Attachment J.12 Guide for Monitoring USAID COLOMBIA’S Engagement with Stakeholders 20201110.pdf

GUIDANCE FOR MONITORING

USAID/COLOMBIA’S

ENGAGEMENT WITH

STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

GUIDANCE FOR

MONITORING

USAID/COLOMBIA’S

ENGAGEMENT WITH

STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

October, 2020

DISCLAMER

This publication was produced for the United States Agency for International Development by Panagora through the MEL Activity.

The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government

GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

i

1. INTRODUCTION

CONTENIDO

LIST OF ACRONYMS v

1. INTRODUCTION 1

1.1 OVERVIEW GUIDANCE 1

1.2 POLICY FRAMEWORK 2

2. USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS 3

2.1 LEVELS OF USAID/COLOMBIA ENGAGEMENT WITH STAKEHOLDERS 4

DIRECT ENGAGEMENT 4

INDIRECT ENGAGEMENT 4

2.2 TYPES OF STAKEHOLDERS 5

2.2.1 PRIVATE SECTOR 5

2.2.2 NON-USG PUBLIC ENTITIES 6

2.2.3 CIVIL SOCIETY ORGANIZATIONS AND COMMUNITIES 6

2.2.4 MIXED ENTITIES 7

Mixed public services entities 7

Other mixed entities 7

2.3 PARTNERSHIPS 8

2.3.1 PARTNERSHIPS WITH THE PRIVATE SECTOR 8

2.3.1.1 PUBLIC - PRIVATE PARTNERSHIPS (PPP) 8

EXAMPLE 1: PUBLIC - PRIVATE PARTNERSHIP (PPP) 11

2.3.1.2 GLOBAL DEVELOPMENT ALLIANCE (GDA) 11

EXAMPLE 2: GLOBAL DEVELOPMENT ALLIANCES (GDA) 12

ii

CONTENT

GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.3.2 PARTNERSHIPS WITH NON-USG PUBLIC ENTITIES 13

2.3.2.1 GOVERNMENT TO GOVERNMENT (G2G) 13

2.3.2.2 OTHER GOVERNMENTAL ENTITIES 14

2.3.2.3 INTERNATIONAL ORGANIZATIONS AND OTHER DONORS 14

2.3.3 PARTNERSHIP WITH CIVIL SOCIETY ORGANIZATIONS 14

2.3.4 PARTNERSHIP WITH MIXED-OWNERSHIP ENTITIES 14

EXAMPLE 3: PARTNERSHIP WITH A MIXED ENTITY 14

2.4 OTHER TYPES OF ENGAGEMENT 15

2.4.1 ALLIANCES FACILITATED BY USAID 15

EXAMPLE 4: ALLIANCES FACILITATED BY USAID 15

2.4.2 MOBILIZATION OF RESOURCES 16

EXAMPLE 5: MOBILIZED FUNDS 16

2.4.3 PURCHASE AGREEMENTS 16

EXAMPLE 6: PURCHASE AGREEMENT EXAMPLE 17

3. THIRD-PARTY FUNDS (TPFs) INDICATORS 18

3.1 THIRD PARTY FUNDS DEFINITION 20

3.1.1 LEVERAGED FUNDS 20

EXAMPLE 7: LEVERAGED FUNDS 20

3.1.2 COST SHARE FUNDS 21

3.1.3 MOBILIZED FUNDS 21

EXAMPLE 8: MOBILIZED FUNDS 22

3.1.4 USAID INVESTMENTS LINKED TO LEVERAGED FUNDS 23

3.1.5 USAID INVESTMENTS LINKED TO COST SHARE 23

3.1.6 USAID INVESTMENTS LINKED TO MOBILIZED FUNDS 23

3.2 MEASURING AND REPORTING THIRD PARTY FUNDS 24

3.2.1 THIRD PARTY FUNDS INDICATORS 24

3.2.2 VALUE OF THIRD PARTY FUNDS 24

3.2.3 UNIT OF MEASURE FOR THE INDICATORS 25

iii

GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

3.2.4 INDICATORS DISAGGREGATION 25

3.2.4.1 RESOURCES ORIGIN 25

3.2.4.2 TYPES OF RESOURCES 26

EXAMPLE 9: CASH EXAMPLE 26

EXAMPLE 10: IN-KIND EXAMPLE 26

3.2.4.3 GEOGRAPHIC LOCATION 26

3.2.5 ELIGIBILITY OF THE FUNDS 27

3.2.6 DATA SOURCES FOR THE INDICATORS 27

3.2.7 INVESTMENT STAGES TO REPORT THIRD PARTY FUNDS 28

3.2.8 MEANS OF VERIFICATION 29

3.2.9 REPORTING FREQUENCY 30

3.2.10 REPORTING IN MONITOR 31

3.3 THIRD PARTY FUNDS INDICATORS SUMMARY TABLE 32

4. REPORTING ON PPPs 33

4.1 REGISTRATION OF PPP IN MONITOR 34

4.2 QUANTITATIVE RESULTS 35

4.3 QUALITATIVE RESULTS 36

4.4 MEANS OF VERIFICATION 37

5. MONITORING OF PARTNERSHIPS 38

5.1 BASIC OUTPUT INDICATORS FOR USAID/COLOMBIA PARTNERSHIPS

AND OTHER TYPES OF ENGAGEMENT 39

5.2 USE OF AMELP INDICATORS TO TRACK PROGRESS OF PARTNERSHIPS 40

6. LEARNING FROM USAID ENGAGEMENT 41

iv

GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

ANNEXES 42

ANNEX 1: PERFORMANCE INDICATOR REFERENCE SHEETS (PIRS) 43

ANNEX 1A: VALUE OF LEVERAGED FUNDS 43

ANNEX 1B: VALUE OF MOBILIZED FUNDS 45

ANNEX 1C: VALUE OF COST SHARE FUNDS 47

ANNEX 1D: VALUE OF USAID INVESTMENTS LINKED TO LEVERAGE FUNDS (Xl) 49

ANNEX 1E: VALUE OF USAID INVESTMENTS LINKED TO MOBILIZED FUNDS (Xm) 51

ANNEX 1F: VALUE OF USAID INVESTMENTS LINKED TO COST SHARE FUNDS (Xc) 53

ANNEX 2: REPORTING ON USAID PARTNERSHIPS AND OTHER ENGAGEMENTS 55

How to write Success Stories 57

Public - Private Partnerships Qualitative information Template 58

ANNEX 4: REFERENCES 59

ANNEX 5: GLOSSARY 60

ANNEX 6: REPORTING OF LEVERAGE FUNDS FOR GDAs 65

EXAMPLES 66

EXAMPLE 1: PUBLIC - PRIVATE PARTNERSHIP (PPP) 67

EXAMPLE 2: GLOBAL DEVELOPMENT ALLIANCE (GDA) 67

EXAMPLE 3: PARTNERSHIP WITH A MIXED ENTITY 68

EXAMPLE 4: ALLIANCES FACILITATED BY USAID 69

EXAMPLE 5: MOBILIZED FUNDS 69

EXAMPLE 6: PURCHASE AGREEMENT EXAMPLE 69

EXAMPLE 7: LEVERAGED FUNDS 69

EXAMPLE 8: MOBILIZED FUNDS 70

EXAMPLE 9: CASH EXAMPLE 70

EXAMPLE 10: IN-KIND EXAMPLE 70

v

1. INTRODUCTION

LIST OF ACRONYMS

ADS Automated Directives System

AOR Agreement Officer Representative

CDCS Country Development Cooperation Strategy of USAID/Colombia

CFR Code of Federal Regulations

COP Colombian Peso

COR Contracting Officer Representative

DCA Development Credit Authority

DFC Development Finance Corporation

DO Development Objective

DQS Data Quality Standards

GDA Global Development Alliances

G2G Government-to-Government

GOC Government of Colombia

IPs Implementing Partners

J2SR Journey to Self-Reliance

MOU Memorandum of Understanding

MSC Most Significant Change

NPI New Partnership Initiative

PIO Public and International Organization

PIRS Performance Indicators Reference Sheets

PPP Public-Private Partnership

PSE Private Sector Engagement

RF Results Framework

USAID United States Agency for International Development

USG United States Government

1. INTRODUCTION

INTRODUCTION

1.1 OVERVIEW GUIDANCE

USAID partners with stakeholders within Colombia to increase the impact of its development activities.

Through its work, USAID/Colombia serves as a catalyst for unlocking the resources of other development actors, including those of partner country governments and citizens, civil society organizations, the private sector, multilateral organizations and other donors to reach the poor, institutionally weak, and conflict-ridden populations. By doing so, USAID maximizes the impact of its assistance, and can better focus on areas where it has a comparative advantage; rationalize resource allocations and bring successful programs to scale.

In this context it is necessary to have clear measurements that allow the Mission, implementing partners and stakeholders to show progress achieved, and provide enough evidence-based data to inform future decision-making processes.

The purpose of this document is to explain:

• The policy framework for USAID’s engagement with stakeholders.

• How USAID/Colombia engagement with stakeholders is conducting the types of partners and partnerships that the Mission can promote and other types of engagement such as mobilization, DFC guarantees, and alliances.

• Key concepts, indicators, and reporting parameters of Third-Party Funds (TPFs) enabled by USAID/Colombia.

• How to report partnerships in the Monitoring System of the Mission and the types of quantitative and qualitative information reporting requirements.

• Suggestions of performance indicators that can be included in order to track partnership´s performance.

• Considerations about learning from USAID engagement with stakeholders.

1.

1. INTRODUCTION

1.2 POLICY FRAMEWORK

A country’s government, civil society and the private sector capacity to plan, finance, and implement solutions to local development challenges

A commitment to see these through effectively, inclusively, and with accountability and dedicated resources

Self-Reliance

USAID/Colombia has been effectively engaging with diverse stakeholders (private sector, local governments and civil society) to contribute to common development goals and build the necessary skills, leverage resources, and share knowledge that enable local systems and markets to become self- sustaining.

In these efforts, USAID´s Private Sector Engagement (PSE) becomes a key driver in all stages of a country’s Journey to Self-Reliance since it emphasizes in-country resourcing with enterprise-driven development to address challenges, alongside host-country governments and civil society, where Public- Private Partnerships (PPP), Global Development Alliances (GDA), New Partnerships Initiatives (NPI) and loans and credit guarantees from Development Finance Corporation (DFC) foster mutually-sustaining relationships rooted in accountability, co-creation, and innovation.

“ Private enterprise is the single most powerful force for lifting lives, strengthening communities, and accelerating self-reliance”

— USAID Former Administrator Mark Green

USAID’s vision for a more free, peaceful, and prosperous world is built around the compelling, yet simple, notion that the purpose of our assistance must ultimately be ending the need for it to exist. USAID´s new Policy Framework presents the Agency-wide approach to development and humanitarian assistance by partnering with countries along through their Journeys to Self-Reliance.

USAID defines Self-Reliance as:

https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf https://www.usaid.gov/sites/default/files/documents/1865/usaid_psepolicy_final.pdf https://www.usaid.gov/npi https://www.usaid.gov/npi https://www.dfc.gov/ https://www.usaid.gov/sites/default/files/documents/1870/WEB_PF_Full_Report_FINAL_10Apr2019.pdf https://www.usaid.gov/selfreliance#:~:text=It's%20called%20the%20Journey%20to,and%20accelerating%20enterprise%2Ddriven%20development.

1. INTRODUCTION

USAID/COLOMBIA’S

ENGAGEMENT

WITH STAKEHOLDERS

Sustainability requires local ownership to be successful. From partnerships that leverage resources for the development of common objectives, to catalyzing actions to mobilize the country´s own resources for its own development, USAID/Colombia is committed to engage with partners from all sectors to support Colombia in its Journey to Self-Reliance.

USAID stakeholders represent a highly complex set of actors, with a wide variety of types, focus, and scope of their interaction with the Agency. The following sections describe the type of stakeholders with whom USAID gets engaged and the type of engagement they have with the MIssion. This includes partnerships and other types of engagement.

2.

Private Sector

Non-USG Public Entities

Civil Society Organizations

Government to Government Partnerships (G2G)

Partnerships with Other Governmental Entities

Partnerships with International Organizations & Other Donors

Public-Private Partnerships (PPP)

Global Development Alliance (GDA)

USAID/Colombia engagement with partners (Direct / Indirect) (Indirect)

Other types of engagement

Mobilization of Resources

Purchase Agreements

Alliances Facilitated by USAID

Types of Stakeholders

2. USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

4GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.1 LEVELS OF USAID/COLOMBIA ENGAGEMENT

WITH STAKEHOLDERS

USAID utilizes its convening power to bring together diverse stakeholders, from government to business and communities, to solve systemic challenges through the following two modalities:

DIRECT ENGAGEMENT

This refers to partnerships where there is a direct agreement between USAID/Colombia and a second party (private or public) entity to achieve a common objective. This direct engagement is formalized through USAID assistance instruments: either through grants or cooperative agreements1.

INDIRECT ENGAGEMENT

It refers to USAID engagements with Third Party entities through its Implementing Partners2. In these cases, USAID implementing partners engage with Third Party entities through partnerships to develop common objectives. It also includes those cases in which implementing partners mobilize resources and catalyzes efforts from Third Party entities to achieve development objectives3.

1 This link describes USAID assistance instruments. USAID acquisition instruments are not considered formalized partnerships, since in these cases USAID acquires goods and services for USAID benefit

2 Third Party entities are all those actors that are engaged in USAID programming different from implementing partners.

3 Further on in this manual (section 3.1.3) mobilize funds are defined.

https://www.usaid.gov/india/partner-resources/infographic-types-assistance-instruments#:~:text=There%20are%20two%20main%20types,Yes%3B%20Cooperative%20Agreement%20%3D%20Yes.

5GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.2 TYPES OF STAKEHOLDERS

The following sections describe the types of USAID stakeholders.

2.2.1 PRIVATE SECTOR

The Private Sector is defined as a “part of the economy run by individuals and companies for profit and is not state-controlled” that brings innovation, technologies, industry expertise and capabilities to USAID´s interventions enhancing their scalability, sustainability, and overall reach in local systems. The private sector is comprised by:

• For-profit, commercial entities and their affiliated foundations (e.g.: Fundación Corona)

• Financial institutions, investors and intermediaries (e.g.: Bancamia)

• Business associations and cooperatives (e.g: Asociación de productores cafeteros del Norte de Antioquia - APROCANT.)

• Micro, small, medium and large enterprises that operate in the formal and informal sectors (e.g: Compañía Nacional de Chocolates)

• American, local, regional, and multi-national businesses; (e.g.: Starbucks)

• For-profit approaches that generate sustainable income such as ventures fund and run by a non-governmental organization (NGO) or a social enterprise (e.g.:

Ramsey Foundation)

• Not- profit foundations funded by private contributions (e.g.: Fundacion Carvajal, Fundacion Minerva)

• Sector guilds funded by private contributions (“gremios” such as FEDECACAO and ANDI)

Note: Not all entities/organizations subject to the rules of private law in Colombia make part of what USAID considers the Private Sector. In Colombia, non-profit organizations are governed by private law and ordinary jurisdiction.

However, for USAID only the non-profit organizations that are mainly funded by private contributions are considered part of the Private Sector and some other specific cases of mixed entities as specified in section 2.2.4. Most of the rest of non-profit organizations are considered Civil Society Organizations as specified in section 2.2.3. There are also some few particular non-profit entities considered by USAID as Non-USG public entities as explained in section 2.2.2.

6GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.2.3 CIVIL SOCIETY ORGANIZATIONS AND COMMUNITIES

Civil society organizations include formal non-government organizations (NGOs) as well as formal membership associations that articulate and represent the interests of their members. These organizations represent several interests and have different development purposes. For example, they can. engage in analysis and advocacy and conduct oversight of government actions and policies or they can represent the interests and contribute to the respect of human rights of vulnerable populations. These types of organizations include ethnic communities (such as community councils and indigenous resguardos) and community groups (such as victims of violence, LGTBIQ, women, youth groups, and community action boards

- Juntas de Acción Comunal).

It is important to highlight that for the purposes of this guidance, civil society organizations are understood as non-profit organizations whose resources come from its own associates and must be formally registered as such. In cases where USAID support to a CSO has helped it to become a for-profit organization or a business, the organization would be then seen as part of the private sector. For example, infrastructure non-profit organizations turned to be for-profit; they must be counted as the private sector. Lastly, in some cases, communities play partner roles in some USAID interventions. They contribute with their workforce and with assets to develop common objectives with the Mission. Hence, in these cases, they are also considered as USAID stakeholders. Communities are groups of direct beneficiaries of USAID Activities that develop collective actions.

2.2.2 NON-USG PUBLIC ENTITIES

Non-USG public entities are understood as government-owned entities performing a public function in the host country. This includes national government offices, ministries and national level agencies as well as their specific operational units, and regional, departmental and municipal governments.

This group also includes international organizations from the United Nations System such as the International Organization for Migration (IOM), World Food Programme (WFP), UN Women, among others In addition, it includes other countries’ governments -different from host countries and US governments – and their corresponding cooperation agencies (if they have them). For instance, “SOCODEVI” which is a contractor from other donor countries funded by public resources may also be considered under this category

7GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.2.4 MIXED ENTITIES

In Colombia, there are organizations and companies considered to be part of the mixed economy. Generally, these are commercial entities that are formed with public sector -Colombian government4- contributions and private capital.

According to Colombia law most of these mixed economy commercial entities are subject to the rules of private law and ordinary jurisdiction. However, in the cases where the Colombian government has a shareholding greater than 50%5, these mixed entities are subject to the General Contracting Statute of Colombian Public Administration (with some exceptions6). Examples of these mixed economy entities are: Finagro, Findeter, Ecopetrol, Bancoldex and Artesanías de Colombia.

For USAID the Mixed economy Entities category doesn’t exist. They must be considered either part of the Private Sector or the Public Sector. The mixed commercial entities that are under private Colombian law and ordinary jurisdiction should be considered part of the Private Sector. The mixed entities that are under the General Contracting Statute of Colombian Public Administration should be considered part of the Public Sector.

Mixed public services entities

Generally, these are public services entities formed with public sector -Colombian government- contributions and private capital. According to Colombian law, there are different from mixed economy commercial entities because they produce public services. In these cases, Colombian government capital contributions are equal to or greater than fifty percent (50%), but less than 100% of the subscribed shares. For USAID the category Mixed public Service Entities doesn’t exist. They must be considered part of the Public Sector. For example: Empresa de Servicios Públicos de Medellín y Colombia - EPM.

Other mixed entities

In Colombia there are non-for-profit organizations where the private sector and the Colombian government partner for the development of common goals.

Examples are the Chambers of Commerce, which are corporate and union natured. These are subject to the rules of private law and ordinary jurisdiction.

Chambers of Commerce play functions of defending private interests but also play public roles such as keeping commercial records. For USAID these entities should be considered part of the Private Sector.

4 Government of Colombia stands for “Estado Colombiano”.

5 Including its subsidiaries and public entities partnerships with a majority stake of the Colombian Government greater than 50%, 6 This 50% condition has exemptions, for those that develop commercial activities in competition with the private and / or public sector, national or international or in regulated markets. In these cases, the entities will be governed by the legal and regulatory provisions applicable to their economic and commercial activities. When these cases apply, before considering the Entity as Private Sector or the Public Sector please consult the PSE team of USAID.

8GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.3 PARTNERSHIPS

USAID/Colombia partners with 1) the Private Sector (PPPs); 2) partnerships with Non-USG public entities;

3) partnerships with Civil Society Organizations (CSO) and communities. USAID also does partnerships with Mixed entities although these are considered either private or public according to specifications done in section 2.2.4.

It is important to highlight that the concept of partnerships requires both or multiple parties to co-create and co-fund, and therefore all share the risks of the endeavor. These partnerships can happen as a result of USAID direct engagement (e.g.: USAID + Private Partner) or indirect engagement (e.g. USAID´s implementing partner + private partner). Either way, the result will consist in a partnership that has a common objective, timeframe, geography and benefits the same populations.

2.3.1 PARTNERSHIPS WITH THE PRIVATE SECTOR

Private Sector Engagement (PSE) is a key driver in all stages of a country’s Journey to Self-Reliance since it emphasizes in-country resourcing with enterprise-driven development. PSE is a strategic approach to planning and programming through which USAID consults, strategizes, aligns, collaborates, and implements with the private sector for greater scale, sustainability, and effectiveness of development or humanitarian outcomes..

7 USAID Private Sector Engagement Policy (PSE), pag 46.

PUBLIC-PRIVATE

PARTNERSHIPS (PPP)

PRIVATE SECTOR

PARTNER

GLOBAL DEVELOPMENT

ALLIANCE (GDA)

USAID

This type of engagement results in Public – Private Partnerships (PPP) and Global Development Alliances (GDA), which are a subset of the first.

Refers to “formal arrangements between public and private counterparties to share risks and rewards in the delivery of services and goods, characterized by joint planning, joint contributions, and shared risk”7. As defined in USAID’s FY 2019 Public Private Partnerships Data Reporting Guidance, a PPP is a collaborative working relationship in which the goals, structure, governance, roles, and responsibilities are mutually determined and decision-making is shared. PPPs are rooted in co-creation, co-design, and co-resource leverage towards a shared and mutually beneficial objective. Successful partnerships entail: complementary equities; transparency; mutual benefit; shared risks, and rewards, and accountability.

2.3.1.1 PUBLIC - PRIVATE PARTNERSHIPS (PPP)

https://www.usaid.gov/work-usaid/private-sector-engagement

9GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

PPPs differ from other ways of engaging the private sector such as contracting or granting a for-profit IP or sub implementer8. A PPP partnership requires private sector actors to collaborate, co-create, co-design and co-invest skills, technologies, other core business capabilities, or financial resources to achieve development outcomes.

PPPs can happen as a result of USAID direct or indirect engagement. The following graphs depict different partnership models:

DIRECT ENGAGEMENT

INDIRECT ENGAGEMENT

With PPPs the US Government (USAID/Colombia) is considered the public sector partner that provides funding. US Government resources must be invested in the common development objective of the partnership.

USAID USAIDPrivate Sector Partner

Private Sector Partner

Implementing Partner

Implementing Partner

ACTIVITY ACTIVITY

Funding flows / In-kind resources

Cooperation Agreement / MOU

USAID

Private Sector Partner

Implementing Partner

ACTIVITY

8 There may be cases in which Implementing Partners engage with the private sector through sub-contracts and/or sub-grants to develop common objectives initiatives that can be considered as PPPs. In these cases, the private sector must collaborate, co-create, co-design and co-invest skills, technologies, and include other core business capabilities, or financial resources to achieve common objectives. To be considered as PPP an agreement – additional to the sub-contract and/or sub-grant- should be documented in which the private sector agrees on collaborating, co-creating, co-designing and co-investing towards the common objective.

10GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

PPP Criteria: A PPP must meet all the following criteria to be counted as such:

1. A PPP must reflect the catalyzing effect that USAID/Colombia has had in the private business in order to contribute to development goals.

2. The PPP should be documented through a signed agreement between the partners (i.e cooperative agreements9). If a MOU is used to a formalize the PPP, it should include in the document the common objectives, resource contributions, geographies, and populations where the Private Third-Party Entity10 is investing.

3. The private sector counterparts and USAID/Colombia must have a common goal that is directly linked to the Activity’s goals and/or the Mission´s Development Objectives according to the current CDCS.

4. Relationships are horizontal, not vertical. A PPP is a joint partnership that incorporates some elements of formalized coordination with one or more private sector entities. This coordination is not characterized by a donor/grantee relationship (i.e. with USAID providing 99 percent of resources to the private sector entity) but rather by collaboration for mutual aims as defined above that results in development impact11.

5. The private partner´s contribution (in cash or in-kind) must be at least 30 percent of the total amount of the PPP12. Resources can take the form of: business expertise, advanced payments, and capabilities (advisory services, training, TA); market access, networks and resources, equipment and technology, volunteerism, for example13.

What is NOT a PPP

• A private sector entity managing resources received through an implementing partner to implement an Activity14. For instance, if the private sector is the contractor.

• A private company funding an event. Even if this event is not a PPP, the amount invested by the private counterpart can be counted as leveraged funds.

• A commercial transaction where a private company buys products such as raw materials/products to the population/smallholder associations. The value of the products bought by the private company can be counted as sales.

Note: If purchase agreements also include the provision of technical assistance and/or productive inputs to firms selling the products, these agreements can then be considered as PPPs. In this case, besides the purchase, there should also be a direct investment in a common objective.

There should be co-creation, co-design, and co-resource leverage. It should also comply with the seven criteria established for PPPs, to be considered and reported as such and documented in a formal agreement

9 To count as valid the document must clearly state the joint objectives, parties involved, resources to be contributed and implementation dates.

10 There may be cases in which USAID develops partnerships with the Private Sector jointly with other non- private sector partners such as Civil Society Organizations -CSOs-. In some of these cases, the agreement that formalizes the partnership can be signed just between USAID and the CSO, and afterwards this last entity creates the agreement where the Private Sector commits resources. These cases can be considered as PPPs if the agreement that the CSO has with the private sector, has the same common objective of the original agreement signed between the CSO and USAID and if it entails private sector collaboration, co-creation and co-design.

11 See footnote 10.

12 It is important to remember that purchases done by the private sector are not considered leverage, if they are only purchases of raw materials. These are considered solely purchases, not PPPs. However, if private sector purchases through an advance payment, these are considered leverage as the company is investing and taking an additional risk through USAID’s relationship.

13 These private sector contributions can be either leverage and/or cost share depending on the partnership structure . According to this criteria, a PPP would have 70% of USAID resources and 30% of private resources (taking into account the exception).

The resources coming from the community, civil society organizations and other public sector partners will not be counted on the PPP equation, but can be counted as leveraged resources outside a PPP, for instance.

14 There may be some cases in which a private sector entity managing resources can turn to be a partner in the frame of a PPP. In these cases, the private sector must collaborate, co-create, co-design and co-invest skills, technologies, and include other core business capabilities, or financial resources to achieve common objectives. To be considered as a PPP, an agreement - additional to the contract- should be formalized in which this private sector agrees on collaborating, co-creating, co-designing and co-investing towards the common objective.

Funding flows / In-kind resources

Implementing Partner

Private Sector Partner

USAID

ACTIVITY

11GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

6. During implementation, the partnership must achieve impactful results or important development lessons learned.

7. Ongoing initiative. A PPP involves continued work together, rather than a one-time interaction. The objective of the PPP should not be to develop short term initiatives such as events. It should entail a development initiative that contributes to improve the wellbeing of beneficiaries in a sustainable way.

8. Sustainability and the Journey to Self-Reliance. PPPs should be designed with a sustainability approach and should contribute to Colombia’s J2SR. In this context, sustainability is understood as the likelihood of long-term success of an alliance, that promotes private sector business growth and economic opportunities, corporate social responsibility, local ownership, leveraging local resources and expertise, and that increases the ongoing achievement of significant and enduring development results and impact over time.

EXAMPLE 1: PUBLIC - PRIVATE PARTNERSHIP (PPP)

2.3.1.2 GLOBAL DEVELOPMENT ALLIANCE (GDA)

GDAs are a subset of PPPs. GDA refers to partnerships directly involving USAID and the private sector where they jointly identify, define, and solve key business and development challenges. By working together USAID and the private sector are building mutually beneficial partnerships that leverage the respective expertise, assets, technologies, networks and resources to achieve greater development impact. GDAs should enable USAID and its partners to achieve a greater level of desired results and impact than would be achieved without the alliance. By effectively combining the partners’ distinctive resources and competencies, GDAs should accelerate and achieve development outcomes, results and impact at greater scale, with greater efficiency and effectiveness, and in a more sustainable manner than alternative approaches.

USAID/Colombia has been directly partnering with the private sector actively through GDA Activities for many years. For example, during 2019, eight GDAs were signed among USAID/Colombia and different types of private sector organizations. A few examples of this type of engagement are presented in Example 2.

A Public- Private Partnership (PPP) is:

• A commercial partnership where a private company provides either technical assistance, (like training) or productive inputs for the production process.

• In this case, USAID/Colombia has had an important role in working/incentivizing/partnering with the company, reflecting back to the Activity’s goals, the Mission’s CDCS, and the company’s development goals - a win-win situation for all parties involved.

Exception: The story and impact behind the partnership defines its validity as such.

• In cases where 30% is not applicable, there are exceptions for lower private sector partner contributions depending on the region, partners, and desired impact. Please make sure to talk with your COR/AOR and the Private Sector Engagement team at USAID/Colombia to discuss those specific cases.

• There are cases in which a private company invests less than 30% of the partnership, but the amount invested mades such a substantial development impact that couldn’t have been achieved without its funds.

12GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

GDA Criteria: A GDA must meet the following criteria to be counted as such:

• GDAs involve USAID and the private sector, and may also include a range of other partners.

• GDAs are built at the intersection of business interests and USAID development objectives.

This means it must have a common goal that directly links to USAID/Colombia’s Development Objectives.

• GDAs foster and advance market-based or market-driven approaches to development, including but not limited to “shared value” approaches that promote sustainable development results. This would promote ongoing, sustainable, and steadily expanding results.

• It must be formalized through a signed agreement between the partners (usually Cooperative Agreements, but other assistance mechanisms are possible as well).

• GDAs are co-created, co-developed, co-financed and entail extensive partnering and collaboration between USAID and the private sector.

• GDAs must mobilize and leverage private sector assets, expertise, capabilities and resources on at least a 1:1 basis.

• GDAs should enable USAID and its partners to achieve a greater level of desired results and impact than would be achieved without the alliance.

EXAMPLE 2:

GLOBAL DEVELOPMENT ALLIANCES (GDA)

Due Diligence

Due diligence is the necessary assessment of the past performance, reputation, and future plans of a prospective alliance partner, private sector, or other entity, with regard to various business practices and principles.

This assessment of a prospective alliance partner would normally involve, at a minimum, examining their social, environmental, and financial track records.

Conducting due diligence on potential resource partners reduces the reputational risk that business practices of a resource partner will come to light that reflect poorly on USAID, its implementing partners, and the U.S. Government.

Implementing partners are strongly encouraged to:

1) Complete a written due diligence for proposed private sector resource partners, to avoid any association that might reflect poorly on the reputation of USAID or the implementing partner, in accordance with the questions to consider set forth in the attached guidance;

2) Consult with the AOR/COR on any issues of concern that arise during the due diligence process; and

3) Include information on PPPs and due diligence findings in the annual work plan and reporting mandated by the terms of the award.

For information on Due Dilligence please go USAID/Colombia´s Guidance for Implementing partner Due diligence: indirect public private alliances.

GDA MODEL

Bussiness Interests

USAID

Development Goal

Alliance Opportunity

13GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.3.2 PARTNERSHIPS WITH NON-USG PUBLIC ENTITIES

Refers to formal arrangements between USAID and a host country government counterparts or international organizations and other international cooperation donors.

In these types of partnerships USAID/Colombia is not the only public partner.

2.3.2.1 GOVERNMENT TO GOVERNMENT (G2G)

G2G agreements refers to “when USAID disburses funds directly to a partner government entity, including all instances in which USAID finances a partner government entity of a bilateral foreign assistance recipient country to implement a project or project activity, including non-project assistance, using the partner government’s own financial management, procurement or other systems”.15

To support local ownership and enhance the sustainability of development results, USAID may provide government to government (G2G) assistance at the national and sub-national level.

G2G PARTNERSHIP MODEL - DIRECT ENGAGEMENT

USAID Government Partner

ACTIVITY

Funding flows / In-kind resources

Cooperation Agreement / MOU

PARTNERSHIP WITH NON-USG PARTNER MODEL - INDIRECT ENGAGEMENT

Funding flows / In-kind resources

Cooperation Agreement / MOU

USAID

Non-USG Partner

Implementing Partner

ACTIVITY

15 ADS 220.

14GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.3.2.2 OTHER GOVERNMENTAL ENTITIES

Partnerships with other government entities refers to smaller or local operating units of the GoC entities. This group may include agencies, sub directions, or technical offices like secretariats. These types of partnerships happen mostly through USAID indirect engagement (through implementing partners).

2.3.2.3 INTERNATIONAL ORGANIZATIONS AND OTHER DONORS

International Organizations and other donors refer to formal arrangements between USAID and organizations such as mechanisms from the United Nations System (e.g.

UN WOMEN, IOM, UNDP, WFP) and other donor entities. Mostly created through USAID´s direct engagement these partnerships allow aid resources to be complemented and avoid the unnecessary duplicity of actions. These partnerships create a strong international cooperation front and can foster a comprehensive response to regional development challenges.

2.3.3 PARTNERSHIP WITH CIVIL SOCIETY ORGANIZATIONS

Through USAID´s direct or indirect engagement these types of partnerships have been of great importance to USAID/Colombia. CSOs and their constituencies play a critical role on advocacy and service delivery, local systems strengthening, and ensuring the community´ appropriation of local development actions, all of which help to accelerate Self-Reliance.

It is important to highlight that in order to establish a partnership with a CSO, it must be formally registered as such. For example, non- profit organizations should be formally registered as such in a Chambers of Commerce, and Juntas de Acción Comunal through competent public entities that provide legal status.

2.3.4 PARTNERSHIP WITH MIXED-OWNERSHIP ENTITIES

As mentioned in section 2.2.4, mixed entities are those in which in Colombia, capital comes in part from private stakeholders and in part from Government of Colombia resources (at the national, departmental or municipal levels).

As clarified in that section the category Mixed Entities do not exist for USAID. They are either part of the Private Sector or of Non-USG public entities as pointed out in that section. The partnerships that are created with Colombian Mixed Entities- that are considered as part of the Private Sector according to the specifications presented in that section- will be considered as Public-Private Partnerships.

If you have doubts on how to categorize one of these entities, please contact your A/COR and or the USAID/Colombia Private Sector Engagement team to discuss those specific cases. In this link you will find the contact information of this team.

EXAMPLE 3: PARTNERSHIP WITH A MIXED ENTITY

https://docs.google.com/spreadsheets/d/1tuzNwFSkMifNQn5J-AqIUfxEU2JKXpl7Vh_4Dq2E-rQ/edit?usp=sharing

15GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.4 OTHER TYPES OF ENGAGEMENT

2.4.1 ALLIANCES FACILITATED BY USAID

This type of engagement happens when an implementing partner through its Activity acts as a convenor between Non-USG Government of Colombia (GOC) entities and private stakeholders to facilitate an alliance among each other. This is a type of engagement that is key to promote self-reliance in targeted geographies. USAID financial resources are invested in facilitating the partnership between the GOC and the private sector. In these cases, the USAID Activity facilitates the creation of the alliance convening the stakeholders. It may also facilitate stages of its implementation. The main purpose of USAID intervention in this model is to promote the sustainability of the alliance without USAID direct involvement16.

It is important to highlight that this is not considered a PPP since there are no direct investments for reaching the objective of the alliance. Third Party Funds are mobilized but not leveraged.

Please see Chapter 5 for indicators to report such alliances.

EXAMPLE 4: ALLIANCES FACILITATED BY USAID

ALLIANCES FACILITATED BY USAID

USAID Funding flows / In-kind resources

Non - USAID Funding flows / In-kind resources

Cooperation Agreement / MOU

USAID

Non-USAID Alliance between Public and

Private Sectors

Non-USG Partner

Private Sector Partner

Activity acts as a convener/facilitator of public and private stakeholders

Implementing Partner

ACTIVITY

NON-USG

PUBLIC ENTITIES

ALLIANCE

FACILITATED

PRIVATE SECTOR

PARTNER

16 In sections 31.1. and 3.1.3 the definitions and differences between leveraged and mobilized funds are explained.

USAID

16GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

2.4.2 MOBILIZATION OF RESOURCES

While USAID and other donors play an important role in development outcomes such as overcoming extreme poverty and promoting resilient and democratic societies, their assistance makes up only a small fraction of the overall need. However, when governments and local stakeholders gain the tools and knowledge needed to put their own resources to work and bring from other Third Parties, countries can move closer to ending extreme poverty while providing the social services and infrastructure on which vibrant, safe, and healthy societies depend.

In this context, USAID may play a number of roles. One of them is the role of catalyzing resources. In this case USAID is a convener of diverse public, private and civil society stakeholders to tackle an issue. USAID is a risk mitigator that facilitates investments17 all of which may result in the engagement of a Third Party (Public and/or Private) and the mobilization of resources towards achieving a development objective. Mobilized funds are those resources invested by public and/or private Third-Party entities to achieve development objectives enabled as a result of USAID efforts. As clarified further in section 3.1.3, mobilized funds are different from the leveraged and cost share funds invested through partnerships, since they are enabled because of USAID efforts but not directly invested in co-funding USAID interventions. However, these investments in many cases do respond to USAID development initiatives in targeted regions.

EXAMPLE 5: MOBILIZED FUNDS

2.4.3 PURCHASE AGREEMENTS

This refers to agreements made between a private or public buyer (e.g. Casa Luker, Federación Nacional de Cafeteros) and an formal productive association, where the association commits to deliver specific quantities of agricultural and /or livestock products under previously determined quality standards and the buyer commits to purchase the resulting products, in full or in part, at a previously fixed price.

These types of agreements aim to build strong commercialization channels and to strengthen local markets. These agreements allow, on the producers’ side, for more stability, a sustainable flow of resources and for the access of credits since the purchase agreements can be considered as a guarantee of income. On the buyers side, it allows them to have a constant local provider of products under specific quality standards and determined quantities.

There are two types of purchase agreements:

17 Partnering for Impact: USAID and the Private Sector.

https://www.usaid.gov/sites/default/files/documents/15396/Partnering_for_Impact.pdf

17GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

It is important to highlight and as mentioned in section 2.3.1.1 that if purchase agreements also include the provision of technical assistance or productive inputs to firms selling the products, these agreements can then be considered as PPPs. In this case, besides the purchase, there is also a direct investment in the objective of improving de sellers production capacity. If this alliance also complies with the other criteria established in section 2.3.1.1 for PPPs, then it must be considered and reported as such.

EXAMPLE 6: PURCHASE AGREEMENT EXAMPLE

1. Purchase before production has started, in which a sole buyer specifies quality standards of the product to be purchased (e.g., required productive inputs, best practices to be implemented) and a fixed price is agreed upon between the parties. In these cases buyers can make financial advances on the purchase.

2. Purchase after production, in which a buyer commits to purchase specific quantities of products under a fixed price, valid for a specific period of time.

1. INTRODUCTION

TPFs CATEGORIES

USAID

USAID

USAID

USAID RESOURCES LINKED TO

LEVERAGED

FUNDS

COST SHARE

FUNDS

MOBILIZED

FUNDS

3. THIRD-PARTY FUNDS

(TPFs) INDICATORS

3. THIRD-PARTY FUNDS (TPFs) INDICATORS

19GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

USAID/Colombia has developed a set of indicators to track its engagement with stakeholders and monitor its efforts to enable and influence Third-Party Funds towards its Development Objectives under the Mission’s strategy. Third-Party Funds are divided into three categories: i) Leverage, ii) Mobilized, and iii) Cost Share Funds.

These indicators must be included in the implementing partner´s AMELP according to the definitions set forth in this document.

The following sections will provide:

1. Third Party Funds definitions and key concepts necessary to understand when to apply this set of indicators.

2. Detailed information on how to measure and report Third-Party Funds indicators.

3. A description on how to report Third-Party Funds indicators in USAID/Colombia Monitor Information System.

LEVERAGED COST SHARE MOBILIZED

Direct and indirect engagement through partnerships Mobilization as a result of engagement

Catalyzing efforts

3. THIRD-PARTY FUNDS (TPFs) INDICATORS

19GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

20GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

3.1 THIRD PARTY FUNDS DEFINITION

Leveraging consists of USAID efforts to bring significant resources (cash or in-kind) from Third Party towards common intervention objectives, which must be established previously to the obligation by the Third Party; therefore this action requires negotiation, coordination and a legal binding between the Third Party and USAID implementing partners and must be included in the Activity or Sub-activity design.

The Third Party can be one or more entities providing resources. This does not mean that each party provides resources in equal amounts.

Leveraged funds are all resources from public, private and/or civil society organizations to co-fund or co-invest on common development USAID interventions (development policy, plan, program, pilot, project or activity), even if the funds are not directly transferred to the implementing partner.

Leveraged Funds do not include the economic flows generated in part or fully as a result of these interventions, for example: benefits such as sales of goods and services. Resources leveraged are used to co-fund or co-invest USAID intervention: they are not the economic flows generated by these interventions.

Leveraged Funds must meet the following criteria to each common intervention with USAID:

• Invested to achieve the same objectives.

• Co-founded or co-invested within the same timeframe of the intervention.

• Impact the same population and in the same geographical coverage.

To count, Leveraged Funds must be obligated by the Third Party, therefore these do not include funds that are still in an allocated or committed stage18. Leveraged Funds must be executed by the Third Party or entity acting on its behalf by transferring them to the implementing partner, or by shared execution of Activities between the Third Party and USAID or the implementing partner. Therefore, the Third Party and USAID share responsibilities in the execution and risks of the endeavor.

Leveraged funds are not subject to auditing.

Linkage between private leveraged funds indicators and PPPs

USAID is proactively seeking to build formal partnerships with the private sector to deliver sustainable development impacts, however, as mentioned above, there are a few cases in which a private partner can contribute resources to the development of an activity without having to establish a PPP.

Implementing partners should always consider that leveraged funds will originate from partnerships, defined by the criteria set on chapter 2.3.1.1 Public - Private Partnerships (PPP). However not all leveraged funds come from a PPP, such are the cases of donations, purchase agreements and cases where the private contribution is less than the 30 percent of the partnership.

It is important for implementing partners to talk with their C/AOR and the USAID/Colombia Private Sector Engagement team to discuss case by case specifics.

EXAMPLE 7:

LEVERAGED FUNDS

3.1.1 LEVERAGED FUNDS PUBLIC-PRIVATE

PARTNERSHIPS (PPP)

18 Section 3.2.9. specifies the scope of obligated resources.

21GUIDANCE FOR MONITORING USAID/COLOMBIA’S ENGAGEMENT WITH STAKEHOLDERS

DEFINITIONS AND MEASUREMENTS

Cost Share includes all resources (cash or in-kind) an implementing partner contributes to the total cost of a USAID Activity and that are auditable by the United States Government.

“Cost Share becomes a condition of an award (instrument or mechanism) when it is part of the approved award budget. The Cost Share must be verifiable from the recipient’s records; for U.S. organizations it is subject to the requirements of 2 CFR 200.306, and for Non-U.S. organizations it is subject to the Standard Provision, “Cost Share”; and is subject to be audited.”19

The concept applies to some of the requirements that the federal government agencies must follow when administering grants and cooperative agreements to U.S. Non-governmental organizations and Non-U.S.