EU and UNDP Open Innovation Finance Challenge to Four Eastern Cities
Municipalities in Armenia, Moldova, North Macedonia and Ukraine can apply by 13 November for grants of up to US$20,000 to design local financing solutions.
The story in focus
UNDP and the EU have opened a Call for Interest under the Innovative Finance Challenge for cities in Armenia, Moldova, North Macedonia and Ukraine. Selected municipalities receive advisory support and up to US$20,000 each to design financing mechanisms targeting concrete local bottlenecks. Applications close 13 November 2026.
- The challenge covers municipalities in Armenia, Moldova, North Macedonia and Ukraine.
- Each selected city can receive up to US$20,000 plus tailored technical advisory support.
- Participating municipalities must co-finance at least 10% of the support, in cash or in kind.
What the challenge offers
The United Nations Development Programme, through the Mayors for Economic Growth Facility funded by the European Union, and the City Experiment Fund, funded by Slovakia's Ministry of Finance, announced the call on 16 October 2026 in Istanbul. It invites municipalities in four countries to propose financing solutions aimed at a specific bottleneck, such as municipal revenue, access to finance, private-sector engagement, community participation or investment readiness.
Examples named in the announcement include revolving funds, community co-funding platforms, municipal asset management and monetization, property tax enhancement, municipal bonds and community land trusts. Cities may also submit their own approaches. The programme states that proposals should enable investment in local development rather than act as generic revenue tools.
Terms and timeline
Selected cities are to receive tailored technical advisory support and financial assistance of up to US$20,000 each. They must contribute co-financing equal to at least 10% of the support received, either in cash or in kind.
Applications are due 13 November 2026. Selected municipalities are expected to take part from January to November 2027. Guidance notes, eligibility criteria and application materials are available through the programme's published links.
Programme background
The City Experiment Fund works with municipalities across Europe and Central Asia on urban challenges through innovation and experimentation, supported by Slovakia's finance ministry. The EU launched the Mayors for Economic Growth initiative in 2017 and has funded it since; UNDP has managed it since 2021 with the EU, local authorities and other partners.
How much funding can a selected city receive, and what co-financing is required?
Each selected municipality can receive up to US$20,000 in financial assistance plus tailored technical advisory support. It must provide co-financing of at least 10% of that support, paid in cash or in kind.
Sources & further reading
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