4.2.7 Pre-Authorisation Letter (PAL)

In order to save time and commence implementation immediately, some COs authorize partners through a pre-authorisation letter (PAL) to begin charging expenses up to a certain amount (usually start-up costs). The PAL can be signed immediately after having received formal approval from a donor, and is effective until the date of signing of the partnership agreement. Costs made in the start-up phase of the project will then be reimbursed under the resultant partnership agreement. Using a PAL is a good practise to speed-up the process and keep things moving during the start-up stage.

Annex 12.13 – Pre-Authorisation Letter (PAL) template