Only “eligible costs” can be taken into account for a grant. These are detailed below. The budget is therefore both a cost estimate and a ceiling for “eligible costs”. Note that the eligible costs must be based on real itemised budgets, not lump sums.

Recommendations to award a grant are always subject to the condition that the checking process which precedes the signing of the contract does not reveal problems requiring changes to the budget. The checks may give rise to requests for clarification and may lead the JBF to impose reductions.

It is therefore in the applicant’s interest to engage in prudent shopping and to provide a realistic and cost-effective budget taking into account inflation, possible exchange rate fluctuations, and other potential increases in costs.

Eligible direct costs

To be eligible for payment under the call for proposals, costs must:

• be necessary for carrying out the project, be provided for in the contract with JBF and comply with the principles of sound financial management, in particular value for money and cost-effectiveness;
• have actually been incurred by the beneficiaries during the implementing period for the project as defined in the contract with JBF, costs incurred by beneficiaries after submission of their full grant application (as established by JBF records) will also be eligible;
• be recorded in the Beneficiary’s accounts, be identifiable and verifiable, and be backed up by originals of supporting documents and deliverables.

Subject to those conditions and where relevant to the contract-award procedures being respected, eligible direct costs borne by the Beneficiary cover:

• expenditure for technical and business development services;
• purchase of non-core equipment (e.g. testing equipment, computers, hand tools, irrigation equipment) and supplies or, where appropriate, the rental of necessary equipment, specifically for the purposes of the Project;
• the cost of specified and necessary consumables;
• costs arising from the requirements of the contract (dissemination of information, printing of workshops/training documents, translations and other eligible activities ensuring sustainability) including financial services costs (in particular the cost of transfers);

Contingency reserve

A contingency reserve not exceeding 5% of the direct eligible costs may be included in the Budget of the Project. It can only be used with the prior written authorisation of the JBF.

Co-financing

Co-financing is the cost-share contribution to the project’s budget made by the applicant, its partners or any party other than the JBF, Government or other Donor source. It may consist of partial payments to costs that are otherwise funded by the JBF (co-payments), the full payment of some project costs and contributions in kind. The cost of core-equipment needed for the project and staff directly assigned to the project are considered as co-financing when paid for by the Anchor firm, supply chain members or other non-JBF/Donor source.

Contributions in kind

Contributions in kind are non-cash contributions made by the Beneficiary or partners these may include such things as the use of equipment or facilities which are needed to implement the project. In such cases, they should be included in the Budget Templates to the Concept Note and Application related to the expected sources of funding for the project.  Where contributions in-kind are being submitted to the JBF to meet the co-financing requirements of an activity, documents to establish the value of the contribution should be supplied.

Ineligible costs

The following costs are not eligible for JBF financing:

• staff salaries, except as co-financing
• debts and provisions for losses or debts;
• interest owed;
• items already financed by Government of Jamaica and/or the World Bank;
• purchases of land
• construction or purchase of buildings (except where inextricably linked to the implementation of the project;
• core equipment, that is equipment that is fundamental to the operation of the supply chain, except as co-financing
• purchase of motor vehicles
• currency exchange losses;
• GCT where this is refundable;
• replacement of stolen, damaged goods
• credits to third parties;
• raw materials, working capital and other routine operational costs (i.e. not part of a pilot or proof of concept programme);

Please note that possible modifications of the budget may not lead to an increase of the amount of the grant requested from the JBF nor of the percentage of the co-financing.