72039125RFA00002 - NOFO USAID-Pakistan Water Resilience Activity (WRA).pdf

Issue Date: December 06, 2024 Deadline for Question: December 20, 2024 Closing Date: February 06, 2025 Closing Time: 1630 Pakistan Standard Time

Subject: Notice of Funding Opportunity (NOFO) - Number:

72039125RFA00002

Program Title: Inclusive Water Governance Activity (IWGA)

Federal Assistance Listing Number: 98.001

Potential Applicants:

The United States Agency for International Development (USAID) is seeking applications for a cooperative agreement from qualified entities to implement the Inclusive Water Governance Activity. Eligibility for this award is restricted to local entities.

USAID intends to make an award to the applicant(s) who best meets the objectives of this funding opportunity based on the merit review criteria described in this NOFO subject to a risk assessment. Eligible parties interested in submitting an application are encouraged to read this NOFO thoroughly to understand the type of program sought, application submission requirements and selection process.

To be eligible for award, the applicant must provide all information as required in this NOFO and meet eligibility standards in Section C of this NOFO. This funding opportunity is posted on www.grants.gov, and may be amended. It is the responsibility of the applicant to regularly check the website to ensure they have the latest information pertaining to this notice of funding opportunity and to ensure that the NOFO has been received from the internet in its entirety.

USAID bears no responsibility for data errors resulting from transmission or conversion process.

If you have difficulty registering on www.grants.gov or accessing the NOFO, please contact the Grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

USAID may not award to an applicant unless the applicant has complied with all applicable unique entity identifier and System for Award Management (SAM) requirements detailed in Section D.9. The registration process may take many weeks to complete. Therefore, applicants are encouraged to begin registration early in the process.

http://www.grants.gov mailto:support@grants.gov

Notice of Funding Opportunity (NOFO)

72039125RFA00002

Inclusive Water Governance Activity

Please send any questions to the point(s) of contact identified in Section G. The deadline for questions is shown above. Responses to questions received prior to the deadline will be furnished to all potential applicants through an amendment to this notice posted to www.grants.gov.

Issuance of this notice of funding opportunity does not constitute an award commitment on the part of the Government nor does it commit the Government to pay for any costs incurred in preparation or submission of comments/suggestions or an application. Applications are submitted at the risk of the applicant. All preparation and submission costs are at the applicant’s expense.

Thank you for your interest in USAID programs.

Sincerely, –/S/–

Jean-Jacques Badiane Agreement Officer

Inclusive Water Governance Activity

TABLE OF CONTENTS

SECTION A: PROGRAM DESCRIPTION

SECTION B: FEDERAL AWARD INFORMATION

SECTION C: ELIGIBILITY INFORMATION

SECTION D: APPLICATION AND SUBMISSION INFORMATION

SECTION E: APPLICATION REVIEW INFORMATION

SECTION F: FEDERAL AWARD ADMINISTRATION INFORMATION

SECTION G: FEDERAL AWARDING AGENCY CONTACT(S)

SECTION H: OTHER INFORMATION

ANNEX 1 - 2024 CERTIFICATIONS, ASSURANCES, REPRESENTATIONS, AND OTHER STATEMENTS OF

THE RECIPIENT

ANNEX 2 - SUMMARY BUDGET TEMPLATE

ANNEX 3 - SAMPLE SECURITY PLAN

ANNEX 4 - 2024 STANDARD PROVISIONS FOR NON U.S NONGOVERNMENTAL

ORGANIZATIONS

Inclusive Water Governance Activity

SECTION A: PROGRAM DESCRIPTION

This funding opportunity is authorized under the Foreign Assistance Act (FAA) of 1961, as amended. The resulting award will be subject to 2 CFR 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and USAID’s supplement, 2 CFR 700, as well as the additional requirements found in Section F.

1. Background and Problem Analysis

Pakistan’s water management sector simultaneously faces the immediate and dual risks of frequent floods and water scarcity. Climate change is further stressing the fragile water balance due to unpredictable variations in the intensity and frequency of rainfall and runoff. As discussed below, hill torrents, urban groundwater recharge, and rural water storage are three critically-important yet under-resourced areas of work.

Governance is an integral element that underpins these three water sector challenges. Literature review shows that the “the real bottlenecks often are related to governance challenges such as narrow mandates and capacities of main organizations, ineffective operational procedures besides institutional fragmentation, lack of systematic planning and inadequate financial systems.” The absence of locally-led inclusive and robust policy and implementation mechanisms, lack of systemic coordination among key stakeholders, limited and unreliable data, inadequate water service delivery and financial unsustainability of water systems are some of the major causes that lead to mismanagement of flood water.

1.1. Hill Torrents

A hill torrent is a temporary stream collecting rainwater runoff in steep mountain ravines generating rapid runoff. During heavy rainfall events, hill torrents can cause flash floods of short duration and high intensity causing huge damage to infrastructure, crops and loss of human and animal lives. Hill torrents are mostly situated in the Sulaiman Range (covering parts of Khyber Pakhtunkhwa, Punjab and Balochistan provinces) and Kirther region (covering parts of Balochistan and Sindh provinces). The damage from hill torrents lies downstream but the solution lies upstream. It is not water alone but also the mountain slope that turns rainfall into flash flood which leads to severe erosion of the loose soil and thus amplifies the destructive force of water flows laden with silt. The challenge is to slow down its speed upstream to save millions of people and land downstream, and make beneficial use of the flood water. This will be possible only through a basin1 level integrated approach.

Flash floods occur during monsoon period which threatens lives (human and livestock), devastates properties and damages agriculture by erosion of fertile topsoil, irrigation infrastructure and crop submergence. However, at the same time, the flood is a blessing as it

1 A hill torrent basin is commonly divided into three portions, i.e. catchment (upper section), command (middle section) and drainage areas (lower section). Each part has its unique challenges which also vary from one terrent to the other.

https://en.wikipedia.org/wiki/Sulaiman_Mountains https://en.wikipedia.org/wiki/Kirthar_Mountains

Inclusive Water Governance Activity enables agricultural activities in the command area (locally called Pachad area in Punjab) where no other source of irrigation is available. The flood also brings fertile soil through silt deposition and replenishes aquifers in some parts. The development challenge is to minimize the negative impacts while amplifying the benefits in a sustainable manner.

Management of flash floods generated in the Sulaiman and Kirther ranges remains a challenge due to weak governance and inadequate management capacity of stakeholders. A fragmented, top-down and infrastructural approach (managing flood with embankments only) in the past did not deter the recurring floods in areas located in the foothills of Sulaiman Range. The current practices to manage hill torrents has been limited to construction of downstream embankments and dispersion structures. An integrated basin level governance and management approach is required to reduce the speed of stream flows in the upstream catchment area and harness the floodwater for economic, social and environmental benefits while minimizing flood risks for the downstream communities.

1.2. Urban Groundwater Recharge

In recent years, major cities like Lahore, Karachi, Peshawar, Islamabad and parts of Balochistan were flooded by intensive rainfall. In spite of these floods, all major cities and towns are facing water shortages for domestic, commercial, and environmental purposes. Due to shortage of water, households are dependent on private vendors (water tankers). Climate change will further exacerbate this supply-demand gap.

Dwindling groundwater supply and urban flooding are twin problems in many cities. A lack of adequate rainwater harvesting, inadequate drainage capacity, and reduced groundwater recharge due to expanding urbanization are some of the leading causes of urban flooding.

Climate change coupled with unplanned expansion of cities poses a huge threat to the limited groundwater reserves that supply 90% of the water for domestic and 100% for industrial purposes in major cities of Pakistan. Without proper groundwater recharge and regulation, most of the country’s urban centers will continue to have an increasing number of people who have to rely on unsafe and costly water from the private vendors (water tankers). Floods provide an opportunity to store excess water in the aquifers for future uses.

1.3. Rural Water Storage

Most of the past investments in the water sector focused on construction of large dams on the main Indus River System, while water conservation through conventional low-cost small scale water storage ponds at individual and community level remain largely unexplored. Despite huge potential for private and community level investments2 water storage through small-scale structures in remote rural areas remains inadequate. Locally developed, small-scale water conservation initiatives, such as ponds, wetlands, diversion structures, check and delay action

2 Afaq dam in District Khushab (Punjab) is an excellent example of local investments in construction of small-scale water storage structures where a community in collaboration with an individual donor completed the dam at PKR 30 million that provides drinking water for 2,000 households, besides other socio-economic and environmental benefits (groundwater recharge).

Inclusive Water Governance Activity water retention structures, and command area development, are hindered by a lack of technical assistance, enabling policies, and sustainable financial models.

Community level water conservation initiatives that leverage local materials and resources, including the private sector, would not only increase water storage and availability for local economic and social benefits but also reduce the magnitude of flooding for downstream communities. Increased local water storage/conservation/recharge capacity embedded with flood resilience mechanisms will provide a cushion against water scarcity in the command area and enhance groundwater recharge.

2. Summary of Relevant USG and Donor Activities

Relevant USAID’s activities include:

● Recharge Pakistan Project (2023-2028): The Recharge activity is building resilience of communities and natural assets through introduction of green infrastructure and ecosystem-based adaptation approach to tackle floods and droughts.

● Water Management for Enhanced Productivity (2018-2025): The Water Management for Enhanced Productivity activity has been working with the host government, communities and civil society to build water management institutions and introduce technologies for informed decision-making and improved water delivery service in the agriculture sector.

● Citizen Engagement Activities (2023-2028): (HumAhang and BUILD) in Sindh, Punjab, Balochistan, and KP also focussing on flood rehabilitation work engaging local communities and government in different districts.

● Pakistan Climate Finance (2024-2029): This activity aims to facilitate Pakistan's transition to a low-carbon, climate-resilient economy by mobilizing public and private finance for climate mitigation, resilience, and adaptation.

● Acumen Climate Action Fund (2024-2029): This fund seeks to demonstrate commercially viable business models, improve farmers' climate adaptive capacity, and catalyze capital towards Pakistan's national climate adaptation priorities in the agriculture sector.

Other relevant development partners and host-country activities include:

● Federal Government: The federal government has the National Flood Protection Plan IV

(NFPP-IV).

● Provincial and Local Government Government's Initiatives: Provincial and local governments have their own initiatives on hill torrents, urban flooding and rural water storages.

● Development Partners: Development partners have been working on hill torrents in Punjab, KP, Sindh and Balochistan.

3. Lessons Learned

The activity may capitalize on the following lessons learned:

Inclusive Water Governance Activity

● Climate change poses significant risks for the geographic focus area with increasing severity and frequency level of flooding over time.

● A systems change approach should be taken when analyzing flood and drought events.

The underlying patterns (recurring floods and devastation), structures (administrative, social and economic), mental models (popular belief about floods being natural and unavoidable events, expecting only public sector-driven solutions), and financial sustainability need to be addressed to provide sustainable solutions.

● Communities, the private sector and academia have to play a central role in the systems change approach to transform flash floods in hill torrent areas and rainfall-floods in urban and rural areas into economic opportunities, and hence their inclusion and active engagement in project design, implementation and management will be critical for sustainability purposes.

● Using natural systems and green infrastructure to promote nature-based solutions to better prepare for and respond to floods and droughts. The activity should work on low-cost community and private sector driven green infrastructure interventions to develop sustainable models.

● All risks associated with the proposed interventions, such as established water rights, land tenure rights, customary water rights, ownership of interventions, operation and maintenance, financial sustainability, and environmental safeguards have to be identified upfront, so that mitigation measures could be proposed and implemented effectively.

● Collaboration with the relevant public sector institutions, development partners and civil society organizations should be strengthened for informational and coordination purposes.

4. Theory of Change and Logical Framework

4.1. Theory of Change

IF communities participate in integrated hill torrent water governance and strengthened disaster preparedness activities, and IF urban groundwater recharge is supported, and IF water conservation opportunities are increased in rural areas to harness rainfall-floods, THEN there will be improved resilience to floods and droughts leading to increased economic opportunities for communities in focus areas.

4.2. Logical Framework

Goal: Improved resilience of communities to floods and droughts and increased economic opportunities of communities.

Intermediate Result 1 (IR-1): Integrated hill torrent water governance and strengthened disaster preparedness for floods and droughts

● Sub IR-1.1: Strengthened capacity of local stakeholders

● Sub IR-1.2: Policy, plans, and regulations developed and implemented

● Sub IR-1.3: Demonstration green infrastructure built

Inclusive Water Governance Activity

Intermediate Result 2 (IR-2): Groundwater recharge supported to increase urban groundwater storage

● Sub IR-2.1: Strengthened capacity of local stakeholders

● Sub IR-2.2: Policy, plans, and regulations developed and implemented

● Sub IR-2.3: Demonstration green infrastructure built

Intermediate Result 3 (IR-3): Increased water conservation opportunities in rural areas to harness rainfall-floods

● Sub IR-3.1: Strengthened capacity of local stakeholders

● Sub IR-3.2: Policy, plans, and regulations developed and implemented

● Sub IR-3.3: Demonstration green infrastructure built

Figure 1: Logical Framework

4.3. Expected Outcomes

The activity is expected to achieve a number of outcomes, including fostering community organization and resilience building, policy reforms, strengthening local water governance and management, increasing surface water storage capacity, increasing the recharge of groundwater, Inclusive Water Governance Activity reducing flood risks, increasing economic opportunities and ensuring the institutional and financial sustainability of these interventions.

5. Activity Interventions

The proposed interventions will improve resilience of communities to floods and droughts and increase economic opportunities by building more efficient and effective water governance systems through collaboration and interconnection of local communities, governments at all levels (relevant federal, provincial and local government agencies), the private sector and other actors. Across this work, the recipient will explore and implement locally-led, inclusive, cost-effective, innovative and sustainable climate resilient water management solutions. The activity will implement the following three broad-level interventions.

5.1. Integrated Hill Torrent Water Governance

The recipient will work in the selected sites in Sulaiman and Kirther hill-torrent region (marked in red on the map), an area that encompasses four provinces and includes districts especially impacted by hill-torrent floods.

The activity will strengthen basin-wide governance and disaster preparedness, engage with the communities to develop local adaptation plans, and facilitate construction of low-cost green infrastructure to better prepare communities to manage floods and drought.

Selection and prioritization of hill torrent should be done in close coordination with the provincial government and development partners who are also planning to work in hill torrents areas. Some of the considerations for selecting a basin include vulnerability, need, accessibility, security, local interest, and opportunity to leverage on-going community, governmental, private-sector, and donor activities. The same model could then be replicated to other prioritized hill torrents. Following are the two sub-categories under this intervention.

5.1.1. Basin Hill-Torrent management and Community Engagement

The main idea of hill torrent water management under this activity is to slow down water flows in the upper catchments, middle and lower sections of the basin by increasing surface and groundwater storage to reduce flood risks for downstream communities and increase opportunities for water-based livelihoods. It is critical that the proposed work explores and experiments with cost effective local solutions that keep front and center how the work could be institutionally and financially sustainable.

The activity will take a basin-wide (including sub-basins) integrated and inclusive governance approach for improved hill torrent water management. The activity will assist in developing

Inclusive Water Governance Activity mechanisms for resolving conflicts over water access and usage, promoting peaceful coexistence and dispute resolution, and protecting water rights.

A critical aspect of this work is that it will involve the whole hill torrent basin as one unit. The recipient will engage local communities to support low-cost water management activities in the watershed level (upper section of the hill torrent basin), the command area (the middle section of hill torrent basin), and in the drainage area (the lower section of the hill torrent basin).

Recognizing the fact that a hill torrent basin may cross provincial and administrative boundaries, the recipient will involve all relevant stakeholders for effective basin governance structure.

The activity will provide technical and limited financial support (e.g., grants) to communities to mobilize local resources and additional financing from the private sector, for low-cost water management solutions. The proposed work will creatively explore the financial and administrative sustainability of the interventions addressing community needs. The activity must work with vulnerable, underrepresented, and marginalized groups, to ensure that they participate in the proposed interventions at all stages of the activity implementation. This includes engagement with youth, women, religious minorities and persons with disabilities.

5.1.2. Disaster Preparedness and Risk Reduction

The IWGA activity will work with communities and relevant public sector institutions to improve disaster preparedness and risk reduction. Tapping their institutional knowledge is critical for success. Additionally, to strengthen disaster preparedness, the activity is expected to strengthen the linkages between local communities and relevant government departments. Finally, the activity is expected to help ensure that there is a reliable weather and flood forecasting system in the selected water basin that communities understand and trust.

It is critical that women and other marginalized groups participate in planning, understand the early-warning system, and know what to do when a flood or drought hits. The activity will work with women and minorities, highlighting their special needs and circumstances. The activity will identify challenges during emergencies and how they may be addressed through local networks and connections to local government and response teams.

5.2. Urban Groundwater Recharge

Water table levels are rapidly falling in urban areas (including peri-urban areas) due to excessive use of groundwater for growing populations. As such it is important that urban areas establish a network of passive water recharge structures, in order to harness rainfall and increase the flow of water into the aquifers.

The recipient will assess potential urban areas in which to work, and will select initially one urban area based on local need, popular demand from local community and likelihood of success. The recipient will work with local governments, communities, private sector, housing societies, and other stakeholders to build their capacity and provide technical assistance. The activity will provide limited financial support for the construction of recharge wells for

Inclusive Water Governance Activity demonstration purposes and seek to tap additional financing from local stakeholders for replicating the intervention.

In addition to facilitating the construction of recharge wells, the activity will provide technical support for policy reforms, developing new regulations, as needed, and supporting the implementation of any existing policies and regulations around groundwater recharge and groundwater use for achieving better Water, Sanitation and Hygiene (WASH) outcomes.

The activity will also provide technical assistance to communities, government, especially local governments, housing societies, commercial centers and water user organizations on demand basis for improved water governance processes and devising of climate resilient water management plans. The activity will work with the private sector to build their capacity in provision of services related to rainwater harvesting for groundwater recharge. A system change approach will be adopted in the planning process to manage local water systems (municipal, common water pond and groundwater wells) on a sustainable basis.

5.3. Water Storage in Rural Areas

Local communities and the private sector have taken some initiatives to construct small ponds to provide water for drinking, sanitation and hygiene (e.g., WASH related services) and agricultural purposes. The activity will work with local communities and the private sector to mobilize local institutions and resources for the improvement, rehabilitation, restoration and construction of small-scale low-cost water ponds, reservoirs, wetlands, lakes, diversion and conveyance structures. The activity will provide technical assistance and limited bridge financing for demonstration purposes to develop and upscale sustainable models for increasing surface and groundwater storage capacity and improve water productivity for economic (e.g. agriculture, forestry) and social outcomes (e.g., WASH).

6. Policies and Guiding documents

The Activity directly contributes to USAID’s 2023-2028 Country Development Cooperation Strategy (CDCS), and aligns with the U.S. Government Global Water Strategy (2022-2027), and the USAID Climate Strategy (2022-30). The activity will promote and implement USAID’s localization approach and A&A strategy focusing on locally led inclusive development by strengthening local systems and capacity. Similarly, the activity is aligned with Pakistan’s National Water Policy (2018), National Climate Change Policy (2021), Nationally Determined Contributions (2021), National Action Plan (2023) and the Living Indus Initiative (2022). Proper water management is also critical for the achievement of Sustainable Development Goal 6 and 16 to ensure the availability and sustainable management of water and sanitation for all by 2030.

Additionally, this activity will contribute to the Government of Pakistan’s climate action plan for adaptation and mitigation, and apply Resilient, Recovery, Rehabilitation, and Reconstruction Framework (4RF).

https://drive.google.com/drive/folders/1kq70s6AsMNTHqAl5a41yXfxwMovNuxqI https://drive.google.com/drive/folders/1kq70s6AsMNTHqAl5a41yXfxwMovNuxqI https://www.usaid.gov/sites/default/files/2022-12/USAIDs_Localization_Vision-508.pdf https://www.usaid.gov/sites/default/files/2023-03/USAID-AA-Strategy-Report.pdf https://water.muet.edu.pk/wp-content/uploads/2019/03/National-Water-Policy.pdf https://water.muet.edu.pk/wp-content/uploads/2019/03/National-Water-Policy.pdf https://mocc.gov.pk/SiteImage/Policy/NCCP%20Report.pdf https://unfccc.int/sites/default/files/NDC/2022-06/Pakistan%20Updated%20NDC%202021.pdf https://unfccc.int/sites/default/files/NDC/2022-06/Pakistan%20Updated%20NDC%202021.pdf https://drive.google.com/drive/folders/1kq70s6AsMNTHqAl5a41yXfxwMovNuxqI https://drive.google.com/drive/folders/1kq70s6AsMNTHqAl5a41yXfxwMovNuxqI https://www.undp.org/pakistan/publications/pakistan-floods-2022-resilient-recovery-rehabilitation-and-reconstruction-framework-4rf https://www.undp.org/pakistan/publications/pakistan-floods-2022-resilient-recovery-rehabilitation-and-reconstruction-framework-4rf

Inclusive Water Governance Activity

7. Geographic Focus

The activity will work, nationwide, with stakeholders in areas vulnerable to frequent floods, droughts and chronic or recurring water scarcity, and are faced with extreme poverty and geographic, social and political inequality. The activity will work in areas where there is a community demand and potential. For the hill torrent intervention, the recipient will work initially in one hill torrent basin in either the Sulaiman or Kirther ranges. For urban water recharge, the recipient will initially work in one city including peri-urban areas. Similarly, for the rural water storage, the recipient will initially work in one selected rural area. All the three interventions could be replicated in other areas, subject to time and funds availability.

8. Strategic Considerations

8.1. Gender

Promoting gender equality and advancing the status of women and girls is vital to achieving USAID’s development objectives. USAID policy requires all applicants to mainstream and integrate gender into their interventions. Therefore, the applicant will be expected to demonstrate compliance with USAID Policy ADS 205, and should explicitly state how this activity supports the gender policies and strategies of the United States, including USAID’s 2023 Gender Equality and Women’s Empowerment Policy, as well as gender policies and strategies of the Government of Pakistan.

The IWGA activity will support socially, economically, geographically and politically marginalized individuals, people with disabilities, and women in hill torrents and flood- and drought-prone areas, both urban and rural. The applicant shall identify interventions that empower marginalized communities through better protection against flood, increased access to land and water resources, livelihood opportunities, adoption of advanced technology, and promotion of sustainable agricultural practices, capacity building and awareness campaigns. The applicant will also identify opportunities for inclusion of commonly under-represented social groups and marginalized communities including persons with disabilities, minorities, and people who identify as transgenders.

The proposed work should conduct a gender analysis to identify factors limiting inclusion of women and girls in water governance-related activities in the areas of the activity’s work. The proposed work must track the differential impacts of the project’s work on males and females, with relevant indicators disaggregated by gender.

8.2. Local Systems

The activity will work with local communities and institutions, engaging them in design, implementation and operation of water governance systems to strengthen water management.

The activity must incorporate guidance from USAID’s localization policy and Local Capacity Strengthening Policy. The activity should work with NGOs, preferably local, to strengthen https://www.usaid.gov/sites/default/files/2023-04/205.pdf https://www.usaid.gov/sites/default/files/2023-03/2023_Gender%20Policy_508.pdf https://www.usaid.gov/sites/default/files/2023-03/2023_Gender%20Policy_508.pdf https://www.usaid.gov/localization https://www.usaid.gov/sites/default/files/2022-10/LCS-Policy-2022-10-17.pdf https://www.usaid.gov/sites/default/files/2022-10/LCS-Policy-2022-10-17.pdf

Inclusive Water Governance Activity community mobilization and participation in watershed management and command area development, agricultural and forestry interventions.

Consistent with Program Cycle principles defined in USAD ADS 201.3.1.2, the interventions should not only be designed to achieve clear and measurable results, but also should be aimed at strengthening local systems so that local actors continue to sustain key results after the activity ends. USAID activities should be designed to align with the priorities of local actors;

leverage local resources; and increase local implementation over time to sustain positive changes. Use of local systems is not just limited to direct funding of partner governments or local NGOs; it also includes building the capacity of partner government service providers or local NGOs, leveraging USAID’s influence and convening power, facilitating local service delivery, and mobilizing domestic resources, among other tactics.

8.3. Youth and Marginalized Communities

Youth is a cross-cutting issue identified in the USAID/Pakistan’s Country Development and Cooperation Strategy (CDCS), and is considered a key focus group for USAID/Pakistan. The activity must incorporate guidance from USAID’s Youth in Development Policy (2022). Tapping into the potential of unemployed and marginalized youth in the rural areas is critical as youth can be the agents of change and are more willing to take risks with regards to adoption of new practices and technologies, use of digital technologies and innovation.

In addition, it is critical to promote the inclusion of individuals from marginalized communities in order to achieve USAID’s development objectives. As such, the activity must also incorporate guidance from USAID’s Diversity, Equity and Inclusion Strategy. The proposal should identify opportunities for inclusion of commonly under-represented social groups and marginalized communities, including persons with disabilities, minorities, and people who identify as transgenders.

8.4. Climate Change Integration

Climate change is a cross cutting issue that can have significant impacts on regional, national, and local development efforts in all sectors. Executive Order 13677 requires all U.S. Agencies to factor climate change into their foreign assistance planning and manage the associated climate risks.

The IWGA activity is primarily an adaptation intervention to build resilience of local communities, public and private sectors and physical infrastructure to adapt to the climate change related uncertainties such as floods and droughts. The activity should integrate climate considerations into local water governance in areas vulnerable to frequent floods and water scarcity. Interventions should address current and anticipated climate risks and facilitate vulnerable communities to more fully participate in community development decisions and democratic processes, while strengthening multiple governance actors’ accountability to communities.

https://www.usaid.gov/sites/default/files/2022-12/201.pdf https://www.usaid.gov/sites/default/files/2022-12/USAID-Youth-in-Development-Policy-2022-Update-508.pdf https://www.usaid.gov/sites/default/files/2022-05/USAID_DEI_Strategy_Summary_-_Final.pdf https://obamawhitehouse.archives.gov/the-press-office/2014/09/23/executive-order-climate-resilient-international-development

Inclusive Water Governance Activity

8.5. Environmental Compliance

The activity must follow USAID’s 22 CFR 216 Environmental Compliance procedures as outlined in the Initial Environmental Examination (IEE), approved on June 3, 2024 and will expire on December 31, 2030 (IEE No. Asia 24-078). The threshold determination is categorical exclusion for soft activities (capacity building and policy support) and Negative Determination with Conditions for green infrastructure interventions (rehabilitation and construction of small-scale community-owned water ponds and recharge wells).

Climate risk management (CRM) is an integral part of environmental compliance. CRM is the process of assessing, addressing and adaptively managing climate risks that may impact the ability of USAID programs to achieve their objectives (see USAID’s ADS 201mat, ADS 201mal, and USAID’s Climate Risk Screening and Management Tools that facilitate assessing and addressing climate risks). All risks identified in the CRM will be addressed by the recipient and reported as part of the environmental compliance reporting.

8.6. Host Government, Donor, and Stakeholder Collaboration

To incorporate local concerns and ideas into decision-making, as well as to improve coordination within the government, the activity should work with relevant federal, provincial and district government departments. In addition, the activity should facilitate leveraging governmental resources, to implement worthwhile activities identified by local communities.

8.7. Private Sector Engagement

The recipient will be expected to work as much as possible with the private sector, in order to leverage private sector expertise, innovation, and resources to address water sector issues in selected areas. The activity should seek private sector-led opportunities to increase the production and adoption of climate-resilient water and agriculture technologies/ICT tools.

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https://www.climatelinks.org/climate-risk-management https://www.climatelinks.org/resources/climate-change-usaid-strategies-mandatory-reference-ads-chapter-201 https://www.climatelinks.org/resources/climate-risk-management-usaid-projects-and-activities-mandatory-reference-ads-chapter-201 https://www.climatelinks.org/resources/climate-risk-screening-and-management-tools

Inclusive Water Governance Activity

SECTION B: FEDERAL AWARD INFORMATION

1. Estimate of Funds Available and Number of Awards Contemplated

USAID intends to award a Cooperative Agreement pursuant to this notice of funding opportunity.

Subject to funding availability and at the discretion of the Agency, USAID intends to provide $14 million in total USAID funding over a 5 year period. However, USAID reserves the right to change the type of award, if determined to be more appropriate.

2. Start Date and Period of Performance for Federal Awards

The anticipated period of performance is five years. The start date will be determined prior to issuance of the award.

3. Substantial Involvement

Consistent with ADS 303.3.11, USAID/Pakistan anticipates a close working partnership with the recipient to achieve the objectives of this Agreement. The specific areas of USAID involvement will include, but are not limited to:

1. AOR approval of the

● Annual Work Plans,

● Annual Progress Reports,

● Quarterly Progress Reports,

● Final Completion Report and

● Any other study/assessment/baseline reports, capacity building or training plan, exchange tours, formation of stakeholders committee(s) or forums, computer models and policy documents prepared by the recipient and/or its subcontractors

● Success stories

2. AOR approval of selection and replacement of Key Personnel.

3. AOR approval of small grants for communities and sub-awards including grant manual, concept reviews and clearance from the vetting office, if the total amount of the subaward exceeds $25k

4. AOR approval of the Monitoring, Evaluation and Learning (MEL) Plan; and will review and approve final versions of all print or electronic publications before release for publication.

USAID may engage in discussion and/or provide technical guidance to the recipient;

monitor performance quality; and ensure that the activity is aligned with the policies and strategies of USAID.

5. USAID third party monitoring and evaluation of the activity interventions; The Recipient shall provide full support to USAID approved third party for monitoring and evaluation of activity interventions, access to activity staff, documents and geographical sites.

Inclusive Water Governance Activity

6. Collaborative involvement in selection of advisory/steering committee members, if the program will establish an advisory committee that provides advice to the recipient. USAID may participate as a member of this committee as well. Advisory committees must only deal with programmatic or technical issues and not routine administrative matters.

5. Authorized Geographic Code

The geographic code for the procurement of commodities and services under this program is 937 (the United States, the recipient country, and developing countries other than advanced developing countries, but excluding any country that is a prohibited source).

6. Nature of the Relationship between USAID and the Recipient

The principal purpose of the relationship with the recipient and under the subject program is to transfer funds to accomplish a public purpose of support or stimulation of the Inclusive Water Governance Activity which is authorized by Federal statute. The successful recipient will be responsible for ensuring the achievement of the program objectives and the efficient and effective administration of the award through the application of sound management practices.

The recipient will assume responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award.

7. Selection of Instrument

The USAID design team consists of staff from the Climate and Sustainable Growth office (CSG) and Democracy Rights and Governance (DRG). Working in partnership across technical offices, the design team conducted site visits to areas in Punjab, Sindh and Khyber Pakhtunkhwa which were vulnerable to floods and climate change. They held extensive consultations with affected communities and the public and private sector stakeholders. The design team with the help of consultants from Washington DC held over fifty consultations with key stakeholders, including a wide range of organizations working in the field of water management, agriculture, environment, climate crisis, and disaster preparedness.

Additionally, the design team with the assistance of OAA, conducted market research, through a Request For Information (RFI), to determine if sources capable of satisfying the agency’s requirements exist. The purpose of this rigorous market research was to explore the market of actors and institutions with experience addressing the climate crisis, assess capabilities of for-profit and nonprofit organizations, and other institutions operating in similar thematic areas of water governance; and learn about stakeholders’ perspective on challenges and feasible solutions for more effective water governance and management. A total of 24 national and international organizations submitted their responses to RFI, which were reviewed by the design team. Key findings are:

● All organizations national and international demonstrated experience working in

Inclusive Water Governance Activity different geographic areas of Pakistan on thematic areas related to climate resilience, community engagement, water governance and management.

● All organizations have expertise to conduct technical feasibility studies, assessments and evidence-based research; provide technical assistance to the government; and engage the private sector.

● Some local organizations demonstrated experience engaging local government, local communities, youth and women. Several organizations indicated substantial experience working with local communities as well as diverse outreach at the grassroot level in Pakistan. Furthermore, they have also worked on climate action and emergency response in Pakistan. It is noted that several organizations have already worked on development projects supported by USAID or other donors. They have experience working in close collaboration with other local and international organizations to build the capacity of institutions and communities and sustain program results.

After conducting extensive market research, the Design Team learned and determined that the purpose of this activity is aligned with the mandate of local and international organizations which are working in similar areas to advance their goal. After the market research it was noted that Agency’s programmatic needs would be best met by providing funds support to another organization, who then acts as a pass-through entity to provide a benefit to a third party or the beneficiaries. The IWGA activity will support local adaptation plans, policy reforms and climate resilient water management interventions by the local communities and the public and the private sectors. Subsequently, the team determined that assistance, particularly a cooperative agreement, would be the most effective mechanism for this activity.

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Inclusive Water Governance Activity

SECTION C: ELIGIBILITY INFORMATION

1. Eligible Applicants

Eligibility for this NOFO is restricted to local organizations or local entities. USAID defines a “local entity” as an individual, a corporation, a nonprofit organization, or another body of persons that:

(1) Is legally organized under the laws of; and

(2) Has as its principal place of business or operations in; and

(3) Is

(A) majority owned by individuals who are citizens or lawful permanent residents of; and

(B) managed by a governing body the majority of who are citizens or lawful permanent residents of the country receiving assistance.

For purposes of this definition, ‘majority owned’ and ‘managed by’ include, without limitation, beneficiary interests and the power, either directly or indirectly, whether exercised or exercisable, to control the election, appointment, or tenure of the organization's managers or a majority of the organization's governing body by any means.

USAID welcomes applications from organizations that have not previously received financial assistance from USAID.

Faith-based organizations are eligible to apply for federal financial assistance on the same basis as any other organization and are subject to the protections and requirements of Federal law.

2. Cost Sharing or Matching

Cost sharing is not a requirement under this NOFO.

3. Local Registration Requirement

Applicants are expected to comply with host government regulations, ensuring adherence to necessary laws and requirements for operations in Pakistan. This includes, but is not limited to, the capability to operate lawfully within the country. Local institutions or affiliates of international organizations must have the ability to operate effectively in Pakistan, either through prior legal registration in the country or by demonstrating the means to establish necessary operations post-award, ensuring compliance with local laws and regulations for effective implementation within Pakistan.

4. Number of Applications

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The prime applicant may submit only one application. An organization can submit applications as a sub-partner for multiple prime applications. Applicants are directed to review the other requirements for applications specified herein, including, but not limited to Section D and E.

5. Other

Further, if after carrying out discussions, USAID is unable to agree with the apparently successful applicant's proposed cost; the applicant can be eliminated from further consideration and USAID will initiate discussion with the next applicant on the final selection list.

Inclusive Water Governance Activity

SECTION D: APPLICATION AND SUBMISSION INFORMATION

1. Agency Point of Contact

Name: Muhammad Ali Bilal Title: Administrative Agreement Officer Email:MBilal@usaid.gov Mail Address: USAID, U.S Embassy, Diplomatic Enclave, Ramna 5, Islamabad, Pakistan.

Name: Sufyan Javed Title: Acquisition & Assistance Specialist Email:SJaved@usaid.gov Mail Address: USAID, U.S Embassy, Diplomatic Enclave, Ramna 5, Islamabad, Pakistan.

Name: Aaqib Hameed Title: Acquisition & Assistance Specialist Email: Aahameed@usaid.gov Mail Address: USAID, U.S Embassy, Diplomatic Enclave, Ramna 5, Islamabad, Pakistan.

2. Questions and Answers

Questions regarding this NOFO should be submitted by email to the agency point of contact mentioned above no later than the date and time indicated on the cover letter, as amended. Any information given to a prospective applicant concerning this NOFO will be furnished promptly to all other prospective applicants as an amendment to this NOFO, if that information is necessary in submitting applications or if the lack of it would be prejudicial to any other prospective applicant.

3. General Content and Form of Application

The applicant is expected to review, understand, and comply with all aspects of this NOFO, and must furnish the information required by this NOFO.

Preparation of Applications:

Each applicant must furnish the information required by this NOFO. Applications must be submitted in two separate parts: the Technical Application and the Business (Cost) Application.

This subsection addresses general content requirements applying to the full application. Please see subsections 5 and 6, below, for information on the content specific to the Technical and Business (Cost) applications. The Technical application must address technical aspects only while the Business (Cost) Application must present the costs, and address risk and other related issues.

mailto:Aahameed@usaid.gov

Inclusive Water Governance Activity

Both the Technical and Business (Cost) Applications must include a cover page containing the following information:

● Name of the Prime organization(s) submitting the application;

● Name and addresses of any partner/sub-awardee organizations;

● Identification and signature of the primary contact person (by name, title, organization, mailing address, telephone number and email address) and the identification of the alternate contact person (by name, title, organization, mailing address, telephone number and email address);

● UEI for the Prime Organization;

● Activity name

● Notice of Funding Opportunity number

Any erasures or other changes to the application must be initiated by the person signing the application. Applications signed by an agent on behalf of the applicant must be accompanied by evidence of that agent’s authority, unless that evidence has been previously furnished to the issuing office.

Applicants may choose to submit a cover letter in addition to the cover pages, but it will serve only as a transmittal letter to the Agreement Officer. The cover letter will not be reviewed as part of the merit review criteria.

Applications must comply with the following:

● USAID will not review any pages in excess of the page limits noted in the subsequent sections. Please ensure that applications comply with the page limitations.

● Written in English.

● Use standard A4 paper size, single sided, single-spaced, 12 point Calibri font, 1” margins, left justification and headers and/or footers on each page including consecutive page numbers, date of submission, and applicant’s name.

● a 10 point font can be used for graphs and charts. Tables however, must comply with the 12 point Calibri font requirement.

● Submitted via Microsoft Word or PDF formats, except budget files which must be submitted in Microsoft Excel.

● The estimated start date identified in Section B of this NOFO must be used in the cost application.

● The technical application must be a searchable and editable Word or PDF format as appropriate.

● The Cost Schedule must include an Excel spreadsheet with all cells unlocked and no hidden formulas or sheets. A PDF version of the Excel spreadsheet may be

Inclusive Water Governance Activity submitted in addition to the Excel version at the applicant’s discretion, however, the official cost application submission is the unlocked Excel version.

Applicants must review, understand, and comply with all aspects of this NOFO. Failure to do so may be considered as being non-responsive and may be evaluated accordingly. Applicants should retain a copy of the application and all enclosures for their records.

4. Application Submission Procedures

Applications in response to this NOFO must be submitted no later than the time and date mentioned on the cover letter of this NOFO. Late applications will not be reviewed nor considered. Applicants must retain proof of timely delivery in the form of system generated documentation of delivery receipt date and time/confirmation from the receiving office/certified mail receipt.

Applications…