Guidelines for applications for grants for peace and reconciliation initiatives in the Western Balkans, item 164.71 of the government budget

Grant scheme rules for peacebuilding and statebuilding projects in the Western Balkans, national budget chapter 164, item 71.

1 The purpose of the grant scheme

The main purpose of the scheme is to promote peacebuilding and statebuilding in the Western Balkans. 

The targets of the scheme are defined more closely in the national budget each year in accordance with the Government’s priorities for Norwegian policy for and assistance in  the region. In addition, guidelines may be given concerning the focus of assistance to the Western Balkans in strategy documents connected to the countries or priority areas in question, as well as in the Government’s action plans for the various priority areas.

Emphasis is placed on providing scope for changing priorities during the budget year with a view to responding to sudden changes in the situation in the region.

2 Target groups of the grant scheme

The aim is that the assistance should be of use to all levels of society in the Western Balkans. Most often, target groups will be institutions and organisations in the public sector or civil society in the Western Balkans, as well as identified users of these institutions/organisations. However, ethnic minorities, children, young people and women are also particularly important target groups. The target group should be specified for all projects funded under the scheme.

3 Performance criteria

The Government’s assistance is intended to facilitate measurable progress in the countries’ peacebuilding and statebuilding processes. Such progress may be measured in terms of the headway made in achieving the countries’ political goals of closer EU and NATO integration, or closer regional cooperation. However, it may also be measured on the basis of assessments of the various focus areas in status reports from international organisations such as the EU, NATO and the UN, as well as NGOs.

The Norwegian funds make up a small proportion of the total allocations provided under the scheme, and the social effect can also be influenced to a considerable extent by other factors. This makes it difficult to measure results at the grant scheme level. The aim is therefore to examine general progress within the area, and how the Norwegian assistance may have contributed to this.

However, the relevance of the projects to the purpose of the grant scheme must be documented. Clear targets and indicators for achieving these targets must be drawn up at project level. The total results achieved for the target group should give an indication of performance at the societal level.

As far as possible, the unit responsible for the scheme is in charge of assessing performance.

4 Allocation criteria

4.1 Main criteria

• Projects that help the recipient country to meet EU or NATO requirements that are necessary for further Euro-Atlantic integration will be given priority.
• Projects that promote other regional cooperation will be given priority.
• Projects that promote the inclusion of ethnic minorities and other minority groups, women and children/young people will be considered important.

4.2 Performance and sustainability

• The project’s targets must be results-oriented and realistic.
• There must be a clearly specified time-frame for Norwegian assistance to the project, with a view to ensuring self-sustainability after Norwegian/international assistance comes to an end.
• Providing assistance for peacebuilding and statebuilding is a complex process. Importance will be attached to applicants’ insight into regional issues and their ability to document relevant qualifications and other expertise, including results from previous efforts.
• The project should be based on a sound understanding and analysis of environmental and gender issues.
• The project should be in aligned with the main priorities of the recipient country.
• The project should enjoy strong local support. Applicants must be able to document that they have established close contact with a local cooperation partner or partners in the country in question.

4.3 Budget and financing

• Priority will be given to projects that are able to generate local or national involvement or funding. Applicants should consider how the project fits with other actors’ activities in the same field, and projects that have the potential to create synergies will be given priority.
• Projects where the applicant can provide an independent contribution will be given priority.
• When providing assistance to civil society organisations, projects that have low administrative costs and for which the majority of the amount applied for will be used by a local partner will be given priority.
• If most of the project activities are to be carried out by one or more local partners, the applicant must document the role he or she can play in the project and the added value he or she can bring to it.
• Projects whose overheads exceed 5% of the total budget will only receive support in exceptional cases, and applicants will be required to explain why this is necessary.

4.4 Projects not covered by the grant scheme

• financing the export or import of goods or services;
• marketing goods or services;
• operating costs beyond initial costs in the start-up phase;
• establishing activities in Norway;
• developing or testing new technology;
• transport of relief supplies.

General technical cooperation without concrete development goals will usually not be granted funding. Funding will only be provided for study trips, seminars and the purchasing of equipment if these are part of a larger development project, and not a goal in themselves.

4.5 Grant recipients

All actors in the Western Balkans who can help to further the targets of the scheme can potentially be grant recipients. Recipients of grants can therefore come from the public or private sector, civil society or the media, and they can be Norwegian, international or from the region itself.

4.6 Cross-cutting considerations

As far as possible, gender equality, women’s rights and environmental considerations must be taken into account in all projects, throughout the project cycle. In this connection, reference is made to the Government’s action plans for environment in development cooperation, for implementing UN Security Council resolution 1325 on women, peace and security, and for the fight against human trafficking. Some important principles here are the use of gender-disaggregated statistics, women’s participation, and the inclusion of indicators that reveal positive or negative developments for women and/or gender equality as a result of the project. The application must discuss the balance between women and men in recruitment and training in connection with the project.

4.7 Parameters and opportunities for redefining these

Geographical – and in some cases thematic – parameters for allocations are usually set in an annual allocation memorandum approved by the Ministry’s political leadership. The Ministry may redefine the geographical parameters in the course of the budget year, in order to meet political and development assistance policy targets. 

5 Information for potential applicants

5.1 Information for potential applicants

The grant scheme is announced every year on www.mfa.no, in Norwegian and English. The announcement should be made in the autumn, after the national budget has been approved in the Storting, but preferably no later than 15 November.

In addition to the announcement of the opportunity to apply for grants under the scheme, potential Norwegian applicants who are active in the region are invited to an annual information meeting. 

The Norwegian embassies in the region should provide information about the scheme on their websites and in their contact with potential applicants.

The recipient country should announce bilateral project cooperation under the scheme in accordance with its national procedures.

6 Processing of applications

6.1 Deadlines and formal requirements for applicants

Application information and deadlines are given in the annual announcement.

The information provided in the application must be complete and correct. Applicants applying for funding for different projects must send separate applications for each project.

A full, detailed budget and financing plan, including an overview of funding from other sources, must be submitted. The estimated working hours, and details of any travel and related costs must be indicated in the budget.

The applicant should seek to limit overhead costs. These are costs that are not directly linked to project implementation. For instance, communication costs (telephone calls, postal charges, Internet use), accounting (revised annual report), the organisation’s rent and other operating costs, internal controls, and fundraising activities.

First-time applicants are requested to submit the organisation’s annual report/annual accounts along with their application. Applicants who are bringing a new partner into the project should include the cooperation agreement with the application. 

Applicants should be prepared to document their procedures for anti-corruption efforts, internal control and procurement.

The cheapest form of transport must used if the project involves any travel. Alternatives to hotel accommodation must be sought in the event of longer stays.
Funding can be given for projects with a duration of up to three years, provided that no changes are made to the Storting’s annual allocation to the relevant item in the national budget, or to the political priorities for the scheme. In addition to the total amount applied for, the amount for each budget year must be specified in the application.

6.2 Processing of applications by the Ministry of Foreign Affairs

• The application is registered on receipt.
• The application is assessed in relation to the general parameters and criteria for the scheme.
• Once the application has been processed, the applicant will receive written notification of the decision.
• If the application is successful, a letter of allocation is prepared in two copies. This letter sets out any special conditions. Both copies of the letter must be signed by someone authorised to bind the grant recipient. One copy is retained by the grant recipient, while the other must be returned to the Ministry within one month.
• If the application is unsuccessful, the applicant is notified of the reasons for this in writing.

Applications are processed throughout the budget year. Even if applications are received before 15 February, the Ministry reserves the right to postpone the processing of some applications to the second half of the budget year, so as to maintain flexibility with a view to responding to unexpected situations in the region.

The Ministry can let other institutions/organisations manage parts of the grant scheme, in response to an application or following a call for offers. Any other grant managers must be able to fulfil the Minstry’s obligations with respect to the Public Administration Act and the Freedom of Information Act in managing the funds.

6.3 Risk and performance

In the assessment of applications, great importance will be attached to the project’s ability to achieve concrete, measurable results in accordance with the objectives of the scheme. The applicant  must have identified relevant risk factors and devised countermeasures.

In the case of first-time applicants, relevant references should be provided (other donors, cooperation partners known to the Ministry), and the embassy in the country concerned will be asked to assess the application.

In the case of previous applicants, the final report for completed projects must have been received and approved before any new grant can be awarded.

7 Follow-up and control

7.1 General reporting requirements 

The final report and audited accounts for the project must be sent to the Ministry of Foreign Affairs as soon as possible and no later than six months after the project’s completion. It is important that the final report and the accounts are submitted together, not separately.

The project accounts are to follow the same format as the budget in the grant application. An auditor’s report ensuring an adequate degree of accuracy in accordance with RS 800 will be required.  The Ministry of Foreign Affairs can waive this audit requirement for projects that are very limited in scope. Grant recipients subject to Norwegian public sector audit are similarly not required to submit audited accounts.

If the implementation of the project is delayed in relation to the application, a status report must be submitted well before the original end date for the project. Grant recipients must without undue delay report any indications of corruption or misuse of Norwegian funds that they become aware of during the implementation of the project. Specific requirements as to the content of the final report and other reporting/follow-up requirements will be sent with the letter of allocation.

7.2 Follow-up of multi-year projects

For multi-year projects a status report on the implementation of the project, including a financial report, work plan and budget for the coming year, is to be submitted by 15 February each year or by another date specified in the agreement. This will provide a basis for the annual meeting and for the Ministry to approve the continuation of the project.

The Ministry of Foreign Affairs convenes the annual meeting at which the following items will be discussed:

• Progress report including financial report
• Work plan and budget
• Follow-up measures until the next annual meeting, progress reports, evaluation/review, project visits (if relevant)

The conclusions of the meeting are to be recorded in the “Agreed Minutes”, the first draft of which is to be drawn up by the grant recipient.

7.3 Appeals procedure 

Individual decisions regarding project funding may be appealed against in accordance with Chapter VI of the Public Administration Act. Appeals must be submitted in writing to the Ministry or organisation that made the decision, within three weeks from the date on which notification of the decision was received. The parties involved have the right to inspect documents in the case, in accordance with sections 18-19 of the Public Administration Act.  Appeals should be based on the Ministry’s grounds for its specific decision.

7.4 Disbursement of funds, recovery of interest, reimbursement of unused funds

Grants will be disbursed in arrears once a year to cover accrued expenses or at the request of the recipient, in advance. For grants of over NOK 5 million a year the approved amount will be divided into two payments in accordance with the grant recipient’s documented expenditure.

A separate account should be set up for all grants received from the Ministry of Foreign Affairs with the exemption of Norwegian government recipients that are part of the state guarantee scheme.. Unused funds and interest earned worth in total more than NOK 1000 are to be returned to the Ministry after the project is concluded.

Interest earned on grants to multi-bilateral projects, multi-donor projects, state-to-state assistance, and support to international and local non-governmental actors can be used for projects provided for in the agreement between the Ministry and the recipient concerned.

For Norwegian government recipients reimbursement rather than debit authorisation is preferred.

7.5 Other control measures

The Ministry of Foreign Affairs or the embassy concerned will regularly inspect the projects in the field. The frequency of these inspections will be determined on the basis of need and risk.

Where there is a suspicion of irregularities the question of whether an audit and possibly an administrative review should be conducted without prior notice will be assessed.

Where there is reasonable suspicion of breach of contract, all funds to the recipient will be frozen and the necessary investigation initiated. The total or partial refund of funds may also be required if the recipient does not comply with the conditions of the grant, including if there is insufficient documentation as to how the funds have been used.

8 Evaluations and reviews

Norad’s Evaluation Department is responsible for planning and conducting independent evaluations of activities funded under the Norwegian development budget. Evaluations may be carried out of the whole grant scheme or of parts of it, or of cross-cutting themes, common objectives and different countries that are covered by several grant schemes. The Ministry will also participate in joint evaluations and reviews with other donor organisations, the UN system and partner countries.

In addition the Ministry seeks to initiate one to two evaluations each year of projects or groups of projects. The evaluations will be carried out by independent groups, if necessary following an external tender process.

In addition 3–4 internal reviews will be carried out at the Ministry.