Sustainable Entrepreneurship and Food Security Facility (FDOV)

Appendix 1

Project Plan

Sustainable Entrepreneurship and Food Security Facility (FDOV)

Call 2

A Public Private Partnership Fund

To be used for the application procedure

2014

General instruction Appendix 1 Project plan:
-  The green shaded boxes contain explanatory information on specific sections of the project plan. Please delete these boxes from the project plan, leaving your own text.
-  Bold text indicate requirements in the FDOV Policy Framework; please note that the Framework is the leading document.
-  All documents, including the project plan must be written in English.
-  The format of the project plan is mandatory.
-  The project plan should not exceed 35 pages, excluding the appendices.

1 Public summary

-  Please fill out the summary page below. This information can be made publicly available by RVO.nl.
-  Include project objectives, intervention strategy and Results (output/outcome), as well as a short description of the partnership.
Project name:
Applicant:
Partners:
Project location:
Theme(s):
Key problem to be addressed
Project goal(s):
Summary project intervention (max 300 words):

2 Project

The project should be described using the analytical model as described in the Policy rules and depicted below. The following paragraphs follows this structure.

2.1 Context and problem analysis

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Describe the overall problem the partners wish to address with the project (impact/outcome level) and support with data where possible:
-  Describe the context of the project:
o  The general economic situation and constraints in the project area;
o  The market situation related to the proposed intervention
o  Political-economic situation and developments that may affect your project;
o  Institutional setting and regulations that may affect your project;
o  Climate and environmental aspects affecting your project;
o  Social developments and vulnerable groups related to your project
-  Define the problem the project will address:
o  The magnitude and scope of the problem.
o  Describe which population groups are affected and to what extent.
o  Describe how the local population, including most vulnerable groups, are affected by the problem.
o  The consequences if the problem is not addressed properly.
o  The geographical area the project focusses on.
-  What has already been undertaken to solve the problem?
-  Why is the problem until now not successfully solved?
-  Describe the relevant stakeholders, their interests and their role in creating or solving the problem.
Required:
-  The partners should show a sound understanding of the context, the problem, and the underlying causes.
-  The problem relates to at least one of the sub-themes under the theme food security and/or the theme private sector development indicated for this call.
-  The problem should be described as a negative situation on how the target group is affected, for example: x number of people suffer from malnutrition related to poverty and access to affordable (nutritious) food. Do not solely describe the problem as the absence of a solution (e.g. no retail outlets, no production facilities, lack of knowledge).
-  The analysis shows a sound understanding of related sustainability issues and issues related to vulnerable groups. See the annex on FIETS-criteria for relevant issues to consider.

2.2 Project objective

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-  Describe in a few sentences the overall objective of the project. Include what long-term outcome and impact the project is aiming at. Refer to the overarching objective of FDOV and its (sub) themes.
Required:
-  The project should stimulate sustainable and inclusive economic development through public private partnership by improving food security or private sector development. This relates for instance to job creation (direct and indirect), economic growth, self-reliance, value chain development, nutrition, inclusive business.
-  The activities must be described as an integrated project, not as a programme.

2.3 Intervention strategy

The intervention strategy includes the theory of change (par 2.3.1) intervention logic (par 2.3.2), project output and outcome (par 2.3.3), activities on the enabling environment (par 2.3.4) and business case (par 2.3.5). General introduction:
The project should be based on a sound theory of change and intervention logic, following from the project context and problem analysis. The intervention logic should be structured as a result chain. The project proposal should have an economic basis and results also be sufficiently sustainable to be eligible for funding. Sustainability will be assessed by the FIETS criteria (Financial, Institutional, Environmental, Technical and Social sustainability) and include ICSR requirements. Sustainability elements should pay due attention to cross-cutting themes: gender (women), good governance, climate and environment. A ‘Checklist Sustainability, FIETS and crosscutting themes’ is available at http://english.rvo.nl/fdov.
Please note that information on the financial sustainability and economic viability are part of paragraph 2.6 Justification for FDOV subsidy.
Required:
-  The project should elaborate on the economic development of the target group and other economic actors taking their demands and requirements into account (qualitative and quantitative) and should be logically derived from the theory of change.
-  The intervention strategy should build on local opportunities and the involvement and commitment of local parties (public, private, NGO and/or knowledge institution).
-  The technical and social achievability of the intervention should be demonstrated.
-  The project results should be sufficiently sustainable. Sustainability is assessed based on the FIETS criteria, ICSR requirements with due attention to crosscutting themes. Insufficient sustainable proposals will be rejected.
-  Besides the development of business case(s), the project should contribute to improving the pre-conditions necessary for scaling of cases. In particular policy and legislative aspects in support of the sustainable development of entrepreneurship in the (sub)sector or chain, and a focus on competence and capacity development of the target group(s), should be integrated in the project.
-  The project should introduce an innovative approach for solving the identified problem(s).
-  The project should explicit the benefits of the project for women and how women are involved in achieving the project results. In case there is no explicit role for women as actor in the project, a justification should be given.
-  Preferably the project should strengthen the position of SME’s.
-  The project must be implemented in one of the countries of the country list.
-  In case the project intervention includes more than one country, the economic necessity for the cross border activities should be clearly demonstrated.
-  The maximum project period can be seven years.
- The project does not involve initiatives aimed wholly or partly proselytization

2.3.1. Theory of Change

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The theory of change describes qualitatively what changes are required to be able to achieve the project objectives and impacts. This includes both changes that the project will address actively as well as (assumed) changes outside the direct influence or scope of the project. The necessary change processes are mapped and include both early and intermediate steps. The causal links between the early and intermediate steps is explained, and underlying assumptions are given. Provide the theory of change underlying the intervention strategy of the project.
-  Describe what changes are required;
-  Describe what changes will be induced by the project and what assumptions on other needed changes are being made;
-  Describe which (economic) changes are to be sustained after the project ends
-  Map the drivers and processes including both early and intermediate steps; describe the causal links between them;
-  if available, substantiate the theory of change with appropriate references to external sources (reports, studies etc.);
-  demonstrate that the Theory of Change fits the context and problem analysis, and the project objective.
Required:
-  The Theory of change needs to align well with the context and problem analysis and the impacts (sustainable inclusive economic growth) the project is aiming at.
-  The theory of change forms the framework underlying the intervention logic.

2.3.2 Intervention logic

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The intervention logic describes what interventions, based on the Theory of Change the project will implemented.
-  Summarise (max 500 words) the intervention logic of the project. Fill out and present the result chain in Appendix 2, sheet 2 ‘Result chain’. Please replace the example result chain below with the result chain of your project.
-  Indicate which part of the project is based on a business case. The business case can be elaborated on in paragraph 2.3.5 ‘Business case’.
-  Indicate whether (part of) the project is aiming to improve the Enabling environment’ (e.g. behavioural change, capacity building, organisational strengthening, institutional change, law and regulations). Please elaborate on this in paragraph 2.3.4 Enabling environment.
-  Provide a result chain for the project in appendix 2. sheet ‘Result Chain’. Replace the below example of the result chain with the filled out result chain of your project in Appendix 2.
Note that a more detailed description on project output/outcome can be given in the next paragraph 2.3.3.
For the OECD-DAC (2012) definitions of Input, Activities, Output, Outcome and Impact see below or at : http://ec.europa.eu/europeaid/evaluation/methodology/glossary/glo_en.htm
Inputs are the financial, human, material, technological and information resources used for the development intervention.
Activities are the actions taken or work performed through which inputs, such as funds, technical assistance and other types of resources are mobilised to produce specific outputs.
Outputs are the products and services which result from the completion of activities within a development intervention.
Outcomes are the intended or achieved short-term or medium term effects of an intervention’s outputs, usually requiring the collective effort of partners. Outcomes represent changes in development conditions which occur between the completion of outputs and the achievement of impact.
Impact is the positive and negative long-term effects on identifiable population groups produced by a development intervention, directly or indirectly, intended or unintended. These effects can be economic, socio-cultural, institutional, environmental, and technological or of other types.
Result is the initial impact of an intervention, consisting of (series of) outputs and outcomes, (intended or unintended, positive and/or negative effects) of a development intervention.
Partners are committed to the objectives, activities and results of the project. The Results framework elaborated in App 1 and 2 will be an integral part of the obligations in the FDOV grant Administrative Decision (for more on this see the note on Appendix 2 in par. 2.3.3)
Required:
-  The intervention logic is based on the Theory of Change.
-  It is substantiated how the intervention logic suffices to achieve the project objective.
-  The project result chain should be clearly linked to the problem analysis, project objectives, the theory of change, and the intervention logic. It shows how input and activities result in the desired output, outcome and impact.
-  Quantify the output, outcome and impact where possible.

Figure: Example Result Chain

2.3.3 Output and outcome

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Elaborate in more detail on the concrete project output and outcome, referring to the provided result chain.
-  Relate the output and outcome to the target group beneficiaries, i.e. quantify as much as possible the project output and outcome per targeted beneficiaries. (households/farmers/users). If applicable, break down by type of target group. For instance, as outcome of the project, in 2019 x vulnerable households have gained access to improved income and nutritious food. Indicate the incremental benefits of the project compared to the situation without the project. Provide references for the presented data. Include sustainability (FIETS), ICSR requirements, with due attention to crosscutting themes, where applicable, in the output and outcome.
-  Fill out Appendix 2, sheets Result 1 to Result 10 (or less if fewer Results are identified). Refer to the sheet ‘Instructions’ of Appendix 2 how to do this. It is not required to copy these sheets into this project plan. If an explanatory text is required, this can be done in in this paragraph. Appendix 2 is an important part of the project appraisal and will serve as the basis for the Administrative decision if FDOV subsidy is granted.
Note on Appendix 2:
If a project receives a FDOV subsidy, the PPP commits itself to achieving the project deliverables. A breakdown of the project budget according to results should be provided.
Required:
-  The project output and outcome should be presented in a SMART manner.
-  The project output and outcome should be linked to the intervention logic as summarised in the result chain.
-  The project should lead to concrete, tangible results. Do note that best value for money (the project budget in relation to the project Results) will be assessed.
-  The defined Results and Sub-results presented in Appendix 2 will form the basis of the Administrative decision (‘beschikking’).
-  Integrate the sustainability parameters in the result framework, and link these to the FIETS criteria, ICSR requirements, with due attention to crosscutting themes.

2.3.4 Enabling environment

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Please elaborate on the project activities aiming at improvement of the Enabling environment (e.g. behavioural change, capacity building, organisational strengthening, institutional change, laws and regulation) by addressing the topics below.
-  How do the activities relate to the Theory of Change, the Intervention logic, and the FDOV sub-themes.
-  What are the specific objectives and what activities are necessary to achieve the desired outcomes and impact on the enabling environment? Please note that the knowledge transfer and capacity development programme can be elaborated on in paragraph 4.1.2.
-  Substantiate the effectiveness of the strategy. If possible provide references to similar approaches.
-  Does the project connect to other initiatives on improving the enabling environment? If so, please elaborate.
-  Which organisations/stakeholders are relevant and how are they involved?
Required:
-  A project must be based on achievable activities and results for improvement of the enabling environment.
-  For interventions aiming to improve the enabling environment, the effect of this should be social and financial sustainable.
-  The improvements of the enabling environment should contribute to the projects objectives and one or more of the FDOV sub-themes.

2.3.5 Business case

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Please elaborate on the business case in this paragraph and fill out ‘Appendix 3, sheet 6 Project Cash flow’. Additional information on the business case(s) may be included as Appendix 9.
Regarding the business case, please pay attention to the following topics:
-  What is the business case?
-  How do the business activities relate to the Theory of Change, the Intervention logic, and the FDOV sub-themes?
-  Describe the market(s) the project wishes to enter or improve. Pay attention to the following in the description:
o  What are the value propositions, what product(s) or service(s) will be sold?
o  What competing substitutes for the product/service are available on the market?
o  What is the size of this market in terms of supply and demand?
o  How has the market evolved over the past few years with regard to the above? What tendencies are expected?
o  Who will be the customers, what customer segments, what type of customer relation is proposed?
o  Who are the indispensable suppliers in the chain?
o  What resources are indispensable to run the business and who are the main suppliers
o  At what price will the product(s) or service(s) be sold? What are the current market prices and how are they expected to evolve in the coming years?
o  What will be the position of the project in the business value chain?
-  What does the production/service process look like in terms of the allocation of resources, products/services and logistical aspects? This may be illustrated by a flowchart and added to the project plan as Appendix 9 (flowchart is optional).
-  What are the costs for operation and maintenance required to produce a product or provide a service? These costs should be included in the cash flow analysis.
-  Who are the key partners in the business?
-  What are social and environmental costs and benefits of the proposed business?
Required:
-  A project must be based on a detailed and sound business case, contributing to the project’s objectives and FDOV (sub) themes.
-  The private sector role logically is involved in the business case.
-  The feasibility and financial sustainability should be demonstrated.
-  The FDOV supported business case should not lead to market distortion.

2.4 Policy relevance

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