Supporting Reform and Privatization of State-Owned Enterprises

Opportunity Background

The United States Agency for International Development (USAID) Economic Development, Governance and Enterprise Growth Project (EDGE), implemented by International Development Group Advisory Services, LLC (International Development Group LLC or IDG), is seeking applications from qualified applicants in Ukraine with the objective of building capacity of the civil society sector in ensuring fair and transparent privatization of state-owned assets, and supporting the Government of Ukraine’s (GOU) privatization communication strategy whereby the public will have access to real-time information and a clear understanding of the privatization process and its benefits for the Ukrainian society.

EDGE PROJECT GOAL

EDGE is a 3 to 5-year regional activity in Europe and Eurasia (E&E) that aims to create inclusive, sustainable economic growth and to support intra-regional and Euro-Atlantic integration. EDGE aims to generate synergies among USAID projects working in economic growth and bring together stakeholders across countries to work on mutual problems, giving the USAID E&E portfolio a regional dimension. The Development Objective (DO) of EDGE is Inclusive, sustainable economic growth supporting intraregional and Euro-Atlantic integration.

The primary objective of the support in Ukraine under the EDGE buy-in component is to support the reform and privatization of State-Owned Enterprises (SOE) with the overarching goal of reducing corruption and helping Ukraine achieve Euro-Atlantic integration. This RFA will support the following Results:

1. Building capacity of the civil society sector in ensuring a fair and transparent privatization of state-owned assets; and,
2. Supporting the implementation of the Privatization Communication Strategy whereby the public will have access to real-time information and a clear understanding of the privatization process and its benefits for the Ukrainian society.

Opportunity Structure

ILLUSTRATIVE ACTIVITIES TO BE FUNDED THROUGH THE GUC PROGRAM

This activity will provide funds to finance innovative approaches and applications that have the potential to generate sustained watchdog and monitoring activities resulting in improvements in the process of privatization of SOEs and putting the sold or leased assets into productive use. Enhancing private sectorled economic growth is the ultimate goal of the privatization process.

We recognize that COVID-19 might have some impact on the proposed activities, since it is uncertain how long the present situation will continue, and how it will evolve. During the co-creation process of the Full Application, EDGE can and will work in partnership with you to address associated issues and the potential impact of the pandemic on the performance of the grants and will help applicants to revise activities accordingly.

Areas of attention and illustrative activities for grants may include:

Result I: Building capacity of the civil society sector in ensuring fair and transparent privatization of state-owned assets

Result II: Supporting the implementation of the Privatization Communication Strategy whereby the public will have access to real-time information and a clear understanding of the privatization process and its benefits for the Ukrainian society.

Competitive Scope

ELIGIBLE APPLICANTS

The following legal entities registered in Ukraine are eligible to apply:

• Business Support Organizations (BSOs): chambers, clusters, associations, incubators, innovation centers that are locally registered
• Non-Governmental Organizations (NGOs) that are locally registered
• Private sector firms and consulting firms
• Public private partnerships
• Educational institutions and training centers; and
• Coalitions of these entities

MINIMUM ELIGIBILITY REQUIREMENTS

Regardless of the grantee or grant type, all GUCs will follow the grant award process.

Given that Grant applications might include multiple beneficiaries and/or implementers, the Grant Agreement will be signed with one organization/entity that will be responsible for management and oversight of the grant. The other beneficiaries and/or implementers will have to sign a Partnership statement confirming their roles, responsibilities and contribution to the grant. Minimum eligibility criteria are criteria with which an organization must comply in order for its grant application to be accepted for Grant Evaluation Committee (GEC) review. The minimum eligibility criteria are as follows:

1. Grantees must be one of the defined types of entities as listed in the Eligible Applicants section above.
2. Grantees must be in good standing with the respective country authority in Ukraine, and in compliance with all applicable civil and fiscal regulations
3. Grantees must display sound management in the form of financial, administrative, and technical policies and procedures that are in written format and present a system of internal controls that safeguard assets; Protect against fraud, waste, and abuse; and support the achievement of program goals and objectives. (An overview of grantee compliance requirements, as set forth in the U.S. government’s OMB Circulars A-110, A-122, and A-133.) https://www.usaid.gov/who-weare/agency-policy/external-reference-links/omb The grantee must also sign a Recipient Certificate of Compliance.
4. Sub-agreements are not permitted, i.e. the grantee must have full responsibility and accountability for grant activity implementation.
5. Prior to grant negotiation, all applicants must be vetted with USAID with regard to the U.S. Government’s prohibition of transactions with, and the provision of resources and support to individuals and organizations associated with terrorism.
6. Prior to grant negotiation, all applicants will undergo a Pre-Award Survey that is conducted:
   • To determine whether the organization has sufficient financial and managerial capacity to manage USAID funds in accordance with U.S. Government and USAID requirements,
   • To determine the most appropriate method of financing to use under the potential USAID award, and
   • To determine the degree of support and oversight necessary to ensure proper accountability of funds provided to the organization.
7. Grantees must also be willing and able to certify the following:
   • They have not and will not provide support to any individuals and organizations associated with terrorism, in accordance with the terms of the Certification Regarding Terrorist Financing.
   • They have not or will not use U.S. Government funds for lobbying a U.S. Government official according to the terms of the Certification Regarding Lobbying.

AWARD INFORMATION

Financial allocation under this RFA is up to US$ 235,000 to be awarded to up to two Grantees. Grant performance period will be 12 months. Grant awards will start o/a October 15, 2020, with the performance period of 12 months until o/a October 15, 2021.

Grant Specifications

All grants provided under EDGE must adhere to the following specifications:

• Maximum grant amount:
  • The total value of an individual grant to non-U.S. NGO is not limited.
• Maximum total grant period: Three (3) years (unless expressly approved by the GEC and USAID).
• Application and budget format: All grant applications and budgets must be submitted in the format provided. Applications and budgets written in a different format will not be considered. IDG is willing to assist potential grantees with their application documents (see Full Application template)
• Geographic area: The beneficiaries and the execution of the grant activities must take place in Ukraine.
• Cost share: Matching contributions to the funds requested from EDGE are highly encouraged and will be evaluated as an additional criterion to break ties among applications with equivalent scores after evaluation against all other criteria.