Fund for Local Cooperation

The Embassy of Finland funds selected projects of Nepalese non-governmental organizations through the Fund for Local Cooperation (FLC). Annually the amount of FLC is EUR 500 000.

The FLC is used to promote the objectives of Finland’s Development Policy Programme: reduction of poverty; promotion of equality, democracy and human rights; prevention of environmental threats; and increase of worldwide security and economic interaction. Particular attention is paid to projects that strengthen the civil society; increase social equality and equality between women and men; improve transparency in society; and support the maintenance of local cultural identity. Special emphasis is put on the districts with low Human Development Index (HDI) and on the marginalized and excluded groups.

The FLC may also be used, where appropriate, to support the creation of business contacts between local and Finnish companies as well as cooperation between institutions.

The Embassy funds projects that fall under following two main components

1. Peace Building and Conflict Transformation

• Promotion of Human and Civic Rights Situation
• Strengthening of Democratic Processes through Political, Economical, Social and Cultural Inclusion
• Rehabilitation and Reconciliation

2. Innovative ideas linked with the Finnish Development Policy Programme 

See the ongoing FLC Projects funded by the Embassy of Finland:

 Ongoing FLC Projects (PDF, 1 page, 199 kB)

Application Process

Projects and activities that address the issues that fall under either of the two components of the FLC as outlined above are eligible to apply for the grant. The organization applying for a grant should clearly state in the project proposal, under which component its project proposal falls. Only in exceptional cases projects outside the components may be funded.

Project proposals can be submitted to the Embassy throughout the year and should be dated, signed and include organization's contact information (address, name, name of contact person, email address, telephone number).

The Embassy has selection meetings three times a year in which all signed and dated proposals are discussed. After selection is done, Embassy will send a letter to the organizations whose proposals are rejected and contact the organizations whose proposals are approved. If, after submitting the proposal, the organization does not hear anything from the Embassy (sometimes letters and proposals get lost in the post), it is possible to send an inquiry by email (sanomat.kat@formin.fi). 

Schedule for submitting applications

The proposals may be written using the project proposal format below or using organisation's own format. All the proposals should, however, include the information required in the Embassy's format.

The FLC Project Proposal Format and FLC Guidelines can be downloaded here:

 FLC Project Proposal Format (RTF, 7 pages, 373 kB)

 FLC Guidelines (PDF, 8 pages, 593 kB)

A detailed budget plan should be submitted to the Embassy together with the project proposal. Budget planning should be done in consistence with the project activities and be as detailed as possible. For bigger investments, quotations should be used as a base for budget planning to prevent large miscalculations.

Budget planning process should be done bottom-up on the principle that the local partner organizations are in the best position to know their needs.

To keep the administrational costs low and to build ownership, the partner organizations are encouraged to contribute their available human resources, office space, equipment and facilities for the project activities and to count them as its own contribution in the budget.

Contingency may be used to cover unexpected costs. These unexpected costs can include for example bank charges and exchange rate fluctuations. Contingency cannot exceed 5–7 % of total project cost.

The budget should be presented in Nepalese rupees, but it should be noted that the maximum Finnish contribution to the total budget is agreed in Euros according to the Finnish Ministry for Foreign Affairs' exchange rate at the time of signing the contract.

Applications should be addressed to Embassy of Finland, Fund for Local Cooperation, P.O. Box 2126, Bishalnagar, Kathmandu. Only signed and dated applications are processed.

Rules of thumb for organizations interested in applying

Eligible Projects

• Only the projects with clearly set objectives, strategies, interventions/activities and expected results can be funded
• All projects have to meet the ODA (Official Development Aid) criteria set by OECD
• Proposals from local actors (Nepalese) of civil society (non-governmental organisations, institutions of science and technology, independent media, public corporations and cultural institutions e.g. museums, libraries and theatres, chambers of commerce and commercial associations, interest organisations, foundations or religious communities)

Eligible Organizations/institutions

• The organisation applying must be registered and must have at least one year of experience in similar kind of activities
• Affiliated to Social Welfare Council
• Obtained Permanent Account Number (PAN) from Inland Revenue Office

Ineligible Organizations/institutions

•  No funding to the government, ministries, municipalities or village development committees
• No funding to an unregistered association or organisation
• No funding to support the activities of a political party
• No funding to INGOs

Ineligible activities or interventions

• No funding for basic research
• No funding to individual cultural events, charity or humanitarian aid
• The FLC is not used to provide for grant, scholarship or assistance for the applicant's personal use or project
• No funding for purchasing land, to a fund or for building the capital of microloan systems

For more information on the Fund for Local Cooperation, please contact  either
Mr. Matti Väänänen or Dr. Munni Sharma.

Programme Coordinator Matti Väänänen
Tel (+977-1) 4416 636
E-mail: sanomat.kat@formin.fi

Programme Coordinator Munni Sharma
Tel: (+977-1) 4416 636, 4417 221
E-mail: sanomat.kat@formin.fi