News article

Southern Africa Prosperity Fund: Call for Project Bids for 2016/17 Second Round

Projects are invited in the fields of Public-Private Partnership skills and Sustainable Urban Development.

This is a second call for project bids for Southern Africa. The call opened on 16 May 2016. Deadline for proposals is 2 June 2016. Projects are invited in the fields of Public-Private Partnership skills and Sustainable Urban Development. The first South Africa bidding round closed on 15 February 2016. You can view the first bidding round here.

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 global 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.

The Prosperity Fund will form a small but integral element of the UK’s total Official Development Assistance (ODA) commitment of 0.7% of GNI. It will primarily be focused on ODA eligible middle income countries, contributing to poverty reduction and complementing DFID’s work in poorer countries. In this way, the Fund will contribute towards meeting the new Sustainable Development Goals. ODA spend under the Fund will be fully consistent with OECD DAC criteria. The Foreign & Commonwealth Office’s programme funds seek to create real, measurable outcomes in support of the FCO’s policy goals. Since 2011, the Prosperity Fund has supported the FCO’s Prosperity Priority on opening markets, ensuring access to resources, and promoting sustainable global growth, mainly in the emerging powers.

Southern Africa Prosperity Fund Objectives

Projects should be designed principally to overcome the barriers to growth. As well as contributing to a reduction in poverty in recipient countries, reforms should create opportunities for international business, specifically UK companies. Both elements need to be brought out strongly in any bids. Moreover, proposals should consider how to encourage the relevant beneficiary countries to look to the UK as a partner of choice.

Bids are invited in the following areas:

  • Innovative Infrastructure Financing through Public-Private Partnerships – South Africa

There is a $50bn spending gap in Southern Africa’s infrastructure needs. This cuts growth in the region by up to 2% of GDP every year whilst too few projects overcome the funding barrier. Public-Private Partnerships are one solution to addressing this gap. The Prosperity Fund is thus soliciting proposals to support skills, awareness and adoption of the PPP model in South Africa. Specifically, municipalities have an important role in delivering projects to implement the National Development Plan. We are looking for project proposals which would increase the capacity of municipalities to prepare and deliver PPP projects in collaboration with the National Treasury and other key stakeholders in South Africa. This should include sharing best practice, technical training and case studies; and correspond with UK standards, and the South African Government’s PPP guidelines.

  • Innovative Infrastructure Financing through Public-Private Partnerships – Angola

To finance large scale infrastructure projects across Southern Africa, it is important that innovative models are developed to function in different cultures and legal systems (civil and common law). The City of Luanda has published a Provincial Master Plan to regenerate the city, and there is a desire to build Strategic capacity for Angola in public infrastructure delivery learning more from UK experience and expertise. The Prosperity Fund seeks proposals which would facilitate the transfer of PPP skills and support further development of the Master Plan. Proposals which enhance regional collaboration, particularly with South Africa, would be welcome.

  • Sustainable Urban Development - Mozambique

Offshore reserves of oil and gas offer Mozambique the opportunity for rapid economic development, especially in urban centres. The UK Government has previously supported development of a blueprint to guide the growth of the City of Pemba. We are looking for proposals which will refine and implement plans to develop Pemba into a long-term sustainable export hub with a diversified economy. Proposals should support the identification of:

  1. A sustainable growth model which appeals to investors;
  2. Opportunities for international – including UK – companies to offer expertise;
  3. The impact on social and environmental indicators.

Application Instructions

This Call for Bids will close on Thursday 2 June 2016. To apply, please download, complete and send the following to South Africa Projects by 2 June 2016:

  1. A copy of the Project Proposal Form (full bid) (in MS Word format);
  2. An Activity Based Budget (in MS Excel format) see example in the Central Guidance for Implementers; and
  3. Evidence of stakeholder engagement and local buy-in.

Bidders are strongly encouraged to contact the Prosperity Team at the British High Commission, Pretoria to discuss potential bids in advance. Bids for the above three thematic areas will be accepted for projects with a value of approximately £100k (per thematic bid each). Bidders are welcome to submit separate proposals in any of these areas. All bids will be rigorously scrutinised to ensure value for money and impact. It will be important to demonstrate mechanisms to monitor and evaluate outcomes. Successful proposals will need to be delivered and spent in full by December 2016 and must comply with the UK’s International Development Act and the OECD DAC rules on Official Development Assistance. Bidders should familiarise themselves with how proposals are assessed in the Central Guidance for Implementers and the FCO’s Standard Grant Contract before applying.

Bidding Timeline

Monday 16 May 2016 Call for Bids published
Thursday 2 June 2016 Deadline for bids to be submitted

Contracts will be signed with successful bidders and projects can expect to start mid June 2016.

Southern Africa Prosperity Fund Contacts

Interested parties are strongly encouraged to contact the Prosperity Team at the British High Commission, Pretoria via e-mail South Africa Projects to discuss proposals before they are submitted.

Documents for Downloading

Full Project Proposal Form

Example of Activity Based Budget Template