RFA no. 72051723RFA00001- New Climate Adaptation Activity.pdf

Issue Date: July 3, 2023 Deadline for Question: July 12, 2023 Closing Date: August 3, 2023 Closing Time: 4:00 PM Eastern Standard Time

Subject: Request for Full Application (RFA) Number: 72051723RFA00001

Program Title: Climate Adaptation Activity

Federal Assistance Listing Number: 98.001- USAID Foreign Assistance Programs Overseas

The United States Agency for International Development (USAID) is seeking applications for a Cooperative Agreement from qualified entities to implement the Climate Adaptation Activity.

Eligibility for this RFA is not restricted.

USAID intends to make an award to an Applicant if it meets the objectives of this funding opportunity based on the merit review criteria described in this RFA subject to a risk assessment.

Parties interested in submitting applications are encouraged to read this RFA thoroughly to understand the type of program sought, application submission requirements, and the selection process. To be eligible for award, Applicants must provide all information as required in this RFA and meet eligibility standards in Section C of this RFA.

This funding opportunity is posted on www.grants.gov, and may be amended. It is the responsibility of the Applicant to regularly check the website to ensure they have the latest information pertaining to this RFA and to ensure that the RFA has been received from the internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion process. If you have difficulty registering on www.grants.gov or accessing the RFA, please contact the Grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

USAID may not award to an Applicant unless the Applicant has complied with all applicable unique entity identifier and System for Award Management (SAM) requirements detailed in Section D.6.g. The registration process may take many weeks to complete. Therefore, Applicants are encouraged to begin registration early in the process.

U.S. Agency for International Development Avenida República de Colombia #57, Altos de Arroyo Hondo Santo Domingo, D.N., Dominican Republic, 10605

Tel.: (809) 567-7775

RNC: 4-30-00171-6

http://www.usaid.gov/dr http://www.grants.gov http://www.grants.gov http://www.usaid.gov/where-we-work/latin-american-and-caribbean/dominican-republic

Please send any questions to the point(s) of contact identified in Section D. The deadline for questions is shown above. Responses to questions received prior to the deadline will be furnished through an amendment to this RFA.

Issuance of this RFA does not constitute an award commitment on the part of the Government nor does it commit the Government to pay for any costs incurred in preparation or submission of comments/suggestions of an application. An application is submitted at the risk of the Applicant.

All preparation and submission costs are at the Applicant’s expense.

Thank you for your interest in USAID programs.

Sincerely, Chadwick Mills Deputy Regional Agreement Officer (AO) Regional Office of Acquisition & Assistance (ROAA)

TABLE OF CONTENTS

SECTION A: PROGRAM DESCRIPTION 4

SECTION B: FEDERAL AWARD INFORMATION 33

SECTION C: ELIGIBILITY INFORMATION 35

SECTION D: APPLICATION AND SUBMISSION INFORMATION 36

SECTION E: APPLICATION REVIEW INFORMATION 48

SECTION F: FEDERAL AWARD ADMINISTRATION INFORMATION 51

SECTION G: FEDERAL AWARDING AGENCY CONTACT(S) 55

SECTION H: OTHER INFORMATION 56

ANNEXES 57

ANNEX 1 - DETAILED & SUMMARY BUDGET TEMPLATE 57

ANNEX 2 - STANDARD PROVISIONS 58

ANNEX 3 - BRANDING STRATEGY & MARKING PLAN TEMPLATE 63

SECTION A: PROGRAM DESCRIPTION

ANTICIPATED ACTIVITY NAME: Climate Adaptation Activity ANTICIPATED MECHANISM TYPE: Cooperative Agreement ANTICIPATED TOTAL BUDGET: $10 million ANTICIPATED TIMEFRAME: 5 years

I. JUSTIFICATION

The Dominican Republic (DR) is among the countries most vulnerable to climate hazards in the world . Intense storms often affect coastal areas and river banks, resulting in significant damages1 to infrastructure, natural resources, and livelihoods both in urban and rural settings. The effects of climate change have exacerbated these vulnerabilities, especially for marginalized communities and key economic sectors for the country, such as agriculture and tourism--which are both highly dependent on water security.

The United States Agency for International Development in the Dominican Republic’s (USAID/DR) resilience interventions including the Climate Adaptation Activity are planned as part of USAID/DR’s Border Resilience Project under USAID/DR’s 2020-2025 Country Development Cooperation Strategy (CDCS). The DR-Haiti border provinces are among the poorest in the country and have the most limited access to basic services, including water, which only 37 percent of border communities have reliable access to, with water delivery service only one to two times weekly. In the country’s Pact for Water 2021-2036, which outlines the country's2 commitments to better manage water, the Government of the Dominican Republic (GODR) reports that systems operate inefficiently with high technical and commercial water losses of 45 to 82 percent. The Pact for Water also notes that the poorest Dominicans—those in rural areas—often have the worst access and yet pay the most as a percentage of their income for bottled water and other forms of drinking water.3

This Activity targets the DR-Haiti northern border provinces of Santiago Rodríguez, Montecristi, and Dajabón which are home to important transboundary watersheds that supply water for human consumption, irrigation, and industrial use for towns on both sides of the border. These provinces have seen the highest increase in population density and city growth relative to other provinces in the region.4

Like the rest of the border, this target area has experienced a trend of severe increases in temperatures and reduction in precipitation. Erratic shifts in weather patterns in the target region result in extended droughts, reduction of aquifer recharge and water availability, degradation of water quality, and severe agricultural losses. These effects combined have led to several millions of dollars in economic losses, the need of water rationing, and more recently the intensification of

4 USAID. 2018. A Geospatial Analysis of Land Use along the Dominican Republic’s Border with Haiti. Dominican Republic.

3 USAID. 2022. WASH-FIN analysis of the National Survey of Household Income and Expenses, 2018 Central Bank of the Dominican Republic, https://www.bancentral.gov.do/a/d/4796-engih-2018

2 MEPyD. 2021. Monitor de la Frontera, boletín marzo 2021, MEPyD.

https://mepyd.gob.do/publicaciones/monitor-de-la-frontera-marzo-2021

1 Germanwatch. 2017, 2021. The Long-Term Climate Risk Index (CRI).

water-related conflicts between domestic, agricultural, and industrial users . It is worth noting that5 the province of Dajabon, which falls within the boundaries of the Dajabon watershed, is among the border provinces with highest forest cover canopy loss at 15.81 percent, compared to the national rate of 7.5 percent over the past 15 years . Furthermore, Dajabon has experienced6 the highest absolute increase in population (relative to the year 2000 values) and is the location of the largest free trade binational market .7

Although water for human consumption should be prioritized in water resource management plans, there are significant use and productivity issues, where much of the water is either misused, inequitably distributed, or lost due to poor storage capacity. Per the Ministry of Economy, Planning, and Development’s (MEPyD) estimates, the largest consumer of water - the agricultural sector, at 82 percent of water utilization - uses traditional methods of irrigation that waste 70 percent of what it consumes. Coupled with the challenges8 mentioned above, an integrated solution to water resource management is needed to ensure sustainable access to water services.

For this Activity, two critically important transboundary watersheds are considered: i) the Artibonito River, the largest watershed on the island, and ii) the Dajabon (Masacre) River basin, whose headwaters are located in the Northern DR-Haiti border region. These water systems not only provide essential access to surface water and groundwater for human consumption, but are also essential to food security, and to enable hydropower generation. These watersheds provide water to the Dominican border provinces of Elías Piña and Dajabón and their sister cities and provinces on the Haitian side. Additionally, the currently operative Peligre Dam in Haiti, and projected Joca and Dos Bocas hydropower development

8 MEPyD. 2021. Propuesta Compromiso Nacional Para Un Pacto Por El Agua 2021-2036. Dominican Republic.

7 USAID. 2018. A Geospatial Analysis of Land Use along the Dominican Republic’s Border with Haiti. Dominican Republic.

6 USAID. 2018. A Geospatial Analysis of Land Use along the Dominican Republic’s Border with Haiti. Dominican Republic.

5 MEPyD. Unidad Asesora de Análisis Económico y Social (UAAES). (2018, January 8). Pérdidas provocadas por los fenómenos naturales entre noviembre 2016 y septiembre 2017. Dominican Republic.

projects are located within the Artibonite river system. Hence, through the proposed Activity, USAID will support climate adaptation actions at the watershed level in either the Artibonito River watershed or the Dajabón River watershed.

A diversity of direct drivers of deforestation and forest degradation are common in the target area, including population growth, unsustainable agriculture, overgrazing, illegal and unregulated wood harvesting, as well as the replacement of native tree species with timber species that are incompatible with the local ecosystems. Similarly, secondary consequences of these drivers such as increased forest fires, agricultural expansion, soil erosion on steep hillsides and other extremely vulnerable areas, have led to greater landscape degradation, downstream sedimentation, lower agricultural productivity, loss of critical habitats for biodiversity, and has limited the capacity of natural vegetation and agroecosystems to recover from droughts and extreme storms.

The Artibonito watershed includes parts of the Nalga de Maco National Park and its buffer zone, which although are under strict protection, frequently face several environmental threats such as illegal smallholder agriculture, and illegal and unregulated timber extraction. These problems are highly prevalent, especially in the buffer zones, due to limited surveillance and enforcement.

Furthermore, in the Montecristi area, located in the lower slopes of the Dajabon watershed, there are large expanses of shrublands with high soil productivity, which are at high risk for unsustainable agricultural expansion.

GODR has prioritized climate change adaptation and mitigation in its development strategy and is working towards developing or updating its sectoral policies in order to address climate risk in an integrated and coordinated way. Moreover, the government has further committed to developing fiscal instruments and regulations that support the implementation of these sectoral policies, in an effort to streamline climate considerations across all sectors. In terms of preparedness and climate-responsive governance, country-level disaster risk management and climate adaptation policies either exist or are being developed, but implementation is weak due to lack of awareness, regulatory frameworks and enforcement, technical capacity, and funding.

Whereas development of climate services and adaptation strategies are advancing, key gaps still9 remain in multi-hazard analysis and tailored information products for specific users and applications at the local level. In addition, the capacity to incorporate this information into decision making at the national and local levels is limited and climate services are infrequently available to rural and marginalized communities. In line with USAID’s commitment to support the GODR in achieving its climate targets, the current Climate Adaptation Activity is proposed.

II. PURPOSE

The purpose of the Climate Adaptation Activity is to build climate change resilience by promoting water security and sustainable livelihoods through reduced pressures on key water sources, enhanced watershed governance, and strengthened adaptation practices of vulnerable

9 Climate services provide climate information to help individuals and organizations make climate smart decisions. Climate services equip decision makers in climate-sensitive sectors with better information to help society adapt to climate variability and change.

Taken directly from https://gfcs.wmo.int/what-are-climate-services as cited in https://pdf.usaid.gov/pdf_docs/PA00XC9V.pdf https://gfcs.wmo.int/what-are-climate-services https://pdf.usaid.gov/pdf_docs/PA00XC9V.pdf communities. This Activity will support locally-led development and catalyze private sector engagement to promote ownership and sustainability of climate adaptation actions, and their mitigation co-benefits, in the northern border region between the Dominican Republic and Haiti.

III. DEVELOPMENT HYPOTHESIS

If strong community engagement is fostered and financial opportunities are created to:

i) Reduce pressures on key ecosystems in the Artibonito and/or Dajabon watersheds;

ii) Implement nature-based and climate-smart adaptation solutions to strengthen water security for all users;

iii) Strengthen governance for climate-responsive integrated watershed management and planning benefiting water users; and

iv) Include user-informed climate services, including in critical farming, household, and industrial water-related decision-making;

THEN target communities and ecosystems will have increased water security and be more resilient to the impacts of climate change.

IV. RESULTS FRAMEWORK

Objective 1: Pressures on key ecosystems are reduced through sustainable forest management supporting climate change adaptation in targeted watersheds.

The protection and sustainable management of key ecosystems, including forests and riparian floodplains are critical to ensure water security in the targeted watersheds. Unsustainable charcoal production, land clearing for annual crops, and illegal logging are considered main drivers of deforestation and forest degradation. Thus, these activities lead to water insecurity affecting both surface and groundwater sources, in terms of quantity and quality.

Acknowledging forest protection carries a strong community engagement component, efforts under Objective 1 will seek to increase community participation, including youth and women, in forest protection and restoration activities, such as: a) adopting alternative forms of cooking, such as gas stoves, to decrease the demand for fuelwoods, b) strengthening community participation in locally-led monitoring and reporting of land-clearing events and other illegal activities, and c) promoting local reforestation and source water protection efforts. Community-led forest protection and restoration initiatives will be implemented in targeted watersheds with special emphasis in protected areas, buffer zones, and steep slope forests.

To reduce charcoal and other fuelwood-related deforestation pressures on targeted ecosystems, activities will provide financial incentives and technical expertise to adopt alternative cooking systems. In parallel, interventions will build social acceptance of these alternatives and work towards strengthening the capacity of key government officials and other local stakeholders on promoting the transition to more sustainable cooking methods. Through these efforts, communities will acquire knowledge, skills and access to financial opportunities for the conversion from charcoal cooking to sustainable cooking practices.

In collaboration with the Ministry of Environment and Natural Resources, the Activity will help increase the availability of anonymous, user-friendly reporting systems connected to national forest monitoring systems and local surveillance units to report on illegal logging and land clearing. Such efforts should lead to greater social pressure or advocacy against illegal land clearing and drive citizen demand for authorities to act upon those illegal activities, hence contributing to the reduction of pressures related to land clearing on targeted ecosystems.

Objective 1 will engage with watershed councils, the Ministry of Environment and Natural Resources, and other local and transboundary actors to advance reforestation, source water protection measures and seed bank projects, cultivating cross-border collaboration with similar projects on the Haiti side while also promoting the involvement of youth, women and other vulnerable groups. These activities should lead to enhanced stakeholder coordination and increased alignment, which in turn will maximize the impact of reforestation and source water protection investments and the responsiveness of relevant entities to local needs.

Objective 2: Climate smart practices are adopted by local farmers and the private sector, to increase resilience to the impacts of climate change.

Unsustainable farming practices overexploit water resources and are critical drivers of land degradation, which in turn result in the extreme vulnerability to climate change for smallholder agriculture and livestock production, leading to high levels of poverty and food insecurity for local communities.

Agriculture and animal husbandry are among the main economic activities in the target watersheds, and are especially critical for subsistence farmers in the border region of the Dominican Republic. Objective 2 seeks to: a) improve the technical capacities of small- to medium-scale farmers to use water efficiently so as to adapt to climate change, b) strengthen farmers associations to better negotiate with clients and produce more and higher-quality products, and c) engage with the private sector to develop climate-resilient business models for long-term sustainability.

The Activity will promote the construction of simple, farm-level nature-based water harvesting infrastructure, such as lagoons, to improve water storage and access in the short and medium term. In the long run, water source protection, sustainable land use management, and best management practices in agriculture will result in reduced runoff, sediment and nutrient loading, and an increase in water retention and infiltration. Private sector engagement to expand this component and propose market-based solutions is encouraged.

Through this objective the Activity will promote the adoption of climate-smart agriculture and sustainable alternatives to cattle ranching. The Activity will increase the technical and financial capacity of local producers to implement climate-smart agricultural and ranching practices, improving their ability to prevent, respond and adapt to climate risks, such as addressing flood control, reducing soil degradation, diversifying crops, etc. It is expected that by implementing climate-smart practices and improving business management skills, small- and medium-scale farmers will increase their crop yields, use natural resources more sustainably, and increase their overall income, becoming more resilient to the impacts of climate change.

Objective 2 will support farmer associations and/or cooperatives at the local level whose members already grow cash crops, such as coffee and cacao, by improving their technical, organizational, and financial capacities. Through stronger associations and cooperatives, farmers will be able to increase both the quality and the quantity of their products and increase their bargaining power with buyers interested in climate-smart products. Ultimately, as small-scale farmers gain technical abilities and start growing climate-smart cash crops, they will be better positioned to become part of these associations and in turn benefit from the association's access to bigger markets and business connections. Cost-benefit analyses are required for the development of economic activities.

Finally, Objective 2 relies on identifying private sector partners and connecting them with farmers, associations, and cooperatives to jointly develop business models that include climate considerations and promote climate-smart products, including exploring co-investment partnership opportunities with the private sector directly. This objective will build the capacity of communities to identify climate risks related to their economic activities and will strengthen engagement and partnerships with the private sector and other relevant stakeholders to support adaptation and access financing opportunities to implement these solutions. The Activity will incentivize and strengthen the capacity of private sector partners within key value chains to adapt to and mitigate climate risks in their business models and investment chains, supporting them to include climate change adaptation into core business interests. Lastly, the Activity will help identify public and private financing opportunities to fund and scale up pilot climate change adaptation productive activities.

These results should promote sustainable livelihoods and resilient value chains in the target geographic region, while reducing unsustainable agricultural and water management practices and land clearing. This will in turn promote healthy riparian forests and water sources and improve the ability of communities in the border region to adapt to the impacts of climate change while increasing their income.

Cost sharing is encouraged under this Activity. USAID shall make the final determination and assess whether or not the Applicants’ cost share contributions (e.g. categories or items) meet the standards set in 2 CFR 200.

The Applicant should use USAID/DR funding as an incentive to leverage funds from other sources, which can be used to build the foundation for sustained climate resilience and rural economic development. The Applicant and its partners are expected to collaboratively establish sustainable mechanisms that promote climate resilience in key economic sectors in targeted upper watersheds. Leveraged resources, defined as financial and in-kind contributions or investments (such as equipment, training, level of effort, and any in-kind contributions), which enable the achievement of results, could include resources from joint ventures, commercial partnerships, and institutions, among other types of partnerships. Within these parameters, the Applicant is expected not only to quantify the resources leveraged which will be provided in terms of cash and in-kind contributions, but to also explain how it will engage robustly with the private sector to achieve Objective 2.

Objective 3: Watershed governance is strengthened to benefit water users through an integrated climate-sensitive approach.

Effective, well-coordinated, and technically-sound watershed management is essential to provide water security and to promote health and sustainable livelihoods, thus providing multiple economic, social, cultural, and ecological benefits, while improving climate-change resilience.

Guided by the country’s climate change commitments and national climate policies, the country10 has recently started to incorporate climate considerations in watershed plans, as well as to implement climate action to promote resilience at the community level. Objective 3 aims to develop mechanisms to better align programming and approaches to local needs, and country-level priorities. The proposed strategy includes three components: i) increasing local awareness and capacities on watershed planning and promoting water security; ii) developing socially, culturally, and technically-sound management plans; and iii) producing and launching a comprehensive plan for climate funding as part of the watershed management plans.

First, Objective 3 will seek to improve climate-resilient watershed management planning and budgeting among local authorities, at the municipal, watershed and subwatershed council levels.

For example, Objective 3 will consider leveraging existing mechanisms such as the participatory municipal planning process. Water committees and water service providers are part of these councils and are in charge of ensuring that the water access needs of communities are met.

Watershed management plans are programming tools that can guide the protection, and sustainable use of water and other natural resources at the watershed-level, incorporating social, political, ecological and economical considerations. Thus, Objective 3 foresees the development of well-coordinated, and technically sound watershed management plans that can promote water security, including ensuring equitable access to water for human consumption, while supporting livelihoods. Objective 3 will emphasize the provision of the necessary technical expertise to local authorities as well as multi-level governance bodies to complete and validate watershed management plans using an integrated, climate-sensitive approach.

The Activity will support GODR coordination efforts with stakeholders, including private actors and community organizations, to properly align programing and approaches to local needs and aspirations. This way, localized and system-driven approaches will result in stronger planning processes, which in turn will promote more equitable water resource allocation and sustainable use.

The strengthening of watershed councils will also include the development of inclusion guidelines and participatory platforms through which to convene traditional and non-traditional actors including migrants, Dominicans of Haitian descent, and other vulnerable groups, thereby

10 The Dominican Republic has a National Policy for Climate Change (2016) and a National Adaptation Plan (2015) that guide climate action in the country, in addition to sector-specific plans and policies, such as the National Strategy for Adaptation to Climate Change in the Agricultural Sector (2014-2020).

increasing their participation in relevant decision-making processes. Community involvement in planning spaces through system-driven approaches that identify and include all stakeholders within the system should be at the forefront of integrated and inclusive water resource planning efforts. Activities under this objective should contribute to increasing awareness and capacity through active engagement of local stakeholders in decision-making processes and transboundary coordination to address water security challenges.

At the transboundary level, Objective 3 will focus on supporting coordination between watershed councils on both sides of the border, facilitating dialogue platforms, improving clarity around the roles and responsibilities of different actors in each country, and promoting common understanding of priorities and plans. Improved watershed governance and transboundary coordination should lead to more efficient use of resources, thereby reducing unsustainable land use and water management and increasing water resilience.

Objective 3 will advance the identification of potential funding sources for implementation of such plans, and support preparations for the early stages of implementation, as needed. For example, the Activity can explore the potential to participate in a carbon credit program (to validate, monitor, and verify carbon gains), sell credits in voluntary carbon markets, and incentivize climate-smart practices and business models.

Objective 4: Climate services are used by local stakeholders, including farmers, water service providers, and government officials, in critical decision making to improve their water security and adapt to climate change.

The active participation of end users on climate services, including data collection, validation and dissemination, is critically important to support optimal decision-making and climate action.

Adding a focus on co-designing with users the climate information data sets and communication channels will help to ensure the information is useful for and tailored to user information needs and readily accessible to them. Objective 4 will build the capacity of water users to use hydrometeorological early warning data for early action to promote resilience.

Climate information is a powerful tool for making climate-smart decisions. The DR has made significant advances in this respect through the establishment of the Climate and Resilience Observatory and other government institutions that collect and monitor climate patterns at the national level. This objective seeks to make climate information relevant, accessible, and useful to water users, particularly farmers, water service providers and governments, for making decisions that improve their ability to adapt to climate change, mitigate risks, and achieve place-based resilience. To do this, Objective 4 will focus on improving the understanding of the climate data that already exists in the DR at the national, regional, and local levels, as well as to address data gaps and needs that must be filled to enable local decision making (i.e., what kinds of climate and weather information do farmers need to improve their livelihoods and become more resilient to climate change?; What kinds of climate and weather information do water service providers need to enhance operations and maintenance and become more resilient to climate change?).

Objective 4 will support the interpretation of data into meaningful information that best suits stakeholders’ decision-making needs in the field. This includes using a participatory and locally-led approach to select the best tools for accessing climate information, while considering the socio-economic context of the Activity. Finally, Objective 4 seeks to establish public-private partnerships from the outset in order to create financial sustainability for the provision of such climate information and the necessary tools. Partnerships with universities, government entities, and NGOs can provide leverage and promote continuity beyond the Activity’s timeline.

V. GEOGRAPHIC AND POPULATION TARGETING

Consistent with USAID/DR’s Country Development and Cooperation Strategy (CDCS) target geography and the regions prioritized under its Border Resilience Project, this Activity will focus on key sub-watersheds of the Dajabon and Artibonito River watersheds. Applicants must choose to work in either one of the two watersheds where proposed activities can maximize impact and promote the scale up of climate action. Activities must be designed at the sub-watershed level, and Applicants must provide a strong justification for the selection of at least one sub-watershed within the selected watershed where activities will take place to allow for scalable interventions and effective monitoring. Activities must focus in middle and upper watershed regions. Activities will be implemented on the DR side of the border, however, coordination efforts with Haiti are required.

In addressing development challenges in the DR through this Activity, interactions and linkages with Haiti must be taken into account given the interconnectedness and economic interdependence between the two countries. The DR and Haiti are active trading partners, and economic fluctuations have clear and direct transboundary impacts in both countries. Successful conservation and management of natural resources, including crucial potable water resources, requires integrated watershed management through transboundary collaboration to connect stakeholders in both countries. The Award Recipient will be expected to leverage or strengthen existing transboundary coordination mechanisms, such as watershed councils, that would help advance integrated watershed management.

When selecting implementation sites, the applications should address the success and financial, environmental, and social sustainability of the Activity. The below principles should help frame the sustainability strategies of the Activity and to aid the selection of target sub-watersheds:

- Partnerships with GODR: The Activity should seek commitment by GODR to improve water resource management in key transboundary watersheds. The success of the Activity will rest on a strong partnership and collaboration with GODR at the national and local levels.

- Engagement with local communities and local organizations: Local non-government organizations are considered as important stakeholders for the implementation of this Activity through collective action approaches. The Activity should seek commitment by communities and other stakeholders at the local level, and across both sides of the border to collectively address shared challenges related to land degradation and unsustainable natural resources management.

- Private sector partnerships: The Activity should identify key areas that would benefit most from private sector contributions and how these contributions help achieve Activity goals faster, cheaper, more efficiently, more inclusively and sustainably. The Activity should also assess the potential for continued financing from the private sector beyond Activity closure.

- Integration and system-driven development: The Activity must be able to show ability to intentionally integrate the whole system to contribute to the overall implementation success in an equitable way and through locally-led approaches.

- Innovation and technology: The Activity should utilize available innovative tools to improve the capacities of stakeholders, climate services, climate-smart interventions, monitoring and implementation, and engagement with communities in awareness raising and behavior change campaigns.

- Elevating youth (aged 10-29 years) and promoting gender and social inclusion: The Activity should take into account sensitivity towards specific needs and impact on women, youth, and vulnerable populations, including but not limited to people with disabilities, the Lesbian, Gay, Bisexual, Transexual, Queer, and Intersex (LGBTQI+) community, migrants, Dominicans of Haitian Descent, and undocumented people. Working strategies need to be culturally sensitive and appropriate to meet the needs of the target groups.

- Focusing on impact and scale: The Activity must work at a broader scale to successfully promote water security and climate resilience, so it is critical to take impact and scale into serious consideration.

- Collaboration with other donors: The Activity must explore when appropriate the potential for leveraging ongoing or recently closed initiatives funded by other donors, in addition to potential for collaboration and complementarity with USAID/Haiti and/or other USAID/DR activities along both sides of the northern border region. The Activity must engage with recently closed or ongoing initiatives that are complementary and can be leveraged.

- Site selection: Areas where unsustainable agriculture production and water management practices, deficient infrastructure - transportation and irrigation systems - have led to serious environmental degradation, putting at risk key economic activities and resilience capacity of communities living along the watershed.

In line with USAID/DR’s CDCS, the Climate Adaptation Activity will focus on border populations and systems. Focus populations targeted should include the vulnerable, underserved, and underrepresented -- Dominicans of Haitian-descent, youth, LGBTQI+ persons, and people with disabilities, women, and socio-economically disadvantaged groups. Elevating these populations means directly addressing inequality, open government, quality and inclusive service provision, and community strengthening. Therefore, this Activity will contribute to the CDCS priority of inclusive development as it promotes the rights and inclusion of marginalized and under-represented populations and addresses the environmental, economic, and social needs of these disproportionately affected populations.

Including communities and other key stakeholders in decision-making through system-driven approaches during design and implementation will be required under this Activity. Systems targeting is based on a systems thinking approach, viewing development challenges in the context of a network of stakeholders within a system and how they address their development challenges to meet their needs in an integrated and inclusive way. USAID’s interventions thus should be designed to impact systems in a way that promotes collective action and increases capacities and community engagement that multiply effects across the system and strengthen locally-led development.

VI. RISKS

Based on the available literature and extensive consultation with key stakeholders, the following potential risks and contextual factors have been identified that could undermine the Activity’s development hypothesis.

PROGRAM RISKS

A. Risks (Objectives 1 and 2): Target population is not ready to adopt new practices and technologies.

a. Potential Impact: Target population refuses or lacks interest in adopting proposed alternate ways of cooking (Objective 1); target population refuses or lacks interest in adopting climate-smart agricultural practices (Objective 2).

i. Mitigation Measure: (i) Identify community leaders in the area to model the behavior or new practice; (ii) Target youth as agents of change to model the behavior and new practice; and (iii) Develop an outreach or behavior change strategy based on people’s perceived barriers or drivers for the adoption of the new practices.

ii. Mitigation Measure: Recognizing that the proposed intervention may not be appropriate for all geographic locations, the Award Recipient must consult with beneficiaries and other stakeholders to assess the most appropriate solution within the operating context.

b. Potential Impact: Communities do not recognize that they should assume responsibility for their problems or contribute to addressing their development challenges, and prefer to rely on the government.

i. Mitigation Measure: (i) “Locally-led” solutions are generated by the communities to motivate ownership; (ii) Develop activities in a way that encourages cost-share by the communities/beneficiaries (in money or in kind) to procure seedlings and/or other inputs, thereby securing commitment and sustainable adoption of best practices.

B. Risk (Objective 2): Decreased interest and investment from the private sector in sustainably sourced, organic, specialized, and/or fair trade products due to market fluctuations, or low or poor quality yield.

a. Potential Impact: Lack of demand for climate smart agricultural products due to potential higher prices.

i. Mitigation Measure: Shift programmatic focus initially towards the public sector to create an enabling environment that incentivizes the private sector’s interest.

ii. Mitigation Measure: Include the private sector at the onset of program implementation to understand their challenges and business models, and gain their buy in.

iii. Mitigation Measure: Connect farmers with credible certification and labeling systems to create, sustain, and grow this demand.

iv. Mitigation Measure: Work with International Financing Institutions (IFIs), Development Finance Corporation (DFC), and local banks or cooperatives, to ensure favorable terms on loans, insurance, and financial products.

C. Risks (Objectives 3 and 4): Lack of interest from local or watershed level authorities to act upon or get truly involved in watershed management efforts. Additional risks include potential high staff turnover that occurs in most governments which can result in delays or periods of inactivity.

a. Potential Impact: Climate risk considerations, adaptation tools, approaches, and commitments are not supported at higher governing levels (district, national, etc).

i. Mitigation Measure: Foster dialogue (consensus-building) with key stakeholders e.g. government organizations and the private sector to ensure strong buy-in upfront.

ii. Mitigation Measure: MOUs at higher governing levels provide understanding with governments for the lifetime of the Activity and beyond.

iii. Mitigation Measure: Promote the integration of climate information services and water resource governance tools, approaches, and methodologies as best practices in protocols, plans, and regulatory frameworks to ensure standardization and potential scaleup.

CONTEXT RISKS

A. Risks (Objectives 1, 2, 3, and 4): Political unrest in Haiti and/or binational conflict over resources may undermine or disrupt Activity achievements.

a. Potential Impact: Haitian internal political conflict and/or binational border conflicts can affect targeted border areas thereby delaying/halting program implementation.

i. Mitigation Measure: Continuous dialogue (consensus-building) with key stakeholders e.g. government organizations and the private sector to ensure strong buy-in upfront.

ii. Mitigation Measure: Leveraging existing coordination platforms, such as the Water Table of the DR-Haiti Mixed Bilateral Commission, and developing MOUs that outline a shared vision and development agenda to ensure there is a common understanding between governments and stakeholders at a transboundary level.

iii. Mitigation Measure: Understanding of political culture and key decision-makers upfront. Leveraging these connections to minimize impact.

B. Risks and Assumptions (Objectives 1, 2, 3, and 4): Operational challenges due to climate (extended periods of drought, natural disasters potentially resulting in humanitarian crises, e.g. floods, hurricanes, etc).

a. Potential Impact: Program implementation delays.

i. Mitigation Measure: Ensure early understanding of climate risks and embed mitigation measures into the implementation plan of the Activity.

ii. Mitigation Measure: Focus on building the enabling environment for the medium and long term.

b. Potential Impact: Divergence in goals or need to pivot due to changes in immediate needs/priorities.

i. Mitigation Measure: Adaptively manage change and impact at the ground level by developing mechanisms for regular check-in/feedback to ensure that the Activity meets beneficiary needs.

ii. Mitigation Measure: Ensure detailed Collaboration, Learning, and Adapting (CLA) strategy is in place to mitigate changes as they come along.

iii. Mitigation Measure: Establish a project management charter which defines internal roles and responsibilities at the local and regional level, and external stakeholder engagement.

VII. ADAPTIVE MANAGEMENT

Refine and Implement The USAID/DR Mission will work closely with the Award Recipient during the post-award co-creation model known as Refine and Implement (R&I) which is intended to improve the activity design, appropriateness for context, and implementation planning. During initial refinement, the new awardee may carry out a number of interventions including traditional start-up tasks and additional activities, such as: conducting additional assessments to address knowledge gaps; community and other stakeholder engagement through participatory or system-driven approaches for strengthened local partnerships, capacity development, and coordination; conducting additional stakeholder consultations; refining the Theory of Change and results model; etc. The Award Recipient must bring the private sector onboard early on during the R&I stage and throughout all co-creation phases to ensure their buy-in and commitment to establish partnerships. At the end of the Refinement Period, the Award Recipient and USAID/DR will agree on a revised Theory of Change and results model, and other key approaches or strategies, such as the Activity’s social and behavior change strategy or the Activity’s private sector engagement strategy. The Award Recipient will be encouraged to continue employing principles of adaptive management and ‘refinement’ approaches throughout the life of the award.

Required Assessments The below assessments are either required per USAID’s Automated Directives System (ADS) 201 or are considered necessary to inform the design and implementation of the Climate Adaptation Activity. These will also inform the Monitoring, Evaluation, and Learning (MEL) of this Activity.

Some of the analyses referenced below have already been completed as part of the CDCS design process. Others may have already been conducted by other parties, including the private sector, think tanks, host governments, other donors, and universities.

In addition to the required assessments and analyses, other consultations and/or assessments must be conducted if the Award Recipient deems it necessary during the initial refinement stage.

● Cost benefit and market assessment for high-value crops Conducting an economic and financial cost-benefit analysis is a good practice and recommended during the implementation of this Activity. Specifically, for the implementation of Objective 2:

Climate smart considerations are incorporated into the practices of local farmers and the private sector to increase resilience to the impacts of climate change, USAID/DR wants to ensure that markets exist for products (e.g., carbon mitigated, sequestered, avoided) and services (e.g., user fees for water and access fees for wood or charcoal), and that those prices reflect their relative scarcity impacts on climate. If a cost-benefit analysis has already been conducted then it could be referenced and utilized instead of developing one as part of the Activity.

● Gender and Inclusive Development Analyses The Climate Adaptation Activity will support gender equality, women’s empowerment and the inclusion of vulnerable groups and must ensure alignment with GODR’s initiative under the Gender and Climate Change Action Plan (PAGCC-RD). The Activity should also refer to the USAID/DR Mission’s Gender and Inclusive Development Analysis (GIDA) and conduct an additional rapid needs assessment (recommended no longer than 3 to 5 pages) specific to this sector and geographic area to evaluate gender and inclusive development needs within the first six months of award.

The findings and recommendations obtained from the GIDA and the needs assessment, should be integrated in the work plan of the Activity, added to mandatory reports, and reviewed, if applicable, every year. For specific guidance on how to conduct a GIDA, refer to the USAID Suggested Approaches for Integrating Inclusive Development Across the Program Cycle.

Applicants will maintain a commitment to nondiscrimination towards beneficiaries or potential beneficiaries and will develop a strategy for including marginalized populations into the work plan, including information on how the Activity will benefit the different marginalized groups.

Applicants must show that the Activity takes into account the variety of different needs and approaches required to reach marginalized populations. The work plan should demonstrate:

● An understanding of the issues facing each marginalized group,

● What specific needs and interventions are required to reach targeted marginalized groups,

● Specific strategies to ensure the different marginalized groups are able to access Activity’s services, and

● A plan to ensure the safety of marginalized groups while accessing the Activity’s services.

Applicants should include concrete and practical approaches that address the challenges that marginalized groups face in accessing the Activity’s services, and also involve and consult local civil society organizations representing marginalized groups.

https://www.usaid.gov/dominican-republic/documents/gender-and-inclusive-development-assessment-dominican-republic

● Environment The Climate Adaptation Activity aims to maintain and restore natural resources in targeted watersheds such as forested areas and critical buffer zones in key water source areas upon which economic growth depends, with the purpose of supporting climate, ecosystem, and livelihood resilience. The Activity will also account for the adverse impacts the Activity might have on the environment. The Activity design has used baseline environment status information generated in the tropical forest and biodiversity analyses (FAA 118/119) completed for both Haiti and the DR within the past four years. The Activity must comply with USAID's environmental regulations, as mandated in 22 CFR 216 and ADS 204. The Foreign Assistance Act (FAA) 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. Similarly, sections 118(e) and Section 119(d) of the FAA, as amended, requires that each country development strategy statement or other country plan prepared by USAID shall include an analysis of the actions necessary in that country to achieve conservation and sustainable management of tropical forests, and an analysis of the actions necessary in that country to conserve biological diversity. This mandate is codified in Federal Regulations (22 CFR 216) and in USAID’s 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. In addition, the Award Recipient must comply with host country environmental regulations unless otherwise directed in writing by USAID. In case of conflict between host country and USAID regulations, the latter shall govern.

● Climate Risk Management The Activity shall promote, where possible, the introduction of new technologies or practices to improve resilience of targeted value chains to climate hazards including increasing temperatures, shifting rainfall patterns, and more frequent drought in collaboration with producers, farmer associations, and the public and private sectors involved in these value chains.