The Sub-national governance programme II (SNG-II) is aimed at strengthening local and provincial governments and building sustainable institutions in Punjab and Khyber Pakhtunkhwa (KP) to improve the way provincial and local governments manage their planning and finances. SNG will help these governments to deliver better services for their 140 million people, particularly the poor. The programme will work towards this aim by improving government’s planning and budgeting capacities, creating effective and accountable institutions, enhancing fiscal space by driving both efficiencies in expenditures and mobilising greater revenues, implementing robust PFM systems and sustainably integrating innovation and inclusion.

The Innovation Challenge Fund is a competitive grant fund around a pre-defined theme with at least four funding rounds through the programme life. It seeks to finance innovative and potentially scalable pilot approaches to build evidence of what works to improve systems for better service delivery that in particular meet the needs of poor and marginalised people of Punjab and Khyber Pakhtunkhwa under SNG-II.

1. Public Financial Management & Enhancing Fiscal Space (expected launch in March 2020)
2. Planning and governance (expected launch in June 2020)
3. Local Government Capacity & Municipal Services (expected launch in October 2020)
4. Transparency, Accountability & Inclusion (expected launch in February 2022)

The maximum project duration allowed will be 15 months and there is no defined minimum.

Maximum funding for a single pilot will be up to £300,000.

The ICF is open for ideas to all, as SNG believes that good ideas can come from anywhere weather government institutions, civil society or the private sector. However, Individuals will have to partner with a registered entity to meet eligibility requirements provided in the terms sheet.

The application process has two stages. In the first stage, there is an online submission of a concept note outlining the project idea and detail of applicant and demonstrating that both meet the eligibility criteria. In the second stage, the concept notes that satisfy the eligibility and are selected for next round after the appraisal will be asked to submit a full business case for the project. Applications will be reviewed, and successful applicants will be granted funding after award decision by the competent authority.

Applicants can submit their project concept notes online through the SNG’s website, or they can send the concept notes on challenge fund’s email address or by mail.

Within 40 days of the last date of submission of concept notes, as per evaluation criteria the projects shortlisted will be notified to submit their Proposals.

Within one month of issuing of the RFP.

It can be at either provincial or district level, but if it is at district level it must be within SNG’s pilot districts.

In Punjab: Sialkot, Kasur, Nankana Sahib, Multan, Bahawalpur and Rahim Yar Khan.
In KP:Swat, Lower Dir, Bajaur, Shangla, Haripur, Swabi, Buner, Manserah, Kohat, Hangu, Lakki Marwat and Bannu.

The idea can be specific to one of these districts or all of them.

If the applicant is from the public sector, no contribution is required. However, if they are from the private sector, applicants must contribute their own resources to the project, bearing at least 20% of the total project cost. These contributions can be made both in cash and in-kind.

Please emails at [email protected]