or require modifications

to the draft programme agreement.

2. The FMC may decide to approve or reject support

to the programme. Consistency with the values and

principles referred to in Article 1.3 shall form part of

the assessment of the FMC. The FMC shall make its

decision within four months of the conclusion of its

review referred to in Article 6.2.4, provided that any

supplementary information requested has been

provided by the Beneficiary State. When approving

support to a programme, the FMC may set conditions

and/or require modifications to the draft Pprogramme

Aagreement. The Beneficiary State shall be given the

opportunity to provide its views prior to a decision by

the FMC to reject support to a programme.

The provision is modified in order to create a stricter deadline of four

months (from concept note review) for the conclusion of the entire

programme approval process.

A provision has been added to indicate that the Beneficiary State shall be

heard prior to an FMC decision to reject a programme.

3. For each approved programme a programme

agreement shall be concluded between the FMC and

the National Focal Point.

3. For each approved programme a Pprogramme

Aagreement shall be concluded between the FMC and

the National Focal Point.

4. The programme agreement template is provided in

Annex 6.

4. The Pprogramme Aagreement template is provided

in Annex 64.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 69

Current text New text (with track changes) Comments

Article 6.4

Grant rates and minimum size of project grants

Article 6.4

Grant rates and minimum size of project grants

1. The contribution from the EEA Financial

Mechanism 2014-2021 shall not exceed 85% of

eligible expenditure of the programme, except for:

(a) programmes under the programme area

“Civil Society”;

(b) programmes operated by the FMO, inter-

governmental organisations or Donor State entities in

accordance with Article 6.13; and

I other programmes of special interest,

where the FMC may set a higher programme grant

rate.

1. The contribution from the EEA Financial

Mechanism 2014-20212021-2028 shall not exceed

85% of eligible expenditure of the programme, except

for:

(a) programmes under the programme area

“Civil Society”;

(ab) programmes operated by the FMO, inter-

governmental organisations or Donor State entities in

accordance with Article 6.1013; and

(bc) other programmes of special interest,

where the FMC may set a higher programme grant

rate.

Point (a) is deleted as there will be a global fund for Civil Society (in line

with Protocol 38D).

Reference to programmes operated by intergovernmental organisations or

Donor State entities has been removed, as this option has not been used

under the 14-21 FM and is not expected to be relevant for the 21-28 FM

either.

2. The maximum project grant rate shall be calculated

as a percentage of the total eligible expenditure of the

project, proposed in the concept note and determined

in the programme agreement. It shall take into account

the need to ensure Project Promoters’ commitment and

ownership, as well as sustainability of the project.

When setting the project grant rate, the Programme

Operator shall further take into account any economic

benefit, e.g. cost savings or increased profit, which is

a result from receiving a financial contribution.

Economic benefits shall be used in a manner which

supports the objectives of the project. The applicable

rules on state aid, procedural and substantive, shall be

complied with.

2. The maximum project grant rate shall be calculated

as a percentage of the total eligible expenditure of the

project, proposed in the Concept Note and determined

in the Pprogramme Aagreement. It shall take into

account the need to ensure Project Promoters’

commitment and ownership, as well as sustainability

of the project. When setting the project grant rate, the

Programme Operator shall further take into account

any economic benefit, e.g., cost savings or increased

profit, which is a result from receiving a financial

contribution. Economic benefits shall be used in a

manner which supports the objectives of the project.

The applicable rules on state aid , procedural and

substantive, shall be complied with.

3. In case of support to NGOs and social partners the

project grant rate may be up to 90% of eligible

expenditure of the project.

3. In case of support to NGOs and social partners the

project grant rate may be up to 90% of eligible

expenditure of the project.

The requirement of minimum 10 % co-financing for NGOs has been

removed.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 70

Current text New text (with track changes) Comments

4. Co-financing under paragraphs 1 to 3 shall be in the

form of cash, including electronic transfers.

3. Co-financing under paragraphs 1 andto 23 shall be

in the form of cash, including electronic transfers.

5. In case of projects where the project promoter is an

NGO or a social partner, in-kind contribution in the

form of voluntary work may constitute up to 50% of

the co-financing required by the programme for the

project. In exceptional cases, and subject to approval

by the FMC, in-kind contribution in the form of

voluntary work may constitute up to 100% of the co-

financing required.

4. In case of projects where the project promoter is an

NGO or a social partner Project Promoters and project

partners that are NGOs or social partners, in-kind

contribution in the form of voluntary work may

constitute up to 10050% of anythe project co-

financing required. required by the programme for the

project In exceptional cases, and subject to approval

by the FMC, in-kind contribution in the form of

voluntary work may constitute up to 100% of the co-

financing required.

As co-financing for NGOs would no longer be required in all cases, there

should also not be a minimum level of cash contribution required.

In cases where co-financing is required, it can be 100% in-kind contribution

in the form of voluntary work.

6. The in-kind contribution referred to in paragraph 5

may be provided only by the project promoter and/or

any NGO or social partner acting as project partner.

The Programme Operator shall specify the appropriate

unit prices for voluntary work which shall be in

accordance with salary normally paid for such work in

the Beneficiary State, including the required social

security contributions. The prices may vary depending

on region in which the work is performed or the type

of voluntary work, and may be adjusted during the

implementation of the Programme in order to take into

account changes in salaries.

5.. The in-kind contribution referred to in paragraph 5

may be provided only by the project promoter and/or

any NGO or social partner acting as project partner.

The Programme Operator shall specify the appropriate

unit prices for voluntary work which shall be in

accordance with salary normally paid for such work in

the Beneficiary State, including the required social

security contributions. The prices may vary depending

on region in which the work is performed or the type

of voluntary work, and may be adjusted during the

implementation of the Programme in order to take into

account changes in salaries.

This first sentence of the paragraph is merged with the paragraph above.

7. In case of projects under programmes falling under

the programme area “Research”, in-kind contribution

in the form of labour may constitute up to 100% of the

co-financing required for the project. The Programme

Operator shall specify the appropriate unit prices for

the labour which shall be in accordance with salary

normally paid for such labour in the Beneficiary State,

including the required social security contributions.

The prices may vary depending on region in which the

labour is performed or the type of labour, and may be

adjusted during the implementation of the Programme

in order to take into account changes in salaries.

6. In case of projects under programmes falling under

the programme area “Research”, in-kind contribution

in the form of labour may constitute up to 100% of the

co-financing required for the project. The Programme

Operator shall specify the appropriate unit prices for

the labour which shall be in accordance with salary

normally paid for such labour in the Beneficiary State,

including the required social security contributions.

The prices may vary depending on region in which the

labour is performed or the type of labour, and may be

adjusted during the implementation of the Programme

in order to take into account changes in salaries.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 71

Current text New text (with track changes) Comments

8. The amount of grant assistance applied for within a

programme shall normally not be less than

€ 1,000,000 and, without prejudice to paragraph 9, not

less than € 200,000.

7. The amount of grant assistance applied for within a

programme shall be proposed in the Concept Note and

specified in the Programme Agreement.normally not

be less than € 1,000,000. And, wiWithout prejudice to

paragraph 9, it shall not be less than € 200,000.

In order to reduce complexity and allow for a programme specific approach,

it is proposed to remove all references to project size and foresee that this is

defined in the programme development phase.

9. The Programme Operator may propose a lower

threshold in the following cases:

(a) programme areas “Education, Scholarships,

Apprenticeships and Youth Entrepreneurship”,

“Cultural Entrepreneurship, Cultural Heritage and

Cultural Cooperation”, “Civil Society” and “ Asylum

and Migration”;

(b) small grants referred to in Article 6.6, fund for

bilateral relations referred to in Article 4.6;

(c) scholarships; and

(d) projects targeting Roma inclusion.

9. The Programme Operator may propose a lower

threshold in the following cases:

(a) programme areas “Education, Scholarships,

Apprenticeships and Youth Entrepreneurship”,

“Cultural Entrepreneurship, Cultural Heritage and

Cultural Cooperation”, “Civil Society” and “ Asylum

and Migration”;

(b) small grants referred to in Article 6.6, fund for

bilateral relations referred to in Article 4.6;

(c) scholarships; and

(d) projects targeting Roma inclusion.

Deleted as per changes to the above paragraph.

Article 6.5

Selection of pre-defined projects

Article 6.5

Selection of pre-defined projects

1. In addition to any pre-defined project identified in

the MoU, the Programme Operator may propose any

pre-defined projects to be implemented within

programmes. Pre-defined projects shall, where

possible, be identified in the concept note.

1. In addition to any pre-defined project identified in

the Memorandum of Understanding, the Programme

Operator may propose any pre-defined projects to be

implemented within programmes. Pre-defined

projects shall, where possible, be identified in the

Concept Note.

2. The following information on the pre-defined

projects shall be provided in the concept note:

(a) background and justification for the project

including reference to relevant national priorities;

(b) objective and expected outcome(s) of the project;

(c) information on the Project Promoter and project

partner(s);

2. The following information on the pre-defined

projects may be requested by the FMCshall be

provided in the concept note:

(a) background and justification for the project

including reference to relevant national priorities;

(b) objective and expected outcome(s) of the project;

The text is adapted to reflect that less information on PDPs is mandatory at

the CN stage but may be requested by the FMC.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 72

Current text New text (with track changes) Comments

(d) the results of feasibility studies when applicable;

(e) a timetable for implementing the project; and

(f) budget outline showing the total planned financial

resources and the planned contribution from the

EEA Financial Mechanism 2014-2021.

(c) information on the Project Promoter and project

partner(s);

(d) the results of feasibility studies, whereen

applicable;

(e) a timetable for implementing the project; and

(f) a budget outline showing the total planned

financial resources and the planned contribution

from the EEA Financial Mechanism 2014-

20212021-2028.

3. The Programme Operator shall, prior to signing a

project contract for a pre-defined project, appraise the

project in order to verify its quality and contribution to

the objectives of the Programme as well as compliance

with EU and national legislation. The National Focal

Point shall notify the FMC of the positive appraisal of

pre-defined projects.

3. The Programme Operator shall, prior to signing a

project contract for a pre-defined project,, appraise the

project in order to verify the project’sits quality and

contribution to the objectives of the Programme as

well as compliance with the legal framework, EU and

national legislation. The National Focal Point shall

notify the FMC of the positive appraisal of pre-defined

projects.

The appraisal process has proven to be a bottleneck for the implementation

in different Beneficiary States. Therefore, it is proposed to be deleted.

Article 6.6

Small grant schemes within a programme

Article 6.6 Small grant schemes within a programme

1. The Programme Operator may in the concept note

suggest the establishment of one or more small grant

schemes within a programme.

1. The Programme Operator may in the concept note

suggest the establishment of one or more small grant

schemes within a programme.

2. The combined allocation to the small grant

scheme(s) shall not be more than 20 % of the eligible

expenditure of the programme.

2. The combined allocation to the small grant

scheme(s) shall not be more than 20 % of the eligible

expenditure of the programme.

3. The amount of grant assistance applied for within a

small grant scheme shall not be less than € 5,000 and

not more than € 200,000. Scholarships to natural

persons may be for less than € 5,000.

3. The amount of grant assistance applied for within a

small grant scheme shall not be less than € 5,000 and

not more than € 200,000. Scholarships to natural

persons may be for less than € 5,000.

4. The small grant scheme(s) shall normally be

managed and implemented by the Programme

4. The small grant scheme(s) shall normally be

managed and implemented by the Programme

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 73

Current text New text (with track changes) Comments

Operator. The Programme Operator may sub-contract

to one or more public or private entities, commercial

or non-commercial, as well as non-governmental

organisations, the management and implementation of

small grant schemes. The sub-contracted entity shall

have strong ties to the sector within which the

programme belongs. Such sub-contracting shall be

without prejudice to the responsibility of the

Programme Operator for the programme. The

management costs of a small grant scheme shall be

counted as part of the management costs of the

Programme Operator in respect of the ceiling referred

to in paragraph 2 of Article 8.10.

Operator. The Programme Operator may sub-contract

to one or more public or private entities, commercial

or non-commercial, as well as non-governmental

organisations, the management and implementation of

small grant schemes. The sub-contracted entity shall

have strong ties to the sector within which the

programme belongs. Such sub-contracting shall be

without prejudice to the responsibility of the

Programme Operator for the programme. The

management costs of a small grant scheme shall be

counted as part of the management costs of the

Programme Operator in respect of the ceiling referred

to in paragraph 2 of Article 8.10.

5. In cases where the Programme Operator sub-

contracts the management and implementation of a

small grant scheme, the selection of the small grant

scheme operator by the Programme Operator shall be

made in compliance with public procurement rules.

The small grant scheme operator shall provide

guarantees of its solvency and competence in the

domain concerned as well as in administrative and

financial management.

5. In cases where the Programme Operator sub-

contracts the management and implementation of a

small grant scheme, the selection of the small grant

scheme operator by the Programme Operator shall be

made in compliance with public procurement rules.

The small grant scheme operator shall provide

guarantees of its solvency and competence in the

domain concerned as well as in administrative and

financial management.

6. The provisions of this Regulation applicable to the

Programme Operator shall be applicable mutatis

mutandis to the small grant scheme operator, with the

exception that reports of the latter shall be

incorporated into the reporting structures of the

Programme Operator.

6. The provisions of this Regulation applicable to the

Programme Operator shall be applicable mutatis

mutandis to the small grant scheme operator, with the

exception that reports of the latter shall be

incorporated into the reporting structures of the

Programme Operator.

Article 6.7

Financial Instruments

Article 6.7 Financial Instruments

1. With the agreement of th20e FMC, financial

instruments may be used to contribute to the

achievement of the specific objectives of a

Programme, to support activities which are expected

1. With the agreement of the FMC, financial

instruments may be used to contribute to the

achievement of the specific objectives of a

Programme, to support activities which are expected

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 74

Current text New text (with track changes) Comments

to be financially viable but do not give rise to sufficient

funding from market sources.

to be financially viable but do not give rise to sufficient

funding from market sources.

2. Support of financial instruments shall be based on

an ex ante assessment which has established evidence

of market failures or suboptimal investment situations,

and the estimated level and scope of public investment

needs, including types of financial instruments to be

supported. Financial instruments should be provided

through structures set up at national, regional,

transnational or cross-border level.

2. Support of financial instruments shall be based on

an ex ante assessment which has established evidence

of market failures or suboptimal investment situations,

and the estimated level and scope of public investment

needs, including types of financial instruments to be

supported. Financial instruments should be provided

through structures set up at national, regional,

transnational or cross-border level.

3. Where financial instruments are used, the provisions

of this Regulation and primarily those relating to the

selection of projects and eligibility of expenditure,

may not apply. Any proposal to use financial

instruments shall be identified in the concept note. All

relevant modalities describing the implementation of

financial instruments shall be specified in the

programme agreement.

3. Where financial instruments are used, the provisions

of this Regulation and primarily those relating to the

selection of projects and eligibility of expenditure,

may not apply. Any proposal to use financial

instruments shall be identified in the concept note. All

relevant modalities describing the implementation of

financial instruments shall be specified in the

programme agreement.

Article 6.8

Programme implementation agreement

Article 6.6 Programme implementation

agreementImplementation of the Programme

1. For each approved programme a programme

implementation agreement shall be concluded

between the National Focal Point and the Programme

Operator.

1. For each approved programme a programme

implementation agreement shall be concluded

between the National Focal Point and the Programme

Operator shall ensure that the implementation of the

programme by the Programme Operator is in line with

the Programme Agreement.

The requirement to have a programme implementation agreement is deleted.

However, an alternative provision is inserted to make sure that the

programme agreement between the Donors and the NFP is implemented by

the PO and the applicable legal framework is respected.

2. In cases where a programme implementation

agreement cannot, due to provisions in the national

legislation, be made between the National Focal Point

and the Programme Operator, the Beneficiary State

may instead issue a legislative or administrative act of

similar effect and content.

2. In cases where a programme implementation

agreement cannot, due to provisions in the national

legislation, be made between the National Focal Point

and the Programme Operator, the Beneficiary State

may instead issue a legislative or administrative act of

similar effect and content.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 75

Current text New text (with track changes) Comments

3. The programme implementation agreement shall set

out the terms and conditions of the operation of the

programme as well as the roles and responsibilities of

the parties. It shall in particular include provisions that

ensure that the Programme Operator undertakes to

comply fully with the provisions of the legal

framework of the EEA Financial Mechanism 2014-

2021 referred to in Article 1.5 that are relevant for the

operation of the programme, including any obligations

that are valid after the programme has been completed.

The programme implementation agreement shall

contain an explicit reference to the programme

agreement and this Regulation and, as a minimum,

provisions on the following:

(a) obligations regarding reporting that enables the

National Focal Point to comply with its reporting

obligations to the FMC;

(b) obligations related to the Programme Operator’s

reporting obligations to the FMC and the

Certifying Authority and its duty to provide

documents upon request;

(c) the maximum amount of the programme grant and

its breakdown between the items listed in Article

8.1;

(d) the eligibility of expenditures;

(e) the first and final dates of eligibility of

expenditures;

(f) modifications of the programme;

(g) ensuring that the access requested in relation to

monitoring, audits and evaluations is provided

without delay;

3. The programme implementation agreement shall set

out the terms and conditions of the operation of the

programme as well as the roles and responsibilities of

the parties. It shall in particular include provisions that

ensure that the Programme Operator undertakes to

comply fully with the provisions of the legal

framework of the EEA Financial Mechanism 2014-

20212021-2028 referred to in Article 1.5 that are

relevant for the operation of the programme, including

any obligations that are valid after the Pprogramme

has been completed. The programme implementation

agreement shall contain an explicit reference to the

Pprogramme Aagreement and this Regulation and, as

a minimum, provisions on the following:

obligations regarding reporting that enables the

National Focal Point to comply with its reporting

obligations to the FMC;

obligations related to the Programme Operator’s

reporting obligations to the FMC and the Certifying

Authority and its duty to provide documents upon

request;

the maximum amount of the programme grant and its

breakdown between the items listed in Article 8.1;

the eligibility of expenditures;

(a) the first and final dates of eligibility of

expenditures;

(b) modifications of the Pprogramme;

(c) ensuring that the access requested in relation to

monitoring, audits and evaluations is provided

without delay;

(d) ensuring that obligations regarding information

and communication are complied with;

(e) the right of the National Focal Point to suspend

payments and request reimbursement from the

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 76

Current text New text (with track changes) Comments

(h) ensuring that obligations regarding information

and communication are complied with;

(i) the right of the National Focal Point to suspend

payments and request reimbursement from the

Programme Operator in case decision on such

actions is taken by the FMC or the National Focal

Point;

(j) that termination of the programme agreement

referred to in Article 6.3 may result in a

termination of the programme implementation

agreement; and

(k) a reference to programme partnerships, if

relevant.

Programme Operator in case decision on such

actions is taken by the FMC or the National Focal

Point;

(f) that termination of the Pprogramme Aagreement

referred to in Article 6.3.3 may result in a

termination of the programme implementation

agreement; and

a reference to programme partnerships, if

relevant.

4. The National Focal Point shall warrant that the

obligations of the Programme Operator under the

programme implementation agreement are valid and

enforceable under the applicable national law of the

Beneficiary State. In case of any inconsistency

between the programme implementation agreement

and the legal framework of the EEA Financial

Mechanism 2014-2021 as defined in Article 1.5 of this

Regulation, the latter shall prevail.

2. The National Focal Point shall warrant that the

obligations of the Programme Operator under arising

from the Pprogramme implementation Aagreement

are valid and enforceable under the applicable national

law of the Beneficiary State. In case of any

inconsistency between any national rules and

procedures necessary for the implementation of the

programme the programme implementation

agreement and the legal framework of the EEA

Financial Mechanism 2014-20212021-2028 as

defined in Article 1.5 of this Regulation, the latter shall

prevail.

5. Before any payment is made to the Programme, the

National Focal Point shall notify the FMC of the

signature of the programme implementation

agreement. This paragraph shall not apply to payments

in accordance with paragraph 4 of Article 4.6 and

extraordinary advance payments in respect of costs

related to the preparation of programmes approved by

the FMC, in accordance with paragraph 8 of Article

8.10.

5. Before any payment is made to the Programme, the

National Focal Point shall notify the FMC of the

signature of the programme implementation

agreement. This paragraph shall not apply to payments

in accordance with paragraph 4 of Article 4.6.5 and

extraordinary advance payments in respect of costs

related to the preparation of programmes approved by

the FMC, in accordance with paragraph 8 of Article

8.10.8.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 77

Current text New text (with track changes) Comments

Article 6.9

Modification of programmes

Article 6.7

Modification of programmes

1. Unless otherwise explicitly stipulated in the

programme agreement, any modification of the

programme is subject to prior approval by the FMC.

1. Unless otherwise explicitly stipulated in the

Pprogramme Aagreement, any modification of the

Pprogramme is subject to prior approval by the FMC.

2. Programmes may be modified, in particular in one

or more of the following cases:

(a) in order to respond to unforeseen events in the

Beneficiary States;

(b) in order to take into account the conclusions of the

review of the implementation framework at an

annual meeting;

(c) in order to take into account conclusions from an

evaluation referred to in Chapter 10;

(d) when changes are necessary to enhance the

impact of the programme; or

(e) in order to mitigate risks and/or implementation

difficulties.

2. Programmes may be modified, in particular in one

or more of the following cases:

(f) in order to respond to unforeseen events in the

Beneficiary States;

(g) in order to take into account the conclusions of the

review of the implementation framework at an

annual meeting;

(h) in order to take into account conclusions from an

evaluation referred to in Chapter 10;

(i) when changes are necessary to enhance the

impact of the programme; or

in order to mitigate risks and/or implementation

difficulties.

As the list is providing examples, and is not exhaustive, there seems to be

limited added value of having this list.

3. The Programme Operator shall describe and justify

the modification, as well as the likely impact on the

financial figures, risk assessment, outputs and

outcomes of the programme. The National Focal Point

shall provide its provisional approval to the

modification proposal.

2. The Programme Operator shall describe and justify

the modification, including the as well as the likely

impact on the financial figures and the expected effect

on, risks assessment, outputs and outcomes of the

Pprogramme. The National Focal Point shall provide

its provisional approval to the modification proposal.

4. The FMC shall assess the proposed modification

and provide a formal response no later than two

months following the receipt of all relevant documents

and necessary information.

3. The FMC shall assess the proposed modification

and provide a formal response not later than two

months following the receipt of all relevant documents

and necessary information. Consistency with the

values and principles referred to in Article 1.3 shall

form part of the assessment of the FMC.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 78

Current text New text (with track changes) Comments

5. The modification shall be formalised through an

amendment of the programme agreement referred to in

Article 6.3, where necessary.

4. The modification shall be formalised through an

amendment of the Pprogramme Aagreement referred

to in Article 6.3.3, where necessary.

6. Should a modification of a programme result in a

reduction of the programme grant, the National Focal

Point may allocate the amount that becomes available

to other approved programmes within the Beneficiary

State, the fund for bilateral relations and/or Technical

Assistance. A prior approval of the FMC and of the

Programme Operator of the programme receiving the

funds shall be required. The modification shall be in

compliance with the MoU. Any such allocation to

programmes must be completed and formalised no

later than 30 April 2023.

5. Should a modification of a programme result in a

reduction of the programme grant, the National Focal

Point may allocate the amount that becomes available

to other approved programmes within the Beneficiary

State, the funds for bilateral relations and/or

tTechnical aAssistance. A prior approval of the FMC

and of the Programme Operator of the Pprogramme

receiving the funds shall be required. The modification

shall be in compliance with the Memorandum of

Understanding. Any such allocation to programmes

must be completed and formalised not later than 30

April 20232030. This deadline does not apply to

allocations to the funds for bilateral relations and/or

technical assistance.

A phrase has been added to make it clear that BF/TA are not considered

programmes for this purpose and that reallocations to TA/BF can be done

after this date.

Article 6.10

Screening by the European Commission

Article 6.10

Screening by the European Commission

On explicit request from the Donor States or the

Beneficiary State, the European Commission shall

undertake a screening of the concept note for a specific

programme before its adoption, to ensure

compatibility with the European Union’s cohesion

policy.

On explicit request from the Donor States or the

Beneficiary State, the European Commission shall

undertake a screening of the concept note for a specific

programme before its adoption, to ensure

compatibility with the European Union’s cohesion

policy.

This article has been deleted as this no longer appears in the Protocol.

(Previously Art. 10.3a).

Article 6.11

Annual programme report

Article 6.11 Annual programme report

1. The Programme Operator shall submit an annual

programme report to the FMC and the National Focal

Point using a template provided by the FMC. The main

purpose of the report is:

(a) to provide key information on implementation of

the programme including the achieved outputs and

outcomes and their link to the programme objective,

1. The Programme Operator shall submit an annual

programme report to the FMC and the National Focal

Point using a template provided by the FMC. The main

purpose of the report is:

(a) to provide key information on implementation of

the programme including the achieved outputs and

outcomes and their link to the programme objective,

The APR is proposed to be merged with the Strategic Report to form a new

Country Report. This article is therefore deleted.

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 79

Current text New text (with track changes) Comments

the overall objectives of the EEA Financial

Mechanism 2014-2021, and Article 1.3, as relevant;

(b) to identify any issues which affect the

implementation of the programme and the measures

taken to address them, a risk assessment and planned

mitigating actions.

the overall objectives of the EEA Financial

Mechanism 2014-2021, and Article 1.3, as relevant;

(b) to identify any issues which affect the

implementation of the programme and the measures

taken to address them, a risk assessment and planned

mitigating actions.

2. The reporting periods for the annual programme

reports shall be the calendar year. The report shall be

submitted not later than 15 February each year. The

first annual reports for programmes approved by the

FMC in the first half of the year shall be submitted in

the following year; first annual reports from other

programme shall be submitted in the second year

following their approval.

2. The reporting periods for the annual programme

reports shall be the calendar year. The report shall be

submitted not later than 15 February each year. The

first annual reports for programmes approved by the

FMC in the first half of the year shall be submitted in

the following year; first annual reports from other

programme shall be submitted in the second year

following their approval.

3. The FMC shall inform the National Focal Point and

the Programme Operator of its opinion on the annual

programme report within two months of the date of

receipt. If the FMC does not respond within the time

limit laid down, the report shall be considered to have

been accepted.

3. The FMC shall inform the National Focal Point and

the Programme Operator of its opinion on the annual

programme report within two months of the date of

receipt. If the FMC does not respond within the time

limit laid down, the report shall be considered to have

been accepted.

Article 6.12

Final programme report

Article 6.8 Final Pprogramme Rreport

1. The Programme Operator shall, through the

Certifying Authority, submit a final programme

report to the FMC and the National Focal Point

using a template provided by the FMC. The main

purpose of the report is to provide:

(a) an assessment of the programme’s contribution to

the overall objectives of the EEA Financial

Mechanism 2014-2021, the objective and

outcome(s) of the programme as well as Article

1.3, as relevant ;

(b) synthesis of findings of relevant evaluations;

1. The Programme Operator shall, through the

Certifying Authority, submit a Ffinal Pprogramme

Rreport to the FMC and the National Focal Point using

a template provided by the FMC. The main purpose of

the report is to provide:

(a) an assessment of the programme’s contribution to

the overall objectives of the EEA Financial

Mechanism 2014-20212021-2028, the objective

and outcome(s) of the Pprogramme as well as the

values and principles referred to in Article 1.3, as

relevant ;

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 80

Current text New text (with track changes) Comments

(c) an overall assessment of the implementation of

the programme, including comparison to the plans

set out in the programme and any lessons learned;

(d) overview of irregularities and measures taken to

remedy these;

(e) specific details in respect of meeting and/or

adapting financial plans; and

(f) financial information, including a calculation of

the final balance referred to in Article 9.4.

(b) synthesis of findings of relevant evaluations;

(c) an overall assessment of the implementation of

the Pprogramme, including comparison to the

plans set out in the Pprogramme and any lessons

learned;

(d) overview of irregularities and measures taken to

remedy these;

(e)(d) specific details in respect of meeting and/or

adapting financial plans; and

(f)(e) financial information, including a calculation

of the final balance referred to in Article 9.4.

(d) is not deemed necessary, as it appears in FMO reports and is publicly

available.

2. The final programme report shall be forwarded to

the FMC by the Certifying Authority, which shall

certify the financial annex to the report in accordance

with Article 5.4, not later than four months after the

final date of eligibility of programme management

costs.

2. The Ffinal Pprogramme Rreport shall be forwarded

to the FMC by the Certifying Authority, which shall

certify the financial annex to the report in accordance

with Article 5.4, not later than 30 April 2032four

months after the final date of eligibility of programme

management costs.

The deadline for submitting the final programme report is aligned with the

final date of eligibility for programme management costs.

3. The FMC shall review the final programme report

in order to determine whether it fulfils its formal and

substantive requirements. The FMC shall approve the

report no later than two months following the receipt

of the report and all relevant documents and necessary

information.

3. The FMC shall review the Ffinal Pprogramme

Rreport in order to determine whether it fulfils its

formal and substantive requirements. The FMC shall

approve the report not later than two months following

the receipt of the report and all relevant documents and

necessary information.

4. The approved final programme reports, including

the summary for the general public shall be published

on the website of the National Focal Point within one

month from the approval of the report by the FMC.

4. The approved Ffinal Pprogramme Rreports,

including the summary for the general public shall be

published on the website of the National Focal Point

within one month from the approval of the report by

the FMC.

Article 6.13

Programmes operated by the FMO, inter-

governmental organisations or Donor State

entities

Article 6.9

Programmes operated by the FMO, inter-

governmental organisations or Donor State

entities

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 81

Current text New text (with track changes) Comments

1. Unless otherwise agreed in the MoU, the FMO shall

be responsible for the operations of programmes

falling under the programme area “Civil Society”.

1. Unless otherwise agreed in the MoU, the FMO shall

be responsible for the operations of programmes

falling under the programme area “Civil Society”.

Deleted since there will be a global fund for civil society (see Article 2.4)

2. The National Focal Point, with the consent of the

FMC, may entrust the operations of a programme to

the FMO, inter-governmental organisations or Donor

State entities.

1. The Donor States and the Beneficiary State The

National Focal Point, with the consent of the FMC,

may in the Memorandum of Understanding entrust the

operations of a programme or a specific allocation to

the FMO, inter-governmental organisations or Donor

State entities.

Amended in line with practice; the option of entrusting inter-governmental

organisations of Donor state entities has not been used under the current

FM.

Reference added to “a specific allocation”, to cover the Civil Society Fund.

3. In cases referred to in paragraphs 1 and 2, the

provisions of this Regulation do not apply. The

Programme Operator shall apply specific rules in this

regard, which shall to the extent possible follow the

provisions of this Regulation and in all cases ensure

implementation in line with the principles stated in

Article 1.3.

2. In cases referred to in paragraphs 1 and 2, the

provisions of this Regulation do not apply. The

Programme OperatorFMO shall apply specific rules in

this regard, which shall to the extent possible follow

the provisions of this Regulation and in all cases

ensure implementation in line with the values and

principles stated in Article 1.3.

4. When the FMO acts as a Programme Operator, the

implementation of the programme shall normally be

performed by a fund operator, appointed and

contracted by the FMO. The roles and responsibilities

of the FMO and the fund operator shall be governed

by an implementation agreement between the FMO

and the fund operator. The implementation agreement

shall contain provisions on reporting to the National

Focal Point.

3. In cases referred to in paragraph 1When the FMO

acts as a Programme Operator, the implementation of

the Pprogramme shall normally be performed by a

Ffund Ooperator, appointed and contracted by the

FMO. The roles and responsibilities of the FMO and

the Ffund Ooperator shall be governed by an

implementation agreement between the FMO and the

Ffund Ooperator. The implementation agreement shall

contain provisions on reporting to the National Focal

Point.

5. When the operation of a programme has been

entrusted to an inter-governmental organisation or a

Donor State entity, its roles and responsibilities shall

be governed by a programme implementation

agreement between the FMC and the Programme

Operator.

5. When the operation of a programme has been

entrusted to an inter-governmental organisation or a

Donor State entity, its roles and responsibilities shall

be governed by a programme implementation

agreement between the FMC and the Programme

Operator.

6. The funds for regranting within a programme

referred to in this article as well as the costs of the

4. The funds for implementing regranting within a

programme referred to in this Aarticle, including as

Chapter 6 Programmes

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 82

Current text New text (with track changes) Comments

Programme Operator and/or the fund operator shall be

covered by the financial contribution to the respective

Beneficiary State.

well as the costs of the Programme Operator and/or the

Ffund Ooperator, shall be covered by the financial

contribution to the respective Beneficiary State.

7. When a programme is being operated by the FMO,

an inter-governmental organisation or a Donor State

entity according to this article, the Beneficiary State

bears no responsibility for the implementation of the

programme, financially or otherwise, except as

provided for in paragraph 6.

5. When a programme is being operated by the FMO,

an inter-governmental organisation or a Donor State

entity according to this Aarticle, the Beneficiary State

bears no responsibility for the implementation of the

Pprogramme, financially or otherwise, except as

provided for in paragraph 46.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 83

Current text New text (with track changes) Comments

Chapter 7

Selection of projects

Chapter 7

Selection of projects

Article 7.1

Modes of selection

Article 7.1

Modes of selection

1. Projects shall be selected through calls for proposals

organised in accordance with this Chapter.

1. Projects shall be selected through calls for proposals

organised in accordance with this Chapter.

2. By way of derogation from paragraph 1, pre-defined

projects may be identified without a call for proposals.

Such projects shall be identified in accordance with

paragraph 2(b)(vi) of Article 2.5 and Article 6.5.

Information on such projects shall be provided in the

concept note in accordance with Article 6.5.

2. By way of derogation from paragraph 1, pre-defined

projects may be identified without a call for proposals.

Such projects shall be identified in accordance with

paragraph 2(b)(vi) of Article 2.5 and Article 6.5.

Information on such projects shall be provided in the

Concept Note in accordance with Article 6.5.

Article 7.2

Eligibility of Project Promoters and project

partners.

Article 7.2

Eligibility of Project Promoters and project

partners.

1. Any entity, public or private, commercial or non-

commercial and non-governmental organisations,

established as a legal person in the respective

Beneficiary State are considered eligible project

promoters. Where explicitly stipulated in the

programme agreement, international organisations or

bodies or agencies thereof, may be eligible project

promoters.

1. Any entity, public or private, commercial or non-

commercial and non-governmental organisations,

established as a legal person in the respective

Beneficiary State are considered eligible project

promoters. Where explicitly stipulated in the

Pprogramme Aagreement, international organisations

or bodies or agencies thereof, may be eligible project

promoters.

2. Any public or private entity, commercial or non-

commercial, as well as non-governmental

organisations established as a legal person either in the

Donor States, Beneficiary States or a country outside

the European Economic Area that has a common

border with the respective Beneficiary State, or any

international organisation or body or agency thereof,

actively involved in, and effectively contributing to,

the implementation of a project, are considered

eligible project partners.

2. Any public or private entity, commercial or non-

commercial, as well as non-governmental

organisations established as a legal person either in the

Donor States, Beneficiary States or a country outside

the European Economic Area that has a common

border with the respective Beneficiary State, or any

international organisation or body or agency thereof,

actively involved in, and effectively contributing to,

the implementation of a project, are considered

eligible project partners.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 84

Current text New text (with track changes) Comments

3. Natural persons who are legal residents of the Donor

States or of the respective Beneficiary State are

eligible project promoters and eligible project partners

under the programme areas “Education, Scholarships,

Apprenticeships and Youth Entrepreneurship” and

“Cultural Entrepreneurship, Cultural Heritage and

Cultural Cooperation”, and scholarship components

under any programme .

3. Natural persons who are legal residents of the Donor

States or of the respective Beneficiary State are

eligible project promoters and eligible project partners

under the programme areas “Education Training and

Youth Employment” and “Culture”Education,

Scholarships, Apprenticeships and Youth

Entrepreneurship” and “Cultural Entrepreneurship,

Cultural Heritage and Cultural Cooperation”, and scholarship mobility components under any

programme .

4. Taking into account the overall objectives of the

EEA Financial Mechanism 2014-2021 and of the

programme, and with the aim of ensuring targeted

implementation, limitations to the eligibility of Project

Promoters and project partners may, if approved by the

FMC, be explicitly stipulated in the programme

agreement.

4. Taking into account the overall objectives of the

EEA Financial Mechanism 2014-2021 and of the

programme, and with the aim of ensuring targeted

implementation, Any limitations to the eligibility of

Project Promoters and project partners shallmay, if

approved by the FMC, be explicitly stipulated in the

Pprogramme Aagreement.

Article 7.3

Calls for proposals

Article 7.3

Calls for proposals

1. Calls for proposals shall be organised by the

Programme Operator. Their content, form and

publication shall be in accordance with the programme

agreement and this Regulation.

1. Calls for proposals shall be organised by the

Programme Operator and developed in consultation

with the FMC and the Donor Programme

Partner(s)/IPO(s), where relevant. The FMC may

provide comments that shall be taken into account by

the National Focal Point and the Programme Operator.

The content, form and publication of the calls for

proposals shall be based on the Concept Note and be

in accordance with the Programme Agreement and this

Regulation. A call for proposals template shall be

provided by the FMC.

The text is amended to reflect the ability of the FMC (task delegated to the

FMO) to verify whether the calls are in line with the objective/approach

agreed in the Concept Note and with the minimum requirements referred to

in paragraph 2.

The role of the FMC/FMO includes making comments, but not approving

the calls.

2. Calls for proposals shall as a minimum comply with

the following:

2. Calls for proposals shall as a minimum comply with

the following:

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 85

Current text New text (with track changes) Comments

(a) they shall be widely publicised with a view to

reach all potential applicants. All appropriate

media, at national, regional and local levels, as

well as specialised publications and web based

tools, shall be used as relevant. Any limitation on

the publication shall be set out in the programme

agreement;

(b) they shall include a clear and reasonable deadline,

which shall be at least two months from the date

of the publication of the announcement, and an

address for submission. The announcement shall

specify the hour when the call expires, whether the

deadline refers to a post stamp or actual delivery

time to the office of the Programme Operator and

the permissible method(s) of delivery. The

announcement must specify whether one or more

copies of the application are required;

(c) they shall clearly specify the eligible Project

Promoters and partners and any restrictions,

limitations or exclusions that they may be subject

to;

(d) they shall contain detailed selection criteria as

well as a scoring chart;

(e) they shall clearly address what kind of activities

and expenditure are eligible, including any

restrictions to unit costs mentioned in Article 8.4;

(f) they shall provide a description of the selection

process and the decision-making structure;

(g) they shall provide a clear reference or a link to the

application form and user guide;

(h) they shall clearly state the total amount available

through the call, as well as the minimum and

(a) contain a clear description of their specific

objectives and expected results;

(a) they shall be widely publicised with a view to

reach all potential applicants. All appropriate

media, at national, regional and local levels, as

well as specialised publications and web based

tools, shall be used as relevant. Any limitation on

the publication shall be set out in the Programme

Agreement;

(b) they shall include a clear and reasonable deadline,

which shall be at least twothree months from the

date of the publication of the announcement or any

other deadline agreed in the Programme

Agreement, and an address for submission. The

announcement shall specify the timehour when

the call expires, whether the actions necessary to

meet the deadline refers to, a post stamp or actual

delivery time to the office of the Programme

Operator and the permissible method(s) of

delivery. The announcement must specify

whether one or more copies of the application are

required;

(c) they shall clearly specify the eligible Project

Promoters and partners and any restrictions,

limitations or exclusions that they may be subject

to;

(d) they shall contain detailed selection criteria as

well as a scoring chart;

(e) they shall clearly address what kind of activities

and expenditure are eligible, including any

The provision on publication is moved towards the end of the list.

The proposal is to extend the (standard) deadline to three months to provide

more time for applicants to prepare the applications and to establish

partnerships, in particular donor partner partnerships which may be more

challenging and complex to prepare.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 86

Current text New text (with track changes) Comments

maximum amount of each project grant applied

for;

(i) they shall contain provisions on the payment

model;

(j) they shall clearly state the co-financing

requirements;

(k) they shall require the disclosure of any consultant

involved in the preparation of the project

application;

(l) they shall provide clear references to further

information, including a reference to this

Regulation and relevant guidelines adopted by the

FMC as well as other documentation prepared by

the Programme Operator that is relevant to the

call; and

(m) they shall provide contact information for queries

and the timeframe for answering such queries.

limitationsrestrictions to unit costs mentioned in

Article 8.4;

(f) they shall provide a description of the selection

process and the decision-making structure;

(g) they shall provide a clear reference or a link to the

application form and user guide;

(h) they shall clearly state the total amount available

through the call, as well as the minimum and

maximum amount of each project grant applied

for;

(i) they shall contain provisions on the payment

model;

(j) they shall clearly state the co-financing

requirements;

(k) they shall require the disclosure of any consultant

involved in the preparation of the project

application;

(l) they shall provide clear references to further

information, including a reference to this

Regulation and relevant guidelines adopted by the

FMC as well as other documentation prepared by

the Programme Operator that is relevant to the

call; and

(m) they shall provide contact information for queries

and the timeframe for answering such queries; and

(l)(n) be widely publicised with a view to reach all

potential applicants. All appropriate media at

national, regional and local levels, as well as

specialised publications and web-based tools,

Moved from above (point a).

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 87

Current text New text (with track changes) Comments

shall be used as relevant. Any limitation on the

publication shall be set out in the Programme

Agreement.

3. The call shall be published on the website of the

Programme Operator in the national language(s) and

in English.

3. The call shall be published on the website of the

Programme Operator in the national language(s) and

in English and notified to the FMC.

4. The National Focal Point shall warrant that the call

for proposals fully complies with the legal framework

of the EEA Financial Mechanism 2014-2021 as

defined in Article 1.5 of the Regulation.

4. The National Focal Point shall warrant that the call

for proposals fully complies with the legal framework

of the EEA Financial Mechanism 2014-20212021-

2028 as defined in Article 1.5 of the Regulation.

5. The FMC shall be informed of all calls for proposals

at least two weeks in advance of their announcement,

and, at the same time, be provided with an English

translation of the text of each call.

5. The FMC shall be informedconsulted of all calls for

proposals at least twothree weeks in advance of their

planned announcement, and, at the same time, be

provided with an English translation of the text of each

call.

This paragraph is deleted in light of what is added in paragraph 1.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 88

Current text New text (with track changes) Comments

Article 7.4

Selection Committee

More detailed provisions on the selection process are included in this and

the following articles. For calls for smaller projects, a simplified procedure

based on compliance with general principles would apply (see draft Article

7.7).

1. The Programme Operator shall establish a Selection

Committee that shall recommend the projects to be

funded within the programme. The Selection

Committee shall consist of at least three persons

possessing the relevant expertise. At least one of them

shall be a Selection Committee member external to the

Programme Operator, Donor Programme Partner(s)

and/or IPO(s).

2. Unless otherwise specified in the Programme

Agreement, the Donor Programme Partner(s) and/or

the IPO(s) shall be members of the Selection

Committee. The FMC and the National Focal Point

shall be invited to participate in the Selection

Committee as observers.

The text reflects a more important role for DPPs/IPOs. Members is

understood as voting members. The main rule would be for DPPs/IPOs to

be voting members in the Selection Committee. The “opt-out’ clause is there

to allow DPPs/IPOs to avoid taking up this responsibility if they don’t want

to.

3. The Programme Operator shall provide

interpretation assistance during the selection process,

when necessary. The Selection Committee shall keep

minutes of its meetings. The FMC shall be provided

with the minutes in English no later than two weeks

after the meeting.

The FMC may obtain the minutes of CC meetings upon request, on the basis

of Article 7.6.7.

Article 7.5

General principles and rules for the selection of

projects

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 89

Current text New text (with track changes) Comments

1. The Programme Operator shall be responsible for

project selection and the award of grants. The

principles of good governance, transparency, equality,

efficiency and zero tolerance towards corruption shall

be applied.

Text based on the Article 7.4.1. of the current Regulation.

Evaluation has been replaced by selection, as evaluation has a specific

(other) meaning within the context of the Grants.

2. The Programme Operator shall take every

reasonable measure to prevent a conflict of interest

situation from occurring in the context of project

selection. If a conflict of interest situation nevertheless

occurs, the Programme Operator shall take all the

necessary measures to prevent that such a situation

affects the integrity of the selection process.

Moved from current Art.7.5.2. Regulation FM 14-21. A definition of the

term “conflict of interest” is included in Article 1.6(d).

3. Only applicants that respect the values and

principles referred to in paragraph 1 of Article 1.3

shall be eligible project promoters and partners.

4. Selection procedures shall ensure that the persons

carrying out the initial assessment of project

applications are not responsible for the final decision

on the selection of projects to be funded.

5. The Programme Agreement may include specific

provisions with respect to the selection process.

6. The Programme Operator shall document

assessment and decisions made during the selection

procedure and store all documents related to the

selection procedures for at least three years following

the approval of the final programme report by the

FMC.

Article 7.6.

Selection procedures

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 90

Current text New text (with track changes) Comments

1. The Programme Operator shall review the

applications against the administrative and eligibility

criteria, including any exclusion criteria. The

applicants whose applications are rejected at this stage

shall be informed and given a reasonable time to

appeal that decision.

2. Each application that meets the administrative and

eligibility criteria shall be reviewed against the

selection criteria by at least two impartial experts

appointed by the Programme Operator. At least one of

the experts shall be independent of the Programme

Operator and the Selection Committee. Costs related

to experts shall be covered from the management cost

of the Programme Operator.

3. The experts shall separately score the project

according to the selection criteria published with the

call for proposals. For the purposes of ranking the

projects, the average of the scores awarded by the

experts shall be used. The Programme Operator shall

define the procedure to be followed in case of

significant divergence in the scores given by the two

experts.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 91

Current text New text (with track changes) Comments

4. The Programme Operator shall provide the

Selection Committee members and observers with the

list of project applications ranked in accordance with

paragraph 3 – and the summary of the experts’

assessment, in English.

The Selection Committee shall review the ranked list

of project applications. The Selection Committee

shall, where applicable, consult the Donor Programme

Partner(s) and take into account their

recommendations regarding any donor project

partners included in the project applications.

The Selection Committee may modify the ranking of

the projects in justified cases. The justification for the

modifications shall be detailed in the minutes of the

meeting of the Selection Committee. The Selection

Committee shall submit the approved list of

recommended projects to the Programme Operator.

New: The PO shall not just provide the list, but also a summary of the

experts’ assessment to the Selection Committee.

5. The Programme Operator shall verify that the

selection process has been conducted in accordance

with the Regulation and that the recommendations

from the Selection Committee comply with the rules

and objectives of the programme. Following such

verification the Programme Operator shall, based on

the recommendations of the Selection Committee,

make a decision on which projects shall be supported.

If the Programme Operator modifies the

recommendations of the Selection Committee, it shall

inform the Selection Committee, the FMC, the NFP

and the applicants affected and provide them with a

justification.

Based on current 7.4.2., on the previous Art.6.5.6. of the Regulation FM 09-

14 and on Best practice on project selection procedures.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 92

Current text New text (with track changes) Comments

6. The Programme Operator shall notify the applicants

about the results of the selection process within a

reasonable time and publicise the results.

7. The Programme Operator shall provide the FMC

with the list of selected projects no later than two

weeks after the decision on the grant awards of grants.

The FMC shall be provided with any relevant

documents in English upon request.

Article 7.7

Selection procedure for calls for proposals with a

maximum grant amount per project of € 25,000

1. For calls for proposals with a maximum grant

amount per project of € 25,000, the Programme

Operator may apply a simplified selection procedure

that complies with the principles described in Article

7.5.

2. The Programme Operator shall, where applicable,

consult the Donor Programme Partner(s) and take

into account their recommendations regarding any

Donor project partners included in project

applications.

Article 7.8

Award of additional grants to already approved

projects

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 93

Current text New text (with track changes) Comments

1. Decisions to award additional grants to already

approved projects shall be taken by the Programme

Operator. Any such decision shall be taken in line with

the principles described in Article 7.5.

2. The Programme Operator shall apply transparent

and objective criteria when making such decisions and

shall communicate these criteria to project promoters

in advance, together with a clear deadline for

application.

Article 7.4

Project evaluation and award of grants

Article 7.4 Project evaluation assessment and award of

grants

1. The Programme Operator shall be responsible for

project evaluation and the award of grants. The

principles of good governance, transparency, equality,

efficiency and zero tolerance towards corruption shall

be applied.

1. The Programme Operator shall be responsible for

project evaluation and the award of grants. The

principles of good governance, transparency, equality,

efficiency and zero tolerance towards corruption shall

be applied.

Moved to new Art. 7.5.1.

2. The Programme Operator shall verify that the

selection process has been conducted in accordance

with the Regulation and that grant award decisions

comply with the rules and objectives of the

Programme. Following such verification, the

Programme Operator shall make a decision on which

projects shall be supported.

2. The Programme Operator shall verify that the

selection process has been conducted in accordance

with the Regulation and that grant award decisions

comply with the rules and objectives of the

Programme. Following such verification, the

Programme Operator shall make a decision on which

projects shall be supported.

Moved to new Art. 7.6.5.

3. The Donor Programme Partner(s) and/or the IPO(s),

as applicable, shall be invited to participate in the

selection process. The FMC and the National Focal

Point shall be invited to participate in the selection

procedure as observers. The FMC and the programme

partner(s) shall be provided with the relevant

documents in English.

3. The Donor Programme Partner(s) and/or the IPO(s),

as applicable, shall be invited to participate in the

selection process. The FMC and the National Focal

Point shall be invited to participate in the selection

procedure as observers. The FMC and the programme

partner(s) shall be provided with the relevant

documents in English.

Moved to new Art. 7.4.2.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 94

Current text New text (with track changes) Comments

4. The Programme Operator shall provide

interpretation assistance during the selection process

when necessary.

4. The Programme Operator shall provide

interpretation assistance during the selection process

when necessary.

Moved to new Art. 7.4.3.

5. In calls for proposals dedicated exclusively to donor

partnership projects, the selection procedures shall be

agreed with the Donor Programme Partner. The

working language, as well as the language of project

applications and other relevant documents, shall be

English.

5. In calls for proposals dedicated exclusively to donor

partnership projects, the selection procedures shall be

agreed with the Donor Programme Partner. The

working language, as well as the language of project

applications and other relevant documents, shall be

English.

The selection procedures are described in the Articles above.

6. The Programme Operator shall provide the FMC

with the list of selected projects no later than two

weeks after the decision on the award of grants. The

FMC shall be provided with any relevant documents

in English upon request.

6. The Programme Operator shall provide the FMC

with the list of selected projects no later than two

weeks after the decision on the award of grants. The

FMC shall be provided with any relevant documents

in English upon request.

Moved to new Art. 7.6.7.

7. The programme agreement may include specific

provisions with respect to the selection process.

7. The programme agreement may include specific

provisions with respect to the selection process.

Included in Art.7.5.5.

8. This Article shall apply mutatis mutandis to

decisions to award additional funds to already

approved projects.

8. This Article shall apply mutatis mutandis to

decisions to award additional funds to already

approved projects.

Moved to new Art. 7.8 + clarification of the principles that apply to this

procedure.

Article 7.5

Conflict of interest

Article 7.5

Conflict of interest

1. A conflict of interest situation is deemed to be

present when a person involved in the selection

process has direct or indirect interests that are or

appear to be incompatible with the impartial and/or

objective exercise of the functions related to the

selection process. Such interests may be related to

economic interests, political or national affinities,

family or emotional ties, other shared interests with the

applicant or its partner, or any other interests liable to

influence the impartial and objective performance of

the person involved in the selection of projects.

1. In the context of project selection, Aa conflict of

interest situation is deemed to be present when a

person involved in the selection process has direct or

indirect interests that are or appear to be incompatible

with the impartial and/or objective exercise of the

functions related to the selection process. Such

interests may be related to economic interests, political

or national affinities, family or emotional ties, other

shared interests with the applicant or its partner, or any

other interests liable to influence the impartial and

objective performance of the person involved in the

selection of projects.

The current definition, which is limited to the selection of projects, is

replaced by a general definition of the term “conflict of interest” in Article

1.6. Definitions, which is not limited to the selection process. Therefore, it

is proposed to remove the current Article 7.5.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 95

Current text New text (with track changes) Comments

2. The Programme Operator shall take every

reasonable measure to prevent a conflict of interest

situation from occurring. If a conflict of interest

situation nevertheless occurs, the Programme

Operator shall take all the necessary measures to

prevent that such a situation affects the integrity of the

selection process.

2. The Programme Operator shall take every

reasonable measure to prevent a conflict of interest

situation from occurring. If a conflict of interest

situation nevertheless occurs, the Programme

Operator shall take all the necessary measures to

prevent that such a situation affects the integrity of the

selection process.

Moved to Art. 7.5.2.

Article 7.6

Project contract

Article 7.9

Project contract

1. For each approved project a project contract shall be

concluded between the Programme Operator and the

Project Promoter.

1. For each approved project a project contract shall be

concluded between the Programme Operator and the

Project Promoter.

2. In cases where a project contract cannot, due to

provisions in the national legislation, be made between

the Programme Operator and the Project Promoter, the

Beneficiary State may instead issue a legislative or

administrative act of similar effect and content.

2. In cases where a project contract cannot, due to

provisions in the national legislation, be made between

the Programme Operator and the Project Promoter, the

Beneficiary State may instead issue a legislative or

administrative act of similar effect and content.

3. The project contract sets out the terms and

conditions of grant assistance as well as the roles and

responsibilities of the parties. It shall in particular

include provisions that ensure that the Project

Promoter undertakes to comply fully with the

provisions of the legal framework of the EEA

Financial Mechanism 2014-2021 referred to in Article

1.5 that are relevant for the implementation of the

project, including any obligation that is valid after the

project has been completed. The project contract shall

contain an explicit reference to the programme

agreement and this Regulation and, as a minimum,

provisions on the following:

(a) obligations regarding reporting that enables the

Programme Operator to comply with its reporting

obligations to the FMC and the National Focal

Point;

3. The project contract sets out the terms and

conditions of grant assistance as well as the roles and

responsibilities of the parties. It shall in particular

include provisions that ensure that the Project

Promoter undertakes to comply fully with the

provisions of the legal framework of the EEA

Financial Mechanism 2014-20212021-2028 referred

to in Article 1.5 that are relevant for the

implementation of the project, including any

obligation that is valid after the project has been

completed. The project contract shall contain an

explicit reference to the Programme Agreement and

this Regulation and, as a minimum, provisions on the

following:

(a) obligations regarding reporting that enables the

Programme Operator to comply with its reporting

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 96

Current text New text (with track changes) Comments

(b) the maximum amount of the project grant and the

maximum project grant rate;

(c) the eligibility of expenditures and requirements

regarding the submission of proof of expenditure;

(d) the method of calculating indirect costs and their

maximum amount;

(e) the first and final dates of eligibility of

expenditures;

(f) modifications of the project;

(g) ensuring that the access requested in relation to

monitoring, audits and evaluations is provided

without delay;

(h) ensuring that obligations regarding information

and communication are complied with;

(i) the right of the Programme Operator to suspend

payments and request reimbursement from the

Project Promoter in case decision on such actions

is taken by the FMC, Programme Operator or the

National Focal Point;

(j) resolution of disputes and jurisdiction;

(k) a detailed budget, which may allow for up to 5%

contingency; and

(l) a reference to partnership agreements or letters of

intent, if relevant.

obligations to the FMC and the National Focal

Point;

(b) the maximum amount of the project grant and the

maximum project grant rate;

(c) the eligibility of expenditures and requirements

regarding the submission of proof of expenditure;

(d) the method of calculating indirect costs and their

maximum amount;

(e) the first and final dates of eligibility of

expenditures;

(f) modifications of the project;

(g) ensuring that the access requested in relation to

monitoring, audits and evaluations is provided

without delay;

(h) ensuring that obligations regarding information

and communication are complied with;

(i) the right of the Programme Operator to suspend

payments and request reimbursement from the

Project Promoter in case decision on such actions

is taken by the FMC, Programme Operator or the

National Focal Point;

(j) resolution of disputes and jurisdiction;

(k) a detailed budget, which may allow for up to 5%

contingency and which foresees flexible rules for

shifts between budget headings; and

(l) a reference to partnership agreements or letters of

intent, if relevant.

4. The project contract shall include provisions that

ensure that project partners are informed sufficiently

4. The project contract shall include provisions that

ensure that project partners are informed sufficiently

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 97

Current text New text (with track changes) Comments

in advance of modifications to the project that affect

them.

in advance of all provisions of the project contract that

are relevant for them and of all modifications to the

project that affect them.

Text proposal for highlighting the need to include rules in the project

contract on informing the partners about the rules relevant for them.

5. The obligations of the Project Promoter under the

project contract shall be valid and enforceable under

the applicable national law of the Beneficiary State. In

case of any inconsistency between the project contract

and the legal framework of the EEA Financial

Mechanism 2014-2021 as defined in Article 1.5 of this

Regulation, the latter shall prevail.

5. The obligations of the Project Promoter under the

project contract shall be valid and enforceable under

the applicable national law of the Beneficiary State. In

case of any inconsistency between the project contract

and the legal framework of the EEA Financial

Mechanism 2014-20212021-2028 as defined in

Article 1.5 of this Regulation, the latter shall prevail.

Article 7.7

Project partners and partnership agreements

Article 7.10

Project partners and partnership agreements

1. A project may be implemented in partnership with

project partners as defined in point (w) of Article 1.6.

If a project is implemented in such a partnership, the

Project Promoter shall sign a partnership agreement

with the project partners.

1. A project may be implemented in partnership with

project partners as defined in point (yw) of Article 1.6.

If a project is implemented in such a partnership, the

Project Promoter shall sign a partnership agreement

with the project partners.

2. The partnership agreement shall contain the

following:

(a) provisions on the roles and responsibilities of

the parties;

(b) provisions on the financial arrangements

between the parties, including, but not

limited to, which expenditure the project

partners can get reimbursed from the project

budget;

(c) provisions on the method of calculating

indirect costs and their maximum amount;

(d) currency exchange rules for such expenditure

and its reimbursement;

(e) provisions on audits on the project partners;

2. The Partnership Agreement shall contain the

following:

(a) provisions on the roles and responsibilities of

the parties;

(b) provisions on the financial arrangements

between the parties, including, but not

limited to, financial reporting obligations,

means for proof of expenditure, payment

flows and which expenditure the project

partners can get reimbursed from the project

budget;

(c) provisions on the method of calculating

indirect costs and their maximum amount;

Clarification of important aspects that need to be in the partnership

agreement.

Chapter 7 Selection of projects

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 98

Current text New text (with track changes) Comments

(f) a detailed budget; and

(g) provisions on dispute resolution.

(d) currency exchange rules for such expenditure

and its reimbursement;

(e) provisions on audits on the project partners;

(f) a detailed budget, which may allow for 5%

contingency and which foresees flexible rules

for shifts between budget headings; and

(g) provisions on dispute resolution.

Indicate that flexible rules for shifts within budget headings would need to

be set (aligned with the provision applicable to project contracts – see above

7.9.3(k)).

4. The partnership agreement shall be in English if one

of the parties to the agreement is an entity from the

Donor States.

4. If one of the parties to the agreement is an entity

from the Donor States, tThe partnership agreement

shall be in English if one of the parties to the

agreement is an entity from the Donor States . and

shall be based on a template provided by the FMC.

The use of the template for partnerships with Doner project partners shall

become mandatory in order to avoid issues with unclear agreements signed

by Donor project partners. Although the template shall form the basis for

the agreement, the provisions may still be amended and/or supplemented in

view of the arrangements agreed between the parties.

5. The eligibility of expenditures incurred by a project

partner is subject to the same limitations as would

apply if the expenditures were incurred by the Project

Promoter.

5. The eligibility of expenditures incurred by a project

partner is subject to the same ruleslimitations as would

apply if the expenditures were incurred by the Project

Promoter.

6. The creation and implementation of the relationship

between the Project Promoter and the project partner

shall comply with the applicable national and

European Union law on public procurement as well as

Article 8.15 of this Regulation.

6. The creation and implementation of the relationship

between the Project Promoter and the project partner

shall comply with the applicable national and

European Union law on public procurement as well as

Article 8.15 of this Regulation.

The proposal is to delete this article because it creates confusion (partners

are not service providers), and there is a specific article in the Regulation on

compliance with European and national procurement rules (Article 8.15).

7. A draft partnership agreement or letter of intent

shall be submitted to the Programme Operator before

the signing of the project contract. The Programme

Operator shall verify that the partnership agreement

complies with this article.

6. A draft partnership agreement or letter of intent

shall be submitted to the Programme Operator before

the signing of the project contract. The Programme

Operator shall verify that the partnership agreement

complies with this Article.

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 99

Current text New text (with track changes) Comments

Chapter 8

Eligibility of expenditures

Chapter 8

Eligibility of expenditures

Article 8.1

Eligible expenditures of a programme

Article 8.1

Eligible expenditures of a programme

Eligible expenditures of a programme are:

(a) management

costs of the Programme Operator in accordance with

Article 8.10;

(b) payments to projects within the programme in

accordance with this Regulation, the programme

agreement and the project contract;

Eligible expenditures of a programme are:

(a) management costs of the Programme Operator in

accordance with Article 8.10;

(b) payments to projects within the programme

in accordance with this Regulation, the pProgramme

aAgreement and the project contracts; and

(c) payments from the funds for bilateral relations

in accordance with Article 4.10

Bilateral funds are included as an eligible expenditure of a programme as

bilateral funds at programme level will be part of the programme budget.

Article 8.2

General principles on the eligibility of

expenditures

Article 8.2

General principles on the eligibility of

expenditures

1. The principles set forth in this article shall apply

mutatis mutandis to all eligible expenditures unless

otherwise explicitly stated in this Regulation.

1. The principles set forth in this article shall apply

mutatis mutandis to all eligible expenditures unless

otherwise explicitly stated in this Regulation.

This is moved to the end of this Article.

2. Eligible expenditures of projects are those actually

incurred within the project, which meet the following

criteria:

(a) they are incurred between the first and final dates

of eligibility of a project as specified in the project

contract;

(b) they are connected with the subject of the project

contract and they are indicated in the detailed

budget of the project;

12. Eligible expenditures of projects are those actually

incurred within the projects as well as expenditure

covered by simplified cost options (unit costs, flat-

rates, lump sums).

The expenditure which shall meet the following

criteria:

(a) for costs reimbursed pursuant to point (a) of

Article 8.3.1, they are actually incurred between

the first and final dates of eligibility of a project

as specified in the project contract; for costs

reimbursed pursuant to points (b) and (c) of

Paragraph 1 has been redrafted to cater for the case of unit costs and lump

sums. The wording is aligned with provisions in the Common Provisions

Regulation (CPR), adjusted to the context of the EEA/Norway Grants.

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 100

Current text New text (with track changes) Comments

(c) they are proportionate and necessary for the

implementation of the project;

(d) they must be used for the sole purpose of

achieving the objective(s) of the project and its

expected outcome(s), in a manner consistent with

the principles of economy, efficiency and

effectiveness;

(e) they are identifiable and verifiable, in particular

through being recorded in the accounting records

of the Project Promoter and/or project partner and

determined according to the applicable

accounting standards of the country where the

Project Promoter and/or project partner is

established and according to generally accepted

accounting principles; and

(f) they comply with the requirements of applicable

tax and social legislation.

Article 8.3.1, the actions constituting the basis for

reimbursement are carried out between the first

and final dates of eligibility of a project as

specified in the project contract;

(b) they are connected with the subject of the project

contract and they are indicated in the detailed

budget of the project;

(c) they are proportionate and necessary for the

implementation of the project;

(d) they must be used for the sole purpose of

achieving the objective(s) of the project and its

expected outcome(s), in a manner consistent with

the principles of economy, efficiency and

effectiveness;

(e) they are identifiable and verifiable, in particular

through being recorded in the accounting records

of the Project Promoter and/or project partner and

determined according to the applicable

accounting standards of the country where the

Project Promoter and/or project partner is

established and according to generally accepted

accounting principles; and

(f) they comply with the requirements of applicable

tax and social legislation.

3. Expenditures are considered to have been incurred

when the cost has been invoiced, paid and the subject

matter delivered (in case of goods) or performed (in

case of services and works). Exceptionally, costs in

respect of which an invoice has been issued in the final

month of eligibility are also deemed to be incurred

within the dates of eligibility if the costs are paid

within 30 days of the final date for eligibility. By way

of additional exception, Programme Operators may

allow for project expenditure to be considered incurred

23. Expenditures reimbursed pursuant to point (a) of

Article 8.3.1 are considered to have been incurred

when the cost has been invoiced, paid and the subject

matter delivered (in case of goods) or performed (in

case of services and works). Exceptionally, costs in

respect of which an invoice has been issued in the final

month of eligibility are also deemed to be incurred

within the dates of eligibility if the costs are paid by

the end of the month following within 30 days of the

final date for eligibility. By way of additional

The deadline for the payment of costs when an invoice has been issued in

the final month of eligibility – currently phrased as “within 30 days” – has

been replaced by “the end of the month” for clarity purposes.

The additional exception which was introduced in the Regulation in

February 2023 was removed as the need for it was in response to specific

circumstances linked to the end of the 2014-2021 Financial Mechanism.

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 101

Current text New text (with track changes) Comments

within the dates of eligibility if the cost has been

invoiced and paid by 30 April 2024, and the subject

matter has been delivered (in case of goods) or

performed (in case of services and works) by a later

date, but no later than 31 December 2024. Overheads

and depreciation of equipment are considered to have

been incurred when they are recorded on the accounts

of the Project Promoter and/or project partner.

exception, Programme Operators may allow for

project expenditure to be considered incurred within

the dates of eligibility if the cost has been invoiced and

paid by 30 April 2024, and the subject matter has been

delivered (in case of goods) or performed (in case of

services and works) by a later date, but no later than

31 December 2024. Overheads and depreciation of

equipment are considered to have been incurred when

they are recorded on the accounts of the Project

Promoter and/or project partner.

4. Where new or second hand equipment is purchased,

only the portion of the depreciation corresponding to

the duration of the project and the rate of actual use for

the purposes of the project may be considered eligible

expenditure.

34. Where new or second-hand equipment is

purchased, only the portion of the depreciation

corresponding to the duration of the project and the

rate of actual use for the purposes of the project may

be considered eligible expenditure.

5. The Project Promoter’s internal accounting and

auditing procedures must permit direct reconciliation

of the expenditures and revenue declared in respect of

the project with the corresponding accounting

statements and supporting documents.

45. The Project Promoter’s and project partners’

internal accounting and auditing procedures must

permit direct reconciliation of the expenditures and

revenue declared in respect of the project with the

corresponding accounting statements and supporting

documents.

Project partners are added to not make the Project Promoter responsible for

all the documentation.

6. In case of projects implemented by an international

organisation or body or an agency thereof, the

programme agreement may include specific

provisions with regard to the eligibility of expenditure.

56. In case of projects implemented by an international

organisation or body or an agency thereof, the

programme agreement may include specific

provisions with regard to the eligibility of expenditure.

6. The principles set forth in this article shall apply

mutatis mutandis to all eligible expenditures unless

otherwise explicitly stated in this Regulation.

Article 8.3

Forms of eligible expenditures

1. Grants provided by Programme Operators to

beneficiaries may take any of the following forms:

Simplified cost options (SCOs), namely unit costs, lump sums and flat-rates,

have been included as options for calculating eligible expenditure.

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 102

Current text New text (with track changes) Comments

(a) reimbursement of eligible costs actually

incurred by a Project Promoter;

(b) unit costs;

(c) lump sums;

(d) flat-rate financing;

(e) a combination of the forms referred to in points

(a) to (d), provided that each form covers

different categories of costs.

This Article is aligned with the EU Common Provisions Regulation for the

programming period 2021-2027.

2. The amounts for the forms of grants referred to

under points (b), (c) and (d) of paragraph 1, shall be

established ex ante, in one of the following ways:

(a) flat rates and specific methods established by or

on the basis of this Regulation or sector specific

articles and guidelines;

(b) in accordance with the rules for application of

corresponding unit costs, lump sums and flat

rates applied under schemes for grants funded

entirely by the Beneficiary State, or the Donor

State in the case of donor project partners, for a

similar type of project;

(c) in accordance with the rules for application of

corresponding unit costs, lump sums and flat

rates applicable in European Union policies for

a similar type of project;

(d) a draft budget established on a case-by-case

basis and agreed ex ante by the Programme

Operator, where the total cost of the project

does not exceed EUR 200,000; or

(e) a fair, equitable and verifiable calculation

method, verified by the Audit Authority and

based on:

(i) statistical data, other objective information

or an expert judgement;

(ii) the verified historical data of individual

beneficiaries;

(iii) the application of the usual cost accounting

practices of individual beneficiaries.

This paragraph lists the options for the Beneficiary States to calculate a

simplified cost option.

The methodology for options (a) to (c) is ‘ready-made’, as these are already

identified in the Grants Regulation or guidelines (point (a)), developed by

the Beneficiary State or Donor States at the national level (point (b)) or

developed by the European Commission (point (c)). These are, therefore,

considered as simple to use, requiring least effort and capacity from the

Beneficiary States to apply them. Ex ante assessment/verification of these

methodologies is not required, only ex post regarding their correct

implementation.

Case (d) on the draft budget method allows applicants to submit a budget

based on real costs and other SCOs on the basis of which a new SCO can be

established. The Programme Operator would then assess each budget on a

case-by-case basis to determine whether the costs contained therein are

realistic and sufficiently deliver the desired results. The PO would then

transform the budget into a SCO. This could, for example, be done by

consolidating the activities of the project into milestones and ringfencing

the related costs into milestones specific lumpsums. The PO would then

make payments when milestones would be reached.

Case (e) refers to programme-specific SCOs that give the POs freedom to

design SCOs that are best suited to their programme. Programme-specific

SCOs are established using the FEV method (fair, equitable, and verifiable).

It needs to be ensured that the SCOs are based on reliable data and based on

objective calculations, with proper guidance documents and manuals to

support their use. In this case, the ex-ante assessment by the Audit Authority

is made mandatory to ensure the correct establishment of SCOs.

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 103

Current text New text (with track changes) Comments

3. The use of flat rates, unit costs and lump sums, their

amount and the way they are established shall be

determined in the project contract. The use of flat

rates, unit costs and lump sums, their amount and the

way they are calculated for a project partner shall also

be stipulated in the partnership agreement between the

Project Promoter and the project partner.

4. In exceptional and duly justified cases, the

Programme Operator may suggest to exclude certain

forms of grants listed in paragraph 1. Such deviations,

if approved by the FMC, shall be explicitly stipulated

in the Programme Agreement.

This new paragraph allows that the Programme Agreement limits the

available forms of grants.

Article 8.3

Eligible direct expenditures in a project

Article 8.4

Eligible direct expenditures in a project

Reference to project is removed from the title as this Article shall apply to

all expenditure (projects, including bilateral initiatives, technical

assistance, management costs) except in particular cases explicitly stated

therein.

1. The eligible direct expenditures for a project are

those expenditures which are identified by the Project

Promoter and/or the project partner, in accordance

with their accounting principles and usual internal

rules, as specific expenditures directly linked to the

implementation of the project and which can therefore

be booked to it directly. The following direct

expenditures are eligible provided that they satisfy the

criteria set out in Article 8.2:

(a) the cost of staff assigned to the project,

comprising actual salaries plus social security

charges and other statutory costs included in the

remuneration, provided that this corresponds to

the Project Promoter’s and project partner’s

usual policy on remuneration. The corresponding

salary costs of staff of national administrations

are eligible to the extent that they relate to the

1. The eligible direct expenditures for a project are

those expenditures which are identified by the Project

Promoter and/or the project partner, in accordance

with their accounting principles and usual internal

rules, as specific expenditures directly linked to the

implementation of the project, and which can therefore

be booked to it directly. The following direct

expenditures are eligible provided that they satisfy the

criteria set out in Article 8.2:

(a) the cost of staff assigned to the project,

comprising actual salaries plus social security

charges and other statutory costs included in the

remuneration, provided that this corresponds to

the Project Promoter’s and project partner’s

usual policy on remuneration. The

corresponding salary costs of staff of national

administrations are eligible to the extent that

Eligibility of expenditure related to travel and subsistence allowances has

been changed to cover not only staff but any participant in a project.

After inclusion in this chapter of all forms of SCOs, specification on the use

of lump sums in point (b) is removed as it is no longer needed.

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 104

Current text New text (with track changes) Comments

cost of activities which the relevant public

authority would not carry out if the project

concerned were not undertaken;

(b) travel and subsistence allowances for staff taking

part in the project. Having regard to the principle

of proportionality, travel costs, including

subsistence allowance, may be calculated as a

lump sum, on the basis of defined rules approved

by the Programme Operator;

(c) cost of new or second hand equipment. In case

the Programme Operator determines that the

equipment is an integral and necessary

component for achieving the outcomes of the

project, the entire purchase price of that

equipment may, by way of exception from the

rule contained in paragraph 4 of Article 8.2, be

eligible;

(d) purchase of land and real estate under the

conditions set in Article 8.6;

(e) costs of consumables and supplies, provided that

they are identifiable and assigned to the project;

(f) costs entailed by other contracts awarded by a

Project Promoter for the purposes of carrying out

the project, provided that the awarding complies

with the applicable rules on public procurement

and this Regulation; and

(g) costs arising directly from requirements imposed

by the project contract for each project.

they relate to the cost of activities which the

relevant public authority would not carry out if

the project concerned were not undertaken;

(b) travel and subsistence allowances for staff

participants taking part in the project,. provided

that this corresponds to the usual policy of the

Project Promoter and project partner on travel

allowances; Having regard to the principle of

proportionality, travel costs, including

subsistence allowance, may be calculated as a

lump sum, on the basis of defined rules approved

by the Programme Operator;

(c) cost of new or second-hand equipment. In case

the Programme Operator determines that the

equipment is an integral and necessary

component for achieving the outcomes of the

project, the entire purchase price of that

equipment may, by way of exception from the

rule contained in Article 8.2.4, be eligible.; This

exception is not applicable to the funds for

bilateral relations, programme management costs

and technical assistance;

(d) purchase of land and real estate under the

conditions set in Article 8.8, except for the funds

for bilateral relations, programme management

costs and technical assistance 6;

(e) costs of consumables and supplies, provided that

they are identifiable and assigned to the project;

(f) costs entailed by other contracts awarded by a

Project Promoter for the purposes of carrying out

the project, provided that the awarding complies

Chapter 8 Eligibility of expenditures

EEA FM 21-28 Regulation – Beneficiary State consultation, p. 105

Current text New text (with track changes) Comments

with the applicable rules on public procurement

and this Regulation; and

(g) costs arising directly from requirements imposed

by the project contract for each project.

2. Where the entire purchase price of equipment is

eligible in accordance with point (c) of paragraph 1,

the Programme Operator shall ensure that the Project

Promoter:

(a) keeps the equipment in its ownership for a period

of at least five years following the completion of

the project and continues to use that equipment

for the benefit of the overall objectives of the

project for the same period;

(b) keeps the equipment properly insured against

losses such as fire, theft or other normally

insurable incidents both during project

implementation and for at least five years

following the completion of the project; and

(c) sets aside appropriate resources for the

maintenance of the equipment for at least five

years following the completion of the project.

The specific means for the implementation of this

obligation shall be specified in the project contract.

The Programme Operator may release any Project

Promoter from the above obligations with respect to

any specifically identified equipment where the

Programme Operator is satisfied that, having regard to

all relevant circumstances, continued use of that

equipment for the overall objectives of the project

would serve no useful economic purpose.

2. Where the entire purchase price of equipment is

eligible in accordance with point (c) of paragraph 1,

the Programme Operator shall ensure that the Project

Promoter:

(a) keeps the equipment in its ownership for a period

of at least five years following the completion of

the project and continues to use that equipment

for the benefit of the overall objectives of the

project for the same period;

(b) where possible, keeps the equipment properly

insured against losses such as fire, theft or other

normally insurable incidents both during project

implementation and for at least five years

following the completion of the project; and

(c) sets aside appropriate resources for the

maintenance of the equipment for at least five

years following the completion of the project.

The specific means for the implementation of this

obligation shall be specified in the project contract.