Activity Appraisal Document ODA below

Transcription

1 Activity Appraisal Document ODA below Dutch contribution under / Increase commitment up to 25% of the original amount I REQUESTED DICISION CONCERNS Explanation of policy and other data can be found in the glossary attached to this document by clicking on the hyperlink. Activity number Name of activity Brief description Budget holder PLENTY50: a new approach to growing young plants locally in closed controlled environments UFF wishes to introduce to the SA market a concept developed by PLENTY50: a new approach to growing young plants locally in closed controlled environments: environments UFF calls plant paradise. By introducing this new system in South Africa, UFF aims to supply local farmers with better quality, vital and pesticide free young plants, available yearround. PRE Date of receipt of application 11 March 2015 (final application received on 3 Nov 2015) Implementing organisation(s) Legal relationship Commitment in foreign currency (if applicable) UFF Agri Asset management Ltd Contribution ZAR 3,380,281 Corporate rate 0,071 Commitment in euros EURO ,96 SBE 0610S32 Activity start date 1 October 2015 Activity end date 31 July 2017 Contract start date 1 October 2015 Contract end date 31 July 2016 Aid modality Donor role Technical assistance Beneficiary s country/region Other aid Lead or active donor 10<TA<25 Between 10% and 25% of the activity budget South Africa Countries within the region (if applicable) South Africa Location within the country (be as specific as possible) Province Name of location(s) Western Cape CRS Code

2 Policy marker weight is principal Policy marker weight is significant Special pledges made by the Minister or State Secretary NwTech MrktOntw PrivSct MrktToe N.A. 2

3 II. APPRAISAL OF THE ACTIVITY 2.1 Contribution made by the activity to BZ policy objectives (policy relevance) General The budget holder has drawn up MIB in the context of the annual planning cycle Description policy relevance The MIB describes the transition from an aid to trade relationship for which the Transition facility can be used. One of the priorities for the Netherlands in South Africa as described in the MIB is the active promotion and strengthening of Dutch trade and investments, especially with a focus on our key sectors: health, energy, water, transport & logistics and agri/horticulture. Transition Facility aims to 1) improve the local business climate and 2), increase (sustainable) trade, investments and services by Dutch companies with South Africa. Please find a motivation below: 1) The project promotes employment, not only for the operation of the equipment and the imported technology, but also for suppliers of parts and maintenance, customers of crops and operators in the logistic chain. Secondly, the implementation of the containers will improve the competition position of the small black farmers in South Africa. It will increase their yield and therefore it creates opportunities for them to grow. Thirdly the project partners will endeavour to achieve a successful follow-up to the project. This follow-up consists of an investments of ZAR 90 mln (6,4 mln EUR) within two years after the project, to achieve a total annual turnover of EUR 2,4 mln and to provide employment to 75 full-time employees in the second year following the project. 2) Upon successful completion of the project, a number of follow-up activities are foreseen, which will increase of (sustainable) trade, investments and services by Dutch companies with South Africa: a) A follow-up investment of preliminary estimated at approximately ZAR 90 mln will be made, of which the larger part is to be contracted to the Dutch project partners. b) This investment in a 3,200 sqm PPU in the Western-Cape province is based on Dutch technology for controlled crop production. Plenty50 will become active in knowledge and technology supply in controlled growing environments in South Africa. c) Import of Dutch equipment and technology for PPUs, and setting up of the maintenance and service organization. Implementation of the organization for controlled crop production, including implementation into existing storage and distribution channels Appraisal policy relevance Appraise the policy relevance of the project, using the appraisal table. If the maximum score is not achieved, explain why. If certain criteria do not apply, please indicate this. Nr. Criteria policy relevance YES/NO/N.A. Apllicable to all budget holders The activity ties in with the operational objectives in the Explanatory Memorandum and the related policy memorandum (policy theory and intervention logic). YES The activity ties in with the ODA result areas and spearheads. YES 3

4 2.1.3 The proposed activity/intervention is relevant to the crosscutting themes of women s rights and gender equality / climate / PSD / coherence and strengthening of civil society organisations. YES Only if applicable to the budget holder The activity / intervention ties in with the annual plan. YES The activity/ intervention ties in with the result chain of the MIB/ MASP. YES Only for activities to which specific policy criteria are applicable The activity/ intervention ties in with the policy objectives of the policy instrument. YES 2.2 Objectives The long-term objective of the project is to roll-out a commercial model in South Africa, not only with the rootstock and scion for grapes, but also other deciduous fruits, citrus and vegetables will be produced. The results of the proposed interventions are as follows; 1) to solve all questions in order to be able to take an investment decision on the establishment of the first PPUs of 3,200 sqm and commence the production of rootstock and scion; 2) to set up a user group of 10 emerging farmers who will receive technical assistance to generate the best results from the young plants and demonstrate how strong food crops can be grown from the rootstock and scion developed with the Plenty50 technology; 3) to fulfil the need for quality young plants for African farmers through high-tech agriculture assistance in a closed controlled environment. The proposed project is the key-driver for the further roll-out of the commercial model and so is expected to contribute to the objective. The starting activity is to introduce this new technology via two (mobile) demo containers in the Western Cape. This area embodies both the Western and the African way of thinking and working in a professional environment. The two demo-containers must demonstrate the power of secure and strong and healthy young plants. The farmers will get instruction how the containers work and what the effect will be on their yields. The intervention will connect traditional farmers with stateof-the-art high-tech-farming. These activities are expected to lead to the results mentioned above. At the end of the project, both project partners and principal will discuss how the containers will be applied after finalization of the project, and in line with the agreed goals of this project. The objectives are in accordance with the SMART method. They are specific objectives since it is clear what the proposed intervention must lead to. The objectives are measurable by establishing whether a group of 10 emerging farmers have been producing with the Plenty50 technology and whether all questions have been solved to take an investment decision on the first PPUs. The objectives are acceptable for the target group since it will improve their economic position. The goals are realistic since the target has been based on UFF s experience with training and working with emerging farmers and the objective is time-related to the end of the contract period. The PPUs will be established in a large warehouse in the Western Cape. The envisaged investment is ZAR 90 million (6,4 million EUR). 4

5 V. IMPLEMENTATION 5.1 Budget Attached Notes with the budget: Local production vs production in NL > Although two high cube 40 ft sea containers will be used, it should be noted that all equipment inside the container air treatment, LED lighting, water treatment, cooling system will be built tailor made by Priva in De Lier, The Netherlands. The ventilation and air conditioning will be built tailor made for this purpose, crop growing in a closed and controlled environment. This requires a.o. a specified air flow and air cleanliness in the container. UFF and its partners have considered local production of the containers in South-Africa. However, it is of utmost importance to control the quality of the assembly works, and it is therefore decided to finish the containers in The Netherlands. Temporary import permit > All related costs, like transportation costs, import duties and insurance charges, have been included in the project budget. These cost items have been calculated on the basis of temporary import for 2 years. This approach has been chosen to ensure the required flexibility to move the containers to another place in Southern Africa, if appropriate. The temporary import permit can easily be extended during the project. Related costs for project permit extension or additional transportation costs will be covered by the project partners. ZAR Monitoring Narrative and financial reports Within six months of the end of the activity, the other party must account for the use made of the contribution in a well-documented final report, comprising a narrative report describing the results achieved and how they compare with the objectives formulated at the start of the activity and any subsequent approved changes, together with a final financial report in the form of a financial statement. One month before the end of the contract, the other party must submit a proposal on how the containers will be used after finalisation of the project, in line with the agreed goals of this project. The Ministry must agree with this proposal in writing..in the case of additional requirements: specify what conditions must be set (e.g. greater frequency, criteria relating to content, etc.). Also indicate if there is some other means of oversight of activity implementation (e.g. via Board of Donors) Annual plans and other reports 5

6 An annual plan is not necessary because the activity runs for the duration of 10 months IATI International Aid Transparency initiative N.A Monitoring calendar Set out the reporting requirements in the table below, to ensure they are accurately incorporated in the contribution agreement. Report type Field visit Any specific requirements* Period Submission by Final narrative** 1 October July 2016 Final financial 1 October July 2016 Auditor s report 31 December December 2016 Others to be included Proposal for container usage after 31 July July 2016 onwards 30 June 2016 Evaluation report: Describing if final completion results are as indicated in project proposal have been achieved 1 October December March 2018 * Narrative: reports on the contributions by third parties (inputs), outputs, outcome, sustainability and the spending of the Dutch contribution in accordance with the latest approved budget. If a financial report is submitted separately, please insert a line. ** See also the results given in section 5.3.1; if any additional criteria are desirable, insert them here. 6