Call for Proposals: Municipal Exchange Fund A4U (Austria)

Deadline: 15-May-26

The Municipal Exchange Fund A4U has launched a Call for Proposals to support municipal partnerships between Austria and Ukraine. The fund aims to strengthen Ukrainian local governance, decentralization, recovery, and EU integration through joint projects, with grants ranging from €25,000 to €50,000.

What is the Municipal Exchange Fund A4U?

The Municipal Exchange Fund A4U is a funding programme that supports structured partnerships between Austrian and Ukrainian municipalities.

It is designed to help Ukrainian municipalities strengthen:

• Local governance
• Institutional capacity
• Public service delivery
• Recovery planning
• Decentralization efforts
• EU integration readiness

This initiative is especially relevant because Ukrainian municipalities are working under war-related disruption, while also managing recovery needs and continuing reform processes.

Funding Overview

Grant Amount

• Total available funding: €250,000
• Grant size per project: €25,000 to €50,000

Payment Terms

• Funds are generally disbursed after project implementation
• Payment is made after approval of required reports
• Pre-financing up to 20% may be requested
• Pre-financing must be clearly justified in the application

Eligible Costs

Eligible costs may be incurred by both partners if they are directly linked to project implementation, such as:

• Expert input
• Mentoring
• Study visits
• Travel
• Exchange activities

Main Objectives of the Call

The programme aims to strengthen the role of Ukrainian municipalities as key actors in:

• Decentralization
• Local recovery
• European Union integration

Key Priorities

The fund supports projects that:

• Strengthen institutional capacity
• Improve municipal governance practices
• Promote inclusive and transparent decision-making
• Support sustainable socio-economic recovery
• Encourage peer-to-peer exchange between Austrian and Ukrainian municipalities
• Advance local ownership, subsidiarity, inclusiveness, and transparency

Strategic Alignment

Projects should align with:

• Ukraine’s State Strategy for Regional Development 2021–2027
• Ukraine Plan 2024–2027
• Ukraine’s EU accession process

How the Partnership Model Works

The programme funds jointly developed and jointly implemented municipal projects.

Partnership Roles

Austrian Municipality (Lead Partner)

The Austrian partner acts as the Lead Partner and is responsible for:

• Project coordination
• Financial management
• Reporting compliance
• Technical expertise
• Mentoring and institutional support

Ukrainian Municipality (Project Partner)

The Ukrainian municipality acts as the Project Partner and is the sole beneficiary of the programme.

This means the project should primarily deliver institutional benefits and practical improvements for the Ukrainian municipality.

Who is Eligible?

The call is intended for:

• Austrian municipalities serving as Lead Partners
• Ukrainian municipalities serving as Project Partners

Basic Eligibility Conditions

To be competitive, proposals should include:

• A clear Austria–Ukraine municipal partnership
• A jointly designed project
• Strong relevance to:
  • Local governance
  • Recovery
  • Decentralization
  • Institutional strengthening
  • EU integration support

What Activities Can Be Supported?

Projects should involve active participation from both partners and focus on practical municipal results.

Examples of Supported Activities

• Study visits
• Internships
• Mentoring
• Technical exchange
• Joint development of procedures
• Joint development of policy documents
• Practical governance solutions
• Institutional process improvements

Why This Fund Matters

This fund is important because Ukrainian municipalities are frontline institutions during war and recovery.

They must:

• Maintain essential public services
• Support displaced and war-affected populations
• Manage local recovery planning
• Continue decentralization reforms
• Move toward EU governance standards

Strengthening local self-government is therefore essential for:

• Community resilience
• Better service delivery
• Transparent governance
• Long-term development

Important Principles Applicants Must Address

Projects must integrate the following cross-cutting principles:

• Gender equality
• Social inclusion
• Conflict sensitivity
• Do No Harm
• Transparency

These should be reflected in:

• Project design
• Implementation approach
• Stakeholder engagement
• Reporting and accountability

How to Apply

Step-by-Step Application Approach

1. Build a municipal partnership between one Austrian municipality and one Ukrainian municipality.
2. Identify a practical local governance or recovery challenge.
3. Co-design a project with clear objectives, activities, and expected outputs.
4. Define partner roles clearly, especially the Lead Partner’s management role.
5. Prepare a realistic budget within €25,000–€50,000.
6. Justify any pre-financing request (up to 20%).
7. Show alignment with Ukraine’s recovery, decentralization, and EU integration priorities.
8. Include cross-cutting principles such as inclusion and transparency.
9. Plan for reporting, since disbursement depends on approved implementation reports.

Common Mistakes to Avoid

Applicants should avoid these common errors:

• Submitting a vague partnership concept
• Focusing only on travel or visits without practical outcomes
• Ignoring that the Ukrainian municipality is the sole beneficiary
• Providing weak explanations of the Austrian Lead Partner’s role
• Using a budget not clearly linked to activities
• Treating gender, inclusion, or transparency as generic statements
• Forgetting that most funding is paid after implementation

FAQ

1. What is the Municipal Exchange Fund A4U?

It is a funding programme supporting Austria–Ukraine municipal partnerships to strengthen Ukrainian local governance, recovery, decentralization, and EU integration.

2. How much funding is available?

The call offers €250,000 total, with individual grants from €25,000 to €50,000.

3. Who can apply?

Projects must involve:

• An Austrian municipality as Lead Partner
• A Ukrainian municipality as Project Partner

4. Who benefits from the project?

The Ukrainian municipality is the sole beneficiary, while the Austrian municipality leads and manages the project.

5. What activities are eligible?

Eligible activities may include:

• Study visits
• Internships
• Mentoring
• Technical exchange
• Policy or procedure development
• Governance improvement activities

6. Can applicants request advance funding?

Yes. Pre-financing of up to 20% can be requested if it is properly justified in the application.

7. When is the grant paid?

Funding is generally disbursed after project implementation and after the required reports are approved.

Conclusion

The Municipal Exchange Fund A4U Call for Proposals is a targeted opportunity for Austrian and Ukrainian municipalities to build strong, practical partners

For more information, visit KDZ.