USAID_Green_Invest_Asia_-_SOL-486-17-000004.pdf

Issuance Date: March 1, 2017

Questions Due Date: March 8, 2017

Questions Due Time: 9:00 a.m., Bangkok time

Closing Date: April 12, 2017

Closing Time: 4:00 p.m., Bangkok time

Subject: Request for Proposals (RFP) No. SOL-486-17-000004, USAID Green Invest Asia

The United States Agency for International Development (USAID) is seeking proposals from

U.S. or non-U.S. non-profit or for-profit organizations to achieve the objectives set forth in the attached Request for Proposals (RFP). USAID anticipates awarding one cost-plus-fixed-fee

(CPFF) type term form contract with a period of performance of 5 years. The North American

Industry Classification System (NAICS) code for this acquisition is 541990. The authorized geographic code is 937.

This procurement will be conducted under full and open competition procedures, pursuant to Part

15 of the Federal Acquisition Regulation (FAR) (48 CFR Chapter 1). Please refer to Section L for information regarding proposal requirements. Offerors should take into account the expected delivery time required by the proposal transmission method they choose, and they are responsible for ensuring proposals are received at USAID by the due date and time as specified on the cover page. Faxed proposals are not acceptable, nor will they be reviewed or evaluated.

Section L of the RFP sets forth all instructions for the preparation and submission of required proposal contents, including critical dates/times for the submission of questions, and the proposal submission closing date and time. Section M states the criteria by which proposals will be evaluated. Oral explanations or instructions given before award of the Contract will not be binding.

This RFP in no way obligates USAID to award a Contract nor does it commit USAID to pay any cost incurred in the preparation and submission of a proposal. Award of a Contract under this RFP is subject to availability of funds and other internal USAID approvals.

This RFP can be viewed and downloaded from www.fedbizopps.gov. USAID bears no responsibility for data errors resulting from transmission or conversion processes. Further, be aware that amendments to solicitations are occasionally issued and will be posted on the same website from which you downloaded the solicitation. USAID advises to regularly check the above website for amendments.

http://www.fedbizopps.gov/

Solicitation No: SOL-486-17-000004

USAID/RDMA

Sincerely, /S/

Bruce Gelband

Regional Contracting Officer

USAID, RDMA, Bangkok, Thailand

SOL-486-17-000004

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 149

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

12. In compliance with the above, the undersigned agrees, if this offer is accepted within ______________ calendar days (60 calendar days unless a different period is inserted

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

REQ-486-17-00000503/01/2017

X

RDM/A

Regional Office of Procurement Regional Development Mission/Asia Athenee Tower 25th Floor 63 Wireless Road, Pathumwan Bangkok, Thailand 10330

1600 G 04/12/2017

Agnes Tusjak 662 atusjak@usaid.gov

257-3024

X

X

X

X

X

X

X

X

X

X

X

X

X

PAGE(S)

Bruce Gelband

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

TABLE OF CONTENTS

PART I - THE SCHEDULE

SECTION A – SOLICITATION/CONTRACT FORM

TABLE OF CONTENTS

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

PURPOSE ........................................................................................................................ 8 B.1

CONTRACT TYPE ......................................................................................................... 8 B.2

ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT ............................. 8 B.3

PRICE SCHEDULE ......................................................................................................... 9 B.4

INDIRECT COST ............................................................................................................ 9 B.5

CEILING ON INDIRECT COST RATES ....................................................................... 9 B.6

COST REIMBURSABLE .............................................................................................. 10 B.7

PAYMENT OF FIXED FEE.......................................................................................... 10 B.8

MULTI-YEAR CONTRACT ........................................................................................ 11 B.9

SECTION C – DESCRIPTION / SPECIFICATIONS / STATEMENT OF WORK

TITLE OF ACTIVITY ................................................................................................... 12 C.1

PURPOSE ...................................................................................................................... 12 C.2

BACKGROUND ............................................................................................................ 12 C.3

STATEMENT OF WORK ............................................................................................. 15 C.4

SECTION D - PACKAGING AND MARKING

D.1 AIDAR 752.7009 MARKING (JAN1993)

D.2 BRANDING IMPLEMENTATION PLAN AND MARKING PLAN

SECTION E - INSPECTION AND ACCEPTANCE

E.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE . 28

E.2 INSPECTION AND ACCEPTANCE/RESPONSIBLE OFFICIAL

SECTION F - DELIVERIES OR PERFORMANCE

F.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE . 29

F.2 PERFORMANCE PERIOD

F.3 PLACE OF PERFORMANCE

F.4 PERFORMANCE STANDARDS

F.5 KEY PERSONNEL

F.6 REPORTS AND DELIVERABLES OR OUTPUTS

F.7 TECHNICAL PROFESSIONAL LEVEL OF EFFORT

F.8 AUTHORIZED WORK DAY/WEEK

SECTION G - CONTRACT ADMINISTRATION DATA

NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE . 42 G.1

CONTRACTING OFFICER .......................................................................................... 42 G.2

CONTRACTING OFFICER’S REPRESENTATIVE (COR) ....................................... 42 G.3

CONTRACTOR’S PRIMARY POINT OF CONTACT ............................................... 42 G.4

PAYING OFFICE .......................................................................................................... 42 G.5

ACCOUNTING AND APPROPRIATION DATA ....................................................... 43 G.6

TECHNICAL DIRECTION/RELATIONSHIP WITH USAID .................................... 43 G.7

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 USAID-FINANCED THIRD-PARTY WEB SITES (AUGUST 2013)

H.2 SUBMISSION OF DATASETS TO THE DEVELOPMENT DATA LIBRARY (DDL)

(OCTOBER 2014)

H.3 ADDITIONAL REQUIREMENTS FOR PERSONNEL COMPENSATION

H.4 AUTHORIZED GEOGRAPHIC CODE

H.5 DEFENSE BASE ACT (DBA) INSURANCE

H.6 LOGISTIC SUPPORT

H.7 LANGUAGE REQUIREMENTS

H.8 EXECUTIVE ORDER ON TERRORISM FINANCING (FEB 2002)

H.9 FOREIGN GOVERNMENT DELEGATIONS TO INTERNATIONAL

CONFERENCES (JAN 2002)

H.10 PROHIBITION OF ASSISTANCE TO DRUG TRAFFICKERS

H.11 NONEXPENDABLE PROPERTY PURCHASES AND INFORMATION

TECHNOLOGY RESOURCES

H.12 TITLE TO AND CARE OF PROPERTY

H.13 MANAGEMENT OF INFORMATION TECHNOLOGY RESOURCES

H.14 ENVIRONMENTAL COMPLIANCE

H.15 EXCHANGE VISITORS AND TRAINING

H.16 GOVERNMENT FURNISHED FACILITIES OR PROPERTY

H.17 COMPLIANCE WITH SECTION 508 OF THE REHABILITATION ACT OF 1973,

AS AMENDED

H.18 ELECTRONIC PAYMENTS SYSTEM

H.19 RESTRICTIONS AGAINST DISCLOSURE (MAY 2016)

H.20 ELECTRONIC AND INFORMATION TECHNOLOGY ACCESSIBILITY (MAY

2016)

H.21 CLOUD COMPUTING (MAY 2016)

H.22 USAID’S PERFORMANCE MANAGEMENT INFORMATION SYSTEM

H.23 ADDITIONAL APPROVAL REQUIREMENTS

H.24 HUMAN RIGHTS VIOLATIONS AND SANCTIONS PROGRAM IN BURMA

(JUNE 2015)

H.25 USAID/RDMA COMMUNICATIONS AND OUTREACH REQUIREMENTS

H.26 INHERENTLY GOVERNMENTAL AND CLOSELY ASSOCIATED FUNCTIONS

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES

I.1 NOTICE LISTING CONTRACT CLAUSES INCORPORATED BY REFERENCE . 67

I.2 52.203-19 PROHIBITION ON REQUIRING CERTAIN INTERNAL

CONFIDENTIALITY AGREEMENTS OR STATEMENTS (JAN 2017)

I.3 52.204-1 APPROVAL OF CONTRACT (DEC 1989)

I.4 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.5 52.222-35 EQUAL OPPORTUNITY FOR VETERANS (OCT 2015)

I.6 52.222-36 EQUAL OPPORTUNITY FOR WORKERS WITH DISABILITIES (JUL

2014)

I.7 52.222-50 COMBATING TRAFFICKING IN PERSONS (MAR 2015)

I.8 52.227-23 RIGHTS TO PROPOSAL DATA (TECHNICAL) (JUN 1987)

I.9 52.229-8 TAXES - FOREIGN COST-REIMBURSEMENT CONTRACTS (MAR

1990)

I.10 52.247-67 SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT

(FEB 2006)

I.11 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

I.12 AIDAR 752.229-71 REPORTING OF FOREIGN TAXES (JULY 2007)

I.13 AIDAR 752.231-71 SALARY SUPPLEMENTS FOR HOST GOVERNMENT

EMPLOYEES (MAR 2015)

I.14 AIDAR 752.7005 SUBMISSION REQUIREMENTS FOR DEVELOPMENT

EXPERIENCE DOCUMENTS (SEP 2013)

I.15 AIDAR 752.7027 PERSONNEL (DEC 1990)

I.16 AIDAR 752.7032 INTERNATIONAL TRAVEL APPROVAL AND NOTIFICATION

REQUIREMENTS (APR 2014)

I.17 AIDAR 752.7034 ACKNOWLEDGMENT AND DISCLAIMER (DEC 1991)

I.18 AIDAR 752.7101 VOLUNTARY POPULATION PLANNING ACTIVITIES (JUNE

2008)

PART III – LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS

SECTION K - REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS

OF THE OFFEROR

K.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

K.2 52.204-8 ANNUAL REPRESENTATIONS AND CERTIFICATIONS (JAN 2017) .. 91

K.3 52.209-5 CERTIFICATION REGARDING RESPONSIBILITY MATTERS (OCT

2015)

K.4 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (JUL 2013)

K.5 52.209-11 REPRESENTATION BY CORPORATIONS REGARDING

DELINQUENT TAX LIABILITY OR A FELONY CONVICTION UNDER ANY

FEDERAL LAW (FEB 2016)

K.6 52.215-6 PLACE OF PERFORMANCE (OCT 1997)

K.7 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB 1999)

K.8 52.222-25 AFFIRMATIVE ACTION COMPLIANCE (APR 1984)

K.9 52.227-15 REPRESENTATION OF LIMITED RIGHTS DATA AND RESTRICTED

COMPUTER SOFTWARE (DEC 2007)

K.10 52.230-1 COST ACCOUNTING STANDARDS NOTICES AND CERTIFICATION

(OCT 2015)

K.11 52.230-7 PROPOSAL DISCLOSURE--COST ACCOUNTING PRACTICE

CHANGES (APR 2005)

K.12 INSURANCE - IMMUNITY FROM TORT LIABILITY

K.13 AUTHORIZED NEGOTIATORS

K.14 SIGNATURE

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS OR

RESPONDENTS

L.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

L.2 52.216-1 TYPE OF CONTRACT (APR 1984)

L.3 52.233-2 SERVICE OF PROTEST (SEP 2006)

L.4 GENERAL INSTRUCTIONS

L.5 DELIVERY INSTRUCTIONS

L.6 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL 111

L.7 INSTRUCTIONS FOR THE PREPARATION OF THE COST/BUSINESS

PROPOSAL

SECTION M - EVALUATION FACTORS FOR AWARD

M.1 GENERAL INFORMATION

M.2 TECHNICAL EVALUATION CRITERIA

M.3 COST/PRICE EVALUATION

M.4 DETERMINATION OF THE COMPETITIVE RANGE

M.5 SOURCE SELECTION

M.6 CONTRACTING WITH SMALL BUSINESS CONCERNS

ATTACHMENT 1 – BRANDING STRATEGY

ATTACHMENT 2 – INITIAL ENVIRONMENTAL EXAMINATION INFORMATION

ATTACHMENT 3 - IDENTIFICATION OF PRINCIPAL GEOGRAPHIC CODE

NUMBER

ATTACHMENT 4 – CONTRACTOR PAST PERFORMANCE INFORMATION

ATTACHMENT 5 – CERTIFICATION REGARDING TRAFFICKING IN PERSONS

COMPLIANCE PLAN

ATTACHMENT 6 – SF LLL - DISCLOSURE OF LOBBYING ACTIVITIES

ATTACHMENT 7 – LIST OF ACRONYMS

ATTACHMENT 8 - LOCAL COMPENSATION PLAN PAY RANGES

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

PURPOSE B.1

The purpose of this contract is to provide services described in the Statement of Work (SOW) specified in Section C to implement the USAID Green Invest Asia Activity.

CONTRACT TYPE B.2

This is a Cost-Plus-Fixed-Fee (CPFF) type term form contract. For the consideration set forth below, the Contractor shall provide the services described in Section C and the level of effort described in Section F.

ESTIMATED COST, FIXED FEE, AND OBLIGATED AMOUNT B.3

(a) The estimated cost for the performance of the work required hereunder for the Base

Contract, exclusive of fixed fee, if any, is [TBD]. The fixed fee, if any, is [TBD]. The total estimated cost plus fixed fee, if any, is [TBD].

(b) The estimated cost for the performance of the work required hereunder for Option 1 (if exercised), exclusive of fixed fee, if any, is [TBD]. The fixed fee, if any, is [TBD]. The total

(c) The estimated cost for the performance of the work required hereunder for Option 2 (if exercised), exclusive of fixed fee, if any, is [TBD]. The fixed fee, if any, is [TBD]. The total

(d) The option(s) may be exercised at any time during implementation of the Base Contract and the level of effort associated with the option(s) will be added to the level of effort associated with the base level of effort.

(e) Within the estimated cost plus fixed fee (if any) specified in paragraph (a) above, the amount currently obligated and available for reimbursement of allowable costs incurred by the

Contractor (and payment of fee, if any) for performance hereunder is [TBD]. The Contractor must not exceed the aforesaid obligated amount nor will the U.S. Government (USG) be responsible for costs incurred should the Contractor do so.

(f) Funds obligated hereunder are anticipated to be sufficient through [TBD].

PRICE SCHEDULE B.4

Description

Base

Contract

(US$)

Option 1

(US$)

Option 2

(US$)

Total Base

Plus Exercised

Options (if any)

(US$)

Total Estimated Cost

Fixed-Fee

Total Estimated Cost Plus

Fixed Fee

INDIRECT COST B.5

The contract clause entitled “Allowable Cost and Payment (JUN 2013)”, FAR Subpart 52.216-7, specifies that the indirect cost rates shall be established for each of the Contractor’s accounting periods which apply to this contract. Pending establishment of revised provisional or final indirect cost rates, allowable indirect costs shall be reimbursed on the basis of the following negotiated provisional or predetermined rates and the appropriate bases:

Description Rate Base Type Period

[TBD] [TBD] 1/ 1/ 1/

[TBD] [TBD] 2/ 2/ 2/

[TBD] [TBD] 3/ 3/ 3/

1/ Base of Application:

Type of Rate:

Period:

2/ Base of Application:

Type of Rate:

Period:

3/ Base of Application:

Type of Rate:

Period:

CEILING ON INDIRECT COST RATES B.6

Ceilings are not applicable to Small Businesses.

(a) For each of the Contractor’s accounting periods during the term of this contract, the parties agree as follows:

(1) The distribution base for establishment of final overhead rates is __________________.

(2) The distribution base for establishment of final G&A rates is _____________________.

(b) The Contractor will make no change in its established method of classifying or allocating indirect costs without the prior written approval of the contracting officer.

(c) Reimbursement for indirect costs will be at final negotiated rates, but not in excess of the following ceiling rates for each fiscal year:

Indirect Cost Type FY 17 FY 18 FY 19 FY20 FY 21 FY 22

(contractor’s FY)

1. [TBD]________ _____ _____ _____ _____ _____ _____

2. [TBD]________ _____ _____ _____ _____ _____ _____

3. [TBD]________ _____ _____ _____ _____ _____ _____

(d) The government will not be obligated to pay any additional amount on account of indirect costs above the ceiling rates established in the contract. This advance understanding will not change any monetary ceiling, cost limitation, or obligation established in the contract.

COST REIMBURSABLE B.7

Allowable costs shall be limited to reasonable, allocable and necessary costs determined in accordance with FAR 52.216-7, Allowable Cost and Payment, FAR 52.216-8, Fixed Fee, if applicable, and AIDAR 752.7003, Documentation for Payment.

PAYMENT OF FIXED FEE B.8

Payment of fixed fee, subject to FAR 52.216-8, may be made upon receipt of a proper invoice.

Subject to FAR 52.216-8, Fixed Fee shall be allocated based upon the proportion of the labor provided over the period covered by the invoice. In the event that the contractor does not provide the total Level of Effort stipulated in the Contract budget, the total amount of fixed fee shall be reduced in similar proportion. For example, if the Contractor has expended 85% of the total level of effort, then the Contractor is entitled to 85% of the fixed fee amount, provided that the performance has been satisfactory. The total amount of Fixed Fee is payable upon receipt of the

Contractor‘s statement that the level of effort specified in the contract has been expended in performing the contract work.

MULTI-YEAR CONTRACT B.9

This contract is considered non-severable, and is therefore a multi-year contract as defined in

FAR 17.103. Consequently, this contract is subject to the requirements of FAR 17.106.

This is a CPFF type term form contract where the Contractor is authorized to be reimbursed for all costs which are allowable in accordance with FAR 52.216-7, “Allowable Costs and

Payment.” The Contractor will not incur any costs which would have been amortized over the life of the contract should the contract be cancelled in accordance with FAR 52.217-2.

Therefore, the cancellation ceiling established pursuant to FAR 17.106-1(c)(1) for each program year is $0.00.

[END OF SECTION B]

SECTION C – DESCRIPTION / SPECIFICATIONS / STATEMENT OF WORK

TITLE OF ACTIVITY C.1

USAID Green Invest Asia (hereafter also referred to as the “Activity”).

PURPOSE C.2

The purpose of USAID Green Invest Asia is to support the scaling up of private investment in sustainable landscapes in Asia and contribute to efforts to reduce environmental damage of deforestation and related greenhouse gas emissions. The Activity addresses the problem of catalyzing finance into the agriculture, forestry and other land use (AFOLU) sector, in order to reduce environmental impacts of deforestation and to mitigate emissions of greenhouse gases.

The Activity will work to (a) identify investments by building a pipeline of ‘investment-worthy projects, (b) encourage investments by working with financial institutions and assist in the design and roll-out of green financing mechanisms, and (c) build a Community of Practice for

Sustainable Landscapes Finance in order to foster knowledge-sharing and learning across countries and to address systemic issues that block the development and financing of low emissions land use management businesses.

BACKGROUND C.3

Overview. Countries in developing Asia are among the most vulnerable in the world to climate change impacts, and, at the same time, are emitting an ever-increasing share of the greenhouse gases (GHG) that are driving climate change. Whereas land-based emissions account for about one quarter of global GHG emissions, the ratios in Asia are much higher. Since 1990, GHG emissions have more than doubled in Southeast Asia, nearly doubled in South Asia, and increased by about 150% in East Asia and the Pacific (ADB 2015). Today in Southeast Asia, more than half of GHG emissions come from the agriculture, forestry, and other land use

(AFOLU) sector.

The Paris Agreement, reached at the 21st Conference of the Parties on December 2015, is an important driver for work on sustainable land management. The agreement highlights the importance of climate smart agriculture (CSA) and calls for agri-business leaders to reduce emissions from the AFOLU sector by 50% while doubling the amount of food production.

Reducing land-based emissions globally could contribute 20-60% of the total cumulative carbon abatement needed during the next 15 years, and hence substantially help avert the worst impacts of climate change.

Asian countries are well aware of the regional trends in GHG emissions from the AFOLU sector and have documented their intent to reduce these emissions in the climate targets that they agreed to in the Paris Agreement. Reducing land-based emissions, however, is complex. For

Climate Smart Agriculture (CSA), an approach to addressing the interlinked challenges of food security and climate change, focuses on three objectives: sustainably increasing food security by increasing agricultural productivity and incomes; building resilience and adapting to climate change; and developing opportunities to reduce greenhouse gas emissions from agriculture

(GACSA, 2016).

example, considering Asia’s growing population, affluence, and appetite for animal protein, emission reductions must be achieved while producing more food, as well as more fiber and wood products. Therefore, collaboration with the private sector, which drives production of these commodities, is critical. Fortunately, privately-held companies with activities that affect the AFOLU sector also realize that reducing their carbon footprint makes good business sense, and many have voluntarily pledged to reduce their GHG emissions. Yet despite this, only a small fraction of investment and funding for GHG mitigation efforts in the region are in this sector--especially when compared to recent increased investment in the clean energy sector.

USAID Green Invest Asia is designed to capitalize on commitments made by both governments and the private sector in Paris to increase investments in GHG emissions reduction in the

AFOLU sector. This can be done through CSA businesses that practice low-emission land use and land management, preserving or restoring forests, reducing agricultural and related activities that drive deforestation, and encouraging agricultural practices that reduce emissions. Through

USAID Green Invest Asia, USAID seeks to partner with corporate and financial investors and other private sector stakeholders to enhance and accelerate financing for businesses, models and projects that advance low emission land use in the region.

Current challenges in developing sustainable landscapes. Countries in the region face steep challenges in curbing carbon emissions for sustainable landscapes. Deforestation has worsened over the past several decades in several countries in the region, driven mainly by large-scale conversion of forests and wetlands for agriculture. Unsustainable extraction of timber and non-timber products and conversion of natural forests to monoculture plantations have degraded remaining forests. Production of key agricultural commodities (e.g., rice, sugar, rubber, cassava and coffee) is being accomplished mainly through unsustainable, high-emissions practices.

Local, national, and international banks and other financial institutions focus on attractive rates of return and largely ignore Environmental, Social and Governance (ESG) standards. Thus, transnational flows of capital in the region are perpetuating application of carbon-intensive land management practices. The Association of Banks in Singapore said in a statement: “Irresponsible development, unsustainable business and commercial practices have adverse impacts on people and the environment. Financiers have an important role to play in shaping and expecting responsible actions from their employees and clients.” In addition to these challenges, while most countries in the region have strong environmental laws and policies, and have also committed to lowering emissions and boosting resilience in all sectors including AFOLU, weak institutions, poor governance, and other disincentives persist and create an unfavorable risk/return profile for investments into low-emissions land use management activities.

Climate change as a driver. Climate change is becoming a driver for action to improve the sustainability of land use, and to develop low-emissions models for land use management. In

December 2015, at the 21st Conference of Parties (COP) to the UN Framework Convention on

Climate Change held in Paris, 196 world leaders agreed that climate change was accelerating and recognized the importance of adequate financial resources used with positive incentives as a solution to help reduce emissions from deforestation and forest degradation (UNFCCC, 2015).

Asia has the largest mitigation potential in both the forest and agriculture sectors (Smith et al., 2014), and each of its countries has included forestry and agriculture mitigation targets within national policies. Industry in Asia, rather than communities, is the principal deforestation driver, with commercial agriculture causing 41 percent of deforestation (CIFOR, 2011). To reduce GHG and deforestation will require additional resource mobilization and collaboration among governments, the nonprofit community, and importantly the private sector.

Current market forces. Market forces and private sector investments, especially in agriculture, are still driving forest loss and degradation in Southeast Asia. It is crucial, therefore, for donors and other stakeholders to shift the staggering volume of capital flowing into land management and commodity production in Southeast Asia toward more sustainable, low-emission enterprises and practices. A new database called Forests and Finance indicates that between 2010 and 2015, Asian and western banks invested $50 billion into companies whose practices degrade or convert forests in Southeast Asia. According to research by TFA 2020, the financial sector could help

“flip the system” and both catalyze and facilitate a shift toward sustainable supply chains. The research suggests that moving toward deforestation-free production in tropical regions by 2020 will require roughly $160 billion per year in financing and investment. The research also notes that about 90% of the investment opportunities in the land sector have internal rates of return exceeding 10%.

Although opportunities for developing countries to access financing via the global reducing emissions from deforestation and forest degradation (REDD+) mechanism have continued to develop and grow, large-scale financing has been slower to materialize. Moreover, while a number of countries are likely to be accessing financing through multilateral funds (e.g., the

Forest Carbon Fund and the Green Climate Fund) for REDD+ activities, the development of a regulated carbon market that includes forest carbon offsets is less certain. At the same time there is also a growing understanding that increasing private sector investments into profitable but low-emission businesses in the AFOLU sector is also a critical need--with or without REDD+ performance-based financing. USAID/RDMA plans to catalyze private sector investments into profitable but low-emission businesses in the AFOLU sector in Asia. This approach is market-based and aims to address the drivers of deforestation, including commercial agriculture, which can help enhance competencies of ASEAN countries in achieving mitigation contributions through NDCs in the AFOLU sector, and address the Strategic Plan of ASEAN Cooperation in

Food, Agriculture and Forestry (2016-2025) on increasing resilience and contributing to mitigation and adaptation of climate change and achieving sustainable forest management

Recent thinking on private sector investments. The impact of private sector finance could be significant and much greater than the impact from public regulations alone. In addition to the

TFA 2020 research noted above, several other reports and efforts have highlighted the importance and potential of private sector investments.

● A study by Credit Suisse, WWF, and McKinsey (2014) indicated that 20 to 30 times the current level of global (mostly public) funding (approximately $10.4 billion annually) is needed to mitigate the massive adverse climate impacts of increased GHG emissions.

● A report by J.P. Morgan Chase indicated that private investment in conservation in the US and Canada grew by 26 percent annually between 2009 and 2013, from $234 million to $583 million. “Mobilizing private capital to invest in and protect critical natural assets is essential, as traditional sources of philanthropic and government funding are plainly inadequate for the http://asean.org/storage/2016/10/Strategic-Plan-of-Action-for-ASEAN-Cooperation-on-Forestry-2016-2025.pdf http://asean.org/storage/2016/10/Strategic-Plan-of-Action-for-ASEAN-Cooperation-on-Forestry-2016-2025.pdf challenge,” says Doug Petno, CEO, Commercial Banking, JPMorgan Chase, Vice Chair, Advisory Board, NatureVest.

● The Global Landscapes Forum (GLF) in Paris in December 2015, led by the Center for

International Forestry Research (CIFOR), brought together 148 organizations from across the globe to exchange ideas and experience. Their outcome statement made specific recommendations on financing for sustainable landscapes, including promotion of landscape-level investment incubators to help build technical capacity among people on the ground;

investment in brokering services for integrated landscape deals; incorporation of landscape investment principles into public finance; creation of frameworks for financing integrated landscape management within national sustainable development goals (SDGs) and green growth strategies; and development of de-risking mechanisms, and providing early financing before financial returns can be realized.

● For the first time in the history of the Conference of the Parties, global agribusiness leaders, as part of the World Business Council for Sustainable Development, committed to double their food production for a growing population while reducing agriculture’s greenhouse gas footprint by 50% by 2030.

● Studies by both Credit Suisse and Dalberg Global Development Advisors quote investors and experts who noted that conservation finance is growing, but that it will be necessary to increase the capacity of enterprises and to de-risk investments, in order to “crowd in” and encourage further investment to help achieve greater impact and scale. The Dalberg studies also note that wide-scale adoption of ESG standards by banks and other lenders could also help improve the risk/return profile of AFOLU sector enterprises and potentially increase SL investments.

STATEMENT OF WORK C.4

C.4.1 PROBLEM STATEMENT AND DEVELOPMENT CHALLENGES

Problem Statement: There is a lack of investment into sustainable and climate-friendly forestry and agricultural projects.

Although significant amounts of funding are available internationally for sustainable and climate-friendly forestry and agricultural projects (e.g., “green” funds established for dedicated investment into Sustainable Landscapes (SL) enterprises), several factors are impeding such investments. These barriers include:

1) a limited pipeline of bankable business models and projects into which the private sector can invest;

2) lack of clarity on investment returns;

3) unstable commodity prices;

3 https://www.jpmorganchase.com/corporate/Corporate-Responsibility/document/InvestingInConservation_Report_r2.pdf http://www.wbcsd.org/Projects/Climate-Smart-Agriculture/News/Agri-business-Leaders-climate-smart-at-COP21-make-50-more-food-reduce-agricultural-emissions-50-2030 https://www.jpmorganchase.com/corporate/Corporate-Responsibility/document/InvestingInConservation_Report_r2.pdf http://www.wbcsd.org/Projects/Climate-Smart-Agriculture/News/Agri-business-Leaders-climate-smart-at-COP21-make-50-more-food-reduce-agricultural-emissions-50-2030 http://www.wbcsd.org/Projects/Climate-Smart-Agriculture/News/Agri-business-Leaders-climate-smart-at-COP21-make-50-more-food-reduce-agricultural-emissions-50-2030

4) unclear land tenure and land rights;

5) lack of clear policy frameworks to support low-emission investments;

6) limited access to investment capital for small and medium enterprises working in the

Sustainable Landscapes sector;

7) unabated and unfettered investments in high-emission practices; and

8) limited engagement of local communities and populations that are dependent and/or disproportionately affected by current unsustainable land use investment.

These challenges hinder investments that could transform the AFOLU sector and shift it toward climate resilient, low carbon pathways.

This activity will address Challenges 1, 2, 6, 7 and 8. USAID/RDMA recognizes the challenges of land tenure issues, (Challenge 4) and that they can be a serious impediment to investment decisions. It is envisioned that USAID Green Invest Asia will be cognizant of the issues of land tenure, but that the activity will not significantly engage on land tenure issues.

Challenge 3 is outside of USAID’s manageable interest, and it is assumed that commodity prices will continue to be unstable. However, this is not a “killer assumption” because it is also assumed that purchase and consumption of commodities from the region will remain strong. This latter assumption is based on the region’s rapidly growing population and economies as well as on sustained interest in the region’s commodities (rice, coffee, sugar, rubber, wood products, etc.) both within and from outside the region. Support to any commodity will be based in part on a clear demonstration of the particular value-added by the regional USAID activity.

With regard to policy issues (Challenge 5), it is recognized that there may be systemic policy issues that impede investment. It is envisioned that the Activity may need to address policy issues in some cases, and will endeavor to do so through partnerships with USAID bilateral programs, or with other donors working in the region on these issues. This engagement in the policy sphere could include interaction with governments on Environmental and Social

Safeguards, as an underpinning for effective governance of the AFOLU sector in jurisdictions and landscapes where investments are being planned. As with broader policy issues, such engagement with national governments on Environmental and Social Safeguards would best be coordinated through collaboration and partnerships with the programs of USAID bilateral missions and other donors working on these issues.

By way of definition, USAID’s sustainable landscapes (SL) approach works to assist countries to slow, halt, and where possible reverse, GHG greenhouse gas emissions from land use, including forests and agricultural ecosystems.

Development Hypothesis. If we can enhance the environmental sustainability of existing land-use investments (e.g., through adoption of environmental, social, and governance standards), and expand the scale of existing investments in low-emission land use, then we will foster a more robust ‘finance ecosystem’ for sustainable landscapes investments in Asia, and thereby can greatly reduce commodity-driven deforestation and terrestrial greenhouse gas emissions in the region.

C.4.2 OVERALL VISION

The ultimate vision of the activity is that “sustainable landscapes” financing becomes business as usual as demonstrated by the following outcomes:

- Reduced greenhouse gas (GHG) emissions from improved sustainable landscapes practices.

- Reduced ratio of investments in high-emission versus low-emission practices in the agriculture, forestry, and other land use (AFOLU) sector

The purpose of USAID Green Invest Asia is to reduce greenhouse gas emissions by catalyzing private finance to scale up and drive investments in the AFOLU sector toward low-emission yet profitable business models. The aim is to shift private investment toward low-emissions land use management models--businesses that through their operations and practices slow, stop and reverse loss of forests and other landscapes. Such businesses also provide many co-benefits, including support for local livelihoods, watersheds and biodiversity, and reduced vulnerability to the impact of climate variability and change.

It is envisioned that the acceleration of investment can be achieved broadly along two tracks. In some cases, investment funds (e.g., “green funds”) have been committed to sustainable landscape investments and are seeking a robust pipeline of bankable projects; in other cases, the activity will focus on shifting investments (e.g., from large commodity producers) from unsustainable

(non-green) to sustainable land use management practices or increasing low-emission land use investment of medium-scale commodity producers.

C.4.3 OVERALL ACTIVITY INDICATORS AND ASPIRATIONAL TARGETS

The following are aspirational targets for this five-year activity. It should be noted that the area of private sector investment into the sustainable landscapes sector, and the measurement and reporting of emissions reductions, is in a very nascent stage; therefore, these figures are not presented as hard targets, but as aspirational targets to provide an approximate idea of the level of impacts that USAID envisions under the activity.

Indicator

Aspirational

Target

(2017-2022)

● Greenhouse gas (GHG) emissions, estimated in metric tons of

CO2 equivalent, reduced, sequestered, or avoided through sustainable landscapes activities supported by USG assistance:

counted from business policies and business models/innovations

(EG.13-6). Emission reduction targets must be referenced and adhere to rigorous calculation methods and tools, including, but not limited to, USAID AFOLU Carbon Calculator http:/www.afolucarbon.org.

25 million tons of

CO2 equivalent http://www.afolucarbon.org/

● Amount of investment mobilized (in USD) for sustainable landscapes as supported by USG assistance (EG.13-4) USD 400 million

● Ratio of investments in high-emission versus low-emission practices in the agriculture, forestry, and other land use

(AFOLU) sector made by financial institutions receiving assistance or support from this activity.

Decreasing over lifetime of project

C.4.4 ACTIVITY OBJECTIVES

In order to achieve the overall vision of this activity, three objectives are proposed. In order to successfully address the problem of catalyzing finance into the AFOLU sector, it is necessary to pursue these three objectives in concert through a holistic framework.

1. Objective 1 focuses on identifying investments by building a pipeline of ‘investment-worthy projects’ and providing technical assistance and mentoring to the project developers.

2. Objective 2 focuses on encouraging investments by working with financial institutions and assisting in the design and roll-out of green financing mechanisms.

3. Objective 3 supports building a community of practice in sustainable landscapes finance by fostering knowledge-sharing and learning across countries and by addressing systemic issues that block the development and financing of low emissions land use management businesses.

OBJECTIVE 1: Identify Investments

Develop a pipeline of “investment worthy” projects and businesses in land use and land management. It is envisioned that the contractor will provide technical assistance aimed at identifying investment opportunities in low-emission land management. The aim will be to develop a pipeline of investment-worthy low-emission projects and businesses that can be considered by investors, fund managers, or multinationals active in the AFOLU sector.

Interventions will focus on assisting businesses or projects that are on the verge of adopting sustainable, low-emission practices to “go over the tipping point” by providing targeted technical assistance, facilitating their access to finance, and providing other specific inputs that can create quick wins with limited resources. Such opportunities can target practices across AFOLU commodity value chains, including but limited to: 1) securing access to high-quality suppliers,

2) improving access to key export markets by supporting third party certification with emission reduction criteria, 3) enhancing productivity, facilitating reforestation for sustainable production,

4) developing deforestation-free supply chains, and 5) promoting climate smart agriculture.

The project pipeline can include small and medium companies (e.g., smallholders, women’s producers associations, agricultural businesses or cooperatives) that seek to scale up their low-emission land use management practices, as well as larger companies that seek to green their supply chain. Projects must lead to emission reductions and/or carbon sequestration as well as the deployment of private sector investment that will enable positive change for men and women involved in the AFOLU sector.

The contractor will identify and prioritize projects through consultation with USAID bilateral missions as well as their networks in the SL sector. While it is important to have strong coordination and collaboration with USAID bilateral missions and their SL programs, projects can be considered at the regional level, as well as at the country level.

To develop project pipelines over the longer term, the contractor may consider methods for addressing the lack of investment-worthy models through mechanisms such as incubators and the strengthening or creation of platforms or institutions that perform an incubator function beyond the project lifetime.

OUTCOME: The primary desired outcome of this objective is a more robust pipeline of investment-worthy green projects.

Illustrative Indicators:

- Number of sustainable landscapes projects that receive funding brokered or leveraged via assistance from USAID

- Number of hectares under improved management through these projects

OBJECTIVE 2: Encourage Investments

Increase investment by banks, financial institutions, and funds into sustainable, low-emission land use management businesses.

Through USAID Green Invest Asia, the contractor will explore innovative and effective approaches to building partnerships and alliances (in low-emission land use management) with public and private sector parties, at either the national or regional level, that are interested in adopting responsible investment practices towards deforestation and degradation-free agriculture, agroforestry, and forestry businesses. Accordingly, it is important to use innovative financing mechanisms that support early-stage initiatives as well as proven investment models in sustainable agriculture and forestry that also lead to reduced GHG emissions.

Illustrative approaches to achieve this objective include, but are not limited to, broad and long-term promotion and support toward the adoption of Environmental, Social and Governance

(ESG) guidelines by banks and financial institutions. (ESG guidelines are a set of standards for a company’s operations that responsible investors use to screen investments on the basis that companies who proactively manage ESG are better placed than their competitors to generate long-term results (UN Global Compacts, 2014). ESG indices include, but are not limited to, climate change and its potential impacts on investments, human rights and gender diversity.

Some banks and investors have already adopted strong ESG standards or similar policies and are actively seeking out investment opportunities in sustainable landscapes. Likewise some commodities producers and consumers have made international pledges to “green” their supply chains. Other banks, investors, and companies have not yet adopted ESG standards or good practice. USAID Green Invest Asia will seek to partner with the more progressive actors in order to help replicate and scale these investments and practices. At the same time, the program will also be open to working with actors that are contributing to deforestation, forest degradation, and high emissions land management, in order to help them adopt and implement ESG standards and sustainable landscapes practices.)

Other illustrative approaches include support of the use of investment accelerators for deforestation-free supply chains and green businesses in the agroforestry sector; work with fund managers to help them access a pipeline of projects; provision of technical input into the design of new funds or funding mechanisms; introduction of mechanisms to mitigate the risk for private sector investment in developing markets by providing partial credit guarantees, first loss capital or other risk mitigation products; and facilitation on the use of green bonds targeted at the

SL sector.

It is also worth noting that USAID/RDMA is also working in parallel with USAID’s

Development Credit Authority (DCA) to identify banks or projects that could access DCA’s loan guarantee products for lending and/or investments in the SL sector in the region.

In support of the investment objective of this activity, the contractor will also link investors (e.g., fund managers, direct investors, and banks) with the pipeline of “investment worthy”, low-emission businesses and projects identified in Objective 1. This matchmaking effort can be carried out using a variety of mechanisms. Some examples include:

● investor forums that bring together companies with innovative portfolios of low-emission projects or businesses to introduce them to investors;

● small workshops focusing on investment opportunities in a specific commodity area, landscape or jurisdiction; and

● physical or virtual/on-line marketplaces that can facilitate introductions between investors and businesses seeking investment.

OUTCOME: The primary desired outcome of this objective is increased green investment in the AFOLU sector.

- Number of “green” loans/investments for low-emissions land use management businesses in the AFOLU sector

- Number of institutions (private sector firms) with improved capacity to address sustainable landscapes issues as supported by USG assistance

OBJECTIVE 3: Build a Community of Practice in Sustainable Landscapes Finance

Go beyond the transactional level to address systemic issues blocking the development and financing of low-emissions land use management businesses while building a community of practice across the region.

Under this objective, the contractor will work with the full range of key stakeholders in the financial, forestry, and agriculture sectors to build awareness of the benefits of low-carbon land use management; to raise awareness of the importance of shifting investment to low-emissions land use management; and to identify and solve systemic issues that are blocking such a shift. A major focus of the activity should be on promoting the sharing of knowledge and lessons learned across countries and landscapes, and developing or strengthening effective platforms for building a community of practice dedicated to identifying and financing business models that support low-emissions land use management.

Communities of practice are groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their understanding and knowledge of this area by interacting on an ongoing basis. It is envisioned that the sustainable landscapes finance community of practice can play a significant role in amplifying initiatives of the USAID Green

Invest Asia activity, including approaches such as Environmental, Social, and Governance standards and guidelines (see Objective 2 above).

Counterparts will include the business community, investors and communities where projects are sited, host governments at the national and subnational level that have SL policies and targets, and USAID bilateral missions working on sustainable landscapes and agriculture programs. The donor community will be a key part of the Community of Practice as well, since numerous bilateral and multilateral donors active in the AFOLU sector are providing support on sustainable landscapes activities and also support financing for the sector. USAID has been coordinating with many of these donors through the AFOLU Working Group of the Asia LEDS partnership

(ALP), and in other venues.

OUTCOMES: The primary desired outcomes of this objective are:

- A robust and inclusive community of practice that sustains the momentum for investment in the AFOLU businesses across the region (i.e., comprised of project developers, entrepreneurs, investors, government officials, and community members affected by SL businesses)

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