Date: 22 September 2015

Subject: Addendum No.2 to the Competitive Aid Grant Guideline for Australia Middle East NGO Cooperation Agreement Program Phase 3 (AMENCA 3): Palestinian Farmers Connecting to Markets

Interested parties are advised of the following:

Questions raised in the AMENCA 3 information session, held in Canberra on 15 September 2015 (See Attachment 1 to this Addendum 2 for Presentations provided at the workshop).

General

Q1: Competitive Aid Grant Guideline Annex 1 – Consortia member documentation (page 27), contains an instruction to complete 'Organisation details' on page 4 but I cannot find it.

A1. The correct page number is 17. Please refer to Section 2: Proposal template > 1. Applicant details on page 17.

Q2: Where can I find the Organisation Certificate template?

A2. The Organisations Certificate is available on page 24 and 25 of the Competitive Aid Grant guideline, and must be completed by all consortium members.

Q3: Who should provide 'Past Experience Forms' (Competitive Aid Grant Guideline page 28) and is there a page limit?

A3. Lead ANGOs must provide two Past Experience Forms. All other consortia members must include at least one, and a maximum of two Past Experience Forms. Past Experience Forms should not exceed two pages each.

Q4. Can a local partner be a lead consortium member?

A4. As per 'Organisation Eligibility' (Competitive Aid Grant Guidelines page 6) only fully accredited Australian NGO Cooperation Program (ANCP) ANGOs are eligible to apply as lead consortium members. Consortia must include one ANGO lead partnering with at least one local Palestinian NGO.

Q5: Did DFAT coordinate with other donors during the design phase of AMENCA 3?

A5: The Australian Representative Office in Ramallah engaged with a variety of donors working in the agricultural sector during the AMENCA 3 design. The European Union is working to develop the olive oil value chain in the West Bank. The UK, Swiss and Dutch are also undertaking some value chain activities. While there is similar work being done in the region, we are not aware of any approaches replicating AMENCA 3. DFAT will monitor for opportunities to collaborate with other donors after proposals are provisionally selected. This will be discussed at the Synergies and Collaboration Workshop in November 2015.

Q6. Can proposals exceed page limits and/or include additional annexes?

A6. No. If ANGOs determine the current proposal template is insufficient they should propose specific additions in writing to AMENCA3@dfat.gov.au . DFAT will make a determination and advise all parties via an Addendum if additional allowances are granted.

Q7. Will DFAT consider a deadline extension to account for Muslim and Jewish holidays?

A7. No.

Q8. The framework assumes a program manager will be in place for AMENCA 3 by the time of interview, as this position is required at interview. Is this mandatory? Should the role be part or full time?

A8. It is not mandatory that a program manager be recruited by the time of interview; however an approach to recruitment should be noted in the proposal. ANGO's should determine the most appropriate representatives to participate in the interview process. The program manager role can be part or full time, depending on the ANGO's programming in the PTs. DFAT expects program managers to be proactive and problem solving, produce high quality analysis and reporting, and be responsive to requests for information.

Proposals and programming

Q9. Do proposals have to address all three Outcomes?

A9. Proposals will not be marked down for focusing on one or two Outcomes. Part of the in-country Synergies and Collaboration Workshop will be to ensure that AMENCA 3 projects cumulatively address all outcomes.

Q10: Is there further guidance on the geographic focus of AMENCA 3?

A10. AMENCA 3 will operate in both Gaza and the West Bank, but there is no requirement that consortia proposals cover both areas. NGOs should concentrate projects in areas where they have networks and value add.

Q11. Is there flexibility of funding allocations across financial years?

A11. The AMENCA 3 Competitive Aid Grant Guideline (page 21) provides that 'proposals should be prepared on a notional budget of not more than A$5,125,000 for the initial three year period, beginning in February 2016 (FY2015-16) but spreading across four financial years to December 2018 (FY2018-19), and for an additional amount of A$2,975,000 for the possible further option period Years 4-5. In line with this guidance, budgets should reflect expenses necessary to advance the theory of change and targeted program Outcomes, or provide a very strong rationale for deviation. There may be some flexibility to, for example, front load budgets for infrastructure related projects. Allocations will be further negotiated during and after the Synergies and Collaboration Workshop.

Q12. Will the numerical targets for results (Design page 15), be proportional to the geographic presence and funding allocations?

A12. DFAT recognises there are limitations and difficulties to working in Gaza where some interventions like rural roads are unlikely to be able to be implemented. But AMENCA 3 targets are conservative. In seeking to make a significant difference in rural communities, particularly for women, we are prioritising quality over quantity. Targets may be adjusted as we a get deeper appreciation for how ambitious or conservative they are within participating communities.

Q13. Should proposals respond to value chains identified in the Commodity Table Snapshot on page 10 of the Design Framework?

A13. No. The table provides examples only. It is not prescriptive.

Q14. Can DFAT provide an example of a Theory of Change, and how much can the proposals Theory of Change diverge away from the design?

A14. Section Four of the Proposal Template (Annex 1 to the Competitive Aid Grant Guideline) requires 'analysis underpinning the programming choices made and program logic to show why the proposal will work in the context'. A Theory of Change diagram may be included at Annex 3 to support this analysis. The AMENCA 3 Program Logic on page 13 of the Design provides an example of a Theory of Change diagram; however, there is no set format. Proposal narratives and Theory of Change diagrams should communicate the approach and value add of consortia in meeting overall program Outcomes.

Q15. There are two Ministry of Agriculture strategies – one in the West Bank and one in Gaza. Will DFAT engage with both? Would a strategy change in 2016 impact AMENCA 3?

A15. DFAT coordinates with the Palestinian Authority and the Palestinian Authority Ministry of Agriculture (MoA). A MoA representative will sit on the AMENCA 3 Program Steering Committee. We will be guided by the MoA on any new strategy but we anticipate that the strategic direction of the program will not change.

Q16. How should the Innovation Fund be reflected in proposals, and how will it be assessed against Value for Money?

A16.The Innovation Fund is separate from the ANGO funding pool, and so does not need to be reflected in proposals. However, DFAT is open to innovative approaches in proposals, and welcomes ideas on how some of the Fund might be utilised in conjunction with ANGO proposals. That said, no proposal should be reliant on resourcing from the Innovation Fund.

Q17. How should proposals present and describe commitment to knowledge sharing and synergies?

A17. This is up to the consortium to present in their proposal. At minimum, NGOs should be prepared to take the lead on areas where they have a comparative advantage, for example in particular value chains or with key partnerships. Where practical, access to market networks and private sector deals could be scaled across multiple AMENCA 3 communities and different ANGOs.

Agriculture and Food Security

Q18. The target in the AMENCA 3 design for 'three value chains functioning better' seems low. Should NGOs focus on one value chain from start to finish, or can proposals and projects work across multiple value chains?

A18. This target is subject to change as value chain analysis is conducted in Year 1 and beyond. It is up to NGOs to determine their approach and number of value chains they operate in, and put forward as strong a proposal as possible to maximise delivered benefit to the stakeholders of AMENCA 3. Some interventions can apply across multiple value chains, such as seed banks and fertilizer inputs.

Q19. How should the proposal balance the requirement of exit strategies at 3 – 5 years with longer term sustainability?

A19. Projects should be oriented to sustainable outcomes beyond Australia's investment, for example, commercially viable business linkages.

Gender

Q20. How should NGOs balance the emphasis on supporting poor women at the household level with farmers who are able to scale, noting the ambitious private sector targets?

A20. AMENCA 3 recognises the need to work with more market-ready farmers who are capable of and willing to enter into business arrangements, and create pathways for others to follow later. But this should not be limited to male farmers. As well as targeting vulnerable women, AMENCA 3 will seek to engage women with business flair and assets who can act as champions for Women's Economic Empowerment in the agriculture sector.

The Innovation Fund could potentially be utilised for training with private sector partners on constructive gender inclusive deals. Value chain choice can also significantly influence availability of opportunities for women, including poor women. A target under Outcome 3 requires that 70% of the value chains developed include new opportunities for women and youth.

Q21. How much can/should the proposal focus on protection, including against violence against women?

A21. Proposals should be designed with conflict sensitive programming in mind, but should not seek to address the broad range of protection issues in the Palestinian Territories (PTs). A protection component in a bid will only be considered if it is integral to achieving AMENCA 3 Outcomes.

All parties must abide by DFAT's Child Protection Policy.

Risk and due diligence

Q22. Can DFAT outline the risk assessments over the full five year implementation period?

A22. Managing risks of fraud and diversion of funds to terrorism are critical to the success of AMENCA 3, and a key role of ANGOs. DFAT and successful consortia will undertake regular risk assessments and management over the duration of AMENCA 3, commensurate with the high risk operating environment. This will include but is not limited to: fulfilling due diligence requirements for all partners (including those engaged after the program has commenced); spot checks by DFAT staff, annual risk and counter terrorism reporting by ANGOs and the DFAT AMENCA 3 program manager; and an independent risk assessment as part of the mid-term review.

Q23. How should ANGOs approach risks of operating in Gaza and Area C?

A23. AMENCA 3 should follow the practice of AMENCA 2, which managed these risks well. The program should not run counter to the planning rules of the Israeli authorities. It should be guided by communities, which will often be the best judge of what will be accepted or rejected. In AMENCA 2, this manifested as roads in Area B, complemented by small scale infrastructure in Areas C such as pear shape cisterns with capacity for 70 cubic metres of rainwater that were not connected to underground aquifers.

Private Sector

Q24. What benchmarks should NGOs use for procuring private sector services?

A24. NGOs should refer to DFAT's Aid Advisory Remuneration Framework as a benchmark for rates. But also be creative, for example by accessing pro-bono assistance or goods at cost price, or providing new market access for companies.

Q25. Can DFAT clarify the statement in the Design Framework that ANGOs will have to 'see themselves like commercial operators'?

A25. AMENCA 3 will work towards commercially sustainable pathways to development. Consortia should be cognisant of the market context and position themselves to network and broker deals with mutual benefit. This may include assuming risk to facilitate a private sector deal; for example, investing in small infrastructure as an incentive to encourage a commercial operator to invest in a community. Potential private sector partners should be considered in terms of qualities such as reputation and networks, not just financial capital. Economies of scale can spread benefits to multiple supply chains, communities and consortium.

Q26. Should proposals and implementation include deals being done with the private sector that improve broad market conditions without directly linking to beneficiaries?

A26. The mandate of the Australian aid program is sustainable economic growth and poverty reduction. Improving the enabling environment for small farmers is part of AMENCA 3 but all proposals must demonstrate how projects benefit specific communities.

Q27. Can ANGOs partner with Australian corporations, companies and universities?

A27. Engaging the private sector broadens the ways in which ANGOs can address development needs in Palestinian communities. The scope of partnerships and consortium arrangements is endless (and could include Israeli partners).

Q28. Do proposals have to list all partners including minor subcontractors?

A28. All consortia partners implementing AMENCA 3 for at least three years should be listed as members in the proposal and provide relevant documentation. Partners that are likely to only contribute to a limited extent for a limited period need not be consortia members. Additional consortia partners may be added during implementation with DFAT's approval.

Q29. How did AMENCA 2 work with the private sector?

A29. AMENCA 2 saw partners utilising an increasing number of commercial opportunities to enhance village activities, such as seed banks and commercialisation and export of products like freekah, honey and strawberries.

Q30. How much/ what percentage does DFAT expect to be spent on infrastructure?

A30. At the proposal stage it is up to the judgement of the consortia.

Q31. Was any other material discussed during the AMENCA 3 Information session on 15 September 2015?

A31. The Information session offered overviews of DFAT policies. All bidders should be aware of DFAT policies and approaches to: fraud control; aid risk management; private sector development; agriculture, fisheries and water, gender equality, particularly Gender Equality and Women's Economic Empowerment in Agriculture, and child protection. Copies of presentations from DFAT's Contracting and Agriculture and Food Security sections are attached. The above Q&A provides an overview of additional discussions.

Additional information on due diligence requirements and a revised budget template will be released in a future addendum.

Attachments 1 & 2: Presentation from the AMENCA 3 Information Session in Canberra on 15 September 2015:

• AMENCA 3 briefing: competitive grants process [PPTX 428 KB]
• AMENCA 3 briefing: agriculture and food security [PPTX 6.93 MB]

All other information as set out in the AMENCA 3 CGG dated 3 September 2015, and in Addendum 1 dated 14 September 2015 remains unchanged.