*NEW DEADLINE FOR SUBMISSIONS: May 31 2024 23:59 EDT time*
Founded by the UN General Assembly resolution in 1966, the United Nations Capital Development Fund (UNCDF) is the United Nations’ flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyze capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.
UNCDF is present in Malawi and is active in promoting Inclusive Digital Economies and other market development initiatives. UNCDF will increase resilience in LDCs by supporting an energy transition agenda that emphasizes decentralized, renewable and clean energy projects and products that drive green growth. Net-zero emissions energy solutions that expand energy access and value addition are key elements of this approach. UNCDF promotes access to finance across energy value chains, from customer to enterprise to larger investments.
UNCDF helps fill the energy SME financing gap through the use of its financial instruments. It increasingly supports both solar and improved cooking business models with digital and other technologies to increase their bankability and reach excluded populations. By 2025, UNCDF aims to support investments that allow 6 million people in at least 10 countries to access and benefit from clean energy. UNCDF investments will also contribute to wider energy market development, with an increased focus on productive use and local economic resilience and with strong connections to other key sectors.
UNCDF in partnership with GIZ – Energising Development (EnDev) is to implement a Results Based Finance (RBF) facility and provide business development services (BDS) to energy service companies under the project – Putting Energy to Work!. The Putting Energy to Work (PEW) is a multi-donor action jointly co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ as a contribution to multi-donor initiative Energising Development (EnDev), which is also financed by the Netherlands Ministry of Foreign Affairs, the Norwegian Ministry of Foreign Affairs (NORAD), the German Federal Ministry for Economic Cooperation and Development, and the Swiss Agency for Development and Cooperation (SDC).
The scope of work involves working with up to 10 established energy service companies to promote, distribute and sell climate-friendly productive use of energy technologies and services, with an increased participation of women, youth and people with disabilities.
The Productive Use of Energy (PUE) technologies will benefit commercial, agricultural and other micro, small and medium enterprises in underserved areas to increase their productivity and performance. The RBF will predominantly target PUE technologies and appliances for irrigation, incubation, and cooling among others. Non-agriculture technologies such as lamps for fishing communities, PV-powered sewing machines for tailors, PV-powered hair clippers for barbers, and refrigeration for small convenience shops among others may be included in the overall portfolio.
Through a Results Based Finance (RBF) scheme, UNCDF will provide non-repayable grants against results achieved and verified to facilitate market penetration and deployment of PUE technologies and services in challenging markets. The Results Based Finance (RBF) scheme will be implemented hand in hand with the Business Development Services (BDS) facility to increase the adoption of PUE and Gender and Social Inclusion (GESI) inclusion in partnership with stakeholders and programmes with the same goals of Putting Energy to Work!.
The RBF Scheme will provide two broad categories of incentives to the energy service companies: Sales-based incentives and Milestones-based incentives, defined as follows:
Sales-based incentives: Lump-sum incentive paid per technology (power system and appliance or standalone system) sold to a Productive Use of Energy (PUE) customer. Two types of sales incentives are currently being considered:Base Incentive (BI): 50% of the Free on Board (FOB) price of the technology, payable for each system sold and verified by the GIZ EnDev Malawi team to comply with eligibility requirements. Gender Equality and Social Inclusion (GESI Incentive (GESIPlus or GESI+): 15% of the BI, payable for each system sold to an MSME that complies with GESI requirements.
Milestones-based incentives: Lump-sum incentive paid per milestone achieved by a provider of a PUE technology. However, GESI-relevant milestones must form an integral part of the milestone concept. The Sales and GESI incentive percentages and number of milestones might be adjusted after collecting more information from the call for applications. Examples of GESI milestones include but is not limited to developing and implementing of GESI responsive recruitment and training plan, career planning and promotion campaign, family-friendly workplace policies and offering GESI sensitivity training, GESI responsive marketing and awareness campaigns, and GESI integration in the M&E system. Other milestones will be agreed on and finalised based on the nature of the proposed project to ensure its success.
For these energy service companies, capacity will need to be enhanced. This will be done through a BDS facility.
***
Please submit your proposal trough this e-investment platform. Incomplete submissions or submissions using other templates or sent by other electronic or non electronic means will not be eligible.
For more information please download the following documents:
Instructions to RFA applicants
Low Value Performance-Based Payment Agreement template
A performance-based payment (PBP) grant implies that no advance payments will be made. Grants amounts that are contingent on the successful achievement of pre-determined milestones and targets. Achieving the milestone (s) and the target (s) will therefore trigger a grant payment. Grant payments will be reimbursements for funds spent by the grantees, according to the project implementation plan and pre-agreed milestones and targets. The Grantee will be responsible of providing a comprehensive and compliant financial report reporting all the financial transactions relating to the grant. The Grantee will need to keep supporting documents related to these transactions to justify all actual costs incurred.
For queries write to the following address: RFA.queries@uncdf.org with the following subject: 240418 - MWI - Putting Energy to Work! Promoting Productive use of energy in Malawi.
240418 - MWI - Putting Energy to Work! Promoting Productive use of energy in Malawi
*NEW DEADLINE FOR SUBMISSIONS: May 31 2024 23:59 EDT time*
Founded by the UN General Assembly resolution in 1966, the United Nations Capital Development Fund (UNCDF) is the United Nations’ flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyze capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.
UNCDF is present in Malawi and is active in promoting Inclusive Digital Economies and other market development initiatives. UNCDF will increase resilience in LDCs by supporting an energy transition agenda that emphasizes decentralized, renewable and clean energy projects and products that drive green growth. Net-zero emissions energy solutions that expand energy access and value addition are key elements of this approach. UNCDF promotes access to finance across energy value chains, from customer to enterprise to larger investments.
UNCDF helps fill the energy SME financing gap through the use of its financial instruments. It increasingly supports both solar and improved cooking business models with digital and other technologies to increase their bankability and reach excluded populations. By 2025, UNCDF aims to support investments that allow 6 million people in at least 10 countries to access and benefit from clean energy. UNCDF investments will also contribute to wider energy market development, with an increased focus on productive use and local economic resilience and with strong connections to other key sectors.
UNCDF in partnership with GIZ – Energising Development (EnDev) is to implement a Results Based Finance (RBF) facility and provide business development services (BDS) to energy service companies under the project – Putting Energy to Work!. The Putting Energy to Work (PEW) is a multi-donor action jointly co-funded by the European Union and the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ as a contribution to multi-donor initiative Energising Development (EnDev), which is also financed by the Netherlands Ministry of Foreign Affairs, the Norwegian Ministry of Foreign Affairs (NORAD), the German Federal Ministry for Economic Cooperation and Development, and the Swiss Agency for Development and Cooperation (SDC).
The scope of work involves working with up to 10 established energy service companies to promote, distribute and sell climate-friendly productive use of energy technologies and services, with an increased participation of women, youth and people with disabilities.
The Productive Use of Energy (PUE) technologies will benefit commercial, agricultural and other micro, small and medium enterprises in underserved areas to increase their productivity and performance. The RBF will predominantly target PUE technologies and appliances for irrigation, incubation, and cooling among others. Non-agriculture technologies such as lamps for fishing communities, PV-powered sewing machines for tailors, PV-powered hair clippers for barbers, and refrigeration for small convenience shops among others may be included in the overall portfolio.
Through a Results Based Finance (RBF) scheme, UNCDF will provide non-repayable grants against results achieved and verified to facilitate market penetration and deployment of PUE technologies and services in challenging markets. The Results Based Finance (RBF) scheme will be implemented hand in hand with the Business Development Services (BDS) facility to increase the adoption of PUE and Gender and Social Inclusion (GESI) inclusion in partnership with stakeholders and programmes with the same goals of Putting Energy to Work!.
The RBF Scheme will provide two broad categories of incentives to the energy service companies: Sales-based incentives and Milestones-based incentives, defined as follows:
Sales-based incentives: Lump-sum incentive paid per technology (power system and appliance or standalone system) sold to a Productive Use of Energy (PUE) customer. Two types of sales incentives are currently being considered:Base Incentive (BI): 50% of the Free on Board (FOB) price of the technology, payable for each system sold and verified by the GIZ EnDev Malawi team to comply with eligibility requirements. Gender Equality and Social Inclusion (GESI Incentive (GESIPlus or GESI+): 15% of the BI, payable for each system sold to an MSME that complies with GESI requirements.
Milestones-based incentives: Lump-sum incentive paid per milestone achieved by a provider of a PUE technology. However, GESI-relevant milestones must form an integral part of the milestone concept. The Sales and GESI incentive percentages and number of milestones might be adjusted after collecting more information from the call for applications. Examples of GESI milestones include but is not limited to developing and implementing of GESI responsive recruitment and training plan, career planning and promotion campaign, family-friendly workplace policies and offering GESI sensitivity training, GESI responsive marketing and awareness campaigns, and GESI integration in the M&E system. Other milestones will be agreed on and finalised based on the nature of the proposed project to ensure its success.
For these energy service companies, capacity will need to be enhanced. This will be done through a BDS facility.
***
Please submit your proposal trough this e-investment platform. Incomplete submissions or submissions using other templates or sent by other electronic or non electronic means will not be eligible.
For more information please download the following documents:
Instructions to RFA applicants
Low Value Performance-Based Payment Agreement template
A performance-based payment (PBP) grant implies that no advance payments will be made. Grants amounts that are contingent on the successful achievement of pre-determined milestones and targets. Achieving the milestone (s) and the target (s) will therefore trigger a grant payment. Grant payments will be reimbursements for funds spent by the grantees, according to the project implementation plan and pre-agreed milestones and targets. The Grantee will be responsible of providing a comprehensive and compliant financial report reporting all the financial transactions relating to the grant. The Grantee will need to keep supporting documents related to these transactions to justify all actual costs incurred.
For queries write to the following address: RFA.queries@uncdf.org with the following subject: 240418 - MWI - Putting Energy to Work! Promoting Productive use of energy in Malawi.