Termination and End Date of the Delegation Agreement

Termination By the Humanitarian Organisation

The UN Agency may terminate the Delegation Agreement in duly justified cases, for example if changes in circumstances in the field are likely to make it impossible or excessively difficult to continue the implementation of the Action, as in cases of force majeure, serious threat to the safety or security of humanitarian workers or beneficiaries, or the inability to ensure compliance with the humanitarian principles.

Procedure

In case the UN Agency wants to terminate the Agreement, it shall do so by formally notifying the Commission before the termination is due to take effect:

  • the reasons;
  • the date on which the termination shall take effect.

Termination By the Commission

The Commission may decide to terminate the Delegation Agreement in the following circumstances:

  • if the UN Agency or the Sub-delegatees undergo legal, financial, technical, organisational changes likely to substantially affect in a negative way the implementation and management of the Action or call into question the decision by which the EU contribution is awarded;
  • if the UN Agency or the Sub-delegatees fail to fulfil a substantial obligation incumbent on it under the terms of the Agreement;
  • in the event of force majeure, or in the event of a suspension of the implementation of the Action, where the suspension lasts longer than one third of the implementation period of the Action or where the necessary modifications to the Agreement would call into question the decision of awarding the grant;
  • if the UN Agency or the Sub-delegatees are bankrupt, being wound up, or subject to any other similar proceedings;
  • if the UN Agency, the Sub-delegatees or any related person (i.e. any natural person which has the power to represent the UN Agency or to take decisions on its behalf), have been found guilty of grave professional misconduct proven by any justified means;
  • if the UN Agency or the Sub-delegatees is not in compliance with its obligations relating to the payment of social security contributions or the payment of taxes in accordance with the applicable legal provisions
  • if the UN Agency, the Sub-delegatees, or any natural person that has the power of representation or to take decisions on its behalf, has intentionally or by negligence committed a substantial irregularity in performing the Agreement
  • in the event of fraud, corruption or any other illegal activity performed by the UN Agency or the Sub-delegatees to the detriment of the EU's financial interests;
  • if the Commission has evidence that the UN Agency, the Sub-delegatees or any natural person that has the power to represent it, are guilty of misrepresentation or submit false or incomplete statements to obtain the EU contribution or provide reports that do not reflect reality to obtain or keep the EU contribution without cause;
  • if the UN Agency or the Sub-delegatees committed any of the failings that, according to the Article 16.1. of the General Conditions, give rise to a suspension.
  • where the Commission is not in the position to approve the Final Report presented by the UN Agency as it does not comply with the standard reporting requirements
  • if the UN Agency fails to submit the required information as soon as possible, and at the latest within 30 calendar days following the receipt of the request and fails to take measures to address the situations of conflict of interests as described in the Article 7 of the General Conditions.

The grounds for termination also apply, mutatis mutandis, to any known actions committed by the Implementing Partners, contractors or staff of the UN Agency to the extent that they are related to the implementation of the Action and have not been the subject of any appropriate remedial action by the UN Agency.

Procedure

The Commission shall notify the UN Agency of its intention to terminate the Agreement, specifying the reasons thereof, and inviting the UN Agency to submit observations within 15 calendar days from the receipt of the notification.

If the UN Agency submits observations, the Commission shall notify of its decision on the termination.

If the Commission decides to terminate the Agreement despite the observations submitted by the UN Agency, the termination shall take effect on the date of receipt of the termination decision’s notification.

If no observations have been submitted, the termination shall take effect 15 calendar days following the notification by the Commission of the intention to terminate.

Effects of termination

In case of termination of the Delegation Agreement, payment by the Commission shall be limited to the amount determined:

  • on the basis of the eligible costs incurred by the UN Agency;
  • on the basis of the actual level of implementation of the Action on the date when the termination takes effect.


In any case, the provisions of the Agreement shall continue to apply after the termination, to the extent necessary to allow an orderly liquidation of the Agreement.

The UN Agency shall be entitled to payments only for the part of the Action carried out; furthermore, it will be entitled to reimbursement of legal commitments it entered into for implementing the Action and before receiving the written notice on termination and which the UN Agency cannot reasonably terminate on legal grounds. The Commission shall recover the remaining part.

From the date when the termination takes effect, the UN Agency shall have 3 months to produce a Final Report. If no Final Report is received within this time limit, the Commission may recover any amount already paid.

In case the Commission is terminating the Agreement because the UN Agency has failed to produce the Final Report even after a reminder, following the termination, there shall be no additional time period for the UN Agency to produce a Final Report and the Commission shall recover any amount already paid.

In Any case neither Party shall be entitled to claim compensation because of a termination by the other Party.

End date of the IMDA

Unless the Agreement is terminated earlier following the above-mentioned procedures, it shall end by

  • the date of the payment of the balance by the Commission or
  • the date when the UN Agency repays any amounts paid in excess by the Commission.
  • 18 months after the end of the Implementation Period as defined in Article 2.2 of the Delegation Agreement (if there is no final payment by the Commission or final repayment by the UN Agency) or
  • the date of completion of the dispute settlement procedure, if any.


References & useful links