CHAPTER IIMinimum requirements to be included in PPP agreements funded by F1European Structural and Investment Funds F1support for rural development and support under Regulation 508/2014 (Article 64(4) of Regulation (EU) No 1303/2013)

Article 4Escrow account

With regard to the escrow account referred to in Article 64(2) of Regulation (EU) No 1303/2013, the PPP agreement shall contain the following requirements:

  1. (a)

    where appropriate, the criteria for the selection of the financial institution where the escrow account is to be opened, including requirements regarding its creditworthiness;

  2. (b)

    the conditions under which payments from the escrow account can be made;

  3. (c)

    whether the public law body that is a beneficiary may use the escrow account as collateral/security for the performance of its or the private partner's obligations under the PPP agreement;

  4. (d)

    the obligation for the holders of the escrow account to inform the managing authority, upon its written request, about the amount of funds in the escrow account disbursed and the balance of the escrow account;

  5. (e)

    rules on how the remaining funds in the escrow account shall be disbursed when the escrow account is closed due to a termination of the PPP agreement.

Article 5Reporting and audit trail

1.

The PPP agreement shall contain provisions on the establishment of a reporting and document retention mechanism. This mechanism shall contain the same reporting and document retention obligations as those of the beneficiary who incurs and pays himself for expenditure that is eligible under Article 65 of Regulation (EU) No 1303/2013.

F22.

The PPP agreement shall include procedures to ensure the adequate audit trail as set out in Article 25 of Commission Delegated Regulation (EU) No 480/20142. These procedures shall in particular allow for the reconciliation of the payments incurred and paid by the private partner for the implementation of the operation with the expenditure declared by the beneficiary to the Managing authority.

F3Article 6Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.