To help us plan for implementation, how should a Fund Operator plan for payments to Project Promoters, and when are costs for a project considered incurred?
It is up to the Fund Operator to define the payment process and schedule for payments to Project Promoters. The Programme Implementation Agreement does not require any amount or percentage of funding to be withheld until the end of the project but it is advisable not to pay the full grant upon project contract signature. In the Financial Mechanisms 2014-2021, some Fund Operators have used reports or other milestones for interim payments to Project Promoters. Costs in a project are incurred when they are invoiced, paid and the goods/services have been delivered/performed.