The Small Grants Programme (SGP) is an activity under the AWARE component and is targeted at the immediate grassroots in the project areas. It aims to provide support for village-level initiatives that showcase examples of hands-on and practical village self-help projects - projects that reduce environmental pollution while at the same time contribute to rising living standards. Preference is given to projects that can demonstrate positive impacts on biodiversity and water pollution and that involve cross-border partners. Typical grants are less than $5,000 and involve substantial in kind contributions from applicants.

Proposals are submitted in local languages or in English and a local selection committee ranks proposals and recommends funding to the UNOPS delegate (the CTA). The whole process from public notification to submission and selection, implementation and evaluation follows the Regional SGP Guidelines that were developed and proposed by the PCU and approved by all countries in early 2001

The SGP is targeted at local villages and local communities in the immediate proximity to the project area.

Two tranches of the SGP were funded under the TumenNET initiative. A total of 29 community projects were funded under tranche I in the four participating countries during 2001 (DPRK joined only in 2002).

An internal evaluation of tranche I in December 2002 found the program to be basically successful but recommended some changes to improve its impact and sustainability. The evaluation highlighted that 5,000 people had directly or indirectly benefited from project activities.

Recommendations were incorporated into tranche II that was launched in spring 2002. A combined 37 projects were funded in the five countries. For the first time, a regional sub-program was trialed that aimed to increase awareness of cross-border environmental issues and stimulate cross border exchange of experiences among neighbouring communities.