Grant funding to business initiatives in a gender sensitive manner for the local micro and small enterprises and farmers in the Municipalities of Dragash/Dragaš, Shtërpcë/Štrpce and Viti/Vitina Guidelines for applicant 2018 1
Table of Contents Table of Contents... 2 1. Program Overview... 3 2. Purpose of grants... 3 3. Eligible activities for funding... 3 3.1 Ineligible activities and costs for funding... 4 4. Applicants eligibility requirements... 4 4.1. Eligible applicants... 5 4.2. Extra requirements ONLY for the selected applicants... 6 4.3. Ineligible applicants... 6 5. Size of grants... 6 6. How to apply and submission deadlines?... 7 6.1 Proposal... 7 6.2 Evaluation of the proposals... 8 6.3 Selection Criteria... 8 6.4 Where and how to send the Applications... 8 6.5 Information sessions... 9 6.6 Further information about the application... 10 7. Grant Management... 10 2
1. Program Overview The Local Development Fund (LDF) is an independent foundation, aiming to support, improve, strengthen and stimulate the development of rural and agriculture sectors in Municipality of Suhareke/Suva Reka mainly through grant provision programs. The Local Development Fund (LDF) has been established in 2011 by Integrated Regional Development in the Municipality of Suharekë/Suva Reka in the sector of agriculture project financed by Austrian Development Cooperation. Throughout the period 2015 and 2016, LDF has managed to implement InTerDev project phase 1. The main objective of this project was to support smallholder farmers to improve their socio-economic and employment prospects in a sustainable manner with particular emphasize on smallholder farmers, minority communities, persons with special needs and female-headed households. InTerDev project has supported 57 projects in different sub sectors of agriculture. Considering succesful implementation of InTerDev first phase, it was decided to continue the second phase by adding Viti/Vitina Municipality as another beneficiary. Currently, the first call is successfully accomplished and as a result, 14 projects have been awarded and accomplished with grants in different sectors including all three target municipalities. The main objective of InTerDev 2 project is to improve livelihoods of smallholder farmers in three (3) target Municipalities with particular emphasis on female farmers, non-majority community members and other vulnerable groups in a sustainable manner. 2. Purpose of grants The InTerDev 2 Project will disburse grants for smallholder/medium farmers initiatives which are in line with the guiding municipal development strategies, in particular the Municipal Development Plan, Urban Development Plan, Local Development Plan and National Agriculture and Rural Development Plan. In addition, the purpose of grants is also encouraging those farmers who have never applied for grant but have potential and resources to improve their livelihood if such support would be provided to them. As such, the benefits from grant provision will be shared between neighbors, family relatives and friends mainly through inviting them on sessions and trainings. 3. Eligible activities for funding The following types of activities relevant for the sectors of agriculture may be financed under the InTerDev 2 call for proposals but not limited to: Improvement of agricultural production infrastructure aiming at increasing and improving the production and quality of the agricultural products 3
Projects that strengthened the membership base of farmers and/or smallholding /medium producers associations in Dragash/Dragaš, Štrpce/Shtërpcë and Viti/Vitina Municipality in order to improve production, marketing and supply chains Projects that provide employment prospects and opportunities smallholder farmers with special emphasize in supporting of unemployed women, non majority communities which are engaged in agriculture and rural development Off seasonal and opened field agriculture production The introductions of modern animal husbandry, expand an existing farm, increase a number of herds, improve the stable conditions and animal welfare standards. Support farmers in creating and expanding value added products in all subsectors of agriculture Project that support innovations in agricultural production and value chains that put a new idea or technology into use Projects for promotion of natural and organic production Projects with main objective to improve the marketing / branding of honey in Municipalities of Dragash/Dragaš, Shtërpcë/Štrpce/ and Viti/Vitina and in southern & eastern economic region of Kosovo, such as but not limited to establishment of collection centres with packaging lines and chain of quality control (i.e. antibiotic test of honey, recommended amount of added sugar) and other needed equipment. Increase and modernization of orchards (not limited to raspberries, aronia and other new fruit varieties) Promotion of environmentally sound farming practices that are context and targetgroup specific 3.1 Ineligible activities and costs for funding Purchase of tractors and other supporting equipment, impacting only limited beneficiaries. Consumables like seed and fertilizers Requests for milking cows or other livestock, without having a proper explanation on the ROI and other relevant benefits. Projects with slow and questionable ROI. Expenses incurred before the grant is awarded or after the contract ends. Costs for staff and other personnel. Projects where grant funds will be used to cover operational costs. Administrative costs will be allowed and approved only in cases when the project is implemented by a registered NGO. The total costs may not exceed 7% of the total budget. 4. Applicants eligibility requirements The applicant must be a smallholder/medium farmer or represent smallholding farmers, agricultural associations and non-governmental organizations in the field of agriculture in the Municipalities of Dragash/Dragaš, Shtërpcë/ Štrpce and Viti/Vitina. NGOs and farmers beyond these municipalities are not eligible to apply. 4
The applicant might not need to be farming full time, but the commercial operation must not exceed maximum annual farm income of 15,000 Euros from the harvest and sale of crop, nursery, livestock, greenhouse, or other agricultural products that are sold on a regular basis. 4.1. Eligible applicants Smallholding farmers, who are currently involved in agriculture activities Smallholding/medium farmers with only a little land to farm and few other assets Farmers who lack access to high-quality inputs, grants and subventions, services and equipment; Farmers who have benefited during InTerDev phase 1 (LDF and TEP actions) during 2014-2016, which need further investments in accordance with InTerDev 2 project target group. This category of applicants, are eligible to apply for other type of investments aiming to complete the cycle of production / processing chain. In addition, eligible applicants preferably will be considered applicants not funded by other donors; In case of increasing the number of livestock, the farmer must have at least 3 cows (should be specified in the application if milking cows, calves or other) or minimum 10 small livestock. The maximum of livestock (cows) increase cannot exceed 10, while the number of small livestock (sheep, lams and goat) may not exceed 50. This group of farmers is also eligible to apply for combined activities (purchase of milking machines, renovation of milking storage room, infrastructure improvement); Farmers and small enterprises related to agriculture and food processing which depend upon farming (excluding diversification) to provide a significant contribution to the household income; Women associations, agricultural associations, smallholder producers associations (In this case, the association may apply on behalf of at least 5 farmers and must submit the list of farmers who intend to benefit from the grant). The association may apply for equipment, facility or transport means and must be used jointly by all members. This category of applicants aims to strengthen cooperation, better organization between farmers and supports initiatives of value chain and creating a brand for different products; Farmers and/or individuals who have benefited (cannot apply for the same activity!) from Grants scheme as one of the TEP service lines in Dragash/Dragaš and Shtërpcë/Štrpce Municipalities; Farmers dealing with beekeeping, those who have minimum 10 and maximum 40 bee colonies may apply for new equipment, improvement of infrastructure and marketing / branding purpose. However, the projects for increasing the number of bee colonies will not be funded; Farmers who may be cut off from markets due to geographic isolation, poor infrastructure, lack of information or a combination of these; whose rights to land and other resources may be weak; and who have not, as yet, managed to access markets in a way which can increase their productivity and lift them out of poverty; 5
Single women, heading a household that have insufficient income to meet their own food consumption needs and other basic needs (education, health, public services). They possess (very) small plots of arable land, are involved in subsistence farming (or below that) but are willing to switch (partially) and to embark on more marketoriented types of food production, processing, etc. However, they lack the resources to invest. In addition to struggling to get sufficient income, they take care of their children (below 18 years of age); Farmers associations, producers associations and cooperatives, with the membership of at least 5 members willing to improve production and marketing through joint supply of agricultural inputs and joint marketing efforts. In addition, the applicant should be in good standing with all civil and fiscal authorities. 4.2. Extra requirements ONLY for the selected applicants The applicant has to provide ownership documents of the land/site planned to be planted or provide at least agreement for use of land of minimum ten (10) years from the day of application. For the projects establishing or expanding fruit and vineyard production, the applicants will have to provide a physical and chemical soil analysis at the stage of the implementation. In addition, only certified fruit and vine seedlings will be accepted. In case of construction activities, the applicant has to provide the ownership document from the day of application! 4.3. Ineligible applicants Farms and enterprises exceeding annual financial turnover 15,000 Euros; Grant recipients or their close family members (i.e. living under one roof) who have benefited from previous LDF rounds that apply for the same project idea / activity Applicants from other municipalities (out of the target ones) Grant Beneficiaries from the first LDF Call and TEP Action, 2017 5. Size of grants The overall indicative amount made available under this call for proposal is EUR 150,000.00. The minimum amount of awarded grants is EUR 2,500.00 and the maximum is EUR 15,000.00. The maximum contribution of Interdev project will be at 85% of the total amount of the project. Therefore, a minimum of 15% of financial contribution is expected from the applicants which will be invested during the first phase of implementation. The final recommendation will be submitted to the ADC Technical Office in Prishtinë/Priština for final endorsement. An applicant may not submit more than one application under the LDF request for proposals The applicant s financial contribution must be proved by original invoices, bank transfers and warranty certification in case of new equipments. This will be done in first phase of the project implementation, which means that applicant s financial contribution has to be 6
invested and proved in the first phase of the project implementation. This will be inspected and verified by staff of LDF and InTerDev Project team. The applicant will provide minimum 15% of financial contribution for total eligible costs of the project, while UNDP/LDF will provide 85%. However, in cases when the applicant has difficulties in providing the co-financing, the team may recommend 100% financing after confirmation of such circumstances observed during the site visit. In addition, the applicants who have benefited from previous LDF rounds, may not apply for the same purpose and activity, but only for projects that would complete the cycle of the project (i.e. from production to processing / collection / modernization of farm / branding). This category of applicants will have to provide co-financing at the rate of 40%, while UNDP/LDF will contribute with 60% of the total approved budget. The beneficiaries from TEP action (2014 2016) may apply but have to provide a min cofinancing of 20% An applicant may not submit more than one application on behalf of the household and/or existing farm under the LDF request for proposals. The planned activities should start immediately after the contract signature and implementation period should be concluded latest by 10 th of December, 2018. 6. How to apply and submission deadlines? 6.1 Proposal Applicants should submit a proposal, where they should describe the project idea. The applicants can apply in English and local languages (Albanian and Serbian), using the format that can be downloaded from the LDF website: www.ldf-ks.org. Hand-written applications will not be accepted. Applications funding round Deadline for submission of proposals Grant funding to business initiatives in a gender sensitive manner for the local micro and small enterprises and farmers in the Municipalities of Dragash/Dragaš, Shtërpcë/Štrpce and Viti/Vitina Starting from: 15th of January until 09th of February, 2018 Applications received after the deadlines will not be accepted. 7
6.2 Evaluation of the proposals The evaluation of the proposals will be done by three (3) local field experts which will be selected and hired by UNDP Only successful applicants will be notified by latest within 1 month after the submission deadline. However, the final endorsement comes after conducting the site visit by LDF and InTerDev 2 team. Applicants who are not contacted latest by one month after the submission deadline, are considered unsuccessful. 6.3 Selection Criteria The score of the applicants will be given based on the following criteria: How realistic and feasible is the proposed activity? Strategy outlined (creativity) Capacity (enterprise, individual or community group) to manage the activity Appropriate and reasonable costs Number of job created and their sustainability based on the type / sector of the project Sustainability of the project The improvement of quality of life for farmers Improved productivity, the reduction of costs, and the increase of net farm income Impact of the project on Gender mainstreaming Impact of the project on Environmental protection and management, what impact will the project have on the environment have conditions put in place to avoid negative effects on natural resources on which the action depends and on the broader natural environment LDF may award none or only one Grant to the responsible applicant(s) whose application(s), conforming to these guidelines, reflects the objectives set up under mentioned project. LDF may also reject any or all applications. 6.4 Where and how to send the Applications Applicants are requested to submit one original proposal in A4 size, in sealed envelope. Prior to closing the envelopes, the project staff receiving the application, will check if the documents are complete and avoid the possibility of rejection due to technical issues. The applicant s biodata should be submitted in a separate sealed envelope using the forms available at: www.ldf-ks.org. Therefore the two envelopes should be placed in one outer 8
envelope A3 format. The complete application form (part A: technical application form), budget (part b: budget) and applicant s data (part c: personal information form) must be printed and supplied to the office of UNDP in all three target municipalities. The outer envelope must bear the title of the call for proposals: Grant funding to business initiatives in a gender sensitive manner for the local micro and small enterprises and farmers in the Municipalities of Dragash/Dragaš, Shtërpcë/Štrpce and Viti/Vitina 6.5 Information sessions The following information sessions will be organised by the LDF Foundation in the Municipalities of Dragash/s, Strpce/ Shterpce and Viti/Vitina: Information session Date Information session for the second call for proposal, Shtërpcë/Štrpce 15th of January, 2018 Information session for the second call for proposal, Dragash/Dragaš 15th of January, 2018 Information session for the second call for proposal, Viti/Vitina 16th of January, 2018 Additional info sessions will be organized for potential applicants with the following schedule - In Shtërpcë/Štrpce Municipality, village xx and xx on (date) at (venue) and village xx on (date) at (venue) - In Dragash/Dragaš Municipality, village xx and xx on (date) at (venue) and village xx on (date) at (venue) - In Viti/Vitina Municipality, village xx and xx on (date) at (venue) and village xx on (date) at (venue) - Moreover, the practical training sessions will be provided for the application process that will help applicants understand and be able to prepare an application for applying: The training dates for each municipality, will be communicated during info sessions. All potential applicants are encoruaged to attend. 9
6.6 Further information about the application Phone calls and meetings with the LDF staff are not allowed. Questions about the procedures not about the content may in addition be sent by e-mail to: info@ldf-ks.org no later than 5 days before the deadline for the submission of proposals 7. Grant Management Once the evaluation process is completed, pre-selected grantees will be asked by the LDF Foundation to provide at least three offers collected from different vendors for the needed equipment or services foreseen in the project proposals. The LDF Foundation will collect and control the offers to verify if the offers reflect a real market price. If the offers collected by the LDF Foundation are 20% cheaper than the average of the 3 offers provided by the applicant - the applicant will not be eligible for any further funding from the LDF. Afterwards, the sub contract agreements will be signed with each selected grantee between them and LDF Foundation. In the sub grant agreement, project expected results will be determined and agreed with the grantees. The applicant s financial contribution has to be invested in the first phase of the project implementation. This has to be proved with original invoices, bank transfers made to suppliers/contractors and warranty certification for the new equipment. The investments made have to be inspected by staff of LDF with the support from InTerDev staff members. In case the applicant fails to fulfill the requirements for financial contribution, the LDF Foundation reserves the rights to reallocate the funds to other projects. No advance payment will be provided by LDF to the selected grant recipients. The payments will be done based on reimbursement principle. The funds will be transferred by the LDF Foundation to the grantees in installments. LDF Foundation will conduct inspection or monitoring visits technically supported by InTerDev to verify that the project results are accomplished in line with the signed contracts and delivered invoices by the grantees, which will permit or disallow the installments for the selected applicants. In addition, the grant recipients will have to provide regular invoices and proof of payments in line with the legislation in Kosovo. The investements done by the LDF and financed by UNDP/Austrian Development Cooperation must be maintained for a minimum period of 3 years after project implementation. Monitoring and evaluation (M&E) will be carried out on regular basis by LDF staff and supported by InTerDev prioject team. 10