Co-financing, in the context of the SGP is the ‘additional funds’ that is leveraged in cask/kind from multiple sources. It can be in many forms such as finances, technology, manpower- skilled, semi-skilled and unskilled, knowledge, information, etc. This helps and enables to develop local ownership, empowerment and undertake activities under a project that might be imperative for the success of the project but are not permissible under GEF funding.
Co-financing can be mobilized at the programme level or at the project level.
- Programme level co-financing is mostly institutional tie-ups that provide cash co-financing to the programme for a particular component (such as capacity building, up-scaling, administrative cost etc.) or generally. Co-financing at the programme level can also be in kind in terms of institutional support in administration, monitoring or expertise.
- Project level co-financing is at the level of individual projects and may be in cash or in kind. Here the proponents are encouraged to facilitate both the communities and other donor sources.
In cash Co-financing in projects:
- The financial contributions from communities
- Grants from local authorities and governments (Elected representative funds, District authorities, state government and central government schemes)
- Donations from individuals to the project
- Bank loans to Self Help Groups that is utilized in the project
In kind Co-financing in projects:
- Community’s contribution in terms of labor
- In kind material donations by community and other donors, such as building material, machinery etc.
- In kind intellectual services such as know-how, monitoring, impact assessments etc.
- Space such as office space