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GREEN PROSPERITY PROJECT ANNOUNCEMENT CALL FOR CONCEPT NOTES FOR COMMUNITY-BASED NATURAL RESOURCES MANAGEMENT (CBNRM) GRANT PROGRAM
GREEN PROSPERITY PROJECTANNOUNCEMENT CALL FOR CONCEPT NOTES FOR COMMUNITY-BASED NATURALRESOURCES MANAGEMENT (CBNRM)GRANT PROGRAM
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ANNOUNCEMENT
Call for Concept Notes for Community Based NaturalResources Management Grant Program
I. Introduction
In November 2011, the Government of the United States, through the Millennium Challenge Corporation (MCC), entered into an agreement with the Government of Indonesia (GOI) aimed at reducing poverty in Indonesia through economic growth (the Compact). In particular, the Compact supports GOI’s development objectives in the areas of procurement modernization, health and nutrition improvement and sustainable natural resource management through three projects: the Procurement Modernization Project, the Community-Based Nutrition to Prevent Stunting Project, and the Green Prosperity (GP) Project. The GOI established Millennium Challenge Account Indonesia (MCA-Indonesia) to manage and implement the Compact and its three projects on behalf of the GOI. The Compact came into force on April 2, 2013 and its five-year term will conclude on April 1, 2018.
The GP Project, the largest of the three Compact projects, aims to promote environmentally sustainable, low carbon economic growth as set forth in the Government of Indonesia’s medium- to long-term development plans (RPJP and RPJM), the National Greenhouse Gas Emission Reduction Action Plan (RAN-GRK), and Regional Spatial Plans (RTRW). The GP Project supports some of Indonesia’s most critical development priorities, including increasing access to clean and reliable energy and improving the stewardship of natural assets. As detailed in the Compact, the GP Project has two specific objectives:• to increase productivity and reduce reliance on fossil fuels by expanding renewable energy,
and; • to increase productivity and reduce land-based greenhouse gas emissions by improving land
use practices and management of natural resources.
It is important to note that the Compact document states that the GP Project will support initiatives that will augment potential for economic activity that generates high revenue for businesses and communities, but at the same time, reducing greenhouse gas emissions (low carbon impact). Figure-1 outlines the GP Project’s Problem Tree that will be addressed throughout the implementation of the GP Project Activities. The GP Project, therefore, is expected to reduce poverty, conserve the environment and create sustainable economic growth. More details on the GP Project objectives and its activities are available at http://gp.mca-indonesia.go.id/about-gp/.
The Green Prosperity Facility (GP Facility) is the centerpiece activity of the GP Project, and is a grant-making facility that will invest in low-carbon development projects in two thematic areas: natural resources management (NRM) and renewable energy (RE). One of the key priorities is to support smaller scale initiatives and investments that improve natural resources management at the community or landscape level while concurrently enhancing local economic development. Hence, MCA-Indonesia is now calling for Concept Notes on Community-Based Natural Resource Management (CBNRM) Grant Program. The CBNRM Grant Program has a particular focus on ensuring that local NGOs, community groups, women organizations, micro-small-and-medium enterprises (MSMEs), and other civil society organizations can participate and benefit from GP Facility’s investment in GP targeted districts. The CBNRM grants are intended to fund smaller scale projects that promote community-based initiatives in forestry, agriculture and o�-grid renewable energy, enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments, and support rural livelihoods and economic development. When applicable, the CBNRM Grant Program is intended to fund
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1: G
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Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
1 Some DRA report are available on the GP portal at: http://gp.mca-indonesia.go.idt
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
Problem statement
Goal
Objectives
Outcomes related to Window-2, the CBNRM Grant Program
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
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Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
9
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
1 According to Act No. 20 on Micro, Small and Medium Enterprises: (1) Micro Enterprise: an enterprise owned byindividual or legal entity which has net worth up to IDR 50 million (land and building are excluded) and an annualturnover up to IDR 300 million; (2) Small Enterprise: A single enterprise (not part or branch of other enterprise)owned by individual or legal entity which has net worth between IDR 50 million up to IDR 500 million, and annualturnover between IDR 300 million up to IDR 2.5 Billion.; (3) Medium Enterprise: A single enterprise (not part orbranch of other enterprise) owned by individual or legal entity which has net worth between IDR 500 million upto IDR 10 Billion, and annual turnover between IDR 2.5 Billion up to IDR 50 Billion.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
Interested organizations should submit a Concept Note in accordance with detailed instructions as set forth in this Call for Concept Notes using the template provided in Annexes 1-2. The Concept Note must outline a clear program logic and technical approach, and demonstrate the applicant’s ability to meet basic eligibility criteria and technical requirements as detailed in this Call for Concept Notes document. After receipt, screening and appraisal of the Concept Note, MCA-Indonesia may select those potential Organizations that pass the minimum requirements to develop and submit Full Proposals. Only those that respond to this Call for Concept Notes and whose submissions satisfy the minimum requirements shall be considered for invitation to submit a Full Proposal.
The second step will be for the invited Shortlisted Applicants to prepare and submit a more detailed proposal as per requirements and further instructions to be provided by MCA-Indonesia together with the invitation to submit a Full Proposal.
All submissions failing to pass the minimum requirements shall be declined and shall not undergo further review. Written notification will be provided by MCA-Indonesia to those applicants.
The Call for Concept Notes does not represent a commitment of funding by MCA-Indonesia, and the receipt of a Concept Note shall not obligate MCA-Indonesia to provide funding. The potential Applicants submitting a Concept Note shall bear all costs and expenses for the preparation and submission of the Concept Note.
II. Geographic Focus for this Call for Concept Notes
The GP Project has identified and selected 10 Provinces and 24 Districts as potentially eligible for funding by the GP Facility under the CBNRM Grant Program. These provinces and districts were selected based on a range of social, economic, environmental, and institutional indicators, including poverty levels, renewable energy potential, economic growth potential, governance, significant forest cover, and peatlands under threat of degradation or destruction. The districts underwent a District Readiness Assessment (DRA)1, and were required to have government-approved spatial plans in place. They also agreed to make land use information and licensing processes transparent and accessible to MCA-Indonesia, relevant government planning and service agencies, and the general public. These districts have to sign memorandums of understanding (MOUs) with MCA-Indonesia and with the relevant provinces to lay the groundwork for designing and implementing projects that are well coordinated with government activities.
Of the 24 districts selected, 19 have already signed MOUs with MCA-Indonesia and with the relevant provinces. The process for signing MOUs with the remaining 5 districts is ongoing, and given that working in all 24 targeted districts is a priority for the local governments (due in part to anticipated demand for projects), MCA-Indonesia fully expects MOUs to be in place in time
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to support any CBNRM Grant projects selected for funding. The geographic focus for this Call for Concept Notes is shown in Table 1 and Figure 2.Table 1. GP Project Districts – For CBNRM Grant
Province District
1. Jambi (1) Merangin, (2) Muaro Jambi, (3) Kerinci, (4)
TanjungJabungTimur
2. West Sulawesi (5) Mamuju, (6) Mamasa
3. West Nusa Tenggara (7) Lombok Tengah, (8) Lombok Timur, (9) Lombok
Utara
4. East Nusa Tenggara (10) Sumba Timur, (11) Sumba Barat, (12) Sumba
Tengah, (13), Sumba Barat Daya
5. West Sumatra (14) Solok Selatan, (15) Pesisir Selatan
6. South Sulawesi (16) Luwu Utara, (17) Luwu Timur
7. Southeast Sulawesi (18) Kolaka Utara, (19) Kolaka
8. West Kalimantan (20) Kapuas Hulu*, (21) Sintang*
9. East Kalimantan (22) Mahakam Ulu*, (23) Berau*,
10. North Kalimantan (24) Malinau*
* MOUs are in-process
The GP Project supports the use of landscape approaches for project design and implementation. Landscape approaches seek to support tools, concepts and activities for allocating and managing land and ecosystems to achieve inclusive social, economic and environmental objectives in areas where agriculture, forestry, energy sector and other productive land uses compete with environmental and biodiversity goals. Landscapes are commonly defined according to their structure, function and social values. The Landscape Approach has been identified in response to increasing societal concern about environmental and developmental tradeo�s as well as their mutually reinforcing and interdependent characteristics. It is an approach that emphasizes the principles of adaptive management, stakeholder involvement and multiple objectives toward increasing integration of conservation oriented perspectives with poverty alleviation goals and thus is well aligned with the objectives and principles of the GP Project.
Figure 2: CBNRM Grant Program Location in Sumatera, Sulawesi, Lombok, Sumba, and Kalimantan
III. Objectives and Specific Outcomes The CBNRM Grant Program objective is to support initiatives and investments that improve natural resource management at the community or landscape level while also enhancing household and small business productivity and local economic development. It will contribute to achievement of the GP Project’s Objectives and address the GP Project Problem Tree. Whenever possible and practical CBNRM grants will be expected to support and complement larger investments funded under the other GP Facility windows, particularly those in renewable energy. Herewith, Window-2 of the CBNRM Grant Program will address specific problem areas, by supporting specific program interventions that can deliver the specific outcomes of the GP Project as described in the Table-2 and Figure-3 below. Concept Notes and Full Proposals should be developed to address those specific problem areas, with specific program interventions toward specific Outcomes related to the Window-2 CBNRM Grant Program.
Table 2: GP Project Logic Related to Window-2 CBNRM Grant Program Description
Environmental degradation and unsustainable land use threaten sustained economic growth and result in high greenhouse gas emissions. Many Indonesians, especially in remote rural areas, lack reliable and a�ordable electricity and are generally using unsustainable energy sources. Lack of clarity about land and natural resource use licensing and the jurisdictional boundaries of villages deter investment. Financial institutions lack capacity to evaluate renewable energy and other green growth investments. Untapped potential for economic activity that generates high revenue but low carbon impact.
Poverty reduction through low carbon economic growth.
(i) increase productivity and reduce reliance on fossil fuels by expanding renewable energy; and
(ii) increase productivity and reduce land-based greenhouse gas emissions by improving land use practices and management of natural resources
1. Increased local capacity to utilize natural resources more productively, inclusively and sustainably;
2. Secured and increased assets for sustainable livelihoods;3. Improved enabling environment at landscape level for
communities to secure economic, social and environmental needs;
4. Increased and improved business and community low carbon practices for natural resource management/conservation, agriculture, and other land-use practices that are inclusive of women and to vulnerable groups, and prevent displacement;
5. Increased opportunity and support for micro, small and medium enterprises (MSMEs) to obtain greater added value from forestry, agriculture and other land-use practices;
6. Improved capacity and access of women and women organizations to acquire economic benefit from community-based natural resources management;
7. Increased availability of stable and sustainable renewable energy (including electricity in isolated communities);
8. Improved local knowledge and operational capacity to operate and manage power plants (of less than 200 KW);
9. Improved local knowledge about how to use new electricity productively;
10. Increased incentives for communities to prioritize sustainability over short-term needs and vulnerability;
11. Improved community involvement in infrastructure development related to CBNRM.
12. Improved knowledge and awareness of how to practice proper land and environmental management.
IV. Potential Applicants
It is anticipated that CBNRM Grant recipients will consist largely of local eligible registered entities – civil society organizations (CSOs) and community-based organizations (CBOs) — who can apply their experience and expertise in implementing community-based projects in particular landscapes or targeted districts. The CBNRM Grant Program is therefore primarily targeting NGOs, cooperatives, women’s organizations, organizations of adat/indigenous peoples, community groups, micro-small and medium-sized enterprises (MSMEs)2 as grant recipients and project implementers. Applicants may join up as a consortium and submit a consortium proposal. One member of the consortium should be the lead organization responsible for coordinating and implementing the proposed project and must be designated as the lead applicant. Eligible entities from outside the 24 priority districts are required to have local partner(s) as their important implementing organization.
V. Funding Level and Types of Projects
MCA-Indonesia has allocated US$45 million for the CBNRM Grant Program, with up to an additional US$ 2 million (earmarked from Gender and Social Inclusion fund) specifically to support women’s organizations, including cooperatives and federated association for projects related to enhancing women’s economic empowerment in the context of CBNRM activities aimed at increasing household income and improving nutrition security. Under the CBNRM Grant Program individual grants valued at US$250,000 to US$2 million per project can be made available. All CBNRM Grant-funded projects must be completed by the end of December 2017.
Type of projects may include initiatives on the production side (on-farm activities), in the processing stages (o�-farm activities), as well as for the market activities (value-chains related activities). Examples or indicative types of projects that the CBNRM Grant Program can fund include but are not limited to:• Watershed management that improves the sustainability and socio-economic
benefits of downstream hydropower schemes or otherwise supports sustainable, low-carbon economic growth. Examples include agroforestry or other activities to rehabilitate degraded forest, mangrove, peatland, and conservation areas;
• Activities to improve the stewardship of productive forests and enhance economic opportunities in sustainable timber and non-timber forest products/services/certification. Examples include community forestry (i.e. community forests/hutan rakyat, community-based forest management/Hutan Kemasyarakatan-HKm, village forests/hutan desa, people plantations/Hutan Tanaman Rakyat-HTR, and customary forests initiatives);
• Small scale (less than 200kW) electricity or heat generation from renewable sources for household or community use. Examples include run-of-stream pico-hydro power installation, biogas generation from farming/agricultural
waste for cooking, as well as others;• Promotion of sustainable agriculture among smallholder farmers, including
provision of protein-rich products for improved household nutrition security, its processing and marketing, and;
• Women’s economic empowerment: grants earmarked by the Gender and Social Inclusion fund targeted specifically to women owned organizations, federated women’s associations, women’s cooperatives with national and local networks, and organizations with women beneficiaries explicitly for enhancing women’s economic activities, increasing their productivity, entrepreneurship and value chain development integrating sustainable agriculture and renewable energy to increase household income and improve nutrition security.
• Other NRM activities that support low-carbon economic growth through improved management of critical ecosystems and enhanced livelihood opportunities for surrounding communities. Examples include community-managed ecotourism or agro-tourism projects among others.
Individual grants may consist of a bundle or a group of complementing activities in a given district(s).
VI. Characteristics of Applicants (Organization Eligibility)
To be eligible for a Green Prosperity Facility CBNRM Grant, the Applicant, or in the case of a consortium, the organization(s) must be:• An entity legally registered in Indonesia, established by virtue of deed of
establishment made before public notary and approved by the Ministry of Law and Human Rights (preferable); and/or holding Surat Izin Usaha Perdagangan (SIUP) issued by related local government agency.
• The legal entities can be in the form of Non-Government Organizations, Community Based Organizations , faith based organization, Micro Small Medium Business Enterprises (MSMEs), Cooperative, Community Social Organizations; and
• The entities mentioned above must have work experience in Indonesia (at least for three years) in developing and/or implementing community sustainable agriculture, sustainable forestry/agroforestry, eco-tourism, sustainable land-use and renewable energy projects, or other CBNRM type of projects.
Due to the objectives of the CBNRM Grants as described in the previous Sections, specific conditions and considerations are needed:• The CBNRM Grant Program is primarily targeted towards eligible local entities
in the 24 GP priority districts;• Eligible entities from outside the 24 priority districts are required to have local
partner(s) within the 24 priority districts as their important implementing organization;
• Applicants may team up as a consortium and submit a consortium proposal. In this regard, a lead organization must be identified and designated as the responsible entity for coordinating and implementing the proposed project;
• Small organizations, community groups or other eligible organizations that may lack capacity to formulate or implement work plans and related budgets or to manage grant funding in accordance with the requirements set forth in
this Call for Concept Notes are encouraged to a�liate with entities that have the capacity to formulate a work plan and manage grant funding;
• MCA-Indonesia will give priority to districts that have signed an MoU with MCA-Indonesia;
• Preference will be given to organizations who have not received MCA-Indonesia grants from Window 1 or Window 3 of the GP Facility;
• An organization or consortium may apply for funding for projects located in the geographic areas of both Lot 1 and Lot 2;
• MCA-Indonesia, through the decision of the Investment Committee (IC), may provide specific Technical Assistance (through di�erent mechanisms than those provided by the Grant Program Managers, GPMs) for eligible entities that need additional capacity in preparing the full proposal and or its project implementation.
Applicants (including all members of the Consortium) must provide legal evidence of their establishment and as a registered organization as stated above. This evidence must be presented at the Concept Note stage. Moreover, Applicants (or Lead Organization of the Consortium) must provide financial record, audited by independent external auditor (at least one audit report in the last three years, institutional-based audit or project-based audit report), and or other documentation indicating their financial ability to receive and manage funds prior to the receipt of grant funds.
In addition, and specifically for community-based renewable energy projects of less than 200 kW, additional technical capacity criteria apply requiring the Applicant or Organization in a Consortium to demonstrate:1. a proven technical capacity to design, procure, construct, and commission the
proposed renewable energy system (RES). At a minimum 2 curriculum vitae (CV) for senior management or project manager and technical person within the organization (or consortia) responsible for the project must be submitted with the application.
2. Capacity to work with communities. The applicants shall list their experiences in engaging with local communities.
3. Exhibit experience to establish or support technology transfer to rural communities.
4. Capacity to conduct Operational and Maintenance (O&M) training for the local operator/local community for the project.
5. Capacity to liaise with local government to resolve any requirement and/or disputed matters during the planning, development, construction and commission of the Project.
Non-Eligible Applicant/Proponent CriteriaThe criteria for non-eligible Applicants/proponents are:• Individuals are not eligible to apply and be considered for GP Facility support; • Political parties, groups or institutions, or their subsidiaries and affiliates are
not eligible to apply for funding;• Organizations that advocate, promote or espouse anti-democratic policies or
illegal activities under Indonesian law are not eligible to apply for funding;• Entities in which Key Parties in the selection process, as well as members of
their immediate families or their business partners, have a financial interest are not eligible to apply for funding. For the purposes of this document Key
Parties are defined as employees of MCA-Indonesia, MCC, members of MWA or the sta� or a�liates of the PMC, GPM, TEP Members, PA, FA and the Investment Committee; and
• Any entities that are blacklisted from participation in procurements funded with the World Bank assistance or debarred or suspended from participations in procurements funded by the U.S. federal government or otherwise prohibited by applicable United States law or Executive Order or United States policies including under any existing anti-terrorist policies shall be excluded from procurements awarded under the Compact.
VII. Characteristics of Projects that may be Supported (Project Eligibility)
Whenever applicable, CBNRM Grants will fund projects that support or complement the GP Facility’s core investment objectives in a particular landscape in the target districts. CBNRM grants will fund smaller-scale projects that promote enhanced management of watersheds and forests to improve the sustainability of renewable energy and/or agriculture investments and support rural livelihoods and economic development. The Criteria are:• The primary objective(s) of the project must clearly align with the official
objectives of the GP Project;• The grant amount requested must comply with the requirements set forth in
the Call for Concept Notes of the CBNRM Grant Program, which is between US$250,000 and US$2 million;
• The project must be implemented within one or more of the 24 target districts under the GP project.
• The project implementation timeline must be within the limits set forth in the Call for Concept Notes, which is up to December 31, 2017.
• The project must demonstrate the willingness to adopt environmental and social safeguards and social and gender inclusion mechanisms in line with MCA-Indonesia’s Environment and Social Management System (ESMS) Framework and the Social and Gender Integration Plan (SGIP), and contribute to Landscape – Lifescape Analysis.
• The projects must demonstrate adoption of MCA-Indonesia requirements on Monitoring and Evaluation and Economic Analysis.
Additional Eligible Technology for Renewable Energy Projects For revitalization of renewable energy systems:• Projects proposing to revitalize existing renewable energy system schemes
should focus on o�-grid systems, small scale application of hydro-based technologies, solar energy both for heating and photovoltaic (PV) application, mini-grid application integrated with renewable energy technologies, small wind, hybrid system, and biomass. Eligible technologies are listed in Table-3.
• The proposed plant or system must be owned or managed by local community or community organization; and
• The proposed plant or system should be out of commission, not functional/inactive, or not operating at full capacity. Applicant should describe the condition of the existing plant/system in the proposal.
For new construction of RE system:• Priority will be given to small scale renewable technology application such as
hydro-based, solar photovoltaic (thermal/heat and PV), wind, hybrid, biomass,
stand alone or o�-grid (mini-grid) application. Eligible technologies are listed in Table-3. Due to limited time-frame available of the CBNRM Grant Program, any proposed new construction of an RE system (particularly of the hydro-based) can only be supported if the proponent can assure that the construction of the proposed projects can be finalized before November 2017.
• Total installed capacity for individual plant/system does not exceed the capacity indicated in Table-3.
• Local community should own and manage the facilities after the project is completed; and
• Should the proposed project of RE with off-grid (mini-grid) application provide service to local communities, when preparing the Concept Note, applicant should provide information or explain whether the grid expansion plan of PLN would reach the targeted community within 5 to 7 years. This information can be obtained from respective PLN’s o�ce in district or provincial level, and local government (district).
Table 3. Eligible Renewable Energy Technology
Micro-Hydro Mini-hydro power plant, per unit capacity smaller than 100 kW, connected through mini-grid to households.
Aggregate (bundling) micro-hydro power plants with capacity smaller than 200 kW, connected through mini-grid to households.
Aggregate Pico-hydro, total capacity smaller than 200 kW
Solar Energy General solar energy applications that utilize solarApplication thermal/heat for agriculture (e.g. drying, water pumping) and
livelihood, etc.
Solar Aggregate Solar Home System (SHS) with Photovoltaic battery/storage, installed in community facilities (for (PV technology) example: schools, community health centers). Solar Power Plant less than 50 kWp, with storage system, with
mini-grid connection. Aggregate solar power plant, with storage system, less than 200
kWp Solar PV system for water pumping or other solar PV
applications.
Biomass Biogas digester, methane captured from animal manure or organic waste, used by individual household and/or community use. Range of capacity for biogas of 4m3 to 24 m3
Utilization of biomass crops for producing biofuel (not including palm oil)
Hybrid Combination or two or more renewable energies to form a hybrid system to generate electricity, with mini-grid connection, with capacity of plant is less than 50 kWp, and 200 kWp in aggregate
Small Wind Small wind power applications with individual windTurbine turbine capacity less than 2,5 kW and maximum 200 kW in
aggregate, Any productive windmill application (e.g. water pumping)
Non Eligible Project CriteriaA list of activities or projects that are ineligible for CBNRM Grant funding as appears below:• Any project that would violate the terms of the Compact;• Any project that violates the laws of Indonesia or would violate the restriction
on the use of MCC Funding set forth in Section 2.7 of the Compact;• Any project that is likely to cause a significant environmental, health, or safety
hazard as defined by the MCC Environmental Guidelines; in practice, all projects requiring a full E(S)IA (or AMDAL, under Indonesian law) are discouraged, as procedures are too lengthy (and expensive) and will leave too little time for actual project implementation.
• Any project with significant potential to create, exacerbate or reinforce existing social and/or gender inequalities;
• Any project in which due diligence requirements and risks are too high to justify the investment (e.g. unmanageable land ownership dispute and conflict);
• Any project in which the Key Parties would have a conflict of interest;• Any project involving forced labor or child labor below working age as per
Government of Indonesia regulation and MCC Tra�cking in Person Policy;• Additional clause on MCC’s Trafficking in Persons TIP policy;• Any projects which involve removal of existing natural forest to make way for
a plantation, orchard, or farm;• Any projects that are based on drainage and conversion of peatland (with
peat depths of 3m or more or shallower peat found on edges of peat domes). • Any projects involving activities that impinge on lands and forests of
indigenous or customary communities, without full documented consent of such peoples;
• Any projects related to trade in endangered species of wildlife or wildlife products regulated under Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), or products derived thereof; and
• Any projects in production of or trade in tobacco.
VIII. Project Appraisal Criteria
After being screened against the organizational and project eligibility criteria stated above, all applicants seeking funding under the MCA-Indonesia CBNRM Grant Program will be evaluated against prescribed criteria to ensure equity and fairness in the selection process. The prescribed criteria will applied in two stages. The first appraisal will be at the Concept Note stage and the second at the Full Proposal stage. In addition, there will be a pre-Award Due Diligence survey that will be conducted prior to the grant agreement signing. Results of this survey will be used as input for developing conditions of precedence in the grant agreement. Applicants that do not meet the minimum requirements at each stage will not proceed further to the next stage and will not be selected to receive support under the CBNRM Grant Program. A general description of the appraisal criteria is presented below and will be further elaborated at the Call for Proposals.
The overall factors that will be reviewed and appraised are listed in Table-4 below:
Table 4. Project Appraisal Criteria
Criteria Description
Organizational and Financial Management Capacity
OC1: Demonstrate su�cient and relevant administrative and Organizational technical expertise, experience and management capacity Capacity in implementing similar project or projects in the sector
proposed. The activities to be performed must be allowable under the
Applicant’s Deed of Establishment. The Deed of Establishment is valid.
OC2: Demonstrate su�cient and relevant financial management Financial expertise, experience and capacity in managing grant Management funding or project budget within the size/amount proposedCapacity as well as timeframe. Provide financial and audit report (at least one audit report in
the last three years, institutional-based audit or project-based audit report).
Economic & Technical Aspects
TA 1: Economic The proposed project demonstrates a minimum EconomicRate of Return (ERR) Rate of Return of 10%.TA 2: Project Rationale: Provide concise description regarding: • Situational analysis (social, economic, gender and vulnerable group); • Problem statement; and • How the project will address the problem (inclusive social, gender and vulnerable group).
TA. 3: Logical Demonstrate alignment with GP Project objectives and Framework indicators: • Reduce poverty; and • Reduce Green House Gas emission.
TA. 4: Project Provide concise description regarding:Approach • Main activities; and • How the proposed project link to landscape approach.
TA. 5: Implementation Provide concise description regarding:Plan • Indicative budget; • Activity schedule/time frame; • Project management structure; and • Technical Feasibility (for RE and other infrastructure development such as irrigation).
TA. 6: Sustainability Provide concise description regarding: • Institutional sustainability; • Financial sustainability; and • Knowledge management.
Cross cutting issues
CC. 1: Environmental Provide concise description regarding:and Social Management • How community engagement will be implemented; andSystem • Environmental and social risk analysis and activities to mitigate the risks.
CC. 2: Social and Conduct preliminary social and gender assessment, identifyGender Integration Plan constraints of women and vulnerable groups’ in accessing
project activities as well as opportunities to reduce barriers for providing equal access and benefits to all.
Monitoring & Evaluation
ME1: Monitoring and Provide concise description regarding:Evaluation Plan • Project indicators and how they are linked to GP Project
Log-Frame; • Monitoring methodology; and • Monitoring frequency.
IX. Content of Application
The Application shall include the following three documents that need to be submitted to the GPMs:1. A Cover Letter conveying the Applicant’s submission requesting funding from
the Community Based Natural Resources Management Grant Program, including the value of required GP grant in Indonesian Rupiah (IDR). Please use the template provided in Annex 1 with organization’s letter head.
2. Organization, Project Overview and Eligibility, including information on applicant/lead organization, members of consortium (if applicable), proposed project overview and eligibility information within 5 pages limit. Please use the template provided in Annex 2, Section-1.
3. Concept Note outlining project rationale and objectives, technical approach, targets and budget within the 10 page limit. Please use the template in Annex 2, Section-2.
All three documents should be in Bahasa Indonesia. Other documents required by the templates should be attached to the application document.
X. Submission Instruction
The Concept Note submission and all the required documents should be submitted electronically by email and must be received by Grant Program Manager of the CBNRM of MCA-Indonesia no later than Friday, November 6, 2015 at 17:00 Jakarta time. Meanwhile, the hard copies (3 copies) of the Concept Note document with original signatures should be received by the GPMs within four days.
1. Project Application / Concept Note Submission for the projects located in Sumatra and Kalimantan should be sent to:
Yayasan KEHATI Grant Program Manager of CBNRM Lot 1 (Sumatra and Kalimantan) – MCA
Indonesia Jl. Bangka VIII No. 3B Pela Mampang, Jakarta Selatan 12720 Email: [email protected]
2. Project Application / Concept Note Submission for the projects located in Sulawesi and Nusa Tenggara should be sent to:
Euroconsult Mott McDonald Grant Program Manager of CBNRM Lot 2 (Sulawesi and Nusa Tenggara) –
MCA Indonesia Jl. Tirtayasa No 1A Kebayoran Baru, Jakarta Selatan 12160 Email: [email protected]
Questions and requests for clarification should also be submitted to the above e-mail address, latest by Friday, October 23, 2015 at 17.00 Jakarta time.
MCA-Indonesia reserves the right to change any deadline and/or requirement stated in this Call for Concept Notes and Invitation to Submit the Full Proposal, and suspend or cancel this Call and Invitation.
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Annex 1 | Cover Letter – Concept Note Submission
CONCEPT NOTE SUBMISSION FOR CBNRM GRANT PROGRAM(English version is for reference only)
To:CBNRM Grant Program ManagerMillennium Challenge Account – Indonesia
LOT 1 - KEHATI Jl. Bangka VIII No.3BPela Mampang, Jakarta Selatan 12720
LOT 2 - EUROCONSULTJl. Tirtayasa 1 No.1, Kebayoran Baru, Jakarta 12160
Attn. Green Prosperity Project Director [Place, Date/Month/Year]
Dear Sir,We the undersigned, [name of organization, include members of the consortium, if applicable], are [type of organization] based in [complete address of organiza-tion]. Herewith we would like to submit a Concept Note for requesting grant support from MCA-Indonesia under the CBNRM Grant Program. The total cost of the project being proposed is IDR [insert amount], and total amount of grant being requested from CBNRM Grant Program is IDR [insert amount]. We are more than happy to discuss any details regarding our Concept Note if required.
Sincerely yours, [Signature of the Applicant’s Representative]
[Name & Position of Applicant’s Representative]
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Annex 2 | Concept Note Template
CONCEPT NOTE FOR COMMUNITY-BASED NATURAL RESOURCE MANAGEMENT GRANT PROGRAM(English version is for reference only)
1. ORGANIZATION INFORMATION, PROJECT OVERVIEW AND ELIGIBILITY (Maximum of 5 pages)
Applicant information provided below must adequately describe how the Appli-cant is compliant with Organizational and Project Eligibility requirements as described in detail in the Call for Concept Notes Document, including that nei-ther the Applicant and/or any of its consortium partners, nor the proposed proj-ect, fall under the Non-Eligible Project Partners and/or Non-eligible Project lists. The organizational and project overview should not exceed a maximum of 5 pages.
A. ORGANIZATION (or LEAD ORGANIZATION, if applying as a Consortium)
1. Organization Name
2.
Organization Address
Postal Address
Phone / Fax
Website
3. Legal Registration Number
4. Organization Type
Non-Government Organization
Community Based Organization
Micro Small Medium Enterprise (MSME)
Women Organization
Other. ……………..( please, specify)
5.
Organization Description
(Brief information regarding organizational
structure, organizational objectives, core
business, and regu lar activities.)
B. CONTACT PERSON
1
Name of Head of the Organization
Position
Postal Address
Phone/Fax
2
Name of Contact Person for this Concept Note
Position
Postal Address
Phone/Fax
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C. MEMBERS OF CONSORTIUM (if applying as a Consortium)
1.
Organization Name
Postal Address
Phone / Fax
Website
Legal Registration Number
Organization Type
Organization Description
(For each member of the partnership provide
brief information on core business, activities or
past/current projects involved)
Contact Person for this Concept Note
(Name, title/position, phone, e -mail)
2.
Organization Name 1
Postal Address
Phone / Fax
Website
Legal Registration Number
Organization Type
Organization Description
Contact Person for this Concept Note
D.PROJECT TYPE, LOCATION, AND ESTIMATED COST
Project Title
Project Type
(A project could be consist of one or more type
of activities. The project type is the dominant
activities implemented in the project)
Watershed Management
Improved Forest Stewardship
Small Scale Renewable Energy
Sustainable Agriculture
NRM -Based Business Development
Women’s Economic Empowerment
Other Low Carbon Development Initiatives
Project Location(s)
(By Province, District, sub-district, and village)
Project Duration
Estimated Total Project Cost IDR ______________________(Total Cost)
Fund requested from CBNRM Grant Program IDR ______________________(Total Amount)
1 Please add the rows/columns as appropriate if the Consortium has more than 3 members.
2. PROPOSED PROJECT (Maximum of 10 pages)
Please describe the proposed project, addressing the key elements below. This section should be a maximum of 10 pages.
1. Executive Summary – maximum 1 page
• The summary will include project title, location(s), main activities, timeframe, and budget/project costs.
2. Project Rationale, Framework, and economic impact – maximum 3 pages
• Background information of the proposed project landscape o geographical information; o biophysical conditions and GHG challenges; o social and cultural background; o community livelihood information
• Business case for: 1) Specific challenges to be addressed by project (problem statement); 2) Why this intervention is needed; and 3) How MCA support will address the problem.
• Logical or results framework that demonstrates: 1) How the proposed interventions will address the problem, outlining the objectives, outputs, expected
outcomes, indicators, and assumptions; and 2) How the proposed project aligns and supports GP Project Objectives (poverty reduction and GHG
reduction) • Project Economic Impact
Please describe potential long term revenue or cost saving for community and it’s landscape which will be generated by the project.
3. Technical Approach and Implementation Plan – maximum 2 pages
• Description of the project interventions and proposed approach (each project intervention should be linked to the objectives outlined above and should be associated with a measurable target), including: 1) Main Activities 2) Identification / description of key milestones and its deliverables
• Describe the proposed project timeline and indicative activity schedule.
• Indicative budget (in total, and fund requested from MCA-Indonesia) No Line Item Total Project Costs (IDR) Fund from MCA-Indonesia
(IDR) Fund from Other Sources
(if any) (IDR or other)
• Project management structure and key personnel • Plan to complete technical feasibility study for RE project and projects involving infrastructure
4. Environment, Social, and Gender – maximum 1.5 pages
• Description of the potential environmental and social risk analysis of the proposed project implementation and identified activities to mitigate the risks;
• Description on how the project will engage local community; • Description on how the social and gender problem will be assessed and addressed.
5. Sustainability – maximum 1 page
• Describe approach to ensure sustainability of the project result: 1) Institutional Sustainability
Millennium Challenge Account - Indonesia
MR 21 Building, 11th Floor, Jl. Menteng Raya No. 21, Jakarta 10340Tel. +6221 39831971 | Fax: +6221 39831970
[email protected] | www.mca-indonesia.go.id
