General Guidelines for Organization of a Supply chain group

Typically, following a call for proposals a lead or anchor enterprise will initiate contacts between enterprises within its supply chain interested in supporting the project, either linked vertically down the supply chain (e.g. collection, processing, production, preservation, storage, distribution, marketing) or holding common interests within one of the stages of the chain (lateral). The following is an outline of the likely procedure that will be followed thereafter. This is subject to amendment according to the practical requirements of the group.

1. A project working group is convened. The Anchor enterprise is formally approved (if applicable) as chair; rules are adopted for meetings and management of the group.

2. A coordination agreement is reached within the working group on the rights and responsibilities of the anchor firm and each enterprise, such as: coordination of project preparation; allocation of the grant and co-payments between network enterprises; signatory power with the FMU; type of agreement between the anchor firm and the network enterprises; procedure for selection of equipment/service providers; coordination of implementation; reporting responsibilities; ownership of joint assets funded by the grant; winding up of the project etc.

3. The working group agrees on the project objectives and concept and prepares the Concept Note, ensuring compliance with relevant applicant eligibility conditions (e.g. size, licensing, ownership, operating history, funding availability for copayment; etc). Where some aspects of the project involve one or few members of the supply chain group, the working group may decide in collaboration with and on the agreement of the member/s involved to submit this as a sub-project to be managed by the direct beneficiary.

4. If the project is found eligible by the JBF and the concept is approved then the subproject proposal is prepared under the coordination of the Anchor Firm and submitted to the FMU in accordance with the group’s coordination agreement. At this point outside assistance in project preparation can be obtained if needed from various sources, including the JBF, and specialist consultants

5. If the proposal is approved then a grant agreement is signed between the JBF and the anchor firm. Depending on the actual terms of the coordination agreement among the Supply Chain Group, agreements may be initialed between the anchor firm and the network enterprises.

6. Where sub-project/s are a part of the proposal, separate agreements may be signed between the JBF and the direct beneficiary firms. This would depend on the capacity of the individual firms.

7. Following the preparation phase and the award the working group may be reconstituted as a supervisory committee for the implementation of the project.