TO PROMOTE THE DEVELOPMENT OF MUSHROOM INDUSTRY IN AMHARA REGION, BAHIR DAR

Transcription

1 TO PROMOTE THE DEVELOPMENT OF MUSHROOM INDUSTRY IN AMHARA REGION, BAHIR DAR

2 TRIPARTITE MOU AMONG AMHARA DEVELOPMENT ASSOCIATION, SMALL & MICRO TRADE & INDUSTRY OFFICE OF BAHIR DAR, AND KINGS MUSHROOM PRODUCTION AND MARKETING ENTERPRISE TO PROMOTE THE DEVELOPMENT OF MUSHROOM INDUSTRY IN AMHARA REGION, BAHIR DAR Page 2 1. PARTIES The parties to this Memorandum of Understanding, hereinafter referred to as the MOU, are the Amhara Development Association (ADA), hereinafter referred to as ADA, Small and Micro-trade and Industry Office of Bahir Dar, hereinafter referred to as SMTIO, and Kings Mushroom Production and Marketing Enterprise, hereinafter referred to as Kings Mushroom. 2. PURPOSE AND SCOPE The purpose of this MOU is to establish funding and service arrangement among the ADA, SMTIO, and Kings Mushroom and together, the Parties to promote the implementation of mushroom production, utilization, and marketing technology among the unemployed youth and households of Bahir Dar. This MOU supports a variety of activities including financial support to enable Kings Mushroom build its own training hall at its farm site and procurement of furniture such as chairs and tables so that Kings Mushroom is capable of implementing its training program on mushroom production, postharvest handling, utilization, and marketing, and pave the way to scale up mushroom production technology in the Amhara Region. ADA, SMTIO and Kings Mushroom will also coordinate the construction of the training hall, procurement of furniture, and trainings of trainees, and nomination of trainees, facilitation of working space and financial credits for trainees in Bahir Dar. Moreover, they involve in measuring and documenting of the progress of the collaboration during its implementation. This MOU represents a non-binding expression of intent among the Parties to work together to promote mushroom production, utilization, and marketing in Bahir Dar. WHEREAS ADA, SMTIO and Kings Mushroom are desirous to enter into a MOU among them, setting out the terms, conditions, and services to be provided by such collaboration. In particular this MOU is intended to: Introduce the culture of mushroom production and consumption via small scale mushroom producers in Amhara Region; Increase access to mushroom production technology in Amhara Region; and

3 Enable small scale mushroom producers contribute their part in the fight against poverty thereby diversifying/improving their livelihood income. 3. BACKGROUND Presently, mushroom farming is being practiced in more than 100 countries and its annual global production reaches 7 million metric tons. The world market for the mushroom industry in 2005 was valued at over $45 billion. However, in Ethiopia due to a number of constraints, the country has not benefited from mushrooms as the rest of the world do. Page KINGS MUSHROOM Kings Mushroom was established in 2OO8 and since October 2009 it is conducting mushroom production and marketing activities at its farm in Zenzelima Kebele, Bahir Dar. The enterprise is a pioneer organization in mushroom production and marketing in the Amhara Region. The vision of the enterprise is to see mushrooms being produced, marketed, and consumed as fruits and vegetables at each household. The mission of the enterprise is scaling up of mushroom production, marketing, and utilization technologies into the wider population or beyond the project area in both time and space. In order to achieve its vision and mission one of the strategies of the organization is introducing mushroom production and utilization methods through continuous training, learning, research, and innovation processes. Presently, the enterprise has developed a training package on Mushroom production, postharvest handling, utilization, and marketing. The package targets training of 600 youths coming from Bahir Dar, Gondar, Dessie, and Debre Markos in the year 2010/2011. However, the project is in dearth of finance to build its own training hall (40 youth capacity) and procure the necessary furniture including chairs and tables. Thus, the enterprise is seeking funding from ADA that can be used for the construction of the training hall and procurement of furniture to furnish the hall ADA The ADA s program mission is to enhance development activities in the Amhara Region and supporting such innovative projects to scale up their practices and technologies.

4 3.3. SMTIO The mission and objectives of SMTIO is enhancing small and micro trade activities, and supporting the initiation and implementation of such industries in Bahir Dar COLLABORATIVE OBJECTIVES AND ACKNOWLEDGEMENTS Page 4 ADA, SMTIO and Kings Mushroom recognize, mushroom cultivation has a variety of advantages to the people Amhara Region such as, enabling the use of agricultural and agro-processing wastes, it does not require a large area of land or it can be grown in non arable land, it is high yielder per unit area of land viz a viz about 20,000 quintal per ha per annum, it is short season crop as compared to cereals, and can be locally produced if adequate training is offered to interested producers. Thus, mushroom production creates job opportunity for marginal & unemployed youth of the society, increases food production and diversification, it reduces malnutrition, plays a role in the improvement of the GDP of the country, serve as an import substitution item and a source of foreign currency in the long term bases. 4. RESPONSIBILITIES UNDER THIS MOU 4.1. ADA HEREBY AGREES TO PROVIDE THE FOLLOWING RESOURCES IN RESPECT OF THE COLLABORATION: I. Provide financial fund of Birr 80, (eighty thousand), out of which Birr 72, (seventy two thousand) will be invested for the construction of training hall (6mx8m=48 m 2 ) at Kings Mushroom farm, in Zenzelima, Bahir Dar, and Birr 8, (eight thousand) shall be used to procure furniture for training hall (including chairs and tables) (for detail see Annex 1). And payment arrangement will be as follows: o Birr 30, will be released 3 days after the MOU is signed; o Birr 30, will be released 10 days after the first payment is released; o Birr 20, will be released 10 days after the second payment is released. II. Cover the cost of inputs, transportation, stationery & printing, lunch & entertainment expenses for 90 trainees for 5 days which worth about Birr 41, and Items of lunch, entertainment and inputs of practical training will be supplied by Kings Mushroom but the associated costs will be covered by ADA (list and cost items of the training are attached herewith Annex 1 as separate item). And the arrangement of payment will be as follows:

5 a. Birr 13, will be released 3 days before the first training has begun; b. Birr 13, will be released 3 days before the second training has begun; and c. Birr 13, will be released 3 days before the third training has begun (for details of the activity plan see Annex 3). Page SMTIO HEREBY AGREES TO PROVIDE THE FOLLOWING SERVICES IN RESPECT OF THE COLLABORATION: Nominate and identify 90 candidate trainees who will be trained on 3 consecutive batches on mushroom production, utilization, and marketing; o Out of 90 trainees, 70% of them will come from unemployed group of the society whereas 30% of them will be elected from households; o Gender wise 75% of trainees will be women & 25% will be men. Supporting trained prospective mushroom producers by: Providing training on Business Plan Preparation and Implementation ; Helping trainees to get organized themselves and legalizing their organization; Helping them to acquire working land/space; and Facilitating financial credits needed for the implementation of their projects KINGS MUSHROOM HEREBY AGREES TO PROVIDE THE FOLLOWING SERVICES IN RESPECT OF THE COLLABORATION: Provide training and post-training support worth about Birr 68, (for details please see Annex 2) broken downs as follows: I. Prepare training manual, which is worth about Birr 10,500.00; II. Train 90 beneficiaries on 3 batches (30/batch) on mushroom production, postharvest handling, utilization, & marketing for 5 days free of charge, which is worth about Birr 25,200.00; III. Supply training facilities: laptop, training hall, etc for training period; and IV. Provide post-training technical support for trainees for 3 months from the date after each batch has been completed the training, which is worth about Birr 32,400.00, when trainees: a. Construct their own mushroom growing houses; b. Procure mushroom growing house furniture; c. Conduct trial mushroom production; and d. Conduct packaging and marketing of their trial production.

6 5. FUNDING This MOU does not include the reimbursement of funds among the parties and the physical structures built during collaboration will remain as the property of Kings Mushroom. 6. RECORD RETENTION All records must be retained for one year from fiscal closure. This requirement applies to fiscal records, reports and client information. Supporting documentation may be kept at all party level, but must be available for review for one year from the date of fund claim submittal. Any costs that cannot be substantiated by source documents will be disallowed as charges to the Kings Mushroom. Page 6 7. CONTACT DETAILS Amhara Development Association (ADA) Bahir Dar, Ethiopia Telephone: , or Cell phone: Fax: ada.hq@ethionet.et, or tensiyenalem@yahoo.com Small and Micro-trade and Industry Office of Bahir Dar Bahir Dar, Ethiopia Telephone: or , Cell phone: teferatadiyos@yahoo.com, or abawa59@yahoo.com, or asatamiru@gmail.com Kings Mushroom Production and Marketing Enterprise P. O. Box: 341, Bahir Dar, Ethiopia Cell phone: kingsmushroom@gmail.com Website: 8. TIME PERIOD This MOU covers the time period from October, 31, 2010 to October, 31, Kings Mushroom will request ADA for the release of funds as outlined in Section 4.1 from I to II. Payment is expected within 1 to 3 days of receipt of the request. 9. TERMS AND CONDITIONS This MOU shall be effective upon the signature of ADA, SMTIO and Kings Mushroom authorized officials. It shall be in force from to October

7 31, The undersigned hereby agree to this MOU and thereby, authorize its execution (for details of the activity plan see Annex 3). Agreeing Parties Signature Date Stamp 1. Amhara Development Association Page 7 2. Small & Micro-trade & Industry Office of Bahir Dar 3. Kiflemariam Yehuala (G/M)

8 Annex 1 Cost breakdown for funds and resources offered by ADA Table 1 Cost estimation for civil works and structures for training hall construction Description Specification Purpose Unit Quantity Unit Cost Total Cost Training room Floor cement, Wall made of hollow blocks, vent widows from mesh wire, Room for training m , , door wood, ceiling made of chip wood Total 72, Page 8 Table 2 Estimated costs to furnish the training hall with chairs and tables Description Unit Quantity Unit cost Total cost Chairs Pcs , Table White board Total 8, Table 3 Costs for inputs of training, stationery & printing, entertainment, lunch, and transportation Description Unit Qunt. Unit cost Total unit cost Total cost (3 rounds) 1 Inputs of training 1.1 Spawn (Oyster mushroom) Bottle , Spawn (Shiitake mushroom) Bottle , Polyethylene bag kg Wheat straw qtl Sawdust qtl Sub total 2, , Stationery and Printing 2.1 Note books Pieces , Blue/Black ink pen Flip chart Pack , Marker Pack Printing Pages , , Binding Manual CD Pack Sub total 3, , Lunch, entertainment & 3 transport

9 3.1 Lunch Meal , , Hot drinks Cups , Mineral water Bottle , , Kukis kg , Transportation Round trip , , Sub total 7, , Total 13, , Page 9 Table 4 Summery of costs covered by ADA S.No, Description Total Cost 1 Construction of training hall 72, Training hall furniture 8, Inputs of training 7, Stationery and printing 10, Entertainment, lunch, transport 22, Total 121,236.50

10 Annex 2 Kings Mushroom Services and Resources in terms of Value in Birr Table 1 One time training manual (theoretical and practical) preparation costs Sir. No, Description Unit Quantity Unit Cost Total Cost 1 Manual preparation 1.1 Manual for theoretical training Pages , Manual for practical training Pages , Total 10, Page 10 Table 2 Cost estimation of the training in 3 batches for 90 trainees Sir. No, Description Unit Quantity Unit Cost Total Unit Cost Total Cost (3 Rounds) 1 Manual preparation 1.1 Manual for theoretical training Pages Manual for practical training Pages Sub total Training 2.1 Theoretical training and exercise Hours , , Practical training Hours , , Sub total 8, , Table 3 Cost estimation for post training follow up and technical support Description of Technical Supports Number of trainees Unit cost Total cost Construction of spawn run and mushroom grow 1 houses , Procurement of grow house furniture and equipment , Production of mushrooms , Packaging and marketing of mushrooms , Total , Table 4 Summery of estimated costs for services offered by Kings Mushroom S.No, Description Total Cost 1 Manual preparation 10, Training provision 25, Post training technical support 32, Total 68,100.00

11 Annex 3. Activity Plan Work plan for the Tripartite Agreement on Training of Mushroom Production and Marketing for households and unemployed youth of Bahir Dar Activities Signing the MOU Transfer of fund from ADA to Kings Mushroom Procurement of building raw materials Construction of training hall Procurement of hall furniture Nomination of 1 st, 2 nd, and 3 rd round candidate trainees Training of first round trainees Provision of post-training technical support for the 1 st round trainees Training of second round trainees Time 1 day 1 week 1 week 4 weeks 4 weeks 3 weeks 5 days 3 months 5 days Page 11 Provision of post-training technical support for the 2 nd round trainees 3 months Training of third round trainees 5 days Provision of post-training technical support for the 3 rd round trainees 3 months Completion of the MOU time period Assuming everything will go smoothly and as scheduled, the collaboration work discussed in the tripartite MOU will take 7 months but assuming certain uncertainties it will be completed within 12 months as tabled in the following Gantt chart.

12 Gantt chart No, Activities 1 Signing the MOU Transfer of fund from ADA to Kings' 2 Mushroom 3 Procurement of building raw materials 4 Construction of training hall 5 Procurement of hall furniture Nomination of first, second, & third 6 round candidate trainees 7 Training of first round trainees Provision of post-training technical 8 support for the first round trainees 9 Training of second round trainees Provision of post-training technical 10 support for the second round trainees 11 Training of third round trainees Provision of post-training technical 12 support for the third round trainees 13 Completion of the MOU period Year 2010 Year 2011 Nov. Dec. Jan. Feb. Mar. Apr. May June Nov. Page 12