CHALLENGE FUND

Eligible applicants much be registered in Czech Republic, and include private sector entities, non-governmental organizations, universities, state institutions or research centers.

Though, the applicants are required to engage local partners to assure viability in local conditions and to promote sustainability and scalability of the solution.

The Challenge Fund supports new approaches, ideas, services or products that have not been tested anywhere, and are new or unique solutions for beneficiary countries, sectors or communities.

The Challenge Fund also supports feasibility studies providing an innovative and replicable solution.

A feasibilities study should include evidence that the proposed solution is feasible, and an implementation plan specifying concrete actions and partnerships necessary for the implementation. It should list all associated activities, stakeholder engagement, implementation costs and possibilities for scale-up.

Projects supported by The Challenge Fund should have the proven potential for financial, social and environmental sustainability and scale-up. Projects should be inclusive in nature and benefit the target communities and additionally contribute to the achievement of SDGs, rather than solely benefitting the participating entity.

The applicants are also expected to identify potential financial partners from the public/private sector, international financial institutions, donors, or other entities that could finance the solution implementation and scaling up.

Based on the announced call for applications, the applicant will submit a project proposal and all relevant documents to the UNDP Istanbul Regional Hub.

Entities applying to the Challenge Fund: Czech Solutions for SDGs need to meet the following eligibility criteria:

• The lead applicant must be registered in the Czech Republic;
• The project must be implemented in one of the partner countries: Bosnia and Herzegovina, Federal Democratic Republic of Ethiopia, Georgia, Kingdom of Cambodia, Republic of Moldova and Republic of Zambia;
• All applicants must demonstrate the capacity to implement the proposed project and adequate financial, material, human and other non-financial resources needed to implement the project within the set timeframe;
• The applicant may partner with another entity/entities which meet the eligibility criteria herein;
• The funding request is for a specific, new and innovative project that addresses the set development challenge. The Challenge Fund views innovation in its broadest sense including:

1. 1. 1. a new approach, product, idea or service that has not been tested anywhere;
      2. is new to the beneficiary country;
      3. has not been applied to the sector in question in the beneficiary country; or
      4. a service or business model being introduced to a target group where it has not been tried before;

• The proposed project must have a potential for financial, social and environmental sustainability and scale-up;
• The project must be inclusive in nature and benefit the target beneficiaries and contribute to the achievement of SDGs rather than solely benefitting the participating entity.

General Rules for Applications:

• Each entity may submit one application per country, however only one application per entity will be selected for award;
• Re-submission of modified and improved applications previously submitted are not allowed;
• Deadline for application is to be strictly respected;
• In the evaluation process, only complete applications will be accepted;
• All submitted documents must be in English.

Award Amount and Budget:

• The CFCS support ranges between US$20,000 and US$40,000 per project.
• The applicants are expected to provide in kind or financial co-funding of at least 20% of the total project costs.
• Typical items that can be covered by the CFCS may include, but are not limited to:

1. 1. 1. Project staff salaries;
      2. Technology, design, business, development and other consultancy services;
      3. Advisory inputs;
      4. Small equipment and supplies;
      5. Trainings and workshop expenses;
      6. Other costs, including travel costs related to the project implementation;

• Expenses should be predicted to reflect the project goals and should be clearly justified in accordance with the project objectives. Only expenditures accrued during the project in accordance with the project plan in line with project objectives necessary for achieving project outcomes and completed by the end of the project are eligible for financing. All agreements with subcontractors or third parties must be submitted with the application and must contain provision that the applicant retains ownership of all new intellectual property and know-how that may be created during the implementation of the project.

Evaluation Process and Selection Criteria:

• After the submission deadline, all duly submitted applications are reviewed against the eligibility criteria and reviewed for completeness. All rejected applicants will get a notice accompanied by a short explanation. For these applicants, the selection process is finished. They do not have the right to appeal;
• All eligible and complete applications will be evaluated by a five-member UNDP Evaluation Panel;
• Applications will be evaluated according to the following criteria:

1. 1. 1. Innovative solution (introduction of a new idea, approach, product or service to a target group) with consideration of risks (10%);
      2. Development impact and project quality including intervention logic (20%);
      3. Experience of management and development team (10%);
      4. Potential for scale up and replication (10%);
      5. Long-term sustainability (financial, environmental, social) (10%)
      6. Value for money and cost-effectiveness (30%);
      7. Availability of co-funding (0% for the required minimum of 20% of total project costs, then 0.5% for every additional 1% co-funding of the total projects costs up to a maximum of 10% = 40% co-funding of total project costs);

• Only applications that score above 50% will be evaluated in full and considered for awarding the project.