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.. pPage 1 of 49 Government of Nepal Ministry of Agricultural Development High Value Agriculture Project in Hill and Mountain Areas (HVAP) Value Chain Fund Guidelines 1 (Revision 1) 2 Project Management Unit March 2014 1 The First version of this guidelines was approved by MoAD on 1 st July, 2012 (2069/03/17) and No Objection from IFAD was received on 10 th August, 2012, 2 No Objection for this revised guidelines received from IFAD on 6 th May, 2014 and approved by MoAD on 16 June, 2014

High Value Agriculture Project in Hill and Mountain Areas (HVAP) Chain Fund Guidelines... · 2015-05-28 · BEP Break Even Point ... HVAP High Value Agriculture Project in Hill and

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.. pPage 1 of 49

Government of Nepal

Ministry of Agricultural Development

High Value Agriculture Project in Hill and Mountain Areas (HVAP)

Value Chain Fund Guidelines1

(Revision 1)2

Project Management Unit

March 2014

1 The First version of this guidelines was approved by MoAD on 1

st July, 2012 (2069/03/17) and No Objection

from IFAD was received on 10th August, 2012,

2 No Objection for this revised guidelines received from IFAD on 6

th May, 2014 and approved by MoAD on 16

June, 2014

.. pPage 2 of 49

This is a live document, which can later be amended during the implementation if felt

necessary. However, such amendments shall be operational only after endorsement from

Ministry of Agricultural Development (MoAD) of Government of Nepal and the International

Fund for Agriculture Development (IFAD).

.. pPage 3 of 49

Acronyms

AEC Agro Enterprise Centre

BEP Break Even Point

BPAP Business Plan Assessment Panel

DADC District Agriculture Development Committee

DADO District Agriculture Development Office

DCCI District Chamber of Commerce and Industry

DFO District Forest Office

DLSO District Livestock Service Office

EOI Expression of Interest

FNCCI Federation of Nepalese Chamber of Commerce and Industry

GoN Government of Nepal

GSI Gender and Social Inclusion

HVAP High Value Agriculture Project in Hill and Mountain Areas

HVC High Value Commodity

IFAD International Fund for Agriculture Development

IRR Internal Rate of Return

LNGO Local NGO

M&E Monitoring and Evaluation

MAPs Medicinal and Aromatic Plants

MoAD Ministry of Agriculture Development

MOU Memorandum of Understanding

NTFP None Timber Forest Product

PBP Pay Back Period

PMU Project Management Unit

RDs Regional Directorates

ROI Return on Investment

SNV The Netherlands Development Organization

TOR Terms of Reference

VC Value Chain

Table of Contents Acronyms ...................................................................................................................................................... 3

.. pPage 4 of 49

1. Project Overview ................................................................................................................................... 6

1.1. Introduction .................................................................................................................................. 6

1.2. Implementation Arrangement ...................................................................................................... 6

2. Value Chain Fund .................................................................................................................................. 6

2.1. Area of Investment ....................................................................................................................... 7

2.2. Objective ....................................................................................................................................... 7

2.3. Purpose of the Value Chain Fund Guidelines ............................................................................... 7

2.4. Effectiveness of Guidelines ........................................................................................................... 8

2.5. Fund Allocation ............................................................................................................................. 8

2.6. Investment Windows .................................................................................................................... 8

3. Value Chain Fund Procedure ................................................................................................................. 9

3.1. Formation of VC Team .................................................................................................................. 9

3.2. Formation of VC Management Committee ................................................................................ 10

3.3. Solicitation of EOI/Investment proposal ..................................................................................... 10

3.4. Screening and Short-listing ......................................................................................................... 11

3.5. Field Verification ......................................................................................................................... 11

3.6. Call for Business Plan (from producer groups, cooperatives and (agri)-business) ..................... 12

3.7. Internal Assessment of Business Plan/Investment proposal ...................................................... 12

3.8. Assessment Criteria .................................................................................................................... 13

3.9. Business Plan Assessment by BPAP ............................................................................................ 14

3.10. Negotiation and Grant Agreement ......................................................................................... 14

3.11. Fund disbursement ................................................................................................................ 15

3.12. Mode of payment (indicative)................................................................................................ 15

4. Management & Administration .......................................................................................................... 15

4.1. Technical backstopping for business plan preparation and implementation of co-

investment activities ............................................................................................................................... 15

4.2. Procurement ............................................................................................................................... 15

4.3. Accounting .................................................................................................................................. 16

4.4. Repair and Maintenance Arrangement ...................................................................................... 16

4.5. Ownership ................................................................................................................................... 16

4.6. Transparency and Good Governance and Audit Provisions ....................................................... 16

4.7. Restriction to use of co-investment fund ................................................................................... 16

5. Monitoring/Evaluation and Reporting ................................................................................................... 17

5.1. Monitoring & Evaluation .................................................................................................................. 17

.. pPage 5 of 49

Monitoring and evaluation should focus on: ............................................................................................ 17

5.2. Co-investment Completion Certification and Reporting Arrangement ........................................... 17

Annexes ....................................................................................................................................................... 18

Annex A: Grant Application Assessment Records (For Window 1: Agribusiness and Cooperatives /

Institutional service providers) ............................................................................................................... 18

Annex B: Grant Application Assessment Records (For Window 1: Individual Service Provider) ............ 23

Annex C: Grant Application Assessment Records (For Window 2: Producers Groups/Cooperatives) ... 25

Annex D: Terms of References for Business Plan Assessment Panel (BPAP) .................................... 28

Annex E: Grant Agreement (for window 1) ............................................................................................ 31

Annex F: Grant Agreement (for window 2: Nepali version) ................................................................... 38

Annex G: Sub-project Completion Report Format (Window 2: Nepali version) ..................................... 43

.. pPage 6 of 49

1. Project Overview

1.1. Introduction

The High Value Agriculture Project in Hill and Mountain Areas (HVAP) is a market led

initiative that seeks to provide income and employment benefits to poor, small holder

farmers and landless through the development and upgrading of inclusive value chains in

the Mid and Far Western Region of Nepal. The project focuses on facilitating mutually

beneficial and profitable arrangements between suppliers and buyers of High Value

Commodity value chains. Funded by the International Fund for Agriculture Development

(IFAD) and executed by Ministry of Agriculture Development (MoAD), the Project is in

implementation since July 2010 and is expected to continue till September 2017.

The overall goal of HVAP is “the reduction of poverty and vulnerability of women and men in hill and mountain areas of the Mid-Western Development Region” and the project purpose is the “rural poor, especially women and marginal groups, are integrated in high value agriculture and non-timber forest product (NTFP) /medicinal and aromatic plant (MAP) value chains and markets and have improved income, employment opportunities and ability to respond to market demand and opportunities based on marketing agreements with private agribusiness”.

Based on the newly constructed road corridors (Surkhet-Chhinchu-Jajarkot (132 km),

Surkhet-Jumla (232 km) and Surkhet –Dailekh (68 km)), the project is being implemented in

7 districts -Dailekh, Jajarkot, Jumla, Kalikot, Salyan, Surkhet, and Achham.

1.2. Implementation Arrangement

The Ministry of Agriculture Development (MoAD) is the main executing agency. The

Netherlands Development Organization (SNV) and Agro Enterprise Centre (AEC) of the

Federation of Nepalese Chamber of Commerce and Industries (FNCCI) are the main

implementing partners. A Surkhet based Project Management Unit (PMU) led by MoAD

official (the Project Manager) and comprising of staff from MoAD (deputed and contracted),

SNV, and AEC are ensuring project implementation. In addition, some of the district level

activities are being carried out by partner NGOs, backstopped and supported by PMU and

district line agencies (DADO, DLSO, and DFO).

2. Value Chain Fund

The Value Chain Fund will provide matching grant fund to support value chain actors

(producer groups, cooperatives, agribusinesses) and service provider for co-investment that

tackle identified value chain constraints, make use of identified opportunities and

demonstrate replicable innovations in business, production or service models. Innovations

are considered to be elements of the investment that are being implemented for the first

time in the local area and have therefore high risk levels. Additionally the value chain fund

.. pPage 7 of 49

may also be used to up-scaling/replication of already demonstrated business, production

and service models. Investments can cover “hardware” as infrastructure and equipment

costs as well as "software" such as management, organisational and technical support,

certification and other services. In any case for any “hardware” investment, “software”

investments should be integrated as part of the overall investment to address investments

risks and assure reliability. In case of innovations, additional monitoring and sharing

mechanisms have to be planned to maximise replication/up-scaling.

2.1. Area of Investment

Eligible costs may include all reasonable costs essential for the proposed business

investment except working capital. Followings are example of co-investment:

Innovative business, market and service linkages and market promotions activities

Management systems like demand based planning and internal quality control systems

Business structures in, for example, sourcing arrangements (like joint investments and management of facilities), new contract or pricing mechanisms

Appropriate technology adaptation and products like improved equipments and facilities for productivity enhancement and value additions in the area of production, post harvest handling, processing, packaging, transportation and marketing.

Business arrangements and approaches like innovative modality for skill enhancement and support services provisions for improved production, post harvest handling, processing, marketing and other business development services (training, technical backstopping and business support service), combining involvement of different actors buyers, financial institutions and the traditional service providers

Approaches to scaling-up like the use of agents and other individuals combining bulking with services and skill enhancements and other investments e.g. aggregator models

Approaches to market instruments like joint investments in distribution and sales networks

Certification systems – seed certification, organic certification etc.

2.2. Objective

The objective of the Value Chain Fund is to support value chain actors and service providers

in developing and testing new and innovative ways of doing business addressing value chain

constraints and/or using identified opportunity and replication/up scaling of proven

innovations.

2.3. Purpose of the Value Chain Fund Guidelines

The purposes of the Guidelines are:

To provide guiding principle, procedures, eligibility and evaluation criteria for selecting viable co-investment and their smooth implementation.

.. pPage 8 of 49

To enhance the capacity and understanding of the project stakeholders and implementing partners on the implementation of Value Chain Fund at field level.

To assist and guide the Project Management Team in planning, implementing, supervision and monitoring project investment through value chain fund.

2.4. Effectiveness of Guidelines

The revisions in the guidelines have been made based on the recommendation made by IFAD and GoN joint Mid-term Review Mission conducted from 5 to 23 January 2014 and will be effective immediately after the final endorsement by both the MoAD and IFAD.

2.5. Fund Allocation

HVAP has allocated USD 3.4. million under Value Chain Fund. Allocation of funds to different

value chains will be decided by PMU after the finalization of number/nature of value chains

that the project will work with and the investment requirement for those value chains.

2.6. Investment Windows

The Value Chain Fund will be made available for investment at both the demand and supply side through the two windows – Window 1 and 2. Target co-investment recipients, eligibility criteria, grant limit and matching fund ratio are as follow:

Window 1

Co-investment fund recipient

Eligibility Criteria Grant Limit Matching fund Ratio

Remarks

Company/firm/Service Provider (Institutional)

Registered for 3 years and have 3 years relevant business experience

US$ 100,000

50:50

Company/firm/Service Provider (Institutional)

12 months business experience

after registration with at least 3

years demonstrable experience

in VC3

US$ 10,000 50:50

Cooperatives Registered for 3 years and have 3 years cooperative business experience

US$ 100,000

50:50

Service Provider (Private individuals)

Certified as eligible for proposed service provision

US$ 500 50:50

*Additional consideration for (Agri) -business eligibility criteria

Any newly established company or Joint Venture can apply for matching grant fund provided that the majority of shareholder(s) (having at least 51% of share

3 This eligible criteria is added as recommendation of 4

th Supervision Mission, No Objection from IFAD and

approved from MoAD

.. pPage 9 of 49

holding in proposed joint venture) meet the criteria of 3 years business experience in their own firm/company and the shareholding should not be reduced to less than 51% at least within the grant implementation period.

Where the grant applicant has foreign investors as shareholders, the foreign

ownership shall not be more than 33%.

Fund diversion should not be allowed and grant recipient should be the actual

beneficiary of the funds.

Window 2

Beneficiary Eligibility Criteria Grant Limit Matching fund Ratio

Producers Groups/ Cooperatives

Registered for 1 year with relevant Govt. Agency and have relevant experience**

US$ 20000 85:15 or 50:50##

** The requirement of year of experience will be waived in case of farmers groups formed and mobilized/facilitated by HVAP.

## The matching grant fund will be 85:15 for innovation related investment and 50:50 for replication and up scaling of already proved innovations.

3. Value Chain Fund Procedure

3.1. Formation of VC Team

Value Chain Team will be formed for each VC (or group of VCs) comprising of VCD, Business

and Technical experts/staff. The team will draw on support from other cross-cutting

thematic expertise within the PMU, including: GSI and Institutional Development, Planning,

M&E, Funds managements, Finance and Procurement. The team is fully accountable for all

targets set in the respective value chains including the co-investments proposals.

In relation to VC fund Management, the role of the VC Team will be as follows:

a) Update and finalise VC action plan, identify VC priority investment area. b) Ascertain the proposed investment is innovation related or replication/up-scaling of

already proved innovations. c) Coordinate the process of preliminary screening and field verification of EOIs. d) Coordinate the process of analysis of investment options and business plan

development facilitation (for innovations a process of joint development and monitoring will take place to assure that investments risks are addressed and sharing takes place to catalyse replication/scaling-up).

e) Recommend to VC Management Committee for approval (or reject) of Business Plans with justifications

.. pPage 10 of 49

3.2. Formation of VC Management Committee

The VC Management Committee comprise of Deputy Project Director (Senior Agriculture

Officer) from MoAD; team leader from AEC and SNV; Account Officer and Planning Officer of

PMU/HVAP. The committee will be headed by Senior Agriculture Officer and Planning

Officer will be the member-secretary. The committee may invite other officers/experts as

invitee, as per necessary. The role of VC Management Committee, in relation to VC Fund

management, will be as followings:

a) Provide guidance and supervision to VC Teams b) Recommend to the Project Manager for approval (or rejection) of the Business

plans/Investment proposals of private service provider (Under Window 1) and all groups and cooperatives (under Window 2)

c) Recommend to the Project Manager for the Window 1 business plans of agribusinesses, cooperatives and institutional service providers for independent assessment by BPAP for external review.

d) Recommend to the Project Manager for all approved business plans for grant agreement.

3.3. Solicitation of EOI/Investment proposal

(i) For Window 1 Co-investment proposals (applicable to Cooperatives and

(Agri)-business for both product and input/service markets): Expression of

interest (EOI) can be solicited through formal public call or informally by using

business network of FNCCI/AEC and DCCI. The EOI may be accepted in any

time of the year.

(ii) For Window 1 Co-investment proposals (applicable to Individual Service

Providers): Investment proposal can be solicited through formal public call

or informally by using business network of district line agencies and DCCI. The

Investment proposal may be accepted in any time of the year.

(iii) For Window 2 Co-investment proposals: EOI from eligible producer groups

and cooperatives will be accepted any time of the year. HVAP/PMU may

solicit EOI from interested and eligible producer groups and cooperatives

through public notice in district level or national media, as and when required

basis. The copy of "call for EOI" will also be sent to relevant DCCIs, district line

agencies and local NGOs for wider dissemination of the information to

producers groups and cooperatives. In addition to that, VC team, with close

collaboration with PMU GSI team and partner NGOs, can directly invite EOI

(without public call) from groups and cooperatives, which have been formed

and mobilized by HVAP, irrespective of their year of experience.

.. pPage 11 of 49

3.4. Screening and Short-listing

VC Team will conduct a preliminary assessment and short-list of EOI/Investment proposal on

the basis of knock-out and preferred pre-defined criteria such as experience of the

organizations; technical feasibility of the sub-project; financial and managerial capabilities;

commercial viability (market potentialities, remoteness, within/outside the HVAP command

areas); and social impact (inclusion of disadvantaged groups, potentiality of scaling-up etc.).

Respective DCCIs, RDs, DADOs, DLSOs and DFOs can be invited for consultation, if required,

in the screening process. Upon recommendation from the VC team, PMU will prepare short-

list of EOI considering availability of budget to finance numbers and types of co-investment

ensuring the followings:

- The proposal meets the eligibility criteria. - The proposed co-investment is linked with VC priority as per intervention strategy

and action plan and very likely to address the VC constraints and grab the opportunities.

- Timeframe of the proposal does not go beyond HVAP project lifespan.

3.5. Field Verification

After the initial desk review, VC team will organize field verification of short-listed

EOIs/Investment proposal. Field verification should not be a requirement in the case of

groups identified by HVAP as eligible for Window 2 investments as all the pre-assessment

have already been made during the formation and mobilization of groups.

For Window 1 applicant (Cooperatives and (Agri)-business):

The field verification team should comprise at least the representation of expertise

from VCD/Business, Technical and Funds and Contract Management themes. During

the field verification, the team will verify the proposal and make an assessment

considering:

- the proposed co-investment is linked with VC priority as per intervention strategy and action plan and very likely to address the VC constraints and grab the opportunities.

- the different investment options which are technically and commercially viable.

- the grant applicant entity does have the management capacity to implement the proposed co-investment including relevant agribusiness experience.

- the grant applicant entity do have the financial capacity to implement the proposed investment (wider range of evidence are acceptable as proof of profitable business record, not limited to audited financial statement, such as sales records, bank transaction etc. ).

- the proposed investment is a replicable innovation and has a substantial scope for replication and up-scaling.

.. pPage 12 of 49

- the investment is likely to produce significant and sustainable impact and growth as per project objectives.

For Window 2 applicant

The field verification team should comprise at least the representation of

VCD/business, technical and Gender and Social Inclusion expertise from PMU and

representative of partner NGO. Representative from district line agencies (DADO,

DLSO and DFO) and district DCCI will be invited, as relevant. During the field

verification, the team will verify the proposal and make an assessment considering:

- the proposed co-investment is linked with VC priority as per intervention strategy and action plan and very likely to address the VC constraints and grab the opportunities.

- the different investment options which are technically and commercially viable.

- the proposed co-investment is replicable innovation or up-scaling/replication of already proved innovations.

- appropriateness of proposed grant and co-investment ratio.

- the grant applicant entity does have the management and financial capacity to implement the proposed co-investment.

- the co-investment should produce a significant and sustainable catalysing impact on inclusion of poor, woman, dalit and janajaties.

3.6. Call for Business Plan (from producer groups, cooperatives and (agri)-business)

The short-listed applicants, after the field verification, will be called to submit a Business

Plan to the PMU. The format for Business Plan will be provided by the PMU. HVAP Business

Development Advisors/Officers, taking lead in close coordination of other concerned

officers/advisors/experts of the PMU, will provide facilitation and support in the process of

business plan preparation. Support may include civil works co-investment preparation by

PMU Engineer. In particular, for innovations a process of joint development and monitoring

will take place to assure that investments risks are addressed and sharing takes place to

catalyse replication/scaling-up.

3.7. Internal Assessment of Business Plan/Investment proposal

The VC team will review and make an internal assessment of business plan/investment

proposal. The VC team can draw support from other PMU thematic expertise in the

assessment process. The business plan/investment proposal meeting all the assessment

criteria will be submitted, with recommendation, to VC Management Committee for further

process.

.. pPage 13 of 49

3.8. Assessment Criteria

S. N. Assessment Criteria Description Score

1. Technical viability Whether the proposed sub-project is technical viable 20

2. Commercial

Viability

Whether the proposed sub-project is likely to be

commercially viable from a financial, operational and

market perspective.

25

3. Management and

Financial Capacity

to implement

Does the applicant have the necessary skills,

experience and or suitable support arrangements to

be a credible implementer of the proposed sub-

projects

25

4.

Impact

Impact on the project target beneficiaries

particularly in terms of additional employment,

income and sharing of VC benefits.

10

Innovative business idea with high probability of

replication regarding ease of adoption and the

availability/accessibility of resources (pre-condition)

for others to replicate.

10

Catalysing factors: Potentiality for generating

additional investment in VC development (through

equity investment and/or loan from financial

institutions).

10

Total Score 100

Pass Marks 60

For Window 1 value chain funds (cooperatives and (agri-) business), the VC teams should

develop a risk assessment document that summarizes project's assessment of financial

viability of the co-investments, business risk, management risk, grant covenants and

justification of the grant percentage and provide to BPAP for evaluation, accompanied with

the applicant's investment proposal.

The VC Management Committee will recommend and send the business plans submitted by

Agribusiness and Cooperatives under Window 1 provision to the Project Manager for

external assessment by the Independent Business Plan Assessment Panel (BPAP).

Investment proposal submitted by individual Service Provider (under Window 1- grant limit

.. pPage 14 of 49

US$ 500) and all the business plans under Window 2 will be evaluated internally and

approved by the Project Manager with recommendation from the VC Management

Committee.

3.9. Business Plan Assessment by BPAP

The Business Plan Assessment Panel (BPAP) consists of 4 independent experts. The

committee will be chaired by one of the private sector representatives. The composition of

committee will be as below:

- Private Sector Representative (business expert) - 1

- Business finance Expert -1

- Agriculture or Livestock or Agro- Forestry Expert – 1 (as per nature of co-

investment)

- Impact Perspective Expert – 1

The responsibilities of the BPAP will be as follows:

Review the business plan and evaluate them according to pre-set criteria.

Recommend to PMU for approval of business plans securing at list 60% of the total score.

If the independent BPAP considers the business plan meeting minimum criteria but

need some adjustments, can recommend to HVAP for approval after adjustment as

required.

The detail ToR and Eligibiltiy Criteria for BPAP are detailed in Annex-D

3.10. Negotiation and Grant Agreement

PMU may negotiate with applicants of approved business plans, as needed, and a Grant

Agreement will be signed between HVAP and the Applicants of approved business

plan/investment proposal. The format of grant agreement is given in Annex E and F.

The grant recipient may request for revision in grant agreement in case of following

conditions:

a) substantial increase/decrease in market price of the goods and services which is beyond the control of grant recipient and HVAP, or changes in the specification of the inputs, machineries, equipment etc, as specified in the already approved business plan

b) in case of additional project support is needed to include additional beneficiaries and up scaling in terms of increase in area and production.

In such conditions, the grant agreement may be revised with a written agreement between

HVAP and the grant recipient. If the proposed revision exceeds the approved grant amount,

.. pPage 15 of 49

the complete process of assessment (ref. article 3.7 to 3.9 above) should be followed. In any

case, the revised grant amount will not exceed the grant limit as specified in article 2.6

(investment windows).

3.11. Fund disbursement

Project fund will be released from HVAP as per sub-project implementation and investment schedule agreed between PMU and grant recipient.

Fund will be transferred to recipients' bank account.

3.12. Mode of payment (indicative)

First instalment4 (mobilization fund) - up to 30% of total grant amount will be released after the Grant Agreement signed between the recipient and the PMU.

Successive instalments (up to 50%) - will be released based on achievement of implementation milestone and utilization of previous instalments after submission of sub-project interim progress report.

Final instalment (remaining balance) - after submission of sub-project completion report duly certified by VC team with support from designated project staff.

4. Management & Administration

4.1. Technical backstopping for business plan preparation and implementation of co- investment activities

The VC team will coordinate the process of solicitation of EOI/investment proposal, short

listing, field verification, facilitation for business plan/investment proposal preparation and

in implementation of co-investment in collaboration with partner LNGOs. PMU cross-cutting

experts will provide technical backstopping in particular thematic area. In particular for

innovations, a process of joint development and monitoring will take place to assure that

investments risks are addressed and sharing takes place to catalyse replication/scaling-up.

4.2. Procurement

Procurement of items required under the supported co-investments will be managed by the

grant recipient as long as they are in-line with the approved business plan. Grant recipient

will follow standard procurement procedure and will be solely responsible for the final

decision on which suppliers to use although their business plans will have already included

at least three quotations for all major purchases as part of the estimation of investment

costs and grant amounts. 4 The (Agri) – business company/firm receiving HVAP fund for Window 1 need to submit bank guarantee for the

amount and period of first installment. In absence of the bank guarantee, the grantee will have to pre-finance and submit the statement of accounts including supporting documents for reimbursement.

.. pPage 16 of 49

4.3. Accounting

The Grant recipient should maintain a separate book of accounts for the approved co-investment.

The grant recipient should keep all the bills, receipts, quotations, contracts, minutes of meeting and any other documents related to payments from the co-investment fund.

Competent authorities from IFAD and GoN including HVAP/PMU or their representative can verify those documents any time.

4.4. Repair and Maintenance Arrangement

The responsibility for repair & maintenance of facilities created from co-investment fund

remains with the grant recipient. HVAP will not provide extra fund for this purpose. For this

purpose, the producer groups/cooperatives should prepare operation and maintenance

plan and create a repair, maintenance and operational fund by collecting service charge

against use of facilities by their members.

4.5. Ownership

The ownership of the assets/property created by the co-investment will remain with the

concerned VC Groups/Cooperatives and (Agri-) businesses.

4.6. Transparency and Good Governance and Audit Provisions

Grant recipient should make public announcement of co-investment progress and status in their regular meeting.

A Public Notice Board should be maintained at all the infrastructure site to publicise the co-investment information including sources and uses of fund.

The Grant recipients should arrange the financial audit according to their own statute, policy, norms and regulations and submit the audit report to PMU.

4.7. Restriction to use of co-investment fund

The project fund should not be used for:

Purchase of land

Lending to earn interest/speculative investment

Purchase of second hand machines/equipments

To manage domestic and social events

Any other work as restricted by the law of Government of Nepal.

.. pPage 17 of 49

5. Monitoring/Evaluation and Reporting

5.1. Monitoring & Evaluation

For Window 1 co-investments - by VC teams, other PMU staff and/or DCCI (for local agribusiness)/RDs and District Line Agencies coordinated by VC teams.

For Window 2 co-investments - by VC teams and other PMU/RDs/District Line Agencies/DCCI/Local NGO staff coordinated by VC teams

Monitoring and evaluation should focus on:

Project grant fund and matching fund contributions received in time and properly recorded.

Fund accounting system has been set up.

Fund is being used only for the purpose as per agreed business plan.

Physical progress and financial delivery target are met.

Machineries/equipments and facilities created by co-investment are running effectively.

Compliance with MOU, norms and policies internally developed as well as grant agreement and PMU guidelines for fund management.

Documentation related to co-investment activities (minutes, decisions and accounting documents) are well maintained.

Impact on target beneficiaries.

Adverse effects/impact on the environment.

5.2. Co-investment Completion Certification and Reporting Arrangement

Grant recipient will submit interim reports on physical and financial progress and final reports after completion of co-investment activities as agreed in grant agreement.

Local level traders/cooperatives/producers groups will submit their report to VC team at PMU and copy to Local NGO and district line agencies.

Local NGO will prepare and submit quarterly report through Road corridor /district based PMU Officer/expert to VC teams at PMU on general progress and performance of co-investment implementation in their command area which will also be copied to concerned line agencies.

.. pPage 18 of 49

Annexes

Annex A: Grant Application Assessment Records (For Window 1: Agribusiness and Cooperatives / Institutional service providers)

Applicant Organisation

Address

District

Value Chain

Proposed VC Functions

A. Assessment of EOI (by VC team):

1. Meeting eligibility criteria

Registration Date*: Date: ...............................

Years of experience: ....................... years

Applicable to Joint Venture only

Business experience of Majority of

shareholder(s) holding at least 51% of share

(applicable to joint venture) **

........................ Years

Foreign Investment ............................ %

Recommended for field

verification

Reject

*Registration Certificate submitted

**A list showing the shareholding and years of relevant business experience by the

shareholders is attached.

2. Assessment during field verification

Check lists Tick the box

below

The proposed co-investment is linked with intervention strategy, VC

priority and action plan and very likely to address the VC constraints

and grab the opportunities.

The proposed co-investment is technically and commercially viable.

.. pPage 19 of 49

Check lists Tick the box

below

The grant applicant entity does have the management capacity to

implement the proposed co-investment including relevant

agribusiness experience.

The grant applicant entity do have the financial capacity to implement

the proposed investment (wider range of evidence are acceptable as

proof of profitable business record, not limited to audited financial

statement, such as sales records, bank transaction etc.).

The proposed co-investment is a replicable innovation and has a

substantial scope for up-scaling and inclusion.

The investment is likely to produce significant and sustainable impact

and growth as per project objectives.

Recommended to go for

Business Plan preparation

Reject

B. Internal Assessment of Business Plan

This assessment should accompany the Business Plan to be submitted to BPAP for

external Assessment.

1. Assessment of Technical Viability

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

2. Assessment of commercial viability

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

.. pPage 20 of 49

3. Assessment of financial viability

IRR

ROI

PBP

BEP

4. Assessment of Business Risk

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

..............................................................................................................................

5. Assessment of Management risks

...................................................................................................... .................

...................................................................................................... .................

.......................................................................................................................

.......................................................................................................................

.......................................................................................................................

6. Justification of Investment and Grant Percentage

.......................................................................................................................

.......................................................................................................................

....................................................................................................... ................

...................................................................................................... .................

.......................................................................................................................

C. Recommendation from VC Team

With the Consensus of all the team members, the VC Team recommends the

Business Plan to:

Send to BPAP Reject

Signed on behalf of VC Team:........................

Name...................................................... Date: ......................

.. pPage 21 of 49

D. Recommendation from VC Management Committee

The meeting of VC Management Committee held on ......................... recommends

to send this business plan for independent evaluation by BPAP.

Signature: ........................... ......................... ........................

Name: .............................. ................................... ..............................

E. Independent Assessment of Business Plan by BPAP

1. Meeting Assessment Criteria

Assessment

Criteria Description

Maximum

Score

Assigned

Score

Technical

viability

Whether the proposed sub-project is

technical viable

20

Commercial

Viability

Whether the proposed sub-project is

likely to be commercially viable from

a financial, operational and market

perspective.

25

Management

and Financial

Capacity to

implement

Does the applicant have the

necessary skills, experience and or

suitable support arrangements to be

a credible implementer of the

proposed sub-projects.

25

Impact

Impact on the project target

beneficiaries particularly in terms of

additional employment, income and

sharing of VC benefits.

10

Innovative business idea with high

probability of replication regarding

ease of adoption and the

availability/accessibility of resources

(pre-condition) for others to

replicate.

10

Catalysing factors: Potentiality for

generating additional investment in

.. pPage 22 of 49

Assessment

Criteria Description

Maximum

Score

Assigned

Score

VC development (through equity

investment and/or loan from

financial institutions).

10

Total Score 100

Pass marks: 60

2. BPAP recommendations for adjustment:

a. ................................................................................................................

b. ................................................................................................................

c. ...............................................................................................................

d. ...............................................................................................................

F. Recommendation from VC Team

As the proposed investment plan a) met all the eligible criteria b) passed through the

internal and external assessment and c) all the recommendation from BPAP has

already been adjusted in the Business Plan, the meeting of VC team held on

...................................... recommends for approval.

Signed on behalf of VC team ...................................................

Name: ...........................................................

Designation:....................................................

G. Recommendation from VC Management Committee

The meeting of VC Management Committee held on ............................. recommends

for approval.

Signed on behalf of VC Management Committee

Signature: ............................ ........................... .................

Name: ................................. .................................... .............

Designation: ............................. ................................... ........................

.. pPage 23 of 49

Annex B: Grant Application Assessment Records (For Window 1: Individual Service Provider)

Applicant Organisation/

Individual

Address

District

Value Chain

Proposed services

Proposed Clients

(including coverage of

geographical area)

A. Assessment of Investment Proposal:

Checklist of assessment Criteria Tick the box

The proponent has authorised with proper certification to provide

proposed services.*

The proposed co-investment is linked with VC priority as per intervention strategy and action plan and very likely to address the VC constraints and grab the opportunities.

The proposed co-investment is technically and commercially viable.

The grant applicant does have the management capacity to implement the proposed co-investment including relevant experience in service provision. Service

The proposed co-investment is likely to produce significant and

sustainable impact as per project objectives.

Recommended to: Accept Reject

*Certificate submitted

.. pPage 24 of 49

B. Recommendation from VC Team

The proposed co-investment meets all the eligible criteria and passed through the

internal assessment. The meeting of VC team held on .............................

recommends for approval.

Signed on behalf of VC team ...................................................

Name: ............................................. Designation: ....................................................

C. Recommendation from VC Management Committee

The meeting of VC Management Committee held on ............................. recommends

for approval.

Signed on behalf of VC Management Committee

Signature: ................................... ................................... .......................

Name: ................................... ................................... ........................

Designation: ............................ .................................. .......................

.. pPage 25 of 49

Annex C: Grant Application Assessment Records (For Window 2: Producers Groups/Cooperatives)

Applicant Organisation

Address

District

Value Chain

Proposed VC functions

A. Assessment of EOI:

Registration Date*: Date: ...............................

Years of experience: ....................... years

Is this groups/cooperative is formed and

mobilized by HVAP**

Yes No

Recommended for field

verification

Reject

*Registration Certificate submitted

**In case of Groups/Cooperative formed and mobilised by HVAP, the year of experience

will be waived and field verification is not required.

B. Assessment during field verification

Check lists Tick the box

below

The proposed co-investment is linked with intervention strategy, VC

priority and action plan and very likely to address the VC constraints

and grab the opportunities.

The proposed co-investment is technically and commercially viable.

The grant applicant entity does have the management capacity to

implement the proposed co-investment.

The grant applicant entity does have the financial capacity to

implement the proposed investment.

.. pPage 26 of 49

Check lists Tick the box

below

The proposed co-investment is a replicable innovation and has a

substantial scope for up-scaling.

The investment is likely to produce significant and sustainable

catalysing impact on inclusion of poor, woman, dalit and janajaties

and growth as per project objectives.

Recommended to go for

Business Plan preparation

Reject

C. Internal Assessment of Business Plan

Assessment

Criteria Description

Maximum

Score

Assigned

Score

Technical

viability

Whether the proposed sub-project is

technical viable

20

Commercial

Viability

Whether the proposed sub-project is

likely to be commercially viable from

a financial, operational and market

perspective.

25

Management

and Financial

Capacity to

implement

Does the applicant have the

necessary skills, experience and or

suitable support arrangements to be

a credible implementer of the

proposed sub-projects.

25

Impact

Impact on the project target

beneficiaries particularly in terms of

additional employment, income and

sharing of VC benefits.

10

Innovative business idea with high

probability of replication regarding

ease of adoption and the

availability/accessibility of resources

10

.. pPage 27 of 49

Assessment

Criteria Description

Maximum

Score

Assigned

Score

(pre-condition) for others to

replicate.

Catalysing factors: Potentiality for

generating additional investment in

VC development (through equity

investment and/or loan from

financial institutions).

10

Total Score 100

Pass marks: 60

D. Recommendation from VC Team

The proposed investment plan meets all the eligible criteria and passed through the

internal assessment, the meeting of VC team held on .............................

recommends for approval.

Signed on behalf of VC team ...................................................

Name: ................................................. Designation: .............................................

E. Recommendation from VC Management Committee

The meeting of VC Management Committee held on ............................. recommends

for approval.

Signed on behalf of VC Management Committee

Signature: ............................... ............................ .........................

Name: .................................... ........................... ...........................

Designation: .............................. .......................... ............................

.. pPage 28 of 49

Annex D: Terms of References for Business Plan Assessment Panel (BPAP)

Introduction

HVAP has made funding provisions as 1) Value Chain Fund, 2) Sector Development Facility, 3) Poverty Inclusion Fund and 4) Spatial Inclusion Fund. The purpose of the Value Chain Fund is to allow agri-businesses, value chain groups and cooperatives to make essential investment to facilitate the production and subsequent primary processing/storage of selected high value commodities.

An important step in the selection procedure for the co-investment support is the independent and external assessment of submitted business plans. Business plans are especially important as they are the core of sub-project investment. Impartiality and neutrality is vital to an effective evaluation of the business plan, and an independent evaluator is often the surest method of attaining that. To serve this purpose, it has been realized to form an independent panel for business plan assessment. This Terms of References (TOR) has been prepared for the selection of external experts for business plan assessment panel in HVAP.

Purpose of Business Plan Assessment Panel

The propose of business plan assessment panel is to support PMU to make independent and impartial assessment on the business plans submitted for project funding by ensuring that guidelines and assessment criteria have been applied consistently and equitably for all business proposals.

Formation of Business Plan Assessment Panel

The Business Plan Assessment Panel will consist of four members (1 from private sector business background, one from finance background, one from social impact background, and one from agriculture, livestock or agro-forestry related field). The PMU will request for expression of interest and CV from eligible experts and maintain a roster of selected experts. The potential candidates have to apply for the position by submitting an expression of interest and CV. A three members HVAP review committee headed by the HVAP Manager will review the application received from the applicants. The PMU will identify suitable experts from the roster and form Business Plan Assessment Panel(s) as and when required.

The HVAP will form the panel by appointing experts with highest rank of specified disciplines from the roster. The panel will be chaired by the business expert. There may one or more panel at a time as necessary depending on the volume of business plans to be assessed.

The panel members are primarily responsible for all aspects of the assessment of the business plans. Panel members must have a variety of backgrounds and expertise to get a balanced and comprehensive assessment on the criteria. The composition of the panel will be as follows:

.. pPage 29 of 49

- Private Sector Representative (business expert) - 1

- Business finance Expert -1

- Agriculture or Livestock or Agro- Forestry Expert – 1 (as per nature of co-

investment)

- Impact Perspective Expert – 1

Process of selecting business plan assessment panel members

The following process will be applied in selecting suitable external experts:

1. Preparation of TOR 2. Setting evaluation criteria 3. Call for expression of interest 4. Receipt of EOI and CV 5. Formation of review committee 6. Ranking of EOI and CV 7. Preparation of roster of experts 8. Formation of BPAP 9. Notification to selected experts

Responsibilities of BPAP

Review the business plan and evaluate them according to pre-set criteria.

Recommend to PMU for approval of business plans securing at list 60% of the total score.

If the independent BPAP considers the business plan meeting minimum criteria but need some adjustments, can recommend to HVAP for approval after adjustment as required.

Assessment Criteria

Criteria for the evaluation of the business plans as defined in the Value Chain Fund Guidelines will be provided to the BPAP for evaluation, based on which the panel has to evaluate.

Deliverables

The business plan assessment panel will provide (1) score sheet completely filled by individual members (2) compiled score sheet by panel (3) recommendations with justifications (a) for approval, (b) to reject, and (c) for

resubmission with adjustments. Remuneration

Panel members will be paid remuneration, travel cost, DSA as per HVAP norms.

.. pPage 30 of 49

Qualifications of Business Plan Assessment Panel Members

- Academic Qualification o Master in Business Administration/Management, Agri. Business

management, for Private Sector Representative (for Business Expert) o Master in Business Administration or Management or Agricultural Economics

or Finance or Agricultural Finance (for Business Finance Expert) o MSc in Agriculture (preferably in Horticulture) for Agriculture Expert, MSc in

Animal/Veterinary Science for Livestock Expert, MSc in Agro-Forestry/Forestry for Agro-Forestry Expert

o Master in Sociology or Gender and Social Inclusion or Rural Development for Social Impact Perspective Expert

- Work experience: o Minimum of five years’ experience in relevant field (The Business Experts and

Business Finance Expert should having experience in private sector would be additional advantage).

o Experience in assessing of business plans/investment proposals in their respective areas (commercial, technical, managerial and financial capacity, and social impact).

.. pPage 31 of 49

Annex E: Grant Agreement (for window 1)

GRANT AGREEMENT for Value Chain Fund

(Grant Agreement No. ...........................)

A. Introduction This Grant Agreement has been signed on .............................. between The High Value

Agriculture Project in Hill and Mountain Areas (hereinafter referred to as “HVAP”), and

......................................................................................... (hereinafter referred to as

“Grant Recipient”). As per this Agreement, HVAP will make available a matching grant fund

to the Grant Recipient under Project Value Chain Fund to finance Sub-Project

No.................................................: for .................................................................... (sub-

project name) at ....................................................... on the conditions specified in following

articles.

B. Effectiveness of this Agreement

This Agreement will be effective during the period mentioned below:

Agreement Commencement Date:

........................

Agreement Completion Date: ....................

C. Matching Fund Contribution

The total fund approved for this Sub-Project is Rs. .................................. (in words Rupees

..................................................................................................). The breakdown of

matching fund contribution by HVAP and Grant Recipient will be as below:

Sub-Project Cost contribution

Contribution from Contribution Amount in Rs.

Percentage

Contribution Amount in Words

HVAP Grant Not to exceed Rupees ................................................... only.

Grant Recipient Rupees ..................................................... only.

Detail budget breakdown by activities has been given in Table 1 – Grant Application Cost

Table.

D. Sub-Project Purpose

.. pPage 32 of 49

E. Implementation Arrangement

1. The Grant Recipient shall arrange financial resources and implement the sub-project as per the timeframe as specified in approved business plan and the Implementation Milestones.

2. The Grant Recipient shall fully coordinate the construction of civil works and installation of equipments with Project Engineer assigned by HVAP and changes are to be made (if needed) as advised by the Engineer.

3. The Grant recipient shall follow the proper procurement process for all the procurement of goods and services and civil works and maintain minutes of procurement process. All the civil works and procurement of services should be supported with proper agreement with service providers.

4. Procurement above threshold limit of Rs. 5000 shall be supported with VAT invoice. 5. All the payments above the threshold limit of Rs. 5,000 should be made by check

except in the exceptional circumstances where there is practical difficulties in making the payment by check, in such case a written justification should be attached with the payment voucher.

6. The Grant Recipient shall maintain a separate account for this sub-project and properly maintain all books of accounts and supporting documentations showing the utilization of funds, complying fully with Nepal Accounting Standard (NAS), and all other documentations and records related to the sub-project.

7. All books of accounts and supporting documents shall be kept during the sub-project period and at least for a period of ten years following the completion of the sub-project, during which period, HVAP or a person designated by Government of Nepal, shall have the right to review and examine the relevant records.

8. The Grant Recipient shall submit audited financial report and tax clearance certificate within four months after completion of each Nepalese financial year during the period of sub-project implementation through the grant fund.

9. HVAP will reimburse the grant fund as per actual cost incurred following the mode of payment under article I.

10. The Grant Recipient shall ensure proper custody and use of all the cash and non-cash resources like machineries/equipments, tools and facilities created by Sub-Project investment.

11. The Grant Recipient shall prepare a public notice board (hording board) and put at the visible sub project site showing duration, sources and uses of fund and other important sub-project information.

F. Right and Responsibilities 1. In carrying-out/performing the sub-project activities, the Grant Recipient and the

personnel employed by the Grant Recipient will: i) Exercise the degree of skill, care, and diligence reasonably expected by HVAP

and in accordance with the agreed Sub-Project implementation schedule. ii) Comply with all provisions of all statutes, regulations and rules of

Government of Nepal, local bodies or public authorities and any professional codes of conduct or practice that may be applicable to the Sub-Project.

iii) Observe the HVAP reasonable directives in relation to the Sub-Project.

.. pPage 33 of 49

iv) Comply with reasonable directives from HVAP or its representatives to support achieve the objectives of Project gender and social inclusion strategy.

v) Be reasonably available for consultation with the HVAP or its representative during the terms of this agreement on the conduct and progress of the Sub-Project.

vi) Assist HVAP authorised personnel to verify field and factory activities and collect project monitoring data.

2. HVAP or its representatives and the consultants or service providers assigned by HVAP shall have the right to monitor the Sub-Project activities and provide feedback for further improvement.

3. The Grant Recipient shall make available employees or agents with knowledge of the project to respond to questions from HVAP or the designated representative of the Government of Nepal.

4. The Grant Recipient will give access to HVAP or its representative as well as any service providers/consultants hired by the Project to the premises or the sites at which the Sub-Project is being carried out to inspect the progress of the Sub-Project and the equipments, services and goods acquired following a reasonable notice from HVAP or its representative (at least 1 days prior to the inspection date).

5. The Grant Recipient will ensure the implementation of the Sub-Project under satisfactory performance conditions and make best efforts to achieve the objectives and fulfil all other obligations as detailed in this Agreement.

6. The Grant Recipient will be responsible for proper use of grant fund in accordance with this Agreement as well the VC fund Guidelines in effect. In case the grant fund is, totally or partially, improperly used and declared ineligible, the recipient will be responsible for immediate replenishment of the grant account with the respective amount.

7. The Grant Recipient will promptly notify the HVAP of any significant difficulties encountered or foreseen by the Grant Recipient.

8. If the Sub-Project performance indicates that the Project objectives are not likely to be achieved, are superseded, or may be achieved by another preferred route, the HVAP will give the Grant Recipient written instructions for improvement within specified time frame. The recommendations for improvement shall be addressed by the Grant Recipient within the specified time frame and reported back to HVAP.

G. General Conditions

1. Funds provided by HVAP under this agreement are to be used by the Grant Recipient exclusively in support of this sub-project.

2. The Grant Recipient is not allowed for budget transfer between the budget lines of more than 5% of approved budget limit in each budget line without advance approval from HVAP. In no circumstance the total budget limit can be exceeded without written amendment to this grant agreement.

3. If, after the completion of the sub-project, there are unspent funds under this Agreement, the Grant Recipient shall return such unspent funds to HVAP.

.. pPage 34 of 49

4. The personnel assigned by the Grant Recipient and the implementing partner for the operations and management of the Sub-Project shall not be considered as staff members of HVAP and shall not be entitled to any privilege, immunity, compensation or reimbursement by HVAP.

5. HVAP will not be held responsible for any accident, illness, loss or damage, which may occur during the implementation of Sub-Project.

6. The use of the official emblem and name of HVAP on any publication, document or paper prepared for publicly dissemination is prohibited without prior written approval from HVAP.

7. Neither the Grant Recipient nor their personnel shall communicate to any other person or entity any confidential information made known to them by HVAP in the course of the performance of their obligations under the terms of this Agreement nor shall they use this information to private or company advantage. This provision shall continue to exist even after the expiration or termination of this Agreement.

8. Neither the Grant recipient nor its personnel shall be allowed to incur any commitment or expense on behalf of HVAP.

9. The Grant Agreement shall be governed by the prevailing law, rules and regulations of Government of Nepal.

10. Leasing/renting out of sub-project properties to other parties is not allowed. 11. Procurement of second-hand equipment is not allowed.

H. Termination of Agreement

1. The Agreement will continue to exist until the date specified in Article B of this agreement unless terminated earlier in following conditions.

2. HVAP shall have the right to terminate this Agreement, by giving written notice of 30 days to Grant Recipient, if it considers that the continued implementation of the Agreement is impossible or impractical because of

i. unforeseen causes beyond the control or HVAP, or ii. in the event of a default or delay on the part of the Grant

Recipient. 3. Similarly, if the Grant Recipient considers that it cannot continue the

implementation of Sub-Project because of unforeseen cause beyond its control, the Grant Recipient shall submit a written request in advance of 30 days to HVAP to terminate the Agreement. In such case HVAP can terminate the agreement, if it finds the request is reasonable.

4. In the event of the termination of Grant Agreement because of the Grant Recipient's non-compliance or partial compliance with the terms of this Agreement, it will refund to HVAP any payment already received in respect of activities that have not been performed by the Grant Recipient to a standard considered acceptable to HVAP.

5. In the event of termination by HVAP for unforeseen causes beyond its control, HVAP shall complete all eligible payments, which may be due up to the effective date of termination.

I. Extension of Agreement

.. pPage 35 of 49

1. If delays in the implementation of Sub-Project activities are likely because of unforeseen causes beyond the control of the Grant Recipient, the Grant Recipient may request, in well advance, for time extension with full justification.

2. HVAP shall have the right to extend the duration of this agreement if it considers that the justification given by the Grant Recipient is valid and the likely delays cannot be avoided.

J. Reporting Arrangement 1. The Grant recipient shall submit implementation progress reports as per following

schedule: a. Trimestral Progress Reports – by end of each trimestrer (Kartik, Falgune,

Ashad). b. Annual Progress Reports – by end of each Nepalese Fiscal year (Ashad). c. Implementation progress report – to be included with each grant instalment

request. d. Sub Project Completion Report – Within 1 months of final completion of sub-

project activities. 2. In all the reports as scheduled above, the Grants recipient shall include all the

activities completed as of reporting date, financial statement (including sources and uses of fund) and social and economic outcome/impact of sub-project along with the data, model, diagrams, photographs and other related documents aligned with sub-project implementation schedule.

K. Mode of Payment

1. HVAP will reimburse the Grant fund as per following schedule. The number of instalment can be increased or decreased, depending on the progress in implementation milestone.

Payment Schedule

Reimbursement amount

Performance indicator

1st instalment

Max. of 30% of total grant fund

Grant Agreement signed.

Other instalments

Max. of ......... % of total grant fund

Based on implementation milestones

Final instalment

Remaining balance of grant money

Completion of all sub project activities and submission of final report.

2. Implementation of the payment schedule will depend on the: a. Satisfactory performance as per sub-project implementation milestones. b. Submission of implementation Progress report c. Field verification report by authorised HVAP staff.

L. Settlement of Disputes

.. pPage 36 of 49

Any dispute between HVAP and the Grant Recipient arising out of the interpretation or

execution of this Agreement shall be settled by mutual understanding. If HVAP and the Grant

Recipient are unable to reach agreement on any question in dispute or on a mode of

settlement other than arbitration, either party shall have the right to request arbitration in

accordance with the existing rule of Government of Nepal. HVAP and the Grant Recipient

agree to be bound by any arbitration award rendered in accordance with the above, as the

final adjudication of any such dispute.

M. Force Majeure

Neither the Grant recipient nor the HVAP will be responsible to the other party for delay or

failure in performance of any of the obligations imposed by this Agreement when such failure

is occasioned by unforeseen disasters, natural calamities, civil unrest like riot, war, strikes,

labor disturbance, court order or Government interference, natural genetic variations of any

living matters or by clause of like or unlike nature beyond the reasonable control and without

the fault or negligence of either of the Grant Recipient or the HVAP.

N. Amendments

Any amendments to this Agreement shall be effected only on the basis of written mutual

consent by both the Parties.

Signed on behalf of the High Value Agriculture Project in Hill and Mountain Areas:

Signature:..............................................................

Name: ............................................................

Project Manager, HVAP

Signed on behalf of Grant recipient

Signature:……………………………..

Name: ....................................... Designation:..................................

Organisation: ......................................................................................................

Witnesses:

1. Name .......................................................... Signature

..............................................................

Address:

............................................................................................................................. .......

.. pPage 37 of 49

2. Name ............................................. Signature ...........................................................

Address:

............................................................................................................................. .......

-----------------------------------------------------------------------------------------------------------------------

Contact Address of Grant Recipient:

.....................................................................................................................

Telephone No. ..................................

Fax: ...................................................

E-mail: ...................................................

-----------------------------------------------------------------------------------------------------------------------

Detailed Banking instructions of Grant Recipient:

Account name: .................................................... Account number: .......................

Bank address:

............................................................................................................. ................

.. pPage 38 of 49

Annex F: Grant Agreement (for window 2: Nepali version)

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.. pPage 39 of 49

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v'nfO n]vf clen]v /fVg] .

-r_ a"+bf g+= -3_ / -ª_ cg';f/ ug{ g;lsg] cj:yf b]lvPdf plrt sf/0f ;lxt cfof]hgfdf hfgsf/L u/fO

cfof]hgfsf] k"j{ :jLs[lt lnO{ cfof]hgfsf] lgb]{zg cg'?k ug]{ .

-5_ sfo{qmd ;+rfngsf] nflu vl/b ul/Psf jf h'6fOPsf ;fdu|L tyf cf}hf/x? nufot gub /sd tyf sfo{qmd

cGtu{t lgdf{0f ePsf k"jf{wf/x? -h:t}M l;rfOsf ;'ljwf, ;+sng s]Gb|, e08f/0f u[x, uf]7 cflb_ sf] plrt

pkof]u, dd{t ;Def/ tyf ;'/Iffsf]] Joj:yf ldnfpg] .

-h_ sfo{qmd ;+rfng ug{ cfjZos k|fljlws tyf ahf/Ls/0f af/] ;Nnfx tyf ;xof]u k|fKt ug{ cfof]hgf

Joj:yfkg sfof{no jf ;DalGwt s[lif ljsf; sfof{no, kz' ;]jf sfof{no, jg sfof{no jf lhNnf pBf]u

afl0fHo ;+3 ;+u ;dGjo ug]{ .

-em_ cfof]hgf Joj:yfkg sfof{noaf6 k|fKt lgb]{zg cg'?k ;'wf/ ug'{ kg]{ s'/fx? ;'wf/ u/L sfo{sd ;DkGg ug]{ .

-~f_ s'g} klg sf/0faf6 pk cfof]hgfsf] sfo{qmd sfofGjog ug{ sl7gfO kg{], l9nf] x'g] jf cGo jfwf c8rg

cfPdf t'?Gt cfof]hgfdf lnlvt ;"rgf ug]{ / cfof]hgfsf] lgb]{zg cg'?k sfo{qmd ;+rfng ug]{ .

-6_ of] ;Demf}tf cGt/ut sfof{Gjog ul/g] pk–cfof]hgfsf] k|of]hgsf] nflu 5'§} a}+s vftf vf]Ng] tyf pk

cfof]hgfsf] 5'§} n]vf /fVg] .

-7_ sfo{qmd cGt/ut ul/Psf lqmofsnfkx?, nfu]sf] vr{, pTkfbg kl/df0f, laqmL kl/df0f, laqmL ul/Psf]

:yfg÷ahf/÷Jofkf/L, laqmL d"No tyf cfDbfgLsf] clen]v tyf lx;fj /fVg] .

-8_ sfo{qmddf ePsf] vr{sf] ljn ekf{O tyf lx;fj /fVg] / cfof]hgfn] dfu]sf] avt ljn ekf{O tyf lx;fj

lstfj b]vfpg] . pQm ljn ekf{O tyf lx;fj pk cfof]hgf cjlwe/ tyf pk cfof]hgf cjlw ;lsPsf]

slDtdf # jif{ ;Dd /fVg] .

-9_ ;xsf/Lsf] xsdf k|To]s cfly{s jif{ ;dfKt ePsf] $ dlxgf leq ;xsf/Lsf] n]vf kl/If0f u/fO n]vf kl/If0f

k|ltj]bg tyf s/ r'Stf k|df0fkq cfof]hgf Joj:yfkg sfof{nodf k]z ug]{ .

-0f_ cfGtl/s cg'udgsf]nflu ;d"x÷;xsf/Lsf ;b:ox?af6 cg'udg ;ldlt u7g u/L cfof]hgfsf] cg'udg tyf

d"Nof+sg sfo{of]hgf cg'?k cfGtl/s cg'udg sfo{ ;DkGg ug]{ u/fpg] . sfo{s|d nfu' x'g' k"a{ / k|To]s

aif{sf] cGtdf ;xefuLtfTds cg'udg tyf d'Nof+sg cf}hf/sf] k|of]u ul/ cfkmgf] ;d'x÷;xsf/Lsf] d'Nof+sg

ug]{ .

-t_ sfo{qmd cg'udgsf] nflu cfof]hgf Joa:yfkg sfof{no, ;DalGwt lhNnf l:yt ;/sf/L lgsfo / ;fem]bf/

u}=;=;= af6 v6L cfpg] sd{rf/Lx?nfO{ ;xof]u pknJw u/fpg] .

-y_ sfo{qmd sfof{Gojogsf] qmdsf g]kfn ;/sf/ tyf :yfgLo ;fj{hlgs lgsfox?sf gLlt, lgod tyf

k|lqmofx?sf] pn+3g gx'g] u/L sfo{qmd ;++rfng ug]{ .

-b_ sfo{qmd sfof{Gjogsf] qmddf cfof]hgfsf] n+}lus tyf ;fdflhs ;dfj]lzs/0f gLlt sf] kfngf ug]{ . ;Dej

eP ;Dd a9L eGbf a9L ljkGg kl/jf/, dlxnf, hghftL tyf blnt ;d'bfosf] ;+nUgtf x'g] ul/ sfo{qmd

;+rfng ug]{ .

-w_ cfof]hgf ;+u ;dGjo ul/ pk cfof]hgf sfof{Gjog If]qdf ;fj{hlgs ;"rgf kf6L /fVg] .

.. pPage 40 of 49

$= cg'bfg ;xof]u e'QmfgL k|lqmof

cfof]hgf af6 cg'bfg /sd tn pNn]lvt ls:tfdf pknJw u/fOg] 5 . cg'bfg /sd ;d"x÷;xsf/Lsf gfddf

Psfp06 k]oL r]s jf ;d"x ;xsf/Lsf] a}+s Psfp06df ;f]em} hDdf x'g] ul/ e'QmfgL lbOg]5 .

ls:tf /sd ?= k|ltzt

-s'n cg'bfg /sdsf]_

e'QmfgL cj:yf

k|yd a9Ldf #) k|ltzt

;Dd

cg'bfg ;+emf}tfdf x:tfIf/ tyf

pk cfof]hgfsf] a}+s vftf vf]nL

;d"x÷;xsf/Laf6 Joxf]g'{ kg]{ s"n gub /sdsf]

#) k|ltzt hDdf eP kl5 .

bf]>f] a9Ldf %) k|ltzt

;Dd

k|utL k|ltj]bg k]z ug]{

cfo Joosf] lx;fj k]z ug]{

cfufdL ;dosf] nfuL sfo{qmd tyf ah]6 k]z

ug]{

cfof]hgfsf] tkm{af6 :ynut lg/LIf0f k|ltj]bg

cGtLd cg'bfg sf] af+sL /sd pk cfof]hgf sfo{qmd ;DkGg k|ltj]bg

cfo Joosf] lx;fj

cfof]hgfsf] tkm{af6 pk cfof]hgfsf] k|ls|ofut

/ k|ltkmn cg'udg

cfof]hgfsf] tkm{af6 pk cfof]hgf sfo{qmd

;DkGg k|dfl0fs/0f

%= sfo{qmd k|ult k|ltj]bg

-s_ ;d"x÷;xsf/Ln] cfof]hgfn] pknAw u/fPsf] lglb{i6 kmd]{6df lgDg tflnsf cg';f/ cfof]hgf Joj:yfkg

sfof{nodf k|ult k|ltj]bg k]z ug'{ kg{]5 .

-!_ rf}dfl;s k|ult k|ltj]bg –k|To]s jif{sf] d+lz/, r}q tyf >fj0f dlxgf sf] klxnf] xKtf leq .

-@_ jflif{s k|ult k|ltj]bg –k|To]s jif{ cfly{s jif{ ;dfKt ePsf] @) lbg leq .

-#_ clGtd k|ltj]bg –pk–cfof]hgf cGt/ut ;Dk"0f{ s[ofsnfkx? ;DkGg eO ;s]kl5 a9Ldf

! dlxgf leq .

-v_ ;d"x÷;xsf/Ln] k|ult k|ltj]bgdf xfn ;Dd ePsf lqmofsnfk tyf pknJwLx? / ;f]sf] nflu nfu]sf] vr{sf]

ljj/0fsf] ;fy} cfufdL ls:tfsf] nflu sfo{qmd tyf ah]6 ;d]t cfof]hgf Joj:yfkg sfof{no tyf ;fem]bf/

u}=;=;=df ;d]t k]z ug'{ kg]{5 . ;f] k|ult k|ltj]bg tyf cfufdL ls:tfsf] sfo{qmd tyf ah]6 cfof]hgfaf6

:jLs[t eP kl5 dfq dfu ePsf] ls:tfsf] /sd e'QmfgL lbOg]5 .

^= cGo k|fjwfgx?

-s_ of] ;+emf}tf kqdf pNn]v eP afx]s cfof]hgfaf6 ;f]xL sfo{qmdsf] nflu yk cfly{s ;xof]u pknJw x'g] 5}g .

-v_ cfof]hgfaf6 pknJw u/fOPsf] cg'bfg /sd :jLs[t sfo{qmd jfx]s cGo k|of]hgsf nflu vr{ ug{ kfOg] 5}g .

cGo k|of]hgdf vr{ ePsf] jf cg'bfg /sdsf] lxgfldgf ePsf] kfOPdf ;d"x∕;xsf/Ln] t"?Gt To;sf] Ifltk"lt{

Joxf]g'{ kg]5 .

.. pPage 41 of 49

-u_ sfo{qmd sfof{Gjogsf] lznzLnfdf Joj:yf ul/Psf] dfgj ;+;fwg, vl/b ul/Psf jf h'6fOPsf ;fdu|L, cf}hf/,

k"jf{wf/ ;"ljwfx? tyf jfnL gfnL, kz' j:t'sf] ;"/Iffsf] ;Dk"0f{ bfloTj ;d"x∕;xsf/Lsf] x'g]5 . sg} klg

sf/0fn] pk/f]qm s'/fx?sf] xfgL gf]S;fgL ePdf cfof]hgfaf6 Ifltk"lt{ pknJw u/fOg] 5}g .

-3_ sfof{qmd sfof{Gjog ;DkGg eO;s]kl5 cfof]hgf jf6 pknJw u/fOPsf] cg'bfg /sd a+fsL /xg uPdf ;f]

af+sL /x]sf] /sd cfof]hgfnfO{ kmsf{pg' kg]{5 .

-ª_ cg'bfgsf] /sdaf6 ;b:ox?nfO{ l/0f lbg kfOg] 5}g .

-r_ cg'bfg /sdaf6 k'/fgf] -;]s]G8 X\of08_ cf}hf/, pks/0f vl/b ug{ kfOg] 5}g .

&= cg'bfg ;+emf}tfsf] ;dfKtL

-s_ cfof]hgfaf6 pk cfof]hgf cg'udg ubf{ pk cfof]hgf sfo{qmd sfof{Gjog ;Gtf]ifhgs eO{/x]sf] 5}g jf

cg'bfg /sdsf] pkof]u :jLs[t sfo{qmd cg';f/ ePsf] 5}g elg 7x/ u/]df s'g} klg ;dodf slDtdf !%

lbgsf] ;"rgf lbO of] ;+emf}tf /2 ug{ ;lsg]5 .

-v_ ;d"x÷;xsf/Lsf] tkm{af6 cfkm\gf] sfa' eGbf jflx/sf] sf/0f hgfO{ sfo{qmd sfof{Gjog ug{ g;Sg] elg

slDtdf !% lbgsf] ;"rgf lbO{ ;+emf}tf /2 ug{ lnlvt lgj]bg lbPdf / ;f] sf/0f cfof]hgfnfO{ pko'Qm xf] eGg]

nfu]df cfof]hgfaf6 of] ;+emf}tf /2 ug{ ;lsg]5 .

-v_ s'g} klg cj:yfdf ;+emf}tf /2 ePsf] v08df ;d"x ;xsf/L ;+u sfo{qmddf vr{ eO ;s]sf] jfx]s cg'bfg

/sd af+sL /x]df ;f] /sd cfof]hgfdf kmsf{pg' kg]{5 . To:t} ;d"x÷;xsf/Lsf] tkm{jf6 :jLs[t lqmofsnfkdf

/sd vr{ eO{ ;s]sf] / ;f] /sd cfof]hgfaf6 e'QmfgL k|fKt eO ;s]sf] cg'bfg ls:tfsf] /sdn] wfGg] eGbf

a9L ePsf] eP To:tf] /sd cfjZos ljn ekf{O ;lxt cfof]hgf ;+u dfu ug{ ;Sg]5g . To:tf] dfu pk/

5fgjLg u/L e'QmfgL lbg plrt 5 elg cfof]hgfaf6 7x/ ePdf To:tf] a9L /sd -s"n :jLs[t cg'bfg

/sddf ga9g] u/L_ cfof]hgfn] e'QmfgL lbg]5 .

*= cg'bfg ;+emf}tfsf] ;dofjlw yk ug{ ;lsg] k|fjwfg

;d"x÷;xsf/Lsf] sfa' eGbf jflx/sf] kl/l:yltaf6 ;dodf sfo{qmd ;DkGg ug{ g;lsg] tyf ;f] sf] nflu yk ;do

rflxg] ePdf ;d"x÷;xsf/Ln] plrt sf/0f b]vfO sDtLdf ;+emf}tfsf] Dofb ;lsg' eGbf !% lbg cufj} Dofb yksf]

nflu cfof]hgfdf lnlvt k|:tfj lbg ;Sg]5g . To:tf] cj:yfdf olb sfo{qmdsf] Dofb yk ug{ s'g} k|fljlws tyf

lalQo sf/0fn] ;d:of kg]{ b]lvPsf] cj:yfdf jfx]s cfof]hgfn] Dofb yksf] k|:tfjdf :jLs[tL lbg ;Sg]5 .

(= ;+emf}tf kqdf km]/abn

of] ;+emf}tf kqdf ePsf s'g} a"+bfdf km]/ abn jf yk36 ug'{ k/]df b'j} kIfsf] lnlvt ;xdltdf dfq km]/abn ug{ ;lsg]

5 .

pRr d"No s[lif j:t' ljsf; cfof]hgfsf] tkm{jf6 b:tvt ug]{

x:tfIf/ ============================================= gfd ==================================================

kb========================================================

cfof]hgfsf] 5fk

;d"x÷;xsf/Lsf] tkm{af6 b:tvt ug]{

x:tfIf/ ============================================= gfd ==================================================

kb========================================================

;d"x÷;xsf/Lsf] 5fk

;fIfLsf] tkm{af6 b:tvt ug{]

.. pPage 42 of 49

!= x:tfIf/ ============================================= gfd ================================================

kb=====================================================

7]ufgf

======================================================================================================================================================================

@= x:tfIf/ ============================================= gfd ================================================

kb====================================================

7]ufgf

======================================================================================================================================================================

_________________________________________________________________________________

bfg k|fKt ug]{ ;d"x÷;xsf/Lsf] a}{s Psfp06 ljj/0f

a}+ssf] gfd :…………………………………========================== Psfp06 g+=

………………..

________________________________________________________________________________

b|i6JoM of] ;+emf}tfdf pNn]v ePsf jfx]s cGo s'/fx? g]kfn ;/sf/sf] k|rlnt gLlt, lgod tyf sfg'g cg'?k x'g]5g

.

.. pPage 43 of 49

Annex G: Sub-project Completion Report Format (Window 2: Nepali version)

pk cfof]hgf sfo{ ;DkGg k|ltj]bg

d"No >[+vnf ====================================

k|ltj]bg k]z ul/Psf] ldltM =========================

!= pk cfof]hgfsf] gfdM

========================================================================================================

@= pk cfof]hgf sfof{Gjog cjlwM ldlt ============================== b]lv =====================================

;Dd

#= ;d"x ÷ ;xsf/Lsf] gfd, 7]ufgfM

=========================================================================================

=$= pk cfof]hgf sfo{s|dn] ;d]6]sf] sfo{ If]q

g=kf=÷Uff= lj= ;=sf] gfd j8f gDa/x? ufp÷6f]nsf] gfd

%= pk cfof]hgf sfo{qmdn] ;d]6]sf nfeu|fxL ljj/0f

sfo{s|ddf ;dfj]z ePsf hDdf 3/w'/L

Hfft÷hflt Dlxnf k'?if hDdf

blnt

hghflt

cGo

hDdf

^= sf]if k|fKtL tyf vr{ ljj/0f

sf]ifsf] >f]t :jLs[t ah]6

-?_

Xfn ;Ddsf]

k|fKt -?_

Xfn ;Ddsf]

vr{ -?_

cfufdL ls:tfsf] nflu

dfu ul/Psf] /sd -?_

s}lkmot

cfof]hgfaf6

;+:yfsf] tkm{af6 -gub

of]ubfg_

;+:yfsf] tkm{af6

->dbfg _

hDdf

.. pPage 44 of 49

=&= :jLs[t lqmofsnfkx?sf] nIo tyf tyf k|ult

s|=

;+=

s[ofsnfk

nIo -Joj;foL]s of]hgf

cg';f/_

k|ult s|}lkmot

kl/df0f :jLs[t ah]6 ?= kl/df0f vr{ ?=

hDdf

gf]6M ;+/rgf lgdf{0f sfo{ eP OGhLlgo/ jf6 lgdf{0f ;DkGg k|ltj]bg ;dfj]; ug'{ kg]{5 .

.. pPage 45 of 49

*= Joj;foLs of]hgf cg';f/sf] pTkfbg tyf cfDbfgLsf] nIo tyf k|ult

nIo k|ult s|}lkmot

jfnL nufPsf] If]qkmn

pTkfbg -jflif{s_

cf}ift 3/w'/L v'b

cfDbfgL ? -jflif{s_

(= ;x nufgL sfo{qmdaf6 k|fKt ePsf cGo pknJwLx? -;sf/fTds kl/jt{g_

Nffeu|fxL s[ifsx?sf] k|fljlws tyf Joj;foLs Ifdtf ljsf;

============================================================================================================================= ==========

========================================================================================================================= ==========================

============================================================================================================================= ======================

pGgt s[lif k|ljlw, /f]u ls/fsf] lgoGq0f ljlw, pGgt kf]i6 xfe]{i6 k|ljlwsf] cjnDag

============================================================================================================================= ==========

========================================================================================================================= ==========================

============================================================================================================================= ======================

pTkfbsTj j[l4

=======================================================================================================================================

============================================================================================================================= ======================

===================================================================================================================================================

============================================================================================================================= ======================

pTkfbgsf] u'0f:t/

============================================================================================================================= ==========

===================================================================================================================================================

============================================================================================================================= ======================

===================================================================================================================================================

.. pPage 46 of 49

d"No clej[l4

============================================================================================================================= ==========

===================================================================================================================================================

============================================================================================================================= ======================

============================================================================================================================= ===================

ahf/sf] kx'+r tyf a:t'sf] d"No lgwf{/0fdf s[ifsx?sf] ;+nUgtf

=======================================================================================================================================

============================================================================================================================= ======================

===================================================================================================================================================

===================================================================================================================================================

cGo

============================================================================================================================= ==========

===================================================================================================================================================

============================================================================================================================= ======================

===================================================================================================================================================

!)= Joj;foLs of]hgfsf] nIo k|fKtLsf nfuL b]lvPsf r'gf}tLx?, ;dfwfgsf] nflu ul/Psf pkfox?,

eljiosf] sfo{ of]hfgf

=======================================================================================================================================

============================================================================================================================= ======================

===================================================================================================================================================

===================================================================================================================================================

!!= pTkfbgsf] jhf/Ls/0f Joj:yf, ahf/Ls/0fsf r'gf}tLx? / ;dfwfgsf pkfox?

============================================================================================================================= ==========

===================================================================================================================================================

===================================================================================================================================================

============================================================================================================================= ======================

.. pPage 47 of 49

.. pPage 48 of 49

!@= pk cfof]hgf sfo{qmddf ;+nUg x'g] ;b:ox?sf] pTkfbg, nufgL, laqmL tyf cfDbfgL ljj/0f

jif{ @)=======÷ =======

s|=;+= ;b:osf] gfd afnL÷j:t'

jfnL

nufPsf]

If]qkmn -jf

kflnPsf]

afv|f

;+Vof_

pTkfbg

vr{

-?_

pTkfbg

kl/df0f

-s]hL_

laqmL

kl/df0f

-s]hL_

ljls| d'No

cf}ift

k|lt{ s]hL

ljqmL af6

hDdf

cfDbfgL

-?_

vr{ s6fP/

gfkmf -?=_

s}lkmot

hDdf

49

!#= pk cfof]hgf sfof{Gjog jf6 ePsf] l;sfO{ / sfo{qmdsf] lbuf]kgfsf] nfuL ;'emfj

k|ltj]bg k]z ug]{sf] gfdM kb ;+:yfsf] gfd

x:tfIf/ ==================================== ;:yfsf] 5fkM

++++++++++++++++++++++++++++++++============================================================================================= =================================================================

cfof]hgf Joj:yfkg sfof{no k|of]hgsf] nfluM

d"No >+[vnf l6dsf] tkm{af6 l6Kk0fL, /fo, ;'emfjM

cg'bfgsf] cGtLd ls:tfsf] nflu l;kmfl/; ?=============================================

x:tfIf/ ================================================= -d"No >+[vnf l6dsf] tkm{af6_

Gffd ===========================================

kb ==============================================

ldlt

d"No >+[vnf Joj:yfkg ;ldltsf] tkm{af6 l6Kk0fL / l;kmfl/; M

x:tfIf/ ================================================= -d"No >+[vnf Joj:yfkg ;ldltsf] tkm{af6_

Gffd ===========================================

kb ==============================================

ldlt

:jLs[t ug]{

===================

cfof]hgf k|d'v ldltM =======================================