Palladium Group Call for Expression of Interest (EOI) for Compost Production and Distribution

Palladium is a global leader in the design, development and delivery of Positive Impact - the intentional creation of enduring social and economic value. We work with foundations, investors, governments, corporations, communities and civil society to formulate strategies and implement solutions that generate lasting social, environmental and financial benefits.

Applications are invited for:

Title: Call for Expression of Interest (EOI): Commercialising Compost Production and Distribution in the Nigerian North East

Location: Nigeria
Project: Propcom Mai-Karfi
Grant for: SMEs interested in commercialising compost production and distribution in the Nigerian North East

Details

• Propcom Mai-karfi PM,  is a programme funded by the UK Department for International Development (DFID) and has been working in the NE, with a focus on increasing incomes for the poor in Northern Nigeria through enhanced employment opportunities and improved productivity in selected agricultural market systems in Northern Nigeria. Over the years, the programme has facilitated access to inputs and improved distribution channels through various interventions, the core objective being to increase productivity income for poor farmers.
• The programme is in its three-year extended period was awarded to Palladium to run from 2018 to the end of 2021. The extension delivers income increases for the rural poor in Northern Nigeria, facilitates market recovery and supports internally displaced persons to rebuild livelihoods in the North East (NE). It also pilots and scales Climate Smart Agriculture (CSA) business models to increase climate resilience of rural value chains and smallholder farmers. For more about Propcom, visit www.propcommaikarfi.org

Grant Programme Summary and Context

• A commissioned study by Propcom Mai-karfi which evaluated the characteristics of the soils found within the North East of Nigeria with special focus on the soil physical structures and fertility properties which are important for crop production indicated that the soils are indeed suitable for crop production but with certain limitations. These limitations basically relate to the nutrient contents and the general fertility of the soils with respect to N.P.K, soil structure and the soil organic carbon levels. These factors in most cases are suboptimal for required crop production thus, the need for fertiliser application to ensure economic yield.  It was also found that compared to chemical fertilisers, compost has a premium advantage in meeting crop nutrient requirements and soil structure over the long-run. This is based on its ability to not only improve the soil nutrient content but also the soil organic matter. It also enhances the water holding capacity and soil structure, which together contribute to high soil quality. Compost is very key to not only improving productivity for farmers, but also addressing issues of helping to mitigate GHG emissions and associated climate change and its resultant effects to the environment.
• The study also shows huge market potential and opportunities in compost production and use in the NE.  This opportunity was inadvertently opened by the Federal Government’s ban on “inorganic chemical fertiliser based on security concerns which limited access of fertiliser to farmers. However, compost has a few attributes which make it superior to chemical fertiliser, including restoring soil nutrients and increasing yield. The current estimated Total Available Market size by volume in the North East is estimated at 3.8 million Metric Tons (MT) and so far, less than 2% of that market is tapped due to absence of compost producers in the region. This presents a great investment opportunity for agribusinesses and other private sector players to leverage.
• In pursuant of PM’s abiding commitment to poverty alleviation through private sector partnerships and various interventions designed to increase productivity and income for poor farmers, PM is seeking agribusiness market players and  investors who are interested in commercialising compost production and distribution in the NE.  This grant is to support medium scale compost production to target product availability for the 2021 wet season.

Objective of the Grant Programme
The purpose of the grant is to support the establishment of medium scale compost production in the North aimed at facilitating access to organic fertiliser for farmers in that region. Access to compost in the NE is expected to address the following issues:

• Depleting nature of soil in the NE due to continuous use of chemical fertiliser.
• Poor access to inorganic fertilisers due to Federal Government (FG) present ban on chemical fertiliser in some NE States (Borno and in some LGAs of Yobe and Adamawa) resulting in untold hardship to farmers.
• Unavailability of organic compost at retail outlets in the NE due to low production in the region.

Purpose of the call:

• This call is to invite agribusiness players interested in commercialising compost production and distribution to the North East to submit EOIs demonstrating willingness and capacity to carry out a medium scale production plant for compost in the North East.

Required Qualifications
Eligibility:

Formal Eligibility criteria:
The applicant must be a legal entity registered in Nigeria and able to demonstrate a minimum of two years of revenue-generating operations certified by audited accounts. Entities eligible to apply include:

• Private sector agribusinesses.
• SMEs interested in new business opportunities.
• Research organisations and policy institutes/think tanks.
• Trade and industry associations.

Firms with specialty in inputs distribution, channel development and own brands are encouraged to apply

Procedural requirement:

• The applicant should be consisted of a single entity. The entity must be registered in Nigeria. Subcontracting may be permitted but needs to be clearly indicated in the application.
• Applicants are expected to co-finance the project (either in-kind contributions or monetary support) with at least 20% of total grant cost.
• Applicant who qualifies from this stage would proceed to the next stage to submit a full proposal and detailed budget for the project.

Due Diligence Requirement:
To be awarded a grant, an organisation must meet due diligence assessment requirements. These include, but are not limited to, the items below:

• Not have been the subject of any proceedings or other arrangements relating to bankruptcy, insolvency, or financial standing in the last 5 years
• Have fulfilled all obligations relating to the payment of income tax or sales tax or other tax contributions within the country

Senior Directors or Senior Managers have not been convicted of, or are not the subject of any criminal proceedings, including those relating to:

• Participation in a criminal organisation;
• Environmental crime;
• Illegal land transactions and acquisitions;
• Corruption including the offence of bribery;
• Fraud including theft;
• Professional misconduct; and
• Counter aid diversion (money laundering and financing of terrorist organisations)

Project Eligibility
To be eligible to receive a Propcom grant, the proposed project should:

• Meet the thematic / technical requirement of the grant as outlined above.
• Do no harm.
• Be capable of delivering at scale.
• Show they can deliver measurable social and/or environmental outcomes while maintaining commercial viability.
• Include proactive and inclusive measures for engaging with stakeholders and communities.
• Deliver positive impact for all partners and communities.
• Open MEL (Monitoring Evaluation and Learning) systems which can be scrutinised in respect to the use of the Grant Fund

Documentation to be submitted (EOI):

• Company profile with registered address, functional email, telephone numbers and point of contact for organisation.
• Evidence of applicant’s registration in Nigeria.
• A response describing the organisation’s current business and growth plans. Should not exceed 5 pages.
• Company’s audited accounts for the last two years.
• Two references from previous grantors.

Application Closing Date
5pm; 29th June, 2020.

How to Apply
Interested and qualified candidates should send their EOI by email with subject ‘Applicant organization name/ Compost Production EOI’ to: [email protected]

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Grants Team Contact Details
Should you have any questions relating to the application process, Grants Programme or anything related, please do not hesitate to contact us through [email protected]