Full Project Proposal (FPP) Guideline

i

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

1 Approved by National Project Steering Committee on 22 November 2012

ii

TABLE OF CONTENTS

1. Introduction .................................................................................................................... 1

1.1 Background............................................................................................................. 1

1.2 Introduction to PACT ............................................................................................... 1

1.2.1 PACT's Development Objective ....................................................................... 1

1.2.2 Project Location ............................................................................................... 2

1.2.3 Project Components ........................................................................................ 3

1.3 Competitive Matching Grant .................................................................................... 5

1.4 Organization of the Guidelines ................................................................................ 6

2. Field Verification ............................................................................................................ 7

3. Full Project Proposal Development and Submission ................................................... 10

4. 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

iii

ABBREVIATIONS

ABD Agribusiness Development

CMG Competitive Matching Grant

CoP Code of Practice

DADO District Agricultural Development Office

DDC District Development Committee

DFTQC Department of Food Technology and Quality Control

DLS Department of Livestock Services

DLSO District Livestock Services Office

DOA Department of Agriculture

DOC Department of Co-operatives

DOLS Department of Livestock Service

ECoP Environment Code of Practice

FNCCI Federation of Nepalese Chamber of Commerce and Industries

FO Farmers Organization

FPP Full Project Proposal

FV Field Verification

GO Government Organization

GON Government of Nepal

GA Grant Applicant

GR Grant Recipient

GRO Grant Recipient Organization

ICB International Competitive Bidding

M and E Monitoring and Evaluation

MIS Management Information System

MoAD Ministry of Agriculture Development

MOU Memorandum of Understanding

NGO Non-Governmental Organization

PMT

PCN

NPSC

Project Management Team

Project Concept Note

National Project Steering Committee

PACT Project for Agricultural Commercialization and Trade

PD Project Director

PIM Project Implementation Manual

RTSG

SPAC

TIM

Regional Technical Support Group

Sub-project Appraisal Committee

Technology, Information and Market Infrastructure

iv

TSC Technical Sub-Committee

TSG

VCDP

VDC

Technical Support Group

Value Chain Development Plan

Village Development Committee

WB World Bank

1

1. INTRODUCTION

1.1 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 Mid-

Term 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

2 Date of effectiveness

2

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.

3

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:

3 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.

4

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

5

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 sector’s 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 market-

oriented production.

6

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.

4 Here iinstitution should be understood by PACT.

5 Project here refers to the sub-project being implemented by the Grant Recipients.

7

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) Ensure transparency and good governance within the grant applicant organizations

(d) 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 Representative, MoAD

o Representative, DADO or DLSO from other districts

o 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

8

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

9

(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.

10

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

confusions and ambiguities, please get

clarifications from the project officials 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

6 For Grant Applicants applying for Category 1

7 For Grant Applicants applying for Category 2

Remember: Neither allow your

excellent competitive proposals to

be copied by others, nor copy from

others

Remember: You will need to submit

three copies of proposal together

with a soft copy (CD).

11

category they are applying for. Failing to indicate category means disqualification for

the project’s 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 Evidences/Documents Required Explanation

1 Registration certificate (renewed) Certificate (copy).

2 Financial Standing of the Grant

Applicant:

Farmer Groups- Recent bank statement

and 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 .

3 Commitment letter from Grant

Applicant to bear its committed

share

A letter from the GA together with minutes

of meeting in case of membership

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

any financial institutions

Attach copies of letters issued by

financial institutions

2 Award and certificates Provide copies if the grant applicant has

received any certificates or awards from

international or national organizations

3 Cost-sharing agreements between

Grant Applicant, Service

Recipients(beneficiaries) and other

Collaborators/Partners such as

VDCs and DDCs, if any

Agreement/MOU copy when such

agreements have been made.

12

(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 applicant’s 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)

13

(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 Other instructions for the FPP

(a) 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.

14

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

(b) PACT does not finance administrative/managerial costs in both category 1 and

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 applicant’s

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.

15

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.

16

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 Activity

One Field Verification of shortlisted PCNs

Two

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.)

Three Tabulation (preparation of score sheets)

Fourth Reconfirmation on environment and social assessment

Fifth Review of FPP evaluation and recommendation to NPSC

Sixth Review and approval (final)

17

Full Proposal Evaluation Process (Third call)

Shortlisted PCN Field Verification Recommendation for further evaluations

No financing for the time being, further

preparatory works required

Financial Evaluation

Organizational Capacity

Assessment

Reconfirmation on Environment and Social Assessment

SPAC reviews and recommendation to NPSC

Final approval by NPSC by SPAC

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

Technical Evaluation

Technical Approach and

Methodology

18

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

Criteria with scores in bracket

Organizational

capacity

assessment

40 (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)

Technical

Approach and

methodology

60 (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.

19

B. Financial Evaluation

S.N Criteria with scores in bracket Maximum

Possible Score

Responsibility

1 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)

20

2 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 etc-grant or loan) (5)

20

3 Revenue and expenditure plan

_ Estimation of revenue (Market price justification and sale proceeds)

_ Inclusion of necessary cost items

20

4 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)

40

Total 100

Note: Figures inside bracket denote maximum possible score.

20

ANNEX 1: FIELD VERIFICATION FORMAT

Government of Nepal



Standard Form for Field Verification (Third Call)

PACT Reference Code

Date of Field Verification ______________________

District

Name of the Grant Applicant

Address:

I. Field Verifier

Name Position Representing Organization

Coordinator of the FV team:

II. Contact Details of the GR (Re-confirmation)

Chairperson name and

mobile number:

Contact person/applicant's

name and mobile number:

Email, if any:

Fax (Deliverable), if any

21

Prior to the start of the field verification, please check the following and get the evidence.

SN Document Tick (√) if available

and (X) if not

available

Evidence

1 Registration at competent authority as

per the PIM

Certificate

2 Does this applicant has an original

copy of the PCN submitted by it

Verify

3 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

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

4 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

Copy/original letter

from the concerned

organizations

5 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

Verify the letter with

the GA and also with

the collaborator, if

present during FV

6 Presence of the current chairperson

and the contact person mentioned in

the PCN

Names

III. Participants in the field verification from the side of the grant applicant (Get

Attendance with mobile/telephone number etc.)

22

IV. About Grant Applicant Organization

Name of the Grant Applicant Organization:

Year of Establishment

Membership (composition)

Body Dalits Janajatis Others Total

M F M F M F M F

General body

Executive committee

Key specialties of GA (Maximum 3)

Major activities (at present)- Maximum 5

Physical Infrastructure Details

Particular Number Size Area Ownership

Land

Office Building

Storage House

Collection Center

Any other (Specify)

Equipment, Machinery and Transport Facilities (Owned)

Name Number Condition (Working/Not Working)

Staff (Working on salary/honorarium)

Name Number Male Female

Full Time

Part-Time

Financial Status of GA

Details Approx. Remark

Bank deposit Name of the Bank

23

Payable to others, including loan Name of the Bank, if loan is taken

from the Bank

Receivable from others including

Bank , donors and service recipients

Name of major

institutions/organizations

Cash with GA, if any

Equity

Institutional linkages and affiliations of GA (Details of other agencies partnering with GA at present and past)

Past Present

Name of the Organization

Purpose of linkages/affiliations

Name of Organization Purpose

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)

24

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 (Completed, 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 Janajatis Others Total

Male Female M F M F M M

Outputs from the proposed project

(a) Present (Baseline situation)

Crops/commodities Area/No Production Productivity Sale (Mt) Sale price, Rs/Kg

8 Explore the consistency between the thematic area for which this organization has applied for

PACT's partial funding and experience of the organization.

25

(b) Following the completion of the project, if approved after technical and financial

proposal (end of project situation) (Maximum 2 years period )

Crops/commodities Area/No Production Productivity Sale (Mt) Sale price, Rs/Kg

Estimated Project Cost:

S.No Funding source NRs As % to total cost

1 Applicant’s contribution (Proposed)

A Cash

A1 Own source as equity

A

2

from other source (this could include

loan from bank, contribution from other

organizations such as VDC, NGO, and

other partners)

B as Kind

2 Grant requested from PACT

Total Project Cost

VI. Expected date of commencement of the project (days from signing the

contract: __________ days

VII. Social/Environment Assessment/Reconfirmation Issues :

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)

26

Particular Yes No If yes, Remarks,

Forest/wildlife/other resources

Water bodies (River, pond, lakes)

National Park/Protected Areas

Drinking Water source

Heritage site/temple/religious site

Grave yard

o 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 Yes No

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 large-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 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

27

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

9 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.

28

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)

29

Government of Nepal


PROJECT FOR AGRICULTURE COMMERCIALIZATION AND TRADE

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

ANNEX 2: LETTER OF INVITATION10

Reference Number: Date To --------------------------- 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 PACT’s 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 team’s consensus decision to issue this letter to the GA for submitting the FPP.

30

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 sub-project 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

PACT Code

31

Government of Nepal


PROJECT FOR AGRICULTURE COMMERCIALIZATION AND TRADE

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

ANNEX 3: FIELD VERIFICATION RESULT11 Reference Number: Date To --------------------------- 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 team’s consensus decision to issue this letter to the respective Grant Applicant.

PACT Code

32

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



Documents/evidences to be submitted




Applicant:

Farmer Groups-Recent bank statement and

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



share

A letter from the GA together with minutes of

meeting in case of membership organizations like

farmer groups, market committees, cooperatives

and producers association) and private firms with

more than one shareholders), and a letter when


4 Cost-sharing agreements

between Grant Applicant, Service

Recipients(beneficiaries) and

other Collaborators/Partners

such as VDCs and DDCs, if any

Agreement/MOU copy when such agreements

have been made.



Attach copies of letter issued by financial

institutions, if any

6 Award and certificates Provide copies if the grant applicant has received

any certificates or awards from international or

national organization

PACT Code

33

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

only one which is most appropriately

describes your organization)

(1) Farmer group/committee (2) Cooperative (3) Producer Association (4) Private Firm

Primary business of the GA organization

(Please check only one which applies to

your organization)

(1) Producer (2) Wholesaler (3) Inputs supplier (4) Processor (5) Exporter (6) Retailer (7) Financial institution

12

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.

PACT Code

34

(8) Others, (specify)

Secondary business (Please check only

one which applies to your organization)

(1) Producer (2) Wholesaler (3) Inputs supplier (4) Processor (5) Exporter (6) Retailer (7) Financial institution (8) Others, (specify)

Section 2: Experience of the grant applicant organization14

2.1 Experience


Period (From To )


Client, if any

Partners, If any


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 proposals such as cereal seeds, flower, fruits, coffee and so forth)

Katha/Ropani/Bigha/Ha15

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.

PACT Code

35

Average number of animals reared per HH by livestock type (Required for meat, milk related projects only)

Total Production by commodity17 (Annual)

Kg/Liter/Mt

Productivity by commodity per Unit Area/Number/HH as applicable (Last season)

Mt/Ha Live weight, Kg/unit animal Litre/animal/lactation period/HH

Gross sale in Rs by commodity18

Sale by commodity Rs per Ha Rs per HH

Section 3: Physical and Institutional Capacity 3.1 Physical Infrastructure Details (Owned)

Particular Number Size Area Ownership

Land

Office Building

Storage House

Collection Center

Any other (Specify)

3.2 Equipment, Machinery and Transport Facilities (Owned)


3.3 Staff (Working on salary/honorarium)


Full Time

Part-Time

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.

PACT Code

36

Section 4: Proposed project/proposal

Title of the project/proposal

Objective of the

proposal/project

Thematic Area/Value Chain

Grant Category (Please

check only one)

Category 1: Technology, Information and Market

infrastructure support Grant

Category 2: Agribusiness support Grant

Implementing partners, if any (a)

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)

A. HHs by Gender (a) Male HH head: (b) Female HH head:

B. HHs by ethnicity (a) Dalit (b) Ethnic/Janajati (c) Others

Project cost (This includes

grant amount requested from

the project and the share of

the grant applicant and

beneficiaries/participants

Total project cost: Rs._______________19

(a) Grant amount requested from PACT,

Rs__________

(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 Area of Expertise Position Assigned Task Assigned

Sub-project manager

Accountant

19

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

PACT Code

37

Section 6: Social/Environmental Screening

6.1 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 VDCs-








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 Yes No


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 large-

PACT Code

38

scale soil erosion?






8. Does the proposed project include any activities that promote or involve incidence of child labor?



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


need to undertake IEE/EIA?

6.5 Have you prepared environmental management plan? Check- (1) Yes (2) No


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.

PACT Code

39

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 No

o If yes, give the commercial names of the pesticides and chemicals which will be used

most commonly?

1.

2.

3.

4.

5.

PACT Code

40

PART B: TECHNICAL AND FINANCIAL PROPOSAL

PART B.1: TECHNICAL PROPOSAL

Section 1: Proposed project21


Objective of the

project/proposal



check only one)








would share cost/finance

the proposed activities and

share the benefits as well)




grant amount requested

from the project and the

share of the grant applicant

and



(c) Grant amount requested from PACT,

Rs__________

(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

Copy from Section 4 or same as section 4 22


PACT Code

41

3.

Section 3. Technical Approach and Methodology

Describe how your organization would respond to above problems and challenges. (Your technical approach and methodology)- (Maximum- two pages)23

Section 4. Linkage with Value Chain Actor

4.1 Backward Linkage (Pre-Production)

SN Activities With Whom (Name of Actor) Nature of Linkage

4.2 Forward Linkage (Post Production)


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

related proposals such as cereal

seeds, flower, fruits, coffee and so

forth)

Katha/Ropani/

Bigha/Ha24

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.

PACT Code

42

Number of animals reared per HH by

type of animal/livestock

(required for meat, milk related

projects only

Production (Annual) by type of

commodity/value chain

Kg/Liter/Mt

Productivity MT/Ha Live weight, Kg/unit animal Litre/animal/lactation period

Sale Rs per Ha Rs per HH

Construction of collection

centre/storage house etc

Number

Repair and maintenance of rural

roads

KM

(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 Unit Quantity

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)

PACT Code

43

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 Year Second Year

First

three

months

Second

three

months

Third

three

months

Fourth

three

months

First

three

months

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.

PACT Code

44

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 Items Cost Details Source of Finance

Total Unit Quantity Rate per unit (Rs) Total GA

28 PACT Other organizations

29

A Capital cost

1.1 Infrastructure Development

Sub-total

1.2 Equipment and Machinery

Sub-total

Total Capital Cost

2 Operation Cost

28

GA- Grant Applicant 29

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.

PACT Code

45




29

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

PACT Code

46

Section 2. Estimation of cost of production (annual)

S.N. Description Unit Quantity Rate Amount

1 Production inputs (seeds, fertilizer etc)

1.1

1.2

1.3

1.4

1.5

1.6

1.7

2 Labour

3 Utility (Electricity, irrigation fee, land rent etc)

4 Interest in credit (10% interest)

5 Depreciation and amortization

Total cost of production

Per Ha cost

Per HH cost

Section 3: Profit and Loss Estimation

S.N. Particular Amount in Rs

1 Sales Revenue

2 Gross income per Ha

3 Gross income per HH

4 Net income per Ha (Annual)

5 Net income per HH (Annual)

PACT Code

47

Annex: Curriculum Vitae

Formats for CVs

Name:

Proposed Position:

Sex: Age

Nationality

Full Address:

Email:

Fax:

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

PACT Code

46

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



Documents/evidences to be submitted




Applicant:

Farmer Groups-Recent bank statement and

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



share

A letter from the GA together with minutes of

meeting in case of membership organizations like

farmer groups, market committees, cooperatives

and producers association) and private firms with

more than one shareholders), and a letter when


4 Cost-sharing agreements

between Grant Applicant, Service

Recipients(beneficiaries) and

other Collaborators/Partners

such as VDCs and DDCs, if any

Agreement/MOU copy when such agreements

have been made.



Attach copies of letter issued by financial

institutions, if any

6 Award and certificates Provide copies if the grant applicant has received

any certificates or awards from international or

national organization

PACT Code

47

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)

1. Farmer group/committee 2. Cooperative 3. Producer Association 4. Private Firm

Primary business of the GA organization

(Please check only one which applies to

your organization)

1. Producer 2. Wholesaler 3. Inputs supplier 4. Processor 5. Exporter 6. Retailer 7. Financial institution 8. 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.

PACT Code

48

Secondary business (Please check only

one which applies to your organization)

1. Producer 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


Period (From To )


Client, if any

Partners, If any


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.


Area coverage (required for crop related proposals such as cereal seeds, flower, fruits, coffee and so forth)

Katha/Ropani/Bigha/Ha33

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


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.

PACT Code

49

HH by livestock type (Required for meat, milk related projects only)

Total Production by commodity35 (Annual)

Kg/Liter/Mt

Productivity by commodity per Unit Area/Number/HH as applicable (Last season)

Mt/Ha Live weight, Kg/unit animal Litre/animal/lactation period/HH

Gross sale in Rs by commodity36

Sale by commodity Rs per Ha Rs per HH

Section 3: Physical and Institutional Capacity 3.1 Physical Infrastructure Details (Owned)

Particular Number Size Area Remarks

Land

Office Building

Storage House

Collection Center

Any other (Specify)

3.2 Equipment, Machinery and Transport Facilities (Owned)


3.3 Staff (Working on salary/honorarium)


Full Time

Part-Time

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.

PACT Code

50

Section 4: Proposed project/proposal


Objective of the

proposal/project



check only one)




Implementing partners, if any (a)

Collaborators, if any












the project and the share of

the grant applicant and



(a) Grant amount requested from PACT,

Rs__________

(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 Area of Expertise Position Assigned Task Assigned

Sub-project manager

Accountant

37


PACT Code

51

Section 6: Social/Environmental Screening

6.1 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 VDCs-








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 Yes No


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 large-scale soil erosion?






8. Does the proposed project include any activities that promote or involve incidence of child labor?



PACT Code

52

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


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


need to undertake IEE/EIA?

6.5 Have you prepared environmental management plan? Check- (1) Yes (2) No


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.

PACT Code

53

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


Objectives of the

proposal/proposal


Grant Category Category 2: Agribusiness support Grant








Area coverage or quantity of

products as applicable by

commodity type



the project and the share of the

grant applicant and



(e) Grant amount requested from PACT,

Rs__________

(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 PACT’s 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).

PACT Code

54

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

Describe how your organization would respond to above problems and challenges. (Your technical approach and methodology)- (Maximum- two pages)42

Section 4. Linkage with Value Chain Actor

4.1 Backward Linkage (Pre-Production)


4.2 Forward Linkage (Post Production)


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)


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.

PACT Code

55

Area coverage (required for crop

related proposals such as cereal

seeds, flower, fruits and coffee)

Katha/Ropani/

Bigha/Ha43

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.

A. HHs by Gender

(a) Male HH head: (b) Female HH head:

B. HHs by ethnicity

(a) Dalit (b) Ethnic/Janajati (c) Others

Number of animals reared per HH by

type of animal/livestock

(required for meat, milk related

projects only

Production (Annual) by type of

commodity/value chain

Kg/Liter/Mt

Productivity MT/Ha Live weight, Kg/unit animal Litre/animal/lactation period

Sale Rs per Ha Rs per HH

Construction of collection

centre/storage house etc

Number

Repair and maintenance of rural

roads

KM

(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


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.

PACT Code

56

this table is very important for preparation of the log-frame and further analysis of benefit cost analysis and other financial details.

Outcome Unit Quantity

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)

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

Impact Unit Quantity

Annual increase in GA’s gross income

Rs

Annual increase in GA’s net income

Rs

Increase in employment level (a) Full employment (b) Partial employment

Estimated income tax to be paid to the government exchequer

Rs

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 Year Second Year

First

three

months

Second

three

months

Third

three

months

Fourth

three

months

First

three

months

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.

PACT Code

57

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

7. Log-frame

Narrative summary Objectively Verifiable

Indicators

Means of

verifications

Risks and

assumptions

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).

9 Describe how your business will be sustained after the end of the project support if your proposal will be successful in receiving project’s 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.

PACT Code

58

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




49

A Capital cost

1.1 Infrastructure Development

Sub-total

1.2 Equipment and Machinery

Sub-total

Total Capital Cost

2 Operation Cost

48

GA- Grant Applicant 49

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.

PACT Code

59




49

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


Sub-total

4 Management




Sub-total

B Total Operation Cost

Overall sub-project cost

PACT Code

60

2. Provide your annual expenditure plan as follows:

Table 2: Annual Expenditure Plan

SN

Activity Unit Quantity Rate (Rs)

Total cost

First Year (Rs) Second Year (Rs) Total PAC

T (Rs)

First Six months Second six months First Six months Second six months

Quantity

Cost

PACT

Quantity

Cost

PACT

Quantity

Cost

PACT

Quantity

Cost

PACT

1 Costs associated with Outputs

1.1

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

1.2 Output 2:

1.3 Output 3:

1.4 Output 4:

1.5 Output 5:

Sub-total (1)

2 Other costs

2.1 Inputs

2.2 Capacity Development

Training

PACT Code

61

SN

Activity Unit Quantity Rate (Rs)

Total cost

First Year (Rs) Second Year (Rs) Total PAC

T (Rs)

First Six months Second six months First Six months Second six months

Quantity

Cost

PACT

Quantity

Cost

PACT

Quantity

Cost

PACT

Quantity

Cost

PACT

Interactions

Monitoring and evaluation

2.3 Public hearing and transparency

(a) Hording Board

(b) Public hearing

(c) Video production/Dissemination in national TV


(e) Participation in national/regional fairs/exhibition

2.4 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).

PACT Code

62

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 Civil works

1.1 Shed

1.2 Storage

1.3 Culvert

2 Machinery and equipment

Sprayers

3 Furniture and office equipment

4 Others (Mention)

Total

3.2 Estimation of Annual Operating Cost

Table 4: Estimation of Annual Fixed Cost

S.N. Particular Unit Quantity Rate

Rs

Amount

Rs

1 Depreciation (From Table 3)

2 Amortization

Capacity Development (20% of

respective total cost on annual basis)

Public Awareness (20% of respective

total cost on annual basis)

3 Management (Indirect Labour)

4 Others

Total

PACT Code

63

Table 5: Estimation of Variable Cost

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

1 Production inputs/raw materials:

2 Direct Labour

a Skilled

b Unskilled

3 Utilities:

4

Repair & Maintenance (2% of total of Table 3 from second year onwards)

5 Interest on Short Term Loan

6 Promotional Expenses @1% sales

TOTAL VARIABLE COST:

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. Description Unit Quantity Rate Amount

1 Raw material

1.1

1.2

1.3

1.4

1.5

1.6

1.7

2 Direct labour

3 Utility

4 Repair and maintenance

PACT Code

64

5 Office Overhead

Operating cost

6 Financial cost


Total

Table 8: Profit and Loss Estimation

S.N. Particular Amount in Rs

1 Sales Revenue

2 Operating cost

3 Gross Operating Profit


5 Profit Before Interest and Tax (PBIT)

6 Financial cost

7 Profit Before Tax

8 Tax

9 Net Profit

Table 9: Cash Flow Projection

Year of operation 0 1 2 3 4 5

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)

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

PACT Code

65

Annex: Curriculum Vitae

Formats for CVs

Name:

Proposed Position:

Sex: Age

Nationality

Full Address:

Email:

Fax:

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

PACT Code

66

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$)

SN Goods and Services Unit Sub-project's estimated cost Requirements/Remarks

PACT's share/grant GA's share

1 Capital costs

1.1 Physical infrastructure

development

Sq ft

(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 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.

Kind contribution acceptable

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

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

PACT Code

67



Rs.1,000 per unit. market price per unit

is Rs. 1000 or

above.

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 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 Operational costs

2.1 Seeds and Breeds

PACT Code

68



(a) Seeds Mt/Kg Maximum 25% of the

total cost

Minimum 75%

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

(c) Fruit saplings Number Maximum 25% of the

total cost

Minimum 75%

of the total cost

Government rate

(d) Procurement of live animals Number Not available 100% of the

total cost

2.2 Chemicals and fertilizers

(a) Chemical fertilizers Mt Not available 100% of the

total cost

(b) Pesticides Lit or Kg Not available for any

type of chemicals

100% of the

total cost

(c) Production of vermi-compost Mt Maximum 50% of the

total cost

Minimum 50%

of the total cost

Submit the cost estimate for the

production of vermin-compost

2.3 Artificial insemination Number Maximum 50% of the

cost per animal.

Minimum 50%

of the cost per

animal.

Government rate

2.4 Daily Labour Number Not available 100% of the

PACT Code

69



total cost

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

No of

trainees

Max. 70% of the cost Min 30 % of the

total cost

Need to include training details and cost

estimate specifying the subject matter,

duration of the training, resource person

and so forth in the FPP

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

No of

trainees

Max. 70% of the cost Min 30 % of the

total cost



duration of the training, training venue


(c) Observation (Study Tour)-in-country

Number Max. 70% of the total

cost

Min 30 % of the

total cost

Need to include details and cost estimate

specifying the places to visit with

purpose, number of participants, duration,


(d) Observation tour- Abroad Number Not available Voluntary Need to include details and cost estimate



PACT Code

70



and so forth in the FP

2.7 Procurement of raw materials

for processing

Mt Not available 100% of the

total cost

2.8 Chemicals for processing Kg/Lt Not available 100% of the

total cost

2.9 Veterinary medicines Not available 100% of the

cost

2.10 Packing materials such as sacks

and polythene bags

Number Not available 100% of the

total cost

2.11 Remuneration and salary

(a) Sub-project manager Person

month

Not available 100% of the

total cost

(b) Accountant Person

month

Not available 100% of the

total cost

(c) Short-term technical service (intermittent)

Person days Maximum 180 days

when the duration of

the sub-project is 2

years @ Rs 500 per

days

Any amount

above available

beyond PACT's

grant amount

2.12 Transparency and reporting

PACT Code

71



(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

Needs to follow PACT's

instruction/guidelines

(b) Dissemination through local FM Radios

Number of

broadcasting

Maximum 4 per sub-

project @ Rs 2500

per broadcast

Any amount

above Rs 2500

per broadcast

and increase in

number



(c) Participation in local/regional fair

Number Maximum 2 per sub-

project Rs 10,000

per fair

Any amount

above Rs

10,000.00 per

fair

-

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


project and Rs.

30,000 per fair

Any amount

above Rs

30,000.00 per

fair



(e) Public hearing Number Maximum 3 per sub-

project @ Rs 5000

per public hearing

Any amount

above Rs 5000

per hearing

and increase in

number



Distribution of three hearings will be as

follows: First just after signing of grant

PACT Code

72



agreement with PACT, second before

release of the third installment and the

last after the completion of the sub-

project but before submitting the request

for the final grant settlement.

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


project @ Rs 50,000

per broadcast

Any amount

above Rs

50,000.00 per

broadcast



(g) Reporting Number Not available 100% of the

total cost


instruction/guidelines (At least 6 reports

will need to be submitted during the sub-

project period)

2.13 Leasing land or equipment Not available Voluntary Not allowed to account GA's share

2.14 Repair and maintenance of physical infrastructure and equipments

Not available Voluntary Not allowed to account GA's share

2.15 Seed money/revolving fund to be distributed among the beneficiaries

Not available Voluntary Not allowed to account GA's share

PACT Code

73

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 Requirements

PACT's

share/grant

GA's share

1 Capital costs

1.1 Physical infrastructure

development

Sq ft

(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

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

Maximum 50

percent of the

total costs

Minimum 50% of

the total 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.

Cash contribution

1.2 Equipment and machineries

All types of equipments Number Maximum 50% of

the total cost

whose market

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.

PACT Code

74


PACT's

share/grant

GA's share

price per unit is

Rs. 1000 or

above.

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.

1.3 Vehicles for transportation of

goods

Number Maximum 30% of

the total cost

Minimum 70% 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. 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,

PACT Code

75


PACT's

share/grant

GA's share

quantity and capacity.

2 Operational costs

2.1 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

(c) Fruit saplings Number Maximum 50% of

the total cost

At least 50% of

the total cost

Government rate

(d) Procurement of live animals Number Not available 100% of the total

cost

2.2 Chemicals and fertilizers

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

cost

(b) Pesticides Lit or Kg Not available for

any type of

chemicals

100% of the total

cost

(c) Production of vermi-compost Mt Not available 100% of the total

PACT Code

76


PACT's

share/grant

GA's share

cost

2.3 Artificial insemination Number Not available Not available Government rate

2.4 Daily Labour Number Not available 100% of the total

cost

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





(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)-in-country

Number Max. 50% of the

total cost

Min 50 % of the

total cost




PACT Code

77


PACT's

share/grant

GA's share


(d) Observation tour- Abroad Number Max. 50% of the

total cost

Min 50 % of the

total cost




and so forth in the FP

(e) Small research and studies (Market related)

Number Max 2 studies per

sub-project, Rs.

75,000 per sub-

project

Any amount

above Rs 75000

per study and

increase in

number


of the study specifying the objectives of

the study, resource persons, scope of the

study and direct benefits to the GA

2.7 Procurement of raw materials

for processing

Mt Not available 100% of the total

cost

2.8 Chemicals for processing Kg/Lt Not available 100% of the total

cost

2.9 Veterinary medicines Not available 100% of the total

cost

2.10 Packing materials such as sacks

and polythene bags

Number Not available 100% of the total

cost

2.11 Remuneration and salary

(a) Sub-project manager Person Not available 100% of the total

PACT Code

78


PACT's

share/grant

GA's share

month cost

(b) Accountant Person

month

Not available 100% of the total

cost

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

Person days Maximum 60 days

when the duration

of the sub-project

is 2 years @ Rs

1500 per days

Above 60 days-

voluntary

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



(b) Dissemination through local FM Radios

Number of

broadcasting

Maximum 4 per

sub-project @ Rs

2500 per

broadcast

Any amount

above Rs 2500

per broadcast and

increase in

number



(c) Participation in local/regional fair

Number Maximum 2 per

sub-project Rs

Any amount

above Rs

-

PACT Code

79


PACT's

share/grant

GA's share

10,000 per fair 10,000.00 per fair

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


sub-project and

Rs. 30,000 per fair

under 50:50 cost

sharing

arrangement

Any amount

above Rs

30,000.00 per fair

under 50:50 cost

sharing

arrangement



(e) Public hearing Number Maximum 3 per

sub-project @ Rs

5000 per public

hearing

Any amount

above Rs 5000

per hearing and

increase in

number



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 sub-

project but before submitting the request

for the final grant settlement.

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


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



PACT Code

80


PACT's

share/grant

GA's share

the total cost sharing

arrangement

(h) Reporting Number Not available 100% of the total

cost


instruction/guidelines (At least 6 reports

will need to be submitted during the sub-

project period)

2.13 Leasing land or equipment Not available Voluntary

Not allowed to account share

2.14 Repair and maintenance of physical infrastructure and equipments

Not available Voluntary Not allowed to account share

2.15 Seed money/revolving fund to be distributed among the beneficiaries

Not available Not available Not allowed to account share

Full Project Proposal (FPP) Guideline

Documents

Transcript of Full Project Proposal (FPP) Guideline