Common use of Assumptions and Risks Clause in Contracts

Assumptions and Risks. The programme assumes that the beneficiary countries will maintain their efforts to ensure a high level of nuclear safety and to implement the recommendations of the June 2001 Council Report on Nuclear Safety in the Context of Enlargement. The Peer Review Status Report, established by the Council’s Atomic Questions Group and its ad-hoc formation Working Party on Nuclear Safety on 5 June 2002, found that candidate countries are clearly committed to fulfil the recommendations set out in the Council Report, both for nuclear power plants and other types of installations. The status report also noted that all candidate countries had accepted the recommendations. This programme assumes that the beneficiary countries will continue to pay sufficient attention and devote appropriate effort to implementing the supported projects also – where and when applicable – under the EDIS in a time frame reaching beyond accession. Whilst there are no identifiable risks inherent in the tasks to be fulfilled under the various projects, an overall risk to the programme is that continued nuclear safety assistance involves the danger to create dependency on this side of the beneficiary. Special regard has to be directed towards the way in which the beneficiary organisations will sustain the results of the projects. In the cases of regulatory assistance, emphasis needs to be laid on the value of transferring know-how to the recipient and avoiding the replacement of functions in the sphere of responsibility of the beneficiary organisation through activities of the contractor.

Appears in 3 contracts

Sources: Financing Memorandum, Financing Memorandum, Financing Memorandum