Grants for Joint Projects of Ukrainian and Austrian Municipalities

The "Municipal Exchange Fund Austria for Ukraine" (A4U) program is aimed at building and supporting structured partnerships between municipalities in Austria and Ukraine. The initiative is implemented by the Centre for Public Administration Research (KDZ) and funded by the Austrian Development Agency (ADA) and the Austrian Association of Cities and Towns (AACT) under the multi-donor program "U-LEAD with Europe".

The main objective of the program is to strengthen the institutional capacity of Ukrainian municipalities as key frontline actors of decentralization, recovery, and EU integration. Cooperation is based on peer-to-peer exchange and transfer of practical know-how from Austrian partners to Ukrainian local self-governments, which are the sole direct beneficiaries of the projects. Concurrently, Austrian municipalities enhance their own crisis resilience and management capacity by learning from Ukraine's real-world experience in maintaining public services under full-scale war conditions.

Applications can be submitted by a partnership consisting of Austrian and Ukrainian partners:

• Lead Partner (Austria): A local government of Austria; an intermunicipal cooperation (IMC) arrangement; a communal enterprise; a local authority association (Gemeindeverband); or a civil society organization (CSO), educational, or research institution registered in Austria (established at least 12 months prior to the Call). If the Lead Partner is not a municipality, a Letter of Intent from an Austrian municipality is required.
• Project Partner (Ukraine): Exclusively a local government of Ukraine or an intermunicipal cooperation (IMC) arrangement established at least 12 months prior to the Call. Ukrainian CSOs, communal enterprises, or higher education institutions may participate only as supporting or implementing partners.

There are no geographic limitations within Ukraine — local governments from all regions are eligible to apply.

The total allocation for this Call for Proposals is €220,752. Individual grant amounts range from €25,000 (minimum) to €50,000 (maximum).

Eligible costs include:

• Expert and Facilitator Fees: Calculated based on working days (8 hours/day) at a rate up to €450/day.
• Travel Costs: Travel via the most economical means of transport. For Ukrainian partners using private vehicles, reimbursement is provided at €0.30/km (typically for distances up to 200 km one way). 1st class train tickets and business class flights are not eligible without specific justification.
• Per Diems: Cover accommodation, meals, and local transport. The maximum rate is up to €234/day for activities in Austria and up to €270/day for activities in Ukraine.
• Event Costs: Venue rental (only when suitable municipal premises are unavailable), simultaneous interpretation, technical equipment, and catering/coffee breaks.
• Other Costs: Insurance or specific material costs directly linked to project activities.

Ineligible costs include direct project management costs, large-scale infrastructure investments, military or defence-related activities, humanitarian assistance, as well as cancellation fees, minibar, or pay TV expenses.

The grant funds the following types of activities:

• Expert Support and Mentoring: Provision of technical advice, peer-to-peer mentoring between municipal staff, and short-term internships of Ukrainian officials in Austrian partner municipalities to jointly develop documents or procedures.
• Capacity-Building Events and Exchanges: Workshops, seminars, training sessions, and exchange visits conducted in in-person, hybrid, or remote formats.
• Preparation of Analytical and Strategic Documents: Development of questionnaires, preparation of guidance materials, roadmaps, draft municipal decisions, regulations, or local strategies.
• Small-Scale Pilot Activities: Testing improved methods of public service delivery, citizen engagement tools, or new administrative procedures within municipal operations.

• 15 October 2026: Official launch of the 2nd Call for Proposals.
• 30 November 2026: Application submission deadline.
• Mid-December 2026 (indicative): Proposal evaluation by the Committee and announcement of results.
• January 2027 (indicative): Award and signing of grant contracts.
• January – February 2027: Launch of project implementation.
• Project Duration: 6 to 8 months depending on the individual work plan.
• Midway through Implementation: Submission of a short mid-term report (one-pager).
• Within 30 days after project completion: Submission of final narrative and financial reports.
• Within 30 days after report approval: Final settlement and release of the remaining grant payment.

To submit an application, applicants must:

1. Download the full application package from the program website (www.municipalexchangea4u.eu or www.kdz.eu).
2. Jointly design the project and complete all mandatory forms in English.
3. Send the complete set of filled application documents by email to a4ucall@kdz.or.at by 30 November 2026 inclusive.

The overall maximum score for a project proposal is 66 points, with a minimum qualification threshold of 44 points. Applications are evaluated across five main sections:

1. Relevance — max 12 points (threshold: 8 points): alignment with program priorities, local municipal needs, and inclusion of environmental protection measures.
2. Effectiveness — max 15 points (threshold: 10 points): clear intervention logic, risk identification, conflict sensitivity ("Do No Harm" principle), and structured partner cooperation.
3. Efficiency — max 12 points (threshold: 8 points): cost-to-results ratio, financial control mechanisms, and clarity of pre-financing requests.
4. Sustainability — max 12 points (threshold: 8 points): institutional and financial sustainability, integration of outcomes into local municipal policies or strategies, and scaling potential.
5. Gender Equality and Social Inclusion — max 15 points (threshold: 10 points): involvement of women and vulnerable groups (IDPs, veterans, youth, persons with disabilities) in decision-making, and inclusion of gender-responsive monitoring indicators.

In addition, eliminatory criteria (YES/NO) are applied regarding deadline compliance, complete form submission, and applicant eligibility.

The application package must include:

1. Application Form.
2. Budget Template.
3. Baseline Information Form.
4. Partnership Agreement, Memorandum of Understanding (MoU), or Letter of Intent between the Austrian and Ukrainian partners.
5. Resumes (CVs) of key involved experts (if identified at the application stage).

The Lead Partner is obligated to submit completed and signed final narrative and financial reports within 30 calendar days after project completion. Original supporting accounting documents must be attached to the report:

• Invoices and signed timesheets for engaged experts.
• Bank account statements proving payment transfers.
• Boarding passes, used tickets, or mileage calculation logs for travel costs.
• Proof of per diem payments.
• Project outputs, participant lists, and photo documentation.

All projects must strictly adhere to the conflict sensitivity "Do No Harm" principle, ensure transparency, and comply with anti-corruption rules and zero-tolerance policies regarding fraud. Any suspected irregularities must be reported immediately to the Grant Manager.

The Grant Contract is signed exclusively with the Austrian Lead Partner, which assumes full legal, organizational, and financial responsibility for project implementation to the donor. The Ukrainian municipality acts as the direct beneficiary and key project partner; while it cannot sign the grant contract directly, it identifies its institutional needs and actively participates in project activities.

If the Lead Partner in Austria is not a municipality itself (e.g., an NGO, communal enterprise, or educational institution), an official Letter of Intent from an Austrian municipality is a mandatory legal requirement to confirm its commitment and involvement.

All project activities must be implemented in strict compliance with conflict sensitivity principles and the "Do No Harm" approach, as well as adherence to transparency, anti-corruption policies, and zero tolerance for fraud. All project materials, publications, and events must include visual acknowledgment of support and the logos of the program partners (ADA, AACT, U-LEAD with Europe).

Any substantial project modifications (changes in objectives, budget categories, key expert composition, or timeline extensions) require mandatory prior written approval from the Grant Manager.