MILLENNIUM CHALLENGE ACCOUNT NAMIBIA

MILLENNIUM CHALLENGE ACCOUNT NAMIBIA LIVESTOCK MARKET EFFICIENCY FUND (LMEF FUND) GRANT MANUAL May 2011 MCA-N LMEF Grant Manual i

Acronyms and Initialisms GEC GM GRN LMEF MAWF MCA-N MCC NCAs TER US Grant Evaluation Committee (MCA-N LMEF) MCA-N Manager: Agriculture Grants Government of the Republic of Namibia Livestock Market Efficiency Fund Ministry of Agriculture, Water and Forestry Millennium Challenge Account Namibia Millennium Challenge Corporation Northern Communal Areas Technical Evaluation Report United States MCA-N LMEF Grant Manual ii

Table of Contents 1. Summary... 1 2. Livestock Market Efficiency Fund... 1 2.1 Background... 1 2.2 Objective of the Livestock Market Efficiency Fund... 1 3. Rules for Application... 2 3.1 Eligible Applicants... 2 3.2 Ineligible Applicants... 2 3.3 Eligible Activities... 3 3.4 Ineligible Actions... 3 3.5 Allowable Costs... 5 3.6 Non-Allowable Costs... 6 3.7 LMEF Grant Mechanism... 6 3.8. Time and Funding Limitations for Grants... 7 4. Grant Awarding Procedures... 7 4.1 Notional Timeframe... 7 4.2 Evaluation of Concept Papers... 8 4.3 Evaluation of Full Proposals... 9 APPENDIX I Sample Call for Concept Papers... 12 APPENDIX II LMEF Concept Paper Application Form... 13 APPENDIX III Sample Request for Full Proposals... 16 APPENDIX IV LMEF Full Proposal Application Form... 17 APPENDIX V Grant Agreement... 26 MCA-N LMEF Grant Manual iii

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 have 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 Grants Manager at Tel + 264 (61) 410 400, or email: agricfund@mcanamibia.org. Please consult our website (www.mcanamibia.org) for any updates relating to the Livestock Market Efficiency Fund. MCA-N LMEF Grant Manual iv

1. Summary The Livestock Support Activity within the Millennium Challenge Account Namibia (MCA-N) programme includes a Livestock Market Efficiency Fund (LMEF) Sub-Activity, to be managed by MCA-N. This Grant Manual establishes the policies and procedures for the LMEF and provides information to Applicants and other interested parties about how the LMEF will be managed and operated, eligibility requirements for Applicants and general requirements for the submission and evaluation of Concept Papers and Full Proposals. For additional information on the Livestock Support Activity under the Agriculture Project, please visit http://www.mcanamibia.org. 2. Livestock Market Efficiency Fund 2.1 Background The Livestock Support Activity is part of the Agriculture Project in the MCA-N Compact (the agreement between the United States (US) Federal Government and the Government of the Republic of Namibia (GRN), which is funded by MCC and managed by MCA-N). The overall aim of the Agriculture Project is to reduce rural poverty through investments that achieve a sustainable increase in the economic performance of the agricultural sector. The agriculture interventions in the Northern Communal Areas (NCAs) 1 are focussed on improving animal health status through the establishment of new State Veterinary Offices, the implementation of an animal identification and traceability system, a pilot project fostering community-based land-use systems supported by training in the fields of rangeland management, animal husbandry and marketing and business skills, and some infrastructure support. In addition, the LMEF will support demand-driven actions aimed at improving the performance of the livestock sector in the NCAs. Information on the Agriculture Project can be found at www.mcanamibia.org. 2.2 Objective of the Livestock Market Efficiency Fund The objective of the LMEF is to increase incomes to livestock producers and ensure the continued growth of the livestock sector. It is expected that this objective will be achieved through improving livestock marketing, eliminating barriers to existing and new markets and improving the marketability of livestock for broad application to the livestock industry in the NCAs to ensure the competitiveness and sustainability of the livestock sector. Given the lack of disease-free status in the NCAs and limited market access, farmers face high costs in the formal marketing of animals. Combined with the open access grazing systems, poor market incentives lead to overstocking of rangelands and degradation of the resource base, and consequently to poor livestock nutrition and productivity. The estimated average off-take rate in the NCAs is only 7%, compared to 25% in the regions south of the Veterinary Cordon Fence. The LMEF should therefore impact on the livestock-producing communities in the NCAs through demand-driven Actions that will improve the incomes of livestock producers. This will enable the livestock producers to overcome the constraints of a lack of flexibility and efficient market outlets, and a poorly-functioning communal land tenure system. 1 The NCAs are defined as the area north of the Veterinary Cordon Fence. MCA-N LMEF Grant Manual Page 1

The following practical examples of projects that may be funded by LMEF are provided as guidelines; they are not intended to constitute a comprehensive list or provide any guarantee of funding: Research/projects addressing traditional/cultural/educational issues hampering livestock marketing in the NCAs; Activities leading to the achievement of disease-free status in the NCAs, thereby opening markets; The expansion of local, regional and global markets for livestock produced in the NCAs; The provision of livestock market information. All applications should demonstrate the sustainability of the proposed Action, take an all inclusive approach and fulfil the overall criteria as stipulated in this Manual. 3. Rules for Application These guidelines set out the rules for the application, selection and implementation of the Actions to be financed by MCA-N under the LMEF. 3.1 Eligible Applicants GRN agencies, farmers and trade associations, academic institutions, non-governmental organisations, firms and consortiums of the above are eligible, provided that they: Have the financial capacity to execute the Grant, as evidenced by information provided in 2.6 of the Concept Paper Application Form (Appendix II); Have the technical capacity and experience, as evidenced by information provided in 5.1 and 5.2 of the Full Proposal Application Form (Appendix IV); and Complete the Eligibility portion of the Concept Paper Application Form in full and cooperate with MCA-N if requested to attend interviews and site visits. 3.2 Ineligible Applicants The following entities are NOT eligible for funding from the LMEF: Individuals; Unregistered groups (unless teamed up with registered organisations); Political parties, groups or institutions, or their subsidiaries and affiliates; Organisations that advocate, promote or espouse anti-democratic policies or illegal activities; or Any person or entity that has been blacklisted in 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 entity from a country or from a firm that is organised in or has its principal place of business in or a significant portion of its MCA-N LMEF Grant Manual Page 2

operations in any country that is subject to sanction or restriction by US law or policy (an Ineligible Country ). At the time of publication of this Manual, this list included Cuba, Iran, North Korea, Sudan and Syria. (Refer to the MCC website (www.mcc.gov) for further information in this regard.) 3.3 Eligible Activities To be eligible for a Grant award the proposed action must address the objective of the Livestock Market Efficiency Fund, which is to increase incomes to livestock producers and to ensure continued growth of the livestock sector in the NCAs. The LMEF will only provide Grants for actions that have substantial net benefits for groups of livestock producers that has some element of a public good that makes the proposed Action not viable for individual livestock producers or even small groups of livestock producers. A public good is a good or service in which the benefit received by any one party does not diminish the availability of the benefits to others, and where access to the good cannot be restricted. The defining aspects of public goods are that they are non-rivalrous and non-excludable. Non-rivalry means that consumption of the good by one individual does not reduce availability of the good for consumption by others; and non-excludability that no one can be effectively excluded from using the good. For the purposes of this Manual we are not requiring that the proposed Action meet the strict theoretical definition of a public good, but that the Action has an element of a public good that makes it impractical for a small group of livestock producers or a private business to provide the good or service. This may be because it would be difficult to charge livestock producers for using the good or service because the cost of effectively excluding those that do not pay would be too high. Or, this may be the case because neighboring farmers benefit from the individual farmer undertaking the proposed Action. The examples of actions provided on Page 2 have elements of public goods that may make them eligible for the LMEF, to specifically explain the rationale behind a few examples: Disease Free Status and improved access would benefit all farmers and it would not be possible to exclude some farmers from these benefits; The expansion of trade access to new markets Livestock market information distributed through public channels is a free good to all. As such, the LMEF will not finance actions for which a private entity s investment would result into a sufficient revenue (or payback) to cover the investment costs. The action must be economically viable in the sense that the projected benefits must exceed the projected costs of the action. Simple quantitative analysis of costs (as provided in the Budget) and benefits (as provided under Section 3.1(ii) of the Full Proposal Application Form) is a required element of the application process. 3.4 Ineligible Actions The following actions will NOT be eligible for Grants through the LMEF: Actions that are inconsistent with international standards of human rights, or with democratic goals of racial and ethnic tolerance and harmony; MCA-N LMEF Grant Manual Page 3

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 the enterprise in the US, and thus reduces the number of employees at the enterprise in the US; 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 likely to cause a significant environmental, health or safety hazard, as defined by the MCC Environmental Guidelines (www.mcc.gov); and Any other Action that would violate the restriction on the use of MCA-N funding set forth in Section 2.3 of the Compact. 3.5 Allowable Costs MCA-N will issue Fixed Obligation Grants, structured on the basis of fixed payments made upon approval of pre-determined deliverables. Prior to signing a Grant Agreement, however, the parties must agree on a fair cost for the work to be undertaken, which will involve a detailed review of the proposed budget for the grant and a justification describing how the Applicant calculated the proposed budget. The following is a list of allowable activity-related costs: Professional fees 2 ; Labour of project staff as per approved work plan; Honoraria 3 : In line with MCC regulations, only nominal and occasional payments of honoraria to employees 4 of GRN and its parastatals may be made for project-related activities. Such payments must clearly be 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 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; Professional materials, non-periodical publications, and data; Transportation costs and per diems as necessary; 2 Rates must be determined to be reasonable based on current market trends. MCA-N reserves the right to negotiate specific professional fee rates. 3 An honorarium is a payment or an award granted in recognition of a short-term professional service 4 A Namibian Government employee is an employee paid by the Namibian Government, occupying an established position, either temporary or permanent part-time or full-time within a Namibian Governmental institution. A Namibian Governmental institution is an organization in which the Government owns at least a fifty percent share or receives at least fifty percent of its financial support from the Government. MCA-N LMEF Grant Manual Page 4

International travel; Communication costs, including internet use, related to the Action; Printing, publication and dissemination costs; Indirect costs: Rental of office space, office supplies and other specifically defined administrative costs, prorated to reflect the share of the LMEF-funded Action within the organisations total activities. All indirect costs must be itemised and priced, while the following thresholds will apply for costs to cover the administrative overheads incurred by the Applicant: For total grant budgets up to one million Namibian dollars, a total sum not exceeding 10% of the direct Allowable Costs of the Action/s may be claimed, For total grant budgets between two and four million Namibian dollars, a total sum not exceeding 7% of the direct Allowable Costs of the Action/s may be claimed, For total grant budgets between five and seven million Namibian dollars, a total sum not exceeding 5% of the direct Allowable Costs of the Action/s may be claimed, For total grant budgets between eight and ten million Namibian dollars, a total sum not exceeding 3% of the direct Allowable Costs of the Action/s may be claimed; Honoraria to non-employee project participants, such as survey respondents, as approved by MCA-N; and Costs of Action-specific purchases or activities deemed necessary and included in Appendix IV Section 4 of the Full Proposal Application (Budget) and approved in the Grant Agreement (e.g. equipment, supplies, training materials, workshops, etc.). 3.6 Non-Allowable Costs Creation of endowments; Any previous obligations on the part of the GRN to the Grantee; Bad debts of the Grantee; Fines imposed on the Grantee; Penalties imposed on the Grantee; Ceremonies, parties, celebrations or representation expenses; Purchases of goods or services that have their origin in Cuba, Iran, North Korea, Sudan or Syria, or other countries or suppliers as may be identified by the US Government s Consolidated List of Debarred, Suspended or Ineligible Contractors; Profit, i.e. Grant funds may not be used to generate profit for the Applicant; Labour costs for GRN employees and state-funded university and research institute employees as outlined above; Any expenses related to goods or activities that are illegal under Namibian or U.S. law; MCA-N LMEF Grant Manual Page 5

Purchase of vehicles 5 ; and Purchases or activities not necessary to accomplish the Grant purpose as determined by MCA-N. 3.7 LMEF Grant Mechanism All Grant Awards under the LMEF shall be regulated by a Grant Agreement entered into between MCA-N and the Grantee (see indicative Grant Agreement attached as Appendix V). Budget payments will be contingent on the Grantee s successfully meeting of deliverables, and on approval of the Actions technical and monitoring reports for the specified period. A schedule of deliverables should be proposed in the Application and agreed to in the Grant Agreement. Applications submitted by an entity who considers that teaming with another entity (or entities) (including via consortium) may enhance the team s expertise and capacity for the implementation of the proposed Action will be acceptable; all members will be jointly and severally liable for accomplishing the Action s objective/s. Between any combinations of eligible Applicants, consortiums may be formed and sub-contracts entered into. Concept Papers and Full Proposals by consortiums must clearly identify the entity which will function as the lead entity for the purpose of the Grant Agreement and compliance with all requirements set forth in the LMEF Grant Manual and the Grant Agreement. Grant closeout is accomplished by MCA-N s acceptance of the final deliverable and approval of payment. 3.8. Time and Funding Limitations for Grants As a general guideline, proposed budgets for the Action should fall between five-hundred-thousand Namibia Dollars (N$500 000) and ten-million Namibia Dollars (N$10 000 000) over a maximum period of two years. Justified longer periods of implementation are possible, but may not exceed the end of May 2014. In exceptional circumstances where the proposed Action has a large quantifiable benefit stream, however, amounts outside of the budget range may be considered. ] Depending on the availability of funds, a further Call for Concept Papers may be considered. Each public Call for Concept Papers will clearly indicate the deadline for the submission and the method and place for delivery. Any expenditure that occurs prior to or after the Action date specified in the Grant Agreement is strictly not allowed. 5 MCA-N uses Government of the Republic of Namibia rates for daily subsistence and transport costs. MCA-N LMEF Grant Manual Page 6

4. Grant Awarding Procedures 4.1 Notional Timeframe The Call for Concept Papers will be publicly advertised to provide all potential and eligible Applicants with an equal opportunity to access Grants. Announcements will be published in at least two leading newspapers and the MCA-N website (www.mcanamibia.org). Following the announcement, interested Applicants will be required to submit a Concept Paper following the format provided in the LMEF Concept Paper Application Form (Appendix II). The due date for Concept Papers will be no less than four (4) weeks after the publication date of the announcement. The following table outlines a notional timeframe leading up to Grant Agreement signature. After the Concept Papers have been submitted, they will be evaluated, short-listed and approved prior to the development of Full Proposals. This process is expected to take in the region of seven (7) months, and is expanded on in the table below. In determining their starting and closing dates as well as designing their work plans, Applicants should consider this seven month period needed for the application and evaluation processes. MCA-N LMEF Grant Manual Page 7

ACTIVITY / ACTION Submission of Concept Paper Evaluation of Concepts Papers Approving short-listed Concept Papers Development and submission of Full Proposals Grant Evaluation Committee Evaluation of Full Proposals Develop Technical Evaluation Report (TER) Approval of TER INDICATIVE TIMEFRAME 4 weeks after public Call for Concept Papers 2 weeks 2 weeks 6 weeks from date of notification 4 weeks from date of deadline 1 week 1 week Grant Agreement Negotiations (This will include a verification of costs for reasonableness and eligibility, as well as refinement of the Monitoring and Evaluation Plan, Workplan, Environmental and Social Mitigation Plan (if applicable) and other aspects of the Proposal.) Approval of Grant Agreement 5 weeks from approval date 3 weeks Applicants submitting proposals where the construction of infrastructure will be needed should also take note of required timelines involved in the administrative processes when determining the total time available for Action implementation. Thus, as an example for this current Round starting May 2011, an application for infrastructure will require the following timelines: Call for concept until the agreement is approved and signed 7 months Procuring and designing of infrastructure architectural plans 6 months Procuring the construction contractor 3 months Retention period 12 months This in essence leaves a construction period of only 10 months. 4.2 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 Grant Evaluation Committee (GEC) 6 will screen the Concept Papers to verify that the proposed Action: 6 This committee will include MCA-N and independent reviewers to increase objectivity and minimise conflicts of interests in the selection/award process; it is responsible for reviewing all evaluations prepared by the Grant Manager. MCA-N LMEF Grant Manual Page 8

i) Is in keeping with the LMEF objective and relevance; ii) iii) iv) Demonstrates that the proposed activity is in the public good; Will lead to benefits for livestock sector in the NCAs that exceed the costs; Is from an eligible Applicant (or Consortium) 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 submit Concept Papers will be notified as to whether their Concept Papers are accepted or rejected. The MCA-N Agriculture Grant Manager (GM) will serve as the primary contact person for all potential Applicants and in addition will prepare the Concept Notes for evaluation by the GEC. The GM will also forward the list of recommended, screened Concept Papers to the Livestock Stakeholders Committee. 7 This Committee will note the types of Concept Paper and will liaise with the livestock sector. Please note that in NO way does the approval of a Concept Paper and the request to submit a Full Proposal imply the automatic approval of the Full Proposal and the awarding of a Grant. 4.3 Evaluation of Full Proposals The following evaluation criteria will be applied by the GEC in the evaluation of the applications 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. 7 This committee, which is a requirement of the Compact Agreement between the Government of the Republic of Namibia and the Millennium Challenge Corporation, includes members from the public and private sectors and civil society with a solid understanding of socio-economic, technical and environmental issues in the livestock sector. The committee monitors the execution of the tasks and responsibilities allocated to the Ministry of Agriculture, Water and Forestry (MAWF) as per the Implementing Partner Agreement between MCA-N and the MAWF, reviews and approves Progress Reports for submission to the MCA-N Management Unit, ensures that project Activities contribute to the achievement of the livestock indicators as outlined in the Monitoring and Evaluation Plan, and advises the MCA-N Management Unit on policy matters pertaining to the Livestock Support Activity, thereby assisting the MCA-N Management Unit to steer the Livestock Support Activity within the MAWF and the livestock sector. MCA-N LMEF Grant Manual Page 9

LMEF FULL PROPOSAL EVALUATION GRID SECTION 1 1.1 1.2 1.3 1.4 2 2.1 2.2 2.3 2.4 2.5 Organisational Capacity: Does the Applicant demonstrate adequate financial and organisational capacity to implement the proposed Action? Do the Applicant and/or partner organisation(s) have sufficient technical expertise and experience? (related to the issues to be addressed) Do the Applicant and/or partner(s) have sufficient experience of project management to ensure that the proposed Action is successfully implemented? Do the Applicant and/or partner(s) have sufficient management capacity (including staff, equipment and the ability to handle the budget for the Action)? Do the Applicant and partner(s) demonstrate a sound working knowledge of the bio-physical and social context of the proposed site(s)? Impact: Is it likely that the benefits for the livestock sector will exceed the costs of the proposed Action? Are the proposed activities likely to increase the incomes of livestock producers in a sustainable way that is significant in relation to the estimated costs? Have the needs of the proposed target groups been clearly defined, and does the proposal address them appropriately? Is the proposed Action likely to have multiplier effects (including scope for replication and extension of the outcome of the Action, and dissemination of information)? Are the expected results of the proposed Action financially sustainable? (How will the activities be financed after the LMEF ends?) YES/NO only if applicable Are the expected results of the proposed Action institutionally sustainable? (Will structures allowing the activities to continue be in place at the end of the Action? Will there be local ownership of the results of the Action?) YES/NO only if applicable 3 Methodology: Is there sufficient detail and coherence to the proposed Methodology? 3.1 3.2 How coherent is the overall design of the Action? (In particular, does it reflect the analysis of the problems involved, include a market-driven strategy and take external factors into account?) Is the target group s and final beneficiaries level of involvement and participation in the Action satisfactory? 3.3 Is the plan for the monitoring, evaluation, and dissemination of results clearly articulated? 3.4 Are the activities proposed appropriate, practical, and consistent with the objectives and expected results? 3.5 Is the Action Plan clear and feasible, with a delineated timeline? 4 Environmental and Social Impact: Does the proposal adequately identify and mitigate environmental and social impacts? MCA-N LMEF Grant Manual Page 10

4.1 Are the expected results of the proposed Action environmentally and socially sustainable? (Does the Action promote THE sustainable use of natural resources?) YES/NO only if applicable 4.2 Does the proposal promote gender equality and equal opportunities? YES/NO only if applicable 4.3 Is there a plan to identify measures that mitigate any negative environmental or social impacts? YES/NO only if applicable The GEC will recommend Full Proposals for Grant funding. On this recommendation and the approval of the TER, Grant Agreement Negotiations will commence. However, the final awarding of a Grant will be subject to the availability of funding and MCA-N approval. The GM will notify the Applicants of the decision of the GEC. The GM will also forward the list of approved Applicants to the Livestock Stakeholders Committee. MCA-N LMEF Grant Manual Page 11

APPENDIX I Sample Call for Concept Papers Millennium Challenge Account Namibia (MCA-N) announces the [ROUND #] of the Livestock Market Efficiency Fund ( LMEF ), a Sub-Activity of the Agriculture Project. The objective of the Livestock Market Efficiency Fund is to increase incomes to a large number of livestock producers in the NCAs and to ensure continued growth in the livestock sector. It is expected that the objective will be achieved through improving livestock marketing, eliminating barriers to existing and potential new markets, and improving the marketability of livestock. Broadly applied to the livestock industry in the NCAs, these measures should ensure the competitiveness and sustainability of the livestock sector. This announcement invites qualified and eligible Government of the Republic of Namibia agencies and other organisations to submit Concept Papers. The GEC, with the approval of MCA-N, will select the most qualified Concept Papers and invite each of those Applicants to submit a detailed Application for a Grant under the guidelines and procedures set forth in the LMEF Manual, which is available at www.mcanamibia.org. All Applicants should thoroughly and completely review the LMEF Manual prior to submitting a Concept Paper. Concept Papers must be submitted in hardcopy using the template available at www.mcanamibia.org and include one original and three hard copies; AND in electronic format (virus-free CD-Rom, MS WORD/MS EXCEL or compatible/ equivalent, format clearly indicated) to: Livestock Market Efficiency Fund MCA Namibia Atlas House Cnr. of Sam Nujoma Drive and Mandume Ndemufayo Avenue P.O. Box 23005 Windhoek, Namibia Concept Papers must be received no later than [DATE & HOUR]. Any Application received after the deadline will be automatically rejected, even if the postmark indicates a date preceding the deadline, and even if the delay is due to a courier service. Questions may be addressed to the same address, or to: Phone number: +264 (61) 410 400 Email address: agricfund@mcanamibia.org MCA-N LMEF Grant Manual Page 12

APPENDIX II LMEF Concept Paper Application Form This Concept Paper Application Form must be completed in full; failure to do so will result in the Application not being considered. The maximum length of each section must be adhered to. Applications must be completed in Calibri font, size 11. SECTION 1 Applicant Information PROPOSED ACTIVITY TITLE : LOCATION/S : DURATION OF THE ACTION : PROPOSED STARTING DATE : ESTIMATED COST OF THE ACTION (N$) : ESTIMATED BENEFIT OF THE ACTION (N$): AMOUNT REQUESTED FROM MCA-N (N$) : NAME OF THE APPLICANT : TYPE OF ORGANISATION & REGISTRATION No. : COLLABORATIVE PARTNERS : CONTACT PERSON/S : POSITION IN ORGANISATION : TEL : FAX : EMAIL : POSTAL ADDRESS : SIGNATURE OF THE APPLICANT* DATE : * By signing this Application Form you certify that the content contained herein is a true reflection of the facts. MCA-N LMEF Grant Manual Page 13

SECTION 2 Proposed Activity Details 2.1 Summary of the proposed research (Max. 10 lines) 2.2 Relevance (Max. 1 page). Please provide details on the following: 2.2.1 How is the proposed research relevant to the development of the livestock sector in Namibia s Northern Communal Areas, and why are these funds are needed? 2.2.2 What are the problems to be resolved and the needs to be met? 2.2.3 Does the research build on previous studies/interventions, and if so, on which? 2.2.4 Who are the beneficiaries and how will it benefit them? Please quantify if possible. 2.2.5 What are the objectives and how will the proposed Action lead to expected results/impacts? 2.2.6 Do the benefits significantly outweigh the costs? 2.3 Methodology (Max. 1 page). Please provide details on the following: 2.3.1 What are the main activities? 2.3.2 Explain your methodology with respect to the implementation of the above activities? 2.3.3 Will the intervention have any multiplier effects? If so, provide details. 2.3.4 Who are the main implementing partners, what is your relationship to them, and how will they be involved in the implementation of the research activities? 2.4 Environmental impact and gender inequality (Max. 10 lines) 2.4.1 Please provide any details you consider important with respect to either positive or negative environmental impacts. 2.4.2 Please provide details on how this Concept promotes gender equality and equal opportunities. 2.5 Operational capacity (Max. 15 lines) 2.5.1 What is the legal status of your organisation and of that of your partner(s)? 2.5.2 What is the experience of your organisation (and partner(s)) with the aspects to be addressed? 2.5.3 What is the related experience and technical expertise of the members of the team? List three (3) previous projects similar in nature that your organisation has been involved in. 2.6 Financial accountability 2.6.1 Provide financial summary statements of your organisation(s) for the past three years. 2.6.2 Is your accounting system computerised, and what programme do you use? 2.6.3 When was your last financial audit conducted, and by which firm? MCA-N LMEF Grant Manual Page 14

2.7 Eligibility statement A statement presented on your organisation s letterhead and signed by the head of the organisation must be submitted together with this Application Form, stating the following: 2.7.1 That the organisation is an eligible organisation, legally constituted under Namibian law, and with legal status; 2.7.2 That the organisation has a management structure that includes appropriate staffing and a plan for appropriate on-going staff training and development; 2.7.3 That the organisation has received a copy of the LMEF Grant Manual and that the Applicant s management has read and understood its contents; and 2.7.4 That the organisation confirms that at the time of the Application no condition exists within the organisation or with respect to the organisation s management that renders the organisation ineligible for a Grant directly or indirectly funded by either MCA-N or the Government of the United States. MCA-N LMEF Grant Manual Page 15

APPENDIX III Sample Request for Full Proposals Following a review of the Concept Paper presented by [Insert name of Applicant] for the purposes of funding [insert name of Action], Millennium Challenge Account Namibia (MCA-N) invites [insert name of Applicant] to submit a detailed application ( Application ) for a Grant under the guidelines and procedures set forth in the LMEF Manual, which is available at www.mcanamibia.org. All Applicants should thoroughly and completely review the LMEF Manual prior to submitting a Full Proposal. This invitation is valid only for [insert name of Applicant] to submit an Application for [insert name of Action]. A conference open to all Applicants will be held on [DATE] Full Proposal Applications must be submitted using the template available at www.mcanamibia.org and include one original and three copies in hard copy, AND in electronic format (virus-free CD-Rom, MS WORD/MS EXCEL or compatible/ equivalent, format clearly indicated), to: Livestock Market Efficiency Fund MCA Namibia Atlas House Cnr. of Sam Nujoma Drive and Mandume Ndemufayo Avenue P.O. Box 23005 Windhoek, Namibia Applications must be received no later than [date & hour]. Late submissions will not be accepted. Questions may be addressed to the same address, or to: Phone number: +264 (61) 410400 Email address: agricfund@mcanamibia.org MCA-N LMEF Grant Manual Page 16

APPENDIX IV LMEF Full Proposal Application Form This Full Proposal Application Form must be completed in full. Failure to do so will result in the Application not being considered. The maximum length of each section must be adhered to. Applications must be completed in Calibri font, size 11. SECTION 1 Applicant Information PROPOSED RESEARCH TITLE : RESEARCH LOCATION/S : TOTAL COST OF THE ACTION (N$) : ESTIMATED BENEFIT OF THE ACTION (N$) : AMOUNT REQUESTED FROM MCA-N (N$): DURATION OF THE ACTION : PROPOSED STARTING DATE : NAME OF THE APPLICANT : TYPE OF ORGANISATION & REGISTRATION No : COLLABORATIVE PARTNERS : CONTACT PERSON/S : POSITION IN ORGANISATION : TEL : FAX : EMAIL : POSTAL ADDRESS : SIGNATURE OF THE APPLICANT* DATE : * By signing this Application Form you certify that the content contained herein is a true reflection of the facts. MCA-N LMEF Grant Manual Page 17

SECTION 2 Description of the Action 2.1 Abstract or Summary of the Action Max. 15 lines. It should include (i) the aim of the Action; (ii) the intended impact and beneficiaries; (iii) the main Activities and how these will produce the intended impacts; and (iv) the applicable theme associated with this Call. 2.2 Aim and Objectives Not longer than 1 page. Please describe the overall aim/s and the specific objective/s of the proposed Action and how these will be verified. 2.3 Justification Max. 3 pages. Please provide information on the following: (i) (ii) (iii) (iv) (v) (vi) (vi) Statement of the problem including the perceived needs and constraints of the livestock sector in Namibian NCAs; The relevance of the Action to the development of the livestock sector in NCAs; An explanation of why the LMEF is needed for this proposed Action, and why the private sector cannot provide the services (this should include a statement regarding whether the proposed Action is in the public good); An explanation of how the proposed Action has been developed including, for example, the level of participation of the target group/s; A list of the target groups and number of direct and indirect beneficiaries, and how it will benefit them (You will need to expand on and quantify this in Section 3.1 below); The potential impact/benefits to livestock producers; and The inherent or potential risks involved in achieving intended impacts or that could negatively impact on the success of the Action, and any mitigation measures proposed. 2.4 Description of Activities Max. 2 pages. What Activities will be carried out to produce the proposed results and objectives? The information should be contained in the format of the following table. Activity Timeframe Completed Deliverable Responsibility Objective 1. Activity 1.1. Activity 1.2. Objective 2. MCA-N LMEF Grant Manual Page 18

Activity 2.1. Activity 2.2. Activity 2.3. Note: Applicant may add as many rows as needed. 2.5 Methodology Max. 4 pages. Please provide information on the following: (i) (ii) (iii) (iv) The method for implementing the proposed Activities; The reason for this methodology; Previous research or work that the proposed Action builds on; and A list of the partners and the role of each partner in the proposed Action. 2.6 Environmental and Social Assessment Max. 2 pages. What are the potentially significant environmental and social impacts (both positive and negative) of the proposed Action/s? Please describe each impact in detail. Also consider in your response any potential long-term impacts. If any of the above impacts are negative, please describe what mitigation measures are proposed. Please note that the information provided must be truthful and reliable. The Applicant is accountable for any wrong and misleading information that may be provided in this questionnaire. Based on the information provided, MCA-N will decide if a more comprehensive Environmental and Social Assessment is required. 2.7 Workplan Please provide a detailed workplan for YEAR 1 with key deliverables for the proposed Action. The workplan should not include real dates, but should indicate month 1, month 2 etc. It is important that this Action Plan be as accurate as possible as it will form the basis for the completion of the deliverables schedule against which payments will be made. However, it is also advised to retain a degree of flexibility when completing the table. Only the main Activity titles should be indicated in the table based on those listed in Section 2.4 above; shade in the months per Activity where applicable. Insert additional rows if needed. WORKPLAN YEAR 1 MONTH 1 2 3 4 5 6 7 8 9 10 11 12 ACTIVITY TITLE Key deliverables per Activity IMPLEMENTING RESPONSIBILITY 1 2 MCA-N LMEF Grant Manual Page 19

2.1 2.2 3 Ect. Ect. If the proposed Action is for a period longer than 12 months, please complete the table below which provides an overview of the proposed implementation of the Activities in the second year. Only the main Activities need be included in this table. It should be noted that if the proposed Action is for longer than two years, a detailed workplan for the second year will be required before any payments for Activities in the second year can be made. WORKPLAN YEAR 2 MONTH 1 2 3 4 5 6 7 8 9 10 11 12 ACTIVITY TITLE Key deliverables per Activity IMPLEMENTING RESPONSIBILITY 1 2 2.1 2.2 3 Ect. Ect. SECTION 3 Expected Results 3.1 Expected Results and Impact Max. 3 pages. a) Please define the program logic and all expected results, i.e., outputs, outcomes, and impacts, which the proposed Action will be targeting. b) Please provide detailed information on how the Action will impact: (i) The development of the livestock sector in the NCAs, from both an economic and a technical point of view. Please quantify the potential benefits as far as possible. MCA-N LMEF Grant Manual Page 20

(ii) The situation of the beneficiaries/target group/s. This should include both direct and indirect beneficiaries. Please quantify the potential benefits as far as possible. 3.2 Monitoring and Evaluation Plan Monitoring and Evaluation are important tools for both MCA-N and the implementer of the Action to monitor that the Activities are being implemented according to the workplan and that the Activities are on course to achieve the stated results of the Action. Evaluation is important for assessing whether the objective/s and the results have been realised and for gleaning any lessons that should be learnt from the Action. In completing the following table, Applicants should describe what processes and indicators will be used to monitor and evaluate the proposed Action. The table below should be used as a template for the Monitoring and Evaluation Plan. Activities (Please include all activities listed in the Description of Activities section above, as well as indicators for Expected results and impact in section 3.1) Results* (the expected status after activity implementation) Target date (within what timeline do you aim at achieving the stated results) Indicator (how you will measure the achievement of results) Definition (define the indicator in detail) Reporting Interval (monthly, quarterly or annually) Data Source (Project reports, or other sources) Objective 1: [Insert objective and key indicator for objective] Activity 1: Activity 2: Activity 3: Activity 4: Objective 2: [Insert objective and key indicator for objective] Activity 5: Activity 6: Activity 7: Activity 8: MCA-N LMEF Grant Manual Page 21

Note: This table can be presented in landscape format. If required, additional rows can be added by the Applicant. The Applicant is not necessarily required to have two activities per result as the template only makes use of an example; one may even have three activities that would lead to one result. One may also have one result which is measured by one indicator or more. *The Grantee shall work with MCA Namibia to document and monitor expected impacts and results, as outlined in the Expected Results and Impacts section above, through the M&E Plan. With specific reference to the Monitoring and Evaluation Plan, the following should be noted: The Monitoring and Evaluation Plan provided by the Applicant in the table above might have to be revised during Grant Agreement negotiations as indicated in the notional timeframe provided in Section 4.1 in the LMEF Grant Manual, or subsequently. In addition to an evaluation of the individual Grants, MCA-N and or MCC might during the course of the implementation of the MCA-N programme decide to conduct an evaluation of the LMEF as a whole, in which case Grantees may be requested to provide information or participate in workshops. 3.3 Dissemination of Results Max. 1 page. Please outline the strategy and methods for the dissemination of the research findings both within the target area(s) of the Action and to relevant audiences at national, regional and international levels. Your outline should include: Target area; National level communication; and Regional and International level communication. Please note that the Grantee is expected to coordinate with MCA Namibia to transparently and periodically report on progress made on the grant through the M&E plan indicators and reporting, as well as dissemination of information on the ultimate impact of the Grantee s activities. 3.4 Multiplier Effects Max. 1 page. Describe the potential for the replication of the Action outcomes. SECTION 4 Budget A detailed budget for the proposed Action must be completed according to the format presented below. The Budget should be submitted as a separate excel file together with the Full Proposal Application. ITEM UNIT No OF UNITS UNIT COST TOTAL COST (N$) 1 Human Resources / Professional Fees 1.1 Professional fees 1.2 Labour costs MCA-N LMEF Grant Manual Page 22

2 Travel 2.1 Per diem 2.2 Transport cost 2.3 Air fares 3 Equipment and Supplies 3.1 4 Operational Costs 4.1 5 Workshops 5.1 6 Other Costs 6.1 Sub Total 7 Indirect Costs (refer to 3.5 Allowable Costs) Grand Total SECTION 5 Information on the Applicant and Partners 5.1 Experience of similar Actions Max. 3 pages. Please list a minimum of three (3) previous similar Actions undertaken in the last five (5) years, including the following information: (i) (ii) The title of the Action; The objective/s of the Action; (iii) The main results of the Action; (iv) The role of your organisation, including the team leader; and (v) The cost and source of the funding for the Action. MCA-N LMEF Grant Manual Page 23

5.2 Description of partners The following table must be completed for each partner in the proposed Action(s). In addition, the CV of those who will be involved in the Action must be submitted. TITLE OF ACTION(S): DESCRIPTION OF PARTNERS Full legal name (business name) Nationality Legal status Official address Contact person Telephone number Fax number Email address Experience with similar Actions, in relation to role in the implementation of the proposed Action History of cooperation with the Applicant Role and involvement in preparing the proposed Action(s) Role and involvement in implementing the proposed Action(s) 5.3 Partnership statement The description of the partner form in 5.2 above must be accompanied by a partnership statement on an appropriate letterhead signed by each partner and by the Applicant. The statement should include the following: We have read and approved the contents of this Application to the MCA-N LMEF and agree to comply with the rules and responsibilities detailed in the Application Form. Name: Organisation: _ Position: MCA-N LMEF Grant Manual Page 24

Signature: Place: Date: 5.4 Declaration by the Applicant A signed declaration must be submitted by the lead organisation / Applicant. It should also appear on an appropriate letterhead. The declaration should include the following: I the undersigned, being the person responsible in the Applicant organisation for the proposed Action(s), certify that the information given is true and correct at the time of submission. Name: Position: Signature: Place: Date: MCA-N LMEF Grant Manual Page 25

APPENDIX V Grant Agreement This GRANT AGREEMENT (this Agreement ), dated [day, month, year] is made between MCA- Namibia (hereinafter called Grantor ), and [name of organisation], [type of entity] (hereinafter called Grantee ) (each, a Party, and together, the Parties ). PREAMBLE WHEREAS, the United States of America, acting through the Millennium Challenge Corporation ( MCC ), and [insert name of country] (the Government ) executed the Millennium Challenge Compact on [insert date] (as amended or otherwise modified from time to time, the Compact ) that sets forth the general terms and conditions on which MCC will provide funding of up to US$[insert amount] ( MCC Funding ) to the Government for a Millennium Challenge Account programme (the Programme ) to reduce poverty through economic growth in [insert name of country]. Unless otherwise stated, all capitalised terms used but not defined herein will have the meanings given such terms in the Compact. WHEREAS, under the Compact, Grantor has been designated by the Government to oversee, manage and implement the Programme, which includes [describe Compact project that is relevant to the Grant being made]. WHEREAS, Grantee [describe Grantee s work and how it relates to Compact project, including whether Grantee will be an implementer of the part of the project or the work of its mission that complements the project objective]. WHEREAS, Grantor desires to make a Grant to Grantee for the purpose of carrying out the Activities described herein. NOW, THEREFORE, in consideration of the foregoing and subject to the terms herein, Grantor will provide a Grant to Grantee on the terms and conditions set forth in this Agreement. ARTICLE I AGREEMENT EFFECTIVENESS AND TERM Section 1.1 Grant. (a) (b) (c) Subject to the terms of this Agreement, Grantor will make available to Grantee an amount not to exceed [insert Grant amount] [United States dollars] (the Grant ) to carry out the Activities described in Annex II (the Grant Project ). In consideration of the funds received, Grantee will perform the Grant Project on the terms provided in this Agreement. The goal of the Grant Project is [describe objective of the Grant]. Total Grantor funding for the Grant Project is limited to the Grant. Each disbursement of the Grant will be subject to the availability of funds to Grantor for that purpose at the time of the disbursement. Unless Grantor agrees otherwise in writing, the Grant may be used only for expenditures for the Grant Project (d) If Grantee chooses to continue the Grant Project after Grant funding has been exhausted, Grantee understands that Grantor makes no commitment of funding beyond the amounts available under the terms of this Agreement. Unless Grantor agrees otherwise in writing, Grantor will not MCA-N LMEF Grant Manual Page 26