Private sector development in Ukraine in 2026 and 2027: Responses to Request for Clarifications

Q: Is there a deadline for submitting the applications? 

A: Yes. This call uses a two-stage application process with the following deadlines:  

Stage 1 – Concept Note:  
The deadline for submitting the concept note is 15 June 2026 at 23:59.  

Stage 2 – Full Application:  
The deadline for submitting the full application (for applicants invited after Stage 1) is 30 August 2026 at 23:59.  

This is a competitive call, and applications submitted after the relevant deadline will be rejected. All applications must be submitted through Norad’s Grants Portal.  

Q: Who can apply? 

A: Any commercial organisations may apply. The applicant must be a legal commercial company. Please note that neither investment, consulting companies, nor equipment suppliers, will not be prioritised in this Call.   

Q: What does the application process look like? 

A: Applicants will first be asked to submit a short concept (four pages, PDF format, uploaded to Norad’s grants portal) note and confirm that they meet the grants scheme’s minimum criteria to qualify for support. Successful applicants will then subsequently be invited to submit full applications, and fully document the business case. No applicant is entitled to support until the applicant successfully makes it through both stage 1 (concept note) and stage 2 (full application). Unsuccessful applicants will be notified as soon as possible after the submission deadline.   

Q: The call for grant states that a call for proposals under the grant scheme for Ukraine and neighbouring countries - can we apply for support of the business development in other countries?  

A: No. The purpose of the call is to foster investment-ready projects that could underpin economic activity in Ukraine only. While some supported activities, such as consultancy, may occur outside of Ukraine, the main business project and future business activity must take place within Ukraine's territory (except the occupied territories).   

Q: Is there minimum grant amount for each project?  

A: Applications for grant amounts under NOK 5,000,000 will not be given priority. The applicant cannot expect to receive a grant that exceeds twenty per cent of the applicant’s annual documented turnover.  

Q: Has Norad allocated a specific amount for this call for proposals or decided in advance on how many projects to support? 

A: No, this will depend on the quality of the applications.   

Q: Can we meet to discuss my project? 

A: No. Norad has limited capacity to meet potential applicants to provide guidance in the application process. Furthermore, we cannot comment on draft applications or discuss the substance of a project in a manner that would distort the competition between applicants. We do our best to answer concrete questions by email and we aim to publish our answers to frequently asked questions on this website.   

Q: It is stated in the call that neitherholding,investment, consulting companies, nor equipment suppliers, will be prioritized for support. Can companies that are eligible for support apply in consortium with partners that are not eligible (like consulting companies)?  

A: Yes, you can identify several partners as part of the application, though, it should be one main applicant who will be responsible for managing the grant and reporting. The main applicant must meet the minimum requirements to be eligible.  

 Q: We are the daughter company of a bigger group – can we document accounting records from our main company when applying for the call?  

A: The applicant must document its own financial capacity in the application. This means that the subsidiary (daughter company) applying under the call must submit its own financial statements and other required financial documentation through the Grants Portal.  

If relevant for demonstrating overall financial strength and capacity to implement the project and the main investment, it may also be useful to attach group- or parent-company financial information (for example consolidated accounts) as supplementary documentation. This will not replace the requirement for the applicant company to document its own financial situation, but can help substantiate the financial robustness behind the project. 

 
Q: Please comment in more detail what does it mean “No funding may be provided for CAPEX investment beyond 20 % of the total cost of a pilot project” . For example, can companies particularly interested in expansion of production or modernization of production lines seek grant funding to procure machinery and equipment with total value of, for example, 70% of the total project cost?   

A: The purpose of this call is to advance investment‑ready projects and prepare, as much as possible, the ground for making an informed investment decision on whether to proceed with larger, follow‑on investments.  

As such, the call is not intended to finance full‑scale procurement of equipment beyond what is needed for pilot production and other preparatory activities that inform the investment decision.  

Within this framework, capital expenditures (CAPEX) may be supported, but only to a limited extent:  

Only up to 20% of the Norad grant may be used to cover CAPEX.  

CAPEX can be supported only when it is clearly required for increased value creation – understood here as increased investments, jobs or revenues – and when it is directly linked to making the project investment‑ready.  

Overall, the grant may cover up to 50% of incurred project costs (and up to 80% for specific ancillary costs, such as basic local public infrastructure, as specified in the call).  

For further detail, including examples of eligible activities, see section 4A – Project activities that may be supported in the call text. 

Q: “The applicant must substantiate that the project is “catalytic” e. that the funding will trigger investment decisions”. If grant realization does not trigger further investment because the whole project will be realized within a grant financing. I mean that a project is project itself and is not a part of a bigger project or is not designed to make an investment decision (it is already made). Certainly, this project will lead to new job creation, extension of an existing activity, improvement in productivity or efficiency, etc. Does it mean that such a project will be rejected?  

A: The purpose of this call is to advance investment-ready projects, preparing them as much as possible to enable an informed investment decision on whether to proceed with further investments. Therefore, if the primary objective of a project is, for instance, to upgrade equipment at a factory, this project would not meet the main criteria for support, as it does not trigger any new investments.    

Please refer to section 4A for examples of project activities that may be supported. 

Q: Is it correct that the project realization should happen within 12 months?  

A: As stated in the call (section 5), we will prioritize projects that do not exceed two years.   

Q: Please comment in more details and with an example what does it meant “Framework conditions for private sector are improved”? 

A: This is referred to as one of the performance criteria for the call and meant to serve as a higher-level goal of the grant contribution. Improved framework conditions may refer to improved access to financial and human capital, technology and/or markets.  

Q: Could you elaborate on the possibility of grant funds being disbursed in advance?  

A: As stated in the call, the grant may:  

Cover up to 50% of incurred project costs in total  

Cover up to 80% of incurred costs for certain ancillary activities  

Disbursements will be made in instalments, and can be adapted to the project’s cash-flow needs:  

Norad may disburse up to 50% of the grant need for the first six months upon signing.  

The remaining grant will be disbursed in semi-annual or more frequent instalments, based on reporting, progress and documented incurred costs, and structured so that the grant does not exceed 50% of incurred project costs at any given time.  

Illustrative example:  
An applicant submits a project with a total cost of NOK 10 million and applies for NOK 5 million in grant support (50% grant share). The financing needs for the next six months are estimated at NOK 2 million in eligible project costs. In such a case, Norad may disburse up to 50% of the grant need for that six‑month period as an advance, with subsequent instalments linked to progress, reporting and updated cost documentation. 

Q: Can an enterprise apply for a grant to install new generation capacity, like solar panels or battery storage, to enhance energy self-sufficiency?  

A: Enterprises aiming to install new generation capacity, such as solar panels or battery storage, to enhance energy self-sufficiency may not find this grant suitable if the primary objective is to fund these installations directly. The grant is intended to support projects that advance investment readiness and stimulate further investments, rather than funding the installation of energy infrastructure to maintain ongoing operations. Projects that align with the grant’s broader objectives, such as those that prepare the enterprise for future investments or create a broader economic impact, are more likely to be considered for funding.   

Q: According to the FAQs, organizations that already have an ongoing agreement with Norad under this scheme or for similar objectives, either directly or through an umbrella organization, will not be prioritized. Our company operates through several legally independent entities. Currently, one entity has an ongoing Norad grant. If another legally independent entity submits an application with different objectives and activities, would it still be considered “not prioritized”, or is prioritization assessed strictly at the level of the applicant legal entity? 

A: Prioritisation is assessed at the level of the applicant legal entity submitting the application. This means that if one legal entity within the group already holds a current Norad grant, this does not automatically affect the eligibility or prioritisation of a separate, legally independent DTEK entity, provided that: 

the applicant is a distinct legal entity, and  

the application concerns different objectives and activities, and  

there is no substantive overlap with existing funded activities.  

However, Norad will consider overall portfolio coherence and the risk of duplication or concentration of funding when assessing applications. 

Q: Is it allowed to submit several applications from different legally independent entities within the same, provided that each application has distinct objectives, activities, and budgets? 
 
A: Yes, it is in principle possible for different legally independent entities within the same group to submit separate applications under the same call.

This is subject to the following conditions: 
- each application must be submitted by a distinct legal entity  

- each proposal must have clearly differentiated objectives, activities, and budgets  

- there must be no overlap or duplication between the projects  

- each application will be assessed independently against the criteria of the call 

Norad may, however, consider group-level exposure and overall portfolio balance in its final funding decisions. 

Q: If multiple applications from different entities in a group are permitted, should each legal entity register separately in the grant portal, or is it possible to submit applications for different group entities under one organizational profile? 
 
A: Each legal entity applying for funding must register separately in the grant portal. 

Applications must be submitted under the profile of the specific legal entity that will be responsible for implementation and reporting. 

It is not possible to submit applications for different legal entities under a single shared organisational profile.

Q: Is there a ceiling on the grant amount per project under this call?    
 
A: There is no formal fixed ceiling per project under this call.

However, Norad has an indicative total allocation of NOK 50 million for approximately three to five projects, which in practice sets an implicit framework and naturally limits the expected size of individual grants. 

Q: Questions on eligible projects - energy sector. 

Could you please provide a simple example of projects that would be considered eligible under the energy sector within this call? 

For example, would the following type of project be considered eligible: 

A project where the main activity is the procurement and installation of a new, modern pilot substation based on a technology that has not yet been implemented in the Ukrainian power grid? The objective of the project would be to strengthen the energy system and to test an innovative solution in real operating conditions, with the potential for replication and scaling across the grid if the pilot is successful. 

Or a project aimed at the modernization of an existing substation (s) through the introduction of new, innovative systems and technologies (e.g. advanced automation, digital control, smart grid solutions), which would improve grid reliability, resilience, and efficiency while serving as a demonstrator for further rollout across the network.  
 
A: The call focuses on investment-ready projects, including feasibility studies, pilot activities, and market studies. It also allows limited CAPEX, with a maximum of 20% of the grant allocated to CAPEX. 

Both examples could in principle be eligible: 

Pilot substation with new technology: Eligible if it functions as a demonstrator or pilot, supports testing under real conditions, and generates learning for potential scale-up or replication.  

Modernisation of existing substations: Eligible if it introduces innovative solutions (e.g. automation, digital control, smart grid technologies) and clearly supports improved performance and future scaling.

In both cases, eligibility depends on the project’s contribution to investment readiness, innovation, and scalability, rather than being primarily infrastructure investment.

Q: The Call documentation states that "neither investment, consulting companies, nor equipment suppliers are eligible for support." Our current registered name includes the word "Invest," and we are currently renaming to Novy AG to reflect our operative nature. We are an operative real estate developer — we plan, finance, build, and operate physical assets in Ukraine — not a financial intermediary or asset management vehicle. 
 
Does the exclusion of "investment companies" apply to operative real estate development companies of this type, or is it targeted at financial intermediaries, investment funds, and asset managers? And will the completion of our renaming to Novy AG prior to the Concept Note submission date be sufficient to address any naming-related ambiguity?

A: Please note that the Call states that “neither investment, consulting companies, nor equipment suppliers will be prioritized for support under this call for proposals” (paragraph 3A). However, these actors are not excluded automatically. 

As your organisation does not fall into any of these categories, this is not expected to present an issue. A change of company name will be sufficient from our side. 

Q: The 2025 FAQ stated that "the applicant cannot expect to receive a grant that exceeds twenty per cent of the applicant's annual documented turnover." The 2026 Call has removed the previous minimum turnover requirement of NOK 25 million, which we understand opens the programme to pre-revenue companies such as ours. 
 
We would like to confirm: does the 20% of annual turnover ceiling still apply under the 2026 Call? If so, how is it applied to pre-revenue applicants — for example, by reference to market capitalisation or committed equity, as was the alternative mechanism in 2025? 
 
A: The 20% annual turnover ceiling still applies (paragraph 4). For applicants with audited turnover, it is applied in the standard way based on the latest approved accounts. 

For pre-revenue applicants, an alternative assessment is used, typically based on committed equity, parent company financials, or other verifiable funding capacity indicators (as in 2025). Market capitalisation may be considered where relevant and robust.

Q: The Call identifies "reconstruction of critical infrastructure" as a priority sector. Our project targets serviced appartements for internally displaced persons (IDPs) and urban professionals returning to Kyiv. Classic definitions of critical infrastructure focus on energy, water, transport, and telecoms; housing is sometimes classified as social infrastructure. 
 
Does IDP-oriented serviced appartements development qualify as "reconstruction of critical infrastructure" under the 2026 Call, or would it need to be framed differently (e.g., as private sector development contributing to reconstruction) to fall within the eligible scope? 
 
A: While housing can be considered part of broader recovery and reconstruction efforts, it is not typically classified as critical infrastructure under this call. 

A project focused on serviced apartments for IDPs and returning professionals would therefore not normally be eligible under the “critical infrastructure reconstruction” priority as such. 

However, the concept may still be eligible if it is clearly framed within the call’s overall objectives as: 

a private sector-driven reconstruction investment, and/or 

demonstrably catalytic in mobilising private capital and supporting economic activity 

In short, eligibility would depend less on the infrastructure label and more on whether the project clearly fits the call’s core purpose of investment-ready, catalytic private sector development contributing to Ukraine’s economic recovery. 

Q: Would it be eligible to submit a project focused on the development of a municipal industrial park, particularly aimed at strengthening its energy resilience to support the growth and sustainability of resident businesses?  
 
A: Projects supporting the development of industrial zones or industrial parks may be eligible under the call, provided they are clearly investment-ready, commercially anchored, and contribute to private sector development and job creation. 

A project focused on strengthening the energy resilience of a municipal industrial park could be eligible if it: 

is linked to concrete private sector investment and business activity within the park,  

has a clear business case and identified investors/tenants, and  

demonstrates how Norad’s support is catalytic in enabling further investment.  

Purely public infrastructure development without a clear private investment component would not be prioritised. 

In addition, please note that CAPEX elements overall are capped at a maximum of 20% of the total grant amount, and must be clearly justified as part of a broader investment-readiness or enabling framework. 

Q: As we understand, the grant may cover up to 50% of the total project cost. Could you kindly confirm whether, for example, a project with a total budget of EUR 6,000,000 could receive grant funding of up to EUR 3,000,000?  
 
A: Yes, your understanding is correct. The grant may cover up to 50% of total eligible project costs. In your example, a project with a total budget of EUR 6,000,000 could therefore receive up to EUR 3,000,000 in grant funding, provided all eligibility and assessment criteria are met.  

Q: The guidelines mention that “ancillary costs for basic local, public infrastructure and investments required for the realisation of the main project” may be covered up to 80%. 
We would appreciate further clarification on what types of investments fall under this category. Specifically:  

Would upgrades such as replacement of filtration systems at water treatment facilities qualify?  

Could rehabilitation of municipal infrastructure (e.g., bridges or utility networks) be considered?  

In the case where an industrial park is municipally owned, could investments in its infrastructure be treated as public infrastructure within this provision?  
 
A: This provision is strictly limited in scope and must be interpreted narrowly. It applies only to clearly ancillary, project-specific infrastructure investments that are directly and demonstrably required to enable the implementation of a private investment project. 

To be eligible, such costs must meet all of the following conditions: 

they are not stand-alone infrastructure investments,  

they are directly necessary for the functioning of the main investment, and  

they are clearly linked to a defined private sector investment decision. 

Q: The requirementstating that applicants should “have considerable ownership and involvement in the implementation of the main project” and that priority is given to those holding at least 25% equity in the planned investment — 
we would appreciate clarification on this point. 
 
Does this refer to:  

ownership share in the project company implementing the investment, or  

ownership in the underlying business or production assets created through the project?  

A: The requirement refers to a substantial ownership and involvement in the implementation of the main investment project itself, not ownership of the physical assets created, and not strictly limited to corporate shareholding in a specific project company. 

In practice, Norad will interpret this as the applicant having a meaningful equity stake or comparable direct financial and governance involvement in the main investment project being financed, sufficient to demonstrate: 

real exposure to project risk, and  

active participation in decision-making and implementation.