Grant

Funding for Model Projects Smart Cities – Urban Development and Digitalization

Grant for municipal smart city model projects for sustainable digital modernization (integrated urban development), 65% of costs (up to €2.5 million in Phase A, €15 million in Phase B), applications once per year; currently no applications possible.

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Grant criteria

Application level: Advanced
Funding amount: €2,500,000 for Phase A and €15,000,000 for Phase B
Funding rate: 65% - 90%

Funding objective

The funding supports municipalities in the development and implementation of integrated smart city strategies for sustainable digital modernization as well as for improving quality of life through cross-sectoral urban development measures.

Eligible expenses

  • Personnel and material costs (strategy and concept development, consulting services, thematic training)
  • Initial investments in Phase A
  • Capital measures (equipment, buildings, vehicles, hardware and software, infrastructure, furnishings)

Eligible to apply

  • Public Institutions

Funding requirements

  • Municipal authorities in Germany
  • Municipal associations
  • Inter-municipal cooperations (e.g., city networks, city-suburban partnerships)
  • Compliance with the guidelines of the Smart City Charter
  • Overall urban spatial reference of the strategies
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Documents required for application

  1. Application for grant approval
  2. Identification according to the Money Laundering Act
  3. Cost and financing plan
  4. Municipal council resolution

Evaluation criteria

  • Degree of integration of the Smart City Charter
  • Sustainability and cross-sectoral approaches
  • Quality and feasibility of strategies and measures
  • Participation and exchange of experience

Description

The funding program of the Federal Ministry for Housing, Urban Development and Building, in cooperation with KfW Banking Group, supports public institutions nationwide in the development and implementation of integrated smart city strategies for sustainable digital modernization. Municipal model projects are funded in two phases: Phase A supports strategy development including initial investments over a period of 12 months, with a grant amount of up to €2.5 million (of which €1 million is for initial implementation measures). Phase B enables the realization of the developed goals and measures within up to four years with a funding amount of up to €15 million. The funding generally covers 65% of eligible costs, and up to 90% in cases of budgetary distress.

Eligible applicants are municipal authorities, municipal associations, as well as inter-municipal cooperations such as city networks or city-suburban partnerships. A prerequisite is a city-wide spatial reference of the smart city strategy, adherence to the guidelines of the Smart City Charter, and a council resolution for the planned measures. Eligible costs include personnel and material expenses for strategy and concept development, consulting and training services, as well as capital expenditures for hardware and software, infrastructure, and equipment. A project call takes place once annually marking the application period; however, currently no applications can be submitted. Selection is based on sustainability, cross-sector integration, feasibility, and active participation. In addition to financial support, municipalities benefit from continuous exchange of experience within the model projects.

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