Canada Fund Guidelines

CANADA FUND

加拿大基金

Fonds Canadien

CANADA FUND FOR LOCAL INITIATIVES

-- CHINA --

2006-07 PROJECT GUIDELINES

Introduction

The Canada Fund for Local Initiatives (CFLI) program is a small grants program that the Government of Canada operates in over one hundreddeveloping countries around the world. The general objective of the Canada Fund is to enhance economic, cultural, and social life of the people of eligible countries by financing small projects involving technical, economic, educational, cultural, and/or social development assistance to the local population through the Canadian Embassy/Mission.

A Canada Fund for Local Initiatives was established in China in 1985. Since that time, the Canada Fund in Chinahas supported over 1,000 small-scale projects, predominantly in poor areas of rural western China. In China, the Canada Fund seeks to improve the lives of the most disadvantaged groups and communities, particularly those in rural areas.

Programming Priorities for the Canada Fund in China

The Canada Fund in China supports projects in the following fields:

Basic Education
Health
Environment
Rural Governance
Rights of Disadvantaged Groups

Geographic Focus

The Canada Fund in China will consider proposals from the following provinces/regions:

GansuProvince
GuizhouProvince
QinghaiProvince
ShaanxiProvince
SichuanProvince
Tibet Autonomous Region
Xinjiang Uyghur Autonomous Region

Projects outside of these provinces/regionsmay occasionally be considered with the approval of the Canada Fund Committee.

Cross-Cutting Themes

Gender Equality: All projects should ensure women’s participation and should aim to address gender inequalities.

Environmental Protection: All projects should ensure that there will be no negative impact on the environment. Projects that also aim to protect the environment will receive favourable consideration.

Sustainability: All projects should include plans for building local capacity and for maintaining project results following the completion of project activities.

Participation: All projects should be initiated by local communities and should involve the active participation of beneficiaries in all project stages and decision-making processes.

How to Apply

The Canada Fund provides one-time financial support for small-scale, short-term projects that address local needs and contribute to long-term development goals. The Canada Fund does not design or implement projects, but responds to requests that come directly from local communities.

Project proposals that meet the Canada Fund’s 2006-07 programming priorities, geographic focus, and cross-cutting themes can be submitted to the Canada Fund office for consideration. Project applications should outline a proposed series of activities aimed at achieving certain objectives within a specific budget and within a limited period of time (one year or less), and should include information on the beneficiaries as well as the applicant organization.

Application forms can be obtained from the Canada Fund office, and applications can be provided in Chinese or English. Non-profit organizations are eligible to apply. Organizations that have not received grants from the Canada Fund before are advised to send materials introducing themselves to the Canada Fund before submitting proposals.

Project Budgets

Budgets should be developedusing reasonable estimates of expenses that would be required to complete project activities and achieve project results. It is expected that local contribution will cover a significant portion of the budget. Local contribution can include financial support, donated materials, and in-kind labour and services.

The maximum amount for the Canadian contribution is CAD$50,000 (approximately 350,000RMB), but project budgets are rarely of that size and applicants are advised to prepare budgets in the range of 50,000 to 150,000 RMB, though exceptions outside of this range can be made.

Eligible costs: Because all Canada Fund projects are local, community-based projects, it is expected that budget costs will match local market rates. Project partners should aim to get the best, competitive prices for goods, services, and contracts. Project management costs should represent a minimal proportion of the budget.

Ineligible costs: The Canada Fund does not cover stipends/incentives for trainees, taxes, etc. In general, the Canada Fund does not support disaster relief, research, administrative costs, or the purchase of high-maintenance equipment. The Canada Fund cannot fund projects whose main purpose is to finance the core operations or recurrent costs of a group or organization.

Once a project is approved and funds are disbursed, no further financial support will be provided beyond the authorized project budget for any given project.

Project Approval Process

1)Project Proposals: Project proposals that are based on local needs and designed together with local communities are submitted to the Canada Fund.

2)Evaluating Proposals: The Canada Fund makes a preliminary selection of the strongest proposals that fall within the Canada Fund’s programming priorities, geographic focus, and budget limitations. The Canada Fund Coordinator obtains additional information from the local partner and conducts an on-site investigation to determine eligibility for a Canada Fund grant.

3)Review by the Canada Fund Committee: If a proposed project seems appropriate for Canada Fund support, the Coordinator makes a recommendation, with proposed budget details, to the Canada Fund Committee at the Canadian Embassy in Beijing. The Committee then approves or rejects proposals; it may ask for additional information before making a decision.

4)Approval by the Canadian Ambassador: After a project is approved by the Canada Fund Committee, the proposal is forwarded to the Canadian Ambassador to China. The Ambassador then approves or rejects proposals; he/she may ask for additional information before making the final decision.

5)Agreements: If the Ambassador approves the project, an agreement will be prepared for signature by the recipient organization and the Ambassador. This represents an agreement between the Canadian Embassy and the local organization.

6)Advance Payments (First Disbursement of Funds): Once the agreement is signed and an original signed copy is returned to the Canada Fund, an advance payment of project funds (first disbursement) is made to the local partner, which then provides the Canada Fund with a work plan for the project. Recipient organizations are also provided with basic guidelines on financial management and reporting.

7)Project Implementation: Projects are implemented according to the agreement. Major changes to the project must be approved by the Canada Fund. Funds spent on unapproved items are subject to recovery by the Canadian Embassy. A brief interim narrative and financial report is submitted to the Canada Fund on the progress of the project.

8)Final Report: A final narrative project report and financial report are provided to the Canada Fund according to the deadline stipulated in the project agreement. Canada Fund grant recipients are expected to maintain project files and financial records for at least five years.

9)Payment of Remaining Funds (Final Disbursement of Funds): If the final report is satisfactory, the remaining funds are provided to the partner. Project implementers and beneficiary communities continue to follow-up to ensure that the results of the project are sustained and that beneficiaries have the skills and support they need.

10)Monitoring, Evaluation and Audits: The Canada Fund reserves the right to visit and inspect projects at any time. The Canada Fund hires independent monitors and auditing companies to conduct monitoring and evaluation of projects. Lessons learned are shared.

Contact Information

Canada Fund

Canada-China Cooperation Support Unit

Rooms C712/C713, Beijing Lufthansa Center

50 Liangmaqiao Road, Beijing 100016

Tel: (010) 6465 1520, ext. 121 / Fax: (010) 6465 1573 /

E-mail: