Memorandum of Understanding between the European Community and the Republic of Latvia on Latvia's participation in the Community programme for the promotion of energy efficiency (SAVE) (1998 to 2002)

THE COMMISION OF THE EUROPEAN COMMUNITIES, hereinafter referred to as "the Commission", on behalf of the European Community,

of the one part, and

THE GOVERNMENT OF THE REPUBLIC OF LATVIA, on behalf of the Republic of Latvia, hereinafter referred to as "Latvia",

of the other part,

Whereas

1. Decision No 1/2002 of the EU-Latvia Association Council of 12 February 2002 establishes the general principles for the participation of Latvia in Community programmes, leaving the Commission and the competent authorities of Latvia to determine the specific terms and conditions, including financial contribution, with regard to such participation in each particular programme,

2. The multiannual programme for the promotion of the energy efficiency (SAVE) (1998 to 2002) was established by Decision No 647/2000/EC of the European Parliament and of the Council of 28 February 20001.

HAVE AGREED AS FOLLOWS:

Article 1

Programme

Latvia shall participate in the multiannual programme for the promotion of energy efficiency (SAVE) (1998 to 2002), (hereinafter called "the Programme"), in accordance with the conditions laid down in

Decision No 1/2000 of the EU-Latvia Association Council of 12 February 2002 establishing the general principles for the participation of Latvia in Community programmes, and under the terms and conditions referred to in Annex I and Annex II of this Memorandum of Understanding.

Article 2

This Memorandum of Understanding shall apply for the duration of the Programme, starting from 1 January 2001. Nevertheless, should the European Community decide to extend the duration without any substantial change within the Programme, this Memorandum would also be extended correspondingly and automatically if no Party denounces it.

Annexes I and II form an integral part of this Memorandum of Understanding.

This Memorandum of Understanding may only be amended in writing by common consent of the parties.

This Memorandum of Understanding shall take effect from 1 January 2001.

1 OJ L 79, 30.3.2000, p. 6)

Annex I

Terms and conditions with respect to participation in the Programme

1. Latvia shall participate in the activities of the Community programme for the promotion of energy efficiency (SAVE) in conformity with the objectives, criteria procedures and deadlines as defined in Decision No 647/2000/EC of the European Parliament and of the Council of 28 February 2000.

2. The terms and conditions applicable to the submission, assessment and selection of applications by eligible institutions, organisations and individuals of Latvia shall be the same as those applicable to eligible institutions, organisations and individuals of the Member States of the European Union.

3. To participate in the Programme, Latvia shall pay every year a financial contribution to the General Budget of the European Union according to the modalities laid down in Annex II.

4. The financial contribution of Latvia in respect of its participation and implementation of the Programme shall be added to the amount earmarked each year in the General Budget of the European Union for commitment appropriations to meet the financial obligations arising out of different forms of measures necessary for the execution, management and operation of the Programme. Part of that financial contribution may be financed under the relevant Community external aid instrument, if Latvia so requests.

5. One of the official languages of the Community shall be used for the procedures related to requests, contracts and reports, as well as for other administrative aspects of the Programme.

6. Without prejudice to the responsibilities of the Commission and the Court of Auditors of the European Communities in relation to the monitoring and evaluation of the Programme, the participation of Latvia in the Programme shall be continuously monitored on a partnership basis involving the Commission and Latvia. Latvia shall submit to the Commission relevant reports and take part in other specific activities provided for by the Community in the context of this Programme.

Annex II

Rules governing the financial contribution of Latvia in the multiannual programme for the promotion of energy efficiency (SAVE)

1. The financial contribution to be paid by Latvia to the General Budget of the European Union to participate in the Programme shall be the following:

- EUR 35 792 for the year 2001

- EUR 35 792 for the year 2002

2. The contribution of Latvia shall cover costs related to the preparation, feasibility, development and execution of the projects of common interests, as well as for the development and implementation of horizontal measures as foreseen in the Programme.

3. Travel costs and subsistence costs incurred by representatives and experts of Latvia for the purposes of taking part as observers in the work of the committee referred to in Article 6 of Decision No 647/2000/EC of the European Parliament and of the Council of 28 February 2000 or other meetings related to the implementation of the Programme shall be reimbursed by the Commission on the same basis as and in accordance with the procedures currently in force for representatives of the Member States of the European Union.

4. The Financial Regulation applicable to the General Budget of the European Union shall apply to the management of the contribution of Latvia.

5. When this Memorandum of Understanding takes effect and at the beginning of each subsequent budgetary year, the Commission shall send to Latvia a call for funds corresponding to its contribution of the costs covered by this Memorandum of Understanding.

6. That contribution shall be paid in Euro to an Euro denominated bank account of the Commission.

7. Latvia shall pay its contribution to the annual costs in accordance with the call for funds request no later than three months after the date of the call. Any delay in the payment of the contribution shall give rise to the payment of default interest by Latvia on the outstanding amount from the due date. The interest rate shall be the rate applied by the European Central Bank to its main refinancing operations in Euro on the due date, increased by 1.5 percentage points.

In case of a delay in the payment of the contribution by Latvia, the Commission may also suspend payments to Latvia's beneficiaries. In case the delay in the payment of the contribution is such that it may significantly jeopardise the implementation and management of the Programme, participation in the Programme of Latvia for the concerned year may be suspended by the Commission.