2nd Call for Proposals for the Cross-border programme Bosnia and Herzegovina – Montenegro (IPA III)

Grant Purpose and Target

Core Objective

The core objective of this grant is to promote good neighborly relations, foster Union integration, and contribute to the social, economic, and territorial development of the cross-border area between Bosnia and Herzegovina and Montenegro by addressing climate change challenges.

Funding Organization

Delegation of the European Union to Bosnia and Herzegovina (acting as the Contracting Authority on behalf of the European Commission).

Target Recipients

Eligible applicants are non-profit-making legal entities established in either Bosnia and Herzegovina or Montenegro. This includes:
* Public authorities and institutions (at local, regional, or national levels).
* Civil society organisations (CSOs).
* Education, training, scientific, and research organizations and institutions.
* Local and regional development agencies.

Sector Focus

This grant is SECTOR-SPECIFIC, focusing exclusively on environmental protection and climate action. Projects must align with one of two thematic lots:
* Lot 1: Improving capacities for climate change adaptation and mitigation, risk prevention, and management.
* Lot 2: Promoting climate change adaptation and mitigation, risk prevention, and management.

Geographic Scope

The action must take place in and benefit the populations of specified territorial units within the programme area of Bosnia and Herzegovina and Montenegro. A detailed list of eligible municipalities and cities is provided in the guidelines.

Key Filtering Criteria

• Project Scale: Grant amounts must be between EUR 250,000 and EUR 450,000.
• Project Duration: The project duration must be between 24 and 36 months.
• Consortium: A cross-border partnership is mandatory. The partnership must include at least one applicant from Bosnia and Herzegovina and one from Montenegro. Furthermore, the partnership must include at least one public authority from each of the two countries.
• Technology Readiness Level (TRL): TRL is not a primary criterion. The focus is on capacity building, developing strategies, and implementing pilot/demonstration projects rather than pure technological R&D.

Financial Structure

Funding Range

Any grant requested must be between the following amounts:
* Minimum amount: EUR 250,000
* Maximum amount: EUR 450,000

Co-financing

The grant may cover a portion of the total eligible project costs:
* Minimum percentage: 50% of total eligible costs.
* Maximum percentage: 85% of total eligible costs.

The remaining balance (between 15% and 50%) must be financed by the applicants from sources other than the European Union budget or the European Development Fund.

Eligible Costs

Eligible costs must be directly related to the project. Key eligible costs include:
* Staff Costs: Salaries of personnel of national, regional, or local administrations can be eligible if they relate to activities the authority would not otherwise carry out. These costs cannot exceed the total co-financing provided by the applicants.
* Indirect Costs: A flat rate of up to 7% of the total eligible direct costs can be claimed as indirect costs (e.g., overheads).
* Contingency Reserve: The budget may include a contingency reserve of up to 5% of the estimated direct eligible costs.

Ineligible Costs

Costs that cannot be funded by the grant include:
* Debts and interest payments.
* Provisions for losses or future liabilities.
* Purchases of land and existing buildings.
* Currency exchange losses.
* Contributions in kind (which also cannot be used as co-financing).
* Bonuses for staff, fines, and expenses for litigation.
* Bank charges and costs of guarantees.

Payment & Reporting

Payments will be made according to the terms of the standard grant contract. This typically involves an initial pre-financing payment, followed by potential interim payments based on submitted narrative and financial reports, and a final payment after the action is completed and the final report is approved.

Eligibility Requirements

Formal Criteria

To be eligible, an applicant (both lead and co-applicants) must:
* Be a legal person.
* Be non-profit-making.
* Be established in either Bosnia and Herzegovina or Montenegro.
* Submit the application as part of a cross-border partnership. This partnership must include at least one co-applicant from the other participating country.
* The partnership must include at least one public authority from Bosnia and Herzegovina and one public authority from Montenegro with responsibility in the relevant field for the chosen lot.
* The lead applicant must be directly responsible for the project's management and not act as an intermediary.

Organizational Status

Applicants must be one of the following types of organizations, with specific relevance to the chosen lot:
* Lot 1 (Risk Prevention & Management): Public authorities (with competencies in climate risk), CSOs (active in climate change, emergency services), education/training institutions, research institutions, and development agencies.
* Lot 2 (Climate Change Adaptation & Mitigation): Public authorities (with competencies in climate, nature, agriculture, forestry), CSOs (active in climate, agriculture, forestry), education/training institutions, research institutions, and development agencies.

'Public authorities' are broadly defined and include ministries, government agencies, local government units (municipalities, cities), and public companies/institutions founded by the government.

Technical Expertise

While specific skills are not listed as a formal requirement, the evaluation criteria assess whether applicants have 'sufficient technical expertise' in project management and the thematic area of the proposal. Expertise in climate change adaptation, disaster risk management, environmental protection, or related fields is implicitly necessary.

Exclusion Criteria

• Ineligible Actions: Actions that are ineligible for funding include:
  • Individual sponsorships for conferences or scholarships for studies.
  • Projects primarily focused on upgrading infrastructure in privately owned facilities.
  • Actions without genuine cross-border impacts and benefits.
  • Actions linked to political parties or with a primary commercial/profit-making goal.
  • Purely charitable donations.
  • Projects already funded by other EU programmes.
• Applicant Restrictions:
  • A lead applicant may submit only one application per lot.
  • A co-applicant or affiliated entity may participate in only one application per lot.
• Standard Exclusions: Applicants must not be in any of the exclusion situations listed in the EU's practical guide (e.g., bankruptcy, grave professional misconduct, fraud).

Application Practical Information

This is a restricted call for proposals with a two-stage application process.

Deadlines

• Concept Note Submission: 28 November 2025, 12:00 (Brussels time).
• Full Application Submission (for pre-selected applicants): 15 May 2026, 12:00 (Brussels time).
• Clarification Questions Deadline: 07 November 2025.

Required Documents

• Stage 1 (Concept Note): Applicants must submit the Concept Note form (Annex A.1) and a Declaration by the Lead Applicant.
• Stage 2 (Full Application): Pre-selected applicants will be invited to submit a Full Application form (Annex A.2), a detailed Budget (Annex B), a Logical Framework (Annex C), a Declaration on Honour on Exclusion Criteria (Annex H) for all partners, and the statutes/articles of association for all partners. The lead applicant must also provide a copy of its latest financial accounts.

Application Process

1. Registration: All applicants (lead, co-applicants, and affiliated entities) must register in the EU's PADOR system and obtain a Participant Identification Code (PIC) from the Participant Register.
2. Submission: Both concept notes and full applications must be submitted online via the PROSPECT platform (https://webgate.ec.europa.eu/prospect).
3. Evaluation: Concept notes are evaluated first. Successful lead applicants are then invited to submit a full application.

Support

• Financial: The primary support is a non-repayable grant.
• Informational: The Contracting Authority will hold information sessions to provide guidance to potential applicants. Dates will be announced on the programme and EU delegation websites.

Post-Award Obligations

• Implementation Period: Approved projects must be implemented within 24 to 36 months.
• Partnership Agreement: All partners in a successful project must sign a partnership agreement that outlines roles, responsibilities, and financial management.
• Reporting: Grant beneficiaries are required to submit regular narrative and financial reports to the Contracting Authority throughout the project's lifecycle.

Evaluation Criteria

Applications are evaluated in a two-stage restricted procedure. Only pre-selected concept notes proceed to the full application stage.

STAGE 1: Concept Note Evaluation (Total 50 points)

Concept notes must score at least 30 points to be considered for pre-selection.
* Relevance of the Action (25 points): Evaluates how well the project aligns with the call's objectives and priorities, addresses the specific needs of the target region, defines its beneficiaries, and offers specific added value (e.g., public-private partnerships, innovation).
* Design of the Action (25 points): Assesses the overall coherence of the project design, its potential for tangible impact, how it mainstreams cross-cutting issues (like gender equality and environmental sustainability), and whether it is innovative or builds on past lessons.

STAGE 2: Full Application Evaluation (Total 100 points)

Full applications must score at least 12/20 on 'Financial and operational capacity' and a total of at least 75/100 to be recommended for funding.

Scoring Factors

• Financial and Operational Capacity (20 points): Assesses the applicants' experience in project management, technical expertise, management capacity, and the lead applicant's financial stability.
• Relevance of the Action (25 points): A more detailed re-evaluation of the project's alignment with call objectives, regional needs, target groups, added value, and the mainstreaming of cross-cutting issues.
• Design of the Action (25 points): Examines the coherence of the project design, its likely impact, technical quality, inclusion of a gender analysis, and risk management strategy.
• Implementation (15 points): Focuses on the feasibility of the action plan, the appropriateness and added value of the partnership, and the level of involvement of all partners.
• Sustainability of the Action (15 points): Evaluates the project's potential to continue after EU funding ends, the level of ownership by the target group, and the supporting policy and institutional frameworks.

Cross-cutting Themes

Mainstreaming cross-cutting issues is a scored criterion. Key themes include:
* Improved capacity of local authorities.
* Gender equality and equal opportunities.
* Protection of ethnic minority rights.
* Integration of people with disabilities.
* Children's rights.
* Good governance and anti-discrimination.
* Environmental protection and biodiversity.

Compliance and Special Requirements

Regulatory Compliance

• EU Registration: Mandatory registration in the EU's PADOR system and the Participant Register (to obtain a PIC) for all partners.
• Exclusion Criteria: Applicants must sign a 'Declaration on Honour' (Annex H) certifying they are not in any situation that would exclude them from receiving EU funds.
• SEA-H Policy: Applicants must complete a self-evaluation questionnaire regarding their internal policies against Sexual Exploitation, Abuse, and Harassment (SEA-H), indicating an expectation of compliance in this area.
• Environmental & Construction Permits: For any projects involving works, a positive decision on an environmental impact assessment (or a statement that one is not needed) is required with the full application. All necessary location and construction permits must be secured before the grant contract is signed.

IP Policy

Intellectual property rules are not specified in the guidelines but will be detailed in the 'Standard Grant Contract' (Annex G), which all successful applicants must sign.

Unique Aspects

• Mandatory Cross-Border Partnership: This is the core of the grant. The partnership must involve entities from both Bosnia and Herzegovina and Montenegro.
• Mandatory Public Authority Inclusion: The partnership is not valid unless it includes at least one public authority from Bosnia and Herzegovina and one from Montenegro.
• Strict Partnership Criteria: The project must demonstrate joint development, joint implementation, and either joint staffing or joint financing to be eligible.
• Restricted Call: The two-stage application process requires a concise, high-quality concept note to pass the initial screening before a full proposal can be developed.
• Strategic Alignment: Proposals are encouraged to show alignment with wider EU strategies for the region, such as the Green Agenda for the Western Balkans and the Economic and Investment Plan.

Industry-Specific Rules

This call is not industry-specific but has a strict thematic focus on environment and climate change. Projects involving physical works must adhere to national laws regarding construction, land use, and environmental protection.