USAID is seeking local private sector partners to address these climate challenges

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
ANNOUNCEMENT
CALL FOR PARTNERSHIP CONCEPTS
Partnerships for Climate Smart Food System Innovations in Nepal
UNDER EXISTING
GLOBAL DEVELOPMENT ALLIANCE ANNUAL PROGRAM STATEMENT
APS No.: APS-OAA-21-00001

https://www.usaid.gov/sites/default/files/documents/gda_apa_addendum_NEPAL_EG_20220318.pdf
PLEASE NOTE: This is an addendum to an existing announcement. All
interested organizations should carefully review both this addendum AND the full
announcement, which can be found here:
https://www.usaid.gov/gda/global-development-alliance-annual-program.
Important information contained in the full announcement applies to but is not
repeated in this specific addendum.
This program is authorized in accordance with Part 1 of the Foreign Assistance act of
1961, as amended.
Through this Addendum to the Global Development Alliance (GDA) Annual Program
Statement (APS) No. APS-OAA-21-00001 (the GDAAPS), USAID/Nepal is making a
special call for the submission of concepts focused on private sector partnerships for
climate smart food system innovations in Nepal.
Capitalizing on the GDA approach, USAID/Nepal’s Economic Growth Office seeks to
invest in market-based solutions within the food system that help Nepalis better adapt to
and mitigate the effects of climate change.1 The specific objectives of this GDA
Addendum are to establish partnerships that 1) advance climate smart agriculture and 2)
generate reductions in food loss and waste.
USAID may allocate up to $2,000,000 under this Addendum to fund a portfolio of up to
four partnerships, with funding for any individual partnership estimated to be in the range
of $500,000 to $2 million. Unless otherwise stated herein, all terms and conditions of the
GDAAPS FY 2020-2022 apply.
2 As stated in the APS, the partnerships proposed in any
concept submission should mobilize and leverage private sector resources at a level and
value that at least equals and preferably significantly exceeds the level of funding being
requested from USAID. Proposed GDAs that do not meet this requirement will not be
considered under this announcement.
2 USAID GDAAPS 2020-2022: https://www.usaid.gov/gda/global-development-alliance-annual-program
1 The U.S. Global Food Security Strategy (GFSS) defines food systems as the “interrelated components of people,
behaviors, relationships, and material goods that interact in the production, processing, packaging, transporting, trade,
marketing, consumption, and use of food, feed, and fiber.”
Partnerships established under this solicitation will advance USAID/Nepal’s Country
Development Cooperation Strategy (CDCS)3 by furthering Development Objective 2:
Broad-based and inclusive economic growth fostered. They will also contribute to the
U.S. Government’s Global Food Security Strategy (GFSS) Nepal Country Plan, part of
the Feed the Future initiative to sustainably improve global food security by addressing
the root causes of poverty, hunger and malnutrition.4 Partnerships will also further the
goals of USAID’s draft Climate Strategy.
5
I. Background
Nepal is one of the poorest and least developed countries in Asia, and macroeconomic
indicators demonstrate that the economic situation has worsened since the start of the
COVID-19 pandemic. For example, GDP growth contracted considerably, from an
average of eight percent in the post-earthquake period 2017-2019, to negative two
percent in 2020.6 A slow recovery of about two percent GDP growth is expected for
2021.7 Factors such as a growing trade deficit, low levels of private investment, and
increasing inflation also contribute to Nepal’s economic underperformance. Critically, the
economy also lacks diversity, relying primarily on subsistence agriculture, which
employs about 74 percent of the economically active population. Economic challenges in
Nepal are reinforced and exacerbated by social disparities, particularly socio-economic
status, caste, and ethnicity.
Climate change is projected to cost Nepal around two percent of GDP annually by 2050.8
The impacts of climate change on agriculture are particularly detrimental to economic
growth simply because such a large portion of economically active adults earn their
livelihood from agriculture. Since agriculture is a primary source of food and nutrition,
climate risks also undermine food security and health, creating a negative cycle that
further reduces labor productivity and weakens economic growth. As a sector, agriculture
is particularly susceptible to the effects of climate change because of the geospatial
distribution of agricultural areas; only 17 percent of Nepal’s total land area is suitable for
agriculture, and this largely coincides with the floodplains of the lowland Terai where
droughts and floods are more common. Most of Nepali agriculture is rainfed, making it
very affected by the quantity and timing of precipitation. Critical climate-related risks for
agriculture are soil erosion, pests and diseases, reduced yields, and damages to crops and
livestock.
Malnutrition negatively impacts Nepal’s economic productivity by undermining health,
exacerbating multidimensional poverty, and limiting engagement in a productive
livelihood. Although the country has made tremendous progress in improving the
8 ADB. 2014. https://www.adb.org/publications/assessing-costs-climate-change-and-adaptation-south-asia
7 ADB. 2021. https://www.adb.org/countries/nepal/economy
6 World Bank. 2022. https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=NP
5 USAID Climate Strategy (draft):
https://www.usaid.gov/sites/default/files/documents/USAID-Climate-Change-Strategy-2022-2030-Offical-Draft.pdf
4 GFSS Nepal Country Plan:
https://www.usaid.gov/documents/1867/feed-future-global-food-security-strategy-gfss-nepal-country-plan
3 USAID Nepal CDCS 2020-2025: https://www.usaid.gov/nepal/cdcs
nutritional status of its population over the last two decades, the prevalence of all forms
of malnutrition is still high, with marked disparities according to geography,
socio-economic status, and caste/ethnicity9
. Thirty-two percent of children under five
years are stunted, and 12 percent of children are wasted.10 Fifty-two percent of child
deaths in Nepal are associated with malnutrition, and diarrhea remains the leading cause
of morbidity and mortality of children under five years old. 11 12 A lack of food safety in
Nepal contributes to malnutrition mainly because foodborne pathogens are a major
source of diarrheal disease, which undermines the body’s ability to properly absorb
nutrients. Negative experiences with unsafe foods may also discourage consumers from
consuming nutrient dense fresh fruit and vegetables. The absence of a sanitary and
phytosanitary (SPS) system to ensure food safety in Nepal negatively affects not only the
health of domestic consumers but also severely limits Nepal’s opportunities for
international agricultural trade.
Around 30 percent of all Nepali produce is estimated to spoil before it ever reaches
consumers.13 Besides taking a heavy financial toll on Nepali fruit and vegetable farmers
and exacerbating the growing agricultural trade deficit, this spoilage dramatically reduces
the availability of nutritious foods in local, national, and regional markets. Overall, food
loss and waste (FLW) makes up a significant portion of agriculture’s contribution to
greenhouse gas emissions, and are globally estimated to contribute around 4.4 gigatons of
carbon dioxide equivalent per year.
14 These emissions stem mainly from the inefficient
use of agricultural inputs, associated transportation, and the release of methane from
rotting food. Critical investments in infrastructure and market systems that safeguard
agricultural commodities post-harvest are needed to ensure that products reach the market
in a timely and sanitary manner.
II. Solicitation
USAID/Nepal aims to engage more effectively with the private sector to remove
constraints to inclusive, broad-based economic growth, and catalyze trade and investment
to build a more diversified and vibrant economy. To achieve this, USAID/Nepal seeks to
form partnerships with private sector actors to address development challenges through
enterprise-based solutions, improve the investment climate, and accelerate innovation.
Through this Addendum, USAID/Nepal will partner with businesses that operate within
the food system to better align with ongoing efforts to improve agricultural productivity
and efficiency.
14 FAO.2015. https://www.fao.org/documents/card/en/c/7338e109-45e8-42da-92f3-ceb8d92002b0/
13 Gautam and Bhattarai. Postharvest Horticulture. Kathmandu, Nepal. 2012.
12 Li et al. Diarrhea in Under Five Year-old Children in Nepal:A Spatiotemporal Analysis Based on Demographic and
Health Survey Data. Int. J. Environ. Res. Public Health 2020, 17, 2140
11 UNICEF. 2019. https://www.unicef.org/nepal/reports/every-child-nutrition
10 Ministry of Health and Population, Nepal, New ERA, UNICEF, et al. (2018) Nepal National Micronutrient Status
Survey, 2016. Kathmandu, Nepal: Ministry of Health and Population, Nepal
9 Ghimire U, Manandhar J, Gautam A, et al. 2019. Inequalities in health outcomes and access to services by
caste/ethnicity, province, and wealth quintile in Nepal
This GDAAPS addendum seeks to solicit private sector partners whose businesses are
equipped to advance USAID/Nepal’s aims to address climate change by delivering
innovations in the following areas:
1. Climate Smart Agriculture (CSA): CSA is an approach that seeks to transform
agricultural systems through sustainable agricultural intensification, climate
change adaptation, and reduced greenhouse gas emissions. In Nepal, CSA is an
important way to build the resilience of farming communities to climate change.
Potential partners may contribute to advancing CSA technologies and services at
an appropriate scale for smallholder adaptation, and/or by seeking to create
system-wide effects.
2. Improved Food Safety and Reduced Food Loss and Waste (FLW):
In Nepal, poor food safety and food quality negatively impact nutrition, constrain
opportunities for trade, and accelerate food loss and waste. A lack of food safety
and food quality, especially for animal sourced foods and other perishable items,
reduces the desirability, consumption, and utilization of nutrient dense foods.
Food safety risks also make it difficult for Nepal to meet SPS requirements for
agricultural exports, and discourage private sector investment in trade. Improving
food safety and food quality will help to reduce FLW by building capacity to
systematically manage risks, and by improving the marketability of nutritious
agricultural products in domestic and international markets. Improving food
safety and food quality and reducing FLW in Nepal depend on building stronger
market linkages and efficiencies within value chains that shorten the time between
harvest and consumption, along with strategic investments in infrastructure and
processes designed to better preserve agricultural products.
Under this addendum, USAID/Nepal will only issue awards to a local partner, defined for
this addendum according to the laws of Nepal, as an entity which:
● Has its principal place of business or operations in Nepal
● Is majority owned and controlled by individuals who are citizens or lawful
permanent residents of Nepal
● Is managed by a governing body, the majority of whom are citizens or lawful
permanent residents of Nepal
● If it has projects, offices, and/or registration in other countries, key management
decisions are taken by the office located in Nepal
● Entity cannot be a United States-based organization
Private sector partners may be local or international, but partnership with the Nepali
private sector is preferred. Eligible private sector entities15
include:
15 Under the GDAAPS, individuals are not eligible as private sector; the private sector is limited to entities.
● Private for-profit, commercial entities such as a business, corporation, small or
medium enterprise or private firm16
;
● Private equity or private financial institutions, including banks, micro finance
institution, private investment firms, mutual funds, private equity funds and
insurance companies;
● Private business or industry associations17
;
● Cooperatives;
● Private foundations affiliated with for-profit, commercial entities; or
● Private foundations affiliated with non-for-profit and/or philanthropic goals.
III. Evaluation Considerations and Criteria
Proposed alliances will be evaluated based on the considerations and criteria set forth in
Section VI of the GDAAPS. In addition, for the purposes of this addendum, the
considerations below will also be used for prioritizing alliances.
Strategic Alignment: USAID/Nepal’s most important consideration in reviewing
applications will be the degree to which proposed alliances advance the strategic goals of
the CDCS and GFSS Nepal Country Plan by contributing to the achievement of
measurable development impacts related to the specific objectives mentioned in this
addendum: climate smart agriculture and reduced food loss and waste.
Geographic Scope: USAID/Nepal is most interested in pursuing alliances that align
geographically with existing investments in the Feed the Future Zone of Influence (FTF
ZOI). However, just as market systems cross administrative boundaries, it may make
sense to focus investments from this GDA Addendum outside of the ZOI in order to
better scale innovations, serve populations within the ZOI, or create deeper impact.
Applicants who propose to work outside of the ZOI will be asked to justify their
geographical focus based on the logic of the intervention. The map below outlines the
areas included in the FTF ZOI.
17 Example: Chambers of Commerce. Such associations and entities must be private, and the members must be entities,
not individuals. Quasi-governmental associations would not satisfy the private sector partner requirement.
16 Parastatals and government-owned companies do not qualify as private sector for purposes of meeting the private
sector collaboration and leverage requirements under this APS.
Leverage Requirement: As stated in APS No. APS-OAA-21-00001, USAID expects to
receive GDA concepts that mobilize and leverage private sector resources at a level and
value that at least equals, and preferably significantly exceeds the level of funding being
requested from USAID. The proposed leverage is expected to be reasonable, realistic
and achievable. Applicants are required to submit letters of commitment from any entity
that will be a source of private sector leverage.18 While in-kind leverage is acceptable,
proposed private sector leverage in the form of cash is preferred.
Inclusion: Under this GDAAPS Addendum, USAID seeks to advance inclusive
development by prioritizing investments in partnerships that address the needs of women,
youth, and members of marginalized groups, and will concentrate on forming
partnerships with businesses that are owned, managed, and/or operated by members of
these populations.
Local Engagement: In line with USAID’s efforts to place local communities at the center
of development efforts, USAID/Nepal seeks to use this GDA opportunity to establish
more partnerships with local private sector entities and civil society partners. Doing this
will help to accelerate investments that accrue benefit to Nepali communities, and bring
solutions to market that are appropriately contextualized and scaled for development
impact.
18 Prospective partners are advised to review Appendix I of the GDAAPS, which sets forth the terms of the private
sector leverage requirement and the criteria used to determine whether or not a contribution is potentially eligible to
count as private sector leverage.
Sustainability: Preference will be given to GDA concepts with private sector partners
who demonstrate long term commitment to the targeted region. Concepts must present a
clear sustainability strategy. Sustainability in this context is defined as “the likelihood of
long-term success of the GDA, which ultimately requires advancing private sector
business growth and economic opportunities and/or corporate social responsibility, local
ownerships, leveraging local resources and expertise, and increasing the ongoing
achievement of significant and enduring development results over time.” As a resource,
please see USAID’s Private Sector Engagement Policy.
19
Digitization: USAID/Nepal is particularly interested in establishing alliances that utilize
digital products and services to strengthen impacts in the focus areas outlined above.
There are a range of niche opportunities for digital products and services to improve the
business environment for Small and Medium Enterprises (SMEs) within the food system,
including but not limited to producers, processors of agricultural commodities,
aggregators, marketers, retailers, traders, and restaurateurs. Some opportunities for digital
products and services include information systems, e-commerce platforms, digital
financing, and data-driven sourcing and logistics. Digital innovation is not a requirement
for this APS Addendum, but will serve as a consideration when ranking potential
partners.
Proposed alliances must be consistent with USAID legal and policy restrictions,
including those set forth in USAID’s Automated Directives System (ADS) and in the
Foreign Assistance Act of 1961.
(Note: If USAID requests a full application, applicants will be given additional, specific
evaluation criteria that speak to the subject matter of the concept.)
IV. Concept Submission Instructions and Review Process
Step 1 – Explore and Engage: Private sector entities interested in developing a GDA
should contact USAID/Nepal by email at [email protected], briefly
describing (e.g, five sentences with no attachments) the problem or opportunity the
private sector wants to address, and how addressing that matter might advance the
objectives set forth in this addendum. Based on this email, USAID will determine
whether to have initial discussions aimed at learning more about possible ways to
collaborate. If the initial discussions between USAID and the private sector identify
prospective opportunities for fruitful collaboration, USAID will advise the private sector
(and, as appropriate, their partner organizations) of their eligibility to continue the
co-creation design process.20 Requests for engaging in discussions, exploring potential
GDAs, and addressing questions related to this addendum should be sent to
[email protected], copying [email protected].
20 USAID’s GDA co-creation process: https://www.usaid.gov/gda/co-creation-process
19 USAID Private Sector Engagement Policy:
https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf
Step 2 – USAID Indicates whether a Concept can be Submitted: USAID/Nepal will send
an email to the potential applicant confirming the Step 1 discussions, and indicating
whether USAID/Nepal is interested to move forward with a concept paper submission.
Concept papers will not be reviewed unless USAID/Nepal’s GDA team provides an email
confirming the completion of initial Step 1 discussions with the private sector and
indicating USAID/Nepal’s willingness to receive and review a concept paper submission.
Step 3 – Concept Paper Submission: If USAID/Nepal indicates a willingness to entertain
and review a concept paper, the applicant must address the objectives and criteria
presented in this addendum, using the GDA Concept Paper Template found at
www.usaid.gov/gda/aps-2020-2022/concept-paper-template. Applicants are required to
follow all concept paper submission instructions set forth in Section V of the GDAAPS.
Concept papers should be submitted to [email protected], copying
[email protected].
Step 4 – USAID Reviews Concept Paper: Concept papers will be reviewed on a rolling
basis, subject to the availability of funds. All concept papers must be submitted by
December 16, 2022 at 5:00pm (Nepal Standard Time) in order to be considered.
Applicants can expect to receive a response regarding their official concept paper within
45 days of submission. After review by USAID/Nepal, applicants will receive
instructions on whether to continue with co-creation under the GDA APS.
Step 5 – Proceed to Co-Creation: After review by USAID/Nepal, applicants will receive
instructions on whether to continue with co-creation under the GDA APS. An interest in
continuing with the process is NOT a commitment to an award or even a request for a full
application. Those determinations will be made after further co-creation efforts, and
depending on what emerges from that process, USAID may request a full application or
proceed directly to award development. USAID/Nepal will be responsible for the review
process and management of any awards issued under this addendum.
VI. Questions and Further Assistance
Questions regarding the substance and objectives of this addendum should be directed to
[email protected], copying [email protected].
USAID/Nepal will entertain and respond to questions at any point in the award process
described above, whether during verbal discussions or via emails. However, past
experience indicates that addressing recurrent questions publically, as early as possible in
the process is of tremendous value to prospective partners as well as to USAID. To
ensure that answers to frequently asked questions (FAQs) and clarifications of general
interest can be communicated publically, USAID/Nepal requests that interested parties
submit any questions about this addendum as soon as possible, and preferably before
June 1, 2022. Select questions that clarify matters in the addendum will be posted on
www.grants.gov on an ongoing basis as needed. USAID/Nepal will not post all questions
that are submitted, only those that USAID determines will clarify matters under the
addendum.
For additional information regarding guidelines and procedures to submit a concept,
please refer to the GDA APS which can be found at the following website:
https://www.usaid.gov/gda/global-development-alliance-annual-program.