INVITATION TO SUBMIT FULL PARTNERSHIP PROPOSALS FOR SUSTAINABLE COCOA PARTNERSHIPS

Transcription

1 MILLENNIUM CHALLENGE ACCOUNT - INDONESIA Green Prosperity Partnership Grants INVITATION TO SUBMIT FULL PARTNERSHIP PROPOSALS FOR SUSTAINABLE COCOA PARTNERSHIPS MCA - INDONESIA MR21 Building, 11 th Floor Jalan Menteng Raya No. 21, Jakarta 10340, Indonesia T: (central) F:

2 Acronyms and Abbreviations CfP EOI ERR EIA EMP ESIA ESMS ESPD FGD GHG GOI GP GP Facility IC IDR IFC IP KII LARAP LOE MCA-Indonesia MCC M&E MoU NDA NRM PLUP PMC PMP RCM SGIP TAP TAPP TBD TOR TIP USD Call for Proposal Expression of Interest Economic Rate of Return Environmental Impact Assessment Environmental Management Plan Environmental and Social Impact Assessment Environmental and Social Management System Environmental and Social Performance Datasheet Focused Group Discussion Green House Gas Government of Indonesia Green Prosperity Green Prosperity Facility Investment Committee Indonesia Rupiah International Finance Corporation Indigenous People Key Informant Interview Land Acquisition and Resettlement Action Plan Level of Effort Millennium Challenge Account - Indonesia Millennium Challenge Corporation Monitoring and Evaluation Memorandum of Understanding Non-Disclosure Agreement Natural Resource Management Participatory Land Use Planning Project Management Consultant Program Management Plan Resident Country Mission Social and Gender Integration Plan Technical Appraisal Panel Technical Assistance & Project Preparation To be Determined Terms of Reference Trafficking in Persons United State Dollar 1 P a g e

3 TABLE OF CONTENTS I. Introduction... 3 II. Partnership Proposal Requirements... 4 III. Evaluation Criteria for Partnership Proposals... 5 IV. Submission Instructions... 7 Annex 1 Partnership Proposal Requirements Executive Summary Project Management Arrangement and Structure Description of the Project Project Rationale and Objectives Technical Approach Description of Beneficiaries and Social and Gender Assessment Sustainability and Scalability Project Implementation Plan, Project Budget, and Deliverables Project Implementation Plan Project Budget Environmental and Social Management System Social and Gender Integration Monitoring & Evaluation Monitoring and Evaluation Impact Evaluation and Research Questions Economic Analysis Datasheet Applicant Information Annex 2 Overview of Grants Management Process Grant Financial Management and Accounting Reporting Requirements Role of the Project Management Consultant (PMC) Role of the Investment Committee Disbursement Process and Timeline Geographic Focus and MOUs Annex 3 Social and Gender Assessment Annex 4 Environmental and Social Performance Datasheet (ESPD) Annex 5 Project Implementation Plan Template Annex 6A Project Budget Template Annex 6B List of Potential Assets Annex 7 MCA-Indonesia's Cost Principles for Partnership Grants / Details on Co-Funding Requirements P a g e

4 INVITATION TO SUBMIT FULL PARTNERSHIP PROPOSALS FOR THE SUSTAINABLE COCOA PARTNERSHIP I. Introduction The Millennium Challenge Corporation ( MCC ) and the Government of Indonesia ( Government ) have entered into a Millennium Challenge Compact for Millennium Challenge Account assistance to help facilitate poverty reduction through economic growth in Indonesia on November 19, 2011, (the Compact ) in the amount of approximately US$600,000,000 ( MCC Funding ). The Government, acting through MCA-Indonesia, intends to apply a portion of the proceeds of MCC Funding to successful Eligible Applicant. Disbursement of MCC Funding will be subject, in all respects, to the terms and conditions of the Compact and related documents, including restrictions on the use, and conditions to disbursement, of MCC Funding. No party other than the Government and the Millennium Challenge Account Indonesia ( MCA- Indonesia ) shall derive any rights from the Compact or have any claim to the proceeds of MCC Funding. A Call for Expression of Interest ( EOI ) for Sustainable Cocoa Partnerships was released on July 3, 2014 by MCA-Indonesia as the first step in MCA-Indonesia s efforts to develop Sustainable Cocoa Partnership Grant Agreements. The Call for EOI outlined a two-stage process in which interested parties should submit an EOI in accordance with detailed instructions from MCA-Indonesia. The EOI and its accompanying Concept Note would outline an approach and demonstrate ability to meet basic eligibility criteria and co-funding requirements under the proposed partnerships. After receipt, screening and appraisal of the EOI (consisting of Cover Letter and Concept Note), MCA-Indonesia would select those EOIs that in its sole discretion passed the minimum requirements and invited the shortlisted applicants to develop and submit full partnership proposals ( Partnership Proposal ). As part of the two-stage appraisal and selection process outlined in the Call for EOIs, MCA- Indonesia convened a Technical Appraisal Panel ( TAP ) on September 2-4, 2014 to evaluate submitted EOI and related Concept Notes. As a result of the TAP s deliberations, this Invitation to Submit Full Partnership Proposal for Sustainable Cocoa Partnership is being released to the Shortlisted Applicants, i.e. those organizations/consortia whose EOI s: 1) passed a set of organizational and project eligibility screening criteria; and 2) met a set of minimum requirements as set forth in the Call for EOI. The full Partnership Proposals submitted by Shortlisted Applicants will be expected to provide detailed and expanded information on projects proposed during the EOI phase as per the Partnership Proposal Requirements outlined in Annex 1 of this document. After receipt of the Partnership Proposals (no later than December 30, 2014 at 17:00 Jakarta time), MCA-Indonesia will convene a second TAP to review and assess Partnership Proposal submitted by Shortlisted Applicants against the evaluation criteria provided below and recommend project(s) to be put forward by MCA-Indonesia for review and approval by the 3 P a g e

5 GP Facility Investment Committee (IC) to receive grant funding and proceed to the final stage of Partnership Grant Agreement negotiation. This second-stage appraisal process may require consultations between MCA-Indonesia and the Shortlisted Applicants to clarify information included in the Partnership Proposal or to request additional information. Once Partnership Proposal has been approved by the IC, MCA-Indonesia shall promptly negotiate terms and conditions and conclude Partnership Grant Agreements with the successful Applicants. It is important to note that: Although the Shortlisted Applicants can submit a full proposal which includes activities in both GP Project s 24 targeted districts as well as other districts adjacent to those 24 districts, the GP Facility grants shall only be used to support activities in the districts which have Memorandum of Understanding ( MoU ) with MCA-Indonesia in place at the time of signing the Partnership Grant Agreements and project implementation plans and budgets in the Partnership Grant Agreements will have to correspond with and include activities only in eligible districts. The GP Facility's Partnership Grant match can only be used to cover costs for activities that will occur by April 1, Should the three-year implementation timeline (to complete within the life of MCA-Indonesia's Compact) put results of interventions over a large pool of beneficiaries at risk, Shortlisted Applicants are encouraged to propose approaches that will allow for project activities to continue after April 2018, and address issue of how co-funding match from one of the partners could be targeted against those activities, if needed. The Invitation to Submit Full Partnership Proposals does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Partnership Proposal shall not obligate MCA- Indonesia to provide funding. The organization/consortium submitting a Partnership Proposal shall bear all costs and expenses for the preparation and submission of the Partnership proposal. II. Partnership Proposal Requirements As a Shortlisted Applicant, you are invited to submit a full Partnership Proposal under MCA- Indonesia s Green Prosperity (GP) Facility that will strengthen, clarify, and further define the proposed project presented in the Concept Note included in your Sustainable Cocoa Partnership EOI submitted in August The Partnership Proposal shall describe how the proposed project will contribute to the GP Project objective of increasing household incomes while reducing land-based greenhouse gas emissions by mobilizing private sector funds to strengthen the cocoa value chain and leveraging the technical and development expertise of the project implementers. Specifically, the Partnership Proposal must address and include all items in the Partnership Proposal Requirements outlined in Annex 1 of this document. The full Partnership Proposal should not exceed 40 pages in total (not including annexes). Should a Shortlisted Applicant be selected by the TAP and recommended to the GP Facility Investment Committee for approval for grant funding, a Partnership Grant Agreement will be negotiated between MCA-Indonesia and the Lead Organization of the partnership. Annex 2 4 P a g e

6 provides an overview of the Grants Management process for Shortlisted Applicants to consider as proposals, implementation plans and budgets are developed. III. Evaluation Criteria for Partnership Proposals MCA-Indonesia will convene a second TAP to thoroughly review and assess the full Partnership Proposals against a set of evaluation criteria covering financial, technical and programmatic aspects as well as socio-environmental impact as outlined in the table below. Upon its review the TAP will then recommend project(s) to be put forward by MCA-Indonesia for the approval by the GP Facility Investment Committee to receive grant funding and proceed to the final stage of Partnership Grant Agreement negotiation. In the event that a full Partnership Proposal submitted during this second stage of the process has material deviations from the information provided to MCA-Indonesia in the Concept Note, the Shortlisted Applicant must inform MCA-Indonesia in writing earlier or in a cover letter accompanying the Partnership Proposal submission. MCA-Indonesia will then review the proposed changes and render its opinion, in its sole and absolute decision, as to whether the TAP will proceed with the evaluation and appraisal of the Partnership Proposal. Partnership Proposals will be ranked based on the total score to recommend and put forward to the Investment Committee for the Partnership approval. Proposals with higher score will get higher opportunity for the Partnership Grant Agreements. Part-1: Verification Table-1: Evaluation Criteria for Sustainable Cocoa Partnership Proposal Criteria Description Score 1.1 Project Description Co-funding Requirements Economic Rate of Return (ERR) Partnership Proposal submitted is based on the project description in the EOI/Concept Note. If there are material changes on the scope, proposed interventions, and/or expected results, there should be sufficient explanations on why those changes have been made. Proposed budget has a minimum funding structure/composition of 1:1, i.e. US$1 (in cash or documented direct payments) from the Lead Organization (and/or the consortium it represents) to every US$1 requested from MCA-Indonesia. Partnership project s ERR must be greater than 10% as assessed by MCA-Indonesia/MCC Economic Team using data provided as part of the detailed proposal (refer to Section 8 in Annex 1 of this document). Pass/Fail Pass/Fail Pass/Fail Part-2: Safeguard Requirements Environmental and Social Management System Quality and rigor of completed Environmental and Social Performance Datasheet (ESPD) and quality of analysis of risks and how they will be managed P a g e

7 2.3 Criteria Description Score Social and Gender Integration Quality and rigor preliminary participatory social and gender assessment, including description and mapping of cocoa value chains and livelihood strategies Project design includes approaches to ensure equal opportunity for women and vulnerable groups to participate. Part-3: Technical Aspects Project Description, Rationale, Technical Approach Clarity and soundness of the program logic - whether it has realistic objectives, relevant Program logic and outputs/outcomes, as well as demonstrates a the alignment with clear, logical link between objectives, outputs GP Project objectives outcomes and main activities. The extent to which the proposed project meets GP Project objectives. 10 The extent to which the technical approach is Technical approach innovative and clearly demonstrates understanding of best (and worst) practices and is considering the local specific conditions Project Implementation Plan and Project Budget Project Implementation plan Project Budget The extent to which the implementation plan is clear and realistic. This is demonstrated by a clear, detailed work plan/project activities schedule, including proposed milestones. Clarity and level of detail of the budget, e.g. broken down by quarter, including proposed deliverables, funding sources per budget line, etc. Cost reasonableness, including proportion of budget for Project Management and relevance of proposed budget (lines) to proposed interventions 3.3 Sustainability and Scalability 10 Whether there is a clear and feasible plan to Sustainability transition and move away from donor's to private 5 sector funding for long-term stability in the sector Scalability Whether the technical approach allows for scaleup which includes additional small holders both during and after the life of the project Monitoring and Evaluation 10 Quality and rigor of M&E plan, including relevance Monitoring of proposed indicators, methodology for monitoring/data collection/means of verification, 5 monitoring frequency, etc Impact Evaluation Quality (rigor and clarity) of the preliminary outline of proposed research topics for impact evaluation, including the proposed methodology Organizational Capability The Lead Partner's experience in managing similar Lead Partner's projects and capability to manage the proposed capability project, demonstrated for example by good, P a g e

8 3.5.2 Criteria Description Score Financial management appropriate project implementation organizational chart, including structure of key personnel/management. Availability of sufficient, relevant financial system (e.g. suitable accounting system) and expertise in 10 managing grant funding or project budget of the proposed size and maintaining fiduciary control. TOTAL 100 IV. Submission Instructions The full Partnership Proposal and all the required documents should be submitted in both hard/printed copy (three copies) and electronic copy, and must be received by MCA- Indonesia no later than December 30, 2014 at 17:00 Jakarta time. Printed copy of the full Partnership Proposal should be sent to: MCA-Indonesia MR21 Building, 11 th Floor Jalan Menteng Raya No. 21 Jakarta 10340, Indonesia Please mark the top left side of the envelope with Full Partnership Proposal - Sustainable Cocoa Partnership. Electronic copy of the full Partnership Proposal should be ed to: gp@mcaindonesia.go.id. Please put Full Partnership Proposal - Sustainable Cocoa Partnership in the subject line of the . Questions and requests for clarification should also be submitted to the above address, latest by November 28, MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Invitation for Partnership Proposal, suspend or cancel this Invitation for Partnership Proposal and the signing of Partnership Grant Agreement. Capitalized terms used but not defined in this Invitation for Partnership Proposal have the meanings set forth in the Compact, and, if not defined in the Compact, in the Program Implementation Agreement. 7 P a g e

9 Annex 1 Partnership Proposal Requirements The Full Partnership Proposals submitted by the Shortlisted Applicants are expected to provide detailed and expanded information on projects proposed in their Concept Notes submitted and selected during the EOI phase. In particular, the proposals should include and address each of the items listed below. In addition and as noted, for some sections or particular information required, templates will be provided for the Shortlisted Applicants to use that will support an efficient appraisal process and facilitate development of the Partnership Grant Agreement should the proposal(s) be selected for grant funding. Please note that the proposal is not to exceed 40 pages in total (excluding the annexes). 1. Executive Summary This section should provide a succinct summary or overview of the proposed project (maximum two pages) in a form that can be treated as a stand-alone document. It should describe or provide information on the: "Business Case" of the proposed project Proposed project's objectives, planned outputs and expected outcomes, and how they would contribute to achievement of the GP Project objectives Locations of the proposed project and timeframe for implementation Total budget and overall funding structure 2. Project Management Arrangement and Structure This section should explain how the proposed project will be governed and managed. It should set out in details the main project management structure/functions (e.g. the Consortium and its members, the Project Implementation Unit which manages the day-to-day project implementation, if there is one), the roles of and relationships among the consortium members or implementing partners, governance arrangement, and reporting structure. It should also include: A project implementation organizational chart showing the structure or hierarchy of the various project management functions or implementing partners. Key personnel and management structure, listing the names of key staff/personnel to be involved with the project (with brief CVs of core team members), which (contributing) consortium member they are associated with, their place in the project organizational chart, expected Level of Effort (LOE) and time in-country during implementation, and source of funding for their salary and other related costs. 3. Description of the Project This section should provide a detailed description of the project being proposed that follows the below outline and provides clarification and expanded details to the EOI and Concept Note on: 8 P a g e

10 3.1. Project Rationale and Objectives The Shortlisted Applicants should provide a rationale for the proposed project as well as a description (either in narrative of flow-chart form) that articulates the logical or results framework (program logic). This should demonstrate how the proposed interventions will address the problem, outlining the overall objectives, detailing how inputs lead to outputs and expected outcomes, and noting assumptions inherent in the causal chain. When preparing the results framework, Shortlisted Applicants should: 1) Address how the proposed project activities will: 1) address cocoa value chain weaknesses that have resulted in stagnant or falling on-farm productivity; 2) impact on smallholder household incomes; and 3) measure/estimate reduced greenhouse gas emissions and/or increased carbon fixation. 2) Make the business case for: 1) why a sustainable cocoa partnership is needed in Indonesia ( problem statement ); 2) why private sector stakeholders would invest in the proposed project; 3) why public funds should be used to leverage the private sector investment; and 4) how any proposed intervention is environmentally sustainable, promotes social equity, and is economically viable. 3) Provide a clear explanation as to why the private sector (traders, processors, other value chain stakeholders) would be willing to put their resources into the project and why MCA- Indonesia, from the view of providing a public good, should match those resources. In addition, the detailed Partnership Proposal will discuss the scalability of sustainable cocoa project interventions and costs of taking those interventions to scale Technical Approach This section should elaborate the proposed project's technical approach, describing the project interventions and proposed approach and tools, including roles of various partners in each activity. Each project intervention should be linked to the objectives outlined in Section 3.1 above and should be associated with a measurable target. More specifically, this section should address the following issues: 1) If the project is building on direct and/or experience of other projects in Indonesia (and/or similar markets), detailed and specific information on both results and lessons learned should be provided in the technical approach. These actual experiences and results should inform and guide the targets and as well as assumptions that will feed into the economic analysis. 2) If increased market access is a project objective, Partnership Proposals should include a description of incentives to be introduced via project activities that will motivate smallholder cacao farmers to adopt new technologies and production methodologies that will improve their ties to the market-place. The Partnership Proposal should discuss why predicted changes in smallholder farmer behavior have not occurred to date in spite of significant public, donor, and private sector investment in farmer training, presence of extension services, and provision of inputs. A description of how project activities will enhance or impact buyer/seller relationships along the cocoa supply chain will be needed. In addition, for example, if the project helps farmers improve market access, the Partnership Proposal should describe what market access looks like after the project 9 P a g e

11 is concluded, how it will be supported for smallholders, and by whom (Farmer co-ops? Local traders/aggregators? Processors?). 3) If farmer training is proposed, the Partnership Proposal should clearly describe the time period over which training occurs as well as the intensity (how often), quantity (hours), training topics/modules (with details), and trainers. If small holder farmers will require additional labor to implement new practices and technologies, will the workers be trained and how will they be selected for training. If there are other trainings for cacao farmers from government or other organizations (including the Indonesian Coffee and Cacao Research Institute/ICCRI), how the Shortlisted Applicants will coordinate so that there is no duplication or inconsistency among these. Evidence should be provided to support targets and expected results (adoption rates and increased yields) based on time and intensity of training. 4) How small holder farmers are to be identified and selected for training, role of farmer associations in the identification and/or selection of training of farmers and which of the consortium partners will carry out the training. Specific approaches and interventions needed to support equal participation of women, ethnic minorities and other vulnerable groups should be included as part of the methodology for identification and selection of farmers within targeted districts, sub-districts and villages. (Section 3.3 below outlines additional requirements related to beneficiary targeting and selection). 5) If improved access by cacao farmers to agricultural inputs (finance, seedlings, fertilizers, pesticides, tools, etc.) is envisioned in the project, a description of how such inputs will be delivered, by whom, at what cost, and whether subsidized or not should be included in the Partnership Proposal. If the project provides farmer training and/or subsidized farm inputs, the Partnership Proposal should describe what the input supply system will look like post-project, and who will be involved in providing inputs to smallholders. 6) If multiple approaches and/or sub-projects will be included in the Partnership Proposal, the rationale for these differing approaches should be included, and a clear strategy and approach articulated as to how the sub-projects will coordinate, share information, especially as related to improved overall market access. 7) Access to credit has been discussed as a critical need of smallholder cocoa farmers in Indonesia. If increased access to credit among smallholder cocoa producers is envisioned as a project outcome, the Partnership Proposal must discuss credit access, costs of financing, and alternative sources of credit that could be available after the project is concluded. If credit is to be provided to producers, traders, or farmer-owned enterprises as one of the project activities by one of the contributing consortium partners (and to be counted as meeting the co-funding requirement), a description should be provided as to how and when such loans would be made, what the size of those loans would be, who would administer the loans, and whether or not such loans would carry some type of financial institution or government guarantee or subsidy. In addition, a detailed accounting of how farmer credit is treated with respect to project co-funding must be provided in the Budget section. GP Facility fund cannot be used for credit facility. 8) The role (if any) of farmer organizations such as farmer-owned cooperatives in cocoa bean aggregation, fermentation, marketing and/or input supply functions in the project, and whether the creation or strengthening of such farmer-owned enterprises, including women farmers associations is envisioned as a project activity. 10 P a g e

12 9) If producer's third-party certification is a tool to be used in the project to achieve sustainable and profitable cocoa production and to document forest incursion, the Partnership Proposal should include a discussion of the cost/benefit analysis for the smallholder producer, who will undertake and pay for certification(s), who will own/manage the certification(s), and how premiums that are generated (if any) will be distributed along the cocoa supply chain. 10) Given the GP Project requirement that program interventions must contribute to a reduction or avoidance of land-based greenhouse gas (GHG) emissions, the Partnership Proposal should describe those activities that will meet this objective and define the methodologies that will be used to estimate: 1) GHG emissions reductions; and/or 2) increased carbon fixation in biomass and soils for proposed project and its activities. Partnership Proposal must provide estimates of greenhouse gas reductions (see M&E section below) and indicate the geographic location on which these estimates are based. In addition, the technical approach and implementation plan must demonstrate how a reduction in forest encroachment and/or avoidance of deforestation or forest degradation can be sustained post-project Description of Beneficiaries and Social and Gender Assessment Partnership Proposals submitted by Shortlisted Applicants should provide a detailed description of targeted beneficiaries for each targeted district, sub-district and village, including cocoa farmers and all players in the cocoa value chain, a general profile of the population (including vulnerable groups), their livelihoods, institutions and relationships with natural resources, and maps indicating location of targeted cocoa production areas within the targeted districts, sub-districts and villages ( investment landscape 1 ). As discussed in the Technical Approach section above, proposals should describe how farmers will be identified and selected for training and access to women and other vulnerable groups will be ensured. This process should be informed by a preliminary social and gender assessment using a participatory approach that consults with women and men of the small holder households, cocoa farm workers, farmers associations, technical training institutes, extension staff and other stakeholders, described in more detail in Annex 3. Findings of this preliminary analysis should inform and be clearly linked to project design and technical approach sections above and help to identify training (and other programmatic) needs that will enable farmers to adopt new skills and increase their livelihood enhancement opportunities within the project. More specifically, Shortlisted Applicants should: 1) Clearly identify number of project primary beneficiaries targeted for training disaggregated by district, sub-district, village, gender, vulnerable groups, and size of operation (number of hectares of cocoa). If details by sub-district and village are not known, describe methodology for selecting beneficiaries within the larger district unit. 2) Include the total number of cocoa farming households and hectares under production (or universe of potential cacao farmers that could be trained), in order to clearly identify and highlight what share of the cocoa producers in a specific district and/or sub-district are being targeted for training and/or other interventions. 1 For a description of GP s landscape approach refer to 11 P a g e

13 3) Describe what methods and criteria are proposed for selecting specific farms/farmers and other local associations and stakeholders to be included in project activities (especially training) and how the social and gender assessment informed the design and approach to identifying and selecting target beneficiaries. 4) Distinguish new and existing beneficiaries and relationship between on-going projects and those that will be covered in this proposal. 5) Include a description of the biophysical (natural resources such as rivers, water bodies, forests, degraded lands etc.), administrative and social elements of the intended investment landscape, accompanying maps with the geographic location of areas within the targeted districts, sub-districts and villages. Areas targeted for certification should be clearly identified. 6) Include a description and mapping of the cocoa value chain players (producers, fermenters, processors, traders) and other stakeholders and institutions active in the target areas and working with the target population --e.g. farmer associations, cooperatives and other stakeholders such as training institutes, government services (subsidized fertilizer program, training, and extension). 7) Include a description of livelihood strategies of the people in the targeted districts and sub-districts to answer such questions as: Are the households earn their living exclusively from cocoa, or do they have /need several livelihood options annually to survive? How will improved productivity of cacao help improve economic opportunities and livelihood of targeted farmer households? With cocoa intensification, will small holders need to hire labor and if so, what is the potential increase in job opportunities for landless farmers not currently involved in cocoa? What is the proportion of cocoa farmers who grow their own food crops? The Partnership Proposal should include a table that summarizes clearly required information in items 1 and 2 above with objective of providing a clear overview of total numbers cocoa producers and production in targeted districts, sub-districts and villages (if possible). The template for this table is provided in Annex 3. A narrative should accompany the table and describe the assessment approach used and how the issues covered in Items 3-7 above are addressed. The narrative should clearly describe how findings from this analysis have informed project design and technical approach Sustainability and Scalability Embedded in and integral to the technical approach as well as the expected short and longterm outcomes is addressing sustainability and scalability issues in order to ensure that positive project impacts are not lost, and preferably, will continue to accrue to smallholder producers and other actors in the cocoa value chain. The technical approach and implementation plan should demonstrate how to move away from donor funding toward long-term support and stability in the cocoa sector that comes from the private sector and market players and allow for (and encourage) the project to be scaled up to include additional small holders. 12 P a g e

14 4. Project Implementation Plan, Project Budget, and Deliverables The Shortlisted Applicant must provide a clear, detailed and logical implementation schedule for the duration of the project, showing all key operating steps and activities necessary for project implementation. There should be a clear and logical link between this schedule, narrative description of the partnership's strategy and project goals, and the project budget. The detailed Project Implementation Plan should outline project activities by quarter and describe who (which partner) will be carrying out and/or funding which activities. The detailed work plan and corresponding Project Budget should clearly describe what will be covered by the GP Facility match and what will be covered by the proposed partnership's co-funding. It should be noted also that Successful Applicant(s) and MCA-Indonesia will use the information provided in the Project Implementation Plan and Project Budget to develop a Schedule of Deliverables to be agreed during Partnership Grant Agreement development/negotiation Project Implementation Plan The Partnership Proposal should include a detailed work-plan using the Project Implementation Plan template provided in Annex 5 that outlines, on a quarterly basis, the specific project activities planned, and who (which consortium partner) will be carrying out which activities. There should be a clear and logical link between this work plan, narrative description of the partnership's strategy and project goals, and the project budget. It is especially critical that these tie to the Deliverables stated on the Project Implementation Plan and the Project Budget. The detailed work plan should include all key steps and associated Deliverables for the implementation of the entire proposed project, even (and especially) if implementation extends beyond April The Project Implementation Plan should include, as appropriate, the procurement of goods, works and services significant to the project s implementation to be procured by the Lead Organization and/or any of its consortium members, and provide details as to how those goods and services will be procured in order to be consistent with Compact principles and guidelines that highlight fair, transparent, open and competitive procedures for acquisitions. The Project Implementation Plan should organize Activities by quarter and correspond to the Project Budget. Grant disbursements in the Partnership Grant Agreements will be linked to deliverables shown in the Project Implementation Plan. Deliverables (and detailed descriptions of what is required to complete a deliverable) and Schedule of Deliverables will be finalized during negotiation of the Partnership Grant Agreement and should document and provide evidence that an agreed set of activities and/or outputs and outcomes have been achieved. Disbursements for completed deliverables will be made at the end of the quarter in which they are completed. Timeframe Considerations The Indonesia Compact will conclude on April 1, Compact funding disbursements for the GP Facility must be completed prior to the end of the Compact, and the activities for which the progress-based payments are made must also be completed at that time. Given the time and location constraints, MCA-Indonesia is interested to see Partnership Proposals that demonstrate a partnership approach and equitable proposals for the disbursement of GP 13 P a g e

15 matching and partnership co-funding requirements against clearly defined project progress indicators, especially those that will impact the critical outcomes of the project. Therefore the Shortlisted Applicants should indicate a timeline for full project completion and include a description of what activities will be paid during the Compact timeline and by whom, and what will be continued by the partnership after Compact end date, should the technical approach and methodology indicate that additional time is required to achieve maximum results Project Budget Grant funds requested in the budget must be directly associated with the project goals, as described in the grant Partnership Proposal narrative and must be consistent with the Project Implementation Plan. The purpose of the Project Budget is to provide a breakdown of the various inputs needed to implement the project, as well as a description of the assumptions which support the amounts included. Shortlisted Applicants should refer to Annex 7 to gain an understanding of the Cost Principles related to Partnership Grants in developing the Project Budget. This information will be critical in assessing cost reasonableness of the proposed project during the proposal appraisal stage. In addition, the Project Implementation Plan and Project Budget will serve to inform the Schedule of Deliverables and payment terms to be included in the Partnership Grant Agreement. When preparing the Project Budget, the Shortlisted Applicant should: Fill in the Project Budget using the template in Annex 6A, indicating the budget allocated to each budget line/cost item and the amount of partner's contributions for the duration of the project. This must correspond to the Project Implementation Plan. Present the allocation for estimated grant expenses based on the budget s two major components: i. Programmatic costs: Estimated costs for activities or services that are for the implementation of the project and can be associated with specific Deliverables defined in the Project Implementation Plan. For example, salaries of consultants that deliver particular outputs and materials required for this particular project, as well as costs of holding training sessions and workshops to communicate specific project objectives are programmatic costs. All programmatic costs must be associated with specific deliverables in the Project Implementation Plan and later, in the Schedule of Deliverables. *It is anticipated that both MCA-Indonesia grant funding and matching contributions will support programmatic costs. ii. Project Management Costs: Estimated costs for overall administration of this project which cannot be directly associated with a specific deliverable or deliverables. For example, salaries of administrative and overall management personnel who are dedicated solely to this project, consumables for project administration, travel for general monitoring and/or coordination, and monitoring and evaluation costs for the overall project could be considered Project Management costs. 14 P a g e

16 *Project Management costs should not exceed 15% of the total project budget. Proportion of Project Management costs will be considered in assessment of cost reasonableness. *All Project Management costs should be borne using matching contributions and will be tracked in the financial reports as actual amounts paid. MCA-Indonesia grant funding will not be used for Project Management Costs. Shortlisted Applicants should provide as much detail as possible to allow for an assessment of how reasonable the financial estimates are given the scale of the grant work planned. Although the Project Budget is structured in table format, it is anticipated that Shortlisted Applicants will provide additional detail on assumptions in narrative form. Payment from MCA-Indonesia using grant funds will be made upon completion of Deliverables as prescribed in the Project Implementation Plan. Disbursements for completed Deliverables will be made at the end of the quarter in which they are completed. In order to structure the appropriate grant disbursement schedule in the Final Grant Agreement, Shortlisted Applicants should identify the currency to be used as part of the Project Budget and Project Implementation Plan, maintaining consistency throughout the submission. Grants can be denominated in USD, IDR (Indonesian Rupiah) or both, and disbursed accordingly. Shortlisted Applicants must present their budgets in a way that clearly states the relative currencies (USD and IDR) to be used during grant implementation. Note on Assets to be Purchased Assets are items to be purchased which have a unit value of more than USD 1000 and a useful life of more than one year. It is anticipated that both MCA-Indonesia grant funding (Programmatic costs only) and matching contributions could support the purchase of assets. Any assets which are Programmatic Costs and are purchased with MCA-Indonesia funding will be subject to specific regulations governing their use and disposition, as well as additional regulatory requirements which will be detailed in the Partnership Grant Agreement. To support the assessment of these requirements impact on the project, Shortlisted Applicants should also provide a list of potential assets (in Annex 6B) which will be purchased using MCA- Indonesia grant funding, or obtained as a result of activities funded by MCA-Indonesia grant funding. Co-Funding Requirements The Project Budget should also reflect contributions to be included in meeting the co-funding requirement of a Partnership Grant Agreements that consists of Cash Payments to project accounts and/or Documented Direct Payments made directly to a supplier of goods or services that are mobilized specifically for the purpose of implementing the activities defined in the Partnership Grant Agreement. A minimum cash contribution of 25% of total project value paid into project operating accounts will be required for Sustainable Cocoa Grant Partnerships. Contributions from NGOs and other implementers in a partnership consortium can count against the private sector 1:1 match only if the resources originated from a private entity and they were received specifically to advance the project/partnership being proposed. If Loans are proposed as a co-funding source, potential partners should be able to clearly articulate how this funding (and the resulting loans) will contribute to results and greater 15 P a g e

17 chance of sustainability. Annex 7 provides further information on the co-funding requirements and MCA-Indonesia s cost principles. Additional Financial References In addition to the above Project Implementation Plan and Budget, Shortlisted Applicants must also provide with their Partnership Proposal: Audited financial statements for the last two years; Evidence of the availability of funds as pledged for each of the contributing partners; A description of the proposed project accounting system and financial management arrangements; A description of the expense types in the Project Budget, as well as a narrative to describe how Deliverables will be met without incurring relevant unallowable costs; A narrative justification for any payments to be made upon signing of the grant, if any, including efforts to ensure that these amounts are consistent with the minimum amount required in order to successfully start the project. 5. Environmental and Social Management System The Partnership Proposal should include a discussion of the approaches to be used by the Shortlisted Applicants that will ensure that project activities comply with environmental and social safeguards. MCA-Indonesia has developed the Tier-2 Green Prosperity Project Environmental and Social Management System (ESMS) to guide the environmental and social performance of project activities. The complete GP Project (Tier-2) ESMS can be found at A safeguards guideline for cocoa intensification project identifying potential environmental and social performance issue is also included in Annex 8 of the Tier-2 GP ESMS (p.81). Specifically, the Shortlisted Applicants should complete the Environmental and Social Performance Datasheet (ESPD) provided in Annex 4. The objectives of the ESPD are to help identify and address potential adverse environmental and social impacts of the proposed project as early in the project cycle as possible; help plan for environmental and social performance measures to be integrated into project design; and serve as a document that can help inform the public on applicable mitigation measures in the project. As the ESPD will be reviewed by the TAP, with input from MCA-Indonesia s Environmental and Social Performance (ESP) Unit, it should demonstrates the Shortlisted Applicant's clear understanding of the priorities and risks for the proposed project, including mitigation strategies and identification of any additional studies that will be required to further understand and identify risks, and mitigation and opportunity options related to environmental and social issues. Should further studies be identified as needed, they should be built into project design and budget structure. 6. Social and Gender Integration MCA-Indonesia has developed a Compact level Social and Gender Integration Plan (SGIP) that includes a GP Project SGIP, to ensure social inclusion and gender equality outcomes in project activities (see for both Compact and GP Project SGIPs). 16 P a g e

18 As discussed above in Section 3.3, the project s technical approach should include specific approaches and interventions needed to ensure equal access of project participation and benefits for women, ethnic minorities and other vulnerable groups and demonstrate a clear understanding and constraints of the key social and gender concerns outlined in the SGIP for the GP Project. Key gender concerns are that while women in Indonesia play a vital role as agricultural producers and are agents of food and nutritional security for households, they are not recognized as household head, not members of farmers cooperatives (cocoa/coffee), as such may not able to access training, extension, high yield inputs, and other services; thus limiting their as well as household economic potential. As required in Section 3.3 above, Shortlisted Applicants need to undertake a preliminary social and gender assessment using the approach outlined in Annex 3. If selected for grant funding, selected Shortlisted Applicants will be required to carry out within GP's landscape approach, in-depth Lifescape Analysis no later than 90 days after mobilization in order to inform final detailed design and needed technical support. Details on the methodology for this Lifescape Analysis will be made available to selected Shortlisted Applicants. The completed Lifescape Analysis to be included as part of the initial deliverables and be included in the Project Implementation Plan and Project Budget as per Section 4 above. As with the GP ESMS and its ESPD above, should further studies and analysis be identified as needed (beyond the above required Lifescape Analysis) they should be built into project design and budget structure. 7. Monitoring & Evaluation 7.1. Monitoring and Evaluation Shortlisted Applicants are required to provide a preliminary Monitoring & Evaluation (M&E) Plan, including clear output and outcome indicators and their targets. Outcomes and outputs for the M&E Plan should be clearly linked to the program logic and objectives provided in Section 3.1 above. Guidance on developing M&E Plans is available at The preliminary M&E Plan should be finalized prior to signing Partnership Grant Agreement. Organization in the partnership will be expected to undertake day-to-day monitoring of the progress of their projects based on the indicators in the M&E Plan. For MCA-Indonesia, monitoring and evaluation is a continuing function that uses systematic data collection and analysis to provide project stakeholders with information on progress toward project outputs and objectives/goals. This information is critical both from an accountability perspective, as well as to inform implementation and sector learning. This M&E Plan must align with the Indonesia Compact M&E Plan (available at such that the projectlevel data can feed into the GP aggregate performance indicators, though it should be noted that the GP M&E Plan is currently being revised. The updated version of the plan is expected to be available at the evaluation link by December All grantees will need to submit monitoring data to MCA-Indonesia on a quarterly basis, as an update on progress toward achieving outputs. At a minimum, grantees will be expected to report on the following indicators on a project-basis: 17 P a g e

19 Table 2. Minimum Project-basis Indicators Level Indicator Definition 1 Outcome Hectares of forest area Number of hectares protected from environmental protected and/or degradation. This includes protected natural hectares of land under resources, degraded and/or land currently under sustainable agriculture production that is protected and/or management/land use practices improved/upgraded as a result of project interventions; community forest management; and ecotourism in protected areas. 2 Outcome Estimated greenhouse gas emissions reduced Estimate, based on modeling, of unit of greenhouse gas emissions reduced or avoided as a result of completion GP-funded projects. 3 Outcome Yield* 2 (t cocoa/ha) Cocoa yields increased and sustained over time; trend 4 Outcome Sustainable Intensification of Production* (t cocoa/ha/$1 inputs) 5 Output Hectares targeted for improved practices for sustainable agriculture (including agroforestry) as a result of GP-funded projects and/or partnerships 6 Output Project participants trained through GPfunded projects and/or partnerships 7 Output Farmgate Cocoa Price* ($/t) line of cocoa yield Measure of cocoa produced per hectare per $1 of input - - the more economically and biologically efficient the producer is becoming. Total number of hectares targeted to apply new production or managerial techniques that support sustainable agriculture, improved land-use practices (ag and/or agroforestry) and protection of natural capital introduced, through GP-funded projects and/or partnerships. Includes at least one practice and/or package of practices from GP-funded training, technical assistance, and/or project support that will have a material impact on yield and/or sustainability, such as input use, production techniques, certification required practices, irrigation practices, or farm management techniques. Includes both land currently under agriculture production and/or degraded land that is improved/upgraded as a result project interventions. This projection will be based on grants approved by the GP Investment Committee. Number of project participants who have satisfactorily completed GP-funded training and/or technical assistance training package. Disaggregated by gender. For sustainable agriculture projects and partnerships includes training directed to targeted links in the value chain such as farmers, plant workers, packers, transporters, post-harvest enterprise managers, input supply technicians and facility managers, and certification enterprises and so forth. Ability of smallholder cocoa producers to earn an increased portion of the cocoa value, expressed as percentage of world market price. 2 Indicators with * are specific to Cocoa Sustainable Partnership that will lead to cumulative indicators for GP program. They are not included in the Indonesia Compact M&E Plan referenced above, but grantees are still expected to report on them. 18 P a g e