INVITATION FOR APPLICATIONS Feed the Future Bangladesh Rice and Diversified Crops Activity (RDC) Diversified Crops Market Systems

Transcription

1 INVITATION FOR APPLICATIONS Feed the Future Bangladesh Rice and Diversified Crops Activity (RDC) Diversified Crops Market Systems PART A: INFORMATION PACK PART B: APPLICATION FORM & BUDGET TEMPLATE

2 Part A: Information Pack 2

3 1. About RDC Bangladesh Rice and Diversified Crops (RDC) Activity funded by the USAID to improves food security through facilitating systemic changes that increase rural incomes. It is a five years project from July 13, 2016 to July 12, The USD 24.5 million initiative targets 500,000 farmers from the FtF zone in southwestern Bangladesh. RDC catalyze market system changes that promote a diversified farm management approach focused on intensified production of rice and production of higher-value, nutrient-rich crops, improve food security and nutrition in the Khulna, Barisal, and southern Dhaka divisions of Bangladesh (FtF Zone). Diversified crops that RDC will initially target include: maize, oilseeds (mustard, sunflower, ground nuts and sesame) and pulses (lentils and mung bean). The objective of RDC: Improve Food Security through Systemic Changes that increase incomes Increase the intensification of rice and productivity of diversified crops Increase competitiveness and inclusiveness of rice based crop market systems The RDC activity has the following life of activity targets: 500,000 farmers in the FtF zone will have access to new and improved products, services, and/or market channels. 50% expansion of commercial outreach in the FtF zone of production and post-harvest related inputs and services. 50% expansion of commercial procurement by collaborating companies in the FtF zone. The target districts under this FtF zone are: Khulna division (Jessore, Jhenaidah, Magura, Narail, Bagerhat, Khulna, Satkhira, Chuadanga, Meherpur), Barisal division (Barisal, Bhola, Jhalokathi, Pirojpur, Barguna, Patuakhali) and Dhaka division (Faridpur, Gopalganj, Madaripur, Rajbari, Shariatpur). 2. Background Information Related to the Invitation for Application The RDC Activity is planning to work in the following agricultural sectors (select rotational crops) which fall under profitable, rice based cropping pattern in the FtF zone: Rice Maize Pulses (including lentil and mungbean) Oilseed (including mustard, sunflower, sesame and groundnut) In addition, RDC will focus on the following cross cutting sectors : Fertilizer Crop Protection Information Communication Technology (ICT) Financial services Mechanization As an initial focus, RDC plans to collaborate with private companies/ firms to address the challenges for the crops (Rice,Maize, Oilseeds, and Pulses,) and cross-cutting functions (Fertilizer,Crop Protection,Mechanization, ICT, and Digital Financing) as mentioned in the following table. The major challenges at farmers end for the crops and cross cutting functions are listed below: 3

4 Sectors Rice Maize Oilseeds Pulses Farm Production Challenges Farmers have limited availability of quality commercial rice inputs such as short duration and high yielding varieties, climate resilient varieties, pest and disease resistance varieties seeds, fertilizers (macro & micro), crop protection products (especially for insect, disease & weed control). Inadequate information and knowledge for farmers on the benefits of quality seeds, new varieties, modern cultivation practices (appropriate age of seedling, judicious use of fertilizer & pesticides) and post-harvest practices, and rice-based cropping system. Farmers lack of linkages with product buyers (small to large) and processing plants (small engleberg friction, semi-auto, and auto rice millers). Farmers lack of linkages with product buyers (small to large) and processing plants (small engleberg friction, semi-auto, and auto rice millers). Farmers have limited knowledge on improved cultivation practices (such as, usage of quality inputs-seed, fertilizers and pesticides) which result in low income Limited availability of quality inputs, such as- suitable short duration varieties, quality pesticides Farmers lack of awareness about profitability of maize; especially due to farmers limited information and access to markets Farmers have limited access to finance; But compared to other crops maize requires high investment, making maize cultivation more challenging than other crops Farmers lack of proper post-harvest skills and use of machineries result in low quality maize grains Limited availability of quality seed Poorly coordinated marketing and distribution systems for quality sunflower seed in the FtF zone Farmers lack of appropriate knowledge and skills to use inputs (seed, crop nutrition and crop protection products) properly for oilseeds production Farmers lack of knowledge and skills on post-harvest management Farmers lack of access to profitable output market channels limits incentives to upgrade production Farmers have limited awareness on the benefits of using quality inputs, especially seeds Farmers lack of knowledge on improved cultivation practices resulting in low production and income for farmers Farmers have limited access to quality inputs (especially seed) Farmers lack of proper post-harvest skills and machineries resulting in low quality grains Poor linkages between farmers and industrial/institutional buyers limit the incentives to upgrade production Unavailability of agro-machinery services and spare parts for farmers/users. Cross Cutting Function Fertilizer Mechanization Challenges at Farmers end Lack of awareness of the benefits of a balanced application of fertilizers Limited knowledge on judicious application of balanced fertilizers resulting in poor soil and plant health Limited availability of quality micronutrient fertilizers and organic fertilizers in the FtF zone Farmers lack of knowledge about the available new machineries for agriculture farming such as irrigation, cultivation and post-harvest machineries 4

5 Crop Protection ICT Digital Financing Farmers have limited access to knowledge about pest treatment, prevention, disease of rice and diversified crops. Farmers lack of knowledge of appropriate use of crop protection products for rice and diversified crops. Farmers lack of quality crop protection products are available within farmers proximity Limited availability of farmer friendly ICT tools and Channels Farmers lack of knowledge about ICT tools and Channels Limited access to finance for producers, and machinery/equipment owners. Farmers/receivers lack of awareness about loan procedures. 3. What RDC is Looking for Under the Invitation for Application (IFA) process, RDC is inviting companies/ firms who are interested to design new and innovative business models, targeting farmers of the FtF zone, with an objective to achieve improved commercial relationships among different market actors (e.g. companies, traders, agents, farmers). The business proposals must address at least one or multiple challenges that prevail in the sectors (i.e. maize, sunflower, pulses, rice,) or crosscutting functions as mentioned in the above table. Propose business models/concepts must satisfy and support one or more of the following: Establishment/ expansion/ improvement of distribution models (for input companies) and/ or procurement models (for output companies) to include more underserved market actors in the rural areas (e.g. women, youth) Improvement/expansion of distribution models and/ or procurement models into new and underserved geographic markets in the FtF zone Innovative business ideas that target and benefit underserved farmers in the FtF zone. Period of performance should not be more than one year. 4. What does RDC Offer RDC will provide both technical and financial support to execute the proposed and agreed upon business models/ideas: Financial support agreements, with RDC contribution ranging from US Dollar $5,000 to $25,000 or equivalent Bangladesh Taka. The final agreement will be negotiated with selected, qualified companies. This support must contribute to a significant investment that the companies will make Facilitation of fine tuning/improving the proposed business models or strategic plans Technical support as needed for successful implementation of the proposed models/ initiatives Facilitation of identifying or developing business linkages with other market actors RDC will also offer follow on grants to the successful potential grantees to scale up successful interventions. 5. RDC Fund cannot be Used for: Working capital (e.g. day to day operational costs, salaries of regular staff, rent of buildings/office space/storage houses, purchases) Direct payments/subsidies to producers/farmers Common fixed assets (e.g. computers, vehicles, tools, machineries, equipment) Common physical assets (e.g. buildings, warehouses, storage houses, chatals) Improving or expanding a company s procurement to government or donor programs 5

6 6. Eligibility Criteria for the Interested Companies Companies/firms that meet the following criteria are requested to send their applications: Have interest to expand or develop inclusive and sustainable business models to procure agricultural products from the FtF zone Have been a legally registered company for at least the past two (2) years For input companies: existing commercial sales to at least 1,000 small scale farmers (with land holdings less than five hectares) either directly or through their sales distribution networks For output or crop/grain procurement companies: existing commercial procurement activities with at least 300 farmers/ producers (farmers/producers with land holdings of less than 5 hectares) Have commercial interest and incentives to invest in the capacity development of producers and other market actors Be buying from and selling products of acceptable quality to end market consumers Make an investment of at least 50% of the total program budget** Is not involved in an activity prohibited by USAID and is not in default with any development project. Propose business models/concepts which satisfy and support one or more of the following will be given preference (i) new and innovative business models, (ii) expansion of successful business models into new and underserved geographic markets and (iii) expansion of the business models targeting underserved customers in the rural areas, such as youth and women Have legal documents (e.g. certificate of incorporation, trade license, Tax Identification Number, VAT registration number, Proof of bank account and/or any other legal document which might be deemed necessary as per the rule of the country and requirement of RDC) Note: Only "for profit" companies/ firms are eligible to apply who have legal registration. Program is not eligible for Non-Government Organizations (NGOs), Consulting Firms, or Associations. ** The Applicant need to meet under RDC market actor agreement the 1:1 leverage requirement in cash funds or In-Kind resource which can be measurable. The grantee is encouraged to provide more than the minimum leverage requirement depending on the level of facilitation intensity required. 7. Expected Results It is expected that participating companies/firms will commercially benefit from the proposed business model. It will lead to inclusive and sustainable businesses through which the companies will be able to provide innovative and improved solutions for the betterment of the farmers in the FtF zone. It is also expected that farmers will have improved knowledge and skills regarding production processes of their crops. The farmers are expected to benefit from the inclusive business models of the companies. It will lead to improved commercial relationships and trust among the companies/firms, farmers and other market actors that are involved in the crop value chains/ sectors. Depending on the success of the initial partnership, there will be opportunities for further investment to scaleup the successful models. 8. How the Grants are Awarded RDC uses the following process to award the grants: 6

7 Step 1: Once RDC receives the Applications along with the Budget from interested private companies/firms, RDC will evaluate the applications based on specific criteria and due dilligence Step 2: RDC will invite the qualified applicants to detailed planning workshops/ meetings to discuss the followings - i. Discussion on the business model and strategic planning exercise related to the proposed iniaitives ii. Discussion on how technical support from RDC can be provided Step 3: RDC will establish Market Actor Agreements (MAA) with selected (through evaluation) companies/firms detailing out the objectives, clearly defined responsibilities and deliverables Grant will be administered in accordance with the applicable donor regulations. The issuance of this Request for Application does not commit ACDI/VOCA to make an award to any prospective grantee responding to this solicitation. Prospective grantees will not be reimbursed for costs incurred in the preparation and submission of an application. ACDI/VOCA reserves the right to reject any and all applications, or to make an award without further discussion or negotiations. 9. What is the Process of Submitting Application to RDC This IFA is an amendment of RDC IFA dated in two daily national newspapers on 17th January 2017, 19th January 2017 on The Prothom Alo; and 19th January 2017 and 21st January 2017 on The Daily Ittefaq. This IFA also reflects the modification against the circulation of EOI on the daily Prothom Alo, dated December 8, If objectives change, it will be informed through further modifcations to the IFA. The applicant, who already submitted their proposal, does not need to submit the same proposal again. Applications must be submitted in accordance with the format prescribed (available in Part B of this document). This Invitation for Application (IFA) for new and innovative business models targeting the FtF zone will be accepted on a rolling basis, until such a time as the market accelerator program funds are no longer available. Interested applicants who meet the eligible criteria can submit proposal and budget to the info@acdivocardc.org or hard copy to RDC office House#37, Road#11,Block#H,Banani,Dhaka- 1213,Bangladesh. Please include the name, title, phone number, and of the lead contact person who will be involved with the application process. 7

8 10. Evaluation Applications will be evaluated and prioritized for RDC grants award process. Applications which represent best value solutions after evaluation in accordance with the category/factors itemized here will step forward for negotiation with RDC. The evaluation criteria below are presented by major category so that applicants will know which areas require emphasis in the preparation of Applications. Category Weight (%) Proposed Business Model (45) Understanding of the market scope 5 Business case/ incentives aligned 10 Outreach potential 10 Degree of Innovation 10 Alignment with Sector Strategy 10 Key Activities (15) Relevance of proposed activities 10 Feasibility of implementation 5 Fund (15) Justification of the proposed budget 5 Cost effectiveness 10 Organizational Capacity (5) Relevant work experience, capacity, network, Human resources 5 Cross Cutting (20) Gender Inclusion 10 Climate Change consideration 5 Nutrition focused 5 Total % is the "degree of sustainability" criteria which will be assessed after having discussions with applicants. Future (Degree of sustainability) (20) Continuity 10 Scale potential (Expansion) 10 Total 20 Grand Total Other Rules and Regulations One (1) company/firm may propose/ submit maximum of two (2) applications/ideas against this Invitation for Application (IFA) 8

9 Companies with diverse/separate Strategic Business Units (SBUs) such as Input Business Unit and Crop Procurement Unit are encouraged to submit applications jointly and propose more holistic, 360- degree business models Companies/firms are allowed to form consortium arrangements provided that they produce written document of their intention. In such cases, all the consortium partners need to fulfill the criteria mentioned in Section 6.0 Rice and Diversified Crops Activity reserves the rights to (i) invite additional companies to participate and/or (ii) exclude one or more companies/firms from the process and/or (iii) extend the deadline for submission and/or (iv) cancel the grants awards process Issuance of this Invitation for Application in no way constitutes a commitment by RDC Activity to execute any agreement or to pay any costs incurred by any applicant in submitting an application RDC Activity will fully respect the confidentiality of all companies involved in this process 9

10 Part B: Application Form and Budget Template 10

11 Application Form Title of the Proposed business model/ concept Name of the company/ firm Company/firm address Name Contact Person (on behalf of the company/ firm) Designation Contact number Proposed Duration of the project (should be within 6 12 months) Proposed total budget (in BDT) 1. Organizational Profile [maximum ½ page] [Please write a brief introduction of the organization. The introduction must include information on its establishment, offices (headquarter and field offices), no. of permanent employees and core business of the organization such as crops which are procured, distribution models, etc.] 2. Proposed Business Model [maximum 2.5 page] 2.1. Market Opportunities [Explain the market scopes for the proposed crops in terms of business opportunities, growing consumer demand, prospects, etc.] 2.2. Challenges [Explain the challenges for the company / firm (the applicant) in the proposed crops] 2.3. Proposed Business Model 11

12 [Describe the proposed business model/ concept that will help the company/ firm to overcome the challenges mentioned in Section 2.2] 2.4. Relationships: [Describe how the proposed business model will lead to improved relationships among different market players (e.g. farmers, traders, arotdars, the company)] 2.5. Target Group and Geographic Coverage - How many farmers can potentially be reached by the proposed business model? - Who are the other actors (e.g.: dealers, input retailers, distributors, traders, arotdars, etc.) that might benefit from the model? - How many female farmers or other female market actors will be reached (if any)? - Mention the target geographic areas (district and upazilla) 3. Key Activities and Proposed Timeline [maximum 1 page] - Mention the major activities which need to be undertaken to implement the proposed business model - Propose a timeline to carry out the major activities 4. Future Plans [maximum ½ page] Beyond the project period and without the project fund, what are the plans - to continue the proposed business model in the future, and - to expand the proposed business model in other geographical regions or other product lines of the company/ firm 5. Fund Requirement and Rationale [maximum ½ page] - What is the proposed total Budget? - What amount of the total budget (in BDT or percentage) is expected from RDC? - Why does the applicant need external funding (Please explain how the fund will help the company to implement the business model)? 12

13 6. Experience with Other Development Projects or Government Projects - Past experience of working with other development partner(s) in the last two years (if any) Sl. Name of the Project Name of the Development Organization (i.e. donors, donor funded projects, development organizations or others) Current status (on-going or closed) Project Budget % budget contribution of the company 1 2 Legal Documents Sl. Documents name Yes/No Expiration date (if applicable) Remarks 1 Certificate of incorporation 2 Trade license, 3 Tax Certificate 4 VAT registration 5 Bank account of organization 6 Other legal document (Please specify document name) 13

14 Budget Template Instructions: Each company/ applicant will prepare a budget using the format below. If possible (though not mandatory) the applicant should prepare and send this budget as an additional file in Microsoft Excel format. Applicant must contribute to at least 50% of the program budget. Operation and administrative cost are discouraged to include in the budget (e.g. staff salary, rent etc.) No 1 Activity/ Cost head Unit (e.g. month/ day/ session) Number (#) of Units Cost per Unit (in BDT) Total cost (in BDT) Company Contribution (in BDT) RDC Contribution (in BDT) Breakdown of cost per Unit Total Budget Contribution to the budget (in %) Note: If any applicant wants to add additional information relevant to the budget or any line item of the budget, please add columns to the right of the above template. Units are description of the activity, for example- Retailers Trainings, Demonstration Plots, Meetings, Participants Quantity = Numerical count of the Unit 14