Post on 17-Dec-2015
Ganesh Kumar Shrestha
Sr. Planning & Admin. OfficerProject for Agriculture Commercialization and Trade
Ministry of Agricultural Development
A Lecture Note for a Training organized by Staff College, Jawalakhel, Lalitpur )
2015
Instrument- an instrument to achieve project's objective. It is purposive from the side of the grant providers, rationale in-built (Agenda- visible), generally controversial.
Competitive Matching Grant
Selective (target group/beneficiaries), Support innovative ideas, Purposive, Agenda visible, Accountability from the side of the grant recipients in-built, monitoring and evaluation remain key issue
Type of grant and maximum value
Minimum beneficiary contribution to sub project costs
Farmers Groups
Coop.Producer
associations Privatefirms
Microenterprises
Small size grant (not to exceed 35,000 US$ equivalent)
50% 50% 50% 70%
Not available
Medium size grant (not to exceed 100,000 US$ equivalent)
Not-eligible 50% 50% 70%
Not available
Micro-grant(not to exceed 10,000 US$ equivalent)
25% 25% Not availableNot
available
25%
1.PACT has made a provision of grant to meet one of its key objectives of developing partnerships in well-performing or emerging agricultural commodity value chains.
2.Grants are available only to the eligible value chain participants from prioritized agricultural commodity value chains.
3. PACT's grant scheme follows an integrated value chain development approach.
4. PACT grants are competitive matching grants
5. PACT matching grants intend to help filling some of the funding gap in the investment capital of the beneficiaries' sub project.
6. Only proposed proposals for sub projects with demonstrated financial sustainability for the joint applicants can be considered for support under PACT's grant scheme.
7. Grant recipients' contribution should come in the form of cash only.
8. PACT follows an output based financing system
9. Compliance with environment and social safeguards is prerequisite to PACT's grant.
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SELECTION OF GRANT RECIPEINTS
Three Stage Assessment Process Competitive, Transparent and Objective
First- Project Concept Note Stage (20-30% selection)
Second- Field Verification (90+ % Approval)
Third- Full Proposal (75+ % Approval)
Micro-grant- Two Stage Evaluation (Proposal + Field Appraisal)
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10
Financial evaluation
Technical evaluation Rejection
Full Project Proposal
(By Applicant)
Approved (Sub-project)
Approved (Sub-project)
Aspect Service Delivery within Transfer of Technology (TOT) approach
Service Delivery within Competitive Matching Grant Scheme (CMGS) -PACT
Source of technology
National Agriculture Research System (NARS)
Multiple Sources
Service delivery approach
Piecemeal Holistic and integrative
Value chain integration
Undermined/almost left out High priority
Strategic planning(Time frame)
Long-term Short to medium (Maximum 2-3 years)
Nature of sub-projects
Supply driven Demand driven
Aspect Technology (TOT) CMGS -PACTParticipation Participation
(Conventional/informal/non-tangible))
Partnership based on sharing in investment, risks, benefits (tangible)
Fund channelization
Multilayer, Use of government Agencies and direct transfer to the implementation rare and often partial (activity based)
Output based financing system based on results, Direct to service/grant recipients and no intermediaries
Selection of direct beneficiaries
As to the wishes of the implementing agencies
Transparent competitive process
Sustainability of outputs/outcomes
Low to Medium High
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Achievements by Components
SN. Key Activities Target
(2018)
Current Status Remark
1 Matching Grants to
Eligible Value Chain
Participants (Number)
700 Achieved- 517
(74%)
In process
(two calls)
By July 2015, this
will be achieved
(Likely to reach
950+ except
micro-grant
recipients)- 100%
2 Establishment of
Agribusiness
Incubation Centre
1 Draft contract
signed
Inception stage
Component 1: Agriculture and Rural Business
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Achievements by ComponentsComponent 1: Agriculture and Rural Business
SN. Key Activities Target
(2018)
Current Status Remark
3 Rehabilitation of fire
damaged Kalimati
Fruit and Vegetable
Market, KTM
1 On-going Likely to be
completed before
July 2016
4 Construction of central
wholesale markets
(Fruit & Flower, Fish)
2 DPR
preparation
underway
5 Construction/
rehabilitation of
regional markets
4 Inception
stage
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Achievements by ComponentsComponent 2: SPS and Food Trade
SN. Key Activities Target
(2018)
Current Status Remark
1 Capacity Enhancement of
DFTQC, VSDAO and
NPQP Laboratories
through the provision of lab
equipments
Demand
basis
Procured in
several lots(Samples analysed in 2013/14 by DFTQC- 34,747, VSDAO- 674 & NPQP:15)
On-going
(No procurement
from next FY)
2 Training to related staff of
aforementioned
departments
Demand
basis
On-going On-going
3 Construction of Fumigation
Chamber and Post
Quarantine Facilities
2 New procurement
process initiated
NOL from the WB
received but yet no
receipt of approval
from the MOAD
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Achievements by ComponentsComponent 3: Project Management and Monitoring and Evaluation
SN. Key Activities Current Status Remark
1 Preparation of Trimester and Annual Project Implementation Reports
On-going (11 reports)
Regular and timely
2 Preparation for Reports for WB Mission
On-going (11 Missions including 3 technical missions)
Regular and timely
3 Submission of unaudited and audited reports
On-going Regular and timely
4 Supervision and Monitoring of Sub-projects
Operation of web-based MIS
Development of mobile APPs
Regular and intensified
5 Disbursement of grant based on field appraisals (Output field verification)
Regular(Call 1 and Call 2 SPs)
Already 88.9% disbursed from call 1 and call 2 commitments
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Achievements by ComponentsComponent 3: Project Management and Monitoring and Evaluation contd..
SN. Key Activities Current
Status
Remark
6 Establishment, operation and supervision of
Project Implementation Support Team
(PRISTs) Offices
5 offices Operational
and active
7 PCN, FPP and field verification guidelines
preparation and orientation
15 +
guidelines
Almost
completed
8 Short studies including value chain
development plan preparation and baseline
studies
12+ Regular
9 Facilitating supervision of the sub-project
sites for MoAD and WB missions
Regular Regular
10 Orientation to PACT focal persons at
department, regional and district
Regular Regular
11 Capacity development related activities such
as training and observation tours for MOAD,
PACT and department officials
Regular Regular
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Call 1, Call 2 and Call 3 (SPs)
Grant Men Women Total % women
Call 1 6444 3852 10296 37.4
Call 2 17493 14011 31504 44.5
Call 3 11481 9692 21173 45.7
Total 35404 27553 62957 43.8
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Call
Sub-projects with men SP
Managers
Sub-projects with women SP Managers
Proportion of Women SP
Managers (%)
1 43 6 11.8
2 186 15 7.4
3 235 32 12.0
Total 464 53 10.3%
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Region
Collection Centre
Storage house Processing PlantMarket Shed
Central 28 21 13 4
Pokhara 26 14 12 0
Surkhet 5 4 6 2
Doti 1 2 4 1
Total 60 41 35 7
1. Sustaining the current achievements including infrastructures developed.
2. Increasingly high demands for the PACT's grant (Meeting people's expectations)
3. Delayed in meeting milestones and deadlines by many grant recipients- grant disbursement delay
4. Delayed in field appraisal of the activities and outputs achieved by GRs
5. Integration of value chain functions along specific value chain still problematic and challenging due to tendency of most of the persons to get involved in everything
6. Lacking effective mechanisms for retaining Government Officials due to indirect and direct monetary incentive mechanisms
7. Effective and intensive utilization of Government Officials
1. Direct financing to grassroots organizations increases project reach and it could be one of the best options to enhance competitiveness of small agriculture holders and agribusinesses
2. Shifting from input based financing system to output based competitive grant system is a challenging task. This requires transparency, good governance and proactive service delivery from the side of the service provider.
3. Success of output based financing system depends on intensive and timely monitoring and supervision.
4. Active participation and involvement of MoAD line agencies (government) is crucial in the implementation of big projects like PACT for sustainability of the project activities, outputs, outcomes and impact.
5. Grant and Credit/Loan should be available simultaneously