BUSINESS PARTNERSHIPS PLATFORM

PRIVATE SECTOR ENGAGEMENT WORKSHOP

RADISSON BLU HOTEL, LAGOS, NIGERIA

29 FEBRUARY & 1 MARCH 2016

INTRODUCTION

This session is to provide information on the

Australian Department of Foreign Affairs & Trade

(DFAT) Business Partnerships Platform (BPP). BPP

is an initiative to engage the private sector in

achievement of DFAT development objectives and

commenced in 2015.

CONTEXT

CONTEXT

“Statement on Engaging the Private Sector in Aid and Development - Creating Shared Value Through Partnership”

Hon Julie Bishop, Minister of Foreign Affairs & Trade, 2014

Australia aid program clearly identifies the private sector as an essential partner to achieving sustainable development outcomes

APPROACH

AIM & GOAL OF BPP

AIM - improve the effectiveness of DFAT aid

program by drawing on the wealth of knowledge,

ideas, capabilities & resources that the private sector

has to offer.

GOAL - create scalable shared value partnerships

that advance economic and social conditions in

developing countries.

HOW - provision of grants to business / NGO

partnerships that advance DFAT development

objectives

BENEFIT OF BPP TO BUSINESS

• Strengthened networks

• Access to technical expertise

• Shared funding, risks and rewards

• Opportunity to make a social impact

• Better understanding of DFAT & its potential as

ongoing partner

BENEFIT OF BPP TO DFAT

• Increased volume of funding going to

development

• Access to technical knowledge and expertise

• Shared funding, risk and rewards

• Better understanding of the private sector & its

potential contribution to development

GENDER EQUALITY

• Gender equality essential to good development.

Business engagement with women as employees,

suppliers or customers can drive stronger business

outcomes. All BPP proposals expected to

demonstrate impact on positive gender outcomes

• Additionally, specific stream of funding being

made available for proposals with explicit focus

on gender equality & women’s economic

empowerment

PHASES OF BPP

• Establishment phase Nov 2015 to Nov 2017

• Funding rounds Nov 2015, June 2016 & Dec

2016

• This phase used to test and refine mechanism

• Decision on future of BPP will be made in early

2017

• Potential roll-out post 2017

BASIC APPRAISAL PROCESS

Competitive grants process. 2 stages:

1. Expression of interest (EOI)

2. Full proposal

EOI ELIGIBILITY

• Open to Australian, global and foreign

organizations of all sizes undertaking activities of

a commercial nature (note: not individuals)

• Must satisfy DFAT baseline due diligence

• Registered with business body

• Established financial history

• Not listed on any general sanctions lists

• Other background and reputational checks

• No DFAT staff involvement

• Open to consortia - need identified lead

PROPOSAL ELIGIBILITY

• Submit via “Smartygrants” application systems on

BPP website

• Detail how applicant would implement objectives

of BPP

• Can cover full range of business development

activities – feasibility studies, market research,

investment readiness, capex, training, consulting

• Can include staff costs, office costs, equipment,

workshops, travel, allowances

• DFAT matching contribution will not exceed

AUD 500 k over 12 month period

SAFEGUARDS & CROSS-CUTTING

Proposals must include applicant’s approach to:

•‘do no harm’ and protecting women & girls

•Including people with disabilities

•Child protection

•Minimizing fiduciary risk

All organizations (including all partners in

consortium) must comply with DFAT child

protection policy

STEPS IN APPLICATION PROCESS

1. Call for EOIs

2. EOI submission deadline

3. DFAT conformance check

4. Applicants advised of EOI outcome

5. Detailed business plans for successful EOIs

submitted

6. Partnership implementation commences

EOI ADMIN

1. Check for conformance with BPP investment

priorities

2. Conforming EOIs reviewed and ranked by

relevant DFAT Country Program

3. Rankings and comments passed to BPP Selection

Panel

4. Panel assess proposals against Selection Criteria

5. Panel provides report to DFAT

6. Successful EOIs proceed to Stage 2

7. Unsuccessful applicants notified

FULL APPLICATION ADMIN

1. Applicants invited to Stage 2 subject to DFAT

Baseline Due Diligence & other background

fiduciary & reputational checks

2. Applicants meet DFAT staff to receive feedback

and assistance with development of full business

plans

3. Applicants develop full business plans & submit

to DFAT

4. BPP Selection Panel assesses business plans

against selection criteria as well as relevant past

performance information

FULL APPLICATION ADMIN

5. Successful business plans recommended to

proceed to negotiation

6. Panel provides report to DFAT

7. Unsuccessful business plans may be

recommended for further refinement &

consideration for next round of funding. They

are entitled to written debriefing

CORE SELECTION CRITERIA

DFAT investment priority sectors: PASS / FAIL

• Agriculture, fisheries & water

• Building resistance – humanitarian assistance,

disaster risk reduction & social protection

• Education & health

• Effective governance policies, institutions &

functioning economies

• Gender equality & empowering women & girls

• Infrastructure, trade facilitation & international

competitiveness

CORE SELECTION CRITERIA

Scalability: 40 %

• Can proposed partnership outcomes be

increased in size or duplicated elsewhere?

• Will it lead to additional private sector

investment?

• Is partnership commercially viable?

• Are expected results realistic?

• Is chosen approach likely to achieve results?

CORE SELECTION CRITERIA

Value for money: 15 %

• Clear explanation of need for DFAT funding to

catalyse business investment

• Use of DFAT investment to leverage additional

funding

• Constraints on other sources of funding

• Appropriate solution to business / development

challenge

• Costs justified relative to impact

• Resourcing decisions well-informed

CORE SELECTION CRITERIA

Track record: 20 %

• Proven ability

• Sound technical analysis

• Track record of relevant partnerships /

relationships

• Done similar work

• Risk management systems

CORE SELECTION CRITERIA

Commitment to responsible business: 10 %

• Demonstrated commitment to sustainable

economic, social and environmental outcomes

• Strong track record in responsible business

• Reporting on responsible business practices

• Participation in responsible business initiatives

– Global Reporting Initiative, UN Global

Compact etc

CORE SELECTION CRITERIA

Equality & inclusiveness: 15 %

• Understanding of gender equality & disability

inclusiveness

• Response to gender equality & disability

inclusiveness issues identified

• M&E of gender and disability outcomes

FURTHER ELIGIBILITY CRITERIA

Gender quality & women’s empowerment: 100 % +

core BPP score

• Understanding of gender specific issues in

market / sector

• Specific & measurable improvement in

conditions of women / girls

• Product / service designed to benefit women /

girls

• Addresses1 or more pillar(s) of DFAT Gender

Policy – voice, economic empowerment, ending

violence

FUNDING CONTRACT

• Successful applicant engaged via funding

contract with BPP Fund Administrator

• Overarching MOU established between DFAT,

Fund Administrator and each member of

partnership