Deadline 6th April 2018
Owner : Norad
Responsible unit : Section for Private Sector Development
General information about the grant scheme

Enterprise Development for Jobs aims to contribute to job creation in developing countries by stimulating the establishment of new business enterprises or expansion of existing ones.

The ultimate beneficiaries of the activities funded through the grant scheme are people in developing countries for whom new jobs are created.

The main objective for this call is to stimulate renewable energy projects that increase access to renewable energy and thereby contribute to job creation and poverty reduction.

The purpose of this call for proposals is to fund feasibility studies of renewable energy projects, pilot projects and training, that can start implementation during 2018 or 2019.

The grant scheme rules for Enterprise Development for Jobs set out important rules for the application process.

Objective and target group

Potential grant recipients are companies that can demonstrate ability to increase access to renewable energy, measured by net increase in production capacity (in MW).

Please note that support is given only to grid-connected power projects and off-grid projects that serve local communities, but not to projects for own power consumption.

Allocation criteria

The scheme does not provide investment support or loans but does provide grants to activities that contribute to early-phase project development and activities that limit commercial risk before investment decisions are taken.

Eligible activities include but are not limited to feasibility studies, partner search, pilot projects, training of local staff, and local infrastructure investments related to the company’s investment in energy production capacity.

Only projects in the following sector will be given priority under this call for proposals:

  • Energy, defined as renewable energy

Grants will not be given to private sector activities that produce weaponry or other military material, intoxicants such as alcoholic drinks and narcotics, or tobacco.

Applicants may submit a project outline for a long-term project, in which an initial estimate is made of the grant support needed for the various project stages. Funding for different stages may be triggered based on pre-defined milestones achieved.

The minimum grant size is NOK 500.000. Proposals will be assessed on a competitive basis. Norad will assess and select the best applications for grants based on a pre-defined set of criteria.

The budget should only include early phase activities/costs that are prior to an investment decision and should not include any parts of the actual main project. Grants are not given for marketing, sales, research and development, purchase of equipment and machinery, for the company’s normal operation.

Maximum funding rates for salaries to employees and consulting are respectively NOK 550 and NOK 1,000 per hour.

Travel between home country and project country is approved for economy class only. Travel within the country of origin or a third country must be justified.

Norad covers project expenses related to consulting and legal fees, as well as external experts’ work and travel costs. Fees for auditor review of the project reporting are also covered, as well as minor project-related costs such as mail, telephone, car rental, accommodation, etc.

Geographical scope

Funding will be prioritized to projects in the 7 countries: Ethiopia, Kenya, Mozambique, Myanmar, Nepal, Tanzania and Uganda.

Projects in other developing countries eligible for Norwegian development assistance may also be considered. Among these, projects in low-income countries will be given priority.

Requirements for applicants

  • The applicant must own a minimum of 25% of the planned investment (in cases where joint ventures are considered). Any exception to this rule must be based on special justification.
  • Grant recipients must have ethical guidelines for their business operations. These shall as a minimum meet the requirements of “Guidelines for the preparation of ethical guidelines for Norad grant recipients”.
  • The applicant shall confirm that it has undertaken adequate security assessments for the employees that will work in high-risk areas, hereunder any mitigating measures related to training, guidance material, insurance and equipment.
  • Projects supported under this scheme must comply with the EEA Agreement rules on state aid.

Risk management

All applicants must show how they plan to manage financial and non-financial risk. The risk management should include the most important risk factors that may impede results achievement. In addition, applicants shall identify significant risk factors that may have a negative impact on the four cross-cutting issues of Norwegian Development Assistance (human rights, women’s rights and equality, climate and the environment, and anti-corruption), and shall analyse and manage these risk factors throughout the project cycle.

The risk assessment shall be scaled to the significance of the project, including its scope and duration.
Norad expects the applicant to act in accordance with the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on responsible business conduct.

About the application process

Norad will assess and rank the applications based on the following criteria:

  • Likelihood of increasing access to renewable energy, measured by net increase in production capacity (in MW).
  • Geographical and sector-specific scope in accordance with applicable Norwegian priorities.
  • The project is commercially viable in the long term, but all or parts of the project would not have been realized without the grant (additionality).
  • To what extent the project is catalytic, i.e. triggering capital or other forms of engagement from the private sector.
  • The viability of the business plan and documented competencies and experience.
  • Cost efficiency of the grant-supported activities.
  • The extent of the applicant’s ownership and participation in the project.

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