The United Nations Capital Development Fund (UNCDF) has announced a call for proposals (CfPs) for the Transformative Food Security Finance (TFSF) Investment to support food security and nutrition in Bangladesh.
The facility is intended to offer access to affordable medium-term finance for agricultural value adding projects in all districts of Bangladesh through provision of grants, reimbursable grants, guarantee or loan to the Enterprises.
The Transformative Food Security Finance (TFSF) facility is inviting innovative proposals for commercially viable transformative food security investment projects focused on agro-processing, nutrition, climate adaptive agriculture, blue food production, food value chain, post-harvest management and technologies, marketing, distribution, storage, processing plants, digital technologies to handle agro-processing, and any other agricultural value addition projects.
Priority will be given to enterprises engaged in agricultural products value chain projects that create business opportunities and contribute to economic empowerment, particularly women and youth, contribute to development of local community and leverage the targeted beneficiaries for local development as well as to projects that aim at reducing environmental risks and ecological scarcities. Other innovative agricultural practices may also be considered.
Services offered by the transformative food security finance (TFSF) investment facility to project developers:
- Business Development Services-Support in development of expansion business proposal, technical and management training.
- Project preparation and development services- Targeted technical project development and financing support to project developers (e.g. enhanced project documentation, due diligence and financial structuring), Preparation of project investment documents, Provision of project technical assistance grants, credit enhancements/guarantees.
- Financial services – link developers to financial institutions and investors
- Monitoring and management of agreed activities
- Capital expenditure required must be at least 75% and above of the total project cost.
- Non- capital costs which are direct to the Project and necessary for carrying out the Project may be accepted up to 25%.
- The approximate investment/funding window to cover the project for each organization from BDT 42,50,000 to BDT 42,50,00,000 (US$50,000 to US$50,00000) based on the proposed project size and requirements
Geographical Coverage: The geographical coverage for the transformative food security finance (TFSF) investment facility is all over Bangladesh.
- Must be a legally registered organization/enterprise/business entity
- Having at least three years business experiences successfully
- Having a market feasibility study and product is market viable
- Successfully implemented investment project financed by Bank/financial institution
- Directly responsible for the preparation and management of the action with their partners and not acting as an intermediary
- Stable and have sufficient financial resources to ensure the continuity of their organization throughout the project
- Able to demonstrate their experience and capacity to manage activities corresponding in scale and complexity with those for which financial support is requested
- Can provide, either from its own resources or in combination with other shareholders, equity equal to at least 50-60% of the total cost of the project.
- Have demonstrable/verifiable ownership of title or right of beneficial use of assets on which the project will be carried out
- Does not use or tolerate forced or compulsory labor or child labor.
For more information, visit https://www.uncdf.org/article/7214/cfp-support-to-transformative-food-security-finance-tfsf-investment-in-bangladesh