MILLENNIUM CHALLENGE ACCOUNT NAMIBIA

Transcription

1 MILLENNIUM CHALLENGE ACCOUNT NAMIBIA INDIGENOUS NATURAL PRODUCTS INNOVATION FUND (INP INNOVATION FUND) GRANT MANUAL Version 1 (27 th May 2010)

2 ACRONYMS AND INITIALISMS CBO EU FDA GEC GRN INP IPTT MAWF MCA-N MCC MET NBRI NGO PPO SMEs TER US community-based organisation European Union Food and Drug Administration (US) Grant Evaluation Committee (MCA-N INP Innovation Fund) Government of the Republic of Namibia Indigenous Natural Products Indigenous Plant Task Team Ministry of Agriculture, Water and Forestry Millennium Challenge Account Namibia Millennium Challenge Corporation Ministry of Environment and Tourism National Botanical Research Institute non-governmental organisation Producer and Processor Organisation small and medium enterprises Technical Evaluation Report United States MCA-N INP Innovation Fund Grant Manual (27 th May 2010) ii

3 Table of Contents 1. Summary Background Information Indigenous Natural Products Activity Producer and Processor Organisations Sub-Activity Market Information Delivery Sub-Activity INP Innovation Fund What is the INP Innovation Fund For? Priority Research Themes Product Use Innovations New Indigenous Natural Product Platforms Extraction and Refinement Innovations Product Analysis Regulatory Compliance Certification Market Development Policy Review and Development Grant Thresholds, Budgets and Mechanism Grant Thresholds Grant Proposal Budgets Grant Mechanism Intellectual Property Rules for Applications Eligibility Criteria Eligible Applicants Eligible Actions Ineligible Actions Number of Proposals and Grants per Applicant Eligibility of Costs... 9 MCA-N INP Innovation Fund Grant Manual (27 th May 2010) iii

4 5. Application Procedures How to Apply, and the Procedures to Follow Supporting Documentation Submission of Concept Papers OR Full Proposals Evaluation and Selection of Applications Timeframe and Process Composition of the Grant Evaluation Committee Evaluation Criteria Environmental Assessment Evaluation of Concept Papers Evaluation of Full Proposals Notification of the Awarding Authority s Decision APPENDIX I : Concept Paper Application Form APPENDIX II : Full Proposal Application Form APPENDIX III : Grant Agreement MCA-N INP Innovation Fund Grant Manual (27 th May 2010) iv

5 IMPORTANT NOTICE Please read the contents of this Grant Manual carefully and ensure that you follow the instructions provided herein. Only Applications that are consistent with the guidelines provided in this Grant Manual will be considered. Please also note that this Grant Manual may be amended from time to time, and that Applicants should ensure that they refer to the most up-to-date Grant Manual when making Applications. The call for Concept Papers will indicate which version is the latest, and will be posted on the Millennium Challenge Account Namibia (MCA-N) website. If you need any additional information or clarification, please contact the Agriculture Project Fund Grant Manager at Tel (61) , or agricfund@mcanamibia.org. Please consult our website ( for any updates relating to the INP Innovation Fund. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) v

6 1. Summary The Millennium Challenge Account Namibia (MCA-N) Programme aims to reduce rural poverty through investments that achieve a sustainable increase in the economic performance of the agricultural sector. The Indigenous Natural Products (INP) Activity provides for an INP Innovation Fund to be managed by MCA-N. This Grant Manual provides information on the priority research/development areas that will be considered for funding under the INP Innovation Fund, eligibility criteria, and Grant Application, evaluation and contractual processes. For additional information on the INP Activity under the Agriculture Project, please visit ( 2. Background Information 2.1 Indigenous Natural Products Activity The goal of the INP Activity is to increase economic opportunities for indigenous natural products stakeholders through improved organisational, business and technical capacities along the value chain. The INP Activity is expected to increase incomes for up to primary producers and their households, benefiting approximately individuals. Increasing direct participation on the part of the primary producers in the marketplace along with value adding to raw natural products such as marula, Kalahari melon seed, hoodia, devil s claw and ximenia (sour plum), amongst others, is the key objective of the INP Activity. The value chain approach that the MCA Namibia Programme has adopted will ensure that the activities are responsive to the fast-changing market realities for natural products. At present, most of the revenue from selling products made from these valuable commodities is generated outside Namibia. The MCA Namibia Programme will facilitate increased participation by the primary producers in the processing, packaging and marketing of these products. The INP Activity comprises three sub-activities: (1) Support to Producer and Processor Organisations (PPOs); (2) Provision of an INP Innovation Fund; and (3) Delivery of information on indigenous natural products and market data through the National Botanical Research Institute (NBRI) in the Ministry of Agriculture, Water and Forestry (MAWF). The INP Innovation Fund should not be seen in isolation from the other sub-activities of the INP Activity; consequently, a summary of the other two sub-activities is provided below Producer and Processor Organisations Sub-Activity Building the capacity of PPOs in areas critical to developing sustainable organisations/businesses that can effectively respond to market demands for volumes of quality products is the focus of the Producer and Processor Organisation Sub-Activity. This will be accomplished through the delivery of training and the provision of small Primary Production Improvement Grants to PPOs. The combination of training and Grants can significantly improve the ability of PPOs to amass quality indigenous natural products to meet volume and product specifications and the requirements of global buyers. A functional, certified traceability system is the global industry s norm, and is critical for PPOs to capture projected market demand. Guidance to PPOs on traceability preparation and investment will be based on validated market intelligence and cost-benefit calculations. This value adding can improve access to new markets and deliver a significant price premium for PPOs at point of sale. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 1

7 The indigenous natural products investment follows a value chain development strategy that further develops organisational and business capacities among PPOs and small and medium enterprises (SMEs) that includes enrichment planting, on-farm cultivation, harvesting, post-harvest value-adding and marketing. Within the indigenous natural products industry, the commercial capacity building of PPOs was the major cross-cutting need found in all activities. Significant capacity building has taken place on the market side, but there has been little attention to it on the primary producer side of the value chain. In addition, the small number of SMEs that focus on the processing and manufacturing of indigenous natural products need some degree of commercial capacity building Market Information Delivery Sub-Activity Market information is critical to sound business decision making. Timely, reliable and transparent market information is not readily available to most stakeholders in the indigenous natural products industry, especially to PPOs. The sole source of market information for most PPOs comes from intermediate buyers. A third-party source to validate offers of buyers and/or provide a knowledge base from which to negotiate price can be a very valuable decision-making tool. The NBRI will collect volume and price information from PPOs, processors and buyers, and analyse and disseminate this in a timely and effective manner. The NBRI has an established plant database (NamIP) for capturing market information relating to indigenous plant species, and is well positioned to collect and disseminate information to the MAWF extension services, non-governmental organisations (NGOs) and stakeholders along the value chain. Together with stakeholders, the NBRI will identify the type of market information that would be appropriate, as well as the communication options (telephone dial-in, radio, print etc.) to allow for its optimal dissemination to a large audience. The NBRI will also conduct an organisational audit of the Indigenous Plant Task Team (IPTT) and provide recommendations and follow-on assistance for structural reform and development, and the delivery of those services most needed by the indigenous natural products industry. In addition, MCA-N is funding a full-time junior position (INP Market Information Development and Support Officer) and a senior consultant at the NBRI to support the IPTT Secretariat and the Market Information Delivery Sub-Activity. 3. INP Innovation Fund 3.1 What is the INP Innovation Fund For? The purpose of the INP Innovation Fund is to provide a platform of funding that can be used to contribute to improvements (See 3.2 below) in the indigenous natural products industry that are essential to ensure both the short- and long-term competitiveness of Namibian indigenous natural products in the global market place. Global market demand is growing, and with this come rapidly changing market standards and requirements. It is therefore critical for Namibia s emerging indigenous natural products industry to invest strategically in capacities that enable its stakeholders, especially PPOs, to keep pace with market developments. The INP Innovation Fund affords the Namibian indigenous natural products industry the opportunity to be a leader in the global market through a pipeline of new indigenous natural product applications and products, cost effective processing technologies and value adding in Namibia. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 2

8 The overarching objective of this strategy is to increase incomes to a large number of beneficiaries in the indigenous natural products value chain, and to ensure continued growth in the sector by investing in new product applications and processing innovations. INP Innovation Grants will be made available to research entities, academic institutions, the private sector, Government of the Republic of Namibia (GRN) agencies, NGOs and CBOs for new product platforms, extraction and refinement innovations, the development and promotion of improved techniques 1 for processing, product analysis and regulatory compliance. The INP Innovation Fund will provide investments in these areas that would otherwise not be immediately financially viable, but which could in time prove to be economically viable, with the potential for significant benefit streams. Grants awarded by the INP Innovation Fund are intended solely to further the indigenous natural products sector in Namibia through applied research and development; they are not intended for project implementation activities. 3.2 Priority Research Themes Applications to the INP Innovation Fund must be consistent with the objectives of the MCA-N Compact (the agreement between the United States (US) Federal Government and the GRN) and the IPTT pipeline approach. 2 Applicants will have to demonstrate how the proposed Actions will add value to existing knowledge that will enable, for example, improved processing or marketing of a product. Research or Actions directed at contributing to improved sustainability and positive environmental impacts will also be considered a priority. Furthermore, a proposed Action must identify and demonstrate a benefit stream that is commensurate with the Grant amount. In line with this, the following priority research areas are offered as examples of Actions that have been identified for potential support through the INP Innovation Fund. There is a degree of flexibility that allows for the consideration of highly innovative Actions that may fall outside of these priority areas but nevertheless contribute to the objectives of the MCA-N INP Activity and the overall goal of MCA-N Product Use Innovations Proposals may include the delivery of applied research and technical advances for new applications of indigenous natural product ingredients that can be shared with the industry for market expansion of current indigenous natural product value chains. For example, a service provider could be tasked with developing a portfolio of cosmetic formulations combining a variety of Namibian indigenous natural product ingredients, which could then be marketed to potential industrial users as a package deal along with an assured and traceable raw material supply chain New Indigenous Natural Product Platforms Proposals may be used to request research and testing of underdeveloped indigenous natural product opportunities to discover new market entrants that offer additional income opportunities for PPOs. For example, the Action or Actions proposed could revolve around undertaking preliminary research (e.g. resource surveys, research into sustainability aspects including harvesting 1 Improved techniques are not protected by trademark, patent or copyright and are in the public domain; anyone can therefore produce or distribute them. 2 The pipeline approach is a strategic plan to proactively create sustainable economic opportunities in the trade of indigenous natural products in Namibia; it prioritises indigenous natural products with large and readily accessible market potential and promotes their commercial development through a strategy that addresses the entire value chain through partnerships with the private sector. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 3

9 protocols, processing and storage) needed in order to bring a new product to a point where PPOs are in a position to take advantage of it. An additional example could be a programmatic approach to extracting, analysing, evaluating (with industry partners) and business planning for essential oils from indigenous plants that have yet to be commercialised Extraction and Refinement Innovations Proposals to invent, improve and test the efficacy of new technologies for value adding to current and newly discovered indigenous natural products. Examples could include developing costeffective methods and/or equipment to extract value from the various press cake residues left after oil extraction. There will be a cost-share requirement for such Actions set at a minimum of 20% of total costs to be borne by the Grantee Product Analysis A certified laboratory (or laboratories) may be tasked with providing routine analysis in Namibia to open access for processed indigenous natural products to the ready to formulate market, thereby allowing them to command a substantial premium. Examples could include ISO (International Organisation for Standardisation) -certified high performance liquid chromatography analysis of harpagoside levels in devil s claw; gas chromatography analysis of fatty acid profiles; or microbiological batch tests on ingredients before export. A possible proposal would be to develop an agreement per laboratory to provide priority services at a reduced rate over a predetermined period during market development Regulatory Compliance Proposals may be developed to spearhead the complicated process of consumer plant use registration in new markets, which is critical for market entry. The registration is for a type of product which benefits the entire industry and is not for the benefit of a single firm. Examples could include registering a new cosmetic ingredient with INCI (International Nomenclature for Cosmetic Ingredients), or a new essential oil for REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) -compliance in the European Union (EU), or an established indigenous food product for compliance with EU Novel Food regulations, or in the US for the Food and Drug Administration s GRAS (Generally Recognised as Safe) designation Certification Proposals may be developed to support increased certification (organic or fair trade) of Namibian indigenous natural products, and in particular cost benefit analyses of undertaking such initiatives Market Development Proposals that investigate unblocking bottlenecks with reference to existing or emerging markets and new and innovative marketing initiatives that raise the profile of Namibian indigenous natural products will also be considered. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 4

10 3.2.8 Policy Review and Development In many cases, some of the issues related to the development of the indigenous natural products sector in Namibia cannot be resolved solely by technological innovations. Proposals seeking support for policy review and development that seek to align cross-cutting issues at a PPO level will consequently also be considered. 3.3 Grant Thresholds, Budgets and Mechanism Grant Thresholds As a general guideline, Applications for Grants should fall between a minimum of one-hundred-andfifty thousand Namibia Dollars (N$ ) and a maximum of two-million-five-hundred thousand Namibia Dollars (N$ ). In exceptional circumstances, however, where the anticipated benefit stream justifies the proposed Action, amounts outside of this range may be considered. It is anticipated that there will be a minimum of three (3) public Calls for Concept Papers; if permitted by the budget and timeframe, additional Calls may be considered. The Call for Concept Papers will be advertised on the MCA-N website, in the print media and through the IPTT. Each public Call for Concept Papers will clearly indicate the deadline for the submission and the method and place for delivery. Please see point below for additional information Grant Proposal Budgets A complete budget must be presented, with adequate cost information tied to key deliverables and a timeline provided in the Full Proposal Application Form to allow MCA-N to determine if the proposed costs are in line with key deliverables, industry norms and the fixed price of the Grant. All Activities or associated Activities in the proposed initiative must be fully funded Grant Mechanism All Grant awards under the INP Innovation Fund shall be in the form of Fixed Obligation Grants. A generic INP Innovation Fund Grant Agreement is attached to this Grant Manual as Appendix III. The total budget will be paid in equally sized tranches based on the completion of key objectives/targets and deliverables. In exceptional cases and based on technical justification, these payments can be of different sizes. Tranche payments will occur upon the submission of the inception report, midway through implementation and at the completion of the Action(s). Each tranche payment will be contingent on successfully meeting the deliverables of the tranche period and on approval of the technical and financial reports for the period. A Financial Plan will be attached to the Grant Agreement which will indicate the schedule for reporting and payments to be made against agreedupon deliverables. Grant closeout is accomplished by MCA-N s acceptance of the final deliverable and approval of the payment. 3.4 Intellectual Property Subject to certain requirements more explicitly described in Section 5.2 in the Grant Agreement attached hereto as Appendix III, the right, title and interest in any work, device, instrument, composition of matter, design, machine, manufacture or process or any other tangible or intangible property arising in connection with or acquired using Grant Funds from the MCA-N INP Innovation Fund (herein called the Funded Intellectual Property ) shall vest in the Grantee, and the Grantee may therefore, register or otherwise secure its right, title and interest therein in accordance with MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 5

11 applicable law, except that a Grant Agreement may provide otherwise: (i) when it is determined that the restriction or elimination of the right to title is necessary to protect the national security interests of the Government of the Republic of Namibia or (ii) in exceptional circumstances when it is determined by the Grantor that restriction or elimination of the right to title will better promote the policies and objectives of the Grantor. If the Grantee does not retain title to Funded Intellectual Property either by agreement or by failing to so elect, title to the Funded Intellectual Property automatically will be ceded to and reside in the Grantor. In addition, Grantee shall cede a royalty-free, non-exclusive, irrevocable, paid-up licence to the Grantor (on behalf of the Government of the Republic of Namibia) in any Funded Intellectual Property to practice or have practiced for or on their respective behalves any Funded Intellectual Property throughout the world, including but not limited to the right to produce, reproduce, publish, or otherwise use any and all Funded Intellectual Property for their individual purposes, which licence shall include the right to authorise third parties to reproduce, publish, or otherwise use any and all Funded Intellectual Property, provided that the latter right shall only be exercised after comprehensive consultation between the Grantor and the Grantee. 4. Rules for Applications These guidelines set out the rules for the submission, selection and implementation of the Actions to be financed under the INP Innovation Fund, in conformity with the provisions set out by both the Millennium Challenge Corporation (MCC) and MCA-N. The process for applying to the INP Innovation Fund will involve an initial submission of a Concept Paper, whereafter, if approved, a Full Proposal will have to be submitted. 4.1 Eligibility Criteria There are three sets of eligibility criteria, relating to: i. Eligible Applicants (organisations which may request a Grant); ii. Eligible Actions (Actions for which a Grant may be awarded); and iii. Ineligible Actions (types of costs which may be taken into account in setting the budget amount for the Grant request) Eligible Applicants Eligible Applicants include research entities, academic institutions, private sector parties, GRN agencies, NGOs and CBOs. With reference to the above, the following apply: In the case of consortiums, the Applicants should clearly identify the entity which will function as lead partner for the purposes of the Grant Agreement and compliance with all requirements, as set forth in this Manual and the Grant Agreement. In addition, consortiums must ensure that the partnership statement is completed in full and signed by each participant. In the case of foreign-based Applicants, collaborative partnerships with Namibian entities are encouraged, although they are not a prerequisite. The Applicants will need to demonstrate that they are financially responsible. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 6

12 The Applicants will have to allow MCA-N to establish eligibility by fully completing the eligibility portion of the Concept Paper and cooperating with interviews and site visits by MCA-N or MCC staff, if requested. The Applicants will have to have an authorised bank account. The following entities are NOT eligible for funding from the INP Innovation Fund: Individuals; Political parties, groups or institutions, or their subsidiaries and affiliates; Organisations that advocate, promote or espouse anti-democratic policies or illegal activities; and Any person or entity that has been blacklisted from participation in procurements funded with World Bank assistance or debarred or suspended from participation in procurements funded by the US Federal Government or otherwise prohibited by applicable US law or Executive Order or US policies, including under any then-existing anti-terrorist policies. Without limiting the foregoing, this would remove from eligibility any Applicant from a country or from a firm that is organised in or has its principle place of business in or a significant portion of its operations in any country that is subject to sanction or restriction by US law or policy (an Ineligible Country ). Refer to the MCC website ( for further information in this regard Eligible Actions Duration The maximum duration for Grants awarded under the INP Innovation Fund will be twenty-four (24) months. All Actions related to Grants awarded through the INP Innovation Fund will have to be completed by the end of May Research Themes and Eligible Actions Only Actions that support the overall objective of the INP Innovation Fund and are in line with the examples of the research themes described in 3.2 above will be considered for approval for an INP Innovation Fund Grant. In order for the Action to be considered as eligible, Applicants must be able to demonstrate that the proposed Actions are in the public good. In addition, and with reference to the above, Actions will only be considered eligible if the following aspects with regard to GRN research permits, material transfer agreements and bio-prospecting policies and/or regulations have been complied with: As determined by the Nature Conservation Ordinance (Act 4 of 1975 as amended in 1996), the Research Policy of the Ministry of Environment and Tourism (MET) requires that a research permit be issued to collect and conduct research on biological specimens; depending on the area where the research is to take place, additional review processes of the Application might be necessary. Prospective Applicants are therefore encouraged to determine whether the research/actions/activities require that a research permit be issued by MET through the Directorate of Scientific Services. Please note that a standard Application Form is available from MET and that particular reporting procedures are applicable. Further information is available at the Directorate of Scientific Services sub-division Permit Office on Tel: +264 (61) , or via MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 7

13 to It is advisable that Applicants who require research permits apply for these permits at the same time as they submit the Full Proposal. The final approval of a Grant will be conditional on the issuing of a research permit. In addition, it is a requirement for research on botanical resources that a Material Transfer Agreement be signed between the prospective researcher and the NBRI, which falls under the MAWF. Further information can be obtained from the Plant Product Development Section of the NBRI, via to stevec@nbri.org.na. Furthermore, an Interim Bio-Prospecting Committee was established through a Cabinet Decision (September 2007) to evaluate and monitor any potential bio-prospecting activities in Namibia, particularly those which may have commercial application. Potential research under the INP Innovation Fund might require approval by the Interim Bio-Prospecting Committee. Further information in this regard can be obtained from the Directorate of Scientific Services sub-division Permit Office on Tel: +264 (61) , or via to tuahengo@met.na, or from the Directorate of Environmental Affairs on Tel: +264 (61) Ineligible Actions The following Actions will NOT be eligible for Grants through the INP Innovation Fund: i. Any specific Actions that are already funded through other mechanisms; ii. iii. iv. Any individual sponsorships for participation in workshops, seminars, conferences or congresses; Any individual scholarships for studies or training courses; Actions that are inconsistent with international standards of human rights, or with democratic goals of racial and ethnic tolerance and harmony; v. Actions that are reasonably likely to involve the relocation or expansion outside of the US of an enterprise located in the US if non-us production in such relocation or expansion replaces some or all of the production of, and reduces the number of employees at, said enterprise in the US; vi. vii. viii. ix. Actions that contribute to the establishment or development of any export processing zone or designated area in Namibia where the labour, environmental, tax, tariff and safety laws of Namibia would not apply; Actions that contribute to the violation of internationally recognised rights of workers in the recipient country, including those in any designated zone or area in that country; Actions that are likely to cause a significant environmental, health or safety hazard, as defined by the MCC and the GRN s environmental guidelines and legislation; Actions that involve the production, procurement or intentional release of: Persistent Organic Pollutants that the United States Environmental Protection Agency has identified as of greatest concern to the global community; MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 8

14 Any pesticide or industrial or consumer chemical that is listed by the United States Environmental Protection Agency as banned or severely restricted under the Prior Informed Consent Programme; 4 or A product (including an emission or effluent) that is prohibited or strictly regulated in the US because its toxic effects on the environment create a serious public health risk; and x. Any other Action that would violate the restriction on the use of MCC Funding set forth in Section 2.3 of the MCA Compact Number of Proposals and Grants per Applicant An Applicant may submit more than one Concept Paper per Call for Concepts and an Applicant may be awarded more than one Grant under the INP Innovation Fund. However, Applicants will have to clearly demonstrate their capacity to be able to undertake more than one Action simultaneously Eligibility of Costs Except in the case of above, which requires a 20% cost-sharing contribution on the part of the Applicant, all other Actions for which Grants are awarded will be 100% funded. The proposed budget for the Action is both a cost estimate and a ceiling for Allowable Costs. These costs must be based on itemised real costs; lump sum amounts will not be accepted, except in the case of Allowable Indirect Costs. It should be noted that recommendations to award an INP Innovation Fund Grant will be subject to the condition that the price reasonableness/checking process preceding the signing of the contract does not reveal any problems requiring changes to the budget. This may delay the process or even lead to the MCA-N imposing reductions on the budget. It is therefore vitally important that the Applicant provides a realistic and cost-effective budget following the budget format provided in the Full Proposal Application Form. Only the Allowable Costs detailed below can be taken into account for Grants under the INP Innovation Fund. Allowable Costs The following is a list of Allowable Costs subject to approval by MCA-N to the extent that such costs are related to the implementation of the proposed Actions: i. Professional fees; ii. iii. Labour of project staff as per approved work plan; Honoraria: Pursuant to MCC regulations, only nominal and occasional payment of honoraria to GRN employees 5 may be made for project-related activities, provided that such payments are clearly for functions outside the employees normal duties and do not take place during normal working hours or otherwise conflict with official duties. Honoraria may be paid to university employees and to members of research institutions who are employees of the A GRN employee is an employee paid by the GRN, occupying an established position, either temporary or permanent, part-time or fulltime, within a GRN institution. A GRN institution is an organisation in which the GRN owns at least a fifty percent share or which receives at least fifty percent of its financial support from the GRN. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 9

15 GRN solely by virtue of their position in a university or research institution, for carrying out project-related activities outside their normal duties, where the normal practice of the GRN condones this type of additional work. Frequent recurring payments for all types of GRN employees are prohibited; iv. Professional materials (e.g. reference materials), non-periodical publications, and data; v. Transportation and per diem costs as necessary; vi. vii. viii. ix. Communication costs, including internet use, related to the Actions; Printing, publication and dissemination costs; Honoraria to non-employee project participants, such as survey respondents; Costs of specific purchases or activities deemed necessary and included in the budget and approved in the Grant Agreement (e.g. equipment, supplies, training materials, workshops, etc); and x. Administrative overheads: A lump sum not exceeding 10% of the direct Allowable Costs of the Action/s may be claimed as indirect costs to cover the administrative overheads incurred by the lead Applicant of the Action/s. Non-Allowable Costs The following is a list of Non-Allowable Costs: i. The creation of endowments; ii. iii. iv. Any previous obligations by the GRN to the Grantee; Bad debts of the Grantee; Fines imposed on the Grantee; v. Penalties imposed on the Grantee; vi. vii. viii. ix. Ceremonies, parties, celebrations or representation expenses; Purchases of goods or services that have their origin in countries that may be identified by the US Government consolidated list of debarred, suspended or ineligible contractors; Profit; Labour costs for GRN employees and state-funded university and research institute employees; x. Any expenses related to goods or activities that are illegal under Namibian or US law; xi. xii. The purchase of vehicles; and Any purchases or activities not necessary for accomplishing the Grant purpose as determined by MCA-N. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 10

16 5. Application Procedures 5.1 How to Apply, and the Procedures to Follow MCA-N will publicly advertise Calls for Concept Papers to provide all potential and eligible Applicants with an equal opportunity to access Grants from the INP Innovation Fund. Prospective Applicants will be invited to submit Concept Papers for consideration. Following the evaluation of these Concept Papers by the INP Innovation Fund Grants Evaluation Committee (GEC), successful Applicants will be notified to prepare a Full Proposal for submission. The Full Proposals will also be evaluated by the INP Innovation Fund GEC for final Grant selection. The timing of this process and the evaluation criteria are detailed in Section 6 below. Please note that final approval of the awarding of an INP Innovation Fund Grant rests with MCA-N. It is permissible for Applicants to sub-contract with another entity or entities for the purposes of enhancing the expertise and capacity for the implementation of the proposed Action. All Applications must be in the English language; no hand-written Applications will be accepted. Concept Papers and Full Proposals must be submitted on the Application Forms annexed to these Guidelines (Appendix I and II). The Application Forms are also available on the MCA-N website at Further instructions with respect to the submission of both the Concept Papers and the Full Proposal are contained in these Application Forms. Applicants should strictly adhere to the format of the appropriate Application Form and fill in the pages in order. Please complete the Application Form carefully and as clearly as possible so that it can be properly assessed. Be precise, and provide enough detail to ensure that the Application is clear, particularly regarding how the aims of the Action will be achieved, the benefit stream and the way in which it is relevant to the INP Activity objectives Supporting Documentation The required supporting documentation must be attached to the submission of both Concept Papers and Full Proposals, as detailed below. Please note that not all documentation is being requested, but in the event that the evaluation panel, MCA-N or MCC deems it necessary to request such documentation, it must be made available in a timely manner. It is therefore important that the information provided by the Applicant is complete and correct. Concept Papers The following supporting documentation must be submitted together with the Concept Paper: i. The Eligibility Statement requested in 2.7 of the Concept Paper Application Form; and ii. Summary financial statements covering the last three (3) years. Full Proposals The following documentation must be submitted together with the Full Proposal by the Applicant: i. The statutes or articles of association of the Applicant organisation and, where appropriate, of each partner organisation (this must also include the official registration certificate); MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 11

17 ii. iii. iv. Previous/related experience of the organisation and partners where applicable as it pertains to the proposed Actions; The curriculum vitae of each person to be involved in the proposed Action (including those of the proposed partners) and an indication of how it pertains to the proposed Action; and Copies of the MET research permit application, Material Transfer Agreement and other documentation, if applicable. The supporting documents requested must be supplied in the form of originals or photocopies certified as true by an authorised independent body. Where such documents are in a language other than the language of the Call for Concept Papers, a faithful translation into English must be attached; this will prevail for the purposes of interpreting the proposal Submission of Concept Papers OR Full Proposals Applications must be received in sealed envelopes by registered mail, courier or hand-delivery (a signed and dated certificate of receipt will be given to the deliverer) at the address below: Postal address INP Innovation Fund MCA Namibia P.O. Box Windhoek, Namibia Address for hand delivery INP Innovation Fund Atlas House Corner of Sam Nujoma Drive and Mandume Ndemufayo Avenue Windhoek, Namibia Delivery by courier service Same as for hand delivery Applications sent by any other means (e.g. by fax or by ) or delivered to other addresses will be rejected. Original Applications (Application Form and supporting documents) must be submitted together with three copies; AND in electronic format (virus-free CD-Rom, MS WORD/MS EXCEL or compatible/ equivalent, format clearly indicated). The outer envelope must bear the reference number of the Call for Concept Papers or the Call for Full Proposals, the full name and address of the Applicant, and the words Not to be opened before the opening session. Applicants should verify that their Applications are complete by comparing them with the checklist included with the Application Form. Deadline for Receipt of Applications The deadline for the receipt of Concept Papers will be indicated in the public Call for Concept Papers for that particular round. The deadline for the submission of Full Proposals will be communicated to Applicants who are invited to prepare Full Proposals. Any Application received after the deadline MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 12

18 will be automatically rejected, even if the postmark indicates a date preceding the deadline, and even if the delay is due to the courier service. Further Information Any queries related to the Call for Concept Papers or Full Proposals can be directed to the Agriculture Grant Manager at agricfund@mcanamibia.org, or Tel : +264 (61) Questions that may be relevant to other Applicants, together with the answers, will be published on the MCA-N website ( Applicants are advised to consult these questions and answers regularly. Acknowledgement of Receipt Following the opening of submitted Applications (Concept Papers and Full Proposals), MCA-N will send an electronic receipt to all Applicants indicating whether or not their Application was received prior to the deadline and informing them of the reference number they have been allocated. 6. Evaluation and Selection of Applications 6.1 Timeframe and Process The follow table provides an indicative timeframe from the submission of Concepts Papers to Grant contract signature. ACTIVITY / ACTION Submission of Concept Papers Evaluation of Concept Papers Approval of short-listed Concept Papers Development of Full Proposals and submission GEC evaluation of Full Proposals Develop Technical Evaluation Report (TER) Approval of TER Grant Agreement Negotiations (this will include a verification of costs for reasonableness and eligibility as well as refinement of the Monitoring and Evaluation Plan, Work Plan, Environmental and Social Mitigation Plan (if applicable) and other aspects of the Proposal) Approval of Grant Agreement TIMEFRAME 4 weeks after public Call for Concepts Papers 2 weeks 2 weeks 4 weeks from date of notification 3 weeks from date of submission 1 week 1 week 4 weeks from approval date 2 weeks The Grant Manager will ensure that the Applications (for both the Concept Papers and Full Proposals) comply with the administrative requirements and the eligibility criteria. Applications that do not comply will not be evaluated further. The Applications will then be reviewed by the Grant MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 13

19 Evaluation Committee, who will recommend a short-list of Concept Papers for further consideration. The following will then take place with respect to the recommended short-listed Concept Papers: 1. A document containing Concept Papers Summaries (10 15 lines each) of the recommended Concept Papers will be compiled. The Applicant s name and Budget for the proposed Action will NOT appear in this document. 2. This summary document will then be sent to the voting members of the IPTT. This review will focus only on the following two (2) criteria: i. Is there any duplication of the proposed Action/s? ii. Is the proposed Action relevant and consistent with national strategy? The IPTT voting members will be given two working days to respond. Concept Paper Summaries of Concept Papers submitted by any of these IPTT members themselves or by any organisation closely associated with a member (i.e. the voting member of the IPTT is an employee or a member of the organisation submitting a concept proposal or has direct financial links to this organisation) will NOT be sent to the relevant IPTT voting member for review. If any issues are raised through this IPTT voting member review, these issues will have to be verified by the GEC. Any issues with some validity will be submitted together with the Concept Papers when these are submitted for approval. On approval, the successful applicants will be requested to proceed with the preparation of Full Proposals for submission. Full Proposals will be evaluated by the GEC, who will prepare a Technical Evaluation Report (TER) which will be submitted for approval. On approval of the TER, Applicants will be invited to enter into Grant Agreement Negotiations. This process may involve aspects such as modifying some content of the proposal and revising the Budget and the Monitoring and Evaluation Plan. Once this process has been completed, the Full Proposal and the Grant Agreement will be submitted for final approval and signature. 6.2 Composition of the Grant Evaluation Committee MCA-N will set up an INP Innovation Fund GEC to evaluate both Concept Papers and Full Proposals. The INP Innovation Fund GEC will be comprised of three (3) members, one from MCA-N, one from GRN and the other an independent consultant. To back up the GEC on technical aspects, the GEC may make use of one or more external consultant(s). 6.3 Evaluation Criteria All Applications (both the Concept Papers and the Full Proposals) will be examined and evaluated by the INP Innovation Fund GEC, possibly with the assistance of external assessors. It should be noted, however, that the final decision of whether to approve a Concept Paper or award a Grant rests entirely with MCA-N. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 14

20 Both the Concept Paper and Full Proposal submitted by Applicants will be assessed according to the following main criteria: i. Administrative compliance That the Application is fully completed and the required supporting documentation is attached. ii. Eligibility of the Actions, Applicants and partners That the Applicant, the partners (and the associates where applicable) and the proposed Action are in accordance with the criteria set out in Section 4. iii. Evaluation of the quality of the proposed organisation/team, technical proposal and financial evaluation If either the Concept Paper or the Full Proposal does not comply with either the Administrative Compliance or the eligibility criteria set out in i) or ii) above, they will not be evaluated further. An evaluation of the quality of proposals, including the proposed budget, will be carried out in accordance with the evaluation criteria for Concept Papers and Full Proposals set out in the Evaluation Grids presented at the end of this section. There are two types of evaluation criteria, namely selection and award criteria. The selection criteria are intended to help evaluate the Applicants organisation/team and financial and operational capacity to ensure that they: Have the organisational and financial capacity to implement the proposed Action/Activity; and Have the professional competencies and qualifications required to successfully complete the proposed Action (this also applies to any partners of the Applicant). The award criteria allow for the evaluation of the quality of the technical proposals submitted in relation to objectives and priorities, and for Grants to be awarded to Actions which maximise the overall effectiveness of the INP Innovation Fund. They cover aspects related to the Action s relevance, consistency with the objectives of the INP Innovation Fund, quality, innovativeness, expected results and impact, beneficiaries, sustainability and cost-effectiveness Environmental Assessment The INP Activity has been categorised as a Category A Activity. 6 Although it is anticipated that the majority of Actions and/or Activities will contribute to improved conservation and sustainability of resources, it is likely that some Actions and/or Activities may have negative environmental impacts in either the short- or the long-term. Therefore, it is vitally important that due consideration be given to any potential impacts the proposed Actions/Activities might have. In this regard, it is a prerequisite that in both Concept Papers and Full Proposal Application Forms, the Environmental Assessment section is completed in as much detail as possible. 6 The INP Activity has been classified as a category A Activity because of its potential to have significant adverse environmental and social impacts as a result of the commercialisation of indigenous natural products. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 15

21 Please note that the information provided must be as truthful and reliable as possible. The Applicant is accountable for any inaccurate or misleading information that may be provided in this questionnaire. NB: Please further note that an Environmental Screening Tool will be designed as part of the initial work on the PPO Sub-Activity. It is possible that once that has been finalised, this section on environmental and social assessment could also change and be replaced by the updated Environmental Screening Tool Evaluation of Concept Papers All Concept Papers received within a Grants competition round will be recorded by MCA-N and Applicants will receive an acknowledgement of the receipt of the Concept Paper. The INP Innovation Fund GEC will screen each Concept Paper to verify that the proposed Action: i. Supports the objectives of the INP Innovation Fund; ii. iii. iv. Is not viable as a private undertaking on its own; Will lead to benefits for PPOs that exceed the costs; Is from an eligible Applicant with adequate financial and organisational capacity to implement Actions of this nature; and v. Does not have any significant non-mitigable environmental or social impacts. In order for a Concept Paper to be considered for development into a Full Proposal, all of the above questions must yield a YES response. All Applicants that have submitted Concept Papers will be notified as to whether their Concept Papers have been accepted or rejected. Some Applicants may be requested to revise their Concept Papers and submit them at the next Call for Concept Papers. The Grant Manager will serve as the primary contact person for all potential Applicants, and in addition will prepare the Concept Notes for evaluation by the INP Innovation Fund GEC. Please note that in NO way does the approval of the Concept Note and the request to submit a Full Proposal imply the automatic approval of the Full Proposal or the awarding of a Grant Evaluation of Full Proposals The following evaluation criteria will be applied by the INP Innovation Fund GEC in the evaluation of Full Proposals. For a Full Proposal to be considered for a Grant, a YES response is required for all the criteria listed in the evaluation grid below, unless otherwise stated. MCA-N INP Innovation Fund Grant Manual (27 th May 2010) Page 16