PHARE Implementing Agency within the Ministry of Regional Development and Public Works believes that by virtue of the text of the aid contract and by virtue of the ownership of the funds for co-financing on part of the project users

PHARE Implementing Agency within the Ministry of Regional Development and Public Works believes that by virtue of the text of the aid contract and by virtue of the ownership of the funds for co-financing on part of the project users, the reasoned conclusion to be drawn, is that the payment to suppliers may be carried out under the following scheme: 1. Upon request by the suppliers on the basis of a concluded contract, the beneficiaries may submit an advance payment up to 50 per cent of the price of the equipment to be bought, i.e. to the amount of their own financing. That advance payment is carried out prior to the supply of the equipment in compliance with the contract concluded between the beneficiary and the supplier. The payment is accounted by the respective invoice which serves for release of the requested funds from the ESCROW account. 2. Upon supply of the equipment, signing the protocol for submission and approval, and issuance of an invoice by the supplier, the supplier will receive 90 per cent of the grant which is specified in Art. 3.2 of the Aid Allocation Contract between the beneficiary and the MRDPW. The other 10 percent of the grant will also be allocated after the expiration of the warranty period. When the offer of the supplier, which is indicated in the contract between him and the beneficiary, differs from Art. 3.1 of the Aid Allocation Contract, an alignment will be made so as to preserve the percentage ratio of grant to own financing as stipulated under Art. 3.2 of the Aid Allocation Contract. PR & International Relations Directorate