PSDAG
ASSET FINANCING GRANT FACILITY
ASSET FINANCING GRANT FACILITY
TARGETED
REQUEST FOR APPLICATIONS (RFA)# IRG-RFA-17-02
REQUEST FOR APPLICATIONS (RFA)# IRG-RFA-17-02
USAID
Contract No. AID-696-C-14-00002
Contract No. AID-696-C-14-00002
Program
Description
Description
Rwanda
Private Sector Driven Agriculture Growth (PSDAG) is a 5-Year project funded by
USAID Rwanda that started in August, 2014. The project is implemented by
International Resources Group (IRG), a wholly owned s
Private Sector Driven Agriculture Growth (PSDAG) is a 5-Year project funded by
USAID Rwanda that started in August, 2014. The project is implemented by
International Resources Group (IRG), a wholly owned s
ubsidiary of Engility
Corporation. The goal of PSDAG is to increase smallholder farmers’ incomes by
promoting private sector investments that contribute to the Government of
Rwanda’s (GoR’s) Vision 2020 aim of “transforming agriculture into a
market-oriented, competitive, andHigh-value sector.”
PSDAG
has two main objectives: 1) Assist the GOR to Increase Private Sector
Investment; and 2) Facilitate Increased Private Sector Investment in Upgrading
Agricultural Value Chains. The project’s Private Sector Engagement Strategy is
based on a facilitative, market systems approach to inclusive agriculture development
that catalyzes investment in productivity-enhancing technologies, builds the
capacity of partners to grow their businesses and contributes to improved
livelihoods and economic opportunities for Rwanda’s farmers.
has two main objectives: 1) Assist the GOR to Increase Private Sector
Investment; and 2) Facilitate Increased Private Sector Investment in Upgrading
Agricultural Value Chains. The project’s Private Sector Engagement Strategy is
based on a facilitative, market systems approach to inclusive agriculture development
that catalyzes investment in productivity-enhancing technologies, builds the
capacity of partners to grow their businesses and contributes to improved
livelihoods and economic opportunities for Rwanda’s farmers.
The
PSDAG program is seeking to develop strategic partnerships with the private
sector to increase investment in agriculture through expanding access to
quality and quantity of assets required in Agriculture value chains.
PSDAG will strengthen the capacity of agribusinesses and farmers to respond
to market opportunities by supporting increased adoption of technologies and
management practices, including ICT solutions, to upgrade productivity and
strengthen relationships within the market system.
PSDAG program is seeking to develop strategic partnerships with the private
sector to increase investment in agriculture through expanding access to
quality and quantity of assets required in Agriculture value chains.
PSDAG will strengthen the capacity of agribusinesses and farmers to respond
to market opportunities by supporting increased adoption of technologies and
management practices, including ICT solutions, to upgrade productivity and
strengthen relationships within the market system.
The
PSDAG program is developing strategic partnerships with the private sector to
increase investment in agriculture and to expand economic opportunities for
smallholder farmers through more competitive value chain market systems. As
detailed in its Annual Program Statement (APS)No. IRG-APS-17-01, the
PSDAG Value Chain Competitiveness Fund (VCCF) is a grant fund designed to
leverage private sector investment by reducing risk in investing in innovative
or new technologies or capacity building. PSDAG’sPrivate Sector Engagement
Strategy works to ensure the sustainability of investments in value chain
upgrades after project assistance ends by taking a facilitative approach. While
PSDAG can play a key role in piloting and building demand for new products and
reducing risk to farmers or investors, PSDAG is committed to not taking on the
direct role of any individual actor within the market system. The project will
identify opportunities to facilitate key investment based around 5 principles
of facilitation:
PSDAG program is developing strategic partnerships with the private sector to
increase investment in agriculture and to expand economic opportunities for
smallholder farmers through more competitive value chain market systems. As
detailed in its Annual Program Statement (APS)No. IRG-APS-17-01, the
PSDAG Value Chain Competitiveness Fund (VCCF) is a grant fund designed to
leverage private sector investment by reducing risk in investing in innovative
or new technologies or capacity building. PSDAG’sPrivate Sector Engagement
Strategy works to ensure the sustainability of investments in value chain
upgrades after project assistance ends by taking a facilitative approach. While
PSDAG can play a key role in piloting and building demand for new products and
reducing risk to farmers or investors, PSDAG is committed to not taking on the
direct role of any individual actor within the market system. The project will
identify opportunities to facilitate key investment based around 5 principles
of facilitation:
- Taking
a market system perspective - Driving
growth through identified end market opportunities - Fostering
competitiveness through improved inter-firm relationships - Upgrading
technologies and practices at the firm and industry level - Facilitating
improved competitiveness within the value chain system.
Under
its Private Sector Engagement Strategy, PSDAG is actively seeking committed
partnerships with a wide range of private and non-private stakeholders and will
select partners based on a competitive process.
its Private Sector Engagement Strategy, PSDAG is actively seeking committed
partnerships with a wide range of private and non-private stakeholders and will
select partners based on a competitive process.
Objective
of this RFA
of this RFA
Value
chain upgrades in equipment are needed to increase productivity, improve
quality and access new markets. PSDAG will leverage VCCF funds to increase
investment and facilitate value chain actors’ access to equipment through an
asset finance scheme in collaboration with financial institutions and
recognized suppliers/vendors.Default risk and collateral requirements are the
main constraints to businesses and individuals being able to access financing
to invest in these assets.PSDAG’s objective under this RFA is to facilitate
private sector investment that is inclusive of smallholder farmers.
chain upgrades in equipment are needed to increase productivity, improve
quality and access new markets. PSDAG will leverage VCCF funds to increase
investment and facilitate value chain actors’ access to equipment through an
asset finance scheme in collaboration with financial institutions and
recognized suppliers/vendors.Default risk and collateral requirements are the
main constraints to businesses and individuals being able to access financing
to invest in these assets.PSDAG’s objective under this RFA is to facilitate
private sector investment that is inclusive of smallholder farmers.
Technologies
to be Supported
to be Supported
PSDAG’s
goal is to facilitate private sector investment that is inclusive of
smallholder farmers. Value chain upgrades, including irrigation, processing and
transportation equipment, are needed to increase productivity, improve quality
and access new markets.
goal is to facilitate private sector investment that is inclusive of
smallholder farmers. Value chain upgrades, including irrigation, processing and
transportation equipment, are needed to increase productivity, improve quality
and access new markets.
Through
this RFA, PSDAG is streamlining its process for identifying partners who are
willing to investin specific technologies where a financial service provider is
identified to provide asset-based lending or a lease financing.VCCF support is
intended to de-risk investment in assets that aim at improving productivity,
quality control and management, value addition and transportation.Mechanization
services and equipment include but not limited to those used for land clearing,
planting,fertilizer and pest controlling, harvesting, transportation,
processing, drying and milling, and refrigeration.
this RFA, PSDAG is streamlining its process for identifying partners who are
willing to investin specific technologies where a financial service provider is
identified to provide asset-based lending or a lease financing.VCCF support is
intended to de-risk investment in assets that aim at improving productivity,
quality control and management, value addition and transportation.Mechanization
services and equipment include but not limited to those used for land clearing,
planting,fertilizer and pest controlling, harvesting, transportation,
processing, drying and milling, and refrigeration.
Under
this RFA, PSDAG is may support between 20 to35 percent of the asset cost over a
period of 12 months with a total budget not to exceed $150,000
per investment (inclusive of the grantee and PSDAG contribution); the leverage
requirement will be based on the following criteria:
this RFA, PSDAG is may support between 20 to35 percent of the asset cost over a
period of 12 months with a total budget not to exceed $150,000
per investment (inclusive of the grantee and PSDAG contribution); the leverage
requirement will be based on the following criteria:
- The
size of the investment - The
scope of the investment as regard the number of beneficiaries - The
length in terms of return on the investment - The
accessibility to external financing and - The
innovation of the asset
Applicants
are encouraged to identify and detail their current efforts to raise the
balance of funding through Partner Financial Service Providers (PFSPs).
Applicants with higher leverage contribution will be more competitive and final
contribution amounts required to be paid by the grantee will be negotiated
between PSDAG and successful applicants before award.
are encouraged to identify and detail their current efforts to raise the
balance of funding through Partner Financial Service Providers (PFSPs).
Applicants with higher leverage contribution will be more competitive and final
contribution amounts required to be paid by the grantee will be negotiated
between PSDAG and successful applicants before award.
The
list of equipment to be supported shall include but not be limited to the
following:
list of equipment to be supported shall include but not be limited to the
following:
|
Type
|
Purpose
|
|
Small
agri – equipment (Sheller, winnower, weighing scales, spreaders, sprayers, moisture meters, etc.) |
Shelling
maize from cobs to grains |
|
Tractors
|
Cultivation
and planting |
|
Irrigation
equipment |
Pumping
for increased productivity and risk management |
|
Storage
and cold storage equipment |
Quality
assurance |
|
Processing
equipment |
Value
addition for income |
|
Dairy
equipment (milking, collecting, testing, |
Milking
and animal feeding |
|
Others
|
To
specify |
Evaluation
Criteria
Criteria
Applicants
will be evaluated on:
will be evaluated on:
- How
well defined the investment (technology or equipment upgrade) is, how well
the applicant presents the suitability of the investment to their
business, and the return on investment analysis. - How
well the investment aligns with PSDAG objectives to increase private
sector investment that is inclusive of smallholder farmers. - To
what extent the technology will benefit women, youth and persons with
disabilities. - Value
for money; the number of beneficiaries and other expected results (see
Section 6) relative to the size of the grant request. - The
innovation of the asset to be finance. - The
extent to which the applicant is leveraging private sector financing for
their contribution (higher applicant’s leverage contribution will receive
higher scores).
Eligibility
requirements
requirements
- Submit
a complete application per Section 8 and Section 9 of the RFA. - Be
a U.S. and/or Rwandan or entity that is legally registered and recognized
under Rwandan law. Types of eligible entities are:
- Private
enterprises or firms; - Agricultural
based associations and cooperatives; - NGOs
(non-profit); - Foundations,
research institutes and universities; and - Legally-organized
associations/syndications of the above organizations;
- Investment
contributes to PSDAG objectives under this RFA as detailed in Section 2; - Demonstrate
willingness to contribute a minimum of 50% cost-share in new project
investment (most investments will require 65-80% cost share).
Expected
Results &Indicators of Performance
Results &Indicators of Performance
Prospective
grantees are expected to track some of the following results as indication of
performance of grant activities. The nature and extent of the monitoring will
be: i) determined by the type of project/investment; and ii) negotiated prior
to approval and/or disbursement of grant but may include any or all of the
following:
grantees are expected to track some of the following results as indication of
performance of grant activities. The nature and extent of the monitoring will
be: i) determined by the type of project/investment; and ii) negotiated prior
to approval and/or disbursement of grant but may include any or all of the
following:
- Value
of gross farm incomes of assisted farmers - Value
of new private sector investment in the agriculture sector or food chain - Value
of targeted agricultural commodities exported with USG assistance; - Value
of domestic sales; - Value
of incremental sales (collected at farm-level) attributed to FTF
implementation - Number
of beneficiaries with new market linkages as a results of USG assistance - Number
of private enterprises, producers’ organizations, trade and business
associations and community based organization (CBOs) that applied improved
technologies or management practices as a result of USG assistance - Number
of people who have applied improved technologies or management practices
to upgrade agricultural value chains as a result of USG assistance - Number
of hectares under improved technologies and management practices as a
result of USG assistance - Number
of individual who have received USG supported short term agricultural
sector productivity or food security training. - Number
of micro, small and medium enterprises receiving USG assistance to access
loans. - Value
of agricultural and rural loans provided as a result of PSDAG grant - Number
of micro, small and medium enterprises receiving business development
services from USG assisted sources.
Application
and Grant Award Process
and Grant Award Process
The
PSDAG project team will review Applications submitted in response to this RFA
on a monthly rolling basis for 3 months, or until PSDAG allocated funding has
been fully obligated. The process for reviewing Applications and subsequent
Grant Applications is as follows:
PSDAG project team will review Applications submitted in response to this RFA
on a monthly rolling basis for 3 months, or until PSDAG allocated funding has
been fully obligated. The process for reviewing Applications and subsequent
Grant Applications is as follows:
- Applications
will be screened to determine if they meet the minimum eligibility
requirements. - Eligible
applicationswill be reviewed by aGrants Evaluation Committee (GEC); it is
anticipated that applications will be reviewed starting on the first of
each month. - Once
all reviews are completed, the GEC will meet and select the most
competitive applicants. - Whether
approved or not approved, the applicant will receive written confirmation
of the result from PSDAG. - PSDAG
staff will complete due diligence and final budget negotiations, including
site visits, interviews and evaluations to confirm eligibility and
capacity of the applicant. This process will include environmental impact
assessment of the project, financial viability and management capability
of the organization, among other criteria. - Approved
grantees will sign a Grant Agreement. PSDAG staff will then begin to work
with the grantee to implement and monitor all activities. - PSDAG
may offer its support in-kind or in Rwandan Francs (RWF), and the
disbursement may be staggered based on milestones reached and/or agreed
upon financing schedules.
Request
for Application (RFA) Instructions
for Application (RFA) Instructions
Firms,
Cooperatives or organizations (NGOs) which are interested by this specific
grant opportunity and meet the eligibility criteria are required to request
full RFA documents (including the application template and procurement and
Financing Projections) and application instructions by sending an email to: grants@psdag.org.
Cooperatives or organizations (NGOs) which are interested by this specific
grant opportunity and meet the eligibility criteria are required to request
full RFA documents (including the application template and procurement and
Financing Projections) and application instructions by sending an email to: grants@psdag.org.
Applicants
will need to complete and submit Grant Application Templateand Budgetand
Payment Schedule, and their registration documents. It is highly encouraged
for Applicants to also submit a pro-forma invoice from the vendor including
terms and conditions for the acquisition and the service after sale.Note
that PSDAG will not contribute to funding the acquisition of assets already
commissioned or ordered by the applicant when any payment has already been made
to the vendor or is scheduled to be made before the grant is approved.
will need to complete and submit Grant Application Templateand Budgetand
Payment Schedule, and their registration documents. It is highly encouraged
for Applicants to also submit a pro-forma invoice from the vendor including
terms and conditions for the acquisition and the service after sale.Note
that PSDAG will not contribute to funding the acquisition of assets already
commissioned or ordered by the applicant when any payment has already been made
to the vendor or is scheduled to be made before the grant is approved.
Submission
of Applications
of Applications
Applications
will be reviewed on a first-come rolling basis. Applications may be submitted
to PSDAG at any point up to the closing date of this solicitation. Completed
application forms should be submitted on or before August 31, 2017 at 17:00
hours Local time. Applications should be submitted electronically to: grants@psdag.orgor delivered to the PSDAG offices
located at KG 684 St, No. 19, Kacyiru, Kigali.
will be reviewed on a first-come rolling basis. Applications may be submitted
to PSDAG at any point up to the closing date of this solicitation. Completed
application forms should be submitted on or before August 31, 2017 at 17:00
hours Local time. Applications should be submitted electronically to: grants@psdag.orgor delivered to the PSDAG offices
located at KG 684 St, No. 19, Kacyiru, Kigali.
Applicants
who are selected will be notified and will be informed on next steps of
pre-award assessment.
who are selected will be notified and will be informed on next steps of
pre-award assessment.
Bidders’
conference
conference
The
project will hold two (2) pre-application question and answer conferences one
onThursday, April 27,2017and the second one on Thursday, May 4, 2017 at
the PSDAG training room located at the PSDAG offices in Kacyiru, Kigali, at 11:00am
to 12:30pm. This conference will allow interested applicants the chance to
ask questions about the RFA. Interested parties that would like to attend this
workshop must confirm their attendance by sending the participant’s name and
the organization’s name to grants@psdag.org.
Maximum of 2 representatives may attend from each organization. When confirming
attendance, please indicate if the person has any special needs to access the
conference. No reimbursement for costs of attendance will be met. This event
will start promptly.
project will hold two (2) pre-application question and answer conferences one
onThursday, April 27,2017and the second one on Thursday, May 4, 2017 at
the PSDAG training room located at the PSDAG offices in Kacyiru, Kigali, at 11:00am
to 12:30pm. This conference will allow interested applicants the chance to
ask questions about the RFA. Interested parties that would like to attend this
workshop must confirm their attendance by sending the participant’s name and
the organization’s name to grants@psdag.org.
Maximum of 2 representatives may attend from each organization. When confirming
attendance, please indicate if the person has any special needs to access the
conference. No reimbursement for costs of attendance will be met. This event
will start promptly.