Multi-donor / Full funding

As stated in the Financial Regulation, funding humanitarian actions has to be done on a “cost-sharing” basis between DG ECHO and its partner organisations. This is the rule foreseen by the EU financial regulation and - concerning IOs – is implemented through the Multi-donor modality.

When establishing the rate of financing for the Action, the Commission takes into account other factors,such as the urgency of the Action, the availability of other donors and any other relevant circumstances, having due regard to the respect of the core humanitarian principles.

Multi-donor Actions

A Multi-donor Actions is an Action implemented by a UN Agency or an Internatinal Organization and where the EU funds are pooled with those of at least one other donor, that can be even the partner itself.
The Article 1.5 of the Agreement will report if the Action is a Multi-donor Action or not.
In case of Multi-donor Action, the General Conditions foresee the application of several specific rules such as:

  • The IOs may be allowed to manage EC contributions in accordance with their own regulations and rules based on the understanding that these conform to internationally accepted standards as regards accounting, audit, control and procurement procedures.
  • The IOs are exempted from the obligation related to the procurement of equipment and goods and to their management at the end of the Action;
  • The IOs are allowed to follow their own rules for the publication of the information on procurement and grants award, provided they ensure due observance of the requirements of proportionality, confidentiality and security
  • Pending payments corresponding to costs incurred during the Action do not have to be paid before the submission of the Final Report nor to be listed in the Final Report together with the estimated date of payment;
  • Where the project or programme lasts longer than the implementation period of the Agreement, the Commission may request the Final Report of the entire project or programme once available.


Full Funding

In some exceptional circumstances, ECHO may finance the entire cost of the action. The full-funding can be an option in some specific cases, for example:

  • the Action is urgent
  • there is no availability of other donors
  • the Action is considered a priority by ECHO

In case of request for full financing, the IOs must be able to duly justify the reasons in section 10.4. of the Single Form.

For full-funded Actions, the Proposal and Reports submitted will follow the normal rules for Actions subject to full-funding.

Furthermore, if the Action is full-funded, the UN Agency will publish, on an annual basis, on its internet website: the title of the project, nature and purpose of the project, name and locality of the Implementing Partner, and amount of the project for all grants financed by the EU.

Pre-financing

An amount of 80% of the European Union's contribution to the Action shall be given as pre-financing.

The process for the initial pre-financing payment will be launched automatically by the Commission upon receipt of the signed Agreement and the partner does not need to submit any request. The Commission shall make the pre-financing payment to the partner within 30 calendar days following receipt of the signed Agreement.


References & useful links