Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

Serbia’s Official Development

Assistance (ODA)
Challenge Call for Proposals
Implementation of innovative solutions, in response
to COVID-19 crisis in the Republic of North Macedonia and
the Republic of Albania

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

Serbia’s Official Development Assistance (ODA)

Challenge Call for Proposals
Implementation of innovative solutions, in response to COVID-19 crisis in the Republic of
North Macedonia and the Republic of Albania

Serbia’s Official Development Assistance (ODA) Challenge Call (hereafter: The Challenge
Call) aims to support the transfer of Serbian know-how and implementation of innovative
solutions in the Republic of North Macedonia and the Republic of Albania, as partnering
countries under the Mini-Schengen regional cooperation initiative, in response to the
COVID-19 pandemic crisis. The amount of funding available for this Challenge Call is USD
200,000.

Serbia’s ODA Challenge Call is being launched under the ’Development Service
Agreement – SDG Acceleration Framework’, funded through Government financing
and implemented by the UNDP Serbia Country Office.

Background information
The COVID-19 pandemic will have a wide and far-reaching impact on health and economic
wellbeing. Some of the challenges will include disruption in supply chains, affecting
access to essential goods, including food and medical supplies, reduced demand for
key services, which will impact operations of SMEs, especially in the fields of transport,
tourism and manufacturing, possibly resulting in a general economic meltdown. The
COVID-19 also threatens to reverse the gains and potential progress made to achieve
Sustainable Development Goals (SDGs)1, with more people expected to fall back into
the poverty bracket, eroding gains in education and health, and perpetuate inequalities
among people and societies.

Taken together, these challenges issue dire warnings and call for urgent action to
step up the progress towards the achievement of SDGs, with the overall message that
conducting “business as usual” will not be enough.

With the future being shaped by the COVID-19 pandemic and humanity’s responses to
it, critical and proactive solutions, rather than reactive initiatives, are required more than
ever. A joint response across countries from multiple stakeholders is needed to sustain
socio-economic activities and resilience in the region.

In November 2020, a Memorandum of Understanding and Cooperation was signed

between the Republic of Serbia, the Republic of North Macedonia, and the Republic of
Albania on cooperation in the fight against COVID-19, under the Mini-Schengen regional
cooperation initiative.

Considering the unprecedented disruptions seen in the partner countries caused by the
COVID-19 outbreak and with the view of bringing new innovative solutions into official
development assistance, UNDP Serbia is launching a call for innovative solutions to
address the emerging development issues resulting from the global COVID-19 crisis in
the Republic of North Macedonia and the Republic of Albania, as partnering countries
1
https://sdgs.un.org/goals

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

under the Mini-Schengen regional cooperation initiative.

The 2030 Sustainable Development Agenda brought forward the most ambitious and far-
reaching approach to development, going beyond the developed/developing countries
division and challenging the status quo regarding development financing. During the
last 15 years, UNDP has become the partner of choice for new and emerging donors
in Europe and CIS, having worked with a wide range of countries, including the Czech
Republic, Cyprus, Kazakhstan, Slovakia, Romania, Russia, and Turkey. In that sense, UNDP
has helped countries position themselves in the international spheres, building their
capacities for effective international communications and official development assistance
handling. One of the mechanisms for supporting partner countries in developing and
distributing their ODA, which UNDP employs, is challenge calls, partnering with a
wide range of stakeholders, including the private sector, to support recipient countries’
development efforts. Through the SDG Acceleration Framework, such support from
UNDP to the Republic of Serbia is envisaged to aid in paving its way in ODA provision.

The Challenge Call targets legal entities (see Eligible applicants section) to generate and
share solutions to minimize the impact of COVID-19 and promote recovery of livelihoods
beyond the crisis. The ODA Challenge Call will promote and expose local innovations,
expertise, and knowledge.

Objectives
This call aims to create a compendium of home-grown solutions consistent with partner
countries’ local context and practices, which will contribute to their response to COVID-19
crisis and reduce the socio-economic impact of the pandemic.

UNDP is soliciting proposals from interested applicants for viable innovative solutions
towards partner countries’ responses to COVID-19. The Challenge Call will support
sharing Serbian expertise, know-how, and commercially viable solutions in the Republic
of North Macedonia and/or the Republic of Albania.

The Challenge Call accepts solutions to the effects of the pandemic in the following issue
areas:

• New digital services - to address the inequalities and needs in different sectors,
innovative digital solutions in the services sector are sought, which are inclusive
and sustainable.

• Low touch economies (Contactless economic activities) - to stimulate economic

growth, solutions are sought that introduce new ways of production/consumption
and support contactless economic activities, remote delivery services, and
teleworking opportunities.

• Health and Wellbeing - to support individuals and communities’ health and well-
being, innovative solutions are sought that promote the connection of individuals
and health, physical and psychosocial well-being, and other holistic ways to
improve the well-being of the population, as well as to protect service providers
and caregivers from COVID-19 and to minimize the risk of transmission.

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

The funds awarded through the Challenge Call will co-support Applicants with small-
scale non-venture funding to deploy commercially viable solutions that respond to the
defined development challenges.

The proposed Project must have a potential for financial, social, and environmental
sustainability and scale-up. All projects must be inclusive in nature, benefit the target
beneficiaries and contribute to the achievement of SDGs, rather than solely benefitting
the participating entity.

Outcomes
The Challenge Call views innovation in its broadest sense:

i a new approach, product, idea, or service that has not been tested anywhere; or

ii is new to the beneficiary country; or

iii has not been applied to the sector in question in the beneficiary country; or

iv service or business model being introduced to a target group where it has not
been tried before.

The following types of activities will be considered for funding:

a) Feasibility studies or proofs of concept: to test the proposed solutions and/or to be

able to tailor-make them. The Feasibility Study in this context is understood as technical
and technological solutions to the identified challenges in partner countries and their
valuation and identification of concrete financial instruments for their support from
international financial institutions, donors, the public budget of the local governments,
or local or international investors.

b) Solutions implementation: in case feasibility of the solutions has been tested,

proved feasible, and the partners identified, the Applicants can receive support for
the implementation of their ideas. Within implementation, the introduction of new
production processes, training of the local workforce, reimbursement of legal and
translation services and capacity building of local suppliers, raising awareness about
new products or services may be eligible.

Before applying, the Applicants are requested to develop partnerships with local partners
from the Republic of North Macedonia and/or the Republic of Albania (depending on the
country in which the proposed solution will be implemented), to assure that the solution
will be viable in local conditions. The partnership needs to be documented in the form of
a Letter of Support or Contract with the local partner.

Award amount and budget

Selected Applicants will receive funding in the amount of up to $40,000 to implement
their solution. Applicants must provide co-funding of at least 20% of the total cost of the
Project. The use of in-kind contributions as a source of co-funding is permitted.

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

Typical items that can be covered from the Challenge Fund may include, but are not
limited to:

• Salaries of project staff;

• Technology, design, business, development and other consultancy services;

• Advisory inputs;

• Small equipment and supplies;

• Training and workshop expenses;

• Costs including travel connected to the implementation of the Project.

The expenses shown above should be predicted to reflect the Project goals and should
be clearly justified following the Project objectives. Only expenditures accrued during
the Project following the Project Plan, in line with project objectives, necessary for
achieving Project outcomes, and completed by the end of the Project are eligible
for financing. All agreements with subcontractors or third parties must be submitted
with the Application and must contain a provision that the Applicant retains ownership
of all-new intellectual property and know-how that may be created during the project
implementation.

Expenses that will not be considered for financing include, but are not limited to:

• Capital expenditures;

• Interest or debt owed to any third party;

• Expenditures and provisions for possible future losses or debts;

• Items already financed through another similar scheme, program or institution,

financial awards;

• Bank and currency exchange expenses, losses, fees and penalties;

• Marketing, sales and distribution costs for promoting the technology, product or
service.

Duration of the Project

The Project must be completed until December 2021.

Eligible applicants
• Eligible Applicants include:

o Private sector entities (commercial companies);

o Public enterprises;

o Universities and research institutes.

• All Applicants must be registered in Serbia, according to national legislation.

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

• All Applicants have to establish partnerships with local partners from the Republic
of North Macedonia and/or the Republic of Albania (depending on in which country
the proposed solution will be implemented) to ensure that the solution will be
viable in local conditions. The declaration of the partnership with a local partner
from the Republic of North Macedonia and/or the Republic of Albania in the form
of the Letter of Support or Contract must be submitted in the Application phase,
as an attachment to the Application Form.

• Applicants can apply independently or in Consortia with another legal entity from
Serbia. If the Applicant is a group of legal entities that will form or have formed a
Consortia, they shall confirm in their Proposal that: (i) they have designated one
party to act as the Lead applicant, duly vested with authority to legally bind the
members of the Consortia jointly and severally, which shall be evidenced by a duly
notarized Agreement among the legal entities, and submitted as an attachment
to the Proposal; and (ii) if they are awarded the contract, the contract shall be
entered into, by and between UNDP and the designated Lead applicant, who
shall act for and on behalf of all the member entities comprising the Consortia.
The Lead Applicant will also be the main recipient of the funds vis-à-vis project
resources.

Other eligibility criteria

Entities wishing to apply to the Challenge Call need to meet the following eligibility
criteria:

• All applicants must demonstrate their capacity to implement their proposed

Project and will need to demonstrate adequate financial, material, human and
other non-financial resources to implement the proposed Project within the set
timeframe.

• The funding request is for a specific, new and innovative project that addresses
the set development challenge.

• The Project must be implemented in at least one of the partner countries: the
Republic of North Macedonia and/or the Republic of Albania.

• The proposed Project must have a potential for financial, social and environmental
sustainability and scale-up.

• All projects must be inclusive in nature and benefit the target beneficiaries
and contribute to the achievement of SDGs rather than solely benefitting the
participating entity.

• The project must demonstrate that the activities funded by the Challenge Call
will be in addition to the entity’s existing activities and that the proposed project
would not go ahead without the Challenge Call funding. The Challenge Call could
also consider projects which, if they would have gone ahead, would do so at a
much-reduced pace or scale in case of absence of the Challenge Call funding
support.

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

Application and Selection Process

Publishing of the Submission

Info-sessions
Challange Call of Applications

Review of eligibility criteria Evaluation

Award decision
and completeness of Applications

Budget negotiations Submission of additional Innovation Challenge

(if applicable) documentation Agreement Signing

* Online info session(s) will be organized after the Challenge Call is published and during
the application period. The date(s) fo the info session(s) will be published on UNDP Serbia
website and other communication channles.

Timeline
The selected Applicants shall implement their activities until December 2021.

Application submission
The Applicants must use the prescribed Application and Budget Forms when submitting
the proposal.

All Applications must be signed by an authorized person and submitted electronically

via e-mail to [email protected] by 28th June, 2021, 23.59 Belgrade time (GMT+1)
with the subject line “SUBMISSION OF THE APPLICATION - NAME OF APPLICANT/
CONSORTIA”

Only written inquiries are permitted: [email protected] with the subject line
“INQUIRY- NAME OF APPLICANT/CONSORTIA”

The deadline for requesting clarifications and inquiries is 5 working days prior to the

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

application submission deadline.

The following documents must be submitted:

• Prescribed Application Form

• Prescribed Budget Form

• CVs of core team members

• Proof of minimum of 2 years of official registration with the business registry (APR
or another registry according to the type of the Applicant) within the required line
of business; extract from the relevant registry to be submitted

• Declaration of partnership with local partner (from the Republic of North

Macedonia and/or the Republic of Albania, as appropriate) in form of a Letter of
Support or Contract

• Statement on project co-financing.

Optional:

• Any other relevant documents supporting the application such as patent

registration, certifications, additional contracts with partners from the Republic
of Serbia, etc.

General conditions:

• The deadline for submission of applications is to be strictly respected.

• In the evaluation process, only complete applications will be accepted.

• All submitted documents must be in English language, except for the official
registration documents with the APR (or another registry according to the
type of the Applicant) in the required line of business; extract from the relevant
registry as well as notarized documents in Consortia applications.
• UNDP shall examine the proposal to confirm that the Applicant has accepted
all terms and conditions under the UNDP General Terms and Conditions and
Special Conditions without any deviation or reservation.

Evaluation and selection of projects for the implementation

phase
All eligible entries received during the application phase will be screened by the UNDP
Selection Panel for completeness and adherence to criteria as described within the
Challenge Objective.

Selection Panel members shall review and evaluate the proposed projects, based on the
evaluation criteria as follows:
A. Innovative solution (introduction of a new idea, approach, product or service to a
target group) with consideration of risks (10%)
B. Development impact and project quality including intervention logic (20%)
C. Experience of management and development team (10%)

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

D. Potential for scale-up and replication (10%)

E. Long-term sustainability (financial, environmental, social) (10%)

F. Value for money and cost-effectiveness (30%)

G. Availability of co-funding (10%)

Only applications that score above 70% shall be considered for awarding the Project.

For detailed metrics for evaluation, see Annex 1.

Awarding decision
Based on the evaluation of all received Applications, the overall ranking of all received
Applications is created according to the number of points received, and the threshold
is defined by considering the available funds and the amount Applications require. The
final decision for awarding is made according to the ranking list. Only Applicants with
an evaluation score above the defined threshold can be proposed for awarding. The
awarding decision is guided by the principles of impartiality, transparency, and rational
use of funds. Following the award decision, the selected Applicants will be offered to
sign the Innovation Challenge Agreement (hereafter: Agreement). The Agreement,
among others, contains the final Project Plan and Project Budget that is not necessarily
the same as the one the Applicant submitted, resulting from negotiations with the
Applicant. Before signing the Agreement, UNDP and successful Applicants will agree on
specific activities, outputs, project milestone schedules, and indicators. Before signing
the Agreement, the Applicant must send all the required documentation. Awarding is
done under the Agreement’s general provisions, and the payments for funding shall be
completed based on UNDP regulations and rules.

Implementation and monitoring of the Projects

Implementation of the Projects

The Awardee has to carry out the Project carefully and efficiently in accordance with the
Project Plan and Project Budget, respecting provisions of the Agreement. The Awardee
is required to implement the Project in accordance with the Project Plan. Any significant
deviation from the Project Plan (i.e. changes of timetables or proposed milestones are
not achieved) requires UNDP’s prior written consent. The overall implementation will be
managed by UNDP Project Manager.

Monitoring of the Projects

The purpose of the monitoring is: (i) to assess the progress of successful Project
implementation in terms of the envisaged activties and Project goal achievements, and
(ii) to assure that financial expenditures are in accordance with the Project Budget for
the given period. Methods of monitoring may include a review of submitted progress
reports and/or on-site monitoring visits. Monitoring will ensure that key information is
regularly collected and tracked to allow progress measurement against set objectives.
The Awardee has to deliver a short, mid-term, narrative report and a detailed final
narrative report, including all key information required for tracking progress against the

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

targets. Any changes to the Project (e.g., regarding implementation, timelines, budget,
deliverables, staff, etc.) must be communicated to the Project Manager in writing as they
require written consent.

Disbursement
Disbursement of funds will be made as per milestone deliverables specified in the
Project Milestone payment schedule and agreed in the Agreement, upon their
successful submission/implementation. UNDP shall disburse payments to the Awardee
after (i) acceptance by UNDP of the invoices submitted by the Awardee, and (ii) upon
verification by UNDP that the Awardee has achieved the corresponding milestones. The
Awardee is allowed up to ten percent (10%) expenses variations from the total Project
Budget within the major budget categories. Should the expenses variations related to
any major budget category be expected to exceed ten percent, a written request for
funds reallocation must be submitted for UNDP approval. In case the Awardee fails to
perform any of its obligations under the Award Agreement, the UNDP shall be under no
obligation to issue any further payment upon termination of this Award Agreement, and
may, at its sole discretion, require that all or any part of the payments made by the UNDP
to the Awardee be repaid to the UNDP.

Impact Evaluation
All information collected and analyzed will be used to measure the success of the
Challenge Call. Success will be measured against the set indicators specified and agreed
upon in the Award Agreement. All information, and especially lessons learned, will be
documented, analyzed, and shared.

Additional questions
All questions and inquiries (written inquiries only) must be submitted to oda.challenge.
[email protected].

Only written inquiries are permitted: [email protected] with the subject line
“INQUIRY- NAME OF APPLICANT/CONSORTIA”

The deadline for requesting clarifications and inquiries is 5 working days prior to the
application submission deadline.

Clarifications will be published on the UNDP Serbia website in the section where the
Challenge Call is published.

Applicants are encouraged to frequently visit the UNDP Serbia website in order to check
for potential updates and/or questions and answers.

Any delay in UNDP’s response shall not be used as a reason for extension of the deadline
for submission unless UNDP determines that such an extension is necessary and
communicates a new deadline to the Applicants.

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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

Annex 1 – Evaluation Criteria

Eligible and complete Applications will be evaluated according to evaluation
criteria as follows:

Maximum
Elements of the Metrics for
Weighted Score
Evaluation Evaluation
(in Percentage)
0 % if not
demonstrated,
Degree of Innovation with not relevant or
Consideration of Risks questionable; up to
Degree of innovation with consideration a maximum 10 %
a) of risks, which is demonstrated by SDGs when the degree 10%
relevance, originality – i.e. new product of innovation with
or approach, new to local market/sector, consideration of risks
disruptive and transferable. is strongly and clearly
demonstrated for all of
the elements

Development Impact and Project

Quality, including Intervention Logic

Development impact, project quality 0 % if not demonstrated,

and intervention logic, which are not relevant or
demonstrated by properly set up metrics questionable; up to a
for measurement of development maximum 20 % when
impact (incl. sector benefits, number the development
b) of positively affected beneficiaries, impact, project quality 20%
impact on beneficiaries), intervention and intervention
logic (incl. clear methodology where logic are strongly
activities lead to outcomes, measurable demonstrated, relevant
indicators for outcomes, response to and not questionable for
real life conditions) and project quality all of the elements
(incl. knowledge of local conditions and
assessments preceding formulation of
the Project).

0 % if not demonstrated,
not relevant or
questionable; up to
a maximum 10 %
when the experience
of management
Experience of Management and
and development
Development Team Experience of
team is objectively
the team, which is demonstrated
demonstrated, there
by practical examples/references
c) are more than 6 10%
proving relevant expertise, relevant
practical examples/
educational and professional
references and relevant
experience and suitable knowledge
educational and
of English and local language/s.
professional experience,
knowledge of English
and local languages
is demonstrated and
above the level upper-
intermediate
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 Serbia’s Official Development Assistance (ODA) Challenge Call for Proposals

Maximum
Elements of the Metrics for
Weighted Score
Evaluation Evaluation
(in Percentage)

0 % if not
Potential for Scale up and demonstrated or poor,
Replication doesn’t fit the market
Potential for scale up and replication, and/or is not valid for
which is demonstrated in scalability the long term; up to a
(incl. building on existing technology maximum 10 % when
d) or approach, adaptable at minimum the potential for scale 10%
cost, addressing bigger need in up and replication
market) and replicability (incl. easy are objectively
to duplicate, adaptable to different demonstrated, i.e.
regions and countries, usable in other methodology/plan
sectors). with examples and
way forward

0 % if not
demonstrated,
not relevant or
Long-term Sustainability questionable; up to a
Financial, social and environment maximum 10 % when
e) sustainability, which fits the the sustainability 10%
market and is valid for the long strategy is excellent,
term. strongly demonstrates
it’s fit for market and
valid for long term for
more than 5 years

Value for Money and Cost-

effectiveness 0 % if did not prove
Value for money and cost- value for money of
effectiveness, which is reflected exceed the budget;
in balance between the overhead up to a maximum
f) costs (incl. management costs, rent, 10% when the 30%
production), production costs (incl. balance is ideal, not
raw materials, equipment, licensing questionable and
and taxes) and delivery costs (incl. without possibility of
installation and trainings, travel, risks
communication and VAT).

0 % for the required

minimum of 20% of
total project costs,
then 0.5% for every
Availability of Co-funding additional 1% co-
g) 10%
% of co-funding funding of the total
Project’s costs, up to a
maximum 10% = 40%
co-funding of total
project costs

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