For the Implementation of the Project

Partnership Agreement

for the Implementation of the Project

<Project title, GC identification number>

Preamble

Having regard to the section6.3.2.of the Latvia-Russia Cross-border Cooperation Programme 2014-2020(hereinafter, the Programme), approved by the governments of the Republic of Latvia, the Russian Federation and adopted by the European Commission on 18 December 2015, EC decision No. C(2015)9181, the Lead Beneficiary shall sign the Partnership Agreement with all beneficiariesprior to signing the Gant Contract laying down provisions for distribution of tasks, responsibilities among all beneficiaries and Programme’s financial contribution.

The following Partnership Agreement is concludedbetween

Name and address, represented by name, position, acting as the Lead Beneficiary

and

<Name and address>, represented by <name, position>, acting as the beneficiary2,

<Name and address>, represented by <name, position>, acting as the beneficiary3,

<Name and address>, represented by <name, position>, acting as the beneficiary#,

(hereinafter, the beneficiaries)

hereinafter together referred to as the Parties,separately,to as the Party

for the implementation of the project<Project title, GC identification number> (hereinafter, the Project), approved by decision of the Joint Monitoring Committee of the Programme (hereinafter, the JMC) on <DD Month YYYY>and in accordance with the decision of the Managing Authority to finance the Project of <DD Month YYYY>.

By signing this Partnership Agreement the Parties confirm their commitment to achieve common outcomes and to reach the Project objectives as set forth in approvedapplication form which is Annex 1 to this Partnership Agreement.

Article1

Legal Framework

1.The Parties shall guarantee that the Project is implemented and managed in accordance with the following regulations and rules as well as the horizontal policies of the European Union and national legislation:

(a)Agreement on Financing and Implementation of Cross Border Cooperation Programme ”Latvia-Russia” 2014-2020 signed on 29 December 2016 (hereinafter referred to asFinancing Agreement);

(b)Regulation No 236/2014 of the European Parliament and of the Council of 11 March 2014 laying down common rules and procedures for the implementation of the Union's instruments for financing external action;

(c)Regulation No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (ENI Regulation);

(d)Commission Implementing Regulation No 897/2014 of 18 August 2014 laying down specific provisions for the implementation of cross-border cooperation programmes financed under Regulation (EU) No 232/2014 of the European Parliament and the Council establishing a European Neighbourhood Instrument (the Implementing Rules);

(e)Regulation No 966/2012of the European Parliament and of the Council Of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002;

(f)Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union;

(g)The Programming document for European Union support to ENI cross-border cooperation for the period 2014-2020, No C(2014) 7172;

(h)Joint Operational Programme “Latvia–Russia 2014-2020” for the ENI Cross-Border Cooperation programme for the years 2014 – 2020 approved by EC on 18 December 2015, decision No C(2015) 9181 and governments of the Republic of Latvia and the Russian Federation;

(i)“Communication and Visibility Manual for European Union External Actions” laid down and published by the European Commission;Practical Recommendations for Project Participants on the Information Coverage of the Russian Federation Participation in Cross-Border Cooperation Programmes between Russia and the EU elaborated by the Russian National Authorities;

(j)The Latvia-Russia Cross-border Cooperation Programme 2014-2020 implementation guidelines and annexes, including for direct award project beneficiaries“Guidelines for Direct Award Project Applicants”, for beneficiariesof call for proposals projects “Guidelines for Grant Applicants”, for all beneficiaries“Practical Guidelines for Implementation of Projects”, “Communication and Visibility Guidelines for project implementation by lead beneficiaries and beneficiaries” and any other guidelines and relevant Programme documents published on the Programme website

(k)Grant Contract signed between the Lead Beneficiary and the Managing Authority of the Programme and its annex.

(l)Applicable national legal acts and EU regulations and horizontal themes, in particular on sustainable development, environmental protection, competition and state aid, public procurement, equal opportunities.

Article 2

Subject of the Partnership Agreement

2.1Subject of this Partnership Agreement is the organisation and management of a cross-border partnership in order to implement the Project under the Programme, according to the established legal framework.

2.2The Partnership Agreement defines the rules of procedure for the work to be carried out and the relations that govern them that shall be respected bythe Parties within the cross-border partnership set up in order to complete the Project.

2.3By signing Partnership Agreement the Parties commit to implement the Project to their best ability according to the application form and to respect the European Union, Programme and national legislationreferred to in Article 1.

Article3

Duration of the Partnership Agreement

3.1The Partnership Agreement shall enter into force on the date, on which it is signed by all Parties.

3.2The execution period of this Partnership Agreement shall end(indicate the appropriate conditions – use the list below and supplement it with conditions relevant to the Project partnership)

when the Parties have discharged in full their obligations towards each other

when the Lead Beneficiaryhas discharged in full its obligationstowards the Managing Authority (hereinafter, the MA) as set in the Grant Contract

<in case the Grant Contract has not been signed by either/both Lead Beneficiary or/and MA>

in case of termination, suspension or extension of the Grant Contract pursuant its Articles 14and 15

Article4

Rights and obligations

4.1The Lead Beneficiary is authorised by the beneficiaries of the Project to sign the Grant Contract with the MA and to assume responsibility forensuring implementation of the entire Project towards the MA.

4.2Each beneficiary has the right to receive full information from the Lead Beneficiary on the issues related to the management of the Project and the financial flows received from and transferred to the MA.

4.3The Lead Beneficiary has the right to receive information and documentation from the beneficiaries related to the activities and expenditures of the Project.

4.4The Lead Beneficiary shall receive the financial contribution from the MA for the implementation of the Project and have full financial responsibility for ensuring that the Project is implemented in accordance with the Grant Contract.

4.5The Lead Beneficiary shall ensure coordination of all beneficiaries within implementation of the Project in accordance with this Partnership Agreement, the Grant Contract and the legal framework referred to in Article 1.

4.6The Lead Beneficiary shallensure that provisions of this Partnerhsip Agreement, the Grant Contract and legal framework referrend to in Article 1are applied equally to all the beneficiaries of the Project.

4.7In particular, the Lead Beneficiary shall fulfil the following obligations:

4.7.1Setting up and maintaining efficient and reliable project implementation system (strategic, daily and financial management):

(the points (a) to (h) may amended upon need further to agreement in the partnership, as far as the amendments do not undermine the provisions set forth by the legal basis of the Programme)

(a)ensure timely start of the project implementation and completion of all the actions provided in the application form, in accordance with the time plan and expenditures agreed jointly with the beneficiaries;

(b)appointing a project manager responsible for the whole Project implementation and a financial manager, responsible for the whole Project finances;

(c)ensuring overall efficient use of the project resources;

(d)co-ordination of activities and tasks among the beneficiaries and ensuring that these tasks are subsequently fulfilled;

(e)ensuring that actions under the project are implemented correctly and shall inform partners, MA and Joint Technical Secretariat (hereinafter, the JTS)immediately about any circumstances which might affect the deadlines and scope of activities provided in the project application form;

(f)take any actions which are necessary for timely receipt of funding;

(g)monitoring progress of the project as far as its financial and physical execution is concerned, and in particular, for ensuring the delivery of outputs and results in line with the approved application form;

(h)establishing adequate monitoring and evaluation system of the project that ensures timely delivery of outputs of the project and results in a proper quality.

4.7.2Ensuring proper communication within and outside the partnership:

(the points (a) to (e) may amended upon need further to agreement in the partnership, as far as the amendments do not undermine the provisions set forth by the legal basis of the Programme)

(a)representing the project – the lead beneficiary serves as a contact point for other beneficiaries to the MA, JMC and JTS concerning project implementation, and should ensure continuous communication between the Programme via JTS and the beneficiaries;

(b)consultingbeneficiaries regularly and keep them fully informed on the progress of the Project;

(c)communicating with the Programme management bodies and notifying other beneficiaries of any substantial communication with the Programme management bodies;

(d)distributing copies of the Grant Contract, updated application form, and other official documents to all beneficiaries;

(e)reacting promptly to any request of the Programme management bodies and beneficiaries.

4.7.3Ensuring timely and correct reporting and modification in the Project:

(the points (a) to (e) may amended upon need further to agreement in the partnership, as far as the amendments do not undermine the provisions set forth by the legal basis of the Programme)

(a)with assistance and approval of the beneficiaries, to prepare and submit interim and final reports, follow-up budget documentation, handle requests for payments and requests for Project’s modifications of the Grant Contract;

(b)ensuring that the expenditure presented by the beneficiaries has been incurred for the purpose of implementing the project and corresponds to activities set in the Grant Contract and agreed between all beneficiaries;

(c)checking that the expenditures (1) are supported by invoices or accounting documents understandable to third parties; (2) have actually been paid out by the project within the reporting period for activities described in the approved application form; and (3) that the products or services have actually been delivered;

(d)verifying that the expenditure presented by the beneficiaries has been examined by auditor;

(e)sending to all beneficiaries copies of consolidated interim and final reports submitted to the MA.

4.7.4Management of Project budget:

(a)requesting and receiving pre-financing instalments and the balance payment from the MA and ensuring that all the beneficiaries receive the appropriate payments in accordance with provisions of Partnership Agreement.No amount shall be deducted or withheld and no specific charge with equivalent effect shall be levied that would reduce these amounts for the beneficiaries;

(the points (b) to (d) may amended upon need further to agreement in the partnership, as far as the amendments do not undermine the provisions set forth by the legal basis of the Programme)

(b)managing and monitoring appropriate spending of the grant awarded;

(c)ensuring production and maintenance of all documentary evidence required for control and audit purposes on the level of theLead Beneficiary and beneficiaries;

(d)ensuring that the EU and national legislation concerning financial management and controls, public procurement, information and publicity and State Aid rules and principles (for beneficiaries from the Republic of Latvia) are respected and observed by all beneficiaries.

4.8The beneficiaries shallfulfil the following duties and obligations:

4.8.1Implementation of the Project:

(a)authorising the Lead Beneficiary to represent beneficiaries in all dealings with the MA with regards to implementation of the Project;

(b)implementing project in accordance with the provisions of the application formand Partnership Agreement, including financial management and controls, public procurement, information and publicity;

(c)each beneficiary shall be legally and financially responsible for the activities that it is implementing and for the share of the Programme co-financing that it receives;

(d)assuming the responsibility for the irregularities in its declared expenditure and repayment to the Lead Beneficiary amounts unduly spent or unduly received;

(the points are not limited to (e) to (k) and may amended and/or complemented upon need further to agreement in the partnership, as far as the amendments do not undermine the provisions set forth by the legal basis of the Programme)

(e)appointing a project manager and financial manager for the parts of the Project, which the beneficiaries are responsible for;

(f)carrying out timely activities, which is the beneficiaries are responsible for according to approved application form;

(g)implementing the approved Project in line with the principles of economy, efficiency and effectiveness and keep to the principles of sound financial management;

(h)producing and providing documents, information and data that are required by the Lead Beneficiary to coordinate and monitor the implementation of the Project and for reporting purposes on time;

(i)notifying the Lead Beneficiary of any event that could lead to any deviation of the Project;

(j)reacting promptly to any request by the Lead Beneficiary and the Programme management bodies;

(k)ensuring that all communication and visibility measures are in accordance with the applicable rules.

4.8.2Timely reporting and management of budget in the Project:

(a)preparation of individual interim and final reports consisting of technical and financial part;

(b)timely and correct reporting to the Lead Beneficiary according to the reporting schedule;

(c)ensure the expenditure verification of costs incurred within the Project;

(d)keeping and ensuring availability of all records, accounting and supporting documents related to the Project required for monitoring, control and audit purposes;

(e)ensuring that all project expenditures are made in strict compliance with the budget of the Project and that all expenditures (1) are supported by invoices or accounting documents understandable to third parties; (2) have actually been paid out by the project within the reporting period for activities described in the approved application form and (3) that the products or services have actually been delivered;

(the points are not limited to (f) to (g) and may amended and/or complemented upon need further to agreement in the partnership, as far as the amendments do not undermine the provisions set forth by the legal basis of the Programme)

(f)use separate accounting system or an adequate accounting code for accounting Project funds and expenditures;

(g)to disclose any revenues which occur or may occur with relation to the Project implementation.

4.9The MA and the JTS are not parties to this agreement or in the disputes that may arise between the Parties or towards third parties.

Article5

Liability

5.1The Parties to this Partnership Agreement shall be liable to each other and shall indemnify and hold harmless the thirdpartiesagainst any liability in respect of any damages and costs resulting from failing to performtheduties and obligations of the Lead Beneficiary and beneficiaries set forth in this Partnership Agreement and its annexes.

5.2In case of force majeure neither Parties shall be held liable for not complying with provisions of this Partnership Agreement. Should the case occur, aPartyin question shall notify the other Parties without delay.

5.3The Parties shall discharge the MA of all liability arising from any Project related claim or action brought as a result of an infringement of rules or regulations referred to in Article 1.

Article6

Organisational Structure of the Partnership

6.1 Each beneficiary including the Lead Beneficiary shall appoint a project manager, financial manager and other staff relevant for efficient implementation of the Project. (Descibe the structure and the functnion of each staff unit of all the beneficiaries, including the Lead Beneficiary as the points of this Article or as Annex to this Partnership Agreement).

6.2 For successful management of the partnership the Parties may set up a Project Steering Group. The Project Steering Group will be responsible for monitoring the implementation of the Project and approval of strategic decisions. The Project Steering Group will be chaired by the representative of the indicate the body, <name, position.

6.3 The members of the Project Steering Groupmayinclude representatives of the Lead Beneficiary, beneficiaries and any other organisation or individual deemed relevant by the beneficiary. The Project Steering Group willmeet on a define frequency basis. The representatives of the MA, the JTS and/or National Authorities of the participating countries (hereinafter, the NAs)maybe included into the Project Steering Group.

(If applicable,specify the detailed composition of the Project Steering Group and any sub-committees or working groups, their composition, role and assignments, and the decision making process).

Article7

Financial management andaccounting principles

7.1The Lead Beneficiary is the sole recipient of the instalments made by the MA on behalf of all the beneficiaries.Programme co-financing shall be paid to the account of the Lead Beneficiary. Theshare of the budget ofeachbeneficiary, the concrete costsas well as the maximum amount of Programme co-financing for each particular beneficiaryare established in the approved application form.

7.2The Lead Beneficiary shall be responsible for distributing the initial pre-financing instalment, further pre-financing instalment(s) and the balance payment received from the MA to the beneficiaries. The distribution shall be made in accordance with provisions of Article 7.3 providedthat further pre-financing instalments and balance shall be made in accordance with certified expenditure incurred for activities effectively carried out.

7.3The Lead Beneficiary shall distribute the funds to the beneficiaries within number working days of receiving payment from the MA. The following distribution scheme shall apply:(add here (or put it as Annex) the payment scheme elaborated and agreed in the project partnership. This scheme can be indicative in the very beginning and amended upon need prior to agreement among all the Parties to this Partnership Agreement)