Common use of Sub-grants Clause in Contracts

Sub-grants. 1. For purposes of Part B.1(a) of the Project, the Recipient shall recruit a Sub-grant Management Firm and establish the Sub-grant Review Committee, which shall include representatives of the NEA, Ministry of Agriculture, Ministry of Tourism, Ministry of Finance, MEPID, the PCU and representatives of the private sector, in a manner and with functions and resources satisfactory to the Association. 2. The Recipient shall make Sub-grants to eligible Beneficiaries under Part B.1(a) of the Project in accordance with eligibility criteria and procedures acceptable to the Association, which shall include the following: (a) a pre-screening by the Sub-grant Management Firm of the eligibility of the Beneficiary submitting Sub-grant proposals, having regard to eligibility criteria and procedures acceptable to the Association, which shall be specified in the Sub-grant Procedures Manual and shall include the following: each applicant must have been legally established under a structure created and legally operating and in good standing for a minimum of three years, and with a status allowing commercial activities; each applicant other than an MSME applicant must show its capacity to finance 50 percent of the proposed Sub-project; each MSME applicant must show its capacity to finance 20 percent of the proposed Sub-project; each applicant horticulture private operator under Part B.1(a)(i) of the Project must have: (A) an established track record in the horticulture industry; (B) demonstrated evidence of international marketing and distribution linkages; (C) experience in developing and managing out-grower schemes and/or in processing; and (D) the technical and financial capacity to make the Required Horticulture Investments and/or the Required Horticulture Processing Investments; each applicant service provider under Part B.1(a)(ii) of the Project in the groundnut sector must have: (A) an established track record in the groundnut sector; and (B) demonstrated satisfactory performance and capability to provide technical support services to the groundnut farmers; each applicant MSME under Part B.1(a)(iii) of the Project must be non public and not be more than 25 percent owned by a public entity; and each applicant commercial bank or micro-finance institution under Part B.1(a)(iv) of the Project must be non public and have: (A) a satisfactory performance track record in The Gambia; and (B) a proven commitment towards lending to MSMEs. (b) a review by the Sub-grant Review Committee of the Sub-grant proposal, on the basis of a detailed evaluation by the Sub-grant Management Firm, pursuant to eligibility criteria and procedures acceptable to the Association as further specified in the PIM which shall include the following: (i) the amount of the proposed Sub-grant to an eligible MSME under Part B.1(a)(iii) shall be no more than $20,000 equivalent per applicant, and no more than $35,000 equivalent to groups of MSMEs who submit a joint application; (ii) Matching Grants can only finance consultant’s services, Training, studies and marketing initiatives; (iii) no Matching Grant can finance the preparation of business plans for activities that could trigger the Association’s safeguard policies; and (iv) the proposed Sub-project complies with the requirements of the Social and Environmental Safeguard Frameworks, as confirmed by the NEA. 3. The Recipient shall make each Sub-grant under a Sub-grant Agreement with the respective Beneficiary on terms and conditions approved by the Association, which shall include the following: (a) The Sub-grant shall be on a grant basis. (b) The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Beneficiary to use the proceeds of the Sub-grant, or to obtain a refund of all or any part of the amount of the Sub-grant then withdrawn, upon the Beneficiary’s failure to perform any of its obligations under the Sub-grant Agreement; (ii) require each Beneficiary to: (A) carry out its Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including ensuring that the proceeds of the Financing will be used in accordance with the provisions of the Safeguards Instruments and the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient; (B) provide, promptly as needed, the resources required for the purpose, including the financing of: (1) 50 percent of the costs of the proposed Sub-project submitted under Part B.1(a)(i),(ii) or (iv) of the Project, for any Subproject, and (2) 20 percent of the costs of the proposed Sub-project submitted under Part B.1(a)(iii); (C) procure the goods, works and services to be financed out of the Sub-grant in accordance with the provisions of Section III of Schedule 2 to this Agreement; (D) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub-project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-project, its operation and any relevant records and documents; and (G) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; (iii) require each horticulture private operator Beneficiary under Part B.1(a)(i) of the Project to: (A) design, prepare and implement the Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable, with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including ensuring that such Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable, will fully comply with the provisions of the Safeguards Instruments; (B) provide, promptly as needed, the resources required for the purpose, including the financing of 100% percent of the costs of the part of the Sub-project that constitutes either the Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable ; (C) enable the Recipient and the Association to inspect the Sub-project, including Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable, their operation and any relevant records and documents; and (D) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; and (iv) disburse the Matching Grant to any horticulture private operator Beneficiary under Part B.1(a)(i) of the Project only in an amount equivalent to the amounts invested by such Beneficiary in the Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable. 4. The Recipient shall exercise its rights under each Sub-grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Sub-grant Agreement or any of its provisions.

Sub-grants. 1. For purposes of Part B.1(a) of the Project, the Recipient shall recruit a Sub-grant Management Firm and establish the Sub-grant Review Committee, which shall include representatives of the NEA, Ministry of Agriculture, Ministry of Tourism, Ministry of Finance, MEPID, the PCU and representatives of the private sector, in a manner and with functions and resources satisfactory to the Association. 2. The Recipient shall make Sub-grants to eligible Beneficiaries under Part B.1(a) of the Project in accordance with eligibility criteria and procedures acceptable to the Association, which shall include the following: (a) a pre-screening by the Sub-grant Management Firm of the eligibility of the Beneficiary submitting Sub-grant proposals, having regard to eligibility criteria and procedures acceptable to the Association, which shall be specified in the Sub-grant Procedures Manual and shall include the following: : (i) each applicant must have been legally established under a structure created and legally operating and in good standing for a minimum of three years, and with a status allowing commercial activities; ; (ii) each applicant other than an MSME applicant must show its capacity to finance 50 percent of the proposed Sub-project; ; (iii) each MSME applicant must show its capacity to finance 20 percent of the proposed Sub-project; ; (iv) each applicant horticulture private operator under Part B.1(a)(i) of the Project must have: (A) an established track record in the horticulture industry; (B) demonstrated evidence of international marketing and distribution linkages; (C) experience in developing and managing out-grower schemes and/or in processing; and (D) the technical and financial capacity to make the Required Horticulture Investments and/or the Required Horticulture Processing Investments; ; (v) each applicant service provider under Part B.1(a)(ii) of the Project in the groundnut sector must have: (A) an established track record in the groundnut sector; and (B) demonstrated satisfactory performance and capability to provide technical support services to the groundnut farmers; ; (vi) each applicant MSME under Part B.1(a)(iii) of the Project must be non public and not be more than 25 percent owned by a public entity; and and (vii) each applicant commercial bank or micro-finance institution under Part B.1(a)(iv) of the Project must be non public and have: : (A) a satisfactory performance track record in The Gambia; and and (B) a proven commitment towards lending to MSMEs. (b) a review by the Sub-grant Review Committee of the Sub-grant proposal, on the basis of a detailed evaluation by the Sub-grant Management Firm, pursuant to eligibility criteria and procedures acceptable to the Association as further specified in the PIM which shall include the following: (i) the amount of the proposed Sub-grant to an eligible MSME under Part B.1(a)(iii) shall be no more than $20,000 equivalent per applicant, and no more than $35,000 equivalent to groups of MSMEs who submit a joint application; (ii) Matching Grants can only finance consultant’s services, Training, studies and marketing initiatives; (iii) no Matching Grant can finance the preparation of business plans for activities that could trigger the Association’s safeguard policies; and (iv) the proposed Sub-project complies with the requirements of the Social and Environmental Safeguard Frameworks, as confirmed by the NEA. 3. The Recipient shall make each Sub-grant under a Sub-grant Agreement with the respective Beneficiary on terms and conditions approved by the Association, which shall include the following: (a) The Sub-grant shall be on a grant basis. (b) The Recipient shall obtain rights adequate to protect its interests and those of the Association, including the right to: (i) suspend or terminate the right of the Beneficiary to use the proceeds of the Sub-grant, or to obtain a refund of all or any part of the amount of the Sub-grant then withdrawn, upon the Beneficiary’s failure to perform any of its obligations under the Sub-grant Agreement; (ii) require each Beneficiary to: (A) carry out its Sub-project with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including ensuring that the proceeds of the Financing will be used in accordance with the provisions of the Safeguards Instruments and the Anti-Corruption Guidelines applicable to recipients of loan proceeds other than the Recipient; (B) provide, promptly as needed, the resources required for the purpose, including the financing of: (1) 50 percent of the costs of the proposed Sub-project submitted under Part B.1(a)(i),(ii) or (iv) of the Project, for any Subproject, and (2) 20 percent of the costs of the proposed Sub-project submitted under Part B.1(a)(iii); (C) procure the goods, works and services to be financed out of the Sub-grant in accordance with the provisions of Section III of Schedule 2 to this Agreement; (D) maintain policies and procedures adequate to enable it to monitor and evaluate in accordance with indicators acceptable to the Association, the progress of the Sub-project and the achievement of its objectives; (E) (1) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standards acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Sub-project; and (2) at the Association’s or the Recipient’s request, have such financial statements audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the statements as so audited to the Recipient and the Association; (F) enable the Recipient and the Association to inspect the Sub-Sub- project, its operation and any relevant records and documents; and (G) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; (iii) require each horticulture private operator Beneficiary under Part B.1(a)(i) of the Project to: (A) design, prepare and implement the Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable, with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Association, including ensuring that such Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable, will fully comply with the provisions of the Safeguards Instruments; (B) provide, promptly as needed, the resources required for the purpose, including the financing of 100% percent of the costs of the part of the Sub-project that constitutes either the Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable ; (C) enable the Recipient and the Association to inspect the Sub-project, including Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable, their operation and any relevant records and documents; and (D) prepare and furnish to the Recipient and the Association all such information as the Recipient or the Association shall reasonably request relating to the foregoing; and (iv) disburse the Matching Grant to any horticulture private operator Beneficiary under Part B.1(a)(i) of the Project only in an amount equivalent to the amounts invested by such Beneficiary in the Required Horticulture Investments or the Required Horticulture Processing Investments, as applicable. 4. The Recipient shall exercise its rights under each Sub-grant Agreement in such manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the Financing. Except as the Association shall otherwise agree, the Recipient shall not assign, amend, abrogate or waive any Sub-grant Agreement or any of its provisions.