Ganesh Kumar Shrestha

Sr. Planning & Admin. OfficerProject for Agriculture Commercialization and Trade

Ministry of Agricultural Development

A Lecture Note for a Training organized by Staff College, Jawalakhel, Lalitpur )

2015

Instrument- an instrument to achieve project's objective. It is purposive from the side of the grant providers, rationale in-built (Agenda- visible), generally controversial.

Competitive Matching Grant

Selective (target group/beneficiaries), Support innovative ideas, Purposive, Agenda visible, Accountability from the side of the grant recipients in-built, monitoring and evaluation remain key issue

Type of grant and maximum value

Minimum beneficiary contribution to sub project costs

Farmers Groups

Coop.Producer

associations Privatefirms

Microenterprises

Small size grant (not to exceed 35,000 US$ equivalent)

50% 50% 50% 70%

Not available

Medium size grant (not to exceed 100,000 US$ equivalent)

Not-eligible 50% 50% 70%

Not available

Micro-grant(not to exceed 10,000 US$ equivalent)

25% 25% Not availableNot

available

25%

1.PACT has made a provision of grant to meet one of its key objectives of developing partnerships in well-performing or emerging agricultural commodity value chains.

2.Grants are available only to the eligible value chain participants from prioritized agricultural commodity value chains.

3. PACT's grant scheme follows an integrated value chain development approach.

4. PACT grants are competitive matching grants

5. PACT matching grants intend to help filling some of the funding gap in the investment capital of the beneficiaries' sub project.

6. Only proposed proposals for sub projects with demonstrated financial sustainability for the joint applicants can be considered for support under PACT's grant scheme.

7. Grant recipients' contribution should come in the form of cash only.

8. PACT follows an output based financing system

9. Compliance with environment and social safeguards is prerequisite to PACT's grant.

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SELECTION OF GRANT RECIPEINTS

Three Stage Assessment Process Competitive, Transparent and Objective

First- Project Concept Note Stage (20-30% selection)

Second- Field Verification (90+ % Approval)

Third- Full Proposal (75+ % Approval)

Micro-grant- Two Stage Evaluation (Proposal + Field Appraisal)

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SECOND STAGE: FIELD VERIFICATION

Technical Appropriat

eness

10

10

Financial evaluation

Technical evaluation Rejection

Full Project Proposal

(By Applicant)

Approved (Sub-project)

Approved (Sub-project)

Aspect Service Delivery within Transfer of Technology (TOT) approach

Service Delivery within Competitive Matching Grant Scheme (CMGS) -PACT

Source of technology

National Agriculture Research System (NARS)

Multiple Sources

Service delivery approach

Piecemeal Holistic and integrative

Value chain integration

Undermined/almost left out High priority

Strategic planning(Time frame)

Long-term Short to medium (Maximum 2-3 years)

Nature of sub-projects

Supply driven Demand driven

Aspect Technology (TOT) CMGS -PACTParticipation Participation

(Conventional/informal/non-tangible))

Partnership based on sharing in investment, risks, benefits (tangible)

Fund channelization

Multilayer, Use of government Agencies and direct transfer to the implementation rare and often partial (activity based)

Output based financing system based on results, Direct to service/grant recipients and no intermediaries

Selection of direct beneficiaries

As to the wishes of the implementing agencies

Transparent competitive process

Sustainability of outputs/outcomes

Low to Medium High

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Key Achievements to Date

14

Project's Current Status (Jan 2015)

15

Project's Projected Status ( July 2015)

16

Projected Status (December 2017)

17

Weighted Progress 2009-013)

18

Achievements by Components

SN. Key Activities Target

(2018)

Current Status Remark

1 Matching Grants to

Eligible Value Chain

Participants (Number)

700 Achieved- 517

(74%)

In process

(two calls)

By July 2015, this

will be achieved

(Likely to reach

950+ except

micro-grant

recipients)- 100%

2 Establishment of

Agribusiness

Incubation Centre

1 Draft contract

signed

Inception stage

Component 1: Agriculture and Rural Business

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Achievements by ComponentsComponent 1: Agriculture and Rural Business

SN. Key Activities Target

(2018)

Current Status Remark

3 Rehabilitation of fire

damaged Kalimati

Fruit and Vegetable

Market, KTM

1 On-going Likely to be

completed before

July 2016

4 Construction of central

wholesale markets

(Fruit & Flower, Fish)

2 DPR

preparation

underway

5 Construction/

rehabilitation of

regional markets

4 Inception

stage

20

Achievements by ComponentsComponent 2: SPS and Food Trade

SN. Key Activities Target

(2018)

Current Status Remark

1 Capacity Enhancement of

DFTQC, VSDAO and

NPQP Laboratories

through the provision of lab

equipments

Demand

basis

Procured in

several lots(Samples analysed in 2013/14 by DFTQC- 34,747, VSDAO- 674 & NPQP:15)

On-going

(No procurement

from next FY)

2 Training to related staff of

aforementioned

departments

Demand

basis

On-going On-going

3 Construction of Fumigation

Chamber and Post

Quarantine Facilities

2 New procurement

process initiated

NOL from the WB

received but yet no

receipt of approval

from the MOAD

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Achievements by ComponentsComponent 3: Project Management and Monitoring and Evaluation

SN. Key Activities Current Status Remark

1 Preparation of Trimester and Annual Project Implementation Reports

On-going (11 reports)

Regular and timely

2 Preparation for Reports for WB Mission

On-going (11 Missions including 3 technical missions)

Regular and timely

3 Submission of unaudited and audited reports

On-going Regular and timely

4 Supervision and Monitoring of Sub-projects

Operation of web-based MIS

Development of mobile APPs

Regular and intensified

5 Disbursement of grant based on field appraisals (Output field verification)

Regular(Call 1 and Call 2 SPs)

Already 88.9% disbursed from call 1 and call 2 commitments

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Achievements by ComponentsComponent 3: Project Management and Monitoring and Evaluation contd..

SN. Key Activities Current

Status

Remark

6 Establishment, operation and supervision of

Project Implementation Support Team

(PRISTs) Offices

5 offices Operational

and active

7 PCN, FPP and field verification guidelines

preparation and orientation

15 +

guidelines

Almost

completed

8 Short studies including value chain

development plan preparation and baseline

studies

12+ Regular

9 Facilitating supervision of the sub-project

sites for MoAD and WB missions

Regular Regular

10 Orientation to PACT focal persons at

department, regional and district

Regular Regular

11 Capacity development related activities such

as training and observation tours for MOAD,

PACT and department officials

Regular Regular

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Call 1, Call 2 and Call 3 (SPs)

Grant Men Women Total % women

Call 1 6444 3852 10296 37.4

Call 2 17493 14011 31504 44.5

Call 3 11481 9692 21173 45.7

Total 35404 27553 62957 43.8

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25

Call

Sub-projects with men SP

Managers

Sub-projects with women SP Managers

Proportion of Women SP

Managers (%)

1 43 6 11.8

2 186 15 7.4

3 235 32 12.0

Total 464 53  10.3%

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Region

Collection Centre

Storage house Processing PlantMarket Shed

Central 28 21 13 4

Pokhara 26 14 12 0

Surkhet 5 4 6 2

Doti 1 2 4 1

Total 60 41 35 7

1. Sustaining the current achievements including infrastructures developed.

2. Increasingly high demands for the PACT's grant (Meeting people's expectations)

3. Delayed in meeting milestones and deadlines by many grant recipients- grant disbursement delay

4. Delayed in field appraisal of the activities and outputs achieved by GRs

5. Integration of value chain functions along specific value chain still problematic and challenging due to tendency of most of the persons to get involved in everything

6. Lacking effective mechanisms for retaining Government Officials due to indirect and direct monetary incentive mechanisms

7. Effective and intensive utilization of Government Officials

1. Direct financing to grassroots organizations increases project reach and it could be one of the best options to enhance competitiveness of small agriculture holders and agribusinesses

2. Shifting from input based financing system to output based competitive grant system is a challenging task. This requires transparency, good governance and proactive service delivery from the side of the service provider.

3. Success of output based financing system depends on intensive and timely monitoring and supervision.

4. Active participation and involvement of MoAD line agencies (government) is crucial in the implementation of big projects like PACT for sustainability of the project activities, outputs, outcomes and impact.

5. Grant and Credit/Loan should be available simultaneously

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