With the signature of the financing agreement between the partner country and the EU represented by the Commission, the partner country agrees to the EU support as an expression of the development effectiveness principle of ownership. Therefore, signing a financing agreement is a good practice where the action is linked to a partner country. In certain cases, financing agreements are also signed with regional organisations of partner countries. Based on the financing agreement, the partner country may also become a direct recipient of funds (budget support) or it (or the regional organisation) may be involved in the implementation of the funds (indirect management).
The financing agreement is signed by the relevant geographical director for the Commission and, as a rule, by the representative of the partner country concerned.
A financing agreement is composed of:
- the special conditions (Annex E1a1 of the DEVCO Companion).
- Annex I containing the Technical Administrative Provisions for the implementation of the action, which describe the activities, the implementation modalities and the budget of the action
- Annex II (Annex E1a2 of the DEVCO Companion) containing the general conditions which set out the reciprocal obligations of the parties
The practical guide to procedures for programme estimates allows projects and programmes to be implemented through indirect management with the partner country or partner regional organisation
The practical guide to procedures for programme estimates allows projects and programmes to be implemented through partially decentralised financial management.