Request for Application (RFA): ESCO Pilot Grant for Cold Storage

USAID Urja Nepal Program

Call for Request for Application (RFA) for Grant Program

RFA-URJA-2024-002

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The USAID Urja Nepal Program (Urja Nepal) is supported by the American people through the United States Agency for International Development and implemented by Deloitte Consulting LLP. Urja Nepal   aims to create a financially viable electricity sector that provides affordable, reliable, and secure power and enables the entry of private sector investment into the Nepal market through following four objectives: 

Objective 1: Utility Performance and Relevant Sector Policies are Improved.

Objective 2: Advanced Energy Systems Deployed

Objective 3: Increased Private Sector Engagement

Objective 4: Cross Border Electricity Trade between Nepal and its Neighbors Advanced

In Nepal, agriculture engages 66% of the population and contributes significantly to the national economy. To boost food production and reduce imports, cold storage facilities are essential for maintaining a stable food supply and stabilizing prices. However, Nepal's cold storage sector faces challenges like high operating costs, outdated technology, and unreliable power supply. To address these issues, the Urja Nepal project proposes implementing energy-efficient technologies in cold storage through Energy Service Company (ESCO) based business models. An energy service company (ESCO) offers a range of energy solutions, including project design, retrofitting, energy conservation, and risk management, under the Energy Saving Performance Contracting (ESPC) model.

The solicitation invites applications from eligible partners to carry out the grant activity “ESCO Pilot Grant for Cold Storage”. The primary objective of this grant is to enable the ESCO market in Nepal. For this we are requesting applicants to implement energy efficiency and energy transition interventions in the cold storage buildings. Applicants will also work on developing a robust energy service performance contract with the end users, ensuring that payments from end users are based on meeting specified performance guarantees related to the energy efficiency project.

Applicants must show how the proposed program will provide “additionality” to the existing program. Additionality is defined as a quick scale up or expansion of an existing program that will need minimal overhead and operational costs. USAID Urja Nepal plans to award one grant under this RFA with a grant amount not exceeding USD 25,000 equivalent to NPR 3.3 million only.

Urja Nepal requests technical and budget applications (using a provided template) from eligible applicants who are registered or have the legal authority to do business in Nepal with the following documents, by July 26, 2024. Requests should include the following:

• A completed technical application.
• A completed budget application
• Budget supporting documents, including the budget narrative, as applicable
• A copy of the applicant’s valid legal registration
• Organizational profile and/or chart.
• Operation policies and procedures
• Statutory audit report of fiscal year 2079/080
• CVs for project personnel (if necessary)

To apply, applications must be submitted online through the Fluxx Grants Portal. To do so, interested applicants must:

1. Register on the portal at https://dgrants.fluxx.io/apply/Urja
2. Receive the login credentials
3. Apply for the grant as per the instruction from the portal.

The detailed RFA document can be obtained by following this link or send a request to info@urja-nepal.com with RFA-URJA-2024-002 in subject line.

Issuance of this RFA does not obligate Deloitte and/or Urja Nepal to award a grant, nor will it pay any costs associated with the preparation or submission of application. Furthermore, Deloitte and/or Urja Nepal reserve the right to reject all applications, if such action is considered to be in the best interest of Deloitte and/or Urja Nepal.

The final award is contingent upon USAID approval.