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Government of Nepal Ministry of Agriculture Development

Project for Agriculture Commercialization and Trade


[IDA Credit 4603-NP and IDA Grant H486-NP]

Instructions for Field Verification, Full Project Proposal Preparation and Peer Reviewers (Third Call)

Project for Agriculture Commercialization and Trade Maharajgunj, Kathmandu, Nepal 24 November 20121

Approved by National Project Steering Committee on 22 November 2012

TABLE OF CONTENTS 1. Introduction .................................................................................................................... 1 1.1 1.2 Background............................................................................................................. 1 Introduction to PACT............................................................................................... 1 PACT's Development Objective ....................................................................... 1 Project Location ............................................................................................... 2 Project Components ........................................................................................ 3

1.2.1 1.2.2 1.2.3 1.3 1.4 2. 3. 4.

Competitive Matching Grant.................................................................................... 5 Organization of the Guidelines ................................................................................ 6

Field Verification ............................................................................................................ 7 Full Project Proposal Development and Submission ................................................... 10 Evaluation of the Full Proposal..................................................................................... 16

Annex 1: Field Verification format........................................................................................ 20 Annex 2: Letter of Invitation................................................................................................. 29 Annex 3: Field Verification Result........................................................................................ 31 Annex 4: Standard Format for Full Project Proposal ........................................................... 32 (Third Call) CATEGORY 1 ................................................................................................ 32 Annex 5: Standard Format for Full Project Proposal ........................................................... 46 (Third Call) CATEGORY 2 ................................................................................................ 46 Annex 6: Norms and Criteria for PACT's Matching Grant Assistance by Grant Category .... 66

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ABBREVIATIONS ABD CMG CoP DADO DDC DFTQC DLS DLSO DOA DOC DOLS ECoP FNCCI FO FPP FV GO GON GA GR GRO ICB M and E MIS MoAD MOU NGO PMT PCN NPSC PACT PD PIM RTSG SPAC TIM Agribusiness Development Competitive Matching Grant Code of Practice District Agricultural Development Office District Development Committee Department of Food Technology and Quality Control Department of Livestock Services District Livestock Services Office Department of Agriculture Department of Co-operatives Department of Livestock Service Environment Code of Practice Federation of Nepalese Chamber of Commerce and Industries Farmers Organization Full Project Proposal Field Verification Government Organization Government of Nepal Grant Applicant Grant Recipient Grant Recipient Organization International Competitive Bidding Monitoring and Evaluation Management Information System Ministry of Agriculture Development Memorandum of Understanding Non-Governmental Organization Project Management Team Project Concept Note National Project Steering Committee Project for Agricultural Commercialization and Trade Project Director Project Implementation Manual Regional Technical Support Group Sub-project Appraisal Committee Technology, Information and Market Infrastructure

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TSC TSG VCDP VDC WB

Technical Sub-Committee Technical Support Group Value Chain Development Plan Village Development Committee World Bank

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1. 1.1

INTRODUCTION Background

Project for Agriculture Commercialization and Trade (PACT) of the Ministry of Agriculture Development (MoAD) has prepared this instruction manual for the use of those:

(a)

Ministry of Agriculture Development (MoAD) officials, PACT staff and consultants who would participate in the field verification of Project Concept Notes (PCNs) which have been selected by Project's Sub-Project Appraisal Committee (SPAC) for the purpose of field verification after review and assessment of PCNs (third call) by the project based on the pre-approved evaluation criteria (eligibility criteria and technical evaluation)

(b)

Grant Applicants (GAs) whose PCNs have been shortlisted after field verification (FV) for submitting Full Project Proposal (FPP) at PACT

(c)

Independent peer reviewers who would be recruited by PACT as per the approval of SPAC for evaluating technical and financial aspects of the FPPs based on the evaluation criteria as provided in this instruction manual.

As this instruction manual has amended project's earlier guidelines/instructions regarding field verification, FPP development, FPP evaluation processes and criteria, all concerned agencies, grant applicants and stakeholders are expected to read this manual carefully. Unless revised, these guidelines will remain valid for the forthcoming project calls as well.

This manual has been prepared based on the experience and lessons learned of PCN-FPP assessment (first and second call), current status of sub-projects being implemented through project's matching grants, comments and suggestions of the peer reviewers and feedbacks from grant recipients. Likewise, this manual essentially incorporates advice of the World Bank fifth implementation support mission (13-22 March, 2012) and the most recent MidTerm Review and Additional Financing Mission (July 23-August 6, 2012) as well.

1.2

Introduction to PACT

1.2.1 PACT's Development Objective


PACT is a six year project being implemented by the MoAD through the assistance of the World Bank since 13 November 20092 for accelerating agriculture commercialization process in Nepal. The development objective of this project is to improve the

Date of effectiveness

competitiveness of smallholder farmers and the agribusiness sector in selected commodity value chains in 25 districts supported by the project.

PACT intends to achieve above objective by: (i) helping farmer groups and cooperatives to engage in profitable market-oriented production and improved access to markets through the provision of technology and information services and critical public infrastructure and linkages to agribusiness; (ii) creating and strengthening industry-wide partnerships along the value chain, thus forging linkages between producers, traders, processors, and other stakeholders and, (iii) reducing existing obstacles to agriculture and food trade thereby increasing the ability of farmers and agribusiness to respond to Sanitary and Phytosanitory (SPS) measures and food-quality standards to meet domestic and international market requirements

Since its inception, PACT has been partially financing demand-based proposals of farmer groups, agro enterprises, commodity associations, cooperatives on competitive basis through transparent process to enable them to engage in profitable market oriented production and promote partnership and market linkage with other value chain participants and agribusinesses.

1.2.2 Project Location


The project area comprises 25 Terai and Hill districts in the four Development Regions of Nepal, namely, Central, Western, Mid-western and Far-western Regions. Of these, 14 are located in Terai and 11 in Hills region (Figure 1). The districts are: Bara, Chitwan, Sarlahi, Dhanusha, Kavre, Parsa, Rautahat, Mahottari, Dhading, Kathmandu, Lalitpur, Rupandehi, Nawalparasi, Syangya, Palpa, Kaski, Tanahu, Kapilvastu, Lamjung, Dang, Banke, Bardiya, Surkhet, Kailali, Kanchanpur. These districts have been selected based on the level of agriculture commercialization, availability of economic infrastructure and number of organized farmer groups that are already engaged in the production of high value commodities.

Figure 1: Map of Nepal Showing PACT districts

1.2.3 Project Components


The project is comprised of three components which are summarized below: Component 1. Agriculture and Rural Business Development. The objective of this component is to enable farmers to engage in profitable market-oriented production and to promote partnerships and market linkages with other value chain participants3 and agribusinesses. This component assists agro-enterprises, commodity associations,

cooperatives, registered farmer groups/organizations and technology and service providers to actively engage in the development of commodity value chains by partially financing demand-driven investment proposals through competitive matching grants. This component also assists investments aimed at creating viable enterprise-based farmer institutions that are linked to other value chain participants and are actively engaged with the markets. The specific activities supported under this component include:
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Value chain participants include cooperatives, farmer groups and farmer organizations, traders. They could, either be: (i) membership-based organizations (farmer groups, cooperatives, commodity associations) or (ii) individual legal enterprises like input suppliers, traders, processors and companies.

Pre-investment and advisory support to enable farmer organizations (FOs) and value chain participants, to prepare subproject proposals and business plans for grant funding under this project. In general, this type of support will be provided by Regional Technical Support Group (R-TSG);

Direct financing of approved subproject proposals in technology, information and market infrastructure support. There are two categories of assistance under this activity, namely Technology, Information and Market Infrastructure (Category 1) and Agribusiness Support (Category 2).

The first category under "Technology, Information and Market Infrastructure " (in short, TIM) includes (i) acquisition of improved genetic/planting materials, as well as testing, multiplication, and dissemination/distribution and, (ii) adoption of small and medium-size quality improving technologies (such as processing, grading, and packaging). The grant supports demonstrations of proven and available technologies for making them accessible to the value chain participants including farmers. Investments in rural market infrastructure include activities such as storage facilities, grading and sorting equipment, value addition facilities, small irrigation systems, link roads, collection centers, improved technological inputs, facilities to improve access to market and other relevant projects.

The maximum grant amount under this category for each subproject would not exceed US$ 35,000 or 70% of the total subproject cost whichever is less. The balance amount is expected to be covered by contribution of the implementing institution(s), the partner institution(s) involved, and/or the beneficiaries. Farmer groups and small cooperatives with low financial capabilities are advised to participate in this category.

In second category of assistance, that is, Agribusiness development (ABD), the project provides partial funding to demand-driven investment proposals of agro enterprises, commodity associations and cooperatives that are actively engaged in the development of commodity value chains (Category 2).

This type of assistance is directed towards agribusiness support to co-finance investment proposals from commercial and existing agro enterprises, commodity associations and cooperatives that are actively seeking to expand. Subproject proposals that qualify for competitive grants will have one or more of the following 4

general characteristics: (i) provide clear linkage through formal contracts between farmer organizations and agribusiness and (ii) have some public good character that benefits many participants in a value chain.

The maximum grant amount under this category for each subproject would not exceed US$ 50 000 or 50% of the total subproject cost whichever is less. The balance amount is expected to be covered with equity and further sources of funding (such as bank loans).

Component 2. Support for Sanitary and Phytosanitary Facilities and Food Quality Management. This component aims to strengthen the efficiency and effectiveness of Sanitary and Phytosanitory services in order to reduce existing obstacles to agricultural and food trade. It also aims to support the private sectors efforts to gain market advantage through improved food quality management. As such it provides critical backing to the value chain investments being supported under component 1 and other related projects implemented by Development Partners. The SPS and food quality management components are implemented through three line departments, namely the Department of Food Technology and Quality Control (DFTQC), Department of Livestock Services (DLS), and Department of Agriculture (DOA). They provide services to the value chain participants and private sector to support national and international quality requirements. Component 3. Project Management, Monitoring and Evaluation. This component finances overall project management, monitoring, evaluation and reporting. A Project Management Unit has been established in Kathmandu for the overall management of the project.

1.3

Competitive Matching Grant

The purpose of competitive matching grants (CMGs) is to enhance the use of technology and knowledge by farmers and other entrepreneurs, and help them to improve lacking physical infrastructures and establish market linkages/access. Through the competitive

matching grant, PACT envisages to improve the competitiveness of small farmeres and strengthen collaboration and partnerships among value chain participants. It is focused on PACT's first intermediate result which is the creation and strengthening of partnerships between agribusinesses and farmer groups and assistance to engage in profitable marketoriented production.

Central to PACT's matching grant assistance is to support market oriented, innovative and sustainable competitive proposals of farmer groups, cooperatives, agro-enterprises, traders and processors which potentially contribute to PACT's overall objective of enhancing competitiveness of small holder farmers. The grant amount is directed towards the promotion of technology testing and adoption, market infrastructure development and agribusiness development. Under the competitive matching grant, funds from the PACT are matched with funds from the beneficiaries through competitive process. PACT's CMGs can be considered as a modality for public-private partnership. PACT's funding arrangement is short, usually for 2 years, and is demand driven. Therefore, it is not an alternative to large infrastructure development. Calls for submission of proposals are prescribed within the priorities set in the PACT Project document. 18 thematic areas have been approved by National Project Steering Committee (NPSC) under call 3. The most important thing to remember before submitting Full Project Proposal (FPP) is that PACT's matching grant scheme is operated through output based financing system.

Output based financing system: represents a fundamental shift in finance while funding sub-project related activities a shift from considering inputs to outputs or performance, and from institutional4 needs to project priorities.5. In this system, PACT will provide grant amount in installments to the grant recipients on the basis of milestones agreed during the grant negotiations. 1.4 Organization of the Guidelines

This Guideline for submitting Full Project Proposal (FPP) to PACT under call 3 consists of following four chapters as follows:

Chapter 1: Introductory Chapter Chapter 2: Field Verification Chapter 3: Instructions to the grant applicants including the definitions of the key terminology used in the guidelines and standard format for FPP submission Chapter 4: FPP evaluation criteria and decision rules

Formats for field verification, letter for invitation, standard formats for FPP and criteria including norms for PACT's matching grant assistance are given in Annexes.

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Here iinstitution should be understood by PACT. Project here refers to the sub-project being implemented by the Grant Recipients.

2.

FIELD VERIFICATION

Unlike the previous calls, in the third call, the project has decided to carry out field verification prior to allowing successful PCN applicants to submit full project proposal (FPP) . Key reasons for this change are:

(a)

Assess grant applicants' technical, institutional and financial capabilities and commitments prior to making GAs to spend resources (fund/money and time) for full proposal development

(b)

Provide opportunity to poorly prepared, weak and less competitive organizations to compete in project's future calls after making adequate preparations and full understanding of PACT's approach to accelerating agricultural commercialization in general and competitive matching grant in particular, rather than spending valuable time and limited fund for preparing detail FPPs

(c) (d)

Ensure transparency and good governance within the grant applicant organizations Encourage GAs to write proposals by themselves and make them aware about key requirements and norms which GA will need to observe/follow should they win the competition, later to avoid unnecessary delays in negotiations and facilitate timely implementation of sub-project activities cost-effectively

2.1

Field Verification Process

(a)

Project will form one or more field verification teams led by under-secretary level officer working at PACT for the purpose of field verification. The team's composition will be as follows:

Coordinator- Under-secretary level officer, PACT Members o o o Representative, MoAD Representative, DADO or DLSO from other districts Representative respective programme directorates under the DOA/DLS

Explanation: Absence of one or more members in the above team will not bar the project to carry out field verification in any district. (b) Before dispatching the field verification team to the districts, the project will publicly announce with tentative timetable of field verification in order that grant applicants

and respective organizations could prepare themselves effectively and present proposals convincingly to the team. (c) Before the start of field verification, the team will ensure that the concerned persons together with the one who applied on behalf of the organization (contact person specified in the PCN) and chief executive or chair person of the organization are present during the field verification. (d) The team will fill in the format presented in Annex 1 and make the decision on site itself after completion of the field verification of the specific PCN whether (i) to issue invitation letter to the PCN proponent to submit the FPP to the project (sample letter in Annex 2) or (ii) to suggest GAs for undertaking preparatory works in order that it will be able to submit full proposal meaningfully with a high success rate in the future (sample letter in Annex 3). (e) The team's decision should be consensus. The coordinator will refer to the project director (PD) when a team fails to come into a common decision. The PD will then send a new team for re-field verification within seven working days. The decision of the last team will be final. In case, the second team fails to make a consensus decision, the majority decision of the second FV team will be the final. (f) Before the start of the field verification, the team should get a commitment from the grant applicant organization mentioning that it will fully respect team's decision and make no obstructions on whatever be the team's decision. Nevertheless, this would not restrict GA's right to appeal to the project. (g) The team is hereby advised for not to issue a letter to grant applicant to submit a full project proposal when any one or more of the following situations are found during the field verification (1) the GA and its corresponding beneficiaries/participants responsible to shoulder part of the total project costs have no any previous experiences in the thematic area applied for the project's matching grant. (2) Proposed location by GA is geographically unsuitable for commercial production and marketing of the commodities. (3) Implementation of the proposed sub-project is likely to cause irreparable damages to the environment. (4) Representatives of the GA including the contact person mentioned in the PCN do not know what is written in the PCN and are not aware of any activities to be carried out if the proposal will be approved. 2.2 Code of Conduct for the Verification Team

The team will observe the following code of conduct during the field verification 8

(a) Reach to proposed sub-project site on time. If it will be delayed due to unavoidable reasons such as traffic jam, strikes, road closures, land slides, flood etc. it will keep on updating the situation to the concerned organizations and inform the new time or date; (b) Maintain objectivity, reliability and transparency during the field verification. (c) Carry out field verification in a very friendly and non-threatening manner. (d) Provide adequate justifications with convincing reasons to the GA when the PCN is being rejected following FV. (e) Inform the GA that, if it is not still convinced with the decision of the FV team, it will need to appeal to the Project Director within a week from the date of the FV. (f) Will keep the project director updated on the field verification results daily as far as possible. 2.3 Roles and responsibilities of the Project Director

(a)

Dispatch the new (second) FV team to a site of a particular sub-project site proposed by any grant applicant within seven working days from the date of complaint/appeal lodged by a grant applicant organization.

Explanation: Project will take no action when the project does not receive any petition against the decision of the FV team within seven days from the date of field verification. The decision of the second FV team will be final.

(b)

Closely monitor the activities and performance of the FV team and may cause the FV team to return from the field when serious concerns and issues have been lodged or informed.

3.

FULL PROJECT PROPOSAL DEVELOPMENT AND SUBMISSION

As proposal must use the formats and follow this guidelines, please read carefully all instructions provided to you in this section before writing full project proposal (FPP). Standard forms for FPP submission are presented in Annex 46 and Annex 57. Before starting to write the proposal, GAs are strongly urged to read the following instructions carefully. When there are any Remember: You will need to submit three copies of proposal together with a soft copy (CD). confusions clarifications Remember: Neither allow your excellent competitive proposals to be copied by others, nor copy from others and from ambiguities, the project please officials get and

specialists at their earliest. Grant applicants are

advised to write the proposal by themselves with their originalities and innovativeness. If found, copied proposals are rejected without any reasons. When two copied proposals will be evaluated by a same reviewer, probability of rejection of both the proposals is almost 100 percent. 3.1 Key Instructions

(a)

Thematic Area:

Identify only one thematic area (value chain) from among the

priority thematic areas (value chain) as stated earlier in your PCN (third call). This should be same as was indicated in the PCN. FPP which selects more than one thematic areas or changes the thematic area will be disqualified. (b) Grant Category: PACT has two category of grant. First category is technology, information and market infrastructure. This is generally available for farmer groups and cooperatives. Since PACT does not intend to fund farmer groups in this category, all farmer groups whose PCNs have been approved for full project proposal submission after the field verification may shift to category 1 or TIM, if mentioned category 2 or ABD. When any farmer group is found to continue with category 2 type of grant assistance, the proposal will be evaluated with the criteria under category 2 or agribusiness development (ABD). The second category is Agribusiness Development which is available for cooperatives, producers associations and private firms. Private organizations or firms and producer associations can change to this category, if they have indicated category 1 in their respective PCNs. Cooperatives are therefore free to participate in both categories but required to indicate in which

For Grant Applicants applying for Category 1 For Grant Applicants applying for Category 2

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category they are applying for. Failing to indicate category means disqualification for the projects grant. (c) Documents Check. Before submitting the FPP, ensure that all documents and

evidences as indicated below are included. If any one of them is missing, your proposal will not be evaluated. SN 1 2 Evidences/Documents Required Registration certificate (renewed) Explanation Certificate (copy).

Financial Standing of the Grant Farmer Groups- Recent bank statement Applicant: and details on group saving and credit amount, if any. Cooperatives and Producers AssociationLatest audit report (copy), VAT or PAN registration (copy), and recent bank statement. Private firms and entrepreneurs- (a) Latest audit report (copy), (b) VAT and PAN registration (copy), (c) recent tax clearance certificate (copy) and (d recent bank statement . Commitment letter from Grant A letter from the GA together with minutes Applicant to bear its committed of meeting in case of membership share organizations like farmer groups, market committees, cooperatives and producers association) and private firms with more than one shareholders), and a letter when the firm is owned by a single person.

(d)

Optional Evidences. The following documents are optional. Attach their copies if you have any, as these will be carry weight during the evaluation. 1 Loan assurance, if received from Attach copies of any financial institutions financial institutions Award and certificates letters issued by

Provide copies if the grant applicant has received any certificates or awards from international or national organizations such

Cost-sharing agreements between Agreement/MOU copy when Grant Applicant, Service agreements have been made. Recipients(beneficiaries) and other Collaborators/Partners such as VDCs and DDCs, if any

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(e)

Caution against Fraud and Corruption Practices: PACT will reject a proposal for award if it finds (a) the applicant recommended for grant award has, directly or through an agent, engaged in corrupt, fraudulent, practices in competing for the grant award and (b) any misinformation in the data and information provided in the proposal including attachments.

(f)

Correctness and Reliability of Evidences Before contract award and during the implementation as well, PACT may test the correctness and reliability of evidences and documents submitted by the GA. When PACT is convinced that the GA provided misinformation and or misrepresented the facts in the FPP, PACT holds rights to cancel the grant even in the midway of the sub-project implementation.

(g)

Applicant will have to submit three copies of full proposals along with a soft copy (CD).

(h)

The proposal must adhere to the time and funding limits depicted in the call.

3.2 Parts of Full Project Proposal (FPP)

FPP should comprise of two parts as follows: Part A: General (Details of Grant Applicant Organization and the Proposed Project) Among others, it should provide, at least, the following information: (a) A brief description of the applicants organization and expereince of the organization (Section 1 and 2) (b) Staff and other facilities presently available with the applicant (Section 3 and 5) Include in the Attachment) (c) Short description about the proposed project (Section 4 and 5) (d) Environment and social screening (Section 6) (e) Evidence of secured financing from the part of grant applicant (f) Co-financing arrangement, if any Part B: Technical and Financial Proposal Part B.1 (Technical Proposal), among others, should provide the following information (a) Brief description of the proposed project (Section 1)

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(b) Presentation of problems and constraints related to the participation in or expansion of agribusiness (section 2) (c) Technical approach or methodology to resolve the problems (section 3) (d) Nature and type of linkages with other value chain actors (section 4) (e) Output and outcome after the completion of the project (section 5) (f) Workplan including activities (section 6)

Part B.2. Financial Proposal should include the following Total costs depicting funding source- applicant's contribution (cash and kind) and grant amount requested from PACT Detail cost estimates by outputs and activities For category 1 FPP, estimate annual gross and net income per household and unit area or number as applicable and For category 2 or agribusiness development: Gross and net profit per enterprise per year, benefit cost ratio, break-even point and FIRR in addition to the above details

3.3 (a)

Other instructions for the FPP Applicant should declare the following in the full proposal to reconfirm environmental soundness and social responsiveness: Questions Yes No

a) Does this project intend to use or depend on any resources of national parks and protected areas or any critical aquatic and terrestrial habitat area? b) Is the project area proposed in this proposal located in high risk zone such as landslide prone area, steep slopes, highly degraded land in hills, riverine area susceptible to annually flooding, and in areas causing large-scale soil erosion? c) Will this project involve land clearance on slopes greater than 45 degree? d) Will this project affect the heritage site? e) Will this project involve in logging or causing any major environmental harm? f) Is this project likely to eliminate indigenous plant species of ecological significance? g) Does this proposal involve any activity that is likely to make irreversible adverse impact on indigenous communities, women and vulnerable groups? h) Does this proposal include any activity that promotes or involve incidence of child labour?

Remember: The name and identification of GA should not appear in Part B (Technical and Financial Part). Failing to comply this leads to disqualification.

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i)

Does this proposal require some families loosing their prime farm land and assets on the land and displacement of families due to construction of infrastructure PACT does not finance administrative/managerial costs in both category 1 and

(b)

category 2. Refer Annex 6 for details norms and criteria on the goods, services and activities for which PACT may provide the matching grant . (c) The evaluation committee / peer reviewers shall evaluate the full project proposals on the basis of the responsiveness of the FPP to the Project Development Objectives (PDO) of PACT, applying the evaluation criteria, specified in Chapter 5. (d) Once FPP is submitted for evaluation, the applicant should not contact the Project Management Team (PMT)//Technical Support Group (TSG)/Regional Technical Support Group (RTSG) or the peer reviewers on any matter related to its Full Project Proposal. Any effort by the applicant to influence the examination, evaluation, and recommendation for award of grant would result in the rejection of the applicants proposal. 3.4 Key Definitions This section provides definitions of the various terminology used in the FPP. Grant Applicant: Grant applicant is the organization or individual who have submitted FPP to the PACT. Direct Beneficiaries: Direct beneficiaries are those households or members of membership organization and shareholders of a private firm (legal entity) who will participate in project's activities and/or share part of sub-project cost) (which include PACT's matching grant, if approved after going through full proposal selection processes and beneficiaries' share). All members of a membership organization such as farmers groups, cooperatives, producers and traders association and private firm can be considered as beneficiaries,

Indirect Beneficiaries: Indirect beneficiaries are those value chain participants such as inputs suppliers, processors and traders, and laborers who would not participate in project activities as direct beneficiaries but likely to be benefitted from the use of technology, business promotion, employment generation and other multiplier effects created as a result of proposed project implementation. Participating Organization: Participant organization is that organization which collaborates with the grant applicant in any capacity such as collaborator, funding partner or cooperator. 14

Peer Reviewers: Refers to those professionals (independent) whose services have been taken by PMT to evaluate the FPP submitted by grant applicants. Project Management Team: A Project Management Team (PMT) has been set up by the Mi MOAC to implement, facilitate, and coordinate project activities. The PMT consists of Project Director,, Monitoring and Evaluation Officer, Planning and Administrative officer,

Procurement Officer, Accounts Officer, Nodal Officer from MOAC, accountant and support staffs. PMT is responsible for screening subprojects for award of grant and monitor their implementation.

Regional Technical Support Group (RTSG): Refers to consultants recruited by PACT and fielded at the regional level for assisting the Project Management Team (PMT) for acting as PACT's focal/contact unit in the field, assisting the sub-project to implement the sub-project activities, supervision and monitoring, organizing stakeholder workshops; consultations; training etc. RTSG also assists the prospective applicants in preparing the FPP. This group works under the supervision and guidance of TSG.

Sub project: Refers to those FPPs which have been approved after evaluation and contract negotiation has been successfully carried out. Technical Support Group (TSG): Refers to consultants recruited by PACT for assisting the Project Management Team (PMT) in the overall functioning of the grants program including monitoring and evaluation.

Value chain participant: Value Chain Participants include cooperatives, farmer groups and farmer organizations and traders. They could, either be: (i) membership-based organizations (farmer groups, cooperatives, commodity associations) or (ii) individual legal enterprises like input suppliers, traders, processors and companies.

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4.

EVALUATION OF THE FULL PROPOSAL

FPP will be assessed in three levels simultaneously as shown in figure 2 and table below. First, the proposal will be assessed based on organizational, technical and financial criteria. Since environmental and social screening will be carried out during the field verification, environmental specialist will ensure that the FPPs have included required ECOP and EMP as advised during the field verification.

Table: PCN-FPP Evaluation Steps


Step One Activity Field Verification of shortlisted PCNs A. Technical Evaluation (a) Organizational aspects (b) Technical approach and methodology B. Financial evaluation (a) Budgeting, revenue and expenditure plan, and financing plan and soundness (b) Financial feasibility (BCR, Gross Margin and FIRR etc.) Tabulation (preparation of score sheets) Reconfirmation on environment and social assessment Review of FPP evaluation and recommendation to NPSC Review and approval (final)

Two

Three Fourth Fifth Sixth

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Full Proposal Evaluation Process (Third call) No financing for the time being, further preparatory works required Shortlisted PCN Field Verification Recommendation for further evaluations

Technical Evaluation

Financial Evaluation

Organizational Capacity Assessment

Technical Approach and Methodology

Rank/order of the proposals receiving at least 50% of the maximum possible score prepared based on the combined score of technical and financial evaluation Reconfirmation on Environment and Social Assessment

SPAC reviews and recommendation to NPSC

Final approval by NPSC by SPAC 17

A.

Technical Evaluation

Technical evaluation will include two components, organizational assessment and technical aspects. TSG will carry out organizational assessment and the technical peer reviewers will carry out technical aspects evaluation. Scores for the two components will be divided as follows: Component Maximum possible score 40 Criteria with scores in bracket

Organizational capacity assessment

Technical Approach and methodology

60

(a) Years of experience in the thematic areas applied (5) (b) Number of projects/ programmes implemented over the last five years (5) (c) Physical facilities (Own building, land etc.) (5) (d) Machineries and equipment (5) (e) Financial standing (5) (f) Understanding the objectives of PACT and consistency and coherence with PACT's objectives (10) (g) Staffing (5) (a) Problems being addressed (10) (b) Coverage (Area, HHs, Number etc.)-(5) (c) Linkages with value chain actors and stakeholders (Forward and backward) (5) (d) Targets (Outcome, Output- productivity, production and sale)-(10) (e) Methodology (Activities to accomplish outputs)(10) (f) Work Plan-(10) (g) Sustainability of the project's activities, outputs and outcomes after end of PACT's support (10)

Total

100

PMT with the assistance of the TSG will further develop sub-criteria and corresponding maximum possible score for each sub-criteria within the total score allotted for the respective criteria.

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B. S.N 1

Financial Evaluation Criteria with scores in bracket Budgeting _ Total project cost (Capital cost and operation cost breakdown) (5) _ Realistic budget planning (activity wise coverage an unnecessary mark ups) item wise costs) (5) _ Responsiveness to PACT's norms (5) _ Consistency between work plan and budgeting (5) Financing plan _ GA and beneficiaries' share (own resource mobilization and evidences on financial standing (10) _ PACT's contribution (5) _ Other organizational sources (DDC/VDC, Line Agencies, Projects, NGOs, INGOs Cooperatives, MFIs, Banks and Finance Companies etcgrant or loan) (5) Revenue and expenditure plan _ Estimation of revenue (Market price justification and sale proceeds) _ Inclusion of necessary cost items Category 1 (TIM): Gross and Net Income per HH, Per unit land area or Livestock Unit as applicable (40) Grant category 2 (ABD): Gross and Net Income per HH, Per unit land area or Livestock Unit as applicable (20) Financial ratio/analysis: BCR, Gross Margin Analysis, FIRR ) (20) Total 100 Maximum Possible Score 20 Responsibility

20

20

40

Note: Figures inside bracket denote maximum possible score.

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ANNEX 1: FIELD VERIFICATION FORMAT

Government of Nepal Ministry of Agriculture Development Project for Agriculture Commercialization and Trade Standard Form for Field Verification (Third Call) PACT Reference Code

Date of Field Verification ______________________ District Name of the Grant Applicant Address: I. Name Field Verifier Position Representing Organization

Coordinator of the FV team: II. Contact Details of the GR (Re-confirmation) and

Chairperson name mobile number:

Contact person/applicant's name and mobile number: Email, if any: Fax (Deliverable), if any

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Prior to the start of the field verification, please check the following and get the evidence. SN Document Tick () if available Evidence and (X) if not available Certificate

Registration at competent authority as per the PIM Does this applicant has an original copy of the PCN submitted by it Commitment letter from the GA to shoulder its share/investment part as proposed in the PCN and to implement the proposed activities under PACT's output based financing system

Verify

First verify the letter if submitted in the PCN and later ask for a new letter at the end of FV process following Team's decision to issue FPP invitation letter Copy/original letter from the concerned organizations

Commitment letter from the Bank or financial institutions to provide credit to the grant applicant subject to the approval of the matching grant by the PACT, if applicable Commitment letter from the collaborating agency to shoulder part of their finance/project cost, if the Grant Applicant expects to receive such assistance as indicated in the PCN Presence of the current chairperson and the contact person mentioned in the PCN

Verify the letter with the GA and also with the collaborator, if present during FV

Names

III.

Participants in the field verification from the side of the grant applicant (Get Attendance with mobile/telephone number etc.)

21

IV.

About Grant Applicant Organization

Name of the Grant Applicant Organization: Year of Establishment Membership (composition) Body General body Executive committee Key specialties of GA (Maximum 3) Dalits M Janajatis M F Others M F Total M

Major activities (at present)- Maximum 5

Physical Infrastructure Details Particular Land Office Building Storage House Collection Center Any other (Specify) Number Size Area Ownership

Equipment, Machinery and Transport Facilities (Owned) Name Number Condition (Working/Not Working)

Staff (Working on salary/honorarium) Name Full Time Part-Time Financial Status of GA Details Bank deposit Approx. Remark Name of the Bank Number Male Female

22

Payable to others, including loan

Name of the Bank, if loan is taken from the Bank Name of major institutions/organizations

Receivable from others including Bank , donors and service recipients Cash with GA, if any Equity

Institutional linkages and affiliations of GA (Details of other agencies partnering with GA at present and past) Past Purpose of linkages/affiliations Present Name of Organization Purpose

Name of the Organization

Is this GA doing any of the following activities? Questions Mark ( ), if the response is Yes and (X) if the response is No and Z if the response is sometimes Reasons, if response is X and Z

Organization of general assembly regularly Organization of executive committee meeting Annual audit Key problems and challenges of this organization (Maximum 5) (a) (b) (c) (d) (e)

23

V.

About the proposed proposal/project (PCN)

Title of the Proposal: Thematic Area Grant Category as per Application:

Experience of the grant applicant organization8


SN Name of the projects/ activities/programs carried out in the past and that are currently underway Period (From To ) Target group (beneficiaries) Client, if any Partners, If any Current status (Complete d, dropped, on-going, ) Key activities

Objectives/goal of the PCN/proposed project (Maximum 3) (a) (b) (c) Key activities (In bullets)- Maximum 10

Target groups/beneficiaries Dalits Male Janajatis M F Others M F Total M

Female

Outputs from the proposed project (a) Present (Baseline situation) Production Productivity Sale (Mt) Sale Rs/Kg price,

Crops/commodities Area/No

Explore the consistency between the thematic area for which this organization has applied for PACT's partial funding and experience of the organization.

24

(b)

Following the completion of the project, if approved after technical and financial proposal (end of project situation) (Maximum 2 years period ) Production Productivity Sale (Mt) Sale price, Rs/Kg

Crops/commodities Area/No

Estimated Project Cost: S.No 1 A A1 Funding source Applicants contribution (Proposed) Cash Own source as equity from other source (this could include A 2 loan from bank, contribution from other organizations such as VDC, NGO, and other partners) B 2 as Kind Grant requested from PACT Total Project Cost NRs As % to total cost

VI.

Expected date of commencement of the project (days from signing the contract: __________ days Social/Environment Assessment/Reconfirmation Issues :

VII.

Reconfirm the location of the sub-project areas. If this sub-project will be implemented in more than one locations (VDCs), please indicate detail information about each location. o Information on Immediate Surroundings

Name of the district VDC (Mention environmental setting in the immediate surroundings of the project location. Also, mention main ethnical groups residing in the surroundings of the proposed project area as well as direct beneficiary ethnic groups) 25

Particular Forest/wildlife/other resources Water bodies (River, pond, lakes) National Park/Protected Areas Drinking Water source Heritage site/temple/religious site Grave yard o

Yes

No

If yes, Remarks,

Information for Environmental and Social Screening

(Further, applicant has to reconfirm responses to each of the queries sought by the project. None response to any of the questions may lead to disqualification) Confirmation of environmental social screening (Reconfirmation) Questions 1. Does the proposed project intend to use or depend on any resources of national parks and protected areas or any critical aquatic and terrestrial habitat area? 2. Is the proposed project area located in high risk zone such as landslide prone area, steep slopes, highly degraded land in hills, riverside area susceptible to flooding, and in areas causing largescale soil erosion? 3. Will this project involve land clearance on slopes greater than 45 degree? 4. Will the proposed project affect the heritage site? 5. Will the proposed project involve in logging or causing any major environmental harm? 6. Is the proposed project likely to eliminate indigenous plant species of ecological significance? 7. Does the proposed project involve any activities which are likely to make irreversible adverse impact on indigenous communities, women and vulnerable groups? 8. Does the proposed project include any activities that promote or involve incidence of child labour? 9. Does the proposed project require some families losing their prime farm land and assets on the land and displacement of families due to construction of infrastructure 10. Will the proposed likely to use pesticides? 11. If pesticide use is likely, what are potential pesticides (is the pesticide listed in the negative list of Pesticides, i.e. not permissible Yes No

26

for use in PACT (see PACT's Project Implementation Manual and Banned Pesticides for Nepal9 o Is it necessary for organization to prepare environmental code of practice? Check(1) Yes (2) No If yes, (Ask it to prepare it and include in the full proposal). o Is it necessary for this GA to prepare environmental management plan? Check- (1) yes (2) No If yes, (Ask it to prepare it and include in the full proposal) VIII. Key problems and constraints of the commodities/value chain for which this GA has applied for commercial production and marketing. '

IX.

Opinion of the GA whether it will be able to achieve aforementioned objectives and outputs within two years period if your full proposal will be approved by the project following its rigorous assessment process? Give reasons.

Field verification team's decision We have hereby decided to issue/not to issue invitation letter to the grant applicant to submit full proposal at FPP with consensus/majority decision of the field team member as the grant applicant. (a) Name and signature of those agreeing to issue letter to submit full project proposal . Name

Position

Signature

Reasons

(b) Name and signature of those disagreeing to issue letter to submit full project proposals with reasons Name Position Signature Reasons

Please ask the list of such pesticides from PACT or your DADO, if you have no idea about PACT's negative list of pesticides and banned pesticides.

27

Key recommendation to the grant applicants Will this GA required to change the category from 1 to 2 or vice versa?- Yes/No Will this GA required to be increase the area/coverage? Yes/No Will this GA required to prepare detail ECOP? Yes/No Will this GA required to prepare environment management plan? Yes/No Any other recommendations (Maximum 3)

28

Government of Nepal

Ministry of Agriculture Development PROJECT FOR AGRICULTURE COMMERCIALIZATION AND TRADE


Ref. No: Dispatch No.: Sallaghari, Maharajgunj Kathmandu, Nepal

ANNEX 2: LETTER OF INVITATION10


Reference Number: To --------------------------Date

Dear Mr. / Ms We are very much pleased to inform you that your project concept note on " " submitted as per our call no.3. has been shortlisted for the purpose of full proposal submission after field verification. Your full proposal should arrive to the project office (any one of the addresses indicated below) not later than (insert time and date) 30 days from today (date of receipt of this invitation letter). (a) Regional Technical Support Group Office (Chitwan, Kathmandu, Pokhara, Banke and Kailali, (b) PACT Project Office, Salla Ghari, Kathmandu Prior to start drafting of full project proposal (FPP), we strongly advise you to read the FPP instructions carefully. Please note that the grant amount requested by your organization in the FPP could be automatically decreased when (a) your cost estimation for any activity, equipment/machinery or construction is above the market rate, or (b) your proposal contradicts with the project's norms for matching grant (see Annex 6). It is very important that your proposal should be consistent with project's norm for matching grant. Submitting the proposal without complying to PACTs norms will bring you in a very disadvantageous position with approval of grant amount lower to the maximum grant amount which PACT
10

This letter will be issued upon the completion of the field verification with teams consensus decision to issue this letter to the GA for submitting the FPP.

29

might approve under the specified grant category. Therefore, please consult project officials or RTSG/TSG specialists for appropriate advice and do not be confused. Considering difficulties and problems in past negotiations, this provision has been specifically introduced from this round (third call). For further guidance with respect to full proposal submission, information and training for proposal writing, please do contact respective RTSG, DADO/DLSO or the project office, Maharajgunj, Kathmandu. They will provide you any assistance free of cost. However, please note that you will need to write the full project proposal yourselves. Neither TSG/RTSG nor any offices under the MoAD can write the proposal for your organization. If any one of the staff or specialists working directly or indirectly for PACT is found to have written the proposal for you, your proposal will be disqualified due to the conflict of interest. Before submitting the full proposal, we request you to read all the instructions, specifically Chapter 3 and Annex 4 for grant category 1 (TIM) and Annex 5 for grant category 2 (ABD) carefully provided herewith to you. Finally, we would like to remind you that you should not write name or any identification which is likely to disclose the identification of your organization or proposal except subproject code number provided herewith in Part B (Technical and Financial Proposal) . Your code number is XXXX. If you do not remember your code number, do not worry PACT/RTSG will assist you in this regard. But your proposal will be disqualified if any identification sign or name is found in Part B. Environment and Social Management Category (ESMF) of your proposal is .Please ensure that your FPP includes environment code of practice (ECOP), if it is category 3 and activities for environment monitoring if ist category is 4. Best of Luck Expecting a very sound, exemplary, sustainable and innovative proposal that would accelerate agriculture commercialization in your area and neighborhoods.

Coordinator Field Verification Team c.c District Agriculture Development Office, District Livestock Service Office

30

PACT Code

Government of Nepal

Ministry of Agriculture Development PROJECT FOR AGRICULTURE COMMERCIALIZATION AND TRADE


Ref. No: Dispatch No.: Sallaghari, Maharajgunj Kathmandu, Nepal

ANNEX 3: FIELD VERIFICATION RESULT11


Reference Number: To --------------------------Date

Dear Mr. / Ms As you know our team carried out field verification of your organization's PCN on XXX in the presence of the chairperson and contact person of your organization among others However, we reluctantly regret to inform you that our team has come to the conclusion that your organization will be required to undertake some crucial preparatory works. The organization is not yet institutionally and financially capable to submit the full project proposal and participate in project's matching grant scheme which is highly competitive. Therefore, our team would like to request you to submit PCN again when it will be publicly advertised through national newspapers and other public media. Our team is confident that your organization would be successful in receiving project's highly competitive grant in our full calls. Good wishes and wait our future advertisements.

Coordinator Field Verification Team

c.c

District Agriculture Development Office, District Livestock Service Office

11

This letter will be issued upon the completion of the field verification with teams consensus decision to issue this letter to the respective Grant Applicant. 31

PACT Code

ANNEX 4: STANDARD FORMAT FOR FULL PROJECT PROPOSAL (THIRD CALL) CATEGORY 1
( For Farmer Groups and Cooperatives applying for the category 1 assistance: Technology, Information and Market Infrastructure) Government of Nepal Ministry of Agriculture Development

Project for Agriculture Commercialization and Trade


Documents/evidences to be submitted SN 1 2 Evidences/Documents Required Registration certificate (renewed) Certificate (copy). Explanation

Financial Standing of the Grant Farmer Groups-Recent bank statement and Applicant: details on group saving and credit amount, if any. Cooperatives and Producers Association- Latest audit report (copy), VAT or PAN registration (copy), and recent bank statement. Private firms and entrepreneurs- (a) Latest audit report (copy), (b) VAT and PAN registration (copy), (c) recent tax clearance certificate (copy) and (d recent bank statement

Commitment letter from Grant A letter from the GA together with minutes of Applicant to bear its committed meeting in case of membership organizations like share farmer groups, market committees, cooperatives and producers association) and private firms with more than one shareholders), and a letter when the firm is owned by a single person. Cost-sharing agreements Agreement/MOU copy when such agreements between Grant Applicant, Service have been made. Recipients(beneficiaries) and other Collaborators/Partners such as VDCs and DDCs, if any Loan assurance, if received from Attach copies of letter issued by any financial institutions institutions, if any Award and certificates financial

Provide copies if the grant applicant has received any certificates or awards from international or national organization

32

PACT Code

PART A: GENERAL Section 1: Details of Grant Applicant (GA) Organization

Name of the grant applicant organization Address of the GA (District, VDC/Municipality, Ward, Tole etc.) Telephone number of the GA Year of establishment/registration Current activities of the organization (Mention a maximum of 5 key activities)1. 2. 3. 4. 5. Contact/focal person12: Current position of the contact person within the GA Full address of the contact person (Permanent Address): Mailing address of the contact person, if different from the above permanent address Telephone Number (Landline) Fax: Email of the contact person:13 Type of the organization (Please check (1) only one which is most appropriately (2) (3) describes your organization) (4) Primary business of the GA organization (1) (Please check only one which applies to (2) (3) your organization) (4) (5) (6) (7)
12

Farmer group/committee Cooperative Producer Association Private Firm Producer Wholesaler Inputs supplier Processor Exporter Retailer Financial institution

This person is the person submitting the application. When the person is changed by the organization for some unavoidable reasons within the organization, this should be notified to the PACT at the earliest. 13 PACT suggests the contact person to open an email address before submitting the application to the PACT in order that it could pass on important information to him/her at the earliest regarding the status of the application and its processing. 33

PACT Code (8) Secondary business (Please check only (1) one which applies to your organization) (2) (3) (4) (5) (6) (7) (8) Section 2: Others, (specify) Producer Wholesaler Inputs supplier Processor Exporter Retailer Financial institution Others, (specify)

Experience of the grant applicant organization14

2.1 Experience
SN Name of the projects/ activities/programs carried out in the past and that are currently underway Period (From To ) Target group (beneficiaries) Client, if any Partners, If any Current status (Completed, dropped, on-going, ) Major activities

Note: You can include evidence (photographs), certificates, recommendations and so forth as evidences of the above in the Annex.

In addition to above table, you may further describe the experiences and achievements of your firm in words as well. 2.2: Baseline Information Provide the following information which describe the situation before PACT's assistance. Outputs Unit Quantity

Area coverage (required for crop related Katha/Ropani/Big proposals such as cereal seeds, flower, ha/Ha15 fruits, coffee and so forth) Number of Participant Households (HHs) (direct beneficiaries)16 A. HHs by Gender (a) Male HH head: (b) Female HH head: B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Brahmin/Chhetri etc (d) Muslim, Christian etc

14

Please do remember that your firm's experience is consistent with and matchess with the thematic area for which your organization has applied for PACT's partial funding. If your organization has been working in vegetable area, please do not submit proposal for milk processing. Likewise, no organization is allowed to apply for more than one thematic areas. More than one proposals from the same organization in different thematic areas will be rejected. 15 Use only one unit whichever you feel comfortable 16 Please provide the actual number of HHs who have been participating currently in the respective value chain or thematic area for which the GA has submitted the proposal. 34

PACT Code Average number of animals reared per HH by livestock type (Required for meat, milk related projects only) Total Production by commodity17 (Annual) Productivity by commodity per Unit Area/Number/HH as applicable (Last season) Gross sale in Rs by commodity18 Sale by commodity

Kg/Liter/Mt Mt/Ha Live weight, Kg/unit animal Litre/animal/lactati on period/HH Rs per Ha Rs per HH

Section 3: Physical and Institutional Capacity 3.1 Physical Infrastructure Details (Owned) Particular Land Office Building Storage House Collection Center Any other (Specify) Number Size Area Ownership

3.2 Equipment, Machinery and Transport Facilities (Owned) Name Number Condition (Working/Not Working)

3.3 Staff (Working on salary/honorarium) Name Full Time Part-Time Number Male Female

3.4 Institutional linkages and coordination Name of the organization Type Benefits received by GR

17

Provide information for only those commodities/value chain for which your organization has applied for matching grant through PACT. 18 Received from average amount sold multipled by average sale price per unit. 35

PACT Code Section 4: Proposed project/proposal

Title of the project/proposal Objective of proposal/project the

Thematic Area/Value Chain Grant Category check only one) (Please Category 1: Technology, infrastructure support Grant Information and Market

Category 2: Agribusiness support Grant Implementing partners, if any Collaborators, if any Number of HHs who would participate in the proposed project (Provide only the number of those HHs who would share cost/finance the proposed activities and share the benefits as well) Project cost (This includes grant amount requested from the project and the share of the grant applicant and beneficiaries/participants A. HHs by Gender (a) Male HH head: (b) Female HH head: B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Others Total project cost: Rs._______________19 (a) Grant amount Rs__________ requested from PACT, (a)

(b) Beneficiary's share (cash and kind) _ Cash Rs.___________________________ Kind Rs.___________________________ Total Rs.___________________________

Section 5: Proposed staff (Sub-project manager and accountant) to facilitate the implementation of the proposal. In this section, applicant should fill in the following table and attach CVs in the annex in the given format. Proposed person must sign in the CV and commit to work subject to the approval of the proposal. Name of Staff Sub-project manager Accountant Area of Expertise Position Assigned Task Assigned

19

Make sure that the amount you included here corresponds to the amount included in the financial proposal (Section 5). 36

PACT Code Section 6: 6.1 Social/Environmental Screening

Location

Please reconfirm the location of the sub-project areas and the information with regard to the immediate surroundings of the sub-project location provided by you earlier in your PCN. If this sub-project will be implemented in more than one (VDCs, please indicate detail information about each location/VDC. Failing to give this information could lead to eventually rejection/non-assessment of your proposal. Also reconfirm the following information with regard to ethnical groups residing in the surroundings of the proposed project area as well as direct beneficiary ethnic groups) Name of the district where this proposal will be implemented: Name of the VDCso Information on Immediate Surroundings Yes No If yes, Remarks,

Particular Forest/wildlife/other resources Water bodies (River, pond, lakes) National Park/Protected Areas Drinking Water source Heritage site/temple/religious site Grave yard

Are the main ethnical groups residing in the surroundings of the proposed project are also the direct beneficiary? Yes No

If yes, give the approximate proportion of such ethnical groups by ethnicity. Ethnicity Percent

6.2

Environment and social screening (Declaration)

Please reconfirm responses to each of the following queries as were reported earlier in the PCN. Questions 1. Does the proposed project intend to use or depend on any resources of national parks and protected areas or any critical aquatic and terrestrial habitat area? 2. Is the proposed project area located in high risk zone such as landslide prone area, steep slopes, highly degraded land in hills, riverside area susceptible to flooding, and in areas causing large37

Yes

No

PACT Code scale soil erosion? 3. Will this project involve land clearance on slopes greater than 45 degree? 4. Will the proposed project affect the heritage site? 5. Will the proposed project involve in logging or causing any major environmental harm? 6. Is the proposed project likely to eliminate indigenous plant species of ecological significance? 7. Does the proposed project involve any activities which are likely to make irreversible adverse impact on indigenous communities, women and vulnerable groups? 8. Does the proposed project include any activities that promote or involve incidence of child labor? 9. Does the proposed project require some families losing their prime farm land and assets on the land and displacement of families due to construction of infrastructure 10. Will the proposed likely to use pesticides? 11. If pesticide use is likely, what are potential pesticides (is the pesticide listed in the negative list of Pesticides, i.e. not permissible for use in PACT (see PACT's Project Implementation Manual and Banned Pesticides for Nepal20 6.3 Have you prepared environmental code of practice? Check- (1) Yes (2) No If yes, (Attach as an annex). If your response is no, explain why your project does not need to prepare environmental code of practice?

6.4

Have you carried out initial environmental examination (IEE) or Environment Impact Assessment (EIA)? Check- (1) Yes (2) No If yes, (Attach as an annex). If your response is no, explain why your project does not need to undertake IEE/EIA?

6.5

Have you prepared environmental management plan? Check- (1) Yes (2) No If yes, (Attach as an annex). If your response is no, explain why your project does not need to prepare environmental management plan?

6.6

Have you prepared any environmental and social policy and framework for your project? If yes, name them and include in the annex.

20

Please ask the list of such pesticides from PACT or your DADO, if you have no idea about PACT's negative list of pesticides and banned pesticides. 38

PACT Code o If this project does not intend to use any banned and negative list pesticides and chemicals, does this project intend to use any pesticides? Please check, the appropriate box? Yes o No

If yes, give the commercial names of the pesticides and chemicals which will be used most commonly? 1. 2. 3. 4. 5.

39

PACT Code PART B: TECHNICAL AND FINANCIAL PROPOSAL PART B.1: TECHNICAL PROPOSAL Section 1: Proposed project21

Title of the project/proposal Objective of project/proposal the

Thematic Area/Value Chain Grant Category check only one) (Please Category 1: Technology, infrastructure support Grant Information and Market

Category 2: Agribusiness support Grant Number of HHs who would participate in the proposed project (Provide only the number of those HHs who would share cost/finance the proposed activities and share the benefits as well) Project cost (This includes grant amount requested from the project and the share of the grant applicant and beneficiaries/participants A. HHs by Gender (a) Male HH head: (b) Female HH head: B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Others Total project cost: Rs._______________22 (c) Grant amount Rs__________ requested from PACT,

(d) Beneficiary's share (cash and kind) _ Cash Rs.___________________________ Kind Rs.___________________________ Total Rs.___________________________

Section 2: Key problems and constraints/challenges in the proposed thematic area/value chain (Describe only those problems which your organization and beneficiaries have encountered for commercial production of commodity proposed by your organization). 2.1 Production related problems 1. 2. 2.2 Post-harvest and marketing related problems 1. 2.
21 22

Copy from Section 4 or same as section 4 Make sure that the amount you included here corresponds to the amount included in the financial proposal (Section 5). 40

PACT Code 3. Section 3. Technical Approach and Methodology (Your Describe how your organization would respond to above problems and challenges. technical approach and methodology)- (Maximum- two pages)23 Section 4. 4.1 SN Linkage with Value Chain Actor

Backward Linkage (Pre-Production) Activities With Whom (Name of Actor) Nature of Linkage

4.2 SN

Forward Linkage (Post Production) With Whom (Name of Actor) Nature of Linkage

Activities

Section 5: Output and Outcome

5.1

Outputs (Refers to the tangible goods, products or services produced by the inputs) Outputs Unit Quantity

Area coverage (required for crop Katha/Ropani/ related proposals such as cereal Bigha/Ha24 seeds, flower, fruits, coffee and so forth) Number of Participant Households (HHs) participating in the sub-project activities (direct beneficiaries)25 (Give the details of project beneficiaries (direct) which your organization will have achieved following PACT's assistance)26. A. HHs by Gender (a) Male HH head: (b) Female HH head: B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Others

23

Please do not allow others to copy this section. As this section is critically important and reflects your innovativeness and competitiveness, it is very possible that your proposal could be rejected because of other shortcomings and the organization which copied your proposal is selected. 24 Use only one unit whichever you feel comfortable 25 Please provide the actual number of HHs who would participate in the sub-project activities: share sub-project costs and benefits 26 Do not be ambitious and be specific. The performance of your sub-project will be assessed based on these figures later on. 41

PACT Code Number of animals reared per HH by type of animal/livestock (required for projects only meat, milk related type of Kg/Liter/Mt

Production (Annual) by commodity/value chain Productivity

Sale Construction of centre/storage house etc

MT/Ha Live weight, Kg/unit animal Litre/animal/la ctation period Rs per Ha Rs per HH collection Number

Repair and maintenance of rural KM roads

(Please note that all outputs mentioned above might not be applicable to your organization and proposal. You may add or delete outputs as you wish) 5.2 Outcome (Outcome refers to the medium term result(s) that the grant applicant aims to achieve in terms of benefits to target groups such as access to technical services, access to credits, employment, productivity increase etc.). Please note that outcomes mentioned below are simply examples presented to guide you to write the proposal. Some outcomes mentioned below might not be applicable to your organization and the proposal. Therefore, you will need to add/delete/revise outcomes given below based on your proposal). Filling in this table is very important for preparation of the log-frame and further analysis of benefit cost analysis and other financial details. Outcome Access to technical services Access to credit facilities Access to employment (Full time) Access to employment (part time) Access to market by type of markets (domestic, regional], international etc) Unit Quantity

42

PACT Code 6. Work plan (prepare work plan as given below). In this section, applicant should propose the main activities, their content and duration, phasing and interrelations, and milestones27. This table is very important to estimate cost of your proposal and determine key milestones and payment schedules. Example of work Plan
S N Activities Unit Quantity First three months First Year Second three months Third three months Fourth three months First three months Second Year Second three months Third three months Fourth three months

(Note: While preparing this table, please read carefully activities and norms for which the project provides the matching grant).

27

As this section is also important like the technical approach, do not allow others to copy this section as well. 43

PACT Code Part B.2: FINANCIAL PROPOSAL Section 1: Sub-Project cost by activities and Sources of Finance (Please refer to your work plan and include all those activities which you have included in the work plan) Table 1: Cost by Activities and Sources of Finance
SN A Capital cost 1.1 Infrastructure Development Items Cost Details Unit Quantity Rate per unit (Rs) Total GA
28

Source of Finance PACT Other organizations


29

Total

Sub-total 1.2 Equipment and Machinery

Sub-total Total Capital Cost 2 Operation Cost

28 29

GA- Grant Applicant Please mention here the name of the organization who have agreed to partially fund your proposal activities. You may increase the number of columns if more than one organizations will finance. Please do not include the name of other organizations unless you have received and included their commitment letters in this proposal. 44

PACT Code
Cost Details Unit Quantity Rate per unit (Rs) Total GA
28

SN

Items

Source of Finance PACT Other organizations


29

Total

2.3 Training 2.4 Interactions with key stakeholders 2.5 Monitoring and evaluation by specialists Sub-total 3 Public hearing and transparency (a) Hording Board (b) Public hearing (c) Video production (d) FM News Dissemination Sub-total 4 Management Remuneration for sub-project manager Remuneration for technician Sub-project management Sub-total B Total Operation Cost Overall sub-project cost

45

PACT Code Section 2. Estimation of cost of production (annual) S.N. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2 3 4 5 Description Production fertilizer etc) Unit inputs (seeds, Quantity Rate Amount

Labour Utility (Electricity, irrigation fee, land rent etc) Interest in credit (10% interest) Depreciation and amortization Total cost of production Per Ha cost Per HH cost

Section 3: Profit and Loss Estimation S.N. 1 2 3 4 5 Particular Sales Revenue Gross income per Ha Gross income per HH Net income per Ha (Annual) Net income per HH (Annual) Amount in Rs

46

PACT Code Annex: Curriculum Vitae Formats for CVs Name: Proposed Position: Sex: Nationality Full Address: Email: Fax: Age

A.

Educational qualifications: Degree Name of School/ Institution Year of completion

B.

Employment History Year (From .. To) Name of Organization Position Key roles and responsibilities

C.

Project Implementation Experience Year (From .. To) Name of Project and Position Name of Organization Key activities carried out

47

PACT Code

ANNEX 5: STANDARD FORMAT FOR FULL PROJECT PROPOSAL (THIRD CALL) CATEGORY 2
( For Grant Applicants applying for Category 2 Assistance: Agribusiness Development) Government of Nepal Ministry of Agriculture Development

Project for Agriculture Commercialization and Trade


Documents/evidences to be submitted SN 1 2 Evidences/Documents Required Registration certificate (renewed) Certificate (copy). Explanation

Financial Standing of the Grant Farmer Groups-Recent bank statement and Applicant: details on group saving and credit amount, if any. Cooperatives and Producers Association- Latest audit report (copy), VAT or PAN registration (copy), and recent bank statement. Private firms and entrepreneurs- (a) Latest audit report (copy), (b) VAT and PAN registration (copy), (c) recent tax clearance certificate (copy) and (d recent bank statement

Commitment letter from Grant A letter from the GA together with minutes of Applicant to bear its committed meeting in case of membership organizations like share farmer groups, market committees, cooperatives and producers association) and private firms with more than one shareholders), and a letter when the firm is owned by a single person. Cost-sharing agreements Agreement/MOU copy when such agreements between Grant Applicant, Service have been made. Recipients(beneficiaries) and other Collaborators/Partners such as VDCs and DDCs, if any Loan assurance, if received from Attach copies of letter issued by any financial institutions institutions, if any Award and certificates financial

Provide copies if the grant applicant has received any certificates or awards from international or national organization

46

PACT Code PART A: GENERAL Section 1: Details of Grant Applicant (GA) Organization

Name of the grant applicant organization Address of the GA (District, VDC/Municipality, Ward, Tole etc.) Telephone number of the GA Year of establishment/registration Current activities of the organization (Mention a maximum of 5 key activities)1. 2. 3. 4. 5. Contact/focal person30: Current position of the contact person within the GA Full address of the contact person (Permanent Address): Mailing address of the contact person, if different from the above permanent address Telephone Number (Landline) Fax: Email of the contact person:31 Type of the organization (Please check only one which is most appropriately describes your organization) Primary business of the GA organization (Please check only one which applies to your organization) 1. 2. 3. 4. 1. 2. 3. 4. 5. 6. 7. 8. Farmer group/committee Cooperative Producer Association Private Firm Producer Wholesaler Inputs supplier Processor Exporter Retailer Financial institution Others, (specify)

30

This person is the person submitting the application. When the person is changed by the organization for some unavoidable reasons within the organization, this should be notified to the PACT at the earliest. 31 PACT suggests the contact person to open an email address before submitting the application to the PACT in order that it could pass on important information to him/her at the earliest regarding the status of the application and its processing. 47

PACT Code Secondary business (Please check only 1. Producer one which applies to your organization) 2. Wholesaler 3. Inputs supplier 4. Processor 5. Exporter 6. Retailer 7. Financial institution 8. Others, (specify) Section 2: Experience of the grant applicant organization32

2.1 Experience
SN Name of the projects/ activities/programs carried out in the past and that are currently underway Period (From To ) Target group (beneficiaries) Client, if any Partners, If any Current status (Completed, dropped, on-going, ) Major activities

Note: You can include evidence (photographs), certificates, recommendations and so forth as evidences of the above in the Annex.

In addition to above table, you may further describe the experiences and achievements of your firm in words as well. 2.2: Baseline Information Provide the following information which describe the situation before PACT's assistance. Outputs Unit Quantity

Area coverage (required for crop related Katha/Ropani/Big proposals such as cereal seeds, flower, ha/Ha33 fruits, coffee and so forth) Number of Participant Households (HHs) (direct beneficiaries)34 A. HHs by Gender (c) Male HH head: (d) Female HH head: B. HHs by ethnicity (e) Dalit (f) Ethnic/Janajati (g) Brahmin/Chhetri etc (h) Others

Average number of animals reared per


32

Please do remember that your firm's experience is consistent with and matchess with the thematic area for which your organization has applied for PACT's partial funding. If your organization has been working in vegetable area, please do not submit proposal for milk processing. Likewise, no organization is allowed to apply for more than one thematic areas. More than one proposals from the same organization in different thematic areas will be rejected. 33 Use only one unit whichever you feel comfortable 34 Please provide the actual number of HHs who have been participating currently in the respective value chain or thematic area for which the GA has submitted the proposal. 48

PACT Code HH by livestock type (Required for meat, milk related projects only) Total Production by commodity35 (Annual) Productivity by commodity per Unit Area/Number/HH as applicable (Last season) Gross sale in Rs by commodity36 Sale by commodity

Kg/Liter/Mt Mt/Ha Live weight, Kg/unit animal Litre/animal/lactati on period/HH Rs per Ha Rs per HH

Section 3: Physical and Institutional Capacity 3.1 Physical Infrastructure Details (Owned) Particular Land Office Building Storage House Collection Center Any other (Specify) Number Size Area Remarks

3.2 Equipment, Machinery and Transport Facilities (Owned) Name Number Condition (Working/Not Working)

3.3 Staff (Working on salary/honorarium) Name Full Time Part-Time Number Male Female

3.4 Institutional linkages and coordination Name of the organization Type Benefits received by GR

35

Provide information for only those commodities/value chain for which your organization has applied for matching grant through PACT. 36 Received from average amount sold multipled by average sale price per unit. 49

PACT Code Section 4: Proposed project/proposal

Title of the project/proposal Objective of proposal/project the

Thematic Area/Value Chain Grant Category check only one) (Please Category 1: Technology, infrastructure support Grant Information and Market

Category 2: Agribusiness support Grant Implementing partners, if any Collaborators, if any Number of HHs who would participate in the proposed project (Provide only the number of those HHs who would share cost/finance the proposed activities and share the benefits as well) Project cost (This includes grant amount requested from the project and the share of the grant applicant and beneficiaries/participants A. HHs by Gender (a) Male HH head: (b) Female HH head: B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Others Total project cost: Rs._______________37 (a) Grant amount Rs__________ requested from PACT, (a)

(b) Beneficiary's share (cash and kind) _ Cash Rs.___________________________ Kind Rs.___________________________ Total Rs.___________________________

Section 5: Proposed staff (Sub-project manager and accountant) to facilitate the implementation of the proposal. In this section, applicant should fill in the following table and attach CVs in the annex in the given format. Proposed person must sign in the CV and commit to work subject to the approval of the proposal. Name of Staff Sub-project manager Accountant Area of Expertise Position Assigned Task Assigned

37

Make sure that the amount you included here corresponds to the amount included in the financial proposal (Section 5). 50

PACT Code Section 6: 6.1 Social/Environmental Screening

Location

Reconfirm the location of your project areas. If your project will be implemented in more than one location, you will need to provide information about each location. Name of the district where this proposal will be implemented: Name of the VDCso Information on Immediate Surroundings Yes No If yes, Remarks,

Particular Forest/wildlife/other resources Water bodies (River, pond, lakes) National Park/Protected Areas Drinking Water source Heritage site/temple/religious site Grave yard 6.2

Environment and social screening (Declaration)

Please reconfirm responses to each of the following queries as were reported earlier in the PCN. Questions 1. Does the proposed project intend to use or depend on any resources of national parks and protected areas or any critical aquatic and terrestrial habitat area? 2. Is the proposed project area located in high risk zone such as landslide prone area, steep slopes, highly degraded land in hills, riverside area susceptible to flooding, and in areas causing largescale soil erosion? 3. Will this project involve land clearance on slopes greater than 45 degree? 4. Will the proposed project affect the heritage site? 5. Will the proposed project involve in logging or causing any major environmental harm? 6. Is the proposed project likely to eliminate indigenous plant species of ecological significance? 7. Does the proposed project involve any activities which are likely to make irreversible adverse impact on indigenous communities, women and vulnerable groups? 8. Does the proposed project include any activities that promote or involve incidence of child labor? 9. Does the proposed project require some families losing their prime farm land and assets on the land and displacement of families due to construction of infrastructure 10. Will the proposed likely to use pesticides? Yes No

51

PACT Code 11. If pesticide use is likely, what are potential pesticides (is the pesticide listed in the negative list of Pesticides, i.e. not permissible for use in PACT (see PACT's Project Implementation Manual and Banned Pesticides for Nepal38 6.3 Have you prepared environmental code of practice? Check- (1) Yes (2) No If yes, (Attach as an annex). If your response is no, explain why your project does not need to prepare environmental code of practice?

6.4

Have you carried out initial environmental examination (IEE) or Environment Impact Assessment (EIA)? Check- (1) Yes (2) No If yes, (Attach as an annex). If your response is no, explain why your project does not need to undertake IEE/EIA?

6.5

Have you prepared environmental management plan? Check- (1) Yes (2) No If yes, (Attach as an annex). If your response is no, explain why your project does not need to prepare environmental management plan?

6.6

Have you prepared any environmental and social policy and framework for your project? If yes, name them and include in the annex.

38

Please ask the list of such pesticides from PACT or your DADO, if you have no idea about PACT's negative list of pesticides and banned pesticides. 52

PACT Code

PART B: TECHNICAL AND FINANCIAL PROPOSAL


Standard Format for Cooperatives, Private Firms and Producers Associations applying for the category 2 assistance or Agribusiness Development39 PART B.1: TECHNICAL PROPOSAL Section 1: Proposed project40

Title of the project/proposal Objectives of proposal/proposal Thematic Area/Value Chain Grant Category Number of HHs who would participate in the proposed project (Provide only the number of those HHs who would share cost/finance the proposed activities and share the benefits as well) Area coverage or quantity of products as applicable by commodity type Project cost (This includes grant amount requested from the project and the share of the grant applicant and beneficiaries/participants Total project cost: Rs._______________41 (e) Grant amount Rs__________ requested from PACT, Category 2: Agribusiness support Grant the

(f) Beneficiary's share (cash and kind) _ Cash Rs.___________________________ Kind Rs.___________________________ Total Rs.___________________________

39

This format will be used by cooperatives, producer associations and private firms applying for category 2 assistance. The maximum grant amount for this type of assistance is US$ 50,000 which will vary in accordance with the proposed activities, tentative costs of infrastructure construction/rehabilitation, cost of equipments and machineries and PACTs norms for allocation of the grant. 40 Copy from Section 4 of Part 1 41 Make sure that the amount you included here corresponds to the amount included in the financial proposal (Section 5). 53

PACT Code Section 2: Key problems and constraints/challenges in the proposed thematic area/value chain (Describe only those problems which your organization and beneficiaries have encountered for commercial production of commodity proposed by your organization). 2.1 Production related problems 1. 2. 3. 4. 2.2 Post-harvest and marketing related problems 1. 2. 3. 4. Section 3. Technical Approach and Methodology (Your Describe how your organization would respond to above problems and challenges. technical approach and methodology)- (Maximum- two pages)42 Section 4. 4.1 SN Linkage with Value Chain Actor

Backward Linkage (Pre-Production) Activities With Whom (Name of Actor) Nature of Linkage

4.2 SN

Forward Linkage (Post Production) Activities With Whom (Name of Actor) Nature of Linkage

5.

Output, Outcome and Impact after the completion of the project (

years)

5.1

Outputs (Refers to the tangible goods, products or services produced by the inputs) Outputs Unit Quantity

42

Please do not allow others to copy this section. As this section is critically important and reflects your innovativeness and competitiveness, it is very possible that your proposal could be rejected because of other shortcomings and the organization which copied your proposal is selected. 54

PACT Code Area coverage (required for crop Katha/Ropani/ related proposals such as cereal Bigha/Ha43 seeds, flower, fruits and coffee) Number of Participant Households (HHs) participating in the sub-project activities (direct beneficiaries)44 (Give the details of project beneficiaries (direct) which your organization will have achieved following PACT's assistance)45. Number of animals reared per HH by type of animal/livestock (required for projects only meat, milk related type of Kg/Liter/Mt A. HHs by Gender (a) Male HH head: (b) Female HH head: B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Others

Production (Annual) by commodity/value chain Productivity

Sale Construction of centre/storage house etc

MT/Ha Live weight, Kg/unit animal Litre/animal/la ctation period Rs per Ha Rs per HH collection Number

Repair and maintenance of rural KM roads (Please note that all outputs mentioned above might not be applicable to your organization and proposal. Therefore, feel free to add/delete/revise outputs based on your proposal). Filling in this table is very important for preparation of log-frame and further analysis of benefit cost analysis and other financial details). 5.2 Outcome (Outcome refers to the medium term result(s) that the grant applicant aims to achieve in terms of benefits to target groups such as access to technical services, access to credits, employment, productivity increase etc.). Please note that outcomes mentioned below are simply examples presented to guide you to write the proposal. Some outcomes mentioned below might not be applicable to your organization and the proposal. Therefore, you will need to add/delete/revise outcomes given below based on your proposal). Filling in
43 44

Use only one unit whichever you feel comfortable Please provide the actual number of HHs who would participate in the sub-project activities: share sub-project costs and benefits 45 Do not be ambitious and be specfic. The performance of your sub-project will be assessed based on these figures later on. 55

PACT Code this table is very important for preparation of the log-frame and further analysis of benefit cost analysis and other financial details. Outcome Access to technical services Access to credit facilities Access to employment (Full time) Access to employment (part time) Access to market by type of markets (domestic, regional], international etc) Unit Quantity

5.3

Impact (impact refers to key dimensions of wellbeing such as increase in income, food security, demonstration effect, etc.). Unit Quantity

Impact Annual increase in GAs gross Rs income Annual increase in GAs net Rs income Increase in employment level (a) Full employment (b) Partial employment Estimated income tax to be paid to Rs the government exchequer Estimated VAT likely to be made available to govt from the procurement of services and goods 6.

Work plan (prepare work plan as given below. In this section applicant should propose the main activities, their content and duration, phasing and interrelations, and milestones46. This table is very important to estimate cost of your proposal and determine key milestones and payment schedules. Example of work Plan

SN

Activities

Unit

Quantity First three months

First Year Second three months Third three months Fourth three months First three months

Second Year Second three months Third three months Fourth three months

46

As this section is also important like the technical approach, do not allow others to copy this section as well. 56

PACT Code

(Note: While preparing this table, please read carefully activities and norms for which the project provides the matching grant). 7. Log-frame Objectively Indicators Verifiable Means verifications of Risks assumptions and

Narrative summary Goal Outcome Outputs Activities

8.

Present your marketing plan for your outputs/products (where you would procure/sale your outputs/products and how you would ensure quality and reasonable price for your products. (maximum 1 page). Describe how your business will be sustained after the end of the project support if your proposal will be successful in receiving projects matching grant. (Brief discussions on different dimensions of sustainability such as institutional, financial technical and environmental sustainability)- (Maximum 1 page)

10

Provide your justifications for requesting PACT's matching grant. (In other words, describe, in your own words, why did you apply for PACT's matching grant, why do you think that your organization is one of the most competent organizations for receiving PACT's matching grant in the proposed thematic area/value chain? What changes your organization is likely to bring about in the neighboring areas? (Be concise, specific and limit to maximum of 1 page)47.

47

This section demonstrates your competitiveness, innovativeness and present capability to bring about changes. 57

PACT Code PART B.2: Financial Proposal 1. Sub-Project cost by activities and Sources of Finance (Please refer to your work plan and include all those activities which you have included in the work plan) Table 1: Cost by Activities and Sources of Finance
SN A Capital cost 1.1 Infrastructure Development Items Cost Details Unit Quantity Rate per unit (Rs) Total GA
48

Source of Finance PACT Other organizations


49

Total

Sub-total 1.2 Equipment and Machinery

Sub-total Total Capital Cost 2 Operation Cost

48 49

GA- Grant Applicant Please mention here the name of the organization who have agreed to partially fund your proposal activities. You may increase the number of columns if more than one organizations will finance. Please do not include the name of other organizations unless you have received and included their commitment letters in this proposal. 58

PACT Code
Cost Details Unit Quantity Rate per unit (Rs) Total GA
48

SN

Items

Source of Finance PACT Other organizations


49

Total

2.3 Training 2.4 Interactions with key stakeholders 2.5 Monitoring and evaluation by specialists Sub-total 3 Public hearing and transparency (a) Hording Board (b) Public hearing (c) Video production (d) FM News Dissemination Sub-total 4 Management Remuneration for sub-project manager Remuneration for technician Sub-project management Sub-total B Total Operation Cost Overall sub-project cost

59

PACT Code

2. Provide your annual expenditure plan as follows: Table 2: Annual Expenditure Plan
First Year (Rs) S N Activity Unit Quantity Rate (Rs) Total cost First Six months Quantit PAC y Cost T Second six months Quantit Cos PAC y t T Second Year (Rs) First Six months Quantit Cos PAC y t T Second six months Quantit Cos PAC y t T Total PAC T (Rs)

Costs associated with Outputs Output 1: (Please mention costs as per output mentioned in the Log Frame)

1.1

1.2

Output 2:

1.3

Output 3:

1.4

Output 4:

1.5

Output 5:

Sub-total (1) 2 2.1 Other costs Inputs

2.2

Capacity Development Training

60

PACT Code
First Year (Rs) S N Activity Unit Quantity Rate (Rs) Total cost First Six months Quantit PAC y Cost T Second six months Quantit Cos PAC y t T Second Year (Rs) First Six months Quantit Cos PAC y t T Second six months Quantit Cos PAC y t T Total PAC T (Rs)

Interactions

2.3

Monitoring and evaluation Public hearing and transparency (a) Hording Board (b) Public hearing (c) Video production/Dissemination in national TV (d) FM News Dissemination (e) Participation in national/regional fairs/exhibition

2.4

Management Remuneration for subproject manager Remuneration for technician Sub-project management Sub-total (2) Total sub-project cost (Total of Sub-total 1+2) Installment

(Note: If the duration of your proposal (project) is one and half year, there will be no need for you to fill in planned expenditure in the second six month of the second year column).

61

PACT Code 3 Provide Benefit Cost Ratio (BCR), Break Even Point (BEP), and FIRR (Financial Internal Rate of Return).

3.1 Estimation of cost Table 3: Estimation of Fixed Capital Investment and Depreciation
S.N. Description Unit (a) Quantity (b) Rate (c), Rs Amount (d) Rs Economic Life (yrs) (e) Depreciation (f)=(d)/(e) Rs

1 1.1 1.2 1.3 2

Civil works Shed Storage Culvert Machinery equipment Sprayers

and

3 4

Furniture and office equipment Others (Mention) Total

3.2 Estimation of Annual Operating Cost Table 4: Estimation of Annual Fixed Cost S.N. Particular Unit Quantity Rate Rs 1 2 Depreciation (From Table 3) Amortization Capacity Development (20% of respective total cost on annual basis) Public Awareness (20% of respective total cost on annual basis) 3 4 Management (Indirect Labour) Others Total Amount Rs

62

PACT Code Table 5: Estimation of Variable Cost


S.N. 1 Particulars Production inputs/raw materials: Unit Quantity Rate, Rs Amount, Rs

2 a b 3

Direct Labour Skilled Unskilled Utilities: Repair & Maintenance (2% of total of Table 3 from second year onwards) Interest on Short Term Loan Promotional Expenses @1% sales TOTAL VARIABLE COST:

4 5 6

Table 6: Estimation of Sales Revenue


S.N. Product Unit Quantity Rate, Rs Amount, Rs

Table 7: Estimation of Annual Cost of Production


S.N. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2 3 4 Description Raw material Unit Quantity Rate Amount

Direct labour Utility Repair and maintenance 63

PACT Code
5 6 7 Office Overhead Operating cost Financial cost Depreciation and amortization Total

Table 8: Profit and Loss Estimation


S.N. 1 2 3 4 5 6 7 8 9 Particular Sales Revenue Operating cost Gross Operating Profit Depreciation and amortization Profit Before Interest and Tax (PBIT) Financial cost Profit Before Tax Tax Net Profit Amount in Rs

Table 9: Cash Flow Projection


Year of operation Cash Inflow, R 1. Sales revenue (From row 1, Table 8) 2. Salvage value (Value of Capital items after deducting depreciation at the last year of cash flow projection) Total Inflow (A) Cash outflow 1. Capital expenditure (Total of fixed capital investment) 3. Operating cost(From row 2, Table 8) Total outflow (B) Net cash flow (A-B) 0 1 2 3 4 5

For long gestation period projects like tree crops, dairy etc., make cash flow projection for longer period say up to 10 years. 8. Financial analysis A. Benefit Cost Ratio (BCR) From Cash Flow Projection table (Using 12% discount rate): BCR = PV of Benefit/ PV of Cost = B. Financial Internal Rate of Return (FIRR) From Cash Flow Projection table using standard method: IRR = %

C. Break Even Point (BEP) From Tables 4, 5 and 6: BEP= (Fixed Cost)/(Gross Profit Margin) = % Gross Profit Margin = Sales Variable cost
64

PACT Code Annex: Curriculum Vitae Formats for CVs Name: Proposed Position: Sex: Nationality Full Address: Email: Fax: Age

D.

Educational qualifications: Degree Name of School/ Institution Year of completion

E.

Employment History Year (From .. To) Name of Organization Position Key roles and responsibilities

F.

Project Implementation Experience Year (From .. To) Name of Project and Position Name of Organization Key activities carried out

65

PACT Code

ANNEX 6: NORMS AND CRITERIA FOR PACT'S MATCHING GRANT ASSISTANCE BY GRANT CATEGORY
A. Grant Category 1 (Technology, Information and Market Infrastructure)- Max US$ 35,000.00 or NRs 30,45,000.00 (exchange rate @ NRs 87.00 per US$) Goods and Services Unit Sub-project's estimated cost PACT's share/grant 1 Capital costs 1.1 Physical infrastructure development (a) Construction of store house (b) Construction of go-down (storage) (c) Construction/rehabilitation of irrigation system (farmer managed) (d) Construction of ponds for irrigation (e) Construction of cattle/poultry sheds (f) Construction of fish ponds Sq ft GA's share Requirements/Remarks

SN

Sq M Sq M Km Sq M Sq M Sq M M

Maximum 70 percent of the total costs but not exceeding US$ 10,000.00 or NRs 8,70,000 as of the current exchange rate

Minimum 30% of the total estimated cost

Needs to submit detail cost estimate during the grant negotiations if the FPP will be approved after technical and financial evaluation.

Please note that there is no need to submit the estimate in the FPP but you may keep it safely with your organization if you have prepared already.

1.2 Equipment and machineries All types of equipments whose current market price is above Number Maximum 50% of the total cost whose Minimum 50% of the total cost

Kind contribution acceptable

Needs to submit price quotation (most recent) during the grant negotiations if the FPP will be approved after

66

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant Rs.1,000 per unit. market price per unit is Rs. 1000 or above. GA's share technical and financial evaluation. Please note that there is no need to submit the quotation in the FPP but you may keep it safely with your organization if you have prepared already. Requirements/Remarks

Please note that the project will not fund any equipments or /machineries which have not been mentioned in the FPP in terms of type, quantity and capacity. Therefore, GA is expected to be very specific and submit demand based on their needs. Likewise, the market price of the equipment less than 1,000 should be shouldered by the GA . PACT's matching grant is not available for small equipments with market price less than Rs.1000.00 per unit.

1.3 Vehicles for transportation

Number

Not available

100% of the total cost

2 2.1

Operational costs Seeds and Breeds

67

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant (a) Seeds Mt/Kg Maximum 25% of the total cost GA's share Minimum 75% of the total cost Government rate and available only for those varieties which have been released or approved by National Seed Board Requirements/Remarks

(b) Seedlings

Number

Not available

100% of the total cost Minimum 75% of the total cost 100% of the total cost Government rate

(c) Fruit saplings

Number

Maximum 25% of the total cost Not available

(d) Procurement of live animals

Number

2.2

Chemicals and fertilizers (a) Chemical fertilizers Mt Not available 100% of the total cost 100% of the total cost Minimum 50% of the total cost Minimum 50% of the cost per animal. 100% of the Submit the cost estimate for the production of vermin-compost Government rate

(b) Pesticides

Lit or Kg

Not available for any type of chemicals Maximum 50% of the total cost Maximum 50% of the cost per animal.

(c) Production of vermi-compost

Mt

2.3

Artificial insemination

Number

2.4

Daily Labour

Number

Not available

68

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant GA's share total cost 2.5 Institutional development (a) Group formation and mobilization 2.6 Training and capacity development (a) On-the spot (sub-project site) training No of trainees Max. 70% of the cost Min 30 % of the Need to include training details and cost total cost estimate specifying the subject matter, duration of the training, resource person and so forth in the FPP Min 30 % of the Need to include training details and cost total cost estimate specifying the subject matter, duration of the training, training venue and so forth in the FPP Min 30 % of the Need to include details and cost estimate total cost specifying the places to visit with purpose, number of participants, duration, and so forth in the FPP Voluntary Need to include details and cost estimate specifying the places to visit with purpose, number of participants, duration, Number Not available Not available Requirements/Remarks

(b) Training in government and private farm (in-country)

No of trainees

Max. 70% of the cost

(c) Observation (Study Tour)in-country

Number

Max. 70% of the total cost

(d) Observation tour- Abroad

Number

Not available

69

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant GA's share and so forth in the FP 2.7 Procurement of raw materials for processing Chemicals for processing Mt Not available 100% of the total cost 100% of the total cost 100% of the cost 100% of the total cost Requirements/Remarks

2.8

Kg/Lt

Not available

2.9

Veterinary medicines

Not available

2.10 Packing materials such as sacks and polythene bags 2.11 Remuneration and salary (a) Sub-project manager

Number

Not available

Person month Person month Person days

Not available

100% of the total cost 100% of the total cost Any amount above available beyond PACT's grant amount

(b) Accountant

Not available

(c) Short-term technical service (intermittent)

Maximum 180 days when the duration of the sub-project is 2 years @ Rs 500 per days

2.12 Transparency and reporting

70

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant (a) Installation of hording board Number Maximum 2 per subproject @ Rs 5000 per hording board GA's share Any amount above Rs 5000 per board and increase in number Any amount above Rs 2500 per broadcast and increase in number Any amount above Rs 10,000.00 per fair Any amount above Rs 30,000.00 per fair Any amount above Rs 5000 per hearing and increase in number Needs to follow PACT's instruction/guidelines Requirements/Remarks

(b) Dissemination through local FM Radios

Number of Maximum 4 per subbroadcasting project @ Rs 2500 per broadcast

Needs to follow PACT's instruction/guidelines

(c) Participation in local/regional fair

Number

Maximum 2 per subproject Rs 10,000 per fair

(d) Participation in National Fair held as per PACT's programme

Number

Maximum 2 per subproject and Rs. 30,000 per fair

Needs to follow PACT's instruction/guidelines

(e) Public hearing

Number

Maximum 3 per subproject @ Rs 5000 per public hearing

Needs to follow PACT's instruction/guidelines

Distribution of three hearings will be as follows: First just after signing of grant

71

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant GA's share agreement with PACT, second before release of the third installment and the last after the completion of the subproject but before submitting the request for the final grant settlement. (f) Dissemination of sub-project activities through national TVs Number Maximum 2 per subproject @ Rs 50,000 per broadcast Any amount above Rs 50,000.00 per broadcast 100% of the total cost Needs to follow PACT's instruction/guidelines Requirements/Remarks

(g) Reporting

Number

Not available

Needs to follow PACT's instruction/guidelines (At least 6 reports will need to be submitted during the subproject period) Not allowed to account GA's share Not allowed to account GA's share

2.13 Leasing land or equipment 2.14 Repair and maintenance of physical infrastructure and equipments 2.15 Seed money/revolving fund to be distributed among the beneficiaries

Not available Not available

Voluntary Voluntary

Not available

Voluntary

Not allowed to account GA's share

72

PACT Code

B.

Grant Category 2 (Agribusiness Development)- Max US$ 50,000.00 or NRs 43,50,000.00 (exchange rate @ NRs 87.00 per US$)

SN

Goods and Services

Unit

Sub-project's estimated cost PACT's share/grant GA's share

Requirements

Capital costs 1.1 Physical infrastructure development (a) Construction of collection centre (b) Construction of store house (c) Construction/rehabilitation of irrigation system (farmer managed) (d) Construction of ponds for irrigation (e) Construction of cattle/poultry sheds (f) Construction of fish ponds (g) Fencing 1.2 Equipment and machineries All types of equipments Number Maximum 50% of the total cost whose market 73 Minimum 50% of the total cost Needs to submit price quotation (most recent) during the grant negotiations if the FPP will be approved after technical and financial evaluation. Sq ft

Sq M Sq M Km

Maximum 50 percent of the total costs

Minimum 50% of the total cost

Sq M Sq M Sq M M

Needs to submit detail cost estimate during the grant negotiations if the FPP will be approved after technical and financial evaluation. Please note that there is no need to submit the estimate in the FPP but you may keep it safely with your organization if you have prepared already. Cash contribution

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant price per unit is Rs. 1000 or above. GA's share Requirements

1.3 Vehicles for transportation of goods

Number

Maximum 30% of the total cost

Minimum 70% of the total cost

Please note that there is no need to submit the quotation in the FPP but you may keep it safely with your organization if you have prepared already. lease note that the project will not fund any equipments or /machineries which have not been mentioned in the FPP in terms of type, quantity and capacity. Therefore, GA is expected to be very specific and submit demand based on their needs. Likewise, the market price of the equipment less than 1,000 should be shouldered by the GA . PACT's matching grant is not available for small equipments with market price less than Rs.1000.00 per unit. Needs to submit price quotation (most recent) during the grant negotiations if the FPP will be approved after technical and financial evaluation. Please note that there is no need to submit the quotation in the FPP but you may keep it safely with your organization if you have prepared already. Please note that the project will not fund any transportation vehicle not mentioned in the FPP in terms of type,

74

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant GA's share Requirements

quantity and capacity. 2 2.1 Operational costs Seeds and Breeds (a) Seeds Mt/Kg Not available 100% of the total cost Government rate and available only for those varieties which have been released or approved by National Seed Board

(b) Seedlings

Number

Not available

100% of the total cost At least 50% of the total cost 100% of the total cost Government rate

(c) Fruit saplings

Number

Maximum 50% of the total cost Not available

(d) Procurement of live animals

Number

2.2

Chemicals and fertilizers (a) Chemical fertilizers Mt Not available 100% of the total cost 100% of the total cost

(b) Pesticides

Lit or Kg

Not available for any type of chemicals Not available

(c) Production of vermi-compost

Mt

100% of the total

75

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant GA's share Requirements

cost 2.3 2.4 Artificial insemination Daily Labour Number Number Not available Not available Not available 100% of the total cost Government rate

2.5

Institutional development (a) Group formation and mobilization Number Not available Not available

2.6

Training and capacity development (a) On-the spot (sub-project site) training for employees Number of training Not available 100 percent of total cost Need to include training details and cost estimate specifying the subject matter, duration of the training, training venue and so forth in the FPP Need to include training details and cost estimate specifying the subject matter, duration of the training, training venue and so forth in the FPP Need to include details and cost estimate specifying the places to visit with purpose, number of participants, duration,

(b) Training in government and private farm (in-country)

No of trainees

Max. 50% of the cost

Min 50 % of the total cost

(c) Observation (Study Tour)-incountry

Number

Max. 50% of the total cost

Min 50 % of the total cost

76

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant GA's share Requirements

and so forth in the FPP (d) Observation tour- Abroad Number Max. 50% of the total cost Min 50 % of the total cost Need to include details and cost estimate specifying the places to visit with purpose, number of participants, duration, and so forth in the FP Need to include details and cost estimate of the study specifying the objectives of the study, resource persons, scope of the study and direct benefits to the GA

(e) Small research and studies (Market related)

Number

Max 2 studies per sub-project, Rs. 75,000 per subproject

Any amount above Rs 75000 per study and increase in number 100% of the total cost 100% of the total cost 100% of the total cost 100% of the total cost

2.7

Procurement of raw materials for processing Chemicals for processing

Mt

Not available

2.8

Kg/Lt

Not available

2.9

Veterinary medicines

Not available

2.10 Packing materials such as sacks and polythene bags 2.11 Remuneration and salary (a) Sub-project manager

Number

Not available

Person

Not available 77

100% of the total

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant month (b) Accountant Person month Person days Not available GA's share Requirements

cost 100% of the total cost Above 60 daysvoluntary

(c) Short-term technical service (intermittent)- Professional

Maximum 60 days when the duration of the sub-project is 2 years @ Rs 1500 per days

2.12 Transparency and reporting (a) Installation of hording board Number Maximum 2 per sub-project @ Rs 5000 per hording board Any amount above Rs 5000 per board and increase in number Any amount above Rs 2500 per broadcast and increase in number Any amount above Rs Needs to follow PACT's instruction/guidelines

(b) Dissemination through local FM Radios

Number of Maximum 4 per broadcasting sub-project @ Rs 2500 per broadcast

Needs to follow PACT's instruction/guidelines

(c) Participation in local/regional fair

Number

Maximum 2 per sub-project Rs

78

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant 10,000 per fair (d) Participation in National Fair held as per PACT's programme Number Maximum 2 per sub-project and Rs. 30,000 per fair under 50:50 cost sharing arrangement Maximum 3 per sub-project @ Rs 5000 per public hearing GA's share Requirements

10,000.00 per fair Any amount above Rs 30,000.00 per fair under 50:50 cost sharing arrangement Any amount above Rs 5000 per hearing and increase in number Needs to follow PACT's instruction/guidelines

(e) Public hearing

Number

Needs to follow PACT's instruction/guidelines

Distribution of three hearings will be as follows: First just after signing of grant agreement with PACT, second before release of the third installment and the last after the completion of the subproject but before submitting the request for the final grant settlement. Needs to follow PACT's instruction/guidelines

(f) Dissemination of sub-project activities through national TVs

Number

Maximum 2 per sub-project @ Rs 50,000 per broadcast and not exceeding 50% of

Any amount above Rs 50,000.00 per broadcast under 50:50 cost

79

PACT Code SN Goods and Services Unit Sub-project's estimated cost PACT's share/grant the total cost GA's share Requirements

sharing arrangement 100% of the total cost Needs to follow PACT's instruction/guidelines (At least 6 reports will need to be submitted during the subproject period) Not allowed to account share

(h) Reporting

Number

Not available

2.13 Leasing land or equipment

Not available

Voluntary

2.14 Repair and maintenance of physical infrastructure and equipments 2.15 Seed money/revolving fund to be distributed among the beneficiaries

Not available

Voluntary

Not allowed to account share

Not available

Not available

Not allowed to account share

80