Common use of Modification of the Project Clause in Contracts

Modification of the Project. 1. With the exceptions stipulated in paragraph 3 of this article, any modifications of the Project shall be subject to the Financial Mechanism Committee’s prior written approval. Before submitting the proposed modifications, the Focal Point shall approve them and confirm that they are necessary and/or suitable for the effectiveness of the Project. 2. Any such modifications may require a new appraisal prior to being accepted or rejected. 3. Modifications of the Project do not need an approval of the Financial Mechanism Committee if they do not affect the scope, objectives, purpose, or results of the project, and the financial impact is limited to: (a) changes in any of the reporting periods for the Project Interim Reports scheduled in the Project Implementation Plan, (b) a transfer between budget headings involving a variation of 15% or less of the amounts in the latest approved Project Implementation Plan under each relevant heading, or, (c) a transfer between project activities involving a variation of 15 % or less of the amounts in the latest approved Project Implementation Plan for such activity, 4. Notwithstanding paragraph 3, modifications that result in an increase of management costs will always require a prior approval of the Financial Mechanism Committee. of the Project in order to ensure that it is in compliance with the Grant Agreement.