Norwegian Agency for Development Cooperation (NORAD) Grants for Enterprise Development in Least Developing Countries 2018

Application Deadline: 6th April 2018

Eligible Countries:

• Funding will be prioritized for 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.

About the Award: 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 of 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.

Type: Grants

Eligibility: 

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

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”. See ethical guidelines – Guide for Norad’s grant recipients. See also Declaration concerning ethical guidelines.
• 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.

Selection Criteria: 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.

Number of Awards: Not specified

Value of Award:

• The minimum grant size is NOK 500.000.
• 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.
• 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.

How to Apply: APPLY

Visit the Program Webpage for Details

Award Providers: Norwegian Agency for Development Cooperation (NORAD)

Important Notes: 

• 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.
• 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.