STANDARD TERMS AND CONDITIONS

ON EEA AND NORWAY GRANTS FROM INNOVATION NORWAY

Updated Friday, 15 May 2020, 2:34 PM

1. Scope of the Project Contract

The Grant to the Project Promoter is offered on the terms and conditions laid down in the Grant Offer
Letter, these Standard Terms and Conditions, the Project Implementation Plan, Budget and the
Disbursement Plan (hereinafter called the Project Contract).

2. Conditions for the awarding of the Grant

The Grant is awarded under the following general conditions:

2.1 The Project Promoter shall provide all information necessary for the good implementation of
the project and apply the highest degree of transparency and accountability.
2.2 The Project shall contribute to good governance, sustainable development and gender equality.
It is a condition that the business shall be based on good business practice and stringent ethical
requirements, and that it does not contribute to corruption, the violation of human rights or
poor working conditions, or have a harmful impact on local communities and the environment.
Innovation Norway expects customers to have and use ethical requirements (policy) for own
operations and anti-corruption measures adapted to size, business type and risk. If serious
matters are uncovered that are in breach of the above-mentioned principles, this may
constitute grounds for Innovation Norway to terminate the contract.
2.3 The Project Promoter shall promptly inform Innovation Norway of any circumstances that
interfere or threaten to interfere with the successful implementation of the Project.

3. Conditions for disbursement

3.1 Before disbursement can take place, a signed Project Contract must exist between the Project
Promoter and Innovation Norway. In addition, requested documentation on the co-financing of
the project must have been submitted to Innovation Norway.

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 3.2 Disbursements are made pursuant to agreement with Innovation Norway and in accordance
with the approved Project Implementation Plan based on requests for disbursements
submitted by the Project Promoter. Payments of the project grant will take the form of an
advance payment, interim payments and a final payment.
3.3 The advance payment will be paid following the signature of the project contract, within one
month of the submission of a request by the project promoter. Subsequent payments will be
paid following the approval of project interim reports and no later than one month from the
date of approval. The final payment will be paid following approval of the final report and no
later than one month from the date of approval. 
3.4 Normally, advance payment of up to 10% of the awarded grant can be made, if requested by
the Project Promoter and included in the agreed Disbursement Plan and in the Project
Contract. If duly justified, advance payment of maximum 20 % can be made. Advance payment
to Project Partner(s) may take place according to their contribution in the project. Payments to
third parties, including donor project partners, require a Power of Attorney to Innovation
Norway from the Project Promoter.
3.5 Before disbursement can be made, Innovation Norway shall be provided with a Project Interim
Report. The report shall cover a period of at least 3 calendar months and be related to
expenditures from that period.
3.6 Disbursements will be made to a designated project account to be established by the Project
Promoter. The cash co-financing should also be transferred to the project account unless
otherwise stated in Grant Offer Letter.
3.7 Disbursement of the grant will take place upon documentation of compliance with any Special
Conditions and account statements from the Project Promoter, signed by the Project
Promoters Chief Financial Officer and Project Manager, and audited by an authorised auditor in
accordance with auditing standard IRS 805 (auditor's statements relating to audits for a special
purpose).
3.8 Requirement s for auditor’s statement:
a) Reference to the Project Contract and any amendments;
b) The auditor is aware of requirements set out in the call for proposal and the Standard
Terms and Conditions and relevant guidelines at the programme dedicated website;
c) Reference to financial report from the Project Promoter;
d) Confirmation of the eligible amount;
e) Confirmation of any interest revenues on project accounts, both accounts in EUR and local
currency;
f) Confirmation on co-financing.

3.9 Innovation Norway may retain up to 10% of the grant until the Final Project Report (last Interim
Report) has been approved by Innovation Norway.

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 3.10 In case of an error is made in relation to a disbursement resulting in a higher amount paid than
required under the Grant, the Project Promoter shall, upon request from Innovation Norway,
reimburse without delay the exceeded amount. Similarly, if an error results in a lower amount
paid than required, Innovation Norway shall, as soon as possible after being made aware of
such an error, disburse the missing amount.

4. Reservation related to disbursement

4.1 In the event that the project requires less funding than originally anticipated, Innovation
Norway may reduce the amount of the grant proportionately.
4.2 The offer will lapse if the Project Promoter applies for debt settlement proceedings, goes into
liquidation or voluntarily winds up the entity prior to the grant being disbursed.

5. Currency conversion

Disbursements shall be made to the designated project bank account of the Project Promoter.
Commitments and payments will be carried out in Euro (€). Payment claims (incl. advance payment)
forwarded from the Project Promoter to Innovation Norway shall be in Euro (€).

Payments to projects shall be converted to Euro using the monthly accounting exchange rate of the
European Commission in the month during which the expenditure was registered in the accounts of the
Project Promoter.

6. Reporting

The Project Promoter shall submit an interim and final project report containing information on project
progress and incurred expenditure to Innovation Norway every six month, or other intervals agreed in
the Project Contract, in connection with the payment claims:

 Technical/physical and financial progress in accordance with the

Project Contract;
 Any deviations from the Project Contract and possible repercussions
for the project;
 Tendering and procurement, if relevant;
 Special conditions in the Project Contract.

Deviations shall be documented by an updated Project Implementation Plan, updated activity-based

Budget and an updated Disbursement Plan.

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 Reports shall also include a bank statement of the project bank account(s) transactions for the relevant
period. Innovation Norway may at any time ask the Project Promoter for further information and
documentation. The reporting shall be done in accordance with the relevant provisions of the Project
Contract.

Costs incurred by the Project Promoter and the Project Partner(s) shall be supported by receipted
invoices or by accounting documents of equivalent probative value. Alternatively, proof of expenditure
may take the form of a report by an independent auditor, qualified to carry out statutory audits of
accounting documents, certifying that the reported costs are incurred in accordance with the Project
Contract, the national law and relevant national accounting practices. A report issued by a competent
and independent public officer recognized by the relevant national authorities as having a budget and
financial control capacity over the entity incurring the costs and who has not been involved in the
preparation of the financial statements, certifying that the claimed costs are incurred in accordance
with the Project Contract, national law and national accounting practices, will also be accepted as
sufficient proof of expenditure incurred.

Indirect costs identified as a flat rate in accordance with the provisions on indirect costs in the Call for
Proposals, and approved as a part of the Project Budget, do not need to be supported by proof of
expenditure.

The final project report (last interim report), as well as the final payment claim, shall be submitted to
Innovation Norway no later than three months after eligibility deadline set in the Project Contract.

The Project Promoter shall submit to Innovation Norway a yearly report on project results and impacts,
including performance on indicators, within 1 March every year. This can take the form of an electronic
survey sent to the Project Promoters by Innovation Norway.

The Project Promoter shall also submit a Project Completion Report to Innovation Norway, in
accordance with provisions in the Project Contract.

All reports shall be according to the requirements in templates that will be launched on the dedicated
programme website.

7. Annual financial statements

From the date on which the offer is accepted and for five years after the final disbursement, Innovation
Norway may demand that audited annual financial statements and annual reports be submitted to
Innovation Norway.

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 8. Modification of the Project

8.1 With the exceptions stipulated in paragraph 3 of this article, any modifications of the Project
shall be subject to Innovation Norway’s prior written approval. Before the proposed
modifications are implemented, Innovation Norway shall approve them.
8.2 Any such modifications may require a new appraisal prior to being accepted or rejected.

8.3 Modifications of the Project do not need an approval by Innovation Norway if they do not
affect the scope, objectives, purpose, or outputs of the Project, and the financial impact is
limited to:
a. Changes in any of the reporting periods for the Interim Project Reports scheduled in the
Project Implementation Plan,
b. A transfer between budget headings involving a variation of 10% or less of the amounts in
the latest approved Project Implementation Plan under each relevant heading, or,
c. A transfer between project activities involving a variation of 10 % or less of the amounts in
the latest approved Project Implementation Plan for such activity.
8.4 Notwithstanding paragraph 3, modifications that result in an increase of management costs will
always require a prior approval by Innovation Norway.

The Project Promoter must submit a revised Project Implementation Plan, Budget and Disbursement
Plan to Innovation Norway when:
 Proposing modification which requires an approval by Innovation Norway according to this
Article,
 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,
 Innovation Norway requests an updated Project Implementation Plan; a revised Project
Implementation Plan shall be submitted no later than 30 days after such request is sent.

9. Increased cost

9.1 If the cost of the implementation of the Project should exceed the estimated eligible project
cost or the estimated total project cost, Project Promoter shall ensure that any such additional
funds are made available so as to ensure the full implementation of the Project. If the Project
Promoter deems that additional funds cannot be made available or additional investments in
the project are not advisable, it can instead, decide to cancel the Project and the Project
Promoter shall refund the amount already disbursed.

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 9.2 The Project Promoter shall take on the obligation to provide additional funds if necessary
unless the conditions as laid down in paragraph 1 above are met.
9.3 If the Project requires more capital than anticipated, it is a condition that the increased capital
requirement is funded in a manner to be approved by Innovation Norway.

10. Suspension of Disbursements

10.1 Innovation Norway may decide to suspend disbursements of the Grant if:

a. the conditions for disbursement in accordance with Article 3 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 Project
Contract,
c. reports referred to in Article 6 or any other information requested has not been provided
or include incomplete information,
d. access required under Article 17 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, fraud or corruption, 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 EU/EEA and/or national
legislation,
h. a fundamental change of circumstances occurs and said circumstances constitute an
essential basis for the Project Contract or the contribution from the EEA/Norway Grants,
i. it becomes aware of any misrepresentation of facts in any information given by or on
behalf of the Project Promoter affecting, directly or indirectly the implementation of the
Project Contract,
j. an adjustment of the Grant is required in order to comply with the grant rate referred to in
the Project Contract or the requirements referred to in the eligibility provisions in the Call
for Proposals,
k. any other obligation stipulated in the Project Contract is not complied with by the Project
Promoter.

10.2 If possible, the Project Promoter shall be given an opportunity to provide its views prior to
Innovation Norway making a decision to suspend disbursements.
10.3 The decision to suspend disbursements shall be reasoned and immediately effective. The
Project Promoter shall be notified as soon as possible but no later than 10 workings days
from the date of the decision.

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 10.4 The Project Promoter can at any time present documents or other evidence showing that the
conditions in paragraph 10.1 (a) to (k) no longer apply or do not justify suspension of
disbursements, and request that Innovation Norway reviews its decision to suspend
payments.
10.5 When the Innovation Norway finds that the conditions described in paragraph 10.1 (a) to (k)
above no longer apply or justify suspension of disbursements, it shall take a decision to
continue disbursements.

11. Reimbursement

11.1 In case of serious non-compliance with the Project Contract, or if suspension of payments is not
feasible or likely to be sufficient, Innovation Norway may, after having consulted the Project
Promoter with a view to reaching a solution, decide to demand reimbursement if any of the
conditions referred to in litra (b) to (k) of Article 10.1 apply.

11.2 Innovation Norway may decide to demand reimbursement if it becomes aware of any
conviction of or fines for irregularities, fraud or corruption, or if such cases have not been
adequately reported, investigated or remedied.

11.3 Prior to making such a decision, Innovation Norway shall notify the Project Promoter of its
intention to demand reimbursement. The notification shall outline the reason for the proposed
measures. The Project Promoter can within 45 working days from the date of the notification
provide any documents relevant to the decision and/or provide its views.

11.4 The Project Promoter shall be notified of a decision referred to in paragraph 1 of this article as
soon as possible but no later than 10 workings days from the date of the decision. The
notification shall outline the reason for the decision.

11.5 Within three months from the decision of Innovation Norway, the Project Promoter shall
reimburse the requested amount to Innovation Norway, subject to the specifications detailed
in the decision.

11.6 If a request for reimbursement to Innovation Norway is not complied with by the Project
Promoter, or a dispute related to such a request arises that cannot be solved, the Parties may
bring the dispute before Oslo Tingrett. The disputed amount shall be transferred to a
designated bank account.

12. Special provisions on procurement and awarding of contracts

12.1 Applicable national and European Union law on public procurement shall be complied with at
any level in the implementation of the Programme and its projects.

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 12.2 A project promoter that receives 50% or more of the eligible expenditure of the project as a
project grant from the Programme shall conduct its procurement for that project in compliance
with the national public procurement law as though the project promoter were a contracting
authority under point 1 of Article 1 of Directive 2014/24 of the European Parliament and of the
Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC, where
the amount of the contract is at or above European Union thresholds set for public
procurement. This paragraph applies mutatis mutandis to project partners.
12.3 In cases where contracts concluded as part of the implementation of the Programme fall below
the national or European Union thresholds set for public procurement or outside the scope of
the applicable public procurement laws, the awarding of such contracts (including the
procedures prior to the awarding) and the terms and conditions of such contracts shall, in line
with the principle of proportionality, comply with best economic practices, including
accountability, allow a full and fair competition between potential providers, for example by
way of effective price comparison, and ensure the optimal use of resources from the EEA and
Norwegian Financial Mechanisms 2014-2021.
12.4 The highest ethical standards, as well as the avoidance of any conflict of interests, shall be
observed during the procurement and execution of contracts. The Fund Operator 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.

12.5 The Project Promoter shall ensure that records of the awarding and execution of contracts are
kept for at least five years and provided upon request by Innovation Norway.

13. State aid

If applicable for the project, the grant provided shall be in compliance with the relevant state aid
legislation. The Project Promoter and Project Partner(s) must cooperate with Innovation Norway to
clarify the issue. This implies that the Project Promoter, Project Partner(s) and other beneficiaries must
provide the information and documentation requested by Innovation Norway. This includes
information about any de minimis aid received by the Project Promoter and Project Partner(s), or other
beneficiaries, in the two last fiscal years and the applicable fiscal year.

14. Intellectual property rights

Any present or future intellectual property rights, such as patents, trademarks, designs, copyright etc.,
developed during the project or that constitute part of the project shall be the property of the Project
Promoter or be at the Project Promoter’s disposal under a licence or other right of use.
In case of a partnership project, the question of ownership and/or the right to use shall be agreed
between the Project Promoter and the Partner (s) in the Partnership Agreement.

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 Innovation Norway is entitled to require the Project Promoter to have adequate descriptions,
documentation, source codes etc. in respect of intellectual property rights, production
methods/systems etc. that are developed during or constitute part of the project, and to require that
they be stored in a secure manner. Innovation Norway may also demand that necessary declarations be
issued in respect of intellectual property rights.

15. Monitoring

Innovation Norway is entitled to monitor the Project. The Project Promoter is obliged to cooperate and
provide access and information to Innovation Norway or any one appointed by Innovation Norway to
carry out such monitoring. On request by Innovation Norway, the Project Promoter is obliged to
provide Innovation Norway, the Financial Mechanism Office (FMO), The EFTA Board of Auditors, the
Office of the Norwegian Auditor General and the relevant National Focal Point with summaries of all
audit reports relevant to the Project. Project Promoter shall upon request provide Innovation Norway,
the Financial Mechanism Office /FMO), the Office of the Norwegian Auditor General and the National
Focal Point with any audit report relevant to the Project or its implementation, including auditing
reports from the Supreme Audit Institution.

16. Immediate reporting on irregularities and other relevant developments

The Project Promoter and Project Partners shall immediately inform Innovation Norway of any legal
actions against the Project, including actions or decisions taken by EU/EEA institutions.
The grant will not be disbursed if Project Promoter, Partner(s) or other person(s) associated with the
Project Promoter’s business are suspected to be involved in offences referred to in national legislation
on corruption in the relevant Beneficiary State.

The Project Promoter and Project Partners are obliged to report to Innovation Norway any suspected
and actual cases of irregularities related to the project. An irregularity shall mean an infringement of:

a) The legal framework for EEA/Norway Grants, as published on www.eeagrants.org

b) This project contract
c) Any provisions of European Union Law
d) Any provision of the national law of the Beneficiary State or any other applicable national law
e) Procedures and guidelines developed by Innovation Norway, and made known to Project
Promoters and Project Partners.

Complaints about suspected infringement can be reported directly to Innovation Norway, or through
the Innovation Norway’s whistleblowing channel, where it’s also possible to report concerns
anonymously.

https://www.innovasjonnorge.no/en/start-page/our-organization/ethics-and-compliance-in-
innovation-norway/

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 17. Access

17.1 The Project Promoter shall ensure that Innovation Norway, the Financial Mechanism Office
(FMO) or anyone mandated to perform tasks on their behalf, The EFTA Board of Auditors, and
the Office of the Auditor General of Norway, 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 Project Contract. Such access is subject to the applicable
limitation under the national legislation of Beneficiary State.

17.2 The access does also include access to relevant information at the Project Partner, and the
Partnership Agreement should ensure that such access will be facilitated.

18. Audits by Innovation Norway, the Financial Mechanism Office, The EFTA Board of Auditors and
the Office of the Auditor General of Norway

Innovation Norway, the Financial Mechanism Office (FMO), The EFTA Board of Auditors and the Office
of the Auditor General of Norway may at any time arrange its own audits and inspections of the Project
at all relevant locations.

19. Publicity

The Project Promoter shall ensure that information on approved projects is communicated in the most
efficient way to users and the public at large and that the contribution of the Programme is given
adequate publicity.

Publicity Guidelines for project promoters will be adopted by Innovation Norway and launched at the
dedicated programme web-site.

Project summaries of approved projects will be uploaded at the website of the EEA and Norwegian
Financial Mechanisms, www.eeagrants.org and on the dedicated programme homepage xxxxxxxxxxxxx

20. Waiver of Responsibility

20.1 Any appraisal of the Project undertaken before or after the approval of the Project by
Innovation Norway does not in any way diminish the responsibility of the Project Promoter to
verify and confirm the correctness of the documents and information forming the basis of the
Project Contract.

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 20.2 Nothing contained in the Project Contract shall be construed as imposing upon Innovation
Norway any responsibility of any kind for the supervision, execution, completion, or operation
of the Project.

20.3 Neither Innovation Norway, nor The European Free Trade Association, of which the Financial
Mechanism Office is administratively a part, do 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 Project
Promoter to satisfactorily address such issues.

20.4 The Project Promoter or any other party shall not have recourse to Innovation Norway for
further financial support or assistance to the Project in whatsoever form over and above what
has been provided for in the Project Contract.

20.5 Innovation Norway cannot be held liable for any damages or injuries of whatever nature
sustained by the Project Promoter or any other third person, being indirect or indirect, related
to the Project Contract.

21. Language

All communication shall take place in the English language. To the extent that original documents are
not available in English, and other languages are not explicitly allowed by the Call for Proposals, the
documents shall be accompanied by full and accurate translations into English.

The Project Promoter shall bear the responsibility for the accuracy of the translation and the possible
consequences that might arise from any inaccurate translations.

22. Representations and Warranties

The Project Promoter represents and warrants that the information provided by, through, or on behalf
of the Project Promoter in connection with the application for funding, and the conclusion and
implementation of the Project Contract is authentic, accurate and complete.

23. Dispute resolution

Any dispute relating to the performance of the Project Contract shall be resolved amicably through
consultation between the Parties. Disputes which cannot be settled amicably, may be brought before
the Court of Oslo (Oslo Tingrett) and finally settled in accordance with the laws of the Kingdom of
Norway.

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 Oslo, October 2018

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