Small Scale Project Funds

Small Scale Projects

Small Scale Projects, © dpa

09.04.2021 - Article

The German Government provides funds for small-scale development assistance projects. This funding scheme is called the Small Scale Project Funding. Applications should be addressed to the German Embassy.


Projects have to be implemented within one year only!

  • Deadline for application: 30 September for next year funding
  • Every project can be funded with a maximum of Euro 25.000,-
  • Applications have to be written in German or English language. Only government (VDC/CDO) letters are accepted in Nepali.
  • A detailed financial plan and timetable are required.
  • The official application form has to be used. Please abstain from creating your own application booklets. Over 50 applications are submitted each year. A long extensive application takes longer for us to process. Application Form has to be signed by two representatives.
  • It has to be stated clearly in the application if the proposed project has been submitted to other possible funding sources or is funded through the sources.
  • Projects have to be sustainable and provide positive impact on the community.
  • The project has to aim at poverty alleviation
  • No trainings
  • Submitted by paper to Embassy’s address

Who can apply?

  • Local community groups or NGOs who plan a small – scale project. The community must contribute financially itself to the project. Its share has to be mentioned in detail in the financial plan. Total funding only by this Embassy is not possible. The share should not be less then 30%.
  • Earlier projects undertaken by the organization and assistance received from other donors have to be mentioned.
  • Follow up costs have to be covered by the community or NGO. Please state how follow up costs are going to be covered.

Where to find the project?

Staff of this Embassy must be able to visit the project in person. Please hand in an exact road map of the location (only mentioning the district is not enough).

Who shall benefit from the project?

Special attention shall be given to the needs of women, children, handicapped people and other disadvantaged groups. Projects concerning health, gender, disadvantaged groups, income generating activities and environmental sustainability can be funded.

Following projects can be funded:

  • Community - level health
  • Sanitation
  • Essential environmental conservation
  • Rural Development
  • Small – scale infrastructure(for e.g. bridges, irrigation canals, drinking water supply, energy programs(solar, biogas, small hydro power plants)
  • Cooperative buildings(e.g. for income generating measures)

Following projects cannot be funded:

  • Events/conferences at home/abroad
  • 100% projects of trainings
  • Overseas study tours/scholarships
  • Academic training in Germany/Nepal
  • Items of a recurrent nature, staff salaries, office rental and utility costs, spare parts, supplies, refreshments etc.
  • Payment of consultants and advisors
  • Revolving and matching funds
  • Land accreditation
  • Proposal from individuals
  • Long term projects

Funding arrangements

A grant agreement will be negotiated between the German Embassy and the community or NGO before funding. Funding can only be provided after original invoices are presented. The invoices must tally with the financial plan. Funding can only be used for the activities outlined in the agreement. Any excess funds through savings or other means, including interest earned on funds awaiting use, must be used for activities in line with those outlined in the proposal or refunded to the German Embassy. If, for whatever reason, the project cannot proceed as planned within the agreed timeframe, the agreed funds must be refunded to the German Embassy, or with prior approval of the Embassy, redirected to other related activities. However, the recipient must fulfil the reporting requirements for the used fund.

Reporting requirements

The organization receiving funds is responsible for project monitoring. However, the German Embassy reserves the right to visit and review projects to evaluate its progress and success. Visits to the project will be conducted by German Embassy staff. If the project does not show satisfactory progress, the Embassy will discuss its concerns with the implementing agency and if these concerns are not addressed to its satisfaction immediately, the German Embassy will discontinue the support and recall all project funds.

The implementing agency must submit a final project report with photographs describing the achievements of the project in relation to its planned objectives. Also performance indicators must be addressed.

For further information, please contact us here

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