EU Trust Fund for Colombia calls for projects

The newest European Union trust fund, officially launched in Dec. 2016, is set up to support the peace process in Colombia and is now encouraging donors to the fund to submit proposals. With a focus on the most conflict-affected rural areas over the past 50 years, the European Commission has published this week the strategic and technical criteria to evaluate the proposals. The EU Trust Fund for Colombia combines funds from the EU’s general budget through the Development Cooperation Instrument, the European Humanitarian Aid and Civil Protection, and 19 EU Member states. Since the signature of the trust fund in 2016, there have not been further pledges. In total, these cooperation funds amount to approximately 95 million euros. Furthermore, the European Union is also mobilizing other instruments to support the Colombian peace-building process: 28 million euros from the instrument contributing to stability and peace in support of the Colombian government’s Rapid Response Plan, and up to 400 million euros in loans from the European Investment Bank. In total, the EU is mobilizing almost 600 million euros. As of now, only governmental agencies from the member states who contributed to the trust fund and the government of Colombia are allowed to submit proposals for projects to be funded under the 95 million euros trust fund. Devex has learned that there is an open call for civil society organizations planned for the future. The projects must be aligned with the EU Trust Fund Strategy, which was agreed upon the Colombian government. The main objective is to support the peace agreement between the government and the FARC rebel group by developing local institutions. In this line, the fund seeks to support programs related to government reform, decentralization, citizen participation and civil society strengthening in rural remote areas. Acknowledging the size and nature of the challenge, the fund will seek to involve nongovernmental organizations and local leaders and develop a comprehensive agricultural policy and productive economy not based on illicit crops. The EU looks to fund initiatives involving cooperatives, rural credit, reduction of regional disparities, renewable energy, denominations of origin, bio and fair trade production and rural tourism, among others. To encourage the sustainability of the project, the EU hopes to engage the private sector to bring investments to the territories, leverage funds if possible and promote ecological, innovative and tech-based solutions. The projects will also have to follow principles of gender equality and human rights, with a special regard to the needs of girls and women affected by the conflict. The proposed projects will be submitted to the trust fund manager, based in the EU Delegation to Colombia, who will then present the action to the Colombian government for endorsement, before it is presented to the Trust Fund Operational Committee for approval. This is the fourth European Union trust fund set up since the change of financial regulation applicable to the EU budget in 2013. The change allowed the European Commission to create and manage multi-donor trust funds in the field of the European external action. The European Trust Fund for the Central African Republic (Bekou Trust Fund) and the EU Regional Trust Fund in response to the Syrian Crisis (Madad Fund) were set up in 2014. The third, the largest one so far with 2.6 billion euros pledged, the EU Emergency Trust Fund for Africa for stability and addressing root causes of irregular migration and displaced persons in Africa was launched in Nov. 2015. EU trust funds are ad hoc financial instruments that usually involve faster decision-making than the traditional multiannual programs the Europeaid project cycle follows. Particularly, multi-donor trust funds set by the commission are meant to be for emergency, post-emergency or thematic actions that require a more flexible and comprehensive EU joint response. The pooling of resources also invites better coordination among donor interventions. Check out more practical business and development advice online, and subscribe to Money Matters to receive the latest contract award and shortlist announcements, and procurement and fundraising news.