Guidelines for applications for grants for peace and reconciliation initiatives in the Western Balkans, item 164.71 of the government budget
11/02/2008 :: General framework
The main objective of the grant scheme is set out in the Ministry of Foreign Affairs’ budget proposal for each budget year.
Excerpt (translated from the Norwegian original text):
The overall objective of the assistance is to promote peace, reconciliation and democracy in the region. The main purpose of Norway’s project assistance to the countries in the Western Balkans is to continue supporting processes related to regional stabilisation and Euro-Atlantic integration. Support for economic, political and social reform processes, institution-building, reform of the defence, security and justice sectors, and business development is being given particular emphasis.
The following areas will be given priority:
• institution-building and specific reform efforts in connection with the implementation of the European Union’s Stabilisation and Association Process
• the development of functioning states governed by the rule of law through reform and strengthening of the judicial system and measures to combat organised crime and human trafficking, as well as support for measures to strengthen the countries’ cooperation with the International Criminal Tribunal for the former Yugoslavia.
• assistance to internally displaced persons and the return of refugees
• targeted, long-term efforts to support reconciliation processes and inter-ethnic dialogue. The implementation of UN Security Council resolution 1325 on women, peace and security is central to these efforts
• the development of viable democracies and the promotion of international human rights standards. This includes, among other things, strengthening women’s right to political and economic participation, their education and training opportunities, and their opportunities to engage in paid work
• the development of the private sector is important for creating a basis for stronger economic development in the region. Positive experiences indicate that a strong focus should be maintained on business development
• environment-related energy projects
• security sector reform
• mine clearance
Ethnic minorities, children, young people and women will continue to be important target groups for project cooperation.
The complete text (in Norwegian) can be found here: St.prp. 1 2007/2008.
More specific priorities for the geographical and thematic distribution of the available funds are defined at the beginning of each budget year, but flexibility is maintained throughout the budget year so that rapid changes in the situation in the region can be responded to. A part of the funds is earmarked for bilateral project cooperation with some of the countries in the region, and separate national application procedures apply to these funds. Norway’s foreign service missions in Zagreb, Sarajevo, Belgrade, Pristina and Skopje also administer separate funds for smaller projects aimed at developing civil society. Applications for projects with an annual budget of less than NOK 200 000 should be made to the missions.
General criteria for assessing applications
The project must be in keeping with the objectives of the grant scheme as set out in Proposition No. 1 to the Storting (see above). An important consideration will be to what extent the project accords with the main priorities of the recipient country. Priority will be given to projects that support reform processes that promote closer integration with Euro-Atlantic structures or other regional cooperation.
A further important consideration is to what extent the project enjoys local support. Priority will be given to projects that are also able to obtain funding from local or national sources. 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.
The project should have a timeframe of a certain length and a certain degree of continuity, and should be designed to become viable on its own within a short period of time, so that it can be continued without Norwegian public funding. Implementation of projects in the fields of peace and reconciliation and state-building is very demanding. The applicant must show a good understanding of the issues in the region, and have adopted clear, practicable goals for the project.
Applicants must be able to document that they have established close contact with local cooperation partners in the relevant country. The cooperation partner(s) must be informed of the basis on which the application was approved and the grant given, and these guidelines. The applicant must also be able to document relevant qualifications/expertise, including the results of previous work, and also the value that the applicant will add to the project beyond the mere transfer of funds to the local partner(s).
Funds for peace and reconciliation projects in the Western Balkans are determined by the Storting on a year-by-year basis. It is therefore not possible to provide guarantees concerning the continuation of projects beyond the budget period in question. However, grants can be made for projects lasting up to three years subject to the Storting’s annual approval of the relevant item in the government budget. In such cases, the application must specify, in addition to the total amount, the amount requested for each budget year. Disbursements will be made annually on the basis of the progress report and accounts submitted, which are normally to be presented and discussed at an annual meeting, at which the grant recipient also has to submit a work plan and a budget for the coming year.
A complete and detailed budget and financial plan must be submitted, including an overview of financing from other sources. The anticipated number of working hours and trips, and the costs related to these, must be specified in the budget. The grant recipient should seek to limit administrative costs. Projects with administrative expenses exceeding 5% of the total budget will only receive support in exceptional circumstances. Projects to which the grant recipient is contributing own funds or efforts will be given priority. The cheapest form of transport must be used in connection with travel. Alternatives to hotel accommodation must be sought for longer stays.
Gender equality and women’s rights, as well as environmental considerations, must be taken into account in all types of projects. In this connection, reference is made the Government’s Action Plan for Environment in Development Cooperation, the implementation of UN Security Council resolution 1325, and the fight against human trafficking. The balance between women and men when recruiting to positions and training programmes in connection with the project must be discussed in the application.
Support should not be expected for the following activities:
• financing the export or import of goods or services
• marketing goods or services
• operating expenses beyond initial costs in the start-up phase
• establishing activities in Norway
• developing or testing new technology
• support for the transport of emergency relief shipments
Application process
As a general rule, the application form, including the budget template, must be used for all applications for support under this grant scheme. The form must contain complete and correct information. The application deadline is 15 February. Applications received after 15 February will only be considered during the second half of the year if there are available funds in the budget.
Applicants that apply for grants for several projects in different countries must submit a separate application for each project. Applications should, if possible, be submitted by email to post@mfa.no with a copy to s-vb@mfa.no. Applicants must use the attached application form: Application for grant
The following procedure applies to the processing of applications by the Ministry of Foreign Affairs:
• The application is registered on receipt.
• The application is evaluated in relation to the general framework and criteria of the scheme.
• Within a month after the expiry of the application deadline, the applicant is sent a provisional reply indicating when a final decision may be expected. 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 to respond to unexpected situations in the region.
• Once an application has been processed and a decision made, the applicant is informed in writing.
• If the application is successful, an allocation letter is prepared. This sets out any special conditions. The letter is prepared in two copies which must both be signed by a person 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 refused, the applicant is notified of the reasons in writing. The name of the executive officer dealing with the matter will be included in the letter.
Right of appeal
Individual decisions regarding project support may be appealed in accordance with Chapter VI of the Public Administration Act. Appeals must be submitted in writing to the Ministry of Foreign Affairs within three weeks of the date on which notification of the decision was received. The parties to the case are entitled to acquaint themselves with the documents in the case in accordance with sections 18 and 19 of the Public Administration Act. The appeal should be argued on the basis of the information on which the Ministry of Foreign Affairs has based its decision.
Disbursements – management of funds – accounts and auditing
Grants are generally paid in arrears once a year to cover expenses incurred. The grant may be paid out in advance if the grant recipient makes a reasoned request for this.
If the grant is to be paid out in advance, a separate bank account must be established for the project. Unused funds, as well as any interest received if this totals more than NOK 1 000, must be repaid to the Ministry at the end of the project.
Accounts must be kept in accordance with good accounting practice. It must be documented that the auditor’s report is based on the procedures set out in ISA 800 (Auditor’s Report on Special Purpose Audit Engagements). For smaller projects (grants of under NOK 100 000), the accounts may be certified by other means than an auditor’s report, for example by attestation by a person authorised by the organisation.
Grant recipients that are organs of the Norwegian State are not required to establish a new bank account for the project. Nor do they have to submit audited accounts, as their accounts are subject to control by the Office of the Auditor General of Norway.
If equipment, furnishings or buildings are transferred at the end of the project, the grant recipient and the purchaser must sign a transfer document that lists each item and its value. A copy of this document is to be enclosed with the final report.
Reporting
The final report and audited accounts for the project must be sent to the Ministry of Foreign Affairs as soon as possible, and at the latest six months after the end of the project. It is important that the final report and accounts are sent together, not separately. The requirements as to the content of the final report will be detailed in an enclosure to the allocation letter.
If the implementation of the project is delayed in relation to what was specified in the application, a status report must be sent in good time before the original end date for the project.
Annual meeting
If a project spans several years, an annual meeting must take place before 15 February every year. The basis for the discussion at the annual meeting is a project status report and the work plan for the following year. The Ministry’s approval for continuation of the project is based on the annual meeting.
Obligations of the grant recipient
The grant recipient is responsible to the Ministry of Foreign Affairs for ensuring that the grant is used in accordance with the objective, activities and budget set out in the Ministry’s allocation letter.
The grant recipient and cooperation partner(s) must ensure that the project is implemented in the best possible way.
Substantial changes in the main items of the budget, even if the total budget remains within its limits, may only be made with the prior written consent of the Ministry.
Unused funds and any repayable interest are to be returned to the Ministry of Foreign Affairs as soon as possible after the completion of the project.
The cooperation partner(s) must be informed of the basis on which the application was approved and the grant given, and these guidelines.
It is the responsibility of the grant recipient and, if applicable, any cooperation partner(s) to ensure that equipment, furnishings and personnel financed through the grant are properly insured wherever and whenever this is feasible.
The Ministry of Foreign Affairs must be informed immediately if there is any suspicion of irregularities in connection with the project, the use of the grant or in the grant recipient’s or any cooperation partner’s organisation.
Assessment of project implementation – internal and external audits
In accordance with section 10, second paragraph, of the allocation regulations and section 12 of the Act relating to the Office of the Auditor General, the Ministry of Foreign Affairs and the Office of the Auditor General are entitled to control that the grant is being used as intended. The Ministry will check and assess all information received. This information will also be taken into account when any new applications for support are considered.
The Ministry will, as required, undertake reviews, field inspections and external evaluations of individual projects and the grant scheme, particularly to evaluate the extent to which objectives have been achieved, as compared with those set out in the application and the reported results. The grant recipient is obliged to make reasonable contributions to such an evaluation at its own expense.
Other provisions
In the event of unsatisfactory project development or a breach of the conditions set out in these guidelines or in the allocation letter, or if the grant is mismanaged in some other way, the Ministry of Foreign Affairs reserves the right to stop further disbursements and require the repayment of all or part of earlier disbursements. From the moment the grant recipient receives notice of such measures, no payments may be made using grant funds without the specific approval of the Ministry.
The Ministry will disseminate information on the projects it supports. The projects will therefore be made publicly known unless a confidentiality agreement has been entered into.