Types of financing
IPA funds are implemented via the below types of financing:
Service contracts are meant for studies, technical assistance, and are also used for audits or communication services.
A study contract is a service contract concluded between a contractor and the contracting authority, which includes studies for the identification and preparation of projects, feasibility studies, economic and market studies, technical studies and audits.
A technical assistance contract is a service contract where the contractor is called on to play an advisory role, to manage or supervise a project, or to provide the expertise specified in the contract.
Supply contracts cover the purchase, leasing, rental or hire purchase (with or without option to buy) of products.
Works contracts cover either the execution, or both the execution and design, of works or a work related to one of the activities referred to in Annex II to Directive 2014/24/EU or the realisation, by whatever means, of a work corresponding to the requirements specified by the contracting authority exercising a decisive influence on the type or design of the work. A 'work' means the outcome of building or civil engineering works taken as a whole that is sufficient in itself to fulfil an economic or technical function.
Works contracts are usually concluded by the partner country with which the European Commission has a financing agreement (under indirect management).
A grant is a financial donation/non-commercial payment by the contracting authority from the general budget of the Union or the EDF given to a specific grant beneficiary to finance:
- - either an action intended to help achieve a Union policy objective (action grant);
- - or the operation (i.e. the running costs) of an entity which pursues an aim of general European interest and supports a European Union policy (operating grant)
The body(ies) signing a grant contract is known as the grant beneficiary(ies) and should not be confused with the partner country, the final beneficiary of the operation nor with the target group.
Twinning is a European Union instrument for institutional cooperation between the Public Administrations of EU Member States and beneficiary or partner countries.
Twinning projects bring together public sector expertise from EU Member States and beneficiary countries with the aim of achieving concrete mandatory operational results through peer-to-peer activities.
 For more detailed information, please refer to the Practical Guide on contract procedures for European Union External Action (PRAG) via https://ec.europa.eu/europeaid/work/procedures/index_en.htm_en
 More detailed information can be found at https://ec.europa.eu/neighbourhood-enlargement/tenders/twinning_en