Facility for Sustainable Entrepreneurship and Food Security (FDOV)

The FDOV facility is a program of the Dutch Ministry of Foreign Affairs. The facility aims at poverty alleviation, sustainable economic growth and self-reliance in the target countries, by supporting Public Private Partnerships (PPP). This means, cooperation between governmental organisations, private companies and non-governmental organisations (NGO’s).

With the FDOV-country list you can check whether your target country is included in the facility.

The project

Starting point is that the project, by initiating the PPP, leads to sustainable solutions for the identified problems in the target country. The project should be based on a clear intervention strategy, either a “business case” or a “theory of change”, for which the proposed PPP has an advantage. The business case should result in a financial sustainable business model. The Theory of Change should result in a strategy to deal with the problems.

Within the program, the two main themes are (1) food security and (2) sustainable private sector development. Within each theme, sub-themes are distinguished:

ThemesFood securityPrivate sector development
Sub-themes
  • Improved local and regional availability and access to healthy and affordable food.
  • More efficient markets and sustainable chain improvement in local and regional markets
  • Inclusive business cases with demonstrable impact on low income groups.
  • Improvement of female entrepreneurship.

For the theme food security, compared with the previous tender, more emphasis is on local and regional market instead of international market, on "climate-friendly" agricultural production and on nutrition sensitive interventions

In addition, for both themes, it is important that the proposals contribute to improving the structural conditions which are needed for scaling up the business case:

  • Improvement rules and regulations. 
  • increased know-how and skills of the target groups. 

The themes Financial, Institutional, Ecological, Technical and Social should be integrated in the project and are included when assessing the sustainability of the project. 

FDOV proposals have to be submitted either under the theme food security or under private sector development. FDOV proposals have to address to at least one of the sub-themes related to food security or private sector development. The focus for the theme food security is on the national- and regional market. Proposals for the 15 partner countries have to comply with with the analysis of the Dutch Embassy as included in the long term strategic planning. 

The partnership PPP

Participation in the facility is open to public institutions, businesses, NGOs and knowledge institutions. The Public Private Partnership (PPP) should at least comprise:

  • one private company and
  • one NGO or knowledge institution and
  • one public institution (The Dutch Ministry of Foreign Affairs).

At least one Dutch and one local partner should participate. Participation of local NGO's and SME is preferable. Multinationals can only participate if a SME with a turnover of less then € 500 million, participates.  The partnership is assessed on its capacity (expertise, track record, management, planning & monitoring & evaluation, and CSR-policy) and on the added value for the project.

Project financing; Subsidy and own contribution

The project costs should be minimum € 1.000.000 and can be maximum € 6.000.000 for a project duration of max. 7 years. Project costs that can be subsidised are;

  • Technical assistance, such as advisory costs, training, certification etc.
  • Hardware; capital goods used for production, with exception of existing buildings and land.

FDOV contributes (subsidises) at the most 50% of the financing for a project. This is supplementary to the financial contribution (50%) made by the partnership. This own contribution can be, besides own means, other subsidies, loans and gifts to or investments from third parties in project partners. Half of the own contribution, that is 25% of the total project costs, have to be provided by the private partner(s) in kind and in cashMinimum 10% of the total project costs should be contributed in cash by the private partner(s). 

Procedure

The procedure for developing and assessment of the project comprises 2 phases:

  • Phase 1: Informal phase: Intake meeting
    During this phase the project idea of the PPP partners, according a fixed format, is presented to RVO including among others the partners, the problems to address in the target country, the intervention strategy etc. The project idea is discussed with RVO, based on which the PPP partners can assess whether it makes sense to develop a complete proposal. In case a complete proposal is elaborated, then a cooperation agreement with the Ministry of Foreign Affairs has to be concluded. This agreement has to be included in the final proposal that is submitted in the second phase. 
  • Phase 2: Formal phase: Complete proposal
    After the proposal is submitted, first will be assessed whether the application is complete and meets the formal criteria and threshold criteria. After that the contents of the proposal is assessed (a) the partnership check and (b) the project check. Based on this a ranking of project proposals is made. For this phase, the formal term is maximum 22 weeks. 

Criteria

Proposals are assessed based on the following criteria:

  • Is the problem analyses clear and does it answer the local demand and needs?;
  • Is the intervention strategy clear?
  • What is the impact per euro subsidy?;
  • Business model; not commercial feasible during the project period, but enough cash flow?;
  • Results and impact in the chain?
  • Risk analyses available?.
  • Sustainable; financial, institutional, ecological, technical and social?.
  • Is it innovative for the target country;
  • Scale; one time impact or potentially a large beneficiary group;
  • The themes environment, climate, gender and good governance are integrated in the project?

Tender

The total available budget for 2014 is € 40 million, 26,5 million for the theme food security and 13,5 million for private sector development. The period for submitting is open until the 1st December 2014 at 3 o'clock local time.

For support in developing your ideas, please contact us.