Guideline of the BIMP-EAGA-the Republic of Korea (ROK)

Cooperation Fund (BKCF) Projects (2024)

1 INTRODUCTION
The Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area
(BIMP-EAGA)- Republic of Korea (ROK) Cooperation Fund (BKCF) was established in
2021 by the ROK. It aims to contribute to promoting inclusive and balanced growth in
the Southeast Asia region and ASEAN Connectivity by strengthening the partnership
between the BIMP-EAGA and the ROK.
It also aims to support the BIMP-EAGA’s Vision 2025 (BEV 2025) of a “Resilient,
Inclusive, Sustainable and Economically competitive (R.I.S.E) BIMP-EAGA to narrow
development gap” which was adopted in 2017. As of 2023, four strategic thrusts listed
in the BEV 2025 namely Connectivity, Environment, Tourism, and Agriculture and
Fisheries (comprising the Food Basket pillar) are selected as the priority areas of the
BKCF fund project.
The Fund will provide grants for individual member countries or subregional programs
and projects to address strategic country needs and priorities of BIMP-EAGA.
The Global Green Growth Institute (GGGI) has been designated as a depositary of the
BKCF and will manage the BKCF.

2 THE BKCF’S PRIORITY SECTORS AND AREAS

Among the list of sectors from the Vision 2025, prioritization was given to the following
sectors through consultations between BIMP-EAGA and the ROK. The sectors may be
updated at a later point, if required, through an agreement between BIMP-EAGA and
the ROK:

• Environment: It will include projects with high potential for environmental and
climate mitigation and adaptation impacts that promote inclusive green growth
in areas including - but not limited to : water management, waste management
and sanitation, renewable energy, energy efficiency, green buildings, green
finance including green bonds, inclusive green entrepreneurship, nature-based
solutions including REDD++ and climate-smart agriculture and bioeconomy.

• Tourism: It will include projects relating to eco-friendly and sustainable tourism

development as well as tourism-related planning and infrastructure, with
particular support to tourist-dependent communities that have suffered due to
the Covid-19 pandemic crisis.

Ver. 4.0 1
 • Connectivity: It will include - but not be limited to - low carbon transport, ICT
and digital transformation, trade and investment facilitation, and the
enhancement of the region’s climate change knowledge economy.

• Agriculture and Fisheries: It will include projects relating to the long-term food
security of the subregion, the development of high-quality agro-fisheries
products, and sustainable livelihood for farmers and fisherfolk.

All projects in all sectors that are identified in the cooperation between BIMP -EAGA
and ROK must explicitly include targets and outcomes/outputs for gender and social
inclusion where applicable and relevant.

3 ELIGIBILITY OF PROPONENT FOR PROJECT APPLICATION

• Government agencies, public sector institutes, academic and research institutes,
NGOs, private sector entities or any other autonomous institutes from member
countries of BIMP-EAGA and the ROK are eligible to submit funding requests.

• Individuals are not eligible to apply for the fund.

• GGGI can participate as a delivery partner to support the implementation of

requested components of the approved project with an endorsement of the BIMP-
EAGA country or countries where the proposed project will be implemented.

In order to be eligible for grant, the proponent shall not:

• be included in the Consolidated United Nations Security Council Sanctions List
and/or debarred by Multilateral Development Banks; and

• have been declared ineligible by GGGI or ROK to participate in a call for proposal
or included in an ineligibility list of GGGI or ROK.

4 GRANT AWARD PERIOD

The BKCF welcomes proposals for one year or two years. This is performance-based
funding. The second-year amount for awarded two-year projects will be approved
based on the satisfactory performance of the first year.

5 GRANT AWARD RANGE

BKCF accepts proposals for a one year grant for a minimum of USD 100,000 and a
maximum of USD 500,000.

Ver. 4.0 2
The total amount for a two-year grant proposal will be between USD 200,000 and USD
500,000. In the case of multiple countries or BIMP-EAGA regional projects, a maximum
of USD 250,000 per country could be allowed.

6 APPLICATION PROCESS
In collaboration with BIMP-EAGA countries and the ROK, GGGI will provide clear
guidance for the application process, selection, and award of grants in a transparent
manner. The following are the steps of the application process:

6.1 SUBMISSION OF PROPOSAL

The proponent shall submit the proposal and required documents to bkcf@gggi.org
with the subject of [Submission] Project Title. The submission process shall take no
longer than 40 business days. The submission schedule will be published on the
GGGI BKCF website (https://gggi.org/global-program/bkcf/).

6.2 GGGI REVIEW AND SHORTLISTING

The GGGI Review Committee will review and conduct a screening of proposals for
shortlisting. The review process will be divided into two steps. First, GGGI will
conduct a documentation review. After the initial screening, GGGI will contact
selected proponents individually and conduct interview, with BIMP-EAGA National
Secretariat members participating as observers.
During the screening process, GGGI will also conduct a due diligence review of the
proponents to ascertain the proponent’s financial, operational, and organizational
capacity, integrity, and safeguards as required by GGGI’s policies.
The shortlisted projects will be submitted for approval to a Steering Committee to
be chaired by the Director-General and will be comprised of the senior management
team of GGGI. The GGGI review process shall take no longer than 40 business days.
Proponents can be requested to revise the proposal at the review stage. If the
proponent does not submit the revised proposal within 10 business days after the
receipt of the revision request, GGGI will consider that the proposal has been
withdrawn.
During the period of communication with GGGI, the proponent can request an
extension for an additional 10 business days (maximum). If the proposal is rejected
or regarded to be withdrawn at this stage, the proponent will be notified by GGGI.

6.3 REVIEW OF BIMP-EAGA NATIONAL SECRETARIAT AND THE ROK

GGGI will prepare the project shortlist and a consolidated project proposal report
including an overview of the project purpose, cooperation sector/area, expected

Ver. 4.0 3
 outcomes and outputs, project budget estimate and send them to the BIMP-EAGA
national secretariat and the ROK to evaluate the shortlist. The BIMP-EAGA national
secretariat and the ROK review will take a maximum of 30 business days.

6.4 APPROVAL OF THE BIMP-EAGA AND THE ROK

When the proposed project shortlisting is approved by BIMP-EAGA countries and
the ROK during the Senior Officials’ Meeting, the ROK will send an official letter to
GGGI with the list of approved projects. GGGI will officially inform selected
proponents about the project preparatory work and contract signing. The process is
expected to be completed within 30 business days (maximum).

7 OWNERSHIP OF BKCF PROJECT OUTPUTS

All the outputs and deliverables generated from BKCF programs/projects will belong
to BIMP-EAGA and ROK. The use of project deliverables and generated outputs must
be approved by BIMP-EAGA and ROK with advice from GGGI.

8 PROJECT INCEPTION AND IMPLEMENTATION

The proponent is prohibited from implementing the project until GGGI issues the
official final approval. GGGI has the right to reject project funding if project
implementation is not undertaken in accordance with the agreed outcomes of the
approved project. Proponents can be requested to revise the proposal, its annexes,
and the Due Diligence during the contract signing phase.
When the contract between GGGI and the proponent is signed, the proponent must
submit an Updated Project Implementation Plan to GGGI. The Updated Project
Implementation Plan will include an activity-based calendar and a brief narrative to
describe the approach for each output.
After the Updated Project Implementation Plan is submitted to GGGI, GGGI will review
the Updated Project Implementation Plan and make comments, if any, within 10
business days for the revision of the Updated Project Implementation Plan.
The proponent needs to submit the Updated Project Implementation Plan and the first
invoice in accordance with the approved budget within 7 business days from the
receipt of GGGI comments.
Upon the receipt and approval of the Updated Project Implementation Plan and signed
Invoice from the proponent, GGGI will disburse the approved budget in accordance
with the budget disbursement plan in the contract. All disbursements to proponents
will be made with prior written approval from ROK.

Ver. 4.0 4
The maximum of the initial disbursement shall not exceed 20 percent of the approved
budget for single and multi-year projects.
The proponents should have the tripartite meeting for inception with concerned
government authorities and target local government authorities (municipal, provincial
or state level) in close consultation with GGGI. GGGI may participate in the kick-off
meeting in person or virtually. The proponents should also have the tripartite meeting
for wrap-up during the last quarter of project implementation with the same concerned
authorities prior to the project completion.

9 MONITORING AND EVALUATION AND FUND

DISBURSEMENT MECHANISM

9.1 REPORTING TO GGGI, ROK AND BIMP-EAGA

Proponents must submit the following documents in accordance with GGGI’s
guideline:
• Every 6 months after project launch, the project proponent will present a Project
Progress Report including a Financial Report with an Updated Project
Implementation Plan. Any risks or delays in project implementation should be
described in detail along with the mitigation strategies.

• For two-year projects, in addition to the 6 months project reports, the

proponents submit an Annual Report to GGGI, ROK, and BIMP-EAGA at the end
of the first year. GGGI will provide a template to all project leads that follows the
institute’s reporting framework.

• Project implementers will submit all deliverables and reports to the project
proponent, who in turn, will approve the reports and deliverables and submit to
GGGI. At any given time between two reporting periods, GGGI, ROK and BIMP-
EAGA may ask for specific progress reporting as necessary.

Schedule for Project Reporting

Single year project Multi-year project

• Updated Implementation • Updated Implementation
Project Start Plan (7 days after contract Plan (7 days after contract
signature) signature)
• Progress Report • Progress Report
• Mid-term • Mid-term
6 months • Updated Implementation • Updated Implementation
Financial Report Financial Report
Plan Plan
• Annual Report
• Final Financial • Annual
12 months • Project Completion Report • Updated Implementation
Report Financial Report
Plan

Ver. 4.0 5
 • Progress Report
• Mid-term
18 months • Updated Implementation
Financial Report
N/A Plan
• Final Financial
24 months • Project Completion Report
Report

9.2 DISCLOSURE OF PROJECT DOCUMENTS

GGGI may disclose the project information to the public, upon the receipt of the
agreement of project proponents.

9.3 SUBSEQUENT TRANCHE(S) OF FUND DISBURSEMENT

Following the initial fund disbursement, the proponents may apply for subsequent
disbursement tranche(s) by submitting one copy of the relevant deliverable(s) set
out under the Project Deliverables (Annex 1 of the project proposal template) and
signed invoice to GGGI. Please see Annex 1 for the deliverable schedule. GGGI will
review the deliverable(s) and make comments, if any, within 10 business days for the
revision of the deliverable(s).
Upon the review and approval of revised deliverable(s), GGGI will disburse the
approved amount in accordance with the agreed disbursement schedule in the
Project Deliverables with prior written approval from ROK.

10 PROJECT COMPLETION

10.1 SUBMISSION OF PROJECT COMPLETION AND FINANCIAL REPORT

Proponents must submit 1) Draft Project Completion Report, 2) the Final Financial
Report, and 3) the Financial Audit Report to GGGI within 30 business days of the
completion date of the project. After GGGI’s review, the proponents must submit
the Revised Project Completion Report reflecting GGGI’s comments, if any.
If proponents have not submitted the Project Completion Report, payment of the
last tranche of fund disbursement (15% of the approved budget) will be withheld
and funding for the next project, if any, will also be withheld until the pending Project
Completion Report is submitted and approved. The Final Project Completion Report
shall be reviewed by GGGI. After a review of the Project Completion Report, GGGI
will circulate a final report along with the Project Completion Report, Final Financial
Report, and its evaluation to BIMP-EAGA national secretariat and ROK for review.

10.2 FINANCIAL REPORT AND FINANCIAL AUDIT REPORT

The Final Financial Report and Financial Audit Report shall be submitted within 30
business days of the completion date of the project. The Final Financial Report will
be approved and signed by the proponent’s senior financial officer. Disbursement of

Ver. 4.0 6
 the final financial tranche shall take place within 20 business days of the receipt of
the final completed Financial Report, incorporating GGGI comments, if any.
GGGI Finance Team will review the Financial Report and Financial Audit Report. Any
findings during the verification process should be followed up and settled (for
instance, miscalculation of expenditures, deviation from the approved budget
proposal, and others) by the GGGI Finance Team. If deviations from the approved
budget are found during the verification process, the proponents will refund any
amounts paid to them with respect to claims which were not accounted for under
the approved budget. GGGI informs the proponent of the amount of final
disbursement or unspent balance and/or interest earned from the project fund to
be refunded to GGGI.
Additionally, for projects with a total budget exceeding USD 300,000, all expenses
should be reviewed by an independent and reliable audit firm. The proponent must
allocate a budget for auditing purposes.
Once all the follow-up actions have been taken and settled, GGGI will inform the
ROK accordingly.

10.3 REFUND OF UNSPENT BALANCE AND ACCRUED INTEREST

The unspent balance of the project budget and any accrued interest earned from
the project fund shall be returned to the BKCF account within 40 business days after
the completion of the projects.

11 CONTACT
If proponents have any queries or require support from GGGI, the proponents can send
an email to following address for consultation: bkcf@gggi.org

Ver. 4.0 7