Support for financially weak municipalities in financing EU-funded projects (Co-financing Directive – Kofi Directive)
The state of Lower Saxony supports financially weak municipalities in reducing their own contributions to EU-funded projects (including ERDF, EAFRD, ESF, EMFAF, and Interreg) and covers up to 85% of eligible expenses. Applications can be submitted annually until October 1st.
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Grant criteria
Funding objective
The objective of the co-financing guideline is to relieve financially weak municipalities in Lower Saxony in covering the necessary own contributions for their participation in selected EU fund programs (ERDF, EAFRD, ESF, ESF+, EMFF/EMFAF, and Interreg). The funding aims to enable municipalities to participate in important investment and development measures, reduce regional disparities, and strengthen spatial-structural development.
Eligible expenses
- Own contribution according to the respective funding guideline
Eligible to apply
- Public Institutions
Funding requirements
- Measure must be funded through a funding guideline for ERDF, EAFRD, ESF, ESF+, EMFF/EMFAF, or Interreg
- Funding by the main grant provider must not yet be approved at the time of application
- Significantly below-average tax revenue capacity (at least 5% below the average of the municipality size class)
- Own contribution of at least 15% of eligible expenses must be provided
- Proof of compliance with established quality criteria
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Documents required for application
- Application form
- Proof of tax revenue capacity
- Decision of the main grant provider
- Proof of quality criteria
- Proof of use
Evaluation criteria
- Below-average tax revenue capacity
- Demographic indicator
- Contribution to regional development
- Cooperative approach
- Needs-based allocation municipality/debt relief assistance
Description
Since 2020, the State of Lower Saxony has been supporting financially weak municipalities in co-financing their projects within selected EU funds and Interreg programs. The aim of the funding is to sustainably strengthen spatial-structural development and reduce regional disparities. As a non-repayable grant, the Co-financing Guideline covers up to 85% of the eligible expenses according to the funding guidelines; up to €500,000 is available per project. Eligible to apply are municipalities and their public-law associations whose average tax revenue capacity in the last three fiscal years was at least 5% below the average of their respective municipal size class. The annual submission deadline is October 1st.
Funding is provided for own contributions to EU projects in the thematic areas of infrastructure, regional development, smart cities & regions, agriculture & rural development, urban development, and digitalization. A prerequisite for funding is that the main funding procedure has not yet been approved and that the applying municipality provides an own contribution of at least 15% of the eligible expenses. In addition to proof of below-average tax capacity, compliance with specified quality criteria – for example, contribution to regional development, demographic indicators, and cooperative approaches – must be demonstrated. A complete application in written or electronic form includes the application form, the decision of the main funding body, proof of tax capacity, documents on the quality criteria, and a utilization report. Approval is granted by the respective Office for Regional State Development, which also provides advisory support.
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