USAID Punjab Enabling Environment Project (USAID PEEP)
PEEP Matching Grants Program
Annual Program Statement (APS) No MG/APS/002/2016
Mobilize Major Private Sector Investments in Olive Sector
Issuance Date: June 01, 2016
Dear Applicant:
USAID Punjab Enabling Environment Project (PEEP), implemented by Chemonics International, is seeking grant applications for implementation of activities designed to Mobilize Major Private Sector Investments in Olive Sector. The grants will be awarded and implemented in accordance with USAID and US Government regulations governing grants under contracts and Punjab Enabling Environment Project (PEEP) internal grant management policies.
The project may hold pre-application workshop(s) as and when required. Date, time and venue of such workshop(s) will be communicated through press and online where this APS was published. These workshop(s) will provide an opportunity to the eligible and interested applicants to ask questions about the APS and receive guidance on how to complete the application form. Interested applicants that meet the eligibility requirements defined in Section III below and would like to attend any of these workshop(s) must confirm their attendance by sending the participant’s name and the organization’s name to .
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 the chief of party or .
The following Annexes are included with this APS:
- Annex A – Grant Application Form
- Annex B – Grant Application Budget Form (Ctrl+Click here to download)
- Annex C – Implementation Timeline
- Annex D – Applicant Self-Assessment Form
- Annex E – Required Certifications
· Prohibition on providing Federal Assistance to Entities that Require Certain Internal Confidentiality Agreements – Representation (April 2015)
o Certification Regarding Terrorist Financing
o Participant Certification Narcotics Offenses And Drug Trafficking
o Certification of Recipient
- Annex F – Initial Environmental Examination Form.
SECTION I. PROGRAM DESCRIPTION
IA. OBJECTIVE
USAID Punjab Enabling Environment Project (PEEP) is awarding matching grants to private sector entities involved in inputs manufacturing/supplies, production, processing, value addition, distribution, and retail/exports of olive product lines or entrepreneurs considering new investments in Olive value chain, or services rendered to enterprises in the province of Punjab. The objective of the activity is to accelerate the investments by lowering the risk for private sector investors for business opportunities that have emerged due to Government’s initiative to convert Potohar Region into the Olive Valley of the country.
PEEP will provide grants for technical and financial support to such investors, entrepreneurs, and businesses who intend to invest in the sector, however, shy away from opportunities due to perceived high risk or challenges involved in the process. This annual program statement under the PEEP grants Program is aimed to:
· Investment mobilization and employment generation in Olive Sector Value Chains
· Strengthen the capacity and competitiveness of private sector enterprises in Olive value chain
· Support new investments arising from policy and regulatory reforms and Government’s incentives for an enabling environment
· Support efficiency and productivity enhancement, lowering risk associated with adoption of new techniques and innovations
Specifically, to:
· Demonstrate success of business models emerging as result of government initiatives for enabling business environment for Olive sector
· To help the private sector seize the business opportunities arising from the government initiatives
· Demonstrate success of improved practices, efficient service delivery, and innovative technologies resulting in olive sector growth in the Potohar region.
IB. BACKGROUND
Punjab Enabling Environment Project (PEEP) is a five-year project financed by USAID and implemented by Chemonics International. Goal of the project is to improve the enabling environment for the agriculture sector in Punjab to promote private sector led growth, especially focusing on the horticulture, livestock and dairy sub-sectors. The project is working to build a strong business enabling and policy environment to help boost private sector investment in the three subsectors. The project efforts are contributing towards USAID’s development objective of Increased Incomes and Employment in target sectors.
PEEP’s aim, therefore, is focused to:
a) Accelerate advocacy for policy, regulatory and institutional reforms through the private sector, leading to early adoption and implementation of reforms;
b) Support institutional capacity building to sustain enabling environment reforms;
c) Mobilize major private sector investments in livestock, dairy, and horticulture projects in support of changes in the business environment.
Project interventions are meant to improve the business environment by influencing policy and regulatory reforms through consultative mechanisms. This would help spur private sector investments leading to increased employment and incomes in the target subsectors. PEEP stakeholders include private sector entrepreneurs, civil society actors, local universities, sector associations, business service agencies and the Government of Punjab. Core advocacy groups have been established involving the civil society and the public and private sector working together to help identify and advocate for better designing and implementation of various initiatives to improve Punjab’s business environment in the target subsectors.
Govt. of Punjab (GoPb) has launched a 5 years project (2015-20) to help develop Potohar region of Punjab into an Olive Valley, targeting 15,000 acres for olive cultivation. The project implementation has started in 2015 and farmers have been provided with olive seedlings. It is envisioned that the olive oil production resulting from implementation of this project will help substitute import of olive oil as well as put Pakistan among the olive oil exporting countries. PEEP has been working on the olive sector ever since and organized a seminar highlighting needs and issues pertaining to the sector development, as well as developing a comprehensive strategy. As a result of seminar recommendations, and as a part of olive sector development strategy, PEEP developed a set of activities for the sector and related associations and established a matching grant program intended to support the sector value chain to support investment in the olive sector.
Owing to enhanced awareness about the amplified importance of olive sector, private sector is already exploring investment opportunities emerging out of government and PEEP’s initiative along the value chain of the sector. It is expected that through this APS, for matching grants, a sizeable investment can be leveraged along the olive value chain that will directly lead towards creating more jobs in the selected region. It fits directly into the project’s objects of spurring investment and creating jobs in the targeted sectors.
IC. PROGRAM DESCRIPTION
In order to expand the investment base of the Olive sector of Punjab, it is imperative to lower risks associated with particular business models.
USAID’s Punjab Enabling Environment Project (PEEP) will support the Government of Punjab in its effort to transform Potohar valley into Olive Valley of the country. In-order to catalyze new investments, it will be necessary to demonstrate technical, economical and commercial feasibility of business models/projects arising from the business opportunities. To achieve this, PEEP aims at working with prospective investors/businesses who are planning new investments to materialize emerging business opportunities in Olive Sector.
PEEP recognizes that demonstration of a successful business model/project opens up gates for new investments. Typically private sector investors feel more comfortable pursuing businesses with known risk and returns. PEEP grants program therefore would showcase practical investment pilots across the olive value chain through business models demonstrating technological, financial, and other aspects of the businesses. The idea is to practically demonstrate success of such investments/business models by supporting entrepreneurs / businesses who otherwise shy away from such opportunities due to perceived high risk.
PEEP is offering matching grants for a range of investment opportunities across the Olive value chain under the following initiatives:
a) Establishment of certified olive nurseries
b) Establishment of on-farm olive oil extraction units
c) Establishment of mobile olive oil extraction units
d) Commercialization of olive value added products from Potohar region
e) Market development and branding of indigenous olive oil and olive value added products in Punjab
f) Support to private sector Technical and Business Development Services (BDS) providers for operating in Potohar region
g) Establishment of Olive Oil Refinery in Potohar region
PEEP also recognizes that some grantees may need technical assistance to more effectively carry out the activity. Consequently applicants are encouraged to specify in the application the need for technical assistance and/or training.
IC.1 GRANT CATEGORIES
a) Establishment of certified olive nurseries
This grant aims to assist existing nurseries with expansion plans or new startup costs related to enhancement in production capacities of the certified plant nurseries with special focus on adoption and propagation of high yield plants for improved quality olive fruits. The support will be provided to assist producers/producers’ consortia/cooperatives/clusters and corporate producers to certifying the plant varieties through relevant government agencies and transform/develop their certified nurseries into commercially viable operations. This matching grant will enable participating investors to access innovative techniques to improve plant qualities and enhance yield per acre. All activities supported under this grant will primarily be carried out at the nursery level in selected Potohar region.
b) Establishment of on-farm olive oil extraction units
This grant aims to support new and existing enterprises that may have enough olive fruit available but face difficulty in finding investors or obtain financing to install oil extraction unit at the farm level for the harvested fruit. This grant will focus to support introduction of small to medium size olive oil extraction units to improve the ability of farmer to extract Olive Oil as soon as harvesting of the fruit starts.
c) Establishment of mobile olive oil extraction units
This grant aims to support new or existing entrepreneurs who can provide oil extraction facilities to farmers in Potohar region on commercial basis. This grant will be available to businesses such as processors, exporters, cold chain operators, packers, transporters and suppliers of goods and services who are interested in providing olive oil extraction facility to farmers.
d) Commercialization of olive value added products from Potohar region
This grant aims to support existing and new entrepreneurs involved in the commercialization of the olive value added products, to seize opportunities arising in Potohar region as a result of PEEP interventions in the olive sector. The grant can be utilized to develop and scale-up the olive value added products manufacturing facilities and processes for commercial viability.
e) Market development and branding of indigenous olive oil and olive value added products in Punjab
This grant aims to support olive oil and value added products market development and branding for enhanced market penetration both in the domestic and international markets.
f) Support to private sector Technical and Business Development Services Providers (BDSPs) for operating in Potohar region
This grant aims to support current or new entities involved in the provision of business development services; stand-alone commercial services or as part of an integrated services program encompassing plantation development, production, packaging, logistics and market access of olive products. The services may also include training and development of farmers in good farm practices, advice on post-harvest handling and processing, olive oil extraction and value added products development, etc.
g) Establishment of Olive Oil Refinery in Potohar region
This grant aims to support establishment of an olive oil refinery of international standards in Potohar region. PEEP intends to encourage investments in olive oil refinery in the wake of potential increase of olive fruit in the region in near future.
ID. AUTHORITY/GOVERNING REGULATIONS
Punjab Enabling Environment Project (PEEP) grant awards are made under the authority of the U.S. Foreign Affairs Act and USAID’s Automated Directive System (ADS) 302.3.5.6, “Grants Under Contracts.” Awards made to non-U.S. organizations will adhere to guidance provided under ADS Chapter 303, “Grants and Cooperative Agreements to Non-Governmental Organizations” and will be within the terms of the USAID Standard Provisions for Non-U.S. Non-Governmental Recipients, as well as the Punjab Enabling Environment Project (PEEP) grants procedures.
ADS 303 references additional regulatory documents issued by the U.S. Government’s Office of Management and Budget (OMB) and the U.S. Agency for International Development:
- 2 CFR 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart E (U.S. applicants are subject to 2 CFR 200 in its entirety)
Full text of 2 CFR 200 can be found at http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl.
PEEP is required to ensure that all organizations receiving USAID grant funds comply with the guidance found in these circulars, as applicable to the respective terms and conditions of their grant awards.
Under the PEEP grant program, USAID retains the right at all times to terminate, in whole or in part, PEEP grant-making authorities.
SECTION II. AWARD INFORMATION
Punjab Enabling Environment Project (PEEP) anticipates awarding approximately PKR 25,000,000 through at least 7 anticipated grant awards. It is anticipated that each grant award may range between the amounts specified in the table below, but the final amount will be dependent upon grant activities and final negotiation and may be higher than that range.
Initiative / Funding range PKREstablishment of certified olive nurseries / 1,100,000 to 2,500,000
Establishment of on-farm olive oil extraction units / 1,100,000 to 2,500,000
Establishment of mobile olive oil extraction units / 1,100,000 to 2,500,000
Commercialization of Olive value added products from Potohar region / 1,100,000 to 2,500,000
Market development and branding of indigenous olive oil and olive value added products in Punjab / 1,100,000 to 2,500,000
Support to private sector Technical and Business Development Services (BDS) providers for operating in Potohar region / 1,100,000 to 2,500,000
Establishment of Olive Oil Refinery in Potohar region / 2,500,000 to 10,000,000
The duration of any grant award under this solicitation is expected to be no more than 12 months. The estimated start date of grants awarded under this solicitation is August 01, 2016.
The type of grant will be determined during the negotiation process.
SECTION III. ELIGIBILITY