The Agency underlined that the next ASR exercise will be very important to gain necessary information concerning information about potential IP delays. An exceptional scenario could be the prolongation of the Action should many IPPs report major delays by requesting an SGA amendment to INEA. However, IPPs should not carry-out the Action under that assumption, and should note that, in any case, the maximum grant amount will not be increased.
IPPs should also note that it is not possible to shift an IP from one IP SGA to another SGA (even between Clusters).
- In this respect, we would like to particularly draw your attention to the following provisions of the FPA:
Pursuant to Article II.3.2 of the FPA, “(…) the partners shall compensate the Commission for any
damage sustained by it as a result of the implementation of an Action or because an Action was not implemented or implemented poorly, partially or late”.
- Furthermore, pursuant to Article II.15.2.1(d), “[t]he Commission may suspend the implementation of an Action or any part thereof (…) following an evaluation of the progress of the project, in particular in the event of major delays in the implementation of the Action”.
- Moreover, pursuant to Article II.16.3.2(c) of the FPA, “[t]he Commission may decide to terminate the FPA or an SGA or the participation of a partner in the FPA or in an Action (…) if the partners do not implement the Action as specified in Annex I of the SGA or if a partner fails to comply with another substantial obligation incumbent on it under the terms of the FPA or SGA”.
- We also draw your attention to the possible financial consequences suspension or termination (e.g. Article II.16.4.1 of the FPA) as well as to the possible administrative and financial penalties foreseen in Article II.17(1) of the FPA which provides that “(…) a partner which (…) has failed to supply such information at the moment of the submission of an application or during the implementation of the Framework agreement or a Specific agreement, or has been found in serious breach of its obligations under the Framework agreement or a Specific agreement, shall be liable to (…) administrative penalties consisting of exclusion from all contracts and grants financed by the Union budget for a maximum of five years from the date on which the infringement is established and confirmed following a contradictory procedure with the partner; and/or financial penalties of 2% to 10% of the value of the contribution the partner concerned is entitled to receive, as indicated in the estimated budget set out in Annex II of the Specific agreement concerned as last amended (…).
- Similarly, please note that payments are also subject to suspension (cf. Article II.24.6(d) of the FPA).
- Finally, please also note that, pursuant to Article II.25.4, first paragraph of the FPA, “[i]f the action is not implemented properly in accordance with Annex I of the Specific agreement, or if any partner fails to comply with any other obligations under the Framework agreement or the Specific agreement, the Commission may reduce the grant amount set out in Article 3 of the Specific agreement in proportion to the improper implementation of the action or to the seriousness of the breach of obligations”.