How a project is created

Contribution is the term used by Sida for projects and programmes. You can apply for support from Sida for different types of contributions. The process may vary slightly depending on the type of support.

Overall, it looks like this:

A potential partner organisation submits a brief proposal, known as a concept note. It describes the objectives of the contribution, a vision for how the desired change should take place (theory of change) as well as a draft budget.

Sida will often initiate the process by requesting a concept note. Based on this, Sida decides whether the contribution is relevant in relation to one of the government strategies that governs Swedish development cooperation. We also assess whether the contribution provides added value in relation to other contributions.

After receiving the concept note, Sida prepares an appraisal plan. This means reviewing whether the contribution fulfils a number of basic requirements:

• The contribution must be relevant to a strategy decided by the Swedish government. It should also provide added value in relation to other contributions within the same strategy. There also needs to be funds available within the strategy.
• The organisation must be a legal entity that is entitled to hold rights and obligations towards Sida, and may not be listed in the EU Consolidated List of Sanctions.
• The contribution must fall within the OECD/DAC definition of aid.
• Cooperation and partnership with Sida shall be within the scope of Fundamental principles for financial cooperation with Sida. Sida does not finance activities that has been defined as reasons for exclusion, for examples weapons, illegal drugs and pornography.
• Sida applies EU state aid rules to organisations with economic activities on the European single market. This is to prevent unfair competition between economic actors in Member States.

Meeting these basic requirements doesn’t guarantee that Sida will appraise your proposal or enter into partnership with your organisation.

• EU consolidated list of sanctions at the EU website
• Definition of aid at the OECD website

To perform a comprehensive appraisal Sida needs a full proposal. It could be a programme document, a strategy or similar documents. Sida doesn’t provide any templates byt expects partner organisations to use their own format tools and methods.

If Sida has determined that a proposed contribution meets the basic requirements, we will perform a comprehensive appraisal of the initiative following an established process.

The appraisal phase provides Sida with an opportunity to learn more about the potential partner, and the partner receives clarification regarding Sida’s requirements and expectations.

The appraisal concentrates on six assessment areas:

• The five perspectives that govern Swedish development cooperation: Poor people’s perspective on development, the human rights based approach, the conflict perspective, the environment and climate change perspective, and the gender perspective.
• The principles of development effectiveness: For example, the proposal must take into account the development goals of the recipient country and its population.
• Objectives and theory of change: Is the contribution likely to bring about the needed change and is it supported by the groups affected, so that the results can be sustained after the contribution has ended?
• Budget: Is it realistic and cost-effective, and are the planned budget lines relevant?
• Capacity of the partner organisation: Does it have the knowledge, resources, organisational structure, network with other actors and working methods required to achieve the proposed objectives, monitor and learn, and ensure good internal control?
• Anti-corruption: Is there a risk of corruption and how does the partner organisation plan to manage it?

Sida makes an overall assessment of the proposal. Sida may support capacity development of the partner organisations in areas where we, in dialogue, assess that it needs strengthening.

Sida also performs a risk assessment and prepares a follow-up plan.

The comprehensive appraisal forms the basis for the decision on whether to support the contribution.

The decision is a formal document through which Sida decides to support the contribution financially. The decision includes a brief clarification explaining why Sida has decided to support the contribution.

Once a decision on contribution has been made, the partner organisation and Sida sign the agreement. The agreement on contribution is the document that formally sets out the requirements and commitments placed on Sida and the cooperation partner.