Par granta līgumu spēkā stāšanos 7.3. pants

Valoda

1. Visa saziņa notiek angļu

valodā.

2. Ja oriģinālie dokumenti nav

pieejami angļu valodā, dokumentiem pievienojami pilnīgi un

precīzi tulkojumi angļu valodā.

3. Vadošā iestāde ir atbildīga par

tulkojumu pareizību un iespējamām sekām, kas var rasties no

neprecīza tulkojuma.

EEA Financial Mechanism

2004-2009

GRANT AGREEMENT

between The FINANCIAL MECHANISM COMMITTEE

established by Iceland, Liechtenstein and Norway and The Ministry

of Finance of the Republic of Latvia for the financing of the

"Technical assistance fund for 2006-2011" - Project

EEA Financial Mechanism

2004-2009

GRANT AGREEMENT

between The FINANCIAL MECHANISM

COMMITTEE

established by Iceland,

Liechtenstein and Norway

and The Ministry of Finance of the

Republic of Latvia,

hereinafter referred to as the "Focal Point",

representing the Republic of

Latvia,

hereinafter referred to as the "Beneficiary State"

together hereinafter referred to as

the "Parties"

for the financing of the "Technical

assistance fund for 2006-2011" - Project

hereinafter referred to as the

"Project"

Article 1

Scope

1. This Grant Agreement between

the Financial Mechanism Committee and the Focal Point lays down

the rights and obligations of the Parties regarding the

implementation of the Project and the financial contribution from

the EEA Financial Mechanism 2004-2009 to the Project.

2. The Terms and Conditions (Annex

I) and the Project Implementation Plan (Annex II) shall form an

integral part of this Grant Agreement. Any reference to the Grant

Agreement includes a reference to its annexes.

3. Modifications of the Project

and the Project Implementation Plan can be carried out in

accordance with Articles 4.1 and 4.2 of the Terms and

Conditions.

4. This Grant Agreement is based

on information provided by, through, or on behalf of the Focal

Point to the Financial Mechanism Committee in the application for

the Grant dated 27 July 2006, and on any other written

information provided or confirmed by the Focal Point.

Article 2

Grant

1. The Financial Mechanism

Committee shall, subject to the rules stipulated in the legal

framework referred to in Article 1.2 of the Terms and Conditions,

make available to the Focal Point a financial grant (hereinafter

referred to as "the Grant") to be used exclusively to finance the

eligible cost of the Project. The Grant shall not exceed the

amount of EUR 593,563.

2. The estimated eligible project

cost is EUR 1,396,618.

3. The estimated total project

cost is EUR 1,396,618.

4. The grant rate shall not exceed

42.5 percent of the total, final eligible cost for the completed

Project. This grant rate shall not be exceeded at any point

during the implementation of the project. Further information on

the funding is provided in the Project Implementation Plan (Annex

II).

5. The grant rate is based on the

assumption that no excess profit will be generated by the

project.

Article 3

Description of

the Project

The overall objective of the

project is a successful implementation of the EEA/Norwegian

Financial Mechanisms. The purpose of the project is to raise the

public awareness of the EEA/Norwegian Financial Mechanisms, to

provide information for the potential applicants and to improve

the administration and control of the EEA/Norwegian Financial

Mechanisms. In addition to the application form, the awarding of

the Grant is based on supporting documentation sent by the Focal

Point on 6 September 2006.

The following activities are

planned within this project:

1. Activities related to promotion

and information activities (seminars, brochures, websites,

announcements in local, regional and national media);

2. Activities related to

organization and participation in the meetings and committees

(Steering committee meetings, meetings with FMO, Annual

meetings);

3. Activities related to

additional management systems specifically established for the

Norwegian/EEA Financial Mechanisms (hiring of extra staff in the

relevant line ministries);

4. Carrying out of the audits.

Activities will be carried out

within the Focal Point, which is the Ministry of Finance, and

Central Finance and Contracting Agency, and in the Intermediate

bodies (line ministries) involved in the implementation of the

EEA/Norwegian Financial Mechanisms.

The project promoter (Ministry of

Finance) shall provide at least 15 per cent of the eligible

project costs.

Further information on activities

and results is provided in the Project Implementation Plan (Annex

II).

Article 4

Eligibility of

expenses

1. Unless otherwise agreed by the

parties, the Detailed Eligibility Provisions -

Expenditures dated 24 May 2006 shall be applicable to the

implementation of the Project.

2. Expenditures incurred before 20

October 2006 are not eligible.

3. Expenditures incurred after 30

April 2011 are not eligible.

Article 5

Disbursements

1. The Financial Mechanism

Committee may retain EUR 34,915 until the Project Completion

Report referred to in Article 4.4 of the Terms and Conditions has

been approved by the Financial Mechanism Committee.

2. Disbursements shall be made in

EUR to the following bank account of the

Beneficiary State:

Account Holder: The Treasury of

the Republic of Latvia

IBAN: LV96 LACB 0000 0000

11657

Swift/BIC Code: LACBLV2X

Bank Name: The Bank of Latvia

Bank Address: LV-1050 Riga,

Kr.Valdemara Street

3. Provisions for advance

payments

Not applicable

Article 6

Conditions for

the awarding of the Grant

1. The grant is awarded under the

following general conditions

The Focal Point for the Republic

of Latvia shall in its management on the Financial Mechanisms

ensure that the cross-cutting objectives applying to the grants

(sustainable development, gender equality, good governance) are

applied. The Focal Point shall ensure this not only in respect of

this application, but in respect of all applications financed

through the Financial Mechanisms in Latvia, including through

actions such as publicity, recruitment, guidance to intermediate

bodies, applicants and project promoters and monitoring over the

duration of the grant.

Over the duration of the grant,

the applicant shall once a year, at the latest at the end of

September, present to the Financial Mechanism Office for

discussion and clearance a detailed budget (with detailed

justification) for the following year. The format of this budget

shall follow that used in an attachment to the application for

the grant, but may be subject to amendment by the FMO.

2. The following conditions shall

be fulfilled prior to the first disbursement:

Not applicable

3. The following conditions shall

be fulfilled before completion of the project:

Not applicable

4. The Focal Point shall ensure

that the Project Promoter takes in a timely manner the necessary

steps to fulfil the conditions described above.

5. As the Focal Point is the

Project Promoter, Article 2.6 of the Terms and Conditions (Annex

I) is not applicable.

6. The grant/grant rate applied

for has been reduced on the following grounds:

Not applicable

Article 7

Specific post

completion obligations

After the completion of the

Project, the Focal Point shall comply with the following specific

post completion obligations:

Not applicable

Article 8

Contact

information

1. The addresses of the Parties to

this Grant Agreement and other relevant bodies at the time of

signing are as follows:

Focal

Point:

Ministry of Finance of the

Republic of Latvia

Att: Ronalds Fisers

Smilšu str. 1

Riga LV-1919

Latvia

Telephone: +371 (709) 5535

E-mail:

Ronalds.Fisers@fm.gov.lv

Financial

Mechanism Committee and the Financial Mechanism Office:

The Financial Mechanism Office

European Free Trade

Association

Att: Director of the Financial

Mechanism Office

Rue Joseph II 12-16

B-1040 Brussels

Belgium

Telephone: +32 (0)2 286 1701

Telefax (general): +32 (0)2 286

1789

E-mail: fmo@efta.int

Project

Promoter:

Ministry of Finance of the

Republic of Latvia

Att: Ms Laila Lipane

Smilšu str. 1

Riga LV-1919

Latvia

Telephone: +371 (709) 5684

E-mail: Laila.Lipane@fm.gov.lv

Disbursement

Agent:

BBVA

Avenue des Arts 43

1040 Brussels

Belgium

2. Changes of the above contact

information shall be given in writing without undue delay by each

party to this Grant Agreement.

Article 9

Entry into force

and duration

1. This Grant Agreement shall

enter into force on the date of the last signature of the

Parties.

2. This Grant Agreement shall

remain in force until 10 years have elapsed after the date of the

acceptance of the Project Completion Report.

********

This Grant Agreement is drawn up

in two originals in the English language.

Signed in Brussels on

16.01.2007.

Signed in Riga

on 10.05.2007.

For the Financial

Mechanism

Committee

For the Focal Point

Anders

Erdal

Irēna

Krūmane

Chairman

State Secretary

Terms and Conditions for

Individual Projects financed by the EEA Financial Mechanism

2004-2009

CHAPTER 1

SCOPE, LEGAL

FRAMEWORK, AND DEFINITIONS

Article 1.1

Scope

These terms and conditions form an

integral part of the Grant Agreement and shall apply to the

implementation of the Project.

Article 1.2

Legal

Framework

The Grant Agreement shall be read

in conjunction with the following documents which, together with

the Grant Agreement, constitute the legal framework of the EEA

Financial Mechanism 2004-2009:

(a) Protocol 38a to the EEA

Agreement, establishing the EEA Financial Mechanism

2004-2009;

(b) The Rules and Procedures for

the implementation of the EEA Financial Mechanism 2004-2009

adopted by the EFTA States in accordance with Article 8(2) of

Protocol 38a, as amended;

Understanding on the Implementation of the EEA Financial

Mechanism 2004-2009, entered into between the EFTA States and the

Beneficiary State.

Article 1.3

Definitions

General terms, institutions and

documents referred to in the Grant Agreement shall be understood

in accordance with the provisions of the legal framework referred

to in Article 1.2.

CHAPTER 2

GENERAL

PRINCIPLES RELATED TO THE IMPLEMENTATION OF THE PROJECT

Article 2.1

Co-operation

1. The Parties shall take all

appropriate and necessary measures to ensure fulfilment of the

obligations and objectives arising out of the Grant

Agreement.

2. The Parties agree to provide

all information necessary for the good functioning of the Grant

Agreement and to apply the highest degree of transparency and

accountability as well as the principles of good governance,

sustainable development and gender equality.

3. The Parties shall promptly

inform each other of any circumstances that interfere or threaten

to interfere with the successful implementation of the

Project.

Article 2.2

Representation

and communication

All communication to the Financial

Mechanism Committee in regard to the Grant Agreement shall be

directed to the Financial Mechanism Office, which generally

represents the Financial Mechanism Committee towards the Focal

Point.

Article 2.3

Main

responsibilities of the Focal Point

The Focal Point is responsible and

accountable for the overall management of the EEA Financial

Mechanism 2004-2009 in the Beneficiary State.

The Focal Point shall be

responsible for the implementation of the Grant Agreement and

shall:

(a) ensure that the Project is

implemented in accordance with the Grant Agreement

(b) take all necessary steps to

ensure that the Project Promoter is fully committed and able to

implement, operate and maintain the project

exclusively for the purpose of the Project and according to the

approved Project Implementation Plan and that any necessary

financial contributions in addition to the Grant are received in

a timely manner

(d) ensure that all relevant

Community, national and local legislation (including, but not

limited to legislation on the environment, public procurement and

state aid) shall be fully complied with

(e) ensure that all assets forming

part of the Project are used only for such purposes as provided

for in the Grant Agreement

(f) ensure publicity of the

Project in accordance with Article 5.4 of the Rules and

Procedures and the Publicity Guidelines

(g) ensure that the Financial

Mechanism Committee is upon request provided with all documents

and information related to the implementation of the Project

(h) make all the necessary and

appropriate arrangements in order to strengthen or change the way

the Project is managed.

Article 2.4

Monitoring and

audit by the Focal Point

1. The Focal Point shall be

responsible for monitoring of the Project. The monitoring shall

be thorough enough to enable the Focal Point to certify the

information provided by the Project Promoter in the reports

referred to in the Beneficiary State Reporting and Monitoring

Guidelines.

2. The Focal Point shall ensure a

complete audit trail in all engaged actors in accordance with

Article 6.1 of the Rules and Procedures and sound accounting

principles and methods.

3. The Focal Point shall ensure

that audit of the Project is conducted in accordance with the

audit plan provided according to Article 6.2 of the Rules and

Procedures. If necessary, the Focal Point shall draw upon

services of a reputable and well established audit company.

Furthermore, the project should be included in the existing

control/audit procedures of the Project Promoter.

4. The Focal Point shall, in

accordance with Article 6.2 of the Rules and Procedures, provide

the Financial Mechanism Committee with summaries of all audit

reports relevant to the Project. The Focal Point shall upon

request provide the Financial Mechanism Office, the Financial

Mechanism Committee, or the EFTA Board of Auditors with any audit

report relevant to the Project or its implementation, including

auditing reports from the Supreme Audit Institution.

Article 2.5

Immediate

reporting on irregularities and other relevant developments

1. The Focal Point shall ensure

efficient and prompt investigation of any suspected and actual

cases of fraud and irregularity. The Focal Point shall, in

accordance with the Irregularities Guidelines adopted by

the Financial Mechanism Committee, immediately report to the

Financial Mechanism Committee all suspected and actual cases of

fraud and irregularity as well as all measures related thereto,

taken by competent national authorities.

2. The Parties shall immediately

inform each other if they become aware of any legal actions

initiated or continued against the Project, including actions or

decisions taken by the European Community institutions.

Article 2.6

Implementation

contract with the Project Promoter

1. The Focal Point shall ensure

the signing of a contract with the Project Promoter on the

implementation of the Project. Such implementation contract shall

ensure that the obligations undertaken by the Focal Point in this

Agreement are properly delegated to the Project Promoter in a

manner which ensures enforceability of these obligations. In

cases where the Grant, due to provisions in the national

legislation, cannot be disbursed to the Project Promoter on the

basis of an implementation contract, the Beneficiary State may

instead issue a legislative or administrative act of similar

effect.

2. Delegation of obligations

referred to in paragraph 1 of this Article does not in any way

affect the obligations and responsibilities of the Focal Point

under this Grant Agreement.

3. Prior to the first

disbursement, the Focal Point shall have submitted to the

Financial Mechanism Committee a standard version of such an

implementation contract or implementation act.

4. Prior to the first

disbursement, the Focal Point shall provide the Financial

Mechanism Committee with the following information on the

contract or act relevant to the Project:

(a) full legal name of the Project

Promoter;

(b) number of application (FMO

number) and name of project;

the contract or date of issuance of the act, and

(d) information as to which

standard version of the contract or act is used for the

Project.

5. If the standard version of the

contract or the act has already been sent to the Financial

Mechanism Committee, the reference in paragraph 4(d) of this

article is to be considered a fulfilment of paragraph 3.

6. Upon request, the Focal Point

shall provide the Financial Mechanism Committee with a copy of

the implementation agreement or act, accompanied by a translation

into English.

Article 2.7

Representations

and Warranties

The Focal Point represents and

warrants that the information provided by, through, or on behalf

of the Focal Point in connection with the application for

funding, and the conclusion and implementation of this Grant

Agreement are authentic, accurate and complete.

CHAPTER 3

DISBURSEMENT AND

ELIGIBILITY

Article 3.1

Eligible

Expenditures

1. Only expenses that are eligible

according to Article 3.1 of the Rules and Procedures and the

Detailed Eligibility Provisions - Expenditures can form

the basis for the financing from the EEA Financial Mechanism

2004-2009.

2. Final acceptable payment claims

must be received within six months of the last date for eligible

expenditures referred to in Article 4 of the Grant Agreement.

Payment claims received at a later date or deemed not acceptable

by the Financial Mechanism Committee will not constitute a basis

for disbursement.

3. The financial mechanism

committee can, in accordance with article 3.1.3 of the rules and

procedures, extend the period of eligibility.

Article 3.2

Disbursement of

the Grant

1. Disbursements are made in

accordance with the approved Project Implementation Plan based on

requests for disbursements submitted by the Paying Authority.

2. Before disbursement can be

made, the Financial Mechanism Committee shall be provided with a

Project Interim Report both in electronic and hard copy,

certified by the Focal Point and the Paying Authority in

accordance with the Disbursement Guidelines and the

Beneficiary State Reporting and Monitoring Guidelines. The

Project Interim Report shall cover a period of at least 3

calendar months and be related to expenditures from that

period.

3. When the required documents

have been provided the Financial Mechanism Committee shall verify

that they are in the correct form and that the conditions for the

disbursement have been met. Unless the Financial Mechanism

Committee decides to make use of remedies provided in Chapter 6,

the Financial Mechanism Committee shall as soon as possible and

within two months from the receipt of the disbursement request,

order its Disbursement Agent to execute the disbursement in

question to the Paying Authority. The Financial Mechanism

Committee shall notify the Paying Authority when such

disbursement order has been submitted.

4. In case of an error made in

relation to a disbursement resulting in a higher amount paid than

required under the Grant Agreement, the Focal Point shall, upon

request from the Financial Mechanism Committee, reimburse without

delay any amount unduly disbursed. Similarly, if an error results

in a lower amount paid than required, the Financial Mechanism

Committee shall, as soon as possible after being made aware of

such an error, disburse the missing amount.

5. The principle of pro rata

financing of costs incurred shall apply, meaning that the grant

rate referred to in Article 2 of the Grant Agreement shall not be

exceeded at any time during the implementation of the Project.

This is without prejudice to Article 3.4.

6. When the disbursement has been

made, and received by the Paying Authority in full, the Financial

Mechanism Committee has fulfilled its obligations relating to

that disbursement.

Article 3.3

Transfer and Use

of the Grant

The Focal Point shall ensure that

the Paying Authority, within fifteen working days of receipt of

the disbursement, transfers the disbursement to the Project

Promoter. The Financial Mechanism Committee shall be notified by

e-mail before the 15th of each month of the transfers

made in the previous month. Such notification shall contain the

amount transferred, the name of the recipient, the FMO project

number, and the date of the transfer.

Article 3.4

Increased

cost

1. If the cost of the

implementation of the Project should exceed the estimated

eligible project cost or the estimated total project cost as

stipulated in paragraphs 2 and 3 of Article 2 of the Grant

Agreement, the Focal Point shall ensure that any such additional

funds are made available so as to ensure the full implementation

of the Project. If the Focal Point deems that additional funds

cannot be made available or additional investments in the project

are not advisable, it can instead, after consultation with the

Financial Mechanism Committee, decide to cancel the Project and

refund the amount already disbursed.

2. The Focal Point shall ensure

that the Project Promoter, independently from the responsibility

of the Focal Point under paragraph 1, takes on an obligation to

provide additional funds if necessary.

CHAPTER 4

OBLIGATIONS

RELATED TO THE IMPLEMENTATION OF THE PROJECT

Article 4.1

Modification of

the Project

1. With the exceptions stipulated

in paragraph 3 of this article, any modifications of the Project

shall be subject to the Financial Mechanism Committee's prior

written approval. Before submitting the proposed modifications,

the Focal Point shall approve them and confirm that they are

necessary and/or suitable for the effectiveness of the

Project.

2. Any such modifications may

require a new appraisal prior to being accepted or rejected.

3. Modifications of the Project do

not need an approval of the Financial Mechanism Committee if they

do not affect the scope, objectives or results of the project,

and the financial impact is limited to:

(a) changes in any of the

reporting periods for the Project Interim Reports scheduled in

the Project Implementation Plan,

(b) a transfer between budget

headings involving a variation of 15% or less of the amounts in

the latest approved Project Implementation Plan under each

relevant heading, or,

activities involving a variation of 15 % or less of the amounts

in the latest approved Project Implementation Plan for such

activity,

4. Notwithstanding paragraph 3,

modifications that result in an increase of administrative costs

will always require a prior approval of the Financial Mechanism

Committee.

Article 4.2

Revision of the

Project Implementation Plan

The Focal Point must submit a

revised Project Implementation Plan to the Financial Mechanism

Committee when:

(a) proposing modification which

requires an approval by the Financial Mechanism Committee

according to Article 4.1,

(b) any of the reporting periods

for the Project Interim Reports scheduled in the Project

Implementation Plan are changed; a revised Project Implementation

Plan shall be submitted no later than 60 days before the end of

the first affected reporting period, or,

Committee requests an updated Project Implementation Plan; a

revised Project Implementation Plan shall be submitted no later

than 30 days after such request is sent.

Article 4.3

Special

provisions on procurement and awarding of contracts

1. The Focal Point shall ensure

that public procurement principles and procedures following from

national and Community legislation are applied at any level in

the implementation of the Grant Agreement.

2. In cases where contracts

concluded as part of the implementation of the project fall below

the national or Community thresholds set for public procurement

or outside the scope of the applicable public procurement laws,

the Focal Point shall ensure that the awarding of such contracts

(including the procedures prior to the awarding) and the terms

and conditions of such contracts comply with best economic

practices, including accountability, allow a full and fair

competition between potential providers, and ensure the optimal

use of resources from the EEA Financial Mechanism 2004-2009.

3. The Focal Point shall ensure

that the highest ethic standards are observed during the

procurement and execution of contracts, and shall ensure the

application of adequate and effective means to prevent illegal or

corrupt practices. No offer, gifts, payments or benefit of any

kind, which would or could, either directly or indirectly, be

construed as an illegal or corrupt practice, e.g. as an

inducement or reward for the award or execution of procurement

contracts, shall be accepted.

4. The Focal Point shall ensure

that records of the awarding and execution of contracts are kept

and provided upon request to the Financial Mechanism

Committee.

Article 4.4

Reporting

The Focal Point shall provide

Project Interim Reports, Annual Project Progress Reports and the

Project Completion Report in accordance with the Beneficiary

State Monitoring and Reporting Guidelines.

CHAPTER 5

EXTERNAL

MONITORING AND AUDIT

Article 5.1

Monitoring by

the Financial Mechanism Committee

The Financial Mechanism Committee

may monitor the implementation and the progress of the Project in

order to ensure that it is in compliance with the Grant

Agreement.

Article 5.2

Audit by the

Financial Mechanism

Committee

In accordance with Article 6.4 of

the Rules and Procedures, the Financial Mechanism Committee may

at any time arrange its own audits and inspections of the Project

at all relevant locations.

Article 5.3

Audit by EFTA

Board of Auditors

In accordance with Article 6.3 of

the Rules and Procedures, the EFTA Board of Auditors may at any

time conduct audits of the Project at all relevant locations.

Article 5.4

Access

1. The Focal Point shall ensure

that the Financial Mechanism Committee and the Financial

Mechanism Office or anyone mandated to perform tasks on their

behalf, and the EFTA Board of Auditors, have upon request,

prompt, full, and unimpeded access to all information, documents,

persons, locations and facilities, public or private, relevant to

the implementation of the Grant Agreement. Such access is subject

to the applicable limitation under the national legislation of

Beneficiary State.

2. The Focal Point shall, upon

request, ensure that the above mentioned authorised

representatives are accompanied by relevant personnel and provide

them with the necessary assistance. Request under this paragraph

shall be sent at least two weeks before the planned visit.

Article 5.5

Responsibility

The external monitoring and audit

referred to in this chapter shall not in any way relieve the

Focal Point of its obligations under the Grant Agreement

regarding monitoring of projects, financial control and

audit.

CHAPTER 6

SUSPENSION AND

REIMBURSEMENTS

Article 6.1

Suspension of

Disbursements

1. The Financial Mechanism

Committee may decide to suspend disbursements of the Grant

if:

(a) the conditions for

disbursement in accordance with Article 3.2 have not been

met,

(b) credible information indicates

that the implementation or the progress of the Project does not

correspond to the Project Implementation Plan or is not in

compliance with the Grant Agreement,

4.4 or any other information requested has not been provided or

include incomplete information,

(d) access required under Chapter

5 is restricted,

(e) the financial management of

the Project has not been in accordance with internationally

recognised accounting principles,

(f) it becomes aware of suspected

or actual cases of irregularities or fraud, or if such cases have

not been adequately reported, investigated or remedied,

(g) the implementation of the

Project is deemed to be in violation of Community law,

(h) a fundamental change of

circumstances occurs and said circumstances constitute an

essential basis for the Grant Agreement or the contribution from

the EEA Financial Mechanism 2004-2009 to the Project,

(i) it becomes aware of any

misrepresentation of facts in any information given by or on

behalf of the Focal Point affecting, directly or indirectly the

implementation of the Grant Agreement,

(j) interests generated on the

designated bank account of the Paying Authority have not been

accounted for according to Article 3.2 of the Disbursement

Guidelines,

(k) an adjustment of the Grant is

required in order to comply with the grant rate referred to in

the Grant Agreement or the requirements referred to in Article

3.2 of the Rules and Procedures, or

(l) any other obligation

stipulated in the Grant Agreement is not complied with by the

Focal Point.

2. If possible, the Focal Point

shall be given an opportunity to provide its views before the

Financial Mechanism Committee takes a decision to suspend

disbursements.

3. The decision to suspend

disbursements shall be reasoned and immediately effective. The

Focal Point shall be notified as soon as possible but no later

than 7 workings days from the date of the decision.

4. The Focal Point can at any time

present documents or other evidence showing that the conditions

in paragraph 1 (a) to (l) no longer apply or do not justify

suspension of disbursements, and request that the Financial

Mechanism Committee reviews its decision to suspend payments.

5. When the Financial Mechanism

Committee finds that the conditions described in paragraph 1 (a)

to (l) above no longer apply or justify suspension of

disbursements, it shall take a decision to continue

disbursements.

Article 6.2

Reimbursement

1. In case of serious

non-compliance with the Grant Agreement, or if suspension of

payments is not feasible or likely to be sufficient, the

Financial Mechanism Committee may, after having consulted the

Focal Point with a view to reaching a solution, decide to demand

reimbursement if any of the conditions referred to in littera (b)

to (l) of Article 6.1 apply.

2. Prior to making such a

decision, the Financial Mechanism Committee shall notify the

Focal Point of its intention to demand reimbursement. The

notification shall outline the reason for the proposed measures.

The Focal Point can within 45 working days from the date of the

notification provide any documents relevant to the decision.

3. At any time prior to the

decision to demand reimbursement, the Focal Point and the

Financial Mechanism Committee can enter into a dialogue with a

view to ensure that the said decision is based on accurate and

correct facts.

4. The Focal Point shall be

notified of a decision referred to in paragraph 1 of this article

as soon as possible but no later than 7 workings days from the

date of the decision. The notification shall outline the reason

for the decision.

5. Within three months from the

decision of the Financial Mechanism Committee, the Focal Point

shall, with the exception stipulated in paragraph 7 of this

article, reimburse the Financial Mechanism Committee the amount

requested, subject to the specifications detailed in the

decision.

6. Reimbursement from the Focal

Point to the Financial Mechanism Committee is not contingent upon

reimbursement from the Project Promoter.

7. If the Project Promoter is a

private entity and the Focal Point shows that it has and is

taking appropriate measures to recover the funds from the Project

Promoter, the Financial Mechanism Committee can decide to give

the Focal Point up to one year to reimburse the requested funds.

In such a case, the Financial Mechanism Committee can also decide

to contribute up to 50% of reasonable legal fees related to the

recovery of the funds.

8. If a demand for reimbursement

to the Financial Mechanism Committee is not complied with by the

Focal Point, or a dispute related to a demand for reimbursement

arises that cannot be solved in accordance with Article 7.1, the

Parties may bring the dispute before Oslo Tingrett in accordance

with Article 1.7 of the Rules and Procedures.

Article 6.3

General

suspension of disbursements

1. The Financial Mechanism

Committee may, after having consulted the Focal Point with a view

to reaching a solution, suspend payments if:

(a) information or documents

obtained by or provided to the Financial Mechanism Committee

indicate the presence of systemic or widespread shortcomings

regarding the management of the financial contribution from the

EEA Financial Mechanism 2004-2009 in the Beneficiary State,

(b) a demand for reimbursement

related to any type of project assistance in the Beneficiary

State financed by the EEA Financial Mechanism 2004-2009 has not

been complied with by the Focal Point.

2. The procedures referred to in

paragraphs 2 to 4 of Article 6.2 shall apply mutatis mutandis to

suspension of disbursements under this article.

3. If the situation referred to in

paragraph 1(a) of this article relate directly to this Project,

the Financial Mechanism Committee can apply the procedures under

Article 6.1.

CHAPTER 7

FINAL

PROVISIONS

Article 7.1

Dispute

settlement

The Parties waive their rights to

bring any dispute related to the Grant Agreement before any

national or international court, and agree to settle such a

dispute in an amicable manner. This article shall be without

prejudice to paragraph 8 of Article 6.2.

Article 7.2

Waiver of

Responsibility

1. Any appraisal of the Project

undertaken before or after the approval of the Project by the

Financial Mechanism Committee, does not in any way diminish the

responsibility of the Focal Point to verify and confirm the

correctness of the documents and information forming the basis of

the Grant Agreement.

2. Nothing contained in the Grant

Agreement shall be construed as imposing upon the Financial

Mechanism Committee or the Financial Mechanism Office any

responsibility of any kind for the supervision, execution,

completion, or operation of the Project.

3. The Financial Mechanism

Committee does not assume any risk or responsibility whatsoever

for any damages, injuries, or other possible adverse effects

caused by the Project, including, but not limited to

inconsistencies in the planning of the Project, other project(s)

that might affect it or that it might affect, or public

discontent. It is the full and sole responsibility of the Focal

Point to satisfactorily address such issues.

4. Neither the Focal Point, nor

the Project Promoter or any other party shall have recourse to

the Financial Mechanism Committee for further financial support

or assistance to the Project in whatsoever form over and above

what has been provided for in the Grant Agreement.

5. Neither the European Free Trade

Association, its Secretariat, including the Financial Mechanism

Office, its officials or employees, nor the Financial Mechanism

Committee, its members or alternate members, nor the EFTA States,

can be held liable for any damages or injuries of whatever nature

sustained by the Focal Point or the Beneficiary State, the

Project Promoter or any other third person, in connection, be it

direct or indirect, with the Grant Agreement.

Article 7.3

Language

1. All communications shall take

place in the English language.

2. To the extent that original

documents are not available in the English language, the

documents shall be accompanied by full and accurate translations

into English.

3. The Focal Point shall bear the

responsibility for the accuracy of the translation and the

possible consequences that might arise from any inaccurate

translations.