MARKET TRANSFORMATION STRATEGY FOR PALM OIL

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					                 Implementation Procedures Manual




       BACP IMPLEMENTATION PROCEDURES MANUAL
                       As approved on

                         April 2, 2009




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                                                          Table of Contents


ACRONYMS ................................................................................................................................................. 3
ORGANIZATIONAL INFORMATION AND CONTACTS ............................................................................. 4
  INTERNATIONAL FINANCE CORPORATION (IFC) ............................................................................................. 4
  CHEMONICS INTERNATIONAL INC. ................................................................................................................. 4
  ECOAGRICULTURE PARTNERS ..................................................................................................................... 5
  GLOBAL ENVIRONMENT FACILITY (GEF)....................................................................................................... 5
  INDUSTRY-LED AGRICULTURAL COMMODITY GLOBAL MULTI-STAKEHOLDER INITIATIVES (―COMMODITY
  ROUNDTABLES‖) ......................................................................................................................................... 6
PROGRAM OVERVIEW ............................................................................................................................... 9
PROGRAM PARTICIPANTS ...................................................................................................................... 11
  IFC .......................................................................................................................................................... 12
  STEERING COMMITTEE .............................................................................................................................. 12
  PROGRAM MANAGEMENT UNIT .................................................................................................................. 13
  MONITORING AND EVALUATION UNIT .......................................................................................................... 14
  GRANTEES................................................................................................................................................ 15
  COMMODITY ROUNDTABLES ...................................................................................................................... 16
BACP GRANTS FACILITY......................................................................................................................... 17
  GRANT APPLICATION PROCESS ................................................................................................................. 17
  PROJECT SELECTION PROCESS ................................................................................................................. 22
  GRANT IMPLEMENTATION........................................................................................................................... 24
ANNEXES ................................................................................................................................................... 26
  ANNEX A: GRANT APPLICATION FORM........................................................................................................ 27
  ANNEX B: GRANT APPLICANT SELF ASSESSMENT FORM ............................. ERROR! BOOKMARK NOT DEFINED.
  ANNEX C: CERTIFICATION REGARDING SANCTIONABLE PRACTICES ............................................................. 30
  ANNEX D: CERTIFICATION REGARDING THE EXCLUSION LIST AS DEFINED IN THE IFC ENVIRONMENTAL &
  SOCIAL REVIEW PROCEDURES .................................................................................................................. 35
  ANNEX E: GRANT BUDGET INSTRUCTIONS .................................................................................................. 39
  ANNEX F: GRANT BUDGET COST PRINCIPLES ............................................................................................. 41
  ANNEX G: SAMPLE COST NOTES ............................................................................................................... 43
  ANNEX H: PROJECT SELECTION CRITERIA .................................................................................................. 47
  ANNEX I: GRANTEE QUARTERLY REPORTING TEMPLATE ............................................................................. 49
  ANNEX J: GRANTEE REQUEST FOR PAYMENT FORMS ................................................................................. 53
  ANNEX K: TEMPLATE FOR MID-PROJECT AND END OF PROJECT MONITORING & EVALUATION REPORTING .... 58
  ANNEX L: BACP DONORS ......................................................................................................................... 61
  ANNEX M: TERMS OF REFERENCE FOR THE STEERING COMMITTEE OF THE BACP ....................................... 63




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                                Acronyms

BACP     Biodiversity and Agricultural Commodities Program
BMP      Better management practice
BTC      Biodiversity Technical Committee
FUNBIO   Brazilian Biodiversity Fund
GEF      Global Environment Facility
HCV      High Conservation Value
IFC      International Finance Corporation
IITA     International Institute of Tropical Agriculture
LFP      Local Focal Point (of the BACP)
M&E      Monitoring and Evaluation
MTS      Market Transformation Strategy
NGO      Nongovernmental organization
P&C      Principles and Criteria
PMU      Program Management Unit (of the BACP)
RFA      Request for grant application
RSPO     Roundtable on Sustainable Palm Oil
RTRS     Roundtable on Responsible Soy
SHEMSI   Safety, Health, and Environmental Management Services International




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                Organizational Information and Contacts

INTERNATIONAL FINANCE CORPORATION (IFC)
IFC fosters sustainable economic growth in developing countries by financing private
sector investment, mobilizing capital in the international financial markets, and providing
advisory services to businesses and governments.

Over the years, the IFC has shown that good investment performance is compatible
with creating employment, a healthy environment and an improved quality of life in
developing countries. IFC, as a partner of choice, can help companies gain a
competitive advantage through environmental and social risk reduction and
management, and identification of opportunities to enhance business value.

Specifically, IFC's work in biodiversity aims to enhance the achievement of the triple
bottom line of financial profitability, environmental sustainability, and social responsibility
of private companies that are interested in contributing to sustainable use of biodiversity
resources.

Representative:
Catherine Cruveillier Cassagne
Program Manager, Biodiversity Markets
Environment and Social Development Department
2121 Pennsylvania Ave., NW
Washington, DC 20433 - USA
Email: bacp@ifc.org
Web: www.ifc.org

CHEMONICS INTERNATIONAL INC.
Chemonics is an international development consulting firm that promotes meaningful
change to help people live healthier, more productive, and more independent lives.
Around the world, Chemonics designs and implements projects in financial services,
private sector development, health, environmental management, gender, crisis
prevention and recovery, democracy and governance, and agriculture.

Chemonics’ environmental services practice stresses the use of market-based
incentives, enhanced management systems, and careful audit protocols to help
enterprises reduce environmental and social impacts. Chemonics offers solutions in
environmental services, natural resource management, and climate change by
combining cross-cutting services such as trade facilitation, conformity assessments,
governance, gender assessments, and finance. Chemonics’ record in sustainable
agribusinesses and forestry is complemented by its service offerings in water and
coastal zone management and responsible tourism.


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Representative:
Richard Warner
Director, Latin America & Caribbean
1717 H Street, NW
Washington, DC 20006 - USA
E-mail: bacppmu@chemonics.com
Web: www.chemonics.com

ECOAGRICULTURE PARTNERS
Ecoagriculture Partners supports rural communities to produce food and enhance their
livelihoods while protecting the biological diversity of plant and animal life, and
educating policymakers, institutions, and innovators in ecoagriculture management
approaches. EP supports diverse ecoagriculture innovators from the agriculture,
conservation and rural development sectors to strengthen and scale up their
ecoagriculture management approaches by strengthening understanding of
ecoagriculture; facilitating collaboration amongst practitioners, and mobilizing strategic
institutional change to enable ecoagriculture.

Ecoagriculture Partners seeks to support the emerging global movement for
ecoagriculture. To serve this diverse constituency, Ecoagriculture Partners follows these
principles:

      Food and livelihood security and rural poverty alleviation as key drivers for
       action;
      Conservation of biodiversity in all its forms, locally as well as globally;
      Protection of ecosystem services needed for both humans and wildlife;
      Supporting agricultural (including pastoral, fisher and forest) communities as
       primary stewards of our ecosystems and biodiversity, integral to decision-making
       processes at local, national and international level.

Representative:
Sara J. Scherr
President and CEO
730 11th Street, NW, Suite #301
Washington, DC 20001 – USA
Tel: +1 (202) 393-5315 Fax: +1 (202) 393-2424
Email: sscherr@ecoagriculture.org
Web: www.ecoagriculture.org

GLOBAL ENVIRONMENT FACILITY (GEF)
The Global Environment Facility (GEF), established in 1991, helps developing countries
fund projects and programs that protect the global environment. GEF grants support



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projects related to biodiversity, climate change, international waters, land degradation,
the ozone layer, and persistent organic pollutants.

GEF is an independent financial organization that provides grants to developing
countries for projects that benefit the global environment and promote sustainable
livelihoods in local communities.

As the financial mechanism of the Convention on Biological Diversity (CBD), the Global
Environment Facility (GEF) helps developing countries and countries with economies in
transition to achieve the objectives of the CBD and generate global environmental
benefits in the area of biodiversity. Biodiversity projects constitute the largest
percentage of GEF’s portfolio, making up 36 percent of total GEF grants. Between 1991
and 2006, the GEF provided approximately $2.2 billion in grants, and leveraged about
$5.17 billion in co-financing in support of more than 750 biodiversity projects in 155
countries. The goal of GEF’s biodiversity program is the conservation and sustainable
use of biodiversity, the maintenance of the ecosystem goods and services that
biodiversity provides to society, and the fair and equitable sharing of the benefits arising
out of the utilization of genetic resources.

Contact information:
GEF Secretariat
1818 H Street, NW, MSN G6-602
Washington, DC 20433 – USA
Email: secretariat@thegef.org
Web: www.gefweb.org

INDUSTRY-LED AGRICULTURAL COMMODITY GLOBAL MULTI-STAKEHOLDER
INITIATIVES (“COMMODITY ROUNDTABLES”)

Roundtable on Sustainable Palm Oil (RSPO)
The RSPO is an association created by organizations carrying out their activities in and
around the entire supply chain for palm oil to promote the growth and use of sustainable
palm oil through co-operation within the supply chain and open dialogue with its
stakeholders. In particular, the RSPO will work on the following tasks:

      Research and develop definitions and criteria for the sustainable production and
       use of palm oil;
      Undertake practical projects designed to facilitate implementation of sustainable
       best practices;
      Develop solutions to practical problems related to the adoption and verification of
       best practices for plantation establishment and management, procurement, trade
       and logistics;
      Acquire financial resources from private and public funds to finance projects
       under the auspices of the Roundtable on Sustainable Palm Oil;
      Communicate the Roundtable's work to all stakeholders and to a broader public.


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Contact information:
Roundtable on Sustainable Palm Oil (RSPO)
Suite A-06-04, Plaza Mont Kiara
2, Jalan Kiara
50480 Kuala Lumpur
Malaysia
Email: rspo@rspo.org
Web: www.rspo.org

Roundtable on Responsible Soy Association (RTRS)
The goal of the RTRS is to set up a multi-stakeholder and participatory process that
promotes economically viable, socially equitable and environmentally sustainable
production, processing and trading of soy. The RTRS is formed by representatives of
producers, industry, trade & finance, and civil society organizations and pursues the
following objectives:

      Reach consensus among key stakeholders and players linked to the soy
       industry.
      Act as forum to develop and promote criteria for the production of soy on an
       economically viable, socially equitable and environmentally sustainable basis.
      Promote and replicate sustainable soy pilot projects.
      Act as an internationally recognized forum for the monitoring of global soy
       production in terms of sustainability.
      Mobilize diverse sectors interested in participating in the global roundtable
       process and organize roundtable conferences on a periodical basis.

Contact information:
Roundtable on Responsible Soy Association (RTRS)
Azcuenaga 1860 (Piso 3)
Buenos Aires, Argentina
Email: info@responsiblesoy.org
Web: www.responsiblesoy.org

Better Sugarcane Initiative (BSI)
The BSI is a collaboration of sugar retailers, investors, traders, producers and NGOs
who are committed to sustainable sugar by establishing principles and criteria that are
applied in the sugar growing regions of the world through regionally specific strategies
and tools. The BSI aims to reduce the impact of sugarcane production on the
environment in measurable ways that will also enable sugar production in a manner that
contributes to social and economic benefits for sugar farmers and all others concerned
with the sugar supply chain.




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The goal of the BSI is, through the encouragement of better management practices
(BMPs), to reduce farm and other sugar processing impacts. The BSI recognizes that
BMPs can only be a means to an end, however, and not the end itself. Incremental
improvement through the establishment of dynamic and ever improving benchmarks
and baselines is the overall objective. The BSI recognizes the opportunities and
limitations of BMP’s as a tool for environmental management and improving overall
environmental performance and reducing waste in a world where reduced impacts are
demanded by governments, investors, buyers and NGOs. The BSI sees BMP’s as a
tool for producers to increase their competitiveness in markets that are becoming
increasingly competitive. The BSI is interested in building capacity.

Contact information:
Email: http://www.bettersugarcane.org/contact_form.htm
Web: www.bettersugarcane.org




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                                Program Overview
The Biodiversity Agricultural Commodities Program (BACP) is a program of the
International Finance Corporation (IFC), funded by the Global Environment Facility
(GEF) IFC and several donors. The overarching goal of the BACP is to contribute to the
preservation of global biodiversity within agricultural landscapes by increasing the
production and sale of sustainably produced and verified commodities. This goal will be
achieved by leveraging the economic forces that govern four selected commodity
markets: (1) palm oil, (2) soy, (3) sugar cane, and (4) cocoa. Initially BACP will focus on
palm oil and soy. Change within these markets will be realized by working closely with
commodity roundtables and their members, regulatory institutions, and policy makers.

To achieve the overall goal of the BACP, the program will provide grants to support
projects that fall within the following four components:

      Promote the adoption of biodiversity-friendly practices within institutional
       and regulatory environments. Illustrative projects include forums between
       industry groups and governments, research and case studies to define and
       document the economic benefits of biodiversity, and capacity building of public
       institutions, especially those related to land use.

      Improve production practices of targeted commodities to improve the
       preservation of global biodiversity. Illustrative projects include testing better
       management practices (BMPs) and training producers, small farmers and larger
       plantation managers in biodiversity-friendly practices.

      Increase demand for products with positive biodiversity impacts. Illustrative
       projects include the definition of measurable standards, as well as the promotion
       and adoption of certification or verification schemes.

      Promote the development of financial products and services to facilitate
       and encourage the adoption of biodiversity-friendly practices. Illustrative
       projects include studies to assess the risks and barriers for the establishment of
       lines of credit or financing instruments for institutions promoting biodiversity-
       friendly activities across the supply chains of targeted commodities.

The BACP is a 10-year program divided into two separate five year phases. The
program is currently in the first five year phase. Exhibit 1 highlights a simplified logical
framework for the program. The indicator targets therein were set for the 10-year
program, but more refined indicator targets for the end of the initial 5 years will be
developed based upon the initial activities of the BACP. These 5-year indicator targets
may also be referred to as ―triggers‖ as they will trigger the continuation of the BACP
into a second phase (years 6-10) should they be achieved.




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Exhibit 1




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                            Program Participants
The following main actors are involved in the implementation of the BACP:

      IFC
      Steering Committee
      Program Management Unit (PMU) including its Local Focal Points (LFPs)
      Monitoring and Evaluation Unit (M&E unit)
      Commodity Roundtables
      Grantees

The interaction between these actors is summarized below in Exhibit 2. The flow of
communications between these actors and their specific roles and responsibilities are
elaborated in the remainder of this section.

Exhibit 2




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IFC

Program Role
The IFC developed the BACP, and as the executor of the program, the IFC supervises
the work of the PMU and M&E unit. The IFC also provides strategic oversight of the
program, convenes the Steering Committee, and provides the final approval of the
grants recommended by the PMU. The IFC is also an active member of all concerned
commodity roundtables.

Responsibilities
The IFC is responsible for the following key activities:

         Providing strategic direction to the program
         Supervising PMU and M&E activities and approving their documents and
          deliverables
         Approving RFAs and final grant requests following IFC’s procedures applicable to
          Advisory Services in the Environmental and Social Sustainability Business Line,
          and in consultation with all relevant internal units 1
         Convening the Steering Committee when required
         Funding a portion of the program and governing the flows of funds entrusted by
          the GEF and other donors to IFC for BACP (see Annex M for list of donors that
          have contributed to BACP)

Reporting Requirements
The IFC reports on BACP progress internally to its board, and externally to the GEF and
other BACP donors. IFC also prepares promotional materials, brochures, or articles
(e.g., lessons learned) on the BACP for both internal and external audiences, in
collaboration with PMU and M&E units.

STEERING COMMITTEE

Program Role
The Steering Committee (SC) is a group of key professionals and experts that approve
the key BACP strategic documents.

Responsibilities

1
    IFC follows here in particular the procedures of the Sustainability Business Innovator, a facility that
      partially funds BACP. The relevant units that together participate in the review and selection of BACP
      projects are the Agribusiness Department, the Environmental and Social Development Department
      and the specific country and/or region department concerned by the project.



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The SC is responsible for approving strategic BACP documents and the 5-year indicator
targets (triggers) that will be used to evaluate the effectiveness of the first phase of the
BACP and the justification for a second phase of BACP implementation.

Specifically, the Steering Committee is responsible for the following:

      Approval of commodity market transformation strategies and of their subsequent
       revisions
      Approval of the project selection criteria
      Approval of the triggers that will be used to measure the success of the BACP’s
       first phase

For more information about the roles and responsibilities of the SC see the terms of
reference see Annex N or visit the BACP website (www.bacp.net)

Reporting Requirements
Other than approving the minutes of their meetings, the SC has no specific reporting
obligations.

PROGRAM MANAGEMENT UNIT

Program Role
Chemonics staffs and operates the BACP PMU under contract with IFC. The PMU is
responsible for the day-to-day management of the BACP Grants Facility, including the
development of market transformation strategies for each of the BACP target
commodities. To achieve global reach, the Washington D.C. based PMU works through
the following regionally based representatives, or Local Focal Points:

      Brazil — Brazilian Biodiversity Fund (FUNBIO)

      Southeast Asia — Safety, Health, and Environmental Management Services
       International (SHEMSI)

      West Africa — International Institute of Tropical Agriculture (IITA)

Responsibilities
The administrative and technical responsibilities of the PMU are the following:




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       Development of key program strategy and documentation. The PMU is
        responsible for developing and/or revising a strategy2 for each of the target
        commodities. The commodity strategies are approved by the Steering Committee
        and provide the framework for the implementation of BACP activities.

       Program administration. The PMU is responsible for the day-to-day oversight
        of the BACP Grants Facility’s financial, contractual, and administrative aspects.
        The PMU coordinates program activities with the M&E unit and other program
        participants.

       Grants administration. In consultation with the IFC and the M&E unit, the PMU
        is responsible for preparing and issuing requests for grant applications (RFAs)
        and the recommendation of grants for final approval by the IFC. Once a project
        has been approved, the PMU is responsible for contracting, paying, and
        overseeing grant implementation.

       Knowledge management and communications. The PMU is responsible for
        ensuring that all stakeholders are informed of new market standards, better
        management practices, and BACP activities. Communications are transmitted
        through regular newsletters.

Reporting Requirements
The PMU prepares and submits semiannual and annual reports to the IFC.

MONITORING AND EVALUATION UNIT

Program Role
Ecoagriculture Partners (EP) co-finances, staffs and operates the BACP M&E unit
under a grant agreement with the IFC. The M&E unit ensures that BACP activities are
adequately monitored and evaluated. With regards to evaluation, the M&E unit
measures the impact of the BACP on the biodiversity of agricultural landscapes of
BACP target commodities and supports BACP grantees to meet their M&E
requirements in close coordination with the PMU.

Responsibilities
The M&E unit has the following responsibilities:

       Monitor and Assess Program M&E Data. The M&E unit is responsible for
        periodically monitoring, assessing, and providing feedback on the collection,
        quality, and analysis of M&E data by grantees. The M&E unit also makes
2
    In the BACP Program Appraisal Document (PAD), the program strategies for each commodity are
    referred to as ―Market Transformation Strategies (MTS).‖



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       recommendations on how this process can be improved and integrated into the
       certification systems developed by the commodity roundtables.

      Share M&E Better Practices. The M&E unit is responsible for devising and
       initiating a communication and learning mechanism between grantees,
       commodity roundtables, and external resources to share experiences, build M&E
       capacity, and document lessons learned. This process is fully integrated with
       BACP knowledge management and communications.

      Review M&E Component of Project Proposals. In conjunction with PMU, the
       M&E unit is responsible for reviewing the M&E components of grant proposals to
       aid in the selection of candidates with potential for highest impact.

      Strengthen Grantees’ M&E Components. The M&E unit is responsible for
       providing advice to grantees on their M&E components, as well as training and
       technical assistance on implementing M&E activities.

      Provide M&E Feedback to the PMU and Grantees. The M&E unit is
       responsible for providing feedback to the PMU and grantees on their reports and
       other deliverables.

      Verify Positive Impact of Commodity Verification and Certification on
       Biodiversity. The M&E unit will produce a methodology that links the use of a
       certification system in agricultural commodity markets to actual impacts on
       biodiversity.

Reporting Requirements
The M&E unit prepares and submits semiannual reports to the IFC and contributes M&E
data to the overall BACP annual reports, prepared by PMU.

GRANTEES

Program Role
Grantees implement specific projects that fall under the BACP market transformation
strategies. The ultimate success of the BACP is based upon the practices, processes,
and methodologies that grantees develop or test using BACP grant funding. Projects
funded by the BACP must have at least one partner that is a member of the relevant
commodity roundtable.

Responsibilities
Grantees have the following responsibilities:




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      Implementation of BACP projects in accordance with binding grant agreements
      Tracking and reporting on assigned project M&E performance indicators
      Communication of lessons learned within the BACP community via the PMU, the
       commodity roundtables and through any other venues

Reporting Requirements
Grantees are required to submit short and concise quarterly reports to the PMU.
Grantees are also required to provide detailed reporting on their projects M&E activities
at both the midpoint and completion of their projects, using the template in Annex L.

COMMODITY ROUNDTABLES
The BACP works closely with commodity roundtables throughout the implementation of
BACP activities to ensure harmonization and legitimatization of BACP activities.
Commodity roundtables convene the primary groups associated with BACP target
commodities through multi-stakeholder processes. While each roundtable has a
commodity specific mission, their general approach involves the adoption of sustainable
commodity production verification or certification systems.

Commodity roundtables have no formal reporting requirements or responsibilities vis a
vis BACP unless they are the recipients of a BACP grant. In those circumstances
roundtables have the same responsibilities and reporting requirements as other
grantees.




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                              BACP Grants Facility
Through the BACP Grants Facility, the PMU disburses to grantees against approved
projects that transform the markets of the four BACP commodities in such a way that
commodity production has a measurably reduced impact on biodiversity.

GRANT APPLICATION PROCESS
Applying for a BACP grant is a two-phase process. Applicants must first submit a
project proposal in response to a specific RFA using the form provided in this manual as
Annex A. The proposal must be accompanied by a budget and M&E plan. Proposals will
be evaluated according to the eligibility and selection criteria outlined below. Applicants
whose projects successfully meet the RFA criteria are approved by both the BACP
evaluation committee and the IFC. Applicants are then invited to participate in a
negotiation phase, in which activities, outputs, timelines and M&E plans are more
clearly defined and incorporated into a grant agreement. Detailed instructions on how to
submit project proposals are outlined below.

Grant Applicant Requirements
Applicants must have at least one implementing partner in their project proposal that is
a member of the commodity roundtable referenced in the applicable RFA. Applicants
may be NGOs, private companies, public or private research institutions, or a
consortium of any of the above. Although they are not members of the commodity
roundtables, government entities (local, regional, and national) may apply for grant
funding, provided their proposals address the BACP objectives, respond to the RFA
requirements, and meet all the criteria outlined below. Applicants are strongly
encouraged to form partnerships to secure the required 2:1 co-financing and to ensure
that their projects will be expanded upon and financed beyond the life a BACP grant.

Project Duration and Grant Amounts
BACP grants will typically have a duration of 6, 12, 18 or 24 months. Extensions beyond
24 months will be considered on a case-by-case and exceptional basis. Each RFA will
indicate the maximum duration for which applicants may propose activities and their
associated budget. Grant awards will range from $50,000 to $600,000 (in US dollars).

Minimum Programmatic Eligibility Criteria
Applications for BACP funding must meet the following eligibility criteria in order to be
considered. Project proposals submitted by applicants who do not meet these criteria
will not be considered.

   1. Applicants must be members of the relevant commodity roundtable, or include a
      member of the roundtable in their partner consortia. Exceptions (such as


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       governmental institutions) will be examined on a case-by-case basis by IFC in
       collaboration with the relevant roundtable, and upon submission of a specific
       grant application.

  2. Proposals must fit within the objectives of BACP and the relevant market
     transformation strategy.

  3. Applicants must offer a minimum co-financing ratio of 2:1 (two dollars of co-
     finance for every BACP dollar) and all proposals must clearly document sources
     of co-financing, including letters of commitment from co-financiers, the amount of
     co-financing and whether it is cash or in-kind, and a plan to seek matching funds
     In-kind co-financing is acceptable but can make up no more than one-quarter of
     total co-financing proposed and must concern expenses strictly related to the
     proposed project. In-kind co-financing may include gifts of goods or services
     instead of cash, including donated space, materials or time. Separate accounting
     will be required in order to verify all forms of co-financing. In situations in which
     an otherwise excellent project (in terms of fit with BACP objectives) would not
     meet the 2:1 co-financing requirement at the time of submission, but would at
     least meet a 1:1 match, IFC would accept to engage into helping the applicant
     with fundraising for the balance. There is no guarantee, however, that this would
     be successful and there is no exception to the 2:1 match

  4. Project proposals must include the services of a recognized biodiversity
     conservation specialist who will guide the applicant’s strategies and who will play
     a substantial role in the implementation of the proposed grant activities. The
     biodiversity conservation specialist may be an individual or an organization such
     as a local or international NGO or research entity.

  5. Proposed projects must not have any adverse social impacts, as defined in
     Annex E: Certification Regarding the Exclusion List as Defined in the IFC
     Environmental & Social Review Procedures. In addition, BACP will not fund any
     activities that impinge on the lands owned, or claimed under adjudication, by
     Indigenous Peoples without full documented consent of such peoples. BACP
     also recognizes that in many cases projects will have positive social impacts (i.e.
     increased employment for local communities, fair trade certification, etc). In
     cases where projects will have positive social impacts, proposals should identify
     these positive impacts.

  6. Proposed activities must be aligned with national biodiversity strategies and
     action plans of the country where proposed activities will occur.

  7. BACP will not fund any activities listed in the IFC Environmental and Social
     Review Procedures Exclusion List. As part of their grant application requirements
     applicants will be required to sign a certification that contains the Exclusion List
     (See Annex E).




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   8. BACP will only support activities whose performance levels go beyond
      compliance with national or local laws and regulations and the IFC’s Policy and
      Performance Standards on Social and Environmental Sustainability.

Project Specific Selection Criteria
Proposals from applicants that have met the eligibility criteria outlined above will be
evaluated based upon the following project specific selection criteria:

Objectives

   1. Extent to which proposed activities address the goals of BACP and the targeted
      market transformation strategy.

Biodiversity Impact

   2. Extent to which proposed activities demonstrate that they will have a positive
      impact or will reduce the negative impact of production, demand, or
      commercialization of the targeted commodity on biodiversity. Impact reduction
      can be direct (such as through the implementation of specific production or
      milling practices) or indirect (through studies to generate information for better
      decision making, financing, and other activities).

   3. Extent to which proposed activities target biodiversity of global significance,
      including high conservation value habitat, habitat for threatened species (those
      listed by the International Union for Conservation of Nature and Natural
      Resources - IUCN), areas listed in a country’s national biodiversity strategy and
      action plan, and areas that provide critical ecosystem services.




Incrementality

   4. Extent to which proposed activities demonstrate that without BACP funding, the
      projects would not have taken place, or would have taken place at a later date,
      on a smaller scale, or with fewer benefits to biodiversity of global significance.

Sustainability

   5. Proposals must show that their proposed practice or approach is ultimately
      based on a sound business practice and its benefits will be maintained and
      improved upon over the long term, even when BACP funds are terminated.

Replicability



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   6. Proposals must give concrete examples of how project results can or will be
      replicated. All else being equal, BACP will favor projects with high replication
      value.

Information Dissemination

   7. All projects must include an information dissemination component to share
      lessons learned across relevant commodity stakeholders.

Measurability

   8. Extent to which proposed activities include a set of Specific, Measurable,
      Achievable, Relevant and Timely (SMART) performance indicators to monitor
      implementation progress and performance towards achieving their intermediary
      milestones and final outputs and impacts that are consistent with the overall
      objectives and log frame of the BACP (see Exhibit 1).

Budget

   9. Extent to which the budget of the proposed activities is reasonable, realistic and
      cost effective.

Additional considerations for the selection of projects

All things being equal, BACP will give priority to projects that:

      Offer higher co-financing ratios than the 2:1 minimum required
      Promise a measurable, positive social impact


How to Apply
Phase 1: Submitting a Project Proposal

Following the release of a BACP issued RFA, applicants are invited to submit a project
proposal using the application form provided in Annex A. A project proposal consists of
the following documents:

   1. BACP Grant Application Form (Annex A).

   2. Proof of Lead Partner or other proposed partners’ membership in the relevant
      commodity roundtable.

   3. CV and/or description of qualifications of the biodiversity conservation specialist
      or entity that will support the project. If this is an organization, please provide a



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       description of the relevant corporate capabilities related to biodiversity
       conservation.

   4. BACP Grant Applicant Self Assessment Form (Annex B)

   5. Certification Regarding Sanctionable Practices (Annex C)

   6. Certification Regarding the Exclusion List as Defined in the IFC Environmental
      and Social Review Procedures (Annex D)

   7. Letters of support from all proposed project partners. Project partners must write
      these letters in the organization’s letterhead, and must certify that they:

          a. Understand their role in the project (The partner must clearly state its role)

          b. Authorize BACP to publicly reference their participation in the project

Note that each proposed partner that is providing co-financing, staff, or other resources,
including access to plantations or facilities essential to implementation, must provide a
letter of support.

Applicants must complete all forms in full. Incomplete grant applications will not be
considered. Applicants must follow the instructions for the preparation of budget
information as outlined in the following Annexes:

      Annex E – BACP Grant Budget Instructions

      Annex F – BACP Grant Budget Cost Principles

      Annex G – Sample Cost Notes

Applicants who have successfully completed all required documentation and have met
all application criteria will be invited to participate in phase two of the application
process. At this time, unsuccessful applicants will also be notified that their proposals
were not selected and they will receive a detailed explanation of the reasons for not
being selected.

Phase II: Project Negotiation

Applicants whose project proposals are evaluated and approved by the BACP
evaluation committee and the IFC will be invited to the negotiation phase. Applicants will
work in close collaboration with the BACP PMU and the M&E Unit to more clearly define
their activities, outputs, timelines, and M&E plans. Questions from the evaluation
committee will also be clarified during this phase and their answers will be incorporated
into the final revised proposal.




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Additional Instructions

All grant application materials that require an authorized signature must be submitted in
Adobe PDF. The complete grant application package must be submitted to the e-mail
address specified in each individual RFA.

PROJECT SELECTION PROCESS
The BACP PMU will periodically issue RFAs under a specific commodity market
transformation strategy. RFAs will be disseminated through the BACP website,
commodity roundtables, industry bodies, and through the contacts of IFC, the PMU and
the M&E Unit. Each RFA will broadly outline activities required to implement a
commodity strategy, and will require applicants to conform to the selection criteria
outlined above as well as RFA specific selection criteria. All selection criteria are based
upon the approved BACP Project Selection Criteria included in Annex I. In addition to
detailed selection criteria, each RFA will include a timetable for application submission.
Applicants are advised to closely follow the grant application guidelines and
requirements outlined in this manual and in the RFA to which they are responding,
paying particular attention to the submission deadline included in the RFA.
Projects will be evaluated in the two-phase process graphically represented in Exhibit 3
below. Following the receipt of all project proposals, a BACP evaluation committee
composed of 3 to 5 members of the PMU and the M&E Unit will evaluate them. The
PMU will then submit its recommended project proposals to the IFC for final selection.
Following the IFC’s final approval, the PMU will forward the selected project proposals
to the appropriate commodity roundtable for its no-objection.

Applicants whose project proposals are approved by the BACP evaluation committee
and the IFC will be invited to participate in Phase II of the selection process and will
receive comments and requests for more information on their grant applications from
the PMU. The PMU and the M&E Unit will also provide further guidance on defining and
refining project activities, outputs, timelines and M&E plan. Applicants who are not
selected to proceed to Phase II will be notified immediately. Note that passage to
Phase II of the evaluation is not a guarantee of funding. The final award decision for
grants rests with the IFC, based on the recommendation of the PMU and the no
objection of the appropriate roundtable

In addition to the approval of the IFC, all BACP funded grants that will take place in
Brazil are required by the Brazilian Government to be cleared by the Brazilian GEF local
focal point. The PMU will submit all recommended project proposals to the Brazilian
GEF local focal point at the proposal stage, immediately after selected by IFC.

Following the completion of Phase II, the PMU will post all proposals recommended for
funding on the BACP website (www.bacp.net) for 10 business days and will announce
this posting in a newsletter. This public announcement will contain a brief description of
the grant and the name of the organization that has submitted the project. Note that no
proprietary information will be posted on the website. After the 10-day public


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announcement period is over, the PMU will officially inform the selected applicants that
their projects have been recommended for funding.

The PMU will be responsible for preparing, negotiating and signing the grant agreement
with the successful applicants, as well as disbursing grant funds and overseeing the
party responsible for project implementation.

Applicants should note that the Chemonics International Sr. Vice President, Contracts is
the only individual who may legally commit BACP to the expenditure of funds. No costs
allocable to the proposed grant activity may be incurred before receipt of a fully
executed grant agreement.

Exhibit 3




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GRANT IMPLEMENTATION

Grantee Reporting Requirements
Grantee reporting requirements (periodic progress reports) are summarized below in
Exhibit 4 and have been streamlined to maximize the amount of effort that grant
recipients can dedicate towards technical implementation. Once a grant is awarded,
grantees will be required to report on their activities and outputs on a quarterly basis.
This reporting requirement should be fulfilled in addition to any deliverable required
under a grant agreement in a verifiable manner. A quarterly grantee reporting template
can be found in Annex I.

Exhibit 4




The preferred grant type will be fixed-price. Under exceptional circumstances, when
fixed-price grants are not possible, reimbursable grants will be awarded. Throughout the
duration of a grant activity, the PMU and the M&E unit will conduct site visits in order to
provide oversight of project grant implementation and provide technical assistance.




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Grant Disbursement Schedules

Fixed-price grants disbursements will be processed when an output or a set of outputs
is achieved and approved by the PMU and upon submission of the Request for
Payment form provided in Annex K. Reimbursable grants disbursements will be made
quarterly upon submission of the Request for Payment form (Annex K) and quarterly
financial and activity report. All grantees receiving reimbursable grants will be required
to submit a copy of their financial statements, audited by an independent auditor, within
90 days after the end of each fiscal year. Regardless of the type of grant a grantee
receives, all grantees must submit a quarterly report on their activities as described
above.

Monitoring and Evaluation of Projects
Grantees are required to work closely with the M&E unit to implement a project specific
M&E plan. Each project M&E plan will be based upon performance indicators developed
for the overall BACP. The M&E Unit will work closely with grantees on quarterly M&E
reporting requirements and throughout project implementation to help improve and
measure project progress and biodiversity impacts. Quarterly monitoring will assess to
what extent projects have achieved their proposed targets for each reporting period.
The M&E unit will provide grantees with regular feedback based upon actual project
performance that will allow grantees to adjust project activities to achieve planned
results if necessary. This continual feedback model is illustrated in Exhibit 5.

Exhibit 5




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Annexes

ANNEX A:   BACP GRANT APPLICATION FORM

ANNEX B: BACP GRANT APPLICANT SELF ASSESSMENT FORM

ANNEX C: CERTIFICATION REGARDING SANCTIONABLE PRACTICES

ANNEX D:   CERTIFICATION REGARDING THE EXCLUSION LIST AS DEFINED IN
           THE IFC ENVIRONMENTAL & SOCIAL REVIEW PROCEDURES

ANNEX E: BACP GRANT BUDGET INSTRUCTIONS

ANNEX F: BACP GRANT BUDGET COST PRINCIPLES

ANNEX G: SAMPLE COST NOTES

ANNEX H: BACP PROJECT SELECTION CRITERIA

ANNEX I:   GRANTEE QUARTERLY REPORTING TEMPLATE

ANNEX J: GRANTEE REQUEST FOR PAYMENT FORM

ANNEX K:   TEMPLATE FOR MID-PROJECT AND END OF PROJECT MONITORING
           & EVALUATION REPORTING

ANNEX L: BACP DONORS

ANNEX M:   TERMS OF REFERENCE FOR THE STEERING COMMITTEE OF THE
           BACP




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ANNEX A: GRANT APPLICATION FORM

Instructions: Applicants must respond to each of the following questions. Please limit
your responses to Sections I –III of the Grants Application Form to 15 pages maximum,
including instructions. There is no page limit for Sections IV-V of the Grant Application
Form. Prior to completing this form, please carefully review directions and guidelines in
the Implementation Procedures Manual, the relevant RFA, and the market
transformation strategy.

Section I: Project Information

   1. Project Title:                                   2. Target Commodity:


   3. Location and Size in Hectares (if                4. Proposed Project Dates:
   applicable) of Project Site:



   5. Name of Lead Partner Submitting                  6. Primary contact person for this
   this Application:                                   application: (Please provide the name and e-
                                                       mail address)

   7. List all proposed project partners, contact information for all of them, and the
   roles they will play in the implementation of your project: (Project partners are
   organizations that will provide financial or in-kind resources to the project including cash
   contributions, staff time, technical assistance, and use of plantations or other facilities. Do not
   include in this list any project beneficiaries.)




   8. Please provide a brief synopsis of your project of 300 words or less. (If your
   project is approved for funding, this synopsis will be posted on www.bacp.net for 10 days prior to
   grant agreement negotiations)




Section II: Project Overview

   1. Context: Describe the overall need or problem this project seeks to address
   and how your project addresses it. Include in this section the overall goal of your project,
   the specific project objectives, and a list of proposed activities associated with each project
   objective. Following each activity, please explain the context of why that activity is important, how


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   it will help you reach your objectives, who will be involved in the implementation, where it will take
   place, the overall scope, expected impact, and any critical assumptions. Please note that both
   your objectives and activities will be incorporated into your Project M&E Plan (Annex B). To
   facilitate this process, please clearly number each objective. Your activity descriptions (minus
   contextual information) will be copied directly into the plan.



   2. BACP Component: Under which BACP component(s) does your project fall
   and how does it contribute to the goals and targets of this component? (See Exhibit
   1 in the BACP Program Implementation Procedures Manual)




Section III: Project Conformity to BACP Criteria

   1. Biodiversity Impact: Describe how the project will contribute to the reduced
   impact of production, demand or commercialization of the targeted commodity on
   biodiversity of global significance. What assumptions lead you to conclude that
   the methodology proposed will result in biodiversity conservation?


   2. Environmental Adverse Impact. Describe any possible positive or negative
   environmental impacts of your project that are related to the project’s objectives
   and are separate and different from the positive impact that this project will have
   on biodiversity. If your project will have negative impacts, please explain how
   you propose to address any negative impact.


   3. Social Impact: Describe any potential social impacts (positive or negative) that
   might arise as a result of implementing this project. BACP will not fund any
   projects that have a negative social impact. If your project will have positive
   social impacts, please describe how the targeted community will benefit from the
   project.


   4. Country Drivenness. Give a brief explanation of how this project fits within the
   national biodiversity strategy and action plans of the country where the proposed
   activities will take place.


   5. Incrementality. What will happen to this project if it does not receive BACP
   funding?

   6. Sustainability. Describe how the results of the project and its impact will be
   maintained or improved in the long run after BACP funding ends.




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   7. Replicability. Describe how the results of your project can or will be replicated
   within your organization or company or within the sector in which you work.
   Please provide concrete examples of how you propose to achieve this.


   8. Information Dissemination. Outline your plan for disseminating the project’s
   results.


   9. Biodiversity Expert: Provide the name and qualifications of the individual
   and/or organization that will be supporting your project. (For individuals, please attach
   a current resume. For organizations or companies please attach a description of the corporate
   capabilities of this organization or company as they relate to its biodiversity conservation
   qualifications).

   10. Co-financing: Does your project offer a minimum 2:1 co-financing ratio (2
   Dollars for every 1 Dollar of BACP funding)? If your project offers a higher ratio,
   please specify the ratio. (Please list all your sources of co-financing, the amounts, and
   whether it is cash or in-kind)

Section IV: Project Monitoring and Evaluation

Please see the BACP M&E Plan template at www.bacp.net.

Section V: Budget

Please see the BACP Budget template at www.bacp.net. Detailed instructions on filling
out the budget template are included in Annexes F, G, and H. Please provide all cost
information in United States Dollars. Note that although this template is designed for a
two-year grant, your project may be shorter. You should modify your budget depending
on your proposed start and end dates. These are also sample cost categories and
some of them may not be applicable to all organizations or your project. Only fill out
those categories that apply to your specific proposed project. Applicants must provide
cost notes to explain the budget (Please refer to Annex H for a sample cost notes).


   Submitted by:
   On behalf of the Lead Partner identified in Section A, ―General Project
   Information,‖ of this Grant Application Form, I hereby certify that to the best of my
   knowledge, this grant application in its entirety contains only true and current
   information:
   Name:
   Title:
   Signature:
   Date:




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ANNEX B: GRANT APPLICANT SELF ASSESSMENT FORM
Accepting a grant from BACP creates a legal duty on the grantee to use the funds in
accordance to the grant agreement and IFC and Chemonics regulations. Prior to
awarding a grant, BACP must assess the adequacy of the financial and accounting
systems of a prospective grantee, as well as its capacity to implement it to ensure
accountability if a grant is awarded.

In filling out the Self Assessment Form, each question should be answered as
completely as possible, using extra pages if necessary. Please return your completed
Self Assessment Form to BACP.

APPLICANT INFORMATION

Name of Lead Partner:

Activity Title:

Name, Title, Contact Information of Individual Completing Questionnaire:




SECTION A: INTERNAL CONTROLS
Internal controls are procedures that ensure:

       financial transactions are approved by an authorized individual and follow laws,
        regulations and the organization's policies,
       assets are kept safely,
       accounting records are complete, accurate and kept on a regular basis.

Please complete the following questions concerning your organization's internal
controls:

List the name, position/title, and telephone number of the individuals responsible for
checking expenditures to make sure they are allowable:




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Responsible for maintaining accounting records:




Responsible for preparing financial reports:




Responsible for preparing narrative reports:




Are timesheets kept for each paid employee? Yes: __ No: __

SECTION B: ACCOUNTING SYSTEM
The purpose of an accounting system is to1) accurately record all financial transactions,
and 2) ensure that all financial transactions are supported by invoices, timesheets and
other documentation. The type of accounting system often depends on the size of the
organization. Some organizations may have computerized accounting systems, while
others use a manual system to record each transaction in a ledger. In either case,
BACP grant funds must be properly segregated, authorized, used for the intended
purpose and recorded in an organized and regular manner.

Briefly describe your organization's accounting system including: a) any manual ledgers
used to record transactions (general ledger, cash disbursements ledger, suppliers
ledger etc.); b) any computerized accounting system used (please indicate the name);
and c) how transactions are summarized in financial reports, (by the period, project,
cost categories)?




Does your organization have written accounting policies and procedures?
Yes: __            No: __




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Are your financial reports prepared on a:

Cash basis: __

Accrual basis: __ (Accrual - bill for costs before they are incurred)

Can your accounting records separate the receipts and payments of BACP grant from
the receipts and payments of your organization's other activities?
Yes: __             No: __

Can your accounting records summarize expenditures from the BACP grant according
to different budget categories such as salaries, rent, supplies and equipment?
Yes: __              No: __

How do you allocate costs that are ―shared‖ by different funding sources, such as rent,
utilities, etc.?




How often are financial reports prepared?
  Monthly: __ Quarterly: __ Annually: __ Not Prepared: __ (explain)

How often do you input entries into the financial system?
       a. daily __ b. weekly __ c. monthly __          d. ad hoc/as needed __

How often do you do cash reconciliation?
      a. daily __ b. weekly __ c. monthly __             d. accountant decision __

 Do you keep invoices, vouchers and timesheets for all payments made from grant
funds?
Yes: __            No: __

SECTION C: FUNDS CONTROL
BACP grantees must maintain a separate bank account registered in the name of the
organization for the purpose of keeping only BACP grant funds. The bank account may
be in local currency or U.S. dollars depending upon local requirements. BACP normally
pays grantees monthly by bank transfer to this separate account. Access to the bank
account must be limited to authorized individuals. Bank balances should be compared
each month with your accounting records. For petty cash, it is very important to keep
the cash in a strong safe and have strict controls over cash maintenance and
disbursement.




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Do you have a bank account registered in the name of your organization?

Yes: __             No: __

Will the bank account draw interest?

Yes: __             No: __

Are all bank accounts and check signers authorized by the organization's Board of
Directors or Trustees or other authorized persons?

Yes: __             No: __

Will any cash from BACP grant funds be kept outside the bank account (in petty cash
funds, etc.)?

Yes: __             No: __

 If yes, please explain the amount of funds to be kept and the name and position/title of
the person responsible for safeguarding cash.




SECTION D: AUDIT
BACP may require an audit of your organization's accounting records. An audit is a
review of your accounting records by an independent accountant who works for an
accounting firm. An audit report contains your financial statements as well as an opinion
by the accountant that your financial statements are correct. Please provide the
following information on prior audits of your organization.

Does your organization have regular independent audits that you contract and pay for?
Yes: __ (please provide the most recent copy)
No audits performed: __

If yes, who performs the audit?




How often are audits performed?

       Quarterly: __ Yearly: __ Every 2 years: __ Other: __ (explain)


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If your organization does not have a current audit of its financial statements, please
provide a copy of the following financial information, if available:

               a. "Balance Sheet" for your prior fiscal or calendar year; and
               b. "Revenue and Expense Statement" for your prior fiscal or calendar
               year.

Are there any reasons (local conditions, laws, or institutional circumstances) that would
prevent an independent accountant from performing an audit of your organization?
Yes: __            No: __

If yes, please explain:




CHECKLIST AND SIGNATURE PAGE
BACP requests that your organization submit a number of documents along with this
completed questionnaire. Complete this page to ensure that all requested information
has been included.

Please complete the checklist below, then sign and return the questionnaire and any
other requested documents to BACP.

Complete the checklist:

___ Incorporation Papers or Certificate of Registration and Statute have been
provided to BACP.
___ Copy of your organization's most recent audit has been provided to BACP (If no
recent audit, a "Balance Sheet" and "Revenue and Expense Statement" for the prior
fiscal year).
___ All questions have been fully answered.
___ An authorized individual has signed and dated this page.

The Accounting Questionnaire must be signed and dated by an authorized person who
has either completed or reviewed the form.

Approved by:

                                   __________________________
Print Name                         Signature

                                   __________________________
Title                              Date


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ANNEX C: CERTIFICATION REGARDING SANCTIONABLE PRACTICES
By signing and submitting this grant application, the applicant provides the certification
set out below:

The Applicant represents that neither it nor any Person* acting on its behalf, has
committed or engaged in any Sanctionable Practice with respect to the Project and shall
not engage in (and shall not authorize or permit any Person acting on its behalf to
engage in) with respect to the Project, any Sanctionable Practices. The Applicant further
covenants that should Chemonics notify the Applicant of its concerns that there has
been a violation of the provisions of this Certification, it shall cooperate in good faith with
Chemonics and its representatives in determining whether such violation has occurred,
and shall respond promptly and in reasonable detail to any notice from Chemonics, and
shall furnish documentary support for such response upon Chemonics' request.

For purposes of this Certification ―Sanctionable Practices‖ means any Corrupt Practice,
Fraudulent Practice, Coercive Practice, Collusive Practice, or Obstructive Practice as
those terms are defined herein and interpreted in accordance with the following Anti-
Corruption Guidelines:

Corrupt Practices
A "Corrupt Practice" is the offering, giving, receiving or soliciting, directly or indirectly, of
anything of value to influence improperly the actions of another party.

Interpretation

A.     Corrupt practices are understood as kickbacks and bribery. The conduct in
question must involve the use of improper means (such as bribery) to violate or
derogate a duty owed by the recipient in order for the payor to obtain an undue
advantage or to avoid an obligation. Antitrust, securities and other violations of law that
are not of this nature are excluded from the definition of corrupt practices.

B.     It is acknowledged that foreign investment agreements, concessions and other
types of contracts commonly require investors to make contributions for bona fide social
development purposes or to provide funding for infrastructure unrelated to the project.
Similarly, investors are often required or expected to make contributions to bona fide
local charities. These practices are not viewed as Corrupt Practices for purposes of
these definitions, so long as they are permitted under local law and fully disclosed in the
payor's books and records. Similarly, an investor will not be held liable for corrupt or
fraudulent practices committed by entities that administer bona fide social development
funds or charitable contributions.

*
    Any individual legally authorized to represent the Applicant or to enter into legal agreements on its
    behalf



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                            BACP Monitoring and Evaluation Plan




C.       In the context of conduct between private parties, the offering, giving, receiving or
soliciting of corporate hospitality and gifts that are customary by internationally-accepted
industry standards shall not constitute corrupt practices unless the action violates
applicable law.

D.     Payment by private sector persons of the reasonable travel and entertainment
expenses of public officials that are consistent with existing practice under relevant law
and international conventions will not be viewed as Corrupt Practices.

E.     The World Bank Group does not condone facilitation payments. For the purposes
of implementation, the interpretation of ―Corrupt Practices‖ relating to facilitation
payments will take into account relevant law and international conventions pertaining to
corruption.

Fraudulent Practices
A "Fraudulent Practice" is any action or omission, including misrepresentation, that
knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial
benefit or to avoid an obligation.

Interpretation

A.      An action, omission, or misrepresentation will be regarded as made recklessly if
it is made with reckless indifference as to whether it is true or false. Mere inaccuracy in
such information, committed through simple negligence, is not enough to constitute a
―Fraudulent Practice‖ for purposes of this Agreement.

B.      Fraudulent Practices are intended to cover actions or omissions that are directed
to or against a World Bank Group entity. It also covers Fraudulent Practices directed to
or against a World Bank Group member country in connection with the award or
implementation of a government contract or concession in a project financed by the
World Bank Group. Frauds on other third parties are not condoned but are not
specifically sanctioned in IFC, MIGA, or PRG operations. Similarly, other illegal behavior
is not condoned, but will not be considered as a Fraudulent Practice for purposes of this
Agreement.

Coercive Practices
 "Coercive Practice" is impairing or harming, or threatening to impair or harm, directly or
indirectly, any party or the property of the party to influence improperly the actions of a
party.

Interpretation




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                            BACP Monitoring and Evaluation Plan


A.    Coercive Practices are actions undertaken for the purpose of bid rigging or in
connection with public procurement or government contracting or in furtherance of a
Corrupt Practice or a Fraudulent Practice.

B.      Coercive Practices are threatened or actual illegal actions such as personal
injury or abduction, damage to property, or injury to legally recognizable interests, in
order to obtain an undue advantage or to avoid an obligation. It is not intended to cover
hard bargaining, the exercise of legal or contractual remedies or litigation.

Collusive Practices
"Collusive Practice" is an arrangement between two or more parties designed to
achieve an improper purpose, including to influence improperly the actions of another
party.

Interpretation

Collusive Practices are actions undertaken for the purpose of bid rigging or in
connection with public procurement or government contracting or in furtherance of a
Corrupt Practice or a Fraudulent Practice.

Obstructive Practices
An "Obstructive Practice" is (i) deliberately destroying, falsifying, altering or concealing
of evidence material to the investigation or making of false statements to investigators,
in order to materially impede a World Bank Group investigation into allegations of a
corrupt, fraudulent, coercive or collusive practice, and/or threatening, harassing or
intimidating any party to prevent it from disclosing its knowledge of matters relevant to
the investigation or from pursuing the investigation, or (ii) acts intended to materially
impede the exercise of IFC’s access to contractually required information in connection
with a World Bank Group investigation into allegations of a corrupt, fraudulent, coercive
or collusive practice.

Interpretation

Any action legally or otherwise properly taken by a party to maintain or preserve its
regulatory, legal or constitutional rights such as the attorney-client privilege, regardless
of whether such action had the effect of impeding an investigation, does not constitute
an Obstructive Practice.

General Interpretation
A person should not be liable for actions taken by unrelated third parties unless the first
party participated in the prohibited act in question.




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                            BACP Monitoring and Evaluation Plan


This Certification is an express term and condition of any agreement issued as a result
of this grant application, and any violation of it shall be grounds for unilateral termination
of the agreement by Chemonics and IFC prior to the end of its term.

APPLICANT:
Name: _____________________                Signature:     ____________________
Title: ____________________                Date:          ____________________




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                                 BACP Monitoring and Evaluation Plan


ANNEX D: CERTIFICATION REGARDING THE EXCLUSION LIST AS DEFINED IN THE
IFC ENVIRONMENTAL & SOCIAL REVIEW PROCEDURES
By signing and submitting this grant application, the applicant provides the certification
set out below:

The Applicant certifies that should it be awarded a BACP grant, no portion of the Grant
shall be used in connection with any activities excluded by the IFC Exclusion List.
Chemonics reserves the right to cancel or require the repayment of a Grant if it
determines that any part of the Grant will be used to finance any goods or services
relating to any such excluded activities.

For purposes of this Certification the IFC E&S Review Procedures Exclusion List
includes the following:

IFC does not finance the following projects:

       Production or trade in any product or activity deemed illegal under host country
        laws or regulations or international conventions and agreements, or subject to
        international bans, such as pharmaceuticals, pesticides/herbicides, ozone
        depleting substances, PCB’s, wildlife or products regulated under CITES.
       Production or trade in weapons and munitions3.
       Production or trade in alcoholic beverages (excluding beer and wine)
       Production or trade in tobacco.
       Gambling, casinos and equivalent enterprises.
       Production or trade in radioactive materials. This does not apply to the purchase
        of medical equipment, quality control (measurement) equipment and any
        equipment where IFC considers the radioactive source to be trivial and/or
        adequately shielded.
       Production or trade in unbonded asbestos fibers. This does not apply to
        purchase and use of bonded asbestos cement sheeting where the asbestos
        content is less than 20%.
       Drift net fishing in the marine environment using nets in excess of 2.5 km. in
        length.

A reasonableness test will be applied when the activities of the project company would
have a significant development impact but circumstances of the country require
adjustment to the Exclusion List.

All financial intermediaries (FIs)4, must apply the following exclusions, in addition to
IFC's Exclusion List:
3
    This does not apply to project sponsors who are not substantially involved in these activities. "Not
    substantially involved" means that the activity concerned is ancillary to a project sponsor’s primary
    operations.
4
    For the purpose of this list Chemonics is considered a Financial Intermediary.



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       Production or activities involving harmful or exploitative forms of forced
        labor5/harmful child labor6.
       Commercial logging operations for use in primary tropical moist forest.
       Production or trade in wood or other forestry products other than from
        sustainably managed forests.

APPLICANT:
Title: ____________________                       Date: ____________________
Name: _____________________                       Signature: _________________




5
    Forced labor means all work or service, not voluntarily performed, that is extracted from an individual
    under threat of force or penalty.
6
    Harmful child labor means the employment of children that is economically exploitive, or is likely to be
    hazardous to, or to interfere with, the child’s education, or to be harmful to the child’s health, or
    physical, mental, spiritual, moral, or social development.



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ANNEX E: GRANT BUDGET INSTRUCTIONS
The budget must outline clearly the costs of the proposed project, and shall be
accompanied by a clear explanation or cost notes for all cost items or categories.
Include in your budget the costs of implementing the M&E system for your
proposed project under the appropriate line item. For example, if you are hiring a
Monitoring and Evaluation Specialist, list his name and title under Salaries, as well as
his rate.

Refer to Annex G Grant Budget Cost Principles to check the acceptable costs principles
based on existing IFC and Chemonics policies. A sample of the cost notes is provided
in Annex H.

The following are the possible cost items which can be used in preparing the budget:

Salary: This refers to the cost of services of project staff directly involved with project
activities. Please include in this line item any employment benefits that staff paid from
this project will receive. These may be health insurance, unemployment benefits,
educational benefits, etc. Benefits should be calculated based on the standard
employment benefits offered by the organization where they will work and should follow
the minimum requirements mandated by law.

Consultants: This refers to costs for the payment of expert services rendered by
consultants.

Travel and Transport: This covers costs related to the travel and transport expenses of
staff involved in the day-to-day project management activities and must cover only
those travel expenses directly related to the implementation of the BACP funded
proposed project. This does not include travel and transport costs of participants during
training events, meetings, seminars or workshops.

Trainings, Seminars, Orientations, Workshops: This refers to all the costs incurred
for organizing and actually conducting training events, workshops, orientations or
seminars including travel.

Meetings: This refers to costs incurred when conducting meetings participated in by
representatives from target firms, management team, other relevant meetings
associated with the attainment of the grant objectives and implementation of the
different activities.

Other Direct Costs: Other costs associated with the implementation of the grant
activity that are not included in any other cost category specified above.

Indirect Costs: Indirect costs are costs used to support the operation of the applicant
and which will not be directly billed to the grant. These may be overhead or general and
administrative costs. All applicants claiming indirect costs in their budget must


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submit a copy of their established indirect cost rate or audited financial
statements which clearly show how the organization has determined the indirect
rate.

All proposed grant activity costs must be within the normal operating practices of the
Applicant and in accordance with its written policies and procedures.

All line items must be supported by budget notes (please refer to Annex H to see a set
of sample budget notes) with enough detail to allow the BACP PMU to determine if the
cost is allowable under the grant. Budgeted amounts must also be supported by
justification, and the applicant must be able to provide supporting documents to the
BACP PMU if requested.

Regardless of whether a successful applicant eventually receives a fixed price grant or
a reimbursable grant, all applicants must submit a detailed budget for their proposed
projects.




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 ANNEX F: GRANT BUDGET COST PRINCIPLES

 Cost Principles
 In preparing the budget, the following cost principles should be considered:

 Allowable cost

 Allowable costs are those strictly for the achievement of the project and which are not
 subject to any restrictions or limitations in the award.

 Unallowable cost

 Unallowable costs are those costs that cannot be paid for with BACP grant or co-
 finance funds. The following table presents the costs which are unallowable under
 BACP grant and co-finance funds:

                                                                Unallowable under    Unallowable under
                            Cost
                                                                BACP Grant Funds    Co-Financing Funds
Stipends for training or workshop participants                         X
Expenses of any research or training programs other than
those integral to achievement of the targets specified in the          X                     X
proposed project
Cost for ceremonies, parties, celebrations, or
                                                                       X                     X
―representation‖ expenses.
Purchase of any goods or services listed in the IFC’s
                                                                       X                     X
Exclusion List (See Annex E)
Purchase of goods or services from countries that are not
members of the International Bank for Reconstruction and
Development (IBRD). For a complete list of IBRD members,
see:                                                                   X                     X
http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/OR
GANIZATION/BODEXT/0,,contentMDK:20122865~menuPK:6402
0025~pagePK:64020054~piPK:64020408~theSitePK:278036,00.h
tml
Capital expenses or assets, including construction
materials and labor, vehicles, computer equipment, and                 X                     X
                  *
office furniture.
Any grantee headquarters expenses that are not directly
                                                                       X                     X
linked to the implementation of the proposed project
Previous obligations                                                   X                     X
Bad debts                                                              X                     X
Fines                                                                  X                     X
Penalties                                                              X                     X
Creation of endowments                                                 X                     X
Contingency Fees                                                       X                     X
Income fees or taxes                                                   X                     X

 *
     Exceptions to this are: Satellite images used in direct connection to the grant activities, minor
     measuring equipment and the cost of leasing computer or other equipment used in direct connection
     to grant activities



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Allocable cost

Allocable costs are costs which are incurred specifically for the attainment of the
objective of the grant.

Reasonable cost

Defined as a cost which is generally recognized as ordinary and necessary and would
be incurred by a prudent person in the conduct of normal business

Budget Guidelines per cost category
Salary

For staff to be hired directly for the purpose of the grant activity, the rate will follow the
existing salary structure within the organization for a similar position.

Consultants

Cost estimates for the payment of consultants should be based on the established rate
of the company or organization. If this cannot be used, the salary history of the
consultant can serve as a basis for budgeting. Quoted rates must be supported by
appropriate documents (e.g. employment certificate or payroll sheet).

Travel and Transport

Please specify the cost per person of travel expenses, including transportation,
accommodation and per diem. Whenever possible, applicants are strongly encouraged
to use co-financing funds to finance travel expenses.

Trainings, Seminars, Workshops

Base the cost estimates on the prevailing rates in the area where the activity will be
conducted. Include all the possible cost items in the computation. Please see example
below.

Activity:                        Conduct of training for palm oil producers in locality X

Possible Cost items:            Lodging
                                Venue and food
                                Equipment rental
                                Training materials
                                Speakers/Lecturer
                                Speakers fee/honorarium



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In computing for the budget, take note of the number of participants and duration of the
training.

Training, seminar and workshop costs should be kept to the minimum, and, to the
extent possible, be paid with co-financing funds.

Meetings

Indicate the number of attendees in the meeting and what is included in that cost.
Services should be inclusive of all meals, refreshments, and office space and
equipment rental if applicable.

Other Direct Costs (ODCs)

For other costs associated with the grant activity, these should be specified in the
budget notes and budgeted per item. Examples of ODCs are: prepaid
card/communication, courier or mailing expenses, reproduction cost, office supplies,
equipment leasing, office rental and utilities, if these are not part of your indirect cost
structure. If office rent and utilities are included under this item, BACP funds should only
be used to pay those rental and utilities expenses that are directly related to BACP
activities.

Indirect Costs

Indirect costs are costs used to support the operation of the applicant and which will not
be billed directly to the grant. These may be overhead or general and administrative
costs. Applicants shall only budget indirect costs when they have an established indirect
cost rate which has been determined through a financial audit. All applicants claiming
indirect costs in their budget must submit a copy of their established indirect
cost rate or audited financial statements which clearly show how the organization
has determined the indirect rate.

Co-Financing

All BACP grantees will be required to provide co-financing at a ratio of 2:1 (two dollars
of co-finance for every BACP dollar). In-kind co-financing is acceptable but can make up
no more than one quarter of the budget. In-kind co-financing may include gifts of goods
or services instead of cash, including donated space, materials or time.

   1. When the co-financing requirement is being fulfilled with in-kind contributions,
      including labor, the grantee shall provide the value of that in-kind contribution in
      this section. For example, if the co-financing requirement is being fulfilled in part
      by providing a person paid for by other sources, the grantee should provide the
      person’s daily and hourly rate, and the time that this person will be working on
      the project. Using these numbers, the grantee shall calculate the monetary value




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       of the labor of this person. In-kind contributions cannot amount to more than one-
       quarter of the total co-financing proposed.

   2. Co-financing must be thoroughly explained in the cost notes that accompany the
      budget, including whether it is cash or in-kind.

Additional Restrictions

   1. Budget for contingency cost is not allowed. Every cost item should be associated
      with an activity.

   2. Budget for payment of taxes should be built-in in the cost per item. No separate
      allocation for taxes will be made, proposed, or approved.

   3. Payment of profit/ fee on top of all other expenses or costs incurred for
      conducting activities related to the grant proposal is not allowed.




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ANNEX G: SAMPLE COST NOTES

Organization XYZ

Salaries
Organization XYZ proposes four professionals on staff. The Director, Eduardo Serrano,
will provide direct technical assistance, project coordination, and management of the
office. Salaries for professionals are based on their current earnings. Proposed salaries
are gross figures—i.e., they include income and social taxes payable by the employees.
All staff members are budgeted full-time through the life of project, except for Mr.
Roque, Training specialist. Fifty percent of Mr. Roque’s time will devoted to the project
while the other time will be devoted to other Organization XYZ initiatives.

Organization XYZ will pay from its own budget the time of one full time monitoring and
evaluation professional to provide technical assistance to the project. His daily rate is
US$150 per day and he will dedicate 50% of his time to the grant activities.

Travel and Transportation
Organization XYZ’s travel agent Travel Deals Inc. will handle air travel arrangements
and ticketing. Our travel costs are based on current quotes from our travel agent.
Specific cost assumptions are described below.

In-country travel: We have included 7 round trip tickets from Rio de Janeiro to Recife.
4 tickets are budgeted for the training under task 2 and 3 for our 3 local staff members
to travel to the pilot activity under task 1. Air travel is budgeted at US$150 per trip based
on average roundtrip fares between Rio de Janeiro and Recife. All ticket expenses will
be paid from co-financing sources provided by Company X.

Ground Transfers: Ground transportation is estimated for transportation to and from
the airport of the destination city.

Meals: We budgeted US$1,200 in meals for the four trainers at an average of US$30
per day per person for the 10 days of training under Task 2. We budgeted US$300 in
meals for 3 people at an average of US$20 per day per person for the 5 days.

Trainings, Seminars, Workshops

Based on project and in-country experience, we have budgeted for workshops to
include meals, meeting space, and associated costs for 50 participants over 10 days. All
workshop costs will be covered with co-financing funds provided by Company X.




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Other Direct Costs
Communications: Estimated costs cover postage and courier services, telephone,
mobile phone, fax, Internet access, and electronic communications. Based on in-country
research, we have budgeted US$50 per month to cover these costs. All communication
costs will be paid with co-finance funds provided by Donor X.

Reproduction costs: Based on our experience on similar projects, we estimate US$40
per month for paper, copy charges, and other costs associated with the reproduction of
reports, training materials, and day-to-day copies for accounting back-up and
communications purposes. All reproduction costs will be paid with co-finance funds
provided by Donor X.

Expendable supplies: Based on past experience managing projects of this size, we
have budgeted US$40 per month for office supplies such as paper, pens, and other
expendable materials. All expendable supplies costs will be paid with co-finance funds
from Donor X.

Office rent, utilities, maintenance: Based on price information obtained, we estimate
US$700 per month for office rent, utilities, and maintenance. Organization XYZ will need
to find additional space for project implementation as current space is too small. We
intend to acquire space in a guarded building, which will result in a cost savings to the
project. 50% of the office rent, utilities and maintenance will be paid with co-financing
funds provided by Donor X.




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ANNEX H: PROJECT SELECTION CRITERIA
The following Project Selection Criteria were approved by the BACP Steering
Committee at their inaugural meeting on March 31, 2008. Conformance to these criteria
will be assessed throughout the project grant application process and project
implementation.

General

      All projects submitted to BACP PMU for funding must offer a minimum ratio of
       2:1 (two dollars of co-finance for every BACP dollar).

      All projects must fit within the categories and directions given in the relevant
       Market Transformation Strategy, as prepared by the BACP PMU and approved
       by the BACP Steering Committee, for each commodity

      All projects must follow a format and other to guidelines set forth in the
       Implementation Manual

      All projects must comply with the IFC’s Policy and Performance Standards on
       Social and Environmental Sustainability, which can be obtained from the IFC
       Web site (www.ifc.org/ifcext/enviro.nsf/Content/EnvSocStandards).

      All project proponents that are in any of the relevant roundtable member
       categories will need to be actual members to benefit from BACP funding.
       Exceptions (such as governmental institutions) will be examined and accepted on
       a case by case basis by IFC in collaboration with the relevant roundtable.

      In general, BACP funds will go to third parties such as nongovernmental
       organizations (NGOs); small, local, specialized agricultural or environmental
       consulting firms; associations; applied research institutions; field schools;
       foundations; and others that can implement technical assistance. Funds can be
       channeled via a private company only when these funds can be clearly
       segregated as directed towards an eligible BACP project.

Reduced impact of production on biodiversity of global significance

      Project proposals must clearly demonstrate how they will reduce the negative
       impact of production on biodiversity. Impact reduction can be direct (such as
       through the implementation of specific production or milling practices) or indirect
       (through studies to generate information for better decision making, financing,
       and other activities).

      Projects must target biodiversity of global significance, including high
       conservation value (HCV) habitat, habitat for threatened species (those listed by



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       the International Union for Conservation of Nature and Natural Resources -
       IUCN), areas listed in a country’s national biodiversity strategy and action plan,
       and areas that provide critical ecosystem services.

      All projects must be supported by a recognized biodiversity conservation
       specialist (individual or organization), such as a local or international NGO or
       research entity.

Incrementality

      Proposals must demonstrate that without BACP funding, the projects would not
       have taken place, or would have taken place at a later date, on a smaller scale,
       or with fewer benefits to biodiversity of global significance.

      Proposed activities must contribute to a transformation of the impact on
       biodiversity of producing or processing the target commodity, or a transformation
       in the market uptake of commodities with less impact on biodiversity.

      BACP funds will only support performance levels that are beyond compliance
       with national or local laws and regulations and the IFC’s Policy and Performance
       Standards on Social and Environmental Sustainability.

Clear and measurable outputs, impacts, and indicators

      Proposals must present expected outputs and impacts that are consistent with
       the goals described.

      Proposals also need to include indicators to monitor implementation progress
       and performance (intermediary outputs and milestones) towards achieving their
       final outputs and goals.

      Chosen projects will be required to include impact measures at the project and
       landscape levels, in addition to proxy measures, to demonstrate their impact on
       achieving stated biodiversity conservation targets.

      Proposals must state clear, causal relationships between the adoption of better
       management practices (BMPs) and biodiversity conservation, and their
       underlying assumptions, as a prerequisite for financial support. At a minimum,
       these impacts should focus on changes in habitat area and quality, if species-
       level M&E is not practical or appropriate.

Co-financing

      Proposals must clearly document sources of co-financing at a ratio of 2:1 (two
       dollars of co-finance for every BACP dollar). All else being equal, BACP will give



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       priority to projects with higher co-financing ratios. In-kind co-financing is
       acceptable but can form no more than one-quarter of total co-financing proposed,
       and must concern expenses strictly related to the proposed project. Separate
       accounting will be required in order to verify this.

Social impacts and local engagement

      Proposals must identify and address potential social issues by demonstrating a
       partnership with a relevant local community or social organization. At a minimum,
       the proposed project must prove that it does not have any adverse social
       impacts. BACP will look favorably on projects that promise a measurable,
       positive social impact, all other things being equal.

Country Drivenness

      Although BACP is a global program which utilizes global markets forces,
       individual projects must be country-driven and in line with national development
       priorities.

Sustainability

      Projects must show that their practice or approach is ultimately based on a sound
       business practice and its benefits will be maintained and improved upon over the
       long term, even when BACP funds are terminated.

Replicability/Adaptability

      Proposals should give concrete examples of how projects results can or will be
       replicated. All else being equal, BACP will favor projects with high replication
       value.

      In the interest of replicability, preference will be given to projects that include a
       private-sector partner committed to scaling-up practices developed or tested via
       BACP.

      All projects must include an information dissemination component to share
       lessons learned.

Restrictions

      Proposals must concern only BACP target commodities: palm oil, soybeans,
       sugarcane, and cocoa.

      Projects can be global in nature (RT) or in one of the BACP countries (TBD,
       TBD, TBD, etc.)


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      BACP will not promote production changes that merely meet local, legal, or
       regulatory requirements.




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ANNEX I: GRANTEE QUARTERLY REPORTING TEMPLATE

Instructions
Reports must describe the technical activities implemented during the reporting period,
progress to date regarding the desired M&E impacts of the project, and lessons learned,
success stories and obstacles encountered. Information from the Quarterly Reports will
be selectively used in the BACP Newsletter, reports, website, and other BACP
publications to illustrate the lessons learned and successes gained through the
program. Whenever possible grantees should use specific examples to illustrate their
lessons learned. Grantees are encouraged to use tables and graphs to illustrate results.
Please attach any project related multi-media materials (including photos, video and
audio), publications, manuals, or toolkits produced during this reporting period.

Project Information
Country of Project Implementation:   Commodity:                    Project Name:

Lead Partner:                        Overall Project Duration:     Current Reporting Period:



Project Summary

Key Highlights

Summarize the key
project highlights for
the reporting period

Key Risks/Issues

Identify key
risks/issues, including
status on follow-up
areas from previous
supervision report.
Describe your
proposed actions to
address these
risks/issues


Key Next Steps



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Lessons Learned

Describe any lessons
learned from your
project that might be
useful for other
projects or to other
actors involved in the
commodity value chain
for the commodity that
you are working with or
any other commodity

Project Results Dissemination
BACP requests that grantees document, through photography and narration, successes
of their projects. Grantees should be aware that these stories and photos will be edited
and selectively shared with BACP stakeholders through the BACP e-newsletter, website
and reports. Though BACP highly encourages grantees to submit stories and photos
with each report for visibility of their projects, we understand that success stories may
not become apparent until the later stages of the grant.

Additionally, for any materials submitted, grantees are asked to obtain signed
permission for any persons appearing in photos or featured in success stories. Below
are guidelines given to grantees on specifications for photo submissions, what to
include in a success story, and obtaining permission.

Photos:

      When taking digital photos, set camera to take high resolution photos (high
       resolution is very important—it means better quality photos.)

      Use a flash, even outside. This is called ―fill flash,‖ and ensures that your
       subject’s facial features are illuminated properly.

      Hold your camera still while you take the photo to ensure perfect clarity.

      When downloading and sending the photo, please send a jpg version and
       maintain a resolution of at least 300 dpi (dots per inch.)



Success Stories:

Success stories submitted by BACP grantees should use a photograph and
approximately 500-600 words to tell a story of how the project is supporting one or more



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of BACP’s four components (1: enabling environment, 2: better production, 3: increased
demand, 4: financial services). Please follow the following guidelines:

      Headline: (5 to 20 words) Keep it simple, jargon-free, and make it have impact.

      Story Lead: (approximately 150-200 words) Grab the readers’ attention while
       presenting the problem your grant addresses and set up the need for a solution.

      Main Body: (approximately 150-200 words) Describe how the project took action
       to improve the situation. Highlight details of what the project did or what BACP
       funded.

      Summary: (approximately 150-200 words) Describe the end result or benefit.
       What was learned? What was the impact? Use concrete results and measures of
       improvement. How did this make a difference in the community and country
       overall? Use this section to end the story with a powerful close.

Please include these details when submitting photographs or success stories:

      Date of photo/story
      Country of photo/Story
      City or region of photo/story
      Name of BACP-funded project, and
      Name(s) of people (if any) featured in photos.

Permission for success stories or photos:

Please request that persons featured in your photos or success stories sign a release
form granting their permission to be featured in the photo or story. Suggested text for
release form:

I, [name], hereby grant [name of your organization] and the Biodiversity and Agricultural
Commodities Program (BACP) a royalty-free, non-exclusive license to use, reproduce,
or publish: my name, prints of photographs, my quotes and stories, or information I may
provide. I acknowledge that I will receive no compensation for materials in which I am
featured, or if information I have provided is featured in materials produced by [name of
your organization] and/or the Biodiversity and Agricultural Commodities Program
(BACP).

Name:
Signature:
Date:




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Detailed Reporting on Project M&E Outputs and Outcomes
Describe your progress towards achieving your outputs and outcomes as defined in
your M&E Plan within your grant agreement. For your outputs and outcomes, please
add a brief description of the activities performed during the reporting period in
fulfillment of each output. All reported achievements should be supported by detailed
M&E data. Please upload the supporting M&E material to the Online M&E System:
www.bacp.net.

Outputs - This refers to products and services that result directly from project activities, e.g., training
events held, reports produced, strategic plans developed, studies completed, publications produced
Line Output                      Indicator                    Activities           Indicator         % of
No.                                                           performed            Target            Target
                                                              associated with                        Completed
                                                              output
1.0

2.0

3.0

4.0

5.0




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Outcomes - This refers to the achievement of project objectives, e.g. change in knowledge, skills,
behavior, productivity, improvements in laws, regulations, policies, etc.
Line Outcome                    Indicator                    Activities         Indicator    % of
No.                                                          performed          Target       Target
                                                             associated with                 Completed
                                                             outcome
1.0

2.0

3.0

4.0

5.0




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 ANNEX J: GRANTEE REQUEST FOR PAYMENT FORMS
                     Payment Request Form for Reimbursement Grants

 Grant Number: _________________              Reporting Period: _________________

 Grantee Name: ___________________________________________________

 Grant Activity Title: ________________________________________________

                                  Total Spent During       Co-financing   Total Requested
              Item
                                   Reporting Period          amount         from BACP
1. Salaries


                     Subtotal

2. Benefits


                     Subtotal

3. Consultants


                     Subtotal

4. Travel & Transportation


                     Subtotal

5. Meetings


                     Subtotal

6. Other Direct Costs


                     Subtotal

7. Indirect Costs




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                              Total Spent During       Co-financing    Total Requested
          Item
                               Reporting Period          amount          from BACP
                 Subtotal

TOTAL

Submitted for Payment. The activities for this reporting period have been achieved in
accordance with all the terms and conditions stated in the BACP Grant Agreement and
all incorporated documents, including the approved Grant Application and budget.

Grantee’s Agent: ______________________________ Date: _______________


For BACP Use Only

Certified. I have reviewed the Technical Report for this reporting period and have found
it to be accurate and complete with respect to my grant file records. My last Grantee
monitoring was on _________________.

BACP Technical Approver: __________________________________________
Date: ___________________________________________________________

Certified. I have reviewed the Financial Records submitted by the Grantee for this
reporting period and have found them to be accurate and complete with respect to my
grant file records. My last Grantee monitoring was on ____________.

BACP Technical Approver: __________________________________________

Date: ___________________________________________________________

Total Grant (USD): ____________________________________
Total Co-financing (USD): ____________________________________

Cumulative Payments (USD):       ____________________________________
(including this Milestone Payment)

Cumulative Co-financing (USD): ____________________________________
(including this Milestone Payment)

Balance (USD):     ____________________________________
Balance Co-financing (USD):   ____________________________________




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                  Payment Request Form for Fixed Priced Grants

Grant Number: _________________           Reporting Period: _________________

Grantee Name: ___________________________________________________

Grant Activity Title: ________________________________________________

                                   Payment Elements

  Output                                                            Output Payment
                  Output          Total Cost of    Co-financing
 Payment                                                          Amount Requested
                Description          Output          Amount
 Number                                                            from BACP (USD)



Submitted for Payment. The above presented outputs have been achieved in
accordance with all the terms and conditions stated in the BACP Grant Agreement and
all incorporated documents, including the approved Grant Application with
implementation and financial plans.

Grantee’s Agent: ______________________________ Date: _______________

For BACP Use Only

Certified. I have reviewed the above Payment Elements and have found them to be
accurate and complete with respect to my grant file records. My last Grantee monitoring
was on _______________. Based on the information collected at that time, it is fair and
reasonable to assume that the Outputs, as specified in the Grant Agreement, have been
achieved.

BACP Technical Approver: _________________________________________
Date: __________________________________________________________

Total Grant (USD):                 ____________________________________
Total Co-financing (USD):          ____________________________________

Cumulative Payments (USD):       ____________________________________
(including this Milestone Payment)

Cumulative Co-financing (USD): ____________________________________
(including this Milestone Payment)

Balance (USD):                     ____________________________________
Balance Co-financing (USD):        ____________________________________




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ANNEX L: TEMPLATE FOR MID-PROJECT AND END-OF-PROJECT M&E
REPORTING

Purpose
This form – together with the accompanying Grantee Quarterly Report – serves for
project monitoring and evaluation to ensure (1) quality and effectiveness of project
implementation, (2) achievement of project outputs, and (3) measurement of project
outcomes and impacts, when properly completed, reviewed, and approved.

Instructions
To complete this form, grantees should use the key performance indicators listed and
defined in the grant agreement. All reported achievements should be supported by
detailed M&E data submitted through the M&E online system.

Each table consists of two rows only: row 1 for the output indicators, and row 2 for the
outcome indicators.

      Total number of indicators - This refers to the sum of all output or outcome
       indicators, as used in your Project M&E Plan.

      Number of indicators completed - This refers to the sum of all output or
       outcome indicators that have been completed at the moment of reporting, i.e.
       mid-project or end-of-project.

      Percentage of indicators completed - Calculate here the percentage of the
       output or outcome indicators that have been completed.

      Remarks - Include here a list of M&E documents attached and uploaded to the
       Online M&E System that support the reported achievements.




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Grant Number: _________________                                   Reporting Period:

Grantee Name:

Project Title:


                                                               Mid-Project M&E Reporting
                                        Total number of        Number of indicators % of indicators              8
       Row     Type of Indicator                   7                                                   Remarks
                                        indicators             completed            completed
               Example:                 E.g., 9                E.g., 3              E.g., 33%          E.g., lists of trainings for farmers
                                                                                                       and attendance sheets

       1       Output indicators

       2       Outcome indicators




                                                              End-of-Project M&E Reporting
                                        Total number of        Number of indicators % of indicators              6
       Row     Type of Indicator                   5                                                   Remarks
                                        indicators             completed            completed
               Example:                 E.g., 9                E.g., 8              E.g., 89%          E.g., final project report, RT reports,
                                                                                                       company documentation

       1       Output indicators

       2       Outcome indicators




7
    Number of indicators proposed to be addressed.
8
    If not all proposed indicators could be addressed at the end of the project, please explain why.



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ANNEX M: BACP DONORS

          Global Environment Facility (GEF)
          Government of Japan
          International Finance Corporation (IFC)
          Government of the Netherlands
          Government of Norway
          Government of Luxembourg




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ANNEX N: TERMS OF REFERENCE FOR THE STEERING COMMITTEE OF THE BACP
                                TERMS OF REFERENCE

                      STEERING COMMITTEE FOR THE
           BIODIVERSITY & AGRICULTURAL COMMODITIES PROGRAM

(Approved by the Steering Committee in its first meeting, on March 31, 2008 – with two
                    added names approved on January 9, 2009)

1.     Objective

The objective of the Steering Committee for the Biodiversity & Agricultural Commodities
Program (BACP) is to orient the work of the Program Management Unit (PMU), so that
BACP achieves its stated impacts.

2.     BACP Background and Rationale

The BACP is a grant-making facility, which aims to reduce, in an innovative and large-
scale manner, the threats posed by agriculture to biodiversity of global significance. The
goal of the BACP is to contribute to preserving global genetic, species and ecosystem
diversity within agricultural production landscapes, by transforming markets for targeted
agricultural commodities. The Program will attempt to move sustainably-produced
commodities from niche markets into the mainstream.

BACP targets four commodity markets over 10 years: palm oil, cocoa, sugarcane, and
soy. Phase 1 (five years) should not focus equally on all four commodities, but fast track
two of them (palm oil and soy). The program’s initial target countries are Brazil (all four
commodities), Cote d’Ivoire (cocoa), Ghana (cocoa, palm oil), Indonesia (palm oil,
cocoa), and Malaysia (palm oil). More countries can be added to the program if it makes
strategic sense, as BACP evolves, and when the GEF focal point of a candidate
additional country has endorsed BACP.

Phase 1 should prove that the market transformation model, enshrined in the BACP
design, does work: that we are, indeed, transforming the markets (see tentative targets),
in terms of market shares, in the program’s log frame; that more biodiversity is being
protected, durably, in the production landscape; or we are clearly on the right path to
doing so.

3.     Composition and Role of the Steering Committee

The Steering Committee is a small international body consisting of members from
different organizations, which would guarantee a needed plurality of views, thematically
and geographically.




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The Steering Committee is composed of:

        Oscar Chemerinski, Director, Agribusiness Department, IFC - Chairman
        Nicole Glineur, Global Environment Facility (GEF) Secretariat;
        Anne Casson, independent expert in the topic of biodiversity in the production
         landscape
        Steven Jaffee, Lead Economist, Agricultural & Rural Development Department,
         World Bank
        Motoko Aizawa, Head – Policy & Standards, Environment & Social Development
         Department, IFC
        Elia Roumani, IFC’s Agribusiness Department, Principal Investment Officer,
         Agribusiness Department, IFC
        Vengeta Rao, Secretary General, Roundtable of Sustainable Palm Oil (RSPO)
        Dan Nepstad, Ecologist, Moore Foundation
        Andrew Gunther, International Finance Corporation
        To be determined: Sugar representative
        To be determined: Cocoa representative

4.       The Responsibilities of the Steering Committee

The Steering Committee will review and approve each Commodity Market
Transformation Strategy, and its subsequent revisions, and the Project Selection
Criteria, which are the documents that govern project selection for BACP funding. The
Steering Committee will also approve the final list of Triggers that will be proposed to
the independent evaluator at mid-term (end of Phase 1).

5.       Reporting Requirements

Minutes of Steering Committee meetings will be posted on the BACP web site, in the
interest of transparency and accountability.

6.       Remuneration

The BACP’s Steering Committee will be nominated and invited by IFC. Members
commit to a minimum two-year term. Membership is unpaid for staff of the World Bank
Group, GEF, and commodity roundtables. Members from an NGO or an
academic/research organization may receive an honorarium, to be negotiated
bilaterally.

7.       Schedule

         a.    IFC will give four weeks’ notice of meeting dates and send documents in
               advance.
         b.    Meetings will be attended in person for those who can easily travel to
               Washington, DC, and by teleconference for remaining members.



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       c.     At IFC’s discretion, some documents requiring approval can be circulated
              by email on a no-objection basis, with a meeting called only if at least two
              Steering Committee members subsequently request it.

9.     Documents Required

To fully perform its duties, the Steering Committee may need

       a.     Program Appraisal Document (PAD) – [especially log frame, governance,
              project cycle, budget]
       b.     Market Transformation Strategy (one for each of the four target
              commodities)
       c.     Project Selection Criteria
       d.     Monitoring & Evaluation Plan
       e.     Implementation Procedures Manual
       f.     Reports from the Program Management Unit (PMU) (biannual)
       g.     Reports from the M&E Unit (biannual)
       h.     Any other information as required by members, and which will be posted
              on www.bacp.net or www.ifc.org/bacp.


For its first meeting, only a, b (for palm oil), and c will be required, in addition to these
TOR’s, to be also be approved in same meeting.

9.     Decision-Making Rules

To approve a decision, the Steering Committee will require a quorum of five members
and a majority vote.




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