Project Development Fund


The BSEC Economic Agenda, which was adopted by the Council of Ministers of the BSEC Member States in Moscow on 27 April 2001, acknowledged that in order to facilitate the elaboration and promotion of projects the concrete mechanism had to be established.

As a result, at its 7th meeting, which was held in Tirana on 25 October 2002, the Council of Ministers of Foreign Affairs adopted a resolution establishing the Project Development Fund. Following the resolution a Manual of Operations was adopted by the 10th Council (Baky, 30 April 2004). The first PDF Application was submitted though the Working Group on Transport (Baky, 1-2 October 2003) and it was approved by the Council of Ministers of Foreign Affairs in Baky on 30 April 2004.

In accordance with the Manual of Operations, the Committee of Senior Officials (Istanbul, 26-27 February 2007) launched a 3-year review process the review and assessment report on the activities of the Fund and submitted recommendations on the future of the Fund to the Council.

As a result, the 19th Council (Tirana, 23 October 2008) approved a new Manual of Operations of PDF which introduced the new rules and provisions. Furthermore, the 21st Council (Baky, 22 October 2009) approved the revised PDF technical documents (application, grant contract, etc.) which comply with the new Manual of Operations.

The Manual of Operations of 2008 prescribes that the Fund shall be managed by the Steering Committee with decision making power on the distribution of the Fund’s resources. Each BSEC Member State and BSEC Related Body shall appoint one representative to the Steering Committee.

The Fund operates on the principle of voluntary contributions from the BSEC Member States, BSEC Related Bodies, BSEC Observers and Third Party donors including States, International Institutions and Organizations, as well as the private sector.

Each BSEC Member State will seek to make voluntary contributions to the Fund, starting with the adoption of this Manual of Operations by the Council (2008). The minimum amount of a contribution for having the right to vote is 30.000 Euros.

PDF application procedure

Manual of Operations of PDF

General Conditions applicable to BSEC grant contracts under the Project Development Fund

Standard Application for funding a BSEC Project

The targeted sectors for PDF financing are those outlined in the BSEC Economic Agenda and specified in accordance with the action plans and decisions of the BSEC working groups. The working groups should periodically establish priority project areas and corresponding timeframes to enable the launching of respective calls for proposals and with due consideration of the Fund’s annual budget.

All PDF applications should contain an assessment on how the project concerned may promote the implementation of specific resolutions, decisions and recommendations of the Council, including those endorsing the declarations and action plans adopted by sectoral ministerial meetings.

Any legal entity from the 13 BSEC Member States can apply as partner.

Institutions from at least three (3) BSEC countries must participate and the project must have the eventual consent of the governments of the respective countries.

Projects are encouraged to involve more than three BSEC Member States as well as institutions from non-BSEC countries.

Partners from non-BSEC countries (Observers or other) are encouraged to participate in the project but are not eligible to the Grant.

The project application must be signed and stamped by all partners and be available in electronic version to be presented for an initial assessment at the corresponding Working Group.

It is important that the project be well written, clear and comprehensible, realistic and with a strong possibility to be implemented after the BSEC financed stage. There should be a realistic and justified possibility to ensure additional sources of funding for its implementation.

60% of the Grant is paid as soon as the project is approved by the PDF Steering Committee and a contract is signed with BSEC PERMIS.

An interim (mid-term) report as well as a final report must be submitted both with a financial part showing expenditures (all in English).

With the completion of the project, partners must present valid proof of expenditures to receive the remaining 40% of the Grant.

The Manual foresees multi-staged selection mechanism for projects to be financed from PDF:

2. Relevant Working Group;
3. Committee of Senior Officials;
4. PDF Steering Committee;

Upon completion of a project and approval of the final deliverables, the Steering Committee will forward them back to the Working Group which made the initial assessment for an ex-post evaluation and additional support for the full scale implementation of the targeted project.

For further information please contact Mr. Sergii KRAVCHENKO, Project Coordinator