European Union

Innovative Approaches to Cash delivery for the Malawi Social Cash Transfer Programme

Information on EU Funding

• DEVCO/DCI-FOOD/L/ACT/131-101

• INFORMATION SESSION 30 March 2011

LEGAL NOTICE

• This presentation is for information only.• The legal texts are contained in the published

Guidelines for applicants and in the standard grant contracts attached to the Guidelines and available on the webpage of DEVCO

• European Aid and Development Cooperationhttp://ec.europa.eu/europeaid/work/procedures/implementation/grants/index_en.htm

Background EU Funding

• Food Security Thematic Programme 2007-2010

• Component 5: Innovative Approaches• Objective: stimulate and capture innovative,

locally owned and sustainable solutions to current and future food security challenges

• Malawi envelope: EUR 3 300 000 (received from 2008 funds)

Context for EU Funding

• Use of funds: Support to Social Cash Transfer Programme in Malawi: innovative, locally owned, sustainable, addressing food security challenges

• Priority Issues: Proposals must fit within the government’s context and must take account of ongoing developments

Size of Grant

• Minimum EU contribution: EUR 2 700 000• Maximum EU contribution: EUR 3 300 000

Number of Grants• It is expected that one grant will be awarded

• Contracting Authority: EU Delegation Malawi

Eligibility - actions

• Duration: between 24-36 months • Contribute to financial development within the

framework of the existing social cash transfer• Location: SCT Sectretariat Lilongwe, districts

Mchingi, Machinga and possibly Mangochi• Types of action:

– Facilitation of the pilot of e-payment technologies– Monitoring and evaluation of the pilot actions

Important: • Actions must fit within government’s context and

existing developments (pages 9-11 of the guidelines)

Eligibility - applicants

Applicants can be:– NGOs– Local authorities, public sector bodies– International Organisations– Private Sector

Other criteria:

– Be directly responsible for the preparation and management of the action – not acting as an intermediary

– Have prior working experience in Malawi– Can be individual organisations but partnerships preferred

Applicant acts as “lead organisation”

Partnerships

Potential Partners:• Financial service providers, i.e. organisations that

operate a technology that can transfer money to final beneficiaries

Important:• Partnerships are encouraged to enhance technical

and financial capacity• Partner organisations are bound by the same

eligibility criteria• Non-profit rule: Grants may not have the purpose or

effect of producing a profit for the grant beneficiary or its partner (s) (PRAG 6.2.10)

EU Contribution

• Minimum %: 50% of eligible cost• Maximum %: 100% of eligible cost

• Maximum 80% of accepted cost

• Accepted cost = estimated total eligible costs + taxes, including VAT, where the beneficiary can show it cannot reclaim it

% explained in Malawi context

• 80% accepted cost (the VAT issue):

• If applicant can show (s)he cannot reclaim Taxes; Taxes can be considered as co-financing in the accepted costs

• However, so far in Malawi: EU funded projects can reclaim/be exempted from VAT – therefore this option is not applicable to Malawi

• EU Delegation and NAO can assist in obtaining exemption from MRA

% explained in Malawi context

• 100% of eligible cost:

• only possible if applicant provides proof that action fits within context of emergency, crisis, violation of fundamental right etc. (art. 253 of Implementing Rules)

• This option should not apply in the framework of this Call for Proposals

• Conclusion: Proposals should include a level of co-financing from applicant’s and/or partners’ own financial resources

Eligibility - costs

Eligible costs: • Direct costs based on supporting documents • Costs necessary for the implementation of the action• Budget: Realistic & cost-effective, i.e. reasonable,

justified and complying with sound financial management (economy & efficiency)

Types of eligible costs: • Direct costs (General Conditions, art. 14)• Indirect costs

Eligibility - costs

Direct costs (examples):

• Cost of staff assigned to the action • Travel and subsistence costs• Purchase or rental cost of equipment and supplies• Consumables• Costs deriving from the action, e.g. audit, evaluation,

translations, publications etc.

Eligibility - costs

Indirect cost: • A fixed percentage not exceeding 7% of the total amount of

direct eligible costs of the Action to cover indirect costs incurred by the beneficiary for the implementation of the Action

Ineligible costs (examples, details General Conditions): • Debts and debt service charges• Provision for losses• Interest owed• Costs already covered by another action• Purchases of land or buildings• Currency exchange losses• Tax, including VAT• Credit to 3rd parties• Salary “top ups” for public sector workers

Eligibility - costs

Contingencies:

•Not exceeding 5% of direct eligible costs

• It can be used only with prior written consent of the Contracting Authority

How to apply: PADOR

Potential Applicant Data On-line Registration Service

Prior registration obligatory for applicants and all partners

Access to PADOR: http://ec.europa.eu/europeaid/work/onlineservices/pador/index_en.htm

All questions related to PADOR registration should be addressed to the PADOR helpdesk: Europeaid-pador@ec.europa.eu

Selection & Award Process

• The grant will be awarded through a restricted Call for Proposals

• Step 1: Concept Note • Step 2: Full Application

• Deadline Concept Note submission: 20 May 2011

Selection & Award Process

Applicant sends only Concept Note

Administrative Check (1)

Concept Notes Pre-selected

All Applicants informed by letter

Pre-selected applicants invited to send Full Application

Form

Evaluation of Full Application Form

(3)

Call for proposals launched 25 March

2011

Deadline:20 May 2011, 12.00 noon

Evaluation of Concept Note (2)

Deadline: 45 days after invitation

Full Application Forms Selected

Selected applicants invited to send

Supporting documents

Eligibility Check (4)

Contract Award

How to apply: CONCEPT NOTE

Use the Standard Template!!

Concept Note Submission

Content (Page 1)Title of the action:Title of the action:

Number and title of Number and title of lot:lot:

Location(s) of the Location(s) of the action:action:

<specify country, region(s), area(s) or town(s) that will benefit from the Action>

Name of the Name of the applicant:applicant:

Nationality of the Nationality of the applicant:applicant:

Concept Note SubmissionContent (Page 2)

EuropeAid ID[1]

Ongoing contract/Legal Entity File Lumber (if available)[2]

Legal status[3]

Partner(s)[4] Name, EuropeAid ID, Nationality and date of establishment and Legal status

Estimated total eligible cost of the action (A)

Amount requested from the Contracting Authority (B)

% of estimated total eligible cost of action (B/Ax100)

[EUR/National currency] [EUR/National currency] %

Estimated taxes (C) [5] * if applicable

Estimated total accepted cost of the action (either A

or, if applicable, A+C)

% of estimated total accepted cost of action

(B/A+Cx100) * if applicable

[EUR/National currency] [EUR/National currency] %

Total duration of the action : <months>

Concept Note SubmissionContent (Page 2 ctd.)

Applicant's contact details for the purpose of this action

Postal address:

Telephone number: (fixed and mobile) Country code + city code + number

Fax number: Country code + city code + number

Contact person for this action:

Contact person's email:

Address:

Website of the Organisation:

Concept Note Submission

Content (Pages 5-7)

I. Relevance of the Action

II. Description of the Action and its effectiveness

III. Sustainability of the Action

Only the Concept Note form will be evaluated.

Make sure that this document contain ALL relevant information concerning the action.

Draft as clearly as possible !

Concept Note Submission

To be noted

• No detailed budget needed, only estimated cost

BUT• Contribution from EU may not vary by more than

20% in full application

• Contribution from applicant is expected (strengthens viability and sustainability of the action)

Concept Note Submission

What to send?

• Concept Note [Pages 1-8 of the Application]• Checklist• Declaration by the Applicant for Concept Note

Instructions:• 1 Paper Original, 1 Paper Copy, 1 CD Rom version• English• Electronic document (handwritten not accepted)• Put in a sealed envelope

Concept Note Submission

How to send?

• Concept Notes must be submitted by registered mail, private courier or hand-delivery

• Concept Notes sent by any other means (e.g. fax or e-mail) or delivered to other addresses will be rejected

Concept Note Submission: Envelope

Call for Proposals “Food Security Innovative Approaches”Delegation of the European Union to MalawiP.O. Box 30102 [Area 18 Roundabout/Presidential Way]Lilongwe 3The Republic of Malawi

“Not to be opened before the opening session”“Osatsegula kufikira nthawi ya mwambo wotsekulira itakwana”

EuropeAid/………/L/ACT/MW OrganisationP.O. Box XXX

LilongweMalawi

Concept Note Submission

Deadline for submission:

20 May 2011 at 12:00 noonLilongwe time

• Deadline for Questions: 30 April 2011• E-mail address for questions:

Delegation-Malawi-FSTP-Innovative@eeas.europa.eu

• Deadline Answers EU Delegation: 9 May 2011

Administrative Check

Assessment of:

• Respect of deadline• Respect of all the criteria specified in points 1-4 of the Checklist

Administrative Check

Advise:

•Use the standard template•Do not change the template•Do not forget to sign the declaration by the applicant

Administrative Check

Advise:

• Use the checklist to make sure your concept note is administratively compliant

• Read carefully the Special and General Conditions of the standard grant contract to familiarise with applicable rules from the design of the action

Concept Notes Evaluation

Comprises:

• Eligibility of proposed action

• Relevance of the action

•Merits and effectiveness

•Viability and sustainability

Scores

1. Relevance of the action Sub-score 30

1.1 How relevant is the proposal to the objectives and priorities of the Call for Proposals?1.2 How relevant to the particular needs and constraints of the target country(ies) or region(s) is the proposal? 1.3 How clearly defined and strategically chosen are those involved (final beneficiaries, target groups)? Have their needs been clearly defined and does the proposal address them appropriately?1.4 Does the proposal contain specific added-value elements, such as environmental issues, promotion of gender, equality and equal opportunities, needs of disabled people, rights of minorities and rights of indigenous peoples or innovation and best practices?

5x2

5x2

5

5

2. Design of the action Sub-score 20

2.1 How coherent is the overall design of the action? In particular does it reflect the analysis of the problem involved, take into account external factors and relevant stakeholders2.2 Is the action feasible and consistent in relation to the objectives and expected results?

5x2

5x2

TOTAL SCORE 50

Concept Notes Evaluation Grid

! Minimum 30 points1 = very poor; 2 = poor; 3 = adequate; 4 = good; 5 = very good

Concept Notes Evaluation

Finalisation of evaluation:

• List of proposed eligible actions ranked according to total score•Only those with minimum 30 points will be considered for pre-selection• List will be reduced to twice the available budget of the Call for Proposals

Concept Notes Evaluation

Notification of results:

• All applicants will receive a letter

• Pre-selected applicants will be invited to submit a full application

PRACTICALITIES

Call for Proposals: on the web

The EU Delegation does not provide printed copies

How to access it!

INTERNET: http://ec.europa.eu/europeaid/work/funding/index_en.htm

Good Luck with your Applications!

The floor is open for questions