Presentation from Damodar Ghimire the HIMALI Grants Coordinator explaining the purposes of the agribusiness grants as well as the types of grants and the requirements for applicants. The grants are given out through the HIMALI project to help develop agribusiness activity in the mountains of Nepal.

1. AGRIBUSINESS GRANT
Damodar Ghimire
Grants Coordinator

2. Purpose
• For development of eligible mountain
agribusiness activity
• Increasing socially beneficial and
environmentally friendly economic growth
• Employment in mountain districts

3. Grant Type
• Level One Grant (cost ≤ $ 50,000)
Cost
≤$ 50,000
Grant (80%)
≤$40,000
Minimum Grant:
$2,500
Business Contribution (20%)
≤$10,000

4. Grant Type
• Level Two Grant (cost > $ 50,000)
Cost
>$ 50,000
Grant
$40,000 + 50%
of cost over
$50,000
Maximum Grant:
$2,50,000
Business Contribution
$10,000 + 50%
of cost over
$50,000

5. Grant Anlaysis
1.For equal to and less than US$ 50,000
80% Grant which is US$ 40,000
20% Business Contribution which is US$ 10,000
2. For equal greater than US$ 50,000 (let us assume
US$90,000)
2.1 For 50,000, 40000 (80%) Grant and 10000 (20%)
Business Contribution
2.2 For remaining 40000, 20000 (50%) Grant and 20000
(50%) Business Contribution

6. • Total Grant 60,000
• Business Contribution 30,000

7. Application Must be sent to:
• HIMALI District project Coordinator,
DADO/DLSO or
• HIMALI Project Director, Project Management
Unit

8. Role of Social mobilizer and AEC on
Agribusiness Grant
• Social mobilizer based on project district will help
identify and organize group and enterprises with
viable business potential
• District Agro-enterprise Specialist will help applicants
to prepare sound, viable and sustainable business
plans and HIMALI Grant Application
• Agro-enterprise Team Leader will visit district regularly
and provide guidance to applicants to prepare
business plans, facilitate links to buyer and market as
well as help identify sources of specialized input (such
as processing equipment, supplies etc) needed for
business plan

9. Eligible Applicants
• Legally registered farmer groups, cooperatives, and
community organization with business based on mountain
agricultural products
• Registered Community Forestry Group and Rangeland
Grazing Group
• Agribusiness firms registered under Nepal Company Act,
with formal contract or direct supply links with value chain
participants in high mountains.
• Individual business persons (legally registered with Tax
number) with at-least 5 employees in business located in
HIMALI Mountain districts
• Staff of MOAC, the HIMALI Project and its contracted
service providers, and their family members, are not legible

10. Eligible Agribusiness Activities and
Facilities
• Production, processing, value-adding, and
manufacture of finished mountain products;
• Collection, storage, grading, quality management,
packing for distribution and marketing;
• Agro-tourism including local-produced food services,
handicrafts, and agricultural and natural resource
experience-based tourism services products;
• Facilities for aggregating and exporting agro-products
from HIMALI mountain districts, and draft animal
services and way-station facilities;

11. Eligible Agribusiness Activities…
• Tracks, culverts, short road connections that are
essential for agribusiness development and that are
co-funded by the concerned farmer groups or
agribusiness (i.e. not general public tracks and
roads);
• Small-scale irrigation and water harvesting works
that are owned, managed and maintained by
registered farmer groups;
• Nurseries, planting and small civil works for
community forestry and rangeland business resource
development, including for timber, grazing and
MAPs.

12. Not Eligible for Grant
• Purchase and Lease of land
• Business operating and trading capital
• Speculative investment
• Study tours

13. Requirements for Grant Application
• Registration Legal Details
– Type of business structure
– Business Address
– Name of responsible person(s) and contact details
– Taxation file number
– Bank Account details
– Evidence of land ownership

14. Requirements…
• Business Plan
– Production Plan
• MANDATORY: environment management plan
– Marketing Plan
– Management Plan
• MANDATORY: plan for employment for local people, women and
DAGs and Community consultation
– Financial Plan
• MANDATORY: evidence of business premise land ownership, lease
or legal use right
• $2500-$10,000: Basic Cash Flow statement
• Exceeding $10,000: Profit and Loss Account, Balance Sheet,
Financial projection (for at least 5 years)
– Planned Business Development
– Environmental Management Plan
• Investment Cost and Financing Table

15. Assessment Process
• Business plans and Grant application will be considered by
an Independent Grant Assessment Committee (GAC)
• Assessment will be based on the viability, sustainability,
and impact of the Business plan, the quality and
thoroughness of the preparation and soundness of the
documentation and evidence provided
• Application for Grants above $10,000 must provide full
details and pass close scrutiny and assessment
• The Application may be approved, rejected, or the
Applicant my be requested to provide additional
information

16. Social mobilizer at the district
level help to identify potential
farmers or business enterprises
and help them to organize into
a group or groups.
Agro-Enterprise Centre at
the district level helps
group of
farmers/business
enterprises to prepare
business plans for grant
receiving.
Farmers/Business
Enterprise
Remaining installments
and final payment when
Project Director is satisfied
with fulfillment of Grant
Agreement
Initial Payment
Deposit in applicant's
Bank account
Grant
Agreement
Signing
Approval by
Project
Director
DPC
Initial Screening and
forwarding to Grant
Assessment Committee
(GAC)
GAC Meeting chaired by Project
Director and Grant Coordinator
as member secretary and
Business Development Expert,
Financial Management Expert
and Environmental and Social
and Safeguards Expert as
member review each
proposal/application and
recommends eligible
applications/proposals for
approval

17. Status
Districts
Total BP
Received
BP Reviewed
Accepted
Rejected
BP Being
Processed
Sankhuwasab
ha
Solukhumbu
16
9
8
1
7
20
33
33
17
22
9
1
5
5
9
7
1
10
21
27
2
5
1
5
1
4
Mustang
6
5
Dolpa
20
12
2
7
11
Jumla
48
43
7
11
30
Mugu
22
20
2
11
9
Humla
42
33
5
14
23
245
172
41
62
142
Dolakha
Rasuwa
Manang
Total

18. Status
BP Received
245
Reviewed
172
70%of BP Received
Total Accepted
41
24%of BP Reviewed
Total Rejected
60
36%of BP Reviewed

19. THANK YOU