Addendum 1 USAID_South Africa_Electricity Coop.docx

ANNOUNCEMENT

CALL FOR CDP CONCEPT PAPERS TO SUPPORT DEVELOPMENT OF ELECTRIC COOPERATIVES AND CAPACITY BUILDING FOR RURAL ELECTRIFICATION AGENCIES IN SUB-SAHARAN AFRICA

ADDENDUM TO

COOPERATIVE DEVELOPMENT PROGRAM (CDP) ANNUAL PROGRAM STATEMENT

APS No.: 7200AA18APS00002

PLEASE NOTE: This is an addendum to an existing announcement. All interested organizations should carefully review both this addendum AND the full announcement, which can be found here: https://www.grants.gov/web/grants/search-grants.html?keywords=7200AA18APS00002.

Important information contained in the full worldwide announcement is not repeated in this specific addendum.

This program is authorized in accordance with Part 1 of the Foreign Assistance Act of 1961, as amended.

Through this Addendum to the 2019-2020 Cooperative Development Program (CDP) Annual Program Statement (APS) No. 7200AA18APS00002 (the CDP APS), Power Africa Coordinator’s Office, housed at USAID, is making a special call for the submission of Concept Papers focused on assisting the African Development Bank (AfDB) to develop investment strategies, financial plans and capacity-building activities to facilitate the establishment and expansion of electricity cooperatives for improved rural electrification in sub-Saharan Africa.

The specific objectives are to:

1. According to selection criteria agreed to with the AfDB and host country governments, identify suitable sites in underserved or unserved rural areas for community-owned power supply systems and potential system options that comply with relevant country regulations;

2. Conduct feasibility assessments and develop business plans for identified community-owned utilities (e.g. cooperatives);

3. Compile energy consumption and expenditure/willingness to pay data to support both on-grid and off-grid electrification investments;

4. Complete implementation and community engagement strategies for cooperatives as well as detailed development plans for a complete program of services to support cooperatives for the implementing agency, e.g. the Rural Electrification Agency (REA);

5. Provide targeted training and capacity building for cooperatives and REAs;

6. Identify sources of financing for cooperatives to fund initial low voltage (LV) infrastructure, power supply systems, metering, and service drops, as well as operational costs, e.g. staff, vehicles, equipment and maintenance materials;

7. Create a plan to develop, promote and support cooperatives that engage in commercializing energy to member-consumers;

8. Develop a communication program to train cooperatives on productive uses of electricity and promotion programs to educate on-grid and off-grid consumers on the potential for electrification to have a positive economic impact on livelihoods.

Activities will take place in mutually agreed upon countries in sub-Saharan Africa.

The Power Africa Coordinator’s Office will manage the review and procurement of activities that may result from qualified concept notes.

Unless otherwise stated herein, all terms and conditions of the CDP APS FY18 apply (https://www.grants.gov/web/grants/search-grants.html?keywords=7200AA18APS00002).

I. Background

In April through July 2019, the African Development Bank (AfDB) undertook the following activities to guide the engagement of cooperatives in expanding rural electricity service provision in Nigeria and Ethiopia:

1. Collect and review information on policy and legislation related to cooperative formation, registration and business engagement in Nigeria and Ethiopia for the purpose of evaluating the viability of expanding rural electric cooperative participation in electricity service provision for grid and off-grid electrification. This analysis includes socio-economic factors affecting cooperatives; technical issues and challenges and the extent to which affordability may impact business viability.

2. Develop a toolbox of resources that can be used to support downstream activities related to cooperative engagement in rural electrification including creation of electric cooperatives; governance and management of electric cooperatives; evaluation of financial viability of cooperatives using market and affordability data; and preparation and presentation of a business plan template.

3. Present findings of the feasibility analyses, affordability issues, technical options, financial results and productive use program needs in a stakeholder workshop.

This activity will follow-on the above activities by launching a Phase 2 of the program targeted at facilitating roll-out of electricity cooperatives in specific mutually agreed upon pilot countries. The goal will be ensuring that cooperatives are sustainable and conducive for private sector participation. A similar program is already beginning in Uganda with support from Uganda’s Rural Electrification Agency (REA) and Power Africa. Lessons learned from these engagements will prove useful in rolling out cooperatives in other countries.

II. Solicitation

This addendum is issued for concept papers describing how to accomplish the specific objectives listed above.

III. Evaluation Criteria

Proposed concepts will be evaluated based on the general criteria set forth in the CDP APS in Section V: Concept Paper and Full Application Review Criteria. As stated in APS No. 7200AA18APS00002, USAID has limited eligibility for US cooperatives or cooperative development organizations, requiring the following:

● U.S. cooperative or an organization with substantial membership and/or financial links to recognized U.S. cooperatives and/or their associations; and

● A demonstrated track record of not less than five years in the planning, management, monitoring, and evaluation of overseas cooperative development programs.

In addition, the following criteria will also be used:

● Demonstrated knowledge of and experience with developing investment plans, ideally focused on rural electrification; and

● Experience implementing similar work in developing countries.

Proposed concepts should be consistent with USAID legal and policy restrictions, including those set forth in USAID’s Automated Directives System (ADS) and in the Foreign Assistance Act of 1961.

IV. Application Instructions and Review Process

The Power Africa Coordinator’s Office is responsible for the review process and management of any award(s) issued under this Addendum. Applicants are required to follow the Concept Paper instructions set forth in the CDP APS and submit Concept Papers using the Concept Template.

Before submitting a Concept Paper, prospective applicants should contact Christina Cairns at ccairns@usaid.gov for Power Africa. This USAID Point of Contact can discuss the extent to which a proposed idea is appropriate and aligns with Power Africa’s goals.

Under the CDP APS, the USAID Point of Contact can have robust and extensive discussions with the applicant with regard to potential program ideas and activities. Such discussions help foster the co-creation that is core to the CDP approach.

The completed Concept Paper Template (including the Concept Paper and required Supporting Information) should be sent to USAID/Power Africa through Christina Cairns with a copy to cdp-aps@usaid.gov.

Concept papers will be reviewed on a rolling basis. After review by Power Africa, applicants will receive instructions from USAID on whether to proceed with a full application.

V. Questions and Further Assistance

Questions regarding the substance and objectives of this addendum should be directed to Christina Cairns at ccairns@usaid.gov, with copy to cdp-aps@usaid.gov.

Questions regarding the substance and terms of the 2018-2019 CDP APS should be directed to cdp-aps@usaid.gov.

For additional information regarding guidelines and procedures to submit a concept paper, please refer to the CDP APS which can be found at the following website: https://www.grants.gov/web/grants/search-grants.html?keywords=7200AA18APS00002.

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