REQUEST FOR APPLICATIONS

Funding Opportunity Title: Strengthening Transparency and

Accountability in the Extractive Industries
through Civil Society and Local Government
Engagement in EITI at the Subnational Level
Announcement Type: Request for Applications
Funding Opportunity Number: RFA No. 004
Issuance Date: 14 September 2017
Deadline for Submission of Applications 15 October 2017
Submit Applications to: GrantsFPI@dai.com

SECTION I - FUNDING OPPORTUNITY DESCRIPTION

A. Description of the Proposed Program

Background

The Extractive Industries Transparency Initiative (EITI) is a global standard for transparent and
accountable management of natural resources, including the oil, gas, and mining industries. The
EITI standard seeks to strengthen government and company systems, and promote inclusive
participation among industry players, including the government, the business or private sector,
civil society, and local communities. The Philippines was admitted as an EITI candidate country
in May 2013; since then, the Philippines-EITI (PH-EITI) has taken steps to achieve an EITI
compliant status or full membership.

Due to the local footprint of oil, gas, and mining operations and their proximity to the
community, active local demand for more information represents a major challenge for local
governments, as well as for mining companies.

The role of local governments

The Philippine Constitution declares the national government as owner of all lands and natural
resources. The national government is also responsible for issuing all large-scale mining
licenses, outlining basic environmental and safety requirements, and developing the bulk of
fiscal regime provisions. The national government is required to share 40 percent of the excise
taxes and royalty fees that it collects from extraction activities with the local governments. Local
governments are also entitled to a 40 percent share of the national internal revenue taxes.

The decentralization of environmental and fiscal policy provides an opportunity for local
governments to influence extractive sector related policy. A general welfare clause in the Local
Government Code, allows local governments at all levels to create legislation that can bar certain
mining practices within their jurisdiction. In addition, any project that will have environmental
impact must undergo a local consultation process culminating in a decision from the local
legislative body, the sanggunian, on whether to approve the project or not. Both local and

RFA No. 004 Page 1

national governments have the power to monitor whether companies are acting in compliance
with environmental obligations.

Licensing and oversight of small-scale mining

Even though small-scale mining (SSM) in the Philippines is defined by law as mining by
individuals or cooperatives with minimal or no mechanization, in reality SSM in the country
represents a range of mechanized and non-mechanized operations. Some families seasonally
conduct SSM in their backyards or ancestral lands with simple tools as part of a subsistence
lifestyle. At the other end of the spectrum are mining companies that operate heavy machinery
year-round, employ dozens of workers, and bring their extracted product directly to barges at
nearby ports. There are also modern SSM cooperatives, registered associations with mechanized
processing plants with some employees.

Two co-existing laws complicate the licensing and oversight of the small-scale mining (SSM)
industry. Presidential Decree No. 1899 establishing Small-Scale Mining as a New Dimension in
Mineral Development passed in 1984, gives the national government, specifically the Director
of the Mines and Geo-Sciences Bureau, the authority to issue SSM permits. The Republic Act
No. 7076, known as the Peoples Small-Scale Mining Act of 1991, was passed without
repealing the previous legislation. Under this law, the provincial or city mining regulatory board
(P/CMRB) has the authority to approve applications for SSM permits and contracts. This board
is composed of representatives from the DENR, the SSM sector, the large-scale mining (LSM)
industry, and environmental groups. The Supreme Court of the Philippines has declared both
laws valid1. As a result, both national laws set limits on the scope of SSM production (maximum
of 50,000 dry metric tons of ore), capital investment (maximum of PhP10 million), and use of
tools (no explosives or heavy machinery).

Minahang Bayan was created by the government to curb illegal mining and mitigate the adverse
environmental impacts of indiscriminate mining operations in the country. A Minahang Bayan
centralizes the processing of minerals within a zone where the government can better monitor
gold production by small-scale miners. There are 300,000 to 400,000 small-scale miners
operating in 40 mineral-rich provinces nationwide, the majority of which operates outside the
Minahang Bayan2. About 28 tons of gold or 80 percent of the countrys annual gold production
were produced by this sector in the past decade3. Small-scale mining contributes around 70
percent of the countrys total gold output before the noticeable drop in gold purchases of the
Bangko Sentral ng Pilipinas (BSP)4.

1 There are some who argue that PD No. 1899, or the old small-scale mining law, still governs since it has not been expressly
repealed by RA No. 7076. This has not been categorically settled by the Supreme Court. However, recent pronouncements by
the Executive Branch, namely DOJ Opinion No. 29, Series of 2011, and Executive Order (EO) No. 79, Series of 2012, made it
clear that RA No. 7076 is the primary law on small-scale mining in the Philippines.
2 Galvez, J.K. (2016). DENR asks all small-scale miners to stop operating, The Manila Times, August 8. (available at:

http://www.manilatimes.net/denr-asks-all-small-scale-miners-to-stop-operating/278702/)
3 Featuredesk (2016). PH Government Halts Small-Scale Mining Operations, PageOne.ph, August 8. (available at:

http://pageone.ph/ph-government-halts-small-scale-mining-operations/)
4
Ibid.

RFA No. 004 Page 2

Project Objectives

The purpose of this Request for Applications (RFA) is to solicit applications from local civil
society organizations (CSOs) and academic or research institutions that are capable of
developing and/or suggesting improvements to transparency and accountability mechanisms for
extractive operations at the subnational level, and to strengthen capacities of local CSOs, local
government units (LGUs), indigenous groups and the communities themselves to engage in the
EITI process and in extractive-related activities in host localities.

For this particular RFA, the fund grantee/s should be able to significantly undertake activities
that will address the following specific objectives:

1. Increase public understanding of the management of natural resources and public

accessibility of data at the subnational level;
2. Create space and opportunities for dialogue and constructive engagement in natural resource
management in order to build trust and reduce conflict among stakeholders at the subnational
level;
3. Strengthen capacities of local CSOs, indigenous groups, local communities and LGUs, so
that they would understand and appreciate their roles, responsibilities and rights under the
Philippines legislative framework for mining and other extractive operations and to enable
them to collectively engage in the EITI process and extractive-related activities in their
localities.
4. Strengthen local resource management and local government systems to promote
transparency and accountability in the extractive sector; and
5. Increase public understanding of the extractive industry impacts on the local economy and
the environment.

Project Components

Successful CSOs may consider but are not limited to implementing the following
component activities, provided that the proposal will include components that will
contribute to the attainment of the above project activities.

1. Capacity-building activities to promote transparency and accountability in the extractive

industry at the subnational level through any or all of the following:
- establishment or strengthening of subnational EITI multi-stakeholder groups (MSGs) in
resource-rich localities;
- promotion of CSO, IP or community representation in the subnational MSGs;
- forging of partnership agreements between subnational MSG and LGU in crafting local
policies that will institutionalize subnational EITI in at the LGU level (e.g. through local
ordinances passed by the sanggunian or executive orders passed by the local chief
executive (i.e. governor, mayor), etc.
- partnership agreements between local communities and government (e.g. DENR, NCIP,
LGUs) that will facilitate the activation or re-activation of mining oversight committees

RFA No. 004 Page 3

 (P/CMRB5, MMT6) to ensure genuine CSO participation and representation in these
committees, as well as improve regulatory oversight and governance of the extractive
sector at the subnational level
- building of coalitions that will help push for and sustain governance reforms in the
extractive sector in their respective localities/communities (e.g. when and where possible,
communities, local CSOs and LGUs could come together to discuss and evaluate the
merits and challenges of the establishment of Minahang Bayan in their respective
communities);
2. Communication and outreach activities that will increase peoples awareness and
understanding of the EITI and extractive industry issues in their specific localities (e.g.
development and dissemination of primers on the EITI and extractive industry issues within
the localities, institutional arrangements in the extractive sector at the national and sub-
national government)
3. Scoping studies to find out the size and coverage of both large- and small-scale mining
activities in any of the following resource-rich regions and provinces7:
- Camarines Norte province in Region V (Bicol Region);
- Marinduque, Romblon, and Palawan in Region IV-B;
- Baguio City in Benguet in the Cordillera Administrative Region (CAR);
- Zambales province in Central Luzon region; and
- Negros Occidental and Antique (Semirara island, Caluya) in Region VI

Scoping studies are essential to understand the mining/extractive issues that are unique or
specific to a particular geographical area, and would thus allow the successful grantees to
focus on the issues that need immediate attention and are manageable to undertake within
the FPI/EITI project budget and time frame. It is also expected that the scoping studies
will contribute to the contextual information section of the PH-EITI report which the PH-
EITI Secretariat put together annually or to the literature on the extractive industry in the
Philippines.

Expected outputs/deliverables

In order to achieve the objectives of this RFA, the grantees will be required to deliver any or all
of the following expected outputs:

1. Local ordinances/issuances passed by the sanggunian or executive orders by the local chief
executives (i.e. governor, mayor), etc., to create EITI MSG at the city/municipal or
provincial level;

5 Provincial/City Mining Regulatory Board (P/CMRB) has the authority to approve applications for SSM permits and contracts.
This board is composed of representatives from the DENR, the SSM sector, the large-scale mining (LSM) industry, and
environmental groups.
6 Multipartite Monitoring Team (MMT) is a community-based multi-sectoral team organized for the purpose of monitoring the

proponents compliance with Environmental Compliance Certificate (ECC) conditions, Environmental Management
Plan/Program (EMP) and applicable laws, rules and regulations.
7 EITI grants during the previous three RFAs were awarded to local CSOs that implemented it in Mindanao thus, this RFA

provides other CSOs the opportunity to apply and implement their projects in resource-rich localities in regions and provinces
in Luzon and the Visayas.

RFA No. 004 Page 4

2. Subnational EITI MSGs, composed of representatives of the mining company, host LGUs,
and national government (i.e. (DENR, MGB, NCIP, etc.), CSOs, IP organizations, and the
local community are established or strengthened; and
3. Local CSOs, LGUs, and subnational EITI MSGs are trained on EITI and have a clear
understanding of extractive industry issues in their communities (impact of EITI and
extractive operations on the environment, local and aggregate economy, and other socio-
cultural aspects)

Successful grantees will also be given the opportunity to define their deliverables/outputs
based on the scope that will be agreed with USAID/FPI.

B. Overall Grant Fund Objectives

Development Alternatives, Incorporated Facilitating Public Investments Project (FPI) is a

United States Agency for International Development (USAID) funded program supporting the
Philippine Government in expanding public and private investment in the Philippines through
higher tax revenue and public expenditure reforms.

The EITI Grant Fund is a component of USAID/FPI intended to promote activities

designed to: expand and promote more meaningful CSO engagement in the EITI process;
increase transparency and accountability in the management of the extractive sector; and
contribute to sustainable reforms in extractive sector governance. USAID/FPI is soliciting
applications from civil society organizations, academic or research institutions, and similar
organizations to implement the scope of work discussed above.

Specifically, this EITI grant fund aims to enhance transparency and accountability in the
management of the Philippines extractive sector through stronger oversight of extractive
industry revenues by the local CSOs, IP groups, and local communities; broaden support for the
EITI MSG in implementing the EITI process at the subnational level; and strengthen governance
systems.

C. Administration of Award

Awards will be administered in accordance with USAID Standard Provisions for non-U.S. non-
governmental organizations. Applicants may obtain copies of the referenced material at the
following websites:

22 CFR 226 : http://www.access.gpo.gov/nara/cfr/waisidx/06/22cfr226_06.html

OMB circulars: http://www.whitehouse.gov/omb/circulars/
Standard Provisions for Non-U.S., Nongovernmental Recipients:
http://usaid.gov/policy/ads/300/303mab.pdf

RFA No. 004 Page 5

SECTION II- AWARD INFORMATION

The total amount of funding currently available for this RFA is approximately USD 300,000. FPI
may choose to fully fund or incrementally fund the chosen Application(s).

FPI anticipates the start date on October 16, 2017 with a performance period of up to 5 months.

Since it is expected that the scope of implementation per grant is at the local level (provincial,
regional, or island cluster), FPI anticipates awarding more than one grant to fund successful
applications submitted in response to this RFA. The number of awards and amount of available
funding are subject to change.

SECTION III- ELIGIBILITY INFORMATION

Registered local non-governmental organizations may apply. The minimum eligibility criteria for
this grant are:
Legally registered organization (e.g. SEC registration and by-laws/ PCNC accreditation,
CDA registration, TIN); Individuals cannot apply for the grant.
Philippine-based non-governmental organization. Proposals from U.S. organizations or
Third Country non-governmental organizations are not eligible for this grant.
Cleared from U.S. Government exclusion lists.

Cost share is not required from applicants. However, there are some limitations on what items
can be covered by the grant fund. It is suggested that the grantee either provide counterpart funds
from their own accounts or request counterpart funds from other organizations to augment
project funding.

CSOs and/ or non-government organizations without previous USAID experience are

encouraged to apply.

SECTION IV- APPLICATION AND SUBMISSION INFORMATION

A. Address to Request Application Package

The Application Package for this RFA, along with the Grant Application Template and Budget
Template, are accessible by soft copy through the following means:

Request by email GrantsFPI@dai.com

Applications must be prepared in accordance with the instructions below. Selection for award
will be made in accordance with the evaluation criteria in Section V.

RFA No. 004 Page 6

Applicants should retain, for their records, one copy of all parts of the application and all
attachments that accompany their application. Erasures or other changes must be initialed by the
person signing the application.

Note that all applicants may be subject to a pre-award financial and management review and
must demonstrate that they have a rigorous financial and monitoring system in place that will
ensure auditable systems and records.

FPI will only consider complete applications. A complete application should have:
Grant Application
Grant Budget

B. Grant Application Template

To facilitate the competitive review of the applications, proposals should complete the
information requested in the Grant Application Template provided in the Application Packet.
Specifically, the Grant Application Template requests the following information:

Grantee Details (Name, Address, Contact Details, Legal Registration, List of Relevant
Projects Undertaken )
Proposed Project Description (Project Objectives, Analysis of the Problem, Methodology,
Proposed Sites and Target Beneficiaries, Implementation Plan, Success Indicators,
Project Team Composition and Qualifications, and Dissemination Plan)
Budget Narrative (There is a separate spreadsheet file for the cost details. However, the
description and explanation of each cost item should be included in this section).

C. Grant Budget Template

The Grant Budget Template is in Excel format. It has a Budget Summary Sheet and a Detailed
Budget Sheet which applicants should accomplish. The grant allows for the following items:
Salaries, Travel and Transport, Supplies, and Other Direct Costs.

There are some limitations to the grant. The EITI Grant Fund cannot fund International Travel,
Per Diems, or Furniture.

D. Application Submission Information

All materials submitted must be in English.

Applications must be submitted electronically by 5 p.m. on 15 October 2017. Applications may

be submitted via e-mail to GrantsFPI@dai.com. All correspondence must include the relevant
RFA Number and Title. Hard copies will not be accepted.

E. Questions Regarding the RFA

Applicants can send questions regarding the RFA via email to GrantsFPI@dai.com.

RFA No. 004 Page 7

Prospective applicants are encouraged to email FPI to indicate interest in applying for the grant.
This will include you in the mailing list so that answers to clarifications to the grant can be
shared with everyone. Any prospective applicant desiring an explanation or interpretation of this
RFA must request it in writing one week before the application deadline to allow for a reply to
reach all prospective applicants before the submission of their applications. Oral explanations or
instructions given before award of a grant will not be binding. Any information given to a
prospective applicant concerning this RFA will be furnished promptly to all other prospective
applicants as an amendment of this RFA, if that information is necessary in submitting
applications or if the lack of it would be prejudicial to any other prospective applicants.

SECTION V APPLICATION REVIEW INFORMATION

A. Evaluation Criteria for Application

The evaluation includes the following phases and steps:

Technical Proposal Evaluation
Financial Proposal Evaluation

B. Technical Proposal Evaluation (80 points)

Only applicants who meet the minimum eligibility criteria will be considered for technical
evaluation. In order to advance beyond the Technical Proposal Evaluation, a technical proposal
must achieve a minimum average score of 60 points.

Evaluation Criteria Points

1 Minimum 3 year track record in undertaking similar projects 20
Working with IPs/ communities hosting extractive
operations
Research capacity/ Project management
Producing knowledge products (manual/ guidebook)
Organizing and facilitating a forum/ workshop
2 Organizational capability to undertake tasks 20
Project team composition and qualifications
Current reach of organizations to network with IPs
3 Quality of proposed project 40
Demonstrable understanding of the problem as well as the
objectives and higher goals of the EITI grant fund and the
EITI in general
Methodology
Selection of sites
Feasibility of proposed project given timeframe
Plan to disseminate outputs

RFA No. 004 Page 8

C. Budget Proposal Evaluation (20 points)

Budget evaluation will be conducted only among those applicants who meet the minimum
technical score. The budget evaluation determines whether the proposed line items are
reasonable, are allowed within the EITI Grant Fund parameters, and the assumptions are viable.
The budget evaluation will focus on identifying which among the applications offer the best
value in response to the defined project objectives.

The minimum acceptable score for the financial proposal is 15.

D. Review and Selection Process

After the RFA application submission deadline, the Grants Coordinator will review all submitted
applications for meeting minimum eligibility requirements and compliance with submission
instructions. Once the applications have been vetted, a Review Committee is going to be
convened to review the application against the evaluation criteria.

It is expected that the applications will be reviewed within 5 days after application submission
deadline. FPI Grants Coordinator may contact the applicants to seek clarifications/ explanations
as part of the review and selection process.

SECTION VI AWARD AND ADMINISTRATION INFORMATION

A. Pre-Award Responsibility Determination

Applicants are required to submit a copy of their accounting manual and personnel and
policy manual.
Applicants are required to get a DUNS number from www.dnb.com for grants worth
more than USD25,000. (This is free of charge.)
All USAID-sponsored assistance awards are required to adhere to branding policies and
revised marking requirements for grants and cooperative agreements in accordance with
ADS 320.
Applicants must submit any additional evidence of responsibility for FPI Staff to make a
determination of responsibility. As stipulated in the grant application, applicants must
submit documents including audited financial reports, certificates of
registration/incorporation in order to substantiate that the Applicant:
o has adequate financial and human resources or the ability to obtain such resources
as required during the performance of the award;
o has the ability to comply with the award conditions, taking into account all
existing and currently prospective commitments of the applicant -
nongovernmental and governmental;
o has a satisfactory record of performance. Past relevant unsatisfactory performance
is ordinarily sufficient to justify a finding of non-responsibility, unless there is
clear evidence of subsequent satisfactory performance;
o has a satisfactory record of integrity and business ethics.

RFA No. 004 Page 9

B. Post- Selection Information

Following selection of an awardee, FPI will inform the successful applicant concerning the
award. A notice of award signed by FPIs Chief of Party is the official authorization document,
which FPI will provide either electronically or in hard copy to the successful applicants main
point of contact.

FPI also will notify unsuccessful applicants concerning their status after selection has been made.

C. General Information on Reporting Requirements

Program implementation reporting will be specified in the final grant award document. A
performance monitoring and evaluation plan, using established baseline data and specific,
measurable targets and indicators will also be agreed upon. Financial reporting will be in
accordance with the requirements of the obligating document.

SECTION VII- FPI PROJECT CONTACT

The point of contact for this RFA is:

Carlos Tulali, FPI Grants Coordinator

Unit B, 27F Rufino Pacific Tower
6784 Ayala Ave., Makati City
1200 Philippines
GrantsFPI@dai.com

SECTION VIII - OTHER INFORMATION

Issuance of this RFA does not constitute an award or commitment on the part of FPI, nor does it
commit FPI to pay for costs incurred in the preparation and submission of an application. FPI
reserves the right to fund any or none of the applications submitted. Further, FPI reserves the
right to make no awards as a result of this RFA.

RFA No. 004 Page 10