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Investment Climate Improvement Project

Investment Climate Improvement Project. Getting to Grants June 2012. Introduction to ICI – Mr. Maher Hamdan , COP. Objective: To promote Palestinian economic development through greater integration into the global economy

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Investment Climate Improvement Project

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  1. Investment Climate Improvement Project Getting to Grants June 2012

  2. Introduction to ICI – Mr. Maher Hamdan, COP • Objective: To promote Palestinian economic development through greater integration into the global economy • Donor Organization: United States Agency for International Development (USAID) • Implementing Partner: Chemonics International

  3. Results Framework Cross-cutting Themes: Capacity Building, Public Outreach, Communication & Gender

  4. Policy Reform: WTO – Dr. Nidal Sliman ICI is working with the PA to support its bid for WTO Observer status and achieve WTO-compatible trade regime by: • Observer status application • Legislative and regulatory reform • Support trade policy initiatives • Build capacity in trade institutions

  5. Policy Reform: WTO Four Priority Areas • Assist PA to achieve WTO observer status • Assist PA develop WTO-compatible trade policy • Support PA’s WTO National Task Force and Technical Advisory Team • Build capacity in Ministry of National Economy and trade-related public and private sector institutions.

  6. Policy Reform: BEE ICI supports the efforts of the PA to improve the enabling environment for business, investment, and trade by: • Legislative and regulatory reform • Improve PA ranking in World Bank Doing Business Report • Build capacity in advocacy

  7. Policy Reform: BEE Business, Investment, and Trade • Reform areas identified as weak in USAID-BizCLIR and World Bank Doing Business Report • Conduct review of key commercial legislation (Industrial Property Law, Debt Resolution Law, etc.) • Create compendium of key commercial laws in Arabic & English • Capacity building in public and private sector

  8. Fiscal Reform – Mr. FadiHamad To increase fiscal transparency and reduce the budget deficit, ICI is assisting MOF to: • Improve financial management process • Increase tax collection • Increase tax awareness

  9. Fiscal Reform Key Activities • Legal and Regulations • Updating VAT regulations, Unified Tax Procedures Code • Support Tax Computerization • E-Filing and Master taxpayer file • Support implementation of self assessment • Public awareness and training • Capacity development for VAT and income Tax Directorates • Training, workshops, manuals, consultancy • Tax awareness and transparency • Workshops, media campaign, roundtable meetings, brochures. • On line tax information and services.

  10. Getting to Grants Training – Mr. HusamQaradeh The purpose of today’s meeting is to understand: • The role that grants play in achieving ICI’s objectives • The grant application’s detailed requirements • The importance of demonstrating a solid plan to accomplish concrete results • USAID requirements governing personnel, purchasing, reporting, and record-keeping

  11. Role of Grants To increase the number of voices contributing to reform efforts by supporting government outreach efforts and building the private sector and civil society’s capacity to advocate for change. Partnership Agreement: Support or stimulation to accomplish a public/project purpose Consistent with the grantee’s own mandate and purpose

  12. Eligible Organizations • Civil society organizations • Local business associations and professional associations • NGOs • Private-sector institutions and organizations • Private universities • International educational institutions • International research and development organizations * Grantees must be organizations existing under the laws of the PA and must be in compliance with all applicable civil and fiscal regulations

  13. ICI Grant Objectives

  14. Examples of Activities • Develop impact assessment studies on WTO compliance • Internship program with local businesses to encourage women’s interest and participation in the Palestinian economy • Promote a positive business environment in West Bank & Gaza • Activities to increase tax awareness for targeted economic sectors • Projects to support capacity building in CSOs and business associations • Conducting specialized training on MONE legal affairs • Business, economics, and legal education workshops/trainings for CSOs, business associations, and business owners

  15. Grant Application Process

  16. Grant Evaluation ICI will ensure that: • Grants are awarded in a transparent fashion • The proposed grant activity is relevant to ICI and furthers the goals of the project • Sustainability is satisfactorily addressed in the proposal • The applicant meets all applicable USAID regulations

  17. Performance-Based Grants

  18. Evaluation Criteria • Criteria specified in solicitation • Score based on weighted average • USAID will approve all grants

  19. Solid Plan - Technical Quality • Feasibility of Design and Technical Approach • Can reasonably be expected to produce the intended outcomes • Directly contribute to the achievement of ICI’s expected results and performance under the activity • Must be measurable under one or more of ICI’s indicators • Impact on Target Group • Extent to which the proposed activity corresponds to the needs of target group(s) • Degree to which it will directly or indirectly stimulate other organizations to replicate, develop, or implement activities

  20. Solid Plan - Technical Quality • Gender Awareness • Includes a gender component or represents a strong commitment to women as beneficiaries • Past Performance • Previous or ongoing experience implementing similar activities • An applicant’s track-record is a critical factor in assessing the capacity of the applicant to implement the activity

  21. Solid Plan - Organizational Capacity • Management and Programmatic Capacity • Capability to undertake and accomplish the proposed activities and positively strengthen the environment for economic policy reform • Demonstrate the organization’s effectiveness in terms of internal structure, technical capacity, and key personnel, in meeting economic development goals • Demonstrate adequate financial management capability • Sustainability and Financial Self-Reliance • Extent to which the funded activity will result in building and strengthening the capacity of the community and local organizations

  22. Solid Plan - Cost • Cost Efficiency • Degree to which budgeting is clear and reflects BEST USE of organization and grant resources • Cost-Share • Any applicant to be supported under the project is expected to contribute a cost-share towards the implementation of the activity, approximately 10%

  23. Cost Share Local contribution reflects commitment to the project by the targeted beneficiaries and local institutions • The grantee's contribution may be met through cost-sharing, co-funding (funding from other donors), program income, or some combination of the three • In-kind contributions such as office space, equipment, staff-time, etc., can be counted as cost-share and a reasonable and fair value • The fair value of voluntary labor and other in-kind contributions can also be considered as cost-sharing based on market information • Program income, gross income earned by ICI grantees that is directly generated by an activity sponsored by ICI or directly earned as a result of the grant, will be managed in accordance with USAID regulations

  24. Budget Considerations Phase 1: Concept Paper • Approximate cost of activity (cash, in-kind, and third-party sources) • Source of funding (self, third-party, ICI) • Cost should be reasonable and realistic Phase 2: Full Application • Complete budget form • Indicating salaries, other direct costs, travel & transportation, goods & materials, workshops & trainings, and program income, if applicable • Clear relationship between plan, milestones, costs

  25. Pre-award Responsibility Determination No grant shall be awarded unless the project makes a positive determination regarding the management, financial and administrative capacity of the organization

  26. Grant Agreement Type of grant agreement depends on: • Nature of the grant activity • Whether the applicant will be paid on a cost reimbursement basis, for milestones achieved, or will require advances of grant funding • Whether the applicant's administrative and financial systems are adequate to meet USAID accountability and reporting requirements • Value of the grant activity, as expressed in U.S. dollars

  27. Grant Agreement Review To ensure full understanding on the part of the grantee and ICI staff regarding how the implementation shall proceed and to ensure that the agreement accurately reflects this understanding,the Grants Team will discuss with the grantee: • Terms and Conditions of the agreement, including financial restrictions and requirements • Relevant USAID and other U.S. Government regulations including Mission Order 21 compliance • Relevant ICI grants procedures, including but not limited to those relating to mutual expectations during grant implementation

  28. Grantee Implementation • The grantee agrees to comply with all policies, procedures, and stipulations of the grant agreement • The grantee must give full cooperation to ICI staff in the oversight of the grant • The grantee will submit requests for funds and liquidation reports on a periodic basis as specified in the grant agreement • Grantees are required to report data to feed into ICI’s Performance Monitoring Plan • The grantee is required to submit to the project periodic narrative technical reports, financial reports, and monitoring and evaluation reports, as detailed in the grant agreement • Each grantee shall establish appropriate accounting and financial control systems for the grant

  29. Purchase of Non-Expendable Equipment • ICI will normally purchase equipment directly from suppliers or will assist the grantee in the procurement process • Equipment purchased by grantee must have a shelf life of less than one year and cost less than $5,000 • In-kind procurements for equipment with a shelf life of less than one year and cost less than $5,000 can be purchased by ICI • Unless otherwise specified in the grant agreement, non-expendable equipment previously identified and budgeted in the grant do not require ICI’s approval prior to purchase.

  30. Purchase of Non-Expendable Equipment • Title will vest with the grantee and equipment must be maintained and used by the grantee for the purpose proposed • The grantee shall purchase insurance for all non-expendable equipment and materials (allowable cost) • If equipment stolen and was uninsured, the cost of replacing the stolen equipment may not be an allowable cost under the grant • Grantees operating in the West Bank and Gaza should be exempt from paying value added tax (VAT) on items purchased in the West Bank or Gaza

  31. Professional Services • All written agreements, such as contracts, purchase orders, fixed price services agreements, letters of agreement, and lease agreements must contain the required mandatory clauses listed in the Annexes

  32. Recap

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