In consideration of the pandemic caused by the coronavirus disease 2019 (COVID-19), the state of danger declared in Hungary, and the expected economic and social consequences of the situation, the NRDI Office notifies the beneficiaries of projects funded from the NRDI Fund in relation to 1) the extension of project durations, 2) mandatory commitments and monitoring indicators specified in the funding documents (hereinafter: Funding Agreement), and 3) compliance with certain deadlines set out in the Funding Agreement.

1) Extension of the duration of funded projects

Pursuant to Section 18 of Government Decree 85/2020 (IV. 5.) on the specific rules applicable in domestic and administrative affairs in a state of danger the duration of projects

• implemented until the termination of the state of danger and
• in progress when the state of danger was declared (11 March 2020) (the legal provision applies to projects that meet both conditions)

is extended with a period equal to the period of the state of danger.

The above provision also applies to projects for which the funding relationship was established in the period of the state of danger.

Please note that the measure creates an option (not an obligation) for beneficiaries to extend the duration of their projects. Beneficiaries will decide for themselves whether to take the option or stick to their original project schedule.

2) Performance of mandatory commitments and monitoring indicators

For some projects funded from the NRDI Fund, the call documents and the Funding Agreement prescribe mandatory commitments. The detailed terms of implementation, including in particular the performance of mandatory commitments, are regulated in the Funding Agreement and its annex, the Terms of Performance. The call documents and the Terms of Performance attach adverse legal consequences to any non-compliance with the mandatory commitments (divergence from the original commitments to an extent specified in the call documents), if such non-compliance is due to reasons attributable to the beneficiary.

If non-compliance with the mandatory commitments is not due to reasons attributable to the beneficiary and is clearly linked with the COVID-19 pandemic, such non-compliance will not result in any adverse legal consequences for the beneficiary.

In this case, please indicate any COVID-19-related change in the mandatory commitments in your next report to the NRDI Office together with reasons, in the form of a request for amendment.

According to the call documents and the Funding Agreement, beneficiaries are required to state certain monitoring indicators in their reports. This obligation to supply data will remain with the beneficiaries. If the monitoring indicators fall short of the original targets due to reasons not attributable to the beneficiary and such shortfall is clearly linked with the COVID-19 pandemic, the project will not be affected by any adverse legal consequences in terms of progress.

Again, in this case please indicate any COVID-19-related change in the monitoring indicators in your next report to the NRDI Office together with reasons, in the form of a request for amendment.

3) Extension of certain deadlines set out in the Funding Agreement

The deadlines set out in the Terms of Performance annexed to the Funding Agreement for

• submission of invoices and supporting documents based on the summary of invoices; and
• responses to deficiency notices in relation to
  partial and closing reports,
  professional maintenance and progress reports; and
  invoices and supporting documents based on the summary of invoices

are temporarily extended to 30 days by the NRDI Office.

The provisions in Section 3 above shall be deemed as a temporary unilateral amendment of the Funding Agreement (and its annexes) which sets out less strict rules for the beneficiaries compared to the provisions of the Funding Agreement (and its annexes). The provisions in Section 3 above may be applied for 90 days after the termination of the state of danger declared in Hungary in relation to the COVID-19 pandemic. Subsequently, the provisions of the Funding Agreement (and its annexes) affected by Section 3 above that were in effect before the publication of this notice shall take effect again, and such change shall not be deemed as an amendment of agreement.

National Research, Development and Innovation Office