News article

Chile - Prosperity Fund: call for proposals for 2016

The 2016-17 bidding round was announced in December 2015. The call is closed and results will be announced before the end of March.

Prosperity Fund

The 2015 Strategic Defence and Security Review announced a £1.3bn Prosperity Fund over the next 5 years to promote the economic reform and development needed for growth in partner countries. Our priorities will include improving the business climate, competitiveness and operation of markets, energy and financial sector reform, and increasing the ability of partner countries to tackle corruption. As well as contributing to a reduction in poverty in recipient countries, we expect these reforms to create opportunities for international business including UK companies.

The role of the Fund is also set out in the UK aid strategy, Tackling Global Challenges in the National Interest.

Much of the Prosperity Fund will involve multi-year programmes. As part of the first year of the Fund, initial competitive bidding processes will be administered in a number of countries for project initiatives, where organisations are invited to submit bids to embassies and high commissions for individual projects in support of Fund objectives.

The Central Guidance for Implementers sets out the arrangements for the bidding process for these projects, including rules governing ODA expenditure under the Fund. Decisions on initial country allocations will be taken in early 2016.

Introduction to the Prosperity Fund in Chile

The UK Government’s Prosperity Fund seeks to create real, measurable outcomes. The Fund will operate in Chile from April 2016 until the end of December 2016, when Chile will graduate for eligibility for ODA (overseas development assistance) funding. Information will be provided in due course regarding the availability of funding for future years.

The fund in Chile will focus on the following five thematic areas:

  1. Mining
  2. Climate change and low carbon transition
  3. Smart cities/Infrastructure
  4. Financial Services
  5. Regulation & Competition

We would also welcome bids which seek to provide solutions to challenges shared by Chile and at least one other country in the region (particularly within the Pacific Alliance).

Priorities for 2016

The main priorities for the current call for bids are:

  1. Mining Focus on delivering policy/legislative guidance and innovation in the following areas:
    • Energy efficiency and water management
    • Environmental governance and community relations
    • Waste management (tailings) and related practices
    • Chile’s inclusion in the Extractive Industry Transparency Initiative (EITI)
    • Vocational training in mining and certifications
    • Mine remediation & closures
  2. Climate change and low carbon transition
    • Raising awareness and proactivity on the part of business and civil society on climate change issues post COP21
    • Support for the promotion of low carbon energy technologies (especially solar and marine) and related support, management and infrastructure
    • Support for the creation of policy, regulatory and legislative frameworks conducive to transition to a low carbon economy
    • Investigation and resolution of operational obstacles to renewable energy projects (community stakeholders, environmental permits/ regulations, project financing, etc.)
  3. Smart cities/Infrastructure
    • Support for the implementation of Public Private Partnerships (PPP) projects with focus on public services and infrastructure, especially health and transport
    • Support for the design of Smart City strategies and innovative Smart City solutions
    • Promotion of sustainable infrastructure and transport
    • Support for the creation or improvement of policy, regulatory and legislative frameworks (e.g. green transport zones, governance of ports, sustainable construction)
    • Support for Chile’s inclusion in the Construction Sector Transparency Initiative (CoST).
  4. Financial Services
    • Support for the development of policy and regulatory reform for the Pacific Alliance Integrated Market (MILA).
    • Support for the promotion of emerging opportunities offered by MILA to the UK financial services sector.
    • Support for the resolution of investment barriers in Chile
    • Support for the provision of Chilean cross border financial and professional services in the Pacific Alliance
  5. Regulation & Competition: These are cross cutting themes for Chile’s Prosperity Fund and bids should take this into account. Our particular focus is on ensuring robust regulation is in place to promote competition and transparency.
    • Support to reduce the complexity of regulatory procedures and strengthen the regulatory policymaking framework
    • Support to strengthen the competition policy framework
    • Support to strengthen pro-competitive regulation in services sectors (eg in sectors that are essential to value chains, such as telecommunications and transport)

How to bid

All bids must follow the guidance in the Central Guidance for Implementers. But please note that for Chile the bidding process and timelines are different. The process will consist of a one stage full bid proposal. The deadline for submission of full bids is Monday 15 February 2016. The period for project completion will be approximately nine months according to the timetable below. Typical projects range in value from £50,000 to £100,000.

Bids should highlight:

  • Evidence of strategic fit to the Chile Prosperity Fund priority areas;
  • Rationale for why the UK is the partner of choice for the project? This might be due to profiling UK commercial or policy expertise, replicating/adapting a British policy, experience of British implementer or link to UK policy priorities, with a focus on the five thematic areas identified;
  • Evidence of support from the Chilean government, with evidence that relevant Ministries and other Chilean government agencies have been consulted and are supportive of the project proposal. Or if they are not, the bid should explain how the project has sufficient buy-in from the necessary stakeholders to deliver the expected outcomes.

The British Embassy in Mexico is the regional coordinator for Latin America and will be processing the Prosperity Fund bids for Chile. Bids in word format (including an Activity Based Budget in excel format) should be submitted in English by email with the title “Prosperity Fund 2016: Project title-Name of the implementer-Chile”, to the British Embassy in Mexico City: Any queries prior to submission should be sent to the British Embassy in Santiago:

Indicative timeline for Chile’s Prosperity Fund 2016

Bidding Round Timeline for the period January-December 2016

Date Activity
24 Dec Call for full bids opens
15 Feb Deadline for submission of full bids, including an Activity Based Budget (ABB)
March 2016 Announcement of results
1 April Contracts and financial arrangements completed
4 April Projects begin
23 Dec Projects completed