Grant Program to Support and Development of Micro-Clusters on Banks of the Nistru River (Moldova)

The project aims to increase SMEs’ access to export promotion mechanisms and provide tailored support and capacity building to meet their specific needs.

The project focuses on the development of a functional mechanism for the association of enterprises on both banks. The mechanism aims to bring businesses from both banks together to create greater added value through joint production and increased export capabilities.

In this context, through a training and capacity building activity, the AdTrade Project has chosen 6 beneficiary micro-regions, for which comprehensive technical assistance is currently being offered in the field of local economic development through micro-clustering. Also, within this process, micro-cluster organizational structures (with delegated management entities) were institutionalized in the beneficiary micro-regions and medium-term development plans (3 years) were developed.

According to the project document and the approved budget, through a closed competition between the 6 institutionalized micro-clusters, the AdTrade Project is going to select 12 development investment projects to provide support in the co-financing of their proposed intervention.

Purpose and Objectives 

• The purpose of this Grants Program is to provide financial support (grants) to six micro-Clusters established within the AdTrade Project, facilitating the implementation of Development Roadmaps, with the aim of accelerating local economic development in three distinct beneficiary micro-regions.
• This funding program is based on 2 fundamental general objectives:
  • Developing and strengthening economic partnerships on both banks of the Dniester River by strengthening cooperation and economic integration between the business communities on both banks of the Dniester River. The program aims to explore untapped potential by encouraging closer economic ties, enhancing competitiveness and promoting sustainable development through lasting collaboration. By harnessing the strengths and unique capabilities of local businesses, the program aims to create a dynamic network of clusters that will serve as catalysts for economic growth and innovation.
  • Developing and strengthening the aggregate export capacities of economic partnerships on both banks of the Dniester River by creating platforms for innovation and collaboration, where businesses can exchange resources, knowledge and technologies, creating synergies by creating value chains, which will stimulating economic growth, will increase international competitiveness and ensure long-term sustainability through export orientation.

Program Lots

• The Grants Program is segmented into two distinct LOTs, each aligned with its specific objectives and set results:
  • Lot 1: Strengthening the competitiveness of the clusters on both banks of the Dniester river
    • Development of the missing links of the value chains on both banks of the Dniester river
    • Supporting product, technological process, marketing and business process organization innovations
    • Strengthening the weak links of the value chains on both banks of the Dniester river
  • Lot 2: Development and expansion of value chains on both banks of the Dniester River
    • Strengthening vertical cooperation between cluster members
    • Strengthening horizontal cooperation between cluster members
    • Economic integration of value chains on both banks of the Dniester

Funding Information

• The maximum amount available for this Grant Program is US$1,300,000.
• The structure of the Grants Program aims to provide support for 2 projects within each micro-cluster (1 project for each lot), thus providing financial assistance for a total of 12 projects.
• Lot 1: Strengthening the competitiveness of the clusters on both banks of the Dniester river
  • Maximum 1 project per cluster
  • Maximum funding per project – 145,000 USD
• Lot 2: Development and expansion of value chains on both banks of the Dniester River
  • Maximum 1 project per cluster
  • Maximum funding per project – 145,000 USD
• The maximum amount that will be awarded to a cluster will not exceed $216,666.

Eligible Applicants   

• The applicant – leader
• Eligible lead applicants for the grant program can only be non-governmental and non-profit organizations, selected and approved by the members of the micro-cluster.
• Note: An entity can present itself as the Lead Applicant for only one batch, but it has the possibility to participate as a partner in several batches (and benefit from financial assistance within them).
• Co-applicants (partners) eligible for financial support can be the following types of micro-cluster members:
  • Local public associations whose main field of activity is local economic development or community development
  • Research-development-education entities
  • Private Referral
  • Entrepreneurs with natural person status
  • Business association
  • Cooperative production
• Subjects of funding contracts with the AdTrade project will be the lead applicants.
• Interventions can be financed, only if the project will expressly provide for this fact in the project proposal, detailing the financing and co-financing amounts.
• Both applicants and co-applicants (in case of sub-funding) must:
  • To be registered in accordance with the provisions of the legislation in force, and
  • Not to be in a state of insolvency, bankruptcy, reorganization or any other legal proceedings;
  • To have no debts towards the national public budgets.
• Note: The responsibilities of the applicant and the beneficiaries of support, as well as the sharing of the budget, in the implementation of the projects are to be documented on the basis of an implementation agreement, which will be concluded by the partners until the grant contract with the AdTrade project is signed.

For more information, visit UNDP.