Request for Applications

(RFA) # 02/12

Grant Support Program for Solar Dryers for Fruits and Vegetables in Pakistan

June 2012

Closing Date & Time: 19th July, 2012, 1700 hours

USAID’s Agribusiness Project

Agribusiness Support Fund

www.asf.org.pk

Table of Contents

1. SUMMARY OF GRANT SUPPORT 3

2. DESCRIPTION OF THE PROGRAM 4

2.1 Context: 4

2.2 Need Statement 4

2.3 Indicative working areas for the selected value chains: 5

2.4 Scope of work 5

2.5 Expected Results/Outcomes 5

2.6 Specifications of the Solar Dryer 5

2.6.1 Specification of Glass dryer (1000 kg) 5

2.6.2 Specification of Tunnel dryer (500 -1200 kg) 5

2.6.3 Design of the Solar Dryer 6

3. ELIGIBILITY AND EVALUATION CRITERIA 11

4. INELIGIBLE EXPENSES 12

5. AUTHORITY/GOVERNING REGULATIONS 13

6. INSTRUCTIONS TO APPLICANTS 14

6.1 Applicant Self-Assessment 14

6.2 Full Grant Application 14

6.3 Required Documents Checklist: 16

ATTACHMENTS 19

ATTACHMENT A - GRANT APPLICATION FORM 20

ATTACHMENT B - BUDGET FORMS 22

ATTACHMENT C - ENSURING EQUAL OPPORTUNITY FOR FAITH-BASED & COMMUNITY ORGANIZATIONS 27

ATTACHMENT D - APPLICANT SELF-ASSESSMENT FORM 28

ATTACHMENT E - ENVIRONMENTAL SCREENING FORM 33

ATTACHMENT F - COST SHARING GUIDANCE 37

1.  SUMMARY OF GRANT SUPPORT

Under USAID’s Agribusiness Project (UAP), Agribusiness Support Fund (ASF) seeks to provide grant support to horticulture farmers and private investors who are willing to participate, on a minimum 50% cost-share basis, in the program for establishment of Solar Dryers for fruits and vegetables. Overall goal of this program is to increase income of existing horticulture farmers and create employment through availability of Solar Dryers for better quality dried fruits and vegetables for the local and export markets whereas as specific objectives of this program are:

1.  To supply and install solar dryers in the selected value chains of fruits and vegetables to reduce wastage and enhance product quality;

2.  Provide technical information and hands on skills for the farmers interested in the drying of fruits/vegetables enabling them to exploit full potential from their products;

3.  Establish better marketing linkages with local and international traders/exporters for dried products resulting in increased sales;

ASF/UAP anticipates that the total cost for establishment of solar dryers would be up to $23,333 and $20,100 for Glass Type and Tunnel Type respectively. Successful applicants will be required to contribute a minimum of 50% of the total cost of the program. See Annex F for cost share information. Remaining 50% cost will be contributed by UAP in shape of grant. It is expected that this program will be completed in a period of one (01) year.

All grant agreements with successful applicants will be negotiated, denominated and funded in Pakistani Rupees. The solar dryers will be provided as in-kind support, ASF/UAP will arrange the supply of the solar dryers through a pre-qualified vendor(s). Other Payments (if any) under grant support will be made on a reimbursement basis in tranches corresponding to achievement of agreed upon milestones. All costs funded by the grant must be allowable, allocable and reasonable. A cost-sharing element as mentioned earlier from the applicant and/or an approved third party must be contributed to the grant activity. See Annex F for cost share information. Grant applications must be supported by a detailed and realistic budget as described in Annex B.

ASF/ UAP will not assume any responsibility regarding adoption/implementation of this product and any resulting profit/loss or damages will be the sole responsibility of the applicant. The usage of both types of dryer supported require adherence to user manual/Standard Operating Procedures, failing which, product may be affected for which ASF/UAP will take no responsibility.

All goods and services under in-kind support will be procured and provided by UAP to the grantee and these goods and services will be included in the grantee budgets and clearly marked as UAP in-kind support.

The resources of UAP are derived from, and entirely dependent upon, funding from USAID. Therefore, any commitments made by UAP under this RFA including any future amendments to this RFA are subject to the availability of funding from USAID.

No activities will be funded that are determined to cause significant harm to the environment or increased tensions between ethnic or social groups. In case of non compliance to environmental assessment and mitigation measures, the grant will be suspended till corrective action has been taken, failure to meet the compliance requirements will result in termination of grant.

2.  DESCRIPTION OF THE PROGRAM

2.1  Context:

The USAID’s Agribusiness Project has been designed to address the constraints hampering the overall development of the high value agriculture sector in Pakistan. The project has adopted a holistic approach to identify priority value chains and address gaps in key value chains through integrated assistance packages. Raw methods for drying of fruits have been evidenced in the northern areas for apricots, raisin/kishmish in Baluchistan, dates in DI Khan and Sindh, green leafy vegetables in central Punjab and red-chilies in south Sindh. Traditional methods of sun-drying the fruits and vegetables are very non-hygienic and results in low quality of dried products i.e leathery skin, brittleness, aflatoxin residues, uneven fruit size and non-attractive colors.

The large volumes of fruit harvests that are left-over from the marketing are available in case of apricots, dates and other fruits. The leafy vegetables and herbs are also abundantly available in supply season which are used in many house hold recipes in every kitchen by large population of Pakistan. The red chilies of Pakistan are in huge demand if dried in appropriate tunnels without soil contact. The growers, processors and traders are constrained in this regard as they have little or no-knowledge of the appropriate low-cost drying/dehydration technology which could help them supply clean, hygienic and better quality dried products. The prices of dried products are much better as compared to fresh (dried apricots, raisin, red chilies, semi-dried fresh dates, leafy vegetables etc.) which can help increase the income, employment and trading opportunities for a large farm base. These types of technologies have been widely practiced in Afghanistan, Greece, Saudi Arabia, Iraq, Tunisia, Egypt and Algeria.

2.2  Need Statement

There has been increasing demand in both domestic and foreign markets for dried products. Especially the domestic market and neighboring countries are increasingly demanding high quality dried fruits and vegetables including apricots, dates, chilies, herbs and green-leafy vegetables, which has emerged as an opportunity for horticulture development in Pakistan. However, the horticultural industry is constrained by lack of awareness on drying technology, resources and skills to correctly install and operate the drying equipment. The UAP project has most recently conducted the participatory rapid horticultural and livestock appraisals across Pakistan. During the consultative process, many stakeholders along various value chains including, chilies, apricot, dates and other vegetables have indicated potential opportunity for income, employment enhancement and reducing the wastages by drying of fruits and vegetables under low-cost (solar) tunnels/frames.

A few of the dried products based value chains have been able to get the shares in the national and international markets, they include dates, raisins, apricots, chilies, onion and green leafy herbs and vegetables. The traditional drying systems have not been able to supply the products with better quality. Especially the techniques being used are un-hygienic, un-safe, and non-productive; they produce low quality and have very low efficiency. The dependency on weather especially creates problems. Open drying process incurs more wastage, re-wetting and loss of quality and quantity. The large number of dates , apricots and chilies are affected by this. The process improvement by supplying the solar based dryers either tunnel or glass tray based will improve the drying efficiency; improve product quality, safety and price. The traders including both national and international are ready to pay the higher prices for Pakistani fresh-dates (not boiled), apricots, chilies and green leafy vegetables. The proposed intervention under the UAP project will result in improvement in supply side which will improve the efficiencies in these value chains.

2.3  Indicative working areas for the selected value chains:

Sr.No. / Value Chains / Potential Areas
1.  / Dates / D.I. Khan, Turbat, Panjgoor, Khairpur
2.  / Apricots / Giglit-Baltistan, Skardu, Qila Saifullah
3.  / Chilies / Umerkot, Kunri
4.  / Raisin (Grapes) / Giglit-Baltistan, Quetta, Pishin
5.  / Leafy Vegetables and Herbs / All over Pakistan

2.4  Scope of work

This support program will arrange the supply of the solar dryers through a pre-qualified vendor either tunnels or solar glass houses for the purpose of producing the high quality, safe and quality solar dried products. The intervention will ensure the availability of low cost high efficiency drying technology for the fruits and vegetables that are in-demand in the local and export markets. The dryers will be provided on cost sharing basis with maximum share of 50% by the UAP project under the partnership window cost sharing grants mechanism.

To ensure efficiency, training will be provided on operation and maintenance of installed solar dryers.

2.5  Expected Results/Outcomes

The proposed project is expected to result in availability of high quality dried fruits and vegetables with low microbiological burden, residues, free from extraneous matter, better sensory attributes, quality and shelf life. This will provide foundation for creating better product demand and market prices which in turn will have a positive effect on socio-economic condition of the project beneficiary and the overall value chain.

2.6  Specifications of the Solar Dryer

2.6.1  Specification of Glass dryer (1000 kg)

·  Drying Chamber/Room (Length=31ft, Width=6.5ft and Height=13ft)

·  Washing and Packing Rooms (Length=15ft, Width=10ft and Height=13)

2.6.2  Specification of Tunnel dryer (500 -1200 kg)

·  Length = 35 feet, Width = 17 feet, Ceiling height = 8 feet. Floor Area of tunnel dryer 595 square feet

·  UV 200 micron Imported Plastic Sheet. Floor will be cemented black color

2.6.3  Design of the Solar Dryer

Glass Type


Glass Type


Tunnel Type

Solar system operating the exhaust fans (PV-Panel 50-Watt, Battery 165-Volt, two exhaust fans DC 30 cm dia)
Concrete Floor (Black Coated)
Length 12m, width 6m, thickness 0.30m(in two steps each 0.15m, bottom step PCC 1:4:8, top step PCC 1:2:4)

Tunnel Type

Tunnel Type

3.  ELIGIBILITY AND EVALUATION CRITERIA

Eligible beneficiaries of the program will be relevant horticulture farmers and potential private sector investors who are willing to invest at least 50% of total cost. In case number of applications exceeds available grants, preference will be given in following order.

1.  Applicants proposing cost share in excess of 50%

2.  Small land holders/ enterprises

3.  Applicants from underserved areas

4.  INELIGIBLE EXPENSES

UAP grant funds may not be utilized for the following:

·  Profit

·  Military equipment

·  Surveillance equipment

·  Commodities and services for support of police and other law enforcement activities

·  Abortion equipment and services

·  Luxury goods and gambling equipment

·  Weather modification equipment

·  Private ceremonies, parties, celebrations, or "representation" expenses (entertainment costs)

·  Purchases of restricted goods, such as agricultural commodities, motor vehicles, pharmaceuticals, contraceptive products, pesticides, used equipment and fertilizers without USAID’s AO approval.

·  Purchases of goods or services from countries[1] or suppliers as may be identified by USAID's consolidated list of debarred, suspended, or ineligible subcontractors at http://www.epls.gov/ or the United Nations Security (UNSC) sanctions committee established under UNSC Resolution (http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm)

·  Prior obligations of and/or, debts, fines, and penalties imposed on the Grantee.

·  Grant or sub-grant assistance to the Government of Pakistan, including federal, provincial, divisional, district, and other local government units without a Mission director deviation from ADS 303.

·  Alcoholic beverages.

·  Purchases or activities unnecessary to accomplish grant purposes as determined by the UAP.

Grant funded activities must comply with the provisions regarding voluntary participation, consent, and prohibition on abortion related activities as outlined in Standard Provision 14 Voluntary Population Planning. Funds must likewise not be used to promote or advocate the legalization or practice of prostitution or sex trafficking, however, this does not preclude the provision to individuals of palliative care and treatment.

5.  AUTHORITY/GOVERNING REGULATIONS

The grants will be awarded and implemented in accordance with USAID and US Government regulations governing grants under cooperative agreements and UAP internal grant management policies.

UAP alerts applicants and grantees that USAID may, at its sole discretion, supersede any decision, act or omission taken by UAP with respect to any grant. Under the UAP grant program, USAID retains the right at all times to (1) dictate a different decision with respect to the award or administration of any grant; (2) rectify an omission by UAP with respect to the award or administration of any grant; 3) take over the administration of any grant awarded hereunder; and/or (4) terminate, in whole or in part, UAP’s grant-making authorities.

6.  INSTRUCTIONS TO APPLICANTS

The applicants will submit implementation plan for the implementation of the scope of work described above introducing innovations that are appropriate to their organizational/ enterprise strengths.

6.1 Applicant Self-Assessment

All applicants will be subject to a pre-award responsibility determination by UAP, to ascertain whether they have the minimum management capabilities required to handle US government funds. Self assessment is a first step in the responsibility determination process (for all applicants excluding individual farmers, ASF/UAP will conduct the assessment for individual farmers). The Applicant Self Assessment Form is contained in Annex D.

6.2 Full Grant Application

Basic information about the applicant and budget of the program should be provided as per Annex A and B. Applicants shall present their proposals in that format.

The application elements and guidelines are summarized below:

·  Section I (Basic Information). The Applicant provides basic contact information, information regarding the status of the organization/ enterprise and about the program.