In each donor partnership project, the project promoter shall enter into a partnership agreement with the donor project partner(s). Partnership agreements involving a donor project partner shall be in English.
The FMO will provide a partnership agreement template for donor partnership projects.
The partnership agreement forms the basis for the cooperation between the parties, and it is therefore crucial that the project promoter and donor project partner work closely together in the preparation of the agreement.
Question: Is it necessary to ask potential applicants for bilateral initiatives to submit a partnership agreement together with their application as a proof of their cooperation with donor entities? Answer: The draft partnership agreement shall be submitted to the Fund Operator in English “before the signing of the project contract”. Some open calls require that the partner provides a letter of intent or some kind of confirmation that they indeed intend to contribute to the activities proposed. This is done to ensure that the bilateral partners are contacted and consulted on the proposed project before the application is submitted. As such, it is considered a helpful tool to ensure that the projects submitted are based on substantive cooperation between the parties. The nature of this confirmation is discretionary and should not be overly burdensome. It can for example be an email from the partner confirming the intention to cooperate on the project which is then attached to the application.
The draft partnership agreement or alternatively a letter of intent shall be submitted to the Fund Operator in English at the latest prior to the signature of the project contract. This gives the project promoter and donor project partner sufficient time to develop their cooperation and agree on roles, responsibilities and financial arrangements without being rushed into signing a partnership agreement. The parties should however seek to sign the partnership agreement as soon as possible following the signature of the project contract.
Best practice: Organise information sessions on the partnership agreement and reporting obligations for project promoters and donor project partners, as a support in this process.
In any project, including donor partnership projects, the project promoter is in general the grant recipient and the only one to enter into a contractual relation with the Fund Operator. In most donor partnership projects, the donor project partner will nevertheless implement parts of the project activities. The financial contribution to the project will consequently be distributed among the partners in accordance with the partnership agreement.
The expenditure of the donor project partners is reimbursed from the project budget, and accordingly, it is important that the partnership agreement includes figures which reflect the actual cost level in the donor state. The Fund Operator should ensure that funds for the donor project partner set aside in the partnership agreement can realistically enable the donor project partner to be reimbursed for its contribution.
It is important to note that there are substantial variations in the level of costs between the Donor and Beneficiary States. Differences in price levels must be reflected in the planning and implementation of project partnerships. This is to ensure that sufficient funds are set aside for donor partners and that reimbursements cover their actual costs. The Donor Contact Point can be of assistance when there are questions regarding the cost level in the Donor States.