Request for Applications (RFA) ABADE-A

Transcription

1 ABADE Main Darulaman Road, District 6 Kabul Afghanistan Phone: +93 (0) February 10, 2014 Request for Applications (RFA) ABADE-A For the Assistance in Building Afghanistan by Developing Enterprises (ABADE) Program Component 1a: Small and Medium Enterprise Alliances Issuance Date : February 10, 2014 Closing Date : September 30, 2014 Total estimated funding : $7,000,000 Estimated number of awards : 100 Award limit : $150,000 Special provisions: 20% of funds under this RFA will be allocated to businesses that create substantive employment for women and youth, and 5% will be allocated to micro-enterprises that can demonstrate the potential to develop into SMEs. Proposals from individual citizens will not be reviewed. Public International Organizations (PIOs) and Local Governments are not eligible for ABADE awards unless special circumstances warrant specific approval by USAID to that effect. SME Alliance support is agreed case by case between the partners in the Alliance, which include one or more SMEs, ABADE, and USAID. ABADE and USAID together are generally willing to support up to a maximum of 33% of the investment need. The business partner must contribute the other 67% or more and this can be in the form of cash or other contributions like machinery, equipment, buildings and infrastructure, operating costs, or the like. Generally, a minimum of 25% of the leverage from the resource partners should be in the form of new investment (cash). Failure of an SME partner to provide the proposed leverage amount after an alliance has been funded can result in suspension or termination of the alliance.

2 Program Description The ABADE program is a USAID funded program to support the growth of the private sector, create more jobs for Afghans, and build stronger industries in Afghanistan. ABADE is designed to improve the lives of people in Afghanistan by helping Small and Medium Enterprises (SMEs) to grow their businesses and bring more jobs and income to local communities. If you have a business idea for expanding your current business, making better products, or creating new products and services, ABADE may be able to enter into a partnership (alliance) with you to help you reach your objectives. The main criteria for getting USAID support through ABADE Component 1a are: 1. The activity must support business growth and create jobs for Afghans. 2. You must have experience in running a business, be able to create a sound business plan, and be able to contribute to the costs of the activity. 3. You must have an operating, registered business, or be a member of a consortium of businesses. NOTE: The business must meet the definition of the International Finance Corporation. Micro, small and medium enterprises for the purposes of the project are: Micro-enterprises: up to 10 employees and total assets or total annual revenues of up to $100,000; small enterprises: up to 50 employees and total assets or total revenues of up to $3 million; and medium enterprises: up to 300 employees and total assets or total annual revenues of up to $15 million. Activities ABADE will consider for support can include but are not limited to the following: Assisting SMEs in expanding their operations and production Conducting feasibility studies, improving business operation and marketing strategies Creating partnerships to deliver important business services to the private sector Improving the value of products through better packaging, quality control, processing Increasing sales and finding new markets Facilitating investments and joint ventures Getting technical and business training. ABADE can provide many different types of support within the alliance. In all cases, applicants are required to contribute to part of the cost of the activity with ABADE as their partner, and be committed to put their time and efforts towards making the business a success. ABADE does not give cash assistance and cannot pay for your rent, utilities, your employees, or other day to day operating costs. ABADE support will be in-kind. That means ABADE delivers the assistance, Page 2 of 12

3 training, equipment or infrastructure improvements agreed on in the application. In general, cash transfers are never made directly to applicants, although under some awards ABADE may agree that organizations that demonstrate a sound procurement system at the pre-award review may purchase the goods or services that are approved by USAID in the application and ABADE will reimburse these costs. If you think you have a great idea which would create new jobs for many people and you need help in implementing this idea, you should apply for assistance using the Concept Note Form attached to this RFA. The information in this form will help ABADE decide which type of assistance is best for you. You do not need to specify the exact type of assistance when you submit your idea. If you submit a good idea ABADE staff will meet with you to discuss your plans and can help you decide what investments are the most appropriate for your business. Then you can submit a more complete final application when you have developed a detailed business plan. ABADE will be offering a number of workshops in different locations in Afghanistan to help business owners understand how to develop good business and financial plans. Attendance at a workshop is not a requirement to submit a Concept Note or complete application. Small and Medium Enterprise (SME) Alliances SME Alliances are defined as partnership agreements in which two or more partners jointly define an opportunity to create private sector growth and solution(s) to achieve the objectives of the partnership. An SME Alliance agreement involves shared risks, responsibilities, and rewards for the partners. Building an effective alliance requires a mutual understanding of the respective interests and priorities of each partner. In the case of one or more businesses partnering with ABADE, the risks and responsibilities are: Partner Risks Responsibilities Rewards SME Investing your own savings into a business always entails risk; if the business fails you may lose your investment. Careful planning and good management reduces these risks but cannot eliminate them entirely. The business owner(s) must be committed to making the business work. That means investing time, resources, and being willing to work with the other partners to build a well-managed, well operated company based on good business A growing, well managed business can generate more revenue, and be more profitable. The business owner(s) get the benefits of this and can keep the profits or re-invest them to further expand their businesses. Page 3 of 12

4 Partner Risks Responsibilities Rewards principles and meeting the needs of a clearly identified market or buyers. ABADE ABADE has been entrusted by USAID to identify and assist businesses with good growth potential, managed by people with good experience, skills, and strong commitment. If ABADE selects businesses that do not perform well, we have failed our mission and not made the best use of USAID funds that might have gone to other businesses. ABADE is responsible for selecting the best business ideas and businesses to assist, and providing them with the right advice, support, technical assistance, and investments to ensure that their business is a success. ABADE must ensure that businesses have good plans based on sound business principles, and manage USAID funds that might have gone to other businesses. ABADE s reward is the success of the business idea, increased employment opportunities for Afghans, and stronger businesses that are more profitable and sustainable. These successes are the fruits of the partnership that we are tasked by USAID to achieve. Your success means we have accomplished our mission. USAID USAID puts at risk the funds that are used to support the business and USAID is accountable for the use of these funds, which come from taxpayers in the United States. The risk is that the USAID s funds may not achieve the program's objectives, to create employment and incomes for Afghans. USAID is responsible for approval of PPA concepts and budgets, and for monitoring the performance of PPAs under the ABADE program. USAID s reward is the successful use of USAID funds to help businesses grow and create more jobs. If economic growth and employment targets are met, then USAID has accomplished part of its mission in Afghanistan. USAID reports these successes to representatives of the tax payers whose funds were used. Page 4 of 12

5 Micro-Enterprise Alliances Micro-Enterprise Alliances are similar to SME Alliances, but are reserved for a limited number of partnerships between USAID, ABADE and micro-enterprises. Qualified micro-enterprises are businesses that have fewer than 10 employees or total assets or annual revenues of less than 5,250,000 AFG currently, but have the potential to grow into small enterprises in partnership with ABADE. The requirements for a contribution to the partnership by the business are similar to those of a standard SME Alliance. Technical Assistance and Training If your business does not qualify for assistance under the SME Alliances program, you may still be able to get technical assistance or training support through ABADE. This is decided on a case by case basis, and for groups of SMEs with similar needs, we may organize technical assistance and training for groups of participants. Other Partnership Opportunities ABADE has issued an additional RFA that targets businesses and organizations that have new or innovative proposals that address workforce development (particularly youth); promotion of the role of women; and the use of science and technology in enhancing Afghanistan s development. Concept Note Submission This RFA is open continuously from October 1, 2013, to September 30, 2014, and Concept Notes can be submitted at any time within these dates. End date of each awarded agreement will be determined at time of award. Concept Notes may be submitted electronically with scanned signatures to: PPA Committee, PPA@ABADE.org Hard copy Concept Notes may be delivered to: PPA Committee, ABADE Office, Main Darul Aman Road, District #: 6, Street Number 14 (Next to Allowoddin High School), Kabul, Afghanistan. Concept Note Review If your Concept Note presents a good idea for helping to expand economic opportunities and for creating jobs, and you have a reasonable chance of being selected for assistance, ABADE will contact you within 21 working days to invite you to complete a more detailed application. ABADE Page 5 of 12

6 will take steps to ensure that reviewers do not have any conflicts of interest or the appearance of such with regard to the organizations whose applications are under review. ABADE cannot promise that funding will be approved after you submit a detailed application. However, ABADE will only contact you to make a full application if we think you have a good chance of getting an approval. If the reviewers determine that your proposed project is commercially bankable, they will work with you to develop the proposal for commercial submission. Next Steps A full application is submitted to ABADE and formally reviewed and due diligence and negotiations will be conducted (negotiation may include a request for a more detailed budget, clarifications, discussions of cost issues, etc.) before the application is submitted to the alliance committee for evaluation. If approval of both ABADE and USAID is provided, the award will move into a final negotiation stage. Upon successful completion of this stage, the award will be finalized, and a post award management plan will be created for each alliance to ensure that the award recipient will fulfil its requirements, and also receive any necessary technical assistance. All awards will be monitored on an on-going basis, and evaluated upon conclusion. While some applications will be rejected outright, some will be referred back to the applicant for improvements. In such cases, the ABADE team will assist with further development of the proposal. Disclaimer: 1) ABADE and USAID reserve the right to fund any or none of the applications received. 2) Networking and outreach activities performed by ABADE in connection with this RFA do not constitute a commitment on behalf of ABADE or USAID. 3) Even if your project has been selected for award, an agreement can only be prepared and signed after USAID approval for environmental impact, building structures, technical review and additional due diligence and certifications required under US law. The Standard Provisions for Non-U.S. Nongovernmental Recipients will apply to non-u.s. awardees. For U.S. organizations, 22 CFR 226, OMB Circulars, and the Standard Provisions for U.S. Nongovernmental Recipients will be applicable. Child Labor Prohibition ABADE neither engages in nor condones unlawful employment, or exploitation of children in the workplace. Consistent with Afghan labour law, the minimum age for full-time employment under this Award is 15 years of age. The minimum age for employment of individuals performing hazardous work under this Award is 18 years of age. Page 6 of 12

7 Conflict of Interest During the review and implementation process of PPAs, ABADE reserves the right to investigate an application or PPA due to any real or perceived conflict of interest. In the event that ABADE determines that a conflict of interest exists, ABADE may disqualify an application or terminate a PPA. Language English is the official language of all award documents because a translation may not convey the full meaning of the original. If an award or any supporting documents are provided in both English and a foreign language, each document must state that the English language version is the controlling version. Fraud At no time is it appropriate or legal for applicants or awardees to offer any ABADE staff member commissions, kickbacks, or gifts of any kind. If an ABADE employee is found taking commissions, kickbacks, gifts or engaging in fraud of any kind their employment contract with ABADE will be immediately terminated and their name will be given to the USG RIG auditors to prevent future employment on any other USG funded project. ABADE s policy against fraud exists throughout the life of the award and beyond. Even after the award is closed, any party who is found guilty of fraud will be investigated by USAID Inspector General s Office and will be prosecuted to the fullest extent of the law. To report cases of suspected fraud please contact ABADEHotline@abade.org or please call Tel # Page 7 of 12

8 Assistance in Building Afghanistan by Developing Enterprises (ABADE) CONCEPT NOTE for Small and Medium Enterprise Alliances 1. Overview Company Name: AISA Registration Number: Date of AISA Registration: Company Address: Contact Person Name: Contact Person Mobile Number: Contact Person Date Concept Note Submitted: Instructions for Completing Your Concept Note: This ABADE SME Investment Concept Note Template will help you to provide an overview of your current business and a short description of your planned investment to the ABADE team. It is important to get this information right as the information you provide in this Concept Note will be used to determine whether your company is eligible to apply for a PPA for your particular planned investment. The Concept Note consists of five sections. Please complete them all. To complete this Concept Note Worksheet you should: Write your answers in the box next to the questions as you will not be able to change any of the other text. When you are answering questions, try to be as brief as possible and only provide information that is relevant to the question set. Please follow the guidelines on the amount of information that should be included. Answer all sections and if you do not have an answer for a question, please write None or N/A. Page 8 of 12

9 2. Planned Investment Please write a short description of your planned investment. What kind of business is it? [No more than five sentences]: Please describe all of the new products and/or services that your company will sell after the new investment has been made [no more than five sentences]: Please describe what new processes or new technology your company needs to make this investment succeed. Do not list specific items of new equipment; instead identify the steps for making the new product or service. [no more than half a page]: 3. Background / Rational Why do you think the investment is needed, is innovative or is a good business idea? Try to think of the particular problem you will solve or the actual business opportunity you have [no more than five sentences]: Please estimate the number of new direct jobs that will be created by the new investment, and estimate separately the number of indirect jobs: If your investment plans will specifically create jobs for women / youth please provide details of this below: Page 9 of 12

10 Have you ever tried to get a loan from any banks or financing from other agencies for this investment? Choose an item. If yes please list the banks or agencies you approached and what the outcome was [no more than five sentences]: How long will it take for the whole investment to be completed (when will the products and services be available?): 4. Project Partners: Provide a short description of your company. Include how your company was started and describe all the types of business your company is currently involved in [no more than five sentences]: How many other companies or organizations, both Afghan & International, will there be in the project [do not include ABADE]? Choose an item. Provide the names of each of the partnering companies and say if they are Afghan or International. Provide a short description of each of the partner companies. Describe all the types of business these companies are currently involved in, and explain their experience in this business [one or two sentences for each company.]: Page 10 of 12

11 Describe the role of each of the partners in the investment. What responsibilities will each partner have in implementing the investment? What is their role in the business after the investment is completed? 5. Investment Budget: Please provide a detailed list of items that your company and partners will be contributing to the investment and the items that you are requesting from ABADE. You must state whether each item you plan to invest will be a new item. Description of Investment Item Amount to be Invested by the Company Amount to be Invested by Partner Companies Is the item a New Investment Amount of ABADE Investment Requested Total Investment Amount (USD) (USD) (Yes or No) (USD) (USD) a) Capital Costs/Expenses Capital costs are for fixed, one-time expenses, such as buying land, constructing buildings and purchasing equipment. Page 11 of 12

12 Sub-Total b) Operational Costs/Expenses Operational costs are on-going costs such as staff salaries, and staff training, surveying etc. Sub-Total Total Investment Cost (a+b) Enter Amount Enter Amount Enter Amount Enter Amount Notes: ABADE will not fund/support operational expenses, raw materials, vehicles (except for those used in an industrial non-road setting), primary agriculture and used equipment. Submission of a Concept Note does not in any way constitute an agreement for further support by ABADE. ABADE reserves the right to edit the content of Concept Notes as applicable. Page 12 of 12