APS 72051921APS00001 Addendum4 Private Sector Engagement (Final).pdf

El Salvador Country Development Cooperation Strategy (CDCS) Annual Program

Statement (APS) No.: 72051921APS00001- Addendum 4

Issuance Date: September 28, 2021 Deadline for Questions: October 13, 2021 17:00 (El Salvador) Closing Date: September 28, 2022 Concept Paper Submission Closing Dates:

First Round: November 15, 2021 08:00 (El Salvador) Following Rounds: To be determined

Subject: El Salvador Country Development Cooperation Strategy (CDCS) Annual

Program Statement (APS) No.: 72051921APS00001

Program Title: Private Sector Engagement Activity - Addendum 4

Catalog of Federal Domestic Assistance: 98.001, Foreign Assistance for Programs Overseas

Pursuant to the Foreign Assistance Act of 1961, as amended, the United States Government, as represented by the U.S. Agency for International Development (USAID), USAID/El Salvador, is announcing the Private Sector Engagement Activity Addendum to the USAID/El Salvador Country Development Cooperation Strategy (CDCS) Annual Program Statement (APS) No.

72051921APS00001, hereafter known as the CDCS APS.

Through this Private Sector Engagement Activity Addendum to the CDCS APS, USAID/El Salvador seeks to partner with the private sector as a means to increase the sustainable impact of USAID’s development assistance programs and more effectively address critical development challenges in El Salvador or within the region, including El Salvador, Guatemala, and Honduras.

The activity will contribute to USAID/El Salvador’s CDCS goal to “Reduce the Drivers of Irregular Migration by Fostering a More Self-Reliant El Salvador: Secure, Prosperous and Well- Governed”. Further, this activity will contribute to achieving regional goals of the U.S.

Government’s Root Causes of Migration Strategy (RCS).

Subject to the availability of funds, USAID/El Salvador anticipates investing approximately $50,000,000 in this activity in support of one or more awards. USAID/El Salvador reserves the right to award more or fewer awards than this estimate and is not obligated to make any awards.

USAID/El Salvador is issuing this Addendum pursuant to the Foreign Assistance Act (FAA) of 1961, as amended. Any potential resulting award(s) will be subject to 2 CFR 700 and 2 CFR 200

– Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and USAID’s Standard Provisions for U.S and Non-U.S Based organizations per ADS 303.

https://www.usaid.gov/

It is the responsibility of the Applicant to ensure that the entire CDCS APS and Addendum opportunity has been downloaded from www.grants.gov and USAID/El Salvador bears no responsibility for data errors resulting from transmission or conversion process. If you have difficulty accessing the CDCS APS, please contact the grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

Issuance of this Addendum does not constitute an award or commitment on the part of the U.S.

Government to make an award, nor does it commit the U.S. Government to pay for costs incurred in the preparation and submission of a Concept Paper or Application(s). Should you have any questions about this Addendum, please contact us at esalliancebuilding@usaid.gov.

Thank you for your interest in USAID programs.

Sincerely, Albert E. Carrera Agreement Officer Regional Office of Acquisition and Assistance USAID/El Salvador mailto:support@grants.gov mailto:esalliancebuilding@usaid.gov

U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT

ANNOUNCEMENT

CALL FOR CONCEPT PAPERS

El Salvador Private Sector Engagement Activity Addendum

UNDER EXISTING

USAID/El Salvador Country Development Cooperation Strategy (CDCS) Annual Program Statement (APS)

No.: 72051921APS00001

PLEASE NOTE: This is an Addendum to an existing announcement. All interested organizations should carefully review both this Private Sector Engagement Addendum AND the full announcement, which can be found here: https://www.grants.gov/web/grants/view-opportunity.html?oppId=332969.

Important information contained in the full worldwide announcement is not repeated in the Private Sector Engagement Addendum.

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

Through the Private Sector Engagement Activity Addendum to the USAID/El Salvador CDCS APS No.72051921APS00001, USAID/El Salvador will pursue and support partnerships with the private sector as a means to increase the sustainable impact of USAID’s development assistance programs and more effectively address critical development challenges in El Salvador or within the region, including El Salvador, Guatemala, and Honduras. .

Subject to the availability of funds, USAID/El Salvador anticipates investing approximately $50,000,000 in this area and supporting one or more awards. USAID/El Salvador reserves the right to award more or fewer awards than this estimate and is not obligated to make any awards.

Unless otherwise stated herein, all terms and conditions of the CDCS APS apply (https://www.grants.gov/web/grants/view-opportunity.html?oppId=332969).

https://www.grants.gov/web/grants/view-opportunity.html?oppId=332969

TABLE OF CONTENTS

LIST OF ACRONYMS 5

SECTION A: PROGRAM DESCRIPTION 6

SECTION B: FEDERAL AWARD INFORMATION 21

SECTION C: ELIGIBILITY INFORMATION 24

SECTION D: APPLICATION AND SUBMISSION INFORMATION 27

SECTION E: APPLICATION REVIEW INFORMATION 32

SECTION F: FEDERAL AWARD AND ADMINISTRATION INFORMATION 37

SECTION G: FEDERAL AWARDING AGENCY CONTACT(S) 38

SECTION H: OTHER INFORMATION 39

ATTACHMENT 1 40

ATTACHMENT 2 42

LIST OF ACRONYMS

ADS: Automated Directives Systems AO: Agreement Officer AOR: Agreement Officer Representative APS: Annual Program Statement CDCS: Country Development Cooperation Strategy CLA: Collaborating, learning and adapting DO: Development Objective DOC: Development Outreach and Communications GOES: Government of El Salvador NPI: New Partnerships Initiative NOFO: Notice of Funding Opportunity PSE: Private Sector Engagement RSC: Root Causes of Migration Strategy USG: United States Government

SECTION A: PROGRAM DESCRIPTION

A.1. Background USAID/El Salvador and USAID Central American Regional Mission (USAID/CAM), or the Mission hereafter, is focused on addressing U.S. foreign policy priorities and related development challenges in the region (El Salvador, Guatemala, and Honduras), including:

ineffective governance; the evolving security situation, specifically the pervasive crime and violence affecting the countries of Guatemala, El Salvador, and Honduras; slow economic growth and integration; lack of economic opportunities for likely migrants; low-quality education for the most vulnerable; and climate change and high vulnerability to natural disasters.

Combined, these issues are contributing to the recent surge in migration from El Salvador, Guatemala, and Honduras to the U.S., which indicates that the serious and long-standing challenges in the region are worsening.

The response to these challenges should be done in a holistic way that recognizes the interrelated nature of these issues is paramount. Programming that eschews traditional sectoral focus, and contemplates the linkages between citizen security, governance, economic growth, education, and global climate change, will enable the Mission to contribute to comprehensive regional change. This Private Sector Engagement (PSE) addendum seeks partnerships to address the Root Causes of migration in El Salvador, Guatemala, and Honduras.

Therefore, partnerships developed under this PSE Addendum will support one or more of USAID’s core development initiatives and advance the development objectives and priorities articulated in the El Salvador Country Development Cooperation Strategy (CDCS) and the U.S.

Government’s Root Causes of Migration Strategy (RCS). Prospective partners should carefully review those initiatives, objectives and priorities in order to determine whether and how business and USAID interests might intersect.

A.2. Geographic Coverage

To address the challenges mentioned above, the Mission identifies opportunities to expand engagement with the private sector in order to improve development outcomes for El Salvador and/or regionally in El Salvador, Guatemala, and Honduras.

Notably, for programming in El Salvador, the El Salvador CDCS focuses geographically in three main urban hubs: San Salvador, San Miguel and Santa Ana, which account for the majority of illegal migration and insecurity in the country. As such, this activity seeks to concentrate bilateral efforts in those areas; however, work in other geographic areas is NOT excluded and will be considered.

A.3. Focus on Partnerships Working directly with local and international private sector enterprises leads to improved development results. Private sector partners add value to USAID programs through their resources, technologies, networks, access to markets, specialized expertise, and knowledge.

Furthermore, they create jobs in areas affected by irregular migration and the drivers that cause https://www.usaid.gov/el-salvador/cdcs https://www.whitehouse.gov/wp-content/uploads/2021/07/Root-Causes-Strategy.pdf it, thus reducing migratory pressures for those irregularly seeking expanded economic opportunities in the United States. Partnerships with the private sector also create opportunities for innovation and effective market-led development, and are integral to USAID’s efforts to increase the likelihood of sustained impact and self-reliance after support ends.

Through this Addendum, the Mission seeks to pursue and support partnerships with the private sector1 as a means to increase the sustainable impact of USAID’s development assistance programs and more effectively address critical development challenges in El Salvador or within the region, including El Salvador, Guatemala, and Honduras.

This Addendum provides the Mission with a means of supporting or funding activities that are developed in collaboration with the private sector. Partnerships developed under this Addendum must involve one or more private sector entities. For purposes of this Addendum, prospective implementing partners may include, but are not limited to:

1. Private sector entities,

2. NGOs,

3. Universities,

4. Think tanks,

5. Foundations

6. Philanthropic institutions, and

7. Other entities whose rich array of expertise, experience and other human and institutional assets position them to be valuable partners in the creation and implementation of high-impact partnerships.

Partnerships co-created under this Addendum must advance private sector interests and objectives AND the development objectives and priorities that guide USAID’s development assistance programs and investments, such as El Salvador’s CDCS and the development initiatives in the RCS. Therefore, building an effective partnership requires a mutual understanding of USAID and private sector interests and priorities. The most successful partnerships are grounded in the mutually reinforcing relationship between core business interests (rather than purely philanthropic interests) and one or more of USAID’s development objectives. Developing such successful, high-impact partnerships is a collaborative effort based on several key practices:

● Engage early, and often, with the private sector;

● Proactive and extensive communication;

1 USAID’s Private Sector Engagement Policy defines the “private sector” as for-profit, commercial entities and their affiliated foundations; financial institutions, investors and intermediaries; business associations and cooperatives; micro, small, medium and large enterprises that operate in the formal and informal sectors; American, local, regional, and multinational businesses; and for-profit approaches that generate sustainable income (e.g., a venture fund run by a non-governmental organization (NGO) or a social enterprise). For this Addendum, the Mission considers “private sector” as private for-profit entities such as a business, corporation, or private firm;

private equity or private financial institutions, including private investment firms, mutual funds, or insurance companies; private investors (individuals or groups); entrepreneurs; private business or industry associations, including but not limited to chambers of commerce and related types of entities; and private grant-making foundations or philanthropic entities.

https://www.usaid.gov/el-salvador/cdcs https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf

● Joint and collaborative identification and definition of problems and opportunities;

● Clear articulation and understanding of partner interests and objectives;

● Thorough exploration of whether and how those interests and objectives overlap or complement one another;

● Thorough exploration of how the application of private sector and USAID expertise, capabilities, and resources provide business and development value propositions; and

● Joint and collaborative development of approaches to address the identified problems and opportunities and achieve the identified value propositions.

Consistent with USAID’s PSE Policy, the Mission seeks proactive engagement of and collaboration with the private sector in the identification and definition of key business and development problems and opportunities. Such engagement may include the co-creation and development of market-based and market-oriented approaches to solve problems and seize opportunities; the facilitation and implementation of such approaches; and the development and modeling of environmentally friendly (“green”) practices and policies in the private sector.

A.3.1. Leverage

The PSE Addendum will focus on developing partnerships that provide opportunities for leverage. Leverage is the resources mobilized and contributed by the private sector to significantly advance the proposed impact or progress against outcomes in a development activity, including assets, capabilities, and expertise. To this end, the Mission prefers to mobilize private sector resources, assets, capabilities, and expertise in equal or greater value of resources provided by the USG. However, the Mission will consider less when a concept presents a compelling partnership that will appreciably contribute to El Salvador’s CDCS and the development initiatives in the regional RCS. A lower ratio may also be considered due to Covid- 19 and the resulting economic consequences in El Salvador, Guatemala, and Honduras. As part of any special consideration related to Covid-19, the co-creation process will need to result in the applicant proposing how it will attempt to increase its leverage amount throughout implementation and as the economy improves. Leveraged resources may include grants/awards from non-US Government organizations and other private sector donors.

What counts as leverage?

In practice, leverage is typically a combination of cash and in-kind contributions of non-US Government funding or resources that advance proposed impact and progress against outcomes.

Examples of in-kind contributions that USAID might count toward the private sector leverage requirement include:

● Equipment

● Use of training or other purpose-specific facilities necessary to a program’s implementation

● Value of time donated by technical consultants, industry and business association members and staff, business owners, and/or company employees whose work, expertise, and experience positions them to be valuable partners in the partnership

● Value of salaries for staff dedicated to the partnership

● Technology, communications and capital assets https://www.usaid.gov/el-salvador/cdcs

● Intellectual property rights

● Licenses

● Cash

● Crypto assets and/or cryptocurrencies such as Bitcoin (BTC) and Ether (ETH)

A.4. Demographic Focus

The El Salvador CDCS relies on an urban-hub place-based approach and focuses on likely migrants who strive to eke out a living. Activities under this program description would, therefore, largely be focused on its targeted demographic (individuals under 40 with less than $400 per month in income or at risk of dropping out of school; and/or likely to be subjected to violence).

Similarly, any regional activity would need to focus on likely migrants from El Salvador, Guatemala, and Honduras. As stated by the RCS, a coordinated, place-based approach to improve the underlying causes that push Central Americans to migrate is of primary importance.

A.5. Programmatic Focus

The Mission anticipates that the Addendum will allow private sector partners to contribute:

● Bilaterally, in El Salvador, by achieving the goal of the CDCS, “Reduce the Drivers of Irregular Migration by Fostering a More Self-Reliant El Salvador: Secure, Prosperous and Well-Governed” and/or

● Regionally, in the El Salvador, Guatemala, and Honduras, by achieving the desired end-state for the region as stated in the RCS, “A democratic, prosperous, and safe region, where people advance economically, live, work, ans learn in safety and dignity, contribute to and benefit from the democratic process, have confidence in public institutions, and enjoy opportunities to create futures for themselves and their families at home.”

This Addendum is concentrated on USAID/El Salvador bilateral activities. However, concepts for activities in El Salvador, Guatemala and Honduras in order to support the USG’s regional RCS may also be considered.

A.5.1. El Salvador Expected Outcomes

Outcomes and outputs of any bilateral concept submitted under this Addendum should consider and contribute to the achievement of the following strategic expected outcomes:

a. SECURITY - DO 1: Security increased for likely migrants

1. Decrease the intentional homicide rate to 15 per 100,000 inhabitants

2. Decrease femicides by 30% per 100K women

3. Improve by 20% the national security perception

4. Decrease by 24% the percentage of people that have witnessed police perpetrated violence

5. Improve by 24% the Criminal Justice Factor of the rule of Law Index

b. PROSPERITY - DO 2: Jobs and income potential increased for likely migrants

1. Spur job creation of 85,000 new or better formal jobs, specifically targeting employment opportunities for those most likely to migrate,

2. Stop an additional 48,000 youth from dropping out of school.

c. GOVERNANCE - DO 3: Government responsiveness, accountability and transparency

1. Improve the government effectiveness index by 49%

2. Improve the electoral democracy index by 10%

3. Improve the corruption perception index by 18%

All bilateral addenda for El Salvador should also consider El Salvador’s CDCS results framework.

A.5.2. Expected Outcomes Regionally

Outcomes and outputs of any regional concept submitted under this Addendum should consider and contribute to the achievement of the following strategic expected outcomes:

a. SECURITY

1. Build safe communities through violence prevention and intervention in El

Salvador, Guatemala, and Honduras

b. PROSPERITY

1. Foster a Business Enabling Environment for inclusive economic growth in El Salvador, Guatemala, and Honduras

2. Increase and diversify trade in El Salvador, Guatemala, and Honduras

3. Build resilience to address climate change and food security in El Salvador, Guatemala, and Honduras

4. Enhance workforce employability through quality education in El Salvador, Guatemala, and Honduras

c. GOVERNANCE

1. Enhance respect for human rights in El Salvador, Guatemala, and Honduras

2. Enhance respect for labor rights in El Salvador, Guatemala, and Honduras

3. Promote free press in El Salvador, Guatemala, and Honduras

A.6. Focus Areas

A.6.1. Citizen Security

Crime and Violence Prevention: The Mission seeks to leverage resources and engagement by philanthropic and corporate partners in advancing crime and violence prevention in El Salvador or regionally (El Salvador, Guatemala, and Honduras). This includes partnering with the private sector to: improve safe spaces; support youth with extra-curricular activities including sports and cultural programs; and develop market-driven approaches in transitioning neighborhoods. The Mission also seeks partnerships with private sector entities willing to support ‘second chances’ -educational and economic, to individuals who may have previously been in conflict with the law, or had association with a criminal organization, but who have shown a commitment to changing their life trajectory. Job training and support is also sought for individuals who are at high risk of violence, such as victims of gender-based violence, including members of the lesbian, gay, bisexual, transgender, queer, and intersex (LGBTQI+) community and/or people with disabilities, who are seeking a means to secure livelihoods.

Illustrative Outputs:

● Partnerships with the private sector and foundations that improve conditions for the residents and businesses in transition neighborhoods in targeted geographic areas that can demonstrably and quantifiably impact perceptions among the community about their safety and wellbeing.

● Implementation of extracurricular activities that target youth who have not yet committed violence or been in conflict with the law, but are at risk of doing so, and that can demonstrably and quantifiably can reduce this risk.

● Partnerships with private sector entities to support individuals who have been in conflict with the law and/or committed violence, but who have shown a commitment to changing their life trajectory, with educational, job-training, psychological, social, or other types of support that can demonstrably and measurably increase the chances of their successful integration back into society.

A.6.2. Democratic Governance

Advancing public sector transparency, ethics, and accountability: The Mission seeks to partner with the private sector in expanding the business community’s involvement in advancing transparency and accountability in the areas of the rule of law, human rights, workers rights, and rules-based commerce and trade. This could include conducting and publishing research around contemporary business and leadership topics to educate and inform corporate leaders, policy makers and the general public.

Illustrative Output:

● Partnerships with the private sector and foundations in advancing rule of law, human rights, workers rights, freedom of press, transparency, accountability, and rules-based commerce and trade.

Improved private sector transparency, ethics, and accountability: The Mission seeks to partner with private sector entities committed to advancing business ethics and leadership. This would include initiatives to develop talent management, and leadership skills among emerging business and civic leaders.

Illustrative Output:

● Initiatives to develop leadership skills and corporate responsibility among current and emerging business leaders in the country around issues such as business ethics, critical problem solving, and corporate governance in ways that have a demonstrable and measurable impact in areas such as reduction of sexual harassment in the workplace and society, imporved labor relations, improved environmental practices, and greater economic oportunity for magilalzed segements of society.

A.6.3. Economic Growth

Job creation and employment of individuals at high risk of using irregular means of migration: The Mission seeks to establish alliances that support productivity-enhancing innovations and new ventures that create jobs in El Salvador or regionally (El Salvador, Guatemala, and Honduras). Proposed activities should engage vulnerable populations, especially women and youth, in entrepreneurial activities. These efforts might also include support to small and medium-sized enterprises (SMEs) to spur innovation, increase productivity, and create links to export markets.

● Partnerships to support entrepreneurs who are creating technology-driven, market-led solutions to development challenges in regions of high out-migration.

● Alliances to strengthen the entrepreneurship and innovation ecosystem, by reducing barriers to formalizing business and building capacity and competencies.

● Initiatives to facilitate market linkages of SMEs to high growth value chains, to create jobs, and to improve livelihoods for vulnerable populations and their communities.

● Partnerships to increase SMEs access to inputs, training, financing, and market knowledge to improve their production capabilities.

● Partnerships that provide youth at high risk of using irregular means of migration with economic opportunities such as participation in volunteer activities, community engagement, and training that serve to both provide basic short-term income while also fostering a sense of rootedness and links to longer-term economic opportunity.

Modeling and advancement of environmentally friendly (“green”) practices and policies in industry: The Mission seeks partnerships with the private sector to incentivize practices and policies that increase social and environmental benefits, while creating green employment and ensuring sustainable development outcomes. Proposed activities should increase resilience to climate change impacts, reduce greenhouse emissions, and incentivize investment to improve environmental development goals. Concepts should identify enterprise-led innovations for businesses to improve their resource productivity (e.g.; by increasing energy efficiency or improving water management), and/or introduce new products and services which are less carbon intensive.

● Alliances to measurably and significantly increase resilience to climate change impacts, reduce greenhouse emissions, and incentivize investment to improve environmental development goals.

● Initiatives to improve private sector resource productivity, which could include measurably and significantly increase energy efficiency, improving water management, and/or introduce new products and services that are less carbon intensive or that enable carbon reduction by others in ways that are likely to have a significant impact.

● Environmentally responsible ventures that are aligned with both USG and El Salvador and/or Salvadoran, Guatemalan, and Honduran government strategies, policies, and “green” legislation2.

Women’s economic empowerment and economic justice rights: Given Covid-19 and the rapid increase in the use of technology to sell goods and services online and make and receive payments, the Mission seeks partnerships with the private sector to reduce the gender gap in financial inclusion and increase women’s economic empowerment to reduce poverty and violence in El Salvador or regionally (El Salvador, Guatemala, and Honduras).

● Partnerships that foster measurable and significant increases in women’s economic access, agency, and power to improve their economic and social opportunities through technology.

● Strategic alliances to recruit, retain, and promote women in well-paying and safe traditionally male-dominated jobs, such as the technology sector, as well as access to capital, networks, mentors, and markets for women-owned and women-managed small and medium-sized businesses.

● Strategic alliances to improve employer practices sustainably, including: providing affordable, safe, and quality childcare options for working parents as well as addressing gender-based violence and sexual harassment in the workplace.

A.6.4. Education

Equipping Vulnerable Youth for Educational Success: The Mission seeks partnerships with the private sector to provide school-aged children and vulnerable youth with the conditions and incentives to stay in school and complete basic and secondary education (i.e.; high school).

Concepts should identify innovative ways to improve the learning outcomes or improve school facilities to foster student retention through educational technology. Many educators and students are using social media and online platforms as communication tools in which educators interact

2 For example, the recently approved "Ley de fomento e incentivos para la importación y uso de medios de transporte eléctricos e híbridos" (i.e.; "Law of promotion and incentives for the importation and use of electric and hybrid means of transportation").

with parents and students interact among peers more easily. Social media and online platforms are here to stay, and schools can use it to collaborate, share, innovate and lead to an improved learning experience.

● Increase the average completed level of schooling in relevant areas to the private sector.

● Stop youth from dropping out of school.

Closing the Digital Divide in Education: The Mission seeks partnerships with the private sector to provide bilateral or regional (El Salvador, Guatemala, and Honduras) alternatives to reduce the digital divide3 in four major areas: a) access to technological devices (desktop and laptop computers, tablets); b) access to the Internet (including--for El Salvador only-- innovative, cost effective formats such as using the white space telecommunication spectrum in bilateral coordination with the Government of El Salvador); c) improvement to collaborative teaching/learning methodologies to bridge the gap between teachers and students; and d) help students strengthen their academic, interpersonal, and emotional skills and access to stable connectivity for teachers and students in schools and at home for virtual teaching/learning. The advantages of incorporating science, technology, engineering, art, and math (STEAM) in the education system is that it helps students become more active, become more critical thinkers, and be creative in their learning process.

● Increase the access to quality technical education, especially for vulnerable groups, in the areas of STEAM education.

● Improved learning and teaching methodologies, in which technology adds valuable knowledge and uses for educators and learners, both in theory and in real life.

● Ensure equitable access to digital literacy skills and training, particularly for vulnerable populations, including women, persons with disabilities, and other underrepresented groups identified in the El Salvador CDCS and the RCS.

Youth Training for Improved Employability: The Mission seeks partnerships with the private sector to strengthen and increase the pipeline of skilled youth working in technical areas (i.e.;

general high schools, technical high school, higher-education technical education, and/or professional formation in technical vocational education). Teachers and students are using new tools and technologies, as a result of the Covid-19 pandemic. Therefore, the roles of educators need to evolve continuously. It is crucial to create essential digital competencies and skills for

3 According to the USAID Digital Divide Primer launched in August 2020, the digital divide is the distinction between those who have Internet and mobile access and can use digital communications services and those who are excluded from these services. The gender digital divide reflects the inequalities between men and women regarding digital technology access and use. Digital literacy skills are those necessary to "access, manage, understand, integrate, communicate, evaluate, and create information safely and appropriately through digital devices and networked technologies for participation in economic and social life." There are two pillars of digital literacy:

capacity and safety. Capacity is the hard skills people need to access the Internet and utilize various digital platforms, including computers, mobile devices, and other media (e.g., audio and video). Safety encompasses using digital tools safely, including online security, privacy, and information and media literacy.

teachers. Technology might introduce new teaching methods using Information, Communication, and Technology (ICT) resources in open source environments as there is an enormous wealth of learning and training materials available online. Proposed activities must also contribute to improved economic outcomes for them, their families, and their communities. The Mission seeks market-driven approaches that provide incentives to align technical-vocational school curricula with private sector demand, and foster the development of “soft” social skills necessary for success in businesses.

● Directly train and place vulnerable people in better jobs, and foster a more competitive workforce nationwide.

● Develop education/private sector alliances that help provide training and support for job placement.

● Increase the earnings of participants by at least one month of minimum wage earnings.

A.7. Coordination Efforts

A.7.1. Coordination with Business Associations and NPI

USAID assistance for achieving the activity purpose relies on strong partnerships and coordination with local institutions, donors, and the private sector. This Addendum recognizes the important role of business associations and philanthropic foundations as key partners for the advancement of the Mission’s Development Objectives. Business associations in El Salvador such as the American Chamber of Commerce (AMCHAM), the Industrialist Association (ASI) and the Chamber of Commerce (CAMARASAL) membership have traditionally partnered with USAID/El Salvador in activities ranging from crime and violence prevention, basic education, workforce development and SME strengthening. Regional business associations such as the Central American Integration for Corporate Social Responsibility (RED INTEGRARSE), have previously engaged with USAID to participate in regional forums that promote security, prosperity, and good governance.

Private sector philanthropic foundations play a very important role in El Salvador and regionally (El Salvador, Guatemala, and Honduras) and they have been the implementing or resource partners in multimillion dollar Global Development Alliances. Since private sector philanthropic foundations’ objectives frequently align with those of USAID’s, coordination with them will be essential. Further, El Salvador and the region (El Salvador, Guatemala, and Honduras) have a vibrant ecosystem of local NGOs and foundations engaged in local development that will be targeted as potential implementing and resource partners.

A.7.2. Coordination with other USG Agencies

When applicable, activities under this Addendum are expected to implement their activities in close coordination with other USG Departments and Agencies that work with the private sector such as the Department of Commerce, the Economic Section of the US Embassy, and the US

Development Finance Corporation. In this way, synergies that strengthen the proposed activities are expected to occur and duplication of activities will be avoided.

A.7.3. Coordination with Other Donors

A solid relationship and frequent coordination with other key donors such as the Interamerican Development Bank and the European Union is critical to avoid duplication of efforts. Applicants will proactively seek to leverage funding and resources to better align priorities and achieve desired development impacts. When applicable, USAID highly encourages proposals to demonstrate a solid understanding of key donors whose existing relationships and initiatives with private sector counterparts are aligned with the objectives of proposed activities.

A.7.4. Coordination with other USAID/El Salvador Activities

Current awards managed by EGE and DGS offices, USAID/El Salvador. Examples include, but are not limited to:

● Nuevas Oportunidades: This activity contributes to the prosperity of Salvadoran youth by increasing access to quality education directly related to local employment opportunities for those who have academic potential and desire, but lack financial resources. This alliance will provide a path to greater school engagement, enhanced life skills, employment, and non-violent conflict resolution. These skills promote a stronger sense of community, thus reducing violence and mitigating the drivers of irregular migration.

● High Impact and Sustainable Communities Project in Soyapango: This activity contributes to the improvement of the quality of life of families in Soyapango, through the articulation of the key sectors to increase the opportunities of economic and social development of the municipality.

● Imagina - El País que queremos: This activity seeks to empower and catalyze citizens to actively participate in the creation, revitalization, and maintenance of public spaces, as well as to provide a dynamic platform to collect and analyze data regarding citizens’ perceived quality of life.

● New Path for Social Reintegration Project: This activity focuses on social insertion of young and adolescents by strengthening public policy.

Future awards managed by EGE and DGS offices at USAID/El Salvador.

Current awards managed regionally, USAID/CAM. Examples include, but are not limited to:

● Integrated Responses on Migration (IRM) from Central America: This activity contributes to lowering both the number of irregular migrants to the United States and the number of apprehensions at the U.S. southern border, which are key U.S. Government priorities.

● Trade Facilitation and Border Management Project: The goal of the Activity is to contribute to the Central American countries’ broad-based economic growth by enhancing regional integration and improving trade facilitation.

Future awards managed by USAID/CAM.

A.8. Guiding Principles

A.8.1. Gender Equality and Female Empowerment

Central American countries are societies with strong social norms that dictate gender roles and cultural practices that often result in gender inequality. Using a measure of gender equality developed by the UN for the 2016 Human Development Report, El Salvador, Guatemala, and Honduras currently rank toward the high end (indicating high gender inequality) at 117, 125, and 130, respectively, out of 188 countries.

Low levels of literacy and lack of information and knowledge about job opportunities and civil rights are more prevalent among women than men. This means that women are not able to fully benefit from the opportunities and efficiencies that workforce development or violence prevention programs offer. Gender-based violence is also considered a constraint that women experience in the region (El Salvador, Guatemala, and Honduras). Typically, working conditions are geared towards the needs of the male workers and thus women are afforded poor amenities and opportunities.

The Mission seeks partnerships with the private sector that systematically consider the gender aspects and implications of specific interventions. Therefore, gender must be considered in the work plan in accordance with USAID requirements. This includes examining:

1. How the different roles and status of women and men in the region will affect the activities to be undertaken; and

2. How the anticipated results of the activity might affect women and men differently.

3. A coordinated, place-based approach to improve the underlying causes that push Central

Americans to migrate, taking into account, as appropriate, the views of bilateral, multilateral, and private sector partners, as well as civil society.

The Mission seeks partnerships with the private sector where stakeholder engagement is gender-sensitive and that both women and men are represented throughout the activity cycle including:

(1) taking into account the particular constraints that women face, (2) engaging women and ensuring they are willing and able to participate in activities, and (3) ensuring that a wide range of women’s perspectives are represented within the activity.

The Mission seeks partnerships with the private sector where training activities address the gender dynamics that ensure equal participation from male and female participants to ensure as much gender parity as possible.

Progress in all related activities will be measured and verified using indicators that are disaggregated by sex. Monitoring and evaluation tools should include questions to elicit information that allows differentiation of impacts based on gender.

A.8.2. Sustainability

Sustainability is integral to the design of proposed activities. Interventions must be strategically justifiable and demonstrate why and how, if any or all development outcomes will be sustained beyond the period of performance of the award with USAID. Innovative approaches supported by the activity must be sufficiently robust, and command a sufficiently broad constituency, to hold up through political elections and changes in administration. The Applicant’s approach to implementation should also be sufficiently flexible to adapt to changes in priorities or leadership within key institutions and counterparts. At all times, the applicant will ensure to include facilitation and local accountability in the proposal.

A.8.3. Local Solutions

Local Solutions are defined as using, strengthening, and partnering with local actors and local systems strategically, purposefully, and cost-effectively to achieve sustainable development.

Involving local partners - those based in the region (El Salvador, Guatemala, and Honduras) -will help to ensure ongoing development impact and sustainability. As part of the USAID’s New Partners Initiative, proposed activities will focus on building capacity of local partners to promote innovation, develop local technical capacities, deepen accountability and improve development results.

A.8.4 People with Disabilities

USAID is committed to the inclusion of people who have physical and cognitive disabilities and those who advocate and offer services on behalf of people with disabilities to promote a climate of nondiscrimination against and equal opportunity for people with disabilities; and to promote the inclusion of people with disabilities both within USAID programs.

A.8.5. Social Inclusion

USAID’s social inclusion policies aim to avoid discrimination against vulnerable populations such as youth, returned migrants, men and women in the process of or in need of reinsertion to society, indigenous peoples, and members of the LGBTQI+ community in programs which USAID funds.

This commitment extends from the design and implementation of USAID programming to advocacy for, and outreach to, people from vulnerable populations, and the activity should integrate these guidelines throughout.

A.8.6. Monitoring and Evaluation (M&E), Collaborating, Learning and Adapting (CLA)

Monitoring and evaluation (M&E), and collaborating, learning and adapting (CLA) for activities should emphasize the systematic process of collecting and analyzing performance data and other information to track progress toward planned results. It also involves collaborating with and across implementing partners to manage the relationship among activities, or between activities and a project, to achieve higher-level outcomes. Activity M&E and CLA focuses on whether an activity is achieving programmatic results and generating learning to inform the adaptation of activities based on evidence.

The Mission seeks partnerships with the private sector that contribute to the Mission’s commitment to a multifaceted CLA approach to development. The CLA approach is based on the understanding that development efforts yield more effective results if they are coordinated and collaborative; test promising, new approaches in a continuous yet also rapid, targeted search for generating improvements and efficiencies; and build on what works and eliminate what does not.

It is also understood that CLA takes into account programmatic learning and shifts generated by the activity (outward-generating) as well as those adopted by the activity from external learning sources. USAID also anticipates that a strong focus on adaptive management techniques as expressed through staffing skills, structure and culture, business processes, and stakeholder engagement will be particularly important in the implementation of each resulting activity, in order to track and adjust to the opportunities to operationally integrate with other activities working in related efforts. Thus, USAID anticipates a CLA approach that tailors CLA to the needs and opportunities of each resulting activity, while leaving open options for future evolution in its interpretation and application.

A.8.7. Communication Strategy

Communications and public perception are critical to the achievement of USAID/El Salvador’s development objectives to improve security, increase prosperity and strengthen democratic governance. Together with our partners, GOES and the communities in which we work, USAID promotes an increased level of hope for Salvadorans living a good life at home, measured by improvements in educational and economic opportunities, security and government. Each activity will contribute to this shared objective. Each activity will provide a communications strategy demonstrating how the partner and activity will utilize communications to achieve results and how the activity contributes to higher level objectives of increased hope and improved public perceptions. USAID El Salvador/DOC will coordinate with communications leads of all partners regularly to align efforts, refine local hub messaging and national campaigns, and encourage partners’ continued understanding and development of communications products that prioritize CDCS communication goals.

A.8.8. Environmental Considerations

The Foreign Assistance Act of 1961, as amended, Section 117 requires that the impact of USAID’s activities on the environment be considered and that USAID include environmental sustainability as a central consideration in designing and carrying out its development programs.

This mandate is codified in Federal Regulations (22 CFR 216) and in USAID’s Automated Directives System (ADS) Parts 201.5.10g and 204 (http://www.usaid.gov/policy/ADS/200/) , which, in part, require that the potential environmental impacts of USAID-financed activities are identified prior to a final decision to proceed and that appropriate environmental safeguards are adopted for all activities.

http://www.usaid.gov/policy/ADS/200/

No activity funded under this award will be implemented unless an environmental threshold determination, as defined by 22 CFR 216, has been reached for the activity, as documented in a Request for Categorical Exclusion (RCE), Initial Environmental Examination (IEE), or Environmental Assessment (EA) approved by the Mission Director and duly signed by the Bureau Environmental Officer (BEO). (Hereinafter, such documents are described as “approved Regulation 216 environmental documentation.”) The Mission has three existing IEEs completed for current and future programming (LAC-IEE-21-71, LAC-IEE-15-07, LAC-IEE-15-30), and two forthcoming IEEs will eventually replace LAC-IEE-15-07 and LAC-IEE-15-30.

A.8.9. Climate Risk Management (CRM) USAID regulation ADS 201 mandates to assess and manage climate risks of all USAID-funded activities, with limited exceptions. Climate risk is the potential for negative consequences on activity objectives and/or outcomes due to changing climatic conditions. The CRM process seeks to identify climate risks and propose actions to manage the risks. It may also identify potential development opportunities associated with current and expected climatic and meteorological changes, including chances to achieve additional development objectives (including increasing climate resilience and reducing greenhouse gas emissions). Concept papers should identify and address potential climate risks. Selected concept papers will have a CRM assessment.

The Mission’s CRM assessment determined that extreme climate events are quite likely to be experienced during the CDCS period with varying degrees of risk associated with the expected CDCS results. In addition, all of the potential climate risks could be major drivers of internal displacement and out-migration, depending on their severity, length and the Government of El Salvador’s capacity to respond. In addition, the assessment underscored the importance of analyzing the impact of climate risk on vulnerable populations, as a driver of irregular migration and as a deterrent to the country’s development.

[END OF SECTION A]

SECTION B: FEDERAL AWARD INFORMATION

Issuance of this Private Sector Engagement Addendum does not constitute an award commitment on the part of the U.S. Government, nor do those commit the U.S. Government to pay for any costs incurred in the preparation or submission of questions, comments, suggestions, Concept Papers, and/or Full Application. Applicants submit Concept Papers/Applications at their own risk, and all preparation and submission costs are at their expense.

B.1. Estimate of Funds Available and Number of Awards Contemplated

Subject to funding availability, the Mission intends to provide approximately $50,000,000 in total USAID funding to support activities focused on Private Sector Engagement programmatic areas described in this Addendum.

The Mission anticipates awarding one or more award(s) under this Addendum. The actual number of awards, if any, under this Addendum is subject to the availability of funds and the interests and requirements of USAID/El Salvador, as well as, the viability of eventual Applications received. Actual funding amounts and length of awards are subject to availability of funds, award type, and activity proposed.

Evergreen:

If USAID identifies opportunities to strengthen or fund a concept paper or application submitted in response to the Addendum by connecting it with other USAID mechanisms, other potential funders, and/or external partners, USAID may make that concept paper or application available, internally or externally, for appropriate consideration. Therefore, applicants must be willing to:

(a) Co-create the activity by sharing their proposed approach to the project with other organizations,

(b) Enter into sub-award arrangements, and/or

(c) Collaborate with other organizations to coordinate and optimize technical and administrative contributions, as may be necessary.

(d) If a regional concept is presented, this concept should be for El Salvador, Guatemala, or

Honduras.

B.2. Nature of the Relationship between USAID and the Successful Recipient

The principal purpose of the relationship with the Recipient is to…