Green Fund call for project proposals

 

Introduction and background

 

The Department of Environmental Affairs’ (DEA) Green Fund in liaison with the Development of Bank of Southern Africa (DBSA) formally invites private sector together with research institutions, NGOs and other interested parties to apply for funding to implement innovative green economy projects or programmes in the waste sector.

Project proposals being submitted to the Green Fund should adhere to the following priority sectors:

Anaerobic digestion from organic waste: Development and construction of anaerobic digester facilities from organic waste. Priority will be accorded to the following:

  • Projects with a confirmed site for construction;
  • Project site locations to be in Northern Cape or Free State;
  • Projects where Environmental Authorizations are in place;
  • Projects with existing offtake agreements in place (decentralized and/or Grid connected); and
  • Projects with existing feedstock agreements in place.

Sludge from Waste Water Treatment plants: Development and construction of anaerobic digestion facilities to generate gas, combined heat and power and/or fertilizer from sludge. Priority will be accorded to the Northern Cape and Eastern Cape provinces. Feasibility studies supporting project viability must be in place.

Material Recovery Facilities:  Proposals for the development and construction of Material Recovery Facilities (MRFs) are requested.

Priority will be accorded to the following:

  • Projects with confirmed sites for construction;
  • Project site locations to be in Northern Cape or Limpopo provinces; and
  • Basic assessment report and all relevant environmental authorizations should be in place where applicable.

 

Eligibility criteria and legal documents

Eligibility criteria

Each application will undergo an initial screening to assess suitability in terms of the Green Fund objectives. All applications will be subjected to the following criteria which they must meet:

  1. Sector or Strategic Fit:
    Project is within the priority sectors considered by the Green Fund and specifically the following thematic areas:
  • Anaerobic digestion from organic waste
  • Waste to energy from Waste Water Treatment plants
  • Sludge from Waste Water Treatment plants
  • Material Recovery Facilities

Constitutional documents

At the time of application, applicants need to ensure the following (where applicable):

  1. Registered legal entity or  identifiable natural persons (evidence to  be attached).
  2. Established bank account at a registered South African financial institution (evidence to be uploaded).
  3. Current Tax clearance certificate (evidence to be attached).
  4. No adverse audit findings or disclaimer of audit opinion in the last two years.
  5. Not barred from participating in government procurement.
  6. Not credit blacklisted through a default judgment or an un-rehabilitated insolvent.

 

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Application procedure
 

All interested applicants should complete the online application form and provide the required documentation. Include all relevant forms and documentation as requested per online application form.

Table 1 below includes the required information and instructions on how to complete the online application process. Applicants are strongly recommended to read this guide prior to completing the application.
 

Table1: Required Information

STEP 1: CONTACT DETAILS
Name of applicant/ developer and address details Include the name and address of your organisation town,city,province)
Type of organisation

Choose from drop down menu

  1. Public entity
  2. Privateentity as party to aPPP (AMandate LetterorContract between public and private entities must be attached hereto)
  3. Municipal Entity
  4. Other (specify)

Organisation’s registration number

Include your organisations registration number. This can include, for example, company registration number.

Main contact Provide the contact details (name, job title,email, cellphone,land line and fax) of the person applying on behalf of the organisation.
Contact details of the organisation

Provide landline telephone, e-mail, facsimile, website, physical address, postal address and website.Please note that this email address will be used for all future correspondence.

STEP 2: PROJECT INFORMATION
Project title Include the title of your project.
Project description

Describe the project in not more than 500 words. The project description should include details on what is to be constructed / built and how, the problem the project will address as well as a project plan that describes the activities that will be undertaken and the duration of the project.The projectdescription shouldalso include theproject location

Sector

Choose from the drop down menu one of the following:

  1. Anaerobicdigestionfrom organicwaste
  2. Wastetoenergyfrom WasteWaterTreatmentplants
  3. Sludge from WasteWaterTreatment plants
  4. Material RecoveryFacilities

Project objective

Describe the objective in not more than 50 words. Project objectives are statements that describe but are not limited to the following:

  • The intended achievements such as outcomes (notoutputs) on the Green Fund in the short, medium and long term.
  • The intended achievements such as outcomes (not outputs) on the Green Fund in the short, medium and long term.
  • How the project will address the needs of the communities and target beneficiary groups?
  • How different the situation will be as a result of the project?
  • Whether the project is supported by all stakeholders affected and in what way, are the objectives and outcomes measurable.
  • Critical success factors.
Proposed Project structure

Present the structure in a diagram format and also provide a short description in not more than 200 words.

Geographical coverage Select province from drop down menu
Current Project Stage

Choose from drop down menu

  • Development
  • Construction
  • Development, construction and commissioning.

EnablingEnvironment Activities

Please attach supporting information for the applicable stage of your project. Project feasibility and project information memorandum / business plan documents should include detailed information on the following information:

General information: (project name, location– town/city and province, country, project background, rationale, objectives,) contextual economic and market assessment.)

Project description: (project activities/ business in the context of the Green Fund, total project cost, indicate project status –whether existing or new, etc.)

Institutional information: (governance structures, human resources, manpower requirements, stakeholder relations, management (capacity development and institutional strengthening, etc.)

Total project cost and financing plan: Capex, Opex, breakdown of sources of co-funding available, debt and equity structure

Statement of development impact (goals/ objectives, impact – local, beneficiaries / community, national).

Technical information (technology to be applied, alternatives, designs, supporting infrastructure, local content, logistics)

Feedstock supply agreement (price, volumes, period of availability, seasonality, alternative options, etc.)

Offtake agreement (price / tariff, duration / validity, adjustments / penalties, etc.)

Lease agreement / land rights / land ownership (include site maps)

Legal information (corporate structure/ legal entity under which the project will be operating, corporate documentation ,property and intellectual property ownership, litigation and outstanding clearances, material contracts and agreements, non-disclosures)

Development impact

The project’s expected development impact can be determined by (but not limited to) the following:

  • Sufficient demand for the project (e.g. infrastructure or service) and the extent to which the project meets this demand and / or is the demand for the project clearly defined in the authorities’ development plan?
  • Linkage between the project and the existing infrastructure, including resources
  • Project’s potential economic viability and affordability in terms of willingness and ability of consumers/ institutions to pay for the service.
  • Additionality: value added activities within the market chain and/ or improved quality of life,
  • primary and secondary long term economic effects of the development intervention, directly and indirectly, intended or unintended
  • potential economic development impact and downstream economic activity stimulated by the project, including economic growth and job creation within the economy
  • impact of the project on the needs of the poor and vulnerable people
STEP 3: PROJECT FUNDING
Project investment requirements

Indicate at a high level the total investment requirements for the project and provide a breakdown of the following:

  • Capex
  • Opex
  • Co-funding (own funds and third party funding, other and specify)
STEP 4: FULL PROJECT BACKGROUND
TECHNICAL

(Provide support information up to a maximum of 500 words. Detailed support information should be uploaded under step 5 of the application).

The information should address (but is not limited to) the following issues:

  • Design clarify and its conceptual and practical approach.
  • Methodology and its ability to mobilise appropriate and and the relevant kind of expertise.
  • Role clarity and responsibilities among the project partners and team members
  • Work plan; appropriateness and realistic with regard to the project goals.
  • Project location highlighting any particular challenges (social/environmental/access to infrastructure).
  • Dependency of the project on other projects.
  • Type of technology to be used by the project; conventional or untested.
  • Other favourable alternative solutions that meet the objective of this project (maintenance, rehabilitation of existing infrastructure etc.).

(Describe the financial position of the proposed project up to a maximum of 500 words. Detailed support information should be uploaded under step 5 of the application).

The information should address / include (but is not limited to) the following:

  • Total investment value of the project (Capex and opex)
  • Financing plan (debt: equity structure and sources of finance)
  • Confirmed cofunding available (own funding and third party funding), and this will be an added advantage.
  • Detailed budget for the project with clearly defined milestones.
  • Itemised scope of work aligned to the budget.
  • Affordability/ sustainability of the project.
  • Expected tariffs / sources of revenue for debt repayment
  • Estimated capital costs.
  • Any financial analysis undertaken for the project (ideally a financial model).
ECONOMIC

Describe the economic impacts and benefits of the proposed project up to a maximum of 500 words. Detailed support information should be uploaded under step 5 of the application).

The information should include(but is not limited to):

  • Available and sufficient demand for the project (e.g. infrastructure or service) and will  the project address this demand and/or is the demand for the project clearly defined in the authorities’ development plan.
  • Available and sufficient feedstock for the duration of the project or other alternative sustainable options
  • Project adds value addition in terms of unlocking economic potential and improvement of user benefits (e.g. are there secondary impacts and/or economic efficiency gains).
  • Micro-economic analysis: (describe the return on investment, payback etc., liquidity analysis and sensitivity analysis using some relevant variables etc.)
  • Macro-economic analysis (Describe the fundability of the project, economic impact during and post implementation, possible off-takers, power purchase agreements and market risk etc.)
  • Ability of the project to improve the conditions of life by addressing poverty and unemployment.
INSTITUTIONAL

Describe the economic impacts and benefits of the proposed project up to a maximum of 500 words. Detailed support information should be uploaded under step 5 of the application).

The information should include(but is not limited to):

  • Available and sufficient demand for the project (e.g. infrastructure or service) and will  the project address this demand and/or is the demand for the project clearly defined in the authorities’ development plan.
  • Available and sufficient feedstock for the duration of the project or other alternative sustainable options
  • Project adds value addition in terms of unlocking economic potential and improvement of user benefits (e.g. are there secondary impacts and/or economic efficiency gains).
  • Micro-economic analysis: (describe the return on investment, payback etc., liquidity analysis and sensitivity analysis using some relevant variables etc.)
  • Macro-economic analysis (Describe the fundability of the project, economic impact during and post implementation, possible off-takers, power purchase agreements and market risk etc.)
  • Ability of the project to improve the conditions of life by addressing poverty and unemployment.
ENVIRONMENTAL

Describe the environmental impacts and benefits of the proposed project up to a maximum of 500 words). Detailed support information should be uploaded under step 5 of the application).

The information should address (but is not limited to) the following:

Legislative and regulatory requirements

Please indicate which key environmental legislation (e.g. the National Environmental Management (NEMA) Act, the National Water Act, the Air Quality Act, NEM Waste Management Act, NEM Biodiversity Act, etc.) will be applicable to the project and if permits/ licences/ approvals have been obtained in terms of the applicable legislation.

Institutional capacity for environmental management

Please indicate your organisation’s capacity, skills and experience to implement the project in an environmentally responsible manner. This refers to project planning, implementation, (including construction) project operation as well as undertaking monitoring tasks as may be required by various environmental laws. Highlight where your organisation may lack the required skills.

Mitigation of negative impacts

Please describe the most important negative impacts that your project may have on the natural resources in the area where it will be implemented. Indicate what mitigation measures will be put in place to minimise these negative impacts.

Enhancement of positive impacts

Please describe the most important positive impacts that your project will have on the natural resources of the area. Describe what measures you will put in place to enhance the positive impacts towards the green economy transition pathway by indicating how the project will contribute to the Green Fund / climate change goals of:

  • Innovation
  • Sustainability
  • Building an evidence base for the expansion of the green economy
  • Additionality (would the project have happened without the Green Fund support – motivate)
  • Catalyzing the green economy
  • Replication
  • Green jobs creation
  • Carbon emissions avoided
STEP 5: SUPPORTING DOCUMENTS

Please upload supporting documentation (where applicable) related to the project such as (but not limited to) the following:

  • The letter of application signed by the appropriate authorized signatory of the organisation.
  • Approved site plans (it is recommended that these be included in the project documents).
  • Project information memorandum / feasibility study
  • Comprehensive project implementation programme / plan.
  • Project financing strategy (including potential sources of financing and equity etc. Letters of commitment would be important).
  • Project budget and financial model.
  • Environmental impact assessment approvals and authorizations.
  • Project team organogram.
  • Letter of support from Municipal Manager or other applicable authority

Documents will have to be in one of the following formats: pdf, doc, txt, ppt, rtf, docx, xls, xlsx, pptx and should not exceed 10 MB in size.

 

 

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Evaluation of applications and exclusion criteria

Evaluation of applications

Proposals which fulfil the criteria indicated above will be assessed according to the criteria listed below. Please note that the evaluation criteria will be adjusted according to the development and implementation phase of the project and the financial product applied for.

In brief the process described below will be followed by the Green Fund.

  • Step 1:  The proposals will be received and reviewed by the Green Fund against the eligibility criteria and checked to ensure that the documents are complete and that all necessary information is included.
  • Step 2:  Eligible and complete applications will either be approved for due diligence or rejected by the Green Fund Management Committee. Applicants are updated on the outcome of the process.
  • Step 3:  Project proposals accepted from step 2 will undergo due diligence with a final recommendation and funding proposal to the Green Fund Management Committee for approval or rejection. This process may require additional detailed information from the applicant.
  • Step 4:  Once approved by the Green Fund Management Committee, the applicant will be informed of the final decision.

Exclusion criteria

Applicants will be excluded from participating in the call for proposals procedure if they are in any of the following situations:

  • They are bankrupt or undergoing liquidation, are having their affairs administered by the courts, have entered into an arrangement with creditors,  have  suspended  business  activities,  are  the  subject  of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;
  • They or persons having powers of representation, decision making or control over them have been convicted of an offence concerning their professional conduct by a judgment of a competent authority in South Africa;
  • They or persons having powers of representation, decision making or control over them have been the subject of a judgment for fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity, where such an illegal activity is detrimental to the country's financial interests.
  • Preference will be given to applicants / developers who have not previously benefited from the Green Fund.

 

Validity of applications and reservations

Validity of applications 
 

The RFP Guidelines will be available for download from 12h00 on 07 March 2018 until 12h00 on 05 April 2018 at www.sagreenfund.org.za.

Proposals shall remain valid for 180 (one hundred and eighty) days from 5 April 2018. There will be no briefing session.

Interested parties are advised that applications must be submitted in accordance with the Request for Proposals ("RFP") Guidelines available on www.sagreenfund.org.za and proposals should not exceed 10 MB in size.

 

Reservations 
 

The Green Fund Management Committee reserves the right:

  • To reject all or any of the proposals;
  • To waiver any or all irregularities in the proposals submitted;
  • To retain the right not to select any application(s) even if meeting all the requirements.

 

Download documents

 

Enquiries 
 

Enquiries  can  be  sent  to:   enquiries@sagreenfund.org.za,  and  the  appropriate reference number should be quoted in all correspondence.