USAID Udhyam Nepal Attachments 1-6.pdf

Attachment J.1

STATEMENT OF OBJECTIVES (SOO)

USAID UDHYAM NEPAL ACTIVITY

[Selected Contractor’s Performance Work Statement will replace Statement of Objectives at the time of award execution, and will include relevant paragraphs of Section C below]

1. PURPOSE

The purpose of this activity is to enable the Nepali private sector to become competitive globally by strengthening key agriculture and non-agriculture sectors with high potential for growth and employment creation while recovering from the impact of COVID-19. This SOO allows Offerors to propose and price a set of interventions that achieve the outlined objectives and contribute to measurable improvements in the functioning of market systems, business operations, and/or production capabilities; promote investment and increased use of improved technologies and innovations as well as financial and non-financial services to spur productivity; strengthen marketing capacities; and streamline select import and export procedures. While the interventions supported must be focused and well-tailored to firms in the targeted sectors, some interventions will yield broad-based and positive system-wide impacts for Nepali firms as a whole. The Contractor must flexibly adapt interventions and seize opportunistic actions at a firm level that increase jobs and exports, increase competitiveness in the targeted agriculture and non-agriculture sectors, and can offset losses related to COVID-19, other threats posed by pandemics or disease outbreaks, natural disasters, or political and economic instability.

2. SCOPE

This Statement of Objectives (SOO) describes the objectives of USAID/Nepal for an activity that will enhance capacities and competitiveness of Nepali enterprises including small, and medium-sized enterprises (SMEs) associated with targeted value chains (e.g., agro-processing, digital services, or tourism). At the same time, it will promote the integration of women, youth, and marginalized groups into markets to participate in economic opportunities that are created as the economy grows, which include addressing the barriers they face as articulated in Section 5. As recognized in the Agency’s new Economic Growth Policy, that poor management of the environment and natural resources hinders sustainable economic growth, the activity will include a significant focus on assessing and addressing climate-related threats to sustainable growth within relevant sectors. This SOO does not state how the work is to be accomplished but provides potential Offerors with the flexibility to develop market-based solutions and the opportunity to propose innovative approaches to meet the stated objectives and results.

Based on this SOO, Offerors will submit a Performance Work Statement (PWS) which describes a market-driven approach that tailors strategic interventions to the needs of the Nepali private sector to achieve the objectives of the activity and the intended economic impact of proposed interventions. The PWS must enable USAID to assess the performance of the work against specific, clear, and measurable performance standards in terms of quality, quantity, and timeliness, and provide a sufficient basis for assessing contractor performance against the performance standards.

3. BACKGROUND

Nepal is a country that faces many challenges to growing its economy. The options for a landlocked, geographically challenged economy are considerably more limited than those of a country that has easy access to global markets.

Social rigidities, a fragile environmental ecosystem, and high vulnerability to disasters induced by demographic shifts and climatic effects all contribute to the re-occurrence of economic shocks that impact competitiveness and cause poverty backsliding. In a span of five years, Nepal’s economy suffered through two major crises - two devastating earthquakes in 2015 and the current COVID-19 pandemic. The COVID-19 outbreak brought the economy to a standstill during the lockdown and severely disrupted supply chains, setting the country back one year without any growth in GDP, at the minimum, while the upper range of the impact remains uncertain as the outbreak continues to evolve.

During the last decade, Nepal’s economy grew at an average rate of only 4.2%, which is lower than the average growth rate of its neighbors by two percentage points (Figure 2.1). However, in Nepal these challenges are exacerbated by a poor investment climate, risky and costly business environment, and limited market opportunities that constrain private investment, both foreign and domestic, and impede the country’s sustained growth. Costs of production are high in Nepal, even though labor is cheap, and transport costs are prohibitive even in the southern Terai, where geographical barriers are not as daunting. The country’s manufacturing sector contributes only 5% and agriculture 25% to Nepal’s GDP.

Figure 2.1 Nepal Economic Performance FY 2008-2018

Source:Nepal Rastra Bank

While migration has been a key factor in reducing poverty in Nepal, with remittances equivalent to 25% of GDP ($7.8 billion in FY18/19), it has eroded the domestic economy’s competitiveness, largely in the agriculture sector as most of the migrants come from rural areas dependent on agriculture and heightened macroeconomic vulnerabilities.

According to the 2020 World Bank’s Ease of Doing Business Survey, Nepali enterprises do not fare well in terms of starting and operating a business. Out of 190 countries in the survey, Nepali enterprises rank 94th overall but faced difficulties in starting a business (135th), enforcing contracts (151st), getting electricity (135th), and paying taxes (175th.) Such challenges in doing business have placed enterprises at a disadvantageous starting position relative to competitors in other countries. Entrenched patronage systems, procurement practices and systems of commerce beneficial only to a small group of elites remain pervasive. Both agricultural and non-agricultural enterprises in Nepal are constrained by numerous barriers, including:

● lack of access to low-cost and high-quality inputs,

● inefficient inbound and outbound logistics,

● poor access and adoption of improved technologies at SMEs level,

● an inadequately skilled workforce,

● poor governance pertaining to operating a business,

● lack of access to finance,

● lack of access to markets and market intelligence,

● poor enabling environment for imports and exports,

● poor adherence to sanitary and phytosanitary standards, and

● lack of business services to SMEs.

The COVID-19 pandemic is expected to have a severe short-term impact on Nepal’s economy. The Nepal Rastra Bank (NRB) reported that the Nepali economy grew by 2.3% in 2020, down from 6.3% forecasted in September 2019. According to the World Bank’s best-case scenario, Nepal’s economy may not return to pre-COVID growth rates until early 2023. The GON incurred a fiscal deficit in 2020 that is equivalent to 7% of GDP, an increase from 5% the previous year. The GON’s COVID-19 relief efforts partly explain the 2.7% increase in expenditure, and the lower growth of the economy reduced revenue collection and grants by 13.1%, which combined to widen the fiscal deficit.

Widespread supply chain disruptions caused interruptions in market supply of goods and services and pushed inflation to increase to 6.2% in 2020, from 4.6% the previous year. Most economic sectors and support services will be affected.

Nearly one million Nepali migrants have returned to Nepal, without domestic employment prospects, reducing the purchasing power and incomes of the 56% of Nepali households who depend on remittances. While some Nepali migrants remain abroad, they also face economic hardships specific to their host countries. Their limited ability to provide remittances is expected to have an outsized impact on Nepal’s domestic consumption, savings, investment, and liquidity. The NRB reported that workers’ remittances declined by only 3.3% in 2020. Merchandise exports declined by 7.3% due to weak external demand and disrupted domestic production, while exports in services declined by 18%. Domestic supply chains will also likely see a hit as demand for imports falls. The impact of the COVID-19 pandemic will exacerbate the longstanding constraints that Nepali enterprises have faced for decades, will further erode their competitiveness, and will exacerbate unemployment.

4. STRATEGIC APPROACH

To best support the goals of the U.S. Mission to Nepal’s Integrated Country Strategy and USAID/Nepal CDCS for the years 2021 to 2025, the overall goal of this activity is: “Nepali private sector’s competitiveness in targeted domestic and global value chains increased.”

The COVID-19 pandemic will delay Nepal’s ability to address longstanding constraints to investment and growth.

Thus, the USAID Udhyam Nepal activity will adopt a phased approach that will first focus on recovery-related interventions by addressing the more immediate and existential challenges faced by enterprises, such as surviving the liquidity crunch. Economic relief efforts will need to be sustained as a lifeline until the outbreak can be effectively managed, enabling businesses to fully resume operations. As the COVID crisis eases, the activity will then transition more fully to its overall objective of fostering increased competitiveness within a context of equitable growth. It will sequence efforts to restore the viability and profitability of enterprises that survive the crisis by rebuilding or re-focusing disrupted supply chains and adapting operations to the realities and opportunities present within a new business environment. Throughout implementation, the activity will look for opportunities to partner with public and private institutions to engage in policy reforms that reduce the constraints to investment and productivity and enhance the competitiveness of targeted enterprises in the world market.

The Activity will adopt a co-design approach, engaging closely with the successful Offeror to explore and identify innovative and effective approaches and interventions that catalyze new partnerships and unlock new investment and trade opportunities in the targeted sectors. A Grants Under Contract (GUC) component may be proposed to fund such innovative partnerships with Nepali and/or international private sector entities to advance the USAID Udhyam Nepal goal.

Theory of Change

The proposed theory of change for the Activity is: If, Nepali firms are enabled to kick-start productivity and off-set losses; if the costs of production and trade for Nepali firms in sectors (agriculture and non-agriculture) with high growth and employment potential can be reduced; and if business innovation and productivity is increased through targeted streamlining of business processes; and if Nepali firms gain improved access to supportive market-based services, then, the private sector’s competitive participation in targeted domestic and global value chains will increase.

5. PERFORMANCE OBJECTIVES

Consistent with the USAID model of economic growth emerging through the new Economic Growth Policy, the proposed goal places enterprises squarely at the center of the proposed design. Successful achievement of the Activity goal will be demonstrated most fundamentally through clear, commonly accepted measures of enterprise competitiveness at the firm and sector levels. In line with the overall Results Framework for the USG’s Udhyam Nepal Initiative, the key outcome indicator at the goal level is EG 5.1, “USD sales of firms receiving USG funded assistance.” Offerors should prepare a Performance Work Statement (PWS) that demonstrates the most efficient combination of interventions that mutually reinforce each of the following objectives:

Objective One: Access to market-based financial and non-financial services improved

Objective Two: Productivity in sectors with high growth and employment potential increased

Objective Three: Improved investment climate and business enabling environment, especially for targeted sectors

OPTIONAL CLIN: Objective Four: Private sector led economic recovery supported

Objective One: Access to market-based financial and non-financial services improved

Poor access to financial and non-financial services is a major constraint to enterprise creation, growth, and competitiveness. To address this, the Activity will support market-based solutions that expand enterprises’ access to targeted financial services and new investments (foreign and domestic), and to non-financial services such as business development services, which may include product development, production practices, supply chain management, market intelligence, marketing, business-to-business linkages, and firm level governance. Offerors must demonstrate in their PWS how they will improve access to quality, market-based services that will enhance enterprise competitiveness.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based on their proposed approach:

https://www.usaid.gov/sites/default/files/documents/1870/EG_Policy_Consultation_12.27.2019.pdf o Illustrative Indicator: EG 2-12 Number of private sector enterprises with increased access to finance due to USG assistance o Illustrative Indicator: EG.5.2-1 Number of firms receiving USG-funded technical assistance for improving business performance o Illustrative Indicator: Value (in USD) of new investments mobilized as a result of USG assistance o Illustrative Indicator: GNDR-2 Percentage of female participants in USG-assisted programs designed to increase access to productive economic resources (assets, credit, income or employment)

Objective Two: Productivity in sectors with high growth and employment potential increased

To be competitive in the interconnected global economy, Nepali firms and their employees require enhanced access to affordable productivity-enhancing technologies, support to guide their product development and diversification, and the necessary human capital skills to capitalize on market opportunities. Offerors must provide demonstrably viable and carefully targeted approaches to increasing productivity within targeted sectors. An important element of achieving this objective in a sustainable manner is assessing and addressing climate-related threats to growth and other environmental stresses, including through connecting relevant firms and other institutions to regional or global sources of adaptation and green growth financing.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based o Illustrative Indicator: EG 5-12 Number of small, and medium-sized enterprises supported by USG assistance o Illustrative Indicator: EG.5-1 USD sales of firms receiving USG-funded assistance o Illustrative Indicator: EG 5.2-2 Number of private sector firms that have improved management practices or technologies as a result of USG assistance o Illustrative Indicator: EG 2.2-1 Number of firms receiving USG-funded technical assistance to export o Illustrative Indicator: EG 2.2-2 Number of firms receiving USG assistance that have obtained certification with (an) international quality control institution(s) in meeting minimum product standards

Objective Three: Improved investment climate and business enabling environment for targeted sectors

At every stage in its life cycle, from starting a business, to operating one, and until the point of liquidation, Nepali enterprises are burdened by cumbersome business and property registration requirements. They also struggle to understand the requirements around sanitary and phytosanitary standards. Offerors must propose highly targeted approaches to improving the investment climate, including through strengthened private sector advocacy and enhanced private/public dialogue. Effective climate risk analysis and management and fostering linkages to sources of climate financing may present promising avenues for improving the overall investment climate and unlocking new sources of investment.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based o Illustrative Indicator: Number of barriers to trade and investment reduced as a result of USG assistance o Illustrative Indicator: EG 5.1-19 Value (in USD) of investment associated with USG assistance to improve the business enabling environment o Illustrative Indicator: EG2.1-2 Average time (in hours) to trade goods along trade corridor receiving USG assistance o Illustrative Indicator: EG 5.1-20 Percentage of beneficiary firms that formalize, in association with USG assistance to improve the business enabling environment

Optional Contract Line Item (CLIN): Objective Four:

The USAID Udhyam Nepal Activity contains an up to $4 million optional CLIN for additional programmatic interventions as part of this planned contract. The optional CLIN is an opportunity to scale-up programmatic interventions and support private sector led economic recovery. Nepal remains among the most vulnerable countries in the world to natural disasters and climate change. It is still completing reconstruction following the devastating 2015 earthquakes and is in the midst of the ongoing COVID-19 crisis. This CLIN serves to protect and advance Nepal’s economic development and Udhyam Nepal gains when future unanticipated events affect the country or specific geographies. This may include, for example, providing support to private enterprises in areas affected by natural disasters, climate change, disease outbreaks and pandemics (including new issues that arise related to the COVID-19 pandemic), political instability, and economic disruptions, in order to kick-start and sustain local economic recovery. This may also include mobilizing the private sector and forging new partnerships and financing to bolster economic recovery efforts.

The Contractor should consider the following minimum indicators and propose additional indicators, if needed based on their proposed approach:

o Illustrative Indicator: EG.2-12 Number of private sector enterprises with increased access to finance due to USG assistance [In the context of a specific disaster, disruption, or other stress] o Illustrative Indicator: EG.3.2-26: Value of annual sales of producers and firms receiving USG assistance [In the context of a specific disaster, disruption, or other stress] o Illustrative Indicator: Number of enterprises with increased resilience (i.e., ability to adapt to a changing environment and decrease their vulnerability to future anticipated and unanticipated events) as a result of USG assistance

6. RESULTS AND INDICATORS

The Contractor must measure and track indicators for each objective. The Contractor must track and report on standard indicators in the Standard Foreign Assistance economic growth indicator reference sheets and the Feed the Future Indicator Handbook. In addition, the Contractor is required to include at least one standardized "F" indicator from the Bureau for Foreign Assistance F. The Contractor may develop custom indicators and review indicators included in reports of previous USAID agricultural activities found on the Development Experience Clearinghouse.

The Contractor must ground truth and update the final baseline indicators and targets in consultation with USAID and must indicate proposed baselines and targets, where available or appropriate. In addition, the Contractor is required to include standardized indicators from Feed the Future, the U.S. Government’s global hunger and food security initiative (GFSS).

7. GRANTS TO U.S. AND NON-U.S. NGOS

The Contractor is authorized to use a Grants Under Contract (GUCs) component to issue grants to governmental and non-governmental partners (including non-profit and for-profit entities) to support approaches under relevant objectives of the activity. Specifically, GUCs may be used to help develop the capacity of GON institutions, academic institutions, private sector organizations, civil society organization, and other private enterprise organizations and associations dedicated to trade and investment and crucial in achieving USAID Udhyam Nepal goals and objectives.

8. OPERATING PARAMETERS

Gender and Social Inclusion

Participation of women, youth, and marginalized communities is critical for broad-based and sustainable economic growth. The Activity will adopt an inclusive strategy that will address barriers faced by women, youth, and disadvantaged communities in trade, business, access to resources (finance, technology, business services, markets), and market intelligence and information, which impede their ability to be competitive and expand their businesses.

The Activity will strive to foster inclusive and gender-sensitive and gender-responsive policies and interventions.

Targeted approaches will be used to reach businesses owned, managed and controlled by women, youth, and members of marginalized groups. It will also strengthen the channels by which the benefits of growth are transmitted to women and members of disadvantaged groups, while improving the productivity and competitiveness in products and services. In this pursuit, the Activity will give due consideration to both the gender-specific or gender-intensified constraints that women and other members of disadvantaged groups experience in relation to trading opportunities. In-depth analysis will be carried out upon selection of sectors to identify specific constraints as well as to design the policy reforms and the interventions that address them. A detailed GESI Analysis and Action Plan will be developed after award to inform implementation of the Activity.

Complementary USG and Donor Activities

USAID/Nepal’s two Feed the Future (FTF) flagships activities, Knowledge-Based Integrated Sustainable Agriculture in Nepal (KISAN) II and Nepal Seed and Fertilizer (NSAF), take a market systems approach, which facilitates private sector-led development of the targeted value chain commodities and an improved enabling environment. NSAF focuses on strengthening the competitiveness of the seed and fertilizer value chains through improved technologies, market systems, and policy. These FTF activities and this Activity are mutually reinforcing in building the competitiveness of agricultural products. Their close coordination will help to amplify the results achieved by each activity and ensure a greater impact as a whole. This Activity should also seek to collaborate as appropriate with USAID’s other FTF activities operating in Nepal, including any new FTF and related activities awarded over the period of performance. The Activity should also seek to collaborate with centrally funded FTF activities, including the Innovation Labs and Business Drivers for Food Safety, where relevant.

The goal of USAID/Nepal’s Urja Nepal Activity is to create a financially viable electricity sector that provides affordable, reliable and secure power and enables the entry of private investment into the Nepali market. Urja Nepal has four interrelated objectives: 1) Utility performance and relevant sector policies improved; 2): Advanced energy systems deployed; 3): Increased private sector engagement; and 4) Cross border electricity trade between Nepal and its neighbors advanced. Urja Nepal’s substantial private sector engagement elements are highly relevant to the proposed Activity, making strong coordination essential. The fact that energy is potentially a very important export for Nepal, and electric vehicles an important means of reducing Nepal’s trade imbalance given the significance of petroleum to its overall import basket, underscore the importance of strong collaboration.

U.S. Government inter-agency coordination and collaboration is critical for effective implementation of this Activity.

The Activity will contribute to the U.S. Embassy to Nepal’s Integrated Country Strategy (ICS) goal of promoting economic growth and prosperity.

The U.S. Support for Economic Growth in Asia (US-SEGA) project aims to improve the policy environment for sustainable economic growth and prosperity, regional economic cooperation, and the sound management of institutions and good governance throughout the Asia-Pacific Economic Cooperation (APEC) and Indo-Pacific regions, while also expanding markets for U.S. goods and services. As US-SEGA works with USAID economic growth programs in the Indo-Pacific, this Activity will collaborate with US-SEGA to achieve results on the common areas of interest, such as in trade facilitation and the enabling environment.

DFID, EU and the World Bank are in the process of launching highly complementary activities: Nepal in Business, Trade and Investment Programme; and Nepal Sustainable Tourism Value Creation Project. We anticipate that these activities will add significant value to this Activity and will amplify its results.

The prospective contractor should seek opportunities to effectively engage with other complementary USAID activities, including those funded by the Mission, regionally, and Washington, and should engage with other development donors including, but not limited to, the World Bank, EU, and DFID.

Sustainability

Sustainability and scalability are central to the objectives and design of the activity. The Offeror must identify the elements of sustainability and scalability considered essential to achieve the activity purpose and describe how sustainability objectives will be integrated and how benefits and results will continue and be scaled up beyond USAID funding. The Offeror must identify key sustainability issues and considerations around a host of issues, as necessary, including economic, financial, social soundness, institutional capacity, political economy, technical/sectoral, and environmental (including climate change vulnerability). The Offeror’s Performance Work Statement must propose interventions on these issues that will be considered to more sustainable outcomes for the activity as a whole and for specific agency engagements.

Environmental Guidelines and Climate Risk Management

The Offeror will perform the work in accordance with the approved programmatic Initial Environmental Examination (IEE) and its subsequent amendment(s), USAID’s environmental regulations at 22 CFR 216, and in accordance with application of local environmental laws and regulations. USAID Udhyam Nepal activities will largely entail technical assistance and capacity building initiatives and is not expected to be directly carrying out construction activities. As such, the initial environmental assessment may recommend a Categorical Exclusion threshold decision. Activities under the Categorical Exclusion do not require an Environmental Assessment because the actions do not impact the natural or physical environment. However, some activities may be recommended for Negative Determination with Conditions to capture the nature of some tasks that may have a potential harmful environmental impact. All activities recommended for a Negative Determination with Conditions are subjected to further environmental review for approval by the project’s COR and the MEO using the Environmental Screening Report (ESR) prior to implementation.

ADS 201 puts in place the new Climate Risk Management guidance for USAID activities. This requires the Offeror to develop climate risk management measures to ensure that the USAID Udhyam Nepal Activity is more climate resilient and avoids maladaptation.

Adaptive Management

It is critical that the Contractor use adaptable systems and work plans in case of unanticipated changes, and an approach that allows for flexibility as new priorities arise during the course of this contract.

The Contractor must include co-creation in developing approaches to address the objectives of this contact. The COVID-19 pandemic led to the establishment of COVID 19 prevention and safety protocols. These include social distancing and lockdowns that have led to a non-traditional operating environment. The Contractor response must reflect operating in this new environment and include measures to address and mitigate expected challenges.

[END OF ATTACHMENT: J.1]

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DISCLOSURE OF LOBBYING ACTIVITIES

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Attachment J.2

INSTRUCTIONS FOR COMPLETION OF SF-LLL, DISCLOSURE OF LOBBYING ACTIVITIES

This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal recipient, at the initiation or receipt of a covered Federal action, or a material change to a previous filing, pursuant to title 31 U.S.C. section 1352. The filing of a form is required for each payment or agreement to make payment to any lobbying entity for influencing or attempting to influence an officer or employeeof any agency, a Member of Congress, an officer or employeeof Congress, or an employeeof a Member of Congress in connectionwith a coveredFederalaction. Completeall items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional information.

1. Identify the type of covered Federal action for which lobbying activity is and/or has been secured to influence the outcome of a covered Federal action.

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Attachment J.3

PART I: Contractor Information (to be completed by Prime)

1. Name of Prime Offeror (& Sub-Offeror, if applicable):

2. Name of Contracting Entity/Government Agency:

3. Contract Number (and if applicable Task Order Number):

4. Contract Type:

5. Total Estimated Contract Value (TEC):

6. Total Obligated Value:

7. Extraordinary Problems (if extraordinary problems were encountered on this contract, explain corrective action taken, per FAR 15.305(a)(2)):

8. Contacts (please include Name, Telephone Number and E-mail address):

8a. Contracting Officer:

8b. Technical Officer/Contracting Officer’s Representative (COR):

9. Title of Award:

10. Scope of Work or Complexity/Diversity of Tasks:

11. Primary Location(s) of Work:

12. Is this Award listed in the Contractor Performance Assessment Reporting System (CPARS) - (please circle your response): YES NO UNKNOWN

PART II: Performance Assessment (to be completed by Agency, if record is not found in CPARS)

1. Quality: Assess technical activity critical to successful contract/order performance. Identify any additional evaluation aspects that are unique to the contract/order or that cannot be captured in another sub-element. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Comment:

2. Schedule: Assess the timeliness of the contractor against the completion of the contract, task orders, milestones, delivery schedules, and administrative requirements (e.g., efforts that contribute to or affect the schedule variance).

Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

3. Cost Control: Assess the contractor’s effectiveness in forecasting, managing, and controlling contract/order cost. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

4. Management: Assess the integration and coordination of all activity needed to execute the contract/order, specifically the timeliness, completeness and quality of problem identification, corrective action plans, proposal submittals, the contractor’s history of reasonable and cooperative behavior (to include timely identification of issues in controversy), customer satisfaction, timely award and management of subcontracts. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

5. Small Business Subcontracting: For Prime Offerors who are not small business concerns, assess whether the Contractor provided maximum practicable opportunity for Small Business, Small Disadvantaged Businesses, Women Owned Small Businesses, HUBZone, Veteran Owned, Service-Disabled Veteran Owned Small Business, and ANCs and Indian Tribes to participate in contract or order performance consistent with efficient performance of the contract or order. Assess compliance with all terms and conditions in the contract or order relating to Small Business participation. Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

5. Regulatory Compliance: Assess compliance with all terms and conditions in the contract/order relating to applicable regulations and codes, using the Evaluation Ratings Definitions in FAR Part 42.1503(h)(4) Table 42-1.

Circle Rating:

Exceptional Very Good Satisfactory Marginal Unsatisfactory

6. Other: Specify additional evaluation areas that are unique to the contract/order, or that cannot be captured elsewhere in the evaluation.

7. Recommendation: Given what I know today about the contractor’s ability to perform in accordance with this contract or order’s most significant requirements, I WOULD or WOULD NOT (please circle your response) recommend them for similar requirements in the future.

[END OF ATTACHMENT: J.3]

Attachment J.4

Local Compensation Plan Range, Effective September 27, 2020

Annual Basic Salary Rate

FSN Level Illustrative Categories Low (NPR) High (NPR)

(1-3) Entry Level Clerical and Manual/Trade Positions 430,392 829,527

(4-6) Upper-Level Clerical, Supervisory Manual/Trade Positions 654,914 1,272,781

(7-9) Technical and Administrative Management 1,171,757 2,885,088

(10) Junior Level Professionals/Specialists 2,501,595 3,752,395

(11) Mid-Level Professionals/Specialists 3,075,803 4,613,707

(12) Upper-Level Professionals/Specialists 4,041,038 6,061,566

Total Compensation: Annual Basic Salary Rate plus Allowances and Benefits1

FSN Level Illustrative Categories Low (NPR) High (NPR)

(1-3) Entry Level Clerical and Manual/Trade Positions 706,472 1,252,668

(4-6) Upper-Level Clerical, Supervisory Manual/Trade Positions 1,013,719 1,859,239

(7-9) Technical and Administrative Management 1,720,993 4,065,601

(10) Junior Level Professionals/Specialists 3,540,810 5,252,467

(11) Mid-Level Professionals/Specialists 4,326,585 6,431,129

(12) Upper-Level Professionals/Specialists 5,647,461 8,412,452

[END OF ATTACHMENT: J.4]

1 The total compensation package includes the following monetized and non-monetized benefits: Miscellaneous Benefit Allowance, Child Allowance, Dasain Bonus, Welfare Bonus, Retirement Contribution, Medical Insurance and Life and Accidental Insurance

Attachment J.5

INITIAL ENVIRONMENTAL EXAMINATION (IEE)

PROGRAM/ACTIVITY DATA:

Project/Activity Name: Udhyam Nepal

Geographic Location(s) (Country/Region): Nepal

Amendment (Yes/No), if Yes indicate # (1, 2...): No

Implementation Start/End Date (FY or M/D/Y):

Start Date: August 2021

End Date: August 2026

If Amended, specify New End Date:

Solicitation/Contract/Award Number(s): Solicitation No: TBD

Award No: TBD

Implementing Partner(s): TBD

Bureau Tracking ID: TBD

Tracking ID of Related RCE/IEE (if any): Asia COVID 19 Programmatic Initial Environmental Examination (PIEE) Asia 20 – 042

Tracking ID of Other, Related Analyses:

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Nepal

Other Affected Operating Unit(s):

Lead BEO Bureau: Asia Bureau

Funding Account(s) (if available):

Original Funding Amount: $19 Million

If Amended, specify funding amount:

If Amended, specify new funding total:

Prepared by: Lynn Schneider

Date Prepared: 03/03/2021

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: Environmental Examination [ X ] Deferral [ X ]

Environmental Determination

Deferred as per 22 CFR 216.3 (a) (7)

Expiration Date of Deferral Date of award

Additional Analysis/Reporting Required

Climate Risk Identified (#)

Climate Risk Addressed (#)

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

Activity Overview

The purpose of the Udhyam Nepal Activity is to enable the Nepali private sector to become competitive globally by strengthening key agriculture and non-agriculture sectors with high potential for growth and employment creation while recovering from the impact of COVID-19.

The Activity will be carried out in Kathmandu and various other areas of Nepal. The geographical areas will be determined once the selection of agricultural and non-agricultural commodities (viable sub-sectors) is done.

Environmental Determination

As per 22 CFR 216.3(a)(7), the Udhyam Nepal Environmental Determination is deferred until a time when the Mission has further information on the scope, scale, and target of the activities. In order to rectify the deferral:

● The activity analysis for environmental determination must be conducted based on the proposal submitted by the apparently successful offeror. The Mission Activity Manager and MEO shall coordinate with the REO and ASIA BEO on this process.

● The IEE must be approved before the obligation and award are made.

CLIMATE RISK MANAGEMENT

USAID supports strengthening development outcomes by integrating climate change into Agency programming, learning, policy dialogues and operations. The Automated Directives System (ADS) 201 requires climate risk assessment and management for all new projects and activities across sectors to ensure the effectiveness and sustainability of project and activity objectives in the face of extreme weather and climate events.

CLIMATE RISKS AND VULNERABILITIES

Significant warming has occurred in Nepal, with an average annual increase of approximately 0.06 degree Celsius2. The mean of temperature changes is expected to be an increase of approximately 1.4 degrees Celsius by the 2030s, with extremely hot days to increase by 55 percent by mid-century, going up to 70 percent by the

2 Shrestha, A.B. and Aryal, R., 2011. Climate change in Nepal and its impact on Himalayan glaciers. Regional Environmental Change, 11(1), pp.65- 77.

end of the century3. Current and future predicted changes in the pattern of monsoon rains will further exacerbate these challenges and disasters in Nepal4. Coupled with the increasing variability in rainfall, with a potential 50 percent increase in extreme rainfall events, flash flooding also becomes an increasing concern5. Moreover, there is a high amount of variability in rainfall over even relatively short distances6 and monitoring is hampered by scarce historical climate data and limited numbers of monitoring stations. The effects of these rainfall patterns and temperature changes vary with the large degree of elevation differential in Nepal7. Evidence suggests that the complex topography associated with nearly all of Nepal’s area would have increasing effects from climate change versus areas with less relief and complex geometries16.

Multiple sectors face challenges from the effects of climate change in Nepal, with some of those sectors directly affecting the security, health, livelihoods, and economic resilience of communities. Frequent erosion, landslides, and flash flooding from stronger rainfall events continue to damage infrastructure in Nepal, and increasing intensity and variability of these events are expected to cause greater loss and damage of infrastructure8. Sudden flooding events can also come from melting glaciers and resultant Glacial Lake Outburst Floods (GLOF), as glaciers continue to retreat in the Himalayas9. Biodiversity and ecosystems also face considerable risk from climate change, with drought affecting wetlands in the Terai and changes to the small and specific environments of the high alpine10. Agriculture faces numerous threats from changing climate, from loss of effective soil and area for farming to the loss of particular species of plants and livestock from certain areas due to changes in temperature or rainfall patterns11. Effects on livestock can come from changes in the prevalence of certain diseases, and the increase in vector borne diseases from changing temperatures12, which can also affect human health. Climate threats include direct impacts on human health from heat waves and increasing temperature, and threat of injury or death from flash floods and collapsing infrastructure13. The loss of glaciers and changing

3 Poudel, A., Cuo, L., Ding, J. and Gyawali, A.R., 2020. Spatio‐temporal variability of the annual and monthly extreme temperature indices in Nepal.

International Journal of Climatology.

4 Karki, R., Schickhoff, U., Scholten, T. and Böhner, J., 2017. Rising precipitation extremes across Nepal. Climate, 5(1), p.4.

5 Bhandari, J., 2018. WRF high resolution simulation of an extreme rainfall event over Nepal: a case study of August 11-12, 2017 event. AGUFM, 2018, pp.A21K-2865.

6 Dhaubanjar, S., Prasad Pandey, V. and Bharati, L., 2020. Climate futures for Western Nepal based on regional climate models in the CORDEX‐SA.

International Journal of Climatology, 40(4), pp.2201-2225.

7 Xu, J., Grumbine, R.E., Shrestha, A., Eriksson, M., Yang, X., Wang, Y.U.N. and Wilkes, A., 2009. The melting Himalayas: cascading effects of climate change on water, biodiversity, and livelihoods. Conservation Biology, 23(3), pp.520-530.

8 Das, P.J. and Bhuyan, H.K., 2013. Policy and institutions in adaptation to climate change: case study on flood mitigation infrastructure in India and Nepal. ICIMOD Working Paper, (2013/4).

9 Bajracharya, S.R., Mool, P.K. and Shrestha, B.R., 2007. Impact of climate change on Himalayan glaciers and glacial lakes: case studies on GLOF and associated hazards in Nepal and Bhutan. International Centre for Integrated Mountain Development (ICIMOD).

10 Bhattacharjee, A., Anadón, J.D., Lohman, D.J., Doleck, T., Lakhankar, T., Shrestha, B.B., Thapa, P., Devkota, D., Tiwari, S., Jha, A. and Siwakoti, M., 2017. The impact of climate change on biodiversity in Nepal: Current knowledge, lacunae, and opportunities. Climate, 5(4), p.80.

11 Chalise, S., Naranpanawa, A., Bandara, J.S. and Sarker, T., 2017. A general equilibrium assessment of climate change–induced loss of agricultural productivity in Nepal. Economic Modelling, 62, pp.43-50.

12 Panthi, J., Aryal, S., Dahal, P., Bhandari, P., Krakauer, N.Y. and Pandey, V.P., 2016. Livelihood vulnerability approach to assessing climate change impacts on mixed agro-livestock smallholders around the Gandaki River Basin in Nepal. Regional Environmental Change, 16(4), pp.1121- 1132.

13 Dhimal, M., Dhimal, M.L., Pote-Shrestha, R.R., Groneberg, D.A. and Kuch, U., 2017. Health-sector responses to address the impacts of climate change in Nepal. WHO South-East Asia Journal of Public Health, 6(2), p.9.

rainfall patterns will also directly affect water resources availability in Nepal, with effects directly on hydrology, hydropower, drinking water, irrigation, and sanitation14.

CLIMATE RISK SCREENING

Based on the 2017 Nepal Climate Risk Profile and the climate risk screening process detailed in the Mission’s approved CDCS, the climate risk of the range of potential interventions to be implemented under the Udhyam Nepal Activity are all determined to be either moderate or low.

In order to identify more specific climate risks and determine how best to address and manage them, the Activity shall conduct climate risk screening for each targeted sector as an award condition. The Contractor, sub-contractors, and grantees shall integrate and implement the identified climate risk management options specific to each sector as part of USAID environmental compliance requirements.

TERMS AND CONDITIONS OF THIS DEFERRAL

1. USAID/Nepal will ensure the required IEE is completed in the timeframe designated herein.

2. If the required environmental review cannot be completed in the designated time frame, an amendment will be prepared and approved with justification and with a revised time frame.

3. USAID/Nepal will ensure that appropriate language to carry out the requirements of this deferral is incorporated into relevant award documents, including requirements relating to development of the IEE.

Relevant award language shall ensure that implementation plans will be modified in accordance with the environmental review.

4. USAID/Nepal will (i) ensure an irreversible commitment of resources will be avoided until the environmental review is completed, and (ii) ensure appropriate environmental reviews are completed for incremental funding actions as subprojects/sub activities or aspects of projects/activities are identified.

5. The CRM will be completed and incorporated into the IEE.

6. USAID/Nepal will clear this deferral with the ASIA BEO as part of the IEE as required by this document.

Deferrals may be cleared for aspects of projects/activities, such as clearing one task order under an IDIQ, while the deferral remains in place for further task orders.

BEO SPECIFIED CONDITIONS OF APPROVAL

[For BEO’s input, if any]

IMPLEMENTATION

In accordance with 22 CFR 216 and Agency policy, the conditions and requirements of this document become mandatory upon approval.

USAID APPROVAL OF DEFERRAL OF IEE

ACTIVITY NAME: Udhyam Nepal

14 Agrawala, S., Raksakulthai, V., van Aalst, M., Larsen, P., Smith, J. and Reynolds, J., 2003. Development and climate change in Nepal: Focus on water resources and hydropower (pp. 14-28). Paris: Oecd.

https://www.climatelinks.org/sites/default/files/asset/document/2017_USAID%20CCIS_Climate%20Risk%20Profile_Nepal.pdf

Bureau Tracking ID: ASIA 21-049

APPROVED…