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Environmental Andean Program in Latin America

National Association of State Development Agencies
Miles Friedman, Executive Director
750 First Street, N.E., Suite 710
Washington, D.C. 20002
Tel: (202) 898-1302
Fax: (202) 898-1312


The objective of the Latin America Fund for the Environment Andean Program (LAFE-Andean) is to improve the quality of life for individuals in Andean Region of Latin America by fostering the application of US environmental experience, technology and practice. Utilizing small matching grants, the Fund hopes to stimulate investment in areas of critical Latin American need. Small and medium-sized U.S. firms are eligible for matching grant funds to facilitate the transfer of environmental technologies and services between the U.S. and Latin America. The program was initiated by the United States Agency for International Development (USAID) and the National Association of State Development Agencies (NASDA) through a Cooperative Agreement with the Environmental Export Council (EEC).

The Latin America Fund for the Environment Andean Program embodies the challenging objective of balancing environmental improvement and economic development. The program will use the marketplace as a long-term development tool and a mechanism for technology transfer. Each matching grant, not to exceed $15,000, is intended to serve as a catalyst to draw appropriate small to medium sized U.S. companies into targeted countries in the Andean Region of Latin America. All project activity must be completed by September 30, 1999.

The Fund focuses on activities in pollution prevention / cleaner production. These include, but are not limited to, activities emphasizing reuse, recycle or prevention of industrial pollutants. Activities to be considered under this program may include technical seminars, projects involving the transfer of needed environmental equipment and when necessary, the adaptation of U.S. technology for use in pilot demonstrations in country.

The Program Offers:
Financial Support - The Fund can provide matching grants of up to $15,000 to qualified applicants.

Grants from the Fund can be used to finance such activities as: specific projects dealing with innovative pollution prevention concepts in industry, technology workshops; equipment demonstrations; focused business missions and professional exchange programs. The Fund cannot be used to subsidize trade shows or conference costs. Salaries and overhead costs are ineligible.

Eligible expenses include: $5,000 total for per diem and international airfare (coach class on a US airline in accordance with USAID air fare travel regulations); shipment of equipment for pilot demonstrations; the costs of conducting technical and training workshops; in-country logistics (applicants are encouraged to consider USDOC Gold Key services, however, no grant funding can be used to pay for this activity); translation of literature or interpreters; adaptation of technology at the site; and other appropriate costs.
Proposal Assistance - NASDA will provide advice on project concept and proposal development and will serve as a liaison between USAID and the applicant.

Grant Award Process:

Step 1 - Concept Paper

NASDA wants to make the application process as easy as possible. Once the market opportunity has been identified, the Fund applicant should discuss the project concept with NASDA and submit a one-page description of the proposed activity. This "concept paper" should include company name and contact information; size and export-related activities of the company; countries targeted and any previous international experience; brief description of the pollution prevention technology; proposed project implementation activities and dates for project activity. NASDA will assist the applicant in designing a final, five-page project proposal if the concept paper is accepted.

Step 2 - Proposal and Sponsor

These final proposals should be submitted by a recognized non-profit trade development multiplier organization. Contact NASDA for suggestions on eligible non-profit sponsors. These groups may serve as either the direct organizer or simply as support for constituent companies. Applicant proposals should cover the points in the format suggested on the last page of this brochure, but should be neither lengthy nor elaborate. In most cases, a total of five pages will be sufficient. Company brochures are strongly recommended.

Step 3 - Award Process

NASDA will screen the grant requests and present them to a project review panel. This panel is composed of representatives from such organizations as USAID, the US Department of Commerce, the Environmental Protection Agency, the Department of Energy, the National Pollution Prevention Roundtable, state trade agencies, trade associations and other individuals knowledgeable about Latin America, trade and environmental issues.

Once approved, NASDA will send a letter of commitment and an agreement to the sponsoring organization. NASDA will provide reimbursement for the approved expenditures once the vouchers and project reports are received. Grant recipients are entitled to receive no more than two financial reimbursements; the first of which cannot exceed more than half of the approved grant amount. A written report must accompany each reimbursement request.

Eligible Target Countries:
Bolivia Ecuador Peru Chile (mining sector only)

The matching ratio ( 2:1)
A ratio of applicant resources is required for each grant dollar. This ratio is required for total budget figures, not for individual budget line items. The preceding list of countries includes the ratio of resources required to match each grant dollar from the Fund (e.g. $2 match for every $1 of grant funds). This matching portion of the budget (grant or match portion) may not include salaries, overhead or the purchase of the US company's demonstration technology.

Priority Sectors:
# Metal finishing/electroplating/metal surface treatment # Tanneries
# Non-ferrous metal mining and smelting # Food processing

Fund for the Environment Review Panel Checklist
[Applicants are encouraged to include the following criteria in their project proposals]

US Company Description
Applicant is less than $50 million in sales (applicants have demonstrated need for funds)
Applicant has a proven US technology
Applicant has demonstrated prior experience in proposed field of activity

Latin American Focus
Latin American contact(s) show potential for purchase of US equipment or services
Latin American contact(s) are committed to project
Project targets meet priority environmental needs in eligible Latin American market

Potential for Environmental/Developmental Impact
US technology demonstrates promise of significant positive impact on environment
Project description includes follow-up and training elements
Project approach emphasizes sustainability through transfer of cleaner technology or pollution prevention (options such as: elimination or reduction of pollutants in the process stream; substitution of more toxic materials with less toxic materials; promotion of internal plant or process recycle; recovery of valuable plant by-products for usage exchange elsewhere in the process or as a feedstock for other processes; recycling of wastes outside the plant premises; other innovative natural systems treatment options)

Potential for Commercial Benefit to the US
Project has a high probability for short-term and long-term sales
Project has a high potential for sustainability
Project incorporates a multiplier effect exposing additional US companies and organizations
Project shows a potential for the establishment of long-term business relationships

Project Management
Project description shows evidence of appropriate in-country support
Project time line allows for preparation and follow-up (all project activity must be completed by September 30, 1999)
Approach is well designed and thought out
Company shows evidence of market research and preparation

Previous Experience with USAID activities
Participant has accessed resources offered by complementary USAID activities (e.g. EEC, USETI)

Budget is reasonable, requesting up to $5,000 for airfare and per diem and including no salaries
Project meets matching requirement as established by USAID

Suggested Format for Proposals

a. Name and address of organization requesting funding
b. Contact name and title
c. Size of company (number of employees and annual revenue)
d. Description of previous sales activities in the US and in international markets

a. Project strategy and key activities/industry subsector focus
b. Project start and completion dates
c. Definition of the major tasks to be performed
d. Evidence of technology/equipment transfer
e. Time line/agenda indicating outline of project activities
f. List of potential contacts in target country(ies)

a. Environmental/Energy problem addressed by the project
b. Description of benefits for both the US and Latin America
c. Evidence that technology is proven

a. Brief description / literature of the non-profit intermediary and of each participating company
b. Brief description of the environmental technologies or services involved in the project

a. Specific accomplishments - dollar value of business transactions expected within six months
b. Longer-term benefits, including licensing and distribution arrangements, impact of transferred technology on the environmental situation in the Latin American country

a. Description of how the project will be sustained
b. Steps to ensure results are supported and measured

The National Association of State Development Agencies (NASDA) is a private, nonprofit trade association whose members include the cabinet-level economic development officials from state governments across the United States. The Environmental Export Council (EEC) is the preeminent trade association in the U.S. promoting the exports of U.S. Environmental goods and services. Its over 120 members principally include both large and small corporations from all sectors of the environmental industry.

For more information on the Fund for the Environment contact NASDA:
National Association of State Development Agencies
ATTN: Latin America Fund for the Environment Andean Program
750 First St., N.E.
Suite 710
Washington, D.C. 20002
Tel: 202/898-1302 Fax: 202/898-1312
Web Page: www.nasda.com
E-mail: jpike@nasda.com or awolfe@nasda.com

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