Pre-financing

November 19th, 2007 — fp7discussion

The new Financial Guarantee Scheme is FP7 seems to be a good thing. But if the Commission keeps back 5% of the fuding, that presumably means we get only 75% up front, not 80% as before. So then we have a potential cash-flow problem in the project. Is that right? Or have I misunderstood it?

Posted in Differences between FP6 and FP7, Financial viability, guarantees.

3 Responses to “Pre-financing”

  1. fp7discussion Says:
    October 16th, 2007 at 7:52 pm

    I believe that the Commission has not yet decided what to do about this, but they seem to be thinking about raising the pre-financing level to 85%, then retaining 5%. So you would then get 80% up front, just like now!

  2. RS Says:
    November 26th, 2007 at 12:17 pm

    As far as I know, the pre-financing has been increased up to a 160% of the foreseen costs of the first reporting period (normally 1 year). So the money the participants will recieve will be this quantity minus the 5% of the total EC contribution for the Guarantee Fund.

  3. Paul Drath Says:
    November 30th, 2007 at 6:24 pm

    RS is generally correct: the default for the first payment is 160% of the average EC contribution over the full project duration, for projects with a duration above two years. As usual, the EC can vary this and will give you the figure during the contract negotation. In addition, there is a retention of 10%, payable after contract completion. The 5% contribution to the guarantee fund will be refunded at the same time, assuming the fund has not incurred a financial loss.

Leave a Reply

You must be logged in to post a comment.

« Contract Negotiations

Overhead Costs »