During its regular meeting, the NSC will consider and agree on (i) the topic(s) for an upcoming REoI and (ii) related budget envelope. The NSC will request NEA to issue the REoI and manage the grant-making process as described below.
NEA will announce the REoI on its website, through social media and newspapers, inviting interested individuals, groups, and organizations to apply (see annex 6 for REoI template). The call (in Nepali and English) will contain the following information: scope of the grants (i.e., topics, thematic focus); eligibility criteria; individual grant size; documentation to be submitted (i.e. expression of interest, the profile of proponent); access to the template (see annex 7 for EoI template); submission deadline; and address (e-mail or physical address) where the EoI needs to be sent to. EoIs can be submitted either in Nepali or English language.

The REoI will be published on the NEA/DGM Nepal Project website. NEA will also conduct outreach activities to inform potential beneficiaries about the REoI the process and invite them to express interest.

The EoI consists of (i) the completed EoI template and (ii) the profile of the proponent. NEA will collect all EoIs and keep a simple electronic logbook on proponents, submission date, and screening results.

NEA will review the EoIs against the criteria listed below and any additional criteria identified in the REoI.

NEA will screen all EoIs using a standard set of criteria to ensure consistency. For each EoI, NEA will complete and save a checklist recording the screening results (see annex 8 for the EoI screening checklist). The EoI screening will be done according to the following criteria;

• Completeness of EoI submission (yes/no);
• Eligibility of proponent (yes/no);
• Submission by the deadline (yes/no);
• Relevance of the EoI related to the REoI (relevant/not relevant);
• Check of EoI whether the proposed idea is on Environment and Social Management Framework (ESMF) Negative List/exclusion List (yes/no)
• Profile of the potential beneficiary
• Environmental and Social Risks as per the ESMF

The EoI template also contains a section where applicants can indicate the need for training or capacity development for developing a full project proposal. For proponents with EoIs that passed the screening requirements, NEA will review the identified capacity development and training needs and offer workshops to address the identified needs (see sub-section (iv) for more detail).

The World Bank will review the cleared EoIs and issue a no-objection.

After the EoI screening has been completed, NEA will contact the potential beneficiaries who have passed the EoI screening and invite them to submit a full proposal (see annex 10). For EOIs that did not meet the screening criteria, NEA will inform the applicant by e-mail or regular mail no later than 5 days after the EoI screening process has been concluded.

Once NEA has identified the capacity development and training needs for project development at the EOI screening stage (sub-section (ii)), NEA will assist in targeted training and capacity building of the shortlisted applicants.

NEA will organize an orientation meeting on the following aspects:

• Introduction to the DGM Nepal project
• Proposal development, including results-framework
• Business plan (if applicable)
• Environmental and social risk management requirements
• Project and financial reporting

As needed, additional training and capacity-building events will be offered. NEA will determine whether the proponent needs follow-up action, including technical assistance, to write a full proposal.

A proponent is eligible to receive technical assistance if he/she meets the following criteria:

• Cleared EOI;
• For additional training beyond the orientation meeting, RRN has confirmed limited capacity to develop a full proposal, including a results framework and financial plan.

Proponents will be informed of the location of NEA’s field offices which can provide additional information and guidance on project proposal development.

The full project proposal (in English or Nepali) would need to be sent to NEA by e-mail or regular mail. The full project proposal needs to contain the following documents:

1. Cover letter
2. Project Proposal (see annex 10);
3. For business improvement or development proposals, a financial questionnaire needs to be submitted;
4. Co-financing letters (as applicable); and
5. Beneficiary profile (CV for individuals; profile for groups, organizations, and businesses)

Invited proponents must apply the deadline indicated in the proposal invitation letter from NEA.

Full project proposals received after the deadline will not be considered for that particular round, however, the proposal may be considered for selection in the next round if the proposal is consistent with the REoI topic or theme.

NEA will keep a log of all full project proposal received, including the proponent and submission date. NEA will send a short correspondence to the proponent acknowledging the receipt of the full project proposal.

NEA will review and assess the submissions according to the following criteria:

• Cleared EOI;
• Completeness of documentation;
• Fit of the proposed project with the REoI;
• Relevant professional background of the potential beneficiary
• Project proposal:
  
  • Innovation of the proposal;
  • Quality of presentation;
  • Technical design and feasibility;
  • Financing plan;
  • Sustainability;
  • Environmental and social risk management;
  • Additional information as required and indicated in the invitation letter; and
• Legitimacy of identified co-financing

NEA will use a review sheet (see annex 11 for template) and document all comments from the reviewer for the entire project proposal. As needed, the reviewer may reach out to a proponent to request further information and clarification on the proposal; and ask for a re-submission.

Based on the assessment of the full project proposals, NEA will develop a ranked shortlist consistent with the budget envelope agreed by the NSC. The shortlist should also present a reserve list that would list the three top-ranking proposals that are not short-listed.

For all short-listed proposals (incl. the proposals on the reserve list) within the established envelope, NEA will conduct field visits, as needed, to validate the proposal and work with the proponent to refine the proposal. NEA will also transfer knowledge to and train the proponents during field visits, workshops, or other on-demand capacity-building activities.

Once the shortlist has been finalized, NEA will inform and organize a meeting with NSC to review the shortlist and make a decision. The project will prioritize women applicants so as to ensure that at least 50% of grant recipients (or beneficiaries) are women with inclusion of excluded and marginalized IPLC community and preferences for people with disability (PWD). The scholarship may for both short term and long-term courses as the beneficiaries identified in all Nepal. Five business before to the NSC meeting, the NSC members and observers will receive from NEA a summary report on the REoIs with statistical information and the shortlist of proposals within the agreed envelope. The NSC members and observers may request access to the entire proposal.

The NSC members will decide on the shortlist (not individual projects) during the meeting. Before discussing the shortlist, NSC members with a potential conflict of interest (CoI) (i.e., proponent is a member of the entity the member represents), need to declare the CoI in front of the meeting. Since the NSC will approve the short-list but not the individual full project proposals, all members will be part of the decision. However, if a NSC member has a reservation with a proposal on the short-list, wishes to discuss the proposal in more detail, and ultimately removes the proposal from the short-list. If an NSC member has a CoI regarding the proposal in question, the member will not be part of the decision on the proposal in question. If a proposal is removed from the shortlist, the top-ranking proposal on the reserve list will be added to the shortlist.

The decision will be recorded in the NSC meeting minutes and posted on the DGM Nepal project website. NEA will inform the proponents of the approved proposals (now: beneficiaries) by e-mail or regular mail within 5 business days of the NSC decision. NEA will also inform proponents who were not shortlisted by e-mail or regular mail within 10 days of the NSC decision and the reason why the proposal was not short-listed.

The approved beneficiaries will sign grant agreements with NEA (see annex 12 for template), which specify the legal conditions for the project, including requirements for reporting.

Consistent with the NSC decision, NEA will inform the applicants of approved proposals and process a grant agreement for the sub-project. Negotiations may be possible as they relate to the fund release schedule. The grant agreement will include specific financial management requirements as follows:

• Grantee agrees to provide financial reports to RRN consisting of a comparison of actual expenditures to the approved budget and explain variances, if applicable. Financial reports are to be accompanied by acceptable evidence of expenditures.
• Grantee allows NEA's internal and external auditors access the financial records to determine whether funds were used for the intended purposes.
• Grantee agrees to provide reports on progress with the implementation of activities and achieving the intended results (against the agreed results framework) to accompany the financial report.

The draft of the agreement will be sent to the grantee for review. Once the grantee agrees with the Terms and Conditions, the grantee will sign at least 2 copies of the agreement. The two original copies will be signed by the beneficiary first and countersigned by the DGM Nepal Project Team Leader once it is returned. One copy of the signed agreement will be sent to the beneficiary for filing, and one will be retained by NEA for its records.

Once the grant agreement is signed by both parties, the fund transfer will be initiated consistent with the grant agreement. The fund transfer will be done on an installment basis, as mentioned in the grant agreement. The maximum amount for the first installment (usually upon signing the agreement) will be 30% of the total budget based on the agreed work plan and budget. The minimum amount for the last installment will be 10% of the total budget, and it will be made available upon submission and approval of the Final Financial Report and Final Narrative Report