Businesses, local governments and associations of businesses and/or local governments are invited to apply.

EcoLinks is a cooperative program for Central and Eastern Europe (CEE) and the New Independent States (NIS), funded by the United States Agency for International Development (USAID). EcoLinks seeks to strengthen the capacity of businesses and local governments in the region to develop market-based solutions to urban and industrial environmental problems through partnership projects.

Challenge Grants are competitively awarded on a cost shared basis. They support activities that address specific environmental problems of eligible CEE/NIS organizations and lead to measurable results. Since Challenge Grants are demand-driven, the applications are initiated by CEE/NIS organizations. They form partnerships with organizations either from the U.S. or other countries in the region. These team members help to prepare the application and manage the project. As a result, the environmental management capacity of the project initiator is strengthened.

This Request for Applications describes how a local government, business, or association can apply for a grant to address specific environmental problems. The application process is a two-stage procedure. In the first stage, eligible organizations are invited to submit a Concept Paper describing their proposed activity. The best Concept Papers are selected to continue into the second stage of the evaluation procedure, the Full Application stage. EcoLinks staff in each eligible country can assist applicants in finding cooperative partners in the US or in the region. The best full applications are selected by an independent panel and awarded a Challenge Grant.

Challenge grants support market-based projects that address specific urban or industrial environmental problems of the applicant organization and lead to concrete, measurable results. All projects in this fourth competitive cycle must focus on one or more of the three following areas: cleaner production, water quality management or global climate change.

Cleaner Production (CP), is a continuous application of a systematic, preventive environmental strategy to processes, products and services so as to increase efficiency and reduce risks to humans and environment. For production processes, CP includes conserving raw materials and energy, eliminating toxic processing materials and reducing the quantity and toxicity of all emissions and wastes leaving a production process. For products, CP focuses on reducing environmental impacts along the entire life cycle of the products and services, from design to ultimate disposal.

By targeting the causes rather than the consequences of polluting activities, cleaner production eliminates pollutants at their sources – where and when they occur in manufacturing and other production processes – and eliminates the need to treat or dispose of those pollutants later. Organizations may use CP to look for new and innovative practices that will lead to waste reduction and at the same time increase profits by reducing costs or stimulating new products.

CP promotes the application of preventive techniques to optimize material and energy flows and minimize use of toxic substances. However, in some cases CP methods may not be effective in reducing emissions to the desired levels. Under such conditions, an end-of-the-pipe treatment may be included in a CP approach.

In order to apply a cleaner production approach to an environmental problem, two requirements must be met:

1. Systematic Approach – CP does not address a single preventive measure, but rather it provides for the systematic analysis of the CP potential for the project,
2. Continuous Application – Only a continuous application of CP leads to a continuous improvement of environmental performance.

Under this topic, a systematic approach can also be applied to solid waste management activities. A systematic approach to solid waste management often comprises solid waste minimization, waste transport optimization, recycling/reuse and introduction of market incentives to reduce the costs of collection and disposal. NOTE: Project activities that only include the development of a landfill or waste disposal site will not be accepted.

Examples of activities that might comprise a Cleaner Production project are the following:

• conducting an initial review to identify critical material and energy flows,
• assessing various options for introducing cleaner production,
• supporting technology demonstrations that showcase cleaner production practices,
• developing a model recycle/reuse program for municipalities,
• developing an integrated system for solid waste management (incorporating waste stream assessment and minimization, recycling/reuse, transport optimization, landfilling etc.).

Water Quality Management The topic refers to activities that lead to water conservation and/or to the reduction of harmful substances or pollutants in water either used by municipal or industrial consumers or discharged from municipal or industrial sources.

Projects should promote implementation of market-based solutions. They should include economic analysis of present and future demand, analysis of possible systems (centralized or distributed), and analysis of feasible technologies and technical options. Projects should also involve evaluation of financial viability of the solution.

A systematic approach should be applied to Water Quality Management. Depending on the project, this approach may involve wastewater minimization, leak abatement, optimization of treatment processes, and utilization of by-products (methane, sludge). NOTE: Project activities that only include the development of a treatment facility or infrastructure will not be accepted.

Examples of activities that might comprise a Water Quality Management project are the following:

• assessing solutions which lead to water conservation in production processes such as minimizing use of raw water and introducing recycling/reuse of purified or treated water,
• conducting analyses to identify water conservation and protection measures for municipal purposes such as minimizing use of treated/purified water, implementing methods and technologies for leak detection and abatement, and introducing water quality and discharge monitoring systems,
• assessing and implementing innovative, energy efficient water/wastewater treatment technologies and practices,
• conducting analyses to identify options for modernization or automation of existing water/ wastewater treatment facilities.

Global Climate Change refers to the increase of the earth’s temperature due to the release in the atmosphere of greenhouse gases resulting from human activity. Greenhouse gases include carbon dioxide, methane, nitrous oxide, chloroflurocarbons (CFCs), hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), perfluorcarbons, and sulfur hexafluoride.

Grants will support activities that lead to the reduction or elimination of greenhouse gas emissions. Examples of activities that might comprise a Global Climate Change project are the following:

• conducting an energy audit to assess energy costs/potential savings and improvements
• preparing a study for improving the energy efficiency of district heating systems,
• identifying and assessing technologies that reduce greenhouse gas emissions or energy intensity,
• developing a demand-side management system for energy service providers,
• preparing and implementing a plan to capture methane from landfills,
• conducting a study on conversion of motor fleets to run on alternative fuel,
• identifying and assessing options for introducing renewable energy sources, such as wind, solar, biomass, and hydro as an alternative to existing conventional energy sources.

• Businesses (private and state-owned companies);
• Local Governments;
• Associations of Businesses and/or Local Governments (with membership consisting of organizations that represent the business and local government sectors)

It consists of a Leader, Partners (maximum 2), and optional Associates. If there is only one Partner, that Partner must be from a different country than the Project Leader. If there are two Partners in the project, then one Partner must be from a different country from the Project Leader.

• The Leader is the eligible organization that has the specific environmental problem to be addressed under one of the topics of the Request for Applications. This ensures that proposed projects are demand driven and applicants show ownership and commitment to find solutions and implement them even beyond the duration of the grant. The environmental problem can be a result of poor environmental performance or constraints on the process, products, or practices (such as non-compliance).

• The Leader is responsible for proposing the idea of the project, building the project team, and submitting the Concept Paper and the full application to EcoLinks.
• If the project is awarded a grant, the Project Leader is responsible for managing the project and reporting to EcoLinks. The Leader assigns a Project Coordinator to coordinate these tasks.
• The Leader receives funds directly from EcoLinks. The Leader’s bank account must be in US dollars to be awarded a grant.

Organizations from the following countries may apply in this grant cycle as a Leader:

• Bulgaria;
• Croatia *
• Kazakhstan;
• The Former Yugoslav Republic of Macedonia;
• Romania;
• Russia Far East *
• Ukraine.

• A Partner is an eligible organization that works together with the Leader in addressing the Leader’s specific environmental problem.
• The Partner has specialized expertise for the project, and thus is able to offer consulting, advice and assistance to the Leader. It is expected that the Partner will assist the Leader to strengthen its capacity to solve environmental problems.
• The Partner must have a US dollars bank account to be awarded a Challenge Grant and receives the funds directly from EcoLinks, not through the Leader.

Organizations from the following countries may be project Partners: the United States, Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kyrgysztan, Latvia, Lithuania, Former Yugoslav Republic of Macedonia, Republic of Moldova, Poland, Romania, Russia, Slovakia, Turkmenistan, Ukraine, and Uzbekistan.

Associates

• Associates are other stakeholders, including other businesses or local authorities, civic organizations, non-governmental organizations (NGOs), academic institutions, school groups, and research organizations.
• Associates may offer additional assistance and support for small, specific tasks or facilitate public participation, if relevant.
• Associates cannot apply directly for the grant or receive funding directly from EcoLinks. The Project Leader or its Partners may subcontract specific tasks to Associates.

The Concept Paper must meet the following requirements:

• Grant Topic: The activity fits under one or more of the selected grant topics explained above.
• Environmental Problem: The Concept Paper clearly defines the Leader’s environmental problem that is addressed by the project activity.

• Program Scope: Proposed project fits under EcoLinks’ general program scope. This includes addressing urban and industrial environmental problems and proposing a market-based solution to the problem described. Market-based solutions are defined as solutions that are both economically and environmentally sound.
• Legal Compliance: Proposed project complies with the legal requirements in that country (environmental, public participation, access to information).
• Project Duration: Proposed project is no less than 6 months long but is completed within one year.
• Results: Project is expected to yield measurable/concrete results at its end.
• Budget: The budget is within the limit ($50,000.) Note: for the Full Application, the project team will be required to provide a 25% cost share.
• English Competence: Each organization (Leader and Partner) must have an English speaker in the team.
• Company Legitimacy: If the Leader is a business, it must be able to demonstrate that it is legally registered in its country. Companies are required to provide an organizational profile.
• Government Commitment : Local government applicants must be able to demonstrate the commitment of the mayor/chairperson for the project by providing a letter of commitment.

Applications will be awarded based on the following criteria*. Equal weight will be given to each point:

1. The capacity of the Project Leader to implement the project is strengthened through a cross-border partnership that provides for the sharing of experience, expertise, information and/or technology.
2. The project promotes market-based solutions to urban or industrial environmental problems. The project is both economically and environmentally sound. It also demonstrates an understanding of market incentives and their application.
3. The project is clearly defined and relevant to the local situation.
4. The goals and objectives are feasible, and the goals can be reached within the project scope.
5. The implementation plan clearly defines the key activities that are required to achieve the objectives as well as the tasks, timelines and deliverables for each partner. The plan describes how the project will be managed and defines the roles of each partner.
6. The members of the project team are capable of managing and completing the project, both financially and organizationally.
7. The project generates tangible results by the end of the grant period. These results are verifiable, measurable and consistent with the expected outcomes.
8. The project has a high potential to result in a best practice or model that can be replicated in another organization or country.
9. The budget is complete, reasonable and cost-effective. It is clearly explained, proposing realistic and cost-effective solutions and spending limited funds in the most efficient manner.

• An organization (Leader or Partner) cannot submit more than one Concept Paper and be involved in more than one full application per cycle.
• An organization currently working on a Challenge Grant funded project cannot apply for another Challenge Grant before the project is closed and final report is submitted and accepted by EcoLinks.
• An organization (Leader or Partner) cannot receive funds from more than one EcoLinks grants at a time. This includes Quick Response Awards and Challenge Grants.
• When evaluating full applications, priority will be given to organizations that have not previously received Challenge Grants from EcoLinks.
• EcoLinks is not an investment or lending program. The Challenge Grants do not fund: purchase of land, vehicles or buildings, activities involving nuclear power plants (NPPs), recreational or tourism activities, and research and development or general marketing activities.
• The maximum allowable amount for purchasing equipment or technology is 20% of the Challenge Grant amount (maximum 10,000 US Dollars). The equipment must be a separate and complete item to be used within the EcoLinks project timeframe for project purposes. Special conditions policies and procedures for equipment purchase apply such as competitive procurement and country eligibility for purchase and origin (priority is given to US or CEE/NIS products). More information on equipment purchase is provided at the full application stage.
• Salaries are not covered by EcoLinks. However, EcoLinks funds will cover consultant/contract fees to individuals (or organizations) when they provide services to other organization(s) involved in the project. Services include but are not limited to: technical assistance, training, and accounting. NOTE: For all government employees, EcoLinks funds cannot be used to support salaries and/or consultant/contract fees.
• EcoLinks reserves the right to award less than the total amount requested in the original Challenge Grant application.

The Challenge Grant application is a two-stage process.

Eligible businesses, governments, and associations should begin by identifying their specific environmental problem and focusing the issue as much as possible. Organizations should start at a smaller scale, the organization level, and avoid describing general environmental problems in the country. The Challenge Grant supports activities that address specific environmental problems of the Leader organization. The project must lead to concrete results.

The Concept Paper is in English and must include:

1) Concept Paper Cover Page: Fill out the attached Cover Page. Briefly answer the questions outlined in the cover page. Use no more than 2 sheets of A4 single-side paper to answer these questions.

2) Documentation of support: Business applicants and/or associations of businesses and local governments must submit a copy of the legal registration document. Registration documents do not have to be translated.

Local government applicants must provide a letter of commitment to the project from the mayor/chairperson of their organization. The letter must demonstrate the interest of the local authority for the project and the commitment to make it happen. The contact information for the mayor/chairperson must be included.

3) Applicant Basic Information Form: Complete the attached Applicant Basic Information Form and send it together with project concept.

4) Partner Search Form (where appropriate)

If you do not have a partner for your project and you need EcoLinks assistance in finding a partner, please complete the attached Partner Search Form and submit it with the rest of your application. Grants will only be awarded to organizations working together on a project. If you do not have a partner, EcoLinks staff will help you find appropriate organizations only after the Concept Paper is approved.

The Project Leader is responsible for submitting two (2) copies of the Concept Paper. Organizations are encouraged to contact their Program Officer if they have any questions as well as to send their Concept Paper as early as possible in the process. This will allow for more time for application preparation, if the concept is approved. If there is time before the deadline, EcoLinks staff can advise on the preparation of the Concept Paper.

The CPO will pre-screen the Concept Paper to determine whether it meets the above screening criteria. If they are met, the CPO will approve the Concept Paper. Each CPO will schedule a workshop to explain the guidelines for preparing a Challenge Grant full application to organizations with approved Concept Papers.

After the Concept Paper is approved, the CPO will give you the Application Guidelines and Forms and the Equipment Purchase Policies and Procedures to complete the application. The Leader is responsible to contact potential Partners and explain the problem it wants to address. EcoLinks strongly encourages the Leaders and the Partners to meet one another, in order to improve communication and build trust. EcoLinks offers separate Quick Response Awards (QRAs) to help partners meet one another, plan their collaboration on a project, and work on a full application.

Note: Should you apply for a QRA to work on a full application this cycle, please contact your Country Program Officer or the appropriate Regional Program Manager for information. The QRA application must be submitted by SEPTEMBER 15 , 2000 to allow EcoLinks staff sufficient time to process it and transfer the funds. The QRA activity must take place before the full application deadline. Please note that if you want to receive the QRA payment before the activity takes place, you must submit the QRA application well in advance.

The Leader and Partner(s) should prepare and sign a Letter of Cooperation to show that they agree to propose and implement the project jointly. This Letter must be signed by representatives of Leader and Partner(s) and should be included in the Full Application.

The due date for the completed application is NOVEMBER 6 , 2000. The full application must be in English. One original version and two copies (one unbound) for a total of three (3) full applications must be received at the EcoLinks office in your country by this date or it will not be accepted. Faxes and e:mails attachments are not acceptable.

All applications are kept in EcoLinks files. Applications are kept confidential unless the applicant or grantee gives their express written permission. EcoLinks will not return any materials to the applicants. Therefore, applicants must be careful to send only copies of materials such as registration documentation.

An Expert Panel on the environmental topic(s) from the region and the United States evaluates the grant applications. Full applications are first pre-screened to meet the listed requirements, then the Panel scores and ranks the applications according to the selection criteria specified in this Request for Applications. EcoLinks reserves the right not to award the maximum number of grants if enough applicants do not meet the criteria. All applicants will be notified of the outcome of this process by a formal notification letter.

If a project is awarded a grant, the Project Leader and their Partner(s) are required to attend a Start-up Meeting to be held at the EcoLinks Office in the Project Leader’s country. At this meeting, you will work with the CPO to finalize the terms of your grant agreement with EcoLinks, including the disbursement schedule for the grant funds and the reporting requirements. You will also present your joint project to the other awardees attending the meeting.

Eugene Yesirkenov Megan Falvey

Country Program Officer in Ukraine Regional Program Manager in NIS

P.O. Box B-456, 01001 Kiev P.O. Box B-456, 01001 Kiev

Tel/fax: (380-44) 462-00-59 (till June 1, 2000) Tel/fax: (380-44) 228-12-25

Tel/fax: (380-44) 228-12-25 e-mail: megan@carrier.kiev.ua

e-mail: program@ecolinks.relc.com