Project details

Overview

Project title

Call for Proposals (CFP) for Private Sector Co- Investment Grant Facility to support Economic Activities under Rural Electrification in Sierra Leone (RESL)

Call for proposals / Grant notice
13 Feb 2020

Published

13 February 2020

Deadline

10 March 2020

Budget

 


Procurement type

Services, Supplies, Works

Reference

UNOPSZ260100

Funding Agency

UNOPS - United Nations Office for Project Services


Countries

Sierra Leone

UNOPS

Call for Proposals (CFP) for Private Sector Co- Investment Grant Facility to support Economic Activities under Rural Electrification in Sierra Leone (RESL)

Grant support-call for proposal

Reference: 2020/CFP/B5317/20439/GRT/001

Beneficiary country(ies): Sierra Leone

Deadline on: 10-Mar-2020 12:00 (GMT 0.00) Western Europe Time, London, Lisbon, Casablanca

The objectives of these various work packages are summarized as follows:
- Work package 1 and 1+ (WP1/1+): Installing stand-alone 6kWp solar photovoltaic (sPV) systems in a minimum of 50 communities. The stand-alone 6kWp solar photovoltaic systems, which provide electricity to the Community Health Centres, have been subsequently expanded into small mini-grids in the 50 villages and connected all other public institutions and households in the village. The 50 small mini-grids (< ~36kW) are now operated by private operators with commercial interests in order to ensure long term sustainability.
- Work package 2 (WP2): The project is supporting a range of public-private sector business models for providing rural communities electrification through the installation of environmentally and economically sustainable mini-grids (> ~36kW). A minimum of 40 mini-grids will be completed by October 2020, adding up to 5 MW to the country’s power generation capacity.
- Work package 3 (WP3): Technical Assistance (TA) and institutional development (capacity building) to both government authorities and the private sector, as part of the holistic approach, to facilitate mini-grids development and long term sustainable operations.
- Work Package 4 (WP4): The Freetown Landslide Emergency Earthworks Response and Camp Preparatory Works. The initial project budget for the RESL was amended in 2017 to include the Emergency Earthworks and Temporary works in response to the Freetown Landslide and Flooding. This work package was completed in March 2018. This work package is included in this project just to further clarify budget allocation.
- Work Package (WP5): Monitoring and Evaluation and communications. A Monitoring & Evaluation plan has been developed and is being executed to ensure that the project meets the expected outcomes and deliverables. The project has a Communications Strategy.
Work Package (WP6): Productive Use. Through this work package, RESL seeks to contribute to local economic and social growth through increased productive use of energy in mini-grid catchment areas. This will be achieved by implementing a private sector engagement and strengthening strategy, underpinned by a keen understanding of local market systems, to promote productive use economies in mini-grid catchment areas; supporting both the commercial viability of the privately operated mini-grids and promoting local income improvements and local job creation.

The outcomes to be achieved under WP6 are:
1. Mini-grid communities register improved economic growth through the promotion of productive use activities
2. Improve the commercial sustainability of the mini grids through private sector development and the promotion of income-generating activities of the mini grid communities.
3. Improved social development for targeted communities
To achieve these outcomes, UNOPS will catalyse behavioural changes across market players including households, local community-based enterprises, MSMEs, larger businesses, public entities, relevant support services and other development stakeholders. UNOPS will primarily target strategic actors within value chains and social services to unlock value and in the process contribute to building an ecosystem around these that will ensure access to finance, energy efficient technologies and business development services.
UNOPS will catalyse economic activities in the mini-grid catchment areas by promoting the Inclusive Business (IB) models. The IB models promote the incorporation of the low-income population into the value chains of commercial companies, generating a win/win relationship, creating growth, productivity and new opportunities for the participating companies and at the same time generating income and wealth for the low-income communities. Companies identify and support low income/ rural populations with potential and bring them into their economic processes for the benefit of both parties. Such companies use market-based solutions/innovations to catalyze business growth and development, create opportunities to enter new markets and expose communities to the realities of business, enabling access to input, output and service markets, business track record and new technologies. IB models typically incorporate low-income communities by helping them fill one or more of the roles;
1.Producers: new sources of supply of raw materials and finished goods
2.Employees:recruited as businesses expand into new markets
3.Distributors: new and cost-effective distribution channels relevant for the new markets
4. Consumers: new markets for affordable, relevant new goods and services

In addition, UNOPS will support local SMEs and community groups in the mini grid catchment areas through investments in energy efficient technology, equipment, machinery and appliances.

It is hoped that at the end of the project, there would be improved participation of households, local and external businesses in economic activities driven by a reliable supply of energy by mini grid operators and improved access to input, output and service markets.
The overall objective of this Call For Proposals is to contribute to local economic development in the mini grid catchment areas by supporting Inclusive businesses and MSMEs through a Co- Investment Facility

Co- Investment Grant Facility
Through a co-investment grant facility, UNOPS is seeking to partner with suitable usinesses/organisations with a potential to catalyse economic activities in the mini-grid catchment areas. The most transformative interventions will be selected; particularly the ones that can address systemic issues and unblock market constraints to demonstrate best case approaches that can be subsequently scaled up. Below are some examples of interventions that can be funded under the Co- Investment Grant?:
- Setting up processing and cold storage facilities in mini-grid catchment areas
- Development and implementation of inclusive business models involving local communities
- Last mile distribution of energy efficient appliances
- Capacity building of communities and SMEs
- Activities that are aimed at technology improvements for local communities and SMEs
- Business diversification involving energy off take from the mini-grids
- Financial inclusion of local communities
- Off farm SME development activities
Below are the categories of the co- investment grants that targeted businesses/organisations can apply for:

Category Inclusive Business Co- Investment Grants

Eligibility Criteria:
- Registered Business/Organisation
- Business/Organisation must have been operating for at least 3 years.
- Business/organisation must submit copies of the following:
?(1)?Financial statements for the last 3 years (2)Lease agreements/ Title deeds for business premises
(3)Three references from reputable organisations within the last 3 years
- Track record in working with low income communities(Documentary evidence )
- Proof of co- funding of at least 50% of total grantee budget demonstrated through (bank statements, loan/grant agreementsand other relevant legal documents)
- Businesses should be located at the RESL project sites(Refer to nannexE) or alternatively business must have business interests/relationships with other businesses/community groups which are based at the RESL project sites

Evaluation Criteria:
- Relevance of the proposal in relation to the objectives of the Call for Proposals
- Sustainability of proposed business models
- Business/organisation must be participating in specific value chains in the mini grid catchment areas or must be based in the mini grid catchment areas
- ?Business models should incorporate local communities as partners in their core business( employees, suppliers, distributors, consumers)
- Evidence that one or more partners in the business model will use energy from the project solar mini grids·
- Business linkages with other value chain actors, particularly local market actors
- Impact on the community including but not limited to: 1.Provision of embedded services to local actors 2.Number of community members/SMEs that will be included as business partners 3.Income to be generated by community members 4.Direct job creation
- Clarity/feasibility of business plan/implementation plan
- Value for Money-Budget must be in line with proposed activities

Procurement
- Grantees will be allowed to use their procurement procedures within minimum acceptable standards. These include:

58 Sir Samuel Lewis Road Mob: +232 (0) 30 914 073
Aberdeen, Freetown nickg@unops.org
Sierra Leone www.unops.org
- submission of 3 quotations and justifications for selecting a particular supplier.
- UNOPS will assume oversight to ensure value for money and application of the minimum standards. For items with higher values (above $50 000) UNOPS will be an observer in the procurement p?rocess and will give appropriate guidance in addition to conducting due diligence of proposed suppliers and checking the market to verify prices

Category 2: Co- Investment Grants for Rural Based Enterprises

Category 3: Co- Investment Grants for Community Based Group Enterprises

Category 4: Grants for Youth Groups

Category 5: Grants For Business Development Service Providers to deliver Technical Assistance to Micro, Small and Medium Enterprises (MSMEs)

Grant Disbursements
Payments will be made directly to suppliers of goods and services after certification that the Grantees have paid (to the suppliers of goods and services) their part of the co- financing. Payment schedules will be agreed with each Grantee

Deliverables

1. Baseline information
2. Documented procurement processes/Files and Asset Registers
3. Training registers and training reports for T/A assistance facility
4. Final implementation reports and related documents. It is envisaged that the duration of activities will range between 6-12 months and all activities have to be completed 3 months before the end of the RREP project in October 2021. UNOPS will agree on targets and monitoring visit schedule with the Grantees. 5. Documented successful models for productive use of energy and local economic development in the mini grid catchment areas
To ensure that deliverables are met, UNOPS will work closely with and support all Grantees. Support to Grantees may include but not limited to the following:
1. Reviewing together with the grantees the proposed inclusive business models, including advising the grantees on how to improve and implement the proposed business models
2. Assist with the drafting of implementation plans and agree with the grantees on deliverables and targets
3. Assist the grantees in rolling out the implementation plan, including facilitating linkages/relationship building for relevant partnerships including community partners and mini grid operators
4. Relationship building between grantees and community based partners
5. Periodic visits to the grantees to monitor activities and check with the communities on how the inclusive business model is working 6. Receive and approve quarterly reports from the grantee and capture learning /success stories
7. UNOPS will assess the grantees financial systems during the due diligence exercise and may provide training. A one to one questionnaire will be administered to learn more about each Grantee's systems.
8. MSMEs that require training will be referred to the winners of the T/A facility for training.

Hyperlinks to Related Project Dossiers:

https://www.ungm.org/Public/Notice/103935