Guyana/EU FLEGT invites eligible groups to represent sector stakeholders

NOTICE

Guyana and the European Union are currently developing a Voluntary Partnership Agreement (VPA) under the EU Forest Law Enforcement Governance and Trade Program (EU-FLEGT). A Joint Road Map is guiding the process and a number of deliverables have been completed including four negotiation sessions.

The UK Department of International Development (DFID) is supporting this process and funding has been earmarked for eligible groups or persons that represent sector stakeholders. The National Technical Working Group (NTWG) which is coordinating the preparation of the VPA now invites applications from eligible groups or persons.

Please note as part of the application process the FLEGT Facilitation Support Office (FFSO) will conduct due diligence verification of all applicants. The FFSO and the FLEGT Secretariat will also provide guidance to intended applicants.

The application process, forms and criteria can be found on the GFC website under the EU FLEGT tab; or can be obtained from the FLEGT Secretariat or by emailing: .

Kindly refer to: www.forestry.gov.gy;or contact the FLEGT Secretariat on Tel# 592-226-7271(-

4) for additional information.

The deadline for receipt of applications is 5th August, 2016 at 3:30pm

National Technical Working Group

Guyana VPA Support: Grant Guidelines for Entities other Relevant Stakeholders

Background

1.1  The UK Department for International Development (DFID) and the Government of Norway are making funds available through Coffey International to support the commitment made by the Government of Guyana to negotiate and implement a Voluntary Partnership Agreement (VPA) with the European Union (EU). In total, DFID and Norway are making available £1.8m to support the process, with the initial focus being on supporting the Government of Guyana and relevant sector stakeholders to engage effectively in VPA negotiations through the National Technical Working Group (NTWG). Disbursement and administration of grant funds will be managed by Coffey International Development Ltd through a FLEGT Support Office.

1.2  Grants will be accessible under the VPA support fund. A bilateral committee, comprising of representatives from DFID and the Government of Guyana will oversee the fund. The bilateral committee will periodically review the performance and effectiveness of this fund, including a reflection of an equitable balance of support to various stakeholder interests. Rules of Procedure governing the functioning of the Bilateral Committee are available on the GFC website.

1.3  Commissioning of work supported by the VPA support fund will be undertaken by the NTWG. The NTWG has been established to oversee the preparations for the negotiations. The NTWG will propose to the bilateral committee a quarterly work plan and budget encompassing any agreed proposals for grants to support the actions of stakeholders. The quarterly work plan will contain detailed information on proposed work, grant recipients and activities that are eligible for funding. Eligibility criteria are outlined below. Organisations that meet the criteria will be shortlisted and invited to submit project proposals for consideration by the NTWG. The NTWG will establish a mechanism for assessing and agreeing to proposals. On agreement by the NTWG, proposed grants will be submitted to the bilateral committee as part of the quarterly workplan for approval by the bilateral committee. The grant funds will be disbursed on a monthly basis by Coffey International Development Ltd through the FLEGT Support Office in accordance with the guidelines published by the bilateral committee.

1.4  Monitoring of specific grant performance against agreed work plans and progress towards deliverables will be undertaken by the NTWG1. The NTWG will propose a technical reporting framework to facilitate this monitoring and oversight of financial invoicing, reporting and financial management will be the responsibility of the FLEGT Support office.

What sort of action could be supported?

1.  Grant Activities

2.1  Eligible Activities

Activities that are deemed necessary to support stakeholder engagement with VPA negotiations and in particular to further the actions of set out in the Joint VPA roadmap are eligible for funding. As a guide, such activities may include:

·  Communication and information dissemination on FLEGT VPA activities;

·  Support to the development of the Legality Assurance System, in particular upgrading the wood tracking system and the legality definition;

·  Development of training manuals and verification and licensing protocols;

·  Review of policies and laws to make them consistent with VPA requirements;

·  Training and capacity building activities related to VPA negotiation process and implementation;

·  Publications of documents (e.g.. legal definition, guidelines produced, the design of brochures to support FLEGT processes in Guyana, brochures for awareness raising activities);

1 NTWG comprises of one member each from the Guyana Forestry Commission, Forest Products Exporters to the EU, National Toshaos Council, Indigenous Peoples Commission, Ministry of Legal Affairs, Ministry of Natural Resources and the Environment, Forest Products Association, Forest Products Development and Marketing Council Inc., Guyana Manufacturers and Services Association, Forest Products Development and Marketing Council Inc., Small Loggers’ Association, Ministry of Amerindian Affairs and Guyana Revenue Authority

·  Commission studies or other research to inform negotiating positions on particular issues or elements to be covered by the agreement;

·  Supporting stakeholder consultations within or between stakeholder groups; including support to cover the travel costs for Guyana’s negotiating team to attend relevant meetings;

·  Stakeholder consultations and analysis that address gender concerns would be of particular interest to DFID’s wider FGMC that support NTWG work in Guyana

·  Supporting visits by stakeholders to other VPA partner countries or elsewhere to draw lessons that may inform Guyana’s negotiating position; and

·  Review of business processes within the Guyana Forestry Commission (GFC) and FLEGT Secretariat.

2.2  Ineligible Activities

Any activity/entity that has not received endorsement from the NTWG and bi-lateral committee will not be eligible to receive funds. The following list illustrates the type of activities that are not eligible to receive grant funding (NB: the list is not exhaustive):

·  Support for activities that bear no relevance to the VPA roadmap (e.g. a proposal to carry out tree planting);

·  No retrospective funding for activities that have taken place prior to the submission of the proposal to the bi-lateral committee;

·  Any activities that are aimed at providing loans or investments to other entities;

·  Asset Management/Disposal

·  The use of funds to supplement existing staff salaries;

·  Salary components that are directly attributed to the implementation of activities will be approved at the discretion of the NTWG and bi-lateral committee.

Who is eligible for support under the VPA Support Fund?

The Fund will support projects and actions to further the VPA Joint Roadmap undertaken by (1) the Guyana Forestry Commission, (2) other member organisations of the NTWG, (3) as well as other entities representing stakeholder interests beyond the NTWG. These guidelines are particularly oriented to actions undertaken by other entities besides the Guyana Forestry Commission. The NTWG will decide on the award of grants so as to ensure that actions are targeted at the priorities of the VPA process. They will endeavour to ensure that these funds are accessible to all stakeholders.

2.  Grant Fund Structure and Disbursement

2.1  Organisations may be invited by the National Technical Working Group (NTWG) to submit project proposals using the template in Annex 1. Organisations who are represented on the NTWG may also apply for grants. Other organisations may also submit unsolicited project proposals to the NTWG for their consideration. The project proposals will be assessed by the NTWG against the preliminary check list in Table 1in Annex 2to ensure that they meet the minimum criteria for consideration for funding.

2.2  The quantum of funds that an organisation will be eligible to receive as a grant will depend on its capacity and project management track record. This will depend on which ‘band’ the application falls, which is determined by the extent to which the organisation meets the various criteria within each band set out below:

Band 1 US$15, 000 30,000

Band 2 US$ 30,000 50,000

Band 3 US$ 50,000 ≤ 100,000

Organisations applying for grants in Bands 1, 2 and 3 should have experience of managing grants/projects to the total sum of US$10,000, US$35,000 and US$75,000 respectively with no adverse reports against the organisation In addition, there should be no adverse material change in the operations of the organisations or financial conditions which would negatively impact its ability to successfully implement the project being proposed and deliver set results.

2.3  Organisations must ensure that they provide the NTWG with evidence of compliance with each of the eligibility requirements for the relevant funding Band. The Guyana FLEGT Support Office, which is managed by Coffey International, will undertake due diligence checks prior to the disbursement of grant funds and at regular intervals throughout the implementation of activities to assess the internal controls and systems of grant recipients. The findings of these assessments will be shared with the NTWG and the bi-lateral committee. Routine checks and controls will include reliability of the grant recipients’ financial controls, systems and processes as well as on- going compliance with grant rules and procedures.

3.  Project selection

For the purpose of Project Selection, the NTWG will form a Finance and Project Selection Committee which will comprise the following NTWG member organisations:

a.  Forest Products Association

b.  Forest Products Development and Marketing Council

c.  Ministry of Amerindian Affairs

d.  Guyana Forestry Commission

This Sub Committee will select proposals based on the agreed guidelines. For proposals which have been received, the Committee will submit names to the FLEGT Support Office for due diligence checks to be carried out. Once these are completed, results of the due diligence checks will be submitted to the NTWG via the Committee for final approval of projects. A report on all applicants and decisions taken in relation to proposals will be sent to the Bilateral Committee.

3.1  Other legal entities that meet the criteria and elements of the Due Diligence Checklist (Table 1) will then be subject to Project proposal Appraisal against the criteria in Table 2:

Table 2: Appraisal Criteria

Criterion / Maximum Points
1.  Relevance and Complementarity
–  Does the proposal further actions outlined in the VPA roadmap?
–  Does the proposal deepen understanding of stakeholders or the NTWG related to VPA process?
–  Does the proposal build on other initiatives in-country?
–  What was the process for developing the concept? Was the process participatory and involve concerned beneficiaries?
–  Does the proposal respond to the needs and expectations of specific target groups and beneficiaries?
–  Does the proposal effectively consider gender sensitivities (as relevant)? / 40 points
2.  Effectiveness and Feasibility
–  Will the activities identified, contribute to the achievement of the stated results and be carried out within the project duration and focused on the VPA roadmap?
–  Are relevant risks taken into account in the proposal?
–  Is there a clear plan to monitor the implementation of the project and report to NTWG?
–  Is the role for partner organisations clear (where relevant)? / 20 points
3. Sustainability
- Are the proposed activities clearly linked to longer term VPA influence? / 5 points
4. Capitalization of lessons learned
- Will the proposal contribute to dissemination of ideas, lessons and best practices? / 5 points
5.  Detailed project budget
–  Is the budget complete and with the costs justified?
–  Is the budget realistic and is it linked to proposed activities? / 30 points
–  Has proponent provided a budget summary and detailed budget for each of the activities proposed?
–  Is there sufficient provision made in the budget to monitor and report project actions.
–  Does the project provide “value for money”?
TOTAL POINTS / 100

NB: A total of 100 points are available. To be eligible for funding, proposals must receive at least 70 points in total. Proposals must also meet a minimum of 50% of allocated scores in each criterion.

4.  Grant Fund Reporting

4.1  Financial Reporting Requirements

Funding released on a monthly basis will take into account the total operational budget required and any underspend carried forward from the previous month.

To secure the release of funds, grant recipients must:

·  Submit a detailed expenditure report and a copy of the bank statement for the account used for the management of grant funds to the FLEGT Support Office (Office Manager) by 16.00 on the last working day of each month2;

·  Reports must contain original copies of all receipts for expenditure. Photocopies of these receipts should be kept by the grant recipient for five years following the project expiry date, and are to be provided during this timescale on request by DFID, the Government of Norway or an authorised representative of either institution;

·  Self-certification of receipts (for example for taxi costs where the taxi is unable to provide a receipt) is limited to an amount not more than 5% of the total expenditure being accounted for in one month.

Financial compliance will be guided by the following rules:

·  Expenditure can only be made against activities as detailed in the workplan approved by the NTWG and bi-lateral committee;

·  All procurement of goods and services must comply with the Government of Guyana procurement rules

– see section 6. Evidence of compliance with Government of Guyana procurement rules must be retained by the grant recipient in the event that it is required for audit purposes by DFID;

·  Unauthorised expenditure (i.e. Expenditure on activities, goods or services not described in the approved workplan) will result in the withholding of subsequent tranches of grant funding to the grant recipient in question. Unauthorised expenditures must also be reimbursed in full by the organisation in receipt of the grant.

Non-Compliance with the Financial Terms of the grant will result in:

·  Immediate suspension of further disbursements pending submission of the required documentation;

·  Notification of the suspension to the grant recipient, the FLEGT Secretariat, NTWG and the Bi-lateral Committee; and

·  Compensation from the grant recipient for any expenditure that cannot be satisfactorily accounted for;

The FLEGT Support Office are contractually obliged to report any suspicion of fraud or the misuse of funds to DFID and the grant recipient must fully cooperate with any investigation into fraud allegations as set out in Section 7 below.