Program to Support Agribusinesses in Kandahar, Helmand, Uruzgan and Zabul Provinces

Program to Support Agribusinesses in Kandahar, Helmand, Uruzgan and Zabul Provinces

Annual Program Statement (APS) No. APS-VC-2017-004

Issue Date: January 3rd, 2017

Dear Applicant:

The USAID-funded Regional Agriculture Development Program-South (RADP-S) implemented by Chemonics International (Chemonics) is seeking concept papers to implementactivitiesfrom agribusiness companies working in the fruit, vegetable, wheat, and livestock input supply sectors.By supporting these company-led activities RADP-S hopes to achieve the following objectives:

1. Build/expand agribusiness companies capacity to provide products, services, support and market access to producers they buy from (for buyers)
2. Build/expand agribusiness companies capacity to: a) expand distribution networks to promote greater access to quality agricultural inputs; b) provide better information on the use of inputs; c) provide training to producers, and; d) offer a greater variety of quality inputs adapted to producer needs (for input supply companies)
3. Improve agribusiness companies competitiveness and expand their markets
4. Expand the number of producers they buy from or sell to
5. Promote mutually beneficial (win-win) relationships between market actors in the targeted agribusiness industries (See Annex A for a project description).

Expected Outcome:

1. Increase in sales revenue

2. Increase in overall Profitability

3. Adoption of improved business skills and practices

4. Application of new technology by the grantee

The project will hold Pre-application workshops on a quarterly basisat the RADP-S office at AMTEX Village & Business Park located across from the main entry gate to the Kandahar International Airport along Spin Boldak Highway for agribusinesses working in the following sectors:TreeCrops, Vegetables, Grapes, Livestock,and Wheat. Additional pre-application workshops will be held in Helmand, Zabul, Uruzgan, and Kabul bi-annually or in accordance with local demand.

These workshops will allow eligible and interested applicants the chance to ask questions about the APS and receive guidance on how to complete the concept paper application. Details about the date and the time of the pre-application workshop will be given to interested applicants upon request. Interested applicants that meet the eligibility requirements defined below and would like to attend this workshop must confirm their attendance by sending the participant’s name, contact details and the company’s name to . Only one person may attend from each company.If you are unable to attend but interested please contact us via the email.

Project and Chemonics employees may not ask for, and applicants are prohibited from offering, any money, fee, commission, credit, gift, gratuity, thing of value, or compensation to obtain or reward improper favorable treatment regarding this solicitation. Any improper request from a project employee should be reported to Director of Finance, Procurement and Subcontracts at .

Applications for this APS will be accepted on a rolling basis.

The following Annexes are included with this APS*:

• Annex A – Background & Program Description
• Annex B – Evaluation Criteria
• Annex C –Concept Paper Application Template, including, RADP-S Checklist (C.1), implementation plan (C.2) and Budget Template (C.3)
• Annex D – List of Ineligible Expenses
• Annex E – Authority and Governing Regulations
• Annex F –Illustrative company activitiesin the tree fruit, wheat, and livestock input supply sectors
• Annex G – Certifications

* You are only required to submit the information in Annexes C in the first stage and if your application is approved by RADP-S then you will be asked to submit the information required in AnnexG.

ILLUSTRATIVE AREAS FOR SUPPORT:

Proposed activities shall contribute to the company’s ability to improve, expand or develop the products, services, support and/or market access they provide to producers. Examples of activities that could be supported include, but are not limited to,producer training/extension activities for producers in order to improve production; introduction of new or improved tools/equipment for producers;development of promotional materials, catalogues, web pages; organization of a coalition of market actors to lobby for specific government policies that will support the growth in the targeted agribusiness sectors (trade agreements, implementation of existing rules, etc.); andorganizing demonstrations to expose producers to new varieties and/or improved use of agricultural inputs. More detailed examples for each targeted sector are included in Annex F.

RADP-S will cover up to 50% of applicant grant costs during the first grant application with the rest being covered by the applicant as the grantee’s cost-share. RADP-S will cover up to 40% on the second successful grant application, and 30% on the third successful grant application.

Each grant proposal must name 3 references with which the grant applicant’s enterprise is engaged in commercial transactions.

CONCEPT PAPER APPLICATION

Instructions and a template to be utilized when developing the concept paper and draft budget are provided in Annex C. Applicants may submit their applications within this timeframe for funding through December2017and applications will be reviewed on a rolling basis. Concept Papers will be accepted in English and must be no more than five pages in length (not including the cover page, budget, and implementation plan). Applicants shall present their technical concept paper and budget in the formats provided and shall follow the instructions and guidelines listed in theannexes. All activity costs must be within the normal operating practices of the Applicant and in accordance with its policies and procedures. The application must be signed by an authorized agent of the Applicant organization.Selected Applicants should expect to participate in activity planning sessions with RADP-S in order to refine and improve their proposed initiatives.

Concept paper, budget, and questions concerning this solicitation must be submitted electronically to the attention of RADP-S Grants Manager at referencing APS-VC-2017-004 in the subject.Applicants that submit a concept paper that meets or exceeds the evaluation criteria will be notified of next steps in the application process. See evaluation criteria in Annex B.

AWARD INFORMATION

The RADP-S program will provide technical support as needed to build the capacity of successful applicants to implement their proposed initiatives. The type of the agreement will be determined during the negotiation process.All financial support funds will be negotiated, denominated and funded in Afghanistan Afghani (AFN) and all costs funded must be allowable, allocable and reasonable. Successful recipients will be required to provide negotiated counterpart funding for the agreed upon activities. Applications must be supported by a detailed and realistic budget as described inAnnex C.

Issuance of this APS and assistance with concept paper application development do not constitute an award or commitment on the part of RADP-S, nor does it commit RADP-S to pay for costs incurred in the preparation and submission of an application.Further, RADP-S reserves the right to accept or reject any or all applications received.

ELIGIBILITY

Eligible applicants for this program must:

• Have a fully developed and marketable product and have been in operation for at least the past two years.
• Organizations must be engaged in commercial activity related to Wheat, Livestock, Vegetables, Tree Crops, or grapes in the geographic area of Helmand, Kandahar, Uruzgan, or Zabul. Companies can have offices in other geographic areas so long as commercial activity can be verified and they are willing to travel to RADP-S office locations to
• Be able to demonstrate commercial (buying or selling) relationships with at least 40 producers (includes laborers working for those producers) in the above mentioned geographic area or demonstrate commitment to expand operations to those provinces. Applicants must be willing to provide contact information for these producers.
• Company contribution of at least 50 percent of the cost of the initiative (which will be reported in weekly, monthly or quarterly progress reports during the first successful application. Note this percentage will change in subsequent grant applications.
• Name an organization that they regularly conduct business with to be a partner in this grant and to share quarterly financial information with RADP-S to demonstrate the positive economic effects of the activity for both enterprises.
• Understand their commercial interest in providing incentives to the organizations they buy from or sell to through training, provision of inputs, and/or other forms of support.
• Planned activity must demonstrate a likely sales increase as a result of the activity and include a plan for measuring that sales increase.
• Demonstrate that an improved business skill and or practice and or technology will be implemented at the grantee company as a result of this activity. A plan for measuring this should be included in final application.
• (If they are input supply companies) be selling products of acceptable quality that respond to the needs of farmers, and they must have policies in place to ensure that no dangerous or illegal products are sold to farmers.

• Display sound management in the form of financial, administrative, and technical policies and procedures and present a system of internal controls that safeguard assets; protect against fraud, waste, and abuse; and support the achievement of program goals and objectives RADP-S will assess this capability prior to providing financial support.

Note: All for profit organizations related to agriculture that conduct activities either purchasing or operational in the RADP-S geographic location are eligible to apply under this program.

ANNEX A

Background & Program Description

RADP-S is a USAID-funded project implemented by Chemonics International. RADP-S aims to improve food and economic security for rural Afghans in Kandahar, Helmand, Zabul, and Uruzgan provinces. The focus is on improving the productivity and profitability of targeted value chains selected from the wheat, high-value crop, and livestock sectors. This sustainable agricultural development program will support the consolidation of licit economies to fuel economic growth, including providing alternatives to poppy cultivation. RADP-S willachieve thisobjective through; a) anagriculturalvaluechainapproach[1]; b) agricultural production and training support. Both are designedto addresssustainabilityand to supportpolicy, legal, andregulatorydevelopment.

RADP-Swillpromoteandexecute theagriculturaland alternativedevelopmentstrategiesofthe United States Government (USG)andGovernment of the Islamic Republic of Afghanistan

(GIRoA). RADP-Sisharmonized with Afghanistan’sNationalAgriculturalDevelopmentFramework (NADF)and the Ministry of Agriculture, Irrigation and Livestock’s (MAIL)priorities– particularlyfood securityand agribusiness.RADP-S also alignswith GIRoA’sAgriculture and RuralDevelopmentNationalPriorityProgram(NPP). Theregionalfocusof RADP-Sisdesigned to providemore localized attentionandfocuson sustainabilitystrategiesfromthebeginningofimplementation. RADP-S also directly assists Afghan women providing specially targeted business development, training, and livelihood activities that support women’s empowerment.

RADP-Siscomprised of the following fouractivitycomponents:WheatValueChain, High-ValueCrops, Livestock, and Enabling Environment.

The objective of this program is to promote improved sales and mutually beneficial (win-win) relationships between market actors in the tree/vine fruit, wheat, and livestock input supply sectors of Kandahar, Uruzgan, Helmand and Zabul provinces. RADP-S realizes the importance of private sector companies to drive change in markets. It is therefore seeking to support the initiatives of agribusiness companies in these sectors to improve their competitiveness and to build their capacity to provide improved or expanded products, services, support and/or market access to producers they buy from or sell to. RADP-S will ensure that all eligible companies that propose valid concepts will be considered for support and will not support activities that could distort local markets.

ANNEX B

Evaluation Criteria

Concept paper applications will be reviewed by an internal review panel of RADP-S and the following evaluation criteria will be considered:

Criteria / Yes/No
The proposed initiative will contribute to a 20% increase in sales over the next 24 months for the applicant business.
The proposed initiative will have a positive impact (either directly or in-directly) on other agents in the value chain that will be directly evidenced by the grantees partner organization named in this grant.
The proposed initiative will improve and/or expand sustainable commercial linkages between the applicant and producers (as either a buyer or supplier of products and services)
The applicantdemonstrates in his proposal that he sees a commercial interest in providing incentives to the organizations they buy from or sell to through training, provision of inputs, and/or other forms of support.
The applicant has at least 50% of the cost of the initiative to invest if first successful application, 60% if second, 70% if third.
The applicant has shown the ability to compete successfully in the end markets for their products or services
The applicant has the potential to influence other firms in the sector
The applicant has an acceptable track record and reputation as a business
The applicant willadopt improved technology and ormanagement practices as a result of this activity
Applicant has named an organization that they regularly conduct business with to be a partner in this grant and to share quarterly financial and sales information with RADP-S to demonstrate the positive economic effects of the activity for both enterprises.
Be able to demonstrate commercial (buying or selling) relationships with at least 40 producers (includes laborers working for those producers) in the above mentioned geographic area or demonstrate commitment to expand operations to those provinces. Applicants must be willing to provide contact information for these producers.
The applicant will assist RADP-S in gathering and confirming information required to prove the above assertions

Contribution of at least 50 percent of the cost of the initiative, which will be reported in weekly, monthly or quarterly progress reports during the first successful application. Note this percentage will change in subsequent grant applications.

Additionally, RADP-S will ensure environmental soundness and compliance in design and implementation as required by 22 CFR 216.

ANNEX C

CONCEPT PAPER APPLICATION TEMPLATE

INSTRUCTIONS(remove all instructions after filling)

• Please attach all supporting documents listed below and provide complete information for quick processing
• Your business should not be receiving financial assistance from a government, semi-government or any other agency for the activities for which you are applying for assistance from RADP-S.
• It is important that you provide us with correct information to ensure quick processing
• This application form should be signed by the authorized representative of the company.
• If you need any clarification or explanation, please contact
• Upon approval, you are requested to allocate and make available the required liquidity (finances) and dedicated personnel for the implementation of program activities on time.

NAME OF Applicant

Please fill out the following questions to check eligibility before completing the application:

Please check your eligibility before completing the form. / Yes / No / If you have answered YES TO ANY of the questions, please STOP and contact RADP-S. Otherwise continue to the next Question.

1. Are you a not-for-profit company or NGO?

1. Are you currently in bankruptcy process?

1. Have you ever defaulted on a bank loan?

Please Submit Following Supporting Documents (if applicable) with the Application

1. Tax certificate / Number
2. Sales Tax Certificate (if applicable)
3. Certification of legal business entity/ Registration Certificate
4. Copy of the Tazkira Card (All directors, or owners, or partners)

A. OWNERSHIP AND LEGAL DETAILS
Name of Company
Date Business started
Existing Shareholders (if any) / Name of Shareholders / % Share
1.
2.
3.
4.
Type of Enterprise
Sole Proprietorship / Unregistered Partnership / Registered Partnership / Private Limited Company
Please provide the following registration details
National Tax Number / If applicable, Sales Tax Registration No. / Company Registration Number/ Partnership Registration Number
B. CONTACT DETAILS
Correspondence Address (If more than one, include addresses in the Additional Information box)
Postal Address
Tel / Mobile
Fax / Email
Contact Person / Designation
Website (if any)
C. BUSINESS BRIEF
Please provide a brief description of your business and your products
D. FINANCIAL DETAIL
Please provide the following actual and forecasted financial information (in AFN)?
Actual Profit / Projected Profit
2015-16 / 2016-17
A: Revenues / Total Sales / % of Margin / Total Revenue / Total Sales / % of Margin / Total Revenue
Example: Income Received from Contracts (Bids)
Example: Income Received from Sales of (product/service Name)
Example: Income Received from Membership Fee
Total Gross Revenue
B: Expenses
Example: Salaries
Example: Production expenses
Example: Marketing
Total Expenses
C: Net Profit / =(A-B) / =(A-B)
Assets
E. EMPLOYEE DETAILS
How many permanent employees do you have? / Male: / Female:
How many contractual employees do you have? / Male: / Female:
F. BUSINESS DETAILS
Which Certifications you have?
Where and how do you sell your product(s) currently?
Do you have a marketing department? / Yes
No

ANNEX C.1 –Applicant Checklist

Training services requested / Yes / No
Management training
Accounting training
Business plan development training
Time management
Access to Finance
Business Management Training
Safety Management
Fundamental and growth MSE
Dairy Training
Poultry Training

Please briefly describe how these training services will benefit your organization to implement your mission and objectives:

Inputs requested / Yes / No

Please briefly describe how these Business Inputs will benefit your organization to implement your mission and objectives:

Please describe what resources (financial, personnel-related or other) that your organization will provide in support of this activity:

List contact information for three references from previous donors or organizations with whom your organization has collaborated in the last 2 years:

Donor Agency or Organization / Nature of Relationship or
Title of Project, Location / Start & End Dates of Collaboration / Contact Person
Name & Position:
Email:
Tel:
Name & Position:
Email:
Tel:
Name & Position:
Email:
Tel:
I. DECLARATION & AGREEMENT
I/We certify that the information provided in this application form is correct to the best of our knowledge. I/We agree to the RADP-Sterms and conditions as outlined in the instructions to Applicants. I/We understand that all information contained in this application will be treated confidentially by RADP-S (only for internal use) and we agree that RADP-S can have access to the original documentation as required.
I/We also confirm that we have funding available to pay for our part of any planned activities, and that we intend to fully implement the activities described in the attached project proposal if approved to do so by the RADP-S

Signature

/

Company Seal

Name
Job Title
CNIC
Date
FOR PROJECT USE ONLY
Date received ______APS Reference No. ______
The undersigned hereby certifies that: (a) the prospective applicant has received an official delivery receipt for its Concept Paper Application, (b) a copy of that receipt has been filed, (c) a reference number has been assigned, and (d) an application file has been opened. In addition, the prospective applicant has been advised as to the review and appraisal process, and its primary project point of contact.
Grants Manager______Date ______

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