Swiss-Ukrainian project “Decentralization Support in Ukraine” (DESPRO) is announcing additional call for proposals among service cooperatives created within rural communities of DESPRO partner rayons of Vinnytsya and Sumy Oblasts and AR Crimea. The aim is to implement/improve decentralized mechanisms of community based water supply services.

I. General information
Swiss-Ukrainian project “Decentralization Support in Ukraine” (DESPRO) is implementing in Ukraine by SKAT and funded by Swiss Confederation through Swiss Agency for Development and Cooperation. DESPRO is aimed at ensuring effective and (cost) affordable services in water-supply and social spheres and within decentralized structures.
DESPRO Phase II (2010 – 2012) goal is to develop effective mechanisms of decentralized qualitative public services and to integrate them into national program for further expansion.
DESPRO target regions within this call for proposals are Vinnytsya and Sumy Oblasts and AR Crimea.
II. Additional Call’s for Proposals Goal and Priorities  
Call’s for proposals goal is to improve the quality and affordability of water supply services for rural population through implementing decentralized mechanisms of community based services.
Within this Call for proposals that go in line with the following priorities will be supported:
Ø     Decentralization: implementing/improving the effective decentralized mechanism of community-based water supply services;
Ø     Public-private partnership: involving private legal subjects such as service cooperatives into service provision through transferring to them water supply objects/facilities for a free use (loan);
Ø     Territorial and service cohesion: projects’ objectives should cover whole settlement’s territory and population (village, including the settlements that belongs to village territorial community);
Ø     Social mobilization:
o      stipulating the involvement and unification of the community for identified problems, promoting dialogue within the community (in particular, with active participation of local government) for project implementation;
o      grounding on principles of participatory planning and decision-making, taking into account the interests of women, children and youth as well as socially vulnerable groups;
Ø     Sustainability of results:
o      ensuring sustainability of project’s results after its completion through appropriate and effective maintenance and service mechanism;
o      setting fees for services that should cover economically justified costs for its provision;
o      supporting innovative approaches to challenge(s) solution within the project.
Projects’ thematic sphere:  centralized water-supply
Number of community projects to be supported: up to 4 within this call for proposals.
III. Participants 
Service cooperatives are invited to take part in a call for proposal: unprofitable non-governmental organizations been created within village community and officially registered in Ukraine in line with Law of Ukraine “On Cooperation”, which according to Statute may implement activities that coincide with call for proposals goal and priorities. 
IV. Conditions/requirements for co-financing
DESPRO technical support amount could be up to UAH 240 thousand.
Grant funds could cover up to 60% of total project budget. Other funds – not less than 40% of project total budget should be covered by financial contribution of organization, the executor and organizations, co-executors (including local budgets). Share of contributions of organization, the executor and organizations, co-executors is not regulated. At the same time, while considering the project proposals, preference will given to the projects with optimal share of co-financing between organization, the executor and organizations, co-executors. 
Funds of organizations, co-executors, local budgets, in particular, could be considered as co-financing even they are transferred directly to vendors/executors of goods, works and services not previously coming to bank account of organization, the project executor.
Contributions in kind from organization, the executor and organizations, co-executors as well as from other sources could not be considered as co-financing.
V. Procedures of proposals’ submission and calls for proposals prosecution
To participate in a call for proposals, organizations should submit a package of call’s documentation been prepared in a prescribed form (see attached).  
Submitted project proposals will be considered by call for proposals commission that includes representatives of DESPRO and Swiss Agency for Development and Cooperation.
VI. Key requirements to project proposals being submitted to call for proposals
When planning project’s objectives and implementing pre-project activities, organization, the executor together with co-executors should take into account following DESPRO requirements and demands:
1.      Before the project launching, not less than 75% households (their representatives) locating on the territory of project implementation are:
to create service cooperative, to choose the mechanism for further maintenance and exploitation of been created/improved water supply system;
 to identify community project goal, objectives and version for technical solution;
to identify the amount of financial contribution from households for project implementation as well as other project-related contributions (for example, labor participation, contributions in kind, etc.). 
2.      While planning and executing activities related to new construction, reconstruction, restoration, buildings’/facilities’ capital renovation within project objectives/outcomes, organization, the executor is to ensure compliance with current legislation norms and standards for construction industry as well as mandatory passing the following steps:
o      obtaining the permission for construction works in State Architectural and Construction Inspection (if necessary);
o      concluding (service) contracts for construction works (in case of specialized works – with licensed organization);
o       accepting the completed construction projects into operation/exploitation.  
3.      Organization, the executor is also responsible for following the above norms, rules and standards for construction industry by organizations, co-executors, even under conditions when organization, co-executor carries out the works/order by itself as well as the executor ensures payment and acceptance of works and services related to project objectives/outcomes.
4.      Property regime for newly created or improved goods/assets is implemented as follows:
4.1.           Assets that have an owner, after been improved (capitally repaired, reconstructed, upgraded, etc.) remains with its owner.
4.2.           Newly created (newly constructed) asset will be a property of service cooperative.
5.      Prior to construction and repair works, existing water supply objects, which belong to communal property should be transferred, under conditions of free use (loan), to service cooperative, project executor for further maintenance and exploitation.
6.      Cost of water supply services (particularly, after construction/improvement of water supply system) should be calculated and approved in accordance with current legislation.
7.      By project completion and prior to exploitation of constructed/improved water supply system, all households should install, at their own expense, individual means of consumed water accounting (meters).
8.      Village council with jurisdiction over the territory where the project will be implemented should provide the office premises to service cooperative. Usually the premises belong to communal property and given on lease under favorable conditions/terms.
9.      It is planned that the projects will be completed by not later than June 2012.
VII. call for proposals terms and terminations
1.      Deadline project proposals submission: 20th November 2011, 17.00
2.      Announcement of results: by 1st December 2011
VIII. Where to submit project proposals
Package of documents should be delivered personally or sent to:
B. Grinchenko St., 2, Office 2, Kyiv, 01001, Ukraine
Phone:  (044) 270 55 27
Contact persons:
·        Vyacheslav Sorokovsky, expert on decentralization, e-mail: v.sorokovsky@despro.org.ua
·        Vyacheslav Kozak, specialist on decentralization, e-mail: v.kozak@despro.org.ua
IX. Where you can get additional information
E-version of Regulations of Call for proposals (with detailed information on its requirements), Application Form and Budget Form is available with Rayon Working Group Coordinator.
For additional information, please, contact Vyacheslav Sorokovsky, expert on decentralization (phone: (044) 270 55 27, e-mail: v.sorokovsky@despro.org.ua) and Vyacheslav Kozak, specialist on decentralization (phone: (044) 270 55 27, e-mail: v.kozak@despro.org.ua
Good luck to you!