Grants
1. Grants shall take the form of financing not linked to costs in accordance with point (a) of Article 125(1) of the Financial Regulation.
2. The amount of the grant shall not exceed 15 % of the amount of the loan provided by the finance partner under the Facility. For projects located in territories in less developed regions, the amount of the grant shall not exceed 25 % of the amount of the loan provided by the finance partner under the Facility.
3. Payments of an awarded grant may be split into several instalments linked to progress in implementation as set out in the grant agreement.
Reduction or termination of the grants
1. In addition to the grounds specified in Article 131(4) of the Financial Regulation, after consulting the finance partner, the Commission may reduce the amount of the grant or terminate the grant agreement if within two years from the date of signature of the grant agreement, the economically most significant supply contract, works contract or services contract has not been signed and the conclusion of such contract is envisaged pursuant to the grant agreement.
2. Where Union support is combined with loan schemes or where a supply contract, works contract or services contract is not envisaged, paragraph 1 does not apply.
In such cases, after consulting the finance partner, the Commission may reduce the amount of the grant or terminate the grant agreement, and recover any related amounts paid, in accordance with the conditions set out in the grant agreement.
