Financial support for municipal partnership projects between German and Ukrainian communities

German municipalities may apply for financial support to implement development policy projects under the Small Projects Fund (KPF).

The programme is implemented by the Service Agency Communities in One World (SKEW) of Engagement Global on behalf of and funded by the German Federal Ministry for Economic Cooperation and Development.

The Small Projects Fund aims to engage municipalities in new projects and partnership relations within the framework of municipal development policy. As a result, discussion on development policy is expected to be revitalised and deepened, the engagement of German municipalities strengthened, and the network of relevant stakeholders further supported. In addition, support will be provided for cooperation and inter-municipal dialogue, for example through professional exchange visits with countries of the Global South.

The Fund also seeks to provide German municipalities with opportunities to strengthen solidarity within their partnership relations in times of crisis, working together with partner communities to mitigate crisis-related emergency situations and reinforce local self-governance in addressing crises.

Within the framework of the programme, only specific categories of entities that meet the established requirements are eligible to submit applications.

Who may apply:

• administrations of German municipalities;
• district-level cities and the federal states of Berlin and Hamburg;
• German municipal enterprises established under public law (including municipal service providers);
• public-law institutions of municipalities;
• in the case of partnership projects, applicants must also comply with the requirements related to the partner country.

Requirements for partnership projects:

• the partner country must be listed by the Organisation for Economic Co-operation and Development (OECD) as a recipient of official development assistance;
• for certain higher-income countries or countries subject to EU sanctions, additional individual review may apply;
• in joint applications, one German municipality must act as the lead applicant and contractual partner.

Institutional requirements:

• the project must align with development policy objectives;
• where third parties (e.g. local initiatives or civil society organisations) are involved, they must demonstrate relevant expertise and capacity to implement the planned activities;
• overall responsibility for project management remains with the applicant municipality and cannot be delegated to third parties.

Additional conditions:

• joint applications by several German municipalities are permitted;
• other municipalities may participate as co-financiers or implementation partners;
• projects must demonstrate a sustainable development impact and long-term value.

The Small Projects Fund provides financial support to German municipalities for the implementation of initiatives within the framework of municipal development policy.

The level of funding depends on the type of project and may amount to:

• €1,000 to €20,000 for domestic projects implemented within the country;
• €1,000 to €50,000 for partnership projects, professional exchanges, solidarity initiatives, and crisis-response actions;
• up to €5,000 for transport costs within German-Ukrainian partnership projects.

The maximum project duration is up to 12 months, with completion required by the final date specified in the respective call.

Funding is provided on a co-financing basis:

• Up to 90% of the total eligible project costs may be covered by the Fund;
• At least 10% of the total budget must be contributed by the applicant and/or third parties;
• In-kind contributions may be recognized as co-financing, subject to compliance with the applicable regulations.

Administrative costs may be requested as a fixed lump sum of up to 7% of the eligible project costs.

Funding may cover costs directly related to the implementation and objectives of the project, including:

• activities within international municipal partnerships;
• initiatives supporting the implementation of the Sustainable Development Goals (Agenda 2030) at the local level;
• fair trade and sustainable procurement-related activities;
• professional exchanges, study visits, and internships;
• investment measures within partnership frameworks (subject to defined limitations);
• transport costs in German-Ukrainian partnership projects (within established limits).

Projects are expected to integrate principles of gender equality, inclusion, and alignment with relevant local and national development strategies.

The following are not eligible for funding:

• activities not related to municipal development policy;
• projects outside the legal mandate and responsibilities of municipalities;
• activities that duplicate already funded measures;
• expenditures not aligned with the thematic priorities and objectives of the program;
• goods purchased under other support programs (including within transport-related projects).

Within the framework of the programme, support is provided to projects aligned with municipal development policy and clearly linked to capacity development and institutional strengthening of partners.

1. Investment Measures

Funding may be granted to investment projects related to:

• restoration or modernization of infrastructure;
• strengthening the capacity of local administrations;
• capacity development measures (Capacity Development).

Eligible related costs may include:

• study visits and exchange activities;
• transportation expenses;
• materials and equipment;
• rental of premises for events;
• fees for experts and trainers.

2. Procurement and Transfer of Equipment

The programme supports the purchase of equipment necessary for project implementation, provided that it:

• responds to identified local needs;
• meets appropriate quality and technical standards;
• can be properly maintained and operated.

Transportation costs related to delivering such equipment may also be eligible.

3. Emergency Response Activities

Funding may cover the transport of goods required for:

• protection of the population;
• mitigation of the consequences of emergencies;
• support to Ukrainian partner communities.

4. Research and Conceptual Development

The programme may support:

• technical and scientific studies;
• development of strategies and policy concepts in the field of municipal development;
• impact assessments of projects (subject to compliance with programme requirements).

5. Training and Capacity-Building Measures

Eligible activities may include:

• seminars and workshops;
• short-term training programmes;
• professional capacity-building initiatives.

All related costs must comply with local standards and be adequately justified within the overall project budget.

Restrictions

• The purchase of land is not eligible for funding.
• Any land used for project implementation must be owned by the municipal partner or secured through a long-term usage agreement.
• Salaries of German municipal civil servants are not eligible for funding.
• All costs must be directly linked to project implementation and aligned with the programme’s objectives.

Applications are processed in the order they are received. Submission deadline — 10 weeks before the project start.

The maximum duration of projects cannot exceed 12 months, and they must be completed no later than December 31, 2026.

Registration in the system.

• Before submitting an application, the applicant must register in the project support software. If the implementing organization has not yet been registered, it must first complete the verification process.

Review of instructions.

• Applicants are advised to carefully review the project support software guidance and the brief instructions for submitting applications.

Eligibility verification.

• After a positive eligibility assessment of the organization, the applicant will receive authorization to submit the application.

Submission of the application.

• The application and all supporting documents must be submitted exclusively in electronic form via the project support software.
  All documents must be signed by an authorized representative of the municipality who has the legal right to sign.

Special requirement for professional exchange visits.

• If the project includes a visit intended solely for professional exchange, a Letter of Interest must be submitted in advance to the relevant department of the Service Agency “Communities in One World” (SKEW) before submitting the full application.

Review process.

• Applications are reviewed in the order in which they are received. Funding decisions are made in accordance with the requirements set out in the call announcement.

Additional requirement for Small Projects Fund applications.

• Applications under this component must be submitted no later than 10 weeks before the planned start of the project.

Under this grant programme, project proposals are assessed against clearly defined qualitative and strategic criteria to ensure alignment with the fund’s objectives.

Key evaluation criteria include:

• Relevance to development policy objectives – The project must clearly relate to municipal development policy and contribute to sustainable development, social and economic progress, and global responsibility.
• Alignment with thematic priorities – Proposals should address at least one priority area, such as:

1. International inter-municipal partnerships, particularly with municipalities in the Global South;
2. Implementation of the 2030 Agenda and the Sustainable Development Goals (SDGs) at the local level;
3. Promotion of fair trade and fair public procurement practices.

• Consideration of cross-cutting principles – Projects are expected to integrate gender equality, inclusiveness, and conflict-sensitive approaches, and to align with relevant local and national development strategies.
• Institutional mandate and feasibility – Activities must fall within the legal responsibilities and operational mandate of German municipalities and demonstrate practical feasibility within the proposed timeframe.

• Digital application via FöPro.
• Budget and financing plan.
• Project agreement (in case of transfer of funds to a partner).

Within the framework of the programme, beneficiaries are required to ensure proper oversight of project implementation, effectiveness, and compliance with the approved terms and conditions.

Monitoring of results and reporting.

Financial support is granted only to projects that clearly meet the defined eligibility requirements and are implemented in accordance with the approved action plan. Monitoring of implementation is carried out both during and after the completion of the project. Proper and intended use of funds must be confirmed after project completion in line with the applicable project implementation regulations.

Sustainability of results.

Beneficiaries must ensure the sustainability of project outcomes beyond the funding period. The contractual partner commits, where necessary, to cover any follow-up costs related to the project through its own or other available resources.

Prevention of conflicts of interest.

For both German municipalities and project partners, any direct or indirect pursuit of private economic interests or the commercial interests of third parties in the implementation of project activities is excluded.

Avoidance of double funding.

Projects must be independent and not reliant on other funding sources. It is not permitted to submit applications or receive funding for the same project or for individual components of it from multiple programmes simultaneously, including other development cooperation instruments.

Synergies with other programmes.

Synergies with other funding instruments are possible (e.g., partnership development programmes or other funds); however, each project must be structured in such a way that it can be implemented independently and without duplication of funding.

Within the framework of the grant programme, clear legal conditions and regulatory requirements are established regarding project implementation, travel arrangements, and the transfer of funds.

Travel and Safety

When submitting an application for a trip, the applicant must provide a detailed justification of its purpose, the number and roles of participants, the duration of stay, and the relevance of the trip to the project objectives. The number of participants and the length of stay must be reasonable and proportionate to the planned activities.

For professional exchanges and study visits, the following conditions apply:

• Funding may cover travel and subsistence costs within defined limits and for a specified number of participants.
• The duration of stay is subject to established limits.
• The stay must be strictly work-related.
• National regulations governing official travel must be observed.

Reimbursement of expenses is possible only upon submission of appropriate supporting documents and in compliance with programme rules. Participants are required to review safety regulations, vaccination recommendations, health insurance requirements, and registration procedures for travel abroad prior to departure. Private extensions of stay are not eligible for funding.

Transfer of Funds

The German municipality acting as applicant may transfer grant funds to partners in the partner country exclusively on the basis of a civil-law agreement. The German municipality remains fully responsible vis-à-vis the donor.

Key provisions include:

• Funds may be used solely for activities defined in the approved project.
• Overall project management remains the responsibility of the German municipality.
• Funding may not exceed the approved amounts.
• Personnel costs of German municipal administrations or their associations are not eligible.
• Transfers to municipal enterprises or associations are permitted only if they are not privately owned and are not administered by the partner-country municipality.

In the case of international transfers, the applicable foreign exchange regulations of the partner country must be observed, and all documentation related to currency transactions must be retained. Where national legislation prevents the transfer of original financial documents, alternative legally compliant documentation may be accepted.

General Compliance Requirements

All activities must comply with:

• the provisions of the grant agreement;
• applicable national legislation of the involved countries;
• financial accountability and proper use of funds principles;
• standards of transparency and responsible project governance.

The applicant bears full responsibility for compliance with safety standards, legal requirements, and proper financial management. Failure to comply with these obligations may result in the rejection of funding or termination of support.