RESULTS-BASED FINANCING PROGRAM TO SCALE UP SOLAR WATER PUMPING SOLUTIONS FOR SMALLHOLDER FARMERS IN SENEGAL - CALL FOR APPLICANTS
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USAID Scaling Up Renewable Energy │ SURE Senegal RESULTS-BASED FINANCING PROGRAM TO SCALE UP SOLAR WATER PUMPING SOLUTIONS FOR SMALLHOLDER FARMERS IN SENEGAL CALL FOR APPLICANTS December 2022
Date issued December 2, 2022 Clarification questions due December 16, 2022 5:00PM GMT-5 Q&A and orientation webinar January 5, 2023 Application due date and time January 27, 2023 5:00PM GMT-5 Subject: Scaling Up Renewable Energy (SURE) Senegal Results-Based Financing Program to Scale Up Solar Water Pumping Solutions for Smallholder Farmers in Senegal Dear Prospective Applicant, The United States Agency for International Development (USAID) invites eligible organizations to respond to the Scaling Up Renewable Energy (SURE) Senegal Results-Based Financing Program to Scale Up Solar Water Pumping Solutions for Smallholder Farmers in Senegal Through SURE, USAID intends to issue grants and provide technical assistance (TA) to organizations seeking to expand their distribution of solar pumps with a capacity to irrigate areas of up to 3 hectares (Ha) in targeted regions of Senegal considered to be “off-grid” under current Government of Senegal plans (see attached list of areas in Annex 1). Acknowledging that women represent most of the agricultural workforce in rural areas and play an important role in economic development, the supported expansion plans will seek to reach women and youth as customers. The estimated ceiling for this solicitation is $300,000. Subject to the availability of funds, it is anticipated that up to three individual awards will be made in the range of $100,000 to $150,000 each. Awards will be for projects in off-grid areas of the Casamance, Tambacounda/Kedougou, and Northern Niayes regions. Each region will receive different levels of grant support. Eligible organizations include for-profit businesses with a track record in Senegal that have developed business plans to enter or expand in SURE’s target regions and are willing to integrate a gender equality and social inclusion lens into their project. Non- governmental organizations (NGOs) cannot lead projects but are welcome to participate as consortium members. We encourage applicants to explore building consortia with NGOs and/or other relevant organizations that add value for all customers (women, men, youth, and marginalized populations) in adoption of the targeted technology or the overall agricultural commercial model. SURE Senegal intends to support models that ensure a choice of certified quality products, i.e., a range of pumps, including those most likely to be used by women and small farmers, rather than a “single pumps fits all” type of business model. Part of the award will be utilized for projects that make “best efforts” to integrate solar pumps for smaller-sized plots (of a half Ha or less) and women farmers, including blocs maraîchers (market gardens) run by women. SURE Senegal believes that such products do carry a slightly larger “grant additionality,” provided they meet customer needs in the targeted regions. SURE Senegal is implemented by Tetra Tech ES, Inc., on behalf of USAID. The awards and disbursement of funds will be executed by Tetra Tech ES, Inc. DUE DATE: Applications shall be received no later than January 27, 2023 5:00PM GMT-5 via email to sureprocurement@tetratech.com QUESTIONS: Prospective applicants who have questions concerning the contents of this solicitation must submit them in writing no later than December 16, 2022 5:00PM GMT-5 via email to sureprocurement@tetratech.com
Issuance of this solicitation does not constitute an award commitment on the part of SURE or USAID to pay for costs incurred in the preparation and submission of proposals. Further, SURE reserves the right to reject any or all proposals received. SURE looks forward to reviewing your application and supporting your organization’s efforts to advance access to productive use appliances in target regions of Senegal. Sincerely, Arai Monteforte Chief of Party Scaling Up Renewable Energy Tetra Tech USAID Contractor
CONTENTS CONTEXT AND JUSTIFICATION ............................................................................................................. 1 GRANT DESCRIPTION ............................................................................................................................... 1 SURE’S RBF MODEL..................................................................................................................................... 2 RATIONALE AND OBJECTIVES OF SURE’S RBF .................................................................................. 2 MILESTONES-BASED PAYMENT ............................................................................................................ 2 CONSIDERATIONS IN BUILDING PARTNERSHIPS ............................................................................. 3 ELIGIBILITY CRITERIA ................................................................................................................................. 4 WHAT’S SUPPORTED ............................................................................................................................. 4 WHAT’S NOT SUPPORTED ................................................................................................................... 5 OTHER ELIGIBILITY CRITERIA............................................................................................................... 5 EVALUATION CRITERIA ............................................................................................................................ 6 APPLICATION DETAILS.............................................................................................................................. 8 APPLICATION STAGE............................................................................................................................. 8 INTERVIEW STAGE ................................................................................................................................. 8 PRE-AWARD STAGE ............................................................................................................................... 8 SUBMISSION DETAILS ................................................................................................................................ 8 TIMETABLE ............................................................................................................................................... 8 QUESTIONS AND ANSWERS ................................................................................................................ 9 APPLICATION SUBMISSION .................................................................................................................. 9 AWARD INFORMATION ......................................................................................................................... 10 AWARD BUDGET, PERIOD OF PERFORMANCE, AND COST SHARE REQUIREMENT................ 10 FUNDING MILESTONES ....................................................................................................................... 10 TECHNICAL ASSISTANCE PROGRAM................................................................................................ 11 ADMINISTRATION ................................................................................................................................... 12 REPORTING REQUIREMENTS ............................................................................................................. 12 BRANDING AND MARKING ............................................................................................................... 12 COST SHARE ......................................................................................................................................... 13 ALLOWABLE AND UNALLOWABLE COST SHARE ......................................................................... 13 REPORTING COST SHARE................................................................................................................... 14 ANNEX 1: LIST OF PRIORITY DEPARTMENTS UNDER THE SENEGAL UNIVERSAL ELECTRICITY ACCESS PLAN............................................................................................................................................ 15 ANNEX 2: APPLICATION QUESTIONNAIRE ......................................................................................... 16 i
ACRONYMS ANER National Renewable Energy Agency ANIDA National Agency for Agricultural Integration and Development ASER Senegalese Rural Electrification Agency ASN Standards Association of Senegal EPLS Excluded Parties List System ESG Environmental and social governance GDP Gross domestic product Ha Hectare ISRA Senegalese Institute for Agricultural Research PPP Public-private partnership PUDC Emergency Program for Community Development PVoC Pre-shipment Verification of Conformity RBF Results-based finance SAM System for Award Management USAID United States Agency for International Development VAT Value-added tax ii
CONTEXT AND JUSTIFICATION The Senegalese population is estimated at 17 million people, of which 51 percent are women, 42 percent are children under the age of 15, 60 percent are under the age of 30, and more than 50 percent live in rural areas. The agricultural sector accounts for nearly 17 percent of the gross domestic product (GDP) and employs 52 percent of the active population. Women represent 70 percent of the agricultural workforce in rural areas. Agricultural productivity is stymied by lack of electricity and irrigation. More than three million people in rural areas still do not have access to modern electricity, and agriculture is largely rain-fed. This situation is detrimental to those who lack economic opportunities, especially young people and women who face structural exclusionary barriers such as limited access to land and financing. Over 150,000 people work in the subsector of horticulture (production of fruits and vegetables) in off- grid areas, and 70 percent of them are considered smallholder farmers—defined here as laborers on farms that are between 1 and 3 Ha in size. Youth and women are underrepresented in this industry, making up only about 32 percent and 20 percent of horticulture farmers, respectively. While many of these farmers rely on diesel-driven irrigation pumps or rainfall, donor and government programs have demonstrated that adoption of solar-driven irrigation can increase the productivity, profitability, and competitiveness of such farmers. However, private providers of solar pumping solutions are discouraged from serving these markets due to challenges faced by potential customers, including a lack of resources to shoulder high upfront costs and inadequate farming and irrigation skills among youth and women. SURE Senegal intends to issue results-based financing (RBF) grants to private companies providing solar pumping solutions to smallholder farmers, especially women and youth, in selected off-grid regions. Successful candidates will demonstrate effective, efficient, and tested business models for the deployment of energy and pumping services for off-grid smallholder farmers. We seek innovative business models that leverage customer credit as a way to deal with upfront costs; demonstrate capacity for aftersales management; and rely on partnerships with farmer’s associations or cooperatives, farming input companies and programs, NGOs, specialized financial institutions, and other organizations to maximize overall support to customers. This approach ensures that the roles and responsibilities of each actor can contribute meaningfully to reducing the overall project risks and costs. An RBF model will allow private companies to propose approaches to risk sharing and financing that can scale successful solar-pump delivery models for the most vulnerable consumers. GRANT DESCRIPTION Grant funding up to $150,000 and targeted technical assistance will be mobilized in support of private sector plans to enter, or expand their presence in, the regions and departments targeted by SURE Senegal (listed in Annex 1). The grant is intended to encourage companies to enter regions where the capacity to pay is not fully certain but where companies believe that solar pumps can boost farmer income and generate capacity for repayment. Three agro-ecological zones have been selected as target markets: • Eastern Senegal, including Tambacounda, Kedougou; • Casamance region, including Sedhiou, Kolda, and Ziguinchor; and • Niayes zone (Louga and St-Louis regions only. Please note that the Thies and Dakar regions are not considered.). 1
Grants for the Niayes zone must target women or organizations led or owned by women as customers. Grant projects should target off-grid customers (at least 1 kilometer (km) away from the grid). A complete list of eligible departments is provided in Annex 1. SURE will co-design a TA program with selected grantees. Examples of eligible TA needs include, but are not limited to, the following: • Credit management; • Accounting; • Gender equality, youth and social inclusion integration; and • After-sales management. Companies are encouraged to specify TA support needs during the application phase. SURE’S RBF MODEL RATIONALE AND OBJECTIVES OF SURE’S RBF The RBF grant window aims to support increased use of solar pumping solutions to enhance the livelihoods of individual smallholder farmers, especially women and youth. SURE Senegal is not an innovation grant window for companies seeking to pilot first projects in solar pumping. It is a grant for companies with existing track records in solar pumping and customer financing to scale into new areas or address customer groups that have not been served before. Underserved markets in Senegal represent important opportunities for growth in the off-grid and agricultural sectors but also entail significant operational and market risk. The RBF will de-risk those opportunities by defraying the costs of establishing or growing a presence in those markets. RBF payments will serve as a means of shortening cash cycles for asset financing and boosting customer repayment. MILESTONES-BASED PAYMENT Grant funds awarded under this mechanism will be disbursed under a Fixed Award Agreement (FAA) that links payments to the achievement of milestones. Under SURE’s results-based finance (RBF) model, payment of milestones will take two forms: • Traditional milestones – Written deliverables that represent significant progress toward project completion or an upfront payment provided upon grant award. Deliverables may include studies and plans such as gender-sensitive market assessments, environmental management plans, or final reports. Project reports are the traditional means of disbursing FAA grant funding. • Sales target milestones – Documentation demonstrating sales that meet SURE’s criteria for installation location and customer type. SURE and the grantee will agree on a per-unit payment which will be applied to verified, qualifying sales. Criteria and caps for determining these payments are described below. These sales target milestones are the RBF disbursement mechanism. Applicants will propose traditional milestones and sales targets, as well as their linked disbursements, as part of their application. Additional criteria for each of these milestone types include: 2
Traditional milestones • Maximum 25 percent of total grant award. • Minimum cost-share of 1:1 for all traditional milestones. • Upfront payments may be used to finance personnel, assets, studies, customer training, or ecosystem services related to market entry into new regions or customer markets. • Deliverable payments may be linked to completed studies, trainings, or documented activities related to market entry. Data included in all deliverables such as study reports, training results, and other activities should be disaggregated by sex and age. Sales target milestones • Minimum 75 percent of total grant award. • Criteria on geographic focus and customer type, and maximum unit subsidy are described in the following table. GEOGRAPHY DEMOGRAPHIC FARM SIZE MAXIMUM SUBSIDY TARGET PER UNIT Louga, Linguere, Kebemer Individual women Individual plots
and social inclusion approaches and mitigate project risks. Some examples that ecosystem 2 partners can tackle include: 3 • Training and building the capacity of smallholder farmers to choose adequate inputs for their products and use best practices in management of natural resources, including aquifers; • Building their capacity to connect to different markets that provide more opportunities to sell their products; • Providing access to tools that help them make decisions based on market needs and dynamics; • Developing strategies and mechanisms that ensure optimization of production volumes with market capacity; and • Providing a good map of small farmers and areas to host storage facilities that offer favorable conditions for market connections. ELIGIBILITY CRITERIA WHAT’S SUPPORTED • Companies that offer a range of solar water pumping products to meet the needs of smallholder farmers with farms up to 3 Ha. • Projects that target off-grid customers, defined as at least 1 km from the low-voltage grid. • Solar pumping solutions designed and installed to supply water for irrigation and/or livestock. • Companies that can provide evidence of product verification through the conformity assessment process 4 put in place and implemented by the Senegalese Standards Association (ASN) or any Pre-shipment Verification of Conformity (PVoC) method to certify the quality of the products. SURE will prefer solar pumps certified by VERASOL Solar Water Pumps Archive | VeraSol Product Database but will consider equivalent international quality compliance standards. • Companies are required to develop projects in one of the three regions above and deploy a minimum of 50 percent of assets within the departments listed in Annex 1 corresponding to the targeted region. • Companies are expected to make targeted and intentional efforts to boost the participation of women and youth as customers. • Companies must have successfully deployed at least 200 solar pumps in either Senegal and/or any combination of countries in sub-Saharan Africa. 2 These ecosystems include government agencies working in the renewable energy sector (National Renewable Energy Agency) or on research of adapted agricultural inputs such as seeds and pesticides (Senegalese Institute for Agricultural Research and National Agency for Agricultural Integration and Development); agencies mandated to build infrastructure (Emergency Community Development Program); and service providers in pesticides and insurance. 3 These capacity-building, strategies, and mechanisms are expected to be gender-sensitive, meaning that activities related to capacity-building, optimization strategies and mechanisms, and smallholder mapping will take into account the differentiated needs, priorities, and dynamics of women and youth. 4 The government enacted the value-added tax (VAT) exemption on solar products, including solar pump systems, to promote quality and affordability of solar products for low-income populations in May 2020. 4
WHAT’S NOT SUPPORTED • Solar pumping solutions that would require grid or mini-grid power or hybridization of existing diesel pumps. • Borehole drilling or construction (companies are allowed to target existing boreholes). • Business plans that do not deploy at least 50 percent of assets in at least one of the departments listed in Annex 1. • Projects that target customers within 1 km of a power grid. • Appliances related to solar home lighting, solar TV, solar refrigeration, and phone charging systems may be included as part of the business plan but will not be supported by the grant. • Companies that do not demonstrate a track record and/or fail to prove effective capacity in after- sales service of solar pumps. • One-off capital projects that do not entail solar pumping solutions, and solar pump distribution projects that do not seek to establish a lasting presence in one of the target markets. • No construction activities are permitted under grants awarded under SURE in accordance with IDIQ clause C.6.5. OTHER ELIGIBILITY CRITERIA Following are the minimum criteria for award eligibility. Applicants that do not meet the criteria will not be considered for application review. • SURE intends to support financially sustainable for-profit businesses. • Only businesses legally registered in Senegal are eligible. • Successful proposals will co-mobilize at least 50 percent of the funds (a cost share of 1:1). Cost share may include in-kind services and assets (from the grantee company), in-kind inventory (i.e., the unsubsidized portion of the per-unit pump costs), own funds, outside equity, debt, supplier credit, or other grants. o In-kind inventory will be considered as the unsubsidized portion of the pump installation costs and will be automatically considered part of the grantee’s total cost-share amount. o In kind assets and services (labor, company assets) are capped at 25 percent of the grantee total cost share amount. • Supported companies will have a track record of sales and after-sale service of solar pumping solutions. • SURE requires grantees to demonstrate established processes for financial accountability and record keeping of all expenses, as well as possession and application of a system of internal controls to safeguard assets and protect against fraud, waste, and conflicts of interest. • Language. Applications must be written in English or French. The following organizations are NOT eligible for SURE grant funding: • Any entity whose name appears on the U.S. Treasury Department’s “Specially Designated Nationals List,” the Excluded Parties List System (EPLS) or System for Award Management (SAM), or the United Nations Security Resolution #1267 list. • Any public international organization, such as an organ of the United Nations, multilateral development bank, etc. • Political parties and their subsidiaries or affiliates. 5
• Any organization that fails to receive vetting eligibility from USAID. • Faith-based organizations that are not in compliance with ADS 303.3.6.4.m, which is in accordance with Executive Order 13279, Equal Protection for the Laws of Faith-based Community Organizations. • Applicants that do not operate as a legally registered entity (for-profit business or group within a non-profit or academic institution) in at least one of the countries mentioned above. • Activities and/or approaches that reinforce harmful gender norms. • Any entity affiliated with Tetra Tech, its officers, directors, or employees. • Government entities and individuals. EVALUATION CRITERIA Scoring will consider the following guidance: • Basic information (non-weighted) • Current operations (10 percent of full application score) o Company description. Plans will provide a high-level summary of the current status of the business. This summary should include a description of current markets where the company is working, top-line sales and revenue figures, and a description of the overall business model and its approach to women and youth. • Customer offer (10 percent of full application score) o Products and services. Technical specifications for each model in the company’s product range as well as a description of services related to solar pumps (notably installation and after-sales servicing) to be offered in the target market. Products and services specifically focused on women and youth shall be explicitly described. The proposed range of products will serve the needs of various types of crops for the customers. o After-sales service. Applicants ensure the long-term maintenance of solar pumps, including choices of extended warranty, as well as demonstration of their capacity to service their products effectively and rapidly. o Consumer finance approach. If consumer finance is offered as a part of the business model, this should be highlighted. Customer financing models should demonstrate an understanding of customer repayment potential, disaggregated by sex, and propose financing plans accordingly. Proposed repayment periods should be a maximum of three years. • Target market (15 percent of full application score) o Targeted customers. Applicants will estimate the size of the target market for the solar pumps in terms of the number of potential customers and potential revenue targeted under the grant. If the applicant intends to include other products and services along with the solar pumps, separate market estimates shall be provided. o Share of women and youth customers. Applicants will describe their approach to reaching women and youth customers within the target market. A preference will be given to plans that directly target women and youth. • Market ecosystem (10 percent of full application score) o Value chain participants and partnerships. Applicants will identify key relationships, including suppliers of agricultural inputs (seeds and pesticides), service providers (insurance, telecoms, consumer finance providers), and/or stakeholders in the agricultural 6
and circular economy or waste sectors. Where plans envisage the formation or extension of partnerships, those relationships will be fully described, and relevant details of the partner organization, such as percentage of men and women employed, shall be provided. o Competitive analysis. Applicants will analyze the competitive landscape in the target market, including ongoing or proposed government or donor projects that may impact local agricultural or energy sectors or competing consumer finance providers. o Planning for appliance end-of-use. Applicants should detail how the solar pump systems can be part of the circular economy and identify local vendors/businesses that can repair, recycle, or safely dispose of the solar irrigation system components without harming the environment or human health. In a circular economy, products, parts, and materials are systematically recovered, repaired, reused, and remade. This minimizes the use of resources and the creation of waste. • Long-term viability (20 percent of full application score) o Business model fit. Applicants will describe how the project fits into their overall growth strategy and operational model and why their target markets are attractive to their business. o Financial performance projections. Applicants will provide projections of project financial performance. o Access to water and other risks. Applicants will demonstrate an understanding and analysis the risks relevant to area where they intend to sell the pumps, including risks related to the long-term availability of water. • Budget and financing (10 percent) o Budget and funding sources. An indicative budget should be developed for plan execution. A top-level cost of execution should be provided as well as an appropriately detailed breakdown of costs by specific activities or assets. Specific activities to catalyze participation of women and youth should be budgeted too. The plan should also identify the funding sources for plan execution. Strong preference will be given to candidates that propose a co-financing implementation. The plan will state SURE’s requested contribution and provide details on additional funding sources, which may include equity investors, other grant funds, debt, or internal resources. o Overall cost share. Applicants will propose an overall cost share for the project. Higher cost shares will be scored more favorably. • Per-unit subsidy (15 percent) o Per-unit subsidy. Applicants will propose a per-unit subsidy for each pump system sold under the grant. Proposed subsidy levels must conform to the limits described in Table 1. Lower proposed subsidies will be scored more favorably. • Action plan (10 percent) o Staffing and assets. Plans will detail the staffing and asset needs of the entry or expansion effort. Staffing needs may include gender balance among sales agents, managers, and technicians. Assets may include customer relationship management systems, language- adapted materials and systems, or shops, warehouses, and other infrastructure. o Activities and timetable. Plans should detail specific activities and strategies over the short, medium, and long term. Short-term activities may focus on market entry and expansion, while medium- and long-term activities may involve the development of new partnerships or new business offerings. A timetable for the execution of each initiative should be presented over a time horizon appropriate to the plan. 7
APPLICATION DETAILS APPLICATION STAGE Applicants are requested to respond to the following questions and provide supporting documents to enable a sound evaluation of their application. Please note that each of the key sections is weighted. The full application questionnaire is provided in Annex 2. INTERVIEW STAGE Finalists will be invited to interview with SURE personnel, USAID representatives, and other stakeholders to present their business plan proposal. Interview presentations will provide an overview of the plan and highlight key components, risks, and support needs. Applicants will have an opportunity to address weaknesses identified by reviewers and answer follow-on questions. Applicants also will be able to ask questions of SURE staff regarding the program of assistance. Interviews will be conducted in English or French. PRE-AWARD STAGE The pre-award process serves to assess organizational capacity to determine whether the applicant is capable and qualified to manage the grant. Since grants under this window will be Fixed Amount Awards, SURE will use the Fixed Amount Award Entity Eligibility Checklist per ADS 303. If an applicant submits an excellent application but has a history of poor performance, is not financially stable, has an insufficient management system, has not conformed to the terms and conditions of a previous award, or is not otherwise responsible, SURE may impose additional requirements as needed, provided that the applicant is notified in writing as to: • The nature of the additional requirements; • The reason(s) the additional requirements are being imposed; • The nature of the corrective action needed; • The time allowed for completing the corrective actions; and • The method for requesting reconsideration of the additional requirements imposed. Depending on the result of the survey, SURE has the option to deny the recommendation of the evaluation committee and reject the grantee or grant with "Specific Conditions" as detailed at 22 CFR 200.207 (See Mandatory Reference, 22 CFR 200.207) (See also ADS 303.3.9.2). SUBMISSION DETAILS TIMETABLE SURE invites eligible companies to submit an application by January 27, 2023. SURE will evaluate applications, and finalists will be invited to interview by April 7, 2023. SURE will then hold video teleconference interviews to select three awardees. We expect to provide awardees with a mix of financial 8
(grants) and non-financial (technical assistance and investment facilitation) support. The following table illustrates the initial review and selection process. Dates are approximate. DATE STEP December 2, 2022 Application window opens December 16, 2022 Questions due from applicants January 5, 2023 Kick-off webinar to answer applicants’ questions January 27, 2023 Applications due April 7, 2023 Application evaluation completed and finalists notified April 28, 2023 Interviews completed and awardees selected July 12, 2023 Pre-award and negotiation completed QUESTIONS AND ANSWERS Questions regarding this solicitation must be submitted in writing no later than December 16, 2022, at 5 pm GMT-5 to sureprocurement@tetratech.com. SURE Senegal will address the questions and incorporate the questions and answers as an amendment to this solicitation (if necessary). Verbal explanations or instructions given before the issuance of an award will not be binding. Any information given to a prospective applicant concerning this solicitation will be furnished promptly to all other prospective applicants as an amendment to this solicitation if that information is necessary in submitting applications or if a lack of the information would be prejudicial to any other prospective applicant. All questions received by the deadline will be answered without attribution and disseminated among all applicants. APPLICATION SUBMISSION Applications must be submitted via email to sureprocurement@tetratech.com by January 27, 2023 at 5 pm GMT-5. All proposals received by the submission deadline will be reviewed for responsiveness to the eligibility criteria. Applicants must ensure that their applications are received by SURE in their entirety. No additions or modifications to the applications will be accepted after the submission deadline. SURE Senegal bears no responsibility for data errors resulting from transmission or conversion processes associated with electronic submissions. Applicants should retain a copy of their proposals and accompanying uploaded documents for their records. Please note that the application responses may be used for public communication after awards are made. SURE Senegal reserves the right to make minor edits to the responses in order to enhance their readability 9
for public communication. SURE will screen any public-facing communication materials with entrepreneurs before release to ensure there are no breaches of confidentiality and that commercially sensitive information is not being released. AWARD INFORMATION AWARD BUDGET, PERIOD OF PERFORMANCE, AND COST SHARE REQUIREMENT The estimated ceiling for this solicitation is $300,000. Subject to the availability of funds, it is anticipated that up to three individual awards will be made in the range of $100,000 to $150,000 each. The period of performance for support will vary depending on awardees’ proposed projects but is anticipated to be approximately 1 year. All awardees receiving grant funding are required to have matching funds or “cost share.” Cost share may be in the form of cash/cash equivalent or in-kind contributions including labor and inventory. The cost share must contribute to activities undertaken in the implementation of the business plan. This grant requires a minimum cost share ratio of 1:1, i.e., matching funds amounting to 100 percent of the total grant award provided by SURE (not the total project budget). The final amount of cost share will be determined on a case-by-case basis for each applicant during the final award stage. The awards will be issued and administered by Tetra Tech ES, Inc. as the implementer. FUNDING MILESTONES SURE Senegal funding will be disbursed over the period of performance based on the achievement of performance and/or technical assistance milestones. Grantees, together with SURE, will establish mutually agreed upon implementation milestones to assess progress in business plan implementation. SURE Senegal will verify and review milestones, then disburse funding. SURE Senegal reserves the right to withhold funding disbursement until milestones are deemed to be met as per the grant agreement. Implementation and financial milestones may include business plan activities or achievements that signal the realization of key business plan goals or phases, such as: • Secured matching funds from public or private sector; • Total product sales; • Profit margin by product; • Launch of a marketing campaign; • Purchase or development of business processes or assets; • Establishment of key partnerships; and • Customer acquisition target for women and youth. The number of funding milestones will be limited and manageable; we do not intend for SURE to be an overly burdensome program for awardees. Failure to meet milestones will result in withheld funds and potentially an adjustment of funding milestones or the cancelation of the grant. 10
All awardees may receive an initial tranche of funding at the outset of the award. Initial funding will depend, in part, on the business plan’s progress and verified needs. SURE Senegal will make every attempt to distribute funding to awardees as quickly as possible, but awardees should expect to begin activities immediately after the award is signed, even if funding is delayed by one to two months. A minimum of 10 percent of the award amount must be reserved for the final milestone payment. TECHNICAL ASSISTANCE PROGRAM SURE Senegal will provide catalytic TA to improve business performance, promote the successful implementation of the business plan, address investor concerns, ensure regulatory compliance, fully incorporate environmental and social governance (ESG) principles into business operations, or comply with the terms of the grant agreement if grant funding is provided. This may be in place of or in addition to grant funding. SURE Senegal will provide mentorship and technical assistance to the grantees’ upper management. This may relate to any of the following service areas: • Investment readiness and facilitation; • Business development; • Product development/refinement; • Gender integration; • Youth integration; • Base of pyramid impact; • Environmental sustainability; • Enabling environment; • Organizational capacity development; • Public relations and communications; • Market research and analysis; • Marketing and sales; • Legal services and grant agreement compliance; or • Monitoring and evaluation advisory services. SURE Senegal will work closely with each grantee to identify specific barriers to scaling commercially while ensuring their products and/or services have a sustainable impact on target customer segments. This may be done through customized interventions implemented either by SURE personnel directly, by carefully selected third-party service providers or consultants, or a combination of the two. Awardees will work with SURE to create a technical assistance work plan that identifies specific services to be provided by SURE Senegal. These services should directly relate to the company’s ability to scale commercially within the target market, successfully attract outside investors for further expansion, and integrate critical ESG themes into operations and strategy. 11
ADMINISTRATION REPORTING REQUIREMENTS SURE Senegal is responsible for verifying that milestone reports are received on time, reviewing them for completeness, and monitoring progress against set benchmarks. If there are problems in implementation, a report is incomplete, and/or the verifiable program milestones have not been met, SURE will decide the appropriate action to be taken, including but not limited to termination of the grant, a financial audit, and/or legal action. Generally, performance reports will not be required more frequently than quarterly and not less than annually. However, it may be determined necessary to require monthly reporting as a specific award condition if the grantee is determined to be medium-to-high risk as a result of the pre-award survey. Performance reports will generally contain brief information on each of the following: • A comparison of actual accomplishments against the goals and objectives established for the period, the findings of the implementing partner, or both. When appropriate and when the output of programs or projects can be readily quantified, such quantitative data should be related to cost data for the computation of unit costs. • Reasons why established goals were not met, if appropriate. • Other pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs. • When applicable, all data should be disaggregated by sex, and reports should portray differentiated performance for men and women. Because all grants under this window will be Fixed Amount Awards, disbursement will be made upon presentation of a statement certifying that the milestones for which payment is being requested have been completed. This statement must be accompanied by the certification of milestone completion and required documentation, as set forth in the FAA award document. SURE staff will review the required documentation to verify that the milestone for which payment is requested has been completed in accordance with the terms set forth in the FAA. The grantee is not required to provide data on expenditures, because costs were identified, negotiated, and approved during the award stage. BRANDING AND MARKING In accordance with the marking requirements specified in 22 CFR 700.16, all awards will comply with the approved Branding Implementation Plan for the SURE Activity. The relevant sections of the SURE Branding Implementation Plan will be provided to each grantee as part of their award. If exceptions/waivers are required for a grant, they will be submitted to USAID along with the initial package for approval. All costs associated with branding (press conferences, media and promotional materials, photography, site visits, success stories, etc.) and marking (plaques, banners, signs, stickers, etc.) are to be included in the total budget amount of the grant. 12
COST SHARE SURE Senegal encourages grant recipients to provide as much cost matching as they reasonably can. Cost share should equal at least 50 percent of the value of the requested award. Grant cost share must adhere to applicable USAID guidance, such as ADS 303.3.10, Acquisition and Assistance Policy Directive (AAPD) 02-10, and any other applicable Standard Provision. It is USAID’s policy not to apply its source, origin, and nationality requirements or the restricted goods provision established in the Standard Provision entitled “USAID Eligibility Rules for Goods and Services” on cost share amounts. In accordance with Title 2 of CFR 200.207, program income may be used to finance the required non-U.S. government cost-share portion of the grant award. Cost sharing or matching refers to that portion of project or program costs not borne by SURE Senegal. All contributions, including cash and third-party in-kind contributions, are acceptable as part of the recipient’s cost share or match when they meet the criteria established in the Standard Provision governing recipient contributions. For instance, the cost share may be in the form of funds from other (non-U.S. Government) donors; it may be the labor of the grant recipient employees or volunteers; or it may be the use of a recipient’s meeting room to hold a workshop for the grant activity. Backup documentation is used to verify the source and value of the cost share contributions. The types of backup documentation required vary according to the type of cost share. Examples of backup documentation include: • A donation letter from a donor for cash or in-kind contributions and a copy of the bank statement (for cash contributions only); • Time sheets; • Rate calculations; • Valuation of donated goods and use of space; and • Independent appraisals (for donated equipment, building, or land). SURE Senegal encourages grant recipients to explore different cost-sharing possibilities within their organization as well as to pursue other potential donors that could contribute to project costs. SURE staff will be available to work with recipients to help identify possible sources of cost share. It is critical that all forms of cost share are documented throughout the duration of the grant. ALLOWABLE AND UNALLOWABLE COST SHARE All costs, whether reimbursable or contributions to cost share, must have the following three characteristics: 1. Costs must be reasonable, meaning they are generally recognized as ordinary and necessary and would be incurred by a prudent person in the conduct of normal business. 2. Costs must be allocable, meaning they are incurred specifically for the grant activity. 13
3. Costs must be allowable, meaning that they must conform to any limitations in SURE’s award from USAID. Contributions, whether cash or in-kind, are acceptable as part of cost share if they meet ALL of the following criteria: 1. Cost-share contributions must be verifiable from the recipient's records. 2. Cost-share contributions must not be included as contributions for any other U.S. Government- assisted program. 3. Cost-share contributions must be necessary and reasonable for proper and efficient accomplishment of grant activity objectives. 4. Cost-share contributions must be types of charges that would be allowable under the applicable Federal cost principles. 5. Cost-share contributions may not be paid by the U.S. Government under another grant or cooperative agreement. 6. Cost-share contributions must be provided for in the approved budget when required by USAID. 7. Cost-share contributions must conform to other provisions of USAID guidance. REPORTING COST SHARE SURE Senegal must submit reports of cost sharing to USAID within its financial reports. Recipients need to maintain records and backup documentation for all cost-sharing and submit them to SURE Senegal with the financial reports. The backup documentation is used to verify the source and valuation of the cost share. Once submitted, SURE Senegal will review grantee cost-share contributions and may request further information if some is missing or not sufficient. Cost-share portions are subject to the Standard Provision titled “Cost Share” and can be audited. If a recipient does not meet its cost-share requirement, SURE Senegal may apply the difference in actual cost- share amount from the agreed-upon amount to reduce the amount of USAID funding or period of funding, require the recipient to refund the difference to USAID when this award expires or is terminated, or reduce the amount of cost share required under the award. 14
ANNEX 1: LIST OF PRIORITY DEPARTMENTS UNDER THE SENEGAL UNIVERSAL ELECTRICITY ACCESS PLAN TARGET PRIORITY DEPARTMENTS (AT LEAST 50 PERCENT OF DEMOGRAPHIC REGION SALES TARGETS MUST BE IN AT LEAST ONE OF THESE TARGET DEPARTMENTS) SAINT-LOUIS DAGANA WOMEN AND WOMEN’S GROUPS PODOR LOUGA LOUGA LINGUERE KEBEMER TAMBACOUNDA TAMBACOUNDA ALL FARMERS AND FARMER GROUPS KOUPENTOUM GOUDIRY BAKEL ZIGUINCHOR ZIGUINCHOR BIGNONA OUSSOUYE KEDOUGOU KEDOUGOU SALEMATA SARAYA KOLDA MEDINA YORO FOULAH VELINGARA SEDHIOU GOUDOMP SEDHIOU BOUNKILING 15
ANNEX 2: APPLICATION QUESTIONNAIRE COMPANY BASIC INFORMATION (NON-WEIGHTED) 1. Organization name Detailed information on the registration of the company 2. Country of incorporation 3. Registration date 4. Registration number 5. Contact person’s details Name Title E-mail address Telephone number 6. Name of partner organization(s) 7. Number of employees Current operations (10 percent of full application score) 8. Describe your target clients and your process of sizing pumps for different clients. 9. In which areas of Senegal are you currently operating? 10. What are your high-level sales and revenue figures? 11. How are gender and youth aspects approached under the current business model? 12. Do you have any partnering organizations, as applicable? 13. Describe the negative environmental impacts that could be caused by the procurement, installation, operation and decommissioning of the solar pump systems (as they relate to natural resources, biodiversity, climate resilience, waste management etc.). Identify how you intend to mitigate negative impacts and promote positive impacts. 16
14. Provide details of the environmental management system (EMS) that you have in place, if any. Customer offer (10 percent of full application score) 15. What range of products or services do you offer for solar water pumping for irrigation? Do any of your products target women customers in particular? 16. Attachment: Please provide the technical specifications and certifications for the range of solar water pumps to be offered under this project. (E.g., certificates of conformity from the Senegalese Standards Association (ASN,) Pre-shipment Verification of Conformity (PVoC), VERASOL certification) 17. Describe your approach to customer identification and acquisition. 18. Will consumer financing be offered? Please detail the approach, including • Consumer financing approval process (identification, verification, risk appraisal, issuance, loan terms, etc.) • Roles of the consumer finance partner, if any • Mechanisms specifically for women and youth, if any • How long have you been working under this consumer finance model? 19. Attachment: Consumer finance partnership agreement 20. What is your approach to non-paying clients, including the product reposition process? 21. What is your model for client care and education (first adopters, existing clients) and after sales service (including post-warranty service)? Target market (15 percent of full application score) 22. What geographic areas are targeted? 23. What customer segments, including individuals and farmer groups, are targeted? 24. What is the estimated size of the target market, in terms of number of customers (disaggregated by sex), revenue, and profit? 17
25. How do gender and youth impact access to the target market? Consider factors such as women and youth’s access to entrepreneurial support and consumer finance, including factors related to access to warranties and insurance, access to land, ability to access markets for their goods, and exposure to marketing channels. 26. Why is the proposed offering a good fit for the target market? Market ecosystem (10 percent of full application score) 27. What are the key supplier (e.g., manufacturers, telecom providers) and/or buyer (e.g., distributors, consumer finance organization) relationships for the expansion plan? Please provide data on the sex of the supplier/buyer company’s founder or leader, as available. 28. Attachment (optional): Agreements with partners, customers, or suppliers 29. Who are likely competitors in this market? 30. Who provides local governance—local governments, community associations, industry associations—and how will you interact with them? 31. What options exist to recycle or properly dispose of products at their end-of-use? Long-term viability (20 percent of full application score) 32. How does the target market and proposed expansion fit within your current operational model and long-term strategy? 33. What are the financial implications of the plan? Provide a projection of sales, revenue, costs, and profit over at least five years. 34. What risks does the plan face? Provide a table of specific risks (e.g. long-term access to water) and their mitigation/management options? Budget and financing (10 percent of full application score) 35. Present a high-level budget of capital and operational costs that will be supported by the grant and cost share. The budget 18
should clearly indicate which line items will be covered by SURE grant funding. A template is provided. 36. How will the implementation plan be financed? 37. Provide names of anticipated cost-share sources, and specify their type (i.e., equity, debt, grant funding, in-kind resources). Do any of these sources of financing promote gender lens investing? 38. If bringing in-kind contributions, please disaggregate between labor, inventory, and other assets. Describe their valuation. 39. What is the proposed overall cost share? Per-unit subsidy (15 percent of full application score) 40. What is the proposed per-unit subsidy? 41. Present a unit economics analysis. The analysis should indicate company revenues and costs on a per unit basis for products proposed for subsidy support. A template is provided. Action plan (10 percent of full application score) 42. What are the staffing needs of the plan? 43. Will training for new or existing staff be required? 44. Are any new physical (e.g., warehousing, shops) or business assets (e.g., accounting systems, customer service lines) required? 45. What regulatory or permitting actions are required? 46. Do new partnerships need to be established? If any, describe them. 47. What is the timeline for implementation? Provide a detailed timeline for inventory acquisition, staffing, training, business process development, partnership establishment, etc. 48. What are the strategies to develop a gender-balanced team in the medium to long term? 19
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