The BSEC Economic Agenda, which was adopted by the Council of Ministers of the BSEC Member States in Moscow on 27 April 2001, acknowledged that in order to facilitate the elaboration and promotion of projects the concrete mechanism had to be established. The document also contained the novel elements of this mechanism - the setting-up of a “Seed Money Fund” for the financing of pre-feasibility and feasibility studies and other relating activities. The main stages of the project elaboration and promotion mechanism of the mechanism were prescribed.
As a result, at its 7th meeting, which was held in Tirana on 25 October 2002, the Council of Ministers of Foreign Affairs adopted a resolution establishing the Project Development Fund. Following the resolution a Manual of Operations was adopted by the 10th Council (Baky, 30 April 2004). The first PDF Application was submitted though the Working Group on Transport (Baky, 1-2 October 2003) and it was approved by the Council of Ministers of Foreign Affairs in Baky on 30 April 2004.
In accordance with the Manual of Operations, the Committee of Senior Officials (Istanbul, 26-27 February 2007) launched a 3-year review process the review and assessment report on the activities of the Fund and submitted recommendations on the future of the Fund to the Council.
As a result, the 19th Council (Tirana, 23 October 2008) approved a new Manual of Operations of PDF which introduced the new rules and provisions. Furthermore, the 21st Council (Baky, 22 October 2009) approved the revised PDF technical documents (application, grant contract, etc.) which comply with the new Manual of Operations.
The new Manual of Operations prescribes that the Fund shall be managed by the Steering Committee with decision making power on the distribution of the Fund’s resources. Each BSEC Member State and BSEC Related Body shall appoint one representative to the Steering Committee.
Each BSEC Member State will seek to make voluntary contributions to the Fund within the period of three years, starting with the adoption of this Manual of Operations by the Council.
PDF application procedure
The PDF Grant serves for elaboration of project idea(s) and plan for the development and implementation of the project after the BSEC PDF financed stage. The PDF projects should encompass an economic element able to lead to, in the future, to a significant development impact for the BSEC region.
Manual of Operations of PDF
General Conditions applicable to BSEC grant contracts under the Project
Standard Application for funding a BSEC Project
The targeted sectors for PDF financing are those outlined in the BSEC Economic Agenda and specified in accordance with the action plans and decisions of the BSEC working groups. The working groups should periodically establish priority project areas and corresponding timeframes to enable the launching of respective calls for proposals and with due consideration of the Fund’s annual budget.
All PDF applications should contain an assessment on how the project concerned may promote the implementation of specific resolutions, decisions and recommendations of the Council, including those endorsing the declarations and action plans adopted by sectoral ministerial meetings.
Any legal entity from the 13 BSEC Member States can apply as partner.
Institutions from at least three (3) BSEC countries must participate and the project must have the eventual consent of the governments of the respective countries.
Projects are encouraged to involve more than three BSEC Member States as well as institutions from non-BSEC countries.
Partners from non-BSEC countries (Observers or other) are encouraged to participate in the project but are not eligible to the Grant.
The Grant can be up to 30,000 Euro and the project (pre-feasibility study) must be completed within 12 months. Additional project financing is welcomed from the partners (own financing) or other sources.
The project application must be signed and stamped by all partners and be available in electronic version to be presented for an initial assessment at the corresponding Working Group (transport, energy, tourism, science & technology, telecomm, good governance, environment, agro-industry, SMEs, etc) .
It is important that the project be well written, clear and comprehensible, realistic and with a strong possibility to be implemented after the BSEC financed stage. There should be a realistic and justified possibility to ensure additional sources of funding for its implementation.
60% of the Grant is paid as soon as the project is approved by the PDF Steering Committee and a contract is signed with BSEC PERMIS.
An interim (mid-term) report as well as a final report must be submitted both with a financial part showing expenditures (all in English).
With the completion of the project, partners must present valid proof of expenditures to receive the remaining 40% of the Grant.
The Manual foresees multi-staged selection mechanism for projects to be financed from PDF:
1. BSEC PERMIS;
2. Relevant Working Group;
3. Committee of Senior Officials;
4. PDF Steering Committee;
5. BSEC PERMIS.
Upon completion of a project and approval of the final deliverables, the Steering Committee will forward them back to the Working Group which made the initial assessment for an ex-post evaluation and additional support for the full scale implementation of the targeted project.
For further information please contact Mr. Sergii KRAVCHENKO, Project Coordinator email@example.com