Financing Phase

[accordion] [tab title=”What are main characteristics of the financing phase?”] During the financing phase, the formal contract is put into place. Project proposals are approved by financing committees and the official relationship with the implementing agency is established in a memorandum or financing agreement. Calls for tender are often put out with regard to the technical assistance components of a project. Financing procedures are agreed upon by the contracting parties. In EU terms, the contract is signed with the beneficiary institution, which often equates to the consulting company or implementing agency.
[/tab] [tab title=”What is a financing agreement?”] A financing agreement is a contract between the donor and the organisation responsible for the implementation of the project. It summarises the key chapters of the financing proposal and sets out administrative procedures.
[/tab] [tab title=”What problems commonly arise during the financing phase?”] Delays in releasing funds are the biggest and most common challenge during this phase. Delays tend to crop up when the proposal triggers fundamental doubts about the quality of the implementation plan, the credibility of the beneficiary and the capacity of the implementing agency to implement what is required.
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